An Aluminum Crisis Is Roiling the Auto Industry
The auto industry in North America consumed 3.7 million metric tons of aluminum last year, nearly 30 percent more than in 2020, according to metals-market consulting firm CRU. Lately, however, higher aluminum prices from the Iran war, a 50 percent U.S. tariff and a production outage by a major supplier have strained automakers. The U.S. cost of primary aluminum from smelters is nearly 90 percent higher than a year ago, reports The Wall Street Journal. The war in Iran is driving up prices by effectively choking off shipments from the Persian Gulf countries, which supply about one-fifth of the aluminum consumed in the U.S. The U.S. aluminum industry is also heavily dependent on imported primary aluminum, mostly from Canada, but automakers and other buyers pay the tariff no matter where the metal comes from. With the global aluminum price at about $3,500 a metric ton, the tariff and delivery-related charges raise the U.S. price to $6,100, compared with $3,220 paid a year ago, according to S&P Global Energy. Click here for the full story.
Diehl Automotive Group Adds Toyota, VW Dealerships Amid Buying Spree
Diehl Automotive Group on March 31 acquired two dealerships in Wooster, Ohio, as well as an off-site collision center from Firelands Automotive Group, adding to a string of acquisitions accelerating the group’s growth this year. The acquisition of Firelands Toyota of Wooster and Firelands Volkswagen of Wooster — which will now operate under the Diehl banner — are the second and third dealerships the automotive group has acquired in the past four months, President and CEO Corina Diehl told WardsAuto on a Zoom Call. In December, the group acquired McElwain Motor Car Company in Ellwood City, Pennsylvania.The purchases bring the group’s total number of rooftops to 24 with 33 franchises representing 13 different brands. Diehl attributes the ability to absorb so many acquisitions in a short period of time to having a solid management structure. “I have a great team of directors now,” Diehl said. It wasn’t always that way. “I remember, we never had directors — you know, go back five years, we were doing all that work.” Click here for the full interview.
Toyota’s Top 5 Risks as New CEO Kenta Kon Reports First Earnings Amid Mounting Tariff, War and Supply Disruption
New Toyota CEO Kenta Kon delivers his first earnings report May 7 backed by record global sales but facing mounting threats from tariffs, the war in Iran and frayed supply chains that could easily dent fiscal year profits already forecast to drop 21 percent. The day Kon was announced as CEO in February, Toyota forecast operating profit would fall to $24.22 billion in the fiscal year ending March 31. The revised outlook was an improvement over its previous expectation for profit of $21.67 billion.Net income was pegged to decline 25 percent to $23.9 billion in the 12 months.But those forecasts came before the U.S. and Israel attacked Iran, upending global trade. Even Toyota’s record sales may not be enough to offset mounting uncertainty and market risk, reports Automotive News. Kon took office April 1, succeeding Koji Sato, who became chief industry officer, a new position. In that role, Sato is focusing on the country’s wider auto sector in conjunction with his concurrent job as chairman of the Japan Automobile Manufacturers Association. Kon, Toyota Motor Corp.’s former CFO, is a self-described numbers guy and longtime confidant of Chairman Akio Toyoda. Click here for the full story.
Top Dealership Groups Expand Used-Vehicle Focus as Average New-Car Prices Top $50,000
More dealers are betting on used vehicles as the average price of a new car tops $50,000, pushing many beyond the traditional 1-to-1 used-to-new sales mix. Thirty-one dealership groups surpassed the 1:1 average in 2025, as consumers gravitated toward less expensive vehicles, according to Automotive News’ 2026 list of top 100 dealership groups in used-vehicle sales. That’s up from 27 dealership groups that exceeded the benchmark on the 2025 list.Here’s why: Consumers are grappling with high new-vehicle prices — almost double the average used-vehicle price, according to Edmunds — while dealerships face supply constraints for some models. Now retailers are adapting their vehicle acquisition strategies to compete.“There is no new-car alternative to anything below $30,000,” said Patrick Janes, assistant vice president of vAuto inventory management solutions at Cox Automotive and a former used-car dealership manager. “That has become the new affordability vehicle that consumers are looking for.”Overall, dealership groups averaged 0.94 used vehicles sold per new vehicle in 2025, according to Automotive News’ list.The ratio represents global sales for the few groups that sell internationally, including Group 1 Automotive Inc., Penske Automotive Group Inc., Lithia Motors Inc., McLarty Automotive Group and Servco Pacific Inc. Click here for the full story.
Edmunds Q1 Report Reveals Rising Negative Equity as Affordability Pressures Reshape Trade-Ins
Negative equity is vastly becoming a major pain point in the auto market, with more than 3 in 10 trade-ins now carrying upside-down loans, according to Edmunds. Joining us on the latest episode of CBT Now is Jessica Caldwell, AVP at Edmunds.com, to discuss the rising trend and what it signals for affordability, financing trends, and the broader auto market outlook.What’s driving the trend? According to Caldwell, 30.9 percent of trade-ins currently have negative equity, reflecting the lingering effects of pandemic-era pricing, elevated interest rates, and extended loan terms that continue to ripple through the market. She said the trend stems largely from the vehicle pricing environment during the microchip shortage, when consumers paid above sticker price amid limited inventory. As prices normalize, many of those buyers are now returning to the market with vehicles worth less than their remaining loan balances. Additionally, she notes that scarcity-driven buying decisions also contributed to consumers choosing vehicles that may not have best fit their long-term needs. Click here for the full interview.
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