Dealer inventory stacks up, Ford’s profit play, GM’s social media win

Hey, everyone. The Fred Beans pod we released on Tuesday is on fire…

Fred has over 65 years in automotive retailing and today, he runs 27 dealerships in PA and NJ.

He shared wisdom, learnings, and secrets behind all his success — the conversation transcended automotive. Don’t miss it.

—CDG

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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. July car sales grow modestly after Q2 headwinds

July was a mixed bag for automakers. Although, industry-wide car sales improved by roughly 0.5% (for brands that report on a monthly basis).

Why this matters: The auto industry was counting on a strong July to compensate for the CDK Global cyberattack in June. Instead, the market leveled out a bit compared to earlier this summer, but sales are still way ahead of last year's overall.

Sales highlights:

• Honda had a strong month, selling 120,737 units for an increase of 8%.

• Toyota sales slumped 8.3% in July to a total of 153,040 units.

• Together, Genesis, Hyundai and Kia sold 138,976 units, which is down 3.3% year-over-year.

• Ford sales were stable, falling behind last year’s pace by only 0.8% with 164,585 units sold.

High interest rates and elevated prices continue to weigh on consumer demand, causing uneven sales performances and imbalanced inventory across brands…

2. New car days' supply skyrockets in July

Big picture: July new car inventory averaged 2.94 million units, according to Cox Automotive. Slightly down from June’s total of 2.96 million, but 1 million units higher than this time last year.

Driving the news: Dealerships felt the pinch with slower sales last month. The average days' supply for the industry hit 100 days by the end of the month, up 24 days from June, and even peaked at 116 days in early July, marking a four-year high.

By the numbers: Asian automakers continue to see the lowest inventory levels in the industry. Toyota, for example, has less than 30 days of supply.

Yet, Stellantis’ days’ supply levels continued to outpace the car industry, exceeding 150 days across all of the company’s mass-market brands.

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Ford isn’t immune to weakening sales or surpluses either, but there is one side of the business that has emerged as a profit powerhouse…

3. Ford’s not-so-secret profitability weapon

Why it matters: Ford’s Pro Division serves commercial customers with work-ready vehicles, service, software, charging, and financing to improve fleet operations. Over the past 3 years since its creation, it has become a multibillion-dollar success.

By the numbers:

• Ford Pro has generated $18.7 billion in adjusted earnings and $184.5 billion in revenue since 2021.

• Ford holds a 30% market share in fleet sales, with commercial volumes up 7% this year, reported S&P Global Mobility.

Ramping up: Ford Pro's success is mainly due to the strong performance of its Super Duty trucks and Transit vans. The demand for these vehicles is so high that they can't keep up with production.

Bottom line: There is a growing need for businesses and other commercial customers to upgrade their vehicles as the in-use fleet now averages 17.5 years old.

The automaker's focus on commercial vehicles is paying off big, even as financial pressures mount for consumers…

4. Rising delinquencies cast shadow over auto lending

Driving the news: The latest data from TransUnion shows that auto loan originations took a dip in Q1 to $6 million, down 0.4% year-over-year.

Why it matters: Most consumers today are more aggressively mitigating their financial risks and it’s reflected in the way they are financing cars.

Zooming in: More buyers are paying cash to avoid high interest rates. But for those who can't, a slowing economy, rising unemployment, and higher borrowing costs are squeezing wallets, leading to more missed payments.

By the numbers: According to the New York Fed, around 8% of auto loan balances were newly delinquent (30 days late) in the second quarter.

What it means: With the labor market starting to bend, auto lending will probably see more delinquencies, especially in the subprime segment. Rising loss severity rates are bad news for auto-backed investors and are making lenders tighten up.

On a lighter note…

5. GM CEO Mary Barra appears in dealer's viral TikTok series

Catch up quick: Mohawk Chevrolet’s TikTok series, "The Dealership," just featured General Motors CEO Mary Barra and other top execs in its latest episode, adding star power to its viral mockumentary.

Why it matters: The automotive industry often stumbles in digital marketing, especially with younger audiences but new creators are driving real engagement on social media.

Driving the news: The series, inspired by "The Office," has gone viral, amassing millions of views. In the latest episode, GM execs play along with creative pitches for new model names, showcasing the power of playful, authentic content.

Bottom line: Mohawk Chevrolet’s hit series is a masterclass in how to connect with today’s consumers.

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• Nissan offers buyout to salaried employees after a rough quarter.

• ChargePoint unveils universal 'Omni Port' EV charging plug.

• Rivian narrows its losses in Q2 as production ramps up.

• Wholesale used car prices jump in July as supply tightens.

• Chinese car software to be banned under new White House proposal.

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.

• Edmunds is looking for an account executive in Seattle.

• Braman Miami is seeking an experienced auto technician to work on Hyundai models.

• Elk Grove Subaru is seeking an Internet Sales Consultant to work in California.

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

🛑Real quick…

That’s a wrap for now – make sure you’re following along on X, LinkedIn and IG for more real-time updates.

—CDG

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