March 13, 2026 | EV registrations plunge 41%; Stellantis dealer upbeat on new products

Welcome to Daily Drive for Friday, March 13th, 2026.

I'm Kellan Walker in Las Vegas.

Today on the show, EV registrations tumble 41% in January.

The auto industry's EV retreat bill hits $70 billion, and the Trump administration sues

California over EV mandates.

Plus, our own Dan Shine visits Healthman River Oaks CDJR in Houston, where sales manager

Blake Healthman is excited about Stellantis' product refresh.

Jeep, as you think, is the premier leader in the SUV market space, and to not have a

car in that class has been tough over the last few years.

So now we're back in that mid $30,000 price point range, where I think some of our competitors

have been very successful.

Let's run through all the news you need to know to keep up with the auto industry.

EV registrations dropped 41% in January compared to a year earlier.

That's according to S&P Global Mobility.

Electric vehicles now make up just over 5% of the market, down from more than 8% last

January.

Gas-powered cars picked up more than two points of market share.

Hybrids gained about a point.

Tom Libby at S&P Global Mobility calls it a reset after Congress repealed the federal

EV tax credit last year.

He says it's going to be a slow climb back.

We'll have more on this story in a minute with our own Lawrence Eyelift.

It looks like Honda will pull the plug on the Prolog EV.

It's only battery electric vehicle in the US, when production ends in December.

According to industry forecaster Auto Forkast Solutions, the automaker won't build a second

generation of the GM-built crossover.

The move caps a dramatic retreat.

Prolog sales crashed 74% this year after the Trump administration eliminated the federal

tax credit.

Honda slashed production in half and now expects to sell just 17,900 units.

Honda is also cancelling three upcoming US-built EVs.

The company blamed weak demand, tariffs, and profitability challenges, pivoting instead

to hybrids.

The bill for the auto industry's EV retreat is approaching $70 billion.

Honda is adding nearly $16 billion to that tally with this week's cancellations.

Add to that right downs from GM, Ford, and Stellantis, and the sum is pretty staggering.

Just two months ago, the industry's restructuring cost stood at $50 billion.

That included $26 billion for Stellantis and $21 billion for Ford alone.

What's notable here?

These aren't just cancelled vehicle programs, the losses span EV factory capacity, battery

manufacturing, and years of development work that's now being written off.

Analysts say automakers will keep investing in EVs and batteries partly to reduced costs,

but mostly hedging against regulatory whiplash under a future administration.

And meanwhile, the Trump administration is suing California over the state's electric

vehicle mandates, saying they violate federal law.

Here's the thing, Congress already killed California's plan to ban gas cars by 2035,

but the state still has earlier rules on the books that require automakers to sell more and

more EVs each year.

The Trump administration wants those gone too, arguing automakers should only have to meet

one set of federal standards, not California's stricter requirements.

And those are today's headlines.

You can read more about all these stories at AutoNews.com.

Joining me now to talk more about the story about cratering EV registrations in January

is automotive news reporter Lawrence Eiliff.

Lonnie, welcome back to Daily Drive, sir.

Hey man, it's great to be here as always.

So Lonnie, this data is from January before the conflict in Iran and other developments

that could affect the EV market.

What should we make of this big drop and are things likely to turn around?

Okay, so January is a continuation of what happened last year.

The tax credit that goes back to 2009 was repealed in July.

Then it went away in September 30th.

And then we've seen every single month they've gone down and down and down.

Now January, they fell 41%.

That's a big number.

And basically what's happening is kind of a structural thing.

Things are, big things are changing in the auto industry.

And that is that you lose that credit, which was driving sales.

And then the administration also got rid of penalties for fuel economy rules.

So the carrot of buying EVs is gone.

And the stick forcing automakers to buy them is also gone.

So with gas prices going up and everything, I can see California where EVs are very mainstream.

It's just another choice, right?

And it could be, oh yeah, that looks interesting.

But I think most of the country is going to go to hybrid.

That's what our numbers show is that that's kind of gaining.

It's easier for people to say, oh, gas is going up.

But my next car, maybe I'll get a hybrid and I'll get 30% or 40% better gas mileage.

And I think it's going to be a bigger leap going to an EV because of just what I said.

The incentives to buy an EV, both on the consumer side and on the automaker side,

that has to sell them and promote them and give you money to drive them off the lot is gone.

What are the big takeaways from specific brands EV sales?

Yeah, it's very interesting because now we're seeing a pattern in January.

It's a very interesting month in that EV makers like Tesla, right?

That's the big EV maker.

Everybody associates EVs with them.

They were down 26% versus 41% for all EVs.

And then the Model Y was only down about 5%.

So it shows you that there's still a very core EV market, right?

And they like Tesla's.

Tesla's market share has gone up 10 points, right?

Because people are gravitating to them.

And some of these other brands are kind of giving up, right?

We just saw Honda cancel three EVs, but even the one EV that they have is cratering.

And so you really see kind of the strong EV players, you know, Tesla, Rivian, Lucid,

kind of fighting it out there in the market.

Cadillacs in there too, because they have a bunch of models and they have some commitment.

And some of the other ones that are less committed are just kind of given up.

And their numbers are down like 80%.

Wow. Good stuff, Lonnie.

Thank you so much for joining me, sir.

Thank you very much.

Coming up, Blake Healthman, sales manager at Healthman River Oaks CDJR in Houston,

talks about the excitement around Stellantis' product refresh

and how the dealership is using artificial intelligence to improve operations.

That's next on Daily Drive.

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Welcome back to Daily Drive.

I'm Kellan Walker.

Stellantis dealers are seeing a wave of new product after years of limited refreshes.

From the V8-powered Ram trucks to the two and four-door Dodge Charger,

the all-new Jeep Cherokee, and a refreshed Pacifica.

The brand is betting on new metal to gain market share.

Automotive News senior retail editor Dan Shine recently visited Healthman River Oaks CDJR in

Houston, where sales manager Blake Healthman talked about the product pipeline,

how the dealership is using AI to mine service customer data,

and his thoughts on Chinese automakers potentially entering the U.S. market.

Blake, thanks so much for joining me on the Daily Drive.

Awesome. I'm happy to be here.

So thanks for having us here at your dealership.

It's a great place, a great busy service base going on there.

I want to talk, we just kind of before I push record here,

we talked a little bit about this new Texas DMV legislation about registration requirements

down in the state of Texas.

What are your thoughts on that and how it might impact your sales and business here?

Yeah, no, I mean, definitely could impact us.

We're in the early stages of this taking place.

We're hopeful that there is a common ground that's coming together.

Every day, our TADA is releasing emails and guidance on the situation.

We're hoping that they'll come up with more solutions so that more people are able to

purchase a vehicle, re-register a vehicle, because it could present a hurdle down the road

for selling and re-registering vehicles.

So 2026, at least for new vehicle sales, looks down a little bit than in the past.

What's your outlook on business for 2026?

What are you kind of bracing for?

Well, we're super excited.

At the Stellantis brand, we've got a lot of new changes coming to the front.

We just came back from NADA a few weeks back and the manufacturer released quite a few new

vehicles and is going to release quite a few new nameplates to us, which is super exciting.

Haven't had a lot of, I guess, refresh product over the last couple years,

especially we were headed down a path of electrification.

Now we've pivoted back and we've come out with the V8 trucks.

We're coming out with performance trucks.

Dodge is back with the two and four-door charger, which is super excited.

We now have a refresh Pacifica coming that we're now able to order.

Ram announced yesterday the ProCities coming back.

And then on the Jeep brand, we have an all-new Grand Cherokee that hit,

an all-new Grand Wagoneer that hit.

We're going to be seeing a refresh Gladiator and Wrangler over the next two years,

which is exciting.

The Jeep Cherokee is back, so super, super excited about that segment.

Jeep, as you think, is the premier leader in the SUV market space.

And to not have a car in that class has been tough over the last few years.

So now we're back in that mid $30,000 price point range, where I think some of our competitors

have been very successful.

The Compass is redesigned and back.

It's got a lot of new, really good things going our way for 2026 that we're super excited about.

And new leadership as well.

New leadership as well, yes.

Antonia Flos has done a great job at the helm, just in a short time,

but made a ton of changes.

A lot on the product side that we hope are going to drive incremental growth over the next year.

And we've already seen quite a bit of it.

And we've got a lot of incentives that just hit even two over the last few weeks.

So the brand is definitely committed to gaining market share,

and they're doing so through product and current incentives.

For consumers out there, I think affordability has been kind of the buzzword that we hear a lot

about.

We've heard a lot about at NADA.

How do you combat that for those folks who have been on the sidelines?

I think the sticker price may be a little bit too high.

Incentives have not been there much in 2025.

Interest rates have moved, but not greatly, but a little bit.

How do you get folks in the door here and convince them that they need to buy new?

Absolutely, yes.

So we're fortunate in our brands, at least recently, the prices have come down.

We've had a lot of MSRP adjustments over the last six months to a year,

which has really helped on the Jeep side.

On the Ram side in particular, just yesterday, they announced 84 months at 4.9%.

And no payments for 90 days.

So I mean, two really significant incentives that help the consumer out from an interest rate

perspective, and then also a delayed payment perspective as well.

And in addition to that, they're also offering rebates on top of that.

So I think the factory recognizes that they need to step in and help as well,

and they've done so, which has been super exciting.

So we've got Ram Truck Month going on right now.

So all these three combination of incentives should really help to drive truck sales and affordability.

Okay. One other thing we heard a lot when you were at NADA as well, AI, artificial intelligence,

and how it might fit into dealership operations.

For you guys, how have you kind of approached this?

Are you deep into it?

Are you not so much?

What is your kind of thinking on artificial intelligence,

and how it might help you in the everyday business here?

Yeah, it's huge.

You know, Mike, actually our service director, and I talk about it every day.

And then along with the sales guys, we're sitting on so much data as a dealership.

And how to take that data and convert that is the big challenge.

So whether it be something like software updates and recalls in the service department,

and how to reach out to those customers in a timely fashion at a very high speed,

we're working on that.

Try to be more proactive on that front in the service department.

So we're working with a lot of AI companies to try to get customers in quicker, follow up with them better.

And then communication as well.

We have a texting platform that we implemented in the service department.

One of our biggest complaints was a way to communicate to and from our customers.

And so now that we've opened up a text line of communication that our BDC manages,

it's been really smooth in the communication front there.

Artificial intelligence, we do a lot of equity mining in the sales department,

finding people that are using our service department,

entering a good position in their vehicle,

and then trying to reach out to those customers from a sales perspective.

That's been huge in the artificial intelligence space.

And then the little things, we try to reach out to everybody via text messages

to offer them a trade-in value on their car that come into service.

So that's been, we'll work with a few companies on that route.

Yeah. I mean, it's hitting us daily with new changes.

So for us, it's great.

You know, it's new opportunities for us that we can take advantage of in the dealership space.

And it's an opportunity for us to become more efficient as well.

In regards to staffing and retention, turnover, it can be an issue at dealerships.

How are you as far as staffing goes and retention?

And if you're doing well, how are you keeping folks here?

You know, I think the big thing is our ownership is private.

So my grandpa started our dealership group in the early 50s.

And my dad is now the president of our auto group.

And we have family members that run each location and have been there for a long time.

And I think when you have leadership that's been in the same place,

you're able to keep a lot of the same people.

And I think that truly is what drives retention inside a dealership.

We have a lot of turnover.

It's difficult to keep the same people.

So I think, you know, I think strong leadership at the top.

And I think consistent leadership as well,

when you don't have a lot of turnover, that helps.

And finally, I want to maybe talk a little bit about Chinese vehicles.

They're going to be in Canada, they're going to be in Mexico,

they're going to, you know, have the U.S. be surrounded a little bit.

What is your view on China vehicles either coming into this market

and whether you see that as a potential threat?

Was it something that maybe you would want if an opportunity came up

that you could sell Chinese vehicles?

Yeah, you know, I mean, we're in the business, obviously, of selling cars.

And, you know, our brands have shifted ownership over time,

whether it be, you know, the United States owning us,

or the Italians owning us, or the French owning us.

And so we've kind of moved, you know,

with respect to the Chinese coming into the market, you know,

obviously that's a political decision and not in our wheelhouse necessarily.

But, you know, I think, you know, hopefully our manufacturers

are watching what they're doing, their technology, their quality,

and trying to compete with them, you know, at least for right now.

You know, it seems like everything I see,

they make really good looking vehicles.

But, you know, is that what our market wants?

You know, I don't know.

You know, I think that, you know, the majority of our customers

want affordable vehicles.

So I think that's the biggest thing.

And is affordability through electrical vehicles,

or is it through gas and hybrid?

You know, right now it seems to be that hybrid and gas vehicles

are a lot more affordable than an electric vehicle,

especially that the government's not subsidizing a lot of that price and payment.

You know, I hope that, you know, the manufacturers that we have franchises with

will continue to watch what they're doing.

And not just them, I mean, there's a lot of other,

you know, I know a lot to be said about the Chinese,

but there's a lot of other automakers in countries

that are very competitive in that space.

And, you know, our brands are competing with them right now,

head on in a lot of markets in foreign countries.

You know, that's the benefit of being with Stellantis,

is that right now they're competing against these Chinese,

you know, whether it's in Europe or in Asia or in South or Central America.

I mean, we're already going head to head with these guys.

And Ford as well, we have a Ford store also.

So I know that, you know, they're watching them closely.

Yeah. Blake, really appreciate your time.

Yes, of course. Absolutely.

Thank you.

Thank you so much.

Talk about the biggest stories from the past week,

including the staggering $70 billion bill for the industry's EV reset.

I think it's a sign really of just this broader reset that's ongoing

and everyone sort of taking this view of how much space

and how much capacity do we really need right now.

We'd love to hear from you.

Let us know what you think of the show and the topics we cover today.

Send us an email at dailydrive at autonews.com

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March 13, 2026 | EV registrations plunge 41%; Stellantis dealer upbeat on new products

About this episode

EV registrations

EV mandates

Stellantis

SUV market

Jeep

federal EV tax credit

Honda Prolog EV

federal tax credit

EV factory capacity

battery manufacturing

regulatory whiplash

California electric vehicle mandates

federal standards

fuel economy rules

hybrid

gas mileage

EV

EV incentives

Tesla Model Y

EV market share

Rivian

Lucid

Cadillac

product refresh

artificial intelligence

service customer data

Chinese automakers entering the U.S. market

NADA

nameplates

electrification

interest rates

84 months at 4.9%

no payments for 90 days

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