Reynolds & Reynolds makes parts that help cars handle better, like special springs and shock absorbers. They’re a big name in car parts for people who want their cars to drive smoother or faster.
SPARC AI is a software tool that collects information from cars, like speed and engine data, so experts can see how the car is working and spot problems early.
Gestamp makes metal pieces that go into cars, like the body panels and parts that keep the car strong. They help big car makers make lighter and safer vehicles.
Ford is a big car company from the U.S. that makes trucks, cars, and SUVs like the F‑150 and Mustang.
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This podcast is brought to you by Reynolds & Reynolds, the industry leader in automotive technology.
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Hey, this is Jake Neer, Daily Drive Executive Producer here in Detroit.
On today's bonus episode, we'll hear more from the interview between Automotive News Europe's Nick
Gibbs and Francisco Riberes, the executive chairman of Spanish metal parts supplier Gestamp.
They talk pretty candidly about how the traditional supplier investment model looks
and his call for better ways to finance vehicle programs. That's coming up in a bit. But first,
on Friday's show, we brought you part of an exclusive interview with the incoming chair
of NADA, Rob Cochran. In this part of the conversation, Automotive News Director of
Retail Coverage, Melissa Burden, asked him about the upcoming NADA show in Las Vegas
and his expectations for the retail market in the new year.
What is your outlook for the overall auto vehicle market in 2026?
If you have any ideas on the SAR or sales?
I'm not an economist. Most of the SAR projections that I've seen are slight
declines from where we are, where we'll finish 2025. And I would, my instinct would be to,
you know, to go along with that. Although as we've been, as we've gone through this,
we know a lot can, a lot can change in the course of a year or even a month in our industry. So at
this point, as we start, as we're getting ready to start the year, the expectation would be for a
good year, maybe not quite as good as what we had and experienced in 2025.
You talked earlier about the franchise system and working to protect that. And I wanted to ask,
I know NADA's long work to protect the franchise dealer system. What are you planning to do,
you know, in your term to continue to protect that, you know, as we see entrants like Scout Motors?
Well, as I, as we mentioned, we've been, we've been adamant in, in, in supporting,
protecting the franchise system. That's one of the, it's one of the things we've done. And we,
you know, as we go back, we, there's been independent research that has occurred that
the research finds that the franchise system is the most efficient way to, to deliver vehicles and
create good customer experience. So we know that it's, it's not just us saying it, there's other
research out there that, that has supported this. So it's clearly, it is, disappointment is, is,
is too shallow of a word. It is really disturbing when, when we see efforts from OEM partners that
we've, you know, that we've invested with over the years to, to work, to compete against us and
directly against us with, you know, the same companies, the same people, the same, the same
lines coming, coming, except, you know, coming back against us. So NADA with the States,
we will be, we will, we will support and we are adamantly opposed to any, you know, any attempts
to usurp the system. Well, let's shift gears a little bit. Let's talk a little bit about the
2026 show. What should dealers who attend the NADA show 2026 expect? It's going to be a great show.
It, there's a Formula One theme. We've got a, we've got a great kickoff event at,
you know, at a Formula One center in Las Vegas. Great, great speakers, great keynote speakers.
Magic Johnson is slated to be with us on Friday of that, of that, of that week. It's the, the,
the days are a little different. So we're starting a little earlier and we're actually finishing on
Friday this year. So that I think will be exciting. It's super, it'll be Super Bowl weekend
leading up to Super Bowl weekend in Las Vegas. So that'll be exciting. So there's a lot of energy,
energy around it. I think it's going to be, I think it's going to be a great, great event.
Our own Melissa Burden spoke with NADA's incoming chair, Rob Cochran,
president and CEO of No. 1 Cochran in Western Pennsylvania.
Coming up, we'll hear more from Gestamp's Francisco Riberes
about the difficulty suppliers have financing auto projects.
That's next on this bonus episode of Daily Drive.
General Motors is ramping its autonomous driving technology,
targeting a 2028 launch for its Eyes Off driving system.
On this week's episode of the Automotive News Shift podcast,
GM's Ryan Fowler and Jason Echelman joined the show.
They talk about how the automaker is rolling its former Cruze Robotaxi unit
into its Super Cruze team and its ambitions for self-driving tech.
Cruze is bringing their expertise and just raw horsepower in embedded AI modeling.
I'm Molly Boygon. Join me and Automotive News General Motors reporter
Lindsay Van Hulley on Shift, available this Sunday, wherever you get your podcasts.
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changing the game by ensuring your solutions are making life easier and working at their
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bring everything together in one intuitive command center for smart, fast decision making.
Ray answers your questions at any time, providing instant messaging,
insights, help videos or live support. Instantly analyze your sales history and
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Schedule an appointment at our booth for everything from a short demo to a full
retail management system demonstration using our core AI products. Visit rayray.com slash NADA.
That's R-E-Y, R-E-Y dot com slash N-A-D-A.
Welcome back. On Wednesday, Gestamp's Francisco Riberes talked about the immediate pressures
facing suppliers, tariffs, EV program slowdowns and policy whiplash. Today, we're sharing more
from that conversation where Riberes gets into something you don't often hear executives discuss
publicly, the breakdown of the traditional supplier investment model and why the industry
needs a new way to finance vehicle programs. He spoke with Automotive News Europe editor, Nick
Gibbs. The carmakers find it difficult to predict what's going to happen because they don't know
what the demand is, but also what the price they should be fixing their car at.
How do you help with that? How do you help with their
need to be more flexible on the price in case some competitors come from China and is
undercutting them?
I mean, I understand that their job is difficult, but the job as a supplier is also very difficult
because we are even receiving the pressure from them every year to reduce the cost. So,
usefully, that was not the case. I mean, we need to rely on our customers. They need to
do all their plannings and all their different studies. They are investing a huge amount of money
and we need to follow. Whenever they are asking us to do a commitment, they need to be… I mean,
then they are responsible for this kind of commitment. I think the real problem for me
is that with this level of uncertainty, the existing model between the carmaker and suppliers
of what they want to do in-house and what they want suppliers to do, what is this
difference between make or buy, it's going to be different because if today the only model is
I have this plan to manufacture a vehicle, I decide that I do this part in-house and then
the rest I buy. But if there is not an existing base of suppliers with capabilities to invest,
then there is a need to find a way to help them doing that because they are going to have also
some pressure in terms of financing. So, what is going to be the model for the future if this
basic make or buy is not working anymore because we need to have another kind of financial system
in place. Okay, another kind of… I mean, so a sort of partnership. Yeah, I mean,
we're seeing that more and more with the tech companies. Is that going to… but you're not
seeing it in sort of… We need to find other ways. I mean, if today they decide to do it in-house,
they cover customers, invest 100%. If there is a supplier doing that, the supplier is investing
100%. Okay. If in the last year the supplier base is not very healthy and the financial system is a
little bit difficult in order to give money to the players, how you are going to finance the new
projects, the new vehicles? Yeah. So, probably there has to be new ways of financing in place.
Today, there is not too much asset financing in this sector like we have it in other kind of
sectors. So, probably things should be able to change a little bit because today the reality
is that the automotive sector is not the most attractive for the banks. So, it's not going to be
easy to supply for the next products to come. So, who provides this financing then?
Today, the car makers have their own money and they have been healthy so far,
but the suppliers do their own. I mean, we need to finance our own investments.
But if for the future we are a little bit trapped with the old problems, which volumes are not
coming, how we are going to finance the future? So, this kind of balance, it would make another
kind of agreements between OEMs and suppliers. Automotive News Europe's Nick Gibbs spoke with
Gestamp Executive Chairman Francisco Riberes. You can read more about that interview on
autonews.com. Quick note, this is the last bonus episode for Daily Drive of 2025.
Throughout this week and next, we'll be bringing you our year in review series
covering all of the biggest stories and trends from each corner of the auto industry. We're
kicking things off on Monday with the automaker team at Automotive News with a specific look at
Ford and Stellantis. You're not going to want to miss those episodes. Thanks for listening to this
bonus episode and we hope you have a happy and healthy holiday season and new year.
About this episode
Francisco Riberes, executive chairman of Gestamp, discusses the challenges facing automotive suppliers in financing vehicle programs amid a changing market landscape. He emphasizes the need for a new financial model to support suppliers, who are under pressure from carmakers to reduce costs while managing uncertainty in demand and pricing. Riberes advocates for a partnership approach to financing, contrasting the current reliance on traditional investment models. The episode also touches on insights from NADA's incoming chair, Rob Cochran, about the retail market outlook for 2026.
Gestamp Executive Chairman Francisco Riberas explains why he thinks the century-old model for financing new vehicle programs is breaking down and what needs to replace it. Plus, more from NADA's incoming chair Rob Cochran on dealer expectations for 2025.
