US Auto Retailers Face Profit Decline Amid EV Challenges

U.S. Auto Retailers Battle Falling Profits Amid Shrinking Margins and EV Challenges

In a significant turn of events, major U.S. auto retailers are grappling with diminishing profits as new vehicle margins continue to compress under the weight of increasing discounts and incentives aimed at attracting buyers. The trend marks a departure from the price premiums that dealers enjoyed in recent years, spurred by high demand and limited vehicle supply. This development is placing unprecedented pressure on the profitability of dealers and automakers alike, according to a recent Cox Automotive report.