I agree with CDG on many points from this interview but have a different perspective on some:
→ Tariffs protect jobs short-term but lead to higher consumer prices. Long-term, they rarely work, as seen with the U.S. steel and global solar panel industries.
→ Chinese cars will eventually enter the U.S. market — just a fact. Emphasize competitiveness and innovation vs. tariffs. Chinese EVs are like a #wildfire, spreading quick and hard to contain.
→ The U.S. market lacks a mid-$20,000 entry-level #EV. Automakers must prioritize affordable options.
→ Low interest rates spoiled consumers with feature-rich cars/SUVs/Trucks. Higher rates are pushing them toward smaller, less expensive options.
→ BEV manufacturing will soon become way more cost-effective than making ICE — China already leading. Software sales offer significant revenue opportunities.
→ The U.S. EV market is recalibrating after an oversupply of ‘subpar’ models that people don’t want to buy. Focus is on “crossing the chasm” to attract pragmatic buyers.
→ Higher leasing penetration and creative financing will reduce payments, making cars more accessible. F&I capabilities will be pushed/tested.
→ Meeting customers where they are is key — always. PHEVs is a bridge.
I enjoy listening to CDG interviews. Great job, Car Dealership Guy.
ICYMI: Discussing the potential for cheap electric vehicles entering the United States.
My feature on CNBC Power Lunch earlier this week.
Let me know your thoughts below!