Nutson's Auto News Wrapup, Week Of January 12-18, 2025
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Auto Central Louisville, Kentucky, January 12, 2025; Every Sunday Larry Nutson, The Chicago Car Guy and Auto Channel Executive Producer, with able assistance from senior Detroit editor Thom Cannell from The Auto Channel Michigan Bureau, compile The Auto Channel's "take" on this past week's automotive news, condensed into easy to digest news Nuggets.
LEARN MORE: Complete versions of today's news nuggets, along with hundreds of thousands of pages of relevant news, information and opinions are stored in a million-page library published and indexed on The Auto Channel during the past 30 years. Complete information can be found by copying a headline and inserting it into any Site Search Box.
Here are Larry's top story picks from this past week's important to you, relevant, semi-secret, or snappy automotive news, opinions and insider back stories presented as expertly crafted easy-to-understand automotive news nuggets.
Nutson's Auto News Wrapup, Week Of January 12-18, 2025
- Vehicle prices climb. New-vehicle prices in December climbed higher for the fourth consecutive month and were close to the all-time high marked in December 2022. Average transaction prices (ATPs), as measured by Cox Automotive’s Kelley Blue Book, typically peak in December, as high-priced models from luxury makers often sell well in the final month of the year. New-vehicle ATPs were $49,740 last month, an increase of 1.3% year over year and higher by 1.5% compared to November 2024. Incentive levels held steady at 8% of ATP in December, higher by 44% year over year; the average new-vehicle incentive package in December was $3,958. Sales of vehicles priced above $80,000 boomed in December, an increase of 37% year over year and well above long-term averages. Sales of EVs were strong in December as well and, with an average transaction price of $55,544, helped push the industry-wide ATP higher.
- Cloudy Skies Loom Over Auto Industry. Nishit Madlani, North American Autos Managing Director, S&P Global Ratings, says: “The debate surrounding tariffs on the import value of parts and finished vehicles into the U.S. is a focal point in the global auto industry. Meanwhile, the outlook for EV demand in the U.S. could face some downside pressure during Donald Trump's second presidential term. This will depend on the timing and magnitude of changes to consumer and production tax credits under the Inflation Reduction Act, as well as investments in charging infrastructure under the Bipartisan Infrastructure Law. We expect significant competitive pressure for all automakers in 2025 and 2026. Following a slowdown in market share gains for EVs and rising inventories for several models, we think the next wave of buyers will be more price-sensitive and depend on significant battery range improvements, charging infrastructure, and technology.”
- FTC ban. General Motors and the FTC have reached a settlement that will bar GM from disclosing data to consumer reporting agencies gathered through its OnStar technology about the driving habits of its vehicles’ owners. GM agreed with the FTC not to disclose drivers' data to consumer reporting agencies for 5 years. This is the FTC's first action related to connected vehicle data, according to a news release. More details: HERE
- EV sales increase. Global sales of fully electric and plug-in hybrid vehicles rose by a quarter last year to over 17 million cars, helped by a fourth consecutive month of record sales in December as China continued to grow and Europe stabilized, data showed. In the United States and Canada, EV sales rose 8.8% to 0.19 million in December, while Europe reported sales of 0.31 million, up 0.7% from the same month of 2023. Details: HERE
- EVs are here to stay. Auto experts say market forces and technological progress will ultimately drive a long-term transition to electric vehicles regardless of how far Republicans go in undoing President Biden’s climate agenda. Prices of batteries, the most expensive part of an electric vehicle, are falling fast. Technology is improving rapidly. Batteries are becoming lighter and smaller while allowing faster charging and longer travel distances. Automakers need to earn a return on the investments they have made in production facilities. And failing to keep up with the technology could make them vulnerable to emerging Chinese competitors that are all-in on electric vehicles. Full story: HERE
- EV leasing is the smart deal. About 45% of electric-vehicle transactions in the third quarter of 2024 were leases, compared with 24% for the industry as a whole, according to Experian. If the vehicle is leased, it is considered a commercial vehicle under the climate law, and none of the vehicle-related and lessee-income restrictions apply. The lessor of the car—often the automakers’ finance arm—gets the $7,500 and can pass it along in the form of lower monthly payments. Trump’s administration could tighten rules around the tax break for leased EVs or attempt to scrap electric-car subsidies altogether. Read more: HERE
- A take on the Detroit Auto Show. In the years before the Great Depression, Detroit had a grip on the global automotive psyche. Fast forward to 2025, and the Detroit Auto Show is underway, but you’d have to search hard for the news. Attendance was mostly local media and there was only one major car introduction. A far bigger Detroit story this month is the Lions, aiming for the Super Bowl. Detroit’s most influential businessman, billionaire Dan Gilbert's Bedrock portfolio of real estate and mortgage businesses is attracting young college graduates the way the car companies once did. The Bedrock staff ride bikes and scooters to work, or even walk from home to work, giving downtown Detroit a more vibrant feel than it has had in generations. Read more from Micheline Maynard: HERE
- Towing often? Make sure you have proper truck tires equipped. Most half-ton pickups sold in the U.S. don’t actually come with truck tires,” says John Wu of Maxxis Tire. Bafflingly, he’s not wrong: Most 1500-series pickups sold in this country come standard with P-metric passenger-series tires. To get a true LT-grade tire on your new truck, you have to either go deep into the options sheet, swap out to upgraded rubber, or make the leap to at least a 2500- series pickup. More details: HERE
- Lost in LA. Los Angeles was a car collector’s paradise. Now 6,000 are gone. Images in the media are scenes from a car enthusiast’s worst nightmare. Bulldozers plowing SUVs out of the road so emergency vehicles can move through. A well-worn family wagon that survived hundreds of thousands of miles, now burnt through. Porsche 911s in a private driveway identifiable only by their signature roofline and a singed Fuchs wheel.
- Motorsports 2025 begins. The Roar Before the 24 sportscar practice weekend at the Daytona International Speedway is Jan. 17-19. Teams are required to attend the ROAR in order to compete in the Rolex 24 at Daytona. The entry list has 61 teams entered.
- Cadillac and Formula 1. In November 2024 GM and TWG Global announced they had reached an agreement in principle with Formula 1 to bring a Cadillac team to the series in 2026. At that time they said it will initially be a customer team—with its engine supply to be determined. Last week, TWG Motorsports and GM unveiled the creation of GM Performance Power Units LLC, a new company set to propel Cadillac into Formula 1. The partnership aims to establish Cadillac as a “full works” team—developing both vehicles and power units—by the end of the decade. The Cadillac Formula 1 Team will utilize Ferrari power units until the new GM engines are approved for racing use.
- Dakar Rally. The 47th edition of the Dakar Rally — the sixth to be run in Saudi Arabia — was completed on January 17 by 175 vehicles. A total of 77 bikes (including 67 Rally 2), 40 Ultimate cars, 1 Stock car, 21 Challengers, 23 SSVs and 13 trucks reached the final finishing line after covering the entire 7,828 km (4,864 miles) of the route. Another 52 vehicles that used their jokers also finished, while 108 — nearly a third — were forced into premature exits from the world’s most grueling rally raid. Toyota ruled the roost in the top class but with some new names up front in Yazeed Al Rahji and Henk Lategan. Overdrive Racing’s Yazeed Al Rajhi has won the Dakar Rally for the first time, after coming through the final 61km stage in Saudi Arabia’s vast Empty Quarter unscathed. More: HERE
- RIP. Mecum Auctions shared the news of the passing of one of Mecum's cornerstones, John Kraman. John played a pivotal role in the growth and success of Mecum Auctions, serving as a consignment director and becoming the unmistakable voice of Mecum since their television debut in 2008. His dedication to positioning the Mecum brand in the best possible light was more than a career—it was his life’s mission. John set the standard for excellence, demanding accuracy, precision and the highest quality in everything we did. He wasn’t just part of Mecum Auctions; he was Mecum Auctions, living and breathing its essence every day.
Stay safe. Be Well.