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Hey everyone,
Earlier this week, we put together CDG's top 5 auto industry stories of 2025.
From tariffs, EV whiplash, the hybrid renaissance, and tougher state rules, we covered it all…
— CDG
First time reading a CDG Newsletter?
Welcome to The Weekly, a roundup of the top five auto industry headlines of the week.
Tensions boil as Colorado clears path for Scout Motors’ direct-to-consumer sales model
Earlier this week, CDG News covered Colorado’s decision to approve Scout Motors’ ability to sell vehicles directly to customers, and franchise dealers are paying close attention.
What we know: The Volkswagen-backed EV brand got a dealer license in the state, even as it’s being sued in California and Florida over whether that sales model breaks franchise laws.
The issue, as several dealer groups voiced, is the ruling could open the door for other automakers to bypass their dealer networks, setting up fights state by state.
Covert recordings reveal depths of Tricolor's auto lending deceit
Also this week, newly released recordings gave prosecutors their clearest look yet at what they say was happening inside Tricolor as its auto-lending business began to fall apart.
According to a federal indictment, former CEO Daniel Chu discussed making up explanations, ranging from fake policy changes to “systems issues” after lenders flagged manipulated loan data.
In one call, prosecutors say Chu even referenced Enron, arguing that lenders would want to avoid the reputational fallout of a public scandal.
From the filings: Chu was recorded, saying, “Enron obviously has a nice ring to it, right? <laugh>, I mean, Enron, Enron raises the blood pressure of the lender when they see that <laugh>. It, it has to, right? I'm not- [...] Cause who wants to be thrown in the category?"
As the case moves forward, these recordings are likely to make lenders more cautious about oversight, risk controls, and who they choose to fund, especially in subprime auto lending.
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Security director for Zeigler Auto Group warns of growing dealership fraud risks
Recently on Daily Dealer Live, we had Karianne Thomas from Zeigler Auto Group on the show, and her message was clear: dealership fraud is getting smarter and more frequent.
She was originally brought in after 60 vehicles were stolen across Zeigler’s stores, and while theft has dropped sharply, she says fraud is now the daily battle.
That’s because, as Thomas explained, criminals are using synthetic identities, fake paydowns, and rushed end-of-week deals to slip cars out the door before lenders can react.
Her takeaway for dealers: The tools matter, but it’s the people on the desk who have to slow things down when something feels off.
Higher-end vehicles make up majority of discontinued models for 2026
Lately, automakers have been quietly trimming their lineups, and it turns out most of the cuts are happening at the high end.
The findings: Of the roughly 27 models discontinued heading into 2026, about 20 are premium or luxury vehicles, many priced well above the $50K average transaction price.
It’s a sign brands are backing away from “premium for premium’s sake,” along with some EV and sedan bets that didn’t move the needle.
And for dealers: That shift means thinking harder about how to merchandise what’s left, plan for parts and service on sunsetting models, and use used inventory to fill the gaps.
Dealers face year-end inventory glut as 2024/2025 models pile up
As 2026 models roll in, a lot of dealers are staring at a pileup of leftover 2024 and 2025 inventory.
New iSeeCars data shows some nameplates sitting with 80% or more carryover stock, putting real pressure on stores to clear space before year-end.
That urgency is turning into opportunity for buyers, especially when automakers layer in aggressive December financing and warranty-backed peace of mind.
Bottom line: It’s a balancing act at the dealer level, and the sweet spot is moving aging metal fast without blowing up floorplans or turn targets.
