Overview
Ford reaffirmed that its 2025 profit outlook remains unchanged after a second fire at Novelis’s Oswego, NY aluminum facility. Ford and Novelis said the incident was contained and that the cold mill and heat-treatment lines are operating, with finished material shipments to Ford continuing.
Hyundai introduced the 2026 Palisade Hybrid at a media drive event, extending its hybrid lineup in the family SUV segment. Specifications and timing details were not disclosed.
In Washington, Senate Republicans set a Jan. 14 hearing to review the costs and effectiveness of federal vehicle-safety mandates, potentially calling leaders from Detroit’s Big Three and a senior Tesla executive. The discussion will probe technology requirements and their relationship to an average new-vehicle price near $50,000, per the Wall Street Journal.
Fixed operations continue to anchor dealership profitability. Experts recommend targeting a 100%+ fixed absorption rate; the national average reached 63.9% in August 2025 (up from 61% in August 2024), with some Virginia stores exceeding 105%, according to NADA’s October Dealer Academy data.
Implications
- Supply continuity: Ford’s update reduces immediate risk of production or inventory disruptions tied to aluminum-intensive models.
- Product mix: Palisade Hybrid supports consumer demand for improved fuel economy without full EV adoption.
- Policy exposure: The Senate hearing may shape future safety-feature mandates, compliance strategies, and vehicle pricing.
- Dealer resilience: Elevating service, parts, and body shop performance can buffer tighter new-vehicle margins.
Claim check
- “Hyundai now ranks among the top five in 26 markets and among the top three in 12.” Status: Unverified in the provided material. Consider checking recent Hyundai global sales/ranking releases or third-party market share reports for confirmation.
Operational focus: Fixed absorption
A higher fixed absorption rate helps stabilize profits during inventory or incentive swings. The year-over-year improvement to 63.9% indicates progress, but many stores still have room to improve service retention, parts sales, and process discipline to approach or exceed 100%.
Leadership and best practices
Virginia’s Emily Marlow Beck, president of Marlow Motor Company, is the state’s nominee for the 2026 Time Dealer of the Year—the first woman from Virginia nominated since 1998—and will discuss store leadership and change management on Inside Automotive. Separately, Lee Harkins of M5 Management Services will outline service and parts strategies to improve net profits by applying sales-department rigor to fixed ops.
What to watch next
- Updates from Ford and Novelis on Oswego plant operations and any downstream production effects.
- Detailed specifications, timing, and dealer rollout plans for the 2026 Palisade Hybrid.
- Outcomes and follow-ups from the Jan. 14 Senate hearing on safety mandates and vehicle pricing.
- Dealership progress toward higher fixed absorption targets using NADA benchmarks.
