The messy world of auto loans, VW might close factories, hybrids shine in Aug.

Hey, everyone. Huge week for Car Dealership Guy. We announced our acquisition of Global Auto Staffing and launched CDG Recruiting, a hands-on, white-glove automotive recruiting service.

Building on top of our Job Board (don’t worry, it’s not going anywhere), CDG Recruiting is ready to help automotive companies find top talent for their teams.

So far—the response has been incredible, and I just want to take a moment to say thank you. Check out the announcement here.

—CDG

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Each week, I curate the top 5 automotive industry headlines based on the topics CDG readers engaged with the most on social media. Let’s get started.

1. Car loan delinquencies rise ahead of possible rate cuts

What's happening: Car loan delinquencies kept climbing in July, reaching 3.7%—the highest rate for that month since 2009, according to Moody's Analytics.

By the numbers: Loans that were 30 or more days delinquent jumped 10% year-over-year, mirroring trends from earlier in 2024. 

• Interestingly, prime borrowers—those with solid credit scores between 700 and 740—saw an 85% spike in delinquencies from 2019 levels.

• Subprime borrowers (credit score: 580-669) had a more modest 10% increase.

Why it matters: Inflation and the high interest rate environment are stretching consumers' budgets thin, creating a stubborn ripple effect on the auto market.

(Read the full article here)

The good news is—auto interest rates are falling and will likely go down a bit more this year, but there’s a catch (or two)…

2. Car loan rates dip, but monthly payments keep rising—now what?

The big picture: In August, car loan rates dipped a bit to 6.9%, down from 7.2% last year. However, monthly payments still went up, averaging around $729, which shows that even with a small rate drop, car buyers are still feeling the squeeze.

Why it matters: Lower rates usually mean lower payments, but not this time. 

• Falling used car prices have slashed trade-in values by $1,433, so buyers aren’t getting as much for their old cars. 

• Meanwhile, new car prices, though down slightly to $44,039, are still high enough to keep those monthly payments up.

What to watch: The Fed is expected to cut interest rates soon, but the size of the cut is up in the air. Most analysts are betting on a 25-basis-point drop, while others are eyeing a bigger 50-point cut.

Bottom line: At this point, any cut would be somewhat of a relief, but as many of my followers point out, rates will probably stay at an uncomfortable level until a 100-basis-point cut happens.

(Read the full article here)

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As consumers feel the sting of auto loans, Volkswagen hopes its leap into A will keep customers engaged enough to overlook the financial squeeze…

3. Volkswagen to launch ChatGPT-enabled voice assistant

What's new: VW is jumping into the AI game with its new ChatGPT-enabled voice assistant, “Plus Speech,” rolling out on Sept. 6. It's initially available in select models through the Car-Net platform.

Why it matters: This move shows how carmakers are racing to keep up with tech trends—75% of automakers plan to integrate generative AI soon. 

• VW hopes the new tech will boost its appeal by offering more natural and human-like voice interactions.

Zoom in: The challenge for VW is that it hasn't exactly wowed customers with its tech offerings—ranking 23rd in J.D. Power's Tech Experience Index. 

• The question now is whether this new AI feature will move the needle or just add to consumer frustration.

What's next: For VW, it remains to be seen whether this assistant actually improves the driving experience. If it ends up being more of a gimmick than a game-changer, it could backfire.

(Read the full article here)

Just as VW unveiled this feature, some troubling news broke…

4.  VW weighing first-ever factory closures in Germany

Driving the news: VW might shutter some of its German plants—a first in its history—amid fierce competition from Chinese carmakers and lagging EV sales.

Why it matters: This decision reveals the pressure on European automakers as Chinese brands grab more EV market share. VW’s struggle to compete with China has hit its bottom line hard, and closing plants could ignite a battle with Germany’s powerful labor unions.

Zoom out: VW's recent financial reports suggest it's unlikely to hit its $11 billion savings target by 2026. Factory closures could help cut costs, but unions representing 120,000 workers are gearing up to fight back.

Bottom line: VW's dilemma is a byproduct of changing market dynamics. Automakers must adapt or risk falling behind, even if it means making tough, unpopular decisions.

(Read the full article here)

Switching gears, OEMs started releasing their August numbers, and there is a clear winner…

5. Hybrids drive success for Toyota, Hyundai, Ford in August

What's happening: Hybrid vehicles stole the spotlight last month, with Toyota reporting a 49% jump in hybrid and alternative fuel sales. Hyundai and Ford also saw strong gains in the hybrid market.

By the numbers: Hybrids are becoming a key part of the strategy for many automakers. 

• At Toyota, hybrids made up nearly half (47.6%) of its U.S. sales. 

• Hyundai saw an 81% increase in hybrid sales, particularly with models like the Tucson and Sante Fe. 

• Kia wasn’t far behind, with a 43% jump in hybrid sales year-over-year. 

• Ford also saw a strong performance, with hybrid sales up 50%, reaching 16,394 units in August.

Bottom line: The hybrid trend shows no signs of slowing down. As American buyers continue to embrace hybrids, automakers are ramping up their offerings to stay ahead, even as they face tougher foreign and domestic competition.

We’ve got tons of great jobs hitting the CDG Job Board right now. Here are some standouts for anyone looking for their next move.

• Edmunds is looking for 4 account executives across the country.

• Checkered Flag Porsche needs a Porsche apprentice technician near Virginia Beach.

• Mclarty Daniel Automotive is hiring an automotive sales associate around Springdale, Arkansas.

Looking to hire? Add your roles today—it’s 100% free.

That’s a wrap for now – make sure you’re following along on X, LinkedIn and IG for more real-time updates.

🚨 Hey you! Before you go…

Thanks for reading. Hit reply and let me know if you found this week-in-review valuable or have any feedback. I’ll see you next weekend.

—CDG

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