Subaru, Honda, Mazda Can't Lower Prices FAST ENOUGH | Episode 1072

Subaru is the Japanese automaker being discussed in this segment, specifically around its financial results and investment timing. The hosts mention Subaru delaying in-house EV production after a large charge tied to tariffs.

“In-house EV production” means an automaker is developing and building electric vehicles using its own internal resources rather than relying on partners or outsourcing. The hosts frame it as expensive to develop, which becomes harder when EV demand doesn’t grow as quickly as expected.

Mazda is another automaker in the segment, used as an example of how the industry is struggling financially. The hosts cite Mazda sales dropping year over year and say Mazda delayed investments.

“EV slowdown” refers to electric-vehicle sales not growing as fast as automakers expected. The hosts connect it to weaker demand in the U.S. and even Europe, which makes it harder to justify large, upfront EV development spending.

Genesis is Hyundai’s luxury brand, and it’s brought up in the context of sales performance and brand momentum. In discussions like this, Genesis matters because it represents a premium option within Hyundai’s broader lineup strategy and can be compared in terms of whether it’s gaining or losing customers. That’s why it may appear in a sales-focused segment of a car podcast.

EV registrations are a measure of how many electric vehicles are newly registered in a given period, often used as a proxy for demand and sales momentum. In this segment, the hosts note that Subaru’s EV registrations were up in April even while overall EV registrations are still down dramatically. That tension is used to question how to interpret headlines about EV performance.

The Subaru Uncharted is a newer Subaru model discussed in the context of pricing and how the brand plans to sell it. It’s brought up because the podcast is comparing its expected cost to what buyers are willing to pay, and because pricing strategy can strongly influence demand. That’s why it shows up in a segment focused on market positioning.

The Toyota C-HR is a compact crossover built on a shared platform with other models in Toyota’s lineup. It’s mentioned because the podcast is comparing platform or design underpinnings, which can affect how a vehicle drives and how parts are engineered. That kind of discussion is common when people want to understand why two cars feel similar or share certain traits.

A joint venture with Toyota means Subaru and Toyota are collaborating as partners on EV-related development and production. In this segment, it’s used to explain why Subaru’s EV (the Uncharted) is tied to Toyota’s platform and strategy. Joint ventures are common when automakers want to share costs and accelerate new technology rollouts.

An oversupply of inventory means dealers/manufacturers have more vehicles available than customers are buying at current prices. When inventory is “expensive,” it can put pressure on brands to discount or cut pricing to move cars. The hosts connect this to why they think Subaru, Honda, and Mazda can’t lower prices quickly enough.

Execution risk is the chance that a company’s plans won’t work out as intended—often because of operational or market missteps. The hosts use it to argue that if automaker executives make more wrong decisions, financial outcomes can deteriorate quickly.

Tariffs are taxes imposed on imported goods. Here, the hosts argue that tariffs are the major driver of Subaru’s profit plunge, because manufacturers must pay extra costs and decide how much to absorb internally versus pass to customers.

A write-off is an accounting action where a company reduces the value of an asset or investment because it expects it won’t be recovered. Here, the hosts cite a $362 million write-off for Subaru’s EVs, framing it as part of why Subaru can’t fund aggressive incentive programs.

MSRP (Manufacturer’s Suggested Retail Price) is the sticker price automakers publish for a vehicle. In the segment, the hosts argue that raising MSRP year over year can reduce sales by making the cars harder to afford.

Incentive spend is the money automakers allocate to promotions that help sell vehicles—like rebates, financing deals, or other customer subsidies. The segment compares incentive spend for EVs (over $8,600 for Solteras and other EVs) versus the rest of the lineup (about $2,799).

The Solterra is an electric vehicle (EV) discussed in the context of incentives and the cost of moving EVs through the market. The podcast mentions that the expense to support EV sales—through incentives—was significant compared with competitors. That makes the Solterra relevant to conversations about how EV pricing and sales strategies are managed.

“EV initiatives that failed” refers to electric-vehicle plans that didn’t meet expectations—whether due to demand, costs, or execution. The hosts connect these failures to accounting write-offs and to the lack of cash available to fund future incentive programs.

Day supply is an inventory metric that estimates how many days it would take to sell the current stock at the current sales pace. Higher day supply generally signals slower sales and/or too much inventory, which can lead to more discounting or incentives.

New vehicle inventory is the number of new cars sitting unsold in the retail/dealer pipeline. When inventory is high, it often means automakers and dealers have more cars than they can sell quickly, which can pressure pricing and incentives.

Cox Automotive is a major automotive data and analytics company that tracks things like new-vehicle inventory and sales trends. In this segment, the hosts cite its numbers to discuss how many new cars are sitting unsold and how long they’re likely to remain in dealer inventory.

“Sell down” model-year inventory means automakers and dealers work to move remaining cars from a prior model year before the next wave arrives. This often happens when production outpaces demand, leaving dealers with older-model stock that needs to be cleared.

A model year inventory sell-down is when automakers discount or push sales to clear out remaining cars from an older model year before the next model year arrives. The goal is to reduce aging inventory that ties up cash and warehouse space, especially when demand is weaker than expected.

The Ford F-series is Ford’s long-running lineup of pickup trucks, and it’s often the brand’s biggest volume seller. In the transcript, it’s used as an example of why Ford might be able to move 2025 inventory faster than other brands.

The Ford Bronco is Ford’s modern off-road SUV, and it’s a high-visibility model in the truck/SUV market. Here it matters because the transcript claims Ford’s remaining 2025 inventory is disproportionately made up of Broncos, implying demand and discounting pressures are model-specific.

The Ford F-150 is Ford’s flagship full-size pickup and one of the most popular trucks in the U.S. In the segment, it’s contrasted with the Bronco to show that Ford’s leftover 2025 inventory is heavily skewed toward Broncos rather than F-150s.

The Ford Bronco Sport is a smaller SUV in the Bronco lineup, aimed at drivers who want some off-road ability without the size of a full Bronco. It’s discussed alongside the Bronco because the names are similar, but the Sport is positioned more for everyday driving with light trail capability. That makes it a frequent topic for shoppers comparing which Bronco-style model fits their lifestyle.

Service loaners are vehicles a dealer provides to customers while their own car is being serviced or repaired. Manufacturers sometimes subsidize this by paying dealers to keep certain models in a loaner fleet, effectively using the cars as marketing exposure.

The Acura ZDX is a niche Acura crossover/coupe-style model that was sold in the late 2000s. The speaker references it as an example of a manufacturer paying dealers to stock it in a service-loaner fleet to encourage sales.

Days supply is a market metric that estimates how long current dealer inventory would last at the current sales pace. Higher days supply usually signals slower sales and more inventory pressure on pricing.

Average listing price is the typical advertised price dealers show for new cars (often before final discounts and incentives). Tracking how it moves month to month helps gauge whether dealers are raising or lowering asking prices.

A seasonally adjusted run rate is a sales figure that’s normalized to remove predictable seasonal swings (like spring/summer buying patterns). It’s then expressed as an annualized pace, so you can compare months more fairly.

The Dealer Track Otter Credit Availability Index is a metric that tracks how available auto financing credit is for dealers and consumers. A higher reading generally means it’s easier to get loans, which can improve affordability and sales momentum.

Honda is referenced as a Japanese brand with a cited low day supply of inventory, which the hosts connect to market leverage and pricing pressure. The segment uses Honda’s inventory figure to argue the situation is “precarious.”

General Motors is included in the contrast against Subaru/Honda/Mazda, as part of the hosts’ discussion about which automakers are positioned better or worse in the current market. It’s a brand-level comparison rather than a model-specific one.

A seller’s market means demand is strong relative to available inventory, so sellers have more pricing power. A buyer’s market means inventory is easier to find, so buyers have more leverage to negotiate.

The Dodge Ram 1500 is a full-size pickup truck known for being a practical work vehicle and a common choice for long-term ownership. It’s mentioned here through the example of a 2008 Ram 1500 with very high mileage, which highlights how these trucks can be kept running for years with proper maintenance. That kind of real-world ownership story is often why the Ram comes up in podcast discussions.

The 1934 Mercedes-Benz 500K is a pre-war grand tourer known for its supercharged “K” engine and classic long-hood styling. It’s a highly collectible vintage Mercedes-Benz because of its distinctive design and rarity compared with modern cars.

The Renault Wind is a small convertible that’s designed for open-air driving. It’s mentioned because the conversation includes the downside of wind noise, which can become noticeable in the cabin. That kind of detail matters for buyers deciding whether a convertible is comfortable for everyday use.

Using AI here likely means automated or assisted messaging/requests to dealers to standardize how quotes are gathered. That can reduce human-to-human variation and make comparisons across dealerships more consistent.

OTD (out-the-door) price is the total amount you pay to buy the car, including the advertised selling price plus taxes, registration, and dealer fees. It’s a key number because it removes the “headline price” confusion from online listings.

The Nissan Titan is a full-size pickup truck, and this segment uses a specific example: a 2021 Nissan Titan listed for sale. The hosts focus on the out-the-door price and dealer fees to illustrate how dealer transparency affects what buyers actually pay.

A dock fee is a charge dealers apply for moving or handling vehicles when they arrive at a port or distribution facility (“at the dock”). In this segment, the dock fee is highlighted as a cost that can remain even after negotiation, affecting the final OTD price.

A protection package is a dealer-added bundle of items—often things like paint protection, interior protection, or other coverage—added to the sale price. The hosts call out a $1,595 protection package as part of why the OTD can be higher than the initial advertised number.

“Bait and switch” describes a sales tactic where a buyer is lured in with one price or offer, but the final deal changes through added fees or conditions. The hosts use it to contrast transparent pricing with dealer practices that can mislead shoppers about the true cost.

“A-rated dealers” refers to the hosts’ grading system for dealerships based on transparency in how they present pricing and fees. The segment argues that shoppers should prefer higher-rated dealers because it reduces the chance of hidden or confusing charges.