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Episode #1005: The biggest dealership groups continue their march toward market dominance while Toyota’s hybrid boom is pushing suppliers to the limit. Meanwhile, Gen Z graduates face a tough reality as government hiring freezes throw career plans into chaos.

Show Notes with links:

• The biggest names in auto retail continued their dominance in 2024, with the top 150 dealership groups expanding their footprint and market share. Growth, acquisitions, and shifting strategies defined the rankings, showing how consolidation is shaping the future of the industry.
  • The top 150 groups sold over 4 million new vehicles in 2024, up 7.2% from the previous year, and now own 26.6% of all U.S. franchised dealerships, up from just 13.9% in 2011.
  • Holman made the biggest leap, climbing 17 spots to No. 15 after acquiring Leith Automotive Group.
  • Some of our other friends on the list: 140-DeMontrond, 134-Casa, 83-Sam Pack Auto Group, 80-Carter Myers Automotive, 70-DGDG, 60-Rohrman, 58-Bergstrom, 43–Ciocca, 32-Walser, 16-Ourisman
  • “The top 10 reported owning 10.5% of U.S. dealerships, continuing the trend of industry consolidation,” said Mary Raetz, director of the Automotive News Research & Data Center.

• Toyota’s hybrid strategy is paying off—maybe too well. Soaring global demand for its gasoline-electric hybrids has outpaced supply, leaving customers facing long wait times and suppliers scrambling to keep up.
  • Wait times for Toyota hybrids range from 60 days in Europe to nine months in India.
  • Parts shortages, including key components from suppliers like Aisin and Denso, are causing production bottlenecks.
  • Toyota is ramping up output, including a $14B battery plant in North Carolina set to ship batteries in April.
  • Global hybrid sales nearly tripled over five years, hitting 16.1 million in 2024.
  • The surging demand has led to soaring dealership valuations in the US. According to Mercer Capital, Toyota dealerships in metro markets, particularly in Florida, can command valuation multiples as high as 10 times earnings in today’s market.

• ​​The class of 2025 is stepping into a tough job market, with tech downturns, federal hiring freezes, and economic uncertainty making it harder than ever for new grads to secure stable careers. Many are rethinking their career plans as public sector opportunities shrink.
  • Government job applications nearly doubled in 2023, but hiring freezes have now put many positions on hold.
  • Some federal job offers have been rescinded, and funding-dependent industries like nonprofits and universities are also feeling the squeeze.
  • Economic shifts, including tariff concerns, have made companies hesitant to expand hiring.
  • Many students are prioritizing stability over passion, with some opting for private-sector jobs

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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