Welcome to the Daily 5 report for Friday, Feb. 14.
South Carolina took its turn in the never-ending battle initiated by startup auto brands against state laws protecting franchised car dealers from direct factory-to-consumer sales.
Our story today by Jack Walsworth reports that the fight launched by Volkswagen's startup Scout unit is on hold, but this is a fight we'll no doubt see again in South Carolina and other states such as Florida. It used to be Tesla pushing the envelope on this issue, but Scout appears to be leading the way in the state where it plans to assemble its Traveler SUV and Terra pickup.
The bill allowing Scout's direct sales had some early momentum after it was introduced in the Legislature last month, but because a committee adjourned debate, the bill has been put on ice, according to local media reports. The legislative session began Jan. 14 and is scheduled to run through May 8. South Carolina Gov. Henry McMaster, a Republican, told local media Feb. 3 that he would sign the bill if it reached his desk.
This issue, particularly direct sales of electric vehicles, bends the usual partisan political lines — pitting conservative free-market capitalists and the liberal green lobby against long-established car dealers and their friends in state legislatures.
Speaking of legal battles that may never go away, the litigation between dealership management systems rivals CDK Global and Tekion ramped up again this week. CDK Global filed suit in federal court accusing Tekion of illegally accessing dealership data to steal customers. Tekion called the suit legal "bullying." Our story by Mark Hollmer simplifies this highly complex case.
In another story today by Walsworth, Chevrolet turned to one of its electric crossovers for a new NASCAR prototype. Chevrolet revealed the Blazer EV.R NASCAR prototype Feb. 13 ahead of the 2025 Daytona 500, the crown jewel on NASCAR's nationwide schedule. The 1,300-hp prototype features three electric motors with power supplied by a 78-kilowatt-hour liquid-cooled battery.
Also today, North America's largest auto supplier dimmed its 2025 outlook in the face of U.S. tariff headwinds. Canada's Magna International said revenue would decline this year while warning tariff increases would be disruptive and untenable for suppliers.
Magna said it expects lower 2025 revenue of between $38.6 billion and $40.2 billion, down as much as 9.8 percent from 2024, on lower light-vehicle production and the end of a complete vehicle assembly program with Jaguar.
The forecasts do not include the potential impacts of new tariffs, CFO Pat McCann said. But they do reflect the "high degree of volatility" Magna sees in the industry, particularly as it relates to uncertainty surrounding electric vehicle penetration rates and government policies, he said. "This has made forecasting more difficult than it has in the past," he told analysts.
That's it for now. Have a great weekend. The Daily 5 is off on Monday for the Presidents Day holiday.
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— Philip Nussel, online editor
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