Subaru security flaws exposed, auto loan demand expected to jump, refreshed Tesla model Y coming to U.S.

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Hey everyone. Well—after nearly a dozen rebooked flights and several hours behind the wheel—the CDG team finally made it to NOLA for the 2025 NADA Show.

Are you here too? Hit Reply to this email and let me know.

— CDG

1. Security researchers uncover vulnerabilities in Subaru's location tracking habits

Security researchers Sam Curry and Shubham Shah exposed a major vulnerability in Subaru’s Starlink system last November, revealing issues with vehicle data security and customer location tracking.

• By exploiting an employee email found on LinkedIn, the researchers bypassed Subaru’s two-factor authentication, gaining admin-level access to the system.

• From there, they could control Curry’s mother’s vehicle remotely—starting it, honking the horn, and more.

• They also discovered that Subaru had stored a year’s worth of detailed location data, tracking every ignition start and route taken.

Subaru quickly patched the flaw but confirmed that select employees can still access driver location data for emergency response needs … (Go deeper: 3 min. read)

2. Auto loan demand expected to rise in 2025, but credit risks persist

A new TransUnion survey reveals that while more consumers are considering auto loans or leases in 2025, many will face tougher credit challenges.

• Nearly one in four consumers planning to apply for new credit or refinance existing credit by 2025 intends to shop for an auto loan or lease.

• Millennials are expected to be the most active car buyers, followed by Gen Z and Gen X.

• However, only 31% of surveyed consumers believed their finances had improved in 2024, reflecting mixed economic confidence.

The bottom line: There’s plenty of opportunity in the market, but lenders and dealers must tread carefully. Consumers are eager to buy, but their credit pictures might not be as ready as their shopping lists … (Go deeper: 2 min. read)

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3. Tesla Model Y refresh is coming to the U.S. in March

Known informally as “Juniper,” the updated model comes with a $59,990 and some noticeable upgrades.

• The refresh includes redesigned front and rear light bars, ventilated and reclining seats, an 8-inch rear touchscreen, faster Wi-Fi, and acoustic glass for a quieter ride.

• The revamped Model Y also offers a range boost to 320 miles and a quicker 0-60 mph time of 4.1 seconds, though the top speed dips slightly to 125 mph.

Big picture: With deliveries now expanding to the U.S. in addition to China, Europe, and Canada, Tesla hopes the refreshed design will help reinvigorate demand as it deals with its first year-over-year sales decline in 2024 … (Go deeper: 2 min. read)

• VW, Rivian JV could supply software tech to rivals.

• Ford recalls over 270,000 Bronco Sport and Maverick vehicles.

• Why cold weather is no longer an EV battery killer.

• Jaguar Land Rover invests $2M in rare earth magnets recycling.

• Meet the dealership owner turned senator out to save the auto industry.

Thanks for reading everyone.

— CDG