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Hey everyone,
Tomorrow morning, our latest Breakdown newsletter is running, with this week’s topic being “3 truths defining the dealer v. broker debate.”
Worth the read once it lands.
— CDG
First time reading a CDG Newsletter?
Welcome to The Weekly, a roundup of the top five auto industry headlines of the week.
How Community Kia doubled its internet lead conversion with a 100% video response process
Community Kia implemented a 100% video response process for internet leads across Community Cars' seven stores and says it has at least doubled conversion, with salespeople now closing around 30% of internet inquiries.
Every lead gets a personalized walk-around video with the customer's name, vehicle confirmation, and a face-to-name introduction from the salesperson.
Their reasoning: When GSM Bryan Gelfand mystery-shopped dealers across four states to benchmark the practice, he didn't receive a single video response out of nearly 10 leads sent. Which is why, for Community Kia, making it a non-negotiable standard from day one is paying off.
Four OEMs issue reminders about broker policies
Four OEMs issued broker policy reminders to their dealer networks this week, with Kia going first, followed by Toyota, Nissan, and Hyundai, all reinforcing that broker sales don't qualify for incentive payments and that violations can trigger chargebacks, allocation adjustments, or dealer termination.
The wave of memos, particularly concentrated in the Northeast where illegal brokering is most prevalent, was welcomed by dealers, with one calling it the strongest stance he's ever seen from an OEM.
Bottom line: With four OEMs issuing similar statements in the same week, it’s safe to say next week could come with additional memos shared by other OEMs.
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Affordability pressures push buyers to used cars as new inventory builds
New-vehicle market days supply hit 73 in March, the highest in five years, as affordability concerns pushed more buyers toward used cars in Q1.
Sub-$30,000 vehicles now make up just 13% of new inventory, down from more than 30% five years ago, and nearly-new used vehicle sales rose 24% year over year with the fastest growth around the $20,000 price point.
Big picture: Hybrids remain the tightest segment at 47 days' supply, while BEVs sit at 85 and PHEVs at 98, reinforcing that inventory alignment with where consumer budgets actually are is the opportunity right now.
Why Fred Timbrook keeps building in rural markets that many avoid
Fred Timbrook has built a 20-rooftop group across rural Virginia and Maryland, all self-funded, on a simple thesis: rural markets don't swing as hard in either direction.
His stores average just over 50 units a month, some as low as 30, and he openly acknowledges that 20 rural rooftops probably equal four metro stores in volume. And while vendor costs per rooftop don't scale with store size, lower real estate, lower cost of living, and more predictable cycles have kept the model working.
Case in point: His group finished Q1 up 1.3%, and he wants 50 stores by age 72.
Mexico auto exports to U.S. drop sharply as tariffs take hold
Mexico's auto-sector exports to the U.S. fell 13.4% year over year in the first two months of 2026, totaling $23.15 billion compared to $26.74 billion a year earlier, as Trump's 25% tariffs on vehicles continue to bite.
Passenger car exports took the hardest hit, down 27.5% to $5.14 billion.
What we’re watching: The contrast with overall U.S.-Mexico trade is the more interesting piece, because total two-way trade between the two countries rose 6.2% over the same period, making automotive the clear pressure point in the relationship.
Missed yesterday’s episode of Daily Dealer Live?
Presented by:
Fixed Ops Friday w/ Tully Williams, Darren Spenst, Renee Crisler
Featured guests:
Tully Williams, Fixed Operations Director at The Niello Company
Darren Spenst, Founder and CEO of The Laundry Guy
Renee Crisler, Owner/Founder of Reilly Crisler Jumpstart Memorial Fund
Cox Auto: Fixed ops revenue is at a record, but easy money is still being left behind
Volkswagen ends U.S. ID.4 production at Chattanooga, shifts focus to new Atlas
