Cars are PILING up across the country. Fire sales imminent.
The auto industry, as we know, is at a crossroads. Many of them pulling back their EV plants, cancelling EVs, figuring out ways to increase production here in the United States. This is one of the most historic times in the automotive industry, I think, here in the United States and probably globally as well with China rising to an automotive superpower with the traditional automakers from Japan kind of shrinking. You especially in China, you have the North American automakers have been they’re a shell of what they used to be at least in terms of production capacity stateside. And in today’s video, we’re going to reflect um what’s happening in the industry right now. If you guys appreciate the updates I give you about cars in the automotive industry, make sure to hit that like button and subscribe. What we have in the next week are a ton of reveals that will be showed the LA Auto Show. I won’t be going, but I will have access to all the information ahead of time. So, when the embargo ends on many manufacturers, I’ll be posting videos on new car reveals. So, make sure you’re subscribed. Stay stay tuned for all of that. What we have on the screen right now is days day supply and it keeps going up. We’re almost at 80 days supply. Sorry, 90 days supply. And you have these outliers. You have well over 120 days. Volkswagen, Audi, Mini, Ram, Jeep, Lincoln. Okay. And then on the opposite end, you still have Honda kind of falling off. They’re like the fall off the cliff in the right direction. They have a lower day supply. You do not want a high day supply, especially the dealers do not, but nor do the manufacturers. They want their cars to be selling at a fast rate. Otherwise, it costs them a lot of money to market these vehicles. It costs the dealerships a lot just to keep those cars on their lots. Okay? So, they want fast turnaround. And then you see Toyota and Lexus operating still in a bubble of their own. Most of their cars are still pre-sold at this point. There are exceptions. All right. Current Rav 4, not the new one that’s coming out. Um, but the current RAV 4 is in good supply. Uh, the Camry is in great supply. Uh, the Corolla is in great supply. The Tacoma great supply. And same with the 4Runner. Those vehicles you should be able to get discounts on. everything else. The crawl cross, the the Grand Highlander, the Sienna um and well, the Tundra, the Tundra’s is still suffering from um that most recent recall that’s not helping them, but it’s like half the Toyotas are in overabundance of supply and then half of them are pre-sold just depending on the model. All right, so regardless, Toyota and Lexus are just crushing it. And we see drop offs. Look at Subaru though. Subaru still, these are all Japanese automakers. Lexus, Toyota, Honda, Subaru. They’re all ahead of the curve. We will talk about Honda and Subaru in today’s video. Uh, Infiniti, interestingly, low day supply, but they only have two models at this point. QX60, QX80. I will be getting the QX80 again today. That’s a whole another story for another another time. It’ll be the third time I have it and the second time I’ve had it in like a month. Anyways, it’s uh confusing, but I’ll try to do something fun with the Incredible QX80 once again. But there’s a couple articles here that I’ve been saving up for a few days, mainly out of the Japanese automakers, Nissan, Mitsubishi, Honda, and Subaru, and how they’re all like scrambling in their own unique ways. We’re going to break that down today. So, I hope you guys have your snacks and drinks because, well, there’s a lot to unpack here and it’s going to be a lot of fun, at least if you’re a nerd about this stuff like I am. So Nissan once again is seeking partnership with Honda to develop products in the US. The US is crucial right now and these unprecedented times with tariffs, import tariffs, um and you know the focus on US production. Nissan CEO Ivan Espinosa, if you missed my interview with him uh like two weeks ago at the Japan Mobility Show, make sure to check that out. It was awesome to sit down with him and ask him some questions. I wish I had more time. And a little background information, my flights got delayed to Japan. So, supposed to land at 5:00 a.m. in the morning. Um, and I landed at like 6:00 p.m. at night. Anyways, what I was planning to do the day I landed in the morning until my planes got delayed is I was going to take a a train down to Yokohama, which I did a different day. Um, and I was not only going to drive cars all day, uh, press cars, but at the end, Mr. Ivan Espinosa, CEO of Nissan, he wanted to drive me in his Nissan Z all the way to the Tokyo Big Site where the Japan Mobility Show was. And I was going to just have a long sit down ride and drive and chitchat with Ivan Espinosa. And it would have been like an hour long of getting all the like I didn’t even get a chance to talk about infinity in the short interview we had at the mobility show because I only had 15 20 minutes it but I would have had two to three times that time as we drove from Yokohama to Tokyo big site if I landed in Japan but that’s a different reality that never happened. He wants to develop products and powertrains in the US with uh Honda. Of course, Ivon Essinosa is willing to try anything to make sure it works with Honda or they can find ways to benefit Nissan by working with Honda. And Honda can get benefits by working with Nissan. Nissan has two vastly underutilized plants. One in Smyrna, Tennessee, one in Canton, Mississippi. They should be building trucks for Honda. rearwheel drive bias 4×4 body-on-frame pickup trucks to replace the Ridgeline and the fact that it’s not happening still is mind-blowing to me. This should I mean just automakers take so long to move and it takes a long time for development as we’re finding out with the new like a Nissan that’s a rebadged and I’ll have more information about this vehicle very soon but Nissan’s rebadging a Mitsubishi Outlander plug-in hybrid. Okay, we’ve known that from the teaser image that Nissan shared this past spring. Um, and Nissan has also said that they’re reusing the plug-in hybrid from the Outlander plug-in hybrid. So, we know it’s coming. Honda and Nissan need to collaborate. What can Honda What can Nissan get from Honda? Well, I’m not quite sure. There’s no way Honda is shelling out their manual transmissions or anything like that. That’s not that doesn’t make any money right now. Okay. So, it’s not like we’re going to see an SER Sentra with a Civic SI powertrain or anything like that. The most logical conclusion here would be well for them to share electric motors for EVs if they still want to build EV. I know Honda does. Um, and maybe Honda can manufacture EVs for Nissan and Nissan can manufacture body and frame SUVs and trucks for Honda. That makes the most sense for me. But also you guys in the comments, Nissan’s e- power is going to be a good enough hybrid for most, I would say, mass market vehicles such as the Rogue and maybe the Sentra or the Kicks, for example. Okay, so they don’t really need Honda’s hybrid technology. And that was a point of contention of why the whole Honda Nissan merger fell apart. I want to get into Honda since I’ve been speaking so much about Honda. Honda’s EV bet is backfiring, which is hurting them and costing them more than tariffs. The company booked a $223 billion loss or one-time charge of $1.5 billion in the six months through September on write-offs and other expenses piled up from its all-in bet on EVs. Most of these e these EVs aren’t even to market yet. That’s the crazy thing. You have to also realize that the the EVs that they had on market like the ZDX and the Prologue, which is still continuing, I’m sure, in very very very reduced capacity for the 26 model year, they were putting so much money on those EVs and incentives uh to sell them or lease them. Okay, the ZDX and the Prologue. So, they lost the money from that. They lost money for from research and development on these EVs. And who knows if it will ever pay off. Time will tell. Tariffs cost Honda $1.1 billion and EVs cost Honda $1.5 billion. So, Gabby have over $2.5 billion loss. And that drove Japan’s number two automaker to an almost $500 million operating loss in its automotive unit. Now, you might see on the screen, might have to get out of the way. There’s a couple I have a couple Hondas. Uh this is the Honda Grom here, right there. They make a lot of money on their minimos throughout the world, but they make more money off of like this thing. You can barely see the fender and the headlight there. That’s actually a press motorcycle. That’s the XR150L. They have so many other low displacement motorcycles that are very popular that make them a ton of money in other markets, scooters and things like that. Okay. So, actually motorcycles has been the big revenue earner for Honda for a long time. and their auto m their automobile business is just like keeping afloat. Actually, it’s no longer it’s starting to to take on water at this point due to tariffs, but more importantly, their maybe ill faded choice to put so much money on EVs. So, their their operating profit plunged 41% for the first half of the fiscal year. Electrification will be delayed. So, we need to significantly revise our future investment plans, including volume and model numbers, man. Well, they already cut out of the equation the three row EV that was supposed to come in 2027, I think it was. All right, so that’s already cut out of the picture. Honda is not going to bring a Zero Series EV here uh that’s made in India. That would be more affordable, but they’re selling it mainly in India and Japan. Um, and the the zero series EVs that we we sorry we’re going to be having here in the United States, who knows how expensive they would be. Um, one’s a flagship. The saloon’s a flagship. So, it’s like, man, even the RSX from Acura, these things are going to be very expensive. And are they going to be able to do anything better than the EV competition? Here’s the thing. Even if they do things better than the EV competition, like you have the IonX series from Hyundai and the Kia derivatives as well, even though that they are better than on average the competition, Hyundai is still losing money on those things. Honda is not going to have any sort of special sauce with these EVs, in my opinion, when they come out to be able to leaprog the competition to make them super desirable. People just want hybrids. People want more hybrids. They want hybrids on their large platform vehicles. That’s what’s costing Honda. Honda could have put all that money, all those billions of dollars into hybrids on their large platform vehicles, but they decided to put on EVs, which is costing them now and will cost them even more in the future. Remember, they were supposed to open up Honda in Canada, a new EV manufacturing hub. Well, that got grenaded essentially when the tariffs got put on put in place. So, that has been indefinitely postponed. their EV hub and manufacturing in Canada. And it doesn’t look like it’s going to I would say it’s probably not going to happen unless something radical changes with the with the the political landscape of things. Anything’s possible. Anything could change. But is that what consumers want? Let’s say they build all these EVs in Canada. Is is that what consumers are going to want? Only time will tell. As of right now, that they don’t most consumers don’t care about battery electrics. Late last year, Honda wanted to sell 2 million EVs globally by 2030. Now, CEO uh MeBE says they estimate around 700,000 by 2030. So, a third of what they expected and it might be less. Time will tell. We need to keep moving on to Subaru. Subaru almost $10 billion electrification plan is well, it’s it’s being potentially scrapped at this point in time. Subaru will cut investments in its electric vehicles and shift more resources to hybrids. Go figure. And reversions revisions to its almost $10 billion electrification plan. President Atsushi Osaki says uh given the increasing demand for hybrids and the reappraisal of internal combustion engines, it is appropriate to delay the timing of full-scale EV mass production investment. You got to keep in mind Subaru and Toyota have so many EVs planned and coming down the hatch. Okay, we have the refresh sold Terara/BZ. We have the BZ Winland/Trailseker. And then you have the new Uncharted, which is the same thing as a CHR. Hopefully they slow their rolls because while those EVs are cool, like I guess the wagons are really cool, I would say, and would be the most interesting in my opinion, this it’s still they’re investing all this money into niche markets, at least what it is in the United States. Subaru is really small as far as I remember in Europe. Toyota’s much bigger. All right. So, Toyota leveraging Subaru to build that um BZ4X Touring or what do they call it over there? We call it the BZ Woodland, the wagon for European sales. Like, it’s all about reducing cost. That’s why Nissan and Honda are are considering still working together because things are just too expensive. And you still have Subaru and Toyota building EVs together. But I think this is going to be this could be a short-term thing. I wouldn’t say short-term exactly. I would say them say they’re going to be slowing down their product cadence at this point. Four sport utility EVs in collaboration with Toyota by the end of 2026. Okay, what are those? Well, you have the the three that I mentioned already, Uncharted, uh Sulttera, and the Trail Seeker. And then you have another three row. Well, it’ be the first of the three rows. So, you have a wagon, a compact crossover, a standard crossover EV, and then you have a three row EV, which is going to be the same thing as the Highlander EV. But I guarantee most of those models are going to completely flop because of no EV tax credit and the cooling demand for EVs right now. And I’m happy that Subaru is focusing on hybrids um going forward, but at the same time, their hybrid technology seems to be well, they’re they’re choosing to charge quite a bit for it. That might hurt them, but ultimately, it’s going to be up to the consumer to buy Subaru hybrids over Korean hybrids or Toyota hybrids or Honda hybrids or eventually Nissan hybrids. It’s ju good that Subaru has hybrids finally and they’re rolling out in their key models, but like I said, they’re not as efficient. They’re better at off-roading, which is a Subaru staple. But are most people offered in the Subarus? No. Most people just want good fuel economy. You get that in the hybrid. You get better response in the hybrid. You get better power in the hybrid. And Subarus are gosh, they’re so underpowered on average. Not talking about the WRX. Um, but man, anyway, Subaru, yeah, I think that the EVs are going to hurt them like the EVs are hurting Honda. It’s not going to hurt Subaru as bad because their investment in EVs is hald due to Toyota’s involvement. Okay, lastly, Mitsubishi. People forget that Mitsubishi is still a brand here in the United States. Should we go? Are they even on this list? Here they are. They have 106 days supply. All right, not great, but not definitely not the worst on the list. Mitsubishi. I was at the Japan Mobility Show. I was hoping that they would show the new Delica. They did not show the new Delica, which is this vehicle right in the middle. We know we’re getting this. They’re giving us a a rebadged Nissan Leaf. Don’t know what this is. And these uh could be like who know. I honestly don’t know. I We want the Montero back. It’s called the Pajarro in other markets. And these are just outlanders here in the front. We need more. But the dealers here, this is an article from Automotive News where they spoke with the dealers and what the dealers are expecting to come. So this is is fascinating here. They are now a crossover only brand until you know the Delica comes and adds a minivan in there, but they want new segments including pickups and passenger vans. Obviously the Delica being the passenger van, but pickups I’m I’m my my ears are perked. In a November 14th letter to dealers, Mitsubishi Motor CEO Mark Chaffen hinted at a strategic shift that would significantly strengthen the brand’s potential in the US. Well, they need some potential right now. There’s zero potential. They don’t have anything that it’s exciting on the market right now. The Outlander plug-in hybrid, their best vehicle is no longer getting the EV tax credit, and that hurts. So, while details remain confidential, this could represent a game-changing moment for Mitsubishi dealers. And sales haven’t been good for Mitsubishi in a long time. But apparently, it’s getting worse. The third their third quarter sales were down 38% which tanked their total year so far. First nine months were down 11%. They were probably positive before or close to positive before this terrible third quarter. Their CEO assured dealers about Mitsubishi’s long-term interest in the region that North America is a priority. I have yet to believe that. Of course, he’s got to give dealers confidence so they just don’t close up shop. When are these products coming? I don’t know. Okay. From the highest levels of leadership down, there’s unwavering commitment to our market and to you, our dealer partner, said their CEO. All right. One dealer said that having a sedan, a midsize sedan, would be a volume driver for the brand’s sales starved retailers. Well, it’s been a long time since we’ve had a midsize sedan such as the Galant. We haven’t had the Lancer in a long time either. Do you think a sedan would move the needle? If it’s interesting, yeah, maybe. I mean, we’re seeing Kia and Hyundai sell large volumes of sedans still. So, I would I would say that there’s potential there, but Subaru just canceled their last sedan, and the leg I guess the WRX is still there, but you know what I mean. The legacy is gone. All right. Sedans are much more likely to be cancelled nowadays than they are to be revived. We’re going to see the Golant come back. Crazy times. We could use an entry-level sedan as many OEMs are leaving the segment now. We went from midsize. So, this is that’s the problem with naming car sizes nowadays. It doesn’t really mean anything. So, an entry-level sedan that perks my ear for a Lancer. It’s a Lancer coming back. It’s probably just a rebadged Sentra or rebadged Ultima. At this point, every Mitsubishi dealer would like a truck. What do you know? How in the world is Mitsubishi not already taking advantage of Nissan’s completely under utilized Canton Mississippi plant where they produce the fantastic Frontier? I don’t know. It doesn’t make sense to me. These brands are so stubborn, so stuck in their ways that they can’t just like quickly shift and say, “Wow, this the our brand, our portfolio, Mitsubishi, hasn’t been good in, dare I say, decades, and they still haven’t found a way to utilize their strongest partnership with Nissan to uh contract manufacture for them. Just doesn’t make any sense.” They they talk about the Triton. Triton’s not coming. I mean, they could re like rebadge the Frontier as the Triton, but the Triton that’s made overseas, no way. All right. Due to the chicken tax and other things. In early 24, Nissan said it was studying a joint development of a nextg pickup with Mitsubishi that would be produced in Mexico. But that was before tariffs. Could it still come? Absolutely. Could it still come out of Mexico? Look, all the Tacomaomas are coming out of Mexico for Toyota. So, this could happen still. We’re still They’re still wasting this opportunity. They’re wasting time. Time is something you don’t get back. And they still can’t find ways to utilize Nissan and Nissan’s underutilized plants to the best of their ability. Mitsubishi says to double the size or almost of its US lineup by the early 2030s by adding as many as four new models. An electric small crossover. It’s no different than the Leaf. Followed by a rugged variant of the Outlander. Okay, that’s not like a new car. Or that’s just that’s just like an off-road trim of the Outlander, like an Outlander Rallyard or something. Further out the pipeline is an electric electrified crossover. Is that fully electric or is it hybrid? I don’t know. And a sporty passenger van. We need the Delica ASAP. The minivan market’s hot. And they still can’t capitalize on it. Honda can’t capitalize on bringing a hybrid Odyssey to the market. And it’s been it’s been way too long. Nissan can’t bring the LGR, the new LGR in which is hybrid only. Just so frustrating. Mitsubishi gave nine US retailers, including Hill, a peak into the future at its assembly plant in Okazaki, Japan on November 7th. Okay, this is exciting. Mitsubishi has committed to North America, Hill said, one of the dealers there. There is a plan. There are vehicles and they’re uniquely different. Thank God they are still going to be hit with a 15% import tariff from Japan. Dealers reviewed a midsize crossover concept and that has off-roer styling. Well, at the Japan Mobility Show, they had the gosh, Elevance concept. It was like a plug-in hybrid quad motor, super luxury. That that can’t come. All right. It costs too much. It would cost 100 grand. And they’re saying that this new vehicle would sit above the Outlander. All right. Well, if it’s a Monto Sport and it has three rows of seats, or if it’s a Montero in general, if it’s sitting above the Outlander, if it’s body on frame, heck yes. I’m all for it. Bring it. We’ve seen this vehicle or I’m assuming this vehicle testing in uh in Florida, actually, not that far from where I live. Okay, so hope hope fingers crossed. All right, this is coming. Sit above the Outlander, three rows of seats, and it’s off-road focused. Off-roader styling. Does styling mean body on frame? I’m going to jump to that conclusion. You can you can believe what you want, but Mitsubishi needs to take advantage of one of their expertisees that they don’t even do here. The one is minivans finally doing that soon. Freaking hope soon with the delica hopefully by the while I still draw a breath. And then also bringing back the Montto and the Pajarro that uh that sadly left our shores. All right, I saw Monto Sport the other day and I just shed a tear of what Mitsubishi used to be and the lack of of living up to their potential. Mitsubishi previous said it was considering co-developing electrified crossover with Nissan. The vehicle would be built at a Nissan factory in the US and go on sale in 2028. Honestly, they could just rebadge the Rogue E- Power or we do know that the the Xtera is coming. Um, and the Exttera more than likely will have a V6 and a V6 hybrid, maybe even a plug-in hybrid. And that’s supposed to go on sale in 2028. So, it would make sense for Nissan and Mitsubish Bishi to have two different flavors of the Xtera. and Hill the dealer was happy to say, “See that Nissan’s or sorry, Mitsubishi is not going down the full EV path.” Well, that’s suicide right now. Um, and they’re going to offer ice and hybrids. Great. Now, just give us product with decent ice and hybrid options. That is compelling. Cool. Bring back the Lancer. It’s not going to move the needle. It’s not a sedan market, but people, it it would generate buzz. I would say that the Lancer comes back, it will generate buzz. I’m not saying an Evo. We need the We need the Delica and we need the Montero and the Montero Sport ASAP. We’re still a long ways from getting them seemingly. Um, in the meanwhile, they’re going to launch their version of the Leaf. So, it is what it is. Mitsubishi’s just suffering until they get these vehicles out just like Honda’s suffering. Well, investing in EVs and not having their large platform hybrids out anytime soon. Maybe 2027. All right. Nissan, they’re just they’ve already hit rock bottom. Um, and they’re just trying to find ways to claw back and be strong a strong company again. And Subaru, Subaru’s fine. You know, their sales haven’t been great the last few months, but they are they’re in Toyota. They’re under Toyota’s wing, lack of a better word. So, they’re going to be fine. The day supply, well, these are going to keep creeping up until I see something different. We’re probably going to see over 90day supply very soon. You might have the Christmas surge when you know the very wealthy older people who are still buying cars just go and buy a car for Christmas for a Christmas present present. Like you have all like the holiday driving or sorry the holiday sales events like Lexus December to remember for example those are are those sell a good amount of cars. But it’s when you get to January and February is where the these days supplies should just shoot up. 90 95 maybe even 100 day supply on average is not out of the equation. Toyota and Lexus day supply they’re holding strong here. But for how long? For how long? The new RAV 4 will probably keep Toyota down below 40 days supply in the next for the next year. All right, but Lexus um the GX is keeping their day supply low. The TX is keeping their day supply low. It’ll be interesting uh to see how well they can keep up with Toyota’s low day supply. They’re winning now, but I don’t know what’s coming down the hatch. The ES is not going to move the needle for Lexus. In fact, it could do the the complete opposite as it’s battery electric. Sometimes hybrid or like there is a hybrid variant of the ES, but it might not launch till later is what I’ve heard. Huh. So, Honda here hanging on, but this will keep going up in my opinion because on average, everyone should be going up. All right. You will still have more desirable brands underneath this um green bar here. BMW, Porsche, Infiniti is not desirable, but they only have two cars, so they’re like this complete outlier. Okay, Chevy, uh, that’s surprising. Their day supply is this low. Good for them. Subaru, again, relative to Toyota. But where’s Mazda? Mazda’s all the way up here. Mazda’s day supply is enormous. They are by far the worst. I wouldn’t say by far the worst cuz Nissan’s not very far from them. But Nissan and Mazda, their day supply is tremendous. Um, but hey, it could be worse. They could be all these other brands on the far right end of the column where it just accelerates. 155day supply for Lincoln. Maybe Lincoln’s uh choice to have China build the Nautilus is not working out for them. Jeep. Jeep is still a strong brand name, but maybe Jeep people are running out of money or their Wranglers are just running fine and so they don’t need a new Jeep. But Jeep is more than just Wranglers. They have so many crossovers. I don’t know why Jeep is so high day supply. Ram, same thing. Really high supply. I just drove the Ram Hemi. It’s pretty good. Don’t know why their day supply is so high either, but their cars aren’t so many anymore. They’re not as cutesy as they used to be. Audi, I can’t tell you. I mean, I would say most of their car designs are pretty ugly. Their interiors are pretty trash. Volkswagen offers really good bang for your buck, but they don’t have any hybrids, so I think that’s hurting them. Chrysler, whatever. Ford, uh, I just reviewed the Expedition, is doing okay, it seems like, but they probably have a ton of trucks sitting around. The Ford’s cancelling the F-150 Lightning from what it looks like. Mazda can’t sell enough of the CX-5. CX-5 is in high volume right now. Maybe people are waiting for the redesign. I would say don’t wait for the redesign. The current CX-5 is great. Nissan, when I go to Nissan, the drive by the Nissan dealership, lots of Moranos, lots of Rogues sitting around. Mitsubishi, God bless them, okay? They have very few compelling products. It’s Mitsubishi is like, “How cheap can you get a new car?” All right, and that’s maybe a lot of these brands. But anyways, I got to shut it down. I could talk forever, but it’s it’s hard for me without having a conversation to just chat back and forth. All right, but I got to shut it down. Stay tuned for all the big reveals coming in the coming days, and I will check you in the comments as always. Have a great day in peace.
#cars #dealership #toyota #honda #ram #jeep #mazda #nissan #subaru #chevy
Dealerships are running out of PEOPLE to sell to. Inventory is exploding across the country.
Meanwhile automakers are losing billions on EV investments.
sources:
https://www.coxautoinc.com/insights-hub/oct-2025-new-vehicle-inventory/
https://asia.nikkei.com/editor-s-picks/interview/nissan-seeks-partnership-with-honda-to-develop-products-in-us-ceo-says
https://www.autonews.com/honda/an-honda-ev-strategy-loss-tariff-2q-earnings-electric-vehicle-1107/
https://asia.nikkei.com/business/automobiles/electric-vehicles/subaru-retools-9.7bn-electrification-plan-as-ev-demand-slows
https://www.autonews.com/mitsubishi/an-mitsubishi-reveals-product-roadmap-1114/
00:00 – The car market is descending
03:36 – Nissan and Honda
07:32 – Honda BLEEDING money
12:17 – Subaru’s reset
15:54 – Hope for Mitsubishi
25:17 – Cars are piling up
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