Automotive State of The Union

The case involves four Kia dealerships and one Hyundai dealership affiliated with Greenway.

The FTC alleges customers paid more than $3,350 above the advertised price, on average, in over 92% of transactions.

According to the complaint, the dealerships continued the practices after a March warning, even while adding assurances of price transparency to their websites.

The proposed order would require advertised prices to include all required charges except government-required charges. It also addresses misleading financing claims and deceptive prize mailers.

The settlement awaits court approval, and the defendants neither admit nor deny the allegations.

Vehicles averaging more than 40 mpg are up 9.9% since January.

The 35–39 mpg group is up 3.7%, showing strength extends beyond the highest-efficiency vehicles.

At the other end, the report shows vehicles below 15 mpg down 15%, while the 15–19 mpg group is down 8.8%.

Diesel vehicles have a 39-day supply, 11 days above the overall market and up 27% year over year.

For dealers, the split is a reminder to watch fuel economy alongside age, mileage, and segment when making acquisition and pricing decisions.

The company plans a four-seat model for $15,000 and a six-seat version for $18,000.

Chip claims a 100-mile range, with a top speed of 25 mph.

Its lavender prototype features expressive headlights and a voice interface, giving the vehicle a character of its own.

Deliveries are planned for 2027. AI and driverless capabilities remain development ambitions.

The practical limit is where it can safely and legally travel: this is a low-speed neighborhood vehicle, so the family’s actual routes matter as much as the price.

New models coming: Electric 718 sports cars arrive in 2027, followed by a gas and hybrid crossover in 2028. A larger SUV is also under consideration.

No U.S. factory: Despite paying $811M in tariffs last year, Porsche says American production isn't financially justified.

Porsche wants to boost average prices on its 10,000 most expensive vehicles by 20%, from $304K to $372K, through customization and exclusivity.

Major cost cuts: Porsche plans to slash management positions by 40% and reduce production personnel costs by up to 30%.

CEO Leiters reinforced the strategy: “We remain firmly committed to value over volume.”

One central hub: Toyota's R&D facility in Saline, Michigan, will bring all stages of EV battery testing together.

More than just EVs: The center will support battery development across Toyota's electrified lineup, including hybrids and solid-state cells.

North American focus: Research and testing will support batteries destined for electrified vehicles manufactured in North America.

Rather than focusing exclusively on all-electric vehicles, Toyota is investing in multiple battery technologies to support its broader electrification strategy.

Tesla leads the pack: The Model 3 contacted 34 advertising, tracking, and analytics domains, followed by the Cybertruck with 23.

GM isn’t far behind: The Cadillac Lyriq contacted 10 domains, Lucid Air 9, Chevy Blazer 7, and Honda Prologue 5.

The Mercedes-Benz EQS and Buick Envista contacted zero third-party domains during testing.

A separate survey found 96% believe they should control their vehicle data, while 78% are uncomfortable with automakers collecting it.

GM responded: “We’re committed to keeping customer data secure so people can enjoy the benefits of in-vehicle connectivity.”

Average asking prices fell 2.5% over four weeks, comparing vehicles listed on both Sept. 5 and Oct. 3.

OAV found 58% of those vehicles had asking-price reductions of more than 0.5%.

SUVs and EVs saw the largest average declines at 2.7%, followed by vans at 2.5%, trucks at 2.3%, and cars at 2.2%.

OAV plans to publish the asking-price report weekly.

Founder and CEO Skye Haulman: “For shoppers and dealers alike, that’s useful evidence of how actively asking prices are being adjusted.”

The deduction applies to qualifying new vehicles with final assembly in the U.S., capped at $10,000 annually, with benefits reduced above $100,000 in income for single filers and $200,000 for joint filers.

The IRS and Treasury declined an NADA and AFSA (American Financial Services Association) request to include interest paid on financed negative equity in the Sept. 8 final rule.

Nearly 30% of new-vehicle purchases with a trade-in included negative equity in Q2 2026, averaging $6,884 owed, according to Edmunds.

AFSA says lenders now have to track how much interest is specifically attributable to negative equity. General counsel Philip Bohi said, “There’s never been a reason to break any of this stuff out.”

The deduction has seen relatively limited use so far: Treasury said more than 1.4 million filers claimed it for the 2025 tax year, with an average deduction of more than $1,800.

The FTC had alleged the three David McDavid dealerships charged customers for unwanted add-ons and that Black and Latino customers paid additional amounts for add-ons. Asbury denied the allegations and sued in federal court, challenging the agency’s structure and procedures.

The FTC said continuing could mean years of federal litigation before reaching administrative adjudication and cited its limited agency resources in dismissing the case.

KPA Chief Legal and Strategy Officer Adam Crowell said he expects the FTC to move away from administrative actions against dealers and instead go directly to federal court.

Despite dismissing the Asbury action, the FTC reiterated its commitment to pursuing price transparency, specifically including automobile dealers.

Industry sales neared 4.1 million vehicles, less than 1% behind last year and down roughly 3% from the second quarter.

Hyundai sold a record 246,896 vehicles in Q3, led by a 23% increase for the Tucson. Hyundai is now running 3% ahead of 2025 year-to-date.

Honda sales increased 9.3% for the quarter, including a record 106,000 hybrids. The CR-V also set a Q3 record.

Ford sales fell 6.6% and GM dropped 6%, while Stellantis was nearly flat. Stellantis remains up 3% for the year, with Ram sales running 20% ahead of 2025.

Nissan grew 7.8% in Q3, Kia set a quarterly sales record, and Mazda finished September up nearly 32% year over year.

Hyundai plans more than 100 new or refreshed vehicles globally by 2030 and has been redesigning vehicles faster than the industry average, helping it gain U.S. market share.

Hyundai will soon begin producing robotaxis for Waymo, is developing autonomous technology through Motional, and plans to be capable of building 30,000 Boston Dynamics robots annually by 2028.

Tesla has stopped production of its full-size sedan and SUV to make room for a humanoid-robot assembly line. Its newest vehicle, the Cybercab, has no steering wheel and is intended for Tesla’s robotaxi fleet.

Tesla’s Roadster, originally expected in 2020, was delayed again Thursday. If Tesla’s robotics plans take longer than expected, the company has little in the pipeline; Hyundai’s risk is that pressure from its current car business could derail its robotics plans.

Muñoz: “The strategy is simple to say and hard to do: maximize the profit of the car business today through product efficiency and localization, then fund the future.”

Gen Alpha already influences nearly half of U.S. household spending in families with children ages 8–14 and has an estimated $100 billion in annual direct spending power.

Influencer marketing was a mixed bag: authenticity can make a partnership appealing, while controversial personalities can push these young shoppers away.

Thrifting was popular for both value and individuality, with panelists pointing to better-made pre-owned clothing, vintage style and the chance to find something unique.

The teens preferred shopping in person but wanted stores to give them more reasons to stay — activities at pop-ups and comfortable spaces where friends can hang out while others shop.

AI drew the sharpest criticism. Fifteen-year-old Jewell Hamilton said, “I’m a teenager. My money’s limited. I don’t want to give it to AI. Also, with AI models, I don’t know if you’re lying to me right now.”

Pure gas-powered sales fell 10% to 20.25 million in the first half of 2026, dropping to 49% of the global market from 73% in 2021.

The ICE decline was sharper in China and Europe, where sales fell 26% and 13%, respectively.

BEV sales rose 12% to 6.87 million, reaching 17% global share, while hybrids rose 10% to 7.27 million and 18% share.

The U.S. picture remains mixed: Mobility Global counted 52,154 EV households switching to gasoline vehicles from June 2025 to June 2026, while an Alliance for Automotive Innovation report found EV share increased in 47 states in Q2.

Mobility Global’s Yoshiaki Kawano said, “Few EV buyers return to gasoline vehicles or hybrids, and as prices continue to fall, demand driven by genuine consumer needs rather than subsidies is likely to expand.”

Nearly one in six cars sold in Britain in the first half of 2026 carried a Chinese brand, while vehicle imports from China have almost doubled from a year earlier.

Chery has led the surge: its U.K. sales more than tripled through September, moving it ahead of Ford, while the Jaecoo 7 became Britain’s bestselling vehicle in September.

Dealers say price is a major draw. One Jaecoo retailer estimates about three-fifths of its buyers previously owned brands including BMW, Mercedes and Range Rover.

The influx has helped U.K. dealers after a slow postpandemic recovery; total British car sales were up about 10% through September.

Leeds dealer Sam Luscombe summed up the pitch: “It looks expensive, it feels expensive—and then you find out how much it costs.”

Northern Tool + Equipment donated the running-but-rusty 1976 F-350 to Flandreau Indian School’s career and technical education class as part of its Build IV program, which promotes skilled-trades careers.

Students have until May 5 to transform it into “America’s Ultimate Trades Toolbox,” with compartments showcasing construction, electrical, automotive detailing and other trades.

Half the build team is female for the first time in the program, while DeWalt, House of Kolor and custom painter Keaton Lee are also supporting the project.

Asked whether the truck had anything that could use his welding skills, senior Dominick Vitsui had an easy answer: “Oh yeah. The floor.”

Tavaris was named Austin Angels’ 2026 Youth of the Year at the surprise event; the nonprofit supports children, youth, and families navigating foster care.

He arrived expecting to test-drive vehicles with his mentor, but his foster mother and dealership employees were waiting to surprise him with a 2026 Subaru Impreza Sport.

City Limits Subaru employees personally donated funds toward the vehicle.

This is the third year the dealership has gifted a vehicle to a young person through Austin Angels.

City Limits Subaru wrote, “Seeing him receive the keys, surrounded by people cheering him on, was a moment our team won’t forget.”

Toyota says traffic to Toyota.com and other top-of-funnel sites is down around 20%, a trend marketing chief Mike Tripp said is consistent with the broader industry.

The brand has shifted its digital focus from SEO toward Generative Engine Optimization and Agent Engine Optimization, building specific FAQ-style content across its sites and YouTube channels for AI models to scrape.

Tripp said the shoppers who still reach Toyota.com have a higher propensity to buy, with customers ultimately returning to Toyota.com, SmartPath or a dealer to purchase.

Toyota has also changed its launch marketing, moving from paid ads focused on individual models toward families of vehicles, community-based marketing, earned media and influencers.

Tripp: “Nobody surfs the web anymore.”

GM saw strong gains for the Chevrolet Trax and Trailblazer, while Hyundai Elantra sales jumped 18%; all three start below $25,000.

Honda passenger-car sales rose 18% in Q3, their best performance since 2020. Honda said consumer pressure is pushing some shoppers who previously considered small SUVs toward sedans like the Accord.

Several larger SUVs moved the other direction: Chevrolet Suburban and Tahoe sales declined, Hyundai Palisade fell 1%, and Jeep Grand Cherokee dropped 30%.

Stellantis sales were flat for the quarter, and CEO Antonio Filosa said Chrysler will soon add cheaper vehicles; Stellantis currently has few models priced below $40,000.

Hyundai Motor America CEO Randy Parker: “Thank God we never gave up on passenger cars because that’s helping us gain a little bit of share in the marketplace.”

GM’s 30 Under 30 will recognize technicians for customer service, leadership and ongoing training, with honorees serving as ambassadors for technician career opportunities.

Nominations close Oct. 30, with the 30 honorees set to be revealed in January 2027 in Detroit; winners receive tools, personal AI glasses and a service jacket.

The program joins GM’s existing workforce efforts, including its two-year Automotive Service Educational Program with paid dealership apprenticeships and a 12-week Shifting Gears program for transitioning military veterans.

GM Director of Dealer Service and Warranty Operations Andrew McKittrick: “The technicians are the heartbeat of the vehicle. Without technicians, we cannot care for our customers properly.”

CarMax redesigned vehicle detail pages to make finding and buying cars easier, scaled AI voice technology for inbound customer calls and created a chief digital and customer officer role.

CarMax Auto Finance income increased 32% in fiscal Q2, helped by higher new-loan volume and servicing fees.

CarMax has cut 725 jobs across three rounds this year, including 145 in September, and the early scoreboard is promising: Fiscal Q2 net earnings rose 73% to $165.3 million and revenue increased 20% to $7.9 billion.

Barr said the FTC’s push for greater advertising transparency benefited CarMax as competitors adjusted their disclosures, effectively raising advertised prices and strengthening CarMax’s transparent-pricing proposition.

Barr: “By better integrating those two pieces — the digital experience to the in-store experience — that gives us the opportunity to continue to take market share and outperform the competition.”

Through June, over 52K EV households acquired a gasoline vehicle, excluding hybrids and PHEVs — up 15.9% year over year.

Among non-Tesla EV households returning to market, the share choosing gas rose from 38.9% to 44.4%, while the share buying another EV fell from 43.8% to 37.2%.

Hybrids picked up some ground, with their share among those households increasing from 17.3% to 18.4%.

Mobility Global says gasoline vehicles still offer the widest selection of models, trims and price points. Volkswagen, Ram and Acura over-indexed in EV-to-gas conquests, while Toyota, Honda, Nissan and Kia under-indexed.

From the report: “Capturing them requires more than a strong EV lineup. Brands also need gasoline and hybrid options in the segments and at the price points these consumers are looking for.”

Ionna is backed by BMW, GM, Honda, Hyundai, Kia, Mercedes-Benz, Stellantis and Toyota, and now has 180 sites nationwide, including more than 40 Rechargeries at Circle K locations.

Its new-build network uses 400-kW hardware, although very few EVs currently on the market can charge above 350 kW even briefly.

Ionna ranked first in J.D. Power’s 2026 U.S. Electric Vehicle Experience Public Charging Study in its first year of eligibility, ahead of Tesla’s Supercharger network, which ranked fourth.

Instead of building its own charging app, Ionna integrates with 19 partner apps. It’s also expanding Plug & Charge, which automatically bills a customer’s account when the vehicle is plugged in.

CEO Seth Cutler: “The industry has treated charging scale and charging quality as a tradeoff. Our growth and first-place customer satisfaction ranking show that drivers can and should expect both.”

Farley said Ford’s rise to the top mass-market brand in J.D. Power’s 2026 Initial Quality Study followed a cultural overhaul built around accountability, cost control, new people and “a complete obsession with the details.”

Ford’s answer to low-cost Chinese EVs is its Universal Electric Vehicle platform, starting with the $30,000 Fathom pickup next year. Farley acknowledged the challenge: “We haven’t landed the plane on mass production of UEV yet.”

Reuss said GM is “playing the long game” on EVs. At the same time, GM continues investing in combustion, including new V-8 and diesel engines for the Silverado and Sierra. Reuss said those programs were years in development and reflect what customers want.

Reuss on reacting to short-term shifts in regulation, fuel prices and technology: “Whipsawing on technology and propulsion and regulatory administrations is not the game you want to play. It burns capital. It destroys things faster than you could ever imagine.”

The pilot recovered 80 end-of-life battery packs, producing 12 metric tons of new cathode active material made with 100% recycled nickel, cobalt and manganese.

GM says the recycled material had to meet the same quality, performance and safety standards as new material before it could go into new cells.

GM says current technology can recover up to 80% of lithium and roughly 95% of nickel, cobalt and manganese, depending on battery chemistry and conditions. GM hasn’t said what the process could save if scaled.

GM’s Melissa Flaherty: “This pilot shows that the value of an EV battery can extend well beyond its first life — and that strong partnerships across the battery ecosystem are essential to building a more circular, resilient future for battery technology.”

America.gov says it pulls together information from 29,000 government websites, with answers sourced from official sites and links back to the originals.

The interface works much like ChatGPT or Claude: users can type questions in plain language, add attachments or use voice. No account is required.

The bigger functionality is still coming. By early 2027, America.gov promises the ability to complete forms, applications and renewals in one place.

The system declines some requests, including certain financial, tax and legal advice.

The site uses Grok and Gemini to power its AI features, according to U.S. Chief Design Officer Joe Gebbia.