Highlights From Auto Team America Buy-Sell And CEO/CFO Forum At Nada

Each year members of the Crowe MacKat Automotive Group attend the NADA Annual Meeting, below are highlights from the event.

Industry

• Sale of 16.2M units in 2025, projected to be 15.8M units in 2026.
• Potential for 16.5M units due to demand, but supply constraints expected again for 2026.
• Gross down slightly in 2025 for new and used with small increase for F&I products.
• Gross for fixed operations similar to 2024.
• Outlook for domestic manufacturers looks good with introduction of new products.
• Manufacturers in the US only utilizes 68% of current facilities and will build as needed.
• Market in North America continues to be light truck and SUV focuses with 84% of sales.
• Average price of a vehicle in the US hovers around $50,000.
• 30% lease penetration in the past, but declined to 16% in past few years resulting in a depressed used market.
• Fixed operations will be challenged due to independent shops taking market share and less vehicles sold in past few years due to supply. However, it is still a driver of profitability seeing an 8.3% growth year over year compared to 6.2% in 2024.
• As personnel costs continue to escalate, dealerships take on a “grow your own” mentality through investments in personnel.
• Personnel expense reaching 45% of gross profit for dealers versus 19% for Carvana.
• AI expected to improve productivity in 2026.

Mergers and Acquisitions

• Dealers positive for next year and the 3 year outlook.
• 393 transactions involving 491 dealerships sold in 2025.
• Top 150 dealers sold 378 dealerships in 2025.
• Top 150 dealers in the US own 55% of the luxury brands.
• Recent surveys reveal that 60% of dealers interested in buying and 4000 dealers wanting to grow.
• Dealership owners with 25 or more rooftops increased 300% from 2010 compared to 2024.
• Dealership owners with 5 or less rooftops decreased 6 percent over the same time frame.
• Very little change in past 10 years for multiples.
• Geography, brand, real estate, leadership, return, state regulations are key drivers for managing portfolio.

EV Update

• Tesla and Chinese manufacturers still not as profitable as legacy manufacturers.
• Hard to justify more investment in EV infrastructure given decline in EV sales due to lost tax credit and falling demand.
• EV market mainly driven by politicians rather than customer preferences.
• Hybrid alternatives have become the preferred drivetrain over ICE and EV.
• Servicing EV still profitable due to warranty work.
• Fixed operations still profitable for EV especially tires and batteries.
  

Chinese Vehicles

• China exported 8.3M units in 2025 to all countries, except Canada and US.
• Current capacity of manufacturing facilities can produce 54M units, but only 34M were produced in 2025.
• China produces more units than Japan, US, India, Italy and Germany combined.
• BYD tops all Chinese manufacturers and surprisingly sells 57% ICE. Distribution done through its own shipping freight carriers which can deliver 5000 units per shipment.
• Price for Chinese vehicles range from $20,000 to $150,000.
• Still needs a mean to sell and service.
• Vehicles are better quality than 10 years ago especially in the technology area, but still needs some refinement in drivability.
• China looking to takeover the auto industry.

The 2040 Vision Study is now available on the AutoTeamAmerica website at www.autoteamamerica.com

Stellantis is the latest to announce the impact on its bottom line from the EV pullback.

It was just a few years ago when automakers were rushing to invest billions in electric vehicles, which at the time were seen as a surefire bet. However, consumers just haven't gravitated toward EVs at a rapid rate, largely due to pricing disparity and concerns over charging infrastructure. As such, Ford is pivoting back to hybrids while it continues to develop more affordable EVs, and it certainly isn't alone in that regard. Trouble is, these types of pivots are pricey, and Stellantis is now feeling the financial pain of those decisions, too.
Stellantis has announced that its decision to cancel EV projects including the all-electric version of the Ram 1500, coupled with the development of new gas- and hybrid-powered models, will cost it right around $26 billion USD. It took much of that charge in the second half of 2025, but the total also includes cash payments of approximately $7.7 billion, which are expected to be paid over the next four years.

"The reset we have announced today is part of the decisive process we started in 2025, to once again make our customers and their preferences our guiding star," said Stellantis CEO Antonio Filosa. "The charges announced today largely reflect the cost of over-estimating the pace of the energy transition that distanced us from many car buyers’ real-world needs, means and desires. They also reflect the impact of previous poor operational execution, the effects of which are being progressively addressed by our new team."

Stellantis has shifted its strategy in a big way as of late, concentrating more on hybrids than EVs amid regulatory and demand shifts, though it remains dedicated to rolling out new pure electric models in the coming years, regardless. Last August, the automaker also opted to shelve its own Level 3 advanced driver assistance program due to the high costs of development, technological challenges, and weak consumer demand for such a product.

Source: Ford Authority and Autoweek

Canada’s freshly revised federal EV incentive rules look simple on the surface, but they get complicated fast once you start applying them to real vehicles on dealer lots. For GM shoppers north of the border, the short answer is that technically every GM EV could qualify. The long answer is that only a small handful actually do, at least without discounts doing some heavy lifting.

Under the updated framework, any battery-electric vehicle built in a country with a free trade agreement with Canada can qualify for the federal rebate, provided its transaction price comes in at CA$50,000 or less. That transaction price includes MSRP, destination freight, the $100 A/C tax, and dealer fees, but excludes sales taxes. Vehicles built in Canada receive special treatment, as they are exempt from the price cap altogether.

That opens the door in theory for most GM EVs, since GM builds vehicles in several free-trade partner countries. In practice, pricing shuts that door almost immediately. The U.S.-built 2027 Chevy Bolt remains the cleanest fit. The Bolt LT starts at $43,398, while the RS begins at $45,998, keeping both trims under the threshold. Add the Super Cruise Package to the RS, however, and the transaction price pushes past $50,000, making it ineligible. The Mexican-made 2026 Chevy Equinox EV LT FWD also technically qualifies, but just barely. With no options, it starts at $49,598. Even minor accessories, such as splash guards, are enough to tip it over the limit. BrightDrop is the wildcard. Because the electric delivery van was built in Canada, all remaining in-stock units qualify for the full $5,000 rebate regardless of price, at least on paper. Everything else in the GM EV portfolio starts well north of the cap. The 2026 Cadillac Optiq opens at $60,998, the 2026 Chevy Blazer EV at $59,098, and the 2026 Chevy Silverado EV at $67,598. GM also has no plug-in hybrids to bridge the gap.

There is, however, an escape hatch: transaction price means discounts matter. GM is currently advertising up to $10,000 off remaining 2025 Blazer EV inventory in Canada, which could pull the base LT FWD into rebate territory. As Transport Canada puts it, eligibility hinges on the “transaction price, before applicable taxes.” 

Still, massive incentives on higher-end models remain unlikely. Unless GM and its dealers lean hard on rebates, the practical answer for Canadian buyers is straightforward: Chevy Bolt, BrightDrop, and a base Equinox EV LT FWD with zero extras.

Source: GM Authority

(Note: while this analysis focuses on GM the same criteria apply to all manufacturers)

Don’t let multiple winter storms and snow piled high on roadsides fool you. The wholesale vehicle market is showing the slightest signs of spring. And vehicle values are increasing faster than expected. That’s according to industry observers releasing their monthly insights on used-car values, which show an earlier and quicker rise in what vehicles are fetching in the wholesale market. In fact, one wholesale price index reached its highest level in almost two-and-a-half years.

Source: Auto Remarketing

The 2026 Chevy Tahoe is substantially less expensive for buyers north of the border than it is for customers in the United States, even after accounting for taxes, fees, and currency conversion.

A GM Authority analysis has revealed that every trim level of the latest full-size SUV carries a meaningful price advantage in Canada, with savings ranging from roughly USD $3,600 on base models to more than USD $6,300 at the top of the lineup. As a reminder, the Chevy Tahoe is built in Arlington, Texas.

The prices in the table below factor in destination charges, $100 federal air-conditioning tax and $699 for dealer fees as well as the luxury tax on vehicles over $100,000.
 

2026 Chevy Tahoe Pricing – USA vs Canada

Trim	USA MSRP (US$)	Canada MSRP (CAN$)	Canada MSRP (US$ Equivalent)	Difference US vs Canada (US$)
LS 2WD	$63,495	$81,898	$59,903	$3,592
LS 4WD	$66,495	$85,398	$62,463	$4,032
LT 4WD	$69,495	$89,495	$65,460	$4,035
Z71 4WD	$73,495	$94,498	$69,119	$4,376
RST 4WD	$74,495	$95,498	$69,851	$4,644
Premier 4WD	$81,395	$104,198	$76,214	$5,181
High Country 4WD	$86,495	$109,604	$80,168	$6,327

Honda added to a chorus of global automakers warning of the costly fallout from slowing demand for electric vehicles and persistent pressure from U.S. President Donald Trump’s tariffs. The automaker said one-time EV-related expenses, including losses and impairments on vehicles sold in the U.S. and write-offs of development assets, cost it ¥267.1 billion ($1.7 billion) in the nine months ended Dec. 31. On top of that, Honda saw a ¥279.5 billion hit from U.S. import duties.

Source: Bloomberg via Automotive News

The U.S. Department of Transportation on Feb. 10 proposed increasing American content requirements for federally funded electric vehicle charging stations from 55% to as much as 100. The proposal, first reported by Reuters, would take effect immediately once the changes are finalized. Transportation Secretary Sean Duffy said the higher domestic content threshold would “strengthen domestic manufacturing” and protect Americans from “foreign-made” components that may pose cybersecurity risks. Additionally, the department said it believes manufacturers have the capacity to produce EV chargers in U.S. facilities.

Source: CBT News

German luxury car manufacturer Mercedes-Benz Group on Thursday reported a steep drop in full-year profit and warned of challenging times ahead, following a year marred by intense competition from Chinese rivals and global tariff costs. The automaker posted full-year operating profit of 5.8 billion euros ($6.9 billion) in 2025, reflecting a 57% drop from a year ago. The result was significantly lower than analyst expectations of 6.6 billion euros.

Source: CNBC