Volvo Dealers Protest Pressure to ‘Take More Cars’ as Inventory Bloats, Q1 Sales Dive 32%
Volvo Cars’ U.S. sales slumped 32 percent in the first quarter, marking a third consecutive decline for the Swedish automaker in the world’s second-largest auto market. The performance, Volvo’s worst start to a year since 2020, has deepened dealer frustration with an aging product portfolio, inconsistent factory support and lingering fallout from an errant all-electric strategy that has left the brand misaligned with consumer demand, reports Automotive News.Volvo, which sold just 22,651 vehicles in the first three months, blamed the sales slide on geopolitical uncertainty and the end of federal EV subsidies. It also noted the difficulty of matching the sales surge created by consumers scrambling to get ahead of President Donald Trump’s import tariffs in early 2025.Regardless, the real pain is landing on U.S. dealers. Overcrowded lots are driving up floorplan costs, forcing aggressive discounting and sales to brokers that are eroding profitability and brand value. Volvo ended the first quarter with 93 days’ worth of inventory, according to Edmunds, well above the industry average of 65 days and worse than the 81-day supply it had a year ago. One Volvo dealer sitting on a six-month supply described intense wholesale pressure from the factory. Click here for the full story.
Chinese Premium Brands to Watch as They Target Europe and Eye U.S. Market
China’s premium car brands are pushing into Europe and Latin America with names that remain largely unknown to American customers: BYD Co.’s Denza, Geely Auto Group‘s Zeekr, China FAW Group Corp.‘s Hongqi. Their swift growth, affordable sticker prices and improving quality make them potent future rivals to Cadillac, Lexus, BMW, even Tesla — and potential franchise opportunities for U.S. dealers willing to take the risk.No Chinese premium player has laid out concrete U.S. plans yet, but some have shown strong interest in the market despite hefty tariffs and scrutiny of their technology. Many of the upmarket hopefuls were founded in just the last several years and focus mostly on electric vehicles.Automotive News outlines the brands to watch, especially for retailers considering early entry into franchises that could emerge as the next wave of Asian challengers, or for legacy luxury executives watching their backs for the next big threat from China. China’s premium brands, like their mass-market siblings, are looking overseas partly as the first step in building globally competitive businesses and partly to avoid the bruising price war in an increasingly saturated home market. Click here for the full story.
Amazon Expands Online Car Sales Platform with More Brands, Markets
Amazon is accelerating its push into vehicle retail, expanding its Amazon Autos platform to include more brands and markets as it looks to reshape how consumers shop for cars. Originally launched in late 2024 with Hyundai, the platform now includes additional automakers such as Kia, Mazda, Subaru, Chevrolet, and Jeep, and operates in more than 130 U.S. cities, reports CBT News.The service allows shoppers to browse inventory from local dealerships, complete financing paperwork online, and reduce time spent in-store. Dealers pay to list vehicles on the platform, while customers are not charged additional fees. Amazon’s expansion signals a broader effort to capture a share of the $1 trillion-plus U.S. vehicle market, one of the largest remaining retail categories still heavily reliant on in-person transactions. Despite the growth, adoption remains uneven. Some dealers report slow traction and logistical challenges tied to financing, compliance, and delivery coordination. Vehicle purchases continue to require in-person steps, limiting how fully digital the process can become. At the same time, others see long-term potential as more consumers shift toward online-first shopping experiences. Amazon’s scale, brand trust, and reach, particularly among younger buyers, could gradually influence how customers initiate the purchase journey. Click here for the full story.
High Gas Prices Are Tempting Americans Back to EVs
Skyrocketing gas prices cemented Eric Janney’s decision in March to go electric for good. The IT worker in Aliquippa, Pa., bought a lightly used Kia EV6, after trying the same vehicle on a cheap lease for the past couple of years.“Knowing that we can go out and do what we need to do at any time and not have to worry about how much we’re gonna be able to put fuel in the tank has been incredibly beneficial,” said Janney, 43, whose wife is a homemaker. Car-shopping platforms such as Cars.com and Edmunds say they have seen an uptick in EV interest as Americans adjust to life with gas over $4 a gallon, while auto executives say a renewed focus on fuel efficiency could mark the bottom of the EV meltdown. Edmunds said shopper consideration of EVs on its website has risen nearly to what it was before tax incentives ended last year. “In the short term, a lot of Americans—and this has nothing to do with regulations—are coming back to EVs because of the cost of ownership,” Hyundai Chief Executive José Muñoz told The Wall Street Journal. “Basically, the fuel costs are making them change their decision.” Click here for the full story.
Used-Car Prices Rise as Demand Stays Strong, Inventory Tightens
Manheim wholesale prices for used vehicles rose year over year in March, driven in part by stronger consumer demand for used cars. According to Cox Automotive, its Manheim Used Vehicle Value Index (MUVVI) rose to 215.3, up 6.2 percent YoY and marking its highest level since the summer of 2023. “Sales conversion rates, a clear sign of demand, were higher against 2025 for every week but one in Q1, and vehicle value trends at auction show we are well ahead of last year and where we would normally be during a spring bounce in the wholesale markets,” said Jeremy Robb, chief economist at Cox Automotive. “We thought we’d see some impact from the Middle East conflict, and that may still happen. But right now, the data is clear: used-vehicle demand is healthy, and inventory levels are relatively tight.” According to CDG, with affordability pressure in the new-vehicle market, retail conditions for used vehicles strengthened in the first quarter of 2026 as the spring selling season arrived, helped by higher-than-average tax refunds, according to Cox. Click here for the full story.
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