TOGETHER WITH

Welcome back to Wednesday, Friend!

We’re halfway through the last week of the month, and we’re sure you’ve got a full plate. Which gets a bad rap. Sure, a full plate can be a lot to carry, but it also means you won’t go hungry.

Enjoy the feast, Friend.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

What’s New?

Some new things, and some old things disguised as new things. Hybrids with big batteries are the side sect most really ambitious EV-makers are pivoting to lately. And honestly, we get it. Sometimes, we start a big project and realize we can’t quite finish it after we’ve started. Of course, usually, it’s cleaning a garage for us, not trying to shift a global industry from gas stations to really big cell phone chargers…but, you know. Same-Same.

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Recent Hybrid Announcements

We've been talking about hybrids a lot more since the EV train started rolling back down the hill. Here are a few headlines we grabbed from names across the industry, all talking hybrids and how they factor into the future.

Nissan Adopts Gigacasting to Cut EV Costs and Complexity

Sometimes, "cookie cutter" means lacking uniqueness. Other times, it means some literal cookies are on the way. Gigacasting is like a car-sized cookie-cutter, so we're eager to see if Nissan produces something tedious or...treat-ious with their new gigacasting plan. 🍪

Nissan is set to adopt the technology (following Tesla's lead) to reduce production costs and complexity for its future electric vehicles.

This advanced manufacturing technique, which involves creating large, single pieces of a vehicle's structure, aims to cut EV part costs by 10% and development expenses by $1B.

By simplifying production and reducing vehicle weight by 20%, Nissan's gigacast EVs are expected to hit the market around 2027, contributing to the company's goal of making fully battery-powered cars 40% of its sales by 2031.

It's not like other assembly methods that produce "one-of-one" vehicles. You gotta bring your own hammer to get that. #AfterMarket

Global Automarket Impact: Magna Steyr and Chinese Automakers Localize EV Production in Europe

No matter what happens tomorrow, such as storms, droughts, alien invasions, zombie uprisings, etc., on the NEXT DAY, we will be reading about China's automotive industry all the same. They just never quit, y'all.

Recent discussions between Magna Steyr and Chinese automakers highlight a pivotal move toward localizing EV production in Europe, with potential global ramifications:

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TOGETHER WITH NUMA

And The Winner Is…

This year’s Pitch Tank at ASOTU CON was a blast, and we want to extend a heartfelt thank you to all of our collaborators who participated. Your innovative presentations and dedication to advancing the retail auto industry were truly inspiring.
🤩

On the last day, our finalists Constellation, Numa, and Space Auto faced off and a winner was crowned…

Congratulations to Numa ! With their AI-powered features, Numa is revolutionizing dealership performance by capturing every repair order, automating appointment booking, and enhancing customer service with live DMS activity integrations. Their innovative solutions are turning customers into loyal fans and empowering employees to deliver exceptional experiences. It’s no wonder they came out on top!

Ready to see Numa's winning solutions in action? Schedule a demo today!

DATA & INSIGHT

New Tariffs Targeting Chinese Imports

Last week, we asked how concerned you all were about the new U.S. tariffs on Chinese goods. While the response was definitely a mixed bag, it seems the majority of you are at least “Mildly Concerned.”

🟨🟨🟨🟨⬜️⬜️ 🔴 Highly Concerned - Higher import duties will raise the cost of vehicles and parts, leading to increased prices for consumers.

🟩🟩🟩🟩🟩🟩 🟡 Mildly Concerned - There will be some cost increases, but the benefit of increased domestic manufacturing outweighs the negatives.

🟨🟨🟨🟨🟨🟨 🟢 Not Concerned - The tariffs will have little to no effect on dealerships due to already low import levels of Chinese EVs.

So, we wanted to take a closer look at what these tariffs will actually affect and what it may mean for the future of auto .
 

The new wave tariffs target over $18B worth of Chinese goods on things like electric vehicles, batteries, and critical minerals in an effort to boost domestic production and curb what the U.S. gov sees as unfair trade practices.

While this might sound like a bold move, it seems it may be more about maintaining the status quo than shaking things up.

⚡️ EVs — One of the biggest headlines from the increase came from new tariffs that hike up the cost of Chinese electric vehicles a staggering 100%. While China is the world’s largest producer of EVs, the U.S. already imports very few due to existing trade restrictions, but this move ensures Chinese EVs don’t gain an advantage despite their competitive pricing. 


🪫  Battery Supply Chain — Tariffs on Chinese lithium-ion batteries will rise from 7.5% to 25%. Given that China supplies about two-thirds of U.S. EV battery imports, this probably should have been the bigger headline.

💎  Critical Minerals — New tariffs on critical minerals essential for battery production and semiconductors will also increase from 0% to 25% by 2026. This gives suppliers some time to diversify away from Chinese sources, though it’s a tough ask given China’s current dominance in this sector.

🎬 Final Thoughts — While these tariffs may be more preventative than dramatic, it’s important to remember that tariffs are not paid by China but by U.S. importers who ultimately pass those costs on to domestic consumers. A valid concern when affordability is already a major issue for many American buyers.

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