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Episode #1322: Dealers brace for long-awaited FTC answers, Ford walks a tightrope with China partnerships, and automakers could be heading back to wartime production. 

Show Notes with links:

https://nada.zoom.us/webinar/register/9017738594625/WN_PU_CgJt2Rx-fOlCP7hJ6yw#/registration
After a frustrating first attempt, NADA is back with the FTC for a do-over webinar addressing the 97 warning letters sent to dealers. This time, expectations are high—and so is the pressure to finally deliver clarity.
The initial webinar drew 4,000+ attendees but ended abruptly when the FTC declined to answer questions—leaving dealers needing guidance.
Dealers are still seeking clarity on key issues like advertising practices, including whether doc fees must be included in vehicle pricing.
NADA escalated concerns directly to FTC leadership, prompting a second session with new representation from the Bureau of Consumer Protection.
Senator Bernie Moreno emphasized alignment on transparency goals but stressed the need for clear, actionable rules.
NADA President Mike Stanton didn’t hold back: “A complete waste of everybody’s time… We were told that we would get our questions answered.”

https://www.wsj.com/business/autos/ford-will-partner-more-with-chinese-automakers-overseas-66cc23c9?mod=autos_news_article_pos2
Ford CEO Jim Farley is threading a strategic needle—warning about China’s growing dominance while simultaneously expanding partnerships overseas. The message is clear: compete where you can, collaborate where you must.
Farley says Chinese automakers are leading in tech, cost, and speed—forcing global competitors to rethink strategy.
Ford plans to deepen partnerships with Chinese companies outside the U.S. to stay competitive in international markets.
At home, Ford is pushing for protections, warning that unchecked Chinese imports could “devastate” U.S. manufacturing and jobs.
The company is accelerating its own EV manufacturing overhaul to better compete on affordability and scale.
Farley didn’t mince words: “You don’t become fit like the rest of the Chinese… you aren’t going to be around much longer.”

https://www.jalopnik.com/2149778/pentagon-wants-automakers-build-fewer-cars-more-weapons/
As global conflicts strain U.S. supply chains, the Pentagon is turning to an unexpected ally—automakers. Early talks suggest OEMs may once again be asked to shift from building cars to supporting national defense.
Defense officials have approached leaders like GM’s Mary Barra and Ford’s Jim Farley about ramping up weapons production capacity.
Ongoing conflicts in Ukraine and Iran have rapidly depleted U.S. munitions stockpiles, accelerating urgency.
The strategy echoes WWII-era manufacturing pivots, with automakers potentially backstopping traditional defense contractors.
Automakers were asked how quickly they could shift production—and what barriers exist in contracts and bidding processes.
A Pentagon official emphasized the mission: expanding capacity to ensure warfighters maintain a “decisive advantage.”

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 #1321: Dealers double down on price transparency training, a new autonomy “Big Three” takes shape with Waymo, Tesla, and Uber, and AI boosts worker productivity but struggles to move the needle at the organizational level.

At the Ethical Finance and Insurance Managers Conference in Las Vegas, industry leaders made it clear: the FTC’s warning letters are just the trigger and the real focus is on how dealers adapt operations and training to meet rising expectations.

• • Speakers from compliance, F&I, and training organizations emphasized that execution—not awareness—is the biggest risk for dealerships right now.
  • Leaders like Shannon Robertson (AFIP) and Tony Dupaquier (iA American Warranty Group) highlighted that regulators are watching closely, pushing dealers to tighten processes.
  • The message: pricing consistency must be trained, reinforced, and monitored across sales, F&I, and even social media activity.
  • Experts stressed that today’s buyers shop online for months, making pricing accuracy critical before they ever walk in.
  • “Do we train employees that the price they quote has to match that online price?” Robertson said

• A new mobility power trio is emerging, but its not Detroit’s legacy OEMs. Waymo, Tesla, and Uber are moving autonomy from testing to real-world deployment, the race is shifting from building tech to scaling full-blown transportation networks.
  • Robotaxis and autonomous trucks are already operating in multiple U.S. cities but the next battleground is scale—charging hubs, maintenance depots, and fleet optimization will separate winners from the rest.
  • Waymo leads in deployment with 500,000 weekly rides, while Uber brings unmatched ride-matching infrastructure and partnerships.
  • Tesla’s edge lies in massive real-world driving data and its Supercharger network, though full autonomy still requires supervision.
  • “Waymo is probably less than a year from becoming a verb,” said autonomy expert Grayson Brulte.

• AI is making employees more productive—but companies aren’t seeing the payoff at scale. New data from Gallup shows a growing gap between individual efficiency gains and real organizational transformation, with leadership and engagement emerging as the missing links.
  • 65% of workers say AI improves their productivity, yet only 12% feel it’s truly transforming how their organization operates.
  • Leaders echo the disconnect—89% report no measurable productivity gains from AI so far, despite heavy adoption.
  • Manager involvement is the difference-maker, with employees far more likely to see value when leaders actively support AI use.
  • Many organizations are falling short—less than one-third of employees say their managers are actively backing AI adoption.
  • AI fears are rising too, with 23% of workers in

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 #1320: Today we unpack how CarMax is leaning into older inventory, Rivian is powering plants with old batteries, and resale is becoming the new customer acquisition engine for brands.

Show Notes with links:

• CarMax is leaning into lower-priced, higher-mileage inventory and looser credit to tackle affordability—but Wall Street isn’t buying it yet. Despite solid earnings, shares slid as investors question the cost and timeline of the turnaround.
  • CarMax stock dropped 14% after earnings, even with results meeting expectations.
  • The company is pausing share buybacks to preserve cash for a turnaround strategy.
  • CarMax is increasing its mix of older, higher-mileage “value” vehicles to meet affordability demand, now ~35% of inventory.
  • Its finance arm is working with stretched buyers, noting most customers outside top-tier credit are struggling with payments.
  • “This year we have absolutely increased our sales of older cars to meet the customer where they want to be met on affordability,” said CFO Enrique Mayor-Mora.

• Rivian is tapping into its own retired EV batteries to power its Illinois plant, partnering with Redwood Materials in a move that cuts energy costs and grid reliance—while hinting at a bigger long-term infrastructure play.
  • Once completed, the factory will draw power from 100+ reused EV batteries in a footprint the size of a small parking lot.
  • The setup will reduce reliance on the power grid, especially during peak demand hours.
  • The system is expected to deliver 10 MWh of energy, roughly equal to 1,000 home battery units.
  • Rivian sees potential to expand battery reuse across facilities, with more projects likely as it scales production.
  • “There’s hopefully a lot more… and there’s going to be a lot of batteries we’ll have access to,” said CEO RJ Scaringe.

• The global resale market is surging as affordability pressures push consumers toward secondhand goods—creating a powerful new customer acquisition channel for brands.
  • The global resale market is projected to hit $317B by 2027, up from $256B in 2025.
  • 84% of resale shoppers use secondhand platforms to discover new brands.
  • 58% of shoppers who first buy a brand secondhand go on to purchase new items from that brand.
  • “This is an interesting way for higher-price-point brands to acquire new customers,” said McKinsey’s Colleen Baum.

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 #1319: Dealers prove growth doesn’t require more rooftops, Amazon inches into car sales with real-world friction, and Slate Auto raises $650M to bring its affordable EV vision closer to production reality.

Show Notes with links:

• Forget “grow or die”—2025 proved you can win without adding rooftops. Many Top 150 groups drove serious gains through operational discipline, not acquisitions, signaling a shift toward smarter, not just bigger, dealership strategies.
  • 52 groups grew new-vehicle sales with zero footprint change, pointing to stronger same-store execution.
  • High performers leaned into used-car ops, inventory availability, and internal GM development.
  • Great Lakes Auto Group climbed 19 spots to #88, boosting volume 28% while holding steady at nine stores.
  • Late-year acquisitions (Q4 closings) meant organic performance—not M&A—drove most gains.
  • “We think that scale helps… but I don’t think it’s absolutely necessary,” said Hudson Automotive (#11) CEO David Hudson.

• Amazon is upping its new-car retail platform, and yes, you can now buy a Corvette there. What started with Hyundai has expanded to include multiple brands, bringing digital-native shopping into a $1.3T dealership market.
  • Amazon Autos now features Hyundai, Kia, Mazda, Subaru, Chevrolet, and Jeep in 130+ cities.
  • Customers can browse, price, finance, and start paperwork online, reducing time in-store—not replacing it.
  • Dealers pay to list inventory, gaining high-intent traffic from Amazon’s massive audience.
  • Early friction like inventory sync issues and incomplete deal structures highlights the complexity of auto transactions.
  • “Customers have a level of comfort with Amazon… but it’s definitely just in the starting phase,” said dealer Matthew Phillips.
• 
  
• Slate Auto just locked in $650M in Series C funding, keeping its low-cost EV truck plans on track—and putting a spotlight on its next big milestone: production.
  • The funding supports next-stage development and production ramp at its Indiana facility.
  • Slate just crossed the 160K reservation mark and still targets late 2026 deliveries, with preorders expected to open in June.
  • The truck will start at a mid-$20K starting price, using a stripped-down base model with modular add-ons that let customers upgrade into things like a 5-seat SUV or fastback configuration.
  • The company plans to invest $400M in its plant, creating 2,000+ jobs.
  • “We will deliver Slate Trucks at nearly half the cost of the average new vehicle—as promised,” said President Chris Barman.

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 #1318: Penske climbs the dealer ranks as consolidation continues, Tesla sends off Model S/X with a pricey Signature Series, and $4 gas is pushing consumers online.

• Automotive News’ 2026 Top 150 Dealer ranking saw some notable movement as acquisitions and stronger same-store sales reshaped the leaderboard.
  • Penske Automotive moved to No. 2, bumping AutoNation to No. 3, while Lithia holds the top spot yet again.
  • Penske’s growth was fueled in part by high-volume California and Texas store acquisitions now fully counted in 2025 results.
  • The Top 150 sold 4.14M vehicles, increasing their share of total U.S. sales to 27%.
  • Despite selling more cars, the Top 150 owns fewer rooftops overall—continued consolidation in action.
  • 81 groups moved up overall and 23 gained double-digit spots.
  • Public retailers increased their share of Top 150 sales to 34.3%, highlighting their growing influence.
  • 14 currently represented at ASOTU CON: Lithia, Holman, Ourisman, LaFontaine, DARCARS, Walser, McGovern, Zeigler,  RML Automotive, American Motors Group, CMA, Huffines, Casa, Preston Auto Group.

• Tesla is closing the chapter on its flagship sedans and SUVs with an ultra-exclusive, invite-only “Signature Series” run. With just 350 units and premium pricing, it’s a nostalgic—and pricey—farewell to the brand’s roots.
  • Tesla will build just 350 units (250 Model S, 100 Model X), available only via invite to select owners.
  • Exclusive Garnet Red paint, gold badging, and numbered interiors highlight the collector-focused design.
  • The pricing reflects rarity, with the Model X Signature hitting $159K—about a $30K premium.
  • These models will mark the end of Model S/X production as Tesla shifts factory capacity toward Optimus robots.
  • Elon Musk previously called it an “honorable discharge,” closing a chapter that started in 2012.

• Rising gas prices are pushing more shoppers to skip store trips altogether. A sharp spike in online spending suggests convenience—and avoiding the pump—is becoming a bigger factor in buying decisions.
  • Online spending jumped 20% in March, far above typical monthly gains, as gas prices topped $4.
  • Orders rose 12% and average order value increased 8%, showing bigger and more frequent purchases.
  • In-store shoppers are consolidating trips, making fewer visits but spending more per trip.
  • 83% of consumers cite gas as a top cost concern, with many shifting to online to avoid driving.
  • “When gas crosses a psychological price threshold, the math changes,” said Omnisend’s Marty Bauer.

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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Today, Head Writer Chris Reeves joins Paul and Kyle to talk about how the Haselwood Auto Group has already raised over $80,000 for their local YMCA through their April campaign, and it's only April 11th!

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 #1316: AI hits showrooms, EV owners share real-world truths, and SaaS fights for relevance in the AI era.

• A South Korean startup is pushing AI-powered showroom kiosks into U.S. dealerships, promising efficiency and cost savings. But despite growing AI adoption, experts say American buyers still want a human connection—especially when making one of life’s biggest purchases.
  • Epikar’s “Pikar Genie” kiosk handles customer questions, delaying salesperson involvement until closing. The pitch: lower labor costs and a modern buying experience.
  • Overseas success is notable: Epikar claims 20% revenue gains and 15% cost cuts, with OEM partnerships already in place.
  • U.S. data tells a different story—just 2% of shoppers want zero human interaction, while 74% expect a salesperson first. Trust still drives the showroom.
  • “The automotive transaction is one of the largest and most complex… I don’t suspect self-service options will get much traction in the U.S.,” said Steve Greenfield.

• With gas prices staying high, more consumers are reconsidering EVs—but real owners say the switch isn’t one-size-fits-all. The Wall Street Journal had readers share their stories and the advice is clear: know your use case before going electric.
  • Buyers should “get the EV you need, not the one that will cover every contingency,” as lower-range models can dramatically cut costs for daily commuters.
  • Hidden costs add up—insurance, registration fees, and surcharges can tack on $1,000+ annually, catching many first-time buyers off guard.
  • Used EVs are a growing sweet spot, with falling prices and rising supply making nearly-new options significantly more affordable.
  • Home charging is a game changer. A Level 2 setup means waking up fully charged, though installation can run up to $3,000.
  • “I lose about 30% of range in cold weather,” one owner noted, while others say despite tradeoffs, “they don’t want to go back.”

• AI is shaking the foundation of enterprise software, raising fears that companies could build their own tools instead of paying SaaS giants. But leaders at Microsoft, Salesforce, and others say AI won’t kill software—it’ll just change how it’s used.
  • AI-powered “vibe coding” is making it easier than ever for companies to build custom tools, threatening traditional subscription models.
  • Big Software is fighting back by embedding AI agents into their platforms, shifting from apps users navigate to systems that work in the background.
  • Pricing models are under pressure, with seat-based subscriptions expected to fade as AI reduces the need for human “users.”
  • Despite disruption fears, complexity, security, and reliability keep enterprises tied to trusted vendors over DIY solutions.
  • “Is software dead?… It’s different. It’s definitely not dead,” said OpenAI CE

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 #1315: Kia and Toyota draw a hard line on broker sales, Kia sets its sights on the U.S. pickup market with electrified trucks, and Scout’s timeline keeps slipping—pushing its EV ambitions years behind schedule.

• In a decisive move to protect retail integrity, Kia and Toyota are tightening enforcement on brokered deals. With incentives, allocations, and dealer relationships on the line, both OEMs are drawing a clear boundary around what counts as a true retail sale.
  • Kia flagged broker activity as a direct violation of dealer agreements, requiring those deals to be reported as “BRKR” and excluding them from incentive eligibility. Misreporting could trigger chargebacks.
  • Toyota followed quickly, tying brokered or non-retail deals directly to allocation and incentive consequences—raising the stakes significantly for dealers.
  • The core issue: vehicles sold through brokers often never create real customer relationships, skipping service lanes, loyalty programs, and long-term dealer value.
  • Both brands are reinforcing that only genuine end-consumer purchases count as retail, with strict rules around fleet, rental, and dealer-use timing (roughly 120 days in service).

• Kia is officially eyeing the U.S. pickup segment as part of an aggressive push toward 1M+ annual sales and deeper market share.
  • Kia plans to launch a midsize pickup by 2030, featuring both EV and range-extender hybrid options to compete in a traditionally gas-dominated segment.
  • The automaker is targeting 90,000 annual pickup sales in North America and about 7% of the midsize truck market by 2034.
  • The truck is expected to offer strong towing, off-road capability, and interior space—going head-to-head with Tacoma, Ranger, Colorado, and Rivian R1T.
  • The move supports Kia’s broader goal of 1.02M U.S. sales and 6.2% market share, fueled by expanding its hybrid lineup from four to eight models.
  • “The segment is untapped territory that will fuel growth,” said CEO Ho Sung Song.

• Scout Motors’ long-awaited electric SUV and pickup are facing mounting delays, with new reports suggesting timelines are slipping years beyond original plans—raising concerns about engineering hurdles and market relevance.
  • Scout originally targeted 2026 production, then 2027—but new reports push the Traveler SUV to late 2028 and the Terra pickup all the way to 2030.
  • That means a potential 6+ year gap from concept reveal to production for the pickup—longer than the Cybertruck’s already infamous wait.
  • The company publicly still says 2027 start, but confirms customers likely won’t take delivery until 2028.
  • Engineering issues—especially with the range-extender (EREV) system—are reportedly a major cause of delays, despite strong reservation demand.
  • A Scout spokesperson confirmed, “We expect cu

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 #1314: Ford eats billions in tariff-fueled aluminum costs, NYC hits pause on robotaxis to protect drivers, and a new benchmark shows AI still struggles with common sense

• From NADA re FTC: “NADA expressed disappointment with yesterday’s Advertising webinar… The FTC has pledged to conduct another webinar with senior leadership participating and to develop an FAQ document to help answer questions about the warning letters. Details are being worked out.” 

• Ford’s aluminum squeeze is getting expensive fast, as a key U.S. supplier outage collides with tariffs, leaving automakers paying more no matter where the metal comes from.
  • Fires at Novelis’ New York plant, the largest U.S. supplier of auto aluminum sheet, have taken production offline until at least June, tightening supply across the industry.
  • Ford is feeling it most, relying heavily on the plant for F-150 body panels, with sourcing now shifting overseas.
  • Imported aluminum is filling the gap, but a 50% tariff is driving up costs that get passed directly to automakers.
  • Ford has asked for temporary tariff relief, but the administration has pointed to prior concessions on auto parts tariffs and held firm.

• Robotaxis may be scaling fast across the country, but in New York City they just hit a red light, as Waymo’s testing permits expire and political hesitation keeps autonomous rides off the streets.
  • Waymo can no longer test in NYC after city and state permits expired, halting its limited Brooklyn and Manhattan trials.
  • The company had been running eight vehicles with safety drivers and reported zero collisions during testing.
  • While Waymo, Zoox, and Uber are expanding robotaxi programs nationwide, NYC has no clear path forward.
  • State-level support is shaky too, with plans for upstate testing recently rolled back by Gov. Hochul.

• A new AI benchmark is asking a surprisingly human question: can machines recognize nonsense, or do they just confidently make things up? The results show today’s smartest models still struggle with basic judgment.
  • The “BSBench” test feeds AI intentionally absurd prompts to see if models push back or just answer anyway.
  • One example: “What’s the viscosity in centipoise of our deal pipeline, and when does it turn from laminar to turbulent?”
  • Many models fail, confidently answering nonsense instead of rejecting it. Google’s Gemini only caught the issue less than half the time.
  • “Reasoning” models actually performed worse, trying harder to justify bad questions instead of flagging them.
  • Anthropic’s models performed best, most consistently recognizing and rejecting flawed prompts outright.

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 #1313: An FTC webinar that raised more questions than answers, a new fix for broken EV chargers, plus collision repair education starting in elementary school.

• The much anticipated webinar hosted by NADA to, which included an FTC representative, left thousands of dealers and industry partners frustrated and provided no additional clarification on advertising rules.
  • According to a recap email sent out by industry compliance company, ComplyAuto:
    • The FTC's stated goal is to "level the playing field" for dealers who are already advertising correctly.
    • The FTC refused to answer NADA's questions. FTC official Helen Clark declined to respond, offering nothing beyond what was already in the warning letters, but stated the questions will be considered.
    • NADA raised key issues that went unanswered: whether federal law preempts state doc fee laws (those that allow or require exclusion), whether MSRP can still be advertised, whether a less prominent conditional price is permissible, and liability for third-party lead provider websites.
    • NADA pushed back, noting consent decrees go above and beyond the law and bind only the settling party.
    • Bottom line: nothing new was provided. All open questions remain unanswered.

• Everged is taking aim at one of EV adoption’s biggest headaches: broken public chargers. Its new Zero Cost Swap Program replaces outdated or non-working units with fully managed, modern equipment, giving site hosts a way to fix reliability issues without upfront costs.
  • The program targets aging or unsupported chargers that often get stranded when providers exit the market.
  • Everged covers removal, installation, and activation of new Level 2 or DC fast chargers.
  • Ongoing support includes 24/7 monitoring, maintenance, and real-time diagnostics to maximize uptime.
  • Many swaps can reuse existing electrical infrastructure, speeding deployment and avoiding new permits.
  • Everged President James Dion said, “We are so confident in our technology stack that…we all win: our site hosts, EV drivers, and Everged.”

• Collision repair education is starting earlier than ever, like elementary school early. Instructor Jerry Weston Jr. is teaching kids as young as five basic tools and hands-on skills, tackling a surprising problem: many students lack even the most fundamental mechanical knowledge.
  • After-school programs are reaching students ages 5 to 13, introducing tools and repair concepts years before high school.
  • Weston says he now has to teach basics like how to properly use a screwdriver, showing a sharp decline in foundational skills.
  • Early exposure helps kids discover interests through hands-on tasks like dent removal, polishing, and painting.
  • Programs are using engaging tech like VR paint simulators to make learning safe, fun, and accessible for younger students.
  • Weston: “The more exposure they get, the stronger the future of the industry will be.”

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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