Hey everyone. Carvana’s margins aren’t some big secret...
I recently spoke to Ernie Garcia, Founder and CEO of Carvana, on the CDG podcast, who explained that the company’s $7,427 gross profit per unit is the result of stacking strategic advantages like in-house financing, wholesale sales, and a vast logistics network.
— CDG
Tons of 2025 EVs are getting MSRP cuts:
Audi Q4 e-tron: -$6,200
Toyota bZ4X: -$6,000
Chevrolet Blazer EV: -$4,200
Cadillac Lyriq: -$4,095
Ford Mustang Mach-E: -$3,500
With the federal EV tax credits likely disappearing sometime next year — automakers are hoping these price cuts will be enough to entice buyers.
(Data source: CarEdge)
1. VW reaches deal with German union, preventing layoffs and plant shutdowns
Volkswagen has struck a critical wage deal with its German plant workers.
Driving the news: The agreement ensures no involuntary plant closures until 2030, and allows VW to cut 35,000 jobs through buyouts and early retirement.
This move is part of the automaker's strategy to counter falling vehicle demand, rising raw material costs, and intensifying competition from Chinese brands.
Despite averting a crisis, VW is still grappling with a 21% drop in operating revenue and a 4% decline in global vehicle sales this year.
The big question: Can this agreement stabilize VW’s future amid an industry in flux? … (Go deeper: 4 min. read)
2. Used car sales surge during holiday season
Used car sales are bucking seasonal trends, with November retail sales up 13% year over year, reaching 1.42 million units.
Zooming in: Inventory levels stayed steady, but days’ supply dipped to 46, signaling tight conditions.
Inventory conditions are tight for cars priced under $15,000, where supply is now below 34 days.
However, despite affordability challenges, consumer demand remains strong, even as average listing prices hover around $25,565.
The takeaway: The used car market is showing surprising resilience as 2024 nears its close … (Go deeper: 3 min. read)
Mia answers the phone 24/7 for sales, service, parts and your front desk. But unlike other solutions, she speaks naturally like a human.
We're talking fluid, open-ended conversations instead of the dreaded 'press 1, press 2'.
Mia answers every call with a friendly attitude to help customers shop for cars, book service appointments, and answer any questions. She even speaks multiple languages.
Mia seamlessly integrates with your CRM, DMS & inventory system to give you the best data possible.
Mia never takes time off, so you'll never miss a phone lead again. Check her out at mia.inc.
3. Honda, Nissan formally begin talks for possible $58B merger
Honda and Nissan are officially exploring a merger, aiming to create a $58 billion automotive giant, with Mitsubishi potentially joining the talks.
Zooming in: Facing growing pressure from Chinese EV makers, the deal could help both brands catch up in the electrification race.
For Nissan, it’s a shot at recovery after years of financial struggles and leadership turmoil.
For Honda, it represents access to valuable manufacturing assets and technology.
With consolidation becoming a survival strategy in the competitive auto industry, all eyes are on whether this merger will actually come to fruition … (Go deeper: 3 min. read)
Have a tip for our editorial team? Send us your scoop at [email protected].
Stellantis shelves 1,100 layoffs at Ohio Jeep plant to reassess strategy.
VW reaches union deal to cut 35,000 German jobs after grueling talks.
Critical EV battery materials face a supply crunch by 2030.
Production of Fiat And Maserati EVs will stay paused over slow sales.
Why automakers seek partnerships to reduce costs, advance tech faster.
Did you like this issue of the Daily News Roundup?
Thanks for reading everyone.
— CDG
