Question · Q3 2025
Ryan Ronald Sigdahl asked about the performance of Electric Vehicles (EVs) following the tax credit expiration, including sales and Gross Profit Per Unit (GPU) trends, and the future outlook for the EV category. He also inquired about the UK operations, specifically regarding SG&A, margin challenges, labor costs, and the impact of Chinese brands.
Answer
Bryan DeBoer, President and CEO, explained that electrified vehicles comprised 43% of the new car mix, with 4,000 qualifying EVs cleared in September. He noted that manufacturers are incentivizing to offset the expired tax credit, leading to the highest lease penetration ever. DeBoer also detailed the UK's labor market impact of $20 million, with $11 million already curbed through productivity. He highlighted growth in Chinese brands, with seven stores currently and five more opening, primarily driven by ICE vehicles rather than electrified ones, and noted that the UK's profitability was only down 2.4% year-over-year.