TOGETHER WITH

Welcome to Tuesday, Friend!

We know it’s the first official day of the NADA Show, but first.

We think we can speak for all of us when we say, ā€œWhat the heck, Phil?"

Anyway.

Enjoy the Show, everyone! And drink lots of water.

You’ll thank us tomorrow.

Keep Pushing Back Warm,
-Paul, Kyle, Chris & Kristi

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Courtesy That Feels Like Luxury

Waiting for a shuttle is so 2013.Ā 

Uber for Business lets you offer customers a premium-feeling ride without running a fleet or babysitting a schedule.Ā 

One click, and they’re headed home, to work, or wherever they need to go—without awkward waits in the service lounge or hoping the shuttle route loops back soon. It’s an easy way to make service feel like service, not a DMV.Ā 

Track it, tie it to the RO, and turn what used to be a stress point into a high-five moment.

THE NEWS

F&I’s Up, Margins Are Down

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Dealership profits cooled at the end of 2025, but new data suggests the industry’s footing heading into 2026 remains solid.

The latest Presidio–NCM Average Dealership Performance Benchmark shows a 9.7% dip in Q4 net pretax profit for the average U.S. franchised store—a pullback driven by tighter margins and a demand slowdown after a year of policy-fueled volatility.

Average gross profit per new vehicle retailed fell 1.4% to $2,005, with the sharpest compression at import-brand stores, followed by luxury and then domestic. The margin squeeze comes as many buyers accelerated purchases earlier in the year to avoid tariff hikes and the end of federal EV tax credits, leaving thinner profits to close out the year.

Even so, 2025 ended in positive territory.

Automotive News / Presidio-NCM

Annual profits rose 6.3%, marking the first full-year increase since 2021. Strong F&I (+9%) and service and parts (+7%) performance helped offset softer new-vehicle margins, with fixed ops now accounting for more than half of total dealership gross profit.

For now, dealers still have momentum. Just not margin to waste.

CA’s Push for New EV Incentives

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California’s looking to recharge its EV market with a new $200M incentive plan, but it comes with a few caveats.

Only first-time buyers would qualify, and automakers would have to match the state’s contribution.

Details are still pretty vague on how much buyers could get, but it’s clear California wants to keep momentum going after its previous rebate program ran out in 2023 and federal tax credits disappeared last fall.

China Bans Hidden Door Handles on EVs

Tenor

China just announced a ban on concealed door handles—the sleek, flush designs popularized by Tesla.

Starting next January, every new vehicle sold in the country will need a mechanical release inside and out, with enough space for a hand to grab and open it manually.

Officials say the change is about safety. Several fatal crashes have shown that electric-only latches can fail in power outages, trapping occupants inside.

The new rule means major redesigns for Chinese automakers, many of whom rely on these handles across their bestsellers. Existing models in late development will get a two-year grace period to comply.

It’s a small detail with big implications. As China, the world’s largest EV market, tightens safety standards, manufacturers everywhere may need to rethink how far design should go in chasing style over safety.

AROUND THE ASOTU-VERSE

Nightlife at NADA

If you’re in Vegas this week like we are, you know just how much there is to see and do. It can honestly be overwhelming.

That’s why we’ve made it easy to organize your time, and find the evening events you can’t miss—all in one place.

Check out NADAParties.com to get your plans together now.

Quick Hits

  • šŸ¤– AI: A new Reddit-style forum built solely for AI agents is resulting in some truly alarming posts. 😱

  • šŸŽ¶ Music: Bad Bunny made Grammy history after his all-Spanish album was awarded Album of the Year.

  • šŸ‘½ Weird: This is a Donkervoort P24 RS, and it’s as fun to say as it is to look at.

Today in History

  • 1870: Construction begins on the Brooklyn Bridge in NYC. šŸŽ

  • 1888: The drinking straw, invented by Marvin C. Sone, is patented. 🄤

  • 1959: Alaska is admitted as the 49th U.S. state. šŸ‡ŗšŸ‡ø

  • 2009: The first block in the blockchain for Bitcoin is established. ā›“ļø

Thanks for reading along, Friend! Same time tomorrow?

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