🚗 Ford Pulls Back on the Lightning. EREVs Move Center Stage.

🚙 Plus: How AI is reshaping the buyer journey, and what dealers should watch next.

December 17, 2025

TOGETHER WITH


Happy Wednesday, Fam!

Each morning, we are one day closer to the release of Season 2 of The Truth about Car Dealers.

Be sure you’re keeping an eye on socials for announcements (and maybe a couple of teasers while we wait).

Check out season 1 on Amazon Prime, YouTube, or Tubi.

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

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Nelly Headlines All-Star Lineup at Dave Cantin Group's NADA Celebration

Get ready for the ultimate industry celebration at NADA 2026!

Join Dave Cantin Group to celebrate the who's who of the automotive world for a night to remember at LIV Las Vegas Nightclub inside the Fontainebleau Thursday, Feb. 5 2026.

Headlined by hip-hop icons Nelly, Fat Joe and Rev Run, this exclusive invite-only experience is one for the books.

Request your table or VIP pass at [email protected] and be part of what we know is THE most legendary celebration at NADA.

THE NEWS

Ford Ends All-Electric F-150 Lightning Production And Shifts EV Strategy

giphy/ “Farewell F-150 Lightning”

Ford is ending production of the all-electric F-150 Lightning and shifting investment toward hybrids, plug-ins, and extended-range EVs (EREVs). The company says large EVs in the $50k to $80k range have not shown a clear path to profitability at current demand levels, so it’s reallocating capital accordingly.

Financially, Ford expects about $19.5B in special items tied to restructuring and EV pullbacks, including $8.5B in EV asset write-downs, plus $5.5B in cash charges through 2027. Ford also raised 2025 adjusted EBIT guidance to about $7B.

Why Ford Is Replacing The Lightning With An Extended-Range EV

Operationally, Ford plans to replace the all-electric Lightning with an extended-range version using a gas generator to extend driving range. It is also repurposing excess battery capacity toward stationary energy storage.

For context, this is a notable pivot from Ford’s early Lightning-era pitch. In a 2021 interview, CEO Jim Farley emphasized customers didn’t want an EV “spaceship” and that scale EV adoption would require affordable price points, not high-dollar niche products. That framing makes today’s move feel less like a reversal and more like a reset around what the market will actually sustain.

Why Automakers Are Turning To Extended-Range EVs Right Now

giphy

Ford isn’t alone.

Legacy Automakers Are Using EREVs To Reduce Risk Without Abandoning EVs

Volkswagen is openly exploring EREVs for Europe, positioning them as a way to lower costs and reduce range anxiety without abandoning electrification altogether. The framing is pragmatic, not ideological.

Hyundai is already deeper into execution. The Santa Fe EREV is heading toward production in late 2026, with global sales planned for 2027. North America is a priority launch market, signaling Hyundai sees EREVs as a mainstream SUV solution, not a niche hedge.

BMW is revisiting familiar ground. Analysts and brand watchers point back to the i3 REx as proof the company already understands the architecture. A modern EREV, potentially in an X5-sized package, is increasingly viewed as a logical bridge for range-sensitive buyers.

Chinese Automakers Are Treating EREVs As Volume And Margin Tools

China’s EV leaders are moving fastest. Xpeng just launched its X9 EREV with a claimed 1,600+ km total range and pricing below its BEV counterpart, underscoring how EREVs are being used as volume and margin tools, not just transition tech.

EV Startups Have Less Room To Pivot If The Market Shifts

Rivian stands apart. The company has reiterated it will not pursue hybrids or EREVs, doubling down on pure BEVs for its upcoming R2 and R3. That conviction may pay off long term, but it also highlights a key divide: legacy automakers can pivot powertrains mid-cycle, while EV startups have far less room to maneuver if the market shifts under them.

EREVs aren’t a retreat from electrification. They’re becoming the industry’s most flexible way to meet customers where they actually are.

Car Shoppers Are Using AI Long Before They Visit A Dealership

giphy/”Where The Journey Starts”

When automakers change direction this fast, shoppers go looking for someone to make it make sense. Today, that first stop is often AI, long before a dealership visit.

Live from Automobility LA 2025, we spoke with Amie Lindaas, Director of Research and Insights at Cars Commerce, about how that shift is already showing up in real shopping behavior.

AI Is Now The First Stop In The Car-Buying Journey

The headline stat is hard to ignore:

83% of car shoppers have used an AI tool, and nearly half have used one specifically for car shopping.

That means comparisons, feature tradeoffs, and shortlists are forming before a shopper ever hits a dealer site.

Most Shoppers Still Start With Needs, Not Brands

Over 70% of shoppers arrive undecided on make and model.

Customers do not think in brands first. They think in needs: budget, space, safety, capability.

Cars Commerce built its AI-powered search experience, Carson, around that reality. Early results show shoppers return more often, save more vehicles, and convert to VDPs and leads at higher rates.

What This Means For Dealers Right Now

AI is not replacing the dealer’s role. It is changing where the conversation starts.

Shoppers are arriving more informed and more open. The stores that win will be the ones that translate early AI-driven research into clear guidance, confidence, and decisions that actually fit the customer.

AROUND THE ASOTU-VERSE

Dealer Conferences and Industry Events (2026)

Trends Dealers Should Watch

  • EV Charging Funds Frozen: 16 states and D.C. sued the federal government after USDOT halted approvals for EV charging grants, putting $1.8B in funding at risk and adding more uncertainty to public charging buildout.

  • AI Fatigue Goes Official: Merriam-Webster named “slop” its 2025 Word of the Year.

  • Nissan Moves EVs From Talk To Metal: Nissan started production of the next-gen LEAF in the UK, investing £450M and positioning the model as a more affordable, longer-range EV with U.S. pricing starting under $30K.

Today in History

  • 1903: The Wright brothers made the first controlled, powered, heavier-than-air flight in the Wright Flyer at Kitty Hawk, NC. ✈️ 

    1933: The first NFL Championship Game is played at Wrigley Field in Chicago between the New York Giants and the Chicago Bears. The Bears won 23–21. 🏈 

  • 1969: The United States Air Force closes its study of UFOs. 👽️ 

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