👑 Toyota Holds The Globe, Tesla’s Promise-Packed Decline, and New B2B Jumps

The Gist

VW is still slashing costs—35,000 jobs weren’t enough, and now they might sell factories to Chinese automakers. Toyota remains the world’s top seller (10.8M vehicles) despite scandals and a rough China market.

Tesla’s earnings? Oof. Sales and margins tanked, Musk promised “cheap Teslas” (again), and he’s now selling solar panels like “your family’s life depends on it.” Meanwhile, Renault is out here playing chess, negotiating Nissan’s Honda merger, dropping a Batmobile-esque EV, and launching electric work vans with Volvo.

New commercial truck sales soared 14.2%, but used sales are slumping as trade-ins dry up. Dealers should double down on B2B—commercial sales could be the next F&I-level goldmine.

Bottom line? Cost cuts, corporate drama, and EV shake-ups are reshaping the industry. Dealers, keep your eyes on fleet sales, new tech, and Tesla’s inevitable next round of discount fire sales. 🚀

🚗 VW’s Never-Ending Cost-Cutting Saga

VW’s accountants are sharpening their pencils yet again. After slashing 35,000 jobs and promising €15 billion in savings, insiders say it’s still not enough. The company is now considering selling underused German factories to Chinese automakers—because why just cut costs when you can sell off assets, too?

• VW’s labor cuts: 35,000 jobs gone by 2030, saving €1.5 billion annually.

• Total planned cost reductions: €15 billion in the medium term, but insiders say it’s not enough.

• Chinese automakers sniffing around VW factories: Selling plants could dodge EU tariffs, but could also hand market share to cheaper EV brands.

• Profitability goals delayed: VW aimed for a 6.5% margin by 2026; now, it’s 3-4 years behind schedule.

• Factories on the chopping block: Osnabrück (T-Roc Convertible ends production in 2027), Dresden (ID.3 assembly stops in 2025), and Audi’s Brussels plant (Q8 E-Tron ends production Feb 28).

What’s the takeaway? VW is in cost-cutting survival mode, trying to stay competitive while balancing union pressure and the Chinese EV invasion. Dealers should keep an eye on how these decisions impact global supply chains and vehicle pricing.

🏆 Toyota Is Still King (Despite Some Drama)

Toyota once again outsold everyone in 2024, moving 10.8 million vehicles and keeping Volkswagen in second place. But don’t let the crown fool you—Toyota took a hit in Japan over governance scandals, and China’s price war didn’t help either.

• Total sales: 10.8 million vehicles (-3.7% YOY).

• Japan struggles: Certification test scandals led to a double-digit drop.

• China competition: Sales down 6.9% as cheaper EVs steal market share.

• Hybrid dominance: Gas-electric hybrids made up 40.8% of parent-brand sales.

• Battery EVs? Still barely a blip: Just 1.4% of Toyota’s total volume.

Take note, dealers—while Toyota keeps racking up sales, the fight for market share in China is brutal, and the push for hybrids (not full EVs) shows where real consumer demand still lies.

🚛 New Electric Truck Factory? Welcome to the ZM Era

ZM Trucks just announced a 210,000-square-foot factory in Fontana, California, set to churn out up to 100,000 electric trucks per year. If you haven’t heard of ZM, you’re not alone—but with ex-Tesla, ex-Fisker, ex-DeLorean CEO Joost de Vries at the helm, they mean business.

• Initial order secured: 900 units heading to 32Group from last year’s ACT Expo.

• Product lineup: Class 3 cargo vans up to Class 8 electric terminal tractors.

• Production starts: First half of 2025.

• California’s EV policy may be shaky, but the math still adds up: Lower total cost of ownership makes EV fleets appealing, regardless of mandates.

Will ZM Trucks make a dent in the industry? Time will tell, but fleet buyers are paying attention.

🔥 Tesla’s Earnings Call: Discounts, Robotaxi Hype, and Elon’s Apocalypse Pitch

Tesla’s Q4 earnings were a rollercoaster: missed revenue targets, price slashing, and Elon Musk selling solar panels with a side of “your family might die” rhetoric. Let’s break it down.

Tesla’s Sales Slump: The Discount Dilemma

• Revenue: $25.71 billion (missed estimates).

• Automotive revenue: $19.8 billion (down from $21.56B).

• Net income: Down 71% YOY.

• Operating margin: 6.2% (down from 10.8% in Q3—yikes).

The ‘Cheaper Tesla’ Promise (Again, Again, and Again)
Elon is back on his affordable Tesla nonsense.

• No price, no specs, no timeline.

• Just “it’ll use existing parts, we swear.”

Robotaxi Fantasy
Musk promised Tesla’s first “unsupervised” robotaxi service will launch in Austin this June.

• Regulators? Unimpressed.

• Details? None.

• Existing FSD? Still requires a human driver.

The Real Head-Scratcher: The Solar Apocalypse Pitch
Musk: “Buy Tesla solar panels, or your family’s life might depend on it.”

• This, from the guy who backed a policy-freezing administration that’s making solar adoption harder.

• Fear-based marketing or genuine energy concern? You decide.

What This Means for Dealers
Tesla’s sales tactics—price slashing, future tech distractions, and Muskian melodrama—are showing cracks. While a budget Tesla could be a headache for entry-level segments, traditional dealers still win on service, customer experience, and margins.

⚔️ Renault’s Three-Front Battle: Mergers, EV Vans, and Sci-Fi Cars

Renault is making moves—big ones. Whether it’s flexing its Nissan stake, rolling out futuristic EVs, or dropping electric work vans, the French automaker is playing the long game.

Nissan-Honda Merger: Renault’s Power Play

• Nissan and Honda are negotiating a merger to create a 7.4-million-unit-per-year automaker.

• Renault still holds 36% of Nissan and wants a higher buyout price before Honda takes control.

• A final merger deal is expected by June 2025.

Renault’s Filante: The EV That Skipped Leg Day

• Just 2,200 lbs, half of which is battery.

• Steer-by-wire, brake-by-wire—no physical controls.

• Looks like a Batmobile designed by Apple.

Renault + Volvo’s Flexis Vans: Electric Workhorses

• 800V charging: 20 minutes to 80% charge.

• Step-In, Panel Van, and Cargo Van models targeting last-mile delivery.

• Production starts at Renault’s Sandouville plant.

What’s the Play?
Renault is pulling a grandmaster strategy, juggling stake negotiations, experimental EVs, and fleet-focused electric vans. If this pays off, the impact on commercial vehicle markets and global partnerships could be massive.

🏢 Used Commercial Trucks Are Struggling, But New Sales Are Booming

If you’re in the commercial truck business, look alive—new sales are soaring, but used sales are slumping.

• New commercial vehicle sales: +14.2% YOY, with a 19.4% jump in Q4.

• Used commercial sales: Down 2.6%, with higher mileage and longer days to turn.

• New vehicle supply: Up 33%, thanks to supply chain improvements.

• Longer days to turn? +62.9% YOY, despite demand.

What’s This Mean for Dealers?

• New trucks are moving, but used inventory is tightening due to a lack of trade-ins.

• Now is the time to embrace digital tools and B2B sales strategies.

• Commercial sales could be the next F&I-level profit center for dealers who get ahead of the curve.

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