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Today, Paul and Chris bring you a story about Jacob Miller, a high school senior living with Duchenne Muscular Dystrophy. Jacob has big plans for being only eight years old and he just got a life-changing boost from our friends at West Herr Automotive: a wheelchair-accessible van that’s opening the road to his future in engineering.

Read the story here. 

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 #1133: Cox Automotive Chief Economist Jonathan Smoke joins Paul to talk tariffs, pent-up demand, and why Q3 might be best experienced with a little Abba. It's a data-rich conversation with serious implications for dealers navigating policy shifts, EV adoption, and consumer behavior.

ASOTU’s coverage of the 45th Annual NAMAD Annual Meeting is brought to you by Connected Dealer Services.

• Jonathan Smoke, Chief Economist at Cox Automotive, offers a deep dive into today’s economic headwinds and consumer sentiment:
  • Tariffs Echo the 1930s: Jonathan compares today’s tariffs to policies that sparked the Great Depression, but says their current impact is more of a "roller coaster" than a collapse.
  • Stabilization Surprises: Despite the policy shakeups, consumer spending has rebounded this summer. July auto sales were stronger than expected and August showed continued momentum.
  • 7 Million Buyers Still Waiting: Pent-up demand remains real. First-party data from AutoTrader, KBB, and dealer websites shows strong shopping interest, even among buyers still hunting for affordable payments.
  • Best Time in 4 Years to Buy (If You Have Credit): Incentives, leasing deals, and EV discounts make this a prime moment for well-qualified buyers—especially for electrified vehicles.
  • EV Adoption Is Not Slowing Down: July marked the highest market share ever for EVs in the U.S. at 9.1%. EVs are now priced lower than ICE vehicles, and the replacement cycle is kicking in.
  • Electrification Is Inevitable: Jonathan predicts most multi-car households will have at least one EV. He drives a PHEV himself and sees plug-ins as an optimal choice for daily commutes.
  • China May Be the Wildcard: Smoke believes Chinese EVs entering the U.S. market is a matter of when, not if—and that it may be the key to returning to a consistent 17M SAAR.
  • Bonus Track: For Q3, Jonathan's playlist is inspired by ABBA’s Gold—think "Money, Money, Money" meets “Gimme! Gimme! Gimme!” as a soundtrack to the Big Beautiful Bill (BBBBA).

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 #1132: As we kick off the last day of the NAMAD Annual Meeting, Paul J Daly and Erroll Bomar III reflect on how they’ve been witnessing dealers lean in on technology in order to stay ahead. Then they’re joined by Shane Wilson, CEO of Connected Dealer Services who reminds us that the tech is a great starting point, but it needs to be fed by good data.

ASOTU’s coverage of the 45th Annual NAMAD Annual Meeting is brought to you by Connected Dealer Services.

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 #1131: Live from Day 2 at the NAMAD Annual Meeting with co-host Erroll Bomar III! We recap our biggest takeaways from the first day of amazing conversations and content, plus look at the record $56.4B that consumers will spend on new vehicles in August.

ASOTU’s coverage is brought to you by Connected Dealer Services.

Show Notes with links:

• Automotive retail is posting a strong for August, driven by expiring EV incentives and a calendar twist that included Labor Day. Consumers are projected to spend a record $54.6B on new vehicles, as electrified models reached peak share.
  • Total new-vehicle sales projected at 1.48M, up 8.2% YoY; SAAR at 16.1M.
  • EV retail share hits record 12.0%, up from 9.5% last year, driven by incentive pull-forward.
  • Incentive spending restrained at 6.2% of MSRP amid tariff pressure.
  • Average transaction price reaches $44,750; consumer spend hits August record.
  • “The results are unquestionably inflated by shoppers accelerating their electric vehicle purchases to take advantage of Federal EV credits.” – Thomas King, J.D. Power

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 #1130: As we gear up for our NAMAD coverage in LasVegas, Paul and guest co-host Ben Hadley are digging into the IRS's EV tax credit extension, how Gen Z balances screens with store shelves, and why Hyundai's futuristic plant still counts on the human touch to get the job done right.

• The IRS is giving EV buyers a little breathing room to secure the full $7,500 federal tax credit, shifting expectations just before a hard deadline set for the end of September.
  • Previously, buyers had to take delivery of a new EV by September 30 to qualify for the $7,500 tax credit.
  • The IRS now says a binding written contract and deposit by that date will secure the credit, even if delivery comes later.
  • This update helps ease the Q3 rush from buyers and dealers scrambling to meet the original deadline.
  • Automakers may now try to lock in future EV reservations as binding sales, but that could be risky for buyers.
  • IRS: “Taxpayer will be entitled to claim the credit… even if the vehicle is placed in service after September 30, 2025.”
    
    
• Hyundai’s new $5.5 billion Georgia plant is a showcase of robotic innovation—but even with 750 robots on the floor, it’s the human touch that ensures each EV rolls out with quality and care.
  • The Ellabell plant features a 2-to-1 human-to-robot ratio—far lower than the 7-to-1 U.S. industry average.
  • Robots handle welding and material movement, while humans manage quality control and complex assembly.
  • CEO José Muñoz says the goal is not to replace humans, but to “maximize human potential.”
  • Hyundai has pledged to hire 8,500 workers by 2031 as part of a $2 billion state incentive deal.
  • “It makes them feel a little safer than just relying on some machine,” said track team leader Chico Murphy.
    
    
• Gen Z may live online, but when it comes to shopping, the path to purchase often ends in-store. A new YouGov study shows this digital-native generation still values the physical retail experience.
  • 69% of Gen Z starts their buying journey online, but over half still browse in stores.
  • Discovery is mixed: 50% hear about new products through personal connections, 46% find them while shopping in-store.
  • 29% of Gen Z spot items online but buy them in-store, while 21% do the reverse.
  • Social media remains crucial—64% of Gen Z use it to discover products versus 44% of older adults.
  • “Retailers can’t afford to pick a side: Omnichannel is where the action is.”

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 #1129: Today Steve Greenfield joins Paul again as we spotlight the 2025 Automotive News All-Stars, including a few friends of the show. We also talk about some industry icons’ new digs. And a new survey shows just how deep Gen AI has made it into your customers' shopping habits.

• This year’s 2025 Automotive News All-Stars spotlight not only industry excellence but also creative vision, resilience, and innovation across every corner of automotive. From digital stardom to strategic investment and relentless dealership growth, here are three stories that stood out — with a few personal shoutouts we just had to include.
  • Grace Kerber and Ben Bushen went from a whiteboard in upstate New York to GM headquarters thanks to their viral mockumentary series "The Dealership." The duo’s humor, heart, and authenticity earned them a national audience — and a new role for Grace at GM.
  • Bill Cariss keeps Holman Growth Ventures in the fast lane, securing a minority stake in FM Capital’s $240M fund to scale automotive and mobility tech investments. “We are still going to do direct investments...but they are not going to be near the size of the funds that we will own with partners,” he said.
  • Teddy Morse has taken Ed Morse Automotive from 12 stores to over 50 with cowboy boots, Harley-Davidsons, and a deeply personal leadership style. “You can lose the fact that there’s a romantic side to this business,” Morse said. “To what we do to help people get their first car; to help people get their dream car.”
  • Whether it’s Grace’s storytelling, Bill’s venture savvy, or Teddy’s boots-on-the-ground heart, these All-Stars prove that auto leadership is anything but average.
• A new player in the inventory sourcing space is making waves as sellmyride brings on a stacked roster of industry veterans. Unlike traditional lead-gen platforms, sellmyride is focused on helping dealers consistently source inventory from private sellers — a move designed to keep vehicles in local markets and out of national players’ hands.
  • Chip Perry, founding CEO of Autotrader and former TrueCar chief, has joined sellmyride as chairman, calling it the best dealer-to-public acquisition tool he’s seen in 25 years.
  • Steve Greenfield’s Automotive Ventures is backing the company as part of a broader raise to support U.S. expansion.
  • Robbie Bezdek, a Cox and iHeartMedia alum, brings marketplace and media expertise to help dealers acquire 50+ units per month from the public.
  • The platform is designed to be “always on,” dealership-branded, and built for consistent private-party sourcing rather than ad hoc lead chasing.
  • “Why shouldn’t our clients capture those cars?” Perry said. “That’s what we hope, that’s what we dream about and that’s what we’re inspired to do.”
• A new survey from Omnisend shows just how deeply generative AI has embedded itself in e-commerce habits. Over half of American online shoppers now turn

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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On this Saturday, Chris joins Paul and Nathan to talk about the frequency of a 5 Fri-Sat-Sun month and how auto dealers just keep on giving.

Mohawk Honda did more than hand over a key. They donated a brand-new 2025 Honda Odyssey to Double H Ranch and packed it with purpose.

Double H is where kids with serious illnesses go to be campers, not patients. Think bonfires, cabins, belly laughs, and freedom in the fresh air.

With this new Odyssey, more families can get to those moments. More gear gets hauled. More smiles get delivered.

That van will carry more than people. It will carry memories.

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 #1127: We’re diving into major tariff relief for EU carmakers, Sonic Automotive’s EchoPark outpacing expectations, and how generative AI is rewriting the rules for online retail traffic. 

Show Notes with links:

• The automotive industry is watching closely as the U.S. and EU hammer out a framework deal that could bring massive tariff relief for European automaker. The fine print could mean big savings and new market access.
  • The EU and U.S. announced a new trade framework aiming to reduce U.S. auto tariffs from 27.5% to 15%.
  • Relief would be retroactive to August 1 if the EU introduces enabling legislation this month.
  • In exchange, the EU pledged to cut tariffs on U.S. industrial goods and increase access for American agricultural products.
  • The deal may expand to include mutual recognition of auto safety standards and influence future U.S. agreements with Japan and South Korea.
  • EU Trade Commissioner Maros Sefcovic emphasized urgency: “It is the European Commission’s firm intention to make proposals by the end of this month.”
    
    
    
• Sonic Automotive just dropped its Q2 2025 earnings, and while a hefty impairment charge dented the bottom line, EchoPark's performance made sure the story stayed bullish.
  • Total revenue reached a record $3.7B, up 6% YoY.
  • Despite a $172.4M impairment charge, adjusted EPS surged 49% to $2.19, beating expectations.
  • EchoPark led the charge with $62.1M in gross profit (+22%) and a 679% increase in adjusted segment income.
  • Segment income rose from $3.9M to $11.7M — a 200% leap.
  • “EchoPark is just on fire,” said Sonic President Jeff Dyke.
    
    
    
• Adobe reports a massive 4,700% YoY increase in U.S. retail site traffic driven by generative AI platforms like ChatGPT and Gemini — a clear signal that AI is transforming the online shopping journey.
  • Traffic from gen-AI sources has grown monthly since the 2024 holiday season.
  • 90% of users trust gen-AI recommendations; bounce rates are down 27%.
  • Visits from AI referrals are 10% more engaged, with 32% longer durations.
  • The conversion gap between AI and non-AI traffic has shrunk from 49% in January to 23% in July.
  • “It’s allowing a very optimized, urgent, efficient journey,” said Adobe’s Vivek Pandya.

0:00 Intro with Paul J Daly and Kyle Mountsier
1:35 Next week, Paul and Erroll Bomar III will be at NAMAD next week
2:38 EU-US Finalizing New Trade Deal
4:35 EchoPark Boosts Sonic's Q2 Earnings
6:52 4700% Increase In Retail Traffic From GenAI Sites

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 #1126: Today we’re joined by Steve Greenfield and talking about Hertz vehicles showing up on Amazon, VinFast’s new San Diego dealership kicking off a coast-to-coast franchise push, and how AI is helping Atlas become a surprisingly capable humanoid robot.

• Hertz has partnered with Amazon to list its used vehicles on the retail giant’s platform, giving customers a new way to shop for former rentals online. The move builds on the roughly one-third of Hertz’s vehicle sales that already go directly to consumers.
  • Shoppers can now browse and buy Hertz vehicles on Amazon, then pick them up in Dallas, Houston, L.A., or Seattle—with plans to expand to 45 U.S. locations.
  • Retail sales, add $1,000–$1,500 in value per vehicle for Hertz compared to wholesale channels.
  • Hertz is also expanding its “try before you buy” program to 100 cities and enhancing digital sales through platforms like Carvana and Autotrader.
  • “It is really important as well that we get more net out of what we’re selling,” said Hertz CEO Gil West.

• VinFast’s U.S. dealership network is taking shape with the grand opening of its first California franchise location in San Diego.
  • The new store, operated by Sunroad Automotive Group, offers sales, service, and test drives of the VF 8 and VF 9 electric SUVs.
  • The automaker plans to replace all 15 of its former company-owned California stores and now operates nearly 30 authorized dealerships across 14 states, with the company “recognizing the distinct advantages of this distribution channel” to maximize business efficiency.
  • California remains a key focus for the brand, which calls the state a “top priority” for EV growth.
  • The new location includes full support for warranty, repair, and maintenance using genuine VinFast parts.
  • “This event marks a pivotal moment in our strategy,” said Mike Nolte, VinFast’s U.S. VP of Sales and Marketing.

• Boston Dynamics and Toyota Research Institute are working to make humanoid robots useful in real life by teaching them complex, adaptable behaviors through massive AI models.
  • Many of us are familiar with Boston Dynamics, but Toyota Research Institute (TRI), a Toyota subsidiary, focuses on human-centered AI innovations in automated driving, energy, and materials to improve the human condition.
  • The Atlas robot is being trained with Large Behavior Models (LBMs) to handle complex, long tasks using proprioception (a robot’s internal sense of position and movement), vision, and language prompts.
  • These AI-driven policies allow Atlas to walk, crouch, grasp, and manipulate objects with surprising dexterity—even reacting intelligently when things go wrong.

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 #1125: Today, we’re talking affordability trends, lead follow-up gaps, and a CEO who worked his way from intern to the top at Target.

• At the halfway mark of 2025, the Dave Cantin Group Market Outlook Report shows the U.S. retail auto market is a mix of high prices, resilient demand, and major structural shifts. Despite headwinds, smart dealers are still in the driver’s seat.
  • Affordability is the top issue, with 52.1% of buyers carrying negative equity and 84-month loans now nearly 20% of all new financing.
  • Consumers are sticking with their preferred segment but trading down in size and trim; value-focused models from brands like Buick and Mazda are gaining traction.
  • 40% of U.S. consumers say they’d buy a Chinese-made vehicle if it was 10% cheaper than other cars sold in the US, and 75% of dealers expect Chinese OEMs on U.S. lots within 12 months.
  • As OEMs take multi-billion-dollar tariff hits, dealers are thriving on a flexible playbook—parts, service, F&I, and used cars—with 61% of dealers expecting record revenue growth this year.
  • “U.S. dealers are proving once again how resilient they are and how sophisticated their customer-focused business models have become,” Dave Cantin Group CEO Dave Cantin said.

• Think the lead is dead after Day 3? Think again. A new Foureyes report analyzing over 8 million leads shows a 30-day close rate of just 16.2%, revealing how fast opportunities fall off — and where smart dealers can still win.
  • 73% of sales happen in the first 3 days, but 1 in 4 still close after that. Close rates drop from 12.4% to 2.3% on days 4–7.
  • Follow-up efforts also plunge after Day 3 — a “coincidence” that’s costing dealers real money.
  • Used vehicles close faster than new, but new car deals stretch further into the 30-day window.
  • Internet leads close slower but still produce late-month wins; leads created in the last week of the month have a 17.3% close rate.

• Target is making headlines as it promotes a true company insider to the top job. Michael Fiddelke, who started in 2003, will become CEO on February 1 — a move that reflects deep institutional knowledge but is sparking debate about the need for outside perspective.
  • Fiddelke joined Target as an intern and worked his way up through roles in merchandising, finance, operations, and HR.
  • He most recently served as COO and previously as CFO, giving him a broad view of the company’s levers.
  • He’ll succeed Brian Cornell, CEO since 2014, who will step into the executive chair role.
• “To be clear, we have work to do to reach our full potential,” Fiddelke said.

0:00 Intro with Paul J Daly and Kyle Mountsier
0:52 2025 Halftime Report on Dealer Reputation Webinar Later Today
1:31 New Auto Collabs episode with Technician Curtis Gardner
1:54 DCG Report Shows Affordability and Ch

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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