The Auto Market Brief – Ep. #12
In this Episode
Consumers are still spending, unemployment remains low, and auto sales continue to outperform expectations. But a closer look at the data reveals a more complicated story.
In this episode of The Auto Market Brief, Erin Keating and Jeremy Robb unpack the latest economic indicators, from consumer spending and labor participation to trade negotiations and EV lease economics, to better understand what’s really happening beneath the surface.
Key Takeaways
Why strong consumer spending may not tell the whole story: Consumer spending continues to rise, but much of the growth is being driven by necessities while household expenses are increasing faster than income, creating ongoing affordability pressure.
What labor market data is really signaling: Employment remains strong, but declining labor force participation raises important questions about the true strength of the workforce and where future growth will come from.
How EV lease residuals are reshaping the market: Negative equity positions are becoming a growing concern for leased EVs, prompting automakers to explore new strategies to retain customers and keep vehicles out of wholesale channels.
The discussion also covers USMCA renewal uncertainty, June sales performance, autonomous vehicle regulation, and the competitive pressures confronting global automakers.
00:00 Intro
01:55 GDP Growth, Consumer Spending, and the Income Gap
05:46 Jobs Data and Labor Force Participation
10:52 USMCA Non-Renewal and Trade Uncertainty
14:59 The EV Lease Residual Gap
19:29 June Sales Winners and Losers
21:27 Polestar’s U.S. Sales Challenge
22:30 Autonomous Vehicle Rules Are Changing
23:28 Volkswagen’s Restructuring Plan
26:02 Outro
