Question · Q3 2025
Michael Patrick Ward asked for quantification of the variable gross per unit decrease from Q2 to Q3, its split between luxury mix and BEV sell-up, and expectations for Q4 reversal. He also inquired about the sustainability of the record finance and insurance (F&I) per unit.
Answer
CEO Mike Manley clarified that the primary driver for the gross per unit reduction was compression in domestic combustion and ICE sales, rather than solely BEV mix, despite BEV margins being poor. He anticipates improved supply/demand dynamics for BEVs in Q4. Manley expressed confidence in the continued strong performance of the F&I team, particularly in value-added products like extended service contracts, which bolster future aftersales and customer retention. CFO Tom Szlosek concurred with the assessment.