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The ASOTU team is saddled up and ready to ride as we talk about the retail scorecard from Christmas. We also get into auto loan rates, a chip surplus, and all the buzz around this week’s CES in Vegas.

• According to Mastercard data, Retail sales increased by 7.6% during the holiday season from November 1 to Christmas Eve
  • Clothing sales rose by 4.4%, while in-store sales increased by 6.8% and online sales increased by 10.6%.
  • Electronic and jewelry sales fell by 5.3% and 5.4%, respectively. The 7.6% increase in sales marked a slower pace than the 8.5% increase in 2021, but was higher than MasterCard's expected 7.1% rate.
  • Restaurant spending increased by 15.1% over the same time period in 2021

  • "This holiday retail season looked different than years past," Steve Sadove, a senior adviser at Mastercard and former CEO of Saks Incorporated, said in a statement. "Retailers discounted heavily but consumers diversified their holiday spending to accommodate rising prices and an appetite for experiences and festive gatherings post-pandemic."
    
    

• Credit unions are crushing conventional auto lenders by almost 2.5% points on average for used cars and over 1.5% points on new according to Q3 data (8.36 to 5.94% /used  and 4.43%, versus banks’ 6.06% / new)

  • Decrease in mortgage lending have made them more aggressive on auto
  • Now occupy 28% of auto lending market up from 20% last year (Experian)
  • Tend to hold the notes rather than sell as bonds which could lead to trouble if defaults see an increase next year

• Do you see all those stocked electronics? One reason is that chip inventories are swelling as  Semiconductor companies are reducing production plans due to weak demand for electronic gadgets.

  • Highest levels in over a decade
  • “Well above our target level,” said Sanjay Mehrotra, said chief executive of memory maker Micron Technology Inc., on Thursday  as they missed Wall Street earnings projections, gave a subdued outlook and said it would cut about 10% of its workforce. 
  • Chipmakers expect the situation to normalize around the middle of next year depending on the next upturn
    
    
    
• CES in Las Vegas starts on Thursday and will be heavily focused on mobility which includes lots of EV’s
  • Organizers are expecting over 100k attendees
  • Will feature approximately 275 mobility-related companies are expected to attend CES as of December 15, and they have booked around 400,000 square feet of event space, which is 20% of the total space available at the show
  • BMW and Stellantis will unveil EV concepts and that Bosch will bring e-bikes, while aviation companies Ryse Aero Technologies and Aska will show electric vertical take

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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