TOGETHER WITH:
Howdy, Fam!
Today we're separating the headlines from the opportunities.
From trade policy and hybrid demand to OEM partnerships and the service lane, we're looking at what's changing, why it matters for dealers, and where you can respond instead of simply react.
Also in today's email:
The next USMCA chapter and what it could mean for inventory planning.
Why shoppers continue rewarding flexibility.
One part of your dealership that's becoming more visible every day.
Keep Pushing Back,
—Chris with Paul, Kyle & Kristi
Reading time: 4 mins
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USMCA Just Entered a New Chapter
The next negotiation may shape inventory long before the next model year
The U.S. officially declined to extend the USMCA trade agreement, kicking off an annual review process that could eventually reshape how vehicles and parts move across North America.
For dealers, nothing changes overnight. But manufacturers are already preparing for the possibility of stricter North American sourcing requirements and more U.S.-specific content. Those changes could influence future product mix, production costs, and pricing.
Trade policy doesn't stay in Washington. Eventually it shows up in inventory, pricing, and the vehicles your customers can buy.
It's worth watching how your OEM talks about sourcing over the next year. Those conversations could become tomorrow's allocation strategy.
Hybrids Are Still Giving Shoppers a Reason to Buy
Confidence is proving more valuable than commitment
Despite inflation, higher gas prices, and cautious consumer spending, Cox Automotive expects second-quarter U.S. sales to remain essentially flat. One of the biggest reasons is hybrid demand.
Hyundai, Kia, and Honda all posted strong June results behind electrified lineups, while Cox data shows 56% of shoppers say higher fuel prices make them more likely to consider a hybrid.
The brands winning today aren't asking customers to choose the future. They're giving them a bridge to it.
Consumers aren't walking into dealerships looking to win the ICE-versus-EV debate. They're looking for the option that fits their life today.
The opportunity for dealers is simple: make product knowledge a competitive advantage. When your team can confidently explain where an ICE vehicle, hybrid, or EV makes the most sense, trust follows.
Are You Making the Most of Your Trade-In Process?
Somewhere between "what's your best price?" and handing over the keys, a surprising amount of money quietly slips out the door; and it's usually wearing a trade-in badge.
Take the Trade-In Strategy Assessment and quick gut-check for your dealership's hidden upside.
Spoiler: there's more of it than you think.
Honda and Nissan Think the Next Battle Is Simplicity
The biggest competitive advantage may be fewer moving pieces
Honda says its partnership with Nissan is nearing its first major milestone, with shared electronic control units potentially arriving before the end of the decade.
It sounds like a technical story, but the bigger takeaway is strategic. Automakers are realizing they can't afford to engineer every system independently anymore.
The companies that simplify fastest may be the ones that innovate fastest.
Shared software and electronics could eventually mean easier diagnostics, better parts availability, and more efficient technician training across multiple brands.
Service Is Becoming the Dealership's Front Door
Customers are seeing more than the showroom now
More dealerships are redesigning fixed operations with cleaner shops, glass walls, technician videos, and layouts that make service visible instead of hidden.
That's about more than aesthetics. Customers increasingly judge the quality of a dealership by what they see after the sale.
Every inspection video and every service visit tells customers what your brand believes about quality.
Take a fresh look at your service department through a customer's eyes. Before the advisor speaks, what impression does your operation leave?
🚘 Auto
BYD delivered more than 557,000 battery-electric vehicles in Q2. Tesla reports tomorrow, but the Chinese automaker appears poised to reclaim the global BEV sales crown.
Rivian says demand isn't keeping its CEO awake at night. RJ Scaringe says securing enough memory chips for the R2 is a bigger concern than finding buyers.
Lamborghini is leaning further into hybrids. The company unveiled a new plug-in hybrid Urus after abandoning plans for a fully electric model.
💰 Living in the Future
PlayStation discs are heading toward retirement. Sony will stop producing new physical game discs in 2028, giving collectors one more reason to clutch their shelves.
Meta may start selling extra AI computing power. The company is reportedly eyeing a cloud business, because apparently even AI has leftovers.
AWS is embedding AI engineers with customers. Amazon is putting $1B behind a hands-on AI unit that sounds less like software sales and more like special ops.
📀 Oh My
Scientists built a synthetic cell that grows and divides. Still not a creature, but “lab-made life blob” is plenty strange for a Thursday.
Two climbers scaled the Empire State Building spire. They unfurled a peace banner at the top, which is bold, illegal, and very hard to ignore.
A woman reportedly had 38 parasites in her brain after a trip to India. That is enough internet for today, and a strong reminder to take symptoms seriously.
1698: English engineer Thomas Savery patents the first steam engine. ♨️
1788: New Hampshire becomes the 9th state to ratify the U.S. Constitution, providing the three-fourths majority required for it to take effect.
1890: The U.S. Congress passes the Sherman Antitrust Act, the first federal legislation designed to limit monopolistic business practices. 🚫
Thanks for reading, Friend! Better carpe that diem, before the diem carpes you.
