Used Car Only List, UAW Takes a Beating, Gen Alpha Influencers

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We’re coming in hot after an insane ASOTU CON as we dive into Carvana's recovery in 2023, the UAW's setback at a Mercedes plant, and how Gen Alpha kids are shaping their parents' buying decisions.

Show Notes with links:

• Automotive News’ second ever Used Only List reiterates that 2023 was a pivotal year for used-vehicle-only retailers, with CarMax still in front, Carvana recovering its position despite numerous challenges, and some other players falling off the board.
  • CarMax tops the list again, selling 765,572 used vehicles, down 5.2% from the previous year.
  • Carvana sold 312,847 used vehicles in 2023, down 24%, but focused on profitability.
  • Vroom and Shift Technologies faced significant setbacks, with Shift filing for bankruptcy and Vroom winding down operations.
  • DriveTime Automotive saw a 7.2% increase, selling 110,027 used vehicles.
  • Sonic Automotive’s EchoPark increased sales by 15%, selling 73,676 vehicles.
  • Carvana CEO Ernie Garcia said, "We were not super well positioned to handle all of that change, nor were many of our peers."
    
    
    
• The UAW faced a significant setback as 56% of workers at the Mercedes plant in Alabama voted against unionization, marking a blow to the union's efforts to organize more Southern facilities.
  • Over 90% of the factory's 5,000 eligible workers voted, with 56% opposing the union with Mercedes officials actively campaigning against unionization, presenting their plans to address employee concerns
  • Mercedes worker Melissa Howell said, "We have the company’s ear, for the first time in a long time."
  • Another worker, Rick Webster, said, "The No. 1 issue for me is a better work-life balance."
  • The defeat is a major setback for UAW President Shawn Fain, who has revitalized the union with a combative approach.
  • The UAW plans to continue its $40 million organization drive targeting various factories, including Hyundai and Toyota plants.
  • UAW President Shawn Fain said, "While this loss stings, these workers keep their heads held high. We fight the good fight and continue forward."

• Gen Alpha, children aged 8 to 13, may not be the foremost generation on every brand’s radar yet, but it’s time retailers start thinking about them and their interests. Here are the numbers according to a new survey conducted by DKC’s analytics group:
  • 95% of Gen Alpha parents learn about new products or brands from their child.
  • 49% of these parents’ purchasing decisions are influenced by their child’s opinion.
  • About 90% of Gen Alpha children find ways to make money through chores, allowance, and online selling.
  • 91% of parents say their children love to shop, with 92% finding “interesting new products.”
  • Top retailers for Gen Alpha kids include Walmart, Amazon,

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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