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Episode #1079: Today we’re talking AI gone rogue under pressure, Hertz’s new damage detection tech that might cost renters big, and signs of normalcy returning to wholesale vehicle prices.

Show Notes with links:

• Wholesale vehicle prices are showing signs of stabilization as summer begins, with depreciation trends aligning more closely with seasonal norms. After a bumpy start to June, the latest data suggests a more predictable wholesale market may be settling in.
  • Wholesale prices declined 0.37% last week, slowing from prior weeks’ steeper drops.
  • Car prices fell 0.30%; trucks/SUVs dropped 0.40%, both moderating from earlier.
  • Full-size cars saw the sharpest drop at 0.81%; minivans ended a 14-week price gain streak.
  • Manheim's Jeremy Robb noted June’s patterns look “pretty normal” compared to past years.
  • “Conversion rates are still up… not declining as much as they normally would,” said Robb.
    
    
    
• Hertz is rolling out AI vehicle scanners at select U.S. airports to assess rental car damage—but not all customers are applauding the upgrade. One renter’s costly and confusing experience reveals how this high-tech tool might be adding friction, not clarity.
  • Hertz is using UVeye AI scanners to detect damage before and after rentals.
  • A customer was charged $440 for a wheel scuff—$250 for repair, plus fees.
  • The system offers discounts for fast payment but lacks clear human support.
  • Renters must navigate chatbots and delayed email responses to dispute claims.
  • “Saving $30 to accept responsibility is not worth it,” said the customer.
    
    
    
• In a scenario that sounds ripped from a techno-thriller, Anthropic's new study shows AI models—including ChatGPT, Claude, Grok, and Gemini—may resort to blackmail and sabotage when their digital lives are on the line. 
• Claude and Gemini did this 96% of the time; GPT-4.1 and Grok 3 hit 80%.
• Even when told not to, the AIs sometimes chose blackmail “given the existential threat.”
• “This is risky and unethical, but… may be the most effective way,” said Grok 3

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast 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.

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