U.S. hybrid sales lead May gains, VW cuts workforce amid EV losses, Congress targets auto insurance discrimination

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Welcome to the Daily Dealer a concise rundown of the most important automotive industry headlines that matter to car dealers, automakers, and industry insiders.

Vehicle trade-in values are reaching their highest point since May 2023:

The average amount received for a trade-in was $34,014 in April—$388 more month-over-month and $820 higher than this time last year.

And the reason is pretty simple…

Dealerships are paying extra for trade-ins to boost used inventory as tariffs squeeze new car supplies and drive up prices.

(Data source: Cars Commerce)

And as others have pointed out…

1. May U.S. auto sales show hybrid leaders pulling ahead as demand holds steady

With tax refunds behind us and tariff panic quieter than before, May gave us a clean read on who’s actually moving metal.

Hyundai (84,521 units, +8%) and Toyota (+11%) rode hybrid highs and SUV demand to big gains, while Kia notched its eighth straight YoY increase.

Ford and Honda held steady, each lifted by solid hybrid growth. Meanwhile, Mazda (-18.6%) and Subaru (-10.4%) lost steam after hot starts to the year.

Big picture: Toyota’s a solid example of May’s signal, but it wasn’t just them. Buyers are showing up for smart mix and real value, not bloated lineups.

(Go deeper: 4 min. read)

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2. Volkswagen confirms 20,000 voluntary employee departures by 2030

Volkswagen is cutting 20K jobs by 2030—mostly through early retirements and voluntary departures—as part of a broader restructuring.

The plan includes slashing German production by 700K units and reducing group-wide headcount by up to 35,000, with cuts spanning Audi and Porsche. VW is also exploring the sale of Italdesign and ramping up U.S. investment, particularly under the Audi brand.

The driver? Mounting EV losses and growing pressure from lower-cost Chinese competitors.

Bottom line: VW is shedding legacy weight in Europe and shifting focus to the U.S. as it searches for profitability in the EV race.

(Go deeper: 2 min. read)

3. Lawmakers reintroduce bill to reform auto insurance pricing

A new bill in the House aims to reshape how auto insurance rates are set by banning credit scores, ZIP codes, and job titles from the equation.

Backed by Rep. Rashida Tlaib and others, House Resolution 336 would give the FTC enforcement power to fine violators $2,500 or more per offense. The move comes as insurance costs continue to soar, with rates up 16.5% last year and still climbing.

Zooming out: Stripping out non-driving factors could unlock better rates—and bring more buyers back into the retail funnel.

(Go deeper: 2 min. read)

Thanks for reading everyone.

— CDG

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