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Episode #1120: Today we cover Presidio’s latest report showing dealership profitability gaining stable ground. We look at how automakers are shifting from solo efforts to shared platforms in the race for software-defined vehicles. We close with a growing workforce trend as quiet cracking challenges employee wellbeing and productivity.

Show Notes with links:

• Presidio Says the Sugar High’s Over, But the Game’s Still Strong as the latest Presidio Group report shows that after a volatile couple of years, dealers are finally catching their breath. With stable margins, strong profitability, and M&A picking back up, it’s no longer about surviving—it’s about playing to win.
  • New-vehicle margins ticked up in Q2 for the first time since 2022, signaling rare pricing stability.
  • Used cars, F&I, and fixed ops are carrying the profit torch, with public group net income up 17.7%.
  • M&A activity matched last year’s pace, with 208 transactions in the first half of 2025.
  • 72% of dealers expect profits to hold or grow—fueling strategic investments instead of survival tactics
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• As the software-defined vehicle era pushes forward, automakers are realizing that trying to own the whole tech stack isn't just hard, it’s inefficient. Instead, they’re cutting internal software efforts, embracing open-source collaboration, and betting on smarter, shared development models.
  • Ford ended its FNV4 architecture program, VW cut 1,600 Cariad staff, and others have scaled back internal software teams.
  • Despite sounding like a retreat, these moves signal maturity, OEMs are focusing on what matters and outsourcing the rest.
  • Partnerships are growing fast: Foxconn and Elektrobit, BMW and Bosch via Eclipse Foundation, Rivian and VW, all working on shared SDV platforms.
  • Analysts say open-source platforms are now essential to SDV progress. Toyota, Hyundai, GM, and others are already building around Linux-based ecosystems

• Move over, quiet quitting. The latest workplace challenge is “quiet cracking,” where employees keep showing up, but they’re checked out, stressed, and silently struggling. And in today’s uncertain job market, many feel stuck without better options.
  • Quiet cracking is marked by disengagement and burnout, even if employees aren’t actively underperforming.
  • Workers are staying in roles due to fear of layoffs or poor hiring prospects, not because they’re thriving.
  • Signs include subtle performance dips, increased absenteeism, and

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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