Scout Motors heads to court, Tesla’s market share in Calif. dips, more Stellantis leadership shakeups

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Hey everyone. A super granular and insightful CDG Podcast just dropped today that dives deep into the secrets behind Cavender Auto Group’s 300% sales volume increase over the last 5 years.

I recently spoke with Rob Cavender (COO) and Eric Barbosa (VP of Variable Operations) from Cavender Auto, who discussed cracking the dealership code by using data-driven decision-making, structured leadership development, and a relentless focus on customer experience.

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— CDG

1. Scout Motors’ direct sales fight heats up in courtrooms and legislatures

A group of Volkswagen and Audi dealerships in Florida is suing Scout Motors, claiming its direct-sales model violates state law.

What’s happening: The lawsuit, backed by major dealer groups like Morgan Auto Group and Braman Automotive, argues that Scout’s online reservations illegally bypass dealerships. The suit also questions the validity of Scout’s independence from Volkswagen Group.

Meanwhile, in South Carolina, Scout is pushing for a law that would legalize direct EV sales, leveraging its massive new factory project to gain political backing.

On Monday, Governor Henry McMaster endorsed the South Carolina Consumer Freedom Act, which would allow direct EV sales statewide. The bill has bipartisan support but faces opposition from the state’s powerful dealer lobby … (Go deeper: 4 min. read)

2. Toyota tightens grip on California’s new car market as Tesla’s EV lead shrinks

Tesla’s registrations in California dropped for the fifth straight quarter, down nearly 8% in Q4 and 11.6% for the year, bringing its market share to 11.6%. Although, Tesla still has 53% market share for electric vehicles.

But it’s not just Tesla—Zero Emission Vehicle (ZEV) registrations as a whole declined, making up 22% of the market for 2024, while hybrids gained 2.4 percentage points in Q4.

• Toyota capitalized on the shift, strengthening its lead with nearly 290,000 registrations, a 4.4% increase from last year.

• Honda also saw an 11% jump, while brands like Lincoln, Land Rover, Cadillac, and Buick posted gains of 20% or more.

California has long been the epicenter of EV adoption, but these numbers suggest the transition won’t be as straightforward as once expected … (Go deeper: 3 min. read)

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3. Stellantis continues leadership overhaul amid pressure to fix U.S. operations

Stellantis is shaking up its leadership again, looking to streamline operations and rebuild trust with dealers.

• Jeep’s North American and global operations are now under one roof, with Bob Broderdorf stepping in as CEO, while Americas COO Antonio Filosa is taking on quality control—an area where Stellantis brands have struggled.

• Chief Marketing Officer Olivier Francois will now lead a new marketing office focused on advertising and sponsorships.

Big picture: These moves follow the departure of former CEO Carlos Tavares in December and come as Stellantis cuts prices and rolls out more affordable trims to better meet dealer and consumer needs … (Go deeper: 3 min. read)

• As Trump pauses tariffs on Mexico and Canada, China makes its move.

• Audi drops plan to distinguish EVs with separate model names.

• I pitted hands-free driving tech against I-95’s speeding drivers.

• Trump tariffs will only add to the pain for hard-hit Nissan.

• Courtesy Automotive Group donates 2 more vehicles to SLCC automotive department.

Thanks for reading everyone.

— CDG