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- 😮 January 15: Sticker Shock, Invisible Runners, and Amazon's Electric Fleet
😮 January 15: Sticker Shock, Invisible Runners, and Amazon's Electric Fleet
Chris Reeves
January 15, 2025
The Gist
💸 Sticker Shock: December’s new-car ATP hit $49,740, fueled by luxury buyers snapping up $80K+ rides like the Tesla Cybertruck.
🚗 Honda Goes Big: The Acura RSX will debut in 2026 as Honda’s first original EV, featuring its new in-house Asimo OS.
🌙 Safety Fail: IIHS found that AEB systems struggle to detect pedestrians in reflective clothing at night—oops.
🛠️ VW Update: The ID.4 recall is resolved, lease deals are live, and Skoda Auto posted a 6.9% delivery increase in 2024.
🚛 Amazon's Green Push: Over 200 Mercedes electric semis are joining its fleet, accelerating the shift to sustainable logistics.
🐬 Gen Z EV Envy: TikTokers want China’s $15K BYD Dolphin, but U.S. tariffs are blocking the buzzworthy EV.
🐎 Ford’s Speed Demon: The $325K Mustang GTD “Spirit of America” wows with 815 horsepower and 202 mph.
✂️ Tesla’s Time-Out: Model Y production halts in Shanghai for upgrades to streamline its top-selling EV.
Fuel for Thought
💸 Sticker Shock: New-Car Prices Hit $49,740 in December
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Luxury buyers are flexing, and everyone else is feeling it.
December closed with the Average Transaction Price (ATP) for new vehicles at $49,740, flirting dangerously close to the all-time high of $49,958 set in 2022. Pent-up demand, rising incentives, and luxury purchases pushed prices higher for the fourth consecutive month.
Breaking Down the Numbers
Luxury Leads the Pack: Sales of vehicles priced $80K+ rose to 5.6% of total sales (up from the typical 4.4%). Models like the Tesla Cybertruck and Cadillac Escalade drove the spike.
Incentives Climbed: Averaging 8% of ATP in December, these deals added up to approximately $3,958 per vehicle—44% higher YoY.
EV Impact: Strong EV sales (average ATP: $55,544) also nudged prices upward.
So…
Good News: Inventory levels are healthier, and incentives are bringing buyers back to the table.
Bad News: Rising prices could alienate value-focused customers. Highlight affordability and practical options.
“December to remember,” indeed. But as luxury leads the charge, middle-market customers may feel left behind. Use this dynamic to push promotions on lower-priced models or certified pre-owned vehicles.
🚗 Honda’s Asimo-Driven RSX to Electrify Ohio
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Coming in 2026: Honda’s First Original EV Platform + Asimo OS
Honda is putting on its big-boy EV pants with the Acura RSX, its first electric vehicle built on an original platform—not borrowed tech from GM. Slated for production in Ohio by late 2025, the RSX will also debut Honda’s in-house Asimo operating system (yes, named after the quirky robot).
Why It Matters: Dealers, get ready for some buzz. This is a “look at me” move from Honda, signaling they’re ready to compete on EV turf.
Why does this matter when you’re still moving CR-Vs like hotcakes? Because EV buyers are getting savvier, and this tech could make Honda’s EVs sticky.
Honda’s $4.4 billion Ohio facility is a joint venture with LG Chem, ensuring these EVs stay red, white, and blue…ish. We’ll keep an eye on how this unfolds—especially on price and margins.
🌙 Nightmares for Night Pedestrians: Autobrake Fails the Visibility Test
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When the lights go down, the safety tech checks out.
A new IIHS study shines a dim light on pedestrian safety at night. Automatic Emergency Braking (AEB) systems, hailed as the guardians of modern vehicles, struggle to detect pedestrians wearing reflective clothing—yes, the very gear that keeps humans visible to other humans.
What the Tests Revealed
Vehicles Tested: Honda CR-V, Mazda CX-5, and Subaru Forester (2023 models).
Findings:
Honda and Mazda hit the vast majority of reflective-dummy pedestrians.
Subaru fared better, avoiding most collisions, but still stumbled in one test.
Dummies in black clothing were somehow safer than those with reflective strips.
This counterintuitive outcome baffled researchers. A senior IIHS scientist, David Kidd speculates that reflective strips, designed for human recognition, confuse vehicle sensors. “The motion of reflective strips on limbs allows drivers to recognize patterns, but AEB systems? Not so much,” Kidd explained.
Customer Confidence: Safety features sell vehicles, but tests like this can shake consumer trust. Be prepared to answer questions.
🛠️ GM Secures Graphite for EV Batteries: Made in North America
Synthetic Supply Chain to Start in 2027
GM inked a $multi-billion deal with Norway’s Vianode to source synthetic graphite for EV batteries. The move cuts reliance on China, which controls 95% of the graphite market.
Dealer Angle: North American sourcing could mean steadier production and fewer headaches down the road. Plus, fewer geopolitical risks always feel good.
Vianode’s plant will crank out enough synthetic graphite to power 1.5 million EVs annually by 2030. GM’s Ultium platform just got a little more “made in America.”
🔧 VW Hits Reset: From ID.4 Fixes to Skoda’s Stellar Year
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Recalls, Resolutions, and Record-Setting Deliveries
Volkswagen is making moves across the board, balancing the ID.4’s comeback with impressive growth from its Czech subsidiary, Skoda Auto.
First, the ID.4 electric SUV is back in action after resolving a significant recall affecting 98,806 units. The issue? Faulty door handles that could open mid-drive (yikes). The fix is in, and VW dealerships are offering free repairs alongside competitive lease deals to lure buyers back.
ID.4 at a Glance
Lease Offer: $149/month for 24 months after a $7,500 EV lease bonus, with $999 due at signing for qualified customers.
Specs Refresher:
Base model range: 275 miles.
Starts at $38,995.
Buyer Considerations: While it’s practical and affordable, it doesn’t quite lead the pack in charging speed or infotainment.
But it’s not just about recovery. Over at Skoda Auto, VW is seeing a different kind of success.
Skoda’s Growth Story
Skoda delivered 926,600 vehicles globally in 2024, a 6.9% year-over-year increase, with Germany leading the charge (+18.5%). While sales dipped in India and China, Skoda is doubling down on Europe with new innovations, including the launch of MEB battery production at its Mlada Boleslav facility.
What It Means for Dealers
Volkswagen’s 2024 highlights show a brand leveraging both recovery and innovation:
For ID.4 Sellers: The door-handle fix is a great conversation starter, paired with attractive lease deals to make it a strong contender in the EV space.
For the Big Picture: Skoda’s success reinforces VW’s European strength and points to opportunities for scaling its EV infrastructure globally.
Volkswagen’s balancing act—resolving recalls while driving growth—shows its commitment to staying competitive in both performance and practicality. Keep these updates in mind as you position VW models for 2025.
🚛 Amazon Goes Big on Electric Semis
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Over 200 Mercedes-Benz eActros 600s are joining Amazon’s fleet.
Amazon just placed its largest-ever order of electric heavy goods vehicles (eHGVs) with Mercedes-Benz Trucks. The fleet of eActros 600s, boasting 310 miles of range and 360kW fast charging, will hit UK and German roads later this year. Each truck can recharge from 20–80% in just over an hour—perfect for Amazon’s demanding logistics network.
Big Picture
Sustainability Goals: Amazon’s push aligns with its Climate Pledge, targeting net-zero emissions by 2040.
Fleet Expansion:
Over 200 eActros 600s to join Amazon’s existing fleet of 38 electric semis.
Investment in micro-mobility hubs for foot and cargo bike deliveries in urban areas.
Doubling Rivian electric delivery vans in Germany to 600+ units.
Dealer Insights
Ripple Effects: Amazon’s move could accelerate EV adoption in logistics, sparking more fleet buyers to consider electric semis.
Infrastructure Investment: Amazon’s charging network could set a new standard for heavy-duty EVs.
Competitive Pressure: Smaller logistics firms may look to dealerships for EV solutions as they compete with Amazon’s green fleet.
🐬 TikTok Refugees Discover China’s EV Game
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U.S. Tariffs Block the $15K BYD Dolphin
As TikTok’s U.S. ban looms, Gen Z is flocking to Red Note (China’s Xiaohongshu) and finding drool-worthy EVs like the BYD Dolphin—a $15,000 compact EV that’s affordable, stylish, and absolutely unavailable here.
🐎 Ford’s $325K Mustang GTD: A Patriotic Powerhouse
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“Spirit of America” Edition Hits the Racetrack
Ford unveiled a special edition Mustang GTD to honor its jet-inspired predecessor. With a 5.2L supercharged V8 pumping out 815 horsepower, this $325K beast is poised for collectors and speed junkies.
✂️ Tesla Hits Pause on Model Y Production
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Gigafactory Shanghai Gets an Upgrade
Tesla’s shutting down part of its Model Y production in Shanghai for three weeks starting January 22. The move aims to streamline assembly lines for its updated version.
Why It Matters: Model Y is the world’s best-selling EV, and China is Tesla’s largest market. Any hiccups could ripple across the EV convo.
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