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Episode #1335: Inventory tightens as hybrids fly off lots, Hertz leans into retail with an eBay storefront, and Delta redraws the snack map—cutting service on shorter flights while upgrading longer ones.

Show Notes with links:

• New-vehicle inventory tightened heading into May, with hybrid demand doing its best “hot ticket on the lot” impression. Catalyst IQ says overall supply dipped month over month, while hybrids and EVs hit record demand and supplies of those models shrank.
  • U.S. light-vehicle inventory fell to 2.85 million, down 2.7% from April but still up 1.2% year over year.
  • Industrywide days’ supply dropped to 76 days, down from 80 in April.
  • Hybrids are moving fastest, averaging 59 days on lots, compared with 75 for gas vehicles and 114 for EVs.
  • Small and midsize sedans remain tightest by segment, while half-ton pickups have thinned, partly due to F-150 shortages tied to the Novelis fire.
  • Toyota Motor North America’s reported days’ supply stayed flat month over month.

• Hertz Car Sales is doubling down on retail, expanding its reach with a new digital storefront on eBay as it shifts away from wholesale channels. The move puts its near-new inventory in front of millions of online shoppers.
  • Hertz Car Sales launched an eBay storefront with 8,000+ certified vehicles available nationwide.
  • The initiative is part of its strategy to make retail its primary sales channel, rather than wholesale.
  • Vehicles are typically one year old or newer, priced below new, and sourced from its rental fleet.
  • The company continues building an omnichannel approach across its site, Amazon Autos, and Rent2Buy.
  • “It gives us access to millions of in-market shoppers… and supports a scalable retail model,” said EVP Chris Berg.

• Delta is trimming its onboard snack game, tightening service on shorter flights while boosting it on longer ones. Starting May 19, the airline will shift to a distance-based approach that could mean fewer Biscoff cookies—or more, depending on your route.
  • Complimentary snacks and drinks will only be served on flights over 350 miles for Main and Comfort passengers.
  • Over 450 shorter flights (under 349 miles) will lose current express service offerings.
  • Some mid-range flights actually get an upgrade, moving from limited to full service.
  • Delta says the change is about creating a “more consistent experience” across its network.
  • First-class service remains unchanged across all flight lengths.

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 #1334: Dealers face workforce cuts as Group 1 trims costs, Ford’s secret EV project reveals how it plans to hit a $30K price point, and Harley-Davidson shifts back to entry-level bikes to drive volume, boost dealer profits, and reconnect with new riders.

Group 1 Automotive has reduced its U.S. workforce by nearly 700 employees in April as leadership responded to a slower retail market and leaned further into technology to improve efficiency.

• Executives said the company cut about 5% of its U.S. workforce across dealerships and corporate roles to reduce costs.
• CFO Daniel McHenry said the cuts will save about $35 million annually, while vendor reductions add another $15 million in savings.
• CEO Daryl Kenningham said leadership reviewed “costs by store and market and business unit” and assigned new staffing targets accordingly.
• Leadership said the company protected service technicians and retained roles tied to training, development, and retention initiatives.
• Kenningham: “We feel like we have enough technology overlay that’s going to compensate for those lower productivity salespeople that we might have separated with,”

We’ve talked about Ford’s low-cost EV project before, but now we’re getting a clearer look at how they plan to actually make money on a $30K electric truck.

• A Wall Street Journal article is detailing how the Ford program led by Silicon valley engineers is focused on stripping costs out of EVs.
• Ford insiders said the “techie outsiders” and legacy engineers initially struggled with “misunderstandings and distrust,” as fast-moving, risk-tolerant Silicon Valley approaches clashed with Ford’s more cautious, process-heavy culture.
• The development team cut parts, simplified wiring, and redesigned assembly using large castings and modular builds to reduce labor and complexity.
• Engineering lead Alan Clarke said, “We can look at it as, ‘The Chinese are really far ahead and it’s really scary that they’re coming.’ But, get off your ass and do something about it.”

Harley-Davidson is pivoting hard toward affordability, bringing back the Sportster and launching lower-cost models as it tries to reverse years of declining sales and reconnect with a broader rider base.

• Harley leadership is returning to entry-level bikes after years focused on high-priced touring models that boosted margins but hurt unit sales.
• CEO Artie Starrs said the revived Sportster will start around $10,000, while a new Sprint model is expected near $6,000 to drive volume.
• The strategy aims to grow dealer profitability, with plans to double profits this year and quadruple them by 2029.
• Harley is also pushing more showroom traffic by requiring online merchandise purchases to be picked up at dealerships.
• CEO Artie Starrs said, “Our riders want it, which means our dealers want it, which is why we’re so passionat

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 #1333: Used-car consolidation accelerates as the biggest dealer groups tighten their grip, Ford opens up employee pricing to drive volume, and Audible tests a bold physical retail concept. It’s all about scale, strategy, and finding new ways to connect with today’s customer.

Show Notes with links:

• Automotive News dropped its 2026 Top 100 used dealer group ranking, and the big headline is scale: the top 100 retailed 3.45 million used vehicles in 2025, up 1.4%, while the top 10 alone moved 52% of the total. Big stores got bigger, and the used-car chessboard got sharper.
  • Lithia stayed on top with 435,070 used units, followed by AutoNation at 269,558, Group 1 at 234,906, Penske at 226,301, and Sonic at 171,838.
  • Group 1 had a monster year, jumping from 209,687 to 234,906 used units, while Hudson Automotive cracked the top 10 with 72,044 units after a big gain from 2024.
  • The list also shows plenty of movement below the giants, with new names including DriveChoice, Price Family Dealerships, Sam Pack, Bob Moore, Young Automotive, Bayway, ZT, Hiley, and American Motors Group.
  • Takeaway for dealers: used-car scale is still a weapon, but so is execution. The groups climbing fastest are proving inventory discipline, acquisition strategy, and turn speed still matter more than just rooftop count.

• Ford is opening up employee pricing to the public on most 2025 and 2026 models, leaning into affordability concerns while trying to keep volume strong. The move comes as competition tightens and buyers remain cautious on big purchases.
  • Ford extends employee pricing broadly to attract cost-conscious buyers sitting on the sidelines.
  • The strategy aims to boost showroom traffic and maintain plant utilization in a competitive market.
  • Q1 2026 results show solid footing with $43B revenue and $2.5B net income, helped by a $1.3B tariff refund.
  • The big question: will increased volume offset thinner margins or create a discounting habit?

• Audible is stepping into the physical world with a limited-time NYC pop-up designed to bring audio storytelling to life. The 6,000-square-foot “Story House” blends retail, community, and immersive tech into a new kind of media experience.
  • Audible opened a three-story listening lounge in Manhattan, running through May 31.
  • Features include Dolby Atmos rooms, live events, and interactive “story tiles” for browsing content.
  • The space blends digital and physical, letting users sample, stream, and engage with content on-site.
  • Community-driven programming includes creator panels, fan events, and themed experiences.
  • James Finn, Audible's global head of brand and content marketing:“What does a bookstore look like without any books? A place where audio storytelling comes alive.”

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/