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Episode #1136: An IRS update that could save EV buyers thousands, how Cadillac is quietly staging a luxury comeback and the deeper impact of AI on software development—and whether vibe-coding is helping or hollowing out the craft.

• The IRS has provided a much-needed clarification that gives EV buyers a path to still claim the federal tax credit—even if their vehicle hasn’t been delivered by the September 30th deadline.
  • Buyers who sign a binding purchase agreement and make a payment by September 30, 2025, can still claim the $7,500 (new) or $4,000 (used) EV tax credit.
  • This clarification resolves confusion around the “placed in service” language, which had been interpreted to mean vehicles had to be delivered before the deadline.
  • Deliveries can now happen after the deadline as long as paperwork and payment are completed beforehand.
  • Dealers must provide a “time of sale report” within three days of vehicle delivery to support the buyer’s claim.
  • The clarification comes as EV demand has surged this summer, with analysts crediting savvy shoppers aiming to lock in the credit before its sunset.
• Cadillac’s electric vehicle momentum is giving the brand a shot at reclaiming its former glory in the luxury segment—this time with plugs instead of prestige grilles.
  • Cadillac’s U.S. sales have risen for 12 straight quarters, with EVs making up about a third of sales in the past two months.
  • That figure far outpaces both the broader industry (6–8%) and even the luxury segment (14%) for EV market share.
  • Most EV buyers are trading in vehicles from Audi, BMW, and Mercedes—brands that have long outshined Cadillac.
  • Even Tesla is losing 1 in 10 trade-ins to the American luxury brand.
  • “They’re now beyond where we expect the industry to be five years from now,” said J.D. Power’s Tyson Jominy. “Success today does not necessarily mean success tomorrow.”
• As AI-assisted vibe coding tools proliferate, developers are grappling with what gets gained—and lost—when code becomes more suggestion than craftsmanship.
  • AI tools now help with everything from debugging to database encryption to entire app scaffolding.
  • While helpful, these tools can also produce bloated, disjointed code without strong editorial guidance.
  • Critics worry that fluency in core principles is eroding, replaced by reliance on “good enough” automation.
  • “It may be the easiest time in history to be a coder,” the author writes, “but it’s perhaps harder than ever to grow into a software engineer.”

0:00 Intro with Kyle Mountsier and Michael Cirillo
1:15 What Kyle and Michael would do with a 2-day work week
2:42 Upcoming ASOTU Edge Webinar with vAuto on Sept 10
3:22 EVs Delivered Post-Sept 30 Can Still Receive Tax Credit
5:59 Cadillac Sales Grow For 12 Straight Quarters
8:25 Vibe Coding Making Coding Easier, But Not Good

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 #1135: Friendly Chevy’s charging park is pulling in revenue and conquest sales, BYD takes a profit hit in China’s price war, and Google’s “Nano Banana” might just beat ChatGPT at the AI image game.

Show Notes with links:

• Back in 2021, Friendly Chevrolet’s Mark Eddins saw a gap in the EV experience—and filled it. With GM rolling out EV standards, he went all-in on a unique charging park open to all EV brands. Today, EVHQ is paying off in brand loyalty, new customers, and revenue.
  • EVHQ opened March 2023 near downtown Dallas with eight 120-kW fast chargers under a canopy, staffed 24/7.
  • It offers a lounge-style experience: movie room, Corvette Cafe, Wi-Fi, play area, dog park—even roadside charging.
  • All EV brands are welcome; a free membership gets 20% off retail charging, and an app is launching soon.
  • Revenue hit $300K in 2024 and is on pace for $400K this year, with over 10,000 users and 1,200 monthly sessions.
  • EV sales at the store more than doubled in 2025 so far.
  • “I wanted to be one of those guys that had something nobody else had,” Eddins said. “It is beyond my wildest dreams, quite frankly.”

• Even as BYD pushes aggressively into overseas markets, the Chinese EV giant is taking heat at home. A brutal domestic price war cut deep into profits last quarter, despite record sales and growing international presence.
  • BYD’s Q2 net profit dropped 30% year-over-year to $891M, even as revenue rose 14%.
  • The company blames “excessive marketing” and fierce price-cutting across China’s EV space.
  • Retail prices in China have fallen 19% over two years, triggering concern from regulators.
  • First-half revenue still jumped 23%, with record new energy vehicle sales.
  • In Europe, BYD’s July registrations hit 13,000+—up 225% year-over-year.

• A new challenger has entered the AI image arena. Google’s “Nano Banana” image generator—recently added to Gemini—might just be the first serious rival to ChatGPT’s viral image dominance. And it's got some surprising strengths.
  • Nano Banana delivers sharper realism, faster generation, and better character consistency.
  • It keeps visual details intact across prompts, and it’s images often look more natural and less AI-generated.
  • Gemini's model also handles real photo uploads better—especially when combining images or changing backgrounds.
  • "If you want something that’s very quick and gets the job done in the most realistic way possible… Gemini’s Nano Banana is the clear winner," wrote one reviewer.

0:00 Intro with Kyle Mountsier and Ben Hadley

1:03 Announcements

1:46 Friendly Chevy's EVHQ Charging Station

6:00 BYD Q2 Profit Drops 30%

10:04 Google's Nano Banana Outperforms

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, 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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