Automotive State of The Union

Episode #1491: Ford launches a privacy promise that lets owners shut off data sharing all the way down to a “quasi-’80s mode” car, used EV prices jump nearly 10% in a year and now sell faster than gas cars, and Starbucks spends more than $1 billion to bring back the comfy seats it ripped out.

Fordhttps://www.autonews.com/ford/an-ford-privacy-promise-1102/launched a “privacy promise” website that shows customers how it uses their data and how to opt out of sharing anytime, in the vehicle or the Ford app. It went live Nov. 2, days after GM agreed to pay $220 million over selling driver data to brokers.

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Depending on the model, owners can turn off sharing for navigation, vehicle diagnostics, and geolocation. Opting out of connectivity also shuts off features like real-time navigation and built-in roadside assistance.

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Chief Privacy Officer Kristin Jones said the goal is that a customer who wants zero connected data shared can “essentially create a quasi-’80s mode car.”

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Jones said Ford does “not sell driving data to data brokers at all” and won’t use it for targeted ads, though Ford still sees revenue potential in connected services, especially for commercial vehicles.

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Ford surveyed 1,000 consumers and found more than half value privacy but accept some sharing is needed to use certain tech. Jones said, “If people are opting out, we need to tailor our products and services to something they’ll want to use.”

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Used EV priceshttps://www.iseecars.com/hybrid-and-electric-car-prices-studyjumped 9.8% year over year in September to an average of $32,533, according to an iSeeCars study of more than 1.5 million 1- to 5-year-old cars. Hybrids rose 4.9% to $34,476, while gas cars barely moved, up 0.3% to $31,954.

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Used EVs now average $579 more than gas cars, after averaging $2,227 less a year ago. Hybrids are still the priciest category.

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EVs are also the fastest sellers at 41.9 days on market, down 10.1%, while gas cars slowed to 54.8 days, up 19.9%.

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The biggest price gainers were the BMW X2 (+24.3%), Tesla Model S (+22.5%), Tesla Model X (+18%), Lexus ES 300h (+15.5%), and Tesla Model 3 (+15.4%). The Ford Escape Plug-In Hybrid was the slowest seller at 154.5 days.

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Executive Analyst Karl Brauer credits higher fuel prices and said, “This trend will likely continue until fuel prices moderate.”

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Starbucks is spendinghttps://www.fastcompany.com/91632250/starbucks-spending-1-billion-undo-biggest-mistakemore than $1 billion to undo years of designing stores around mobile-order pickup, as CEO Brian Niccol’s “Back to Starbucks” plan works to restore the coffeehouse as a place to stay.

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Before Niccol arrived in 2024, Starbucks removed roughly 30,000 comfortable seats and blocked access to outlets to discourage lingering.

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Renovations cost about $150,000 per store across more than 8,000 locations, adding upholstered seating, warmer lighting, wood finishes, and plants. More than 25,000 seats are coming back to U.S. stores.

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More than 1,000 coffeehouses are done, with at least 1,500 expected by fiscal year end. Ceramic mugs, condiment bars, and handwritten notes on cups are back too.

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Starbucks will also test a smaller format with shorter counters and flexible seating to open in spaces that used to be too tight.

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Automotive News previewed what sets this year'shttps://www.autonews.com/awards/best-dealerships-to-work-for/an-best-dealerships-what-makes-winning-store-1102/150 Best Dealerships To Work For apart: paid health coverage, protected time off, and open books on store financials. The full ranking will be announced Nov. 4.

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92% of staff at winning stores say they have enough paid time off and sick leave, compared with 74% at stores that applied but missed the list. 94% are satisfied with their weekly hours, compared with 81%.

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Winners are far more likely to offer flexible hours (74% vs. 47%), 3- or 4-day workweeks (56% vs. 26%), and concierge perks like car washes and chair massages (61% vs. 31%).

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89% of winning-store staff know the store's financial status, compared with 66% elsewhere. Capitol Auto Group shares sales, ROs, and service gross with everyone at a yearly all-hands, and all four of its Salem, Oregon stores made the list.

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Patriot Subaru in Saco, Maine pays 100% of medical, dental, and vision for its 100+ employees, and most work four days a week. Owner Adam Arens said, "If it hasn't positively affected our bottom line, I would be shocked."

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Rivian CEO RJ Scaringe says the company is "very confident" it will hit an autonomy milestone this year that unlocks ahttps://www.reuters.com/business/rivian-says-its-track-250-million-uber-funding-by-year-end-r2-demand-strong-2026-10-29/$250 million tranche of Uber's investment, while R2 demand pushed deliveries to a record.

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Uber is investing up to $1.25 billion in Rivian through 2031, tied to autonomy milestones. The plan targets driverless R2 robotaxis on Uber's network in 2028, starting in a couple of cities and growing to about 25 over roughly 18 months.

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R2 outsold the R1 SUV, R1 pickup, and delivery van in its first full quarter, helping Rivian deliver a record 19,248 vehicles. A second shift is ramping, and cheaper R2 trims starting at $45,000 arrive next year.

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Cost of goods sold per vehicle fell more than $12,000 from Q2, though Rivian still loses money on every car. Its Volkswagen joint venture contributed $354 million in Q3 software revenue.

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The first VW vehicle running Rivian tech, a low-cost EV for Europe, is on track for 2027.

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Retailers are using AI to move personalization beyond broad recommendations and towardhttps://www.retailbrew.com/stories/how-ai-is-changing-personalization-in-retailpredicting routine household needs, with Walmart out front.

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Walmart's AI predicts rotating purchases, like lasagna ingredients or burger toppings that families buy every other week. EVP Daniel Danker wants to "take the essentials, the milk, and put it on autopilot."

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Walmart also pairs weather data with supply chain simulation to position products days earlier than before.

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Target's "Trend Brain" scans social media and fashion show imagery to predict which styles will sell, and retailers are mining TikTok and Reddit for early demand signals.

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eMarketer estimates 47.1 million Americans will use gen AI for personalized recommendations this year, rising to 72.1 million by 2030. CDW's Andy Szanger says AI helps merchandising teams move faster, with people still making the calls.

Today, Paul and Chris talk about Halloween and all the the amazing things dealers get to do today.

Brattleboro Subaru got into the Halloween spirit last Saturday, turning its parking lot into a candy-filled celebration for the fourth annual Trunk or Treat, bringing together costumed kids, families, and local first responders.

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About 17 decorated trunks welcomed trick-or-treaters, with everything from superheroes to ghosts and pint-sized monsters making an appearance.

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Local first responders and community organizations joined the festivities.

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And apparently, cider doughnuts were the hottest item on the lot — all 240 disappeared quickly.

Episode #1488: GM pays $220 million over selling driver data that insurers used to set rates, dealers finally get the hybrid SUVs they’ve been asking for, and Binance suffers a $6.3 billion security breach being called the biggest hack in history.

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General Motors will pay $220 million to settle claims from 35 states and D.C. that it sold drivers’ location and behavior data to brokers without permission. The brokers passed it to insurers, which used it to set and sometimes raise rates.

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The claims center on GM’s Smart Driver program, which enrolled millions of drivers from 2016 until GM shut it down in 2024. Many were also OnStar subscribers.

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GM must now limit the driving data it collects and get drivers’ express consent before collecting or sharing it.

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It follows a $12.75 million California settlement in May and a 2025 FTC agreement barring GM from sharing that data with consumer reporting agencies for five years.

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Oregon Attorney General Dan Rayfield said, “People bought a car, not a tracking device.”

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GM plans to add hybrid versions of its three-row Chevrolet Traverse, Buick Enclave, and GMC Acadia, according to Reuters sources, a strategic shift after years of betting heavily on EVs.

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GM confirmed it will invest in its Lansing Delta Township plant to prepare for hybrid production, without giving timing or models. A $500 million Energy Department grant originally meant for EV retooling will now go toward it.

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GM sells only one U.S. hybrid today, the Corvette, and its market share slipped to 16.6% through September from 17.4% as Toyota and Honda gained.

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Dealers have been pushing hard. “We’ve been telling them every chance we get that we need hybrids,” one dealer told Reuters.

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Binance, the world’s largest crypto exchange, says a security incident had an estimated $6.3 billion impact, with $3 billion already frozen. GSR’s Aravind Srinivasan called it “the biggest hack in history.”

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Binance suspended all deposits and withdrawals and pledged to cover all user losses through its SAFU fund and company money.

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A compromised laptop belonging to a DevOps engineer may have let the attacker submit unauthorized withdrawals. Binance found no evidence wallet private keys were compromised.

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Tether froze nearly $1.57 billion and Circle more than $800 million in related assets. Reuters reports the heist is being blamed on North Korea.

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Bitcoin fell about 2% to a six-week low near $77,600.

Episode #1487: Carvana sells more than 200,000 cars in a quarter for the first time, Ford’s profit ticks higher as it runs a lean truck playbook against rising costs, and Lithia’s AI agents are upselling the service work its people used to miss.

Show Notes with links:

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Carvana posted record third-quarter results, with net income up 84% to $483 million and, for the first time, more than 200,000 retail units sold in a single quarter.

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Retail sales hit 217,385 vehicles, and revenue topped $8 billion, up 42%. Both are quarterly records.

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At its current pace, Carvana is on track for roughly 870,000 annual sales, just 2% of the used market. Its long-term target is 3 million retail units a year by 2030 to 2035.

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Carvana has acquired seven CDJR dealerships since February 2025 and says new-car sales will fuel further expansion. It’s also scaling ADESA, now with retail reconditioning at 21 locations.

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CEO Ernie Garcia said, “We are just beginning to realize the potential of the machine we are building.”

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Ford’s third-quarter core profit ticked up to $2.7 billion as it pushed through F-150 production disruptions and rising commodity costs.

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Adjusted EPS of 49 cents beat forecasts of 40 cents on $49.5 billion in revenue. Ford raised the low end of its full-year EBIT guidance by $500 million to $10.5 billion.

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Commodity headwinds now total nearly $2.5 billion, up from $2 billion, driven by the Middle East conflict and higher copper, steel, fuel, and chip prices.

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Ford is keeping F-150 inventory at a lean 55 to 60 days’ supply versus the typical 80 to 100. CEO Jim Farley said that lets Ford “build that disciplined full-size truck business, while we watch our competitors play a very different game.”

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You can read more about the Q3 earnings in our daily email, which you can get by going to ASOTU.com

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Lithia Motors says AI is boosting service “pre-sales” at its U.K. stores by never forgetting to offer the add-ons busy humans skip.

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For six to nine months, Lithia’s U.K. dealerships have used a Pinewood.AI DMS whose AI agent books service appointments and consistently pitches extras like wiper blades and fluid changes.

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CEO Bryan DeBoer said, “We’re getting around 10% to 11% additional pre-sales on every AI. If I had to guess, before the AI went in, I’ll bet we had close to zero.”

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Lithia plans to finish rolling out Pinewood across all stores by 2028 but wants to bring the AI piece to the U.S. sooner.

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It’s part of a push to get SG&A below 60% of gross profit by 2028. It sat at 68.8% in Q3.

Episode #1486: GM is trading the NYSE for the Nasdaq to court tech investors, China’s car market is crashing at home while its exports flood the world, and Harley-Davidson’s LiveWire electric spinoff heads into restructuring after its CEO’s exit.

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General Motors is moving its stock listing from the New York Stock Exchange to the tech-heavy Nasdaq, becoming the first legacy automaker on the exchange as it pitches itself as a tech company.

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GM will keep its “GM” ticker and begin trading on the Nasdaq Global Select Market on Nov. 17. The switch makes it eligible for the Nasdaq-100, home to Apple, Microsoft, and Nvidia.

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The news came less than a week after GM’s Manhattan tech event showcasing AI, software, and “eyes-off” driving. Walmart, Hilton, and Palantir have made similar moves.

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CFO Paul Jacobson called Nasdaq “a natural home for our listing as we grow.” Shares jumped more than 5% Tuesday, though Morningstar’s David Whiston said GM remains a cyclical, capital-intensive automaker with a growing tech business.

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China's car industry is wowing the world while crashing at home. Chinese consumers bought about 22% fewer passenger vehicles through September than a year ago, and full-year sales are tracking toward 18.5 million, the worst since 2014.

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China can build roughly 63 million light vehicles a year, more than triple expected domestic sales. EV brands hit a record 143 at the end of 2025, many propped up by local governments reluctant to close plants.

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Prices have fallen nearly 20% since 2023, and industry margins sank to 3.6%.

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So automakers are exporting, on pace for 12 million vehicles this year. The five largest Chinese brands took 11.7% of Europe's market in September.

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Michael Dunne of Dunne Insights warned, “You get an earthquake in China, you get a tsunami outside.”

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Harley-Davidson's electric motorcycle dream is in trouble. LiveWire, the EV brand Harley spun off in 2021, has formed a special restructuring committee following the resignation of CEO Karim Donnez.

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The committee named Ankura Consulting's Roy Gallagher chief restructuring officer to evaluate “strategic alternatives.”

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LiveWire once predicted it would sell more than 100,000 motorcycles annually by 2026. By midyear, it had shipped just 358, and it has lost more than $300 million since the spinoff.

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Harley still owns nearly 90% of LiveWire but said last year it would invest no more. Shares are down 62% this year.

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Northcoast Research analyst John Healy said, “It's a great concept, but maybe not ready for the masses at this point.”

Episode #1485: Scout's direct-sales fight survives another courtroom challenge, Porsche's profits roar back as the brand bets on higher-margin models, and new research suggests that choosing to be your own boss might actually help you live longer.

Show Notes with links:

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A federal judge has again refused to dismiss the California New Car Dealers Association's lawsuit against Scout Motors and VW Group of America over Scout's direct-to-consumer sales plan.

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Chief Judge Cynthia Bashant denied the motions Oct. 22, her second rejection after a similar March ruling.

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The court reaffirmed that California law bars manufacturers from competing with their own franchised dealers, even indirectly through an affiliate. The CNCDA argues Scout, wholly owned by VW, is exactly that.

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The case now moves through discovery, while 14 California VW dealers have separately filed protests with the state's New Motor Vehicle Board.

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Scout's Traveler SUV isn't slated for series production until 2028.

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CNCDA chief legal officer Anthony Bento said, “Our claims stand, and we continue with discovery in the case.”

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Porsche posted a sharp profit rebound for the first nine months of 2026, an early sign that CEO Michael Leiters' plan to shrink the company and pull back from China is working.

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Operating profit reached €1.74 billion, up from just €40 million a year ago, when costs tied to its halted EV strategy crushed results. The margin climbed to 6.9%, with Q3 topping 10%.

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Sales of the flagship 911 rose 12%, the only model in the lineup to grow. Leiters is betting on more customization and exclusive, higher-margin models, trading volume for profit.

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With no production outside Europe, Porsche is still absorbing U.S. tariffs. CFO Jochen Breckner said Audi's potential Georgia plant won't shift Porsche production, since it would mean “double investments when it comes to suppliers.”

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New research suggests starting your own business could help you live longer, especially if you chose that path.

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Stevens Institute of Technology professor Cristiano Bellavitis and colleagues analyzed about 20 years of data on 27,501 Americans aged 50 and older.

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Entrepreneurs had a 10% lower risk of premature death than lifelong employees, even after accounting for age, income, wealth, and education. They also reported less depression and loneliness.

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The benefits showed up for people who started businesses out of desire, not necessity, and were greatest where autonomy was highest.

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Bellavitis credits autonomy and the chance to pursue meaningful work, benefits he says “may have lasting effects.”

Episode #1484: We're celebrating three familiar faces on Automotive News' 40 Under 40, looking at why dealerships remain central to car buying even as shoppers embrace AI and digital tools, and meeting a Texas startup turning oilfield wastewater into a potential source of lithium for EV batteries.

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Automotive News has unveiled its 2026 40 Under 40, recognizing the next generation of leaders making their mark in automotive retail. We’re giving a special shoutout to three honorees we know: Akshay Mahajan, Amir Alahwal, and Elizabeth Shults.

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The list celebrates talent from across the dealership world, including sales, service, marketing, digital operations, and customer experience. Many honorees started in entry-level roles before working their way into leadership.

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Akshay Mahajan acquired AM Ford in Jefferson, Ohio, in 2024 and grew annual new-vehicle sales from roughly 40 to 172 in 2025, with the store on pace to beat that number this year. He credits a family-like culture and investing in his people.

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Amir Alahwal started as a receptionist at Mercedes-Benz of Temecula in 2016 and now leads customer experience and development at Unstoppable Automotive Group. He used AI to turn days of conquest lead research into minutes and launched a profitable mobile service van.

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Elizabeth Shults led McLarty Daniel’s “Year of Buick” campaign, using digital ads, football stadium promotions, and radio spots she voiced herself to sell nearly 400 vehicles against a goal of 300, almost doubling the previous year.

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Shults also tackled weeks-long service backlogs at the group’s Ford store through mobile service, vehicle pickup, and a software change that saved eight minutes per customer-pay repair order. Waits dropped to under a week, and the improvements returned an estimated 8,400 staff hours annually. As Shults put it, “We very much endeavor to not just do things as they always have been done.”

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A new global survey from Bain & Co. finds that even as car shoppers embrace online research and AI, the vast majority still close the deal in person.

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The survey of more than 12,000 consumers across 11 countries found that over 80% combine online and offline shopping, and more than 60% start online. Yet nine in 10 still complete their purchase at a dealership.

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Price remains the top purchasing consideration in the U.S. (68%) and Europe (62%). In China, technology and features rank ahead of price, cited by 58% of buyers.

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AI is becoming part of the shopping process, topping 90% in Indonesia and approaching 80% in China. In the U.S., 55% of younger buyers use AI to research cars, more than twice the share of older consumers.

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Interest in Level 3 autonomous driving varies dramatically: 84% of Chinese consumers would consider it, compared with 47% in Europe and 40% in the U.S.

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Bain's Klaus Stricker said, “Technology is now part of the reason customers choose one manufacturer over another.”

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The Permian Basin produces millions of barrels of oil a day, but it also pumps out an enormous amount of unwanted water. Now Houston startup Element3 wants to turn that wastewater into a domestic source of lithium for EV batteries.

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That brackish water is five times saltier than today's oceans and contains valuable minerals, including lithium, magnesium, and strontium.

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Founded in 2021, Element3 is commercializing research from the Department of Energy's Oak Ridge National Laboratory to filter lithium from the wastewater. The startup has raised just over $20 million and is working to scale production across Texas.

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Oil companies have already built massive infrastructure to move the water, giving Element3 an opportunity to develop a domestic lithium supply in a market where most processing happens in China.

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Element3 CEO Hood Whitson called it “a wonderful circular economy, waste-to-value story.”

Paul, Kyle, and Chris talk about the big impact from the Car Dealers making seemingly small contributions that make a big difference.

Episode #1482: Foxconn is buying half of Mitsubishi Electric's auto equipment business to build EV platforms in Japan. The WSJ takes a $29K Chevy Bolt through the Deep South's charging desert and finds it nearly as easy as gas. Plus, Gallup shows Gen Z's wellbeing sliding while Baby Boomers are happier than ever.

Show Notes with links:

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Foxconn ishttps://www.wardsauto.com/news/foxconn-to-acquire-50-stake-of-mitsubishi-electric-mobility/833661/taking a 50% stake in Mitsubishi Electric Mobility, which runs Mitsubishi Electric's automotive equipment business, for about 115 billion yen, or roughly $728 million.

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The two companies will jointly run the business under the Mitsubishi Electric Mobility name. The deal is expected to close October 1, 2027.

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Mitsubishi brings electric powertrains, software and vehicle control systems. Foxconn brings manufacturing speed and scale.

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The first plan is to build EV platforms developed in Japan, then expand into global markets.

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It is the latest step in Foxconn's push beyond Apple devices into EVs, which included buying GM's former Lordstown, Ohio, plant in 2021 before that partnership ended in a lawsuit.

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WSJ's Christopher Mims drove ahttps://www.wsj.com/business/autos/chevy-bolt-electric-vehicle-road-trip-e908d4202027 Chevy Bolt, America's most affordable EV at $28,995, from Nashville to New Orleans through the states with the fewest chargers per person. It was only a little less convenient than gas.

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At 75 mph, real-world range was closer to 200 miles than the 262-mile EPA rating, which forced a reroute through Shreveport.

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The built-in Google Maps plans charging stops and preheats the battery, cutting charging time by about a third.

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Most stops were Tesla Superchargers, billed automatically to the card GM keeps on file. The U.S. now has more than 80,000 public fast-charging plugs.

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Mims: “Owning an EV and using it as you would a gas vehicle is now mundane.”

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A new Gallup poll showshttps://www.fastcompany.com/91625290/gen-z-mental-health-is-declining-but-baby-boomers-are-getting-happier-happiness-gallup-pollGen Z's wellbeing sliding while Baby Boomers are happier than in years. Only 44% of adults 18 to 29 say they are thriving in 2026, down from 64% in 2010.

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Gen Z rebounded to 51% in 2023 before falling again. Gallup cites rising depression, weaker relationships and fewer days that feel enjoyable or productive.

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Millennials are at 45% thriving, down from 62% in 2016 and 2017. Gen X sits at 46%, matching its 2008 low.

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Boomers 65 and older climbed from 38% thriving in 2008 to 53%, tying their record high.

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Money looks like the difference: 59% of Boomers say they have enough to do everything they want, and 67% didn't worry about money in the past week.

Tesla’s profit drops 43%, and Elon Musk says robotaxis and Optimus robots are where the growth will come from. GM plans to put eyes-off driving on its highest-volume trucks and SUVs. Plus, why AI is rewarding deep specialists and high-agency generalists while the middle of the workforce shrinks.

Elon Musk used Tesla’shttps://www.wsj.com/business/autos/tesla-tsla-3q-earnings-report-2026-stock-a1dc9ce2third-quarter earnings call to point investors past the car business. He said Optimus humanoid robots could ship to outside companies by the end of 2027 and that the Robotaxi fleet will soon be a major source of revenue.

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Tesla has started early production on a high-volume Optimus line in Fremont that is designed to build about 1 million robots a year. Musk said reaching 20,000 robots a week will take “at least a year, maybe a little longer.”

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The first outside buyers will be industrial companies using the robots for dangerous, repetitive work, and home robots would come later. Tesla has not named a customer or a price.

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Robotaxi now operates in six cities and Dallas is next. Since Cybercab launched in Austin in September, that fleet has grown tenfold, and Tesla’s unsupervised miles grew about eightfold during the quarter.

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CFO Vaibhav Taneja said Robotaxi will become “a significant part of our revenue and profitability in ’27.” Musk expects it to be noticeable by Q2 2027 and “a big deal” by the second half of the year.

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GM ishttps://www.carscoops.com/2293287/gm-autonomous-driving-in-more-models/expanding its eyes-off driving system beyond the 2028 Cadillac Escalade IQ. It will go to GM’s highest-volume gas full-size trucks and SUVs, its three-row crossovers and its next generation of EVs, with the next Silverado named as a recipient.

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Super Cruise has logged more than 1.2 billion hands-free miles since 2017, but it is still Level 2, so drivers have to keep their eyes on the road. The new system is Level 3, which legally lets drivers use their phones on approved roads.

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The system uses lidar and a new liquid-cooled central computer that GM says is about 40 times more powerful than the computers in its current vehicles.

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Mercedes and BMW both offered Level 3 in the U.S. and pulled back to hands-on systems because the cost was high and demand was weak.

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GM says it will “quickly roll out this platform.” The long-term goal is a car that can run errands, like a grocery pickup, with nobody in it.

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Luxury Presence CEO Malte Kramer argues in Fast Company that AI ishttps://www.fastcompany.com/91622338/the-two-types-of-employees-who-will-thrive-in-the-ai-erahollowing out the middle of the talent market. Being solid at several things used to be rare, and AI makes it common.

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Extreme specialists have deep expertise that AI can’t copy. They are also better at directing AI because they know what good work looks like.

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Extreme generalists are high-agency people who use AI as a multiplier. Kramer’s example is one person handling email marketing, paid ads and SEO, which used to take three people.

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The people at risk are those who have done one job competently for years without going deeper or broader.

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Kramer said, “value concentrates at the extremes.” His team hires for curiosity, learning speed and a habit of working at the edge of what they know.

Episode #1480: NADA names its next leaders as Sandy Fitzgerald Angello prepares to make history, while China's Chery explores partnerships with U.S. automakers. Plus, Hertz is giving used-car shoppers three days to decide if their next ride is really the one.

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NADA has elected its next two leaders, with Maryland dealer Sandy Fitzgerald Angello set to become chairman in 2027 and Iowa dealer Jeff Weber stepping into the vice chair role, putting him on track to lead the association in 2028.

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Angello, dealer operator at Pohanka Automotive Group, will become just the second woman to chair NADA, following Annette Sykora in 2008.

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Weber is a third-generation dealer who started in F&I in 1999 and now leads Anderson-Weber Toyota in Dubuque and Toyota of Muscatine. He has represented Iowa on NADA’s board since 2018.

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Both leaders begin their terms at the NADA Show in February 2027. Weber says his priorities include dealer advocacy, regulatory pressures, and NADA’s customer experience initiative focused on transparency and consumer trust.

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Angello said, “Given the current challenges facing the auto retail industry, it’s important that we continue building on our advocacy efforts and delivering results for our Main Street businesses and valued customers.”

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China’s largest auto exporter, Chery, is openly exploring partnerships with American automakers as it looks for a way into the U.S. market. With tariffs and data security rules keeping Chinese automakers out, Chery says it’s willing to get creative.

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Chery, which sells the Omoda and Jaecoo brands, is preparing to launch in Canada early next year as part of its North American expansion.

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VP Charlie Zhang says Chery is considering multiple options for entering the U.S., including potential partnerships with American automakers, though he offered no specifics.

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Zhang believes Chery could develop vehicles without Chinese hardware or software to address technical barriers to entering the U.S. market.

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Zhang said, “We're very open to different options, even a potential partnership with American automakers.”

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Hertz is giving used-car shoppers more time behind the wheel before making a purchase, expanding its TestDrive+ program to more than 300 neighborhood rental locations. The idea is simple: try the car for a few days, then decide if it's the one.

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Previously called Rent2Buy, TestDrive+ lets customers drive a vehicle for up to three days before deciding whether to purchase it.

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Shoppers pay a daily drive fee, but Hertz waives that fee if they buy the vehicle.

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Most vehicles available through the program are from the 2025 or 2026 model years.

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Hertz Car Sales EVP Jeff Adams said, “Buying a car is a big decision, and customers have told us they want more time and flexibility to get it right.”

Episode #1479: New York City takes CarGurus to court over its “Great Deal” ratings, Toyota and Honda put humanoid robots to the test on factory floors, and Starbucks makes the case for technology that supports human connection instead of replacing it.

Show Notes with links:

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New York City is suing CarGurus over its “Good Deal” and “Great Deal” ratings, alleging that hidden fees and other requirements make some advertised bargains misleading. CarGurus is pushing back, defending its pricing transparency practices and recent dealer fee-disclosure requirements.

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The city's Department of Consumer and Worker Protection alleges more than 2,000 consumer protection violations and is seeking civil penalties and a permanent injunction against deceptive practices.

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In one example, regulators said a 2018 Honda advertised as a “Great Deal” at $2,212 below market value actually cost $1,473 above market value after mandatory fees.

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CarGurus began requiring mandatory dealer fee disclosures July 14, removing deal ratings and lowering search placement for noncompliant listings. By July 29, the company said more than 90% of subscribing dealers' used inventory included disclosed fees.

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NYC regulators say an analysis of more than 40,000 online vehicle listings found an average of roughly $1,100 in mandatory fees added to advertised prices. The agency has also investigated more than 106 used-car dealerships over five years.

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CarGurus CEO Jason Trevisan rejected the allegations: “We reject the DCWP’s claims and will defend the company vigorously.”

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Toyota and Honda are putting AI-powered humanoid robots to work in factory trials across Japan, as Japanese automakers race to catch up with robotics advances in the U.S. and China. Honda is even preparing to design future vehicles with robot workers in mind.

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Toyota plans to deploy 400,000 new robots across its group companies, investing $6.3 billion annually beginning in 2028. Its ELEY robot is already being tested for parts supply and placement.

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Honda demonstrated a four-fingered robotic hand capable of picking up tiny bolts and ratcheting them into a gearbox. It's also testing its Avatar Robot on wire harness installation, a task requiring significant human dexterity.

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The competition is heating up: Tesla has dedicated former Model S and X factory space to its Optimus robot, Renault targets 350 humanoids by 2027, and Mercedes-Benz aims for assembly-line deployment by 2030.

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Japan has budgeted $2.5 billion this year for domestic AI development supporting robotics, while Morgan Stanley projects the humanoid robotics market could reach $5 trillion by 2050.

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Toyota robotics research lead Hiroshi Bito acknowledged the technology's limitations: “Physical AI is not yet mature, so we are starting with simple tasks. This is just the starting line.”

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Starbucks wants operations to make room for people. In an interview published Monday, Starbucks COO Mike Grams describes an operating approach built around consistent service, local decisions and human connection.

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Green Apron Service aims to create consistency while leaving employees room for authentic interactions. Coffeehouse leaders can make food-ordering decisions based on local customers and demand.

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Grams connects hospitality to staffing, training, the store environment and frontline support. Leaders are expected to coach and develop people.

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His test for technology: “Technology should unlock the experience, not be the experience.”

Episode #1478: Ford overtakes Toyota in quarterly certified pre-owned sales, Subaru steps out with its own next-generation EV technology, and Carvana extends its Rush Soccer partnership with a new scholarship fund.

Show Notes with links:

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Ford has overtaken Toyota as the top certified pre-owned brand for the third quarter, with Blue Advantage sales surging 44%. Now Ford is eyeing the full-year crown in 2027, positioning certified vehicles as a major part of its affordability strategy.

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Ford's certified sales have climbed 96% since launching Blue Advantage in 2021 and are on pace to hit a record 450,000 vehicles in 2026.

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Ford expanded CPO eligibility from five years and 80,000 miles to vehicles up to 10 years old with 150,000 miles.

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Roughly 300 additional Ford dealers joined the program over the past year, pushing participation to nearly 70%.

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Ford is expanding certified sales into commercial vehicles through Ford Pro Advantage, covering Class 1–7 trucks and vans, including vehicles coming off rental and fleet duty.

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Ford director of U.S. sales and dealer relations Rob Kaffl said, “We’ve talked about certified being our big affordability strategy as we transition to the end of the decade.”

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Subaru is stepping out of Toyota’s shadow with a new generation of independently developed EV technology, aiming to move faster against Chinese competitors while preserving the all-wheel-drive performance and safety that define the brand.

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Subaru unveiled its next-generation EV prototype on October 18, showcasing technology developed in roughly half the usual time. Some of it could reach production around 2029.

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The new Panasonic battery pack is 25% lighter than the previous design, with Subaru targeting energy density 20% above the industry average.

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Subaru is also developing more efficient combustion engines for future hybrids and gasoline vehicles.

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Toyota originally helped Subaru enter the EV market with four jointly developed crossovers: the Solterra, Trailseeker, Uncharted, and Getaway.

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Subaru engineering executive Takatomo Watamori said, “By developing vehicles in-house and having EV technologies on our own, we can quickly deliver to our customers the peace of mind and driving pleasure that define Subaru, even in this era of change.”

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Carvana is kicking its youth sports sponsorship into a higher gear, signing a multi-year extension with Rush Soccer, described as the world's largest youth soccer club, and launching a new scholarship fund to help more kids get on the field.

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Carvana will remain the front-of-kit sponsor on all Rush Soccer game jerseys, extending its branding presence across the youth soccer organization.

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The partnership introduces a $200,000 youth soccer scholarship fund designed to reduce financial barriers for players throughout the league.

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New custom-designed jerseys featuring Carvana branding will debut in January, alongside continued Carvana activations at select Rush events and content collaborations.

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Rush Soccer CEO Justin Miller said, “The scholarship fund helps ensure cost isn’t what keeps a kid from playing. Together, Carvana and Rush are setting the standard for what a partnership in youth sports should look like.”

Episode #1470: Today we’re talking about Greenway’s proposed FTC settlement over advertised prices and the growing divide in wholesale values between fuel-efficient vehicles and gas guzzlers. Plus, a startup is betting that a $15,000 electric neighborhood vehicle could handle the family’s daily errands. Could your next second car look a lot like a golf cart?

Greenway has agreed to a proposed FTC settlement over allegations that its advertised prices were thousands of dollars below what customers actually paid. The case puts the gap between the online price and the showroom price back in the spotlight.

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The case involves four Kia dealerships and one Hyundai dealership affiliated with Greenway.

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The FTC alleges customers paid more than $3,350 above the advertised price, on average, in over 92% of transactions.

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According to the complaint, the dealerships continued the practices after a March warning, even while adding assurances of price transparency to their websites.

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The proposed order would require advertised prices to include all required charges except government-required charges. It also addresses misleading financing claims and deceptive prize mailers.

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The settlement awaits court approval, and the defendants neither admit nor deny the allegations.

Fuel economy is reshaping wholesale values. Vehicles averaging more than 40 mpg, mostly hybrids, have gained nearly 10% in wholesale value since January, while the least-efficient vehicles are losing ground.

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Vehicles averaging more than 40 mpg are up 9.9% since January.

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The 35–39 mpg group is up 3.7%, showing strength extends beyond the highest-efficiency vehicles.

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At the other end, the report shows vehicles below 15 mpg down 15%, while the 15–19 mpg group is down 8.8%.

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Diesel vehicles have a 39-day supply, 11 days above the overall market and up 27% year over year.

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For dealers, the split is a reminder to watch fuel economy alongside age, mileage, and segment when making acquisition and pricing decisions.

Your next family runabout might look more like a golf cart than an SUV. Chip Motors is developing an electric neighborhood vehicle with a planned $15,000 starting price and enough personality to make the school run a little more interesting.

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The company plans a four-seat model for $15,000 and a six-seat version for $18,000.

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Chip claims a 100-mile range, with a top speed of 25 mph.

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Its lavender prototype features expressive headlights and a voice interface, giving the vehicle a character of its own.

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Deliveries are planned for 2027. AI and driverless capabilities remain development ambitions.

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The practical limit is where it can safely and legally travel: this is a low-speed neighborhood vehicle, so the family’s actual routes matter as much as the price.

Episode #1475: We're celebrating the dealers nominated for TIME Dealer of the Year, digging into Carvana's hundreds of Google Business Profiles and the mysterious addresses behind some of them, and revisiting a 1956 Cadillac concept that escaped the crusher and sold for nearly half a million dollars.

Show Notes with links:

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The woman who coined the phrase: love people more than cars, Liza Borches, president and CEO of Carter Myers Automotive, has been nominated for the 2027 TIME Dealer of the Year Award. She joins an impressive national field of dealers being recognized for both dealership excellence and their commitment to their communities.

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Borches has grown Carter Myers Automotive from four dealerships when she joined in 2003 to 26 dealerships representing 18 franchises across four states. CMA associates own 26% of the company through its employee stock ownership plan.

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Through partnerships including Giving Words VA, CMA has helped provide vehicles to 55 single mothers and funded hundreds of repairs.

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The 2027 nominee lineup includes several other standouts: New York’s Kristin Hutchins of Ruge’s Subaru, whose store reports 128% service retention; California’s John Patterson of Tustin Mazda, whose automotive group reports employee turnover below 5%; and Maryland’s Robert Fogarty of Sport Honda, who helped deliver a child-sized electric Honda Shogo to Children’s National Hospital.

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The nominees will be honored at the NADA Show in Orlando.

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Borches summed up CMA’s philosophy: “We do not simply acquire dealerships; we welcome more people into ownership.”

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Carvana has at least 266 Google Business Profiles, but an investigation by CDG News found that 109 point to addresses where Carvana doesn't actually operate.

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Of the 266 profiles, 101 represent legitimate Carvana facilities, including vending machines, logistics sites, and seven Stellantis dealerships. Another 109 point to government buildings, unrelated businesses, homes, parking lots, and other non-Carvana locations across 36 states.

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Customers have noticed. One Wisconsin reviewer wrote, “THIS IS NOT CARAVANA! This is a jewelry store.”

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Google's standard Vehicle Listing Ad rules require a physical dealership location, but a newer beta program allows national retailers to advertise more broadly. It's unclear whether Carvana participates or has a separate agreement with Google.

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Carvana defended its local search presence, saying: “Because of our e-commerce model, the physical location of the vehicle is less relevant to who we can serve.”

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A one-of-a-kind 1956 Cadillac concept that GM ordered destroyed nearly 70 years ago has just sold for $494,500 at auction. The Eldorado Brougham Town Car survived thanks to a junkyard owner who couldn't bring himself to crush it, turning a planned demolition into an incredible piece of automotive history.

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Known as the XP-48, the car debuted at GM's 1956 Motorama. It featured an open chauffeur's compartment, enclosed rear cabin, gold-finished hardware, an intercom, and even a cigar humidor.

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In 1958, GM shipped the Cadillac and three other concepts to a Michigan scrapyard for destruction. Owner Harry Warholak Sr. secretly kept the Cadillac in a trailer, reportedly hoping to use it for his daughter's wedding. The wedding appearance never happened.

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The car wasn't originally drivable. It had no engine, functional electrical system, or working brakes. During its restoration, collectors installed a period-correct powertrain, including dual four-barrel carburetors and gold-plated valve covers.

Episode 1477: It's Saturday as Paul, Kyle, and Chris celebrate a Georgia Ford dealership giving its local Teacher of the Year a brand-new ride. Show Notes:

Butler Ford in Baldwin County, Georgia, awarded local Teacher of the Year Madison Sapp, a math and science teacher, a one-year lease on a brand-new Ford.

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A simple, replicable idea: Every community has outstanding teachers worth celebrating, and dealerships have a unique opportunity to recognize them.

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A win for everyone: The crew points out that the gesture benefits the teacher, reflects positively on the dealership and Ford, and eventually returns a used vehicle to inventory.

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What if every dealer joined in? Kyle challenges dealerships nationwide to provide a vehicle to their local Teacher of the Year.

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Inspiring the next generation: Chris imagines how seeing the automotive industry support their teachers could influence students' perceptions of dealerships and even inspire future automotive careers.

Episode #1476: TrueCar CEO Scott Painter joins Paul and Kyle to talk about consumers shopping by payment, California's new pricing transparency rules, and the rise of AI-powered car brokers. Plus, why he predicts more dealer consolidation and an end to wildly different prices for identical new cars.

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Painter says consumers are price shoppers but payment buyers, with affordability pushing shoppers toward used cars, smaller vehicles, and longer shopping cycles.

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TrueCar works with over two-thirds of franchised dealers and is building a shopping experience that connects vehicle pricing, trade-ins, financing, and insurance.

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Painter supports the transparency goals of California's new CARS Act, despite criticizing its name, and says clearer pricing helps consumers buy with confidence.

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Agentic AI could automate car brokering, contacting dozens or hundreds of dealerships for the lowest price. Painter warns of a race to the bottom and predicts more dealership consolidation.

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Painter predicts: “At some point, the arbitrage around what people pay for a new car is going to be over.”

Episode #1474: It's Wednesday as auto credit availability reaches its highest level in over a decade, even as buyers stretch loan terms to make payments work. Then Glenn Pasch joins us to unpack new research on how dealerships can get AI and their people working better together.

Show Notes with links:

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Auto credit availability improved for the fifth straight month in September, reaching its highest level since April 2015. But as vehicle prices keep rising, more buyers are relying on longer loans, smaller down payments, and negative equity to make the numbers work.

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The Dealertrack Credit Availability Index rose 1.9% to 107.1, up 9.4% year over year.

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Subprime borrowers accounted for 17.4% of loans, up from 15.1% a year ago.

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A record 31.8% of loans carried terms longer than 72 months, up from 26.9% a year ago.

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Negative equity climbed to 57.8%, and down payments fell to 12.8%, their lowest level since September 2022.

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Glenn Pasch joins the show to discuss the Pasch Group’s research report on AI and Dealership Staff: Finding the Right Balance.

Episode #1473: It's Tuesday, and we're coming off an absolutely incredible fifth year at the Beaver Golf Tournament, where beautiful weather, an amazing community, and a whole lot of generosity came together to raise over $126,000 for four charities!

We're celebrating the people who made it all happen before diving into why transparency has become table stakes for dealerships and what it really means to stand out in today's retail environment. Plus, we're talking about the unique advantage dealers have when they're deeply integrated into the micro communities they serve, and why those local connections are worth celebrating.