🚗 Union Talks Spark

TOGETHER WITH

Many people, including members of our community, are suffering due to the wildfires in California. We’ve seen how this industry steps up to support one another and are eager to help spread the word.

If you are affected, making plans to help, or know of help people may not be aware of yet, let us know, and we will do what we can to share it through our channels.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

🔋 Union Sparks, Scout's 50K, and Hyundai VS Toyota

🔋 Union Sparks in the South

BlueOval SK workers in Kentucky are rallying to join the UAW, citing safety concerns like hazardous chemicals and inadequate protective gear. With management hiring anti-union consultants and workers inspired by similar UAW wins in Ohio and Tennessee, this is shaping up to be a critical test for organized labor in the South—and a potential turning point for the EV industry.

🚙 Scout Motors: Nostalgia Meets Reality

Volkswagen’s revived Scout Motors has drawn over 50,000 reservations for its electric SUVs and pickups. But with $100 refundable deposits and 2027 delivery dates, there’s no guarantee nostalgia will translate into sales. VW hopes Scout will help boost its U.S. market share above 4%, but the clock is ticking as competitors speed ahead.

⚡ Hyundai’s IONIQ 5: EV Value Champion

Hyundai’s 2025 IONIQ 5 offers up to $16,000 in discounts, bringing its price below $28,000—less than a Toyota RAV4. With up to 318 miles of range and new tech features, Hyundai is making EV adoption more accessible while raising the stakes for competitors.

Read the Full Digest

Get the full scoop on these stories and more. Dive into the latest trends shaping the auto industry—read here!

TOGETHER WITH UPSTART

Ready to sell more cars in 2025?

Upstart’s new, enhanced Showroom and Auto Financing solutions help dealerships like yours move more metal and boost profitability—delivering up to 50% higher back-end gross.

Upstart’s connected solution for both online and in-store helps you:

• Increase showroom traffic

• Hold higher gross

• Desk deals in half the time - and close more profitable deals

Want to see it in action? Stop by Booth #2119 and #2127 at NADA to learn how Upstart can help you start the selling year strong.

Plus, when you book a demo ahead of time, you'll score a free engraved luggage tag and AirTag.

Watch the video & learn more here

DATA & INSIGHT

📈 Still Charging Ahead, Just Not Full Speed

After two years of big returns, 2025 is shaping up to be more balanced, with less reliance on expanding valuations and more on actual earnings growth.

• Year Three of the Bull: Historically speaking, bull markets don’t end without a major external shock, a Fed rate hike cycle, or a recession—none of which seem imminent. Moderate gains are expected, but at a slower pace than in 2024.

• Earnings-Driven Returns: With valuations already elevated, further growth will hinge on S&P 500 profits rising 10% to 15%. The lower end of this range reflects current expectations, while the higher end assumes policy changes like corporate tax cuts.

• Policy Uncertainty: While pro-growth policies could boost returns, uncertainty around tariffs and other fiscal measures may create short-term volatility.

The bond market is flashing a big warning: if deficits keep climbing, it’s going to get expensive.

Despite the Fed cutting rates several times, longer-term borrowing costs are heading up, which means it won’t be as easy for policymakers to roll out big tax cuts or spending plans.

• Rising Rates: The yield on 10-year Treasury notes jumped to 4.71%, up from 3.62% in mid-September. This shows investors are getting nervous about high deficits.

• Long-Term Bonds: The extra risk of buying long-term debt has investors demanding higher returns, which is why rates are climbing even though inflation isn’t driving it.

• Brace for More: Futures markets show traders aren’t ruling out rates going above 5%, meaning investors are on edge about what might happen next.

Consumer sentiment has seen a small decline after a six-month streak of steady improvement in the second half of 2024.

• Sentiment Slips: The consumer sentiment index dropped 0.1% week over week, leaving it down 0.3% so far in January after a 0.1% gain in December.

• Mixed Lead Activity: Leads on Autotrader and Kelley Blue Book are up YOY and higher than December, while unique leads per dealer on Dealer.com are down year over year and month over month.

AROUND THE ASOTU-VERSE

🗓️ Coming Soon

⚜️ January 23-26th — NADA Show in New Orleans. Find the all best parties here!

📝 January 30th— Public Policy Day with WANADA and the Washington, D.C. Auto Show.

🦀 May 13-16th— ASOTU CON in Baltimore, Maryland.

🥊 Quick Hits

• New Yorkers are experiencing lighter traffic as congestion pricing takes effect. 🍎

• U.S. private payrolls growth slows in December. 🐌 

• Disney spilled the beans on some of it’s user preferences. 🐭 

🔁 Today in History

• 1901: Oil discovered at Spindletop Hill marking the start of the Texas oil boom. 🛢️

• 1943: FDR leaves for Casablanca, Morocco becoming the first U.S. President to visit a foreign country in wartime. 🇲🇦

• 1999: The Sopranos starring James Gandolfini as mobster Tony Soprano, debuts on HBO. 📺