Driverless cars are cars that can drive themselves without a person actively steering. Rules about things like steering wheels can change how these cars are built.
An auto safety regulator is a government group that makes safety rules for cars. In this story, they’re talking about whether driverless cars must still have steering wheels.
Aaron Keating is the Cox Automotive expert being quoted. He says the affordability problem isn’t as simple as it sounds and that dealers might be able to make more money than people think.
An affordability crisis means cars feel too expensive for a lot of people. The guest says the situation is more complicated than it sounds and that dealers may have more opportunity than people assume.
Cox Automotive is a company that tracks and analyzes the auto industry. In this segment, their expert is explaining what’s really going on with car affordability and dealer profits.
Volkswagen Group is the big company that makes Volkswagen cars (and other brands too). Here, they’re talking about shrinking how many different models they sell and how many cars they build.
Chinese competition means Chinese car brands are selling more and putting pressure on other automakers. The host says it’s one reason Volkswagen’s profits are getting squeezed.
Profit margin is how much money a company keeps as profit compared to what it earns from sales. Lower profit margins mean the business is making less profit per car sold.
Here, requirements are official rules that driverless cars must follow. The safety chief is saying they may consider dropping the rule that these cars must include steering wheels.
Autonomous vehicles are cars that can drive on their own using cameras and sensors. The point here is that rules designed for human driving controls may not make sense for self-driving cars.
Normally, cars have a brake pedal you press with your foot. This story says the government changed a rule that would have required those pedals even on vehicles that aren’t meant to be driven by a person.
Tesla’s CyberCab is being talked about as a self-driving taxi concept. The government changes mentioned would make it easier to build cars that don’t rely on a human driver pressing pedals or using manual controls.
“Robotexies” means self-driving cars used like taxis or ride-hailing. It’s basically the idea of calling a car that drives itself.
Car
Infiniti QX-65
The Infiniti QX-65 is a mid-sized crossover with two rows of seats. In this segment, the hosts say it’s important because it’s aimed at a big customer group and could become one of Infiniti’s top-selling models.
Mid-sized crossovers are the common “family SUV” size—bigger than the smallest SUVs, but not as huge as full-size ones. The host says this size class is popular, which is why the QX-65 is aimed there.
A two-row crossover has two rows of seats instead of three. The host is saying the QX-65 is for people who want most of the bigger SUV’s benefits, but don’t need the extra row.
The Infiniti QX60 is a mid-sized SUV-style vehicle made for everyday driving and family use. It’s built with two rows of seats, so it’s aimed at people who want more space than a smaller car but don’t need a third row. It may be mentioned because it helps fill a specific size category in Infiniti’s lineup.
A V6 option means the car will be offered with a V6 engine. A V6 is a type of engine that many people like for smooth power in a family-sized luxury SUV.
“Luxury midsize crossovers” are upscale SUVs that are in the middle size range. The hosts use this category to talk about what engine types buyers in that segment tend to prefer.
“Nissan platforms” means the new Infiniti crossovers will be built using the same basic engineering foundation as certain Nissan vehicles. That can help manufacturers build new cars faster and more efficiently.
Concept
shot in the arm
A “shot in the arm” means something that gives a company a quick boost. Here, the question is whether new Infiniti models will help the brand’s sales and reputation.
A “shrunk lineup” means the brand sells fewer different models. If there are fewer models to choose from, dealers often sell fewer cars, which can reduce their profits.
The Infiniti QX55 is a crossover SUV model from Infiniti. In the podcast, it’s brought up because tariffs tied to where it was built affected the lineup, meaning fewer models were available. That can affect what cars show up at dealerships.
The Infiniti QX50 is a crossover SUV that’s meant for daily driving and carrying people comfortably. The podcast mentions it because tariffs related to its production location affected which models were available, so the brand’s lineup got smaller. That can change what cars dealers can stock.
Dealer profitability is how much profit car dealers are making. The host is saying Infiniti dealers are earning about half as much as they did the previous year’s first half.
GM Energy is a part of General Motors that works on energy technology. They’re talking about it because it’s helping handle electricity demand and keep the power grid steady.
Grid stability means the electric grid stays steady and reliable as electricity demand changes. The segment says GM Energy is testing tech to help keep the grid from getting out of balance.
DOT typically refers to the U.S. Department of Transportation, a federal agency that oversees transportation policy and regulation. In the context of vehicle safety, it works alongside other regulators and standards bodies.
Concept
federally mandated for homologation in the US
Homologation is basically “getting approval” so a car can be sold under safety rules. The speaker is saying only some safety tech is required by federal law, while other safety progress is driven by testing and ratings.
Company
Institute for Insurance Institute for Highway Safety
This is the IIHS safety organization. They test cars and publish results that many people use when deciding what’s safe.
Customer expectations are what buyers start to assume will be standard in a car. If enough people expect a feature, companies add it—often making the car more expensive.
Apple CarPlay is a feature that connects your iPhone to your car’s screen. It lets you use apps like maps, music, and calls while you drive, using the car’s controls.
Term
stolen vehicle alerts
Stolen vehicle alerts are notifications your car sends if it thinks someone is stealing it. They can warn you if the car is opened, moved, or started without permission.
Term
passenger assist programs
Passenger assist programs are safety features that help protect people in the car. They can provide warnings or support systems that reduce the chance of accidents or injuries.
In cars, subscriptions can mean paying ongoing money to turn on certain features. Instead of getting everything included at the start, you might pay later to unlock what you want.
Lane deviation means the car is drifting out of its lane. Many modern cars can detect that and warn you or help steer you back.
Concept
optionalit
Optionality means you can choose which features you want to pay for. The point is that some buyers want to decide for themselves instead of accepting a fixed bundle.
The “affordability myth” is the claim that there are no affordable cars anymore. The point is that prices today need to be compared to the past in a fair way, not just by looking at today’s numbers.
The Hyundai Venue is a small SUV that’s meant to be one of the cheaper options. The host uses it to show that today’s “cheap” prices can still be higher than they used to be when you account for inflation.
The “third row” is the extra row of seats behind the main back seats. Some SUVs have it for extra passengers, but it can make the vehicle bigger and more expensive.
A “K-shaped economy” means the economy is helping some people a lot while leaving others behind. In car shopping, that can translate into some people buying new cars and others keeping older ones longer.
“Service parts” are the replacement pieces used to fix or maintain a car—things like filters, brakes, and other parts that wear out. Dealerships make money by selling these parts along with doing the work.
In dealership terms, “fixed operations” usually means the service and parts department—like repairs, oil changes, and replacement parts. Dealerships rely on this side for steady income, not just selling new cars.
Independent shops are regular repair businesses that aren’t the car brand’s dealership. They can do maintenance and repairs, and the discussion here is about where customers end up for service.
A “virtuous cycle” means one good dealership habit leads to another. If a shop keeps your car running well and communicates clearly, you’re more likely to come back later—maybe to buy a newer or used car.
This means the steps a shop takes to figure out what’s wrong, fix it, and keep your car running. The key point is clear communication about what it will cost and how long it will take.
A “trade-in” is when you give your current car to the dealer and use its value toward buying a different car. It’s basically how many people upgrade without selling the car themselves.
A “flywheel” here means dealership service can build momentum. If the service department helps you keep your car in good shape, you’re more likely to trust the dealership later when you’re ready to trade it in or buy another car.
“Fixed ops” is dealership jargon for the service and parts side—repairs, maintenance, and selling parts. It’s the part of the business that brings customers back over time, not just when they buy a car.
“Menu pricing” means the shop posts set prices for common services, like an itemized list. The idea is to make it easier to know what you’ll pay before work starts.
“Customer perceptions” means what customers think is fair or expensive, even if the final bill isn’t actually higher. How the shop explains pricing and value can strongly affect that belief.
“Market research” here means gathering local pricing and customer data to understand how a dealership’s service prices compare to competitors. The point is to separate perception (“you’re more expensive”) from reality by using data to adjust marketing and pricing strategy.
“Service pricing transparency” means being clear about the cost and what you’re paying for. The goal is to help customers understand the bill before they commit to the work.
A “manufacturer’s dealership” is the official dealer for a car brand. The idea is that brand dealers can offer service that matches how the car was designed, which can matter more on newer, more complex vehicles.
LIVE
Welcome to Daily Drive for Friday, July 10th, 2026.
I'm Jake Nier in Detroit, in for Kellan Walker.
Today on the show, Volkswagen plans to cut its model lineup by up to half.
Toyota's move out of Mexico is rannling the country's entire auto sector.
And the nation's top auto safety regulator says steering wheels may not belong in driverless
cars.
Plus, Cox Automotive's Aaron Keating says the affordability crisis isn't quite what
you think it is, and dealers may be sitting on a bigger profit opportunity than they realize.
Let's run through all the news you need to know to keep up in the auto industry.
Volkswagen Group is planning to slash its roughly 150 model lineup by up to half, and
cut production capacity from 10 million vehicles a year to 9 million.
The move comes as the automaker faces eroding profits from Chinese competition, US tariffs,
and high costs at home.
Those factors helped cut profit margins in half between 2021 and 2025.
But analysts from Bloomberg Intelligence and Bernstein say the plan is short on specifics,
and VW's own supervisory board voted down a deeper restructuring proposal 12-7.
Toyota's decision to move to coma production from Mexico to Texas is sending shock waves
through the Mexican auto industry, and it may just be the start, with President Trump opting
for annual USMCA reviews instead of a long-term renewal.
Automakers are now reviewing backup plans, trimming output, and rethinking plant expansion
deals.
Mexico's auto sector accounts for 4.5% of the country's GDP, and the uncertainty isn't
going away.
And the nation's top auto safety chief says his agency absolutely will consider ending
requirements that driverless cars include steering wheels.
NHTSA administrator Jonathan Morrison made the comments in a CNBC interview Wednesday,
saying it doesn't make any sense to require manual controls on vehicles never meant to
be driven by a human.
It follows NHTSA's move last month to drop the mandate for manual brake pedals and autonomous
vehicles, a regulatory shift that could clear the way for robotexies like Tesla's CyberCab.
And those are today's headlines.
You can find more details on all those stories at AutoNews.com.
Infiniti is back in the conversation, and our own Irvox Carcaria has been writing about
why the QX-65 might be the most important new model the brand has launched in years.
He joins me now to talk about it.
Irvox, welcome back to Daily Drive.
Hi Jake, thanks for having me back.
Of course.
So the article that you wrote is titled, Why the QX-65 is Infiniti's most important model
of 2026.
So why is that, Irvox?
Yeah, so the QX-65 fits into the sweet spot of the market, which is mid-sized crossovers.
It's a two-row mid-sized crossover that complements Infiniti's three-row mid-sized QX-60.
So it's kind of a high-volume model.
It's expected to be the number two seller for the brand after the QX-60.
The difference between the QX-65 and the QX-60 is essentially the third row.
So it's kind of aimed at empty nesters, either the younger age range or the older age range
that basically need all the capability and sportiness and luxury of a mid-sized QX-60,
but they don't need that extra row of seats.
So the vehicle basically started arriving in stores in May towards the end of May.
So June was the first full month.
And essentially they've sold a little over a thousand units in June.
I believe it's like 1,019 units, and they were expecting about 800 units.
So it's a 25% increase over what they had targeted.
By fall, they expect to be selling about 1,500 to 1,800 QX-60s monthly.
So they definitely are seeing significant traction for this model.
Part of the excitement, obviously it's a new model, but part of the excitement is also
because Infinity just has two other models.
So it's not like this is a new model to a 12 model lineup.
So there's very little to pick from.
So every addition is interesting and exciting for Infinity loyalists.
And then the momentum is expected to sort of continue or build into 2027,
when Infinity will bring a more popular V6 option to the QX-60 next summer.
And obviously 41%, according to Edmunds,
41% of luxury midsize crossovers are basically V6s.
So Infinity can expect or hope to expect the QX-65 to continue to be
an important part of the lineup until additional models come.
So starting in, I believe, 2028, or actually next year,
they're going to get a Q50 sedan.
And then that'll be followed by three crossovers,
which will be based on the Nissan platforms.
So really, the QX-65 is sort of at the vanguard of a significant update
or increase in Infinity's lineup, which will go from two models
at the start of this year to seven by the end of the decade.
Is this the shot in the arm that Infinity needs as a brand?
Yeah, I mean, absolutely.
Infinity has had declining sales for several years, at least post pandemic.
It's got some traction in recent years, but it's the year over year sales
are still struggling.
Again, part of the problem is that the lineup has shrunk.
Last year alone, they lost, I believe, two or three models,
the QX-50, the QX-55 crossovers due to tariffs they were built in in Mexico.
So the lineup has shrunk, which means the dealers have less throughput.
Dealer profitability is still half of what it was last year,
the first half of this year versus first half of last year.
The dealership profitability is half.
So both the brand, as well as its dealers, need the new product
and sort of the pricing support that that brings.
Irvaksha Karkarya joining us from Atlanta,
really appreciated Irvaksha and excited to see where the story goes.
Thanks again. Have a good weekend.
Coming up, Cox Automotive's Erin Keating talks about why she says
the affordability story is more complicated than the headline suggests,
and what dealers should be doing about it right now.
That's next on Daily Drive.
Grid demand today is unprecedented.
And this week on Shift, we're digging into how GM Energy is building
new technology to meet that demand.
GM Energy Chief Revenue Officer Asim Kapoor talks about the technology
the General Motors subsidiary is piloting to improve grid stability.
In the future, the energy companies would be able to draw up energy
from or power from the batteries to be able to balance the grid.
And that can be very significant in terms of improving grid stability
and reliability going forward.
Kapoor also talks about GM Energy's partnership with Redwood
and how EV battery recycling can help make battery materials more sustainable.
Join us for Shift, available this Sunday, wherever you get your podcasts.
Welcome back to Daily Drive.
I'm Jake Neer.
Erin Keating is an executive analyst at Cox Automotive, who focuses
on consumer behavior, dealership economics and market trends.
She sat down with automotive news senior retail editor Dan Shine
at Cox Automotive's mid-year report event to talk about why the sticker
shock on new vehicles isn't the whole story, how safety ratings
became a stealth driver of vehicle prices and why fixed operations
may be the most under-leveraged profit engine at dealerships today.
Talked a little bit about affordability.
You were kind of puncturing the holes.
Everybody thinks that cars are too expensive.
But you say not so fast.
Yeah, not so fast.
I mean, look, we know that the average transaction price puts a little bit
of a sticker shock, a little bit of a sting in everyone's mouth.
You know, when they hear that price, $50,000.
But what I explained in the review is that the car's not necessary to blame.
I mean, surprisingly enough, the car has, in fact, gotten so much
better for us over 10 years and only was under a $500 differential
from what it would be, CPI adjusted inflation over 10 years.
So bravo to the automakers for giving us better cars, safer cars
and actually keeping pace with inflation.
Pretty interesting.
You also talked about kind of the impact of the IIHS and how it's
really shaped the vehicles that we drive to explain more about that.
Yeah, it's interesting.
You know, I actually did a panel with the DOT and NHTSA back a couple
of months ago out in Toronto and sat on the stage with Mazda and GM.
And it really got me thinking because, of course, I had to talk
about affordability in the framing of safety and such.
And when I was doing my research, I thought, well, what's really mandated?
And there's so few, so little of the technology is currently on a car
that's actually federally mandated for homologation in the US, where the
attention should really be sort of focused is the Institute for Insurance
Institute for Highway Safety, because they have so long been trusted as the
place to go to find out, is your car reliable?
Is it safe?
Should you be looking at other brands because they have a higher rating, etc., etc.
And that has ingrained that thought process for consumers, where they
continue to say to themselves, well, wait a minute, I want a reliable car.
I want it to be really safe.
What features did they say?
Again, we're on those cars.
Okay, fine.
And now that's become their customer expectation.
Whereas who would sell an understated vehicle?
It's a marketing opportunity.
It's absolutely a marketing opportunity.
And insurance companies have obviously paid attention and they adjust their
rates based on what technology you have on your car.
Automakers hear that.
Why wouldn't they design, you know, to get to that top safety rating?
Because it's now really important.
So it makes sense that all of these additional features that aren't mandated
by law become customer expectations.
And guess what they come with?
A price tag to build them into the vehicles.
You know, you also talked about some of the add-ons that consumers want
in their vehicle.
I was driving out here just now and the press vehicle that I'm driving did not
have Apple CarPlay, which is...
We won't mention names, right?
No, but it was something like, okay, this guy, I'm going to speak a little bit
to the consumers and what they are looking for from their vehicles.
What about like an Apple CarPlay?
Right, or a stolen vehicle alerts, you know, passenger lean, passenger
assist programs within the vehicle, lean assist programs, et cetera, et cetera.
So we saw just this enormous propensity for customers to want all of this added
technology.
And yet when we said, well, hey, if we could line out on those for you and you
could pick which ones you want, how much would you be willing to pay for it?
And hands down each category, you showed this cliff that they fell off of who was
willing to actually pay for that benefit, even though they expected it to be standard.
Yeah, it brought up an interesting which I thought of as well.
Are subscriptions a possibility?
You don't want lane deviation?
Okay, I'll put it, I'll pay an extra whatever for that.
I want Apple CarPlay, yes.
I'll pay, I'll pay whatever for that.
Is that something that we may see down the road from automakers?
You know, I think this is where automakers really, people don't understand
the conundrum they get inside of, right?
Because you'll have plenty of consumers who will say, no, really, give it to me.
Give me the optionality and let me decide what I want to buy.
And they guarantee that person walks out of the dealership going, dang,
didn't I just order 10 extra things on my computer, you know, car?
And boy, did they get me, you know?
And yet, if you would probably compare that back to what would it have cost?
If you had just let it be packaged into the original vehicle, you probably
would have paid less, right?
But, you know, so the question would be, are people's subscription fatigued?
Are they wanting the optionality?
But, you know, customers want a lot, do a lot differently.
So some of the automakers may go into experimentation, especially around
packaging of different technologies.
You know, there was seat warmers and things like that, which came into play,
you know, power options and things like that.
I think when it comes to the safety and the advanced technology, they're probably
still going to struggle getting that customer to wrap their head around.
How much would it pay?
Now, if they offer the subscription, maybe upfront, you know, hey, you can pay it
for three years in a row, perhaps that will help them.
Although we saw Tesla just go backwards on that.
So it will be an interesting experiment.
Some manufacturers have said that they want to look into it.
How many actually come to market with that after doing some testing with
customer focus groups remains to be seen.
Getting back to affordability a little bit.
Another myth, there is no such thing as an affordable car.
New car, at least, nice.
But you say, again, not so fast.
Not so fast.
We talked about the Hyundai Venue.
Like this is cheapest vehicle in America right now at around $22,000.
And when we rewind that back to 2016 numbers, it turns out to be just under $16,000.
So, yeah, we might have gone away with some of the sedans, but we've turned people
over to compact SUVs, subcompact SUVs.
And so when we just put things in perspective and look at what normal inflation
would have taken us to this point, we do still have the floor of vehicles
that are available at less expensive prices.
They just seem more expensive because honestly, people only go back to buy a new
car of eight to five years.
What is that differential feel different?
They're not sitting there going, this is how much more I'm making five years later
too, right?
You know, what consumer wants to admit that differential for you.
Right.
Rash, you know, the mind who will speak what the mind wants to think.
Now, we're talking about car payments.
And again, car payments, if you get adjusted for inflation, haven't really
changed much over the years.
What has is interest rates.
Interest rates.
That's the killer.
How do they impact?
And we just have the Fed keep rates steady and there's talk about maybe raising rates.
Right.
How does, how big a role does that play in what
people pay for further car?
Well, I mean, remember with the Fed fund rate, that doesn't necessarily lead us
quickly to what automotive rates will do because they do function more as a matter
of how they fund their, their loans.
However, rates have played a significant impact.
I mean, they've gone from say an average of six and a half percent to nine and a
half percent that adds a tremendous amount of load onto the actual monthly payment.
And, you know, one of the things I recently looked at is we've seen loan terms
over 72 months at an all time high, 30% of them.
So imagine the consumers seeing they're looking and they say, okay, if I do a
regular 48 month, I could get the car for, I don't know, called $1,000 a month and I'd
only pay, call it $8,000 over the term of the lease or the loan in interest.
They're willing to go all the way up to say $13,000 extra in interest rates, just
to get their monthly payment down to 700.
So the consumer is actually taking on added expense just to get those monthly
payments down and that added expense is coming from interest.
And that's a, that's the real driver.
So for dealers, what's the, what's the lesson for them when it's about affordability?
I mean, it seems like you can make that argument like, that they could make an
argument to consumers.
Cars haven't really gone up as much as you think they have.
What can dealers do to kind of combat this feeling of affordability problems?
Sure.
I mean, I think, first of all, definitely take a look at your financing options.
Make sure that you have a really good, strong portfolio of financing options for
meeting your customers where they are.
So that's a natural thing that they can at least control.
Secondly, when you're looking at advertising and marketing, you know,
really looking into maybe bringing that message forward, hey, look, the car you
got 10 years ago, look at what it's now, you know, really talking about the value
of the increase and how much better that car is today.
Really talking about what have some of the advances been and why has that
contributed to the cost of the vehicle?
Maybe even using our data to show, look, hey, it really hasn't gone much higher
over the course of the time, considering what you're getting right now, right?
You know, and, you know, always if you have that broad appeal to the market,
if you have brands like the Hyundai's, the Toyotas, the Hondas who really
stretch their portfolio across all segments, put them in the right car that
gets them the way they want to go, you know, ask them, do they really need that
third row, right?
Ask them if they really need the height, you know, these things can matter.
You know, I spoke earlier with Chief Economist Jeremy Robb and we talked
about, you know, sales and new vehicle sales, you know, being kind of where
they are and this K-shaped economy where there's just a lot of people left out
of the marketplace who are hanging onto their vehicles, which leaves me, I
always want to talk service parts with you or never possible.
We've seen the added importance of the role of how fixed operations add a
first half of this year and the importance that playing in the revenue
health of the dealership.
I mean, hands down, it's been one of the most discussed topics of the year.
You know, if affordability is pretty high up there, I think fixed ops is the
next thing that everyone's hearing is a frequent word in our industry and
dealers are later focused on it.
Not only because they know it's a profit engine, but because they know
they've been leaking those customers to the independent shops over the years.
They've just been handing that business away by not paying attention to how
to connect sales to service, how to, you know, feed that virtuous cycle,
getting vehicles in and figuring out how do we be more transparent in the
repair and maintenance process?
How do we think more clearly about communicating pricing, length of time,
getting people in immediately?
And then how do we think about using that client as a potential trade-in?
How do we get them introduced to sales?
And so, I mean, but the interesting flywheel that service can really behave
as shocks me maybe that hasn't been leveraged more often in dealership
business, especially at a time like this to your point where we have cars that
are significantly older and some of those folks may have been feeling, you
know, trepidation about coming back into the market because of all these volatile
spikes in news headlines and such.
Well, we've now kind of flattened out on the headlines, right?
I mean, they're coming still every day.
But if we look at the prices and the information it's giving us, it's giving
us that cars really are going up and down that much.
Go ahead and get in.
Right? You've been hanging on to that car for 10 years.
Let us help you service it, maintain it.
But then also, if you're ready for the trade-in, let's offer the trade-in values.
Let's pay close attention to how much you're going to pay for that repair.
And then they can flip that car into a used car, which they desperately need as well.
Yeah. And also, I think that with fixed ops is there may be more, I guess,
I guess we've written a lot and automotive news about you talk about losing
losing the quick loop of business.
You know, their independence are taking away their business.
And the thing is, again, getting back to $40 billion price.
It's always a consumerist.
The number one thing is price.
How do dealers combat that?
And you talk a little bit about transparency.
I don't know if it's menu pricing or maybe say we might be a little more
expensive than the amount of a pop shot down the street.
But here's what you get for your maybe extra hundred bucks on the repair.
Well, I would say first and foremost, double check your math.
Are you more expensive?
Because a lot of the times that's customer perceptions, not necessarily
reality. So have someone who is focused on doing market research where you are
and in your your area through service and figure out where are you possibly
more expensive, maybe even sometimes less expensive, depending, and then put that
forward, you know, make some changes and adjustments either on your marketing
materials and how you talk about service pricing, or how transparent you are
when the customer comes in and or adjust pricing where it makes sense
because it's business that you just shouldn't be losing, right?
So, I mean, I think market intelligence there becomes really, really important.
But then furthermore to your point, play up the value of coming back to the
to the manufacturer's dealership, right, especially with all the modern cars,
with all the sensors, configurations that are needed.
I mean, these are the folks that have the technicians that have been fully
trained, the tooling to actually address those vehicles and so forth.
So I think that there's a lot of sort of, you know, just ABCs of what they can
be doing to increase, you know, transparency with the customer and
leveraging all the digital tools that are available to them today.
Now, one final question and kind of maybe jump in my head when you were talking
and that's right to repair.
You know, it's been around for a while.
Just kind of made it into the Oval Office and there was some discussion
there about it.
Now, there seems to be good support.
There always seems to be support, but it never seems to go anywhere.
Is this a big deal to should dealers care about this or manufacturers care
about whether this gets passed or not gets passed?
So, I mean, I'm not a policy expert, so I'm not going to weigh too deeply into.
But if I anecdotally talked about it, I think the issue that that's at heart,
even though I know Trump made that comment, well, it looks like you guys
just don't want people to repair their vehicles.
I don't think that's the case.
I think that there's real important discussions being had around privacy,
around data.
I mean, we just have to acknowledge we have cars that are more and more
software-divined, which are collecting more and more analytics and data.
And that's incredibly important in consumer should care that it's incredibly
important that we maintain at least responsibility and the vision into how
that data is being leveraged in you.
So I do think that that's a rightful aim for them to be thinking about
as they're evaluating.
Do we want to let the data out freely?
Now, granted, some people would say you could solve that with contracts or,
you know, this, that and the other thing, and maybe they will.
But ultimately, I think that's really at the base of it.
I wish I would be a little bit more of the focus of it rather than saying
that people just don't want people to repair their cars.
Is there some underlying competitive nature of franchise dealerships
wanting to keep that business?
Sure.
But underlying, we should all be concerned about what's happening with
the massive amount of data that is being collected by our car.
Erin, always great to talk with you.
Thanks for your time.
Of course.
Thank you.
Cox Automotive executive analyst, Erin Keating, spoke with our own Dan Shine.
That's daily drive for today.
I'm Jake Neir.
Thanks to our own Irvaksha Karkaria for his reporting for today's podcast.
You can get the latest news on Volkswagen's restructuring, Infiniti's
product comeback and everything happening in the auto industry at AutoNews.com.
Come back over the weekend for our weekend drive edition of the show.
Our own Larry Veliquette and Michael Martinez discussed the biggest news
from the past week, including Toyota's Texas size plant investment.
We are getting more US productions, 2000 jobs for that complex down there
that it's going to now be among the largest plants in North America.
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About this episode
Volkswagen’s plan to cut its model lineup by up to half and reduce production capacity highlights mounting pressure from China competition, tariffs, and high costs. Toyota’s shift of production from Mexico to Texas adds uncertainty to Mexico’s auto sector, while NHTSA signals it may drop steering-wheel requirements for driverless cars—potentially easing the path for robotaxis. Infiniti’s QX-65 gets attention as a key mid-size, two-row “empty-nesters” play. Cox Automotive’s Erin Keating argues affordability is more nuanced: cars have improved near inflation, while safety ratings and customer expectations for tech drive pricing—and dealers may be underestimating profit from fixed operations.
Cox Automotive Executive Analyst Erin Keating pushes back on the conventional wisdom that new cars are unaffordable and makes the case for why fixed operations may be the most underutilized profit engine at dealerships right now. Volkswagen Group is planning to slash its 150-model lineup by up to half. Plus, a look at why the Infiniti QX65 might be the brand’s most important model in 2026.