April 11, 2026 | Weekend Drive: Is a U.S. sedan comeback on the horizon?
About this episode
Kia’s planned entry into the midsize pickup market sparks debate on whether it can ever pass the “Calvin test” of brand loyalty, with the panel noting the segment is already dominated by Tacoma and Colorado. They then dig into inventory, where new-vehicle stock is hovering near 3 million units and day supply is trending toward ~60 days—suggesting discipline, though volatility from supply-chain and pricing shocks remains. The crew also examines Buick’s sedan return and what it could mean for a broader U.S. sedan comeback, tying it to shifting economics and cafe rules. Finally, they argue over calls to repeal the federal gas tax.
Automotive News reporters Larry P. Vellequette and Michael Martinez join Kellen Walker to discuss whether Buick’s planned new sedan could mean a broader comeback for the segment in the U.S. Plus, Kia enters the pickup market targeting 90,000 annual sales, new-vehicle inventories drop sharply to 2.98 million, and the Alliance for Automotive Innovation calls for a federal gas tax repeal.
employee retention
"to AI enablement and employee retention. The registration deadline is April 17th, find out more and apply at autonews.com."
Employee retention is the ability to keep employees from leaving. Dealerships care because turnover disrupts training and can hurt service quality and sales consistency.
V-Auto by Cox Automotive
"AI powered vehicle descriptions that save time and drive engagement. Experience more with V-Auto by Cox Automotive."
V-Auto is a software tool dealerships use to manage cars and online listings. Cox Automotive is the company behind it.
V-Auto is a Cox Automotive platform used by dealerships for inventory and digital retailing workflows. In this context, it’s being positioned as a tool that supports pricing, merchandising, and listing content.
Buick
"[73.0s] Buick planning a new sedan [74.9s] and whether that could signal a broader comeback [76.9s] for sedans in the US market."
Buick is a car brand from General Motors. They’re talking about making a new sedan, which connects to whether people are starting to want sedans again.
Buick is a U.S. brand within General Motors, known for comfort-focused vehicles. Here, the mention of Buick planning a new sedan ties into the broader question of whether sedans are returning to popularity.
UAW
"And Michael Martinez who covers Ford [104.8s] in the UAW for Automotive News."
The UAW is a union for many auto workers in the U.S. It often plays a big role in negotiations about pay, benefits, and working conditions.
The UAW (United Auto Workers) is a major U.S. labor union representing workers in the auto industry. Mentioning that Michael Martinez covers Ford “in the UAW” signals labor and contract negotiations as part of the news context.
Kia
"So Larry, Kia announced this week [115.2s] it's getting into the pickup trucks."
Kia is a car company that sells vehicles in the U.S. They’re talking about adding pickup trucks, which is a new direction for them.
Kia is a major South Korean automaker that’s expanding its lineup in the U.S. market. In this segment, the focus is on Kia moving into pickup trucks, which is a big strategic shift for the brand.
Calvin test
"Remind us, what's the Calvin test? ... usually relieving himself on a logo of a competing brand. ... This is a way to explain that they are just not a player right now."
They’re using a funny “test” to see how popular a brand really is. If you can’t find the brand’s stuff where you’d expect it, it suggests the brand isn’t a big player yet.
The “Calvin test” is a humorous way to gauge brand presence and cultural reach. In this case, it’s about whether you can find evidence of a brand (like a sticker) in the real world, especially in a segment where you’d expect to see it.
units a year
"The way we cut it, only two of them have over 100,000 units a year. That's the Chevy Colorado and the Toyota Tacoma."
This is just how many of a certain truck are sold in a year. They’re using it to show which models are truly selling at scale.
“Units a year” is a sales volume metric—how many vehicles a model sells annually. It’s used to separate the top-performing trucks from the rest of the crowded segment.
Toyota Tacoma
"That's the Chevy Colorado and the Toyota Tacoma. And the Tacoma has a 42% market share in the midsize truck segment. It is a beast in that segment."
The Toyota Tacoma is a midsize pickup truck that sells extremely well. They’re saying it’s a major winner in its truck category.
The Toyota Tacoma is a midsize pickup truck that’s highlighted as one of the top sellers in its segment. The discussion frames it as a dominant model with a large share of the midsize truck market, indicating strong brand and product momentum.
market share
"And the Tacoma has a 42% market share in the midsize truck segment. It is a beast in that segment."
Market share tells you how much of the total sales in a category a particular truck takes. A higher number means it’s selling more than competitors in that same group.
Market share is the percentage of total sales in a category that a specific model captures. Here, the Tacoma’s market share is used to quantify its dominance in the midsize truck segment.
brand loyalty
"because they're entering a fiercely competitive segment where brand loyalty is through the roof."
Brand loyalty means people stick with the same truck brand because they’ve had good experiences. In trucks, that can make it harder for a new brand to win customers.
Brand loyalty refers to customers repeatedly choosing the same brand over time, often due to past ownership experience and perceived reliability. The speaker argues that truck buyers—especially Tacoma owners—are unlikely to switch to a new entrant like Kia quickly.
powertrain
"Right, it's almost pound for pound, the same in terms of the powertrain. And knowing Kia and Hyundai, they will do so quicker, they'll do so cheaper..."
The “powertrain” is the main set of parts that make the car move. It includes the engine or electric motors and the system that sends that power to the wheels.
A “powertrain” is the combination of components that generate and deliver power to the wheels—typically the engine (or motor), transmission, and related driveline parts. When the speaker says the plans are “the same in terms of the powertrain,” they mean the fundamental mechanical/propulsion setup is similar.
franchise dealers
"...they will do so quicker, they'll do so cheaper, and they will do so with their franchise dealers in tow."
“Franchise dealers” are local car dealerships that sell a specific brand’s cars. The point is that Kia and Hyundai can use their established dealer network to get cars in front of buyers quickly.
“Franchise dealers” are independently owned dealerships that sell a brand’s vehicles under an agreement with the manufacturer. The speaker suggests Kia and Hyundai can leverage this existing dealer network to scale sales faster.
chip shortage
"when you have major events that reset inventory, like we did a few years ago with the chip shortage, they vowed up and down to keep it at relatively lean levels, but it did creep up again."
The chip shortage was when the computer chips cars need weren’t available in enough quantity. That slowed down car production and changed how many cars automakers could sell.
The “chip shortage” was a period when semiconductor components needed for modern vehicles were in short supply. Because many car systems rely on chips, production was constrained and inventory dynamics shifted for years.
knock-on effects
"because of the knock-on effects from that supplier fire all the way back last fall."
“Knock-on effects” are secondary impacts that ripple from an initial event through the supply chain or market. Here, a supplier disruption earlier in the year can continue to affect inventory and availability later.
EVs
"but there is still some demand out there for EVs and some growing demand."
EVs are cars that run on electricity instead of gasoline. The point here is that people still want them, even when supply is uneven.
EVs are electric vehicles powered primarily by electricity stored in a battery. The segment highlights that even with supply disruptions, there can still be demand growth for EVs, which affects dealer inventory and automaker production decisions.
floor planning
"So for dealers, it means pretty simply, their costs stay low, stay lower. They pay what's called floor planning on their inventory."
Floor planning is the money dealers borrow to buy cars before they sell them. If the cars sit longer, the dealer keeps paying interest, which costs more.
Floor planning is the financing dealers use to pay for vehicles while they sit on the lot. Dealers typically pay interest on that borrowed money until the car is sold, so inventory levels directly impact dealer costs.
margins are tighter
"...Vehicles come from more sources, margins are tighter, and every buying decision carries more risk than it used to."
Tighter margins means the dealership makes less money on each car. When the market changes quickly, it’s easier to lose money if the pricing or inventory choices aren’t right.
“Tighter margins” means dealerships have less profit per vehicle after accounting for costs like wholesale pricing, reconditioning, floorplan interest, and overhead. In a shifting market, small pricing errors or wrong inventory choices can quickly erase profit.
limited visibility into what's actually working
"...disconnected tools, and limited visibility into what's actually working. The most successful dealerships"
This means the dealership doesn’t have clear reporting on what’s leading to sales. Without that, it’s tough to know which cars and pricing strategies are truly working.
This refers to insufficient analytics or reporting to understand which vehicles, pricing strategies, and sourcing channels are producing sales. Without visibility, dealers can’t optimize inventory mix or adjust quickly when demand shifts.
market data
"They're looking at market data, demand signals, pricing, and acquisition opportunities together..."
Market data is information about what’s happening in the car market—like what people are buying and what similar cars cost. Dealerships use it to avoid overpaying for inventory and to price cars so they move faster.
Market data refers to real-world information like local sales trends, competitive pricing, and consumer demand patterns. Dealerships use it to forecast what will sell and to set pricing and acquisition strategies more accurately.
demand signals
"They're looking at market data, demand signals, pricing, and acquisition opportunities together..."
Demand signals are clues that tell you what cars people actually want. If a model is getting lots of interest or sales, that’s a signal to stock more of it and price accordingly.
Demand signals are indicators that show how strongly customers want certain vehicles—often based on sales velocity, search interest, lead volume, and regional trends. In inventory strategy, these signals help decide which models to stock and when to adjust pricing.
General Motors
"Now, Mike, General Motors is bringing a sedan back to Buick's North American lineup"
General Motors (GM) is a major U.S. automaker that owns multiple brands, including Buick. The segment says GM is bringing a sedan back to Buick’s North American lineup, framing it as part of a broader sedan comeback discussion.
sedan segment
"Now, U.S. automakers have been abandoning sedans for years. Why would GM jump back into that segment now? Well, because it was a stupid decision"
A “sedan segment” just means the category of sedans—cars with a trunk. The conversation is about whether companies will put more effort into that type of car again.
The “sedan segment” is the market category of passenger cars with a separate trunk, typically positioned below SUVs/crossovers in many recent lineups. When automakers leave or return to this segment, it usually reflects changes in consumer preference, fleet mix, and profitability.
GM
"Why would GM jump back into that segment now? Well, because it was a stupid decision to get out of it in the first reach, and I'm not just talking about GM."
GM is short for General Motors, one of the biggest car companies in the U.S. The discussion is basically about whether GM will start selling sedans again after moving away from them.
GM (General Motors) is one of the major U.S. automakers being discussed as potentially re-entering the sedan market. The point is that GM’s product strategy affects the broader industry’s willingness to invest in sedans.
trunks
"You look at the foreign automakers who never left, who have continued to see strong sales in that market. People want trunks. They want lockable storage."
A trunk is the storage compartment in the back of a car. The point here is that some people still want that kind of space and privacy for their stuff.
“Trunks” are the enclosed storage area at the rear of a sedan, separate from the passenger cabin. The speaker highlights that many buyers still value this kind of lockable, dedicated storage.
Jim Farley
"Jim Farley's been hinting at this almost every chance he gets in interviews and podcasts for months. He said on the floor of the Detroit Auto Show,"
Jim Farley is Ford’s top executive. The speaker is saying he’s been signaling for months that Ford could bring sedans back.
Jim Farley is Ford’s CEO, and the segment credits him with repeatedly hinting that Ford may return to sedans. CEO comments like this often reflect internal product planning and timing.
entry point to the brand
"They're an entry point to the brand. And if you can, what Toyota's strategy has been for 60 years is, hey, bring them in young and then you have a smaller chance to lose them..."
It means the company wants you to start with a cheaper model so you get used to the brand. Then you may stay with them when you’re ready to upgrade.
This is a customer-retention concept where automakers use lower-priced models to establish brand familiarity and reduce the chance of losing customers. It’s often supported by consistent product updates, dealer support, and financing/lease programs.
Detroit three
"[1361.5s] The Detroit three left the midsize pickup market. [1364.3s] For about three years, Toyota Tacoma at that point"
“Detroit three” means the big three American car companies—Ford, GM, and Stellantis. The phrase is used because they’re historically based in the Detroit area.
“Detroit three” is the common nickname for the three major U.S. automakers: Ford, General Motors, and Stellantis (formerly Chrysler). In this context, it highlights which companies made the strategic decision to leave the midsize pickup segment.
GMC Canyon
"[1377.2s] and then they brought the Colorado and the Canyon back."
The GMC Canyon is another mid-sized truck from GM, sold under the GMC brand. The point is that GM brought back its midsize lineup across brands.
The GMC Canyon is GM’s other midsize pickup offering, positioned alongside the Chevrolet Colorado. Mentioning both highlights how GM covered multiple brand channels when it decided to return to the segment.
Alliance for Automotive Innovation
"Now, before we end off, Mike, the Alliance for Automotive Innovation is calling for the repeal of the federal gas tax."
This is an industry group that represents car companies and parts makers in the U.S. Here, they’re asking the government to change the federal gas tax to help with fuel prices.
The Alliance for Automotive Innovation is a major U.S. industry group representing automakers and suppliers. In this segment, it’s advocating policy changes related to fuel costs, specifically the federal gas tax.
gas tax revenue
"I mean, let's talk about where the gas tax revenue goes. It goes to fund the Department of Transportation, and it goes to highway improvements."
A gas tax is extra money added to each gallon of fuel. The revenue from that tax is commonly used to pay for road and highway work.
The “gas tax” is a per-gallon tax on gasoline that’s often earmarked for transportation spending. When people talk about “gas tax revenue,” they’re usually referring to how much money flows into road and highway budgets.
tires
"...and pay for suspensions and tires and everything else that comes from not taking care of your roads."
Tires wear faster when roads are rough because impacts and vibration increase tread and sidewall damage. The speaker is arguing that underfunded road maintenance raises tire replacement costs.
suspensions
"...and pay for suspensions and tires and everything else that comes from not taking care of your roads."
Your suspension is what helps your car ride smoothly and handle bumps. Bad roads can beat up parts like shocks and bushings faster.
Suspension systems (springs, shocks/struts, control arms, bushings) help keep tires in contact with the road and absorb bumps. Rough roads and potholes can accelerate wear and damage suspension components.
NTSB
"Come back on Monday for a conversation with Kristen Poland, deputy director of the NTSB's Office of Highway Safety about why the agency is investigating the 2024 BlueCruise crashes."
The NTSB is a U.S. safety agency that investigates crashes and tries to prevent similar incidents in the future. Here, they’re investigating crashes connected to a driver-assist system.
The NTSB (National Transportation Safety Board) is the U.S. agency that investigates transportation accidents and safety issues. In this segment, they’re looking into crashes tied to Ford’s driver-assistance features.
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