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- 🚗 New Tariffs. Cheaper Batteries. Who Wins?
🚗 New Tariffs. Cheaper Batteries. Who Wins?
🚙 From new tariffs to cheaper EVs and VW’s next move
TOGETHER WITH
Good morning, Fam!
We've got a glorious Tuesday full of customers, challenges, and triumphs ahead of us, but for now, it's just you, us, and the news. So, come on, let's read!
Tariffs. We have nothing clever to say about them. Except maybe some play on "A rising tide lifts all ships," but in reverse.
"The EV: Adopt or Abandon" saga continues. Battery prices and charging infrastructure have a little update that may bring EVs closer to American buyers.
VW has a "big" and "soon" plan in the US. Which we think is "vague" and "buzzwordy."
This is what we've got for today's digest. Of course, if you're longing for more, you could visit our IG.
Keep Pushing Back
-Paul, Kyle, Chris & Kristi
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Tariffs, Batteries, and VW
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Tariffs Take Center Stage
President Trump’s administration has enacted a sweeping 25% tariff on imported auto parts, with more likely on the way. The directive is clear: if you want to sell a car in the U.S., you'd better build all of it here. This move is already reshaping production plans across OEMs and could impact everything from model allocation to pricing.
With over $34 billion in global losses reported due to trade disruptions, dealers need to ask: Where is this vehicle being built next year?
EV Progress… and Pressure
EVs got a double dose of momentum and complexity this week. First, EV battery prices dropped 20% in 2024—the biggest decline since 2017—signaling cheaper EVs on the horizon. But most of those gains are happening in China, which still dominates battery tech.
Meanwhile, U.S. manufacturing incentives may be at risk if Trump’s proposed budget passes.
The takeaway? Lower prices are coming, but the benefits may not land evenly across American lots.
VW’s “Massive” U.S. Expansion Plan
Volkswagen says it’s going big in the U.S., though the details are still slim. Ongoing tariff talks have nudged the German automaker toward deeper American roots, and they’re promising major investments across brands.
For dealers, that could mean improved inventory pipelines and pricing stability. But until concrete plans are revealed, we remain cautiously optimistic.
➕ More
We’ve got more, like maybe too much, news and info in our Daily Digest. Check it out!
🥊 Quick Hits
Watching Values with Value Watch
Fact: People are holding onto their cars longer than ever.
When they are ready to trade, purchase, or get service, what's your plan to be choice #1? Hit them over the head every month with your new inventory?
Instead, what if you sent them their car's value, and how it's changing, along with your current service offers, automatically every single month?
That's TradePending's Value Watch. Haven't seen it yet? Check it out.
CULTURE
Why Boomerang Hires Are Back
As economic uncertainty stretches on, both employers and job seekers are rediscovering the value of familiar ground. According to new data, 35% of new hires in March were “boomerang employees”—people rehired by their former companies. This trend is especially strong in industries like tech and media.
For employers, boomerangs bring known performance, cultural alignment, and faster onboarding. For employees, in a job market marked by layoffs and longer searches, a return to a previous employer often feels like the safest move.
As Paul and Kyle discussed on our latest Automotive State of the Union episode, this trend is a reminder that your exit matters. Smart managers are starting to treat resignations as a pause, not a permanent goodbye.
Bottom line? Whether you're hiring or considering your next career move, relationships matter more than ever.
🔁 Today in History
1889 – The first long-distance electric power transmission line in the United States is completed, running 14 miles (23 km) between a generator at Willamette Falls and downtown Portland, Oregon. ⚡️
1924 - The 10 millionth Ford Model T rolled off the assembly line in Highland Park, Michigan, a milestone achievement for the company. 🥳
1965 – The launch of Gemini 4, the first multi-day space mission by a NASA crew. Ed White, a crew member, performs the first American spacewalk. 🚀
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