Chevy Just SHOCKED The Auto Industry | Dealer Explains | Episode 1031
About this episode
Jared Glover, VP of Jim Glover dealerships in Oklahoma, shares insider insights on Chevrolet's inventory strategy and market positioning. Chevrolet maintains a lean inventory with an 85-day supply, rewarding dealers for quick vehicle turnover, contrasting with higher supplies at Ford and Jeep. Jared discusses pricing strategies, customer retention through fair pricing during the pandemic, and the importance of entry-level models like the Trax and Trailblazer. He also touches on challenges with trim availability, recalls, and dealer transparency efforts to improve customer trust. The episode highlights how Chevrolet's approach benefits both dealers and customers amid shifting market dynamics.
Chevrolet
"...Chevy store, and then the CTGR store up in a suburb called Owasso just north of Tulsa... we've got a Chevy dealer on the show today... What the heck do we want to learn about what's going on with Chevrolet?"
Chevrolet is a big car company that makes many types of vehicles like trucks and cars. People often talk about how well Chevrolet is selling its cars and how many cars it has ready to sell.
Chevrolet is a major American automotive brand under General Motors known for producing a wide range of vehicles including trucks, SUVs, and passenger cars. It plays a significant role in the U.S. auto industry and is often discussed in terms of sales performance and inventory management.
General Motors
"First things first, general motors in Chevy in general, we want to spend some time there..."
General Motors is a big company that owns Chevrolet and other car brands. It makes and sells lots of different cars and trucks.
General Motors (GM) is one of the largest automotive manufacturers in the world and the parent company of Chevrolet. GM oversees multiple brands and is responsible for manufacturing, marketing, and sales strategies across its portfolio.
leaner inventories
"GM bets leaner inventories will help as industry braces for a sales slowdown... Jared is the leaner inventory working the way Chevrolet was hoping it would."
Leaner inventories mean car dealers keep fewer cars in their lots. This helps them save money and sell cars faster without having too many sitting around.
Leaner inventories refer to a strategy where dealerships and manufacturers keep fewer vehicles in stock to reduce holding costs and avoid excess supply. This approach aims to improve profitability by matching supply more closely with demand, especially during market slowdowns.
market days supply
"We got the latest market days supply information from Cox Automotive... Chevrolet with a below industry average market days supply."
Market days supply tells us how many days it would take to sell all the cars a dealer has if they keep selling at the same speed. Fewer days means they have fewer cars sitting around, which is usually good.
Market days supply is a metric that indicates how many days it would take to sell the current inventory of vehicles at the current sales pace. A lower number suggests a leaner inventory and potentially stronger demand, while a higher number indicates more supply relative to sales.
Cox Automotive
"We got the latest market days supply information from Cox Automotive... February, new vehicle inventory, stable headlines, uneven reality."
Cox Automotive is a company that helps car dealers and manufacturers by giving them important information about how many cars are available and how the market is doing.
Cox Automotive is a leading automotive services company that provides data, software, and marketing services to the car industry. Their market days supply data is widely used to analyze vehicle inventory levels and market trends.
Stellantis
"You know, which is kind of the scenario with Stellantis. But what Chevrolet seems to have done a really good job of is they kind of stayed the course through the pandemic..."
Stellantis is a big car company that owns many brands like Jeep and Dodge. It was created when two big car companies joined together.
Stellantis is a multinational automotive manufacturing corporation formed by the merger of Fiat Chrysler Automobiles and PSA Group. It owns brands like Jeep, Ram, Dodge, and Chrysler, and is a major player in the global auto industry.
Chevrolet Trailblazer
"So, you know, the tracks has been a home run, the trailblazer. I mean, that thing's been around for a number of years now and it's still incredibly popular."
The Chevrolet Trailblazer is a small SUV that many people like because it is affordable and useful for everyday driving. It has been around for a while and is still a popular choice.
The Chevrolet Trailblazer is a subcompact SUV produced by Chevrolet. It has been popular for several years and is known for its affordability and versatility in the entry-level SUV segment.
Chevrolet Equinox
"We just got a new Equinox and they brought it to market at a price point that is really, really competitive in that segment."
The Chevrolet Equinox is a small SUV that Chevrolet sells. They recently made a new version that is priced to be affordable and compete well with other similar SUVs.
The Chevrolet Equinox is a compact SUV that Chevrolet recently updated with a new generation. It is positioned competitively in its segment with pricing that appeals to many buyers looking for a practical and affordable SUV.
throughput
"Can you explain to our audience what throughput is, please? Sure. So basically, in a nutshell, it's how quickly does a vehicle sell once it's on the ground."
Throughput means how fast a car sells at a dealership after it arrives. The faster cars sell, the more new cars the dealer can get.
Throughput in automotive sales refers to how quickly a vehicle sells once it arrives at a dealership. It is a key metric for dealers to manage inventory and receive new allocations from manufacturers.
Tesla By Model
"...t's on the ground. So they actually will show us by model. I'm sure there's a breakdown by trim."
The Tesla Model Y is a small electric SUV made by Tesla. It uses electricity to drive and has many high-tech features.
The Tesla Model Y is a compact all-electric SUV that combines performance, range, and advanced technology. It is a popular model in Tesla's lineup and often analyzed by trim and features.
Ford
"or cross shopping Chevrolet versus a Ford or a Stalantis product,"
Ford is a well-known American car company that makes trucks and cars, often competing with Chevrolet.
Ford is a major American automotive manufacturer known for its trucks, SUVs, and cars. It is a key competitor to Chevrolet in many vehicle segments.
market day supply
"because of the low market day supply, they're going to price things higher"
Market day supply means how many days it would take to sell all the cars a dealer has if no new cars come in. If there are fewer cars, prices might be higher.
Market day supply refers to the number of days it would take to sell all the current inventory of vehicles at the current sales pace. A low market day supply indicates limited inventory, which can affect pricing and availability.
profit margin
"there's going to be some dealers that are protecting their profit margin. And, you know, because of the low market day supply,"
Profit margin is the extra money a dealer makes when they sell a car after paying for it.
Profit margin is the difference between the cost to acquire or produce a vehicle and the price at which it is sold. Dealers aim to maximize profit margin to increase earnings.
dealer pricing strategies
"they're going to price things higher and say, hey, if I'm only getting so many of them, I need them to make more gross profit per. And then, but the flip side is, okay, well, what if we could be the front runner and put our best foot forward from a price standpoint and sell things faster,"
Dealers can choose to sell cars for more money each or sell more cars by pricing them lower, depending on their plan.
Dealer pricing strategies refer to how car dealerships decide to price their inventory, either by maximizing profit per vehicle or by pricing competitively to increase sales volume and turnover.
parts and service departments
"and you're creating more customers for your parts and service departments every month?"
Car dealers also fix cars and sell parts, which helps them make money after selling the car.
Parts and service departments at dealerships provide maintenance, repairs, and replacement parts for vehicles, often generating ongoing revenue beyond the initial vehicle sale.
MSRP
"we were the dealer that didn't sell things over MSRP. Maybe that was smart, maybe it wasn't. We believed it was the right thing to do long term."
MSRP is the price the car company thinks the car should cost. Sometimes dealers sell cars for more or less than this price.
MSRP stands for Manufacturer's Suggested Retail Price, which is the price a car manufacturer recommends dealers sell a vehicle for. Dealers may sell above or below this price depending on market conditions.
Jeep Grand Wagoneer
"and was trading off a Challenger Hellcat for a new Grand Wagoneer today. So we certainly see that and I think it pays off in the long term."
The Jeep Grand Wagoneer is a big, fancy SUV that can go off-road but also has a lot of nice features inside. It's one of Jeep's top models.
The Jeep Grand Wagoneer is a luxury SUV that combines off-road capability with upscale features and spacious interiors. It represents Jeep's flagship model in the full-size SUV segment.
Dodge Challenger
"He has since moved to Houston. Business took him to Houston and he came back up and was trading off a Challenger Hellcat for a new Grand Wagoneer today."
The Dodge Challenger Hellcat is a very fast and powerful car that looks like a classic muscle car. Many people like it because it can go really fast.
The Dodge Challenger Hellcat is a high-performance muscle car known for its supercharged V8 engine and aggressive styling. It is popular among enthusiasts for its power and straight-line speed.
Ford Mustang
"Not even to mention the Wagoneer S, which is through the roof, or the Mustang Mach-E, which is the 2024s. We still have dealers selling them with $10,000 discounts."
The Mustang Mach-E is a fully electric SUV made by Ford. It doesn't use gas and is part of Ford's effort to make electric cars that are fun and practical.
The Ford Mustang Mach-E is an all-electric SUV introduced by Ford as a modern interpretation of the Mustang brand. The 2024 model year continues to offer electric performance and technology, competing in the growing electric vehicle market.
Ford F150S
"which is the 2024s. We still have dealers selling them with $10,000 discounts. Or to mention the 28,000 left over 2025 F-150s that are still sitting out there, you run and own multiple brand stores. How does this change the dynamic for your operators, for your general managers, for your sales"
The Ford F-150 is a large truck made by Ford that people use for work and everyday driving. It's very popular because it can carry heavy loads and drive well in many conditions.
The Ford F-150 is a full-size pickup truck known for its strong performance, versatility, and popularity in the North American market. The 2024 and 2025 models are notable for significant dealer discounts and leftover inventory, making them attractive options for buyers seeking value in a best-selling truck.
Jeep Grand Cherokee
"...r sitting in my truck talking specifically about Grand Cherokee because I had a limited Grand Cherokee L hit the..."
The Jeep Grand Cherokee is a medium-sized SUV made by Jeep that can drive well both on roads and rough terrain. The Limited Grand Cherokee L is a version with extra seats for more passengers.
The Jeep Grand Cherokee is a midsize SUV recognized for its off-road capability combined with comfortable on-road driving. The Limited Grand Cherokee L variant adds a third row of seating, making it a versatile option for families needing extra space.
transaction price
"And the point of view was, well, the transaction price is X when you compare it to these other vehicles in the segment. But what I was concerned about is that the transaction price might be in the low fifties because dealers are taking $13,000 off with incentives in the whole nine yards."
Transaction price is the real amount of money someone pays to buy a car, which might be less than the sticker price because of deals or discounts.
Transaction price refers to the actual price paid by the customer for a vehicle, which can be different from the MSRP due to incentives, discounts, or dealer negotiations.
dealer incentives
"But what I was concerned about is that the transaction price might be in the low fifties because dealers are taking $13,000 off with incentives in the whole nine yards. And the low fifties is where that segment needs to transact."
Dealer incentives are special discounts or deals that car companies give to dealers to help sell cars. These can make the car cheaper for buyers.
Dealer incentives are discounts or financial benefits offered by manufacturers to dealers to encourage sales. These incentives can reduce the transaction price for customers but may not always be advertised openly.
Jeep Wrangler
"...e has gone through several price adjustments. The Wrangler and the Gladiators have dropped dramatically. I'..."
The Jeep Wrangler is a small SUV made by Jeep that is very good at driving off-road. It has a tough look and is popular for outdoor activities.
The Jeep Wrangler is an iconic off-road SUV known for its rugged design and strong off-road capabilities. Recent price drops have made it more accessible, reflecting adjustments in the market for this popular model.
Cadillac Escalade
"...ike $123,000 MSRP. And it is as nice as a loaded Escalade. So it's up there with loaded Escalade pricing. ..."
The Cadillac Escalade is a big, fancy SUV made by Cadillac. It has a lot of luxury features and costs a lot of money.
The Cadillac Escalade is a full-size luxury SUV known for its upscale interior, powerful performance, and high price point. It is often discussed in the context of premium SUV pricing and features.
Z71
"We can't keep a Z71 in stock. The high countries are incredibly popular. But then Premier is one of those trims that always seems to age on us a little bit."
Z71 is a special package for Chevrolet trucks and SUVs that makes them better for driving off-road. It adds things like stronger suspension and protection under the vehicle.
Z71 is a Chevrolet off-road package available on trucks and SUVs like the Tahoe. It includes features such as upgraded suspension, skid plates, and unique styling to improve off-road performance.
trim
"The high countries are incredibly popular. But then Premier is one of those trims that always seems to age on us a little bit."
Trim means the different versions of a car that have different features and prices. Some trims have more luxury or better equipment than others.
A trim level refers to a version of a car model that comes with a specific set of features and options. Different trims often vary in luxury, performance, and price.
inventory constraint
"I think that's where, you know, if I could fix anything about Chevrolet, it would be the constraint side of things because I don't understand why they can't build Z71s as often as they build Premier's."
Inventory constraint means the dealer doesn't have enough of a certain car because the factory isn't making enough or parts are hard to get. This makes it harder to buy that car.
Inventory constraint refers to a situation where a dealership cannot stock enough of a particular vehicle or trim due to production limits or supply chain issues, affecting availability for customers.
supplier contracts
"You know, I'm sure it's a lot deeper than that because they've got supplier contracts with wheels and the front bumpers are different."
Supplier contracts are deals between car companies and the companies that make parts. These deals decide how many parts are made and can affect how many cars get built.
Supplier contracts are agreements between automakers and parts suppliers that dictate the quantity and type of components provided, which can impact production decisions and vehicle availability.
compact and mid-sized SUV segment
"That's a good question. So that's a new, kind of a new entrant into the biggest segment in the game, that compact and mid-sized SUV. I like it."
Compact and mid-sized SUVs are medium-sized cars that are bigger than small cars but not too big. Many people buy these kinds of cars because they are practical and comfortable.
The compact and mid-sized SUV segment refers to a popular category of sport utility vehicles that are larger than small cars but smaller than full-sized SUVs. This segment is highly competitive with many models from various manufacturers.
hybrid system
"But I think the Cherokee, the powertrain's awesome. The new hybrid system is awesome. The style is good. We got our first one a few weeks ago, and I got a chance to go drive it."
A hybrid system means the car uses both gas and electricity to run. This helps save fuel and is better for the environment.
A hybrid system in vehicles combines an internal combustion engine with an electric motor to improve fuel efficiency and reduce emissions. It allows the car to use electric power at low speeds and gasoline power when more performance is needed.
lease markets
"But I think in the lease markets, the Cherokee will be a good play. So hopefully that's a good step in the right direction for the Jeep brand."
Lease markets are places where many people rent cars for a few years instead of buying them. This can make it cheaper to drive a new car.
Lease markets refer to regions or customer segments where vehicle leasing is popular. Leasing allows customers to use a vehicle for a set period with lower monthly payments compared to buying.
dock fees
"So dealer add-ons, being transparent there, dock fees that aren't through the roof, not charging extra above on state registration fees and things like that."
Dock fees are extra charges the car dealer adds to cover getting the car ready for you, like cleaning and checking it before you drive it home.
Dock fees, also known as dealer preparation fees, are charges dealerships add to cover the cost of preparing a new vehicle for sale, including cleaning and inspection.
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