Sales Decline Hits Legacy Automakers and Traditional Models

According to the ACEA, new-car registrations across Europe fell 0.3 percent to 1.08 million units in April. Major markets including Germany, France, and the U.K. all reported falling numbers. Soft demand at home comes as European carmakers face tough export conditions, with U.S. tariffs and fierce competition in China compounding their challenges.

Gasoline and diesel vehicles posted the steepest drops, outpacing gains seen in electric and hybrid models. Volkswagen, Volvo, and Mercedes-Benz Group are already cutting costs in response to the tougher market.

EV and Hybrid Growth: Winners and Losers

Fully electric vehicle (BEV) sales surged 28 percent compared to a year earlier. However, they still represent only 17 percent of the market well below earlier forecasts that projected over 30 percent by 2025.

Tesla’s troubles are stark: Its European sales were nearly halved in April to 7,261 units. Market share continues to erode, with analysts pointing to CEO Elon Musk’s polarizing politics and ties to Donald Trump as contributing factors. China’s BYD outpaced Tesla in European EV sales for the first time, according to JATO Dynamics.

“The share of battery-electric vehicles is slowly gaining momentum, but growth remains incremental and uneven across EU countries,” said Sigrid de Vries, ACEA’s director general.

Plug-in hybrid sales jumped 31 percent, with nearly 100,000 new registrations in April. Delayed implementation of stricter emissions rules by both the EU and UK has eased the pressure on carmakers to accelerate full EV adoption, at least temporarily.

Chinese Brands Make Big Gains, Stellantis Loses Ground

While some European brands falter, Chinese manufacturers are gaining traction. MG owner SAIC’s European sales soared 25 percent in April, with registrations for the year up 31 percent to 100,011 units mostly MG models like the ZS, as well as some Maxus vans. BYD also reported significant progress.

Meanwhile, Stellantis continues to lose market share in the region and is still searching for a new CEO.

Outlook: Volatility Persists Amid Changing Tastes

Despite incremental growth in electrified models, the European market remains volatile. Demand for BEVs and plug-in hybrids is rising, but not fast enough to offset declines in traditional combustion models. With tariffs, cost pressures, and global uncertainty still in play, automakers are bracing for more turbulence as consumer preferences evolve and new competitors enter the field.

The post Europe’s Car Sales Dip in April as EVs Rise and Tesla Stumbles first appeared on Car Zura – Latest Automotive News.

According to the House Ways and Means Committee, “The average American family will be able to fully deduct auto loan interest for American-made cars.” The measure passed on May 21 by a narrow 215-214 margin, largely along party lines, with a handful of exceptions on both sides.

Under the proposed law, consumers would be able to deduct interest on qualifying auto loans for the 2025 through 2028 tax years. The deduction would apply to new and used vehicles, including RVs, motorcycles, trailers, and all-terrain vehicles, as long as they are assembled in the U.S. Loans for leased vehicles, commercial and fleet vehicles, salvage-titled cars, and those purchased for parts are excluded.

High-income households would face a gradual reduction in their deductible amount. For single filers earning over $100,000 and joint filers over $200,000, the deduction would be reduced by $200 for every $1,000 or $2,000 in income above those thresholds, respectively.

The bill also eliminates federal tax credits for electric vehicles that were established under the Inflation Reduction Act, making the deduction the primary new tax benefit for vehicle buyers. Elements of the 2017 Tax Cuts and Jobs Act would also become permanent, including individual tax rates and a higher standard deduction.

For taxpayers, the auto loan interest deduction is designed as an “above-the-line” adjustment to gross income. This means the deduction is available to anyone, regardless of whether they itemize deductions or take the standard deduction a shift that could allow millions more Americans to benefit. Previously, such a deduction required itemizing, which only a minority of households do today.

Edmunds estimates that the average new-vehicle loan in April financed over $41,000, with the average borrower paying nearly $2,750 in interest in the first year alone. Depending on the taxpayer’s bracket, the deduction could mean annual tax savings ranging from $200 to over $600 for many families.

The Congressional Budget Office projects that the auto loan interest deduction will cost the government $57.8 billion in lost revenue between 2025 and 2029. To help enforce the new deduction, lenders collecting at least $600 in interest must file paperwork detailing the interest paid and remaining loan balance.

Republican lawmakers, including President Donald Trump, have praised the bill as a way to boost American manufacturing and provide meaningful tax relief. Supporters argue that it will make U.S.-built vehicles more affordable and competitive, especially as other provisions seek to roll back some recent incentives for electric vehicles. The legislation now heads to the Senate for further consideration.

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Economic Gloom Deters Shoppers

A combination of stagnant growth, high borrowing costs, and inflation concerns has dampened consumer confidence across much of Europe. Faced with financial uncertainty, many buyers are delaying or altogether skipping big-ticket purchases especially cars powered by internal combustion engines.

Sharp Declines for Gasoline and Diesel

Sales of gasoline vehicles plummeted 24 percent, while diesel registrations fared even worse, dropping 28 percent compared to February 2023. These declines contributed significantly to the overall market contraction. The retreat reflects both shifting consumer preferences and the impact of increasingly stringent emissions regulations.

EV Momentum Builds Despite Broader Slowdown

While traditional powertrains faltered, electric vehicles (EVs) continued to surge, providing a rare bright spot in a gloomy market. Battery-electric vehicle (BEV) sales rose 26 percent across the region, buoyed by tightening environmental standards and strategic incentives from automakers.

Country-Level Growth Varies

Germany Europe’s largest auto market posted a 31 percent jump in EV registrations. Italy and the U.K. saw even more robust gains of 38 and 42 percent, respectively. Spain also bucked the broader trend, with overall sales climbing thanks in part to a 61 percent increase in EV demand.

Automakers Face Rising Pressure

The upbeat EV numbers are not enough to mask growing tensions for European automakers. Geopolitical uncertainty, slowing demand in China, and fears of U.S. tariffs on Mexican and Canadian imports are reshaping their global strategies.

Tesla Takes a Hit

While most automakers benefitted from EV enthusiasm, Tesla experienced a 40 percent plunge in European registrations. Industry analysts point to increasing backlash against CEO Elon Musk’s political views, including his vocal support for Germany’s far-right Alternative für Deutschland (AfD) party, as a key factor behind the decline.

New Entrants Intensify Competition

Legacy players such as Renault, Volkswagen Group, and Stellantis are aggressively launching more affordable EVs to stay competitive. Renault’s R5 E-Tech priced at €25,000 and the €23,300 Citroën e-C3 from Stellantis are aimed squarely at entry-level buyers. But these models face stiff competition from Chinese manufacturers like BYD, Nio, and Xpeng, who are rapidly expanding their footprint in Europe with similarly priced alternatives.

Policy Shifts May Reshape the Road Ahead

A recent EU decision to ease CO₂ emissions targets for automakers may provide short-term relief to manufacturers under pressure to electrify. The move gives brands like VW, Stellantis, and Renault more time to scale up their electric lineups while still complying with regulatory demands.

However, it remains to be seen whether this regulatory pause will dampen EV growth in the coming months or provide a stronger bridge for automakers racing to meet evolving emissions standards with cost-competitive electrified offerings.

As 2025 approaches, Europe’s auto industry finds itself at a crossroads: navigating economic headwinds while accelerating toward an electric future. Whether consumer confidence rebounds or policy support shifts further will determine if the February slump is a temporary dip or a sign of longer-term volatility.

The post European Car Sales Slide Amid Economic Uncertainty, but EVs Shine first appeared on Car Zura – Latest Automotive News.

Social Media’s Role in the Rise of Fraud

Scammers are no longer operating in isolation. Today, many of them share detailed instructions and “how-to” guides across social media platforms, creating a cottage industry of fraud that is growing rapidly. “They’re spreading standardized tactics, and as their message gains traction, the risk to lenders multiplies,” explained Frank McKenna, chief strategist at Point Predictive and co-author of the report.

Credit Washing Takes Center Stage

One of the fastest-growing forms of auto loan fraud is credit washing a technique where illegitimate credit repair firms help clients file false identity theft reports with credit bureaus or the Federal Trade Commission. This approach is used to erase negative marks from credit histories. In 2023, signs of credit washing appeared in 1.7 percent of loan applications a spike of 162 percent from the previous year.

Default Rates on the Rise

As fraudulent loans make their way into lenders’ portfolios, they significantly increase the risk of default. Borrowers who secure loans through deception are often unable or unwilling to make timely payments. This has contributed to a rising number of delinquencies in the auto lending space a trend that’s worrying financial institutions and investors alike.

Asset-Backed Securities Not Yet Rattled

Despite the increase in fraud, the broader financial market has not yet shown signs of widespread alarm. Roughly 20 percent of auto loans are packaged into asset-backed securities (ABS), and although premiums on the riskiest subprime tranches are elevated, they haven’t surged enough to signal investor panic at least not yet.

Income Misrepresentation Still the Top Offense

While newer scams are on the rise, the most common type of fraud remains income and employment misrepresentation accounting for 42 percent of total auto loan fraud by dollar value in 2023. These falsehoods often originate from both applicants and auto dealers. Point Predictive identifies these cases using analytical models that flag discrepancies between reported income across multiple applications.

High Interest Rates, Inflation Add Pressure

The report points to larger economic pressures including inflation and rising interest rates as additional factors pushing more consumers to commit fraud. “Some borrowers are turning to desperate or unethical tactics just to qualify for financing,” McKenna said.

Synthetic Identities Fuel the Fire

Another growing trend is synthetic identity fraud. Here, fraudsters stitch together components of fictitious personas using stolen Social Security numbers, forged documents, and fabricated employment records to present what appears to be a credible loan application. In many cases, these synthetic identities are combined with credit washing for a more convincing deception.

The Impact of Social Media Schemes

“What’s driving a majority of the fraud risk in the last 12 to 18 months has been the sharing of schemes like credit washing and stolen Social Security numbers on social media,” McKenna emphasized. The accessibility and viral spread of these fraudulent strategies are making it easier for bad actors to slip past traditional fraud detection systems.

Massive Scope of the Problem

Point Predictive’s findings are based on an extensive analysis of more than 256 million auto loan applications representing a combined $4 trillion in loan requests. As scammers grow more sophisticated and organized, lenders are now under mounting pressure to adapt their fraud detection methods and safeguard against this expanding threat.

In a market already strained by economic uncertainty, the rise in auto loan fraud presents a clear and present danger not only to financial institutions but to the integrity of the entire lending ecosystem.

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A Radical Shift in Priorities

When Sanders took over the dealership in 2020 through Toyota’s Dealer Development Program, he brought with him a vision that flew in the face of standard industry practice. Instead of focusing on maximizing revenue from each transaction, Sanders emphasized maximizing long-term relationships  a philosophy rooted in Toyota’s own loyalty metrics.

Retention Over Margins

“We don’t need to maximize every deal we maximize every customer,” Sanders said. That guiding principle affects every decision made at the store, from pricing to staffing to the in-store experience. Sanders compares it to long-term investing sacrificing immediate returns to build enduring value.

A Business Model Built for Loyalty

What makes Damian Lillard Toyota truly unique is the total alignment of its operations with this long-term view. From its website to its employee pay structure, every element is carefully designed to build trust and make customers feel valued.

Website and First Impressions

Instead of overwhelming visitors with pop-ups and chatbot prompts, the dealership’s website presents a clean, user-friendly experience. There’s no pressure just intuitive navigation and a glimpse of the store’s unique culture. As Sanders puts it, “Retention begins the first time they ever hear of you.”

Campus That Feels Like Home

The dealership doesn’t just sell cars it builds community. The campus features an outdoor basketball court, NBA-themed games, and memorabilia from Damian Lillard, who is a partner in the business. Customers are treated to free “Letter O” doughnuts and cold brew coffee, making every visit feel more like an experience than an errand.

Trade-Ins Only

The dealership exclusively sells used vehicles it receives on trade, eschewing auction purchases entirely. This ensures that every pre-owned car comes from a known, local source. It’s a model that limits volume but increases quality and customer satisfaction.

Employees as Partners

Most employees are salaried, work a 40-hour week, and come from outside the auto industry. New hires receive Damian Lillard Adidas sneakers and team-branded jackets. Managers are compensated based on the dealership’s total net performance, not individual departments encouraging cross-departmental cooperation rather than competition.

From Underdog to Outlier

The results speak volumes. In 2019, the store sold just 351 new Toyotas. By 2023, it was delivering more than 1,500 annually far exceeding the national average of 1,400 per store. More impressively, its sales efficiency a measure of productivity and goal attainment skyrocketed to 220 percent.

Redefining Success Metrics

Despite lagging behind industry norms in revenue per repair order and vehicle gross profit, Sanders has no regrets. “The only measurement that matters is the percentage of customers who come back,” he said. By that metric, Damian Lillard Toyota leads the nation.

Shaping a New Culture for Dealers

Toyota’s national leadership has taken notice. The brand recently shifted from traditional customer satisfaction scores to measuring dealer retention, a move that aligns with Sanders’ approach. “We’re really walking the talk,” said Toyota division head Dave Christ. “It’s about aligning incentives and culture with long-term customer care.”

Staying Ahead by Staying Different

While most dealers still chase short-term gains even at the expense of customer trust Sanders remains focused on his north star: loyalty. And though he admits most dealers wouldn’t adopt his model, that doesn’t diminish the results.

“I had this vision of what the dealership could be, and we’re living it now,” Sanders said. “This isn’t just a dealership it’s a movement. And our customers are the reason it works.”

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