Sonic is willing to trade some margin for volume, targeting 25% more used sales at franchised stores or about 20 additional units per rooftop each month.

EchoPark, Sonic’s used car division retailed 19,601 used vehicles in Q2, up 17% YoY. Retail used gross fell 9%, while total gross profit rose 3% to $64.5 million.

They boosted non-auction sourcing from 32% to 42%, helping secure more affordable vehicles while avoiding costly wholesale lanes.

After shrinking from 52 locations to 18, EchoPark plans to add at least one location in Q4, with Sonic believing its hub model has plenty of room to grow.

Sonic President Jeff Dyke says used prices are nearing the sweet spot of half the price of new: “That’s when the used business really fires.”

Domestic sales fell 2.3 million units in the first half of 2026, while exports jumped 71%. Excess capacity is making global expansion less of an ambition and more of a necessity.

BYD illustrates the shift: domestic sales fell 35% through July, while overseas sales jumped 79%, led by markets including Brazil and Britain.

Chinese brands have grown from 3% to 16% of Europe’s passenger-vehicle market since 2022 and now represent nearly a quarter of European EV shipments.

Abhilash Gupta, Counterpoint Research on the European expansion: “Tariffs can slow that curve, but they’re not going to reverse it.”

Prestige Imports, led by friend of the show Matthew Haiken, filed a $25 million lawsuit, alleging Polestar violated New Jersey franchise law and owes the fair market value of its franchises plus five years of parts and warranty support.

Polestar is set to be barred from U.S. sales beyond the 2026 model year because of its ownership by China’s Geely. Prestige claims Polestar spent two years planning its exit and “maneuvered the [government] into a ban.”

Prestige, one of 32 U.S. Polestar retailers, argues Polestar’s force majeure notice effectively terminated its franchises without the required notice or good cause.

The dealer also alleges Polestar didn’t pursue an exemption similar to Volvo’s, despite Volvo also being owned by Geely.

Sen. Bernie Moreno, cited in the suit, argues Polestar was treated no differently than Volvo: “Polestar was screwed by Polestar. It wasn’t screwed by the U.S. government.” He called Polestar’s force majeure argument “a convenient excuse.”

Tesla registered nearly 62K EVs, up 8% YoY, while non-Tesla brands fell 31%, with the Model Y alone capturing 42% of all EV registrations in June.

For comparison, Tesla held roughly 80% of U.S. EV sales in 2020, 72% in 2021 and 64.5% in 2022, meaning June puts it back around late-2022 levels of dominance.

Total EV registrations fell 11% YoY, marking the ninth straight monthly decline, with EV market share dropping to 6.9%. However, June was also the first month since September with more than 100,000 EV registrations.

Incentives remain substantial even without the federal credit: automakers averaged $7,290 per EV in June, roughly 13% of average transaction price.

Loren McDonald, CEO of Chargeonomics: “Tesla is still the Kleenex or Vaseline of EVs — it’s like the EV brand.”

The EV3 Light FWD starts at $29,890 before the $1,495 destination charge, while the lineup stretches through Wind and Land trims to the $45,890 EV3 GT.

The headline combination is sub-$30K pricing and up to 321 miles of range—giving dealers a compelling option for EV-curious and first-time EV buyers at a time when affordability remains a major hurdle.

The EV3 comes with a built-in NACS port and can charge from 10% to 80% in about 31 minutes on a DC fast charger.

Kia America spokesperson James Hope said the EV3 is designed to expand adoption by offering “advanced technology, and everyday practicality in a small SUV package,” calling it an attainable option for EV intenders and first-time shoppers.

Steve shared a stunning stat: For 50 years, the average American dealer hasn’t posted an annual loss, generally holding around 1.5%–2.5% net profit before tax. In 2025, that number sat at an elevated 3.3%.

With personnel representing 47% of dealership costs, the panel sees AI’s biggest opportunity as removing repetitive work so existing employees can spend more time selling, serving customers and building relationships.

Jeff Swickard of Swickard Auto Group is already pricing more than 80% of used inventory with AI, helping drive a 20% volume increase. He’s also deploying automated inventory replenishment that can identify needs, bid at auction and arrange transportation.

Howard Tenenbaum of Keyes Motors is focused less on chasing shiny new tools and more on making proven processes better. His view is that AI can support the salesperson, but it can’t replace them: “Cars are sold, not bought.”

John Keoughan of Temecula Valley Buick GMC moved from generic mass texting to personalized outreach, lifting open rates from 2.5% to 4.5%. His new AI phone system also measures customer sentiment across 100% of calls.

Tenenbaum summed up both dealerships and their approach to disruption: “We're like cockroaches. We're resilient. We keep changing, and you have to adapt.”

Wilson says dealers should stop thinking of the vehicle sale as the end of the transaction. With loans approaching 84 months, it’s the beginning of a potentially very long customer relationship.

The lowest-hanging fruit is connecting sales and service immediately. Introduce buyers to the service department at delivery and make the entire dealership ecosystem part of the experience.

Don’t settle for email opens and marketing engagement as retention metrics. Wilson recommends watching RO data and repeat service visits, with the first service visit being particularly important—lose that oil change or tire rotation elsewhere, and the customer can quickly develop a new habit.

Winning retention requires removing friction. Wilson points toward an “Amazon experience” where booking service is fast and easy, while CarRx is investing in using its mobile app to support the customer throughout the vehicle lifecycle with offers, campaigns and post-sale products.

Wilson’s bigger point: retention can fundamentally change dealership economics by lowering customer acquisition costs—but sales, fixed ops and service all have to participate. “Every department has to be involved in this…for it to really be special.”

Dealers got an early look at the crossover during a private Las Vegas meeting with Ford leadership. It was described as boxy, wide and reminiscent of the first-generation Escape.

At around $25,000, it would become Ford’s least-expensive vehicle, undercutting both the $29,000 Maverick and upcoming $30,000 Fathom EV pickup.

The crossover is expected to arrive in both gasoline and hybrid versions in 2029. People familiar with Ford’s plans say hybrid production is slated for the Hermosillo plant in Mexico alongside the Bronco Sport and Maverick.

Ford also showed dealers a four-door Mustang prototype, reportedly promising a sub-$40,000 price and sub-four-second 0–60 time. Dealers previously heard the name “Mach-4.”

Penske expects some serious growth in returns: Toyota lease maturities are projected to rise from 4,200 this year to 5,600 next year, while BMW returns climb from 9,500 to 10,700.

Industrywide, Cox Automotive expects 3 million lease maturities in 2026 and 4.3 million in 2027. With residual values less favorable for customers than during the shortage, more vehicles could actually make it back into dealer inventory.

Penske’s Q2 lease penetration was 32%, well above the roughly 22% industry average. But its premium brands historically run in the mid-40% range, suggesting there’s still room for leasing to grow.

Penske COO Rich Shearing sees opportunity on both sides of the transaction: “We still have upside with the lease penetration.”

Nissan’s system tracks joints, body angles and task sequences while employees build Frontiers and Altimas, comparing their movements against an ideal process Nissan calls the “golden cycle.”

When AI flags an issue, managers can coach the employee, move them to a different task or redesign the workstation. The goal is safer, more efficient work, not simply telling someone they’re doing it wrong.

Nissan says the technology has contributed to roughly $34 million in safety and health-related savings at Canton. It could also help preserve manufacturing knowledge as experienced workers retire.

Canton is currently Nissan’s only plant using the system, but the automaker plans to expand it to Smyrna, Tennessee, and potentially its powertrain operations.

Nissan manufacturing executive Victor Taylor was pretty clear about the intent: “We’re not talking about job elimination.”

As I prepared this week’s edition, I was reminded of the proverb “May you live in interesting times” (a saying often having less than positive implications).

Contrary to what you might frequently be reading in the press, we at Automotive Ventures believe that humans are much better off than they were even just 20 years ago, by almost any objective measure.

We are a team of technology optimists, and believe the future is bright, although changing at a faster pace than ever in the history of humankind. We are all living through an era of dramatic progress in technology in general, and AI specifically, the side effect of which is causing a lot of uncertainty, leading to tension and anxiety across many segments of the population.

We believe that where there’s rapid change, as we’re experiencing now, there will be opportunities to invest in entrepreneurs uniquely positioned to build businesses that benefit from it.

We believe that the entrepreneur is the lifeblood of capitalism and a country’s economic engine. No company would exist without the initial spark and effort of an entrepreneur. Small businesses and their founders are absolutely vital to the global economy, and the best way to simultaneously benefit the economy and generate wealth is to identify and financially back truly talented early-stage innovators.

As you digest the content of this week’s newsletter, let’s appreciate that we’re all living through the most exhilarating period in history, enjoy the rapid pace at which society is making progress, and prepare for an even more amazing future ahead of us.

I am thankful that we’re all on this journey together.

Steve Greenfield,  General Partner, Automotive Ventures

Former Audi sales chief Marco Schubert is expected to take over VW’s U.S. operations, replacing Kjell Gruner, as the automaker rethinks its approach to a market where it holds just 4% share.

VW brand chief Thomas Schaefer sees opportunity in pickups and large SUVs—high-margin segments where VW currently has little presence. Pickups alone represented nearly 20% of U.S. vehicle sales last year.

VW wants its first new U.S.-focused pickup on sale before the end of the decade, with plans to build it stateside. 

VW hasn't decided whether to go alone or find a partner. Ford is an obvious possibility: the companies already share EV technology, while VW’s Amarok pickup shares its platform with the Ford Ranger.

Edmunds says average EV lease payments bottomed at $538 in July 2025, but some deals could be found for under $100/month. In June 2026, avg payments climbed to $707, versus $607 for non-EVs.

J.D. Power found 96% of EV owners would consider another EV, but affordability and available models are increasingly determining whether they actually do.

In California, hybrids captured 22.1% of new-car sales in the first half of 2026, versus 15.9% for EVs. Used EVs are another option, although prices—especially below $20,000—are beginning to rise.

Edmunds analyst Ivan Drury: “There is defection from that EV market… it is a mental hurdle to say, “Man, I used to be paying $200 a month. Now you guys want $500?”

The survey of 3,012 buyers and 252 dealers found shoppers now spend one to three months researching, with 44% doing more homework before contacting a store.

Buying a vehicle from a traditional dealership still leads with 90% of buyers preferring them. 66% would consider buying through a dealership website and 25% are more open to buying fully online.

Price is beating loyalty. 31% prioritize value over brand, and 59% would travel farther for a better deal.

EV enthusiasm remains uneven: 60% of dealers are excited, while only a third of buyers say they are ready to consider an EV. Meanwhile 47% of buyers say they may never be ready to buy an EV

He has already collaborated with 15 dealerships across New Jersey, New York and Connecticut, offering stores free social media exposure while building relationships with owners and employees who have become mentors.

Peter’s love for cars began with his late father, Brian McKay, who took him to the New York International Auto Show and dealerships before passing away when Peter was 7.

His next goals include learning fixed operations, landing a dealership internship and eventually studying automotive marketing and management at Northwood University.

Peter said, “My end goal is to own my own dealership or, God willing, dealerships. You get that opportunity to make a big impact in your community.”

One survey found 74% of executives trust AI advice more than colleagues or friends, while 44% would favor its reasoning over their own.

Warning signs include sending lightly reviewed AI-written work, producing polished but shallow “workslop,” and mandating AI before establishing clear governance.

The most damaging habit may be using AI to overrule employees. When objections are repeatedly settled by a chatbot, teams eventually stop speaking up.

The article’s central warning: AI should support executive judgment, not replace scrutiny, accountability or healthy disagreement.

CDG News spoke with 40 industry sources, many of whom questioned Carvana’s website standards, service capacity, inventory practices, market reach, and allocation levels.

Dealers pointed to Carvana’s ability to use its own website platform, national pricing, no document fees, and a sales model that actively promotes itself as an alternative to traditional dealerships.

Service is another flashpoint. Some nearby dealers say they are receiving more warranty and recall work from Carvana customers, potentially placing additional pressure on their technicians and service departments.

Carvana’s Casa Grande CDJR store reportedly sold 998 units in June, becoming Stellantis’ top-selling dealership in the country and fueling questions about allocation and out-of-market sales.

Stellantis says all dealers are treated “fairly, consistently, and in accordance” with established agreements, but dealers worry the model could become an indirect path toward direct-to-consumer retail.

The 2027 Rumble Bee starts at $62,790 with 395 hp, while the 777-hp SRT tops the lineup at $97,790. Two 470-hp versions fill the gap.

Ram shortened the wheelbase by 13 inches and paired a quad cab with a short bed, creating a lower, wider truck designed for pavement performance rather than off-road duty.

Dealers say customer interest is already building. The Rumble Bee could bring performance buyers into Ram showrooms who would not normally consider a pickup.

Optional supercharger kits will push output beyond 600 hp on the base truck and above 900 hp on the SRT, adding another $10,995 before installation.

Edmunds’ Ivan Drury summed up the target buyer: “If someone is even contemplating price ... you’re the wrong customer from the get-go.”

Telo says extensive testing raised the MT1’s tow rating from 6,600 to 8,000 pounds, nearly twice the truck’s estimated 4,400-pound weight.

The dual-motor version produces 500 hp, uses a 106-kWh battery, and is expected to deliver around 350 miles of range.

A single-motor MT1 is expected to start at $41,520 with 300 hp and 260 miles of range. The dual-motor version should begin near $50,000.

Telo has connections to Tesla’s earliest days: Forrest North helped engineer the original Roadster’s batteries, while Tesla co-founder Marc Tarpenning serves on Telo’s board.

Production is targeted to begin before the end of 2026, although the company still faces the familiar challenge of turning an ambitious startup truck into a real production vehicle.