The Auto Market Brief – Ep. #2
In this Episode
Jobs market momentum is slowing and automakers are under pressure. What does it all mean for sales, credit, and pricing decisions across the automotive market?
From labor market weakness and rising debt levels to disciplined incentives and inventory strain, this episode breaks down the forces reshaping demand, profitability, and strategy as we get further into the first quarter of the year.
Key Takeaways
Labor, productivity, and economic risk: Job growth revisions reveal a cooling labor market, while productivity gains and wage growth complicate the outlook for consumer demand, GDP, and recession risk. Erin and Jeremy explore what the current “low hire, low fire” environment means for automotive retailing and long-term sales momentum.
Credit availability and consumer pressure: Auto loan rates, APRs, and credit availability remain relatively stable, but rising subprime share, negative equity, and growing delinquencies (especially in student loans) signal increasing pressure on consumers and lenders heading into tax refund season.
Automaker performance, pricing, and inventory: OEMs navigate tariff-driven cost increases, supply chain disruptions, and disciplined incentive strategies as MSRP, invoice, and average transaction prices compress. Inventory levels, days’ supply, and production decisions are setting the stage for an intense market-share battle across key segments.
00:00 Intro
00:53 January Sales Trends and Inventory Updates
03:58 Credit Availability and Labor Market Dynamics
07:50 Job Growth and Economic Indicators
11:00 Automaker Challenges and Tariff Impacts
14:53 Market Share Battles and Dealer Support
19:07 EV and Autonomous Vehicle Updates
21:30 Outro
