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Sure, sure-sure, AI could become self-aware tomorrow and decide not to work with us anymore. But possibility does not equal probability, so for now, we should be leading the charge on responsible, effective, and honorable use of AI in automotive.
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- Chris with Paul, Kyle & Kristi
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Activity Is Up, Confidence Is Mixed
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The latest readings from Cox Automotive and Black Book show a market that is still moving, though dealers and consumers alike remain cautious about what comes next.
A few numbers that stood out this week:
Dealer current market sentiment rose to 43, marking a second straight quarterly increase. Franchised dealers climbed into positive territory at 53, while independents remained weaker at 40.
Future expectations dropped sharply from 56 to 47, reflecting concerns around inflation, affordability, fuel costs, and broader economic uncertainty.
Customer traffic improved eight points quarter-over-quarter, rebounding from near-record lows, though still trailing year-ago levels.
Used vehicle wholesale values fell 0.10% last week, according to Black Book, with truck and SUV segments showing the steepest declines at -0.13%.
Auction conversion rates improved to 63%, suggesting buyers are still active, though bidding remains highly selective around mileage, trim, and retail desirability.
Sporty cars continued outperforming much of the market, while compact vans extended one of the industry’s longest depreciation streaks.
The broader theme across both reports is consistency. Dealers are still finding buyers, used inventory continues turning, and pricing has not collapsed. But the market has become more precise. Consumers are payment-conscious, financing remains challenging, and inventory strategy is increasingly determining which vehicles move quickly and which sit.
From Complicated to Approachable
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Big thanks to our friends at Plug for sponsoring the Recharge Lounge at ASOTU CON and helping create a spot where dealers could slow down for a minute, catch up with friends, and recharge between sessions.
What they’re building in the EV space feels a lot like the conversations happening across the industry right now: practical, thoughtful, and focused on helping dealers move forward with more confidence.
From EV trade-ins to sourcing inventory and understanding pricing, Plug is doing the kind of work that helps make a complicated part of the business feel a little more approachable every day.
Europe’s EV Shift and North America’s Supply Chain Bet
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Two stories this week, one from Europe and one from North America, highlighted how quickly the global automotive picture is evolving.
First, Europe continues accelerating toward electrification, and Chinese automakers are gaining ground in the process.
Chinese brands continue expanding in Europe
European registrations rose 7% in April, while electrified vehicles jumped roughly 21% and now account for more than two-thirds of registrations across the region.
BYD registrations surged more than 114% year-over-year, while Chery also expanded rapidly. Tesla posted growth as well, though Chinese brands continue closing the gap quickly as pricing, incentives, and EV adoption reshape the market.
The Gordie Howe bridge could reshape cross-border logistics
Meanwhile, the nearly completed Gordie Howe International Bridge between Detroit and Windsor is positioned to become one of the most important infrastructure projects in North American automotive manufacturing.
The new bridge will relieve pressure from the Ambassador Bridge, which currently handles more than $300 million in goods daily and remains critical to just-in-time production systems across the U.S. and Canada.
Industry leaders continue pointing to the 2022 blockade disruption as proof that relying on a single crossing creates enormous vulnerability for manufacturing and parts distribution.
The bigger question
Both stories ultimately point to the same issue: how much of the industry’s next decade will be shaped not just by vehicles themselves, but by the systems moving them, powering them, and connecting them across borders?
Automaker Watch
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Volvo Opens the Door Wider
Volvo received U.S. approval to continue importing and selling vehicles equipped with connected-car technology despite concerns surrounding its Chinese majority owner, Geely.
The approval came without additional restrictions, immediately boosting investor confidence and calming fears around Volvo’s future U.S. access.
The decision also sparked broader industry conversation. On a recent Automotive State of the Union podcast, hosts suggested the ruling could become an important precedent for Chinese-backed automotive technology entering the U.S. market more broadly, especially if similar systems begin appearing across multiple brands.
BMW Pushes the M3 Into the EV Era
BMW confirmed the current gas-powered G80 M3 is nearing the end of its run ahead of a fully electric replacement expected next year.
The upcoming M3 EV is expected to feature BMW’s next-generation M eDrive architecture, four electric motors, and potentially more than 800 horsepower, showing how aggressively performance brands are trying to preserve enthusiast appeal through electrification.
Honda’s Ridgeline Debate Gets Louder
Honda generated significant discussion this week after reports suggested the Ridgeline could pause production for roughly 18 months before returning with updated styling and a hybrid-assisted V6 setup.
Enthusiast reaction focused heavily on fuel economy and competitiveness. Many owners pointed out that the current Ridgeline no longer delivers a meaningful MPG advantage over some full-size trucks, while others criticized aging styling and interior design.
At the same time, there was clear optimism around a hybrid future. Many commenters believe Honda has an opportunity to reposition the Ridgeline if it can pair Passport-inspired styling with real-world efficiency improvements as hybrid trucks become more common across the segment.
🤖 AI: Your AI agent can now trade for you on Robinhood. And buy stuff with your credit card too
🛒 Retail: Walmart’s Q1 points to rising inflation pressure, faster store-led delivery growth, stronger general merchandise sales, and rapid expansion of its third-party marketplace and fulfillment services.
💰 Economy: America’s “premium economy” trend shows consumers still spending on upgraded experiences, travel, and convenience, even as home ownership and long-term financial goals feel further away.
585 BC – A solar eclipse occurs, as predicted by the Greek philosopher and scientist Thales, while Alyattes is battling Cyaxares in the Battle of the Eclipse, leading to a truce. This is one of the cardinal dates from which other dates can be calculated. It is also the earliest event of which the precise date is known.
1937 – Volkswagen, the German automobile manufacturer, is founded.
2014 – Google announces plans for a self-driving car
Thanks for reading, Friend!
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