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Mercedes-Benz & Nissan Just Put the Auto Industry on ALERT | Episode 1010

Mercedes-Benz & Nissan Just Put the Auto Industry on ALERT | Episode 1010

CarEdge Live Feb 12, 2026 26 min
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About this episode

Nissan and Mercedes-Benz are facing significant challenges, with Nissan announcing major job cuts and a 44% profit decline, while Mercedes-Benz has seen its earnings cut in half. Both companies are grappling with oversupply and rising tariff costs, leading to concerns about their ability to increase sales amid a contracting market. The discussion touches on the broader implications for the automotive industry, including potential consolidation and the unsustainable nature of current dealer inventories. Insights into dealer operations and the impact of global market trends provide a comprehensive view of the current automotive landscape.

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Technical Too Afraid to Ask
Brand

Nissan

"Now, the big news this morning, Dad, Nissan and Mercedes-Benz, and quite frankly, the Chinese auto market."

Nissan is a car company from Japan that makes many types of vehicles, including popular models like the Altima and Rogue.

Brand

Mercedes-Benz

"Now, the big news this morning, Dad, Nissan and Mercedes-Benz, and quite frankly, the Chinese auto market."

Mercedes-Benz is a well-known luxury car brand from Germany that makes high-end cars and SUVs, like the C-Class and GLE.

Brand

Volvo

"And another one is Volvo. Volvo had a terrible January,"

Volvo is a car brand from Sweden that is famous for making safe and reliable vehicles, like cars and SUVs.

Concept

global reduction in force

"...this is leading to a 20,000 person global riff reduction in force, and that their profit fell in their most recent quarter..."

A global reduction in force means that a company is laying off a lot of workers all over the world to save money. This usually happens when the company is not making enough profit.

Term

MSRP

"And there's a great article, I guess I will show this screen again. We'll pull it back up over here on Car Dealership Guy News. Automakers are resisting wide-scale MSRP increases despite"

MSRP means the price that the car maker suggests dealers sell the car for. It's like a starting point for how much you might pay for a new car.

Concept

EVs

"...I want to look at a Mercedes-Benz. So many EVs in my life..."

EVs stands 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.

Car

Sprinter van

"...Okay. These are Sprinter vans. They're not cheap though. It's very clear here. They're not cheap...."

The Sprinter van is a large vehicle made by Mercedes-Benz, often used for businesses to transport goods or people. It's known for being roomy and practical.

Car

Mercedes-Benz CLE

"I mean, this is expensive for a dealership or sitting on this Mercedes-Benz CLE for 293 days"

The Mercedes-Benz CLE is a luxury car designed for comfort and style, perfect for those who want a high-quality vehicle.

Term

OEM

"This feels untenable at the OEM level. It also feels untenable at the dealership level."

OEM means the original company that makes the car or its parts, like Mercedes-Benz for their vehicles.

Term

inventory

"How long can I just sit on $60,000 plus pieces of inventory, $80,000 plus pieces of it?"

Inventory means the cars and parts that a dealership has on hand to sell to customers.

Term

profit

"it is negatively impacting their profit."

Profit is the money a business makes after paying all its costs. It's important for dealerships to make a profit to keep running.

Brand

Stellantis

"...all of these companies, Volvo, Nissan, Mercedes, Stalantis, there's only so long they can eat the added expenses before they say,..."

Stellantis is a large car company that was created by merging two other companies. It owns many different car brands, including Jeep and Dodge, and aims to make cars that are better for the environment.

Concept

floor plan costs

"How long can a dealer hold on to all these vehicles and eat the floor plan costs?"

Floor plan costs are the fees that car dealerships pay to borrow money to buy the cars they sell. They have to pay interest on this money until the cars are sold.

Concept

incentives

"...increased incentives to customers, but at a certain point, even Mercedes of North Scottsdale is going to go to their factory rep and say, we can't keep going down this road..."

Incentives are discounts or special offers that car dealers or manufacturers give to help sell cars. They can make buying a car cheaper or more appealing.

Term

floor plan cost estimator

"...What if we added to the vehicle detail pages a floor plan cost estimator? No, I'm serious. As a user, you can see the estimated cost that this dealer has had in floor plan for holding onto this vehicle..."

A floor plan cost estimator helps car dealerships figure out how much money they spend to keep cars on their lot. This can help them decide how to price the cars they sell.

Term

recalls

"So here's what's interesting. So Ford is off to the races and was leading the league. Compared to history, yeah. Leading the league in recalls."

A recall happens when a car company asks people to bring their cars back to fix a problem that could be dangerous. It's a way to keep drivers safe.

Brand

Ford

"So Ford is off to the races and was leading the league. Compared to history, yeah. Leading the league in recalls."

Ford is a well-known car company that makes many types of vehicles, including trucks and sports cars. They have been in business for a long time and are famous for models like the Ford F-150 truck.

Term

initial vehicle quality

"...to explain this, it was due to improved initial vehicle quality, which is measured during the first 90 days of ownership..."

Initial vehicle quality is how well a new car works in the first few months after someone buys it. It looks at any problems that new owners might have.

Brand

Hyundai

"...almost double as many as the next automaker, which is Hyundai, who have four, so I want to be clear."

Hyundai is a car company from South Korea that makes many different kinds of cars and is known for offering good warranties and value for money.

Term

transparency

"...who keeps calling for transparency when it comes to how these websites, these third party websites allow dealers to advertise pricing."

Transparency means being open and honest about things like car prices and safety issues. It helps customers know what they are getting when they buy a car.

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