Shoot us a Text.

Tuesday’s here, and we’re rolling through the morning talking about Sonic’s Q2 income growth, Sutherlin Auto donating a custom van to a paralyzed shooting victim, and the surprising fact about Gen Z and home ownership.

Show Notes with links

• Sonic Automotive Inc. experienced a remarkable 76% YoY increase in second-quarter net income, hitting $41.2M, nearly doubling from $23.4M despite setbacks from a cyberattack and a system outage in June.
  • The group sold 27,026 new vehicles (down 3.3%), 25,668 used vehicles at franchise stores (up 1.9%), and 16,641 used vehicles at EchoPark stores (down 2.6%) in Q2​​.
  • Sonic estimated the CDK software outage cut net income by $22.2 million, with $11.6 million in pretax charges for extra employee compensation.
  • Other charges included $3.6 million for hail and storm damage, $1.4 million impairment for EchoPark locations.
  • In March, Sonic launched an initiative to add 300 technicians in 2024, aiming to boost annual fixed-ops gross profit by $100 million, and so far have netted 131 techs in Q2.
• Toyota of Montgomery of Sutherlin Automotive Group donated a wheelchair accessible van to Amy Dicks, an innocent bystander who was paralyzed after being caught in a highway shootout back in April of this year.
  • Amy Dicks was struck by a bullet while driving to work, paralyzing her from the chest down.
  • The donation was made on August 5 as she returned home from months of rehabilitation and the van aims to help Dicks regain mobility and independence.
  • Brett Sutherlin, CEO of Sutherlin Automotive Group, visited Amy in the hospital and expressed deep admiration for her resilience and emphasized the importance of the support.
  • "Providing her with this accessible van is a small gesture to help someone who has faced such tremendous adversity. After meeting her and understanding her situation, it became clear how vital this support is."  Sutherlin stated.
• Gen Z is buying homes at a faster rate than older generations, particularly in the Midwest, with the highest purchase rates in Indianapolis, St. Louis, and Cincinnati, and the lowest in California and the Northeast.
  • Nearly 28% of 24-year-olds owned a home in 2023, surpassing millennials and Gen X at that age, and almost 40% of new mortgages in 2023 went to buyers under 35.
  • Indianapolis had the highest share of Gen Z homeowners at 1.6%, followed by St. Louis and other metro areas like Jacksonville and Kansas City.
  • San Francisco, New York City, Los Angeles, and Boston had the lowest rates of Gen Z homeownership at around 0.1%, with median home values for new Gen Z homeowners exceeding $1 million in San Francisco​​.
  • Gen Z benefits from remote work and lower living costs i

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.

Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/