🚗 Nissan + Honda = Never Mind

TOGETHER WITH

Deep Thought Thursday,

Pain is a lot of things. Sometimes, it’s a sign of growth and a necessary discomfort.

But other times, it is a sign something isn’t working right and could break at any moment.

Like in so many things, context is important. Hurting at the gym is good (to a point), but hurting in your ego is a sign that you may need to sit the little guy down and talk about realistic expectations.

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

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BUSINESS

💔 Nissan's Missed Merger, Cox on Tariffs, and Toyota's Profit Projection

💔 Nissan’s $60B Breakup: No Merger, No Problem?

Nissan and Honda were supposed to form the world’s third-largest automaker, but Nissan balked when Honda wanted to make it a subsidiary instead of an equal partner. Now, Honda’s stock is up 8%, Nissan’s is down 4%, and Nissan is left trying to cut 9,000 jobs and 20% of its global capacity while battling EV competition. Mitsubishi, which was considering joining the merger, might now back out too. With tariffs looming and EV shifts accelerating, Nissan needs a new game plan—fast.

🚨 Tariff Threats Could Crush Car Affordability

Cox Automotive warns that a 25% tariff on Canadian and Mexican goods could hike vehicle prices by $5,855 on average, making 40% of vehicles under $40K significantly more expensive. Half of the 50 best-selling models in the U.S. would be directly impacted, and auto repair costs would rise due to parts shortages. With $309B in trade at risk, automakers and dealers are bracing for higher costs, smaller margins, and a potential affordability crisis if these tariffs hit.

🚗 Toyota’s Profits Rise, But Challenges Remain

Toyota raised its full-year profit forecast by 9% to $30.7B, thanks to hybrid demand, pricing control, and a weak yen. But quarterly earnings fell 28%, with North America down 63% due to slowing sales and rising labor costs. Meanwhile, Toyota is investing $14B in a North Carolina battery plant, set to power 400,000+ EVs per year by 2030. Toyota may have been slow on EVs, but with hybrids still leading sales and a massive U.S. production ramp-up, they’re betting big on a mixed-power future.

Read more on this and several other stories in our daily digest.

TOGETHER WITH DAVE CANTIN GROUP

On Par With DCG

The Dave Cantin Group (DCG) just announced their first athlete sponsorship, partnering with PGA Tour pro Quade Cummins. For DCG, it’s a natural fit—Quade grew up in a dealership family, where he learned the same discipline and strategy that now define his golf career.

Beyond the fairway, DCG continues to equip dealers with the insights they need to navigate an evolving market. Their Market Outlook Report (MOR) offers a clear, data-driven look at industry trends, helping dealers make informed decisions about growth, M&A, and performance.

If you’re looking for a thoughtful, well-researched perspective on what’s ahead, the latest MOR is worth a read.

DATA & INSIGHT

🇨🇳 China's Auto Dominance: A Global Challenge

31M vehicles a year. Factories running at breakneck speed. EV battery dominance. China isn’t just building more cars—it’s outproducing, outpacing, and outpricing the rest of the world.

And yet, many in the U.S. still aren’t paying attention.

At NADA Show 2025, Michael Dunne delivered a wake-up call: China’s automakers aren’t in America yet, but they’re coming—and they’re not playing for second place.

With brands like BYD, Geely, and Chery making massive gains in Mexico, South America, and Europe, the writing is on the wall. They’re already winning everywhere else; what happens when they find a way here?

Dealers and industry leaders need to do their homework, understand the competition, and prepare for what’s coming. Because when it does, it won’t be business as usual.

Read the full breakdown here.

AROUND THE ASOTU-VERSE

🗓️ Coming Soon

• 🍁 February 12-17th — 2025 Canadian International AutoShow in Toronto.

• 🦀 May 13-16th — ASOTU CON in Baltimore, Maryland. Get the app!

🥊 Quick Hits: Movies, AI, and Parkinson’s

• Disney is making big bucks on streaming. 🤑 

• Google owner, Alphabet shares fall more than 8% on revenue miss and expensive AI investments. 🤖 

• The U.S. approves "milestone" Parkinson's treatment for 2025 release. 💊 

🔁 Today in History: Mercedes, Chips, and Planes

• 1954: Mercedes 300SL goes on sale. 🏎️ 

• 1959: Jack Kilby of Texas Instruments files the first patent for an integrated circuit (aka microchips). 🖥️ 

• 1998: Washington National Airport is renamed Ronald Reagan National Airport. ✈️