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Welcome to The Weekly, a roundup of the top five auto industry headlines of the week.
Bankrupt auto supplier First Brands sues ex-CEO for allegedly misusing company funds
Earlier this week, bankrupt auto supplier First Brands escalated its restructuring fight, suing founder and ex-CEO Patrick James for allegedly misusing company funds.
The federal complaint accuses James of securing billions in financing by misrepresenting the company’s finances, then diverting hundreds of millions to himself and related entities. When First Brands filed for bankruptcy in September, it allegedly had just $12 million in cash despite reporting roughly $5 billion in annual sales.
For now, the lawsuit is a core piece of the turnaround effort, alongside more than $1.1 billion in approved bankruptcy financing and a newly ordered $7 million independent investigation into the company’s past financial practices.
Bottom line: What investigators uncover and what funds can be clawed back will determine whether First Brands can emerge as a viable supplier or become a case study in governance failures.
Automaker parts markups are driving service customers to independents, warns Dave Rogers
Automakers’ escalating parts prices are creating a new retention problem in fixed ops—one that even strong service departments can’t out-execute, according to Piazza Auto Group’s fixed ops director Dave Rogers.
OEM part costs have climbed for four straight years, pushing post-warranty customers toward independents. He even pointed to examples like a $450 Honda alternator vs a $250 aftermarket equivalent.
His point: Even competitive labor rates can’t overcome OEM markups that nearly double the ticket.
That’s why more dealers are leaning on aftermarket options to stay in the fight.
Because, as Rogers put it, "We got to give customers an option and you hate to say it, but I'm not losing a job just because I can't be competitive."
Zooming out: With OEM pricing unlikely to ease, dealers are widening their parts playbook, mixing OEM and aftermarket strategically to keep jobs in-house and maintain loyalty where they can.
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Wholesale used-car prices hold steady heading into year-end
Wholesale values aren’t following the usual late-year script. The Manheim Index ticked up to 205.0 in mid-November, up 1.1% from October and barely below last year, despite seasonal norms calling for a decline.
The findings: Depreciation remains muted, with 3-year-old MMR down just 1.0%, retention at 99.1%, and sales conversion climbing to 56.5% as clean cars continue to draw strong money.
Cox Automotive’s Jeremy Robb said softer October trends have given way to firmer November demand, aided by slightly improved retail sales and easing loan rates. Dealers aren’t likely to pay more now, he noted, but those heading into spring under-stocked should expect earlier-than-usual price pressure.
Auction veteran George Pero added that while the market feels unpredictable, history still rhymes. And most current trends mirror those of prior years, just with different influencers.
Big picture: While segments like compact and mid-size sedans remain pockets of opportunity, the bigger lever is execution, aka buying cars you can “tell a story about,” and thinking 30–60 days ahead.
Volkswagen shifts EV development to China, claiming it can cut costs by up to 50%
Volkswagen is doubling down on China as its new EV development base by shifting major engineering work outside Germany for the first time.
The automaker says its China hub can cut EV development costs by up to 50% and shorten timelines by nearly a third, thanks to lower labor costs, faster validation, and a massive new innovation center in Hefei with 100+ advanced labs.
On top of that, it’s part of a broader push to release ~30 EVs in China over the next five years and regain ground in a market where VW isn’t even in the top 10 BEV/PHEV producers, despite stronger EV momentum in Europe and the U.S.
The signal: VW is leaning on China’s speed and scale to close its competitive gap and sharpen its global EV pricing strategy as the industry heads into an even fiercer cost war.
Major automaker CEOs summoned to Senate hearing on safety tech requirements
Senate Republicans want top U.S. auto CEOs in the room this January, arguing that new federal safety mandates (like automatic emergency braking and rear-seat child reminders) are unnecessary add-ons driving up vehicle prices.
The hearing, set for Jan. 14, will bring in leaders from GM, Ford, Stellantis, and Tesla to explain the cost impact, even as the average new-car price hovers around $50,000—up from ~$38,000 during COVID. And the politics are already loud, with California Gov. Gavin Newsom blasting the move on X.
Still, while some lawmakers claim the rules go too far, consumer appetite for safety tech keeps rising. A recent AutoPacific survey also shows strong interest in semi-autonomous highway features, rear AEB, adaptive cruise control with lane centering, and growing trust in systems that automatically prevent accidents.
Looking ahead: If Washington pushes OEMs to scale back safety content, dealers could be stuck navigating feature confusion, more challenging value conversations at $50K price points, and more pressure to spec and position inventory carefully so buyers still feel like they’re getting modern tech for the money.
Missed yesterday’s episode of Daily Dealer Live?
Presented by:
Brink on Growing A Multi-State Group, Bennett on Leadership Development
Featured guests:
Nolan Brink, Multi-Store General Manager at Jim Shorkey Auto Group
Matt Bennett, VP of Graduate and Professional Studies at Northwood University
Gurley Leep Automotive acquires Hyundai of Noblesville from Penske Automotive.
