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As stores across the country are playing ‘The Final Countdown’ as April wraps up, we’re talking about Asbury’s listing strategy for 10 of their stores. We’re also talking about Tesla’s next round of layoffs, as well as one Tiktoker who is less than excited about their interest rate.
Show Notes with links:
- Asbury Automotive Group, ranked fifth among U.S. dealership groups, is eyeing the sale of 10 dealerships after its recent divestiture of the Koons Lexus of Wilmington. Here's the breakdown
- Asbury listed $242.7 million in assets, including the dealerships, real estate, and various franchise-related assets.
- The group sold Koons Lexus for $102 million, aligning with Lexus' franchise limit of eight stores per dealer.
- CEO David Hult highlighted a focus on selective acquisitions and maintaining shareholder value, noting a leverage ratio of 2.6 times earnings. The group currently has 157 stores
- Asbury has repurchased 240,000 shares for $50 million this quarter, with plans to buy back more.
- Hult said: "In the current market, there's certainly a lot of stores on the market from an M&A standpoint. But I think we really want to be extremely selective," said Hult during an earnings call.
- Tesla continues its aggressive cost-cutting strategy, announcing further layoffs that affect senior executives and the entire Supercharger team. This move comes amid broader tech industry layoffs and follows a significant quarterly earnings shortfall.
- Tesla has laid off more than 10% of its workforce, including high-profile executives and the team responsible for Supercharging infrastructure.
- The elimination of the entire Supercharger team, led by Rebecca Tinucci, signals a potential pivot in Tesla's approach to EV charging infrastructure despite the adoption of Tesla's NACS plug by other manufacturers.
- Alongside the layoffs, Tesla sees departures of key personnel like Drew Baglino, VP of Powertrain and Energy Engineering, underlining internal challenges and dissatisfaction.
- These layoffs coincide with Tesla's request for a substantial shareholder payout, contrasting sharply with the company's financial and operational cutbacks.
- Blaisey Arnold, a TikTok personality, recently faced the harsh reality of auto loans when she decided to part ways with her Chevy Tahoe due to overwhelming interest payments totaling $50,000.
- Arnold's loan for the $84,000 Tahoe came with a 10.2% APR from GM Financial, leading to massive interest accrual over the loan's term.
- With no down payment and negative equity from a traded vehicle, Arnold’s monthly payments of $1,400 barely made a dent in the principal amount.
- Arnold criticized the dealership for allegedly taking advantage of her lack of financial savvy, a claim that underscores the broader issue of consumer education on auto loans.
Quote from Arnold: "I did not go with my husband
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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