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Episode #1334: Dealers face workforce cuts as Group 1 trims costs, Ford’s secret EV project reveals how it plans to hit a $30K price point, and Harley-Davidson shifts back to entry-level bikes to drive volume, boost dealer profits, and reconnect with new riders.

Group 1 Automotive has reduced its U.S. workforce by nearly 700 employees in April as leadership responded to a slower retail market and leaned further into technology to improve efficiency.

• Executives said the company cut about 5% of its U.S. workforce across dealerships and corporate roles to reduce costs.
• CFO Daniel McHenry said the cuts will save about $35 million annually, while vendor reductions add another $15 million in savings.
• CEO Daryl Kenningham said leadership reviewed “costs by store and market and business unit” and assigned new staffing targets accordingly.
• Leadership said the company protected service technicians and retained roles tied to training, development, and retention initiatives.
• Kenningham: “We feel like we have enough technology overlay that’s going to compensate for those lower productivity salespeople that we might have separated with,”

We’ve talked about Ford’s low-cost EV project before, but now we’re getting a clearer look at how they plan to actually make money on a $30K electric truck.

• A Wall Street Journal article is detailing how the Ford program led by Silicon valley engineers is focused on stripping costs out of EVs.
• Ford insiders said the “techie outsiders” and legacy engineers initially struggled with “misunderstandings and distrust,” as fast-moving, risk-tolerant Silicon Valley approaches clashed with Ford’s more cautious, process-heavy culture.
• The development team cut parts, simplified wiring, and redesigned assembly using large castings and modular builds to reduce labor and complexity.
• Engineering lead Alan Clarke said, “We can look at it as, ‘The Chinese are really far ahead and it’s really scary that they’re coming.’ But, get off your ass and do something about it.”

Harley-Davidson is pivoting hard toward affordability, bringing back the Sportster and launching lower-cost models as it tries to reverse years of declining sales and reconnect with a broader rider base.

• Harley leadership is returning to entry-level bikes after years focused on high-priced touring models that boosted margins but hurt unit sales.
• CEO Artie Starrs said the revived Sportster will start around $10,000, while a new Sprint model is expected near $6,000 to drive volume.
• The strategy aims to grow dealer profitability, with plans to double profits this year and quadruple them by 2029.
• Harley is also pushing more showroom traffic by requiring online merchandise purchases to be picked up at dealerships.
• CEO Artie Starrs said, “Our riders want it, which means our dealers want it, which is why we’re so passionat

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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