Auto industry pumps $1.2T into U.S. economy, Trump’s tariffs coming Feb 1., Nissan plans big job cuts

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Hey everyone. New car supply is rebounding in a big way—but not every brand has the sales velocity to keep dealership inventory manageable.

Here are the top 5 slowest-selling cars according to a CarEdge analysis of market days’ supply:

Dodge Charger
Audi A3
Chrysler Voyager
Alfa Romeo Giulia
Jaguar XF

— CDG

1. America’s auto industry: A $1.2 trillion economic engine

A new report from the Alliance for Automotive Innovation (a lobbying group representing major automakers) is putting real numbers behind just how much the auto industry fuels the U.S. economy.

• The sector contributes $1.2 trillion annually, making up nearly 5% of U.S. GDP.

• It’s also a massive jobs creator, paying out $730 billion in wages and supporting over 10 million workers.

• And when it comes to tax revenue, the industry delivers $340 billion a year—more than what the federal government collects from corporate income taxes.

Bottom line: The auto industry isn’t just big—it’s a pillar of the U.S. economy … (Go deeper: 2 min. read)

2. Automotive groups brace for 25% tariffs on Mexico, Canada

Starting February 1, the Trump administration says it will enact a 25% tariff on auto imports from Mexico and Canada—a move he’s been threatening it for weeks. And now the auto industry is bracing for impact.

The problem: North America’s supply chain is so interconnected that some parts cross borders multiple times before they even make it into a finished vehicle. And every crossing could mean another tariff, compounding costs at each step.

On top of that—Mexico and Canada will likely hit back with tariffs of their own, adding even more pressure … (Go deeper: 4 min. read)

Courtesy transportation is no longer a nice-to-have.

It’s a need-to-have.

A 2024 Car Dealership Guy poll on X found that 31% of respondents prefer an Uber ride to get home when dropping off a car at the dealership.

With Central from Uber for Business, you can request on-demand courtesy rides for your customers, even if they don’t have the Uber app. Coordinate one-way or round-trip rides, monitor trips in real time, set spend caps, and generate reports in one dashboard.

Uber for Business is an easy way to provide an experience customers love, while reducing the costs associated with maintaining shuttles and limiting the liability of loaner vehicles.

3. Nissan plans U.S. workforce cuts, delays Honda merger details

Nissan is making deep cuts to stay afloat, slashing shifts, offering buyouts, and scaling back U.S. production by 25%.

The automaker is aiming to cut up to 1,500 jobs at its Tennessee and Mississippi plants—part of a broader plan to remove 9,000 jobs globally and trim $2.6 billion in costs.

The urgency? Nissan’s profits collapsed 90% in the first half of 2024, raising fears of bankruptcy.

Now, the company is betting on a potential merger with Honda to stabilize, but negotiations are dragging. Honda, which managed to offset its own profit dip with stronger sales, is pushing Nissan to restructure more aggressively before sealing the deal … (Go deeper: 3 min. read)

• Jaguar Land Rover posts record margin after U.S. replaces China as top market.

• 25% of used-car buyers in negative equity position.

• Tesla announces third Megafactory as competition heats up.

• AI is coming for your car, whether you want it or not.

• After robotaxi failure, GM software bet turns to driver assistance.

Thanks for reading everyone.

— CDG