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EV registrations dropped 41 percent in January, according to new data from S&P Global Mobility. The auto industry’s EV retreat bill approaches $70 billion. Plus, Blake Helfman of Helfman River Oaks CDJR in Houston talks about Stellantis’ product refresh and how artificial intelligence is improving dealership operations.
Welcome to Daily Drive for Friday, March 13th, 2026, I'm Kellan Walker in Las Vegas,
today on the show, EV registrations tumble 41% in January, the auto industry's EV Retreat
Bill hits $70 billion, and the Trump administration sues California over EV mandates.
Plus, our own Dan Schein visits Healthman River Oaks CDJR in Houston, where sales manager
Blake Healthman is excited about Stellantis' product refresh.
Gee, because you think as a premier leader in the SUV market space, and to not have a car
in that class has been tough over the last few years, so now we're back in that mid $30,000
price point range, where I think some of our competitors have been very successful.
Let's run through all the news you need to know to keep up the auto industry.
EV registrations dropped 41% in January compared to a year earlier,
that's according to S&P Global Mobility. Electric vehicles now make up just over 5% of the market,
down from more than 8% last January. Gas-powered cars picked up more than two points of
market share. Hybrids gained about a point. Tom Libby at S&P Global Mobility
calls it a reset after Congress repealed the federal EV tax credit last year.
He says it's going to be a slow climb back. We'll have more on this story in a minute with our
own Lauren Seiliff. It looks like Honda will pull the plug on the prologue EV. It's only battery
electric vehicle in the US when production ends in December. According to industry forecaster
auto forecast solutions, the auto maker won't build a second generation of the GM built crossover.
The move caps a dramatic retreat. Prologue sales crashed 74% this year after the Trump administration
eliminated the federal tax credit. Honda slashed production in half and now expects to sell
just 17,900 units. Honda's also cancelling three upcoming US-built EVs. The company blamed
weak demand, tariffs, and profitability challenges pivoting instead to hybrids.
The bill for the auto industry's EV retreat is approaching $70 billion. Honda is adding nearly
$16 billion to that tally with this week's cancellations. Add to that, write down from GM,
Ford, and Stellantis, and the sum is pretty staggering. Just two months ago, the industry's
restructuring cost stood at $50 billion. That included $26 billion forced Stellantis and $21 billion
for Ford alone. What's notable here? These aren't just canceled vehicle programs.
The loss of span EV factory capacity, battery manufacturing, and years of development work
that's now being written off. Analysts say auto makers will keep investing in EVs and batteries
partly to reduced costs, but mostly hedging against regulatory whiplash under a future administration.
In meanwhile, the Trump administration is suing California over the state's electric vehicle
mandates, saying they violate federal law. Here's the thing. Congress already killed California's
plan to ban gas cars by 2035, but the state still has earlier rules on the books that require
auto makers to sell more and more EVs each year. The Trump administration wants those gone too.
Arguing auto makers should only have to meet one set of federal standards, not California's
stricter requirements. And those are today's headlines. You could read more about all these stories
at autonews.com. Joining me now to talk more about the story about cratering EV registrations in
January is automotive news reporter Lauren Seiliff. Lonnie, welcome back to daily drive, sir.
Hey, man, it's great to be here as always. So Lonnie, this data is from January before the conflict
in Iran and other developments that could affect the EV market. What should we make of this big drop
and are things likely to turn around? Okay, so you know, January is a continuation of what happened
last year. You know, the tax credit that goes back to 2009 was repealed in July. Then it went away
in September 30th. And then we've seen every single month. They've gone down and down and down.
Now January, they fell 41%. That's a big number. And basically what's happening is kind of a
structural thing. Things are big things are changing in the auto industry. And that is that you
lose that credit, which was driving sales. And then the administration also got rid of penalties for
fuel economy rules. So the carrot of buying EVs is gone. And the stick forcing automakers to buy
them is also gone. So, you know, with gas prices going up and everything, I can see like a
California where EVs are very mainstream. It's just another choice, right? And it could be,
oh yeah, that looks interesting. But I think most of the country is going to go to hybrid. That's
what our number show is that that's kind of, you know, gaining. It's easier for people to say,
oh, gas is going up. But my next car, maybe I'll get a hybrid and I'll get, you know, 30 or 40%
better gas mileage. And I think it's going to be a bigger leap going to an EV because of just what
I said, the incentives by an EV both on the consumer side and on the automaker side that has to
sell them and promote them and give you money to drive them off the lot is gone. What are the big
takeaways from specific brands, EV sales? Yeah, it's very interesting because now we're seeing
a pattern and January is a very interesting month in that EV makers like Tesla, right? That's the
big EV maker. Everybody associates EVs with them. They were down 26% versus 41% for all
EVs. And then the model Y was only down about 5%. So it shows you that there's still a very core EV
market, right? And they like Tesla's Tesla's market share has gone up 10 points, right? Because
people are gravitating to them. And some of these other brands are kind of giving up, right? We just
saw Honda cancel three EVs. But even the one EV that they have is cratering. And so you really see
kind of the strong EV players, you know, Tesla, Rivian, Lucid kind of fighting it out there in
the market. Cadillac's in there too because they have a bunch of models and they have some commitment.
And some of the other ones that are less committed are just kind of giving up and their numbers are
down like 80%. Wow. Good stuff, Ladi. Thank you so much for joining, Mr. Thank you very much.
Coming up, Blake Healthman sales manager at Healthman River Oaks CDJR in Houston talks about the
excitement around Stellantis's product refresh and how the dealership is using artificial intelligence
to improve operations. That's next on Daily Drive. Are you a dealer creating a workplace
culture your employees are proud to be part of? Applications are now open for the 2026 automotive
news best dealerships to work for program. This isn't just an award. It's a chance to get real
insight into what's working at your dealership and where you can improve. And we've expanded the
categories this year, recognizing everything from technician experience and leadership development
to AI enablement and employee retention. The registration deadline is April 17th. Find out more
and apply at autonews.com. Welcome back to Daily Drive. I'm Kellen Walker. Stellantis dealers
are seeing a wave of new product after years of limited refreshes from the V8 powered Ram Trucks
to the two and four door Dodge Charger, the all new Jeep Cherokee and a refreshed Pacifica.
The brand is betting on new metal to gain market share. Automotive news senior retail editor Dan
Shine recently visited Healthman River Oaks CDJR in Houston where sales manager Blake Healthman
talked about the product pipeline, how the dealership is using AI to mine service customer data
and his thoughts on Chinese automakers potentially entering the US market. Blake, thanks so much for
joining me on Daily Drive. Awesome. I'm happy to be here. So thanks for having us here at your
dealership. It's a great place. I like great busy service bays going on there. I want to talk,
we just kind of before we I push record here, we talked a little bit about this new Texas DMV
legislation about registration requirements down state of Texas. What are your thoughts on that
and how it might impact your sales and business here? Yeah, no, I mean definitely could impact us.
We're in the early stages of this taking place. We're hopeful that there is a common ground
that's coming together. Every day, our TADA is releasing emails and guidance on the situation.
We're hoping that they'll come up with more solutions so that more people are able to
purchase a vehicle, re-register vehicle because you know, it could present a hurdle down the road
for selling and re-register vehicles. So, 2026, at least for new vehicle sales are,
looks down a little bit than in the past. What's your outlook on business for 2026? What
are you kind of bracing for? Well, we're super excited. You know, at the Stellanza
Sprang, we got a lot of new changes coming to the front. We just came back from NADA a few weeks
back and the manufacturer released quite a few new vehicles and is going to release a
quite a few new name plates to us, which is super exciting. Haven't had a lot of, I guess,
refresh product over the last couple of years, especially we were headed down a path of electrification.
Now, we've pivoted back and we've come out with the V8 trucks. We're coming out with performance
trucks. Dodge is back with a 2 and 4-door charger, which is super excited. We now have a refresh
pacifica coming that we're now able to order. Ram announced yesterday the pro cities coming back.
And then on the Jeep brand, we have an all-new grand Cherokee that hit an all-new grand wagon
year that hit. We're going to be seeing a refresh gladiator and Wrangler over the next two years,
which is exciting. The Jeep Cherokee is back. So, super, super excited about that segment.
Jeep, as you think, is a premier leader in the SUV market space and to not have a car in that class
has been tough over the last few years. So, now we're back in that mid $30,000 price point range,
where I think some of our competitors have been very successful. The compass is redesigned
in back. It's got a lot of new, really good things going our way for 2026 that we're super excited
about. And new leadership as well. New leadership as well, yes. Antonio Flos has done a great job
at the helm. It's just in a short time, but made a ton of changes a lot on the product side
that we hope are going to drive incremental growth over the next year. And we've already seen
quite a bit of it. And you know, it got a lot of incentives that just hit even two over the last
few weeks. So, the brand is definitely committed to gaining market share and they're doing so through
product and current incentives. For consumers out there, I think, you know, affordability has
been kind of the buzz word that we hear a lot about. We heard a lot about it at NEDA.
How do you combat that for those folks who have been on the sidelines,
I think sticker price may be a little bit too high. The incentives have not been there
much for in 2025. Interest rates have moved, but not greatly, but a little bit. How do you
get folks in the door here and convince them that they need to buy new? Absolutely, yes. So,
you know, we're fortunate, you know, in our brands, at least recently, you know, the prices have come
down. We've had a lot of MSRP adjustments over the last six months to a year, which has really
helped on the Jeep side. You know, on the Ram side in particular, just yesterday, they announced
84 months at 4.9% and no payments for 90 days. So, I mean, two really significant incentives that
help the consumer out from an interest rate perspective and then also a delayed payment perspective
as well. And in addition to that, they're also offering rebates on top of that. So, I think the
factory recognizes that they need to step in and help as well and they've done so, which has been
super exciting. So, we've got Ram Truck Month going on right now. So, all these three, you know,
combination of incentives should really help to drive truck sales and affordability.
Okay. One other thing we heard a lot when you were at NADA as well, AI, artificial intelligence
and how it might fit into either ship operations. For you guys, how if you kind of approach this,
are you deep into it? Are you not so much? What is your kind of thinking on artificial intelligence
and how it might help you in every day business here? Yeah, it's huge. You know, Mike actually
our service director and I talk about it every day and then along with the sales guys, we're
sitting on so much data as a dealership and how to take that data and convert that is the big
is the big challenge. So, whether it be something like software updates and recalls in the service
department and how to reach out to those customers in a timely fashion in, you know, at a very high
speed, we're working on that. Try to be more proactive on that front in the service departments. We're
working with a lot of AI companies to try to get customers in quicker, follow up with them better.
And then communication as well, we have a texting platform that we implemented in the service
department. One of our biggest complaints was a way to communicate to and from our customers.
And so now that we've opened up a text line of communication that our BDC manages, it's been
really smooth in the communication front there. Artificial intelligence, we do a lot of equity
mining in the sales department, finding people that are using our service department and are in
good position in their vehicle and then trying to reach out to those customers from a sales perspective.
That's been huge in the artificial intelligence space. And then, you know, the little things,
like, you know, we try to reach out to everybody via text messages to offer them a trade
in value on their car that come into service. So that's been, we'll work with a few companies
on that route. Yeah, I mean, it's hitting us daily with new changes. So for us, it's great.
You know, it's new opportunities for us that we can take advantage of in the dealership space
and it's an opportunity for us to become more efficient as well.
Regardless of staffing and retention, turnover, it can be an issue at dealerships. How are you
as far as staffing goes and retention? And if you're doing well, how are you keeping folks here?
You know, I think the big thing is our ownership is private. So my grandpa started our dealership
group in the early 50s. And my dad is now the president of our auto group and we have family members
at run each location and have been there for a long time. And I think when you have leadership
that's been in the same place, you're able to keep a lot of the same people. And I think that
truly is what drives retention inside a dealership. We have a lot of turnover. It's difficult to
keep the same people. So I think, you know, I think strong leadership at the top. And I think
consistent leadership as well when you don't have a lot of turnover that helps. And finally,
I want to maybe talk a little bit about Chinese vehicles. They're going to be in Canada. They're
going to be in Mexico. They're going to, you know, have the US just rounded a little bit.
What is your view on China vehicles coming into this market and whether you see that as a
potential threat or something that maybe you would want to, if an opportunity came up that you
could sell Chinese vehicles? Yeah, you know, I mean, we're in the business, obviously,
of selling cars. And, you know, our brands have shifted ownership over time, whether it be,
you know, the United States owning us or the Italians owning us or the French owning us.
And so we've kind of moved, you know, with respect to the Chinese coming into the market,
you know, obviously that's a political decision and not in our wheelhouse necessarily. But,
you know, I think, you know, hopefully our manufacturers are watching what they're doing,
their technology, their quality and trying to compete with them, you know, at least for right now.
You know, it seems like everything I see, they make really good-looking vehicles. But, you know,
is that what our market wants? You know, I don't know. You know, I think that, you know,
the majority of our customers want affordable vehicles. So I think that's the biggest thing.
And is the is affordability through electrical vehicles or is it through gas and hybrid?
You know, right now it seems to be that hybrid and gas vehicles are a lot more affordable
than electric vehicle, especially that the government's not subsidizing a lot of that price
and payment. You know, I hope that, you know, the manufacturers that we have franchises with
will continue to watch what they're doing. And not just them. I mean, there's a lot of other,
you know, I know a lot's to be said about the Chinese, but there's a lot of other automakers
in countries that are very competitive in that space. And, you know, our brands are competing with
them right now, head on in a lot of markets and foreign countries. You know, that's the benefit
of being with Stellantis is that right now they're competing against these Chinese, you know,
whether it's in Europe or in Asia or in South or Central America. I mean, we're already going head
to head with these guys and Ford as well. We have a Ford store also. So I know that, you know,
they're watching them closely. Blake, we really appreciate your time.
Yes, of course. Absolutely. Thank you. Thank you so much.
That's daily drive for today. I'm Kellyn Walker. Thanks to automotive news executive
producer Jake Near, as well as our own Lauren Seiliff and Lindsey Van Hully for their reporting
for today's podcast. You can get the latest news on EV registrations. Stellantis has product
refresh and everything happening in the auto industry at autonews.com. Come back over the weekend
for our weekend drive edition of the show. Our own Michael Martinez and Lindsey Van Hully
talk about the biggest stories from the past week, including the staggering $70 billion bill
for the industry's EV reset. I think it's a sign really of just this broader
reset that's ongoing and everyone's sort of taking this view of how much space and how much
capacity do we really need right now? We'd love to hear from you. Let us know what you think of
the show and the topics we cover today. Send us an email at dailydriveatautonews.com
or leave us a voicemail at 313-444-2774. And if you enjoyed the podcast, remember to like,
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Automotive News Daily Drive

Automotive News Daily Drive

Automotive News Daily Drive
