Big ASOTU Announcement, Used Cars Rise, CA Crowns Tesla, D2C reversal

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It’s a great Thursday for Retail Auto as we make a milestone announcement (we think) for team-ASOTU. We also talk used car pricing, Tesla in California, and a notable shift happening in retail footwear. 

• Michael Cirillo joining as CoS
  
  
• Used car prices have seen their second straight month of increases as the Manheim Used Car Index bumped up another 2.5% from December to January indicating a higher than expected demand
  • Still down 11% YoY
  • This is an atypical change for January as values historically remain fairly level across the two months
  • There are even some indicators that hint at Spring. Maybe the groundhog was wrong?
• Tesla’s Models 3 and Y are named the best selling vehicles in California unseating Toyota’s Rav 4 and Camry from their throne.
  • 1 in 5 cars in CA are electric and the state accounts for 40% of all electric vehicles sold in the US
  • Tesla’s market share in CA is 11.2% as opposed 3.5% in the rest of the country
  • Toyota still topped CA market share at 17.3%
    
    
• Major footwear brands are showing signs of reversing course and turning back to wholesale after sharp moves in the direct to consumer space
  • Namely, Nike is loosening allocation to wholesale channels such as Foot Locker after several years of limiting volume through wholesale channels
  • They recently invited wholesalers to visit their campus for the first time in three years
  • Design partnerships with wholesale brands for exclusive offerings of its popular AF1 shoes are also on the rise
  • Since the shift began, startup shoe brands such as “On” and “Allbirds” have been seeing great success as they embrace traditional wholesale channels according to estimates by the Wall Street Journal

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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