Episode #1420: Ford previews a $25K crossover for 2029, why the return of lease returns is great news for Penske, plus Nissan’s AI-powered factory cameras that are watching workers.

Show Notes with links:

• Ford is circling back to the affordable end of the market with a small crossover aimed at a roughly $25,000 starting price. Expected in 2029 with both gas and hybrid powertrains, the unnamed utility would give Ford dealers a fresh entry point below the Maverick—and another weapon against the affordability crunch.

  • Dealers got an early look at the crossover during a private Las Vegas meeting with Ford leadership. It was described as boxy, wide and reminiscent of the first-generation Escape.

  • At around $25,000, it would become Ford’s least-expensive vehicle, undercutting both the $29,000 Maverick and upcoming $30,000 Fathom EV pickup.

  • The crossover is expected to arrive in both gasoline and hybrid versions in 2029. People familiar with Ford’s plans say hybrid production is slated for the Hermosillo plant in Mexico alongside the Bronco Sport and Maverick.

  • Ford also showed dealers a four-door Mustang prototype, reportedly promising a sub-$40,000 price and sub-four-second 0–60 time. Dealers previously heard the name “Mach-4.”

• The lease-return pipeline is finally refilling, and Penske Automotive Group likes what it sees. After pandemic-era shortages disrupted the familiar lease-return cycle, growing maturities could deliver dealers two valuable things at once: returning customers ready for another vehicle and a healthier supply of desirable used inventory.

  • Penske expects some serious growth in returns: Toyota lease maturities are projected to rise from 4,200 this year to 5,600 next year, while BMW returns climb from 9,500 to 10,700.

  • Industrywide, Cox Automotive expects 3 million lease maturities in 2026 and 4.3 million in 2027. With residual values less favorable for customers than during the shortage, more vehicles could actually make it back into dealer inventory.

  • Penske’s Q2 lease penetration was 32%, well above the roughly 22% industry average. But its premium brands historically run in the mid-40% range, suggesting there’s still room for leasing to grow.

  • Penske COO Rich Shearing sees opportunity on both sides of the transaction: “We still have upside with the lease penetration.”

• AI is coming to the factory floor, but Nissan says this version is more personal trainer than job replacer. At its Canton, Mississippi, plant, AI-powered cameras are analyzing workers’ movements to improve training, identify ergonomic risks and even determine when the workstation needs an adjustment.

  • Nissan’s system tracks joints, body angles and task sequences while employees build Frontiers and Altimas, comparing their movements against an ideal process Nissan calls the “golden cycle.”

  • When AI flags an issue, managers can coach the employee, move them to a different task or redesign the workstation. The goal is safer, more efficient work, not simply telling someone they’re doing it wrong.

  • Nissan says the technology has contributed to roughly $34 million in safety and health-related savings at Canton. It could also help preserve manufacturing knowledge as experienced workers retire.

  • Canton is currently Nissan’s only plant using the system, but the automaker plans to expand it to Smyrna, Tennessee, and potentially its powertrain operations.

  • Nissan manufacturing executive Victor Taylor was pretty clear about the intent: “We’re not talking about job elimination.”