Episode Description
Episode #1349: Today we talk about Mitsubishi cutting weak dealers while betting on a product comeback, the growing FTC pressure pushing vendors toward all-in pricing transparency, and Pizza Hut discovering the hottest new trend in retail… 1990s nostalgia complete with red cups and Pac-Man.
- Mitsubishi is shrinking its dealer network while promising a future product comeback. The brand has cut underperforming stores, frustrated some retailers with low profits and aging products, but says a new EV and refreshed lineup could turn things around.
- Mitsubishi’s U.S. dealer count has dropped 16% since 2019, falling from 355 stores to just under 300 today.
- CEO Mark Chaffin says the strategy is “quality over quantity,” replacing low-volume stores with higher-performing operators expected to sell 3-5x more vehicles.
- Dealers say profits are razor thin, with many relying on used cars to stay afloat while struggling with an aging lineup and heavy fleet sales.
- Mitsubishi is betting on its “Momentum 2030” plan, including a new electric crossover this fall and several electrified models through 2030.
- One frustrated dealer summed it up bluntly: “Eventually Mitsubishi may get there with the new product, but it’s going to have to commit more to the U.S. if it wants to do well here.”
- As regulators tighten the screws on vehicle pricing transparency, vendors are racing to help dealers stay compliant. S&P Global Mobility and TrueCar both rolled out new tools designed to simplify fee disclosures, standardize pricing, and avoid FTC headaches before they become lawsuits.
- S&P Global Mobility launched “FeeSync,” a free industrywide tool that lets dealers update fees across vendors and marketplaces from one central hub.
- The push comes as the FTC continues sending warning letters to nearly 100 dealer groups over pricing and advertising practices.
- TrueCar updated its platform to display all-in pricing upfront, including dealer fees and add-ons, with expandable disclosures for shoppers.
- TrueCar CEO Scott Painter said the platform’s goal is “a transactional price that is good for both the dealer and the car buyer upfront, without negotiation.”
- Pizza Hut is leaning hard into retro vibes, remodeling stores to look like peak-1990s dine-in restaurants complete with Pac-Man, stained-glass lamps, and those iconic red cups. Turns out millennials will absolutely drive three hours for a little childhood comfort food.
- Since 2019, Pizza Hut has converted 144 locations into “Pizza Hut Classics” with throwback décor and dine-in experiences.
- Some remodeled stores are now top performers, with customers traveling long distances just to relive the experience.
- The nostalgia push comes as Pizza Hut closes underperforming locations while rival Domino’s continues expanding aggressively.
- Pizza Hut is also reviving its legendary “BOOK IT!” reading program, rewarding kids with pizza for summer reading goals.
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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