Carvana sets industry record, EU ups tariffs on Chinese-made EVs, Stellantis posts Q3 revenue slump

Hey everyone. By now, you’ve probably heard — Scout Motors is making waves with plans to sell its electric SUV and pickup truck directly to consumers — a hit to VW dealers that’s already sparking talk of legal battles.

And it got me thinking… why are direct-to-consumer sales gaining steam, and what’s driving consumers away from dealerships?

To find out — read my full breakdown here.

— CDG

Auto loan rates aren't budging... for now:

According to Cox Auto, the average used car loan rate is at 13.90%, while new is at 9.35% — still hovering near 15-year highs.

The good news? The Fed's rate cut last month (combined with plans for more) could drop overall average rates a full 1% by tax season next year —

Easing affordability pressures and likely prompting more immediate rate incentives from automakers.

(Data source: Cox Auto / Jonathan Smoke)

1. Carvana sets industry record two years after bankruptcy fears

Carvana just posted a blockbuster Q3, surprising Wall Street and boosting its outlook for 2024.

The online retailer is riding high, with stock hitting a 52-week peak and confidence in even stronger sales next quarter.

After facing near-bankruptcy during the used car market crash, Carvana’s turnaround shows its staying power, challenging anyone who thought it was down for the count … (Go deeper: 3 min. read)

2. EU hits Chinese-made EVs with higher tariffs

The EU is turning up the heat on Chinese EV imports, imposing tariffs as high as 45.3% to counter what it sees as unfair competition from lower-cost Chinese models.

The move has sparked a fierce response from China, with trade groups and automakers labeling the tariffs as “protectionist” and even gearing up for legal battles.

With tensions high, China’s commerce ministry is calling for a resolution to prevent further escalation … (Go deeper: 2 min. read)

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3. Stellantis Q3 revenue slumps as it cuts dealer inventories

Stellantis saw a steep 27% revenue drop in Q3, hit by shipment challenges, pricing issues, and a lineup that doesn’t quite match demand.

With U.S. inventories slashed by 80,000 units this quarter, Stellantis hopes to ease dealer frustrations, yet dealers are still struggling with high prices and fewer affordable models, leading to steep discounts that cut into profits.

Adding to the pressure, the UAW is pushing Stellantis to safeguard jobs, even as the company scales back production on key models to adapt to slower sales … (Go deeper: 2 min. read)

• Volkswagen to cut wages after poor Q3 earnings.

• Stellantis recalls 33,000 Ram trucks over disabled stability controls.

• F-150 Lightning production to go on hiatus for the remainder of 2024

• Toyota and Suzuki partner on a new electric SUV.

• Hyundai teases electric Ioniq 9 SUV.

Thanks for reading everyone.

— CDG