🚗 Toyota's "All Electric" Hybrid?

TOGETHER WITH

Good morning, Friend!

We’ve got plenty to read today. And a little to watch.

There is a chance you’ve only recently joined us in the “love people more than cars” parade, and if so, you should know we put our camera where our motto is.

Check out our docu-series, More Than Cars, free on Tubi.

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

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THE NEWS

Rav4, Stellantis Parts, and Gemini

🚙 Toyota’s RAV4 Gets Smarter, Hybrid-Only

The 2026 RAV4 ditches gas-only trims and becomes the launchpad for Toyota’s Arene software platform — a real-time, AI-driven system powering everything from voice assistants to adaptive safety. It’s part of Toyota’s bet on hybrid strength and a new kind of customer connection through smarter tech.

Hybrid demand = higher turn. Plus, Arene gives you a new loyalty hook: updates that keep improving the car after the sale.

🏭 Stellantis Drops $388M on U.S. Parts Hub

Mopar’s future is local. Stellantis is building a massive Detroit-area parts operation to streamline service and buffer against tariff fallout. The goal? Quicker fixes, happier customers, and less downtime.

Fewer headaches in the lane. And maybe fewer "we're waiting on that part" phone calls.

🔌 Honda Hits the Brakes on EV, Doubles Down on Hybrids

Honda’s pulling back on its EV budget by 30% through 2031, pivoting harder into hybrids. Why? The demand’s clearer, and the margins are better (for now).

Fewer EV explainers, more confident hybrid buyers. Simple story, solid product fit.

🧠 Volvo + Google = Gemini in the Dash

Volvo is first to integrate Google’s Gemini AI directly into its cars. Natural conversations, smarter navigation, even in-car manual help — no clunky commands needed.

Volvo keeps stacking the tech-forward narrative. Now your team’s got another reason to pitch the brand to shoppers chasing smart luxury.

➕ More

Want the full breakdown — including how consumers are feeling and why China’s EVs are more friend than foe?

🥊 Quick Hits

• Waffle House (aka America’s watering hole) is adding EV chargers in 2026. 🧇 

• Bitcoin is at a record high. 🎢 

• Target says tariffs pose a threat, but hiking prices is their last resort. An observation that sends me (Chris) right back to middle school. ✂️ 

TOGETHER WITH TRADEPENDING

Why Do Your Neighbors Think of CarMax and Carvana First?

CarMax and Carvana are buying your customers' cars because they're really good at buying your customers’ attention.

Carvana's secret? Aside from big national ad campaigns, their monthly value updates build brand trust long before a trade-in is top-of-mind.

What if your dealership could do the same, but without a million-dollar ad budget?

TECHNOLOGY

🧠 Brains Meet Bottlenecks: What Dealers Need to Know About AI’s Next Chapter

AI might be the hottest thing in tech, but a new wave of insight suggests it’s hitting some speed bumps. Reasoning models — the kind that can problem-solve, not just chat — are facing real limitations in compute power and training complexity. A new study from Epoch AI reveals that progress in these “smarter-than-human” tools could slow down within the next year.

So what’s that mean for retail auto? It means the smart money isn’t on the flashiest AI promises — it’s on tools that pair AI with your team’s real-world know-how. Think call transcription that actually gets context, or ad tech that adapts to live inventory. Companies like Team Velocity, Spyne, and MeasureOne are leading that charge.

Also we have a Prompt of the Week, we dive into how customer objections aren’t roadblocks — they’re trust-building opportunities in disguise.

Want more breakdowns, tools, and straight talk about AI’s role in the dealership?

Subscribe to the full AI email here.

🔁 Today in History

• 1804: The Lewis and Clark Expedition officially begins as the Corps of Discovery departs from St. Charles, Missouri. 🧭 

• 1819: SS Savannah leaves port at Savannah, Georgia, United States, on a voyage to become the first steamship to cross the Atlantic Ocean. ⚓️ 

• 1906: The Wright Brothers receive a flying machine patent.🪁