EV leases risky for automakers, wholesale vehicle demand, new recall alerts

Hey everyone. The new car market is experiencing a shakeup. Q2 sales numbers show that consumers have a growing desire for smaller, compact cars over big SUVs and pickup trucks. Is this a temporary blip or signs of more to come? I talk all about it in my newsletter that went out this morning. Catch it here if you haven’t already.

— CDG

1. Automakers playing dangerous game on EV leases warn experts

Aggressive lease offerings can be found across multiple brands and models this year and so far, they appear to be a driving force in EV adoption rates. Roughly 35% of all electric cars financed during Q1 were leased.

But experts warn that EV deals may be undermining automaker revenue … Read more

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2. Recall roundup: Quality issues persist for Stellantis, Hyundai, BMW

Auto recalls continue to be a thorn in the side of automakers, dealers, and consumers.

By the number: Roughly 36 million recalled vehicles were repaired every year between 2013 and 2023, up 110% from the previous decade.

In just the past week, almost 800,000 car owners across three car brands will be getting recall notices in the coming months. Here are the models affected … Read more

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3. Wholesale vehicle demand heats up so far in July

The wholesale car market is showing signs of moderating. In the first 15 days of July, wholesale used vehicle prices reversed course from last month and increased by 1.8%.

What it means: A pullback on factory discounts last month and stable (but elevated) new car prices are pushing more car buyers to the used car market. To satisfy this demand, more dealers are shopping for wholesale units, but a decline in lease maturities could push prices even higher… Read more

• Volvo Cars blames EU tariffs as it cuts 2024 sales forecast.

• Tekion Corp raises $200 million in funding at a valuation of over $4 billion.

• Ford plans to add Super Duty truck production to its Canadian plant.

• Tesla CEO Elon Musk sets battery deadline after setbacks.

• The 2025 Cadillac Escalade goes big on tech and ditches its diesel powertrain.

Thanks for reading everyone.

— CDG