New VW Brand to the US, Super Cheap Lease, Vroom Wound Down

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It’s the fourth Friday in March with one still to go as we talk about a new EV brand entering the US market. We also discuss the surprising cheapest lease in America right now, as well as a smooth stop for online retailer Vroom. 

Show Notes with links:

• There’s going to be yet another new EV brand in town as Volkswagen Group's sporty, electric vehicle-focused Cupra brand is set to enter the U.S. by the end of the decade, debuting with two utility vehicles and leveraging VW Group's Mexican assembly plants for production.
  • Cupra plans to introduce an electric Formentor crossover and a larger, unnamed electric crossover SUV to the U.S., using a new distribution model the company didn’t articulate
  • In 2023, Cupra's sales surged by 51%, with Germany as its largest market, yet it eyes the U.S. for a bigger global footprint.
  • Focused on "young, progressive customers," Cupra will target selected states, especially on the East and West coasts and the Sun Belt, using a novel distribution model.
  • Current vehicles include the Tavascan, Born, Formentor, Leon, Leon Sportstourer, and Ateca
  • Cupra CEO Wayne Griffiths, emphasized readiness and market fit for their U.S. venture saying"We know it's always been a matter of being well prepared and doing it right if you go to the U.S.
    
    
    
• Hyundai's Ioniq 6 SE is now America's cheapest lease deal, offering a no-money-down lease for just $239 per month for 12k miles per year
  • Hyundai has rolled out an unadvertised lease offer to dealers for the 2024 Ioniq 6 SE, making it available until April 1, 2024.
  • Comparatively, the Ioniq 6 SE's effective cost of $249 a month undercuts the lease cost of vehicles like the 2024 Toyota Corolla LE in Southern California by over $100 monthly.
  • While the offer applies to a 24-month lease with a 12,000-mile annual limit, it requires only the first month’s payment upfront
  • Cost of ownership may still have a few surprises for lessees as lessees as insurance costs for Ionic 6 might be higher than expected
    
    
    
• It looks like our friends at Vroom are coasting to a stop as they navigate the final lap of their ecommerce operations. Vroom's journey through the used-car retail market is drawing to a close, with the company anticipating a complete wind down by the end of Q1.
  • Vroom has successfully sold off nearly all its used vehicle inventory as part of its strategy to wind down ecommerce operations and exit the used-car retail sector.
  • Following the sell-off, Vroom has cleared its floorplan facility debt with Ally, boasting about $94 million in cash reserves as of February's end.
  • The company is reducing its workforce to align with its scaled-down activities.
  • CEO Tom Shortt expressed pride in the team's professionalism during this transition, focusing on an efficient and cost-effecti

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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