New car inventory jumps in Oct., GM axes Cadillac XT4, Toyota pushes back against EV 'mandates'

Hey everyone. In case you missed it — we announced on Friday that Sam D’Arc, COO at Zeigler Automotive Group will be hosting a brand new weekly segment on our podcast called the Car Dealership Guy Industry Spotlight (!)

Learn all about it in our announcement video here.

— CDG

Subprime auto loan stress is at all-time highs:

The subprime 30-day delinquency rate is up 40% from pre-pandemic levels —

Meanwhile…

The 60-day delinquency rate has reached an *all-time high*.

Is there any silver-lining?

Possibly. Interest rates are beginning to drop, and auto loan availability is expanding, which could bring some relief for subprime consumers.

But nonetheless, these are unprecedented delinquency levels and something to monitor closely.

(Data source: Bloomberg Research / Bill Ploog)

1. Automakers zero in on production cuts to curb excess inventory

New car inventory is climbing, reaching 2.81 million units in Oct. — just shy of this summer’s brief high of 3 million.

• While Toyota, Lexus, and Honda are keeping inventory lean, brands like Lincoln and Dodge still have months’ worth of supply on hand.

• And lower-priced models remain in short supply, limiting options for cost-conscious buyers, while pricier vehicles flood dealer lots.

Big picture: Some automakers are walking a fine line, trimming production now to avoid the pre-2020 cycle of oversupply and steep discounts … (Go deeper: 2 min. read)

2. GM axes Cadillac model to clear path for Bolt re-launch

General Motors is preparing for the return of the Chevy Bolt by ending production of the Cadillac XT4 in Jan. to make space at its Kansas plant.

• Though the XT4 was once a staple, its sales have dropped, and the factory will now focus exclusively on the Bolt.

• This shift marks GM’s second gas model retirement for EV production after the Malibu, reinforcing its commitment to electrification despite mixed market demand.

Bottom line: GM is betting big on the Bolt — but the future of these plans may depend on political shifts and economic pressures … (Go deeper: 2 min. read)

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3.Toyota exec. criticizes California-led electric vehicle 'mandates'

Toyota is throwing down a warning over California’s EV mandates, calling the targets “impossible” to meet.

• Set to begin next year, these rules would require 35% of 2026 models to be zero-emission vehicles — a number Toyota says doesn’t match current demand and could limit choices for buyers in several states.

Zooming out: Toyota’s pushback could spark a serious reevaluation of what’s achievable — and what’s not — in the race toward zero emissions … (Go deeper: 2 min. read)

• Tesla’s social media posts falsely implied that its cars are robotaxis, NHTSA warns.

• Stellantis cutting 400 jobs at Detroit parts warehouse.

• Jaguar kills off its model line, with no clear plan for the future.

• BYD closing in on Ford deliveries after besting Tesla on revenue.

• Bernie Moreno ousts Sherrod Brown in Ohio Senate race, in big win for GOP.

Thanks for reading everyone.

— CDG