🚗 The Tariff Truce

🚙 Damon Lester @ NADA and Automaker Performance Data

February 05, 2025

The thing about an early morning email is that it has almost no way of guessing how your day is going to go.

We know a few things: Folks are looking for cars, folks are looking for service, and trust is a huge deciding factor in where they look.

So, while the news, the industry, and sometimes the ground under our feet seem to dance around in unpredictable jolts, people are looking for something solid to trust — and there you are!

We hope our written and live-streamed work keeps you caught up and helps you stand firm.

Keep Pushing Back,
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BUSINESS

🐾 Tariffs Pause, Ford in Canada, and Brand-by-Brand Data

🪖 Tariff Delay Buys Time, But Not Certainty

The auto industry dodged an immediate tariff hit, as the U.S. postponed new levies for 30 days after Canada and Mexico struck border security deals. Canada is spending $1.3 billion, Mexico is sending 10,000 troops, and everyone gets a temporary breather.

The bad news? A 10% tariff on Chinese imports is still happening, meaning higher parts costs and potential price hikes of $1,000 to $9,000 per vehicle. Historically, tariff impacts take six months to hit consumer pricing—just in time for summer sales.

The bottom line? The reprieve is temporary. March could change everything.

⚡ Ford’s EV Strategy: Two Moves, One Message

Ford is betting on Extended Range Electric Vehicles (EREVs)—EVs with a gas-powered generator for extra range. Expect EREV versions of top models within two years, but also expect confusion as dealers and buyers adjust to yet another drivetrain option.

Meanwhile, Ford is offering free home chargers + installation in Canada for Mach-E, Lightning, and E-Transit buyers—tackling one of EV adoption’s biggest pain points.

For U.S. dealers? If the Canada experiment works, expect Ford to roll out similar incentives stateside.

📊 Automaker Report: Winners & Losers

Kia: The K4 sedan outsold SUVs, proving cheap sedans still have life.
Tesla: California sales down 12%, stock down 5%, and 10,000 unsold Cybertrucks suggest cooling demand.
Lucid: Sales up 51%, but Gravity SUV only moved 50 units—hype or long-term success?
Volvo: Sales slipped 5%, but EVs and hybrids grew 17%, now 44% of total sales.
Ferrari: Luxury is unstoppable—profits surged 21% to €1.53B as wealthy buyers keep spending.

Dig into these and more stories in our daily digest.

TOGETHER WITH BELAY

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MORE THAN CARS MOMENTS

Damon Lester at the NADA Show

Damon Lester took the stage at NADA 2025 with a clear message—minority dealers are making strides, but the fight for representation isn’t over. As Chairman of NAMAD (The National Association of Minority Automobile Dealers) and a Nissan dealer himself, Lester broke down the numbers and made it clear why representation in automotive retail matters.

“Out of 19,000 new car dealerships, only about 1,300—7%—are minority-owned,” he said, reinforcing NAMAD’s mission to increase those numbers. But with DEI programs quietly being rolled back across industries, he posed a tough question: “If those companies originally felt that that was important as part of their business imperative, why change it now?”

He also highlighted the economic power of minority consumers: “41% of all new cars and trucks are purchased by an ethnic minority,” Lester pointed out, saying that it’s a market that dealers cannot afford to ignore.

At a time when consolidation and economic pressures are squeezing smaller dealerships, Lester is fighting to ensure minority dealers don’t get left behind. “We’re not taking away anything—we’re just trying to add,” he said. “We’re adding opportunities and access for families.”

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

Waffle House is tacking on an egg surcharge due to shortages. 🍳
A new study finds that the average teen is spending nearly a quarter of the school day on their phone.📱
Super Bowl ticket prices are down by thousands compared to last year. 🏈

🔁 Today in History

1870: The first motion picture is shown to a theater audience. 🎥
1900: The United States and the United Kingdom sign a treaty for the Panama Canal. 🚢
1921: The Yankees purchase twenty acres in the Bronx to build the Yankee Stadium. ⚾️

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