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CEO Joseph Fadool explained that foundational product extensions maintain strong and consistent margin profiles. He expressed excitement for new hybrid-related wins, which provide more clarity on OEM cycle plans. Regarding rare earths, Fadool stated that dedicated teams are in place to manage supply. He also confirmed that the portfolio is under continuous review against a 15% ROIC threshold, which drove the decision to exit the charging business and consolidate North American battery capacity.

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CEO Joseph Fadool explained that while EV-related requests for quotes (RFQs) have slowed outside of China, the company is seeing an increase in RFQs for foundational products, positioning them well for powertrain shifts. He highlighted that in China, 75% of BorgWarner's sales are with local Chinese OEMs, providing a strong position in that market.

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Executive Frederic Lissalde explained that opportunities in the combustion business arise from program extensions, prolongations, and hybrid applications, which can have varying capital needs. He confirmed a slowdown in new quoting for electrified powertrains in the West, as OEMs focus on launching existing programs, but noted this creates more opportunities for BorgWarner's foundational products.

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CEO Raymond Scott explained the move to Honduras was driven by labor arbitrage and availability for the labor-intensive work of wire harness assembly. He stated that bringing this work to the U.S. would be difficult due to labor scarcity and the current limits of automation for complex harnesses. CFO Jason Cardew clarified the $1 billion European exposure is revenue tied to vehicles produced there for the U.S. market, primarily with JLR, VW Group, and Mercedes. Scott concluded that program extensions are favorable, requiring minimal new capital and offering opportunities to renegotiate terms.

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President and CEO Raymond Scott explained that Lear's strategic acquisitions and 'Idea by Lear' initiative have enabled a modular seating approach, reducing costs and complexity while improving comfort. He stated this creates a durable cost advantage, allowing Lear to win business, such as the recent GM midsize truck program for ComfortMax, while protecting margins. Scott confirmed that this modular, frame-agnostic approach is accelerating product launch timelines.

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CEO Raymond Scott clarified that the current 'requests for information' (RFIs) are more focused on different vehicle architectures and battery designs rather than ex-China content. He noted this trend creates opportunities for Lear's innovative modular seating solutions. Scott explained that Lear is pursuing a dual strategy of moving labor-intensive work to lower-cost regions like Honduras while also aggressively investing in automation with a long-term goal of 'lights out' manufacturing, which reduces both labor and capital costs.

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CEO James Farley acknowledged the significant opportunity for Ford due to its U.S. footprint and stated the company is already being aggressive to gain share. President of Ford Blue and Model e, Andrew Frick, defended the SAAR forecast, noting it includes a payback from a strong H1 and is based on detailed modeling. Farley added that customers are already stretching affordability.

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CFO John Lawler stated that while leading quality indicators are improving significantly, he could not provide certainty on when the cost curve for warranty would bend due to potential issues with older models. Regarding pricing, Lawler noted that while Ford's pricing has been resilient, there are increasing pressures, and the full impact for 2025 remains uncertain.

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CEO Seetarama Kotagiri explained that a one-time warranty issue in Seating is resolved and the unit is tracking to its operational plan. He confirmed that recent guidance provides tariff relief for USMCA-compliant parts, which account for 75-80% of Magna's cross-border goods. Kotagiri also noted no significant changes to OEM production schedules have been observed and highlighted that over 65% of Magna's China revenue now comes from domestic OEMs.

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CEO Seetarama Kotagiri confirmed the 2026 outlook includes approximately $800-$900 million in confirmed higher ICE volumes offsetting some EV delays but noted the company remains cautious about further assumptions. He described the Steyr restructuring as "pretty straightforward" and substantially underway. He also characterized the Japanese OEM win as a key entry with a specialized product, though the overall business with Japanese customers is not yet substantial.

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EVP Randall Seymore detailed the U.K.'s outperformance, driven by inventory management and expense controls. Chair and CEO Roger Penske explained that major recalls are driving the warranty service mix, and noted that higher-margin leasing can mitigate tariff impacts on consumers. EVP Rich Shearing added that OEM partners have provided some near-term price clarity on both trucks and cars.

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Chair Roger Penske attributed the strong gross profit to the company's premium brand mix (77% of total). He noted that while some pressure is possible, factors like F&I and returning lease volumes should provide support. On BEVs, he stated inventory levels have normalized to 11% from over 30% previously, though they still require significant discounts. He also confirmed technician applicant flow is improving, which is key to growing the high-margin service business.

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Richard Shearing, Head of North American Operations, detailed that the stop sales had a net negative gross profit impact of approximately $4 million globally, after accounting for warranty repair revenue. He attributed the rise in recalls to increased vehicle software complexity and post-pandemic supply chain challenges. Shearing also expressed confidence in current gross profit levels, noting that while affordability is a challenge, disciplined sales execution and OEM incentives are helping to maintain strong margins.

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President & CEO David Hult asserted that Asbury's improved store mix makes it a different company today and that the Q1 strategy correctly prioritized gross profit over volume. He and COO Dan Clara reaffirmed the mid- to high-single-digit growth outlook for parts and service. David Hult also detailed how Tekion's unified customer profile and integrated CRM will enhance marketing, efficiency, and customer trust, ultimately driving top-line growth.

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President and CEO David Hult explained that new vehicle GPU strength is supported by Asbury's improved brand and market mix, noting that the company is different than it was in 2019 and that Stellantis performance was a significant headwind. Regarding the Tekion pilot, he highlighted a 70% reduction in plug-ins, easier employee onboarding, and increased productivity, which will lead to material SG&A savings upon full rollout. For January, Hult described trends as mixed due to weather but noted that underlying momentum, particularly in parts and service, remains encouraging.

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President & CEO David Hult explained that Stellantis's incentive strategy created a temporary competitive disadvantage, but recent changes are encouraging. He and SVP of Operations Dan Clara attributed the strong new vehicle GPU to Asbury's favorable brand mix, particularly in luxury. Clara confirmed that stop sales will create a warranty service tailwind starting in Q4 and extending into 2025, dependent on parts availability.

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CFO Tom Szlosek quantified the drag from AN Finance on the CFS PBR at approximately $150 for the quarter, highlighting the underlying strength of the core business. He affirmed they have ample warehouse funding capacity and are targeting an inaugural ABS issuance of over $500 million. CEO Mike Manley opined that not all of the recent sales strength was a pull-forward, citing underlying market momentum, and he expects any tariff impact to be cushioned by brand cross-shopping, suggesting a full 'payback' is unlikely.

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CEO Mike Manley confirmed that improved affordability and post-election confidence boosted sales, a trend he expects to continue into Q1 2025. He noted that OEMs are actively managing EV inventory in light of the changing subsidy environment. Regarding gross profit, Manley explained that the focus is on the total customer transaction and monthly payment, which builds long-term value and service business, rather than trying to maximize individual profit components in a transparent market.

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CEO Mike Manley explained that significant growth opportunities remain in After-Sales, particularly in the 3-to-7-year-old vehicle segment, and that his internal growth targets are more ambitious than the company's cautious public forecast. CFO Tom Szlosek addressed ANF, stating that an ABS program should lower funding costs and that he expects the portfolio to achieve run-rate profitability by the end of 2025, even with continued growth.

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CEO Daryl Kenningham affirmed that significant service capacity remains, citing hundreds of open bays and improved technician productivity. He highlighted the workshop A/C project, which lowers tech turnover. CFO Daniel McHenry noted that the GPU drag from EVs has lessened to about a $1,000 differential versus ICE vehicles. Kenningham added that potential CARB changes do not alter their acquisition strategy in those states.

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CEO Daryl Kenningham agreed that new vehicle GPUs are likely at or approaching a bottom, citing higher vehicle content and more rational OEM production. He also confirmed that aggressive technician hiring targets will continue in 2025, as the company has ample physical capacity and is focused on retention to drive after-sales growth.

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CFO Daniel McHenry stated that large-scale acquisitions in the U.K. are likely complete, but tuck-ins remain an option. CEO Daryl Kenningham added that significant tuck-ins are still available and that larger deals are still possible in the U.S. market. Regarding GPUs, Kenningham noted the decline is slowing and that OEM finance arms are becoming more aggressive to support affordability. McHenry added that stop sales on high-margin models suppressed the Q3 GPU figure.

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President Jeff Dyke stated that the tariff situation is uncertain but the company is prepared to navigate it, noting manufacturers will likely help absorb costs. He sees no major impact on M&A yet. CEO David Smith affirmed they are not price gouging customers. On fixed ops, Dyke highlighted the hiring of 345 incremental technicians since last March, which is driving growth. VP of Investor Relations Danny Wieland added that newer technicians are still ramping up to full productivity, indicating further runway for growth.

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President Jeff Dyke explained that luxury dealership valuations are favorable, and Sonic's strong balance sheet supports an aggressive M&A strategy focused on luxury and import brands in growth markets. He estimated EVs create a ~$400 drag on new vehicle GPUs. Regarding EchoPark, Dyke stated that store openings would resume, likely in early 2026, once used vehicle affordability improves. CEO David Smith, CFO Heath Byrd, EchoPark COO Tim Keen, and VP of IR Danny Wieland also contributed details on M&A drivers, EV inventory management, and the external factors influencing the EchoPark growth timeline.

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CFO Heath R. Byrd quantified the EPS impact from the CDK outage ($0.33) and the BMW stop sale ($0.05). President Jeff Dyke and CEO David Smith confirmed minimal storm impact. Heath Byrd and VP of IR Danny Wieland detailed the GPU headwinds from EVs, noting supply/demand imbalances. Jeff Dyke added that he expects strong Q4 incentives from luxury brands and that the company can continue adding technicians and service capacity.

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President and CEO Bryan DeBoer noted no major M&A impact from tariffs, while COO Adam Chamberlain confirmed clear OEM communication, with prices held through May. DeBoer explained that their model aims for higher gross profit through a better customer experience, though they sometimes trade margin for finance penetration. SVP of Driveway Finance, Chuck Lietz, added that while the ABS market is currently 'choppy,' DFC had a successful Q1 issuance and has ample warehouse facility capacity.

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President and CEO Bryan DeBoer stated that with some deals trading at high multiples for low returns, LAD's own stock is a more attractive investment, making share buybacks a near-term focus. He explained the 5% of unsuccessful acquisitions are typically underperforming stores within a group that are divested if not fixed. He projects a normalized front-end GPU of $4,200-$4,500, higher than pre-COVID levels due to a strategic shift to higher-margin brands and regions.

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CEO Bryan DeBoer confirmed cost-cutting momentum is strong, with the total target now exceeding $300 million, including future interest savings from inventory reduction. Regarding Stellantis, he noted sales have been challenging but improved in September. COO Adam Chamberlain added that industry-wide incentives are returning but remain below pre-COVID levels, with Stellantis's promotions being very short-term.

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CEO William Nash confirmed the new centers add capacity for all vehicle ages, including 6-to-10-year-olds, but emphasized that quality standards will not be sacrificed. He noted the new centers also reduce logistics costs. Regarding the EPS model, CFO Enrique Mayor-Mora clarified that the path back to a mid-70% SG&A-to-gross-profit ratio is factored into their long-term EPS growth guidance, though it will take time to achieve.

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CEO William Nash clarified that the age mix of vehicles was very similar year-over-year, with the 0-4 year-old segment actually increasing slightly. However, he highlighted that the team successfully grew the mix of vehicles sold under $20,000 to 30% from 25% a year ago, attributing this to strong, diversified sourcing efforts.

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SVP Jon Daniels pointed to the reserve-to-receivables ratio (2.82%) as a key metric highlighting the positive impact of past underwriting tightening. President & CEO William Nash clarified that no new tightening occurred in Q2. Regarding sourcing, Mr. Nash credited their success to diversified channels, especially the MaxOffer platform via Edmunds, which has seen a 50% year-over-year increase in active dealers, providing better access to supply.

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Interim CEO Marc Winterhoff explained that Peter Rawlinson felt it was a good time to transition after 12 years and establishing the Air and Gravity vehicles. Winterhoff noted that Gravity orders, which opened in November for the high-trim Grand Touring, have been surprisingly strong with most configurations exceeding $120,000, despite minimal marketing. He confirmed the 20,000-unit production guidance for 2025 is supply-constrained for the initial quarters. He also stated the Midsize platform is being led by the existing team and will be unveiled in late 2025 or early 2026.

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CEO & CTO Peter Rawlinson explained that the Lucid Gravity's competitive pricing is a direct result of its technological efficiency, particularly its smaller battery pack, which creates a significant bill of materials advantage. He stated this technology allows for a superior product at a better value. For the Midsize platform, Rawlinson confirmed that core software and control logic are transferable, but it will utilize a new, cost-focused 'Atlas' powertrain and architecture designed for high-volume production, emphasizing that the 'factory is the center of the cost down driver.'

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CFO Claire McDonough explained that the path to modest gross profit is driven by over $1 billion in high-margin Software & Services revenue, which offsets a negative automotive gross profit on a GAAP basis. CEO RJ Scaringe addressed long-term volume by highlighting the Normal plant's flexibility to produce R1, R2, and vans, providing resilience against cannibalization and allowing the company to adapt to market demand for each product line.

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CEO Kevin P. Clark explained that while stronger North American production would yield traditional incremental margins of 18-22%, the company's conservative outlook is intentional due to geopolitical uncertainty and high D3 inventory. Regarding China, he confirmed a rapid and ongoing shift toward local OEMs, noting they gained significant share in 2024 and expect to reach market parity in revenue mix by early 2026.

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CEO Kevin P. Clark stated that in a normalized environment, Aptiv is well-positioned for strong growth but reiterated that current OEM schedule volatility is the primary concern. He confirmed they are always evaluating the portfolio and explained the vision software investments are strategic moves to offer lower-cost, high-performance, localized solutions, especially for the China market.

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Jerome Dorlack, President and CEO, explained that Adient demonstrated its resilience in fiscal 2024 by managing to an 8% decremental margin, far better than the typical 17-18%, through austerity measures and collaborative engineering savings via its 'ES3 program'. He expressed high confidence in the fiscal 2026 timeline for European contract roll-offs, citing clear end-of-production dates for two-thirds of the business. Mark Oswald, EVP and CFO, added that the guidance range accounts for the dynamic production environment.

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CEO Peter Kelly acknowledged the six consecutive quarters of volume growth, attributing some dealer consignment increases to higher new car inventories. He concurred that a major off-lease volume acceleration is not expected until 2026. Both Kelly and CFO Brad Lakhia stated that AFC's risk metrics are actually improving, with no signs of contagion. Lakhia added that dealers are being more disciplined with inventory, which improves their credit profile, and AFC's strong risk management provides stability.

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CEO Peter Kelly noted that while dealer consignment is improving due to higher new car inventories, a major acceleration in off-lease commercial volume is not expected until 2026. Regarding AFC, both Kelly and CFO Brad Lakhia confirmed they are seeing improving risk metrics, not signs of trouble. Lakhia added that dealers are being more disciplined with inventory levels, which improves their credit profile, and AFC's strong risk management insulates it from retail consumer credit issues.

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CEO Benedetto Vigna confirmed that the company prioritizes a favorable mix and pricing over faster unit growth. CFO Antonio Piccon added that future margins depend on product mix and expenses, noting that H2 costs will increase and that the 2026 guidance remains firm.

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