TOGETHER WITH:
Howdy, Fam!
GM just raised its guidance for the second time this year, and its own CEO isn't spinning the EV write-downs as an excuse.
Strong truck and SUV margins, a broader Cadillac lineup hedging both directions, and a real plan to cut tariff exposure all point toward genuine confidence heading into H2. We break down exactly what that means if you're a GM dealer.
Also in today's email:
Why independent shops losing the tech race isn't a permanent win for your service department
The department store shopping app that's got us thinking about what automotive retail could look like
A Ford dealer group's 25-year tradition worth celebrating
Keep Pushing Back,
—Chris with Paul, Kyle & Kristi
Reading time: 4 mins
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GM Raised Guidance Again. Its Own CEO Says That's Not an Excuse.
GM's North American profits jumped 43% to $3.45 billion, and the company raised its full-year guidance for the second time this year, now $14-16 billion.
We haven't made excuses, we've just continued to perform.
Want the full conversation?
🎙️ Listen to today's Automotive State of the Union episode for the complete discussion, additional context, and the conversations that shaped our perspective.
The Write-Downs Are Real. So Is the Profit.
Net income still fell 31% after another $2.3 billion EV realignment charge, roughly $11 billion in total EV-related costs over the past year, the same posture Ford has taken with its own EV losses. Adding to that recalibration: Cadillac, which planned to go all-electric by decade's end, will launch new gas-powered CT5, XT5, and XT6 versions next spring alongside its EV lineup.
What This Means for Your Store
Strong truck and SUV margins, a broader Cadillac lineup hedging both directions, and a clear U.S. production plan to reduce tariff exposure all point toward real confidence heading into H2.
The IQ Advantage
A lead is only useful if you understand what the shopper is trying to solve.
The IQ Advantage brings together tradeIQ, paymentsIQ, and offerIQ to give customers clearer answers online—and your team better context when they enter the CRM.
That means more relevant conversations, fewer unnecessary steps, and a smoother path toward the deal.
Independent Shops Are Losing the Tech Race. Dealers Shouldn't Get Too Comfortable About It.
The Real Cost of Staying Current
The Numbers
Tesla diagnostic subscription: $3,188/year
Ford: $2,500/year, GM: $1,200/year
Alignment equipment: ~$70,000, plus ~$30,000 in calibration targets per automaker
A basic wheel alignment that took 90 minutes a decade ago now regularly takes three to four hours, sometimes up to nine, because of ADAS sensor and camera calibration requirements.
Paul and Kyle's Take
Don't take this as a victory lap. Technology costs are already coming down, and newer OEMs are increasingly publishing open diagnostic documentation the way Tesla does. Independent shops still make up the vast majority of the aftermarket. This is a two-to-three-year window of opportunity, not a permanent shift.
What This Means for Your Store
Capture the service customers who'd otherwise have gone independent now, but build your fixed-ops strategy around a real timeline, not an assumption that this advantage lasts indefinitely.
A Department Store Built a Shopping App Nobody Needed. Then 470,000 People Joined It Anyway.
South Korean retailer The Hyundai built a digital platform around discovery and entertainment instead of speed and price, generating a 43.5% jump in merchandise value in nine weeks.
Our take: the automotive version of this gets built by a third party, not an OEM, closer to Shopify's Shop app than anything currently in this industry.
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The U.S. Is Racing to Purge Chinese Tech From Cars. One Bill Might Accidentally Ban Mercedes-Benz.
New federal rules bar Chinese connectivity software from 2027 models and hardware from 2030, and one Ohio supplier is scaling from 140 to a planned 1,000 employees just to fill the gap, though shifting away from Chinese parts still costs 5-15% more.
Meanwhile, a Senate Commerce Committee bill meant to lock out Chinese automakers could bar Mercedes-Benz too, since it carries nearly 20% Chinese ownership. Committee chair Ted Cruz says the bill needs changes before becoming law.
🚘 Car Stuff
Dodge sold out dealer orders for its $50K Durango R/T 392 Hemi in just six hours, the nameplate's best first-half sales since 2006, proof performance SUVs still have real demand even as gas prices climb.
Hertz is repositioning itself as robotaxi infrastructure, managing Uber's incoming Lucid-Nuro fleet in San Francisco and leaning on 11,000 existing locations most competitors would need decades to replicate.
🚗 More Than Cars Stuff
Rochester Area Ford Dealers are marking 25 years of their Friendship Express program, donating another new Ford van this year to a local nonprofit in need of reliable transportation. Since 2001, the program has helped organizations across five counties keep their missions moving, literally. Love people more than you love cars, and this is what that looks like in practice.
1886: New York saloonkeeper Steve Brodie claimed to have survived a daredevil plunge off the Brooklyn Bridge into the East River, a stunt many still doubt actually happened.
1962: The Telstar 1 satellite carried out the first-ever live television transmission across the Atlantic, connecting audiences in the U.S. and Europe in real time.
1999: Space Shuttle Columbia launched with Eileen Collins as commander, making her the first woman to command a U.S. space mission.
Thanks for reading, Friend!
