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After a much-needed rest day, we’re refreshed from the 2025 NADA Show! Today, we talk about the massive victory for car dealers as a US Appeals Court has tossed the CARS Rule. Plus, we recap the make meetings at NADA that were able to happen and download you on Deepseek, the AI disrupting big tech.

Show Notes with links:

• A major legal victory for auto dealers comes as a U.S. appeals court strikes down the Biden administration’s FTC CARS Rule aimed at regulating dealer pricing and add-ons, along with a looming compliance burden.
  • The 5th U.S. Circuit Court of Appeals ruled 2-1 that the FTC failed to follow proper procedures in creating the rule.
  • The regulation, which was on hold pending legal challenges, would have required upfront pricing and banned certain add-ons deemed “junk fees.”
  • NADA and TADA led the legal challenge, arguing the rule would add unnecessary complexity and cost to the car-buying process.
  • NADA President Mike Stanton praised the decision as a “victory for the rule of law and a great outcome for consumers.”

• The make meetings at the NADA Show is the premier opportunity for dealers to meet with factory execs and discuss the year ahead—but the massive snowstorm kept 10 of 26 brands from making it to New Orleans. While some dealers were understanding, others were frustrated. For the brands that made it, key updates were shared.
  • Stellantis pushed a big comeback after a rough 2024, telling dealers to expect major improvements in sales and marketing. Alfa Romeo is also walking back its all-EV plans in favor of a multi-energy strategy.
  • Ford doubled down on affordability, bringing back base trims of the F-150, Escape, and Explorer, plus a new entry-level Bronco. New marketing for the Maverick and Bronco Sport highlights their sub-$30K price tags.
  • Nissan acknowledged dealer struggles, with new Americas Chairman Christian Meunier vowing to improve dealer profits and return on sales. Infiniti will cut the QX50 and QX55 by year’s end.
  • Subaru shifted allocation to state-by-state, adjusting for emissions regulations and market conditions instead of regional zones. Incentives will now vary by state.
  • GM will stay the course under Trump, reassuring dealers that policy shifts won’t impact product plans, even as new tariffs loom. Cadillac still aims to lead luxury EVs in 2025.

• The AI stock boom faced a major reality check as China’s DeepSeek introduced an AI model that rivals OpenAI—but with a fraction of the computing power. The news sent Nvidia’s stock plummeting 17%, wiping out nearly $600 billion in market value in a single day, the largest loss in history for a public company.
  • DeepSeek’s AI model challenges the assumption that advanced AI requires vast amounts of Nvidia’s high-end chips, rattling the entire AI supply chain.
  • DeepSeek’s model solved problems faster than OpenAI’s and required fewer res

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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