Auto loan borrowers grow more financially strained, Trump weighs dialing back EV tax credits, Hyundai names new CEO

Hey everyone. Happy Friday — I want to kick things off today by saying thank you. Without your support, your perspectives on the auto industry, and your willingness to share inside scoops with yours truly… none of this would exist. Thanks for being a part of the CDG journey.

Now, let’s get into today’s news.

— CDG

New car inventory just passed 3M for the first time since the pandemic:

A 29% YoY increase... which brought the avg. market day's supply to 85 days.

The biggest driver?

Some automakers and dealers are trying to balance lingering 2023/2024 models with a rush of 2025s.

And you know what that means... the best new car deals of the year are likely right around the corner.

(Data source: Cox Auto)

1. “Financially healthy” auto loan borrowers are in decline

Auto lenders are navigating a growing wave of financial strain among borrowers, according to a J.D. Power study.

• The number of “financially vulnerable” auto loan customers has jumped 11% since 2021, while “financially healthy” borrowers have dropped by 13%.

• Even more troubling — just 1% of vulnerable borrowers report having enough savings to cover six months of living expenses.

With repossessions already spiking and interest rates squeezing affordability, the pressure is mounting for lenders to adapt … (Go deeper: 3 min. read)

2. Trump's plan to cut EV tax credits sparks fears over demand fallout

Donald Trump’s incoming administration reportedly plans to repeal the Biden-era electric vehicle tax credit, potentially shaking up the EV market.

The $7,500 credit has been a key driver of EV adoption, but sources suggest Tesla, led by CEO Elon Musk, supports its repeal, arguing it would hurt competitors more than Tesla itself.

Yet — industry heavy-weights, like the Alliance for Automotive Innovation, are urging Congress to preserve the credits, calling them essential for maintaining the U.S.’s global standing in automotive innovation … (Go deeper: 4 min. read)

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3. Hyundai picks José Muñoz as new global CEO starting Jan. 1

Hyundai has appointed José Muñoz as its first non-Korean President and CEO, effective at the start of next year.

Muñoz’s leadership has already delivered record-breaking sales and profits in North America, but maintaining Hyundai’s momentum in the face of policy shifts and supply chain challenges will be his toughest test yet.

The stakes are high as Hyundai works to cement its position as a top player in the U.S. market … (Go deeper: 3 min. read)

• GM lays off 1,000 employees amid reorganization, cost-cutting.

• Ford penalized $165 million over moving too slowly on a rearview camera recall.

• How auto suppliers are dealing with lower sales.

• Tesla announces 500 kW charging as it finally delivers V4 Supercharger cabinets.

• GM self-driving unit Cruise admits to submitting false report, will pay $500,000 fine.

Thanks for reading everyone.

— CDG