Dealer Sentiment Sinks as Tariff Rush Fades, Tax Credits End
Dealership professionals showed near-record levels of unhappiness with their business and consumer traffic during the fourth quarter, but their perspective is colored by the absence of buyers snapping up vehicles to beat tariff and tax credit changes, Cox Automotive analysts said Dec. 2. The industry was dissatisfied with their markets and consumer traffic in Cox Automotive’s latest quarterly Dealer Sentiment Index survey — second only to their weak sentiment at the start of the COVID-19 pandemic, reports Automotive News. The fourth-quarter study ran from Oct. 22 to Nov. 6 — notably during the federal government shutdown from Oct. 1 to Nov. 12 — and received responses from 492 franchised dealers.“This year seems way worse than last year,” a Ford dealer in the Midwest told Cox, describing a “lack of sales in these slower months.” Dealers blamed the economy and a lack of consumer confidence for slowing business, but they’re really just coming off the high of the year’s front-loaded sales, according to Cox. Click here for the full story.
Joe Serra Details Leadership Transition, Industry Outlook and $6M Donation
Serra Automotive Chairman Joe Serra joins us on today’s episode of CBT News’ Inside Automotive to outline the group’s operational strategy, succession planning, and industry expectations while discussing a recent $6 million philanthropic contribution intended to strengthen cardiac care in Michigan. Serra and his wife pledged the gift to McLaren Flint Hospital, acknowledging the facility’s role in treating his ongoing heart issues and its importance to the surrounding community. Although the contribution will be distributed over time, it is intended to support the hospital’s efforts to elevate its cardiovascular program to a more advanced level of care. While the couple usually keeps their charitable initiatives private, Serra mentioned that the hospital encouraged them to publicly announce the donation to raise awareness and inspire additional community support. He described the pledge as part of a later career stage focused on giving back. Serra also elaborated on the company’s leadership transition, noting that his son, Matt, now oversees day-to-day operations for the group’s 62 dealerships, which represent 27 brands. Responsibilities were formally divided several years ago, positioning Matt to manage operational decisions, partner relations, and overall store performance. Click here for the full interview.
Trump Administration Lowers Fuel-Economy Rules for Carmakers
President Trump on Wednesday said he plans to roll back federal fuel-economy rules for passenger vehicles, his latest move to relieve the U.S. auto industry from mandates to build cleaner, more-fuel efficient cars. According to The Wall Street Journal,the administration’s move comes months after Congress and the Trump administration this summer essentially nullified the mandates — known as Corporate Average Fuel Economy rules, or CAFE—by eliminating fines for violating them.Under the changes, the federal government would require an average of 34½ miles a gallon for vehicles by model year 2031, down from the 50.4 miles a gallon standard set by the Biden administration. It also does away with a system in which automakers can buy credits from competitors to offset fines, a setup that proved to be a boon for electric-vehicle maker Tesla. Lowering the standards would enshrine into federal law more lenient miles-per-gallon targets for automakers. It could make it harder to return to tougher standards since doing so would require more than simply reinstating penalties. Click here for the full story.
Carter Myers Automotive Moves into Maryland with Toyota and Hyundai Acquisitions
Carter Myers Automotive in October acquired Toyota and Hyundai dealerships in Maryland. The acquisitions were strategic, Liza Borches, president and CEO of Carter Myers Automotive, told WardsAuto in a Zoom interview. “There was a real purpose for us to go into that market,” she said.They are the dealership group’s first acquisitions in Maryland, but the Virginia-based CMA had already begun building a dealership there after being awarded an open point by American Honda, reports WardsAuto.The business likes to have three-to-five stores in each market to allow for career growth for its employees without having to relocate, she said. That number of dealerships also creates economies of scale for used cars, reconditioning operations and back office functions such as marketing and accounting, Borches said. The Honda dealership is due to open in 2026. With that in mind, CMA started talking with other dealers in Lexington Park. They discovered Peter D’Arista — the owner of the Toyota and Hyundai dealerships — and his general manager, who was a minority owner, were looking to retire after 30 years. Click here for the full story.
What Does a Luxury Car Even Mean These Days?
New cars are more expensive than ever, with average prices in the US exceeding $50,000 for the first time in September, up 3.6 percent from 2024, according to auto research company Kelley Blue Book. Luxury cars are pushing that growth, according to KBB. The average price of a vehicle from Porsche AG is $115,407, the highest of any standard-production automaker. A Ferrari, on average, costs four times that amount, reports Bloomberg. But luxury is slippery to define when you can spend $42,000 on a Mercedes-Benz or $114,000 on a Ford pickup truck. In a world of tailored cashmere socks and gold-plated toothbrushes marketed as luxury experiences, the term has become so ubiquitous, it has almost lost all meaning. For cars, there’s no correlation between luxury and price; it’s not strictly about sheer horsepower or loads of carbon fiber. So I spoke with executives at brands including Bentley, Bugatti, BMW, Pagani and Rolls-Royce to hear how they define luxury in the modern age. What became clear is that it encompasses more than former glory, as once-prestigious brands like Maserati descend into poor resale values and Jaguar remains comatose. Click here for the full story.
Federated Insurance’s Claim of the Month – Don’t Let Lithium-Ion Batteries Burn Your Business
At the end of each workday, it was standard practice to plug in the tools and leave them charging overnight. One night, a battery malfunctioned while charging, overheated, and caught fire. The flames spread to nearby batteries, causing them to combust as well. The fire quickly grew, engulfing the dealership. The damage from the fire was extensive. The service department was completely destroyed, and the fire spread to the office space and sales floor. Operations at the dealership came to a halt for weeks. In addition to the structural damage, vehicles for sale and customer vehicles left for repairs were also damaged. CLAIM AMOUNT: $7.4 Million Risk Management Advice to Consider:
• Avoid Overcharging Batteries: Do not leave batteries plugged in overnight or unattended. Unplug devices once they are fully charged.
• Store in Safe Conditions: Keep batteries in a cool, dry, and well-ventilated area. Avoid exposure to extreme heat, cold, direct sunlight, or freezing temperatures.
• Inspect Batteries Regularly: Check batteries for signs of swelling, leaking, overheating, or other damage. Do not use damaged batteries. • Use High-quality Equipment: Purchase batteries tested by a nationally recognized testing laboratory. Only use chargers supplied with your device or compatible equipment from reputable manufacturers. Click here to learn more.
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Waymo’s Self-Driving Cars Are Suddenly Behaving Like New York Cabbies [The Wall Street Journal]
Trump Saw These “Really Cute” Cars in Japan and Now Wants Them on US Roads [Carscoops]
European Union May Not Ban Combustion Cars After All Car and Driver]