TOGETHER WITH

It’s today, Fam!

Check out the details and RSVP for the live premiere of The Truth About Car Dealers Season 2 here.

I can say with confidence that a lot of love, work, sweat, and maybe some tears went into bringing these stories to you.

Shout out to the humans who still know stories are what make us, us.

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

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Most dealerships have a revenue growth plan, but few have an employee retention plan.

When a top salesperson or service advisor leaves, you lose months of productivity, tribal knowledge, and customer relationships.

The best retention strategy? Know where you stand before they walk out the door.

ESi-Q's Pulse Survey delivers real-time insight into employee satisfaction, helping you spot early warning signs and take action before small frustrations become resignations.

Discover how ESi-Q helps dealerships reduce turnover before it starts.

New-vehicle pricing opened 2026 on a high note, and dealers are feeling it in the showroom. According to Kelley Blue Book, the average transaction price in January climbed to $49,191, the highest January level on record. While prices dipped slightly from December in a normal seasonal move, incentives also dropped as automakers pulled back to protect margins.

For dealers, the takeaway is clear: pricing strength is still holding, but it is being driven more by vehicle mix than aggressive discounting.

Automaker incentive packages averaged 6.5% of ATP, down from 7.5% in December. At the same time, full-size pickups continue to pull the market higher, with average MSRPs above $70K for the fifth straight month. Entry-level vehicles are also disappearing fast, with no new models averaging below $20,000.

Honda delivered one of the sharpest reminders yet that EV transitions are not linear. The automaker reported roughly $1.7B in EV-related write-offs and expenses across the final nine months of 2025, with global EV sales falling to just 15,000 units in the most recent quarter.

Honda executives said they are conducting a “fundamental review” of strategy, and the company has already reduced its 2030 EV sales expectations significantly.

Ford is also signaling a more grounded approach, especially in commercial. Reports suggest the company is prioritizing an “affordable” next-generation van strategy built around gas and hybrid drivetrains, rather than launching entirely new EV van programs in North America.

That fits Ford’s broader emphasis on Ford Pro, trucks, and high-return segments as affordability becomes a bigger consumer pressure point.

In Europe, Germany’s auto industry is flashing a warning light. A VDA survey found 72% of small and midsize suppliers plan to reduce investment in Germany, with many shifting projects abroad. Job cuts are also heavily concentrated at home, underscoring the strain of global competition and the EV transition.

On the retail side, Carvana continues building a franchised footprint, acquiring its fifth Stellantis dealership with a Sacramento Chrysler-Dodge-Jeep-Ram store. The move reinforces that digital-first players are not abandoning physical rooftops, but doubling down on blended models.

Jaguar is recalling 2,278 2020–2021 I-Pace EVs in the U.S. over a risk the high-voltage battery may overheat and increase fire risk. As an interim step, owners are advised to park and charge outside and limit charging to 90% until a final remedy is announced. Owner notification letters are expected April 3, 2026.

Ford has released its Q4 and full-year 2025 results, and the story is a tough finish paired with a clear reset heading into 2026. Adjusted earnings came in at 13 cents per share, missing Wall Street’s 19-cent expectation, marking Ford’s largest quarterly earnings miss in four years.

Revenue was a brighter spot: Ford posted $45.9B in Q4 revenue and a record $187.3B for the full year, showing demand held up even as profitability took a hit.

Investors and dealers are now focused on what comes next. Ford’s results were weighed down by about $900M in unexpected tariff-related costs, plus ongoing disruption tied to a fire at a key aluminum supplier that continues to impact F-Series production, with the supplier not expected to be fully operational until mid-2026.

Meanwhile, the company recorded $15.5B in special charges tied largely to EV strategy changes and restructuring, contributing to an $11.1B Q4 net loss and an $8.2B full-year net loss.

Ford’s 2026 outlook is the headline going forward: the company is guiding to improved performance, forecasting $8B to $10B in adjusted EBIT and $5B to $6B in adjusted free cash flow, with trucks and commercial vehicles expected to continue anchoring the business.

BYD’s U.S. units filed suit challenging Trump-era tariffs, joining a growing list of companies seeking refunds for duties already paid.

Thanks for reading, Friend!

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