Automotive State of The Union
Paul J Daly and Kyle Mountsier don’t just read headlines, they make the most important connections across car dealerships, general retail, tech, and culture. The goal? To help automotive leaders think clearer and move faster in a world that refuses to slow down. Whether you’re running a rooftop, building a brand, or just trying to keep up with everything shifting in the business of selling cars, this is your regular stop for a shot of news, insight, and a little bit of chaos…always rooted in people-first thinking. From the showroom to Silicon Valley. From Wall Street to Main Stree...
Fri, April 11, 2025
Tariff Fears Cause 150K Sales In March, Tesla and China, How to Develop Frontline Workers
Shoot us a Text. Episode #1015: Today we’re diving into how global tensions are reshaping Tesla’s China strategy, why car buyers rushed showrooms ahead of auto tariffs, and why Harvard says better mentoring might be the secret to fixing retail’s revolving door of turnover. Show Notes with links: Tesla has stopped taking orders for its U.S.-made Model S sedans and Model X crossovers in China as trade tensions between the U.S. and China flare up once again. China will increase tariffs on U.S. goods to 125% on April 12, including autos. Tesla’s Model S and X are built in Fremont, California, making them directly affected. The option to order these models disappeared from Tesla's China site in early April. Tesla’s Shanghai factory, which makes the Model 3 and Y, isn't affected by the new tariffs. Model S and X made up fewer than 2,000 of Tesla’s 661,000+ Chinese sales last year. A spike in new car sales last month wasn’t just spring fever. According to Cloud Theory, auto shoppers raced to dealerships in March to beat looming tariffs. March saw 1.31 million new vehicles sold — a 38% jump from February. Cloud Theory attributes 153,000 of those sales to fear of impending price hikes from tariffs. Average marketed prices rose $1,123 from late February through March with SUVs, full-size pickups, and heavy duty trucks seeing the most increase — thanks to V8 engines sourced from Canada. Discounts and incentives dropped by $432 in March as OEMs braced for higher costs. “While this led to very strong results in the short term… the longer-term effects will likely be highly detrimental,” said Cloud Theory’s Rick Wainschel. A new Harvard study says the key to lowering retail’s notoriously high turnover may be simpler than we think: invest in frontline workers’ career growth and mentorship . Researchers found that most low-wage workers actually want to keep their jobs to avoid disruption in their lives — especially once they’re comfortable with their coworkers. Over 60% said they’d stay with their employer if they saw a real path to advance, but with many supervisors overseeing up to 20 employees, personalized feedback and coaching are rare. Employees often fear asking for promotions or raises, worried it might cost them their jobs. A related McKinsey study also showed career development was the top reason non-managers wanted to leave. Their advice? Empower manager
Thu, April 10, 2025
No Relief for Auto Tariffs, Record 84-Month Loans, Wizard of AI-Oz
Shoot us a Text. Episode #1014: Today, we’re covering President Trump’s pause on reciprocal tariffs leaves auto imports still facing steep duties, while a record number of buyers turn to 84-month loans to afford today’s rising prices. Meanwhile, Google is using AI to transform The Wizard of Oz for the Las Vegas Sphere. Show Notes with links: The auto industry is still squarely in the tariff crosshairs, even as President Trump backs off his broader reciprocal tariff plan. While a new 10% base tariff replaces most of the global duties, the 25% tariff on vehicles—and key materials like steel and aluminum—remains firmly in place. Treasury Secretary Scott Bessent confirmed auto, steel, and aluminum duties are sector-specific and still active. Despite ongoing auto tariffs, markets surged on the pause news—Tesla jumped 22.7%, GM rose 7.7%, and Ford gained 9.3%. Industry leaders are pushing for relief with MichAuto’s Glenn Stevens Jr. advocating for protecting the international supply chain, calling the fragmentation “harmful” to competitiveness. President Trump said he would consider exempting specific companies from tariffs, saying “We’re going to take a look at that.” More new-vehicle buyers are turning to 84-month loans than ever before, highlighting just how financially stretched today’s car shoppers remain. According to Edmunds, 20% of Q1 new-vehicle loans were for 84 months, up from 16% in 2024 and 13% in 2019. The average amount financed also jumped to over $41K compared to $32K in Q1 2019. On the used side, 12% of loans ran 84 months, more than double the 5.3% seen in 2019, with an average of $28K financed. Dealer Michael Cummings of I-10 Toyota: “I really, really don’t like going 84 months... it’s not healthy for the customers in the long run. It’s not healthy for us dealers in the long run.” The Las Vegas Sphere is set to deliver a next-level trip down the Yellow Brick Road, thanks to a heavy dose of Google-powered AI as a new immersive version of The Wizard of Oz will debut on the Sphere’s colossal wraparound screen. Google used AI models like Gemini, Veo 2, and Imagen 3 to enhance and reimagine the 1939 classic. Scenes originally limited by 1939 camera tech now show full-room perspectives—like Uncle Henry appearing on screen with Dorothy, Aunt Em, and Miss Gulch in a single wide-shot that never existed before. Warner Bros. a
Wed, April 09, 2025
Auto Repairs About To Increase, EV Ranges By Month, What The Public Really Thinks About AI
Shoot us a Text. Episode #1013: We cover the impact of upcoming tariffs on auto repair and insurance costs, seasonal shifts in EV range, and a new Pew survey revealing a major divide between AI experts and public opinion. Show Notes with links: Auto repair bills are on the verge of a sharp climb , and the clock is ticking. A 25% tariff on imported vehicles and auto parts, recently enacted by President Trump, officially takes effect May 3 — and it could add hundreds to even routine repair jobs. Roughly 44% of OEM parts are imported, many from Taiwan and other countries not exempt under USMCA, according to Cox Automotive. Experts say a standard brake job could jump $150–$200 per axle as parts hit with tariffs filter into the supply chain. Many shops have just 4-6 weeks of parts inventory and dealerships like LaFontaine Auto are proactively contacting customers who previously declined service to lock in current prices before the May 3 deadline. Insurance premiums may increase later in 2025 as claims costs go up, though experts say stolen vehicle rates and personal injury remain the bigger drivers. “Go get it done today because we could be having some different conversations in a couple of weeks,” said Skyler Chadwick, director of product consulting at Cox Automotive. If you're planning a road trip in an electric vehicle, do it in July or August. A new report from Vaisala Xweather shows those are the best months for EV range across the U.S., with average distances peaking at 267 miles. From June to September 2024, average EV range topped 250 miles in all 48 contiguous states and D.C. In contrast, January 2025 saw every state fall below the 250-mile median, with North Dakota at the bottom with 171 miles. Factors like air density, cabin heating, wind, and snow contribute to winter range dips. A sweeping new Pew survey highlights a major disconnect between AI experts and the general public. While most experts see AI as a personal and societal benefit, the average American is more worried than excited — and trust is in short supply. 76% of AI experts believe AI will benefit them personally, while just 24% of the public feels the same. Only 11% of Americans are more excited than concerned about daily AI use; 51% are more concerned than excited. Both groups agree: the government can’
Tue, April 08, 2025
Lithia Targets Service and Parts, Dealers Invest In Tech Funds, You Can’t Trade-In A Cybertruck
Shoot us a Text. Episode #1012: Today we’re talking about Lithia Motors’ internal challenge to boost service growth, FM Capital’s $240M bet on auto tech startups—with strong dealer backing, and the mounting issues facing Tesla’s Cybertruck. Show Notes with links: Facing underperformance in its service and parts growth , Lithia Motors is turning inward, challenging its frontline teams to raise the bar and reclaim momentum in a key revenue area. Lithia’s Q4 same-store service and parts revenue grew 3.4%, falling short of peers like Sonic (10%) and Penske (6.2%). CEO Bryan DeBoer emphasized it's not a technician shortage, but a “mindset issue” among service advisers and managers. The company is expanding its Partners Group program to include department managers, offering stock incentives tied to higher performance standards. COO Adam Chamberlain sees aftersales as a major 2025 growth driver, but warns current operations sacrifice customer pay for warranty work. DeBoer: “There’s been way too soft of management and lip service... Sixty to 90 days is our new mantra,” Venture firm FM Capital has closed its fourth fund at $240 million , aiming to fuel retail and mobility tech across the auto industry—with major backing from dealership groups. The fund surpassed its $200M target despite a tough venture capital environment. Investments will target AI, fleet tech, autonomy, connectivity, and energy transition. 125 investors participated, including 56 dealership groups representing over 1,100 stores. Holman and Cox Automotive returned as key backers in this round. Chase Fraser, Managing Partner of FM Capital: “Dealerships really respect entrepreneurs because they are entrepreneurs themselves. They want to get involved. They want to mentor some of these entrepreneurs. They want to test their products. They want to give them feedback because who knows better than the user?” Tesla’s Cybertruck is facing a brand-new problem—its maker doesn’t want it back. Owners looking to trade in their trucks are getting turned away, exposing deeper trouble for the high-profile pickup. Tesla is reportedly refusing to accept Cybertrucks as trade-ins, citing resale struggles and declining demand. The company has a backlog of nearly 2,400 unsold units worth $200M, with used values down 55% year-over-year. Some frust
Mon, April 07, 2025
OEM Tariff Plans, Toyota Eyes EVs, Gen Z Ditches Credit Cards
Shoot us a Text. Episode #1011: Today we’re breaking down the early fallout from sweeping auto tariffs, Toyota’s recalibrated EV strategy, and why Gen Z is ghosting credit cards. Show Notes with links: The 25% tariff on imported vehicles is forcing swift and varied responses from automakers, with some pulling back and others ramping up U.S. operations. The early shakeup shows just how disruptive the new trade landscape could become. Stellantis paused production at Canadian and Mexican plants and laid off 1,000 U.S. workers. Infiniti halted U.S.-bound production of the QX50 and QX55 “until further notice.” VW stopped rail shipments from Mexico; Audi is holding vehicles at U.S. ports post-tariff. JLR is temporarily pausing US shipments. GM is boosting pickup production in Indiana, and Mercedes may shift another model to Alabama. Ferrari and Ineos raised prices up to 11%, while Ford and Stellantis launched deep discounts to keep buyers interested. “Consumers will feel financial pain faster than they will see new jobs,” warned S&P Global’s Stephanie Brinley. Once criticized for lagging in the EV race, Toyota is charting a new path with more in-house models and global production —but with tempered expectations. The automaker is still prioritizing flexibility as it balances EV growth with its hybrid-heavy portfolio. The Japanese manufacturer aims to launch 15 internally developed EVs by 2027, including several Lexus models. New production sites in the U.S., Thailand, and Argentina are planned to hedge tariff risks and improve delivery timelines. The target is 1 million EVs per year by 2027—down from earlier projections of 1.5 million by 2026. In 2024, Toyota sold just under 140,000 EVs, less than 2% of its global volume of over 10 million vehicles. A new survey reveals Gen Z’s growing distrust of credit cards , with many opting for debit, cash, and peer-to-peer options instead. High APRs, confusing terms, and debt fears are driving a generational payment shift that could reshape future retail habits. 68% of Gen Z say credit card bills cause stress; 51% say cards give them the “ick.” Debit (68%) and cash (67%) top Gen Z’s preferred payment methods—only 35% use credit cards, with 82% of respondents overall saying credit cards are “financially dangerous.” 57% of Gen Z admit they don’t fully understand card terms, and 53% have been
Sat, April 05, 2025
Scott Bieler’s Vision Comes to Life at Villa Maria College
Shoot us a Text. Episode #1010: Head Writer Chris Reeves joins the show to not talk about tariiffs. Instead, we talk about stage names and the impact that dealers are making in their communities. What started as a press release a year ago is now a tangible symbol of community investment. The Scott Bieler Center for Academic Excellence is officially open, offering Villa Maria College students a place to connect, learn, and succeed. Bieler’s West Herr leadership mindset helped drive the project from vision to reality. The new center reflects a commitment to education and the broader Buffalo community. Behind-the-scenes collaboration and daily effort made it happen. It’s a reminder that the skills we use in retail—planning, teamwork, and follow-through—can transform lives outside the showroom. Join hosts Paul J Daly and Kyle Mountsier 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. Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
Fri, April 04, 2025
Panic Buying/Selling: What Should My Inventory Level Be? w/ guest COO of Matthews Auto Group Vincent Salvagni
Shoot us a Text. Episode #1009: Today we sit with COO of Matthews Auto Group Vincent Salvagni to discuss the question on every Dealer’s mind; What should I be doing with my inventory level? As consumers rush to beat tariffs, Dealers are worried about overpaying for replacement inventory and getting stuck holding the bag when things normalize. We also talk about Nissan delaying production cuts at its Smyrna, TN plant and Carvana's approach to the tariff headwinds. Show Notes with links: Nissan’s plans to cut a production shift at its Smyrna, TN plant have been reversed thanks to new U.S. tariffs on imported vehicles. The automaker is prioritizing domestic output to avoid hefty import duties. Nissan initially planned to end a shift at Smyrna as part of a 9,000-job global cut. Keeping U.S. production high avoids tariffs on Japanese-made Rogues, which made up over a third of 2024 U.S. Rogue sales. Workers had already been offered buyouts; Nissan hasn’t confirmed how many accepted. “It could mean saving jobs or it could be hiring people,” said a Nissan spokesperson. Carvana is stepping into the tariff era with confidence, positioning itself to capture increased used-car demand as new vehicle prices rise. After turbulent years marked by overestimation and investor skepticism, the company has streamlined operations and could now benefit from changing consumer habits. New 25% tariffs on imported vehicles may steer price-conscious buyers to the used market. Analysts expect an initial bump in used-car sales, especially from buyers priced out of new models. Carvana has reined in costs, insourced inspections, and restructured debt, improving operational health. Despite holding $5.6B in debt, the company is now generating enough cash to begin self-financing. “We’re in a much stronger position than we were 3–4 years ago,” said CFO Mark Jenkins Join hosts Paul J Daly and Kyle Mountsier 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. Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
Thu, April 03, 2025
The Tariff Playbook, Ford Counters With Employee Pricing, Tesla Deliveries Dip
Shoot us a Text. Episode #1008: Cars Commerce drops a no-nonsense playbook for dealers while Ford rolls out employee pricing for all as tariffs loom large. Meanwhile, Tesla’s Q1 delivery miss raises red flags far beyond a Model Y changeover. Show Notes with links: In a sweeping trade policy shift, Donald Trump announced a baseline 10% tariff on all imports; plus an additional 10–50% "reciprocal" tariff targets 60 nations with major U.S. trade deficits. Auto imports already under last week's 25% tariff won’t face increases and Mexico and Canada are exempt—if goods comply with the 2020 USMCA terms. Brian Kramer of Cars Commerce released a Tariff Playbook to help dealers navigate the changes. Here’s some of the highlights: Consumers are rushing to buy and scrutinizing where vehicles are built—use the Cars.com American-Made Index to guide inventory and messaging. EVs could see a short-term slump; hybrids and full-size trucks may surge. Align your lot accordingly. Six actionable strategies: reduce auction dependency, boost service-lane sourcing, go data-driven, ditch 45-day-old metrics, market American-made units, and build an offense-focused plan. “You won’t lose profit because the market adjusted. You will lose profit because your process didn’t,” Ford is throwing open the gates to its employee discount program , offering deep savings to all customers through June 2 as a preemptive strike against rising costs from newly announced import tariffs. The “From America, For America” campaign unlocks A Plan pricing—typically below dealer invoice—on most Ford and Lincoln models, with high-performance Raptors, new Expeditions, Super Duty trucks, and Lincoln Navigators being excluded. Discounts stack with other deals, including extended free EV charger installation now running through June 30. The announcement came just hours after President Trump enacted 25% tariffs on imported vehicles, which could significantly increase consumer prices. Ford’s imported models include the Maverick, Bronco Sport, Mustang Mach-E (from Mexico), and Lincoln Nautilus (from China). “It’s a way to give back to the communities that have supported us for generations,” said Rob Kaffl, Ford’s U.S. sales director, adding the move brings “certainty to an uncertain situation.” Tesla’s Q1 2025 delivery numbers are in—and
Wed, April 02, 2025
Tariffs Drive Sales And Dealer Questions, Amazon’s AI Flex
Shoot us a Text. Episode #1007: Consumers hit showrooms ahead of tariff hikes, juicing March sales and making record months and Q1s. Dealers like Rhett Ricart and Zac Kinch fielded a flood of buyers with questions and Amazon dropped Nova Act—an AI agent that shops, browses, and books like a pro. Spurred by tariff fear, consumers flooded showrooms in late March, giving the U.S. auto market a surge just in time for Q1 closings. The urgency sparked record performances for brands and sent retail sales soaring. Ford was up 19%, with Hyundai (+15%) and Kia (+25%) posting their best ever March and Q1. GM posted a 17% Q1 jump, with Buick leading at +39%. Inventory shortages, especially in hybrids, are expected in Q2 as a result of early Q1 pull-forwards. The average March retail price hit $44,849, up $637 YoY. Randy Parker, CEO of Hyundai and Genesis North America: “It’s probably the best weekend that I’ve seen since Cash for Clunkers… Lots of people rushed in this weekend, especially, to try and beat the tariffs.” The looming reality of sweeping import tariffs sent ripple effects through the auto retail landscape over the weekend, as dealers fielded a surge of questions and customer visits. While many came to buy, others came simply to understand what’s coming. Dealers are racing to educate consumers: inventory levels ticked up as brands rushed vehicles into the U.S. before the deadline. The Trump administration’s 25% import tariff is set to hit over 7 million vehicles starting April 3. Automakers are taking a mixed approach to pricing ahead of the tariffs—some, like BMW, are temporarily holding prices steady on imported models, while others are reducing incentives despite rising inventory, anticipating that tariffs will naturally drive prices higher. Rhett Ricart, CEO, Ricart Automotive Group said “One out of four of the people who called in were talking about tariffs—‘Does this car have a tariff on it? A Hyundai? A Kia? A Nissan?’ That’s what they wanted to know about.” Zac Kinch, GM, Bob Rohrman Toyota said “This is gonna be, ‘Learn and fly by the seat of our pants’... I think the auto industry is going to have to figure it out.” Amazon is diving deeper into AI with Nova Act, a semi-autonomous agent designed to operate both online and in the real world. With capabilities like browsing, shopping, and task execution, Nova Act is aiming to be your new digital helper. Nova Act can complete tasks like finding rentals, pl
Tue, April 01, 2025
What Dealers Should Do About Tariffs Today with Brian Kramer, TikTok Sale Deadline Looms
Shoot us a Text. Episode #1006: We’re joined by Brian Kramer, EVP of Cars Commerce to talk about the upcoming auto tariffs and how Tesla’s market share is declining. Plus, as the deadline to sell TikTok nears, some surprising potential buyers have emerged. Show Notes with links: As auto tariffs are set to go into effect (and potentially stick this time) on April 3, automakers have sent representatives to Washington to lobby directly with the Trump administration, arguing that tariffs on parts will drive up costs by billions of dollars. Meanwhile OEMs are warning dealers that vehicle pricing could change, with Hyundai telling its dealers “current vehicle pricing is not guaranteed and may be subject to change for units wholesaled after April 2.” Here to talk tariffs and how dealers should be approaching the next weeks and month is our good friend Brian Kramer, EVP of Cars Commerce and GM of Accutrade. With an April 5 deadline looming, ByteDance must sell TikTok’s U.S. segment or face a full ban. President Trump is optimistic that a deal is on the horizon. The app, with 170M U.S. users, was deemed a national security risk over data-sharing concerns and was originally set to be shut down on January 19. A wide range of potential buyers includes Blackstone, Perplexity, MrBeast, and Project Liberty. Project Liberty claims it has $20B in investor commitments for a deal and made an offer ahead of the January deadline. “There’s tremendous interest in TikTok,” said President Trump. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, March 31, 2025
Top 150 Dealer Groups, Toyota’s Hybrid Demand, Job Market Uncertain For Grads
Shoot us a Text. Episode #1005: The biggest dealership groups continue their march toward market dominance while Toyota’s hybrid boom is pushing suppliers to the limit. Meanwhile, Gen Z graduates face a tough reality as government hiring freezes throw career plans into chaos. Show Notes with links: The biggest names in auto retail continued their dominance in 2024, with the top 150 dealership groups expanding their footprint and market share. Growth, acquisitions, and shifting strategies defined the rankings, showing how consolidation is shaping the future of the industry. The top 150 groups sold over 4 million new vehicles in 2024, up 7.2% from the previous year, and now own 26.6% of all U.S. franchised dealerships, up from just 13.9% in 2011. Holman made the biggest leap, climbing 17 spots to No. 15 after acquiring Leith Automotive Group. Some of our other friends on the list: 140-DeMontrond, 134-Casa, 83-Sam Pack Auto Group, 80-Carter Myers Automotive, 70-DGDG, 60-Rohrman, 58-Bergstrom, 43–Ciocca, 32-Walser, 16-Ourisman “The top 10 reported owning 10.5% of U.S. dealerships, continuing the trend of industry consolidation,” said Mary Raetz, director of the Automotive News Research & Data Center. Toyota’s hybrid strategy is paying off— maybe too well . Soaring global demand for its gasoline-electric hybrids has outpaced supply, leaving customers facing long wait times and suppliers scrambling to keep up. Wait times for Toyota hybrids range from 60 days in Europe to nine months in India. Parts shortages, including key components from suppliers like Aisin and Denso, are causing production bottlenecks. Toyota is ramping up output, including a $14B battery plant in North Carolina set to ship batteries in April. Global hybrid sales nearly tripled over five years, hitting 16.1 million in 2024. The surging demand has led to soaring dealership valuations in the US. According to Mercer Capital, Toyota dealerships in metro markets, particularly in Florida, can command valuation multiples as high as 10 times earnings in today’s market. The class of 2025 is stepping into a tough job market , with tech downturns, federal hiring freezes, and economic uncertainty making it harder than ever for new grads to secure stable careers. Many are rethinking their career plans as public sector opportunities shrink. Government job applic
Sat, March 29, 2025
Elking Auto Group Gives Smiles and Keys
Shoot us a Text. Episode 1004: After we discuss the new name of this show (Automotive State of the Union), Paul and Kyle jump into a story Chris Reeves about the Elking Auto Group seeing a homeless mother and daughter in need and stepping up to help. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, March 28, 2025
Tariff Reactions, Tax Deduction for Auto Loan Interest?, Fisker’s Second Life
Shoot us a Text. Episode #1003: Dealers and analysts react to President Trump’s tariff order, as the administration considers a tax deduction for auto loan interest paid. Plus, Fisker Oceans have found new life as a rideshare fleet in NYC. Show Notes with links: Trump’s sweeping tariff order is shaking the auto world. The new 25% levy hits nearly all foreign-built vehicles and key components. Analysts predict $4K–$10K price hikes, and Cox Automotive warns that 30% of U.S. vehicle production could be disrupted within a week. GM stock fell 9%, hit hardest due to its reliance on Mexico and South Korea, Ford and Stellantis were down around 2% Ferrari responded by is raising prices by 10%, up to $350K on some models. Even Tesla isn’t safe—Elon called the impact “significant” due to global parts sourcing. Michael Wood, GM of JLR Virginia Beach on LinkedIn “This will inadvertently heavily impact a brand that never had jobs here in the first place. The outcome could be disastrous for those working at these stores. Volumes go down, staffs are reduced and displaced.” Rob Malanowski, Internet Director at Ancira Nissan said on LinkedIn “If you’re a car shopper, you will get to choose between: paying more for a non-US built vehicle, paying more for a US built vehicle, deciding you don’t really need a new car right now. Bet we’ll see a ton of people in group 3.” President Trump has proposed a tax deduction for i nterest paid on auto loans —but only for vehicles made in America. The idea, announced alongside 25% tariffs on imported vehicles, has drawn mixed reactions from dealers and analysts alike. Dealers are split—some say it could help consumers, while others doubt its feasibility. Analysts say the deduction could save buyers around $20 a month, but tariffs could add $60–$90 to payments. Used car prices could rise 9-12% due to increased demand for domestic models. The White House and Speaker Johnson’s office have yet to confirm details, including whether the deduction applies to standard tax filers. “I think it’s Trump’s way of trying to regulate interest rates,” said Ford dealer Nick Anderson, calling it a “pipe dream.” Trump argues the policy will “pay for itself” by increasing U.S. auto production. What happens to thousands of Fisker Oceans after the company goes bankrupt? In New York City, they’re hitting the streets as Uber and Lyft rides, thanks to a fleet ope
Thu, March 27, 2025
Trump Tariffs Loom Again, Hyundai Opens in GA, OpenAI Upgrades Image Gen
Shoot us a Text. Episode #1002: Today's show dives into Trump’s game-changing 25% auto tariff and what it means for car prices, Hyundai’s massive new EV plant in Georgia and OpenAI’s latest AI breakthrough in image and text generation. Show Notes with links: President Trump has officially imposed a 25% tariff on vehicles built outside the U.S., effective April 3. The move is set to rattle the global auto supply chain and could result in major price hikes for consumers. The tariff increases from a 2.5% base to 25%, covering vehicles and some auto parts like engines and transmissions. Parts meeting the United States-Mexico-Canada Agreement (USMCA) rules will get a temporary reprieve until the Commerce Department sets new regulations. Aaron Bragman of Cars.com said that 50% of all cars are imported from outside the US and encouraged potential buyers to act soon as prices could rise from $3K - $12K “If you need a new car, go get one as soon as you possibly can—lock in a price—because those prices might be going up very soon.” Manufacturers may shift production and pass higher costs to consumers and dealers, while retaliatory tariffs loom from other nations. UAW President Shawn Fain called it a victory for autoworkers, saying “Ending the race to the bottom in the auto industry starts with fixing our broken trade deals.” Hyundai has officially opened its state-of-the-art EV plant in Georgia, marking a historic $7.6 billion investment in U.S. manufacturing. The facility will produce Hyundai, Kia, and Genesis electric vehicles, including the much-anticipated IONIQ 9. Hyundai’s project is Georgia’s largest economic development investment ever, expected to create 8,500 direct jobs and over 58,000 total jobs. The 2025 IONIQ 5 was the first model built at the plant, with the three-row IONIQ 9 set to debut this spring. Hyundai recently announced a $21B investment in U.S. production, including $9B for EV expansion and $6B for a new steel plant in Louisiana. Hyundai Motor Group executive chair Euisun Chung said, “Together with the talented workforce at HMGMA, we are building the future of mobility with America, in America.” OpenAI is rolling out built-in image generation within ChatGPT, marking a big leap in AI-powered creativity. Dubbed “Images in ChatGPT”, this feature is available starting today across multiple user tiers. Users can now generate images directly within ChatGPT using GPT-4o’s “omnimodal” technology.
Wed, March 26, 2025
Nissan’s Big US Bet, More Chargers Than Gas Pumps, AI In the Drive Thru
Shoot us a Text. Episode #1001: Nissan reveals a bold new roadmap, slashing vehicle development times and expanding its EV lineup. Meanwhile, California now boasts more EV chargers than gas nozzles and AI is taking orders at drive-thrus—will customers embrace the speed or miss the human touch? Show Notes with links: Nissan is trying to shake off doubts about its future with a major product showcase in Japan, highlighting a wave of new vehicles and a focus on the U.S. market. Nissan will release over ten new and updated vehicles in the U.S. and Canada by early 2027. The company plans to cut vehicle development time from 55 months to 37 months for the first model in a family, with later models reduced to just 30 months. The Leaf transitions into a crossover, boasting a new CMF-EV platform, a sleek design, and a more efficient, lower-cost battery. Nissan also teased a rugged EV crossover, designed to stand out in a crowded market. The model will be built in Nissan’s Mississippi plant as part of a $500 million investment. The Sentra and Rogue will both get major updates, with the Rogue gaining a plug-in hybrid option. “The U.S. is of critical importance for us — we want it to grow,” said Guillaume Cartier, Nissan’s chief performance officer. California is accelerating its EV infrastructure, now boasting 48% more EV chargers than gas nozzles, according to a recent announcement from Governor Gavin Newsom’s office. As EV adoption surges, public charging options have nearly doubled in the past year, supporting the state’s ambitious green energy goals. There are over 178K public EV chargers statewide vs. 120,000 gas nozzles, and of that, nearly 17K are Level 3 fast chargers On top of that, the California Energy Commission estimates that there are more than 700,000 Level 2 chargers installed in single-family homes. 26% of vehicles on CA roads in 2023 were plug-in hybrids or full EVs and a $1.4 billion investment in EV infrastructure was recently approved. “The California EV driver experience is getting better by the day,” said CEC Chair David Hochschild, emphasizing continued investments in underserved areas. Taco Bell, KFC, and Pizza Hut are about to get a high-tech upgrade. Yum! Brands is teaming up with NVIDIA to bring AI voice assistants to 500 drive-thrus. The goal? Faster service, more accurate orders, and better upselling. Studies show AI-assisted orders are 29 seconds
Tue, March 25, 2025
Episode 1000!!!
Shoot us a Text. On Tuesday, September 28, 2021, Paul J Daly and Kyle Mountsier pressed record for the very first time. Now, 1,274 days later, they’re recording the 1000th episode of the Automotive Troublemaker. Today we’ve got special guests, a look back, a look forward, and a HUGE announcement at the end. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, March 24, 2025
Proton Thwarts Cyberattack, Ford’s Costly Legal Battle, Long-Term EV Adoption
Shoot us a Text. With 1 more day until Episode 1000, Kyle is on his way to Syracuse and Paul is joined by Todd Caputo. Today, we dive into a quick cybersecurity response that saved hundreds of stores from a malware attack, Ford’s $18M legal loss over a dealership sale, and the effect the current administration could have on EV adoption. Show Notes with links: A major cyberattack nearly hit hundreds of dealerships in early March, but Reynolds and Reynolds' Proton cybersecurity division stopped it in its tracks. On March 12, Proton detected malware disguised as an identity verification check, originating from video links provided by LESA Video Solutions. The attack aimed to infiltrate dealership employees' and customers' computers through social engineering. Proton blocked the malware across 1,000 dealerships, stopping it from spreading to 40,000 computers. “Our team quickly identified how to shut it down … and we pushed out tools to block it,” said Brad Holton, VP of Reynolds and founder of Proton. LESA confirmed the issue was resolved by March 15, launching new security measures. Cybersecurity expert Erik Nachbahr called the attack a “textbook example” of threats dealerships face today, emphasizing the need for early detection and rapid response. A judge has ruled that Ford improperly used its right of first refusal to block Auto Dealership Partners from acquiring a dealership, ordering the automaker to pay $18 million in damages. The right of first refusal allows automakers to reject a dealership buyer in a sale and substitute their own, sometimes using it to close or purchase the store. Ford used its right of first refusal in 2019 to prevent the sale of a Ford dealership in Benton, Ark., but Circuit Judge Timothy Davis Fox found Ford “engaged in deceit and fraud” by misleading the original buyer about the deal’s approval. Auto Dealership Partners was awarded $16 million in punitive damages and $2 million for financial harm from the altered transaction. The Trump administration’s plans to eliminate EV tax credits, weaken pollution rules, and cut charging infrastructure funding could slow EV adoption , increase emissions, and threaten factory investments, according to industry experts. While EVs will continue to grow, the tipping point for mass adoption may be delayed. Analysts say ending federal EV support could reduce EV sales by 40% in 2030 and put factories at risk of cl
Sat, March 22, 2025
There Is No Technician Shortage... IF You're Invested In Your Community
Shoot us a Text. On this Saturday, we get to recap the Greater Charlotte Automobile Dealers Association Auto Tech Competition that brought over 300 high schoolers to Charlotte Motor Speedway to compete on diagnosing issues in a high-stakes timed challenge. Students also participated in mock job interviews, connected with industry pros, and explored career paths in an industry that’s actively seeking fresh talent. We're joined by our good friend Todd Caputo, Ahmad Halawi from the GCADA and George Arrants from ASE to talk about how the technician shortage is a national concern with a local solution, and how they built a competition that fosters recruitment. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, March 21, 2025
Elon Says “Hang Onto Stock”, Auto Auctions Boom, Consumers Prefer AI In Review Replies
Shoot us a Text. Happy Friday! Today, we’re covering how Elon rallied Tesla employees during a surprise all hands meeting last night. Plus, auto auctions have their best year since 2020 and consumers prefer AI-generated responses to reviews over those written by humans. Show Notes with links: Elon Musk held a surprise all-hands meeting at Tesla's Texas Gigafactory on Thursday night, reassuring employees amid a steep drop in stock value. Musk urged employees and investors to "hang on to your stock" while promoting Tesla's Cybercab and Optimus robots. Musk addressed Tesla’s stock drop, which has lost roughly half its value since December, attributing future success to autonomous driving and AI. The operations team is tasked with ramping up Cybercab production, which Musk says will use a high-speed, electronics-style manufacturing process. Tesla plans to build thousands of humanoid “Optimus” robots, aiming to produce "at least one legion" this year and scale up further in 2025. Despite recent political controversy surrounding Musk, employees avoided the topic in the Q&A session. Musk admitted he is "stretched pretty thin," saying “I have like 17 jobs, at this point,” managing multiple companies and government advisory roles. The National Auto Auction Association (NAAA) reports that 2024 saw the highest number of vehicles sold at auction since 2020, marking a strong recovery for the wholesale market. NAAA member auctions moved nearly 7.6 million vehicles in 2024, a notable rebound. Of the 12 million vehicles offered, 61.3% were sold—the second-highest conversion rate ever recorded. The average wholesale price fell 5% to $13,921, but volume gains helped drive total sales to $105 billion. NAAA credits auctions as the "backbone of vehicle remarketing," offering vital services for efficient redistribution, offering logistics, reconditioning, and titling services that digital-only platforms struggle to match. "Our members reported year-over-year growth despite headwinds," said Larry Dixon, NAAA vice president of auction data solutions. Who should respond to online reviews? AI or actual people? For the second consecutive year, BrightLocal’s Local Consumer Review Survey found that consumers prefer AI-generated responses over those written by humans. The study raises quest
Thu, March 20, 2025
Used Cars From Amazon, GM Integrates nVidia, Amazon’s 99% Repeat Purchases
Shoot us a Text. Happy Thursday, Troublemakers! Today we’re talking about Amazon dipping its toe in the used car market, GM is going all-in on AI with Nvidia, and new data reveals surprising trends about who’s actually shopping on Amazon. Amazon has set its sights on used cars . The company, which has already been refining its new car-shopping platform in select U.S. markets, is gearing up to introduce used inventory to the mix. Amazon Autos expanded from 54 markets to 68 since its national ad campaign with Hyundai in January. Amazon’s Director of Autos, Fan Jin, confirmed that adding used car inventory is the platform’s next big milestone, enabling dealers to sell both new and used inventory in a fully e-commerce environment. Amazon is also exploring ways to offer F&I products in a low-pressure, consumer-friendly format, striking a balance between profitability for dealers and ease of purchase for customers. “More and more customers are comfortable with a fully online car transaction,” Jin said, while noting that many still want an in-person touchpoint before finalizing purchases. At Nvidia’s annual GTC conference, GM announced a major partnership with the chipmaker to integrate AI into its vehicles, factories, and robotics. GM will use Nvidia’s Omniverse platform to simulate virtual assembly lines, reducing downtime and improving efficiency. Nvidia’s AI training software will help GM’s factory robots improve at tasks like precision welding and material handling. Next-gen GM cars will feature Nvidia’s Drive AGX system-on-a-chip, capable of 1,000 trillion operations per second, to enhance autonomous driving. While GM’s Super Cruise is highly regarded, the automaker is looking to Nvidia’s tech to advance its self-driving capabilities. Nvidia’s automotive division is still small, generating $5 billion in revenue this year, but VP Ali Kani sees a “trillion dollar opportunity.” A new report from Numerator reveals key insights into Amazon’s shopper demographics and loyalty, highlighting both strengths and potential areas for growth. Amazon boasts a staggering 99% repeat purchase rate, far exceeding the e-commerce industry average of 28-30%. 75% of Amazon shoppers are women, and they are more likely than the average consumer to use the platform. Amazon sees higher engagement from rural and middle-income shoppers, but urban and lower-income demographics are less active, while Black, Hispanic, and Asian
Wed, March 19, 2025
Tesla Robotaxi Rollout, 5 Min EV Charging, Record-Breaking Hackathon
Shoot us a Text. Today in our little walk around the automotive landscape, Tesla takes a big step toward launching its robotaxi service in California, while BYD shakes up the EV world with game-changing 5-minute charging tech. Plus, a viral tweet sparks a $1M hackathon overnight—because the internet moves fast. We're celebrating our 1000th Episode next Tuesday! Join the watch party ! Show Notes with links: Tesla has taken a significant step toward launching its long-promised robotaxi service after receiving initial approval from California regulators, but there's still a long road ahead. The California Public Utilities Commission (CPUC) granted Tesla a transportation charter-party carrier permit (TCP), allowing it to operate a fleet of vehicles for pre-arranged trips. The permit does not yet authorize Tesla to provide autonomous ride-hailing services to the public. The company has a permit to test autonomous vehicles with a safety driver but has not yet applied for the necessary driverless permits. Elon Musk has been shifting Tesla’s focus toward robotaxis amid slowing vehicle sales, revealing the Cybercab concept last October. Chinese EV giant BYD just raised the bar in charging technology , announcing a groundbreaking system that can add 249 miles of range in just five minutes. BYD’s Super e-Platform can charge at 1,000kW, doubling Tesla’s upcoming 500kW V4 Superchargers. The new tech debuts in the Han L sedan and Tang L SUV, starting at around $37,330. BYD is investing in 4,000 ultra-fast chargers across China, addressing charging infrastructure gaps. Founder Wang Chuanfu says the goal is to make EV charging as fast as refueling a gas car. BYD is catching up to Tesla, selling 1.76M cars in 2024, just behind Tesla’s 1.79M, with 90% of sales in China. What started as an ambitious tweet turned into a reality in just a few hours. X user KP casually suggested a record-breaking, live hackathon with top sponsors—and Bolt made it happen. KP’s tweet proposed a Guinness World Record-level hackathon, envisioning 100,000 builders shipping new web apps in a single day. Bolt immediately responded, announcing $1M+ in funding for what could be the biggest hackathon ever, hosted by Greg Isenberg. The first challenge? Build a killer website for the event—with Bolt o
Tue, March 18, 2025
Used Car Market Updates, Tesla Prices Plummet, Astronauts Coming Home
Shoot us a Text. Today, we’re talking about how used car prices are on the rise—unless you’re driving a Tesla, where values are plummeting at three times the market rate. Plus, two NASA astronauts return home after an unexpected nine-month stay in space. Show Notes with links: The used-car market is heating up, with February retail sales jumping 16% month-over-month, the largest increase in years. While tax refunds are playing a role, tightening inventory—especially for budget-friendly cars—is making affordability an ongoing challenge. Used-vehicle supply dropped to 2.18 million units in early March, down from 2.23 million in February. Cars priced under $15,000 have only a 30-day supply—well below the 42-day industry average. The average listing price for a used car in March was $25,006, slightly down from last year. Ford, Chevrolet, Toyota, Honda, and Nissan account for over half of used-car sales, with the top 5 best-selling models listing at an average price of $23,531. February CPO sales hit 203,663 units, up from January but still 3.4% lower year-over-year. Used Tesla prices are dropping at three times the rate of the overall used car market, raising concerns about demand for both new and used models. While the market as a whole is cooling, Tesla's brand challenges seem to be accelerating depreciation. Tesla's used car prices dropped 3.7% in the last three months, compared to just 1.12% for the broader market and over the past year, Tesla’s used prices fell 7.26%, nearly triple the market average of 2.68%. Over the last 90 days, the Model 3 is down 4.2%, the Model Y is down 2.9% and Cybertruck is down 11.5% and a staggering 58% YoY Only the Model X saw an increase, up 1.29% in the past 30 days. After 9 months longer than expected, NASA astronauts Butch Wilmore and Suni Williams are finally on their way home from the International Space Station. SpaceX launched Crew-10 on Friday, docked on Sunday, and undocked and began its journey home early this morning. Originally set for an 8-day mission, their Boeing Starliner test flight faced thruster failures and delays, forcing them to stay aboard the ISS until a new crew could arrive. After technical issues, scheduling setbacks, and political drama, Wilmore and Williams are set to return to Earth tomorrow evening. Despite the delays, the astronauts enjoyed their extra stay in space with Wil
Mon, March 17, 2025
Foxconn’s New EV Partners, Affordability At 2021 Levels, People More Than Burgers
Shoot us a Text. We’re under 2 months away from the auto industry accelerator, ASOTU CON! You can get your tickets now at asotucon.com. Today we’re talking about how tech giant Foxconn is getting ready to reveal new EV partnerships and speculate on who those could be. Plus, we cover affordability easing and In N Out’s servant leadership mentality. Around 80 tornados were reported as a result of this past weekend’s powerful storm system, leaving a trail of destruction across the Central and Eastern US. As the communities affected begin to rebuild, we know dealers will do what they do best—step up, lend a hand, and take care of their neighbors. At ASOTU, we’re here to amplify their efforts, share their stories, and support in any way we can. Taiwanese tech giant Foxconn, better known as Apple’s iPhone manufacturer, is reportedly closing in on EV partnerships with two Japanese companies . This news follows speculation about a possible alliance with Nissan or Honda, especially after their failed merger talks. Hon Hai Precision Industry Co. (Foxconn’s official name) is expected to finalize the deals within two months, according to Chairman Young Liu. Liu did not confirm the companies but emphasized contract design and manufacturing services as part of the agreements. The March 11 appointment of Ivan Espinosa as Nissan’s CEO could pave the way for new negotiations. Foxconn is making global EV plays, having already signed deals with ZF Group (axle systems), Stellantis (semiconductors), and Infineon (silicon carbide chips), and aiming to start North American production of its Model C crossover in late 2025 to counter rising U.S. tariffs. Liu: “We are not looking to acquire Nissan but are interested in working with them.” New-vehicle affordability improved in February, reaching its best level in over three years, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. The average price of new vehicles fell by 1.3% for the month, improving affordability despite higher interest rates. Auto loan rates rose slightly to 10.16%, the highest in four months, but income growth (+3.5% YoY) helped offset this. Typical monthly car payments declined to $748, down 1.1% month-over-month and 1.3% YoY. It now takes 37.2 weeks of median income to buy a new vehicle, an improvement from 39.0 weeks a year ago. On the heels of being named the 8th Best Company to Work For, In-N-Out Burger CEO Lynsi Snyder credits her <a href='https://retailwire.com/in-n-out-burg
Sat, March 15, 2025
How Vehicles For Change is Helping Dealers Give Cars Back To Their Communities
Shoot us a Text. After Head Writer Chris Reeves gives us a worldview to follow, we talk about the story of how Mark Herbert of Herbert's Town & Country Chrysler Dodge Jeep Ramp gave a car to 21-year-old single mom Harmony Alexander in partnership with our friends at Vehicles for Change and NADA. https://www.ksla.com/2025/02/25/shreveport-dealership-helps-single-mom-get-reliable-car/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, March 14, 2025
Trump Meets Barra, Tesla Searches Plunge, Back To (Onsite) Work
Shoot us a Text. As we wind down another week, we’re talking about the meeting between President Trump and GM CEO Mary Barra at the White House discussing American manufacturing. Plus, we look at February market insights from Cars Commerce and see how far the pendulum has swung away from remote work. Show Notes with links: President Donald Trump met with General Motors CEO Mary Barra at the White House to discuss the automaker's commitment to U.S. manufacturing. The meeting, which took place amid ongoing industry discussions about domestic investment and job creation, highlighted GM’s plans to expand its U.S. operations. GM has signaled plans to invest $60 billion in U.S. manufacturing and production. Trump and Barra discussed ways to enhance domestic auto production and bring more assembly jobs to the U.S. The meeting follows recent discussions with Ford CEO Jim Farley and Stellantis Chairman John Elkann on industry-wide investments. Automakers are seeking policy stability on tariffs and vehicle emissions before making major long-term commitments. Trump praised GM's efforts and a GM spokesperson reaffirmed their support: “We share President Trump’s goals of a strong and competitive American manufacturing base.” The February 2025 Industry Insights Report by Cars Commerce highlights how potential tariffs are affecting car shoppers in the midst of slowing demand and rising new car inventory. As tariff threats began, between February 16 and 22, searches on car-shopping website Cars.com jumped 9% from the previous week. 52.1% of new inventory vehicles had their final assembly in the U.S. Meanwhile, 18.3% were assembled in Mexico, 4.0% were assembled in Canada, and 1.4% were assembled in China. New car inventory is up 8% YoY, but trends split: Ford (+24%), Hyundai, Chevrolet, Kia and Honda expanded supply, while Dodge (-70%), Jeep, Lexus, RAM, and Volkswagen pulled back. The used EV market is growing, with nearly 20 more models available YoY. Used Non-Tesla EV searches are up 25% YoY, while used Tesla searches have declined 8% YoY and 16% MoM Five years after the pandemic reshaped the workplace, remote work is steadily declining while hybrid and onsite arrangements gain ground. In late 2020, 46% of workers were fully remote; today, that number has dropped to 26%. Hybrid work has grown from 12% to 16%, but ons
Thu, March 13, 2025
Service Satisfaction Strong, EPA Rolling Back Emissions Rules, Mr. Beast Chocolate Profitability
Shoot us a Text. We’re only 10 episodes away from episode 1000 of this podcast, and today, we’re covering the JD Power 2025 US Customer Service Index Study. Plus, we’re looking at how the Trump administration is pushing back on emissions and fuel economy standards, and how Mr. Beast is profiting from something you might not expect. Show Notes with links: For the second straight year, dealership service departments have earned strong customer satisfaction ratings , according to the J.D. Power 2025 U.S. Customer Service Index Study. The study, conducted on owners of 1- to 3-year-old vehicles, ranked brands on a 1,000-point scale across five categories: service quality, service advisor, vehicle pickup, service facility, and service initiation. Luxury segment leaders: Porsche (912), Lexus (900), and Cadillac (888). Mass-market leaders: Subaru (896), Mini (888), and Honda (881). A generational trust gap emerged, with Baby Boomers scoring trust in service providers at 6.24 on a 7-point scale, while Gen Z rated it at just 5.77. 12% of issues were not fixed correctly on the first visit— and only half of those customers returned to the same dealership, while 5% went to aftermarket service providers. EV service satisfaction lagged behind ICE vehicles, attributed to technician training gaps and inconsistent communication. Satisfaction rose when recall services were bundled with maintenance, jumping from 829 to 858 points when paired with an oil change. The U.S. Environmental Protection Agency (EPA) is taking steps to reverse the Biden administration’s ambitious vehicle emissions rules , which would have forced automakers to ramp up electric vehicle production. The EPA is reconsidering its 2024 emissions rules, which aimed to cut passenger vehicle tailpipe emissions by 50% by 2032—a regulation that had Ford’s support. At the same time, the agency is reviewing a 2022 rule that reduced smog- and soot-forming emissions from heavy-duty trucks, citing concerns that it makes trucks more expensive. California’s plan to ban new gasoline-only vehicle sales by 2035 was sent to Congress for review, but the GAO ruled it cannot be repealed. MrBeast may be the most-subscribed YouTuber in the world, but his biggest business isn’t content—it’s chocolate. His snack brand Feastables made $251 million in sales and $20 million in profit last y
Wed, March 12, 2025
Trump Pitches Teslas at White House, Ford <3 Superchargers, Southwest Ends Free Bags
Shoot us a Text. Today, we’re talking about how the White House lawn became a Tesla dealership yesterday. Plus, we’re covering Ford’s investment into EV charging for its drivers and how Southwest is ending its longstanding free bag policy. President Donald Trump, long an opponent of Joe Biden’s EV push, threw a political curveball on Tuesday by inspecting—and even considering purchasing—a Tesla at the White House . The moment was seen as an olive branch to Elon Musk, a vocal supporter of Trump’s administration and a key player in the EV industry. Despite campaigning against Biden’s EV mandates, Trump praised Tesla’s technology and price points at the event. His appearance with Musk comes amid protests and boycotts of Tesla by liberal groups unhappy with Musk’s alignment with conservative policies. Tesla’s stock, which saw its worst day since 2020 on Monday, rebounded slightly after the event. While admiring Tesla’s tech, Trump drew the line at a new model lacking a steering wheel, saying, “I’m going to pass on that.” An eagle-eyed photographer at the event noticed that the President’s handwritten notes looked a lot like a sales pitch for Tesla, with phrases like “Teslas can be purchased as low as $299/month or $35K.” Ford has officially delivered over 140K NACS adapters to its EV customers . This move grants Ford EV drivers access to Tesla’s vast Supercharger network, marking a major step toward simplifying public charging and expanding infrastructure options. The milestone follows Ford’s 2023 announcement to integrate Tesla’s Supercharger network into its ecosystem. Ford EVs now have access to over 20,000 Tesla Superchargers—up from 15,300 last year and Ford’s BlueOval Charge Network has over 180,000 chargers at over 50,000 locations, making it North America’s largest public integrated charging network In February, Tesla Superchargers accounted for nearly 20% of Ford EV charging stops. Plus, Ford EV drivers using Apple CarPlay can now plan Tesla Supercharger stops directly in Apple Maps EV Routing, eliminating the need for a separate app. Southwest Airlines is making a major shift, announcing that starting May 28, it will charge for checked bags —ending its long-standing “bags fly free” policy. The change aims to boost profitability but may alienate loyal travelers. Only Rapid Rewar
Tue, March 11, 2025
New Nissan CEO, Carmax Chaos, China Teaches Elementary AI
Shoot us a Text. Today, struggling OEM Nissan has announced that current CEO Makoto Uchida will be replaced by Ivan Espinosa, their latest attempt to jumpstart a turnaround. Plus, chaos at a Carmax dealership as a customer rammed their vehicle into the building and China is making AI education mandatory, even for elementary school children. Show Notes with links: Nissan has appointed Ivan Espinosa as its new CEO , tasking him with accelerating the company’s turnaround after years of turmoil. He takes over from Makoto Uchida, who struggled to win full support internally and is stepping down after five years at the helm. Uchida’s leadership saw mixed success, with progress on restructuring but falling short on sales targets and failed Honda merger talks. Espinosa, 46, was selected at a March 11 board meeting and will assume the role on April 1. A product-driven executive, Espinosa has been serving as Chief Planning Officer, overseeing Nissan’s global product strategy and helping shape its EV and performance vehicle direction. Nissan faces mounting losses, weak sales, and a junk credit rating, with a significant debt load maturing next year. Espinosa says he will take a “360-degree look” at the company, emphasizing stability, growth, and strengthening the North American lineup. Nissan Chairman Yasushi Kimura admitted, “It would be a very challenging start for Ivan.” A routine vehicle appraisal turned into chaos at a CarMax dealership in Inglewood, California, when an angry customer drove his Subaru Outback through the showroom, injuring eight people after being upset with his offer. The incident occurred this past Saturday at 2 p.m., with the driver ramming into the store twice before fleeing the scene. Two people were critically injured, while six others sustained minor injuries, including two CarMax employees. 25-year-old Andrew Arroyo, reportedly on probation for a “wet reckless” charge, later turned himself in at the LAPD Academy. A video of the event has surfaced on TikTok and is being used in the police investigation. Witness Mitchell Marshall described the scene: “He backed up, made a big U-turn, and rammed it not once, but twice.” CarMax issued a statement, confirming their employees were among the injured and thanking authorities for their swift response. Beijing is making
Mon, March 10, 2025
Rooftop Count and Throughput Up, Quick Supercharger Repair, Starlink on Flights
Shoot us a Text. We’ve got good news this Monday as the latest numbers show that dealership count and throughput are up, with stores averaging 511 new cars sold per year. Plus, we cover a quick turnaround for a vandalized Tesla charger and how United is upping its Wi-Fi game with Starlink internet. Show Notes with links: The U.S. new-car dealership count rose nearly 1% to 18,311 as of Jan. 1, 2025, up 171 from a year earlier, while the total franchise count fell 1.3% to 29,829, according to the latest Automotive News dealer census. Detroit 3 automakers shed dealerships, while import brands added stores with Ford Motor Co. leading the decline among the Detroit 3, losing 68 stores (a 2.2% drop). General Motors and Stellantis also reduced their dealership networks by 0.6%. Buick, Lincoln, and Jaguar continued trimming their franchise counts, with Buick experiencing the most significant reduction—down 135 to 927. Buick's franchise count has dropped by over half in the past two years due to dealer buyout offers. The number of exclusive dealerships across the industry as of Jan. 1 increased 3.5 percent to 13,226 from Jan. 1, 2024. The industry’s average throughput (new-vehicle sales per franchise) increased by 5.8% to 511 vehicles in 2024, with the growth attributed to fewer franchises and an increase in U.S. light-vehicle sales to 15.35 million units, up from 14.9 million in 2023, according to Mary Raetz,director of the Automotive News Research & Data Center. Tesla swiftly repaired a vandalized Supercharger site in Massachusetts, bringing it back online in under 48 hours. The fire occurred overnight on March 2, 2025, causing wiring and Supercharger post damage, but the main cabinet remained intact. Tesla immediately communicated with customers on X (formerly Twitter), promising repairs within two days. Tesla is considering enhancing its Sentry Mode to deter future vandalism, potentially adding a honking feature. An arson investigation is underway with local police, though no suspects have been identified and the company is offering a $5,000 reward for information on the arsonists. United Airlines has installed its first Starlink system on a regional aircraft , bringing the airline closer to offering free, high-speed Wi-Fi across its fleet. The Starlink system offers free Wi-Fi to MileagePlus members, with
Sat, March 08, 2025
Stallone, Supercars and Over $1M Raised For Brain Health
Shoot us a Text. Chris Reeves joins Paul and Kyle today to discuss EV charging, Waffle Houses and plugging in extension cords into random outlets. Then, they talk about the Power of Love Gala, dealership owner Nick Dossa stepped up in a big way—donating not one, but two 2024 Lotus Emiras to benefit the Cleveland Clinic Lou Ruvo Center for Brain Health. Plus Sylvester Stallone offered an exclusive VIP on-set experience for his hit show "Tulsa King," plus signed bottles of his Carbonadi vodka. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, March 07, 2025
NADA Goes After VW and Scout, EV Charging Not Cheaper Than Gas?, Shake Shack Value Meal
Shoot us a Text. As we wind down another week, we’re talking about how NADA and Mike Stanton are winding up their opposition of Scout Motors direct-to-consumer plans. Plus, we’re looking at a report that says that EV charging isn’t such a cost-effective alternative to gas, and how Shake Shack is introducing its first ever value meal. Show Notes with links: The National Automobile Dealers Association (NADA) has escalated its opposition to Scout Motors’ direct-to-consumer sales model, sending a strongly worded letter to Volkswagen Group CEO Oliver Blume and other top executives. In the letter, NADA CEO Mike Stanton argued that the franchise model would give Scout Motors immediate marketplace traction through a network of experienced dealers. The direct sales plan, which establishes Scout-branded experience centers, is set to launch in 2027 with the Traveler SUV and Terra pickup. The letter also highlighted the potential fallout of Scout’s strategy, including prolonged legal battles across multiple states and a strained relationship with VW, Audi, and Porsche dealers. Stanton expressed disappointment over a lack of response to a previous letter sent in July 2023, noting that this latest message seeks a direct meeting with VW leadership. “The decision to directly distribute Scout in the United States and compete with your dedicated dealer body is misguided, violates well-established state franchise laws, and is one that I strongly encourage you to revisit.” — NADA CEO Mike Stanton EV adoption has been touted as a cost-effective alternative to gasoline , but rising electricity costs in several states are challenging that narrative. While EVs remain cheaper to operate in some regions, escalating residential and public charging rates are narrowing the gap. Charging an EV at home in Massachusetts is 116% the cost of fueling an efficient gas car, while New York and California cost 92% and 90% respectively. Washington and Florida remain the most economical for EV driving, with electricity costs at 38% and 54% of gasoline costs. Public fast charging costs have surpassed gasoline in some areas, diminishing the financial incentive to switch to EVs. Homeowners with access to off-peak EV-specific electricity rates or home solar and battery storage can still find savings, but this requires an upfront investment. Shake Shack, known as the most expensive fast-food chain in America l
Thu, March 06, 2025
Auto Industry Gets Tariff Exemption, Best Resale Value Cars, Google AI Search Mode
Shoot us a Text. The auto industry breathed a sigh of relief yesterday as it was announced that they will be exempt from the 25% tariffs on Mexican and Canadian goods. Plus, we’re looking at the cars that hold their value the best, and Google’s push towards AI search. Show Notes with links: The auto industry is temporarily relieved by a one-month exemption from the 25% tariffs on vehicles covered by the United States-Mexico-Canada Agreement (USMCA). President Trump granted the reprieve following requests from Ford, GM, and Stellantis, with the ultimate goal of shifting production to the U.S. The automotive provisions of the USMCA require that 75% of a vehicle's components be made in North America (up from 62.5% under NAFTA) to qualify for zero tariffs, and mandate that 40-45% of auto parts be made by workers earning at least $16 per hour, aiming to boost North American production and labor standards. Most automotive manufacturers comply with USMCA standards and The American Automotive Policy Council and automakers expressed gratitude for the temporary exemption. Suppliers remain concerned about long-term impacts, despite positive signs for USMCA-compliant parts. Dealers and industry experts view the exemption as part of a broader strategy to encourage domestic manufacturing, but uncertainty persists. “The damage has already been done. For an industry that operates in three- to five-year product cycles, this level of day-to-day uncertainty is debilitating.” — Glenn Stevens, Executive Director of MichAuto. Last week we covered the cars with the most depreciation, and now, Kelley Blue Book has announced its annual Best Resale Value Awards , highlighting the top performers of 2025. The top 10 vehicles are projected to retain an average of 58% of their original MSRP, compared to the market average of 44.6%. Toyota dominates the list, securing four of the top ten spots, including the #1 2025 Toyota Tacoma with a projected 64.1% resale value. The full top 10 list includes the 2025 Toyota GR Supra (53.7%), 2025 Porsche 911 (53.8%), 2025 Toyota RAV4 (53.9%), 2025 Honda CR-V (54.4%), 2025 Mercedes-Benz G-Class (56.6%), 2025 Ford Bronco (57.0%), 2025 Toyota 4Runner (60.0%), 2025 Toyota Tundra (60.9%), 2025 Chevrolet Corvette (61.0%), and 2025 Toyota Tacoma (64.1%). Google is accelerating its AI integration into search with a new feature called AI Mode, adding a chatbot-like experience directly to the core of Google Search. AI Mode, curre
Wed, March 05, 2025
Big 3 Exempt From Tariffs?, “The Trump Effect”, Paul and Kyle In The Wild
Shoot us a Text. Today, we’re bringing you the latest information on how tariffs could affect the auto industry, including the Commerce Secretary hinting that President Trump could exempt the auto industry. Plus, we’re covering how Honda is bringing Civic production back to Indiana, and Paul and Kyle’s wild adventures this weekend. Show Notes with links: In a primetime address to Congress, former President Donald Trump defended his sweeping tariffs , acknowledging a potential "adjustment period" but emphasizing the tariffs' role in boosting the U.S. economy. As many as 20,000 vehicles per day could be cut from North American production due to parts shortages and high costs. Parts stockpiles could run out within a week, even after companies moved as many parts as possible across the border ahead of the tariff deadline, according to Stephanie Brinley, principal automotive analyst at S&P Global Mobility. Many suppliers cannot absorb added costs and may push automakers to cover tariffs, potentially halting parts supply. Tariffs on steel and aluminum will increase to 25% on March 12, with further auto import tariffs possibly starting April 2. If tariffs persist, North American vehicle sales could drop 10%, and smaller suppliers might need financial assistance to survive. In an interview with Bloomberg this morning, Commerce Secretary Howard Lutnick hinted that President Donald Trump may exclude certain sectors, including autos, from the 25% tariffs on Canada and Mexico. The decision could favor industries that comply with the United States-Mexico-Canada Agreement (USMCA) content provisions. “My understanding is the Big Three say they produce cars that are compliant under USMCA, which means they have sufficient U.S content in them to be part of the USMCA agreement,” The White House celebrated a "Monday morning win" as Honda announced plans to move production of its Civic model from Mexico to Indiana, beginning in May 2028. The move was touted as part of "the Trump effect." The Indiana plant is expected to produce about 210,000 Civics annually. Honda did not confirm the change directly, instead emphasizing its ability to adjust production based on customer needs and market conditions, and highlighting its history of building the Civic in Indiana since 2008. Trump supporters, including economist Stephen Moore and Senator Jim Banks, praised the move as a sign that tariffs are driving "made-in-America" job growth. Senator Jim Banks stated, "President Trump has taken the ‘kick me’ sign off the backs of our workers and manufacturers.
Tue, March 04, 2025
Tariffs In Effect, Tesla Tops Depreciation List, Google Pushes AI Workforce
Shoot us a Text. Today is our fearless leader Paul J Daly’s birthday! So we gave him the morning off and tapped in producer Nathan Southwick. We’re talking all about the new Canada and Mexico tariffs that put pressure on the automotive supply chains, plus the top depreciating cars and how Google is pushing to achieve artificial general intelligence. Show Notes with links: The U.S. has enacted 25% tariffs on imports from Canada and Mexico, throwing the highly integrated North American production network into turmoil. The tariffs, effective today, March 4, apply to all imports except Canadian energy products, which face a lower 10% duty. Canada and Mexico both responded with their own tariffs. Industry experts predict vehicle prices could rise between $4,000 and $10,000, with Ford CEO Jim Farley cautioning that prolonged tariffs could "blow a hole in the U.S. industry that we have never seen." Flavio Volpe, president of the Automotive Parts Manufacturers’ Association said that there is potential for U.S. and Canadian auto production to revert to "2020 pandemic-level idling and temporary layoffs within the week.” Key auto models at risk include the Toyota RAV4, Ford Mustang Mach-E, Chevrolet Equinox and Blazer, and the Honda Civic and CR-V, while European automakers with manufacturing in Mexico, including Volkswagen, Stellantis, and BMW, saw their stocks drop sharply The STOXX Europe 600 Automobiles and Parts index fell 3.8% and Continental AG, a major supplier, saw an 8.4% drop in shares. Used Tesla Model 3 and Model Y vehicles saw the steepest depreciation of any cars in 2024, according to Fast Company’s analysis of CarGurus data. Model Y prices dropped 25.5%, while Model 3 prices fell 25% from January 2024 to January 2025. Comparatively, the Nissan Maxima only dropped 5.2%, and the Ford Mustang declined 5%. Full Top 10: Tesla Model Y, Tesla Model 3, Land Rover Range Rover, Jeep Wrangler 4xe, Chevrolet Express Cargo, Ford Transit Connect, RAM ProMaster, Land Rover Range Rover Sport, Chevrolet Bolt EV, and Ford Expedition, all with over 19% depreciation Google co-founder Sergey Brin is back and pushing Google DeepMind (GDM) teams to accelerate their progress toward Artificial General Intelligence (AGI) . In a newly released memo, Brin outli
Mon, March 03, 2025
Remembering The Alpha Dawg, Carvana Goes Franchise, Paul Buys An EV
Shoot us a Text. As we greet the first full week of March, we’re live from Charlotte, North Carolina with good friend Todd Caputo. Today, we pause and remember titan sales trainer Jim Ziegler, who helped thousands of dealerships during his 48 years in the industry. Plus, we cover Carvana’s acquisition of a CJDR store in Arizona and what it might mean in the future. Show Notes with links: Sad news this morning: Jim Ziegler, the larger-than-life trainer and industry icon, has passed away after a battle with brain cancer. Known as the “Alpha Dawg,” Ziegler spent decades shaping dealership floors into profit machines with his no-nonsense style and razor-sharp insights. His family shared the news on Facebook saying: “Jim passed away peacefully at home, surrounded by his beloved Debbie and family. ” With a career spanning 48 years, Jim turned green salespeople into closers and taught GMs how to hustle smarter. His seminars were part revival, part boot camp—equal parts inspiration and tough love. He pioneered training that blended old-school grit with new-school tech, pushing dealerships to adapt to the digital age while keeping the art of the deal alive. His company, Ziegler SuperSystems, was his proving ground. Love him or hate him, you couldn’t ignore him. Jim’s brash voice—online and IRL—called out BS in the industry, from shady F&I tactics to lazy management. His X posts were a masterclass in stirring the pot, and he never shied from a fight. Thousands of auto pros owe their paychecks to Ziegler’s wisdom. The “Alpha Dawg” may be gone, but his playbook’s still in the glovebox of every dealership worth its salt. Remember him today—then get back to work. He’d hate us slacking From the family’s post: “Jim may no longer be with us, but his influence, his lessons, and his impact will never leave us. His voice may be quiet now, but his words will be carried forward by the countless people whose lives he touched.” Carvana has taken a bold step into the new-vehicle market by acquiring Jerry Seiner Chrysler-Dodge-Jeep-Ram in Casa Grande, Arizona. This is a major shift for the online retailer, which has historically focused exclusively on used cars since its founding in 2013. Carvana plans to reopen the store on March 3, retaining all 41 employees. The move is described as a "small test" by Carvana, which stated: "We don’t expect it to have any noticeable impact to our results for the foreseeable future.” This experiment follows a path previously trodden by competitor CarMax, which owned new-vehicle franchises until divesting them in 2021. "We are excited to join the Stellan
Sat, March 01, 2025
This Dealer Is Creating Everyday Heros With CPR Kit Donations
Shoot us a Text. Today, Nathan and Chris take over the show to talk about how the Rick Case Auto Group is equipping people in their community to be everyday heroes through a donation of CPR learning kits to a local hospital. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 28, 2025
More Tariffs Incoming, Ford Ditches Regional EV Centers, ChatGPT 4.5
Shoot us a Text. It’s the last day of the month, and we’ve got the one and only Steve Greenfield of Automotive Ventures hopping in as a co-host! Today, we’re talking about President Trump saying that the Mexican and Canadian tariffs are back on and more tariffs are coming for Chinese imports. Plus, Ford is closing regionals centers for stocking and distributing EVs and OpenAI has released its latest model, ChatGPT 4.5. Show Notes with links: The U.S. will impose an additional 10% tariff on Chinese imports next week, doubling the 10% duty placed earlier this month. President Trump also confirmed 25% tariffs on Mexican and Canadian goods will take effect March 4, citing a lack of progress in combating fentanyl smuggling. The Mexico and Canada tariffs were previously delayed for 30 days, but Trump says no further reprieve will be granted. China has retaliated against previous U.S. tariffs and is expected to do so again. Beijing has not made an offer to curb fentanyl-related exports, which Trump’s administration sees as key to lifting tariffs. Xi Jinping seeks a broader trade agreement but has yet to propose terms that would satisfy the White House. Ford Motor Co. is scrapping its plan to stock and distribute electric vehicles (EVs) through regional inventory hubs , a pilot initiative that faced resistance from dealers. The automaker initially aimed to store unsold EVs at 21 “rapid replenishment centers” across the U.S., delivering them to dealerships within two weeks of a customer order. However, slow adoption and logistical issues prompted Ford to revert to a traditional wholesale model. Dealer resistance played a key role, as the separate sales process made EV inventory less visible to consumers. Inventory visibility issues meant unsold vehicles weren’t listed on dealer websites or third-party marketplaces like Cars.com. Dealer complaints included a lack of window stickers and limited trim/package comparisons, making it harder to sell EVs effectively. Ford executive Mike O’Brien stated: “We think the pilot, from an operational perspective, was a big success. That being said, we listen to our dealers. It is a little tricky to have two different [sales] methodologies.” OpenAI has officially launched GPT-4.5 , its largest and most knowledgeable model yet, though it falls short of being a frontier model. The new system improves upon GPT-4’s computational efficiency by 10x and reduces halluc
Thu, February 27, 2025
Moreno’s Auto Manufacturing Bill, GM’s Stock Buy Backs, Vegas PD’s Cybertrucks
Shoot us a Text. As the month nears its close, we’re talking about Senator Bernie Moreno going to bat for the auto industry with a new bill. Plus, GM is raising its stock dividends while doing a new buy back and the Las Vegas PD debuts a fleet of Cybertrucks given to them by an anonymous donor. Show Notes with links: Sen. Bernie Moreno (R-OH), a former auto dealer, is introducing the “Transportation Freedom Act” , a bill aimed at repealing federal emissions rules, reducing regulations, and providing tax breaks for U.S. automakers. The bill seeks to eliminate EPA tailpipe emissions rules and block California’s zero-emission vehicle mandate. It offers a 200% tax deduction on wages paid to U.S. auto workers for automakers that keep at least 75% of production domestic, up to $150,000 per worker, and blocks companies from using the money they save for stock buybacks. Moreno’s bill would end “arbitrary” CAFE fuel standards and replace them within six months with new, achievable regulations that align with consumer demand. GM, Stellantis, Toyota, NADA, the Alliance for Automotive Innovation and American Trucking Associations back the legislation. Moreno: “Thanks to liberal bureaucrats who want to mandate what cars Americans can drive, states like mine are riddled with car lots filled with expensive EVs people simply don’t want and dormant factories that once employed millions of American workers. The only winner is China.” GM is doubling down on returning value to shareholders, announcing a 25% dividend increase and a new $6 billion share buyback program. This move, which sent shares up 6%, comes as the automaker looks to balance investor returns with EV investments. GM will repurchase $2B in shares by mid-2025, with the remaining $4B at its discretion and the quarterly dividend will rise from 12 to 15 cents per share, effective April 2025. GM repurchased 87M shares in Q4 2023, completing a previous $10B buyback. GM projects a net income of $11.2B to $12.5B for 2025, with $10B-$11B in capital spending as it works to narrow EV operating losses by $2B. The Las Vegas Metropolitan Police Department (LVMPD) is bringing some futuristic flair to law enforcement , announcing the addition of 10 Tesla Cybertrucks to its patrol and SWAT fleets. But the real mystery? The trucks were entirely donated by an
Wed, February 26, 2025
Tesla Takedown, Group 1 Grows, VDub Charges Forward
Shoot us a Text. Today, Paul and Kyle are coming to you live on location from Paul’s office! We’re talking about how Group 1 grew in 2024 through $1.3B in acquisitions, a new face on the top 5 best-selling EVs and how grassroots is trying to take Tesla down. Show Notes with links: Group 1 Automotive made waves in 2024, dropping $1.3 billion to acquire 68 dealerships across the U.S. and U.K. The move adds $3.9 billion in annual revenue and solidifies the company's aggressive expansion strategy. The acquisitions spanned six major deals from Southern California to London. Major brands acquired include Lexus, Honda, Mercedes, BMW, Toyota, Porsche, Land Rover, and Audi. A key purchase was the $517 million acquisition of Inchcape’s 54 U.K. stores, adding $2.7 billion in revenue. The company also sold off select U.S. dealerships, including a Buick-GMC store in Massachusetts and a Subaru dealership in New York. CEO Daryl Kenningham: “Our ability to acquire outstanding brands in desirable markets is because we perform well on the OEM eligibility metrics.” After a rocky 2024, the Volkswagen ID.4 is making a triumphant comeback. Following production halts due to a recall, sales of the electric SUV are now skyrocketing, making it the third best-selling EV in the U.S. last month. VW sold 4,979 ID.4s in January 2025, marking a 653% increase from the previous year. The ID.4 now ranks #3 in U.S. EV sales, trailing only the Tesla Model Y and Model 3. The top five best-selling EVs—Tesla Model Y, Tesla Model 3, VW ID.4, Tesla Cybertruck, and Honda Prologue—accounted for 54% of total EV sales. Over 102,200 EVs were sold in the U.S. in January, up 30% year-over-year. VW is offering aggressive discounts on 2024 models, with leases as low as $189/month. Tesla showrooms across the U.S. are becoming flashpoints for protests as demonstrators rally against Elon Musk’s actions. The #TeslaTakedown movement has gained traction, with over 65 events scheduled through March. Protesters in New York’s Meatpacking District hurled insults at passing Teslas, calling them “uncool” and “major loser” cars. The movement took off on Bluesky, a social media competitor to Musk’s X, and has since gone viral. Demonstrations started in Maine, Massachusetts, New York, California, and Colorado, but have now spread internationally. The protests lack a central leader but have been ampli
Tue, February 25, 2025
Michael Cirillo on the Toronto Auto Show, EV Charger Cyberattacks, Apple’s $500B Investment
Shoot us a Text. Today we’ve got guest host Michael Cirillo of the Dealer Playbook talking about his experiences at the Toronto Auto Show. Plus, we talk about a new report showing EV charger cyberattacks are on the rise and how Apple is investing $500B in AI with a specific focus in Detroit. Show Notes with links: Cyberattacks on automotive and smart mobility products surged 39% in 2024, with electric vehicle (EV) charging infrastructure emerging as a major target, according to Upstream’s 2025 Automotive & Smart Mobility Global Cybersecurity Report. 409 cyberattacks were recorded in 2024, up from 295 in 2023. Attacks on EV charging stations jumped from 4% in 2023 to 6% in 2024, with 59% of them having the potential to affect millions of devices. Hackers target EV chargers for data theft, fraud, and ransom payments, with nearly 75% of attacks disrupting charging services. Researchers have also demonstrated that hacking EV chargers could disrupt entire grids. In 2024, 59% of EV charging cyberattacks had the potential to impact millions of devices, while 37% could have affected thousands, according to Upstream. Mozilla’s 2023 research found all 25 major automakers collected excessive data, raising privacy concerns. Shira Sarid-Hausirer, Upstream VP of Marketing: “It’s not necessarily the number of assets, it’s the connectivity and the fact that they’re all interconnected that increases the risk dramatically.” Apple is expanding its U.S. footprint with a $500 billion U.S. investment plan , which includes 20,000 new jobs, a server factory in Texas to support Apple Intelligence and a new Apple Manufacturing Academy in Detroit. Company engineers at the Detroit center will train local businesses and workers in AI and smart manufacturing techniques. Apple is also doubling its Advanced Manufacturing Fund to $10 billion, supporting high-tech manufacturing across the U.S. Apple's announcement followed a meeting between CEO Tim Cook and President Donald Trump as the company seeks to mitigate the impact of Trump’s trade tariffs, including a 10% tariff on Chinese imports and a potential 25% tariff on chips. CEO Tim Cook: "We are bullish on the future of American innovation and proud to build on our long-standing U.S. investments." Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most r
Mon, February 24, 2025
Buy-Sell Market Outlook, Ford Welcomes New Media, In-N-Out Employee Satisfaction
Shoot us a Text. On this last week of the month, we’re looking at the state of the automotive M&A market and what dealers can expect for the rest of the year. Plus, we cover how Ford is adopting a new media and press strategy, and look at how In-N-Out cracked the top 10 of Best Large Employers. Show Notes with links: The dealership buy-sell market is expected to stay active in 2025. Normalizing store profits could make buyers more cautious in finalizing transactions, but top-performing stores in desirable markets will still fetch high valuations. Political expectations, including Donald Trump’s presidency, along with lower dealership pricing and aging owners looking to sell, are fueling the market. Last week, we reported on Asbury Automotive Group acquiring New England’s Herb Chambers Cos. for $1.34 billion in one of the largest deals in recent history. The 2025 Dealer Outlook Survey found that 56% of respondents are not planning to buy or sell this year, while 19% plan to buy, and 4.4% plan to sell. Automotive News tracked at least 349 buy-sell transactions in 2024, down from 382 transactions in 2021, a peak year. “I’m definitely still getting as many offerings to look at as I’ve gotten the past two years,” said Randy Hoffman, COO of Ed Morse Automotive Group, Ford is shaking up its media strategy by replacing its traditional press center with "Ford From the Road", a new platform designed to cater to the growing influence of content creators over mainstream media. The "From the Road" channel prioritizes videos, photos, and articles—some created by Ford, others sourced from digital creators and influencers. Traditional press releases remain available but are now tucked away in a separate tab, signaling a major shift away from legacy media formats. A Pew Research Center study found that 21% of U.S. adults regularly consume news from influencers—jumping to 37% among adults under 30. Ian Cohen, Ford’s head of creative and content, explains: “We’re entering this era of [consumers] building [their] own niche content and channel ecosystems.” This comes as the Trump administration is opening the White House briefing room to influencers and podcasters, with thousands of applicants to the “new media” seats. In-N-Out Burger has been named one of America’s Best Large Employers , ranking No. 8 on Forbes’ annual list, ahead of corporate giants like Apple and NASA. The ranking is based on employee surveys evaluating workplace satisfac
Sat, February 22, 2025
A Dealer Trekking Across the Sahara For Charity
Shoot us a Text. Today on the show, Paul and Kyle are joined by Head Writer Chris Reeves. They discuss the challenges of the F&I office while Chris explains a meme that appeared in a recent edition of the Daily Pushback Email. Then they share the story of Allison Prowse who is walking across the Sahara for breast cancer awareness. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 21, 2025
Rivian and Carvana Earnings, Supercharger Wait Queue, Kia’s Modular PV5
Shoot us a Text. Friday is upon us once again, and today we’re talking about Rivian’s first positive gross profit quarter, Carvana’s record quarter, how Tesla is instituting wait queues at Superchargers, and the design of Kia's new PV5 van. Show Notes with links: We could talk about tariff warnings, but we aren’t going to. We could talk about the ongoing Nissan saga and Moodys downgrading their stock to ‘junk status’ but we’re not going to. Instead…we’re going to talk about… Rivian hit a major milestone, achieving its first-ever positive gross profit of $170M in Q4 2024, a $776M improvement from the previous year. Total revenue hit $1.73B, above expectations of $1.4B. Rivian cut per-vehicle costs by $31,000 year-over-year, helping it turn the corner. Despite this, the company still posted a $743M net loss for the quarter. Meanwhile, Carvana swung to a record $159M net income in Q4 They sold 114,379 used vehicles in Q4, a 50% increase year over year. Full-year revenue hit $13.7B, with a record $1.4B adjusted EBITDA. Stock dropped 12% after-hours due to concerns over softening per-vehicle margins. CEO Ernie Garcia “In 2024, Carvana became the most profitable public automotive retailer in U.S. history as measured by adjusted EBITDA margin while also resuming industry-leading growth,” Tesla’s Supercharger network is the best in the game, but with increased usage from both Tesla and non-Tesla EVs, long wait times have become a problem. After a viral altercation at a Supercharger, Tesla is finally launching a virtual queue system in Q2. Tesla will roll out the queue at select Superchargers nationwide, aiming to improve the experience for the ~1% of users who experience wait times. The viral video shows two Tesla owners arguing over a charging spot, highlighting the need for a structured waiting system. Tesla has not provided details on how the queue system will work, but a broader rollout is expected later this year if feedback is positive. The company continues to expand its Supercharger network by over 20% annually to meet growing demand. Tesla in a statement said, “Goal is a net customer experience improvement,” Kia has revealed the exterior design of its PV5, the first EV under its "Platform Before Vehicle" (PBV) brand. Designed to compete with electric vans like the VW ID Buzz and Ford E-Transit, <a href='https://www.theverge.com/news/61671
Thu, February 20, 2025
Nikola Files For Bankruptcy, Slick Rick Gets A Ride, Adults Ordering Kids Meals
Shoot us a Text. On this Thursday, we’re covering how EV/hydrogen truck maker Nikola is filing for bankruptcy, how West Herr Auto Group gifted Slick Rick from the Buffalo Bills mailroom a car, and how kids meals are becoming something everyone orders. Electric truck startup Nikola, once a Wall Street darling valued higher than Ford, has filed for bankruptcy , joining other EV-makers like Fisker, Lordstown Motors and Electric Last Mile Solutions. Founded in 2015, Nikola promised a hydrogen-fueled revolution for trucking, securing billions in investments from GM, Bosch, and others. In 2020, short-seller Hindenburg Research accused Nikola of faking its truck technology, revealing a promotional video showing a truck rolling downhill with no powertrain. Founder Trevor Milton resigned amid fraud allegations and was later convicted in 2022, receiving a four-year prison sentence. Despite shifting focus to hydrogen fuel cell trucks, Nikola produced only 235 vehicles, amidst supply chain issues, rising costs, and an underdeveloped hydrogen fueling network. CEO Steve Girsky blamed economic conditions, stating, “Our very best efforts have not been enough to overcome these significant challenges.” When quarterback Josh Allen gave his MVP acceptance speech last week, he made sure to shout out someone who rarely gets the spotlight— Roderick “Slick Rick” Morrow, a beloved mailroom employee at One Bills Drive. After Allen’s speech, Buffalo fans quickly fell in love with Slick Rick. One detail caught everyone’s attention: despite working for the Bills for over a decade, Rick had been taking the bus to work every day. West Herr Automotive Group knew they couldn’t just stand by on the sidelines, and on Valentine’s Day, they surprised Slick Rick with a Chevy Traverse—his very own set of wheels after years of relying on public transportation. “It feels like I’m living the dream, and I am!” Rick said, soaking in all the love from the Buffalo community. As fast-food prices continue to skyrocket, some savvy consumers have found a way to save money—by ordering kids’ meals . The trend has surged in popularity, with many adults opting for smaller portions at lower prices, sometimes even enjoying the bonus of a toy. Data from Circana shows a 28% increase in adults ordering kids’ meals in 2024 compared to 2019. Fast-food prices have surged by 39%-100% over the past decade, outpacing inflation (31%), with McDonald’s, Popeyes, and Taco Bell leadin
Wed, February 19, 2025
More Tariffs Incoming?, Hyundai and Kia US-Made EV Batteries, BYD Customers Push Back
Shoot us a Text. Happy Wednesday! Today, we’re looking at President Trump’s proposed 25% auto tariffs and the effects it could have. Plus, we’re covering how Hyundai and Kia are ramping up US battery and EV production, making those models eligible for the $7500 tax credit. Then, we’ll cover how Chinese customers are not happy with BYD. Show Notes with links: President Donald Trump has announced that 25% auto tariffs are coming soon —with more details expected April 2. The move aims to reshape global trade, but it could drive up vehicle prices and shake the industry. His cabinet is set to deliver reports on trade options by April 1, outlining tariffs on autos, pharmaceuticals, and semiconductors. Europe currently charges a 10% tariff on U.S. vehicle imports, while the U.S. only charges 2.5% on foreign cars—except for pickups, which already face a 25% duty. Trump also set a March 12 start date for 25% tariffs on imported steel and aluminum, which could raise costs for automakers. He has previously announced and delayed tariffs on Mexican and non-energy Canadian imports, keeping trade relationships tense. From a Steve Greenfield LinkedIn Post : “[These tariffs] puts a $240 billion trade route in the crosshairs, with some of the biggest brands in Germany and South Korea most exposed.” After months of uncertainty, Hyundai and Kia EVs are back on track to qualify for the full $7,500 federal tax credit . With a new U.S.-based battery supply chain, the automakers are positioning themselves for a big year in 2025 as they ramp up production of new models like the 2025 IONIQ 5 and IONIQ 9. Hyundai’s Georgia EV plant will start mass-producing the 2025 IONIQ 5 next month. SK Battery America (SKBA) will supply batteries made in the U.S., meeting the Inflation Reduction Act (IRA) requirements. The new Bartow County battery plant will produce enough batteries for 200,000 EVs annually and cut shipping times to the EV plant. Until full tax credit eligibility is restored, Hyundai is still passing the $7,500 credit through leasing, making the 2025 IONIQ 5 cheaper than a Toyota RAV4. Chinese automaker BYD is facing a wave of consumer complaints</a
Tue, February 18, 2025
Asbury Buys Herb’s 52 Franchises, Honda-Nissan Back On?, Amazon Physical Store Struggles
Shoot us a Text. Today, we talk about the massive $1.34 Billion acquisition of The Herb Chambers Companies by Asbury Automotive. Plus, there still could be a path forward for Honda and Nissan’s merger, and Amazon is not doing well in the physical retail space. Show Notes with links: One of the biggest dealership acquisitions in U.S. auto retail history is on the horizon as Asbury Automotive Group signs a definitive agreement to acquire The Herb Chambers Companies . This $1.34 billion deal includes 33 dealerships, 52 franchises, and three collision centers, adding to Asbury’s nationwide footprint. The acquisition represents $2.9 billion in revenue in 2024, making it one of the most significant transactions in the industry. Herb Chambers will retain ownership of Mercedes-Benz of Boston but will step into a Special Advisor role at Asbury. The deal is expected to close late in Q2 2025, pending customary approvals. Asbury’s CEO David Hult praised the move, saying, “Herb is an icon in Boston, and he has built a world-class organization.” Herb Chambers reflected on the sale: “As I look back on the last 40 years in business, I do so with immense pride, and as I look forward, I will do so with great satisfaction knowing what we built together will be in trusted hands,” The possibility of Honda and Nissan merging to form the world’s fourth-largest automaker is back on the table—but with one major condition: Nissan CEO Makoto Uchida must step down, according to the Financial Times. Talks to create a $60 billion company collapsed last week, deepening Nissan’s struggles amid hybrid shortages and Chinese competition. Renault and Nissan’s board are reportedly pushing Uchida to exit, with informal discussions on his departure already underway. Honda CEO Toshihiro Mibe has ruled out a hostile takeover but is open to renewed negotiations under new Nissan leadership. Mitsubishi shares jumped 8.6% on the news, as a Honda-Nissan deal would stabilize its position, reducing its dependence on Nissan. Analyst Tatsuo Yoshida sees a potential Honda-Nissan partnership as a win-win, but warns that Nissan must first “get its act together.” Despite its dominance in e-commerce, Amazon continues to stumble in physical retail , as detailed in a Wall Street Journal report. From Amazon Go to Amazon Style, the company has repeatedly failed to make stores work, raising que
Mon, February 17, 2025
Negative Equity Hits 25% of Trades, Used Car Crunch, Retention Wins
Shoot us a Text. Shout out to all the people selling cars on this President’s Day! Today, we’re talking about the rising challenges of negative equity on trade-ins hitting an average of $6800 and the used car supply drying up. Plus, we’ll look at a dealer who’s hitting new records by focusing on customer retention. The average negative equity on new-vehicle trade-ins reached a record high in Q4 2024, increasing by nearly $800 compared to the previous year, according to Edmunds. The average amount owed on underwater trade-ins was $6,838 in Q4 2024, up from $6,054 in Q4 2023. While 25% of trade-ins had negative equity—up from 20% a year earlier—it remained lower than the 33% recorded in Q4 2019, (avg of $5,658 in amount owed) Edmunds reported that 25% of negative-equity trade-ins had at least $10,000 rolled over, and 8.5% owed at least $15,000. Mark Pregmon, general manager of consumer lending at USAA, stated that the concern is "not the frequency, it’s the severity" of negative equity amounts. A combination of pandemic-era supply chain disruptions, fewer lease returns, and rising interest rates has created a long-term supply squeeze on used cars . Analysts predict these conditions will persist for at least two more years, keeping the used-car market competitive and expensive. Used-car prices increased 2.2% from December to January, while new-car prices remained flat, contributing to overall inflation concerns. The number of three-year leases ending in 2024 is expected to drop 23%, reaching a decade low and significantly reducing the supply of off-lease vehicles—typically a major source of used-car inventory. With used-car prices still high and financing costs rising, many car owners are opting to repair their current vehicles rather than upgrade. “They are spending more money on repairs, but their monthly payments are less,” said Tom Maoli, owner of Celebrity Motor Car. New-car supply has improved to 63 days, while used-car inventory has tightened to 48 days, keeping preowned prices high. At Damian Lillard Toyota in McMinnville, Oregon, dealer principal Brian Sanders has built a business model focused entirely on customer retention rather than maximizing short-term profits. Since taking over the underperforming store in 2020, Sanders has led it to the highest Toyota Loyalty Engagement percentage in the country, proving that prioritizing long-term relat
Sat, February 15, 2025
ASOTU CON Is A Meme Now
Shoot us a Text. Today, Paul and Kyle are joined on the show by Head Writer Chris Reeves and they look just about 90 days into the future, actually 86, because we're looking ahead to ASOTU CON and talking about what people can expect. We make a comparison to ASOTU CON and memes and talk about some of the content and concepts we're planning on covering in the sessions. You can find more information and get your tickets by visiting asotucon.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 14, 2025
How Chinese OEMs Cut Costs, Toyota Ups Inventory, Valentine’s Day Candy History
Shoot us a Text. Happy Super Bowl parade day, Eagles fans! Happy Valentine’s Day to the rest of you! Today, we’re breaking down how Chinese OEMs are able to build lower cost vehicles with more speed than traditional OEMs. Plus, we look at Toyota’s plans for more inventory in 2025 and a history of Valentine’s Day candy. Show Notes with links: A teardown analysis by Caresoft Global Technologies reveals that Chinese automakers are rapidly surpassing the Detroit 3 in cost efficiency, speed, and innovation . While legacy automakers struggle with outdated manufacturing methods, Chinese brands are cutting costs, streamlining production, and expanding aggressively into global markets. Detroit automakers use 12 rare-earth magnets and steel brackets to secure headliners, while Chinese automakers achieve the same result with inexpensive adhesive strips; similarly, Detroit 3 EVs rely on costly aluminum braces, whereas Chinese EVs use lighter, more affordable plastic or thin metal brackets. Meetings with Chinese automakers take one week compared to two months with German OEMs and nine months for a purchase order from a legacy automaker. At a Caresoft presentation in China, 700 employees showed up on a Saturday—a level of commitment rarely seen in the U.S. Toyota is pushing for increased production and sales in 2025 after a strong 2024, despite supply chain hurdles and stop-sales. The company saw record accessory sales, nearly record parts sales, and a 3% increase in U.S. light-vehicle sales, totaling 1.99 million units. Toyota built over 2 million vehicles in North America in 2024 and plans to increase output in 2025 to improve inventory levels. Toyota dealers have adapted to a lean inventory, high-throughput model, preselling vehicles and managing allocations efficiently. Hybrids and plug-in hybrids made up 43% of U.S. sales in 2024, up from 29% in 2023. Toyota expects 50%+ in 2025, rising to 60-70% long-term as its North Carolina battery plant boosts hybrid production. After weather disruptions at the NADA Show in January, Toyota executives and retailers met virtually this month, where brand head Dave Christ emphasized the company’s focus for the year: “Our message [for 2025] is very simple: It’s build more and sell more.” Valentine’s Day remains a battle between flowers and candy, with 56% of celebrants purchasing candy and 40% buying flowers in 2024. Despite candy's popularity, flower sales ($2.9B) edged out candy sales ($2.5B). Over the years, candy brands have introduced creative and sometimes bizar
Thu, February 13, 2025
Nissan Nose Dives Even More, Less Screens = More Affordable, Hendrick Bids For Red Cross
Shoot us a Text. Today on the show, we’re covering Nissan’s desperate plans to execute a turnaround, announcing plant closures and more. Plus, OEMs in Europe are matching affordability by removing infotainment systems, and Rick Hendrick sets a record auto auction bid for a great cause. Announcement New Episode of Auto Collabs Live from Public Policy Day: John O’Donnell of WANADA on the contribution of car shows to car culture. New Episode of NADA Show sessions with Suzanne Reimer of Lotlinx Upcoming ASOTU Edge Webinar with Matt Murray of Widewail: Reputation Management Class: Benchmarks, Strategies and how Dealers are Leveraging AI in 2025. Next Wednesday January 19 at 2PM EST ASOTUCON.com is live! Dealer Tix are $499, IP tix are $1499 Show Notes with links: Nissan CEO Makoto Uchida is taking drastic steps to pull the automaker out of financial trouble, announcing factory closures, job cuts, and executive downsizing in a renewed turnaround plan. The move comes as Nissan reports its second straight quarterly net loss, forcing a reevaluation of its strategy. The company’s latest financials show an operating profit drop of 78% and a net loss of ¥14.1 billion ($89.5 million) in the last quarter. Nissan plans to close three factories by 2027, starting with its Thailand plant in April. U.S. production shifts will be cut at the Smyrna, Tenn., and Canton, Miss., plants. The company is slashing 9,000 jobs worldwide, including 6,500 in manufacturing and has also returned to stair-step dealer incentives, a practice it previously vowed to eliminate. Nissan recently pulled out of merger talks with Honda, citing concerns over autonomy. CEO Makoto Uchida said, “Can we continue to survive as a standalone company? We’ve been discussing that for some time now. This is a big subject matter,” With rising vehicle costs, automakers are looking for ways to make cars more affordable. While European brands like Stellantis are reducing costs by eliminating infotainment screens , U.S. consumers currently have no such option. Some automakers are exploring "de-contenting" existing models to lower production costs as eliminating in-car screens can reduce costs associated with wiring, sensors, and software development. European models like the Fiat Grande Panda Pop and Citroën Ami replace traditional infotainment systems with simple phone mounts and USB ports. Many older luxury vehicles, such as the Porsche Cayenne and Audi A3, lack modern pho
Wed, February 12, 2025
BYD Bets on Autonomy, Hyundai Goes Solid-State, Watching Youtube On TV
Shoot us a Text. Happy hump day, auto industry! Today, we’re covering how BYD is integrating premium autonomous driving tech into its entire lineup of cars. Plus Hyundai is getting in on solid-state EV batteries and Youtube is more popular on TVs than on phones. Show Notes with links: Chinese automaker BYD is going all-in on autonomous driving as it ramps up its challenge to Tesla’s EV dominance. BYD announced that its "God's Eye" self-driving tech, featuring autonomous overtaking and remote parking, will be standard across all models. The ultra-affordable BYD Seagull, priced at just over $9,500, will also receive high-level autonomous features. The automaker’s stock hit an all-time high following the announcement, climbing 4% on the Hong Kong Stock Exchange. From the Daily Pushback Email team: “The price gap is staggering. BYD’s smart-equipped Seagull? $9,555. Tesla’s cheapest China-made model? $32,000. Ford’s entry-level Mustang Mach-E? $39,995” “Affordability and reliability move units—and Chinese EVs are delivering both at a pace that should make U.S. automakers nervous. Two out of three new cars sold in China this year will have some level of self-driving tech, according to industry estimates.” Hyundai is making a major move in the EV battery race with its upcoming all-solid-state battery pilot line. The advanced tech, set to debut in March, could significantly boost range, charging speeds, and energy density, positioning Hyundai as a leader in the evolving EV landscape. The company is investing over $9 billion in EV battery development over the next decade, including LFP, NCM, and all-solid-state options. Hyundai aims to mass-produce all-solid-state batteries by 2030, with prototype EVs featuring the technology expected this year. General Motors and other industry leaders are expected to attend the opening ceremony, signaling growing partnerships. Other automakers are racing to develop solid-state batteries, with Honda revealing a solid-state pilot line of EVs last November, and Toyota aiming for commercialization by 2027-2028. YouTube is officially more popular on TVs than on phones, with over 1 billion hours of content streamed daily on television screens. As YouTube solidifies its dominance in streaming, new features continue to blur the line between traditional TV and digital video. YouTube remains the most-watched streaming service in the U.S. for the second ye
Tue, February 11, 2025
Stellantis Tweaks Direction, CFPB To Shut Down?, No More Pennies
Shoot us a Text. On this Tuesday, we take a look at how Stellantis is adjusting to live post-Carlos Tavares and what that means for its brands. Plus, a closer look at the Trump administration’s fight against the Consumer Financial Protection Bureau and the potential end of the United States penny. Show Notes with links: Stellantis is making a significant course correction across its North American brands, rethinking its aggressive push toward full electrification. As their search for a CEO continues, the company is emphasizing consumer choice, with previously planned EV models now on hold or outright canceled. Alfa Romeo has abandoned its all-electric goal by 2027, instead opting for a multi-energy strategy. Chrysler put its upcoming EV crossover on hold and plans to refresh the Pacifica with hybrid and electric options. Dodge kept the Hemi Hellcat roaring in the Durango for 2025, even as it rolled out the electric Charger Daytona. Fiat saw a boost in U.S. sales after launching the redesigned 500e but isn’t chasing volume. Jeep kicked off a $3.2B product blitz, including its first EVs for North America: the Wagoneer S and Wrangler-inspired Recon. Maserati is sticking to its plan for an all-electric future by 2028, but changes are expected Ram delayed the 1500 REV electric pickup to 2026, favoring the range-extending 1500 Ramcharger instead. Hundreds of demonstrators gathered outside the U.S. Consumer Financial Protection Bureau (CFPB) in Washington, D.C., after the newly installed acting director, Russell Vought, ordered all agency employees to stay home. The move is part of a larger effort by the Trump administration and Elon Musk to dismantle the consumer watchdog. Musk’s Department of Government Efficiency took control of CFPB systems, halting oversight of financial companies. Vought, a longtime critic of the agency, said he will seek no new funding, leaving the CFPB to operate on its $700M reserves. The CFPB targeted dealer-arranged financing in 2013, arguing that interest rate markups disproportionately harmed minority buyers, but auto dealers successfully lobbied Congress to repeal the rule in 2018. Under Democratic leadership, the agency later ramped up oversight of auto lenders, focusing on junk fees, repossessions, and credit reporting violations. The American penny, a staple of pocket change since 1792, may soon become history. President Donald Trump has ordered the U.S. Mint to stop producing new pennies , citing the cost of making them—nearly four times their face value—as wasteful government s
Mon, February 10, 2025
The Real Super Bowl Winners, Rivian Opens Orders for Delivery Van, Free Coffee Today
Shoot us a Text. We’re flying with the Eagles after their Super Bowl win yesterday, but we know that the real winners are Vehicles For Change because of the $5K+ donations pledged through the Super Bowl Charity Smackdown. We talk about the success of the automotive ads, plus how Rivian has finally opened sales of its commercial delivery van, and Starbucks giving away a little extra bit of caffeine to help people make it through the day. Show Notes with links: MTC Superbowl Charity Totals: $5,169 total “bet”, Chiefs: $1521, Eagles: $1973, People who pledged regardless of who won: $1675 Donations to benefit Vehicles for Change, NCM donating a car, Paul packing up jerseys The Auto Industry had its moments in the big game with both Ram and Jeep having strong showings. The Ram ad featured actor Glen Powell in a Goldilocks take while Harrison Ford’s Jeep ad spoke used drivetrains and history with a unifying message around ‘freedom’ Jeep saw a 336% increase in website traffic on the site, while Wrangler 4xe new-vehicle pages got a 628% boost, while Wrangler pages had a boost of 555%. Also, a 344% lift for Gladiator, 166% lift for Grand Cherokee L, and 87% lift for Grand Cherokee Ram saw a 436% increase after their ad. Rivian’s electric delivery van is f inally available for fleets of all sizes, marking the end of its Amazon exclusivity deal. Rivian’s commercial van, previously called the “Electric Delivery Van,” is now the “Rivian Commercial Vehicle” (RCV), signaling broader utility beyond deliveries. Two models are available: the RCV 500 ($79,900) and the larger RCV 700 ($83,900), with estimated ranges of 161 miles and 153 miles, respectively. The vans remain business-exclusive, meaning they must be registered to a company, keeping them out of the hands of vanlifers (at least for now). Rivian will begin taking orders this month, with first deliveries set for April. Starbucks is stepping up to help Super Bowl partiers recover with a free coffee offer on the Monday after the big game. Whether you’re a loyal rewards member or a last-minute sign-up, you can grab a free tall brewed coffee on February 10. U.S. rewards members can get free tall brewed coffee today, with the offer applying to both hot and iced brewed coffee. Members
Sat, February 08, 2025
How The Super Bowl Is Going to Make A Difference for Vehicles For Change
Shoot us a Text. On this Saturday before the Super Bowl, we're talking about the More Than Cars Super Bowl Charity Smack Down. The auto industry is getting competitive, but this time, it's not about sales—it's about football and charity . ASOTU and a team of industry partners are turning the Eagles vs. Chiefs Super Bowl showdown into a friendly (but fierce) wager for Vehicles for Change, an organization that trains formerly incarcerated individuals as ASE-certified techs and provides free cars to those in need. How it works: Go to ASOTU.Com/superbowl - Pick a team, pledge a donation—and if your team loses, you donate. Winners get bragging rights for a year, but donating even if you win makes you even cooler. Trash talk is encouraged (but keep it classy). Industry leaders, including Danny Zaslavsky, Paul Anton Faletti Jr., and Brandiss Drummer, Paul and David Regn are putting their pride on the line with jersey bets and chants. Thanks to Steve Greenfield, Automotive Ventures, NCM Associates, VINCUE, Stream Companies and Vehicles for Change for helping bring all this together really quickly Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 07, 2025
MTC Super Bowl Charity Smackdown is LIVE!
Shoot us a Text. It’s the Friday before the Big Game, and with Paul and Elena Ciccotelli hosting, that means we’re wearing green. Today, we’re covering the Super Bowl Charity Smackdown to support Vehicles for Change and welcome some special guests to talk about it. Plus, we take a look at Ram’s upcoming Super Bowl ad. Show Notes with links: The auto industry is getting competitive, but this time, it's not about sales—it's about football and charity . ASOTU and a team of industry partners are turning the Eagles vs. Chiefs Super Bowl showdown into a friendly (but fierce) wager for Vehicles for Change, an organization that trains formerly incarcerated individuals as ASE-certified techs and provides free cars to those in need. How it works: Go to ASOTU.Com/superbowl - Pick a team, pledge a donation—and if your team loses, you donate. Winners get bragging rights for a year, but donating even if you win makes you even cooler. Trash talk is encouraged (but keep it classy). Industry leaders, including Danny Zaslavsky, Paul Anton Faletti Jr., and Brandiss Drummer, Paul and David Regn are putting their pride on the line with jersey bets and chants. Thanks to Steve Greenfield, Automotive Ventures, NCM Associates, VINCUE, Stream Companies and Vehicles for Change for helping bring all this together really quickly Stellantis is the only automaker with a Super Bowl ad this year, and they’re going big with Ram with a modern twist on “Goldilocks and the Three Bears” starring Glen Powell. Directed by David Leitch ("Deadpool 2," "John Wick"), the ad blends humor, action, and adventure. Powell tests out the 2025 Ram 1500 Ramcharger, Ram 2500 Rebel, and Ram 1500 RHO, picking the one that’s “just right” for the job. The spot features fire-breathing dragons, volcano jumps, and a little bedtime storytelling. Stellantis says the message is about power of choice—gas, hybrid, or electric, depending on your needs. Ram is also releasing merch inspired by the ad, including plush dragons, T-shirts, and even dragon-wing hot sauce. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ <p
Thu, February 06, 2025
Honda-Nissan Merger Collapsing, Kazakhstan Invests In Greenfield, Volkswagen <$20K EV
Shoot us a Text. Today we welcome Steve Greenfield of Automotive Ventures back to the show to talk about the Honda-Nissan merger coming unraveled, how Kazakhstan’s Astana Motors is investing $3.5M into Steve Greenfield’s Automotive Ventures, and Volkswagen's latest affordable model to rival Chinese OEMs. Show Notes with links: The long-anticipated Honda-Nissan mega-merger is on the verge of collapse after Nissan’s board rejected Honda’s push to make it a subsidiary. The move was seen by Nissan executives as a violation of the original merger terms, which had envisioned a holding company structure rather than an outright acquisition. Honda wanted faster reforms, believing that full control would force quicker decision-making at Nissan, whose restructuring has been slow since its 2023 losses. Nissan CEO Makoto Uchida personally traveled to Tokyo on Feb. 6 to inform Honda CEO Toshihiro Mibe that Nissan would oppose the deal. Nissan’s restructuring plan—its third since 2019—focuses on job cuts, reduced production, and cost savings, but Honda was frustrated with the pace of change. If the merger collapses, Nissan may return to a tech-sharing deal with Honda or explore new partners like Foxconn, while Honda could still attempt a hostile takeover by offering ¥500-600 per share to entice shareholders. Both OEMs sell under 4 million vehicles annually, and are under pressure to scale up or risk falling behind global competitors like Hyundai, Toyota, and Volkswagen. Back in December, we heard about Steve Greenfield’s trip to Kazakhstan. Yesterday, Astana Motors’ founder and chairman, Nurlan Smagulov made a strategic move into the U.S. automotive technology scene with a $3.5 million investment in Automotive Ventures' Mobility Fund II. This collaboration is designed to provide Astana Motors with visibility into early-stage automotive startups and explore tech implementation back in Kazakhstan. Automotive Ventures has backed 39 mobility startups across three funds, focusing on seed-stage investments globally. The U.S. auto tech sector is booming, with American startups raising $56 billion in Q2 2024—a 57% year-over-year increase. MyVentures, Smagulov’s $20 million venture fund, has supported fintech, AI-driven software, and one of Kazakhstan’s first computer vision startups. Smagulov highlighted Greenfield’s expertise, stating, “If Steve invests in a startup, then in 99% of cases, it is destined for success.” Volkswagen is set to unveil a <a href='ht
Wed, February 05, 2025
Toyota (Still) Betting on Hybrids, Cruise’s Future, Ford’s Gas Powered EVs, Best EV of 2025
Shoot us a Text. We’re excited to get into this Wednesday with guest host Elena Ciccotelli of the EVs for Everyone podcast. Today, we’re covering Toyota’s battery investment in the US and China, the future of GM’s Cruise robotaxi program and how Ford is planning on integrating EVs with a gas-powered generator for extra range. Toyota is accelerating its electrification strategy in both the U.S. and China with a significant investment in battery production and a focus on hybrid vehicles. Toyota will begin producing batteries at its new North Carolina factory in April, initially for hybrid vehicles, before expanding to full EV production. The Liberty, N.C., plant will start with three battery lines for hybrids, adding a fourth soon after. By 2030, it aims for 30 GWh capacity. Toyota is launching a wholly-owned subsidiary in China to build Lexus EVs, with a Shanghai plant capable of producing 100,000 vehicles per year starting in 2027. Toyota CFO Yoichi Miyazaki emphasized the importance of hybrid vehicles, stating, “Demand for hybrid vehicles is quite strong in the United States… We will solidify our production by producing batteries for hybrid first.” The company is keeping a cautious eye on potential new tariffs from President Donald Trump, preparing by focusing on shorter product lead times and flexible strategies. Nearly 2 months after announcing they would no longer fund autonomous vehicle subsidiary Cruise, GM is officially shutting down its robotaxi operations, leading to mass layoffs including CEO Marc Whitten and several top executives. The layoffs impact nearly half of Cruise’s 2,100 employees, with affected staff receiving severance and benefits through April and LinkedIn Premium for a year to assist with the job search. GM has now fully absorbed Cruise, ending its robotaxi ambitions to focus on its hands-free driving system, Super Cruise, and future autonomous consumer vehicles. The shutdown follows an October 2023 safety scandal where a Cruise robotaxi ran over and dragged a pedestrian, leading to permit suspensions in California. Cruise had been working on safety upgrades, including "Project Rhino," a sensor system aimed at preventing incidents like the 2023 crash. Ford is betting on Extended Range Electric Vehicles (EREVs) —EVs with a gas-powered generator for extra range. This move aligns with Ford’s focus on meeting consumer demand for EV efficiency without sacrificing range.
Tue, February 04, 2025
Live with Global Automakers of Canada on Tariffs, SC Proposes DTC Bill
Shoot us a Text. As tariff threats come and go, we’ve got you covered with the latest information. Today features the view from north of the border with President and CEO of Global Automakers of Canada David C Adams. Plus, we talk about a new South Carolina bill designed to let Scout go around franchise laws. Show Notes with links: President Donald Trump announced a temporary suspension of planned U.S. tariffs on Mexico after reaching an agreement with Mexican President-elect Claudia Sheinbaum. The deal includes Mexico deploying 10,000 National Guard troops to its northern border, with a primary focus on stopping fentanyl trafficking and further negotiations on security and trade. Trump had planned to impose 25% tariffs on all Mexican goods starting Feb. 4 but agreed to pause them in exchange for Mexico's commitment to increased border security. U.S. officials from the State, Treasury, and Commerce departments will lead further discussions, with Trump saying he will participate directly. Trump confirmed tariffs on Chinese imports would proceed as planned. U.S. tariffs on Canada are going to be postponed by 30 days as the two countries negotiate a border deal, Prime Minister Justin Trudeau of Canada said after finishing a second call with President Trump. Global Automakers of Canada (GAC) is the national trade association representing the Canadian interests of 15 of the world’s most respected automakers. David C Adams , President of the Global Automakers of Canada, joins the show now to talk about the evolving situation. In a statement issued on February 1st, Adams stated: “The United States and Canada aren’t just each others’ largest trading partners, but we actually build things together, not for each other,” said Adams. “There is no other industry where this is the case more than the automotive industry - where we have had sectoral free trade between the two countries since 1965.” South Carolina is making waves as a new bipartisan bill aims to allow direct-to-consumer EV sales. If passed, this could be a game-changer for Volkswagen-backed Scout Motors, which is set to build a massive $2 billion plant in the state. Current franchise laws ban direct-to-consumer vehicle sales—the new bill, the South Carolina Consumer Freedom Act, would change that, as the bill specifically applies to automakers that have never had a franchise dealership agreement. Dealers aren’t happy—
Mon, February 03, 2025
Tariffs Pressure Auto Production, Cybertruck Sales Dive, $8M Super Bowl Ads
Shoot us a Text. Welcome to the first week of February, and welcome to guest host Steve Greenfield of Automotive Ventures. Today, we’re discussing all the ramifications that President Trump's latest round of tariffs will have on the automotive industry. Plus, we cover Tesla’s plans to move more Cybertrucks and why the cost of Super Bowl ads is rising. A fresh round of tariffs signed by President Trump is sending shockwaves through the North American auto industry. With 25% duties on vehicles and parts from Canada and Mexico, and a 10% levy on Chinese imports, automakers and suppliers are bracing for rising costs, potential production shutdowns, and fierce retaliation from trade partners. The tariffs are set to go into effect on February 4, and Canada’s Prime Minister Justin Trudeau and Mexico’s President Claudia Sheinbaum have pledged retaliation, which could further escalate trade tensions. Prices of vehicles could increase by thousands, like the Chevrolet Silverado, GMC Sierra, and Ram 1500 (built in Mexico), the Toyota RAV4 and Tacoma (built in Canada/Mexico) and the Ford Mustang Mach-E, Bronco Sport, and Maverick (built in Mexico) John Bozzella, President for the Alliance for Automotive Innovation: “We support efforts to strengthen the U.S. auto industry, but across-the-board tariffs on Canada and Mexico will only increase costs, disrupt supply chains, and put jobs at risk. We want to work on solutions that achieve the president’s goals and preserve a healthy, competitive auto industry in America.” Tesla’s Cybertruck sales are falling flat , forcing the company to roll out heavy incentives—including free $6,000 wraps and new leasing options. With demand far below expectations, questions are mounting about whether the Cybertruck is turning into Tesla’s first major flop. Tesla launched Cybertruck leases in the U.S., starting at $750/month, a move typically reserved for vehicles with slowing demand. Buyers of Foundation Series Cybertrucks now get a free wrap worth $6,000 as Tesla struggles to clear inventory. Sales have been underwhelming—despite 1M+ reservations, Tesla has sold fewer than 40,000 units, with some analysts estimating that number may drop to 30K in 2025, far below its planned 250K annual capacity. With Super Bowl LIX just around the corner, advertisers are shelling out a record $8 million per 30-second spot . Some big names are sitting this one out—including most
Sat, February 01, 2025
What Chris and Kristi Learned at the 2025 NADA Show
Shoot us a Text. On this first day of the month, Paul and Kyle are joined by writers Chris Reeves and Kristi Canada to talk about the NADA Show that took place just a week ago. Chris talks about the Time Dealer of the Year presentation, and what he took away from keynote speaker Ryan Leak, plus what his 5-year-old learn. Kristi highlighted the philanthropic side of the show, seeing our good friends Vehicles For Change on the Live Stage, plus the Canine Companions presentation there as well. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, January 31, 2025
Paul and Kyle Go To Washington (And Make A Scene)
Shoot us a Text. Today, we’re coming to you from the Podcast Stage at Public Policy Day, recapping what we heard from Senators, industry experts and more. ASOTU took over the Main Stage with Adam Marburger of Ascent Dealer Services, Jim Ganther of Mosaic Compliance Solutions and Thomas Castriota, Chairman of NADA to talk about how dealers are solving problems for consumers. Thanks to Ascent Dealer Services for making our coverage possible. Watch for all the interviews to hit our social channels this next week. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, January 30, 2025
Is ASOTU Getting Political? Tesla Self-Driving Begins, App Unlock at CVS
Shoot us a Text. We’re rolling into the big conversations at the 2025 Public Policy Day, where industry leaders and lawmakers shape the future of auto. Plus, CVS is testing a new app feature to unlock products, and Tesla inches toward unsupervised self-driving—though Elon says don’t get too excited just yet. Show Notes with links: The press stage is set at ready to go at the 2025 Public Policy Day hosted by WANADA. The 2025 Public Policy Day at the Washington, D.C. Auto Show on January 30 features key industry leaders and policymakers. The day kicks off with a networking lunch, followed by opening remarks from John O’Donnell and a keynote discussion with Senator Bernie Moreno (R-OH) and Devon Haynie (U.S. News & World Report). Highlights include vehicle reveals from Stellantis (Dodge Charger Daytona, Jeep Wagoneer S) and Nissan (2025 Murano), plus an Aston Martin Vanquish presentation by Bouch Siaf. A fireside chat features Todd Inman (NTSB) and Dave Shepardson (Reuters), while Alex Kwanten presents the Best Cars for the Money Awards. Industry roundtables cover consumer insights (featuring Thomas Castriota, Paul J Daly) and tax/trade policy (Jennifer Safavian, Cody Lusk, Bill Long). The event closes with Michael Cottone (Volvo) and John Bozzella (Alliance for Automotive Innovation). The day concludes with an exclusive Sneak Peek Reception of the Auto Show, presented by Events DC. Elon Musk recently announced that Tesla has initiated "unsupervised self-driving" at its Fremont factory. However, this development is currently limited to vehicles autonomously navigating within the factory premises. Tesla released a video showing cars driving themselves from the production line to loading docks without human intervention. This internal application covers a 1.2-mile route on private factory roads at low speeds. Musk has previously set ambitious timelines for unsupervised self-driving, including a driverless cross-country trip by 2018, which have not been met. The current implementation is a step forward but remains far from the full autonomous driving capabilities promised to consumers. Musk's latest projection targets unsupervised self-driving in California and Texas by the second quarter of 2025. CVS is piloting a new feature in its app that allows customers to unlock anti-theft cabinets themselves, aiming to enhance the shopping experience. The feature is currently being tested in three New York City stores.
Wed, January 29, 2025
VW Bringing Manufacturing Stateside, Honda’s Sub $30K EV, iPhone Satellite Connection
Shoot us a Text. With 2 days left in January, that means there are only 2 days left to get discounted tickets to ASOTU CON! Today, we’re talking about VW potentially bringing manufacturing to the US to avoid tariffs, Honda planning to introduce a sub $30K EV in the US, and how iPhones can now text on the SpaceX Starlink satellite network. Show Notes with links: Volkswagen Group is exploring plans to build Audi and Porsche models in the U.S. if President Donald Trump imposes high tariffs on vehicle imports from Europe and Mexico. This proactive move aims to safeguard the brands from potential trade barriers that could significantly impact profitability. Unlike the VW brand, which already has U.S. production, Audi and Porsche models sold in the U.S. are currently imported, making them vulnerable to tariffs. VW’s Chattanooga plant, which produces the VW Atlas and ID.4, has excess capacity and could be expanded for luxury models. Another option is VW’s upcoming South Carolina plant for the Scout brand, which could also accommodate Audi production. A 10% tariff on European imports could reduce VW Group’s profits by 5-10%, while a 25% tariff on Mexican imports could result in a 15% hit, according to Moody’s. Honda is stepping into the affordable EV space with a sub-$30,000 electric vehicle that could hit U.S. dealerships as early as 2026. A third of Honda’s global sales are EVs and it aims to boost its U.S. EV presence. The new EV will be locally built in Ohio, starting with battery production, to reduce costs. It will be a part of the new Honda 0 Series and will follow Honda’s higher-end 0 Series SUV and sedan, expected to cost $50K–$60K. Honda sold over 33,000 Prologue SUVs last year, outperforming the Chevy Equinox and Cadillac Lyriq, despite sharing GM’s Ultium platform. The affordable EV could compete directly with GM’s next-gen Chevy Bolt, also slated for a 2026 launch at a similar price point. Apple's latest iPhone update gives T-Mobile users access to SpaceX’s Starlink network , marking a new era of connectivity. iOS 18.3 introduces support for SpaceX and T-Mobile’s direct-to-cell satellite texting, meaning text messaging via satellite in areas without cellular coverage The feature was previously limited to select Android devices, including Samsung models. Beta testers have begun receiving texts confirming access to satelli
Tue, January 28, 2025
CARS Rule Tossed, Make Meeting Recap, What You Need To Know About Deepseek
Shoot us a Text. After a much-needed rest day, we’re refreshed from the 2025 NADA Show! Today, we talk about the massive victory for car dealers as a US Appeals Court has tossed the CARS Rule. Plus, we recap the make meetings at NADA that were able to happen and download you on Deepseek, the AI disrupting big tech. Show Notes with links: A major legal victory for auto dealers comes as a U.S. appeals court strikes down the Biden administration’s FTC CARS Rule aimed at regulating dealer pricing and add-ons, along with a looming compliance burden. The 5th U.S. Circuit Court of Appeals ruled 2-1 that the FTC failed to follow proper procedures in creating the rule. The regulation, which was on hold pending legal challenges, would have required upfront pricing and banned certain add-ons deemed “junk fees.” NADA and TADA led the legal challenge, arguing the rule would add unnecessary complexity and cost to the car-buying process. NADA President Mike Stanton praised the decision as a “victory for the rule of law and a great outcome for consumers.” The make meetings at the NADA Show is the premier opportunity for dealers to meet with factory execs and discuss the year ahead—but the massive snowstorm kept 10 of 26 brands from making it to New Orleans. While some dealers were understanding, others were frustrated. For the brands that made it, key updates were shared. Stellantis pushed a big comeback after a rough 2024, telling dealers to expect major improvements in sales and marketing. Alfa Romeo is also walking back its all-EV plans in favor of a multi-energy strategy. Ford doubled down on affordability, bringing back base trims of the F-150, Escape, and Explorer, plus a new entry-level Bronco. New marketing for the Maverick and Bronco Sport highlights their sub-$30K price tags. Nissan acknowledged dealer struggles, with new Americas Chairman Christian Meunier vowing to improve dealer profits and return on sales. Infiniti will cut the QX50 and QX55 by year’s end. Subaru shifted allocation to state-by-state, adjusting for emissions regulations and market conditions instead of regional zones. Incentives will now vary by state. GM will stay the course under Trump, reassuring dealers that policy shifts won’t impact product plans, even as new tariffs loom. Cadillac still aims to lead luxury EVs in 2025. The AI stock boom faced a major reality check as China’s DeepSeek introduced an AI model that rivals OpenAI—but wi
Sat, January 25, 2025
Saturday Morning LIVE from the 2025 NADA Show
Shoot us a Text. Day 2 starts NOW! Paul and Kyle share the conversations they were apart of yesterday, what they're hearing from dealers and how over 70% of registered attendees have shown up in New Orleans! Plus, we've got guest Ed Roberts , COO of Bozard Ford Lincoln ! Saturday's coverage of the 2025 NADA Show is brought to you by Comply Auto Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, January 24, 2025
Friday Morning LIVE at the 2025 NADA Show
Shoot us a Text. Good morning, New Orleans! Today, we're broadcasting from outside the NADA Main Stage as we get ready for the first day of NADA 2025. Joining us is Tom Castriota, incoming chairman of NADA! Here to a great Friday! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, January 23, 2025
J.D Power Auto Summit - Jack Hollis Steps Down - The Dealer Playbook joins More Than Cars
Shoot us a Text. We are coming to you live from New Orleans with the most comprehensive coverage of the NADA Show and J.D. Power Auto Summit. Conditions are rapidly improving and schedules are adjusting to accommodate all of the events and expo floor for attendees. On our minds this morning is Jack Hollis stepping down from Toyota and Michael Cirillo's podcast, The Dealer Playbook, is joining the More Than Cars Media Network. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, January 22, 2025
The Official More Than Cars NADA Preview, NADA Pushes Back, Tesla Y Discounts
Shoot us a Text. It’s wheels up to New Orleans for the ASOTU Crew. On this NADA Show Eve, we’re giving you the official preview of where we’ll be and how to track us down. Plus, we talk about NADA pushing back against OEMs who have decided to sell direct and how you can get a Tesla Model Y for under $40,000. Show Notes with links: What Is A Must Attend? The ASOTU First Stop Party ASOTU on the NADA Live Stage Stop by the ASOTU booth #8059 Watch for the new More Than Cars Season 1 Trailer around the Show NADA will make an Official Statements on VW/Scout and Sony/Honda Following the franchise meetings for Volkswagen and Honda at NADA Show in New Orleans NADA President and CEO Mike Stanton will be available to talk to the press about these manufacturers’ recent announcements to attempt the direct sales model to retail sell the Scout and Sony vehicles. Tesla is offering steep discounts on its Long Range AWD Model Y , with prices dipping below $40,000 after the $7,500 federal tax credit—a rare price point for an AWD electric SUV. Tesla’s inventory Model Y now starts at $39,490, undercutting the build-to-order price. Leasing deals have dropped to $329/month, lower than the usual $399/month. The discounts apply to the 2020 Model Y, as Tesla prepares for the Juniper refresh next year. Tax credit uncertainty looms with the new Trump administration, potentially affecting future EV incentives. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, January 21, 2025
Tariffs By February, New Year, New Stellantis, Marketplaces Over Brands
Shoot us a Text. Tuesday of NADA week means our bags are packed for New Orleans! Today, we’re talking about President Trump’s plans for tariffs on Mexican and Canadian imports, Stellantis’s plan to revive sales and market share, and how consumers prefer to shop on marketplaces rather than brand websites. Show Notes with links: President Donald Trump has reaffirmed his intention to impose 25% tariffs on all Mexican and Canadian imports, citing concerns over drug trafficking and illegal immigration. With a February 1 deadline in mind, the proposed tariffs have set off alarm bells across the automotive industry and beyond. The tariffs would affect $97 billion worth of auto parts and 4 million finished vehicles, increasing average new-car prices by about $3,000. Detroit automakers face major disruption, as Stellantis imports 40% of its U.S. vehicle sales, GM 30%, and Ford 25%. Both Canada and Mexico have threatened retaliatory tariffs against American goods, potentially leading to a broader trade war. Canadian Prime Minister Justin Trudeau flew to Florida to emphasize that Canada is not the problem, while Mexico has increased enforcement efforts to appease Trump. Trump also indicated he was still considering a universal tariff on all foreign imports to the U.S., but said he was “not ready for that yet.” With the departure of CEO Carlos Tavares, Stellantis is reviving popular models, reintroducing incentives, and refocusing on affordability. The company hopes these changes will reverse plummeting sales and rebuild relationships with dealers and suppliers. Jeep is bringing back the Cherokee-sized SUV, a key nameplate that once made up 17% of the brand’s sales. Dodge is reviving the gas-powered Charger, reversing its shift away from internal combustion engines. Ram is delaying its all-electric pickup, opting instead for a hybrid model with a gas backup. Stellantis’s market share fell from 12.5% to 8% under Tavares, prompting a strategic overhaul. “We need to be sure that in the next 12 months, we see a clear path to go to double-digit [market share],” said Stellantis COO Antonio Filosa. A new global study highlights just how dominant online marketplaces have become for shoppers in the U.S., UK, France, Germany, and the Netherlands—leaving traditional brand-owned websites in the dust. 63% of consumers pre
Mon, January 20, 2025
NADA Show Mainstage Preview, Canoo Upstream Without A Paddle, EV Winter Range Tests
Shoot us a Text. It’s the biggest week in retail auto as the industry prepares to descend on New Orleans. Today, we’re previewing what you can expect at the Show on the mainstage, plus we’re talking about Canoo filing for bankruptcy and looking at how much range EVs actually have during the winter. Show Notes with links: Every year, the NADA Mainstage is a must-attend while at the Show, and this year is no different. These sessions start at 8:45AM Friday through Sunday and feature leadership, humor and knowledge from outside of automotive. Friday, January 24 kicks off with Best-Selling Author & Executive Coach, Ryan Leak discussing strategies for self-leadership and team empowerment. He’ll help dealers answer key questions like “What am I like as a leader?” and offer practical tools for fostering a high-performing team. Plus, 2024 NADA Chairman Gary Gilchrist will speak. Saturday, January 25 features Frank Caliendo, Comedian, Actor & Impressionist bringing his signature humor to the NADA stage. He’s famous for spot-on impressions of sports figures, celebrities, and politicians. Then, incoming 2025 NADA Chairman Tom Castriota will speak and the highly anticipated Time Dealer of the Year ceremony. Our friends who have been nominated this year: Andy Guelcher of Mohawk Chevy and Mohawk Honda, Andrew Walser of the amazing Walser automotive Group, Julie Herrera of Toyota of Cedar Park, Shaun Del Grande of Del Grande Dealer Group Sunday, January 26 wraps up with Legendary Duke Basketball Coach Mike Krzyzewski (Coach K). He’ll share lessons on leadership and teamwork from his Hall of Fame career, and provide insights into building a winning team culture. EV startup Canoo Inc. has filed for Chapter 7 bankruptcy, halting operations immediately and liquidating its assets. Despite efforts to secure foreign investment, the company struggled with cash flow, weak demand, and failed funding attempts. Known for its microbus-inspired cargo vans, Canoo supplied government and commercial fleets, including NASA, the Department of Defense, and Walmart. Production began in Oklahoma (Nov. 2023), with $100M in potential incentives, but cut 23% of its workforce within a year. The company reported a $165M net loss in 2024, generating just $1.5M in revenue—less than the $1.7M spent on its CEO’s private jet in 2023. CEO Tony Aquila: “We are truly disappointed that things turned out as they did.” The latest 2025 Scandinavian winter EV test results are in.
Sat, January 18, 2025
What To Expect at NADA 2025 - with Chris Reeves!
Shoot us a Text. It's the last weekend before the 2025 NADA Show and so we're looking ahead to next week. Head Writer Chris Reeves gives us the rundown on what to expect, what to look for and what to avoid. Plus, Paul and Kyle tell us what they want to achieve. Follow Nathan Southwick Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, January 17, 2025
GM Banned From Selling Customer Data, EV Registrations Skyrocket, Retail Ready for 2025
Shoot us a Text. We’re wrapping up the week so we can hit NADA running. Today, we cover how GM has settled a case with the FTC about collection and selling of data collected through Onstar. Plus, EV registrations are rising amid concerns that President Trump will get rid of the IRA tax credit, and lessons learned from the 2025 National Retail Foundation Big Show. Show Notes with links: General Motors has reached a settlement with the FTC over allegations that it sold customer driving data without their consent. The FTC alleged that GM's OnStar service collected precise geolocation and driving behavior data, which was then sold to third parties, including consumer reporting agencies. GM failed to clearly disclose to consumers that it collected and sold this data. The FTC claims that GM's enrollment process for the OnStar Smart Driver feature was "confusing and misleading." GM has discontinued the Smart Driver program and ended its third-party telematics relationships with LexisNexis and Verisk. Under the settlement, GM is banned from disclosing this type of consumer data to consumer reporting agencies for five years. The company will also take steps to provide greater transparency and choice to consumers over the collection, use, and disclosure of their connected vehicle data. "Respecting our customers' privacy and earning their trust is deeply important to us," GM said. Electric vehicle registrations saw a significant jump in November as consumers rushed to take advantage of automaker discounts and secure the $7,500 federal tax credit, which may be repealed under President-elect Donald Trump. EV registrations surged 21% year-over-year to 109,120 vehicles in November. Battery-electric vehicles captured 8.3% of the U.S. light-vehicle market, up from 7.4% a year earlier. Automakers, fearing a drop in EV demand if incentives are repealed, offered deep discounts and lease deals. Tesla led the market with 46,225 registrations, while GM brands saw the most growth, particularly Chevrolet. The National Retail Foundation 2025 Big Show in New York brought together tens of thousands of retail professionals to discuss the landscape of shopping, technology, and consumer behavior. Key themes included adaptability, embracing failure, and the growing role of AI-driven dynamic pricing in retail strategies. Best Buy CEO Corie Barry em
Thu, January 16, 2025
Gary Gilchrist Reflects on 2024, Rivian’s Best-Selling E-Van, Baristas Push Back
Shoot us a Text. Is NADA really only a week away? Today, we’re looking back at Gary Gilchrist’s time as 2024 NADA Chairman, seeing how Rivian became the best selling electric van in the country, and examining Starbucks new code of conduct and how baristas are responding. Show Notes with links: Yesterday, we covered incoming NADA Chairman Tom Castriota’s priorities for 2025, so today, it’s only fitting that we give 2024 Chairman Gary Gilchrist the floor for a bit. As he prepares to hand over leadership, Gilchrist emphasizes the importance of strong dealer advocacy in Washington and continued defense of the franchise system amid direct-sales threats and regulatory changes. On EV Adoption: “[Dealers have] spent millions of dollars in our facilities to make this transformation, but it is the consumer choice, and the consumers are not adopting it. [W]e’re at 7.8% nationally for fleet adoption, so we’ve got a ways to go On the CARS Rule: “NADA has been at the tip of the spear on that. We’ve challenged it, and now we’re just waiting for the ruling. We feel good about it, but obviously we’re waiting to see where the ruling comes. On the IRA Tax Credit potentially going away: “We need that $7,500 tax credit right now as we cut the line down on EV inventory. Let’s give it some time for customers to take advantage of it.” On Scout Motors: “It’s a real simple answer: It will be challenged nationwide.” What he would like to see incoming Chairman Tom Castriota accomplish: 1. Defend the franchise system against direct sales. 2. Strengthen relationships with ATAEs. 3. Monitor government overreach. Rivian has taken the top spot in the electric van market , surpassing Ford with its Electric Delivery Van (EDV). Despite facing manufacturing hurdles and supply shortages, Rivian’s partnership with Amazon and expansion into new fleets helped drive record-breaking sales. Rivian delivered 13,423 electric vans in 2024, a 67% increase from 2023, outpacing Ford’s 12,610 E-Transit sales. The EDV’s strong Q4 performance (4,397 units, +84.1% YoY) helped Rivian claim the title of best-selling electric van in the U.S. Rivian’s Normal, IL plant underwent upgrades in April to improve cost efficiency but also faced temporary shutdowns in the summer due to part shortages. Starbucks Workers United (SBWU), which represents more than 11,000 baristas, is pushing for clarity and bargaining over <a href='https://www.fastcompany.com/91261294/starbucks-baristas-want-a-say-in-the-new-code-of-conduct-and-controversial-rollback-
Wed, January 15, 2025
Man With A Plan, Ebay Leans Into Used Cars, ChatGPT Tasks
Shoot us a Text. Michael Cirillo joins the show on this hump day, as talk about incoming NADA Chairman Tom Castriota, how Ebay is joining the online used car game and ChatGPT making repeatable tasks happen. Show Notes with links: Tom Castriota, incoming chairman of the National Automobile Dealers Association (NADA), has outlined his priorities for 2025 , focusing on regulatory changes, the EV transition, and franchise system challenges. Tom is a Marine Corps veteran with 27 years of service and was recognized as the 2011 TIME Magazine Dealer of the Year. His philosophy is to “try to do it right, every day. Do it honestly and do it correctly.” On the incoming administration: “I believe personally that we have an administration that’s a little more pro-business. The consumer is very important. Without the consumer’s ability to buy, then we’re all struggling.” On affordability: “My biggest concern is the average consumer, they’re stretched… Those are the ones that are struggling today to buy that $30,000 truck or that $30,000 car or $30,000 EV. And that’s where I really believe that we as an industry, from the retail standpoint, that’s where many of us are missing that opportunity to grow.” On inventory and day supply: “I don’t know if we, in the next few years, the manufacturers, want to get to that standpoint that there’s 3 million, 4 million cars and trucks sitting on dealers’ lots at a 120-day supply. I don’t think any manufacturer wants to do that." eBay has announced plans to acquire Caramel, a Los Angeles-based startup that simplifies the final steps of car sales , including financing, ownership transfer, and insurance. The acquisition aligns with eBay’s strategy to enhance trust and efficiency in its automotive marketplace. The platform facilitates identity verification, title transfers, financing, and vehicle delivery, aiming to reduce post-sale complexities for buyers and sellers. eBay aims to expedite and secure used car transactions, building on its existing escrow services and maintaining its competitive edge in the growing online automotive market. The move comes as Amazon enters the car sales space with its Amazon Autos platform, signaling increased competition in the industry. "The acquisition is all about ‘creating trust’ in the vehicle buying process," said Chris Prill, General Manager of eBay Motors. OpenAI has announced a new feature for ChatGPT called 'Tasks,' allowing users to schedule actions and remi
Tue, January 14, 2025
Banning Russian Car Hardware, Google “Empathetic” Auto AI, Target Slashes Production Timelines
Shoot us a Text. 9 days to NADA and you can feel the anticipation around the social media halls. Today, we’re talking about how the US Commerce Department is banning Chinese and Russian car hardware and software, Google’s new automotive AI agent debuting in the Mercedes CLA and Target changing production timelines to match social media trends. Show Notes with links: The U.S. government has finalized a sweeping ban on the use of Chinese and Russian-made hardware and software in internet-connected vehicles to bolster national security and protect consumer privacy. The Commerce Department will ban Chinese and Russian connectivity hardware in 2030 models and driving software from 2027 models. Manufacturers tied to China and Russia are also prohibited from selling connected vehicles in the U.S. Commercial vehicles, such as trucks and buses, are not yet covered but will be addressed soon. Secretary Gina Raimondo stressed the ban as a measure to protect national security and American privacy. “This is a targeted approach to ensure we keep PRC and Russian-manufactured technologies off American roads,” Google Cloud has unveiled its Automotive AI Agent platform , debuting in the new Mercedes CLA. The advanced system promises seamless, conversational interactions tailored for driver with enhanced natural language processing. The next-gen MBUX Virtual Assistant has four “personality traits” (natural, predictive, personal, empathetic) and can ask clarifying questions to improve responses. Powered by Google’s Gemini and Vertex AI, it offers real-time Google Maps updates, restaurant reviews, recommendations, and handles multi-turn dialogue. Older Mercedes models with MBUX Voice Assistant may receive updates incorporating ChatGPT and Bing, though without full conversational AI features. “This is just the beginning of how agentic capabilities can transform the automotive industry,” said Sundar Pichai, Google CEO. Target is speeding up its production process, slashing timelines from 27 weeks to just eight , to keep pace with consumer demands and trends driven by digital giants like Shein and Temu. Target’s new model responds to rapidly shifting social media trends, aiming to match fast fashion’s quick go-to-market strategies. For example, Target recently pivoted from decorative bows to cherry-themed holiday appare
Mon, January 13, 2025
Wildfires, Customer Satisfaction, and A Sideline Reader
Shoot us a Text. California wildfires have forced dealership closures, but communities are coming together to support first responders. Meanwhile, new-vehicle buyer satisfaction reached a record high in 2024, driven by seamless digital tools and efficient processes. During the first round of the NFL playoffs, A.J. Brown’s viral sideline book moment offers a glimpse into a high performer’s mindset and resilience. As wildfires rage across Southern California, local businesses, including car dealerships, face significant challenges. Over 45 square miles have burned, forcing evacuations and disrupting operations. Some dealerships have temporarily closed, while others rally to support their communities and first responders LAcarGUY temporarily closed seven Santa Monica dealerships and one Hollywood location, Group 1 Automotive closed its Mercedes-Benz Beverly Hills store for two days. AutoNation reported no direct damage but continues to monitor the situation. Matthew Phillips, CEO of Car Pros Automotive Group, expressed concern for employees and the community, noting smoke and power outages at their locations near evacuation zone According to a linked in post, Brett Sutherlin, CEO of Sutherlin Automotive Group, lost his home to the Palisades fire, saying “We will be going through a lot over the next few weeks and dealing with the loss of our beautiful home and neighborhood,” New-vehicle buyer satisfaction hit record highs in 2024, driven by enhanced digital tools and seamless integration between online and in-dealership activities. According to Cox Automotive's latest Car Buyer Journey study, 75% of new-car buyers reported being highly satisfied with their shopping experience, underscoring the importance of transparency, technology, and efficiency in the automotive retail process. About 75% of new-vehicle buyers expressed high satisfaction with the shopping process in 2024, up from 73% in 2023, marking an all-time high for the study. Dealership satisfaction also hit a record 81%, with shoppers reporting reduced “sticker shock” and more positive feelings about vehicle selection. EV buyers led in satisfaction, with 82% highly satisfied, compared to 75% of gasoline-powered vehicle buyers. During the Philadelphia Eagles' 22-10 playoff victory over the Green Bay Packers, wide receiver A.J. Brown kicked off a viral moment by reading a book on the sidelines. Brown, who had a quiet
Sat, January 11, 2025
A Seattle City Names Auto Dealer Jim Colon As Businessman of the Year
Shoot us a Text. Paul, Kyle, and Chris settle the argument about how long you can wish someone "Happy New Year" before they talk about an entire business community honoring, Jim Colon, Owner of Marysville Toyota as their best and brightest of 2024. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, January 10, 2025
Detroit Glitz, Used Car Shifts, and Starbucks Gets a Makeover
Shoot us a Text. Today we’re talking about the legendary stunts of the Detroit Auto Show, the stabilization of used car prices after pandemic volatility, and Starbucks shutting down stores for a barista reboot under its new CEO. The Detroit Auto Show has long been a stage for iconic moments , from smashing Jeeps through glass to launching entire luxury brands. Once the epicenter of automotive innovation, the event has struggled in recent years to maintain relevance amid rising costs, digital marketing trends, and competing global expos. During the '90s and early 2000s, the show was the must-attend event for automakers and media, with 4,000 journalists. Some theatrical reveals included Bob Lutz driving a Jeep Grand Cherokee through a plate glass window in 1992, a Dodge Ram crashing through cardboard in 1993, Kermit the Frog driving a minivan in 1995, and a cattle drive introducing the 2009 Dodge Ram. Automakers invested millions in jaw-dropping spectacles, like Cirque du Soleil performances and celebrity appearances, making it a race to outdo each other every year. The rise of CES and specialty expos, coupled with automakers shifting to digital-first marketing strategies, diluted the Detroit show's dominance. The Detroit Auto Show has since returned to its January roots, focusing on engaging consumers rather than relying on the media spectacle it once was. "The world has changed. That is reflected in the auto show," said David Cole, chairman emeritus of the Center for Automotive Research. This year's show will be January 10 to January 20, 2025, at Huntington Place in Detroit Used vehicle prices are expected to stabilize further in 2025, bringing relief to buyers after years of pandemic-induced volatility. While still higher than pre-pandemic levels, prices are trending toward normalization. Cox Automotive predicts wholesale prices will end 2025 up 1.4% compared to December 2024. Prices surged 46.6% in 2021 and 14.2% in 2020 but dropped sharply in 2022 and 2023. Retail prices remain slow to decline, with December's average listing at $25,565, down 3% year over year. Used vehicle sales are forecast to rise 1% in 2025, with 20.1 million retail sales. Starbucks is hosting a mandatory three-hour training session later this month as part of CEO Brian Niccol's effort to revitalize the brand. Niccol’s said in a session descript
Thu, January 09, 2025
CES Wrap-Up with Steve Greenfield, Solving Snowy Self-Driving, Mach-E Outsells Mustang
Shoot us a Text. As the 2025 CES Show winds down, we have some final thoughts from correspondent Steve Greenfield. Plus we look at Goodyear’s solution for autonomous vehicles in snowy climates and talk about the Mach-E overtaking the traditional Mustang in sales. We’ve got correspondent Steve Greenfield joining us one last time to share his final thoughts from an exciting CES 2025. At CES, Goodyear unveiled cutting-edge tire tech to tackle autonomous vehicles’ Achilles’ heel— icy and snowy conditions . Will smarter tires pave the way for self-driving cars to conquer wintry roads? Goodyear and Dutch TNO showcased tire tech using vehicle cameras and weather data to predict braking distances on icy roads. Automated braking systems struggle in snow and ice, limiting self-driving vehicle adoption in colder climates like Ohio. Goodyear’s “SightLine” platform combines tire and weather data to improve braking predictions; future iterations may integrate tire-embedded sensors. This tech could expand self-driving car markets beyond sunny locales like Phoenix and San Francisco. Chris Helsel, Goodyear CTO: “Without a trained driver, the system doesn’t know it’s a snowy road. That’s the innovation we’ve done here.” The Mustang Mach-E outsold the gas-powered Mustang in 2024, signaling a shift in Ford’s iconic lineup. Here’s how both models performed and what it means for the brand. Ford sold 51,745 Mustang Mach-Es in 2024, a 27% increase, compared to 44,003 gas-powered Mustangs—a 9.5% decline. Production issues led to tight supplies, but Ford emphasized the model’s profitability and strong appeal among enthusiasts The gas Mustang now dominates a shrinking sports car category as rivals Chevrolet and Dodge exit the market, with Ford gaining 10% market share in 2024. Ford last year signaled it intends to expand the traditional portfolio, showing some dealers variants including a four-door coupe and a four-wheel-drive off-road model in a closed-door meeting. “Mustang is a very profitable and vibrant business for Ford. We build passionate products for enthusiasts,” said spokesperson Said Deep. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, January 08, 2025
CES Updates with Steve Greenfield, Afeela Details, Self-Driving Ubers, 25% EV in 2025
Shoot us a Text. As all the announcements from CES roll in, we’ve got Steve Greenfield back again to break it all down. We cover the details of Sony Honda Mobility’s Afeela, plus talk about how Uber and Lyft are moving towards autonomy and how 25% of cars sold in 2025 will be EV. News out of CES yesterday: Sony Honda Mobility is the latest brand to bypass dealership networks to sell its first electric sedan. The Afeela 1 will be sold exclusively online , allowing customers to handle everything from reservations to purchases through the brand’s website. The EV, priced at $89,000 for the Origin trim and $102,900 for the Signature trim, includes cutting-edge features like 40 sensors, AI integration, and Qualcomm's advanced semiconductor tech. California will be the launch market, with reservations open now. Afeela Studios in Torrance and Fremont will offer test drives and serve as delivery hubs, providing Northern and Southern California customers a physical interaction point. The vehicles will be assembled at a Honda factory in Ohio, leveraging Honda's established manufacturing expertise. Owners can get service through Crash Champions, a nationwide network of collision repair centers, ensuring comprehensive support across 650 locations in 38 states. Uber and Lyft are embracing the driverless future by adapting their platforms and infrastructure to integrate autonomous vehicles from companies like Waymo and May Mobility. Uber and Lyft apps will include some rider controls for driverless taxis, including adjusting car temperature, honking horns, and opening trunks remotely. Both companies are converting locations into depots equipped with chargers, high-speed internet, and facilities to maintain lidar, cameras, and other tech critical for autonomous vehicles. Uber will offer Waymo rides in Austin and Atlanta, while Lyft plans to deploy May Mobility’s autonomous taxis in Atlanta. Both aim to capitalize on partnerships with established robotaxi providers. Riders are warming up to driverless taxis, with Waymo seeing rapid adoption in San Francisco. Lyft CEO David Risher says these vehicles are expanding the ride-hailing market by attracting curious users. The year 2025 is set to mark a turning point for electric vehicles , as they transition from niche products to mainstream choices, driven by improving affordability, expanded options, and growing consumer adoption. One in four vehicles sold in 2025 is projected to be electr
Tue, January 07, 2025
Live from CES with Steve Greenfield, Return-uary
Shoot us a Text. This Tuesday morning, we’ve got ASOTU Correspondent Steve Greenfield bringing us all the updates from CES. Plus, it's that time of year where returns dominate the retail landscape. CES 2025 is here, and it’s bringing groundbreaking tech and bold moves in innovation. Perhaps most notably for auto, Sony-Honda Mobility announced the price details for it’s Afeela car . The Afeela 1 Origin starts at $89,900, while the Signature trim is priced at $102,900. Both include a three-year subscription to features like Level 2+ driver assist and an AI-powered assistant. Buyers in California can place a $200 refundable deposit. Availability for other states remains unclear. The Signature trim arrives in 2026, with the Origin following in 2027. Today, the company will hold another press conference to outline the customer experience of shopping for and owning an Afeela. To talk all things CES, let’s bring in Steve Greenfield, General Partner at Automotive Ventures and special ASOTU Correspondent this week. "Returnuary," the post-holiday season phenomenon where returns dominate the retail landscape , is back. This year, retailers and shoppers face tighter policies amid escalating return volumes. Returns in January 2025 are expected to hit $890 billion, 16.9% of merchandise sales, up from $743 billion in 2023. Retailers like Saks and Zara have introduced return fees and shorter windows to curb losses from returns. Fraudulent returns also strain retailers, making up 14% of returns in 2023, per NRF data. New return rules are affecting shoppers as The Wall Street Journal reported that, “More than two-thirds of consumers who are aware of stricter return policies say those rules deter them from making purchases.” Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, January 06, 2025
CES History and Preview, Car Payments Continue To Rise, Meta AI Accounts Face Backlash
Shoot us a Text. It’s CES week, meaning all the announcements and concepts, so we’ve got you covered on what to pay attention to. Plus we talk about how monthly payments are continuing to rise and how some AI accounts created by Meta are sparking controversy. Automotive News and CES share a rich legacy , starting a century ago. Together, they’ve chronicled and shaped the evolution of technology and innovation in the auto industry for 100 years. The Radio Manufacturers Association, also formed in 1924, evolved into the Consumer Technology Association, operator of CES. Automotive News debuted in 1925, with its first edition covering industry changes like tire innovations and gas price wars. In 1924, Kelly’s Motors installed the first car AM radio in 1924, marking the start of auto-tech convergence. CES became a stage for auto-tech in 2001 when Mercedes-Benz exhibited its first concept; today, software-defined vehicles and EVs dominate. CES 2025 promises to showcase the future of automotive tech alongside cutting-edge consumer gadgets. Here’s what to watch for as the event unfolds. Early announcements started yesterday, with automakers likely teasing EV concepts and tech advancements. Today will feature the biggest announcements of CES, featuring Samsung, Nvidia and Sony, setting the tone for the week. For the rest of the week, the show floor opens, offering hands-on access to next-gen automotive innovations like software-defined vehicles, AI integration, and autonomous features. As new-vehicle affordability continues to challenge consumers, Q4 2024 set new records for monthly payments and loan amounts. According to Edmunds, nearly 1 in 5 new-car buyers in Q4 2024 committed to $1,000+ monthly payments, an all-time high. The average amount financed for new cars hit $42,113, up from $40,713 in Q3 2024. 0% financing offers remain scarce, accounting for only 2.4% of deals, requiring excellent credit to qualify. Average new-car APR dipped to 6.8% in Q4 2024, showing signs of improvement after years of high rates. Meta’s experimental AI-generated accounts have sparked controversy for their fabricated identities and profit-driven goals . Some bots, like "Liz" and "Grandpa Brian," went viral for calling out their own creators, prompting Meta to shut down the accounts amid a storm of public c
Sat, January 04, 2025
New Years Resolutions For The Automotive Industry
Shoot us a Text. Welcome to the first weekend of 2025! Today, Nathan and Chris talk about their New Year's Resolutions and then share some of the amazing things that auto dealers did to close out 2024. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, January 03, 2025
Carvana’s “Grift For The Ages”, Tesla’s Drop In Deliveries, Cursive Coming Back
Shoot us a Text. Today, we break down the Hindenburg Research report that allegedly exposes Carvana’s shady business practices. Plus, we cover Tesla’s first annual drop in deliveries and talk about the return of cursive logos. Show Notes with links: Hindenburg Research, known for exposing automotive startups like Nikola and Lordstown Motors, has published a scathing report on used-car retailer Carvana , alleging questionable accounting practices and underwriting concerns. Carvana allegedly sold $800M in loans to a "suspected related party" and used "accounting manipulation" to inflate profits. Carvana allegedly sold vehicles to DriveTime, a company owned by Ernie Garcia II (father of Carvana’s CEO), at inflated prices to avoid recording markdowns, thereby boosting its reported revenue. A former director reportedly claimed Carvana approved 100% of loan applicants, suggesting riskier lending practices to generate higher loan volumes, and by extending loan terms through a DriveTime affiliate, Carvana may have avoided reporting higher delinquency rates, potentially hiding the true state of its loan portfolio. Carvana shares dropped 1.9% following the report, closing at $199.56. The company called the report "intentionally misleading and inaccurate," asserting a focus on long-term growth. Tesla’s Q4 production and delivery numbers are in, marking a challenging end to 2024 for the EV giant, with its first annual drop in deliveries amidst intensifying competition and political distractions for CEO Elon Musk. Tesla delivered 1.78M vehicles in 2024, falling short of the 1.81M it delivered in 2023. Q4 2024 deliveries hit 495,570, falling short of analysts’ expectations of over 500,000. Tesla shares dropped 7% following the report, despite a 63% rally in 2024, showing mixed investor sentiment. Tesla faced declining sales in Europe and slower growth in China while rivals like BYD and Hyundai gained market share. High-priced Cybertrucks are "piling up on used car lots," reflecting a lack of affordable EV options in 2024. “Tesla still does many things better than any other EV maker, but the challenge remains the nuts-and-bolts job of being a car company,” said Patrick George, editor in chief of InsideEVs. Lord & Taylor is turning back the clock, reviving its cursive logo as it prepares to relaunch as an online discount luxury retailer under new ownership, Regal Brands Global. The classic script logo, firs
Thu, January 02, 2025
2025 Predictions by Paul, Kyle and Steve Greenfield, Generation Beta Is Here
Shoot us a Text. It's the first show of a new year, and with it, we’ve got predictions, predictions, predictions! Plus, we celebrate the arrival of the newest generation, Gen Beta! Show Notes with links: Here are our predictions: 2025 will bring new norms in communication, marketing, and EVs (Paul) More concerted effort to differentiate based on the individual people and personalities of stores/groups (Kyle) Dealers will spend more on in house creative and social media than they ever have as a percentage of their marketing budget (Paul) EV sales strategy and effort in new/used will no longer be just for early adopters (Kyle) American-made OEMs will make R&D deals for EV technology to attempt to compete in the global EV race (Paul) AI use in everything from strategy to marketing to analysis will skyrocket (Kyle )AI will enable true digital finance application, approval, and recommendations for more seamless deal flow BONUS: (Kyle) Automotive conferences will finally get better coffee Speaking of predictions, Steve Greenfield released his list for 2025 , and there are some doozies! He predicts huge moves in the OEM space, suggesting that VW will acquire Rivian, GM and Ford will merge to fend off Chinese OEMs, and BYD will acquire Stellantis to get around US tariffs. Amazon will add 10 OEMs to its program by the end of the year. He sees several major companies going public, including Carfax, J.D. Power and Solera. M&A activity will be unprecedented under the Trump administration, and CDK and Reynolds will merge. Looking for disruptors? Greenfield suggests to watch out for Foxconn, the world’s largest electronics manufacturer, who already purchased a former GM plant in Ohio. As we ring in 2025, meet Generation Beta —the latest cohort born into a world of rapid innovation and automation. These kids will grow up alongside AI and immersive technologies, shaping a future that feels straight out of science fiction. Generation Beta covers children born from 2025 to 2039, following Generation Alpha (2010–2024). This marks the second generation born entirely in the 21st century. Their parents are predominantly Gen Z and young Millennials, these parents will raise their kids amidst the most advanced tech yet. Generation Beta may never know a world without autonomous cars, AI assistants, and immersive virtual environments. Many may even outlive the 21st century. By 2035, Generation Beta is projected to represent 16% of the global population, according to demographer Mark
Tue, December 31, 2024
2024 Memorable Moments, Banner Year For Hybrids, Fiat Lease For $0
Shoot us a Text. The end of the year is finally here, and so we’re looking back, covering the top 10 best-selling vehicles of 2024. Plus, we talk about a unique $0 down and $0 monthly payment Fiat lease as well as reflect on some of our most memorable moments. Show Notes with links: Hybrid electric-gas cars had a banner year in 2024, achieving record sales. With a shift in buyer demographics, these vehicles bridged the gap for consumers seeking efficiency and practicality without fully committing to electric vehicles. A shift from early adopters to budget-conscious shoppers drove hybrid demand. Many buyers appreciated the lower costs and simpler integration into daily life compared to EVs. Here are 2024’s top 10 best-selling vehicles. 10. Chevy Equinox. 9. Honda Civic 8. Nissan Rogue 7. Toyota Camry 6. Toyota Corolla 5. Tesla Model Y (only true EV on the list) 4. Chevy Silverado 1500 3. Honda CR-V 2. Toyota RAV4 1. Ford F-150 (America’s best-selling vehicle for 47 years, with 20% of buyers opting for the hybrid version) The top three all have hybrid options that did especially well this year, and about half of all RAV4 and CR-V sales are hybrids, according to Edmunds. “Hybrids this year became an extremely easy default decision for someone who doesn't want to go full electric but wants basically 70% or 80% of benefits” said Ivan Drury of Edmunds. Who says driving electric has to break the bank? A Fiat dealership in Colorado pulled off the seemingly impossible: a lease deal on the 2024 Fiat 500e that truly costs $0 down and $0 a month. The deal covers a 27-month term, 10,000 miles per year, with just $1,300 in state taxes and fees due upfront. Larry H. Miller Chrysler-Dodge-Ram-Fiat Denver moved over 60 cars in three days, using over $15,000 in federal and state incentives, plus factory discounts, to enable this unheard-of lease offer. Colorado’s state incentives decrease in 2025, and federal EV credits are under scrutiny, meaning deals like this are less likely in the future. David Gluckman of Car & Driver leased one of the cars, and commented on the dealership’s challenges with such a unique agreement: “I was warned, apologetically, that there was a chance I might have to re-sign some of the paperwork because the dealer’s computer system didn’t know how to handle a lease with no payment… A funny formality: They still had to run a credit check to confirm my ability to (not) pay.” As we close out the year, we look back at some of our most memorable moments. Let us know your
Mon, December 30, 2024
Is Nissan The Right Honda Partner?, CA Dealers Push Back on Scout, Overpriced Fast Food
Shoot us a Text. 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. Show Notes with links: 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. 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.” 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
Fri, December 27, 2024
The 2025 Predictions Episode with Steve Greenfield
Shoot us a Text. As we enter the last weekend of the year, we’re looking ahead! We’re throwing it back to our conversation with Steve Greenfield on the Year End Extravaganza, where he talked to us about what he was paying attention to going into the New Year. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, December 26, 2024
Happy Holiday Hangover with Zac Kinch and Austin Conroy of Rohrman Automotive
Shoot us a Text. The day after Christmas means it’s time to get back to selling, and we couldn’t think of a better way to inspire you towards that than to look back at our Year End Extravaganza Chat with Zac Kinch and Austin Conroy. They are the hosts of the Driving Relationships podcast and both leaders in the Rohrman Automotive Group, meaning they’re bringing on the ground, hands in the dirt, tactical experience to the conversation. And did we mention that Austin has millions of views on TikTok? Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, December 24, 2024
Christmas Eve Vibes with the Stars of More Than Cars Season 2
Shoot us a Text. On this day before Christmas, we replay the More Than Cars panel from the 2024 Year End Extravaganza with guests Letti Bozard, Liza Borches and Ed Roberts. There’s a sneak peek of More Than Cars Season 2 and some surprise announcements at the end! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, December 23, 2024
Honda-Nissan Officially A Go, Tesla’s $1.5T Market Cap
Shoot us a Text. Christmas week is officially here, but before we get to presents, we speculate on the future of Honda and Nissan, plus take a closer look at Tesla’s record market cap. Show Notes with links: Honda and Nissan are set to create a unified holding company to strengthen their competitiveness amidst industry challenges. Set to launch by August 2026, the combined entity is predicted to generate over $181 billion in annual revenue and $19 billion in operating profit. Honda will take the lead in the new company, nominating key executives and determining strategy. Plans include advancements in EVs, software development, and sales financing, aiming for significant results by 2030. Mitsubishi Motors will decide by January if they will join the partnership, adding strength in Southeast Asia and hybrid technology. Honda CEO Toshihiro Mibe described the merger as critical artillery for competing by 2030, stating, “We have the potential to be a world-class, leading company in new mobility.” Tesla's valuation has soared to a new all-time high of $1.5 trillion following the 2024 U.S. presidential election, solidifying its dominance in the global automotive market. Tesla accounts for nearly half of the global automotive market cap, exceeding the combined valuation of the next 29 automakers. Key competitors like Toyota ($231 billion) and BYD ($107 billion) trail far behind. Investors see Elon Musk’s close ties with President Trump as a potential boost, especially with anticipated corporate tax cuts. Tesla’s stock is up 57% year-to-date, despite its production (1.8M vehicles in 2023) lagging far behind Toyota (11.2M vehicles). Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Sat, December 21, 2024
$100,000,000 Donated By One Dealer For Cancer Care
Shoot us a Text. It's the last weekend before Christmas, so we discuss Christmas traditions around the ASOTU halls with writers Chris Reeves and Kristi Canada. Then, we discuss how car-dealer Herb Chambers donated $100 Million to Massachusetts General Hospital for a new state-of-the-art cancer care facility. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, December 20, 2024
Retail Auto Poised For Strong Finish, F-150 Lightning Production Pause, Is AI out of Training Data?
Shoot us a Text. With just 2 weekends left in the year, we’re excited to share that the automotive industry is set up for an excellent finish to 2024. Meanwhile, Ford is ramping down its F-150 Lightning production until the new year to meet demand, and Gen Z may just save the malls. Show Notes with links: The automotive industry is gearing up for a solid 2024 finish as inventories stabilize and aggressive year-end deals lure buyers back to showrooms. Analysts remain optimistic about continued momentum into 2025, despite policy uncertainties. Total 2024 sales are projected at 15.8–15.9 million vehicles, a solid increase from 15.6 million in 2023. December’s seasonally adjusted annual rate (SAAR) is expected to reach 17.2 million, the highest since 2021. General Motors is likely to hold its position as the top U.S. automaker, with Honda having the most gains, overtaking Stellantis in market share due to Stellantis’ estimated 15% sales drop. Retail leasing activity is up 19% YoY, fueled by record-high EV incentives averaging $8,202 per transaction. EV sales are forecasted to grow 12% in Q4, contributing to the year’s estimated 8% EV market share. Despite falling interest rates (below 7% for the first time in a year), high vehicle prices push average monthly payments to $740—a $15 increase over last year and $150 higher than in 2019. "We’ve gone from ‘wait to buy’ to a new marching cry of ‘buy now before prices and rates climb again,’” says Jonathan Smoke, chief economist at Cox Automotive. Ford has announced a temporary production pause for its F-150 Lightning until January 6, 2025. The decision reflects a strategic adjustment to align supply with actual market demand as the EV industry navigates a period of slower-than-expected growth. Ford sold 22,807 F-150 Lightnings in 2024, marking an 86% increase from last year. This performance places it well ahead of competitors like Chevrolet’s Silverado EV (5,252 units) and Rivian’s R1T (10,387 units). The pause at Ford’s Dearborn, Michigan plant is designed to prevent overproduction and ensure dealerships are not overstocked with unsold inventory. Ford’s strategy acknowledges that EV adoption is not growing as fast as earlier projections suggested, requiring automakers to balance innovation with market-driven production levels. As a Ford spokesperson explained: "We continue to adjust production for an optimal mix of sales growth and profitability." In a talk at the NeurIPS 2024 AI conference, former OpenAI Chief Scientist Ilya Sutskever
Thu, December 19, 2024
Paul and Kyle Call 1-800-ChatGPT, Foxconn Trying To Scoop Nissan, CA Requires Parking Lot Charging,
Shoot us a Text. Our 4th Annual Year End Extravaganza is at 1PM today! But before we get there, we’ve got to talk about how Foxconn is still trying to buy Nissan, how a new CA law will require way more charging infrastructure and ChatGPT’s phone hotline. Show Notes with links: The ante has been upped as a Foxconn exec is currently meeting with Renault officials in France to discuss acquiring a stake in Nissan, intensifying the urgency of Honda and Nissan’s merger talks. Facing fierce competition from Tesla and Chinese automakers, both Japanese giants are exploring deeper collaboration to stay afloat in a rapidly shifting EV market. Honda and Nissan have been exploring a holding company to deepen collaboration, stay competitive against Tesla and BYD, and address slowing EV demand in Europe and the U.S. A merger could offer cost savings and shared R&D across 7 million vehicles but risks overlap in markets and products, especially in the U.S. and Japan as Japanese regulators are closely watching the situation due to its potential impact on jobs. One of the biggest questions that we think isn’t being talked about enough, is this being a potential door to allow Chinese EVs to enter the market. California's new building codes, effective 2026, will require EV chargers in most new overnight parking spaces, providing convenient access to charging, especially for apartment dwellers and urban residents. Most new apartment and condo projects must ensure that each unit’s parking spot is "EV Ready" with 240V outlets or standardized chargers. Shared spaces can use power-sharing systems to keep costs manageable. New hotel/motel guidelines will require up to 65% of parking spots to be EV-ready, ensuring travelers have access to overnight charging. Office, retail, and other non-residential lots must designate at least 20% of their spaces as EV-ready, with incentives for installing DC fast chargers. Older parking lots must meet EV-ready requirements whenever significant updates or new spaces are added, creating a gradual statewide retrofit. OpenAI has launched a phone-based version of ChatGPT , allowing users in the US to call and chat with the AI for up to 15 minutes a month. The feature is part of OpenAI’s push to make AI accessible to new audiences. How It Works: Call 1-800-CHATGPT to connect with ChatGPT for up to 15 minutes per month per ph
Wed, December 18, 2024
Honda-Nissan Merger, EV Equinox Too Quiet, FTC Bans Junk Hotel Fees
Shoot us a Text. Remain calm, there is only 1 week until Christmas. Today we’re talking about a potential merger between Nissan and Honda, how Chevy’s EV Equinox apparently doesn’t make enough noise and how the FTC is cracking down on junk hotel fees. Show Notes with links: Nissan faces a crossroads as merger talks with Honda intensify, spurred by Foxconn's interest in a controlling stake and the competitive pressures reshaping Japan's auto industry. An announcement by Honda and Nissan could come as soon as Dec. 23, with plans to sign a memorandum of understanding to discuss shared equity stakes in a new holding company. A Honda-Nissan-Mitsubishi merger would create one of two Japanese auto powerhouses—the other led by Toyota and its stakes in Subaru, Suzuki, and Mazda. Foxconn’s interest in Nissan reportedly accelerated Honda’s push for a merger, fearing Nissan’s vulnerability to a takeover. Combined, Honda, Nissan, and Mitsubishi sold 4 million vehicles globally in the first half of the year, far behind Toyota’s 5.2 million on its own. Nissan shares surged 24% on Dec. 18, marking the biggest one-day gain in its history, after both companies acknowledged discussions. Renault, Nissan’s largest shareholder with a 36% stake, remains a key player, potentially influencing any final decision. General Motors issued a recall for the 2025 Chevy Equinox EV due to its pedestrian alert system failing to make sufficient noise at low speeds, potentially putting pedestrians at risk. The alert system's software may not meet federal noise requirements for hybrid and electric vehicles, affecting over 7,500 Equinox EVs. GM resolved the issue in its assembly plant in October. Current owners can get a free body control module update at dealerships starting January 27, 2025. EVs are known for their quiet operation, but regulations require external sounds to alert pedestrians, especially at low speeds. Despite the recall, over 15,000 units have already sold. The LT FWD trim, starting at $34,995, boasts a 319-mile range, making it one of the most affordable long-range EVs in the U.S. The FTC has passed a rule requiring ticket sellers, hotels, and rental sites to disclose total prices upfront, addressing "junk fees" that increase consumer costs. Companies must now include service fees, resort fees, and other charges in advertised prices, eliminating last-minute add-ons.
Tue, December 17, 2024
Highway Charging Plan To Stay, Super Cruise Subscriptions, Klarna Hires AI?
Shoot us a Text. 8 days to Christmas, and we’re covering how Biden’s plans to add highway charging infrastructure will continue under President Trump. Plus, we look at GM’s latest subscription add-on and ask if it will work, and examine a company that claims it has stopped hiring because AI can do all the work. Show Notes with links: The Biden administration’s plan to blanket U.S. highways with federally funded EV chargers will keep moving forward – no matter who sits in the Oval Office come next year. The National Electric Vehicle Infrastructure (NEVI) program has already allocated about half its funding to states, with the rest preapproved. So far, 11 states have opened 30 federally backed sites with more than 130 ports, aimed at creating chargers every 50 miles along major highways. States manage their own programs, though 10 states have yet to submit project proposals, potentially slowing progress in certain regions. Once the initial 50-mile network is complete, funds can go toward chargers in cities, suburbs, and rural areas, with faster, high-powered stations expected to follow. Atlas Public Policy’s Nick Nigro says Congress doesn’t need to act: “Funding is already going out, and construction is underway.” Loren McDonald, chief analyst of Paren said it’s too late to stop the momentum. “It would take almost an act of God for Trump or Congress to overturn it.” General Motors is facing a critical moment as introductory Super Cruise subscriptions start to expire, testing its long-term strategy to build a robust revenue stream from subscriptions. Super Cruise is a Level 2 autonomy system and GM aims to generate $25 billion annually from subscriptions and services by 2030. Our friend Jamie Butters wrote an op-ed about this for Automotive News and commented on the price point: ““At $10 a month, I’d consider it a no-brainer — even though I’m kind of a cheapskate and resistant to subscriptions. At $50 a month — as some Google searches indicate — it’s an easy no. The price listed on Cadillac.com is temptingly in between: $25 a month or $250 a year.” Klarna’s CEO, Sebastian Siemiatkowski, recently touted AI’s role in reducing the company’s w
Mon, December 16, 2024
Tesla’s Cybertruck Canada Push, Longest Range EVs, Brick and Mortar Boom
Shoot us a Text. With barely 2 weeks left in the year, we’re covering the extreme measures Tesla is taking to sell Cybertrucks. Plus, we look at the EVs with the longest range and explore how brick and mortar experiences are booming. Show Notes with links: Tesla is taking unprecedented steps to address waning demand for its Cybertruck by repurposing its premium Foundation Series models and turning its attention to the Canadian market. Foundation Series Cybertrucks, the first produced, were priced $20K higher and bundled with premium features, including laser-etched badging. Many of these trucks remain unsold, prompting Tesla to remove the exclusive features to sell them as standard models at a reduced price. Tesla is shipping over 800 Cybertrucks to Canada for homologation (certifying that a product or vehicle meets the necessary standards to be used in a specific region or country), believing the Canadian market offers stronger sales prospects than the U.S. The company is also leveraging discounts, adding the Cybertruck to its referral program, and slashing lease prices in a bid to boost interest. These efforts are straining Tesla's service and collision centers, leading to longer wait times and logistical challenges for existing customers. Range anxiety continues to be a significant barrier for many EV shoppers , but manufacturers are addressing these concerns with innovative designs and longer ranges, positioning EVs as practical and compelling options for mainstream consumers. Mainstream consumers are shifting focus from sustainability narratives to tangible benefits like lower ownership costs, charging convenience, and exciting driving experiences, with range emerging as the decisive factor in EV adoption. The top 10 EVs with the longest range are: Lucid Air Grand Touring - 516 miles, Chevy Silverado EV First Edition RST - 440 miles, Rivian R1T Adventure Dual Max - 420 miles, Rivian R1S Adventure Dual Max - 410 miles, Tesla Model S AWD - 402 miles, Tesla Model 3 Long Range Rear-Wheel Drive - 363 miles, Hyundai IONIQ 6 - 361 miles, Mercedes-EQ EQS Sedan - 352 miles, Mercedes-EQ EQS SUV - 339 miles, Tesla Model X AWD - 335 miles. In-store shopping isn’t just back—it’s booming. Strengthened by year-round innovations and experiences, brick-and-mortar stores are delivering unmatched value for both consumers and brands.
Sat, December 14, 2024
Mini Cars, Maximum Inspiration with Marysville Toyota
Shoot us a Text. Today we talk about not only what the industry is doing, but why the industry is doing it. Head Writer Chris Reeves shares how Marysville Toyota in Everett, Washington hosted a Toyota Mini Makers Garage event to ignite curiosity and inspire futures. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, December 13, 2024
Tekion-CDK Squabble, Maximising Last 2 Weeks Of Year, GPT Can See
Shoot us a Text. 12 days until Christmas, and today we’ve got Todd Caputo joining the show to discuss the Tekion lawsuit against CDK, how to make the most out of the last 2 weeks and GPT’s latest update that gives it vision. Show Notes with links: The battle over dealership data is heating up as Tekion files a federal antitrust lawsuit against CDK Global, claiming anti-competitive practices. CDK, however, is firing back, labeling the lawsuit as retaliatory and lacking merit. Tekion’s lawsuit accuses CDK of abusing its control over dealership data to stifle competition in the DMS market. CDK claims the suit is retaliation for a cease-and-desist letter regarding Tekion’s “unauthorized access” to CDK’s systems. A spokesperson for CDK called the lawsuit a “marketing stunt” and emphasized its history of facilitating dealer and vendor data transfers. Tekion cited CDK’s initial refusal to share data with Asbury Automotive Group as an example of anticompetitive behavior. A court ruled in October that CDK must provide Asbury with data for its pilot of Tekion’s system, following delays by CDK. ChatGPT can see . OpenAI introduced live video input and screen-sharing capabilities for ChatGPT during its Day 6 live stream event. Users can now analyze and discuss visual contexts in real time through a new video icon in the mobile app. The update is available to Plus, Pro, and Team subscribers, with Enterprise and Edu users gaining access in January. A new festive voice option lets users chat with Santa, available as a seasonal feature until early January. As this upgrade fulfills OpenAI’s promise of visual understanding, further solidifying the shift towards conversational AI with advanced vision capabilities.OpenAI CEO commented: “This brings ChatGPT closer to true multimodal interaction.” Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, December 12, 2024
GM Shuts Down Cruise, Dealer Sentiment Up, Meet Willow, the Fastest Computer
Shoot us a Text. With only 3 Thursdays left in the year, we’re covering how General Motors has shut down its robotaxi division. Plus, dealer sentiment is up now that we’re past the election, and Google has announced a potentially massive breakthrough in quantum computing. General Motors (GM) has decided to shut down its Cruise robotaxi division after years of significant investment and high hopes. Once considered a $50 billion revenue opportunity by 2030, the move signals a shift in GM's strategic focus. GM shares briefly rose following the announcement, reflecting investor relief over reducing the estimated $10 billion spent on Cruise’s development. Cruise employees were notified via Slack , linking to a press release titled “GM to refocus autonomous driving development on personal vehicles,” sparking frustration among the workforce GM plans to integrate some Cruise talent into its driver-assistance technology programs while doubling down on gasoline-powered trucks and SUVs, which remain its profit drivers. CEO Mary Barra defended the decision, stating: “We looked at the amount of money to deploy a robotaxi business and to maintain that business… it’s quite a bit of capital. A robotaxi business is not GM’s core business.” The latest Q4 2024 Cox Automotive Dealer Sentiment Index (CADSI) brings a wave of optimism among U.S. auto dealers, reflecting improving confidence in the industry despite lingering challenges in the current market. The market outlook index rose to 54, a substantial leap from 42 in Q3, marking the largest quarterly surge in CADSI history. Dealers credit political clarity and potential economic measures like tax rebates for the boost. Franchised dealers are more optimistic (index 50) compared to independent used-only dealers (index 39). The top concerns for dealers in Q4 2024 are economic conditions (56%), high interest rates (52%), weak market conditions (37%), the political climate (35%), and rising expenses (33%). “The recent resolution of political uncertainty...has cleared the path for a more optimistic outlook on future auto market conditions,” said Jonathan Smoke, chief economist at Cox Automotive. Google has unveiled Willow, its latest quantum computing chip, claiming a monumental breakthrough in error correction and computation speed . However, experts re
Wed, December 11, 2024
You Can Buy Cars On Amazon, Rivian Tops Satisfaction, Small Biz Sentiment Up
Shoot us a Text. On this hump day, we’re covering the news that Amazon’s partnership with Hyundai has finally gone live for the general public. Plus, Rivian tops a recent survey of brand satisfaction, and small businesses are the most optimistic they’ve been in over 3 years. Show Notes with links: Amazon has opened its car shopping marketplace , Amazon Autos, to 48 cities, including major hubs like Los Angeles, Dallas, and Miami. The platform offers a streamlined buying experience, starting with Hyundai as its launch partner. Shoppers can browse, finance, and schedule vehicle pickups entirely through Amazon's ecosystem. Hyundai is the first automaker onboard, with more brands expected to join in 2025. Amazon emphasizes that local dealerships remain integral to transactions. "Dealers are the sellers of record," said Fan Jin, Amazon Autos’ global head. “The online experience will drive happy customers to their dealerships,” The platform promises upfront pricing and trade-in valuations handled online for a seamless checkout experience. Amazon plans to integrate more features, such as test drives and expanded financing options, while adding more dealerships and cities. Rivian, BMW and Tesla top the Consumer Reports brand satisfaction survey , which shows that EV brands are excelling in owner loyalty while traditional automakers fight for consistency. An impressive 86% of Rivian owners would buy again, cementing the brand’s status as a leader in owner satisfaction. Tesla rose two spots in rankings but saw a slight dip in owner buy-again sentiment compared to last year. The top five brands overall are Rivian, BMW, Tesla, Porsche, and Lexus. The bottom five are Ram, Chrysler, Nissan, Volkswagen, and Jeep. The Consumer Reports survey highlights how automakers with broad, consistent lineups build long-term customer loyalty, while those with uneven lineups struggle. Small business confidence in the U.S. has surged to its highest level since mid-2021 , driven by post-election optimism. The National Federation of Independent Business (NFIB) reports significant improvements in economic expectations, hiring plans, and sales outlook. The NFIB Small Business Optimism Index rose to 101.7 in November, marking an 8-point jump. 36% of small business owners expect the economy to improve, the highest since June 2020. Plans to hire increased to the highe
Tue, December 10, 2024
Stellantis Steadies, EVs Last For 20+ Years?, Sora Is Here
Shoot us a Text. The internet is abuzz this morning as OpenAI released its long-anticipated video generator, Sora, to the public. But before we get there, we have to talk about Tim Kuniskis coming back to Stellantis as the new Ram CEO, and how studies are suggesting that EVs could last longer than ICE vehicles. Show Notes with links: Tim Kuniskis is back at Stellantis, stepping in as the new Ram truck brand CEO after a brief retirement. The return comes amidst a significant leadership shake-up following CEO Carlos Tavares' resignation. Kuniskis' comeback has been met with excitement from dealers who value his market insights and approachable leadership style. Chrysler CEO Chris Feuell moves to lead Alfa Romeo in North America. Jeff Kommor returns as U.S. sales head, reversing a prior restructure of retail and commercial divisions. The shake-up follows a turbulent year for Stellantis, marked by declining sales and high inventories. Michael Bettenhausen of Stellantis’ U.S. dealer council states: “Tim brings a wealth of knowledge, and everyone in the company has leaned on him for guidance at some point.” Despite myths about rapid degradation and expensive replacements, evidence suggests EV batteries are far outlasting expectations , offering long-term reliability for secondhand buyers. Studies show EV batteries retain 90% capacity after 62,000 miles and 87% after 186,000 miles, with an annual degradation rate of just 1.8%. Factors like DC rapid charging and hot climates can increase degradation, but advancements in battery management systems are mitigating these risks. Real-world data reveals early EV models like the BMW i3 and Tesla Model S retain over 80% capacity after nearly a decade. Experts suggest smaller battery buffers and more transparent reporting could further reduce costs and boost confidence in secondhand EVs. “The cost of maintenance is significantly lower,” notes Geotab CEO Neil Cawse. “Brake pads, wipers, and that’s about it.” Get ready for all the AI videos to hit your social media feed, as OpenAI’s latest innovation, Sora, has been released, letting users generate videos from text and other inputs, marking a major leap in AI creativity. Available to ChatGPT Plus and Pro subscribers, Sora offers tools to create, remix, and animate videos up to 1080p resolution and 20 seconds long. Features include “storyboards” for multi-prompt sequences, AI-driven video blending
Mon, December 09, 2024
Average Age of Cars = 13.6 Yrs, CO Dethrones CA, Billions Lost Due To Poor Experiences
Shoot us a Text. As we enter a new week, we’re considering how the average age of cars is affecting parts and service. Plus Colorado is now the most EV state in the US, topping California, and a new study is showing that bad customer service is costing retail stores billions. Show Notes with links: Despite a record number of aging vehicles on the road, the auto repair and parts industry is facing challenges as economic pressures affect consumer spending habits. The average passenger car is now 13.6 years old, up from 8.4 years three decades ago, creating a high demand for maintenance. Inflation, higher interest rates, and supply chain issues have led consumers to defer maintenance or opt for cheaper, off-brand parts. Companies like Monro, Genuine Parts, and Valvoline have reported significant drops in sales, citing cautious consumer spending. Carfax data shows 30% of vehicles are overdue for tire rotations, while 19% are late for oil changes, despite the high return on maintenance investment. Executives from AutoZone and O’Reilly Automotive predict a bounce-back as deferred repairs eventually become unavoidable. Colorado has dethroned California, emerging as the nation’s leader in EV sales , with a stunning 25.3% of new vehicle sales being electric in Q3 of 2024. Here's what’s driving the surge: Residents enjoy up to $12,500 in combined state and federal EV tax credits. Over 5,500 public charging ports are operational, with $5M allocated for 576 additional ports in 2024. 82% of EVs sold in the state are fully electric, signaling robust consumer demand. Governor Jared Polis champions EVs as key to achieving net-zero emissions by 2050, urging residents to act before state tax credits decrease in 2025 from $5000 to $3500. Will Toor, Colorado Energy Office Director, states, “Our commitment to making electric vehicles affordable and reliable is paying off.” Retailers are losing an estimated $262 billion annually due to inadequate in-store experiences, according to a study by Forsta. Nearly half of negative customer reviews are tied to issues like mismanaged checkouts and unhelpful staff, leading to frustration and lost sales. The study revealed that 74% of US adults will abandon a store without making a purchase after a bad experience. While online sales on
Sat, December 07, 2024
This Dealer Provided Thanksgiving Meals to Over 2,500 People
Shoot us a Text. Today on the Saturday episode, Kyle Mountsier and Kristi Canada talk about celebrating Head Writer Chris Reeves birthday! Kristi shares about a dealership in Fort Dodge, Iowa, collaborating with a culinary arts program to provide Thanksgiving meals for over 2,500 people and an additional 1,000 meals for the community. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, December 06, 2024
Subaru Tops Reliability List, Tesla Intensifies Leasing, 12 Days of Ship-Mas
Shoot us a Text. As we end the first week of December, we’re talking about how Subaru has risen to the top of Consumer Reports 2025 Brand Report Card, how Tesla is tapping into leasing to hit its ambitious sales targets, and OpenAI’s 12 days of product announcements and enhancements. Show Notes with links: Subaru dominated Consumer Reports’ 2025 Brand Report Card and reliability rankings, while domestic automakers struggle to keep pace in safety, performance, and reliability metrics. Subaru had an overall score of 82 on the report card, outperforming BMW (78) and Lexus (77). It also topped the reliability rankings for the first time, dethroning Lexus and Toyota. Brands like Honda, Kia, and Hyundai joined Subaru, Lexus, and Toyota in dominating the top 10 for both reliability and overall performance. Chrysler jumped eight spots to 16th, while Ford, GM, and Jeep fell in rankings due to issues with pickups and new EV models. Jeep finished last for the second consecutive year. Plug-in hybrids and EVs remain less reliable than conventional hybrids, though the gap is narrowing. Consumer Reports suggests hybrids as the best choice for reliability and efficiency. Automakers like Subaru and Toyota are benefiting from long-term strategies and incremental improvements. “The more you change, the more errors can crop up,” said Jake Fisher, Consumer Reports’ senior director of auto testing. Tesla is making a strong push into leasing to sustain its U.S. sales momentum as competition in the EV market intensifies and rivals capitalize on federal tax incentives. Tesla’s U.S. lease penetration rose from 8% in January 2023 to a peak of 31% in April 2024, adjusting down to 15% in September. Some automakers report lease penetration rates of up to 90% for EV models, leveraging the $7,500 federal tax credit to make leases as affordable as combustion vehicles and hybrids. Tesla now allows buyouts for all its vehicles, including the Model 3, Model Y, and Cybertruck, enhancing appeal compared to competitors. CEO Elon Musk has set a target to surpass last year’s 1.8 million global deliveries, despite Tesla reporting a 2.3% decline in sales through the first three quarters of this year. As part of its "12 Days of Ship-mas," OpenAI is rolling out exciting updates to ChatGPT, including a new Pro tier and major model improvements designed to enhance speed, accuracy, and reasoning capabilities. ChatGPT
Thu, December 05, 2024
GM Takes $5B Hit in China, $2M Treasure Hunt
Shoot us a Text. This Thursday morning, we’re covering GM having over $5B in non-cash charges with its China operations and how a crypto millionaire is launching a unique $2M treasure hunt. Show Notes with links: General Motors announced over $5 billion in non-cash charges tied to its struggling operations in China, reflecting the immense challenges foreign automakers face in the world’s largest auto market. GM faces charges of $2.6-$2.9 billion for restructuring and $2.7 billion for reduced value in its joint-venture with SAIC. The company’s Chinese operations saw a 59% sales drop through November, selling 371,000 units compared to BYD’s 3.7 million. GM isn’t alone in facing challenges in China—Volkswagen has seen declining sales, Nissan is cutting 9,000 jobs, and Ford is shifting focus to vehicle exports as competition from local automakers intensifies. CEO Mary Barra has described China as "untenable for many corporations." Some experts are concerned that the Chinese market may not be viable for Western automakers, with Bernstein analysts saying: “Headwinds in China remain too great to create meaningful profitability.” Entrepreneur Jon Collins-Black has launched a nationwide treasure hunt , hiding five chests worth $2 million across the U.S. Clues are embedded in his new book, There’s Treasure Inside. Collins-Black is a Bitcoin millionaire with a passion for unique collections. The treasure includes items like Bitcoin, shipwreck bounty, rare Pokémon cards, and historical artifacts from figures like George Washington and Amelia Earhart. Each chest is custom-made by a blacksmith, with one larger chest holding the "lion’s share" of riches. Over five years of planning went into this project, including expert consultation and detailed documentation of the treasures. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, December 04, 2024
Nissan Reassures Dealers, US Adding EV Chargers, Google’s AI Gen Video
Shoot us a Text. We’re coming to you live from Bozard Ford Lincoln as we’re finishing up our More Than Cars shoot. Today, we’re talking about how Nissan is trying to reassure its dealers that the sky isn’t falling, how the US added 12,000+ new EV chargers in Q3, and how Google’s Veo, a generative AI video model, beat OpenAI’s Sora to market. Show Notes with links: Nissan Motor Co. is under pressure as financial challenges force the automaker to cut jobs and slow production. Activist investors and speculation about its future as an independent company are adding to the turmoil. U.S. dealers received a memo from Nissan Americas Chair Jeremie Papin outlining turnaround priorities: product competitiveness, business stabilization, and growth. Nissan has slashed its full-year income outlook by 70%, cut $2.6 billion in expenses, and laid off 9,000 workers globally, including 500 U.S. salaried employees. Market share has plummeted, dropping 25% over five years to just 5.6% in the U.S., with dealership profitability hitting a 15-year low. Production reductions include a 17% U.S. output cut, fewer assembly shifts, and an anticipated 100,000-vehicle drop in fiscal year production. Papin reassured dealers of Nissan’s liquidity, stating, “Our $9 billion in net cash allows us to prioritize future investments in research and development.” The US added 12,000 new EV charging ports in the past three months, bringing the total to nearly 204,000 marking a doubling of chargers since late 2020, pre-Biden administration and NEVI Program launch. NEVI (National Electric Vehicle Infrastructure) Formula Program contributed 126 ports across 31 stations in nine states this quarter, an 83% increase in open NEVI ports since Q3. Coverage of DC fast chargers on major corridors grew from 38% in 2020 to 59.1% in 2024; expected to reach 70% by late 2025. 41 states have announced charging projects under NEVI, with 35 awarding agreements for over 3,560 fast charging ports across 890+ locations. Rhode Island became the first fully built-out NEVI state, while states like Kentucky, Hawaii, and Maine opened new stations, advancing access nationwide. The program has allocated nearly $2.4 billion in funding across two rounds to all 50 states, Puerto Rico, and the District of Columbia. $586 million has been set aside for a third round of funding for fiscal year 2025. Google’s Veo, a generat
Tue, December 03, 2024
Jaguar Roars, GM Sells, and we are Filming More Than Cars
Shoot us a Text. Welcome Michael Wood to the show to talk about the Jaguar vision reveal and it seems GM is backing off its battery building game. We are on the ground in St Augustine filming More Than Cars season 2 so follow us along on social media to see what we get into today. Show Notes with links: Jaguar's latest concept car , the Type 00, was unveiled at Miami Art Week, showcasing a radical design departure for the iconic brand. The design cues will inform Jaguar's electric grand tourer slated for 2026. Features sharp, angular styling with a "strikethrough" design motif. The cabin is influenced by architecture, featuring brass bars and a stone seat plinth. "Totems" offer personalized experiences with lighting, scents, and soundscapes. Two striking color schemes: Satin Rhodon Rose and Inception Silver Blue. Marks the rebirth of Jaguar with a focus on sustainable luxury and bold aesthetics. GM will sell its stake in the $2.6 billion Ultium Cells battery plant in Lansing, Mich., to LG Energy Solution. The facility, nearly complete, will become wholly owned by LG and supply batteries to another automaker. GM expects to recover its full $1 billion investment in the plant. The site currently has around 100 employees and plans to scale to 1,700 when fully operational. GM CFO Paul Jacobson stated the move aligns with improving EV profitability and efficiency, emphasizing, “We believe we have the right cell and manufacturing capabilities in place to grow with the EV market in a capital efficient manner.” This sale does not affect GM’s stakes in other Ultium battery plants in Ohio, Tennessee, or its planned partnership with Samsung SDI in Indiana. GM and LG will continue to co-develop prismatic battery cells to reduce costs and improve energy density, alongside introducing more affordable lithium iron phosphate cells for North American EVs. LG Executive Wonjoon Suh noted the deepening collaboration, saying, “Together with GM, we’ve already made tremendous progress.” Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, December 02, 2024
Tavares Dips, BYD Made Your Christmas iPad, Hyundai Gets Swole
Shoot us a Text. Welcome to December as we talk about controversial Stellantis CEO, Carlos Tavares’ abrupt ending. We also talk about a huge partnership between BYD and Apple, as well as Hyundai’s venture into performance. Show Notes with links: Carlos Tavares has unexpectedly stepped down as Stellantis CEO following escalating tensions with the board over sales declines and stock performance. The leadership change highlights the automaker’s ongoing struggles in key markets like North America. Tavares, known for his cost-cutting expertise, clashed with the board over strategic priorities for addressing sales slumps and rising inventories. The board named Chairman John Elkann to head an interim leadership committee while a new CEO is sought, expected by mid-2025. Stellantis shares have dropped 38% in the past year, with North American sales down 17% while models like the Ram 1500 and Jeep Wagoneer have an average of 112 days supply. Dealers and stakeholders criticized Tavares for his approach, with Detroit dealer Jeff Laethem remarking, “It couldn’t get worse,” as inventory challenges grew. UAW President Shawn Fain added, “He’s leaving behind a mess of painful layoffs and overpriced vehicles sitting on dealership lots.” BYD, Tesla’s fiercest EV competitor, has become a crucial partner in Apple’s supply chain, assembling over 30% of Apple’s iPads and expanding its role in producing cutting-edge components like titanium frames for the iPhone Pro. BYD employs approximately 100,000 people and 10,000 engineers dedicated to Apple's supply chain, locally dubbed the "fruit chain," showcasing its significant integration into Apple’s ecosystem. BYD has facilitated Apple’s push to diversify beyond China by establishing production capabilities in Vietnam and India, setting the stage for a broader global supply network. Tim Cook, during his third visit to China this year, highlighted BYD as one of the suppliers “pushing the boundaries of what’s possible,” cementing BYD’s role as an innovation leader. BYD is venturing into AI-powered robots for factories in collaboration with Nvidia. Executive Wang Haoyu stated, “We’re raising many fish in a pool... when a fish matures, we can scoop it out,” underscoring their exploratory and adaptive business model. Hyundai redefines EV fun with the 2025 Ioniq 5 N . By combining performance, quirky features, and a nostalgic twist, this SUV bri
Fri, November 29, 2024
Black Friday Tips and Tactics with Zac Kinch
Shoot us a Text. As we’re all still digesting the fun, excitement and food from yesterday, Black Friday kicks the holiday shopping season into full swing. Today, Zac Kinch, GM of Bob Rohrman Toyota in Lafayette, Indiana, co-hosts the show to share how he keeps his team engaged on holidays and how they’ve created unique marketing strategies to get customers in the door, starting with a $99 car deal. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, November 27, 2024
Presidential Buy/Sell Market, Huge Rivian Loan, Cheap Turkeys
Shoot us a Text. Warm up those appetites, folks. As we get ready to loosen our belts, the buy/sell market seems to be doing the same thing as the Trump era nears. We’re also talking about a gigantic but conditional loan from the government to Rivian, as well as cheaper turkeys for everyone this year. Show Notes with links: The 2024 presidential election outcome is expected to rejuvenate dealership buy-sell activity , as regulatory rollbacks and economic optimism provide a favorable environment for acquisitions. Dealers anticipate eased EV mandates and fuel economy standards, creating market stability. Regulatory changes could improve dealership valuations, especially in California and CARB states. Lower interest rates under Trump could simplify financing for buyers and boost car sales. “It’s going to be the Roaring ’20s,” said Stuart McCallum of Withum. “Trump is certainly bullish on business... I think the M&A market in the dealership world will follow suit,” said Mike Sims of Pinnacle Mergers & Acquisitions. “Should California’s strict requirements get overturned... I would expect a significant increase in buyer demand,” said Erin Kerrigan of Kerrigan Advisors. Rivian has locked in a $6.6 billion DOE loan to resume construction of its delayed Georgia factory , aiming to expand its EV production capacity and create jobs. Rivian originally announced the $5 billion factory in 2021, aiming for 400,000 vehicles annually by 2024. Faced with a cash crunch, construction paused, and plans shifted to build its R2 SUV in Illinois, saving $2.25 billion. The Georgia factory, now slated for 2028, will employ 7,500 by 2030, supported by a $1.5 billion incentives package from Georgia. The DOE loan aligns with federal efforts backing EV infrastructure, such as Ford’s $9.2 billion for battery plants. "This federal support enables us to lay the groundwork for long-term growth," Rivian stated. Thanksgiving dinner costs have dropped slightly this year, but they remain significantly higher than pre-pandemic levels, according to the American Farm Bureau Federation. The average dinner for 10 people costs $58.08, a 5% decrease from 2023 but still 19% above pre-pandemic prices. Turkey prices fell 6% to $25.67 for a 16-pound bird, thanks to lower demand despite a smaller turkey flock due to the avian flu. Other items like milk (-14%), peas (-8%), and celery (-6.4%) saw pr
Tue, November 26, 2024
Porsche’s EV Struggles, CA’s Tax Credit Alternative, Is Air Travel Getting Worse?
Shoot us a Text. 2 days to turkey! Today we’re talking about how Porsche is realigning its EV goals and planning on more ICE and hybrids. Plus, California preps its own EV tax credit that won’t apply to Teslas, and air travel has its most complaints since the pandemic. Show Notes with links: Porsche is pivoting its strategy to address declining BEV sales , planning new combustion-engine models to align with regional demand, while managing challenges in China and profit pressures. Porsche’s BEV sales dropped to 7.3% of all sales through September, down from 12% in 2022. China led the decline, with overall sales falling 29% amid tepid BEV adoption in the luxury market. Porsche is aiming for a leaner China dealer network, anticipating long-term sales dips below peak levels. Porsche’s Q3 operating profit margin dropped to 10.7%, down from 17% in Q2. The company has a goal of 20%. CFO Lutz Meschke emphasized extending combustion-engine offerings, with new Cayenne and Panamera ICE versions planned, saying ““We are currently looking at the possibility of the originally planned all-electric vehicles having a hybrid drive or a combustion engine… What is clear is that we are sticking with the combustion engine for much longer,”” California is bracing for a potential repeal of federal EV tax credits under the Trump administration, with Governor Newsom proposing a state-backed alternative to keep the electric vehicle momentum going. Newsom is looking to revive California’s Clean Vehicle Rebate Program, which previously supported over 594,000 EVs with $1.49 billion in subsidies. The plan could be funded by the state’s Greenhouse Gas Reduction Fund, even as California faces a $2 billion budget deficit. Tesla, which builds EVs in California, likely wouldn’t qualify for a proposed state tax credit as it stands. California is aiming to ban gasoline-only vehicle sales by 2035, targeting 80% EV sales by then. Newsom’s office said in a statement, "The governor’s proposal for ZEV rebates… would be intended to foster market competition, innovation and to support new market entrants," As air travel hits record highs this Thanksgiving, passenger complaints about cramped seating, added fees, and poor service are raising questions about whether flying has become worse — and how to fix it. Airlines are squeezing coach seating while expanding premium opt
Mon, November 25, 2024
Hyundai-Amazon Sales Coming In January, Betting on Auto Bonds, Distracted Holiday Driving
Shoot us a Text. We’re rooting for a great end to the month as we enter Thanksgiving week. Today, we’re talking about how Hyundai and Amazon’s online retail platform could enter its next phase in January, how Wall Street investors are still bullish on auto loans and how this week signals a new level of danger for drivers. Show Notes with links: Thank Dan Shine for having us on Fridays Daily Drive Podcast Hyundai’s online retail platform with Amazon faced setbacks from the CDK cyberattack but is now on track for a January pilot phase launch. Despite technological and operational hurdles, dealers are increasingly optimistic about the program's potential. Over 80% of Hyundai’s 841 dealers expressed interest in the platform, signaling strong support. Hyundai addressed dealer concerns, ensuring sales remain tied to the dealership, not Amazon. The CDK outage disrupted over half of Hyundai’s dealer network, delaying progress. Other challenges include trade-in valuation and flexible financing options. Hyundai CEO Jose Munoz said that “Customers want to go to the dealer to get the car themselves. That’s one of the reasons why a lot of dealers have seen this not as a competition, but as something that reinforces their sales.” Investors are doubling down on auto loans, even as rising delinquencies signal financial stress for consumers. Wall Street remains bullish, betting on a strong economy to balance the risks. Subprime auto bonds sales surged to $40B in 2023, up 17% from last year. Investor demand is immense; some bond deals are oversubscribed by 20x. Auto bond yields have tripled since 2021, with low-grade bonds offering 6%. Delinquencies, now at 3.8%, are the highest since 2010, affecting low-income borrowers most. Analysts argue that car payments are prioritized; “You can live in your car, but you can’t drive your house,” says Daniel Liesener. Thanksgiving week sees a sharp rise in distracted driving , making it one of the riskiest travel periods of the year. Peak travel times amplify those dangers with increased phone use and speeding. Thanksgiving Day distraction rates soar 18% higher than a typical Thursday. Speeding doubles during Thanksgiving week, contributing to additional crashes. The Wednesday before T
Sat, November 23, 2024
Cavender Auto Group Funds New Wing of a Ronald McDonald House
Shoot us a Text. Today ASOTU Head Writer joins Paul and Kyle to talk about how Cavender Auto Group employees gave both money and time to make sure 1000's of families will be taken care of in their biggest time of need. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, November 22, 2024
Dale Pollak Moving On From Cox, F&I Gross Dips, OpenAI Browser
Shoot us a Text. We’re closing out the week talking about how industry titan Dale Pollak will leave Cox Auto at the end of 2025. Plus, almost all of the public groups saw F&I gross profit dip in Q3 and apparently OpenAI is building its own web browser. Show Notes with links: Cox Automotive announced Dale Pollak, founder of vAuto and a pioneer in inventory management , will leave the company at the end of 2025 after nearly 50 years of shaping the industry. Pollak will spend 2024 transitioning key relationships and continuing his influential NADA teachings. At January’s NADA Show, he’ll release Invested, his seventh book on vehicle investment strategy. Since founding vAuto 20 years ago, Pollak has driven innovation and success for Cox Automotive, helping dealers optimize inventory. Steve Rowley, Cox Automotive president, expressed deep gratitude: “Dale has poured himself into our company, our customers, and everything automotive for most of his life. We are very grateful for his unwavering commitment.” Five of the top six public dealership groups experienced slight declines in F&I gross profits per vehicle in Q3 2024. Group 1 Automotive was the exception, posting a modest 1% gain year over year, aided by stronger penetration rates for service contracts and new vehicle financing. AutoNation saw the sharpest decline, with F&I profits falling 6% to $2,589 per vehicle. Lithia Motors faced a 2.8% decline due to lower sales of service contracts. However, its captive finance unit Driveway Financial saw profitability rise, financing 12% of Lithia’s vehicle sales. Asbury Automotive's same-store F&I profit per vehicle dropped 4.9% year-over-year in Q3, falling $108 to $2,111. Sonic Automotive posted a 3% drop and Penske saw a 1.5% dip. Jeff Lick of Stephens noted that F&I remained resilient, contrasting with the sharper spikes in new-vehicle gross profits seen during inventory shortages. OpenAI is reportedly exploring a ChatGPT-integrated browser and AI-driven search tools, challenging areas historically dominated by Google. A potential OpenAI browser would integrate with ChatGPT, enhancing conversational search experiences. OpenAI is also developing "NLWeb," a tool allowing conversational interactions on travel, retail, and real estate sites. OpenAI has hired former Google Chrome developers, signaling se
Thu, November 21, 2024
EV Battery Prices To Plummet, Honda Double Range, Coke’s AI Remake
Shoot us a Text. We’re back at our desks after some time on the road. Today we’re talking about Honda’s plans to double EV range while reducing cost and size, a new study that says price parity between EV and ICE could come as soon as 2026, and the response to an AI-altered Coca-Cola ad. Show Notes with links: Honda aims to double the driving range of its EVs by the late 2020s through the use of innovative all-solid-state batteries. Research head Keiji Otsu describes the initiative as a “game-changer” that could redefine EV capabilities and consumer expectations. A $277 million pilot production line in Japan is set to manufacture these advanced batteries, targeting a 50% reduction in size and a 25% cost reduction by the mid-2020s. This aligns with Honda's broader goal of producing over 2 million EVs annually by 2030 and achieving 100% EV and fuel cell vehicle sales globally by 2040. Talks of collaboration with Nissan have emerged, with Otsu saying “There may be areas where we can work together” on joint material procurement. A new study predicts EV battery prices are on track to plummet nearly 50% by 2026 , powered by advancements in technology and manufacturing. This shift is closing the gap between EVs and gas-powered cars faster than expected. Goldman Sachs predicts battery prices will fall from $149/kWh in 2023 to $80/kWh by 2026 and $60/kWh by 2030. To put it in perspective, a 100 kWh battery for a large SUV could cost around $6,000, while an 800 kWh battery for a semi-truck might be priced under $50,000. Innovations like "cell-to-pack" design simplify battery construction, boosting energy density and reducing production costs. Lithium iron phosphate (LFP) batteries, prized for durability and cost-efficiency, could claim 45% market share by 2025. EVs are expected to reach cost parity with gasoline vehicles as early as 2026, even without government incentives. “Rapid battery price drops and smarter designs will make EVs a mainstream option,” says Nikhil Bhandari of Goldman Sachs Research. Coca-Cola’s decision to remake its iconic 1995 “Holidays Are Coming” ad using AI has sparked both controversy and curiosity. Critics debate the ad’s aesthetics, while Coke sees it as a bold step in exploring generative AI’s potential for creativity and efficiency. Three studios
Wed, November 20, 2024
EV Rollback, jaGUar Copies Nothing, Flying ShakeShack
Shoot us a Text. Welcome to Wednesday as we talk about the likely EV regulation rollbacks on Trump’s Day One. We also talk about a Jaguar rebrand that’s unlike anything we’ve ever seen, as well Delta’s new initiative to serve ShakeShack on first class flights. Show Notes with links: Sean Duffy has been nominated to head the U.S. Department of Transportation by President-elect Trump, with a vision to lead America into a "golden age of travel." His nomination brings significant implications for automotive and transportation policies. A former congressman and Fox News host, Duffy is expected to roll back EV-supportive policies, aligning with Trump’s “Day One” initiatives. EV advocates have expressed concerns about potential climate change impacts under his leadership. He advocates for right-to-repair laws, citing high repair costs linked to automaker patent restrictions and may spearhead advancements in autonomous vehicle policies, including self-driving trucks. “It is imperative a federal policy framework on AVs be put in place,” said Jeff Farrah, CEO of the Autonomous Vehicle Industry Association. Jaguar is charging into a bold new era as it prepares to go fully electric by 2026. Alongside plans for an all-electric lineup, the automaker has unveiled a reimagined logo and identity that apparently attempts to blend its classic heritage with modern flair. The new logo spaces out the letters and mixes upper and lowercase for a sleek look. Jaguar leans on its founder’s motto, “A Jaguar should be a copy of nothing,” now simplified to “Copy Nothing.” Taglines include “delete ordinary” and “live vivid”, with Pop Art-inspired ads featuring very serious, very colorful models. Chief Creative Officer Gerry McGovern says it’s about capturing Jaguar’s essence for today’s world: “This is real,” he told reporters, “not the white stuff.” Their first electric model, a 2026 super-GT, promises exciting new designs. Delta Airlines is taking in-flight dining to the next level with a delicious new partnership with Shake Shack. Starting December 1, passengers in First Class on select flights will be able to enjoy Shake Shack’s iconic Cheeseburger while cruising at 30,000 feet. The burger will first be available on Boston flights, with plans to expand nationwide by 2025. The Shake Shack Cheeseburger features 100% Angus beef, a potato bun, and customizable toppings like lettuce, tomato, and their famous ShackSauce
Tue, November 19, 2024
Supply vs Demand, BYD’s 10 Millionth Vehicle, Record Thanksgiving Travel
Shoot us a Text. We’re live in Petersburg VA this morning as we’re shooting the next episode of More Than Cars. Today, we’re talking about the latest Cars Commerce Industry Insights and what it means for supply and demand, how BYD has produced its 10 millionth new energy vehicle, and how this Thanksgiving could be a record for travel. Show Notes with links: The October Cars Commerce Industry Insights Report reveals that new vehicle supply is way up, while demand has only seen a small increase. New-car demand is up only 2%, while new vehicle supply is up a staggering 26.4% YOY, and new-car days live up 37.4% YOY new-EV supply is up a whopping 35%, which makes those production shutdowns make sense Used-car inventory below $20k is the only price category growing YOY, but remains far below stock levels prior to 2021 Used EVs receive 5.5x more searches than new EVs. The average list price of a used EV is down -9.1% YOY and searches are up 36.6% YOY BYD is marking a major milestone as the first automaker to produce 10 million new energy vehicles (NEVs). The EV leader is riding a wave of growth and expanding globally. Key points include: BYD has reached 10 million NEVs just three years after producing its 1 millionth vehicle October sales hit over 500,000 vehicles, marking the fifth consecutive record month. The company is gaining on global giants, having outsold Nissan and Honda, and is closing in on Ford. Global expansion is in full swing, with new plants in Thailand, Hungary, Brazil, Pakistan, Turkey, and Mexico. BYD’s EVP, He Zhiqi, says the company is scaling fast, hiring 200,000 employees recently to meet surging demand. Turkeys won’t be the only thing looking to take flight this holiday season as Thanksgiving weekend is set to be one of the busiest travel weekends in history. AAA predicts 79.9 million travelers, a 1.7 million increase from 2023. 71.7 million will travel by car, with lower gas prices expected under $3 per gallon. Airlines anticipate a surge, with 31 million passengers projected, a 2 million increase from last year. United Airlines, American Airlines, and Delta all expect record-breaking passenger numbers. Stacey Barber, vice president of AAA Travel, said, “Thanksgiving is the busiest holiday for travel, and this year we’re expecting to set new records across the board, from driving to flying and cruising.” Hosts: Paul J Daly and Kyle Mountsier <br
Mon, November 18, 2024
Carvana Scales Capacity, Most Fatal Car Study, Tech Hiring Slowdown
Shoot us a Text. It’s a busy week around the ASOTU halls as we’re in Florida for MRC and then Virginia for MTC. Today we’re covering how Carvana is scaling its capacity through the ADESA auction network, how Teslas topped a study on the most fatal cars on the road and the tech hiring slowdown. Show Notes with links: Carvana is reimagining its operations through strategic integrations of the ADESA auction network , emphasizing vertical integration and expansion. The used car retailer has converted 3 ADESA sites into multifunctional hubs in 2024, with plans for a 6th site by year-end and introduced Carli, a vehicle tracking system optimizing reconditioning and inventory management. Carvana has increased retail gross profit per vehicle to $3,497 in Q3 2024, up 30% year over year. CEO Ernie Garcia highlights the company’s capacity for processing 3 million vehicles annually with minimal capital expenditure. "Adding capacity without significant time or expense — that’s the key to efficient growth," says Christina Keiser, Carvana EVP of Strategy. A recent iSeeCars study revealed that Tesla vehicles had the highest fatal crash rates among automakers in the U.S., raising questions about how they were driven and their design. Teslas led with 5.6 deaths per billion miles driven, double the industry average of 2.8. Kia (5.5) and Buick (4.8) followed as other high-fatality automakers. The Tesla Model Y recorded a 10.6 fatal crash rate, nearly five times the SUV average, while the Model S rate was twice the average at 5.8. Despite these figures, Teslas scored highly in IIHS and NHTSA crash tests. Analyst Karl Brauer linked the high rates to driver behavior: “The biggest contributor to occupant safety is avoiding a crash...and the biggest factor in crash avoidance is driver behavior.” The post-pandemic hiring landscape reveals a sharp slowdown in tech roles , with oversupply, automation, and changing priorities leaving many professionals facing a white-collar recession. White-collar roles like IT, engineering, and marketing fell 20%-32% from 2018-2024 AI tools, like ChatGPT, have enhanced productivity, reducing the need for new hires in roles such as coding, where efficiency has skyrocketed. Sectors like healthcare bucked the trend, increasing hiring by 10% to address burnout and staffing shortages, while social services remained stable. Job ope
Sat, November 16, 2024
Not Selling On Veteran's Day, but Serving in the Community
Shoot us a Text. Nathan and Chris host the show this Saturday morning and talk about how Sioux City Ford Lincoln closed on Veteran's Day so they could do community service for the veterans in their community. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, November 15, 2024
Is The EV Tax Credit Dead?, GM’s Free Night EV Charging, On-The-Job Training Broken
Shoot us a Text. We’re almost at the end of another week, and today we’re covering how it seems that the Trump team is getting ready to eliminate the EV tax credit. Plus, GM is working with EV owners in Texas to offer free nighttime EV charging, and how on-the-job training is becoming harder to find. Show Notes with links: The Trump transition team is set to eliminate the $7,500 EV tax credit in an upcoming tax reform, a shift that could hinder the U.S.'s EV progress. Despite Tesla’s reliance on this subsidy, representatives of the company appear supportive of the repeal. Killing the credit aligns with Trump’s campaign pledge to end Biden's "EV mandate." Tesla, though impacted, may benefit as the change would likely harm its competitors more, especially legacy automakers like GM. Energy transition discussions are led by oil magnate Harold Hamm and North Dakota Governor Doug Burgum. Eliminating the subsidy could free up funds to extend Trump’s major tax cuts. The Alliance for Automotive Innovation stressed the importance of credits, calling them "critical to cementing the U.S. as a global leader." General Motors is collaborating with Reliant Energy to offer free nighttime charging for Chevy EV owners in Texas. The initiative, aimed at making EV ownership more affordable, leverages renewable energy credits to support sustainable charging. Chevy owners enrolled in Reliant’s EV plan get free charging from 11 PM to 6 AM, offset through monthly bill credits. Users must specify an EV on GM Energy’s Smart Charging Portal to qualify. This promotion is part of a broader trend as automakers like Ford offer perks to attract hesitant EV buyers. GM and Reliant claim charging is renewable, thanks to Renewable Energy Certificates (RECs), though these credits have been criticized for masking fossil fuel use. In many companies, new hires and even seasoned workers are left struggling due to inadequate training . With limited mentorship and lack of clear guidance, employees are increasingly expected to "figure it out" alone. High job turnover, hybrid work, and cost-cutting have weakened structured training. Only 50% of Gen Z workers report having mentors, despite 83% valuing it. Less than half of employees feel they fully understand their job expectations, per Gallup. Tech-based training has limitati
Thu, November 14, 2024
Car Buying Harder In October, Cybertruck Day Supply, OpenAI’s Operator
Shoot us a Text. It’s Thursday, and we’re almost halfway through November. Today, we’re talking about a CDK study that says car buying got harder for consumers in October, how Tesla has exhausted its Cybertruck reservation list and OpenAI’s autonomous Operator that’s coming to a computer near you. Show Notes with links: According to a recent CDK Global study, shoppers struggled a bit more in October with finding the right car as inventory disruptions such as stop sales, model turnovers, and natural disasters took a toll on the Ease of Purchase. 87% of buyers reported an easy car-buying experience, down from September’s 89% and August’s record 93%. Only 49% of shoppers could buy their preferred vehicle on the lot, down from 54% in September, with the test-drive ease rate also slipping to 78%—a rare dip below 80%. Complaints about "too many things to choose from" and excessive paperwork led to a slight drop in ease for form completion, falling to 70% in October from 72% in September. The time it took to finalize purchases increased for 32% of buyers, up from 25% in September. Just 15% experienced a quicker purchase process, a significant drop from last month’s 25%. Tesla has begun offering Cybertrucks directly from new vehicle inventory , indicating that its once-massive reservation backlog may have dwindled. U.S. buyers can now order and receive a Cybertruck in roughly a week, suggesting Tesla has exhausted its initial backlog. Despite over a million initial reservations, Tesla has only delivered approximately 50,000 Cybertrucks in the United States so far. Changes in the production model, including a higher price and lower range than originally promised, may have deterred some reservation holders. Tesla has expanded Cybertruck deliveries to Mexico and Canada to match rising production capacity. OpenAI is set to release a new AI agent, codenamed "Operator ," designed to take actions on users' computers, like writing code or booking travel. The tool is expected to launch as a research preview in January. Operator will be available through OpenAI’s API, allowing developers to integrate it into various applications. The tool aligns with an industry trend toward AI agents capable of completing complex, multi-step tasks autonomously. Competitors like Anthropic, Microsoft, and Google are also developing similar agent tools to manag
Wed, November 13, 2024
Rivian, VW and Scout… Oh My, Fain Struggles To Unionize Plants, ICE Dodge Charger
Shoot us a Text. Today’s the day when we release More Than Cars episode 4: Mohawk Chevrolet at 1PM! Oh and we’re also talking about Rivian and VW’s finalized joint venture, how the UAW is struggling to gain momentum following last year’s big wins and how Dodge is adjusting its EV and ICE muscle car plans. Show Notes with links: Rivian Automotive and Volkswagen Group have finalized a significant joint venture worth up to $5.8 billion to advance electrical architecture and software for future EVs, utilizing Rivian's current tech. Since the venture was announced in June, VW’s investment in Rivian has grown from an initial $5 billion. Rivian brings its advanced EV technology, while VW contributes its vast manufacturing scale. The initial phase includes deploying Rivian’s system in VW vehicles, launching Rivian’s R2 by 2026 and VW's Scout brand vehicles by 2027. The partnership focuses on electrical architecture and software, not hardware, though Scout Motors CEO Scott Keogh hinted Scout’s EVs will leverage the tech. “By combining complementary expertise, we aim to reduce costs and accelerate new tech,” VW’s Oliver Blume stated. This venture is crucial for Rivian’s financial strategy, as it faced a $1.1 billion Q3 loss amid slowed revenue and production. Outspoken UAW President Shawn Fain is facing mounting obstacles in organizing nonunion U.S. factories owned by Toyota, Hyundai, Mercedes, and others amid a shifting political and corporate landscape. Following historic labor deals with the Big 3, Fain aimed to build on momentum, targeting new factories, especially in the South. Despite a spring win at VW, recent efforts at Toyota and Hyundai encountered resistance, as these automakers raised wages to counter unionization drives. Initially focusing on a rapid approach, Fain encouraged online union pledges and fewer traditional one-on-one meetings. At Mercedes in Alabama, a quick vote resulted in a narrow loss, with 56% against unionizing. “It wasn’t like we got annihilated there,” Fain said. “That was a very, very close election.” Fain emphasized the importance of the UAW’s first contract with VW in Chattanooga, saying, “We won in a place where no one said we could win. Now, the argument is, ‘We’re not winning fast enough,’ when initially it was, ‘We can’t win.’” Dodge is moving up the launch date of its gas-powered Charger Sixpack to early summer 2025, five months ahead of schedule, in response t
Tue, November 12, 2024
VinFast Gets Cash Infusion, Phases of AI In Dealerships, Prompt of the Week
Shoot us a Text. This Tuesday morning we are excited to publish the very first AutoIndustry.ai weekly email, covering everything the industry needs to know about AI. But before we talk about that, we’re covering how VinFast’s founder is jumping in to keep the company afloat again. Show Notes with links: VinFast is getting another major capital infusion from its billionaire founder Pham Nhat Vuong as well as parent company Vingroup to aid its global expansion. Pham Nhat Vuong, Vietnam’s first billionaire, pledged a personal investment of $2 billion, and Vingroup plans to loan an additional $1.38 billion. Existing loans from Vingroup to VinFast Vietnam (valued at 80 trillion dong) will convert to preferred shares. Vuong and Vingroup pledge continued support through 2026 to reach “cash flow equilibrium by the end of 2026.” Vuong said in June that he was willing to bet all his money on the company’s growth. As AI investments accounted for almost 40% of VC deals in Q3, dealerships should prepare for a surge in AI-driven solutions , likely unfolding in three phases, according to guest contributor Steve Greenfield. Phase 1: The AI-Powered “Co-Pilot”: AI “Co-Pilots” can double productivity by handling routine tasks, allowing employees like BDC agents to respond to twice as many leads and accelerating accounting workflows. Phase 2: The AI-Powered “Intelligent Agent”: Intelligent Agents, like Siri or Alexa, operate independently, managing tasks such as answering dealership calls and scheduling service appointments 24/7, making a “24/7 dealership” possible. Phase 3: AI Replaces Roles: Autonomous AI will start replacing repetitive roles. With human capital making up to 80% of costs, dealerships may see profitability benefits while AI handles tasks once managed by people. Steve’s Advice to Dealership Employees: Embrace AI changes and stay updated on new technologies to help your dealership thrive in the evolving landscape. AI Prompt of the week: “Please help me develop a prompt that captures my company's unique voice, tone, language, and energy. I want to ensure that AI-generated content aligns with our brand’s personality and connects authentically with customers, even as we enhance and streamline the process with AI. To do this, ask me one question at a time until you’re able to write a comprehensive, brand-aligned prompt for generating future content.” Pro Tip from the AutoIndustry.ai writing team: “Just because you’re talking to a chatbot doesn’t mean you should forget your manners. Al
Mon, November 11, 2024
$1.4B of Carvana Stock, Transparency Gap Closing, Dual IHOP-Applebees
Shoot us a Text. Happy Veteran’s Day and thank you to all who have served! Today we’re talking about Ernie Garcia II cashing in on $1.4B of Carvana stock, a new Capital One study highlighting the role of trust and transparency in the car buying process and an IHOP-Applebees shared location. Show Notes with links: Ernie Garcia II, father of Carvana CEO Ernest Garcia III, has strategically sold $1.4 billion of Carvana stock since April, benefiting from a notable rally in the company’s share price amid an impressive restructuring turnaround. Garcia II has offloaded nearly 10 million shares, transitioning his Class B voting stock into Class A shares for liquidation. He still controls 69.2 million Class B shares, making up the core of his $17.6 billion fortune. Garcia’s last major sell-off was in 2021 when Carvana shares peaked, raising questions on the timing of his sales. The stock’s rebound from under $4 at the end of 2022 to around $240 has renewed confidence in the company’s trajectory. Nejat Seyhun, a finance professor at the University of Michigan, said “He might just have other alternatives and other investments… or maybe he expects the stock could fall—it’s better to sell early than late.” Capital One's 2024 Car Buying Outlook highlights the role of trust and transparency in car buying, emphasizing the opportunity for dealers to bridge the digital and in-person experience. 88% of buyers complete at least half of the car buying process in person, up 5% from 2023, underscoring the dealership’s essential role. Digital tools are popular for early steps, with most buyers researching models, inventory, and financing options online before heading to the dealership. Trust drives loyalty: buyers are more than twice as likely to return to a dealer they trust, with 48% willing to pay more if they feel secure in the relationship. Transparency is key: while 73% of dealers see the process as “very transparent” or “completely transparent”, only 55% of buyers agree. “In a time when the ways cars are designed, sold, and purchased are rapidly evolving, the one thing buyers and dealers should see clearly from the start is each other,” says Sanjiv Yajnik, President of Financial Services at Capital One. Applebee’s and IHOP are launching their first-ever dual-branded location in the United States, set to open in Seguin, Texas, in early 2025. The Seguin site will combine Applebee’s lunch and dinner
Sat, November 09, 2024
Crowdsourcing Where To Give Back
Shoot us a Text. Happy Saturday! Nathan and Chris host the show today to recap the ASOTU team's time in Austin, TX this week and then share some of the good we're seeing in the auto industry. Park Place Dealerships donates $100,000 in small grant giveaways to local charities. The charities are submitted by employees and community members and in a couple of weeks the Irvine, TX community will learn who has won the grant awards. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, November 08, 2024
CARS Rule Under Trump, Mexico Confronts Musk, AI Robot Art
Shoot us a Text. Welcome to Friday! As we wind down the week, we’re talking about how the Trump Presidency could affect the FTC CARS Rule. Plus, Mexico wants answers from Musk as to Tesla’s Mexico Gigafactory and a painting by an AI robot sold for over $1M at auction. Show Notes with links: The Federal Trade Commission’s new regulations to combat auto retail scams, known as the CARS Rule, face an uncertain future with the potential of President-elect Donald Trump’s second term. Here’s a breakdown of what might be ahead: Trump’s election might reduce federal oversight of dealership practices, as he’s known for favoring deregulatory policies. With the CARS Rule already contested by the National Automobile Dealers Association, the rule could lose FTC support in court, leading to a possible halt. Francis Curran from Tully Rinckey law firm says Trump’s supporters generally resist regulatory measures, making the CARS Rule a likely target. However, federal reductions may cause states to increase their enforcement of fair practices in auto transactions. The FTC’s “Unfair or Deceptive Fees” rule may remain, as attorneys like Chris Capurso believe it resonates more with consumers and imposes fewer admin burdens. “Whether or not [Trump] cares about the FTC, he’s probably going to appoint people who will roll back some of that,” says Francis Curran, highlighting a potentially quieter but still active FTC. Following Trump’s election victory, Mexico is pushing Tesla for clarity on the previously announced Gigafactory Mexico, now on hold. Tesla announced Gigafactory Mexico in March 2023, aiming for rapid construction like in Shanghai. Plans stalled by year-end, with Elon Musk citing the uncertain global economy as a factor, opting to build its Robotaxi in Texas, leaving other planned vehicle models for Gigafactory Mexico canceled. Mexico fears heightened tariffs on Mexican goods and wants answers from Musk. Mexico’s Economy Minister Marcelo Ebrard said in a recent radio interview: “I’m going to set up a meeting with (Musk) soon so that he tells me exactly what he’s thinking and see what we can do so this project moves forward,” Ai-Da, the world’s first humanoid robot artist, set a new milestone as her AI-created portrait of Alan Turing sold at Sotheby’s auction for $1,084,800,. The piece, titled A.I. God, initially estimated at $120,000 to $180,000, attracted 27 bids. The portrait honors Turing, t
Thu, November 07, 2024
Car Dealer Wins Senate Seat, CBT 40 Under 40, $15M Chat.com
Shoot us a Text. We’re live from Austin this morning where we’ll be speaking to the ATAE Comms Directors, but before that, we’re talking about how car dealer Bernie Moreno is headed to the Senate, the second annual list of CBT 40 Under 40 honorees and how Open AI spent a whopping $15M on the Chat.com domain. Show Notes with links: Bernie Moreno, former auto dealer and Trump-backed Republican, flipped a longstanding Democratic Senate seat in Ohio, securing a narrow victory over Sherrod Brown. Moreno won 50.2% of the vote, defeating Brown’s 46.4%, marking a GOP gain in the Senate. The race was one of the most expensive Senate contests in history, crucial for Republican control. His opponent, incumbent Sherrod Brown, targeted Moreno’s dealership past, implying he “would say anything to sell a car.” This line of attack backfired, galvanizing support from auto industry insiders who saw it as a slight against the profession. A critic of federal EV mandates, Moreno argued for consumer choice, advocating that Ohioans—and the auto market—should not be subjected to standards set by California. Moreno credited auto industry colleagues for their unwavering support, stating, “I appreciate the hundreds of phenomenal entrepreneurs in the car business.” CBT News has announced its second annual 40 Under 40 awards , spotlighting rising stars in the automotive retail industry. These honorees demonstrate exceptional talent in areas like sales, marketing, management, and innovation, shaping the future of automotive retail. The award recognizes contributions in sales, customer experience, and community service and aims to inspire future leaders in automotive retail. Co-founders Bridget and Jim Fitzpatrick commend honorees' resilience: "The resilience and dedication demonstrated by every member of the retail automotive community is truly inspiring." Friends of ASOTU: Nathanael Greklek, Chief Digital Brand Leader at Mohawk Auto Group, and Michael Lucki, GM/Operating Partner at Riverhead Mazda OpenAI has made waves by purchasing the chat.com domain from HubSpot’s Dharmesh Shah, a move signaling their evolving approach to user interaction. Sam Altman, OpenAI’s CEO, shared the new domain, which directly redirects to ChatGPT. Originally bought by Shah for $15.5M, he later sold it to OpenAI, reportedly at a profit. Shah cited "Chat-based UX" as the next big trend in software for natural, intuitive interactions. Shah hinted that OpenAI paid with shares
Wed, November 06, 2024
Trump’s Win Rattles EVs, Musk’s Influence, and IKEA’s Meatball Move
Shoot us a Text. Donald Trump’s return to the White House could disrupt the auto industry’s EV ambitions. Plus, Elon Musk’s advisory role with the new administration and his plans for autonomous tech. And, IKEA opens its first stand-alone restaurant in London. Show Notes with links: Former President Donald Trump has won the 2024 election , and his return could lead to major shifts for the auto industry, especially around electric vehicle (EV) policies, trade, and incentives. Here’s what might be in limbo for automakers: EV Regulations: Trump may roll back aggressive EV mandates set under Biden, reducing pressure on automakers to hit strict electrification targets. Tax Credits: Biden-era EV tax credits could be at risk, impacting demand and profitability for manufacturers deeply invested in electric tech. California’s Emission Standards: Trump might revoke California’s right to set its own emissions standards, affecting states that follow its lead. Trade Policies: Trump may tighten restrictions on Chinese vehicle parts, intending to boost domestic production but likely increasing vehicle costs. The Elon factor: Here’s how Musk’s involvement could shape auto policies and beyond: Trump has proposed forming a government efficiency committee led by Musk, aiming to cut $2 trillion from the federal budget. Musk has already expressed his interest in reducing government spending by 30%. Musk advocates for a unified federal approval process for autonomous vehicles, reducing state-by-state regulatory inconsistencies. He commented, “If there is a department of government efficiency, I’ll try to make that happen.” While Trump is generally less favorable toward EV mandates, analysts speculate that Musk’s influence may push for selective pro-EV policies that align with Tesla’s interests. Musk, a long-time proponent of U.S.-based manufacturing, may support Trump’s trade stance on limiting Chinese parts imports, which could impact supply chains and costs for EV makers. Tesla stocks spiked 15% following the election, underscoring investor optimism over Musk’s potential influence in the new administration. General Motors has claimed the number two spot in EV sales in the U.S. for Q3 2024, with 32,000 EVs sold across multiple brands. Ford, however, disputes GM's approach to these numbers. GM’s EV lineup includes the Chevy Silverado, Blazer, Equinox EVs, GMC Hummer EV, and Cadillac Lyriq, all on the Ultium platform. GM has sold 370,000 EVs in North America since 2016, with 300,000 of those in the U.S. Tesla remains far ahead, wi
Tue, November 05, 2024
Stellantis Slashes MSRPs, Tesla Leans Into Autonomy, Starbucks Brings Back Sharpies
Shoot us a Text. Happy Election Day! Well, now that we’ve covered that… today we’re talking about how Stellantis listened to dealers and cut prices on some Jeep models, how Tesla has given up on the human-driven affordable EV, and how your name might start being incorrectly spelled on Starbucks cups this fall. Show Notes with links: Stellantis has decided to significantly reduce prices on its 2025 Jeep Wagoneer and Grand Wagoneer models to address dealer concerns about high prices slowing inventory turnover. Price cuts range from $3,000 to $7,000, depending on the model, with the base Wagoneer now starting at $61,945, while the Grand Wagoneer begins at $86,945. The U.S. market has shown demand; Wagoneer sales are up 79% and Grand Wagoneer sales up 25% through September, supported by both retail and fleet sales. Standard features have also been enhanced, including adaptive cruise control on the Wagoneer and a passenger display on the Grand Wagoneer. Bob Broderdorf, Jeep North America chief, stated, “By lowering MSRPs as much as $7,000 and enhancing standard equipment... these vehicles have become even more compelling.” Tesla CEO Elon Musk has put to rest hopes for a human-driven $25,000 EV . He recently revealed that an affordable Tesla would only make sense as a fully self-driving vehicle, shelving plans for an anticipated mass-market, human-driven model. Musk called the idea of a $25K human-driven EV “pointless” and “silly” without full autonomy. Tesla’s updated plan now features the “Cybercab”, a two-door, two-seat autonomous vehicle priced at $25,000, planned for 2026. This strategy change represents a pivot from Tesla's initial goal of building 20 million affordable, human-driven vehicles annually by 2030. Tesla analyst Seth Goldstein “Tesla realized they were late to making an affordable vehicle versus their Chinese-EV peers… So, they changed their strategy rather than make a large investment to produce a new vehicle.” Get ready for your name to be spelled incorrectly on your coffee cup again. Starbucks CEO Brian Niccol is bringing Sharpies back into stores as part of his "Back to Starbucks" strategy, aiming to revive a personal touch that Starbucks lost during the pandemic. After three quarters of declining sales, Niccol is cutting unpopular items, like the Oleato, and removing charges for non-dairy substitutes. Sharpies
Mon, November 04, 2024
Hard-To-Get Floorplans, Voice Control Over Physical Buttons, Online Choice Overload
Shoot us a Text. We’ve got Michael Cirillo in the studio on this Monday, as we’re talking about how its becoming harder for new auto dealers to secure floorplan loans, how Rivian has decided that voice control is better than physical buttons and how online customers are abandoning carts because of choice overload. Show Notes with links: New and smaller auto dealers face mounting difficulties in securing essential floorplan loans, a crucial step in dealership ownership. Amid rising interest rates and cautious lending practices, lenders are increasingly reluctant to finance smaller deals, affecting many hopeful first-time dealers. Banks and lenders now often require floor plans to exceed $10 million, and many first-time buyers are confronted with last-minute cash demands, sometimes needing an additional $250,000 to $1 million as collateral. Josh Letsis, aiming to buy a Chevrolet store, was denied floorplan loans by multiple banks and GM Financial, which required more cash on hand despite his strong credit. The deal’s collapse cost him $60,000 in fees. Chad Chase faced a similar setback when Stellantis unexpectedly pulled out of financing, forcing him to scramble to keep his Chrysler-Ford store purchase alive. In the great button-versus-touchscreen debate , Rivian’s Chief Software Officer Wassym Bensaid doubled down on voice controls as the future, saying in-car buttons are “an anomaly.” At TechCrunch Disrupt 2024, he noted that physical controls are “a bug, not a feature,” advocating that voice interactions should replace touch and physical controls. Rivian aims to make every vehicle function accessible by voice, with AI advancements potentially solving current issues in voice assistant technology. Many users remain skeptical, citing frustration with today’s voice controls and concern about losing quick access to functions like AC adjustments and seat controls. On top of this, Bensaid called Apple CarPlay (which isn’t available in Rivians) a “lazy” option that oversimplifies the UI, which Rivian plans to build out with proprietary, integrated software features. With endless options and extensive product information, today’s online shopping experience can feel less like convenience and more like an exhausting chore . Research suggests that too much choice is paralyzing, creating a phenomenon some call “choice overload.” A recent Accenture survey revealed 74
Sat, November 02, 2024
Trick or Treat Around The Auto Industry
Shoot us a Text. On Saturday's we like to talk about the ways we see dealers impacting their communities, and today, Kyle and Chris are talking about everything Halloween, from haunted car washes to PS5 giveaways to scary replicas of Paul and Kyle. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, November 01, 2024
October Sales Growth, Ford’s Manager Accountability, Early Black Friday
Shoot us a Text. It’s a new month and we hope you’re recovering from the candy hangover! Today we’re looking back at October in retail auto and reviewing how it did, examining how Ford is linking performance to manager bonuses and seeing how Target is moving Black Friday deals earlier than ever. Show Notes with links: October brought robust growth in U.S. auto sales , led by higher consumer interest in EVs and hybrids, as automakers capitalized on rising inventory and incentives. Hyundai and Kia set October sales records, up 16% and 18% respectively, with notable gains in electric and hybrid models, a trend seen industry-wide. U.S. light-vehicle sales are expected to climb up to 11% from last October, with retail demand offsetting declines in fleet sales, say industry analysts. The industry’s annualized sales rate is projected to hover between 15.8 and 16.1 million, sustaining the strong September pace. New-vehicle inventories are up 25%, though still below pre-pandemic levels, creating a mix of high turnover for brands like Toyota and large stockpiles at others. Rising inventories are pushing incentives higher, averaging $3,149 per vehicle—a 71% increase over last year—with EVs seeing the largest discounts. Ford CEO Jim Farley is driving a new culture of accountability by linking manager bonuses to key goals in quality and cost-cutting—and reducing bonuses to 65% of the total potential this year. Ford’s recent earnings met only the low end of expectations, causing shares to drop over 10% earlier this week. In a recent town hall, he stressed the urgency of the new performance-based bonus system to push for faster improvements in quality, saying current progress isn’t enough. “We now truly differentiate and reward excellence at Ford,” Farley said, describing the shift as a “massive culture change.” This move aligns Ford with broader trends, as GM also updated its bonus structure this year, now offering top performers 150% of their potential bonus. Target is launching its Black Friday deals earlier than ever , offering shoppers a jumpstart on savings with multiple ways to snag the best prices this season. The three-day Early Black Friday Sale runs from Nov. 7-9, giving shoppers early access to top discounts. Target’s Holiday Price Match Guarantee ensures shoppers get the best deal, with price matching on items that drop in price through Dec. 24. Daily
Thu, October 31, 2024
Carvana Efficient Growth, Ford Pausing Lightning Production, Starbucks One Price
Shoot us a Text. Happy Halloween! It’s the last day of the month, and we’re tracking how Carvana has managed to continue its used car growth. Plus, we cover how Ford is slowing down its production of the F-150 Lightning and Starbucks getting rid of extra fees for non-dairy milk. Show Notes with links: Shout out to our friends at UVeye! Their AI-driven automated vehicle inspection has earned a spot on TIME’s prestigious 2024 Best Inventions list , showcasing innovations that transform daily life. TIME recognized its impact on safety, reliability, and transparency in inspections. Carvana posted a strong Q3 net income , impressing Wall Street despite an 80% decline from last year’s figures. Net income hit $148 million, up 208% from Q2 but down from Q3 2023's $741 million. Vehicle sales rose to 108,651, up 34% year-over-year and 7.1% over Q2. Operating income reached a record $337 million, a 602% year-over-year increase. Gross profit per vehicle climbed 25%, supported by reduced costs and faster sales. CEO Ernie Garcia praised the "efficient growth" from Carvana's ADESA network expansion, enhancing cost efficiency and customer experience. Brian Kramer called it a “MONSTER finish” for Q3, crediting the company’s disciplined acquisition and inventory management strategies. He attributed the rise in sales and gross profit to more accurate appraisal estimates, quicker sales, and higher margins on consumer-sourced inventory. Ford is pausing F-150 Lightning production for seven weeks, from mid-November to early January, responding to slower-than-expected demand for the electric pickup. Production will stop on Nov. 15, resuming on Jan. 6 after a holiday break, as Ford adjusts to find a better mix for sales growth and profitability. Despite an 86% year-to-date sales increase through September, the Lightning lost its title as the nation’s best-selling electric truck to Tesla’s Cybertruck. Ford’s supply of electric models remains high: a 100-day supply of F-150s, 130 days of the Mustang Mach-E, and 128 days of E-Transit vans as of September, per Cox Automotive. CEO Jim Farley remains optimistic about Ford's long-term EV strategy but acknowledges “the slow uptake of EVs,” emphasizing the company’s pivot to more affordable EV platforms in the coming years: “I wouldn’t trade [our strategy] for any of our competitors.” Starbucks is giving <a href='https://www.nbcnews.com/busin
Wed, October 30, 2024
Ford Drops, Tesla Grows, Airline Refunds
Shoot us a Text. Ford Drops, Tesla Grows, Airline Refunds Description: We are on day 2 of More Than Cars season two shooting, and we couldn’t be more encouraged by what we are discovering in Lafayette, IN. Today we look at Ford’s Q3 report of lower net income, Tesla expanding its vehicle output in 2025 and a new requirement for you to get quicker airline refunds. Announcement REPLAY available: ASOTU Edge Webinar with Amol Washampayan of fullthrottle.ai - Find Your Shoppers Using Free TV More Than Cars Episode 4 Releases on November 13th Rohrman MTC shoot Oct 28-30 - ATAE Comms Nov 6-7 -MRC Nov 16-17 - CMA MTC Shoot Nov 18-20 Show Notes with links: Ford is adjusting their full year targets after posting a large drop in net income in Q3 due to expected EV delays. Ford reports a 26% drop in Q3 net income due to EV delays and associated costs. Revenue rose 5% to $46 billion, marking the 10th consecutive growth quarter. Ford now projects full-year EBIT around $10 billion, down from a $12 billion estimate. Cost-cutting efforts of $2 billion this year are offset by inflation and warranty costs. “Cost is holding us back…[but] we’re focused on improving costs every quarter,” CFO John Lawler commented. Tesla has set an ambitious target to deliver an additional 500,000 electric vehicles next year, leveraging factory enhancements and new production methodologies to expand its footprint in the global EV market. Tesla will ramp up production at its Giga Texas and Giga Berlin plants and adopt new streamlined manufacturing techniques to produce popular models like the Model Y and Model 3 faster and at lower costs. Advancements in Tesla’s battery technology, including structural battery packs and the 4680 battery cells, are central to achieving these targets, allowing for both extended vehicle range and reduced production costs Key factory upgrades are already underway, aimed at increasing both output and energy efficiency, aligning with Tesla's vision to scale sustainable manufacturing. CEO Elon Musk noted the significance of the target, saying, “This is not just about meeting demand; it’s about setting the pace for the global shift toward electrification. We aim to make EVs accessible on a mass scale.” New requirements for <a href='https://www.nytimes.
Tue, October 29, 2024
Rates Down/Payments Up, Scout DTC “Exactly What Customers Want”?, Apple’s AI Ads
Shoot us a Text. We’re live from Lafayette Indiana to start recording the second season of More Than Cars! Today, we’re running through the latest industry data from J.D. Power, pushing back against an article from the Verge that suggests Scout is doing “exactly what customers want”, and how Apple is innovating with its advertisements. Show Notes with links: J.D. Power’s preliminary October data reveals that while auto loan interest rates have dipped, monthly payments on new vehicles continue to climb, driven by reduced trade-in values. The average interest rate for new-vehicle loans fell to 6.7%, down from 7.4% a year earlier, with monthly payments reaching $738 on average, a 14% increase from October 2023. The average new-vehicle transaction price dropped 1.6% to $44,904, with used vehicles averaging $28,472. Trade-in equity plummeted 10% to $7,909. Cars are spending an average of 50 days on lots, more than double last October’s 20 days. Leasing rose to 23% of sales, driven by increased incentive spending, now 6.3% of sticker prices. Thomas King of J.D. Power explained, “This holiday season may require innovative strategies to entice customers into acquiring a new vehicle..” Scout Motors, backed by VW, is embracing a direct-to-consumer model , sidestepping traditional dealers and aiming for a seamless, digital-first sales process. Dealers, however, are already pushing back with legal threats. Scout plans direct sales for its Terra and Traveler EVs, similar to Tesla’s approach. CEO Scott Keogh promises a “transparent, super fast, and super easy” buying experience. Relying on an in-house digital platform, Scout bypasses the traditional dealership model. Scout aims to open 25 "Workshops" for service and test drives, plus Scout Studios for sales. “Only through a direct sales model can Scout Motors get a full 360-degree view of the customer,” says VP Cody Thacker. Key: it is clear consumers are getting information about dealers and their lawsuits from external sources and the rhetoric is against dealers. This week, Apple launched two new ads promoting its Apple Intelligence tools. While these quirky ads showcase AI’s ability to fix human oversights, some critics argue they highlight a disturbing trend in tech marketing. Ads depict relatable mishaps, like forgetting birthdays, solved effortlessly by AI tools. Directed by ad comedy ex
Mon, October 28, 2024
Rocky Q3 For Publics, EV Test Drive Interest, Seeing the Same Ad Over and Over
Shoot us a Text. It’s the last week of the month, so go finish strong! Today, we’re covering how the public dealership groups made out in Q3, plus a survey that says a majority of Americans are interested in test driving an EV and another survey that says we see the same add too many times. Lithia & Driveway, AutoNation, and Sonic Automotive report contrasting Q3 financial results, marked by cyberattack impacts, record revenues, and operational successes in both new and used vehicle segments. With a record Q3 revenue of $9.2 billion (up 11% YOY), Lithia saw used car sales jump 18.4%, as its network of 300+ dealerships continued acquisitions. Profit per unit fell significantly, with gross margins declining from 7.2% to 6.6% in used cars, as rising operational costs impacted both new and used vehicle profit margins. AutoNation Q3 revenue declined 4% to $6.6 billion, with a 9% drop in gross profit attributed to the ongoing effects of the June CDK cyberattack that disrupted operations. CEO Mike Manley praised the team’s resilience, citing strong performance in new car and after-sale services as key drivers to offset declines in other areas. EchoPark, Sonic Automotive's used-car division , set a new Q3 record with $55.2 million in gross profit, alongside a 131% YOY increase in net income, thanks to efficient cost-cutting and targeted downsizing of underperforming stores. Despite a 7% drop in unit sales, cost savings drove up per-unit gross profit to $3,111, showcasing resilience in a challenging market. A recent Consumer Reports survey shows that many Americans are still interested in exploring electric vehicles , with 50% of Americans saying they’d consider test-driving an EV during their next dealership visit Only 37% are not interested in a test drive, with concerns including the availability of charging stations, battery durability, and high upfront costs. 20% of consumers seeking hybrids or EVs reported dissatisfaction with dealership information, while another 46% felt only "somewhat satisfied." "Consumer interest in cleaner vehicle types continues to be strong, but many consumers still have a lot of questions." said Chris Harto, senior policy analyst at Consumer Reports AD-ID’s latest survey highlights ad fatig
Sat, October 26, 2024
Turning Challenge Into Hope, and Seeing The Industry Rally Around You
Shoot us a Text. Today on the Saturday pod, Kyle is joined by Chris and Nathan. Chris shares the story of Mike McSherry and his marathon for his son and the March of Dimes. So far, he's raised over $30K for the amazing organization on the support of the automotive industry! There's still opportunity to donate and make an impact. It's a reminder that as we band together, no crisis can win! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, October 25, 2024
Scout Goes Direct & Dealers Pushback, EV Roundup, Monochromatic Car Trends
Shoot us a Text. Feathers have been rustled this Friday morning as Scout announced their long-awaited vehicles, and how they aren’t going to use dealers to sell them. Plus, we talk about Farley’s Chinese EV revelation, how Tesla is finding new profit centers and why every car only comes in a shade of black or white. Show Notes with links: After over two years of tight-lipped planning, Scout Motors has unveiled its direct-to-consumer approach for the Terra pickup and Traveler SUV, bypassing the traditional dealership network, and sparking strong reactions from U.S. auto dealers. The Terra pickup and Traveler SUV, unveiled as production-ready concepts, are aimed at ruggedness, repairability, and will feature an optional extended-range EV system. Sales will skip U.S. VW dealers, instead using a direct model with $100 refundable reservations available. Dealers expressed frustration, raising potential legal challenges over lack of communication. John Devlin of the Pennsylvania Automotive Association warns of “challenges” facing Scout in nearly every state, saying "Scout can’t expect dealers to sit by quietly. This approach will face serious pushback. My counterparts around the country are not just going to roll over," Ford CEO Jim Farley recently shared insights from driving a Xiaomi SU7 sedan around Chicago, highlighting how far American automakers lag behind China’s highly integrated tech-automotive ecosystem, which is increasingly driven by consumer tech giants like Xiaomi and Huawei. Farley praised the Xiaomi SU7, calling it "fantastic" and noting Xiaomi’s ability to sell tens of thousands of units per month, with long waitlists. In China, brands like Xiaomi and Huawei seamlessly integrate their operating systems across vehicles and consumer electronics, offering an experience unmatched by Western brands. Despite Elon Musk’s past assurances that Tesla’s service and Supercharger network would not be profit centers, the company’s latest earnings reveal a notable surge in profits from these very areas, highlighting a strategic shift. Q3 2024 results show Tesla’s “services and others” profits grew to nearly $250 million, up 90% year-over-year and a significant chunk of an $800M annual gross profit increase. Once a spectrum of vivid hues, the color choices for America’s cars have dwindled over the past two decades, influenced by econo
Thu, October 24, 2024
Dealer Profits Stable, Fleet EV Transition, and Apple’s Beta
Shoot us a Text. Happy Thursday! Today Paul’s back and we cover stabilizing dealer profits, GM & Ford helping Fleet customers transition to the EV lifecycle, and Apple’s newest beta features available now. Show Notes with links: New data from the Presidio-NCM benchmark shows the sharp drop in dealership profits may be stabilizing after a tough year. Average dealership pretax profits dropped 30.4% in 2024, but this is an improvement from earlier declines. Used-vehicle margins showed improvement, while new-vehicle margins continued to shrink. Fixed-operations performance helped offset declining overall profitability. George Karolis of Presidio Group notes, "The improvement... is the strongest indicator yet that retail automotive’s profit tumble could end up stabilizing." GM and Ford are rolling out new tools to help fleet operators make a smooth transition to electric vehicles, addressing concerns about cost, charging, and business impact. GM’s “EV Starter Kit” helps identify EV-suitable drivers and routes, offering home charging solutions. Ford’s “E-Switch Assist” analyzes vehicle usage to suggest which can be replaced by EVs. Ford’s tool has analyzed over 38,000 vehicles, finding 53% suitable for EV replacement. GM provides telematics and OnStar analytics to support businesses with cost comparisons. “Our solutions are aimed at making this transition easier and potentially reducing the total cost of ownership,” said Nate McDonald, Ford Pro’s EV brand manager. Apple's iOS 18.2 developer beta introduces advanced AI tools and enhanced integration with ChatGPT, expanding the capabilities of Apple’s ecosystem. Developers can now access tools like Genmoji and Image Playground for image and emoji generation. Visual Intelligence allows users to search using their camera on iPhone 16 models. AI-powered writing features and expanded regional support are part of this release. ChatGPT integration is set to enhance user interactions on Apple devices. Apple Intelligence will continue rolling out in stages, with Siri’s screen-aware actions yet to arrive. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: <a href='https://www.linkedin.com/co
Wed, October 23, 2024
GM Beats Wall Street, 19 Million Tons of Lithium, Air Taxis Cleared For Takeoff
Shoot us a Text. As we reach the middle of the work week, we’ve got the one and only Jordan Cox in the studio! Today, we’re talking about how GM has raised their 2024 guidance again, how Arkansas could be home to enough lithium to power all the world’s EVs and how the FAA has issued its rules for air taxis. Show Notes with links: General Motors (GM) beat Wall Street's Q3 estimates, with shares surging 8%. Continued strong demand for trucks and SUVs drove the growth, while GM's revised 2024 profit outlook indicates industry resilience despite ongoing economic pressures. Adjusted earnings per share were at $2.96, surpassing the expected $2.43. Revenue hit $48.8 billion, outpacing forecasts of $44.6 billion and GM's stock jumped to a two-and-a-half-year high of $53.25. Strong SUV sales and cost cuts are expected to maintain dealer margins. EV sales are growing, but represent only 4% of U.S. deliveries. "The consumer has held up remarkably well for us," said CFO Paul Jacobson. Researchers have found that southern Arkansas’s Smackover Formation may hold up to 19 million tons of lithium , enough to meet global demand for car batteries nine times over by 2030. This discovery could have a significant impact on the EV market. The lithium is estimated to make up 36% to 136% of current U.S. reserves. ExxonMobil aims to start lithium production by 2027, supplying enough for over 1 million EVs annually by 2030. They are using dew direct lithium extraction technology that could be more environmentally friendly but remains largely unproven. Corporations are currently in a legal battle with landowners over mineral rights. Katherine Knierim, a hydrologist and the study’s principal researcher estimates “there is enough dissolved lithium present in that region to replace US imports of lithium and more.” The FAA has released long-awaited final regulations for electric vertical takeoff and landing (eVTOL) aircraft, marking a major step toward the future of air travel, including air taxis and cargo delivery. eVTOL aircraft are the first new aircraft category since helicopters in 1940 and the new regulations cover pilot training, safe altitudes, and visibility standards. Pilot training will include single-flight control for powered-lift aircraft, simplifying instruction. Industry players like Joby Aviation an
Tue, October 22, 2024
AI Hit-Or-Miss For Dealers, Mach-E That Looks Like A Mustang, The Chick-Fil-A Network
Shoot us a Text. It’s a terrific Tuesday morning, and we have guest host Amit Chandarana, newly announced CEO of Curbee! We’ll be discussing how auto dealers are integrating AI into their operations (or how they aren’t), the refreshed Mustang Mach-E and Chick-Fil-A’s new streaming network. Show Notes with links: Auto dealerships are embracing AI with hopes of transforming operations , but the technology’s initial impact has been hit-or-miss. While there are real gains, the promises of instant transformation haven’t fully delivered. AI has successfully streamlined back-office tasks and improved online customer interactions. Generative AI tools like ChatGPT help with service scheduling and customer emails, but chatbots have struggled. In 2023, pranksters hijacked dealership chatbots with absurd requests, forcing some to shut them down. Dealers remain hopeful, but many are cautious about AI’s potential with some like Jason Bickford of Bickford Ford seeing AI as a valuable tool that will improve over time. "It's a really strong tool of support and helps you to do your job faster and better, and be more thoughtful with it." Steve Greenfield of Automotive Ventures said, "We've only just scratched the surface, and the fear is we may have dealers ... that are already getting disillusioned with the overpromise and under delivery of what AI can do for them. They may already be getting numb around entertaining any vendor that is trying to sell them AI-enabled features." Ford is refreshing its popular Mustang Mach-E for 2025 by actually making it look like a Mustang. It features key upgrades in both tech and design, all while slashing the price to stay competitive in the EV market. The new starting price is $36,495, undercutting Tesla's Model Y by nearly $8,000. The 2025 Mach-E adds a standard heat pump, improving winter performance and charging efficiency. Exterior upgrades include a Sport Appearance Package with design cues from the GT model and Brembo brake calipers, while inside has sportier accents like red stitching, sport pedals, and ventilated front seats. Ford's updated BlueCruise 1.5 now features automatic lane change, available via subscription. Chick-fil-A is officially branching out into the entertainment space with a new app launching November 18, aimed at keeping families engaged with original content, games, and more. The app will offer podcasts, games, recipes, and animated shows t
Mon, October 21, 2024
What Your Car Says About You, Negative Equity Spike, Sam’s Club No-Checkout
Shoot us a Text. Description: As we roll into a new week, we’ve got some fun insights from Business Insider about the United State of Automobiles. Plus, we talk about how negative equity is growing year over year and an innovative Sam’s Club concept that eliminates any type of checkout lane. Announcement ASOTU Edge Webinar on October 23 at 2Pm with Amol Washampayan of fullthrottle.ai - Find Your Shoppers Using Free TV More Than Cars Episode 4 Releases on November 13th Rohrman MTC shoot Oct 28-30 - ATAE Comms Nov 6-7 -MRC Nov 16-17 - CMA MTC Shoot Nov 18-20 Show Notes with links: America’s love affair with cars is undeniable, shaping not just the roads but the culture, economy, and even identity of its people. Business Insider dives deep into this obsession by analyzing 1.7 million listings on CarGurus to reveal surprising trends. America has the most cars per capita, and it defines much of our culture. Data shows that car choices reflect identity, financial status, and even political leanings. For instance: The top five most Democratic vehicles are the Toyota Prius, Audi A4, Kia EV6, Acura TL, and Jeep Commander. Meanwhile, the top five most Republican vehicles are the Jeep Wrangler, Jeep Gladiator, Chevrolet Silverado 1500, Ford F-150, and Honda Odyssey. The Business Insider series also covers how car color has changed over the years with over 80% of cars now being black, white or gray and what are the most popular makes and models in different regions, A recent analysis by Edmunds reveals a sharp increase in negative equity among U.S. car buyers, with more people finding themselves upside down on their car loans than ever before. In Q3 2024, 24.2% of all vehicle trade-ins had negative equity, up from 18.5% of Q3 2023, with the average owed amount of $6,458 up from $5,808 in Q3 2023. Over 22% of consumers with negative equity are underwater by more than $10,000, with 7.5% owing $15,000 or more. The problem spans all vehicle types, with midsize SUVs (19.5%), compact SUVs (17.3%), and large trucks (10.3%) making up the largest share of trade-ins with negative equity. "It's ea
Sat, October 19, 2024
Supercar Parade for the Kids
Shoot us a Text. Today ASOTU head writer Chris Reeves sits with Paul and Kyle to talk about the Supercar Parade collab the Wylar Automotive Group put on to benefit the Ronald McDonald house. They may or may not also talk about the posters they had in their rooms as kids. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, October 18, 2024
EV Registrations Up 18%, FSD Low-Viz Investigation, Rivian Knight Rider
Shoot us a Text. As we wind down on another week, we’re looking at August’s EV numbers and the gains by GM. Plus, we talk about the NHTSA’s investigation into Full Self Driving, and how Rivian is re-skinning its R1s for spooky season. Show Notes with links: General Motors' latest electric vehicles, combined with Tesla's Cybertruck, significantly contributed to an 18% increase in U.S. EV registrations in August year over year. U.S. EV registrations hit 111,952, accounting for 8.6% of the light-vehicle market, up from 7.5% the previous year. GM’s new Equinox EV and Blazer EV made the top 10 EV models,helping Chevrolet place as the #3 EV brand in August, up from #7 in May. Tesla and Ford were #1 and #2. Tesla remains the leader in EV sales but saw its market share drop to 46% as legacy brands like GM, Honda, and Kia close in. Generous leasing offers and incentives are boosting EV sales, although concerns remain about their impact on profitability. “It's basically impossible for Tesla not to lose market share as new EV models stream into the marketplace,” said Ed Kim, AutoPacific's chief analyst. The National Highway Traffic Safety Administration has opened an investigation into 2.4 million Tesla vehicles equipped with Full Self-Driving software after reported crashes in low-visibility conditions. The probe involves Tesla models from 2016-2024, including Model S, X, 3, Y, and the 2023-2024 Cybertruck. Crashes occurred under conditions like sun glare, fog, or airborne dust, with one fatal crash involving a pedestrian. Tesla has a "camera-only" approach to FSD, compared to rivals who use radar and lidar. The investigation adds pressure as Tesla focuses on self-driving technology, robotaxis, and new concepts like the "Cybercab." Tesla has not commented on the investigation. Rivian is bringing some Halloween fun to its R1 vehicles with a set of “Car Costumes,” allowing owners to transform their EVs into iconic movie rides or spooky-themed designs. Owners can choose from "Knight Rider" KITT, the "Back to the Future" Time Machine, or a "Haunted Rivian" costume. Features include themed lighting, sound effects, and interactive display changes. New Halloween-themed modes also include ghostly reskins for drive modes, zombies on pedestrian sensors, and spooky sounds. Rivian’s fun-filled update goes live on October 18, offering a whimsical
Thu, October 17, 2024
Plug-Ins Not Winning, Cybertruck Reservation List, Credit Card Debt Climbs
Shoot us a Text. We’re together in-person this Thursday morning as we reflect on the 100 years of Carter Myers Automotive. Today we’re talking about how plug-in hybrids may not be the transition to EVs that we thought, how Tesla may have already exhausted its Cybertruck reservation list and how more Americans are concerned about their credit card debt. Show Notes with links Many have pointed to the plug-in hybrid as the ideal transition vehicle from ICE to BEV . But a new study from J.D. Power suggests that plug-in hybrid electric vehicles (PHEVs) may not be the electric vehicle solution consumers are looking for. PHEV satisfaction scored 669 on a 1,000-point scale, lower than BEVs (716) and premium EVs (738). PHEVs account for just 1.9% of U.S. vehicle sales, while BEVs hold 9.4% and conventional hybrids 10.7%. High purchase and maintenance costs are major drawbacks, with compact PHEVs averaging $48,700 compared to BEVs at $36,900. As of August 2024, there are 41 PHEV models in the U.S., compared to 39 hybrid models and 60 BEV models. "Dealers are the frontline educators in the EV space," says Brent Gruber of J.D. Power, encouraging them to bridge knowledge gaps around issues like range, charging, and cost. Tesla's Cybertruck has seen impressive sales, with over 27,000 units sold in the U.S. in 2024. However, the company appears to be running through its massive reservation list faster than anticipated, with new buyers getting their trucks much sooner than expected. Tesla sold 16,000 Cybertrucks in Q3 2024, following 11,000 in the first half of the year. Despite claims of up to 2 million reservations, buyers can now get a Cybertruck within 60 days of ordering. Some early reservation holders report being offered additional trucks much earlier than anticipated. The base model, originally priced at $39,900, is no longer available, with current models starting around $100,000. A new survey from the Federal Reserve Bank of New York reveals that many Americans are growing more concerned about their ability to manage credit card debt . The likelihood of missing a payment in the next three months has climbed to 14.2%, the highest since April 2020. Delinquencies on credit card accounts over 90 days past due reached 9.1%, along with a rise in bankruptcy filings. U.S. household debt now totals $17.8 trillion, with credit card balances hitting $1.14 trillion, up almost 6% year-ov
Wed, October 16, 2024
Affordability Drives Sub-$20K Segment, AI EV Battery Checks, Shrinkflation Survey
Shoot us a Text. It’s a wheels up Wednesday as we’re celebrating with Carter Myers Automotive at their 100th Anniversary Gala. We also dive into the rise of affordable new vehicles, AI’s game-changing role in EV battery safety, and the growing frustration of U.S. shoppers facing shrinkflation. Show Notes with links: New data suggests lower-priced vehicles are surging in popularity despite the average price of new cars remaining high. Buyers are acting fast before affordable models disappear, with notable increases in sub-$20,000 cars. Kia Forte sales rose by 6%, Nissan Versa by 64%, and Mitsubishi Mirage by an incredible 114%, even though the Mirage is set to be discontinued. Vehicles priced between $20,000 and $30,000 saw nearly 44% growth in sales during Q3. Meanwhile, luxury cars priced at $100,000 or more saw a sharp decline, with sales plummeting 46% in the past 9 months. Kevin Roberts from CarGurus says consumers are becoming more cautious due to economic uncertainty, high interest rates, and elevated vehicle prices. Technology firms are racing to tackle EV battery defects with the help of artificial intelligence. AI models are dramatically speeding up quality checks, helping identify potential issues before they lead to costly or dangerous outcomes. UnitX’s AI tools scan cells in 3.5 seconds, compared to 5 minutes for human operators, allowing labor to be reassigned. Richard Ahlfeld of Monolith says AI can halve battery testing time, while Nio Europe is leveraging AI to accelerate battery development. SES AI is using AI models to map new molecules, potentially revolutionizing material discovery for future EV batteries. Patrick Hertzke of McKinsey notes that improving battery chemistry, like pharmaceuticals, takes time but holds tremendous potential for the future. A new LendingTree study reveals just how widespread shrinkflation is in the U.S., with many products shrinking in size while prices stay the same—or even rise—leaving consumers to pay more for less. 31% of the 98 supermarket products studied have shrunk over the last four years. Paper products like toilet paper were the most affected, with 60% shrinking since 2019. Charmin Ultra Strong rolls shrank by 15.4%, while prices per 100 sheets increased by 31.4%. Breakfast cereals and candy have also been impacted, with Reese’s shrinking by 11% and its pr
Tue, October 15, 2024
GM EVs Outsell ICE in China, AI In-Car Experience, Starbucks Back To Basics
Shoot us a Text. On this Tuesday, we dive into GM’s historic EV sales surge in China, explore how AI-powered voice assistants are changing the in-car experience, and look at Starbucks’ new CEO's strategy to cut discounts and bring back the coffeehouse charm. Show Notes with links: General Motors has achieved a significant milestone in China, selling more electric and hybrid vehicles than ICE cars for the first time in Q3 2024. Total deliveries in China grew by 14.3% to more than 426K vehicles, across brands like Buick, Cadillac, Chevrolet, and SAIC-GM-Wuling, with over 224K being new energy vehicles (NEVs). The SAIC-GM-Wuling joint venture led GM’s EV success, contributing 328K vehicles, driven by models like the Wuling Hong Guang MINI EV and BinguoEV. Buick’s GL8 PHEV minivan hit a milestone as China’s first premium multi-purpose vehicle to surpass 2 million units in sales, with 45% of its Q3 sales coming from the plug-in hybrid version. In the U.S., GM only delivered 32,000 EVs in Q3. Steve Hill, GM Senior Vice President, remarked: “We are building momentum for both sales volume and market share in China.” Automakers are struggling to keep control of the in-car experience as Apple and Google push their AI-powered voice assistants deeper into vehicles, shaping how drivers interact with their cars. Apple and Google’s voice assistants are handling tasks like navigation, calendar access, and smart home control, using vast amounts of customer data to deliver highly personalized experiences. Automakers are losing ground because they don’t have access to the same level of consumer data, which tech giants use to make voice interactions smoother and more intuitive. While companies like SoundHound AI offer alternatives, most automakers are outsourcing voice tech, avoiding the challenge of building their own. “Even within the vehicle, you're competing with what's on your mirror link or phone,” said Aakash Arora of Boston Consulting Group. Automakers are "not only competing with other OEMs, you may be competing with your own apps." Under new CEO Brian Niccol, Starbucks is cutting back on its recent discount-heavy strategy, aiming to return to its roots with a focus on premium coffee and customer service. Starbucks had introduced promotions like buy one, get one free and 50% off discounts to boost sales, but the results were underwhelming. The company plans to re
Mon, October 14, 2024
Stellantis Shuffles, Fiat Fun, and Catching a Rocket with Chopsticks
Shoot us a Text. Hello Monday! Today we dive into Stellantis’ leadership shuffle as Jeep’s Antonio Filosa takes on this crucial role, Fiat stirs up fun with a cheeky EV campaign, and SpaceX makes history by catching its massive Starship booster midair. Antonio Filosa, Jeep’s CEO since last November, is now also stepping into the role of Stellantis North America COO . With a sales slump and dealer frustrations, Filosa faces a challenging balancing act as he takes on this dual role. Antonio replaces Carlos Zarlenga, who was COO for just 8 months. Dealers' expectations want better inventory movement and product support and Filosa aims to align product delivery and pricing with market needs. This change comes as Stellantis made broader leadership changes, including a new CFO. "It's no secret that we have work to do," said Filosa on LinkedIn. Fiat has launched a playful social media campaign contrasting its small 500e EV with the massive Tesla Cybertruck. The campaign humorously highlights the size difference while promoting Fiat’s electric city car as a charming and practical alternative. Video titled "You Say Tomato, We Say Pomodoro" compares the two vehicles as Cybertruck is portrayed as "shock" while the 500e is "awwwww." Fiat emphasizes the 500e’s ease of use in city driving. Campaign aims to inject humor while promoting Fiat's first electric vehicle for U.S. consumers. “Our little cinquecento...embodies what an electric city car should be,” said Stellantis CMO Olivier Francois. SpaceX successfully launched and caught its massive Starship booster, marking a historic achievement in spaceflight. The bold maneuver showcases SpaceX's innovation as it works toward its goal of fully reusable rockets for moon and Mars missions. Starship launched from South Texas on Oct. 13 where the booster, "Super Heavy," was caught midair by the launch tower’s "chopstick" arms. SpaceX continues to make Starship fully reusable for rapid relaunch capability. This mission also featured improvements to Starship’s heat shield. "A big step toward making life multiplanetary," said Elon Musk after the flight. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Rea
Sat, October 12, 2024
This Dealer's Dream to Make World a Better Place
Shoot us a Text. Kyle, Paul, and Chris Reeves join us in the studio today! On top of the news this week featuring the Top 150 Dealerships to Work For, Chris touches on Scott Bieler's take on why these top dealers continue to make the world a better place. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, October 11, 2024
Best Dealership, Tesla's Cybercab, and the Silver Economy
Shoot us a Text. It’s Friday! Audi Tysons Corner tops the 2024 Best Dealerships list with a focus on leadership, Tesla unveils the futuristic Cybercab for high-volume autonomy, and retailers shift focus to the booming silver economy. Audi Tysons Corner has secured the top spot in the 2024 Automotive News Best Dealerships To Work For list, with notable achievements in minority leadership and large dealership categories. The Best Dealerships To Work For program celebrates U.S. stores that create positive work environments for employees. Audi Tysons Corner ranked No. 5 overall in 2023 but climbed to No. 1 in 2024. This Penske Group luxury store near DC ranked top large dealership and secured the No. 1 spot in minority leadership with GM Sam Alimi "This recognition is a testament to our commitment to our team's well-being," said Alimi. Tesla CEO Elon Musk introduced the futuristic “Cybercab,” an autonomous taxi aimed for 2026, during an event on October 10 in Hollywood, showcasing Tesla’s vision for high-volume, self-driving vehicles. The Cybercab, priced below $30,000, features butterfly doors and lacks traditional human controls with a Tesla ride-share service but is also available to private consumers. Production is planned at Tesla’s Austin, Texas plant, with an anticipated high-volume output. Musk envisions a future where the Cybercab handles rideshare duties autonomously for Uber or Lyft. "The future should look like the future," Musk remarked on the bold design of the Cybercab. As Generation Z reshapes consumer habits, another key demographic— the over-50 population—emerges with significant financial power and brand loyalty. The "silver economy" targets individuals aged 50+, offering tailored products in sectors like health, automotive, and tourism. This group boasts high purchasing power, focusing on experiences and active lifestyles. By 2030, the population aged 60+ will surpass 1.4 billion globally, creating vast market potential. Technological innovations such as smart homes and eHealth are key to appealing to this group. With a combined net worth of $70 trillion, Baby Boomers represent the fastest-growing consumer group. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: <a href='
Thu, October 10, 2024
GM’s Model Margins, Toyota’s Caution, and Grit from Fast Food
Shoot us a Text. On this Thursday, we explore GM's increased profitability from simplifying gasoline models, Toyota's cautionary stance on an all-EV future with its job risks, and how fast-food jobs have shaped the careers of today's successful professionals. Amid the focus on EVs, GM has found profitability by simplifying its gasoline models, improving margins even on entry-level vehicles. Chevrolet Trax and Buick Envista now yield mid- to high-single-digit margins with the 2024 Trax saw a 20% increase in profitability over the previous model. Fewer configurations and cost reductions drive these gains. GM projects a 4% earnings boost for the Chevy Equinox and GMC Terrain. "We're now profitable in the entry-level segments," said GM President Mark Reuss. Toyota Chairman Akio Toyoda cautions against a full transition to electric vehicles, stating it could lead to job losses for those working on engine-related technologies. 5.5 million people work in Japan's automotive industry. Chairman Akio Toyoda highlights risks for long-time engine-related workers. Toyota champions a "multi-pathway" to zero emissions, including hybrids and hydrogen. The Toyota Chairman shares that EVs may only account for 30% of the global market. "If EVs become the only choice... those people's jobs would be lost," Akio Toyoda emphasized. Many successful professionals credit their early fast-food jobs for shaping their work ethic and customer service skills, leaving a lasting impact on their careers. Many professionals feel their early jobs left a mark, shaping their leadership skills. The hustle and humility from these roles often translate to long-term career success. Michael Erickson, Director at a PR firm in Georgia, recalls his time at McDonald’s as formative to his success. Erickson shares that hard work and customer-service skills left an important mark on his professional journey. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media
Wed, October 09, 2024
Is Tesla’s Robotaxi a Dud?, Milton Causes Early Closures, The Christmas “Spirit”
Shoot us a Text. We’re rolling through the middle of the week, and holding our breath as we wait to see how hard Milton will hit Florida. Plus, we debate whether Tesla can deliver on its robotaxi promise and talk about Spirit Halloween turning into Spirit Christmas. Show Notes with links: Several wholesale auto auctions and dealerships in Florida closed on October 8 and 9 due to the impending arrival of Hurricane Milton. It is hovering between Category 4 and 5 and is expected to make landfall overnight tonight. CarMax closed five stores in Tampa, Fort Myers, Naples, Bradenton, and Clearwater. Penske Automotive Group took similar precautions, securing properties and allowing staff to safeguard their families. Major auto auctions, including ADESA and Manheim, canceled sales and closed locations. “We are working with our team members so they can secure their properties and take care of family,” said Tony Pordon of Penske. As Tesla gears up for its ‘We, Robot’ event, expectations remain low for the unveiling of a new dedicated robotaxi. While the company promises a bold, self-driving future, many are uncertain about its near-term potential. Tesla plans to reveal an autonomous vehicle with no steering wheel or pedals, designed specifically for self-driving. Despite years of development, Tesla’s Full Self-Driving (FSD) program still faces significant limitations, averaging just 120 miles between disengagements. Analysts point out that competitors like Waymo and Cruise already operate functional robotaxi services in the U.S., while Tesla lags behind. Ronald Jewsikow of Guggenheim Securities doubts Tesla will present a viable commercialization path within the next 12 to 24 months. Adam Jonas of Morgan Stanley believes Tesla will take a "dual approach," offering both fully autonomous and supervised rideshare services by 2025-2026. Spirit Halloween, known for its popular pop-up stores, is testing a new concept— Spirit Christmas —by opening 10 holiday-themed stores across the northeastern U.S. The new stores will focus on festive decor and live Santa Claus experiences, offering free digital photos for visitors. Spirit Christmas revives an idea tested in the 1990s and mid-2000s but discontinued after mixed results. Locations include cities in Connecticut, New Jersey, New York, and Pennsylvania, many previously home to Spirit Hallowe
Tue, October 08, 2024
Hurricane Tips For Dealers and EV Owners, Unexpected Kia Kindness, Uninsurable Cybertrucks
Shoot us a Text. Welcome to Tuesday, the most productive day of the week! Today we’re talking about the anticipation that Florida is facing with Hurricane Milton and how dealers and EV owners can be prepared. Plus, we see some unexpected kindness between Kia dealers and learn how Cybertruck owners are having their insurance policies canceled. As Hurricane Milton looms, Florida dealerships across Tampa Bay and the Gulf Coast prepare for impact . The storm, expected to hit Category 3 by landfall, still poses significant threats. Dealers like the Morgan Auto Group and Potamkin Automotive are closing stores early and initiating staff safety protocols and storm preparation. CEO Teddy Morse of Ed Morse Automotive Group is preparing for significant damage from Hurricane Milton, expecting it to be severe, saying “This isn't a scenario where you say, ‘Wow, I hope everything's OK.’ It's not going to be OK.” Morse emphasized ensuring every eligible vehicle is floorplanned, because “if they’re not on the floorplan, they’re not insured.” Meanwhile, after Hurricane Helene destroyed 672 of Ken Ganley's Kia inventory, Raul Gomila, GM of City Kia in Orlando stepped up, selling 100 new and 25 pre-owned vehicles to assist. Gomila, who survived Hurricane Andrew in 1992, understands the devastation and felt compelled to help, despite not knowing Ganley personally. "That kind of kindness just doesn't happen," Ganley said. "It just doesn't exist. I mean, I'm blown away.” "It's the right thing to do when a store is in need," Gomila said. "Sometimes even a little help goes a long way." For EV owners, hurricanes pose a unique set of uncertainties to navigate. Whether they stay or evacuate, here’s some tips to protect vehicles and keep options open. Avoid parking EVs in areas prone to flooding or standing water, as saltwater can damage batteries. Relocate EVs to higher ground and shelter, with many counties offering free public garage access. Cybertruck owners have faced multiple challenges in 2024, including cleaning their new trucks, rusting issues, and five recalls. Now, insurance complications are adding to their woes as some drivers report policy cancellations. Geico confirmed some Cybertruck owners received non-renewal notices due to the vehicle not meeting underwriting guidelines. Geico cite
Tue, October 08, 2024
Helene’s Insurance Effects, Joint-OEM EV Chargers, October Holiday Shopping
Shoot us a Text. Monday morning and we’re rolling heavy into this week as we explore how Hurricane Helene impacts auto dealerships' insurance, the launch of IONNA’s EV fast-charging network, and why October is now a major sales season for retailers like Amazon and Walmart. Show Notes with links: As natural disasters like Hurricane Helene become more frequent and severe, and with Hurricane Milton facing down Florida’s gulf coast, i nsurance companies are reassessing their risk models. Auto dealerships, in particular, face unique challenges in protecting high-value inventory and managing insurance costs in the aftermath of such storms. Andrew Hoffman, a professor at the University of Michigan, says these decisions will likely reflect trends, not just isolated incidents like Helene. He noted that auto dealerships may need to implement additional storm-proofing measures to secure insurance coverage. Meanwhile, some auto dealers are banding together to help those affected. The Jim Ellis Automotive Group in Georgia launched a relief campaign, collecting essential supplies like toiletries, canned goods, and baby formula for Helene-impacted residents in North Carolina. The group, in partnership with a vendor, filled a 36-foot trailer with supplies for affected areas and plans to make additional supply runs as recovery efforts continue. IONNA is taking EV charging to the next level with the opening of its first "Rechargery" in Apex, NC, offering ultra-fast chargers and customer-friendly amenities. IONNA is backed by eight major automakers, including BMW, General Motors (GM), Honda, Hyundai, Mercedes-Benz, Kia, Stellantis, and Toyota and its first Rechargery will feature 10 fast chargers capable of up to 400kW, serving both CCS and NACS users. The Apex site, once an old gas station, symbolizes the transition from fossil fuel to electric energy infrastructure. Amenities include a lounge with WiFi, food, coffee, and outdoor, pet-friendly spaces for drivers to relax while charging. IONNA plans to build 30,000 fast EV chargers across the U.S. by 2030. Amazon’s October Prime Big Deal Days introduces unexpected holiday sales items , such as chainsaws, as the company seeks to expand holiday shopping earlier. Other retailers, like Walmart and Lowe’s, are joini
Sat, October 05, 2024
When I Grow Up... I Wanna Be A Technician
Shoot us a Text. Chris Reeves joins the show on this Saturday, and we talk about apple picking, plus what we wanted to be when we grow up and how Walser Automotive Group is investing in the future of technicians. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, October 04, 2024
Strike Over (For Now?), Helene Pressures Used Market, Rivians and Ray-Ban’s, Oh My
Shoot us a Text. As we near the end of the week, there’s been some resolution to the port strike, but it looks like Helene will have lingering effects on the used car market. Meanwhile, Rivians are reportedly still functioning fine after floods and Ray-Bans are being used to scrape your personal information. Show Notes with links: A crippling three-day strike by U.S. dock workers has ended with a tentative agreement , reopening ports on the East and Gulf Coasts. However, unresolved issues could spark future disruptions. Union and port operators agreed to extend their contract until January 2025, with more negotiations expected. Dock workers secured a tentative 62% wage hike over six years, raising wages from $39 to $63 an hour. The strike halted 45 container ships and affected 36 ports, threatening shortages of goods like bananas and auto parts. While the deal ends the immediate work stoppage, automation concerns that could lead to job losses remain unresolved. Hurricane Helene has left widespread destruction across the Southeast, and the storm’s aftermath is likely to push both new and used car prices up as consumers scramble to replace damaged vehicles. Used car demand is expected to rise sharply, particularly for low-cost options under $10,000, which are already hard to find. "This will jack up used car prices when everybody is already paying overprice," warns Cox Automotive’s Skyler Chadwick. Dealers are facing a shrinking inventory, forcing them to "get creative" with sourcing strategies to meet the surging demand. Fixed operations departments are expected to see increased business, as many water-damaged vehicles will require repairs. "It is a revenue source when stuff like this happens," notes Don Monda of Proctor Dealerships. A Rivian R1T submerged in Hurricane Helene’s catastrophic flood waters still functions , showcasing the robust engineering behind electric vehicles. The Rivian was found 100 yards from where it was parked, fully covered in mud and floodwater. Despite being engulfed by floodwaters, the R1T started up, with no apparent issues after being fast-charged. Rivian credits the truck's water-sealed battery packs and advanced isolation monitoring for its survival. Two Harvard students demonstrated a troubling new way to misuse consumer tech , using Ray-Ban M
Thu, October 03, 2024
Live With A Hurricane Affected NC Dealer, Port Strike Contingencies, Charging Station of the Future
Shoot us a Text. We’re up and at ‘em this Thursday morning as we report on dealer associations stepping up to help hurricane affected employees, plus we talk live with Richard Lupo of Apple Tree Honda and Acura about what it’s like on the ground right now. We’ll also cover how the port strike could have massive ripple effects on the supply chain and get a look inside Rove’s new EV charging station. Automobile dealer associations across the U.S. Southeast have activated emergency relief funds in response to the destruction caused by Hurricane Helene, connecting with members and providing much-needed assistance. The NADA Foundation Emergency Relief Fund is coordinating with local dealer associations to assist affected employees with emergency grants up to $1,500, and NIADA has also activated its relief fund, with thousands of members impacted in Georgia, the Carolinas, and Virginia. This all comes as FEMA is warning that while it can handle immediate disaster relief , it lacks the funds to sustain recovery efforts through the rest of hurricane season. Richard Lupo is the Fixed Ops Director at Apple Tree Honda and Acura in Fletcher, NC, about 15 miles south of Asheville, and joins us live. The East and Gulf Coast port strike is threatening to severely disrupt the auto industry’s supply chain, with delays expected to last well beyond the end of the strike. Each day of the walkout could create a weeklong backlog, impacting the industry for months. "It's a multiplier effect," said Michelle Drew Rodriguez of Roland Berger, explaining how every day of lost shipping translates into significantly longer delays. Even if the strike ends soon, clearing the backlog will be challenging as all industries will be vying for limited port capacity, said Michael Robinet of S&P Global Mobility. VW’s primary import ports are closed, but shipments are being diverted to Freeport, Texas, and Davisville, Rhode Island, where operations continue. If the strike continues into next week, they will consider shifting incoming shipments to the West Coast “Shifting shipments to the West Coast could be an option, but it would require a significant investment, involving rail cars and additional logistics, which comes at a steep cost," said Anu Goel, VW's EVP. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at <a href='https://www.asotu.
Wed, October 02, 2024
Port Strike Parts Impact, 672 Flooded Kias, Q3 Sales Growth Slows, Ford’s Power Promise
Shoot us a Text. We’re looking for the silver lining today as we talk about how US auto sales have slowed considerably through Q3. Plus, we give updates on how the port strike will affect the automotive supply chain, how Helene took out 672 Kias at one dealership, and Ford’s forward-thinking EV home charger program. Show Notes with links: As a major U.S. dockworkers strike at East Coast and Gulf Coast ports enters day 2 with no resolution, European automakers face the brunt of the disruption, threatening to cripple supply chains and disrupt vehicle production. Affected ports handle 34% of U.S. motor vehicle and parts trade, worth $135.7B. Professor Jason Miller posted a list of the most affected goods on LinkedIn and auto parts are #2, accounting for almost 3.3M tons a year. While dealerships are still tallying the effects of Hurricane Helene, Ken Ganley's Florida Kia dealership took a massive hit from Hurricane Helene, with nearly the entire inventory wiped out by floodwaters. 672 vehicles, including 12 customer cars, were totaled due to flooding. Estimated losses range from $28 million to $30 million, with $3.5 million in deductibles. The dealership reopened just two days after the storm, despite severe damage. "Kia was incredible throughout this," Ken said. "They immediately had cars available for us. Believe it or not, we sold two new Kias yesterday." As the third quarter ends, U.S. auto sales growth slowed to an estimated 3.88 million units, just 0.2% YOY, far below expectations, signaling caution in the market. Inflation and higher costs are making consumers cautious, pushing demand toward smaller, budget-friendly vehicles like subcompact SUVs and compact pickups. GM is expected to retain the top spot in sales, though it will see a 3% decline, while Toyota and Ford are close behind. Interest rates for auto loans remain high, with rates nearing 9.61% for new vehicles and nearly 14% for used, keeping buyers on the sidelines. Starting October 1st, Ford is offering free home chargers and installation to electric vehicle buyers through its new " Ford Power Promise" program , aiming to remove barriers for potential EV customers. The Ford Power Promise includes free insta
Tue, October 01, 2024
Hurricane and Strike Updates, EV Market Share Shift, Uber Halloween Costume Delivery
Shoot us a Text. Q4 is here, along with the start of spooky season. Today we’re giving you an update on the port strike and hurricane relief efforts, plus we’re sharing how EVs are shifting from luxury to non-luxury. We’ll cap the show by covering Uber’s new partnership with Spirit Halloween. Show Notes with links: Dealerships across the Southeast are assessing damage after Category 4 Hurricane Helene . Many dealerships remain closed, particularly in hard-hit areas like Asheville and Boone, NC. Dealership employees are reporting significant personal losses, including homes and vehicles. CarMax offers up to $1,500 in tax-free financial aid to employees through its disaster relief fund. As we reported yesterday, port workers across the U.S. East and Gulf Coasts went on strike this morning, threatening significant disruptions to the automotive supply chain. Key terminals like New York and Houston shut down, halting vehicle shipments. In the last 24 hours, the U.S. Maritime Alliance offered a nearly 50% wage increase to the union, but the International Longshoremen's Association rejected it as "unacceptable." Both parties exchanged new proposals, but negotiations remain at an impasse. The strike could cost the U.S. economy $5 billion per day, stalling car and truck imports.. The electric vehicle landscape is shifting, with non-luxury EVs growing their market share to 26.6% in Q2 2024, up from 22.7% in 2023, according to Experian. Luxury EVs still dominate, but more affordable models are gaining traction. Ford leads non-luxury market share at 21.9%, behind them are Hyundai: 19.3%, Volkswagen: 11.2%, Kia: 12.5%, Chevrolet: 13.2%. 77.4% of EV owners who replaced their vehicles in 2024 chose another EV. EVs are often used alongside gas-powered vehicles, with 81% of households that own an EV also having a gasoline vehicle. "EVs have become a compelling choice... but consumers are still relying on their gasoline-powered vehicles," said Experian’s Kirsten Von Busch. Uber Eats is partnering with Spirit Halloween to offer costumes and decor for on-demand delivery just in time for the spooky season. Spirit Halloween's 1,525 stores are now accessible via Uber Eats, Postmates, and the Uber app. Customers can enjoy the same prices as in-store for deliver
Mon, September 30, 2024
Union Strike To Shut Down East Coast Ports, Hertz Unloads More EVs, Thieves Avoid EVs
Shoot us a Text. It’s the last day of the month, and we’re talking about how a union strike could shut down all the ports on the East Coast and how that could affect the auto industry. Plus, we cover Hertz selling off some of its Chevy Silverado EVs, and a new report that says car thieves aren’t interested in EVs Show Notes with links: Port workers from Maine to Texas are preparing for a major strike set to begin early Tuesday , potentially halting container traffic and disrupting industries nationwide. With negotiations at a standstill over wage issues, this strike could cost the U.S. economy up to $5 billion a day. The International Longshoremen’s Association represents 45,000 workers across 36 ports and this would be the first coast-wide strike since 1977, impacting essential goods like food, automobiles and automotive parts. Union leader Harold Daggett, known for his fiery rhetoric, has been vocal about the union's demands, warning, "I’ll cripple you," as he pushes for significant wage increases and resistance to terminal automation projects. Retailers like Walmart and Costco have pre-imported goods to mitigate disruptions. Steve Hughes, CEO of HCS International, which specializes in automotive sourcing and shipping, criticized the union for "holding the entire country over a barrel," Some analysts like Todd Caputo worry that this strike, combined with the effects of Hurricane Helene, will create a perfect storm for the retail auto industry. Did you know that we do a daily digest that rounds up all of the automotive news that you need to know each morning? We put a highlight of that in our Daily Pushback email, but the full write-up covers things you might never see in the email. Here’s a couple from today’s article: Hertz is cutting back on its EV fleet. Just 13 months after announcing a big acquisition of GM’s electric vehicles, the rental giant is now offloading Chevy Silverado EVs due to high depreciation and repair costs. Hertz Car Sales has 35 Silverado EV 3WT models listed at around $63,500—about $11,000 off the fleet pricing. High costs and fluctuating demand are forcing Hertz to recalibrate its fleet, but savvy buyers can snag a solid work truck with impressive specs at a discount. If you're in the market for a robust EV truck, Hertz’s clearance might be your ticket to savings. 💰 Shocking news! Thieves are steering clear of electric vehicles. The National Insuran
Sun, September 29, 2024
1000 School Supplies Per Rooftop... Given Back To The Kids
Shoot us a Text. Today, Paul and Kyle are joined by writer Kristi Canada. After some talks about the weather (a hurricane just blew through where Kristi lives), they talk about how the 9 Car Pros Automotive Group stores collected over 9000 school supplies for kids. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, September 27, 2024
EV Tariffs In Effect, Auto Ads Blitz the NFL, Beast Mode Business Playbook
Shoot us a Text. It’s the last Friday of the month, and today we’re covering new US tariffs on all sorts of Chinese goods, how OEMs are flocking back to television ads on NFL games, and Mr. Beast’s manifesto on how to build a successful company. Show Notes with links: New tariffs go into effect today, as the Biden Administration targets Chinese-built EVs and other imports. The 100% tariff on Chinese EVs escalates trade tensions between the US and China and follows months of negotiation. The tariffs affect 14 categories of Chinese goods, including 50% on solar cells and 25% on key materials like steel, aluminum, and lithium-ion batteries. Tariffs on Chinese semiconductors are expected in 2025 and electronics such as laptops and cell phones are set for 2026. Chinese EVs only account for 2% of US EV imports. China has threatened retaliation, labeling the tariffs as “bullying” and escalating the global trade war. Automakers are ramping up their advertising spend during the NFL season after a few years of reduced activity. Brands like Toyota, Hyundai, and Detroit automakers are betting big on live sports, especially NFL games, to capture consumer attention. Automotive advertising increased by 17% over the last two NFL seasons and is expected to keep growing. Last NFL season, 44% of automotive ad spend on national TV was dedicated to NFL programming, compared to 31% across all sectors, according to Guideline. Toyota has become the “Official Automotive Partner of the NFL,” and GM plans to boost ad spending by $400 million in the second half of the year to promote new vehicle launches. NFL broadcasts garnered 17.9 million viewers on average last season, with the Super Bowl drawing 123.7 million. Toyota’s Dedra DeLilli said, “The most appealing aspect of this partnership is we have access to 218 million highly diverse, highly engaged fans of the NFL.” MrBeast, YouTube’s biggest star, is now making waves as a thought leader in the tech world. A leaked workplace guide by Jimmy Donaldson has caught the attention of Silicon Valley, sparking conversations on leadership, productivity, and intense work expectations. The 36-page guide emphasizes hiring "A-Players" who are obsessive, coachable, and the best in their field. Donaldson expects workers to be laser-focused, demanding radical accountability and a "no excuses" approac
Thu, September 26, 2024
Nissan Wins Ghosn’s Yacht, Walser Invests In Techs, Retail Locked Up
Shoot us a Text. Happy one year anniversary of ASOTU CON 2023! This Thursday, we’re talking about how former Nissan Chairman Carlos Ghosn was ordered to hand his superyacht over to Nissan, Walser Automotive’s partnership with Wichita State University Tech, and the effects of retailers putting products behind locks. Show Notes with links: In a long-standing legal dispute, Nissan secured a court victory against its former chairman, Carlos Ghosn, who was found to have illicitly used company funds to buy a luxury yacht. The British Virgin Islands court ruling requires Ghosn to surrender the 121-foot superyacht "Shachou" and pay millions in damages. The court found Ghosn funneled $32 million from Nissan’s CEO Reserve Fund through intermediaries, including Nissan Middle East, to purchase the yacht. The Custom Line Navetta 37 yacht features five main cabins, four crew cabins, and seven bathrooms. Ghosn, who fled Japan in 2019 to escape criminal charges, now lives in Lebanon under an Interpol red notice and denies all accusations, stating he will appeal the ruling. Nissan lauded the decision as part of its broader legal efforts to recover funds misappropriated by Ghosn. “Nissan will continue such efforts to make Carlos Ghosn accountable for his misconduct,” the company said in a statement. Walser Automotive Group took a major step in addressing the nation’s skilled automotive technician shortage by partnering with WSU Tech to renovate its automotive service facility in Wichita, Kansas. The Walser Automotive Service Lab is part of a $3 million renovation at WSU Tech. The new 30,000-square-foot space includes expanded automotive program capacities and a heavy truck area. Walser referenced a study showing a 3-to-1 demand-to-supply ratio for technicians, with over 600,000 needed by 2024. Many other Walser employees in Wichita also receive continuing education through WSU Tech. "WSU Tech has been a vital partner in supporting our techs’ growth. Strengthening our relationship with WSU was an easy decision." said Randy Lammle, Walser SVP of dealership operations. In response to rising concerns about shoplifting , many retailers have resorted to locking items in display cases. However, a new Consumer World survey suggests this approach may be harming sales as much as it helps prevent theft. Just 32% of shoppers seek out
Wed, September 25, 2024
Dealers Frustrated With Amazon, Rivian Pre-Owned, Kirkland Towers
Shoot us a Text. With only 6 days left in the month, we’re cruising into Wednesday. Today, we’ve got an update on the Hyundai-Amazon partnership and how dealers are feeling about it. Plus, we’re talking about Rivian’s new pre-owned program and a new Costco that is stacking apartments on top of its warehouse. Show Notes with links: Hyundai’s ambitious plans to sell vehicles through Amazon are testing dealer patience , as the initiative is still in its pilot phase after being announced a year ago. During the Automotive News Congress, industry leaders voiced their concerns about the partnership and its broader implications for dealerships. NADA CEO Mike Stanton noted the frustration, calling the platform "just another digital retail tool" rather than a top-tier solution. NADA is collaborating with Hyundai and Amazon lawyers to ensure the partnership complies with state franchise laws, as Amazon's goal for a seamless customer experience is proving more complex than anticipated, especially in financing and trades. Inga Maurer from McKinsey warned of risks, cautioning dealers about the potential loss of customer data, which Amazon could leverage for marketing other products like parts. Eddie Hall III of Hall Automotive acknowledged that Amazon could become an additional sales channel but emphasized that in-person dealership visits remain crucial. Stanton questioned whether customers would make significant purchases like cars on Amazon, saying, "I don't think I am going to go over and buy a car after I buy my toothpaste." Rivian Automotive is diving into the pre-owned vehicle market with its R1T pickup and R1S crossover, aiming to create new revenue streams as new vehicle deliveries slow in the U.S. This move marks a pivotal step as the EV maker matures in a competitive industry. Sales of new R1 vehicles have stalled, with registrations dropping 0.3% in July. Pre-owned EVs are attractive due to significant depreciation on new models, making them a bargain. Rivian posted a net loss of $1.5 billion in Q2 but expects increased demand for used EVs due to price drops across the market. Analyst Ivan Drury of Edmunds praised the program, saying it builds consumer confidence and is "almost mandatory" for brand legitimacy. Costco has officially started construction on its first-ever mixed-use development in South Los Angeles, combining a warehouse with 800 res
Tue, September 24, 2024
No More Cars From China, Stellantis Succession Plan, Gemini In Your Workspace
Shoot us a Text. Welcome to Tuesday! Paul’s hanging out at Vincue Unleashed, Kyle’s at his desk and we’ve got news to talk about, like how the US’s new rule on Chinese software in cars could affect OEMs, how Stellantis is going about its CEO search, and how Google is making Gemini a part of all Workspace accounts. Show Notes with links: The U.S. Commerce Department is considering a new rule that could block automakers like General Motors and Ford from importing vehicles made in China. The move is part of a broader effort to curb the use of Chinese technology, particularly software and hardware, due to national security concerns. GM’s Buick Envision and Ford’s Lincoln Nautilus, both assembled in China, would be directly impacted and the rule could also affect other automakers, including Volvo and BYD. GM sold about 22,000 Envisions, and Ford sold 17,500 Nautilus crossovers in the U.S. during the first half of 2024. Automakers would need to move production outside of China or apply for specific authorizations to continue selling affected models. Liz Cannon from the Commerce Department said, "Any vehicle manufactured in China and sold in the U.S. would fall within the prohibitions." Stellantis announced it has begun the search for a successor to CEO Carlos Tavares , with his contract expiring in January 2026. While Tavares has led the company since 2021 and made it highly profitable, recent issues in North America are driving the company to refocus. The CEO search is routine, but the company faces pressure due to declining North American sales and profits. In response, Stellantis is slashing vehicle inventories by 100,000 units by early 2025 and has already reduced 40,000 vehicles. CFO Natalie Knight said inventory and pricing discipline are key strategies to weather the EV transition, with some models, like the Jeep Grand Cherokee and Compass, seeing price cuts. Tavares has implemented aggressive cost-cutting measures, including job cuts and a plan to source 80% of parts from low-cost countries by 2028. “We are living in very difficult times where there are going to be winners and losers, and a lot about being the winner is being the last man standing," Knight said Google is making its Gemini AI a central part of its Workspace productivity suite, a move that could significantly boost the chatbot’s user base across various industries. Gemini AI will now be incl
Mon, September 23, 2024
A Strong EV Supply Chain, Best Lease Deals, Millennials Aging Out of Tech Jobs
Shoot us a Text. With a new week comes the anticipation of being able to serve people, both inside and outside of the automotive industry. Today, we’ll be talking about a $1B investment in the EV supply chain, the best lease deals out there right now, and Gen Z taking tech jobs from Millennials. Show Notes with links: Monroe Capital is launching a $1 billion fund , backed by federal government programs, to support small auto suppliers in the shift to electric vehicles. This move aims to strengthen U.S. supply chains and competitiveness. The Drive Forward Fund will be backed by government-guaranteed lending via a Small Business Administration license. The U.S. Treasury also announced a $9.1 million grant to help Michigan suppliers secure EV financing. New U.S. tariffs and EV tax credit rules are encouraging a shift in supply chains away from China. “This fund will catalyze growth and innovation within America's automotive supply chain,” said Monroe CEO Ted Koenig. September 2024 is packed with unbeatable lease deals on electric vehicles , making it the perfect time to help customers make the switch to an EV. Here are some of the top offers: Hyundai IONIQ 5: $159/month for 24 months with $3,999 due. Hyundai IONIQ 6: $239/month for 24 months with $3,999 due. Tesla Model 3: $299/month (or $160/month after incentives). Kia Niro EV: $169/month for 24 months with $3,999 due. Chevrolet Equinox EV: $239/month for 24 months with $3,169 due. Toyota bZ4x: $239/month for 36 months with $2,999 due. VinFast VF8: $199/month for 36 months with $199 due. With tech jobs increasingly favoring younger applicants, Millennials—now in their 30s and early 40s—are facing growing competition from Gen Z as employers continue to celebrate youth over experience, prioritizing fresh perspectives, fast adaptability and cultural fit. New federal data reveals the number of workers under 25 in the US tech workforce grew by 9% annually from 2014-2022, surpassing industry averages. Nearly 41% of tech workers are aged 25 to 39, compared to 33% in the overall workforce. Workers over 40 are increasingly sidelined, despite laws protecting against ageism since 1967. Age discrimination complaints in tech account for 20% of all EEOC filings
Sat, September 21, 2024
Mr. Cox Goes To Washington
Shoot us a Text. Today on the show, Chris, Paul and Kyle invite Jordan Cox onto the show to grill him about his trip to the US Capitol. This week was the NADA Washington Conference, where dealers from around the nation come to DC to meet with their congressman and senators to talk about the importance of the auto industry. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, September 20, 2024
Used Car Supply Stable, GM Supercharger Access, Home Improvement Recovery
Shoot us a Text. It’s Friday again, and it feels like the first time in forever that we’re back in our normal seats. Today, we’re covering Cars Commerce’s latest Industry Insights Report, GM finally getting Supercharger access for its EVs and how home improvement is making a recovery because of the interest rate cut. Show Notes with links: Yesterday, CARS Commerce released their latest Industry Insights Report including a peek inside their 1st party data. Here are some highlights: Used-car supply is also more stable than its been -- up 2.3% YOY. However, the quality of the used-car inventory still leans older, and average odometer mileage increased 1.5% year over year as fewer late-model vehicles land on dealer lots. Trade-in values continue to slide, with August 2024 figures dropping below August 2022 numbers. Dealers are holding inventory longer — 53 days on average — as consumers wait for better pricing. 40% increase in new-car demand YOY, but that is not necessarily translating into a more robust market as we have seen a 38% increase in new-car days live. The common thread running through the market’s most affordable vehicles is alternative propulsion: Each of these models is either a full electric vehicle or offers a PHEV version : Ford Mustang Mach-E, Volkswagen ID.4, Mazda CX-90, Lincoln Corsair, Hyundai Ioniq 5 GM’s latest move allows their EV drivers to access Tesla’s robust Supercharger network, a game-changer for those driving Chevy, Cadillac, or GMC models. However, GM customers will need to invest in an adapter to tap into these benefits. GM EV drivers now have access to 17,800 Tesla Superchargers using a GM-approved Tesla adapter which costs $225, unlocking Supercharger compatibility Ford and Rivian offered adapters for free temporarily, creating some friction for GM buyers GM also focuses on flexibility, partnering with various suppliers to avoid reliance on Tesla. Wade Sheffer, VP of GM Energy, said, “Enabling access to even more publicly available fast chargers represents yet another way GM is focused on further improving the customer experience.” Home Depot and Lowe’s are already benefiting from the Fed’s recent rate cut, signaling a potential recovery in the home improvement sector as borrowing becomes more affordable for consumers. Home Depot and Lowe's shares rose following the Fed's half-point rate cut. The housing market is expected to "unfreeze" as
Thu, September 19, 2024
Finally An Interest Rate Cut, Ford Karaoke, AI Goes Hollywood
Shoot us a Text. Finally An Interest Rate Cut, Ford Karaoke, AI Goes Hollywood Description: Dealers across the country breathed a sigh of relief this morning at news of the Fed’s interest rate cut. We’ll be talking about that, plus how Ford is adding karaoke to vehicles and a partnership between a big Hollywood studio and an AI video generator. Announcement Upcoming ASOTU Edge Webinar on Wed September 25 at 2PM - Don’t Miss The Signals! How Unresolved Complaints Turn Into Compliance Nightmares with the Association of Finance and Insurance Professionals and DealerResolve Vincue Unleashed Sept 23-25 - ATAE Comms Nov Show Notes with links: After a long period of hesitation due to high prices and financing costs, the Federal Reserve’s September 18 interest rate cut of 0.5% could help revive consumer demand for vehicles. Dealers are optimistic that this move will spur more buyers into the market. Cox Automotive found that 67% of dealers viewed high rates as their top issue, while Edmunds said that 62% of consumers planning to buy a car within 12 months delayed purchases due to high rates. In August, new car loan interest rates averaged 7.1%, while used car loans hit 11.3%. TransUnion projects consumer demand may not fully recover until late 2024 or 2025 as interest rates and vehicle prices stabilize. Jessica Caldwell, head of insights at Edmunds believes the cut may push hesitant buyers back into showrooms, especially with year-end promotions, saying “While the rate cut alone may not flood showrooms, it creates a more favorable environment for buyers.” Ford is adding a new karaoke feature to some of its vehicles, enhancing road trip entertainment. A software update for the 2024 F-150 Lightning will introduce the Stingray Karaoke app, allowing passengers to sing along during drives. The app uses sensors to detect if a passenger is present, allowing them to control the experience via a QR code and smartphone. Initially available on the F-150 Lightning, the feature will expand to the Mustang Mach-E and select gas-powered Ford and Lincoln vehicles. The touchscreen will display lyrics only when the vehicle is parked, promoting safe driving habits. The Stingray app offers a wide variety of songs and lyrics in 38 languages. "Our goal at Ford is to continue to improve the ownership expe
Wed, September 18, 2024
Ram REVs Up EV Trucks, Tesla APR Incentives, Home Depot Overcharging Lawsuit
Shoot us a Text. Happy hump day! Today, we’re covering how Ram is set to enter the EV truck fray, how Tesla is prepping to move inventory with a new round of incentives and how Home Depot allegedly changed prices on consumers between the aisle and the register. Announcement Upcoming ASOTU Edge Webinar on Wed September 25 at 2PM - Don’t Miss The Signals! How Unresolved Complaints Turn Into Compliance Nightmares with the Association of Finance and Insurance Professionals and DealerResolve Vincue Unleashed Sept 23-25 - ATAE Comms Nov Show Notes with links: Ram is p reparing to make a strong entrance into the electric vehicle (EV) market. With the 1500 REV set to arrive in 2025, followed by the range-extended 1500 Ramcharger, Ram aims to blend innovation with practicality. The 1500 REV, Ram's first fully electric pickup, offers a standard 168 kWh battery with up to 350 miles of range and an optional 229 kWh battery pack targeting 500 miles. The 1500 Ramcharger, set for 2025, is an electrified model with a range-extending 3.6L V-6 engine and a generator. The vehicle promises 663 horsepower and over 615 lb-ft of torque, with a towing capacity of 14,000 lbs. Ram is looking ahead to the future of heavy-duty pickups, with next-gen 2500 and 3500 models expected around 2030. Bob Broderdorf, former Ram global operations officer, now Jeep North America head, said, "Everybody can throw down a big range, etc. OK, do it while towing with payload. That is what we're trying to drive home.” Known for its end-of-quarter discounts, Tesla has rolled out significant financing incentives to ramp up sales and clear inventory with new offers across its lineup. Tesla is offering 0% down payment and a low 2.49% APR on Model 3 and Model Y, with rates dropping to 1.99% with a small down payment. The promotion runs until September 30, coinciding with the end-of-quarter sales push. Tesla has also reintroduced a referral program offering a $1,000 discount on new vehicles. Every Tesla model has some sort of incentive attached to it, except the Cybertruck Analysts expect these promotions to boost U.S. sales, though demand in China and Europe remains sluggish. Home Depot is settling a lawsuit for almost $2 million after being accused of overcharging customers due to "scanner violations" in California, w
Tue, September 17, 2024
VW Shifts Loans To Wells Fargo, Sticker Shock is Real, Auto Debt Surpasses Student Debt
Shoot us a Text. We’re brimming with energy on this Tuesday morning, as we discuss VW’s decision to originate its US auto loans through Wells Fargo. Plus we talk about the growing gap between car buying expectations and car buying reality and how auto debt just continues to grow. Show Notes with links: Volkswagen is ceasing to originate U.S. auto loans for Audi and VW through its in-house finance division, Volkswagen Financial Services (VWFS). Starting in April, Wells Fargo will take over this responsibility. Wells Fargo will be responsible for processing all loan applications, underwriting, and servicing loans for VW and Audi customers. VWFS will shift its focus to consumer leasing, usage-based products, and new mobility solutions, aligning with Volkswagen Group’s broader growth strategy in the U.S. market. The transition is part of a "multi-year co-branded agreement" aimed at offering improved retail financial solutions for VW, Audi, and Ducati. VWFS will continue managing current loans on its books after the April transition. Ernst Jan van Eijkelenburg, CEO of VW Credit: “This is a union of great strengths... supporting our brands, dealers, and customers.” A new report from Edmunds highlights the growing disconnect between what car shoppers want to pay and the prices they’re encountering in the market today. According to Edmunds, the average trade-in age for new vehicles is six years, meaning many shoppers returning in 2023 last bought in 2018. 64% of used car buyers aim to spend under $20,000, and 50% target $15,000 or less, but only 5% of transactions were below $10,000, with the average used car costing $26,936. Similarly, 48% of new car buyers want to spend $35,000 or less, but the average new car price in July was $47,716, with almost no vehicles under $20,000. Over 73% of respondents have delayed buying a vehicle due to high prices, 62% due to high interest rates, and more than half are cutting other expenses or working extra hours to afford one. Jessica Caldwell, Edmunds' head of insights: "Consumers are likely being forced into trade-offs, selecting different brands, older vehicles, or even postponing purchases.” A new report from the Financial Times highlights the growing burden of auto loan debt , which now accounts for 9% of household debt, second only to mortgages and surpassing student loans. Auto loan delinquencies are nearin
Mon, September 16, 2024
Volvo Ditches Subscription, Waymo Expansion Plans, Shopify Roblox Integration
Shoot us a Text. It’s a brand new week and we’re heading to Will Guidara’s Welcome Conference in NYC. Before we get there, we need to talk about how Volvo is giving up on car subscriptions, more places you can take an autonomous rideshare, and more ways to buy physical items in Roblox. Show Notes with links: Volvo has officially ended its vehicle subscription program , Care by Volvo, which launched in 2017. The service offered a bundle of vehicle use, maintenance, and other benefits under a single monthly payment of $600-$800/month across more than 40 states. Volvo announced on September 12 that the program is suspended "for the foreseeable future." Volvo had previously marketed the program as a way to attract younger, first-time Volvo customers, with 80% of subscribers being new to the brand. Existing subscribers can complete their terms and receive a credit toward a new Volvo purchase or lease. The decision allows Volvo to focus on its core offerings and future product introductions. Spokesperson Russell Datz stated, “This allows for concentrated focus on our core customer offers and the coming introduction of new products.” Uber and Waymo are taking their autonomous ride-hailing partnership to new cities, Austin and Atlanta, with a rollout expected early next year. This marks an expansion of their driverless car services beyond Phoenix. Uber will dispatch Waymo's all-electric Jaguar I-PACE vehicles in the new cities with the fleet set to grow to "hundreds" of vehicles over time. Shares of Uber rose 5%, and Alphabet's stock increased by 2% following the news. This comes amid increased regulatory scrutiny of self-driving technology after several crashes. "The expansion reflects Uber's ongoing commitment to EVs and autonomous tech partnerships,” Uber shared in the release. Roblox has teamed up with Shopify to allow physical products to be sold in its metaverse, marking Roblox's first major e-commerce integration. The partnership enables developers and brands on Shopify to sell physical items directly within Roblox games. The pilot program starts this year, with a full launch expected by early 2025. The collaboration builds on Roblox’s past shopping experiments with brands like E.l.f. Cosmetics and Walmart. Shopify highlighted the importance of this integration for Gen Z entrepreneu
Sat, September 14, 2024
Dealers Honoring Our First Responders On a Special Day
Shoot us a Text. Today, Nathan, Chris and Jordan take over the show to talk about how a Cumming, Georgia dealership honored their first responders on 9/11 by feeding them lunch and giving the community an opportunity to get involved! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, September 13, 2024
Buy/Sell Market Setting Records, Ford Pro Architect Retires, Discretionary Spending On The Rise
Shoot us a Text. Is it already the end of another week? We’re looking back this morning as we look at buy/sell activity from the first half of the year, reflect on the legacy of Ford Pro CEO Ted Cannis, and dig into how discretionary spending is on the rise. The first half of 2024 has shattered records in the dealership buy/sell market . With 204 dealership transactions completed and 381 franchises sold, this is nearly double pre-pandemic levels. So, what’s fueling this surge? Blue sky values are up 74% from pre-pandemic, driving sellers to cash out. Despite a 35% drop in average earnings, consolidation continues strong as multi-dealership sales (55 transactions) account for 27% of the market. Public dealer groups have $7.4B in capital, driving the frenzy. Shout out to all of our friends at Lithia & Driveway, Morgan Auto Group, Ciocca Automotive, Ourisman Automotive Group, Nucar Family of Dealerships, Hudson Automotive Group, Premier Truck Group, just to name a few of the many auto groups who have gained new partners this year. A Kerrigan Advisors report reveals, "This unprecedented market activity highlights the industry's ongoing transformation." Ted Cannis, CEO of Ford Pro and key architect of Ford's commercial vehicle division's success, is set to retire at the end of September . His leadership helped Ford Pro become a $70 billion business within just a few years. Cannis led development of the Mustang Mach-E and had key roles in Ford's overseas operations. Ford Blue President Andrew Frick will serve as interim Ford Pro CEO while a replacement is sought. Ford Pro’s earnings forecast was raised by $1 billion, expected to reach $9-$10 billion for 2024. CEO Jim Farley praised Cannis’ role in driving Ford Pro’s success and technological growth. Cannis emphasized Ford Pro’s unmatched scale, service, and dealer network, saying "Leading Ford Pro has been the most thrilling chapter of my career, and I’m excited to see its continued growth." Despite continued economic uncertainty and consumer caution, discretionary spending is beginning to show signs of recovery in certain sectors. While overall non-discretionary spending remains strong, discretionary categories like apparel, home goods, and electronics are seeing early signs of a rebound. A Deloitte survey found that discretionary spending was down 18.6% from 2
Thu, September 12, 2024
GM + Hyundai = Team Up, Stellantis + Dealers = Squabble, Consumers Accepting Cookies
Shoot us a Text. As we’ve passed the halfway point of the week, we’ve got Michael Cirillo in the studio to discuss GM and Hyundai’s new partnership, how Stellantis and its dealers are in a little bit of a tiff, and a new study that says consumers know exactly what they’re doing when they accept website tracking cookies. Show Notes with links: General Motors and Hyundai Motor Co. have announced a partnership aimed at exploring collaboration in a variety of technological and production areas. With the increasing demand for efficiency and innovation in the automotive industry, both companies are looking to scale up operations and reduce costs. The collaboration includes vehicle development and clean-energy technologies, such as electric and hydrogen powertrains. Both companies will explore co-development opportunities in passenger and commercial vehicles, as well as internal combustion engines. They will also review joint sourcing opportunities in battery materials, steel, and more to reduce costs and improve efficiencies. GM and Hyundai’s combined sales of over 10 million vehicles annually could rival giants like Toyota and Volkswagen in scale. Hyundai Executive Chair Euisun Chung emphasized the potential to enhance competitiveness: “This partnership will enable Hyundai Motor and GM to evaluate opportunities to enhance competitiveness... through our combined expertise and innovative technologies.” Stellantis announced a 21% increase in August sales and dealer inventory falling by 10% over the last 2 months. Despite these gains, the automaker's U.S. dealers have expressed dissatisfaction with CEO Carlos Tavares. The Stellantis National Dealer Council claimed Tavares' "short-term decision making" hurt brands like Jeep, Ram, and Chrysler and urged Stellantis to spend more on clearing outdated inventory, citing declines in U.S. sales. They stated in a letter, “For over two years now, the US Stellantis National Dealer Council has been sounding this alarm to your US executive team, warning them that the course you had set for Stellantis was going to be a disaster… and now that disaster has arrived.” Stellantis responded to the letter: “We don’t believe personal attacks are the most effective way to solve problems.” A new survey shows that <a href='https://www.retailbrew.com/stories/2024/09/11/most-consumers-know-exactly-what-they-re-signing-up-for-when-they-a
Wed, September 11, 2024
Ally Faces Credit Crunch, GM Employees On The EV Train, The EV Slowdown Myth
Shoot us a Text. Today, we pause and reflect on the events of 9/11/2001. No crisis can win. It’s Wednesday and DG is back for round two. We’re talking about how Ally Financial is dealing with consumer credit challenges, how GM is drawing a line in the sand for its salaried employees and busting the EV slowdown myth. Show Notes with links: Ally Financial is grappling with growing credit challenges as high inflation impacts borrowers, resulting in increased delinquencies. Shares plummeted 17.62% on Sept. 10, signaling the pressure the lender faces Delinquencies in Ally’s retail auto sector increased by 20 basis points in July and August compared to Ally’s expectations, and net charge-offs (unrecoverable debts) increased by 10 basis points during the same period. Borrowers are also cutting back on loans amidst high interest rates. Ally has sold its lending business to Synchrony Financial to address its credit issue. CFO Russell Hutchinson specifically mentioned that the number of borrowers in the 61+ day delinquency category has become a point of concern, with more underperformance expected in this bucket General Motors is intensifying its push toward an all-electric future , making it clear that salaried employees must align with its EV vision or move on. A series of organizational changes this year underscores GM’s dedication to selling only electric vehicles by 2035. GM is downsizing its global headquarters to streamline operations and create cost efficiencies. As we covered early this year, the automaker revised how it evaluates employee performance, with a stronger focus on productivity and innovation. New bonus metrics now align more closely with the company's EV goals, emphasizing those who contribute to the transition. Remote work privileges have been reduced for some employees to promote better in-office collaboration and push productivity. The goal is to become more agile and tech-focused, modeled after top-performing companies in the technology sector. Despite misleading headlines claiming otherwise, EV sales continue to rise globally , though growth percentages have naturally slowed as the market expands. Media reports about an EV sales “slump” overlook key data points. Misinformation has led some to believe EV sales are dropping, but the reality shows the opposite: gas-powered car sales are actually declining. Despite declines from major au
Tue, September 10, 2024
Rivian Referrals, Toyota’s Long Range Battery Plans, iPhone Intelligence
Shoot us a Text. As we turn into Tuesday, we’ve got guest host Daniel Govaer with us in the studio! Today we’re looking at Rivian’s referral program, what the future holds for Toyota’s battery production and recap everything from Apple’s iPhone announcement event. Show Notes with links: Rivian is rolling out its first referral program to help drive sales of its R1T and R1S models, joining Tesla and Lucid in the referral game. This program includes credits and perks, making it more enticing for new buyers and existing owners. Rivian's program offers $750 credits to both referrers and new buyers, plus six months of free charging at Rivian’s Adventure Network. The first 100 owners who make 25 referrals will be rewarded with an exclusive adventure weekend, further enhancing Rivian’s focus on lifestyle and experiences. Currently limited to U.S. owners but will expand to Canada in 2024. Tesla offers referrers a $500 gift card and buyers a $1,000 discount, while Lucid provides up to $1,250 in vehicle discounts for buyers and points for referrers to redeem for merchandise. "These programs appeal to automakers because they’re less expensive to run compared to traditional advertising," said Ivan Drury of Edmunds. Toyota has received official approval from Japan's Ministry of Trade and Industry (METI) to move forward with its all-solid-state EV battery development . This certification allows the automaker to boost domestic production as part of Japan’s strategy to reduce dependence on foreign battery suppliers. Subsidiaries like Prime Planet Energy Solution and Primeearth EV Energy will spearhead production. Toyota's roadmap includes launching "Performance" batteries by 2026, offering up to 500 miles of range. The company plans to introduce all-solid-state batteries with 620 miles of range and 10-minute fast charging by 2028. Japan is investing $7 billion to boost battery production and reduce reliance on China and South Korea. Apple’s “It’s Glowtime” event showcased exciting new updates , including the highly anticipated iPhone 16, updates to the Apple Watch, and new AirPods models, all set to release on September 20th. iPhone 16 adds a DSLR-style capture button and stacked rear cameras for spatial video. iPhone 16 Pro introduces a larger display, upgraded A18 Pro chip, and improved cameras. Apple Watch Series 10 has a thinner profile,
Mon, September 09, 2024
Polestar CEO Pushes for Software, Tesla Patents Wireless EV Charging, Autonomous AI Is Coming For Your Job
Shoot us a Text. It’s a great Monday as we launch into the week with guest host Ben Hadley. Today we’re talking about software-defined vehicles and how Polestar is leaning in, Tesla’s recent patents for wireless home EV charging and autonomous AI bots that are starting to become effective in business. Show Notes with links: Polestar CEO Thomas Ingenlath believes the transition to software-defined vehicles (SDVs) represents a major leap forward in automotive innovation. He stresses that SDVs are not just a buzzword but an essential shift as software takes a central role in shaping vehicle performance and user experience, particularly for Polestar’s electric lineup. Ingenlath sees enormous potential in SDVs, transforming vehicles far beyond connectivity features, including how they drive, accelerate, and manage energy systems. Software complexity caused significant delays for the Polestar 3, as the crossover shares its platform with Volvo’s EX90, which experienced similar issues. Polestar’s sales goals were impacted by the delays, with the company falling short of its 2023 target by selling 54,600 vehicles instead of 124,000. The SDV focus isn’t unique to Polestar, as Audi recently created a management role dedicated to SDVs. "That is how much of an impact software has. It changes the physical behavior of a car,” Ingenlath said. Tesla is advancing wireless home EV charging , revealed through new patent applications, signaling a shift toward autonomous charging solutions. Tesla’s wireless charging aims to remove the need to manually plug in your car, a convenience that aligns with its goal of autonomous driving. Wireless charging has historically been less efficient than cable-based options, but new methods, such as magnetic resonance, claim similar efficiency (~95%). Patents reveal Tesla’s focus on solving technical challenges like ground leakage and temperature management to improve efficiency. Chief designer Franz von Holzhausen confirmed work on a wireless charging pad, with possible applications for the Cybertruck and other models. Researchers at Stanford have developed “Smallville,” a game featuring AI-driven agents that can autonomously perform tasks. These agents, powered by large language models (LLMs), demonstrate why autonomous AI will become essential for organizations. AI agents in Smallville can remember, plan, and act independen
Sat, September 07, 2024
Car Shows creating Community
Shoot us a Text. Today on the show, Kyle, Chris, and Jordan talk about how cars shows create community and then featuring Walser's recent Subarus and Cold Brews event . Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, September 06, 2024
Dealers Pessimistic Outlook, Japan’s EV Battery Push, The OG Mustang
Shoot us a Text. We’re almost through the week, and we’ve got Steve Greenfield back with us today to help us understand why dealers are feeling a little pessimistic about Q3. Plus we’ll discuss how Japan is investing heavily in EV battery production and have a little bit of nostalgia about a historic Mustang. Show Notes with links: Franchised dealers grew more pessimistic going into Q3 , with a Cox Automotive poll revealing concerns about interest rates, the economy, and election uncertainty. The Dealer Sentiment Index fell below 50 for only the third time in its seven-year history, indicating negative expectations for the near future. Dealers rated their three-month outlook at 49, down from 52 the previous quarter, signaling waning confidence. Interest rates (67%), the economy (53%), and political uncertainty (49%) were the top concerns affecting franchised dealers. Jonathan Smoke said that with the exception of interest rates, today’s economy suggests that the SAAR should be 17 million given demand. However, it currently sits at 15.4M Profitability also dipped, with dealers reporting a score of 43, well below pre-pandemic levels. "To say that profits are today worse than they were before, I think, is thinking beyond new-vehicle gross margins and thinking about the other expenses that dealers have that are still being impacted by inflation and higher costs and higher interest rates, which make it very expensive to hold inventory," Smoke said Japan is investing heavily to secure its electric vehicle battery supply chain, offering up to 350 billion yen ($2.4 B) in subsidies. The funding will boost production for companies like Toyota, Nissan, Mazda, Subaru and Panasonic, aiming to increase the nation's storage battery capacity by 50%. The combined investment from the four automakers, along with Japanese government subsidies, totals over ¥944.6 billion ($6.58 billion) The goal is to increase Japan's battery production capacity from 80 GWh to 120 GWh annually. Toyota is leading Japan’s EV battery push by developing next-gen solid-state and performance lithium-ion batteries, with plans to start production by 2026, Subaru and Mazda will partner with Panasonic for cylindrical lithium-ion battery production, while Nissan plans to produce lithium-iron-phosphate batteries for mini-EVs by 2028. "We hope these efforts will strengthen Japan's battery industry," said Ken Saito, Minister of Economy, Trade, and Industry. Bill
Thu, September 05, 2024
VW vs The Union, Dealership Cybersecurity Survey, Tesla Crime Cameras
Shoot us a Text. Happy Thursday! Today, we’re joined by the one and only Steve Greenfield, as we discuss VWs plans to close plants in Germany and its showdown with the union, how dealers should be improving their cybersecurity, and why Oakland police are towing Teslas to get their camera footage. Show Notes with links: Volkswagen CEO Oliver Blume is on a collision course with Germany's powerful labor union, IG Metall, as VW considers job cuts and plant closures to reduce costs. VW may end a 30-year-old job security agreement and close plants in Germany. VW hasn't closed a plant since 1988, but Blume is pushing for bold changes. The IG Metall union vows to "fiercely resist" any closures. VW works council head Daniela Cavallo says the upcoming worker-management meeting will be "very uncomfortable." With electric vehicle demand slowing and competition rising, Blume faces intense pressure. Analyst Matthias Schmidt commented, "If Blume can make the move stick, decades of past CEOs will feel vindicated." Cybersecurity is increasingly important to consumers shopping online , with 80% expressing concerns in a survey by Experian. The data shows dealerships need to prioritize security in their digital retail platforms as online fraud and data breaches rise. Identity theft is the top online concern for consumers. Digital processes at dealerships have become targets for fraudsters due to weak cybersecurity, according to Kanchana Sundaram, the senior director of product and innovation at Experian. Almost half of those surveyed trust businesses with visible cybersecurity measures. The survey shows consumers want digital retail tools to take cybersecurity seriously. Top 5 measures to provide a secure online experience: Physical biometrics, Pin code sent to mobile device, Behavioral biometrics, Security questions, and Passwords Sundaram said: "Consumers want easy, secure transactions with trusted brands like Amazon." Tesla’s Sentry Mode is gaining attention as Oakland police utilize the technology to aid investigations. Initially designed to catch Tesla-related crimes, it is now helping police capture general crime scene footage. Tesla launched Sentry Mode in response to break-ins in 2018-2019 and uses Tesla’s existing cameras to record while the car is parked. It has been pivotal in solving vandalism and other non-car-related crimes. Polic
Wed, September 04, 2024
Sales Climb In August, Qualcomm Leads the Chip Pack, Canva Gets Pricey
Shoot us a Text. Wednesday’s here! We’ve got Michael Cirillo joining the show to talk about the first look at August sales numbers, what’s happening on the chipmaker front in automotive and whether Canva’s new price strategy will backfire. Show Notes with links: The auto industry is poised to post its highest sales volume of the year in August, projected to rise by 7-8%, thanks to strong demand for crossovers and hybrids, as well as Labor Day discounts and extra selling days. Hyundai sales surged 22%, led by an 81% increase in hybrid models, with the Santa Fe up 120% and Tucson up 97%. Kia’s sales grew 4.3% Day supply is at 68 days, up from 54 a year ago. Average incentives are $3,035 per vehicle, up 60% from 2023. Only 13% of vehicles were projected to sell above sticker last month. Average transaction prices landed at $44,039, down $1,895 (4.1%) from August 2023 Industry analysts forecast a SAAR of 15.2 million to 15.4 million vehicles for August, in line with last year but down from July's pace. "New vehicle affordability remains the biggest obstacle," said Chris Hopson of S&P Global Mobility, citing high interest rates and slow vehicle price reductions. As cars evolve into rolling supercomputers, chipmakers Qualcomm, Nvidia, and Mobileye are at the forefront, competing to supply the technology that will drive the next generation of vehicles. Qualcomm's automotive revenue surged 87% to $811 million in Q2, thanks to its focus on connectivity and its "digital chassis" platform that supports in-cabin tech and driver-assist functions. Nvidia reported $346 million in automotive-specific revenue, a 37% year-over-year increase, though still less than half of Qualcomm’s growth rate. Mobileye, known for its driver-assist and computer vision technology, posted $439 million in Q2 automotive revenue, a 3% decline from the same period in 2023, citing challenges in the Chinese market. Qualcomm’s automotive pipeline is valued at $45 billion, based on customizable systems for automakers like GM, BMW, and Volvo. While Nvidia focuses on autonomous driving, Qualcomm is capitalizing on the growing demand for in-cabin experiences. Canva’s aggressive integration of generative AI tools is driving up prices for its Canva Teams subscription by over 300%, leaving many users facing significant cost increases as the platform expands its offerings. Canva Teams users in the U.S
Tue, September 03, 2024
Rigged Robotaxi?, EV Buses Charging The Grid, “Open To Work” Insights
Shoot us a Text. It’s Tuesday, Kyle’s back, and we’re ready to hit the ground running after the Labor Day holiday. Today we’re talking about data that suggests Tesla might rig its robotaxi debut, how the Oakland School District went EV with its buses and ask whether you should use LinkedIn’s “Open To Work” banner. Show Notes with links: Tesla is set to unveil its highly anticipated robotaxi at the the iconic 110-acre Warner Bros. lot in Burbank CA, on October 10. This event marks a significant shift in Tesla's focus towards autonomy and artificial intelligence. Tesla aims to demonstrate its purpose-built robotaxi, highlighting a move away from traditional EV sales. The robotaxi will be part of Tesla's proprietary ride-hailing app, featuring both robotaxis and autonomous consumer cars. This event was initially planned for August 8 but was postponed due to design changes and prototype delays. Tesla hacker “Green” has revealed that Tesla is gathering specific data around the Warner Bros. studio where it plans to unveil its Robotaxi, raising concerns that the company might stage a demonstration similar to a controversial 2016 Autopilot video that was pre-mapped and optimized. There is speculation that Tesla might opt for a geo-fenced operation for its Robotaxi, similar to Waymo and Cruise, which would be a departure from its original vision of a fully autonomous system that can operate anywhere. Oakland Unified School District has made history by deploying the nation's first fully electric school bus fleet equipped with Vehicle-to-Grid bi-directional charging technology, signaling a major step forward in sustainable student transportation. The fleet of 74 buses will return 2.1 gigawatt hours of energy to the grid annually via an AI-managed Virtual Power Plant. This initiative is expected to eliminate 25,000 metric tons of greenhouse gases, addressing decades of toxic diesel emissions, reducing the community's exposure to harmful pollutants and improving student health. Student transportation is the largest mass transit system in the U.S., carrying 27 million students every day. "This is a landmark achievement, especially in Oakland, where families are disproportionately impacted by exposure to air pollution and high rates of asthma," said Dr. Kyla Johnson-Trammell, Superintendent of OUSD. Job seekers face a <a href='https://www.busi
Mon, September 02, 2024
Labor Day Special - Rescuing Chrysler, Dodging Parking Scams
Shoot us a Text. It’s Labor Day and dealers all over will be out in force selling and servicing cars today. We’ve got our own Labor Day special, talking about a bold plan to reinvigorate the Chrysler and Dodge brands and how to watch out for QR codes scams. Show Notes with links: Frank Rhodes, great-grandson of Walter P. Chrysler, has proposed a bold plan to r escue the iconic Chrysler and Dodge brands from Stellantis' European ownership. His vision involves revitalizing these American automotive giants with a fresh approach and new leadership. Rhodes has written an open letter to Stellantis CEO Carlos Tavares, outlining his acquisition plan, saying "I believe that my plan would allow Stellantis a graceful and profitable exit from a brand that in my opinion it has no interest in keeping, and it is already trying to somehow quietly exit without a lot of publicity and minimal UAW membership turmoil," Stellantis responded in a statement: "Stellantis acknowledges the interest in its North American brands and reaffirms the Company's commitment to its entire portfolio of 14 powerful, iconic brands, which were each given a 10-year timeframe to build a profitable and sustainable business… The Company is not pursuing splitting off any of its brands." It is unclear if Rhodes has the funding to accomplish the purchase if Stellantis were to agree to it. Chrysler will celebrate its 100th anniversary in 2025. In a YouTube video, Rhodes passionately states, "I'm very proud of what this company did, and I don't want to see it go away. We need to keep our American brands here." Scammers have found a new way to steal your credit card information, and this time, they're targeting parking meters . In Southern California, fraudulent QR codes are being placed over legitimate ones, tricking people into giving away their financial details. The FBI reported that Americans lost over $150 million last year to fraudulent QR codes. Redondo Beach, CA, discovered nearly 150 fake QR codes on parking meters, with URLs that closely mimic legitimate payment sites. Some of the fake codes actually sent drivers to a website called "poybyphone" instead of PayByPhone - just one letter off. The FTC advises scrutinizing URLs for misspellings or errors before entering payment details to avoid falling victim to this scam. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: <a href='https://ww
Sat, August 31, 2024
We Won An Award! (And Other Philosophical and Theological Musings)
Shoot us a Text. It's a Saturday close to the month of August, and we've got some fun vibes this morning as Head Writer Chris Reeves and Head of Community Jordan Cox join Paul on the show. Last week at the NAMAD Annual Meeting, we won the Women of Color Automotive Network (WOCAN)'s Ally of the Year Award! We are honored and thankful to support an amazing organization! Galatians 6:10 "So then, as we have opportunity, let us do good to everyone..." Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, August 30, 2024
Carvana Megasite, New Blue Sky Outlook, Dealership Sting Operation
Shoot us a Text. It’s the fifth Friday of the month heading into a holiday weekend, and we are covering how Carvana is launching a megasite, the latest on dealership buy/sell trends from Haig Partners, and a dealership delivery that ended in an arrest. Show Notes with links: Carvana is transforming the ADESA Kansas City location into its first "megasite," blending auto auctions with vehicle inspection and reconditioning. This move is set to create 200 new jobs in Belton, Missouri, further expanding Carvana’s retail and wholesale operations. The megasite model is unique to Kansas City; other locations like ADESA Buffalo and Portland will remain online-only auctions, even though they were previously announced as incorporating recon operations. Carvana acquired the 56-site ADESA network in 2022 and is now integrating it into its operational infrastructure. The site began operations in August, with roles including technicians and logistics associates. Brian Boyd, SVP of Inventory at Carvana, stated, “As Carvana transitions to its long-term phase of driving profitable growth, we are excited to further tap into the power of our infrastructure by bringing inspection and reconditioning capabilities to more ADESA sites." Haig Partners has released its Q2 2024 Haig Report® , detailing a shift in the auto retail marketplace from record profits and high dealership values. The report highlights a 32% decline in dealership profits and evolving trends in buy-sell transactions. Average dealership pre-tax income in Q2 2024 was $1.0M, a 35% drop from Q2 2023. The number of dealerships sold in Q2 2024 is on track to decline 11% from 2023, but 2024 is still on track to be the 4th most active year for buy/sells. Blue sky values remain elevated but are down 11% from the end of 2023, still more than double pre-pandemic levels. Public auto retailers significantly reduced spending on domestic dealerships, with Lithia being the only active buyer. Quote from Alan Haig - “We know that many dealers who wanted to grow were sitting on the sidelines over the past few years as they waited for prices to fall. Now is the time to get up!” A viral TikTok video from Gossett Kia in Memphis shows a <a href='https://www.autonews.com/dealers/ki
Thu, August 29, 2024
Tesla Fights Tariffs, Gen Z Drives More, Most Disappointing National Park
Shoot us a Text. It’s a great Thursday to be in the retail auto industry and we’ve got the one and only Ben Hadley on the show today. We’re covering how Tesla is pushing back against Canadian tariffs, how Gen Z and Millennials are driving more than previous generations and how the most disappointing national park responded to its ranking. Show Notes with links: Tesla has reportedly lobbied the Canadian government for lower tariffs on China-made electric vehicles before Canada announced a 100% duty. This comes as Canada states an over-abundance of Chinese imported EVs and decided to align with the U.S. to impose tariffs on Chinese EVs starting October 1. Tesla requested a lower tariff rate, similar to the 9% imposed by the EU on its vehicles. Tesla has been exporting Model 3 and Model Y from Shanghai to Canada. Canadian EV imports from China surged by 460% in 2023, driven largely by Tesla shipments. A government source noted Tesla's approach, but no comment has been made by the company. A new survey from Enterprise Mobility reveals that Gen Z and millennials are driving more than previous generations, challenging the notion that younger people are less interested in cars. Gen Z and millennials report driving more now than five years ago. 73% of Americans still see privately owned vehicles as their top transportation choice in the next decade. While excited about autonomous vehicles, 72% of respondents prefer being in control of their car. EV adoption faces challenges, with 68% citing inadequate charging infrastructure as a major barrier. The survey shows most commuters are unaware of alternative transportation solutions like car sharing and vanpooling. After Mammoth Cave National Park was listed as the 3rd most disappointing US tourist attraction in an online study, they flipped the script on bad reviews, embracing its reputation as a "disappointing" tourist attraction with a viral, tongue-in-cheek social media post. The post reads: “Come experience what has disappointed millions of people for over 225 years!” “Visit our website and choose from one of our many activities that will leave you unfulfilled! You can be disappointed by a “dry hole with very few stalagmites and stalactites” or discover nothing “other than trees” on over 80+ miles of
Wed, August 28, 2024
Hyundai Hybrid, Most Reliable Used Cars, Autotrader Dog ASMR
Shoot us a Text. Happy Hump Day! On this Wednesday, we’ve got guest host Erikka Tiffani Wells in the studio, talking about Hyundai pressing in on hybrids, the most reliable used car brands, and how Autotrader is helping dog owners with their travel. Show Notes with links: Hyundai is pivoting towards expanding its hybrid offerings due to slowing demand for fully electric vehicles. The automaker plans to significantly increase its hybrid lineup and aims to more than triple its global hybrid sales by 2028. Hyundai will double its hybrid models from seven to 14, including new drivetrains with new extended-range hybrids set to release in 2025. Hybrid sales are forecasted to surge to 1.33 million by 2028, up from 510,000 in 2023. North America will see the most significant increase, with sales tripling by 2028. This is part of Hyundai’s target of 5.55M annual global sales by 2030, up 30% from 2023. CEO Jaehoon Chang shared “with the recent slowdown in the EV transition, the demand for hybrids has been picking up.” Toyota and Lexus continue to dominate in reliability , according to Consumer Reports' first survey ranking used vehicles by brand. Their reputation for dependability makes them top choices for buyers seeking long-term value. The survey covered over 150,000 vehicles, focusing on issues in 2014-2019 models, with ratings based on 20 trouble areas, including brakes, engines, and transmissions. Top 10 were: Lexus, Toyota, Mazda, Acura, Honda, Buick, BMW, Subaru, Nissan, Mercedes-Benz Bottom 5: Ram, Jeep, Tesla, Dodge, Chrysler According to a June survey by Consumer Reports, 40 percent of Americans in the market for a vehicle in the past year considered only used cars. Autotrader is making car rides more enjoyable for dogs and their owners by launching a new ASMR-inspired Spotify playlist designed to relax pets during trips in celebration of yesterday’s National Dog Day. A Cox Automotive survey found 52% of dog owners experience stress managing their dog’s anxiety in the car. Country singer Walker Hayes supports the initiative, emphasizing the playlist's benefits during family travels. Autotrader is also providing tips, car accessory recommendations, and top car brands for dog owners. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at ht
Tue, August 27, 2024
CDK Data Safe!, The Future of Mobility, GPT High School
Shoot us a Text. There’s 5 days left in the month as we welcome guest host Steve Greenfield back to the show. Today, we’re covering the CDK cyberattack for hopefully the last time, Steve’s new book on mobility and a unique high school that is replacing teachers with AI. Show Notes with links: CDK Global reports that two significant cyberattacks in June did not result in t he theft of dealership employee or consumer data following a 3rd party expert review, despite causing widespread disruption across North America. "We are pleased to report that after conducting a thorough third-party expert review of the June 19th cyber incident, we have not discovered a compromise of reportable dealer employee or consumer personally identifiable information,” said a CDK spokesperson The attacks led to a two-week shutdown of its dealership management system, affecting 15,000 dealerships. CDK offered a one-month rebate to customers impacted, though some dealers felt it was insufficient. CDK continues to work on minimizing future risks and addressing pending lawsuits related to the attacks. The CDK spokesperson added, "Dealers can now reassure both their employees and consumers that their data is secure and continue to focus on providing excellent experiences throughout the car buying and owning journey." Steve Greenfield recently wrote a book called “The Future of Mobility” , exploring the next 10 years, and how we will move people and goods by Land, Sea, Air and Space. A high school in London is shaking up education by introducing AI tools, including ChatGPT, to replace teachers for some students, aiming to personalize their learning experience. David Game College is piloting this AI-driven program with 20 students, focusing on subjects like English, mathematics, and science. The AI tools will provide personalized learning paths, allowing students to learn at their own pace. John Dalton, co-principal, emphasized that this approach could enhance student confidence and mental health by enabling mastery of subjects. Students will still receive human support through full-time learning coaches and a diverse afternoon curriculum. Critics warn that AI can’t fully replace the value of human educators, highlighting past failures like LA’s AI chatbot, Ed. John Dalton, co-principal of David Game College shared "the system does not judge students. Instead, it allows them to learn at their own pace in a safe environment.” </u
Mon, August 26, 2024
Holman is 100, Toyota Doubles Down, and Loyal Gen Z
Shoot us a Text. Let’s kick off the last week of the month with guest host Daniel Govaer as we celebrate Holman’s century of automotive excellence, explore Toyota’s bold hybrid-only strategy as EV demand shifts, and dive into surprising brand loyalty trends among Gen Z. Show Notes with links: Holman marks a century of automotive innovation and growth , celebrating its 100th anniversary on August 23rd. From a single Ford dealership founded by Steward C Holman in 1924 in New Jersey, Holman has evolved into one of the largest family-owned automotive services organizations worldwide. The company now operates over 59 dealerships across nine U.S. states and employs over 9,000 people globally, with a presence in the United Kingdom, Canada, Germany, and Mexico. They have expanded into various automotive services, including fleet management, commercial vehicle equipment manufacturing and powertrain distribution. Mindy Holman, Chair of the Board, emphasizes the company's commitment to its employees and customers. “As I reflect on this milestone, I’m incredibly grateful to our people... I know dad and granddad would be equally proud,” Toyota is doubling down on hybrids , with plans to potentially convert most of its Toyota and Lexus lineup to hybrid-only models. This bold move challenges the industry's push toward full electrification. Toyota may phase out gasoline-only models in the US, starting with the Camry and RAV4. The company aims for 50% of its U.S. sales to be hybrids by next year. Hybrids offer Toyota an edge in meeting strict U.S. emissions regulations. Toyota’s hybrid sales surged 66% through June 2023, far outpacing its EV sales. Chairman Akio Toyoda has emphasized a "multi-pathway" strategy, including hybrids, EVs, and hydrogen. "Going forward, we plan to evaluate, carline by carline, whether going all-hybrid makes sense," said David Christ, Head of Sales and Marketing for Toyota in North America. Despite common perceptions, Gen Z is proving to be highly loyal to brands . A recent survey by Medallia Market Research reveals that 61% of Gen Z shoppers consider themselves “forever customers,” outpacing Millennials (57%) and Boomers (43%). Most customers find loyalty after a positive interaction with the brand. Price is the top factor for respondents becoming "forever customers," followed by product quality. However, the majo
Sat, August 24, 2024
This JLR Store Creates Opportunities for Growth
Shoot us a Text. Today, Chris Reeves and Jordan Cox talk about Jack Pearson and his team from Jaguar Land Rover South Shore in Indiana. Jordan spent some recently with Jack and his team, created some stand alone episodes, as well as a short story highlighting their great operation. Jack has intentionally developed a high performing team and recently found a way to pivot to sell more used cars within their market. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, August 23, 2024
ASOTU Stranded, Trade Convos in Service, Rate Cut, and Pumpkin Spice
Shoot us a Text. It’s a great Friday to be in the car business as the ASOTU crew braves the trip home from a week of being on the ground with Dealers, OEMS, and Industry Partners at two separate events. Today we’re talking about some service lane trade data, a potential interest rate cut, and the pumpkin spice sign of the times. Show Notes with links: A new survey reveals that most dealerships aren't leveraging the service drive as a source of quality used vehicles by discussing trade-in options. 60% of mass-market customers weren't asked about their vehicle's trade-in value during their service visit and 61% for luxury customers. Only 24% of mass-market and 23% of luxury customers had trade-in conversations. Daymond John on the three ways you interact with customers: “You can acquire, upsell, or make them buy more frequently.” The Fed is widely expected to cut interest rates soon , but the big question is how much relief will come. Fed Chair Jerome Powell will address inflation and potential rate cuts in his upcoming speech at Jackson Hole today. The Fed has kept rates high since 2022 to cool inflation, but the market anticipates a rate cut in September, with a good chance for a 25-basis-point cut and a smaller chance of a 50-basis-point cut. Powell remains data-driven, cautioning against cutting rates too soon to avoid reigniting inflation. "This is not what an overheating economy looks like," says Fed's Austan Goolsbee, signaling a shift in economic conditions. The ever-divisive Pumpkin Spice Latte is back , arriving earlier than ever this year, as Starbucks released its fall menu yesterday, sparking both joy and outrage. The pumpkin spice latte has been a fall favorite since its debut in 2003, with 20 million sold annually. Social media is buzzing with both excitement and frustration over the early release. A 2022 study shows 55% of online pumpkin spice posts are positive, with 8% negative. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, August 22, 2024
Ford Tweaks EV Plans Again as EVs Break Sales Again
Shoot us a Text. We are rounding down a week of east coast travel here on the last day of the NAMAD Annual Membership Meeting. Today we are looking at Ford’s recently announced change in their EV plans and how EVs may not be slowing down as much as some sources may say. Show Notes with links: Ford is adjusting its electrification plans , canceling its long-planned three-row electric crossovers and delaying the next-generation full-size electric pickup by 18 months. The automaker will now focus on a family of hybrid three-row crossovers. Ford's changes could result in up to $1.9 billion in costs, including a $400 million noncash charge related to the cancellation of the crossover. CFO John Lawler: "We looked where the segment was evolving, the amount of competition, the customer needs, and then, the size of the battery that needs to go in a pure EV, the cost structure, the pricing, We could not put together a vehicle that met our requirements to be profitable in the first 12 months of launch." The next-gen full-size electric pickup's launch has been pushed to late 2027. Moving forward, Lawler said EVs would represent roughly 30 percent of Ford’s capital expenditure, down from a planned 40 percent. Despite talks of an EV slowdown, the U.S. market saw record-breaking sales in Q2 2024 , with 18 electric models surpassing 5,000 units sold. Tesla, Ford, and Hyundai lead, but newcomers are gaining ground. EV sales hit a record 320,463 units in Q2, up 11% from last year and 23% from Q1. The 18 models that sold 5K units: Tesla Model Y, Model 3, Model X and Cybertruck; Ford Mustang Mach-E and F-150 Lightning; Hyundai IONIQ 5; Toyota bZ4X; Rivian R1S; Cadillac Lyriq; BMW i4; Kia EV6, EV9, and Niro; Chevrolet Blazer EV; Volkswagen ID.4; Mercedes EQE; and Nissan Ariya. As we previously reported, Tesla's market share dipped below 50% for the first time, now at 49.7%, and Hyundai Motor Group (including Kia and Genesis) claimed 10% of the U.S. EV market, outperforming Ford (7.4%) and GM (6.3%) Stephanie Valdez Streaty, Cox Automotive Industry Insights Director said: “Automakers that deliver the right product at the right price and offer an excellent consumer experience will lead the way in EV adoption.” Chick-Fil-A is stepping into the entertainment arena with plans to launch its own streaming service , focusing on family-friendly content. The
Wed, August 21, 2024
LIVE from NAMAD, Rivian VP to Stellantis, Betting on Personalized Cars
Shoot us a Text. Welcome to Miami as we’re coming to you Live from the 2024 NAMAD Annual Meeting in Miami Florida where hundreds of Dealers, OEMs, and Industry Partners are talking about the current and future state of the industry. We’re also talking about the Rivian VP who is now spen to Detroit as well as Salesforce’s bet on the future of personalized vehicles. We want to thank our friends at TrueCar+ for making our coverage of the 2024 NAMAD Annual Meeting possible! Show Notes with links: Tim Fallon , Rivian's former VP of manufacturing, has been appointed Stellantis' new head of North American manufacturing, bringing critical EV expertise to the automaker. Fallon served as Rivian's manufacturing VP for two years and spent 16 years at Nissan. His arrival comes as Stellantis prepares to launch several key EVs, including the Jeep Wagoneer S, Ram 1500 REV, and Dodge Charger EV Stellantis has been facing manufacturing challenges, particularly with quality control at its U.S. plants. Carlos Zarlenga, Stellantis' North America COO, expressed confidence in Fallon, saying, "Tim's passion and collaborative spirit will lead the team to deliver the highest quality vehicles for our customers.” Salesforce has unveiled a powerful new application that lets automakers harness telematics data, offering a personalized driver experience while managing vehicle performance remotely. The app allows service teams to remotely monitor vehicle performance, lock doors, and control cabin temperature during service appointments and integrates with infotainment systems to support in-vehicle payments, service reminders and more. Automakers like Mercedes-Benz and Toyota are already using Salesforce's Automotive Cloud. The application promises to make in-vehicle purchases a reality, potentially creating a new revenue stream for automakers. In-car subscription services is currently about a $6 billion dollar industry, but projected to hit $200B by 2030 "Personalization leads to people saying, 'There's value here, and this is why I'm willing to pay for it,'" said Achyut Jajoo, Salesforce's senior vice president of manufacturing and automotive. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: <a href='https://www.asotu.com/media/p
Tue, August 20, 2024
$99 Corollas, Plinko and More, Car Insurance Through The Roof, Live From Amplify 24
Shoot us a Text. It’s a travel Tuesday as we head to Virginia for the Reynolds Retail Summit and then Florida for the NAMAD Conference. Today we’re talking about the buzz our friends at Rohrman Toyota are making with creative marketing campaigns, why car insurance premiums keep going up and check in at Amplify 2024 with Kyle Mountsier and Reynolds CMO Greg Uland. Announcement New Auto Collabs episode - Changing the Culture Through An Employee Stock Ownership Plan with Bethany Sobczak, Corporate HR Director at Fitzgerald Auto Mall Automotive Amplifiers Aug- NAMAD Aug - VeeCon - Vincue Unleashed Sept - ATAE Comms Nov Show Notes with links: Bob Rohrman Toyota in Lafayette, Indiana, is shaking up car sales with creative and fun promotions that attract customers and boost employee morale. Zac Kinch, Rohrman Toyota’s GM, has created marketing campaigns for customers to engage in fun activities like dunk tanks, mechanical bull rides, and Plinko games for discounts and prizes. These events, like offering a $99 Corolla during Black Friday, lead to significant sales increases, with one event selling 34 vehicles in a day. The engaging atmosphere has created higher employee retention, doubling the average tenure of sales staff from 3.1 years to 6.6 years. Event videos are widely shared on social media, with some videos reaching over a million views “Buying a car shouldn’t have to be miserable," says Kinch, emphasizing the positive impact on both staff and customers. Auto insurance rates have risen 15% in the first half of 2024 to average annual premium of $2,329, with predictions indicating a 22% total increase by year-end. Maryland holds the highest average rate at $3,400 annually, while New Hampshire is the lowest at $1,000. States like California, Missouri, and Minnesota could see increases this year exceeding 50%. Repair costs, particularly for ADAS-equipped vehicles, are a major driver, with repairs costing up to 38% more over the past five years. The rising rates are due to a combination of significant underwriting losses, increasing vehicle repair costs, and the growing impact of severe weather events. Additional factors like aging vehicles, legislative changes, higher theft rates, and economic pressures are further driving up premiums. "As we experience tornadoes, hail, and flooding in places where they weren't necessarily a major threat before, the increased frequency and severity of these events will need to be considered in pricing," said Betsy Stella, VP o
Mon, August 19, 2024
Dealership Profits Declining, Keeping Healthcare Costs Low, Cyber-Casket
Shoot us a Text. It’s a busy week around the ASOTU-verse as we’ve got people traveling in all different directions. Today, we’re talking about a new study showing a significant drop in dealership profitability, look at how Carter Myers is ahead of the curve on employee healthcare, and look inside a casket that feels like a Cybertruck. Show Notes with links: U.S. franchised dealerships experienced a significant 33.4% drop in average pretax profit during the first half of 2024, reflecting a broader trend of shrinking profitability in retail auto. According to a year over year dealership performance benchmark report from Presidio Group and NCM Associates that looked at 3900 franchised dealers, the average U.S. dealership sold 410 new vehicles (down 1.4%) and 364 used vehicles (flat from last year) in the first half of 2024. Front end gross profit per new vehicle dropped 32.9% to $2,408, used vehicle profit fell 22.9% to $1,404, with total revenue per store down 3.4% to $40 million. This marks a 50% reduction from peak profitability in 2021. Variable gross profit has fallen 32% since 2022, while personnel expenses only dropped 6%. Overall dealer sentiment is positive with over half of the survey dealers expecting profits to rise in the next 12 months. "We're surprised that the typical dealership hasn't adjusted its spending and variable costs as quickly and appropriately as it should have given the decline in profitability over the last two years," George Karolis, president of Presidio Group, said in a statement. "This is a time when dealers must be nimble and adjust quickly to the industry's changing circumstances, and many of them have not." Carter Myers Automotive in Virginia , widely known for their ESOP, has found a novel way to manage escalating health care costs by adopting a self-funded insurance plan, with potential premium holidays if year-end surpluses are achieved. Employees are encouraged to make cost-effective health care choices, with any savings going back to offset future premiums. CMA experienced no premium increases for the first two years and provided two premium holidays, each lasting about 3 months, an average savings of $900/household Focus groups and surveys helped shape the plan, ensuring buy-in from employees. Liza Borches, CEO of CMA shared, “The benefit of an ESOP is that you share the responsibility. As we were looking at some of our benefit plans, we said, 'How do we apply the same philosophy to other areas of our business?' "
Sat, August 17, 2024
Vans Fixed and Vans Given... Because Auto Dealers Care
Shoot us a Text. Today on the show, Paul, Chris and Nathan talk about dealers giving back. First we have a story about how Fiesta Subaru came alongside one of their community members after a wildfire damaged her van. Then, Mercy Education Project in Detroit, a nonprofit dedicated to helping women and children, had its van stolen . When Lithia and Driveway found out, they stepped up to donate a new van back to the project. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, August 16, 2024
Hybrid Tech, BMW Subscriptions, Data Breach, and Gen Z
Shoot us a Text. It’s finally Friday as we cover how European plug-in hybrid technology may guide US regulations, BMW is at it again charging monthly for physical hardware, we cover the data breach affecting BILLIONS, and how Gen Z feels more detached than ever. Show Notes with links: European regulations are driving the development of plug-in hybrids with significantly longer electric ranges, offering a glimpse of what might be coming to the U.S. Some European plug-in hybrids now offer electric ranges of up to 84 miles, more than double what’s currently available in the U.S. In comparison, U.S. plug-in hybrids like the Toyota Prius Prime max out at 45 miles of electric range, with most models offering between 25-35 miles. California's regulation changes will drive similar advancements in the U.S., requiring plug-in hybrids to achieve a minimum range of 43 miles by 2028 and 70 miles after that. BMW is once again sparking debate with its decision to charge U.S. customers to unlock features that are already physically installed in their vehicles. BMW is requiring payments to activate Adaptive Suspension on vehicles where it wasn’t selected at purchase, despite the hardware being pre-installed. Customers can either subscribe monthly or yearly or pay a one-time $500 fee to activate the feature. A shocking data breach has exposed the personal information of billions, with serious implications for those affected. Over 2.9 billion records, including Social Security numbers, were allegedly stolen from National Public Data (NPD), a Florida-based background-check company. The breach is attributed to the USDod group, which claims to have stolen the data and is offering it for sale on the dark web for $3.5 million. While NPD has not officially confirmed the breach, it has acknowledged receiving inquiries and is investigating the claims. Multiple class-action lawsuits have been filed against NPD for failing to protect personal data, and individuals affected are encouraged to seek legal advice. Employee disengagement is on the rise , and experts are warning of a looming "Great Detachment," particularly among Ge
Thu, August 15, 2024
Lots of Cars On the Lot, Holman Invests in FM Capital, American Made Polestars, Waymo Lofi
Shoot us a Text. It’s a busy Thursday as we dig into Cox Auto’s data from July, talk about Holman buying a stake in FM Capital, discuss Polestar producing vehicles on US soil and relax while watching Waymos trying to get out of a parking lot set to lofi beats. Show Notes with links: The U.S. auto market in July 2024 saw a decline in average transaction prices (ATP) for new vehicles, down to $48,401, with inventory levels increasing 52% YoY to 2.91 million vehicles, in data from Cox Automotive. Average incentives reached 7.0% of ATP ($3,383), the highest in over three years. The top 2 best-selling vehicles in July were the Ford F-series and the Chevrolet Silverado, with full size trucks accounting for 14% of July Sales. Compact and Subcompact SUVs represented 25% of July's sales. Fun fact: Cox Automotive shouted out Mohawk Chevrolet in their report, saying “the Chevrolet Rado will possibly replace [the Silverado] in model year 2026.” EVs experienced price adjustments with a unique twist, particularly for Tesla. Overall EV Prices decreased by 1.5% year-over-year to $56,520. Tesla bucked the trend with an 11% ATP increase, reaching $59,593, driven by the Cybertruck's high price of over $100,000. Holman, a global leader in automotive services, has acquired a minority interest in FM Capital , a venture capital firm focused on early-to-mid stage technology companies in the automotive and transportation industries. This is the first time an integrated automotive services organization has acquired a general partner interest in an automotive VC. FM Capital specializes in transportation technologies, including dealership operations, autonomy, and electrification. Holman's venture capital arm strategically invests in early-stage businesses to stay ahead of industry trends. Polestar is gearing up for significant growth in the U.S ., expanding its retail network to support a broader lineup that will triple in size this year. The EV brand plans to add 20 stores to its current 27-store network by the end of 2025. New models include the Polestar 3 and Polestar 4, with two more nameplates planned within the next two years. Residents near a Waymo robotaxi depot in San Francisco are being woken up by the cars h
Wed, August 14, 2024
Fain Files Against Trump-Musk, Auto Credit Tightens, AI Becoming A Turn-Off
Shoot us a Text. Welcome to Wednesday as we are talking about the return of the Fain to the headlines in response to the Trump-Musk live conversation on X. We also talk about the tightening of the auto credit belt, as well as a shifting consumer sentiment to the use of ‘AI’ in products. The UAW has filed federal labor charges against former President Donald Trump and Tesla CEO Elon Musk, accusing them of implied threatening actions against striking workers. Trump suggested that employers could handle striking workers by simply firing them all. He described a scenario where, in response to a strike, the employer would tell the workers, "That’s OK, you’re all gone," implying that all striking workers would be dismissed. Musk, while not directly quoted in the charges, has a history of anti-union sentiments, further fueling the union's concerns. Under federal law, employees conducting lawful strikes for economic reasons, such as higher wages, can’t be discharged by their employers. The charges aim to highlight the UAW’s stance that Trump and Musk oppose workers' rights, and are unlikely to have any practical impact. UAW President Shawn Fain stated, "When we say Trump stands against everything our union stands for, this is what we mean." We love our daily email and today it highlighted some recent Cox Auto Data: Auto credit availability has been tightening for four consecutive months, creating challenges for dealers as customers find it increasingly difficult to secure loans, especially for used vehicles. The Dealertrack Credit Availability Index dropped to 92.9 in July, down 1.0% from June and 1.5% year-over-year, and used car loans through franchised dealers are seeing the most significant tightening. Banks are leading the way in tightening credit, marking the fifth consecutive month of stricter lending. The spread between these auto loan interest rates and other investments has widened, making loans less appealing to customers. Additionally, more buyers are dealing with negative equity, adding further risk for lenders. A recent study reveals that the term "artificial intelligence" in marketing is increasingly a red flag for consumers, suggesting a growing skepticism towards AI-powered products. The study surveyed 1,000 U.S. adults, finding that AI
Tue, August 13, 2024
Car-less Olympics, Kia’s Theft Fix Works, Workers Feeling Stuck
Shoot us a Text. It’s a great Tuesday to sell some cars as we talk about LA’s announcement of a car-less Olympics (oh the irony). We also talk about the effectiveness of Kia’s fix for rampant thefts, as well as the large group of workers feeling stuck. Los Angeles, a city synonymous with car culture, is casting it’s vision for the 2028 Olympic Games to be a " no-car Games ." Mayor Karen Bass has announced plans to rely on public transportation instead of private vehicles, challenging the city's deeply ingrained car dependency. The city is advancing "Twenty-eight by '28," aiming to complete 28 transit projects by 2028, funded by voter-approved sales taxes. Bass is urging local businesses to adopt remote work and flexible hours during the Games to help reduce traffic. The plan includes bringing in 3,000 buses from around the country to bolster the city’s public transportation system. Mayor Bass stated, "We’re already working to create jobs by expanding our public transportation system in order for us to have a no-car games." A recent study by the Highway Loss Data Institute revealed that the anti-theft software upgrade developed by Kia and Hyundai has been highly effective, reducing theft claim rates by 53% for eligible vehicles. This comes after a surge in thefts following viral videos showing how to hotwire certain models lacking immobilizers. Kia and Hyundai vehicles from 2011-22 were targeted after a viral video exposed a security flaw. The software upgrade, offered in February 2023, extends the alarm duration and requires the key to be in the ignition to start the vehicle. Vehicles that received the upgrade showed a 64% drop in whole vehicle theft. Both companies have distributed over a million upgrades and provided steering wheel locks for ineligible vehicles. A $200 million settlement was reached for affected owners, though it has yet to be approved by the judge. "We're encouraged that theft rates in key cities have fallen significantly as more vehicle owners and lessees receive the free software upgrade," said a Kia spokesperson. American workers are increasingly feeling "stuck" in their jobs as fears of a potential recession loom. This has led to a significant drop in the rate at which employees are quitting,
Mon, August 12, 2024
Are Dealers The Holdup To Selling EVs?, Fake V8 Exhaust, Charging Connector Combo Pack
Shoot us a Text. It’s a new week in the retail auto industry, and that means its time to love some people more than cars. Today we’re discussing a survey that suggests dealers are not excited about selling EVs, the new Dodge Charger exhaust sound system, and how ChargePoint is combining all the charging connectors into one. Steve Greenfield made a post about the new Dodge Charger’s fake exhaust sounds and it sparked quite the debate. Dodge's new electric Charger Daytona is all about maintaining the classic muscle car vibes that its customers love. Even with an electric engine, Dodge wants to ensure the car sounds like it has a roaring V8 under the hood, and they've introduced the Fratzonic Chambered Exhaust system to make it happen. Steve Greenfield’s post: “I literally don't know how to feel about this. Part of me wants to be really excited, and part of me wants to be repugnated. But maybe that's the goal?” The system is designed to mimic the sound of a traditional V8 engine, even though the car is fully electric. It uses a combination of high-tech transducers, passive radiators, and amplifiers to create its signature sound. The sound adjusts with driving conditions, getting louder with throttle input and varying based on the car's driving mode. As EV sales show inconsistency across brands, a new study reveals that dealer enthusiasm may be a key factor. A survey of 250 dealership leaders across the U.S. shows a surprising lack of excitement among sales teams, which may be influencing EV adoption rates. 49% of surveyed dealers say their sales teams are "not excited at all" about selling EVs with enthusiasm highest in the Pacific region, including California, but even there, few are "very excited." Dealers in rural areas and colder climates cite charging infrastructure and winter range issues as major concerns. Areas with better EV training show higher enthusiasm, suggesting that education could boost sales interest. The study highlights the industry's struggle to adapt its traditional sales models to the demands of the EV market. <a href='https://electrifynews.com/news/ev-chargers/say-goodbye-to-ev-charging-ha
Sat, August 10, 2024
A Dealer's Birthday Party Raised How Much Money?
Shoot us a Text. Employees of the 16-dealership Wilson Automotive Group in Orange County, CA, have donated an impressive amount to various charities this year. Find out how much on today's show. This annual donation is made in lieu of giving their boss, David Wilson, a birthday and Christmas gift, reflecting their generous spirit and community-minded values. Current recipients include Orangewood, Olivecrest, Lakers Youth Foundation, United Cerebral Palsy, and the American Cancer Society. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, August 09, 2024
Fain vs Trump, Who Actually Wants a Cybertruck?, Rivian & Lucid, Generational Sock Insights
Shoot us a Text. We’ve got that little something extra to help you through your Friday, as we’re talking about Rivian and Lucid’s Q2 struggles (did someone say dealer network?), Tesla’s Cybertruck struggles, Shawn Fain vs Donald Trump and a little fun to launch you into the weekend with some sock anecdotes. Rivian and Lucid continue to face significant financial challenges in Q2, despite receiving major investments. Both EV makers report substantial losses, raising concerns about their future sustainability amid competitive pressure from Tesla. Rivian lost $32,705 per vehicle delivered and reported a $1.46 billion net loss in Q2, a 21% increase from last year, despite a 9% rise in vehicle sales. Lucid lost a whopping $112,688 and posted a $790 million net loss in Q2,. Despite record sales of its Air sedan, the company’s financial performance remains deeply concerning. Tesla's Cybertruck has been a subject of fascination and debate since its unveiling, with over 1 million reservations in the bag. However, the reality of converting those reservations into sales is proving to be more challenging. Tesla lowered the deposit requirement to $100, raising concerns about the seriousness of these reservations. The "Foundation Series" Cybertruck is currently being sold at $100,000, bundling all options together. Reports indicate Tesla is struggling to find buyers for these high-priced trucks, even reaching out to recent reservation holders In a heated exchange of words, UAW President Shawn Fain takes aim at Donald Trump, calling him a "scab" who "doesn't know sh*t about the auto industry." Meanwhile, Trump has seemingly shifted his stance on electric vehicles after Elon Musk's endorsement. UAW President Shawn Fain publicly denounced Trump at a speech in Detroit, calling him a “scab” and accusing him of being clueless about the auto industry. At a weekend rally, Trump admits he supports electric vehicles because “"I'm for electric cars. I have to be, because Elon endorsed me very strongly. So I have no choice," Trump also noted that he supports electric vehicles "for a small slice." He went on to add: "You want to have gas-propelled cars, you want to have hybrids, you want to have every kind of a car imaginable."
Thu, August 08, 2024
Popping “Tires”, Buying A Phone Is As Bad As Buying A Car, Google Analytics Can’t Quantify Love
Shoot us a Text. It's Thursday, and we’re taking a break from the normal news cycle to look around LinkedIn a little and highlight some of the best conversations we’re seeing. Show Notes with links Shout outs to our community Steve Greenfield making moves at 5:00AM Alex Lawrence and George Saliba - always a powerhouse connection The West Herr Auto Group hosted a private concert with Carrie Underwood for their entire team. In response to Netflix’s new series “Tires,” Ryan Rohrman, CEO of Rohrman Automotive Group, addressed the outdated stereotypes it perpetuates about car dealerships and auto shops, saying “This portrayal is not only inaccurate but also fails to acknowledge the significant strides we have made in recent years." The show depicts an unqualified heir trying to revamp a family-owned auto shop, filled with clichés such as upselling, unprofessional behavior, and creating uncomfortable environments for customers. "The reality is far different today," Rohrman emphasized. "Our industry now features state-of-the-art facilities, cutting-edge innovations, and a customer-first experience that prioritizes comfort and transparency." Rohrman’s dealerships offer amenities like golf simulators, workout areas, movie theaters, and children’s indoor playgrounds. "As CEO, my mission is to build on our 60-year legacy while reimagining the experience for our employees and customers alike," Rohrman added. "We are creating a culture that is supportive, inclusive, and innovative." "We are proving that progress and legacy can drive hand in hand, reshaping our industry’s reputation for the better." Comment by Alex Vetter, Director and CEO of Cars.com “10M reviews a year, and only ~1% of them are negative.” The Rohrman organization took all of their 1000+ employees and family members to Six Flags Great America on Sunday. Paul J Daly shares a <a href='https:
Wed, August 07, 2024
Barra on TikTok, Uptimes on Chargers, and Elon on the Move
Shoot us a Text. Wednesday is rockin’ and we are covering the east and west coast this morning. On the east coast we track down our friends Mohawk Chevrolet hanging at GM headquarters and on the west coast everyone is trying to figure out where Elon is going…again. We will take a stop by an EV charger study along the way. Show Notes with links Mohawk Chevrolet’s TikTok series , 'The Dealership,' has garnered attention with a comedic twist, featuring GM's top brass including CEO Mary Barra. Mohawk Chevrolet’s series, "The Dealership," parodies “The Office” with episode 11 features co-creator Grace Kerber pitching a rebrand of the Silverado to GM execs. Kerber humorously suggests shortening the Silverado's name to “Rado.” Mary Barra makes a cameo, endorsing the rebrand idea. The series highlights the power of creative, low-budget content, drawing over 300,000 views on TikTok in the first 24 hours. “We were so honored to be invited by Chevrolet to visit GM headquarters,” said Kerber. “Meeting Mary was such a cool experience, she was so kind and fun to shoot with.” A new study uncovers significant gaps between reported and actual uptimes of EV chargers , shedding light on reliability issues and potential solutions for public charging infrastructure. ChargerHelp’s report analyzed over 19 million data points to assess EV charging reliability. Actual uptime is frequently lower than reported uptime, eroding driver confidence. Older charging stations and those in long-established states show higher downtime rates. Reliability varies widely across 20 different charging networks, with some networks having 10-20% downtime. Major downtime causes include component failures, communication issues, and payment system malfunctions. Professor Gil Tal, Director of the Electric Vehicle Research Center at UC Davis, shared "the discrepancy between reported and actual uptime is a major challenge. Accurate data and local technician support are essential for improving reliability.” Elon Musk is closing X's San Francisco headquarters , marking the end of an era for the company formerly known as Twitter. The move will impact many employees as the company transitions to new Bay Area locations. The San Francisco office will close “over the next few weeks,” according to an email from CEO Linda Yaccarino. Employees will transition to existing offices in San Jose or a new engineering-focused space with xAI in Palo Alto. X
Tue, August 06, 2024
CDK Outage Costs Sonic $22M, A Van For A Paralyzed Shooting Victim, Gen Z Buying Homes
Shoot us a Text. Tuesday’s here, and we’re rolling through the morning talking about Sonic’s Q2 income growth, Sutherlin Auto donating a custom van to a paralyzed shooting victim, and the surprising fact about Gen Z and home ownership. Show Notes with links Sonic Automotive Inc. experienced a remarkable 76% YoY increase in second-quarter net income , hitting $41.2M, nearly doubling from $23.4M despite setbacks from a cyberattack and a system outage in June. The group sold 27,026 new vehicles (down 3.3%), 25,668 used vehicles at franchise stores (up 1.9%), and 16,641 used vehicles at EchoPark stores (down 2.6%) in Q2. Sonic estimated the CDK software outage cut net income by $22.2 million, with $11.6 million in pretax charges for extra employee compensation. Other charges included $3.6 million for hail and storm damage, $1.4 million impairment for EchoPark locations. In March, Sonic launched an initiative to add 300 technicians in 2024, aiming to boost annual fixed-ops gross profit by $100 million, and so far have netted 131 techs in Q2. Toyota of Montgomery of Sutherlin Automotive Group donated a wheelchair accessible van to Amy Dicks , an innocent bystander who was paralyzed after being caught in a highway shootout back in April of this year. Amy Dicks was struck by a bullet while driving to work, paralyzing her from the chest down. The donation was made on August 5 as she returned home from months of rehabilitation and the van aims to help Dicks regain mobility and independence. Brett Sutherlin, CEO of Sutherlin Automotive Group, visited Amy in the hospital and expressed deep admiration for her resilience and emphasized the importance of the support. "Providing her with this accessible van is a small gesture to help someone who has faced such tremendous adversity. After meeting her and understanding her situation, it became clear how vital this support is." Sutherlin stated. Gen Z is buying homes at a faster rate than older generations, particularly in the Midwest, with the highest purchase rates in Indianapolis, St. Louis, and Cincinnati, and the lowest in California and the Northeast. Nearly 28% of 24-year-olds owned a home in 2023, surpassing millennials and Gen X at that age, and almost 40% of new mortgages in 2023 went to buyers under 35. <l
Mon, August 05, 2024
How Dealers Use Data, A Mixed Recovery, Higher Prices = Higher Quality
Shoot us a Text. It’s a new week, and we’ll be on the ground in dealerships in New York and Indiana today. We’re talking about how dealers are using data to make decisions, what the second half of the year looks like for dealers, and how consumers are dealing with higher prices. Cox Auto's Power of Data Study was conducted in late 2023 and early 2024 and takes a close look at how U.S. auto dealers are using data to run their dealerships, make decisions, and boost customer value. Nearly all dealers use Customer/Lead Data (96%), Vehicle Data (94%), and Dealership Data (96%). Over 80% of dealers see the upside of using data. They mention things like more accurate forecasting, better trend monitoring, higher revenue, and increased efficiency. However, confidence levels vary. While 72% trust their in-house data, only 66% trust third-party data. Most OEM and third-party data runs on 30, 60, or 90-day trends, which isn’t always helpful for day-to-day decision-making. Data privacy and compliance are major worries. About 66% of dealers are concerned about ensuring data privacy, and 44% have held off on adopting new tools because of these fears. The top goals for using data are to increase revenue, improve customer experiences, and enhance internal operations. This includes everything from tracking employee performance to managing inventory more effectively. The automotive market is experiencing a mixed recovery as high interest rates and pricing concerns temper sales growth in the latter half of 2024. U.S. light-vehicle sales in July were estimated at 1.3 million, down 0.4% year-over-year, with variations in estimates by GlobalData and Cox Automotive. The seasonally adjusted annualized rate of sales rose to 16.1 million units, up from June's 15.3 million units. Automakers reporting monthly sales showed mixed results: Mazda, Subaru, Hyundai, and Honda posted gains, while Toyota, Ford, Kia, and Volvo saw declines. Fleet sales dropped 33% year-over-year, impacting overall sales. Inventory levels rose by 49% compared to July 2023, but the growth is expected to slow in the second half of the year. "July's performance was disappointing, suggesting that the market could be losing a littl
Sat, August 03, 2024
Dealers Taking Care of Your Little Ones With A Car Seat Safety Check
Shoot us a Text. Today on the Saturday show with head writer Chris Reeves, we're offering counter vibes to the poor perception around car dealers. We talk about Gary Rome Hyundai's Car Seat Safety Check that felt more like a party. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, August 02, 2024
GMs Carrot On A Stick, Brave or Stupid Salesman, Sued By Own Shareholders
Shoot us a Text. How are you rating your employees' performance? On this Friday, we dig into GM’s new employee evaluation, ask whether a salesman was right in trying to stop a test drive burglary and discuss the latest fallout from the CrowdStrike outages. Show Notes with links GM is revamping its U.S. salaried employee performance ratings to reward top performers more generously and pressure low performers to improve or leave. Under the new system, the top 5% of employees now receive 150% bonuses, surpassing previous rewards. An internal memo says that “To ensure GM has the talent needed to achieve our ambitious goals, a more intentional process is required that sets clear expectations for performance and holds people accountable,” Employees are now rated on a five scale evaluation: Significantly Exceeds Expectations, Exceeds Expectations, Achieves Expectations, Partially Meets Expectations, Does Not Meet Expectations GM believes that approximately 70% of its employees will fall into the "achieves expectations" category under the new performance rating system, receiving 100% of their target bonuses. The company estimates that about 5% will be rated as "does not meet expectations," facing potential "appropriate action," including possible exit from the company. Similar adjustments are being made by other automakers like Ford to stay competitive against EV-focused companies like Tesla and Rivian. A New Orleans man was arrested after attempting to steal an Audi during a test drive on July 30 in Metairie, Louisiana. The suspect, Reginald Vaughn, encountered unexpected resistance from a dealership employee. The car thief, Reginald Vaughn stopped the Audi abruptly during the test drive and threatened the dealership employee with a firearm, demanding they exit the vehicle. After a short struggle while the car was being driven, the employee managed to put the car in park. Vaughn fled the scene but was later arrested at a nearby urgent care facility where authorities discovered he was currently on probation for burglarizing vehicles CrowdStrike is being sued by its shareholders for a global software outage on July 19 that crashed over 8 million computers worldwide, claiming that CrowdStrike misled investors about the adequacy of its software testing. The lawsuit claims CrowdStrike failed to disclose deficient update controls and inadequate software testing, which created a substantial risk of major outages and ultima
Thu, August 01, 2024
Dealer Relevance Survey, BYD + Uber, Mach-E Fast Mode
Shoot us a Text. It's the first day of a new month and we’re kicking it off by diving into a new survey on the public’s perception of dealerships. Plus BYD and Uber are teaming up around the world and Ford just made its Mach-E go faster. Urban Science and The Harris Poll have released the 2024 Urban Science Dealership Transformation Index™ (DTI), with the DTI score improving to 56, nearing the strong range (65-74). The DTI score is derived from an average of three key dimensions: dealer relevance, trend resistance, and actions. These dimensions capture how buyers perceive dealer roles, their openness to new automotive trends, and their behaviors regarding vehicle purchases. The dealer relevance score increased to 62, with 43% of auto buyers agreeing dealers are crucial, up 4 points, 42% finding current dealership tools effective, up 8 points and 38% feel dealerships are optimized for the future, up 11 points. Trend resistance decreased with 33% open to online vehicle purchases, up 3 points and 20% seeing personal vehicle ownership as less important, up 4 points. Actions saw slight improvement as 48% plan to submit online quotes and 91% being open to purchasing in person at the dealership. An incentive of as little as $35 caused a majority of auto buyers to be somewhat or extremely motivated to visit a dealership for service, test drives, etc. The survey was conducted among 3,005 U.S. adults aged 18+ and 250 U.S. OEM automotive dealers, Sales Managers, General Managers, or Principal/VP/Owners. Our writers Chris and Kristi did a write up of more of the findings, check out the LinkedIn Newsletter . Tesla's rival, BYD, has announced a significant partnership with Uber , aiming to provide Uber drivers with discounted electric vehicles. BYD and Uber's partnership includes a discount on 100,000 electric vehicles for Uber drivers with an initial roll out in Europe and Latin America along with future expansion plans for the Middle East, Canada, Australia, and New Zealand. With a growing presence in North America, BYD has already established a footprint in Mexico with their hybrid truck and EV crossovers as well as a desire to open dealerships within Canada. Ford has introduced a <a href='https://electrek.co/2024/07/31/ford-unlocks-mustang-mach-e
Wed, July 31, 2024
Carvana Defies Expectations, Mazda’s Dull Logo, Tesla Hoods Unlatched
Shoot us a Text. Its the last day of the month, and we’re wishing all of you a successful day! Today, we’re flashing back to the very first automotive ad, then bringing it back to the present state of Carvana’s continued rise, an awkward recall involving Tesla hoods and Mazda’s new logo. Show Notes with links On July 30th in 1898, the weekly journal Scientific American introduced the world's first car ad , courtesy of Cleveland’s Winton Motor Carriage Company. The ad boldly proclaimed, “Dispense with a horse and save the expense, care, and anxiety of keeping it. To run a motor carriage costs about ½ cent a mile.” This pitch marked a shift from horse-drawn carriages to the dawn of automotive travel. Alexander Winton’s brainchild promised a future of motoring convenience and ignited public curiosity, leading to a surge in orders and ultimately reshaping transportation history. Online used-vehicle retailer Carvana is expected to report a significant year-over-year increase in sales for the second quarter, with results anticipated post-market close on July 31. Carvana sold 91,878 used vehicles in Q1 2024, up 16% year-over-year. Analysts predict Q2 sales will surpass last year’s 76,530 vehicles, with a potential 3% quarter-over-quarter growth, with William Blair analyst Sharon Zackfia adjusting her Q2 sales estimate to 98,900 vehicles. Increased inventory (+15%) and site traffic (+16%) are positive indicators. BTIG analyst Marvin Fong praises Carvana’s business model, setting a share price target at $155. “While there's no way around the fact Carvana trades at a premium to most e-commerce and auto-related stocks, we believe [Carvana's] vertically integrated and in-sourced business model is simply a better mousetrap in an enormous automotive retail market that shouldn't be overlooked,” Fong noted. Tesla is recalling approximately 1,849,638 vehicles due to a software glitch affecting the hood latch assembly, impacting the 2021-2024 Model 3, Model S, Model X, and 2020-2024 Model Y. NHTSA warns the software may fail to detect an unlatched hood, potentially causing it to open and obstruct the driver’s view, increasing crash risk. Tesla has issued a free OTA software update to fix the issue without requiring physical visits to service centers. Mazda appears to be the l
Tue, July 30, 2024
Auto Headlines From 10 Yrs Ago, Fisker Owners Banding Together, Will Crowdstrike Pay Delta
Shoot us a Text. It's Tuesday and we’re hopping in an OG Delorean to look at auto industry headlines from ten years ago. Spoiler alert: It’s a lot of fun. We’re also talking about new Fisker owners banding together to keep their new Ocean’s on the road. We also talk about the brewing dispute between Delta and Crowdstrike over last week’s major business disruption. Since the news cycle in auto tends to slow down in the Summer, we thought we’d try a new segment today where we look back to industry headlines from when you had more hair, darker hair, less children, or when some of our audience was still in middle school. Let’s jump back ten years ago to see just how far we have, or haven’t come. Here are some main headlines from Automotive News at the end of July 2014: Millennials drawn to car-sharing services, but eventually, they buy: Car- and ride-sharing programs are changing the way city dwellers get around and the way millennials think about car ownership. Automakers have noticed and are experimenting with ways to adapt -- creating partnerships with car-sharing services or offering their own transportation services. Nissan expands U.S. recall of cars with defective Takata airbags Group 1 Q2 profit tumbles 55% on Brazilian problems: Stock price was around $55/share. Yesterday it closed around $338 (+614%) Fisker's Chinese owner plans 2nd model after Karma output resumes Fisker Ocean owners are rallying to keep their vehicles operational despite the company's bankruptcy. The Fisker Owners Association is at the forefront, organizing efforts to secure parts and maintain their electric SUVs. Fisker halted Ocean production in May, followed by bankruptcy in June with over 6,000 Fisker Oceans sold before the stoppage. Fisker Ocean Owners formed an association to ensure continued access to parts and software. American Lease purchased Fisker's remaining inventory, potentially aiding parts supply. Daniel Shamah, the association's attorney, emphasized, “The highest priority for us is to make sure that these vehicles... are not very expensive hunks of metal in a year.” Dealers aren’t the only ones looking for cash from a software company, as Delta Airlines is gearing up to seek compensation from cybersecurity firm CrowdStrike . This follows a major software update defect that caused a global business disruption, severely impacting Delta. Analysts estimate that Delta wil
Mon, July 29, 2024
SearchGPT Is Here, CDKs Offer To Dealers, Three Is Better Than One
Shoot us a Text. We have three days left to make the most of July as we talk about CDK’s offer to compensate Dealers from last month’s outage. We also talk about significant progress for OEM EV partnerships, as well as the entrance of SearchGPT Show Notes with links In the latest update to the CDK saga, many dealers are now frustrated by the DMS provider after it offered a one-month rebate on software fees that dealers argue doesn't cover the full extent of their incurred expenses. Dealers had to rely on overtime pay for staff, slower pen-and-paper workarounds, and temporary third-party software solutions to maintain operations during the shutdown. The outage resulted in lost vehicle sales and reduced service revenue, further compounding the financial impact. Scott Herbers, CDK's chief revenue officer, said in a statement to Automotive News, "We appreciate and value our dealership partners [and] recognize the resilience they showed by continuing to conduct business throughout the outage. My team and I have personally spoken to the dealerships, and most have been very grateful and appreciative of the compensation." However, dealers signaled dissatisfaction with Damon Lester, owner of Nissan of Bowie saying, “The amount of manpower and losses that we all incurred from the expense of having to still pay people is definitely greater than one month's invoice,"” "I would say three months would probably be closer to making up for what's happened," said Judy Farcus Serra, COO of Headquarter Automotive, echoing Rita Case’s sentiments expressed several weeks ago. Product planning in automotive has become increasingly complex. There are promised transitions to EVS, the potential upheaval of emissions regulations, upcoming US elections. Toyota, Subaru, and Mazda are leveraging their cooperative agreements to navigate these challenges together. Toyota and Subaru will launch three-row EV crossovers next year, assembled in Kentucky with batteries from Toyota's North Carolina plant, qualifying for consumer tax credits of up to $7,500. Subaru is enhancing its crossover lineup with Toyota’s hybrid technology, including the new Forester hybrid. Mazda and Toyota jointly operate a plant in Alabama, producing the Toyota Corolla Cross and Mazda CX-50. Mazda plans to add a hybrid variant of the CX-50 using Toyota’s system. The three automakers are also collaborating on advanced combustion engines, potentially delaying their full transition to EVs. Mazda has announced it will not fully launch EVs until 2028. <a h
Sat, July 27, 2024
800 Episodes In... and We're Still Learning
Shoot us a Text. Today, head writer Chris Reeves hosts the show and is joined by Paul J Daly, Kyle Mountsier and head of production Nathan Southwick to talk about what it takes to get to 800 episodes of a show and share some of their favorite memories. If you like the show, share it with a friend! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, July 26, 2024
New Prices Steady, Used Prices Down, Wet Towel Teslas, Promo Codes For All
Shoot us a Text. It’s the last weekend of the month, and we’re digging into fresh insights from the team at Cars Commerce. Plus we talk about ways to NOT charge your Tesla and how everyone’s using promo codes. Show Notes with links A new Monthly Industry Insights Report released by CARS Commerce shares internal data from the first half of the year, revealing that despite increased inventory, prices are still holding on new cars, while used is a slightly different story Average new car price was down 1.2% to $49,106, demand was down 16.9% (searches) and supply was up 13.4% (marketplace inventory). On the used side, avg prices dropped 5.4% YOY for the first half of 2024, at $28,815, while demand was down 5.5% and supply was down 3.9%. There was some relief for budget shoppers, as total vehicles priced under $30K grew 57% YoY. Vehicles prices $30K-$49K grew 31.3%, and over $50K grew 29.7% Top 10 searched new vehicles in June: 1. Ford F-150 2. Chevrolet Silverado 1500 3. RAM 1500 4. GMC Sierra 1500 5. Ford Bronco 6. Chevrolet Traverse 7. Ford Mustang 8. Toyota Tacoma 9. Jeep Wrangler 10. Chevrolet Corvette Used car prices per 1,000 odometer miles are down from $516 in 2023 to $486 in 2024. Low priced inventory increased in used cars, with supply under $20K increasing 10% YoY. $20-$29K was -5.5%, and over $30K was down over an average of 20%. Tesla is cautioning owners against using a method involving wet towels to boost Supercharger speeds , emphasizing safety concerns. Tesla drivers have been placing wet towels on Supercharger connectors, claiming it increases charge rates. X user Out of Spec reported an increase from 58 kW to 119 kW using this trick. Tesla’s Response: “Placing a wet cloth on Supercharger cable handles does not increase charging rates and interferes with temperature monitors creating risk of overheating or damage. Please refrain from doing this so our systems can run correctly, and true charging issues can be detected by our systems.” A SimplyCodes survey found that retailers issued an average of nine unique promo codes in the first six months of the year, marking a 31% YoY increase, reflecting a growing trend among retailers and consumers alike. The average discount rose to 17.6%, up from 17.17%, translating to average savings of $33.25 per promo code, up from $27.26. 89% of households earning $175,000–$199,999 used promo codes, compared to 53% of households earning $10,000–$24,999. 46% of 18–29-year-old
Thu, July 25, 2024
Ford Slips, Stellantis Drives Off A Cliff, GM EV Buybacks, Southwest Assigned Seats
Shoot us a Text. The dog days of summer are well upon us, and that means a great opportunity to love people more than cars. Today we’re talking about Ford and Stellantis’s Q2 earnings reports, GM’s early EV issues that led to buybacks, and Southwest’s shift to assigned seating. Show Notes with links Not everyone can be GM, as Ford’s income dropped 4.5% to $1.8 billion, despite a revenue increase of 6.4% to $47.8 billion, driven by strong commercial vehicle sales. Meanwhile, Stellantis’s net income plummeted 48% to €5.6 billion in the first half of 2024, with operating margins falling below 10%. Ford’s adjusted earnings before interest and taxes (EBIT) fell 27% to $2.8 billion as CFO John Lawler cited $800 million in increased warranty expenses due to older vehicle recalls. Ford Pro division shined with $2.6 billion earnings and 15.1% profit margins, while the Model e EV unit reported a $1.1 billion loss. Stellantis struggled the most in North America, including an 18% shipment decline and price pressures. CFO Natalie Knight said “There are operational issues we have had in North America where I think we could have performed stronger,” suggesting measures like output and price cuts, inventory reductions, and cost-saving initiatives to address these operational issues. GM’s Ultium vehicles have faced significant issues due to build quality and safety concerns, including fire risk, leading to buybacks and now reentry into the used market at steep discounts . Early 2023 and 2024 Chevy Blazer EVs suffered from software issues, leading to a stop sale, and the Cadillac Lyriq has had less publicized issues around problems with build quality, both leading to buybacks Vehicles reacquired by GM in this process do show “Reacquired by Manufacturer” on the vehicle history report. Models like the 2024 Chevy Blazer EV RS and Cadillac Lyriq are now available at significant discounts, sometimes over $20,000 below original MSRP making an impact in the used car market. Southwest Airlines is making significant changes by moving away from its 50 year old policy of open seating. The airline will soon introduce assigned seating and premium options with extra legroom, aiming to appeal to a broader range of passengers and enhance profitability. Extensive testing has taken place, including simulati
Wed, July 24, 2024
GM Pickup and SUV Record, Tense Tesla Earnings, Cookies To Stay
Shoot us a Text. We’ve made it to the middle of the week! Today we’re talking about GM’s record pickup and SUV sales in Q2, Tesla’s tough Q2 and how Google is not getting rid of cookies after all. Show Notes with links General Motors has raised its 2024 earnings forecast following a strong second quarter, driven by record North American sales of pickups and SUVs. CEO Mary Barra emphasized in a letter to shareholders that responsible growth and efficient capital use amid shifting market conditions. "As excited as we are about our portfolio, we are committed to growing responsibly and profitably in any demand environment," Barra said. "Over the next few years, third-party forecasters now see the EV market growing steadily, but more slowly than it did over the last few years. As a result, we are adjusting our spending plans to make sure we're capital-efficient and moving in lockstep with customers." Q2 net income rose 14% to $2.9 billion, with global revenue hitting $47.97 billion. North American profit surged 39%, setting a new record at $4.4 billion. GM adjusted its full-year EBIT guidance to $13-$15 billion, despite lowering net income forecast slightly. The company reported increased EV sales but scaled back production targets due to lower-than-expected demand. Despite slightly better-than-expected revenue, Tesla's Q2 earnings report highlighted declining profits and raised investor concerns , particularly during a tense earnings call with CEO Elon Musk. In Q2, Tesla's net income dropped 45% to $1.5 billion, down from $2.7 billion the previous year, while revenue rose to $25.5 billion, exceeding analyst estimates of $24.8 billion. The company also experienced a 4.8% decline in global deliveries to 443,956 vehicles, following an 8.5% decline in the first quarter. Musk had a elevated Q&A session as he was asked a variety of questions, most of which received short, blunt answers When asked about diverting GPUs from Tesla to xAi, Musk by stating that the news was based on an "old article." as he assured that the diversion of GPUs to xAI was "in Tesla's interest," not detrimental to the company Google no longer intends to remove third-party cookies from Chrome , a major shift from its 2020 announcement. The company will retain third-party cookies, focusing on enhancing user choice instead. Cookies are an important part of the $180 billi
Tue, July 23, 2024
Used Cars Driving Inflation Down, VinFast Dealer Advisors, Rivian’s Future Plans
Shoot us a Text. Today is Tuesday! Things are happening in the auto industry, like how lower used car prices are driving down inflation, VinFast is forming a US dealer advisory board and Rivian is pressing ahead on future plans. Show Notes with links Used car prices have plummeted over the past year, reaching their lowest level since 2021, and are now the leading category reducing inflation, according to CoPilot’s analysis of CPI data. Cox Automotive reports that the average list price for a used vehicle is now $25,251, down 7% from last year and the lowest since summer 2021. The June CPI report shows a 10.1% drop in used vehicle prices over the past year, with a 1.5% decline in the last month alone. The previous surge in used car prices was driven by a supply crunch in new vehicles. CoPilot CEO Pat Ryan explains that the supply of new vehicles has increased by about 50% since July 2023, easing pressure on the used market. “Consumers have finally found themselves with more options to buy new, rather than used,” Ryan noted. EV manufacturer VinFast is strengthening its presence in the U.S. by forming a Dealer Advisory Board to navigate the American market. VinFast aims to expand its U.S. dealership network with strategic advisory board members including David Coyle of Leith VinFast in NC, Damian Mills of VinFast Triad in NC, David Sansing, Elie Hanna, Bill Auffenberg VinFast has received 70 applications from dealers and plans to establish 125 third-party sales points by the end of 2024. David Coyle, Dealer Principal of Leith VinFast commented “This board represents a great opportunity for open communication and collaboration, ensuring VinFast remains at the forefront of the EV market.” Rivian CEO RJ Scaringe recently sat down with the Verge to cover the EV maker’s future plans, why every EV looks like a Tesla, and the joint venture with VW. Rivian announced five new models this year: R2, R3, R3X, and updated versions of R1T and R1S. The R2 is set to launch in 2026 and already has 100K pre-orders. Scaringe believes that the slowdown in EV growth is not due to a lack of demand but rather a lack of variety in available models. He believes there is significant latent demand for EVs that meet diverse consumer needs. “Because of the Model Y’s success, you have a lot of incumbents that have built products that look and feel and are shaped a lot like a Model Y.” The $5 billion joint venture with VW
Mon, July 22, 2024
GM Pushes Ahead on EVs, BP’s EV Chargers, What is Luxury?
Shoot us a Text. It’s Monday and that means we GET to work in automotive retail. Today we’re talking about GM’s adjusted EV plans, BP’s investment into EV charging and what it means to be “luxury.” Show Notes with links General Motors is gearing up to launch a series of new electric vehicles across its Chevrolet, GMC, and Cadillac brands this year, aiming to capture a broader market despite current sales challenges. Although EV sales growth has slowed due to high prices and charging concerns, GM still aims for zero-emission light-duty vehicles by 2035. GM has already cut EV production targets by up to 50,000 units this year. The Chevrolet Equinox EV is expected in all trims this year, and is set to be GM's most affordable electric vehicle. MSRP will start at around $35,000, including shipping before the $7,500 federal tax credit. Looking ahead, GM will introduce the new-look Chevy Bolt in 2025 and plug-in hybrids in 2027. GM’s Mary Barra said "I think we all know that the growth of EVs has slowed. We never expected it to be linear." BP is partnering with Simon Property Group to install 900 electric vehicle (EV) chargers at various locations as a part of BP’s broader strategy to expand its EV charging network and support the increasing demand for electric vehicles. Last year, BP Pulse made plans to invest $1 billion in America's EV infrastructure by the end of the decade. BP Pulse has more than 33,900 EV charge points globally, the company said, and plans to have 100,000 points by 2030. This initiative supports BP's commitment to advancing sustainable energy solutions and reducing carbon emissions. Mercedes-Benz and Starbucks are also teaming up to install fast electric vehicle chargers at 100 coffee-slinging locations on Interstate 5, which runs along the West Coast from Canada to Mexico. These new stations will be part of the German automaker’s $1 billion plan to build 2,000 new EV charging hubs across the globe. A recent Morning Consult Intelligence brand tracker study highlights shifting priorities among luxury shoppers, with over 75% saying quality is more important than cost in luxury retail. 65% of consumers value exclusive access to products as part of their luxury shopping experience, and 64% believe that high price is an importa
Sat, July 20, 2024
An Act of Kindness Multiplier Starting with a Dealership
Shoot us a Text. It's a content team takeover on the show this Saturday morning, as Jordan Cox and Nathan Southwick host the show, joined by writers Chris Reeves and Kristi Canada. Today we're talking about how Anderson Ford in Lincoln, Nebraska fixed the van of Rodney Smith's Raising Men and Women non-profit which encourages young people to mow the lawns of those in need in their community. By supporting this one man, they're supporting hundreds and thousands of acts of service across the nation. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, July 19, 2024
Inflation = Repos, Ford Picks Trucks Over EVs, Green Bubble Goodbye
Shoot us a Text. As another week comes to a close, we’re grateful for the auto industry. Today we’re covering how inflation is affecting repos, how demand is affecting Ford’s production plans and how iPhones and Androids might finally get along. Show Notes with links Auto repossessions are up 23% in the first half of 2024, surpassing pre-pandemic levels and indicating financial stress among consumers as interest rates and inflation strain household budgets. Vehicle seizures decreased during the pandemic due to leniency and stimulus checks, but have now surged back, with repos increasing 14% compared to 2019. Subprime auto borrowers are struggling, with 5.62% at least 60 days late on payments in June. Average interest rates: 7.3% for new cars, 11.5% for used cars; monthly payments average $739 for new and $549 for used, according to Edmunds Relief might come later this year, with some anticipating the Fed lowering interest rates in September, allowing the opportunity for refinancing and new buyers. Jeremy Robb, senior director of economic and industry insights at Cox Automotive summed it up: “I think a lot of consumers are really waiting to see if interest rates come down a little. That’s kept a lot of people on the sidelines.” Ford Motor Company again has slowed down its EV plans, repurposing its Canadian Oakville Assembly plant to build larger gasoline-powered F-Series trucks , delaying the launch of three-row electric SUVs. The Oakville facility will now add capacity for 100,000 F-Series Super Duty trucks. “Super Duty is a vital tool for businesses and people around the world, and, even with our Kentucky Truck Plant and Ohio Assembly Plant running flat out, we can’t meet the demand,” said Ford CEO Jim Farley. Ford lost nearly $4.7 billion on its EV business in 2023, with projected losses up to $5.5 billion this year. The company plans to invest about $3 billion to expand Super Duty production, securing 1,800 jobs at Oakville and adding about 220 jobs at engine and component plants. Apple's iOS 18 finally brings RCS support to iPhones , significantly improving messaging between iPhone and Android users. Photos are now high-resolution, ending the era of blurry, tiny images. iOS 18, currently in Beta but available on iPhone, includes homescreen customization, Siri improvements, and revamped Photos app. Apple added RCS (Rich Communication Services)
Thu, July 18, 2024
Toyota’s Last Olympic Hurrah? Chinese Car Software Ban? Gen-Z Works In Healthcare?
Shoot us a Text. There’s less than 2 weeks left in July, and we’re already thinking about Toyota’s upcoming presence at the Olympics. Plus, we discuss if the US is poised to ban Chinese software in cars and the surprising places Gen-Z wants to work. Show Notes with links As the 2024 Paris Olympics are set to begin next Friday, Toyota is set to deploy 2,650 electric and fuel cell vehicles and 50 electric scooters to transport athletes, officials, volunteers, and spectators In what may be their last year as exclusive mobility sponsor, Toyota will showcase 10 different applications of hydrogen fuel technology, including leasing hydrogen-powered city buses to Paris and supplying retrofitted coaches for Toyota's hospitality services. Over 1,000 Mirai hydrogen-powered vehicles will be used, with 500 for the official Paris 2024 Fleet. The Toyota Crown FCEV will be the marathon car, and a prototype FCEV Hilux will support equestrian events. This may be Toyota's final year under the $835 million deal with the IOC as reports indicate Toyota's dissatisfaction with how its funds were used by the IOC. More than 3 billion people tuned in to watch the 2020 Tokyo Olympics and viewership is expected to be higher in 2024. The U.S. Commerce Department will propose new rules on connected vehicles next month, targeting software from China and other adversarial nations. New rules focus on key vehicle components and software management with an aim to ensure critical software is sourced from allied countries. Export Controls Chief Alan Estevez emphasized the security risks posed by foreign software in cars along with others hinting that the Biden animistation could take extreme action. The Chinese foreign ministry argues U.S. actions violate market principles stating Chinese manufactured vehicles are born in a fierce competitive market touting strong tech innovation. The Biden administration has proposed sharp hikes in tariffs on Chinese electric vehicles and other goods that they expect to be in place by Aug. 1. Estevez stated, “A modern car has a lot of software in it. It's taking lots of pictures. It has a drive system. It's connected to your phone. It knows who you call. It knows where you go. It knows a lot about you. Gen Z’s career aspirations are changing, with tech giants losing their allure . A National Society of High School Scholars survey of over 10,000 Gen Zers reveals the evolv
Wed, July 17, 2024
Selling Cars During Hurricanes, Auction EV Surprise, Robot Auto Assembly
Shoot us a Text. Welcome to Wednesday! Paul’s in Moscow (not Russia), Kyle’s in Nashville as we talk about coastal dealers’ facing skyrocketing insurance premiums. We also talk about EV’s topping the Manheim auction charts, as well as humanoid robots spotted at a BMW plant…working. Show Notes with links Coastal automotive dealers are facing skyrocketing insurance costs which have nearly doubled due to higher frequency and severity of storms, with wind coverage charges tripling in some areas from Miami to Galveston, Texas. Troy Duhon, friend of ASOTU and owner of Premier Automotive in New Orleans, formed his own insurance company, Prestige Insurance, to provide wind and hail damage coverage for his dealerships. He also installed generators in each of his stores. Chris Poulos, owner of West Point Lincoln in Houston, focuses on securing lot items and relocating vehicles to protected areas, but knows that high deductibles often hinder how much insurance can help. “In incidences [similar to Beryl], insurance — unless you sustain significant damage with significant flooding — is not going to really help you offset any of the cost involved in getting up and running." Tom and Anita Castriota, owners of Castriota Chevrolet in Hudson, Florida, are able to move hundreds of vehicles to 10 acres of higher ground behind their dealership and have installed windows that can withstand 140mph winds. Ted Smith, president of FADA, says that this time of year, pushing out information to help dealers minimize risk becomes a huge focus. “Standard operating procedure in Florida is to be ready, to take every storm very seriously and, most importantly, protect lives — but protect the inventory, as well.” For the first time ever, an EV topped the monthly best-seller list for Manheim . In June, the 2023 Tesla Model 3 was Manheim's No. 1 seller and the 2023 Chevrolet Bolt ranked as No. 3. The top 5 best-selling EVs at all auctions according to AuctionNet were; 2021 Tesla Model Y, 2023 Model 3, 2021 Model 3, 2023 Chevy Bolt, 2021 Model 3 (maybe a trim difference?) This milestone reflects the growing presence of EVs in the wholesale market. Manheim saw over 21,000 EV sales in Q2, marking a 108% YoY growth and in the first half of 2024, EV sales are up 97% with over half sold units (57%) are Teslas "Electrics command a 2.1% share of Manheim sales, up from 1% a year ago," said Jeremy Robb, Cox Automotive. Robotics startup Figure released a video last week showing its <a href='https://ww
Tue, July 16, 2024
CDK Hack Costs Dealers $1B, GM To Miss EV Target, Prime Day Hype
Shoot us a Text. It’s Tuesday. That is all. Today, we’re talking about a new report that shows the CDK hack resulted in $1B in losses, how GM is pulling back from its EV target and what other retailers are doing to take advantage of Amazon Prime Day Show Notes with links Dealerships across the nation are reeling after a devastating cyberattack on CDK Global resulted in $1.02 billion in losses , as reported by the Anderson Economic Group (AEG). Between June 19 and July 15, dealerships lost 56,200 new-vehicle sales. AEG initially projected a $944 million loss but updated it to $1.02 billion due to new sales data and the actual duration of the outage. AutoNation estimated the CDK situation had stripped $1.50 out of its second-quarter earnings per share. On June 21 more than $25 million of bitcoin was sent to an "address assessed by TRM Labs to be controlled by the ransomware group BlackSuit," according to blockchain intelligence firm TRM Labs. AEG CEO Patrick Anderson highlighted the need for businesses to brace for potential cyberattacks, stating, “This episode is a wake-up call for the auto industry, and a warning to all others.” General Motors CEO Mary Barra has adjusted the company’s ambitious EV production target , signaling a shift in expectations amid slowing momentum for electric vehicles. GM will not reach the production capacity for one million EVs by the end of next year, as previously aimed. Barra emphasized that customer demand will dictate the pace of reaching the one million EV annual sales mark. The company faces hurdles, including recent battery production issues and delayed opening of an electric pickup truck plant near Detroit. GM is increasing production of the electric Chevrolet Blazer and Equinox models to boost sales. US EV deliveries were flat in Q2 year-over-year but increased 11% from Q1, per Cox Automotive. Despite the slowdown, Barra remains confident the market will eventually support their EV goals, stating, “We won’t get to a million just because the market’s not developing, but it will get there.” As Amazon gears up for its 10th Prime Day, rival retailers are not sitting idly by . Major players like Walmart, Target, Kohl’s, and newcomers TikTok Shop and Temu have launched their own summer sales to attract deal-hungry shoppers. Retailers are leveraging the excitement around
Mon, July 15, 2024
Which Is Cheaper To Own, EV or ICE?, Inflation Down, Unlocking EV Range
Shoot us a Text. It’s a new week and we’re in a new(ish) location, coming to you live from the 3rd Annual Beaver Toyota of Cumming Charity Golf Tournament. We’re covering a surprising JD Power study that shows that EVs are cheaper to own than ICE vehicles, how the auto industry is influencing inflation, and Tesla “unlocking” extra range for $1000+. Show Notes with links While the high upfront cost of EVs deters many buyers, a J.D. Power analysis reveals that EVs are cheaper to own than gasoline-powered cars over five years in nearly every U.S. state. EVs cost less to own long-term than internal combustion engine (ICE) vehicles in every state except Maine and West Virginia. J.D. Power considered transaction prices, taxes, regional gasoline and electricity rates, and zero-emission vehicle incentives. EVs averaged $57,584 in Q1 2023, about $13,000 more than gasoline vehicles. In some states, EV owners can save over $9,000 in five years. Some dealers, like William Knowles, COO of Maroone USA with 7 dealerships in Colorado, see that the entry price of EVs is still prohibitive. "Even with the EV tax credit and incentives, it's just really hard to come close [to a low priced ICE vehicle]." He also noted that most EV buyers aren’t choosing between an EV and an ICE. They know they want an EV from the start. There’s some good news on the inflation front. The Consumer Price Index (CPI) fell by 0.1% from May, slowing the annual inflation rate to 3% from 3.3%. This marks the first monthly decline since May 2020, driven by falling gas and car prices. The core CPI, which excludes energy and food, also slowed more than expected, rising only 0.1% from May. Shelter costs, a significant component of the CPI, have started to ease, with the shelter index rising only 0.2% in June, the slowest increase in three years. Wells Fargo noted that consumers are feeling increasingly strained, making it harder for businesses to pass price increases on to the consumer. Auto insurance rates have surged by 19.5% over the past year, with the national average for full coverage nearly $2,300 annually or $190 monthly, driven by higher vehicle repair costs, riskier driving behaviors, and increased attorney involvement in accident claims. These rising insurance rates, coupled with higher gas prices and vehicle maintenance costs, are straining household budgets and dampening the typically busy spring and summer car-buying season. Rates are expected to stabilize in 2025. <a href='https://electrek.co/2024/07/12/tesla-star
Sat, July 13, 2024
Handling 'Creative' Ideas From Your Team Effectively w/ Some Help From Matt Lasher
Shoot us a Text. Today we have ASOTU writers Chris Reeves and Kristi Canada in the studio to dissect this LinkedIn post from the CMO of the West Herr Auto Group, Matt Lasher. Matt has one of the most creative and savvy marketing departments in the country. That means there is no shortage of ideas. Matt outlined how to get keep some level of order while the best ideas to the top and building a culture that isn't afraid to share them. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, July 12, 2024
CDK To Pay Dealers, Kia Over Hyundai, A 5-Min EV Charge
Shoot us a Text. We’ve reached the end of another week in the automotive industry. There’s a buzz around news that CDK will financially compensate dealers for their losses due to DMS outages, more interesting Q2 data involving Kia’s EVs and a new battery that could help drive EV adoption. In a letter to over 15,000 dealerships, CDK Global CEO Brian MacDonald committed to compensating customers for financial losses caused by the June cyberattacks, saying "We recognize the events have been challenging, and we will provide you with some financial relief." MacDonald also assured ongoing security improvements: "We have taken steps to secure our environment and we will continue to work with top third-party security experts to constantly evolve our approach. [As] a market leader, CDK is well equipped to make the ongoing and necessary investments." "For the industry, we are offering to any dealer — regardless of whether or not they are a CDK customer — a free tool to conduct training to better prepare for potential cyber incidents and to help dealership employees avoid common pitfalls." Specifics of the compensation will be shared by CDK’s Customer Engagement Team, though a spokesman stated CDK didn’t have "further detail beyond what's in the letter to share at this time." Rita Case, CEO of Rick Case Automotive Group, suggested this approach: "My suggestion would be to offer the dealers, over a year, a credit equivalent to three months of their services." It was reported that CDK payed a $25M ransom to resolve the outage. Kia surged ahead in Q2 US electric vehicle sales , thanks to its new EV9 model. Kia placed third in the US EV market behind Tesla and Ford. The success of the new EV9 model and increased sales of the EV6 contributed to this growth. Kia sold over 29,000 EVs in the first half of 2024, capturing 4.6% of the US EV market The new EV9, a three-row electric SUV, sold 9,671 units in the first six months, and Kia's EV6 sales increased by nearly 40% in Q2. The top 10 EV manufacturers in the US right now are Tesla, Ford, Kia, Hyundai, BMW, Rivian, Chevrolet, Mercedes, Toyota, and Cadillac. Kia’s Q2 market share was 5.4%, topping Hyundai’s 5.1%. "Kia’s rapid growth in the EV sector is a testament to our innovative models and strategic market approach,” said a Kia spokesperson. Nyobolt, a startup from Cambridge, has unveiled a <a href='https://www.cnn.com/2024/07/01/cars/electric-car-
Thu, July 11, 2024
Tesla Under 50% Market Share, 3 Row Pickups, AI Interview Assistants
Shoot us a Text. It’s another great day in the auto industry, and we’re digging into the news that Tesla’s EV market share has fallen below 50%. Plus, pickups are considering adding a 3rd row of seating, and AI is helping job applicants (and potentially BDCs in the future) ace their interviews. Show Notes with links Tesla's dominance in the U.S. EV market might be slipping, dropping below 50 percent as competitors gain ground, even as overall EV sales continue to rise. Cox Automotive’s Q2 report showed that Tesla's market share dropped to 49.7% in Q2 2024, down from 59.3%. This marks the first time Tesla's share has fallen below 50% since the Model S launched in 2012. At the start of the decade, Tesla's market share was 76% but has been shrinking annually ever since. Rivals like GM, Ford, Hyundai, and Kia are closing the gap with total EV sales rising by 11.3% nationwide, hitting 330,000 units. EVs accounted for 8% of all vehicle sales last quarter, up from 7.2% in 2023. Despite the market share drop, Tesla's stock rose 1% following the report. As more and more consumers are using pickups as their daily drivers, Ram is reviving the concept of third-row seating , this time in pickup trucks, reminiscent of the fold-out seats in old station wagons. The innovation aims to add versatility for modern truck owners. Ram filed a patent for a third row of seats folding out of the truck cab's back wall. The rear wall also doubles as a mid-gate, creating a larger cargo area when needed. The concept was first shown in the Ram REVolution electric truck at CES last year. "Is this necessary? Maybe not, but why not add more seating options?" questioned a reviewer. PRODUCER’S NOTE: We had a Ford Ranger growing up with the 2 jump seats in the cab that faced each other. Even as a kid, I remember them not being the most comfortable. I hope this next generation fares better. If using AI on a school test is cheating, what about on a job interview? Final Round AI has introduced tools to help job seekers ace their interviews using AI , sparking debate about the ethics and future of AI in recruitment. Final Round AI offers AI-powered résumé builders, cover letter services, and a mock interview tool. Their Copilot app listens in on interviews and feeds candidates answers in real time. These proxy interviews are becoming more popular and involve candidates secretly receiving answers from e
Wed, July 10, 2024
22 Months of Wholesale Declines, Carvana Tax Credits, Google’s Advanced Protection
Shoot us a Text. We’re rolling through the middle of the week as we cover Cox Automotive’s June wholesale price data and its warnings about lease maturities. Plus, Carvana is now offering used EV tax credits at checkout and Google is making it easier to have advanced account protection. Show Notes with links Used-vehicle wholesale prices experienced a decline in June , continuing a downward trend observed over the past 22 months, according to Cox Automotive. Non-adjusted prices decreased 2.2% from May and were down 10% year-over-year. Retail sales disruptions from CDK outages impacted the market, but declines slowed to a normal pace by month-end. Seasonally adjusted prices were down YoY as well. Luxury vehicle prices dropped 9.9%, SUVs and crossovers 9.3%, Compacts 12%, Midsize 11%, pickups 8.3% and electric vehicles 17%. The availability of 3-year-old vehicles decreased due to fewer off-lease returns, affecting auction supply. Cox forecasts a 12% decrease in lease maturities in Q3, potentially dropping 17-18% in Q4. "This is a pattern that is not going to go away for the next two years, and we'll likely be dealing with it through 2026," said Jeremy Robb, senior director of economics and industry insights at Cox Automotive Carvana is now offering up to $4,000 off at checkout for eligible used EVs and plug-in hybrids, advancing the federal tax incentive so customers can benefit immediately rather than waiting for tax refunds. Discounts are available on Carvana’s app or website for vehicles with a green tax credit banner. Customers must file IRS Form 8936 and transfer the credit to Carvana when filing taxes. This comes as the House of Representatives Ways and Means Committee voted in favor of a bill that would undo federal EV tax credits, arguing they benefit Chinese companies. Google has simplified the process for securing high-risk accounts with its Advanced Protection Program . Now, users can enroll using just a passkey instead of the previously required two physical security keys. The program targets high-risk users like political campaign workers and journalists. Originally, two physical security keys were needed to activate and log in. Users can now set up the program with a single passkey using bio
Tue, July 09, 2024
Beryl Disrupts Dealers, Personalized Pricing Woes, Target Ditches Paper Checks
Shoot us a Text. Tuesdays are for troublemakers! Today we zoom out to see the effects of Hurricane Beryl on the auto industry, talk about personalized pricing and how Target will stop accepting paper checks. Show Notes with links Hurricane Beryl's arrival as a Category 1 storm brought severe weather to southeast Texas on July 8, affecting car dealerships in the Houston area. Beryl caused temporary closures for seven CarMax stores and one vehicle auction location as a CarMax spokesperson stated "We temporarily closed our stores to ensure everyone's safety," "Problems are the mother of invention," said Ben Keating, owner of Keating Auto Group, expressing optimism despite the disruptions as stores experienced significant damage, including building and car damage at a Toyota dealership. Penske Automotive Group's operations in Pharr and Austin remained open, unaffected by the storm. High winds and torrential rain resulted in power outages for over 2 million homes and businesses which may take another day or two to restore Is personalized pricing a doorway to a place no one wants to go? Personalized pricing, driven by AI, is becoming more prevalent, allowing retailers to set prices based on individual characteristics and behaviors. As retailers use AI to exploit personal data, adjusting prices based on factors like age, mood, and even battery life, Nikolas Guggenberger, assistant professor at the University of Houston Law Center argues that personalized pricing can lead to significant biases and inflate prices, often targeting the most vulnerable and said "Algorithmic price discrimination can basically automate usury." The practice is legal in the U.S. as long as it doesn't discriminate based on protected characteristics as companies like Amazon and Uber have been accused of using these tactics to maximize profits. For example, Uber allegedly adjusts ride prices based on a user's phone battery level, potentially charging more if the battery is low. Since the proof is siloed on screens of individual devices in people’s pockets, it is increasing difficult to track and address Target is now eliminating the character-building moment many of us have had to endure as the company announced they will no longer accept personal checks starting July 15, 2024. Target cited low usage as the primary reason for discontinui
Mon, July 08, 2024
40 Under 40, Big Buzz Around Big EV Players, New Gen Z Social NoPlace
Shoot us a Text. We hope you’re as ready for this week as we are as we say ‘hello’ to the new Automotive News 40 Under 40 honorees. We also talk about the buzz over Tesla, Rivian, and Polestar and also the new Gen Z social media app. (We knew you wanted one more) Show Notes with links: It’s that time of year again as we get our first look at the Automotive News’ 13th annual 40 Under 40 class , showcasing the industry's brightest and most dedicated leaders. This year's honorees include both lifelong industry participants and those who discovered their passion for automotive retail later in life. There are more than a few friends of ASOTU as well as some fresh faces. Shoutout to ASOTU Friends: Gregg Ciocca Jr, Katie Gatusso Duncan, Gray Scott, The list includes 16 women and 24 men with an average age of 34.7 years The oldest are 39: Brandon Collins, Ashley Garzone, Ashley Mabery, Nathan Meckley, Caitlin Roberts, Gray Scott The youngest are 27: Ethan Bushong, a Managing Partner, and Kielan Whitner, a GM The EV landscape is buzzing with some notable news from some of the highest profile players, Tesla, Rivian, and Polestar this week: Tesla's Cybertruck might be the best-selling electric pickup in the US, with recall data suggesting 8,000-9,000 units delivered in Q2, surpassing Ford's 7,902 F-150 Lightnings and GM's combined 5,125 EV pickups. Despite the lack of model-specific sales data from Tesla, the Cybertruck's ramped-up production and pent-up demand position it to lead the market, although competition from GM's Silverado EV is growing. Rivian surpassed its Q2 2024 delivery forecasts with 13,790 vehicles, maintaining its annual goal of 57,000 units and aiming for per-vehicle profitability by Q4 2024 through cost reductions and regulatory credits. Volvo plans to reduce its stake in Polestar from 48.3% to 18%, following Polestar's significant financial losses in 2023, including a net loss of $1.17 billion and a decrease in revenue and gross profit. Just when you were getting used to TikTok, and maybe even Threads, there is a new, Gen Z social media app topping out the download charts. <a href='https://www.businessinsider.com/noplace-app-takes-ov
Sat, July 06, 2024
He Didn't Fit In Sales or Servce... But They Found A Role
Shoot us a Text. Happy Saturday! Today, Head Writer Chris Reeves invites Head of Community Jordan Cox onto the show, so he can share about his recent trip to Rohrman Toyota. Jordan shares about some of the creative marketing campaigns they've done, plus how their GM Zac Kinch works to make sure everyone on the team is in the best seat. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, July 05, 2024
Prices Up, Prices Down, Prices WAY Down
Shoot us a Text. You may be getting a multitude of OOO messages, but not from us! Today we’re talking about declining vehicle prices consumers aren’t seeing. We also talk about a sub $20/mo EV lease, as well as Fisker’s clearance rack. Show Notes with links The average price paid for new vehicles is set to drop for the first time since 2008, falling 3% year-over-year to about $45,000 in June, but rising interest rates are keeping monthly payments high. Monthly car payments have reached a record high of $740, compared to an average of $550 pre-pandemic, due to higher interest rates despite better deals As inventory continues to build, dealer promotions and financial incentives now average 5% off the sticker price, compared to 10% pre-pandemic John Patterson, owner of Hyundai, Kia, and Mazda dealerships in Southern California, notes a shift in buyer behavior: “We’ve seen customers who bought a premium car over the last few years coming back to reality.” Patterson emphasizes that higher interest rates are a significant factor in keeping many consumers away from dealer lots this year. A Nissan dealer in Colorado is offering a seemingly too-good-to-be-true lease deal on the Nissan Leaf S model, making these EVs perhaps the most accessible EV on the planet. Tynan’s Nissan Aurora in Aurora, CO who has been family owned and operated since 1963 is leveraging Colorado’s generous state electric vehicle tax credit (which can be as much as $8000), an NMAC credit, and a $1,000 Nissan EV cash rebate. The lease deal is advertised at zero money down and only $19 per month. Buyers can either pay the $695 acquisition fee and $699 dealer handling fee upfront or roll them into monthly payments, making the total monthly payment $59 with fees. Over a 24-month lease, if you don’t exceed 20,000 miles, you could end up paying just $1,850 plus minimal electricity costs to drive a new Leaf. Using the average Leaf consumption rate, driving 20,000 miles would cost around $599 in electricity over two years at Colorado’s average rate of 12.28 cents per kWh. Originally, 15 units were advertised at this price but now there are 60 showing on the site with a “As Seen on YouTube” statement on the homepage Fisker, the bankrupt electric vehicle start-up, is seeking court permission to sell its remaining 3,300 vehicles at an 80% discount to American Leasing, wh
Thu, July 04, 2024
BBQ Price Spike, Drone Explosion, Who’s On The Road
Shoot us a Text. Happy Independence Day! We’re giving you a quick hit of BBQ prices, drones v fireworks, and some substantial travel numbers. Grab some mac salad and join us. It will be an expensive Fourth of July for most consumers as BBQ prices hit an all-time high. As BBQ essentials have significantly increased in price, up 5% from last year and 30% from five years ago. The survey checked prices for a complete cookout including cheeseburgers, chicken breasts, pork chops, and more. Feeding 10 people will cost $71.22, up 5% from last year and 30% from five years ago. The grocery list included: cheeseburgers, chicken breasts, pork chops, potato chips, pork and beans, fresh strawberries, homemade potato salad, fresh-squeezed lemonade, chocolate chip cookies, and ice cream Fewer cattle are being placed on feed, leading to higher beef prices. “Yes, food prices are increasing, but they’re not increasing as much as they have in recent years, and they’re even a little below the long-run average,” said economics professor Andrew Stevens. “The consumer is waving the white flag on food inflation,” said Tom Bailey, senior consumer foods analyst at Rabobank as the cost disparity between dining out and cooking at home at its widest margin in history, we’re seeing heightened fatigue and frugality according to PR Newswire More cities and organizations are throwing out the fireworks shows and instead incorporating drone shows into their July 4th events. Los Angeles replaced the traditional downtown July Fourth fireworks with a drone show, aiming for innovation and wildfire safety. The move paid off as the crowd responded positively to the new experience. Nashville and the Kansas City Royals are combining drones with fireworks, while Napa and Tahoe City are using drones exclusively. Safety and environmental concerns drive the shift, as drones do not leave debris or risk fires. Drones offer creative storytelling synced to music but come at a higher cost than traditional fireworks, and shows often don’t last as long due to battery life. Despite some initial resistance, the innovative approach is gaining acceptance and evolving rapidly. AAA projects a record-breaking 70.9 million travelers will journey 50 miles or more for Independence Day, marking a 5% increase from last year. This year’s holiday travel period spans nine days (Saturday, June 29 to Sunday, July 7), the longes
Wed, July 03, 2024
Is This The End Or Beginning, Hybrid Loyalty Cruising, State Farm's Golden Ultimatum
Shoot us a Text. Welcome to Wednesday as we cover the full restoration of CDKs DMS. We also talk about the big surge in hybrid loyalty, as well as a major insurance ultimatum set by State Farm to the State of California. Show Notes with links "We are ahead of the anticipated schedule, and as of this morning, substantially all dealer connections are live on the Dealer Management System," are words we’re sure that felt great for CDK to say and for Dealers to hear as the company announced significant progress in restoring its DMS services to Dealers across the country The reboot is ahead of schedule as the company’s target restoration date was July 3 or 4, with most dealer connections live as of July 2 after the June 19 ransomware attack impacted over 15,000 CDK customers in North America. Dealer Todd Szott, dealer partner at Szott Auto Group in metro Detroit and president of the Detroit Auto Dealers Association confirmed his stores are back online and processing transactions smoothly. Despite challenges, Szott’s team exceeded their sales goal, selling over 500 vehicles in June. CDK has not disclosed if the cyberattacks involved the theft of sensitive customer information, and the company has declined to comment on reports of paying a ransom. On July 1, four dealerships and two consumers filed a federal lawsuit alleging compromised private information and business harm, with other related lawsuits pending. Customer loyalty to hybrid vehicles reached a record high in the first quarter while demand for electric vehicles remained flat. This marks the seventh consecutive quarter that hybrid loyalty has increased. 42% of hybrid owners who returned to the market in the first quarter purchased another conventional or plug-in hybrid, according to S&P Global Mobility. Sales of conventional hybrids more than doubled in the quarter compared with a year earlier, with plug-in hybrid sales rising 59%, according to Cox Automotive. Conventional and plug-in hybrids made up about 11 percent of light-vehicle sales, a record high. In contrast, EV share was relatively flat at 7.2 percent, down from 7.3 percent in the first quarter of 2023. "Cost is one of the biggest drivers of hybrid sales," said Thomas Libby of S&P. "Many hybrids have sticker prices under $30,000, while the average transaction price for an EV exceeds $57,000." John Iacono of BRAM Auto Group noted that "[Hybrids] take care of their sensitivity to the environment, but yet doesn't alter their lifestyle," State Farm, California’s largest insurer, has <a href='https://retai
Tue, July 02, 2024
48 Hours To Full CDK, EV Prices Below Tesla, Dealership ‘Office’ Parody
Shoot us a Text. The second half of 2024 is rolling and we’re talking about CDK’s race to fully restore services in teh next 48 hours. We’re also covering the drop in average EV prices below Tesla's for the first time in over a year as well as how our friends at Mohawk Chevrolet's "The Office"-inspired TikToks are taking the internet by storm. CDK Global expects its DMS to be fully restored by July 4 following cyberattacks that disrupted operations starting on July 19th for thousands of dealerships across North America. CDK has been restoring services in phases, with many dealers already back online as of July 1. Beyer Auto Group's CDK system came back online unexpectedly on July 1, which helped ease some anxiety among the staff about the indefinite outage. Despite the restoration of the core system, their customer relationship management system and third-party integrations are still not functional, causing ongoing operational challenges. Employees are now focused on the monumental task of recording all deals and service orders manually entered during the outage into the system, as explained by COO John Altman. "There is some exasperation. I can see on their faces that they are just looking at this monumental task. But at least they know where they are at this point." - Said Altman The disruption is expected to cause a 10% drop in Q2 earnings per share for major U.S. dealership groups, potentially costing nearly $1 billion. Automakers have cut electric vehicle prices to a level below Tesla's average for the first time since early last year, driven by increased competition and market dynamics. The average transaction price of an EV, including Tesla, was $55,235 in April, $433 less than Tesla's average price. The trend continued in May, with the industry average EV price being $56,648, $721 less than Tesla's. Tesla's pricing cuts have influenced the market, pushing competitors to reduce prices or offer discounts, leading to an average discount of 12.4% on EVs in May. Despite price cuts, new Tesla registrations fell 17% in April, while EV registrations excluding Tesla grew 69%. Used EV sales have surged, growing 84% in May, as declining prices and federal tax credits make them more affordable for consumers. Mohawk Chevrolet in upstate New York has gained viral fame with a mockumentary-style TikTok series inspired by "The Office," featuring real-life dealer
Mon, July 01, 2024
Farley’s Ode To EVs, Sub-$25K Jeep EV, Bugatti Robotaxi
Shoot us a Text. Welcome to a new month and a new quarter! Today we’re covering Jim Farley’s conversion from “petrol head” to EV enthusiast, Jeep’s plans to bring a sub-$25K EV to the US market and a new robotaxi from the CEO of Bugatti. Show Notes with links: Ford CEO Jim Farley has posted his argument for EVs on LinkedIn, discussing the potential and challenges of EVs, while emphasizing his personal experience and Ford's commitment to innovation. Farley describes his deep-rooted love for traditional cars and his surprise at falling in love with electric vehicles through his experience with the Ford F-150 Lightning Platinum. He highlights the convenience of EVs, such as the absence of gas station visits, quiet operation, smooth acceleration, and unique features like a massive frunk and mobile generator capabilities. “The tipping point we’re working toward will come not from regulators who push us or from politicians who try to hold us back. It will come from consumers. Not when an arbitrary market share is reached, but when electric vehicles are simply better for more customers – better to drive, cheaper to own, and easier to integrate into daily life.” Jeep has announced plans to launch an affordable Renegade EV in the US for under $25,000, but industry experts are skeptical about the feasibility of hitting this price point. Jeep aims to launch a new model every year over the next three years, with a goal of increasing its market coverage in North America from 45% to 85% by 2027. Experts doubt Jeep can achieve the $25,000 price point, citing potential production outside North America, which would disqualify the vehicle from federal incentives. Ralph Mahalak Jr., a Jeep dealer, supports the idea of a low-cost EV but stresses the need for a range of 200 to 300 miles to be competitive. Other brands like Kia, Volvo, and Chevy are also targeting the low-cost EV segment, with prices starting around $30,000 to $35,000. “If the Renegade comes in at, let’s say [$30,000] starting for the launch models, or maybe even [$35,000], it could put up some numbers for Jeep,” says Edmunds’ Joseph Yoon. Rimac, known for its million-dollar hypercars, has ventured into autonomous vehicles with the launch of its robotaxi, "Verne." Named after the novelist Jules Verne, this innovative two-seater EV aims to revolutionize urban transportation. The Verne is a two-door, two-seat
Sat, June 29, 2024
Dealers Giving Away Smiles (But Not The Way You're Thinking)
Shoot us a Text. It's the last Saturday of month! Head Writer Chris Reeves joins the show to talk about how Beaver Toyota of Cumming covered someone's dental costs as a part of the Fish Christmas Wish List. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, June 28, 2024
Big Group Back Up, Tesla’s Quality Fade, Consumer Experience Stumbles
Shoot us a Text. We’re ripping into the last weekend in Q2 as we talk about more CDK stores coming back online. We also cover Tesla’s slipping quality ranking from JD Power, as well as the consistent overall drop in consumer experience. Show Notes with links: CDK Global is gradually restoring dealerships and a public retailer after the recent cyberattacks, with Group 1 now back online. CDK Global brought a second small set of dealer customers back online on June 27, including one large public dealership group. The company is continuing a phased restoration approach, focusing first on the core Dealer Management System (DMS). Group 1, confirmed by Automotive News, is the large public dealer now live on the core DMS. CDK is working to bring other applications, such as CRM, One Eighty, and CDK Service, back online and expects customer care channels to be active by June 28. Meanwhile, major publications like the WSJ are warning consumers to bring a pen and patience if they are going car shopping this weekend adding to the mounting losses for Dealerships Tesla's edge in EV quality is fading as repair issues persist, according to J.D. Power's latest study as the 2024 U.S. Initial Quality Study reports Tesla's now match legacy automakers in quality, with 266 problems per 100 vehicles. Last year, Tesla outperformed traditional EVs with 257 problems per 100 vehicles compared to 265 for legacy automakers. However, customer dissatisfaction is growing due to Tesla removing traditional feature controls like turn signals and wiper stalks. This year, Tesla is level with other automakers at 266 per 100 vehicles The broader industry shows EVs, including BEVs and PHEVs, have more issues than gas-powered vehicles, averaging 266 vs. 180 problems per 100 vehicles. J.D. Power's Frank Hanley notes EV owners visit dealerships three times more often than gas vehicle owners due to severe problems and said, "It is not surprising that the introduction of new technology has challenged manufacturers to maintain vehicle quality." Customer experience in the U.S. has declined for the third consecutive year , with an average rating hitting a new low due to inflation and ineffective customer-service chatbots, according to Forrester's latest report Forrester's study shows an average customer experience score of 69.3 out of 100, the lowest since 2016. Scores have fallen from a peak of 72.0
Thu, June 27, 2024
CDK Back Online, Waymo For All, Netflix Mall
Shoot us a Text. Thursday seems ready to run as we talk about CDK coming back on-line yesterday for a test group of dealers. We also talk about Waymo’s green light in San Francisco as well as a major Netflix experience coming to a mall near you. Eight days after two cyberattacks severely disrupted its dealership management system, CDK Global has made progress by successfully testing a system reboot with a small group of dealers. In an afternoon statement to Automotive News, the company said "We have successfully brought a small initial test group of dealers live on the Dealer Management System (DMS), and once validation is complete, we will begin phasing in other dealers." CDK plans to phase in other dealers once validation is complete as efforts are also underway to restore additional applications, including CRM and service solutions. "We understand and share the urgency for our customers to get back to business as usual," CDK said in a statement. One dealer even posted an image of his screen with a comment that he’s ‘never been so happy to see this screen’ Despite numerous challenges, Waymo’s robotaxi service is now thriving in San Francisco , bringing driverless taxi rides closer to becoming commonplace as Waymo One, using self-driving Jaguars, is now available to everyone in San Francisco. San Francisco is the second city to fully adopt Waymo, following Phoenix, Arizona. Limited service is currently available in Los Angeles, with plans to expand to Austin, Texas, later this year. The service has faced several hurdles, including safety probes, software recalls, and even vandalism. Despite these issues, Waymo has had significant demand, with 300,000 people on its San Francisco waitlist. As of April, Waymo’s cars have driven over 3.8 million miles in San Francisco. Waymo aims to become profitable, competing with Uber and Lyft, and recovering development costs. For now, Waymo stands as the future of the US robotaxi industry, especially after its closest competitor, Cruise, had its California licenses suspended. Netflix has announced plans to open its first two permanent experiential entertainment venues in Dallas, TX, and King of Prussia, PA, in 2025. These Netflix Houses will include shopping outlets, eateries, and immersive activities based on popul
Wed, June 26, 2024
Rivian Loves V-Dubs, Outage Latest, Target’s New AI
Shoot us a Text. Welcome to Wednesday as we talk about Volkswagen's significant investment in Rivian, the latest on the DMS Outage as well as how Target plans to empower its retail associates with a new GenAI-powered chatbot tool. As thousands of Dealers on the CDK platform are about to enter their second week of ongoing disruptions, the company has said there is no resolution expected before June 30. CEO Brian MacDonald defends the company's crisis response amid rising tensions and legal challenges. CEO Brian MacDonald has begun speaking publicly by asserting the company's proactive engagement with dealers and commitment to support, In a June 25 note, CDK wrote, “We do feel it is important to share that we do not believe that we will be able to get all dealers live prior to June 30 but are making making significant progress.” The company emphasized transparency and urged dealers to use their available resource center while encouraging alternate planning for financial statement preparation CDK currently faces two lawsuits seeking class-action status over compromised personal information. One Filed by vehicle lessee Yuriy Loginov on June 22, alleging negligence, breach of contract, unjust enrichment, and breach of fiduciary duty, seeking class-action status for anyone in the U.S. whose private information was compromised. The Second Lawsuit, filed by former dealership employee Eugene Buraga on June 24, alleges negligence, breach of confidence, breach of contract, and violations of the California Consumer Privacy Act, seeking class-action status for those whose information was exposed to unauthorized third parties. Volkswagen is set to invest up to $5 billion in Rivian , aiming to strengthen its software unit and support the EV startup's next generation of vehicles. VW will invest $2 billion in a joint software company using Rivian’s technology and purchase a $3 billion stake in Rivian over several years. The investment provides Rivian with necessary capital to launch more affordable vehicles and improve its balance sheet. Rivian shares rose about 30% in aftermarket trading following the announcement. RJ Scaringe, Rivian's CEO, emphasized that the partnership lowers parts costs and spreads software development costs over a larger fleet. VW aims to use Rivian's technology to address issues in its software unit, Cariad, which has faced quality problems. Scaringe also emphasis that this is enough cash to get the company to the point where it is able to gene
Tue, June 25, 2024
Who Owns The Driving Data? - Tesla Cyber-recall - Gen Z’s Version Of Fact Checking
Shoot us a Text. This Tuesday we dive into a new survey showing that over 95% of American drivers want to own their vehicle data. We also discuss Tesla's latest Cybertruck recalls over wiper and trim issues, as well as the (maybe not-so-) surprising approach of Gen Z to find the truth online. Show Notes with links: A recent survey reveals that over 95% of American drivers want to own the data generated by their vehicles, posing significant challenges for automakers, insurance companies, and data brokers. The survey by car insurance savings app Jerry polled 1,300 adults who own or lease vehicles and drive at least once a week. 96% of respondents believe they should own any data generated from their cars, and 78% are uncomfortable with automakers collecting driver data. These findings challenge manufacturers' plans for customized vehicle settings, personalized subscription offerings, and smart R&D based on driver data usage. General Motors faced backlash for unknowingly selling customer data to insurance companies, resulting in unexplained premium hikes. "Even two-thirds of Gen Z [respondents] said they're uncomfortable or extremely uncomfortable with collection of their location history," said Henry Hoenig, a data journalist at Jerry. The U.S. National Highway Traffic Safety Administration (NHTSA) reported Tesla is recalling 11,688 Cybertrucks due to a windshield wiper failure that could reduce visibility, increasing crash risk. An additional 11,383 Cybertrucks are being recalled because a trim in the trunk bed could become loose, creating a road hazard for other motorists. This follows a previous recall in April involving nearly 4,000 Cybertrucks to address an accelerator pedal pad that could get lodged in the interior trim. These issues add to the production challenges of the Cybertruck, with mass production expected to start next year despite delays and a difficult ramp-up described by CEO Elon Musk as “digging its own grave.” Tesla’s service team will replace the wiper motor and secure the trim free of charge for affected vehicles. Google's research into Gen Z's online habits reveals some surprising trends, showing how America's youngest adults interact with digital content and navigate their digital environment. Researchers at Jigsaw, a Google subsidiary, found
Mon, June 24, 2024
Is This The CDK Hacker? Is This The Future of Car Sales? Is This Chick-Fil-A Child Labor?
Shoot us a Text. There’s light at the end of the tunnel this Monday as CDK starts the restoration process of its DMS. Today, we discuss the identity of their hacker, give an update on the Hyundai-Amazon partnership and look at a Chick-Fil-A summer camp that has the internet in an uproar. Show Notes with links: As of this weekend it was reported that CDK Global has initiated the restoration process following crippling cyberattacks referred to as a ransom event. This process, expected to take several days, has left dealerships across the U.S. and Canada struggling to operate normally. Meanwhile, we have a potential glimpse into who did it. The restoration process for major applications for the over 15k dealerships affected is expected to take several days, meanwhile dealerships have been busy re-innovating using manual processes to continue operations. Meanwhile, a report by bleepingcomputer.com over the weekend claims to know the hacking group responsible citing the same inside anonymous sources that have been providing accurate information throughout the entire situation BlackSuit launched in May 2023, believed to be a rebrand of Royal ransomware. Royal Ransomware, and BlackSuit, are successors of the notorious Conti cybercrime syndicate. Hyundai Motor America is encouraging more dealers to join its Amazon retail program ahead of its consumer launch later this year. Randy Parker, Hyundai’s U.S. CEO, updated dealers on the program's progress, enabling shoppers to buy a Hyundai online. An email from Hyundai offered interested dealers the chance to sign up via an online portal without commitment, touting benefits like access to millions of shoppers and the potential for incremental sales. The beta phase received positive feedback from both customers and dealers, with Amazon continuing to test and refine the online vehicle shopping experience. However, Amazon's onboarding capacity is limited, raising questions about prioritization. Don Hall, president of the Virginia Automobile Dealers Association, expressed concerns about trade-ins and leasing: "We don't want to see this car sold off to outside folks who sell used cars online. It's not a small point, it's a big point." The introduction of a $35 “ Chick-fil-A Summer Camp ” for children aged 5 to 12 at a Louisiana location sold out quickly but faced criticism on social media. The camp offers a behind-the-scenes look at working at Chick-fil-A,
Fri, June 21, 2024
Lease Return Dry Up, EV Registrations Rise, Car Shopping Myth Buster
Shoot us a Text. We are on day 3 of dealers banding together to keep the doors open at CDK powered rooftops and the energy could not be better! Today we are looking at the impact lease returns will have on used inventory, the rise of EV registrations recently, and a TikTok car shopping myth buster is making waves. Show Notes with links: Dealers are bracing for a significant decline in lease turn-ins , a lingering impact of the COVID-19 pandemic. This reduction threatens new-vehicle sales, certified pre-owned (CPO) programs, and customer retention. Lease turn-ins will decline starting next month, impacting new-vehicle sales and CPO programs. The leasing rate dropped dramatically in mid-2021, from 1 in 3 new vehicles to as few as 1 in 6. Analysts predict used-vehicle supply won’t return to 2023 levels until the end of the decade. The reduction will hit GM dealers later in 2024, while Toyota dealers will feel the impact in 2026. "Three-year-old off-lease vehicles are the backbone of the used-car market," J.D. Power's Jominy said. "Even though we will still see [used-vehicle] prices fall because we're unwinding the COVID supply chain dynamics still in the industry, [the lack of lease turn-ins] is going to help support the bottom of the market, so we're not going back to where we were previously," in terms of used-car prices. [Source: Automotive News] Despite concerns of a market cooldown, electric vehicle sales continued to grow in April, with notable contributions from Ford, Rivian, and Toyota. Drastic price cuts and incentives led to over $10,000 in savings on some models, boosting EV registrations by 14%. EVs accounted for 7.4% of total light-vehicle registrations, outpacing the overall market's 7.3% gain. The Toyota bZ4X saw a 646% increase in registrations, leading the surge, while Ford’s Mustang Mach-E and F-150 Lightning were up 287% and 96%, respectively. Rivian's R1S and Hyundai's IONIQ 5 also saw impressive increases, with 127% and 93% growth. "Automakers are bringing EV prices down to the ICE level and it’s moving the merchandise,” said Tom Libby, associate director of industry analysis at S&P Global Mobility. TikToker and car salesperson Ash has shed light on why some consumers might be hesitant to test drive cars at dealerships, providing valuable insight for dealers. Ash warned consumers that they may form an emotional attachment to a car during a test drive and
Thu, June 20, 2024
Push Back On the Hack, Techs As Athletes
Shoot us a Text. It’s a busy Thursday in the dealership as stores across the country wake up to CDK Global’s DMS being offline for a second straight day. But it’s not all doom and gloom, as we’re highlighting how Carter Myers Automotive celebrates new apprentice techs with a signing day. Show Notes with links: Yesterday’s cyberattack against CDK Global's DMS disrupted nearly 15,000 dealerships. The attack halted various operations, including parts, service, accounting, finance, insurance, inventory, and cashier tasks, pushing dealers to adapt quickly to maintain sales and operations and apparently, it's not over. In an email to customers, CDK wrote, "We are sorry to inform you that we experienced an additional cyber incident late in the evening on June 19th. Out of continued caution and to protect our customers, we are once again proactively shutting down most of our systems. We are currently assessing the overall impact and consulting with external third-party experts. At this time, we do not have an estimated time frame for resolution and therefore our dealers' systems will not be available at a minimum on Thursday, June 20th." Rita Case, CEO of Rick Case Automotive, resorted to using pencil and paper, comparing it to hurricane-induced power outages. "We'll just have to do it manually. It's not different than when a hurricane comes and we're out of power. We'll just have to do everything by hand, then we'll have to recreate it. …We're following the instructions CDK has given us to protect the integrity of our information. This type of problem hasn't happened before." said Case who’s group has been with CDK since 1979 Teddy Morse, CEO of the Ed Morse Auto Group, one of the largest private groups in the country, said, “"That's a fun term to wake up to, by the way," Morse told Automotive News, reading a text from his team that simply said, ‘There has been a cyber event.' Morse continued "CDK systems are an important tool, but my team isn't completely reliant on them because our group will continue to take care of customers, and sell and service cars." 80% of his 50 stores are on CDK Carter Myers Automotive celebrates new apprentice technicians with signing ceremonies , similar to college athlete signings, to honor and promote careers in auto repair. Signing ceremonies include family, friends, local media, and politicians, attracting 100-150 attendees to cheer on the new apprentices. Beth Lucchesi, Talent Acquisition Specialist at CMA, emphasizes the benefits of trades, such as no college debt and great earning potential and said, “"
Wed, June 19, 2024
American Bragging Rights and Two Separate Screen Fights
Shoot us a Text. Welcome to Wednesday as we dig into the 2024 Cars.com American-Made Index, revealing the most American cars. We also dig into a McKinsey survey showing how crucial smartphone integration is for car buyers and take a pass at the U.S. Surgeon General Vivek Murthy's proposal for social media warning labels to protect young people's mental health. Show Notes with links: The 2024 Cars.com American-Made Index reveals the most American-made cars with this year bringing some surprise shifts to the top ten The index is determined by five key criteria to ensure a comprehensive assessment of a vehicle's domestic production impact: assembly location, percentage of U.S. and Canadian parts, origin of engines, origin of transmissions, and the U.S. manufacturing workforce. For the third year in a row, the most American car is the Tesla Model Y, but Tesla's other models have seen a drop in rankings due to Tesla's workforce calculations The top ten are Tesla Model Y, Honda Passport, Volkswagen ID.4, Tesla Model S, Honda Odyssey, Honda Ridgeline, Toyota Camry, Jeep Gladiator, Tesla Model X, Lexus TX GM doesn’t show up on the list until #23 with the Colorado and Ford is on the bench until #31 with the Mustang A recent survey indicates that 56% of in-market shoppers prefer American-made vehicles, with many willing to pay more to support domestic jobs A recent McKinsey & Co. survey reveals that a third of car buyers would refuse to purchase a vehicle without Apple CarPlay or Android Auto, underscoring the importance of smartphone integration. 30% of EV buyers and 35% of ICE buyers globally consider smartphone integration essential. In the U.S., 25% of EV buyers and 38% of gasoline vehicle buyers feel the same. Some buyers are willing to pay extra for smartphone integration: 17% of ICE and nearly 30% of EV buyers. Automakers are wary of ceding the infotainment experience to tech companies, focusing on developing native systems. Kevin Laczkowski of McKinsey stated plainly, “If an OEM moves away from seamless smartphone integration, obviously that's a risk.” U.S. Surgeon General Vivek Murthy has proposed mandatory warning labels on social media platforms to highlight their potential mental health risks to young people. Murthy cites studies showing social media increases anxiety and depression in teens. Teenagers spend nearly five ho
Tue, June 18, 2024
Fisker's Fall, Toyota's Governance Gamble, Apple's Wireless CarPlay Future
Shoot us a Text. It’s Tuesday and today we’re talking about Fisker's Chapter 11 bankruptcy filing amid financial turmoil, Toyota shareholders re-electing Akio Toyoda despite governance concerns, and the future of Apple's wireless-only CarPlay system facing industry skepticism. Show Notes with links: Electric vehicle startup Fisker has filed for Chapter 11 bankruptcy, citing quality problems with its Ocean crossover and an unsuccessful partnership attempt. This marks Henrik Fisker's second car company to declare bankruptcy. Fisker filed for Chapter 11 after months of quality issues with its Ocean crossover and significant financial losses, including a $463 million net loss in Q4 2023. The Ocean crossover struggled with distribution, incomplete software, and multiple safety investigations, including braking and door-latch issues by NHTSA. Partnership negotiations with Nissan failed, adding to the strain on Fisker's finances and operations. Henrik Fisker announced, "proceeding with a sale of our assets under Chapter 11 is the most viable path forward," as the company reported assets between $500 million to $1 billion and liabilities from $100 million to $500 million. Production at Magna Steyr's plant in Austria was halted in March, leading to a $400 million revenue loss for Magna and 500 job cuts Toyota Chairman Akio Toyoda and nine other board members were re-elected at the annual general meeting, with shareholders overlooking governance and certification test scandals. Toyoda's popularity and the automaker's strong business performance played a crucial role in his re-election. Proxy advisers recommended against Toyoda's re-election due to governance issues and certification test scandals at Toyota and its affiliates. Despite a drop in Toyoda's approval rating from 96% in 2022 to 85% last year, shareholders re-elected him, reflecting his popularity and strong company performance.\ Toyota's shares have fallen 10% since new certification irregularities were revealed but are still up 18% for the year. CEO Koji Sato reiterated apologies for the certification problems but did not address the proxy advisers' recommendations. Our friends at GM may not care quite as much about this, but Apple's next-gen CarPlay is set to work wirelessly and aims to unify the car's interface, but adoption remains slow with only Aston Martin and Porsche on board so far as automakers rem
Mon, June 17, 2024
New Normal Revenue, Steve Greenfield’s Elon Musk Hot Takes
Shoot us a Text. Welcome to a brand new week as we welcome Steve Greenfield as a guest host. Today we’re covering how the publics are adapting to the “new normal" and dive into Elon Musk’s Telsa pay package. Show Notes with links: The booming revenue period during the pandemic is fading, leaving dealerships to adapt to a "new normal" marked by high interest rates and rising inventories. Asbury Automotive Group: Acquired Larry H. Miller Dealerships and Jim Koons Automotive Cos., integrating the new F&I products across its stores. Asbury generated $14.8 billion in revenue in 2023 and expects to complete the integration by the end of the year. AutoNation Inc.: Focused on diversifying operations with acquisitions like RepairSmith and expanding its e-commerce parts business. The company launched autonationparts.com and remains selective with mergers and acquisitions. CarMax Inc.: Extended its goal to sell 2 million vehicles annually to 2030, opened five new stores, and faced challenges in the used-car market. The company reported a 5.2% drop in retail vehicle sales and a 6.6% decline in wholesale sales in fiscal 2024. Carvana Co.: Reported a net profit with a 17% increase in revenue, focusing on leveraging ADESA auction sites for growth. Carvana plans to convert more ADESA sites into inspection and reconditioning facilities. Tesla shareholders have affirmed Elon Musk’s multibillion-dollar compensation package, ensuring his position atop the world's most valuable automaker. However, Tesla faces legal challenges over the 2018 stock-option deal, now valued at $48 billion. Elon Musk’s stock-option deal passed in 2018, now worth $48 billion, is facing legal opposition. Musk celebrated with on-stage antics and ambitious visions, including billions of humanoid robots and a $30 trillion valuation for Tesla. Despite challenges, Tesla’s Model Y was the top-selling vehicle worldwide in 2023, marking the first time an EV led global rankings. ARK Invest predicts Tesla's share price will reach $2,600 by 2029, with robotaxi business driving nearly 90% of the company's value. "Old Elon had returned," exclaimed a Tesla shareholder, thrilled by Musk's renewed enthusiasm and bold projections. Comment from Automotive Ventures weekly email: Tesla’s core business is faltering, and Elon Musk’s hype has barreled past the boundaries of outright fantasy, damaging the company’s reputation and entangling it in legal battles Earned the <a href='https://www.linkedin.com/feed/update/urn:li:ugcPost:7207386419550416896?commentUrn=urn%3Ali%3Acomment%3A%28ugcPost%3A7207386419550416896%2C7207475823535149057%29&dashCommentUrn=urn%3Ali%3Afsd_comment%3A%287207475823
Sat, June 15, 2024
Planet Ford of Humble, TX Should Be Proud
Shoot us a Text. Head Writer Chris Reeves joins the show on this Saturday to cover their Father's Day plans and talk about how Planet Ford of Humble, Texas gave out scholarships to students in their community. Thanks to Charles McCann for hitting us up and sharing this story with us! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, June 14, 2024
Ford EVs for All, $48B for Musk, App Data for Insurance
Shoot us a Text. It’s the end of another week and today we’re talking about how Ford is allowing all franchise dealers to sell EVs, and how Tesla shareholders approved Elon Musk’s pay package. Plus, we cover how apps are selling driving data to insurance companies. It’s official, Ford is opening EV sales to its entire dealer network starting July 1, aiming to better serve customers and adapt to the evolving market. Ford will end its costly Model e electric vehicle certification program less than two years after its rollout. Dealers will now invest in training via Ford University and install two Level 2 chargers. Dealers must complete new training and have adapters for future EV charge ports. Regarding the dealers who invested heavily in the program early on, it is unclear if there will be any consideration, financial or otherwise, given by Ford. Gjaja said regarding this, "Based on what we knew at the time, we think it was the right call," he said. "We believe we're pivoting at the right time to take advantage to what's happening in the market. The market's changed. It's humbling, but the most important thing we can do for our dealers and our business is to change with it, and not just keep pounding away with the same strategy." Tesla shareholders have approved Elon Musk's $48 billion pay package, but the CEO can't celebrate just yet as a new legal battle looms. Shareholders approved Musk’s compensation package, clarifying his role at Tesla. Among the broad retail investor support, the company’s largest outside shareholder, Vanguard, who represents upwards of 50 million investors, switched its vote in favor of Elon Musk’s $56 billion pay package due to the strong alignment of executive pay with shareholder returns and the motivational value for Musk, despite initially opposing it in 2018 because of its potential size. The board hopes this resolves previous judicial concerns, but legal experts are skeptical. Musk expressed gratitude to shareholders, with 72% supporting the pay package. A court case in July will determine the legality of the compensation plan. Tesla plans to appeal if the court doesn't reverse its previous decision. “Hot damn, I love you guys,” Musk said at Tesla’s annual shareholder meeting. Feel like you’re being watched? According to a New York Times report , apps on your phone are tracking your driving habits and selling the data to insurers. Insurers a
Thu, June 13, 2024
Back To ICE, Used Car Market Dip, Costco's Tech Timing
Shoot us a Text. It’s Thursday and we’re talking about a McKinsey study showing many EV owners considering a return to combustion engines, a decline in used-vehicle wholesale prices, and Costco’s plans for a technological transformation under new leadership. A McKinsey & Co. survey reveals that over 40% of U.S. EV owners are likely to switch back to combustion engine vehicles due to charging concerns. The study asked 200 questions to more than 30,000 consumers in 15 countries that comprise 80% of EV sales volume 46% of U.S. EV owners and 29% globally are likely to revert to combustion engines. Inadequate public charging infrastructure, high ownership costs, and impacts on long-distance travel are top concerns. Philipp Kampshoff, the leader of McKinsey’s Future Mobility division said, “I didnt expect that. I thought once an EV buyer, always an EV buyer.” Twenty-one percent of global respondents do not want to switch to an EV, with 33 percent citing charging concerns, exacerbated by rising range expectations from 270 miles in 2022 to 291.4 miles today. Cox Automotive reports a slight decline in used-vehicle wholesale prices in May, with significant yearly drops and varying impacts across vehicle segments. The Manheim Used Vehicle Value Index fell to 197.3 in May, down 0.6% from April and 12% from May 2023. On a non adjusted basis, prices declined 1.2% in May from April and were down 11% year over year with retail supply of used vehicles remains lower than last year Average non adjusted wholesale prices for 3-year-old vehicles decreased 2% over four weeks, including a 0.7% decline in the last week of May. Seasonally adjusted wholesale prices for luxury vehicles, SUVs/crossovers, compact vehicles, midsize vehicles, and pickups were down 11-17% year over year. Used EV values were down 16% year over year and declined 2.4% month over month in May. Costco is set to undergo significant changes as new leadership aims to enhance its technological infrastructure and e-commerce capabilities. New CEO Ron Vachris and CFO Gary Millerchip are focused on expanding Costco’s digital presence and fulfillment offerings. Historically conservative with technology, Costco plans to improve its buy online, pick up in-store model, starting with electronics, and enhance member engagement through technology, with over 90% membership renewal rates globally. Vachris emphasizes evolutionary changes th
Wed, June 12, 2024
Ford CFOs ‘Worry’, EV Charging Alliance, Starbucks Hits Hollywood
Shoot us a Text. Welcome to Wednesday as we dive into Ford's CFO’s concerns over rising inventories, an EV charging joint venture's plans, and Starbucks' surprising venture into the film industry with the launch of Starbucks Studios. Ford CFO John Lawler expressed concerns about rising inventory levels across the automotive industry, emphasizing the need for careful monitoring of supply and demand. Lawler aims for dealers to carry 50 to 60 days' supply. He said excess supply could hurt pricing, though Ford hasn't yet been affected. "It worries me that the stocks are building," Lawler said. "One of the pitfalls you can run into, if you're pushing product out there that isn't necessarily what the consumer wants, it's really tough to move. Within Ford we call those ones with pink polka dots; not specced right. It hasn't been a contagion on us yet, we're still seeing strength, primarily because much of our product is new." Industry average days' supply reached 76 at the start of May. Lawler is transitioning to vice chair next year, focusing on strategic initiatives. Sherry House will replace him as CFO, bringing extensive experience from Lucid, Waymo, and General Motors. Ionna, an EV charging joint venture by seven U.S. automakers (BMW, General Motors, Honda, Hyundai, Kia, Mercedes-Benz, Stellantis) has announced its headquarters will be in Durham, N.C., and is expanding its leadership team to support its ambitious goals including former leaders from EV Connect, Rivian, Lucid. Headquarters in Durham, N.C., with a central lab connecting to interoperability and customer experience centers. Plans to install over 30,000 chargers by 2030 which is about 6000 per year. As a note, the most chargers that charging infrastructure leader Tesla has installed per year is 4000 to date The network will support both NACS and CCS connectors. Each station will include amenities such as restrooms, food service, and retail stores. "The network in the U.S., if you compare it to other parts of the world, clearly needs work," Stamatti said. "It needs Ionna, and it needs more Ionnas." Starbucks has announced the launch of Starbucks Studios, marking its entry into the film industry as it follows a trend of brands venturing into production. Christy Cain, the vice president of brand and partnerships marketing at Starbuck emphasised in a statement that Starbucks Studios is focused on producing content that f
Tue, June 11, 2024
Fain Under Fire, Open Letter to Elon, Apple AI
Shoot us a Text. It’s Tuesday, and we’re talking about how Shawn Fain is under investigation, how a letter suggests Tesla would be better off with the dealer network, and how Apple is embracing AI. UAW President Shawn Fain is under investigation for alleged retaliation against other union leaders, raising significant concerns within the organization. Independent federal monitor Neil Barofsky is investigating claims from UAW Secretary-Treasurer Margaret Mock, who alleges retaliation for her refusal to authorize certain expenditures. Fain also faces accusations of retaliating against Rich Boyer, leader of the union's Stellantis department. Fain took over Boyer’s duties at the end of May. Complaints alleged that the change came because Boyer refused to engage in acts of financial misconduct to benefit others, according to the court filing. Barofsky's probe began in February, and has faced document turnover delays. Only 2,600 of approximately 116,000 relevant documents have been reviewed, with the DOJ alleging that “[the Union’s position is] making it difficult, if not impossible, for the Monitor [Barofsky] to fulfill his mandate to remove fraud, corruption and illegality from within the UAW."” Fain’s response, “Taking our union in a new direction means sometimes you have to rock the boat, and that upsets some people who want to keep the status quo.” Haig Partners has published an open letter to Tesla CEO Elon Musk, urging him to consider a strategic partnership with dealers to propel Tesla into its next growth phase. They argue that such a partnership could transform Tesla's market position and profitability. Haig argues for the Advantages of Dealer Partnership: Buying Experience: Dealers provide in-person interactions, trade-ins, financing, and insurance. Service Improvements: More service centers reduce wait times and increase convenience. Higher Margins: Dealers can offer added benefits, allowing for higher vehicle prices. Capital Efficiency: Dealer networks require no investment from Tesla, freeing up capital. Support for Self-Driving Tech: Dealers can help deploy and maintain Tesla's robotaxi fleet. Apple’s WWDC keynote revealed major AI advancements for its devices, focusing on enhancing user experiences across various platforms. Apple Intelligence (AI): New personal intelligence system for iPhone, iPad, and Mac, emphasizing security and on-device processing. Siri Upgrade: Deep i
Mon, June 10, 2024
Costco Goes EV, REALLY Deep Employee Discount, Big Check For Auto Students
Shoot us a Text. It’s a fresh week and we’re talking about GM's strategy with Costco to boost EV sales, Fisker's aggressive move to sell the Ocean to employees at a discount, and Reynolds and Reynolds' $5 million donation to Northwood University for a new automotive studies center. Show Notes with links: General Motors is using its partnership with Costco to increase sales of its electric vehicles (EVs). GM is promoting EVs like the Chevrolet Equinox and Blazer through the Costco Auto Program. The partnership leverages Costco’s 50 million U.S. members with special pricing and discounts. Costco Auto acts as a facilitator, offering haggle-free pricing via franchised dealers. Members can get a $1,000 incentive on select GM EVs through July. Costco's affluent and loyal customer base, typically aged 42-59 with higher-than-average incomes, aligns well with EV buyer demographics. "Our membership has always liked new things, and EVs are absolutely new to the marketplace," said Jay Maxwell, Costco Auto Program general manager. In a new effort to sell some of their EVs, Fisker is selling its Ocean crossover to employees at a steep discount amid financial struggles and low sales. The Ocean is available in three trims: Extreme, Ultra, and Sport; only the latter two are offered to employees. The entry-level Ocean Sport for retail customers now starts at $24,999, down from $61,499. However, employees can buy the Ocean Extreme and Ultra for $20,000 plus additional fees. Fisker sold only 4,700 of the 10,142 units produced in 2023, far below its target. "We are beyond excited to help you join the Fisker Ocean Family," read the company's email to employees, despite the company's financial woes. Reynolds and Reynolds has pledged $5 million to Northwood University to support the new Center for Automotive & Mobility Studies. The donation will fund the construction of state-of-the-art facilities, including classrooms and a conference center. The new center will replace the NADA Hotel and Conference Center on Northwood’s campus in Midland, Michigan. An advisory council of automotive industry leaders will guide the center's governance. Reynolds and Northwood are partnering on a talent recruitment program for North
Sat, June 08, 2024
These Techs Fixed A Truck That Was Meowing...
Shoot us a Text. It's the second Saturday of June and writer Kristi Canada joins the show. Today, we're talking about how a West Herr dealership rescued a cat out of an engine compartment. Plus one of the service advisors adopted the cat and named him Diesel! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, June 07, 2024
Gas Over Electric, Senator Slams, Detroit Jams
Shoot us a Text. We’ve got that Friday feeling as we cover a new KPMG survey that reveals Americans powertrain preferences. We also talk about a Democrat Senator slamming a failed EV charging program, as well as an epic celebration as Ford opens its train station renovation. Show Notes with links: A recent KPMG study reveals that Americans still favor gas vehicles over hybrids or EVs, even when prices and features are the same. Only 20% of respondents would choose an EV over gas or hybrid vehicles. 60% of US consumers want EV charging times of 20 minutes or less, while 41% of auto executives think longer times are acceptable. Consumers prioritize safety, WiFi, and charging locators over self-driving features and in-car entertainment. The preference for gas vehicles persists despite a global push for EV adoption, causing automakers like Ford, GM, and Mercedes to rethink their EV strategies. Democratic senator Jeff Merkley has been very vocal in his criticism of the progress of a $5-billion U.S. government program to deploy EV-charging stations which has only seven EV-charging stations operating under the program that was initiated back in 2021. Senator Merkley has labeled the progress as a "vast administrative failure" and is calling for corrective action as he said "That is pathetic. We're now three years into this ... Shailen Bhatt, head of the Federal Highway Administration, acknowledges the slow progress and cites states dealing with multiple programs as a contributing factor. Merkley also criticizes existing rules that prevent EV-charging stations at rest stops. Energy Secretary Jennifer Granholm expects about 1,000 stations to be operational by year-end and are still aiming for 500,000 nationwide…there are currently about 183k Michigan Central Station's six-year makeover concluded with an all-Detroit concert produced by Eminem, drawing thousands to the historic venue. The concert featured performances by Jack White, Diana Ross, Big Sean, and other Detroit stars, celebrating the station's transformation. Eminem surprised the audience by performing with the Detroit Symphony Orchestra, followed by collaborations with Jelly Roll and Trick Trick. The show concluded with Eminem's hit "Not Afraid," as he expressed his love fo
Thu, June 06, 2024
Lithia Layoffs, Virginia Ditches Cali EV Standards, IKEA Pays Roblox Workers
Shoot us a Text. Thursday is upon us and we’re breaking down Lithia Motors' strategic layoffs aimed at saving $150 million annually, Virginia's decision to reverse its adoption of California’s strict EV standards, as well as IKEA hiring Roblox workers (you read that right). Show Notes with links: Lithia Motors is targeting $150 million in annual savings through strategic layoffs and other employee cost reductions, primarily focusing on U.S. positions. Senior Director of Finance Jardon Jaramillo described the cuts as "very targeted" rather than a broad reduction as he said "We're not announcing a mass layoff.” "These are changes at the store level," and gave examples including taking action on "underperforming general managers." The layoffs are part of a plan to eliminate $250 million in annual selling, general, and administrative expenses. Additional savings will come from reducing inventory and third-party service provider costs. Changes will include leadership adjustments at the store level, targeting underperforming general managers. They will also be laying off 6 of their 13 communications employees Efforts are also being made to improve storewide adoption of Lithia's online vehicle shopping platform, Driveway. The 60-day plan, launched in May, aims to impact Lithia’s financial results significantly in Q3. Virginia’s Governor Glenn Youngkin announced the state’s withdrawal from California's stringent EV standards, citing a lack of legal obligation and insufficient consumer demand. Virginia initially adopted California’s EV standards in 2021 under former Gov. Ralph Northam. Governor Youngkin argues that the government shouldn’t dictate vehicle choices, advocating for less strict federal emissions rules. Only 9% of vehicles sold in Virginia in 2023 were electric, reflecting weak consumer demand. The Alliance for Automotive Innovation supports the move, stating that California’s EV standards may not suit other states due to varying consumer demand. Environmental groups and Virginia Democrats criticized the move as undemocratic and potentially illegal. The Biden administration has granted automakers more time to comply with federal emissions rules, aiming for over half of new-vehicle sales to be electric by the early 2030s. "Virginians deserve the freedom to choose which vehicles best fit the needs of their families and businesses," said Youngkin. IKEA is launching a virtual store in Roblox and <a href='https://retailwire.
Wed, June 05, 2024
Suing the Treasury, High EV Repair Costs, Tesla Hires Geico Exec
Shoot us a Text. Welcome to Wednesday as we talk about the US Senator encouraging US automakers to sue the government… and win. We also talk about the higher-than-ice repair costs of EVs as well as Tesla’s move to curb them with a former Geico exec. Show Notes with links: U.S. Sen. Joe Manchin has urged manufacturers to sue the Treasury Department over its implementation of local content rules for clean energy tax credits under the Inflation Reduction Act (IRA). Manchin, now an independent, has criticized both major parties for "partisan extremism" and claims the Treasury's final rules halve the original content requirements in the legislation arguing that the rules harm U.S. manufacturers and allow continued reliance on Chinese materials. He highlighted that the rules permit automakers to use Chinese critical minerals for another year, which he says "breaks the law." Treasury Secretary Janet Yellen acknowledged the concerns and offered technical discussions to address them. Manchin stated, "I'm encouraging every manufacturer to sue you, and I will do the amicus brief on (their) behalf .... and you'll lose every suit." Repairing an EV is on average 30% more expensive than repairing an internal combustion engine vehicle, according to Q1 2024 insurance data. Here’s why. Average EV repair claim in Q1 2024 was $6,066, compared to $4,703 for ICE vehicles. EVs declared total losses at nearly the same rate as ICE vehicles (9.93% vs. 9.51%). The biggest cost driver is mechanical labor hours: 3.04 hours for EVs vs. 1.66 hours for ICE vehicles. Extra labor often involves managing high-voltage batteries, including de-energizing and removal. EVs rely more on new OEM parts (89.29%) than ICE vehicles (65.14%), leading to higher costs. Tesla Model 3 and Model Y are the top vehicles for repairable claims, followed by the Ford Mustang Mach-E. Tesla is taking a strategic step to reduce the high insurance costs for its vehicles by hiring a long-time GEICO executive. Allen Laben, a 20-year veteran of GEICO, joins Tesla as 'Head of Insurance Partnerships'. Tesla aims to make its vehicles easier and more economical to insure by partnering with insurance companies and collision shops. Laben's goal is to lower the total cost of Tesla ownership and support the transition to sustainable energy.</li
Tue, June 04, 2024
Record Auto Sales, Ford's Historic Renovation, Stamp Price Surge
Shoot us a Text. It’s Tuesday and we’re talking about strong May sales from major brands, Ford's $950 million renovation of Michigan Central Station and star-studded grand reopening concert, as well as another sign of the times…increasing stamp prices and why it matters, or doesn’t. Automakers are reporting strong U.S. light-vehicle sales gains for May, with a combined 10% growth among five reporting automakers, led by Toyota, Hyundai, and Kia. With the SAAR surpassing 16M for the first time this year Toyota: Sales climbed 16% to 216,611 vehicles, with a significant boost from hybrid and electric models, comprising 39% of sales. Honda: May sales rose 6.4% to 127,129 vehicles, driven by crossovers like the CR-V and HR-V, despite a slip in electrified vehicle sales. Hyundai: Achieved a 12% increase, with significant gains from eco-friendly models, though some top sellers like the Elantra and Tucson saw declines. Kia: Increased sales by 5% to 75,156 vehicles, with the Sportage and Forte leading the gains. Subaru: Reported a 7% sales increase, with the Crosstrek and Forester showing strong growth, and electric Solterra sales surging by 255%. Ford undertook an ambitious $950 million renovation of the historic Michigan Central Station in 2018 to create a mobility hub and attract tech-savvy employees. The project faced numerous challenges, including the pandemic and reclaiming stolen artifacts an is finally about to open its doors Ford bought the 18-story train station in 2018 for $90 million to house teams working on autonomous and electric vehicle technology. The six-year project involved 3,100 workers, restoring original architecture and sourcing materials from the original quarry. Ford reclaimed stolen artifacts, including original clock pieces and cast-iron rosettes, often negotiating with owners to buy them back. “Talent attraction is our No. 1 goal now… This Corktown area will do that,” said Bill Ford. The U.S. Postal Service has received approval to raise first-class mail stamp prices from 68 cents to 73 cents starting July 14. This hike is part of a broader strategy to address financial challenges. The Postal Regulatory Commission approved the 7.8% increase in mailing service prices. USPS aims to raise $44 billion in additional revenue by 2031 through its new pricing policy. The agency also seeks a 25% price hike for high-volume shippers using its Parcel Select service.
Mon, June 03, 2024
Toyota's Testing Trouble, Dealers In Powersports, and GM's EV Clutch
Shoot us a Text. It's a fresh week in a fresh month as we talk about Toyota's certification scandal, the booming trend of automotive retailers entering the powersports segment, and GM's innovative clutch pedal for EVs to win over driving enthusiasts. Show Notes with links: Toyota suspends sales of several models in Japan due to certification issues , amid a broader scandal involving multiple automakers and inadequate vehicle verification tests. Toyota halts sales of the Corolla Fielder, Corolla Axio, and Yaris Cross due to testing discrepancies. The issue involves using testing methods that differed from Japanese government standards for safety verification. Mazda, Honda, Suzuki, and Yamaha also face similar certification issues. The Ministry of Transportation labels the incidents as undermining user confidence although the vehicles are deemed safe to drive. Toyota Chairman Akio Toyoda apologized for the oversight, taking a deep, long bow of contrition. Automotive retailers are increasingly entering the powersports segment , attracted by the complementary nature and profitability of the industry. Powersports includes motorcycles, ATVs, snowmobiles, and personal watercraft. Automotive retailers like Sonic, Lithia, and Ed Morse Automotive Group are acquiring powersports stores. Profit margins for powersports can reach 10-12%, compared to 5% in automotive retail post-COVID. Harley-Davidson is particularly popular, with about 30 dealership sales per year. Teddy Morse, CEO of Ed Morse Automotive Group, owns eight powersports stores across Texas, Colorado, Missouri, and Florida. Morse formed Teddy Morse's Moto Co. to oversee the powersports segment and plans to acquire another store this year. Morse emphasizes the shared passion for riding among customers and employees: "There's a passion that goes along with that, that you just can't manufacture." He said said riding motorcycles "makes you feel like the star of your own movie." GM is developing a clutch pedal for its electric vehicles, aiming to enhance driving engagement and appeal to car enthusiasts. Car enthusiasts criticize EVs for lacking driving excitement due to one-pedal driving and no real gearbox. GM's new clutch pedal concept uses a hydraulic actuator to operate a clutch in EV transmissions. The actuator's pressure varies, controlled by a piston that adjusts clutch engagement for op
Sat, June 01, 2024
How To Support Your Community on Memorial Day
Shoot us a Text. On this first day of the month, we're talking about how the Veterans of Walser went to a local cemetery to refresh the graveside flags, plus we think about how dealers can be more involved in their communities on the holidays. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, May 31, 2024
Buick Rebounding, Creator of the Book, and Google Zero
Shoot us a Text. Day 2 with Cirillo and we figured some marketing wrap up was still in store. We are also taking a look at the much-talked-about Buick Envista and celebrating the life and accomplishments of Bob Kelley. Show Notes with links: Buick, GM’s semi-luxury brand, is experiencing a significant sales resurgence thanks to the new 2024 Buick Envista . Buick, celebrating its 125th anniversary, has a rich history of innovation and design. The 2024 Buick Envista is leading the brand’s sales increase, especially in the U.S. In 2023, Buick sold 167,000 vehicles in the US, moving it up just ahead of Cadillac among GM’s four brands in this market. Almost 70% of Buick buyers are new to the brand, indicating strong market appeal. "It sells faster than the vast majority of GM products," said Edmunds analyst Ivan Drury. Bob Kelley, former publisher of Kelley Blue Book , passed away at 96. Known for his humor and tech-savviness, Kelley led the publication's digital transformation. Kelley spearheaded Kelley Blue Book's transition from print to a comprehensive online resource, making car pricing information more accessible. Under his leadership, Kelley Blue Book expanded to include imports, trucks, motorcycles, RVs, mobile homes, and classic and collector cars, broadening its influence. Kelley began his career at the family-owned Kelley Kar Co., where he honed his skills in appraising and selling used cars before becoming publisher of Kelley Blue Book in the 1960s. According to his son-in-law Charlie Vogelheim, he had a sense of humor about the online transition and would say, “If you drop the book, it still works.” Cox Automotive, which acquired Kelley Blue Book in 2010, praised him as "a true pioneer in the automotive industry,” saying "Bob's impact has been immeasurable… His passion for informed decision-making will always guide us." Nilay Patel, editor-in-chief of the Verge, is challenging that ‘ Google Zero ,’ the moment when Google stops sending traffic to third-party websites, is here. Google Search has dominated the web ecosystem, driving traffic and ad revenue. Websites rely on Google Search, Chrome, and advertising technologies for their business models. Smaller sites like HouseFresh are struggling as Google changes its algorithms. HouseFresh managing editor Gisele Navarro detailed the impact on their traffic and business. “I often joke that The Verge is the
Thu, May 30, 2024
Sizing Up the EV Storyline, International More Than Cars, Google Gotcha
Shoot us a Text. Today we have Michael Cirillo, host of The Dealer Playbook, joining the show in Paul’s absence. We are breaking down the questionable narrative in the EV slowdown, a dealer that is taking the More Than Cars mentality international, and a Google leak that is shocking the paid and organic media industry. Despite recent headlines about an "EV slowdown," the overall electric vehicle market is still growing . While sales numbers vary across brands, the industry's progress continues, with certain automakers experiencing significant growth. Some brands show lower sales due to model gaps, not a market decline. Automakers like Hyundai and Ford saw YOY EV sales growth from 56% to 86%. Currently Hyundai, GM and Ford are all on pace to sell more than 100k EVs for the first time in a calendar year. Analysts suggest that lower Tesla sales create opportunities for other EV makers. Political polarization impacts EV adoption, with 63% citing China's dominance in the EV supply chain as a concern. The EV market remains divided, with differing brand performance and consumer attitudes. “We’re still seeing growth in demand, just not at the same pace for every brand,” said Stephanie Valdez-Streaty, director of industry insights at Cox Automotive. Vermont dealer Faith Mba is not only succeeding in the automotive business but also giving back to his homeland , Nigeria. His efforts have led to the creation of a new school, providing much-needed educational resources. Faith Mba immigrated to the U.S. in 2004 and began his career in the car business soon after. He is currently constructing a 37,000-square-foot Toyota-Ford dealership in Westminster, Vermont. Meanwhile, halfway across the world, Mba has built the six-classroom Mgbala Elementary School in eastern Nigeria, located in Mba's father's hometown, where Mba noticed 200 children studying in a dilapidated two-room school. Managed remotely with the help of a local family member, Mba and his wife funded the project themselves after struggling to secure tax-deductible donations. The new school includes a well for clean water, a significant upgrade from typical local schools which often lack basic amenities. "I look at it as something to carry on [my father's] legacy," Mba told Automotive News. "I decided to build it for the children because they are the leaders of tomorrow." Google has confirmed the authenticity of 2,500 leaked internal
Wed, May 29, 2024
BYD’s 2000km Hybrid, Toyota’s Next Gen ICE, Gen Z Summer Jobs
Shoot us a Text. Happy Hump Day as we’re halfway through the week! Today we’re covering a BYD hybrid that can drive from NYC to Miami on a single charge/tank, how Toyota and other OEMs are decarbonizing with ICE and why Gen Z is getting summer jobs. Show Notes with links: BYD has introduced a groundbreaking hybrid powertrain capable of exceeding 2,000 kilometers (1,250 miles) on a single charge and full tank, marking a significant advancement in hybrid technology. The new hybrid powertrain was unveiled during a live-streamed event from China. BYD's dual-mode plug-in electric hybrids can now travel distances comparable to New York to Miami or Munich to Madrid without needing to recharge or refuel. This development highlights BYD's progress over five generations of hybrids since 2008. BYD sold three million cars last year and delivered nearly one million cars by March this year. For every two hybrids sold in China, one is a BYD. Toyota Motor has unveiled next-generation engines designed for various car types, including hybrids and biofuel vehicles. This move targets stricter emissions standards and reflects Toyota's diversified approach beyond just EVs. Toyota, Subaru, and Mazda displayed new 1.5L and 2.0L engines that are more compact, reducing volume and height compared to current models. The new engines aim to integrate with electric components for decarbonizing internal combustion engines, making the new engines compatible with alternative fuels like e-fuels and biofuels. "With these engines, each of the three companies will aim to optimize integration with motors, batteries, and other electric drive units," the companies stated. Gen Z is reversing the decline in teen employment , bringing back a key rite of passage for adolescents. Teen labor force participation, once nearly 2 in 3 in the 1980s, has recently hit a 14-year high at 38%. Rising wages, inflation-driven necessity, and high demand in retail and restaurant jobs are driving this trend. In the coming weeks, employers are expected to add another 1.3 million summer jobs for teens, according to the firm Challenger, Gray & Christmas Psychologist and author Jean Twenge highlights how teen jobs teach crucial life skills, saying “There is something lost w
Tue, May 28, 2024
Ford's EV Policy Shift, Politics of EV Adoption, and Bass Pro's Affordability Focus
Shoot us a Text. It’s Tuesday and we’re talking about Ford lifting restrictions on which dealers can sell EVs, the political divide impacting EV adoption, and Bass Pro Shops' is the next retailer leaning affordability amid inflation. Show Notes with links: Ford is set to undo a key element of its EV certification program, opening EV sales to its entire U.S. retail network following backlash and lawsuits. Ford plans to reopen EV sales to its full U.S. retail network after feedback from 11 in-person dealer meetings and extensive pushback. Initially, EV sales were limited to dealers making significant investments in chargers and training, which led to criticism and lawsuits from over 400 dealers and state associations. Dealers argued the restrictions were unfair and potentially illegal, with lawsuits claiming Ford could not legally prevent some dealers from selling its products. Lisa Drake, VP of EV programs, stated the goal is to involve more dealers and reduce certification requirements, aiming for a more inclusive approach saying, "We'll be more ubiquitous with our training and make sure essentially all of our dealers are equipped to sell them." Attorney Rich Sox, representing dealers in New York, emphasized, "This is about making sure all dealers have access to EVs and not being pigeonholed into one of three categories the program arbitrarily created." As automakers push their electric vehicles, some consumers resist for political reasons , highlighting a growing challenge in the EV market. Many consumers oppose EVs due to political and ideological reasons, complicating automakers' efforts. A Morning Consult poll found about 40% of Americans have an unfavorable view of EVs, with 38% citing political views and 63% concerned about China's dominance in the EV supply chain. Conservative consumers often criticize public subsidies for EVs and regulations steering them towards electric cars, contrasting with liberals who support EVs for environmental reasons. Kia's Steven Center acknowledges EVs as a hot-button issue: "You know that old saying, ‘Don’t talk about religion or politics?’ I think you can add EVs to that." Mike Murphy, a Republican strategist, noted, "There is a hearts-and-minds resistance to EVs, mostly on the Republican side. If you can’t break down that tribalism, the industry isn’t going to sell enough EVs." Bill Wallace, a South Florida car dealer, noted that about one-third of his customers express adamant opposition to EVs, viewing them as government control. "
Mon, May 27, 2024
Memorial Day Memories and Maneuvers with Todd Caputo
Shoot us a Text. We’re thankful for our nation on this Memorial Day 2024 as we reflect on all that have given their lives as a member of the US Armed Forces. Today, we’re talking about Memorial Day (and other holiday) sales strategies with the one and only Todd Caputo. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Sat, May 25, 2024
When 96% Of A Dealership Wants Their Friends To Work There Too
Shoot us a Text. We're kicking off Memorial Day weekend with a great story about two dealer groups being named in the top 50 best places to work by none other than Glassdoor. And that's sayin something. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, May 24, 2024
Memorial Day Deals, Musk's Trade Flip, and California's Speed Beep
Shoot us a Text. We’re heading into a huge sales weekend and we’re talking big Memorial Day discounts on 2023 cars, Elon Musk's reversal on Chinese EV tariffs, and California's new bill requiring cars to beep when speeding. Show Notes with links: Edmunds reported that 2023 model year vehicles on U.S. lots rose to 6.8 percent in May. With higher inventories and many 2023 cars and trucks, Memorial Day weekend may be the ideal time to buy for some shoppers, but it depends on the brand May saw an increase in the share of 2023 models on lots, rising to 6.8%. Average new vehicle incentives expected at $2,640 in May, up 48% from last year. Dodge had the highest concentration of 2023 models, offering discounts averaging $6,753. "If you look at Honda, Toyota and Subaru, our days' supply are all under 30 still," said Joey Huang, president of Great Lakes Auto Group. "We're all still begging for inventory. We're selling more than we can get." Average new-vehicle loan interest rate projected at 7.1%, with special financing offers like Tesla's 0.99% on the Model Y standing out. Most dealerships anticipate high sales traffic over the holiday weekend due to increased promotions and warmer weather. Tesla founder Elon Musk reversed his stance on U.S. tariffs on Chinese electric vehicles, now opposing measures he once supported. Musk, previously in favor of tariffs, now opposes them, calling market distortions "not good." The Biden administration quadrupled EV tariffs to over 100%, affecting $18 billion in Chinese goods. "Neither Tesla nor I asked for these tariffs... I’m in favour of no tariffs," Musk said at Viva Technology. Musk went on to state that Tesla competes well in China without tariffs or special support. Back in January, Musk warned "If there are no trade barriers established, they will pretty much demolish most other car companies in the world.” California has passed a bill to combat speeding by requiring new cars to alert drivers when they exceed the speed limit. The bill, SB 961, mandates passive speed limiters in new cars, starting with 50% by 2029 and 100% by 2032. These systems use GPS and a database of speed limits to issue visual and audio warnings when exceeding the limit by more than 10 mph. The regulation will apply to all passenger vehicles, including trucks and buses, but will not physically prevent speeding. Similar m
Thu, May 23, 2024
Young Buyers Eye Chinese EVs, Kia's EV SUV, Mobile Superchargers
Shoot us a Text. It’s a busy Thursday as we roll towards the holiday weekend. Today, we explore the surprising interest in Chinese EVs among young Americans, Kia's launch of a new compact electric SUV amid cooling EV demand, and Yoshi Mobility's innovative mobile fast charging solution for EVs. Show Notes with links: A recent survey by AutoPacific reveals that younger Americans are increasingly open to purchasing vehicles from Chinese brands, despite privacy worries. 35% of respondents aged 18 to 80 would consider a Chinese car. 76% of those under 40 are open to buying a Chinese vehicle, compared to only 26% of those over 60. Ed Kim, President of AutoPacific, attributes this trend because it's easier to see what’s happening in other parts of the world, saying “Social media has simply just made the world a lot smaller,” Privacy concerns are significant, with over 70% of respondents expressing worry across all age groups. Manufacturing Chinese vehicles in the U.S. could increase purchase willingness among 16% of respondents. "[Negative] political connotations associated with China just don't apply to younger people," said Kim Kia has introduced its first compact electric SUV , the EV3, built on its dedicated EV platform, aiming to attract buyers with competitive pricing despite a cooling global EV market. The EV3 is part of Hyundai Motor Group's plan to introduce over 31 electric models by 2030. The EV3 will be priced between $35,000 and $50,000 and offers two battery options with a long-range model capable of 600 kilometers (373 miles) on a single charge. Kia plans to achieve an annual sales target of 200,000 units worldwide, although they declined to say what year that target is for. Kia aims to sell approximately 1.6 million EV units by 2030. "We are making the EV3 very much accessible to our customers with the pricing level that customers are expecting for our vehicle," said Kia President Song Ho Sung. Yoshi Mobility has launched a mobile DC fast charging unit , dubbed "a supercharger on wheels," to address the need for convenient EV charging where infrastructure is lacking. The 240 kW mobile DC fast charger can provide multiple charges in a single trip. It is mounted on GM BrightDrop Zevo 600s, with more vehicles to be added through 2024. Initial customers include “major OEMs, autonomous ve
Wed, May 22, 2024
Vehicle Ages Peak, Political Jabs Fly, and Gen Z Seeks Balance
Shoot us a Text. Welcome to Wednesday as we discuss the rising age of vehicles in the U.S., political attacks in Ohio's Senate race targeting a former car dealer, and how Gen Z workers' values align closely with those of their older colleagues. Show Notes with links: The average age of vehicles in the U.S. has climbed to a record 12.6 years, with the total number of vehicles in operation increasing to 286 million as of January 2024. The average vehicle age rose by two months from the previous year, continuing a seven-year trend. Only 88 million vehicles were 1 to 5 years old in January 2024, down from 90.3 million in 2023. There are 110 million vehicles in the prime aftermarket service range, aged 6 to 14 years. Factors driving the increase include better vehicle quality, high prices, COVID-19 impacts, and hesitancy to buy EVs. Todd Campau of S&P Global Mobility noted, "Really, the main driver was the pandemic and the supply chain" . Ohio Sen. Sherrod Brown's new ad targets Republican challenger Bernie Moreno's past as a car dealer, sparking backlash from auto dealers who support Moreno's campaign. Brown's ad claims Moreno was untrustworthy as a car dealer and shouldn't be trusted as a senator. Auto dealers argue Brown's comments insult the hardworking employees in the auto sales industry. Tim Glockner of Glockner Chevrolet stated, "Sherrod Brown's comments are a slap in the face to hardworking Ohioans in the auto sales industry." Moreno, endorsed by former President Trump, has become the Republican nominee in a highly competitive race. "Thousands of Ohioans are employed in various capacities across the auto industry, and our senior senator chose to mock our jobs on the airwaves," said Joseph Chapman of Chapman Ford Contrary to popular belief, Gen Z workers have many of the same aspirations and values as their older colleagues, focusing on decent salaries, meaningful work, and work-life balance. A study by Seramount found that Gen Z workers value work-life balance and flexibility, with a desire to be in the office for the social interaction and learning…but maybe not everyd
Tue, May 21, 2024
Nissan Shocks, Leaders that Rock, High-Income Flock
Shoot us a Text. It’s Tuesday and we’re talking about Nissan’s strategic shift in U.S. EV production, the recognition of Hendrick and Zeigler Auto Groups as best-run companies, and Walmart’s unexpected appeal to higher-income shoppers. Nissan is revising its U.S. electric vehicle production strategy, putting a $500 million investment in its Mississippi factory on hold. The company plans to adjust its EV lineup and production schedule to better align with customer demand. As a result, the company is halting production plans for its next-gen EV sedans, delaying a $500M investment in Mississippi. In a memo to suppliers dated May 17th, Nissan wrote "Please stop all development activities related to [the EV sedan] project until further notice.” in order to "enhance product competitiveness." Nissan plans to introduce a fifth EV model at the Canton plant, a compact crossover codenamed PZL1. Now the plan is to have two crossover models that will precede the sedans in the EV lineup. Jérémie Papin, Nissan Americas Chairperson said "What matters is making sure that we launch the vehicles that the customer wants, at the time the customer wants it." This week, two large dealer groups were recognized with prestigious awards for their outstanding performance and leadership as Zeigler Auto Group and Hendrick Automotive Group were selected for Glassdoor’s inaugural list of Best-Led Companies. The 50 businesses on the 2024 list were chosen based on CEO approval, senior management ratings, and leadership sentiment. Hendrick ranked 13th and Zeigler ranked 30th on the list. Zeigler Auto Group has a 4.7-star rating on Glassdoor, with 96% of employees recommending the company to a friend. Aaron Zeigler, Zeigler Auto Group CEO: "We are fortunate to have a good group of strong leaders who are innovative and hard-working." Hendrick Automotive Group employs nearly 11,000 employees and has a 4.3-star rating on Glassdoor, with 84% of employees recommending the company. Christian Sutherland-Wong, Glassdoor CEO: "This award showcases those shining examples of companies where senior leadership is putting work-life and people first." Walmart's recent financial results show a significant rise in purchases from higher-income shoppers , contributing to the retail giant's sales gains in the first quarter of 2024. Walmart CFO John David Rainey reported higher engagement across all income cohorts, with upper-income househo
Mon, May 20, 2024
Used Car Only List, UAW Takes a Beating, Gen Alpha Influencers
Shoot us a Text. We’re coming in hot after an insane ASOTU CON as we dive into Carvana's recovery in 2023, the UAW's setback at a Mercedes plant, and how Gen Alpha kids are shaping their parents' buying decisions. Show Notes with links: Automotive News’ second ever Used Only List reiterates that 2023 was a pivotal year for used-vehicle-only retailers , with CarMax still in front, Carvana recovering its position despite numerous challenges, and some other players falling off the board. CarMax tops the list again, selling 765,572 used vehicles, down 5.2% from the previous year. Carvana sold 312,847 used vehicles in 2023, down 24%, but focused on profitability. Vroom and Shift Technologies faced significant setbacks, with Shift filing for bankruptcy and Vroom winding down operations. DriveTime Automotive saw a 7.2% increase, selling 110,027 used vehicles. Sonic Automotive’s EchoPark increased sales by 15%, selling 73,676 vehicles. Carvana CEO Ernie Garcia said, "We were not super well positioned to handle all of that change, nor were many of our peers." The UAW faced a significant setback as 56% of workers at the Mercedes plant in Alabama voted against unionization, marking a blow to the union's efforts to organize more Southern facilities. Over 90% of the factory's 5,000 eligible workers voted, with 56% opposing the union with Mercedes officials actively campaigning against unionization, presenting their plans to address employee concerns Mercedes worker Melissa Howell said, "We have the company’s ear, for the first time in a long time." Another worker, Rick Webster, said, "The No. 1 issue for me is a better work-life balance." The defeat is a major setback for UAW President Shawn Fain, who has revitalized the union with a combative approach. The UAW plans to continue its $40 million organization drive targeting various factories, including Hyundai and Toyota plants. UAW President Shawn Fain said, "While this loss stings, these workers keep their heads held high. We fight the good fight and continue forward." Gen Alpha, children aged 8 to 13, may not be the foremost generation on every brand’s radar yet, but it’s time retailers start thinking about them and their interests. Here are the numbers according to a new survey conducted by DKC’s analytics group: 95% of Ge
Fri, May 17, 2024
Oops, We Missed A Day with Special Guest Steve Greenfield
Shoot us a Text. ASOTU CON is over, and we forgot to release yesterday’s live episode from the Main Stage with Steve Greenfield. Fortunately we’ve got it here for you today, and we’ll be back to our regularly scheduled programming next week. Show Notes: Steve Greenfield highlights Qatar's forward-thinking approach despite its vast oil reserves. Qatar invests heavily in autonomous and electrification technologies. Observations from Amsterdam contrast livability with license plate scarcity. Potential for level 5 autonomy is high in countries like China and the Middle East. Challenges in the U.S. include weather conditions and the need for 5G connectivity. EV industry faces margin compression, slow adoption, and potential overcorrections. Qatar aims to be the first country to achieve 100% electrification and autonomy. Thank you to Reynolds and Reynolds and Gubagoo for being the presenting collaborators of ASOTU CON. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, May 15, 2024
ASOTU CON is FINALLY HERE!
Shoot us a Text. Welcome to Day 1 of ASOTU CON! Paul, Kyle and Michael are here with everything you need to know. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, May 14, 2024
Biden’s Big Tariffs, Dealership Delivery Lounge, and TikTok AI
Shoot us a Text. We. Are. HERE! Tonight hundreds of industry friends will descend on lower Baltimore (upper Annapolis) to kick off ASOTU CON at the welcome reception. But first, we have a few things to chat about; Big Tariffs from Biden, an employee-only dealership experience, and TikTok is now Google. With the pressure mounting from Chinese EV imports , the Biden administration has quadrupled the tariff on EVs and doubled many other import products. The changes are designed to reinforce domestic industries and counteract unfair Chinese trade practices, with implementation staggered from 2024 to 2026. From the article: “The levies aim to counter China’s rush into so-called legacy chips, which are older-generation components that are still essential to the global economy. The Biden administration recently concluded a survey of more than 100 auto, aerospace, defense and other companies about their supply chains for those less-advanced semiconductors, and the EU is considering launching a similar review of its own.” Treasury Secretary Janet Yellen stated, "We will not tolerate surges of certain artificially cheap Chinese imports on American communities," emphasizing the ongoing effort to address trade imbalances. One of the first Toyota retailers, family-run Toyota of Greensboro established in 1965, has long been a busy retailer in the Southeast, selling hundreds of vehicles monthly. Recently, Toyota announced a new $13.9 billion battery complex nearby, set to employ over 5,000 local people and offer them exclusive discounts on new vehicles. so Toyota of Greensboro is opening a dedicated , high-end delivery and service center, just for those employees. Toyota of Greensboro is spending nearly $2 million to revamp a former used-car center into an exclusive service and delivery hub for Toyota employees. The new facility will feature a 10-bay service center and amenities like a pool table, refreshments, and a high-end lounge area. Mary Rice, 3rd generation dealer principal at Toyota of Greensboro said, "Everything I've had my whole life is due to Toyota... this is an opportunity to give back to the company.” TikTok is leaning into search results by integrating generative AI into their platform, called "AI Smart Search." The platform’s approach aims to cater to younger users who increasingly rely on TikTok for search needs over traditional engines. AI-generated responses now
Mon, May 13, 2024
Kicking Off ASOTU CON Week w Special Guest Greg Uland VP Marketing for Reynolds and Reynolds
Shoot us a Text. ASOTU CON is TOMORROW! Today we have Greg Uland, VP of Marketing for Reynolds and Reynolds on to talk about what you can expect at ASOTU CON, how Reynolds and Reynolds is partnering with ASOTU to show a More Than Cars Promo at the Indianapolis Motor Speedway and why dealers are focusing on Used Cars for the rest of the year. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Sat, May 11, 2024
The Above and Beyond of ASOTU CON
Shoot us a Text. We're excited because ASOTU CON is only 2 days away! Today, Chris Reeves and Kristi Canada take over the show to cover what to expect beyond the sessions and content. They're joined by Head of Community Jordan Cox and Director of Events and Entertainment Al Cutri. They cover the receptions and happy hours, the ASOTU CON Recharge Lounge, a book corner and more! We hope to see you in Baltimore! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, May 10, 2024
Nissan Goes Sub-Invoice, 150 Hybrids Rising, 1st eVTOL Passenger Test
Shoot us a Text. Four days away from ASOTU CON we’re talking about Nissan’s move to push Dealers to advertise below invoice. We also talk about the growing percentage of F150 Hybrids being sold, as well as the very first passenger test of an eVTOL in Abu Dhabi. As a triple digit days supply grows, Nissan is taking an unprecedented step to clear overflowing inventories by allowing dealers to advertise 2024 vehicles up to 10% below invoice, a first since the pandemic, with the Armada being advertised as low as 15% below. Dealers however, are concerned, feeling the burden of moving the vehicles has been shifted from Nissan to them, as Nisaan pulls back on direct incentives. "Nissan is saying, 'We can't afford to be in the market, so you need to be,' " said one of several retailers interviewed, who requested not to be identified for fear of retaliation from the automaker. "The responsibility has been moved from the factory to us." With high floorplan costs, some dealers welcome the opportunity for more pricing flexibility to increase store traffic and reduce inventory. This aggressive pricing strategy could hurt Nissan's brand value long-term, mirroring problematic practices from the last decade. Many plan to use below-invoice pricing selectively, boosting profitability through finance, insurance deals, and upselling on features. "This move provides more flexibility when warranted," says Nissan spokesperson Brian Brockman, highlighting the company's adaptive strategy to current market conditions. Ford is significantly increasing its production of hybrid vehicles, with CEO Jim Farley announcing that 20-25% of F-150 pickups are now hybrids. Following a freshening of the F-150 lineup, Ford aims to make the model the nation's top-selling hybrid. Hybrid sales overall have risen 47% in early 2024. Farley emphasized the importance of offering customers a choice between gasoline, hybrid, and electric vehicles, acknowledging slower-than-expected EV adoption. Ford is exploring advanced battery technologies like semisolid-state batteries, promising enhancements in the mid-2020s. Despite postponing some EV investments, Ford remains committed to electrification, with Bill Ford expressing continued enthusiasm for the segment. Further emphasizing their position, CEO Jim Farley said,"Our key strategy as a company is to give customers choice." eVTOL maker EHang recently made <a href='https://electrifynews.com/news/air-water/ehang-makes-history-with-first-passenger-carrying-evtol-demo-flight-in-abu-dhabi/
Thu, May 09, 2024
Ford Rethinks 2030 (Again), Tesla's 2-way Advantage, Malibu Sunset
Shoot us a Text. Five days out from ASOTU CON we’re talking about Ford’s re-think of EV strategy in Europe of all places. We also talk about Tesla’s advantage in bi-directional charging, as well as an homage to an iconic mid-sized grocery getter. Show Notes with links: Earlier in the week it was the Lincoln brand and now Ford is pumping the brakes on its all-electric pledge for Europe by 2030, adjusting to the slower-than-expected uptake of EVs across the continent. Ford originally committed in 2021 to sell only electric cars in Europe by 2030, outpacing EU emissions goals. Now, they might extend sales of ICE vehicles if demand persists as the company reports a "softer" demand for EVs than anticipated, prompting a reevaluation of their strategy To this point, Ford has invested $2 billion in converting its Cologne, France factory for electric vehicle production, with new electric models set to launch soon. In response to the U.K.'s strict ZEV mandate, Ford plans to limit ICE vehicle sales rather than incur losses on forced electric sales. Martin Sander, head of Ford's passenger cars business in Europe said, "We are not going to pay penalties. We are not going to sell electric vehicles at huge losses just to buy compliance." Tesla is enhancing its competitive edge with a new bi-directional charging technology , setting the stage for significant advancements in its energy business. Tesla is introducing bi-directional charging with the Cybertruck, offering this technology at significantly lower prices compared to competitors like GM. The company is showcasing higher profitability in its energy sector than in automotive, with expectations to boost energy storage deployments by at least 75% this year. Utilizing its Autobidder platform, Tesla is optimizing energy usage across its products, potentially transforming every car into a mini power station. However, Tesla's bi-directional charging could disrupt its own Powerwall sales, as the technology allows vehicles to supply power back to the grid. Quote from Vaibhav Taneja, CFO of Tesla: "We are aiming to exploit the significant storage capacity with an expected increase in energy storage deployments by at least 75% this year." We’re ending the show today with a fond farewell to a vehicle that started off as cool and muscle-ly but then developed a utilitarian dad-bod as GM is
Wed, May 08, 2024
Toyota’s Profits, Tesla’s Paywall, GM’s Intern Plan
Shoot us a Text. We’re 6 days from the start of ASOTU CON and we’re talking about Toyota’s plateau plans to invest all of that profit. We’re also covering Tesla’s ‘pay to unlock range’ on some Model Y’s as well as GMs efforts to recruit displaced Tesla interns. Show Notes with links: Toyota's CEO Koji Sato is celebrating a triumphant first year with record-breaking profits , setting the stage for massive investments in future technologies. The company’s operating profit soared 77% this quarter, with plans to re-invest $11.24 billion into electrification, AI, and software advancements and $2.6B in shoring up their supply chain. This investment is the cause for Toyota’s forecasting a dip in profits for the fiscal year ending March 2025, prioritizing sustainable long-term growth. Toyota achieved a stellar 10% operating profit margin this quarter, with global revenue up 14% to $73.17 billion with sales of Toyota’s hybrids, which are as profitable as gasoline models, spiked by 32%, with hybrids now making up a third of global sales. CEO Koji Sato stated "We need this time of plateau for our long-term future growth. We would like to make proactive efforts for future sustainable growth." Tesla has introduced a "pay-to-unlock" feature for RWD Model Y owners, offering up to 60 additional miles. The update aligns older Model Ys with the new 320-mile range of current models, addressing slow sales in the first quarter. Tesla sets the price to unlock additional range on RWD Model Y vehicles between $1,500 and $2,000, targeting recently built models. Vehicles eligible for the upgrade are those made in the last few months with the same nickel batteries and charging curves as the Long Range Model Y. While beneficial for long trips, the cost-effectiveness of the upgrade is less clear for city drivers due to the high price. When explaining the strategy behind the new feature amidst regulatory challenges, Elon Musk candidly quipped "We have to pay the bills somehow." GM seems to be seizing an opportunity amid Tesla's staff cuts, actively recruiting interns displaced by Tesla's recent downsizing efforts, offering roles in software development as part of its strategic talent acquisition. Laura del Amo from GM extended an invite via LinkedIn to those affected by Tesla's internship program cuts. Del Amo stated "We believe in the strength of our automotiv
Tue, May 07, 2024
A New Autonomy, A New Charging Network, R-Apple?
Shoot us a Text. It’s Tuesday and we’re just getting started as we talk about a new entrant to the autonomy game. We also cover Rivian’s new charging network plans as well as a rumored potential partnership with Apple. Show Notes with links: Wayve Technologies, a pioneering self-driving car startup, has secured over $1 billion in investment to enhance AI-based autonomous driving solutions for the automotive industry. The impressive funding round includes major players like SoftBank, Nvidia, and Microsoft, aiming to boost AI capabilities in vehicles. The funds will fuel Wayve’s global expansion, enhance data diversity, and strengthen partnerships, pushing the frontier of driving automation. Wayve's unique 'embodied AI' allows cars to understand and learn from human behavior, improving interaction and safety in unpredictable driving conditions. SoftBank's Kentaro Matsui said,"Vehicles can now interpret their surroundings like humans, enabling enhanced decision-making that promises higher safety standards," U.K. Prime Minister Rishi Sunak praised the investment, underscoring Britain's growing influence in the global AI industry. Rivian has announced a next-gen charging network prototype designed to service all EVs, positioning itself as a key player in expanding EV infrastructure. The new charging stations feature a taller profile and longer cables, accommodating various EV charging port locations, including vehicles with NACS ports using adaptors. Rivian does plan to integrate the new SAE J3400 universal NACS ports into their network. The Rivian Adventure Network will extend its reach, supporting EVs with both 400- and 800-volt systems along key travel routes. Paul Frey, VP of Battery, Charging, and Adventure Products said, "By broadening access to our Rivian Adventure Network — powered by 100% renewable energy — we are supporting both of these critical goals while also encouraging more people to embark on their next adventure in an EV." Rivian is set to begin retrofitting existing locations with the new chargers later this year, including special versions for vehicles towing trailers. Now this is a little more on the side of a "rumor" at this point, but Apple may not have shelved its electric vehicle dreams entirely, with new whispers suggesting a potential partnership with Rivian. After halting its own Project Titan, Apple is reportedly exploring collabora
Mon, May 06, 2024
Who’s Responding to Leads, Caddy Considerations, Mario Kart For Seniors
Shoot us a Text. Welcome to a fresh week as we review the new report that talks about which groups are responding to leads well. We also talk about Cadillac’s rethink of its all-EV pivot by 2030, as well as a new, all weather, all terrain, scooter for Seniors and beyond. Napleton Auto Group has secured the top spot for the third consecutive year in the 2024 Pied Piper PSI® Internet Lead Effectiveness® Study , leading the way in responding to online customer inquiries. Berkshire Hathaway ranked second, Herb Chambers and Ken Garff tied for third.s The study ranked eighteen major auto dealer groups, evaluating their responses to web-generated customer inquiries via email, phone, and text within 24 hours. Fran O’Hagan, CEO of Pied Piper says, "Top performing dealerships focus on their behaviors, but they also carefully track what their website customers are really experiencing." Napleton excelled, with 84% of its dealerships scoring above 80, highlighting their efficient and personal customer engagement. The industry average ILE score rose to 66 (from 58 in 2023 and 55 in 2022) reflecting improvements in quick and multi-channel responses to online inquiries. Ganley Automotive showed the most improvement YoY at 21% moving from 61-74 while, Serra Automotive, and Berkshire Hathaway also showed notable improvements. The four groups that saw declines are Hendrick(-5), Penske(-8), Morgan(-10), and Victory (-15) Cadillac is rethinking its all-electric future , despite earlier commitments to an all-EV lineup by 2030 as the brand is now planning to keep gas vehicles in its range to meet diverse customer demands. Cadillac's VP, John Roth, announced last week that both electric and internal combustion engines will coexist beyond 2030, offering "luxury of choice" to consumers. The company's earlier stance of going fully electric by the decade's end has shifted, influenced by slower-than-expected EV market growth and consumer preferences. In 2020, Cadillac pushed dealers to invest heavily in EV infrastructure; about 20% opted for buyouts rather than comply. You've seen electric cars, you’ve seen fully covered electric motorbikes, you've seen.. whatever the Cybertruck is... Now! Get ready to see the future of the retirement community. Avvenire has introduced the Tectus AWD Electric Mob
Sat, May 04, 2024
Creativity At The Core
Shoot us a Text. First Saturday of the month! Today, Kyle is joined by Chris Reeves, Jordan Cox and Nathan Southwick to discuss the upcoming silent auction for Vehicles for Change at ASOTU CON and the custom guitar we've designed to give away. Plus, we cover why creativity is at the center of everything we do, and how we leverage it to be more effective. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, May 03, 2024
Rivian Grows Normal, Indie Service Creeps on Franchised, Food Junk Fees
Shoot us a Text. It’s the first Friday in May as we talk about Rivian stepping up their presence in Normal, IL. We also cover the latest JD Power report regarding the service department as well as Cali taking aim at junk fees…for food. As Tesla cuts jobs, EV startup competitor Rivian is set to expand its Normal, IL plant , adding over 500 jobs to produce the new R2 crossover, leveraging a significant $827 million incentive package from the state. The Illinois deal is not a cash infusion, but includes $75 million from a deal-closing fund and $634 million in tax incentives over 30 years, with a commitment to maintain at least 6,000 jobs. This move diverts from an initial plan to build in Georgia, aiming for quicker market entry and saving $2.25 billion by consolidating production in Illinois. The company adds that it has invested $2 billion in Normal which has generated $3.9 billion of “value add” for the local economy. Rivian CEO R.J. Scaringe said, "Gov. Pritzker has always been a strong advocate for providing economic opportunities for Illinois residents and business owners alike," J.D. Power's 2024 studies highlight aftermarket services gaining on franchised dealerships in customer satisfaction, driven by easier access and quicker service. "This is a key opportunity for aftermarket providers to not only compete with franchised dealers on price but also to add customer value with a quicker and easier service experience," noted Leonard Martin from J.D. Power. Younger customers, particularly Gen Z, report lower satisfaction levels with aftermarket services; J.D. Power suggests enhancing advisor interactions to build trust and loyalty, emphasizing the potential for aftermarket providers to secure long-term customer relationships through satisfying service experiences. Providing photo or video documentation of recommended repairs significantly increases customer approval for the work: 51% of customers who receive such documentation proceed with the suggested repairs, compared to only 24% who do not receive this visual confirmation. However, franchised dealerships were rated as more trustworthy in areas such as utilizing technology to enhance service efficiency and their capability to handle complex vehicle repairs, showing higher customer trust and satisfaction scores in these specific aspects compared to aftermarket service providers. Starting July 1, California mandates the <a href='https://retailwire.com/california-restaurants-must-st
Thu, May 02, 2024
Carvana’s Best Yet, Hertz Dumps More EVs, Delorean Dispute
Shoot us a Text. It’s Thursday and we’re talking about Carvana’s best performance ever. We’re also discussing Hertz’s decision to sell more of it’s EV inventory, as well as a wild story about the ongoing dispute around the legendary Delorian. Carvana’s latest earnings are signaling a substantial turnaround with a net income of $49 million in Q1, a 17% increase and a significant recovery from a $286 million loss in the same quarter last year. Shares soared by 37% in premarket trading. The Q1 net income of $49 million, marking a major shift from last year's $286 million loss. The figure includes a $75 million gain from stock warrants in Root Inc. Without that, there would have been a $26 million loss posted. Still, the best results in the history of the company. Carvana sold 91,878 used vehicles, an increase of 16% year-over-year, signaling robust demand for its online vehicle retail model. Despite strong sales, inventory shortages continue, with vehicles listed for an average of 13 days on its website before purchase. CFO Mark Jenkins noted that the inventory situation is limiting sales volumes and the company plans to increase production to enhance vehicle selection for customers. "This quarter validates our belief in the potential of online retail to drive industry-leading profitability and customer experiences," said CEO Ernie Garcia. Hertz is set to offload 30,000 electric vehicles from its fleet due to " substantial depreciation " and escalating maintenance costs, highlighting broader challenges in the EV rental market. Faced with unexpected high maintenance costs and rapid depreciation, the company plans to sell an additional 10,000 EVs beyond its initial projection of 20,000. Hertz reported a $392 million loss for the first quarter, despite a revenue increase of 2%. Depreciation charges significantly contributed to this financial downturn. Originally, Hertz had committed to purchasing 100,000 Teslas post-pandemic to modernize its fleet, but the financial reality of maintaining and operating EVs has forced a strategy reversal. Kat DeLorean, the daughter of the iconic car's creator, faces a trademark challenge in her quest to build a modern DeLorean, despite another company owning her family's name When creator John DeLorean died, Stephen Wynne, a mechanic heavily involved in the DeLorean brand, secured the DeLorean trademarks in the 1990s from John’s disputed widow Kat had all but abandoned the
Thu, May 02, 2024
The Highest Level of Intelligence with Kelly Good Stoop
Hot Take Incoming: The practical over the sensational is key when using AI in marketing. In this lively episode of 'Auto Collabs', we're joined by Kelly Good Stoop, the Regional Vice President at Lotlinx. Kelly shares her journey from being an "army brat" moving across continents to shaping the cutting edge of automotive digital marketing. From her early days selling traditional advertising to spearheading advanced digital strategies, Kelly's story is about adaptability and foresight. The conversation pivots around the fascinating intersection of technology and marketing, with Kelly detailing how AI and machine learning are revolutionizing how dealers connect with customers. Her experiences range from broadcasting to digital platforms, offering a unique perspective on both the challenges and innovations within the automotive space. Timestamped Takeaways 0:00 Intro with Paul J Daly, Kyle Mountsier and Michael Cirillo 4:26: The shift from traditional to digital advertising in automotive 6:29: Embracing digital trends in the auto industry 8:51: Lotlinx's strategic use of data and AI to optimize dealership marketing. 14:58: The influence of Kelly's diverse upbringing 18:55: Kelly's strategies for engaging with new ideas and technologies at industry events Kelly Good Stoop is the Regional Vice President of Lotlinx Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, May 01, 2024
Ford Launches AI Training, Fastest/Slowest Selling Vehicles, Wal-Blox
Shoot us a Text. There’s nothing like a sunny May 1st. Today we talk about Ford’s new AI driven Dealer training tool. We also review the fastest and slowest moving inventory, as well as the newly launched ability for Roblox users to purchase real life Walmart items in-game. Ford is introducing "Ford University," a cutting-edge AI-powered training platform aimed at enhancing dealership staff effectiveness and customer interactions The platform, designed with cinematic storytelling, covers Ford's history and detailed technical breakdowns of vehicle features. Ford University utilizes AI to analyze dealership employees' performance, offering personalized feedback and "missions" that simulate customer interactions. AI feedback focuses on speech nuances, use of filler words, and the accuracy of vehicle descriptions against competitors. Launched in U.S. dealerships, the system will expand content to include technical staff by year's end. Some wheels take off faster than a teenager after curfew. Others linger awkwardly like guests at a party long after the music has stopped. As the latest study from iSeeCars shows, when it comes to clearing out inventory, not all cars are created equal. See the list here Fast Movers — Hybrids lead the charge: The Toyota Highlander Hybrid is the fastest-selling new car at 14.2 days on market. Top used cars: Lexus RX 350h tops the list at 12.3 days on market, followed closely by other Lexus models. Sluggish Sellers — EVs lag behind: New electric vehicles are the slowest in the new car market, taking 70.6 days on average to sell. Used car slow sellers: Maserati and other premium brands dominate the list of slowest-selling used cars. Slow to go: All of the slowest-selling used cars are taking 90 or more days to sell, with the top-ranked Jeep Cherokee taking more than three times the 54-day average, at 169.7 days. Seemingly at the top of their game Walmart and Roblox are first-in to pioneer accessible virtual e-commerce , launching a collaborative platform where users can purchase real-life items and have them shipped to their home through an immersive Roblox experience. The partnership introduces "Walmart Discovered" on Roblox, allowing users to buy physical products from a virtual store that mirrors Walmart's online shopping experience. Users
Tue, April 30, 2024
Asbury Yard Sale, Tesla Cuts Deeper, TikToker Blames the Dealer
Shoot us a Text. As stores across the country are playing ‘The Final Countdown’ as April wraps up, we’re talking about Asbury’s listing strategy for 10 of their stores. We’re also talking about Tesla’s next round of layoffs, as well as one Tiktoker who is less than excited about their interest rate. Show Notes with links: Asbury Automotive Group, ranked fifth among U.S. dealership groups , is eyeing the sale of 10 dealerships after its recent divestiture of the Koons Lexus of Wilmington. Here's the breakdown Asbury listed $242.7 million in assets, including the dealerships, real estate, and various franchise-related assets. The group sold Koons Lexus for $102 million, aligning with Lexus' franchise limit of eight stores per dealer. CEO David Hult highlighted a focus on selective acquisitions and maintaining shareholder value, noting a leverage ratio of 2.6 times earnings. The group currently has 157 stores Asbury has repurchased 240,000 shares for $50 million this quarter, with plans to buy back more. Hult said: "In the current market, there's certainly a lot of stores on the market from an M&A standpoint. But I think we really want to be extremely selective," said Hult during an earnings call. Tesla continues its aggressive cost-cutting strategy , announcing further layoffs that affect senior executives and the entire Supercharger team. This move comes amid broader tech industry layoffs and follows a significant quarterly earnings shortfall. Tesla has laid off more than 10% of its workforce, including high-profile executives and the team responsible for Supercharging infrastructure. The elimination of the entire Supercharger team, led by Rebecca Tinucci, signals a potential pivot in Tesla's approach to EV charging infrastructure despite the adoption of Tesla's NACS plug by other manufacturers. Alongside the layoffs, Tesla sees departures of key personnel like Drew Baglino, VP of Powertrain and Energy Engineering, underlining internal challenges and dissatisfaction. These layoffs coincide with Tesla's request for a substantial shareholder payout, contrasting sharply with the company's financial and operational cutbacks. Blaisey Arnold, a TikTok personality, recently faced the harsh reality of auto loans when she decided to part ways with her Chevy Tahoe due to overwhelming interest payments totaling $50,000. Arnold's loan for the $84,000 Tahoe came with a 10.2% APR from GM Financial, leading to massive interes
Mon, April 29, 2024
Top 100 Used Dealers, Tesla and China Deal on FSD, New EV Insight Report
Shoot us a Text. We’re starting out on the last few days of the month with a look at the Top 100 Used Car Dealers in the US. We also take a look at the potential of Tesla’s deal with China’s Baidu, and what it means for Full Self Driving. We’ll also review the latest Experian EV insights report. Following the Top 150 Dealer List, Automotive News has released their list of the Top 100 Used Dealer Groups . The top 100 dealership groups collectively sold 3,215,702 used vehicles in 2023, marking a slight growth of 0.1 percent from the previous year, indicating a stable used vehicle market despite economic fluctuations. Top 10: Lithia Motors Inc., AutoNation Inc., Penske Automotive Group Inc., Group 1 Automotive Inc., Sonic Automotive Inc., Asbury Automotive Group Inc., Hendrick Automotive Group, Morgan Auto Group, Ken Garff Automotive Group, NR Hudson Automotive Group. The top 10 dealerships alone accounted for 51.3 percent of the total sales among the top 100 groups, highlighting the concentration of market power within a small number of players. Acquisitions and expansions were common strategies among the top performers, as dealerships sought to increase their market footprint and capitalize on economies of scale. GOING TO BE AT ASOTU CON: Lithia, AutoNation, Group 1, Walser, Zeigler, Ourisman, Rohrman, McGovern, Fox Motors, #1 Cochran, Pohanka, Germain, DGDG, Carter Myers, Sam Pack. Tesla and China’s largest search engine and map provider, Baidu have sealed a deal enabling Tesla's Full Self-Driving system to operate in China, leveraging Baidu's crucial mapping licenses for navigation on Chinese roads. Baidu will provide Tesla with a mapping license essential for the operation of its Full Self-Driving technology on public roads in China, enhancing Tesla's navigation capabilities with lane-level precision. This partnership not only allows Tesla to legally collect vital road data in China but also clears significant regulatory barriers, setting the stage for FSD's deployment in one of the world's largest automotive markets. It remains unclear whether the data collected through this collaboration will be owned by Tesla or Baidu The deal coincides with Tesla CEO Elon Musk's recent visit to China, where he met with Premier Li Qiang (Pronounced: Channg)to discuss further approvals needed for FSD's rollout and data transfer protocols. Experian has released their <a href='https://www.experian.com/content/dam/marketing/na/automotive/infrographic/EV-Infographic/q4-2023-electric-veh
Sat, April 27, 2024
Giving Transportation To A Family In Need at ASOTU CON
Shoot us a Text. Welcome to the last Saturday of the month! Today, writers Chris Reeves and Kristi Canada join the show to talk about our partnership with Vehicles for Change and how we're giving away a car at ASOTU CON plus auctioning off a custom guitar to benefit the great things that Vehicles for Change do. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, April 26, 2024
Paying Tribute to Peterson, Dealer v. Direct, More Luxury Please
Shoot us a Text. It’s the last Friday of the month as we pay tribute to a Ford leader who broke the mold. We also talk about a hot debate over legacy OEMs flirting with DTC models as well as consumer luxury purchases going on the rise. This morning we pay tribute to Don Petersen , a transformative leader who guided Ford through a critical phase in the 1980s. Petersen, who passed away at 97 on Wednesday was at his home near Detroit in Bloomfield Hills, Mich., his niece Laura Peterson told Automotive News in an email., was celebrated for prioritizing quality and innovation, dramatically boosting Ford's market share and profitability. Under his leadership, Ford introduced influential designs like the aerodynamic Taurus and Mercury Sable, shifting industry standards towards more customer-focused products. He was known for fostering a collaborative workplace, which contrasted sharply with the autocratic styles of previous Ford executives. But at times was also said to have had some passionate outbursts. Petersen also spearheaded strategic acquisitions, notably purchasing a controlling stake in Hertz and increasing Ford's investment in Mazda, which significantly expanded Ford's global footprint and technological capabilities. "He insisted on teamwork and excellence in the name of customers and guided Ford through a period of revitalization," stated Ford Motor Co. A recent Automotive News editorial is highliging a hot topic we’ll be discussing with the President’s of NADA and several State ATA’s on the main stage at ASOTU CON. Dealer associations are lobbying against direct sales models for new brands like VW Group’s Scout and Honda’s Afeela, pushing for adherence to traditional franchise systems amidst a slowdown in EV market growth. Tensions rise as dealers threaten to withhold service and parts for brands pursuing direct sales, fearing the impacts on their business model and the established relationships with legacy automakers. The advertisement by state dealer associations in Automotive News underscores a significant industry rift, as they urge legacy automakers to reconsider direct sales strategies that could bypass traditional dealerships. "We believe there is a difference between a brand recently born and one seeded, nourished and grown under the protective arm of a legacy automaker," emphasizes the importance of maintaining traditional retail models for established brands. Despite economic inflation, the U
Thu, April 25, 2024
Ford Pleases, Honda Drops Stacks in Canada, Flight Refund Law
Shoot us a Text. Happy Thursday! Today we cover Ford’s stock price recovers due to hybrid sales, Honda invests $12 BILLION in EV supply chain, and automatic refunds when your next flight gets canceled or delayed. Ford’s Q1 earnings were released yesterday and sparked an overall optimistic tone as well as a stock price bump as they bumped up their full year free cash flow figure. Ford reports a solid quarterly profit driven by strong sales of work trucks, vans, and a 36% increase in hybrid vehicle sales. Despite a downturn in the EV market, Ford's Chief Executive Jim Farley emphasizes affordable EVs as a future growth area, with potential models priced between $25,000 and $30,000. Ford Pro, the division focusing on fleet services and work vehicles, reported exceptional profitability, contributing significantly to the company’s earnings. Ford Blue: $21.8 billion in revenue, EBIT of $905 million Model e: $100 million in revenue, EBIT loss of $1.32 billion Ford Pro: $18 billion in revenue, EBIT of $3.01 billion Regarding the future profitability of EVs Farley said, "We are going to build a sustainably profitable EV business," highlighting lessons learned from pricing strategies that boosted sales of their Mach-E SUV. According to reports mentioned in Automotive News, Honda is set to unveil a significant $11 billion investment plan to establish an integrated EV battery supply chain in Ontario, Canada. This investment includes the construction of an EV battery plant in Alliston and two supplier plants in partnership with South Korea's Posco Future M and Japan's Asahi Kasei. This sets a new high for automotive investment in Canada, trumping the $5B investment by VW, and $7B investment by Sweden based Northvolt Canadian Prime Minister Justin Trudeau and other top officials will join Honda’s announcement, marking a major expansion of Honda's Canadian operations. "This move supercharges our North American electrification efforts," said Jean-Marc Leclerc, Honda Canada President, highlighting the strategic importance of this comprehensive investment. Pretty soon, canceled or significantly delayed flights will mean fast refunds for air travelers as new DOT Regulations Mandate Automatic Refunds Airlines will now automatically refund passen
Wed, April 24, 2024
Tesla's Pivot, VinFast Expansion, Dealership's Kind Deed
Shoot us a Text. We’re mid-week and talking about Tesla's strategic shift amid falling profits.. We also cover VinFast's aggressive U.S. dealership expansion and the heartwarming story of a Dealership serving a single mother in South Dakota. Sandwiched between GMs stellar financial results yesterday and Ford’s upcoming earnings later today, Tesla's Q1 earnings were released yesterday and show a 55% decline in net income, falling to $1.1 billion, amid a backdrop of global demand challenges Despite setbacks, Tesla plans to fast-track the introduction of new vehicles, utilizing both current and next-gen platforms, aiming for production on existing lines for efficiency. The company's shift in strategy includes a focus on developing autonomous vehicles and a robotaxi service, anticipated to transform the future of mobility including a new app that is set to be an Uber/Lyft competitor When speaking about the much anticipated lower cost Tesla’s Musk said, “In terms of a new product roadmap, there’s been a lot of talk. We’ve updated our future vehicle lineup to accelerate the launch of new models.” Musk said we might see the vehicles in early 2025, if not later this year. He also stressed that new vehicles would be made on existing, functioning production lines. Amidst speculations of the canceled low-cost vehicle project, Tesla remains committed to its autonomous driving ambitions, with plans for a "robotaxi unveil" set for August. Tesla stock was up 11% in after hours trading but is still significantly down this year On to another EV maker who is leveraging the dealership model as its path to success, Vietnamese manufacturer, VinFast is rapidly growing its U.S. footprint, announcing 12 new franchised dealerships across several states VinFast now boasts 18 dealerships across seven states, complementing its direct sales in California with a stronger dealership network including new sites in Florida, Texas, Kentucky, and Connecticut. The Vietnamese automaker looks to enhance its market position, despite initial slow sales, expecting a significant contribution from these dealers in the latter half of the year. With a major factory underway in North Carolina, VinFast plans to meet U.S. production criteria to leverage a $7,500 federal EV incentive for its models like the VF 8 and upcoming VF 9 crossovers. Amid expanding global operations, the company is reporting a 400% increase in global vehicle deliveries compared to the same quarter last year. One South Dakota Dealership, Vern Eide Motors, <a href='https://www.autonews.com/dealers/de
Tue, April 23, 2024
GM Smiling, Tesla’s Fuel Toggle, Over-Surveyed
Shoot us a Text. This Tuesday we’re talking about why GM is smiling from their robust financial performance in Q1. We also talk about a controversial toggle on Tesla’s website, as well as what companies are ignoring in their surveys. Show Notes with links: General Motors is kicking off 2024 with a robust financial performance , boosting full-year guidance after a stellar first quarter. GM's net income soared by 24% in Q1, reaching $2.98 billion, driven by strong vehicle demand, especially in North America where revenue hit a first-quarter record of $36.1 billion. Adjusted earnings before interest and taxes grew to $3.9 billion, prompting GM to raise its full-year EBIT forecast by $500 million to between $12.5 billion and $14.5 billion. Despite new-vehicle prices expected to drop slightly, GM's pricing remained stable in Q1, supported by sales of small crossovers like the Chevrolet Trax and Buick Envista. Cost-cutting measures, including $300 million in reduced fixed costs from marketing and engineering, are on track to meet GM's $2 billion reduction goal by year-end. "Globally, our team is leaning into every opportunity with a focus on profitability to build on our strong start to 2024," said CEO Mary Barra, indicating the company's proactive strategy amid challenges. The Tesla toggle: Elon Musk recently tweeted a Model Y price starting below 30k. This was reflected on their website. The catch is that the price included calculated fuel savings based on an assumption of use. This could be adjusted and toggled off. Could Dealers get away with this? Are they violating the rules? Will they get in trouble? Customer satisfaction surveys are pervasive, a new Business Insider article explores whether they really help businesses, or just annoy customers with constant requests for feedback? Surveys have become a standard practice across industries, aiming to optimize customer experiences for business gains, not necessarily customer benefit. The spending on market research, specifically customer surveys, has ballooned to $80 billion annually, with a significant focus on monitoring and improving customer satisfaction metrics. Despite the intention to gather useful data, the overwhelming number of surveys has led to 'oversurveying', making many people less likely to respond, which paradoxically leads to more surveys being sent out. Companies are now focusing
Mon, April 22, 2024
Meet the new VW Union, Dealers Pushing Back, 1 min Cyber-fix
Shoot us a Text. It’s a fresh week and we’re talking about the UAW’s landmark unionization victory at Volkswagen's Chattanooga plant. We also cover Dealer response and legal threats over new sales models from Scout and Sony Honda Mobility as well as Tesla's swift response to a safety recall with a riveting fix. In a historic win for the UAW , employees at Volkswagen's Chattanooga plant in Tennessee voted decisively to unionize, marking the UAW's first significant success in the South. After two prior attempts, the UAW succeeded with 2,628 votes for and 985 against, setting a new course for worker representation in Southern automotive plants. This victory at Chattanooga, previously the only VW plant globally without union representation, may signal a broader shift in the U.S. auto industry. UAW President Shawn Fain celebrated the win, noting its potential to catalyze further unionization across the region: "Once you see the first domino fall, you're going to see a lot more follow." As Scout and Sony Honda Mobility venture into the U.S. market with plans to potentially bypass traditional dealership networks, dealer associations are gearing up for a possible legal confrontation. State dealer associations are advocating for Scout and Sony Honda Mobility to adhere to the traditional franchised dealer model, citing legal and regulatory concerns with direct sales models The dealer groups have voiced their readiness to challenge these plans legally, emphasizing the advantages of the franchise model in a nationwide advertising campaign which included taking out a full page ad in Automotive News Geoffrey Pohanka, hinted that the absence of a clear commitment to using dealerships might suggest a move towards direct sales, stating, "Silence speaks." John Devlin, the 2024 chairman and CEO of the Pennsylvania Automotive Association, expressed strong sentiments about the situation: "After two years of asking and getting nothing, frustration is very high." He also added, "We think this is going down the wrong road. I hope that there's good news at the end of this, but we wanted to proactively get out ahead of it." Tesla has responded swiftly to a significant safety concern with the Cybertruck's accelerator pedal by introducing a rivet-based solution to prevent the pedal pad from slipping off. Tesla temporarily stopped Cybertruck deliveries and issued a recall after discovering that the pedal pad could detach and
Sat, April 20, 2024
Growing your ability to be optimistic about the world.
Shoot us a Text. Today we're on with Head Writer Chris Reeves talking about how Car Dealers and OEMs are investing in generations. We also have a super secret promo code for ASOTUCON.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, April 19, 2024
Tesla Trouble, GM Goes Hydrogen, Tech Titans Tussle
Shoot us a Text. It’s Friday already. Today we’re talking about Tesla's official Cybertruck recall. We also discuss GM's innovative move into hydrogen fuel as a diesel alternative, as well as the high-stakes wealth race in Silicon Valley as Mark Zuckerberg surpasses Elon Musk to become the world's third-richest person. Show Notes with links: They can’t fix this one with an over the air update. As a follow up to our story Monday, nearly 3,900 Cybertrucks from the 2024 model year are being recalled due to a risk that the accelerator pedal may dislodge and become trapped, potentially increasing crash risks. The defect could affect both accelerator and brake pedal torque, posing significant safety concerns, according to the National Highway Traffic Safety Administration. Deliveries of the Cybertruck are now officially delayed as Tesla addresses these issues with the accelerator pedal. "Tesla is not aware of any injuries related to this defect," assured the company in its communication with the NHTSA. Tesla plans to notify affected owners in June 2024. It is unclear how the company plans to repair affected vehicles GM is spearheading a new project to replace diesel engines with hydrogen fuel cells, debuting a medium-duty truck powered by hydrogen for Southern Co. in Georgia. The Chevrolet Silverado 5500 truck will feature GM's Hydrotec fuel cells, offering over 300 miles of range, weighs almost 20k pounds, and has the ability to generate 300 kilowatts—enough to power 250 homes. This initiative is part of the $65 million SuperTruck 3 program by the U.S. Department of Energy, aiming to explore hydrogen fuel's potential in heavy-duty vehicles and establish a microgrid for hydrogen fueling. "This is the most exciting transformation I've been part of at GM," shared Mark Dickens, vehicle chief engineer for future fuel cell products, emphasizing the shift from concept to real-world application. Mark Zuckerberg has overtaken Elon Musk to become the world's third-richest person , with a net worth of $175 billion. Meta Platforms' stock has soared by 43% year-to-date, boosting Zuckerberg's wealth by $47.3 billion this year, while Tesla shares have plummeted nearly 40%, causing Musk to lose $55.2 billion. The stark contrast in company performance has significantly shifted their financial standings, with Zuckerberg's wealth heavily tied to Meta Platforms and Musk's spre
Thu, April 18, 2024
More EV Layoffs, New EV Model Year, Mandatory AI Training
Shoot us a Text. Thursday is upon us as we talk about another EV-only carmaker announcing layoffs. We also talk about Ford’s new model year for the F150 Lightning, as well as a potential standard-setter for employee AI training. Show Notes with links: It seems Tesla isn’t the only non-Dealership model EV maker laying off staff as Rivian is making its second round of job cuts this year, impacting about 150 support and back-office roles to align with market demands. This decision follows a 10% reduction in salaried staff earlier, targeting product and commercial EV teams, as the company faces high interest rates and production scaling issues. Rivian aims to achieve gross margin positivity by year-end, despite current economic headwinds and reduced consumer demand for EVs. In an emailed statement, Rivian said, ““We continue to work to right-size the business and ensure alignment to our priorities. This was a difficult decision, but a necessary one to support our goal to be gross margin positive by the end of the year.” Earlier this week, Tesla’s Elon Musk said on Twitter that laying off 10% of their staff was an action that needs to be done every five years or so to align the company for the next stage of growth As the model year cycle ticks another year forward, Ford is opening online orders for the 2024 model of the F150 Lightning, featuring new tech enhancements and reduced pricing. Following a temporary stop-ship for quality checks Ford has shipments of the 2024 F-150 Lightning from its Rouge Electric Vehicle facility The starting The electric pickup starts at just over $54k for its Pro model and has also seen price reductions up to $5,500 on select trims, with the new Flash trim now starting at $67,995 featuring the highest range available at 320 miles Enhanced features include convenience features like a charging display that estimates time to finish, a Vapor Heat Pump System for improved efficiency, and expanded access to Tesla’s Supercharger network. IKEA is potentially setting a new benchmark in employee development with a comprehensive AI literacy initiative aimed at equipping its workforce with essential skills to navigate the evolving AI landscape. IKEA has launched AI literacy training targeting 3,000 co-workers and 500 leaders to foster a deep understanding of artificial intelligence within the organization. The training includes courses like AI Fundamen
Wed, April 17, 2024
Big UAW Votes, Autonomy is Back, Carvana Goes Gaming
Shoot us a Text. It’s a notable Wednesday as a looming UAW vote at the Chattanooga VW plant gets under way. We’re also talking about a new set of “trust principles” regarding autonomous vehicles, as well as a brand collab between Carvana and pro gaming. The voting begins this morning to determine whether or not to unionize the VW plant in Chattanooga. In a dramatic move yesterday, Southern governors issued cautioning statements directed at the 4300 auto workers at the plant, warning that voting for UAW union representation could threaten their jobs. Southern governors from Tennessee, Alabama, Georgia, Mississippi, South Carolina, Texas have publicly opposed the unionization, linking it to potential job risks and investment losses. This union drive is part of the UAW's broader strategy to organize nonunion auto factories across the South, affecting nearly 150,000 workers. Volkswagen has expressed neutrality, respecting the workers' right to a democratic vote and ensuring privacy in the voting process. Tennessee Governor Bill Lee said, "We are seeing in the fallout of the Detroit Three strike with those automakers rethinking investments and cutting jobs. Putting businesses in our states in that position is the last thing we want to do." In a call back to 2019, it looks like autonomy may be in the sights of industry experts and culture as yesterday the Autonomous Vehicle Industry Association (AVIA) published their “Trust Principles.” Self-driving cars like those from Cruise and Waymo have contributed to a growing public skepticism, following several troubling incidents including accidents and traffic disruptions. AVIA aims to enhance community relations and educate the public about AVs, planning to establish a national council with law enforcement and first responders to improve emergency situation responses. Recent events underscore the urgency of building trust; a Cruise vehicle in San Francisco was involved in a serious incident last October, raising concerns over safety and transparency. The industry's broader challenge includes distancing itself from systems like Tesla’s Full Self-Driving, which are often confused with fully autonomous technologies. Carvana is collaborating with NRG and Rocket League influencer Musty for a unique giveaway, offering gamers a chance to win a Tesla Model 3, blending the excitement of espor
Tue, April 16, 2024
GM’s New Digs, CarMax Slashes Return Window, Cybertruck Stall
Shoot us a Text. Today we’re talking about GM’s HQ move after 50 years. We also talk about Carmax’s major reduction in the customer return window, as well as an unintended acceleration issue with the Cybertruck. Show Notes with links: General Motors is relocating its headquarters from the iconic Renaissance Center to the newly constructed Hudson's Detroit skyscraper, heralding a major shift in Detroit's downtown development and GM’s operational focus. GM is planning its move to a 404,000-square-foot office space in the Hudson's Detroit project by 2025. The future of the Renaissance Center, Detroit's iconic complex since the 1970s, is now under review for potential new uses as GM did not announce plans to sell the property. This relocation reaffirms GM’s commitment to Detroit, aligning with the city's broader downtown revitalization efforts led by billionaire Dan Gilbert. "Together with Bedrock, the city and the county, we are reimagining the Renaissance Center for its next chapter," says GM CEO Mary Barra. CarMax is reducing the time customers have to return purchased vehicles. Starting May 12, the window for vehicle returns and refunds will be shortened from 30 days to 10 days. CarMax is modifying its Money Back Guarantee to 10 days, a significant reduction from the previous 30-day window. This change will take effect on May 12, but CarMax will honor the 30-day return period for vehicles purchased on or before May 11. The decision to shorten the return period is a response to "experiential headwinds" affecting customers and associates, as noted during CarMax's fourth-quarter earnings call. CarMax CEO Bill Nash said during the company's fourth-quarter earnings call, "A lot of our customers take advantage of it well before the 30 days. You get past the 10, some people are just working the system." Tesla has temporarily stopped deliveries of the Cybertruck due to an unforeseen accelerator problem, causing significant inconvenience for customers awaiting their vehicles. Tesla notified a client, “We have just been informed of an unexpected delay regarding the preparation of your vehicle. We need to cancel your delivery appointment on Sunday and we will reach out again when we’re able to get you back on the schedule. We apologize for the inconvenience and look forward to hosting your Cybertruck delivery soon!” Tesla is pausing Cybertruck
Mon, April 15, 2024
Fisker Dealers Sound Off, Ford Strikes Back, Tesla Adapts
Shoot us a Text. Tax day is exciting enough, but what’s better than starting the second half of the month on a Monday? Today we’re talking about how the remaining Fisker Dealers are feeling as well as Ford and Tesla’s tennis match. Show Notes with links: Despite Fisker ongoing financial troubles and a significant drop in stock price, the few remaining dealers like Fisker Indianapolis and Fisker Albany are staying positive and continue selling the Ocean crossover. Recent price cuts of nearly 40% on the Ocean model have spurred customer interest and sales, with Fisker Indianapolis reporting successful deliveries to out-of-state customers. Remaining Dealers are hopeful for the future, citing the Ocean's affordability and positive customer feedback on the vehicle's performance and design. Val Ranguelov, dealer principal at Fisker Albany in New York said, "As of now, we're still moving cars. Time will tell what happens. I love the car, it's very solid and very well-built. We just hope for the best." Classic Fisker of Atlanta continues to list Ocean inventory online. However, other early partners like Mills Automotive Group and Ourisman Automotive Group are distancing themselves from Fisker, reflecting varied dealer confidence in the brand's future. The OG empire is striking back as Ford introduces a $1,500 "Tesla Competitive Conquest Bonus Cash" rebate specifically targeting Tesla owners for the purchase of an F-150 Lightning or Mustang Mach-E to boost their EV sales. Any owner of a Tesla vehicle from 2008 or newer is eligible for this incentive, without the need to trade in their current vehicle. Ford is offering substantial discounts across various trims of the F-150 Lightning up to $12,500 as part of a broader strategy to enhance its competitiveness in the EV market. An entry-level Mach E starts around $38k with the added Tesla incentive cash "This incentive is available through July 8 for both the 2024 and 2023 model years, as we aim to attract Tesla loyalists and expand our customer base Meanwhile, Tesla is deploying a dual effort of both slashing subscription prices and <a href='https://electrek.co/2024/04/15/tesla-l
Sat, April 13, 2024
How to Start Being More Hospitable At Your Dealership
Shoot us a Text. We're only 31 days away from ASOTU CON on this Saturday, and writers Chris Reeves and Kristi Canada join the show to share some More Than Cars Moments. Walser Polar Mazda got to hear from Will Guidara about the ideas of Unreasonable Hospitality and went back to their store and start implementing everything they learned. Shout out to Dayna Kleve for sharing the story with us! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, April 12, 2024
Carmax Recalibrates, Ford Starts Shipping Rangers, 9 Figure Dudes
Shoot us a Text. We’re rounding the track on Friday as we cover CarMax’s latest bumpy road. We also talk about Ford’s truck wave as well as a massive nine figure trick shot from creators Dude Perfect. Show Notes with links: CarMax is facing significant headwinds amidst high interest rates and fewer cars purchased directly from customers. The company reported a marginal increase in comparable store used-car unit sales of 0.1% for Q4, underperforming against analyst expectations of 0.36% growth. Net income for the quarter fell by 27%, sharply contrasting with analysts’ forecasts of an 8.4% increase, leading to a 13% drop in CarMax shares. High interest rates have deterred buyers, pushing them towards newer and more affordable cars, exacerbated by a supply shortage of newer used cars, which isn't expected to improve until late 2025. CarMax has focused on preserving profitability rather than market share expansion, with CarMax Auto Finance seeing a 19% growth in income due to reduced loan loss provisions. Originally planning to hit the 2M cars per year mark by 2026, the company has now pushed that target out to 2030 "Affordability will be the key driver of our future success," noted CarMax executives, as the company revises its vehicle sales targets amidst ongoing economic challenges. Ford has announced it will finally be shipping 144,000 redesigned F-150 and Ranger pickup trucks to North American dealers, following a quality assurance delay. The automaker is also resuming shipments of the F-150 Lightning electric trucks, with price cuts on some variants by up to $5,500. Originally Initiated due to past warranty costs ($4.8 billion in 2023), this cautious approach was intended to avoid electronic issues detected in pre-shipment inspections. These shipments are pivotal for Ford to meet its ambitious 2024 pre-tax profit goal of $10 to $12 billion, reinforcing confidence expressed last month And for the $100 million dollar trick shot, YouTube sensation Dude Perfect is scoring a massive investment to expand their empire into a Texas-sized headquarters and beyond. With plans to transform digital fun into a family-friendly destination, the group is setting up to score big, not just online, but in real-world entertainment, merch, beverages and beyond. The investment will fund a new headquarters in Frisco, Tex
Thu, April 11, 2024
Friends and Fam Review, Insurance Still Rising, Cyber-Hollow
Shoot us a Text. It’s Thursday and we’re going to review the recent Kain Friends and Family event in Lexington, KY. We’re also talking about the continued pricing pressing on car insurance, as well as a revealing look at a teardown of the Tesla Cybertruck Show Notes with links: Kyle to give summary of what he observed, learned at Kain Friends and Family Just as car buyers breathe a sigh of relief from decreasing vehicle prices, a new hurdle is emerging—skyrocketing insurance rates. Darin Davis's experience epitomizes this shift, as his insurance for a 2024 Cadillac XT4 nearly doubled upon renewal. Car prices drop as pandemic-related supply chain issues resolve, but insurance costs surge due to repair complexities and climate-induced damages. Auto insurance rates have soared by 22.2% over the past year, marking the largest increase since the 1970s, contrasting with the stabilization of vehicle prices. Darin Davis, a 56-year-old from Dallas, felt the sting of rising insurance costs when the rate for his new 2024 Cadillac XT4 nearly doubled at renewal. This unexpected increase dimmed his excitement over the car, making him reconsider his vehicle choice due to the financial strain. "It takes the fun out of owning a new car when you’re paying so much money," reflects Davis on the unforeseen hike in his car insurance rate. The Tesla Cybertruck's design continues to both intrigue and baffle , with a new teardown revealing a massive but oddly half-full battery pack. This discovery raises questions about Tesla's engineering choices and the vehicle's efficiency. Sandy Munro's preview of a Tesla Cybertruck teardown unveils a surprisingly empty battery pack, despite its large 123 kWh capacity. The Cybertruck's range has fallen short in tests, with independent evaluations showing only 254 miles, and potentially as low as 200 miles under certain conditions. Speculation arises on whether this design choice aims to reduce weight or reflects Tesla's cost-cutting strategies, with an upcoming bed-mounted range extender expected to add significant range at the expense of cargo space. One lead Cybertruck engineer responded to the findings on X, responding “Looks half full to me.”, yet. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at:
Wed, April 10, 2024
Cruise Comeback, Contentious Lithium Mines, Return of the Cubicle
Shoot us a Text. Welcome to Wednesday as we talk about GM’s Cruise staging a comeback. We also talk about the tension around the only active lithium mine in the US, as well as the potential return of the cubicle (yeah, those things). GM's Cruise driverless fleet is steering its way back into action with a human touch. After a high-profile suspension, they're hitting the road in Phoenix with human-driven vehicles for data collection, signaling a cautious return to their autonomous ambitions. Aiming to rebuild trust, the initiative marks a tentative step towards resuming fully autonomous operations in collaboration with cities, after a suspension triggered by safety concerns and regulatory actions following a series of incidents, including a significant accident in San Francisco. Amid ongoing Justice Department and SEC investigations into the handling of a past accident, Cruise emphasizes progress in safety protocols and a commitment to earning back public trust. Despite setbacks, Cruise remains optimistic about the future of autonomous driving, touting its potential to enhance safety and reduce accidents. Nevada's lithium demand is drying up its water sources . As the Silver Peak mine expands and new players enter, the race for this vital battery component is challenging the arid state's limited water reserves. Nevada's Clayton Valley, home to the U.S.'s only active lithium mine, faces growing competition for water amid a lithium mining boom. Local residents and environmental advocates are expressing deep concerns about the mining's impact on water resources, with fears that increased lithium mining could deplete already scarce water supplies in Nevada's arid environment, affecting both communities and ecosystems Water rights disputes are intensifying as Albemarle claims almost all groundwater, crucial for lithium extraction, leaving little for newcomers. Sustainable water use is questioned, with current aquifer volume estimates outdated, raising concerns about environmental impacts. Direct Lithium Extraction (DLE) technology could offer a less water-intensive solution, but water rights remain a contentious issue. Remember those cubicles? They might just be making a comeback as millennials, once critics of this office staple, are discovering their hidden value. A Business Insider article highlights Sydney Baker, a 27-year-old millennial, who shares how her cubic
Tue, April 09, 2024
Greenfield’s Hot Takes, Arizona AG Rules On Dealership, Delta Eclipse Flight
Shoot us a Text. It’s Tuesday and we’ve got special guest Steve Greenfield to give us his hot takes on the Top 150 Dealer list as well as Tesla’s decision to halt its low cost EV. We also talk about the Arizona Attorney General’s ruling against one Dealership for not honoring advertised prices, as well as a look inside yesterday’s special Delta eclipse flight. Show Notes with links: Greenfield’s takes on: Top 150 Dealership list Tesla’s alleged decision to halt production of low-cost EV Desert Toyota in Tucson, Arizona, agrees to a $60,000 settlement for not honoring advertised vehicle prices, the Arizona Attorney General's Office reports. The dealership allegedly left out mandatory accessory costs and reconditioning fees from online prices. Items such as exterior protective coating, door edge guards, door cups, and window tint, as well as additional undisclosed reconditioning expenses Attorney General Kris Mayes stressed that advertised prices must include all mandatory add-ons. Desert Toyota did not admit wrongdoing but opted to settle to resolve the matter: the settlement is made up of $40,000 in civil penalties, $10,000 for consumer restitution, and $10,000 in legal fees and costs. Desert Toyota must now include all mandatory fees in advertised prices and preserve price-quoting customer communications for a year. This case highlights broader regulatory efforts against auto retail deceptive practices, including the FTC's proposed rules on pricing transparency. Desert Toyota did not admit wrongdoing but opted to settle to resolve the matter. Yesterday, $6B worth of consumer spending hit the market due to the total solar eclipse and Delta Air Lines jumped in on the action offering a special flight from Dallas to Detroit, aligning with the solar eclipse's path, providing passengers with a once-in-a-lifetime experience from 35,000 feet. Passengers, including excited children and Delta employees, were treated to a pre-flight party at Dallas Fort Worth International Airport, complete with a celestial-themed balloon arch and music, they received “Warby Parker” brandedl eclipse-viewing glasses, and goodie bags with themed apparel and snacks like Moon Pies and Sun Chips awaited passengers aboard the Airbus A321neo. The flight aimed to maximize the time in totality, adjusting its path allowing passengers on both sides to view the event The flight ended in Detroit with a celebration, featuring astronaut Scott Kelly, who highlighte
Mon, April 08, 2024
Top 150 Breakdown, Hasta-la-vista-cheap-Tesla, Blackout Bump
Shoot us a Text. Welcome to quite an eventful Monday as we not only take a first look at the Automotive News Top 150 Dealer list, but also dig into a he-said-she-said about Tesla’s affordable vehicle, as well as a quick primer on today’s eclipse frenzy. It’s finally released, from the AN article: “ The Automotive News top 150 dealership groups collectively sold 3,764,272 new vehicles in 2023, representing a 24.1 percent share of the industry's total retail sales of 15,614,328. In 2022, the groups on the list sold 23.3 percent of the industry's retail sales, or 3,231,490 of the industry's 13,865,803 vehicles sold. Represented at ASOTU CON so far: 1. Lithia 2. Autonation 4. Group 1 16. Ourisman 26. Walser 59. DGDG 84. Sam Pack 87. CMA Is Tesla's $25k car dead? Amidst escalating competition from budget-friendly Chinese EVs, Tesla is reportedly canceling its long-awaited affordable car project, pivoting the focus towards the development of autonomous robotaxis. Tesla abandons plans for a $25,000 vehicle, a key part of Elon Musk's vision for mainstream EV adoption, in favor of focusing on self-driving robotaxis. The decision marks a significant shift from Tesla's initial strategy to use luxury model profits to fund more accessible EVs for the average consumer. Despite Musk's dismissal of Reuters' report as "lying," Tesla shares fell 3.6% at market close, with a brief recovery following Musk's announcement of a Tesla Robotaxi unveil on August 8. Tesla's decision was informed by discussions in a large employee meeting in late February, communications from an unnamed program manager about halting the affordable car project, and a fourth individual optimistic about the strategy pivot. These were backed by messages and company communications seen by Reuters, highlighting internal deliberations and directions Business is booming across a swath of the US thanks to today's total solar eclipse Today's total solar eclipse, visible across North America, is likened to a celestial blackout event, promising an early afternoon spectacle from Texas to Maine, not to be repeated in the US until 2044. The eclipse is anticipated to boost the US economy by $6 billion, with millions treating the event as a major holiday, rivaling the financial impa
Sat, April 06, 2024
Unreasonable Hospitality = A Trunk Full of Supplies for New Parents
Shoot us a Text. Welcome to the first Saturday of April! Writers Chris Reeves and Kristi Canada join the show to share their favorite 'More Than Cars' stories from the week. Today we're highlighting the story of Service Director John Frazier (friend of ASOTU) caring uniquely for a poor customer experience. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, April 05, 2024
Stairmaster Returns, Ford Halts New EV Trucks, GenZ Money Skills
Shoot us a Text. It’s the first Friday of the Month and we’re talking about another OEM’s return to stair step incentive programs. We also talk about Ford’s throttling back on some new EV truck models, as well as GenZs propensity for financial responsibility. Ford is the next OEM to get back on the stairmaster as it reactivates stair-step incentives to boost F-150 sales, stirring up a mix of concern and strategic maneuvering among dealers. The program applies to certain 2023 models, including gasoline, hybrid, and Lightning variants, aiming to move inventory as 2024 models face delivery delays. Critics argue stair-steps erode trust and create pricing confusion, with calls for transparency and direct incentives to customers. Dealerships earn $750 per truck if they meet their monthly sales target, $1,000 per truck for reaching 120% of the target, and in February and March, the incentive was $1,500 per truck for surpassing the target by 120%. Nick Anderson, general manager of Chuck Anderson Ford in Excelsior Springs appreciates the help to move vehicles but has deeper concerns about causing more customer confusion: "My main goal is for the customer to 100 percent understand everything," Anderson said. "When manufacturers have these hidden offers that the dealership is aware of but the customer doesn't understand, I think it hurts the relationship between the consumer base and the dealer body. Manufacturers are never really on the hook to explain anything." Ford has postponed the debut of new electric SUVs and trucks in North America, delaying the launch of three-row EVs in Canada to 2027 due to a global dip in EV demand and to await market development and advancements in battery technology. Tennessee's new electric truck production pushed to 2026, aiming for gradual quality-driven output increase. Amidst financial losses in its EV segment, Ford focuses on integrating hybrid options across its gasoline vehicle range. "We are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid, and fully electric vehicles at the right time," says CEO Jim Farley. Gen Z is defying the financial stereotypes inherited from their predecessor Gen Y, as nearly 80% reject the notions of 'doom spending' and 'soft saving' as reflective of their financial behaviors, according to a Cleo survey. "Doom spending" refers to the act
Thu, April 04, 2024
Tennessee Power, Silverado EV Launch, Eclipse Traffic Imminent
Shoot us a Text. It’s Thursday and we’re talking about GM’s big power plant open in a Tennessee town. We also talk about the pricing and specs on the upcoming launch of the Silverado EV, as well as give you the need-to-know details on Monday’s full solar eclipse. Show Notes with links: GM kicks off EV battery production at its Ultium plant in Tennessee in a major leap forward in the automaker's electrification strategy. This is start of production at the second of four planned joint venture battery plants in the U.S., enhancing GM's EV manufacturing capabilities. The batteries produced will first supply the electric Cadillac Lyriq at GM's nearby Spring Hill Manufacturing plant, with plans to extend shipments for broader EV production. At full capacity, the Tennessee facility will boast 50 gigawatt-hours, significantly bolstering GM's EV battery supply. GM's collaboration with LG Energy Solution combines operational and technological expertise, aiming to set new industry standards for battery cell production. "This moment has been years in the making, and I'm grateful to the thousands of contractors, community partners, and team members who have worked tirelessly to make this moment a reality," said Chris Desautels, Spring Hill plant director. Chevy's Silverado EV RST First Edition is going to hit the market mid-2024, boasting a 440-mile range at a starting price of $96,495. Longer range than initially estimated, up from 400 to 440 miles, with a reduced starting price from $106,895. Features include a 17-inch infotainment screen, Super Cruise technology, and capability for 350 kW fast charging. Power stats impress with 754 hp and acceleration from 0 to 60 mph in just 4.5 seconds, plus towing up to 10,000 pounds. "It's a significant leap forward in EV technology, providing remarkable power and range that sets a new standard," Chevy remarked. Monday’s, solar eclipse is set to be historic, attracting millions and potentially causing some historic traffic jams and flight delays . If you are in the path of the ‘so called’ Totality…here's what you need to know: The eclipse path will span across the U.S. from Texas through states including Oklahoma, Arkansas, Missouri, Illinois, Kentucky, Indiana, Ohio, Pennsylvania, New York, and into New England, covering Vermont, New Hampshire, and Maine. An estimated 32 million reside in the path of totality, with millions expected to trave
Wed, April 03, 2024
Sales Chutes and Ladders, Gender Gap in EV Purchasing, GenZ Getting Their Hands Dirty
Shoot us a Text. Q1 numbers are rolling in and the reports are mixed…go figure. This Wednesday we are also looking at some cultural broad strokes, including the stark gender gap in EV purchase behavior and GenZ returning to college-less skilled trades. General Motors' sales dipped in Q1, contrasting with Toyota and Honda's robust gains, signaling shifting market dynamics. General Motors' sales in the U.S. faced a downturn in Q1, with only the Buick brand showing an upward trend. GM cited lower fleet shipments as a reason for the decline, though retail volumes saw a 6% rise. Toyota and Honda experienced significant sales growth, driven by strong demand for hybrids and an increasing inventory. Toyota's sales leapt 22% in March, with substantial increases across car and light-truck categories. Honda reported a 15% increase in volume at the Honda division, with car sales outpacing light-truck sales. Inventory sits at 1.7M new vehicles, up 39% from 2023, while avg incentives per vehicle increased 67% YoY to $2800, according to JD Power. New car avg prices are down to $44,186, with only 16% of vehicles in March selling over MSRP, down from 31% in March 2023. Despite the growing appeal of electric vehicles (EVs), a noticeable gap exists in their adoption among women, driven by design and safety related concerns including range anxiety and designs for taller people. Kate Harrison, co-founder of MoveEV, is working to highlight the need for the industry to address these disparities and create more inclusive experiences. Range anxiety, safety concerns at remote charging stations, and the high initial cost of EVs deter women, alongside a lack of awareness about EV benefits. Initial designs like the 2017 Tesla Model S seemed tailored for taller individuals, posing comfort issues for women, unlike the more accommodating 2024 Model Y. Men comprise 67% of EV buyers, with only 34% of women considering an EV for their next vehicle, pointing towards a significant gender gap in EV adoption. Harrison emphasizes the cost-saving and environmental benefits of EVs, urging for greater female participation to not miss out on these advantages. The allure of the skilled trades is capturing the interest of Gen Z, marking a pivotal shift from traditional college pathways as competitive salaries and the incorpora
Tue, April 02, 2024
BYD Dethroned?, Ford Rides the Discount Train, Big Brand April Fools
Shoot us a Text. The week is in full swing and Q1 results are starting to hit the news cycle. We take a look at BYD’s possible slide in Q1, Ford’s journey back to the discount aisle, and how big brands have leveraged the April Fools moment over the years. China's BYD reports a significant first-quarter sales dip in 2024, indicating a possible shift in the global EV market leadership back to Tesla, amidst intensifying price wars and changing market dynamics. BYD's first-quarter sales plummeted by 43% QoQ, while Tesla’s sales are expected to only fall by 5%, potentially relinquishing its status as the world's leading EV seller to Tesla. Despite a year-on-year increase, the dramatic quarterly drop hints at Tesla's enduring dominance and the impact of competitive pricing in China. Tesla's consistent performance, coupled with a strategic price war in the Chinese market, underscores the intense rivalry between the two EV giants. Ford’s strategic price reductions on the 2023 Mustang Mach-E have ignited sales and slashed inventory, spotlighting the critical balance between EV affordability and manufacturer profitability. Ford's discounts of up to $8,100 on 2023 Mustang Mach-E models have spurred sales, addressing the challenge of EV affordability. Despite these efforts, each sale still incurs a loss for Ford In February, almost 3K Mach-E’s had sold, up 64% YoY Since the introduction of discounts, the Mach-E's inventory movement has nearly tripled, though its turn rate of 33% still lags behind the industry average of 45%. "We are getting a lot of customers who were always interested in an electric product but saw it as unaffordable," said Doug North, owner of North Brothers Ford. From left-handed Whoppers to Velveeta night cream, history has seen its fair share of big brands taking part in the every popular April Fools games. "In nationwide surveys, coffee drinkers told researchers the No. 1 complaint they have about their beloved drink is the way it stains," — Caribou Coffee, revealing the spoof behind Caribou Clear coffee (2014). Some fun ones: The Taco Liberty Bell (1996): Taco Bell fooled many by claiming to buy and rename the Liberty Bell, sparking a national stir. Left-handed Whopper (1998): Burger King's prank aimed to cater to left-handers by rotating all condiments 180 degrees for easier handling.</
Mon, April 01, 2024
Special Guest Elon Musk, What Inventory Level?, 20 Years of Gmail
Shoot us a Text. Happy April 1st as we roll into a fresh week, fresh month, and fresh quarter all at the same time. Today we’re talking about landing Elon Musk as a special guest. We also ask what we have learned as an industry about inventory levels, as well as looking back on 20 years of Gmail. In a decisive stance against e-commerce giant Amazon and competing OEMs like Hyundai, Toyota President Jack Hollis voiced a resolute "no" to selling cars on the platform at the Automotive Forum New York. Here's why Toyota is charting its own digital path: Hollis emphasizes the risk of bypassing Toyota's established dealership system, calling it “a completely divergent path”, advocating for direct engagement with consumers through traditional channels. Introduced in 2019, these digital retailing tools developed for Toyota and Lexus are continually refined based on dealer feedback, ensuring a tailored, seamless customer experience. Toyota commits to enhancing the digital buying experience within its ecosystem, prioritizing the integration with dealership management systems and safeguarding customer privacy. Quote from Jack Hollis: "For us to take the dealer's input and provide it so they have a tool to make it seamless for you, the customer — that, to me, we're all in on." Inventory has been a hot topic in the industry and questions still loom whether OEMs can learn from more stringent inventory levels or whether flush inventory will return. New-vehicle inventory last month reached 2.8 million vehicles, a 78-day supply, according to Cox Automotive, up about 1 million vehicles from where it had stood a year earlier. Tight inventories during the pandemic led to a significant increase in industry profits, reaching $55 billion in annual dealer profits in 2022. Despite the potential benefits of lean inventory management, factors like dealer competition and manufacturing overcapacity suggest this success may be hard to replicate. J.D. Power analysis reveals a direct correlation between inventory levels and dealer margins, highlighting the profitability of operating with fewer vehicles to sell. Automakers and dealers expressed intentions to maintain lower inventory levels, but the return to pre-pandemic inventory and incentive levels seems inevitable. "We've learned [as an industry during the pandemic] that we can operate at lower inventory levels," said Tyson Jominy, vice president of data and analytics at J.D. Power. 20 years ago, Gmail burst onto the scene with an
Sat, March 30, 2024
How West Herr Is A Shining Example of a More Than Cars Mindset
Shoot us a Text. Welcome to the fifth Saturday of the month. Today, Jordan Cox, Nathan Southwick, Chris Reeves and Kristi Canada reflect on the busy week around the ASOTU-verse, focusing on the Will Guidara interview and the More Than Cars Episode 3: West Herr Premiere. Watch the episode here Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, March 29, 2024
March Sales Marching, Valuations Adjusting, Costco Hot Dog Changes Coming?
Shoot us a Text. It’s a magical fifth Friday before a fifth Saturday and we’re ready to roll as we talk about the anticipated strong end to the month. We’re also covering the latest M&A report from the Presidio Group, as well as checking in on our old friend, the Costco Hot dog, Soda Combo. March is on track to be a standout month in auto sales, the strongest in three years, with sales volumes expected to exceed 1.4 million vehicles. This surge is fueled by higher incentives and increased inventories, keeping consumer interest high as the spring selling season kicks off. Sales volumes are estimated to surpass 1.4 million vehicles in March, a 5-6% increase from last year Quarterly sales are expected to hit 3.76 million, up 5.5% year-over-year "Consumers are still shelling out cash for new vehicles," says Jeff Schuster from GlobalData, highlighting the impact of inventory availability and incentives on mitigating price increases. Mixed results are anticipated across automakers due to inventory challenges faced by Japanese brands last year. Toyota, Honda, and Mazda may see 14-22% gains, whereas Stellantis, GM, and Hyundai could face losses. Average transaction prices fell to $47,244 in March, a 2% decrease from last year, with electric vehicle days' supply dropping significantly from 159 to 114 According to a new report by M&A firm, The Presidio Group, Dealership values are experiencing a noticeable adjustment as vehicle supplies rise, and profit margins begin to normalize post-pandemic. The market demands increased operational efficiency to sustain profitability. Strategic Insights on Profitability: With a 20.4% decline in net pretax profit across the board in 2023, dealers are encouraged to focus on operational efficiencies, customer experience, and innovation in dealership management to navigate the changing tides. The latest Presidio Dealer Direction Survey reveals a pragmatic outlook among dealers. While recognizing the challenge of declining profitability, dealers also see opportunities for growth and acquisition, reflecting a resilient and forward-looking industry mindset. Even though dealers are in agreement that profits will continue to drop over the next 12 months, they are still optimistic on the reality that profitability is staying above pre-pandemic norms as the average dealership’s net pretax profit last year was still more than 2.5 times 2018’s level, according to a Presidio analysis In this world where inflation nudges prices upward across the board, we must ask, “Where is the pricing on <a href='https://retailwire.com/costcos-h
Thu, March 28, 2024
Bye Bye Diesel, Hello AI Movies, Fisker’s Low Prices
Shoot us a Text. It’s a throwback Thursday today as we have JC in the house and we reflect on Volvo’s diesel legacy. We’re also talking about Fisker lowering MSRP on its troubled Ocean SUVs and the way AI is changing the video game. Show Notes with links: After 45 years and over 9 million diesel vehicles produced, Volvo bids farewell to diesel , a powertrain that once constituted half of its global sales between 2012 and 2016. The final diesel model, an XC90 SUV, has rolled off the production line in Torslanda, Sweden, destined for the World of Volvo museum as a relic of the past. With the Torslanda factory's transition to electric motor production, Volvo aims to transform into an electric-only automaker by 2030, leading the charge among legacy car manufacturers. Former CEO Håkan Samuelsson highlighted the strategic shift away from diesel towards electric vehicles as a commitment to "invest in the future – electric," amidst a declining diesel market in Europe. Fisker is making a daring move to slash prices on its 2023 Ocean models in an effort to boost sales and attract more customers to its electric vehicles. Here's what's happening: Fisker reduced the MSRP of its Ocean Extreme trim by 39%, from $61,499 to $37,499, aiming to make it a more attractive option in the competitive EV market. The price cuts extend across the board, with the Ultra and Sport trims seeing reductions of 34% and 36%, respectively, highlighting Fisker's commitment to affordability. This pricing strategy emerges amidst financial challenges, including the collapse of talks with a potential automaker partner and a warning of delisting from the New York Stock Exchange due to the company's low share price, which may trigger debt defaults. Sora, OpenAI's AI video generator, has swiftly become a focal point in AI-driven content creation, showcasing the vast potential of AI in enhancing artistic expression. Professional creatives, including directors and musicians, have been given early access to Sora and produced content that transcends traditional boundaries, highlighting the technology's role in democratizing high-quality video production. Videos show surrealistic scenes, like robots dancing amidst trash, new breeds of animals like a half fox/half bird and a half whale/half octopus, and the odyssey of the Voyager's golden record through space, showcasing Sora's capability to brin
Wed, March 27, 2024
ASOTU In NYC, Car Shipment Pivot, Tom Doll Legacy
Shoot us a Text. Welcome to Wednesday as we recap yesterday’s trip to NYC, the AutoForum, VaynerMedia, and podcast with NYT Bestselling author, Will Guidara. We also talk about the plan to keep imported cars moving toward dealer lots despite the bridge collapse, as well as a Newsweek nod to Tom Doll’s lasting contribution to the Subaru brand and to the industry. Show Notes with links: Following the collapse of the Francis Scott Key Bridge yesterday, both GM and Ford have announced plans to divert vehicle shipments to alternative ports in order to maintain seamless operations. The Port of Baltimore, a vital hub for car shipments in the U.S., faces potential setbacks after the collapse. In 2023, the port saw over 750,000 car shipments. Toyota, Volkswagen and BMW, having facilities not directly impacted by the collapse, anticipated no significant disruptions. Nissan also expected minimal impact. Mercedes reported no impact on vehicle exports or its Alabama plant's parts supply, while Stellantis said it is "initiating discussions with our various transportation providers on contingency plans to ensure an uninterrupted flow of vehicles to our customers." Some industry experts are not as confident as the OEMS. “There will certainly be a disruption," said John Bozzella, CEO of the Alliance for Automotive Innovation. "Baltimore is the No. 1 automobile port in the U.S.” "It's going to have an impact," said Ford CFO John Lawler, "We'll have to divert parts to other ports... It will probably lengthen the supply chain a bit," Our friend Tom Doll, the former CEO of Subaru of America, has been named to Newsweek’s World’s Greatest Auto Disruptors as the 2024 Legacy of Disruption honoree . Doll's 40-year tenure leaves behind a legacy that transformed Subaru into a beloved and LOVE-ing brand. Other Subaru leaders talked about Doll shaped Subaru with grace, confidence, and compassion, fostering an environment of trust and open dialogue across the company. Under Doll's guidance, Subaru launched the Love campaign and the Share the Love Event, moving from price and incentive based selling to create a strong emotional connection with customers by making a $250 donation to a charity of the customer’s choice. These initiatives not only differentiated Subaru but also made the automaker a major donor to the National Parks Service, ASPCA, Meals on Wheels, and Make-A-Wish. "Tom wanted to replace the traditional negative stereotype of car dealers with something that was much better for the customer ex
Tue, March 26, 2024
Nissan Goes for 2030, Fisker Might Go Bust, Starbucks Breakup?
Shoot us a Text. We are wheels up to NYC, but not before a little tour around the world of auto. We are looking at how Nissan is setting up for a model release onslaught, Fisker running out of runway, and Starbucks thinking Locally Global. Show Notes with links: Nissan announced a sweeping three-year strategy , introducing e-Power hybrid tech in the U.S., launching seven new models in North America, and aiming for a significant sales boost. CEO Makoto Uchida unveiled ambitious plans to boost global sales by 1 million vehicles, deploy advanced battery technologies, and cut the cost of EVs by 30% to achieve cost parity with internal combustion vehicles by 2030. The plan, named "The Arc," aims to revitalize Nissan through radical changes, including launching 30 new models globally over the next three years, with a focus on electrification and innovation. "We must make radical changes to become a sustainable company. Disruption is the new normal. We aim to recover volume and drive profit," says CEO Makoto Uchida, emphasizing the necessity for drastic shifts in Nissan's approach to car manufacturing and sales. Fisker's negotiations with Nissan have abruptly ended , throwing the electric-vehicle startup into turmoil. With its shares halted and bankruptcy looming, Fisker is frantically seeking strategic solutions. The company is exploring in- or out-of-court restructurings and capital markets transactions to salvage its situation. Thomas Hayes of Great Hill Capital warns of the growing likelihood of Fisker filing for bankruptcy protection, potentially marking Henrik Fisker's second failed auto startup. Amidst fundraising challenges and less than $100 million in market valuation, Fisker struggled with continual supply chain issues, production delays, and a recent poor review of the Ocean from YouTube influencer Marques Brownlee Fisker's attempt to raise up to $150 million by selling convertible notes has fallen through after missing a crucial interest payment. "I can't put it if it is next week or next year, but it is inevitable," Thomas Hayes, Chairman at Great Hill Capital, on the chances of Fisker filing for bankruptcy. Starbucks has promoted Brady Brewer from Global CMO to CEO of its international business, signaling the end of the traditional CMO role within the company. This strategic move is part of a broader trend among major companies reevaluating the role of marketing in their organizational structure. Star
Mon, March 25, 2024
Slasher Honda, Mini-Lambo, AI Power Grid Probs
Shoot us a Text. It’s the last week in March as we head toward our 5th Friday and 5th Saturday. On our way, we’re covering Honda’s unilateral cut to Dealer profit margins plus BYD's 10k ‘Mini Lambo”, as well as another impending anchor on the power grid. In a move in their shift towards electric vehicles, Honda is cutting dealer profit margins in both the U.S. and Canada, triggering significant industry backlash. Honda announced they will reduce dealership profit margins on new vehicles in the U.S. by 0.5 percent and up to 44 percent in Canada as part of a broader adjustment strategy affecting marketing, advertising, and service payments. The decision has stirred pushback among Honda dealers. U.S. dealers describe the margin cut as "inappropriate but not surprising," reflecting the hefty investments required for the EV transition. Canadian dealers, facing more severe cuts, label the move a "blatant money grab," anticipating a shift of financial burden onto consumers. The reduction is expected to impact dealerships' bottom lines, with U.S. dealers particularly worried about smaller operations. Brian Kanyan, chair of the Honda National Dealer Advisory Board, emphasized the need for dealers to adapt, expressing hope for Honda's support in adjustment efforts. BYD is launching the Seagull EV, dubbed the "Lamborghini mini," which features BYD’s Blade batteries and offers a range of up to 252 miles, that is priced under $10,000, raising concerns among American car manufacturers about their ability to compete on price and innovation. Ford and GM are adjusting their strategies towards more affordable EVs. Ford is focusing on compact electric pickups and SUVs, and GM is planning to introduce a next-gen Chevy Bolt EV. BYD’s aggressive pricing and integrated manufacturing approach are underscoring a broader industry trend towards lower-cost EVs, compelling American manufacturers to innovate or risk losing significant market share. Ford CEO, Jim Farley called the vehicle “pretty damn good” and continued, “If we fail to keep up with Chinese automakers, like BYD, then 20% to 30% of your revenue is at risk... As the CEO of a company that had trouble competing with the Japanese and the South Koreans, we have to fix this problem.” The rapid expansion of AI data centers across the United States is <a href='https://www.morningbrew.com/daily/stories/2024/03/24/the-power-grid-has-an-ai-problem?mbcid=34801515.1973904&mbuuid=4K1nsjYE1CaVeG6TWm7q3D77&mid=bb5979915c77
Sat, March 23, 2024
A Saturday Two-For-One Special
Shoot us a Text. Writers Chris Reeves and Kristi Canada join Head of Community Jordan Cox and Producer Nathan Southwick to talk about 2 inspiring stories from inside dealers. First, we cover how Beaver Toyota of Cumming employees made their annual trip to Camp Twin Lakes to help clean up the camp in preparation for the camp opening. Then, we talk about how 2023 Time Dealer of the Year Gary Rome regularly spends time reading to elementary school classes, bringing his dog along for the kids to pet and play with. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, March 22, 2024
New VW Brand to the US, Super Cheap Lease, Vroom Wound Down
Shoot us a Text. It’s the fourth Friday in March with one still to go as we talk about a new EV brand entering the US market. We also discuss the surprising cheapest lease in America right now, as well as a smooth stop for online retailer Vroom. Show Notes with links: There’s going to be yet another new EV brand in town as Volkswagen Group's sporty, electric vehicle-focused Cupra brand is set to enter the U.S. by the end of the decade, debuting with two utility vehicles and leveraging VW Group's Mexican assembly plants for production. Cupra plans to introduce an electric Formentor crossover and a larger, unnamed electric crossover SUV to the U.S., using a new distribution model the company didn’t articulate In 2023, Cupra's sales surged by 51%, with Germany as its largest market, yet it eyes the U.S. for a bigger global footprint. Focused on "young, progressive customers," Cupra will target selected states, especially on the East and West coasts and the Sun Belt, using a novel distribution model. Current vehicles include the Tavascan, Born, Formentor, Leon, Leon Sportstourer, and Ateca Cupra CEO Wayne Griffiths, emphasized readiness and market fit for their U.S. venture saying"We know it's always been a matter of being well prepared and doing it right if you go to the U.S. Hyundai's Ioniq 6 SE is now America's cheapest lease deal , offering a no-money-down lease for just $239 per month for 12k miles per year Hyundai has rolled out an unadvertised lease offer to dealers for the 2024 Ioniq 6 SE, making it available until April 1, 2024. Comparatively, the Ioniq 6 SE's effective cost of $249 a month undercuts the lease cost of vehicles like the 2024 Toyota Corolla LE in Southern California by over $100 monthly. While the offer applies to a 24-month lease with a 12,000-mile annual limit, it requires only the first month’s payment upfront Cost of ownership may still have a few surprises for lessees as lessees as insurance costs for Ionic 6 might be higher than expected It looks like our friends at Vroom are coasting to a stop as they navigate the final lap of their ecommerce operations. Vroom's journey through the used-car retail market is drawing to a close, with the company anticipating a complete wind down by the end of Q1. Vroom has successfully sold off nearly all its used vehicle inventory as part of its strategy to wind do
Thu, March 21, 2024
Interest Rates Ups and Downs, Cheaper Used Cars, Charge Wars Over
Shoot us a Text. It’s Thursday and we're talking about the impact of the Fed’s interest rate decision on Dealers. We’re also covering the dramatically changing used car market, as well as the end of the charging platform wars as we’ve known them. After the Federal Reserve's decision to keep interest rates steady at 5.25-5.5%, auto dealerships face a mixed bag: relief from further hikes but challenges from existing high rates continue. Yesterday, the Federal Reserve decided not to adjust the benchmark interest rate, remaining at 5.25-5.5%. This was primarily due to a preference for a 2% inflation target while recent figures showed a 2.4% increase year over year in January. Currently, The average interest rate for new vehicle loans rose to 7.2%, with used vehicles at 11.9% in Q4 2023. According to Cox Chief Economist Jonathan Smoke, the anticipation of future rate cuts could deter consumers from making immediate purchases. A week ago, Smoke said, “"It sends a clear message that, 'You need to wait because rates are going to be lower later in the year, so it takes a lot of urgency out of thinking of buying right now." According to a recent dealer sentiment poll, Interest rates remain a top challenge for franchised dealers, with 70% indicating a negative impact on their business. The gap between new and used vehicle prices is widening, leading to a significant rise in sales of used and certified pre-owned vehicles, according to a new report from ZeroSum. The average list price for used vehicles is decreasing for the eighth consecutive month, from $30,000 in June to just over $26,000. The average new-car price is falling below $50,000 for the first time in over a year, but the decline in used-car prices is outpacing this, widening the price gap between new and used vehicles. Used vehicle inventory is dropping to 1.89 million units, still far above February 2023’s 1.34 million, while the turn rate is jumping from 57% in January to 71% in February. The certified pre-owned segment is rebounding from a slow fourth quarter to reach 163,000 sales in February. Inventory is dropping below 200,000 units for the first time in five months, and the turn rate is soaring to 86% It looks like the charging platform wars are winding down for good as ChargePoint announces the integration of Tesla’s North American Charging Standard (NACS) connector cables into its EV charging infrastructure. This move, originating from the Campbell, California-base
Wed, March 20, 2024
Dealer Mega-Deal, Ford Skunkworks Update, Buc-ee’s Heads West
Shoot us a Text. Welcome to Wednesday as we talk about the latest mega acquisition deal. We also cover the latest on Ford’s internal skunkworks EV project as well as a big move west for gas-station chain Buc-ee’s. Following an initial announcement of a deal back in January, Holman expanded its auto retail empire by closing on the acquisition of Leith Automotive Group, a move that nearly doubles Holman's dealership count. This strategic acquisition includes over 20 franchised dealerships across North Carolina, marking the largest buy in Holman's century-long history. The deal, which also brings 1,900 new employees to Holman, bringing their total employee count to 4500 while introducing 13 new brands to its portfolio The Leith name will remain on the acquired stores Chris Conroy, Holman CEO: "This acquisition...puts our business in a position to win for the next 100 years." Prior to the acquisition, Leith was the first Dealer to partner with Vietnamese EV maker Vinfast Ford is gearing up to counter the influx of affordable Chinese EVs with its own low-cost electric platform with new information surfacing since their announcement last month of an internal skunkworks project to develop low cost EVs quickly Set to debut in 2026, this initiative will introduce three new EV models: a compact SUV, a small truck, and possibly a ride-hail service vehicle, starting at $25,000. The vehicles will be powered by cost-effective lithium-iron-phosphate (LFP) batteries, are intended to accelerate Ford's strategic shift towards making profitable, accessible EVs within a year of their launch, contrasting sharply with its previous focus on trucks and SUVs Jim Farley, Ford CEO said "The ultimate competition is going to be the affordable Tesla and the Chinese [automakers]." The first Colorado Buc-ee's has opened in Johnstown, CO bringing its renowned travel center experience, known for pristine restrooms and freshly prepared food, the facility offers an array of amenities, including a brisket west of Texas. This new location spans 74,000 square feet and features 116 fuel pumps, staffed by over 275 employees to maintain 24/7 operations. Coloradans, previously unfamiliar with Buc-ee's, ventured for the first time, intrigued by its offerings as fans eagerly lined up outside the front doors in the early hours of the morning, cheering as doors opened at 6 a.m. Families like the Cowins’, combined their spring break outing with exploring Buc-ee's vast a
Tue, March 19, 2024
EV Final Rule Is a Win For OEMs, VW Union, Shredding EGs
Shoot us a Text. It’s Tuesday and the Auto Industry is alive and well as we talk about the DOE final rules on EV requirements that are a win for OEMs. We also talk about the pending UAW vote at VWs Chattanooga plant as well as the legendary metal band, Metallica, going an an EV/hydrogen powered tour. The finalized U.S. EV mileage ratings rule brings relief to automakers, reducing the risk of heavy fines and easing the transition to electric vehicles, a significant shift from the Department of Energy's initial proposal. The Department of Energy's final rule softens its initial proposal, lowering the compliance value of EVs by 65% through 2030, allowing automakers more time to adjust. Detroit 3 and the UAW voiced concerns that the original proposal could lead to $10.5 billion in fines through 2032 for failing to meet fuel economy requirements. The revision was influenced by automaker and UAW feedback, aiming to balance environmental goals with industry realities. The EPA's upcoming vehicle greenhouse gas emissions requirements are also set to be less stringent than proposed, promoting a gradual increase in EV production. This ruling is also seen to be a boost to hybrid and PHEV sales Workers at Volkswagen's Chattanooga plant are pushing to join the UAW, marking a pivotal moment in the union's efforts to expand its influence across foreign-owned automakers in the South. Volkswagen Chattanooga employees have filed for a union election with the NLRB, demonstrating a "supermajority" interest in joining the UAW. This is the third attempt in 10 years to unionize the plant, with the last narrowly failing A successful vote at VW would be a landmark victory as the UAW's persistent efforts to unionize foreign auto plants in the South have faced significant political and legislative challenges over the years. VW has committed to supporting an NLRB-administered secret ballot, ensuring every employee's voice is heard, with the election timeline to be set by the NLRB. President Biden and presumptive Republican rival Donald Trump are keenly watching the UAW's moves, with Biden expressing support for the workers' right to unionize, reflecting the national political significance of the union's campaign. "The decision whether to join a union belongs to the workers," stated President Joe Biden, endorsing the workers' efforts and the importance of union representation. Heavy Metal band Metallica is te
Mon, March 18, 2024
Is Tesla A Luxury Brand, 100% Tariff On Chinese EVs, Ultimate Retirement Flight
Shoot us a Text. Welcome to a beautiful Monday in Retail Auto as we weigh the merit of Tesla being labeled as a ‘Luxury brand’. We also discuss Trump’s proposed 100% tariff on China-made EVs as well as one Delta Pilot’s epic retirement flight. Gone are the days of Tesla being synonymous with luxury according to our friend and Executive Editor of Automotive News, Jamie Butters as his recent column makes a compelling case for why Tesla's recent strategy and market performance have propelled the electric vehicle giant out of the luxury realm and into a broader, more inclusive arena. Tesla is no longer classified as a luxury brand but has transitioned towards a broader market presence. Initially positioned as a luxury marquee due to high prices and innovative technology, Tesla has adjusted its strategy towards affordability and mass-market appeal. With price cuts and an increase in sales volume, Tesla now competes more directly with mainstream automotive brands rather than luxury ones. The introduction of the more affordable Model 2 signifies Tesla's commitment to accessibility, moving away from the exclusivity typically associated with luxury brands. Despite continuing to sell high-end models, Tesla's overall strategy and market positioning align more closely with mainstream automotive brands. In a rally in Dayton, Ohio on Saturday, former President Donald Trump proposed imposing a 100% tariff on cars produced in Mexico by Chinese companies, doubling previous tariff threats on vehicles manufactured south of the U.S. border. Trump directly addressed Chinese President Xi Jinping, emphasizing the tariff as a countermeasure against China's manufacturing strategy in Mexico without hiring Americans. The proposed tariffs represent a significant escalation from earlier threats, which included a 50% tariff on Chinese cars and potential tariffs on all Chinese goods and global products. “Those big monster car manufacturing plants you are building in Mexico right now and you think you are going to get that — not hire Americans and you’re going to sell the car to us, no,” Trump said. “We are going to put a 100 percent tariff on every car that comes across the lot.” Joe Biden's campaign responded to Trump's remarks, criticizing his approach and labeling the threats as political violence and extremism. Meet Delta Captain Keith Rosenkranz, the pilot who orchestrated a unique retirement celebration by chartering a Delta Airbus A330 for a specia
Sat, March 16, 2024
The Heart of Hospitality Opens The Door For A Magical Experience
Shoot us a Text. Writers Chris Reeves and Kristi Canada join Kyle Mountsier on this Saturday to share the story of a BMW dealer who turned a flat tire into a moment of unreasonable hospitality . Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, March 15, 2024
Jim Farley Hits the Road and Cars are Getting Judged and X-rayed
Shoot us a Text. Welcome back to the pod Michael Wood, whose dogs are as excited about this show as we are! Today we are looking at the road trip Jim Farley is about to embark on, how customers perceive automakers and dealers, and a car going under the microscope…er, x-ray machine! Show Notes with links: Ford Motor Co. CEO Jim Farley is embarking on a nation-wide " engagement tour " with dealers to discuss key issues including electrification, quality, and affordability. Starting in Dearborn and visiting cities like Los Angeles and Atlanta, the tour aims to gather insights directly from a broad section of Ford's dealer network through 12 in-person meetings. Farley, responding to the Ford National Dealer Council's request, aims to understand dealer perspectives on industry challenges, regulatory compliance, EV transitions, and competition. They plan to invite retailers of all sizes, including some who didn't sign up to sell EVs. Joining Farley will be COO Kumar Galhotra, CMO Lisa Materazzo, Ford Model e COO Marin Gjaja, Ford Blue President Andrew Frick and Ford Pro CEO Ted Cannis. “Our quality has gone down as much as our prices have gone up. That has to be addressed.” said O.C. Welch, dealer principal at O.C. Welch Ford-Lincoln in Hardeeville, S.C. Eddie Hall III, COO of Hall Automotive Group said, "I'm used to being a brand for the masses. While I think we have a phenomenal lineup, I still want to be able to sell vehicles to the customers I have been selling to for so long." Customer satisfaction with dealer services sees a slight improvement in 2024, but parts and labor shortages continue to stretch appointment wait times, as per the latest J.D. Power CSI Study . Average wait time for an appointment has risen, with mass market vehicle owners facing a 5.2-day wait, up from 4.8 days in 2023. Costs for dealer visits have jumped 30% in the past two years due to inflation and rising parts and labor costs. Lexus ranks highest in satisfaction with dealer service among premium brands for a third consecutive year, with a score of 897. Buick ranks highest in satisfaction with dealer service among mass market brands with a score of 887. MINI (884) ranks second and Subaru (877) ranks third. Mercedes-Benz, in a pioneering collaboration with the Fraunhofer-Institute for High-Speed Dynamics, conducted the world's first X-ray crash test . This breakthrough method, utilizing a linear accelerator as an X-ray camera
Thu, March 14, 2024
Pi Day is for EVs, We Guess
Shoot us a Text. It isn’t Pi day if we don’t mention it, and we are excited to ask Michael Wood what his favorite “pie” is. Today, we are all in the EV space chatting about broadening lineups for Hyundai, VW, and Jaguar. Hyundai is gearing up to expand its electric vehicle lineup with the IONIQ 9, a first-of-its-kind three-row electric SUV from the automaker. The IONIQ 9, Hyundai's first three-row electric SUV, follows the success of the IONIQ 5 and 6, with the IONIQ 5 ranking as the sixth top-selling EV in the US last year. Utilizing Hyundai's E-GMP platform, the IONIQ 9 promises exceptional space and performance, possibly offering more rear legroom than luxury competitors like the Cadillac Escalade. Set to start production in the first half of the year, with US sales expected in mid-2025, the IONIQ 9 will be manufactured at Hyundai’s new EV Metaplant in Georgia, aiming to qualify for the $7,500 EV tax credit. The brand is expected to unveil the model in June. Volkswagen, once embroiled in the Dieselgate scandal, is now at the forefront of the electric vehicle revolution , embarking on its most ambitious product launch to date on its way to a 100% EV future. VW's transformation into an EV powerhouse is marked by the announcement of over 30 new models across its brands, aiming for a record year in 2024. "We will invest in our last-generation of ICE vehicles,” which are especially key for hybrids, board member and CFO Arno Antlitz said. Then, he said, “These investments are going to be phased out.” In 2023, the VW Group saw deliveries rise 10% globally with an operating profit of €22.6 billion (about $25 billion.) Jaguar is embracing an all-electric future with plans to exclusively produce electric vehicles by 2025, including luxury SUVs. This bold transition marks the end of the line for its internal combustion engine (ICE) models as Jaguar seeks a fresh start with a trio of new electric vehicles on a brand-new platform. Jaguar will discontinue all current ICE and EV models, including the I-Pace, by 2024 and 3 new electric vehicles, including SUVs, will replace the existing lineup, signaling a major shift towards sustainability and innovation. The introduction of a 600 bhp electric four-seat GT car, comparable to the Porsche Taycan, will kickstart Jaguar's new era, with indicative pricing around $127,000 and
Wed, March 13, 2024
Tesla vs Rogue: Guess which one is implementing deep discounts?!
Shoot us a Text. Hump day has arrived yet again and Nissan is again attempting to get over the hump of overproduction. On the EV side of things, Tesla is beginning to crack down on resellers and a couple companies are bringing supercar power to their EV lineup. Nissan battles a surplus of 2023 Rogue models, turning to dealer incentives to clear inventory as new 2024 Rogues arrive. Nissan currently has over 24,000 unsold 2023 Rogues, and has seen the longest turn (55 days) in comparison to other compact crossovers. Nissan is deploying sales incentive strategies not seen since before the pandemic where dealers can get a $1,000 bonus per 2023 Rogue sold if March sales targets are met. Nissan admits to overestimating demand, now implementing strategies, including long-term financing offers, to mitigate surplus. "We probably were uber-aggressive on what we took in production," says U.S. sales chief Judy Wheeler. Tesla has begun enforcing its no-resale clause on early Cybertruck owners, canceling additional reservations for those attempting to sell their pickups for profit. Tesla has issued a statement and begun canceling reservations for owners selling their Cybertrucks, enforcing a "no resell" clause to prevent flipping for profit. Some Cybertrucks have sold at auction for over $200,000; even Ford purchased one, likely for reverse-engineering. Tesla refunded $100 deposits for canceled reservations but warned it won't do business with sellers in the future. Porsche has set a new lap record at the iconic Laguna Seca Raceway. The Taycan Turbo GT, Porsche's latest electric marvel, eclipsing the previous best time set by a Tesla Model S Plaid. The Turbo GT model’s starting price is $231,995 and is capable of hitting 60 mph in 2.1 seconds with a top speed of 190mph. Porsche CEO Oliver Blume was unable to make it in person for the lap, but watched it on Porsche’s Apple Vision Pro race app. Several days later, the EV also set the top lap at the Nürburgring race course, once again beating the previous best time by a Tesla Model S Plaid. Meanwhile, BYD has unveiled the Yangwang U9 , an all-electric supercar that
Tue, March 12, 2024
Connectivity Resulting in Driver Exposure and an Exposed Purchase
Shoot us a Text. The world is seemingly upside down again as Ben Hadley joins the pod to chat about a digital asset auction gone wild, automated driving under scrutiny, and insurance companies getting more data than consumers may have bargained for. It’s all fun and games until your favorite car gets in an accident…with technology at the wheel. Recently the IIHS has provided a rating of 14 driver assistance softwares across 9 manufacturers, all of which received marginal or poor marks. There's no evidence of real-world safety benefits from these systems, with the IIHS citing a lack of reduction in insurance claims. Despite Tesla's claims of safety, federal regulators are investigating nearly 1,000 accidents involving Autopilot. Lexus's Teammate with Advanced Drive system received an "acceptable" rating, standing out among its peers. "We have been able to look at vehicles with and without these (systems) and determine there is no reduction in claims as a result of these more advanced systems," says IIHS President David Harkey. We all love the idea of a connected car, but it looks like insurance companies are taking liberties with the data available from manufacturers connected systems to determine insurance rates per driver. Kenn Dahl, a careful driver from near Seattle, was stunned when his insurance spiked by 21% due to data collected by his Chevy Bolt and shared by General Motors with LexisNexis. LexisNexis' report on Dahl detailed over 640 trips, monitoring speed, braking, and accelerations but not locations, affecting his insurance rates. GM and other automakers collect driving data for insurance purposes, often with driver consent buried in fine print or unknown to the driver entirely. Jen Caltrider, a researcher at Mozilla who reviewed the privacy policies for more than 25 car brands last year, called cars “a privacy nightmare.” How to Find Out What Your Car Is Doing See the data your car is capable of collecting with this tool: https://vehicleprivacyreport.com/. Request your LexisNexis report: https://consumer.risk.lexisnexis.com/consumer Request your Verisk report: https://fcra.verisk.com/#/ After filing for bankruptcy in October, a California court has sanctioned the sale of Shift Technologies' digital assets , including domain names, trademarks, and social media accounts. TrueCar founder Scott Painter won the domain names, tra
Mon, March 11, 2024
Marques Brownlee Downs Fisker while Rivian and GM are Reviving
Shoot us a Text. Just another EV Monday! The weekend was a bit light for automotive news, but GM is bringing back the Blazer EV, Rivian handed out Steve Jobs style surprises, and Marques Brownlee threw shade on the Ocean. General Motors reignites the electric vehicle (EV) market by resuming Chevrolet Blazer EV sales at reduced prices, addressing past software glitches with significant updates and improvements. GM halted Chevrolet Blazer EV sales in December due to infotainment and fast charging issues, but now confidently resumes with software enhancements and a price cut. The updates include new features like customizable ambient lighting and a battery percentage display, with existing owners needing dealership visits for software upgrades. Despite not pinpointing a singular fault, GM emphasizes improved quality testing and software processes to avoid future issues. Price reductions across various Blazer EV trims aim to boost sales, alongside eligibility for a $7,500 federal tax credit. EV startup Fisker faces backlash after a failed attempt to mitigate criticism from tech reviewer Marques Brownlee, exposing deeper financial woes. Marques Brownlee's scathing review of Fisker's Ocean SUV has gone viral, amassing over 4.3 million views for highlighting numerous design and software issues. Brownlee originally asked Fisker for a vehicle, but they kept delaying, resulting in the Youtuber borrowing a vehicle from J&S Mitsubishi. The EV maker asked Brownlee to wait until the car could receive the 2.0 software update, but he declined. "It's not really in my policy to wait on promised future software updates,'" Brownlee said in the YouTube video. "I'm going to review the car that's out now, that real buyers are actually living with." The title of the video is “This is the Worst Car I’ve Ever Reviewed.” A supposed senior Fisker engineer's call to the dealership loaning Brownlee the car backfired, with a recording by the dealership revealing software problems persist post-update, attracting 3.6+ million views on TikTok. Amidst the PR disaster, Fisker announces financial instability, casting doubt on the company's future viability. Channeling their inner Steve Jobs, Rivian had “one more thing” during its R2 reveal event. The EV maker introduced the R3 and R3X, a sportier and slightly shorter electric SUV than the R2, catching the audience by surprise. Rivian's approach to the R3 showcases a strategic expansion of its electric vehicle
Sat, March 09, 2024
This Dealership Asked Its Community Where They Should Donate $100,000
Shoot us a Text. Head Writer Chris Reeves is joined by Head of Community Jordan Cox and Producer Nathan Southwick on this Saturday to bring you the story of the Park Place Dealerships having their 3rd Annual Season of Giving where they give $100,000 to the community. 400 local non-profits were able to apply for the money and the dealership selected 18 final recipients focused on education, medical research, children's advocacy, and the arts. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, March 08, 2024
Dealer Trust Results, Gen Z plus F&I
Shoot us a Text. It’s the second of five Friday’s in March and we’re talking about the results of a new Dealership Trust Survey. We also get into some specifics on Gen Z’s preferences in the F&I process, as well as peeking at the new Rivian R3 surprise release. Show Notes with links: The KPA Dealership Trust Survey sheds light on a significant trust gap in the automotive retail sector, with a majority of consumers skeptical about dealership honesty in pricing and practices. The survey conducted by the Harris Poll, surveyed over 2000 adults in January 2024. Over 30% of respondents had a negative experience, while over 75% had a negative perception. On the experience side, 34% have felt pressured to purchase ‘add-ons’, 30% agreed on the price only to find hidden fees on final paperwork, 28% felt the salesperson was trying to trick them into a deal, 29% left and went to another dealership because they didn’t think they were being honest in their pricing On the perception side, 86% are concerned about hidden fees, 76% don’t trust car dealerships to be honest with pricing, 84% say price transparency is lacking at most car dealerships. 84% say reviews are important, with 93% of Gen Z using reviews.Negative consumer reviews significantly impact dealership reputation, with 12 positive reviews counteracting one negative one. Gen Z are ages 12-25 and now make up 18% of the US and according to a Cox study presented at the 2024 NADA show, have a unique appetite for F&I products . Yet, contrary to expectations, the key to unlocking this potential isn't purely digital. Despite being digital natives, Gen Z buyers prefer a blend of online research and in-person dealership experiences, underscoring the need for a holistic sales strategy from the start. According to the presentation by Cox’s Tracy Fred, "These are people who will spend time online doing the research" and then come into the dealership, Fred told Automotive News. So "rather than waiting until the very end of the sale [to pitch financing], move that up to the front so you are talking about the whole deal holistically from the beginning." Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, March 07, 2024
Carvana Not Focused on Growth, Leaked Rivian Release,
Shoot us a Text. It’s Thursday and we’re talking about Carvana’s strategic pivot from growth to efficiency. We’re also talking about Rivian’s leaked release details of today’s R2 drop Show Notes with links: As the market continues to tighten, Carvana CEO Ernie Garcia is leading the company in a strategic pivot from growth-focus to focusing on unit economics, emphasizing execution in scaling operations "When that investor support evaporated and we clearly had to be capital independent, it forced us to basically reverse those priorities," said Garcia, who spoke Monday at a technology, media and telecom conference held by investment banking firm Morgan Stanley.” The company aims to sell more vehicles in Q1 2024, focusing on stability and cost reduction, especially in logistics Garcia identifies Carvana's logistics network as a key area for reducing costs, pointing out potential savings in vehicle transport by leveraging newly acquired ADESA reconditioning centers. Additionally, Carvana aims to enhance gross profit through smarter credit pricing and strategic vehicle acquisitions. Garcia sees electric vehicles as a significant opportunity, with Carvana having a larger market share in EVs than in ICE vehicles. "We couldn't ask to be in a better spot," Garcia optimistically notes, despite acknowledging the challenges ahead. Internet sleuths have given us an early glimpse at the Rivian R2's specs , revealing exciting details ahead of its official unveiling today. The R2 is poised to offer up to a 330-mile range and a starting price of $47,000, aiming for a 2026 market debut. Expect a zippy three-second 0 to 60 mph acceleration from this compact SUV, although likely reserved for the top-tier models. It's designed as a five-seater with a 115.6-inch wheelbase, and comes with features like a powered rear glass and a tool-less bike mount. Rivian's CEO, RJ Scaringe, hints at a vehicle that's both smaller and more affordable than the R1, aligning with financial forecasts. Amidst the anticipation, Rivian faces workforce reductions, with about 100 employees laid off at its Normal, IL factory, underscoring ongoing challenges. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: <a href='https://www.asotu.com/media/
Wed, March 06, 2024
GM’s Hydrogen Play, Physical Button Comeback, Target Subscription
Shoot us a Text. Welcome to a beautiful Wednesday in Retail Auto as we talk about GM’s collab with the US Department of Energy on hydrogen powered vehicles. We also talk about Europe’s efforts to enhance vehicle safety by bringing back buttons, as well as a new annual subscription from retail giant Target. Show Notes with links: GM has been awarded $26 million in federal funding to develop hydrogen fuel cell-powered medium-duty trucks, as a part of the U.S. Department of Energy's SuperTruck 3 program. GM will collaborate with Southern Co. and Nel Hydrogen US to introduce the trucks in Georgia, alongside efforts to establish a supportive hydrogen microgrid. The $65 million project, partially funded by the Energy Department and U.S. Army's Ground Vehicle Systems Center, aims for a 75% greenhouse gas emission reduction. The pilot trucks will mirror the 2024 Chevrolet Silverado 5500 and will feature over 300 miles of range as well as the capacity to generate over 300 kilowatts of power. GM and Honda began producing hydrogen fuel cell systems through a joint venture near Detroit in January, and is working with Autocar Industries to put hydrogen fuel cells in vehicles such as cement mixers and roll-off trucks starting in 2026 European car makers are being urged by the European New Car Assessment Program (Euro NCAP) to reintroduce physical controls for basic functions to enhance driving safety, effective from January 2026. Euro NCAP's new rules aim for cars to have tactile controls for essential functions, like hazard warning lights, indicators, windscreen wipers, SOS calls, and the horn, to maintain a five-star safety rating. The move addresses the risk of driver distraction caused by the prevalent use of touchscreens for key vehicle controls. Many manufacturers have moved to touchscreens as a cost-cutting method. Target announced the launch of Target Circle 360, a $99/year subscription program offering various benefits, including unlimited free same-day delivery, aiming to revitalize its e-commerce strategy. Target Circle 360 includes free same-day delivery (in some cases, under an hour) for orders over $35 and perks like two-day free shipping, leveraging Target's acquisition of Shipt for delivery logistics. CEO Brian Cornell emphasizes the program's role in meeting customer demand for convenience, while the company also revamps its free Target Circle loyalty program for a
Tue, March 05, 2024
Store Count Down-Throughput Up, AI Credit Misquotes, Cybertruck Sale Rebellion
Shoot us a Text. Welcome to Tuesday as we talk about franchise dealership count going down while throughput goes up on the other side of the seesaw. We also talk about Dealer complaints about the use of AI in credit leading to misquotes on payments, as well as a follow up on the dealer-purchased Cybertruck from last week. In 2023, the U.S. saw a slight decrease in new-car dealerships but a notable rise in sales per franchise underscoring the balance between efficiency and high demand. Note: The count excludes excludes BrightDrop, Fisker, Karma, Lucid, Rivian, Tesla and VinFast The U.S. new-car dealership count dropped to 18,133 in 2023, while average sales per franchise surged 14% to 483 vehicles, up from 425 General Motors and Ford led the charge in reducing franchise counts, contributing to an overall 3.6% decrease in franchises. Notably, Buick dealerships nearly halved from 1958 to 1052, but doubled their throughput to 111 Lincoln cut 100 of its US franchises bringing the total count to 535 and has plans to cut 100 more this year Hyundai and Genesis are expanding their standalone presence, signaling a shift towards more brand-exclusive dealerships. "We are well on our way to 75 percent-plus of our network upgrading their facilities by 2025," says Hyundai spokesperson, highlighting a focus on modernization and brand distinction. A staggering 90% of dealers and lenders report frustrations with AI in digital lending solutions, claiming it often results in inaccurate online payment quotes, a poll by eLEND Solutions reveals. The majority feel that AI's approach to evaluating consumer creditworthiness doesn't align with the reality of customer negotiations, leading to mismatched payment terms. "Lenders aren't even pricing to those [rate sheet] tiers any longer," eLEND CEO Pete MacInnis told Automotive News. "Some are, but most of your major ones have this dynamic pricing model" tied to the unique customer and their vehicle choice. Despite AI's sophistication, 76% of initial digital retail quotes reportedly fail to match final lender decisions, highlighting a disconnect between technology and practical application. The Porsche dealer that turned heads last week by acquiring a Cybertruck for $244,000, at a Manheim auction now has it listed for $289,999 Porsche South Orlando acquires a Cybertruck for $244,0
Mon, March 04, 2024
This OEM Cares More About Consumer Demand Than EPA Fines
Shoot us a Text. Happy first week of the month (and happy birthday to our very own Paul Daly). Today, we’re covering Toyota’s concern over consumer demand, the fastest EV charger ever and robotaxis rolling on. Show Notes with links: Toyota continues to project a measured future for BEVs , with North America CEO Ted Ogawa estimating they'll constitute just 30% of U.S. sales by 2030, diverging from more ambitious EPA targets. "I know that EPA is now reconsidering what the regulation level should be,” said Ogawa in an exclusive Automotive News interview. “However.. our starting point is what the customer demand should be… We are respecting the regulation, but more important is customer demand." The EPA’s light vehicle standards as proposed require 54-60% BEV penetration by 2030. Current analysis doesn’t include PHEVs, but the agency plans to include it in the final rule. 2024 is the starting year for Toyota’s “multi-path” strategy, offering different levels of electrification in America, with Ogawa calling the shift “one of my challenges this year.” Toyota plans to use credit purchases to comply with regulations, while prioritizing investment in EVs and hybrids, including a $13.9 billion battery complex in Liberty, N.C. "Wasted investment is worse than the credit purchase," said Ogawa. Gravity Mobility, backed by Google, has launched the fastest public EV charging solution in the U.S. The startup has introduced 24 chargers in New York, currently only open to fleet operators. The chargers have a 500 kW capacity, capable of charging 200 miles in 5 minutes, equating to 2,400 miles of range per hour. The company's chargers are the size of a carry-on suitcase and Gravity plans to manufacture and deploy thousands of chargers annually, with further sites in development beyond their initial Midtown Manhattan location. Most EVs currently have a charging speed cap of 350 kW, but future models are expected to support faster charging capabilities. Competitor ChargePoint announced a product capable of 500 kW charging for two vehicles simultaneously, while Tesla Superchargers offer up to 250 kW. The self-driving robotaxi is not dead yet as Waymo has received approval to operate its vehicles up to 65mph on highways in parts of Los Angeles and the Bay Area, following a California regulator's decision. The company plans a "careful and incremental" expansion without immed
Sat, March 02, 2024
A Fashion Show at a Dealership? Yes, Please...
Shoot us a Text. Writers Chris Reeves and Kristi Canada join the show today to tell about a Regina, Saskatchewan dealership that turned its showroom into a catwalk . Regina Mercedes hosted a night of Champagne, Leather and Lace where proceeds benefited the local YWCA. If you have a story of a dealer making a difference in their community, let us know by sending an email to crew@asotu.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, March 01, 2024
It Wasn’t Amazon Who Bought that 244k Cybertruck
Shoot us a Text. It’s the first day of March and we’re talking about Dealer concern over the growing Amazon-Hyundai partnership. We’re also discussing new entrant EV makers Fisker and Polestar’s current state, as well as getting to the bottom of who paid 244k for a used Cybertruck. U.S. auto dealers are torn over Hyundai's partnership with Amazon , fearing a shift towards a Tesla-like direct sales model. A majority in a recent survey view the venture with skepticism, questioning its impact on the traditional car-buying experience. Over half of the surveyed dealers in the recent Automotive News 2024 Dealer Outlook Survey view the online retailing program negatively, predicting a move away from traditional dealership roles. Amazon aims to redefine car buying with a click-to-buy experience, yet dealers worry about impacts on customer service and profit margins especially regarding F&I income "Many dealers believe what Hyundai and Amazon are co-developing will lead to more of a direct-to-consumer sales model," captures the industry's apprehension towards changing retail landscapes. Fisker's recent warning about its future viability is underscoring the rocky journey of EV startups as it transitions to a dealership model and misses production targets has impacted its sales and financial stability, leading to a concerning "going concern" warning. Despite ambitious production goals, Fisker built just over 10,000 vehicles in 2023, delivering only 4,900 to customers, far below its 13,000-unit target. The company's stock took a significant hit, plummeting 34% after-hours to under 50 cents a share, reflecting investor skepticism. Henrik Fisker admits, "We recognize that the EV industry is going through a turbulent period," highlighting the challenges facing the electric vehicle market amidst cooling demand and heightened competition Meanwhile, EV competitor Polestar has secured funding of $1B from 12 global banks backing its journey towards innovation and expansion. Chinese EV maker Geely, remains a strategic partner and direct shareholder, reaffirms its commitment to Polestar's success, promising continued operational and financial support. Who bought the Tesla Cybertruck <
Thu, February 29, 2024
Apparently Car Shoppers Care About This, ICE Green Winner, Surge Burger
Shoot us a Text. We’re going to make the most of this bonus leap-year day as we talk about something that impacts the car shopping process most. We also cover the undisputed most efficient vehicle, as well as the potentially undisputed fastest EV. You may very well be surprised to hear that the most efficient vehicle you can drive still has an ICE engine in it. New EVs still can't beat the efficiency of a plug-in hybrid like the Toyota Prius Prime. The Toyota Prius Prime is outperforming the latest fully-electric vehicles in the U.S., holding onto its title as the greenest car. Despite the rise in EVs, none have surpassed the efficiency of the Prius Prime, thanks to its smaller size and lighter weight. The GreenerCars report of 2024 finds the Prius Prime leading with a green score of 71 out of 100, assessing emissions from manufacture to road use. For reference, the EV Hummer scored a 26. The Mercedes-Benz AMG G63 had the lowest score at 20. While the middle of the list included the Toyota Sienna Hybrid (55) and the Lexus ES 300h (59) A recent survey reveals that the dealership experience significantly influences car buyers, boosting their confidence in their purchase decisions and impacting their vehicle choice. ChangeUp's survey found that 84% of car buyers felt their dealership visit influenced their buying decision, with 90% gaining confidence in their choice from the experience. Most surprisingly, Millennials and Gen Z shoppers, in particular, value the dealership visit highly, with a significant percentage unsure of their vehicle choice until visiting in person. "The dealership is so much more than just a transactional space," says Lee Carpenter of ChangeUp, emphasizing the opportunity to design a meaningful retail experience. Wendy's is stirring the pot with its announcement of dynamic menu pricing, a strategy that could change how we pay for fast food, but recent clarifications issued after significant blow-back suggest a more nuanced approach than initially perceived. Wendy's was to test dynamic pricing, potentially adjusting the cost of items like the Dave’s Single based on demand, with a $20 million investment in digital menu boards to facilitate real-time changes. But then an onslaught of critics and consumers expressed concerns over the fairness and reception of fluctuating prices, drawing parallels to failed experimen
Wed, February 28, 2024
AppleCar Sendoff, BYD Ditches US Market, Market Pricing
Shoot us a Text. Big shifts are everywhere on this day before the leap year day as Apple cuts the bait on the AppleCar, BYD has announced they will not be pursuing the US market, and Jag-Land Rover are ditching their agency model plans. CarPlay may be the best iPhone users can hope for in their car as Apple is officially shutting down its EV program Project Titan , reallocating resources to developing its AI capabilities. Billions invested and numerous strategy shifts later, Apple acknowledges the complex challenges of the automotive sector, choosing to focus on its strengths in AI. Some developers from the car project are transitioning to AI roles, while those who work on hardware will likely be facing layoffs "Apple canceling this project is a sigh of relief for us," shares Dan Morgan from Synovus Trust, highlighting the challenging fit of automotive projects within Apple's portfolio. Jeff Schuster, global vice president of automotive research at consultant GlobalData said “They (Apple) certainly had the most downside,” he said. “Tesla benefits big time from being a status vehicle. And an Apple EV definitely would be a status vehicle.” Elon Musk on Tuesday sent a post on X with a saluting emoji and a cigarette. Chinese EV maker BYD has decided against launching its electric vehicles in the US , citing the market's complexity and political entanglements as major deterrents as the company's focus turns to strengthening its presence in Mexico with a new manufacturing facility. Stella Li, BYD Americas' CEO, highlights the US EV market's intricate landscape, discouraging the Chinese automaker's entry. Li criticizes the US's slower electrification pace and the confusing political climate, contrasting sharply with China's robust EV adoption and clear policies. "If you are not investing for electric car, you are out. You will die. You have no future," Li asserts, emphasizing the stark difference in EV market dynamics between the US and China. In the first of possibly many about-faces, Jaguar Land Rover is abandoning its agency model plans in the UK as it opts to maintain its traditional franchised sales model amidst retail partner consultations. JLR is backing away from its fixed-price, no-haggle sales strategy, opting instead to stick with its current dealership model rather than moving to
Tue, February 27, 2024
Loyalty is BACK, Toyota Engine Captures Carbon, Small Biz Owners
Shoot us a Text. It's Tuesday and we’re talking about customer loyalty coming back according to a new market study. We’re also covering a Toyota engine that actually captures carbon, as well as the resilience of Small Business Owner Optimism. Owner loyalty is making a comeback as General Motors and Tesla lead the pack in S&P Global Mobility’s 28th Annual Automotive Loyalty Awards, with GM capturing the Overall Loyalty to Manufacturer award and Tesla shining in Overall Loyalty to Make. Tesla also walked away with awards for: Ethnic Market Loyalty to Make, Highest Conquest Percentage, Alternative Powertrain Loyalty to Make The Ford F-Series* took the top spot for light duty trucks, while the GMC Sierra 2500/3500 topped the heavy duty truck segment After several years of steep declines, S&P's analysis of over 12.6 million new vehicle registrations signals a rise as loyalty levels have stabilized and are on the rise for the first time since 2019, as manufacturers enhance retention strategies and inventory levels improve. The Lincoln Nautilus is claiming the spotlight in the newly established Overall Loyalty to Model category, highlighting its appeal to loyal customers. S&P Global Mobility president of automotive insights Joe LaFeir said in a news release, “The past few years have shown us customers are becoming more comfortable to consider and purchase a new vehicle outside their preferred brand,” but continued that OEMs focused efforts are being effective to combat the trend Toyota has been working on an engine that's actually carbon negative , introducing a groundbreaking carbon capture technology that cleans the air as you drive. Toyota is pioneering carbon capture engine technology in the GR Corolla race car, potentially making engines carbon neutral or even carbon negative. This cutting-edge hydrogen powered combustion engine actually captures carbon dioxide directly from the air through a special filter without requiring additional energy Despite the hurdles in commercialization and the technology currently removing only small amounts of CO2, but it's a great start When it comes to optimism about the economy, small business owners are leading the way , showing resilience in the face of inflation concerns, according to the latest CNBC SurveyMonkey Small Business Confidence Index. Small business owners are remaining upbeat about the economic outlook, with the CN
Mon, February 26, 2024
Extinction-Level Event, Craigslist Markup, Get A Free Donut
Shoot us a Text. It’s a fine Monday on this final week of February as we talk about the efforts to stave off a massive wave of potentially industry-killing EVs. We also get back to the new car markup debate on a new Lexus, as well as a sweet move to ease connectivity frustrations. Show Notes with links: In a unified stance against major disruption , a bipartisan group of lawmakers are advocating for Joe Biden to halt imports of low-cost Chinese autos from Mexico, fearing a catastrophic impact on the domestic auto industry. The Alliance for American Manufacturing is also turning up the pressure to block Chinese EVs and parts imports from Mexico to protect U.S. industry from "extinction-level" threats. Chinese vehicles, benefiting from strong government subsidies, could exploit a N.A. free trade agreements, potentially causing significant job losses in the U.S. which is why he group pressed U.S. Trade Rep Katherine Tai to increase the 27.5% tariff on Chinese vehicles China's BYD is the largest target as they are setting up an EV factory in Mexico, as U.S. lawmakers call for increased tariffs and strategic restrictions on imports. "The commercial backdoor left open to Chinese auto imports should be shut before it causes mass plant closures and job losses in the United States," warns the Alliance for American Manufacturing. A Dallas-area Lexus dealership may be jumping the gun with a mark up on the not-yet-released 2024 GX model, a move that's getting some attention and reviving the conversation around new vehicle markups. Before its arrival, an unknown Lexus dealership (or maybe just rogue employee) in Dallas posted a marked up 2024 GX at $27,250 over MSRP on Craigslist The 2024 GX 550 Luxury's starting price is $77,250; with the markup, it's listed at $105,000. The listing's ambiguity is causing speculation on whether a rogue salesperson or sales manager is to blame. With the high demand for this new addition to the Lexus lineup, this isn’t likely to be the last markup attempt we see The writer of the Jalopnik article Lawrence Hodge urges "Don’t indulge this. Don’t even pay a $1 over sticker. Wait, or don’t buy one at all," advises against encouraging dealer markups. In a creative twist, Krispy Kreme turned a nationwide cell phone outage into an opportunity to earn some tasty goodwill as they offered free doughnuts as a "sweet relief" to disconnect
Sat, February 24, 2024
How To Manage A Chaotic Saturday at the Dealership, According To Disney
Shoot us a Text. Kyle Mountsier is home from vacation, after spending a week at Disney with his family. And of course, he has some takeaways. He saw employees stay cool and collected. They smiled. They were prepared and ready for their guests, even when there were a lot of them. You might say they loved people more than rides. Go out and love some people more than cars! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 23, 2024
VinFasts Optimism, 40k Toyota Incentive, Dealer-Governor in WV?
Shoot us a Text. It’s Friiiiday and we have guest host Daniel Govaer to talk about the optimism of VinFast despite Q4 losses, 40k on the hood of one Toyota, and the potential to have a Dealer - Governor in West Virginia. Show Notes with links: New EV OEM VinFast's is confident in its path to profitability despite a widening Q4 loss, the Vietnamese EV maker eyes an ambitious sales horizon for 2024. Q4 losses deepened by 3.4% quarter-on-quarter, totaling $650.1 million, signaling a 1.3% increase from Q4 2022. Aiming to triple its sales to 100,000 units in 2024, despite missing its 50,000 target in 2023 due to slow EV adoption and pricing pressures. Expanding globally, including plans for new factories in North Carolina, India, and Indonesia, targeting major markets with a novel battery leasing scheme. "This year, we expand globally... So we are confident that we are going to achieve the guidance," states chairwoman Le Thi Thu Thuy. Toyota is slashing $40,000 off the hydrogen powered Mirai's MSRP as Shell Hydrogen announces its departure from operating hydrogen fueling stations in California, complicating the refueling process. The offer, exclusive to California, includes $15,000 in complimentary fuel and zero percent financing for qualifying buyers of the 2023 Mirai Limited models. Inventory is showing challenges with just about two dozen Limited models remaining, highlighting the niche appeal amid infrastructure constraints. Toyota is also including a $15,000 hydrogen fuel card with the Mirai, amid growing concerns over the dwindling number of available hydrogen refueling stations in California. There is also a 0% financing incentive that could be valued at over $6500…making the total incentives on the deal worth around $60k Sticker price is $67,095 Is it possible that the next Governor of West Virginia could be a Dealer ? Chris Miller, a Southwest Virginia auto dealer, is stepping into the political ring with a vision to overhaul the state's economy." Chris Miller, owning multiple dealerships across states, is running for Governor of West Virginia, aiming to leverage his business acumen for state governance. Miller's personal journey from battling addiction to becoming a successful business owner and now a gubernatorial candidate highlights his resilience and dedication to change. "At the end of t
Thu, February 22, 2024
UAW Cracks Piggy Bank, Rivian Layoffs, Delta Deploys Porsche 911s
Shoot us a Text. It’s Thursday and we have guest host Steve Greenfield again to talk about the UAW’s stated intention to invest big in organizing new plants. We also cover Rivian’s sales predictions and layoffs as well as the most exciting layover transfers ever. Show Notes with links: The UAW is setting aside $40 million towards organizing efforts in the next two years for auto and battery workers in the U.S. without union representation, signaling a significant push towards enhancing labor rights in the burgeoning EV ecosystem. This initiative comes as a response to growing organizing activities among auto and battery workers currently outside of union membership. With the electric-vehicle battery sector expected to add tens of thousands of jobs, the UAW is acting to secure workers' interests sooner than later "Through a massive new organizing effort, workers are fighting to maintain and raise the standard in the emerging battery industry," the UAW states. Rivian Automotive has announced a workforce reduction of 10% and predicting flat production levels at 57,000 for 2024, amidst a net loss reduction in Q4. The company is experiencing a net loss improvement, reporting $1.52 billion in Q4, down from $1.72 billion the previous year, despite a full-year loss of $5.43 billion. CEO RJ Scaringe cited consumer reluctance due to high interest rates causing an impact on demand as he announced production shutdowns for efficiency improvements. "Our business is not immune to existing economic and geopolitical uncertainties," Scaringe acknowledges, pointing to the high interest rates affecting demand. Despite these challenges, Rivian is optimistic about its future, particularly with the upcoming R2 platform aimed at the midsize SUV market, promising a price below $50,000. Rivian employees were left in suspense last night when they were told about the 10% reduction and informed they'd have to wait until the next morning to learn if their roles were affected by layoffs, creating a night of uncertainty Delta is stepping up its game at LAX by partnering with Porsche to shuttle passengers with short layovers at LAX using a 911 GT3 RS The service is part of Delta's continuous efforts to maintain its status as North America's most punctual airline, utilizing its fleet of Porsche vehicles for the benefit of elite passengers. Aimed more at marketing than speed due to regulatory limitations, the presence of a bright-r
Wed, February 21, 2024
Guest Host Todd Caputo, Ford Slashes Mach-E Prices, Standalone Used
Shoot us a Text. Today we welcome special guest host Todd Caputo to talk about the resilience of physical standalone used car models as well as some big price adjustments from Ford on their Mach E Show Notes with links: It's appropriate that our Charlotte, NC based guest Todd is our guest host today to celebrate on this day in 1948, NASCAR was founded by William "Bill" France Sr. Bill was a race-loving mechanic who moved to Daytona Beach, and saw much corruption amongst disjointed race promoters who would run off with prize money so he initiated NASCAR to standardize racing rules and ensure fair competition, serving as its first president and significantly influencing its growth to become a major American spectator sport and a multi-billion-dollar industry. Ford Motor Co. has significantly reduced the prices of the 2023 Mustang Mach-E, slashing costs by $3,100 to $8,100 across different models to enhance its competitiveness against Tesla. The price reduction is coupled with attractive financing offers, including 0% financing for 72 months for qualified buyers and a $7,500 cash incentive on leased vehicles, aiming to clear the path for the 2024 model The Mustang Mach-E is second to the Tesla Model Y in US sales. Despite not qualifying for the $7,500 federal tax credit, Ford CEO Jim Farley emphasized the need for affordable electric vehicles in the competitive market, with Ford developing a smaller, more affordable electric vehicle. "We are adjusting pricing," said Ford spokesperson Marty Gunsberg, highlighting the company's strategy to adapt to market dynamics and prioritize customer value. Despite the turbulent automotive market, some standalone used-car stores like Sonic Automotive's EchoPark have navigated through volatility with strategic adjustments, such as reducing store footprints to improve inventory allocation and sales. The industry has seen a shift from ecommerce platforms like Vroom, Shift, Carlotz, and Carvana to physical used-car outlets, emphasizing the resilience and adaptability of these business models to market dynamics. Sonic Automotive and other major players, such as AutoNation and Penske, have integrated additional services like F&I and repair to create synergies with their used-car operations, enhancing customer value and operational efficiency. "Reducing our store footprint...allowed us to better allocate inventory across the platform," noted David Smith, Sonic's CEO, illustrating a strategic pivot towards a more focused and efficient operational model to weather the
Tue, February 20, 2024
A Little Less Electric, Triple Incentives, The End of Free Shipping
Shoot us a Text. We’re rolling into Tuesday as guest host Steve Greenfield joins Paul to discuss relaxing government requirements on EVs. We also dig a little more into the broader EV numbers, as well as the potential end of the free shipping era. Show Notes with links: It's looking like 2030 might not be as electric as the government once said, as the Biden administration plans to relax its ambitious EV transition goals. Here's why the pace is slowing down The EPA will reduce the speed of proposed yearly emissions requirements through 2030, making EVs less than 60% of total production as opposed to the initial higher target of 67% by 2032 Automakers, Dealers, and even the UAW argue that EV technology costs and infrastructure development need more time, prompting a reevaluation of the original aggressive targets. John Bozzella of the Alliance for Automotive Innovation emphasizes the importance of allowing the market, supply chains, and public charging infrastructure to develop to support the EV shift, proposing a 40-50% target is more realistic Current production sits at around 8% In his Automotive Ventures Weekly Intel Report, Steve Greenfiled added additional context to the EV market citing a Cox Automotive Report that indicated New EV incentives have tripled in many cases Even California EV sales dropped substantially in Q4...for the first time in a decade The era of free shipping and no-cost returns in online shopping is coming to an end, with retailers tightening policies to cut costs. Consumers accustomed to the convenience of home-trial shopping face new charges for returns and stricter policies, affecting even habitual returners. Retail giants like H&M, Zara, and Amazon are leading the charge, introducing fees for returns, setting shorter return deadlines, and eliminating some return options altogether. With retail margins becoming tighter, investors want to see actual profits instead of lofty promises. environmental impact of careless consumption. One customer mentioned in the article was banned from online shopping at Urban Outfitters after returning items once a month since high school.
Mon, February 19, 2024
IRS EV Tax Credit Rollercoaster, Deez Benz Prices, Recycling Run-Back
Shoot us a Text. It's President's Day and the Auto Industry is feeling patriotic as we discuss the rocky start for EV tax credit transfers, Mercedes-Benz's strategy navigating luxury and mainstream markets, and the harsh truths about plastic recycling. Dealerships are facing mixed results with the IRS portal for EV tax credit transfers: while some smoothly navigate the system, others have hit technical snags, challenging their ability to offer instant credits to buyers and putting Dealers in a risky position Some dealers successfully use the IRS Energy Credits Online portal, enabling immediate tax credit applications at sale, but others report frustrating glitches. After nearly two months, Andrew Tang's glitch was resolved, allowing his dealership to finally recover the $7,500 credit it fronted on nine Bolt sale Gary Pretzfeld, co-owner of AutoTrustUSA, encountered a "known error" that prevented offering instant tax credits,"The whole thing, it sucks and it's unfair," Gary Pretzfeld expressed his frustration over portal issues that initially hindered his dealership's ability to compete by offering instant EV tax credits Mercedes-Benz refutes claims of deprioritizing high-end vehicles for cheaper gas cars, emphasizing a strategic balance between ICE, EV, and PHEV models to cater to market demands and growth opportunities. The company allegedly told dealers at their NADA make meeting that 2024 will be the year when they focus on lower-priced cars to drive sales. According to a dealer who attended the meeting, an exec stated: "Last year was about profitability; this year is about sales growth." Mercedes plans to introduce 25 new products in 2024, focusing on both core and high-end segments, including the anticipated S63e, G-Class, and AMG GT models. Despite rumors, Mercedes maintains its "Economics of Desire" strategy, directing over 75% of R&D to lucrative segments, with a future aim for an all-electric lineup. "Our long-term strategy is to go all electric in the future where market conditions allow," a Mercedes-Benz spokesperson clarified, highlighting tactical flexibility in their vehicle portfolio. A recent report highlights the stark reality that almost no plastics can be effectively recycled, challenging decades of industry narratives and calling for accountability from the fossil fuel sector. Despite a recycling campaign by the in
Sat, February 17, 2024
A 2025 Corvette E-Ray Helped This Dealer Support Toys for Tots
Shoot us a Text. As is our Saturday tradition, writers Chris Reeves and Kristi Canada join the show to talk about the shinier things in the auto industry, the people! Today, we're highlighting the Ciocca family of dealerships again, who partnered with a local Corvette club to do a charity raffle benefiting the Atlantic-Cape Marine Corps Toys for Tots. The winner gets a customizable 2025 Corvette E-Ray. Have a story of dealerships making a difference in their community? Let us know by sending us an email at crew@asotu.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 16, 2024
ASOTU CON Speaker On Fallon, CARS Big Insights, Farley on Ford
Shoot us a Text. We’re screaming toward the end of another great week in auto as we talk about a great new insights report from our friends at CARS Commerce. We also talk about Jim Farley’s rather direct comments about Ford, as well as an ASOTU CON Speaker who was recently featured on the Jimmy Fallon Show. Our friends at CARS Commerce are leveraging their data to provide a new monthly Industry Insights Report that will pull out key industry and car-shopping data across their platforms. Here are some of the highlights: Shift to a buyer's market: The automotive industry is seeing a potential shift toward a buyer's market as of 2024, driven by a combination of lower prices, a 36% year-over-year increase in new car inventory and vehicles staying on dealer lots for longer periods — ultimately enhancing negotiation leverage for shoppers. New-car prices dipped again, but total vehicle cost is still elevated: As new-car inventory returns, prices are softening. However, Cars Commerce’s just-launched New Car Pricing Index (NCPI) reveals the total cost to purchase and finance a vehicle is still 32.7% above MSRP. Increased options for budget-conscious consumers: There's a notable uptick in the availability of new vehicles priced under $30K, with a 63% year-over-year increase, indicating a broadening of options within an accessible price range for budget-conscious buyers – however, the market is still below average, down 79% when compared to pre-pandemic Jan. 2019 levels. Used-car scarcity increasing: Despite a slight decrease in average prices, an 800,000-vehicle drop in availability exacerbates the scarcity of used cars, indicating increased volatility in the market this year and highlighting the need for monitoring lease returns to project future inventory. Growing EV inventory and market adjustments: The EV market is fluctuating, with a 136.7% increase in dealer inventory allowing more consumers to test-drive vehicles previously limited by supply issues, while the used-EV market is experiencing an uptick in demand bolstered by increased supply and lower prices. During the Wolfe Research Global Auto Conference in New York, Ford CEO Jim Farley announced a strategic shift towards developing smaller, profitable electric vehicles (EVs) amidst a changing market and a new dynamic with the UAW post-strike. "It's nonnegotiable that we're going to allocate capital to a new affordable electric vehicle ... and you have to make money in the first 12 months," he said Thursday, recounting the message he gave his team. "And I don't want a bullshit road map. I want, like, a real plan. And if you can't [execute] that plan,
Thu, February 15, 2024
BYD’s Strategic Move, Advanced EV Tax Credits, Returning Vision Pro
Shoot us a Text. It’s Thursday and we’re talking about Ford’s comments on BYD’s strategic move to North America. We also cover the IRS’ issuance of advanced tax credits as well as Apple fans returning their VisionPro headsets. China's electric vehicle giant, BYD, is reportedly making a strategic move by setting up a new EV factory in Mexico , aiming to turn it into an export hub for the U.S. market and worrying many in the industry. The company is conducting a feasibility study and negotiating with Mexican officials about the factory's location and other terms. This move is part of BYD's global expansion strategy, complementing its dominant presence in the Chinese market. Last month, Elon Musk said that Chinese automakers will "demolish" global rivals without trade barriers. A forthcoming report by the group Alliance for American Manufacturing says "The introduction of cheap Chinese autos… backed with the power and funding of the Chinese government… could end up being an extinction-level event for the U.S. auto sector." On Wednesday, Marin Gjaja, COO of Ford’s EV unit, Model e, spoke about the ‘ colossal strategic threat ’ of Chinese EVs: “They are ahead of us in this technology… We look at that and say, ‘That’s coming here eventually, so we’d better get fit now and better get going on EVs or we don’t have a future as a company.’” The U.S. government has dished out $135 million in advance EV tax rebates since the start of this year, marking a significant shift in consumer electric vehicle tax credit processing Prior to 2024, EV credits were claimed on tax returns the following year. From Jan. 1, these can now be transferred to dealers at the sale time, reducing purchase prices. The IRS reported over 25,000 sale time reports, with 78% involving advance payment requests, totaling around $135 million paid to dealers. New EVs account for 17,500 of the advance payment requests, with used vehicles making up 2,000. Over 11,000 U.S. auto dealers are now registered for the program. Just weeks after its launch, a notable number of users are returning their $3,500 Apple Vision Pro headsets, citing discomfort and limited applicability. Most complaints are primarily about comfort issues like headaches and motion sickness due to the headset's design. Parker Ortolani from The Verge reported a bu
Wed, February 14, 2024
GM To The Middle, World’s Largest Superchargers, Radio Flyer Innovates
Shoot us a Text. Welcome to Wednesday as we talk about what GM talked about in their private NADA meeting. We also spill the details on the world's largest Supercharger station, as well as a new retail experience from iconic Radio Flyer. Show Notes with links: During their private meeting at this years NADA Show, GM has signaled a strategic pivot back to plug-in hybrid-electric vehicles, sparking enthusiasm among dealers as part of a more measured approach into the all-electric future GM announced plans to reintroduce PHEVs in the U.S., aiming to bridge the gap between current internal combustion engine vehicles and future all-electric mandates, amidst concerns over aggressive EPA timelines As opposed to one similar meeting a few years back where Buick dealers stood up and left en masse, this year’s meeting struck a different tone as Dealers expressed a positive outlook, highlighting GM's global experience with hybrids and PHEVs as a strong foundation for reintroducing these vehicles in the U.S. market Earlier in the week at the JD Power Summit, GM President Mark Reuss said of hybrids, “PHEVs are still two powertrains on one car,” and added that they are expensive to make. On the plus side, he pointed out that “regulators treat PHEVs the same as EVs.” Dealer Donald Hicks told Ward’s Auto, "The market is going to tell us what it will buy. The government can tell us what we have to build, but the market will tell us what we can sell. It’s that simple. Nobody is bigger than the market". Tesla is planning the construction of the world's largest Supercharger station in California, contributing some fresh ideas into the future of EV infrastructure The new Supercharger station will feature over 160 stalls, becoming the largest of its kind globally, and will be located in Kern County, near the intersection of the 5 freeway and the 46 highway. Tesla is also incorporating a microgrid with batteries and solar canopies, aiming to cut peak demand costs and promote sustainable energy use within the Supercharger network Radio Flyer, the iconic brand known for its red wagons, has opened its first store in Chicago, featuring a unique race track for kids to test-drive products The new store in the Woodfield Mall includes an adult-sized wagon and a race track for product testing, aiming to reignite the joy of play for both children and adults. Despite concerns around safety and insurance, the store has been a hit, with featur
Tue, February 13, 2024
Ad Spend Well Spent, Decline In Reliability, Fisker’s Quality Issues
Shoot us a Text. We’re rolling into Tuesday talking about some impressive ad results for some automakers after the big game. We’re also talking about JD Power’s latest report showing a dip in quality as well as Fisker’s specific quality challenges. The numbers are in…after the auto industry’s Super Bowl commercial showing VW, Kia, Toyota and BMW ads for their latest EVs drove a notable surge in online interest, with VW's nostalgic journey capturing the most attention. VW's ad, celebrating 75 years in the U.S., topped search traffic increases on Cars.com, Autotrader, and Kelley Blue Book. The ad that tied the development of VW with the development of America earned the third highest engagement among all advertisers VW accounted for 69 percent of all search activity after the big game, followed by 15 percent for Kia, 10 percent for Toyota and 6 percent for BMW Search for the ID Buzz increased 13x on Kelley Blue Book Both Kia and VW made it into the top 10 list for all Super Bowl ads Brian Moody, executive editor at Autotrader and Kelley Blue Book said, "Volkswagen specifically has woven their vehicles into the tapestry of the American experience...They not only captured that sentiment, but used it to introduce VW and the ID Buzz to an entirely new generation of drivers." The latest J.D. Power study reveals a declining trend in vehicle dependability, as vehicles experience more problems in their first three years. The 2024 study reports an increase in vehicle problems to 190 PP100, with nearly two-thirds of brands showing more issues that previously Infotainment systems are the most problematic area, with connectivity and voice recognition leading in complaints Electric vehicles, including battery electric and plug-in hybrids, report more problems than gas-powered and traditional hybrids Lexus, Toyota, and Porsche lead in dependability rankings, with Toyota vehicles winning the most model-level awards "A deterioration of vehicle dependability is unusual," noted Frank Hanley, J.D. Power's Senior Director of Auto Benchmarking Fisker's all-electric SUV, the Ocean, has been plagued by reports of sudden power loss, braking issues, and other technical problems since its launch, challenging the company's quality assurances and customer service capabilities. Fisker Ocean owners have reported over 100 incidents of sudden power loss, with issues extending to braking problems, glitchy key fobs, and hoods flying open.
Mon, February 12, 2024
Used EV Pricing, Rivian’s Pricing Adjustments, A Waymo on Fire
Shoot us a Text. It’s Monday and now that the Superbowl is over, we can get back to the real game! Today we are talking about more shifting dynamics in both the new and used EV segments. We also talk about a rather fiery incident involving a Waymo vehicle in San Francisco. At the NADA Show we heard all types of conversations around EVs as the volatility of the entire segment is real. Let’s talk about the used market first. With prices heavily influenced by fluctuations in new EV pricing, the used market has seen a sharp drop of around 30%. Despite a small market share, used EVs are becoming more accessible. Franchise dealerships sold around 180,000 used EVs in 2023, less than 1% of the market. Price adjustments in new EVs and government incentives are expected to further drive down used EV prices as well as the addition of affordable new EVs later this year The federal tax credit, under the Inflation Reduction Act, is offering up to $4,000 for EVs at least two model years old and under $25,000. With Hertz recent decision to liquidate one third of its EV fleet, a flood of eligible Tesla’s have flooded the market. Now on to the new side: Rivian has reduced prices on its R1T pickup and R1S crossover base models by $3,100, aligning with federal tax incentives and introducing a new battery option to stimulate sales. The price adjustment reflects the broader challenge of slower EV market growth, with Rivian aiming to make its vehicles more accessible amidst competitive pricing pressures. Rivian's introduction of a "standard-plus" battery option offers an additional 45 miles of range at previous prices, highlighting the company's response to consumer demand for greater value and range. "Like every electric vehicle producer with a U.S. presence, Rivian has to reconcile past expectations with current market realities," notes Karl Braueran, Executive Analyst at iSeeCars. Apparently a crowd in San Francisco found a use for a Waymo, driverless EV as it was set ablaze by a crowd using fireworks in San Francisco's Chinatown during Lunar New Year celebrations. The incident involved some smashing windows, with the car eventually engulfed in flames as someone threw a firework into the stopped vehicle Waymo reported no injuries as the car was not carrying passengers at the time, and the company is collaborating with local authorities
Sat, February 10, 2024
Why Time Dealer of the Year Rita Case Is So Into Hats And Caring For Her Community
Shoot us a Text. It's the first Saturday after the 2024 NADA Show and we're catching up with writers Chris Reeves and Kristi Canada about post-NADA self care. A huge congrats from ASOTU to Rita Case on winning the Time Dealer of the Year Award! She truly exemplifies a "Love People More Than Cars" attitude in how she cares for her team and her community. Want to hear more stories of dealers making an impact? Get the ASOTU Push Back Email at asotu.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 09, 2024
Reacting to Super Bowl Commercials, Toyota’s Record, CEO Optimism
Shoot us a Text. It’s a fun Friday as Paul and Kyle react to Super Bowl car commercials. We also talk about Toyota’s record stock price, as well as a CEO survey reflecting a modest return to optimism. Show Notes with links: Toyota set a new benchmark in Japan yesterday, becoming the first company to exceed a market capitalization of ¥50 trillion ($354.65 billion), following a 76% surge in quarterly operating profit and investor confidence in Toyota's post-pandemic strategy and focus on next-gen vehicles. Toyota plans to sell a record 10.4 million vehicles in the current fiscal year and raised its profit outlook to ¥4.90 trillion ($34.76 billion), signaling strong future growth. Investors are betting the company will channel its bumper profits into a wave of next-generation hybrids and EVs when demand for such vehicles really takes off. Over the past 12 months, Toyota's stock has surged more than 70%, with a 24% increase since the start of 2024, reflecting strong investor confidence and market performance. For the first time since early 2022, CEOs in the United States have reported a positive outlook on the economy, indicating a shift in sentiment towards growth and recovery. The Conference Board's Measure of CEO Confidence rose to 53 in Q1 of 2024, reflecting optimism over pessimism for the first time in two years, driven by reduced inflation, a strong labor market, and potential interest rate cuts. More than one-third of CEOs now view the current economic conditions positively, with a significant portion expecting improvements within their industries over the next six months. 39% of CEOs foresee improvements in the next six months, a surge from 26% in the fourth quarter. Despite the optimism, CEOs remain cautious, citing the 2024 US presidential race, regulatory changes, and high interest rates as potential challenges. Super Bowl 58 is just two days away in Las Vegas as the SanFrancisco 49ers will square off against the Kansas City Chiefs and their mascott Taylor Swift. While there are only two states heavily vested in the outcome of the game, the country is collectively waiting to watch some great commercials. Detroit's Big 3 will be sitting this year out however, the auto industry will be in full forces as we can look for commercials from Toyota, VW, Kia, and BWW From YouTube Creator Pushing Pistons’ spot with Eli Manning, to Christopher Walken being impersonated, it’s a fun ride Let’s watch a f
Thu, February 08, 2024
Fords Profit Sandbag, Potential Tesla Layoffs, Dealers $2M Superbowl Bet
Shoot us a Text. It’s just a few days to the big game but the plays are already being called as Ford discusses its profits and strategies to keep them where they are. We also talk about potential layoffs at Tesla, as well as a $2M bet with customers from one Kansas Dealership. Ford is projecting an $11 billion adjusted operating profit for 2024, surpassing analyst expectations and showcasing resilience despite large EV losses. The company's "Pro" business, primarily sales to companies, drives profitability with expected gains while its EV division Ford e posed a $4.7 billion loss in 2023, with anticipated deeper losses, yet investments in EV technology will continue "The ultimate competition is going to be the affordable Tesla and the Chinese OEMs," says CEO Jim Farley, emphasizing the ongoing commitment to EVs despite financial challenges. Without EV sales, Ford's adjusted operating profit could be 50% higher, showcasing the significant financial impact of their commitment to electric vehicle technology despite current losses. Tesla has asked managers to make a "binary assessment" of their deputies' roles, signaling a round of layoffs through a focused evaluation of team members' criticality. Growth in headcount showed a significant slow down, with an increase of only 12,000 in 2023, down from 29,000 in 2022, suggesting a shift towards operational efficiency. Employee morale faced challenges, highlighted by delayed stock compensation and unsatisfactory annual pay increases, reflecting broader concerns over compensation practices. Amidst cost-cutting efforts to support vehicle price cuts, Tesla's approach to streamlining its workforce and adjusting compensation has raised concerns about job security and company culture. SIDE STORY: Tesla's sales in South Korea dropped to just one vehicle in January, highlighting significant market challenges including consumer inflation concerns and a critical shortage of fast chargers. Overall EV registrations in South Korea plummeted by 80%, with safety concerns about battery fires further dampening demand A Kansas City Chiefs' Super Bowl win could mean big wins for some Mitsubishi buyers as Family Mitsubishi in Wichita, Kansas, is offering a unique Super Bowl promotion, promising full refunds on vehicle purchases if the Chiefs win under specific conditions.<u
Wed, February 07, 2024
OEM Meeting Notes, Drivers Switch Brands, Southwest Crams
Shoot us a Text. Welcome to Wednesday as we give the inside scoop on OEM meetings at NADA. We also talk about EV drivers willing to jump brands for better connectivity as well as Southwest making seats thinner to pack in more passengers. NADA's Top 5 Make Meetings give us a peek into the Auto Industry's Roadmap as meetings revealed key strategies and challenges, from Subaru's production comeback to Ford's EV transition pains Subaru dealers celebrate a rebound with resolved production issues and ambitious sales targets, alongside electrification plans in partnership with Toyota. Subaru expect to sell 680k vehicles this year which will be its best year after its 700k unit sales in 2019 "2024 looks bright as we resolve past challenges and move forward with our electrification journey," shared a Subaru executive. Ford addresses dealer concerns, promising improvements in EV certification and dealer relationships, with CEO Jim Farley committing to direct feedback sessions CEO Jim Farley committing to direct feedback sessions. Farley stated, "We're committed to smoothing out the bumps in our EV transition together." Elena Ford, Ford's chief dealer engagement officer and great-great-granddaughter of founder Henry Ford, addressed falling dealer satisfaction scores. "I know you're not feeling great right now, and I'm here to fix it." Hyundai reports success with its innovative Amazon partnership for online car sales, emphasizing dealer involvement and a clear vision forward. Hyundai's CEO Jose Muñoz remarked, "Our partnership with Amazon is just the beginning of redefining car buying." Chevrolet prepares to attract new customers with its upcoming EV lineup, including the electric Equinox and Silverado, signaling a shift towards broader EV adoption. Nissan aims for a U.S. retail share of 6.1% with a focus on affordability and strategic incentives, riding on the success of its most accessible models like Sentra and Kicks. A McKinsey survey reveals a significant shift among EV customers, with nearly 60% willing to switch brands for better vehicle connectivity , challenging traditional brand loyalty. McKinsey's global survey indicates a strong preference for advanced connectivity features in EVs, with a significant portion of customers ready to change brands for better tech. In the U.S., 38% of all vehicle buyers, and over 55% in China, prioritize connectivity over brand Southwest Airlines is introducing new Recaro seats in 2025, designed to maximiz
Tue, February 06, 2024
Recall Rodeo, Polestar Pitched, Deepfake Millions
Shoot us a Text. The ASOTU Crew is back in the saddle after an inspiring week at NADA. Today we’re talking about the variety of recalls across multiple manufacturers. We’re also covering Hertz’s parting of ways with Polestar, as well as an impressive and sobering deepfake scam Recalls are everywhere in the news from tailgates that may pop open on the road to airbag anomalies and tiny-font safety warnings, as GM, Honda, and Tesla announce significant recalls affecting millions. GM announced recalls for 323,232 vehicles, including Chevrolet Silverado and GMC Sierra models, due to tailgates that could unexpectedly open, posing a road hazard. Honda is recalling over 750,000 vehicles in the U.S. for airbags that may deploy unintentionally, covering models like the Pilot, Accord, Civic, CR-V, and Passport. Tesla's largest recall to date affects about 2.19 million vehicles for warning lights with font sizes too small, risking crash due to unclear safety information. Over-the-air fixes are planned. GM will repair or replace the tailgate mechanisms on certain Chevrolet Silverado and GMC Sierra models to prevent them from unexpectedly opening. Tesla is issuing an over-the-air software update to adjust the font size of warning lights on the instrument panel for better visibility and compliance with safety standards. Amid a broader EV market downturn, Hertz is reevaluating its electric ambitions, pausing a significant acquisition of Polestar vehicles due to soaring repair costs and market uncertainties. Hertz is halting its plan to purchase 65,000 electric vehicles from Polestar, reflecting the changing dynamics of the EV market. Polestar, facing its own hurdles, adjusts to Hertz's decision amidst a pause in Volvo's financial support and missed delivery targets for 2023. In a sophisticated scam a finance professional from a multinational firm was duped into transferring $25 million through an elaborate scam, with the scammers using an impressive array of deepfake technology The scam involved a fake video call where criminals closely mimicked the appearance and voices of company staff, effectively lowering the employee's su
Sun, February 04, 2024
Live with CarDealershipGuy at the 2024 NADA Show
Shoot us a Text. We tracked down Yossi J Levi , the face behind the viral Car Dealership Guy brand. If you want to read more about where Car Dealership Guy came from, check out our deep dive. https://lnkd.in/gheXbUNR Saturday’s coverage of the 2024 National Automobile Dealers Association (NADA) Show is presented by Stream Companies Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 02, 2024
Friday Morning at the 2024 NADA Show
Shoot us a Text. We're kicking off the Expo Hall Opening Ceremony at the 2024 NADA Show! We are joined by Greg Uland , VP of Marketing for The Reynolds and Reynolds Company , Ed Roberts , and some other special guests. Friday's coverage of the 2024 National Automobile Dealers Association (NADA) Show is brought to you by The Reynolds and Reynolds Company . Stay tuned for more coverage throughout the day! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, February 01, 2024
NADA Show is Here, Fisker Picks Mills, Dealers Concerns Raised
Shoot us a Text. All the anticipation. All the preparation. We are finally here at NADA Show opening day. Team ASOTU will be rolling in full force. Join us at the NADA Live Stage at 3:15p for a presentation about the More Than Cars docuseries. Today we take a look at Fisker’s signing day with Damien Mills and concerns dealers may be raising as they head into NADA Show. Let’s GO! Show Notes with links: Dealers are entering 2024 with mixed expectations according to the Automotive News' 2024 Dealer Outlook Survey Key with key concerns including affordability, new-vehicle profit margins, and the impact of interest rates on business. The survey results show a split outlook: about one-third expect a downturn in overall performance, while nearly 40% predict an improvement or stability compared to 2023. Key concerns among dealers include higher interest rates (70%), recession fears (42%), and vehicle affordability issues (42%). Ben Keating of Keating Auto Group expresses cautious optimism but notes, "Even though the demand is there, that doesn't mean the ability is there," highlighting the affordability challenge. A significant portion of dealers, wary of economic disruptions, anticipate increased marketing expenses and lower profits per vehicle. EV startup Fisker Inc. has signed the 34 store group Mills Automotive Group as its first U.S. dealer and aims to expand its dealership network at the NADA Show in Las Vegas. Fisker partnered with North Carolina's Mills Automotive Group, planning to open three sales locations, with Fisker’s sole model, the Ocean crossover, will be shipped to Mills Group in February. Damian Mills, CEO of Mills Group, said his group is committing to integrate Fisker's vision from day one. "I'm absolutely excited for this partnership, and we want to thank Fisker for its confidence in our group," At the NADA Show, Fisker expects to sign additional dealers, shifting from direct sales to franchised dealers in the U.S. and Europe. "Our pivot to the dealer partnership strategy has been moving incredibly fast… I am looking forward to signing up more dealer partners and offering them a win-win-win from the relationship.” " stated Henrik Fisker, CEO of Fisker Inc. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our mos
Wed, January 31, 2024
GM Rethinks EV, Elon’s Pay Plan Drama, Is Shoppable TV Real
Shoot us a Text. It’s wheels up to NADA Wednesday! Today, we’re covering GM reintroducing PHEVs to its US lineup, how Elon’s $55B Tesla pay plan could be in danger and if Amazon Prime Video ads will bring about the shoppable TV. General Motors is rethinking its vehicle lineup , with CEO Mary Barra announcing plans to integrate plug-in hybrid electric vehicles (PHEVs) into select North American models. This move aims to balance federal fuel economy regulations and EV commitments. The shift represents a pivot from GM's previous focus on fully electric vehicles and is a response to stricter federal fuel economy and emissions standards, balancing consumer demand and regulatory compliance. GM has used plug-in hybrid technology in models overseas, but the only hybrid model available in the US is the traditional hybrid Chevrolet Corvette In the 2010’s, GM pioneered PHEV technology with the Chevy Volt, but discontinued the car in 2019. Elon Musk's unprecedented $55.8 billion (you heard that right) pay package from Tesla, once a symbol of his extreme goals and abilities is now facing a major legal setback . A Delaware judge is questioning the compensation's approval process, pointing to Musk's intricate connections with Tesla's board. Delaware Court's ruling challenges Tesla's board on Musk's pay deal, scrutinized for "extensive ties" with directors, potentially reshaping executive compensation norms. The case, brought by shareholder Richard Tornetta, argued that Musk controlled the approval process and misled investors, leading to a unique trial in late 2022. "Musk was the paradigmatic ‘Superstar CEO,'" Chancellor McCormick wrote, highlighting his dominant role in the compensation approval process and his influence over the board With this package in limbo, he may only be the third richest person in the world with a mere $151B to his name. Is Shoppable TV about to become the norm ? Yesterday we talked about Amazon Prime’s move to introduce in-stream and many are asking if this will be a watershed moment in, blending e-commerce seamlessly with streaming content. Last year Walmart and NBCUniversal pioneered shoppable ads on Peacock, integrating AI technology during "Below Deck Mediterranean" episodes for a seamless while Roku leveraged a partnership with Shopify, allowing viewers to directly purchase from Shopify merchants through Roku Action Ads. Interactive ads, like
Tue, January 30, 2024
GM and Toyota Smiling, 99 Year Partnership, Gen Z Burrito Builders
Shoot us a Text. Things are looking up this Tuesday as GM and Toyota are doing the Q4 reporting dance. We also talk about a VERY long standing partnership that is going electric, as well as an attentive hiring strategy from a company that has a delicious burrito strategy. It’s good news from both GM and Toyota as GM's financial resilience shines despite the UAW strike and setbacks in its Cruise autonomous vehicle division, while Toyota surges to record sales and production, leaving the chip crisis firmly in the rearview GM's net income rose 5.2% to $2.1 billion in Q4, exceeding full-year forecasts, but faced a drop in adjusted pretax earnings and profit margin due to the UAW strike and increased spending on Cruise. Toyota, reported a year of record highs in sales and production, with a 7.2% increase to 11.23 million vehicles globally, buoyed by strong demand in North America and Europe. EVs played a pivotal role for Toyota, with sales of hybrids, plug-ins, and EVs soaring 35% to 3.7 million units GM CEO Mary Barra remains optimistic, stating, "I believe GM is well positioned for a year of strong financial performance that will build on everything we accomplished — and learned — in 2023." GM has put profitable EVs at the top of their list for 2024 Ford Pro is doing it’s part to move the automaker closer to an electric future as they announced a deal to sell over 1,000 EVs to long time partner ( almost 100 years! ), Ecolab, marking a significant step in Ecolab's commitment toward a fully electric fleet in California The order includes a combination of Mustang Mach-Es and F-150 Lightnings The move is part of Ecolab's broader goal to electrify its North American fleet by 2030 and achieve net-zero emissions globally by 2050 Ecolab's CEO, Christophe Beck, highlighted the dual benefits of the switch to EVs: enhanced productivity and reduced operational costs, estimating a saving of $1,400 per vehicle annually on fuel. Ford Pro's strategy to provide comprehensive fleet solutions, including charging and vehicle management software, aims to generate over $1 billion in revenue by 2030. Heading into its busiest season (March-May) Chipotle is setting its sights on Gen Z (who make up 73% of its current wo
Mon, January 29, 2024
Auto-less Super Bowl Teams, Ad Takeover, Consumer Optimism
Shoot us a Text. Welcome to a big week for the Auto Industry as we head into the NADA Show. But first we’re talking about the new Super Bowl outlook for the industry, a new ad platform on the market, as well as a growing, positive consumer sentiment about the economy. Now that Automotive’s team, the Detroit Lions, were eliminated from SuperBowl contention last night by the San Francisco 49ers, it looks like the industry will be back to talking about the manufacturers who will be running commercials during the big game in two weeks. Toyota has done an about face on their initial decision to skip the big game and is now set to make a big splash at Super Bowl LVIII with a national TV advertisement and engaging experiential activities, the company views its decision to participate in the Super Bowl as a perfect opportunity for a high-impact creative execution as the timing coincides with the launch of the 2024 Toyota Tacoma BMW, Volkswagen, and Kia are already building hype around their big game content Amazon is shaking up the streaming world by introducing ads to Prime Video , a move expected to add over $5B to its existing $38 billion ads business. Starting today, Prime Video viewers will encounter instream ads placing Amazon in direct competition with traditional linear-TV giants and streaming services. Amazon is leveraging its massive amount of consumer data as 70% of American households have an account, making it a highly attractive platform for advertisers targeting the fragmented streaming audience. Despite some pushback, Amazon's proposed ad rates are competitive with streaming rivals, positioning it strongly in the market, targeting $30-35 CPM Jon Morgenstern, the executive vice president and head of investment at the ad holding company VaynerX, said he’d like to see the cost come down to the high teens, but added if the business results can be tracked back, it doesn’t matter what the cost is. If you’d prefer to skip the ads, it will cost you an additional $3 per month Regardless of who your favorite NFL team is, Americans are feeling a surge of optimism about the economy. Rising stock prices, falling gas prices, and lower egg prices are responsible for this shift in sentiment, marking the
Sat, January 27, 2024
What To Expect At The 2024 NADA Show
Shoot us a Text. Writer Chris Reeves joins the show to talk about our plans at the 2024 NADA Show and what we're most excited about. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, January 26, 2024
Large Companies Losing, Less Lincoln Stores, Fisker Going Franchise
Shoot us a Text. We’ve got that Friday feeling as we take on the morning news in Retail Auto together. The big conversation this week has been around the closure and subsequent layoffs at online vehicle retailer Vroom, they aren’t the only company showing signs of change as a sweeping trend is reshaping the corporate landscape as several high-profile companies across industries from tech to media have announced significant layoffs in response to changing market dynamics and financial pressures. Microsoft has initiated layoffs affecting 1,900 jobs in its gaming divisions, including Xbox and Activision Blizzard, as part of a strategic realignment. The LA Times is cutting over 20% of its newsroom staff , totaling 115 editorial employees, in response to financial challenges. Business Insider is reducing its workforce by 8%, (about 50 employees, mirroring wider layoffs in the digital news industry Paramount Global announced job cuts and a reduction in international content spending as part of its cost-cutting measures. Other tech companies like Google, eBay, Discord, TikTok, and Twitch have also announced significant layoffs, reflecting a trend of restructuring within the tech industry. Lincoln plans to cut 100 more U.S. dealerships in 2024, following a reduction of 100 in 2023, aiming for a more compact and profitable network of around 400 stores. Dealership buyouts include incentives like increased Ford inventory and special plans for loyal customers, as part of Lincoln's strategy to enhance sales and dealership throughput. The focus is on creating brand-exclusive stores and reducing dual Lincoln-Ford showrooms, with an emphasis on improving client experience and competitive dealership performance. EV maker Fisker is undergoing a significant shift in sales strategy for its Ocean EV, moving from direct sales to embracing third-party retailers and will be at NADA to continue courting over 65 Dealers according to the company. The company recently hosted a number of Dealers at an open house event in California. As part of this strategic push, Heinrich Fisker himself will be attending the NADA show fo
Thu, January 25, 2024
Tesla’s Drudge, A Brand New Dealer, Lions Before Pickups
Shoot us a Text. It’s Thursday and there is a lot more than cars to talk about…but cars too. We break down Teslas earnings report as a key indicator of the EV market. We also welcome a next gen Kentucky Dealer, as well as a much deserved delay of game at one GM plant. Yesterday came with mixed news during Tesla’s earnings call as its stock price fell 7% on the news that the company missed earnings targets for the second quarter in a row, losing about $50B in market value.. CEO Elon Musk also confirmed the plans for launching a low-cost electric vehicle in late 2025, starting production in Texas and expanding to Mexico. Musk emphasizes profound changes in both vehicle design and manufacturing processes needed to produce the new entry-level vehicle potentially priced between $25,000-$30,000. Production will initially start in Texas for engineering proximity, with plans to expand to northern Mexico and another non-North American location. Musk said “We’ll basically be sleeping on the line.” "The problem for Tesla is any significant attempt to boost sales from here on will probably need to be achieved at the cost of further falls in operating margin, due to having to compete with BYD in China, as well as increased competition elsewhere," said Michael Hewson, chief market analyst at CMC Markets Following Tesla's announcement, over 10 brokerages increased their price targets, with four enhancing their overall outlook. The median target price is now set at $225, representing a nearly 9% rise from the last closing share price. Today we’re celebrating a member of the next generation of Dealers as Kate Faupel Grealish, who grew up in the automotive industry, takes a significant step by acquiring her own dealership, Kate Faupel Ford in Henderson, Kentucky. She’s the daughter of dealer Ron Faupel, transitions from her role at Henderson Chevrolet GMC to owning Kate Faupel Ford. She started working there at age 15. Most recently, she has been the GM of the store since 2021, now she has her own store. Grealish's journey reflects a blend of family tradition and personal ambition, highlighted in her statement to Evansville Living magazine: “It’s pretty cool. It’s a lot of pressure, I’m not going to lie. But it’s really neat, and I’m excited. General Motors is embracing the Detroit Lions' historic NFL playoff run by adjusting work schedules at its Flint Assembly plant, delaying the third shift at
Wed, January 24, 2024
Vroom Jobs, Black Book for EVs, Tesla and Apple Plans
Shoot us a Text. Welcome to Wednesday as we talk about welcoming our new Vroomates into the fold. We also cover a new BlackBook integration of EVs as well as Tesla’s plans for a low cost EV and Apples downgraded plans for its high cost EV. Check out our Dear Vroom Employees Post Show Notes with links: Black Book, a leading provider of vehicle valuations and analytics, introduces Battery Adjusted Values for EVs.The new valuation system incorporates battery condition adjustments, collaborating with Recurrent, a renowned EV analytics provider. Battery Adjusted Values apply an increase or decrease to VIN-specific valuations based on individual battery data, addressing the gap in evaluating used EVs with traditional metrics. Jared Kalfus, Black Book's president, emphasized the significance of this advancement: "While electric vehicles are still vehicles, a single component – the battery – has never played such a significant role in a used vehicle’s value." Initially available on Black Book’s Cherry mobile app, the system will expand across the Black Book portfolio, offering comprehensive access to all customers. Tesla has officially announced its plans to start production of a new mass-market EV , codenamed "Redwood," by mid-2025l The "Redwood" project aims for a compact crossover model, expanding Tesla's reach into more budget-friendly markets. Tesla's initiative challenges traditional gasoline-powered cars and inexpensive EVs, like those from China's BYD, which recently surpassed Tesla in global sales and are rumored to be coming to the US in the next 24 months. Production forecasts include 10,000 vehicles per week, beginning in June 2025, and a price point in the $25k range Musk's ambition reflects in his statement: "Both the design of the products and manufacturing techniques are head and shoulders above anything else that is present in the industry." Originally announced 10 years ago, Apple's long-awaited electric car project, Titan , has shifted gears (ironic pun intended), aiming for a more conventional electric car launch by 2028 Leadership shifts and strategic realignments, now focus the project on a more realistic electric car with basic driver-assistance features. Originally targeting fully autonomous vehicles, Apple recalibrated to a Level 2+ system, akin to Tesla’s Autopilot, req
Tue, January 23, 2024
Vroom Sputters, CX Study Shows Improvement, Tesla’s FSD v 12
Shoot us a Text. Here is our response to the announcement that Vroom was ceasing operations: Dear Vroom Employees Post It’s Tuesday and there is a lot to discuss as Vroom announced the halt of used vehicle sales just as Cox released a new study on the car buyer's journey. We also talk about Tesla’s latest full self driving version release that is based on neural nets, not human coders. In a not-so-surprise announcement, online used-vehicle retailer Vroom Inc. announced that it was ceasing e-commerce activities due to financial strains and a focus on liquidity preservation. The company which went public in 2020 made waves with its aggressive Super Bowl ads portraying auto dealers as torturing captors. The company had initially thrived during the pandemic with increased online vehicle shopping however started a consistent decline in profits that never stopped in the last two quarters reporting over $130M in losses Vroom plans to halt online used-vehicle sales, intending to liquidate its current inventory through wholesale channels and stop further vehicle acquisitions. Efforts to raise capital for ongoing operations and extend the vehicle floorplan facility were unsuccessful, leading to this strategic pivot. As part of its restructuring, Vroom will reduce its workforce by 800 employees, amounting to a 90% cut, while maintaining operations at its United Auto Credit Corp. and CarStory units which employ around 800 people. The 2023 Cox Automotive Car Buyer Journey Study has been released and highlights significant improvements in customer satisfaction for both new and used vehicle shopping, crediting shorter buying times as a key factor while drawing attention to a balanced approach of online and instore experiences. In 2023, satisfaction with car buying improved, with 79% of new-vehicle buyers highly satisfied, an all time high and notable rebound from declines in 2021 and 2022. New-car buyers spent around 11 hours and 45 minutes in their purchasing journey, a decrease from previous years, contributing to higher satisfaction While used car buyers spent over 14 hours, a one hour decrease. Notable areas of increased satisfaction include the test drive experience (82%) vehicle pick-up and delivery (79%), and sales team interaction (77%). The average household income of new-vehicle buyers was $115,000, with used-vehicle buyers averaging $96,000. Sticker shock eased a bit in 2023, with 49% of buyers reporting they payed more than expected vs 54% last year <u
Mon, January 22, 2024
Insurance Rises, F-150 Lightning Drops, Pentagon Goes Solar
Shoot us a Text. Welcome to a fresh week in retail auto as we talk about the reason for rising auto insurance rates. We also talk about Ford’s more balanced EV strategy shift, as well as the big solar project underway at the Pentagon. Show Notes with links: In 2023, the auto insurance industry faced a wave of soaring rates , with the 10 largest insurers in the U.S. implementing double-digit increases, shaking up the market.This trend is attributed to rising claim frequencies and severities, including more severe crashes, litigated claims, and losses from weather and theft. Farmers Insurance led the charge with a 17.6% average rate increase across 43 states, reflecting a broader trend among top U.S. auto insurers. Notably, American Family and USAA followed closely, hiking their rates by 17.5% and 16.9% respectively, while other major players like Nationwide and State Farm also crossed the 16% threshold. The duo of GEICO and Allstate, despite being among the biggest rate raisers in 2022, ended 2023 with comparatively lower increases. Nevada experienced the highest increase at 28.3%, while states like Hawaii, North Carolina, and Colorado saw more modest rises under 5%. Ford Motor Company announced an adjustment to its EV strategy, scaling back F-150 Lightning production due to decreasing demand, while simultaneously ramping up its focus on Bronco and Ranger models. On Friday, Ford announced a reduction in F-150 Lightning production, affecting 1,400 workers, with a shift from two to one at the Rouge Electric Vehicle Center from April. The company plans to reallocate 700 of these workers to its Michigan Assembly Plant, which is increasing production of the Bronco and Ranger models. Despite the shift, Ford sold over 24,100 F-150 Lightnings in 2023, marking a significant increase from the previous year. Ford's restructuring is part of a broader strategy to balance its vehicle lineup, including gas-powered, hybrid, and electric models for optimized financial returns. “We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability," said Ford CEO Jim Farley in a statement The U.S. Department of Defense is set to install rooftop solar panels and a heat-recovery heat pump system at the Pentagon, targeting a drastic cut in fossil fuel dependence. These installations are expected to cover over 95% of the space and h
Sat, January 20, 2024
They Gave Away 10 EVs to auto technician trainers!
Shoot us a Text. Today we share a special More Than Cars moment that we got to witness. While at Public Policy Day at the DC Auto Show, DARCARs, Toyota and the Automobile Dealer Education Institute gave away 10 EVs to automotive technician high school teachers. The keys were presented by former students who now work at Toyota stores in the DC area. We got the chance to talk with Jamie Darvish, COO of DARCARS, about this amazing event and initiative. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, January 19, 2024
Big FTC CARS Rule News, Jim Ganther Tells Us What It Means
Shoot us a Text. News of the FTC’s stay of the CARS Rule broke while we were in DC for the WANADA Public Policy Day. Fortunately, we had Jim Ganther, CEO of Mosaic Compliance Solutions, to help us break it all down. Show Notes with links: The FTC's CARS Rule, aimed at regulating auto dealership practices , hits a roadblock as the U.S. appeals court reviews challenges from major auto dealer associations. FTC postpones CARS Rule enforcement pending 5th U.S. Circuit Court of Appeals decision, following petitions from NADA and Texas Automobile Dealers Association. The Rule, initially set for July 30, targets dealership advertising and finance/insurance practices, but faced industry backlash for perceived operational impacts. FTC criticized the challenge as meritless, citing potential consumer harm and industry dishonesty due to delays, but acknowledges the current legal uncertainties. NADA supports legislative efforts to impede the Rule and commits to educating dealers about compliance, despite the postponement. "We’re very pleased with that result,” Paul Metrey, NADA's EVP of public policy, expressed. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, January 18, 2024
WANADA Public Policy Day, Guelcher on Chevy, EVs on ICE
Shoot us a Text. We are in DC for the WANADA Public Policy Day and can’t wait for the conversations ahead of us. Our good friend Andy Guelcher of Mohawk Chevrolet chats up what’s coming for Chevy and it seems it is questionable on how EVs handle ice. Show Notes with links: In an Auto News interview Andy Guelcher, Chairman of the Chevrolet National Dealer Council discusses the resurgence in vehicle supply, with the Trax subcompact crossover leading demand. along with Chevrolet's ambitious plans for 2024, including EV transitions. Dealers are experiencing improved days' supply, beneficial for consumers, following pandemic and microchip-related challenges. Chevrolet is planning major redesigns and launches, including the Traverse, Equinox, Tahoe, Suburban, and new electric models. Guelcher expressed Chevy Dealer optimism for 2024, citing strong market positions and the balance of EV and combustion engine models. "The cadence of products and the refreshes are coming, and they're going to come so fast [in 2024], it's going to be mind-blowing," said Guelcher. When asked about ongoing concerns about a potential shift toward DTC sales: “ Marissa West, 24 hours into her new job as the president of North America for GM, reached out to myself and a number of other dealers in a format of get-to-know calls, reiterating how important we are to the partnership. And I think that speaks volumes for Chevrolet and General Motors and [what] the next decade or more looks like.” In the chilling grip of extreme cold, electric vehicles (EVs) are sparking a debate: more resilient than gas cars, yet not without their icy challenges as ‘Tesla Graveyards’ are popping up in Chicago. In Norway, where 1 in 4 cars is electric, data shows EVs fail at a lower rate than gas vehicles in extreme cold. Viking, a road assistance service, responded to 34,000 calls in early 2024; only 13% involved EVs. However, in Chicago, a recent cold wave left several Tesla cars stranded at Supercharger stations, unable to charge in temperatures dropping to 2°F (-19°C). The issue in Chicago might stem from owners not preconditioning their Tesla batteries, essential for efficient charging in cold weather. Despite these incidents, EVs generally perform better in cold conditions compared to traditional gas cars, but the technology still has room for improvement. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Bac
Wed, January 17, 2024
Stellantis Shuffles Leadership, Hyundai Shuffles Wheels, Porsche Shuffles Letters
Shoot us a Text. It’s the middle of the week and we’re excited for another amazing day in the auto industry. Today we’re talking about how Stellantis replaced their North American president, Hyundai’s new steering rig and Porsche’s awkward typo. Stellantis announces a major shift in its North American operations, replacing COO Mark Stewart with Carlos Zarlenga , the current president of its Mexico unit. Zarlenga, with a decade of global automotive experience, including a role as president of General Motors South America, is set to take over on Feb. 1. Stewart's departure follows a challenging year for Stellantis in the U.S. market, marked by a 1.2 percent decline in sales and a costly labor agreement with the UAW. The change comes as Stellantis gears up to launch its first electric vehicles in North America, aiming to revitalize its brands like Dodge, Jeep, and Ram in the competitive EV space. Carlos Tavares, CEO of Stellantis, praised Zarlenga's leadership skills: "Carlos Zarlenga is the best leader... to drive the change in our business model towards electrification in the region." From the ASOTU Daily Pushback Email: Most great features have limitless applications; Hyundai's Ioniq 5 has a new steering feature that seems to have a very limited number of applications. The e-Corner System turns the wheels of the EV sideways, allowing it to spin in place, perform a semi-drift maneuver, parallel park, or, maybe most importantly, escape a tight parallel park situation. The Steer-by-Wire system means each of the vehicle's four wheels is independently controlled by electronic motors, which is pretty much restricted to EV-only use. Hyundai Mobis says it is adding more cameras, sensors, and projectors in cars with the feature for safety needs. They say the system is not designed for high-speed driving and has only been tested up to 50 MPH. The feature is expected to start rolling out in 2026. A Porsche Club of America member in Houston spotted a humorous typo in the Porsche 911's driver display, where "brake pads" are misspelled as "break pads." The error was discovered following a request for brake pad recommendations on a Texas PCA Facebook group, after the owner participated in a High Performance Driver Education course. The dashboard warning reads, "BRAKE WEAR: Brake pads worn....Change break pads...Driving permitted," ironically spelling 'brake' correctly in other instances. This minor gaffe on a h
Tue, January 16, 2024
Tesla’s Dive, Kia and Uber Drive, Run DMC Cookies
Shoot us a Text. Tuesday is already flying by as we talk about Tesla’s terrible start to 2024. We also review a developing partnership between Kia and Uber, as well as a new-school retail product from and old-school hip-hop artist. Show Notes with links: Tesla's market cap has plunged over $94 billion in early 2024, its worst start since going public, driven by factors like Hertz's EV strategy shift and price cuts in China. Rising labor costs and aggressive price cuts to stimulate demand are eroding Tesla's once robust profit margins and additional operational disruptions, such as rerouting shipments and suspending Berlin plant production, add to Tesla's woes. Despite outperforming in the S&P 500 last year, Tesla now faces investor skepticism over its valuation and future growth prospects. Meanwhile, CEO Elon Musk is looking to increase his voting control in Tesla to at least 25%, arguing he needs more influence to lead the company's AI and robotics ventures, nearly doubling his current stake. Musk expressed on social media that without this increased control, he would prefer developing products outside of Tesla, while still maintaining a balance of influence without absolute power. This comes after a video of the new version of the company’s Optimus humanoid robot was shared in which the robot displays the impressive dexterity needed to fold a shirt Kia and Uber are joining forces , with a Memorandum of Understanding that marks a collaboration for developing PBVs, aligning with Uber's 2040 zero-emission ambition and showcasing Kia's advanced mobility tech. The Kia Concept PV5, previewed at CES 2024,morphs from a micro-car to a full-sized van, all set to roll out in a three-phase launch starting 2025. This partnership aims to ease the shift to electric vehicles for Uber drivers, offering comprehensive packages that include EV options, insurance, and maintenance through Kia's Flex program. Expect high-tech touches like interactive infotainment, advanced safety features, and personalized riding environments, enhancing the experience for both drivers and passengers. Hip-hop legend Darryl “D.M.C.” McDaniels, from the iconic Run-DMC, launches a unique cookie brand , "Darryl Makes Cookies," blending sweet treats with a powerful social message. This venture aims to bring generation
Mon, January 15, 2024
Stellantis Ghosts Car Shows, More EVs Than ICE for BMW, Meet AX
Shoot us a Text. Welcome to another week of opportunity in Retail Auto as we talk about Dealer’s response to the lack of OEM support from Stellanis at car shows. We also talk about BMW’s tipping point for EVs, as well as a new acronym, AX. Show Notes with links: As Stellantis scales back its auto show participation, dealers in North Texas unite to showcase vehicles , as Dealers around Dallas are pooling resources to display vehicles at the North Texas Auto Show The absence of Stellantis corporate support means only current showroom models will be shown, excluding anticipated vehicles like the electric Ram 1500 REV. Charlie Gilchrist of Gilchrist Automotive, along with the North Texas Automobile Dealers group, is leading the effort to maintain brand presence. Stellantis' ongoing absence from major events like the SEMA Show, Los Angeles Auto Show, and CES, coupled with skipping the Super Bowl ad spot, indicates a long-term strategy to reallocate marketing funds. The company says they are focusing on efficiency amidst challenging market conditions, leading to reduced participation in major auto shows across the country Charlie Gilchris said: When dealers think it's that important, I think that should tell the OEMs how we feel about auto shows because we as dealers believe that we need to have them," Gilchrist said. "It's an efficient spend because we get a lot of customers looking and shopping and then they actually go buy. Studies have proven that they actually will buy vehicles, so I think it's important that we have all the OEMs there.” Sales Growth is Mostly Electric as Combustion Engine 'Tipping Point' Passes according to BMW's CFO as electric vehicles are now driving a majority of the company's sales growth, surpassing combustion engines. As environmental regulations and market pressures are pushing carmakers like BMW to expand their EV offerings as BMW aims to increase its all-electric sales to 33% by 2026 up from the 15% they hit in 2023 as they will be introducing six new models in its "Neue Klasse" EV-only line. CFO Walter Mertl says: "The current sales plateau for combustion cars will continue and then fall slightly," indicating a strategic shift towards EVs. A Retail Wire article is asking whether or not Associate Experience (AX): is the new norm for retail success as Retailers are recognizing it as being a crucial factor Retailers are i
Sat, January 13, 2024
Dealers Bolstering The Front Line of Society
Shoot us a Text. Happy Saturday! Today, Chris Reeves and Kristi Canada, the writers of the ASOTU Daily Email, are in the studio to chat about the human side of the business. Gettel Automotive Group in Florida is serious about supporting education , donating to auto tech programs and running their 11th annual backpack drive. Thanks to Gettel for sharing this story with us! If you have a positive story of how dealers are making an impact in your community, send us an email to crew@asotu.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, January 12, 2024
Tesla Blowout Sale, Toyoda Is Back On Stage, Walmart’s People First Tech
Shoot us a Text. It’s Friday, friends and today we’re talking about Hertz’s big move away from EVs. We also talk about Toyota’s move to keep the ICE alive, as well as Walmart’s new tech announcements are all-in on human helpfulness. Once a major proponent of EV adoption Hertz, is now selling a third of its EV fleet due to lower than expected demand, signaling a broader industry retreat from rapid EV expansion This marks a significant reversal from its 2021 commitment to purchase 100,000 Tesla EVs, a move that previously boosted both companies' stock values. The industry's cooling on EVs reflects consumer concerns over limited charging infrastructure, battery range, and high prices, leading to slowed sales growth. Despite early enthusiasm, including a deal for 65,000 cars from Polestar and 175,000 from GM, Hertz faces higher EV repair costs and depreciating fleet values, partly due to Tesla's price cuts. Hertz plans to offset the $245 million cost from selling 20,000 EVs by purchasing more internal combustion engine vehicles, aiming for better profitability and the company also lowered its financial outlook for the year, citing additional costs primarily associated with EVs. On their site you can see there are a number of Tesla Model 3 sedans priced around 18k, meaning that after the federal tax credit, you can get a used tesla from Hertz for as low as 14k Former CEO and current Chairman of Toyota, Akio Toyoda is back c hampioning the ongoing relevance of internal combustion engines, asserting their vital role in achieving carbon neutrality and preserving automotive tradition meanwhile confirming the company’s progress toward a lower cost, solid state EV battery with 750 miles of range and a 10 minute charge time. "Should we not all have enthusiasm for cars as we take on the challenge," Toyoda stated at the Tokyo Auto Salon where Toyota and Lexus showcased several high-performance vehicles. Toyoda, advocating for a balanced approach to carbon neutrality in the automotive sector while developing EVs emphasizing the importance of preserving jobs The company says we can expect to see some of these fast charging, longer range, lower cost batteries as early as 2027 Meanwhile at CES, Walmart CEO Doug McMillon showcased the company's "people-led, tech-powered" strategy, emphasizing new AI and AR technologies while underscoring the importance of human engagement in the d
Thu, January 11, 2024
Inventory Highs, VinFast Pickup, Commercial Moonshots
Shoot us a Text. It’s a power slide into Thursday as we’re celebrating the highest inventory levels in 3 years. Plus we talk about VinFast’s new pickup and how NASA is going back to the moon with private companies. Show Notes with links: The U.S. new-vehicle inventory witnessed a significant surge in December, hitting a three-year high, while EVs are seeing the long-predicted slowdown, as reported by Cox Automotive. New-vehicle inventory in the U.S. rose by over 200,000 in December, reaching more than 2.7 million units, a substantial increase from the previous year and the highest levels in 3 years. The recovery in inventory levels represents a 71-day supply, a marked improvement from 2021's component shortages. EV inventories increased more rapidly than internal combustion vehicles, ending the year at a 113 days' supply compared to 69 days for combustion models. A total of 317K EVs were sold in Q4 , compared with 313K in Q3, only a 1.3% increase. EVs constituted 7.6% of the U.S. market in 2023, up from 5.9% in 2022, with price remaining a significant hurdle; the average new EV cost is approximately $50,789. Cox Automotive predicts that EV growth may continue to slow, with a potential for the first quarter-over-quarter sales decline in over three years. EV manufacturer VinFast revealed a pickup concept at CES slated for a potential 2026 U.S. launch, alongside the VF 3 microcar, reinforcing its commitment to expanding its EV lineup in the American market. The VF Wild concept is a midsize pickup with a flexible bed that can be extended into the rear of the cab through a power-folding midgate and may be produced at VinFast's upcoming plant in North Carolina, highlighting the company's growing focus on the U.S. market. VinFast Chairwoman Le Thi Thu Thuy said the Wild is still only a concept and the design may change based on input from US dealers and others. VinFast also confirmed that the VF 3 microcar, a sub-$20,000 mini eSUV, will enter the market. Production of the VF 3 is expected to begin later this year. "We are providing a new companion for a generation of young drivers who value practicality alongside personality," said said Tran Mai Hoa, deputy CEO of sales and marketing for VinFast Global NASA is setting its sights on the moon with a series of Comm
Wed, January 10, 2024
Dealers Window Shopping, Honda’s Strong Showing, Snap Snubs Social
Shoot us a Text. Welcome to Wednesday as we talk about the positive Dealer outlook toward acquisitions. We also cover Honda and Sony’s strong showing at CES, as well as some direct jabs at social media platforms from Snap’s CEO. Despite profit concerns, over 75% of dealership group leaders express eagerness to expand their holdings, according to the Presidio Group’s Q3 Dealer survey. Presidio Group's survey reveals that nearly 79% of dealership leaders aim to acquire more stores in the next year, even as 11% consider selling with a majority foreseeing a dip in both profitability and dealership values, influenced by factors like higher interest rates and potential recession risks. Toyota, Lexus, and Porsche top the list of most desirable brands for store ownership, while expectations for domestic brands' values are less optimistic. Dealers prioritize enhancing their portfolio with preferred brands and building ROI as key motivators for acquiring new stores. Honda's CES showcase unveils the Saloon and Space-Hub electric concepts, marking a significant shift towards electrification with its new "Honda 0 Series." Honda's 0 Series, including the Saloon and Space-Hub, embraces a "Thin, Light, and Wise" design principle, representing a departure from traditional EV constraints. The Saloon features a sleek, sporty design with advanced steer-by-wire and motion control systems, while the Space-Hub offers a flexible, minivan-like space. Accompanying these concepts is a revamped "H" logo, symbolizing Honda's commitment to the evolving mobility landscape. The ‘o’ series will feature unique E-Axles and high-density batteries, focusing on efficient power delivery and reduced charging times. Honda didn’t stop there as it also released a new version of it’s Afeela BEV in its collaboration with Sony The updated Afeela prototype features traditional sideview mirrors, more substantial headlights, and a redesigned charging port and rear bumper. 241-hp electric motors on each axle, all-wheel drive performance, Boasting a 91.0 kWh lithium-ion battery, Afeela supports DC charging up to 150 kW and AC charging at 11 kW, with range details yet to be released. Virtual and Real Launch: Set to be included in Gran Turismo 7 this year for virtual driving, Afeela orders will open in 2025, with a starting price around $45,000 anticipated Evan Spiegel, Snap CEO, declares <a href='https://www.businessinsider.com/evan-sp
Tue, January 09, 2024
Latest CES Drops, Kia Goes Commercial, Falling Home Prices
Shoot us a Text. We’re ready for another day of petrol (or electric) powered fun as we talk about the latest auto related drops at CES as well as the falling price of homes in a majority of the top 50 cities in the US. Show Notes with links: Hyundai’s latest announcement at CES reveals a robust hydrogen strategy , signaling a growing industry momentum towards hydrogen as a key player in achieving carbon neutrality in transportation. Hyundai's ambitious plans cover hydrogen production, storage, and use in various vehicles, including cars, aircraft, and ships. This move is part of a wider trend among automakers, with Toyota, BMW, and GM also developing hydrogen fuel-cell technologies. Hyundai's initiative aligns with the U.S. government's $7 billion investment in building seven regional hydrogen hubs. The technology behind hydrogen's rise includes proton exchange membrane electrolyzers, exemplified by Hyundai's collaboration with Pajarito Powder. "The economics [of hydrogen] are on their way," said Hyundai Global COO Jose Muñoz, highlighting the viability and potential of hydrogen in the automotive industry. Hyundai announced their first fuel cell EV in 2013 Watch out GM, Kia is going commercial as they unveiled their new line of modular EVs under the 'Platform Beyond Vehicle' strategy at CES 2024, showcasing versatility and innovation. Kia's new range includes the PV5, PV7, and PV1, featuring adaptable designs for various commercial and personal uses. The PV5, launching globally in 2025, is central to Kia's vision, with plans for 15 EVs by 2027. This initiative includes software development for infotainment, fleet management, and charging, optimizing operational efficiency. Kia's PBVs, leveraging Hyundai's SDx strategy, promise a software-defined, continuously learning transportation system. "We're going beyond traditional automobile concepts to meet diverse customer needs," says Kia Corp. CEO Ho Sung Song, highlighting the transformative nature of these EVs. Zillow's latest forecast indicates a potential decline in home prices across 34 major U.S. cities in 2024, marking a significant shift in the housing market dynamics, especially in former pandemic home-buying hotspots. The forecast, based on Zillow's Home Value Index, suggests price drops in cities like San Jose and New Orleans as high mortgage rates and a lack of demand are contributing While Zillow predicts a nation
Mon, January 08, 2024
CES Prepares To Launch, Honda Dropping $14B, Millennials Become Their Parents
Shoot us a Text. This Monday has that ‘new car smell’ as we give a CES preview to start off. We also cover a ginormous investment being mulled by Honda, as well as a Millennial trend that will require more cars. As the Consumer Electronics Show readies to open its doors tomorrow in Las Vegas, there are several things the auto industry is keeping its eyes on . First, there is a glaring difference between auto industry participation from last year to this, as the big three and many other automakers have opted out. Hyundai will be turning its focus to revealing its Vertiport Vinfast, who has been making news as it launches its Dealer network will be revealing 2 vehicles which may be coming to the US; a 20k VF3 Microcar as well as a pickup the company is calling their “latest electric vehicle concept” which the company says will reach production Auto suppliers are in full force revealing many new products focusing on tech deployment in vehicles such as AI enabled cameras and sensors Automotive News Exec Editor Jamie Butters says there is something to learn from CES leveraging new advancements to draw consumers in as auto shows across the country struggle to attract OEMs and visitors BTW, you can pick up your CES badge right at the airport… Starting off with a relatively measured approach in the EV race, Honda is coming to life as they are considering a massive $14 billion investment in an EV and battery plant in Canada near its Alliston, Ontario factory., aiming to bolster its presence in North America The proposed plant, expected to start production in 2028, would be Honda's second EV facility in North America. Canada's attractive incentives for EV investments, including tax breaks and renewable resources, are drawing major players like Honda Recently Volkswagen and its battery company PowerCo are working on building a gigafactory in St. Thomas, Ontario, slated to start production in 2027. Honda's partnership with LG Energy Solution in Ohio and plans to convert existing plants to begin manufacturing its new e:architecture platform According to new data, Millennials, once the driving force behind urban revitalization, are increasingly being priced out of cities and relocating to suburbs, reshaping both urban and suburban landscapes in their search for affordable living. Millennials are moving to suburbs due to high costs i
Sat, January 06, 2024
A "Wheel-y" Cool Monkey Playground... Brought To You By Auto Dealers
Shoot us a Text. Welcome to the first Saturday of the year! We're kicking it off with writers Chris and Kristi who share the story of how Bean Auto Group donated tires and cardboard to the Miami Zoo to be used in animal enrichment programs. Do you have a story of dealers making a difference? Share it with us! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, January 05, 2024
Flying High and Falling Short: CES Hot Takes, VinFast and Megadeals, Cyber-flop
Shoot us a Text. It’s the first Friday of the new year and today we’re talking about Hyundai's bold showcase at CES 2024, VinFast's strategic dealership expansion across the U.S., and the surprising range test results of Tesla's Cybertruck. CES 2024 is gearing up to start next week, but this year with a reduced field of major automakers. Hyundai's Air Mobility Division, Supernal and Honda are trying to steal the show with their latest innovations, amidst some notable automotive absences and a shift in industry focus. Hyundai will be revealing its eVTOL concept when the show opens as well as its plans for a progressive port where these eVTOL vehicles will transport passengers to and from the convention center Honda plans to launch a new global electric-vehicle series, highlighting key EV technologies. The company aims to unveil 30 new EVs, including battery and fuel-cell models, by 2030. They will also be co-revealing the latest iteration of their Affela EV, their collaborative effort with Sony Gary Shapiro, CEO of the Consumer Technology Association, notes, "The elephant in the room is the Big Three will not be exhibiting on the floor," highlighting the significant absence of major automakers at this year's event. Driverless tech has taken a back seat after being heavily featured during the last two years of the show In a follow up to a story we’ve been following, Vietnamese EV maker Vinfast has quickly announced 4 locations in Smith Haven VinFast in St. James, N.Y.; Principle VinFast Grapevine near Dallas; Hiley VinFast of Fort Worth, Texas; and VinFast Wichita in Kansas. One of the more interesting developments is the announcement of the mega-deal acquisition of the Leith Group by the NJ based Holman group. Leith was announced just a week ago as the first member of the Vinfast Dealer network with the first store located nearby to their North Carolina Factory That deal includes the purchase of all 25 Leith stores and is set to close by the end of Q1 In a revealing independent test over a five hour livestream , Tesla's much-anticipated Cybertruck demonstrates a highway range significantly lower than its EPA estimate, raising questions about its practicality in certain conditions and its overall efficiency. YouTube channel Out of Spec Motoring captured every minute of the test from charging to 100% until they full depleted the battery requiring towing to the nearest charger to discover the total range was a disappointing 254 miles
Thu, January 04, 2024
GM’s Gold Medal, Fisker Ditches DTC, Costco’s Accountability
Shoot us a Text. It’s a great Thursday in Retail Auto as we dig into the top OEM’s of 2023. We also talk about Fisker's change of heart on the Dealership model as well as Costco’s willingness to embrace accountability. GM will be keeping its top spot in U.S. auto sales for 2023, marking the industry's best performance since the pandemic selling approximately 2.6 million vehicles, a 14.1% increase from 2022. They slightly outperformed Toyota which saw a only a 6.6% rise. The U.S. auto industry sold about 15.5 million units last year, with electrified vehicles making up nearly 17% of sales. Toyota's electrified vehicle sales, including hybrids and EVs, jumped 30.4% to represent almost a third of their overall sales volume Many other brands saw record numbers across the board including Tesla who vehicle increased deliveries by 38% YoY to 1.81 million while production grew 35% YoY to 1.85 million EV Startup Fisker has decided to ditch direct-to-consumer and jump on the dealership train in a significant strategy shift driven by high costs and logistical challenges. Fisker produced 10,142 Ocean SUVs in 2023 but delivered less than half, citing difficulties in logistics and lack of physical stores. The startup has two showrooms (LA and NY) but is unable to execute sales or test drives “Some people don’t want to drive three hours or fly to another state to see a vehicle,” he said. Fisker plans to launch more mainstream vehicles like the $30,000 PEAR and an electric pickup, Alaska, necessitating a more robust sales network. Other EV startups, including VinFast and Polestar, are also adopting dealership models, contrasting the online sales model popularized by Tesla. The company aims to sign up at least 50 U.S. dealers this year, recognizing the franchise-dealer model's efficiency in reducing inventory costs and reaching more customers. Costco's leadership is taking a self-critical stance on a recent vote leading to the unionization of a Virginia warehouse , seeing it as a wake-up call to their own management style, not a knock on their team. The unionization of a Costco warehouse in Norfolk with the Teamsters is seen by current and former CEOs Ron Vachris and Craig Jelinek as a managerial failure, not employee dissatisfaction. In a letter that was emailed to employees and p
Wed, January 03, 2024
Kain Joins NCM, VinFast Goes to NC, Calculating EV Battery Ranges
Shoot us a Text. Welcome to the first Wednesday of 2024 as we talk about a merger of the industry’s friendliest company with an educational powerhouse. We also talk about VinFast’s first Dealership as well as the magic behind EV range calculations. NCM® Associates has acquired Louisville-based Kain Automotive , combining decades of expertise, and committing to further expanding their training offerings. The merger enhances their collective prowess in internet sales, BDC operations, and digital marketing training. NCM famously started the first 20 Group in 1947 and has been partnering with Kain Automotive for the last 15 years. David Kain said about the merger, ““The opportunity for our company and team to become part of an organization that founded the principles of dealership collaboration and performance benchmarking is rare – and one worth taking. We have been fortunate to work with NCM for many years, and I have witnessed first-hand their commitment to our client's success. In this new structure of working together daily, we can further drive value to dealership leaders and managers.”” VinFast has opened its first franchised dealership in North Carolina, partnering with Leith Automotive Group. The store is located about 20 miles from the site of VinFast’s future US assembly plant, slated to begin production in 2025. The Vietnamese EV maker began selling online and through 13 company owned showrooms in California last year. Through October 2023, there have been 218 VinFast registrations, according to S&P Global. Leith has 37 franchises in the state, representing 24 brands. This is the first of an initial rollout of 125 VinFast franchises, with plans for hundreds by the end of 2024. Ever wondered how the EPA gets their official battery ranges ? Ars Technics did a detailed breakdown, and here’s a summary: Before testing, vehicles undergo at least a 1,000-mile aging process, simulating real-world driving patterns. Modern EV testing offers two options: a "single cycle" test repeating city and highway cycles until the battery is depleted, or a more comprehensive multi-cycle test. The multi-cycle is comprised of the Urban Dynamometer Driving Schedule (UDDS), a 7.45-mile drive at an average speed of 19.59 mph with stationary periods, while the Highway Fuel Economy Driving Schedule (HFEDS) tests higher speeds up to 59.9 mph over 765 seconds. The EPA's 3 other tests in the multi-cycle for electric vehicles
Tue, January 02, 2024
Predictions Galore, Chinese Anxiety, Cybertruck Crash
Shoot us a Text. We’re firing up the new year talking about the last 2 weeks of activity, grading predictions, Chinese EV Conversations, and the Cybertruck’s first accident. Steve Greenfield 2023 predictions: Reynolds & Reynolds Acquired. - Fail 2. Tekion Acquired by Salesforce.com. - Fail 3. Carvana Acquired by Amazon. - Fail 4. AutoTech Valuations Reset. - Pass 5. Dealership Valuations Drop. - Meh 6. Dealers Focus on Cost Reduction. - Meh 7. Artificial Intelligence (AI) Goes Mainstream. - Pass 8. Next Wave of AutoTech: Process Automation. - Meh 9. Consolidation of Mobility Companies. - Meh 10. Private Equity (PE) Acquires Public Companies. - Meh 11. 2023 - The Year of the EV. - Pass Overall Score: B As we have entered the new year we’re seeing predictions emerge from all of the savviest corners of the Retail Auto Industry from Steve Greenfield, to Jonathan Smoke and beyond. One of the topics that keeps popping up is the question of whether or not this is the year Chinese vehicles, specifically EVs, will disrupt the market Progress, environmental concerns, and national security are all discussion points as Western nations face a complex dilemma in balancing domestic EV supply chain protection with global competitiveness China continues to bolster its domestic EV market with significant subsidies, potentially widening the technology gap with Western manufacturers. Recent changes to U.S. EV tax credit rules, including the exclusion of Chinese battery components, challenge the eligibility of popular models like Tesla's Model 3 and Ford's Mustang Mach-E, limiting Chinese influence over the battery supply chain France and the EU are following suit, with France restricting subsidies for Chinese-made EVs and the EU considering tariff increases, highlighting a broader Western skepticism towards Chinese EVs. The Biden is also considering increasing tariffs on Chinese EV’s which is already at 27.5% In the first reported accident involving a Tesla Cybertruck and a Toyota Corolla, only minor injuries were recorded, providing a first look into the highly scrutinized vehicle's safety and design in real-world scenarios. A 2023 Tesla Cybertruck, involved in an accident with a 2009 Toyota Corolla in Palo Alto, California, resulted in minor injury to the Cybertruck driver, who declined medical attention. The accident, confirmed by the California Highway Patrol, occurred when the Corolla crossed into the Cybertruck's lane, highlighting the robustness
Fri, December 29, 2023
Top 10 Stories of 2023
Shoot us a Text. Today marks our final episode of 2023 and what better way to reflect on this year than to visit the top 10 stories by Automotive News. Show Notes with links: Automotive News releases their Top 10 Stories of the Year of the year including changes in inventory, regulations around EVs, and coverage on the UAW Strike For a look back on 2023 and insights into 2024, watch the 3rd Annual ASOTU Year End Extravaganza on YouTube at asotu.be Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, December 28, 2023
An Economist’s View Going into 2024
Shoot us a Text. We know you’re making the most out of the final few days of the year! Today we’re sharing an Economic Outlook panel from Year End Extravaganza featuring Jonathan Smoke, Dr. Alex Yurchenko, and David Spisak. Show Notes with links: For a look back on 2023 and insights into 2024, watch the 3rd Annual ASOTU Year End Extravaganza on YouTube at asotu.be Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, December 27, 2023
Recapping True Journalism and Future Forecasting
Shoot us a Text. With a few days left in the year, we’re excited to see you close out the year strong. Today we’re reacting to a Year End Extravaganza panel on Innovation and Forecasting featuring Jamie Butters, Steve Greenfield, and Daniel Govaer. Show Notes with links: For a look back on 2023 and insights into 2024, watch the 3rd Annual ASOTU Year End Extravaganza on YouTube at asotu.be Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, December 26, 2023
Dealers Share Year End Insights
Shoot us a Text. We hope you had a great Christmas! Whether you are taking a little more time off or back in the saddle we recap top insights from dealers across the country. Announcement Year End Extravaganza - Check it out at asotu.be Show Notes with links: We grab a seat for a replay segment from the ASOTU Year End Extravaganza featuring Mickey Anderson (CEO @ Baxter Auto in NE), Ed Roberts (COO @ Bozard Ford Lincoln in FL), Erikka Tiffani Wells (GM @ Walser Hyundai in MN), Fabiola Mathis (GM @ Mercedes-Benz of Lubbock in TX) and Michael Lee (Dealer Principal @ Seneca Ford in PA) For a look back on 2023 and insights into 2024, watch the 3rd Annual ASOTU Year End Extravaganza on YouTube at asotu.be Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Sat, December 23, 2023
This Dealer Made It A Season of Giving
Shoot us a Text. Writer Chris Reeves joins the show today to tell us about how Lexus of Serramonte did more than just the bare minimum, plus we reflect on how amazing the retail auto industry is and how great of a gift they are to all of us. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, December 22, 2023
IRS and Dealers, Dealer-Smuggler, ASOTU Christmas Gift
Shoot us a Text. It’s a special Friday as many get ready for the holiday weekend. Today we talk about a big influx of IRS registrations, a car-smuggling Dealer, and a very special Christmas gift to one of our most committed community members. Show Notes with links: Over 7,000 U.S. car dealers, about 40% of franchised car dealerships, have registered with the IRS to offer point-of-sale EV tax credits This enables those dealers to facilitate the transfer of federal tax credits for EV purchases, a key provision under the Inflation Reduction Act providing up to $7,500 for new EVs and $4,000 for used EVs, with certain conditions for consumer eligibility. Starting January 1, registered dealers can submit EV sales info to the IRS and receive credit transfers within 72 hours, simplifying the purchase process. "The Treasury Department has conducted extensive outreach to ensure dealers were aware of this provision in the Inflation Reduction Act and able to register," a Treasury official stated. Sign up your store at: https://www.irs.gov/credits-deductions/register-your-dealership-to-enable-credits-for-clean-vehicle-buyers A Japanese car dealer was caught attempting to smuggle a Lexus worth $69,029 to North Korean leader Kim Jong-un, violating international sanctions. The scheme involved misdeclaring the car's destination as Singapore, intending to reroute it to North Korea via Bangladesh but Japanese authorities intercepted the shipment, preventing the violation of trade laws and sanctions against North Korea. Kim Jong-un has a history of appearing in luxury foreign cars, suggesting ongoing smuggling operations despite international restrictions. In the 70s the North Korean government ordered 1,000 Volvos from Sweden, took delivery, and never paid.. The Swedish government is still trying to collect Kim Jong-un has made public appearances in a number of foreign luxury cars, including a Lexus LX and a Mercedes-Maybach GLS 600, Check out Year End Extravaganza at asotu.be Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Re
Thu, December 21, 2023
The Great Normalization, TomTom Is Back, Shopping Soundtracks
Shoot us a Text. We’re ready for the days to start getting longer as we’re coming in hot this Thursday. Join in as we discuss store profitability returning to a normal state, TomTom gets a foot in the door with future auto tech, and how retailers use music to keep you shopping longer this holiday season. Show Notes with links: The first of a new quarterly report from a partnership between buy/sell firm The Presidio Group and NCM that reviews the data of 4400 franchised dealerships, reveals some stark changes in dealership profitability being dubbed “The Great Normalization” The data reveals a significant 19.5% drop in average dealership pretax profits through Q3 of 2023. A steep decline in gross profit per new vehicle, at 26% Dealership profitability is returning to more traditional patterns following unusually high profits during the COVID-19 pandemic, notes Presidio President George Karolis. George Karolis commented, “I think it gives a really good barometer and a different perspective to folks interested in following the industry.” NADA stopped releasing this data in 2021 its average dealership financial profile data, and this is the first time it has been available since Also notable, F&I income is down 8.1% to $1,587 / per unit You can get the report by going to the company’s site or clicking this link in the show notes GPS company TomTom is collaborating with Microsoft to introduce a sophisticated AI-powered conversational assistant in automobiles, enhancing voice interactions for navigation and vehicle control. The assistant is built on OpenAI's large language models and Microsoft's Azure Cosmos DB and Cognitive Services, promising high capabilities. This technology will be integrated into TomTom's Digital Cockpit and various automobile manufacturers' interfaces, with the auto companies maintaining their brand identity. TomTom has not yet disclosed specific partnerships with vehicle manufacturers, but the technology's versatility suggests widespread adoption potential As the holiday shopping season is reaching its peak, you probably have noticed the increase in music being played in retail stores. This isn’t new, but there is a lot to learn about how the strategic deployment of music in the shopping experience influences purchasing <li
Wed, December 20, 2023
Bringing Back Buttons, Buick Buyouts, Cybertruck Jr
Shoot us a Text. We’re warming up Wednesday as we talk about VW’s move to bring back physical buttons. We also talk about Buick’s buyout offers to Dealers nationwide, as well as a tiny little Cybertruck that you won’t get in time for Christmas. Show Notes with links: Volkswagen is heeding customer feedback by reintroducing physical buttons in its vehicles, moving away from a solely touchscreen-based interface, as seen in the new ID.2all EV. Interior designer Darius Watola cites European customer feedback as a key influence for this change. Volkswagen CEO Thomas Schäfer acknowledges the previous touchscreen design harmed customer loyalty. ID.2all's new interior features backlit physical buttons and a rotary dial for screen control, balancing with touchscreen infotainment. Volkswagen also plans to phase out hard plastics, leather, chrome, and glue for sustainability, without significantly raising costs. Nearly half of Buick's U.S. dealerships have chosen a buyout over investing in EV infrastructure, marking a significant shift in the brand's retail strategy Buick offered voluntary buyouts to dealers reluctant to spend on EV tooling, equipment, and training, leading to a 47% reduction in its U.S. dealership count. The brand, aiming for an all-electric lineup by the decade's end, now operates with around 1,000 dealerships, down from 1,958 at the year's start. Cadillac made a similar commitment to be all electric by 2030 and offered buyouts with a third of their dealers accepting one. Despite the reduced dealership network, Buick's U.S. sales increased by 58% year over year, with significant gains in their Encore GX and Envision models. Dealers who remain with Buick face an average investment of $300,000 to $400,000 for EV readiness, similar to Cadillac's approach in its own transition to electric. Duncan Aldred, Vice President of global Buick-GMC, states, "The network, where we are now, is a good size...with dealers who are focused on the business." According to the company, Americans are only an average of 25 miles from the closest Buick location The Cybertruck for Kids , a new electric ride-on toy inspired by the iconic Cybertruck design, is now available, featuring a 12 mile range and adjustable seats. The kicker…production is still an issue as they are already out of stock! The Cybertruck for Kids, priced at $1,500, is an all-electric, four-wheel
Tue, December 19, 2023
GPT Sell Car for $1, Pole to Pole EV,Factory Workers Pushing
Shoot us a Text. We’re busy putting up our Christmas tree as we’re talking about the end of year push by the UAW and Tesla. We also talk about the first EV ever to go from the North to South Pole, as well as a ChatBot giving cars away on a Dealer site. Manufacturing workers are still the talk of the town as UAW President Shawn Fain visits the VW plant in Chattanooga to deliver a message as Tesla voluntarily raises wages by 10% Fain, accompanied by 150 VW workers and community supporters, sought to hand-deliver a letter signed by a reported 1,000 demanding an end to "union-busting and intimidation" at VW's U.S. plant. Volkswagen management allegedly refused the letter, while a company spokesperson claims it was accepted. Meanwhile Tesla has announced a pay raise of approximately 10% for hourly workers at its Nevada factory, increasing wages to $22-$34.50 per hour and adding $2 to $8.30 per hour, while also streamlining worker levels for more uniform compensation UAW's nationwide push to organize nonunion auto workers includes a focus on Tesla, with CEO Elon Musk expressing disagreement with unions. The pay raise aligns with Tesla's response to increasing unionization efforts and industry wage trends. In an electrifying journey, a Nissan Ariya, driven by Chris and Julie Ramsey , made history by completing the first-ever all-electric drive from the North to the South Pole, showcasing the durability and adaptability of EVs. The Scottish couple embarked on this monumental trip in a modified Nissan Ariya, covering 17,000 miles over nine months, starting from the magnetic North Pole. Modifications to the Ariya included 39-inch tires and minor adjustments to the powertrain and suspension, with the vehicle nicknamed “Sonrisa.” The Ramseys utilized various energy sources for charging, including solar panels and generators, demonstrating the Ariya's flexibility in remote areas. You can check out their entire journey here: https://poletopoleev.com/expedition-live/ Our friends over at Fullpath were the source of an internet sensation yesterday as their chatbot powered by ChatGPT was discovered by Reddit and X. Pranksters tricked the dealership's ChatGPT-powered chatbot into performing tasks like writing Python scripts and agreeing to sell c
Mon, December 18, 2023
Big Sales, Big Funding, Big Ideas
Shoot us a Text. It’s officially Christmas Week and we’re ramping up the holiday spirit as we talk about some of the the ways that big ideas have made their way to the top of the charts. This includes a major acquisition, a feature on our friends at Automotive Ventures, and top rated chef serving dealership customers as the VIPs. Show Notes with links: After announcing the landmark deal back in September, Asbury Automotive Group has completed its acquisition of Jim Koons Automotive Companies, the 9th largest privately held group in the country including 20 dealerships, 29 franchises, six collision centers and a high volume Toyota dealerships for $1.2B Asbury president and CEO David Hult said in a news release. “Jim Koons’ passion for the car business, as well as his enthusiastic leadership of his group, is evident at every level of the Koons organization.” Jim Koons bought the group from his brother John about 50 years ago. John Koons got a job as a car salesman in 1939 As that same entrepreneurial spirit carries forward, more and more Dealers are being brought together to invest their own money in the future of the industry through start-up tech innovation. Automotive Ventures and FM Capital are attracting millions of dollars of Dealer investment into mobility tech across various industries Both firms have a history of successful investments, with FM Capital managing $300 million across funds and Automotive Ventures focusing on seed-stage and dealership technology investments. The firms see opportunity in the current market, where startup valuations have normalized following a period of inflated worth. "This could be one of the most profitable periods for [venture capital]," says Chase Fraser of FM Capital, highlighting the potential in current valuations. Sarasota Ford is now offering both Michelin tires and a Michelin-starred dining experience as they recently launched Le Mans Kitchen, exclusively for its customers. The initiative by Matt Buchanan of Buchanan Automotive Group aims to enhance dealership loyalty. The dealership already includes a movie theater and relaxation area. The 38 seat restaurant replaced the dealership’s cafe following a 9 month renovation project Executive chef Jose Martinez owns Maison Blanche previously had an award-winning restaurant in Paris, and owns a highly rated restaurant on Longboat Key</l
Sat, December 16, 2023
The 12 Moms of Christmas
Shoot us a Text. Writers Chris Reeves and Kristi Canada join the show to tell about how 6 dealerships in the heart of Minnesota came together to donate 12 cars loaded with presents and essentials to single moms in their community. If you have a story of how a dealer is making a difference in their community, we'd love to feature it! Share it at asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, December 15, 2023
GM’s NewYear’s Layoff, Carvana Touts Same-Day, UPS Paycheck Share
Shoot us a Text. It’s Friday and we’re ready to toe the line with Retail Auto as we talk about GM layoffs, Carvana’s expansion of its same-day services, and one UPS driver who shares his paycheck and sparks some second thoughts from commenters. General Motors has announced a temporary halt in Chevy Bolt EV production, leading to layoffs of 1,314 workers at two Michigan plants. GM has ceased production of the Chevy Bolt EV and EUV, resulting in 945 job cuts at the Lake Orion assembly plant. The plant is set for a transformation to produce future EV models. An additional 369 jobs will be lost at the Lansing Grand River Assembly plant with the end of Chevy Camaro Coupe production. GM plans a significant shift to its Ultium EV platform, with investments and retooling of the plant leading to the new Chevy Bolt EV reappearing on this new platform in 2025. In a notice to the state, GM noted that the reason they are announcing the layoffs so late were due to the slow ratification process of the UAW contract. Affected workers, particularly at the Orion plant, are being offered alternative opportunities in Michigan. This restructuring follows a new contract with the UAW, which included significant wage adjustments. Carvana is expanding its same-day delivery service to new markets in the South and Midwest After introducing its same-day delivery service in November to Atlanta, Dallas-Fort Worth, Tampa, and Orlando, and has now extended it to Cincinnati and Columbus, Ohio. The service allows customers to buy a vehicle online and receive it the same day, emphasizing convenience and speed during the busy holiday season. Carvana senior director of market operations and expansion Jacqueline Hearns said in a news release, “Especially in the middle of a busy holiday season, customers value speed and convenience, and we couldn’t be happier to make car buying faster and easier than ever before for Columbus and Cincinnati-area residents with our new same day delivery offering.” Customers also have the option for same-day drop-off when selling their vehicles to Carvana at designated locations. A UPS driver's TikTok video revealing his weekly paycheck gains nearly 12 million views, sparking discussions about pay transparency and career choices in various industries. Skyler Stutzman, an Oregon-based UPS driver, shared his earnings of approximately $2,004 pre-tax for one week, leading to widespread surprise over the high pay rate of UPS drivers.
Thu, December 14, 2023
Huge Tesla Recall, Dealer Valuation Dance, GM Declares CarPlay Unsafe
Shoot us a Text. It’s a beautiful December Thursday to be in the car biz. Today we’re talking about a big Tesla recall, the ebb and flow of dealership valuations and how GM continues to stand behind its decision to remove Carplay from vehicles. Tesla is initiating a recall of over 2M vehicles amid concerns raised by the NHTSA that drivers may misuse its Autopilot system. This action comes as part of a 2 year extensive investigation by the regulator into accidents linked to the driver-assistance technology Tesla's proposed software update will differ based on vehicle hardware, aiming to increase visual alerts and interaction with the Autopilot system. In one notable instance, Tesla's Autopilot system failed to recognize stopped emergency vehicles in a Texas crash, as shown in a WSJ analysis of dashcam footage and data. Another significant incident involved a fatal collision in Virginia, where a Tesla on Autopilot crashed into a tractor-trailer while traveling at 70 mph in a 45 mph zone. Despite concerns, Tesla maintains that Autopilot use is safer than manual driving, citing internal data to support this claim. Alan Haig's Q3 2023 Haig Report reveals a significant shift in automotive retail: dealership profits are declining, yet the demand for dealerships remains robust. After peaking at $6.5M in 2022, are now seeing a 17% drop per dealership from the previous year. 2023 looking to close around 5.4M The market's strength is evident, with 2023 on track to be the third most active year in dealership buy-sells. Buyers show a marked preference for top franchises in sought-after markets, while showing less interest in smaller market domestic franchises. Negotiations between buyers and sellers are increasingly challenging due to differing valuation expectations in a market with declining profits. Alan Haig remarks, "One fact that buyers and sellers can agree on, is that life remains pretty sweet in auto retail." GM's decision to discontinue support for Apple CarPlay and Android Auto in their vehicles has faced continuous criticism. Despite obvious business motivations behind this move, recent remarks by Tim Babbitt , GM’s Head of Infotainment Product, in an interview with Motor Trend have only intensified the conversation The problems are particularly pronounced
Wed, December 13, 2023
Stanton Fumes, Ford Employee Purchase, Cybertruck Rescued
Shoot us a Text. Welcome to Wednesday as we talk about the big finalization of new FTC rules that has NADA CEO Mike Stanton not mincing words. We also talk about a big stock purchase of Ford by one of their employees, as well as a Christmas rescue of a Cybertruck. The FTC has finalized a new rule yesterday, targeting deceptive car-buying practices, including junk fees and misleading promises, set to transform the automotive retail landscape by July 2024…for better or worse The rule, set to go into effect on July 30, 2024, requires transparent pricing and prohibits non-beneficial add-ons, such as oil changes packages included in an EV contract, or nitrogen that isn’t much different than normal air It aims to protect consumers, particularly servicemembers, from deceptive practices costing $3.4 billion annually. The National Automobile Dealers Association criticizes the rule for adding complexity and increasing compliance costs, noting that The Center For Automotive Research suggests it will add 2 hours to the transaction time. This counters the FTCs claim that it will reduce time by 3 hours The same study suggests that Dealers face $18 to $22 billion in extra compliance costs over a decade due to the FTC rule, far exceeding the agency's estimate of $1.36 to $1.57 billion. Mike Stanton, CEO of NADA said Tuesday: “This regulation is heavy-handed bureaucratic overreach and redundancy at its worst... The FTC made up data to support its claims, then rejected calls to slow down the process and test the effectiveness of its proposal with real consumers. We are exploring all options on how to keep this ill-conceived rule from taking effect.” Ford's chief electric vehicle, digital, and design officer, recently made the largest non-family investment in the company since 2004 purchasing $2 million in Ford stock, reflecting confidence in the automaker's future. Doug Field acquired 182,000 shares at $11.05 each which doubles the $1 million stock purchase by former COO Jim Farley in 2020, signaling optimism in Ford's direction. A Ford spokesperson commented, "Doug has a substantial ownership interest in Ford stock, which shows he believes in the company's future." A twitter user captured a Tesla Cybertruck's failed attempt to climb a snowy hill, requiring rescue by his friend’s Ford Super Duty, raising questions about its off-road capabilities, and of course, embarrassing the new vehicle The incident occurred in California's Stanislaus National Forest, where the Cyber
Tue, December 12, 2023
Ford Pumps The Brakes, Dealers Pump The Brakes, Teens Don’t
Shoot us a Text. It’s Tuesday and today we’re talking about Ford's reduced F-150 Lightning production and dealers' struggles with slow EV sales. We also take a look at a recent study on the popularity and usage habits of social media platforms among U.S. teens. Ford is slashing its F-150 Lightning production in half for 2024 as market demands and the EV narrative are rapidly shifting The new target is around 1,600 vehicles per week at the Rouge Electric Vehicle Center in Michigan according to a supplier memo obtained by Automotive News Ford has delayed about $12 billion in EV investments and adjusted production targets, even as November sales of the Lightning hit a record high. Meanwhile, Production of gasoline-powered F-150s in Michigan and Missouri remains stable "The narrative has taken over that EVs aren't growing; they're growing," CFO John Lawler said in October while announcing Ford's third-quarter earnings. "It's just growing at a slower pace than the industry and, quite frankly, we expected." Let’s hear what the Dealers have to say about what EV adoption looks like from the front lines as told in this WSJ article from today. “We thought we could build a million of them and sell them,” said LaRochelle, a vice president at Sheehy Auto Stores, which sells vehicles from a dozen brands in Virginia, Maryland and Washington, D.C. Their EV days supply is 6-12 months currently LaRochelle continued: “We have a steady number of clients that have attempted to or flat out returned their car,” said Sheehy’s LaRochelle. “I’m not hearing the consumer confidence in the technology,” said Mary Rice, dealer principal at Toyota of Greensboro in North Carolina. “People aren’t beating down the door to buy these things, and they all have a different excuse why they aren’t buying one.” Rice continued, “I start to think, you know maybe we should just all pump the brakes a little bit,” This final quote is from GM CEO Mary Barra “Although the rate of growth has slowed recently, EV demand is clearly moving in the right direction,” Barra said on a recent conference call with analysts. A combination of more affordable model options and better charging infrastructure would help encourage more people to buy electric vehicles, she said. According to a new Pew Research study , teens prefer YouTube to Tiktok as a growing number say they are on the platforms ‘almost constantly’. Approximately 90% of teens use
Mon, December 11, 2023
Are We Level?, Wholesale Stability, Sixt Shifts Gears
Shoot us a Text. It’s a beautiful new week as we delve into the U.S. auto market's resilience amidst pricing pressures. We also talk about the stabilization of wholesale vehicle prices, and German rental car company Sixt's strategic shift away from Tesla to BYD for its rental fleet. Show Notes with links: U.S. auto sales in November rose by about 9%, with significant gains for brands like American Honda, Volvo, and Toyota, amidst ongoing inventory rebuilds . However, analysts caution about the market's future, noting potential impacts of pricing and interest rates, especially as fleet sales decline and car share reaches near-record lows. "We're going to run a 15.5 SAAR this year, which is pretty freaking healthy... But going into '24, there's no question we're going to have to be more aggressive on our incentive spending to work on that affordability issue." - Andrew Gilleland, Senior VP, Toyota Motor North America. Affordability concerns loom, with expectations of more aggressive incentive spending in 2024 as automakers adapt to shifting market conditions and consumer preferences. The YoY growth: American Honda: +33%, Volvo: +26% Toyota Motor North America: +17% Hyundai: +11% Kia: +3% Ford Motor Co. was the only reporting automaker whose sales declined in November, falling by 0.4%. After a wild 2023, there may be hope for smoother sailing in 2024 according to some analysts, as the industry adjusts to post-strike market conditions. Manheim Used Vehicle Value Index reports a 2.1% month-over-month and 5.8% year-over-year decline in wholesale values, suggesting a move towards stability. Cox Automotive senior manager of economic and industry insights Chris Frey noted they predict a 4% year-over-year decline by December 2023, and foresee less volatility in 2024. Significant price drops observed in various vehicle categories, including compact cars (-11.3%) and luxury vehicles (-6.3%), as the market adjusts post-UAW strike. Black Book's Used Vehicle Retention Index also shows a decline, reflecting a correction phase in the used vehicle market, with improved auction conversion rates. Major German rental car company, Sixt, is saying goodbye to its Tesla fleet , citing high repair costs and plunging residual values, while shifting focus to more sustainable and cost-effective options. Sixt, announces plans to phase out Tesla EVs from its fleet, deeply impacted by Tesla's
Sat, December 09, 2023
Dealers Supporting Athletes at Their Universities
Shoot us a Text. Writers Chris Reeves and Kristi Canada tell us how Ally Pinion of Chastang Ford wrote in to share with us their story of supporting the University of Houston through a new NIL (Name, Image, Likeness) deal. Have a story of dealers impacting their community? Share it with us at https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, December 08, 2023
UAW ‘Strikes’ Again, Dealers Lament, Peach Fuzz is Prime Time
Shoot us a Text. It’s Friday! As we close out the week, we’re covering a push by VW workers to join the UAW, how dealers are choosing pessimism, and the buzz about peach fuzz. Show Notes with links:Crossing a notable benchmark, the UAW has crossed the 30% support threshold at Volkswagen's Chattanooga facility, signaling a major shift in its organizing efforts. Now that they’ve reached 30%, those who signed the cards will become more public to gain more support. If they reach 70%, it will trigger a vote. And don’t be surprised if you see Shawn Fein show up. This progress is part of a larger push by the UAW to unionize 13 non-union U.S. plants, targeting nearly 150,000 employees across various automakers, including Tesla and Toyota. Volkswagen's Chattanooga plant has a history of narrow votes against UAW in 2014 and 2019, amidst strong opposition from local lawmakers. After the campaign, VW told employees, “We prefer to continue our direct relationship with you, working together as one team,” the New York Times reported at the time. "Times have changed and our time is now," the UAW stated in a new video, highlighting their recent successes and motivating workers towards unionization. Cox Automotive's Q4 Dealer Sentiment Index reveals a growing pessimism among auto dealers, as they face a comedown from previously favorable market conditions. Franchised dealers expressed the worst market sentiment since the second quarter of 2020, with a current market rating of 49, reflecting a shift from heightened profitability to more normal conditions. The survey, including responses from 561 franchised and 475 independent dealers, indicates a significant decline in optimism, with a more pessimistic outlook for the upcoming quarter than the current one. Key challenges identified by dealers include high interest rates, economic concerns, and market conditions, with a notable shift away from previous inventory issues. From the AutoNews article: But Cox doesn't think a threat looms on the horizon. Instead, Smoke said it attributes the negative sentiment to "moving away from the best years" in dealer history. Sales won't be an issue. Dealers are lamenting being squeezed on pricing and profitability. Pantone has announced " Peach Fuzz " as its 2024 Color of the Year, symbolizing comfort, kindness, and tenderness, in contrast to the turmoil of recent years. The color marks Pantone's 25th anniversary of its Color of the Year program, whic
Thu, December 07, 2023
Profitable Stellantis EVs, GM Back to Office, Elon’s Schematics
Shoot us a Text. Thursday is upon us as company Christmas parties seem to be in full swing across the country! Today we look into a surprising new development in the profitability of Stellantis’ EV unit, GM bringing employees back to the office, and Tesla calling their shots with a little letter to other OEMs. Show Notes with links: Stellantis CEO Carlos Tavares announced the company's EVs were profitable in the U.S. and Europe, having closed the gap with internal combustion engines. Tavares emphasized the necessity of sharp cost management to maintain profitable and affordable pricing for middle-class consumers. Tavares also noted the gap in profit between EV and ICE is closing more quickly in Europe because they started there sooner. The company will be expanding its EV lineup, planning over 75 models globally by 2030, with a focus on models like the Ram ProMaster van and Jeep Recon in the U.S. A recent partnership with Chinese EV maker Leapmotor aimed to bring cost-competitive electric models to European markets. Tavares also noted that Stellantis is "fighting head-on" with Tesla in Europe while CFO Natalie Knight said Stellantis is now Europe's No. 2 EV seller, beating out Tesla General Motors (GM) has ended its flexible "Work Appropriately" policy, mandating office presence for three days weekly. This shift marks a significant change from the pandemic-era approach. GM CEO Mary Barra announced the end of the flexible remote work policy, requiring staff within 50 miles of a GM office to attend in person Tuesday to Thursday. The policy, effective January 8, 2024, aims to meet critical business needs and maintain company culture. GM initially allowed department-specific policies due to staff pushback but has now joined other firms in tightening remote work options. Tesla is distributing a free guide on 48-volt architecture to other car company CEOs, challenging them to enhance their electric vehicle (EV) manufacturing processes. This guide details the implementation of 48-volt systems, key for advanced features like "steer-by-wire" 4-wheel steering, marking a significant leap from traditional 12-volt systems. Tesla's move democratizes knowledge in the EV industry, typically characterized by closely-guarded technological secrets, fostering a more collaborative environment. Jim Farley <a href='ht
Wed, December 06, 2023
Electric Expanding, The 500 Is Back, New AI Alliance
Shoot us a Text. Welcome to Wednesday as we talk about a big eclectic partnership, a little electric car, and an alliance that attempts to keep AI safe. Show Notes with links: Two major OEMs are both partnering to expand their charging networks across the US. GM is partnering with EVgo and Pilot and Ford will partner with Ecel Energy to provide a total of over 30k charging stations for commercial and residential drivers. GM plans to support the installation of 25 locations and 100 chargers before the end of the year and an additional 200 locations in 2024. The chargers will be co-branded “Pilot Flying J” and “Ultium Charge 360,” reflecting the two companies that will be funding the project. Ford is partnering with Xcel Energy to install 30,000 EV charging ports for fleet customers by 2030. “While other charging providers battle for market share and go through turmoil. Ford is a trusted resource with more than 120 years of experience,” Dave Prusinski, global chief revenue officer at Ford Pro, said. “Yet today we’re reinventing ourselves daily and running at startup speeds.” Fans of small Italian vehicles rejoice as a revamped Fiat 500e is set to return to the U.S. in early 2024. The tiny vehicle boasts a 149-mile range, a significant increase from its previous 84 miles. Powered by a 42-kWh lithium-ion battery, the 500e includes a range of driving modes and safety features, like automatic emergency braking and lane-keep assist. The little vehicle weighs 3000 pounds and even welcomes drivers with a digital tone that, according to the company, "sets the tone for an immersive Italian experience." Customers can buy the car from the Fiat Live Store without going to a dealership where they can interact with a “Fiat Genius” "The 2024 500e is a modern, tech-forward take on a beloved classic... Try not to smile when you drive this car," says Fiat CEO Olivier Francois. In a significant move for the AI industry, Meta and IBM have joined forces to form the AI Alliance , a collective effort to promote open-source AI development. This initiative includes major partners like NASA, Intel, and Yale University. The Alliance's agenda includes developing benchmarks for AI creation, building a catalog of vetted tools, and advocating their use among develope
Tue, December 05, 2023
EVs Soar, Vetter Tweets, Bitcoin Rebounds
Shoot us a Text. Tuesday is for inviting Michael Cirillo to the pod! We are covering a counter-narrative to the EV decline rhetoric, Alex Vetter getting cheeky on X, and crypto currencies experiencing a surge. Show Notes with links: BloombergNEF's latest zero-emission vehicle report , unveiled at COP28 in Dubai, challenges the narrative of an EV slowdown, highlighting significant growth and future potential in the EV market. EV sales are defying slowdown rumors, with worldwide projections to reach 14 million in 2023, a 36% increase from 2022. EV-only sellers such as Tesla and BYD are on pace to capture 7% of global sales in 2023. The U.S. market is showing remarkable growth with a projected 50% increase in EV sales this year. Emerging economies like India, Thailand, and Indonesia are rapidly adopting EVs, driven by affordable models in the US$10,000 range, and changing market dynamics. In the US, the Inflation Reduction Act has sparked $100B of investment in EV and battery manufacturing. One thing that has stalled are global commitments to phasing out ICE vehicles. Only 19% of countries have ICE phase out target dates, and the automakers committed to it only represent 32% of the market. Starting with a cheeky tweet, Alex Vetter, CEO of Cars Commerce, casts a skeptical eye on Hyundai's Amazon deal, emphasizing his company's superior capabilities in facilitating vehicle sales. In a candid interview, he critiques the pilot project's scope and its implications for the auto industry. Vetter's cheeky take on the deal: “@Hyundai — please dm me, we can enable ALL of your retailers vs 18 and do it with people actually buying cars, not dog food.” He stressed that car buying is a multichannel experience, doubting Amazon's ability to match the depth of research and advice provided by dedicated auto platforms. Vetter points out the PR benefits for Hyundai but is skeptical about Amazon's impact on actual car sales, highlighting the need for targeted digital platforms. He suggests that digital platforms like Cars Commerce are more efficient in reaching active car buyers, reducing the waste seen in mass-market advertising. It has been a while since we have talked about crypto, but the major currencies are seeing quite the rebound as Bitcoin jumps over $41k and Eth gets back about $2200. Experts believe the potential drop in interest rates by the Fed are impacting the crypto outlook as well
Mon, December 04, 2023
Jolting EV Repairs, Masters Degree In Auto, Mc’D’s New Idea
Shoot us a Text. It’s a new week, meaning new opportunities in the retail auto industry. Today we’re covering why EVs cost more to repair than ICE vehicles, Northwood University’s new Master’s Degree, and McDonald’s new restaurant spinoff. Electric vehicles (EVs) are proving costly to repair after accidents, surprising many owners with high bills and extended repair times. A recent Wall Street Journal article said that repairs for EVs are generally more expensive than gas vehicles due to the need for more replacement parts, complexity, and fewer specialized repair shops. On average, EVs cost $6,587 to repair post-collision, versus $4,215 for traditional vehicles, with insurance premiums also being higher for EV owners ($357/month for EVs vs. $248/month for ICE). Special considerations like lithium-ion battery risks and the use of exotic materials like aluminum in EVs add to repair costs and complexity. According Scott MacFiggen’s neighbor backed into his R1T pickup truck last summer, he faced a $22,000 repair bill and 2½ months wait, reflecting a common trend among EV owners. Despite current challenges, signs point to potential cost reductions as spare parts supply increases and more repair shops gain expertise. “People are used to hearing that EVs have fewer parts than a combustion vehicle, but that is not the case in collision repair,” - Marc Fredman, Chief Strategy Officer, CCC Intelligent Solutions. Our friends at Northwood University are launching a first-ever specialized Master of Science in Organizational Leadership, which will provide in-depth exploration of auto industry-specific challenges and leadership skills. Features automotive-focused readings and cases, interactive and experiential learning scenarios From the Auto Remarketing article: The program, designed for participants with diverse auto industry experiences, offers a path for graduates of Northwood’s automotive marketing management and automotive aftermarket management programs, creating “a unified and comprehensive educational journey,” Northwood said in a news release. Flexible 24 month online format w classes starting on Jan 15th. McDonald's is further unveiling CosMc's, a secretive new restaurant spinoff , stirring intrigue and speculation in the fast-food industry and from one influential tik-tocker Based on a little-known McDonaldland character from the late '80s, CosMc's aims to blend McDonald's core essence
Sat, December 02, 2023
Everyone Has a Bicycle Story, and Now These Kids Do Too Because of This Dealer's Generosity
Shoot us a Text. It's December! Which means different weather patterns for different parts of the US, and also means that we get to talk about how dealers are giving gifts to kids. Writers Chris Reeves and Kristi Canada join the show to share how Carter Myers Automotive donated over 200 bikes to kids through their local Salvation Army! Have a story of dealers making a difference that you'd like to share? Send it to us at https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, December 01, 2023
Cyber-Thursday, and Sharing the Customer’s Voice with Mickey Anderson
Shoot us a Text. It’s officially the last month of 2023 and we’re reviewing yesterday’s much anticipated launch of the Cybertruck and interviewing the dealer behind a letter to the President. Show Notes with links: Tesla's long-awaited Cybertruck is finally here following a highly publicized launch event at the company’s Austin, TX factory yesterday. With a starting price tag 50% above initial estimates the futuristic truck has an uncertain future. Pisces range from $60,990 to $99,990 across three variants. The top model, 'Cyberbeast,' is slated for next year, alongside the all-wheel drive version starting around $80,000. Entry-level model expected in 2025 at approximately $61,000. Elon Musk claims the Cybertruck offers "more utility than a truck" and speeds "faster than a sports car." In the demo, it out pulled an F350 Diesel and bea a Porsche 911 in a race…while towing a Porsche 911 The longest-range variant estimates 340 miles, extendable to 470 miles with an additional battery pack, falling short of the originally touted 500 miles They also did a half-baked redo with a glass strength demo where a baseball was thrown at the window to demonstrate its durability Our favorite review is from popular tech YouTuber Marques Brownlee Yesterday we covered the EV Voice of the Customer letter, which urged President Biden to reconsider aggressive EV targets and was signed by almost 4000 dealers. Today, we’re joined by Mickey Anderson, President and CEO of Baxter Auto Group and leading force behind the letter. The letter expressed concerns over the EPA proposal pushing EV sales to 60% by 2030 and 67% by 2032. The letter, titled “The Voice of the Customer,” is meant to show the political powers that the dealer is closest to the customer and ready to speak on their behalf. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, November 30, 2023
F-Bomb-Drop On OEMs, 4000 Dealer Letter, RIP-Legend
Shoot us a Text. Welcome to Thursday as we say farewell to November. Today we talk about Shawn Fain’s return to the headlines as well as a letter that was signed by 4000 dealers and sent to the President. We also pay our respects to a legend. He’s baaaaack! After a hard fought and successful effort in recent negotiations with Detroit’s Big 3, Shawn Fain and the UAW are putting on a full court press to unionize every other non-union automaker with a rather public initiative as workers at 13 non-union automakers will be announcing simultaneous campaigns Even the new EV entrants are being looped in as Tesla and Rivian are in the mix Fain said in a video: "To all the auto workers out there working without the benefits of a union, now it's your turn." The money is there. The time is right," he added. "You don’t have to worry about how you’re going to pay your rent or feed your family while the company makes billions. A better life is out there." Tesla CEO Elon Musk, said when asked about the union effort, "I disagree with the idea of unions." and continued that if Tesla is unionized, "it'll be because we deserve it and we failed in some way." Multiple other OEMs released statements pointing to their history of treating employees well and saying unions will make it more challenging to do so Nearly 4,000 U.S. dealerships have collectively urged President Biden to reconsider aggressive EV targets, focusing on current challenges in consumer adoption and infrastructure readiness. The initiative, led by Mickey Anderson, CEO of Baxter Auto Group and a broad group of Dealers, representing various states and car brands, expressed concerns over the EPA proposal pushing EV sales to 60% by 2030 and 67% by 2032. The letter, sent on Tuesday begins with appropriate title “Voice of the Customer” and continues; "What I and other dealers identified early on is that the voice of the customer was really absent from this entire conversation, and there's no way that we'll have a scalable solution if we don't have consumer adoption." "Electric vehicle demand today is not keeping up with the large influx of BEVs arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots." We’re going to take a moment to pay our respects to a legend. Charlie Munger, Warren Buffett's right-hand man and a pivotal figure in building Ber
Wed, November 29, 2023
GM Projections Up, Dealer Values Remain Strong, Wegmans Hot Meals
Shoot us a Text. Welcome to episode 600 of the Automotive Troublemaker. Today we dive into how GM seems to be fine after the UAW strike, how dealership values are staying strong, and how Wegmans is trying to change the way we shop for groceries. General Motors emerges from a costly six-week UAW strike, projecting strong profits for 2023. Despite increased labor costs, GM's strategic planning and stock buyback indicate a robust financial future. GM suffered a $1.1 billion hit due to the UAW strike but forecasts a $9.1B-$9.7B net income for 2023. The company plans a $10 billion share buyback and a 33% dividend increase, reflecting confidence in its financial health. The new contracts with UAW and Unifor are expected to raise GM's North American labor costs by $1.5 billion in 2024. GM's stock rose 8.9% in premarket trading, signaling investor optimism. “I am confident in our ability to continue generating significant free cash flow as we make the EV transition” stated CEO Mary Barra. Despite a dip in dealership values in 2023, the market remains robust, with dealership buy-sell activity and profits significantly higher than pre-pandemic levels, as reported by Haig Partners. Blue sky values have decreased by 12% since 2022 but are still over double pre-pandemic levels and 2023 is on track to be the third most active year for dealership transactions, fueled by 385 transactions through the end of Q3. High demand persists for dealerships in fast growing regions with “pro-business climates”, with the report citing recent record sales in South Florida and pending sales that will set record-high values for their brands. Publicly traded dealer groups saw a 92% drop in domestic dealership acquisition spending in Q3, but overall spending remains high. Fixed operations continue to drive profits, with a 9% year-over-year increase in gross profit. The brand with the most interested buyers is Toyota. Wegmans has opened a novel hybrid supermarket/food hall in Manhattan, signifying a shift in the grocery industry towards multi-functional, community-oriented spaces. The new Astor Place store in NYC features a unique blend of grocery and food hall concepts, offering diverse food options, such as a sushi bar, bakery, fish market sourcing selections directly from Japan, and a pre-made salad area. This shift caters to consumer preferences for convenience, with supermarkets offering restaurant meals, meal kits, and ready-to-eat options.</l
Tue, November 28, 2023
Electric Deals, Jersey Green, Keyless Cars
Shoot us a Text. Today we dive into the big discounts making EVs more affordable than ever. We also talk about New Jersey's move to ban gasoline cars by 2035, as well as the options and soon-to-be real future of digital car keys. Amid increasing US production and surplus inventory, EVs are seeing significant discounts. However, this buyer's market might not last long. OEMs from Ford to Tesla have been cutting EV prices in response to a surplus in the US, with some discounts up to 31%, making them competitively priced against gas powered equivalents For instance, the BMW iX, with advanced features like a touch-responsive sunroof and gesture-controlled stereo, is available at a 17% discount for $80,195. For more budget-friendly options, Nissan's Ariya is listed at an 18% discount for $36,690, while the Hyundai Kona Electric is offered in Atlanta at a substantial 31% discount, priced at $29,990. Elaine Buckberg, a former economist at General Motors and a senior fellow at Harvard University says,“The stories being written that it’s falling apart are just dead wrong. The aggressive pricing is likely reflective of an inventory imbalance that will regulate as EV sales are up 2.5 times in the last 12 months 2035 might just be the new 2030. Joining states like California, New York, and Colorado, New Jersey is doing what it can to speed up its EV Transition and has announced a ban on manufacturer sales of new gasoline vehicles by 2035. New Jersey adopts California's Advanced Clean Cars II regulation, aiming for 100% zero-emission vehicle sales by 2035. The rule mandates that 43% of cars produced by 2027 be zero-emission, increasing to 68% by 2030. This regulatory shift doesn't impose direct obligations on consumers or dealers, but significantly influences manufacturer production. The New Jersey Coalition of Automotive Retailers criticizes the move, citing concerns over consumer choice and affordability arguing the mandate could significantly disrupt the market, impacting both consumers and car dealers Imagine a world where losing your car keys doesn’t matter? Some of the brightest minds are doing just that as digital keys are steadily making their way to center stage. While adoption is growing, questions around technology choices, security, and compatibility remain. Daniel Knobloch, vice president and a board member at Car Connectivity Consortium who
Mon, November 27, 2023
EV-Hybrid Battle, Tesla’s Two Big Releases, Busy Black Friday Results
Shoot us a Text. Retail Auto is ready to roll after a great Thanksgiving weekend as we talk about the very tight race for the electric future between two titans. We also cover two notable releases from Tesla this week, as well as a review of a very busy Black Friday Tesla and Toyota are in a philosophical and practical head to head as Elon Musk's push for an all EV world is being pushed back on by Toyota's renewed focus on the rapid (and affordable) deployment of its hybrid technology. Musk aims to surpass Toyota as the top-selling automaker with Tesla's all-electric lineup by 2030 as Tesla is already outselling some of Toyota’s bestsellers in the U.S. The Model Y surpassed Camry this year and was within 7000 units of the Rav4 Despite Tesla's growth, there's a slowdown in EV sales, while Toyota's hybrids, including Lexus models, are gaining traction due to their affordability and improved efficiency. Toyota Chairman Akio Toyoda emphasizes the consumer appeal of hybrids as a way to go mostly electric without the inconveniences Tesla, facing a competitive market, has cut prices and seen growth in Model Y sales, but struggles with profitability, as its profit fell 44% in the third quarter. David Christ, Toyota North America's brand head said: “The buzz of electrification in the industry has somewhat mainstreamed hybrids. It’s really had an awakening.” Tesla has two releases of sorts this week. FSD v12 and a Cybertruck: Tesla has begun releasing its Full Self-Driving (FSD) version 12 update to employee testers, a key step in achieving its goal of true self-driving capability. This update notably shifts vehicle control from hardcoded engineering to neural network-based systems. The engineers had the first release, now all employees, next is consumers Previously Musk had a stated goal of FSD capability by the end of this year On Thursday (Nov 30th) Tesla will host the much anticipated Cybertruck Delivery event where the first production units will be delivered to some very patient new owners Black Friday 2023 has defied analyst expectations with a record $9.8 billion in online sales, showcasing American consumers' adoption of digital shopping for those great Black Friday deals Online sales hit a hi
Fri, November 24, 2023
Black Friday Gap and an Inspiring Dealer Story
Shoot us a Text. It’s Black Friday and the Gap might be back. We also caught up with married Dealers Michael and Jennifer Lee of Freedom Kia and Seneca Ford who talk about buying a first time dealership DURING the pandemic. We also talk about the impact of encouraging your teams to give back as a part of their job. BLACK FRIDAY BOGO SALE going on now on all ASOTU Ts and hats! Gap’s stock price is up over 30% this week as the new CEO, Richard Dickson, announces a bold strategy to revitalize the company's four brands - Old Navy, Gap, Banana Republic, and Athleta, emphasizing a clearer brand perspective and innovative marketing. Old Navy: Focusing on fun and value, Old Navy needs consistent delivery of bold narratives and trend-aware assortments to enhance customer appeal. Gap: Dickson highlights the necessity for Gap to re-engage in cultural conversations, offering trendy assortments and culturally relevant messaging. Banana Republic: To move away from a transactional approach, Banana Republic is targeting the quiet luxury space with refined products and pricing strategies. Athleta: Addressing lackluster performance, Athleta plans to return to its performance roots, with a comprehensive brand reset expected to take time. "We’re telling too many stories. We need to edit ourselves to tell a more clear and precise story that stays consistent and has a relentless, repetitive narrative to it." - Richard Dickson. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, November 23, 2023
Turkey Talk, Parades or Football, and Paul plays Christmas Music
Shoot us a Text. On this Thanksgiving Day, we are thankful for YOU! Dealers across the country are gifting turkeys during November, Kyle gets mad at Paul for playing Christmas music, and Jordan joins the pod as we discuss the Macy's Thanksgiving Day Parade alongside Football. Happy Thanksgiving! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, November 22, 2023
OpenAI Drama, Ford's EV Plant Downsize and Police Hogging Hybrids
Shoot us a Text. On the homestretch to Thanksgiving, we’re concluding a rollercoaster week at OpenAI with Sam Altman's surprising reinstatement. We’re also talking about Ford's strategic downscaling of its Michigan EV battery plant, and Ford discontinuing certain hybrid models to prioritize police. (00:00:00) Intro (00:01:40) More than Cars Premiere (00:02:45) BOGO Sale ASOTU Swag (00:03:21) OpenAI brings Sam Altman back as CEO (00:07:31) Ford Scales down EV Battery Plant in Michigan (00:09:55) Ford is Killing the Explorer Hybrid Because Cops are Buying All of Them After a wild few days, Sam Altman, initially ousted as OpenAI CEO, has been rapidly reinstated following intense pressure from stakeholders and a massive-exodus threat from employees At 1am today , Alman posted on X , “i love openai, and everything i’ve done over the past few days has been in service of keeping this team and its mission together. when i decided to join msft on sun evening, it was clear that was the best path for me and the team. with the new board and w satya’s support, i’m looking forward to returning to openai, and building on our strong partnership with msft.” Former Salesforce co-CEO Bret Taylor and ex-Treasury Secretary Larry Summers join OpenAI's board. Hundreds of OpenAI employees threatened to move to Microsoft if Altman wasn't reinstated. “Returning to OpenAI & getting back to coding tonight,” - Greg Brockman, OpenAI co-founder. Ford announced they are scaling back their plans for its EV battery plant in Marshall, Michigan, citing slower-than-expected EV adoption Ford is restarting construction but reducing the plant's size and capacity, impacting job creation and investment. The project now anticipates 1,700 jobs as opposed to the initial estimate of 2500, a 32% decrease, and a total investment cut to $2.2 billion. Despite scaling down, Ford remains committed to EVs, including LFP and NCM battery technologies Ford has stopped production of the Explorer and Lincoln Aviator Hybrids, apparently redirecting focus to meet the high demand for the Explorer Police
Tue, November 21, 2023
Flexible Ford, Toyota’s Fines, and a Fireproof Social Windfall
Shoot us a Text. As we close in on Thanksgiving, Ford Dealers are extra thankful as Ford's EV dealer program changes. We also talk about Toyota's $60 million penalty for poor lending practices, as well as a viral story of a Stanley tumbler surviving a Kia car fire. Announcements: BOGO sale going on now More Than Cars: Episodes 1-3 Mashup Premiere on Tuesday, November 21 at 7PM ET. Join the event on LinkedIn ASOTU CON will be May 14-17, 2024 (Tuesday-Friday) at the Live! Casino and Hotel Maryland Following a legal dispute in Illinois where Ford's program was challenged for violating state franchise laws. The company has made significant changes to its EV certification program for dealers, significantly cutting training costs and charger installation requirements amidst legal challenges and critical dealer feedback. Training costs for dealers have been cut in half and Ford has also reduced the number of Level 2 chargers required for dealers in the higher tier “Certified Elite”from five to only three, and the lower “Certified” level now only requires two. Ford remains committed to the EV program, stating: "It is designed to make sure that Ford and its dealers provide Illinois Ford EV customers with a segment-leading experience." Toyota Motor Credit Corporation is facing a $60 million penalty by the U.S. Consumer Financial Protection Bureau (CFPB) for alleged violations in refund practices on bundled products in loan contracts, impacting consumer credit reports. CFPB orders Toyota to pay $48 million to affected customers and a $12 million penalty. The issue centers on difficulties in canceling bundled products in car loan contracts and inaccurate refunds. Toyota's financing unit was accused of providing misleading information to consumer reporting companies about borrowers' payments In a remarkable incident made for Tiktok, a Stanley tumbler survived a Kia Sorento car fire , leading the company to not only replace the tumbler but also the burnt car as the owner made a video where she pried the tumbler from the charred interior and shook it to reveal that there was still ice in it The incident gained viral fame on TikTok, with over 80 million views, showcasing the tumbler's resilience. Stanley, seizing the opportunity for positive brand engagement, offered to replace both the tumbler and the car. The burnt
Mon, November 20, 2023
It’s Over Over, EV Makers Fighting For Life, AI Leadership Shuffle
Shoot us a Text. As we start off what will certainly be a busy holiday week, we tie up a few loose ends around the UAW strike. We also talk about some EV maker’s attempts to jolt waning consumer demand, as well as a big shakeup in AI leadership. Some expected, but important news broke late last Friday , and we’d be remiss if we didn’t at least mention it after extensively covering the UAW strike for the better part of the last three months: the Ford and Stellantis contracts have reached the number of votes needed to pass the contract. It’s over, over. Both companies supposedly passed the measure with strong support of 68% As EV demand has had a highly publicized demand drop among consumers, we are seeing many, highly invested companies adjust plans and make moves to bring EV demand to life. Vietnamese EV maker VinFast is hoping to get customers over the hurdle of buying from a new company by promising to pay consumers directly if they have service issues. Repairs are categorized into three types: minor inconveniences like hvac, cameras, etc ($100), inoperable vehicle issues like regenerative braking, safety functions, etc ($300) Tesla has decided to lift its ban on resale of their much anticipated Cybertruck ahead of their ‘delivery event’ scheduled for November 30th where the company will be delivering a reported 10 vehicles The 10 unit delivery event was confirmed by a company executive. This limited delivery, following years of anticipation and delays, marks the initial phase of the Cybertruck's launch, with Tesla expected to gradually increase production towards a target of 5,000 units per week by 2025 Microsoft has recruited ex-OpenAI CEO Sam Altman as well as President Greg Brockman as Altman was abruptly ousted as CEO from OpenAI, the company he co-founded and the creator of ChatGPT. After the announcement, Brockman resigned in protest. According to CNN contributor Kara Swisher, who cited sources familiar with the situation, the crisis at OpenAI was significantly fueled by a divide between Sam Altma
Sat, November 18, 2023
Who Doesn't Love A Free Car? Especially When Its For A Veteran!
Shoot us a Text. On this pre-Thanksgiving Saturday, Paul and Kyle are joined by ASOTU writers Chris and Kristi. For our More Than Cars moment today, we're covering a partnership between MileOne Autogroup and Vehicles for Change. They came together this Veteran's Day to give away 10 cars to veterans! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, November 17, 2023
Fain’s Last Dance, Hyundai <3 Amazon, Chick-Fil-A in the Sky
Shoot us a Text. We’re wrapping up a busy week of news with a busy day of news as we give the details on GM’s slim ratification of the UAW contract. We also talk about the first vehicles to be sold on Amazon, as well as chicken sandwiches and waffle fries from the skies. Show Notes with links: We’ve made it! GM has officially ratified the contract with the UAW, approving the deal by a 55 to 45 margin, nearly 3,300 votes out of over 35,000 cast. Strong support from workers at GM Components Holding plants, parts distribution centers, and electric vehicle battery plants, with some groups showing as high as 96% approval. The deal includes immediate raises for many of these workers, with increases up to 89% for some, and a uniform wage scale across different plant types. 53% of higher paid assembly workers voted against it Cornell labor relations expert Art Wheaton, noted that the tight final vote is actually a good thing stating, “It’s the sign of a good negotiation. If they got a 99 percent vote, that means GM overspent. If they got 49 percent, that means GM was too cheap. If you’re at more than 50 percent, it means you threaded the needle.” In a move many have been predicting, Hyundai and Amazon revealed at the Los Angeles Auto Show that starting in 2024, Hyundai will be the first automaker to sell new cars on Amazon's platform . The initiative allows customers to purchase new Hyundai cars online from a Dealer, offering options for local dealership pickup or home delivery. The partnership extends to technology integration, with Hyundai incorporating Amazon’s Alexa technology into their vehicles from 2025. The partnership extends to technology integration, with Hyundai incorporating Amazon’s Alexa technology into their vehicles from 2025 with Amazon saying they will be adding other brands to the platform by the end of next year Brian Kramer quoting David Spisak on LI “Most disruptors don’t sneak up on competitors. They are allowed to walk right in through the front door.” Chicken sandwiches and waffle fries are falling from the skies as drone delivery of your Chick-Fil-A order might qualify for drone delivery in Brandon, Florida The drone delivery is available Monday through Friday from 10:00am to 6:00pm, offering a $0 delivery fee for a limited time. The service is subject to availability and delivery distance limitations. The process involves careful preparation of or
Thu, November 16, 2023
Second To Last, It’s All Hybrid From Here, Are The Corporations AI Ready
Shoot us a Text. One week from today we’ll be eating Turkey and helping our great aunt update her iphone once she remembers her password. But for now, we’re much closer to the ratification of the UAW Contract. We also talk about Toyota going all hybrid on the Camry, as well as assessing the level of AI readiness of US companies. Announcements: Edge Webinar with Invoca TODAY at 2pm EST: Revolutionizing Phone Call Management More Than Cars: Episodes 1-3 Mashup Premiere on Tuesday, November 21 at 7PM ET. Join the event on LinkedIn ASOTU CON will be May 14-17, 2024 (Tuesday-Friday) at the Live! Casino and Hotel Maryland Show Notes with links: This may be the second to last story you hear from us about the UAW strike as they appear to be nearing the approval of all contract agreements with the Detroit 3. Despite initial opposition at several General Motors assembly plants, the agreements are leaning towards acceptance, marking a significant shift in labor relations within the industry. Toyota, in a significant strategic shift, announced that the next-generation Camry will be sold exclusively as a hybrid . This move reflects Toyota's adapting to evolving market trends, and consumer preferences for more environmentally friendly vehicles. A recent Cisco survey, named "Cisco’s AI Readiness Index," gathered responses from over 8000 business leaders in companies with more than 500 employees across 30 different markets. It found that while 97% of respondents felt an urgent need to implement AI, only 14% felt fully prepared for the transition. (00:00:00) Intro (00:02:40) Edge Webinar w/ Invoca (00:03:22) More than Cars Family & Friends Episodes Mashups (00:05:29) UAW nearing Contract Agreements (00:08:05) 2024 Toyota Camry released in Hybrid only (00:10:32) Cisco’s AI Readiness Index Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, November 15, 2023
Learning from Europe with Paul De Vries
Shoot us a Text. It’s Wednesday and it seems conference season is coming to a close. This morning is a bit of a special episode as Paul got to chat with Paul de Vries, who has a unique perspective on the auto industry coming from Europe. Show Notes with links: Paul De Vries gives us some insights into the shift to agency models in Europe and how the Dutch market is navigating the shift to EVs. Dutch dealerships are struggling with the agency model, leading to dropping sales and mistakes in invoicing. OEMs are reframing dealer models as agency models to gain benefits, despite dealers' resistance. Dutch dealers investing in solar panels, energy contracts, and selling extra services like energy storage and charging. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, November 14, 2023
Workers Winning, Dirty Come Clean, Is Google Apple’s Sugar Daddy
Shoot us a Text. It’s an amazing Tuesday to be in the car business as we talk about some favorable effects from the UAW strike for workers at other OEMs. We also cover Exxon’s transition into lithium production, as well as a little slip from a Google employee during the trial. We’re starting today with two labor related stories… The first is Stellantis has announced voluntary buyout packages for 6,400 U.S. salaried employees, citing challenging market conditions. This move aligns with the company's transition to EVs and its Dare Forward 2030 strategy In a statement the company said: "As we prepare for the transition to electric vehicles, Stellantis announced today that it will offer a voluntary separation package to assist those non-represented employees who would like to separate or retire from the company to pursue other interests with a favorable package of benefits," The decision coincides with UAW members voting on a labor agreement that includes double-digit raises and $19 billion in manufacturing investments. Hyundai Motor has announced a 25% wage increase for nonunion production workers at its Alabama factory by 2028, following similar moves by Toyota and Honda. Honda also recently announced an 11% pay hike for U.S. production workers, influenced by UAW negotiations. Exxon is aiming to be a leading producer of lithium production by the year 2030 as they announced their plan to start lithium production in the U.S. by 2027, and producing batteries for one million EVs annually Exxon aims to produce lithium from briny waters in Arkansas, using conventional drilling and direct lithium extraction technology. "In the long term, lithium really is a global opportunity," said Dan Ammann, president of Exxon's Low Carbon business unit. "We are starting here because there is an urgent need to ramp up domestic production of these critical materials." Fun fact: Exxon actually invented the rechargeable lithium-ion battery in the 70s yet has no plans to invest in EV charging stations like its rivals BP and Shell. Just when you thought Apple and Google were just good friends, it was revealed in Google’s antitrust trial that they pay 36% of all ad revenue from Safari to Apple. This figure was revealed in G
Mon, November 13, 2023
UAW Updates Not Over, EVs Like Phones, Flying Ain’t Fancy Anymore
Shoot us a Text. We are coming to you from sunny Palm Beach Florida at The Pasch Group’s Modern Retailing Conference. The day brings news of the UAW votes not going perfectly so far, Foxconn asserting EVs that could be easier to make if they are made like phones, and airlines getting some brutal feedback on the frontlines. Show Notes with links: In a potential turn of events, Ford's Kentucky production workers voted against a proposed UAW contract while skilled trade workers voted for it, highlighting divisions within the workforce. 55% of Ford's Kentucky production workers voted against the tentative UAW contract, while 69% of skilled trades workers approved it, as reported by UAW Local 862. The vote casts doubt on the contract's ratification, previously expected to increase Ford's operational costs significantly as the union has not released the final, combined percentage of the vote So far, 71% of workers across Ford's facilities have voted for the UAW deal, but votes at key plants like Michigan's Dearborn Truck plant are pending. Foxconn, known for iPhone manufacturing, is aiming to reshape EV manufacturing . Led by Jack Cheng, a Foxconn affiliate is working to implement an outsourcing model similar to that used for products like iPhones, potentially lowering EV production costs and impacting the global EV market. Cheng's strategy involves outsourcing EV production to reduce costs, contrasting with traditional automakers' preference for in-house design and assembly. Foxconn's expansion in the EV sector includes collaborations with Tesla and significant investments in Asia and the U.S. They already have facilities across Asia, India, and started to produce vehicles for Lordstown Motors in an Ohio plant before the company went bankrupt. Cheng points out the disparity between the price of an EV in China and the US and proposes he can help bridge the gap “The world is wasting too much time tooling the same parts and losing money. It doesn’t make sense. What I learned in China in the last 20 years—I can replicate that.” It seems flying isn’t getting more delightful. Complaints against airlines in the U.S. have surged to 24,965 in the first three months of 2023, with a notable increase in issues related to accessibility. In the first quarter of 2023, airline complaints in the U.S. rose by 88% compared to the same period in 2022. Complaints continued to increase in April and May, with a
Sat, November 11, 2023
A Walmart Full of Coats... And What This Dealer Did With Them
Shoot us a Text. Welcome to Saturday! Guest Hosts Jordan Cox and Nathan Southwick are giving Paul and Kyle a break. Head Writer Chris Reeves today presents us the story of how the Ciocca Auto Group have been giving back coats to the kids in their community for years, and what they did this year. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, November 10, 2023
Live from Used Car Week with Steve Greenfield and NAVIcon Winner Jimmy Douglas of Plug
Shoot us a Text. We’ve got that Friday feeling as we recap Used Car Week with Steve Greenfield. Plus we host the winner of the NAVIcon Cup, Jimmy Douglas of Plug. Plug won the 3rd Annual NAVIcon Cup, pitching against other tech startups to a panel of industry leading judges, including ASOTU’s own Kyle Mountsier. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, November 09, 2023
Honda’s Earnings Bump, The Reign of Fain, Sky High Demon
Shoot us a Text. We’re live from Used Car Week 2023 in Phoenix as we gear up for another day of talking with Dealers and Kyle is getting ready to be one of the guest judges for the Navicon competition. Today we talk about Honda’s latest earnings report. We also check in on the airtag we snuck in Shawn Fain’s Wranglers, as well as the biggest bump sticker we’ve ever seen. Honda Motor Co. is raising its full-year earnings forecast due to strong U.S. sales, a stable supply of semiconductors, and favorable foreign exchange rates, despite a slight softening in U.S. demand and lowered vehicle sales targets. Honda's Q2 profit rose by 31% due to higher vehicle sales and improved pricing. Stable semiconductor supply boosts production; no current supply issues reported. Honda to sell 25,000 fewer vehicles in North America than anticipated for the fiscal year ending March 2024. Operating profit jumped to 302.1 billion yen, with revenue up 17% and global sales increasing by 6.5%. Lowered full fiscal year unit-sales forecast due to weak demand in China, but an 11% increase over the previous year is still expected. Honda's North American deliveries surged by 40 percent to 385,000 vehicles, significantly contributing to the company's quarterly growth. Just when we thought it was over, UAW President Shawn Fain announced an aggressive push to organize non-union U.S. auto plants, leveraging new contracts with Detroit automakers and highlighting Toyota's recent wage hikes as a response to union efforts. After the UAW agreements with the Big 3, Toyota subsequently added a 9% wage increase and shortened timelines to top pay. "When we return to the bargaining table in 2028, it won’t just be with the Big Three, but with the Big Five or Big Six," Fain said. "We're going to pull out all stops. We're going to leverage every avenue we can and we're going to find creative ways to get to workers," Fain said. "We're going to employ everything we can to support workers and give them what they need." If you thought a $10,000 market adjustment bump during COVID was high, A Dodge dealership in Maryland, DARCARS, has set a staggering asking price of $386,321 for the limited edition Challenger Demon 170, which is significantly over its MSRP of $96,666. The window sticker add ons read: DARCARS Assurance 2,495 - Dealer Processing Fee $500 - Wheel Locks $195 - Adjusted Market Price - $250,000 </
Wed, November 08, 2023
Biden and Fain Date, AM Radio or Bust, GROK In Your Friend’s Tesla
Shoot us a Text. Welcome to Wednesday as we’re wheels up for Used Car Week, but first we’re talking about Joe Biden’s upcoming visit with Shawn Fein. We also talk about the ongoing battle over whether to keep AM radio in cars or not. Finally, we’ll visit with our new friend GROK again. Joe Biden is set to meet with UAW President Shawn Fain on Thursday to discuss Stellantis' reopening of an Illinois assembly plant in a show of commitment to U.S. manufacturing and job creation Biden had weighed in during the strike in favor of the union and called Fain after the contract was reached Stellantis plans a $3.2 billion investment in a new battery plant and a $1.5 billion investment in a mid-size truck factory in Illinois. The investments are part of a labor agreement adding 5,000 U.S. jobs by 2028, pending ratification. President Biden lauded the labor agreements, emphasizing their significance in strengthening the U.S. auto industry and expanding domestic manufacturing capabilities. Fain has yet to endorse Biden in his 2024 reelection bid A report from the Center for Automotive Research outlines the potential cost to automakers of maintaining AM radio functionality in electric vehicles due to electromagnetic interference, and it's A LOT. Costs to mitigate interference with AM radio in EVs could total as much as $3.8 billion by 2030. Technical solutions like shielding and filtering add costs and may affect vehicle weight and battery range and could add up to $70 in cost to every vehicle Legislative efforts are pushing to keep AM radio in new vehicles, citing its importance in emergencies. The automakers are pushing back…the broadcaster’s alliance wants to keep it… John Bozzella, CEO of the Alliance for Automotive Innovation, argues that mandating AM radio in EVs is unwarranted and would incur extra costs for consumers. Bozzella contrasts the necessity of mandated safety features like airbags and seat belts with the imposition of analog AM radio tuners, a move he says is unprecedented by the government…"The government has never gone there before," On the heels of revealing AI chatbot Grok, Elon Musk has announced that Tesla will integrate the AI into its vehicles. A "smaller quantized" version of Grok AI is reported to run natively in Tesla vehicles, utilizing the cars' local computing power for a seamless in-car user experience. Musk envisions Tesla vehic
Tue, November 07, 2023
Return of the Rebates, Farewell to the HEMI, Hello to GROK
Shoot us a Text. We’re tearing up and tearing it up this Tuesday as we talk about the return of cash rebates from a less than likely contender. We also help Stellantis say goodbye to the Hemi (kind of), as well as preparing a handshake for the new AI jock on the block…Grok. Amidst a notable deceleration in the EV market, automakers are adapting their sales strategies , reflecting a shift from a period of high demand to a more challenging landscape where incentives are becoming key to moving inventory. Ford has reduced the price of its new Mustang Mach-E SUV by $7,500 due to "competitive realities.". Ford is also offering a $7,500 rebate on top of the federal tax credit on some F-150 Lightning pickup trucks VW is advertising an ID.4 lease with no down payment. "I think there was a miscalculation about demand and how much EVs would be coveted,” observed Joseph Yoon, an analyst at Edmunds, pointing to a mismatch between the industry's expectations and the current consumer buying behavior. Ultimately, the discounts are a costly way to buoy demand, said Jeff Dyke, president of , a publicly held car retailer with dealerships around the U.S. “Is it sustainable forever? Absolutely not. They’re going to have to find a way to make these things cheaper,” Dyke said. 2025 will be the year the world will hear Scott Simons cry as Stellantis kisses the iconic HEMI goodbye. As the company is steering its light duty Ram trucks towards electrification. In the meantime, a new plug-in hybrid model, the Ramcharger, is set to enter the market as a transitional option for consumers hesitant to adopt fully electric vehicles. The company's strategic pivot includes replacing V-8 Hemi engines with six-cylinder "Hurricane" engines and older V-6 options in light-duty trucks. Basic HEMI produces 394hp. One version of the new Hurricane produces 540 Stellantis faces penalties for not meeting U.S. emissions standards, driving a shift to improve the fuel efficiency of Ram models. "Think of the cost per kilowatt-hour," Ram brand chief Tim Kuniskis stated, emphasizing the balance between affordability and performance in their upcoming electrified vehicles. Your savant level, overly direct, college roommate AI Chatbot has finally hit the scene as Elon Musk's new company, xAI, has launched a language model named Grok . Grok boasts a more unfiltered and witty approach to AI inter
Mon, November 06, 2023
GM Raises Salaries, Which OEMs Do Dealers Trust Most, Audi ♥s Subscriptions
Shoot us a Text. Today’s show features that new car smell as we enter the first full week of November. Today we’re talking about GM’s voluntary salary increases, a new Dealer survey revealing their level of trust in OEM’s, as well as another take on on-demand features built into cars. General Motors (GM) has announced a pay raise and improved benefits for its 43,500 U.S. salaried employees, following a tentative agreement with the United Auto Workers (UAW) union. GM's salaried employees will receive an average base pay increase of 3.5% in March 2024. The company will enhance its 401(k) match from 4% to 6% and improve certain medical and vision benefits. These changes follow a tentative agreement with the UAW, which covers about 46,000 employees and includes significant raises and richer benefits. "GM provides competitive compensation and benefits for salaried employees, benchmarked across industries," stated GM spokesperson Kevin Kelly. "Next year, GM will increase base pay and company matching for 401(k) plans, as well as offer enhanced health care benefits." A Dealer survey by Kerrigan Advisors reveals their trust levels of various OEM s. The annual dealer survey shows a shift in dealers' sentiment towards various car brands, with some expecting an increase and others a decline in franchise values. Ford perceived as the least trustworthy brand by nearly half of the dealers, with concerns over its EV/future retailing strategy. Toyota emerges as the most trustworthy brand, with 72% of dealers expressing high trust, attributed to its thoughtful EV strategy. A majority of dealers remain optimistic about their dealership values, with 52% expecting valuations to remain the same Changes in automaker strategies, particularly regarding over-the-air updates and agency models, have dealers divided on future profitability impacts. Erin Kerrigan, Managing Director of Kerrigan Advisors, stated, 'Dealers' trust in their manufacturer partners is crucial, especially when evaluating dealership value. Our survey reflects a dynamic shift in the industry, underscored by the strategic realignments towards evolving consumer demands and electric vehicle strategies.' Despite skepticism, Audi has announced plans to offer more 'on-demand' features in future models, according to a report by Autocar, insisting that the move is customer-driven rather than profit-oriented. Audi to introduce an array of 'on-demand' features, controllable via the Audi phone app, in
Sat, November 04, 2023
A Community Needed A Safe Space for Halloween... This Dealer Stepped Up
Shoot us a Text. Welcome to Saturday! Today, Head of Community Jordan Cox and Producer Nathan Southwick guest host the show. Head Writer Chris Reeves joins to talk about how DeNooyer Auto Group put on a Trunk or Treat with the help of their whole community. Submit your story of dealers making a positive impact in their communities here! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, November 03, 2023
Three Biggest Questions, Used Car Week, NAVIcon with Steve Greenfield
Shoot us a Text. It’s Friday, but we’re already looking forward to next week as Steve Greenfield joins the show for a preview of Used Car Week and the biggest questions facing the used car industry. Here are the 3 biggest questions facing the used car industry, according to Steve Greenfield Residual values of EVs The effect of the market on car auctions Negative equity in the used car market Kyle will be judging the NAVIcon Cup at Used Car Week Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, November 02, 2023
Toyota Steps Up, VinFast Gets Small, Walmart Goes After Surveys
Shoot us a Text. As we head into November, there is already a lot to be thankful for as we talk about Toyota voluntarily boosting production wages. We also talk about the potential introduction of sub 20k EV as well as WalMarts plan to ditch degree requirements and focus on actual skills for corporate positions. As substantial attention has been turned to the UAW strike and subsequent pay increases for workers, Toyota is voluntarily boosting pay for their non-union production workers as the automaker has announced a 9.2% wage increase for its nonunion production workers. Toyota raised the hourly wages for its U.S. manufacturing, distribution, and logistics employees to $34.80, effective Jan. 1. This increase is the third in a year, following a 25-cent raise to $31.86 in September. The wage boost is significant at 9.2%, especially considering the usual biannual wage adjustments by Toyota. Skilled trades employees will see their top wage rise to $43.20 an hour from $39.50 Wage progression time is halved from eight to four years, and paid time off is increased for all employees, including temporary ones. Chris Reynolds, Executive VP for Corporate Resources at Toyota Motor North America, emphasizes the company's ethos, "At Toyota, we take great pride in showing respect for people. We value our employees and their contributions, and we show it by offering robust compensation packages that we continually review to ensure that we remain competitive within the automotive industry." Vietnamese automaker, VinFast,is contemplating the introduction of the VF 3 minicar to the U.S. market at a potential price point under $20,000. At a mere 10.2 feet in length, this chunky two-door electric vehicle (EV) is designed to cater to the Vietnamese market but may appeal to budget-conscious American city dwellers. The VF 3 is described as both a car and a crossover, boasting 16-inch wheels and bold geometric design. The potential U.S. price point of the VF 3 might make it eligible for the $7,500 federal EV tax credit when leased. VinFast is transitioning to a hybrid retail model in the U.S., incorporating franchised dealerships. Duke Hale, an adviser to VinFast, shared insights from dealer meetings, "They liked the whole lineup but the VF 3, I would say, got an almost 100 percent response. They really liked the VF 3 and the reason is it's probably sub-$20,000." Walmart's five-star <a href='https://www.businessinsider.com/walmarts-5-star-checkout-survey-frustrates-customers-employees-2023-10?utm_medium=newsletter&utm_source=Sailthru&utm_campa
Wed, November 01, 2023
Not So Bad, Tesla’s Win In Court, Homeschooler Takeover
Shoot us a Text. It’s a new day in a new month as we talk about the potentially light residual effects of the strike on the industry. We also cover a big win for Tesla in court as well as a homeschooling trend that seems to have staying power. Show Notes with links: The UAW's simultaneous strike against the Big 3 initially stirred fears of colossal financial damage, but as the dust settles (maybe), early indicators show that the $2.9 billion loss seems more manageable than critical . The UAW's 146,000 members secured a significant 25% wage increase, cost-of-living allowances restoration, and additional benefits. Ford, facing an increase of $850 to $900 per car cost, along with Stellantis and GM, plans to find efficiencies to balance the escalated labor costs. Stellantis weathered the strike with over $3 billion in lost revenue but contained profit losses to about $800 million, outperforming GM and Ford. Investors initially panicked, slashing $40 billion from GM and Ford's market value, but S&P’s recent upgrade of Ford's credit rating shows a silver lining. Chris McNally, an analyst with Evercore ISI, optimistically noted, "We believe that GM should be able to offset most of the UAW-driven increased wage headwind." In a landmark decision, Tesla triumphed in the first U.S. trial concerning its Autopilot system's involvement in a fatal crash. The verdict, favoring Tesla, underscores a pivotal point: despite technological advancements, the responsibility for road safety ultimately rests with the driver. The case revolved around a 2019 incident where a Tesla Model 3 veered off the road, resulting in a fatality and severe injuries. The jury, after four days of deliberation, concluded 9-3 that there was no manufacturing defect in the vehicle. Tesla maintained that the driver was under the influence of alcohol, and it was unclear if Autopilot was active during the crash. Tesla stated, "The jury's conclusion was the right one," Homeschooling is experiencing a historic surge in the US . This trend transcends the common stereotypes of homeschooling, attracting a diverse set of families for a variety of reasons, ranging from dissatisfaction with traditional schooling to seeking a more value-aligned education for their children. Once considered a niche choice predominantly favored by religious families, homeschooling is now becoming a mainstream educational option across the nation 51% increase in the number of
Tue, October 31, 2023
And Now We Vote, EV Credit Ignorance, Giant Drone Deliveries
Shoot us a Text. It’s a no-so-spooky Tuesday as we talk about the final tentative agreement for the Big 3 that ends all striking for now. We also talk about the big gap in American’s awareness of EV tax credits, as well as a company using giant drones to deliver heavy loads. The triple threat has been neutralized …maybe, as the UAW and GM have reached a tentative contract, concluding the strike against the Detroit 3. The agreement promises significant wage hikes and other benefits for workers in line with the previous deals with Ford and Stellantis Picketing ended near midnight as the tentative contract doubles certain workers' pay immediately, with a 70% raise in starting wages by 2028. Veteran workers can anticipate about a 33% pay rise over the contract's term, reaching $42.95 per hour. Temporary workers with 90 days of experience will receive raises between 51% and 115%. GM agreed to abolish a lower pay scale for specific divisions, and salaried workers will get a wage increase akin to hourly workers. “We were relentless in our fight to win a record contract, and that is exactly what we accomplished.” - UAW President Shawn Fain. There is one more hurdle …ratification. Fain's aggressive tactics and promises, while effective in negotiations, might backfire during the ratification process as some of the deals don't meet the high expectations he set (e.g., no 32-hour workweek, no defined benefit pensions for all). Despite the Inflation Reduction Act offering up to $7,500 in federal tax credits for EV purchases, about 40% of Americans remain completely unaware of the subsidies A BlueLab Analytics survey found 40% of Americans are oblivious to the EV tax credits under the IRA. Despite the results, the survey shows that Hispanic Americans indicate the highest preference of any group for buying an EV in the future, while Black Americans show the lowest preference. Women are slightly less likely to be planning for an EV purchase and they are much less aware of the EV tax credits, as Axios reports. Offshore turbine company, Ørsted claims to be the first offshore wind firm globally to deploy autonomous giant drones for cargo delivery to turbines. The drones, weighing 128 pounds and having an 8.5-foot wingspan, are being tested at the UK's Hornsea 1 offshore wind farm. They can carry cargo up to 150 pounds
Mon, October 30, 2023
Two Down One To Go, The Humble Victory Lap, Reviews With Friends
Shoot us a Text. We have some catching up to do this Monday as we summarize UAW strike developments from the weekend. We also cover Toyota's Chairman comments on EV market's realities as well as Amazon's new "Consult-a-Friend" feature. Two down, one to go. On Saturday UAW announced a tentative agreement with Stellantis which mirrors the deal with Ford and promises the revival of an Illinois assembly plant closed earlier this year, restoring 1,200 jobs. “On Day 44 of our Stand Up Strike, I am honored to announce that our union is again victorious. Once again, we’ve achieved just weeks ago what we were told was impossible,” - Shawn Fain, UAW President. The Ford deal promises a 25% pay hike over four years, the reintroduction of cost-of-living adjustments, and assures top-tier salaries to newcomers post their initial three years. Stellantis echoed the 25% salary increment, has consented to restart its dormant Belvidere Assembly facility, and has pledged to direct $19 billion towards fresh U.S. ventures "We look forward to welcoming our 43,000 employees back to work and resuming operations," Stellantis said on Saturday. The strike against GM has been expanded, targeting the Spring Hill, Tennessee, engine plant. With a similar wage offer as Ford and Stellantis on the table, the primary negotiation challenges with GM revolve around retirement benefits and matters concerning temporary workers Fourteen year CEO and current Toyota Chairman, Akio Toyoda said "There are many ways to climb the mountain that is achieving carbon neutrality," at the Japan Auto Show as he emphasized that EVs they might not be the sole solution to carbon emissions as the auto industry once believed Toyota has consistently championed the potential of hybrid gasoline-electric cars as a bridging technology as a major lull in EV demand takes hold of the market The Big 3 are pulling back in big ways, and GM and Honda recently dissolved an EV partnership Meanwhile, Toyota says it is very close to a breakthrough in solid state battery technology which will allow them to produce batteries that get 700-1000 miles of range on a similar size battery that is currently being produced. Amazon’s new integration with their shopping app dives deeper into social shopping with its latest f
Sat, October 28, 2023
Costumes, Coats and a Dealer Who Cares
Shoot us a Text. Joining us on this Saturday are writers Chris Reeves and Kristi Canada to talk about a dealer group who reached out to us to share the unique ways they are caring for their community, by making sure the kiddos stay warm . Have an inspiring story you want us to know about? Submit it here. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, October 27, 2023
UAW Applies Peer Pressure, Ford’s EV Investment Drop, Hertz Takes A Step Back
Shoot us a Text. It’s Friday and we’re talking about the new pressure on GM and Stellantis to reach a deal with the UAW. We’re also covering the reality check and big step back from EV rollouts from both Ford and Hertz. The UAW's negotiation with General Motors takes a new turn as the union proposes a revised contract offer. This move comes on the heels of a promising tentative agreement with Ford, setting the stage for potential resolutions in the ongoing labor disputes. The recent tentative deal with Ford promises a 25% wage increase over the next four years and the reintroduction of cost-of-living adjustments. UAW President Shawn Fain said, "Ending the strike at Ford would pressure GM and Stellantis to also reach a deal." as he hopes to put pressure on both GM and Stellantis to finalize their own agreements. Both GM and Stellantis expressed intentions to reach a swift tentative agreement with UAW, echoing their desire to resolve the labor standoffs. Current GM and Stellantis offers suggest a wage rise of 23%, pushing top hourly wages above $40 by the contract's conclusion. Ford is making significant adjustments to its EV strategy and deferring around $12 billion in projected investments intended for new EV manufacturing facilities, noting a shift in North American consumer behavior and a reduced willingness to pay a premium for electric vehicles. This decision stems from the slower-than-anticipated growth rate of EV sales, despite the overall increase in the industry. CFO John Lawler said, “"The customer is going to decide what the volumes are. Ford is able to balance production of gas, hybrid and electric vehicles to match the speed of EV adoption in a way that others can't." He continued by highlighting that Ford isn't retracting from its upcoming EV models but will reconsider the speed at which they increase manufacturing capacity. Ford's EV business unit, Ford Model e, reported a $1.3 billion operating loss in the third quarter, doubling its loss from the previous year, even with a 26% revenue hike Following lower than expected earnings, Hertz, is also rethinking their once enthusiastic shift towards EVs due to including higher repair expenses and a decrease in EV resale values, primarily influenced by Tesla's pricing strategies and parts availability. Hertz initially aimed to
Thu, October 26, 2023
UAW & Ford Now Friends, VinFast Recruits Dealers, Amazon Loves Pets
Shoot us a Text. The strike is over! … sort of. On this Thursday, we'll talk about Ford’s tentative deal with the UAW as well as VinFast’s ambitious plans to recruit dealers nationwide. Plus, is Amazon about to give telehealth to your pets? Show Notes with links: Could the UAW strike with Ford be over? Just two weeks after the UAW sent 8700 workers home at a Ford plant in Kentucky, the two sides have reached an historic tentative agreement , sending almost 20k workers back to their jobs. The tentative deal includes immediate 11% raises for workers and a total of 25% raises over the next four years. It also reinstates cost-of-living adjustments and offers a three-year path to top wages. UAW Vice President Chuck Browning stated that the new agreement holds more value in each year than the entire 2019 deal. Workers on a lower-tier pay scale could see 85% raises upon ratification, and temporary workers could get 150% raises over the contract's duration. The strike had significant financial implications for Ford, costing the company an estimated $888 million. Vietnamese EV maker, VinFast Auto, is significantly changing up its U.S. sales approach by adding actual dealerships with its direct-sales model. This strategic shift is in line with the company's ambitious expansion plans and launch of new models The company has recruited 27 dealers across 12 states, adopting a hybrid sales model to augment its direct sales, primarily active in California, with a planned total of 100 open points nationwide "You can't just wave a magic wand and put in a hundred dealers. The paperwork, the state filings, all that stuff, it's going to take some time,” said industry veteran Duke Hale who is an adviser to VinFast. Hale said there would likely be three of four phases Despite the EV market challenges, heightened by Tesla's price cuts, VinFast remains optimistic, leveraging third-party dealerships for a more efficient capital expansion across global markets. VinFast aims for a presence in 50 global markets by the end of 2024, with North America, particularly Canada, witnessing a sales uptick. If leggings and robotic vacuums aren’t enough, become a vet . Amazon is looking to take a chunk out of the $137 billion pet market and compete with Walmart+ vet service offerings. The U.S. pet market is expected to grow to $200 billion by the end of the decade, driven largely by pet healthcare. Companies like Chewy and Petco are already e
Wed, October 25, 2023
UAW Goes Ham, Colorado's Pedestrian Dilemma, EVs Under $400
Shoot us a Text. Wednesday and wheels up for us as we delve deep into Colorado's controversial proposal to charge owners of large, pedestrian-unfriendly vehicles. We also unpack the surge of affordable EV leases under $400 a month and the impact of the expanded UAW strike on GM and Stellantis. Not long after GM announced their Q3 earnings the UAW has initiated a strike at General Motors' high-profit SUV plant in Texas, impacting the production of key models and deepening the financial blow to the Detroit 3 5,000 workers at GM's Arlington Assembly in Texas were ordered to strike by UAW President Shawn Fain. This plant manufactures the Chevrolet Tahoe, Suburban, GMC Yukon, and Cadillac Escalade. UAW President Shawn Fain said "Another record quarter, another record year. As we've said for months, record profits equal record contracts. It's time GM workers, and the whole working class, get their fair share." GM responded by expressing disappointment in the UAW's decision, highlighting that they had increased their previous proposal's value to the union by 25% just last week. The UAW's strike expansion also affected Stellantis' profitable Sterling Heights Assembly in Michigan yesterday, which produces Ram 1500 pickups. A proposed bill in Colorado seeks to introduce a “vulnerable road user protection registration fee” for heavier vehicles, with the intent to funnel the revenue into pedestrian and bike safety projects. The fee aims to generate around $20 million annually. However, even a 9,000-lb vehicle like the Hummer EV would only be subjected to an extra fee of $29.90 each year. The fee will only be charged Colorado’s 12 most populated counties, where most pedestrian and bicycle accidents occur. State Senator Lisa Cutter said that “Data shows us that higher vehicle weights directly correlate with vulnerable road user deaths. It just makes sense to tie funding to that." Electric vehicles won't be exemptrom the registration fee. In 2024, Washington D.C. will raise registration fees based on weight: from $155 to $500 for over 6k lbs, from $155 to $250 for over 5k lbs, and from $115 to $175 for 3500-5k lbs A range of automakers are now offering electric vehicle leases for under $400 a month , making EVs more accessible to the average consumer and ramping up competition in the market.
Tue, October 24, 2023
Chevron's Hefty Hess Handshake, GM's Guidance Gone, Subprime Slide Surges
Shoot us a Text. Happy Tuesday to our automotive community as we unpack GM's financial turbulence amidst the UAW strikes. We also dive into the alarming rise in subprime car loan delinquencies as well as Chevron's big move in acquiring Hess Corp. GM has pulled back its 2023 profit and EV production projections . The ongoing UAW strikes are costing the automaker a hefty $200 million each week this October. GM's Q3 net income dropped by 7.3%, standing at $3.06 billion, though revenues rose by 5.4% to reach $44.1 billion. UAW strikes have cost GM $800 million combined for Q3 and Q4 thus far. Amidst the cautious market environment, GM is reevaluating its EV strategy, prioritizing profit margins over strict sales volume targets. GM is stepping away from its aim to produce 400,000 EVs from 2022 to mid-2024. The new primary focus is to reach 1 million EVs by the end of 2025. Subprime borrowers are increasingly defaulting on auto loans, marking the highest delinquency rates in nearly 30 years. Economic challenges, including interest rate hikes and an uncertain job market, have made newer loans more burdensome for many, signaling distress in consumer spending patterns. September's delinquency rate for subprime auto loans hit 6.11%, the highest since 1994, as per Fitch Ratings. Factors like higher car prices, elevated borrowing costs, and Federal Reserve's stance on rates contribute to the issue. Repo rates are on the rise, with Cox Automotive projecting 1.5 million vehicle seizures this year. Borrowers face high interest rates based on credit scores, with some rates reaching 21.38% for used cars. Economic pressures have also led to challenges in the job market, with many struggling to meet auto loan payments. US oil producer Hess Corp, originally founded by Leon Hess , has been acquired by Chevron Corp in a deal spearheaded by Leon's son, John Hess. The all-stock transaction values Hess at $171 per share. Post-acquisition, John Hess, the longstanding CEO of Hess Corp, is slated to join Chevron's board and has expressed intentions to retain the family's stake in the company. Hess Corp's inception traces back to Leon Hess's buying a secondhand truck during the depression and delivering fuel oil during the depression. The company's current sale to Chevron values the Hess family's stake at approximately $5 billion. Once the deal is closed, John Hess, Leon Hess’s son, who ha
Mon, October 23, 2023
Substantial Strike Movement, EV’s Election Pitch, Bullet-Ridden Tesla
Shoot us a Text. It’s a great week to be in the car biz as we discuss the latest movement in the UAW negotiations. We also take a look at the rising political rhetoric around EV’s, before we weigh in on whether or not the Cybertruck is actually ‘bulletproof’. In their seventh offer since the beginning of the month, GM is claiming 'substantial movement' in its latest offer to UAW members, joining Stellantis in proposing a 23% wage hike. As the strike enters its sixth week, both automakers aim for over $40 per hour wages by 2027, reflecting industry shifts and pressures amid ongoing negotiations. This amount matches what Ford has already proposed earlier last week. UAW President Shawn Fain seemed to agree, saying the offer was “serious movement” as he reminded everyone that he could expand the strike at any moment. ”The bottom line is we’ve got cards left to play, and they’ve got money left to spend,” and continued that the UAW is after “not just a good contract, not just a record contract, but a contract that turns the tide.” Stating that this is the most significant offer ever proposed by GM to the UAW, the company emphasized their recognition of team members' dedication and contributions. "It's time to conclude negotiations, bring our team back, and focus on ensuring GM's success, securing quality U.S. jobs for many future decades.” Fain also took the opportunity to respond to Bill Ford’s comments last week regarding Ford and the UAW banding together to beat ‘non-union’ automakers by saying, “"The days of the UAW and Ford being a team to fight other companies are over.” The retail auto industry has found itself in the center of culture once again as EV adoption and government incentives have become a political campaigning point. Amid rising EV prices and labor strikes, President Biden's pro-EV stance faces challenges from Republican contenders, further polarizing the electric vehicle debate. In the U.S., for every five Democrats owning an EV, there are two Republicans, highlighting a political and ideological divide in electric vehicle adoption. The demographics of EV ownership also reveal an economic disparity: the median household income of EV buyers is $186,000, up from the typical new car buyers, $122k That number is up recently from the $90k mark it had been for decades Late last week, a post on the popular "Tesla owners silicon valley" account showcased Tesla's <a href='https://electrek.co/2023/10/20/tesla-shot-tommy-g
Sat, October 21, 2023
One Dealer's VERY Spooky Carwash Idea
Shoot us a Text. Today we are in the studio with our writers, Chris and Kristi to talk about one Arkansas Dealers's idea to turn a carwash into an experience that is attracting 1000s! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, October 20, 2023
Are We Getting Close To A Deal, Toyota Chooses Tesla, “Cars” Crocs
Shoot us a Text. It’s Friday y'all and we’re wondering if the UAW is getting close to a tentative deal with GM. We’re also talking about Toyota’s big charging standard shift, as well as a new wearable tow truck from Crocs We’re not getting excited just yet, but there seems to be a glimmer of hope as Mike Booth, vice president of the union's GM department, commented, “All the pieces are there, we just have to glue it together.” at a rally on Thursday. The company and union are in discussions about pensions and healthcare benefits for retirees. Booth mentioned the union's desire for a secure pension, but they're willing to discuss terms provided there's a robust plan to safeguard members. "People might potentially have a comfortable retirement with a set contribution plan," he added. Meanwhile, Stellantis, Ford, and GM, are laying off 270 more workers in Michigan, Ohio, and Indiana due to the UAW's ongoing strike. Stellantis will idle 100 UAW members at its Toledo plant. GM announced 20 layoffs across Ohio and Indiana, while Ford will lay off 150 at its Sterling Axle Plant. Affected workers might not receive unemployment benefits, but the union pledges $500 weekly from its strike fund. Ford has the most laid off workers at 2700, GM is at 2350 and Stellantis 1520 The last domino may have fallen as Toyota announced yesterday its decision to adopt Tesla's electric-vehicle charging technology from 2025. Joining the ranks of Ford, GM, and Nissan, Toyota's move signals a major industry shift towards the NACS standard, potentially sidelining the rival Combined Charging System CCS for good Starting 2025 NACS ports will be featured in select Toyota and Lexus EVs, including an upcoming Toyota crossover manufactured in Kentucky. Current Toyota and Lexus vehicle owners using the CCS system will receive adapters for NACS charging compatibility in 2025. What's better than a Pixar film named "Cars"? How about footwear inspired by its beloved characters? Crocs is driving into the spotlight once again, unveiling a <a href='https://link.mail.beehiiv.com/ss/c/gM5eLZrakVhteH8MpYhIgaLPjdzA7KDtSjtgzRKH7iq2MbuwD20Jgo3SbUO95whW_ZoC7PGZZY3UL_gznWENiJbju5YeaKNLFpj_UTBkkfgE9ufKqBn5aZK_68-tx2nK2htyOUZhEJ7deoo1sMwcRyiVHMYX2SPoVFWBhyCUc4CGAyt7CY3TiB-xvJ_R6xbeFSqUJYvtby10J72UM1CM-yNlt7-PvzuqYiXheGnECgEamgdRfqK_E8ezE6UggAGf/40l/zf90X_ydSFeitW2FKFNh1Q/h26/2qTs8Ya82sZnP7w5GGxH6Jqd3tqn
Thu, October 19, 2023
Ford Shakes It Up, Tesla’s Struggle Bus, A Case For Younger Execs
Shoot us a Text. It’s Thursday and we’re burning around the track this week as we talk about the leadership shake up at Ford. We also review Tesla’s earnings call from yesterday, as well as talk about some new data on the effectiveness of people of different ages on exec teams. There was a unique lull in the UAW action yesterday Meanwhile, Ford announced a management reshuffle yesterday, promoting Kumar Galhotra from combustion vehicle unit chief to chief operating officer. Kumar Galhotra, who once led the Ford Blue unit producing gas and hybrid vehicles, will now oversee the company's global industrial system. Andrew Frick, who managed Ford Blue's sales, distribution, trucks, SUVs, enthusiast vehicles, and operations in Mexico and Canada, will replace Galhotra at the unit. Tesla's third-quarter earnings call revealed a more cautious tone due to global economic concerns and high interest rates. CEO Elon Musk also announced the Cybertruck's delivery date, while also reflecting on management changes and the company's growth amidst competitive pressures. Musk disclosed the company's plans to establish a factory in Mexico aimed at producing affordable vehicles. However, the timeline for this project isn't aggressive due to worries about the state of the global economy. Musk mentioned, "In Mexico, we're laying the ground to begin construction, but I think we want to just get a sense of what the global economy is like before we go full tilt." He further commented that if interest rates decrease, they might accelerate the plans for the Mexico plant. Tesla's Cybertruck, with over 1 million reservations, is set for its inaugural delivery on November 30th at the Austin, Texas Gigafactory, where its pricing will be unveiled. Musk emphasized the production challenges, aiming for a target of a quarter million units annually after 2024. Tesla stock was down 3% 40 minutes into the call While ageism has been a recent topic of discussion , some experts believe younger executive leadership is essential for promoting innovation and addressing long-term challenges. Martin Reeves of Boston Consulting Group states older leaders might rely on outdated strategies and prioritize short-term gains, while younger professionals may be open to new, long-term strategies but lack the authority to implement them. The average age of Fortune 500 CEOs is 57.7, with factors like prolonged life expectancy and pandemic-induced challenges
Wed, October 18, 2023
Stellantis Says Goodbye To CES, NADA Chooses Next Vice Chair, World’s First EVTOL Approval for Passengers
Shoot us a Text. Welcome to Wednesday as we talk about Stellantis not-so-subtle exit from CES. We also cover NADA’s next Vice Chair, as well as the world's first EVTOL approved to carry passengers. Show Notes with links: Stellantis has withdrawn from the 2024 CES tech expo , citing the ongoing UAW strike and the need for cost-saving measures. The company issued a statement saying it is "executing comprehensive countermeasures to mitigate financial impacts and preserve capital, and will continue to demonstrate its transformation into a mobility tech company through other means." The automaker has used the world's largest technology show to unveil electric vehicle concepts such as the Ram 1500 Revolution pickup and Chrysler Airflow crossover. The National Automobile Dealers Association (NADA) has elected Tom Castriota , the owner of Castriota Chevrolet in Hudson, Fla., as its vice chairman for 2024, positioning him as the probable chairman for 2025. Castriota was grateful for the opportunity, saying “I have a sincere desire to do the hard work and serve as the voice of the dealer… Working hand-in-hand towards a shared vision is as important as the outcomes we want to achieve." This year’s vice chairman, Gary Gilchrist, president of Gilchrist Chevrolet-Buick-GMC in Tacoma, Wash, was elected as the 2024 Chairman, and is looking forward, saying "We will remain committed in our quest to embrace change. Remember, it is a force for positive transformation." The NADA board also elected Robert Vail, president of Vail Buick-GMC, as secretary and Kirt Frye, president of Sunnyside Automotive Group, as treasurer. Castriota is 69 years old, Gilchrist is 70 and this year’s chairman Geoffrey Pohanka is 65. China's EHang has received a "Type Certificate" from the Civil Aviation Administration of China, greenlighting its commercial passenger services . This landmark approval positions the EH216-S as the world's inaugural fully certified electric vertical takeoff and landing air taxi to carry actual passengers. Certification required assessments of over 500 parameters, such as material performance, flame resistance, software simulation, flight performance, and more. The EH216-S was subjected to over 40,000 test flights, ensuring its safety, performance, functionality, and reliability across 65 major categories and 450 individual tests. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back ema
Tue, October 17, 2023
A Giant Steps On The Strike Field, Hawaii Curbs Cat Theft, Netflix Follows Disney
Shoot us a Text. It’s Tuesday and we’re all in on the ups and downs of the day as we talk about Bill Ford’s entry to the UAW strike conversation. We also talk about Hawaii’s very effective campaign to curb catalytic converter theft, as well as the new Netflix experience centers that take a page out of Disney’s playbook A new player has stepped out of the locker room in the ongoing UAW strike negotiations yesterday, as Bill Ford, Executive Chair of Ford Motor Co., publicly urged UAW leaders to end their month-long strike. Bill Ford has participated in every union negotiation since 1982 and said he is the most “pro-union leader in the industry.” Addressing the press from Ford’s historic Rouge Complex in Dearborn, Mich, Ford said, "Choosing the right path is not just about Ford's future and our ability to compete. This is about the future of the American automobile industry. Toyota, Honda, Tesla and others are loving this strike because they know the longer it goes on, the better it is for them. They will win, and all of us will lose." UAW President Shawn Fain was quick to respond,, ““Bill Ford knows exactly how to settle this strike. ... He should call up Jim Farley, tell him to stop playing games and get a deal done. It's not the UAW and Ford against foreign automakers. It's autoworkers everywhere against corporate greed. If Ford wants to be the all-American auto company, they can pay all-American wages and benefits. Workers at Tesla, Toyota, Honda, and others are not the enemy — they're the UAW members of the future." As a side note, he has recently been photographed wearing a shirt that says, “Eat the rich.” Hawaii has seen a significant reduction in catalytic converter thefts after implementing a law that regulates their sale. A combination of legislation and practical implementation has led to a stark drop in thefts over the last year. Catalytic converters, which can fetch up to $1,500 at scrapyards, are commonly stolen in many states and now, Hawaii's law requires individuals selling catalytic converters to present photo ID and sign a declaration that the part wasn't stolen. Mark Yamauchi, the owner of Yama’s Auto Care in Hawaii, commented on the significant decline in catalytic converter thefts following the implementation of new laws in the state. He stated, “I did maybe a couple this year. Before, I would do at least two or three a month.” Thefts dropped from over 1,600 in 2022 to just 119 in 2023. Following in the footsteps of entertainment giants like Disney, <a hr
Mon, October 16, 2023
UNIFOR Ratifies, UAW Is Quiet, Ford Reacts To EV Demand Drop, New Collar Workers
Shoot us a Text. Welcome to another amazing week in Retail Automotive. Today we discuss the weekend happenings in the ongoing strikes in Detroit and Canada. We also talk about the big changes in EV demand, as well as WalMarts approach to finding and investing in talent. Show Notes with links: While Canadian union UNIFOR ratifies the GM deal by over 80% getting factory workers back to work, all is quiet on the UAW front over the weekend. Is it possible that no news is good news? After a brief 12 hour strike, a deal ensuring a nearly 20% wage increases for longtime workers over a three-year period, along with bonuses and other benefits has been ratified by the Canadian union. Union President, Lana Payne said at a press conference, “This agreement reflects true collective bargaining. Our goal was to bring more fairness and equity to auto workplaces and to lift everyone up. We did that.” Meanwhile, there have been no new strikes or moves announced by the UAW since Friday since Ford announced they were at the end of their bargaining rope. As of last week, over 39% of parts suppliers to the industry have said they have laid off workers as a result of the ongoing dispute and say that number could reach as high as 70% A pair of Wall Street Journal articles over the weekend are highlighting the ongoing struggle to separate the EV hype from actual consumer demand as a leaked internal memo may be revealing the reality of a significant drop in Ford F150 Lightning orders. While EV sales rose by 51% this year, the rate has decelerated and inventories are accumulating. Automakers are adjusting expectations, with some shifting focus to hybrids. Initial EV enthusiasts have made purchases, leaving a more cautious buyer base. This slowdown contrasts last year's demand surge. “It doesn’t take a rocket scientist to figure out that our sales for the Lightning have tanked,” a UAW official wrote in a leaked memo, which was viewed by The Wall Street Journal. Ford is considering reducing shifts at its F-150 Lightning pickup plant due to declining sales after an initially strong performance. The electric truck's sales have recently dropped, with a 45.8% decrease in U.S. vehicle sales in the third quarter. Production had halted during the summer for a six-week expansion, affecting deliveries. Retail behemoth Wal Mart is <a href='https://retailwire.com/discussion/will-looking-at-skills-rather-than-just-degrees-help-walm
Fri, October 13, 2023
Top Minority Purchased Vehicles, Ford Reaches its Limit, Increase In Tenn. Battery Plant Wages
Shoot us a Text. We are still in Miami for a few more moments as NAMAD wrapped up yesterday evening. We are carrying the energy from the event right into Friday as we recap the DVL awards and check in on what is up in Ford’s world. Show Notes with links: "We have reached our limit," Kumar Galhotra, president of Ford Blue said to reporters on Thursday. He continued, "We've actually stretched ourselves to get to this point. … We're open to moving some money around within the deal that might fit the union's needs better. But broadly speaking, from an overall cost of the deal perspective, yes, we're there." Despite raises of 23% for hourly workers and a $21 starting wage for temps, the UAW expanded its strike, targeting Ford's Kentucky Truck Plant late Wednesday The ongoing strike could impact Ford's $25 billion annual revenue from the plant and affect over 100,000 workers. Negotiations continue, with UAW President Shawn Fain set to provide an update on Friday. BlueOval SK, a collaboration between Ford and SK On, has announced wage increases at their upcoming Tennessee and Kentucky battery plants, with potential earnings reaching up to $37.50 an hour This wage revision aims to be more competitive with the current market, as stated by BlueOval SK's human resources director Neva McGruder Burke. The wage range for their plants in Stanton, Tenn., and Glendale, Ky., has increased from $21-$29 to $21-$37.50. Hourly workers are eligible for pay increases every six months until they reach top wages. Additional benefits for hourly workers include up to 5% annual bonuses, affordable medical premiums, 401(k) matches, vehicle discounts, and vision/dental insurance. The 2023 Diversity Volume Leadership Awards celebrated the manufacturers being attentive to minority vehicle buyers and outshining rivals. Marc Bland and Damon Lester founded the DVLs a decade ago to emphasize the importance of diverse consumers in the auto industry. The awards theme, "The Future Majority," reflects the U.S. Census prediction of minorities becoming the majority by 2045. 22 brands were honored this year across all vehicle segments, chosen based on US Census and S&P Global Mobility data, showcasing the significance of diversity in the automotive sector. The winner of the most coveted award of the evening, The Top Overall Future Majority Vehicle, went to the Toyota RAV4 (racking up To
Thu, October 12, 2023
LIVE at the NAMAD Conference in Miami, Ford Loses Kentucky Truck Plant, Gigapress Use Is Growing
Shoot us a Text. It’s Thursday and Paul and Kyle are live on the ground in Miami Florida for the annual NAMAD Members Meeting. We grab new president Perry Watson IV for a quick chat, then also talk about the latest strike target, as well as the growing use of gigapresses in manufacturing as other OEM’s take a page out of Tesla’s playbook. Show Notes with links: “You just lost Kentucky Truck Plant ”. Those were the final words of Wednesday night's negotiation meeting between UAW and Ford negotiating teams which included UAW President Shawn Fein. According to those close to the matter, the UAW informed Ford that they wanted to see a new counter offer by Ford on economics by 5pm. When they met and Ford didn’t have an updated offer, Fein stood up and said, “If this is all you have for us, our members’ lives and my handshake are worth more than this. This just cost you the Kentucky Truck Plant.” Ford labeled the union's decision as "grossly irresponsible" and mentioned they had already provided an "outstanding offer". The company also indicated that the strike would jeopardize many other jobs and facilities. Ford's Super Duty truck line holds immense significance for the company. The vehicle line alone generates more revenue than major corporations like Southwest Airlines, Marriott International, and Nordstrom did in 2021. It also accounts for over half of the market in commercial segments, including utility, mining, construction, and emergency response vehicles. With the addition of this plant, there are now over 34k workers on strike Italian aluminum casting machine maker, IDRA, known for supplying Tesla's innovative 'gigapresses', has expanded its customer base to include Ford and Hyundai. As carmakers increasingly explore this advanced manufacturing technique, IDRA is also nearing a significant deal with a premium European automaker, signaling a shift in vehicle production methods. Gigapresses create larger vehicle parts, streamlining production by reducing assembly steps. This enhances efficiency, cuts labor costs, and potentially improves structural integrity by minimizing joints and seams. A 'gigapress 6,100' with Ford's branding and IDRA's largest press, the 9,000, are being tested, with the latter set to be shipped to Hyundai for R&D. IDRA has already shipped 14 presses to Tesla, including two 9,000 ones for Tesla's large cybertruck production at its Austin plant, Texas, according to sources and posts by Tesla on social media. Six gigapresses are now emerging as the standard for an
Wed, October 11, 2023
Headed to NAMAD, A Throwback, And Intentionality
Shoot us a Text. We’re wheels up to NAMAD on this hump day, and are excited for a couple of days with some of our favorite people! We spend some time remembering last year’s NAMAD conference through an interview with Brian Armstead, and talk about the intentionality needed to reach people who aren’t like you. Watch for more of our NAMAD coverage over the next several days and weeks! We’ll be recording interviews and releasing them on the In The Dirt podcast. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, October 10, 2023
Heat Map for UAW Strike, Lithia’s Newest Adventure, Disney’s Blunder in AI Imagery
Shoot us a Text. We’re coming in HOT on Tuesday as Automotive News releases an interactive heat map showing the UAW strike across the US. Lithia Motors shows progress and intends to not start a bidding war for possible Pendragon acquisition. In the ever expanding gray area of generative AI, Disney may have crossed a line by using AI generated images within a promo for their Disney+ series ‘Loki.’ Thanks to Automotive News, we now can see how the UAW strike is impacting different areas of the US and what plants and supplies are being impacted with both striking workers and layoffs. There are only a few plants that currently have over 1000 workers striking, with most facilities seeing less than 100 workers striking. Offer updates show the gap between UAW demands and the OEM proposals, including generous PTO and holiday inclusions. Stark difference in hourly labor costs between the big 3 and Tesla ($63-$67/hour currently compared to $45-50/hour at Tesla currently) Seemingly direct correlation between combined market share and hourly labor costs since 1999 Lithia Motors Inc. has raised its offer to acquire Pendragon's dealership and fleet businesses to $482 million, amid a competitive bidding environment involving multiple auto retailers. Lithia Motors' initial offer for Pendragon was $350 million, which has now increased to $482 million. Pendragon previously received a $544 million acquisition proposal from AutoNation Inc. As part of the Lithia deal, Pendragon's DMS Pinewood will morph into Pinewood Technologies, with Lithia owning about a sixth of it. Lithia already operates around 40 dealerships in the U.K. and anticipates rolling out the Pinewood DMS to other major retailers there. David Whiston, analyst with Morningstar, noted, "There could be a lot more value long term for Pendragon shareholders by going with the Lithia deal versus the immediate cash payout to selling to AutoNation." AI may be making it into large creative company operations in an unwanted fashion as the jury is still out on whether Disney crossed the line with generative AI to create a ‘Loki’ poster. Characteristics like randomly placed squiggly lines and awkward human shapes have led people to believe that generative AI has been used. The most concerning piece is the background image, that looks to be taken from shuttersto
Mon, October 09, 2023
Surprise Strike Point, 72 Hours for $7500, Chick-Fil-A Slow But Still Great
Shoot us a Text. As the fall temps start to settle in, we realize how much we’re going to miss that subtle tailpipe fog on a 50 degree morning if the EVs take over. We’re still catching you up on the UAW strike as well as a new update on the speed of funding EV tax credits from the Fed. We’re also not surprised that slow doesn’t equal bad in Chick-fil-a drive thrus. As the United Auto Workers' strike enters its fourth week , the focus of the negotiations extends beyond just wages or benefits. UAW President Shawn Fain has opted to forgo additional walkouts, signaling potential progress in the discussions with the Detroit Big 3 automakers. On Friday, UAW President Shawn Fain commented on the recent developments, saying, "We had a major breakthrough with GM over compensation for workers at electric vehicle battery plants. GM has agreed to include these battery plants under its national contract.” Until recently, the UAW's core demands didn't explicitly list battery factories for unionization guarantees, highlighting a shift in priorities as the auto industry evolves. This surprise move by GM puts pressure on the other automakers Meanwhile, the Big 3 have maintained their October incentives, signaling optimism about the ongoing strike. Tyson Jominy, J.D. Power data and analytics vice president, said Monday about the presence of incentives "We're not in the room. We can't hear how the negotiations are going. But, as a sign, it just says that [it] seems like there's an expectation that the inventory on hand is sufficient for current demand levels." U.S. car dealers offering federal tax credits on new and used EV purchases can anticipate a 72-hour reimbursement from 2024, says the U.S. Treasury Department. This announcement follows new guidelines set by the Treasury and IRS, addressing dealers' concerns on the smooth implementation and swift government payback. Starting in 2024, eligible EV buyers can transfer these credits to dealers for use as a down payment. Dealers can register on the IRS Energy Credits Online portal this month. By January 1, registered dealers can submit EV sales data electronically and receive payments for transferred credits. This portal also facilitates time-of-sale reports and credit transfers Despite having the <a href='https://www.businessinsider.com/chick-f
Fri, October 06, 2023
Stock is OK, Toyota is Overhauling, and BMW is Fortniting
Shoot us a Text. Friday is upon us and the week has been full of post ASOTU CON energy. Thanks for all the feedback we have gotten from the community. Today we are talking about new car inventory levels, Toyota changing up its game, and BWM gaming. New data reveals that the ongoing UAW strike against Detroit 3 (General Motors, Ford, and Stellantis) has yet to significantly impact U.S. inventory levels of the automakers. General Motors recently reported having 442,586 vehicles either in stock or in transit as of September 30, marking a 3.4% increase from midyear and a 23% rise year-on-year. Ford announced its inventory for September 30 as 424,000 vehicles, equivalent to a 67 days' supply. "Inventory levels remain relatively stable, and, with the exception of some GM models, Detroit automakers have ample inventory for now to keep them operating through the coming month," - Charlie Chesbrough. Cox Automotive's data shows that the total U.S. supply of unsold new vehicles is at 2.21 million, the highest since spring 2021, yet 35% less than pre-pandemic levels in 2019. Toyota is radically overhauling its production system to launch a new fleet of EVs by 2026. This ambitious shift includes breakthrough digital tools, giga-casting techniques, and advanced battery tech, aiming to outpace rivals like Tesla. The new approach includes: Cars autonomously navigating through plants, hyper automated factories with giga-casting techniques, reduced workforce due to advanced automation. Toyota offered a rare tour of its sites over two days in September. Akihisa Shirao from Toyota's BEV Factory expressed hopes of outpacing Tesla in the EV race. "We have been late in starting the progress, but we hope to leapfrog ahead of Tesla this way," Some of the most impressive technology includes a self propelled assembly line in which battery-powered cars drive themselves from station to station. BMW’s new electric crossover, the iX2, is coming in just over a week, but you start configuring the car right now in Fortnite, specifically BMW’s homebrew Fortnite island, Hypnopolis. Fortnite has branched out from its Battle Royale mode, adding a Creative mode where users can create their own Fortnite experiences. Hypnopolis is one of those experiences, seemingly created by BMW without any partnership or endorsement from Fornite and its owner Epic Games. Through a gamified experience, the iX2 is unlocked and able to be recolored, fitted with new whe
Thu, October 05, 2023
Parts Suppliers Pinched, Public Distrust of Autonomy, Tesla Semi’s New Record
Shoot us a Text. We’re flying into this Thursday as we review the challenging effects the UAW strike is having on parts suppliers. We also review a new study about public trust in autonomy, as well as a new record set by a Tesla Semi Truck. Due to the ongoing UAW strike against Detroit 3, nearly 30% of suppliers have initiated layoffs, with this number expected to surpass 60% by mid-October, reveals a MEMA (Motor & Equipment Manufacturers Association) survey. The strike that started on September 15, has significantly impacted the auto supply chain, amplifying financial pressures from the pandemic and material shortages. More than 50% of idled suppliers anticipate needing at least a week to return to pre-strike production levels. MEMA has requested the White House to speed up commercial vehicle crossings at the U.S.-Mexico border due to added security checks slowing down transport from suppliers that are outside the US To this point, the UAW and OEM’s haven’t been feeling much financial pain. During the 2019 strike, GM lost an estimated $1 billion over the first two weeks, whereas the losses in the first two weeks of the current strike amounted to about $200 million. Public trust in self-driving cars is waning, as shown by a study from J.D. Power and MIT, with distrust growing due to perceived deceptive marketing practices and frequent robotaxi crashes. The 2023 Mobility Confidence Index Study indicates a declining trust in AVs over the past years, currently at 37 out of 100. First-time robotaxi riders tend to have positive views on AVs, but negative media coverage of deployment issues counters this sentiment. Autonomous vehicle crashes, some fatal, are prompting greater attention from legislators and regulatory agencies. Misleading naming conventions, such as Tesla's "Autopilot" and "Full Self-Driving," cause confusion, with 22% of study participants erroneously believing Tesla cars can operate fully autonomously. Tesla’ EV Semi truck clocked over 1,000 miles in a single day, 24-hour real-world test, challenging skeptics and outdoing competitors in the NACFE's Run on Less program. Tesla's achievement challenges Bill Gates' previous statements, doubting the viability of electric semi-trucks for long-haul distances, saying they would “probably never” work because of bat
Wed, October 04, 2023
Ford Takes Another Swing, New Car Sales Bump, Home Depot Goes EM by 2028
Shoot us a Text. Welcome to Wednesday as we talk about Ford's latest offer to the UAW. We also review the new car sales increases in Q3, as well as Home Depot’s plans to go all electric…mowers. Show Notes with links: Ford has presented its seventh proposal to UAW, offering higher pay raises and faster wage progression for new hires. Temporary workers' pay is set to increase by 26% to $21 an hour, and most full-time workers could see a "more than" 20% pay rise over four years. The company also committed to cutting the time it takes for new hires to reach the top tier of payment by “more than half” The proposal also promises no job losses with the opening of four EV battery plants and ensures product commitments for every UAW-represented factory. Jim Farley, Ford CEO, stated: "There's no doubt our UAW workforce put us on their shoulders during the pandemic, and these same workers and their families were hit hard by inflation. We want to make sure our workers come out of these negotiations with two things — a record contract and a strong future, "We've put an offer on the table that will be costly for the company... but one that we believe still allows Ford to invest in the future." The UAW has yet to respond to the offer US new vehicle sales surged in Q3, despite looming concerns of a UAW strike impacting supplies. General Motors saw a 21% jump in sales, benefiting from a demand in various vehicle categories, while Asian brands also experienced significant gains. Ford and Stellantis will report their figures soon. GM: 21% rise in U.S. sales (674,336 vehicles). 28% increase in EV sales from the previous quarter. GM specifically mentioned that it had 442,586 vehicles in inventory on Tuesday Stellantis (FCA U.S.): 1.3% decrease in sales (380,563 units for Q3). Toyota 12.2% rise in Q3 U.S. sales. Kia & Hyundai both posted higher sales for the period. Tesla: Missed Q3 delivery estimates due to factory upgrades. Home Depot aims to have over 85% of North America's outdoor lawn equipment run on rechargeable batteries by 2028 as the retailer plans to work with manufacturers to increase its selection of battery-powered products, replacing gas-powered alternatives. Transitioning to electric lawn equipment could reduce over 2,000,000 metric tons of greenhouse gases annually As a comparison, ro
Tue, October 03, 2023
UAW Hits Back Over The Net, Ford Cancels 2023 Lightning Stock, Predictive Pizza Ordering w AI
Shoot us a Text. Tuesday is in full swing as we talk about the UAW’s new counter offer for GM. We also talk about Ford’s cancelation of F150 Lighting dealer stock orders, as well as some fancy new tech that makes getting your crazy bread easier. Show Notes with links: Amidst ongoing negotiations between the UAW and GM, the union has finally presented a counteroffer . Ford has announced an additional 330 layoffs tied to the strike, bringing the total to 930 workers since September 15. GM's best offer so far included a 20% wage increase over four years as well as speeding up the rate at which new employees can reach top tier pay, and moving parts warehouse workers to similar rates as the plants GM maintains that so far they have put 5 record offers on the table David Barnas, a GM spokesperson said in a statement. "We are assessing, but significant gaps remain." In a decisive move to prioritize build quality, Ford has canceled all U.S. dealer stock orders for the 2023 F-150 Lightning. This comes as the automaker returns the vehicles to the dedicated Ford’s Rouge Electric Vehicle Center for a thorough review and assessment amidst growing concerns over the company's high recall rates this year. While some may raise concerns, Ford assures that this decision is not due to safety concerns. Instead, they are taking these measures to ensure that every F-150 Lightning truck meets their quality standards before reaching the consumers All units marked as ‘pre-sold’ have not been canceled The company had the most recalls out of any automaker so far this year; 4.1 million vehicles had been recalled in 2023. The quality challenges don't end with the Lightning. The National Highway Traffic Safety Administration has widened its investigations into reported engine failures in Ford's Bronco model. CEO Jim Farley acknowledges that improving quality is a long-term process for the company. Little Caesars is deploying new tech to make ordering and pick-up faster and easier. They're using data to predict what customers want, making service quicker and reducing mistakes. They’re even helping to train new employees in 15 minutes Little Caesars’ mobile app and "Pizza Portal" allow customers to order and pick up food without interacting with cashiers, reducing pickup time to 30 seconds or less. The company's CaesarVision platform, powered by AI, analyzes years of data to predict inventory
Mon, October 02, 2023
Weekend Warrior Tension, More EV Than ICE, U2 Warms Up NADA Venue
Shoot us a Text. Welcome to the best month on the calendar as we give a spirited UAW strike update, peruse the list of new vehicles over the next 18 months, and review the very first show at the site of the NADA Show opening party at the Las Vegas Sphere. Weekend tensions were rising between the UAW and the Detroit 3 as 7000 additional workers went on strike. Ford CEO Jim Farley alleges the union is holding automakers "hostage" with unreasonable demands, stating, "A bad deal would threaten midsize or expensive larger vehicles." and that if the goal was a historic contract, that was already on the table. UAW President Shawn Fain countered by accusing Farley of "lying about the state of negotiations." Fain emphasized, "Bargaining's always a two-way street," and criticized the companies for frequently shifting their stance. The dispute has now engaged approximately 25,000 workers. Nyle Maxwell, owner of four Stellantis stores and chairman of the Stellantis National Dealer Council, voiced concerns about the ongoing strike's impact on inventory and the supply chain. He’s been stockpiling fast moving parts and highlighted the potential crunch on Jeep Wrangler and Gladiator inventory. Maxwell emphasized, "any additional strike targets are just going to cripple the entire supply chain." He urges "more strategic thinking and less bluster." Flashback to 2017: Automotive News released its first annual Future Product Pipeline listing all plug-in vehicles headed to market. The Chevrolet Bolt was a fresh face and Elon Musk was touted as a champion of a progressive audience as he announced his ambitious promise of a $35,000 Tesla Model 3 made headlines. Today the Model 3 is the number one selling EV on the market even though it never met that price point, and the Gen 1 Bolt is about to be history. Since then, the automotive landscape has evolved dramatically , and the list of EVs coming to market is longer than the list of ICE vehicles Acura ZDX, Audi A6 E-tron, Audi Q6 E-tron, BMW i5, BMW i7, BrightDrop Zevo 400, Buick electric crossover, Cadillac Escalade IQ, Cadillac Celestiq, Chevrolet Blazer EV, Chevrolet Bolt EUV/EV, Chevrolet Equinox EV, Chevrolet Silverado EV, Cruise Origin, Dodge Challenger EV, Dodge Charger EV, Fiat 500e, Porsche Taycan, Ram 1500 REV, Ram ProMaster, Rivian R1S, Rivian R1T, Rolls-Royce Spectre, Tesla Cybertruck, Tesla Model 3, Tesla Roadster, VinFast VF 6, VinFast VF 7, VinFast VF 9, Volkswagen ID Buzz, Volkswagen ID4, Volkswagen ID7, Volvo EX30, Volvo EX90. Last Friday night, U2 kicked off a <a href='https://www.rollingstone.com/music/music-live-reviews/u2-sphere-opening-
Sat, September 30, 2023
Changing Lives One ASE Certified Tech At A Time
Shoot us a Text. Today we share a clip from ASOTU CON 2023 that includes a truly life-changing story made possible by the charity we supported, Vehicles For Change . If you are a Dealer in need of technicians, you should check them out...yesterday! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, September 29, 2023
Violent Accusations, Third Party Renaissance, Best Cities For Coffee
Shoot us a Text. We’re back in the studio on this last Friday in Q3 as we give an accusatory UAW Update, discuss a new WSJ report on third party listing sites, and count down the 20 best US cities for coffee drinkers. Show Notes with links: UAW President Shawn Fain accused General Motors and Stellantis of "enabling" violence against striking union workers by allegedly hiring "scab contractors as he highlighted three instances of violence and intimidation towards striking union workers, notably a hit-and-run at a GM facility in Flint, Michigan, which left five individuals injured. The Wall Street Journal reported that GM plans to use salaried workers for parts shipments, while Stellantis has stored a month’s worth of inventory for various parts, raising questions about their approach during the strike. Denied hiring replacement workers and expressed concern over certain UAW members' conduct on the picket lines. Stellantis further criticized Fain's "misleading and inflammatory statements" and urged for peace and de-escalation. GM: Reacted to the Flint incident by stating that the suspect, from an external housekeeping company, had been barred from company grounds. GM emphasized its commitment to the safety of all employees and said they were cooperating with authorities investigating the hit-and-run. Shawn Fain is set to give a video address at 10 a.m. ET on Friday and may announce walkouts at more Detroit Three auto factories, depending on the outcome of ongoing negotiations. As the impact of the UAW strikes are yet to be realized, a new Wall Street Journal article highlights the shifting dynamics in the auto retail sector from a sellers to a buyers market. As inventory and choice have expanded, and consumers are being more selective, third party car-listing platforms like CarGurus and Cars.com are poised for significant growth opportunities. The online platforms are essential for dealers as a majority of consumers now research car purchases online. An equity analyst at UBS reports that Cars.com claims about half of the 40,000 U.S. dealerships list on its site, while CarGurus had over 24,000 paying dealers by the end of 2022. In last week’s earnings call, CARS CEO Alex Vetter said dealers are turning to their platform to give increased exposure to units that aren’t selling quickly and at least one store interviewed by the UBS analyst said they allocate up to 50% of their total marketing spend on these platforms. Today is National Coffee
Thu, September 28, 2023
The ASOTU CON Cooldown Episode
Shoot us a Text. It's the morning after ASOTU CON, but we're fired up on this fine Thursday. We talk about the things we learned, give a UAW update, and encourage you to press in to ASOTU. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, September 27, 2023
Biden Visits the Picket Line, Big Tech Stifling Innovation Innovation, and ASOTU CON Day 2
Shoot us a Text. Welcome to the day 2 stage at ASOTU CON. The conversations, content, and even food have been amazing! Today we have a few wild quotes from the UAW update and look at some commonalities between auto and other big tech. Show Notes with links: Joe Biden became the first sitting U.S. president in modern history to join a picket line . This event took place outside GM's Willow Run Redistribution Center in Belleville, Michigan, during the 12th day of the UAW's strike against the Detroit 3 During his visit, Biden expressed support for the workers, emphasizing that they deserve better compensation. He stated that the automakers are thriving, and so should the workers. Responding to a question, he also agreed that the workers should be able to bargain for a 40% raise. “You deserve what you’ve earned, and you’ve earned a hell of a lot more than what you’re getting paid now,” “We have the power, the world is of our making. The economy is of our making. This industry is of our making. … When we withhold our labor, we can unmake it.” Stellantis claimed they had met Biden's call for a record contract and emphasized the need for an agreement that is fair to both their workforce and the company. Ford indicated that it preferred to handle negotiations without external intervention. GM reiterated its commitment to reaching an agreement beneficial for its workers and the company's future Former President Donald Trump was scheduled to visit Michigan, notably at a nonunion automotive supplier. Fain criticized this choice and mentioned Trump's lack of support for UAW during their 2019 strike. Several workers expressed their gratitude and excitement over Biden's visit. Some emphasized the significance of the auto industry in building the middle class and their desire for fair compensation. It seems big tech companies have a part to play in stifling innovation outside of auto too, according to a point of view piece from Fast Company. Large technology corporations, including IBM, have been accused of limiting innovation by dismissing or discrediting proven technologies that do not align with their narrative or capabilities. Smaller, innovative companies are perceived as “risky,” with big tech suggesting their own forthcoming solutions as safer bets, discouraging investment in emerging competitors. Big tech companies also wield significant influence over academia and government, potentially directing research focus towards their own objectives and dominating lobbying efforts, making it harder fo
Tue, September 26, 2023
Barely Veiled Threat, All EV Nissan Lineup, and LIVE at ASOTU CON
Shoot us a Text. The day has finally arrived as we are LIVE from the ASOTU CON Main Stage! Today we talk about how excited we are for the second year of ASOTU CON, one OEM pulling back on EVs and another pushing forward. Show Notes with links: Ford Motor Co. has halted construction on its $3.5 billion electric vehicle battery plant in Marshall, Mich. until ‘until we're confident about our ability to competitively operate the plant.' The UAW criticized the move, calling it a "shameful, barely-veiled threat" to cut jobs during tense contract negotiations. Ford's spokesperson, T.R. Reid, mentioned they are pausing to ensure their ability to operate the plant competitively and haven't finalized decisions on the planned investment. Originally scheduled to open in 2026, the BlueOval Battery Park Michigan plant is expected to employ 2,500 workers, producing batteries to power approximately 400,000 EVs. Nissan announced that all of its new models in Europe will be fully electric and it plans to sell only EVs in Europe by the year 2030. Nissan announced its intention to exclusively sell EVs in Europe by 2030. With CEO Makoto Uchida affirming the irreversible shift towards electrification, "There is no turning back now," CEO Makoto Uchida said. Nissan aims to align with Renault, Ford, Stellantis and Volvo as automakers planning to be fully EV in Europe by 2030. Nissan says some of the push to change comes from China. "There's a lot of competition happening ... the Chinese (carmakers) are coming massively," Uchida said. "The Chinese have moved much, much faster than we expected." Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, September 25, 2023
Ford in the UAW Clear, EVs for Clunkers, and Spotify May Send Us International
Shoot us a Text. The day we have all been waiting for. Tonight we launch ASOTU CON, but this morning we still have the UAW to check in on, dealers seeing the EV tax incentives in a new but old light, and Spotify testing some voice replication features! The UAW strike has expanded to include 38 GM and Stellantis parts distribution centers across 20 states, affecting the dealerships' service business, however, talks with Ford have seemingly made good progress This action highlights the issue of wage disparities. Parts depot employees typically earn between $16-$24 an hour, compared to up to $32 at assembly plants. Eric Ray, a worker at GM's Ypsilanti Processing Center, stated: "We do just as much work as they do in the automotive plants. We do the same thing, we should be treated the same way." UAW President Shawn Fain is committed to eliminating varying wage rates, emphasizing that "The PDCs in particular, they've been stepped on a lot in the past." Notably, UAW made "real progress" in negotiations with Ford Motor Co., choosing not to add any Ford plants to the targeted strike, highlighting Ford's willingness to address key union priorities Harkening back to the time of Cash for Clunkers , some dealers fear that EV tax incentives may take a long time to come through. Beginning in 2024, eligible EV buyers can transfer federal tax credits to dealers, using these funds as a down payment. The move is part of the Inflation Reduction Act’s provisions to support new and used EV purchases. Tyler Slade, operating partner at Tim Dahle Nissan Southtowne, expressed nervousness, citing history and concerns about waiting for government reimbursement: "You're going to have plenty of dealers that aren't going to be comfortable with that risk … waiting for the government to pay, much like Cash for Clunkers." Organizations like AIADA and NADA are actively working to streamline the point-of-sale transaction and ensure swift and accurate reimbursement from the government to avoid the issues faced during the Cash for Clunkers program. Spotify is launching a new beta test that will take the voice of a few select podcasters and translate them to other languages using AI. The innovative tool is initially translating podcasts into Spanish and French, with German translations in the pipeline. It not only translates the podcast into different languages but also syn
Sat, September 23, 2023
Pulling A Fire Engine At A Dealer and In-Person Gratitude
Shoot us a Text. As we being to converge on the Live! Casino and Hotel south of Baltimore for ASOTU CON 2023 , we take a moment to talk about our Head Writer, Chris Reeves', favorite story of the week . Yes, it involves a fire engine pull at a dealership :) We also talk about Chris's reaction to meeting so many people that read his words every day. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, September 22, 2023
Bad Faith?, Toyota Charges Up, Rental EV Delivery, Cold Is Better Than Hot
Shoot us a Text. It’s the last Friday before the big week and we’re talking about some BTS info from the UAW side of labor talks. We also give a rounded look at EV news as we ramp up to our big week of experts and news releases next week at ASOTU CON. According to leaked messages from a top aide to UAW President, Shawn Fain, suggest the union aims to damage Detroit 3 automakers' reputations to "keep them wounded for months." Stellantis described UAW Communications Director Jonah Furman's comments as "incredibly disturbing." Ford's Mark Truby said they're "disappointing, to say the least," emphasizing their commitment to bargaining in good faith. General Motors expressed concerns about the UAW's intention to cause prolonged disruption. In the leaked messages, Furman explained the union's approach, "They can basically price in an all-out strike... But if we can keep them wounded for months they don't know what to do... Plus we're breaking pattern and they're bargaining against each other for the first time in 70 years." Previously, the UAW has been accusing the OEMs of bargaining in bad faith There is also talk about the proposal of the 32 hour work week, which helped to elicit great support from UAW members, never being considered as an actual goal , but more about bringing up a conversation about work-life balance Fain is scheduled to go on FB live today at 10am to announce the next wave of strike targets if significant progress hasn’t been made EV Update: According to a Nikkei newspaper report, Toyota Motor Corp. is set to accelerate its EV production, aiming for an annual output of over 600,000 EVs by 2025 marking a significant uptick from their sales of fewer than 25,000 EVs worldwide last year. The automaker's previously stated objectives are to sell 1.5 million EVs every year by 2026 and to achieve sales of 3.5 million (roughly a third of its current global volume) by 2030. Fleet management and rental company, Ryder, has begun deploying the first of its 4,000 BrightDrop electric vans across four key US cities. These cities include Santa Fe Springs and Hayward in California, Dallas-Fort Worth in Texas, and Long Island City in New York. A new study by Recurrent an
Thu, September 21, 2023
UAW Whispers, EV Gender Gap, Fall Is Accident Season
Shoot us a Text. Thursday is tearing around the track as we share the UAW whispers we’re hearing out there. We also talk about a new report on the EV gender gap, as well as the reasons Fall sees the most car accidents. UAW Update: Yesterday was a day with minimal fanfare but a few steps forward: Stellantis submitted a new contract proposal to the UAW, marking its fifth offer since negotiations began, which centered on "subcommittee open issues." This is the first new proposal from any of the Detroit 3 automakers since the UAW began their strike on September 15. UAW President Shawn Fain still threatens to escalate the strike, adding more workers to the picket lines, if "serious progress" isn't made by the union's Friday deadline. GM disclosed details of its latest offer, promising raises totaling 20% over the next four years, resulting in top wages reaching $39.24 by 2027. They also reduced the number of years it takes for new hires to reach the top pay tier from eight to four GM's President Mark Reuss pushed back on what the company has called ‘misinformation’ in an op-ed. The company reiterated that their proposal would equalize wages across roles, potentially raising base wages for 85% of GM's workforce to around $82,000 annually and $150,000 when factoring in items like benefits and overtime. Reuss criticized the UAW's demands, emphasizing GM's significant investments into its employees and noting the company's financial contributions, including a net income of roughly $65 billion from 2013 to 2022 A recent survey by Edmunds reveals that men are more likely to purchase EVs than women, with 67% of EV buyers in 2023 being men and 33% women. This gender disparity in EV purchasing is greater than that in the overall U.S. car market, where 59% of buyers are men and 41% are women. And the reasons they buy EVs couldn’t be further apart Men tend to purchase EVs driven by the novelty and the excitement of owning new technology, with brand loyalty playing a significant role. In contrast, women prioritize practical aspects like value and range. The average EV price, close to $60,000, is a concern. Women show a preference for EVs priced under $30,000 leaning towards plug-in hybrids as a bridge between traditional and fully-electric cars. We’re only two days away from the first day of Fall. Known for its fall foliage and pumpkin spice, the coming season also sees the highest number of vehicle accidents
Wed, September 20, 2023
Dodging A Canadian Bullet, Reputation Results, Marketers v. Consumers
Shoot us a Text. Welcome to Wednesday as we take another step down the auto row and summarize the last 24 hours of action in the UAW negotiations. We also talk about the latest Reputation report for Dealers, as well as diving into the sizable gap between how marketers think vs the general consumer. UAW Update: Unifor and Ford Motor Co. of Canada reached a last-minute tentative labor agreement, preventing a second union walkout in North America and the first in Canada against Ford in 33 years. Ford released a statement rebutting many of Shawn Fain’s primary campaigning points: Fain said CEO pay was up 40%, but Ford contends he lumped all CEO pay together and Farley’s pay was only up 21%...below what their current offer on the table is for hourly workers Fain criticized stock buybacks, alleging they were up 1,500 percent over the past four years, while Ford pointed out they had only bought back shares twice, and at a lower volume than General Motors, primarily to offset dilution from pay and debt Fain argued that the Detroit 3 CEOs made their millions by exploiting workers at "poverty wages, while Ford pointed out that current hourly employees are among the best-paid manufacturing workers in the country, with an average annualized compensation of $112,000, including wages and benefits. Their most recent offer would bring this average up to $133,000 in total compensation, including $92,000 in cash alone. The 2023 Automotive Reputation Report shows an 11% YoY increase in dealership reviews, reaching a three-year peak. 84% of consumers consider reviews crucial for their dealership choices, with 74% requiring at least a 4-star rating; 62% read more than five reviews, and 63% would travel over 20 miles for a well-reviewed dealership. Infiniti and Mitsubishi topped the luxury and non-luxury brand rankings respectively, with AutoNation leading public dealer groups and Infiniti of Nashua being the top-rated dealership. A recent study commissioned by iHeartMedia and Pushkin Industries, co-founded by best-selling author and thought leader Malcolm Gladwell, spotlights significant discrepancies between consumer and marketer awareness and values. This gap is potentially leading to marketing campaigns that misalign with consumer interests. Notably, while every marketer knew about NFTs, only 60% of consumers did.
Tue, September 19, 2023
Twin Strikes, Trump Going On The Auto Record, Doc Martin’s Resale Markets
Shoot us a Text. We’re a week away from day one of ASOTU CON as we give a UAW strike update, talk about Trump’s coming comments on the dispute, as well as iconic boot maker, Doc Martin’s, foray into the repair and resale market. As the deadlock continues, UAW President Shawn Fain warns of an escalating strike against the Detroit 3, encompassing General Motors, Ford, and Stellantis, unless significant progress is made in negotiations by Friday. Now, a potential dual strike threat facing Ford in the U.S. and Canada. UAW President Shawn Fain announced, "If we don't make serious progress by noon on Friday, Sept. 22, more locals will be called on to stand up and join the strike," indicating the potential for an expanded strike against the Detroit 3 if negotiations don't progress satisfactorily. Stellantis, in a statement, emphasized a constructive discussion with UAW, highlighting their aim "to find common ground to reach an agreement that provides a bridge to the future." They are especially focused on resolving issues around their Belvidere Assembly Plant in Illinois, which has been inactive since February. Meanwhile, Ford is navigating the threat of simultaneous strikes in the U.S. and Canada. A potential strike in Canada could impact 5,600 workers and significantly disrupt U.S. operations, especially concerning the V-8 engines that power Ford's Super Duty pickups, F-150s, and Mustang After Joe Biden weighed in on the strike last Friday, saying that the big three haven't appropriately shared profits with workers, former President Donald Trump is planning on taking a crack at it as well. Trump is planning on skipping the second Republican presidential debate to address union workers in Detroit on Sept. 27 to focus on the negative aspects of Biden’s EV policy. The speech to Detroit auto workers and blue-collar union members is part of Trump's intensified campaign to reclaim the support of working-class voters who sided with Biden in 2020. While Biden has long championed union support, some auto workers feel he hasn't sufficiently confronted manufacturers over large industry profits; Trump aims to capitalize on this discontent, asserting he'll stand with union members if re-elected president. London based boot maker, Dr Martens plans to launch a shoe repair service in Britain </
Mon, September 18, 2023
Slow Going UAW, Lithia Makes A Big Move, The First EV On The Leasing Charts
Shoot us a Text. Welcome to another amazing week in Retail Auto as we give a progress report on the strike as well as some uncomfortable moments for Mary Barra and Jim Farley. We also talk about Lithia’s largest acquisition to date, as well as Tesla landing the first EV on the leasing Top 10 list. Show Notes with links: “Progress is slow,” and “I don’t really want to say we’re closer.” was the sentiment communicated by UAW President Shawn Fain on MSNBC’s “The Sunday Show with Jonathan Capehart.” The UAW resumed talks with GM on Sunday, and will do so with Stellantis and Ford on Monday. In a Friday press conference, Fain said “it could be in a day, it could be in a week.” Also over the weekend both GM CEO Mary Barra on CNN and Ford CEO Jim Farley on ABC were asked how they justify their compensation in light of the UAW demands for a pay increase. Both redirected the question and pointed out that the offers that are on the table are historically generous. The largest auto group in the US, Lithia, continues its expansion with its largest acquisition to date. But it's not in the US and it's not just about dealerships, it’s also about software. Lithia Motors Inc. intends to purchase Pendragon's dealership and fleet business, which includes 160 retail locations in the U.K., primarily under the Stratstone or Evans Halshaw branding. The deal also includes acquiring Pendragon Vehicle Management, a vehicle fleet management platform with 15,000 to 20,000 vehicles Pinewood Technologies, a cloud based DMS, aims to stand as an independent software entity. With around 30,000 global users, the focus is on leveraging its cloud-based, tech-savvy software. Lithia, holding a 16.7% stake, plans a joint venture to introduce a Dealership Management System (DMS) to North America within the next three to five years. Overall, the Pendragon acquisitions are anticipated to add $4.5 billion in annual revenue to Lithia, making it their most significant purchase to date and bringing annual revenue over $38B. Their goal is $50B by 2025 The Tesla Model 3 has become the first electric vehicle ever to enter the top 10 leased models in the U.S. according to a new report by Experian Ranking seventh in Q2, the Model 3 accounted for 1.79% of leased new vehicles, with approximately 25% of the 42,000 new Model 3s retailed during that period being leased, marking a 14-point surge from the previous year. In the second quarter, the top
Sat, September 16, 2023
Shoes and Service Dogs on a Saturday
Shoot us a Text. Today on our Saturday episode, we welcome writer Kristi Reeves and Producer Nathan Southwick to the pod! We talk about some of the silent auction swag items that Kristi is working on for ASOTU CON and then share how Cavender Auto Group partnered with "Dogs for a Cause" to support veterans. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, September 15, 2023
The Strike Is On, EV’s and Cool Kids, Swaggy Warehouse
Shoot us a Text. Friday is coming to a full stop at some OEM plants but not here as we cover the UAW’s historic strike. We’re also talking about the growing cool-competition to Tesla, as well as the possible effects of trendy swag on traditional retail. Show Notes with links: Nearly 13,000 hourly workers began a strike against Ford Motor Co., General Motors, and Chrysler (Stellantis). This is the first simultaneous strike against all three automakers in UAW's 88-year history. When UAW President Shawn Fain arrived to announce the strike, he appeared outside the Michigan Assembly Plant, located west of Detroit, shortly after midnight. The scene was marked by a heightened sense of unity and emotion as Fain was described as being jubilant, smiling, leading chants, and actively participating in the gathering. The strike will halt the production of high-demand vehicles such as the Ford Bronco, Jeep Wrangler, and Chevrolet Colorado GM: Expressed disappointment in UAW leadership actions despite GM's "unprecedented economic package." Ford indicated the union's counterproposal showed little movement from initial demands. Stellantis expressed disappointment in UAW's refusal to engage responsibly and took protective measures for its operations. Amid increasing competition in the EV market, Tesla's once-dominant position is being challenged . As major automakers unveil diverse electric models, industry experts discuss the shifting landscape, Tesla's unique sales approach, and the broader issue of EV affordability at the 2023 Automotive News Congress in Detroit. Diane Maher, president and chief operating officer of Michigan-based Fox Motors: “Now there are other cool kids, So, Tesla is not the only game in town. America loves a choice.” Damon Lester, owner of the Maryland-based Lester Auto Group: “Tesla has done a good job capitalizing its market share. People will see other EVs on the road and say, ‘That’s a cool car – and it’s not a Tesla.’” The Punchline: The Stellantis plant in Ohio is the only one among three plants that manufactures an electrified vehicle, the Wrangler 4xe plug-in hybrid Jeep. Costco's private label, Kirkland Signature, originally introduced in 1995, has evolved from a household essential into an unexpected fashion sensation . Its original private label strategy was spread across 30 different labels
Thu, September 14, 2023
Stand Up Strike, People Like The Process, EV Rental Lock In, Tesla Electric Co
Shoot us a Text. It's an amazing Thursday to be in the car biz as we have our daily UAW strike update, talk about a revealing CDK consumer study, and learn about a first time EV renter who got locked inside a Tesla. On the UAW sentiment tracker, the needle has moved back from its more moderate position of “deeply inadequate” to “insulting. On a livestream yesterday afternoon, UAW President Shawn Fain declared potential strikes at Detroit 3 auto plants, citing "insulting" wage increase proposals from automakers. Amid rising tensions, Ford and Stellantis claim the UAW hasn't responded to their latest offers, while GM emphasizes its commitment to workers through beneficial offers. Since the last check in, the offers from all of the Big 3 have gotten better. Recent proposals from automakers include 20% wage increase from Ford, 18% from GM, and 17.5% from Stellantis. All three proposed cutting the time for new hires to earn top wages from eight years to four. A new CDK study of consumer satisfaction with the car buying process is good news for dealers but offers a lot of room for improvement as 83% find purchasing straightforward, yet satisfaction drops drastically if the transaction takes more than three hours. It revealed that while 83% of consumers found it easy to buy a car, satisfaction dropped to 54% if the transaction exceeded three hours. 77% of customers were highly satisfied with a purchase process of two hours or less, but their willingness to recommend the dealer dropped significantly with longer transactions. Despite online car-buying options, 66% of respondents preferred in-person dealership visits, especially among first-time buyers. Key findings: Only 44% found their desired vehicle in stock, 43% visited two dealerships, and factory orders have decreased from 28% to 18% since June 2022. As rental car company Hertz set out to increase EV adoption by buying a lot of Teslas, they didn't make fans of two first-time EV drivers as a mother and daughter found themselves stranded in an undercharged Tesla. Becky Liebau and her daughter from Gurnee, Illinois, were stranded in a Tesla Model 3 they rented from Hertz, despite initially reserving a gas-powered vehicle, as it was provided with less than 50% charge. Hertz provided a first-time EV driver with a Tesla that was under 50% charged, failed to include an adapter for non-Tesla charging stations, handed over a vehicle with low tire pressure, didn't educate t
Wed, September 13, 2023
Generous Ford and Hybrid Pickups, Auto Congress Is Rocking , Old School Goodwill Meets Ecomm
Shoot us a Text. Welcome to Wednesday as Ford waxes generous and also talks about their big dreams for hybrid F150s. We also cover some of the conversations at the Auto News Congress. Finally, we talk about good ‘ol Goodwill finding its ecommerce stride. When asked yesterday about the looming UAW strike, Ford CEO, Jim Farley , described the latest contract proposal to UAW as their "most generous offer in 80 years." However, the UAW might strike selected plants if no deal is achieved with Detroit's big three automakers before the looming deadline. Ford believes its F-150 could soon rank as the top-selling hybrid model , according to Kumar Galhotra, president of Ford Blue. Ford is set to release an updated 2024 F-150, including a new hybrid variant, aiming to quadruple hybrid sales in the next two years with F-150 and Maverick compact pickup as focal points Currently, 10% of F-150s sold are hybrids. Ford sold an estimated 25,000-30,000 F-150 hybrids in the first half of this year, while Toyota sold 57,208 RAV4 hybrids in the same period. As U.S. legislators are pushing for an accelerated transition to EVs, Dealers have been left to bridge consumers' knowledge gaps according to panelists at the 2023 Automotive News Congress Retail Future panel. Our own Damon Lester and other Dealers highlighted key barriers to EV adoption, including range anxiety, affordability, and the challenges of establishing home charging infrastructures. Damon Lester, owner of Lester Automotive Group, emphasized the importance of charging infrastructure, stating that everyday use of an EV isn't feasible without it. He remarked, "We urge consumers to ask those types of questions because many are not looking at EV ownership through that lens." Lester proposed an expansion of incentives, suggesting, "We are urging some legislators to put a moratorium on the income-based formula for incentives, to make it open again for a certain period of time so that everyone is able to get them." Thrift store shopping has never been more popular, and it’s starting to feel more native to younger generations as GoodwillFinds.com, the online platform launched by Goodwill last year, has expanded its reach to over 500 stores with the addition of four new regional members. Many Goodwill reg
Tue, September 12, 2023
UAW Compromise, Detroit Auto Show, Volcano Knox, See Ya Soda Fountains
Shoot us a Text. It’s Tuesday time as we give an update on a new UAW compromise, talk about the Detroit Auto Show and Battery Show that begin this week. We also cover a massive lithium deposit in the US as we say farewell to public McDonalds soda fountains. Show Notes with links: Yesterday, in a pivotal display and just days before the strike deadline , UAW has reduced its pay raise demand to the mid-30% range, signaling a potential compromise. This decision comes after weeks of intense negotiations with Detroit's top three automakers, amid rising tensions and high-stake counter proposals. "We are ready to negotiate in Detroit 24/7, just as we have been for the past seven weeks since we gave them our members demands," Fain said Monday. "Despite receiving no response for over a month, when the CEOs are ready to make a serious offer we'll be there, day or night. It's unfortunate the companies have waited until the last moments to get focused on the needs of 150,000 autoworkers, our families and our communities." As the Detroit auto show starts its engines on Thursday, the traditionally international flair is steering more national. Despite the pandemic's disruption and a shift toward online car sales, these events remain vital marketing venues, drawing consumers eager for a hands-on experience with the latest vehicle models. In the U.S., car shows are a crucial marketing tool. Before pandemic lockdowns, Foresight Research estimated 6.5 million U.S. households attended car shows, with three-quarters of those intending to buy a car in the upcoming year. The site advertises 15k attendees, 200 speakers, and 800 suppliers New research indicates the McDermitt Caldera, an ancient supervolcano site on the Oregon-Nevada border, may hold the world's largest lithium deposit. This could revolutionize the U.S. EV supply chain with an eco-friendly extraction method. However, local tribes raise concerns over potential mining on sacred lands. The McDermitt Caldera, located on the Oregon-Nevada border, could potentially be the world's largest lithium deposit, containing over 132 million tons. This deposit could surpass the former largest known deposit, the Atacama Salt Flat in Bolivia, providing 12 times more lithium. The Bureau of Land Management's proposal to mine this region has faced opposition from local tribes, with potential mining to start in 2026 if approved. McDonald's has announced plans to <a href='https://www
Mon, September 11, 2023
Moment of Silence, UAW Sentiment Tracker, Ford Loves Apple, Toyota Dealers Love Toyota
Shoot us a Text. We’re starting Monday off right as we remember the heroes that made us stronger. We also bring some updates on the UAW negotiations, Toyota’s annual dealer meeting, as well as Ford getting cozier with Apple. UAW Strike SENTIMENT TRACKER… Last week “Insulting” was the word UAW President Shawn Fain used to describe the offer that GM slid across the table at 16%. On Friday we ticked down a notch to “ deeply inadequate ” as Fain addressed the Stellantis offer of 14.5%. This comes as the September 14th contract deadline is only days away and negotiations seem to be in full swing across all of Detroit's Big 3 Stellantis announced they'll provide employees with $10,500 bonuses tied to inflation, with $6,000 distributed in the deal's first year. Regarding the cost of living increases (COLA): Fain quipped, ““That’s not COLA; that’s not even diet COLA,” Fain quipped. “That’s Coke Zero.” Over 1,200 enthusiastic Dealer attendees are gearing up for the Toyota National Dealer Meeting this week in Las Vegas from Sept. 12-14. This annual event promises excitement, especially with Toyota celebrating its best retail sales month in nearly two years and the recent launch of the Tacoma and Land Cruiser vehicles. Toyota has been slower than other OEMs in its approach to EVs, and David Christ, the group VP and GM said, “I think the general feedback from our dealers on our approach to electrification has been extremely positive. I feel that they like the approach. Most dealers (are multi-franchise) and dealers have communicated to us that they like the ability at Toyota to give their customers choices. They like the direction our powertrains are going as far as (fuel) economy, horsepower, torque and the drivability aspects. And, honestly, they are telling us to keep going with our approach.” The meeting also marks the one-year anniversary of the introduction of the company's SmartPath tool. Toyota designed the platform to bridge the gap between online and in-person shopping, attempting to offer customers a seamless transition from digital browsing to the dealership experience, and highlighting Toyota's commitment to modernizing the car-buying journey. As GM gets ready to pluck Apple from their EV lineup, Ford is taking a bigger bite as they announce that the F-15
Sat, September 09, 2023
A Dealership Get In The Exercise Game... for their Community's Youth
Shoot us a Text. Welcome to Saturday, and while many of us are anticipating the start of the NFL season, we are joined by head writer Chris Reeves. He shares a story of a Canadian dealer group that made it possible for 13-17 year olds to have free access to exercise equipment in the city of Ottowa. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, September 08, 2023
Insulting Offers, Off Lease Loses, 20K Hotel Chargers
Shoot us a Text. Friday is in the house and we’re giving you an update on the looming strike, as well as covering the closure of a once successful used car group. We also talk about a big partnership between Hilton Hotels and Tesla. Show Notes with links: “Insulting” is the word UAW President Shawn Fein used to describe the offer that GM slid across the table yesterday in an effort to avoid a potential strike. GM has proposed a 16% pay increase over four years for hourly workers, a $5,500 ratification bonus, $5,000 in inflation-protection bonuses, and the addition of Juneteenth as a paid holiday. They also aim to reduce the time for new hires to reach top wages from eight years to six. UAW President Shawn Fain criticized GM's offer as inadequate, citing GM's refusal to consider cost-of-living increases, retiree pay hikes, and other demands. GM’s offer tops Ford’s offer from last week, the first of any of the Big 3, by at least 1% as well as the addition of the Juneteenth Holiday "Our offer includes well-deserved wage improvements that far exceed the 2019 agreement and reward you for your hard work," GM said in a letter to workers. "We still have work to do, but we wanted to make this offer to show our good faith efforts to keep the process moving." Falling victim to the ongoing turbulence in the used car market, regional used-car dealership group, Off Lease Only, has filed for Chapter 11 bankruptcy protection. The Florida and Texas-based company terminated all its employees and announced the wind-down of its operations amidst challenges like inventory scarcity and vehicle price inflation. Check out the internal memo shared by our friend Car Dealership Guy . The company closed all five of their locations and laid off all 545 of their employees Tesla and Hilton have announced a partnership to introduce 20,000 electric vehicle charging stations across 2,000 Hilton properties in North America giving a huge boost to EV charging infrastructure goals while reflecting a significant shift in traveler priorities. “We’re seeing a rapid and steep increase in the number of requests for EV charging. We’re trying to meet our guests’ needs with this new agreement with Tesla,” Matt Schuyler,
Thu, September 07, 2023
Very Poor Auto Privacy, Potential Strike Targets, Most Expensive Toyota
Shoot us a Text. It’s Thursday AND the first day of the NFL Season. Fan or not, we are definitely entering Fall-mode as we talk about a recent privacy study that puts Auto at the bottom of the list. We also take a look at how the potential strike may roll out. Finally, we look at the most expensive Toyota coming soon to the US of A. Show Notes with links: A recent report by the Mozilla Foundation, the company most known for its privacy-first browser Firefox, has labeled modern cars as the "worst privacy nightmare" highlighting extensive data collection practices, from basic personal information to sensitive data like genetic details. “While we worried that our doorbells and watches that connect to the internet might be spying on us, car brands quietly entered the data business by turning their vehicles into powerful data-gobbling machines,” says Mozilla in the report. The study revealed 92% of automakers provide minimal control over user data, and 84% share it with external parties Notably, Nissan and Kia collect data on users' sexual activity. Mozilla couldn't verify if any automakers met its data encryption and theft protection standards, highlighting the fact that dating apps often provide better security details than cars. Mozilla spent over 600 hours on the study, which is far more than than typical. Tesla ranked lowest. In an unprecedented move, the UAW is considering a simultaneous strike against Detroit's Big 3 automakers. This potential action, involving nearly 150,000 workers, could severely drain the UAW's $825 million strike fund. Strategists debate the sustainability of such a strike, alongside the potential for major financial impacts and production losses for the automakers. "Let me assure you, the VPs, myself, all the leadership at this level, the bargaining committees, we understand how to manage this," Fain said in response to a worker's question on the issue during a Facebook livestream in early August. "We have a plan. Come Sept. 14, if these companies don't deliver, they're going to see that plan unfold." When on strike, workers receive $500 per week plus potential health coverage from the Union while funds remain Not wanting to be left out of the ultra-lux game , Toyota has unveiled a revamped plug-in hybrid version of its prestigious Century model, often dubbed the 'Rolls-Royce of Japanese cars'. Traditionally res
Wed, September 06, 2023
EV Tech Shortage, Auto Hackathon, JC Penney Is Back In Black
Shoot us a Text. Welcome to Wednesday as we dive into the growing need and shortage of EV technicians. We also cover a first-ever automotive hackathon, as well as JC Penney’s retail comeback plans. Show Notes with links: EV repair is facing a severe shortage of qualified technicians and repair shops threatening increased repair and warranty costs as many independent garages hesitate to invest in training, citing high training and equipment costs and electrocution risks associated with EVs. Generally speaking, the auto repair industry faces a workforce shortage since the pandemic, with the UK possibly lacking 25,000 EV technicians by 2032 and the US needing around 80,000 electrician jobs annually through 2031 which includes EV repair techs and installers of specialized charging and repair equipment Warranty costs for EVs, like the Tesla Model 3, are already higher than their fossil-fuel counterparts due to the reliance on pricier franchise dealers for repairs. Only 1% of UK automotive technicians are qualified beyond routine EV maintenance, even though EV sales have risen. Training uptake for these qualifications has declined in 2023 compared to 2022. Initiatives like the Siemens Foundation's $30 million program aim to train US technicians for EVs, but many believe the training and repair infrastructure needs more substantial and swift support. Nicholas Wyman, executive director of the U.S. Institute For Workplace Skills and Innovation, said most repairers are on their own. "If you're waiting for the (U.S.) government to take action, you'll be waiting a freaking long time," he said. The Zero Day Initiative has announced its inaugural Pwn2Own Automotive hacking contest to be held in Tokyo with over $1 million in cash and prizes, including a Tesla car. Hackers will compete in four categories: Tesla vehicles, EV chargers, operating systems, and in-vehicle infotainment systems. Highest prize of up to $200,000 for exploits targeting Tesla vehicles' autopilot, gateway, or VCSEC; a Tesla car as an additional prize. JCPenney has revealed plans to invest $1 billion through 2025 to enhance customer experience and improve operating efficiencies as CEO Mark Rosen says the retailer is on “strong financial footing and increasing relevance with core customers” 650 JCPenney stores will be refreshed with brighter lighting, fresh paint, cen
Tue, September 05, 2023
Public Gross Profits Down, Deep Dive on UAW Boss Fain, New San Fran
Shoot us a Text. We throttle down on Tuesday as we rip into the week talking about a gross profit decline among the publics. We also get a little deeper on UAW President Shawn Fain as well as a new city created from scratch in San Francisco. Show Notes with links: As projected earlier this summer, F&I profits per vehicle are dropping and 4 of the 6 publicly traded groups report proof in their Q2 earnings. CFO Joe Lower said on a July 21 earnings call that AutoNation averages more than two products per deal, which has led to more than 70 percent of its F&I profits coming from products. Analysts point to affordability issues impacting customers’ ability to purchase protection products and falling vehicle prices impacting rate markup profitability. Continued lifts in F&I profits are expected as online retailing continues to grow. AutoNation and Lithia both cited strong growth in their captive finance arms and expect them to drive future profitability. As the strike rhetoric between the UAW and Detroit's Big 3 keeps heating up, many are working to learn more about the rather blunt personality. A WSJ article over the weekend took a deeper dive into the background, preferences, and quirks that make UAW President Shawn Fain tick. Grew up in a politically active family, father was a local policeman , mother was a nurse Started his career as a union electrician for Chrysler Carries one of his grandfathers paystubs from the 1940’s First candidate to unseat the incumbent in 70 years, won by 1% Appreciates Legacy: Frequently references Walter Reuther, the 1940s union boss. Influenced by Varied Figures: Counts civil-rights activist John Lewis and college-basketball coach John Wooden among his inspirations. Music Taste: Fan of ’90s hip-hop, entered a rally to Eminem’s “Not Afraid.” Independence: When asked about his role model, he emphasizes his individuality, stating, "I am who I am." Watches the TV show “Ted Lasso” with his daughter. Made a sarcastic remark about Indiana being known for "cornfields and communism" when asked about a comment linking him to Trotsky. Owns a placard that reads: “I don’t sugar coat s—. I’m not Willy Wonka.” Some tech billionaires are planning a city with big promises outside of San Francisco called ‘California Forever’ . The web
Mon, September 04, 2023
Paul and Kyle Put ChatGPT To Work on Labor Day.
Shoot us a Text. In honor of Labor Day, Paul and Kyle decided to take the technology that is reimagining ‘work’ and seeing if it can hang with some real-live human work ethic as they attempt to flawlessly perform a script about Labor Day for Auto Dealers. What could possibly go wrong? [Background Music Starts] [Opening Jingle] Narrator: "Welcome to The Automotive Troublemaker, the podcast that revs up your engines with the latest trends, tips, and tricks in the automotive world. And now, please welcome your hosts, the entrepreneurs who are shifting gears in the industry, Paul J Daly and Kyle Mountsier!" [Applause Sound Effect] Paul: "Hey everyone! Welcome back to another episode of The Automotive Troublemaker. I’m Paul J Daly." Kyle: "And I’m Kyle Mountsier. We’ve got a special episode for you today as we celebrate Labor Day, a day dedicated to honoring and recognizing the American labor movement, and the works and contributions of laborers to the development and achievements of the country." Paul: "That’s right, Kyle. Labor Day is not only a time to honor the hard work and achievements of all workers but also a time to celebrate the end of summer with family and friends. Whether you’re hosting a barbecue, heading out on a road trip, or just relaxing at home, we hope you have a wonderful holiday!" Kyle: "Absolutely, Paul. And speaking of road trips, this weekend is also a great opportunity for auto dealers to offer special promotions and kickstart the fall selling season. So if you’re in the market for a new car, this might be the perfect time to get a great deal." Paul: "Definitely, Kyle. And let’s not forget the importance of self-care and relaxation. It’s crucial for staying motivated and productive in our work. So to all our auto dealers and industry friends, make sure to take some time for yourself today - you’ve earned it!" Kyle: "For sure, Paul. And as we wrap up our Labor Day podcast, we want to extend a huge thank you to all the auto dealers and workers who keep this industry moving forward. Your hard work and dedication do not go unnoticed." Paul: "Absolutely, Kyle. Enjoy your well-deserved day off, and here's to a successful fall season ahead!" Kyle: "And that’s a wrap on this special episode of The Automotive Troublemaker. Thank you all for tuning in. If you enjoyed this episode, please don’t forget to subscribe, rate, and leave a review. We’ll be back next week with more exciting content. Until then, take care and stay safe!" Paul: "Thanks, everyone! Happy Labor Day!" [Closing Jingle] [Background Music Ends] Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: <a href='https://www.linkedin.com
Sat, September 02, 2023
Cruising into Labor Day Weekend With Another Inspiring Dealer Story AND Chat GPT Tips From Our Writers
Shoot us a Text. Serving a community near Fort Cavazos, Cleo Bay Subaru of Killeen fully understands the importance of supporting our men and women in uniform . 🎖️ They recently donated a substantial $16K to Wreaths for Vets , a nonprofit dedicated to honoring fallen soldiers. The contribution will not only fund new festoons for the more than 14,500 heroes resting at the Central Texas State Veterans Cemetery but also create a facility on the property to store all the wreaths. We break it down today on the show... Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, September 01, 2023
Ford Borrows And Pays, A Fresh Tesla, Heisman House GlowUp
Shoot us a Text. Smell that fresh September air with us this morning as we talk about Ford’s moves to borrow and then spend. We also take a look at the newly refreshed Tesla Model 3, as well as Nissan’s continued play on the successful Heisman House campaign. Here are two stories that we can’t help but connect. Within a two week period, Ford has obtained a $4B line of credit and subsequently made the first official counteroffer to the UAW which entails an immediate 15% pay raise and increased benefits. According to an SEC filing, the credit agreement filed Aug. 17 and posted Aug. 22 as the company plans ahead for ‘uncertainties’ Ford spokesman T.R. Reid told Automotive News. "This facility gives us additional working capital flexibility on top of our already strong liquidity position to manage through a variety of uncertainties in the present environment. Especially over the last several years, we've been deliberate in maintaining a strong cash and total liquidity position so we can run the business as it is today and invest in the business that we envision." Meanwhile, Ford has been the first of the Big 3 to offer a contract to the UAW that includes a 15% pay increase, raising workers' pay from an average of $78,000 in 2022 to $92,000 in the first year of the contract, including overtime and bonuses. UAW President Shawn Fain wasted no time, immediately criticizing Ford's offer, stating it "not only fails to meet our needs, it insults our very worth." Tesla has officially revealed the refreshed Model 3, codenamed “Project Highland,” in Europe, shortly after leaked photos surfaced online. The revamp includes a sleeker front-end design, an increase in screen space with a new rear display, and improved range. Although the design largely mirrors the current front-end modification removes a bulbous bump, making it appear more refined. Other improvements include a new rear 8-inch touchscreen, deleted stalks on the steering column, ventilated front seats controllable via Tesla's phone app, cushier rear seats, a 17-speaker sound system (up from 14), improved Bluetooth microphone performance, better Wi-Fi and Bluetooth connectivity, quieter interior, customizable interior ambient lighting, and a larger rear trunk. Nissan's "Heisman House" is in its 13th year and has been a fun marketing mix celebratin
Thu, August 31, 2023
E-Signatures OK For Car Deals, Charge Companies Need A Boost, EV Credits Piling Up
Shoot us a Text. We give August a kiss goodbye as we set our sights on a super September. Today we’re talking about a new law favorable to home delivery, charging companies in a tight spot, as well as a new EV credit in Colorado. Show Notes with links: After facing suspension of their dealer license earlier this year, Carvana has successfully promoted legislation in Illinois allowing vehicle home delivery and online sales procedures, including e-signatures. The legislation was passed unanimously in the Illinois state Senate in March and the state House of Representatives in May, with Carvana thanking Illinois customers and legislators for their support in modernizing existing laws. The legislation specifies that dealers may deliver vehicles to a customer's residence if requested in writing, and the date of sale is considered to be when the vehicle buyer signs an application for vehicle title. It also allows esignatures. The new legislation goes into effect Jan 1, 2024 EV charging networks ChargePoint and Blink Charging are facing financial difficulties with less than a year of cash left, as automakers, frustrated with poor charger reliability, start creating their own networks, joining forces with Tesla. Both ChargePoint and Blink Charging are experiencing increased cash burn due to operating losses and are working on strategies to slow down cash burn and generate earnings in the future as their business models heavily rely on equipment sales The unreliable and unavailable charging has impacted sales and perception of EVs, leading automakers like Ford and GM to enter agreements with Tesla to use its Superchargers. Despite past partnerships between legacy charging networks and automakers, the lack of charging station availability and poor reliability of public charging have led to a decline in customer satisfaction and an increase in charging attempts failures Amidst the struggling demand, new EV credits are piling on in Colorado with the launch of the Vehicle Exchange Colorado (VXC) Program. The program offers a $6,000 rebate to residents who swap their old gas guzzlers for new or used electric vehicles, a move designed to boost the uptake of electric vehicles and reduce greenhouse gas emissions in the state. To be eligible, residents must have a household income below 80% of the area's median income, and the vehicle being turned in must be at least 12 years old or fail an emissions test but still be operational. There
Wed, August 30, 2023
On-Star Intelligence, Tesla’s LA Diner, Brand Beats Performance
Shoot us a Text. The shot clock is winding down on August as we talk about GM’s integration of Google AI. We also talk about Tesla’s charging diner concept, as well as Air B&B’s big shift from performance to brand marketing. Yesterday, GM announced they are now using Google's AI technology to enhance its OnStar safety and connectivity service. This collaboration aims to improve voice recognition, provide turn-by-turn navigation, and enable conversational responses to consumers' questions. Google Cloud's Dialogflow technology, the same technology powers chatbots on GM's corporate and vehicle brand websites, enabling conversational responses to consumer questions has been integrated into OnStar's Interactive Virtual Assistant, which provides turn-by-turn navigation and improves the ability to understand spoken requests. This automation of nonemergency requests allows OnStar advisers to focus on issues that require human intervention. "Generative AI has the potential to revolutionize the buying, ownership and interaction experience inside the vehicle and beyond, enabling more opportunities to deliver new features and services," Mike Abbott, GM's executive vice president of software and services Tesla has received official city approval to build a Supercharger station in Los Angeles that will not only serve as a charging hub but also feature an old-school diner and a drive-in movie theater. The station, potentially named the Diner and Drive-In Movie Supercharger, will have 32 Supercharger stalls, a retro-style diner with roof-top seating, and two movie theater screens showing famous movie clips. Initially presented last year in a Twitter post , the project was approved on July 18, and the initial grading inspection was completed earlier this month, allowing the project to proceed in West Hollywood. Air B&B CMO, Hiroki Asai, is parting ways with performance marketing and doubling down on brand. Shifting budgets to big, bold brand campaigns, focusing on the core of what Airbnb is about - core hosts, primary homes, and guests The new strategy involved developing and highlighting specific features and tools that set its product and experience apart, such as Airbnb Categories, and communicating these differentiators through brand-first campaigns instead
Tue, August 29, 2023
Self Driving Has 2 Court Dates, Dealer EV Bootcamp, Cybertruck Playing Dress Up
Shoot us a Text. It’s Tuesday time, and we’re talking about the industry’s EV ongoings from Tesla’s court dates, one Dealer’s EV Bootcamp, and a little good natured ribbing from one automaker to another. Tesla is set to defend itself in its first trial involving an Autopilot fatality, a crucial test for CEO Elon Musk and the technology he promotes. The first of two trials, scheduled for mid-September in a California state court, will scrutinize a 2019 crash where a Tesla Model 3 veered off a highway, struck a palm tree, and burst into flames, resulting in the death of the owner and serious injuries to two passengers. Tesla denied liability for both accidents, blaming driver error and stating that Autopilot is safe when monitored by humans. Internal emails may reveal what Musk and other officials knew about Autopilot’s capabilities and deficiencies. The company clearly stated "There are no self-driving cars on the road today." Another unique point of the case is that it positions Musk as the leader of the engineering team behind the Autopilot technology, challenging his reputation as an engineering leader. This highlights Musk's direct involvement and potential accountability in the development and deployment of the Autopilot system. Late last week Elon Musk's livestream of a drive using Tesla's Full Self-Driving (FSD) Beta v12 was underwhelming due to poor video quality and operational flaws, including driving in the wrong lane and trying to pass a red light. Despite Musk's previous hype and over 10 million views, the video did not successfully showcase the FSD v12's effectiveness, highlighting ongoing challenges with Tesla's self-driving technology. As the emergence of more and more EVs continues, many progressive Dealers are leaning into the trend preparing themselves, their teams, and their communities for whatever is in store. One Dealer at the forefront is Liza Borches, owner of Carter Myers Automotive, a 23+ store group headquartered in Charlottesville, VA who executed a great idea last week…an EV Bootcamp In what we’ll consider a nod to some great trucks, a Tesla Cybertruck was spotted with a wrap resembling a Toyota Tundra, following a previous instance of a Cybertruck wrapped to look like a Ford F-150. Is Tesla trolling competitors, testing wraps, or innocently camouflaging the vehicle before its official launch? CEO Elon Musk has previously expressed frustration with traditional pickup truck designs and justified the radical design of the Cybertr
Mon, August 28, 2023
Strike Vote, Common Sense Hybrids, Supercharger Screens, Streetwear
Shoot us a Text. We’re doing a burnout into the last last of August as we approach the end of Summer 2023. Today we’ll give you a lightning strike update on the UAW. We also talk about the rise of hybrids, the first sighting of a Supercharger with a screen, as well as an unusual brand collab. ICYMI: UAW members at Detroit 3 have authorized a strike if contract talks break down by September 14. About 97% of votes were in favor, but UAW President Shawn Fain clarified the goal is to achieve good contracts, not necessarily to strike. In what seems to be actual common sense , Ford, Toyota, and Stellantis plan to build and sell hundreds of thousands of hybrid vehicles in the U.S. over the next five years, as an alternative for customers seeking more sustainable transportation but not ready for full electric vehicles. This comes as Dealers are facing a lack of demand from less affluent customers, they are increasingly turning away EV inventory to avoid unsellable stock. Scott Kunes, the chief operating officer of Kunes Auto and RV Group, which sells Detroit brands as well as Nissan and Mitsubishi in the Midwest recently told Insider , "We have turned away EV inventory,". "We need to ensure that we have a good turn on it." S&P Global Mobility estimates that hybrids will account for 24% of U.S. new vehicle sales in 2028, pure electrics 37%, and combustion vehicles, including mild hybrids, nearly 40%. A new video reveals Tesla's Supercharger V4 with tap and go payment in action for the first time, although Tesla has not officially unveiled the charger and its specs The video was posted by James Court, CEO of EVA England, an online community who supports EV drivers in the UK as he was invited to try the new publicly available charger in Tottenham on Ravenside Retail Park near London The Supercharger V4 has a 350 kW charging capacity and includes a screen and a payment system for the first time, a notable change as Tesla previously managed payments via its app. Here's a story summar directly from Retail Wire : “ Lockheed Martin, the American aerospace and arms company, has surprised many as it appears to have its logo featured on a streetwear collection being sold online in South Korea. The collection, including shirts, h
Sat, August 26, 2023
A Cancer Center a Long Time In the Making
Shoot us a Text. Today we have our writers Chris and Kristi on the show to talk about a promise made by a now-dealer to serve others in the way he was served. Steve Fox , the President and CEO behind Fox Auto Team in El Paso, is anything but your typical car guy. More than two decades ago, he battled severe tongue and throat cancer, a fight that ignited his passion for making a difference. Share your dealer story at https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, August 25, 2023
Parts Makers Beware, F150 With Earplugs, Too Early For Pumpkin Spice?
Shoot us a Text. We’re kicking off the one week countdown to the end of August as the one and only Glenn Lundy joins the show to talk about the potential effect of a strike on auto parts manufacturers. We also talk about a very unique problem with some F150s as well as asking the question, ‘When is it too early for pumpkin spice?’ Show Notes with links: There is one group we mentioned on this show who may end up being the most affected by a potential UAW strike: U.S. auto parts manufacturers . Already grappling with pandemic-related strains and semiconductor shortages, these manufacturers face potential cash shortages and daunting production challenges in the wake of looming labor disruptions. Many smaller parts manufacturers might face a cash crunch or difficulties in restarting production due to tightened credits by regional banks. The auto parts manufacturing industry, which employs 4.8 million people, is pivotal to the supply chain and any disruption could halt assembly lines. Some suppliers like Twin City Die Castings Co anticipate revenue hits ranging from 10 to 20%. Many companies may be further at risk as production volumes remain below pre-pandemic levels and costs rise. About 30% out of 400 companies studied by Harbour Results are considered "unbankable" due to high debt levels and unprofitability. Here's a unique issue for F150 owners: numerous reports have detailed an ear-piercing static sound emanating from their truck's audio system. Last fall, while driving his 2022-model-year F-150 pickup, Phil Floraday experienced a jarring noise from his truck's audio system, akin to glass breaking, followed by intense static. Days later, his ears still rang. Ford has since identified the issue as linked to the amplifier in the sound system and released a technical service bulletin for vehicles from the 2021-23 model years. They have issued a service bulletin for a software update that either has to be done at a dealership or downloaded over the air if applicable. Pumpkin Spice is a blend of cinnamon, nutmeg, ginger, cloves, and sometimes allspice. However, its meteoric rise in popularity began in the early 2000s with Starbucks introducing the Pumpkin Spice Latte in 2003. This drink tapped into nostalgic sentiments and soon ignited a nationwide craze, transforming pumpkin spice from a seasonal baking blend to a cultural phenomenon. As Starbucks marks two decades of its iconic Pumpki
Thu, August 24, 2023
Rio Goes Down River, EVs = Potholes, Placement Over Tradition
Shoot us a Text. It’s a great Thursday to be on a car lot as we talk about Kia’s plan for a send-off of the Rio. We also talk about EV’s effects on road conditions, as well as consumer preferences when it comes to product placement. Show Notes with links: One of the least expensive new cars on the market, the Kia Rio , is set to be discontinued after the 2023 model year. Rio's sales in 2022 were 26,996, marking a 14% drop, and as of July this year, sales have decreased by another 5%. Kia's Monterrey, Mexico plant, where the Rio is manufactured, is set to be retooled for the production of two small electric vehicles. Light trucks, encompassing minivans, crossovers, SUVs, and pickups, made up 79% of all new U.S. vehicle sales in the first half of 2023. Five Most Affordable New Vehicles are now: Mitsubishi Mirage ($19,205), Kia Rio ($20,157), Nissan Versa ($20,763), Hyundai Venue ($23,971), and Nissan Sentra ($23,994). Amidst the rapid adoption of EVs, a recent UK study raises concerns about their potential impact on road health. Researchers suggest that the added weight of BEVs, especially larger models, could lead to more rapid road wear and increased potholes, challenging existing infrastructure and sparking debates on vehicle taxation U.K. newspaper, the Telegraph, with data from the University of Leeds, reported that BEVs cause up to 2.32 times more wear on roads than ICE vehicles, especially those weighing over 4409 On average, BEVs are heavier by about 687 lbs more due to their batteries. The “fourth power formula” suggests that doubling a vehicle’s axle weight can cause 16 times more road damage. As BEVs don't contribute to gas taxes, discussions arise about taxing vehicles based on weight or battery weight. Norway already taxes vehicles at a rate based on their weight. Apart from main roads, residential roads, driveways, garage floors, and public parking garages may also suffer damage from heavier BEVs. The debate on BEV infrastructure needs to consider these aspects in addition to charger availability. A BENlabs survey reveals 52% of U.S. consumers favor TV shows with product placements over traditional ads. This shift comes as ad-free streaming rises and traditional TV ads lose traction. 66% of North American viewers ignore TV ads; many divert their attention during commercials; 39% believe TV ads lack relevance and value; 31% find them repetitive. Top brands in movie placements inclu
Wed, August 23, 2023
VinFast Pops (again), EV To Solve Affordability, Going To The Mall Is Back In Style
Shoot us a Text. Welcome to Wednesday as we shift gears into the last week of the month. Today, we’re talking about Vinfast’s continued market climb, the impact of EVs on new car affordability and how malls are back. Show Notes with links: Just when we thought the valuation rollercoaster couldn't get any more wild, VinFast's shares stunned the market , more than doubling since their Wall Street debut. The spike comes on the heels of an announcement about South Korea's Star Group Industrial's plans for a new Vietnamese factory. After its introduction to the market at $22 a share last week, the stock price reached $46.98, settling at $36.72 by market close. Marking a whopping $95 Billion Dollar valuation VinFast's stock was prominently featured on Stocktwits' "Trending" list on Tuesday, indicating heightened interest from individual investors. A new study reveals a potentially surprising hero in the affordability challenge: EV leasing. New research from Energy Innovation shows drivers can save over $400 monthly compared to traditional vehicles, thanks to government incentives and reduced fueling and maintenance costs. For instance, leasing a Tesla Model Y is around $425 cheaper per month than leasing a gasoline-fueled BMW X4. Similarly, leasing a Kia Niro EV saves about $367 per month compared to its gasoline version. The $7500 IRA tax credit is the major contributor to lower payments and taxes paid Even when the tax credit becomes unavailable in the future, leasing an EV is projected to remain a cost-effective choice. This is because EVs generally have lower fueling and maintenance expenses compared to gasoline vehicles. If gasoline prices rise, the cost advantage of EVs would further increase. If you thought malls are dying, think again. Contrary to popular belief, US malls are adapting , not dying, with many seeing higher occupancy and crowds than pre-pandemic. Top-tier malls saw a 12% increase in foot traffic in 2022 compared to 2019, with an average leasing rate above 95%. E-commerce growth complements brick-and-mortar retail; omnichannel marketing drives mall growth. Gen Z, a crucial market segment, is reviving the mall experience, valuing sustainability and in-store luxury experiences. The mall's evolution focuses on community, experience, and soci
Tue, August 22, 2023
Solving Used Car Leasing, Low Priced New Rides, and DVDs in the Mail
Shoot us a Text. Tuesday is coming in hot as we talk about the very present reality of used car leasing. We also talk about the last remaining sub-$20k vehicle as well as the end of a Netflix customer experience that paved the way for streaming as we know it. Show Notes with links: Used car leasing has always been an interesting idea , but carried too many risks. It’s hard enough to predict the residual value of a new vehicle, alone a 4-5 year old vehicle. But predictive analytics combined with today’s wild market is helping used car leasing gain traction. Used car leasing has the opportunity to protect a lender’s risk profile and support a customer in a time where affordability is a major consumer concern. Rusty West, CEO of MarketScan, believes used-car leasing can alleviate the burden of consumers taking large, high-interest loans. “If we continue to shove customers into 84-month and 96-month auto contracts, then we are going to create a difficult environment,” West says. “We must get back to what’s good for the whole automotive ecosystem. Focus on getting back to a healthy transaction.” “Used-car leasing remains in the minority, but it is gaining traction. We think we figured it out. Now it’s a question of getting the word out.” - Mark Chandler, Credit Union Leasing of America. As the US auto market evolves, the once common sub-$20,000 new car is nearing extinction . While SUVs and trucks dominate American choices, the compact Mitsubishi Mirage holds the title as the last car below this price point. The Mirage is the last new vehicle priced under $20,000, but Mitsubishi will be discontinuing the model over the next few years Five Most Affordable New Vehicles are now: Mitsubishi Mirage ($19,205), Kia Rio ($20,157), Nissan Versa ($20,763), Hyundai Venue ($23,971), and Nissan Sentra ($23,994). Remember when Netflix was just a DVD mailing service? Well, as that part of its business ends, the entertainment giant is giving a little extra love to that customer base and will send subscribers up to 10 DVDs of their choice. The final mailing will be on September 29th and current DVD subscribers can choose up to 10 extra titles to be included. Normally, customers are allowed only 8 discs. Since shipping DVDs began in March of 1998, Netflix says it has mailed out more than 5 billion discs to more than 40 million customers. Netflix co-CEO Ted Sarandos said that running the busine
Mon, August 21, 2023
Simplicity, Megawatts, and Messi
Shoot us a Text. Today we’re welcoming Kyle back from a well deserved family vacation as we talk about GM’s labor moves in the name of ‘simplicity’. We also cover the very first electric Lambo, as well as the massive brand power behind one man. GM is working toward keeping things simple as it unveils plans to reshape its engineering workforce. This initiative, part of a broader strategy, seeks to align the automaker's resources with its evolving vision for the future. General Motors (GM) intends to cut around 200 engineering positions while affected employees will have the chance to transition to other roles within the company. GM's "Winning with Simplicity" strategy, introduced by CEO Mary Barra, aims to decrease design and engineering expenses and simplify vehicle manufacturing processes. The company's goal is to achieve $2 billion in cost reductions by the end of 2024, with an additional $1 billion in fixed cost cuts identified. Approximately 5,000 salaried workers opted for a voluntary buyout this year, leading to savings of about $1 billion and avoiding layoffs. Late last week, Lamborghini unveiled their first EV concept , the Lanzador which is a fusion of supercar aesthetics and SUV functionality. As the brand's first foray into the electric realm, the Lanzador promises staggering power, eco-conscious interiors, and a commitment to a sustainable future. The company is calling the Lanzador, a 2+2 concept, combining elements of a supercar and SUV, boasting a staggering power output of 1,341 horsepower and dual motors powered by a high-performance battery is capable of putting out a megawatt of power. The vehicle's design draws inspiration from the Revuelto super sports car and the Urus, featuring unique proportions, Gandini arches, and a Y-shaped bodyside accent. The interior offers a "pilot" concept with a Y-shaped dashboard, digital instrument cluster, and extensive use of eco-friendly materials, including Merino wool upholstery and sustainably tanned leather. The Lanzador is slated to be released in 2028 amid the company’s state goal of fully electrifying every vehicle in its lineup in some way by 2024 In what might be a “too soon” moment for Kyle, Soccer Phenom Lionel Messi has transformed Major Le
Sat, August 19, 2023
Just In Time To Uphold A Community In Peril
Shoot us a Text. Today we have our writers Chris and Kristi on the show to talk about what other retail industry steps up like Auto in the face of a disaster. We give our best guesses and discuss a major move to help Hawaii by one new-to-the-area Dealer. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, August 18, 2023
VinFast Dealerships, Maple Leaf Battery Factory, Jack Dorsey deletes Instagram
Shoot us a Text. We’ve got that Friday feeling as we skid into the weekend talking about VinFast’s dealership thinking, a new Canadian battery plant, and the Twitter founder says goodbye to Instagram. Show Notes with links: Vietnamese EV maker VinFast, whose market valuation briefly surpassed that of Ford and GM when it debuted earlier this week, but fell by 33.6% since, surprised some as it announced a shift in its U.S. distribution strategy, moving away from Tesla's direct-to-consumer model to include selling through dealers. The company has already shipped only 3,000 vehicles to North America and has been plagued with quality and delivery issues and are currently building a US factory U.S. dealers are intrigued but seek more details about VinFast's sales strategy, dealer requirements, parts distribution, and vehicle warranty. CEO Le Thi Thu Thuy of VinFast: "Opening our own stores is great but it takes a lot of time. Joining forces with other partners to go faster has always been our nature." Lots of Dealers weigh in throughout the Auto News article expressing a variety of concerns and optimism Andrew DiFeo, dealer principal at Hyundai of St. Augustine:"The first thing you have to look at is are you going to be around in five years? That's a big concern." TEXTED TO US SEPARATELY : “As established brands with loyal customers come out with competitive product , the newer entrants to the market will have an even harder time gaining market share. The car market in the United States is the most mature in the world. The pie is not getting bigger. We really don’t need more brands….if anything we need less “ George Glassman, president of Glassman Automotive Group:"Is there room for more brands? Yeah, there probably is. It's just too early to tell." "I'd need to see more before I could make an intelligent decision. Ford, alongside partners EcoPro BM Co. and SK On Co., is investing over $890 million to establish a battery materials plant in Bécancour, Quebec. The facility, named EcoPro CAM Canada is set to open in 2026. This marks Ford's inaugural investment in Quebec, aiming to produce materials for Ford EVs and contribute to North America's EV ecosystem. According to IRA tax credit rules, EVs and batteries produced in North America (including Mexico and Canada) may qualify for significant tax breaks At 1am last night, Twitter founder Jack Dorsey tweeted “deleted my instagram account after 12 years. Was one of the first 10 accounts
Thu, August 17, 2023
New EV Adoption Data, Texas Propels Tesla, Service Advisors In The Spotlight
Shoot us a Text. It’s a perfect Thursday to love people more than cars as we have the CEO of the CMA group, Liza Borches as our guest host to talk about the new consumer data about EV adoption sentiment. We also talk about Texas’ landmark charging requirement, as well as one Service Advisor who made the Auto News 40 Under 40 list. Show Notes with links: According to new studies by J.D. Power and EY , stated consumer interest in battery-electric vehicles (BEVs) is moving forward, despite charging infrastructure challenges. The research indicates a significant shift in buying intent, with BEVs predicted to capture 27% of auto sales by 2026, emphasizing the evolving landscape of the automotive industry in the midst of persistent safety concerns. J.D. Power's study found that 21% of respondents faced issues charging their BEVs at public stations, while only 3% of Tesla owners reported such issues. Tesla leads in "charging satisfaction", but its performance is declining due to sales outpacing charger availability. The EY study highlights that 57% of respondents are concerned about the dangers of home charging, particularly fires in garages. Steve Patton of EY finds this level of fear surprising. Data from Wards Intelligence reveals that 6.9% of vehicles sold in the first half of 2023 were BEVs, with luxury vehicles making up about 75% of these sales. 81% of current BEV owners are likely to buy another BEV Texas is moving forward with a groundbreaking decision to mandate Tesla's technology in EV charging stations for federal funding eligibility. This move, closely watched by other states, underscores Tesla's growing influence in shaping the U.S. charging infrastructure, despite challenges from competitors and initial resistance. The federal program requires the CCS plug at a minimum but allows states to add additional requirements before distributing funds locally Despite opposition from some charging companies saying that the mandate would slow down the expansion of infrastructure, Texas' commission unanimously approved the plan, aiming to cover at least 97% of the state's EVs with fast charge ports. Texas, the largest beneficiary of a $5 billion program for U.S. highway electrification, is setting a precedent that other states are watching closely CMA Valley Subaru Service Manager Carmen Hinton was featured on the homepage of today’s Automotive News as one of the
Wed, August 16, 2023
VinFast Burns Rubber, Buffet Steps Back From GM, Farley’s Charging Epiphany
Shoot us a Text. Welcome to Wednesday as Steve Greenfield joins Paul on the show again. Today they’re talking about VinFasts debut on Nasdaq, Warren Buffet divesting from GM big time, and Jim Farley’s revelations from his recent charging road trip. Show Notes with links: Vietnamese electric-vehicle maker, VinFast, has made a remarkable debut on the Nasdaq, skyrocketing its market valuation to $85 billion. This surge propels it past automotive giants like Ford and General Motors. The company's shares soared by over 270% from its SPAC's IPO price, marking it as this year's top-performing de-SPAC debut on a U.S. exchange. VinFast is characterized as a low-float company, with only a limited number of shares (1.3 million) available for trading post-redemptions. This makes the stock susceptible to significant fluctuations. Pham Nhat Vuong, the founder of VinFast and Vietnam's richest individual, holds a dominant control over the company, owning about 99% of it. Warren Buffet’s Berkshire Hathaway has significantly reduced its stake in GM by 45%, slashing its shares from 40 million to about 22 million. The move, revealed in a recent SEC filing, comes amidst growing investor concerns and GM's notable stock fluctuations. The motivation behind the sale remains undisclosed. The firm's GM shares were cut from approximately 40 million to around 22 million, as revealed in a quarterly filing with the U.S. Securities and Exchange Commission GM chose not to comment on the stake reduction, and Berkshire Hathaway also remained silent on the matter. The exact reason for Berkshire Hathaway's sale remains uncertain, with possibilities ranging from concerns about UAW risks, waiting for stock rallies, or simply wanting to reallocate capital. In the same filing, Berkshire Hathaway disclosed new investments in various homebuilder companies. Ford CEO Jim Farley recently took a road trip in the F-150 Lightning electric truck along Route 66, testing the vehicle's capabilities. During his journey, Farley encountered challenges with charging the Lightning, highlighting the need for improvements in the customer experience. In a video posted on ‘X’ Farley described the charging issues as a "really good reality check" on the difficulties customers face with public chargers. To address these challenges, Ford is collaborating with Tesla to give Ford vehicles access to over 12,000 Tesla Superchargers. Additionally, Ford's certified dealers are insta
Tue, August 15, 2023
Biden Weighs In On Strikes, Ford Bites the Apple, Hardware Standard - Subscription Optional
Shoot us a Text. Tuesday is already moving as we talk about the President’s comments about the ongoing contract negotiations between the UAW and Big 3. We also talk about Ford’s new executive from Apple and his perspective on putting subscription ready hardware in every vehicle. "I’m asking all sides to work together to forge a fair agreement," President Biden said in a statement as he urged union auto workers and Detroit's Big Three automakers to reach a new agreement before their contracts expire next month. Biden stressed the need for a middle-class-supportive contract amid industry tech shifts, while the UAW, representing 150,000 workers, considers a strike if no agreement is reached by September 14, with UAW President Fain pushing for better wages in talks with Biden and lawmakers. A potential strike could result in significant financial losses for the automakers, with Deutsche Bank estimating a hit of $400 million to $500 million per week of production for each affected automaker. Ford has appointed former Apple executive Peter Stern as president of its new business unit, Ford Integrated Services, to lead the company's customer experience strategy. Stern was vice president of services at Apple and oversaw Apple TV+, iCloud, Apple News+, Apple Books, and Apple Arcade, as well as its ad and cloud services Stern's team at Ford will unify hardware, software, and services across three units: Ford Blue), Model E, and Ford Pro, while also managing services marketing, the Ford Next venture studio, and "out-of-vehicle" experiences like utilizing car cameras for non-driving activities. “Everyone is so focused on the EV transformation,” Ford Chief Executive Jim Farley said on a call with reporters, “but I keep saying the biggest change in our industry is to go to a digital product and physical services.” He also added that “Our industry is littered with bad choices about subscription services, and that is not the direction we’re going in,” Ford reported over 550,000 paying subscribers to its software and services, emphasizing a move away from charging for once-standard items like heated seats. Stern isn’t wasting any time: It's going to be 'hardware standard - functionality optional' as Ford is making its hands-free highway driving hardware, BlueCruise, standard on many Ford and Lincoln models, reflecting a broader industry shift towards subscr
Mon, August 14, 2023
Record Auto Loan Debt, Union Labor and Affordability, Rivians Burning Tires
Shoot us a Text. We’re power sliding into Monday as we talk about some record auto loan dept numbers. We also contrast that against the ongoing labor contract discussions. And did you know Rivian’s are burning through rubber at an alarming rate? A record $1.5 trillion in auto loan debt looms over the U.S ., with over 100 million Americans having some sort of auto loan. Continuing factors like residual pandemic effects on supply chains, the Fed’s increasing rates and other economic shifts have escalated car ownership costs, leading to increased concerns about lending practices and growing consumer dissatisfaction. In 2023, the average monthly loan payment for new vehicles increased to $725…up from $650 in 2022. Used monthly payments are also up 2-3% YoY to $516 According to a CNN article , new auto loan delinquencies are rising and reached 7.3% in Q2 up from 6.9% in Q1. Additionally, Moody’s warns that new credit card and auto loan delinquencies will both continue “rising materially,” peaking in 2024 at between 9% and 10%, compared with 7% pre-Covid. Stellantis' ambitious goal to produce a $25,000 EV is colliding with the United Auto Workers union's demands for better wages and benefits. As industry experts weigh in on the feasibility of such a price point, tensions rise over balancing affordability, profitability, and worker compensation in the evolving EV market. Stellantis' CEO Carlos Tavares emphasizes the importance of a $25,000 EV for job protection and absorbing additional costs, while UAW President Shawn Fain counters, stating, "Stellantis' business model is broken, and until they fix it, they'll never hit that $25,000 target." Industry experts, like Doug Betts of J.D. Power, suggest that achieving a $25,000 EV might require significant cost reductions and minimalistic designs, similar to Tesla's interiors Stephanie Brinley from S&P Global Mobility and Sam Fiorani from AutoForecast Solutions believe that producing a profitable EV at this price point is a long-term goal, possibly a decade away, and that immediate profitability for legacy automakers is unrealistic. The Rivian RT1 and R1S pickups that have progressive styling and a lot of power are receiving rising complaints on many Rivian driver’s forums about the rate at which they are burning through tires with some owners having to replace tires rated by the manufacturer for 50k miles, as early
Sat, August 12, 2023
Female Technicians By Way of the Sheriff
Shoot us a Text. Today we make our head writer Chris Reeves cry on the show...ok he kind of made himself cry...as we talk about a great story of redemption by way of the Sheriff's office and the service department. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, August 11, 2023
Way-Mo Autonomy in San Fran, Ford Software Profits, Women Spending The Big Bucks
Shoot us a Text. We’re warming up those weekend engines as we fly into Friday talking about a big opportunity for autonomy in California. We also talk about Ford’s plans to profit from pro software as well as the big boom in women’s spending over the Summer. Show Notes with links: The California Public Utilities Commission approved GM's Autonomous Vehicle company, Cruise and Waymo can now add cars and charge for rides at any time in San Francisco. This decision paves the way for broader autonomous vehicle operations throughout California and potentially other markets, despite ongoing concerns from residents and city officials about safety and readiness. Despite many advancements, safety concerns persist. San Francisco agencies reported nearly 600 unexpected stops for driverless vehicles and around 50 instances of interference with first responders. Activists in San Francisco have recently disrupted Waymo and Cruise vehicles by placing traffic cones on them to block sensors. Waymo announced plans to start charging for rider-only trips in San Francisco soon, while Cruise's response is still awaited. Both companies have apps with waiting lists for potential riders. According to a top executive, Ford plans to integrate enhanced software into its Ford Pro commercial vehicle business, aiming to increase revenues by $4,000-$5,000 per vehicle in the future. Navin Kumar, CFO of Ford Pro, highlighted that the company will boost revenue through software- and data-driven fleet services, safety/security services, partial vehicle autonomy, and insurance. At a recent J.P. Morgan investor conference, Kumar mentioned that Ford's capability to profit from these services will be amplified mid-decade with the launch of next-gen electric commercial vehicles featuring a new digital "intelligence" platform. By 2026, Ford Pro aims to double the percentage of connected vehicles to around 60% and triple the percentage of vehicles with paid software to approximately 36%. In a show of brutal-pink retail force , women this summer propelled major commercial successes, including the "Barbie" movie, Beyoncé's "Renaissance Tour," and Taylor Swift's "Eras Tour." Their collective spending, dubbed the "women's multiplier effect," showcased the significant economic influence of female consumers in the U.S. economy. The "women's multiplier effect" saw groups of women attending events multiple times, amplifying o
Thu, August 10, 2023
The Lows and Highs of Used, EV Escalade Is Coming, Customer AI Reviews
Shoot us a Text. Today we’re talking about the crazy changes in sub-20k vehicles on the market since 2019. We also cover the reveal of the new Escalade EV as well as a savvy ecomm company working to make consumer reviews easier to digest. Consumers are realizing something Dealers have known for a while: finding a used car under $20,000 is no easy feat . A recent study highlights the dramatic changes in the used car market, with budget-friendly options dwindling. In 2019, nearly 50% of the market comprised sub-$20,000 cars; by 2023, this dropped to less than 13%. A study from iSeeCars.com revealed that popular used car models like Camrys and Civics are now up to $8,000 more expensive than in 2019. In 2019 the avg cost of a used Ram 1500 was 27,324. In 2023 it’s $42,881 (+56%) A Corolla jumped almost 50% from ~14,200 to ~21,300 A Honda Civic is up over 46% ~16,500 to ~24,000 George Chamoun, CEO of online auction company ACV said on an earnings call yesterday that industry trends point toward an ongoing recovery in market conditions in auto sales over the next few years. Reiterating their commitment to heading toward an all-electric future, Cadillac revealed the 2025 Escalade IQ at a launch event yesterday . This revamped version of the iconic SUV, priced at around $130,000, boasts a 450-mile range and is working to tie the brand's storied legacy with state-of-the-art tech. GM President Mark Reuss said at the event, "Escalade has defined what a full-size luxury SUV is supposed to be. From the get-go, it was the cream of the crop. It's what everybody wanted. Almost immediately, it became a status symbol in the same way the best Cadillacs were decades before. The Escalade IQ is riding on a wave of all that history, all that cachet and all of that greatness, and only now it's in a fully electrified package." It’s 4 inches wider and a foot longer than a standard Escalade Output of as much as 750hp, 0-60 in 5 seconds, and has a 55” curved display borrowed from the luxury Celestiq Execs confirmed that the new model will be sold alongside ICE models on Dealership lots Online technology retailer Newegg is working to transform reviews in e-comm with its latest AI-driven feature. The tech retailer now employs generative AI, ChatGPT, to distill customer reviews into concise "Review Bytes" and det
Wed, August 09, 2023
Carvana’s Value Tracker, Titan Tumbles, Crowdfunded Retirement
Shoot us a Text. Welcome to Wednesday as we talk about a very practical consumer communication tool that was released by Carvana. We also cover the end of the Nissan Titan as well as one loyal worker being given a well-deserved crowd funded retirement gift. We could talk about how UAW President Shawn Fain called Stellantis’ contract proposal ‘trash’ or how Honda’s quarterly profits are up 78% year over year, but given you already know that, we’re going to keep moving into some more practical stories this Wednesday Carvana has introduced a new tool, Carvana Value Tracker , allowing consumers to obtain and monitor their vehicle's valuation based on changing market conditions. The tool uses Carvana's proprietary technology and data from nearly 20 third-party sources to provide real-time vehicle worth. Andrew Dickerson, Carvana’s director of engineering and special projects, emphasized the tool's aim to demystify car selling by providing actionable insights into a vehicle's value. “The car in a customer’s driveway is likely one of the largest assets in their portfolio, and yet most have no idea at any given moment what that asset is worth. With Carvana Value Tracker, we are demystifying car selling by offering insight into a customer’s car’s value at any point in time, in a way that is actionable should they choose to sell.” The tool will soon feature biweekly updates and aims to provide more specific insights tailored to individual vehicles. The Titan has fallen as Nissan announces the discontinuation of its full-size pickup after 2024. Unable to rival giants like the Ford F-150 and Chevrolet Silverado, the Titan's sales never met expectations. The Titan, launched in 2003, never achieved its sales target of 100,000-200,000 units per year, with its highest sales reaching 87,000 and dropping to just 15,063 units in 2022. The Canton, MS plant, where the Titan is manufactured, will be retooled for electrified vehicles, with no expected job losses. Nissan had previously attempted a deal with then-Ram owner FCA to make the Titan a rebadged Ram 1500, but the deal fell through. While the Titan struggled, Nissan's midsize Frontier truck performed better, with sales of 76,000 in 2022, indicating a stronger position in the midsize pickup segment. After going viral on TikTok last year for receiving a goodie bag of some candy and just one movie ticket as a reward for never missing a day of work in 27 years, Burger King employee Kevin Ford was <a href='https://retailwire.com/a-burger-king-worker-who-says-hes-never
Tue, August 08, 2023
GM’s Growing Workforce, Minority Dealer Growth, Carless Communities
Shoot us a Text. It’s time to get after a Tuesday as we talk about GM’s statement on increasing its workforce in 2024. We also cover substantial growth and performance among minority dealers as well as a new community designed for zero cars. Amid the industry's move towards electric vehicles, GM pledges to increase its workforce by 2024. This commitment emerges in the backdrop of contract discussions with the United Auto Workers union and prevailing apprehensions about the diminished labor demands for EV manufacturing. GM manufacturing chief, Gerald Johnson, said on Friday he did not agree it would need less workers for EV production despite Ford’s statements last year that EV’s would require up to 40% less labor to build This conversation comes as contract negotiations between the big 3 and the UAW are in full swing For the first time in more than a decade, the U.S. auto industry has seen a significant rise in minority-owned dealerships, with Stellantis and General Motors leading the charge. In 2022, 110 new minority-owned stores were added, reflecting a growing emphasis on diversity in the automotive sector. Stellantis added 32 minority-owned stores in the U.S. in 2022, while GM added 26 Minority dealership numbers have been recovering since the 2008-09 recession, with a significant drop from 1,805 in 2005 to 875 in 2011. "As leadership continues to stay stable, meaning the presidents and CEOs of these entities have not switched hands, or retirements or things like that, we do tend to fare well when that happens," Damon Lester, Vice Chair of NAMAD told Automotive News. In 1972, GM pioneered the introduction of a minority dealer program. The company has highlighted that its minority dealerships, encompassing African American, Asian, Hispanic, and Native American retailers, rank among the top performers in its network. "GM is very proud of our accomplishments with the Minority Dealer Development Program," Tia Hardman, director of dealer diversity relations for GM, said in a statement to Automotive News. "We are dedicated to growing a performance driven, customer-focused and profitable dealer network by attracting highly qualified minority dealer candidates to ensure that our retailers reflect the communities and the customers that we serve." Culdesac Tempe, Arizona's pioneering car-free community , is now open, offering a unique urban experience. Designed for resident
Mon, August 07, 2023
Service Soars, Penske Fills The Best-list, Is Chat GPT Getting Dumber?
Shoot us a Text. As many kids start school, there is still plenty of summer to go as we talk about soaring service department numbers. We also talk about Penske taking an early victory lap regarding the best places to work list, as well as an interesting development in ChatGPT's ability to do math. Show Notes with links: With consumers keeping their cars longer due to affordability and availability issues, the six largest publicly traded groups are reporting an 8.2% increase in YoY sales logging $3.9 B in revenue. AutoNation reports a 9.1% first half increase of same store sales as CEO Mike Manley credits a large existing customer base who know the AutoNation brand, extensive service bay and technician capacity and customers keeping and servicing their vehicles longer. Lithia is up 5.8% for the quarter and COO Chris Holzshu made similar comments in a recent investor call, “With the average age of vehicles rising, coupled with the increasing complexity of new vehicles, our team of certified, factory-trained technicians are working hard to deliver on the massive demand for services from our customers,” he says. Penske 10.7, Sonic 8.9, Asbury 6.2, Group 1 reported 9 consecutive quarters of growth Penske Automotive Group is taking an early victory lap as they announce a significant achievement as 44 of its dealerships are named among the Best Dealerships to Work for in 2023 by Automotive News. The annual list, now in its 12th year, recognizes top dealerships nationwide for their exceptional work environments and community engagement For inclusion on the list, dealerships undergo a thorough nomination procedure. Selection of winners hinges on feedback from employee surveys, active community participation, and deliberate actions to convey gratitude and acknowledgment in the workplace. The full list will be released in October. Is ChatGPT getting dumber ? This is a question asked in a WSJ article as the groundbreaking language model has become worse at performing certain basic math operations, according to new research by Stanford University and UC Berkeley. The research tested two versions of ChatGPT, 3.5 and 4.0, and found that the latter's accuracy in identifying prime numbers dropped from 84% to 51% between March and June. Six out o
Sat, August 05, 2023
Shopping for a cause...one Dealer's Amazing Campaign Execution
Shoot us a Text. Today we're in the studio with our head writers Chris and Kristi talking about Walser Automotive's recent campaign. The Walser Foundation is living up to its motto — “Our cars drive change”. Their successful annual initiative “ Shop for a Cause ” combines car buying with philanthropy, allowing customers to contribute to their favorite nonprofits while purchasing a vehicle. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, August 04, 2023
More Money - Less Work, Carvana Same-Day Delivery, Jailbroken Tesla
Shoot us a Text. It’s a fresh Friday to get out there and “move some lives forward” (Thanks Liza Borches for that phrase). Today we’re talking about the released UAW demands and GM’s response. We also cover Carvana’s move to same-day delivery, as well as a jailbreak of Tesla’s infotainment system. Citing the 40% rise of CEO salaries for the Big 3, Shawn Fain, President of the United Auto Workers union announced the union would be seeking wage increases of a 20% raise upon ratification, followed by 5% raises annually over the four-year period. "The CEOs of the Big 3 over the last four-year agreement have enjoyed a 40 percent increase in pay on average, so I don't think our workers asking for their equitable share, when inflation's gone up almost 20 percent in the last four years, I don't think it's asking a lot for our members to look for their fair share." Also included in the proposal is a proposed 32 hour work week with a full 40 hours worth of pay saying “I think it will create more jobs, more opportunities for people to get their share in the economy.” GM released a statement pushing back against the broad demands saying that the demands "would threaten our ability to do what's right for the long-term benefit of the team." They also alluded to the threat of many new automakers positioning for market share by saying "We think it's important to protect U.S. manufacturing and jobs in an industry that is dominated by non-unionized competition.” Carvana has begun offering same-day vehicle delivery to customers in specific areas in Arizona, Indiana, and North Carolina after initially launching and testing in the greater Phoenix area Same-day delivery eligibility largely depends on the proximity of the customer to the selected used vehicle and the availability of delivery slots amidst other customer orders. Carvana plans to further roll out this offering across its nationwide footprint in the upcoming months. Three students from Technische Universität Berlin and an independent researcher have cracked Tesla's infotainment system, scoring free upgrades like heated rear seats. This car 'jailbreak' might even unlock self-driving and navigation features where they're usually off-limits. The researchers were also able to extract personal information from the car, such as contacts, calendar
Thu, August 03, 2023
The UAW Gauntlet Is Laid, Two Icons Return
Shoot us a Text. It’s a perfect Thursday to care for the millions of people who will walk through our doors. Today we’re talking about the proposed terms set forth by the UAW. We’re also talking about the return of two icons…one is a truck and the other is a household name for household wares. The players are all on the field as UAW President Shawn Fain has announced the union's intention to pursue an audacious set of proposals from Detroit's Big 3. The "most ambitious" contract demands in decades include double-digit wage gains, restoration of pensions, and improved benefits for retirees. The union is also pushing for a reduced 32-hour workweek. Fain emphasized that if the automakers want to celebrate their record profits, they should be prepared for record contracts, pointing out the substantial concessions made by the union in the past. Stellantis expressed its willingness to collaborate on the proposed terms, stating a shared interest in securing the future of its employees and their families, while also emphasizing the need for a globally competitive contract. "If the companies want to brag about record profits, then it's time for record contracts," Fain said. "It's time for them to deliver for our members, and we're going to deliver for our members, come hell or high water." The current contract expires on September 14th The internet is abuzz as the iconic Toyota Land Cruiser stages its comeback. Discontinued in the United States in 2021, it's making a grand return with a 2024 model that exudes retro charm. The transformation is marked by a smaller size and the introduction of an exclusive hybrid version which will likely be a vast improvement to the iconic poor fuel efficiency of the vehicle. The new design shares its architecture with other Toyota models like the Sequoia, Tacoma, and Tundra, as well as the Lexus GX and LX but is slightly more compact, yet still wider than the old 200 Series. Perhaps the most captivating aspect of this comeback is the Land Cruiser's newfound affordability. Anticipated to be priced at about $30,000 less than the outgoing 200 Series, the revived Land Cruiser is sure to attract a new generation of off-road enthusiasts. In a bold move to redefine its online retail identity, Overstock.com's CEO, Jonathan Johnson, revealed his jealousy and has decided to adopt the name of a well-known competitor. Overstock acquired the digital assets of the bankrupt Bed Bath & Beyond earlier this year and has since made a full transitio
Wed, August 02, 2023
Toyota Subarus In KY, Ford Lighting Back On, Ads on Ads at Walmart
Shoot us a Text. Wheels up today and headed to our final ASOTU CON site visit just south of Baltimore. We are talking about Toyota and Subaru partnering for EV assembly, Ford restarting the ignition on the Lightning, and Walmart is taking a crack at adding in store ads. Show Notes with links: Toyota is set to extend its partnership with Subaru by manufacturing a three-row Subaru EV crossover in Kentucky by 2025. The final assembly location and battery sourcing could potentially qualify both vehicles for the full $7,500 federal tax credit under the Inflation Reduction Act. The joint development and production strategy allows Subaru to introduce a larger EV while maintaining high-speed operations at its U.S. assembly plant in Lafayette, Ind. Toyota has announced investments of $5.9 billion in its North Carolina battery plant, where it will operate six battery production lines, four for hybrid vehicles and two for electric vehicles. Toyota aims to release 10 EV models globally by 2026 and has committed to investing over $37 billion in EV development and production through the end of the decade. Ford is ramping up the production of its F-150 Lightning electric truck , aiming to triple the production rate in a bid to test the readiness of mainstream U.S. truck buyers to switch to electric vehicles. Ford has restarted the assembly of its F-150 Lightning electric truck and is aiming to reach a 150,000-vehicle annualized production rate by October. To support this increase, Ford has added 1,200 workers to the Lightning assembly system and plans to operate it on a three-shift work rotation. Half of the new orders for the Lightning are for the XLT model, the middle of the vehicle's lineup starting at $54,995. To support increased Lightning production, Ford will focus sales efforts on "attracting more traditional customers, or the early majority," according to Marin Gjaja, chief customer officer for Ford's Model-e electric vehicle business. Joining retailers like Target and Kroger, Walmart is expanding its in-store advertising , allowing brands to buy spots on self-checkout screens and other areas in the store. This includes third-party ads on screens in self-checkout lanes and TV aisles, radio spots, and product sampling at demo stations. Retail media, marketing to shoppers based on customer data, is becoming a substantial revenue stream for retailers. It
Tue, August 01, 2023
Toyota Climbs, Windshield Wipers Melt, Mr. Beast Sues, Episode 500!
Shoot us a Text. It’s the first day of August and believe it or not, it’s back to school time for some! Today we talk about Toyota’s climbing Q2 results, some major heat related car problems in the south, as well as a Mr. Beast lawsuit that starts with a story. Toyota Motor Corp. nearly doubled its operating profit to $7.75 billion in the latest quarter, fueled by semiconductor shipments and strong sales in major markets. However, the company is concerned about the weaker performance in North America, which is affecting its ability to invest in electric vehicle production. Toyota Motor Corp. nearly doubled its operating profit in the last quarter due to increased supply from semiconductor shipments and strong sales in key markets, especially in Japan. The operating profit rose to $7.75 billion, up from $4.00 billion a year earlier. North America margins sat at 3% while Europe was at 6.3% and Japan at 14% leading to an overall margin of 10.6%, up from 6.8% last year The company maintains its forecast for record production, global sales, and operating profit, despite uncertainty in the U.S. market. Toyota's outlook calls for production of Toyota and Lexus brand vehicles to climb to a record 10.1 million vehicles in the current fiscal year, with global retail sales expected to reach a record 11.38 million units The historic heatwaves in Texas are leading to unexpected vehicle breakdowns , according to mechanics and technicians from Bosch. In addition to common issues like dead car batteries and flat tires due to the extreme heat, newer problems are also emerging. Rubber compounds as well as the actual plastics in windshield wipers are breaking down, leading to scratches on the glass. Doc Watson, the Bosch training manager, said, "You’re driving around in 112° temperature, you’ve got heat reflecting off the glass, and that causes the rubber components of a wiper blade to break down.” The high temperatures are negatively affecting car brakes as well. The heat causes the moisture trapped in the brake fluid within the master cylinder to expand, leading to a loss of brake feel, or "brake fade." The YouTube star, Mr. Beast (aka Jimmy Donaldson) is growing up and has lawyered up . He and his company, Beast Investments, is filing a lawsuit against his business partner, Virtual Dining Concepts, over the quality of his branded food line, MrBeast Burger. Citing 'inedible' food and damaged reputation, Donaldson seeks to terminate the b
Mon, July 31, 2023
Used EV Price Drops, Battery Shipping Struggles, Chick-Fil-A's Digital-Practical Innovation
Shoot us a Text. It’s a Monday close to the month and we’ve got all the energy as we talk about Used EV Pricing, what it’s going to take to safely ship EVs, as well as an elevated solution to deliver digital orders by Chick-Fil-A. EV prices continue to plunge, causing a ripple effect across the used car sector and putting a dent in dealer profits. Analysis shows a year-on-year drop in used EV prices eight times higher than other cars, with economic uncertainties, low gas prices, and general lack of interest dampening consumer enthusiasm for EVs. Analysis of 1.8 million used cars by iSeeCars showed a 3.6% year-over-year drop in June 2023 for 1 to 5 year old used cars, but used EV prices fell eight times more (29.5%) compared to the previous year. iSeeCars executive analyst Karl Brauer told Wards “Market share is very slow in states that already have a lot of the EV market share. In other words, Washington, California and Oregon are three of the highest states with EV market share and the slowest states in growing their EV market share.” He continued “There is a threshold of between 7% and 10% where it starts to become very difficult to keep growing EV sales and market share. A burning car carrier off the Dutch coast is being relocated away from shipping routes as part of a salvage operation. The ship was carrying 3,783 vehicles, including 498 BEVs…many more EVs than the originally reported 25 Mini, BMW and Mercedes-Benz confirmed they have hundreds of new vehicles among those on the ship Maritime shippers are struggling to manage the fire risk associated with shipping EVs, as the lithium-ion batteries in these cars can cause hard-to-control fires. The number of ship fires increased to 209 in 2022, the highest in a decade, and a significant share of these incidents are associated with cargo containing lithium-ion batteries. Chick-fil-A is further adapting to the digital world while cutting down on their drive-thru lines spilling into traffic as the fast-food giant plans to elevate customer convenience by unveiling two new restaurant designs - a raised, four-lane drive-thru concept in Atlanta and a walk-up only store in New York City next year. The new drive-thru lanes run below the structure and can hold
Sat, July 29, 2023
An 18 Wheeler Couldn't Stop This Dealer
Shoot us a Text. Today we have ASOTU Head Writer, Chris Reeves in the studio to talk about what happened when one dealership employee was involved in an accident with an 18 wheeler. You might not be THAT surprised at what happened next.... Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, July 28, 2023
Ford Cautiously Up, GM’s Awkward Moment, McDonald’s Launches To Launch New Concept
Shoot us a Text. It's FRIIIIIDDDDAAYYY, and we’re talking about Ford’s profits amidst increased caution. We also talk about the complexity of GM’s profits and their effects on UAW negotiations as well as a new cosmic concept coming from McDonalds. Ford reported a $1.9 billion net income for the second quarter of 2023, marking a nearly threefold increase from the same period in the previous year. They also increased their overall profit forecast for 2023, but also predicted an additional $1.5 billion loss on EVs due to consumer concerns over pricing and scaled-back production plans. Despite the EV business underperforming, Ford's overall revenue increased by 12% to $45 billion, with the commercial and gasoline-powered vehicle segments making significant contributions. Ford Pro 15% and Ford Blue 9.2% Adjusted earnings before interest and taxes for 2023 are now projected to be between $11 billion and $12 billion, up from the previous $9 billion to $11 billion estimate. The company also expects an adjusted free cash flow of $6.5 billion to $7 billion. EV production targets have been delayed, targeting a 600,000 EV production run-rate pushed to 2024 from the previous goal of end-2023. The company no longer provides a forecast for when it plans to produce 2 million EVs annually. Despite challenges in the EV market, Ford's CEO Jim Farley assured strong EV purchase consideration among potential buyers, and CFO John Lawler maintained their goal of achieving 8 percent EV margins by 2026. We reported on GM's big earnings earlier this week and it might be getting a little awkward , as strong financial results may complicate ongoing negotiations with the United Auto Workers union. Despite a Q2 revenue of $44.7 billion, GM's forthcoming discussions with the union and investments in electric vehicles may make for a challenging second half. The current four-year contract with the United Auto Workers union expires in September and the last negotiation resulted in a strike that cost GM $3.6 billion. The ongoing inflation and union-related challenges coincide with GM's massive investments in battery factories that pay lower wages and are not unionized, which is a sensitive issue. McDonald’s Corp. announced plans to launch a spinoff restaurant brand , CosMc’s, in 2024, based on the retro alien mascot CosMc from the 1980s and 1990s. The move follows a recent
Thu, July 27, 2023
Landmark OEM Ventures, Tesla Diverts Complaints, From Barbie to GAP
Shoot us a Text. We’re rounding the corner on a Thursday as we talk about a new joint venture by several OEMs to launch a new charging network. We are also talking about scrutiny for Tesla’s stated charging range as well as the reviving of a tired icon. Show Notes with links: Seven major automakers are teaming up in a landmark venture to bring 30k chargers to a nationwide charging network. General Motors, Stellantis, Hyundai, Kia, Honda, BMW, and Mercedes Benz, announced the formation of a new company. Tesla, which accounted for more than 60% of U.S. EV sales last year, currently has the largest network of fast-chargers with almost 18,000 Superchargers in the U.S. Tesla announced earlier this year that it would open part of its charging network to rival brands to be eligible for a share of the $7.5 billion in federal subsidies available for expanding EV use. The CEOs of the seven auto brands believe that a charging network built out like gas stations, complete with restrooms, food service, and retail operations, would support a faster rollout of EVs. They expect EVs to account for over 50% of U.S. sales by 2030. This is all in an effort to be a part of the Biden administration’s goal of 500k chargers by 2030. Is it deceptive or leveraging the system? Tesla faces scrutiny as it emerges that the company has been canceling service appointments related to battery range complaints, while also allegedly exaggerating the driving range of its electric vehicles, raising questions about the company's transparency with its customers The company created a "Diversion Team" to cancel as many range-related service appointments as possible, claiming that the vehicles did not need repair. This was done to ease the pressure on service centers and save costs. The company's exaggerated range estimates were a result of software algorithms that showed optimistic projections of driving distance on a full battery. These estimates were particularly high when the battery was fully charged and became more realistic as the battery level dropped below 50%. This strategy was reportedly directed by Tesla CEO Elon Musk Trying to ride the Barbie wave of success, Gap has tapped Richard Dickson , Mattel’s president, to rejuvenate the struggling clothing retailer. Mattel is having a blockbuster week thanks to the success of the “Barbie” movie, that grossed $155 million domestically over the weekend. Di
Wed, July 26, 2023
The Bolt is Back, Confidence Rising
Shoot us a Text. Welcome to Wednesday as we fire up the welcome wagon for the new Chevy Bolt. We also talk about the rise in consumer confidence, as well as the forming efforts to police AI. Show Notes with links: After announcing that the Chevy Bolt would be discontinued back in April, General Motors has surprised the industry with plans for a next-generation Bolt . The new model will utilize GM's Ultium battery platform, heralding a promising future for the company's electric vehicle line-up. Yesterday, CEO, Mary Barra touted the success of the Bolt saying, "Our customers love today's Bolt. It has been delivering record sales and some of the highest customer satisfaction and loyalty scores in the industry. It's also an important source of conquest sales for the company and for Chevrolet. She also announced that the new Bolt would be produced on an accelerated timeline and that the speed and financial efficiency of producing a new Bolt as opposed to and all-new program would be great This is a very capital-efficient, quick way to build on the strong consumer response we have to the Bolt and get an affordable vehicle out into the marketplace," Barra said. "Frankly, I'm super excited about it. A job market that is continuing to stay strong and slowing inflation are contributing to the highest consumer confidence in over 2 years. The Conference Board's Consumer Confidence Index for July hit 117, the highest level in two years, according to new data released Tuesday morning. Just 9.7% of the respondents to the Conference Board's survey said jobs were 'hard to get,' lower than 12.6% in June. "The data today continue to show that the Fed's job is very tough," Jefferies US economist Thomas Simons wrote Tuesday. He added, "There are storm clouds on the horizon, but until the consumer sees a material decline in labor market conditions it seems that they are going to remain optimistic." Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, July 25, 2023
GMs Big Income Bump, An Unconventional Repair Location, Charity Golf To Another Level
Shoot us a Text. Welcome to Tuesday as we talk about the big gain in GM’s report as well as a savvy solution to a much needed fix. We also recap one of the best Charity Golf events an experienced caddy has ever seen. Show Notes with links: GM reported a remarkable 52% surge in Q2 net income, reaching $2.6 billion, even with a $792 million charge linked to the Chevrolet Bolt recall. The company also raised its full-year guidance for the second consecutive quarter and aims to cut $3B in costs which is $1B higher than its previous goal In a shareholder letter, CEO Mary Barra said "We're building momentum thanks to incredible customer response to our new trucks and SUVs, and strong execution of our business plan by the GM team, our dealers and our suppliers." She also reported that the company hit their first half goal of producing 50k EVs and said the company is on track to hit its second half goal of 100k Stadium parking lots are finding new utility as Hyundai takes over Robert F. Kennedy Memorial Stadium in DC to give customers access to speedy safety recall fixes . Thefts of the affected Hyundai and Kia vehicles increased after videos surfaced on TikTok and YouTube showing how to quickly break into them and start their engines with a USB plug or a similarly shaped tool. The service center will have technicians on-site to install and complete the software upgrade, a process that Hyundai estimates will take less than an hour. The mobile service center is the first in what could be a series of events, as Hyundai's dealer network is overwhelmed with customers requesting the software update. This will be the first in a series of similar events across the country. Hyundai and Kia have over 2 million vehicles that cannot receive the fix and they have still been providing steering wheel locks for those customers affected. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, July 24, 2023
GM Repositions OnStar, Destructive Ocean Mining for EV Metals, X Is Born
Shoot us a Text. Welcome to a freshly picked, fully organic week in the Retail Automotive industry. Today we’re on location at a Dealer-run charity golf tournament in Atlanta as we talk about GM’s repositioning of OnStar. We also talk about the less-than-stellar results of a study of ocean mining for EV battery materials, as well as the x-tinction of the Twitter bird. GM is launching a new advertising campaign to position its OnStar service , known for in-vehicle safety features such as roadside and crash assistance, will undergo a transformation, with a new advertising campaign aimed at highlighting its role in driving tech experiences in the GM's lineup. "This campaign is our first attempt at really reintroducing that brand role for OnStar," said Laura Thornton, marketing director for GM's digital business and OnStar. "You'll see a new look, a new design, a new messaging strategy, a different way to talk about the products in this space." The new campaign will replace OnStar's previous tagline, "Be Safe Out There," with "Better Never Stops." Silmo Bonomi, Chief Creative Officer at Campbell Ewald, the agency that worked on the campaign, the new tagline was inspired by the idea of continual improvement, like smartphone updates: A new study has shown that the impact of deep-sea mining for EV battery metals is more destructive to marine ecosystems than previously estimated after a small mining operation off the coast of Japan led to a 43% drop in marine life density in directly affected areas and an even great 56% drop in adjacent areas The study analyzed the seabed ecology following Japan's first successful extraction of cobalt crusts from deep-sea mountains, another method of mining EV battery metals, which also had significant impacts on marine life. Ecologist Lisa Levin, has refuted claims from mining companies that deep-sea mining is less destructive than land mining and asserts that the impact of deep-sea mining extends to larger areas due to the nature of the underwater landscape. It’s official, in the wee hours of Sunday morning, Elon musk announce that the company he spend $44B to buy would be ditching to iconic name and blue bird to become “X”, the ‘everything platform’. X.com was initially what Paypal was called when Musk founded it and he purchased x.com from the company back in 2017. X.com now redirects to twitter.com Musk twe
Sat, July 22, 2023
Is This Level Of Fun OK For A Car Dealership Group?
Shoot us a Text. Today we have our staff writers Chris Reeves and Kristi Canada in the studio to talk about the best stories from the people side of the car business. Today, Chris is asking all the questions as the crew pulls in ASOTU Producer Nathan Southwick into the mix (pun intended). Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, July 21, 2023
Heat Hinders EV Batteries, Consumers Ditch In-Car Infotainment, Actors Ain’t Playin’
Shoot us a Text. It’s a beautiful Friday in auto as we talk about a recent study showing the effects of high heat on EV range. We also talk about the recent consumer satisfaction reports regarding infotainment, as well as what we can learn from the ongoing writers and actors strike. With much of the U.S., and many other parts of the world experiencing a significant heat wave, a new study released by Recurrent revealed that extreme heat can significantly reduce the driving range EVs , with some experiencing as much as a 31% drop Temps over 100 degrees fahrenheit seems to be a major strike point while the decline is less severe at cooler temperatures, with an average range reduction of 5% at 90 degrees and 2.8% at 80 degrees. The analysis was based on data from 17,000 vehicles, including 65 models of EVs and plug-in hybrids, with Tesla's models showing the least range degradation. Greg Less, the technical director of the University of Michigan Battery Lab, explained that the degradation in range under extreme heat conditions is fundamentally linked to the chemistry of the battery. "Once you're above [104 degrees Fahrenheit] you start to have a breakdown of the passive emission layer on the anode, causing consumption of the liquid electrolyte," said Less. Growing dissatisfaction with complex car infotainment systems has resulted in the first ever consecutive yearly decline in owner satisfaction , according to JD Power’s APEAL Study as even more drivers are opting for smartphone-mirroring systems like Apple CarPlay and Android Auto over built-in controls. Only 56% of owners now prefer to use their car’s built-in system to play audio, down from 70% in 2020. Less than half prefer to use in-built navigation, voice recognition, or call-making controls. Consumers appear to be more accepting of native car operating systems if they're developed by Google, as vehicles with Android Automotive's operating system, AAOS, scored higher in infotainment satisfaction than those without. However, if there are no Google bundled apps, the AAOS are the lowest JD Power found the largest year-on-year satisfaction decline was with vehicle exteriors, decreasing to 888 from 894, particularly with 2023's new models. In Hollywood's largest strike in 60 years, both actors and writers have halted work , revealing the divide between traditional entertainment companies and streaming giants like Netflix. The conflict stems from
Thu, July 20, 2023
Tesla Collabs, VinFast Constructs, Toyota Augments Reality
Shoot us a Text. It’s Thursday in the car business, and we’re feeling fine as we talk about Tesla’s somewhat surprising earnings call yesterday, as well as EV maker VinFast’s fortitude with their new plant. We also talk about some really unique AR glasses from Toyota. Yesterday’s earnings call with Tesla was a bit of a wild ride as results regarding the effects of the company’s recent price cuts as well as a surprise announcement about a forming partnership with a traditional OEM. As we know, Tesla has been discounting pricing to increase volume and CEO Elon Musk indicated that the discounts will likely continue and possibly deepen. New vehicle deliveries rose 83% April - June Sales were up 20% and gross profits were 18.2%, down from 19.3% last Qtr and 25% a year earlier Musk also made an announcement that they are in talks with another OEM to license their self-driving technology. He said, "We are already in early discussions with a major OEM about using Tesla FSD. We're not trying to keep this to ourselves. We're more than happy to license it to others." After being criticized for continually predicting FSD is close to ready, he doubled down and said FSD should be ready to safely operate by the end of this year Despite a poor sales record of just 128 units of its EV crossover in the first five months in the US, Vietnamese electric vehicle maker VinFast announced they are forging ahead with plans to construct its own factory in North Carolina. The plant is expected to have an initial production capacity of 150,000 vehicles annually and create over 7,000 jobs. Chief Executive Officer, Le Thi Thu Thuy said in a statement, “When it begins operations, the factory will be VinFast’s primary supplier of electric vehicles to the North American market.” From the Jalopnik article: “Bloomberg reports that VinFast plans to list in the U.S. by merging with special purpose acquisition company Black Spade Acquisition Co. in the second half of this year. The deal would apparently give VinFast an equity value of about $23 billion. That works out to about $180,000,000 per vehicle registered in the U.S. “ Toyota is working on obtaining a patent for augmented reality glasses that are intended to supersede traditional car head-up displays. The glasses aim to enhance road safety by providing enhanced visibility under all conditions. They use el
Wed, July 19, 2023
GMs Non-Auto CMO, Carvana Spooks Then Soars, Activity Avalanche
Shoot us a Text. Welcome to Wednesday campers! Today we’re having a look-see at GM’s new CMO. We’re also tip-toeing around Carvana’s announcement yesterday afternoon, as well as asking if too much collaboration can be a bad thing. Show Notes with links: General Motors (GM) has hired Norm de Greve, the Chief Marketing Officer of CVS, as its new marketing chief, effective from July 31. De Greve, known for transforming CVS into the country's largest consumer healthcare company, is set to spearhead GM's marketing as the automaker invests heavily in electric vehicles. De Greve, who has served at CVS since 2015, is known for championing purpose-related marketing and has initiated several key marketing campaigns during his tenure, such as CVS' “Role Model” campaign aimed at combating image insecurity among young adults. During his tenure he also stopped doing business with any agency that had a tobacco company as a client and also led the brand to stop using altered images of females in marketing campaigns Though de Greve lacks extensive automotive experience, he has prior experience with GM's digital marketing while employed at Digitas, from 2001 to 2014, a point highlighted in GM's announcement. Carvana Co.'s stock sank over 9% after the online auto retailer startled investors by moving its quarterly results release two weeks ahead of schedule. Despite having seen a rally of more than 700% this year, this unexpected announcement, amidst speculation of a disconnect from fundamentals, has rattled the market THEN: Shares soared over 25% in pre market trading Carvana has announced a signed agreement to slash its total outstanding debt by over $1.2 billion and decrease its required annual cash interest expense by more than $430 million for the next two years. This move will eradicate over 83% of its unsecured notes due in 2025 and 2027, boosting its shares by 27% in premarket trading. The company reported a shift to a second-quarter adjusted earnings of $155 million, a considerable improvement from a loss of $216 million in the same period the previous year, despite a 23% reduction in revenue to $2.97 billion. Workday, a cloud-based software firm, noticed a boost in collaboration when employees returned to the office part-time last year. Hallway chats and meetings replaced previ
Tue, July 18, 2023
Ford Slashes Lightning Prices, GM Limits Incentives, Old EV Batteries Storing Solar
Shoot us a Text. It’s a great Tuesday to get some people on the road as we talk about Ford’s recent cuts to F150 Lighting prices. We also talk about GM selling all the cars they are making, as well as a new solution to solve 2 energy problems at once. The EV pricing wars are heating up as Ford Motor Co. has cut prices for its F-150 Lightning electric pickup trucks between $6,000 to $10,000, depending on the model. Marin Gjaja, the chief customer officer for Ford's EV unit, explained the price reductions are due to lower material costs and higher production capacity The cheapest Lightning model, the commercial-focused Pro trim, will now start at $51,990, still 25% more expensive than at launch in April 2022. The highest-priced trim, the extended-range Platinum model, has been reduced by $6,079 to $93,990 Ford is also adding an additional $1000 discount for customers ordering a truck before the end of July The $7500 federal tax credit also applies to trucks under $80k meaning the entry level truck with all current discounts and credits costs: $43,490 Ford CEO Jim Farley has previously cautioned against aggressive price cuts, arguing they can damage the resale value of vehicles and disappoint customers who purchased at higher prices. According to Rory Harvey, GM’s North America president, the company has strong demand and is having some trouble delivering units to Dealers fast enough. At a Lansing, Michigan event, Harvey said, "At this particular point in time, we could just about sell every product that we can build." He partially credits the management of demand to the fact that "GM very strongly continues to have discipline in terms of incentives…” As far as challenges go, transporting vehicles from the plant to the dealerships by truck or rail is slower than they would like. When it comes to EV sales, Harvey declined to directly attribute the lower-than-expected sales of GM's newest electric vehicles, the GMC Hummer EV and Cadillac Lyriq, to issues with Ultium batteries, a potential bottleneck in production. GM sold 1,348 Lyriqs and 47 Hummers in the second quarter however Harvey predicts a significant increase in the second half of the year One California company in Lancaster, California, is giving new life to used EV batteries to store solar power, tackling two key issues in renewable energy: evening supply and battery disposal. B2U Storage Solutions is using retired EV batte
Mon, July 17, 2023
VW CEO’s Urgent Message, The First Cybertruck Built, AI Crushing Mentorship
Shoot us a Text. Welcome to a beautiful Monday in the car business! Today we’re talking about the VW CEO’s fiery message to his managers. We also cover the first Cybertruck built in Austin, as well as the AI implications on the rookie workforce. Show Notes with links: In an address to over 2000 senior managers some described as ‘fiery’ , Volkswagen CEO Thomas Schaefer warned of significant challenges saying “all is at stake” and “the roof is on fire” Amid massive investments in electric vehicles, he called for an immediate spending freeze, suggesting operational costs are spiraling. He plans cost-saving "performance programs" and the need for a leaner, more agile company structure. Schaefer called for an immediate freeze on spending, citing high operational costs, and planned to introduce "performance programs" aimed at saving the company over $11 billion over the next three years. The company is set to begin sales of the electric-powered ID.7 sedan in Europe soon, and it also plans to unveil new-generation combustion-engine Tiguan and Passat models. Schaefer criticized the existing structures and processes as being too complex, slow, and inflexible. The company's CFO, Patrik Andreas Mayer, also stressed the critical situation, saying “our vehicle business is unwell’ before describing Schaefer's address as a "last call." After a two-year delay marked by component shortages, Tesla announced in a tweet on Saturday that it has finally built its first Cybertruck in it’s Austin TX Gigafactory. The photo in the post features a single Cybertruck surrounded by a jovial looking group of hundreds of workers wearing yellow safety vests and hard hats The company’s plans state an expected 250k trucks per year front the plant however, the ramp up plans are still unclear as Tesla eagerly anticipates being a competitor in the lucrative pickup segment Historically, new technologies have favored the younger generations in the workforce as they quickly adapt to and deploy them in their everyday tasks. That may not be the case with generative AI tools like Chat GPT as they are quickly being utilized to automate the mundane tasks traditionally performed by entry-level workers, potentially stunting their professional development. Over the past several years Corporations h
Sat, July 15, 2023
Dealers Creating Farm Content Just For Farm Content's Sake
Shoot us a Text. On this Saturday episode, we're talking with head writer Chris Reeves about the Smail Auto Group visiting an animal rescue and creating content for them! Thanks to Jeff Revilla for passing this story on to us! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, July 14, 2023
Lithia Aimed for Success, Gen-Z in Shopping Malls, and Slicing and Dicing Avocados
Shoot us a Text. We’ve got that Friday feeling! The one that gives you all the jitters before a big weekend! Today we are checking in on Lithia’s growth plans, Gen-Zers getting dropped off at the mall, and avocados getting some automated slicing and dicing. Show Notes with links: Lithia’s grand plan of reaching $50 billion in revenue by 2025 seems to be well on its way as acquisitions and adjacent businesses pave the way to growth. CEO Brian DeBoer said that its acquisition target is now $25 billion in acquired revenue, up from $20 billion. Driveway, Lithia's online platform, has a $3 billion revenue target, down from $8 billion, due to a high cash burn rate caused by shipping costs. In addition to acquiring US stores, Lithia is looking internationally, expanding into Canada in 2021, and the UK this March. Other ventures to boost revenue might include new verticals like power sports, RVs, agriculture and heavy trucks. Plus Lithia is looking at horizontal opportunities such as fleet management, charging networks, internal IT and consumer insurance. Last October, Deboer dropped hints that the retailer is looking at buying or building a CRM or DMS. Lithia’s past 5 years of revenue: 2018: $11.8B, 2019: $12.67B, 2020: $13.1B, 2021: $22.8B, 2022: $28.2B. Revenue projections for 2023 are $31.2B. David Whiston, an analyst at Morningstar in Chicago said “"It's certainly possible the street is not modeling them at $50 billion in 2025. Personally, I believe them. They tend to do what they say they're going to do. And then usually overdeliver, in fact." In an unexpected twist, Gen-Z is taking to their phones to vote on a survey to send themselves back to shopping malls . A recent study by IPX found that: “Nearly 2 in 3 (61%) Americans want to see a revival of traditional shopping malls. Gen Z and Gen X are the most hopeful, followed by Millennials and Baby Boomers.” Another survey by the International Council of Shopping Centers’ found that “Nearly the same share of 16- to 26-year-olds who shop at brick-and-mortar stores (97%) also shop online (95%). 94% of Americans have a mall within an hour’s drive, but 40% wish they had one closer. Handmade is taking a 50% cut at Chipotle as their new Autocado robot replaces the tedious task of peeling and coring avocados in some restaurants. The fast casual chain is working with robotics company Vebu to create the device, after analyzing the company's preparation process and identifyi
Thu, July 13, 2023
UAW and the Big 3, Dealer Attitude Study Findings, and Prime Day Mess
Shoot us a Text. You never know who you will stumble upon in the morning pod! Welcome Ben Hadley to the show! Today we break down the UAW negotiations, check out the top OEMs according to dealers, and have spasms over Amazon’s design theory. Show Notes with links: “Confrontational,” “costly,” “critical,” “unprecedented” and a “s---show," are not words you want to hear as the United Auto Workers union enters into negotiations with GM, Ford and Stellantis. But the stakes are high as talks begin this week over contracts of 150,000 UAW workers, with current contracts set to expire on September 14. The UAW is led by Shawn Fain, who rose through the ranks of the union at Stellantis. He has promised to do things differently and do “whatever it takes” to get members their “fair share,” including work stoppages and strikes. Big issues on the table include cost of living adjustments, platinum health-care package and the end of a “grow-in”, or tiered, pay system. The estimated weekly effect of a union strike by Bank of America Securities: GM $770 million, Ford: $620 million, Stellantis: $470 million. The UAW union declined to participate in the traditional handshake opening negotiations. An added complexity is that the contracts for 18K Canadian employees represented by the Unifor union also expire in September. The 2019 negotiations stalled, leading to a 40-day strike. If brand is a feeling (and it is), then Lexus and Toyota are in excellent position , placing first and second in the most recent NADA Dealer Attitude Survey. The survey is put out every 6 months and measures how dealers are feeling about the brands they represent, rates their satisfaction with the OEM’s performance and asks about their willingness to listen to their dealer’s feedback and suggestions. The complete list from Winter 2023: 1. Lexus, 2. Toyota, 3. BMW, 4. Porsche, 5. Honda, 6. Subaru, 7. Kia, 8. Mazda, 9. Acura, 10. Cadillac. Cadillac joined the list, replacing Audi. The top 5 are unchanged from Summer 2022. Is it just us or is it really hard to find what you’re looking for on Amazon ? It turns out that it might be that way by design. Some common categories seen on Amazon: “Deals inspired by your recent history”, “Deals related to your views”, “Recommended deals for you”, “Deals related to your wishlists.” Despite the negative user experience, Amazon's strategy is effective. The company has seen a six-fold increase in customer engagement with persona
Wed, July 12, 2023
Right-To-Repair Agreement, Rivian’s Dealership Feels, Shutterstock All In On AI
Shoot us a Text. Midweek kudos to you for rolling in early today! It's Wednesday and we are talking about the government right to repair acronyms, Rivian taking the ever inventive dealership route, and AI images staying in the game for the long haul. There’s a new agreement for automotive right-to-repair between automakers and independent repair shops. The updated commitment affirms the previous 2014 “memo of understanding” and includes telematics data. The Alliance for Automotive Innovation, the Automotive Service Association and the Society of Collision Repair Specialists said the deal means that repair shops will have access to the same diagnostic and repair information as authorized dealer networks, and covers all vehicle technologies, including BEV, PHEV and FCV. There are currently 2 bills in Congress that consider right-to-repair. The REPAIR Act (Right to Equitable and Professional Auto Industry Repair) would mandate that owners and independent shops have the same access to tools and data as the dealer network, and those tools and equipment be made available to the independent repair industry. The SMART Act (Save Money on Auto Repair Transport) would reduce the time automakers can enforce patents on collision repair parts against aftermarket parts suppliers from 14 yrs to 2.5 yrs. The 3 groups sent a letter to Congressional leaders saying that “It should reassure you that independent repairers and automakers are not at odds on automotive data access, but rather in lockstep on this fundamental principle: Consumers should have choice when it comes to repair options.” As EV adoption continues its slow growth, Rivian is using a familiar tactic to get their trucks in front of consumers, opening its first “Spaces” showroom in Vancouver. The “dealership” will be located at The Amazing Brentwood shopping mall and is part of Rivian’s goal of increasing its physical retail presence. Each Space is designed behind a casual experience with no hard selling. The automaker plans to have Spaces in downtown NYC, Austin TX, Laguna Beach CA and the Vancouver location. All Spaces will be unique, some featuring green areas, augmented reality, or being built out of an old theater. In the next year, Rivian is expected to announce the R2 series, consisting of a crossover and a Ford Maverick-sized pickup. The R2s are expected to be priced in the 40K-60K range, which is around 30K cheaper than the R1 models. In contrast to other image-sharing platforms, Shutterstock is <a href='https://www.theverge.com/2023/7/11/23791528/openai-shutterstoc
Tue, July 11, 2023
Toyota Pushes Hydrogen, Not Enough EV Buyers, 100M On Threads
Shoot us a Text. Happy Tuesday, troublemakers! Today we’re covering Toyota’s ramp-up of hydrogen fuel cells, the trouble with EV supply and demand, and the surprising rise of Threads. Toyota has been taking a measured approach to the future of automobiles, and is now investing in hydrogen fuel cell systems. Beginning in December, Toyota will start producing hydrogen fuel cell drivetrains in the US for the first time, all while developing a next-gen system. The Georgetown, KY plant will get a hydrogen dedicated line producing fuel cell modules for heavy duty trucks, with a goal of 200,000 commercial and passenger vehicles by… the year 2030. Trucking could be a breakthrough for hydrogen, as trucks run on established routes, and can guarantee business for costly hydrogen stations, creating a future network for passenger vehicles. In May, Toyota agreed with Daimler Truck Holding to merge Toyota’s Hino subsidiary with Daimler’s Mitsubishi Fuso truck unit. Producing 10,000 units a month is what Toyota needs to break even, according to Chief Technology Officer Hiroki Nakajima. He also said “Once we hit a tipping point, there will be explosive expansion.” In 2026, the Japanese automaker will introduce a new system that reduces the cost of the fuel stack by 50%, improves cruising range by 20% and will make the engine twice as durable as a diesel. The system will scale to fit all types of vehicles. Even though automakers have been scaling their EV output to challenge Tesla, there’s one little problem: not enough buyers . According to Cox Automotive, the nationwide supply of EVs in stock has swelled nearly 350% this year, roughly 3 month’s worth of supply. EV sales are expected to surpass 1 million units in 2023, about 6.5% of the auto market. Some notable brands with higher inventories: Genesis sold only 18 of its G80 sedans in June, with 210 in stock (a 350 day supply) Audi’s Q4 and Q8, and the GMC Hummer EV all have inventories above 100 days and aren’t eligible for federal tax credits. Imported models from Kia, Hyundai and Nissan are stacking up because they aren’t eligible either. The once hot Ford Mach E has cooled to a 117 day supply. On the other end of the spectrum, hybrids have a lower inventory, with 44 days industrywide. Toyota’s Prius and RAV4 are under 30 days. Instagram’s new Threads app has reached 100 million users , even though it's only been out for a
Mon, July 10, 2023
Benz Goes Tesla, 40 Epic Auto People Recognized, and AI Lawsuits
Shoot us a Text. Good Monday morning! We are blessed by the voice of Michael Cirillo on the pod this week. Today we are following the continuing story of Tesla’s NACS chargers, celebrating the Automotive News 40 under 40 list, and checking in on an AI lawsuit by some famous authors. Show Notes with links: Another domino has fallen in Tesla’s favor as Mercedes-Benz announced that they will integrate the NACS charging connector in their EVs, beginning in 2024. The 2024 models will include a NACS adapter to the CCS connector. In 2025 and beyond, the vehicles will have a NACS port. Mercedes is also planning a charging network of more than 2500 high-power chargers in North America with some sites opening in late 2023. Volkswagen, BMW, Hyundai, Toyota, Honda, Stellantis and Jaguar Land Rover are the remaining major North American OEMs who haven’t adopted the new standard. The 12th 40 Under 40 Retail class has been announced by Automotive News, honoring executives, sales and service managers, a general counsel and more. Editor Dan Shine said he was struck by how much More Than Cars reminded him of the 40 Under 40 awards. “[More Than Cars] reminded me of the special stories behind so many of the people we cover… People who were born into it and those who took circuitous routes to the automotive retail industry.” Some recognizable faces for the ASOTU-verse: Dayna Kleve , Director of diversity, engagement & foundation at Walser Automotive Group, Felicia Rey , Owner loyalty manager at Lynnes Nissan City The list also includes Tristan Topps, a former Ms. United States, Kristina Perez-Cubas who performed at the 2007 Super Bowl Halftime Show, Keri Lanzavecchia who took 3 attempts to pass her written learner’s permit and Ronnie Lowenfield who has a collection of over 2500 bottles of bourbon. Sarah Silverman and authors Christopher Golden and Richard Kadrey are suing OpenAI and Meta , alleging copyright infringement as their AI chatbots, trained on illegally obtained datasets, have been summarizing the authors' books without permission. The authors argue that the datasets used by Meta have illicit origins, pointing out that one of the sources for its training datasets, ThePile, was assembled by a company called EleutherAI, which allegedly used content from the Bibliotik private tracker. L
Sat, July 08, 2023
Dealers Who Are In-Touch With The Needs Of The Community
Shoot us a Text. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, July 07, 2023
Rebounding Like Wilt Chamberlain, Loopholes An EV Can Drive Through, Driverless Car Delivery
Shoot us a Text. It’s Friday and we’re feeling the flow as we talk about the sales rebound that is rolling strong. We also discuss the IRA loophole that is changing the EV sales landscape, as well as a global first in autonomy going down in Las Vegas. The June numbers are in and the industry rebound is rolling on as auto sales reached a seasonally adjusted annual rate of 15.8 million, close to the upper end of forecasts and up from 15.1 million in May. Despite remaining below the 15 million mark in 2022 due to low inventory, sales have maintained or exceeded this level in 2023. However, they still fall short of the 2015-2019 boom years when sales exceeded 17 million annually. GlobalData, noting the resilience of American consumers amid near-record high prices and increasing interest rates, increased its 2023 sales forecast to 15.4 million, up by 500,000. Just about everyone is winning: Ford: +9.9%, General Motors: +18%, Toyota: +15%, Stellantis: +6%, Honda: +54%, Hyundai: +10%, Kia: +8%, Nissan: +33%, Subaru: +28%, Mazda: +97%, Audi: +16%, Volvo: +53%, Genesis: +33%, Ram: +3%, Jeep: -3%, Chrysler: +33%, Dodge: +37%, Fiat: -42%, Alfa Romeo: -25% Some analysts predict a cooling in sales pace in the second half of the year due to rising interest rates and affordability concerns. An unexpected loophole in the Inflation Reduction Act could make it easier and cheaper for car buyers to switch to an EV. The legislation originally established strict assembly and material sourcing criteria for vehicles to qualify for federal tax credits, but the new rules may not apply to leased vehicles. Chad Bown, senior fellow at the Peterson Institute for International Economics said, “So if the car companies set up a commercial leasing division and they buy their own vehicles in it, then they get the tax credit and they can pass it onto the consumer and they don’t have to be trucks or vans," Bown said. "No other criteria apply. You can be super rich and qualify for this or the vehicle can be priced any price. There is also no restriction that it has be made in North America or that the batteries have to be sourced from outside of China." Edmunds reports about 37% of EVs bought in April were leased, up from 17% in April 2022. In May, about 44% were leased, up from 15% in the year-ago period. For June, 44% were leased compared with 13% in the year-ago period. Halo.Car, a provider of on-demand electric vehicles, has started <a href='https://www.autoremarketing.com/ar/halo-car-begins-driverless-delivery-of
Thu, July 06, 2023
$1000 Car Payments, Is The Chrysler 200 Back, Does Music Help Or Hurt The Shopping Experience
Shoot us a Text. Thursdays are for taking care of one another. It’s true! Today we’re talking about the new car payment data that has everyone digging a little deeper. We also talk about a unique sale coming from a Chrysler Dealership, as well as the science behind music in the showroom. Show Notes with links: Q2 of 2023 delivered an unprecedented one-fifth of all new car buyers now have monthly payments over $1,000, due to high prices and borrowing costs, according to Edmunds. Average monthly car payments reached $733 amid inventory shortages and increased transportation issues, with the average loan amount exceeding $40,000 for the fifth consecutive quarter. The largest group within the $1000/month contingent, accounting for nearly 65%, signed up for an average loan-term range of 67-84 months with an average APR between 8.5% and 9.6% The average APR has increased slightly to 7.1%, the highest since the fourth quarter of 2007 The avg car payment hit a new all time high and is now $733 As the Q2 reports are rolling in, Stellantis had a little blip on their report which turns out to be the fact that they sold exactly one Chrysler 200 at a dealership during the time frame. It was a 2016 and we don’t know exactly where it was sold or to whom An average MSRP was in the $26k range and currently there are listings of similar vehicles with 100k miles on them going for more than half of that Recent research reveals that in-store music can boost weekday sales by over 10%, as tunes seem to uplift weary workweek shoppers. However, the same melody might not have a similar impact on the weekend crowd, and could even be distracting. The study analyzed 150,000 shopping trips in a Swedish supermarket chain in Stockholm and found shoppers from Monday to Thursday tend to be mentally tired, and ‘pleasant’ music enhances their mood, making their purchasing decisions more instinctive. On Fridays, shoppers are typically happier and less hurried, making them less affected by any "subconscious marketing" through in-store music. Music's impact on shopper behavior often depends on factors such as volume and the type of music played. Previous research suggests music can influence the shopper's social, emotional, cognitive, and arousal responses. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.c
Wed, July 05, 2023
Repair Woes, EV Overstock, Biggest Gas Station On The Planet
Shoot us a Text. It’s a Wednesday that feels like a Monday but not really as we shake off the 4th and head into the second half of the year with bells on! Today we talk about consumer challenges getting their cars fixed, the coming surplus of EV’s, as well as the biggest gas station on the planet that just opened in Tennessee. Show Notes with links: Fixing your car is taking way longer these days, and it's mostly due to a big problem: there just aren't enough car parts or mechanics to go around. Older cars on the road longer and more advanced technology in new cars have repair orders longer and more complicated than ever. The average auto repair took over 17 days to complete last year, up around 65% from 2019’s avg of 10.3 hours. The tech shortage is real with only 48,000 people graduating from tech-training programs each year in the U.S., compared to a need for 258,000 new automotive technicians. Ronnie Clendenin, an auto-repair shop owner in Arkansas, is dealing with doubled workload due to parts which translates into longer wait times and increased repair costs, leading to the difficult situation of turning away regular customers. Automakers, like Ford and GM, are investing in tech-training programs and scholarship funds to tackle the issue and Dealerships continue to invest millions in facilities and equipment that make their stores the service department of choice for techs There has been some buzz around the stock level of EV’s as Jeremy Robb, Senior Director of Economic and Industry Insights, said during a Cox mid-year review, "I've termed it the 'field of dreams' moment for new electric vehicle stock and supply." Even though EV sales have increased this year, the rise in inventory has been even greater. He added, "It's still uncertain what will happen with all this extra stock," but it might overcome some significant challenges. New car inventory is around a 54 days' supply, whereas for EVs, it's nearly double at 92.2 days, up 343% from last year. Prices of new electric vehicles have dropped in recent months. Based on data from Cox, a new electric vehicle that would have cost an average of $65,560 in last year's second quarter, now costs around $55,436. In a testament to American gas consumption just in time for the most American holiday, the world's largest gas station , a 74,000 square foot Buc-ee's, recently opened in Tennessee just in time for the 4th. The new l
Tue, July 04, 2023
The Real Facts About the 4th…and Some Opinions
Shoot us a Text. It’s time to celebrate some very real freedom throughout the country and the Auto Industry as we debunk a few myths and get down to the real data about one of our favorite holidays. Show Notes with links: Fun 4th facts: $9.5 Billion: Amount Americans plan to spend on 4th of July food. 150 Million: Number of hot dogs eaten each 4th of July. $3 Billion: Amount Americans plan to spend on 4th of July beer and wine. $2.7 Billion: Estimated amount spent on fireworks in 2022 (74% of fireworks injuries occur within a month of July 4). $6.5 Million: Value of American flags imported annually. 50.7 Million: Number of people who travel 50+ miles from home for the 4th of July (up 4% over 2022 and setting a new record for the holiday). Independence Day Inaccuracies : Misconception about the July 4th date: It's commonly believed that the Declaration of Independence was signed on July 4th, which marks the United States' independence from Britain. In reality, the Second Continental Congress approved the independence resolution on July 2nd, 1776. The Declaration of Independence was mostly signed on August 2nd during a special ceremony. July 4th is the date the declaration was adopted and when printers started circulating it, hence the reason it's celebrated on this day. The Liberty Bell didn't crack on July 4th, 1776: Contrary to popular belief, the Liberty Bell, named so by 19th-century abolitionists, did not crack on the day the colonies declared their independence. The bell first cracked over 20 years prior to the drafting of the Declaration of Independence. The most iconic crack, visible today, actually occurred in 1846 when an attempt to repair an earlier crack failed. Misinterpretations from 'National Treasure': The movie 'National Treasure' popularized the idea that there's a hidden map or secret messages on the Declaration of Independence. However, this is not true. The only message on the back is a simple note: "Original Declaration of Independence dated 4th July 1776." The film did not use the actual interior of the National Archives for filming, nor the real Declaration of Independence, only a reproduction. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, July 03, 2023
Only Hiring Entry Level Employees, Survey Results About Working w/ Gen Z
Shoot us a Text. It’s that awkward Monday between the weekend and a holiday but the Auto Industry is showing up just the same! Today we’re talking about COO of Bozard Ford Ed Roberts’ perspective on only hiring entry level employees. We also cover the results of a new survey focusing on managers' sentiment toward Gen Z. Show Notes with links: Check out Ed Roberts talking about only hiring entry level employees during his interview on Auto Collabs According to a survey from ResumeBuilder.com, 74 percent of managers say Gen Z workers are more challenging to work with than previous generations. “What Gen Z wants is to do meaningful work with a sense of autonomy and flexibility and work-life balance and work with people who work collaboratively,” Julie Lee, director of technology and mental health at Harvard Alumni for Mental Health “Gen Z are digital natives and they’ve always communicated online, so their interpersonal skills, or soft skills, have suffered,” Tara Salinas, a business ethics professor at San Diego University, recently told CNBC. “They took an even bigger hit because of Covid-19, and it has shifted the way that we need to interact with them in the workplace.” The survey found Gen Z difficult to work with were lack of technological skills, cited by 39 percent; lack of motivation, 37 percent; poor communication skills, 36 percent; and being easily offended, 35 percent . The 2500-year history of adults blaming the younger generation Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Sat, July 01, 2023
Eating Hot Wings To Sell Cars w/ Jordan Cox and Lauren Smith from Gates Automotive
Shoot us a Text. Have we got a Saturday episode for you! Today ASOTU Head Writer Chris Reeves and Paul interview Jordan Cox and Lauren Smith from Gates Automotive who have reverted to primal instinct to get the Mayor, President of the local Chamber of Commerce, and other local leaders into their Dealerships. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, June 30, 2023
Halfway Home, Charging Standard Light Speed, Costco’s Cheers and Jeers w/ Todd Caputo
Shoot us a Text. FRIIIIDAAAYYY CLOSE! As we wrap up the first half of 2023 we’re looking back as we talk about the next round of EV standard moves. We also talk about the retail level reception of Costco’s latest crackdown on sharing memberships. As the mass adoption of Tesla’s NACS charging standard has been dominating the news, the transition isn’t quite as simple as you may think . Yesterday EV maker Polestar and EV motorcycle maker Verge Motorcycles announce a shift to the Tesla standard Electrify America, the largest competitor to Tesla's Supercharger network, which is majority owned by VW announced they will be adding Tesla’s NACS standard to all of their almost 3,500 fast chargers by 2025 in addition to continuing to offer the current CCS standard Challenges include: Onboard software development, hardware design, incompatibility with current charging systems, charge port position, differences in charging speed, use of adapters, manufacturing modifications Tesla chargers don’t have a screen and have a seamless handshake All Tesla charge ports are on the left rear Pins in the harnesses serve different purposes Tesla said in a statement: "It's always been our ambition to open the Supercharger network to non-Tesla EVs, and by doing so, encourage more drivers to go electric. More customers using the Supercharger network enables faster expansion. Our goal is to learn and iterate quickly, while continuing to aggressively expand the network, so we can eventually welcome both Tesla and non-Tesla drivers at every Supercharger worldwide." Costco has intensified the enforcement of its membership policy, with employees frequently asking to see shoppers' membership IDs with their photo at the self-checkout lanes drawing both cheers and jeers The company noticed an increase in card sharing when they introduced self checkout lanes last year Costco makes the majority of it’s profits from membership fees Chief financial officer Richard Galanti said during Costco's May 25 earnings call that at “some point we will” raise rates and cited inflation as a reason for waiting. “Our view right now is that we've got enough levers out there to drive business and we feel that
Thu, June 29, 2023
Subprime Isn’t Sublime, Toyota Sales Lift, Joby Lifts Off
Shoot us a Text. Welcome to Thursday, racers. Today we’re talking about the challenges around current subprime lending, Toyota’s big sales bump, and a giant commuter drone that is one step away from reality. Show Notes with links: According to Experian, Dealerships are finding it harder to secure subprime auto loans due to a decline in subprime customers obtaining auto loans and leases as factors like inflation, rising gas prices, and ending stimulus funds have affected consumers' creditworthiness and increased debt-to-income ratios, with many turning to credit cards for financial support. The proportion of subprime used-vehicle loans has reached near-record lows, with such borrowers only involved in 14% of loans and leases on new and used vehicles in Q1 2023. The increase in late auto loan payments among subprime borrowers is higher than during the late 2000s recession, according to an S&P Global Mobility analysis of TransUnion data. "What we're seeing now is some of the lowest FICO scores ... we've seen in years. Consumers who might have qualified for loans in the past are "not even close," said Michael Opdahl, COO for Automotive Credit Corp Toyota’s global sales saw a significant increase in May as both parts and supply shortages seem to be letting up. The company reported a 10% global sales increase in May 2023, selling a total of 838,478 vehicles attributing the increase to an improved supply of chips and other parts In Japan, sales surged by 35.1% to 116,954 units. Global sales of hybrid cars grew by 25.8% year-on-year, reaching 261,147 units, almost one third of total vehicles sold last month. The company sold 9,923 battery electric vehicles worldwide in May, making the five-month total in 2023 reach 35,980 units. California based, Joby Aviation has received approval from the FAA to begin flight testing its electric air taxi prototype, moving closer to commercial operations, targeted for 2025. The company's business model is akin to a rideshare app. It's set to compete in a growing market of electric vertical takeoff and landing (eVTOL) aircraft manufacturers. Tetsuo Ogawa, the CEO of Toyota North America, will join Joby Aviation's board. Toyota is the company's largest external shareholder, with an investment of around $400 million The company is set to begin passenger operations
Wed, June 28, 2023
The Worst Of Used Cars, Fast Track Charging Standard, First FAA Approved EV Flying Car
Shoot us a Text. It’s a wild Wednesday in retail automotive and we’re ready for it! Today we cover a Cox Automotive report on the state of the used car market, how Tesla’s charging is on the fast track to become the national standard, and the first FAA approved flying car. "I do think the worst of the used-vehicle market is upon us." That’s a quote from Cox Automotive’s Chief Economist Jonathan Smoke in an interview with Automotive News With used-vehicle prices back in depreciation territory, May and June could go down in the books as the "worst May and June in history" for used vehicles losing value, Smoke said. The return of new car competition is good for the used car market and especially for the many consumers who have been sidelined due to affordability issues Smoke predicts a strong second half of 2023 and said “"I am optimistic that every month later this year will actually create strength in the used-vehicle market." As Volvo jumps on board the Tesla charging standard train, the SAE moves to fast track the standard nationally. This is seen as a major boost to Tesla's plan to expand access to its proprietary charging stations. The shift toward Tesla's North American Charging Standard (NACS) marks a departure from previous governmental efforts to establish the Combined Charging System (CCS) as the dominant US standard. The move to standardize the NACS involves conversations between SAE International (Society of Automotive Engineers), Tesla, Ford, GM, and other automakers, as well as the federal government. According to a study by the National Renewable Energy Laboratory (NREL), the US is set to install 1.2 million public chargers, including 1 million Level 2 chargers, by 2030. This exceeds the Biden administration's aim to deploy 500,000 public chargers by 2030. Marty McFly's flying car was set in 2015, and while we might be a bit behind Back to the Future's timeline, Alef Aeronautics is now bringing us one step closer to a sci-fi dream as the company's fully electric flying car, the 'Model A,' has just received legal approval for flight from the US government, marking a new era in transportation. Model A, which offers street driving and vertical takeoff and landing (eVTOL) capabilities, was introduced in October after receiving a $3 million seed investment from Draper Associates Fund V. With a 200-mile driving range and a 110-mile flight range, Model A has already received over 440 reserv
Tue, June 27, 2023
Lordstown Motors Down, Silverado EV Is Up, Ford Engineers Are Out
Shoot us a Text. It’s Tuesday and we’re fired up for another day in Retail Auto as we talk about the unfolding action in EV manufacturing. We discuss Lordstown Motors bankruptcy, the launch of the Silverado EV, as well as the moves Ford is making with its engineers. Show Notes with links: Ohio based Electric truck manufacturer Lordstown Motors has filed for Chapter 11 bankruptcy protection and is now taking legal action against Taiwanese manufacturer Foxconn, accusing them of fraudulent conduct and a series of broken promises, including not abiding by an agreement to invest up to $170 million. Foxconn, best known for assembling Apple's iPhones, had previously invested about $52.7 million in Lordstown and holds nearly 8.4% stake. They stated that Lordstown breached the investment agreement when the automaker's stock fell below $1 per share. The company’s flagship product, a pickup called the “Endurance” was plagued with fires during testing and CEO Stephen Burns resigned in 2021 after acknowledging overstatements of pre-orders for its electric trucks. The dispute could bring more scrutiny to Foxconn's electric vehicle ambitions and partnerships. Should Lordstown fail to find a rescuer, the once celebrated, Lordstown, Ohio factory now owned by Foxconn could attract overseas automakers wanting to build vehicles in the U.S. The Chevy Silverado EV is about to begin commercial production, promising a 450-mile range backed by a whopping 200+kWh battery . However, due to recent supply chain and economic pressures, Chevy is set to increase the initial $39,900 price point of the base model upon its 2024 launch. GM has closed orders for the truck as it begins to fulfill some of the 185k existing commercial orders. Production has started at GM's Factory Zero assembly plant in Detroit, with customer deliveries expected to begin soon. The vehicle weighs 8500 lbs and requires 61 PSI in its tires. Its 200kw battery is 50% larger than the F150 Lightning long range battery and twice as large as the standard range. A Chevy Bolt has a 65kw battery. Carplay still works with a popup warning that it will be discontinued with future updates In the ongoing positioning of EV manufacturing, Ford Motor Co. is preparing to lay off hundreds of salaried engineers across all three of its divisions; EVs, ICE, and c
Mon, June 26, 2023
Toyota Improves, Planes Orders Up and Out, 80 Is The New 50
Shoot us a Text. Welcome to a fantastic Monday to be in the car business as we talk about Toyota not being afraid of learning from the best. We also talk about the inventory shortage with…planes, as well as the reasons older workers want to keep working. Toyota executives believe that the lessons they've learned from Tesla, coupled with Toyota's inherent culture of continuous improvement (kaizen), will facilitate a leap forward in EV production as they aim to halve the number of production processes, reduce plant investment, and cut the production lead time required for new nameplates. The company’s new approach includes the formation of a BEV Factory, a group that brings all functions from design to manufacturing and sales under one umbrella. Toyota plans to overhaul its famed production system to compete with Tesla, incorporating new manufacturing technologies that will be introduced in a few years, including allowing cars to self-navigate through factories without assembly lines. Yoshio Nakamura, deputy chief of global production at Toyota said, "Of course, we admit Tesla has wonderful technology. But that just motivates us to work harder to catch up. If we are to learn from them, it won't be a copy. We will improve upon them through kaizen." Now that auto inventory is starting to catch up, another industry has a backlog that makes a 10 month wait seem like the express lane. The sky-high demand for airliners is outpacing the industry's supply, with manufacturers such as Airbus and Boeing struggling to keep up. The unexpected surge in air travel demand has shifted many airlines from merely trying to recover from the pandemic's impacts, to focusing on expansion. After a full stop in late 2019 through 2020, Airlines have placed massive orders to secure future aircraft, as seen with Indian budget carrier IndiGo's record 500-jet deal with Airbus, despite delivery not being expected until at least 2030. The number of Americans over 80 who are working has risen by 18% in the last decade, with many citing a personal desire to continue working rather than financial need Approximately 50% of these individuals work full-time hours, mostly in professional, managerial, and financial roles, rather than service jobs. Case studies reveal a variety of reasons why older people continue to work, including maintaining relevance, personal satisfaction, the joy of surprising others, and the thrill of being "in the know." Andree Ca
Sat, June 24, 2023
Summertime Serving-time with Kristi Canada Featuring Ciocca Dealerships Doing Good
Shoot us a Text. Today we have ASOTU writer Kristi Canada back to talk about some of the amazing things Dealers are doing that are so much more than cars. We talk about the always active Ciocca Dealerships who are always busy serving from CPR training to pet adoption. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, June 23, 2023
Sonic’s Boom, Wireless EV Charging, Initial Quality Winners & Losers
Shoot us a Text. On this first Friday of Summer 2023, we’re talking about big used car moves from a public, wireless EV charging, as well as J.D. Power’s Initial Quality winners and losers. Show Notes with links: In a regulatory filing and a subsequent news release, Sonic Automotive Inc. announced the indefinite suspension of operations at eight EchoPark locations, citing challenges with lower used-vehicle availability and higher wholesale pricing. Sonic did not disclose which EchoPark locations are affected, but expects this move will allow it to redirect additional used vehicles to key markets to meet current demand. Despite the suspensions, Sonic maintains its targets for EchoPark to reach breakeven earnings by Q1 2024, and plans to cover 90% of the U.S. population by 2025. The company expanded its used inventory parameters from 1-4 years old to up to 8 years old, and expects new vehicle production increases over the next year to benefit pre-owned availability and improve EchoPark profitability. In a step that could move EVs closer to a wireless charging future , Tesla is reportedly eyeing Wiferion, a German startup specializing in wireless charging solutions. This potential acquisition, coming on the heels of Tesla's teasing a wireless home charging station in a recent ad, marks an exciting possibility in the evolution of EV convenience. Wiferion, founded in 2016, has developed inductive charging solutions for industrial robots and electric vehicles, with over 8,000 chargers deployed, primarily for industrial robots. While Tesla doesn’t typically acquire other companies, the deal is expected to be in the mid to high double-digit millions of dollars, although it is not yet confirmed. New vehicle quality is hitting a speed bump, with carmakers Dodge, Ram and Alfa Romeo now outperforming former leaders like Toyota, according to the annual J.D. Power Initial Quality Study . A surge in issues tied to new features and technology is behind the dip in the industry's performance The average number of problems reported in 2023 is 192 per 100 vehicles, up from 180 in 2022 and 162 in 2021. The more features a car model has, the more opportunities exist for defects or failure to meet owner expectations. Issues include seemingly basic elements like door handles, as well as wireless charging pads not working as expected.
Thu, June 22, 2023
Selling For The BIGGEST Bucks, Bye Bye Bolt, Free Gas on the 4th
Shoot us a Text. It’s a great Thursday to be in the car biz as we talk about a record breaking dealership sale. We also tell you when to get that new Chevy Bolt, as well as a $50 gas card from Old Navy. We told you it was a great day. Show Notes with links: In a record breaking transaction , Florida-based Al Hendrickson Toyota, the second-busiest dealership in the US, has been sold to Morgan Automotive Group in what has become the most expensive dealership purchase in history. The landmark deal, facilitated by Haig Partners, underscores a vibrant dealership buy-sell market, undeterred by the ongoing uncertainties brought by the COVID-19 pandemic. Al Hendrickson, Jr. stated in a press release, “I always knew I wanted to be in business with my Dad, and I am so incredibly fortunate to have had the opportunity to spend the last 30+ years working with and learning from him. Our approach to business has always been that we are not in the car business, rather, we are in the people business. We live by our slogan, ‘It’s All About You,’ in providing exceptional customer service, making it a point to know all our more than 200 associates by name and being active in our communities. To say that I am extremely proud of what we have built together is an understatement. It is truly more than I could have ever dreamed. I have loved every minute of these 30+ years.” Morgan Automotive Group, also a family business, is Florida's largest dealership conglomerate. With this latest acquisition, the group now owns 67 stores across multiple brands. If you want a new Chevy Bolt, you'd better get to the dealership fast ! Time is running out for fans of the popular EV as GM has announced it will be discontinuing production of the Bolt later this year, focusing instead on its newer Ultium platform-based models. Despite the Bolt being a best-seller and a "huge technical achievement," GM plans to transition its EV portfolio to its Ultium platform. GM will replace the Bolt with the low-cost Equinox EV, starting at around $30,000, with up to 300 miles of range, although it's unclear when the new model will be widely available as their focus will be on three high-volume Ultium-based models launching this year – the Silverado EV, the Blazer EV, and the Equinox EV. The last order cycle for the Chevy Bolt EV and EUV starts on Thursday, August 17 Old Navy is leaning into the <a href='https://retailwire.com/pres
Wed, June 21, 2023
Texas Hearts Tesla, Loan To Value On The Rise, Service Tech Celebration
Shoot us a Text. Welcome to the first day of Summer as we talk about the Tesla charging standard heating up in Texas. We also cover a new report on rising LTV ratios by TransUnion and JD Power, as well as a unique way of celebrating technicians coming out of Virginia. Tesla is racking up charging wins lately as more automakers as Texas becomes the first state to mandate that state-backed charging stations include Tesla's charging tech, Rivian adopts its standard, and Hyundai is considering using its North American Charging Standard as well. It’s all tied to the money as the Tesla standard must be included as well as the more universal CCS standard if state dollars are involved. "The decision by Ford, GM, and now Rivian to adopt NACS changed requirements for Phase 1" of the rollout, the Texas Department of Transportation said in an email to Reuters on Tuesday Federal dollars don’t currently have a requirement to include the Tesla standard in funded charging stations, but many states are offering bonus money if they do Hyundai announced earlier this week that they are contemplating making its vehicles compatible with Tesla's North American Charging Standard, thereby considering joining the growing alliance of automakers using Tesla's charging technology as long as it is in the best interest of their customers. Tesla stock is up over 50% over the past 30 days As used vehicle values decline and interest rates are high, loan-to-value ratios are significantly on the rise, according to a recent study by TransUnion and J.D. Power released yesterday. Used car loan-to-value ratios have been increasing, averaging 125 in Q1 2023, compared to 110 in Q1 2022 and 104 two years earlier. The analysis suggests that borrowers with more vehicle equity are more likely to protect it by making payments, while those with fast depreciating vehicles are more likely to become delinquent. Subprime borrowers are 25% more likely to go 60+ days delinquent than their non-subprime cohorts Taking a page out of sports arena life, the Richmond Ford Auto Group (3 stores) in Virginia has started honoring their auto technicians like legends. Personalized banners, featuring techs' names, specialties, and accomplishments now han
Tue, June 20, 2023
Where Credit Is Due, DTC EV Makers Looking More Like Their Older Siblings
Shoot us a Text. It’s a beautiful Tuesday in the car biz as we talk about Dealers banding together to clarify EV credits. We also talk about Rivian and Tesla taking a few pages out of the old school automotive playbook. Show Notes with links: In an attempt to clarify EV battery sourcing guidelines, the National Automobile Dealers Association and the Alliance for Automotive Innovation are urging the U.S. Treasury to adjust its definition of "placed in service". They argue the current interpretation limits the effectiveness and application of the electric vehicle tax credit. The proposed changes aim to ensure EVs remain eligible for credits, even when they are manufactured in a different calendar year to delivery. The rules could affect EVs that meet battery content requirements for one year but are delivered to buyers in a year with increased requirements. In 2024, batteries manufactured by excluded entities, which could include companies controlled by China will be ineligible In 2025, those with ‘critical minerals’ will also be made ineligible In a move that sounds awfully familiar to those of us in the retail auto industry, electric vehicle startup Rivian has launched an in-person shopping event as it directly invites buyers to its factory parking lot to browse, buy, and actually drive vehicles off the lot as it struggles through increased inventory. In what the company is calling the “Rivian Dealership” customers can browse several dozen trucks available for immediate purchase The vehicles on offer at Saturday's sale are the four-motor variants of the R1T pickup, equipped with its biggest battery pack, with starting prices at $87,000. Rivian has no plans to provide discounts at this event, and only trucks will be included, excluding the R1S SUV model that continues to have a waitlist, stated a Rivian spokeswoman. “They don’t want to try the dealer path,” said Stephanie Brinley, the principal auto analyst at S&P Global Mobility. She continues: “They are getting to a point where demand isn’t gone, but electric-vehicle makers are having to work harder for customers,” Brinley said. “You do have to sell vehicles, believe it or not.” In a move that appears much more like a traditional OEM, Tesla is providing an $8,000 discount on new Model S and Model X vehicles as well as three years of free Supercharging for deliveries made by the end of the quarter as it seeks
Mon, June 19, 2023
GM’s ICE Commitment, Stellantis Pulls ICE Allocation, Student Debt Hits Back
Shoot us a Text. It’s a great week in Retail Auto to start the Summer. Today we’re talking about GM’s continued commitment to ICE vehicles. We also talk about Stellantis stopping ICE allocations of Wranglers, as well as the return of student debt payments to millions. Show Notes with links: In a move anticipating labor negotiations, General Motors commits over $2 billion towards the manufacturing of its next-generation, gasoline-powered pickups and SUVs, assuring their production into the 2030s. The announcements came over the course of seven-days this month Next-generation Silverado and Sierra pickup production is expected to begin in 2027, with overhauled SUVs production following in 2028 "We want to find a solution that's good for our employees, good for the company, because we need to continue to reinvest," Barra said of union negotiations. "Right now, we've made some important announcements about reinvesting in these plants because I think job security is very important. To do that, the company has to be successful so we can continue to develop new products that customers want to buy." Paul Waatti, manager of industry analysis at AutoPacific Inc, said "With all the headlines and focus on EVs and the surrounding investments, it's easy to think the transition is right around the corner," Waatti said. "The reality is, it's a decadeslong transition, not a yearslong, and nowhere is that more true than with full-size pickups and SUVs. They will definitely be among the last to go exclusively EV." Stellantis is no longer allocating gasoline-only vehicles to its dealerships in 14 states that follow California's emissions guidelines unless the vehicles have been ordered by customers. This strategy is happening ahead of CARB rules which do not require automakers to sell a specific percentage of zero-emission vehicles until 2026. States include: California, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Washington. Brian Maas, president of the California New Car Dealers Association, commented on the issue: "People are going to go to Reno and Vegas and Phoenix to get ICE Wranglers, if that's what they want. As the U.S. government ends the suspension of student-loan payments in late August, close to 26.6 million Americans will start making monthly payments again. This shift is anticipated to collectively cost up to $10 billion per month, causing
Fri, June 16, 2023
More Than Cars Episode 2, Behind The Scenes at Beaver Toyota of Cumming with Sat Labord
Shoot us a Text. We’ve got that Friday feeling as we spend time with Sat Labord, Service Leadership at Beaver Toyota of Cumming. She shares about the importance of customer care and what that means in the service lane. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, June 15, 2023
Buckhead Was All The Energy, Top Automaker Roundup, and Tickets All In
Shoot us a Text. It's Thursday after Live Tonight in Atlanta and we have heavy legs but full hearts. We recap the night’s events, catch up with Tesla and Toyota, and look at how ticketing sites are going ‘all in’ on their website pricing standards. Show Notes with links: Around 85% of Toyota Motor's shareholders voted to re-elect Chairman Akio Toyoda during an annual general meeting, marking his lowest approval rating in five years, which was 96% just last year, when Toyoda held the roles of president and CEO. The reduced approval rating is believed to be due to concerns over governance transparency, especially among some U.S. and European institutional investors, rather than company strategy as some are desiring a greater disclosure of its climate change lobbying activities Prior to the shareholder meeting, Toyota announced ambitious plans to introduce new technologies, including solid-state batteries, to enhance future electric vehicles' performance and affordability. Experian data show that Tesla registrations are booming at a 53% increase from the same period last year. From January through April, Tesla's Model Y crossover had a 99 percent increase in new registrations over last year, while the Model 3 sedan grew by 28 percent, Experian said. The Model X crossover's registrations rose 15 percent, while the Model S sedan's fell 67 percent. Tesla's U.S. registrations totaled 211,842 through April, accounting for a 60.8% share of the electric vehicle market. Top US ticket sellers, Ticketmaster and SeatGeek,will adopt 'All In' pricing , displaying ticket costs including fees upfront. This follows a continued campaign from the White House against concealed 'junk fees', aiming to simplify purchases, foster fair competition, and enhance transparency in sectors from entertainment to airlines. Live Nation, the world’s largest concert promoter, said it would roll out upfront all-in pricing in September. It plans to roll out a default display showing one clear, total price to fans buying tickets to shows at the more than 200 venues it owns. “For far too long, fans have lacked important consumer protections that other industries take for granted,” SeatGeek Chief Executive Jack Groetzinger said. “Fans want to understand the full cost of their purchase, with no deception or surprises along the way.” Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at <a href=
Wed, June 14, 2023
Toyota is Buzzing, Lithia is Growing, and Reddit is Quiet
Shoot us a Text. Wednesday is for the Troublemakers as our team descends on Atlanta to host Live Tonight at Buckhead Theatre. Today we are talking about Toyota news driving their stock valuation, Lithia’s first purchase of the year, and Reddit ghosting Google. We have been following the roller coaster week of Toyota news and after their EV plan announcements, Wall Street had rose colored glasses on as stocks rose 5%. The president of BEV Factory, Takero Kato, stated that Toyota is targeting a driving range of 1,000 kilometers (620 miles) for its EVs and aims to produce about 1.7 million vehicles by 2030. Toyota has set a goal of achieving sales of 1.5 million all-electric vehicles per year by 2026, and selling 3.5 million all-electric vehicles annually by 2030. The company is now accelerating the development of BEVs and is "determined to become a world leader in battery EV energy consumption." Lithia continues its growth trajectory as they complete the purchase of 14 dealerships from Virginia-based Priority Auto. Dennis Ellmer, from whom the dealerships were bought, will stay on with Lithia and continue to serve as CEO of Priority Auto. He has retained the two Lexus stores separately. The acquisition is expected to add $1.2 billion in annual revenue to Lithia. So far in 2023, Lithia has acquired dealerships representing $3.2 billion in annual revenue, including its March purchase of Jardine Motors Group in the United Kingdom. This transaction marks Lithia's first U.S. dealership deal of 2023 and is the biggest deal of the year in terms of the number of dealerships acquired. Reddit users have taken to the internet to fight their battles (well, I guess they always do that). With looming changes to the Reddit API structure , thousands of subreddits have gone dark, giving search engines headaches trying to find quality content. Over 8,000 subreddits have gone dark in protest of Reddit's upcoming API changes. This has significantly impacted the availability of information from these subreddits. Even for those who don't regularly use Reddit, the blackout has an impact. Reddit links often appear at the top of search
Tue, June 13, 2023
Super Capacity EV Batteries, Reinstating the Frontline Retailer, Chatbot Drive Thru
Shoot us a Text. Welcome to Tuesday as we talk about Toyota’s revealing of future EV battery tech. We also talk about Nike’s pivot back to front line retailers, as well as Chatbot Drive Thru woes. Amidst a turbulent season following its annual shareholder meeting, Toyota drops some details on its upcoming battery technology , outlining its plan to become a leader in the EV space. The carmaker plans to launch new battery technology and refine its production system for efficient manufacturing. Toyota revealed its plan to develop solid-state batteries for electric vehicles capable of as much as 900 miles range, as well as software systems that update automatically. The company outlined five new batteries that will debut by the end of the decade, starting with a next-generation lithium-ion power pack to be released in 2026. Later versions will include bipolar lithium iron phosphate batteries and nickel-based bipolar lithium-ion batteries, as well as two all-solid-state batteries. New aerodynamics for its next-generation EVs using technology from (literal) rocket science. They had strategized a cutting off of front line retailers and going direct to consumer instead. Now, Nike is reversing course and reintroducing wholesale partners back into the business model. This decision comes after Nike significantly reduced its number of retail partners in 2017 to better focus on direct-to-consumer (DTC) sales, even cutting ties with companies such as DSW, Big 5 Sporting Goods, Dunham’s Sports, Urban Outfitters, Dillard’s, and Zappos. Nike is acknowleging the importance of providing multi-channel options for customers and the potential loss of customers due to withdrawing from retail channels. Nike is also working on improving its relationship with Foot Locker, with plans to expand their Nike business in 2024. If AI is going to dominate humanity, it will first need to learn how to take an order for a burger and fries correctly . This is already being tested in various fast food drive-throughs, with mixed reviews: Major fast food chains like White Castle, McDonald’s, Wendy’s and Dunkin’ are testing AI chatbots to take orders at drive-throughs. While these AI systems are designed to streamline operations and reduce workload, customers have had varied responses to the tech White Castles new bot, Julie, is prompt and polite. Even so, 3 out of 10 customers chose to move to a human order
Mon, June 12, 2023
More Than Cars Makes News, Unusual Toyota Annual Meeting, $3B Worth of Electric
Shoot us a Text. Welcome to a fresh week in Retail Auto as we talk about the automotive show that made news over the weekend…OURS! We also talk about dissension in the Toyota Annual Meeting, as well as a calculation on Tesla’s charging win. From reporting the news to making the news. We want to thank Dan Shine, Editor of Automotives News Fixed Ops Journal, and writer Abigail Ham for publishing this piece on our More Than Cars Series "More Than Cars" hosts Paul Daly and Kyle Mountsier grew to love the auto industry while working in it. Now, they want to teach others to love it, too. "More Than Cars" aims to highlight what Daly and Mountsier feel is an overlooked side of car sales and service: the humans behind it. The duo, who run the auto retail content creation company Automotive State of the Union, hope to make seven more episodes. They will film the second episode in Atlanta this month. Amongst a rare show of dissension, Toyota's annual meeting has sparked a debate over Chairman Akio Toyoda's cautious approach to electric vehicles, with shareholders including the New York City comptroller’s office and the California Public Employees’ Retirement System considering voting against his board reappointment due to his resistance to an all-electric lineup. “Even in this difficult business environment, Chairman of the Board Akio Toyoda has been strengthening our competitiveness from a long-term perspective,” a spokesman for the company said. Although the probability of Toyoda's removal from the board is low, even a slight reduction in support could be seen as an embarrassment in Japan's consensus-driven corporate culture. It is not uncommon for shareholders to tearfully thank Toyoda, the grandson of the company’s founder He received a 96% approval for renomination to the board a year ago Under new CEO Koji Sato, Toyota is accelerating its push into EVs without setting a definitive date for an all-EV lineup, contrasting with automakers like GMand Honda. The company plans to be carbon neutral by 2050 and aims to halve new-vehicle carbon emissions by 2035, compared with 2019 levels. Tesla could be adding $3B to its revenue by 2030 and up to 5.4B by 2032 from GM and Ford partnerships alone according to Piper Sandler analyst Alex Potter who released a research note late last week While these revenue figures may not be significant compared to Tesla's existing annual revenue exceeding $80 bill
Fri, June 09, 2023
GM Goes Super, Apple’s Real Time Charge Status, Gen Z Loves Bricks
Shoot us a Text. We’ve got that Friday feeling as we talk about the new partnership between GM and Tesla. We also cover a new EV friendly addition to Apple Maps, as well as a survey that reveals Gen Z’s love for in-person shopping. Following a similar announcement with Ford last month, Tesla and General Motors are partnering to give GM electric vehicles access to Tesla's Supercharger network. GM will also integrate Tesla's North American Charging Standard connectors into its EVs from 2025 onwards. This collaborative move aims to boost the adoption of electric vehicles by enhancing access to a robust charging infrastructure across North America. GM's agreement with Tesla will nearly double the number of chargers available to its customers, potentially saving the company $400 million in infrastructure investments. “You have our full support and we’re incredibly excited to partner with you on this and just really make it a fantastic electric vehicle experience, whether somebody is driving a car from GM or from Tesla,” Musk told Barra during the announcement on Twitter Spaces “We have a real opportunity here to really drive this to be the unified standard for North America, which I think will even enable more mass adoption,” Barra said. With the release of iOS 17, Apple Maps will now show real-time charging availability information for EVs, further enhancing its features for owners. The option to set preferred charging networks, such as Electrify America, Chargepoint, and Tesla’s Supercharger network, will also be made available to users. The system will also only display charging options compatible with the user's specific EV model. In addition to suggesting preferred networks, the feature will provide details about the number of available stalls at each charging station and the occupancy status. Will display charging options compatible with the user's specific EV model. Currently, this feature is available only to cars that support Apple Maps EV routing, like the Ford Mustang Mach-E and Porsche Taycan, with more EV makers expected to adopt this feature in the future. According to a new report by the International Council of Shopping Centers, Gen Z enjoys shopping in real life stores every bit as much as they do online. 95% of Gen Z respondents enjoy online shopping while 97% also appreciate shopping in physical stores. 30% of Gen Z shoppers cited immediate access to products as a key reason for in-store sh
Thu, June 08, 2023
Labor Showdown, VW Dealer Markup Warnings, One Player To Rule The MLS
Shoot us a Text. It’s a beautiful Thursday to be in Retail Auto. Today we’re discussing the upcoming UAW labor negotiations around EV joint-ventures as well as VW of America CEOs warning to Dealers. We also talk about the insane buzz around the highest paid athlete in the world. In what could be a drawn out fight , the United Auto Workers (UAW) labor union prepares for negotiations with Detroit automakers GM, Ford, and Stellantis. The conflict is regarding pay for 18,000 future workers at their electric-vehicle battery plants. These workers, hired through a myriad of joint ventures, are not covered by existing labor contracts, posing complexities for the UAW in ensuring equitable wages and conditions. The Ultium Cells LLC plant, a joint venture between GM and LG Energy, is an example of the complexity, with the UAW trying to establish a unique deal for its 1,100 workers there who aren't covered by the master labor contract. While UAW aims to put all battery workers under its master contract, manufacturers argue the joint ventures are about accessing battery production and knowledge rather than compensation issues. “The transition from internal combustion to electric has to be a just transition,” said Mike Booth, a UAW vice president who will lead talks with GM this year. “We have to make sure no one is left behind.” As the long anticipated electric microbus readies for release, Volkswagen of America's CEO, Pablo Di Si, warns dealers against price gouging, recognizing the potential for excessive markups, Di Si emphasized the need for a fair pricing system for both consumers and dealers, but has yet to propose a specific solution. The CEO also opposes introducing a First Edition of the ID.Buzz, a common strategy used by automakers to boost demand and dealer profit, as he believes customers should not pay more. “We cannot make a mistake [with] this vehicle with respect to the customer. We cannot have markups.” In an absolute coup for Major League Soccer and Apple, Lionel Messi has announced that he will be joining the American soccer club Inter Miami later this year. The winner of 7 Ballon d’Ors, 4 Champions Leagues and the 2022 World Cup will likely receive a cut of Apple’s MLS streaming revenue, Adidas profit-sharing and a chance at club ownership in the future. Apple signed a 10 year / $2.5B streaming deal with MLS, available through Apple TV plus, and Messi’s presence makes it much more appealing to a global audience. Ticket prices for I
Wed, June 07, 2023
Tesla Skirts NY, GM Sees No EV Profit Through 2030, Service Dept Book Club
Shoot us a Text. Welcome to Wednesday as we talk about a Tesla deal with the Oneida Indian Nation allowing it to sell cars in Upstate NY. We also talk about GM’s outlook on EV profits through 2030, as well as a unique approach to service department efficiency. Tesla's landmark partnership with the Oneida Indian Nation will see the establishment of its first direct sales outlet in Upstate New York. The showroom, set to open in 2025, will boost access to electric vehicles and charging infrastructure in the region, augmenting the push towards green energy solutions. The agreement with the Oneida Indian Nation provides a legal framework for Tesla's expansion into Upstate New York, overcoming the state law that mandates vehicle manufacturers to sell through dealerships. The 25,000-square-foot showroom will be situated in Madison County on Oneida Indian Nation-owned land, significantly enhancing Tesla's reach beyond the New York City area. Tesla will begin delivering pre ordered vehicles from the site right from the casino while the showroom is under construction GM CEO Mary Barra has stated that she doesn't foresee profitable electric cars in the $30,000 to $40,000 range until the end of the decade or perhaps even later. Barra acknowledged that Tesla currently leads in EV technology, profitability, and scale, but she believes that this lead is not permanent and GM can catch up. She mentioned that EV battery costs are still too high to build profitable mass-market vehicles that sell for $30,000 to $40,000. However, she predicted that EV and combustion vehicle costs will equalize sometime in the latter part of this decade. The article points out that GM is currently selling the Chevy Bolt EV starting at $26,500 and has promised a starting price of around $30,000 for the Equinox EV. The profitability of these models is unclear. Service departments are finding increased efficiency and revenue through an unique approach: book clubs . Sherwood Ford in Alberta and Shaheen Chevrolet in Michigan both have implemented reading programs with much success. At Shaheen, team leaders read Extreme Ownership by Jocko Willink one chapter at a time, each writing a synopsis and discussing how they can apply the principles. After implementing some of the ideas, one service advisor's average repair order for customer-pay work, which jumped 23 percent i
Tue, June 06, 2023
Kia Tops Inventory Efficiency Ranking, What Group Is Best At Service Scheduling, Apple AR
Shoot us a Text. Welcome to Tuesday, friends. Today we are talking about who topped the charts, first in inventory efficiency, and then in service scheduling. We also cover the buzz around Apple’s new Vision Pro headset. Kia has retaken the top spot in U.S. inventory efficiency, surpassing Toyota, according to Cloud Theory's Index. Backed by the strong performance of its Telluride and Sportage models, Kia scored 155 on the index, while Toyota slid to 149.6. Lexus and Honda also made significant gains. Cloud Theory's "Inventory Efficiency Index" assigns scores to auto brands based on active inventory and sales data relative to competitors. A score below 100 signifies supply exceeds demand, while a score above 100 indicates the brand's vehicles are selling more efficiently than average Regional leadership in the U.S. varies, with Kia, Lexus, Toyota, and Honda each dominating at least two regions, contributing to their national level competition for inventory efficiency The 2023 PSI Service Telephone Effectiveness Study by Pied Piper ranked the 17 largest auto dealer groups based on the ease of scheduling service appointments by phone. Group 1 Automotive took the lead with a score of 65 out of 100, followed by Berkshire Hathaway Automotive (63) and Ken Garff Automotive Group (62). Scores are derived from 39 efficiency and quality data points. The study, conducted between January and May, involved calling each dealership, posing as a customer to schedule service, with 62% of the score based on efficiency and 38% on quality metrics. Out of the 1,739 dealerships included in the study, 13% had scores above 80, with 20% below 40. “Customers who find scheduling a service appointment difficult vote with their feet by moving to another dealership or independent shop, or postponing service,” Pied Piper CEO Fran O’Hagan said in a news release At yesterday’s Apple WWDC, the company Apple unveiled its much anticipated VR Headset , the Vision Pro. Coming in at $3499, the headset is over 3x the cost Meta’s Pro headset and 7x the cost of their most popular version. The headset features a high-resolution 4K display for each eye, impressive video passthrough, and advanced hardware interactions. Users are able to toggle between real world and virtual views, capture images and video, and use their hands as the controllers Apple is positioning Vision Pro as a “powerful spatial computer” or an AR device Overall, th
Mon, June 05, 2023
Toyota Expanding Fuel Cells, Sub 30k Tesla Now, Not Yet Skynet w/ guest host Jordan Cox
Shoot us a Text. It’s a beautiful Monday in the car business! Jordan Cox joins us as we talk about Toyota’s expanding plans for hydrogen fuel cells. We also talk about Tesla’s battery cell swap getting the price of a new Model 3 under 30k w incentives, as well as a follow up on last Friday’s military drone story. With a plan to double its sales of fuel cell vehicles , Toyota is planning a hydrogen-powered version of its Crown sedan as part of its carbon-neutral strategy. As opposed to creating a separate vehicle nameplate to carry the fuel cell like the company did with the Mirai, the drive train will be one of the options on the already existing Crown, which will also be available as a hybrid. In an April briefing, Toyota Executive VP Hiroki Nakajima stated that the mass production of fuel cells, owing to their lightweight nature and quick refueling, will be driven by commercial vehicles. The company plans to promote fuel cell electric vehicles (FCEVs), starting with medium to heavy-duty trucks. Just last week, Toyota decided with Daimler Truck to combine their commercial truck subsidiaries, Hino and Mitsubishi Fuso, primarily to develop hydrogen, autonomous, connected, and electrified tech. It's not clear whether this sedan will be available in the U.S. Tesla buyers are in for a surprise as the full $7,500 federal tax credit is now applicable to its most affordable Model 3 according to the online configurator, bringing the effective price down to about $30,000 for eligible buyers. The federal tax credit for Tesla's Base Model 3 which starts at $40,240, was previously $3,750; the increased tax credit essentially cuts the base model's cost down to $32,740 after federal incentives. Many states have additional incentives which would bring the price below $30k It remains unclear how Tesla managed this feat, given previous limitations on credits for certain models, but it is assumed they allocated US made battery packs to the model and redirected Chinese made packs elsewhere. The tax credit is also applicable to new inventory Model 3 vehicles currently available for delivery, which start at $37,830, thus bringing their price down to nearly $30,000 after tax credits for eligible buyers. Following up on a story we covered on Friday, the U.S. Air Force and the Royal Aerospace Society have clarified comments made by Colonel Tucker “Cinco” Hamilton regarding a rogue AI drone simulation saying <a href='https://jalopnik.com/drone-ta
Sat, June 03, 2023
Where My Jeeple at?
Shoot us a Text. It's a fantastic Saturday to be in the car biz and today we're telling the story of one Northern PA Dealership who finally opened a new Jeep obstacle course . So naturally, we try to guess what they have at the snack bar. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, June 02, 2023
Inventory On The Low, Auto Service Professionals Month, Drone AI Turns On Human Operator
Shoot us a Text. We’ve got that Friday feeling as we talk about the new inventory normal, auto service professionals month, as well as a slight twist in a military drone exercise. According to automotive industry consultancy Cloud Theory, pre-COVID inventory levels might never return . Even though sales have rebounded surpassing pre-pandemic levels, inventory has stayed low. This development has led to an industry-wide reconsideration of inventory management, with a leaner approach proving to be more profitable for many manufacturers. Pre COVID levels were 3-3.5M Inventory fell below 1M by the fall of 2021 and increased towards 2 million in late 2022 and early 2023 Cloud Theory's head of data science and analytics, Rick Wainschel, predicts a new normal with inventory levels around 2 to 2.5 million, coupled with a more balanced trim mix and a turn rate of about 40 to 50 percent. The National Institute for Automotive Service Excellence (ASE) has named June as Automotive Service Professionals Month . In a statement, ASE highlighted the crucial role of auto service professionals in maintaining increasingly complex vehicles and ensuring driver safety. The institute encourages recognition of these professionals, in person or via social media with the hashtag #ASPM. During a joint US-South Korean military drill, an AI drone surprisingly treated its human controller as a mission hindrance . This eerie incident, straight out of a science fiction movie, is sparking intense discussions about the rules of using AI in war and how to keep humans in charge of self-operating weapons. The drone was given ‘points’ to kill SAM sites. The human operator had the discretion to give the drone ‘kill’ or ‘no kill’ commands When the operator gave the ‘no kill’ command, the drone deemed the human a threat to its point gaining mission and took out the operator They then introduced a new rule saying ‘don’t kill the operator’ so the drone took out the communications tower so it could no longer receive the ‘no kill’ orders Quote from Col Tucker ‘Cinco’ Hamilton, the Chief of AI Test and Operations, U.S. Air Force: “You can’t have a conversation about artificial intelligence, intelligence, machine learning, autonomy if you’re not going to talk about ethics and AI”. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the con
Thu, June 01, 2023
Toyota’s First US Made EV, Scout’s New Designer, Using Your Face To Start Your Car
Shoot us a Text. It’s the first day of June and we are ready for a great summer! Aren’t you? Today we talk about Toyota’s first US Made EV, Scout Motors’ pillaging of a long-time Jeep designer, and the first car you can start with your face. Seemingly late to the full EV game, Toyota has chosen its largest US production plant in Georgetown, KY assembly plant to produce its first U.S. built full electric vehicle by 2025 The batteries for the three-row electric crossover will be sourced from a new Toyota complex in Liberty, North Carolina, which is seeing an additional $2.1 billion investment, taking the total investment to $5.9 billion. Susan Elkington, president of Toyota Motor Manufacturing Kentucky said "We are able to be very close to our production engineering location, plus we have an unbelievable workforce at this site that can actually really take on the charge in a very short period of time to make sure the product is successful." She also indicated that the addition of the EV line will not effect the current production output of over 550k vehicles per year Volkswagen-backed Scout Motors announces former lead designer from Jeep, Chris Benjamin, as its new Design Chief who has worked with Mercedes-Benz, BMW, Volvo, and Stellantis.His recent work on Jeep Wagoneer's interior design has earned broad industry accolades. Benjamin’s role will transcend design to also include concept development, user experience, and how design and tech come together in Scout vehicles. Scott Keough, CEO and President of Scout Motors, said, “Chris’ work is prolific. For nearly 25 years he’s brought to life vehicles that stand out on the road. His thumbprints are all over many of the most beloved off-road vehicles in the market today. I’m confident that Chris will build on that experience as he defines the next chapter of design for Scout and electric utility vehicles.” The company is creating an electric truck and SUV with roll out plans by the end of 2026 from their new factory near Columbia, SC. Genesis is the first automaker to use facial recognition technology on its new GV60 which will allow owners to access and start their vehicles using only their…face. The biometric tech will allow GV60 owners to access and start their vehicles just by using their face, no key fob or smartphone needed. The system uses a near-infrared camera and advanced deep-learning processing for this function. The feature, dubbed 'F
Wed, May 31, 2023
VW Opts Out of Increases, Big Autonomous Trucks, 1 Sentence Warning
Shoot us a Text. We’re closing out a beautiful 31 day month as we talk about VW’s plans to NOT enter the EV pricing war. We also cover an impressive EV trucking network, as well as a one sentence warning from people who typically talk a lot. Amidst growing pressure from emerging Chinese manufacturers, Volkswagen's COO, Ralf Brandstaetter, has announced the company's refusal to partake in China's discount battles, emphasizing sustainable profitability over market share. "Our market position is strong enough. For us, the focus is on profitability, not sales volume or market share," said Brandstaetter VW has been the sales leader in China for years until Chinese manufacturer BYD outsold them this year “Volkswagen aspires to be the biggest international carmaker in China, he said, adding that it's irrelevant if another national manufacturer sells more than it does. "If we achieve sales of more than 4 million vehicles in this environment in 2030, with corresponding profitability, that is a position we could very well live with," he said. Autonomous EV freight company Einride is set to revolutionize the United Arab Emirates' freight landscape , partnering with the Ministry of Energy and Infrastructure to deploy a comprehensive electric, autonomous freight network. Covering over 550 km, the initiative includes 2,000 electric trucks, 200 autonomous trucks, and eight charging stations across the country's "Falcon Rise" grid. The ambitious project is expected to be rolled out over the next five years, aiming to significantly reduce emissions in the UAE and optimize industry operations. The plan includes deploying 2,000 electric trucks and 200 autonomous trucks, with charging infrastructure to support these vehicles including eight charging stations with over 500 charging points. Einride is a Swedish company and is only 7 years old and already has several impressive innovations like the “Remote Pod Operator” In a one sentence warning we would have raised a collective eyebrow at 24 months ago, tech leaders and experts have asserted that the existential risk posed by artificial intelligence (AI) should be on par with avoiding nuclear war. This statement was publ
Tue, May 30, 2023
Infotainment Boost, Employee Suggestion HELPs Millions, Dealers Making a Difference
Shoot us a Text. Welcome to the home stretch for the month of May! Today we talk about a new partnership that will bring advanced infotainment to the masses. We also talk about one employee’s suggestion that could save lives, as well as one Dealer doing their part to serve their community. In another high tech collab announcement Nvidia and MediaTek announce a landmark collaboration to power the next generation of vehicle infotainment systems. With AI and immersive capabilities, the partnership aims to revolutionize the auto industry with a focus on video streaming, gaming, and interactive driver communication The partnership was unveiled at the Computex technology trade show in Taipei. wherein, MediaTek will integrate an Nvidia graphic processing unit chiplet and Nvidia software into the system-on-chips it supplies to automakers for infotainment displays Includes dashboard displays showing the environment around the vehicle, and cameras for driver monitoring Historically, tech like this was focused on high end vehicles, but this agreement will bring this tech to a wide range of vehicles: "There are a lot of segments they (MediaTek) are addressing that Nvidia has not addressed," said Danny Shapiro, Nvidia's vice president, automotive. The first products are slated for release in 2025 A suggestion by a disabled Steallantis employee led to the company’s upgrade of over 1.8 million vehicles to issue hazard alerts, highlighting the company's drive towards safety and innovation. This new feature named “HELP: Hazard Enhanced Location Protocol” warns drivers of imminent threats like approaching firetrucks and ambulances The employee almost collided with an emergency vehicle and submitted the suggestion through the company’s Star*Up, an internal competition, in which employees around the world present their ideasTrpko Blazevski, Stellantis' manager of global innovation and digital partnerships, said the architecture of the automaker's vehicles allowed it to seamlessly push the over-the-air update. The idea for the alerts "really hit our heartstrings," he said. "We said we need to implement this. We need to do something for our customers.” A key element of the system is HAAS Alert's Safety Cloud platform, which is used by thousands of public and private roadway fleets in North America. HELP is still in the evaluation phase and a decision is expected in three to six months. Cavender Auto recently participated in the United Way Shoebox Program, setting a store record by
Tue, May 30, 2023
A Day To Remember, A Day To Enjoy
Shoot us a Text. Happy Memorial Day to everyone in Retail Auto. Whether you are grilling hot dogs at home or on the lot, we hope your breath in the fullness of the freedom that cost so many, so much. https://apnews.com/article/memorial-day-sales-origin-holiday-travel-fb7ff68ede0b98e9d8b4f0ee3b267785 AAA said more than 42 million Americans are expected to travel 50 miles or more during the holiday weekend. The holiday officially started in 1868 and was called Decoration Day, after a group of Civil War veterans called for decorating war graves with flowers. In 1911, the Indy 500 moved its annual running to Memorial Day. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Sat, May 27, 2023
Saturday Dealer Stories: Cozy Coupes, WNY Foster Closet and West Herr Automotive
Shoot us a Text. Welcome to Memorial Day Saturday! Today we talk about one of our favorite dealer stories from the week, Little Tikes Cozy Coupes that have been redesigned by Team West Herr to benefit the WNY Foster Closet. Read the original story here ! We have 4 guests joining us: Chris Reeves, Head Writer at ASOTU Matt Lasher, Marketing Director at West Herr Elizabeth Hall, Executive Assistant at West Herr Bradley Gelber, Social Media Manager at West Herr Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, May 26, 2023
Ford and Tesla Going Steady, Buttons Beat Back Screens, Airport Toys Rising
Shoot us a Text. Welcome to the pregame of a great Memorial Day Weekend. Today we talk about Farley and Musk getting cozy, tactile buttons making a comeback, and a touch of our childhood coming to DFW Airport. In a landmark move towards EV infrastructure unification , Ford announced a deal with Tesla to access its Supercharger network from 2024 which will allow Ford's electric vehicles to use Tesla's extensive charging network. The announcement came, appropriately, from Ford CEO Jim Farley and Tesla CEO Elon Musk on Twitter Spaces yesterday. This deal makes Ford the first major automaker to adopt Tesla's proprietary charging standard, connecting Ford's EVs to the largest high-speed Supercharger network in the U.S. Ford electric vehicles fitted with the Combined Charging System (CCS) port will be able to access Tesla's V3 Superchargers through a Tesla-developed adapter. From 2025, Ford plans to equip future EVs with Tesla's charging standard, eliminating the need for an adapter. Goodbye, frustrating touchscreens, hello old friend : Buttons are back! Responding to considerable consumer dissatisfaction, several leading car manufacturers are reversing the trend of intricate touch screens that have dominated dashboard design in recent years. Notably, Porsche is leading the charge by reintroducing buttons in their 2024 Cayenne model. Nissan and Hyundai are also lauded in the article for resisting the touch screen trend, underscoring a conscious commitment towards ensuring driver safety. 2013 guidance from the NHTSA recommends that a driver should be able to complete any infotainment task with glances of under two seconds, with the total time spent looking away from the road not exceeding 12 seconds Touchscreens also happen to be the cheapest way to add functionality The iconic toy store of your childhood, Toys R Us, wants to help you make good use of those layovers with a new store in Terminal A of the Dallas Fort Worth International Airport, marking its first-ever airport location. The store will feature a life-size 3D giraffe and an array of top brand toys, and is scheduled to open in time for the 2023 holiday season Yehuda Shmidman, CEO of WHP Global, who acquired Toys R Us in 2021, said in an announcement that the concept could be introduced in airports worldwide. The parent company has recently increased its footprint by 50% by introducing Toys R Us store-in-stores at
Thu, May 25, 2023
VinFast Screens Go Blank, GM CFO Buys GM Stock, Staples Goes Human
Shoot us a Text. Welcome to a beautiful Thursday in the Auto Industry, folks. Today we talk about another glitch in VinFast’s US Launch. We also cover GM CFO’s recent purchase of GM stock, as well as a new campaign by Staples that touts humans over AI. Vietnamese EV maker VinFast recalls its entire first US batch due to a safety risk. This decision follows the U.S. National Highway Traffic Safety Administration's warning about a software error in the dashboard of 999 VinFast's VF 8 vehicles, potentially increasing crash risk. Software error in the dashboard display causes it to go blank while the vehicle is in motion 700 of the 999 vehicles have yet to be delivered The company isn’t aware of any incidents and an update is set to go out today In a move deemed 'unusual' by analysts, General Motors CFO Paul Jacobson has invested $1.01 million of his personal funds to buy 31,000 GM shares. The move seems to be an indication of Jacobson's confidence in GM's transition to electric vehicles, amid GM's market cap being lower than Ford's "I’m sure he finds the stock quite undervalued and he believes in GM’s EV transformation," said David Whiston, auto analyst for Morningstar. "Paul’s stock purchases reflect his confidence in our ability to deliver both today and into the future as we grow our EV portfolio, and scale Cruise and other growth opportunities," said GM spokesman Jim Cain in an email to the Detroit Free Press. CEO Mary Barra has been in the role for 9 years and has only purchased $26k worth of GM stock by comparison Staples has introduced a new campaign called "Business is Human" to showcase the irreplaceable value of human interactions in the age of growing AI reliance. The campaign highlights the unique roles and expertise of Staples staff, asserting that customer service is more than just an algorithmic exchange. The initiative aims to remind consumers that despite the digital evolution, Staples values personal connections, expert advice, and the human touch that builds customer trust and loyalty. The campaign presents its employees in various ‘human’ situations like one employee sharing their personal "Workday Kickstart," expressing their preference for a good cappuccino, underscoring that "life is too short for bad coffee." Hosts: Paul J Daly and Kyle Mountsier Get the Da
Wed, May 24, 2023
Bringing Back AM, Electric Cali in 2035, 100 Brand Reputations
Shoot us a Text. It’s a big day for the Auto Industry as we celebrate some of its most inspiring stories with our new series, More Than Cars. We also get into AM radio coming back to EVs, Cali ending gas…again, as well as 100 of the most top-of-mind brands ranked. Ford Motor has announced plans to bring back AM broadcast radio in their EVs starting in 2024 due to concerns over public safety. The decision was influenced by discussions with policy leaders highlighting the importance of AM radio in emergency alert systems. New Ford and Lincoln models will have AM radio capabilities, while previous EV models will receive a software update. The interference caused by the electromagnetic frequencies of EV motors had led automakers like Tesla to remove AM radio from their vehicles. Emergency officials have expressed concerns about the absence of AM radio in EVs, emphasizing its role as a vital communication channel during emergencies. California has submitted a request to the Biden administration, seeking approval for a plan that would require all new vehicles sold in the state by 2035 to be electric or plug-in electric hybrids, according to a letter seen by Reuters. The plan, approved by the California Air Resources Board (CARB), aims to set yearly rising zero emission vehicle rules starting in 2026, ultimately leading to the end of gasoline-powered vehicle sales by 2035. Asks for a waiver under the Clean Air Act from EPA yet the Biden administration has repeatedly refused to endorse setting a date to phase-out the sale of gasoline-only vehicles and says it will review California's request through an open public process. The 2023 Axios Harris Poll 100 reputation rankings have been released, revealing the most visible brands in America. The rankings are based on a survey of 16,310 Americans and measure the reputations of companies that are top-of-mind for the public Top 5: Patagonia, Costco, John Deere, Trader Joes, Chick fil A Bottom 5: Spirit Airlines, Meta, Twitter, Fox Corp, FTX, The Trump Org Auto showings: Toyota 6, Honda 13, Subaru 16, BMW 24, Ford 32, GM 34, VW 56, Tesla 62, Chrysler 67, Costco jumped 24 spots. Tesla dropped 50 Hosts: Paul J Daly and Kyle Mountsier <br/
Tue, May 23, 2023
Blue Margins Rising, Charger Collab, Empty Foot Lockers
Shoot us a Text. It’s Tuesday and we’re talking about combustion margins rising at Ford, a government led charging collab, as well as Foot Locker’s Q1 woes. Ford expects its internal combustion engine volume and profits to continue their growth until 2025. At Ford Capital Markets Day 2023, executives outlined their projections for Ford Blue, the company's gasoline-powered business, According to Kumar Galhotra, head of Ford Blue, profit margins from combustion vehicles will grow from 7.2 percent today to at least 10 percent by 2026 Reductions in complexity are a primary driver of margin improvements Ford has successfully reduced the number of parts per vehicle over the past two years. F-150 pickup model has 2,400 fewer parts compared to the previous version. Total orderable combinations on the Explorer have been reduced from 1,900 to 23, and on the Expedition from 800 to 32 CEO Jim Farley said Monday that his leadership team meets once a month to focus on material and supplier cost-cut opportunities. “I’m starting to see an excitement around waste elimination; it’s not task-assigned,” Farley said. The company restated a targeted 8% margin on EVs by 2026 and plans to introduce an affordable three-row EV with a 350-mile range in 2025, as part of its Model e unit. ChargeX, a newly formed EV industry consortium announced and led by the Department of Energy, aims to enhance the reliability and usability of public EV charging infrastructure in the US by June 2025. Including 30 companies, including Tesla, Electrify America, and ChargePoint, the consortium will work together to define the charging experience, address charging reliability and usability issues, and develop solutions for scaling reliability. Charge X aims to tackle three primary issues with public EV chargers: defining and improving the customer charging experience, addressing reliability and usability problems, and developing solutions for scaling reliability as EV adoption grows. Foot Locker's shares plummeted by 27 percent as the retailer adjusted its 2023 guidance due to a surprising decline in sneaker sales citing external factors like inflation and a shift towards discretionary spending as key contributors to the downturn. Stronger than expected holiday sales followed by a steep drop of 7-9% YoY per store sales Discretionary spending is dropping with a trend toward spending on service
Mon, May 22, 2023
Ford Materializes, Chevy Goes The Distance, Consumers Rein In Spending
Shoot us a Text. We’re all business this Monday as we talk about Ford closing battery supply deals, Chevy’s surprise announcement, and consumers pulling back on discretionary spending. In a strategic move to bolster EV production, Ford has announced a series of supply deals for lithium-based battery materials as they ramp up EV production to 2 million units by 2026 Deals include: one with Nemaska Lithium for the supply of up to 13,000 tons of lithium hydroxide each year and a contract with EnergySource Minerals for lithium hydroxide from the Imperial Valley, California site, expected to be operational in 2025. The company also entered a five-year agreement with Albemarle Corp to supply over 100,000 metric tons of battery-grade lithium hydroxide, sufficient for about 3 million future Ford EV batteries The company is expected to lose $3 billion from its electric vehicle unit this year but maintains its full-year guidance of $9 billion to $11 billion of adjusted earnings before interest and taxes and around $6 billion in adjusted free cash flow. In a surprise announcement, GM released an upgrade to the Chevrolet Silverado EV Work Truck's (WT) range, boosting it to an EPA-estimated 450 miles on a single charge, 50 miles more than originally anticipated. This gives it over 100 miles more range than its closest competitor, the Ford Lightning. Our engineering team long targeted at least 400 miles of range, but they were able to go above and beyond to achieve this increase. Over the past several months, extensive development and testing unlocked the increased 450-mile range. This figure, paired with the ability to charge at 350 kW, makes the Silverado EV WT the choice electric pickup to serve fleet buyers’ needs. After all, this truck wears a Silverado badge – it’s made for tough jobs. The company also said that a lower, 350 mile range model would be available shortly and also said they are still on track for a launch in Spring of 2023 According to new government and earnings data, consumers are exhibiting more frugal behavior , focusing on essentials, and seeking affordable alternatives, as inflation continues its squeeze. Now, even higher-income consumers are pulling back on large, discretionary purchases “A consumer slowdown is underway,” said Neil Saunders, managing director of analytics company GlobalData. “Growth is a lot more sluggish than it has been for quite some
Sat, May 20, 2023
Why "More Than Cars" Is An Important Moment for The Industry
Shoot us a Text. On this Saturday episode, we take some time to talk about "More Than Cars," the upcoming docu-series from ASOTU, why its important, and how you can get involved. Learn about More Than Cars by visiting https://www.morethancars.tv/ Join the release party on March 24 at 1PM! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, May 19, 2023
Toyota Levels EV Hopes, Consumer Gives Dealers Flowers, Dupe Trade In Day
Shoot us a Text. Welcome to Friday. You’ve earned it. Today, we’re talking about Toyota’s lead scientist warning of EV over-optimism. We also hear from a random consumer who gives many Dealers praise at once, as well as a new strategy by Lululemon to combat the fakes. The top scientist at Toyota Motor Corp has cautioned that pinning all our hopes on battery electric vehicles (BEVs) for a sustainable future isn't realistic due to scarce resources and insists that putting BEVs on a pedestal could inadvertently cause some to retain their traditional, pollution-emitting cars, and neglect the value of hybrid alternatives in specific areas. Gill Pratt stated, "Battery materials and renewable charging infrastructure will eventually be plentiful," "But it's going to take decades for battery material mines, renewable power generation, transmission lines and seasonal energy-storage facilities to scale up." As an example, he pointed out in some parts of the world, where coal is still used to produce power, hybrids were better for CO2 emissions, due do the high CO2 output of coal plants Here’s a perspective from Cayce Yates Harris at VeeCon when we talked about my “Love people more…” shirt. Lululemon is taking a unique approach to combat the trend of customers buying dupes by initiating a "Dupe Swap" event. This strategy aims to get customers to try thegenuine Lululemon products by offering an opportunity to trade their knockoffs for the real thing. This initiative is a response to the growing popularity of Lululemon lookalikes, driven largely by Gen Z consumers and social media influencers promoting cheaper alternatives. Unlike counterfeit goods, these dupes don't infringe on trademarks, hence are often endorsed by mainstream outlets for budget-conscious shoppers. Lululemon's popularity, which surged during the pandemic due to an increased demand for athleisure wear. The more popular…the more knockoffs Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, May 18, 2023
Kia & Hyundai in Mexico, Used Cars Ups and Downs, & Deleted Gmail Accounts
Shoot us a Text. Thursday is for troublemakers, the ones that wear their sunglasses inside. We are talking about Kia and Hyundai making EV building plans in Mexico, used car demand despite slowing CPO sales, and how Gmail plans to say goodbye to your old spam account that is collecting dust. The Inflation Reduction Act is providing the impetus for Kia and Hyundai to invest a billion dollars in production in Mexico. The Governor of New Nuevo León, Mexico, Samuel Garcia, revealed Kia’s plans on his Twitter this week, initially saying Kia once again bets on Nuevo Leon with a “billion dollar investment to expand its plant and produce two Kia car models” later editing out the billion. The IRA makes it so that many of the automaker’s models no longer qualify for the $7500 tax credit. This move, along with plans already in place for Georgia, make it possible for Hyundai Motor Group to continue their growth in EV production and sales. Used car demand remains strong, despite caution from retailers on a waning shopper presence in the market. Morgan Automotive, a 60 store group in Florida, noted that same store used volume was up in January and February. Cox Automotive's Manheim Used Vehicle Value Index — a measurement of wholesale used-vehicle prices calculated by tracking vehicles sold at Manheim's U.S. auctions and applying statistical analysis to those figures — recorded four consecutive months of increases from December to March. April saw a downturn in CPO sales volume , but Q1 sales have kept the YOY numbers up 6%, according to Cox Automotive. “April CPO sales took it on the chin compared to March, but the pace was healthier than either January or February,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive. Google is cracking down on storage as they look to remove old accounts from Gmail as early as December of this year. The news comes over 2 years after Google removed unlimited storage from Google Photos Deleted emails will not be available for use. When the new policy starts, product manager Ruth Kricheli says the company will start with accounts that were created and never touched again and also send “multiple notifications over the months leading up to deletion” to the address and any attached recovery email. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Ba
Wed, May 17, 2023
Tesla Ads, An iPhone That Clones Your Voice, Reuters Roundup
Shoot us a Text. Welcome to Wednesday! We are still in Vegas hanging out at the Reuters Events Automotive Retail Conference. Today we look into Elon Musk changing his tune on advertising and Apple announcing some core new accessibility features that may make it easier (and more fun) for everyone to use the iPhone. In an unexpected twist , Tesla and Twitter CEO Elon Musk, announced plans to advertise Teslas despite his well stated disdain for advertising. Pressure to boost investor confidence amidst a challenging economic climate and increased competition in the electric vehicle market In 2019, Musk tweeted that he "hates advertising" and "We use that money to make the product great." "So I guess I should say advertising is awesome, and everyone should do it," Musk said at Tesla's annual shareholder meeting in Austin, Texas. "We will try out a little advertising and see how it goes." In release notes targeting better accessibility, Apple includes a feature set that will allow an iPhone to clone a user’s voice after about 15 minutes of prompt reading. The feature is meant to give those who have lost their ability to speak to type into a phone and have the onboard Live Speech to mimic their voice. Additionally, Apple is releasing features to enhance accessibility for users by creating less vibrant experiences with simpler UI and cleaner color palettes. “Accessibility is part of everything we do at Apple,” Sarah Herrlinger, Apple’s senior director of global accessibility policy and initiatives, said in a statement. “These groundbreaking features were designed with feedback from members of disability communities every step of the way, to support a diverse set of users and help people connect in new ways.” Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, May 16, 2023
Live from Las Vegas, UK Perspective of US Auto Industry with Bekki Mistri of Reuters Events
Shoot us a Text. We’re coming to you from the floor of Retail Automotive 2023, with Director Bekki Mistri of Reuters Events. She tells us what we can expect during the show, and gives us a Brit’s perspective of the American market. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, May 15, 2023
In Vegas, Will Amplify Auto Industry w/Special Guest Steve Greenfield
Shoot us a Text. It’s a wheels up Monday as we’re heading to Las Vegas for the Reuters Events: Automotive Retail conference with dealers, OEMs and Master of Ceremonies Steve Greenfield. Steve joins the show to talk about what he’s expecting in Vegas, the new podcast Amplify we’re launching with Reuters, and how MSRP is changing. Check out our new podcast Amplify, now available on all platforms. Episodes from our time in Las Vegas will be launching this week! Tesla is changing its prices again, which marks the ninth price change this year. That has Steve Greenfield asking: “When is an MSRP no longer an MSRP? What if MSRP changes weekly?” Learn about what Steve is reading and get the Automotive Ventures Intel Report . Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Sat, May 13, 2023
Our Favorite Dealer Story of the Week: Group 1 Digs In
Shoot us a Text. On this special Saturday episode we welcome back one of our writers, Chris Reeves. He shares one of his favorite Dealer stories of the week featuring Sterling McCall Honda, Sterling McCall Lexus, Sterling McCall Ford, the group's CDC team, and the Group 1 Automotive corporate office. You can read the full story here . Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, May 12, 2023
Follow Up Friday: Sales Per Person, Generative AI Vids, Twitter CEO
Shoot us a Text. Friday feels like it’s ready for us…maybe. We’re congratulating a new Dealer, following up on some of yesterday’s stories, and sharing a video that is guaranteed to to make you laugh…and maybe cry. Follow up on yesterday’s NADA Data courtesy of NADA Academy Management Instructor, Michael Lucki: “On our NADA data report, personnel is split between new and used salespeople as that is how it is on the financial statement. So the totals are independent of each other. Used=137/12. New =102/12. So if you were set up as used the average was 11.4. New average was 8.5. This number peaked in 2020 and has been on the way down the last 2 years. Let me know if you want to discuss further. I enjoy listening to your show. Keep up the good work.” This video from the Verge summarizing Google CEO Sundar Pichai’s keynote at their recent I/O conference is too good not to share on a Friday. We asked AI for the 5 best us cars of all time: Ford Model T: The granddaddy of all cars, the Model T made cars a thing. Over 15 million sold, and it practically invented road trips! Chevrolet Impala: This beauty was America's sweetheart in the '60s. It's had its ups and downs, but we still love it! Ford F-Series: America's tough-guy truck for over 40 years. It's like the Hulk of vehicles - strong, reliable, and green (eco-friendly)! Toyota Camry: The Camry's like your trusty best friend. It's got your back, always reliable, and loves long drives on the highway. Honda Accord: Affordable, efficient, and just plain sensible, the Accord's been the go-to family car for decades. It's like the comfort food of cars! Elon Musk is set to step down as Twitter CEO, with a new chief executive slated to take over in six weeks. Musk, remaining as the executive chairman and CTO, hints that a woman will fill the CEO role, with rumors pointing to NBCUniversal advertising exec Linda Yaccarino. With Musk's reduced role at Twitter, concerns from Tesla investors about his divided attention could be alleviated, allowing him to devote more time to his EV brand Which by the way raised prices on all vehicles except the Model 3 He tweeted “Excited to announce that I’ve a new CEO for X/Twitter. She will be starting in ~6 weeks! My
Thu, May 11, 2023
Auto Industry Deets, Happiest Workers, Google AI Snapshots
Shoot us a Text. It’s Thursday and we have a full head of steam as we break down the latest NADA data report, talk about a big bump in worker happiness, and discuss Google's I/O announcements. As a part of their twice yearly report, NADA’s most recent report reveals an increase in new-car inventory, but a decline in sales per dealership. The report also indicates varying market trends, hinting at potential improvements in 2023, and showing overall stable headcount growth New-vehicle inventory rose to 1.7 million in 2022, a 50% increase from 2021 Avg. number of new cars sold per dealership dropped by 8.5%, to 819 vehicles from 895 in the previous year Average of 102 new-vehicle and 137 used-vehicle sales per salesperson Chief Economist, Patrick Manzi, anticipates less market constraint in 2023, expecting inventory to grow slowly and reach nearly 2.2 million units by year-end. He highlighted that inventory recovery was slower than expected in 2022. The average new-car retail sales price surged by 9.2% to $46,287 in 2022, largely due to inflation, total sales revenue per dealership slightly increased in 2022, with new vehicles accounting for 49.7% of total sales, used vehicles 38.3%, and service and parts sales 12%. The sales of new electric vehicles also surged by 61% Total dealership employment was up to 1.07 million, from 1.06 million,in 2021. The average number of employees per store was 64 last year, up from 63 in 2021 Workers are on a happiness high , according to recent survey data from Conference Board, which reveals that satisfaction in the job market is at a 36 year high. The shift in work norms during the pandemic, particularly the rise of hybrid roles, and labor are credited for the happiness bump The survey found that those who voluntarily switched jobs during the pandemic and individuals working in hybrid roles are among the happiest workers. Men's job satisfaction was higher than women's in every component, particularly in areas such as leave policies, bonus plans, promotions, communication, and organizational culture. Despite the high levels of job satisfaction, looming concerns of a potential recession and recent layoffs at notable companies have increased anxiety about job security Google just wrapped up its annual I/O event, dropping some new devices, AI integrations with G Suite, and a big change to search. One of the standout announcements is the introduc
Wed, May 10, 2023
GM Hires Apple, Toyota Pre-Flex, Employee Only Hotel
Shoot us a Text. Welcome to Wednesday, ASOTUverse. Today we’re talking about GM tapping Apple after kicking them out. We also cover a rise in Toyota profits as they do what they said, as well as the hotel a company built only for their employees. What do you do when you cut Apple CarPlay from your future EV models and take some flack for it? You hire an Apple exec. GM has done just that by recruiting Mike Abbott, a key software executive from Apple. Abbott, has a strong record leading software projects at major tech companies such as Apple, Twitter, Palm and Microsoft, will join GM as chief software officer. He will play a central role developing GM's vehicle software and controls as GM ramps up its electric vehicle and autonomous driving efforts, Abbott's appointment underscores GM's commitment to enhance its software capabilities as the auto industry shifts towards electric and autonomous vehicles. When Toyota said they were getting more serious about EV sales, they weren't kidding. Earlier today, the company's new CEO, Koji Sato, announced a projected 10% rise in operating profit and a fivefold increase in EV sales, targeting 202,000 units worldwide this business year. This aggressive electrification push follows easing global chip shortages and indicates Toyota's strategic shift towards battery EVs. The announcement comes after operating profit for the fiscal fourth quarter through March increased by more than a third The refreshed plan to lean into EVs more aggressively was announced and installed just last month Supplies loosening also is playing a part as the company said "We expect an increase in (overall) sales volume in all regions and production volume of 10.1 million (vehicles), due to such factors as ... improvement in semiconductor supply," Toyota said in a statement. That would represent output growth of 11% versus the previous year American Airlines is upping the game on keeping their staff comfortable and focused while traveling and training with the opening of a beautiful, new hotel in Dallas that's just for them. The $250 million Skyview 6 hotel, located on the airline's corporate campus, was designed with input from employees and includes features based on feedback that prioritize comfort and community. The hotel has incorporated unique features like a large cork strip in each room for displaying training materials, magnetic black out curtains for those time zone sensitiv
Tue, May 09, 2023
Texas Lithium, Fortnite Dashboard, A.I. Fast Food Order Taking
Shoot us a Text. It’s only Tuesday and we’ve already gotten so much done. We’re keeping pace today as we talk about the new lithium refinery going up in Texas, as well as Epic games getting into auto, and a new A.I. fast food order taker. If that doesn’t sound like 2023, we don’t know what does. Tesla is now the first automaker to enter the lithium refining space as it breaks ground on a massive Texas lithium refinery capable of producing enough lithium for 1 million electric vehicles by 2025 The company is claiming a much cleaner process of refining lithium using materials like soda ash. Musk said you could live in the center of the plant without “suffering any ill effect” Texas Governor Greg Abbott was on hand at the announcement event and said: "Texas wants to be able to be self-reliant, not dependent upon any foreign hostile nation for what we need." In a call last year, Musk begged entrepreneurs to get into the lithium refining business and likened it to “printing money” stressing the company didn’t want to get it to the space but saw no other viable options to secure the supply The company shared a rendering of the new Corpus Christie, TX facility Auto tech company, ECARX is set to announce its partnership with Epic Games , the creator of Fortnite, to integrate Epic's Unreal Engine into vehicle displays. Primarily designed for EVs, This collaboration will enable drivers to interact with 3D visuals of gauges and control car features in real time to provide a more immersive experience and be a differentiator for it’s current clients such as Volvo, Mercedes-Benz, and Smart “It is the experience that will make you reach that tipping point and actually decide to buy something,” said Christine Gall, head of Human-Machine-Interface and User Experience at Lynk&Co Design, an automaker and existing customer of ECARX U.S. owned Epic Games is located in Cary, NC, while Chinese Company ECARX is headquartered in London. CKE Restaurants Holdings, the parent company of popular fast food chains Carl’s Jr. and Hardee’s, is taking a bold step towards automating drive-thrus by partnering with AI companies Presto Automation, OpenCity, and Valyant AI to introduce voice-ordering automation at drive-thru locations across the country The initiative is set to enhance accuracy, speed, and revenue while addressing staffing sh
Mon, May 08, 2023
GM Tops R&D Investment, Cybertruck Parts, Buffet Drops Gems
Shoot us a Text. It’s a beautiful Monday in the Car Biz as we do our best to pick up all the gems Warren Buffet dropped during the annual Berkshire Hathaway shareholder meeting. We also talk about manufacturer investment in R&D, as well as a massive Cybertruck parts order. Although VW spends the most overall on R&D , General Motors (GM) leads the auto industry in R&D spending as a percentage of its 2023 revenues, reflecting significant investments in battery power, software, and connectivity. GM 6.25, MB 5.67, VW 5.13 (GM 9.8B, MB 9.3B, VW 15.8B Bottom of the list is Tesla at $3B (3.7%, Hyundai at nearly $2.5B and Nissan and Renault at $2.3 B Tesla has reportedly secured a significant order worth around $230 million for interior parts from Korean supplier Seoyon E-Hwa for its upcoming Cybertruck. Seoyon E-Hwa to supply A, B, and C pillars for the Tesla Cybertruck until 2028. Tesla plans to start Cybertruck production this summer with a release event in Q3 and volume production expected next year The large order indicates Tesla's confidence in the electric pickup truck's long-term impact on the EV and pickup truck markets. On Saturday, Warren Buffet hosted the annual Berkshire Hathaway annual shareholders meeting in what has been described as “Woodstock for Capitalists” in his hometown of Omaha, Nebraska. Regarding the banking crisis, Buffett criticized failed banks' leaders and flawed regulations, while supporting government intervention for SVB depositors to prevent catastrophe. He believes the dollar remains the reserve currency, dismissing cryptocurrencies as a "joke." Berkshire's $151 billion Apple stake is its best-performing investment. “It just happens to be a better business than any we own” 92 yr old Buffett on living a great life: “You should write your obituary and then try to figure out how to live up to it,” Buffett said. “It’s not that complicated.” He won’t be investing in auto makers anytime soon. Buffett and Vice Chair, Charlie Munger believe the auto industry is challenging and unattractive due to intense competition and the costly, uncertain transition to electric vehicles. “It’s just too tough…” He does like
Fri, May 05, 2023
The Big Premiere, Musk Praises Ford, Carvana Comeback?
Shoot us a Text. It’s been a wild week and Friday is saying, “Hold my beer” as Elon Musk praises Ford’s strategy, Carvana stocks stage a comeback, and it’s time to get ready for the livestream premiere of More Than Cars. Elon Musk threw some empathic praise Ford’s way regarding their strategy, calling it "smart" despite the automaker reporting a negative 40% margin on its EV business. “Always tough with margins for new vehicle lines, especially when there are major technology shifts. I think Ford’s overall strategy with EVs is smart. The electric F-150 (Lightning) has high demand.” Ford’s sales were down this quarter but they remain committed to shipping over 600k units this year. After a 98% drop in share value last year, Carvana shares soared by 33% after hours yesterday due to an upbeat second-quarter forecast that projected a surprise core profit. "I think the major headwinds that have faced the business over the year are largely subsiding," Chief Executive Officer Ernie Garcia said on a call with analysts on Thursday Piper Sandler analysts warned in a note on Friday that the stock may not be suitable for risk-averse investors due to persistent solvency issues and a tangible threat of macroeconomic decline. Despite these concerns, they raised their price target for the stock by $1, setting it at $21. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, May 04, 2023
Kia’s EV Lease Future, Toyota Gets White House Nod, Grads Avoiding Tech Companies
Shoot us a Text. Thursday is here and we’re ready to hit the ground with you as we talk about Kia’s EV leasing strategy as well as a White House meeting with Toyota, and a trend from recent college grads that should have the Auto Industry’s attention. As Kia of America awaits its 2024 completion of retooling its West Point, GA factory to produce its new EV9, the company is talking about its plans to increase its reliance on EV leasing , from 15 to up to 40%, to capitalize on the $7,500 federal incentive for electric vehicle customers. Current EV6 and Niro are shipped from S. Korea along with the EV9 to be released later this year Fed credit has a provision that allows the $7,500 to be used as a discount off an EV's price rather than as a tax credit avoiding the ‘made in America’ battery qualification until 2032 The EV9 will cost just under 80k, the programs limit Household income limit is still 150k single and 300k joint Benchmarked on a Telluride’s depreciation: 80k new, 19% depreciation, 14,800, monthly pmt 411.11 plus interest and tax. Minus 7500 discount, 14,800 - 7500 = 7300 $202 mo payment plus interest and tax White House senior adviser John Podesta recently met with Toyota officials and confirmed that the automaker is now fully committed to electrification, aiming for 1.5 million EV sales per year by 2026. Podesta told a Reuters roundtable, "I think they're going to stick with plug-in hybrids for a while, maybe longer than some of the other companies but they're fully now committed under their new leadership to electrification," Last month, Toyota announced plans to introduce 10 new battery-powered models, targeting sales of 1.5 million EVs annually by 2026 They currently have only three battery models on the market and sold fewer than 25,000 worldwide last year A new report from college and new-grad career site, Handshake reveals that Gen Z college graduates are prioritizing stability over big tech companies, as ZERO major tech firms are featured in the top 10 preferred employers. Instead, Gen Z is focusing on organizations like Raytheon, Nike, and Toyota, indicating a shift in job preferences amid tech layoffs. Christine Cruzvergara, Handshake’s chief education strategy officer told CNBC that the graduating class is “prioritizing stability, and they’re quite turned off by the volatility they’ve seen in the news around Big Tech,” she continues,“They’re gravitating toward co
Wed, May 03, 2023
LIVE from Digital Dealer, Ford "Boring" Earnings Calls, Forced Edge Usage
Shoot us a Text. Welcome to Wednesday as we are in Tampa basking in the afterglow of our More Than Cars Premiere. Today we discuss how Ford is working towards boring and predictable earnings calls, and how Microsoft is forcing more people to use its products. https://www.reuters.com/business/autos-transportation/ford-revenue-rises-20-demand-suvs-pickup-trucks-2023-05-02/ Jim Farley is hoping Ford's earnings become "boringly predictable." https://www.theverge.com/2023/5/3/23709297/microsoft-edge-force-outlook-teams-web-links-open Microsoft is forcing Outlook and Teams to open links in Edge, regardless of the default browser. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, May 02, 2023
Live From Digital Dealer in Tampa, Mercedes and F1, Walmart Trains Leaders
Shoot us a Text. We’re on the ground in Tampa for Digital Dealer and the Premiere of More Than Cars. On this Tuesday we’re talking about Mercedes using its F1 team to keep up with Tesla and Walmart training jts managers. Digital Dealer As Mercedes is pushing the pedal down to keep up with Tesla, they have integrated their passenger car development team with their F1 team to cut development times by more than 25%. Last year, Mercedes unveiled its EQXX concept car, a super-efficient EV capable of a range of more than 1,200 km (745 miles), which was jointly developed with the German premium carmaker's F1 team in England. Took only 18 months to develop Walmart launches its week long Manager Academy to better train frontline managers and build community among them. The training objectives include: Understanding Walmart’s values and championing its culture at work; Leading with empathy and focusing on the well-being of associates; Learning how to further engage with the retailer’s customers and communities; Embracing change and being an example to others to do the same. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, May 01, 2023
3 Big Groups Back Over 30 Day Supply, Smoke Reviews Q1, A Big Lot Of Guerilla Marketing
Shoot us a Text. Welcome to another great week in Retail Auto, folks. Today we’re getting started by talking about a hard fought milestone for at least three of the big publics. We’re also reviewing a conversation with COX Chief Economist, Jonathan Smoke, as well as giving props to some of the best guerilla marketing we’ve seen in a while. For the first time in over two years, at least three of the major public vehicle retailers reported a 30 plus day supply in new car inventory. Asbury hit 30 days, up from 10 a year earlier, 26 in Q4 Sonic hit 31 days, up from 15 a year earlier, and 24 in Q4 Lithia hit 52 days, up from 27 a year earlier and, 47 in Q4 There is still a lot of disparity between manufacturers Thomas King, president of J.D. Power data and analytics, said in a statement Thursday "As we look to May, the asymmetrical market positions of each manufacturer could become more apparent. Brands with higher inventory levels may participate in the tradition of Memorial Day promotions and discounts to generate sales, while other brands that are still struggling with production will have to decide whether or not to compete on price." Our friend Jonathan Smoke, Chief Economist at COX, broke down Q1 trends regarding the movement in new and used car sales as the markets begin to moderate and some new car buyers who were forced into the used market are beginning to move back. Smoke said “The retail vehicle market is showing clear changes in momentum in March,” as new vehicle sales were up 9% YoY and used declined 6% Smoke specifically noted that there are more, lower cost new car options on the market that weren’t there a year ago. Regarding the used market, Smoke says, “The traditional used-car market buyers are left, and they are the most challenged in terms of credit conditions and affordability.” He also noted that used supply is still down and wholesale prices will continue to be high In one of the best guerilla marketing tactics we’ve seen in a while, both Big Lots and The Container Store, will be accepting all of those 20% off coupons floating around from the now bankrupt Bed Bath and Beyond. Late last week Big Lots said they would apply any of those coupons to purchases over $50 through May 7th. “Our mission is to help people live big and save lots, which means we’re always thinking of ways to step up and deliver even more
Sat, April 29, 2023
One Dealership Decided To Bring Everyone Together...For Good
Shoot us a Text. On this special Saturday episode we welcome back one of our writers, Kristi Canada. She shares one of her favorite Dealer stories of the week featuring New York Dealership, Gault Toyota. You can read the full story here . Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, April 28, 2023
OEM Open Source Collab, Rewiring The Yellow School Bus, Beyond Beds and Baths
Shoot us a Text. It's FRIIIIIDAAAAYYYY and we’re swinging for the fence as we talk about GM joining an open source foundation. We also talk about a creative EV use for school buses, as well as new opportunities for soon-to-be vacated Bed Bath and Beyond Stores. GM is taking another step toward software-defined vehicle development by joining the Eclipse Foundation, a global association promoting open-source software. GM aims to facilitate industry-wide standardization for building and connecting applications that connect vehicles to cloud and mobile devices through contributing its proprietary uProtocol technology. Frank Ghenassia, GM's executive chief architect of software-defined vehicles, says a standard software foundation to simplify and expedite development and connectivity. Ghenassia states, "rather than reinvent or try to apply the traditional automotive model that's been successful for hardware-driven features and try to apply that to software development." Let’s remember Automakers have a history of joining forces to create innovative platforms and vehicles more efficiently. Toyota and Subaru developed the Toyota 86 and Subaru BRZ Ford and Volkswagen collaborated on electric vehicles and autonomous driving technologies. In 2013, BMW and Toyota announced a partnership to develop hydrogen fuel cell systems, sports car platforms, and lightweight technologies A new partnership in Prince Edward Island in Canada will leverage EV technology in school buses to also provide emergency power. Quebec based Lion Electric is a Canadian-based electric medium- and heavy-duty vehicle manufacturer that produces the nostalgic North American yellow school bus. Last year, the tail end of Hurricane Fiona hit Prince Edward Island with winds of up to 93 mph, knocking out power for almost everyone. The province setup "warming centers" for food, shelter, and phone charging using diesel generators. 2 of these busses would have been able to power the center for 3 days Model 3 (57kwh) F150 Lightning (130) these buses (210) 200 busses have been ordered and 82 will be in service next month One company's loss is often another’s opportunity. Bed Bath & Beyond's recent bankruptcy and store closures open the door for a retail land grab . With nearly 500 potential spaces nationwide up for grabs, demand for these off-mall locations is high. Deborah Weinswig, CEO of retail real estate
Thu, April 27, 2023
GM Goes Full Resolve On CarPlay, Volvo Drives Straight, Best And Worst Airlines
Shoot us a Text. Thursday is here! And it’s a good thing because we’re on the home stretch of the month of April as we talk about GM going all in without Apple…still. We also talk about Volvo’s plans to continue being, well, Volvo. We’ll also review WalletHub’s latest list of the best and worst airlines. In what is shaping up to be either a stroke of technical and user interface genius, or a colossal apology in the making, GM is doubling down on its commitment to ax Apple CarPlay in its new EVs as part of a larger automaker battle for infotainment control and revenue, following in the footsteps of Tesla and Rivian, who won’t include CarPlay in their vehicles. Consumers don’t seem excited or trusting and in some cases are already leaving the brand. In 2015 CEO Mary Barra said, "Partnering with Apple and Google to offer CarPlay and Android Auto compatibility across the widest range of models in the industry is a great example of how Chevrolet continues to democratize technology that's important to our customers." Leveraging Android Automotive, GM will pay to license Google Maps and Google Assistant for its new infotainment center, which will be free to drivers for eight years. Other automakers like Honda and Polestar are making it clear that CarPlay is a part of their future In an EV environment of price (and Carplay) dropping, Volvo is playing its own Swedish-made, China-owned game. While competitors engage in price wars, Volvo Cars remains confident in its strong demand and sees no reason to slash prices, as its operating earnings outperform estimates. Volvo Cars maintains its outlook and reports healthy demand, with unit sales up 10% in the first quarter. CEO Jim Rowan states that as long as demand remains high, there is no reason to reduce prices for the automaker. Rowan also mentions that lithium prices, a significant cost factor for EVs, have started to decline, with more sources becoming available worldwide. A recent study by WalletHub has ranked Southwest as the worst airline in the US, while Delta Airlines claims the top spot for the second year in a row. The ranking analyzed the 11 biggest US airlines based on 14 metrics across four categories, including safety, comfort, and cost. 10. Frontier Airlines, 9. American Airlines, 8. Envoy Airlines, 7. JetBlue Airways, 6. Hawaiian Airlines, 5. Alaska Airlines, 4. United Airlines, 3. Skywest Airlines, 2. Spirit Airlines, and 1. Delta Airlines. Southwest
Wed, April 26, 2023
Bolt Goes Bye, Global EVs To Reach 20%, How’s That Inflation Doing?
Shoot us a Text. Welcome to Wednesday as we bid a joint farewell to the Chevy Bolt. We also discuss a new report about global EV adoption, as well as check in on our old friend…inflation. After the better part of a decade, GM is saying goodbye to the Bolt as the last units roll off the Orion assembly line later this year. The move marks the end of the Bolt as the most affordable EV in the US market, making way for the upcoming Equinox EV, according to CEO Mary Barra. The Bolt experienced record sales in its final year, with GM expecting to produce over 70,000 Bolt EV and EUV models this year. GM plans to replace the Bolt with a new slightly larger Equinox and Blazer SS, based on GM's Ultium platform later this year GM is tripling the size of the staff at the factory following a planned $4B overhaul so that it can produce electric versions of the Chevy Silverado and GMC Sierra. They are calling it “Factory Zero” One writer for EV news outlet Electrek says his family owns a Bolt and 2 Teslas and he and his wife fight over who gets to drive the Bolt due to its comfort, handling, and ironically, it’s great Apple CarPlay integration A new release from The International Energy Agency (IEA) reports that electric cars are expected to account for one-fifth of the global market in 2023, with sales growing 35% to reach 14 million units. This marks a significant increase from just 4% in 2020. Currently, China leads the world in electric car adoption, with over half of all electric cars on the road and 60% of electric car sales in 2022. The transition from combustion engines to electric vehicles is projected to reduce global oil demand by at least five million barrels per day. In emerging and developing economies, two- or three-wheel electric vehicles are more common than cars, with over half of India's three-wheeler registrations in 2022 being electric. India is about to surpass China as the most populous country within months Consumers have continued to pay higher prices for everyday items, benefiting companies like McDonald's, PepsiCo, and Kimberly-Clark, even as some executives warn that shoppers may become more resistant to price increases. Despite price hikes, McDonald's saw a 12% increase in same-store sales, while PepsiCo reported strong demand and raised its revenue growth forecast. Some execs are cautious about consumers' tolerance for price increases as the labor
Tue, April 25, 2023
Battle of Billions, Summary of Charges, Barista or A Button Press?
Shoot us a Text. It's a great Tuesday in the car business as we talk about the growing battle to build the biggest multi-billion dollar battery plant. We also summarize the challenges and activity of the charging network in America, as well as discuss a large grocery chain’s decision to bump the baristas. It’s a battle of the billions as General Motors and Samsung SDI announced plans to invest over $3 billion in a US-based joint venture EV battery manufacturing plant, while Hyundai announces a $5 billion EV battery joint venture in Georgia with SK On. GM and Samsung SDI's planned plant will have an annual production capacity of 30 GWh, starting in 2026. The Hyundai-SK On Georgia plant will begin battery cell production in the second half of 2025, with a 35 GWh capacity. This news comes as Hyundai just reported doubled net profits in Q1 Since there is a looming, arguably arbitrary, governmental set goal to have 50% of vehicles be zero emissions by…2030, many experts suggest the need for over half a million public charging stations to be installed nationwide to service the need. A great AN summary article provides a summary of some of the various initiatives across industries that are working toward that end with different goals and opportunities Mass coordination across industries is going to be required One of the biggest challenges will be the gaps between major metros Data from OEM partners is critical to determine driving habits and charge locations GM partnering with their dealers can contribute a sizable chunk of charge Retailers like Starbucks, 7-Eleven, Walmart, Target, Sonic Drive-In and Taco Bell are getting a bump out of installing charge stations but the path to profitability for the charging companies is unclear Other charge solutions such as battery swaps or mobile charging services are spinning up Industry leading grocery chain, Wegmans, is testing out the replacement of live baristas at its in-store “Buzz” coffee bars with state of the art self service coffee machines. The company cites a significant decrease in coffee-run traffic since the uptick of work from home. “Coffee-brewing technology has come a long way, and our new self-serve coffee machines use our same high-quality coffee beans and offer a similar menu of lattes, cappuccinos
Mon, April 24, 2023
Cars Driving Inflation, Top 100 Used Car Dealers, Tesla Off The Hook
Shoot us a Text. A WSJ article highlights a recent study showing that car dealer markups significantly contributed to the 16% increase in the consumer-price index over the past few years. Study was written by Michael Havlin, who previously worked for the US Bureau of Labor and Statistics but wrote the paper on his own accord Compared the Producer Price Index (wholesale price) to the Consumer index New car inflation contributed a full point to the overall number A recent study published by the Federal Reserve Bank of Kansas City argues that markups across industries accounted for more than half of inflation in 2021, with firms raising prices in anticipation of costs increasing later. (McKelvey!) “It is “absurd” to argue that dealers contributed substantially, or even at all, to inflation”, an NADA spokesperson said. “By that logic, every consumer who sold or traded in a used vehicle for more than its Kelley Blue Book value profiteered off that sale and thus bears responsibility for contributing to consumer inflation.” Heather Bernikoff and David Raboy were told by their local dealership that the Ford F-150 Lightning they ordered for their cattle ranch would have a $10,000 markup due to its high demand and limited supply. They ended up getting one from a dealer 2.5 hrs away that didn’t have one They recently joined advocacy efforts to pass a bill in the California legislature that would prohibit dealerships from marking up EVs The AN list of the top used car dealers in the country has been released and Lithia has claimed the top spot with over 311k used vehicles sold. #2 is AutoNation with over 299k, followed by Penske with 261k Noted that Carmax is no longer on the list since they sold their only franchised dealership and the list is exclusive to franchised dealers. Carmax sold 810k used vehicles and wholesaled 590k Del Grande Dealer Group jumped the most spots (27) from 86 to 59 Garber Management Group had the highest used to new ratio at 2.8 Tesla scored a significant legal victory in a California state court, as a jury ruled that the company's Autopilot feature did NOT fail in a crash while the software was engaged. The plaintiff was seeking over $3 million in damages, alleging defects in Autopilot and airbag design, but the jury awarded zero damages. The jury decided that Tesla did not fail to disclose facts about Autopilot’s limitations as the company con
Sat, April 22, 2023
Saturdays Are For Short Stories. GREAT ONES!
Shoot us a Text. We're excited to start our new, quick-shot, Saturday edition of the Automotive Troublemaker Podcast. We'll be welcoming two of our staff writers, Chris Reeves and Kristi Canada, to tell some of the best Dealer stories they've covered in the previous week. There are thousands of inspiring stories happening inside stores on a regular basis and we're going to inspire you with some of them as you are on the floor and in the lanes loving on and serving your communities. If you didn't know, we have a daily email, with Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, April 21, 2023
Lincoln’s Refocus, NADA and Urban League Collab, Electric Motorcycles
Shoot us a Text. We’ve got that Friday feeling as we’re talking about Lincoln’s new President and trajectory. We also cover a great collab to get techs into service bays, as well as a brand new electric motorcycle. Lincoln's new president , Dianne Craig, is ready to revitalize the luxury brand by refocusing its EV strategy, updating products to attract customers, and reducing its dealer network. Craig emphasizes the need for exclusive Lincoln dealerships, acknowledging that the current 637 dealer network is too large and is making a push for less dual branded stores w Ford Craig declined to say how many stores the brand should have but suggested it could be around 356, the number of dealers who have signed up for Lincoln's electric vehicle certification program. Craig said "No declarations on how many or confirming what was stated in the past," she said. "It's not my focus. My focus isn't on the timing or how many; it's making sure we get the EVs right." According to NADA 39,000 new service techs graduate from U.S. technical colleges and training programs every year…. but industry needs 76,000 to replace those who quit or retire. That’s why a new collaboration between NADA and the Urban League is so timely as the new pilot initiative aims to recruit, train, and place minority technicians in apprenticeship roles at local dealerships Hand selected candidates will begin with a 4 week professional and life skills training program provided by the Urban League of Louisiana, then will shadow service personnel at participating dealerships while studying automotive technology at local community colleges The program lasts 18 months and includes ASE and OEM certifications. Upon completion, the trained mechanics will work at dealerships as technician apprentices. “This pilot program is the first step in what we hope will one day be a national program to recruit, train and place trained technicians in dealerships across the country,” says the NADA foundation’s chairwoman Annette Sykora, owner of Smith Auto Family in Levelland, TX We talk about EVs a lot, but now that Spring is here and all those motorcycles are starting to come out, we wanted to show some love and talk about the new electri
Thu, April 20, 2023
Kentucky and Cars, Volume Over Profit, One Upping in China, Emotional Ads Win
Shoot us a Text. Thursday is coming in hot as we’re talking about Dealer sentiment, Tesla’s volume over profit strategy, and China’s flood release of EV tech. We also talk about the most effective ad content of 2022. Takeaways from day with Kain and Co. Jamie Butters keynote regarding what he sees as potential roadblocks from Detroit Yesterday, Tesla CEO Elon Musk announced the company's strategy to prioritize higher volume production, even at the expense of short-term profits. The decision follows missed first-quarter expectations for total gross margin, but Musk still believes that Tesla's vehicles will generate significant profit through autonomy in the long run. Reiterated that it expected to deliver of around 1.8 million vehicles this year, 500k more than they did in 2022 Musk also announced a late Q3 ‘handover event’ for the much anticipated Cybertruck as production will begin soon, with first deliveries scheduled for September 2023. Updated specs and pricing will be revealed, as well as a new Quad-motor variant The Shanghai Auto Show has automakers one-upping one another as they showcase a wide array of futuristic vehicle features. From in-car karaoke systems to crystal ball gear selectors, the exhibition is highlighting the innovation and creativity of both domestic and international brands. Zeekr, a premium EV brand owned by Zhejiang Geely Holding Group, showcased the X model SUV, which boasts massage seats to enhance passenger comfort. Unity, a popular video game engine company, is partnering with Li Auto to transform dashboard displays into 3D game-like interfaces, offering a glimpse of the cockpit of the future. Patrick Koller, CEO of French auto parts supplier Faurecia, noted that Chinese automakers have done away with buttons in favor of voice and movement activation, stating, "The electronics in China is more of a consumer-driven electronics, this means you are looking for a 'Wow!' effect." Amidst the multitude of new brands like Polestar and Li, there are also lots of familiar brands who released or displayed new models or concepts like VW, Nissan, Mini, and Honda. Ford put a gas powered Ranger on display and announced they would be producing and selling the model in the Chinese market to join the F150 and Bronco Following a 10-year decline, humor is back in advertising, as Kantar's Creative Effectiveness Awards highlights campaigns from KFC, Cadbury, and Starbucks as the most effective in 2022. Emotion, nostalgia, and storytelling played key roles in engaging consumers, while the use of humor experienced a resurgence in advertising. The pandemic and war in Ukraine are cited as reasons consumers are enjoying a little more escapism and good feelings in their ads The most effective campaign in this section was discovered to be the
Wed, April 19, 2023
A Real Live Dealer In the Studio feat Phil Gill
Shoot us a Text. It feels like a great Wednesday to talk about selling cars! We talk with Phil Gill, GSM of Tom Gill Chevrolet about what it’s like being a dealer’s kid, his test for EV salespeople and how to train your team to sell more. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, April 18, 2023
IRS Drop Like a T-Swift Album, Employees Breaking Rules, Apple…Save?
Shoot us a Text. It feels like a great Tuesday to be in the car business to us! Today we talk about the recently released IRS rules on EV credits. We also discuss a new study that talks about the power of letting employees break the rules, as well as Apple breaking the bank…again. Automakers, Dealers, and in-market EV consumers were waiting for the IRS to release new EV tax credit rules like a teenager waits for the latest Taylor Swift drop. After the new sourcing rules went into effect, there were only six battery-electric models that still qualify for the full $7,500 credit: Cadillac Lyriq, Chevy Bolt EV and EUV, certain versions of the Tesla Model 3 and Model Y, Ford E-Transit and F-150 Lightning. Ford, Stellantis, and one Tesla model, the Model 3 Standard Range Rear Wheel Drive, will lose half credit but still be eligible for $3,750 Chevy bolt starts at t $26,500 “The great news here is that based on Q1 sales volumes, more than 90 percent of vehicles that were eligible for the credit before April 18th are still eligible, with the vast majority eligible for the full credit,” Albert Gore, executive director of the Zero Emissions Transportation Association. New research indicates that a retail culture that allows employees to bend rules for customers can overall enhance customer loyalty as well as making the employee be more engaged overall. In the Harvard Business Review, the study’s authors, the study’s authors, Irene Kim of the University of British Columbia; and Yujie Zhan at Wilfrid Laurier University stated: RE customers: “Customers clearly recognize when employees take risks to be helpful, and research shows that pro-customer rule breaking has desirable customer outcomes,” Re employees: “These employees were less emotionally exhausted, more satisfied with their job, and were more likely to share with their organizations their concerns, ideas, and suggestions to improve existing rules and practices for customer service.” It was also noted that any ‘violations’ were relatively minor and that high manager engagement with particularly entitled employees was necessary to success In another shot to traditional banking, Apple is diving into the savings game with its new Apple Card savings account that has an impressive 4.15% APY. Its managed right in the wallet app and integrates seamlessly with the Apple Card's Daily Cash rewards The program is backed by Goldman
Mon, April 17, 2023
MASSIVE Chinese Car Show, Too Heavy To Park, Starship Testflight
Shoot us a Text. Welcome to another week in the world’s best industry. Today we’re talking about the Chinese version of the NADA show, a new report which is raising the question on structural capacity for EV parking garages, as well as the potentially historic Starship launch today. If you thought the NADA Show was big, think again. The Shanghai Auto Show 2023 is set to showcase the intense competition in the electric vehicle (EV) market, with global and Chinese automakers unveiling more than a dozen new electric models. And the tradeshow floor is a small continent of 1.5 million square meters (16 million square feet) In Comparison the Las Vegas convention center is only 3.2 m sq ft China purchased 5.4 million pure-electric vehicles of their 23.6 million cars in 2022, about two-thirds of the global total of 8 million and EV sales are forecast to increase by another 30% this year The Chinese government is winding down subsidies and shifting the burden to automakers by requiring them to earn credits for EV sales, prompting manufacturers to develop competitive models without subsidies and form partnerships to share cost China's BYD Auto, who wants to overtake Tesla for the title of world’s biggest-selling electric automaker, will reveal its U9 supercar from its luxury Yangwang brand. 1 million yuan ($145,000) sticker price, accelerates from zero to 100 kph (60 mph) in two neck-straining seconds. An article from Automotive News is highlighting a report from the British Parking Association that raises the caution flag on whether or not older parking garages can hold up the weight of new, heavier EVs Chris Whapples, a structural engineer, told The Telegraph, "I don't want to be too alarmist, but there definitely is the potential for some of the early car parks in poor condition to collapse. Operators need to be aware of electric vehicle weights, and get their car parks assessed from a strength point of view, and decide if they need to limit weight." A Tesla model S weighs 5000 lbs…more than most F150s. A new EV hummer can get close to 10,000 lbs SpaceX will be attempting to launch the first test flight of their fully integrated Starship and Super Heavy rocket from their HQ, Starbase, in southern Texas near Boca Chica Beach today Over the
Fri, April 14, 2023
Cruise Is Cruising, One Chevy Dealer v. The Sun, Retail Stores Continue To Close
Shoot us a Text. We’ve got that Friday feeling as we roll into the showroom this morning. Today we talk about GMs Cruise driving toward profitability. We also cover one Florida dealership who is crushing the solar game, as well as a new retail report that shows small stores are still shuttering. GM-backed autonomous vehicle company Cruise is set to enter its rapid growth phase, targeting a revenue goal of $1 billion by 2025. Cruise surpassed 1 million driverless miles as of February as they have been operating more than 300 autonomous vehicles in its three markets: San Francisco, Phoenix, and Austin. The focus has now shifted to scaling operations to scale into new cities while preparing for volume production of their autonomous vehicle, the Origin at GM's Factory Zero in Detroit. According to calculations by Sam Abuelsamid, principal research analyst at Guidehouse Insights.Cruise will need 5,500 to 6,000 vehicles operating on a daily basis to achieve its $1 billion revenue target by 2025, That assumes Cruise is operating in 10 cities with 550 to 600 vehicles in each location, he said, and fares of about $2.50 per mile…all which is realistic The Dimmitt Chevrolet team in Clearwater, Florida, is pushing the border of innovation as it launched an onsite rooftop solar array that will generate more than 1 GWh of energy annually, which is enough to power 750 homes. Over 2,000 panels were installed, leveraging tax incentives in a partnership with Energy Services of America The giant solar panel array will offset about 156 tons of CO2 emissions, cover 100% of the store's power needs, and pay for itself in under five years through energy savings. Telling it like it is - Something about cooling your showroom using solar energy is peak science. Using the sun to battle the sun. 🌞 vs. 🌞 According to a new study by UBS, 50,000 US retail stores are predicted to close due to rising operating costs and increasing e-commerce sales over the next 5 years with specialty retailers, such as clothing and consumer electronics stores being hit the hardest. Larger chains like Walmart, Costco, and Target are expected to do better because they are better positioned to absorb the impact of rising rent, labor, and other costs They can also benefit from significant investments in fulfilling digital orders in a way that small
Thu, April 13, 2023
Prices Below MSRP, Genesis Home Energy, Sales People v Sales AI
Shoot us a Text. It’s a glorious Thursday and we’re talking about new pricing info showing overall, lower than MSRP pricing. We also cover Genesis’s new home energy system, as well as the battle between salespeople and AI. For the first time in nearly two years, new vehicle prices have dropped below their suggested retail value, according to KBB data. As consumers have more choice they’re getting better deals. Luxury vehicles continue to command prices above the manufacturer's suggested retail price. AVG transaction price of a new vehicle in the U.S. declined 1.1% in March to $48,008 from February's $48,558. However, March prices rose 3.8% compared to a year earlier Yesterday, Genesis introduced its own Tesla-inspired home energy solution complete with electric vehicle charging, solar panels, and energy storage. This all-in-one offers personalized support from dedicated energy advisors and skilled installers to ensure a seamless home electrification experience. From the press release: "Genesis Home is an end-to-end mobility solution that both lowers barriers to EV adoption, while simultaneously providing a seamless solution for our discerning clients to generate and store dependable, clean electric power and to harness their home energy to charge their electric vehicle," said Claudia Marquez, chief operating officer of Genesis Motor North America From the comments: “Copy the part where they offer home storage and solar. Don't copy the part where they take forever to do your installation and have terrible customer service.” As the likely epic battle of humans vs. AI in the workplace gets going, one company that outsources human sales reps for retail products, Feel, the conversion rate when someone talks to a human rises from 1-3% to 10-25% When customers ask a question, on rep featured in the article , Brookelyn Castro, takes one on one video calls from her home and makes sure the difference is known right away “I have to reiterate: ‘Hey, I am a human. My name’s Brookelyn, and I’m real,’ ” says sales representative Brookelyn Castro,. Even Feel is training bots to replace humans with Feel’s co-founder and chief executive saying“Then it’ll be stupid to continue having humans and paying for them,” says Oren Harnevo,
Wed, April 12, 2023
New EPA Regs Announced, Cap 1 Drops Floorplans, Electric Burritos
Shoot us a Text. Welcome to Wednesday as we cover the newly announced EPA regulations. We also talk about Capital One’s decision to dropping floor plan financing, as well as Chipotle going all electric. The Biden Administration has officially released the strictest tailpipe emissions regulations in history. The EPA’s new standards for light-duty vehicles cover the 2027-2032 model years The EPA states a taxpayer savings of over one trillion The regulations focus on grams of carbon dioxided per mile In a Wednesday blog post, Alliance for Automotive Innovation CEO John Bozzella called the EPA's proposal "aggressive by any measure." "By that I mean it sets automotive electrification goals in the next few years that are … very high," he wrote, citing that the proposal exceeds both Biden's 50 percent ZEV sales target and another goal outlined in a governmentwide transportation decarbonization plan. "How will EPA justify exceeding the carefully considered and data-driven goal announced by the administration in the executive order and the more recent national blueprint?" Bozzella asked. After over 25 years, Capital One is winding down floorplan lending but will continue its auto finance operations citing a renewed focus on their core business.. Floorplan lending comprised about 1% of the bank's commercial business and was not considered core to its long-term priorities. Low interest rates in the 2010s and early pandemic period allowed dealers to profit from floorplan lending as automakers subsidized loans for new vehicle purchases. In 2015, the average dealership made $109,497 in floorplanning due to favorable borrowing costs. As interest rates rose in 2018, floorplanning became a cost, with the average dealership expense reaching $82,979 in 2019. With rising interest rates and higher car prices expected, dealerships may see floorplanning revenue dip and the practice potentially becoming a cost again. The auto industry isn’t the only one focusing on a move to electric. Chipotle is taking significant steps towards sustainability by piloting three all-electric restaurants powered by renewable energy and include the elimination of gas usage. The changes include Electric grills: Chipotle is replacing gas-fired grills with electric ones to reduce energy
Tue, April 11, 2023
Over Sticker Damage, CarPlay Pizza, Unintended Starbucks Consequence
Shoot us a Text. Today we’re talking about one study that tracks the fallout from Dealers charging over sticker price. We also talk about a new app that lets consumers order pizza from their cars, as well as a less than welcome reception for a new Starbucks beverage. A recent GfK survey reveals that 34% of customers paid more than the sticker price for a new vehicle in December 2022, a trend that may hurt repeat business for car dealers and automakers. About 27% of those who paid above the sticker price stated they would never buy that brand again suggesting long term consequences for brands and relationships 31% would advise others to avoid the dealership, and 29% plan to never use that retailer for service Julie Kenar, GfK senior vice president of consulting, told Automotive News on March 15 paying sticker doesn't engender the same backlash as paying above it. "There's a much bigger lift" in negative feelings with the latter, she said. Of all the demographics in the study, Millennials and those with household incomes over 150K were most likely to have paid over sticker In February, the average vehicle sold for 102.8 percent of sticker Domino's Pizza continues to revolutionize the pizza ordering experience with the debut of its first-of-its-kind Apple CarPlay app . The app is highlighted in the new 30 second spot by agency, Work In Progress Domino's "AnyWare" delivery apps enable customers to order from any location using their preferred device. These options include Alexa, Google Home, Samsung Smart TVs, Apple and Android smartwatches, Slack, Twitter, Facebook Messenger, voice ordering via Domino's app, texting a pizza emoji, and a "zero-click" app that orders pizza 10 seconds after opening. To incentivize early adopters Domino’s is offering CarPlay users large one-topping pizzas for a discounted $7.99, carryout only. A few weeks back we talked about Starbucks launching its new olive oil-infused coffee range, Oleato, urging customers toward a unique experience and health benefits. However, some customers are feeling a different urge after trying the beverage. “Half the team tried it yesterday and a few ended up… needing to use the restroom, if ya know what I mean,” one barista posted on the Starbucks Reddit page The combination of caffeine, a stimulant, and olive oil, a relaxant, might be responsible for thi
Mon, April 10, 2023
Stricter EPA Rules, Blue Oval City Rising, Jobs and Perks Dwindling
Shoot us a Text. It’s a great Monday to make some trouble as we talk about this weeks anticipated EPA rules on tailpipe emissions, some details on Fords innovative new plant, as well as the job and job perk situation that is changing rapidly. "We're going back to how Henry Ford set up the assembly line, we're going to do more of this ourselves." says Ford CEO Jim Farley about the company’s new “Blue Oval City” manufacturing plant in west Tennessee also calling it a “marvel of simplicity” The plant is the first the company has built in 50 years and is scheduled to open in 2025 and to produce 500k vehicles in a space that is 30% smaller than other Ford plants that have the same capacity Ford and partner SK Innovation will operate a battery plant at BlueOval City, building battery cells, arrays, and assembling battery packs. The site will also be carbon neutral, use geothermal, and won’t require any fresh water Sometime this week The Biden administration is expected to propose extensive new limits on vehicle tailpipe emissions , pushing U.S. automakers towards majority electric-vehicle sales. Will likely cover 2027-2032 model years and will potentially exceed President Biden's initial target of 50% of all new vehicle sales being electric-powered by 2030. The current percentage of EV sales is sitting around 6%. The Alliance for Automotive Innovation, a lobbying group that represents GM, Ford, Toyota Motor Corp. and other major car companies, said in a statement that they expect the new rules to be released but didn’t specify details The group noted such a transition will require a seismic shift in the way Americans drive and cited a Mckinsey study which highlighted a $35B investment in charging infrastructure needed to accommodate such a shift As the tech industry faces unprecedented job losses , Silicon Valley veterans are forced to reset their careers, opting for stability over status. Positions at giants like Meta and Amazon are giving way to roles at smaller firms, tech jobs at non-tech companies, and freelance consulting. “The majority of folks that have been laid off from big tech companies, they’ve been disillusioned,” said Chris Rice, a partner with Riviera Partners, an executive-search firm that places leadership talent in software-engineering, product-management and design positions. This comes as last months jobs report <a href='https://www.cnn.com/2023/04/07/economy/march-jobs-
Fri, April 07, 2023
Walmart and 2030, Tesla Private Videos, Older Workers to the Rescue
Shoot us a Text. It’s Friday and we’re ready to wrap our week of shows talking about Walmarts charging plans, Tesla employees sharing private owner’s videos, as well as older workers coming to the rescue of the staffing shortage. The company that has over 5000 stores with a store within 10 miles of 90% of America, Walmart, is now committing to build a charging network across the country as part of a deal with Electrify America by the year…2030 "We have the ability to address range and charging anxiety in a way that no one else can in this country," Vishal Kapadia, Walmart's recently appointed senior vice president of Energy Transformation, said in an interview. Kapaia also said Walmart will start development of it’s own chargers The chain has 240M visits a week to its stores and will be a wealth of data on how shoppers use and pay for charging Tesla employees have been privately sharing highly invasive videos and images recorded by customers' car cameras via an internal messaging system, according to interviews by Reuters with nine former employees. Some recordings were mundane, but some were of embarrassing or potentially dangerous situations. Included were road rage, personally identifiable information, and even nudity One video showed submersible vehicle from James Bond film, owned by Elon Musk As retailers face continual staffing problems, many are turning to older workers who are deemed more reliable and willing to work than younger generations, according to a Wall Street Journal report. A WSJ-NORC survey showed that individuals aged 65 and older are not only unafraid of hard work, but 75% of them crave it. Kip Conforti, who owns two package-shipping stations in Pennsylvania, was highlighted in the Journal article for his decision to recruit older workers. He said it takes longer to train older workers but the extra time is worth it. “Once they get it, God, it’s refreshing. I say, ‘This is what we’re doing today,’ and it gets done. Their shift starts at nine and they’re here at 8:50. It’s their work ethic.” Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/compa
Thu, April 06, 2023
So We Did A Thing… Live Tonight with ASOTU!
Shoot us a Text. We are coming to you live from Arlington, TX after Live Tonight with ASOTU. Today we are talking about why we put on the show and playing some of our favorite moments. Watch the Full Show! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, April 05, 2023
Ford Has a Big Q1, Live Audio Craze is Fading, Sharing Dealership Stories
Shoot us a Text. We are coming to you live from Arlington, TX on the morning of Live Tonight with ASOTU. Today we are talking about Ford’s big Q1 wins, Spotify sunsetting their live audio project, and a recap of the amazing stories we heard inside dealerships yesterday. In the face of lingering supply chain disruption, Ford announced on Tuesday that its first-quarter US auto sales rose 10.1%, driven by strong demand for electric vehicles, SUVs and trucks. Despite concerns about rising interest rates and a potential recession, analysts predict that the upbeat figures should help to soothe fears. Sales of crossover SUVs and trucks, which made up over 95% of Ford's sales in Q1, contributed to the overall increase. Demand has been so strong, Ford is looking at ways to increase output of gasoline-powered and hybrid F-150 trucks at a Michigan factory Our friend Charlie Chesbrough, Senior Economist at Cox "The U.S. new-vehicle market is showing signs of strength and is also being reshaped by higher prices and fewer subprime buyers," said So apparently Spotify had a Clubhouse competitor , but is shuttering it at the end of this month. Spotify is shutting down its ‘Spotify Live’ app as the remaining users recently got a notification saying the app will no longer be available at the end of the month After acquiring Betty Labs for $60M in late 2021, the platform only received 670k downloads as opposed to Clubhouses 35M downloads in 2021 alone Since Mid-2021, the number of monthly active users on Clubhouse has dropped by 82 percent, according to data provided by Sensor Tower. Of all the live audio platforms, Twitter spaces is doing the best even in light of laying off most of the spaces staff as they overhaul the platforms offerings and operations Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, April 04, 2023
App Stores for OEMs, Over-The-Air Fixed Ops and Creepy AI Insights with Steve Greenfield
Shoot us a Text. We’re in dealerships this Tuesday as Steve Greenfield joins the show to talk about the unanswered questions of software subscriptions in cars, how over-the-air updates will changed fixed ops departments and how AI insights into consumers are creepy. Steve Greenfield joins the show to discuss this month’s Automotive Ventures Intel Report Software Subscriptions Over The Air Updates What should those on the frontlines be paying attention to? Sharing AI insights with customers. .creepy? Tomas Chamorro-Premuzic wrote on this topic in the Harvard Business Review with the basic premise that “there are reliable and systematic links between our preferences and our personality traits” and “the opportunity for AI, then, would be to make us aware of the alignment (and gaps) between how we want to be seen, and what are brand and product choices convey about us:” “AI could be used as a real-time coach, giving us regular feedback on how our daily patterns of behaviors express underlying needs, moods, and motivations. Just as wearables can translate physiological signals into actionable feedback on our fitness, energy, sleepiness, or stress levels, AI could detect changing patterns to our habits to alert us about increases in negative or positive affect, curiosity, or aggression.” Some responses "Sure, you can derive some basic things by looking at habits, but personality is deeply personal and complex and can't be assessed by superficialities." Neil Saunders Managing Director, GlobalData "With all due respect to Professor Chamorro-Premuzic – at the present time, his thesis is absurd. AI can’t generate “insights” in a therapeutic sense." Ryan MathewsFounder, CEO, Black Monk Consulting "No. AI-based “insights” have a high likelihood today to be wrong. And we do not yet understand when and how those errors occur." Doug Garnett, President, Protonik Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, April 03, 2023
Massive Movement in Top 150, Tesla Ups and Downs, GM Killing CarPlay
Shoot us a Text. Welcome to a wonderful week in Retail Auto as we talk about the movers and shakers on the Automotive News Top 150. We also talk about Tesla’s ups and downs, as well as a move by GM to stop offering CarPlay in its EVs. This year’s Automotive News Top 150 list has seen some massive movement from overall market share of the top groups, several groups who are screaming up the list, some who have dropped off, and after a quarter century reign, AutoNation yields the top spot to Lithia. The six publicly traded groups on the list saw their collective new-vehicle sales increase , and they also accounted for a growing share of the market; Lithia Motors Inc., AutoNation Inc., Penske Automotive Group Inc., Group 1 Automotive Inc., Asbury Automotive Group Inc., Sonic Automotive Inc. Lithia 271,596 new vehicles last year, up 4.2 percent; AutoNation retailed 229,971 down 12 percent 10 Dealers who climbed the most : Shottenkirk Automotive Group Inc. (99, +56); Brandon Steven Motors (123, +34); Ciocca Dealerships (83, +32); Empire Automotive Group (98, +31); Napleton Auto Group (126, +28); Fox Motors (76, +22); Cavender Auto Family (57, +18); Del Grande Dealer Group (78, +18); Safford Automotive Group (104, +17); Chapman Auto Group (134, +17) Top 150 owned 4,260 stores (23.3%) of all U.S. dealerships, up from 22.7 in 2021 Tesla has reported a 36% Q1 YoY increase, delivering a record 422,875 vehicles globally, marking, due to the recent strategic price cuts. Model 3 sedans and Model Y crossovers comprising 97% of total deliveries Topped fourth-quarter deliveries by about 4% but didn’t meet expectations of analysts surveyed by FactSet Wall Street expects first-quarter profit to slide to around $2.6 billion, from $3.3 billion for the first three months of 2022, despite an expected increase in sales, according to FactSet Tesla aims to deliver about 1.8 million vehicles this year, 37% more than it did in 2022 GM thought they could get one by us by releasing this information on a Friday close…but they were w
Fri, March 31, 2023
Lightning Costs More These Days, Texas Tax On EVs, Losing Faith In Ed
Shoot us a Text. FRRRIIIIDDDAAAY CLLLLOOOOSSSEEE! As everyone gets their running shoes on to close the month, we’re talking about another price increase for the F150 Lightning, Texas’ newly proposed tax on EVs, and Americans losing faith in higher education. Show Notes with links: Ford increased prices yet again for its F-150 Lightning electric pickup due to high costs, material prices, and supply chain constraints with the base price of $61,869, including shipping being 50% higher than the base price when the truck launched just a year ago The Lariat Standard now starts at $75,974, while the Platinum range begins at $98,074 The company cites strong demand as the model is sold-out for retail customers as commercial order banks prepare to open in mid-April. Ford just got the F150 Lightning factory back online earlier this month after recalling 18 electric trucks due to a battery-cell manufacturing defect The company is aiming for an 8% pretax margin by late 2026 despite an anticipated $3 billion loss in its electric-vehicle business unit this year. In a bid to recoup lost gas tax revenues, Texas is considering a $200 annual fee for EV owners to contribute to the state's road repair budget. Critics argue the fee is unfair, as fuel-efficient vehicles pay less in gasoline excise tax. Texas funds a significant portion of its roadworks through a gasoline excise tax, prompting legislators to find alternative revenue sources as fossil fuel usage declines. Critics argue that the proposed $200 fee for EV owners is excessive, with some suggesting a fairer amount of $100, similar to California's fee. Some researchers and states are considering introducing an annual fee based on mileage to address privacy concerns and provide a fairer charge for EV drivers. Americans' faith in higher education is dropping quickly as a new WSJ-NORC poll reveals that a majority, 56%, now believe earning a four-year college degree is a bad bet, while 42% still have faith in its value. As recent as 2013, the numbers were basically flipped as 53% of Americans advocated for college and only 40% showed skepticism Skepticism is strongest among people aged 18-34 and those with college degrees, indicating a potential shift in higher education's future. Ted Mitchell, president of the American Council on Education, said, “These findings are indeed sobering for all of us in higher educat
Thu, March 30, 2023
400th episode! Manchin Is MAD, Insane NYC Toyota/Lexus Store, College Grads Actually Writing Cover Letters
Shoot us a Text. It’s not ‘just another Thursday’ as we celebrate our 400th episode of the Automotive Troublemaker. We’re talking about Senator Joe Manchin’s fighting words, an insane new Toyota/Lexus store in NYC, as well as the slowdown in hiring college grads. It looks like Senator Joe Manchin is ready for a showdown, and Dealers and Auto Consumers are in the mix. Manchin has threatened to take legal action over how the US Treasury Department interprets the rules around EV battery sourcing in the Inflation Reduction Act's consumer tax credit for new electric vehicles. He believes that the Treasury may interpret key terms in a way that goes against the law's intent of reducing dependence on foreign adversaries, such as China, for battery materials and manufacturing. The Treasury is expected to release guidance on the tax credit's critical mineral and battery component requirements, having already missed the statutory year-end deadline in 2022. In Manchin's words: "I think they're going to try to screw me on this. I'm willing to go to court. I'm willing to stop it all...Manufacturing is meant to bring manufacturing back to the United States. It's not basically allowing everyone to put all the parts and build everything you can for that battery somewhere else and then send it here for assembly." We all know that Dealers will always find a way to make it work. Well John Iacono and his partners at BRAM Auto Group have just raised the bar as they’ve opened a joint Lexus/Toyota store in one of the most expensive and complicated places to put a Dealership with a view of the Hudson River in Hell’s Kitchen NYC. “The used cars are on the roof, the new cars are in New Jersey, and the more than 200 vehicles in line for service on any given day are stacked three high and three deep on racks like a kid's giant Matchbox set.” Customer cafe, 52 service bays featuring natural light, a FedEx staging facility on the ground level and an elegant leased event space on the top floor with 35 floors of luxury apartments on the way New vehicles are stored 6 miles away and drivers are paid a $42 flat rate to get them to the store which could take as little as 15 minutes depending on that NYC traffic Soon to be college grads are facing a much tougher job market than they were at the beginning of this year as many of the companies that were in bidding wars for them in September have since laid off thousands. Com
Wed, March 29, 2023
EVs Taking Ground, Hacked Teslas, Apple Pay LATER
Shoot us a Text. Welcome to Wednesday as we talk about JD Powers new EV report that talks about expectations for broad adoption sooner than you think. We also cover the very efficient hacking of a Tesla Model 3, as well as Apple letting payers not pay right now. ASOTU investor and friend David Long, Executive GM of the San Francisco area Hansel Auto Group calls EV demand ‘insatiable’ as JD Power released their latest E-Vision Intelligence Report In the report, JD Power predicts 3 in 4 consumers will be able to choose a viable EV option by 2026 due to falling prices and robust selection of vehicles. The $26k Chevy bold is cited as one example of price parity with gasoline models indicating EV’s aren’t just for upscale buyers anymore About 8.5 percent of new-vehicle sales and leases were EVs in the first two months of this year, a record high and almost double the share from a year ago, J.D. Power said. David Long continues that with EVs, "there's so many questions about charging and things that they really want to hear another human being tell them and show them," Long said. "We've had to become really, really good at being able to provide customers with information," he said. "The more we can communicate to our consumers, the more comfortable they will be [and] the easier it will be for them to make that decision to transition from ICE to EV." Tesla's cybersecurity team has a little work ahead of them as French firm Synacktiv easily hacked a Model 3 at a security conference, gaining access to the system in under 2 minutes and winning themselves $350,000 and a brand new Tesla. The hack was a full compromise as the hackers were capable of opening the Tesla's trunk and doors while it was in motion And of course, the team replaced the Tesla logo on the infotainment system with their own. The hacks were confirmed by a Tesla security response team in Vancouver to monitor the process and the company is expected to fix the bugs via the vehicle's self-updating system, according to a Security Week report. Apple is getting into the buy now pay later game letting select Apple Pay users swallow the full purchase price of online items one bite at a time. It’s called ‘Apple Pay Later’ Users will have the abi
Tue, March 28, 2023
The 411 on Q1, Hyundai’s Branded Charging, Starbucks CEO Working the Counter
Shoot us a Text. There is a lot to talk about this Tuesday folks. We cover yesterday's COX Insights report as well as an update from Toyota’s North America CEO. We also talk about Hyundai’s potential new EV charging network, as well as the new Starbucks CEO working shifts at the counter. Yesterday was all about the numbers as Cox Automotive held their Q1 2023 Industry Insights and Sales Forecast Call where affordability, supply, and other factors affected the industry. In a separate meeting, Toyota NA President, Jack Hollis discussed the automakers plans and outlook for another solid year of sales Jack Hollis, Toyota NA CEO, predicts very strong demand for their new vehicles throughout the year as well as a new car avg transaction price crossing $50k Citing remaining strong used car demand and pricing he said: He said, "The only thing holding us back [as an industry] is the totality of the supply chain and the fragility of it, because we're not back to normal anywhere globally." Hyundai is considering launching its own branded electric vehicle (EV) charging network in the US, as part of plans to sell 1.5 million EVs globally by 2030. Olabisi Boyle, vice president-product planning and mobility strategy for Hyundai Motor North America, said the network would be set up in partnership with other companies The Korean automaker has opened a fast-charging station in Seoul, which includes a cafe and lifestyle store, and has already announced branded stations for the Korean market Tesla is the only manufacturer which owns and operates a robust network of 40k global chargers and are widely known to be more reliable and convenient than other, fragmented options New Starbucks CEO Laxman Narasimhan who just started the new role a few weeks ago announced plans to work a half shift in a Starbucks cafe once a month in order to stay in touch with the front line of the business. He wrote a letter to the company's employees and named them “the artists and the theater in the front of [Starbucks] stores and the factory in the back.” as he said “health” of the company needs “to be stronger” In the 6 months leading up to taking the role he earned his barista certificate and visited many stores, farms, and manufacturing facilities The 55 year old Executive, has a degree in mechanical engineering, was Chief
Mon, March 27, 2023
Dealerships Up, Franchises down, Rivians Bricked, Human Models Replaced
Shoot us a Text. Welcome to another rousing week in Retail Auto. Today we review the annual Automotive News Dealer Census. We also talk about one Rivian owner who isn’t so excited to be an early adopter, as well as a new AI implementation at Levi Strauss that has mixed enthusiasm. The latest Automotive News annual dealer census shows an increase in the number of franchised dealerships in the US for the first time in three years. The count rose to 18,271, marking a 0.4% increase from the previous year. The total number of franchises dropped by 54 Ford lost 31 franchises and Lincoln dropped 54: Ford Motor Co said many multi-franchise Lincoln stores were dropped to focus on one brand. They had no comment on the drop in Ford stores Genesis dropped 36 franchises Overall Domestic badged stores decreased by 66, while imports gained 12 Notable that Polestar add 26 Avg franchise sold 425 new-vehicles, an 8.8% decline One Upstate NY resident waited 3 years for his Rivian R1S and then it promptly bricked in deep snow . Chase Merrill was driving on an unplowed road in the Adirondack Mountains when the R1S got stuck in a snowdrift. Attempting to rock the car out of the snow bank, he triggered a safety feature that got the car stuck between the park and drive gears and it completely powered down He called Rivian service and ultimately had to pay $2100 to have it towed to the nearest service station hundreds of miles away in MA Later he found out a simple reset would have solved the issue, but this wasn’t presented as an option on the service call Rivian executives have stated that the R1S did what it was programmed to do in a dangerous slide-away situation, but are brainstorming responses to improve the product At first they only offered to pay for the repair work and not the tow bill, but, after Business Insider reached out, they offered to pay for the tow as well As ChatGPT and AI continue to dominate the culture conversation, one visual form of AI is making deeper roads into retail as clothing maker Levi Strauss is partnering with AI Amsterdam-based startup, LaLaLand.ai, that claims to create “hyper-realistic models of every body type, age, size and skin tone” to model clothing on its website. The company pioneered AI tech last year to show
Fri, March 24, 2023
Ford ‘teach in” Explains $3b EV Loss, Trading Jag Franchises for Land Rover Inventory, 2025 Electric Air Taxis
Shoot us a Text. There is lots of action this Friday as we talk about Ford’s ‘teach in’ where it thoroughly explained its $3B EV Loss. We also talk about JLR offering Dealers more Land Rover Inventory for closing their Jaguar stores, as well as United Airlines first Air Taxis coming in 2025. Ford held a “teach in” yesterday to explain their new reporting structure to an audience of mostly reporters, which was perfect, because they started by explaining that they are set to lose $3B just this year on EVs. Last year’s loss was $2.1B They also reported $7B in earnings from their Ford Blue Division and $6B from Ford Pro Last year the company changed their financial reporting structure to focus on the various business units vs. performance in different regions. This was the first time that Ford publicly released results in this manner CFO John Lawler reiterated, "Ford Model e is an EV startup within Ford, and as everyone knows, EV startups lose money while they invest in capabilities, develop knowledge, build volume and gain share." Speaking of recent hires from Tesla, Doug Field and Alan Clarke “It’s about the talent we have,” Lawler said. “We all know there is one profitable EV manufacturer. The folks that designed those vehicles are at Ford.” What will luxury Dealers give up to get their hands on more of that high-margin luxury inventory? If you’re a Jaguar Dealer, you may be tempted to give up your Jaguar Franchise . According to reports JLR has begun reducing stores by as many as 40 as reported in AN citing a Dealer source who wanted to remain anonymous Manhattan Dealer Jonathan Soble closed his Jag Franchise in February but retains the ability to service Jags. He is using the extra showroom space for more Land Rovers In Europe, Jaguar is shifting upmarket with three all-electric ultraluxury SUVs on its exclusive Panthera platform, starting at around $122,000. The brand's dealership footprint could look more like that of ultraluxury brands it aspires to compete against such as Aston Martin and Bentley, which have fewer than 50 US dealerships. United Airlines is working to launch the first commercial electric air taxi route in Chicago by 2025. The air carrier is partnering with Archer Aviation as a part of its intentions to go 100% green by 2050. The first proposed rou
Thu, March 23, 2023
Carvana Still Has A Surprise, TikTok In The Stores, Coke Let’s Consumers Create
Shoot us a Text. We’re throwing down Thursday as we discuss why Carvana’s earnings surprised the market yesterday. We’re also talking about how more and more Dealers are using TikTok in their stores, as well as a new campaign by Coke that puts the power of the brand in consumers' hands by leveraging AI. Yesterday, Carvana announced a much smaller core loss than most expected saying they are looking at a Q1 loss of $50-100 million. A year earlier the loss was $348m. The announcement sent shares north to almost 30% before they came back down to close the day still up 12% The company credited the better than expected performance to aggressive cost cutting measures implemented over the past year In a regulatory filing, Carvana estimated Q1 sales will be between 76,000 and 79,000 units. Carvana sold 105,185 vehicles in the year-earlier period and it sold 86,977 in the Q4 2022. Carvana attributed the drop to higher interest rates, lower inventory size, lower advertising expenses and focus on its profitability initiatives. More and more Dealers and their employees are taking to Tiktok to pull the curtain back on the buying process and letting some secrets out in the process. Many of the most popular videos discuss hidden fees and explain how some dealers might use scarcity tactics to sell cars "TikTok has actually produced more sales, more calls, more immediate business than any of the others," said Jesse Cannon-Wallace, a salesperson at Mercedes Benz Atlanta Northeast in Duluth, Georgia, who has 121,100 TikTok followers. Tito Suave, a salesperson at Gettel Nissan in Sarasota, Florida with 548,300 TikTok followers, posts videos sharing word tracks some dealers use to try to pressure you into buying a car. In addition to the sharing, they also use the platform for walkarounds and educations Coca-Cola has launched an AI platform, "Create Real Magic," which combines OpenAI's GPT-4 and DALL-E technologies that offers consumers in select markets access to Coke-branded elements for use in AI-powered art. The artists have the chance to submit work for digital billboards that could be featured in New York City and London. According to Coke "Create Real Magic" aims to democratize both Coke's brand iconography and "highest-profile advertising assets," with
Wed, March 22, 2023
Americans Weigh In On EV Preferences, Lithium Continues Sliding, Physical Button Future
Shoot us a Text. Welcome to Wednesday friends. Today we’re talking about a new Reuters/IPSOS poll about consumers' EV preferences. We also cover the continued slide of Lithium prices, as well as the return to push buttons in vehicles. According to a recent Reuters/Ipsos poll , over one-third of Americans would consider buying an electric vehicle for their next car, 34% of all respondents would consider purchasing an EV, with Democrats being more likely to consider it at 50%, compared to Republicans at 26%, and independents at 27% 56% of respondents would be willing to pay no more than $49,999 for an EV, and 35% would want an EV that offers 500 or more miles of electric driving range per full charge In the next several weeks, the EPA plans to propose new, more stringent vehicle emissions rules through at least the 2030 model year Good news for EV makers as battery-grade lithium carbonate prices experienced the biggest drop of the year in China yesterday, down 3.85% from Friday. Falling prices could help ease cost pressures, while lithium miners' shares have been hit. As opposed to the tripling of prices from Nov ‘21 to Nov ‘22, the market is set to drop a further 25% by year-end, according to a recent Reuters report. Factors include rare discounts from Chinese battery giant CATL and new capacity coming online from companies such as Albemarle and Livent. Electric vehicles currently make up 80% of lithium-ion battery demand If you found yourself longing for that analog world after you realized that those new touchscreen controls in your fancy new car were kind of terrible, you aren’t alone. It also turns out, they are quite the safety hazard. That’s why Hyundai is committed to bringing them back. According to Hyundai's head of design, Sang Yup Lee, physical buttons are a necessity for common functions like climate control, radio controls, windows, and more Tactile feedback is essential for no-look control Sang Yup Lee, Head of Design at Hyundai suggested that the company may consider using touch controls more heavily when autonomous driving becomes more common. Until then, physical controls remain a priority for the automaker Reddit users weighed in
Tue, March 21, 2023
Dodge Doing Wheelies, Banning the Bans, New Yorkers Unite Over Shade - Special Guest: Scott Simons, CMA
Shoot us a Text. Welcome to Tuesday Troublemakers. Today we’re talking about an absurdly fantastic new muscle car, an effort to ban the bans in the US House, as well as NYC residents banding together to push back on a new logo. In an effort to ‘go out with their boots on’, Dodge is celebrating the retirement of its current V8 engine Challenger and Charger by bringing back the Challenger SRT Demon with an edition CEO Tim Kuniskis calls “the new pinnacle of factory crazy.” The Demon will produce 1,025 total horsepower, 945 foot-pounds of torque and reach 60 mph from a rolling start in 1.66 seconds It is touted as being ‘barely street legal’ and is capable of popping wheelies Dodge was expected to reveal the car earlier this year, but engineers were “blowing up” engines attempting to get as much performance as possible out of the car, Kuniskis said. The problems led engineers to develop a new supercharged engine for the vehicle. The production run will be about 3000 units and will start around 100k going up to 120k w/ add ons Thus far, at least a dozen US states have pledged to ban ICE vehicles by around 2035, amidst a rousing debate over who should get to decide what consumers choose to drive. Now a new bill sponsored by aftermarket behemoth, SEMA has entered the US House in an effort to ‘ban the bans’. HR1435 was introduced by R-PA Rep John Joyce and is being branded as the “Preserving Choice in Vehicle Purchases Act” and promoted as a bill designed to protect Americans’ right to choose the technology that powers their cars. “SEMA believes that vehicle owners should not be directed toward a specific technology, but rather be allowed to choose the type of vehicle technology that best serves them,” said SEMA CEO Mike Spagnola. “While electric vehicle technology expands clean transportation options, SEMA will continue to advocate on behalf of the industry that has helped make the internal-combustion engine (ICE) a reliable, affordable and clean option for millions of consumers.” This week, New Yorkers (NYC residents specifically) were greeted with a rebrand of the iconic ‘I love NY’ designed by Milton Glaser in 1977. The collaborative work from several NYC agencies and the city made not so subtle changes to the logo which now reads, “We Love NYC”. New Yorkers are not so subtly hating on it. The move is designed to spark pride in those who
Mon, March 20, 2023
Mazda’s New Leader, Totaling EVs For Little Damage, Slurpees and Chargers Together At Last
Shoot us a Text. Happy Monday Troublemakers. Today we’re talking about Mazda’s newly appointed leader as well as the tricky insurance game when it comes to repairing EVs. We also talk about 7 Eleven’s plan to keep EV drivers moving across the country. Late last week, Mazda announced the appointment of a new President and CEO , 40-year company veteran Masahiro Moro to replace current President and CEO Akira Marumoto, who has held the seat since 2018 Moro is currently a director and senior managing executive officer and had previously been the head of Mazda’s North America operations Moro cites recent growth in the US and hopes to continue by upgrading its 360 Dealerships and targeting 1,000 vehicles a year per store initially. "If that can be done, next would be to work to 1,200 units," he said. Mazda also nominated Jeff Guyton, 56, senior managing executive officer and its current North America head, as chief financial officer and assistant to the president pending the June approval of the shareholders and board. Insurers in Europe are being forced to write off almost new EVs with only slight damage to unrepairable battery packs according to a Reuters report. While some automakers have made battery packs easier to repair, Tesla's Model Y, has a new structural battery pack that has been described by experts as having "zero repairability." A replacement battery for a Tesla Model 3 can cost up to $20,000, for a vehicle that retails for about $43k Peter Gruber, owner of Phoenix, Arizona, Gruber Motor Co has mostly focused on replacing batteries in older Tesla models says "An insurance company is not going to take that risk because they're facing a lawsuit later on if something happens with that vehicle and they did not total it," he said citing lack of data accessibility on Teslas As a result, insurance premiums on EVs are higher than combustion vehicles. In Europe, as high as almost 30% more The company who brought us everyday concepts that were once unheard of such as; coffee in a to-go cup, self-serve fountain soda, and being open 24 hours is now planning on shaking up the EV Charging space . That company is 7 Eleven. Last week they announced their 7Charge network of EV chargers that will be rolling out across the US and Canada In a release, the company is looking to build “one of the largest and most compatible” networks and are also releasing a companion app to help the
Fri, March 17, 2023
Mississippi Bans Direct Selling, VW EV Goes Down Market, Microsoft Office Does The Work For You, -Special Guest Todd Caputo
Shoot us a Text. It’s Friday and we’re on the final lap of the week as we talk about a new Mississippi ban on aut manufacturers selling direct to consumers. We also talk about VW’s new low-cost EV, we also talk about the new Microsoft Office add on that does the work for you. Earlier this week, Mississippi passed a bill that bans EV manufacturers from directly selling their vehicles, instead mandating that they work with franchised dealerships. The law includes a limited exception for Tesla's existing outlet in the state Supporters of the new legislation say it will protect small car dealerships across Mississippi EV startups including Rivian and Lucid have criticized the move, claiming it will hinder consumer choice and harm the state's economy Volkswagen, has unveiled a “plug-in for the people” with its ID. 2all concept unveiled Priced at $26k and boasting a range of 279 miles, this Golf-lookalike hatchback is set to be the plug-in car for the masses. VW even took a not-so-subtle jab at Tesla, unveiling the car at an investor event just weeks after Elon Musk failed to reveal his own affordable EV. Looks alot like a VW Golf hatchback with it’s strong C Pillar design Charges from 10 to 80% in 20 minutes Has a “self explanatory” interior with different screen theme options like ‘retro’ featuring analog gauges and a rolling tape deck when playing music With plans to invest 180 billion euros ($193 billion) over five years in battery production and raw materials, VW hopes to overtake Tesla and others by increasing its market share. Expected release in 2025 with an even lower cost model, the sub $20k ID.1, planned shortly after Microsoft Office has been a place where millions of people get work done. Now the company is heavily deploying AI Language Model Chat GPT throughout the software suite to actually do the work for you with a new integration called “365 Copilot” Combines OpenAI’s GPT-4 with Microsoft 365 apps like Word, Excel, PowerPoint, Outlook and Teams to provide natural language controls by which a user can create presentations, generate text, suggest tones for writing and manage inboxes, as well as providing real-time summaries and action items, amongst other functions.
Thu, March 16, 2023
Lithia and the Queen, EV Home Charging Woes, KIA’s Swivel Seat EV
Shoot us a Text. It’s Thursday and we have a full charge as we talk about Lithia’s entry into Great Britain. We also cover JD Power’s new report indicating waning satisfaction with home charging, as well as KIA’s new EV SUV with swivel seats. Yep. Lithia Motors has become the third public auto retail with holdings in the United Kingdom, joining Penske and Group 1, with its recently announced purchase of Jardine Motors Group which includes 40 new-vehicle franchise points in the UK, including luxury brands including Aston Martin, Porsche and BMW, according to Lithia CEO BryanDeBoer said. According to Britain's Sky News, the cost of the deal was between $361-482M and it will add around $2B in annual revenue to Lithia which already jumped 24 percent to $28.23 billion During an interview DeBoer called the deal "more affordable than what we typically find ... in the United States” and continued "... more importantly, it gives us a foundation to grow more in the United Kingdom, which is helping us drive towards our $50 billion target for 2025 Customer satisfaction with their EV home charging solutions have taken a shock as the JD Power 2023 U.S. Electric Vehicle Experience (EVX) Home Charging Study indicates a noticeable decline due to a combination of slow charging speeds, rising electricity rates, and lack of consumer education on charging programs Satisfaction is measured across eight factors: fairness of retail price; cord length; size of charger; ease of winding/storing cable; cost of charging; charging speed; ease of use; and reliability. When factoring cost, the index dropped more than 30 points New EV owners were one of the primary reasons of the drop in scores due to charging speed of installed level 2 chargers Only 51% of those surveyed were aware of programs that helped with the cost of install and charging costs After weeks of teased photos, we finally got a first look at the first EV in the 3 row segment with the flagship Kia EV9 that features an aggressive design, three rows of seating plus cargo space, and yes, the middle row seats swivel Built on Hyundai Motor Group’s 800V E-GMP platform, the release says the vehicle features “technology for life” design philosophy throughout that “promotes intuitive interactions between humans and machines.” More performance details will be released next month however the design is very close to the concept presented last year but many tech an
Wed, March 15, 2023
GM Backpedals Subscription Plan, Used Cars EDU, Chat GPT Looking At Pics
Shoot us a Text. Welcome to Wednesday as we talk about GM reversing course on a subscription and their CMO taking Barra’s buyout. We also talk about the major wholesale/retail used car gap, as well as the new version of Chat GPT that can tell you what a meme means. A reversal in a subscription sales decision after less than a year and a departing CMO have GM is in the news today. Last summer GM began adding a $1500 line item to every new Buick and GMC vehicle for a mandatory On Star subscription Now, they are reversing course for the 2024 year and only including it on premium Denali and Avenir models and making it part of the purchase price The service includes crash detection, remote features, and unlimited data streaming All other models will receive OnStar Remote Access Features for free After GM’s announcement of voluntary retirement via a buyout incentive, one of the highest profile exits will be from General Motors Global Chief Marketing Officer Deborah Wahl who started with the company as Cadillac CMO in 2018 and was promoted to Global CMO in 2019 Wahl was an auto industry outsider coming from McDonald’s North America and was one of Automotive News’ 100 Leading Women in the North American Auto Industry list in 2000, 2005 and 2020 Our friend Dean Evans, EVP at cars.com and former CMO at Hyundai and Subaru encouraged replacement from outside auto: “while we've been sitting here in an archaic industry that needs to move forward, why would we put a retread into that?” EDUCATIONAL MOMENT: Wholesale Used car prices are crazy. We’ve personally seen evidence of this in several vAuto accounts and there are experts across the industry talking about it . Wholesale valuations going up and retail values (book value) not keeping up meaning Dealers are buying used cars for thousands more than they can sell them for meaning a front end loss Just as you were getting used to the idea (or maybe not) of the Chat GPT AI language model doing your kids homework and writing your next job cover letter, Open AI has announced the new version, GPT-4 which is more advanced and nuanced…and it can look at pictures. The company claims the model is “more creative and collaborative than ever before” and “can solve difficult
Tue, March 14, 2023
Banks, Bowie and Consumer Behavior with special guest Damon Lester
Shoot us a Text. Welcome to Tuesday as we’re on the ground with Damon Lester of Nissan of Bowie. We also talk about how banks failing affect the auto industry, controlling what you can control, and insights into what the consumer is thinking about. Everyone’s talking about the collapse of Silicon Valley Bank , and Damon uses some of his CPA background to talk about what it means, especially for the auto industry. Damon shares the view from his area of the industry. Fixed Ops is the “weight room” of his store. Customers have questions about EVs, specifically when it comes to EV tax credits. On a practical note, Damon says that “How you start your day determines how you end your day.” Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, March 13, 2023
Motor Madness, Reputation at the Top, GM’s In-Car Chat GPT
Shoot us a Text. We knew it was moving fast, but according to sources close to the matter, GM is working on integrating Chat GPT into its vehicles in the form of a virtual assistant The VA will use Microsoft’s Azure cloud service, which has exclusive rights to the OpenAI tech that powers ChatGPT Scott Miller, GM’s vice president of software defined vehicle and operating system, confirmed some of the information as he expounded on the idea of a highly responsive virtual assistant that could explain how to change a flat, the meaning of a warning light, or perhaps even book a service appointment Miller wouldn’t discuss details about which AI models will be used or the name of the assistant Special Guest: Jamie Oldershaw talks about DealerRater’s Dealer of the Year award and the race for reputation in 2023 Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, March 10, 2023
GM Buyouts, A Town Named Snailbrook, Army Ads and Bellbottoms
Shoot us a Text. It’s a beautiful Friday, folks and the ASOTUverse is ready for it! Today we’re talking about GM’s buyback moves as they try to cut costs the empathetic way. We also cover a new town just outside of Tesla’s Gigafactory in Austin Tx, as well as a reboot of an old Army recruiting slogan. Yesterday, General Motors announced it is working to avoid involuntary layoffs…by paying people to leave . The company will be offering buyouts to all salaried employees that have been with the company 5 years or more. They have until March 24th to accept the offer and will leave the company by June 30th. Non-executives will receive one month of pay for every year w/ the company up to 12 months, plus benefits Execs will get base salary, incentives, health, and placement services The move is expected to cost the company $1.5B and is part of the GMs plan to cut $2B annually from its cost structure In a memo sent to employees, CEO Mary Barra highlighted the bright side of things as she wrote the the voluntary separation program, "...presents an opportunity to explore a new industry, make a career change, further a personal business venture or decide you can retire earlier." A reported plan is spinning as Elon Musk may be building a town on a 3500 acre plot just outside of Austin to offer affordable housing and services named “Snailbrook” after the mascot for The Boring Company. There is even a sign up that features a snail design and reads “Snailbrook, EST 2021” The main purpose of the town is to provide affordable housing to Tesla and SpaceX employees. The 2 and 3 bedroom houses will cost about $800/month and will have access to the town’s pool, outdoor athletic fields, and fitness center. There may also be a school built on the property The site will also be home to some of the companies warehouses Just like bell bottoms come back around every couple of decades, the Army is reviving its “be all you can be” slogan and revealing new visual designs in a new brand campaign featuring pointed, cinematic storytelling and Creed III star Jonathan Majors The
Thu, March 09, 2023
Women’s Day Video Recap, Nissan’s New Power, Getting Healthy w the Geeks
Shoot us a Text. Engines are fired (or charged) up this Thursday as we give a recap of our favorite Women’s Day videos. We also talk about Nissans new power plant plans as well as Best Buy’s plans to deploy the Geek Squad to take better care of your parents. Women’s Day Video Recap ASOTU Video Ford Video : Men’s Only Edition Explorer Nissan gave a preview of its new EV powertrain technology at their global HQ yesterday, where the name of the game is reducing complexity. The primary target is to reach parity between the cost of its electric and gasoline powered vehicles One of the cost cutting strategies is to use solid state batteries with cheaper materials such as nickel or cobalt "For new electric vehicles, we would like to reduce diversity," said Senior Vice President Toshihiro Hirai, head of Nissan's powertrain and EV engineering division. Overall weight reductions will also increase performance, such as driving in snow Nissan was one of the first players in the EV space with the Leaf and is expected to release a new version of the vehicle in 2026 The company has a stated goal of releasing 27 electrified models, including 19 all-electric vehicles, by fiscal year 2030 The retail industry is continuing its push into the multi-trillion dollar health care industry as electronics retailer Best Buy announced a partnership with Atrium Health to provide and install devices enabling patients to get hospital care while staying home Atrium recently completed a merger with Advocate Health, the fifth largest healthcare system in the U.S. with 67 hospitals and more than 1,000 healthcare offices across six states. Atrium will buy devices from BB and Geek Squad will install them “We knew Atrium Health was the right partner to help tackle the unique challenges within the care at home experience,” said Deborah Di Sanzo, president of Best Buy Health “Our partnership with Best Buy Health will help change the lives of our patients and consumers, giving them access to the tools and experiences they need to receive care in the comfort of their own home,” said Dr. Rasu Shrestha, chief innovation and commercialization officer at Advocate Health <a href='https://h
Wed, March 08, 2023
Used Car Pricing (almost) Record, Ram Rev Membership Closure, Remember Web3
Shoot us a Text. Welcome to Wednesday as we talk about some notable movement in the wholesale used car market. We also talk about the new EV Ram as well as the quiet transition of Web3 The used car market almost broke a record that has been in place since 2009. Remember ‘cash for clunkers’? The Cox Automotive's Manheim Wholesale Used Vehicle Value Index rose 4.3% in February from January which is the largest February increase since a 4.4% jump in 2009 2022 only saw month over month increases in May and December and the overall prediction was that 2023 would be a year of consistent decline Our friend, COX Chief Economist Jonathan Smoke told Automotive News that didn’t seem to be the case: "We've instead seen increasing wholesale prices, and I believe it's principally a reflection of how tight supply is in the used-retail market," Smoke told Automotive News. “Cox Automotive estimated that the retail used-vehicle supply in the U.S. was at 41 days at the end of February, down from 48 days at the end of January and 54 days at the end of February 2022. Wholesale used-vehicle supply ended February at 24 days, down from 26 days at the end of January and 29 days at the end of February 2022.” According to Black Book, retail listing prices are still down, but will likely follow the upward trend of wholesale prices Remember that amazing EV Ram 1500 Revolution prototype with its aggressive stance and progressive interior? Remember those controversial Super Bowl commercials about premature electrification? Well, Stellantis released images of their production model of the 2024 Ram 1500 REV and it looks much more like the current Ram than the prototype…but at least it has a frunk The company opened pre-orders, which required a $100 deposit for a “Rev + Insider Membership,” but that program was shut down about a week later citing “membership max capacity” No additional information was given regarding the actual number of memberships sold or if the pre-order would reopen There is still little information on the exact specs of the truck, but we do know the target range is 500 miles We also don’t know the price of the truck, although it is widely assumed that it will be similar to the F150 lightning starting price of $56k It’s been a while since we’ve mentioned 3 specific letters on this show; NFT. We aren’t the only ones who have seen the once culturally pervasive term lose rele
Tue, March 07, 2023
Battery Chemistry For Sale, The Wyclef Jean EV, 90 Year Old Company Crushing Competitors
Shoot us a Text. Welcome to Tuesday ASOTUverse! Today we’re talking about Ford’s plans to produce different types of battery chemistry that saves money. We’re also talking about a hip new EV as well as a legacy company who is crushing their competition. Starting in the next few months, Ford will begin selling EVs with two different types of battery chemistry for its Mach E; The current and more expensive Lithiumnickel cobalt manganese chemistry, and the less expensive and less dense lithium iron phosphate The lithium iron phosphate batteries can be 30-40% cheaper due to the broad availability of iron and phosphate They also charge faster due to their decreased density and Ford says they are more apt to vehicles who can charge every night like a garaged commuter or a local delivery vehicle Customers won’t have to worry about the chemistry selection and will simply choose ‘standard’ or ‘long range’ at purchase In late 2021, Tesla began offering lithium iron phosphate batteries on standard-range models. Stellantis plans to offer them on EVs in Europe, while General Motors could add lithium iron phosphate as it works to reduce EV costs, as well. Just when you thought everyone and their mother is releasing an EV, we have another new entrant into the space that is powered by grams of lithium as well as Grammy’s. Haitian hip hop artist Wyclef Jean, formerly of the Fugees just launched the ‘lightest electric supercar’ that can go 0 to 60 in 2.3 in Florida on Sunday, named the “Attucks Apex APO” The supercar is touted as being “designed in the UK and built in the USA” and is the lightest vehicle in its class coming in at just above 2600 lbs.. A Tesla Model S can weigh as much as 4800 lbs The launch was in collaboration with Attucks Futures and Technology, a business founded by Wyclef Jean to promote an outlet for the community to grow and develop. The official release is set for next year and the pricetag will start at $350k Sometimes, less is more. In the case of the 90 year old company Lego, 17% more than 2022. That’s the YoY sales increase that includes a 4% jump in profitability at a time most similar companies are facing declines and layoffs. Just 10 years ago Lego surpassed Mattel and Hasbro and now doubled their sales The company credits investments in e-commerce and digital interaction as well as partnerships with other successful brands such as Star Wars Demand remains strong as the company
Mon, March 06, 2023
Some VW Internet Drama, Dealers Prioritizing Parts, Trader Joe’s Putting ‘love’ At The Center
Shoot us a Text. It’s another wonderful week in Retail Auto as we cover new EV brand Scout and their touch-of-dramatic announcement of a new plant in South Carolina. We also cover some notable parts movement from Kia, as well as take some culture cues from the popular grocery store chain Trader Joes It is confirmed that VW Group will be building a $2B EV Manufacturing plant to produce vehicles for its new Scout brand near Columbia, South Carolina creating 4000 jobs and producing as many as 200k vehicles per year. The final call to confirm the selection was captured in a video of Scott Keogh on one side, and officials from the state of South Carolina in which Keogh congratulated the group Groundbreaking is set for mid 2023 and production for 2026 Scott Keough’s linkedin post announcement : In an effort to help parts departments move through backorders and continued shortages to keep customers on the road, Kia had introduced D2D Express, a dealership-to-dealership parts program that automates and incentives dealers to obtain backordered parts directly from other dealers. Seven months later, the program is showing big success. “The program allows a dealership to look at Kia's national parts ordering system to find where a component may exist. Kia handles the shipping costs and sends the provider dealership a bonus for its assistance worth 15 percent of the price of the part.” Since launch, the emergency backorder part delivery has improved four fold GM, Honda, and Stellanits have similar programs with similar success stories A Retail Wire feature on the grocery chain, Trader Joe’s, gives a peek behind the curtain from “The Inside Trader Joe’s” Podcast, talking about why it has earned the extreme loyalty of some and has become an example of great company culture. The secret sauce according
Fri, March 03, 2023
Greenfield Talks, Subaru Swapps, Ford Patent’s Potential Repos
Shoot us a Text. Fridays are for futurists as our friend Steve Greenfield joins us to talk about his latest Intel Report. We also introduce you to the new Subaru CEO as well as Ford’s new patent they said they don’t plan on using anyway. Who’s having fun!?! We are. Welcome back regular guest Steve Greenfield to talk about his latest Intel Report and what he is most excited about heading into March Subaru has appointed 60 year old Atsushi Osaki as their new CEO replacing Current CEO Tomomi Nakamura who has been at the helm since 2018. Osaki recently served as global production chief but has a tenured history in quality assurance; outgoing CEO Nakamura will become Chairman The new CEO said “We at Subaru want to survive the age of electrification by being nimble, we will put various systems in place while focusing on flexibility and expansion.” He also added that he sees sales growth in the US Also announced is President & CEO of Subaru of America, Tom Doll, will be stepping down effective April 1st and will assume the role of Corporate Advisor, still based at the Camden, NJ HQ "The Subaru brand and Subaru of America hold a special place in my heart. Since the day I arrived here 41 years ago, we have worked tirelessly to make Subaru more than a car company. The growth of this company has been nothing if not spectacular, but I am most proud of the good we have done with our Love Promise programs and the lives we have impacted. It is the employees of Subaru of America, the great friendships we have developed and our amazing customers and retailers who are the secret of our success," said Doll. On April 1, 34 year Subaru veteran, Tadashi "Tady" Yoshida will be promoted to the role of Chairman and Chief Executive Officer of Subaru of America, Inc. from his current position of Executive Vice President who has served in the various roles of Overseas Sales and Marketing, Global Marketing and the Customer Service Division Ford isn’t getting into the repo business and says it has no plans to use the technology that can disable a/c, create an “incessant and unpleasant” beeping, or even drive the car to another location in a repo situation in a patent they recently filed “We submit patents on new inventions as a normal course of business, but they aren’t necessarily an indication of new business or product plans,” Ford said in a statement</
Thu, March 02, 2023
Vision vs. Detail, February Rise and Fall, Culture Reports from Meta
Shoot us a Text. It's Thursday folks and we are running through the first week of March as we talk about the early results of Tesla’s Investor Day. We also summarize Auto Industry sales numbers from February, as well as Meta’s new cultural reports straight from Facebook and Instagram conversations. Yesterday’s three and a half hour Tesla Investor day was heavy on big picture thinking and light on the specifics as the company revealed some of its plans and challenges on the road to its target volume of producing 20 million vehicles per year worldwide Chief Financial Officer Zach Kirkhorn said Tesla could need to spend $150 billion more to reach its long-term goals of that 20M number with a big focus on integration Toyota is the current largest who sells just over 10M Tesla sold 1.3 M last year Plans to get there include 10 more factories, of which one was just announced in Mexico, as well as making the materials needed to produce its battery cells It opened a lithium refinery in Corpus Christi and a is building a battery materials facility in the Austin area No details on the Cybertruck or the much anticipated ‘low cost’ Tesla The company has had 14 consecutive profitable quarters Shares were down 5% in off hours trading following the event Sales reports are coming out this week. Some went up and some went down. Hyundai, Kia, and Subaru went up for their 7th straight month while Toyota and Honda fell back Not surprisingly, Increased demand and rising inventory played a big roll in the winners while tight supply continued to stunt the forward motion of the others Toyota fell back 2.4 percent overall, however it’s Lexus division actually increased 6.1% breaking a 12 month streak of declines Similar story at Honda falling 1.4% overall, but Acura rose by 12% Ford and Volvo will be reporting numbers later today and the rest of the industry is on a quarterly reporting schedule Meanwhile, as new car supply regulates, used car prices are declining moving some buyers back to the value " We have diverging markets today," said Charlie Chesbrough, senior economist at Cox Automotive. "New inventory is slowly stabilizing while used supply is falling. With many affordability-seeking vehicle buyers leaving the new market for the used, dealers may find they have too little used inventory, and price declines may reverse. And [automakers] may find they have too much new-vehicle inventory and be forced to be more agg
Wed, March 01, 2023
Bringing back the stick shift, Tesla’s “Investor” Day, Toyota’s EV March
Shoot us a Text. Welcome to the month where spring begins! Today we’re covering Toyota’s march toward EVs, Tesla’s investor day, and a resurgence of the manual transmission. Incoming Toyota CEO, Koji Sato is preparing to take the baton from long time CEO and industry icon Akido Toyoda on April 1st and he is making his intentions clear that Toyota will be taking a BEV first approach moving forward while maintaining its holistic and measured approach. "To deliver attractive BEVs to more customers, we must streamline the structure of the car, and — with a BEV-first mindset — we must drastically change the way we do business, from manufacturing to sales and service. Now that the time is right, we will accelerate BEV development with a new approach.” Sato is an experienced engineer who leads the Lexus International premium division as well as Toyota's Gazoo Racing motorsports arm. The company recently executed a full tear down of a Model Y and seemed to be impressed with the elegance and efficiency of its design with one executive saying "Taking the skin off the Model Y, it was truly a work of art. It's unbelievable." Toyota plans a strong continuation of its hybrid, plug-in hybrid and hydrogen-powered cars in addition to its development of EVs. Toyota owned Lexus, for example, already has a goal of going fully electric worldwide by 2035 and selling 1 million EVs globally in 2030 Today at 4pm EST the much anticipated Tesla Investor Day will begin at the company's Gigafactory in Austin, TX. On Feb 13th, CEO Elon Musk tweeted "Looking forward to Tesla Investor Day on March 1," "By this, we mean the broadest definition of investor, as in the people & life of Earth. It will be a message of good hope & positivity for the future." Musk said he will present Tesla's "Master Plan 3" for "a fully sustainable energy future." Expected announcements include progress toward a low cost Tesla often referred to as the Model 2, news on the company’s plans to increase sales, and also on a variety of topics from its solar business, battery materials, a revamp of the popular Model Y (code named Juniper) and potentially a revamped Model 3 (code named Highland) Anyone can watch the livestream by going to livestream.tesla.com With all this talk about an EV future, the kids are doing what they do best…pushing back. Just like widespread digital music adoption spurred on a re
Tue, February 28, 2023
Loyalty Awards, Fisker Producing, SNAP AI, Pokemon Sleep
Shoot us a Text. The last day of February is full of surprises as we review the 2022 Automotive Loyalty awards, talk about Fiskers plans for the year, talk with AI on SNAP, and let Nintendo gamify our sleep. GM wins the top spot in S&P Global Mobility’s 2022 Automotive Loyalty Awards while Tesla passes Ford for the first time ever As inventory levels continue to rise, GM was able to grab the top spot of overall loyalty to manufacturer as Tesla took the crown for ‘Overall loyalty to Make” from Ford who has held it for the last decade Tesla also claimed the top spot in: Ethnic Market Loyalty to Make, Most Improved Make Loyalty, Highest Conquest Percentage, Alternative Powertrain Loyalty to Make Subaru made our friend, Tom Doll, and all of their Retailers proud as they took home the “Overall loyalty to Dealer” award. Maybe they can rename it now. The stock price of new entrant EV maker Fisker jumped 30% yesterday as they announced their projection to produce 42,400 vehicles in 2023 with their manufacturing partner Magna International’s Austrian Division An analyst from ‘Raymond James’ named Pavel Molchanov said the stock bump was "a classic example of a relief rally," adding, "I think there were some fears that the production startup of the sport utility vehicle Ocean was getting delayed." CEO Henrik Fisker said they are ready to begin producing 20 cars per day with a ‘strong’ ramp in Q2 Its Ocean SUV is very competitively priced at $37,499. Tesla’s Model Y $54,990 after recent price cuts. Rivian Automotive Inc's R1S SUV costs around $78,000. Thus far, Fisker has produced a total of 56 vehicles Snapchat introduces its AI integration that will allow users to integrate regular life conversation habits with AI says CEO Evan Spiegel “The big idea is that in addition to talking to our friends and family every day, we’re going to talk to AI every day,” he says. “And this is something we’re well positioned to do as a messaging service.” Only available to 3.99/mo paid subscribers and will be pinned to the apps chat tab above conversations Has been trained by SNAP employees to avoid explicit content and politics Snap is one of the first clients of OpenAI’s new enterprise tier called Foundry, which lets companies run its latest GPT-3.5 model with dedicated compute designed for large workloads</li
Mon, February 27, 2023
Slashing EV Prices, New Techs From Non-Techs, Speed-baseball
Shoot us a Text. It’s time to wrap up February and roll into March as we talk about some major movements in EV pricing. We also talk about a newly launched tech training collab from NADA and the Urban League as well as baseball at 1.5x speed. In a time of widespread conversations about EV practicality and governmental spending, one of the conversations beginning to dominate the center of the argument is ‘affordability’ and it’s no surprise. With inflation and interest rates still rising, consumers are searching for the right fit at the right budget EV or not Reuters reports that Vietnamese manufacturer, VinFast is giving a deep discount to lease pricing to its first batch of US customers in California with deliveries starting this week Initially it’s VF8 crossover was listed having a lease price of $599 for 24 months, but now that has been reduced to $399 The company said the customers who are already taking delivery will pay only $274/mo according to messages to those potential buyers reviewed by Reuters "This is our special offer to VinFast customers for the VF 8 City Edition models in order to stay competitive with other brands," VinFast said in a statement Range for the VF8 is between 191 and 207 depending on the trim level Tesla’s Investor day scheduled for Wednesday March 1st is creating much speculation if there will be a game changing low-cost EV announced as CEO Elon Musk is anticipated to announce the “Third Master Plan” for the company In 2020 Musk said that a $25k EV "has always been our dream from the beginning of the company” however last year the vehicle, often referred to as the Model 2 had been put on hold due to lack of mastery of the new battery tech that would power the vehicle In multiple interviews, Musk has said the rate of scale of the company and EV industry as a whole will be constrained by the amount of lithium that can be successfully secured by battery makers Also announced today is the fact that the company’s Berlin factory has surpassed its production target of 4000 vehicles per week, 3 weeks ahead of schedule NADA and the Urban League are rolling out a technician training and apprenticeship initiative in Louisiana as a precursor to a national program. 20 candidates will begin the 4 week professional and lif
Fri, February 24, 2023
Plant Openings and Closings, The ‘TikTok’ Car, Airlines and Car Dealers
Shoot us a Text. We’ve got that Friday feeling as we cover what’s going on in some current and future plants across the US. We also talk about the new model from Mercedes that let’s users engage…TikTok. We’ll also cover some airline results that sound all too familiar. There is increased attention on manufacturing plants these days as Dealers are searching for the ‘new normal’ regarding getting the inventory they need, getting too much inventory, and being able to offer their customers tax incentive dollars toward a new EV Audi CEO Markus Duesmann said the company is considering building a factory in North America in order to take advantage of the generous Inflation Reduction Act incentives. Audi has committed to building only EV’s by the year 2026 and does not currently produce any in the US meaning it’s customers are not eligible for the $7500 tax credit Parent company Volkswagen's plant in Chattanooga, Tennessee, began producing the ID.4 last year and is shooting for 90,000 EVs in 2023 Duesmann said it is possible that Audi and VW have some sort of joint effort Ford announced it will be extending the downtime of its Louisville plant making the refreshed Escape and Corsair to March 6th as they battle a software issue in the center cluster. Next week will be the 4th week the plant has been down The plant's building chairman, Brandon Reisinger, told employees they believe they have solved the software problem and will begin installing the fix broadscale This comes on the heels of a story we covered earlier this week about GM idling their Indiana truck plant to manage inventory Mercedes Benz announced that their new E Class will be loaded with sophisticated new features only to be enjoyed by the upper crust of society. Namely, enhanced voice control, smart lighting, a Superscreen, a selfie cam, TikTok, and Zoom. The new “Superscreen”, combines the large central touchscreen with a second display in front of the passenger where the passenger can stream video content According to the Verge article “Depending on the car’s equipment, a selfie and video camera is mounted either in the gauge display or on top of the dashboard, and the E-Class will offer both Zoom and Webex by Cisco video conferencing, the Vivaldi web browse
Thu, February 23, 2023
Dealership Count Increases, Subway Knows What It Takes, Olive Oil In Your Coffee
Shoot us a Text. It’s Thursday and we’re talking about a new report that shows overall Dealership growth in the U.S. We also talk about Subway’s charging oasis as well as Starbucks CEO Howard Schultz getting creative. According to Urban Science’s annual automotive franchise report, the number of Franchised Auto Dealers in the US increased in 2022 following two years of consecutive declines. There were 18,257 new-vehicle dealerships as of Jan. 1, 2023, a 27 store increase California + 25 dealerships, Texas +9, and Virginia +5 Michigan -9, Indiana -7 and Minnesota -5 Avg new vehicles sold by U.S. dealerships declined by 67 units to 759 Forecast of 15 million new vehicles this year, and projected per Dealership new car sales of 818 units in 2023 "barring any unforeseen circumstances." 8% increase In a move greatly lauded by team ASOTU, Subway is announcing a partnership with GenZ EV Solutions to build a charging oasis so you can recharge while you refuel. Subway currently has over 37k franchises and have been consistently committed to reducing environmental impact, as seen by their opening of ‘eco-restaurants.’ “Starting in 2023, “Subway EV charging oasis” parks with multiple spots, picnic tables, Wi-Fi, restrooms, green space, and playgrounds will be installed at select locations.” As a part of the effort, new or fresh remodels will also get a small format charging bank. Starbucks is rolling out a new line of beverages made with extra virgin olive oil. This is not a joke. Last year Starbucks CEO Howard Schultz began consuming a tablespoon of olive oil every day after meeting olive oil producer Tommaso Asaro. “When we got together and started doing this ritual I said to [Asaro], I know you think I’m going to be crazy, but have you ever thought of infusing a tablespoon of olive oil with Starbucks coffee?” said Schultz. “He thought it was a little strange.” The new drinks are branded as Oleato and will be a latte with oat milk and olive oil, an ice shaken espresso with oat milk, hazelnut flavor and olive oil, and the Oleato golden foam cold brew with 2 olive oil servings. Each tablespoon of olive oil adds 120 calories per serving. When asked about those extra calories, Randy Brewer, Chief Marketing Officer said “We haven’t seen that as a barrier, we’re not too concerned about that.” Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at <a href='https://www.as
Wed, February 22, 2023
Disruption Day for ASOTU, Carvana turns 10, EV Soap Opera
Shoot us a Text. This Wednesday is all about disruption. Not the buzzword kind, but the real kind as we talk about ASOTU’s next evolution. We also blow out the candles on Carvana’s 10 year birthday cake, as well as give our grocery store magazine review of the soap opera that is the EV transition. Automotive Ventures partnership and what is next for the ASOTUverse Carvana celebrated its 10th birthday yesterday with an ironic stock price of $1 for every year the company has been in business at $10.04 Intense focus on customer experience starting in 2013 led to CVNA being one of the youngest company ever to debut on the Fortune 500 First vending machine appeared in Nashville in 2015 "Ten years ago, when we sold our first car online in Atlanta, Georgia, it was hard to imagine at that time just how far we would come in our first decade. Carvana’s core values and our belief in treating people better have led the way towards creating a better car buying and selling experience," said Ernie Garcia, Carvana Founder and CEO According to a new study presented by Cox Automotive, in 2022, 81% of shoppers responded that the overall car buying experience was improved by online activities As the EV world turns: According to recent data, every $100 in Tesla revenue turns into $26 in profit which is far greater than its competitors proving a major competitive advantage. Despite the newsmaking antics of CEO Elon Musk and the company’s recent stock value reckoning, the value of Tesla still remains greater than Toyota Motor Co., Mercedes-Benz Group AG, Volkswagen AG, BMW AG, General Motors Co., Stellantis NV and Ford Motor Co. combined. The current court case focusing on Elon Musk’s $56B pay package heard closing arguments yesterday in a Delaware court. Chancellor Kathaleen McCormick who is presiding over the case called the prosecution's argument “elegant” and a “kill shot” as they attempt to discredit the manner in which the board posed the pay plan to shareholders for a vote. The defense argues that the package was tied to overall performance and shareholders have received over a 10x increase in stock value since the vote Musk told the court that the pay package was a way to help fulfill ambitions for space travel saying "It's a way to get humanity to Mars," he testified in November. "So Tesla can assist in potentially achieving that." A WSJ article is featuring the broad disagreement on <a href='https:/
Tue, February 21, 2023
Battery Swaps on the Rise, Tech v Tech, Flying w/ Kids
Shoot us a Text. We’re talking on Tuesday as we talk about an increase in battery swapping stations. We also talk about a Texas high school tech competition as well as a new airline policy that makes it easier to fly with kids. Chinese EV maker, Nio, plans on adding 1,000 battery swap stations to its network by the end of the year according to Founder and Chairman William Li, bringing the total number of the stations to 2300 The method solves several problems included long waits at charge stations as well as grid strain as the swap out batteries can be charged during off peak times The swap is done in a station that looks like a shoe box and is fully autonomous. It takes about 7 minutes In order for the method to truly become convenient, it will require mass adoption across brands Back in December, 40 teams of high school technical trade students competed in the North Texas Automobile Dealers Auto Tech Competition; a troubleshooting competition where teams were in a timed event to follow a service ticket and solve the stated problemes Each team had a Dealer sponsor for several weeks before the event to prepare them 117 students competed and over 700 attended the trade show event Prizes includedSnap-on tool sets, job offers and advanced training paid for by the Carroll Shelby Foundation and North Texas Automobile Dealers Auto Tech association. Competitors were also treated to ride-alongs around nearby IndyCar and NASCAR track Joe Laubhan, service director at Classic Chevrolet in Grapevine and a member of the association's education panel, did mock interviews to evaluate students' engagement. In recent years, he said he's hired a total of four students from the competitions. Two are now certified technicians, the third is on track to earn GM's elite world-class tech certification and the fourth is an apprentice and close to becoming certified. Classic Chevrolet also hired a student from the December event. Certified techs can earn $70-80k per year right out of school Retail Auto is a family business and we tend to see lots of families being brought along for conferences and events. Today, United has some good news for all of you family flyers as they open up more ‘preferred’ seats to travelers under 12 years of age so they can easily book seats next to the
Mon, February 20, 2023
A New Champion, Frontline Fundamentals, Pop-up Brand Play by Chick-fil-A
Shoot us a Text. Welcome to another wonderful week in Retail Auto as we talk about the new leader among publicly traded Auto Dealers. We also talk about some very sage wisdom coming from Dealership front lines, as well as a notable brand activation we can all learn from. It’s official, we have a new frontrunner as Lithia has officially overtaken AutoNation , who has held the #1 position since 1997, as the largest publicly held Auto Dealer Lithia’s new vehicle sales rose 4.2% last year as they retailed 271,596 new vehicles…40k more than AutoNation who’s sales dropped 12% over the same period Lithia’s climb to the top was strategic and steady Broke into the top 10 in 1999 Hovered between 8 and 9 from 2000-2014 Acquired their first store, DCH Group in 2014 No. 5 in 2015, No. 4 in 2016 and No. 3 in 2018 Passed Penske for the No. 2 spot in 2021 CEO Bryan DeBoer played pinball with Paul in January 2022 at the Auto Team America Buy/Sell Summit at NADA Claimed the No. 1 spot They had no comment on surpassing AutoNation in the top position Key story about fundamentals with Jordan Cox , Digital Marketing Manager at Gates Automotive in Middlebury, IN “A few weeks ago Clint and I were talking and laughing and crying, and we decided to come up with as many Sam-isms as we could. Clint and Sam both grew up on farms, so they would pull out great little farm sayings from time to time, and one of my favorites was, "We ain't farming half as good as we already know how." " Lately, I've been thinking of that in terms of knowing how to treat people. We already know how to talk to people, how to help people, and how to help them move toward what they want. " Chick-fil-A is being, well, themselves as they open “The Brake Room,” a storefront pop-up in Manhattan’s upper east side, where food delivery gig workers for services like Uber Eats, Grubhub, and DoorDash can take a break between deliveries. Open Monday through Saturday between 11 a.m. and 7 p.m. to food delivery workers showing proof of a delivery within the past week Access to bathrooms, beverages, bike storage, outlets for phone chargers, a variety of seating and Wi-Fi NYC Mayor Eric Adams in October announced an initiative to convert empty spaces like vacant newsstands into res
Fri, February 17, 2023
AutoNation Puts a Bow On It, Russian Used Cars, A Rabbi Uses Chat GPT
Shoot us a Text. It’s Friday, folks! Today we talk about this morning’s earnings release from AutoNation with a killer opening line. We also talk about the Russian used car market as we near the 1 year anniversary of the Ukraine invasion. We also talk about a Rabbi who used ChatGPT to write a sermon. In a press release issued just this morning, AutoNation announced their Q4 earnings report indicating a 2% increase in YoY revenue and a 26% drop in net profits. Capped off a record year of $27 Billion Led the press release with the phrase, “America's most admired automotive retailer…” “Our commitment to our Customers was recognized in Reputations' Automotive Reputation Report as we were ranked the No. 1 Public Dealer for 2022”, said CEO Michael Manley" Said success was due to: focusing on operational excellence, including Customer satisfaction, sales efficiency, sales effectiveness, and asset utilization Also opening four additional AutoNation USA stores and adding nine franchises acquired from the Moreland Auto Group “Enhanced their digital storefront” Acquired Repair Smith mobile service company $1.7 billion was deployed to repurchase 15.6 million shares, reducing shares outstanding by 25% from a year ago. If you think there are affordability issues in new cars in the US, consider what is happening in the Russian used car market as we approach the 1 year anniversary of the Russian invasion of Ukraine where the new car business which is heavily dependent on imports has been decimated. Used cars accounted for 75% of all vehicles sold in 2022 1 ruble = $0.013 Avg new car 2.33mrbls = $31,289 Avg used car .89mrbls = $11,900 2.62x US new avg: $49,388 US Used avg: $29,533 2019 sales of new and used were even In 2022, 19.6B New 57.7B used (almost 3x) One employee at a major Russian company, Anton, felt lucky to get a used Skoda (offshoot of VW) in December, for 2.5 mrbls which was almost twice the price as it was only a year earlier We’ve been talking a lot about Chat GPT and many of its potential benefits and risks over the last months. A NY Rabbi, Joshua Franklin, recently used the AI generator to write a 1,000 word sermon based on a portion of the Torah focusing on intimacy and vulnerability <l
Thu, February 16, 2023
Ford’s Plans to Be More Efficient, Tesla’s Buffalo Union Fight, Superchargers For All
Shoot us a Text. Welcome to a beautiful Thursday as we talk about Ford’s plan to close a major EV financial deficit between competitors. We also talk about a unionizing fight brewing at Tesla’s Gigafactory in Buffalo as well as the impact of new legislation on that very same factory. After Ford reported drab earnings last week, they’ve keyed in on closing an $8B cost deficit between them and their EV creating competitors, according to company executives On the earnings call the company blamed chip shortages, supply chain disruptions, and ‘instabilities’ CFO, John Lawler said the company can save 2.5B through better management of production schedules and and anticipated drops in commodity prices Facing an additional $5B in cost differentials, CEO Jim Farley says plans to close the gap by mid-decade include Reducing Dealer inventories, driving more transactions online, increasing aerodynamics (thanks F1), increasing battery efficiency, and moving to large underbody castings, an approach pioneered by Tesla "We have a bracket group," Farley said. "We have hundreds of engineers who make brackets. If you want to make 8% margins in EVs ... There's no bracket group." Tesla has fired dozens of workers at its Gigafactory in Buffalo, NY after an apparent unionization push at the factory that was originally a old steel mill. According to the company’s website , the 1.2M sq/ft factory “... manufactures infinitely scalable clean energy generation and storage products – solar panels, Solar Roof, the Powerwall home battery, and the Powerpack battery system for commercial and utility-scale sites.” In recent years the company has added almost a thousand workers who perform data annotation for Tesla’s Autopilot and self-driving efforts, Many of whom announced their intent to unionize stating they want better pay, job security, and less tracking at work They are supported by Workers United, whom are known for unionizing workers at hundreds of Starbucks stores In a filing with the US National Labor Relations Board, the union Workers United accused Tesla of illegally terminating the employees “in retaliation for union activity and to discourage union activity.” The union asked the labor board to seek a federal court injunction “to prevent irreparable destruction of employee rights resulting from Tesla’s unlawful conduct.” Yesterday, the White House announced measures to incentivize US made EV charging infrastructure spurrin
Wed, February 15, 2023
Volvo Plans Direct, TikTok v Hyundai/Kia, & Breaking Down Consumer Pricing
Shoot us a Text. When hump day rolls around and it drops us in the middle of the month, we have to talk about some controversy, naturally. Leading off this morning are Volvo’s plans for a direct to consumer model, followed by Hyundai and Kia battling TikTok and the release of the consumer pricing index. Volvo’s European plans for direct to consumer sales has US dealers prepping for defensive measures with the automaker. Volvo’s new CEO, Jim Rowan, argued the disconnect between the OEM and consumer in pre- and post- sale environments goes against his experience in the consumer electronics industry. “Dealer associations in at least two states — Virginia and California — sent Volvo letters warning that the strategy might violate the automaker's dealer agreements or state laws meant to prevent automakers from competing with their franchises.” Plans are to use the UK as a proving ground and learning environment for the brand Following the TikTok trend of stolen Kia and Hyundai vehicles, the automaker is set to provide a software update to mitigate the risk to owners. Way back on Nov. 23, we talked about how a St. Louis dealership was installing $200 bluetooth repeaters to prevent theft. Hyundai’s free software patch will be available on 1M out of the 4M affected vehicles, and include an anti-theft sticker to deter attack, a longer alarm, and the need for a physical key to start the vehicle. “Hyundai is committed to ensuring the quality and integrity of our products through continuous improvement and is pleased to provide affected customers with an additional theft deterrent through this software upgrade,” said Randy Parker, CEO, Hyundai Motor America. “We have prioritized the upgrade’s availability for owners and lessees of our highest selling vehicles and those most targeted by thieves in order for dealers to service them first.” Hyundai expects to have a fix for the other 3M vulnerable vehicles in June. The consumer price index was released yesterday, showing slowing inflation, and markets stayed stable despite growth in major index categories like food and energy. The average of all items was up 6.4%, with eggs taking the top spot up over 70% YOY. Vehicles took an 11.6% dip, which we know in the industry, which is a line item attached to only a small subset of the popula
Tue, February 14, 2023
First Look at Afeela, Ford Round Up, and Business Ready AI
Shoot us a Text. Welcome to Tuesday, where we hope your day is less filled with Super Bowl Commercial conversations. We take a first look at Afeela, run around the block with Ford plans, and introduce an AI model tuned for your business. The Sony Honda Mobility project has launched under the brand name ‘Afeela’ with projected 10 year lease options. Executives say they’re in it for the long haul, not as an experiment to test the waters. Sony sees the automotive space as the next natural frontier for their media business. “The important thing is software,” COO Izumi Kawanishi said. “We have to strengthen our software technology. That means we can provide mobility services for the future. We have to change the business from hardware to software.” Let’s take a round up jog with Ford as they shrink staff in Europe and expand manufacturing in Michigan . The company plans to slash 2,300 jobs in Germany, 1,300 in the UK and 200 elsewhere, all related to production development and administration. The restructure comes after Q4 results that were down $11B YOY. Farley: “I don’t want to just make the output the cuts without redesigning the work. This has to be sustainable and that’s how we’re thinking about it nowadays,” Speaking of being sustainable BlueOval Battery Park Michigan was announced on Monday, and will open in 2026 in Marshall, about 100 miles west of Detroit. The plant will employ 2,500 workers and have the capacity to build 35 gigawatt-hours of lithium iron phosphate cells a year, enough to power 400K EVs. Ford currently uses nickel cobalt manganese battery packs, which are less durable and charge slower than lithium based batteries. With ChatGPT and Bard owning news headlines, AI company Writer has been training language model options for enterprise business. Palymra comes in three sizes: 128 million, 5 billion or 20 billion parameters, respectively, for Small, Base and Large. The model is trained on business and marketing writing, not Reddit posts and Project Gutenberg. You can upload your company's files, including posts
Mon, February 13, 2023
Big Game EVs, Toyota Changes its Tune, & Hyundai Into Long Term Rentals
Shoot us a Text. We are wiping off the tears as the Eagles suffered a loss last night and keeping the best part of the game…the commercials. In other news, Toyota has changed its tune in regards to EVs and Hyundai is giving consumers an option to try their hand at EV life. The Super Bowl was home to more than just the Eagles loss as auto manufacturers pressed in on the new EV landscape. Let’s weigh in Jeep EVs do the Electric Boogie and find a charger at the top of the trail GM tells a marketing story through Netflix partnership Kia marries #BinkyDad and Rocky theme…the spit though Stellantis pushes boundaries with Ram ‘Premature Electrification’ Shortly after a change in command, the new Toyota boss has promised an accelerated EV future for the automaker. Sato said the accelerated EV rollout would center around a next-generation platform, which is expected to arrive around 2026. The push for EVs will come from the automaker’s premium brand, Lexus, first. Sato also confirmed that a diverse powertrain strategy, including ICE, hybrid, plug-in hybrid, and hydrogen will still be present in manufacturing. An overarching strategy of the new leadership is to ensure Toyota is considered a mobility company, not just an automaker. Hyundai launches a new month-long subscription service to try out an EV with registration and insurance included. Evolve+ 28 days, Ioniq 5 is $899+ and Kona EV is $699, 1000 miles allowed Could be seen as a path to direct to consumer sales Subscription happens in a paperless environment and includes pickup at your local dealer #TILI: Sounds like a great opportunity for an abundance of customer care Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 10, 2023
Lexus & Kia on Top, BYD Share Sale, & Dick’s Sporting Goods Trade Playbook
Shoot us a Text. Welcome to Friday with Cirillo, the day where Paul rolled out one day after Cirillo got in his new seat. We are talking about new JD Power dependability rankings, Berkshire Hathaway selling off BYD shares, and Dick’ Sporting Taking a play out of the automotive playbook. Lexus takes back the top spot for dependability, while Kia dropped to 3rd overall while maintaining their top spot with mass market brands. Most Dependable Model(s) - Tie 1: Lexus RX 1: Toyota C-HR Compact SUV 1: Kia Sportage 2: Buick Envision 3: Jeep Cherokee “Infotainment technology continues to be a sticking point for many automakers, representing twice as many problems as the next largest category, vehicle exteriors.” “This year's study includes Tesla owner responses for the first time, with Tesla scoring 242 problems per 100 vehicles.” -Remain unranked due to Tesla restricting data Berkshire Hathaway recently sold off a large portion of their shares in Chinese EV automaker BYD . Berkshire initially invested in BYD in 2008, purchasing 228 million shares for $232 million. “The sale on February 3 lowered Berkshire's holdings in BYD's issued H-shares to 11.87% from 12.26%, the filing to the Hong Kong Stock Exchange on Thursday showed.” The sale accounts for $139 million in share value Warren Buffett’s company has now sold nearly 95 million of its original shares of Chinese electric carmaker. Dick’s Sporting Goods is expanding on their new trade cycle management strategy by expanding their Trade In events to 19 states and 200 events in 2023. Athletes can exchange their used sports gear and receive DICK'S gift cards or have the option to donate to select local sports organizations. Items that do not qualify for trade-in can be donated or recycled responsibly. The average trade-in total was $88 and almost all attendees said they would be interested in reselling used gear at least once a year. Brendan Candon, CEO of SidelineSwap, said "Last year's trade-in events with DICK'S clearly showed that DICK'S athletes loved the convenience of trade-in events, and enjoyed being able to easily turn their used sports & outdoors gear into credit t
Thu, February 09, 2023
Big ASOTU Announcement, Used Cars Rise, CA Crowns Tesla, D2C reversal
Shoot us a Text. It’s a great Thursday for Retail Auto as we make a milestone announcement (we think) for team-ASOTU. We also talk used car pricing, Tesla in California, and a notable shift happening in retail footwear. Michael Cirillo joining as CoS Used car prices have seen their second straight month of increases as the Manheim Used Car Index bumped up another 2.5% from December to January indicating a higher than expected demand Still down 11% YoY This is an atypical change for January as values historically remain fairly level across the two months There are even some indicators that hint at Spring. Maybe the groundhog was wrong? Tesla’s Models 3 and Y are named the best selling vehicles in California unseating Toyota’s Rav 4 and Camry from their throne. 1 in 5 cars in CA are electric and the state accounts for 40% of all electric vehicles sold in the US Tesla’s market share in CA is 11.2% as opposed 3.5% in the rest of the country Toyota still topped CA market share at 17.3% Major footwear brands are showing signs of reversing course and turning back to wholesale after sharp moves in the direct to consumer space Namely, Nike is loosening allocation to wholesale channels such as Foot Locker after several years of limiting volume through wholesale channels They recently invited wholesalers to visit their campus for the first time in three years Design partnerships with wholesale brands for exclusive offerings of its popular AF1 shoes are also on the rise Since the shift began, startup shoe brands such as “On” and “Allbirds” have been seeing great success as they embrace traditional wholesale channels according to estimates by the Wall Street Journal Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, February 08, 2023
Hertz Missed the EV Mark, GM Goes Streaming, & Check Your Valentines
Shoot us a Text. We are wrapping up a Texas tour with some fun things from around auto and culture. We check out how Hertz came up short of their Tesla targets, GM vividly explains their marketing plans in a marketing thing, and we throw the penalty flag on Valentine’s Day AI mastery. Hertz and Tesla miss the target for fleet vehicles in 2022. “That implies the company's fleet has 48,344 Tesla EVs, or less than half of the 100,000 electric cars the company decided to order from the automaker by the end of 2022.” “Hertz's fourth-quarter revenue rose 4% to $2.04 billion.” GM, Netflix, Will Ferrel and millions of dollars come together for an ad in this year’s Super Bowl. Popular Netflix shows Bridgerton, Stranger Things, and Army of the Dead are all featured as Will Ferrel moves through various scenes while driving or featuring a GM EV This is a precursor for a deal that will have GM EV’s placed in Netflix programming and an effort to normalize them in various scenarios Seems like Valentines Day , Legal Drafts, and Letters to the Teacher are now being brought to you by AI generated text. “42% of U.S. men plan to use AI to write a Valentine’s note this year, compared to fewer than one-fifth of women.” “McAfee also asked respondents to say which of two short love poems they found more romantic—one written by E. E. Cummings or one written by ChatGPT in the style of E. E. Cummings. ChatGPT’s poem won by a landslide, with 67% of U.S. respondents saying it was more romantic.” Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, February 07, 2023
Stellantis’ Big Game Plans, Redefining “SUV”, Just Use Your Phone
Shoot us a Text. We’re poolside in a Texas hotel for this Tuesday morning as we talk about the Treasury Department changing the definition of an SUV, Super Bowl ads from OEMs and how to cut down on those pesky Zoom calls. The US Treasury is reversing a previous stance and changing its definition of "SUV." The adjustment will make more EVs fall under the SUV category. Electric SUVs retailed at, or below, $80K are eligible for up to $7,500 in tax credits, whereas smaller vehicles cap at $55K. GM also thanked the Treasury and hailed the changes: “The alignment on classification will provide the needed clarity to consumers and dealers, as well as regulators and manufacturers.” Stellantis confirmed that the company will be running two Superbowl ads this year after taking last year off which will include a 60 second ad in the second quarter for Jeep as well as a 60 second ad in the fourth quarter for Ram Ads this year cost $7M for each 30 seconds Other confirmed auto advertisers are GM and Kia running a 30 second spot each Last year there were ads by GM, KIA, Toyota, BMW, Nissan, and Polestar According to one phone trainer, sometimes the Zoom call should probably just be a phone call . “In a videoconference, on some level you’re always performing. But when you’re just talking on the phone, you can stretch your back, doodle, take a brisk walk, or simply gaze out the window—providing a boost to your mental or physical health.” Cites many people are keeping chats in text or email longer than they need to Then Covid-19 got everyone addicted to video conferencing tools such as Zoom, and Slack grew into a vital forum for workplace chatter—leaving the good ol’ curly-corded handset to gather dust. A survey conducted before the pandemic found that four in five younger Americans had to mentally prepare themselves before making a call. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, February 06, 2023
Monday Encouragement, Live Conversations From NADA, Wheels Up to TX!
Shoot us a Text. Welcome to a relaxed Monday as we ramp up into the week. We have a special treat today as we replay some of the conversations we had with dealers and industry leaders from NADA. Alain Nana-Sinkhain and Matt Jones of TrueCar reminded us to have the courage to doubt yourself. Don’t hold on so tightly to what you know that you aren’t open to what could be true in the future. Alex Vetter of Cars.com encouraged dealers to lead with technology in a way that empowers the consumer. Christopher Singleton, COO of the Mike Terry Auto Group shared what their group has learned after making multiple acquisitions and the importance of systems and processes. Jon Lett and CJ Settles of Pure Country Automotive told us what they’re doing to impact their community and how that makes it all worth it. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 03, 2023
Special Guest Steve Greenfield, ?s on Dealer’s Minds, & Salvaged Teslas
Shoot us a Text. Welcome to a packed Friday of conversation with our good friend Steve Greenfield. Just before All Things Used Cars on Clubhouse, we are talking about the recent installment of the Auto Intel Report, a partnership for EV battery reports, and lightly damaged Teslas headed to the salvage yard. The newest installment of the Automotive Ventures monthly Auto Intel Report is out and it is centered around the conversation with top dealer group leaders at NADA Questions Dealers, OEMs, and Allied partners should be asking themselves A lot around SPOC (Single Point of Contact), EV future, and People strategies An introduction to Pete Batten, Partner at the newly formed Auto Market Insights Recently, Automotive Ventures’ portfolio company Recurrent announced their partnership with Experian to give dealers a packaged opportunity to provide EV insights to customers. “Our new alliance with Recurrent ensures data attributes unique to EVs are easily accessible for all parties whether looking to buy or sell a used EV—which is essential knowledge in today’s evolving market,” said John Gray, Experian’s president of automotive, North America. Autocheck subscriptions now have an available add on of the Recurrent reports Insurance companies are increasingly deciding to write off low-mileage Teslas because they are too expensive to fix, according to a new report from Reuters. Recent salvage auction listings showed that the "vast majority" of the 120 Model Y vehicles listed had less than 10,000 miles on them, insured by names like State Farm, Geico, and Progressive. For example, a $61,000 2022 Model Y Long Range EV was in a front collision and would have cost more than $50,000 to fix had the insurer approved the repair. The average Tesla owner with a good driving history and good credit will pay about $2040 a year for a Model Y and as much as $3044 for a Model X. The average cost to insure a Model 3 is almost 30 percent higher than the national average for car insurance, according to Nerdwallet. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: <a href='https://www.linkedin.com/compan
Thu, February 02, 2023
Groundhog Out of the Dirt, Hyundai Highs, ‘EV’ Like “Kev”, Paid AI
Shoot us a Text. Thursday is looking good as Hyundai stands hopefully as high as the groundhog. We also give an update from across non-gas powered vehicles, as well as what’s going on over at ChatGPT. The numbers are in and January is a record setter for Hyundai Motor America as total sales increased by 9% making this their best January ever Reported sales were 52,001 units which is up 9% over January 2022 and the third consecutive month of record total sales “Achieving year-over-year growth in retail and total sales, as well as a record-breaking January, highlights the company's commitment to delivering a great product lineup,” said Randy Parker, CEO, Hyundai Motor America. “The positive feedback from our dealers during the 2023 NADA Show demonstrates Hyundai’s strong standing in the industry and the level of trust and confidence dealers have in the brand.” Hyundai Motor America has been ranked first in customer loyalty in the automotive industry for the 14th consecutive year according to the Brand Keys Customer Loyalty Engagement Index. Also just released a new marketing campaign and commercial featuring Kevin Bacon and his daughter Sosie…soooo (watch till the subscribe…) Non Petrol update: According to a source close to the matter, Reuters reports that Tesla’s Shanghai plant is boosting production to satisfy a significant demand spike in light of recent price cuts. Producing over 20k vehicles a week back to September 2022 highs Speaking of Tesla, the Roadster turns 15 ! A joint Honda / GM fuel cell venture has cut the production cost of the cell to one third and announced a CR-V with the power plant to be produced in Ohio and released in the US and Japan late next year Citing major performance improvements, the company says it is an important part of their plan to phase out all petrol powered vehicles by … 2040 as they see hydrogen as a primary way to power large passenger vehicles as well as commercial equipment An Audi e-tron collided with a Toyota sedan in British Columbia and the battery pack ‘ejected’ and ended up across the street …on fire Popular AI chat tool and high school essay writer's best friend, ChatGPT has converted from <a href='https://www.theverge.com/2023/2/1/23581561/chatgpt-plus-paid-option
Wed, February 01, 2023
Toyota and Science, GM Making It Rain, Gen Alpha Incoming
Shoot us a Text. Welcome to Wednesday as we talk about Toyota’s very scientific presentation to the World Economic Forum. We also talk about GM’s healthy profits, as well as Generation Alpha on the retail doorstep. We’re talking about Toyota again this morning as their Chief Scientist Gill Pratt made a presentation at the World Economic Forum in Davos that posed a very scientific argument how a hybrid path to electrification will make a significantly more positive impact on carbon emissions vs an all electric only Argument starts with 100 ICE Vehicles producing 250 g or CO2 per kilometer Then assumes a limited supply of lithium (100 KW hours of battery life) This can only fully electrify 1 of the 100 vehicles (Producing 248.5 g of CO2) Finally, he models spreading that same lithium supply to create 90 1.1 KW hour batteries needed to make them hybrid (Producing 205 f of CO2) As opposed to stopping ICE production, Toyota plans to sell some 5.5 million standard and plug-in hybrids a year in 2030 — more than double last year's global total of 2.6 million. Pratt compared EV aspirations to the same over-assumptions we had about autonomous driving just a few years back GM is coming out of Q4 swinging with a posted $2B in profit as their supply chain loosens up “GM executives told analysts the company doesn’t plan to get drawn into a price war on electric vehicles, following large cuts recently from Tesla increase;and Ford Motor Co. ‘We think right now we’re priced where we need to be,’ GM Chief Executive Mary Barra said on an earnings call.” GM is planning several new EV model launches this year, including the Blazer, which is a similar size as the Tesla Model Y and Ford Mach-E, and priced below both, starting around $36,000. Announced yesterday they are investing $650 million in a mining company to jointly develop a lithium-extraction project in Nevada. Is it time for retailers (and dealers) to start paying attention to Gen Alpha as they influence purchasing decisions and begin to enter their teenage years ? Started in 2010, will end in 2025 and will be the largest generation of 2B Research last year from Cassandra by Big Village found 64 percent of seven- to 12-year-olds would rather be a YouTube social media influencer than the President of the U.S. When asked how they introduce themselves, 58 percent of them said as a gamer, with 82 percent agre
Tue, January 31, 2023
ASOTU Triple Crown, Ford Cuts EV Prices, Hertz Hearts Denver
Shoot us a Text. Time to close out strong as we talk about Toyota’s triple crown, Ford matching Tesla’s price cut moves, and Hertz brings the ‘try before you buy’ to Denver. Toyota gets the ASOTU Triple Crown this morning (is that even a real thing?) as they beat out competitors to hold the top spot as the world's top selling automaker , don’t have any questions at their make meeting, and show everyone what a healthy leadership transition should look like 10.5 million vehicles followed by VW 8.3 million No questions at make meeting (we mentioned this yesterday) Longtime CEO, Akio Toyoda, 66 years old, announced last week he would be handing the reins to 53-year-old engineer Koji Sato to take over as president and CEO in April, while Mr. Toyoda would become chairman “When it comes to digitalization, electrification and connectivity, I personally feel that I belong to the older generation…for me to take a step back is important.” Earlier this year he said he believes he represents a silent majority who believe the EV transition is moving too quickly and being forced by Washington instead of consumer demand After Tesla hit the market with a substantial price cut , Ford is following suit with discounts as much as $5600 on its Mach-E. It had raised prices 6 months ago and has reversed course to maintain market share in the competitive space with an average cut of $4500 (about 6%) across trim levels Largest cut is to the GT Extended Range ($5900) All trims except the GT Ext Range fall under the $55k price point to receive the federal $7500 tax credit Extended range feature cut from $8700 to $7000 A recently made “Try before you buy” partnership between rental car company Hertz and the city of Denver aims to increase EV adoption and provide significant data to inform charger placement across the city “Hertz Electrifies” will bring some 5,200 rental EVs to the city as part of the program that allows residents to live the EV life for several days to see how it fits their lifestyle “will also fund and oversee the installation of dozens of public EV chargers at Den
Mon, January 30, 2023
Make Meeting Melody, Closing Out January, Cybertruck Volume Not Until 2024
Shoot us a Text. We’re rolling into the last 2 days of the month with a full head of steam as NADA is over and the work of the industry gets a speed boost. We’ll be giving some ‘day after’ insights, covering what happened in the make meetings, and talking about some cyber-delays. What Happened in the Make Meetings and beyond? Ford loosened restrictions on lower tier of EV dealers Hyundai is up to 5.2 percent market share from 4.9 percent at the end 2022 Nissan says popular Ariya model will continue to be in tight supply No questions at Toyota meeting Grumpy dealers at the Mercedes meeting Hyundai cuts ties to low price positioning At super session, alluded to plans to sell through Amazon, deliver through dealer network Charlie Hall is in his 1st year as the VW National Dealer Advisory Council and is advocating heavily to sell Scout vehicles through VW Dealers "We were completely caught off guard with the announcement and then the lack of information that came after that announcement," Hall said, adding, "We want Scout vehicles to be in our VW showrooms."Hall said VW dealers have been requesting for decades the types of vehicles that Scout plans to launch. The brand's existing dealer network "can execute the Scout vision. And we have an idea of what that is, because we share that same vision," he said. "We've been looking for that kind of product to be in our showroom for a long time. It dovetails perfectly with the rest of our lineup." Elon Musk says not to expect meaningful production of the long awaited Cybertruck until 2024. "The start of production is always very slow," Mr. Musk said on an earnings call, adding, "So I wouldn't put too much stock in start of production. It's kind of when does volume production actually happen, and that's next year." Production will begin this year Tesla is also working on a new platform with details to be released in March Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Sun, January 29, 2023
Special Guest Rhett Ricart, Final Day of NADA Show, Hyundai Dealers are Rocket Ships
Shoot us a Text. We’re still going strong from the 2023 NADA Show and we grab Rhett Ricart as he’s heading to the Main Stage. Plus, we talk about Randy Parker, CEO of Hyundai America and his analogy of customers as the universe and the dealer network as rocket ships. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Sat, January 28, 2023
NADA Saturday Vibes, Gubagoo Interviews, Talking To Lots of Dealers
Shoot us a Text. We're rolling heavy into NADA Saturday, as we reflect on the 2 days we've had in Dallas and look forward to the next 2. Plus, we hang out with Joe and Molly from Gubagoo ! ASOTU’s Saturday coverage of the 2023 NADA Show is presented by Gubagoo! Visit Gubagoo’s booth #2509 and learn more at https://gubagoo.com/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, January 27, 2023
NADA Show Floor Ribbon Cutting, presented by Quantum5
Shoot us a Text. We're live from the NADA Show Floor for the Ribbon Cutting. We grabbed a couple of friends to chat about their NADA Show experience so far. Plus, we had Dave O'Brien and Sarah Vantine from Quantum5 Check out our complete livestream schedule ! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, January 26, 2023
Live from Michael Cirillo’s House, Talking NADA (of course)
Shoot us a Text. We’re on the ground in Dallas with Michael Cirillo as we talk about the industry that we love, the relationships that it’s built upon, and how it’s the best time to be in automotive whether you’re a freshman, sophomore or junior. Follow ASOTU Events for all the behind the scenes action from NADA. See our whole schedule of events. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, January 25, 2023
The NADA Convergences Begins, and Getting Back To Basics w/ Guest Todd Caputo
Shoot us a Text. Today it begins as the NADA Show in Dallas draws in tens of thousands from across the industry and across the country. ASOTU coverage of the show means that no one has to feel like they missed out. Go to www.ASOTUNADA.com for our livestream and content schedule. We have 2nd generation Dealer and special guest Todd Caputo on the show to give us all the tips from his 25 years going to the show. We also talk about why getting 'back to basics' is going to separate the winners from the losers in 2023. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, January 24, 2023
1970’s Toyota Wait Lists, Stability Of Retail Auto, Tesla Bumps Prices
Shoot us a Text. Throttle down with us this Tuesday as we talk about the benefits of “legacy” in our conversations about broad stability in Retail Auto as opposed to much of the popular workplace narratives.Steve Gates started selling Toyota’s in high school …over 50 years ago. He’s now the dealer principal of Gates Auto Family, a group of 11 rooftops in Kentucky, Tennessee and Indiana that includes three Toyota stores. When the pandemic started he didn’t think there was any way they could survive with no ground stocThen he remembered selling Toyota’s with his dad in the 70’s, much the same way as today when a $25 deposit would reserve you a soon to be built Toyota After spending many years on the board, Gates is now the Chairman of the Toyota National Dealer Advisory Council "I would love to get younger dealers involved in dealer council because it is vital," Gates said. "We don't need guys that are 70 years old on dealer council — we need 30-year-old dealers. And so that's one of the things I hope to be able to do, is convince men and women to get involved in dealer council." Big tech layoffs continue as Google and Spotify enter the mix Google, known for its profitability and current $100B cash reserve, high pay and lavish perks announced the layoffs of 12,000 people via a sudden and unexpected email on Friday. The largest in the company’s history Yesterday the company with over 180k employees had an all-hands meeting where Executives and CEO Sundar Pichai responded empathetically but also offered counter arguments to employee comments including: Two employees asked for ‘psychological safety’ to which the response was: "If you interpret psychological safety as removing all uncertainty, we can't do this," said Philipp Schindler, Google's chief business officer.” One Googler questioned the accountability of the leadership "Responsibility without consequence seems like an empty platitude. Is leadership foregoing bonuses and pay raises this year? Will anyone be stepping down?"Pichai said Google executives would take a "very significant reduction in their annual bonus." Spotify also announced an overall 6% reduction in its workforce as 600 of the companies 9000+ employees will be let go from across the company Ambitious spending during the pandemic is cited by CEO Daniel Ek “Over the last few months we’ve made a considerable effort to rein-in costs, but it simply hasn’t been enough,”. “So while it is clear this path is the right one for S
Mon, January 23, 2023
The BIG Week Ahead, Sales Process Shift, Retail = Personal and Pizza
Shoot us a Text. It’s a big week for the Retail Auto Industry as the 2023 NADA Show is coming in hot and we’re making sure no one is left out! We’ll give you the plan as we also talk about the return of salesmanship, as well as how some retailers are dropping gems for Dealers to pick up. Let’s talk about the NADA schedule for everyone who can and can’t make it this year. ASOTU coverage will be comprehensive on the ground. ASOTUNADA.com Why is it so important to the industry? Dealers, Partners, Make Meetings, etc Wed - Arlington ASOTUx Venue Thurs - JD Power, AN Retail Forum, ATA, NADA Party, AWA Awards Fri - Ribbon cutting, floor open, education, Sat - New Chair, Time Dealer of the Year Sun - Wrap ups and recharge Industry veterans sound off on the quickly evolving changes to the sales process , namely, a return to ‘selling’ as the effects of returning inventory are quickly setting in. Adam Robinson Daniel Goaver David Kain For our last story today we could tell you something about Hertz EV partnership in Denver, or that Tesla Superchargers are moving one step closer to being available for all EV drivers, but instead, we think it’s more helpful to start your week off and end this show with talking about what some progressive retailers are doing This week at the NRF Big Show, Shawn Wilkinson, e-commerce program manager for personalization at Dick’s Sporting Goods, talked about how he led the e-comm department to launch a project of customizing emails to match the interests of the people who were browsing and not converting: aka, intentional personalization Emails had been very general and he implemented a policy of numerous, small tests to see what worked “Art of the Possible” initiative which involved numerous ‘scrappy’ tests to see what worked and then doubled down on those Get cross-functional buy-in within the enterprise; Think of a mission statement and vision; Set clear KPIs to measure success, iterate and demonstrate the value of the program to get further executive buy-in. Home Improvement Retailer, Lowe’s might just be the next desired location for your kid’s next birthday party as the chain is testing its “Build a Birthday” concept at 10 locations in Arizona, California, Indiana, Il
Fri, January 20, 2023
Toyota Calls Their Shot, What Is On Dealers’ Minds, Best And Worst Airlines
Shoot us a Text. It’s Friday and we’re flying through the week as we prep to fly to Dallas for the NADA Show next week. Today we cover Toyota’s production predictions for 2022, a recent Dealer survey, as well as the WSJ list of Best and Worst Airlines in 2022 When a company invents the manufacturing standard the world's manufacturers live by, you should always expect a fierce comeback. TPS, aka, Toyota Production System, aka Lean Manufacturing, aka six sigma, was first introduced by Toyota in the early 20th century. Now despite the challenges of the last few years, the company is poised to have is largest annual output…ever What is ‘just in time’ production? Toyota produced 9.05 vehicles in 2019, 8.58 in 2020, 8.33 in 2022, now 9.6 to 10.66M in 2023 Strong demand, low days supply, currently 18. 29-day supply at Honda, 24 at Mazda and 60 at Ford The company has been the most transparent over the pandemic, as well as conservative. In Nov, they predicted 800k units and delivered 833k Our friends at CARS recently released a survey that reveals the top three pain points dealers are anticipating in 2023 The survey of 121 dealers conducted between Jan 6-11th shows the top concerns to be: Turn more used vehicle more profitably: 94% of dealers said acquiring used inventory and maximizing used-vehicle margins as the top concern Invest in better marketing data more efficiently: 81% of dealers said investing in high-quality audience-targeting data to better leverage media and marketing was the second most significant challenge to address this year Differentiate from competitors: 80% of dealers noted differentiating their dealership from competitors as a top concern “Retailers face new challenges this year as new-car inventory returns, used-car supply shrinks and prices normalize. Dealers’ competitive advantages will come from efficient operations, marketing and customer experience,” CARS chief executive officer Alex Vetter said in a news release The WSJ has released its annual list of “Best and Worst Airlines” and I think we all can agree it’s been a bumpy ride in 2022 Delta hangs on to its #1 spot followed by Alaska, Southwest, United, Allegiant, American, Spirit, Frontier, with JetBlue taking last Most improved goes to both United who jumped 4 spots from 7 to 4 and American who moved from 9th (last) to 6th Basically, even the stats of #1 Delta dropped when it co
Thu, January 19, 2023
COX Used Vehicle Report Surprise, Charging Charges Forward, Technology & Empathy From Pepsi
Shoot us a Text. Thursday is charging ahead as we talk about yesterday’s COX Used Vehicle report. We also talk about some big moves in EV charging networks, as well as PepsiCo’s solution for keeping employees happy and stable. Yesterday's Cox Used vehicle report surprised more than a few folks in the industry as wholesale used prices increased 1.5% from January and days supply of Retail and Wholesale Days’ Supply Below Normal in Mid-January down to 48 days as opposed to 55 days in December and 60 days YoY Consumer sentiment has risen 8% to 64.6% Four of eight major segments saw price increases compared to December, with gains from 0.7% to 2.8%. There is some forward moving energy in the EV charger business this week as several companies see big moves Over the last several days DC fast charger maker Tritium announced its single largest order ever, over 1,000 fast chargers, from petroleum company BP This is the second order from BP which ordered just under 1000 last time and will be placing the chargers across the US, Europe, and Australia Not to be outdone, Shell announced yesterday its acquisition of EV Charging firm, Volta for $169M, who installs chargers with large media screens at public locations such as grocery stores, office buildings and theme parks The company was struggling with cash due to its rapid expansion. Shell will also continue to provide additional cash for growth. Meanwhile, Seattle is struggling with ev charger theft …at least the copper. 8 stations of a 15 station network have been hit since march, some of them twice. In a tight labor market where employee retention is more important than ever, PepsiCo is finding great success as they leveraging technology and empathy to improve the live
Wed, January 18, 2023
Partner Break Ups, EV Glow Ups, Rousing Talk From Lowe’s CEO
Shoot us a Text. Welcome to Wednesday campers! Today we talk about the waning partnership between Ford and VW. We also give a broad look at EV news, as well as an automotive-applicable talk from Lowe’s CEO Mervin Ellison The EV partnership between Ford and VW that has been a big part of Ford’s EV development in Europe is likely to be short lived The partnership announced in 2020 was for Ford to use VW’s MEB architecture to speed development times by as much as 2 years. The company will be releasing its first vehicle on that platform in March. A small sport crossover of similar to the ID4 in size Ford has since said it will be looking to leverage their own tech that has been foundational in the F150 Lightning and Mach E in future vehicles Telling it like it is - Breaks-ups are never easy. To get your mind off it, try taking up a new hobby, watching your favorite movies, reinventing your electric vehicle platform from scratch, increasing your aggression in the biggest auto market in the world, or call your mom. EV Check: Corvette gets electrified with iths $104k gas-electric hybrid E-Ray First ever eAWD system with a 160-hp electric motor over the front axle and a 495-hp, 6.2-liter small-block V-8 powering the rear wheels for a combined 655 hp 0-60 in 2.5 seconds. Only .1 faster than the Gas powered Z06 Stealth Mode lets drivers silently exit their neighborhood on battery power at up to 45 mph Federal tax credit of up to $4k for used EVs goes into effect Less than 2 years old Under 25k sales price Tesla increases the price of it’s 48 amp level 2 home charger $400 in Nov - $350 in Dec - $425 in January Still one of the least expensive level 2 home charging options At this year's National Retail Federation Show, Lowe’s successful CEO Mervin Ellison gave a rousing talk on his journey and gave some good advice to any aspiring executives, “...just take tough assignments” Over his 25 year career, the only jobs he has ever taken were roles where someone was either fired or pushed out “Mr. Ellison, who is Black, also noted that “not too many people that look like me” have been able to lead two Fortune 500 companies, also including JCPenney. He also lacked “an elite education from a prestigiou
Tue, January 17, 2023
Carmax v Carvana Tesla Strategy, New Vehicle Inventory Flex, Is Nepotism So Bad?
Shoot us a Text. Tuesday is coming in hot as we discuss the massive motion in used Teslas across the country. We also talk about new car inventory getting back (or close to) “normal” as well as the risks and rewards of nepotism. Yeah, we’ll tell you what it means too. Carmax dropped prices on Teslas by 20% and sells a majority of their Tesla inventory in the last 36 hours Kicked off by a major price decrease on new Teslas last week. Specifically the Model Y which received a 20% price reduction in order to be eligible for Federal Tax incentives According to CarDealershipGuy on Twitter, Meanwhile Carvana pricing remains largely unchanged New vehicle inventory broke the 1.8 million mark in December which is the first time it was that high since May of 2021 Cox put its latest industry wide inventory estimate at 1,803,717, representing a 58-day supply, based on the selling rate from the most recent 30-day period. "New-vehicle supply has risen by almost 500,000 units since the end of September, only three months ago, for a 37% increase. From a year ago, inventory is up 715,000 units or 66%, but the sales pace has improved only 2%," Chesbrough wrote in his monthly report. "If this trend continues — and it seems likely to do so — automakers will be under increased pressure to move the metal with higher incentives." “Is nepotism all that bad?” asks a recent article from retail trade publication, Retail Wire. “The phrase #nepobaby (nepotism baby), steadily trending on social media, calls out and often shames the children of famous actors, sports figures, musicians and other artists whose careers have benefited from their parent’s contacts. In many cases, their talent is questioned amid suspicions their stature is not due to merit.” A Bloomberg article cited in the piece explores the potential benefits of passing a business down generationally As Retail Auto is a huge family industry, we thought we’d talk about the pros and cons a bit Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: <a href='https://www.
Mon, January 16, 2023
Not-so-VinFast, Decentralized Power, $40M Pay Cut
Shoot us a Text. Welcome to a beautiful week in Retail Auto. This morning we’re talking about some less than flattering reviews of the new VF8, a partnership to leverage EV tech to put power back into the grid, as well as a pay cut for the CEO of one of the world's biggest companies. As Vietnamese EV automaker VinFast gears up to begin US Deliveries, the pricing and specs of their first crossover, the VF8, is already being met with a variety of consumer resistance FIrst is the price coming in at $56,700 for a vehicle that has a battery range of only 179 miles from a sizable 82 kw battery To compare Hyundai Ioniq 5 has 266 miles of range and starts just over $42k Other EVs, such as the Kia EV6, Volkswagen ID4, and Ford Mustang Mach-E also have higher range at lower prices Customers also seem to be confused about the battery leasing model which is separate from the vehicle lease and based on miles driven Reviews from CES test drives have been less than flattering with one YouTuber titling their video "I Drive the VinFast VF 8 for the First Time! And I Really Wish I Didn't," as they talk about looks, missing items, the UI, and a bit of a rattle with a 3 out of 10 “livable, driveable” In comparison, the Chevy Bolt costs about half as much and has over 200 miles of range Ford, GM, and…Google are teaming up promote the advancement and adoption of Virtual Power Plants (VPPs) to help take strain off power grids during peak demands and emergencies With permission from customers, the tech pools together 1000s of decentralized energy resources like electric vehicles or electric heaters controlled by smart thermostats. Switch thousands of households' batteries, like those in EVs, from charge to discharge mode or prompting electricity-using devices, such as water heaters, to back off their consumption RMI estimates that by 2030, VPPs could reduce U.S. peak demand by 60 gigawatts, the avg consumption of 50 million households, and by more than 200 GW by 2050 VPPs have already improved grid reliability in such countries as Germany and Australia and in some U.S. states We’ve been hearing a lot about scaling back in these recent days and not to be left out, Apple CEO Tim Cook requested a 40% ish pay cut from th $98M he made in 2022 Accord
Fri, January 13, 2023
Tesla vs Toyota: The Tale of 2 OEMS in Early 2023, A Glass Cage Of No Motion In Denver
Shoot us a Text. It’s Friday, friends. Today we contrast the operational ongoings of Toyota with Tesla in the first few weeks of 2023. We also talk about a potential mess for local Denver residents as a Carvana parking garage sits empty. Tesla has seriously slashed the price on its bestselling Model Y Long range. After a year of, to quote Elon Musk, “embarrassingly high prices”, the company announced a whopping 20% price cut to its most popular Model Y Long Range bringing the price down from over $65k to under 55k. It will now be eligible for the $7500 federal incentive Base Model 3's price was cut $3,000 to $43,990. Starting price for the Model S dropped $10,000 to $94,990 Midsize Model X SUV dropped $11,000 to $109,990. NOTE: the 3 row Model Y is considered an SUV (category has an 80k cap) Stock down 4.5% in response to the news In contrast to that story , Toyota’s Jack Hollis, Toyota’s executive vice president of sales, is talking about all the pent up demand for Toyotas and Lexus…at their normal prices Dealer Steve Gates, 2023 chairman of the Toyota National Dealer Council, and owner of 11 store group Gates Auto Family, which owns 3 Toyota stores and a Lexus store, told Wards Automotive his Toyota and Lexus inventory has been zero or close to it at the end of most months. “It’s become sort of a point of pride.” One of his stores ended with only 7 vehicles on the lot, a few of them presold. Said pre-orders alone could carry them through the first 6 months of 2023 After months of convincing a local zoning board, the city of Denver has a brand new, but fully empty, Carvana vending machine although construction ended months ago Some describe it as ‘a parking garage blocking my mountain view’ Others compare it to a more expensive wacky waving guy or inflatable gorilla Many are worried the property will be incredibly difficult to redevelop if the company goes bankrupt Also: This is some of the best local news reporting and delivery we’ve ever seen “‘The car vending machine is a really novel idea,’ Wayland said. ‘It's kind of like hav
Thu, January 12, 2023
Carvana Gets Suspended and Soars at the Same Time, Porsche Considers Google, Celebrity Ads
Shoot us a Text. It’s Thursday folks and today we’re talking about Carvana’s surrender of their dealer license in Michigan. We also cover Porsche and Google’s talks, a follow up of our EV charger story yesterday, as well as a new AI written celebrity ad. The Carvana location in Michigan will be surrendering it’s dealer license and ineligible to apply for a new one as part of a plea deal with state regulators Originally suspended on Oct 7, which Carvana contested, but lost the appeal The Michigan Department of State had said Carvana violated the Michigan Vehicle Code by: failing to apply for title and registration within 15 days of delivery failing to maintain odometer records improperly issuing temporary registrations failing to have records available for inspection "In a plea deal signed with our department, the Carvana dealership in Novi agreed it had violated the law and to have its dealer license revoked and be barred from reapplying for a new license for three years," Department of State spokesman Jake Rollow wrote in a statement provided to Automotive News. Customers will still be able to buy a vehicle online and take delivery at the location, but will be unable to walk up and talk to or work with a salesperson Carvana shares were up 25% yesterday as they are getting swept in the meme stock category In one of it’s first pieces of intriguing news since going public late last year, Porsche is in talks with Google to fully integrate its operating system into its vehicles according to a source close to the matter Porsche had been hesitant to make the move due to Google asking for too much data to be shared, according to Manager Magazine, which first reported the talks GM, Ford, Nissan, and Renault In a follow up story from yesterday's conversation with Todd Caputo regarding S&P Global Mobilities report on the number of chargers the US will need to sustain EV growth by the year 2030, the largest power grid in the US reported that they saw 25% of their grid fail during the Christmas break PJM Interconnection, a regional power grid that stretches from Illinois to New Jersey services over 65M customer said their grid was on the verge of rolling blackouts due to the cold snap Todd’s point was that the number of chargers doesn’t matter if the grid can’t supply the power reliably ChatGPT, the AI powered chat
Wed, January 11, 2023
Full Stop, How Many EV Chargers Does It Take?, EV Updates, Guest Host Todd Caputo
Shoot us a Text. Welcome to a wild Wednesday as a full ground stop of all flights in the US is upon us. We also answer the question of how many EV chargers to we really need by 2030, as well as a few quick hit updates across the wild world of electrification. All US Flights were grounded this morning as the FAA ordered all fights to be stopped due to a failure of the NOTAM system which alerts pilots and crew to safety advisories and other information for flights Over 21k flights and 2.9M seats US says there is no evidence of a cyberattack How many EV chargers will it take to keep things rolling in the year 2030? That’s the question a new report from S&P Global Mobility tries to answer. There are currently about 160k chargers: 17k Tesla Superchargers, 126k Level 2, 10k level 3 1.9m EVs on the road and 2022 EV sales accounted for 5.4% Estimating a 40% adoption by 2030 the US will need to quadruple the number of chargers by 2025 and more than 8x by 2030, this takes home charging into account 1.2 million Level 2 chargers and 109,000 Level 3 chargers by 2027 BY 2030 28.3 million EVs on US roads, around 2.13 million Level 2 and 172,000 Level 3 public chargers will be required, in addition to home EV chargers While were talking about EVs, here is a quick overview of the wild world of electrification According to a WSJ exclusive , several more Rivian top executives have recently left the company including its vice president overseeing body engineering, Randy Frank who came over from Ford, and its head of supply chain, Steve Gawronski. Both were longer tenured execs Late last year, Patrick Hunt, a senior director in the strategy team, left the company. He had been with them since 2015 Tesla has filed to begin a $775M expansion at its new Austin Gigafactory which cost $5.5B to build. including a cell test lab and a unit named "Cathode", according to the company's filings on the Texas state department of licensing's website The company will host their ‘investor day’ at the TX site on March 1 Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: <a href='https://www.asotu.com/media
Tue, January 10, 2023
Marketing Minute, A Handy EV Tax Credit Tool, Bed Bath and Beyond Goes Meme
Shoot us a Text. Tuesday is upon us as we are in Phoenix to speak at a Marketing NCM 20 Group moderated by David Kain We talk about a new tool taking the mystery out of the new EV tax credits for used car buyers. We also talk about the meme-stock comeback of Bed Bath and Beyond, and of course…a little marketing talk is in order. Re-watch the Year End Extravaganza here: https://www.asotu.com/yee Startup EV analytics company, Recurrent has created a free tool to help EV buyers determine whether or not their desired vehicle is eligible for for one of the new tax credits Users punch in the vin to see if the car they are interested in will qualify for a credit Liz Najman, policy research and communications manager at Recurrent said, “In about 30 seconds, a car shopper will have a good idea if a used EV is likely to receive a tax credit – no tax law background required.” Recurrent estimates that around 23% of the 34,800 used EV listings would qualify Bed Bath and Beyond has a one day meme-stock rally traders exchanged $114 million worth of the Bed, Bath & Beyond's shares, just about matching the company's entire stock market value of $157 million, according to Refinitiv data. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, January 09, 2023
Real talk with Steve Greenfield, Kyle Pushes Back, 2023 Is Full of Opportunity
Shoot us a Text. We’re one full week into the new year, and we got Steve Greenfield of Automotive Ventures joining the show to talk about the predictions he made for 2022 and how things actually turned out. Then, we’ll look ahead to 2023 with 10 bold predictions for the coming year. Re-watch the Year End Extravaganza here: https://www.asotu.com/yee The Automotive Ventures Intel Report for January was released last week, and Steve Greenfield graded his predictions for 2022. #1: Lithia Becomes Largest Dealer In the US; Changes Name to Drive Driveway.com Grade: B- #2: 2022 will be the Year of The Connected Car Grade: A #3: Widespread Commercial Autonomy on the Street Grade: F #4: More Scrutiny of China Grade: A #5: 2022 will be the Year of EV Charging Infrastructure Grade: A #6: Compliance Coming Grade: B #7: Dealers Awarded Points for Vertical Take Off and Landing (VTOL) Grade: F #8: 2022 will be the Year of Corporate Divestitures Grade B #9: Usage-Based Insurance (UBI) Gains Traction Grade B #10: Test for Build-To-Order Grade B The Intel Report also included predictions for 2023 #1: Reynolds and Reynolds is Acquired #2: Tekion Acquired by Salesforce.com #3: Carvana Acquired by Amazon #4: AutoTech Valuations Reset #5: Dealership Valuations Drop #6: Dealerships Focus on Cost Reduction #7: Artificial Intelligence (AI) Goes Mainstream #8: Next Wave of AutoTech: Process Automation #9: Consolidation of Mobility Companies #10: Private Equity (PE) Acquires Public Companies Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, January 06, 2023
Ram’s Revolution, Cheaper Teslas, Delta’s Free Wi-Fi
Shoot us a Text. We’re burning around the corner on Thursday as we review Ram’s entry into the EV Truck market. We also cover dramatic pricing changes for Tesla, as well as Delta’s plan to (finally) give free wi-fi to all passengers. As Ford continues to make as many Lightnings as they can, and GM is getting ready to start making pumping out Silverado EVs, Ram has finally called their shot at CES yesterday with the reveal of their EV pickup, the Revolution 1500 Features include electric motors on front and rear axles, barn door tailgate extender, midgate options that allow you to add jumpseats, 4” more cabin length that the existing model, a steering wheel that retracts into the dash when in autonomous mode, suicide doors removing the b pillar, powered frunk, 360 cameras instead of side mirrors, tons of interior tech and… …the truck will follow its owner around like a loyal dog and will charge itself with a roomba like device once parked in the garage “Brutiful” is the word Ralph Gilles, Stellantis design chief used as he credited designer Mark Trostle with combining the words brutal and beautiful. It their first major move by Tesla since appointing Tom Zhu, to oversee global output and deliveries, Tesla has cut prices for its Model Y and Model 3 cars in China, Japan, South Korea, and Australia in an effort to boost demand for output from its Shanghai factory, which is the company's single largest production hub. A Model 3 costs almost 30% less in China than it is in the US market with a starting price around $33k Last month, Elon Musk said interest rates had impacted the affordability of all types of cars and that Tesla may lower its prices in order to maintain growth in sales volume. The cuts also come days after Beijing ended a subsidy program After the price cut the Model 3 is now the same price as competitor BYD's best-selling Han EV Delta Airlines is leaning into their CX by offering FREE wi-fi to all passengers starting on Feb 1st. About 80% of Delta’s domestic fleet will offer the service next month, but it will become available on more each week, CEO Ed Bastian said during a presentation at the Consumer Electronics Show in Las Vegas on Thursday.” The company has invested over $1B in the program and has partnered with T Mobile They are also installing new entertainment systems that will track passenger preferences across flights and even remember where you were in a movie Other integrations wit
Thu, January 05, 2023
CES Auto Roundup, Amazon Fires and Borrows, Guest Host Todd Caputo
Shoot us a Text. It’s Thursday, folks and we have quite a lot to talk about when it comes to auto related announcements at CES yesterday. We also talk about Amazon’s big layoffs as well as their big borrowing this week. The first day of CES in LasVegas included several concepts and reveals from legacy automakers as well as new partnerships, here’s the rundown: Sony Honda Mobility joint venture reveals brand AFFELA , a vehicle that looks like a mix between a Porsche and Lucid Air and features 45 cameras and sensors on both interior and exterior “Media bar” on front to communicate with others “Best in class entertainment and built on Qualcomm’s Snapdragon chassis Yasuhide Mizuno, CEO of Sony Honda Mobility said "Afeela represents our concept of an interactive relationship, where people feel the sensation of intelligent mobility and where mobility can detect and understand the people and society by utilizing sensing and AI technologies.” Orders begin in 2025 w same year delivery. Built in the US BMW i Vision Dee (Digital Emotional Experience) gives a nod to the hard lines of older BMW’s but adds quite a few curves to make it look sleek at the same time. It pushes the boundaries of integrated tech featuring a full windshield display where the user can slide between an AR experience and full virtual experience. Stephan Durach, BMW Group's senior vice president of its connected company development unit commented: "When integrating technology in the car, we think about the customer experience it creates and the problem we want to solve. We want to deliver the information you need at the right time to give you the perfect experience. That's what people are asking for." VW iD.7 with fully lit exterior is revealed as their intended competitor to the Tesla Model 3. Features standard HUD combined w 15” touchscreen Smart climate control that heats/cools cabin as driver approaches Smart direction of airflow and other heated cooled systems Expected range over 400 miles Steallantis reveals their version of the “cockpit of the future” noting that Chrysler will be their first brand to integrate the new technology Amazon made two announcements this week: one la
Wed, January 04, 2023
Chips w/ A Side of Auto, Under Armor Embraces Hospitality, Shopify Cans Meetings
Shoot us a Text. Welcome to Wednesday as we talk about some new Automotive partnerships being announced at CES. We also talk about a surprise new CEO for Under Armor and how it applies to Auto. We also talk about a bold move from Shopify to stop wasting time. Re-watch the Year End Extravaganza here: https://www.asotu.com/yee Show Notes with links: As day one of CES heats up in LasVegas, gaming/chip maker/AI company Nvidia announced several partnerships as it deepens its connection with the Automotive Industry Mercedes-Benz is using Nvidia's Omniverse platform to create a digital twin of its assembly plant in Rastatt, Germany, allowing the company to plan production changes and test them in a virtual environment before reorganizing the physical plant. Foxconn will use Nvidia's technology in developing its own advanced vehicles and to supply automakers with electronic control units based on Nvidia's chips and sensors for highly automated driving. Hyundai Motor Group, Polestar and BYD are planning to offer Nvidia's GeForce NOW cloud gaming service in vehicles. No specific models have been identified yet for in-car gaming, but the idea is to help entertain not only rear-seat passengers, but drivers who park to charge an electric vehicle, said Danny Shapiro, Nvidia's vice president for automotive. Surprising many in the athletic wear industry, Under Armor has named current president of Marriott International, Stephanie Linnartz, as its new CEO Marriott has $20B in revenue vs the 5.9B of UA Exec Chairman Mr. Plank told CNBC UA is seeking to be a bigger player in fashion and lifestyle apparel, areas where Nike and Adidas make a significant amount of their sales. They have recently dropped out of the top 10 most popular brands for teens One commenter noted "If the new CEO brings hospitality’s hyperfocus on the customer, then it’s going to be a win for Under Armour." Linnartz has also been on Home Depot’s board since 2018 but doesn’t have direct retail or sports industry experience Ecommerce platform Shopify is kicking off the new year by kicking most meetings to the curb . the company has implemented a "calendar purge", which aims to cut down on the number of meetings held All recurring meetings with more than
Tue, January 03, 2023
New Tesla US Chief, No ICE For Hyundai In Norway, Volvo Buys Even More Safety
Shoot us a Text. It’s Tuesday already as Automotive welcomes everyone else back to work. Today we’re talking about Tesla’s new US Chief. We’re also covering the end of ICE sales for Hyunday in Norway, as well as the autonomous tech company now exclusively owned by Volvo In the latest news from Tesla headquarters China Chief Tom Zhu has been promoted to oversee the electric car maker's US Assembly plants as well as sales operations in the US, Europe, and North America making him the highest-profile executive at Tesla, second only to CEO Elon Musk. Zhu will also continue to serve as Tesla's most senior executive for sales in the rest of Asia Zhu was hired by Tesla last year to troubleshoot production issues in the US, and under his leadership, the Shanghai plant rebounded strongly from COVID lockdowns in China. Co-workers have said Zhu was among the first batch of employees sleeping in the factory as they sought to keep it running Known as a no-fuss manager w/ a buzz cut, favors Tesla-branded fleece jackets and has lived in a government-subsidized apartment that is a 10-minute drive from the Shanghai Gigafactory. Note Tesla missed its annual sales target in 2022 although they did produce 1.31M vehicles, 40% more than 2021 As of yesterday, Hyundai has completely stopped selling ICE vehicles in the country of Norway Norway’s goal is to end ICE sales by 2025 with most vehicles currently having a plug and only a few percent being ICE 2020 about 55% BEV, 2021 about 65%, 2022 estimated close to 80% Thomas Rosvold, Managing Director, Hyundai Motor Norway - “We have great faith in our model portfolio, and now that we have launched the all-new IONIQ 6, the time has come to sell only all-electric cars in the Norwegian market.“ Norway is the 4th richest countries in the world, has population of 5.4M (greater Philadelphia) an is about the same size as New Mexico (pop 2.12 M) Get 90% of their electricity from hydro sources Have to speak Norwegian if you want to immigrate there …speaking of nordic countries After buying out the last 13.5% of shares from ECARX, Volvo is now the proud owner of Zenseact , an autonomous driving software develo
Mon, January 02, 2023
Building is Booming, New NADA Chair, Auto Ventures Predictions, Text to shop
Shoot us a Text. It’s ‘go time’ for 2023 as we talk about the all-time boom in factory builds and say hello to the new NADA Chair. We also review the Automotive Ventures top 10 predictions of 2022 and 2023, as well as talk about a newly launched text-to-shop feature from Walmart. Manufacturing Boom The USA industry has seen the biggest boom in auto-factory building in decades and is being driven by car makers' shift towards EVs, with $70 billion earmarked for such projects. Two-thirds of this investment is going towards sites in the US South (GA, TN, KY) moving away from the Great Lakes region Avg of 2016-2020 was $5.52B The global auto industry plans to spend a total of $526 billion on EVs by 2026. Geoffrey Pohanka, 65, who currently serves as NADA vice chairman, will succeed Mike Alford to be the 2023 NADA Chair . Pohanka is a third-generation dealer who serves as chairman of the Pohanka Automotive Group in Capitol Heights, Md. “As someone who grew up in the car business and with my family’s involvement with NADA for generations, I am honored to take the reins as the next NADA chairman,” said Pohanka. “The auto industry is a rewarding and exciting business, and I’m fortunate to be a part of it. NADA has an amazing board and an amazing staff. Together, we can create a stronger environment for the industry, to help create a vibrant economy and stronger communities.” Auto Ventures top 10 predictions 2022 and 2023 This years list includes: Tekion acquired by Salesforce Carvana acquired by Amazon Reset in both AutoTech and Dealer valuations Major focus on cost reduction Bonus: It will be the year of the EV After a year of beta testing, Walmart is launching a feature called "Text to Shop" , which allows customers to add items to their online shopping basket via text message. Must be linked to the Walmart app Customers can switch items, review their cart, check out and schedule pickups and deliveries using text or the Walmart app WM applied learnings from a $50-per-month subscription service Walmart launched in 2018, Jetblack, a Text to Shop, that enabled shoppers to text message personal shoppers. Dave
Fri, December 30, 2022
Final Morning Show of 2022, Top 5 All Gas No Brake Moments, Tax Credit Updates, Hiring Getting Easier
Shoot us a Text. Rockin into the new year with our last show of this year. We cover some important EV tax credit updates, talk about hiring getting easier, and we give our top 5 ‘all gas no brake’ moments of 2022. IRA Tax Credits Starting Jan 1, there will be a first-ever EV tax credit for commercial vehicles from $7500-40k letting small and large businesses take advantage of the incentive Vehicle weight determines credit level under 14k and over 14k lbs Can cover up to 30% of the cost of the vehicle Travis Katz, CEO of General Motors' BrightDrop, said "We're already hearing from customers that they're excited about this," which counts FedEx, Walmart and DHL Express Canada as customers. The $7500 consumer incentive can be used on a lease according to new guidance from the US treasury According to a survey conducted by Vistage Worldwide for The Wall Street Journal in December a higher percentage of small business owners reported that it was easier to hire workers. 25% of the more than 650 entrepreneurs surveyed said it was easier to fill job openings now than at the start of 2022, an increase from 18% in November. Some small business owners attributed the shift to steps such as raising pay, adding apprenticeship programs, and rewriting job ads, while others reported an increase in applicants as competitors pulled back on hiring or began layoffs Also cited was a slow down in work making workloads more manageable and quality of the overall job better Top 5 All Gas, No Brake Moments Farley Musk Scout EV Tax Credit Laws California Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, December 29, 2022
GUEST Matt Lasher: Dealers To the Rescue, Powered By Pickups, Cox’s Crystal Ball
Shoot us a Text. We’re on the final approach for 2022 and talking about how the auto industry has helped communities weather the recent (literal) storms. We also review Cox’s top 10 prediction list for 2023 Let’s talk about Buffalo NY for a moment . In case you missed it, it's been cold outside. Like, really, really cold. A 27-hour power outage at the Vive Shelter in Buffalo, NY, was resolved by our friends at West Herr Auto Group and a payloader they found. They used the sizable tractor-type machine and succeeded where pickups and other 4-wheel drives failed. They dragged generators and fuel for 4 hours through 15 miles of blizzard to get power back to the shelter. By Monday, main power was restored for the shelter's 150 residents and additional families who found refuge in the building during the worst of the storm. A Ford F-150 Lightning electric pickup truck owner was able to power his home in Ontario, Canada for 44 hours during a winter storm that left thousands without electricity…and still had 65% of battery left over RapsFanLJ posted a picture of his EV pickup on Reddit, saying, “this baby saved us.” as he used the Pro Power Onboard system to power lights, a refrigerator, wifi, TV, and other items for almost 2 days until power was restored The truck has 11 outlets and one 240v port in the back Kumar Galhotra, president of Ford Blue, explains: We’re not here to make an electric truck for the few – Ford is committed to building one that solves real problems for real people. provides full-home power for up to three days or as long as ten days,” depending on energy usage. COX Automotives Top 10 predictions for 2023 are out 1. A slow-growing economy will place pressure on the automotive market. 2. New-vehicle inventory levels will continue to increase. 3. Total retail vehicle sales will fall in 2023 as new-vehicle sales grow and used sales decline. 4. Sales of electric vehicles in the U.S. will surpass 1 million units for the first time. 5. Used-vehicle values will see above-normal depreciation for a second straight year. 6. Vehicle affordability will be the greatest challenge facing vehicle buyers. 7. All-cash deals will increase to lev
Wed, December 28, 2022
Used Teslas Lose Their Charge, EVs Ditch Brand Loyalty Rules, Most Popular Xmas Gifts
Shoot us a Text. It’s Wednesday on that weird holiday week as we talk about the continuing used car correction being led by Tesla. We also talk about what EVs are doing to the brand loyalty landscape, as well as reviewing the list of most popular Christmas gifts of 2022. The general used car market is seeing values decline, but not as quickly as the used Tesla market which is down 17% in Nov compared to 4% according to Edmunds Data. In August 33%+ of all used Teslas on the market were 2022 models being flipped for profits of $12k plus (other brands were only at 5%). A combo of rising gasoline prices, an increase in Tesla's output, and the growth of electric vehicle competition, are contributing to the pricing pressure Tesla recently doubled its discount on new vehicles to $7500 to support new sales Greg Profitt, a software engineer, purchased a new Model Y last year for $49,000 and was able to resell it three months later for $12,000 more. He then decided to order a new one, but ultimately ended up purchasing a used Tesla at a discounted price instead. Carmax is also indicating what some are calling an used car recession, reporting an 86% decline in Q3 profit EV buyers are more likely to switch brands than traditional car buyers, according to research from Edmunds. 80% of people who bought Kia's EV6 traded in something other than a Kia, compared with 61% for all its models. More than two-thirds of Ford's Mustang Mach-E electric sport-utility buyers had non-Ford trade-ins, compared with Ford's 42% brand-wide avg Rivian said purchasers of its trucks and SUVs are about as likely to own a $30,000 Subaru Outback as they are a $100,000 Porsche 911 Limited availability is leading to buyers willingness to look elsewhere “We’re seeing all kinds of trade-ins,” said Beau Boeckmann, president of Los Angeles-based Galpin Motors Inc., which owns one of the biggest Ford dealerships in the U.S. “Everything from BMWs to commuter cars, even some trucks.” Chevy Bolt owner, Jason Kint recently had trouble finding his EV of choice to replace his 10 yr old bolt. He looked at the VW iD4, Kia EV6, and Hyundai Ioniq 5 landing on the Ioniq and saying he can see himself sticking with the brand Most popular Christmas Gifts of 2022 according to google Tech: Beats headphones and Nintendo Switch Fitness: Adj
Tue, December 27, 2022
How Retail Did, Credit Unions Crushing Auto, Bowls Full of Chips In Time for CES
Shoot us a Text. The ASOTU team is saddled up and ready to ride as we talk about the retail scorecard from Christmas. We also get into auto loan rates, a chip surplus, and all the buzz around this week’s CES in Vegas. According to Mastercard data, Retail sales increased by 7.6% during the holiday season from November 1 to Christmas Eve Clothing sales rose by 4.4%, while in-store sales increased by 6.8% and online sales increased by 10.6%. Electronic and jewelry sales fell by 5.3% and 5.4%, respectively. The 7.6% increase in sales marked a slower pace than the 8.5% increase in 2021, but was higher than MasterCard's expected 7.1% rate. Restaurant spending increased by 15.1% over the same time period in 2021 "This holiday retail season looked different than years past," Steve Sadove, a senior adviser at Mastercard and former CEO of Saks Incorporated, said in a statement. "Retailers discounted heavily but consumers diversified their holiday spending to accommodate rising prices and an appetite for experiences and festive gatherings post-pandemic." Credit unions are crushing conventional auto lenders by almost 2.5% points on average for used cars and over 1.5% points on new according to Q3 data (8.36 to 5.94% /used and 4.43%, versus banks’ 6.06% / new) Decrease in mortgage lending have made them more aggressive on auto Now occupy 28% of auto lending market up from 20% last year (Experian) Tend to hold the notes rather than sell as bonds which could lead to trouble if defaults see an increase next year Do you see all those stocked electronics? One reason is that chip inventories are swelling as Semiconductor companies are reducing production plans due to weak demand for electronic gadgets. Highest levels in over a decade “Well above our target level,” said Sanjay Mehrotra, said chief executive of memory maker Micron Technology Inc., on Thursday as they missed Wall Street earnings projections, gave a subdued outlook and said it would cut about 10% of its workforce. Chipmakers expect the situation to normalize around the middle of next year depending on the next upturn CES in Las Vegas starts on Thursday and will be heavily focused on mobility which includes lots of EV’s Organizers a
Fri, December 23, 2022
A Special Vibe as Christmas is Coming
Shoot us a Text. We are prepping for the holidays and resting up over the weekend as we get ready for the biggest sales week of the year! Today we offer a little note for our ASOTU community, send you into the weekend, and look a bit forward into our plans for 2023. We will see you again Tuesday as our families are taking time off to celebrate on Monday! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, December 22, 2022
Some Quick Jabs and Predicting the Future...the Year is 2030!
Shoot us a Text. It's throwback Thursday! Even though it was only two days ago, we are throwing it back to YEE 2022's opening monologue! Enjoy! Watch the full show: https://youtu.be/-um6U9StLnk Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, December 21, 2022
Wrapping up YEE, US Postal Going EV, & Twitter May Soon Have New Boss
Shoot us a Text. We have only a few short days until Christmas and then the biggest week of the year is upon us! Today we will recap all things Year End Extravaganza, check out a new deal the US Postal Service has made, and hear from Elon…again. Re-watch the Year End Extravaganza here: https://www.asotu.com/yee By the year 2026, the US Postal service has committed to buying only electric trucks Now through 2026, 75% will be electric 66,000 battery electric delivery vehicles from defense contractor Oshkosh as part of its 106,000 vehicle acquisition plan for deliveries between now and 2028. An additional 21k commercial ‘off the shelf’ vehicles will also be acquired The current Grumman LLV doesn’t have a/c, airbags, and only gets 8.2 MPG $3B in IRAct Funding Approx $1.3B for vehicles and $1.7B for infrastructure It will take ‘someone foolish’ to do the job, but Musk is preparing to step down as the Twitter boss There have been calls for Musk to step down from Twitter, with some investors and analysts expressing concerns that his involvement with the platform may be distracting him from running Tesla, the electric vehicle company he also runs. “Musk projected that Twitter's cash flow will break even in 2023, a Bloomberg reporter tweeted on Wednesday, citing comments made in a Twitter Spaces session.” “I will resign as CEO as soon as I find someone foolish enough to take the job! After that, I will just run the software & servers teams," Musk wrote on Twitter. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, December 20, 2022
The Day Has Finally Arrived As Where Live On Set In Nashville
Shoot us a Text. We’re on the set where the 2022 Year End Extravaganza is about to go down this afternoon and we’re on set with one of our event co-hosts, Michael Cirillo as we talk about what’s coming in 2023 and how to stay connected to those who will help you keep the wheel steady in 2023. Check out the Year End Extravaganza here: https://www.asotu.com/yee Learn More about #ineedatruecar: https://www.truecar.com/ineedatruecar/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, December 19, 2022
Self-Fired By A Twitter Poll, Robos Racking Up Rides, The Best Final Ever?
Shoot us a Text. Welcome to the week before Christmas, where Amazon shipping is everyone’s best friend! Today we welcome the ASOTU crew to Nashville, but we have to talk about some news. Elon may be stepping down as head honcho at Twitter, driverless cars are getting more popular in China, and we recap one of the greatest World Cup finals of all time. Check out the Year End Extravaganza here: https://www.asotu.com/yee Learn More about #ineedatruecar: https://www.truecar.com/ineedatruecar/ At least 58% of Elon Musk’s Twitter tribe want him to step down from his current role as CEO according to the poll he, himself posted yesterday with the caption, “Should I step down as head of Twitter? I will abide by the results of this poll.” Over 17.5 M vote split 58/42 Tesla shares are up 5% on the news although are at a 52 week low and half of what they were a year ago This move could have big implications for Tesla as many large investors and strategists say the company has effectively been operating without a working CEO since Musk finalized the deal with Twitter and took over as active CEO Baidu Inc.’s Apollo program, which allows customers to hail and ride a fully autonomous robotaxi , has racked up more than 1.4 million public journeys Rides on the promotional program start at about 65 cents for a 10 mile drive. Currently vehicles with steering wheels are being used in combination with a LIDAR technology bolted on, giving drivers a somewhat unnerving feeling as the wheel moves. The passenger also sees a rendering of the camera views from the car with animated pedestrians and road elements Some saying the World Cup final yesterday was the best of the last century 3-3 Final saw Mbappe and Messi battling it out through extra time when Argentina won on penalties Messi, one of the top players of all time, cements his legacy by leading Argentina to the World Cup win After much controversy leading up to the cup, Qatar has proven to be a powerful holding ground for this year’s competition Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at ht
Fri, December 16, 2022
Pricey Lightning, Honda Goes Over The Air, & Metaverse Gets Another Go
Shoot us a Text. The landing gear on YEE presented by Orbee is coming down this Friday as the pieces move in place for our annual end-of-year livestream event. But first some news about Ford’s F150 Lighting price hike, Honda’s announcement of their first car running on a Google OS, and some automakers are pressing into the metaverse. Check out the Year End Extravaganza here: https://www.asotu.com/yee Learn More about #ineedatruecar: https://www.truecar.com/ineedatruecar/ If you were once excited about that $41k base F150 Lighting when the truck was originally announced, you’re in for more pain as Ford announced this week the vehicles 3rd price hike in several months. According to the company’s website, the price has increase another 9% now ringing in at $55,974 Rising supply cost continue to push several automakers to make price adjustments Ford seems to be selling every Lighting they can make, however, and just this week announced the addition of a third shift at the assembly plant near Detroit that produces the Lighting. Honda announced this week that their 2023 Accord Touring model will be their first integrating a Google operating system built in In addition to the standard controls of the OS, this will allow Honda to step into over the air updating of the vehicles This announcement comes amidst an OS arms race including Amazon Alexa and Apple Senator Elizabeth Warren has called for an investigation into Big Tech's expansion into the automotive industry, expressing concern that companies like Google may stifle competition through bundled services and a lack of support for third-party apps. Nvidia predicts that many automotive companies will begin integrating their operations with the metaverse in 2023, using it to monitor production processes and improve design processes through the use of "digital twins" in factories and virtual collaboration space. Design processes will also benefit from virtual collaboration spaces in the metaverse. The metaverse can also be used to enhance customer experiences with full-fidelity real-time car configurators, 3D simulations, augmented reality demonstrations, and virtual test dri
Thu, December 15, 2022
Quick Shot EV Updates, Nuclear Fusion Working, Tiktok As A News Source
Shoot us a Text. Thursday is full of surprises as we update you on several EV ongoings. We also talk about the long awaited success of nuclear fusion (yep), as well as Tiktok being a growing source of news…but not from traditional sources. Weekly EV update: Toyota is set to announce detailed changes to its electric vehicle (EV) strategy to key suppliers early next year, as it seeks to narrow the gap with Tesla and BYD on price and performance Involves possible plans for the succession of its three year old e-TNGA platform which was a compromise to manufacturer EVs on the same assembly lines as gasoline powered vehicles e-TNGA was developed on the assumption of making 3.5M EVs per year which has now more than tripled Mazda has announced that its upcoming 2024 Mazda CX-90 will be its first plug-in hybrid electric vehicle in the US The CX-90 is thought to be based on the European-produced CX-60, which is propelled by an inline-four engine combined with an electric motor The CX-60 can drive 35 miles on electric only and would get a combined mpg of 157 miles Rivian and Mercedes-Benz have put their plans to co-develop multiple new electric delivery vans on pause Rivian is concerned about spending large amounts of money on an expensive new vehicle development project amid a slowing economy Mercedes-Benz will continue with its plans to scale up electric vehicle production at its manufacturing site in Poland. Rivian stock bumped 10% on the original agreement and subsequently lost it with this new announcement With all this talk about clean energy, nuclear fusion was feeling left out so it announced a huge breakthrough this week: net energy gain Lawrence Livermore National Laboratory announced a breakthrough in controlled-fusion energy. Fusion-energy companies have raised over $5 billion in private funding, roughly double the amount from a year ago. Commercialization of the technology is still years, if not decades, away. Move over mainstream media, a new report by Reuters shows that young users are increasing choosing Tiktok as their go to news source<
Wed, December 14, 2022
IIHS Gets Picky, Private Label Products Surging, and Rate Hikes Slowing
Shoot us a Text. Rolling into Wednesday we welcome special guest Ben Hadley to help us take a tour around the news. We are looking at the impact the new IIHS guidelines are having on CUVs, new consumer demand for private label grocery items, and the changes in the economy that are leading to slower rate hikes. Check out the Year End Extravaganza here: https://www.asotu.com/yee Learn More about #ineedatruecar: https://www.truecar.com/ineedatruecar/ The Insurance Institute for Highway Safety (IIHS) has rated only two out of 15 vehicles in the small crossover category as "good" in the first frontal crash test in the US to include a rear dummy. The 2022-23 Ford Escape and the 2021-23 Volvo XC40 were the only vehicles to earn a “good” rating The test adds a dummy representing a small woman or 12-year-old child positioned in the second row behind the driver, and uses new metrics focusing on the injuries most frequently seen in rear-seat passengers. All 15 vehicles earned a "good" rating in the original crash test, launched in 1995, where a vehicle travels at 40 mph toward a barrier, and a dummy representing an average-size man is positioned in the driver's seat. Supermarkets are doubling down on their in-house product lines as sales of private label products surge due to consumers looking for ways to economize. Supermarkets such as Kroger and Carrefour are investing in expanding their in-house offerings across more price points and product categories. Pushing lower-priced products could enable grocers to win the loyalty of consumers by casting themselves as the shoppers' ally during difficult times. The US central bank's officials have signaled that they will raise interest rates by half a percentage point at their two-day meeting this week, scaling back from four straight three-quarters-of-a-percentage-point increases. Along with the latest policy statement, officials will issue new projections showing just how close the "endpoint" may be. The release of market-friendly inflation data for November on Tuesday triggered bets across stock and bond markets. “”The Consumer Price Index (CPI) continues to rise fast, increasing in November
Tue, December 13, 2022
Inventory Is…UP!, Mobile Service Coming In Hot, Outta’ Paper, ChatGPT
Shoot us a Text. Welcome to Tuesday as we talk about some good news with new car inventory, mobile service in the rise, the lack of the paper to print titles on, and give you the scoop on this ChatGPT thing. Cox Automotive data shows new inventory has increased by another 150K vehicles as presented in their Monthly Industry Update , produced by the Cox Automotive Economic and Industry Insights team A stream of increases from June to now has 2022 sitting 78% higher than 2021 at the same point, although inventory is still significantly below that of 2019/2020. November ended with 1.61M vehicles in dealer inventory, with some variation between brands based on day’s supply strategies. Let’s remember - A return to 2019 inventory levels does not equal a return to 2019 dealership strategies. AutoNation, the largest US new-vehicle retailer, has agreed to acquire Los Angeles based RepairSmith for $190m to expand its on site service offering for $190M Technicians visit customers' homes or workplaces to service individual cars, as well as dealerships and fleets The acquisition is part of AutoNation's ongoing expansion into the after-sales service market RepairSmith's investors include Mercedes-Benz and Porsche's venture capital arm, Porsche Ventures. As if we needed one more inconvenience at the Dealership, the specialized paper used to print vehicle titles has become scarce , causing delays and confusion for car dealers and owners. An increase in cardboard production is partly to blame Some states are prioritizing titles that are requiring immediate attention while Dealers are using power of attorney agreements to close deals Digital titles anyone? What’s the deal with this ‘ChatGPT’ thing? ChatGPT is a large language model trained by OpenAI that can generate human-like text on a wide range of topics based on the input provided by a user.</li
Mon, December 12, 2022
What To Do w/ Three Weeks Left, Rental’s Role in EV, Why These Christmas Colors?
Shoot us a Text. Welcome to Monday, Troublemakers. As we start the three week countdown to 2023, we’re talking about what Dealers across the country are doing to prepare. We also talk about rental fleets of EV’s, as well as the reason Coke is so closely associated with the Christmas holiday. With three weeks left in the year, what are Dealers around the country focusing on? Used car prices down almost 16% from January and falling. Talked about Top 10 Ways To Eliminate Aged Inventory on Clubhouse with appraising properly, pricing based on market day supply, and speed to retail The slow return of warranty work to service and parts Note: Dealer’s increased focus on customer pay labor and parts during warranty work shortage. What has it helped build? More EV commitment from rental companies in the future will be a force in overall EV adoption 1 on 10 light vehicles in the US are purchased by rental companies Hertz alone has committed to 375k EVs over the next 5 years. 175k GM, 100k Tesla, 65k Polestar. ¼ of fleet will be EV by 2024 With limited supply, renting an EV is a viable option for an extended test drive Also investing heavily in consumer education and charging network in partnership w BP Have you ever considered why Christmas colors are what they are? Well, it turns out they are the result of centuries of tradition …and Coca-cola Origins trace back many centuries ancient Celtic peoples revered red- and green-colored holly plants for being evergreen, and they believed holly was meant to keep the earth beautiful during the dead of winter. Availability of pigments in Medieval Churches In America, Coke’s marketing cemented the cultural colors with some of its most well known ads ever. Then polar bears…Christmas trucks Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, December 09, 2022
Charging On Across the US, Experience To The Front, Restraining Order Incoming?
Shoot us a Text. It’s a fine Friday across the Automotive Industry as we talk about Dealers banding together to become a formidable charging network. We also talk about stand alone stores bringing experience to the forefront, as well as a leaked email seething with desperation from one startup EV maker. GM and Ford Dealers are doing the work to build a formidable charging infrastructure across the US as Ford and GM take the front seat The much contested and debated Ford EV Dealer certification requirements will result in 1920 EV-ready dealerships. This will be the most extensive network in the US by number of locations and will place the brand in the mix with Tesla, EVgo, and Electrify America. GM is also working with its dealers to provide a robust charging network. Nearly 1,000 dealers have enrolled in the level 2 charger program. The plan involves bringing up to 40K charging stations to rural America. If this happens, it will double the amount of these types of chargers in the US. Level 2 chargers are slower than Level 3 chargers, but still pack a punch and can fully charge many vehicles in a couple of hours. Perfect for parks, sports venues, and shopping malls Experience is king as several new, stand alone dealerships are opened for Porsche and Jeep which strive to provide dedicated spaces to provide convenience, a robust shopping experience, and even walkability Porsche Brooklyn highlights a new, Porsche Urban Store format is a street-level gallery with intentionally timeless styling in the heart of this creative and professional neighborhood. The 10k square foot showroom features a high-end cafe, a ‘fitting room’ for customizing your new Porsche, a Porsche Lifestyle Store and a dedicated New Car Delivery area. The same building houses the Brooklyn Nets training facility There is a 16k sq/ft service and parts facility one block away Christian Meunier, Jeep brand CEO; Jay Feldman, Feldman Automotive CEO, Jim Morrison, head of Jeep brand, North America gathered for a photo in the new stand-alone Feldman Jeep of Clarkson “This new, free-standing Jeep store captures the heritage and the imagination of the Jeep brand and
Thu, December 08, 2022
Dealer Sentiment Shift, Mixed Emotions On Carvana, Apple Encryption, and a Lego EV
Shoot us a Text. Thursday is all the rage as we talk about the results of the Q3 Cox Dealer Sentiment Survey. We also talk about Carvana’s current spot, Apple putting data recovery in user’s hands, and the Lego indicator we’ve all been waiting for. The quarterly Cox Automotive dealer sentiment survey of 1000 franchised and independent dealers communicates that profits remain strong however concerns are rising over interest rates and the overall economy Since mid 2021, lack of inventory had been the top concern The survey focuses on what Dealers think will be the case 3 months from now based on current conditions Affordability remains a top issue New vehicle prices holding, pressure to incentivize is rising, the need for sales responsiveness is growing Earl Stewart from EST is expanding training sessions for sales staff, pushing them to respond to customers quickly and ranking them in comparison to their peers. “I’m disturbed because my salespeople have become order takers” Carvana stock price is reeling after a pact made from lead investment firms The investment groups are now forced to negotiate with Carvana for debt restructuring together for the next 3 months instead of separately “In the case of Carvana, its bonds are all unsecured. But the company could borrow against assets like real estate, effectively putting existing creditors further back in line to collect money if the company were to file for bankruptcy.” One concern is a looming liquidation of inventory, potentially driving a lower wholesale market, which is already down 14.6% , for used vehicles than expected over the next 3-6 months End to end encryption is coming to Apple’s iCloud backup for their device suite. Apple says it will be available to the public in the US by the end of 2022 and will come to the rest of the world in early 2023. Recovering any data will now be solely the responsibility of the user, similar to backup codes used in crypto Lego <a href='https://www.lego.com/en-us/product/electric-sports-car-60383?utm_source=ASOTU&utm_
Wed, December 07, 2022
Apple Battles Autonomy, Side Hustles the New Norm, and Culture Produces Results
Shoot us a Text. We are in dealerships across the east this week, but that won’t slow down the news drip. We are chatting up how it looks like Apple is pulling back on their autonomous dreams, Americans are leaning into side hustles, and how a coach got a team culture right enough to dismantle expectations. Not so fast on that fully autonomous Apple car . According to sources at Bloomberg , the company will be pushing the planned release of their first vehicle from 2025 to 2026 and scaling back its Level 5 autonomy ambitions for a system that still requires a good old steering wheel and pedals and will only operate autonomously on highways. Sound familiar? Still designing a system that allows operator to play games, browse social media, etc Processor - named Denali - after the tallest peak in North America is 4x more powerful than Apple's current highest end chip and Will use radar, LiDAR, and cameras to navigate Apple is also planning on offering insurance for owners More Americans are taking on side hustles to deal with rising costs In November, the economy added 263,000 jobs, the Bureau of Labor Statistics said on Friday, topping economists’ average forecast of 200,000, according to Dow Jones. Due to inflation, rising household debt, and lower savings, over 60% of Americans are either already or considering picking up a second source of income. “”Gig workers still mainly gravitate toward ride-hailing services driving, delivering groceries, and renting out living and storage space, which usually don’t require a long resume or experience, Neighbors.com said.” A soccer team that was not supposed to even make it out of the knockout round is now on to the quarterfinals , thanks to an inspiring coach dubbed Mr. Avocado Head. Morocco is the first Arab nation to ever make the quarterfinals after stunning soccer powerhouse Spain in penalty kicks late on Tuesday The impressive part is the culture within the team Walid Regragui has created Those close to the team feel the team understands how they are playing for their whole country, despite less than half being nat
Tue, December 06, 2022
Farley Is Pleased, Best Buy’s Warehouse Studio Service, Wazers Rejoice
Shoot us a Text. It’s an energetic Tuesday in Retail Automotive as we cover Ford CEO Jim Farley’s recent comments as the EV certification deadline closes. We also cover Best Buy’s move to meet consumers where they are at, as well as an in-car integration with the popular mapping app Waze Ford CEO, Jim Farley seems pleased that about two thirds of US Ford Dealers have opted in to the new EV certification plan that will allow enrolled dealers to continue to sell EVs beyond 2023 1920 Dealers have signed on with 85% choosing the top, Certified Elite track It’s not easy going as NY, Illinois, Connecticut and others have filed lawsuits, protests the Motor Vehicle Board, and involved US Senators noting potential violations of franchise laws to which Ford disagrees with Farley maintained that Tesla started this bet against the dealer model and he intends to compete to keep it: “The future of the franchise system hangs in the balance here,” Farley said. “The No. 1 EV player in the U.S. bet against the dealers. We wanted to make the opposite choice.” Farley said he stands by the rollout of the program stating, “There’s always a better way, But I don’t think we made, really, any big mistakes Did you know Best Buy has a 40,000 sq/ft warehouse next to its HQ where 120 employees are on-set in a studio like environment ready to give virtual human-to-human service on ten categories of products from cameras to treadmills? Served over 250k people since 2021 in what the company calls ‘digital clienteling’ Customer satisfaction has increased 20% Customers initiate connections with virtual store experts through the website or app and can interact via text, chat, phone calls, live-streaming or screen sharing. 200 additional remote team members from across the enterprise available to provide expertise for the virtual store Best Buy’s online sales this fiscal year are on track to generate five times the digital sales pre-pandemic Wazers around the world rejoice as Renault becomes first car manufacturer to package the popular map system Waze directly into vehicle’s multimedia system without the need for a smartphone “Having Waze’s real-time navigation, routing and alerts built into the display of Renault’s vehicles, makes for a simplified and seamless driving experience,” said Aron Di Castro, director of marketing and partnerships at Waze. This is made possible by the vehicles’ use of the Android Automotive OS also
Mon, December 05, 2022
Next Gen Auto Tech School, Liza’s Tips For Pricing Aged Inventory, Swiss Ban On EV Driving?
Shoot us a Text. Welcome to another great week in Retail Auto as we talk about the newest auto tech school on the west coast and why it’s significant. We also share Liza Borches’ tips and strategies for moving aged inventory, as well as the truth on a rumored Swiss EV ban. An new, $22.3M advanced automotive tech school in a northern LA auburn is now open at Pierce college, thanks to a $3.5B California bond measure to invest in facilities that better prepare students for jobs New requirements for being an Auto Tech are rapidly changing and now require a growing number of computer, technology, and programming skills Alex Villalta, associate professor of automotive service technology and a graduate of the Pierce program, says “The students are coming in with laptops instead of toolboxes.” “Northridge Toyota in California hires Pierce graduates,” said shop manager Edward Lujan, who is in charge of everything from recruiting service technicians to ensuring they pass all the certification exams needed to advance. He has been in the service industry for 35 years, all of them with Toyota and Lexus. The California New Car Dealers Association awarded $413,000 over the last 5 years to 334 California students to help cover training costs We got into the details of pricing aged inventory with CMA owner Liza Borches on Friday’s All Things Used Cars room on Clubhouse with David Long. Here are key takeaways from Liza: Expect diversity. Every store, every team, and every market is going to require a nuanced strategy. However, no matter the nuances, some fundamentals exist. The right end user exists for every car. Moving inventory between your group's stores or out of your network could be vital to selling inventory while retaining more value. Repricing with wisdom. Before changing the price, call every relevant lead to gauge interest. You may be able to sell it with a smaller price drop. "You were right. We have adjusted the price and wanted to give you dibs." 30-day supply. Buying and selling within the same market will allow for greater control (and profits) as the market shifts. Posts about Switzerland proposing a ban on using EV’s to stave off an energy shortage gained some steam on LinkedIn and elsewhere, but it’s not as seismic as it seems. As it turns out, there really needs to be an emergency The <a href='https://www.electrive.com/2022/12/0
Fri, December 02, 2022
FTC Won’t Let Ford Be, Tesla’s ‘adjustment’, Kid’s Don’t Want Cash
Shoot us a Text. It’s time for a Friday as we talk about one Senator's plan to sic the FTC on Ford. We also talk about Tesla incentivising customers to take delivery now, as well as the growing trend of kids passing on cash for meta-stuff. US Senator from Connecticut, Richard Blumenthal shared his plan to petition the FTC to launch an investigation into Ford’s new EV certification program under suspicion that it is violating US franchise laws In a press conference he and other Connecticut legislators, along with the Connecticut Automotive Retailers Association asked for to once again delay their Dec 2nd deadline for opting in or out of the program CARA co-chair Jeff Aiosa told Automotive News, "Dealers look at their sales and service agreements with the manufacturer as a partnership to represent all the brand's products as long as they're in good standing,"To unilaterally change that agreement for a program is patently unfair." Ford responded by saying there would be no extension: "The voluntary program empowers our dealers on when and how to enroll and we understand that some dealers operating in markets with limited EV penetration may chose not to enroll in this round," and also noted there will be another entry point in 2025 Don’t call it a ‘discount’ but Tesla is giving a rare $3750 ‘credit’ as a ‘price adjustment’ to US consumers who take delivery of a Model 3 or Y before the end of the year This appears to be half of the upcoming $7500 EV tax credit which will come into play next year and is likely in response to consumers canceling or postponing orders due to wait times or the upcoming credit Likely don’t want to be sitting on inventory at the end of Q4 as demand is likely to remain very high into next year As reported yesterday, Tesla's profit per vehicle is $9500 as opposed to it’s nearest EV competitor Toyota at $1300 While adults struggle to find good use for the metaverse, Kids are easily socializing and spending money there as they are turning their nose up at allowance cash in exchange for virtual currency to spend in metaverse-like games such as Roblox. “They were handing it right back to me and saying, ‘Can you convert this to Robux?’” said Mr. Robleto, a 46-year-old web designer in Rockville, Md. “I don’t even need to have cash in the house. I can just go online and put $5 into their accounts.” 12 yr old daughter Kaylee bought virtual Louis Vuitton handbag and her 10 year old sister bought
Thu, December 01, 2022
Kicking Off December W/: Hyundai, Kia, Ringless, Quitting, Metallica
Shoot us a Text. December 1st doesn’t disappoint as we talk about Hyundai and Kia crushing November, illegal voicemails, people quitting on quitting, and Metallica’s new song (yep). Hyundai and Kia sales jumped a whopping 43% and 25% respectively as November deliveries set an all time sales record. Hyundai inventory was up 12% over last month and has more than doubled YoY The public and the FCC rejoice as ringless voicemails have finally been declared illegal , ending an era of phone spam that annoyed everyone without even letting them know. The ringless calls are now covered by the same Telephone Consumer Protection Act (TCPA) rules which condemn calls without explicit customer consent Frequently used by telemarketers, political campaigns, and a good number of auto dealers In June, a court awarded 2.5M in a class action suit against Moss Bros. Auto Group in Riverside, CA citing "aggressive unsolicited marketing" Job quitting has just hit a 17 month low , down to 2.6% as fewer workers voluntarily left their jobs according to the Labor Department’s Job Openings and Labor Turnover Survey Recent layoffs and inflation could be affecting employee sentiment and security Jobs market still remains historically strong T0 the joy of rural service departments across the country, Metallica has released its first single since 2016. Just half a day after <a href='https://trk.klclick1.com/ls/click?upn=fr-2Bhomk9Qyo0lD7Sg9xKh8edOMLmljMgK-2BLeHnzQhec4ww7uoG3pALEep9fk1YYAr9Tj-2BmU6yXt6HRRzNE-2FVdUqycBrJTlpbu-2BLLKzZGZ1qw5bslZFrTNdYlWzN0H5TcrVpH32DRkXCjlyeaA6CZfbTVOMzZ1sh0yl9ls1CH90AJKdU6Q6dX0wgjQOSKcxRd0TrqOKhsM3qXzv0Og5hUDqaiimafDPOnc-2ByMilABXNoZVgRP8a1No9xIJ-2BKXqhdNoor9Q-2B7J-2BYI6StUIF-2FyHbpMDvmQifntGtQo21GqSjZgQTf5cUZjXy6iSw3GVFM5PqzJ5ORiB0tpGo1WD4cgxWOcx9fc5UJhuG360EAJ5EOEJa1EO9cf80x0F1WcAOXgbbcK7-2FpHI1MtFihoViz5eLApRgWaOqh3g30VOWF4ptNZZYMjuHlYx54RWuEgEfp3kFuGP_ktYBVXznsociAgd5
Wed, November 30, 2022
Tesla Loses EV Market Share, The 10 Cars Holding Their Value Best, USMNT Defeats Iran
Shoot us a Text. It’s the last day of November and we’re ready to flip into the final month of the year as we talk about new S&P data that shows Tesla’s shrinking market share. We also talk about the used cars that are holding their value best. Of course, we have to talk about US Soccer for a moment or Kyle might explode. Data from S&P Global Mobility shows that Tesla continues to lose market share to lower priced alternatives Like the Ford Mustang Mach E and Hyundai Ioniq 5 Tesla owned 79% in 2020, 69% in 2021, and is down to 65% so far this year Out of the more than 525,000 EVs registered over the first nine months of 2022 in the US, nearly 340,000 were Tesla vehicles as compared to the 46 other nameplates S&P predicts the 46 nameplates will grow to over 150 by 2025 In the over $50k price point, Tesla still commands 85% of the market The report notes that the overall EV market is growing rapidly putting Tesla in the best position to capitalize: "Tesla today is the brand best equipped for taking advantage of the immediate surge in EV demand, though manufacturing investments from other automakers will erode this advantage sooner than later." NADA released an article of the The 10 Used Cars That Hold Their Value Best After 5 Years The vehicle search engine iseecars analyzed over 3M 5 yr old used cars sold in 2022, found the average five-year-old car depreciated by only an average of 33.3 (17% less than the depreciation in 2021 Fuel efficient smaller cars held their value best Jeep Wrangler with an average 7.3 percent depreciation and $2,361 difference Jeep Wrangler Unlimited with an average 8.7 percent depreciation and $3,344 down Porsche 911 with an average 14.6 percent depreciation and $20,6234 difference Toyota Tacoma with an average 14.9 percent depreciation and $5,926 difference Honda Civic with an average 16.3 percent depreciation and $4,237 difference Subaru BRZ with an average 18.2 percent depreciation and $5,985 difference Ford Mustang with an average 19.4 percent depreciation and $7,528 difference Toyota Corolla with an average 19.8 percent depreciation and $4,617 difference Nissan Versa with an average 19.9 percent depreciation and $3,183 difference Chevrolet Camaro with an average 20.2 percent depreciation and $7,981 difference US Men's Soccer team defeated Iran 1-0 to advance to the kn
Tue, November 29, 2022
A Simplified and Revamped Model 3, Bricked Lightning, Social Media vs. Entertainment
Shoot us a Text. Welcome to *almost* the last day of November as we talk about leaked plans to revamp Tesla’s Model 3, one F150 Lightning user's experience with a ‘bricked’ truck, and is that app ‘social media’ or ‘entertainment’? According to a Reuters exclusive , Tesla is working on the first revamp to their Model 3 sedan that includes an exterior update. Codenamed “Project Highland” one of the primary objectives is to remove unnecessary parts from the interior in order to focus on high value areas (like the display) and reduce production costs "Over and over, we found parts that are not needed. They were put in there just in case or by mistake. We eliminated so many parts from a car that did nothing," Musk said in an interview at a Baron Funds conference earlier in the month. Visible changes are a part of an effort to bring more ‘newness’ to the vehicle as the market is flooded with competing vehicles Tesla has the most profitable EV on the market by far at $9500 per vehicle as contrasted with about $1300 for Toyota EV enthusiast and Ford F150 Lightning owner Eric Roe (also owns a Kia Niro EV) tweeted that he plugged his truck into an Electrify America station, and heard a loud pop which was followed by a bricked truck He followed up the tweet with details of being on a family vacation with his 2 dogs 1000 miles from home and posted pics of his truck on a flatbed which wouldn’t even shift into neutral and had to be dragged onto the tow truck Emma Bergg, Global Director, Electric Vehicles & BlueOval City Comms for Ford Motor Company reached out right in the twitter feed and both Ford and Electrify America are said to have engineers on the incident to determine the cause The twitter feed is full of user feedback on which is to blame New tech, new problems Is social media becoming less ‘social’ and more ‘media’. Platforms like Tiktok are counting on it. Leroyson Figueira, a senior creative director at London-based marketing agency 160over90 explains: “It seems that every new digital platform that i
Mon, November 28, 2022
All Star Automotive Cast, VinFast Ships 999 Vehicles to the US, Black Friday Delivers
Shoot us a Text. Welcome back to a Turkey filled world as we throttle down on the last 5 weeks of 2022 starting with the Automotive News All Stars list. We also talk about VinFast delivering its first US vehicles, as well as the retail numbers from Black Friday. The annual list of Automotive News All Stars was announced where 40 individuals are selected from across OEM, Dealer, and Industry Partners. According to AN, “Our All-Stars persevered, delivering excellent products and services to their customers, introducing innovations that are key to the future of mobility, and making other significant contributions to the industry in myriad ways.” Elon Musk for being an early adopter or EVs, leading the US luxury segment, and turning Tesla’s Fremont CA factory into the highest producing factory in the US at over 500k vehicles Gregg Ciocca Sr, pushing forward with 8+ acquisitions so far this year who stated plans to double his store count from 25-50. Since last year when he earned #83 on AN Top 150, Ciocca’s reported revenue of $1.1B has almost doubled to $2B in 2022 Today’s Auto Collabs guest and CEO of tech startup, UVeve, 37 year old Amir Hever has transitioned the vehicle image scanning company he originally started to detect bombs from under vehicles to a powerhouse in the service drive detecting and producing condition reports in seconds to help service departments provide timely and accurate services to customers Joe Manchin, the W. VA Senator who aggressively and successfully pushed for an EV credit that brought manufacturing back to US soil. New Vietnamese EV maker VinFast has shipped its first batch of 999 vehicles to the US on a company owned ship bearing its name on the side. The vehicles will be delivered to customers who ordered them by the end of December according to the company. Some of the vehicles will be delivered to US EV subscription service, Autonomy, founded by Scott Painter (Truecar, Fair) According to the company’s female CEO, Le Thi Thu Thuy, the second shipment of the VF8 crossover will be on its way in January $42,200 + battery subscription ($169/mo) or $57k The company is building a North Carolina based battery factory scheduled to open in 2024 to take advantage of of the IRA tax credit for EVs Parent company Vingroup has property and resort holdings Black Friday sees both increased foot traffic up 2.9%</
Fri, November 25, 2022
Introducing Some New Faces, How An Industry Fixes a Brand Problem
Shoot us a Text. As we head into Black Friday weekend we’re excited to introduce you to a new voice from the frontlines of Retail Auto, Morgan McManaman, Senior Client Advisor and Brand Ambassador for Bozard Lincoln in Jacksonville, FL. Today we share a clip from our interview with her where she talks about being an advocate for working at Dealership to just about everyone she knows. You can catch the full interview on our In The Dirt w/ ASOTU Podcast here . Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, November 24, 2022
Safe Questions To Ask Family On Thanksgiving
Shoot us a Text. It's Thanksgiving Day and we're helping you be the savvy conversationalist around the family table with a list of fun questions you can ask to keep the gravy train rolling. We're thankful for YOU! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, November 23, 2022
Nissan EV Bundle, St Louis Service Dept Develops Tech, In-Vehicle PS5
Shoot us a Text. Tomorrow is the big day where we get extra thankfulness, but today we’re still battening down the hatches as we talk about Nissans new EV maintenance bundle. We also cover a St Louis Dealer doing their part to curb vehicle theft, as well as a potential PS5 embedded in a vehicle. Nissan launches it’s Carefree+ bundled maintenance plan for new EVs which is targeted to address both consumer hesitancy toward new EV technology and loss of revenue opportunities for Dealership service departments. The plan offers Ariya buyers a 3yr/36k scheduled maintenance including tire rotations and air filter and fluid replacements, 100k battery warranty and a year of free access to the EVgo public fast-charging network Data shows new EV owners are more likely to bring vehicles to the Dealership and adhere more closely to the recommended maintenance The move is also positioned to drive more dealership visits and increase opportunities for retention, upsells, and introduction to new models and technology The bundled product removes the opportunity to sell additional maintenance packages that would be a profit center Service Manager Elliot Silk and his team at Suntrup Kia and Hyundai St. Louis’ grew tired of their customers' cars being targets of theft and decided to fight back themselves. 27 vehicles per day are stolen in St. Louis, a 75% increase over last year “Probably about 8 months ago it started coming in faster and faster and then of course customers are calling me all the time saying, ‘what are you going to do about it?’” said Silk. “Well, nobody has done anything so me and my guys thought about it and we took it upon ourselves to come up with a solution.” The team developed a bluetooth interrupter that requires pressing a button on a keychain in order to allow the vehicle to start which renders the vehicle useless without it Costs $200 to install, and the store is going to be installing on all new models sold In a move that isn’t all that surprising to the hosts of this show, Sony and Honda are reportedly considering inc
Tue, November 22, 2022
Mazda Dives Into the EV Pool, GM Stores Maintaining Teslas, Mr. Beast Goes to College
Shoot us a Text. It’s the Tuesday before turkey day and we’re talking about Mazda’s plans to zoom their way into the EV race. We also talk about the thousands of Tesla’s being maintained by GM dealerships, as well as the new college course by…Mr. Beast? Better late than never, Mazda is the latest OEM to lean all the way into an EV future as they commit over $11B through the year 2030 to a number of partnerships to develop hybrid and BEV products including potential North American manufacturing CEO Akira Marumoto said the company is partnering on motors, chips, batteries and more in an effort to speed up development to stay competitive in the developing space, noting that US manufacturing may happen as soon as 2025-26 to take advantage of recent tax credits for Evs Mazda expects 25-40% of sales to be comprised of EVs by 2030 Expect 60% of the market to still require combustion by 2030 “We are not dismissing internal combustion vehicles,” Marumoto said. “We will have to respond flexibly.” Mazda currently has one hybrid and one BEV A 5% profit margin is targeted throughout the transition GM President, Mark Reuss, surprised some investors when he announced that a small number of GM dealers have been providing maintenance to thousands of Tesla’s since 2021 at the recent GM investor day Since 2021 Reuss reported that over 11k Teslas have been repaired by GM dealers citing their EV expertise from the Chevy Bolt as one of the reasons they are familiar and qualified with the tech, and chuckled as he said “It’s a new business, and it’s great.” Customers seem to love it too as they have a physical location to bring their vehicle with an established system to schedule and fulfill appointments According to Reuss, Tesla is investing millions to build more service facilities near GM dealerships There are several example of Tesla owners being quoted exorbitant prices and waiting months for service like a $16k repair a local EV shop was able to do for $700 The recently crowned most popular YouTuber in the world, Mr. Beast aka Jimmy Donaldson, is growing up and has teamed up with East Carolina University (ECU) to offer a YouTube creator course that teaches the fundamentals of YouTube creation Course will not require full enrollment and will be the first practical vocational training to prepare a more professional level skill set for the content creation platform
Mon, November 21, 2022
Dealerships Selling Like Hotcakes, Bright Drop To Hit $1B, Dominos Gets Charged
Shoot us a Text. It’s a magnificent Monday to be in the car business as we warm up those turkey ovens and those Black Friday deals. Today we discuss private sector buy/sells, GM’s Bright Drop reaching $1B, and Domino’s EV delivery strategy. The Dealership buy/sell transaction count reached 178 through the first half of 2022 which is a 19% jump from 150 in 2021 yet the total number of stores which traded hands was down. Private acquisitions drove the purchasing momentum as the publics’ activity was down by almost half Alan Haig, president of Haig Partners, said while the publics' acquisition activity remains high compared with the period before the coronavirus pandemic, it is below last year's first-half pace. Haig and others expect the publics to continue purchasing given their aggressive revenue targets. Record blue-sky is also a factor although earnings have seemed to plateau according to Haig Dealers and firms expect acquisition activity to pick up as we approach end of year "We're going to continue to see a lot of activity by private buyers," Haig said. "They have more cash flow than they've ever had in their careers." GM’s last mile delivery company, BrightDrop shared that it is poised to reach $1B in sales in the year 2023 which would make it one of the fastest companies in history to ever reach that figure within 3 years. Has over 25,000 reservations and letters of intent from Walmart, Hertz, FedEx and Verizon — and already has vehicles on the road making deliveries today In Sept the released their Trace Grocery E-cart and early adopter Kroger to deploy the boxy carts that can carry 350lbs of groceries w/temp controls that keep food safe for up to 4 hours and can be brought outside directly for customer pickup after digital verification “We’re a tech startup with a subscription-based product offering that’s backed by a global powerhouse — this puts us in a league of our own,” said Travis Katz, BrightDrop president and CEO. BrightDrop is tracking $10B in sales at a 20% margin by 2030 Domino’s Pizza is investing in a fleet of new Chevy Bolt’s in an effort to add delivery drivers to its ranks, cut emissions, save money, and of course, deliver more hot pizzas. Will be securing 800 units to serve 37 company owned stores and hundreds of franchisees. Units will start hitting the road this month as they will have the largest EV fleet in the pizza industry Hiring and retaining delivery driv
Sat, November 19, 2022
Dale Pollak's Way-finding Strategy For Used Cars
Shoot us a Text. On this special Saturday edition we're sharing a clip from Friday's All Things Used Cars room on Clubhouse with David Long where he and vAuto Founder Dale Pollak discuss the best strategy for managing used car inventory during volatile times. Join us every Friday at 9am EST for more discussions like this. Subscribe to our daily email for these insights in your inbox ever morning Monday - Friday Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, November 18, 2022
GM Plans to Save Big, Hybrids Give EVs A Smackdown, No Beer at the World Cup
Shoot us a Text. We’ve got that Friday feeling as we talk about GMs plans to leverage tech and fulfillment centers to save a pile per car. We also talk about Consumer Reports Brand Reliability results, as well as the last minute decision to keep soccer fans more sober. During GM’s Investor Day , President Mark Reuss announced that the company is planning on a $2000 savings per EV sold by using their new digital retailing platform developed by Tekion and shifting their delivery strategy to a regional fulfillment model. Opened 3 new centralized fulfillment centers (2 in CA and 1 in the southeast) to cut fulfillment times to as little as four days Largest savings will come from reducing incentives as unpopular inventory won’t be stuck on dealer lots Dealers will get vehicles for test drives only, inventory stays at GM facilities Reuss says Dealers will be leveraged as a competitive advantage “We'll use cloud data and machine learning to continuously scan the order pipeline and available dealer and factory inventory for the best fulfillment option," Reuss said Thursday. "We know how this works because we know what vehicles move in certain parts of the country and at certain dealerships." Hybrid cars top the 2022 Consumer Reports Auto Brand Reliability Report as EV’s rank as second to last above pickup trucks Jake Fisher, CR’s Senior Director-Automotive Testing, made comments at a press release which included pointing out EV’s are new tech and he predicts a significant improvement as is common with any new vehicle launch Toyota first released hybrid tech back in 1997 Cites Tesla’s Model 3 doing better than the newer Model Y Pickups were at the bottom of the list with only 7 of 17 models being rated avg or above avg CR’s five most reliable auto brands are Toyota (72 points), Lexus (also 72), BMW (65), Mazda (65) and Honda (62) Qatar bans beer sales at the world cup in a last minute reversal of plans leaving the global community scratching their heads and thirsty "Following discussions between host country authorities and FIFA, a decision has been made to focus the sale of alcoholic beverages on the FIFA Fan Festival, other fan destinations and licensed venues, removing the sales points of beer from Qatar's FIFA World Cup 2022 stadium perimeters." SA, Budweiser’s parent company, didn’t immediately respond to a request for comment, but did tweet, “Well, this is awkward…” “That dri
Thu, November 17, 2022
Automotive As The Economy’s Hope, Dealer CX Atrophy, Tiktok Analytics Grow Up
Shoot us a Text. Thursday is in full swing as we’re talking about why the Auto Industry might just be the economy’s bright spot in early 2023. We also talk about shaking off the deal-entitlement of 2022, as well as a new depth in analytics for Tiktok advertisers. The Automotive Industry might just be the bright spot for the economy in 2023 according to a Bloomberg analyst Connor Sen as he sights the potential effect the rebound will likely have on the country’s GDP through the next several quarters. Auto volume deficit has affected the economy substantially as produced cars don’t count until they are complete (with chips) and are sold to dealers Increase in new/used pricing single handedly accounted for 10% of the overall Consumer Price Index increase Owners holding on to vehicles longer increases repair bills and subsequently insurance rates as well The reverse is true as well. If output in Nov/Dec stays consistent w/ Oct, it will translate to a 10% quarterly jump which may account for 1-1.5% GDP growth alone Also as production normalizes, it will encourage the easing of inflation, which in turn encourages the Fed to relax on interest rate hikes and so on… “There’s still room to go, but the auto industry is the best reason to hope for an economic growth and inflation surprise over the next several months.” Jonathan Banks, vice president & general manager of vehicle valuations at J.D. Power issues a warning to Dealers to freshen up their customer engagement skills as the supply situation loosens up “In the process, it is more than possible that essential customer engagement skills across the dealership environment have dulled — if not atrophied altogether — while new important competencies have failed to be nurtured.” He suggests a return to strategy and demand analysis as the customer’s desire to engage digitally has become strikingly clear…as well as their options to do so He cites similar occurrences after the 2008 ‘Great Recession’ as new behaviors and technology emerged which made the market more transparent and efficient as it served consumers, Dealers, and OEM Tiktok just released new Audience Insights in Tiktok Ads Manager where advertisers can now drill down into a good number of categories to glean insights such as: Age, interests, usage behaviors, gender splits, interactions with influencers, hashtag
Wed, November 16, 2022
AutoNation Buys A Chunk of TrueCar, First Release Luxury Data
Shoot us a Text. We’re into Wednesday as we talk about AutoNation’s announcement of their purchase of a substantial number of TrueCar shares. We also talk about the just-released data on luxury loyalty including Tesla. An AutoNation press release announced that they have purchased 6.1% of TrueCar. From the release: "We are excited by this announcement from AutoNation, America's leading automotive retailer, as we see their commitment to a great Customer experience as fully aligned with the values of TrueCar and our offerings," said Mike Darrow, TrueCar's President and Chief Executive Officer. "Our companies believe this opens the door to an opportunity to collaborate on ways to provide a superior digital buying and selling experience for consumers." "We believe that TrueCar, with its leading digital marketplace, is well positioned to enhance the digital car buying experience and provide personal transportation solutions that are easy, transparent, and Customer-centric," said Mike Manley, AutoNation Chief Executive Officer. We also believe the investment will strengthen the relationship between our companies and provides an opportunity for closer commercial collaboration with TrueCar in the future." According to S&P Global / Polk Data presented during a main stage session at the recent Modern Retailing Conference,, luxury brand loyalty stands at about 46% including Tesla owners. When Tesla is excluded, the loyalty number drops to 44% Tesla alone has a loyalty rate of 86% Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, November 15, 2022
EV’s Moving, Retail Facial Recognition, Hitting 8 Billion People
Shoot us a Text. EV Headlines: GM CEO Mary Barra plans to tell investors that their fledgling EV business will sell 1M EVs and be profitable by 2025 at the company’s investor day this Thursday according to Bloomberg Margins will be lower than ICE vehicles as volume efficiencies build Morningstar Inc. analyst David Whiston said, ““GM won’t sell at the prices of Teslas, so maybe they won’t match the profits, but they should be able to show good margins. If Tesla can do it, there’s no reason GM, Ford and others can’t do it. They’re just behind on product lineup and manufacturing.” Vietnamese EV maker, VinFast may be planning an US IPO as soon as January according to sources familiar with the matter. Discreetly applied for an IPO in April of this year Backed by Vietnam’s richest man, the company has already secured $1.2B in incentives for its EV factory in North Carolina, and intends to start production in 2024 In July that it had signed agreements with banks to raise at least $4 billion to for it’s US expansion and has about 73,000 global reservations for its EVs Amazon is taking some heat for selling mod kits for eclectic bikes and scooters that unlock increased speed. The process known as ‘chipping’ trick the device into thinking the vehicle is only going 15 mph while it could be going more than twice that This is a bigger problem in europe where police aren’t savvy enough to recognize the nuanced differences yet Shopping is a getting a lot more personal as retailers begin to use facial recognition to reorganize layouts and inform marketing This shift would allow retailers to move from passive reaction to shopping behavior based on sales to a more active approach to in store behaviors Behaviors such as response to product packaging, time spent in sections, and how customers move around stores are able to be watched There are still privacy concerns due to the amount of personal data collection required without consent to understand this type of shopping behavior. Sometime today, the world’s population is expected to reach 8 billion people according to projections from the United Nations with 8.5B expected by 2030 due to Life expectanc
Mon, November 14, 2022
Conference Kickoffs, Lightning Powered Flying, and Skills for Social
Shoot us a Text. We’re in Palm Beach with a whole crew of incredible operators, marketers, and industry partners learning and networking. Today also kicks off Used Car Week and the energy is palpable. We are also talking about charging ground to air and a shift in social media skill requirements. It's a big event week in Retail auto as MRC kicked off of CXO/MRC on Saturday in Palm Beach, FL and Used Car Week kicks off today in San Diego, CA Ford F-150 Lightnings are set to power the first EV-Recharged electric plane flight for a high school football game flyover “According to Remy Oktay, the electric plane (a Pipistrel Alpha Electro) comes with a 21 kWh battery pack. As per Federal Aviation Regulations, it must land with a 30-minute reserve, which gives about an hour of usable flight time.” The electric plane will need 3 charges for a 2 city flight and has to have 30 minutes of charge left to land A local dealer, Monaco Ford, has stepped up to provide one of the 2 Lightnings needed to power the flight. There has been a big shift if the skills needed to hold the job of “Social Media Director” in the US since 2015 according to a new research report provided by LinkedIn Workforce Data Center Report aggregates data from job posts Seven out of 10 skills on the list in 2015 don’t appear on the 2021 list like blogging, event planning, and public speaking New additions include Instagram, graphic design, and Cavna In 2023 predictions by Social Media Today include Tiktok, video editing, video direction Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, November 11, 2022
Omnichannel is the new DR, Mazda On Top, & Target Goes Bigger
Shoot us a Text. We’ve got that Friday feeling as we ask the question if ‘omnichannel’ is the next retail auto buzzword. We also talk about Mazda’s claim to the top spot in 3 vehicle segment IIHS categories. One brand is also returning to brick and mortar with their customers. Omnichannel is quickly becoming the new buzzword as top dealer groups tout most customers begin or complete some of the deal online . Brian Deboer, Lithia CEO, stated Driveway sales accounted for 4% of total revenue Transactions are including test drives less and less CEO David Hut of Asbury predicts 40-50% of all transactions will be completed through their Clicklane property in the next 2-3 years Acceleride, Group1’s platform that utilizes the Roadster tool, saw 3 of 4 transactions in the group use some portion of the online journey in Sept. All groups note that it is not just the online capacity, but also the compelling brand propositions surrounding the transaction. Mazda brand proves to be the safest vehicles on the road , yet again, even with new testing procedures put in place. Small Car performance is now predicated on a new side test crash rating Brands like Subaru, typically highly rated, are having trouble keeping up with the new safety standards Both the CX-5 and the CX-9 also got the “Good” tag, one only given to 2 vehicles in each of those segments Currently only Mazda has proven it will be able to obtain the IIHS Top Safety Pick+ rating in 2023 With all the talk about retail going online over the last few years, Target is making its new stores a lot bigger Includes 20k sq/ft more space, more open design, and a backroom expansion focused on fulfillment “Target’s stores are at the heart of how we deliver for our guests, whether they browse the aisles, shop online or stop by for same-day services like Order Pickup and Drive Up,” said John Mulligan, executive vice president and chief operating officer, Target. “Guests and team members tell us they come to Target because they feel inspired, connected and welcomed. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our
Thu, November 10, 2022
NADA’s Manifesto, EV Round Up, World’s Top YouTuber
Shoot us a Text. It’s Thursday and we’re talking about NADA’s Guiding Principles which were just released. We also give a round up of current EV news, as well as the likely new king of YouTube. NADA has released its “NADA Guiding Principles on Evolving Business Models and the Dealer Franchise System” which reads like a clear manifesto of what it is for and against EV News Tesla starts hiring for Cybertruck Production according to job listings seen by publication Electrek Listings include job titles for operations and engineering positions related to producing the exoskeleton body Worlds largest casting press was ordered to stamp out the stainless steel body as opposed to the traditional method of a steel frame with panels Rivian CEO RJ Scaringe said demand remains strong and a second shift is now running at it’s Normal, Ill plant after posting a $1.73B loss in Q3 up from 1.23B YoY The plant has an official capacity of 150k Initial target for this year was 50k but was cut to 25k Currently 113k preorders for its RT1 up from 98k last quarter $14.2B in cash, enough to run through 2025 Volvo is going all in on its Flagship EV, 3 row, EX90 which will begin production in 2023 and make 60k units in 2024 according to the company It is the first of the “Vanguard” line which will transform the brand to all electric by 2030 The company projects the first year’s output will be pre-sold YouTuber Mr. Beast is about to take the throne as the #1 YouTuber with almost 113M subs to surpass longtime king PewDiePie. Gaining subs at a rate of 1M every 5 days is far faster than any other youtuber Jimmy Donaldson originally joined the platform in 2012 at age 13 and had his first viral video counting to 100,000 which took 40 hours The 23 year old has a net worth estimated at $56M and was just offered $1B for his business which he turned down Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email<br
Wed, November 09, 2022
Honda-Sony Dealer Service, Vroom v Carvana, 3 Day Workweek
Shoot us a Text. Welcome to Wednesday as we discuss the potential of US Honda Dealers being a service solution for the new Honda-Sony EV. We also review Vroom's latest earnings call, as well as one Chick-fil-a operator's 3-day work week that’s working. Despite a proposed direct to consumer, online only sales model for the joint EV project between Honda and Sony, CFO Kohei Takeuchi, said the 1000+ US dealers are well situated to service the vehicles during the company’s financial results announcement yesterday He noted that discussions are still ongoing about the servicing plan Regarding the sales plan he continued the sentiments that it would be different from Honda’s current way, saying: "It will be something unconventional, not Sony, not Honda, but something new," he said. Last month Honda and Sony announced deliveries as early as 2026 of the vehicles which will be produced in it’s Ohio plant and exported to Japan There were many questions from US Dealers who wanted to play a role in the new venture Honda continues to trim its N.America outlook due to shortages however, Takeuchi noted "The worst of the period is over, but there are still shortages of specific applications." #TILI: Who wants to come up with the leapfrog plan for “something new”?! Vroom’s recent earnings call touted record e-commerce gross profit per unit of $4,206, up 16%, decrease in expenses, net loss improvement from $(115.1) million to $(51.1) million, and a marginal improvement in EBITA Tom Shortt, Chief Executive Officer of Vroom, commented: “We continued to make progress on our three key objectives and four strategic initiatives as outlined during our Investor Day in May. We are intensely focused on improving the customer experience. He also noted 98% of their customers received completed registration before the expiration of temporary ones Earlier this year, Vroom shifted its focus to trim volume to focus on increasing gross profit per vehicle. .Similarly to the strategy change announced by Carvana last week. Vroom stock saw a 7.9% increase yesterday but is still down over 90% YoY. Carvana is down over 97% In a time when hiring and retention is a focus across the retail world, one Chick-fil-a operator is getting attention from his introduction of a 3-day work week at his store…and it seems to be working Justin Lindsey designed and implemented a full-time three-day-a-week
Tue, November 08, 2022
Ford Dealers Unite, Tech Downsizing, How Much Will Turkey Day Cost
Shoot us a Text. This Tuesday we’re talking about state associations banding together to push back against Ford’s plan to separate EV and ICE dealers. We also talk about the broader layoffs being announced in the tech space, as well as a preview of how much this years Thanksgiving might cost. Dealer associations across the country are accusing Ford of overburdening their dealer body and breaking franchise laws in a joint letter from over 13 separate state associations in response Ford’s recent required investment of $500k to over $1M on facility upgrades, staff training and new sales standards in order to sell EVs. Several State association leaders including John Devlin of PAAA, Don Hall VADA, and Robert Glaser of NCADA all signed the provision as well as sending a separate letter on behalf of their states Dealers arguing the same Tim Hovik, chairman of Ford's National Dealer Council says the the company were aware of the state associations position and communicated they are still able to make changes while noting the dealer council is on board with the where things are heading but said the word ‘supportive’ might be too strong a word. Elon Musk’s Twitter layoffs weren’t an isolated event as the tech and startup sectors ready themselves for border layoffs as economic conditions are considering hiring policies to stay competitive and profitable The Fed’s intention of raising the borrowing rates to more than 4% substantially changes the way businesses will operate. By comparison, in March 2020, interest rates were at around 0 to 0.25%. The access to cheap money enabled companies to go on a hiring binge the company . The first broad scale layoffs in the companies history You can expect Thanksgiving food prices to be around 13.5% higher than they were in 2021, according to data company IRI, with the average cost rising to over $60. One factor is the avian flu’s effect on turkey prices and a turkey shortage. The traditional Thanksgiving main dish is expected to cost $1.99/lb compared to $1.15/lb on average. The cost of sides h
Mon, November 07, 2022
Hopes Rising on Hydrogen, Amazon and Rivian Progress, Restaurants Copying Dealer Pricing
Shoot us a Text. Welcome to a fresh, shiny week in Retail Auto as we talk about the growing promise of the role of hydrogen as an alternative fuel. We also talk about the progress that has been made in the partnership between Amazon and Rivian, as well as new tech-enabled variable pricing at restaurants. We’ve expressed our optimism about hydrogen many times on this show and our friends at AN released a great article on the history and promise of this alternative fuel source over the weekend as companies and experts weigh in on the broad investment in the technology and a blended approach to the replacement of fossil fuels "It's finally happening," said Matt Thorington, engineering manager of fuel cells for global supplier Bosch, which said this year it will invest as much as $591 million in hydrogen production technology by the end of the decade. "There are things that don't work well with batteries," said Kristin Ringland, a global mobility analyst at Ernst & Young. Amazon’s fleet of Rivians EV delivery trucks have hit the milestone of 5 million packages delivered as there are now over 1,000 of the vans making deliveries on a regular basis Amazons full fleet consists of about 30,000 vans Starting in July, the EDVs first rolled out in Baltimore, Chicago, Dallas, Nashville, San Diego, and Seattle. Since then, they’ve been put into service in a bunch of new cities, including Austin, Boston, Denver, Houston, Indianapolis, Las Vegas, Madison, Newark, New York, Oakland, Pittsburgh, Portland, Provo, and Salt Lake City. The program was announced in 2019 w the goal of purchasing 100k vans and having them on the road by 2024 but that has been adjusted to the year 2030 citing supply chain blah blah blah Restaurants are considering taking a page out of the Dealer and Airline playbook by trying their hand at ‘dynamic pricing’ due to the mass adoption of online ordering and digital menu systems. This could include lowering prices during slow times to maximize staff, etc, and raising prices during peak demand times to maximize profits “The low-hanging fruit here is to use all of that data to figure out, when things are busy, how can I make more money from that?” Ashwin Kamlani, co-founder of Juicer, told Food On Demand. “If I own a pizzeria and I’m on a college campus and have a line out the door at 1 AM because all the kids have been out partying,
Fri, November 04, 2022
Used Cars Down, Carvana Down, Colors That Pick You Up
Shoot us a Text. It’s time for a Friday as we cover the Q3 earnings reports from the major auto retailers from across the country, as well as Carvana’s drop and their strategy to turn it around. We also get into the psychology of color and how to deploy it to your advantage. Third quarter results reveal that all 6 top public auto groups are seeing significant declines in used car gross profits from 11 - 31% as volume also drops for some AutoNation Inc., Lithia Motors Inc., Penske Automotive Group Inc., Group 1 Automotive Inc., Asbury Automotive Group Inc. and Sonic Automotive Inc. Gross profit per vehicle ranged from $1,588 to $2,478 for the quarter Penske’s CarShop and Sonic’s EchoPark stand alone used car stores have also been brake-tapped as both companies announce they won’t be opening any more stores this year due to the slowdown A combination of higher acquisition costs and softening demand Stephens analyst Daniel Imbro told Automotive News; While there is demand for used vehicles at a price point of $15,000 or less, Imbro said, there aren't many vehicles available in that range…But I think the used market will be a weaker profit stream relative to the new-vehicle side In yesterday’s earnings report Carvana reported a $508M net loss which is larger than the $506M loss from Q1 and more than 7x the $68m loss it reported a year ago as interest rates and inventory costs continue to rise CEO Ernie Garcia and CFO Mark Jenkins, wrote in a letter to shareholders.“The environment has continued to get increasingly difficult since the end of the quarter and it is probable things will continue to get more difficult before they get easier,” as the company shifts its strategy from focusing on growth to focus on profit. On a call w/ analysts Garcia also noted: “Cars are extremely expensive, and they’re extremely sensitive to interest rates.” He added he was hopeful rates might be close to peaking. “Interest rates have moved up materially, and most customers use financing to buy a car.” Profit per vehicle retailed dropped to $3,500 down $1,172 from $4,672 in Q3 2021 There will be no outlook for 2023 provided The colors you choose can make a distinct difference in the emotions you trigger in guests and buyers. This new infographic from Luxury SoCal Realty intends to help you be more likely to sell your house faster, curb child aggression, and even wake up happy Color can help you increase
Thu, November 03, 2022
Steve Greenfield Reads The News w/ Paul and Kyle
Shoot us a Text. Today we welcome back Steve Greenfield, Founder of Automotive Ventures to talk about today’s news and give us the breakdown of his November 2022 Auto Intel Report. The tech entertainment company founded by Audi named Holoride has since spun off as its own company and is now planning a 2023 rollout for its in-vehicle entertainment system according to Automotive News Audi announced their partnership to create holoride-ready vehicles at SXSW 2022 and the system will be available in 2023 in Europe Starting packages cost just under $700 USD and include a headset, hand controllers, games, and of course, a safety tether. Porsche has also developed experiences around the tech which can be taken for a spin at their LA Experience center where a professional driver whips back seat riders around a track while the rider plays a first person shooter game. The targets…bugs. Porsche has dedicated serious resources to developing a branded, immersive experience for riders Other features allow you to view media from your phone on the perceived 180 degree screen TILI: Maybe you can drive in a 2 hour loop and convince your kids they actually went to Disney Conversation around November’s Auto Intel Report . Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, November 02, 2022
Carvana Closes Dealer Marketplace, October Winners and Losers, 2023 Cybertruck, Waymo At The Airport
Shoot us a Text. Welcome to Wednesday as we go through the winners and losers of the October sales figures. We also talk about new information about the Cybertruck production dates, as well as the reason you might start seeing more Waymo vehicles at the Phoenix Airport. Carvana announced the closure it’s Dealer Marketplace in a letter sent to Dealer-customers dated October 31, 2022 Program will end in 30 days, Dealer listings will stay up until then October sales figures show that there are some big winners and losers as Toyota surged 28% cumulatively across its brands. Subaru is up 32% Mazda 30%. American Honda is down 16% At Toyota, the biggest winners were the Camry +68%, RAV4 +40% ; and Tacoma +44% Toyota had a 20 day supply at end of month Reuters reports that Tesla will begin early production of the long awaited Cybertruck in the middle of 2023 with mass production commencing by the end of 2023 according to sources with knowledge of the matter. Musk announced the early production date range in the last investor call, but mass production beginning late in the year means Tesla won’t be recording revenue on the vehicle until 2024 There are hundreds of thousands on the waitlist while Tesla has stopped pre-orders outside North America with Musk citing “ we have more orders of the first Cybertrucks than we could possibly fulfill for three years after the start of production." Final pricing or the production model have yet to be revealed Potential buyers put down $100 to secure their spot in line…since 2019 Robotaxis operated by Waymo are now making regular passenger trips to the Phoenix airport to become the first ride-hailing service to operate in a complex airport environment Previously they had offered airport trips to employees accompanied by safety drivers Waymo has been operating in Phoenix since 2017 and has a commercial service named Waymo One that uses a combination of vehicles with and without safety drivers and is available to anyone The company traditionally opens new service areas to “trusted testers” who have an NDA. Once the company feels ready, they open those service areas to regularly riders Airport trips account for 20% of all ride hailing which presents an opportunity for significant revenue g
Tue, November 01, 2022
A Supply Chain Bright Spot, Marketing Moves for 2023, Viral Coal Miner Gets The nod
Shoot us a Text. It’s the first day of November and we’re fired up to talk about a bright spot in Hyundai’s supply chain, as well as a gathering of some of the most powerful marketers in the country. We also talk about one coal-mining dad who is making waves as he publicly prioritizes his family. Hyundai and Kia sales are revealing a bright spot in ongoing supply chain challenges as Hyundai saw a 7% boost in volume and Kia recorded an October record as volume jumped 12% to produce 58,276 units Retail deliveries were up 11% overall to total 58, 76 as Randy Parker, CEO of Hyundai Motor America, noted. “Demand is still there and our lineup of EV vehicles contributed to record sales this month.” Kia’s EV model sales; Seltos, Sorento, Niro, and Forte, accounted for a 101% increase TILI: It looks like demand and production for EVs are in step At this years Association of National Advertisers (ANA) “Masters of Marketing” conference CMOs and marketers for notable companies gathered from across the country to discuss 2023 strategies and best practices, noting pressure to cut marketing budgets in downturns is a historically losing formula CEO Bob Liodice, opened the conference with a warning against cutting marketing to a large audience of members including execs from companies like Mastercard, McDonalds, Coca-cola, and many others He argued that brands will win when they actively differentiate themselves and defend the productivity of their investments in marketing in uncertain times In an effort to arm marketers to rightly advise leadership, Fleur Sohtz, chief marketing officer at Analytic Partners, noted pressure to cut budgets in 2023. “There’s a way to use insights to show the board that cutting your budget will not only harm your business in the short term, the impact in the long term is really substantial,” she said. “If you cut your budget and your competitor doesn’t, you can lose 15% of your business.” TILI: We’re not talking about inventory ads A TikTok video about a story of a Kentucky coal miner who came straight out of a mine and went right to a University of Kentucky basketball game with his young son is going viral. Video features coach John Calipari, who grew up in a coal mining family, telling the story of the man sitting in the stands with his face and red beard blackened by coal dust sitting with his wife and son The coach talks about loc
Mon, October 31, 2022
Ford’s Postponed Deadline, Shape Up Or Ship Out, A Year of Meta
Shoot us a Text. Don’t let the costumes fool ya, we’re here to work this Monday as we talk about Ford’s announcement to delay the deadline for dealers to decide on their EV future. We also talk about Ford’s efforts to part ways with underperformers, as well as what one year of Meta being Meta has gotten us. Today’s deadline Ford originally put in place for Dealers to make a decision whether or not to invest up to $1.2M and follow the standards required to sell EVs has been postponed until Dec 2nd after multiple requests from Dealers according to Ford spokesman Marty Gunsberg There are two tiers of certification. Both require no-negotiation pricing. The lower tier doesn’t allow the Dealer to carry any inventory and carries sales limits Certifications will last from 2024-2026 after which new dealers will be allowed to enter back into the certification process “A group of automotive trade association executives, representing associations in Virginia and 11 other southern states, this week asked Ford to "reconsider the Ford Model e program as it is currently described," saying it "includes unreasonable restrictions on dealer autonomy." TILI: We don’t know the full reasoning, but it likely has to do more with legal action than Ford having a change of heart An internal email circulated at Ford reveals the company is actively working to get underperforming workers out of the company. The Oct 4th email which was sent to all US managers focuses on all employees with 8 or more years with the company and have been identified as showing a pattern of underperformance They will be given the option to voluntarily quit to receive a severance package OR enroll in a 4-6 week “performance-enhancement plan” If they choose the enhancement plan, but do not improve, they will no longer be eligible for severance Employees identified as underperforming with less than seven years of service will face involuntary termination with severance “‘ The changes are intended to simplify how managers confront poor performance and provide an alternative to the improvement plan, which can be an intense period of work for employees who have made up their minds,’ the Ford spokeswoman said Facebook hits the one year anniversary of its transformation into its current name, Meta and investors as well as the public don’t seem very excited. In early 2021 then-Facebook was taking punches fro
Fri, October 28, 2022
The Bird Is Freed, New Service Plans for EVs, Get You Netflix Popcorn…at Walmart
Shoot us a Text. We’ve got that Friday feeling as we talk about the first steps of the Twitter takeover and what it means for advertisers. We also talk about the new and hopeful service strategies for Dealer EV service departments, as well as a Walmart - Netflix partnership just in time for the holidays. The Twitter takeover is complete , but we’re going to be hearing about it for a while. Immediately following the closing of the deal, Elon Musk assumed the role of CEO and fired outgoing CEO Parag Agrawa, CFO Ned Segal, Vijaya Gadde, Twitter’s top legal and policy executive, and Sean Edgett, general counsel Tweeted “The bird is free” Severances cost approx $200M Some argue there is a conflict of interest in the automotive advertising sector Plans to reinstate Former President Trump’s account among others while committing to not let Twitter become a free-for-all In a message to Twitter advertisers, Musk wrote “Dear Twitter Advertisers, I also very much believe that advertising, when done right, can delight, entertain and inform you; it can show you a service or product or medical treatment that you never knew existed, but is right for you. For this to be true, it is essential to show Twitter users advertising that is as relevant as possible to their needs. Low relevancy ads are spam, but highly relevant ads are actually content! Fundamentally, Twitter aspires to be the most respected advertising platform in the world that strengthens your brand and grows your enterprise. To everyone who has partnered with us, I thank you. Let us build something extraordinary together.” The EV service game is going to be different , but certainly not a disaster according to an expert panel hosted by Automotive News Fixed Ops journal Ride quality and maintenance needs become more important and frequent due to the heavier weight and acceleration capabilities of EV John Rock, Retail Innovation EV/CX Manager for Cadillac said “Lube, oil and filter were always the entry point. Now it’s tire rotations that become the entry point.” Tire replacement, suspension and alignment work are likely upsells fRetention is likely to increase even if revenue per vehicle declines according to panelist Peter Kahn, senior director-research and insights for dealership management system provider CDK Global Melissa Best, service director fo Pearson Hyundai in Midlothian, VA notes that the extended warranty terms on EV batteries should also increase deal
Thu, October 27, 2022
Closure of Holman Store, Dealership Turnover Drops, Elon Sinks in @Twitter
Shoot us a Text. This Thursday is full of fire as we talk about the sudden closure of Holman Lincoln Ford in Pompano Beach that is sending a shockwave through the industry. We also cover the sizable drop in employee turnover at Dealerships in 2021, as well as the viral video of Elon Musk marching into Twitter HQ. Holman Ford Lincoln in Pompano Beach closes permanently There is no mention of the closure on their site and the location no longer appears on holmanauto.com Their Google Business listing for the service center was also marked ‘permanently closed’ yesterday which also appears to have reverted to an open status Sources close to the group note that the decision was not made on the basis of relationship with the Ford/Lincoln brand According to the NADA Annual Dealership Workforce study, turnover in US dealerships saw a substantial drop in employee turnover as it dropped to its lowest level since the study was first introduced in 2011 “Average industry turnover was 34 percent in 2021 — the lowest level in the 11-year history of the National Automobile Dealers Association's annual Dealership Workforce Study.” The key potential differentiator is that earnings were up 27% in 2021 Average dealership employees rose to 74, which is still below pre-pandemic numbers, contributing to both efficiency and higher earnings per employee A tweet by Elon Musk shows him marching into Twitter HQ carrying a sink with the caption being “Entering Twitter HQ - let that sink in!” His pro
Wed, October 26, 2022
Outside of Retail Shops, Apple is Grumpy, and Hyundai Building Big
Shoot us a Text. We are in Atlanta with Michael Cirillo and we couldn’t help but stand in front of some iconic retail locations for the show. Today we are talking about how lawmakers are forcing the hand of Apple engineering and Hyundai is preparing for a big boost in state side EV production. The EU is making Apple grumpy by passing legislation that will require them to shift all charging ports to USB-C on mobile devices Greg Joswiak, VP of Worldwide Marketing, has been very clear that Apple is not happy about being legally coerced into changing technology Other options include moving completely to wireless charging to avoid the retool to USB-C #TILI: Sometimes tech is best left to the…tech people. Hyundai is pressing into EV production with their breaking ground for a Georgia based ‘Megaplant’ set to begin production in January 2025 Target production is 300k vehicles per year in phase one and 500k as they scale the factory There will also be a redesign of the entire supply chain for the factory, citing many companies looking to move close and build production facilities in GA as well The US based factory will put Hyundai in a great position to be eligible for new EV tax credits that require US production #TILI: Rivian is still trying to get to GA and Hyundai is off to the races. This is sure to be the first of many announcements of state side production for EVs. Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, October 25, 2022
Hatchback Takeover, Farley Flies In An F150, To Tip or Not To Tip
Shoot us a Text. This Tuesday we’re talking about how a hatchback just won SUV of the year. We also talk about a over-delivering tweet from Ford CEO, Jim Farley, as well as the uptick and sentiment around POS tipping. Somehow a hatchback just won the SUV of the Year award, thanks to Hyundai self-classing their Ioniq 5 “Regardless of how any individual defines the term, there's no denying our 2023 SUV of the Year handily meets the diverse needs of the compact SUV segment it competes in, and then some.” -MotorTrend “Long story short: You and I may think of today’s SUVs as practical family haulers, but in the eyes of NHTSA, they’re work vehicles first and foremost.” -Jalopnik Hyundai expressed the reasons for calling the Ioniq 5 an SUV is because of the AWD capability, large passenger volume, 2300 pound towing capacity, high seat posting, and ease of loading the rear cargo area for purposes of utility. #TILI: And we thought D2C and Agency model were concerning…now we don’t know which way is up! Ford CEO, Jim Farley took to twitter to make a bit of a surprise announcement: The F150 Lightning is even faster than the company previously announced. TWEET: Update: The 0-60mph speed for #F150Lightning w/ Extended Range Battery is now under 4.0 seconds. Lightning fast!⚡️🏁 Originally, the company had released a ballpark number of 4.5 seconds Whether intentional or not, this announcement adds to a number of positive news surrounding the fledgling launch of the iconic pickup With only 8760 units having been delivered as of October 6th, there is no telling when the original 200k orders will be fulfilled as production continues to ramp up TILI: Lightning fast speed, tragically slow delivery. Has anyone seen KY motor speedway? Over the past 36 months, tipping at local food establishments has become much more of a norm . New studies examine how people feel about the social pressure that comes with that ‘tip screen’ and when enough is enough. 67.7% of Americans feel pressure to tip when prompted on a screen and 44.8% only tip because it shows up Another survey by Time2Play revealed that 86.8% feel uncomfortable when prompted 53% say they have tipped for take out currently vs 24% pre-pandemic Avg tip for takeout 13.8% Avg tip for sit down 22.8% Almost twice the amount of people leave a tip at a local coffee shop v. Starbucks #TILI: What if your dealership was kno
Mon, October 24, 2022
Major Lenders Getting Careful On Car Loans, Tesla Cuts Prices in China, Not-So Hole-In-One
Shoot us a Text. We’re firing up the engines (and batteries) this Monday as we cover the shifting landscape with auto loans. We also talk about the reasoning behind Tesla’s price cuts in China, as well as a lucky swing that turned unlucky for one Ford store. The tides are shifting for major auto lenders as an increase in write-offs and pull back in originations are noted across the country. Wells Fargo & Co. - higher loss rates for loans it originated late last year led to an increase in write-offs for the period Tightened underwriting standards when they saw last year's originations starting to have problems. This led to a 40% drop in origination Ally Financial Inc. saw charge-offs for retail auto loans quadruple in Q3 Said charge off rates could climb to 1.6% from current 1.05% although still below pre-pandemic levels Fifth Third Bancorp said it’s pulling back on originations citing dropping used car prices and risk of being upside down Chief Credit Officer, Richard Stein said Fifth Third is seeing more consumers -- subprime credit scores, outside the companies typical borrower, try to get concessions from lenders to keep vehicles Tesla cuts prices by over 9% on some on Model Y and Model 3 vehicles in China citing falling material prices and overcoming recent production glitches Model Y now costs the equivalent of $39,880, down from about $43,750, while the long-range version has an even bigger discount. A standard Model 3 fetches about $36,710, down by about $1,930 bringing levels closer to what they were in March This announcement came a day after CEO, Elon Musk warned of a “brutal recession” an an earnings call Competition in the Chinese market is much hotter than it is in the US market where Tesla still holds a commanding lead in EV deliveries A Ford dealer in Arkansas is in a legal battle with a consumer who sunk a hole-in-one at a golf tournament for, he thought, a brand new F150 Austin Clagett stood in front of the $53k pickup for a photo after sinking his hole-in-one on Oct. 8 at Morrilton Country Club On its Facebook page, the Dealership said that it provided the truck "for display/advertising purposes only" because it didn't have enough lead time to obtain insurance for a giveaway. "Without our knowledge," the store wrote, "Morrilton Country Club promoted that this new truck would be available as a winning prize at the event despite our agreement that it would be for display purposes only." Screenshots show the Country C
Fri, October 21, 2022
Lithia Records a Record, A Rural Dealer Group is 1st in GM EV Charger Program Rollout, Zoom Calls On Airplanes
Shoot us a Text. We’re closing out the week of regular programming as we talk about Lithia’s record Q3 numbers with a twist. We also talk about a Wisconsin Dealer Group who is the first to execute on a widespread GM EV Charger program, as well as the new Starlink internet service on commercial airplanes coming soon. Lithia Motors hit a Q3 record as their net income increased by 6.9% to just over $330m and total revenue jumped 18% to $7.3B as reported in their quarterly earnings call Both new and used sales were up 4.3 and 6.4% respectively They continued to buy and sell throughout the quarter, returning to the Wisconsin market in july Purchased 5 Airstream dealerships in the Pacific Northwest in October Avg new car sale $47,416 w $5789 gross (up 11%) Avg used sale $30,361 w $2478 gross (down 19%) Same store sales total units down 6.4% CEO Brian DeBoer said "Our teams are focused on improving operating leverage as fundamentals normalize across our industry," GM’s Dealer Community Charging Program which was announced last year has installed their first 2, level 2 EV chargers Wheelers Family Auto Group in Marshfield, Wisconsin, are the first to install the 2 chargers Owner Mary Jo Wheeler-Schueller said “This is the first one in North America. To offer this will put Marshfield on the map. This is a great stop for people commuting from other areas to stop and check out our community and what Marshfield has to offer. Co-owner, Daniel Wheeler, added that “there are not a lot of chargers” in Central Wisconsin and there are “ton of people” commuting north. The Dealer Group has purchased 5 chargers total through the program for $4,447 each, or $22,245 total. The GM program plans to install up to 40,000 Level 2 chargers across North America as GM notes that 90% of Americans live within 10 miles of a GM Dealer Starlink, Elon Musks’ satellite internet service provider announced that the high speed service is coming to commercial aviation starting in 2023 offering service as fast as 350mbps per plane From the starlink site: Starlink can deliver up to 350 Mbps to each plane, enabling all passengers to access streaming-capable internet at the same time. With latency as low as 20 ms, passengers can engage in activities previously not functional in flight, including video calls, online gaming, virtual private networks and other high data rate activities. Currently, the very best speeds on planes top out at 100mbps Other featur
Thu, October 20, 2022
GM Thinks About Hummer Lite, Netflix+ (Kind of), and The Tale of the Tech
Shoot us a Text. This Thursday we’re talking about a new mid size concept for Hummer, Netflix rebounds in Q3, and a new study that has retailers asking for more tech to enhance the customer experience. Just a bit smaller is what GM is considering in a new concept , said to come into its Hummer line as a mid size EV pickup. A smaller, electric Hummer is still a design concept in GM’s California studio, but has a good chance of going into production and is seen as a priority project, said the people, who asked not to be identified because the plans are private. GM is spending $35bn to bring EVs to market over the next 3 years GM has secured 90k reservations for the current Hummer, priced at $110k As of Sept. 30, they have only delivered 781 vehicles…. TILI: 90k and 781 are different numbers, but let’s add a new line for Europe! With ads and gated multi-logins on the horizon, Nexflix announces an increase of 2.4 million subscribers in Q3 Most of the subscriptions came from outside of the US “After a challenging first half, we believe we’re on a path to re-accelerate growth,” Netflix said in its quarterly letter to shareholders. “The key is pleasing members.” Netflix generated about $7.9 billion in revenue in the third quarter, a nearly 6 percent increase from the same period last year. The company announced they will no longer offer subscriber count as a tracking metric starting in 2023, saying that total revenue is the most important metric moving forward According to a new study from retail research company PYMNTS, big retailers say they need more tech to deliver better customer experiences. American retailers use an average of 5.3 digital tools Of those using less than 3, only 17% are happy with the experience they are providing Since March of 2020, a record number of consumers began using online ordering and curbside pickup to purchase groceries and say it is a habit they are likely to continue Despite the evidence that those who win in retail are spending on tech, overall spending on tech in retail dropped in 2021 Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at:
Wed, October 19, 2022
An EV Flagship, FTC Drops A Big Fine on a Dealer Group, 1B Hospitality
Shoot us a Text. Welcome to Wednesday as we talk about Cadillac’s return to the ultralux state. We also cover a major fine levied by the FTC on a Maryland Auto Group, as well as a $1B investment in hospitality for an upcoming F1 event in Vegas. In a long awaited reveal on Monday, Cadillac unveiled their new flagship EV, the MSRP will be north of $300k ultra-luxury Celestiq which will begin production in late 2023 600 hp , 640 ft/lb of torque, and 300 mi of range “Celestiq is the purest expression of Cadillac, acknowledging our incredible history and driving us to a bolder and brighter future,” said Cadillac global vice president Rory Harvey in a press release. “It is a completely bespoke work of automotive art, built around the most advanced and innovative technology that we have ever engineered into an automobile.” Hand built with no more than 6 being made at a time Concierge design process where approved Dealers advise buyers as they and designers work together to craft a unique vehicle where “Each client will experience a personalized journey to make their vehicle exactly the way they desire.” Features include standard rear-wheel steering and all-wheel drive, multi zone auto dimming sunroof and a 55” wide hi res display spanning the entirety of the dash Tili: Is this an EV dev or a brand flex? Yes. Passport Automotive Group which holds brands, BMW, Infiniti, Mini, Nissan, Mazda, and Toyota has been fined $3.38 M by the FTC in a discrimination suit involving charging illegal fees and engaging in lending discrimination From AN “ FTC alleged Passport advertised certified, reconditioned or inspected cars at specific prices but added extra certification, reconditioning or inspection fees it falsely claimed consumers were required to pay. For example, the FTC cited one case in which a vehicle advertised for $24,050 sold for $26,440 because of illegal add-on fees. “ “...also alleged Passport charged Black and Latino consumers about $291 and $235 more, respectively, in interest than white consumers The fine will be paid by a combination of the group, as well as its president Everett Hellmuth and vice president Jay Klein Passport says it disagrees with the allegations in the strongest possible terms but noted that fighting the ruling "...ultimately would have distracted us from the important work we do. "That time, energy and money can be better utilized by continuing to invest in our communities," the dealership group said. "For that reason, we agreed to the settlement announced today." This is the second run in w the FTC for Passpor
Tue, October 18, 2022
Amazon’s 150% Churn, Gen Z Drips, An Old Ford Factory Goes Boom
Shoot us a Text. This Tuesday we’re talking about Amazon's impressive employee churn rates. We also cover a new report indicating big differences between Millennial and Gen Z buying habits, as well as an iconic former Ford Factory going down in Jacksonville. According to leaked internal documents, Amazon is experiencing attrition rates as high as 81% across the entire company spanning positions from warehouse workers all the way to vice presidents The documents, which include several internal research papers, slide decks and spreadsheets, indicate that only one third of new hires stay past 90 days with the vast majority of them willfully quitting vs being laid off or fired A New York Times investigation revealed an annual turnover rate of 150% among hourly employees Wall Street Journal and National Employment Law Project have both found turnover to be around 100 percent in warehouses , twice the industry average A major issue cited is the lack of tracking training and promotion data $8B is the estimated cost of the turnover Ironically, saw a huge Amazon ad offering free technical training with no college debt featuring a smiling Gen Z’er Tili: People need purpose A new study by Advantage Unified Commerce indicates a major shift in buying behavior between Millennials and Gen Z when it comes to indulgent premium products Indicates that brands must deliver an elevated ‘premium’ experience that creates indulgent moments in the midst of ordinary life Millennials = aspirational Gen Z = intentionally premium Consumers report no intent to walk away from premiumization in the face of inflation, with 65% planning to purchase premium over the next 12 months “premium” defined as: worth the purchase with "added value, proof of value, performance, inclusion and shareability." Gen Z indicates being willing to work more as opposed to scaling back purchases A piece of auto manufacturing history is slated to be demolished as a Jacksonville City Council unanimously agreed Tuesday with the owner of the Ford factory which was built 100 years ago The plant made Model Ts for about 8 years before Ford closed operations as a result of the great depression At one point the factory boasted 200 cars per day and was one of the highes
Mon, October 17, 2022
Further Investment in Fixed Ops, EV Service Training Safety, Pop-ups Here To Stay
Shoot us a Text. Let us be the first to welcome you into a fresh Fall week as we survey what Dealers are doing across the country by investing in fixed ops. We also talk about a cogent warning for EV service safety, as well as the pop-up retail trend that will be sticking around well past the holidays. As new car supply continues to struggle and the used market is riding the pricing roller coaster, many Dealers continue to invest in fixed ops to take hold of the opportunity to gain market share and to build resiliency into their future profit model Many dealers like Brian Godfrey of Pat Milliken Ford in a Detroit suburb has immediate need for multiple techs and additional bay space as sales continue to rise by double digits Can only handle existing customers Customer service and retention remain the focus of keen operators as they know data shows over 70% of customers choose non-dealership repair shops once warranties expire Shortage of new cars will exacerbate the issue over the next 36 months Publics and privates are seeing sales growth and adding capacity Group 1 is up 16% YoY through through the first half #1 Cochran Automotive in the Greater Pittsburgh Area is adding 27k sq ft to expand wholesale parts business Adam Simms, owner of Price Simms in the San Fran Bay Area built a commercial fleet center that is seeing continued growth. "I'm very bullish on the small commercial fleet business," Simms adds "can't invest enough money" in service and parts The new EV service game is about training, procedure, critical thinking, and safety as a new battery (pun intended) of testing systems can solve electrical problems and avoid the pinnacle issue that will stop an EV, ‘energetic failure’ . Different than ice procedures where there are few ways to get in fast trouble while diagnosing or repairing a vehicle, EVs require extra caution due to extreme voltage at multiple points PPE, ABC fire extinguishers guard against shock and small fires, but ignoring thoughtful procedure can lead to electrocution the ominous ‘thermal runway’ Thermal runaway is when a battery cell short circuits and heats up leading to a chemical reaction that is near impossible to stop like in this video of parked electric busses The encasement of battery cells in several layers of aluminum make it difficult to direct suppression at the seat of the fire <
Fri, October 14, 2022
Sony/Honda in NA, An OEM Goes Air Taxi, & Pickleball is All the Rage
Shoot us a Text. Welcome to Friday, home of All Things Used Cars on Clubhouse. Today we look at rising new ventures in auto and sports to pay attention to. We look at the newest announcement by Sony and Honda with their plans in North America, Hyundai pressing the accelerator on air travel, and the sport you didn’t see coming. Just a couple months after announcing their new partner company, Sony and Honda announce a plant to be built in North America First deliveries will take place in early 2026. Models for sales, aftermarket, and service are still not confirmed, though Honda’s online D2C experiment in Japan is most likely to make its way to the US. Sony Honda Mobility also expects initial sales in Japan to come from North American exports to the automaker’s home country. #TILI: There is no doubt that the lack of mention of the dealer network from Honda has us concerned, but we know that quality conversations from Honda dealers are an opportunity worth stirring up quickly! Air Taxi conversations aren’t going anywhere according to a new collaboration by Hyundai The US FAA is still working on considerations for aircraft certification as well as traffic, take off, and landing rules This is the first collaboration by an automaker with an established aeronautical corporation. TILI: So, dealers know how to sell transportation products…ever thought about finding in-roads to conversations with new entrants in this space for delivery and service? Pickleball is taking the world by storm, and it isn’t just retired folks at the YMCA anymore Tom Brady and Kim Clijsters purchased a 2023 expansion team Sam Querrey , the former world #11 and two-time Wimbledon semi finalist, announced his next chapter: pickleball. Other notable team owners include LeBron James, Draymond Green, Drew Brees, and Kevin Love. Recently Carvana became the title sponsor for the PPA (Professional Pickleball Association) T
Thu, October 13, 2022
Burnt Hair is All the Rage, Carvana Petitions, and Connecting Coffee and Flying
Shoot us a Text. Thursday is full of brand and community conversations. We are welcoming special guest Ben Hadley to talk about Elon’s new Musk, Carvana petitioning to get back in Michigan, and how Delta and Starbucks are giving you more bang for your buck on the way to data and brand loyalty. Tesla is a car, tunnel, social, solar, space, internet, charging, roofing, media, perfume (wait) company Elon announced The Boring Company (responsible for new tunnel drilling tech) was selling perfume called “Burnt Hair” The perfume sells for $100/bottle and the company sold a million dollars worth already We must note that back on April 1, 2022, we offered a gift of Elon’s Musk for 267 billion referrals to The ASOTU Daily Push Back Boring Company, a tunneling firm last valued at $5.7 billion, sold flamethrowers at $500 apiece in early 2018, raising $10 million. He also sold 50,000 Boring Company hats. #TILI: One thing we know for sure is that Elon has built brand, community, and media content to the point that product is not dependent on sales anymore. Carvana is leveraging consumer trust to regain Michigan sales license Customers we asked via email "to support keeping Carvana and online, hassle-free car buying available without interruption in Michigan." The retailer noted they believed the paperwork and legal processes they are being ‘singled out for’ are not in the best interest of the customer. This is the second time Carvana has taken such action. They saw over 6k people sign a similar petition in Illinois not too long ago. Carvana also announced they are the premier sponsor for Pickleball a week ago #TILI: Would the court of public opinion petition to keep you in business? If you fly Delta and love Double Shot No Whip Vanilla Pumpkin Spice Venti Lattes, you are in luck with a new rewards program announced yesterday. “To entice customers to join the partnership, members who link their accounts between now and December 31 will earn an additional 500 SkyMiles and, after joining and making one Starbucks purchase, they will accrue 150 stars, enough for a free coffee.” One
Wed, October 12, 2022
Tesla’s EV Hold Slips, Nissan Loses ¾ of a Billion, Real Life Asteroids
Shoot us a Text. Welcome to Wednesday as we are talking about the recent delivery numbers in the EV game. We also talk about Nissan’s sale of their Russian business at a substantial loss, as well as the results of a real-life asteroids game. Tesla’s share of the EV market is still dominant but is showing signs of slipping as figures show their 79% ownership of the market in 2020 slipped almost 10 points to 69.95% in 2021. As of August of this year, Tesla appears to hold 67% of the market despite many new offerings. Tesla Model Y: 134,978 units Tesla Model 3: 123,634 units Ford Mustang Mach-E: 25,596 units Tesla Model S: 20,032 units Tesla Model X: 19,739 units Hyundai Ioniq 5: 16,929 units Kia EV6: 15,612 units Chevy Bolt EUV: 11,788 units VW ID.4: 9,127 units Nissan Leaf: 8,740 units Ford and Hyundai have taken big strides forward in the last year and GM is also poised to continue their growth as they recently announced an increase in Bolt EV deliveries in Q4 Nissan will sell its entire stake in its Russian business to a state owned entity for 1 Euro (.97) taking a loss over over $685m. According to Reuters: The Japanese automaker transfer its shares in Nissan Manufacturing Russia LLC to state-owned NAMI, it said. The deal will give Nissan the right to buy back the business within six years, Russia's industry and trade ministry said. The Nissan deal was "of great significance for the industry," Russia's Industry and Trade Minister Denis Manturov said in a statement. Nissan is revisiting their alliance with Renault who owns 43% of Nissan as sources close to the matter say they are considering a new electric vehicle venture 32 minutes is a BIG deal when talking about outer space asteroid bumper cars. NASA sees this as a way to protect against additional threats “the universe may throw at us” NASA was hoping for a 10 minute difference, but the asteroid slowed its orbit by about 32 minutes “All of us have a responsibility to protect our home planet. After all, it’s the only one we have,” Nelson said. “This mission shows that NASA is trying to be ready for whatever the universe throws at us.” Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedi
Tue, October 11, 2022
GM Wants To Be A Power Company, CNN Pulls the Rug on NFT Holders, Black Friday Begins
Shoot us a Text. It’s a great Tuesday to be in Retail Auto as we cover a move by GM to leverage their battery tech into home and fleet services. We also talk about the demise of CNN NFT project that promised ownership of history, as well as the fact that October is apparently the new November when it comes to Black Friday. GM is launching offshoot division , GM Electric, which will sell products and services that allow consumers to transfer and store energy to and from their personal EVs and EV fleets named Ultium Home and Ultium Commercial Special charging and storage equipment will allow for the storage of power and management of that power to residential homes and will act like a back up generator other commercial applications will make allowance for the transfer of power from one vehicle to another to help alleviate periods of stress on the power grid Travis Hester, head of GMs EV growth initiatives said “We have become an expert battery manufacturer,” he said. “It’s a natural evolution for us to move in here.” as the company moves to leverage their massive investment in battery tech and production capabilities Tesla and Toyota have been offering similar services. Tesla generated $866M in Q2 TILI: Owning the driveway has more bluesky than ever In a surprise move to it’s NFT community, CNN has announced the sudden abandonment of it’s NFT project, “Vault by CNN” which was comprised of collectible and notable “Moments” from history as reported by CNN In the Summer of 2021 CNN minted reports of key events or artistic interpretations inspired by them, creating digital collectibles that owners could show off somehow or trade with others, like baseball cards. The program is shutting down its Discord and will not be issuing any type of utility leaving investors, some who have invested 6 figures holding the bag There will be some sort of “rebate” effort which in many cases will only account for a small percentage of the tokens current value in crypto The parting Discord message thanked the community for being a part of the ‘experiment’. Users noted that the word ‘experiment’ was never used. They are not alone as a lesser known AP attempt at NFTs as well as many other major efforts have shuttered in recent months TILI: More than the money, the brand is the big loser Black Friday has official
Mon, October 10, 2022
Guest Host Damon Lester, Total Recall by Rivian, Tesla’s Takes the Casino Playbook, Toyoda’s Happy Dance.
Shoot us a Text. Welcome to the second full week of October during a five Saturday month as we talk about a near-total recall of every Rivian vehicle produced this year. We also talk about Tesla’s latest strategy to skirt state franchise laws, as well as a “happy dance” little moment for Toyota President Akio Toyoda Rivian recalls just about every vehicle they’ve made this year, and unlike Tesla’s last recall, this can’t be fixed over the air. According to a notice filed with the National Highway Traffic Safety Administration (NHTSA), the fastener connecting the front upper control arm and steering knuckle may not have been “sufficiently torqued.” If left unchecked the loosening of the fastener could “cause a loss of vehicle control and increasing the risk of a crash.” Symptoms included, vibrations, noise, and harshness in the front suspension, and changes in steering This affects 12k of the 14k vehicles produced and spans every model from the RT1 Pickup to the electric delivery vans the company is building for Amazon “It’s important not to minimize the potential risks involved and why we are volunteering to conduct this recall,” Rivian CEO RJ Scaringe wrote in an email to customers viewed by CNBC. “In rare circumstances, the nut could loosen fully. I want to reiterate that this is extremely rare, but it does reinforce why we are acting with such urgency and caution.” You can view Rivans recall page here Tesla is throttling down on its plans to build its sales and service centers on tribal land in New Mexico to exploit a gap in the state’s automotive franchise laws. After the company lost a proposal in 2019 to gain an exception to the laws in the legislature they began seeking alternate means and were able to open their first center inside an old casino on tribal land north of Santa Fe as the partnered with the First Nation of Nambé Pueblo Tesla is now opening a second to offer service coverage to Albuquerque thanks to a new partnership with the Santa Ana Pueblo. There will also be a sales center and EV chargers Some state legislators such as Cabinet Secretary, Ricky Serna, made an appearance at the event to express his sentiment, “This project will yield economic growth, healthy career pathways and contribute to Governor Lujan Grisham's aggressive carbon reduction goals </em
Fri, October 07, 2022
Waterlogged EVs Exploding, Amazon Stops Scout Autonomous Delivery Program, Bad News = Good News
Shoot us a Text. It’s Friday and we’re wrapping up this week's news talking about an unanticipated challenge with waterlogged EVs. We’re also talking about why Amazon is pulling the plug on its autonomous delivery robot program, as well as what we should be looking for in today's jobs report. Waterlogged EVs are beginning to ‘explode’ according to Florida’s Chief Fire Marshal "There’s a ton of EVs disabled from Ian. As those batteries corrode, fires start," Patronis tweeted Thursday. "That’s a new challenge that our firefighters haven’t faced before. At least on this kind of scale." Crews are using hundreds of gallons of water attempting to put these fires out At NAMAD, Mark Bland of S&P Global mentioned that only 50% of fire stations nationwide are equipped with the training and resources to fight these EV fires Amazon has pulled the plug on its ‘Scout’ autonomous delivery robot program after three years citing the program was not meeting customer expectations Cooler sized robots on 6 wheels would carry packages directly to consumers homes and open its side hatch to allow the packages to be received The program was about 3 years old and began autonomous deliveries in sidewalks communities in Seattle before expanding the program to Southern California About 400 amazon employees were assigned to the project and will be offered jobs in other areas of the company This is a sign that CEO Andy Jassey is reprioritizing funds as sales growth begins to slow from record levels Good news could be bad news when it comes to the job report releasing today During his talk at NAMAD, Jonathan Smoke, Chief Economist at Cox Automotive, mentioned that historically low unemployment reports would continue to push the fed to raise interest rates at their aggressive pace. Economists surveyed by Dow Jones expect the report, due out Friday at 8:30 a.m. ET, will show that payrolls increased 275,000 in September, while the unemployment rate held at 3.7%. At least as important, estimates are for average hourly earnings to increase 0.3% month over month and 5.1% from a year ago. One major concern is that both job growth and wage growth are outpacing inflation, leading to supply side recession. The hope is that if jobless claims rise, less aggressive spending would hit the market. “I don’t think the Fed is going to pivot or pause or anything of that nature before the end of the year, ce
Thu, October 06, 2022
NAMAD President Change, Self Driving Stalls, Heavy EVs, NY Making Chips
Shoot us a Text. This Thursday we’re coming to you from the annual NAMAD membership meeting in Miami, FL where a change in leadership was announced last night. We’re also talking about the continued struggle of self-driving tech, as well as the new weight requirement for roads given the rise in EVs, and a massive semiconductor plant coming to Syracuse, NY. NAMAD President Damon Lester stepped down and assumed the role as Vice Chair of the Board. After a 1 year executive search process, Hugene Fields will be stepping up. Self Driving cars still stalling out in go to market strategy One of the hardest things to figure out is something called “unprotected left turns,” or left turns when navigating oncoming traffic. A McKinsey & Co. report states the industry has currently invested over $100bn in R&D for self-driving technology. “You’d be hard-pressed to find another industry that’s invested so many dollars in R&D and that has delivered so little,” Anthony Levandowski says in an interview. “Forget about profits—what’s the combined revenue of all the robo-taxi, robo-truck, robo-whatever companies? Is it a million dollars? Maybe. I think it’s more like zero.” Transportation companies say that EV vehicles are too heavy for roads “[C]ars and trucks climbed from an average of 3,200 pounds (1,451 kilos) to 4,200 pounds over the last four decades, according to the Environmental Protection Agency.” Currently, less than 1% of vehicles on US roads are EVs, but with aggressive sales targets, it will be harder for transporters to meet highway weight requirements. “‘The truth is we will not be able to move as many electric vehicles under the current weight limit. That could mean more trucks on the road, delays in orders and increased costs,’ said Sarah Amico, executive chairman of Jack Cooper, among the largest car haulers in North America.” Transporters are asking for an additional 10% weight limit, giving them the ability to carry the same number of vehicles, if they are all EVs Semiconductor chips coming to Syracuse (Half of ASOTU team just cheered) Largest private investment in NY history, up to 100B to build a mega complex in Syracuse’s northern suburbs Micron would build up to four separate semic
Wed, October 05, 2022
Wheels Up To NAMAD, Elon (still) Buying Twitter (Maybe), Non Auto Minds Joining Auto
Shoot us a Text. Welcome to Wednesday as we get ready to cover the 2022 Namad Annual Meeting. We’re also talking about Elon holding true to his original offer for Twitter, an outside automotive tech joining the automotive ranks to help improve auto tech, and a big step forward in home connectivity. In another turn of events, Elon is in for $44mm again Twitter shares jumped 12.7% to $47.93 before trading was halted for the second time, while Tesla shares rose by about 2.4%. Deal is supposed to close at the originally agreed upon $54.20 price Twitter employees, caught by surprise in the middle of meetings on Tuesday, expressed disbelief in tweets. "I am sitting on 2023 company wide strategy readouts and I guess we are going to collectively ignore what's going on," wrote Rumman Chowdhury, Twitter's director of machine learning ethics, transparency and accountability. Take away: Anyone want to guess what impact brand has on value? Salesforce VP of Engineering joins auto digital retailing leadership team “Dan’s proven track record of building and maintaining top-talent culture at Salesforce is truly impressive and unique in any size of engineering organization,” said Andy Park, CEO and Founder of CarNow. “His experience combined with our organizational growth tees up an exciting next chapter at CarNow as a technology leader.” Jemiolo led the team responsible for integrating Slack into Salesforce following the acquisition Take away: We are seeing more and more enterprise tech enter and be connected to auto, both the tech and the people. Matter 1.0 is finally ready for launch, changing smart home connectivity Matter is a protocol to connect compatible devices and systems with one another. Smart home devices should be secure, reliable, and seamless to use. And with Matter, they are. Layman's terms: the smart home industry just agreed on a data centricity The first rollout also includes Matter controllers and bridges. These are devices that already connect and communicate with other devices in the smart home ecosystem. Take away: Sounds a bit familiar with what auto data sources are trying to figure out. Maybe another industry we can look to for guidance. Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: <a href='https://www.linkedin.com/company/asot
Tue, October 04, 2022
Reflecting on the Agency Model w/ Special Guest Steve Greenfield, Retail Real Estate Revival
Shoot us a Text. This Tuesday we are talking about the drop in vacancies in retail real estate. We also welcome long-time collaborator with ASOTU, Steve Greenfield, to discuss October’s Auto Intel Report. Brick and mortar retailers are coming back from the pandemic with surprising strength as recent numbers reveal U.S. retail vacancy fell to 6.1% in the second quarter, the lowest level in at least 15 years, while asking rents for U.S. shopping centers in the quarter were 16% higher than five years ago, according to real-estate services firm Cushman & Wakefield. More stores opened last year than closed for the first time since 1995 and analysts at Morgan Stanley expect the trend to continue even in the face of a looming recession This is a result of a major pull back in new retail space construction due to the digital revolution, now the table is leveling Brookfield Property Group, one of the biggest mall owners, said that spending at its 132 U.S. malls is 31% above pre-pandemic levels The U.S. now has nearly 22 square feet of retail real estate per person, more than any other country and more than double the per-capita square footage of France and the U.K.—and nearly eight times China’s rate The Agency model is a huge topic of conversation in Retail Auto and there are few approaching it with as much measured thoughtfulness as Automotive Ventures founder Steve Greenfiled. He shares his observations and encouragement to the Dealer body in the recent issue of his monthly Auto Intel Report you can get for free from his website www.automotiveventures.com Larger groups noted as being positive about the shifts as they see themselves as the distribution model: “receptivity to the agency model increases, while the concern goes down. This is due to the fact that bigger groups are more likely to be the preferred channel of distribution (vs. smaller players), will have more say in strategic decisions, and have a greater influence and "voice at the table" to partner with OEMs.” Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.insta
Mon, October 03, 2022
Big Trucks Eject the Battery, Auto Stocks Take One On The Chin, Creepy Tracking Survey
Shoot us a Text. Welcome to the first full week of making trouble in Q4. Today we talk about why big truck ICE engines aren’t going anywhere. We also discuss last week's big stock hit to automakers and sellers, as well as a survey that goes deep on sentiment toward ad tracking. Big news for big trucks…they aren’t going anywhere. As EV mania continues to envelop the retail automotive industry, heavy duty trucks are the only segment whose gas and diesel powered engine investment continues by Detroit’s big three. This is a hugely profitable segment. According to Automotive News, “Ford Motor Co. says it gets more revenue from Super Duty sales alone than Southwest Airlines, Marriott International and many other Fortune 500 companies generate.” Ford, Chevy, and Dodge all have new technology rolling out in their biggest baddest trucks over the next year with everything from more powerful engines, built-in 5G for over the air updates, and back up cameras that work with the tailgate down These are the true “work trucks” which are used in construction, mining, emergency and utility work and there isn’t much interest in EV technology due to demanding conditions and reliability for such heavy use During a media reveal of their new Super Duty line at Churchill Downs, Ford CEO Jim Farley said, "If you're pulling 10,000 pounds, an electric truck is not the right solution. And 95 percent of our customers tow more than 10,000 pounds… This is a really important segment for our country and it will probably go hydrogen fuel cell before it goes pure electric." Auto stocks took a formative blow late last week with Carmax leading the way with a 25% drop in its share price due to a big miss on earnings forecasts and a turbulent outlook for the used car market. Revenue of $8.1 billion was up 2% over YoY but below the analyst estimate of $8.5 billion. Earnings per share were $0.79, down from $1.72 a year ago. CarMax shares down 49% year to date CEO William Nash said, "Macro factors, including vehicle affordability that stem from persistent and broad inflation, climbing interest rates, and low consumer confidence, all led to a marketwide decline in used auto sales." "Obviously, consumers are having to make decisions ... I just think they are prioritizing their spend a little differently," Chief Executive Officer William Nash told analysts Carmax has gained market share over competitors such as Carvana Shares of GM and Ford were down about 5% in morning trade, while AutoNation Inc , Lithia & Driveway and Group 1 Automotive fell between 7% and 10%. <
Fri, September 30, 2022
Forecast Friday, Toyota Doesn’t Mince Words, NY ❤️s Cali
Shoot us a Text. We’ve got that Friday feeling as we give a full rundown of Cox Automotive’s Q3 Forecast report. We also talk about some very clear messaging coming from Toyota’s Dealer meetings happening in LasVegas, as well as NY’s efforts to be like California when it comes to EV rules. Toyota shared internal data related to dealers selling over MSRP and also sends clear message of Dealer advocacy in Dealer meetings in LasVegas After a broad study of data from the last year, Toyota said that Dealers selling vehicles over MSRP have doubled their profits, but lost market share Dealers who sold at or under MSRP have TRIPLED profits and gained 16% market share collectively Akido Toyoda also made it very clear that the company will not be pursuing any future that doesn’t involve their Dealer network as the primary method of selling and servicing of their vehicles which was met by a rousing round of applause from Dealers In a press conference following the meetings, Mr. Toyoda said not only is California’s goal of 100% EVs by 2035 not realistic, but added that meeting the 50% mark by 2030 would be ‘very difficult.’ Electric vehicles “are just going to take longer than the media would like us to believe,” Toyoda told the dealers during their meeting. He vowed to offer the “widest possible” array of powertrains to propel cars cleanly. “That’s our strategy and we’re sticking to it." New York Governor Kathy Hochul is in a hurry to follow in Gavin Newsom’s footsteps to adopt California’s plan to require all new vehicles sold to be EV or Plug in Hybrid vehicles by 2035 68% EV or Hybrids by 2030. By 2035 only allows 20% to be plug in Hybrids Hochul said in a statement that she has directed a state environmental agency to propose and finalize rules adopting California's plan setting yearly rising zero-emission vehicle rules starting in 2026 that phases out gasoline-only new car sales by 2035. There will be a public hearing before rules are finalized Cox’s Q3 Industry Insights and Sales Forecast Call which included ASOTU Alum Chief Economist Jonathan Smoke and Senior Economist Charlie Chesbrough delivered a barrage of insights into the shifting landscape of the industry heading into Q4. Here are some highlights Consumer Sentiment had been improving until last week Fastest and largest increases in interest rates since 1981 resulting in affordability cris
Thu, September 29, 2022
The Pop Culture and Publicly Traded Episode
Shoot us a Text. We’re thankful for Thursdays as we give you a fly over of all things pop culture in this unique episode of The Automotive Troublemaker. We also talk about some motorized momentum in new mobility stocks as of this week. The Porsche IPO has topped initial expectations with its final offer price coming in at the very high end of the initially proposed price range, settling at $79.93. The list price brought in over $9.1 Billion dollars making it Europe’s largest IPO in a decade Puts Porsche’s valuation very close to the total market cap of VW Group which owns VW, Audi, and several other brands The funding will provide a boost to the company’s electrification plans and proves the brands loyal following with such a strong showing in overall challenging market conditions Reuters reports Harley-Davidson spun off its electric motorcycle division in a SPAC deal creating the first publicly traded electric motorcycle company in the U.S. Yielding $1.77B in cash, Harley Davidson has retained 74% ownership in the brand LiveWire currently produces 2 motorcycles at a starting price of $16,999 Tesla’s annual AI Day is tomorrow where the likely star will be the company’s Optimus humanoid robot. Tesla revealed the project last year and is promising to show off an actual working prototype of the bot which is intended to replace humans doing dangerous, repetitive, or boring tasks. As designed, the 125-pound, battery-powered, human-size robot will move with the aid of 40 mechanical actuators, including 12 in its hands for "human-level" functioning. It'll lift 150 pounds and perceive the world using eight cameras. Tesla's design showed it using the same computer that controls Tesla's cars. Tesla will also be featuring updates to its FSD capabilities and live streaming the entire event on its YouTube page Our friends at Retail Wire are reporting Walmart has moved to the metaverse. The retail giant on Monday launched two immersive experiences on the Roblox gaming platform. Walmart Land and Walmart’s Universe of Play are the retailer’s first attempts to connect visitors with virtual merchandise (AKA verch) that have real life matches on walmart.com and in the chain’s stores. While no real money will be changing hands, users can earn coins to excha
Wed, September 28, 2022
1 YEAR of this Podcast 🎉, NADA Cites The Automotive Troublemaker, Boots On The Ground Report From Florida
Shoot us a Text. It is a Wednesday to remember as we celebrate the one year anniversary of this podcast! We also talk about NADA’s submission to the FTC that cited us, as well as covering the live situation in Florida as Hurricane Ivan closes in. One year ago TODAY, we just hit the record button and decided to start this podcast. Play a clip, tell the story 266 episodes The Automotive Troublemaker was cited in NADA’s official submission to the FTC regarding proposed regulations surrounding pricing transparency. Our interview with Jamie Oldershaw from September 8th covered the overwhelming positive reviews that dealers received from over 8 million consumers on its site Hurricane Ian is closing in on the Florida coast and Dealers are in full execution of precautionary measures. Asbury and Carmax had already closed over 20 stores yesterday. Most other Auto Dealers are heeding evacuation warnings as they prepare for potential power outages and property damage. Clearing drains, moving inventory to high ground, preparing large backup generators to reopen stores in the event of power outages First major hurricane since 1912. Then the population was 130k, today it’s over 3.2M Over 2M people on evacuation orders Tampa Airport is fully closed Disney is closed Brian Kramer is at the Ritz Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, September 27, 2022
BAD TikTok, EV Dealership Experience Preferred, Tesla’s Used Car Biz, NFL Punts the Pro Bowl
Shoot us a Text. This Tuesday we’re all about the changing season as we talk about popular opinion looking for a dealership when buying that first EV. We also talk about the rapid growth of Tesla’s used car business, as well as the NFL replacing the Pro Bowl with something much more 2023. New study finds that 74% of EV intenders would prefer to buy an EV from a Dealership as opposed to purchasing from an auto manufacturer or third party. Participants who already own an EV, EV intenders and younger buyers are more likely to prefer purchasing directly from an automaker. However, a majority of each group still prefers buying from a dealership The 2022 EVForward Dealer DeepDive is conducted as a part of advisory firm Escalent, works to capture the attitudes, behaviors and opinions of the next generation of EV buyers. Shoppers overwhelmingly want a combination of an online and in-person sales process On-line features must included good information about the vehicle, options to arrange financing and scheduling a test drive Regarding service, “ "People are much more comfortable taking their vehicle to a dealer than they are, for instance, having a mobile service unit coming out and doing it in their driveway or garage," said K.C. Boyce, Escalent's vice president of powertrain innovation and energy transformation Tesla’s used car business is claimed to be as big as publicly traded used car retailers according to Jimmy Douglas, director of sales and delivery operations at Tesla ‘Most people don’t realize that Tesla runs its own vertically-integrated, nationwide online used car retailer. It’s as big as some publicly traded used car retailers you’ve definitely heard of, despite no Super Bowl commercials or wacky waving inflatable arm flailing tube men.’ More attention was drawn to this from a recent job post by Manager of Used Cars, Alex Liebl for an Associate manager for the Used Car Quality team You can visit Tesla’s Used Car Ordering page FAQ page to browse inventory, view the NF prices, warranty, shipping cost, and estimated delivery dates, and you can also get a price on your trade 145 point inspection and used car warranty 1 yr/10k miles in addition to any remaining balance on new car warranty All photos are stock, no condition reports other than accident verification Say goodbye to the Pro Bowl and hello to Vegas-held “ Pro Bowl Games ” following the worst year for viewer
Mon, September 26, 2022
Toyota Turns Around Its EV Tone, Ford Looks For Blue Ovals, Target Breaking Out The Tinsel
Shoot us a Text. It’s Monday as we welcome our first week of Fall talking about Toyota’s changing tone on rapid EV adoption. We also talk about the badges which may be driving Ford’s supply hold ups, as well as Target going all in on holiday season…like now. Toyota is subtly shifting its tone toward EV adoption in response to some investors and environmental critics who say the company isn’t doing enough to quickly mass adopt EV’s Toyota has been one of the most cautious critics of broad statements and stated manufacturing shifts toward BEV adoption citing concerns in the global ability to produce enough battery materials to support the move Danish fund AkademikerPension, which manages around $19 billion on behalf of academic institutions and school employees, has battled with Toyota for almost two years over what it sees as the auto maker’s opposition to measures promoting EV adoption … saying EV skepticism was “jeopardizing Toyota’s valuable brand to the detriment of shareholder interests.” Akido Toyoda, Toyota’s chief, is a prominent voice of caution about EVs and questioned whether the vehicles are as environmentally friendly as advertised and expressed doubt that consumers really want them Ford recently issued an earnings warning which reduced its earnings by over $1B and also announced there will be between 40-45k vehicles awaiting parts to be completed Although the company isn’t talking openly about it, sources confirmed with the Wall Street Journal that it is a lack of Ford’s iconic blue oval badges and nameplates which specify the models which are causing a large portion of the holdup The company has considered options such as 3D printing the badges only to hold back over quality concerns The shortage is linked Tribar Manufacturing, a company in the Detroit suburb of Wixom who has a large a-list of auto manufacturer clients and had a recent high-profile shutdown over concerns that they released high amounts of toxic chemicals into local waterways Is Target responding to Walmart’s October push into the holiday sales season basically moving Black Friday to early October? Last week we reported Walmart’s rolling out of its “no concerns” return options starting on October 1st. Now… In an announcement, Target said they are kicking off its holiday season push with its biggest ever “Deal Days”
Fri, September 23, 2022
Doing the Ford Shuffle, Tesla Low Key Recall Dance, Walmart Making It Seem Easy
Shoot us a Text. It’s time for that Friday Feeling as we talk about Ford’s significant executive reorganization. We also cover Tesla’s recall that Elon Musk doesn’t like calling a recall, as well as Walmart’s move to be the easiest place for Christmas shopping this year. Ford announced a sizeable reorganization of it’s executive team yesterday shifting some experienced Ford execs and adding new talent from other industries to its ranks Long time product and purchasing chier, Hau Thai-Tang, was a part of the announcement as CFO John Lawler will oversee a remake of Ford’s global supply chain operations until a replacement is found Doug Field, who was chief advanced technology and embedded systems officer, becomes chief advanced product development and technology officer. In addition to his current duties overseeing EVs and software, he'll now be in charge of design and vehicle hardware engineering. From outside the industry, former VP and Global head of software at HP, Roz Ho will be Ford’s Chief Connected Vehicle Software officer Rob Bedicheck who comes from a background including Apple and Intel will be the Executive Director of Platform Architecture Ford CEO Jim Farley said "Developing and scaling the next generation of electric and software-defined vehicles requires a different focus and mix of talent from the accomplished Ford team and many exciting new colleagues joining our company." Tesla recalls over a million vehicles in the US due to abnormal variations in response to window reversal during pinch detection The National Highway Traffic Safety Administration stated that the recalled vehicles’ window automatic reversal system did not meet the standards of federal motor vehicle safety. The NHTSA said a closing window without the proper automatic reversing system may exert excessive force by pinching a driver or passenger before retracting Tesla quickly corrected the issue via an over the air software update CEO Elon Musk tweeted, "The terminology is outdated & inaccurate. This is a tiny over-the-air software update. To the best of our knowledge, there have been no injuries," he said. Walmart is positioning itself to not only be the lowest price retailer for the Christmas season, but also the easiest place to shop as it rolls out their ‘no concerns’ return options for those looking to get an early start on Christmas shopping These
Thu, September 22, 2022
Fed Getting Feddy, An Entire Tesla Neighborhood, and Hydrogen Advocates
Shoot us a Text. This Thursday we’re doing a fly over of yesterday's Fed announcement on interest rates. We’re also talking about a massive Tesla powered neighborhood, as well as a pretty solid case for hydrogen. Yes, hydrogen is still in the running. The Fed indeed raised interest rates by another .75% yesterday marking the 5th rate hike this year and there is no sign of the increases slowing down. Fed Chair Jerome Powell announced the rate hike while adding that rates hikes will continue until inflation is reigned back in as they forecasted another 1.25% points in hikes throughout the end of the year noting that a ‘soft landing’ for the economy was not likely To review the first hike of .25% was on March 17th of this year when the base rate was zero. From there we saw hikes in May, June, July, and yesterday bringing the rate to its current 3.25 The rate was initially brought to zero in 2008 in an unprecedented move to stabilize the economy and stayed there for over 7 years before slight increases began An entire neighborhood of homes equipped with Tesla solar roofs and powerwalls has been steadily moving forward and is kicking into high gear. A partnership with Brookfield Asset Management and Dacrawith is making this 12,000 home project a reality as Tesla has quietly ramped up installation crews as they move toward the first Tesla solar neighborhood called Easton Park located in Austin, TX There are already many homes built that are equipped with the ‘tesla roof package’ and thousands more are being sold and built Easton Park resident Mario D said it was far cheaper to have the roof installed when the home was built and also added that the energy saving habits he already deploys will turn the roof’s power generation into a passive income stream as he sells power back to the grid Tesla has also started a company to create ‘virtual power plants’ that sell power to the state of Texas Markus Heyn, the head of mobility for Bosch says we need to lean on experience as he warns that we need an alternative to lithium-ion batteries in order to avoid a supply disruption. He mentions Elon Musks limited view of hydrogen fuel cells as Musk shot down the idea that they could be a viable option because they aren't as efficient as BEVs. However, Heyn says this is an engineers view of a soluti
Wed, September 21, 2022
GM and Hertz Going Steady, Lithium Launches, Interest Rates v. Purchasing Power
Shoot us a Text. Welcome to Wednesday as we’re covering an announcement by GM and Hertz to move some serious EV volume through rental fleets. We also talk about what the lithium supply is looking like as well as the effects of rising interest rates on Dealers and home owners alike. GM and Hertz announced a joint agreement for the automaker to provide 175k EVs to Hertz rental fleet through 2027 Order will include Chevrolet, Buick, GMC, Cadillac and BrightDrop EVs through 2027 Deliveries are set to begin in Q1 2023 with the Chevy Bolt Hertz is investing to create the largest rental fleet of EVs in North America, with tens of thousands of EVs available for rent at 500 Hertz locations across 38 states. The company’s current goal is for one-quarter of its fleet to be electric by the end of 2024. “It’s exciting that two iconic American companies that have shaped the evolution of transportation for more than a century are coming together to redefine the future of mobility in the 21st century,” said Stephen Scherr, Hertz CEO. Many of the EVs are expected to be deployed in LA and SF due to fast approaching restrictions on ICE vehicles In 2021 Hertz ordered 100k Teslas which are nearing fulfillment EV Demand and supply SNAFUs have pushed prices of the critical component in EV batteries, Lithium, to an all time high Lithium carbonate prices in China, the benchmark in the fast-growing market, hit $71,000 a metric ton, according to price-assessment firm Benchmark Mineral Intelligence. This is about four times as high as a year ago Prices are basically following the Chinese EV market which is exploding Major US automakers have struck deals with lithium producers to secure supply Over 80% of lithium-ion batteries are used for EVs, said Daisy Jennings-Gray, senior analyst at Benchmark Mineral Intelligence. That will increase to 90% in 2030, Benchmark forecasts, up from 40% in 2015. Refining is and will continue to be a major bottleneck in the production of battery grade lithium “I would like once again to urge entrepreneurs to enter the lithium refining business,” Tesla Chief Executive Elon Musk told analysts in July. “There’s lithium pretty much everywhere, but you have to refine the lithium into battery-grade lithium carbonate and lithium hydroxide, which has extremely high purity. So it is basically like minting money right now.” Rising interest rates are seriously affecting real estate purchases, home equity, and wealth building. And remember, most Dealer
Tue, September 20, 2022
Porsche For Sale, Tesla Pulls FSD Team, Etherium Merge Success
Shoot us a Text. Happy Tuesday! It’s like Monday, but less imminent. Today we’re breaking down the upcoming Porsche IPO which is a little complicated. We’re also covering why Tesla deployed their FSD team to work on their Humanoid, as well as the basics of what the Ethereum Merge means for you and the planet. Demand for Porsche IPO is outpacing supply as cornerstone investors move quickly to scoop up large portions of the available shares Basic structure: VW is the selling entity. Public entity will be Porsche AG and its = shares will be split into ordinary and preferred shares. Ordinary shares carry voting rights, preferred do not 455.5 M shares each, totaling 911M (wink) Porsche AG will sell 25% plus one of ordinary stock to Porsche SE (the Piech and Porsche family owned entity) to give them blocking rights Some large investment firms such as T Rowe Price and sovereign wealth funds of Norway and Abu Dhabi are scooping up large quantities of available shares The company is valued around $80B therefore proceeds from the sale are estimated to be about $20B Retail shares will be traded on European exchanges Berlin, Düsseldorf, Frankfurt, Hamburg, Hanover, Munich, Stuttgart Tesla pulls it’s Autopilot team to help the Optimus Humanoid robot team meet an end of month deadline Last night on Twitter, a Tesla owner asked CEO Elon Musk about a fix for Autopilot, and his response included: Note, Autopilot/AI team is also working on Optimus and (actually smart) summon/autopark, which have end of month deadlines The deadline at the end of the month for Optimus is the Tesla AI Day 2, during which the company is expected to unveil its first working prototype of the robot. Tesla also appears to have plans to unveil an updated version of its “Smart Summon” and Autopark features at the event. In another tweet, Musk says “FSD Beta 10.69.2.1 looks good, extending to 160k owners in US & Canada” At one point, Musk said FSD would provide a fleet of 1M robotaxis by year end and now seems to be satisfied with a strong Beta The Ethereum Merge was a complete success in a victory for power consumption as the platforms switch from ‘proof of work’ to ‘proof of stake’ now uses over 95.5% LESS power saving an amount of power equal to the annual consumption of New Zealand The transition, which could have been a massive disaster, went off without a hitch, however still doesn’t address transaction fee
Mon, September 19, 2022
Football Woos Auto Advertisers, Rivian’s Lobby Journey, The Merge Worked
Shoot us a Text. It’s Monday and we have a great week in the works! Today we cover the auto advertisers who are swooning back to the live viewership. We also meet Rivian’s Chief Lobbyist and get into the WSJ comments section, as well as the impact of the much awaited ‘merge’ for the crypto currency Ethereum. Football is back and so are Automotive advertisers as spending jumped over 260% from the week prior according to iSpot.tv data from $6.6M to $23.8M. 75% was allocated to NFL Games Honda and Nissan grabbed the #1 and #2 spots with Honda dropping $8.1M on it’s “Forever Determined” 30 sec spot Nissan’s “60 years in 30 seconds” spot was targeted to college games Hyundai, Chevrolet, and GMC were also on the field with new commercials Hyundai’s 60 second “Chewy” was the fan favorite The Chief Lobbyist at Rivian, Jim Chen, is a former Tesla exec, wears cowboy boots, and is making it his mission to end the traditional model of selling cars. Fascinating story of “the wonky lawyer who produces evidence for his views and talks a lot about free market principles” Cites local Dealers power at the state level as the reason for the difficulty in establishing the D2C model “When you have one person who controls all the marbles, you get marbles when they want to give it to you,” said Don Hall, president of the Virginia Automobile Dealers Association. Mike Stanton, the president of the National Automobile Dealers Association, added that “there are rules in place for a reason.” $5.5B loss for 2022 while delivering 5700 units. Loss of $96,491 per vehicle The COMMENTS: "Dealers and state lawmakers who oppose Mr. Chen’s efforts say that independent dealerships play a critical role in the car-buying process, helping to create competition between franchises that ult
Fri, September 16, 2022
FedEX Falters, Tesla Centers, Uber Gets Hacked
Shoot us a Text. Welcome to Friday! Today we’re covering the drop in retail packages being shipped and what that means for the broader retail economy. We also talk about Tesla's move to larger facilities, as well as the 18 year old that hacked Uber…completely. FedEX is closing locations and parking aircraft after volumes of packages drops significantly, sounding the alarm on reduced retail spending Revenue at FedEx Ground, which mostly handles e-commerce deliveries in the U.S., was about $300 million below company forecasts . Shares are down 19% in off hours trading this morning as CEO Raj Subramaniam, announced actions to reduce costs by freezing hiring, closing 90 FedEx Office locations, parking some cargo aircraft, reducing Sunday ground operations and closing five corporate offices. No layoffs were announced “People are buying less. They are paying more for air travel and other experiences,” said Satish Jindel, president of research firm SJ Consulting Group. Tesla has been showing signs of moving away from small retail boutiques and toward “Tesla Centers” which look and feel a lot more like the Dealership experience. Last year they announced the closing of multiple high-rent spaces but continued hiring sales associates as they looked for lower rent areas to put focus on larger facilities that house service and deliveries to support remote management of the test drive fleet Sources familiar with the matter say there has been success with this strategy and the company is now moving the “Tesla Center” strategy to it’s Chinese market Investments in the service experience have been increasing as CEO Elon Musk has made improvements to service a primary goal for the company who is delivering record numbers of vehicles Uber suffered a systemic hack by a teen . Employees thought it was a joke. The alleged hacker, who claims to be an 18-year old, says they have administrator access to company tools including Amazon Web Services and Google Cloud Platform. The New York Times reports that the ride-hailing business has taken multiple internal systems, including Slack, offline while it investigates the breach. The hacker who goes by the Telegram handle “Teapot” posted the message, “I announce I am a hacker and Uber has suffered a data breach,” on slack and was responded to by employees with popcorn emojis, the “It’s happening” gi
Thu, September 15, 2022
Ford’s EV Dealer Model Plans, Rail Strike Averted, Walmart’s Virtual Try-On
Shoot us a Text. We’re back in the saddle talking about the ongoing Ford Dealer meetings in LasVegas regarding the shift to Model e. We’re also talking about the rail strike that may never happen, and WalMarts new tech that allows users to upload some ‘personal’ photos to virtually try on clothes. Ford Dealer meetings in Las Vegas this week have dealers driving EVs and reviewing their options to remain eligible to to sell Ford EVs By 2023 Ford is requiring Dealers to invest from $500k to 1.2M dollars if they want to remain “Model e” certified There are 2 levels, “Model e Certified” and “Model e Certified Elite”. Both levels require no haggle, one-price models for all EVs The investment money will mostly go toward the installation of fast chargers Certified: 1 public facing charger Certified Elite: 900k initially to 1 public and one internal fast charger, with a second public facing charger soon after Sam Pack, CEO of Sam Pack Auto Group in Texas, said he plans to have each of his 4 Ford dealerships become Certified Elite. "The message I heard was one of optimism. Yes, there's a lot of questions that have not been answered. But we'll work through those. This is a learning journey." From Jim Farley’s LinkedIn Newsletter post yesterday, Sept 14th: Our dealer network is our secret weapon, comprised of entrepreneurs who can deliver for customers all the way through the ownership experience. These are big changes, but we’re up for the challenge. With change comes progress – and success. After 20 consecutive hours of negotiations, a U.S. railroad strike has been averted as a tentative deal is reached A strike would have caused major problems for OEMs and Dealers as rail transport is a primary means of moving inventory around the country Joe Biden thanked both unions and rail companies “for negotiating in good faith and reaching a tentative agreement that will keep our critical rail system working and avoid disruption of our economy.” If a deal wasn’t reached, the Friday deadline for a walkout could have been halted by Congress under emergency economic regulations Walmart's new “Be your own model” experience allows consumers to use their app to upload a full body image and browse what over 270k clothing items look like on them Acquisition of virtual try-on platform Zeekit last year is powering the experience Users upload a full body photo with tight fitting shorts a
Wed, September 14, 2022
ASOTU CON Recovery
Shoot us a Text. We got home last night tired, but energized. The past 72 hours have been whirlwind of content, connections and community. So today, we press pause and take a refresh, thinking back about everything that ASOTU CON meant to us. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, September 13, 2022
Live From ASOTUCON Tuesday 2022 /w Darren Doane
Shoot us a Text. Last day of ASOTUCON! Live with Darren Doane Get the Daily Push Back email at https://www.asotu.com/ Rock with us LIVE at ASOTU CON! Tickets: https://www.asotucon.com JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back... Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotives... Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read
Mon, September 12, 2022
Live From ASOTUCON Monday 2022
Shoot us a Text. We are locked and loaded at ASOTU CON this morning as we talk about the conversations and energy we’re feeling from the ground. We also talk about Chevy’s first 30k EV Equinox and what it could mean for overall affordability. Chevy announces the starting price of its 2024 Equinox EV is coming in at a $30K price point 250-mile driving range, with higher-priced trims offering up to 300 miles. GM's most affordable vehicle powered by the Ultium battery platform which is the same that powers the Silverado, Lyric and Hummer 70 miles of range in 10 minutes. Bolt is currently 90 miles in 30 minutes Larger interior design with more premium feel The Equinox is going to be a game changer for General Motors and for Chevrolet," said Walker Starling, a Chevy dealer in Orlando. "It's going to be a pivot point where the market responds favorably. The price point and the packaging are going to surprise people." Sales will begin in the Fall of 2023 with a mid level version as the $30k LT1 base model won't be available when sales begin Chevy Bolt current starting price is $32,495 and has 259-mile range, but the 2023 model will cost $6,000 less to make room for the Equinox. Get the Daily Push Back email at https://www.asotu.com/ Rock with us LIVE at ASOTU CON! Tickets: https://www.asotucon.com JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www
Fri, September 09, 2022
The Queen’s Cars, Wholesale Slips, Brand vs Merch
Shoot us a Text. We have that ‘Friday feeling’ as we’re prepping to roll onto ASOTU CON. But first, we’re talking about the Queen’s epic taste in cars, the wholesale price index in August seeing some sinking numbers, as well as a bold move by retailer Lowes in its reorganizing marketing and merchandising. Queen Elizabeth II, the longest-reigning British Monarch passed away at age 96 years old surrounded by her family yesterday and will be remembered by millions across the globe for many things. One of them is a great, and quite tasteful car collection Ruled for over 70 years beginning when her father died suddenly in 1952 while she was on a trip in Kenya and was flown home. She didn’t realize that she was to immediately become queen. Her coronation was the first international live TV broadcast To the cars: Queen’s first preference always steered toward British off-roaders throughout and even before her reign. Perhaps the first was an Austin K2/Y, which she would have used during her World War I She loved Land Rover Defenders. Her favorite being a 2002 Defender 110 TD5 When the current-gen Defender rolled out, Land Rover gifted a Defender 130 to the British Red Cross for her 75th anniversary as queen in her honor to commemorate her long-standing relationship with the vehicles Her fleet included several Bentleys, including Bentaygas and Arnage-based state limousines, including her golden jubilee steed from 2002 Others included Rolls-Royce Phantom-based limousines, Rovers, Vauxhalls, and Aston Martins By law, she was the only driver in England who didn’t need a license Elizabeth's eldest son, Charles, 73, formerly the Prince of Wales, has immediately become the King of England Wholesale Used Car prices dropped 4% in August , the sharpest decline this year according to Cox Automotive data which is adjusted for mix, mileage and seasonality. They are still 8.4% higher than they were in August of last year According to Black Book , pricing has consistently depreciated for the last 6 weeks Lowe’s fires its CMO and moves marketing under merchandising head Bill Boltz, executive vice president of merchandising Following 2 quarters of decline from YoY comps, CMO Marisa Thalberg, chief brand and marketing officer at Lowe’s, has left the home improvement retailer as part of a corporate reorganization Under Ms. Thalberg, Lowe’s moved
Thu, September 08, 2022
Primary Care, Special Guest Jamie Oledershaw of DealerRater, FTC Comments.
Shoot us a Text. We have a special show for you today as we welcome special guest, Jamie Oldershaw, GM of Dealer Rater. We also talk about changes to primary care, as well as your closing window of opportunity to weigh in on the new FTC proposed rules for Dealers. How will the reputation of primary care services in the US change as a result of the well-known, new-entrants? This is a key question following CVS’s recent announcement of CVSs definitive agreement to acquire Signify Health in an all-cash deal valued at around $8 billion. Signify uses proprietary technology and analytics to support doctors, nurse practitioners and physician assistants who make house calls to 2.5 million patients across all 50 states Care providers spend an average of 2.5x more time with patients Rivals Walgreens, Walmart, and Amazon are all making moves into the same space Today we welcome Jamie Oldershaw, GM at Dealer Rater and VP of Reputation Strategy at Cars What is the overall sentiment you are seeing across dealer reviews on and off platform? Are there %s that you can share? There are 4 days left in the FTC commenting period and we need to mobilize NOW. Currently 7,761 Here are the most recent: Anon: We have too many forms as it is. My goal, always, is to make the purchase experience as easy and uncomplicated as possible for my customers. We are a franchise dealership in a small town and repeat customers are a large part of our business. More forms, and complicating the purchase process will simply make things worse for the customer. The customer's interests are protected by truth in lending, buyer's guides, privacy rights, credit disclosures, approval/declination letters, etc. Any issues seemingly addressed in the above regulation are already covered, established and in place. Bibich Zabaleta: To the FTC.I am not anonymous! My Name is Bibich Z. I've been a car enthusiast before I could even drive! I owned enough vehicles that it has become a joke that I rotate vehicles every 4 months. I even started renting out vehicles on Turo which has had me visiting dealers even more regularly. Your proposed rules are !!!"DESPERATLY NEEDED"!!! in fact I would state that they are only a beginning! Saying that we need dealers to state the true price of a vehicle is mind boggling how have we let this go on for so long! The fact that NADA and dealers are trying to sabotage this proposal with "anonymous against" statements shows that this needs to be concrete and enforced by the FTC! thank you. LEAVE YOUR COMMENT HERE : Suggestions for comments: Don’t be anonymo
Wed, September 07, 2022
We Got the Power, Should Service CSIs Die, Return to LIVE Apple Events
Shoot us a Text. Holiday week means it’s already Wednesday as we give a power purview from across the spectrum of uses. We also talk about the unintended negative effects of service CSIs, as well as the return to Steve Jobs’ Theater for the latest Apple event in Cupertino, CA. It’s all about the power, here are four quick shots of relevant news about electricity California experiences several temporary power outages in the SanFran Bay area as Gavin Newsom tells residents there were none. Operators ordered a Stage 3 Alert, the highest level before rolling blackouts, for residents to curb usage immediately. Residents reacted and they were able to avoid the major repercussion Tesla is in development of a dry-coating technique for battery cells which are likely to reduce the cost of its Model Y’s 4860 battery back by $5500 or half. This would reduce the cost of the vehicle by almost 8%. This is an important step to reach their production goals of 30M teslas by 2030. Just over a year after announcing a full lineup of BEV’s by 2025, Toyota has finalized plans to create its own battery. “Through this integrated development of vehicles and batteries, we aim to reduce the battery cost per vehicle by 50 percent compared to the Toyota bZ4X in the second half of the 2020s,” Toyota’s Chief Technology Officer Masahiko Maeda told automotive journalists This follows Toyota’s recent announcement of a $2.5B investment in an N.C. plant and another $10+ billion by 2030 Save your crab shells , they could be a valuable source of energy for your next car Are Service CSI scoring practices actually hurting the overall customer experience? New research shows that turnover, high stress, and savvy consumer leveraging may be indicating time for an overhaul In an annual survey conducted by consulting group, Ducker Carlisle of service advisers, manager and technicians surveys on behalf of auto manufacturers, CSI came up often among the 10,000 surveyed Examples of employees getting notifications of poor surveys during work and off-time demotivates and adds stress. Often times, CSI scores can be the result of situations outside the individual’s control Close tie to pay plans comes up often One suggestion to help curb this is to lean on third party mystery shops Apple’s new product launch event is today at 10am PST and is likely to feature ne
Tue, September 06, 2022
The Biggest Risk, Easiest Charge, and A Snapshot from 100 Years Ago in Rochester NY
Shoot us a Text. This Tuesday we’re taking a look into the future of Dealer threats, the past of auto pricing, as well as talking about the now when it comes to new EV charging infrastructure pop ups. Automotive Ventures Retail Risk Assessment (AVRRA) is worth your attention Areas covered: OTA Updates, servicing of vehicles, consumer expectations, software subs, EVs, new sales models, margin compression, direct selling/agency, F&I regulation, consolidation, consumer privacy, autonomy, OEM tech influence, big tech players, build to order, vehicle subscription “AVRRA’s goal is to be able to work closely with the dealer body to develop a roadmap for action, to prepare for and neutralize some of the bigger threats exposed. We hope that monitoring these trends on behalf of the industry will allow participants to be better informed and prepared for the future. “ Take away: Check out the full report here and subscribe to AV for free Recent announcements from retailers Starbucks and Ikea to install banks of chargers at some locations mark a potential shift in expectations of the driving/charging experience Charging availability is one of the biggest hurdles to EV adoption according to recent studies released by CDK and more retailers are incorporating charging infrastructure into their physical locations Walmart and Target have chargers at over 100 locations each Starbucks announced a partnership w/ Volvo in March to install 60 fast chargers from Seattle to Denver IKEA announced a partnership w Electrify America to install fast chargers at 25 locations across 18 states A 100 year old newspaper auto ad shows just how much has changed in the manufacturer count, and also how much more expensive a car is today, yes we adjusted for inflation. Twitter user Zerin Dube @speedsportlife tweeted a photo of a sales page in the Democrat & Chronicle from 100 years ago listing 22 manufactures and prices of their various models. Only 3 OEMs remain from the list, Buick, Cadillac, and Chevrolet None of the deale
Mon, September 05, 2022
A Little Labor Day History Lesson and the #ASOTUhotdogchallenge
Shoot us a Text. Sales teams are off and running and fixed ops has their feet up on a couch, and we couldn't help fire off a quick Labor Day pod! Have a couple laughs, learn a bit of history, and join us in a LinkedIn grilling challenge. Have a great day and go serve someone! -Paul & Kyle Get the Daily Push Back email at https://www.asotu.com/ Rock with us LIVE at ASOTU CON! Tickets: https://www.asotucon.com JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, September 02, 2022
Cali Tells Residents to Unplug EVs, Netflix Goes Lux For Ad Buyers, Time to Edit Those Tweets
Shoot us a Text. Welcome to Friday, friends. Today we share what we’ve been learning from talking to Dealers all week. We also cover California’s power shortages, Netflix taking the expensive route for advertisers, and the much anticipated ‘edit tweet’ button. What were learning by talking with so many Dealers and Industry Partners this week California asks residents not to charge their EVs the day after announcing all vehicles must be EV only by 2035 The American Public Power Association and state energy regulators are asking people to turn thermostats up to 78 degrees or higher and to turn down how much they’re charging their EVs, especially during 4 and 9pm State officials point to heat wave and remind people this is normal for California Governor Gavin Newsom and other state officials are also backing a plan that would allocate $5 billion to maintain the current grid instead of making it better. The plan include relying on fossil fuel-powered generators to shore up the grid The Times of SanDiego reports that Members of California’s Air Resources Board continue to question the practicalities of their staff’s proposal to ban gas-powered vehicles, raising concerns over challenges in buying and charging electric cars in addition to affordability and equality concerns. Take away: Netflix is taking big steps toward launching its ad supported product and it isn’t going to be cheap for advertisers Execs from Netflix and Microsoft (who is the tech partner to support the ads) met with buyers last week are are planning to charge $65 CPM which is substantially higher than other platforms They want to get it up to $80 due to their proposed ability to master targeting Asking for a one year commitment from buyers, similar to traditional TV buys and is limiting spend to $20million per year to avoid users seeing the same companies advertise over and over Targeting 4 mins of 15 and 30 second ads per hour which is less than other streaming platforms and much less than TV which can be as high as 23 mins per hour Launch for the new service is slated for early 2023 Take away It’s time to edit those tweets as Twitter rolls out widespread testing of the new editing function t
Thu, September 01, 2022
A 10 Year Permit Process for EV Minerals, New Vehicles Sales Got Gains, a $30k EV Battery Replacement
Shoot us a Text. Happy Thursday Troublemakers. Today we are talking about the longest permitting process ever and why it needs to change if EV Automakers will be able to keep up. We also talk about the premium price that is about to come with Netflix new ad service, as well as a fact-checked $30k EV battery replacement. Inventory shortage easing as new vehicles sales for Kia and Hyundai as they see their first YOY growth since Summer of 2021 Kia, with the lowest day's supply of vehicles, according to Cox Automotive data, said it set an August record with 66,089 deliveries, signaling the company's lineup continues to churn at a high rate. S&P Global Mobility last week reduced its forecast for U.S. auto sales in 2022 to 14.1 million, from 14.6 million as recently as July. August marked the 10th consecutive month that retail inventory closed below 900,000 units, J.D. Power and LMC Automotive said. August was the fourth consecutive month with incentives below $1,000. An extra selling day (removing Sundays) may have been a contributing factor to the growth. Ford and Rivian separately petitioned the US Dept of the Interior to speed up the permitting process for EV minerals essential for domestic battery production The letters urge the Department to restrict the permitting process to no longer than three years. The current process can take as much as ten "Today's lengthy, costly and inefficient permitting process makes it difficult for American businesses to invest in the extraction and processing of critical minerals in the United States," Chris Smith, Ford's chief government affairs officer, said in a letter to the department.” Smith continues, “ "In contrast, Canada and Australia have adopted mineral permitting policies that enable producers to complete the process in two to three years, while maintaining stringent environmental standards.” Requested use of public funds for geo mapping and otherwise identifying mineral deposits across the US was also mentioned A $30k Dealership quote for a battery replacement circulating via a FB post on a 2012 Chevy volt was fact-checked by USA Today …and its real The post reads ““A Chevy Volt, with just 70,000 miles, needed a new battery and some
Wed, August 31, 2022
Auction House Drama, NPR’s ‘stealership’ Coverage, Nordstrom Heading Upstream
Shoot us a Text. Welcome to Wednesday as we cover ACV’s recent lawsuit filed against major and minor auction houses, a recent story on NPR covering the so-called ‘stealership’ phenomenon, as well as retailer Nordstrom’s strategy to move product offerings upmarket. ACV has filed an antitrust lawsuit against many physical auctions including giants Manheim, Carvana owned Adessa, and many others whom it claims conspired to deny them access to AutoIMS, an industry standard platform in the auto remarketing industry The platform is provided by a joint venture of those four companies, Auto Auction Services Corp who is also named in the suit The suit states, AutoIMS inconsistently enforced its physical auction requirement to “preclude membership to certain digital-only platforms like ACV, which pose an existential competitive threat to NAAA’s controlling members.” ACV points to the fact that many other auction houses now offer exclusive digital auction services ACV also cites the loss of customers such as Hyundai Capital and Santander since they did not have access to AutoIMS and those companies had workflows that depend on them ACV is seeking injunctive relief, monetary damages, and legal fees NPR releases a story titled “Inside the rise of 'stealerships' and the shady economics of car buying” which began as the writer, Greg Rolansky’s journey to find a new truck to replace his stolen one The article gives an efficient overview of the franchise system and covers the pros and cons of the current system with a factual and common sense approach The benefits of having a local dealer network to serve customers, let them see product, service vehicles, have recalls taken care of, and of course, all those jobs He also covers the lobbying power that comes along with the economic leverage and questions whether or not stopping OEMs from having a monopoly on pricing is really effective reasoning for a Dealer network He then chronicles his truck buying experience and cites ‘stealerships’ charging as much as $20k over sticker to those who would charge MSRP, but he’d have to wait up to 6 months Finally, he settled on a truck he found 400 miles away for $2k over sticker negotiated down from $5k This untitled 2014 Toyota FJ Cruiser is one of approximately 2,500 Trail Teams Ultimate Edition examples built for the model year, and it was acquired by the selling dealer in 2014.</l
Tue, August 30, 2022
20 Million EVs by 2030, What is what3words, YouTube’s Take on the new “Fast Forward”
Shoot us a Text. Tuesday offers us a vague and precise picture of our future as we cover some highly audacious EV goals from Elon, a new way to do navigation (you’re gonna love it), as well as some stats on how fast people are watching your YouTube videos. Elon Musk tweets that Tesla could “probably” make 20 million EVs per year by the year 2030 in a Monday morning tweet. Analysis by Reuters shows that would make Tesla twice the size of any automaker in history, accounting for roughly 20% of the global vehicle market and would be a 13-fold increase over the estimated 1.5 million vehicles it hopes to sell this year Tesla would need to build seven or eight more "gigafactories" - an average of one every 12 months or so - take share from every competitor and emerge as a company the size of Volkswagen and Toyota Motor Corp combined They would need to increase battery capacity by 30x Raw material capacity to support the planned production in 2030 does not exist today, experts say Take away: Definitely a fence-swinger What3words is poised to change navigation, retail, and safety with its simple way to communicate navigation coordinates Touted as the only navigation system designed for voice, w3w divides map into 3 meter squares and gives each a unique combination of 3 words Use categories listed include Automotive, Logistics, ride hailing, ecomm, infrastructure, uav and more Breaks language barriers as it can deliver a 3 word address in 35 languages regardless of location Adoption by Ford, Land Rover, Mercedes-Benz, Subaru, Tata, and Vinfast Take away: ///drips.knee.vision is the location of the mainstage at ASOTU.CON btw YouTube says a rising number of users are increasing playback speeds More people are using the playback speed feature on YT and the company reports that it is saving over 900 years of video playback time per day “YouTube currently supports watching at 0.25x, 0.5x, 0.75x, Normal (the default), 1.25x, 1.5x, 1.75x, and 2x. As you can imagine, most people watch on the default speed, but we found that when people use this feature,
Mon, August 29, 2022
Does Carvana Actually Sell For Less, Unhelpful Content Purge, Going To the Moon
Shoot us a Text. We’re set to take off this Monday with some investigative journalism around Carvana’s claims, Google gets very helpful in their recent search update, and the US is going back to the moon (ish) today. Does Carvana really sell for lower prices as stated? Forbes contributor, Jeremy Alicandri has a very hard time finding any proof By visiting the WayBackMachine website, I was able to recover deleted content (shown below) from Carvana’s website that promised shoppers an average savings of $2,199 for each vehicle purchased from its site. The content also stated that Carvana saved its customers over $130 million versus traditional car dealers, a number that represented the accumulated savings for all sold vehicles since 2016. Carvana cites KBB as a source in the fine print, so Jeremy reached out and received a statement saying that KBB could not endorse the accuracy as there was a major internal calculation as a basis for the claim. Carvana did not respond to request He scoured public financials from Carvana’s reports finding higher profits per vehicle then dealers Turned to VINCUE to study pricing and their algorithm found Carvanas prices higher than dealers 72% of the time Regarding financing, Carvana claims to give customers lower rates, however, on average from 2018-2021 Carvanas rate was 13.41% vs Dealers 8.76% Google’s latest update targets ‘unhelpful content’ by steering users away from it. It’s called “the helpful content update” and will reward content creators who take a “people first approach” Good qualities for ‘people first’ include: Will someone reading your content leave feeling like they've had a satisfying experience? Does your content clearly demonstrate first-hand expertise and a depth of knowledge (for example, expertise that comes from having actually used a product or service, or visiting a place)? Bad qualities for ‘people first’ include: Creating content primarily to attract people from search engines, rather than made for humans? Are you producing lots of content on different topics in hopes that some of it might perform well in search results? Does your content leave readers feeling like they need to search again to get better information from other sources? Are you writing to a particular word count because you've heard or read that Google has a preferred word count? (No, we don't) NASA’s Artemis 1 SLS Megarocket is heading to the moon and back starting today as the preparations to send humans back to
Fri, August 26, 2022
California Dreamin Of All EV 2035, Fed Speech Incoming, Tesla Splits, Elimination of Dead Zones
Shoot us a Text. Lot’s of fun this Friday as we breakdown California’s 2035 EV rules, Fed Chair, Jerome Powell’s incoming speech from Jackson Hole, WY, as well as the Tesla stock split and Space X’s T-Mobile tag team. California’s new law will limit supply of passenger vehicles to be exclusively EV’s by 2035 The original regulations were announced as an executive order from Gavin Newsom in 2020 and met strong opposition from both the federal government and carmakers The Trump administration sought to make it illegal for any state to set standards more stringent than the fed and was supported by automakers such as GM and Toyota This time around, the regulations received near support from some automakers including GM who stated they have a similar vision for an all EV future The Biden administration has placed a voluntary goal of 50% EV production by 2030 The new California law will require 35% in 2026, 68% by 2030, and 100% by 2035. EV sales still account for only around 6% of U.S. new-vehicle sales, they were 16% in the second quarter in California California remains one of states losing population the fastest Take away: Fed Chair Jerome Powell will deliver a speech at the Federal Reserve’s annual Jackson Hole, Wyoming, symposium and is expected to have a stronger tone than in his last in June where he is expected to reiterate the Feds position to keep their inflation-fighting rate-hiking strategy in tact “The challenge for Powell is going to be the tone he adopts. I think he came across as slightly too dovish, not hawkish enough in July,” said David Page, head of macroeconomic research at AXA Investment Managers. “I think he wants to avoid that now, with markets expecting him to be relatively hawkish. ... It’s a very difficult game. It’s a game of expectations. ... It becomes a fine tune issue.” After the last announcement there was a stock rally and Powell wants to avoid this again since the misinterpretation that inflation is over can actually cause more inflation and impending recession Tesla shares had a 3 for 1 split yesterday , the second since its 5 for 1 split in 2020 A split doesn’t change the value of the company but makes it easier for more investors to get in the game $900 to $300 range Space X and T-Mobile are partnering to <a href='https://www.businessinsider.com/elon-musk-spacex-t-mobile-starlink-satellites-mobile-cell-phones-2022
Thu, August 25, 2022
FTC Declines Extension Request on New Regs, YouTubers Take Straight, EV Adoption Data
Shoot us a Text. We have some work to do this Thursday as we cover the FTC declining of the deadline for public comment on proposed legislation. We also cover the barrage of negative dealer coverage on YouTube. We’re also going to take a look at EV adoption data. FTC declined all requests in a unanimous 5-0 vote for extending the time for public comment on proposed regulations for Auto Dealers leaving the end date at Sept 12th NADA, NAMAD, NIADA and others requested extensions due to the sweeping nature of the proposed regulations, the fact that there was no prior discussion when they were announced, and also due to there being no meaningful data to review on such a short timeframe NADA regulatory affairs Senior Vice President Paul Metrey wrote in a July 18 letter, "Any attempt to provide the Commission with meaningful data, information, and perspective on these massive inquiries will require considerably longer than the 60-day comment period NADA CEO Mike Stanton wrote in a letter: "The FTC's refusal to grant a routine extension of a public comment period, particularly for a proposed rule of such sweeping magnitude that involved no advanced notice, further displays an unnecessary and misguided rush to judgment in this matter. This proposed rule would cause great harm to consumers by significantly extending transaction times, making the customer experience much more complex and inefficient, and increasing prices, and NADA again urges the FTC to go back to the drawing board before forcing a series of unstudied and untested mandates lacking evidence that will have such significant negative impacts on customers." Here is a popular consumer advocacy YouTube channel's response to those statements . Yikes Currently 2.24k comments We need YOUR comments in the mix here Watch these for your own good: https://www.youtube.com/watch?v=aP7ibiG-x6c https://www.youtube.com/watch?v=HgYDujLHzws Here’s the data on BEV registrations YoY Top 3 California – 563,070 (+137,770 EVs YOY) Florida – 95,640 (+37,480 EVs YOY) Texas – 80,900 (+28,710 EVs YOY) Bottom 3 North Dakota – 380 (+160 EVs YOY) Wyoming – 510 (+180 EVs YOY) South Dakota –680 (+270 EVs YOY) Top Growth Oklahoma (+111% YOY)<
Wed, August 24, 2022
EV Adoption Woes, Honda - Sony Collab, Peek Behind the Recent Tesla Update
Shoot us a Text. Today we take a quick-shot look across the EV space as we talk about the heavy lift following the recent Climate Bill, the Sony Honda collab destined to change the in-car experience, and get into the details of the latest Tesla update. After the passage of the recent Climate Bill, the task of convincing drivers that EVs are a good idea is more daunting than ever as Federal agencies now have to make all those preached benefits…convenient Affordability is paramount: “It is going to be a tough few years,” said Gregory Pierce, co-director of the Luskin Center for Innovation at the University of California at Los Angeles. “There is just a shortage of EVs most people can afford, even when you stack all the incentives.” Convenience is right behind: “It is just really tough,”said Robert Fernatt who heads the state’s chapter of the Electric Auto Association when asked if you can drive across West Virginia in an EV. Citing no fast chargers other than those for Teslas. They advise to avoid driving through the state The article goes on to cite numerous everyday consumers from all walks of life expressing major hesitancy Take away: Words are easy, implementation is much harder A Honda / Sony collab will be bringing a new EV offering to the high-end EV market by 2025 named ‘Sony Honda Mobility’ Sony Honda Mobility is expected to plan, design, develop and sell the EVs but not own or operate the manufacturing facilities Honda will manufacture the first EV model / Sony will develop the platform We know Honda’s abilities in mobility well, however Sony’s stated intention to “make the mobility space an emotional one,” I zumi Kawanishi, Sony Honda Mobility representative director, president and COO and executive vice president of Sony: “By combining the many strengths of Sony and Honda, we intend to accelerate development and lead the evolution of mobility by realizing mobility as an emotional space rooted in safety and security, and the related services.” Take away: Cars are no longer just cars Here’s a look behind the recent Tesla FSD update aside from the $3k price hike The FSD update included a major code change per CEO Elon Musk. As of right now, the subscription price of $199 mo remains the same There are a number of updates that were included, namely the introduction of cloud based profiles which allow Tesla drivers to easily transfer profiles and settings across Teslas.
Tue, August 23, 2022
Big Ford Cuts, AppleCar Secrets Stolen, Costco Fashion Thriving on TikTok
Shoot us a Text. Tuesdays are for Troublemakers. Today we cover Ford’s layoff of 3000 workers, the guilty plea of a Chinese former employee working in Apple’s automotive division, and why so many TikTockers are talking about Costco. Ford CEO Jim Farley and Executive Chair Bill Ford announced layoffs of 2000 US workers based in its Dearborn, MI headquarters and 1000 contract workers across the globe This constitutes about 1% of Ford’s total workforce and is a move in the direction of cutting more than 8000 positions as announced by Farley back in june Part of a broader restructuring of the company to be more cost competitive in the quickly developing EV space Farley has committed to cutting $3B in expenses by 2026 in an effort to reach 10% in pretax profit A former Apple employee working on the secretive AppleCar project pled guilty in Federal Court on Monday to stealing trade secrets including downloading circuit board schematics as well as removing hardware from the facility Xiaolang Zhang, faces up to 10 years in prison and a $250k fine after the plea In 2018 Zhang took paternity leave and went back to his home country, China. When he returned, he resigned his position stating he was going to move back to China and take care of his mother. His plan was to work for Xmotors, a leading China EV maker Apple has footage of him removing servers and a chip board from the facility as well as downloading a number of sensitive documents An FBI agent disclosed Apple has 5000 employees on the projects with about 2700 having access to database Costco fashion deals are going viral on TikTok The search term, “costco clothing finds,” on TikTok has 1.8 billion views on the platform as influencers and regular users are showing off their finds Fashion brands such as Hunter Boots, Tommy Hilfiger, Pendleton, Puma, DKNY, Uggs, Calvin Klein, Fila can be found in Costco aisles at significant savings from regular retail pricing and users are thrilled The ‘treasure hunt’ mentality is strong with this type of shopping and as opposed to traditional ‘treasure hunt’ outlets like Marshalls who may only have a few of each item, Costco stocks a plethora of sizes and colors of each item Costco has a $6.5B clothing business…before TikTok :)
Mon, August 22, 2022
Dodge’s Roaring EV, Tesla Autopilot Increase, Tony the Tiger is a VTuber
Shoot us a Text. It’s the start of another great week as we talk about Dodge’s noisy little addition to the EV race, Tesla bumping the price of Autopilot in a tweet, and your favorite striped cereal mascot becomes a YouTuber. And it’s only Monday. Dodge clears its own lane with the announcement of its first EV complete with signature sound, “The Fratzonic Chambered Exhaust” “NASCAR-banned aerodynamics. A multispeed transmission. And an exhaust system patterned after a pipe organ. Put it all together and you’re looking at the battery-electric Dodge Charger Daytona SRT Concept.” Tim Kuniskis, brand CEO said they did it “Because we can”. Also said in their Detriot reveal, "Dodge is going to get lost if we're trying to do the same thing as everybody else, so let's go, let's invent, let's create, let's do something different than [what] anybody else out there is doing," Looks nostalgic but feels fresh Consumer responses on twitter range from embracing the aggressive EV to calling it ‘Woke’ Here is what it sounds like Tesla’s Autopilot price will increase to $15k up from 12k per Elon Musk’s tweet on Sunday The tweet read “After wide release of FSD Beta 10.69.2, price of FSD will rise to $15k in North America on September 5th. Current price will be honored for orders made before Sept 5th, but delivered later.” A follow up tweet shortly after read “ Note, you can upgrade your existing car to FSD in 2 mins via the Tesla app” The technology has been under scrutiny as the NHTSA sent a letter to Tesla last week regarding the first of its two pending Autopilot defect investigations, posing several questions related to how the company is monitoring and enforcing driver engagement and attentiveness, Many Tesla customers started posting their own videos showing just how capable the software is. The NHTSA responded to some advising against the use of real pedestrians Musk has said the valuation of the FSD tech is essential to establish Teslas overall value Tony the Tiger is the first mascot to <a href='https://adage.com/article/digital-marketing-ad-tech-news/twitch-makes-frosted-flakes-tony-tiger-its-first-brand-vtuber/2426276
Fri, August 19, 2022
Toyota’s take on inventory recovery, Uber Ads, The cost to raise a kid
Shoot us a Text. We made it all the way to Friday and we’re just getting started. Today we talk about Toyota’s new Head of Sales’ predictions on that what and when of inventory recovery. We also dig into Uber and Lyft’s plans to get deep in the ad game, as well as a new study revealing the dollar amount associated with raising a child. Toyota and Lexus new Head of N/A Sales, Bob Hollis is said he doesn’t believe inventory levels will rise at the OEM’s dealerships for another full year in comments made at a press association event yesterday. Cited as low as a 36 hour supply, he said what the company wholesales will be what they retail He also said he doubts automakers will return to pre-pandemic practices of overproducing and discounting because consumers are becoming more comfortable with the online shopping experience Speaking of EVs Hollis said, "In my experience over 31 years in this industry, when government and others start telling consumers what they must have, consumers start to push back," Uber and Lyft are diving deeper into the ad business as the next billion dollar revenue stream With the announcement of Lyft Media, Lyft is looking to capitalize in its acquisition of another company that makes monitors and to run ads on top of cars in a move to sell ad space on in-car tablets that riders use, on digital display panels, bike docking stations, and through in-app sponsorships Uber is already selling ads through its Uber Eats app as well as car top screens Both companies have unique data on their users and can leverage into targeted ads attractive to advertisers A portion of revenue will go to the drivers but it is unclear on how much. Currently Uber drivers who install car-top screens can make as much as 20% Uber estimates $1B in revenue by 2024. Lyft has not disclosed projected revenue A new study by the Brookings Institute says it now costs a middle income household $300k to raise a child After a recent inflation adjustment, It determined that a married, middle-income couple with two children would spend $310,605—or an average of $18,271 a year—to raise their younger child born in 2015 through age 17 The estimate covers a range of expenses, including housing, food, clothing, healthcare and child care, and accounts for childhood milestones and activities—diapers, haircuts, sports equipment and dance lessons, among other costs Get the Daily Push
Thu, August 18, 2022
Target Gets Pummeled, F150 Lightning Real-World, Apple Doing Its Thing Again
Shoot us a Text. On this glorious Thursday we’re covering the continued retail drama as Target reports major Q2 Losses. We also cover a very real-world F-150 Lightning review, as well as Apple’s next big thing. Target’s profit down 90% in Q2 citing major discounting and inflation affected shoppers The environment for Target and similar retailers remains "challenging," CEO Brian Cornell told investors, but he said they are seeing "an encouraging start to the back-to-school" shopping season After 7 straight quarters of growth the last two have been rough. Cornell assured investors by saying "The high-level story is: The vast majority of the financial impact of these inventory actions is now behind us." Target has been hit harder than Walmart since their customers rely on them for more discretionary purchases Take away: Another indicator and validator of the current consumer retail mindset A non-auto industry writer’s take on the new E150 is a mixed bag of candid commentary Nilay Patel, Co-Founder of tech publication The Verge recently reviewed the new E150 and it is a very entertaining read that gives a good feel for what an EV truck owner might experience. He even took it to the dump Highlights: comfort, speed, handling, self driving, front storage Lowlights: very slow and confusing interface and os, charging station woes, range inconsistency “The result is that the software experience of the Lightning often feels trapped in the past, with no clear path to the future because Ford’s real software efforts lie elsewhere. The instrument cluster features the same cryptic icons and fundamental menu layout Ford has used in its cars forever. That huge portrait infotainment screen is woefully underutilized and the menu layout can feel like a randomly generated maze with no destination.” Note: Ford is working with Google to launch an Android powered OS sometime next year Take away: For real, read this article, it will help you empathize and understand the potential CX with EVs Bloomberg reports that Apple Inc. is aiming to hold a launch event on Sept. 7 to unveil the iPhone 14 line, according to people with knowledge of the matter, New phone, Macs, high and low end iPads, as well as a new rugged Apple Watch are expected Typically the announced new products are a
Wed, August 17, 2022
EV Tax Credits, Meet the New Walmart Shopper, GM Goes Luxury
Shoot us a Text. Welcome to Wednesday as we take a look at Walmarts earnings report which indicates a new type of clientele at its stores. We also cover GM welcoming a luxury brand member to its board, as well as an candid EV review we think every Dealership employee should read. Credits for 70% of previously eligible EV models ended with a stroke of Joe Biden's Pen The Inflation Reduction Act has substantially changed the game for EV tax credits now requiring EVs to be assembled in North America There is a full list of eligible EVs in the AutoNews article here All Toyota, Hyundai, Porsche, Kia EVs are no longer eligible According to the IRS "if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract." GM and Tesla who have burned through their 200k allocated EV credits will again be eligible for the credit on Jan 1 Starting in 2024, the credit can transfer credits directly to Dealers at the point of sale GM welcomes Lux brand CEO of Tapestry Inc, Joanne Crevoiserat, to its board Tapestry holds brands Coach, Kate Spade and Stuart Weitzman From her bio on the Tapestry site: Joanne has deep industry, financial, and operations expertise having spent over 30 years in a variety of retail companies. She has held a variety of leadership positions in multi-brand, global companies with a focus on helping organizations successfully transform. From the Tapestry mission: By bringing together different people and ideas under one roof and giving them a place to grow, we stretch what's possible for our brands, our consumers, our industry, and society. Mary Barra commented: "As we accelerate our transformation, we have an incredible opportunity to drive loyalty for our iconic brands and attract new customers, which is exactly what Joanne has done at Tapestry." From Crevoiserat: "This is an exciting time to join the GM Board. The company is innovating across every part of the business to drive growth. I look forward to serving the Board and GM's shareholders through this transformation." Walmart beat sales expectations in its Q2 earnings report as trend of retail consumers trading down continues Sales up 8% with much credit going to higher in
Tue, August 16, 2022
The Dealership Doctor, Free Streaming, Apple Back To Work, BestBuy Lays Off
Shoot us a Text. This Tuesday we’re talking about unconventional healthcare with big time satisfaction. The Walmart - Amazon rivalry takes another step up. We also cover Apple's return to work (finally) and layoffs at Best Buy which could benefit Dealership employee searches. One Florida Dealership provides some very special health care services, including a Dr who sees patients several days a week at the store After a 35% rate increase in 2019-2020, Greg Balasco, owner of Lakeland Automall who is a Ford, Hyundai, and Genesis dealer had enough and began looking for other options "There was sheer frustration over the lack of quality health care and the continual increase in expenses for me and our employees every year," Balasco told Automotive News. "Now, we're managing our health care ourselves instead of allowing these big companies to do it and take advantage of the employee and employer.” Worked with advisor Health Rosetta to find a fit and now manages their own health Saved 25% for everyone Many no deductible services and no-cost durable medical equip Quick call/text access to the Dealership doctor anytime Health card bears the Dealership logo The “Dealership Dr” Dr. Christopher Salud, said in an interview w ABC Action News in Tampa, Fla., that he enjoys spending more quality time with fewer patients. The store sold 5200 vehicles last year Take away: We bet they have a lower than normal turnover rate. Walmart has reached a deal with Paramount + to offer the ad supported version of the streaming platform to all members of Walmart+ subscription service for free Direct move to remain competitive for its 16 million members with rival, Amazon Paramount has had an office in Bentonville for many years Walmart+ is $98 per year and includes free shipping, gasoline discounts, and 6 months of Spotify premium. Amazon Prime costs $139 and features a robust streaming offering for video and music Apple tells its employees they will need to return to in-person work 3 days per week starting September 5th Employees will be required to be in-office Tuesday, Thursday, and one other day of their choice The return was originally planned for July of 2021 but was shelved due to employee protest From CEO Tim Cook, “We are excited to move forward with the pilot and believe that this revised framework will enhance our ability to work flexibly, whil
Mon, August 15, 2022
Used Car Market Moves, Movers Make Used Cars, Making Meals At Home
Shoot us a Text. It’s a fantastic Monday to sell and service some cars. Today we’re talking about the shifts Dealerships are seeing in used cars, and how hundreds of Dealers and Industry Partners are coming together to take advantage of the changing landscape head-on. We also cover a Utah grocer who is breaking convention to serve consumers the way they want. Many dealers are in the midst of a Used Car business model shift as consumers continue to search for less expensive used cars Affecting the publics most directly as inflation and higher interest rates are leading consumers to look down market, and retailers to extend their existing parameters for used car age and pricing Group 1 Automotive CEO Earl Hesterberg said in late July, "We're seeing demand shift to lower price points. That shift is happening most prominently among middle-class consumers and those buying mass-market brand and used vehicles. Asbury Automotive Group CEO David Hult said, “Consumers who were "impulsively buying" six months ago are more deliberate in their selection now.” Sonic President Jeff Dyke said, they are seeing demand for vehicles up to 8 years old and started to include such vehicles in EchoPark's inventory earlier this year after having challenges securing 1- to 4-year-old vehicles Dyke also said the demand for a $640 payment for a used car is dropping forcing some buyers out of the market Penske’s CarShop had a target price of $20k for a used vehicle but that has inflated to 30k. They still chose to pass on the $8k-12k vehicles, considering them wholesale The hottest segment are used cars between $10k-15k according to Michigan Dealer Aaron Zieglar Over 350 Dealers and Industry Partners came through “I could buy more used cars if….” on Friday’s ATUC session with Dealers and Industry Partners Consistent equity mining, Service drive is your friend, POS Material/Kiosk, Appoint a champion, Stop your turnover, Follow the data on new and rental markets as indicators, Have a plan and measure the efforts, Have the right prices. Treat each vehicle as an investment. The right price, the right advertising, the right process. It all matters and is different for each and every car. Dale Pollak even showed up Listen to the full discussion here Take away: Victory goes to the practitioners Marcellus Foods, A grocer in Utah is opening a store that focuses on meal prep instead of just selling grocer
Fri, August 12, 2022
An Auto Entrepreneur Buys Lots of EVs, GM Retools, Gen Z Prefers Search on TikTok
Shoot us a Text. Walking into a much cooler Friday than last week for most of the country, we’re covering a move by startup Autonomy to boost EV offerings, GM retooling and simplifying its chip infrastructure, as well as the Gen Z trend of trusting TikTok for search. EV Subscription Company, Autonomy (formerly NextCar) placed orders for 23K EV’s across 17 Automakers, partnering with Auto Nation for both sales and service “The orders are for 45 different models and are valued at $1.2 billion per an Autonomy press release Will take delivery of all 23,000 vehicles within 18 months, Founder and CEO, Scott Painter told Automotive News. Until now the company only had Tesla Model 3s, and is moving to including the Model Y, several GM models including the Chevrolet Equinox, GMC Hummer EV and Cadillac Lyriq. Also about 1000 vehicles each from Volkswagen, Ford, Hyundai, Kia and Rivian and fewer than 500 each from Polestar, Volvo and Canoo Painter founded TrueCar and Fair Take away: We don’t know if the business model will work or not, but it definitely will promote overall EV adoption GM is retooling and significantly reducing the number of ‘chip families’ it’s using to clear backlogs and prevent them in the future Were sitting on 95k assembled vehicles waiting on chips at the end o f Q2 and have cleared more than 20K of them in July Plan to reduce the number of chip families by 95% in future designs, to prevent future shortage CFO Paul Jacobson said the number of chip families used will drop by 95% down to 3 total. He also noted increased involvement throughout the manufacturing chain Take away: These aren’t flashy announcements, but most nuts and bolts improvements aren’t. That’s a good thing. TikTok is becoming (or maybe IS) the preferred search engine of Gen Z Wanda Pogue, Chief Strategy Officer at VaynerMedia cites a new study that shows 40% of Gen Z users prefer TikTok and Instagram over Google when it comes to search “... my Gen Z daughter had a group of friends over. I asked them about their behavior on TikTok, and they agreed: It’s the platform they go to now when searching for anything, from the highest-rated beauty products and clothing trends to the best restaurants in the area or recipes to try” Gen Z prioritizes authenticity and util
Thu, August 11, 2022
Dealer Families Dealing, Disney Keeping Dreams Alive, Ethereum Approaching A Big Day
Shoot us a Text. We hope you’re up and at ‘em this Thursday as we share a great story about a recent acquisition deal between two families on a handshake. We also cover Disney’s moves in streaming and theme parks to keep consumers happy, as well as a big day coming for cryptocurrency Ethereum. ASOTU CON Host, Ciocca Dealerships closed on the acquisition of six stores in Flemington, NJ Owner Gregg Ciocca Sr grew up near the “Flemington Car and Truck Country” founded by the late Steve Kalafer and knew him personally Steve Kalafer, a prominent dealer known for speaking out against stair-step incentive and other automaker programs that he thought disadvantaged retailers, also founded a minor league baseball team and attained national acclaim for producing short films. The stores have been run by Kaalafer’s two sons since his death in 2021 "It was really two family businesses that just shook hands very quickly," Ciocca said. "They wanted a good family to take over their great family business. So I felt very privileged and fortunate they chose me and my Ciocca family, my three sons, to be the stewards of that business, which is a high-performing dealer group." Ciocca ranks #83 on the most recent AN top 150 list Take away: What other industry is like this? Come meet Gregg in person at ASOTU CON! Disney’s earnings and streaming prices up as well as theme park traffic and streaming subscribers Revenue is up to a higher than expected 26% which caused the stock price to jump 7% in after hours trading Subscribers to Disney + were up however the company slightly lowered future expectations When combining all streaming properties (D+, Hulu, ESPN+) Disney now has over 221M subs, surpassing than Netflix Theme park traffic is very strong albeit they are unable to staff to capacity Profit margins are higher than ever as spend per guest have risen significantly, helped by lower labor costs and tech introductions of Lightning Lane and Genie + which allow park visitors to map out their plans for the day and make reservations at restaurants, among other services Disney also outlined new pricing to make room for the ad supported tier of Disney+ Cryptocurrency Ethereum executed <a href='https://www.cnbc.com/2022/08/10/ethereum-goerli-testnet-merge-goes-live-before-move-to-pro
Wed, August 10, 2022
Used Car Merger, GM Forces Subscriptions, GaryVee and Cars, Blue-Green Bubble Wars
Shoot us a Text. This is an eventful Wednesday as we unpack some business and some drama while we talk about the Shift/CarLotz merger, GM forcing a very expensive subscription on buyers, Echo Park hiring a cutting edge social agency, and Google trying to shame Apple to get rid of it’s blue imessage bubbles. Used Car retailers Shift and CarLotz announce merger Stock for stock transaction to be traded as SFT on Nasdaq Shift is an ecomm platform has primarily a west coast presence, while CarLots has a mid-atlantic presence and is primarily a brick and mortar consignment model Shift will be cutting of its workforce (about 60%) through end of year Shifts current President, Jeff Clementz will become the company’s CEO They are expected to have a position of $125m in cash Take away: Consolidation is moving beyond franchised dealers, but can it hold GM to force Buick, GMC and Escalade buyers to pay $1500 for 3 years of Onstar at POS Price included in separate section of the sticker and is included in the MSRP of all ordered Buicks and GMCs June 2 and Escalades ordered starting July 18 Customer pays even if the service is never activated Rack rate is $49.99, the baked in pricing comes to 41.67 with an auto renew at full price GM’s research resorts that customers subscribe to 25 products and services and will spend $135 per month on them on avg GMs goal is to have $20-25B in sub revenue by 2030 Take away: Forcing customers to buy something they weren’t buying before doesn’t seem like a winning strategy Echo Park retains VaynerMedia as Agency of Record Former Mazda N/A CMO Dino Bernacchi started working at EchoPark in October and said that’s “when the company really decided to shift gears on the trajectory of growth and start building more than just an infrastructure of locations.” Now that infrastructure has been laid, it's time to “actually build the brand” said Bernacchi Vayner CEO, Gary Vaynerchuk said the agency will handle creative, strategy, analytics, and more with a focus on social Take away: We’ve been waiting for someone to do this at scale, the good news is, everyone can take this approach today Google to launch shaming, er marketing campaign to pressure Apple to adopt universal messaging format Trying to p
Tue, August 09, 2022
Loyalty And Confidence Declines From Dealerships To The Housing Market, McLaren Tries On Sneakers
Shoot us a Text. Tuesday is all about loyalty as we talk about the continued decline of both brand and Dealership loyalty, the lack of confidence in Auto brands, Dealerships, and the housing market. We also talk about premium brand McLaren getting into the sneaker game. New research shows loyalty to brands and dealerships continues to slide Research firm Growth from Knowledge (GFK) AutoMobility shows loyalty toward brands and dealerships is continuing to decline as MSRP and more is the norm 80% of car buyers paid at or above the sticker price in May and June 31% of buyers who did said they would tell others not to go to the dealership they used, and 27 percent said they wouldn’t return to the dealership for service 27% of respondents said they would not buy from the same brand if charged over MSRP, and 23 percent said it negatively impacted their opinion of the brand Julie Kenar, senior vice president at GFK AutoMobility said, "It's not that brands aren't doing anything; a lot of brands have communicated with their dealers that 'You're potentially damaging the equity that you've built up in your dealership and we've built up in our brand,' "But from a legal perspective, there's not a whole lot that brands can do. We're hoping that with releasing this research, this will provide brands and dealers with some data points to say that this is not anecdotal." Take away: Whether you are charging over MSRP or not, it’s time to be proactive about over-delivering on experience Consumer confidence in the housing market drops to 10 year low Consumer confidence in the housing market dropped to the lowest level since 2011, as both prospective buyers and sellers have become more pessimistic Just 17% of those surveyed in July said now is a good time to buy a home, down from 20% in June, according to a monthly survey by Fannie Mae the share of sellers who think it’s a good time to list their homes dropped to 67% in July from 76% two months prior The index consists of six components: buying conditions, selling conditions, home price outlook, mortgage rate outlook, job loss concern and change in household income Currently at 62%, down 13% from last year, down from 93.7% in 2019 Prices aren’t dropping yet, however both supply and time-on-market are going up Take away: People are feeling uncertain about houses and cars, therefore providing even small amounts of certainty, peace of mind, and a smile can go a long way Mclaren has g
Mon, August 08, 2022
“Inflation Reduction”, Best Time To Buy A Car, Pharmacy Primary Care
Shoot us a Text. Welcome to a fresh, shiny new week as we follow up on the weekend’s progress of the EV Tax credit bill we covered last week. We also talk about the advice circulating the internet regarding the best time to buy a car, as well as CVS’s plans to expand into primary care. “Inflation Reduction Act” which included significant EV tax credit changes passed the Senate last night and will head to the house Lifts the cap on $7500 EV tax credit across manufacturers Significant requirements for EV battery assembly to happen in the US and sourcing also heavily regulated 60% made/assembled in US by 2024 ramping to 100% by 2029 Also includes an MSRP Cap (80k trucks, 55k passenger) Income cap 300k married 150k single Doubles the size of the IRS Will be voted on in the house on Friday and is likely to pass The best time to buy a car is a thing of the past , and consumers are figuring it out A 2020 report from US News and World Report is making the rounds as consumers are looking for any tips and tricks to steer them in the current environment Outdated tips lists include: Avoid buying cars in the spring — that’s when most folks want a new car for the summer. August is the best time to buy a non-luxury “leftover” model. December is the time to buy a luxury vehicle. The week between Christmas and New Year’s is the time for great deals Consumers are receiving “there is no silver bullet” advice more than ever “This whole concept of hitting the dealer at the “right time” isn’t really applicable today, when dealers have little motivation to bargain and the likelihood of them having the car you really want could be low.” Take away: This is a big opportunity to educate and empathize. Get ahead of the visit w your marketing and outreach CVS buying its way into Primary Care CVS was the first to break the plane from pharmacy to patient care when it acquired MinuteClinic in 2006 and grew it from 83 to 1,100in-store clinics staffed by nurse practitioners CVS has plans to enter primary care and acquire its way into 1,000 units across the country Competitors WalGreens acquired Village MD, WalMart acquired MeMd to add virtual medical and mental health to in-person clinics, Amazon acquired One Medical Take away: Automotive isn’t the only brick and mortar re
Fri, August 05, 2022
Carvana’s Q2 Woes, Shopping Malls Moving Forward, A New Type of Super Sensor
Shoot us a Text. We’re rounding out the week with Carvana’s Q2 performance and integration of ADESA, as well as general retail traffic increasing in shopping malls leading to tenants moving in. We also talk about a substantially more powerful sensor for autonomous vehicle operation. Carvana posts substantial $439M Q2 loss citing high used-vehicle prices, rising interest rates and other macroeconomic pressures Less than $506M Q1 loss but way less than $45M profit YoY Revenue up 16%, Units up 9% to 117,564 Profit per unit down 34% $5120 to $3368 In May, the company said it would dismiss 2,500 employees (12% of team) and top executives would forgo their salaries through end of 2022 First half loss this year $945M vs $37M last year Realized first returns from ADESA integration and CEO Ernie Garcia is “extremely happy with [its] integration progress so far." Embedding market hubs in 18 ADESSA locations and shifting some recon into ADESA locations, closed one recon center in Ohio and opening one in Richmond, VA Stock up 13% in pre-market trading Retailer’s continue moving into malls across the country According to the largest Mall Operator in the country Simon Property Group (SPG) retailers are not backing out of deals to open up stores tenant occupancy rate is even up year-over-year, currently at 93.9 percent over 2021’s 91.8 percent. Better than usual lease terms in cost and term flexibility Online stores moving into Brick and Mortar, lux brands moving into suburbs with smaller versions of flagship stores as luxury buyers remain strong Foot traffic is up 1.7 over last year but still below pre-pandemic highs This year there has been a net increase of 2,478 stores in the U.S., with 4,432 openings and only 1,945 closings, according to Coresight Research as reported by CNBC. New autonomous driving tech can see around corners Neural Propulsion Systems AtomicSense Platform Human error causes 95% of car accidents The theory is if a system can see and process object from far enough away, they can be eliminated This requires a data acquisition and processing rate of 100 terabits per second—that's 10 million times the estimated sensory data rate flowing from your eyes to your brain when you're not drunk or distracted. combo of multiband radar, MIMO lidar, cameras, and "atomic-norm" computing Combines solid-state array
Thu, August 04, 2022
EV Credit Cliffs Notes, Big Companies Investing Big, Is the Nordstrom Tire Story True?
Shoot us a Text. As we cruise into the back half of the week we’re giving you a breakdown of the proposed EV Tax Credit. We also talk about why capital investments from big companies are a good sign for the economy. Finally, we’re getting to the bottom of whether or not that legendary tire return story at Nordstrom’s is true or not. Breaking down the EV Tax Credit Proposal currently in the Senate Currently: $7500 credit for the first 200k units per OEM Proposed: $7500 credit for unlimited units with sourcing, sticker, and income stipulations Sourcing: 50 percent of the critical minerals used in EV batteries to be extracted or processed in the U.S. or a country with a free trade agreement in effect, or from materials that were recycled in North America. In 2024 and 2025, 60 percent of the battery components must be made or assembled in North America. Increase to 80 percent after 2026 for critical minerals, and by 2029 would require 100 percent of the battery components to be made or assembled in North America. Final assembly of the vehicle also must occur within North America — a provision that would apply immediately after the bill is enacted. Credit Caps - Sticker: MSRP cap at $80k for new pickups, SUVs and vans, and $55k for other vehicles such as sedans Credit Caps - Income: Adjusted gross incomes cap at $300,000 for joint filers, $225,000 for a head of household and $150,000 for single filers. $4,000 tax credit for consumers buying certain used EVs and a credit for certain commercial vehicles GM, Google, Pepsi and others are boosting capital investments , signaling confidence Based on results from roughly two-thirds of the companies in the index, capital expenditures have risen 20% from a year earlier to $149.8 billion GM CFO Paul Jacobson talked about expanding its electric-vehicle fleet. “The investments we have made in these vehicles over the last couple of years…provide a strong bridge to our all-electric future as spending rose from 1.5 to 2.1B YoY Alphabet investing in servers and tech infrastructure: “With an uncertain global economic outlook, our strategy to invest in deep technology and computer science to build helpful products for the long term is the right one,” Chief Executive Sundar Pichai said on the company’s earnings call PepsiCo finance chief Hugh Johnston pointed to digital investments to ensure stores are stocked with appropriate inventory That infamous story about the <a href='https://retailwire.
Wed, August 03, 2022
OEM Sales Struggling, Experian Giving the Wrong Number, Metaverse Jobs Lost In The Metaverse
Shoot us a Text. We are fired up after a day of content creation and invigorating conversations! Today we dive into the OEM sales data from July, an issue with credit reporting from Experian, and a downturn in overall job listings pertaining to Metaverse roles across job boards. Time to kick it into high gear as we roll up our sleeves and get to work! July US Light Vehicle sales down 11%, Toyota down 21%, Honda down 47%, Mazda down 29% Toyota and Honda down for 12th straight month, Hyundai and Kia down 5 months Toyota ended July with 104,790 vehicles in stock — 14,258 at dealers and 90,532 in port or transit — or a 16-day supply. Hybrids and plug-in hybrids rose 12 percent at Hyundai and 86 percent at Kia American Honda said the Honda and Acura brands continue to see "unprecedented high turn rates," reflecting "strong retail demand" despite supply chain and logistics constraints "There are plenty of headwinds pushing against a notable recovery in sales volumes," Cox Automotive Senior Economist Charlie Chesbrough said. "Rising interest rates and low consumer sentiment are keeping many potential buyers out of the market. At the same time, higher prices for both gasoline and vehicles are making affordability an even greater challenge. Tight supply, however, continues to be the biggest obstacle over the near term, and there is little evidence of supply returning to normal." Avg interest rate was 5.5%, avg loan term 71 mos Experian reports inaccurate credit scores delivered for millions of customers affecting rates provided inaccurate credit scores on millions of U.S. consumers seeking loans during a three-week period earlier this year, according to bank executives and others familiar with the errors. Mark Begor, Equifax’s chief executive, publicly acknowledged the flub at a June investor conference, calling it a coding issue that affected “legacy applications that resulted in some scores going out that had incorrect data” “The impact is going to be quite small,” Mr. Begor said, “not something that’s meaningful to Equifax. Equifax told one large auto lender that about 10% of applicants during the three-week period had inaccurate scores, according to a person familiar with the matter. Of those, several thousand saw a change of 25 points or more on their credit score, the person said. In a small number of cases, applicants went from having no credit score at all to a score in the 700s—or vice versa, the person said. <a href='https://www.fastcompany.com/9077472
Tue, August 02, 2022
GMs Letter to Dealers Re:Resale, Service/Parts Growth, CPG Companies Testing the Waters
Shoot us a Text. There’s a lot to cover this morning as we dive into a letter from GM to its dealers penalizing resale of hot models. We also talk about the major current and projected growth of the service and parts departments, as well as the moves CPG companies are making to feel out the consumer mentality on value and luxury in the personal care products they are purchasing. GM Dealers receive notice about post-sale guidelines for customers When vehicles are quickly resold, particularly by unauthorized dealers or other resellers that do not adhere to GM's standards, the customer experience suffers and GM's brands are damaged. As a result, on certain high demand enthusiast products, we are limiting the transferability of certain warranties and barring the seller from placing future sold orders or reservations for certain high demand models (as identified by GM) if the vehicle is resold within the first 12 months of ownership. Currently, the products impacted by these changes include the following: 23MY Cadillac Escalade-V, Chevrolet Corvette Z06, and GMC HUMMER EV (SUT and SUV). Certain warranties will not be transferable if the original owner resells the vehicle within one year of delivery. Main issue: Warranty will be voided on sale or transfer of vehicle. Take Away: As the mediator between OEM and customer, dealers MUST educate and lead with empathy when communicating these new guidelines. Service & parts growth happening due to vehicle age creeping up According to digital marketing agency Hedges & Company the average age of cars in the US will reach 12.3 years in 2023 Houston based Group 1 has seen service and parts sales hit an 14.5% increase over last year on a same-store basis, the largest percentage increase of the publicly traded new-car groups and an 8.4% increase over 2019 pre-pandemic numbers The group is shifting parts and service schedules back to the 4 day work week model they deployed pre-pandemic citing the ability to add more shifts, increase work per bay, make operating hours more convenient for consumers, and increase employee satisfaction Take away: Dealers have most control and opportunity in service, a lot of these best practices don’t require capital injections but process and mindset shifts CPG companies take blended approach of smaller sizes and premium upgrades Many CPG brands like Unilever, P&G, Pepsi, Hellmans and more are doing what they can to predict what shopping behaviors will be if there is truly a downturn Proctor and
Mon, August 01, 2022
Ford’s Farley Discussed Plans, Rivian Opens More Service Centers, NBA is winning NFTs
Shoot us a Text. Welcome a fresh, shiny new month as we kick off the last full month of Summer with news about Ford CEO, Jim Farley’s comments on a recent shareholder call, Rivian’s service center plans, and the reason NBA fans are helpling the adoption of Web 3 move forward. Ford CEO Jim Farley discusses battery and sales model plans in earnings call In March the company announced plans to build 2M EVs annually by 2026. There have been many skeptics on how this could be achieved In the July 21st call, Farley said the company has nearly everything it needs to make 600k vehicles in 2023 and 70% of what it needs to hit the 2026 goal Farly says the company will focus more on upgrading tech and motors and less on body-style upgrade similar to Tesla When discussing the franchise model, Farley said it puts Ford at a $2k per car disadvantage and will look to made-to-order model, and changing the way they market vehicles, pushing dealers to focus on delivery, education, and service to bridge the gap Take away: Body style…you mean like BMW. Also, dealers could do well to lean into delivery, education, and service. Is there a revenue model here? Rivian expands service centers in US and opens its first in Canada "Post-sale support is a consistent challenge for startup automakers, as it's always more demanding, resource-intense and costly than startup CEOs can conceive," said Karl Brauer, executive analyst for iSeeCars. "This is one of the reasons the franchise dealership model has worked so well for traditional automakers — it allows the automaker to design, engineer and build vehicles, while dealers focus on selling and servicing them," Brauer said. Rivian’s South San Francisco service center has become more than a service location as customers now show up to see the vehicles and even test drive Rivian has 21 service centers open in the US, in larger metros such as: Atlanta, Chicago, Denver, Houston, Las Vegas and Orlando. 6 more are planned by the end of the year as recent layoffs have not affected service operations. A second Bay Area service station will open soon in San Jose Rivian is focusing on delivering 25k vehicles this year which is far less than it’s production backlog of almost 100k vehicles NBA puts on a full court press w NFTs as the most progressive Web 3 Sport Spencer Dinwiddie says locker room convos less about cars, girls and more about blockchain, tech, and investment The
Sat, July 30, 2022
Last Day w/ David Long Executive GM, Hansel Auto Group
Shoot us a Text. Whether it's been a great month, or a challenging one, David Long has the right message for sales teams in Retail Automotive across this great country. Get the Daily Push Back email at https://www.asotu.com/ Rock with us LIVE at ASOTU CON! Tickets: https://www.asotucon.com JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, July 29, 2022
Lending Leading the Way, Amazon is Primed, JetBlue is Golden
Shoot us a Text. We’re closing out another great week of Troublemaking as we talk about Ally Financial’s report on the strength of consumer demand amongst rising rates. We also talk about why Amazon is faring better than its competitors, as well as JetBlues acquisition of Spirit and what it means for air travel. Ally Financial leadership expects demand to hold strong through interest rate hikes CEO Jeffrey Brown says that despite volatility that the narrative remains strong that supply is weak and demand is strong citing that there are still 4 to 5 million sidelined shoppers who are poised to replace those who may drop out CFO, Jennifer LaClair says the company expects rates of 8% and cited that each point raises monthly payments by $15-20 which consumers may be paying for two loaves of bread LaClair reports on the financial health of consumers: Savings account levels have started to normalize, she said, but they remain "robust" above pre-pandemic levels at all income levels — despite inflation, higher tax payment levels and strong consumer spending. Thirty-day delinquencies rose in the second quarter but remained below 2019 levels, LaClair said. Ally saw 2.5 percent of its auto borrowers default in the second quarter, compared with 3.3 percent in the second quarter of 2019. Take Away: Focus on the indicators not the hype Amazon reports that inflation is not affecting sales like other competitors Sales were down 4% which was less than expected with Amazon projecting 13-17% growth in Q3 which is a much different picture than competitor Walmart There is no sign of wavering for Amazon’s 200 Million member Prime subs Analysts agree that one of the primary differentiators with Amazon v Walmart is that WM has primarily lower income customers as compared to Amazon’s middle to upper income customer base Take Away: Not all income levels are faring the same. Cater your experience JetBlue closes on $3.8B Spirit acquisition creating a larger low-cost competitor The process has been full of drama as JB stepped in to breakup a merger between Spirit and Frontier that was already pretty far along Frontier argued that antitrust regulators would likely break up the deal, JetBlue accuses the Spirit board of not doing what was best for shareholders JetBlue ended up paying shareholders a $400M breakup fee and committed $70M in the e
Thu, July 28, 2022
High Speed Market Summary, Apple Lambo, $200 Pool Chair Rental
Shoot us a Text. There is so much to talk about regarding the markets, we couldn’t possibly focus on just one story so we’re giving you a high speed summary. We’re also talking about Apple's recent poach from Lamborghini, as well as a growing trend of resorts charging big bucks for pool chair rentals. With so much reporting going on, here are the bullet points The Fed increased rates by .75 percent as expected yesterday. Although they said future rates may still need to go up, they did say it would be appropriate to ease at some point, making investors happy Note: Fed Chair Jerome Powell stated again he does not believe we are in a recession. Ford revenue jumped 50% and net income was up 19% from YOY CEO Farley said the company is moving forward with purpose into the largest growth period the company has ever seen Number of vehicles awaiting chips is 18k down from 53k last quarter Penske Auto Group records most profitable quarter ever as net income jumps 10% Group 1 reported highest revenue and gross profit largely due to acquisitions. Same store revenue was down 4.1% Reported deal between Senators Chuck Schumer and Joe Manchin revives 4.5k EV credit to be available to all EV sales and not limited to cap, giving Toyota and Tesla a more level playing field Take Away: Keep your head up and feet nimble Apple hires exec from Lamborghini to join the AppleCar team 21 year Lambo veteran, Luigi Taraborrelli left the company in May according to LinkedIn from a position leading the development of chassis and vehicle dynamics Taraborrelli worked on Lamborghini’s Urus SUV, Huracan Coupé, Performante and Aventador Coupé, and others AppleCar project Titan has been around since 2014 and has seen ups and downs only to be gaining steam in current years Take Away: This is a further indicator of car culture and pop culture being synonymous Major resorts now charging up to $200 for that WFH poolside lounge chair Due to high travel demand and willingness of guests to reserve preferred experiences, many resorts are presenting guests with the option to reserved not-so-luxurious chairs by the pool Bellagio $200, Excalibur $125, JW Marriott Desert Ridge Resort & Spa in Phoenix $150, for combinations of standard chairs to plush. Additional amenities include premium water selections and snacks Using ‘open-table like’ software to manage reservations Take Away: This is another indicator of how consumers are prioritizing their spending post pandemic Get the Daily Push Back email at https://www.asotu.com/ Rock with us LIVE at ASOTU CON! Tickets: https://www.asotucon.com JOIN the conversation on LinkedIn at: https://www.linkedin.com/c
Wed, July 27, 2022
The Fed meets today, NADA Show Tickets open, and IG Backlash
Shoot us a Text. Welcome to Wednesday as we cover the potential developments around the Fed's meeting on interest rates, the 2023 NADA Show opening up tickets and all the fanfare, as well as Instagram CEO’s response to millions of disgruntled users. Many are calling today “Fed Day” in anticipation of interest rate conversations The Fed is expected to raise interest rates 75 basis points today Following positive 2nd quarter earnings calls, there is more optimism in the market, despite continued high inflation Some economists are warning that the fed is having to rely on lagging indicators in the economy to make interest rate decisions, causing potential un-due change on turning markets. Though inflation is high, the job market remained strong in June and looks to be on pace for the same in July, though reports will not surface until next week. Take Away: Allow us to introduce you to Jonathan Smoke. Keeping a level head and remaining cautiously optimistic in automotive right now is key. NADA Show opens ticketing, room blocks, and announces key speakers You won’t want to miss this fun and festive welcome reception, featuring trick ropers, line dancing, a honky-tonk band, mariachi music, flamenco dancing, mechanical bulls, armadillo races, western blackjack and so much more. Prices go up Sept. 16th and we hear hotel rooms are going fast! The push for industry partner tech updates is squeezed into 9 months this year With education (incl. Our very own Paul J Daly) pushed out 6 months, where do you perceive the conversation will be centered around? Take Away: The industry vibing together is a necessary part of our success. Have we told you about ASOTU CON!? Instagram changes spark backlash from its largest users and many more The platform has changed its primary feed to feature reels and feel much more like TikTok The Kardashians who have over 685M followers posted comments and a change.org petition started by another user to ‘Save Instagram’ specifically asking the platform to: BRING BACK CHRONOLOGICAL TIMELINES!, STOP TRYING TO BE TIKTOK!, AN ALGORITHM THAT FAVORS PHOTOS!, AN ALGORITHM THAT FAVORS PHOTOS! This prompted a public response from Insta CEO Adam Mosseri: “We’re experimenting with a number of different changes to the app, and so we’re hearing a lot of concerns from all of you…I want to
Tue, July 26, 2022
GM’s Revenue Ride, Walmart Cutting Prices, TikTok Pink Sauce
Shoot us a Text. We’re rolling into Tuesday as earnings reports keep flowing. Today we cover GM’s report, what Walmart is doing to manage inventory and keep customers spending, as well as the pink condiment that has the Gen X internet deeply divided. GM Q2 net revenue is down 40% to 1.7 B as total revenue is up 4.7% In quarterly earnings report deck , CEO Mary Barra stated, Our outlook for the second half is strong, and we are reaffirming our full-year earnings guidance that includes EBIT-adjusted of between $13 billion and $15 billion. This confidence comes from our expectation that GM global production and wholesale deliveries will be up sharply in the second half. GM has also done something unique in the industry to help secure our future EV production.We have binding agreements securing all battery raw material to support our plan for 1 million units of annual EV capacity in North America in 2025. These are commitments with strategic partners for key materials like lithium, cobalt and nickel. This includes new multi-year agreements announced today by Livent Corp., for lithium, and LG Chem, for cathode material The report also touted GM’s strong credit rating and current and future lineup of EVs with photos and details When addressing spending discipline and measured hiring, Barra said, Regardless of the circumstances, we will continue executing from a position of strength.” Take Away: More signals pointing toward a second half normilazation Walmart reports price cuts as profits decline but same store sales increase by 6% The largest cuts in prices are on clothing and general merchandise, their most profitable items Higher food and fuel prices pressuring consumers cited for the move CEO, Doug McMillan expects this trend to continue through the holiday season but says there are strong back to school sales Following the price break announcements, after hours trading of Walmart, Amazon, and Target stock all fell Take Away: Noticing a trend? What can you do to ease the pressure where it hurts? Pink sauce is all the rage on on TikTok…but what is really in it? Social media celebrity Chef Pii is catching praise and shade for her creation of a new dipping sauce…pink sauce Garnering over 80 million
Mon, July 25, 2022
Smoke On The Water (and the economy), Minority Dealer #s Rising, Staying Close To Home
Shoot us a Text. We’re kicking off a great week with some optimism on the economy. How about that?! We talk through Cox, Chief Economist Jonathan Smoke’s time with us and the All Things Used Car Community last Friday. We also talk about the rise in numbers of Minority Dealers across the country, as well as a Harvard collab with the Census Bureau that studies how far young adults are moving (or not moving). Recap Jonathan Smoke on ATUC Took us to school on what a recession is. Hint: It’s not defined by a single, popular metric of 2 negative quarters of GDP growth but “A broad based economic decline that last for more than a few months” Net import gain, and other factors were accounting factors that lowered GDP Goods stuck on ships finally getting through ports as well as inventory Unemployment rate also a major indicator and seem to be holding strong Consumer spending AND business investment are both up in Q1 Certain sectors feeling some pain like tech, but certainly not ‘broad based’ Predicts stronger than normal used sales Take Away: Don’t believe what you read, believe what you are seeing…but keep paying attention! Minority Dealers Are On the Rise Net increase of 123 since 2019 with more growth slated for 2022 NAMAD President, Damon Lester said about the goals set out by OEM’s in 2020, "It was the first time in a very long time that manufacturers came out and made a commitment in writing to the world about their [diversity and inclusion] vision, what they believed in, what their goals were and what they wanted to achieve," "That helped us because most of the time we've seen commitments just written to us and not to the world, so that level of transparency really helped us in having a whole different level of accountability." Asian-owned dealerships grew most last year with 62, now totaling 361. African American stores rose by 27 to 292 after several years of dormancy and Hispanic-owned stores were up 17 in 2021 to 591 The 2007-2008 recession severely impacted minority dealers as they’re numbers dropped from 1,805 in 2006 down to 875 by 2011. They have been on the rise ever since “ AV Fleming, executive director of the Ford Minority Dealers Association, said he wouldn't be surprised if the automaker topped its 2021 performance this year.” Take Away: Accountability, diligence, and hard work seem to be the winning formula here. Young adults are staying close to home more than ever A research paper collab released las
Fri, July 22, 2022
Amazon Doctors, Return Of The Rebate, Request To Ditch the Steering Wheel
Shoot us a Text. Rounding out another great week of troublemaking, we’re talking about what a world looks like where Amazon knows your most private details, what the return of the rebate might look like and when, and Ford and GM ask the government for permission to go full autonomous. Amazon gets deeper into Medical Care with announced merger w/ One Medical One of Amazon's largest acquisitions to date at $3.9B One Medical is a high loyalty, subscription based, brick and mortar primary care network operating in 19 markets and 100+ offices across the country Amazon already offers “Amazon Care” for its 1.1M employees Massive data privacy concerns are coming from One Medical customers and regulators Amazon has spent the last five years methodically squandering the Earned Trust needed for customers to embrace an acquisition like this. This is disappointing along multiple axes. My cancellation request has been submitted to @onemedical. The Return of the Rebate ? “Right now, there is scant inventory, dealers are making more money than they know what to do with and manufacturers are stoked because they don’t have to (offer rebates),” he tells Wards. “But that will change.” First, “manufacturers are sitting on millions of vehicles they can’t deploy,” West says, referring to the partially built vehicles in abeyance.When the microchip shortage ends –predictions on when that might occur vary – and those vehicles are fully built, what will automakers do next? “I think they’ll take a giant ramrod and shove them down dealers’ throats,” West quips. “They don’t have a choice. They still have to pay the unions whether they build vehicles or not. “Most of the OEMs are not building vehicles at the volume they need to find efficiencies at their facilities. But if you proceed on the assumption that eventually auto manufacturing will normalize, and the industry gets everything it needs to build as many vehicles as it wants to build, then you have a free-market environment again.” Take away: What do you think will happen? Let us know crew@asotu.com , we’ll post some of the comments GM and Ford ask US regulators for <a href='https://www.nada.org/nada/nada-headlines/gm-ford-seek-us-ok-deploy-self-driving-vehicles-without-steering-wheels?utm_source=ASOTU&utm_medium=email&utm_campaign=ASOTU%20Daily%20Pushback%20194%202022-07-22%20%28YpTUFr%29&utm_id=YpTUFr&utm_term=few%20missing%20features&_kx=MCmu4oGUelc-pxx1D3L37AUfzbCq9F25Yi2_qIcsfeM%3D.QU8tVR#:~:text=GM%20
Thu, July 21, 2022
Ford Making Big Cut To Salaried Workforce, An Early Cybertruck, Amazon Sues Fake Reviewers
Shoot us a Text. Today we’re talking about a major cut in salaried positions at Ford, the Q2 Tesla investor call that gave some insight into when Tesla’s Cybertruck may be entering the market, and a legal move by Amazon intended to keep global site reviews honest. Ford to cut 8,000 jobs from Ford Blue and other salaried positions to grow profits CEO Jim Farley said the company is not being competitive on cost and “under earn” on both ICE and EVs according to a Bloomberg report Ford employs 31,000 people in the US where the vast majority of the cuts are going to be made Previously, Farley has stated his intention to cut $3 Billion in costs by 2026 as he wants to make Ford Blue the primary cash engine for the entire business Take Away: Lean and profitable seems to be a common, post pandemic trend Tesla’s Cybertruck may see first deliveries as early as mid - 2023 On an investor webcast, CEO Elon Musk delivered the news. The last time the Cybertruck delivery was mentioned was in the Q4 report from 2022 when Musk said, “Hopefully next year” Profits rose while revenue declined Tesla converted 75% of it’s Bitcoin holdings to cash adding just under $1 Billion in liquid capital You can check out the most recent shareholder deck here Take Away: Underpromise, overdeliver…but we’ll see Amazon sues thousands of FB groups soliciting fake product reviews Over 10,000 lawsuits were filed yesterday against the administrators of FB groups who solicit and incentivize other users to leave fake reviews on Amazon sites across the globe “Our teams stop millions of suspicious reviews before they’re ever seen by customers, and this lawsuit goes a step further to uncover perpetrators operating on social media,” Dharmesh Mehta, Amazon’s vice president of selling partner services, said in a statement. “Proactive legal action targeting bad actors is one of many ways we protect customers by holding bad actors accountable.” Earlier this year, Meta identified and removed one such group that had over 43,000 users who had been dodging detection by removing letters when spelling words that might trigger further investigation Take Away: Consumers typically trust one another and keeping reviews plentiful and clean is an important step in retailing Get the Daily Push Back ema
Wed, July 20, 2022
VW CEO Becomes Scout CEO, Netflix Loses More Subs-Changes Model, Kia Skeleton NFTs
Shoot us a Text. Welcome to Wednesday Troublemakers. Today we’re covering VW of America’s CEO, Scott Keogh’s move to be the CEO of new VW EV brand Scout. We also talk about Netflix continued slide and plans to add ads, as well as Kia’s latest commercial that takes another swing at integrating with NFT’s VW of America CEO Scott Keogh steps into new role as CEO of VW’s new EV truck brand ‘Scout’ Came from being CEO of Audi of America and was the first american to occupy the CEO seat w VW in 2018 “ "It was a simple, straightforward decision: Either, one, stay in my existing role and continue to operate and do it accordingly and keep rocking and rolling, or take the chance of a lifetime to do a startup company," Keogh told reporters during a quick conference call Tuesday from a board meeting in Chattanooga. "I think if you're an American and a businessman and person of humanity, in my mind, it was no choice: to do a startup, to be entrepreneurial, and to revive an iconic American brand." Pablo Di Si, 52, who has headed VW's South American region, is becoming CEO of Volkswagen Group of America as well as CEO of Volkswagen North American Region. The transition will happen on Sept 1st Take away: Love the entrepreneurial spirit! Now how about those dealer network questions? Netflix loses subs for second month in a row, forecasts growth, and announces lower cost, ad-supported subscription in early 2023 “We’re talking about losing 1 million instead of losing 2 million, so our excitement is tempered by the less-bad results,” Netflix Chairman and Co-Chief Executive Reed Hastings said in an analyst interview to discuss the results. “Losing a million and calling it success” is tough, he said. “But really, we’re set up very well for the next year.” Advertisers were locked out of the platform for years, but that is changing Product placement is set to increase from brands like Peloton and Hyundai New ad supported platform would open up those of the 220M subs who might choose the ad supported version Netflix will be partnering with Microsoft to provide the technology to deliver targeted ads to viewers Several advertisers have already expressed interest in signing long term, multi-million dollar deals Take Away: Evolve or die. Oh look, another place to run OTT. Kia deploys NFT characters in commercials to let viewers get one for free Three popular characters from the Dead Army Skeleton Klub (DASK) appear in the commercial promoting the Kia Soul Viewers can scan the in-commercial QR co
Tue, July 19, 2022
Launching A New (Auto Collabs), Gaming While Driving & Old Designs Made New
Shoot us a Text. We love days like today. For one, we are wheels up to Philly to keep scoping everything out for you with a great ASOTU CON in mind. And two…we are meeting Michael Cirillo there, because “why not!?” Today we give you more insight into our newest podcast launching, gaming coming a lot closer to vehicle screens, and celebration of history in design by Hyundai with their new concept car. Auto Collabs: Real Talk Conversations with Innovators The walls are closing in on Franchised Retail Auto Dealers as the industry is moving at break-neck velocity toward a new way of doing business. The convergence of economic and social volatility, new entrants like Tesla and Carvana, and the new rules of retail are putting Auto Dealers in a crucible that will either destroy them or refine them. Auto Collabs brings you deep into real-talk conversations with the brightest operators and innovators in the Retail Auto Industry who believe the Dealer network is the single greatest way to serve the transportation needs of communities across the country. The only way Retail Auto Dealers and Industry Partners will survive is by committing to innovate together, so let’s get started. Welcome to Auto Collabs. Gaming engine, Steam, to be running on Tesla’s soon Steam is a gaming platform that boasts over 30 games and allows users to buy, sell, download, play, connect w other users, share, and monetize Musk still hasn’t followed through on promises to bring Cyberpunk 2077 and The Witcher to newer Model S and X vehicles, which come outfitted with an AMD Ryzen processor and a discrete AMD RDNA 2 GPU. But a potential Steam integration could be an indication that Tesla’s inching closer to its goal. Take away: Vehicles are becoming an ever more seamless experience with the rest of digital life Hyundai working to recapture the magic of car culture through new eyes with the RN22e and the N Vision 74 According to Hyundai, the RN22e has a 77.4kWh battery with 400 or 800V fast multi-charging capability, as well as a maximum speed of over 250kph (155mph). And if you want to indulge in what Hyundai describes as an “emotional driving experience,” you can take advantage of the RN22e’s N Sound Plus feature that generates fake engine sounds as you drive. The N 74 was modeled after the concept 1974 Pony Coupe who was designed by the man who went on to design the Delorean Do yourself a favor and watch the 10 minute release video Take away: Car cultu
Mon, July 18, 2022
Is This the End of the Chip Shortage!?, Retail Report on Millennial Path to Purchase, Philly Philly
Shoot us a Text. We’re firing up the Monday machine as we examine the findings of a recent retail report on the more complex journey of the Millennial buyer. We also cover earnings reports and comments from chip manufacturers and electronics retails which look to be signaling the end of the chip shortage. We also talk about what’s going down in Philadelphia, PA tomorrow. Millennials follow a more complex path to purchase Verint Experience Index for Retail Report 2022, (ranks the omnichannel experiences of the top 25 largest retailers in the U.S. based on revenue) fewer than 36% of surveyed Gen Z and millennial consumers under 40 prefer to visit stores when interacting with retailers, compared to more than two-thirds of surveyed boomer shoppers 57 and older. Over 75% of these respondents using at least one other digital resource – ratings websites, influencers, and social media – to inform purchasing decision Over 51% place high value in ‘click and collect’ at an actual retail location as only 28% make purchased via the retailers website Jenni Palocsik, VP, marketing insights, experience and enablement for Verint says, ““Gen Z are by no means the only demographic that brands should focus on to adapt and enhance the customer journey, but since they are most likely to engage digitally, seamless experiences are the biggest drivers of better customer satisfaction, NPS and repeat business.” Take away: Prioritize the Gen Z experience the standard and everyone else will love it too Some chip makers are signaling the end of the chip boom According to the Philadelphia Semiconductor Index, which tracks major global chipmakers like Intel Corporation, Qualcomm, ASML Holding, and Nvidia Corporation, as well as TSMC, rose by 1.9%. On an earnings call, warnings were issued by TSMC, Taiwan Semiconductor Manufacturing Company, that stockpiling by manufacturers in the early days of the pandemic are likely to cause a reduction of orders as chip inventories are pared down Intel CFO David Zinsner, mirrors this sentiment, projects lower Q3 revenue Acer CEO Jason Chen says “the situation has changed” regarding the chip shortage and is getting sales calls again, asking him to buy more chips TSMC reducing capital expenditures and pushing orders for chip manufacturing equipment Consumer electronic demand is waning, however, demand for cars remains strong Crypto crash may also be helping the chip situation Take away: Chip shortage days coming soon to the history books, inventory n
Fri, July 15, 2022
Auto is EVERYWHERE, JP Morgan’s Good(ish) News, KBB Brand Image Awards, Voting Spiders
Shoot us a Text. We’re wrapping up another week with a consumer revelation about the Auto Industry, JP Morgan’s performance may be signaling a softer economic landing that the rhetoric suggests, KBB releases their annual Brand Image Report, and one kid designs a voting sticker that will make you cringe (and laugh). JP Morgan performance is NOT clearly signaling a downturn Second-quarter profit at JPMorgan JPM -3.49%▼ Chase & Co. fell 28% from a year earlier even as the nation’s largest bank said it is seeing few signs that a recession is imminent, underscoring the uncertainty looming over markets and the economy. JPMorgan’s performance is typically viewed as a barometer on the broader economy given the bank’s insights into consumer and corporate financial health Take Away: The news should only be a portion of your barometer. Many sources are more level headed about financial futures than mainstream media may be portraying. KBB brand image awards Tesla taking top spots in the luxury category Honda maintaining best brand presence The awards are crowd sourced from over 12000 opinions and the annual Brand Watch Study by KBB Take Away: Must feel good to be a Honda dealer right now! “I Voted” spider Ulster County, NY held a contest for their new ‘I Voted’ sticker and would have never expected the results they got. One of six finalists, the drawing by 14 year-old Hudson Rowan obtained over 90% of the popular vote. The image went viral across the internet, leading to the overwhelming win. “The county’s election commissioners, Republican John P. Quigley and Democrat Ashley Dittus, acknowledged that they chose Rowan’s design as one of six finalists because they knew it would get attention, especially on the internet, and in turn boost voter turnout .” Take Away: If you think culture is predictable, you’re not paying attention Get the Daily Push Back email at https://www.asotu.com/ Rock with us LIVE at ASOTU CON! Tickets: https://www.asotucon.com JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent ema
Thu, July 14, 2022
Retail CEO Replacement, Buffett Goes Big On Oil, Dollar Surpasses Euro
Shoot us a Text. We’re moving through a great week as we talk about broader changes in retail leadership and why we should care. We also cover the reasoning behind Berkshire Hathaway’s push deeper into oil, the Dollar being worth more than the Euro for the first time in 20 years, and maybe a bonus story :) Top Retail CEOs are being replaced as the landscape is shifting Gap, Bed Bath and Beyond, Dollar General, Under Armor, Home Depot (to name a few) are replacing their CEOs amidst a changing retail landscape Some companies postponed succession plans during the pandemic however the changes are accelerating due to the necessity of specific skill sets “The landscape of retailing changed during the Covid era,” said Craig Johnson, the president of consulting firm Customer Growth Partners. “The skills necessary for a CEO to succeed today are much broader. Take away: Auto Dealers are retailers. There are peacetime generals and war time generals…strap up. Buffet’s Berkshire going in big on US Oil They have been ramping their position in Occidental Petroleum Corp since February and bought 12 million more shares over two days this month bringing their total stake to 18.7%. The largest shareholder in the company Once they own 20%, they can report earnings on their P&L, until now, they can just report dividends This confidence indicates a high value being placed on energy independence as Occidental is an exploratory company Take away: EV batteries might be sexy, but oil still does the work. Buffett’s got an ok track record of seeing through the hype. The Euro has fallen below the Dollar for the first time in 20 years Growing concerns about energy independence amidst Russian aggression have led to devaluation of the Euro Currencies tend to rise when the central bank raises interest rates The dollar has also been strong in recent months, lifted as the US central bank raising interest rates, and investors seeking the safe haven of dollar assets in times of global turmoil This makes imports based on the USD more expensive…like oil Avg gas price from: 7.65 per gallon in Germany to 11.35 in Hong Kong Take away: Yesterday’s average of 4.63 feels just slightly less stinging Follow up on our story about subscription based car features
Wed, July 13, 2022
In-Showroom Interview with Patrick Abad, GM of Beaver Toyota, Car Repos, Subscription Seats
Shoot us a Text. We’re waking up Wednesday morning fresh off a trip to Atlanta and yes, we brought you something back. We talk to Beaver Toyota GM Patrick Abad about popular recession rhetoric, and how he is taking it in stride. We also talk about car repossessions on the rise and subscription heated seats. BMW offering subscription heated seats One small step for OEMs, one giant leap for testing what consumers will go along with. BMW is officially selling heated seat subscriptions for $18 a month. The monthly sub-model is not the only option. Customers can pay for a year ($180), 3 years ($300), or even lifetime access for $415. Microtransactions. BMW has been putting features behind subscriptions since 2020, along with Audi, Cadillac, Porsche, and Tesla. The heated seat option has not been added to the US digital store. We can only wait and see if - or when - that changes. Take away:Building cars with features that may never be turned on during a chip shortage seems like a really strange plan. What do you think? Car repossessions on the rise " Lucky Lopez is a car dealer who has been in the business for about 20 years. In recent meetings with bankers, where he bids on repossessed vehicles before they go to auction, he has noticed some common characteristics of the defaulted loans. Most of the loans on recently repossessed cars originated during 2020 and 2021, whereas origination dates are normally scattered because people fall on hard times at different times; loan-to-value ratios, or the amount financed relative to the value of the vehicle, are around 140%, versus a more normal 80%; and many of the loans were extended to buyers who had temporary pops in income during the pandemic. Those monthly incomes fell—sometimes by half—as pandemic stimulus programs stopped, and now they look even worse on an inflation-adjusted basis and as the prices of basics in particular are climbing. Part of the problem is that some consumers’ incomes were temporarily high as the pandemic brought about debt forbearance, pandemic stimulus checks, enhanced unemployment benefits, and, in some cases, forgiven loans from the Paycheck Protection Program. Pamela Foohey, law professor at Cardozo School of Law at Yeshiva University, warned in 2021 of an auto-loan crisis. She wrote then that heading into the pandemic, auto loans outstanding were at record levels and auto-loan delinquencies were hitting new highs almost every quarter. The bubble was about to burst, it seemed, but government pandemic responses meant the bottom didn’t fall out of the auto-loan market. The measures were temporary, she warned then, and the bubble has since
Tue, July 12, 2022
Spending a day in Hot-lanta, Why We Are ‘Slack-splaining’, and ASOTU CON Speaker Notes
Shoot us a Text. It’s a good day for ASOTU because we get to spend some time on the ground and in the dirt of a real-live dealership! We’re also talking about why we’re spending so much time ‘slack-splaining’ and what we can do to fix that. Finally, we’re announcing our first speaker for ASOTU CON in September. Jim Mckelvey will be our featured keynote speaker at ASOTU CON Are we losing more time than it’s worth ‘slack-splaining’? Our brains are hardwired to assume the negative. A survey by the communication platform Loom of more than 3,000 office workers found that 91% have had digital messages misunderstood or misinterpreted at work, and for 20%, the misinterpretation has caused them to get reprimanded, demoted, or even fired. Research from Grammarly and The Harris Poll found that employees spend nearly half of their workweek on written communication alone. “The shift to a more fragmented, dispersed workplace has exacerbated these challenges. As we work more asynchronously and across more channels and systems, this creates more opportunities for miscommunication Rereading or overthinking email and instant messages is taking time and impacting productivity. The same is true of having to resolve confusion after a misunderstanding or miscommunication over a digital platform. In the Grammarly poll, 76% of business leaders agree that they and their teams spend too much time and energy resolving miscommunications. …”An overreliance on emojis in the place of actual content can come off as unprofessional, disingenuous, or even juvenile. It takes time and careful observation of cultural norms within teams and organizations to find that sweet spot where they’re truly useful.” Take away: Make calling or video conferencing a much earlier option to save time AND relationships Get the Daily Push Back email at https://www.asotu.com/ Rock with us LIVE at ASOTU CON! Tickets: https://www.asotucon.com JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion/ Hosts: Paul J Daly and Kyle M
Mon, July 11, 2022
40 Under 40 Props, Record new car payments, 18x Value for F1 Licensing
Shoot us a Text. We’re kicking off a week of troublemaking by giving props to the Auto News 40 Under 40 list. We’re also covering the rise to record new car loan payments, as well as trying to learn a thing or two about how F1 has become a household name through telling great stories. Congrats to the Automotive News 40 under 40 young dealership leaders “This year’s stars have led digital retailing transformations, found new ways to stock vehicles during an inventory crisis and chipped away at recruiting challenges.” Some resident OG Troublemakers: Ashley Cavazos, Director of Digital Performance, Walser Automotive Group Mike Cavanaugh, VP Operations, Driveway Jennifer Scarbrough, GM, Swope Hyundai-Genesis of Elizabethtown Ben St. Ours, Managing Partner, CMAs Valley Honda Jeff Ramsey, Variable Operations Director, Ourisman Automotive Group Average loan payment for a new car has reached an all time high June Monthly payments on new car loans averaged an all-time high of $686, according to Edmunds. Data began in 2005. Up 4% from January and 13% YoY Record 12.7% of buyers now have a monthly payment of over $1000 (in 2019 it was less than 5% In addition, avg down pmt up 27% to $6,333 Repayment terms are also being extended w more and more beyond 7 years Used Car payments also near a record, currently up 12% YoY at $554 Take Away: Take note of the most struggling middle and do everything you can to empathize and help How F1 became such an unstoppable brand In 2012 the sport lost almost 25% of it’s worldwide viewership and sold 1.6 Billion worth of shares at a 9B valuation It 2016 F1 needed another cash injection and sold the entire company to Liberty Media for only $8B Liberty launched a targeted US campaign including the 2019 docuseries “F1: Drive to Survive” which featured all 20 drivers across 10 teams and it was a hit Avg viewership per race went from 557k in 2018 to 1.4M in 2022 (up 47% from 2021) Using it’s current deal w ESPN, value has increased 18x in its licencing value (5 - 90M) Content marketing and branding are the core strategy. NOT paid media. Other sports following suit of
Fri, July 08, 2022
Smoke Shrugs Recession Talk, Costco Talks Hot Dogs, Markups.org Talks Straight
Shoot us a Text. It’s a beautiful Friday and we’re covering Cox Chief Economist Jonathan Smokes latest bi-weekly Auto Market report. We’re also talking about the retail mindset and how it is affected by the price of Costco hot dogs and Dealership markups from across the country. Cox Chief Economist Jonathan Smoke’s report shrugs off recession talk in latest bi-weekly Auto Market report Strong labor market, high credit availability, and elevated savings point to stability in purchasing power Limited supply continues to insulate the industry from any drop off in sales Noted in an ancillary interview that the more consumers hear about a recession the more they are likely to pull back on spending “My biggest worry from the dealers’ sentiment data is that the outlook is down and lower than the current market,” says Smoke. “Dealers are naturally optimistic and then it's not common to see them less enthused about the future…but such was the case in the second quarter. However, the numbers are still positive. I think the key issue is uncertainty, and especially uncertainty from things that dealers cannot control, namely the economy and new-vehicle production.” Take away: Don’t believe everything you hear, but be ready anyway Costco fends off internet mis-information about raising the price of its $1.50 hot dog deal On its Q3 earnings call, SVP Bob Nelson who was filling in for the vacationing CFO talked about price stability throughout the call. Then said: "Finally, I want to address some incorrect information floating around on social media and a few other media outlets, claiming that we have increased the price of our $1.50 hotdog-and-soda combinations sold in our food courts," Let me just say the price, when we introduced the hot-dog-soda combo in the mid-'80s, was $1.50. The price today is $1.50, and we have no plans to increase the price at this time." Some less-famous food court items received a bump. Chicken bake from 2.99 - 3.99 and a fountain soda from .59 to .69 Take away: Costco understands the brand play Enthusiast website Jalopnic features Dealership markups across the country complete with commentary Range from a modest 1,398 markup on a Hyundai Palisade to
Thu, July 07, 2022
EV Battery Subscriptions, Fresh Flower Psychology, Dam History
Shoot us a Text. Today we cover a new EV entrant with a very creative way to solve the financing problem. We also talk about the psychological impact of fresh cut flowers and why it matters for your showroom. Finally, we take a look at a few lessons to be learned from this day in history way back in 1930. New EV maker VinFast to begin selling vehicles with a separate battery lease Offering 2 row VF 8, and 3 Row VF 9 with leases that separate the vehicle lease from the battery lease Prices start at $40,700 and $55,500 for the respective 8 and 9 models with the monthly battery ‘subscription’ as an additional cost $35 for the VF 8 and $44 for the VF 9 for 310 miles Additional miles are .11 and .15 respectively Unlimited miles costs $110 and $160 Take away: ‘conventional’ thinking has officially been beaten and left for dead The reason you see flowers at the front of the grocery store is very intentional According to, Paco Underhill, the founder and CEO of behavioral research and consulting firm Envirosell, “It’s very simple. If you can get someone's nose and saliva glands working, they become a much less disciplined shopper.” Other subliminal messaging includes the ability to keep things fresh Also very high margin items…close to 50% Take Away: What can you do to set the tone for your showroom and service entrance Today in History, July 7th, 1930 construction on the Hoover Dam began Planning began almost 30 years earlier in 1902 21,000 men worked around the clock for five years and finished two years ahead of schedule and millions of dollars under budget Provides power to over 1 million people and reliable water to many more Take Away: Every horizon has a ‘now’ Get the Daily Push Back email at https://www.asotu.com/ Rock with us at ASOTU CON! Tickets: https://asotucon.com JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion/ <
Wed, July 06, 2022
July Auto Intel Report w/ Guest Steve Greenfield
Shoot us a Text. Today we have Steve Greenfield returning to the show to talk through his July Auto Intel Report where we’ll summarize some of the biggest happenings in Retail Auto over the last 30 days and get some insight on what they mean for the next 30, 60, and 90 Days. Steve Greenfield, Founder/CEO of Automotive Ventures is our guest today: What’s driving Dealer valuations and what is likely to happen? Agency model creep OEM’s controlling lease end volume F&I headwinds : Regulation, OEM Control, Online Selling Benefits of scale Sign up to receive his monthly Auto Intel Report Here Follow Steve on LinkedIn here Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ASOTU Instagram: https://www.instagram.com/automotivestateoftheunion/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, July 05, 2022
Chevy’s first NFT flops, People controlling the Fed with their minds, Tesla’s pothole tech
Shoot us a Text. Now that the holiday is over, we can really start off the second half of the year as we launch ASOTU tickets! We also talk about Chevy’s first NFT of a Corvette Z06, how the Fed is paying a lot of attention to how you are thinking about inflation, and Tesla’s new pothole adjusting tech that will hopefully make all of our rides a lot smoother. Consumer’s inflation psychology is affecting the Fed’s decision making process Main premise: people’s expectations of future inflation directly drive their decisions today, leading to more inflation. Landlords demand higher prices today, workers ask for higher wages. Officials didn’t react initially to inflation last year because of belief and rhetoric that it was due to temporary situations therefore the general public didn’t react. When inflation is low, people don’t pay attention, when its high, the opposite History lesson: 30 year mortgage rate hit 18.45% in late 1981 SO did CD returns Take away: Being a great and efficient operator is inflation proof Zero bids on Chevy’s very first NFT, even though it came with a free Z06 The NFT, which depicts a lime green Corvette Z06 blasting through a cyberpunk landscape, was created by artist Nick Sullo, who goes by xsullo online. The upcoming auction pairs Sullo’s NFT with a custom-painted 2023 Corvette Z06 color-matched to the art. Vin is in Binary Vehicle is the only one made with option code RFT and in color “Minted Green” Originally held from June 20-24 then relaunched for 24 hours stating some bidders “missed” the bidding window Trevor Thompkins, a spokesperson for Chevy, shrugged off the disappointment in a statement to Corvette Blogger. “Our first step into Web3 has been educational, and we will continue to explore ways to leverage technology to benefit our customers,” Thompkins said. At least GM took the Q2 sales win back from Toyota selling 47k more vehicles ;) Take Away: NFT’s only have value if the bidding community understands both the items AND the technology. And did we mention brand yet? Tesla is finding a way around those pesky potholes In a new 2022.20 software update, the automaker writes in the release notes about a new feature of the “Tesla Adaptive Suspension” system: “Tesla Adaptive Suspension will now adjust ride height for an upcoming rough road section. This adjustment may occur at vario
Mon, July 04, 2022
4th of July vs. Canada Day
Shoot us a Text. In this special holiday episode, Paul and Kyle are joined by none other than Canada's best, Michael Cirillo, host of the Dealer Playbook Podcast to discuss his first 4th of July as a US resident and how it is so different from our northern border friends. So throw a steak on your pre-heated grill and it will be cooked before the episode is done. Assuming you like it cooked medium rare like all logical steak eaters. Get the Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ---- Rock w/ us on social: Insta: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FB: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, July 01, 2022
2030 EV Intel, AppleGas, Mid-Flight Live Streaming
Shoot us a Text. As much of the country starts moving around for the holiday weekend we’re bringing a summary of OEM EV plans, talking about the upcoming ability to pay for gas while still in your car, and the real possibility of in-flight high speed internet service. Forget the AppleCar, Apple CarPlay might have us paying for gas while we’re still in the car Navigate to nearest station, pull up to pump, ba-ding! Paid. Dallas based, Sinclair, operator of 1600 stations plans to deploy the tech Jack Barger, the company's senior vice president of marketing said, "We are excited by the idea that consumers could navigate to a Sinclair station and purchase fuel from their vehicle navigation screen." Donald Frieden, chief executive officer of Houston-based P97 Networks, which makes the digital plumbing that many fuel companies will use to connect their apps to cars, said, "It's a massive marketplace, and consumers really want to take friction out of payments," Take Away: Seamless experience, bragging rights, less time looking at the actual price of gas…win. SpaceX’s Starlink approved by the FCC for use on commercial flights According to Musk, could offer speeds of 500mbps Rules indicate Starlink must accept interference from certain frequency bands Competitor Visaat has inked a deal w Southwest and Amazon also has plans to get 1000s of satellites up to get in the game Take Away: First live streams from the air? Recent AutoNews Intelligence report summarizes OEM’s electrification plans through 2030 Ford plans on being the #2 global EV producer by 2026, behind Tesla Cadillac and Buick will be GM’s first all-EV brands by 2035 Hyundai/Kia/Genesis will have 31 new EV models by 2027 VW, half of all sales to be EV by 2030 and 100% by 2040 Volvo 100% Electric by 2030 Honda going for 30 by 2030 Toyota taking a measured approach saying they will offer a Hybrid version of all vehicles until their customers are ready for a full transition Had the first hybrid 20 years ago Currently deploying hydrogen fuel cell tech for heavy trucks in their Georgetown, KY plant and working on h
Thu, June 30, 2022
Half-Way Home for ASOTU, the Markets, the FTC, and You
Shoot us a Text. Today we bring you up to speed from a wild start to 2022 as we talk about what the trends in the markets, proposed FTC rules, and what one Dealer is doing to serve the community mean for you. The first half of 2022 comes to a close, markets are down but not out Worst performing market since 1970 The only notable item that is up are commodities like oil All eyes are on inflation and the Fed as interest rate increases are the primary tool to stave off inflation The good news is that all is not lost. In every year the S&P 500 dropped at least 15% the first two quartiers ( 1932, 1939, 1940, 1962 and 1970) it has risen an average of 24% in the second two quarters, according to Dow Jones Market Data Take away: Although the markets affect all americans, we all know the story of Dealership profits are not tied at the hip with the S&P 500 The FTC is coming for Dealer Add-Ons and Advertising in new proposed rules in a June 27th notice of proposed regulations which passed by a 4 to 1 vote New regulations would ban add-ons they determine add no value to the consumer Would require additional expressed consent for add ons like Gap coverage, extended warranties that overlap the factory warranty, and other add ons "As auto prices surge, the commission is taking comprehensive action to prohibit junk fees, bait-and-switch advertising and other practices that hit consumers' pocketbooks," FTC Bureau of Consumer Protection Director Samuel Levine said in a statement June 27. "Our proposed rule would save consumers time and money and help ensure a level playing field for honest dealers." The dissenting opinion cited unintentional consequences that would limit competition. New entrants such as Tesla were mentioned with the comments that any proposed bill would be incomplete even as its finalized Bans all products without benefit Requires dealers to post all possible add on options and prices online Bans on misleading prices online Disclosure and declination in writing of the "Cash Price without Optional Add-ons. Express, Informed Consent" on F&I products and other add-ons Take away: Although this would cause some pain if passed, it will build trust Upstate NY Dealer puts on high speed charity event Gault Toyota of Johnson City, NY wen
Wed, June 29, 2022
iPhone Turns 15, Initial Quality Takes A Dive, Adults Crave More Mindspace
Shoot us a Text. On this beautiful Summer Day we’re talking about the birthday of the iPhone and it’s impact on society. We also cover JD Power’s Initial Quality survey and how things aren’t trending in the right direction, as well as new report from the American Psychiatric Association showing that a large portion of the adult population are too stressed to do normal things and what we can do about it. 15 Year Anniversary of the public release of the iPhone . June 29, 2007 Biggest player at the time was Blackberry with the Curve “Truly, we just thought this was gonna be a fun, easy-to-use thing when you want to do a few messages,” Tony Fadell, a former senior Apple executive who worked on the original iPhone, told the WSJ. “We didn’t think it was going to become the center of your life.” Sold 6.1 million units until it was discontinued a year later 233 million iphones in 2021 128mb of memory and 4 gb of storage (now 4gb of storage and 128gb memory) 2mp rear camera w no front facing camera Take away: Who’s feeling old JD Power initial quality index hits record lows with an 11% increase in reported issues On average 180 problems per 100 vehicles. Buick lowest at 139 v Polestar at 328 Remote work, chip shortage, and high prices cited as primary reasons David Amodeo, director of global automotive at J.D. Power, said "In general, initial quality has shown steady improvement throughout the history of this study, so the decline this year is disappointing — yet understandable. Automakers continue to launch vehicles that are more and more technologically complex in an era in which there have been many shortages of critical components to support them." Releasing vehicles without certain expected features and infotainment systems account for a significant number of reported problems Take away: Any perceived ‘problem’ is going to reflect on the dealer. In many of these cases, more communication and delivery attention could have reduced these points of frustration. That IS in your control. According to the APA, more people (especially millennials (48%)) want more ‘mind space’ and less noise 32% of adults (48% Millennials 37% Gen Z Adults, 32% Gen X, 14% Boomers, 3% Older adults) are so stressed they struggle to make everyday decisions like what to wear. Brand marketing has been about dominating headspace however savvy brands are doing so by giving consumers some of that space back<ul
Tue, June 28, 2022
Episode 200! Ford Keeping Used EVs, NFT.NYC
Shoot us a Text. We’re celebrating our 200th Episode of the Automotive Troublemaker by….bringing you essential news and insights of course :). Today we talk about Ford keeping their off lease EVs, summarizing the Super Bowl of NFTs, and studying the first 90 days of a new hire. Ford stops customers from buying vehicles off lease All Ford Credit lessees will not be able to buy their vehicle off lease as of June 15 in 38 states. (Remaining 12 will be included by year’s end Customers will be able to ‘renew’ their lease into a new model Primary objective is to keep battery materials within the Ford ecosystem for recycling and being put into new vehicles Take Away: That’s one less used car per EV lease written by Ford Credit and one more reason to create a multitude of banking relationships NFT.NYC touts strong support for NFT marketing in the midst of crypto winter Different, but still optimistic, tone due to crypto markets being down over $2T Over 15,000 artists and enthusiasts attended including major musical acts like The Chainsmokers and Madonna While Crypto currency is about tendering payment, NFT’s are about building brand through community CEOs from Samsung, to Doodle (platform creating and selling more than $300M in NFTs), to OpenSea talked about brand application from the real world to the metaverse Take away: If you haven’t realized it yet, community is one of the strongest human instincts. NFT’s are just the conduit. You should keep learning about them. We guarantee that some of your staff is willing to teach you. Employers are putting a renewed emphasis on the 90 Day Rule In a high turnover environment, reducing “quick quits” is more important than ever Many companies offering post 90 day bonus incentives Carrier corp pairs new hires with a “buddy” Data shows that if someone stays for 90 days, they will likely stay at least one year One company in the article reduced turnover from 37% in January to 16% currently by implementing more intentional onboarding It’s all about connection to the company’s trajectory, people, and community Take away: A little more intentionality goes a long way in the first weeks Get the Daily Push Back email at https://www.asotu.com/ Listen to other e
Mon, June 27, 2022
Money Furnaces, Vehicle Subscriptions Are Back, Returnless Returns
Shoot us a Text. It’s full speed ahead this Monday as we hit the ground running on some lingering items from last week and take a fresh look at what’s happening with Automotive, retail, consumer demand, and preview what’s in store this week as we move toward closing out June with massive momentum. Catch up stories from last week: Carlotz closes 11 stores (50%) and reduces workforce by 25-30% Consignment model, went public in 2021 (share price 11.49 to .46) May release facilities to ‘interested parties’ New Tesla Factories are ’ gigantic money furnaces ’ - Musk Producing a ‘puny’ amount of vehicles compared to what they could if supply lines were freed up High gas prices aren’t swaying owners and buyers toward smaller cars In 2008 gas was over $4 and there was an exodus to smaller, more fuel efficient vehicles In some segments, there has been an almost 50% increase in fuel efficiency, like the 2022 4WD F150 that has 21 mpg combined Only 17% of SUV owners say they want to downsize It’s all about supply. Very few sedans even being made comparatively to 2008 EV sales are substantially up over 2008, but that is also due to availability Take Away: You can’t change your new car inventory, but you can make some lifestyle marketing cues from this data Vehicle subscription options making a comeback because of EV hesitancy EV leasing company, Autonomy, offers as little as 3 month subscription for Tesla Model 3 with flex payment options between 1k down and 1k mo and 4,900 down, $490/mo Capitalizes on ‘try before you buy’ value prop All fees and insurance included, doesn’t show up on your credit report Take Away: Find a pain point, and work to solve for it. Several retailers (Target, Walmart, Gap, American Eagle) consider the ‘ returnless return ’ With shipping, and logistical cost at all time highs, it’s sometimes cheaper to have consumers ‘keep it’ Net margins 1-5%. Return handling costs can be 15-30% Some companies already have a glut of inventory from many spring clothing items The downside can be extensive fraud <l
Fri, June 24, 2022
Innovation vs. Legislation & The Part They Play
Shoot us a Text. After a week of talking to dealers and industry partners about the balance between customer experience and legal factors in auto retail, Paul & Kyle pause from the typical news recaps to give their insights on the conversations. Get the Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ---- Rock w/ us on social: Insta: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FB: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, June 23, 2022
Sitting w/ NADA President and CEO Mike Stanton and Liza Borches
Shoot us a Text. Paul and Kyle wrap up VADA with a conversation with Mike Stanton and Liza Borches talking all things Franchise Retail Automotive. Get the Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ---- Rock w/ us on social: Insta: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FB: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Wed, June 22, 2022
Trying to Catch Tesla, Travel Expectations Up, & Amazon Robots
Shoot us a Text. We are winding down our time at the VADA convention and have been enamored by the energy and conversations here. Less than 2 weeks from now tickets for ASOTU CON will go on sale, but for now: the news. GM and Ford are racing to the top to take over Tesla, July 4th weekend looks like it will be a record for car travel, and Amazon has implemented their first full autonomous robot to hold down the warehouse floor. The Race for 2030, or is it the race for Tesla? Ford’s approach: fewer, more intentional (and innovative, in their words) models GM’s approach: wide range of EVs across the price spectrum. A Ford spokesman said that “Customers are smart, and we trust them to discern true innovation versus future hype,” and that “We are happy to leave the old-school approach of flooding the zone with 10 mildly different mid-size SUVs to others.” I thought, ‘Well, if the buses go electric, then the F-150 is going to go,’ Jim Farley said. Take Away: After having learned the legislative side of things this week, we know that demand and production are not on level playing fields with each other from a consumer or political standpoint. Record travel expected for July 4th weekend 42 Million people expected to hit the road for the holiday weekend All airlines still expecting record travel this summer Airline cancellations and troubles have been pushing more people to drive Despite rising gas costs, Americans are still using disposable income for experience based travel Take Away: If you haven’t started advertising Summer Travel Service Specials….. Amazon introduces its first ever fully autonomous mobile warehouse robot, Proteus Designed to move large racks, these robots will share the floor w humans as opposed to previous robots who operated in their own caged areas The robots robots have “advanced safety, perception, and navigation technology,” Also showed off a new scanning tech for warehouse workers leveraging their “just walk out” tech featured in Amazon brick and mortar stores that allows workers to simply move packages from one place to another without scanning them Take Away: Necessity is the mother of invention Get the Daily Push Back email at https://www.asotu.com/ Listen to other episodes:
Tue, June 21, 2022
Meet the New Parking Lot Attendant, Gas Taxes, & VR Reality Check
Shoot us a Text. We are still enjoying the beautiful landscape of the hills of Ashville at the VADA Convention. Today we catch you up on some conversations that happened at the convention yesterday, a robot charging station, gas tax initiatives, and a reality check on getting VR closer to reality. Meet ZIGGY by EV Safe Charge First EV charging robot Serves ads on its digital display Has the ability to both reserve parking spots and charge throughout commercial and residential parking lots Hotels in CA have begun putting these stations in their parking lots and garages Take Away: Have we told you about being inventive with your space yet? Biden expected to make decision on federal gas tax holiday soon Would reduce prices by 18.4 cents per gallon Would require congressional approval Meeting resistance and positioned as political maneuvering as the tax would expire shortly after midterms Historically state tax holidays are passed on to consumers while federal action is not so clear as a portion of the relief typically raises the base and stays with producers Take away: Zuckerburg overviews VR tech that will more fully integrate the metaverse (and Meta) into regular life ‘...various headsets have been built to focus on specific elements of VR development, including retinal resolution for enhanced visual experiences, focal depth, which enables you to focus on different objects on screen, and high dynamic range for optimal color realism in VR spaces.’ Zuck introduced the Holocake II which claims to have done all of that. It is not clear if, when, or if ever it will be available to the public There are questions on whether or not Meta went too fast and early into the metaverse as it chases other current social platforms like TikTok in pursuit of stabilizing revenue Take away: Innovation always involves risk and being wrong…until you’re right. Paying attention a little to this tech now will put you lightyears ahead when more practical uses become a part of your consumers lives and your business Get
Mon, June 20, 2022
Presidential Resort, New Vehicle Prices Keep Going, Inventive Beer Halls
Shoot us a Text. As the Virginia Auto Dealers Association annual meeting kicks off in Asheville, NC, we’re talking about who Dealers are focusing on in their efforts to move forward. We also cover continually rising new car pricing, as well as how to get creative with the business you already have. New vehicle prices keep going up , buyers keep showing up Avg new car cost (55,821) is approaching the average income in the US COX Automotive Chief Economist, Jonathan Smoke reports that it has never been higher, but isn’t hearing Dealers talk about affordability issues at all Paul Walser former NADA Chair and to Mike Manley of Auto Nation say people are begging for new cars One of the few remaining relief levers is financing terms Smoke says the days of a sub 30k new car are gone Take Away: Managing the balance between new and used businesses to serve all of your customers is vital. Remember when new cars were reported as a loss on your P&L? Beer Halls get inventive with morning joe Owners Sarah and Clay Davies say they had always planned on using coffee as an ingredient in Biggerstaff’s beer and some marinades for smoked and braised meats. They also realized they could cater to customers who might come in at 8 a.m. in no mood for an IPA. “If you’re paying rent, why not have something in-house that makes money during the day, not just at night like most brewpubs?” Ms. Davies says. Owners are dealing with rising costs for the products they purchase and the workers they employ. As a result, many have chosen to go outside their original expertise hoping for more business. Owners are finding similar communities in beer and coffee drinking. Take Away: How can you find revenue sources within your current retail space that both curate and craft community? Get the Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ---- Rock w/ us on social: Insta: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.c
Fri, June 17, 2022
Auto Congress in Washington, Former Tesla Class Acts, Sonos for Days
Shoot us a Text. Happy Friday! Today we’re covering the Automotive News Congress in Washington yesterday, we review some of the many class act LinkedIn posts from former Tesla employees, and talk about why some Sonos customers just keep having speakers show up at their front doors. Automotive News Congress was in Washington yesterday and NADA President, Mike Stanton pushes for Dealers to have a seat at the table Speaking Thursday at the Automotive News Congress here with Automotive News Publisher KC Crain, Mike Stanton said: "We've talked a lot about dealer and factory relations, but we can't get it done alone. Our manufacturers are stepping up. The dealers are stepping up. We know that government is as well."We need to work with the government on all levels to make sure that we get this right for this to be successful for the consumers," he said. “Dealers are actually all-in on EVs and are essential to the success of the product” Views Dealers consolidation at high values a good sign since all the transitions are voluntary and those with deep pockets are investing heavily in the Franchised Dealer model Workers who were some of the 10% cut from Tesla, take to LinkedIn Last week, Tesla announced a 10% cut of its salaried workforce Many of those affected have taken to LinkedIn to say their goodbyes and share their stories. Many of them were full of gratitude “Tesla and I have parted ways, after 10 long years and many cherished experiences, it is over. Yes, I too was part of the 10% layoff and was blindsided by the event. I would like to thank the many that I’ve work with throughout these many years for all your hard work, dedication and more importantly their friendship. It has been an Experience! Best wishes to Tesla in their endeavor to change the world and I am proud to have been part of that. My wife and I are looking forward to our next adventure in life. Again, thank you all for your kind words -John Estelle, Maintenance Technician Customers who received as many as 30 Sonos boxes legally don’t have to return them “Sonos does not require the return of extra equipment and respects the decision of each impacted customer,” said spokesperson Madeline Krebs. “We have and will continue to be in full compliance with FTC requirements.” One particularly extreme example saw a customer receive around 30 shipments from Sonos containing roughly $15,000 worth of
Thu, June 16, 2022
Pumping Rates, Summer of Social Shorts, 3D Parts Printing, $920 Bugatti EV
Shoot us a Text. A mix of seriousness and fun on today’s show as we talk about the current and future rate increases from the Fed, Facebook putting on some summer shorts, printing parts in parts to increase service speed, and an amazing little scooter. The Fed raised rates by .75 bringing the benchmark rate to over 1.5 Largest increase since 1994 All 18 officials at decision meeting agree that rates may need to be raised to 3.0 or even as high as 3.375 before the end of the year Criticism growing of the trillions the Fed pumped into the market Chair Jerome Powell says chances of slowing the economy enough to avoid recession are shrinking Take away: If you haven’t fixed the roof yet, do it now. Efficiency will be the new game Facebook leaked memo reveals direction to make feed look more like Tiktok “The Meta executive in charge of Facebook, Tom Alison, spelled out the plan: rather than prioritize posts from accounts people follow, Facebook’s main feed will, like TikTok, start heavily recommending posts regardless of where they come from.” After years of separation, FB and Messenger will be merged back together to more closely resemble Tiktoks messaging feature In related news, YouTube Shorts are topping 1.5B views per month Take away: Give the people what they want…and what the platforms are pushing Is 3D parts printing in Fixed Ops departments on the horizon Kurtis Wilde, parts manager at Murray Honda in Chilliwack, British Columbia talked to Auto News about the application of 3D printing in house for repair work citing vehicles that have been down for months over parts delays Deployed properly, parts departments could produce the parts in minutes IP rights are a factor in the rollout but is solvable Also much opportunity for customization Take away: Scarcity breeds innovation. Innovation is trouble. We like trouble. Costco is selling a Bugatti EV for $920 with no destination fees Premium electric scooter with amazing specs 18.5 mph, 242lb capacity, 20-25 mile range Head light, brake light, turn signals Premium packa
Wed, June 15, 2022
EV Truck Race, Retail Spending Stop, Coinbase Layoffs, MLS on APPL
Shoot us a Text. This Wednesday we’re surveying the consumer landscape starting with the standings in the EV Truck race. We also talk about retail spending shifts, Coinbase’s about face with its staff, and finally, streaming for a sport that actually makes sense from a consumer’s standpoint. Cyber truck release is more than a year away still, behind most other EV truck launches Ford Lightning, EV Hummer, Rivian R1T already rolling EV Silverado Spring 2023 and GMC Sierra in the Fall EV Ram expected in 2024 Ford Super Duty in 2025 New leaked cybertruck photos suggest dual screen layout, adding instrument cluster, which has been blacked out until now, to the standard Tesla center screen Take Away: A head start doesn’t mean you’ve won the race, but it sure is an advantage Economists predict retail spending growth slows to near stop in May Economists surveyed by The Wall Street Journal expect that retail sales—a measure of spending at stores, online and in restaurants—rose a seasonally adjusted 0.1% in May from the previous month, easing from April’s 0.9% increase The Commerce Department is set to release May retail-sales data today at 8:30 a.m. ET Take Away: Affordability is key. The right inventory is where it starts. Coinbase lays off almost a fifth of its entire workforce (1100 employees) CEO Brian Armstrong accepted accountability for his decision to drastically overscale over the past 2 years and cited need to manage expenses and increase efficiency News was delivered via personal emails as company emails were shut off prior to notifying those affected in a very empathetic tone in the company memo Take Away: In times of volatility, those with the best fundamentals win. Apple will be the exclusive streaming partner for MLS until your kids are grown (10 yrs) MLS season ticket-holders will automatically have access to MLS’ streaming service on the Apple TV app Take Away: Consumers want it all in one place and don’t want to work to get it there Get the Daily Push Back email at https://w
Tue, June 14, 2022
Battle Royale in the Markets, EV Credit Limit Lift, Amazon Drones (Maybe)
Shoot us a Text. It’s Troublemaker Tuesday and we’ve got a full plate of trouble to talk about from the markets that just can’t seem to stay out of the headlines, to a joint letter from automakers to congress. We’re also talking about the potentially real arrival of Amazon drone delivery almost a decade later. Crypto Crash , Bear Markets, & Fed on Wednesday Crypto markets lost more than 300B as most coins dropped to 24 month lows BTC below 21k and ETH temporarily below 1,100 General market has stayed 20% below Jan session high for a sustained period indicating an official bear market Fed may accelerate rate increases to .75 from previously stated .50 amidst inflation acceleration “ Two consumer surveys have also shown households’ expectations of future inflation have increased in recent days. That data could alarm Fed officials because they believe such expectations can be self-fulfilling. Take away: Focusing on the right affordability solutions is more important than ever Major OEMs strongly urging congress to lift EV tax credit cap in joint letter GM, Ford, Stellantis, and Toyota highlighted the fact that they are investing over 170 billion in EVs and asked that the cap be lifted and a ‘sunset’ date be put in place Potential Republican wins in the midterms are raising concerns that conservative financial policies may eliminate the credits “ In April, U.S. Sen. Joe Manchin, a key Democrat from West Virginia, questioned the need to extend EV tax credits in the face of strong consumer demand and Chinese production of battery components. "There's a waiting list for EVs right now with the fuel price at $4. But they still want us to throw $5,000 or $7,000 or $12,000 credit to buy electric vehicles. It makes no sense to me whatsoever," Manchin said. "When we can't produce enough product for the people that want it and we're still going to pay them to take it -- it's absolutely ludicrous in my mind." Take away: Don’t count on the money, but count on the demand. \ Amazon finally getting drone delivery <a href='https://www.theverge.com/2022/6/13/23165727/amazon-drone-delivery-pilot-lock
Mon, June 13, 2022
Not-So-New Kid on the Block in the Wholesale Shakeup, ASOTU CON Pre-Sign
We’ve got a special episode today as we talk about the rapidly shifting wholesale market. We also have the honor of being the first to announce the big move of ASOTU Investor and long time dealer, Brian Kramer as he is named EVP Cars.com to be Head of used car acquisition platform AccuTrade. Hang on everyone, we’re comin’ in hot on a Monday. Wholesale auctions race to reinvent amongst rapid change in dealer and consumer behaviors “J.D. Power estimated that volume at traditional auctions was at 64,276 vehicles for the week of May 16, down from 111,876 vehicles for the same week in 2019.” The 2 largest, Manheim and Adessa are leaning into digital but not abandoning physical Manheim: "Our physical space is not just about the auctions…(it is)...for us, a key asset that we plan to have forever. We don't have any intentions of selling it."President of Manheim, Grace Huang They are reconfiguring for an expected influx of EVs Adessa: Now owned by Carvana, largely purchased for physical locations for reconditioning and processing Dealers have adapted to new restrictions and speed requirements as they have continually refined processes to acquire used inventory directly from consumers Brian Kramer is named EVP of Cars.com , Head of AccuTrade CARS acquired AccuTrade earlier this year Get the Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ---- Rock w/ us on social: Insta: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FB: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/
Mon, June 13, 2022
Not-So-New Kid on the Block in the Wholesale Shakeup, ASOTU CON Pre-Sign
Shoot us a Text. We’ve got a special episode today as we talk about the rapidly shifting wholesale market. We also have the honor of being the first to announce the big move of ASOTU Investor and long time dealer, Brian Kramer as he is named EVP Cars.com to be Head of used car acquisition platform AccuTrade. Hang on everyone, we’re comin’ in hot on a Monday. Wholesale auctions race to reinvent amongst rapid change in dealer and consumer behaviors “J.D. Power estimated that volume at traditional auctions was at 64,276 vehicles for the week of May 16, down from 111,876 vehicles for the same week in 2019.” The 2 largest, Manheim and Adessa are leaning into digital but not abandoning physical Manheim: "Our physical space is not just about the auctions…(it is)...for us, a key asset that we plan to have forever. We don't have any intentions of selling it."President of Manheim, Grace Huang They are reconfiguring for an expected influx of EVs Adessa: Now owned by Carvana, largely purchased for physical locations for reconditioning and processing Dealers have adapted to new restrictions and speed requirements as they have continually refined processes to acquire used inventory directly from consumers Brian Kramer is named EVP of Cars.com , Head of AccuTrade CARS acquired AccuTrade earlier this year Get the Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ---- Rock w/ us on social: Insta: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FB: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ </p
Sat, June 11, 2022
Saturday Trouble w/ Guest Michael Cirillo
Shoot us a Text. Nobody can tell a story like Michael Cirillo host of the Dealer Playbook Podcast. It’s our honor to have him host the show today and tell a story that will make any parent laugh. Have a great sales day and remember to sign up for our daily email here . Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, June 10, 2022
Lot Attendants, OEMs and Startups, Remembering Saturn, EV Charging Standards
Shoot us a Text. Friday is shaping up to be a full day as we talk about yesterday’s trip, and specifically, two young lot attendants. We also talk about Porsche’s new partnership with new startup incubator, Up.Labs, Saturn’s ‘crazy’ idea from 20 years ago, and EV standards being shaped by the US. Porsche partners with UPlabs to fund several Auto related startups announced at UpSummit in Bentonville, Ark Partnership will help seed up to 6 startups in the mobility sector from digital retail to supply chain transparency Porsche will have the option to acquire the startups after three years and will have a minority stake in the companies UpLabs launched by UpPartners, an investment firm focused on transportation, specifically, “technologies that help move people and goods cleaner, faster, safer, and at lower-cost - on the ground, in the air, on the sea, and in space” The UpSummit is the company’s an invitation-only annual gathering in Bentonville hosted by partnersTom and Steuart Walton, and Ross Perot Jr. Take Away: Don’t let the OEMs have all the fun, Dealers can do (and are doing) similar things. (Vincue, Webbuy, Streamline, ASOTU etc) Throwback to GM brand Saturn’s uniquely crazy idea over 20 years ago (Baltimore Sun) Submitted by reader/troublemaker Eric Trytko via LinkedIn DM ”Here is one you can have some fun with. This article is from 1991 when Saturn began selling cars and their philosophy. It sounds like SPOC and Single Pricing! Hey what's really old is new again!” “When Ed Sprigman lost his job as a pilot with Eastern Airlines, he decided to give automobile sales a try. But his brief experience at one Baltimore dealership had him rethinking his career choice.” There is so much in this article that will make your eyebrows raise, you have to read it Take Away: It’s not about acquiring more knowledge, it’s about executing on the knowledge you already have. THANKS Eric! US Government to set standards for charging project “The rules would require government-funded EV charging stations use DC Fast Chargers and have at least four ports capable of simultaneously charging four EVs and each must be at or above 150 kW. It would also bar charging stations from requiring a memberships to use them.”
Thu, June 09, 2022
Wheels Up to Philly, EU Going EV, Balancing Budgets, & Brad Pitt Racing
Shoot us a Text. We’re in the City of Brotherly Love this Thursday and are talking about ASOTU CON plans, the EU going all in on EV by 2035, the financial sense of an electric lifestyle, and Brad Pitt driving Formula 1 EU lawmakers vote to ban sales of gasoline cars by 2035 “The auto industry plays a vital role in Europe's economy, accounting for 7% of gross domestic product and supporting 14.6 million jobs in the region.” The proposal to allow only zero-emissions new cars to be sold in the 27-country European Union after 2035 will mean that cars with gasoline or diesel engines, including hybrids, will essentially mandate sales of all-electric models, which have no emissions. An electric car finally makes financial sense “For instance, the Environmental Protection Agency estimates it will cost around $2,900 a year for the average American to fuel a 2022 BMW 430i sedan. (The base model 4-series sedan gets 28 miles per gallon in combined city and highway driving, and it uses Premium fuel, which the EPA calculates at a national average of about $5.39 a gallon.) The estimated cost to fuel a 2022 BMW i4 eDrive40, which is basically the same car but powered entirely by electricity, is about $600 for a year. That's one fifth the cost.” “But, of course, you don't generally get a huge discount on fuel costs for nothing. The i4 costs about $10,000 more than the base model BMW 4-series with a gas engine, but the electric BMW i4 is also eligible for a $7,500 federal tax credit, reducing the ultimate price difference to just $2,500.” Take Away: Educating your team on the cost difference between ICE and EV will help serve the questions all consumers are asking. Brad Pitt to star in Formula 1 movie on Apple The 58-year-old Pitt will play an F1 driver who comes out of retirement to race alongside a rookie driver and other top drivers in the sport. It won’t be Pitt’s first foray into the world of sports movies: He was a best-actor nominee for his role as Athletics general manager Billy Beane in the 2011 baseball drama “Moneyball.” Get the Daily Push Back email at <a href='https://www.a
Wed, June 08, 2022
BoA Partnership, Wholesale Prices Up, Tacos From Above, Stranded Tesla Rescue Squad
Shoot us a Text. Welcome to Wednesday as we’re talking about Lucids partnership with Bank of America to offer seamless financing, Manheim reporting a rise in wholesale prices, Taco bell’s new concept store that could set the standard for drive thru, and Ford’s surprise Lightning accessory. Pre-register to be the first to know ASOTU CON details here Bank of America partners with Lucid Motors to create seamless financing as Lucid Financial Services Allows checkout process to be fully digital with various loan and (24/36/48 mo term)lease options “ Lucid Air customers have requested flexible financing options, including lease and loan purchase, with many of them preferring a 100% digital experience. Lucid Financial Services is all about delivering a best-in-class finance journey from online application to e-signing with full transparency of terms and flexible purchasing options. Our goal is to transform vehicle financing by introducing new processes that enable our customers to experience the luxury and technology of Lucid electric vehicles.” Starting price for the Lucid Air $87,400 - 169,400 OR 3.28 - 6.36 Chevy Bolts Take away: Indicators are indicators. Give the people what they want. May Wholesale Used Car Prices tick up from April’s decline according to Manheim Up .7 from April to May, up 9.7 YoY ‘The pace of retail used-vehicle sales remained relatively stable in May. Used-retail sales fell 1 percent from April, according to Cox Automotive, which made that estimate by leveraging a same-store set of dealerships selected from Dealertrack to represent the U.S.’ Slower rollout of tax returns is a factor with only 74% of returns being released as of May 20th as opposed to 100% of the same period last year Take away: There is no clear strategy and there are many ways to win. Join us in the “All Things Used Cars” clubhouse room on Friday at 9am EST to hear how some of the best operators are getting it done Taco Bell opens its “Defy” restaurant in Brooklyn Park, MN with a digital-first mindset 2 story concept with the kitchen sitting overtop several drive thru lanes with mobile and third party orders prioritized. There is still a single traditional drive thru window The goal is a “2 minute or less” experience from order to pickup. Food is lowered via a mini-elevator in a tube Take away: Remember tha
Tue, June 07, 2022
Apple Bites Into Auto, Ford’s Summer Camp Initiative, Summer Gas Prices
Shoot us a Text. There was lots of excitement for Apple fans yesterday around the WWDC22 event and broader implications for the future of flexibility for in-vehicle UIs. We’re giving you a summary of both. We also cover Ford’s contribution to a middle school summer camp in the Tampa Bay area, and also talk about summer gas prices and consumer driving habits. Apple WWDC22 Tap to Unlock, start, share access. BMW starts next month New UI across multiple screens for apple carplay (ads?) Messaging and Email Say goodbye to that awkward time you called your coworker the pet name you gave your special someone Also announced several new iOS customization options, collaboration tools, more seamless experiences between devices, a new MacBook Air, and 13’ MacBook Pro featuring the new M2 chip. Read a full summary here. Take away: Give the people the control they want while making it feel like no work at all. Ford partners with Tampa Bay Area St. Petersburg Pinellas Technical College for Middle School summer camp program Petersburg Pinellas Technical College, who typically offers programs for High Schoolers only, launched a summer camp for middle schoolers to get students interested in high-demand trade industries like auto tech, especially EVs Ford supplied plastic motors and other parts so students could build mini vehicles in order to ‘see how it all worked’ Keith Whiteley, Lead Automotive Instructor says getting students interested early is a great way to give them a head start on programs designed for their Jr and Sr years Take away: The next generation is tech-naitive. Focusing their interest on Automotive early is great opportunity for them and fills an essential need for society 10 States with average gas prices over $5 “the EIA predicts that for consumers, the average U.S. household will have to spend around $450 more for gas this year than they did in 2021, on an inflation-adjusted basis.” Highest average is in California with some stations charging well over $7/ gallon AAA says consumer driving habits haven’t been affected much but this could change soon Take away: Consumer pain points make great promotion or community service ideas Get the Daily Push Back email at https://www.
Mon, June 06, 2022
Video Games and Volvo, Tough Questions for Ford CEO Jim Farley w/ Special Guest Brian Pasch
Shoot us a Text. We’re making some big trouble on a Monday morning as we talk through Volvo’s partnership with the creator of the popular game Fortnite, Epic Games. We also have special guest, Brain Pasch on the show to talk about his direct approach to questioning Ford CEO, Jim Farley’s direct approach to selling EVs. Fortnite creator, Epic Games, partners with Volvo to unleash in car experience (Side note)If you have kids that play the game, you know that Chap 3 Season 3 went down over the weekend in a giant mech battle In a statement Thomas Stovicek, Volvo head of user experience, said that he hopes the partnership will: provide "richer layers of information" to the driver without the "additional distraction or stress" “About bringing astonishing game-quality graphics into our cars” "provide entirely new functions and services" such as improved connectivity with other vehicles and the outside environment” Will run on the Volvo ‘HMI’ (Human machine interface) Take away: This is a a great example of importing the best thinking and tools from outside the industry An Open Letter to Jim Farley w/ Guest Brian Pasch On Friday, June 3rd, Industry advocate and fellow troublemaker Brian Pasch released an open letter to Ford CEO, Jim Farley challenging several statements made in a recent talk and asking 10 follow up questions on behalf of franchised retail Auto Dealers Is Ford changing their building standards and facility requirements today to minimize the investments dealers need to make for new facilities or facility upgrades? Who is going to work out these deals and trade values on a national Ford EV sales portal when no technology platform can do it today? In your consumer-direct model, where Ford sets an online trade-in value, who is purchasing the vehicle and where does it go? Will Ford be selling certified pre-owned EV models direct to consumers on your national portal? What is your risk tolerance when other OEMs have local dealer lots filled with ready-to-buy competing models and you start to lose market share? What happens when Ford models (and likely incentives) do not sell through national inventory that you pre-built or orders fail to meet your production goals? Will local dealers have the ability to offer their own financing and F&I products, or will Ford control those offerings? Are you willing to share what the PVR in your model looks like compared to what dealers are realizing today? Could the complexity of trims and optional packages in the F
Fri, June 03, 2022
Auto Intel, Dropped EV Base Price, Baller Billionaires
Shoot us a Text. This Friday is a blend of volatility and stability as we talk about the latest auto Intel report, EV pricing taking a big step forward by taking a big step backward, and which billionaires make the most impact. June Automotive Ventures Auto Intel Report paints volatile picture for startups but stability for Dealerships For startups, plan to pivot making the new goal “Default Alive” For Dealers, pent up demand of over 2.9M fleet units and 1.9M retail units paints a picture of stability A big question of whether or not OEMs will maintain production discipline remains Continually accelerated rate of change projected in Dealer / OEM model Take Away: First, isn’t it great to be in Retail Automotive? Second, don’t say Steve Greenfield didn’t warn you when it happens. Chevy Bolt prices cut to below 30k for first time ever ‘2023 Bolt EUV will start at $28,195 for the LT trim, compared with $34,495, while the Premier trim will start at $32,695, down from $38,995. All prices include shipping.’ In a Wednesday statement, Chevy said "This change reflects our ongoing desire to make sure Bolt EV/EUV are competitive in the marketplace. As we've said, affordability has always been a priority for these vehicles," Take Away: Just because the markets seem to be doing one thing, doesn’t mean you can’t focus on the issue at hand, in this case affordability, and find a way to make it happen LeBron hits $1B lifetime income according to Forbes With sale of his media company “The SpringHill Company, James’ media and entertainment company, announced today that it is selling a significant minority stake to a group of investors that includes RedBird Capital Partners, Fenway Sports Group, Nike and Epic Games at a valuation of about $725 million” Take Away: In retail automotive, you probably know more billionaires than you think. There is probably a much different ego scenario, and substantively more community impact. Just saying. Get the Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read our most recent email at: <a href='https://www.aso
Thu, June 02, 2022
Ford’s Farley Predicts Consolidation, Sandberg Says ‘Goodbye’, Used Cars Get Softer
Shoot us a Text. The key word for this Thursday’s show is ‘transition’. From Ford CEO, Jim Farley’s recent talk, to a massive leadership move for Meta, to Used Car indicators; we are moving from one thing to the next. To us, this smells a lot like opportunity. Ford CEO Jim Farley predicts substantial consolidation in just about ever area “Speaking at the Bernstein Strategic Decisions Conference, Farley predicted that dealership groups, suppliers, electric vehicle startups and traditional automakers could merge, fall out of the market or form new joint ventures as the transition to EVs changes the industry.” Says smaller automakers won’t be able to keep afloat with the amount of money they are investing. The market isn’t big enough Predicts more mergers than partnerships, says partnerships are very hard. Ford has current joint venture w/ VW he didn’t mention. Also they have pulled out of Rivian partnership as well as a potential one w Mahindra Take away: As dealers and industry partners, let’s show ‘em what real collaboration looks like. 14 year COO of Meta, Sheryl Sandberg stepping down from COO role “I really feel like the next generation of leaders are ready,” Ms Sandberg said in an interview. “It’s been a long and great partnership with Mark, I really believe in the company, and I’m staying on the board. Sandberg will remain on the board Joining FB when Zuck was only 23 years old, Sandberg is credited with building out the company’s ad platform…remember 2008? At 52 years old, she says she will be focusing on her foundation and women’s issues and is not sure yet what else Sandberg received 35.1M in 2021 and owns and estimated 1.6 million FB shares and has a net worth of about $277 million Latest TrueCar report indicates softening demand and lower prices for Used Cars "This month we're continuing to see a struggle for supply among the industry however we're also now starting to see signs of demand adjusting. Higher interest rates combined with higher fuel prices present a headwind to demand cooling off, which may explain why average used list prices are decreasing, down 1.6% in May versus April 2022," said Nick Woolard, Lead Industry Analyst at TrueCar. More vehicles being marked down over the same period last year. Over half of used cars received a markdowns Average transaction price is projected to be up 14% from a year ago and comparable to April 2022 Used
Wed, June 01, 2022
Reimagining the Showroom, EV Charger Dollars, Global Labor Competition
Shoot us a Text. We’re coming off of a day in the dirt as we spend the day in and out of a dozen showrooms. So today, we’re talking about showroom flow, EV charging stations lagging behind expected demand, and the international labor shortage coming to our shores. Honda takes a step to redefine & redesign the retail showroom “So Honda plans to redesign dealerships into modern retail spaces that are basically terminals along the way to EV ownership, not destinations. The smaller dealerships Honda envisions would be where buyers pick up their new EV after completing the purchase online, or where EV owners go for infrequent service.” More seamless online to offline shopping journey. Take Away: As you head toward the next round of remodels or builds for your franchises, imagine how the customer journey could be redesigned with a retail mindset. EV Charging stations are going to lag behind vehicle sales …for a while Biden admin preparing to hand out 7.5B to states to continue to build infrastructure for EV charging but states are having trouble spending the money they’ve already received Over four years ago, states received over $420M as a part of a 2.8B VW scandal settlement and to date, less than half has been spent Texas was one of the first to dole out existing funds and after their application process officially opened, 85% of the funds were awarded to Shell Corporation The Biden administration wants 500,000 public chargers by 2030; McKinsey & Co. estimates that as many as 1.2 million are needed. The U.S. has fewer than 5,000 locations with 10,000 individual fast chargers that anyone can use, according to government data. Take Away: The UK Has a fancy fix for their labor shortages 20 US Schools have been prioritized to give Visas to graduates No job offer required and 2-3 year Visas Graduates also able to bring their families Goal is to attract highly qualified candidates for tech, startup, and finance roles Take Away: Finding inventive ways to attract qualified candidates is the job of every business owner. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/
Tue, May 31, 2022
Current Labor, Chip, and Battery Shortages Explained & Delorean not Stopping Short
Shoot us a Text. Summer is here for many, but shortages are persisting. Today we talk through some of the reasoning. We also talk about the legendary Delorean that is about to spread its EV (gull)wings. Summer labor shortages are thwarting those post-pandemic plans In Phoenix, less than half of the public pools are opening because the city can’t hire enough lifeguards, despite offering a $2,500 incentive Double the number of open jobs than the number of unemployed Restaurants and other hospitality suffering disproportionately as workers leaave those industries for others Many small businesses facing both reducing hours and lower quality of service Current administration says they will make 35k additional seasonal visas available to help Sansdemic implications (coined by EMSI) meaning ‘not enough people’ Generational shortfall of reduced birthrates More young males living at home Gig economy Pandemic acceleration of workers leaving the workforce Chip Shortages & EV Battery Supply concerns still in play Chip shortages leave new car manufacturers 800k short YTD North AmericaYTD: 559,000 Projected: 781,000 Stellantis fearing EV production cannot keep up with demand Nissan halts Ariya orders from dealers, fearing customer waits may be too long The Electric Delorean is for real as the Alpha E5 EV 0-60 in 3.99 0-88 in 4.35 Not the same original company, but the Texas based company who manufactures replacement parts for the original purchased the rights “DeLorean partnered with Italdesign, the same Volkswagen-owned design team that helped develop the look of the 1981 DMC-12” Full reveal coming in Pebble Beach on Aug 21 Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at:
Mon, May 30, 2022
Giving Proper Credit, Dealer Principles Grilling Hot Dogs, Snapping Sales Selfies
Shoot us a Text. This Memorial Day we're giving credit where credit is due. And that is to those brave men and women who gave so much so that we could enjoy the freedoms of Memorial Day. Also, our hearts are with their loved ones who continue to live in the wake of that sacrifice. We also are shouting out all of our people selling cars today! Take some selfies, post them and tag us on social! We'll show you some love. See you tomorrow for our regularly scheduled troublemaking :) Get Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ---- Rock w/ us on social: Insta: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FB: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, May 27, 2022
OEM Programs, ASOTU CON is Coming, & Carvana Back in Illinois
Shoot us a Text. Memorial Day weekend has unofficially begun. We are joined this morning by Matt Lasher with the West Herr Group to talk a bit about marketing and OEM programs. Time to gear up for a huge close and the kickoff to the summer selling season. Get out your grillware and fire up the burners! Uvale victims relief The energy around ASOTU CON is building We have been having conversations with partners across the country Yesterday we finalized the logo design that you can see at asotucon.com Take Away: Block of Sept 11-13th… Growing Sentiment in top level marketers that OEM programs are now stifling innovation Programs looking to own more of the customer journey Primary areas of websites, digital retailing, and digital paid advertising Programs meant to unify Struggles happen as group consolidation begs uniformity in process. Take Away: Consistently work with your OEM & Shift reps to show them your capacity for decision making and excellence as proof that mandated programs may slow you and your partners down. Carvana allowed to sell again in Illinois “Carvana won't be allowed to issue temporary registration permits or license plates, according to an email from Henry Haupt, spokesman for the Illinois Secretary of State's office.” The company is under a strict set of guidelines, including issuing a $250k bond to cover customer’s fees and fines surrounding registration woes. Take Away: Though Carvana is in the news, many dealerships struggle with registration timing right now. Take time to perfect your process and guard a high level of communication with your customers. Get Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ---- Rock w/ us on social: Insta: https://www.instag
Thu, May 26, 2022
DMSC Wraps, NADA and State Associations grill VW, 100 Year Battery
Shoot us a Text. It’s Thursday, folks! As we round the corner this week we’re talking about takeaways from Brian Pasch’s DMSC conference in Napa, the strength of Dealer associations and NADA showing up, and the real possibility of a battery that lasts 100 years. DMSC is a wrap and we’ve been hearing nothing but great things Adaptability, courage, being proactive, being human Read the summary on asotu.com VW Dealers and NADA turn up the heat regarding VW’s announcement of Scout May 11th, VW announced the Scout brand would be a separate, independent company and created a whirlwind In a letter dated Tuesday to Scott Keogh, CEO of VW Group of America, NADA CEO Mike Stanton addressed the lack of information from the Scout announcement and urged Keogh to "quickly and clearly communicate Scout's distribution plan to your dealers who have made significant investments to support VW's business model and transformation to electrification. Various state associations also penned letters of varying tones VW has yet to respond to any of the communications Take Away: When you don’t fully communicate intentions, the ‘lizard brain’ kicks into high gear A new paper by Tesla and Jeff Dahn's Dalhousie University a 100 year battery is introduced In a paper just absolutely thick with scientist jazz, Tesla and Jeff Dahn's Dalhousie University battery lab have announced a battery design that could last 100 years. An electrolyte with LiFSI lithium salts provides lower capacity fade and higher energy density than Lithium Iron Phosphate (LFP) batteries. The catch? The only mentioned condition required by the test is temperature control at 77 degrees Fahrenheit. Take Away: When you are committed to innovation, the apparent end is rarely the actual end of the conversation. Get Daily Push Back email at https://www.asotu.com/ <
Wed, May 25, 2022
The Drone Packages are Dropping, Hacking GM, Third Party Transactions
Shoot us a Text. Today we cover the breakout horse in the drone package delivery race, talk about the simple ‘why’ behind the recently discovered GM consumer hack, and discuss some 3rd party online transaction options. We’ll also try our best to make fun of ourselves. Walmart is expanding it’s 3.99 drone delivery service to 34 cities Represents over 4 million eligible households Delivered with a claw and repel line (less than 10 lbs between 8a-8p) Has completed hundreds of deliveries within 1.5 miles of a store All drones are piloted by humans while Amazon is working on Autonomous Take Away: There is always more than one way to innovate the same result Hackers get into nearly 5000 GM customer accounts according to California AG Occurred between April 11-15 In some cases hackers redeemed points for gift cards Passwords were not stolen from GM but from other sites where the same password was used Take Away: Here are some tips to secure your passwords. Yes we mean YOU. Third party sites continue their evolution toward transactional marketplaces Latest examples are CarGurus Digital Deal and TrueCar + Intended to compete with online retail experiences of Carvana / Rivian etc Developed in part to recover revenue drop due to drop in inventory ad dollars Take Away: Dealers, you do not have to wait for someone else to innovate your online retail offerings. Our suggestion, use what is useful, but don’t fully outsource your online retail experience. Get Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read our most recent email at: https://www.asotu.com/media/push-back-email Share your positive dealer stories: https://www.asotu.com/positivity ---- Rock w/us on social: Insta: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FB: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.co
Tue, May 24, 2022
Mercedes Cuts Dealers in Europe, Starbucks Leaves Russia, Oh ‘SNAP’s Earnings
Shoot us a Text. It’s a brand-spanking-new Tuesday to make some trouble as we take a look across Auto Retail, marketing, and all retail this morning. From big moves in Europe that give us warning, to the consumer mindset regarding social media ad platforms, we’re leaning in with Auto Dealers so that we can all lean-into our teams and communities today. Mercedes cutting Dealerships and transitioning more into and ‘agency’ model in Europe Will cut 10% worldwide and 20% in Germany ISO fewer large showrooms in ‘mature’ markets’ Agency model major changes means fixed pricing and OEM owned inventory OEM executes the financial transaction Take Away: Although legislation and lawmaking are significantly different in the US, studying this situation is beneficial for US Dealers as we navigate and shape the developing ‘normal’ Starbucks is permanently pulling out of Russia Opened the first of its 130 Russian stores in 2007 Will continue to pay its 2000 employees (partners) for six months Other companies considering divesting or pulling out altogether include Marriott, Burger King, and Yum Brands (Pizza Hut, Taco Bell, Pizza Hut) Take Away: Business changes and decisions need to be made, but you can always choose to take care of your people SNAP issues revenue warning noting a faster than expected market deterioration Since late April, "the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range," Just last month forecasted 20-25% revenue growth and says they are still growing YoY, but did not disclose specifics "Like many companies, we continue to face rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact of the war in Ukraine, and more," Take Away: Short term marketers only deploy direct response. Time and data shows that those who keep a steady diet of brand-first marketing in the mix gain market share. This includes Auto! New font, who dis’? Instagram executes a brand refresh New gradient to express vibrancy New font ‘Instagram Sans’ is a mix of pixel perfect and hand drawn to communicate Insta’s heritage </li
Mon, May 23, 2022
VeeCon, Web3, Mercedes Activates Charity, Amazon Packages from Malls
Shoot us a Text. This Monday, we’re walking with our heads up, and eyes scanning the horizon as we summarize Paul’s recent trip to the Web3 conference, VeeCon. We also talk about Mercedes getting creative with its charitable giving (and why we think you should too). Finally, we look at Amazon’s newest last-mile delivery testing. VeeCon wrap up: Business responds to culture. Art and Entertainment is where Culture is typically first “defined” Concept of ‘custody’ and the responsibility that comes with it (decentralization and token-based economics) Ian Rogers, Chief Experience Officer at Ledger Formerly CDO with LVMH , most known for his 20 years bringing digital music mainstream…Beats then Apple Music launch) Education is critical for innovation and adoption (Web 1, 2, 3) Every industry will be affected (even the DMV) Similar adoption curve as all tech, esp Web 2 It’s all about community. Web2 was about having an audience, Web3 is about cultivating community Take Away: Web3 isn’t going to solve Retail Auto’s problems today, but remember when you thought it was ridiculous to put a vehicle listing online instead of the paper? Mercedes auctions rare care for new charity fund German automaker Mercedes-Benz said Thursday that it has auctioned an extremely rare car from its company collection for a roaring 135 million euros ($143 million). 300 SLR Uhlenhaut Coupé : This icon of automotive history is an absolute rarity – one of just two prototypes built at the time. Following in the innovative footsteps of the car’s creator, Mercedes hopes the fund will support young people being able to learn about and research environmental science and decarbonization. Take Away: Think of unique ways you can use your people and material resources to equip learning & charitable contributions within your community. Get outside the box of simply a dollar and activate your resources. Amazon tests shopping malls as a base to deliver packages from Utilizing its FLEX drivers (think Uber/ Lyft style), drivers will pick up packages to be delivered directly to customers within a 10 mile radius from individual stores in the mall instead of local Amazon delivery centers Pays Mom and Pop shops to be a sort of post office to stage deliveries in an effort to cut down on delivery times Take Away: Revitalization
Fri, May 20, 2022
Kramer in a Driverless Car, Jim Farley Pod, Exchanges approach bear market
Shoot us a Text. With Paul on the ground at VeeCon, we hear from him and invite Brian Kramer to the show. We are talking cars with ghosts (seemingly), a new podcast to listen to, and how markets are impacting dealers. Brian Kramer shared a video in a driverless car Technology by Qubis Kramer stated use cases like Delivering rental cars Chase cars for vehicle drop off Retrieving vehicles from storage lots Take Away: You may not have an army of driverless cars in your area sometime soon, but preparing for potential business opportunities is a best practice. Jim Farley , Ford CEO, to host a Spotify podcast Drive with Jim Farley Guests include: Tom Brady, Dax Shepard, Harley Davidson CEO Jochen Zeitz, YouTuber Emelia Hartford, The Duke of Richmond and Patrice Banks. “Spotify is footing the bill for putting the show together, and it's sponsored by customer-relationship software giant Salesforce.” “Auto executives are stepping further into the spotlight to build and burnish their personal brand, and ideally boost their company's share price.” Take Away: Never underestimate the power of personal brand on a company brand. Think about your dealership and how the brand of those in the store can impact profitability. Stock exchanges on pace for bear market Glenview Trust CIO Bill Stone wrote. “For the first time in the post-Covid period, retailers have been stuck with some excess inventories. Costs due to inflation are also taking their toll on their earnings.” “The S&P 500 fell 0.6% on Thursday and is now about 19% below a record closing high set in early January. This would be the first bear market — defined by many on Wall Street as a 20% drop from a high — since the pandemic decline of March 2020.” Futures may have gotten a boost after China overnight cut a key benchmark rate for mortgages as Covid shutdowns hit the economy. Take Away: With consumer sentiment waning, interest rates rising, and markets continuing to turn down, a
Thu, May 19, 2022
Musk Is Mad, Subprime Stumbles, Workplaces Come Alive
Shoot us a Text. Today’s flyover is a target-rich environment with a wide swath of news. In order to keep it under 12 hours, we’re talking about Tesla getting kicked from the ESG index (we’ll explain), why signals are not looking good for subprime borrowers, and the new priorities in return-to-work as evidenced by Adidas. Tesla gets kicked out of the ESG index and isn’t happy about it ESG = Environmental, social, and governance and has been a growingly popular investment for those who want to (or appear to want to) keep ESG issues at the forefront of the investment strategy “Low carbon emissions plan, labor complaints, and compliance investigations” were cited as reasons for being left off the list while Oil company Exxon Mobile was placed in the top 10, as well as Amazon despite its substantial labor disputes, and JP Morgan which is the largest lender to the fossil fuel industry. Meanwhile, Musk stated “Tesla has done more for the environment than any company ever.” It’s all about the payments, Subprime borrowers are falling behind, yet most Americans are still above water subprime credit cards and personal loans over 60 days late rising faster than normal , according to credit-reporting firm Equifax Inc Delinquencies on subprime car loans and leases hit an all-time high in February. Numbers go back to 2007 Pandemic stimulus is running dry in households affected most by inflation Still overall high credit environment % of subprime loans is trending back up 15.7% Q1 2022 - 15.4% 2021 - 18.9% 2020 According to TransUnion, the avg balance of new auto loans reached $28,415 in the first quarter, up 15.2%, or $3,751, vs. a year ago. Including both new and used combined, the average monthly auto payment was $556, up 13% from last year Payments over the minimum on car loans was higher than normal in Q1 Inspiring spaces are a part of return to work at Adidas new HQ Designed by San Francisco-based Studio O+A with LEVER Architecture, the space is graphics heavy and focuses on flexible reconfiguration. Basically bleachers stay put, everything else moves Lines and textures allude to the brand in the a
Wed, May 18, 2022
Interest Hikes, Carvana Suspension, Cadillac Kids
Shoot us a Text. Working through a Wednesday of movement and stalling as we talk about the Fed’s position and posture toward inflation. We also talk about Carvana’s license suspension in Illinois, and Cadillac’s move into the younger demographic. Fed Chair Powell says the Fed will not hesitate to keep raising rates Fed Chair Jerome Powell said he will back interest rate increases until prices start falling back toward a healthy level. Powell said he will back interest rate increases until prices start falling back toward a healthy level. “If that involves moving past broadly understood levels of neutral we won’t hesitate to do that,” the central bank leader told The Wall Street Journal in a live streamed interview. “You’d still have a strong labor market if unemployment were to move up a few ticks. I would say there are a number of plausible paths to have a soft as I said softish landing. Our job isn’t to handicap the odds, it’s to try to achieve that,” he said. Carvana’s Dealer license gets suspended in Illinois “Illinois Secretary of State Police temporarily blocked Carvana's dealer license on May 10 because the company failed to properly transfer titles for vehicles it sold and misused issuing out-of-state temporary registration permits, said Henry Haupt, an Illinois Secretary of State spokesman.” There is no information on when the license may be reinstated "Carvana has compliantly operated as a licensed dealer and good corporate citizen in the State of Illinois for several years, and we strongly disagree with the State’s characterization of both the facts and the law leading to this action," a Carvana spokesperson said in a statement. "We are actively working with the State to resolve this issue, and they have agreed that we will continue delivering already purchased vehicles. We look forward to resolving this issue with minimal disruption to customers." Last year the company received a 180 day suspension in North Carolina and nearly averted a similar situation in Florida The new Cadillac Lyric EV snaggs a younger market share 70% are new to the brand <l
Tue, May 17, 2022
Hacked Teslas, Home Depot Sees Fewer Shoppers, & Dealer Consolidation
Shoot us a Text. Tuesday’s are for Troublemakers as we talk about the revealing of a new Tesla hack with broader implications, Home Depot is seeing fewer customers but higher revenue, and the great Dealer consolidation marches on. Research firm Escalent finds consumers prefer dealerships The majority of respondents prefer to rely on dealerships for financing (60%), delivery (85%) and repairs and services (79%). Almost half of the respondents (45%) prefer to have dealership staff educate them about various models. “What we found, pretty overwhelmingly, is that consumers prefer to buy their vehicles from dealerships,” K.C. Boyce, vice president of Escalent, tells Wards. “They want to do test drives, to touch and feel and see vehicles. When we look at the macro picture, the idea that (car buying) is going to move entirely online is fundamentally flawed.” Hacker reveals a method to gain entry and start certain Teslas “A hack effective on the Tesla Model 3 and Y cars would allow a thief to unlock a vehicle, start it and speed away, according to Sultan Qasim Khan, principal security consultant at the Manchester, UK-based security firm NCC Group” Hack was made known to Tesla, no response at this time Similar hacks exist for any smart lock using BLE (Bluetooth Low Energy) tech to make the device think the owner is in proximity Hardware costs about $50 Home Depot reports fewer transactions but higher transaction amounts number of transactions declined 8.2% average amount spent per transaction rose 11.4% “The retailer was a major beneficiary during much of the pandemic. At one point during the last two years, Home Depot posted four straight quarters of comparable sales growth above 20% as the public-health crisis’s social disruptions left people spending more time in their houses.” Dealership consolidation keeps rolling in 2022 The trend decision seems to be ‘get bigger or sell out’ “Dealership consolidator Gregg Ciocca, who wants to double his store count to 50 within five years, says acquisition opportunities are "coming fast and furious" in today's robust buy-sell market. Ciocca, CEO of Ciocca Dealerships in Quakerto
Mon, May 16, 2022
VW’s Non-Dealer Brand, Peloton Backpedals, CarGurus’ ‘Digital Deal’, McDonald’s Quits Russia
Shoot us a Text. There is a lot to talk about this Monday as we survey the retail landscape across fast food, fitness, Auto OEM’s, and publicly traded auto retail including Vroom’s rightsizing and CarGurus new end to end offering for Dealers. McDonald’s is selling all of its stores in Russia All stores have been closed since March and it has continued to pay its 60,000 employees Will cost the company 1.4-1.6 Billion It has been doing business there for over 30 years VW Dealers didn’t like being surprised by the announcement of the new Scout We talked about it last Friday and seemed to surprise a VW rep in the elevator “On Friday, May 13, VW of America sales and marketing head Andrew Savvas sent a letter to the brand's 650 dealers, confirming that Scout will be an independent brand within VW Group and that they will have no claim on its products.” Peloton keeps diving while in-person Planet Fitness has a big upswing $2.27 loss per share vs. the $0.83 expected Net losses widened to $757.1 million Revenue lower than expected $964.3 million vs. $972.9 million expected. Cash and equivalents for the quarter were down 22% year-over-year. HOWEVER, less than 1% churn Planet Fitness: 2022 Q1, almost all of its financial metrics increased YoY Total revenue increased by 66.9% to $186.7 million. same-store sales increased 15.9%. Net income increased to $16.5 million from $5.6 million in the previous period. 37 new Planet Fitness stores opened Q1. Vroom lays off 14% of its workforce (270), reprioritizes profitability over growth and appoints a new CEO Named Thomas Shortt as CEO, former WalMart exec CarGurus launches online retail platform 'Digital Deal' to provide end to end solution for Dealers $249/mo per rooftop Setup similar to dealer Digital Retailing tools 50-70% of deposits taken on the tool complete purchase Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email
Sat, May 14, 2022
Saturday Sales w/ Erikka Tiffany Wells
Shoot us a Text. How to have a stronger Saturday in just 74 seconds. STEP 1: Listen to Erikka on todays show. STEP: Do what she says. That is all. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, May 13, 2022
Crypto Bathing, Wire Harness Resilience, ESPN - DTC Plans
Shoot us a Text. It’s a retail consumer facing kind of day as we talk about some major shifts of recent norms. We dive into crypto’s current fallout as well as Disney’s ad-supported strategy for a completely DTC version of ESPN. We also celebrate the resilience of Ukrainian workers who are supplying vital harnesses to the Automotive Industry. Crypto takes a polar plunge as its primary currencies Bitcoin and Etherium are worth less than 50% of their peak. Bitcoin 69k in November to 25,332 yesterday. Currently hovering around 30k Eth 4,867 to 1,701. Currently just over 2k Decentraland .80 to 5.91 to .71 all in 6 months Brian Armstrong, Coinbase founder, has lost 82% of his wealth. Down to 2.2B TAKE AWAY: All those millennials who are in crypto aren’t as flippant with their dollars as they were last month. Affordability issues are broadening. ESPN planning on a full DTC transition On a call with investors, CEO Bob Chapek discussed making ESPN exclusively a streaming property, noting that Disney would only do so “when it’s going to be good for our shareholders.” “When we do, we will be able to fully go into an ESPN DTC model,” said Chapek. “It will be the ultimate fan offering that will appeal to superfans of sports.” He also noted the power of sports as Disney rolls out an ad-supported streaming offering. TAKE AWAY: Attention is the most valuable asset in marketing, entertainment, and Automotive German supplier Lenoi reports Ukraine wiring harness output nearing pre-war levels “Workers at Leoni's Ukraine factories, fearful that their jobs might permanently be lost, petitioned to come back to work, drawing up a plan on how to revive operations.” On a Q1 earnings call, CEO Aldo Kamper told shareholders, “We can fully service customer demand out of our Ukraine facilities, which is fantastic news, “We hadn't expected that when the war broke out.” 7,000 employees in Ukraine, out of a total global workforce of 101,000 TAKE AWAY: This is what a combined and compelling mission can accomplish. Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: <a href='htt
Thu, May 12, 2022
Toyota adjusts profit targets, Retail Auto stepped up, & Flying cars!?
Shoot us a Text. We’re back in our respective Nashville and Syracuse saddles today as we give a flyover of the on-the-ground reaction of the Retail Auto Industry to the Carvana layoffs as well as Toyota’s decline in profitability due to raw material costs. Speaking of ‘flying over’, we talk about one company working to bring flying cars to the masses. How the retail auto industry approached the Carvana layoffs: LinkedIn People willing to hire People willing to consult People caring about people Take Away: Matter how big or small the organization is, losing sight of the people that make it up is simply not an option. Take time for your people today. Toyota seeing decline in profitability due to raw materials costs “The Japanese automaker said it expects materials costs to more than double from 1.45 trillion yen, or about $11.1 billion, in its fiscal year that started in April.” Toyota on Tuesday said it would suspend operations on 14 lines at eight domestic factories for up to six days in May due to lockdowns occurring in China. Take Away: We continue to stress: control what you can. Whether supply chain, or Covid, or inflation, be ready to adjust and pivot but make sure you have your finger on the pulse of what you know best about your business. AeroMobil working to bring flying cars to the masses “The ultimate vision is to offer millions of customers in the U.S. the ability to use a flying car,” says Patrick Hessel, AeroMobil CEO. Hessel, who was named Ernst & Young Entrepreneur of the Year in 2015, says the main challenge of engineering a flying car is the weight due to the automotive technology inside the vehicle. Take Away: It may not be the next EV, but you can be sure people that you encounter will have questions. Let’s make sure our industry can answer questions for ALL transportation needs. Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ---------------------------------
Wed, May 11, 2022
Gone is the iPod, Carvana in the News, & the VW Scout back as an EV
Shoot us a Text. Digital Dealer may be wrapping up today, but the automotive industry has a full head of steam. For those that are iPod historians, we have a sad truth hitting the airwaves today. From things leaving to things coming back, we know that change is always in the air in the current market. Apple to Sunset the iPod for good Released in 2001 and touted to hold up to 1,000 CD-quality songs on a device that fits in your pocket. By mid-2007, more than 100 million iPod devices had been sold. Take Away: Not everything lasts forever. Even the greatest of inventions/innovations sometimes need to make way for future change and innovation. Carvana to freeze executive salaries and cut 2500 employees The 2500 employees make up 12% of the company The news comes just after Carvana closed the deal to acquire ADESA “They have lost more than 50% since raising $1.25 billion in an equity offering last month.” Employees taking to Twitter to talk about the seemingly cold way the company approached the cuts Take Away: As dealers, our people are our greatest asset. Care for your people well and they will care for your business well Volkswagen is bringing back the Scout as an off-road EV brand Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials Website: https://www.asotu.com/ Instagram: https://www.instagram.c
Tue, May 10, 2022
LIVE at Digital Dealer, Tampa, Ford Sells Rivian, F1 in Miami, Crypto Crashes
Shoot us a Text. We are brimming with pride after seeing so many incredible people from across automotive yesterday. This industry really is incredible, and being in person with so many of the brightest minds confirms it over and over. We are live at Digital Dealer Tampa and talking through the Ford share sell off, F1 Miami for the weekend, and the reality of Crypto matching stocks staring at everyone. Ford sells 8 million shares in Rivian sending stock plummeting A stock lockup period for company insiders and early investors such as Ford expired Sunday. Rivian’s stock ended the day at $22.78 a share, down nearly 21% Down 78% for the year “Rivian said in March it expected to produce 25,000 electric trucks and SUVs this year, as the start-up battles through supply chain constraints and internal production snags. That would be just half of the vehicle production it forecast to investors last year as part of its IPO roadshow.” F1 Miami Exceeds and Fails Expectations all at the same time. Who’s who in the US Rise to fame of world sports (F1, Soccer) The asphalt “almost feels like gravel,” said Max Verstappen, the reigning world champion who won for the third time through the first five races of the season. He also said the chicane was suited for a kart race and not an F1 car. Crypto crash is real plunged almost 12% Monday to below $30,000, down more than 50% from its all-time high in November, according to CoinDesk data. 31,554 as of this morning Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials Website: https://www.asotu.com/ Instagram: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FaceBook: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversa
Mon, May 09, 2022
Digital Dealer Preview
Shoot us a Text. We’re giving our quick takes and must see sessions on the first day of Digital Dealer in Tampa , Florida. Monday Expo Hall grand Opening at 11am Community Generated Entertainment: The Future of Entertainment is Happening Now 1:10-2p Jodi Porter, Industry Director, Autos and Dining TikTok Kevin Frye - same time 4:30 Keynote Tim Daher - Sr Account Exec, Autos, Amazon Ads Tuesday 9-9:50 : The Metaverse: The Next Frontier in Auto Retail: KRAMER! 10-10:50: Profits, P.O.’s and closed R.O’s - Developing Business in the Service Lane With or Without a BDC: Erikka Tiffani Wells 1:20-2:10 : How to Build Incredible Value Into Your Vendor/Dealer Partnerships: Kyle and Paul 4:10 - 4:40 Ask the Dealers! Amanda Gordon|Founder and CEO, GoJo Auto Alex Flores|Owner, Bravo Auto Group Jennifer Scarbrough|Vice President, Swope Hyundai Matt Lewis|Vice President, Lewis Automotive Group Paul Sansone, Jr.|Owner, Sansone Jr’s 66 Automall Rick Ricart|President, Ricart Automotive Grant Hocking|E-Commerce Director, Morgan Auto Group Brad Wise|General Manager, Ferman Chevrolet Mazda David Villa|CEO, iPD Agency DD Party 8-midnight. If you see us, come say 'hi' ! Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials Website: https://www.asotu.com/ Instagram: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FaceBook: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: <a href='https://www.asotu.com/media/push-back-
Sat, May 07, 2022
That One Discipline That Can Change The Game
Shoot us a Text. Today we get a quick word from the one and only Glenn Lundy to get our Saturday started on the right foot. Glenn is an OG friend of ASOTU and you can learn more him at Glennlundy.com Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials Website: https://www.asotu.com/ Instagram: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FaceBook: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, May 06, 2022
BMW Changing Roadside Service, Ford Trolls Musk & Mastering Multitasking
Shoot us a Text. Only one weekend away from Digital Dealer and our ASOTU Family Reunion:Remix event! We are resting up to be ready to see all of our friends again. Today we take a journey around humanizing your approach in business. Facetime-like roadside assistance for BMW drivers is a reality Leverages Blitzz platform to allow BMW drivers to have a live agent talk and sometimes literally walk them through troubleshooting issues with their vehicle One user called about a low coolant light and the rep walked (virtually) through the parts store aisle to choose the right coolant Another helped troubleshoot plugging into a charging port Averaging 150-200 calls per month Blitzz services companies like FedEx, Safelite, Sealy and more Take away: The human element of empathy is much better expressed visually. Know went to be quick with communication via text, email and when it’s better for the consumer to see another human Ford Trolls Elon Musk in new commercial celebrating its workforce “Right now, it could seem that the only people who matter are the loudest. Those who want to tear things down, and then fly away on their own personal spaceships when things get harder.” Agency Wieden+Kennedy created the new spot Take away: Every dealer has a differentiator. Talking about it in the most relevant context possible is the way to stand out. Overcoming Multitasking’s impact on your already busy brain “Media multitasking is making us less productive, not more, according to neuroscientists and others who are studying this.” “Nonstop toggling between devices and apps slows our ability to process and retain information, decreases our ability to filter out extraneous information, shortens our attention span and causes us to make mistakes, neuroscientists say.” Carl Marci, a psychiatrist at Massachusetts General Hospital in Boston who has researched media multitasking extensively, says 2002 study showed American adults spent 40 hrs a week consuming media, in 2022 the number has doubled to 80 Children suffer learning decrease when media is on in the background or when they are texting or checking social media during study </l
Thu, May 05, 2022
Money, Crypto, Money, Interest Rates, Money
Shoot us a Text. Today we’re making finance fun as we talk about yesterday’s interest rate hike, the NFT that broke the blockchain, more Dealers accepting crypto and how you can make sense of it all whatever your position in the Dealership is. Fed raises rates .5% for the second time since 2018. Highest one-time increase since 2000 Second of seven planned increases this year Fed reserve targets a 2% inflation rate, we are at 8.5% as of march They say inflation is showing signs of peaking Theory: Higher rates make borrowing money more expensive, thereby slowing spending and curbing consumer demand allowing prices to stabilize Take away for dealers: With affordability already being an issue, look for ways to ease the pressure in other areas for your consumers. This could come in non-automotive related areas through partnerships with other local businesses “Otherside” deeds for new metaverse land temporarily shuts down Ethereum blockchain Bored Ape NFT’s (the most popular NFT by sales) was acquired by Yuga studios who now owns Apes, Punks, Cool Cats, World of Women, and more. Launched their own crypto currency, Apecoin Announced creation of new metaverse world called “Otherside” and had a sale of ‘deeds’ to 55,000 parcels of land where uses can use their NFTs as avatars Each parcel averaged $5800 but a ‘gas’ war ensued with network congestion pushing prices for the transaction as high as an additional $6k The Otherside mint’s gas war “burned” more than $157 million worth of ETH in hours ‘Ebay of NFTs’ OpenSea, has burned $630 million worth of ETH … over nine months. As of this morning, floor price is 3.77 ETH or $11,204 Take away for dealers: With crypto currency use being adopted in more dealers across the country everyday, having a basic knowledge of how consumers are earning and trading it is an important step to understanding your customer. More Dealers than ever accepting cryptocurrency as payment “Last month, Mercedes-Benz of Fort Mitchell in Kentucky sold a certified pre-owned 2021 Mercedes-Benz S580 to a buyer in Saudi Arabia who had submitted an Internet lead and paid using the ethereum cryptocurrency, said Kevin Frye of Jeff Wyler Automotive Family. Frye heads up marketing for the group, which owns the Fort Mitchell store.” "For us, it's really no d
Wed, May 04, 2022
OEM Dips, Lots of Summer Trips, and the Art of Haptic EV Motorcycles
Shoot us a Text. We can’t believe we didn’t work on a ‘May the 4th be with you’ story as we’re talking about the consumer mindset today. Despite inflation and record-low OEM production, consumers are planning a big summer according to indicators, and we think Retail Auto should have something to do with making it happen! Several OEMs report double-digit drops in deliveries for April YoY. Each company pointed to ongoing supply chain issues pulling down day supply, leading to lower delivery volumes year-over-year. Kia - 16% Hyundai - 20% Toyota - 23% Honda - 40% Genesis + 45% (5k v 3200) Experts watching the situation hold to a return to normal inventory levels in 2023, but admit the balance between inventory and customer-facing inflation is delicate and can lead to unpredictable blips in the business. Take away for Auto Dealers: This is why focusing on the things you CAN control separates the winners from the losers. Process, company culture, and brand deployment lead to increased market-share. AirBnB showing very strong Summer demand w bookings at higher than usual prices “...said it expects to post its first (ever since its founding in 2008) full-year net profit this year after its revenue climbed 70% last quarter as people continued to book suburban rentals despite hosts raising prices.” “Revenue was helped by customers booking a record number of nights and so-called experiences during the quarter and hosts raising nightly rates because of inflation. Airbnb’s gross bookings—the value of bookings made on its platform—grew 67% to $17.2 billion, a record.” Take away for Auto Dealers: The consumer mindset is all about having a great, post-pandemic Summer. Help them do it. Harley Davidson’s EV Brand “Livewire” is about to release the Del Mar , a middleweight motorcycle built around LiveWire’s Arrow platform, which includes a battery pack, electronics, and motor, in a single unit that the company can then build various bikes around Expected to be much cheaper than the Live Wire 1 which MSRPs over $21k 0-60 3 seconds 146-195 miles per charge 80 mins full charge Haptic pulse Take away f
Tue, May 03, 2022
Ending EV Credits, 500k Retirees Re-Enter the Workforce, Facebook Flips Switch On Podcasts
Shoot us a Text. Today we are talking about identifying the things we both can and can’t control as we talk about EV credits ending for Toyota, a growing number of retirees getting back into the workforce due to rising costs, and Facebook calling it quits on its podcast platform just one year after launch. Toyota is the next manufacturer in line to expend their federal EV tax credit following Tesla and GM $7,500 tax credit to buyers of fully or partly electric cars, but only up to 200,000 per company 183,000 as of the end of 2021, according to an analysis by BloombergNEF (8,421 last quarter phase-out process starts two quarters after the cap is reached, halving the incentive for the next 2 quarters Toyota, Tesla, GM are lobbying for an extension but opposed to an additional $4500 credit for unionized manufacturers. The additional amount has reached much opposition since there is already high demand and backlog for EVs Take away for Auto Dealers: It’s good to pay attention to the air war, but you will always win or lose based on the ground game YOU control Workers over 55 are re-entering the workforce citing inflation as main cause “labor force participation rate”, over 55 rose to 38.9% in March from 38.4% in October Over half a million people Veronica, retired S.C. school teacher is reluctantly looking for a job as an Educational consultant Has been babysitting grandchildren but that’s not providing enough money now Certainly not looking for full time, but predicts she will need to work several more years Bruce (64) has been retired for a year, misses work but cites costs as a primary reason to get back into his specialized field of compliance and information management Likes the structure and routine of work, and realizes the extra money is becoming more of a necessity than a luxury Take away for Auto Dealers: Where can you leverage this growing labor force in places that require some maturity, stability, and gratitude. Facebook is rolling up it’s podcast platform a year after launch as it reevaluates audio strategy Facebook spokesperson Adelaide Coronado told The Verge “We’re constantly evaluating the features we offer so we can focus on the most meaningful experiences.” Take-away for Auto Dealers:
Mon, May 02, 2022
“Shifting Top Spots, Auto Intel Report, Cryptokicks by Nike RTFKT
Shoot us a Text. It’s a sparkling-fresh new month as May rolls in with lots of optimism and opportunities. Today we talk about the shifting landscape at the front of the pack in Retail Auto as big players have been making big moves. We also talk about this month's Auto Intel Report by Steve Greenfield as well as update you on a crypto move we reported on regarding Nike months ago. Lithia (#2 in 2021) overtakes Autonation (#1) in Q1 sales indicating a potential change on the podium 64,942 v 56,442 Lithia’s acquisition strategy has been more aggressive marked by close of 34 store Suburban Group Asbury (currently #5) is also poised to overtake Penske (#3) this year due to its own aggressive acquisition strategy. Adjusted 2025 revenue target from $20B to 32B Last week reported 39,174 vehicles sold in Q1 +44% YoY #5 Group 1 Reported 29,498 #3 Penske estimates are around 30k units sold Steve Greenfield’s Auto Intel Report: It’s a good time to be an auto dealer 2021 most profitable year ever, 2022 tracking to be 15-35% better, but there is change ahead as inventory levels regulate and business dynamics shift like never before Lithia Motors CEO Bryan DeBoer "In the first quarter, over 97% of Driveway transactions were incremental with consumers we had never transacted with in the past 15 years and the average shipping distance of approximately 920 miles. Amidst this growth, our average Google review was 4.6 stars, , driven by our focus on building the business sustainably and earning consumer trust for the entire vehicle ownership life cycle." Get the monthly email at automotiveventures.com Nike releases first NFT RTFKT sneaker drop with some prices already in 6 figures: Nike Dunk Genesis Cryptokicks 20,000 sold with different levels of rarity Inspired by the Nike Dunk Low and was released through the MNLTH NFT cube. Owners of the cube were tasked with completing challenges that were posted by RTKFT on various platforms including Twitter and Discord and upon completion, the RTFKT x Nike Dunk Genesis was unlocked. Also included in the MNLTH NFT cube was a special skin vial that allows fans to customize their virtual shoe. One extremely rare Alien skin vial has sold for 449,000 Get the ASOTU Daily Push Back email at https://www.
Sat, April 30, 2022
Don't quit when you're tired...quit when you're DONE! Feat: Brian Benstock
Shoot us a Text. There's something about the energy of a Saturday close to the month that got the ASOTU Crew all fired up. That's why we're releasing this special Saturday edition of the Automotive Troublemaker as a salute to everyone working the floor TODAY with a little help from ASOTU investor, Brian Benstock. Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials Website: https://www.asotu.com/ Instagram: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FaceBook: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, April 29, 2022
“Cat” Theft on the Rise, Sonic Boom, Rivian Drags Amazons Q1 Under
Shoot us a Text. Today we cover some high level topics like earnings from Sonic Automotive and Amazon, all the way to ground-level action like the meteoric rise of catalytic converter theft. We also give you a few reasons to go into your day with a smile on your face, and the car biz in your heart. Catalytic converters being stolen at record rates from across the country due to the value of the rare earth metals contained in them. 2020: 14,433 2019: 3,389 2018: 1,298 (2021 numbers not available yet) Up 425+% from 2019 and 1100% from 2018 “On one day in April in Houston, AutoNation Toyota Gulf Freeway had 66 vehicles waiting to have their catalytic converters replaced after thieves stole them. Two of those vehicles were back for a second time after being targeted again.” Contain a few grams of precious metals, Rhodium 1,660, Palladium 2,200, Platinum 990/oz One Tundra was down for 167 days Can sell for $250-1500 depending on the model Legislation requiring vin stamping is being proposed to eliminate the black market More Q1 growth reports from t he ‘publics’. Sonic Automotive reports $97.3 million in net income, an 80% YoY increase Franchised dealerships, avg gross profit per retail new vehicle doubled > $6,771 Avg gross profit per used vehicle also went up Total F&I gross profit per retail vehicle $2,495, an all-time quarterly record. Echo Park revenue up to $625.3M but high expenses led to a loss of $34.9M One acquisition in the Q1, Sun Chevrolet in Chittenango, N.Y., its first franchised dealership in the state. Amazon’s First Quarterly Loss since 2015: $3.8B vs $8.1B profit a year ago Revenue up 7%, product sales flat Big hit from its 18% stake in Rivian which has lost 65% of its value so far this year Ad sales grew 25%, AWS sales rose 37% CEO Andy Jassy said, “The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” Amazon expess operating income for current quarter to be between -$1B and +$3B Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: <a href='https://www.asotu.com/media/push-back-em
Thu, April 28, 2022
The Human Elements of Creativity, Popularity, and Parenthood
Shoot us a Text. Retail Automotive is an intrinsically ‘human’ business. That’s why today isn’t about metal and money, but about the human elements of creativity, popularity and parenthood (kind of). For us, that all translates into a much better business if you’re paying attention to the right things. Virtual meetings cramp creativity vs in-person new study shows “Video meetings dampen brainstorming because we are so hyper-focused on the face in that box that we don’t let our eyes and minds wander as much, a new study found. Staring isn’t good for creativity. While it’s rude to stare at someone in real life, it’s expected when on a video call, researchers said.” The study in the journal, Nature observed 745 pairs of engineers from different countries brainstormed creative ideas around items like a frisbee or bubble wrap In person generated an average of 17% more ideas The difference maker wasn’t the separation as much as it was the constant eye contact in virtual meetings The study began before the pandemic One suggestion is to turn off the camera when brainstorming F1 hits mainstream in Miami with groundbreaking race Popularity in the US credited largely to Netflix series “Drive to Survive” Race weekend tickets were initially sold for prices starting close to $1,000, with single-day tickets beginning near $600. SeatGeek was seeing an average price of $2,414 for the race. Tickets reached as high as $33,704 on the resale platform, as of Wednesday. Event organizers estimated the event will bring an annual economic impact of $400 million to Miami Gardens, including 35,000 hotel bookings and 4,000 new jobs. Broward County, just north of Miami Gardens, is expecting $50 million in economic activity. Young dad’s MLB catch while holding his son goes viral. Red’s v Padres game, 26 yr old dad feeding his 11 month old baby Never took the bottle out. Baby’s name “Shepherd Kingsley” <p
Wed, April 27, 2022
Lightning Is Out of the Bottle, Retiring On Bitcoin, and Pontiac Is Put Aside
Shoot us a Text. Today we talk about the very first Ford Lighting rolling off the production line, the largest retirement plan holder allowing investments in Bitcoin, and we’re talking about Pontiac’s final days. The very first Ford Lightnings have rolled off the assembly line Pre production began on Sept 21, 2021 (Just over 7 months ago) Executive Chairman, Bill Ford, “Today we celebrate the Model T moment for the 21st Century at the Rouge Electric Vehicle Center.” “The stunning anticipation for F-150 Lightning is a credit to the work of our Ford engineers and designers, and the UAW team members who are building these trucks with pride.” 200k Pre orders, Ford plans on fulfilling 150k this year Fidelity plans to allow investors to put bitcoin in their 401Ks . The plan will open the 23,000 companies that use Fidelity to bitcoin options later this year. Fidelity is the US's largest retirement-plan provider, but this move toward the mainstream for crypto will need the endorsement of employers to be complete, which remains to be seen. Under the plan, Fidelity would let savers allocate as much as 20% of their nest eggs to bitcoin, though that threshold could be lowered by plan sponsors. Vanguard Group, a major competitor of Fidelity’s, says it “has no plans to offer a cryptocurrency option within its 401(k) plans,” according to a spokeswoman. On its site, the company says, “since cryptocurrencies are highly speculative in their current state, Vanguard believes their long-term investment case is weak.” Overheard — “If I retire right now I can live on my savings for 30 years, now 10 years, now 41 years, now 3 years” On April 27th, 2009 GM announces plans to end production of the 80 year old Pontiac brand Pontiac’s origins date back to the Oakland Motor Car, which was founded in 1907 in Pontiac, Michigan, by Edward Murphy, a horse-drawn carriage manufacturer. In 1909, Oakland became part of General Motors, a conglomerate formed the previous year by another former buggy company executive, William Durant. The first Pontiac model made its debut as part of the Oakland line in the 1920s. The car, which featured a six-cylinder engine, proved so popular that the
Tue, April 26, 2022
Elon Buys Twitter, Vroom In The Texas Hot-Seat, A Real-World Metaverse Store
Shoot us a Text. Just 24 months ago, today’s episode would seem like crazy-talk, but instead, it’s real talk as we dive into Elon Musk’s purchase of Twitter, Texas’ turning up the heat on used car retailer Vroom, and Meta is opening a real-world store to hoc the metaverse. And it’s only Tuesday, Troublemakers. Vroom is getting sued by…Texas over alleged deceptive trade practices “According to a news release distributed on Wednesday, the lawsuit against Vroom, which also sells vehicles to Texas consumers under the name Texas Direct Auto, alleges that company has misrepresented and failed to disclose significant delays in transferring clear title and obtaining vehicle registrations, “burdening thousands of consumers.”” Also states Vroom failed to disclose vehicle history, condition, and financing terms Received over 5000 complains from the BBB Elon is buying Twitter for real 54.20 per share, a 38% premium Timeline of events: Jan. 31: Musk starts building his stake March 24: Musk starts critiquing Twitter, on Twitter “Worried about de facto bias in the Twitter algorithm having a major effect on public; Twitter algorithm should be open source,” Musk tweeted on March 24. “Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?” Musk asked his Twitter followers in a poll posted on March 25. “Is a new platform needed?” Musk asked in a tweet on March 26. “Am giving serious thought to this.” April 4: Musk’s stake becomes public, and he’s invited to join Twitter’s board April 5: Musk becomes an active investor -Musk refiled the disclosure of his stake to classify himself as an active investor, making the change only after indicating that he would accept a seat on the social media company’s board. April 9: Musk rejects the board seat April 10: Twitter makes the news public April 11: Speculation abounds: Musk files an amended disclosure with the SEC. He can now purchase as many shares as he wants. April 14: Musk makes his “best and final” offer to buy the whole company $54.20 a share, a 54% premium April 15: Twitter adopts ‘poison pill’ to ward off Musk takeover April 16: ‘Twitter’s board owns almost no shares’ April 19: Musk retains Morgan Stanley to consider leveraged buyout April 21: Musk lines up $46.5 billion in funding as he talks about a tender offer</li
Mon, April 25, 2022
NADA Franchise Report Breakdown, Abandoning Adessa, Manufactures in the Metaverse
Shoot us a Text. It’s a beautiful Monday to make some trouble as we give our quick takes from the recently released Annual NADA Franchise report. We also talk about what Toyota and Nissan are up to in the metaverse as well as the impending closing of Carvana’s acquisition of Adessa and what that might mean for the popularity of the country's second largest auction house. Annual NADA Retail Franchise Report Street purchases up 2x Cost/sale on the rise New vehicle supply under 25 days Over 271M Repair Orders written 1,055,400 Dealership Employees (avg 63) (pg 17) $8.9B ad spend (63.6 internet, 12.4 tv, 9.8 radio, 8.2 direct mail, 4.5 newspaper (pg 16) 2019 $9.25B , 2020 $7.48B, 2021 $8.19B (pg 15) Avg per unit: 2019 $640, 2020 $582, 2021 $602 Toyota and Nissan create virtual experiences in the Metaverse Toyota is leaning toward virtual workspace environments, catering to younger employees Nissan is focusing on virtual vehicle launches and consumer experiences Some Buyers and Sellers Abandoning Adessa after Carvana Acquisition Lithia CEO Bryan DeBoer, during last week's first-quarter earnings call, believes seven manufacturers recently pulled vehicles from ADESA. Automotive News confirmed that Toyota Financial Services chose to end its relationship with ADESA effective April 1, a spokesman said. Erine Garcia acknowledged "small handful of both buyers and sellers" have chosen to leave Adding the ADESA sites would nearly double the volume of vehicles Carvana can process to as many as 2 million vehicles a year, the company said Deal is scheduled to close in May Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials Website: https://www.asotu.com/ Instagram: https://www.instagram.com/automotivestateoftheunion/ Twitter: htt
Fri, April 22, 2022
CNN+ Is Minus, Cox Auto Insights, and Saving Energy for Crypto
Shoot us a Text. Every time we get to tell the story of ASOTU, it brings so much energy to what we are doing today. Looking back, pressing forward, and living in the moment all allow us to keep the vision alive for you and for this industry! Disruption, business ebb and flow, and new trends are all a part of the show this morning, so buckle up and ride with us! CNN+ is no more after just a few weeks Only 10,000 daily users 150k subs Netflix 221M subs, Disney+ 129M Move comes as Warner and Discover merge. New CEO, David Zaslav, who wasn’t pumped about the project said he will be working to merge all the companies streaming services into one (HBO Max, Discovery) Cox Automotive released 10 key insights this week from its KBB Team Toyota is still on top EVs sales continue to increase Only four brands delivered year-over-year sales gains: BMW, Genesis, Mini, and Tesla Ford’s F-Series is still king Fiat sold only 340 vehicles in Q1 Luxury brands grabbed more share in Q1 Tesla is still the dominant player in the EV market Small vehicles are more popular than mid-sized, but the large are the most popular models In luxury, new is important Three segments account for 49% of US auto sales: Compact SUVs, Full-Size Pickups, Mid-Size SUVs Times Square went dark as part of a marketing campaign by crypto mining company Algorand The entire block went dark between 8 and 9 pm to conserve 23.4 billion joules of energy That amount would only power 1.5 seconds of Bitcoin network operations and only 6 transactions…however, on Algorand, that amount would power 350 million transactions and 2 weeks of network operations This is due to the manner in which the company authenticates transactions The tech was developed by MIT professor Silvio Micali Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positi
Thu, April 21, 2022
Major Auto Earnings and Losses, Netflix Gets Trashed, Lincoln Goes Full Experiential
Shoot us a Text. Today we dig into an array of earnings reports from public auto groups, automakers, and retailers. Namely, Lithia, Carvana, and Tesla. We also talk about consumer behaviors driving Netflix’s slide as well as Lincoln’s understanding of merging hospitality best practices with the automotive experience. Earnings and reports for top players: Lithia Q1 net income more than doubled, up 119% Overall revenue up 54% to 6.7B, a Q1 record New and used sales up 23% Avg gross profit per unit on new vehicles more than doubled to $6,179 Avg F&I also increased Avg cost of new $47,146 (+16%); used $30,323 (+32%) WAS 22,971 Carvana Revenue up 56% YoY to 3.49B Net loss of $506M. Last year was $82M (over 600% more loss) “In a letter to shareholders, Carvana CEO Ernie Garcia and CFO Mark Jenkins called the quarter "challenging." CEO Ernie Garcia (letter to shareholders) "Q1, I would say — it looked like the industry environment was deteriorating throughout," Garcia said during a Wednesday earnings call with investors and analysts. "Disentangling how much of that was affordability, how much of that was just general consumer confidence or interest rates, is very, very hard." “In January 2022, in recognition of Carvana selling its 1 millionth vehicle in Q4, CEO Ernie Garcia committed to giving current employees 23 shares of his personal stock once they reach their two-year employment anniversary, a gift worth over $100 million at the announcement’s stock price.” Tesla The company reported a monster $16.8 billion in automotive revenues, up more than 87% YoY. The company reported $18.76 billion in total revenue, more than a billion over what analysts expected. total profit of more than $5.46 billion, +132% YoY total vehicle production was up 69% (lol, you can’t be serious.) 291,189 Model 3 and Model Y vehicles were built in the quarter expects to reach volume production of a new 'robotaxi' vehicle without a steering wheel or pedals by 2024 Netflix loses over a third of its market value (35%) making it the worst performing stock of the year on Nasdaq 100 and S&P 500 Q1 net loss of subscribers when investors expec
Wed, April 20, 2022
Ford Ahead of Schedule, Consumer’s Show Up for Auto Show, MSRP for Charity
Shoot us a Text. It’s National Cold Brew Day and we’re going to need the caffeine as we talk about the F150 launch schedule surprise, consumer demand showing up in force at the New York Auto Show and one Dealer’s positive deployment of MSRP. It’s National Cold Brew Day . Really. 2 years old 2018 $339.4M in sales. Projected 1.63B in sales by 2025 As early as in 17th century Japan, we find references to cold brew coffee. When French troops fought in Algeria in 1840, they used cold brew coffee to combat the heat. American Civil War soldiers tasted a similar brew too. After a brief period of disappearance, cold brew stormed back into the limelight recently. Many chains like Starbucks, Duch Bros, and Dunkin offering specials Classic Chevrolet in Grapevine TX leverages ZO6 at MSRP to benefit charities Annual fundraiser will sell the much sought after Z06 to someone who donates 50k Eric Hall with the store told us they have already had 27 customers pledging contributions, with the resulting $1.3M distributed to the company's 13 charity partners Send us your positive Dealer stories to ASOTU.com/positivity Consumers show up while carmakers bow out of the New York Auto Show “The show featured a 250,000-square-foot indoor EV test track, where show goers could test drive a range of EVs from Chevrolet, Kia, Nissan, Volkswagen, Volvo, INDI EV and VinFast.” “Preliminary numbers suggest a strong opening weekend amongst the general public. Show organizers expect a million visitors by the time the auto show wraps on April 24” “General Motors decided that Buick, GMC and Cadillac would all sit out the New York Auto Show. That meant that EVs like the Hummer EV and Cadillac Lyriq were nowhere to be found. Mercedes-Benz, BMW and Audi passed on the event as well. Tesla passed. Porsche passed. Hond
Tue, April 19, 2022
Tim Cook and Linebackers, BMW Trolls Tesla, Maskless Flights to Tampa?
Shoot us a Text. On today’s show we preview our upcoming live event in Tampa on May 9th, The ASOTU Family Reunion : Remix. We also talk about Apples likely NFL deal, how BMW plans on retaking its luxury segment title, and could this be the end of masked flights? Apple may have already closed on a deal to own the rights to NFL Sunday Ticket according to sources close to the matter Could be 2.5B per year (recent MLB deal was 85M) May include Sunday Ticket, streaming rights, 49% stake in NFL Media Intended to drive Apple + subs NFL also contemplating its own $5/ mo streaming service to watch out of market games WWDC scheduled for June BMW tells Tesla that their EV reign is over “top executives said last week they are ready to bring out a fleet of electric vehicles, aiming to sell 200,000 of them globally this year — doubling the number it delivered last year. Tesla took BMW’s top spot in the luxury segment Jan / Feb 2022, Tesla - 71,250 new-vehicle registrations in the U.S. to BMW’ s 54,210 registrations The focus will be "on a very strong and fast ramp-up of electric vehicles," BMW Group sales chief Pieter Nota told journalists last week at a press event here. Tesla "had a unique selling point for quite some time. That's over," Nota said. BMW Group said it expects at least one out of every two vehicles sold to be fully electric by 2030 Unlike competitors, BMW isn’t abandoning its ICE vehicles and will move forward with a blended approach to stay flexible and resilient CDC Mask Mandate for Travel Struck down by Federal Judge An administration official said Monday afternoon that the ruling “means CDC’s public transportation masking order is not in effect at this time,” and that the TSA would cease enforcing it. Does this mean that no masks on the trip to Digital Dealer? Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials
Mon, April 18, 2022
Identical Invoice and MSRP Pricing, Honda Extends CPO, Airlines Brace For Impact of Summer
Shoot us a Text. Monday doesn’t disappoint with fresh ideas and challenges to kick off the new week. Today we’re talking about the future of MSRP and the Dealer’s role in new car sales, Honda making moves in the CPO space, and consumer indicators in air travel are a sign of the times regarding employment. It’s a good day to make some trouble. What will Dealers do when Invoice and MSRP are identical? Could it really happen? What could it mean for the Dealer and consumer Honda offering CPO warranty program for vehicles up to 100k miles There are now 3 tiers of CPO in the “HondaTrue” program A market share and brand-loyalty play “ …53% of certified pre-owned customers are new to the brand and 42% later return to buy a new Honda vehicle, hopes this keeps them in the Honda family for years to come.” Lifetime mapping, “ "We're trying to build a relationship that lasts a lifetime," Dan Rodriguez, who leads Auto Remarketing for American Honda, tells USA TODAY by phone. "We look at it as a way to bring (young buyers) in through Honda TrueUsed, graduate them to CPO, which is a little bit newer car, and then eventually, bring them to a new car." How does this give a pre owned edge over Carvana/Carmax sales? What will this do to aftermarket warranty sales? Airlines struggle to keep up with staffing and scheduling as the summer opens up Jet Blue is reducing flights to keep up even after hiring over 3000 workers “In an effort to make sure it has enough flight attendants working, JetBlue is offering a $1,000 bonus to flight attendants who don’t call out of work through May 31 and an extra $100 per trip for flight attendants who pick up open trips on days off, according to a memo to crew.” “Southwest raised starting wages to at least $17 an hour and no longer requires that most airport workers have a high-school diploma. Some 15% to 20% of new hires don’t show up on their first day for some roles, said Greg Muccio, the airline’s senior director of talent acquisition. “We were sort of shocked by it. We’ve just had to adjust,” he said.” “The operations staffing will be on a razor’s edge,” said Tim Donohue, co-founder of Aerology, a startup that works to predict flight disruptions. “The razor’s edge barely works when things go as scheduled.” Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts</
Fri, April 15, 2022
Amazon’s Inflation Fee, An Electrified Ram, GaryVee NFT Launch
Shoot us a Text. Today we talk about Amazon’s latest inflation indicator that will hit sellers before buyers, Ram is charging into the EV pickup market with a real-talk, crowdsourced mentality, and GaryVee launches the second series of his popular VeeFriends NFT Project. Amazon to levy a 5% fuel and inflation fee on sellers for first time ever Commences April 28th for sellers who use Amazon to stow, pack, and deliver In January there was an average of 5.2% fee increase for sellers Currently Amazon takes a 34% cut of all merchant sales “In an email sent to merchants Wednesday, Amazon said it has made big investments since the start of the pandemic to meet surging demand. Those include doubling capacity, adding 750,000 employees and raising the average Amazon warehouse employee wage to $18 from $15.” And electrified Ram is coming in 2024 The new design is being influenced and guided by the “Real Ram Talk” the company is gathering from customers on its site and at events Ram CEO Mike Koval says the company is leveraging it’s later than competitor release to its advantage to include and enhance features consumers want most Anyone can give feedback and view concept images on the “Ram Revolution” dedicated site Ram says it will have a full line of electrified model by, you guessed it, 2030 Entrepreneur Gary Vaynerchuck’s NFT project, VeeFriends, launched series 2 of his record breaking project today. The project is eleven months old and has over half a Billion in sales Private Discord has over 350k members Initial floor was as low as .5 ETH (~2,000 USD). Current floor is ~12 Eth or ~36k USD Sales in the last 5 days average over $200k Series 2 NFT’s are $995 and have limited availability. Series 1 holders get a Series 2 for free. Next in line are randomly selected members of the VeeFriends community who have the opportunity to purchase for 2 weeks ahead of the public mint. Series 1 issued 10,255 tokens, Series 2 will issue 55,555 Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: <a href='https
Thu, April 14, 2022
Launching Lightning, Honda’s 30 EVs by 2030, Elon’s Twitter Offer
Shoot us a Text. Thursday is electric as we cover the much anticipated launch of the Ford Lightning Pickup and Honda’s bold ambitions to launch 30 EVs by 2030. We also talk about Elon’s “best and final” offer to buy Twitter. All of it. We’re only days away from Ford’s F150 Lightning launch on April 26th Will hold event at Rouge Electric Vehicle Center in Michigan where it will celebrate the official start of production and feature several customer deliveries in a live streamed event Reservations capped at 200k, but it is unknown how many converted to orders 70 percent of Lightning reservation holders are new to Ford and to pickups $39,974 for Pro model - Platinum over $92k starting / 320 miles battery life Honda releasing 30 EVs by 2030 investing $40B Globally “As the world’s largest power unit manufacturer with annual sales of approximately 30 million units of mobility products including motorcycles, automobiles, power products, outboard motors and aircraft, Honda says that it aims to realize carbon neutrality for all products and corporate activities Honda is involved in by 2050. To this end, Honda believes that a multifaceted and multidimensional approach is needed, not a mere replacing of engines with batteries.” Shifting revenue model from non-recurring hardware sales to recurring services AND hardware approach. Software subscription, swappable batteries etc Elon makes “best and final” offer to buy Twitter $54.20 / share to buy 100% 799M shares outstanding Totals over 54B price / Current valuation about 38B Musk wealth is about 260B Says he may consider his position as a shareholder if his bid is denied Currently owns 9.2% Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials Website: https://www.asotu.com/ Instagram: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik To
Wed, April 13, 2022
Carmax Sales Swing, Asking the Real EV Questions, Keeping It Moving
Shoot us a Text. This Wednesday we dig into the Carmax Q4 shareholder report…and there is a lot to unpack. We also ask some real questions about EV rollouts and talk through how to prepare to respond. Everything is in a state of motion and we’re going to do what we can to ensure the ASOTU community is a step ahead. Carmax Pre Owned Sales Drops 5.2% in its Fiscal Q4 Sold fewer units citing affordability issues Sales revenue increased by 33% due to higher average retail price “Bought approximately 324,000 vehicles from consumers, a 69.0% increase versus the prior year quarter. Approximately 162,000 of these vehicles were purchased through our nationwide online instant appraisal offerings. For the fiscal year, approximately 1,412,000 vehicles were bought from consumers, a 95.5% increase versus the prior year, including 707,000 units purchased through our nationwide online instant appraisal offerings. Total revenue up 49% - Total earnings slipped 28% Asking the questions about EVs: What will the margin structure look like? What level of additional training will be required Will sales comp plans bump into each other EV - ICE? What are the real opportunities? Leadership Principle: If you aren’t moving, you’re losing Everything else is in a state of motion and change If you are sitting still, you are losing ground Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials Website: https://www.asotu.com/ Instagram: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FaceBook: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Linkedin: https://www.linkedin.com/company/asotu/ <
Tue, April 12, 2022
Toyota Just In Time, Elon Deletes Twitter, and Flying Motorcycles
Shoot us a Text. We got a few recommendations for our newest podcast idea and are hunting for more! Today we talk about the future of flying vehicles, the influence of a ‘car guy,’ and Toyota recognizing the need for balanced inventory strategies. Did we mention we hit 10k podcast downloads yesterday!?!? Toyota adjusts inventory on hand targets Target is now 30 days and they don’t plan on going back to 45 17 days of inventory on March 1 “30 days sounds like nirvana” - CSO Bob Carter 1st quarter sales down 15% Elon rejects Twitter board seat Weekend barrage of suggestions, some of which are now deleted Did someone say “screenshots live forever?” No longer can you push something off until “when cars fly” ALI Technologies Inc. set for IPO Drone style motorcycle reminiscent of a Star Wars machine For only $777k, you can have one too! Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials Website: https://www.asotu.com/ Instagram: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FaceBook: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/aut
Mon, April 11, 2022
Events Season is Here, We Need a Show Name & Dealers Partnering w/ Athletes
Shoot us a Text. Welcome to the first week of what we are dubbing “events season.” Ok, maybe someone else called it that first. However, we can’t wait to see you soon at one or multiple of them. We also are doing some R&D on a new show and would love your help to curate the name of it. Launching into Monday like djsmokeysmoke (Jonathan Smoke) on a Spotify playlist! Events Season is Fired up Auto Intel Summit Digital Dealer VeeCon DMSC Kain Clients and Friends Dealers Partner With College Athletes The National College Athletic Association decided in June 2021 to allow college athletes to profit from their name, image, and likeness . Multiple dealerships have since partnered with college athletes, exchanging advertising for vehicles or pay. The future of retail last mile Get the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials Website: https://www.asotu.com/ Instagram: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FaceBook: https://www.facebook.com/automotivestateoftheunion Pinterest: https://www.pinterest.com/automotivestateoftheunion/_created/ Linkedin: https://www.linkedin.com/company/asotu/ ------------------------------------------------------------------ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: <a h
Fri, April 08, 2022
Diapers With Crypto, 500k Cars From A Single Factory, Trucker Salary Bump
Shoot us a Text. We’re troublemaking our way into Friday with stories orbiting the Retail Automotive ecosystem. Starting with an easier way to use crypto for regular purchases, moving on to the opening of the GigaFactory in Austin, TX, and rounding the corner to talk about Wal Mart’s new wage for high-demand truck drivers. Guess what, if you are in Retail Automotive (or retail in general) these stories apply to YOU. Paying for diapers in crypto is one step closer thanks to a new partnership between mobile payment app, Strike, and Shopify “"It's a new, innovative, superior payments rail that is finally embedded and distributed into our lives," Strike CEO Jack Mallers explained to a packed crowd at a Miami Bitcoin conference yesterday” Showed a video of him paying w crypto at a Chicago grocery store “Mallers showed a list of major U.S. companies that he says would be able to accept payments this way, including McDonald's, CVS, Walgreens, Whole Foods and Wal-Mart, in addition to several other grocery stores and restaurants.” According to Mallers' presentation, Blackhawk Network is integrated with 400,000 storefronts and has 37,000 partners Giga Texas rode wild with event in Austin Tesla factory 1000 attendees and factory tours Announced a 2023 cybertruck launch and up to 500,000 vehicles produced next year. Mostly Modely Ys “Half a millions units a year in a single factory of one product is the biggest dang thing in the world. This will be the highest volume car factory in America.” -Musk In total the facility is 338 million cubic feet, or 15 city blocks, Musk said. “It’s equivalent to three Pentagons.” All manufacturing on one site, including battery packs Also announced a new robotaxi and large van to come Walmart starting pay for truck drivers raised to between $95-110k Driver shortage and increased demand to move freight cited for the increase Average long haul driver in the US is only $56k “Walmart said it's coming off a record year for hiring truck drivers with over 4,500 hired and that it plans "keep hiring aggressively to meet customer demand." What will autonomous driving do to this number? A university of michigan study says it could eliminate 500k jobs Get the ASOTU Daily Push Back email at <a hre
Thu, April 07, 2022
CDK Acquired, Crypto-Bull, A Dark Horse In the Website Race
Shoot us a Text. We’re talking tech from across the spectrum today from finance, to websites, acquisitions. From Miami’s new crypto-symbolism, to a secret Dealer website project revealed, as well as a new play by Toyota regarding autonomous vehicles…we ain’t in Kansas anymore, Toto. CDK Acquired by Private Equity Group Brookfield “Brookfield will commence a tender offer to acquire all of the outstanding shares of CDK. CDK shareholders will receive $54.87 per share in cash upon completion of the transaction, which represents a 30% premium to the unaffected closing price of CDK stock on Feb. 18, 2022, the last full trading day prior to market speculation regarding a potential sale of the company. “ Recent acquisitions include Nielson Crypto-bull has been revealed at the Bitcoin 2022 Festival in Miami to symbolize Miami’s ambitions to be a city representing the “future of finance” More than 25,000 attendees have arrived to hear major announcements and mingle with the most influential people in crypto Florida weather and tax benefits are a big part of Miami’s ‘pitch’ Miami is working to make BTC legal tender across the city BTC down 30% from November 2021 and over 6% this week Auto Genius Labs makes surprise announcement that they have built a first-ever Automotive website with perfect speed scores and instant loading of 10s of thousands of vehicles for an app-like shopping experience for the Koons Automotive Group Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity ------------------------------------------------------------------ For all Things ASOTU Check out our Socials Website: https://www.asotu.com/ Instagram: https://www.instagram.com/automotivestateoftheunion/ Twitter: https://twitter.com/asotu_ Tik Tok: https://www.tiktok.com/@ASOTU FaceBook: https://www.facebook.com/au
Wed, April 06, 2022
The Top 150 Dealer List, Honda/GM Partner on EVs, Top 5 Gen Z Brands, and Creative vs. Volume Content
Shoot us a Text. Today we take a look at the latest Top 150 Dealer List published by Automotive News as well as Honda and GM’s Announced Partnership to develop affordable EV technology. We also dig into the top 5 Gen Z brands and talk about why we think they are at the top. We’ll also try to answer the question; “Which is more important; high quality creative or volume content:” Automotive News 2022 Top 150 List has been released, and there are some surprises, but not for us. Carter Myers Automotive led by Owner / CEO Liza Borches jumped 29 spots on the list from 117 to 88 Other Troublemakers on the list: West Herr from 22 to 17; Koons #30; Honda and GM partner for EV Manufacturing The Top 5 Gen Z Brands are Mostly Fashion, but More About Lifestyle Nike, Vans, Apple, Adobe, Honey Creativity vs. Content, which is most important Honda and GM partner for EV Manufacturing Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, April 05, 2022
Twitter Full of Characters, Auto Intel Reporting, Satellite Internet Heats Up
Shoot us a Text. Tuesdays are for Troublemakers. This Tuesday is no exception as we talk about the implications of a car-guy being the largest shareholder in Twitter. We also dive into Steve Greefields April Auto Intel Report and talk about the breaking news of Amazon’s entry into the satellite ISP space (pun intended). Elon Musk is now the largest shareholder in …Twitter. 9.2% to be exact. 2.9B as of Friday’s closing price. Musk filed a required SEC disclosure for anyone purchasing more than 5% a few days late Twitter surged over investor sentiment in Musk’s influence in the company “On March 25, 11 days after becoming the largest shareholder in Twitter, Mr. Musk tweeted a poll, saying, “Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?” He added in a follow-up tweet: “The consequences of this poll will be important. Please vote carefully.”” “Do you want an edit button?” Yse or On BREAKING: Twitter announced this morning that it will appoint Musk to its Board of Directors Steve Greenfield’s April Auto Intel Report is full of insights Dealer investor group is in full swing, research mode "We had record front-end margins, over $6,500 a copy in a new car for the quarter...we're pressing very hard for them [OEMs] not to bring inventory levels back to pre-pandemic levels….We should be selling cars at MSRP. I mean this industry needs to get away from doing all the negotiating. It's a hell of a lot less complex, much easier, and it brings the right value for the vehicle...I just don't see margins coming back going back to pre-pandemic levels ever. the only thing that can screw this up is if they bring the supply back to the 60-, 70-, 80-day levels that we used to see, I just don't see that happening."- Jeff Dyke, Sonic Automotive President "I need to make more money on the sale of the EV because there will be much less long term revenue from service and parts. I need to see a bigger upfront margin to operate a dealership profitably." Anonymous Nissan Dealer Amazon investing billions on launches to provide satellite internet Project Kuiper, Amazon’s planned broadband-satellite unit, has purchased up to 83 launches over five years to compete with Starlink “In 2020, the Federal Communications Commission authorized Project Kuiper to deploy 3,236 broadband satellites, according to a FCC filing. The agency required at least half to be operational by July 2026,
Mon, April 04, 2022
The Grammy’s Get Serious, LIFO On The Ropes, Lithia Looks For #1
Shoot us a Text. Welcome to Monday, Troublemakers! Today we talk about Ukrainian President Volodymyr Zelensky’s Grammy Appearance last night, a potential light at the end of the LIFO tunnel thanks to a Michigan Congressman, and a potential new seat atop the Automotive News Top 150 list. So grab some coffee and your sales reports, because it’s a good morning to make some TROUBLE. Ukrainian President Volodymyr Zelensky delivered a pre-recorded message at last night’s Grammy Awards before John Legend’s performance of ‘Free’. “Our musicians wear body armor instead of tuxedos,” he said. “They sing to the wounded in hospitals. Even to those who can’t hear them. But the music will break through anyway.” Here is a summary of other notable moments including quite a few jokes from presenters about not getting slapped Finally, a bill to provide Dealers relief from the unintended consequences of LIFO accounting in the midst of the inventory shortage “U.S. Rep. Dan Kildee(D - Michigan) on Monday plans to introduce legislation that would provide tax relief to dealerships that use the "last in, first out" inventory accounting method and have struggled to maintain inventory levels because of the global semiconductor chip shortage. “would allow dealerships to wait until as late as 2025 for their inventories to be replaced to determine the income attributable to the sale of inventory during 2020 or 2021” Lithia could potentially become the largest Dealer in the US per Automotive News Top 150 list due to acquisition and growth strategy “Lithia added 69 dealerships last year and retailed 260,738 new vehicles, a 52 percent sales gain from the year before and less than 2,000 new vehicles behind AutoNation, according to the Automotive News Research & Data Center, which compiles the list.” Over the last 10 years: From 9th to 2nd 56,960 sales to 260,738 (+458% 87 to 278 dealerships (+320%) Sales 35x what they were in 1997 Current CEO Bryan DeBoer joined LIthia in 1989 and world through the ranks Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email <
Fri, April 01, 2022
Ben-stocks, Negative For Positivity, and Crossfitters Pressing Fuel Prices
Shoot us a Text. Today’s episode cover some shocking news from the Negative test results for David Long, A New Automotive-inspired crypto currency, and harvesting human energy to replace internal combustion. Crossfitters Pressing Fuel Prices with a new app designed by Dealer, Patrick Abad. Dealer made crypto is blowing the doors off what fungible even means. Shocking negative test throws David Long’s pandemic into a tizzy. A dealership in space? It was only a matter of time . Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, March 31, 2022
Keeping It Movin’, No Excuses, Started From The Bottom
Shoot us a Text. Today’s show title may or may not include the summaries of our three main topics as song titles from the Troublemaker Swagger Playlist on Spotify. We’re talking about Toyota outpacing February production projections, Tesla’s plan to secure nickel supplies, and business students skipping Wall St for crypto. Toyota Motor Group produced 11% (including Daihatsu and Hino Motors Ltd) more vehicles in February 2022 than in the same month one year earlier. The month exceeded even Toyota's expectations by nearly 41,000 vehicles. Toyota alone still below last Feb but exceeded projections by 41,000 vehicles Honda, reported an 8.1% increase in the same month year over year Tesla is several steps ahead in mining Nickel Has been securing long term nickel contrasts far before the Russian invasion of Ukraine Two years ago Musk said, "Please mine more nickel," on an earnings call with producers. "Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way." "People don't realize how far ahead Tesla is when it comes to securing the supply chain for raw materials and an integrated approach to battery materials," said Todd Malan, a spokesman for Talon Metals whom Tesla has a contract to buy 75,000 tons of Nickel from Wall Street getting skipped by as business students lean into Web 3 as a career “The crypto sector has 12,000 open jobs right now, according to the aggregation platform TrueUp, including 3,000+ new listings opened last week.” many from non-banking sector companies like Spotify Talent often walking past big banking bonuses in favor of the excitement of blazing a new trail “Brandon Hoffman, a 2022 Columbia MBA candidate who’s interning at an NFT company, told us he’s excited because crypto “is like a new frontier. …I think that the infrastructure that is being uncovered every day that this platform provides, I think the applications are going to be very widespread.” “The students interviewed found their passion for crypto outside of classrooms all together. They mentioned blockchain clubs and Discord channels as common experiences at their universities. But overwhelmingly, they said they learned about crypto online, on their own.” Sign up for the ASOTU Daily Push Back email at https:/
Wed, March 30, 2022
Brand Loyalty Bumped, Sales slumped, and A Balanced NFL Postseason
Shoot us a Text. Wellllcome to Wednesday. Today we’re talking about what happens to brand loyalty when supplies are tight. Hint: It doesn’t go up. We also cover the most recent sales numbers for Q1 and some changes in the NFL that fans and teams are looking forward to March and Q1 new car sales number taking a hit due to supply shortages Analysts expect March U.S. new-vehicle deliveries to drop 24 to 26 percent to around 1.2 million, with the seasonally adjusted, annualized rate of sales falling to 12.7 million to 13.1 million, down from 17.79 million according to Motor Intelligence in March 2021, which kicked off the industry's hottest three-month stretch on record. The average new-vehicle incentive is on pace to reach an all-time low of $1,044 in March, LMC and J.D. Power said, a 69 percent decrease from a year earlier. One of the leading contributors to the sharp decline in incentives is the lack of lease deals as factory subvention eases. Leases accounted for 30 percent of all new-vehicle retail sales in 2019 but will account for just 18 percent of March retail volume, LMC and J.D. Power said. Average transaction prices are expected to reach a March high of $43,737, a 17 percent increase from a year ago, LMC and J.D. Power predict. First-quarter average transaction prices are forecast to reach $44,129, an 18 percent increase from the first three months of 2021. Brand loyalty takes a hit as supply chain issues and inflation kick the door in. “We are seeing people make more choices on items because they are available,” said Tony Sarsam, chief executive officer of grocery chain SpartanNash Co. In the Grand Rapids, Mich.-based company’s supermarket aisles, About 70% of U.S. shoppers said they had purchased a new or different brand than they had pre-pandemic, according to a survey conducted from May 2020 to August 2021 by private-label consulting company Daymon Worldwide Inc. Jif Peanut Butter is gaining ground, “There’s more to get if you can outperform,” Geoff Tanner Chief Commercial Marketing Officer said. About two-thirds of Smucker’s product portfolio is increasing its market share today compared with one-third before the pandemic, he said, and the company is boosting advertising. NFL changes postseason rules to give both teams an opportunity to score Proposed jointly by Eagles and Colts If the teams are still tied after both teams possess the ball, it becomes sudden death.</l
Tue, March 29, 2022
Pass the Chips, Former Disney CEO Makes Meta Moves, CarDealership Guy
Shoot us a Text. It’s a good (maybe great) day to make some trouble this fine Tuesday morning as we talk about moves to make the US more chip-friendly, the former Disney CEO who is betting big on metaverse swag (can you make us a flat-brim hat?), and the anonymous twitter account allegedly run by a dealership operator that is Trouble-with-a-capital-T. Pass the chips: US Senate passes and sends $52B bill to House to vastly increase the strength of US semiconductor chip production In the early 2000s, US accounted for 40% of chip production, today it is only 12% Subsidies, grants, and environmental provisions are included in the bill which could pass sometime in June One of the most vocal opponents is Independent Senator Bernie Sanders who believes “"The financial gains made by these companies must be shared with the American people, not just wealthy shareholders," Former Disney CEO, Robert Iger, joins new metaverse creative company, Genies who allows creates tools for users to develop clothing, fashion items, and interactive experiences for avatars. His first move since leaving Disney (2005-2020). “Mr. Iger said he was attracted to Genies because he believes the ability for anyone to easily create and sell virtual goods will change the entertainment industry and be a key component of the metaverse, a term used to describe developing virtual worlds where people are expected to work, learn and socialize” ““Imagine, you know, letting someone buy a Mickey Mouse avatar and customizing it in a way that not only would we never allow it before, but it was kind of hard to do in the physical world,” Genies recently raised 100M and employs 100 people @cardealershipguy is tearing it up. Troublemaker to the bone. We’re not saying that the account is run by us, but we are saying that we’ve never been seen in the same place at the same time. Same logic goes for us being Batman. Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at <a href='https://www.asotu
Mon, March 28, 2022
Customer Experience From Chipoltle to Baseball, A Streaming First, Ditching the Old Indicators for Nimble Insights
Shoot us a Text. This Monday Morning we’re making TROUBLE by calibrating the Consumer Experience dial with real-world, real-time evidence. To quote the heroine Dorothy,“We aren’t in Kansas anymore.” We talk about a Rochester Chipotle rep, new rules for baseball, an Academy Award first, and a word from some friends at JD Power about how we should be treating the indicators we’ve been using. Chipotle forgets the chips and a call center rep in Rochester, NY saves the whole thing. First ever streaming service Best Picture Award last night at the Academy Awards for “CODA” on Apple TV+ We have to change the way we consider ‘indicators. “As a result, conventional indicators and benchmarks that once guided automotive decision-making will no longer be as effective in gauging key market trends to assess used-vehicle prices and valuations.” “Pandemic variants, supply-chain challenges and economic volatility have created a warped market for new and used vehicles and will continue to disrupt the automotive sector for the foreseeable future, according to a recent analysis from J.D. Power.” Morgan Hansen, VPdata Science at ALG, J.D. Power Valuation Services. David Paris , Senior manager of market insights at J.D. Power Valuation Services Savannah B-A-N-A-N-A-S. They’re making trouble by creating “Banana ball” and making their own rules …and the people LOVE IT Fan catches a foul for an out No Walks Rule: On a ball four, a walk becomes a sprint. Every defensive player has to touch the ball before it becomes live. Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: <a hre
Fri, March 25, 2022
The Return of Honest Instagram?, Seizing Auto Manufacturing, Teen Hackers, and Remoooooote Work
Shoot us a Text. On this beautiful Friday Morning we’re leaning into the human element as we talk about how your teams are using social media (and how you can too), Russian Auto Plants potentially being seized, and the teenage talent you’re likely overlooking. We also get into the gains and losses of remote work culture. That’s where all those Instagram friends went! Instagram brings back the OG Chronological view Now you can toggle by tapping the instagram logo and selecting ‘following’ to kill the algorithm and seeing your people un-algorhythmed. Putin floats seizing Auto manufacturing facilities who have ceased operations ‘unreasonably’ Companies who have paused operations include Volkswagen, Stellantis, Ford, Mercedes-Benz and Renault Billions of dollars are at risk, but not a death blow to anyone Factories can’t simply be restarted Lapsu$ hacker group mastermind is found to be a 16 year old Oxford, England Teen Hacked companies like Microsoft and Nvidia, threatening to leak info if they weren’t paid. The teen was reportedly so skilled and fast that investigators originally thought the attacks were automated Reportedly made over $14M Authorities uncovered his identity after a rival group released his personal information including his address Meta Executives are taking remote work to another level as top executives ditch the Menlo Park campus for exotic and remote locations such as Hawaii, Israel, U.K., and more “Naomi Gleit, the company’s head of product and one of its longest-tenured employees, has relocated to New York. Chief Marketing Officer Alex Schultz plans to move to the U.K., and Guy Rosen, the company’s vice president of integrity, will be moving to Israel in the near future, according to a company spokesman.” Javier Olivan, Meta’s chief growth officer, has split his time between California and Europe but is planning to spend more time abroad, the spokesman said. Adam Mosseri, the head of Instagram, in recent months has been traveling and working remotely from locations including Hawaii, Los Angeles and Cape Cod, according to people familiar with the matter and the executive’s social-media posts. Zuck is planning on splitting his time about 50/50 away from
Thu, March 24, 2022
Pent Up Demand, Tesla Party Permit Getting Punked, Meta Execs Far From Home
Shoot us a Text. Today we talk about the potential effects of all the pent up demand that may be building and what that may mean for the next year or so. We also talk about a community pushing back against a Tesla grand opening party. We’ll also take a look at the extreme remote work happening among Meta Execs. As some buyers stay on the sidelines, pent up demand continues to grow according to Thomas King, J.D. Power’s president-data & analytics and chief product officer King forecasts heightened buying levels will consume inventory once it is more readily available, keeping demand strong Above MSRP sales were 65% in this year’s Q1 vs. about 15% at the same time last year, says King average vehicle transaction price reached $44,400 this year compared with $34,300 in 2020 End of month carmaker tactics that reduced margin to increase sales dropped from 17% to 8% Trade values average $9,380 compared with $4,246 three years ago Lease turn ins this year are half what they were last year. 1M down to about 500k Tesla’s 15k person Grand Opening party for its Texas plant is hitting resistance obtaining a permit from Travis County The argument is that Tesla is treating the community like a workforce and not a community and says this party will not do anything to build community Meta Executives are taking remote work to another level as top executives ditch the Menlo Park campus for exotic and remote locations such as Hawaii, Israel, U.K., and more “Naomi Gleit, the company’s head of product and one of its longest-tenured employees, has relocated to New York. Chief Marketing Officer Alex Schultz plans to move to the U.K., and Guy Rosen, the company’s vice president of integrity, will be moving to Israel in the near future, according to a company spokesman.” Javier Olivan, Meta’s chief growth officer, has split his time between California and Europe but is planning to spend more time abroad, the spokesman said. Adam Mosseri, the head of Instagram, in recent months has been traveling and working remotely from locations including Hawaii, Los Angeles and Cape Cod, according to people familiar with the matter and the executive’s social-media posts. Zuck is planning on splitting his time about 50/50 away from his California residence Sign up for the ASOTU Daily Push Back email at https://www.as
Wed, March 23, 2022
A Dealership Was a Zoo, Crowd Sourced Markup Tracker, Grit From Ukraine Workers
Shoot us a Text. It’s a great day to make some trouble as we cover some stories from the retail front door all the way across the world to wiring harness production in the Ukraine. From turning a showroom into a zoo, to consumers creating their own way to track dealership markups, all the way to Ukraine workers boosting wiring harness production, we’ve got trouble brewing…in good ways. Wire Harness Production to increase in Ukraine amidst shelling and curfews Increasing from 40-70% by adding a night shift Incredible determination and grit We are impacting lives far beyond our storefronts Someone created a crowdsourced markup tracker Bob Lanham posted this on Linkedin with a flurry of comments ensuing Divided response Jimmy Jones with Byers Automotive caught my eye. "Bring the kiddos by the store tomorrow to see some animals from the Columbus Zoo!" he wrote 300 people and six animals (Leopard Tortoise, Echidna (a porcupine-like animal native to Australia), Armadillo, Shingleback lizard, Anteater ,Sloth Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, March 22, 2022
Still A Seller’s Market, German EV Race, Will SXSW Ever Really Return?
Shoot us a Text. Today we ask the question, “With the dealership selling frenzy that happened in 2021, is it possible for 2022 to beat it?” We also talk about the Giga-opening in Berlin and what it means for the EV race in Europe, as well as the closing of this years SXSW festival and whether or not it will ever return to its former glory. Acquisition condition outlook very favorable in 2022 2021 totals - 376 transactions for 673 stores 2022 so far - 52 transactions for 78 stores “Key conditions making the market ripe for consolidation — high profits, rising store values and retirement-ready owners, for instance — appear to be sticking around for now, dealership brokers and retail consultants say.” Erin Kerrigan - “"If you had asked me in December, I would have expected the buy-sell market to be around the same level as 2021," Kerrigan told Automotive News at the NADA Show here. "But based on the first two months of this year, I think the buy-sell market of '22 will be more active than '21, which I didn't think I would say.” Alan Haig - "The deals in our pipeline indicate that this is going to be as good a year in terms of the number of rooftops, but even better in terms of the value that our clients are getting for their businesses," Tesla to deliver the first 30 vehicles from its new Berlin-Brandenburg Model Y Performance (63,990 euros ($70,334) with a 514 km (320 miles) range) 3000 of the 12000 workers have been hired JPMorgan forecast that the factory would produce around 54,000 cars in 2022, increasing to 280,000 in 2023 and 500,000 by 2025 Currently VW dominates the EV space w 25% market share to Teslas 13% and has 95k EV orders VW is “...is planning a new 2 billion euro EV plant alongside its Wolfsburg factory and six battery plants across Europe” SXSW is a wrap and all the rage were NFTs and Crypto …big surprise! Will the show ever return to its former glory? This guy real world jumped a Tesla on an LA Street Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: <a href='https://www.asotu.com/me
Mon, March 21, 2022
Metaverse Madness w/Brian Kramer, New(er) EV Price Hikes, Banks Pushing Back
Shoot us a Text. This Monday we are waking up to a world where you can buy and sell a real life vehicle in the metaverse. Our very own Brian Kramer lets the team who executed the first transaction and we’re going to get into it. We also talk about some new EV price hikes as well as offer a little education on Banking and Defi…it’s not as boring or irrelevant as you might think. Brian Kramer, GM of Germain Toyota of Naples executes first ever retail auto transaction in the metaverse The Troublemakers are the first to report on this :) Was Kyle there? Check out the video here Let’s talk about EV price hikes Tesla announced last week that the price of its model 3 is going up making its cheapest vehicle 48,190 Model 3 We talked 2 weeks ago about Rivian’s price hike debacle Chinese EV maker Xpeng Inc announced Friday they, too, will be increasing prices on their EVs. Depending on the model, the increase will be between $1,500 and $3,000. Lucid is also in the game Pendulum swings as interest hikes give Banks leverage over fintech Zero interest rate environments provide big cash from investors struggling for basic yields into the fintech space putting Banks at a disadvantage Now that standard rates are going up, Banks can leverage deposits as a cheaper form of liquidity for loans Fintech companies like Affirm still have a strong value proposition because loans are short term and the money turns over faster and is often subsidized by the seller Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https:
Fri, March 18, 2022
March Madness Money, Mortgage Rates Climb, Netflix Sharing Party Over
Shoot us a Text. We wake up on a Friday morning expecting that our good friend Brian Kramer is poised and ready to complete a vehicle transaction in the metaverse! Tons to talk about around the world of news, including some resilient workers in the Ukraine keeping automotive rolling. NIL (Name, Image, & Likeness During March Madness is in play for First Time Dollar Shave Club, Wing Stop, Great Clips, Sheets and Giggles Mortgage rates top 4% for the first time since 2019 Rates climbed ahead of the feds decision to raise benchmark rates .25 “Banks borrow from each other at the Fed’s benchmark federal-funds rate, which in turn influences borrowing costs for all manner of consumer and corporate debt.” Ukraine workers are still producing wiring harnesses next to bomb shelters Audi CEO Markus Duesmann “Many of our suppliers, especially for wiring harnesses, were in Ukraine, or are in Ukraine. They are desperately — even with the people staying there, which is incredible — trying to produce, and doing so always close to a bomb shelter," Duesmann said stoically. "They try to produce, which is an enormous achievement [for] a really proud and brave people there." Netflix to crack down on account sharing Up to 3 ‘sub accounts’ Testing in Costa Rica and Peru ($3 and 2.10) Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity #automotivenews #automotiveindustry #retail #ev #tech #asotu #interestrates #metaverse #inflation Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: <a href='https://www.linkedin
Thu, March 17, 2022
Feeling Lucky or Unlucky, HSBC and Retail Auto in the Metaverse, Consumers Pushing Back on Pricing
Shoot us a Text. On this St. Patrick’s Day there are plenty of folks feeling both lucky and unlucky. Today we talk about the big ASOTU announcement at NADA, the first Retail Auto transaction in the Metaverse, big banking enters the sandbox, and ask the question “Are consumers reaching their limits with inflation?”. ASOTU is now the only Dealer Owned Media Publisher in Automotive ASOTU Investor Brian Kramer is about to execute the first Metaverse Auto transaction in Naples Florida HSBC enters “the sandbox” Bought a plot and will be focused on sports, and gaming SAND token jumped 11% on the news JP Morgan entered last month also in Decentraland Expect $8T metaverse value in China alone Toyota cuts April’s production schedule by 150,000 to be more realistic with expectations “By doing this, we will establish healthy workplace environments that place the highest priority on safety and quality, rather than exceeding the capacities of facilities, pushing people to their limits, and making do through overtime work,” Toyota, the world’s largest automaker, said. Fed Raised rates .25, stocks surged and retreated a bit in this morning’s futures Inflation price hikes reaching the limits of shopper willingness to keep spending Macy’s tried to raise prices on mattresses and shoppers pushed back Bella Dahl, clothing brand raised prices on t-shirts and then rolled it back as sales fell. Chief brand officer, Steven Millman said there was a revolt. If we go any higher, we’ll do half the sales. Retail sales are up 17.7% but mostly due to inflation pricing 43% of consumers surveyed say they will be delaying purchasing if prices go up any more Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier
S1 E120 · Wed, March 16, 2022
Auto Chips and Dips, Starbucks Power Sips, I’ll Raise You One Quarter Point
Shoot us a Text. Today we are full of motion. Big surprise. We get into how new car supply is keeping the lifeline active; how Starbucks and Volvo are partnering to beta test a new charging network concept, and other macro trends sure to affect our micro lives. Volvo is partnering with Starbucks to test charging stations Up to 60 ChargePoint DC fast charging stations 15 locations over 1350 miles from Denver to Starbucks HQ in Seattle Volvo owners get free or discounted charges Speaking of Starbucks, EO Kevin Johnson is retiring after five years on the job. Howard Schultz will return to the Captain’s chair to the company he built. Schultz will serve as interim CEO as the company searches for a new CEO. This is the third time he returned as CEO. His salary will be $1 Johnson saw shares rise 50% during his tenure Shares up 5% Ford Cutting Features like rear seat heating and climate control to keep the production line moving. Fed expected to raise rates .25 pts today Stocks surge amidst news Anyone can go startup mode…incl Stellantis Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E119 · Tue, March 15, 2022
Oil Bouncing Like An EQ, VW Moving Manufacturing, Musk Challenges Putin to a Fight
Shoot us a Text. In our first studio podcast in a week, the reunion is real as we try (and fail) to cover everything there is to cover. We give it a solid swing as we talk through everything from oil prices to manufacturing, to Apple and the NFL. We also recount some underreported NADA stories and check in on Kyle’s new baby girl. Oil drops below $100 a barrel NADA Names Carmen Hinton of Carter Myers Automotive’s Valley Subaru as Winner of 5th Annual Women Driving Auto Retail Video Contest $1000 plus registration to the 2023 NADA Show Apple signs deal with MLB and is positioning for potential NFL deal, competing w Amazon Has 200B on hand Will buy 49% stake in NFL Media and NFL Sunday ticket rights Volkswagen shifts more manufacturing to US and China amidst European conflict Predicts a drag in commodities through 2026 Wiring harnesses are a key contributor to current issues CEO Herbert Diess says he does not believe China will invade Taiwan Inside talk from make meetings: Inventory will still be dragging through 2024 Musk challenges Putin to ‘single combat’ Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity HASHTAGS: #automotivenews #automotiveindustry #nada2022 #nadashow2022 #retail #ev #tech #asotu Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push B
Mon, March 14, 2022
In The Beginning, There Was A Lockdown, Airport Gate Recording, and Why We Need To Push Back
Shoot us a Text. Saying that today's episode is an anomaly would be an understatement. Paul is delayed in an airport, Kyle's wife just had a baby, and did we mention we're coming off a 100+ hour week at NADA? Yet, the Push Back must go on! So as Kyle is tucking in his new baby girl and baby-mama, Paul gives a calibrating recount of where the Automotive State of the Union began and where it's going. To all of our new listeners we assure you that you have found your people. Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E118 · Fri, March 11, 2022
NADA Ribbon Cutting, DeLorean Blast From Past, & Shift in EV Buying Process
Shoot us a Text. Last night, the ASOTU Crew got a little crazy at the NADA Welcome Party at Allegiant Stadium. The show goes on today and the show floor is about to open! Kyle Mountsier is joined by Ben Hadley to take a tour around the news coming from around automotive today. Anyone ready for a ride in a time machine? Tesla Price Hike more gentle than Rivian Raw material accessibility is an issue. 20% price increase in 1 yr for Model Y Pre-market is up on hopes of ceasefire talks Russian President Vladimir Putin said that “certain positive shifts” have occurred in the talks. The main event on the economic calendar Friday is the preliminary reading for the University of Michigan consumer confidence survey, expected to nudge higher to a reading of 62 from 61.7 in February. Autonation CEO encourages a shift in the buying process "If we've learned anything from the last two years," Manley said, "what we should have learned is that the traditional thinking around the automotive industry is just not applicable — completely not applicable" in a period of massive change and disruption. Shift to EV will push late adopters to used vehicle purchasing Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E117 · Thu, March 10, 2022
Everyone Talking Crypto, NADA Kicks Off Tonight, The World Needs Friction
Shoot us a Text. All we hear is Archie Eversole circa 2002 about to drop the “ We Ready ” beat this morning. The podcast gets an Auto Genius takeover and we get a bit nerdy about Crypto and Friction before a full day of events in Vegas . Biden signs Executive Order on crypto regulations Crypto industry feedback is positive “The Biden administration’s executive order on digital assets represents a watershed moment for crypto…akin to when the government in the 90s realized the commercial power of the internet.” -Jeremy Allaire CEO of Circle Cion Digital to lead efforts in powering crypto financing & down payments Integrations with retailing tools coming soon Simplifying the transaction Rivian Investors Sue , Stock price down 37% A lesson in friction Transparency without Context = Slipping Context without Transparency = Stalling Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity #automotivenews #automotiveindustry #nada2022 #nadashow2022 #retail #ev #tech #asotu Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E117 · Wed, March 09, 2022
In The Air, GM’s Nickel Defense, Apple’s Announcement, and Nashville SC
Shoot us a Text. Even as the 2022 NADA Show fires up, the world keeps turning (believe it or not). We’re covering GM’s response to the impending nickel shortage, Apple’s new hardware and content announcements, and Nashville SC shows sponsors some Bitcoin latitude. GM says they are confident that Nickel supply chain will remain steady for the next 3-5 years despite Russia/Ukraine conflict Nashville SC is taking Bitcoin only payment from Sponsor Apple had an event announcing: New colors for the iPhone 13 and iPhone 13 Pro. A new iPad Air. The Mac Studio computer with Apple’s new M1 Ultra chip. The new 27-inch Studio Display monitor. Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E116 · Tue, March 08, 2022
Explaining the “why” of the NADA Show, Main Events, Used Cars Dip
Shoot us a Text. Wheels up and ready for tomorrow! Today we break down why the NADA Show is important to the Retail Automotive Industry. We’ll talk about the main events, nuances, and conversations within the conversations. We also talk about the first drop in Used Car prices since last August. Why is the NADA Show important and how is it different from other events like Digital Dealer? Sub communities: OEM’s , ADA’s, International, NADA Show schedule Thursday - Education, JD Power Automotive Summit, AutoNews Retail Forum, Pasch AWA awards, Welcome Reception Friday - Ribbon Cutting / Floor opens, Live Stage, Time Dealer of the Year Award, Evening receptions Saturday - New NADA Chairman, Michael Alford (Marine Chevrolet/ Caddy Trent Buick/GMC/ Caddy in N.C.) installed, then interviewed by Jason Stein, Keynote by Michael Strahan. Evening receptions Sunday - Wrap up, wheels up Our Schedule - Summarize Thursday - Opening Stream, AN Retail Forum, Welcome Reception, AWA Awards Friday - Opening Stream, Ribbon Cutting, Interviews, Dealer of the Year, Evening Stream Saturday - Opening Stream (Big Announcement), Paul Moderating Diversity Discussion at CARS Booth, Kyle/Paul Keynote at VinCue Booth (Dealer/Vendor relationships), Evening Stream In Between: Social media posts, videos, interviews, articles Sunday - Wrap up, wheels up NADA Press Release: Franchised New-Car Dealers Donate $25,000 to Three Square Food Bank of Las Vegas February Used Car Prices saw first fall since August 2.1% NADA Show donates $25k to local food bank Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https:
S1 E115 · Mon, March 07, 2022
Chip Shortage on Mend, Metal Resources Questioned, & Get You Some Gas
Shoot us a Text. This is the time when leaders lead. The news is riddled with talks of conflict, oil prices, and chip shortages. We talk through what it looks like to lead a team when this is what they are experiencing outside of your walls. Also, we are gearing up for NADA Show and hope you join us by following the livestream schedule at ASOTUnada.com . Social Platforms & Netflix out of Russia TikTok bans uploads Russia cuts off Twitter & Facebook Oil at highest since 2008 US avg over $4/gal Talks of Banning Russian oil imports Chip Shortage related inventory issues decline Cuts were lower than expected Russia/Ukraine conflict could have massive impact on EV Supply Metal resources from both countries Rising cost of Lithium: price 2x in 2022 from year end 2021 Russia’s Norilsk Nickel provides 5% of Nickel and 40% of the Palladium and has yet to be sanctioned Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity #automotivenews #automotiveindustry #nada2022 #nadashow2022 #retail #ev #tech #asotu Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E114 · Fri, March 04, 2022
EV Friday: Polestar Autonomous Drone, Rivan Gets Smart, NFTs as War Bonds
Shoot us a Text. We’re leaning in on EV news this Friday as we cover a wide range of drama, reversals, announcements, and anticipations from Rivian, Tesla, Polestar, Honda, and…Sony??? Polestar EV Concept Revealed Comes with its own drone (can follow at speeds up to 56 mph) Aerodynamics a large part of design considerations Rivian reverses decision to hike prices Customer outrage online leads Exec team to change their tune Crypto leading war bonds in Ukraine Raised over £200m On Saturday, the official Twitter account of the Ukraine government posted a message: "Stand with the people of Ukraine. Now accepting cryptocurrency donations. Bitcoin, Ethereum and USDT." Honda partners with Sony to build & sell EVs New company to be formed Starting sales in 2025 Goal to rival other tech companies like Apple in EV space Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity #automotivenews #automotiveindustry #nada2022 #nadashow2022 #retail #ev #tech #asotu Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E113 · Thu, March 03, 2022
Amazon Bricks Brick & Mortar, 3 Ford Sectors, & A New Kind of Investment
Shoot us a Text. Lots of movement in the retail sector today with Amazon bailing on its brick and mortar execution. We also dive a little deeper into Ford’s decision to split ICE and EV business units. Also, a new tech fund which is funded by Dealers. Amazon Says Bye to Bookstores 68 Amazon Books Stores to close Still focused on Brick & Mortar Amazon food & apparel entities Ford split revisited: Why did it ever make sense to have the same people working on both? How could we be (as an industry) doing this inside our stores? Marketing and technology Sales and CX Automotive Ventures DealerFund by Steve Greenfield Multi-rooftop franchise dealers with capacity to embrace new technologies Check out the Auto Intel Report Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity #automotivenews #automotiveindustry #nada2022 #nadashow2022 #retail #ev #tech #asotu Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E112 · Wed, March 02, 2022
The Ace Sunk, Ford Out of Russia, and Selling with Social
Shoot us a Text. Automotive is as fast paced as ever! With new acquisitions, dealers navigating tricky sales pipelines, opportunities across media, and foreign relations all factors, keeping your head up is of utmost importance. We are in rapid fire mode today and that is only half of the excitement we have headed into NADA Show! TradePending Acquires AutoAPR Automotive Ventures DealerFund by Steve Greenfield Multi-rooftop franchise dealers with capacity to embrace new technologies Check out the Auto Intel Report Will dealers push back on Carvana acquisition? Minority Motors Clubhouse room reprise Ford has now suspended ops in Russia 22k vehicles produced there by an affiliate Ford owns 50% stake in manufacturing facility Made 100k donation to Ukraine relief Also announces separate Divisions to run EV production Separate names, leadership structures, and P&Ls Felicity Ace is sunk Took on water when towing began About $438 million worth of goods were aboard the ship, $401 million of which were cars. Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: <a hre
S1 E111 · Tue, March 01, 2022
Automotive History and Making History, Free Car For Blood, The Future of Just In Time
Shoot us a Text. Today we make a concerted effort to bring some of our Automotive Colleagues along in their education of the history of the Auto Industry. How can we know how far we’ve come if we don’t know where we came from? We also tell some positive Dealer stories as well as issue a customer experience warning. A short history of the Automotive Industry from Earl Stewart Positive Dealer Stories What is your name? Eric Hall What dealership is this story about? Lucky blood donor drives away with free red Chevy Classic Fleet & Carter BloodCare host high school pep rally to reveal the winner of a new Chevy Spark and hand over keys. Tell us a little about what this dealership is doing to increase positivity in their organization and/or community. Classic Fleet stepped up as part of the solution for the chronic blood shortage amidst the ongoing pandemic, donating the car to boost donations during one of the most difficult times of year for the community blood supply. Donors were automatically entered in the drawing when they presented to give during the designated time frame. Real-time Russia/Ukraine impact on the Auto Industry Automakers making moves / taking precautions Netflix defying regulations in Russia Will not be running 20 state run channels as a part of subscription Customer experience is the real loser, and you might not even know it: Dealers pushing buyers toward financing maybe a little too hard ? Texas may think so The hits keep coming for Toyota - Just in time production faces another challenge Approx. 13k cars lost steam on production due to a cyberattack It’s back online now Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://w
S1 E110 · Mon, February 28, 2022
What Leadership Looks Like, Elon Brings Internet, Supply Chain Management
Shoot us a Text. Fired up on a Monday as we’re talking about Paul's trip to Waco, TX and the lessons learned from the Magnolia brand experience as and how it applies to the Automotive Industry culture? Also, we are almost to the one week countdown of NADA kickoff. What Leadership (and brand) Looks like The President of Ukraine has won the hearts of the world Elon brings internet to Ukraine The hits keep coming for Toyota Approx. 13k cars lost steam on production due to a cyberattack SWIFT Sanctions Potential impact Tie to global economy Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E109 · Fri, February 25, 2022
Carvana Buys Adesa & GM Patrick Abad of Beaver Toyota Joins Us
Shoot us a Text. We. Have. Thoughts. When Carvana jumps into the dealer space by taking control of one of the largest auction houses in the country, there is no doubt dealers will be pulling out their microscopes on the platform. We also welcome Patrick Abad to the podcast and are talking about how he leans into community and culture at his store. Carvana/KAR Global to Acquire ADESA for $2.2B ADESA US will expand Carvana's annual production by 2M to over 3M 78% of the US population will be within 100 miles of a Carvana inspection and reconditioning center once ADESA's 56 US sites join the fold. Carvana has received financing of up to $3.275B for the purchase and $1B in improvements across the sites. Four thousand five hundred corporate and operation team members will transition once the deal is complete. Beaver Toyota Cumming celebrates local community Trips for local law enforcement Forsythe County business awards Frictions Points in Dealership Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E108 · Thu, February 24, 2022
Russia/Ukraine Conflict, Auto Loans Get Longer, Ford Debuts Ranger Raptor
Shoot us a Text. We have been wondering for a day or so how Charmin did and how many people turned themselves into poop-mojis. With that, we are constantly reminded of the juxtaposition between social trends and political turmoil. Today we welcome back Michael Cirillo to the pod! Russia Invades Ukraine Remember: keep your head up, but be kind Auto Loans extend to 6.5 & 7 yrs according to Experian Report Average used monthly loan up to $488/mo payments Average amount financed up over $4k Average new monthly loan up $65/mo Ford Ranger Raptor debuts 90 second video Spot has a unique spoken word Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E107 · Wed, February 23, 2022
Stellantis Poised for Growth, Porsche May Go IPO, Oil Prices Climbing
Shoot us a Text. We are only 3 weeks away from the largest conference in franchise retail automotive. The ASOTU is gearing up to ride a pirate ship up to the front door and have a ton of fun. Make sure you follow us across social media as we will work to be your eyes/ears on the street if you can’t make it! Stellantis goes 3x in 2021 Shares gained 6% pre-market CFO Richard Palmer states ties to Russia are limited Net profit up to $15.2 billion Porsche may be headed to its IPO Porsche is currently a major driver of VW profits The IPO could provide the cash flow to succeed in EV VW shares jumped amidst the news Oil prices rising amidst Russia/Ukraine tension Prices are at a 7 year high Potential impact on auto sales in low gas mileage vehicles The risk of QR codes One of the benefits of Google Search or direct URL is the security Understand where you are redirected Sign up for the ASOTU Daily Push Back email at https://www.asotu.com/ Listen to other episodes: https://www.asotu.com/media/podcasts Read the most recent Daily Push Back email at: https://www.asotu.com/media/push-back-email Share positive dealer stories: https://www.asotu.com/positivity Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E106 · Tue, February 22, 2022
Twosday ASOTU Style, Cirillo Goes Shopping, & Stick Shift EVs
Shoot us a Text. We are hoping to contribute to the fact that everywhere you look today, someone will be reminding you it is Twosday, 2/2/22 for the last time in 200 years. With Paul on a plane to TX, Kyle is joined by Michael Cirillo, host of The Dealer Playbook podcast and CEO at FlexDealer. Charmin is sending poop-mojis down a river and turning snapchat into a #2 free for all Michael Cirillo, guest host of the pod, has been shopping for a vehicle Lead handling notes Human capacity for interaction The bots are taking over Toyota brings old features to new EVs Miss that old ‘stall’ when you miss your shift? Shifters with torque adjustment Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, February 21, 2022
Used Vehicles on Presidents Day, Speeders Sigh, Kanye Snubs Streaming
Shoot us a Text. We’re welcoming in the most Presidential of Holidays with original insights from Friday’s All Things Used Cars room where some of the most innovative minds on the pre-owned market. We’re also talking about GM’s new insurance product, and Kanye West at it again, breaking what we thought were the norms. Used Vehicle Prices Dropping and what to do about it Listen to the room replay here GM to leverage OnStar to offer insurance based on your personal driving data After pilot program in AZ, now available in 47 states OnStar Insurance will become an estimated $6 billion revenue opportunity by 2030 Kanye Snubs Streaming Listen to other episodes: https://www.asotu.com/media/p Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 18, 2022
Subaru Tops Consumer Reports, Auto CEO on Reddit AMA, Zuck Gives Data Back
Shoot us a Text. It’s been an amazing week of troublemaking with you all so far! Today we lean a bit more in OEM news, but not at the expense of how it connects with culture. From Consumer Reports to Reddit to Meta, everything is on the table for a great Friday discussion. Subaru gets #1 Brand Ranking spot on Consumer Reports 2022 List Moved up 2 places to claim the title Tesla fell 7 spots to 23rd mentioning the “difficult to use steering wheel” VW Automotive CEO, Herber Diess, hosts an AMA on Reddit Zuck is giving back 10 year old info The lawsuit will require Meta to delete all data the suit argues was wrongfully collected. Time travel is back. Well, sort of DeLorean Motor Company set to launch the DeLorean as an EV Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, February 17, 2022
Stop being so complicated, Android Gets Private, Packing Small Biz Owners in a Showroom
Shoot us a Text. Today we learn a lesson or two from a record-breaking Swedish speedskater. We also talk about new privacy initiatives from Google and how they might affect advertising efforts, as well as why a Georgia Auto Dealer has a showroom packed with small business owners. “The Great Resignation” on Women Inspiring Auto in Clubhouse Stop being so complicated. This gold medal speed skater from Sweden released a 65 page training manual that teaches that the simplest insights likely deliver the highest ROI “After recently dominating the 5,000 event -- and breaking a world record in the 10,000 meters -- van der Poel released his 62-page training program. Not just training splits, intervals, exercises, etc., but also his philosophy on training and success. “ Larry Feldman a recruiter in Automotive recently won Pitch Tank Old school simplicity, unusually great results He responds fast, he always answers his phone, he is disarmingly honest Android users getting more privacy Beaver Toyota having 400 small business leaders in its showroom last night Meta employees now called ‘Metamates’ Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.a
S1 E102 · Wed, February 16, 2022
Winner of Super Bowl Ads, Airbnb Is Rocking, Festivals & Conferences
Shoot us a Text. Today we dig into some ASOTU generated insights on everything from service lane tactics from yesterday’s Minority Motors Clubhouse room to an analysis of Google search traffic as a result of Super Bowl EV commercials. We also look at some encouraging trends from the hospitality and entertainment industries and what they could mean for Retail Automotive Dealers. Check out today’s Clubhouse room Automotive Pitch Tank Yesterday’s room REPLAY: Minority Motors , Innovations that WOW in Service Thursday’s room, Women Inspiring Automotive , The Great Resignation Friday’s collab with David Long and All Things Used Cars EV Super Bowl Google results and the power of brand Airbnb has major rebound and solid growth Bookings higher than pre pandemic levels for the first time People already booking summer giving an indicator of retail mindset and willingness to resume normal life Coachella and Stagecoach festivals dropping all restrictions Good news for conference season and all of us at large Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E101 · Tue, February 15, 2022
We Got Stickers, All You Need to Know about LIFO, and EVs Win in Search
Shoot us a Text. Ok really, we want more people in this community, sharing the thoughts and perspectives of industry leading dealers and partners. So we are counting on you to share the podcast and the Daily Push Back email. From EVs to LIFO, we are digging into the automotive industry at a data nerd level today. Show Notes with links: Check out today’s Clubhouse room Minority Motors, Innovations that WOW service Tomorrow’s room, Automotive Pitch Tank Thursday’s room, Women Inspiring Automotive , The Great Resignation Friday’s collab with David Long and All Things Used Cars EV’s were a big winner of the Super Bowl according to organic data from Cars.com 217% average lift on advertiser brand pages 80% increase in EV page views across its site and apps from fans to learn more about the automaker’s EV models Polestar 2 had massive spikes in traffic propelling it to the No. 1 spot on Cars.com’s most-visited list during the game Dealer’s looking for LIFO “It's like the morning after the greatest profit party in automotive history: The room is trashed, everyone's hung over, and an accountant has slipped a six- or seven-figure tax bill under the hotel room door.” "It's a nonissue if you're not on it," said John Hosmer, owner of Hosmer Toyota and Hosmer Honda in Mason City, Iowa. The large publicly traded dealership groups don't use LIFO, and they don't face the same tax situation. NADA petitioned Washington in November and then Congress became involved Rep. Dan Kildee, a Michigan Democrat who led the bipartisan House letter to Yellen with Rep. Jodey Arrington, a Texas Republican Jim Ellis donates over $68k to the Atlanta Children’ Shelter “This donation provides five homeless children with scholarships for one year in our licensed early childhood education program, it nourishes 15 homeless children in our classrooms for an entire school year with daily healthy meals and snacks, and it supports 20 homeless famil
S1 E100 · Mon, February 14, 2022
EPISODE 100 🎉, The Rams Win Super Bowl, & Coinbase Throttles Traffic
Shoot us a Text. Time sure flies when you are having fun (and we have all the fun)! It seems like just yesterday we were recording Ep. 00 - Just Hit Record and now we are here on episode 100 on a holiday the day after the Super Bowl. Thanks to our loyal fans and new followers for listening and giving us feedback every day. We have a smorgasbord of fresh topics today and we look back on the highlights of the ‘Big Game.’ Not just that, but we sent a surprise link as the show was starting to a few of our esteemed contributors and troublemakers. To our delight, Bob Lanham , David Long , Brian Kramer , and Tim Cox all showed up for a wild 100th episode! The Super Bowl was a bit of a nail-biter , and in the end, the LA Rams came away with the victory It was a ‘90s flashback in all its glory. 50 Cent dropped by for a visit. NADA Show announces they are dropping mask mandates for the convention Dealers continuing to race to the public for used vehicle acquisition Ad review: Hot takes on winners and losers Favorite ads Which Automotive Ad landed best Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Fri, February 11, 2022
Arming the Rebels, Hangin with Alex Vetter, and Clubhouse Heating Up
Shoot us a Text. When you get the chance to chat with Alex Vetter, you do…no matter what! On reports of the CARS purchase of Accu-trade, we knew we had to get Alex’s perspective, and he did not disappoint. The Super Bowl is coming, and whether it be cheering for the Bengals or the commercials, we are ready! Yesterday’s Clubhouse room on Female Rivalry got deep Today is All Things Used Cars is going to be All Things NEW Cars w/ David Long Super bowl car commercial preview Big year for Automotive: Toyota, polestar, BMW, Carvana, Kia, Nissan, Vroom, 30 sec Vroom Behind the Scenes, Wallbox Interview w Alex Vetter from the Chicago Car Show Tesla didn’t catch BMW …yet “Experian said in a report this week that BMW had 347,453 new vehicles registered in the U.S. in 2021, while Tesla had 342,412 — a difference of just 5,041 vehicles.” Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Thu, February 10, 2022
Crypto Enters Auto, US Gets Charged Up, Acura Goes Anime
Shoot us a Text. Enjoy and lean into the work, into the process, not the goal. This week we have been obsessed with the work and hope you are too. The energy beginning to build around NADA is palpable, but the ground game of Automotive is rapidly changing daily. TODAY'S Clubhouse room Women Inspiring Automotive CH today an Noon EST 9 pacific Female Rivalry and how to avoid Pitch Tank Winner CionDigital.com Industry first Crypto financing via Crypto pledging The US is charging ahead with a $5b investment in charging stations Will prioritize interstate and other major highways More guidelines being rolled out soon: every 50 miles, no more than 1 mile off highway, at least 600kw total capacity, must be accessible to general public Inflation adjusted to 7.5% annual rate . A four decade high. Of all categories, gasoline, used cars and trucks, and energy are 48%, 36%, 28% Shout Out to Juan Rodriquez , Mullinax Ford of Olympia Sales Manager When moving into his home, rallied his store to serve a UPS driver with a two-year-old daughter in need. Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/a
Wed, February 09, 2022
Keeping Incentives Low, 4.5 Billion Bitcoin Seized by Gov’t, Hyundai/Kia Catching Fire
Shoot us a Text. Today we’re covering the usual wide-shot spanning from Crypto-crime to a rather large Hyundai recall. We also cover one OEM’s plan to keep incentives low as inventory ramps back up. Speaking of Crypto: 3.6 Billion Dollars in Bitcoin seized by Justice Department “Ilya Lichtenstein, 34 years old, and his wife, Heather Morgan, 31, were both arrested without incident Tuesday morning in Manhattan, the department said. They have promoted themselves on social media as entrepreneurs with deep knowledge of tech and a love of travel.” Allegedly stole 120,000 bitcoin from Bitfinex platform. A Hong Kong company Only worth $70M at the time, now $4.5B Ari Redbord, a former senior Treasury Department official says about tracking techniques, “Blockchain is forever” Kia telling 500k owners to park it away from buildings 🔥 Certain models could spontaneously catch fire via the ABS control module having foreign contaminants in them 3 fires reported so far A variety of 2014-2019 vehicles Hyundai 357k Kia 126k vehicles Honda looking to keep incentives low as inventories increase Low incentives are boosting profitability amongst shortages w current inventory as low as 11 days As inventories increase, the automaker wants to work with dealers to find a balance between how much inventory a dealer will hold and how much will be invested in incentives for buyers Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Tue, February 08, 2022
Big acquisition by CARS, ICE On the Way Out, and The Power of Attention
Shoot us a Text. Boomer ingredients are low key trash. Well, according to Mr. Beast anyways. We are talking about ICE and it isn’t about the olympic ski complex constructed in a steel yard . Simon Sinek: “Those with a finite mindset fear surprises. Those with an Infinite Mindset see opportunity in the unexpected.” ASOTU Shop We launched Referral Rewards Today’s Clubhouse: Minority Motors today @ 11am EST w/ Perry Watson III What’s Working, What Isn’t Paul got his Feastables Retail power of attention Brand influence on kids influencing the purchasing decisions of parents Hints of breaking EV and ICE businesses apart from Ford CEO Jim Farley Rhythms of business are very different “Whereas his other models just needed chips in order to be built, production of this spring’s Lightning EV truck is physically constrained by a lack of actual factory capacity.” “Ford would behave like a challenger, he assured, not an incumbent.” SEC is still digging in on Elons 2018 tweets Regarding his tweet about taking the company private Elons attorneys argue the statement was completely truthful Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
Mon, February 07, 2022
Dealer’s Using Blockchain, Waiting On The Sales Process, & Swaggy Monday
Shoot us a Text. This Monday is a little bit better looking that last Monday. Why? We’re so glad you asked! We just launched the new ASOTU Store where you’ll find a fresh collection of Sophisticated Streetwear for Automotive Troublemakers. Have a look around! And as always, we’re in our seats and ready to give you the edge on today’s most relevant issues in Automotive, Retail, and Technology. Peloton (acquisition, stay the course, or out of business?) Among prospective purchasers are Nike and Amazon Shares up 30% amidst talks “BMO Capital Markets analyst Simeon Siegel said he is skeptical of the value that Peloton would bring to any major tech company, or an athletic apparel giant such as Nike, ‘given its comparably small size, faltering demand, and declining engagement.’” Customers still playing the waiting game , and they don’t like it. “Dealership respondents on average said a purchase took 1.8 hours, while consumers on average estimated time spent at 2.1 hours.” “For example, when the sales process was reported to take three hours or longer, 57 percent of dealership respondents said reentering information was a pain point.” German Dealers using Blockchain to process finance transactions Instant verification means eliminating most paper work potentially saving bank fees of up to 1.5% of the transaction Dealers may be able to process financial transactions entirely without the banks involvement AND be more secure When toying with the idea of using blockchain for car financing, one dealer said the thought was “a bit like asking if you should use a laptop for your bookkeeping.” But dealer interest has grown as banks and start-ups have validated the concept. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E94 · Fri, February 04, 2022
Ford & Amazon Post Q4 Earnings, Prime Price Jump, & Hiring Opportunities
Shoot us a Text. We are excited to be at the end of a successful week of daily push back emails! It is a lot of work, but well worth it. We appreciate your feedback and being a part of the community. The end of earnings reports had winners and losers (sorry Meta), and we are here to tell you all about it! Teachers quitting in droves and finding better fits (LETS GO AUTO) Private resignations 550,000 between January and November, federal data show. More than 800,000 resignations in state and local education. Huge opportunity for Automotive Amazon Prime Price Hike is Coming First price hike since 2018 Annual price to go from $119 to $139 Monthly price from $12.99 to $14.99 Earnings reports boost share price Right to repair bill may impact service departments Similar to cell phone and technology repair Warranty claims may not be held to franchise stores Time now to focus on customer service and retention Ford Q4 profit hits 5 year high Rivan investment a primary factor Net gain last year as opposed to a net loss in 2020 Shift to electrification is fueling growth in legacy OEMs Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E93 · Thu, February 03, 2022
Meta Tanks, Crypto Credit Cards, CDKs New Wholesale Platform, and Dealers Rev Up Revitalization
Shoot us a Text. Meta, Paypal get pummeled, while other tech marches on. Meanwhile, we get into the broadening adoption of retail crypto usage as well as hiring opportunities for Auto Dealers amongst a growing pool of resigning teachers. We also share a little positivity spurred on by a Ford Dealer in Kansas. Clubhouse room today: Women Inspiring Automotive w Special Guest Kim Evenson Topic: Walk and Talk: Driving Team Alignment Story about how Kim met Michelle Executive Partner/CMO Advisory for Gartner, Publicly traded advisory firm Go to ASOTU.club Facebook and Paypal take a Beating FB down over 23% in after hours trading Missed earnings but biggest concern is the first decline in daily active users EVER FBs Reality Labs lost 3.3B as it keeps the pedal down on development. Don’t make us send Bob Lanham down there! Crypto-linked Visa card hits 2.5B in its first quarter “People are using their crypto-linked cards to spend in a variety of ways — retail goods and services, restaurants, travel,” Visa CFO Vasant Prabhu told CNBC in a phone interview. There are both crypto credit and crypto debit cards . Dealer in Salina, KS Long McArthur Ford, Donates Shelby Mustang to fund car museum and revitalization: “I’m so happy that we are able to support the Salina community. This community has supported us for over 70 years Leave us a podcast review! Use some keywords like Automotive, Auto Dealers, business, crypto IF YOU HAVE notable stories in auto OR want to break some news…crew@asotu.com Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E92 · Wed, February 02, 2022
2-2-22, A Frunk? Really?, Dealers’ Role In Revitalization
Shoot us a Text. Spend some time on Google recently? Well, so did a lot of people (the $ tells the story). We did too and found some really fun stuff around automotive and even a new chocolate bar with a surprise owner. Groundhog day AND 2-2-22 Pitch Tank by Auto Genius TODAY: ASOTU.club Contestants: AutoLeadStar , Webbuy , Cognition Digital Beaver Toyota Manager and team survive COVID scare: Share more stories like this: asotu.com/positivity Dealer donates vehicle for charitable auction and raises $125k Is it really called a ‘frunk’? Mr. Beast becomes modern day Willy Wonka with Feastables Chocolate Bars “Boomer chocolate ingredient lists are low key trash so MrBeast decided to make his own, without the junk Each bar has a mystery ticket with a variety of prizes, including, you guessed it…a chocolate factory Google beats earnings $75B over $71B $5.5 B from cloud services, 61.2B in ad revenue Executing a 20 to 1 split bringing share price from $2750 to $130 Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E91 · Tue, February 01, 2022
We Did Wordle…So Did NYT, Positive Dealer Stories, & Carvana Raleigh Reopen
Shoot us a Text. Clubhouse is back in action today with Damon Lester and Perry Watson III hosting Minority Motors. We are also partnering with David Long to look around the automotive industry for positive stories of dealers impacting their organizations and communities. Wordle acquired by NYT for low seven-figure price tag Grown to a daily player base of 2.7 million players No accounts, PII, or ads NYT states the game will continue to be free Introducing the best place to share positive dealer stories asotu.com/positivity Carvana back in action in North Carolina ASOTU Clubhouse is back today! 11am EST Minority Motors The Top 3 Issues To Tackle in 2022 Search “Automotive State OT Union” in CH Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for our Daily Push Back email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E90 · Mon, January 31, 2022
Brand New Email Digs, In-Vehicle App Reviews, and NADA Coming REAL Soon
Shoot us a Text. We’re ending January with a full head of steam: There is a new and improved way for Dealers to push back, we have someone to root for in the Superbowl and the potential for 2022 to be a landmark year in automotive is a real and present opportunity. New email format launched today Sign up at asotu.com Rate the email at the bottom to help us make it better Clubhouse rooms all week Send love to our friends digging out Boston just had one of its snowiest days ever on Saturday. Logan International Airport received 23.6 inches of snow in 24 hours, which tied a record from 2003. Central Park in New York got 8.3 inches, Islip, Long Island, got 24.7, and other parts of Eastern MA got more than 30. Bengals & Rams to the Superbowl JD Power Survey Reveals Uphill Battle for In-Vehicle Apps 40% say they use an app ½ of the time Apps were third-most problematic feature vehicle owners cited in a J.D. Power survey last year Among the 32 brands benchmarked in the study, the top-performing
S1 E89 · Fri, January 28, 2022
Big Storm Brewing, Toyota Tops Global Sales, & SpaceX Weekly Launches
Shoot us a Text. Headed into the weekend with a big storm coming the way of parts of New England. Joe Rogan also shared some pics of the new cyber truck and it is more impressive in real life! Big winter storm coming up the east coast: 1-2 feet in some parts of New England with a foot possible from Maryland up. Sales manager in Georgia off ventilator and doing great Toyota Tops Global Sales Credits early stockpiling of microchips and careful management of bottlenecks Topped rival GM in U.S. This is the first time in NINETY YEARS that GM was not at the top “Being number one has never been Toyota’s focus, and we see our sales performance as the collective result of each individual customer’s decision to support our brands,” spokeswoman Shiori Hashimoto said. “Our company’s goal is to be the best brand for safety and quality.” SpaceX going to space one time per week in 2022 “The company is already on a weekly average pace to begin the year, with three successful Falcon 9 launches so far and two more expected before the end of the month.” “In addition to cost savings — the company’s leadership has said reusing rockets can bring launches down to below $30 million each, from a typical $60 million to $90 million price tag — SpaceX reuses rockets as a way to increase its launch rate without significantly increasing production.” Listen to other episodes: https://www.asotu.com/media/podcasts Sign up for the pushback email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E88 · Thu, January 27, 2022
Superbowl NFTs, Hiring Outside Auto, and Tesla Earnings Breakdown
Shoot us a Text. Here are the quick hits and bright spots in automotive today, including unconventional hiring strategies, NFT Superbowl Tickets and the Tesla earnings call. Tesla Earnings 290% YoY 2.4B Profit Cybertruck pushed to 2023 We will produce new models when it increases output, not limits it (due to supply restrictions) - Musk No 25k model coming Superbowl ticket holders will get a Commemorative NFT “This isn’t the league’s first foray into ticket NFTs, but it will definitely be the most high profile.” “The NFL began offering such tokens in November to fans who purchased their tickets for select games through SeatGeek, StubHub, or Ticketmaster. The league distributed a total of 250,000 overall.” Hiring from outside Automotive is a hit “Keyes Hyundai of Mission Hills in Los Angeles is finding sales and customer satisfaction success with its practice of hiring automotive retailing outsiders.” "’What we decided to do is to stop looking at resumes and stop looking for car people,’ Kevin Grant, General Manager, told Automotive News. ‘And let's start hiring for personality.’" Listen to other episodes: https://theautomotivetroublemaker.buzzsprout.com/ Sign up for the pushback email at ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E87 · Wed, January 26, 2022
5 Days of Chips, GM Makes Huge EV Announcement, & EV Batteries from Korea
Shoot us a Text. As fate would have it, the world is full of EV news and we are here to bring you all the facts and feelings about it. We are gearing up for a huge push into February and are looking forward to sharing more time & space with you! Clubhouse next week…sign up GMs Huge EV announcement yesterday $7 billion to convert a factory to make electric pickup trucks and to build a new battery cell plant. 30B through 2025 with $824M in incentives from the state of Michigan GM CEO Mary Barra said the investment would make Michigan “the epicenter of the electric vehicle industry.” Talking Chips Again…and not the potato variety “The report, based on more than 150 responses to a Commerce Department request for information from businesses that produce and use semiconductors, found that the median supply of chips held by manufacturers has dropped from 40 days' worth in 2019 to less than five days' worth last year.” Focusing on the Synergy and not what to start / stop The Korean Battery Brand Push is “We’re not China.” Listen to other episodes: https://theautomotivetroublemaker.buzzsprout.com/ Sign up for the pushback : ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E86 · Tue, January 25, 2022
Flexible Work, ASOTU Clubhouse is Coming Back, & Used Car Forecasts from Ally
Shoot us a Text. We are pumped to get things really rolling with Clubhouse and our emails next week! Get on the list now so you don’t miss a thing. We also look at the impact of foreign relations on the supply chain. Simon Sinek “Too many people ignore opportunities because they only see danger. Entrepreneurs ignore danger because they only see opportunities. “ ASOTU Clubhouse is Coming Back! Ally Forecasts 15% decline in used car prices by EOY Russia - Ukraine could embolden China - Taiwan. Taiwan largest producer of semiconductor chips Workers care more about flexible hours than remote work Ninety-five percent of people surveyed want flexible hours, compared with 78% of workers who want location flexibility, according to a new report from Future Forum, a consortium focused on reimagining the future of work led by Slack Technologies Inc 72% of workers who weren’t happy with their level of flexibility—whether time or location—are likely to seek out a new opportunity in the next year. Listen to other episodes: https://theautomotivetroublemaker.buzzsprout.com/ Sign up for the pushback : ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E85 · Mon, January 24, 2022
Tesla in 10 Min, Crypto Takes A Nosedive, and What We Learned From Football
Shoot us a Text. After a wild weekend for the NFL there are lessons learned and hopes and dreams growing. We also talk about the new venture from TrueCar founder, Scott Painter as well as our thoughts on the recent crypto crash. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E84 · Fri, January 21, 2022
Paul with Leon Bridges Crew, New Vroom Ad, & Google Core Web Vitals Updates
Shoot us a Text. Paul is enjoying some Florida weather and Leon Bridges tunes, but we have some quick hits to run through on Friday! Google to finalize introduction of Core Web Vitals to Desktop Rankings Paul happens upon the Leon Bridges crew Amazon set to open retail clothing store ASOTU Clubhouse rooms set to return Vroom releases potentially controversial Super Bowl ad targeting private sales Listen to other episodes: https://theautomotivetroublemaker.buzzsprout.com/ Sign up for the pushback : ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E83 · Thu, January 20, 2022
Special Guest David Long, More Microchip News, & Learning from Uber Drivers
Shoot us a Text. Paul is on the road so we invited original Troublemaker David Long to join us for a very special edition of the pod. He never misses for a burst of positive energy! Recapping Jonathan Smoke on All Things Used Cars How David Long brings the automotive industry together Thoughts on the continued Microchip shortage here for a while A little learning from some Uber drivers All Things Used Car Room: https://www.clubhouse.com/event/m3yRGgyG Listen to other episodes: https://theautomotivetroublemaker.buzzsprout.com/ Sign up for the pushback : ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E82 · Wed, January 19, 2022
Ford Capitalizes on Rivian Side Hustle, Microsoft Games, and Hiring From Valvoline
Shoot us a Text. Today we talk about customer experience, EV investments paying off, and a game changing gaming acquisition. Paul takes flight on Southwest and survives We met an oil change tech that can change the dynamics of a store Ford makes out on a Rivian investment Microsoft buys Activision in largest deal in gaming Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E81 · Tue, January 18, 2022
Ford’s New Credit Card Machine, High End Flies High, YouTube Millions
Shoot us a Text. On the road again, but still dropping automotive truths from Ford to luxury manufacturers. Ford & Stripe Ink Deal Aimed at E-Commerce High margin vehicles suffered least from chip shortage Mr Beast is highest YouTube earner in 2021 Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E80 · Mon, January 17, 2022
A Dream, Inventory Level Permanence, and the NFL Effect
Shoot us a Text. On MLK Day we recognize dreams are what make big things happen. So whether Crypto, EVs, or low inventory futures are dreams or reality, one thing is for certain: disregarding dreaming and vision casting will plant you firmly in the past. The NFL Playoffs heat up as the Bengals, Bills, 49ers, Bucs and Chiefs advance Crypto and EV commercials rule in weekend spots Honda preparing for long term low inventory solution Listen to other episodes: https://theautomotivetroublemaker.buzzsprout.com/ Sign up for the pushback : ASOTU.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E79 · Fri, January 14, 2022
Explaining ourselves, Ford’s stock bump, Creative Block, and steak lessons
Shoot us a Text. We don’t have time to waste…it's Friday y’all! Kyle and Paul had a nice long 20 hour day yesterday as they traveled in and out of Atlanta. This means a little extra coffee this morning and a whole lot of fresh insights to talk about. In light of several direct interactions with Dealers, OEMs, and Industry Partners over the past week, there has been a little…er, trouble. We want to set the record straight on the true spirit and intentions of troublemaking. Ford crosses $100 billion for the first time as stock jumps (up 77% over the last 6 months) Why do creative minds start to shut down when making ‘car commercials’? A service experience that is worth talking about Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E78 · Thu, January 13, 2022
A Record Breaking Used Car 2021, Tesla’s Get Hacked, and Kanye Fills the Gap
Shoot us a Text. Description: Here’s the heat on a Thursday morning: Tesla gets hacked - but for good reason Apple’s Potential in the Metaverse is Getting Investors Excited Used Vehicles set record in 2021 Kanye launched a new hoodie with Gap Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E77 · Wed, January 12, 2022
CarYay…We mean CarBravo, Lithium Prices Rising & Tom Brady’s Clothing Line
Shoot us a Text. Things are moving at the speed of, well, think of something fast: GM announces their new direct to consumer platform, CarBravo Omicron may lead to world leaders considering COVID endemic More OEM programs with misguided dealer communications Tom Brady has a clothing line, full of everything he wears in post-game interviews Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E76 · Tue, January 11, 2022
It’s Jocko Tuesday, Kyle On A Call With Ford Direct Leadership, and Steve Greenfields 2022 Predictions
Shoot us a Text. "I have never witnessed this kind of energy in all my years of business. This is wild." -Darren Doane: Jocko on Paul’s Clarity Compressed Podcast We are starting up Clubhouse again in February Kyle and friends were on a call with Ford Direct and friends CarNow changes Google Analytics events structure We peruse Steve Greenfield’s 2022 predictions Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E73 · Mon, January 10, 2022
CES Wraps Up, A Dallas Dealer Pushes Back On the Stigma, Massive Gaming Merger
Shoot us a Text. We’re firing Up Automotive Right on Monday Morning: One Dallas Dealer makes another Dealers mishap right There is a MAJOR merger going on in the gaming world CES is over, but the games are just beginning Competition is a good part of life LinkedIn launches Dark Mode for everyone Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E72 · Fri, January 07, 2022
Symptoms and Problems in OEM - Dealer Websites, Rivian Takes A Punch, and One GMs Exemplary Care For His People
Shoot us a Text. Today it’s all about Corporations and Cooperation -A major Ford Direct mishap that riled up Dealership marketing teams -Rivian stock takes a dive after Stellantis and Amazon make an announcement -What comes first, the employee loyalty or operational success. We tell one GMs story Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E71 · Thu, January 06, 2022
Snow In Nashville, GMs EV Swing During CES, Fed Tapers as Airlines Falter
Shoot us a Text. Today Paul and Kyle cover: Kyle braves the Nashville "Blizzard" Quick takes on GMs presentation at CES Yesterday The Fed's plan to Taper Is Crypto the New Leading Indicator? Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E71 · Wed, January 05, 2022
Ford Flies, Toyota Climbs, and South Park Is About To POP
Shoot us a Text. We're going full blast on news today as we cover lots of OEM fun as well as a big pivot for WeWork founder Adam Neuman, a major deal for some major goof-offs and some stolen NFTs. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E70 · Tue, January 04, 2022
Hyundai Kisses Combustion Goodbye, Blackberry Gets Booted, and Making Sense of All Of The Strategies
Shoot us a Text. Today Paul and Kyle get into the implications of Hyundai sunsetting the combustion engine R&D department while they reminisce about Blackberry's relevance, rise and fall. Also discussed is how Dealers can make sense of so many different vendors trying to solve the (seemingly) same problems. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E69 · Mon, January 03, 2022
Kicking Off 2022 With A New Delivery, Talking Ford Pre-Orders, and OEM Subscription Revenue
Shoot us a Text. Today we set the table for 2022. We're drawing a HUGE circle around the Retail Automotive Industry to bring more people into the conversation. We're not just talking about owners and mangers, but sales staff, service writers, lot porters, admin staff, and even the janitor. Why? Because in this rapidly changing environment, it's going to take EVERYONE to align behind the belief that buying a car from a local retailer holds the most potential to deliver the best customer experience. Full Stop. We also get into Ford's pre-order numbers which represent 1 out of 3 new vehicles being sold right now. Paul also rants about the Kia subscription app that left him in the cold while Kyle tries to bring him back to earth. Hey, it's only the first business day of 2022... Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E68 · Fri, December 31, 2021
Reading and Responding to Listener Emails LIVE
Shoot us a Text. Since we promised we would NOT do a year in review, Paul and Kyle decided to read and respond to some emails received from listeners over the last couple of weeks LIVE. We love to year from you! If you are on our email list, you can just hit 'reply' and we'll see it. If you're not on the email list, you can see what all the ruckus is about and join here. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E67 · Thu, December 30, 2021
Talking About Pressing News ONLY, Future CX, and Is TikTok In Our Future
Shoot us a Text. Holding to our pledge NOT to give you yet another 'Year In Review' piece of content, we break down some recent retail interactions we've had and paint a picture of what 2022 could and should be. We also talk about the LACK of news right now (which is a good thing) and what it would be like for ASOTU to be on TikTok. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E66 · Wed, December 29, 2021
Best Christmas Presents, Passing of A Legend, and Big Changes In Dealer Work-Life Balance
Shoot us a Text. With Paul and Kyle BOTH back in the studio the advantages of certain Christmas gifts are bragged on. We also discuss the passing of NFL and cultural icon John Madden, and talk about some very progressive steps in Dealership work-life balance from several Dealers including paternity leave and four day work weeks for sales professionals. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E65 · Tue, December 28, 2021
Top 10 Lists, Futuristic Movies, and The Biggest Week in Auto Retail is ON
Shoot us a Text. We usually talk a bit of news on the show, but today we realized the last week of the year is simply full of looking back over the year. We talk about what would jump into our Top 10 list for Automotive News that didn't make the publisher's list. Also, Paul gives us some insight into how Apple may view the future tech world in a quick recap of Apple TV+'s 'Swan Song.' Wherever you are today, remember the frontlines of franchise auto retail are in full GO mode this week and we hope it is a blast! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E64 · Mon, December 27, 2021
Going Back To The Beginning On A Monday
Shoot us a Text. Today we release the never before heard monologue that was supposed to open last weeks Livestream event. Paul outlines the stark beginnings of ASOTU and Kyle brings it back to what it means to us now. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E63 · Fri, December 24, 2021
Holiday Plans, Spreadsheets, and DINKS with Special Guest Danielle Southwick
Shoot us a Text. Todays episode is a RIOT as Paul's long time EA and ASOTU's administrative back bone, Danielle Southwick joins us in the studio. If you've enjoyed seeing and hearing Paul and Kyle, chances are, Danielle had a lot to do with making it happen. We talk about what the holidays will look like for us and have a LOT of fun making fun of each other...just in time for Christmas. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E62 · Thu, December 23, 2021
The FIRST Retail Auto NFT, Making Time For Thoughtfulness, and Green Room Fires
Shoot us a Text. Today Paul and Kyle go deep on what it was like to launch the first NFT for the Retail Automotive Industry and how to claim one if you were at Monday's livestream. We also get into one of the ideas submitted on the livestream by Savannah Bananas Team Owner, Jesse Cole, Idea-palozza. Finally, we get into the high-value conversations that happen in the Green Room when the cameras are NOT rolling. If you want to make sure you don't miss the next free NFT drop, make sure you sign up for the email list at www.dealerspushingback.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E61 · Wed, December 22, 2021
Dealership Data Having Tangible Value, Alan Haig Hassles Paul On His Outfit, and the EV Voting Machine Fires Up
Shoot us a Text. Today we laugh and learn from a few more highlights from the ASOTU Year End Extravaganza Livestream starting with a surprising conversation about dealership data during the acquisition process. Alan asks Paul where his Christmas Spirit is and we also talk about EV stock stability. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E60 · Tue, December 21, 2021
Recapping Highlights, Waitlist Opportunities, and Leaders Saying the Same Thing
Shoot us a Text. Today we recap yesterday's rowdy livestream which was chock full of insights and laughs. We go over some highlights including how waitlists are leveraged in non-automotive industries, LIFO issues that NADA is working on, and what happens when multiple guests start saying the same thing. If you missed it, you can catch the livestream on the Automotive State of the Union LinkedIn Page. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E59 · Mon, December 20, 2021
It's Showtime, How To Get 20yr Olds In Your Dealership, Spiderman, and Spider-Manchin
Shoot us a Text. This morning it's SHOWTIME as Kyle and Paul are prepping for todays Year End Extravaganza Livestream. There may still be time to register here. We talk about some recent NFT brand plays and boil them down into practical steps on how you, yes YOU, can leverage them to get 20-30 year old demographic traffic into your stores. Finally, we dive into the surprise of the Spiderman opening weekend and the OTHER surprise of EV tax credits being put in the shredder. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E58 · Fri, December 17, 2021
A Rousing Reading of A LinkedIn Post, Toyota Is About To Break A Production Record, and Phone Call Friday is BACK!
Shoot us a Text. We open todays show with this epic LinkedIn post from yesterday, we talk about Toyota opening up beyond full throttle in January with inventory, and jam with Brian Kramer on Phone Call Friday about Starbucks, Unions, and Customer Experience. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E57 · Thu, December 16, 2021
Taking Hand-Raising Ownership, Kyle Hits an OEM Bone, and A Massive Fed Pivot
Shoot us a Text. We're coming in hot from seeing Jocko Willink in Chicago yesterday and you guessed it, its time to talk about some Extreme Ownership. That mentality couldn't be more timely as we talk about Kyle's LinkedIn post that hit an OEM bone yesterday. We also get into the Fed decision to raise rates and what that could mean to the auto industry. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E56 · Wed, December 15, 2021
Refueling in Chicago, Nike Makes A Big Move, and How We Define Crisis
Shoot us a Text. We're on the run today as Paul and Kyle are live from the Hilton at the Chicago Airport at the Refuel, the end of year event put on by Joe Chura of Dealer Inspire and CARS. Today we're talking about how to refresh at the end of the year, a landmark acquisition of a NFT Sneaker company, and Paul's billion dollar idea for the auto industry and pop culture. Don't forget to register for the ASOTU Year End Extravaganza on Monday Dec 20th here. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E55 · Tue, December 14, 2021
A New Auto Show on NBC, Elon's Mixed Review, and The Warehouse Revolution
Shoot us a Text. Today we are packed full of pop culture and big business as we discuss a new sit com, American Auto, that centers around Evs, AI, and OEM while staying in touch with the love of driving. You should check it out! We also give our perspective on Elon Musk being named as Time's 2021 Person of the Year. Finally we get into the implications of warehouse real estate being worth more than an office park. DON'T FORGET to register here for our Year End Livestream happening this Monday, December 20th. We just locked Paul Walser, Chairman of NADA to be our first guest. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E54 · Mon, December 13, 2021
Elon States His Position, Our Thoughts are With KY, and the Year End Extravaganza is ON!
Shoot us a Text. Back in the comfort of our offices, we hit the ground running with a packed episode of news, encouragement, and some shameless self promotion. With the year coming to a close, we want to challenge you to continue to keep your head up and feet grounded. The work we put in today will project us to success tomorrow. Don't forget to register for the ASOTU Year End Extravaganza and get it on your team's calendar! https://www.dealerspushingback.com/extravaganza Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E53 · Fri, December 10, 2021
NAMAD Connections, Competing in a National Landscape, and Starbucks Goes Union
Shoot us a Text. Our week of travel is almost complete, so phone call Friday is on with Kyle calling Paul. We are extremely encouraged by the NAMAD community and encourage you to get involved however you can. Lithia opens the hood on their plans for Driveway as they expand and acquire stores. The Year End Extravaganza is shaping up and you are not going to want to miss this first-of-its-kind live stream! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E52 · Thu, December 09, 2021
Toys 'R' Us Leaning on Entertainment, GM With a Dealer Roadmap to Fleet EV, and NAMAD Throws a Party
Shoot us a Text. Paul and Kyle's week of travel is nearing an end, but we can't stop, won't stop brining you podcasts and insights, even from the airport! We discuss the rebirth of Toys 'R' Us and their focus on a model of entertainment, and even NFTs of giraffes! Don't forget to register for the ASOTU Year End Extravaganza at https://www.dealerspushingback.com/extravaganza! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E51 · Wed, December 08, 2021
No Coffee in Austin, Ships Ahoy, and Getting Beneath the Leadership Surface
Shoot us a Text. Following a management training for a client, Kyle and Paul are in Austin, Texas ... but not in the same place. Paul is speaking at the MRAA Conference (NADA for boats, basically) and Kyle is boots on the ground in some dealerships. They talk about the value of leadership trust and how it impacts operational realities. Paul also is disgruntled about a ridiculous time for coffee shops to open. REGISTRATION for the ASOTU Year End Extravaganza is LIVE: Check it out here! http://www.dealerspushingback.com/extravaganza Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E50 · Tue, December 07, 2021
Guest Host Tim Cox, Gratitude, and A Lesson On Leadership & Culture
Shoot us a Text. With Paul on a plane, Tim Cox of CarNow joins Kyle as the first EVER guest host of the pod for the official 50th episode! We talk through the culture curation of an all remote workforce and discover some of the most influential culture leaders in retail automotive. Tim is a great friend of ASOTU and always an encouragement. Don't forget to register for the ASOTU Year End Extravaganza: https://www.dealerspushingback.com/extravaganza Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E49 · Mon, December 06, 2021
EVs Dominating News Headlines, Steve Greenfield Going Weekly, and the Real Dealership Culture Trojan Horse
Shoot us a Text. We were excited to wake up this morning to a new weekly email from Steve Greenfield and Automotive Ventures with all the latest money moves in automotive. It also would not be a look at automotive headlines without a smattering of EV news, though not as bright and shiny as typical. Lastly, we are looking your way, our faithful listeners, to lead the transformation of automotive right where you are at! Here's to Monday! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E48 · Fri, December 03, 2021
The Internal Relationships, Nvidia Gets An FTC Smackdown, and Fancy EV Vans From Mercedes
Shoot us a Text. Today we talk about how to make some relational changes that can lead to better overall performance; the merit of microchip competition, and a fresh statement from Daimler regarding their upscale EV plans. PS: We're also having a livestream event on Dec 20th... sign up here! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E47 · Thu, December 02, 2021
Albert Einstein and His Cast of Troublemakers, Conversations With Your Tribe, and A New Name for Square
Shoot us a Text. Paul gets our wheels turning with a quote from Albert Einstein that we think so accurately describes true troublemakers. We point to a photo of some of the smartest minds in our history that was taken before anyone really knew their name. Lastly, Jack Dorsey has made some bold moves over the past week that we are really excited about. Thanks for listening and sharing. Make sure and head to dealerspushingback.com to stay updated on changes that are coming in the next month to Automotive State of the Union. Square Announcement Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E46 · Wed, December 01, 2021
Kyle Buys Crypto, The First Metaverse Car, and A New Mobility Index
Shoot us a Text. Today is chock full of things that make you go hmmmm. We talk about Kyle's experience buying his first Bitcoin, companies who are buying Metaverse real estate to the tune of millions of dollars, and the addition of a new mobility index in Steve Greefield's latest Auto Intel Report. BTW: Mark your calendar for the ASOTU Year End Extravaganza Livestream happening on Monday Dec 20th from Noon-3pm EST. More details coming soon. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E45 · Tue, November 30, 2021
How Many Emails Did You Get and Ditching the IT Department
Shoot us a Text. Today we get into the pros and cons of a MASSIVE Cyber Monday Push as we talk through what we bought. We also talk through a Wall Street Journal article suggesting the dismantling of IT departments as we know them. Not bad for a Tuesday. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E44 · Mon, November 29, 2021
Full Throttle On Retail Season, Seasonal Ad Vibes, and Our Very First 'Challenge'
Shoot us a Text. Coming off a holiday weekend, we're fired up and ready for the next five weeks of retail season. We talk about what's going on in the broader retail world, give some clues on what vibe advertisers are taking on for the season, and deliver our very first challenge for the industry to participate in. Let's go! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E43 · Fri, November 26, 2021
A History Lesson, Word Tracks with Human Implications, and Resting Your Brand on the Next Sale
Shoot us a Text. Black Friday is not as bright and shiny as you may have once thought, but only Philly natives can truly tell that story. From shoplifting to mass shopping, the shift of the meaning of Black Friday may surprise you! Paul also gives us the surprise and delight moment that shifted his service experience from Wednesday. Check out the real story of Black Friday: https://www.history.com/news/black-friday-thanksgiving-origins-history Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E42 · Thu, November 25, 2021
Special Holiday Episode - A Little Charlie Brown and Our Sincerest Thanks!
Shoot us a Text. We couldn't help but express our thanks in words today. It seemed important to bring Charlie Brown into the mix as well! Wherever you are at, and whatever this holiday looks like to you, we want you to know we are glad you are a part of our extended family. Happy Thanksgiving! And to our Canadian folks, sorry you still have to work today.... Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E41 · Wed, November 24, 2021
Prepping for Thanksgiving, the Power of Social Media, and Service Experience Handoffs
Shoot us a Text. We got everyone together in classic ASOTU fashion yesterday on Clubhouse, and the insights that came out of it were nothing short of impressive. Also, Paul walks us though a stellar service experience that was thwarted by technology drop off from the OEM to the dealer. Clubhouse Room Replay: https://www.clubhouse.com/room/xqBA1W8Z Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E40 · Tue, November 23, 2021
A Breakdancing First Base Coach, How To Look For 'Quick Wins', and The ROI Of Your Desk
Shoot us a Text. It's 23 degrees in Nashville and the first snowy day in Syracuse but Paul and Kyle are both safe and warm in their studios talking about the things you can be doing TODAY improve your business...without spending a single dollar. We also talk about brand development and the addiction to calculating immediate ROI. Also: Join us at 3pm EST TODAY November 23rd for a special Thanksgiving clubhouse room: https://www.clubhouse.com/event/PNo8dbBZ Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E39 · Mon, November 22, 2021
Getting Ready For Awkward Conversations, A Special Conversation Tomorrow, and Naming Rights Being More About Brand Synergy
Shoot us a Text. The Monday of Thanksgiving week can bring a range of emotions from excitement over a beautiful meal to anxiety over potentially awkward conversations. We cut into both of those today. We also talk about the new crypto.com naming of the former "Staples Center" and discuss why innovation is about failing more than succeeding. Finally, we're hosing one big clubhouse room Tuesday the 23rd at 3pm EST and you can join us here! https://www.clubhouse.com/join/automotive-state-ot/cv05GHYo/PNo8dbBZ?utm_medium=email&utm_source=sharpspring&sslid=Mzc2NbCwNDI0MDY3AAA&sseid=MzI2MzM2MTQ0MgIA&jobid=32ed6697-e98a-4522-a0f1-383367c25c34 Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E38 · Fri, November 19, 2021
An Anonymous 43.2M Call, Private Acquisitions To The Moon, and Phone Call Friday
Shoot us a Text. Today we talk about the last minute call that thwarted the peoples DAO to buy a remaining copy of the Constitution, Public acquisitions outpaced private ones by a HUGE margin and it's Phone Call Friday and we got a hold of the, always ready to rock, Dan Moore, President of VistaDash. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E37 · Thu, November 18, 2021
The Public Votes on Automotive (and it ain't pretty), A Constitution For Sale, Who Should Automotive Be Watching
Shoot us a Text. We're back in our studio from a great time at the AAAS summit and are ready to talk about the weight that Wall Street is putting on customer experience. It's HEFTY! We also talk about in-store leadership and the inventory river that is about to be flowing. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E36 · Wed, November 17, 2021
How To Break Through Process To Find the Humans
Shoot us a Text. Today we head back to Nashville and Syracuse (respectively) from what was a great conference. We learned so much about what's going on in the Automotive Industry when it comes to data integrations, marketing, and process. There was no shortage of big announcements. However, what we learned most pointedly, is the need to unite the HUMANS behind all the announcements if we are going to keep moving forward. We give some thoughts on how to do that better from the top to the bottom of your organization. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E35 · Tue, November 16, 2021
A Big Announcement from CarNow and the Way To Take Back Cultural Ground
Shoot us a Text. Its the last day of the AAAS conference and we have Tim Cox as a live guest. Not only will you learn a little something, but you'll definitely laugh a little too. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E34 · Mon, November 15, 2021
Making Trouble with Brian Kramer in Palm Beach on a Monday Just Because We Could
Shoot us a Text. Kyle and Paul are at the AAAS Summit in Palm Beach Florida and learning new things from some of the sharpest minds in the Automotive Industry and beyond. This morning, we convinced Brian Kramer to record a morning show to share some insights and to reveal some of the closed door conversations that happened the day before the conference. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E33 · Fri, November 12, 2021
Best Dealerships To Work For, AAAS, and Brian Pasch on Phone Call Friday
Shoot us a Text. We always bounce a little deeper when the intro music plays on Friday and today is no different. We dive in a bit to the Auto News Best Dealerships To Work For list, talk about the amazing culture of one dealership not on the list, and surprise call Brian Pasch to talk about AAAS this upcoming week. It's too late to attend the live event in Palm Beach, but you can still get virtual tickets here. Finish the week strong! Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E32 · Thu, November 11, 2021
97 Billion, The Lock-down That Started ASOTU, and A Word From Theodore Roosevelt
Shoot us a Text. Today we give our quick thoughts on Rivian's IPO, we talk about the beginnings of ASOTU, and why messing up is one of the most admirable traits with a little help from an epic quote. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E31 · Wed, November 10, 2021
Rivian IPO Today, How Brand Preserves the Best Version of Yourself, and Remembering Who You Are Actually Doing Business With
Shoot us a Text. Today is a big day for EV players as Rivian goes public. We talk about how players like COX Automotive and Ford have Billions to gain and maybe more. We also talk about a revelation Paul had after a client call as well as a reminder to everyone, that even though we play to win...we also play in a manner to remain human. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E30 · Tue, November 09, 2021
Having Your Head Up, Crypto's Big Day, and Picking the Winners In Your Dealership
Shoot us a Text. We want to welcome all the new listeners to the podcast today! It's a great day to make some trouble. Today Kyle and Paul talk through the signs around us that we could easily miss if we aren't paying attention. As an industry, we always talk about wanting to find existing talent within our walls and promoting it, yet we aren't quite sure how to flush it out in any other way than just sales numbers. Kyle and Paul make some suggestions. We also talk about the all time high price of crypto and what it could mean for the future of your store. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E29 · Mon, November 08, 2021
A New Era for ASOTU, Shout Out to A Troublemaker, and EVs Everywhere!
Shoot us a Text. We realize only about 8% of our industry have access to the information necessary to pursue innovation together. What if the technician or the lot porter were the ones coming to leadership with the most innovative ideas? We can't say that we really want inclusion...if we are willing to marginalize so many people from the progressive information that is coming out. So join us. Share this podcast with someone in your store or company. Sign up for the Push Back email here: dealerspushingback.com Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E28 · Fri, November 05, 2021
New Look Coming, Stellantis Privacy Issues, and Tim Cox...well, kind of.
Shoot us a Text. To our already loyal audience, thanks so much for listening so far! On Monday, you will get a fresh new look with the same great content. Thanks to Tim Martell, CEO of Wikimotive, we learned about a big data privacy issue Stellantis if facing with their uConnect app. We can't get enough of Tim Cox (CarNow SVP) and though he didn't answer, we got to talk about a very interesting part of their growing organization. If you haven't signed up for the ASOTU weekly email, you can do that at dealerspushingback.com . Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E27 · Thu, November 04, 2021
Paul In Kentucky, Kyle Takes Us To Data School, and the Ways We Find Good Podcasts
Shoot us a Text. Paul is traveling to Kentucky to spend some time with fellow troublemakers Glenn Lundy, Dave Meltzer, and Brian Benstock. Meanwhile, Kyle puts on a five minute masterclass on Auto Dealership Data and the opportunity it is presenting to those who are willing to understand it. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E26 · Wed, November 03, 2021
A Fresh Soundbite, What's More Interesting Than Elephant Poop, and Defining the Problem
Shoot us a Text. As we're anxiously awaiting the 1000th download of this podcast (only 2 away!) we talk about what Kyle's 5 year old things of the "Dad and Paul Podcast". We also talk about Tesla's backpedal on the Hertz deal, and highlight a brand new segue soundbite submitted by listener, Brian Ortega. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E25 · Tue, November 02, 2021
The Girl Who Lit Up LinkedIn Last Night, Real Mentorship, and Amazon as a Rivian Springboard
Shoot us a Text. Pretty soon, people are going to realize what we've been doing over here and this was never more apparent than this post from Erikka Tiffany Wells on LinkedIn last night . We also talk about those people who just shoot holes in every one else's "thing" to make themselves feel better as well as the fact that Rivian is now positioning itself as "An Amazon Backed Company" Also see Brian Kramer's post from the same ASOTU Event here. Join the ASOTU email list here...you won't regret it. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E24 · Mon, November 01, 2021
Why 'so we had to' is So Important, Open Floor Plans, and Changes Brewin' for ASOTU!
Shoot us a Text. This weekend, Kyle finally caught up to Paul in reading 'The Innovation Stack' by Jim McKelvey. We look at how the insights of that book square up 😜neatly to the ideas presented in Steve Greenfield's monthly intel report . Also, keep an eye out this week and over the next 30 days as we shift the focus and purpose of of ASOTU (Automotive State of the Union)! #assumethecenter Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
S1 E23 · Fri, October 29, 2021
SO Meta, Phone Call Friday, and a Supercomputer That Makes Google Cry
Shoot us a Text. How appropriate to end our week with Facebooks rebrand and a random call to the Head of Automotive for Faceb... uh, Meta, Bob Lanham to get his take. We also talk about the EV tax credit that miiiiggggttt make it through Congress as well as the announcement of a new Chinese Supercomputer. Hosts: Paul J Daly and Kyle Mountsier Get the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email
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