And I think we feel like that’s going to continue to improve throughout the year just based on looking at historical trends and just the discussions that we have in local markets.The other big thing that we’ve seen when we talk about the Western region is one thing, but when we talk about our North Central region, which is basically Michigan, you’re starting to see a lot of domestic manufacturers come back or all three domestic manufacturers coming back with their employee programs. And John, as you know, every single resident in Michigan seems to be an employee or an affiliated employee of an OEM, a domestic OEM.John Murphy Just to follow-up to that, do you think there’s an expectation, I mean, UAW strike in September is almost a foregone conclusion at this point.
Do you think there’s any view that they are building inventory in front of that to prep for it, because if you have a one or two month strike, you’re down 30 days to 60 days of inventory in a very quick period of time. So, is there any view that you have that that may be what’s going on and why they’re not coming back in with aggressive incentives right now?Chris Holzshu John, I think your line of sight on that is probably better than ours. I just know at the ground level, in the network, we definitely have inventory that can move and we’re starting to see incentives come back. So it’s hard for me to answer that question directly.Bryan DeBoer Chris also shared with me that the pipeline for the fleets are finally starting to fill as well. So we had actually seen in some of the domestic manufacturers that in the Western region, 60% of their mix was actually fleet, when the rest of the country was sitting at 25% to 28%, showing that there’s a little weakness in the Western region, but also, we’re thinking that once we get the data in from April, that hopefully that’s come down again, which means that the log jam a little bit with some of the domestics is starting to loosen up.
It could be beneficial on the strikes. I guess we have less insights of that and ultimately, we have one goal retail cars.John Murphy Okay. Bryan, just one follow up to that. And when we looked to 2010 and 2011, fleet was really the driver of the recovery and then retail came after. Do you kind of think that that may be what’s going on right now in the cycle because if fleet activity is picking up, that means commercial activity is picking up, which should drive the economy and which should drive the retail sales? Do you kind of envision that maybe what’s going on right here?Bryan DeBoer No, I think that that is a 100% accurate and I think there’s been a lot of noise and chatter around the idea of moving back to incentives and being able to control inventories that I think is something that’s making it even more of a future vision that let’s avoid the price and finance incentives because they’re less visible to the consumer okay.
And for the time being, let’s work on lease incentives like Chris said.John Murphy Okay, thank you very much.Operator Thank you. Our next question comes from the line of Ryan Sigdahl with Craig-Hallum. Please proceed with your question.Ryan Sigdahl Good morning. Thanks for taking our questions. Want to start with driveway.com? I don’t believe you quantified the loss in the quarter. Are you willing to do that or at least state if it was higher or lower than the past few?Bryan DeBoer Sure. Ryan, this is Bryan. You can actually get there. We gave you the SG&A of 60% without Driveway and we gave you the SG&A with Driveway at 62.7%. So what we’re seeing in Driveway today, which equates to $32 million approximately in SG&A costs. On a positive note, our burn rate month-over-month in March we’re finally gaining some traction, was actually down 25% month-over-month, big change and the volume was up 75% year-over-year in March.So, and was up about 25% month-over-month in March, just so you’re comparing apples-to-apples to that burn rate, which is good signs and it’s about — it’s about 10% in actual SG&A savings and it’s about a 10%, 15% in improvement in gross.Ryan Sigdahl And then you expect DFC to inflect profitably in 2024.
