1.4M Honda/Acura cars under investigation, auto credit access is loosening, Mazda dealer profits rise

Hey everyone. Today on the Car Dealership Guy podcast, I talk to dealer Liza Borches — CEO of Carter Myers Automotive — who is taking a super innovative approach to employee retention: stock ownership plans.

In fact, one CMA employee will be retiring (early) with a staggering $1.3 in company stock. Simply amazing.

Stream the full episode available now on YouTube, Spotify, and Apple.

— CDG

Dealerships are facing a major surge in fraud:

Synthetic identities (aka, blending real and fake info to create a new ID) now hold $2B in U.S. auto loans — a 105% jump (!) from five years ago.

The reason?

Generative A.I. is enabling the creation of fake but credible identities faster than ever.

It’s hard to imagine this getting better before it gets worse.

(Source: TransUnion)

1. NHTSA investigating 1.4 million Honda vehicles over engine failures

The NHTSA is investigating 1.4 million Honda and Acura vehicles after reports of critical engine problems that could lead to complete failure.

The details: This follows a 2023 recall impacting 250,000 vehicles, with 173 new cases involving faulty connecting rod bearings in models like the Honda Pilot, Odyssey, and Acura MDX — all equipped with a 3.5-liter V6 engine.

After a series of recent recalls, Honda faces added pressure to tackle this issue quickly and maintain its reputation for reliability, especially as the industry as whole grapples with a surge in safety challenges … (Go deeper: 2 min. read)

2. Auto financing eases in Oct. as lenders get more aggressive

Auto credit access is continuing to thaw, with Oct. marking the second straight month of easier financing terms.

By the numbers: Cox Automotive’s Dealertrack All-Loans Index climbed 2.2% — its biggest monthly jump since early 2022 — with credit unions loosening up the most.

While credit access is still tighter than it was a year ago, the shift is a welcome relief for dealers.

And some lenders are stepping up just in time for the holiday rush, with some even pushing for higher-risk applications to fill their pipelines … (Go deeper: 3 min. read)

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Don't miss out on this opportunity to elevate your dealership's visibility and sales performance. You can sign up for Premier today at Edmunds.com/CDG.

3. Mazda dealers see profits spike as sales climb

Mazda’s hitting its stride, with dealer profits up 85% from pre-COVID levels and sales rising 18% this year, driven by crossovers like the CX-90 and CX-50.

The automaker’s “Retail Evolution” program, which upgrades dealerships with open-concept layouts, has boosted dealer throughput and profitability.

And new product launches, including a hybrid CX-50 and potentially a next-gen sports car, are adding momentum.

Bottom line: Mazda’s dealer-focused strategy is clearly paying off as it strengthens its position in a competitive market … (Go deeper: 3 min. read)

• Loss-making EV firm VinFast to get $3.4 billion more funding from founder, parent company.

• Nissan shares surge after company linked to hedge fund takes 2.5% stake.

• Tesla turns back to free Supercharging, big discounts in Europe to boost sales.

• Cheap used EVs will flood the market in the next two years, experts say.

• GM’s newest EV is a Cadillac ‘baby Escalade’ called Vistiq.

Thanks for reading everyone.

— CDG