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Hey everyone,
One of our goals with CDG Circles is to drive at least $100M in cumulative dealership profit growth or savings, across the entire community, in the first year.
So, starting this month, we’re launching a weekly Circles Workshop (“webinar”) exclusively for Circles members, built around the topics that matter most to the dealer community.
Point being: If there’s a topic you want covered in a Workshop, drop it here!
— CDG
First time reading a CDG Newsletter?
Welcome to The Weekly, a roundup of the top five auto industry headlines of the week.
Dealers file class-action lawsuit against VW, Scout Motors
Earlier this week, two Volkswagen dealers filed a class-action lawsuit against Volkswagen and Scout Motors, arguing the brand’s direct-to-consumer sales model violates dealer franchise agreements.
The suit automatically includes all VW dealers in the U.S. (once certified) and seeks damages and an injunction to stop Scout from selling vehicles directly to buyers.
The case centers on Scout’s plan to sell its upcoming EV pickup and SUV outside the traditional dealer network, a strategy that has already collected roughly $15 million in reservation fees.
What we’re watching: The outcome could have implications well beyond Volkswagen, as other automakers explore similar direct-sales models.
General Motors consolidates CPO sales under CarBravo platform
GM is consolidating its certified used programs for Chevrolet, Buick, and GMC under a single platform called CarBravo, starting June 2.
The move replaces multiple CPO programs with one system designed to simplify how certified inventory is marketed and sold.
Cadillac will keep its own CPO program, while CarBravo becomes the primary certification channel for the other three brands in the U.S.
As it stands: Dealers are mixed on the news, with some suggesting this will add confusion for shoppers and retailers. So, whether the unified platform helps dealers expand certified inventory and compete more directly with large online used-car retailers is to be seen.
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'Stuck inside these four walls': What one parts director learned from working outside auto
Also this week, we got to hear from Vince McIsaac about his experience joining Hawk Auto Group from outside the auto industry and how he used his outsider perspective to modernize processes that were still largely manual.
Over time, McIsaac said he challenged common pricing habits, pulling back on aggressive wholesale discounting after realizing the volume incentives weren’t worth the lost gross.
But what stood out was his broader message: Sometimes the clearest operational improvements come from people willing to question the “way it’s always been done.”
Fraud ring bust exposes $1.5M auto loan scheme
Authorities in Florida uncovered a fraud ring tied to two dealerships that allegedly generated more than $1.5 million in auto loans through “bust-out” fraud.
The scheme involved recruiting straw buyers, securing multiple loans with strong credit profiles, and then defaulting.
Oh, and investigators say a former finance manager and a broker helped coordinate the deals using falsified loan applications.
Zooming out: Cases like this highlight how sophisticated fraud has become, and exactly how easily it can slip through normal deal flow if verification processes aren’t tight.
First Brands nears creditor deal as Ford, GM back asset sales
Bankrupt auto supplier First Brands is moving closer to a deal with creditors as it works to sell off its four business units separately.
Ford, GM, and other automakers have stepped in to support the process, even prepaying for parts to help keep operations running.
That said: Ford, which sources components from three of the four units, has warned that prolonged uncertainty could create production risk if the assets aren’t placed with stronger operators soon.
Missed yesterday’s episode of Daily Dealer Live?
Presented by:
Fixed Ops Friday w/ Garry Keyser, Matt Norris, Kevin Proctor
Featured guests:
Garry Keyser, President of L. B. Smith Lincoln
Matt Norris, Fixed Ops Director at Bozard Ford
Kevin Proctor, Service and Parts Director at Classic Chevrolet
