Dealer outlook dims for 2025, car buying was trickier in Dec., automakers report strong year-end sales

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Hey everyone. I shouldn’t laugh but…

A Los Angeles man nearly missed his flight after a Waymo robotaxi trapped him by endlessly circling a parking lot on his way to the airport.

He reportedly struggled to get the car to pull over using the Waymo App and thought the car had been “hijacked.” 

Luckily this didn’t turn out to be a dangerous situation —

And while I still think robotaxis have their time and place in the future of mobility — there’s undoubtedly some bugs to work out.

— CDG

The number of recalled Ford vehicles plummeted in Q4 2024:

Last quarter — Ford recalled only 470,000 vehicles — for a total of 4.5 million in 2024.

Still high overall — but nearly 50% fewer than in 2022.

Are Ford’s promised efforts to improve quality actually materializing?

(Data source: BizzyCar)

1. Auto dealers cautiously eye an uncertain year ahead

Despite projections of accelerated new vehicle sales over the next year — dealers are feeling more cautious about the outlook for 2025.

• A new Kerrigan Advisors survey shows 43% of dealers expect profits to decline — the highest level in four years — while only 14% anticipate earnings growth.

• Hybrids are viewed as a bright spot, with 73% of dealers seeing them as a profit driver, but 68% are concerned about EVs and costly facility upgrades linger.

• Trust in automakers is also playing a role, with Toyota leading the pack and Stellantis trailing far behind.

Bottom line: Dealers are hopeful about sales but are managing expectations when it comes to their bottom lines … (Go deeper: 3 min. read)

2. Car buying was trickier in Dec., but satisfaction remains high

December saw customer satisfaction dip slightly, with ease of purchase ratings falling to 88% from November’s 91%, according to CDK Global.

While frustrations around price negotiations, trade-in values, and financing grew, the overall satisfaction score remains near all-time highs.

Faster transactions and improved inventory helped balance the scales, with more shoppers finding their desired vehicles in stock and completing purchases more efficiently.

Now — dealers have an opportunity to build on strong fundamentals by addressing pain points in pricing and financing … (Go deeper: 3 min. read)

The new AI texting follow-up tool from Foureyes is a game-changer. And that buzz is building with dealers ahead of #NADASHOW.

But it’s not the repetitive and pushy AI messaging that gets ignored.

Instead, prospects get relevant information about the vehicles they've shopped on your site – such as price drops, new inventory on the lot, and answers to their specific questions.

Book time with Foureyes at NADA, and get your first 30 days for free!

3. Rising incentives fueled a strong year for U.S. auto sales in 2024

December also brought a surge of car shoppers to dealerships, helping automakers close out 2024 with nearly 17.2 million new vehicle sales.

• General Motors led the pack, selling 2.7 million vehicles, a 4.3% increase, with record-breaking EV sales in the last quarter.

• Toyota wasn’t far behind, moving 2.33 million units and surpassing 1 million electrified model sales for the first time, up 53%.

• Ford and Hyundai/Kia also saw strong performances, with Ford’s hybrid sales up 40% and Hyundai/Kia setting new records.

• On the flip side, Stellantis struggled, with a 14.6% drop in sales, but they’re betting on new hybrid and EV models to rebound in 2025.

(See more automakers)

• Stellantis Chairman John Elkann urges unity in message to employees.

• U.S. self-driving car companies seek boost under Trump.

• Some foreign carmakers' vehicles are more 'American' than Detroit Three.

• VW says its cars will get Supercharger access and adapters in June (Updated).

• The Sony-Honda Afeela EV will start at $102,900, arrive in mid-2026.

Thanks for reading everyone.

— CDG