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- 🥳 January 2: 2025 Predictions, GM’s Chinese Decline, and Stellantis’s Proposed Break-Up?
🥳 January 2: 2025 Predictions, GM’s Chinese Decline, and Stellantis’s Proposed Break-Up?
Chris Reeves
January 02, 2025
The Gist
đź”® Unpredictable Predictions
2025 forecasts are here! From Steve Greenfield’s surprising takes to the team’s bold bets, the auto industry’s crystal ball is in overdrive.
🏳️ GM’s China Retreat: A Roadblock or U-Turn?
Western automakers are losing their grip on China, with GM’s sales down 19% and Chinese brands dominating EV and hybrid sales. The writing’s on the wall: adapt or exit.
🔥 Jeep Drama: Should Stellantis Split?
Former Ohio dealer Bernie Moreno wants Jeep, Ram, Dodge, and Chrysler back under American ownership. Stellantis says “no thanks” while touting its U.S. legacy.
❄️ Keeping It Clean: Stellantis’ Snow Solution
A heated wheel-well patent could save drivers from ice-clogged misery. Practical and protective, it’s a must-watch for snowy states.
🌍 Hybrids: China’s EVs Get Backup
Hybrids outshine battery-only EVs in China, with BYD leading the charge. U.S. dealers should watch how hybrids bridge the electrification gap.
🌞 California’s Renewable Energy Streak
100% renewable energy for 98 days in 2024? California nailed it, proving renewables and batteries can power a major economy without blackouts.
⛽️ Mazda's Gasoline Comeback
Mazda breaks records with its gas-powered crossovers and hybrids. Balanced offerings prove there’s still life in traditional engines.
🎮 Pokémon Go’s Sneaky Map Grab
Niantic turned Pikachu chases into a massive AI mapping project. Your nostalgia powered their tech revolution, and it could reshape navigation for dealerships too.
Fuel for Thought
đź”® Unpredictable Predictions
As 2025 kicks off, the auto world is brimming with bold forecasts. Paul and Kyle predict shifts in EV strategies, AI-driven deal-making, and even better coffee at conferences (finally). Steve Greenfield takes it up a notch, predicting mergers between GM and Ford, VW acquiring Rivian, and BYD snapping up Stellantis. Oh, and Generation Beta? They’re growing up with AI and flying cars—almost.
🏳️ GM’s China Retreat: A Roadblock or U-Turn?
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Once thriving in China, Western automakers face significant challenges as Chinese brands dominate the market with electric vehicles (EVs) and hybrids. Here’s how this seismic shift affects U.S. car dealers:
Declining Market Share: GM’s Chinese sales dropped 19% in 2024, losing $347 million in the first nine months alone. Chinese automakers now control 70% of the market, up from 38% five years ago.
The EV Boom: China’s rapid transition to EVs leaves foreign automakers scrambling. EVs and hybrids dominate sales, with policies encouraging local brands over Western competitors.
Exodus Concerns: Analysts predict that most Western automakers may exit China within five years. GM’s joint venture with SAIC, expiring in 2027, hangs in the balance.
Global Repercussions: Losing the Chinese market could have dire long-term consequences. For U.S. dealers, it highlights the importance of staying ahead in EV and hybrid offerings.
🔥 Jeep Drama: Should Stellantis Split?
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Why does Bernie Moreno want Stellantis to spin off Jeep, Ram, Dodge, and Chrysler?
Apparently, “freedom” for these brands means ditching their European overlords. Moreno, a former Ohio dealer turned senator-elect, claims Stellantis has been a “terrible steward.”
Is Stellantis taking this lying down?
Not quite. They boast about employing thousands in the Midwest and emphasize their 100-year U.S. legacy. Sounds like PR damage control to us.
Could Moreno actually make this happen?
Well, his alignment with the incoming Trump administration suggests a push for domestic ownership, but whether Stellantis budges is another story.
What’s the dealer takeaway?
Even if this doesn’t pan out, it shows how politics can ripple into branding and operations. Dealers should stay alert to consumer sentiments tied to “American-made” perceptions.
❄️ Keeping It Clean: Stellantis’ Snow Solution
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Heated Wheel Wells: A Warm Winter Welcome
Snow-clogged wheel wells might soon be a thing of the past. Stellantis has patented a heating element to melt away ice, slush, and snow in real time. This innovation could appeal to customers in snowy regions, especially those keen on off-roading or adventure vehicles.
Practical Implications for Dealers
Beyond convenience, this tech prevents damage to brakes, suspension, and sensors, making it a potential selling point in winter package deals. Dealers in the Great Lakes and New England states should keep an eye on consumer interest in this feature.
🌍 Hybrids: China’s EVs Gets Backup
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China’s EV market is booming, but hybrids are stealing the spotlight. Here’s what U.S. dealers can learn from the trend:
Hybrid Popularity Soars: BYD, China’s market leader, sold 2.5 million hybrids in 2024—outpacing fully electric models for the first time.
Market Penetration: New energy vehicles (NEVs), including EVs and hybrids, accounted for 52.3% of car sales in November 2024, up from 36% in 2023.
Local Incentives: Cities like Beijing prioritize license plates for NEVs, pushing consumer demand.
Competitive Lessons: U.S. dealers should watch how hybrids bridge the gap for customers hesitant to go fully electric.
🌞 California’s Renewable Energy Streak: Lessons for Dealers
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Breaking Records Without Blackouts
California’s grid ran on 100% renewable energy for 98 days in 2024, proving that wind, solar, and batteries can power a major economy reliably. Fossil fuel use dropped by 40% during this period, a testament to the state’s green energy policies.
What’s Driving This Surge?
Solar output rose 31%, wind power increased 8%, and battery storage skyrocketed by 105%. The ability to store and redistribute energy overnight was a game-changer, showing that renewables can match demand with supply more efficiently.
Implications for Auto Dealers
This shift underscores the growing appeal of EVs and hybrids, especially in states pushing for green energy adoption. Dealers can capitalize on these trends by emphasizing the environmental and economic benefits of EV ownership.
⛽️ Mazda's Gasoline Comeback: Breaking Records in a Hybrid World
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Gas-Powered Glory: Mazda’s Record Year
While many automakers are leaning heavily into EVs, Mazda is smashing records with its gas-powered vehicles. The brand expects to sell 420,000 vehicles in 2024—a 16% increase—and aims for 450,000 in 2025. Its success lies in strong crossover sales and a hybrid strategy that’s easing into electrification without rushing.
What This Means for U.S. Dealers
Mazda’s cautious approach to electrification resonates with traditional buyers wary of fully electric options. For U.S. dealerships, this shows the value of offering a balanced lineup that includes gas-powered, hybrid, and eventual EV models to cater to diverse customer preferences.
🎮 Pokémon Go’s Sneaky Map Grab: AI’s Real MVP?
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Wait, Pokémon Go wasn’t just about catching Pikachu?
Nope. Niantic wasn’t just building nostalgia—it was building an AI-powered navigation empire by crowdsourcing data from millions of players. Turns out, your Charmander chase helped map out streets, parks, and even church backyards.
Why does Niantic need my local park scanned 10,000 times?
Because the more images they gather, the better their 3D map becomes. Niantic’s Visual Positioning System now powers AR apps, autonomous navigation, and who knows—maybe a future where your phone can actually tell you where to stand in line at Starbucks.
Should we be worried about this tech takeover?
Not unless you mind training "50 million neural networks" with your free labor. Niantic’s scanning system could revolutionize navigation and AR, but it also raises questions about privacy and data ownership. Dealers, take note: location-based tech could shape how customers shop, even in your showroom.
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