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Episode #1034: Today we dive into a legal showdown brewing in California over Afeela’s sales strategy, Rivian’s new campaign powered by real owners, and Chipotle’s massive burrito giveaway honoring teachers and nurses.

Show Notes with links:

• Just after suing Scout Motors, California dealers are challenging Sony Honda Mobility’s direct-to-consumer model, questioning its legality under state franchise law.
  • The California New Car Dealers Association (CNCDA) is investigating whether Afeela’s direct online sales circumvent state laws designed to protect franchisees.
  • CNCDA President Brian Maas says if SHM is deemed affiliated with Honda, it must legally use franchise dealers to sell vehicles.
  • The group is also reviewing activity at SHM’s pop-up showrooms, concerned they might function as illegal retail outlets.
  • “Our concern would be alleviated if Sony-Honda decided to have franchise dealers,” said Maas.
• 
  
• https://www.autonews.com/rivian/an-rivian-marketing-campaign-0501/
• Rivian is leaning into its loyal community with its first national campaign, turning fan stories into fun, feel-good ads.
  • The “Real Rivian Adventures” campaign uses real owner stories to showcase Rivian’s brand values.
  • The first ad features a kid using an R1T’s outlet to power a lemonade stand blender, styled as a spaghetti western.
  • Created by Mojo Supermarket, the campaign is rolling out across streaming and social platforms.
  • It comes ahead of Rivian’s more affordable R2 crossover launch, expected in 2026 at around $45K.
  • “The more inclusive and collaborative we can be… that really is true to who we are,” said VP of Marketing Denise Cherry.

• Chipotle is giving away 200,000 free burrito e-cards to recognize teachers and healthcare professionals during their national appreciation weeks.
  • 100,000 teachers and 100,000 healthcare workers will be randomly selected to receive free entrée e-cards.
  • Participants must sign up and verify their employment through ID.me to qualify.
  • The giveaway coincides with Teacher Appreciation Week (May 5–9) and National Nurses Week (May 6–12).
  • Chipotle’s Round-Up for Real Change campaign also supports related nonprofits through customer donations.
  • “Teachers and healthcare professionals are such important members of the communities we serve,” said Chris Brandt, chief brand officer

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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

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Episode #1032: Today we break down Trump’s new tariff offsets for U.S. automakers, GM’s massive recall of its flagship V-8, and a heartwarming $50K donation from West Herr’s CEO to support local youth.

Show Notes with links:

• President Trump is throwing automakers a bit of a lifeline on tariffs—but it’s not a free ride. His new executive orders are easing some of the pressure, but only if manufacturers meet some very specific conditions.
  • Automakers who build vehicles in the U.S. can apply for a special reimbursement starting April 3, 2025.
  • That reimbursement is worth 3.75% of the MSRP for the first year, dropping to 2.5% in year two.
  • To qualify for the full break, at least 85% of the vehicle’s parts have to be made in the U.S. or in a country covered by the USMCA.
  • If a vehicle hits 50% U.S. content, the company will only pay tariffs on the remaining 35% instead of the full 50%.
  • Parts themselves are also capped—companies can get reimbursed for components making up to 15% of a vehicle’s value in year one, and 10% in year two.
  • Vehicles and parts must be assembled in the U.S. to qualify, and a new system for applying is expected within 30 days.
  • At a Detroit rally yesterday, President Trump said, “They took in parts from all over the world. I don’t want that. I want them to make their parts here. We gave them a little bit of time before we slaughter them if they don’t do this.”

• In news that hits close to home, General Motors has issued a voluntary recall of 721,000 6.2-liter V-8 engines due to potential engine seizure, affecting pickups and large SUVs built from March 2021 through May 2024.
  • The issue stems from rod bearing damage caused by sediment and crankshafts with improper dimensions and surface finish.
  • Faulty components were supplied by American Axle & Manufacturing and Questum Macimex.
  • Dealers face backlog challenges as each engine swap takes over 22 hours and requires full replacement engines.
  • GM says inspections will begin first; engines that pass will receive 0W-40 oil, a new filter, cap, and owner’s manual update.
  • “The safety and satisfaction of our customers are the highest priorities for the entire GM team,” said spokesman Bill Grotz.

• We’ll end the show with a bright spot: During the Depew-Lancaster Boys & Girls Club’s Spring Fundraiser, West Herr President/CEO Scott Bieler made a surprise $50,000 donation through his family foundation.
  • The gift honored Bethanne Hollis, West Herr’s VP of Variable Ops and a club board member.
  • The donation helps offset major funding losses for the club this year.
  • Funds will directly support local youth programs and services.
  • “We are so lucky to have both of these amazing individuals leading the way,” West Herr stat

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Episode #1031: Today we’re talking about Trump’s possible easing of auto tariffs ahead of a Michigan trip, GM’s courtroom defense over driver data privacy, and why e-commerce might be losing its edge as shoppers crave more fun and surprise.

• As he prepares to visit Michigan for the 100-day mark of his second term, President Trump is signaling potential changes that could ease the auto industry’s tariff burdens.
  • The administration is considering adjustments to tariffs on imported auto parts and may exempt automakers from certain steel and aluminum duties.
  • The policy shift, first reported by the Wall Street Journal, appears aimed at supporting domestic manufacturers and suppliers.
  • Proposed changes would address the “stacking” of tariffs—where multiple levies apply to the same imported vehicle—by potentially eliminating overlapping duties.
  • The potential relief follows a joint letter from major automakers, including GM and Toyota, urging the administration to reconsider.
  • “This deal is a major victory for the president’s trade policy,” said Commerce Secretary Howard Lutnick, “by rewarding companies who manufacture domestically.”

• General Motors is facing a wave of lawsuits accusing the automaker of secretly collecting and selling drivers’ behavioral data—claims GM is now trying to dismiss with a bold new legal argument.
  • The lawsuits began in March 2024, alleging GM, OnStar, and data firms like LexisNexis shared driver behavior data without proper consent.
  • GM discontinued its Smart Driver program in April 2024 and ended partnerships with LexisNexis and Verisk after public backlash.
  • Now, GM argues the data collection didn’t violate privacy because driving behavior on public roads isn’t protected under privacy laws.
  • “Driving data includes vehicle location, routes, braking events, and speed—all occurring on public thoroughfares,” GM said in its dismissal filing.
  • “Roadways are public, and these behaviors are observed by all,” GM stated, citing precedent that public conduct doesn’t carry a reasonable expectation of privacy.

• A new study from Criteo reveals that the digital checkout rush might be fading, with consumers craving the discovery and delight of in-store shopping.
  • More than 75% of consumers say e-commerce is functional—but not fun—with 29% calling it a chore.
  • Shoppers miss the thrill of the unexpected: 36% long for the “surprise finds” that often come in-store.
  • A majority find online shopping overwhelming (78%) and lonely (79%), with only half describing it as enjoyable.
  • While data privacy remains a concern, 43% of consumers are open to sharing data for a more tailored experience.

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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Episode #1030: Today we’re talking about the real hurdles to moving auto production stateside, catching up with Carlos Ghosn’s new life as a leadership coach (and fugitive), and Amazon’s surprising new experiment that lets shoppers stray beyond its walls.

Show Notes with links:

• A quarter of U.S. automotive assembly capacity sat unused at the end of 2024, suggesting opportunity amid the backdrop of President Trump's tariffs. However, shifting production to underutilized plants is far more complicated than it sounds.
  • Toyota, BMW, and Honda used over 80% of their U.S. production capacity, leaving little room for more output.
  • Automakers like Stellantis, GM, Ford, and Nissan have more idle capacity but face logistical and investment hurdles.
  • Stellantis' Warren Truck Plant has just 17% utilization but can't quickly absorb new models without major investment, despite being able to build related pickups and SUVs.
  • Ford’s Flat Rock Assembly Plant could theoretically take on new models like the Mustang Mach-E, but even the fastest transition would still take six months to a year to execute.
  • Sam Fiorani of AutoForecast Solutions said: "The rhetoric that moving assembly of vehicles into open spaces is easy and quick is not accurate."

• Five years after his dramatic escape from Japan, former Nissan and Renault CEO Carlos Ghosn is living a quieter life in Lebanon — but remains an international fugitive still shadowed by legal battles.
  • Ghosn lives in a disputed $20M mansion, running executive bootcamps for midlevel managers at a Lebanese university.
  • Despite legal threats from France and Japan, Lebanon’s refusal to extradite its citizens keeps him out of reach.
  • He still denies all accusations, blaming Nissan insiders for orchestrating his downfall to block a deeper Renault-Nissan alliance.
  • Ghosn remains bullish on globalization, calling recent tariff tensions “a joke” against broader interconnected trends.
  • He criticized the post-split struggles of Nissan and Renault: “Nissan is begging for some financial help, and Renault is back to what it was before 1999 — a small European company.”

• In a surprising pivot from its traditional walled-garden strategy, Amazon is testing a program that lets customers shop directly from third-party brand websites — without leaving its app.
  • Shoppers can either be redirected to brand sites or complete purchases through Amazon’s “Buy for Me” checkout feature.
  • Amazon handles payment transfer securely, while shipping, returns, and customer service stay with the brand.
  • The move allows Amazon to collect deeper shopper data, enhancing ad targeting and product recommendations.
  • Industry experts suggest Amazon is trading short-term sales for long-term insights and stronger ad business.
  • Jason Goldberg of Publicis said: “The bigger share of a custo

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On this Saturday, Chris Reeves bring Daniel Govaer to the show with him to talk about how Leif Johnson in Texas brought together off-road truck owners - Raptors, Broncos and Rangers - to take part in an off-road rally to benefit Make-A-Wish.

You can find out more and donate here: https://www.leifjohnsonford.com/raptor-rally.html

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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Episode #1028: Today we talk about VinFast ditching direct sales for a full franchise model, Slate launching a no-frills EV pickup that’s shaking things up under $20K, and the growing movement toward skills-based hiring over college degrees.

Show Notes with links:

• VinFast is officially out of the direct-to-consumer game in California, shifting gears to focus solely on franchised dealers across the U.S. The pivot comes as the Vietnamese EV maker wrestles with rising costs, sliding U.S. registrations, and mounting losses.
  • VinFast is closing all 15 of its company-owned California showrooms in favor of a full franchise model.
  • The brand currently has 38 dealer locations either open or on the way across 16 states.
  • U.S. EV registrations dipped to just 367 in Jan–Feb 2025, an 18% year-over-year decline.
  • The VF 8 accounted for 321 of those, while the three-row VF 9 saw just 46.
  • The company posted a $3.18B net loss in 2024; despite revenue growth, operating costs surged.

• After months of mystery and speculation, Slate, the American EV startup backed by Jeff Bezos, has made its first big move—introducing an all-electric, highly customizable pickup that ditches luxury frills for practicality and affordability.
  • Slate is taking a “clean slate” approach by skipping high-end trims and focusing on accessibility.
  • It will be built in the U.S., comes with over 100 optional accessories, and starts below $20,000 after federal incentives.
  • The flagship model is modular, converting from a 2-seat pickup to a 5-seat SUV with optional flat-pack kit.
  • The interior is stripped-down with HVAC knobs, crank windows and a universal phone mount—your OS, your way.
  • Specs include a 52–84 kWh battery, 150 kW RWD motor, 8-second 0-60, and up to 240 miles range.
  • Slate will sell directly to consumers with a $50 reservation; first deliveries are slated for Q4 2026.
  • CEO Chris Barman says: “The definition of what’s affordable is broken. Slate exists to put the power back in the hands of customers who have been ignored by the auto industry.”

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Episode #1027: Lithia leans into affordability while breaking records despite tariffs. Carvana boosts its reconditioning game in Colorado. And Chipotle turns up the charm, teaching 3,800 teams to smile their way to better hospitality.

Show Notes with links:

• While tariffs loom over the auto industry, Lithia Motors is leaning into its diversified strategy and breaking financial records. CEO Bryan DeBoer says the dealership giant is uniquely positioned to ride out the storm.
  • Roughly 45% of Lithia’s inventory isn’t impacted by current tariffs, providing a significant buffer.
  • The company posted a record $9.2 billion in Q1 revenue (up 7.2%) and $211.2 million in net income (up 28%).
  • Lithia’s emphasis on affordability, including older used vehicles, has strengthened its market position.
  • With parts prices rising, DeBoer stressed the importance of matching pricing with competitors like Jiffy Lube and AutoZone, while offering both OEM and aftermarket parts.
  • “With tariffs, we sit quite nicely,” said DeBoer, calling Lithia “probably the most diversified and least impacted” of the major retailers.

• Carvana is expanding its operational footprint in a big way, bringing inspection and reconditioning (IRC) services to its Colorado Springs ADESA auction site—marking its eighth national Megasite.
  • The new Megasite in Fountain, CO spans 50 acres. It supports both retail recon and wholesale auction needs and will create 100 new jobs.
  • With added IRC capacity, Carvana can offer more inventory and speed up delivery times for local buyers.
  • This move enhances Carvana’s recon and fulfillment network, bringing vehicles to market more efficiently.
  • “This integration will bring a wider selection of vehicles with quick shipping times to local retail customers, and provide a more robust offering for local wholesale customers,” said Brian Boyd, SVP of Inventory.

• A customer study revealed Chipotle lacked friendliness and cleanliness, especially during peak hours so CEO Scott Boatwright has announced a new hospitality push including smiling staff, cleaner dining areas, and better on-site issue recovery.
  • Every employee is now coached to greet customers with a smile at the tortilla station and end transactions with a heartfelt thank you, reinforcing a culture of warmth without slowing operations.
  • Staff across all 3,800+ restaurants have been trained on “exceptional hospitality” standards.
  • Despite a dip in transactions, Q1 sales were up 6.4% to $2.9 billion—driven by new locations.
  • “The fact is, smiles down the line don’t slow us down,” said Boatwright.

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Episode #1026: California dealers are taking legal action against Scout Motors over its direct-sales model. Elon Musk plans to scale back his government role amid Tesla’s slumping sales. And new code reveals OpenAI may soon integrate Shopify directly into ChatGPT, turning the AI into a full retail assistant.

• The California New Car Dealers Association is going to court over Scout Motors’ retail strategy, saying the VW-owned startup is sidestepping franchise laws and undercutting the state's dealer network.
  • Dealers claim Scout violates California Vehicle Code Section 11713.3, which bars automakers from bypassing franchised dealers if the brand is affiliated with an existing franchise network.
  • A 2024 amendment clarifies that new EV brands under a legacy OEM must sell through franchised dealers if they share ownership.
  • CNCDA argues that VW can’t legally claim Scout is “independent” when it's wholly owned by Volkswagen AG.
  • The association says VW dealers are being unfairly excluded from selling Scout’s high-demand electric SUVs and pickups, and the lawsuit seeks over $35M in fines, plus a full sales halt and deposit freeze in California.
  • “Illegal competition will harm not only dealers but also the communities and car buyers that they serve,” said CNCDA President Brian Maas.

• Elon Musk says he’ll scale back his government work next month and refocus on Tesla, where sales are dropping, margins are thinning, and investors are restless.
  • Musk says the “slog” of setting up the Department of Government Efficiency (DOGE) is mostly done, but still plans to spend 40% of his time on it.
  • Tesla stock jumped 5.5% after Musk’s remarks on an earnings call; shares are still down nearly 50% from their December peak.
  • Tesla’s Q1 revenue missed estimates at $19.34B, with auto revenue down 20% and net profit down 71%.
  • Musk reiterated support for lower tariffs but acknowledged Tesla isn't immune to "macro demand for cars," noting that economic uncertainty leads consumers to "pause on doing a major capital purchase like a car."
  • Tesla is on track for a mid-2025 launch of an affordable EV and a June debut of its Austin-based robotaxi fleet.

• OpenAI is setting the stage for ChatGPT to become a full-fledged shopping assistant, as new code hints at a direct integration with Shopify that could streamline the entire purchase journey—from query to checkout.
  • Code found in ChatGPT’s public web assets includes tags like “buy_now” and “shopify_checkout_url,” suggesting native shopping support.
  • If confirmed, this would allow users to move from query to checkout in seconds—no affiliate links, just direct Shopify-powered transactions.
  • OpenAI’s move mirrors Microsoft’s April launch of the Copilot Merchant Program, which embeds shopping directly into the AI experience.

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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Episode #1025: We cover Nissan’s plan to hold vehicle prices through early June and increase U.S. production in response to tariffs. Plus we examine Tesla’s strategic repositioning of the Cybertruck and how cybercriminals are creating a realistic-looking phishing campaign using Google’s own tools.

Show Notes with links:

• Nissan is staying steady on pricing through June 2 and looking to its underused U.S. factories to soften the blow of auto tariffs. The strategy focuses on affordability and domestic production leverage.
  • Nissan has a 3-month supply of tariff-free vehicles and won’t raise prices yet.
  • The company plans to boost output at Smyrna, TN and Canton, MS plants, all of which operated at half their capacity in 2024.
  • Rogue production will jump by 54% over the next year, adding 60,000 units, while price cuts of $1K on 2025 Rogue and Pathfinder aim to drive demand.
  • Nissan is incentivizing retailers with its April and May dealer volume bonus program, which pays extra cash to stores that meet sales targets.
  • “We count all the cars [toward the sales target], but we only pay on the U.S.-made cars because we want to give [them a] tailwind,” said Nissan Americas Chair Christian Meunier

• Tesla is quietly shifting the Cybertruck's identity from status symbol to workhorse after early hype faded, trucks stockpiled, and political ties turned divisive. The new approach aims to resonate with a more traditional truck-buying audience.
  • Cybertruck deliveries remain under 50,000; demand has sharply declined with sales dropping 50% in Q1.
  • Tesla updated the product page with rugged, utilitarian imagery, aligning with Ford’s F-150 ads.
  • Sales teams report it’s harder to sell the truck to actual truck buyers; its novelty isn’t enough.
  • "They need to advertise durability. It needs to be used and abused, and all of the capabilities that make it a work truck need to be on full display," said Edmunds' Ivan Drury.

• Cybercriminals are exploiting Google’s own “Sites” app to run a phishing campaign that convincingly mimics law enforcement subpoenas and bypasses email authentication safeguards.
  • Emails appear from “[email protected]” and claim law enforcement access to your account.
  • Attackers use Google Sites to create convincing portals that evade DKIM checks.
  • DomainKeys Identified Mail (DKIM) authentication is passed since the emails originate from Google’s own infrastructure.
  • Google has acknowledged the issue and is deploying mitigations while encouraging 2FA and passkeys.

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