Mazda North America CEO: Consumers may be extending decisions but they're still shopping

Speakers

Tom Donnelly — CEO, Mazda North America

Phil LeBeau — CNBC Auto & Airline Industry Reporter

Summary

Consumer Behavior Shift: Auto consumers are not leaving the market ("shopping volume is still historically strong"), but they are significantly delaying purchases. Decision times have extended from 2-3 weeks to 5-6 weeks due to economic anxiety.
Affordability is King: The "sweet spot" for volume is now sub-$30k. Mazda is seeing double-digit growth in its entry-level sedan (Mazda 3) and had its "best year ever" for Certified Pre-Owned (CPO) vehicles (>75k units), indicating a trade-down effect.
Tariff Impact: Manufacturers are adjusting supply chains (increasing US production in Alabama) to hedge against potential tariff costs on imported models (like the Japan-built CX-5).

Trade Ideas

Ticker	Direction	Speaker	Thesis	Time
AZO	LONG	Tom Donnelly CEO, Mazda North America	Donnelly explicitly stated that Mazda's Certified Pre-Owned (CPO) business had its "best year ever" and consumers are migrating toward the entry-level $25k price point (Mazda 3) while delaying new purchases. When consumers trade down to used vehicles or delay new purchases due to "anxiety," the average age of the vehicle fleet increases. Older cars require significantly more maintenance and parts than new ones. High CPO volume is a direct leading indicator for aftermarket parts demand. Long auto parts retailers (AZO) as the primary beneficiary of a budget-constrained consumer keeping vehicles longer. A sudden drop in miles driven or a rapid easing of credit conditions stimulating new car sales.	—
F /GM	WATCH	Tom Donnelly CEO, Mazda North America	Donnelly notes the market "sweet spot" is currently under $30k and consumers are taking twice as long (5-6 weeks) to pull the trigger on purchases. Domestic OEMs like Ford and GM rely heavily on high-margin trucks and large SUVs with Average Transaction Prices (ATPs) often exceeding $50k-$60k. If the volume is aggressively shifting to sub-$30k sedans and used cars, these manufacturers face a negative mix shift and potential margin compression. Watch for inventory bloat in high-end trims for domestic manufacturers; the consumer is signaling an inability to absorb higher prices. Introduction of new incentives or rate cuts that lower monthly payments, reigniting demand for high-ticket trucks.	—
US CONSUMER	NEUTRAL	Tom Donnelly CEO, Mazda North America	Despite "anxiety" and delayed decisions, Donnelly confirms that "overall shopping volume is still historically strong" and digital metrics in Jan/Feb are comparable to December. This contradicts the "consumer collapse" narrative. The consumer is still active but highly selective and price-sensitive. This suggests a "muddle through" economic scenario rather than a hard recessionary stop. The consumer is bending, not breaking. Avoid shorting the broad consumer discretionary sector aggressively, but focus on value-oriented names. If the "delay" in decision-making turns into "cancellation" of purchases due to a labor market shock.	0:27