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Episode #1320: Today we unpack how CarMax is leaning into older inventory, Rivian is powering plants with old batteries, and resale is becoming the new customer acquisition engine for brands.

Show Notes with links:

• CarMax is leaning into lower-priced, higher-mileage inventory and looser credit to tackle affordability—but Wall Street isn’t buying it yet. Despite solid earnings, shares slid as investors question the cost and timeline of the turnaround.
  • CarMax stock dropped 14% after earnings, even with results meeting expectations.
  • The company is pausing share buybacks to preserve cash for a turnaround strategy.
  • CarMax is increasing its mix of older, higher-mileage “value” vehicles to meet affordability demand, now ~35% of inventory.
  • Its finance arm is working with stretched buyers, noting most customers outside top-tier credit are struggling with payments.
  • “This year we have absolutely increased our sales of older cars to meet the customer where they want to be met on affordability,” said CFO Enrique Mayor-Mora.

• Rivian is tapping into its own retired EV batteries to power its Illinois plant, partnering with Redwood Materials in a move that cuts energy costs and grid reliance—while hinting at a bigger long-term infrastructure play.
  • Once completed, the factory will draw power from 100+ reused EV batteries in a footprint the size of a small parking lot.
  • The setup will reduce reliance on the power grid, especially during peak demand hours.
  • The system is expected to deliver 10 MWh of energy, roughly equal to 1,000 home battery units.
  • Rivian sees potential to expand battery reuse across facilities, with more projects likely as it scales production.
  • “There’s hopefully a lot more… and there’s going to be a lot of batteries we’ll have access to,” said CEO RJ Scaringe.

• The global resale market is surging as affordability pressures push consumers toward secondhand goods—creating a powerful new customer acquisition channel for brands.
  • The global resale market is projected to hit $317B by 2027, up from $256B in 2025.
  • 84% of resale shoppers use secondhand platforms to discover new brands.
  • 58% of shoppers who first buy a brand secondhand go on to purchase new items from that brand.
  • “This is an interesting way for higher-price-point brands to acquire new customers,” said McKinsey’s Colleen Baum.

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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Episode #1319: Dealers prove growth doesn’t require more rooftops, Amazon inches into car sales with real-world friction, and Slate Auto raises $650M to bring its affordable EV vision closer to production reality.

Show Notes with links:

• Forget “grow or die”—2025 proved you can win without adding rooftops. Many Top 150 groups drove serious gains through operational discipline, not acquisitions, signaling a shift toward smarter, not just bigger, dealership strategies.
  • 52 groups grew new-vehicle sales with zero footprint change, pointing to stronger same-store execution.
  • High performers leaned into used-car ops, inventory availability, and internal GM development.
  • Great Lakes Auto Group climbed 19 spots to #88, boosting volume 28% while holding steady at nine stores.
  • Late-year acquisitions (Q4 closings) meant organic performance—not M&A—drove most gains.
  • “We think that scale helps… but I don’t think it’s absolutely necessary,” said Hudson Automotive (#11) CEO David Hudson.

• Amazon is upping its new-car retail platform, and yes, you can now buy a Corvette there. What started with Hyundai has expanded to include multiple brands, bringing digital-native shopping into a $1.3T dealership market.
  • Amazon Autos now features Hyundai, Kia, Mazda, Subaru, Chevrolet, and Jeep in 130+ cities.
  • Customers can browse, price, finance, and start paperwork online, reducing time in-store—not replacing it.
  • Dealers pay to list inventory, gaining high-intent traffic from Amazon’s massive audience.
  • Early friction like inventory sync issues and incomplete deal structures highlights the complexity of auto transactions.
  • “Customers have a level of comfort with Amazon… but it’s definitely just in the starting phase,” said dealer Matthew Phillips.
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• Slate Auto just locked in $650M in Series C funding, keeping its low-cost EV truck plans on track—and putting a spotlight on its next big milestone: production.
  • The funding supports next-stage development and production ramp at its Indiana facility.
  • Slate just crossed the 160K reservation mark and still targets late 2026 deliveries, with preorders expected to open in June.
  • The truck will start at a mid-$20K starting price, using a stripped-down base model with modular add-ons that let customers upgrade into things like a 5-seat SUV or fastback configuration.
  • The company plans to invest $400M in its plant, creating 2,000+ jobs.
  • “We will deliver Slate Trucks at nearly half the cost of the average new vehicle—as promised,” said President Chris Barman.

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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Episode #1318: Penske climbs the dealer ranks as consolidation continues, Tesla sends off Model S/X with a pricey Signature Series, and $4 gas is pushing consumers online.

• Automotive News’ 2026 Top 150 Dealer ranking saw some notable movement as acquisitions and stronger same-store sales reshaped the leaderboard.
  • Penske Automotive moved to No. 2, bumping AutoNation to No. 3, while Lithia holds the top spot yet again.
  • Penske’s growth was fueled in part by high-volume California and Texas store acquisitions now fully counted in 2025 results.
  • The Top 150 sold 4.14M vehicles, increasing their share of total U.S. sales to 27%.
  • Despite selling more cars, the Top 150 owns fewer rooftops overall—continued consolidation in action.
  • 81 groups moved up overall and 23 gained double-digit spots.
  • Public retailers increased their share of Top 150 sales to 34.3%, highlighting their growing influence.
  • 14 currently represented at ASOTU CON: Lithia, Holman, Ourisman, LaFontaine, DARCARS, Walser, McGovern, Zeigler, RML Automotive, American Motors Group, CMA, Huffines, Casa, Preston Auto Group.

• Tesla is closing the chapter on its flagship sedans and SUVs with an ultra-exclusive, invite-only “Signature Series” run. With just 350 units and premium pricing, it’s a nostalgic—and pricey—farewell to the brand’s roots.
  • Tesla will build just 350 units (250 Model S, 100 Model X), available only via invite to select owners.
  • Exclusive Garnet Red paint, gold badging, and numbered interiors highlight the collector-focused design.
  • The pricing reflects rarity, with the Model X Signature hitting $159K—about a $30K premium.
  • These models will mark the end of Model S/X production as Tesla shifts factory capacity toward Optimus robots.
  • Elon Musk previously called it an “honorable discharge,” closing a chapter that started in 2012.

• Rising gas prices are pushing more shoppers to skip store trips altogether. A sharp spike in online spending suggests convenience—and avoiding the pump—is becoming a bigger factor in buying decisions.
  • Online spending jumped 20% in March, far above typical monthly gains, as gas prices topped $4.
  • Orders rose 12% and average order value increased 8%, showing bigger and more frequent purchases.
  • In-store shoppers are consolidating trips, making fewer visits but spending more per trip.
  • 83% of consumers cite gas as a top cost concern, with many shifting to online to avoid driving.
  • “When gas crosses a psychological price threshold, the math changes,” said Omnisend’s Marty Bauer.

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.

Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/