A deep dive into the automotive landscape reveals significant developments, including the Dutch government's takeover of Nexperia due to fears of its dismantling, impacting chip supply chains. Volkswagen is forging ahead with a $7 billion battery plant in Canada, aiming to become a major player in EV production despite rising tariffs. CEO Jay Vijayan of Techion discusses the company's rapid growth and competition in dealership technology, emphasizing their focus on profitability and data freedom. The episode highlights the evolving dynamics of the automotive industry amidst geopolitical tensions and technological advancements.
Tekion CEO Jay Vijayan joins the show to talk about his dealership management system provider’s growth ambitions, as well as incoming competition in the U.S. market. A new report says the Dutch government took over Nexperia over fears it was being gutted. Volkswagen Group shrugs off tariffs and starts construction on a $7 billion battery plant in Canada.
"...day, October 28th, 2025. I'm Kellan Walker in Las Vegas. Today on the show, a new report says the Dutch g..."
The Chevrolet Vega is a small car that was made by Chevrolet in the 1970s. It was known for being light and stylish, but many people had problems with it, like rust and engine issues. People talk about it because it was an important part of car history, even if it wasn't the most reliable.
The Chevrolet Vega was a compact car produced by Chevrolet from 1970 to 1977. It was significant for its innovative design and use of lightweight materials, but it also faced criticism for reliability issues and rust problems. The Vega is often discussed in automotive circles for its impact on the compact car market and its role in Chevrolet's history.
"The largest automotive investment in Canadian history is moving ahead, despite rising tariff costs and sluggish EV demand."
Electric vehicles are cars that run on electricity instead of gasoline. They are becoming more popular, but sometimes there are challenges in selling them, like high costs or low demand.
Electric vehicles (EVs) are cars that are powered entirely or partially by electricity instead of traditional gasoline or diesel engines. The demand for EVs is growing, but it can be affected by various factors, including tariffs and market conditions.
"Construction is underway at Volkswagen's $7 billion battery plant in St. Thomas, Ontario. The automaker's PowerCo unit will supply batteries for VW's Scout Motors plant in South Carolina and other North American sites."
Volkswagen is a well-known car company from Germany that makes many different types of vehicles, including electric cars. They are currently building a big battery plant in Canada.
Volkswagen is a major German automotive manufacturer known for producing a wide range of vehicles, including cars and commercial vehicles. The company is also investing heavily in electric vehicle technology and battery production.
"...ker's PowerCo unit will supply batteries for VW's Scout Motors plant in South Carolina and other North Am..."
The International Harvester Scout is an early type of SUV that was made from the 1960s to the 1980s. It was built to be tough and good for off-roading, which made it popular for adventure seekers. People still love talking about it because it helped start the SUV trend.
The International Harvester Scout was one of the first SUVs, produced from 1961 to 1980, and is known for its rugged design and off-road capabilities. It played a significant role in shaping the SUV market and is still celebrated by enthusiasts today. The Scout is often discussed in the context of the revival of classic SUVs and their cultural significance.
"U.S. franchised dealerships saw profits rise in the third quarter, even as margins on new vehicles tightened."
Franchised dealerships are car shops that are allowed to sell cars from certain brands. They also help with repairs and maintenance for those cars.
Franchised dealerships are car dealerships that are authorized to sell vehicles from specific manufacturers. They often have exclusive rights to sell a brand's cars in a certain area and provide services like maintenance and repairs.
"Gross profit per vehicle fell 16% to about $1,800."
Gross profit per vehicle is how much money a car dealership makes on each car after paying for it. It's a way to see how well the dealership is doing financially.
Gross profit per vehicle refers to the amount of money a dealership makes on each car sold after subtracting the cost of acquiring the vehicle. This metric is important for understanding dealership profitability.
"I think everyone's trying to get to the finish line of the renegotiation of the United States-Mexico-Canada agreement."
The United States-Mexico-Canada Agreement is a trade deal between the U.S., Canada, and Mexico that helps businesses trade more easily. It affects car companies by deciding how much they pay in taxes when selling cars across borders.
The United States-Mexico-Canada Agreement (USMCA) is a trade deal that replaced NAFTA, aimed at promoting fair trade and economic growth among the three countries. It impacts various industries, including automotive, by setting rules for tariffs and trade practices.
"So could VW pivot to other industries like energy storage if EV demand doesn't develop?"
EV demand means how many people want to buy electric cars. As more people care about the environment, more are interested in these types of vehicles.
EV demand refers to the growing consumer interest and market need for electric vehicles. As environmental concerns rise and technology improves, more people are looking to buy electric cars, which influences automakers' strategies and investments.
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Welcome to Daily Drive for Tuesday, October 28th, 2025.
I'm Kellan Walker in Las Vegas.
Today on the show, a new report says the Dutch government took over Nexperia over fears it was being gutted.
VW shrugs off tariffs and starts construction on a $7 billion battery plant in Canada.
And dealership profitability jumps in the third quarter.
Plus, Techeon CEO Jay Vajayan joins the show to talk about his DMS provider's growth ambitions as well as incoming competition.
I always, you know, encourage healthy competition.
At the same time, Pinewood is not a shiny new object.
Let's run through all the news you need to know to keep up in the auto industry.
The Dutch government's takeover of chipmaker Nexperia in September came after concerns that the company's former CEO was dismantling its European business.
Sources told Reuters that Zhang Shuizhong planned deep layoffs in Europe and was moving technology and designs from Nexperia's Manchester and Hamburg plants to China.
Shuizhong also leads Nexperia's Chinese parent Wingtech.
Dutch officials say they acted to protect national and economic security as tensions with Beijing escalated.
China responded by blocking Nexperia's exports, fueling chip shortage fears among automakers in Europe, the U.S. and Japan.
Nexperia's Chinese arm has since declared independence, while the Dutch government says it's working toward a reunification deal.
The largest automotive investment in Canadian history is moving ahead, despite rising tariff costs and sluggish EV demand.
Construction is underway at Volkswagen's $7 billion battery plant in St. Thomas, Ontario.
The automaker's PowerCo unit will supply batteries for VW's Scout Motors plant in South Carolina and other North American sites.
CEO Frank Blom calls the project a big milestone toward making VW a global battery powerhouse.
Production is expected to start in 2027.
U.S. franchised dealerships saw profits rise in the third quarter, even as margins on new vehicles tightened.
A report from Presidio Group and NCM Associates shows average net pre-tax profit up 7% year-over-year.
Gross profit per vehicle fell 16% to about $1,800.
Analysts say profitability is normalizing, but still well above pre-pandemic levels.
And those are today's headlines. You can find more details on all those stories at autonews.com.
Joining me now from Windsor, Ontario, to talk more about the massive battery plant that VW is now building in St. Thomas,
is Greg Laysen, the digital and mobile editor for Automotive News Canada and the host of the Automotive News Canada podcast.
Greg, welcome back to Daily Drive.
Thanks for having me back.
So Greg, Volkswagen is pushing ahead despite tariffs and slower EV demand. Is this a risky move?
I think it's a little risky given the current landscape.
But, you know, I sat down with Volkswagen Canada CEO Edgar Estrada about two weeks ago and grilled him on this very topic.
And they are full steam ahead on EVs. This is the future.
This is what Volkswagen believes is the future in auto.
And this factory, they have the footings poured. There's no turning back now.
So whatever that risk may be, Volkswagen doesn't see it.
I mean, you're always up against tariffs. You're always up against uncertainty right now.
I think everyone's trying to get to the finish line of the renegotiation of the United States-Mexico-Canada agreement.
And I think Volkswagen is one of the few automakers, at least north of the border, that's looking beyond the short term.
So they see real value in this. They see real potential in this.
And they believe it will come to fruition and supply batteries to plants across America.
So could VW pivot to other industries like energy storage if EV demand doesn't develop?
That's always been the discussion about other markets, even other automakers.
We know that there's consolidation in the industry. We know that there are partnerships in the industry.
So the belief, I think, in the battery manufacturing sector of the automotive industry is that there are other things we can do with these batteries.
There are other industries that we can supply, because in the end, this is new to everyone.
Everyone in the auto industry, everyone outside the auto industry.
So all of the storage, the power, the generation, there are other markets that these automakers and their subsidiaries can turn to.
Well, Greg, what makes this project so significant?
And not just for VW Group, but for the North American auto industry as a whole.
This plant is massive. That is what makes it significant.
It's sheer size and capacity.
It is the largest Powerco plant in the portfolio, following one in Germany and one in Spain.
On top of that, it can supply batteries to one million EVs annually.
The sheer volume and size of this thing makes it very special for the North American industry.
It can supply EV batteries or energy storage batteries if they go that route at some point,
if that's a possibility to anyone in Canada, the United States, all the way down to Mexico.
And the one thing we've noticed is the sheer landmass that Powerco and VW has acquired in St. Thomas.
There is speculation that it could one day house a assembly plant there as well.
That's not in the plans. We're told it's not in the plans.
But the sheer size of this makes it a very special place, very unique.
It's the single largest monetary investment by an automaker in Canadian history.
So just put that into scope.
We have plants that span, you know, two factories and two plants in some locations here.
This thing is massive and it's here to supply batteries all the way down to South Carolina for the Scout line once it's up and running.
Wow. Greg Lason, thank you so much for joining me.
Anytime.
Coming up, Techeon CEO Jay Vajayan talks about the DMS provider's trajectory,
including whether it plans to go public.
That's next on Daily Drive.
Automotive News Shift podcast brings you the latest on automotive technology, trends and transformation.
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And I'm Molly Boygan.
We're the new co-hosts of Shift.
And we're excited to bring you new conversations with experts and industry insiders,
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I do believe the legacy OEMs are falling into a trap.
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Welcome back to Daily Drive, I'm Kellan Walker.
Techion has shaken up the dealership technology world in just a few short years,
and it's still growing fast.
CEO Jay Vajayan says the company is on track to reach profitability by 2026
and continues to win business from major retailers.
He spoke with Automotive News Retail Reporter Mark Homer about the company's growth,
its path to an IPO, and how he views new competition entering the U.S. market.
I appreciate you joining me.
I wanted to talk to you about how things are going and what's the latest with your company.
And first off, tell me, how many people work for your company now?
We're close to 3,000.
Close to 3,000?
And how many of that is in the U.S. at this point?
I would say close to 1,000.
Okay, and the rest are?
Rest are a combination of India, UK, and Canada.
Okay.
And a little bit in other countries like in Europe itself.
You mentioned some gains about the market and dealership rooftops.
Could you recap that for me?
Yeah, we are growing really, really well.
We haven't shared any numbers publicly, Mark.
So maybe high level, I'll share.
We are somewhere around 1,500-plus dealerships in the DMS Plus platform.
And collectively across all products, I would say maybe 4,000-plus rooftops.
So that means different pieces.
Different pieces installed.
Yeah, not the whole thing, yeah.
Okay.
You mentioned how many dealerships you're adding per month.
Can you give me that ratio?
Yeah, we are adding 60 to 80 a month.
That's impressive.
And but you have a lot of things going on at once.
You're also, you scored a major win, obviously, with one of the big six.
Are you looking to get another of the big six?
Well, we are always looking to get one of the big ones.
But at the same time, I feel these are, we know it's a factual thing.
These are big corporations, big companies, and it's going to take time.
And I always believe in truly earning a business versus selling to a business.
So it's a process.
So there is no specific timeline I have in mind.
And honestly, we don't need to have a specific timeline in mind.
We always think about long term.
We know we are going to win the business, which is just a matter of time.
Just a matter of time.
I like that.
It's inevitable.
So have you reached a point yet where you're profitable?
I know you were at the...
Very good question.
No, I did mention to you, I do remember my comment to you,
which obviously I consider it as a public comment.
Yes, we are on track to be profitable next year.
In 2026?
2026, yeah.
How soon do you think?
January?
I don't have a timeline in mind, but hopefully we'll have,
in a good way, in a nice surprise.
So I don't have a timeline.
But 2026, definitely still tracking well.
I'm glad.
Along those lines, let's talk about the financial markets.
I know we've talked before about an initial public offering,
how the markets weren't ripe and you did your own thing instead.
Now the markets have been loosening up somewhat, it seems.
So does that affect your plans?
I don't think so.
We keep watching, as I may have mentioned to you,
while going public is one of the things in the cards for longer term.
In the medium term, near to medium term,
our focus has always been the fundamentals of the business,
doing the business right, becoming profitable,
having strong financial economics growth,
which has been very strong for us as well.
That's been our focus.
So I feel everything is tracking well.
When the time is right, we will think about going public.
Fair enough.
That's a way to politely put it off until it's more relevant to talk about.
And that's fair.
Now I have a question I've been dying to ask you.
Ever since I've been covering retail technology,
you've been the shiny new thing in the market, unlike all the others.
But now Pinewood is entering the market
and they're planning a big splash at NADA in January.
So what are your thoughts on having a company
that's also a big shiny tech entity coming to the market?
OK, so first I want to say healthy competition is welcome.
I always encourage healthy competition.
And it's a good thing to keep us and our teams on our toes
and make sure that we continue to deliver what we need to deliver.
At the same time, you may want to look up.
Pinewood is not a shiny new object.
So the company was formed in 1981.
So we want to look up, right?
But their DMS is shiny.
Well, it is in the sense compared to
what is available in the industry outside of TechEon.
But at the same time, as I said, it's a healthy competition.
Something we will watch out.
They've been doing reasonably well in Europe.
And complexity for an US market is exponentially bigger.
So as I said, we welcome the healthy competition.
But I'm really not worried by any means
I don't see them as a competition, at least yet.
At this point, I don't see them, consider them.
Knowing what we have built as a platform
and knowing how complex and big is the industry.
Yeah, I don't have any even the slightest concern.
Fair enough.
I also wanted to check in with you.
You talked earlier about the importance of data.
And I know that you have legal action in play against CDK
for not being able to access data with dealerships who are switching.
So are there any updates to share on that?
No specific updates as anything with the court proceedings.
We want to just maintain that confidentiality,
whatever is necessary from a legal proceedings perspective.
But our stand remains the same.
I think data freedom is something we have vouched for from early days.
And we will continue to watch for our dealers,
trust and believe Techion for that.
And we are going to be collaborating with our dealers
and stay true to our business philosophy of fair competition,
which I kind of mentioned Mark on the stage as well.
I believe in fair competition and fair game.
If customers have to decide and choose
which is the best platform for them
and which delivers the most value for them,
and they should have the freedom to move their data wherever they want to.
Fair enough. Thank you very much.
I appreciate your time.
Techion CEO Jay Vajayan spoke with Automotive News
retail reporter Mark Homer.
You can read more about their conversation at autonews.com.
That's Daily Drive for today.
I'm Kellen Walker.
Thanks to Automotive News Executive Producer Jake Neer,
as well as our own Paige Hodder for her reporting for today's podcast.
We also had reporting from David Kennedy
and Greg Lason of our sibling publication Automotive News Canada.
You can get the latest news on retail tech,
supply chains and everything happening in the auto industry at autonews.com.
Come back tomorrow for a conversation about Hyundai's partnership with General Motors.
Now that GM plans to end production of bright drop electric fans.
We'd love to hear from you.
Let us know what you think of the show on the topics we covered today.
Send us an email at dailydriveatautonews.com
or leave us a voicemail at 313-444-2774.
And if you enjoy the podcast, remember to like,
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