🚗 Honda's Hybrid Ambitions

TOGETHER WITH

Howdy Fam!

It’s still wild out there.

Tariffs shift. EV demand wobbles. Hybrids take the lead.
But the through line’s the same: dealers adapt faster than anyone else—and when they do, everybody wins.

Across the industry, one truth keeps showing up: adapting isn’t optional for success, and staying informed isn’t optional for adapting.

Join us Monday-Saturday for The Automotive State of the Union podcast on Apple or Spotify, YouTube, or LinkedIn.

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

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THE UNION

The Daily Digest

Honda’s Hybrid Bet Gets Serious

Honda’s building a lighter, modular hybrid platform for 2027 models—200 pounds leaner, 60% parts-shared, and up to 30% more efficient. The goal: 2.3M hybrid sales by 2030, nearly triple last year’s total. It’s a bet that “hybrid” isn’t a halfway house anymore—it’s the new default for drivers who want mpg without range anxiety.

Customers who said they’d “wait for cheaper EVs” are walking back in, asking about gas mileage again. Sometimes the middle of the road really is the fastest lane.

BMW Finds Margin in a Tariff Storm

BMW doubled its Q3 margin to 5.2% despite tariffs reducing it by nearly two points. With heavy R&D spend behind it and new EVs due in 2026, the brand’s playing long ball—steady pricing, clean inventory, and a clear message: confidence sells.

When the market shouts “discount,” BMW whispers “discipline,” and it seems to be working. Proof that not every storm needs a panic button—sometimes you just tighten the coat and keep walking.

Rivian’s Small Win in a Tough Neighborhood

Rivian posted its second-ever gross profit, thanks to tighter costs and its partnership with Volkswagen's software. The R2 midsize SUV remains on schedule, and tariff impacts have shrunk dramatically. But the broader EV mood is still cautious—Lucid’s losses deepen, credits are gone, and hybrid demand is eating into EV headlines.

Perhaps the story here isn’t about revival, but rather about realism. EV buyers want predictability, not promises. Warranty, charging confidence, and total cost still move more metal than revolution ever did.

Used Market: Tight, Pricey, and Kinda Weird

Used supply remains scarce (-0.6% YoY), retail prices are up 2.8%, and days-to-turn dropped to 50. EV values fell 10% while gas units barely moved, and late-model staples like Civics and Broncos are within 10% of new-car pricing. Adding 84-month refis saves shoppers $179 a month, and you’ve got buyers bending math to stay in the market.

Demand’s alive—it just hurts a little. When budgets stretch, patience and empathy do the heavy lifting.

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Read more on these in our Daily Digest on LinkedIn.

TOGETHER WITH VAUTO

Vehicle Transfers: Every Dealer Group’s Profit Improvement Opportunity

Here’s a way dealer groups can offset market-driven pressures on your gross profit: Re-think when and why you typically transfer vehicles between stores.

For many groups, vehicle transfers happen around 45 days, when someone decides a vehicle sat too long without selling. The vehicles then spend another 30 days for sale at the receiving store, often with less-than-optimal results.

But top-performing groups have flipped this traditional script, using insights from their vAuto solutions to move vehicles to the right store faster, helping turn potential losses into profits.

Discover how your group can turn vehicle transfers into operational advantage.

From the Automotive State of the Union

Toyota raises guidance despite tariffs

“Surprising 62% jump” in Q2 profit and a higher full-year outlook—even with nearly $3B in quarterly tariff costs. Leadership stressed Toyota isn’t North America-dependent anymore; strength in Europe/Africa and currency tailwinds did work. A U.S. $10B manufacturing comment made headlines (“Go out and buy a Toyota”).

Expect a steady hand from Toyota on pricing and allocation. If you retail the brand, lean into resilience + hybrid mix. If you compete with it, prep for fewer easy conquest deals—price integrity is back.

Waymo adds San Diego, Detroit, Vegas (snow test, anyone?)

Service hits San Diego in 2026, with Detroit (snow-readiness emphasized) and Las Vegas close behind; LA/Phoenix/Bay Area already live. Expansion continues toward Miami, Dallas, DC—even London.

Start a lightweight ADAS/AV readiness checklist in service (sensor calibration, glass, tires). In sales, a simple “what’s real vs. hype” one-pager builds trust with tech-curious shoppers.

Holiday music before Thanksgiving?

Only 20% of consumers want stores to wait; 55% are good with early/mid-Nov, 22% even October. Mood Media says holiday scents/music increase dwell time. Paul/Kyle note the flip side: protect employees from playlist fatigue and reduce involuntary dwell (waits).

Try light, local holiday cues (music, scent, giving drives). Pair ambiance with faster write-ups and clearer ETAs so “feel-good” doesn’t turn into frustration.

Today in History

• 1869: Rutgers College defeats Princeton University (then known as the College of New Jersey) in the first official intercollegiate American football game. 🏈 

• 1899: The first Packard automobile makes its initial test drive in Ohio. 🏁 

• 1947: Meet the Press, the longest-running television program in history, makes its debut on NBC. 📺️ 

Until tomorrow, dear Friends!