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Inside the off-lease shortage, Stellantis cuts 2024 profit forecasts, Chevy's new EV training program

Go deeper (5 min. read)

Hey everyone. What a weekend for the southeast.

Hurricane Helene ripped through Florida, Georgia, the Carolinas, and more over the weekend. Several dealerships closed, and hundreds (maybe thousands) of cars were damaged or flooded.

In a surprising twist —- BMW Financial was also down for lots of dealers nationwide over the weekend. Apparently, BMW’s servers were located in an impacted area, and some dealerships were down for upwards of 18 hours.

Shocked to see no redundancies in place — especially given all the storm warnings.

— CDG

1. How long will the off-lease shortfall squeeze used car supply?

Lease maturities — a crucial source of nearly new, low-mileage used cars — have dropped significantly in 2024, with another 19% decline expected by Q4. This continued fall, driven by pandemic-era supply disruptions, has squeezed inventory and propped up wholesale prices.

What it means: With fewer off-lease vehicles in circulation, some dealers are paying more at auctions and for trade-ins, potentially compressing margins further.

Looking ahead, the tight supply of off-lease units is expected to keep pressure on pricing and make used car sourcing a challenge for dealers in the near term … Read more

2. Stellantis joins other automakers in 2024 profit cuts

Driving the news: Stellantis has joined other automakers in cutting 2024 profit forecasts, citing weak China sales and cash burn in the U.S.

The move comes as other global automakers, including Volkswagen, BMW, and Mercedes-Benz, have also downgraded expectations in the face of mounting industry challenges.

With its revisions, Stellantis is scrambling to stabilize its North American operations and accelerate inventory corrections before year-end. Meanwhile, concerns over profitability are shaking investor confidence across the industry … Read more

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3. Chevy rolls out new EV training sessions for dealership salespeople

Chevy is launching a nationwide EV road tour to give salespeople hands-on experience with electric vehicles and boost their confidence in selling them.

The program will take place across five states and is expected to train 7,000 dealership employees, focusing on dispelling common EV myths.

Between the lines: The timing is critical as Chevy ramps up its EV lineup, especially with nearly half of car shoppers still skeptical of EVs, according to a Cox Auto study … Read more

Deep dive: Why Volvo Cars is rethinking its EV game plan

Volvo Cars is rethinking its EV game plan as U.S. sales slump and profit projections take another hit. The Swedish automaker has backed off its 2030 all-electric target and is now racing to shift production of its new EX30 SUV out of China to dodge steep tariffs—delaying its U.S. debut by years.

The challenge: Volvo’s shift comes as it tries to maintain relevance in an increasingly competitive EV market. While hybrid and EV sales surged 47% this year, the company’s struggles to balance electrification with profitability leave its future uncertain.

The big question — can Volvo regain its footing and stay ahead of the curve, or is it getting left behind as other luxury EV brands gain ground? … Read more

Have a tip for our editorial team? Send us your scoop at [email protected].

Thanks for reading everyone.

— CDG

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