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Episode #1009: Today we sit with COO of Matthews Auto Group Vincent Salvagni to discuss the question on every Dealer’s mind; What should I be doing with my inventory level? As consumers rush to beat tariffs, Dealers are worried about overpaying for replacement inventory and getting stuck holding the bag when things normalize. 

We also talk about Nissan delaying production cuts at its Smyrna, TN plant and Carvana's approach to the tariff headwinds. 

Show Notes with links:

• Nissan’s plans to cut a production shift at its Smyrna, TN plant have been reversed thanks to new U.S. tariffs on imported vehicles. The automaker is prioritizing domestic output to avoid hefty import duties.
  • Nissan initially planned to end a shift at Smyrna as part of a 9,000-job global cut.
  • Keeping U.S. production high avoids tariffs on Japanese-made Rogues, which made up over a third of 2024 U.S. Rogue sales.
  • Workers had already been offered buyouts; Nissan hasn’t confirmed how many accepted.
  • “It could mean saving jobs or it could be hiring people,” said a Nissan spokesperson.

• Carvana is stepping into the tariff era with confidence, positioning itself to capture increased used-car demand as new vehicle prices rise. After turbulent years marked by overestimation and investor skepticism, the company has streamlined operations and could now benefit from changing consumer habits.
  • New 25% tariffs on imported vehicles may steer price-conscious buyers to the used market.
  • Analysts expect an initial bump in used-car sales, especially from buyers priced out of new models.
  • Carvana has reined in costs, insourced inspections, and restructured debt, improving operational health.
  • Despite holding $5.6B in debt, the company is now generating enough cash to begin self-financing.
  • “We’re in a much stronger position than we were 3–4 years ago,” said CFO Mark Jenkins

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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