Feb. 7, 2026 | Weekend Drive: NADA 2026 wrap-up; UAW-VW deal
About this episode
The latest Weekend Drive covers the NADA 2026 show in Las Vegas, highlighting the industry's optimism despite potential profit declines. Hosts Kellen Walker, Michael Martinez, and Larry Veliquette discuss the UAW's historic tentative deal with Volkswagen for its Chattanooga plant, marking the first contract with a transplant automaker since 1979. The conversation also touches on the implications of this deal for labor relations in the South and the potential entry of Chinese automakers into the U.S. market, with varying opinions on the feasibility of joint ventures.
Automotive News’ Michael Martinez and Larry P. Vellequette discuss the week’s biggest stories from the NADA Show in Las Vegas, including China making waves at the show and J.D. Power’s forecast for dealer profits in 2026. Plus, the UAW and Volkswagen reach a tentative agreement in Chattanooga.
Volkswagen
"Now, the UAW reached a tentative deal with Volkswagen for the Chattanooga plant."
Volkswagen is a car company from Germany that makes many popular cars. They are well-known for models like the Beetle and Golf.
Volkswagen is a German automotive manufacturer known for producing a wide range of vehicles, including the iconic Beetle and the Golf. The company has a significant presence in the global automotive market and is known for its engineering and innovation.
UAW
"Now, the UAW reached a tentative deal with Volkswagen for the Chattanooga plant."
The UAW is a union that helps workers in car factories get better pay and working conditions. They negotiate agreements with car companies.
The UAW, or United Auto Workers, is a labor union representing workers in the automotive industry in the United States. It plays a crucial role in negotiating contracts and working conditions for its members.
Toyota Camry
"...you're sitting with a Camry or something at $35,000. And suddenly, there's another, there's a mid-sized sedan..."
The Toyota Camry is a well-known car that many people like because it's dependable and comfortable to drive. It's a good choice for families and commuters.
The Toyota Camry is a popular mid-sized sedan known for its reliability and comfort. It has been a best-seller in the U.S. for many years, often praised for its fuel efficiency and spacious interior.
Ford
"...I had a really interesting conversation with Andrew Frick at Ford. He's the president of Ford's Gas and Electric Vehicle Business Units..."
Ford is a well-known car company from the United States that makes many types of vehicles, like trucks and cars. They are also starting to make more electric cars.
Ford is a major American automotive manufacturer known for producing a wide range of vehicles, including trucks, SUVs, and sedans. The company has a significant presence in both gas and electric vehicle markets.
BYD
"...would Ford caution dealers against getting a BYD or a G. Lee franchise if they were out of the US?..."
BYD is a car company from China that makes electric cars and batteries. They are becoming more popular around the world, especially for eco-friendly vehicles.
BYD is a Chinese automotive manufacturer known for its electric vehicles and batteries. The company has rapidly expanded its presence in the global automotive market, focusing on sustainable transportation solutions.
G. Lee
"...against getting a BYD or a G. Lee franchise if they were out of the US?..."
G. Lee is another car company that might not be as famous, but it's mentioned in discussions about car dealerships and franchises.
G. Lee is less well-known compared to other automotive brands, but it is mentioned in the context of franchises that dealers might consider. Understanding the competitive landscape is important for dealers.
Honda Civic
"...70s, 70s Ford, and you looked at a Honda, a Honda Civic from that period or a Toyota Corolla from that pe..."
The Honda Civic is a small car that has been around since the early 1970s. It's loved by many people because it's dependable, gets good gas mileage, and is easy to drive, making it a great option for everyday use.
The Honda Civic is a compact car that has been in production since 1972 and is known for its reliability, fuel efficiency, and practicality. It has evolved through multiple generations, becoming a popular choice for both daily commuters and car enthusiasts alike, often discussed for its role in shaping the compact car segment.
Toyota Corolla
"...a Honda, a Honda Civic from that period or a Toyota Corolla from that period. Those were radically different from what's..."
The Toyota Corolla is a small car that is very popular because it is affordable and gets good gas mileage. It has been sold for many years.
The Toyota Corolla is one of the best-selling cars worldwide, known for its practicality, fuel efficiency, and affordability since its launch in the 1960s.
fuel efficient
"...their vehicles were tiny and fuel efficient. Right. And there was nothing in the market that..."
Fuel efficient means a car can go a long way using less gas. It's a good thing because it saves money on fuel.
Fuel efficiency refers to how far a vehicle can travel on a certain amount of fuel, typically measured in miles per gallon (MPG).
JD Power
"So guys, real quick, let's talk about the JD Power forecast for dealer profits this year. Mike, JD Power expects US dealer profits to drop 12% this year to $25.4 billion."
JD Power is a company that collects and analyzes data about cars and customer experiences. They help people understand how well cars perform and how satisfied owners are with them.
JD Power is a global leader in data analytics and consumer intelligence, particularly known for its automotive industry insights, including vehicle quality and customer satisfaction surveys.
dealer profits
"Mike, JD Power expects US dealer profits to drop 12% this year to $25.4 billion. That's down from $28.9 billion in 2025. What's behind that decline?"
Dealer profits are the money that car dealerships make when they sell cars and offer services. These profits can change based on how many cars they sell and how much they spend to run the business.
Dealer profits refer to the earnings that car dealerships make from selling vehicles and providing services. These profits can fluctuate based on market conditions, sales volume, and operational costs.
fleet and retail sales
"But no, I think when you look at the numbers, JD Power is predicting flat sales. And it's funny, I think there's an identical breakdown between fleet and retail 25 to 26 that they expect."
Fleet sales are when companies buy many cars at once, like for delivery services. Retail sales are when regular people buy cars for personal use. Both types of sales affect how much money car dealerships make.
Fleet sales refer to the sale of multiple vehicles to businesses or organizations, while retail sales involve selling vehicles directly to individual consumers. The balance between these two types of sales can impact overall dealership profits.
EVs
"But I think there are enough tailwinds, things like continued profits just from the fact that you don't have to sell as many EVs."
EVs stand for electric vehicles, which are cars that run on electricity instead of gas. They are better for the environment and can save money on fuel.
EVs, or electric vehicles, are cars that are powered entirely by electricity instead of gasoline or diesel. They are becoming increasingly popular due to their environmental benefits and lower operating costs.
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