Zeigler Auto lands Ferrari store, new-car inventory dips again, GM hit with V8 recall lawsuit

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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.

Stronger than usual demand is shrinking new car inventory:

In April, only five brands had an average market days’ supply over 100 days—

But for others, supply is at its lowest level so far this year.

And as automakers make reactive manufacturing decisions in light of tariffs, don't expect inventory to restock evenly.

(Tesla has no franchised dealerships and is excluded from this report)

Zeigler Auto just bought a Ferrari store—and it’s their biggest single-rooftop deal ever.

The group picked up Ferrari Lake Forest, a high-volume exotic dealer moving 265 Ferraris a year, plus Koenigseggs and Paganis. And with multi-year waitlists and sky-high margins, it’s a big swing into ultra-luxury.

Big picture: With Ferrari in the fold, Zeigler’s laying the groundwork for more ultra-lux growth, starting with pre-owned and service scale-ups.

(Go deeper: 4 min. read)

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Tariff fears juiced demand in March and April, but May’s shaping up differently.

New-car inventory reached 2.49 million units at the start of May, down 7.4% MoM and 10.5% YoY, while listing prices climbed and incentives pulled back.

“Manufacturers seem to be holding back production with a wait-and-see attitude to see how the tariffs shake out,” Cox Auto’s Erin Keating explained.

Zooming out: May’s shrinking inventory shows how quickly consumer leverage can vanish when manufacturers go reactive.

(Go deeper: 3 min. read)

GM is facing a lawsuit over its L87 V8 engine recall—owners say the fix tanks fuel economy.

Instead of replacing engines, GM’s using thicker oil, which plaintiffs argue means more trips to the pump.

The recall covers 600K+ trucks and SUVs from 2021–2024. And so far, GM’s linked the defect to 12 crashes and 12 injuries.

Bottom line: No customer should have to choose between their vehicle’s reliability and the efficiency that was advertised.

(Go deeper: 2 min. read)

Thanks for reading everyone.

— CDG

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