TOGETHER WITH:
Howdy, Fam!
Two years of quiet planning, one federal ban, and a $25 million lawsuit later, a New Jersey dealer group is asking a question no franchise agreement was really built to answer.
If a government ban forces an automaker's exit, does that count as a clean walk-away, or is a court about to decide it was the excuse a manufacturer wanted all along?
Also in today's email:
Sonic's real used-car advantage isn't the price tag, it's where the inventory is actually coming from
Detroit wants tariff relief while Washington wants more American content, and both sides are dug in
Uber's million-drone-a-day bet, Hyundai's AI rollout numbers, and a battery maker's carbon-neutral claim worth a second look
Keep Pushing Back,
—Chris with Paul, Kyle & Kristi
Reading time: 4 mins
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A Dealer Is Testing What an Automaker Owes You When the Government Shows It the Door
The Timeline
Two years ago: Prestige Imports alleges Polestar began quietly planning its U.S. exit.
June 2026: The federal government bars Polestar from U.S. sales beyond the 2026 model year, citing its ownership by China's Geely.
Shortly after: Polestar sends a force majeure letter to Prestige Imports, one of 32 U.S. retailers.
Aug. 12: Prestige files a $25 million lawsuit in New Jersey.
Prestige alleges the notice functioned as a constructive termination without the 60-day notice New Jersey franchise law requires. The detail that stings most: Volvo, also Geely-owned, pursued and received an exemption. Prestige claims Polestar never tried.
Polestar was screwed by Polestar. It wasn't screwed by the U.S. government.
What This Means for Your Store
If your franchise brand has foreign ownership ties under any regulatory scrutiny, this case is worth watching. It's the first real test of whether "the government made us do it" holds up as a clean exit.
Check out the full conversation with Paul and Kyle
Your Data Has Answers. It's Just Never Been Asked.
If data ownership, freedom, and coordination are what you're looking for, here's the solution: Foureyes Connect.
It lets you put your unified customer and inventory data to work anywhere you need it — any tool, system, and partner you want. And never locks it in.
It also centralizes your customer opt-outs across the vendors talking to your customers.
Most can't do either.
Foureyes Connect is a different kind of data platform that does both for dealers.
Sonic's Real Edge Isn't Price. It's Where the Cars Are Coming From.
Sonic's non-auction sourcing at EchoPark climbed from 32% to 42% in one quarter, more inventory coming directly from private sellers instead of the wholesale lane.
Consider this today
As Kyle put it, "this is not just a Carvana CarMax play." The customers Sonic is chasing are sitting in driveways near your own store right now, not waiting for a better auction price, just waiting for someone to ask. Worth a look at how much of your own used inventory still depends on the lane versus showing up on your own doorstep.
Detroit Wants Tariff Relief. Washington Wants More American Content. Somebody's Not Getting What They Want.
Ford, GM, and Stellantis are lobbying against proposed USMCA rules requiring 50% U.S.-made content, warning it could add $2 billion in annual costs per company, even as foreign rivals face a flatter 15% tariff.
Meanwhile, China's automakers are flooding overseas markets with excess product their own consumers won't buy. Same trade war, opposite pressure.
Uber and Zipline Are Betting on a Million Drone Deliveries a Day
Uber is investing in drone delivery company Zipline, targeting one million Uber Eats drone deliveries daily by 2029, starting in Houston and Dallas this year. Amazon, Google's Wing, and Uber are all racing toward the same last-mile future, worth watching for what it eventually means for parts delivery and service logistics.
Hyundai's AI Rollout Hit 80% Adoption in a Year.
Here's What It Actually Bought Them:
90% reduction in crash test analysis time
42% faster overseas service diagnosis
$3.9 million in annual savings from one vision-AI system alone
86% less unnecessary production downtime
Customer review response time down from 35 minutes to 5
🚘 Car Stuff
Japanese automakers Toyota, Honda, and Nissan face a squeeze from both a potential yen rally and ongoing Iran war disruptions, after riding a weak currency to strong recent earnings.
GM is expanding free EV charging at Chevrolet dealerships across Peru, where plug-in vehicle sales grew 86% in the first half of the year.
CATL, the world's largest EV battery maker, certified all 20 of its plants carbon neutral, though it admits over 80% of a battery's lifecycle emissions still come from its supply chain.
Used-vehicle inventory edged up slightly in July to 2.15 million units, but vehicles under $15,000 remain scarce, carrying just 32 days' supply against a 46-day market average.
💰 Not Car Stuff
Nvidia is backing up to $105 billion in financing for a massive OpenAI data center project in Ohio, with CEO Jensen Huang calling it part of a $600 billion compute opportunity, not "circular financing" as some critics have suggested.
Buc-ee's opened its first Arkansas location, part of a six-state expansion push for the beloved travel-center chain known for enormous stores, spotless bathrooms, and a cult following that treats road trips as an excuse to stop there.
A space industry CEO says humans will be living and working on the moon by the 2030s, echoing predictions from Elon Musk, Sam Altman, and Jeff Bezos about a coming lunar workforce as commercial space ventures accelerate.
1937: The Toyota Motor Company, Ltd. was established as a spinoff of Toyota Automatic Loom Works, eventually growing into Japan's largest automaker.
1920: The 19th Amendment was ratified after Tennessee became the deciding 36th state, securing women's right to vote nationwide.
1877: American astronomer Asaph Hall discovered Phobos, one of Mars's two moons, just days after discovering its counterpart, Deimos.
