🗞️ Industry roundup:
FROM WARDSAUTO: Retail ride still bumpy, but good news is ahead
November 2024 marked strong new-vehicle sales, with a 6.7% YoY increase and consumer spending reaching nearly $50 billion, a record for the month. However, rising inventory levels and deeper discounts have driven down average transaction prices and dealer profits, with per-unit retailer profits dropping 21.2% compared to last year. Despite challenges like declining trade-in equity and high interest rates, resilient consumer demand positions the market for a solid close to 2024.
FROM NBC NEWS: Stellantis CEO Carlos Tavares resigns amid problems in U.S., falling sales
Stellantis CEO Carlos Tavares’ resignation comes amid significant challenges for the automaker, including a 20% year-over-year drop in global vehicle sales during Q3 and a prolonged decline in the critical U.S. market. Dealers are facing the impact of underinvestment in new products, historically high prices, and aggressive cost-cutting measures, which have led to a 27% decline in Q3 net revenues and a downward adjustment of the company’s annual guidance. As leadership transitions and strategies realign, dealers may need to brace for continued market uncertainty and diminished consumer demand.
FROM CBT NEWS: Hyundai and Kia shatter November sales records with EV lineup gains
Hyundai and Kia achieved record-breaking U.S. sales in November, driven by strong demand for electrified vehicles, signaling continued growth in the EV market. Hyundai sold 76,008 units, an 8% year-over-year increase, with electrified sales surging 92%, including a 114% rise in hybrids and 70% in EVs. Kia delivered 70,107 units, a 20% increase, with electrified sales up 45%. These results highlight the growing consumer shift toward EVs and hybrids, positioning Hyundai and Kia as key players in the accelerating electrification of the automotive market.
FROM CAR AND DRIVER: How a 25% tariff on goods from Mexico and Canada could affect the auto industry and car buyers
President-elect Donald Trump has announced plans to implement a 25% tariff on goods from Canada and Mexico and an additional 10% tariff on Chinese imports, citing border security and trade concerns. Automakers, with significant manufacturing operations in Canada and Mexico, may face increased costs and logistical challenges, potentially leading to higher vehicle prices and shifts in production strategies. These tariffs could impact the availability and pricing of vehicles for consumers in the U.S. market.
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