Hey, everyone. We just launched podcast summary reading companions written by me (not AI) that condense the 10 lessons learned from each episode into a quick and efficient read. It’s a brand new way to consume the podcasts — let me know what you think… :-)

—CDG

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Car Dealership Guy Week-in-Review

Each week, I curate the top 5 automotive industry headlines based on the topics CDG readers engaged with the most on social media. Let’s get started.

1. BYD debuts new hybrid pickup in Mexico

At a glance: Chinese EV leader BYD is stepping up its game in the Latin American market with the debut of the Shark plug-in hybrid pickup.

• The Shark will start at 899,980 pesos, or about $53,400. 

• It is a midsize truck with a plug-in hybrid powertrain that can cover over 500 miles.

• It can also drive 62 miles on electric power only before needing to be charged again.

The intrigue: It's rare for a Chinese brand to unveil a new vehicle outside of its home market. The move shows how important Mexico is to BYD despite all the chatter about Chinese EVs in North America. 

• While sales growth has slowed in China, the market share for Chinese brands has grown meaningfully in Mexico. 

• Chinese brands account for about 87% of EV sales in South America and 20% in Mexico.

What our readers say: 

The BYD Shark’s long range and low prices could hurt Detroit and Toyota's sales in Mexico and Latin America.

But the Shark is likely not coming to America any time soon and here’s why…

2. President Biden builds on Trump’s Chinese tariffs with a focus on EVs

Big picture: The Biden Administration announced a steep increase in new tariffs on EVs, semiconductors, solar equipment, and more goods from China. 

Driving the news: The new tariffs on Chinese EVs increased from around 25% to about 100%.

(FYI - I spoke about this on CNBC this week. Check it out here)

• This move aims to counter any threats to U.S. jobs and national security due to China's manufacturing "overcapacity."

• It also intends to prevent an ocean of low-priced Chinese EVs from entering the U.S.

China’s response? Pissed – with a hint of trolling. 

"China can take the moral high ground," said Wang Huiyao, founder and president of the Beijing-based Center for China and Globalization, a think tank. "It doesn't play around with those who break international standards and norms."

"What does not kill you makes you stronger," Xinhua said in a commentary on the U.S. tariffs. "It seems the famous quote applies to China's technology companies."

What our readers ask:

I got you Gordon – here’s what I found after some digging. 

Between the lines: Despite the massive number of Chinese car exports globally, the U.S. has effectively curbed Chinese EVs from entering its market through existing tariffs.

• In Q1, Volvo-backed Geely was the only Chinese automaker to export to the U.S. with 2,217 cars.

The big question remains: Will Chinese EVs enter through Mexico (via USMCA)? This is the concerning loophole remaining.

Looking ahead: While effectively banning Chinese EVs is good for American automakers, affordability is still a very real pain point for car buyers. China has shown it can manufacturer EVs at far less cost. Maybe the current administration doesn’t want to save the planet this quickly, after all… ;-)

• A survey by AlixPartners found that among prospective EV buyers, 73% said they would consider a Chinese EV if it were 20% lower than a U.S. EV.

That’s not surprising given it was tougher to afford a new car last month…

3. New cars were less affordable in April

Several new car affordability factors turned against consumers last month, straining wallets in an already high-priced economy…no bueno.

What's happening: The average monthly payment for a new car rose to $762 in April, up 1.8% since March. 

• In April, average transaction prices (ATP) rose 2.2.% to $48,510.

• The average incentive package was 6.3% of the ATP, a drop from March and the first time in six months that incentives declined…OEMs need to figure this out.

What our readers say: 

Even with these challenges, affordability has improved in certain segments thanks to an increase in supply…

4. New car inventory is up, but prices are stuck in high gear

Overview: After years of vehicle supply constraints, new car inventory levels are improving a lot compared to last year. But is it enough to bring prices down?

New car inventory levels increased by 35% year-over-year in April, but were down 3.5% from March. Yet, inventory is still 1 million units shy of pre-pandemic levels.

• The average new car price remains relatively flat compared to both last year and last month. But compared to 2019 levels, new car prices are still inflated by a staggering 30%.

• Inventory skewed heavily toward $50,000+ vehicles at 41% market share. The under $30,000 category had year-over-year growth of 80% (!!!)

While inventory is picking up, there are massive contrasts in availability from brand to brand. While some highly in-demand models are selling in as little as three weeks, others are staying on dealer lots for over six months…

5. The fastest and slowest-selling cars so far this month

Vocab time: Basically, market days' supply measures how fast a vehicle is likely to sell based on present inventory levels and historical sales data. 

Lower days’ supply = faster selling.

Higher days’ supply = slower selling.

Which brands are flying off the lot?

• Toyota dominates the list of fastest-selling cars, with six models cracking the top 10 list…I see you Toyota Sienna 👀

• The Honda Civic ranks eighth with a 38 days’ supply.

• And the Ford Maverick just makes the top 10 with 48 day’s supply..

With the exception of Land Rover, the top 10 fastest-selling new vehicles list all start at under $40,000…shocker. 

Which brands are overstaying their welcome?

• Stellantis is facing some serious headwinds. Four of the ten slowest-selling cars are Jeep, Ram, or Dodge.

• The Volvo C40 replaced the Mach-E as the slowest-selling EV, with a 386 days’ supply. 

• The Blazer EV, which Chevrolet just recently started selling again, has a 274 days’ supply.

Always so much going on in the automotive industry – make sure you’re following along on X, LinkedIn and IG/FB for real-time updates.

We’ve got tons of great jobs hitting the CDG Job Board right now. Here are some standouts for anyone looking for their next move.

• Feel at home in the service drive? Tom Whiteside Chrysler Dodge Jeep Ram, near Columbus, OH, is hiring an FCA Technician.

• Sales more your game? S&P Global is looking for a Sales Executive-retail.

• SaaS company BizzyCar has put the call out for account executives in Los Angeles and Orlando (remote).

Looking to hire? Add your roles today—it’s 100% free.

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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