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Episode #1033: Today we’re talking Hyundai and Kia’s red-hot April sales streak, Ford’s surprise retreat from a major software project, and why most consumers still aren’t sold on AI or social shopping tools.

Show Notes with links:

• U.S. shoppers are racing to dealerships to beat rising prices from new import tariffs, driving Hyundai and Kia to record April sales as both brands notch their seventh straight month of year-over-year gains.
  • Hyundai U.S. sales jumped 19% in April, while Kia sales rose 14%.
  • EVs and hybrids continue to shine: Hyundai up 25%, Kia up 21%.
  • Industrywide sales were projected to rise as much as 15% in April, though momentum cooled as the month progressed.
  • U.S. new-vehicle inventory dropped to 2.57M units (61-day supply) in mid-April, down from 2.69M (70 days) at the start of April and 2.8M (81 days) a year ago, per Cox Automotive.
  • “Inventory levels have declined substantially over recent weeks, likely pushing vehicle prices higher. The outlook for new-auto sales from here is more troubling,” said Cox Automotive’s Charles Chesbrough.

• Ford has canceled its highly anticipated FNV4 electrical architecture project, once billed as key to competing with EV pioneers like Tesla. The move underscores the uphill battle legacy automakers face in modernizing vehicle software.
  • FNV4 aimed to unify software across gas and electric models, cutting costs and boosting update speed.
  • The project was scrapped due to cost overruns and delays, after contributing to nearly $10B in software and EV losses over two years.
  • CEO Jim Farley admitted Ford's current system relies on code from 150 suppliers—creating major barriers to quality and speed.
  • Ford is shifting focus to a California-based skunkworks team developing affordable EVs and advanced software.
  • “The only strategic advantage any company can have is speed,” said Caresoft Global’s Terry Woychowski.

• New data shows a growing divide in how U.S. consumers view tech-driven shopping. KPMG’s summer 2025 survey suggests widespread hesitation toward AI and social commerce—while Capgemini sees signs of rising adoption, especially among Gen Z.
  • 63% of consumers haven’t used AI shopping tools and don’t plan to, per KPMG; 56% say the same for social shopping.
  • Shoppers say they prefer doing their own research and aren't swayed by online ads—especially when privacy and data usage are involved.
  • In contrast, Capgemini reports nearly 60% of consumers now use generative AI in place of traditional search, and a third shop directly via social media.
  • Gen Z bucks the trend: over half have made purchases via social platforms, and TikTok shoppers spent an average of $708 on the app last year.
  • “The visual nature of fashion makes it a perfect fit for platforms like Instagram and TikTok,” said KPMG’s Sam Ganga, urgin

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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