Is Nissan The Right Honda Partner?, CA Dealers Push Back on Scout, Overpriced Fast Food

The clock is about to run out on 2024, but that doesn’t stop the grind of the retail auto industry! Today we’re covering the latest awkwardness from the potential Honda-Nissan merger, how California dealers are threatening to sue Scout over their DTC plans, and over-priced fast food.

https://insideevs.com/news/745625/hon...
Honda's CEO Toshihiro Mibe faced an awkward press moment when asked why Nissan would make a good business partner, candidly admitting, “That’s a difficult one,” when trying to explain the rationale. The comment highlights broader skepticism and questions surrounding the partnership.
-Honda has a solid hybrid lineup but struggles with EV development after parting ways with GM. Meanwhile, Nissan faces financial instability and a declining EV market share despite its history as an early leader with the Leaf.
-Nissan's robust manufacturing network and supply chain might align with Honda’s hybrid expertise. However, overlapping product offerings could limit potential benefits.
-Nissan’s shares initially soared over 60% after the deal’s announcement but have since plunged by 13% over two days, signaling investor doubts.
-Both companies face uphill battles, with AlixPartners estimating any meaningful results from a merger might take three to five years.
-“Ideally, it would’ve been a healthy and financially sound company, rather than Nissan,” said analyst Julie Boote, echoing doubts about the merger’s feasibility.

https://www.autonews.com/volkswagen/s...
California’s new-car dealers are pushing back against Volkswagen Group and Scout Motors, accusing them of violating state law by taking direct-to-consumer refundable deposits for their upcoming electric Scout models.
-California’s amended Vehicle Code, effective Jan. 1, 2024, prohibits automakers or their affiliates from direct-to-consumer sales if they already have franchised dealerships in the state. Tesla is exempt, as it has never operated through franchisees.
-Dealers argue Scout's sales model excludes VW’s 50 franchisees in California, cutting them out of Scout's EV sales opportunities.
-Scout insists it’s independent from VW, designing a unique electric platform, and claims the direct sales model aligns with their “customer-first vision.”
-The California New Car Dealers Association is evaluating legal action if Scout and VW don’t comply with the law, saying “VW has chosen to launch the Scout brand in a manner that is brazenly unlawful.”

https://retailwire.com/discussion/sha...
A recent study has named Shake Shack and Five Guys as America’s most overpriced fast-food chains, sparking debate over whether premium pricing for burgers and fries is really worth it.
-Preply analyzed over 57,000 Google Reviews, highlighting Shake Shack as the most overpriced chain, followed by Five Guys and Sugar Factory. Key terms like “expensive” and “not worth the money” dominated customer feedback.
-A viral receipt showing $22 for a Five Guys burger, soda, and fries led to widespread backlash, with one post asking, “What is the right amount these days?”
-Shake Shack raised prices twice in 2024—3% in March and 1.5% in October—citing inflation pressures.
-Despite the criticism, Shake Shack posted strong Q3 earnings, with a 14.7% revenue surge and 17 new locations. CEO Rob Lynch said, “We are proud of the results…as we grew total revenue with positive traffic.”

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0:00 Intro with Paul J Daly and Kyle Mountsier
0:46 Cleaning up the inbox during the holiday
1:45 How retail auto is thriving at the end of the year
2:45 New Auto Collabs with Carol Marshall from Activengage
3:05 The best NADA parties are at NADAparties.com
4:37 Re-examining the potential Honda-Nissan partnership
7:15 CA Dealers Threaten Scout with Legal Action For DTC Plans
8:35 Shake Shack and Five Guys The Most Overpriced Fast Food Chains