Hey everyone. Big sentiment shift in my texts this morning:
Some Stellantis dealers feel “much more optimistic” about the brand’s future after wrapping up a three-day dealer council meeting in Detroit.
I haven’t heard positive remarks about the brand in a long time, so this is meaningful — especially from large dealers with lots at stake.
More to come on this.
— CDG
Shoppers are desperate for improvements to vehicle affordability, but the market says otherwise: 48% of consumers aim to spend <$35K on their next car — yet the average new vehicle costs north of $47.5K.
The good news is these are just averages.
I’m seeing sales skyrocket for vehicles like the Chevrolet Trax, Toyota Corolla, and Hyundai Elantra — all priced in the neighborhood of $25K.
Just goes to show, that good deals are out there…
(Data source: Edmunds)
1. Hurricane damage adds new pressure to an already tight used car market
Hurricanes Helene and Milton have devastated dealer inventories across the Southeast, flooding lots and forcing many to source vehicles from other markets.
With inventory tight, wholesale and retail prices are poised to climb, squeezing dealers and consumers alike.
Many of the vehicles lost were bought when rates were 3-6%, but replacing them now could likely mean higher rates, steeper insurance premiums, and monthly payments jumping $300+.
And as affordability challenges plague already financially distressed people, car owners may lean toward repairs over replacements, making service departments a lifeline.
At the end of the day, for a used car market already struggling with uneven inventory recovery, the storms threaten to set things further back … (Go deeper: 4 min read)
2. Ford giving dealers up to $22,500 for F-150 Lightning restocks
As part of a pilot program testing its Retail Replenishment Centers (RRCs), Ford dealers can earn $1,000 per Lightning, with bonuses increasing to $1,500 per vehicle after 9 units — maxing out at 15.
The program, which runs through Nov. 15, aims to cut distribution costs and speed up deliveries by leveraging nearby RRCs. Ford is also offering 0% APR for 60 months on current models, likely to clear space for the 2025 Lightning.
This is a big shift from Ford’s previously heavy-handed EV adoption program, but with demand rising in key markets, these incentives make sense … (Go deeper: 2 min. read)
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3. GM invests $625M into lithium mining for EV battery supply
General Motors is partnering with Lithium Americas Corp to develop the Thacker Pass Project, a lithium mining facility in Nevada that could provide enough lithium for up to 800,000 electric vehicles (EV) each year.
GM's investing $430 million to get this project off the ground, which will also help Lithium Americas secure a $2.3 billion loan from the Department of Energy.
On top of that, GM is putting $10 million into Forge Nano to enhance battery performance with some cutting-edge material coatings.
With the race to secure lithium heating up, GM is laser-focused on reducing battery costs and ramping up EV production … (Go deeper: 1 min. read)
Have a tip for our editorial team? Send us your scoop at [email protected].
Detroit suppliers grappling with challenges amidst China's EV rise.
White House spokesperson calls for Stellantis to keep investments in the U.S.
EV leases continue to skyrocket.
Cadillac launches new Lyriq incentive.
Toyota and Hyundai partner on robotics.
Thanks for reading everyone.
— CDG
