TOGETHER WITH:
Howdy, Fam!
Today’s lead story is about AI, but not the chatbot kind.
The kind that needs chips to work. Chips that the auto industry just a few years ago couldn’t get enough of.
It may be time to dust off our inventory shortage playbook again.
Keep Pushing Back,
—Paul, Kyle, Chris & Kristi
Reading time: 4 mins
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AI’s Chip Boom Is Becoming the Auto Industry’s Problem
Why This Is Different
The next chip shortage may not look like the last one.
As AI companies race to build bigger data centers, automakers are finding themselves in direct competition for the memory chips that power modern vehicles. According to Automotive News, DRAM spot prices jumped roughly 450% from September 2025 to January 2026. Honda, GM, and Ford have already pointed to semiconductor and DRAM pressure as part of hundreds of millions in added costs.
The Pushback
Online, the reaction has been split. In one Reddit thread, the most popular response to the idea of a new AI-driven car chip shortage was simply: “Likely false.”
The argument was that most vehicle chips use older technology, not the advanced chips AI companies need.
The Dealer Read
But that misses the part dealers should watch. This is less about basic vehicle control modules and more about the memory needed for infotainment, ADAS, over-the-air updates, autonomy, and software-defined vehicles.
As Paul and Kyle pointed out this morning, more technology means more data, more storage, more energy, and more cost. That could widen the gap between tech-heavy vehicles and simpler, value-focused options.
Why Dealers Should Care
The opportunity here is to help customers understand the trade-off: more features may increasingly mean higher cost.
Connecting Sales, Service, and Retention
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Marketing works best when every part of the dealership is pulling in the same direction. That's the idea behind Force Marketing's full-lifecycle approach to automotive retail.
Trusted by more than 1,200 dealerships and certified by many of the industry's leading OEMs, Force combines audience targeting, streaming media, paid search, fixed ops marketing, and retention tools to help dealers connect with customers from first click to long-term loyalty.
Whether you're focused on sales, service, or both, Force is built to help dealers turn marketing from a collection of tactics into a measurable growth engine.
Check them out here.
The Used Market Is Stable, but Buyers Are Selective
Black Book reports wholesale values declined just 0.19% last week, with cars down 0.08% and trucks down 0.23%. Luxury and near-luxury cars continued to outperform, while mainstream truck and SUV segments faced more pressure.
The bigger takeaway is buyer behavior. Auction participation remains healthy, but dealers are being disciplined.
Desirable inventory still attracts strong bidding, while average units are taking longer to find a home. In today's market, condition, segment appeal, and retail demand are carrying more weight than mileage alone.
Building Tomorrow's Technician Pipeline Today
Carvana and the Jimmie Johnson Foundation launched Driving Brighter Futures, a grant program that helps K-12 schools fund automotive and engineering education through equipment, tools, and training vehicles.
The program reinforces a reality dealers already know: technician shortages are not solved at hiring time.
The strongest talent pipelines are built years earlier through school partnerships, internships, mentorships, and community involvement.
The stores investing in future technicians today will have an advantage tomorrow.
Subaru Bets on Flexibility Instead of Predictions
Subaru is launching mixed production lines capable of building EVs, hybrids, and gasoline vehicles on the same assembly line, part of what it calls an "ultra-efficient production" strategy.
The move follows a $362 million write-down tied to delayed EV programs and reflects a broader shift happening across the industry.
Rather than betting heavily on a single powertrain, automakers are investing in flexibility. As demand remains uncertain, the ability to quickly adjust production may become more valuable than accurately predicting which powertrain wins.
🚘 Car Stuff
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Nissan pauses electric Qashqai plans. Reuters reports Nissan has shelved development of an all-electric Qashqai as it cuts costs and reassesses EV demand in Europe.
Canadian production falls while U.S. factories gain ground. Through April, Canadian vehicle production dropped by roughly 64,000 units year-over-year while U.S. production increased by about 44,000 units.
Chinese automakers are finding a new path into Europe. Bloomberg reports brands including Chery, BYD, Leapmotor, and Dongfeng are increasingly partnering with or utilizing underused European factories.
🤖 AI Stuff
Consumers are using AI search more but trusting it less. A new study found AI search adoption continues to climb, yet confidence in AI-generated results has fallen sharply over the past year.
Tech stocks stumble as AI spending questions emerge. Semiconductor and technology stocks fell this week as investors weighed higher interest rates and growing questions around AI infrastructure spending.
AI's best role may be helping experts see what they can't. Researchers at NewYork-Presbyterian used an AI tool to review routine heart scans and identify severe cardiac damage that clinicians initially missed, ultimately leading to a life-saving diagnosis. The technology is now being rolled out nationally through a physician platform used by roughly half of U.S. doctors.
📀 Weird Stuff
Photo by: Montana Highway Patrol/Facebook
World Cup sticker shock. Fans attending the 2026 World Cup are discovering that stadium concessions can rival ticket prices, with beers topping $20 in some venues and Miami offering a $75 caviar-topped order of "Fancy AF Tots."
The world needs more whimsy. One Michigan man sold most of his belongings and now travels full-time in a 23-foot banana-shaped vehicle built on a Ford F-150 chassis.
Detroit built giant robot gladiators. A sold-out attraction called Robowar is drawing crowds to watch nine-foot-tall steel combatants fire exploding projectiles inside custom mech suits.
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