🚗 Ford Drops The Focus

TOGETHER WITH

We’ve got some good stuff for you today, Friend!

A weekly economic recap, Ford dropping the Focus, SAAR stats, and more automakers getting into rocket science.

Which is funny since "rocket science" used to mean really difficult. But now, everyone’s building rockets, so we need a new metaphor for “something only a few people seem to have mastered.”

Maybe “Algorithms?”

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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AROUND THE ASOTU-VERSE

🎉 ASOTU CON 2025: Fluff Free

If you think ASOTU CON is just another conference, think bigger. This is where dealers, OEMs, and industry disruptors come together to align vision, share insights, and push retail auto forward.

🔥 Big topics, Fluff-Free—AI, marketing, EVs, fixed ops, leadership & more.
🤝 Real connections—Meet the people who will move your business forward.
🎉 An experience, not just a conference—High-energy sessions & surprise activations.

Get a ticket and grab your spot in the future today!

THE NEWS

Focus Fades, SAAR Climbs, and More Rockets

Ford Focus Fades Out—What’s Next for the Blue Oval?

Ford is saying goodbye to the Focus. Production will officially end in November, marking the latest step in the brand’s shift away from traditional cars and toward SUVs, trucks, and performance models.

Why is Ford dropping the Focus?
CEO Jim Farley says Ford is “getting out of the boring-car business” and leaning into off-road and performance branding.

Key takeaways:

• Focus production ends in November, following the Fiesta and Mondeo’s exit.

• Ford’s European sales dropped 17% in 2024, with market share now at just 3.3%.

• The brand is betting on SUVs, with the Puma, Kuga, and EVs like the Mustang Mach-E leading the charge.

"Ford wasn't making enough money on cars like the Fiesta and Mondeo to justify future investment." — Jim Farley, Ford CEO

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SAAR Climbs, But Can Customers Keep Up?

February’s auto market showed strength, but affordability remains a growing concern. While sales climbed, rising costs and potential tariffs could shake up the road ahead.

What’s driving the market?

• SAAR hit 16M, up 2.1% YoY. Retail sales jumped 8.7%, while fleet sales fell 16.3%.

• Hybrids & BEVs surged, with hybrids up 38.6% and BEVs growing 18.8% YoY.

• Affordability pressures continue, with average monthly payments reaching a record $738.

• Tariff uncertainty looms, with a one-month exemption on Canadian/Mexican auto imports—potential cost increases of $4K–$12K per vehicle if enacted.

"It is still too soon to know the exact effects on vehicle pricing and volumes, but the team at NADA is following this issue closely." — NADA Chief Economist Patrick Manzi

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🚀 Automakers Are Looking to Space—What’s in It for Dealers?

Toyota, Honda, and Geely aren’t just building cars—they’re investing millions in rockets and satellites to fuel the future of connected mobility. But what does that mean for dealerships?

Why are automakers launching into space?
Because connected cars need more than just roads—they need a digital infrastructure that enhances navigation, mapping, and autonomous capabilities while opening up new revenue streams.

🔹 Toyota’s Woven by Toyota invested $44M into Japanese rocket maker Interstellar Technologies.
🔹 Honda has been developing its own reusable rocket since 2019.
🔹 Geely poured $326M into manufacturing satellites for vehicle connectivity.
🔹 By 2030, connected cars could generate $742B annually in new revenue.

"Once you sell that car, are there additional revenue streams you can get? Some of those services can be delivered from space.” — Micah Walter-Range, Caelus Partners

🥊 Quick Hits

• Google’s AI-only search is here—no more 10 blue links, just AI answers. Web traffic? Who knows. Accuracy? We’ll see. But ready or not, it’s coming. 🔍️ 

• Jobless claims dropped more than expected this last week. 📉 

• Rivian’s stock is sliding despite reports it's powering VW’s new budget EV. EV demand may be stalling, but its software business could keep things moving. 🛝 

TOGETHER WITH GUBAGOO

Our Friends at Gubagoo Are Bringing More Than Business Cards to ASOTU CON

Gubagoo is all about real conversations that drive real results—and they’re bringing that same energy to ASOTU CON. As the leader in dealership engagement, Gubagoo helps dealers connect with customers seamlessly across chat, text, video, and more, turning online interactions into confident buyers.

They know that the future of retail auto isn’t just about transactions—it’s about relationships. That’s why they continue to innovate, ensuring dealers can meet customers where they are and create a frictionless, high-trust experience from the first click to the final handshake.

We’re beyond grateful for their partnership in making ASOTU CON the can’t-miss event for dealers who are ready to level up.

See Gubagoo in action at ASOTU CON, May 13-16 in Baltimore!

DATA & INSIGHT

🎢 Stocks Dip, Confidence Slips, and Inflation Won't Quit

The stock market remains volatile as concerns over economic growth, trade policies, and big tech performance weigh on investor sentiment. Despite these headwinds, long-term fundamentals such as corporate profits and Fed policy continue to provide support.

• S&P 500 Struggles to Hold Gains: The index briefly erased its year-to-date gains before rebounding but remains 15% higher than a year ago. A 4.5% drop from February’s all-time high was driven by weak economic data and ongoing trade uncertainty.

• Tech Titans Lose Their Edge: The Magnificent 7 stocks have shifted from market leaders to market laggards. After fueling more than 50% of the S&P 500’s gains over the past two years, their underperformance has left investors questioning whether AI hype can sustain its momentum.

While the economy is experiencing some instability, consumer confidence is likewise hitting some speed bumps. Though GDP growth remains steady, spending is cooling, and auto sales took a sharp dip in January with supply also showing a dive.

• Consumer Confidence Skids: The Conference Board’s index dropped 6.6% in February, marking the lowest reading in over a year. Plans to purchase a vehicle also fell to levels not seen since early 2024.

• Gas Prices Inch Higher: National average gas prices rose slightly to $3.11 per gallon, but they remain 6% lower than a year ago.

• Slumping Supply: New inventory has dipped, but it’s still above 2023 levels. Meanwhile, used inventory is down 10% from 2024 which is tightening availability and keeping prices elevated.

New and used vehicle movement is under pressure, with new car sales declining for the second month and used movement staying relatively steady despite tightening inventory.

• New Vehicles: Movement fell 5% month-over-month and is expected to rebound in March but remain below year-ago levels. Seattle (-18%) and San Francisco (-10%) saw the steepest drops.

• Used Vehicles: Movement held steadier, down just 2%, with Atlanta (+6%), Dallas (+3%), and Houston (+4%) outperforming the national average.

👉 Keep reading here for even more weekly market updates. 👀

🔁 Today in History

• 1876: Alexander Graham Bell is granted a patent for an invention he calls the "telephone." ☎️ 

• 1929: GM buys Opel.💰️ 

•  2003: The MINI One D, the first mass-produced MINI with a diesel engine, was unveiled at the Geneva Motor Show. ⛽️