Asbury acquires 33 dealerships for $1.34B, Toyota vows to ramp up inventory, the messy politics around EVs

Hey, everyone. Electric vehicles (EVs) now have a lower market days’ supply (87 days) than their gas-powered counterparts (96 days).

The reason?

Year-over-year growth in incentive spending on new EVs is ~20% higher than ICEs.

And with tax refund season officially here—I expect EV deals to get even sweeter in the coming weeks.

— CDG

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Welcome to The Weekly, your go-to roundup of the top five auto industry headlines of the week. Let’s dive in.

1. Asbury Automotive Group set to buy The Herb Chambers Companies in billion-dollar acquisition

Asbury Automotive Group is making one of the biggest moves in auto retail history. The company is acquiring 33 dealerships from The Herb Chambers Companies—one of New England’s largest dealer groups—in a deal worth $1.34 billion.

• The purchase represents $2.9 billion in revenue, covering 52 franchises and three collision centers.

• Asbury is financing the acquisition with a mix of credit, mortgages, and cash, with plans to close by late Q2 of this year.

• But while Herb Chambers is selling most of his company, he’s not stepping away entirely. He’ll stay on as a Special Advisor and is holding onto Mercedes-Benz of Boston as well.

What they’re saying: Asbury’s CEO, David Hult, says Chambers is an icon in the industry, with a customer-first approach that made his dealerships some of the most respected in the business. And Chambers—reflecting on his 40 years in the industry—says he’s proud to see what he built continue in trusted hands.

(Go deeper: 1 min. read)

Speaking of big moves—February is shaping up to be a surprisingly strong month for car sales. But there’s a tradeoff…

2. Winter storm delays expected to fuel new car sales spike in February

Retail sales are projected to be up 8.1% year-over-year when adjusted for selling days, according J.D. Power and GlobalData. 

The primary reason? A winter storm at the end of January shut down dealerships in parts of the South, pushing those delayed purchases into February’s numbers.

But stronger inventories might be playing an even bigger role. Automakers are handing out deeper discounts to keep buyers coming in, with average incentives per vehicle jumping 23% year-over-year—now topping $3,200.

• The good news? More cars are moving off the lot. 

• The bad news? Dealers are making less per sale as discounts eat into profits. 

And with trade-in values softening, affordability remains a major challenge. March could bring another lift with tax refunds and even more incentives, but at some point, auto retailers will have to find a way to keep buyers engaged without sacrificing too much.

(Go deeper: 4 min. read)

Meanwhile—Toyota isn’t waiting around to see how the market plays out—it’s going all in on inventory.

3. Toyota tells dealers to prepare for more inventory

The automaker is telling U.S. dealers to get ready for more than 20 new, refreshed, or special edition models hitting showrooms in 2025. 

Driving the news: Toyota North America’s head, Dave Christ, says the company is building on its 2024 production of more than 2 million vehicles in North America. 

• And despite some major setbacks—including the Daihatsu safety scandal and stop-sales on key models like the Prius, Grand Highlander, and Lexus TX—Toyota still ended 2024 strong.

• U.S. sales were up 3.7% to 2.3 million units, with electrified models (including hybrids) surging 53.1%, making up 43.1% of total sales. Lexus also had its best-ever sales year.

So—Toyota is doubling down on hybrids and volume, betting that a stronger lineup will keep the momentum going. But after a year filled with recalls and production issues, the real challenge will be scaling up without compromising quality.

(Go deeper: 2 min. read)

At the same time, the Trump administration is taking a closer look at the regulations shaping the future of the auto industry—including EVs…

This is a sign…

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4. Trump’s EPA sends California emission waivers to Congress

EPA chief Lee Zeldin is pushing for a congressional review of three of California’s emissions waivers, including the Advanced Clean Cars II program, which requires all new vehicles sold in the state to be zero-emission by 2035.

Why it matters: More than a dozen states follow California’s emissions rules, and automakers have already spent billions adapting to those standards. If the rules change, manufacturers may have to adjust their production plans yet again—potentially rolling back investments in electrification.

• And the Trump administration isn’t stopping there. It’s also taking a closer look at federal EV incentives, including the $7,500 tax credit that has been a key driver of EV sales. 

• While the president can’t eliminate the credit outright, the IRS could tighten eligibility requirements, limiting which automakers and buyers qualify.

For carmakers—this could be a major setback. EV sales have depended on a mix of state mandates and federal incentives to keep prices competitive. If both start to erode, automakers will have to decide: absorb more costs or scale back.

But not everyone believes incentives are the deciding factor in EV demand.

(Go deeper: 4 min. read)

Tesla—for example—built its dominance long before federal tax credits were widely available—proving that consumer interest is there…

5. Personal politics are heavily influencing EV buying decisions

Speaking Tesla—a survey from the EV Politics Project found that Tesla’s reputation among Democrats has taken a hit, as CEO Elon Musk leans into GOP politics.

But the thing is—only 20% of Republican voters are seriously considering an EV, and 34% say they never will.

• Meanwhile—Democrats are buying EVs at five times the rate of Republicans.

• Ford and GM are positioning themselves as politically neutral alternatives—a strategy that may help them sidestep the partisan divide.

But here’s where things get even murkier. 

A pre-election survey from AutoPacific found that—at the time—EV interest was more-or-less evenly split between Democrats and Republicans. But since then, Trump has pledged to shake up EV policies, adding more uncertainty to the market.

And that leaves automakers in a tough spot. If they can’t make EVs feel as politically neutral as a pickup truck in the Midwest, they risk alienating half the market—no matter how good the technology gets.

(Go deeper: 3 min. read)

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• Used car market races into 2025, but price relief may be short-lived.

• China’s high-tech EVs are eating Porsche’s lunch.

• TikTok plays up its auto power with new ad channels.

• Rivian’s R2 aims for the mass market—but can the automaker deliver?

• Ford slashes stock bonuses as cost-cutting deepens.

That’s a wrap for now – make sure you’re following along on X, LinkedIn and IG for more real-time updates.

Thanks for reading. Hit reply and let me know if you found this week-in-review valuable or have any feedback. I’ll see you next weekend.

— CDG

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