TOGETHER WITH :
Howdy Fam!
ICYMI, we are having an AutoIndustry.AI Summit the day before ASOTU CON this year. Participants will connect around the rapidly developing tools and content that make AI more than a Google search replacement to start bringing in actual deals.
Check out this session on vibe coding and prompting, and make a plan to join us in Hanover in just under 3 weeks!
Keep Pushing Back,
-Chris with Paul, Kyle & Kristi
Reading time: 4 mins
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Wholesale data shows steady pricing, selective buyers, and margin pressure at retail
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Wholesale pricing continued its spring climb, with cars up +0.15% and trucks/SUVs up +0.17% last week. The pace slowed slightly, but the direction remains consistent.
What stands out more is how buyers are behaving. Conversion rates dipped to 62%, and outcomes are now closely tied to the specifics of each unit. Late-model SUVs still lead demand, but buyers are less willing to stretch on anything that misses.
The market is still moving. It is just less forgiving.
Segment performance reflects that divide:
Mid-size cars: gains in 10 of the past 12 weeks
Luxury cars: declines in 9 of the past 12 weeks
Compact crossovers: still rising, but gains are cooling
Small pickups: slipped after a long run of increases
Demand is still present, supported in part by tax refunds and credit access:
$242B in tax refunds returned so far, up ~15% YoY
Credit availability at its strongest level since mid-2022
But the structure underneath that demand is shifting:
Subprime share is rising
Negative equity hit another record
Loan terms remain extended
Defaults rose to 3.79%, highest since 2010
More deals are getting done, but the deals themselves are carrying more risk.
That pressure is showing up inside the dealership:
Net pretax profit: down 11.2% YoY (Q1)
Gross profit per new unit: $1,781
Gross profit per used unit: $1,253
F&I income per unit: $1,727 (up)
Fixed ops: 53.8% of total gross profit
Front-end margin is tightening. The rest of the store is carrying more weight.
Volkswagen plans to cut another one million units of capacity
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Volkswagen is preparing to reduce global production capacity by another one million vehicles, bringing planned output closer to 9 million units annually.
The move reflects a continued adjustment to uneven demand across global markets, even as the company continues investing in new products.
This is not about pulling back. It is about lining up supply with reality.
For dealers, it reinforces a familiar theme: production is still being recalibrated, and supply will not simply return to prior norms on its own.
Tesla promises Roadster unveil after years of delays
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Tesla says it will unveil its next-generation Roadster by the end of April, nearly nine years after the original concept was introduced.
The timeline has shifted repeatedly, with production now expected between 2027 and 2028.
Key points from the latest update:
Original reveal: 2017
Multiple delays pushed production out several years
Latest claim: unveil in late April 2026
Current production target: 2027–2028
Performance claims have expanded over time, including sub-one-second acceleration targets and more experimental features.
The headlines stay fresh. The timeline keeps moving.
For now, the Roadster remains more about attention than impact on today’s retail market.
TODAY @ 2:00pm EDT
Every card swipe in your service lane has a cost attached to it. Most dealers haven’t actually mapped it out.
This afternoon, Randy Modos and Don Andres are going to walk through how dealers are reducing processing costs, structuring surcharge programs correctly, and cleaning up payment workflows without slowing down the customer experience.
You’ll leave knowing exactly where to look and what to adjust.
Chinese EVs gain attention in the US through social media
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Chinese EV brands are gaining traction with US consumers, even without broad availability in the market.
A Bloomberg report highlights how platforms like YouTube and TikTok are driving awareness for brands such as:
BYD
Xiaomi
Zeekr
Chery
Content featuring these vehicles, often focused on design, technology, and price, is generating strong engagement. In some cases, videos are reaching millions of views.
Consumers are forming opinions before they ever see these cars on a lot.
While regulatory barriers remain, exposure alone is shaping expectations around:
Price
Features
Overall value
FTC pushes clearer pricing rules and introduces peer enforcement dynamic
The FTC is tightening expectations around advertised pricing, with a clear direction: the price shown should be the price a customer can actually pay.
Core guidance includes:
If it is not a government fee, it should be included in the advertised price
Finance and lease disclosure rules still apply
Federal interpretation overrides conflicting state guidance
The bigger shift is how enforcement may work. Dealers are being encouraged to report competitors who are not complying.
This changes the tone from oversight to participation.
Industry reaction is split:
Some see a more level playing field for transparent dealers
Others question how it works across different states, incentives, and deal structures
Without a standardized format, consistency remains an open question.
Clarity in rules does not always mean clarity in execution.
May 12: AutoIndustry.AI Summit
May 13-15: ASOTU CON 2026—get ready for the Year of the Human
1889 – At noon, thousands rush to claim land in the Land Rush of 1889. Within hours the cities of Oklahoma City and Guthrie are formed with populations of at least 10,000.
1970 – The first Earth Day is celebrated.
1977 – Optical fiber is first used to carry live telephone traffic.
Thanks for reading, Friend!
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