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Episode #1085: Today we’re diving into a high-stakes Senate budget bill that could end EV credits early, Hyundai’s record-breaking U.S. sales run, and Cloudflare’s bold move to make AI bots pay to crawl. 

Show Notes with links:

• The Senate passed a budget bill by a razor-thin 51-50 vote, with VP JD Vance breaking the tie. The bill, which moves to the House next, packs major implications for automakers and dealers alike.
  • As we covered yesterday, the current version would kill EV tax credits by Sept. 30, 2025.
  • CAFE penalties for fuel economy non-compliance would be eliminated, gutting enforcement.
  • Car loan interest (up to $10,000/year) could be deducted for certain U.S.-built vehicle purchases from 2025-2028.
  • An earlier AI regulation ban, which might’ve restricted state autonomous vehicle laws, was cut from the final bill.
  • Electrification Coalition: Ending EV credits “would cede control over the future of transportation to China.”

• Hyundai just posted its best-ever U.S. sales performance in the first half of 2025, powered by strong EV momentum and a major new plant in Georgia. The automaker says this is only the beginning.
  • Hyundai sold 439,280 vehicles in H1 2025, a 10% YoY increase—the most since its 1986 U.S. debut.
  • Q2 and June also set new records with 235K+ (+10%) and 70K (+3%) vehicles sold, respectively.
  • The IONIQ 5 remains a top EV performer with 19,092 units sold YTD; IONIQ 9 logged 1,013 units since May.
  • The new Metaplant in Georgia can build 300K vehicles/year—expandable to 500K—with both IONIQ 5 and IONIQ 9 rolling off the line.
  • With leases as low as $179/month and free home chargers on offer, Hyundai is “building momentum with every mile,” said North America CEO Randy Parker.

• Cloudflare is positioning to be the premier AI gatekeeper by blocking AI bots by default for new websites and launching a paywall-style marketplace for AI crawlers.
  • New sites on Cloudflare will automatically block AI bots unless given explicit permission.
  • Their new “Pay per Crawl” lets publishers charge bots for different kinds of data use.
  • Condé Nast, TIME, and The Atlantic are on board after seeing steep traffic drops from AI-generated answers.
  • OpenAI bots reportedly scrape 1,700 times per referral, while Anthropic scrapes 73,000 to one. Google is only 14 per referral
  • “This could split the internet,” one analyst said, noting the potential divide between premium and freely scraped content.

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 #1084: Today we unpack the Senate’s plan to fast-track the end of EV tax credits, the global rush to secure rare earth magnet supply, and how small business owners are battling a new wave of AI-powered scams.

Show Notes with links:

• Congress is fast-tracking the elimination of federal EV tax credits, creating waves across the auto retail and manufacturing sectors. A new Senate bill proposes ending both new and used EV credits by September 30, 2025.
  • The Senate plan accelerates the credit phaseout, bypassing both House and prior Senate timelines.
  • Lucid’s CEO warns the change “would make it very difficult for new players in the market.”
  • The bill also ends penalties for CAFE standard noncompliance, easing burdens on legacy automakers.
  • Dealers are concerned; roughly 140,000 EVs sit on lots.
  • NADA:“If EV tax credits are going to be repealed, NADA urges Congress to include a reasonable transition period.”

• China’s latest export restrictions have flipped the rare earths market on its head—sending automakers scrambling for alternatives and giving non-China suppliers the spotlight.
  • After Beijing tightened exports of key magnet materials in April, Western buyers are now urgently securing non-Chinese supply chains.
  • Neo Performance Materials in Estonia has seen surging demand at a $10–$30/kg premium for non-China magnets.
  • Korean and European firms are also investing in alternative sources, even paying 15–30% more to ensure supply.
  • Industry insiders warn that premiums too high could kill demand; too low, and new suppliers can’t survive.
  • “Customers understand there is a premium… but if that premium gets too big, we’re looking at demand destruction,” said Neo CEO Rahim Suleman.

• Small business owners are facing an alarming new wave of fraud—fueled by generative AI. With tools like ChatGPT and deepfake video tech, scammers can now clone brands, replicate storefronts, and impersonate real people—all with little to no technical skill.
  • One scam targeted knife seller Oishya with a fake giveaway campaign, sending fraudulent offers to 10,000 Instagram followers and duping nearly 100 customers out of shipping fees.
  • A recruiter shared how applicants now use AI avatars to cheat video calls, forcing her to ask for ID and personal questions to confirm they’re real.
  • In another case, an engineering firm lost $25 million after an employee was tricked by AI-generated video replicas of his coworkers, including the CFO.
  • “It’s like whack-a-mole, but the moles are multiplying,” said one cybersecurity executive.
  • “Doing business online gets more necessary and high risk every year,” said Nima Etemadi of Cake Life Shop. “AI is just part of that.”

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 #1083: We’re talking tough trade talk from Trump, Jim Farley’s fiery pitch for industrial self-reliance, and the viral ChatGPT graduation moment that’s sparking serious debates—and wild experiments—in education.

Show Notes with links:

• At the Aspen Ideas Festival, Ford CEO Jim Farley called for bold action to rebuild U.S. industrial strength, warning that the country’s economic security—and even its defense—depends on making essential products at home.
  • Farley backs modest tariffs to help U.S. automakers compete with countries that heavily subsidize manufacturing.
  • He also emphasized blue-collar job growth, urging more focus on skilled trades over white-collar positions.
  • Farley shared about recent three week stoppages at Ford plants caused by a shortage of rare-earth magnets sourced from China, critical to systems like seats and windshield wipers.
  • Farley used the example to push for “industrial independence,” saying supply chain reliance on China is a strategic risk.
  • “What, is Google going to make the tanks?” Farley asked. “We’ve talked about energy independence, now we need industrial independence.”

• In a blunt Fox News interview, President Donald Trump threatened to scrap ongoing trade negotiations with Japan, proposing to impose hefty auto tariffs by simply mailing out unilateral notices.
  • Trump said he may skip further negotiations and assign tariffs directly, calling out Japan’s auto exports.
  • “Dear Mr. Japan, here’s the story,” he quipped, proposing the 25% tariff on imported Japanese cars remain.
  • Japan has pushed hard to eliminate the auto tariff but has gained little ground in ongoing talks.

• UCLA student Andre Mai went viral for “flexing” his use of ChatGPT at graduation, but it spotlit the deep confusion around AI in education—just as new, radical models like Alpha School are reshaping what school can even look like.
  • UCLA grad Andre Mai used ChatGPT with his professor’s approval, but reactions revealed how fractured AI policy is in schools.
  • Teachers are stuck between enabling learning and policing AI use, often without reliable tools or consistent rules.
  • 90% of college students tried ChatGPT within two months of launch; now, 1 in 4 teens use it regularly.
  • Meanwhile, Alpha School in Austin is pioneering a bold approach: AI tutors handle core subjects in just 2 hours a day.
  • Students spend the rest of the day on real-world skills like financial literacy, survival training, and entrepreneurship.

0:00 Intro with Paul J Daly and Kyle Mountsier
2:13 All Episodes of ASOTU CON Sessions are live now
3:05 Upcoming ASOTU Edge Webinar with Uber for Business
3:28 Jim Farley Argues For Industrial Independence
6:10 Trump Considers Ending Japan Trade Talks
8:04 The Changes AI is Bringing to the Classroom

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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Chris Reeves join Kyle this morning to recap the travel week that Kyle and Paul had, and then to share about how Liza Borches and the Carter Myers Automotive group brought in 12,805 lbs of food in their Cans and Cans Drive.

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 #1081: Today’s episode sounds the alarm on EV shipping risks after a $560M shipwreck, dives into the dealer-driven defense of EV tax credits with Alex Lawrence at the helm, and bids farewell to Microsoft’s iconic Blue Screen of Death.

• The June sinking of the Morning Midas cargo ship—loaded with Chinese EVs—has sparked serious concern across the shipping and auto industries. Estimated losses are pegged at $560 million, but the implications go far deeper.
  • The ship was carrying 3,048 vehicles, including 750 EVs and hybrids, when it caught fire en route to Mexico.
  • It’s the third major EV ship incident in just over three years, bringing total damages from these disasters to nearly $1.8 billion.
  • The fire’s cause remains unknown, but experts say EVs increase the chance of thermal runaway turning into catastrophe.
  • “This is a huge cost, and another blaring warning claxon to the industry,” said AEG CEO Patrick Anderson, pointing to the growing frequency of these incidents.
  • Calls are growing for stricter EV shipping protocols—better fire detection, increased vehicle spacing, and limits on how many EVs can be transported per vessel.

• A coalition of 19 dealers including Carmax, Carvana, and Utah’s EV Auto is urging the Senate to reconsider abrupt EV tax credit rollbacks. At the center of the push is Alex Lawrence, who’s making a strong case for used EV affordability.
  • Lawrence says converting the credit into a down payment changed everything for middle-class buyers.
  • He argues that without it, many families couldn’t qualify for financing or reliable transportation.
  • Though confident in EV Auto’s future, he warns a sudden end “would disrupt the used car market,” calling for a multi-year phase-out instead.
  • The letter emphasized the vital role of the used EV rebate as “a bridge” for working-class Americans.
  • At ASOTU Con last month, Alex quipped “I didn't realize when I got into the car business five and a half years ago I was getting into politics. But boy, did I ever.”

• Microsoft is officially phasing out one of the most recognizable (and dreaded) elements of the Windows experience: the Blue Screen of Death. After four decades, Windows crashes are getting a new look—and a new name.
  • The classic BSOD will now become the “Black Screen of Death” in an upcoming Windows 11 update.
  • The redesign ditches the frowny face and QR code in favor of a cleaner, more focused layout.
  • The new format will show the stop code and faulty driver right on screen, simplifying diagnosis for IT teams.
  • The update is part of broader efforts to boost Windows 11 stability, especially after last year’s CrowdStrike-related crash wave.
  • “This is really an attempt on clarity and providing better information so we can fix it faster.” says David Weston, Microsoft’s VP of Enterprise and OS Secur

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 #1080: Today we’re talking about winners - how Roger Penske was honored with the Automotive News Centennial Award, how 14 states have won back $5B in EV charging funs and how Meta and Anthropic both won copyright lawsuits.

Show Notes with links:

• Auto and racing icon Roger Penske received the Automotive News Centennial Award, and shows no signs of slowing down despite being 88. He reflected on six decades of building a business empire by putting people first.
  • He credits a coin from his father inscribed “Effort equals results” as a lifelong guiding principle.
  • Penske said focusing on people over products is key, calling it the “secret sauce” behind building an organization with 74,000 employees.
  • Nearly all leadership growth at Penske is internal—95% of management moves are promotions.
  • He raised concerns over the future of the dealer franchise model, warning that direct-to-consumer shifts could undermine the system if not addressed individually.
  • He described Elon Musk as a great industry disrupter saying ““Musk came in here and did an amazing job. He turned the industry on its head.””

• A federal judge in Seattle has temporarily blocked the Trump administration from axing billions in EV charging funds to 14 states, ruling that the states are likely to win their case.
  • The Biden-era $5B EV charger program was frozen in February, with state plans rescinded.
  • Judge Tana Lin ruled that withholding the funds likely violated federal law, harming states that invested in infrastructure expecting federal support.
  • The injunction gives the Trump administration seven days to appeal.

• Two federal judges delivered back-to-back wins for AI developers this week, siding with Anthropic and Meta in copyright lawsuits brought by authors. While both rulings support “fair use” in AI training, the door remains open for future legal challenges.
  • In the Anthropic case, Judge Alsup ruled the company could legally train AI on physical books it bought and digitized, calling it “transformative — spectacularly so.”
  • He drew the line at pirated content, saying a separate trial will determine damages for “millions” of unauthorized books stored by Anthropic.
  • Meta also secured a summary judgment, with Judge Chhabria stating that plaintiffs “made the wrong arguments” — not that Meta’s actions were fully lawful.
  • The judges dismissed claims that AI models like Claude and LLaMA meaningfully harm book markets or replicate texts at scale.
  • Judge Alsup added: “The Authors’ complaint is no different than if they complained that training schoolchildren to write well would result in an explosion of competing works.”

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 #1079: Today we’re talking AI gone rogue under pressure, Hertz’s new damage detection tech that might cost renters big, and signs of normalcy returning to wholesale vehicle prices.

Show Notes with links:

• Wholesale vehicle prices are showing signs of stabilization as summer begins, with depreciation trends aligning more closely with seasonal norms. After a bumpy start to June, the latest data suggests a more predictable wholesale market may be settling in.
  • Wholesale prices declined 0.37% last week, slowing from prior weeks’ steeper drops.
  • Car prices fell 0.30%; trucks/SUVs dropped 0.40%, both moderating from earlier.
  • Full-size cars saw the sharpest drop at 0.81%; minivans ended a 14-week price gain streak.
  • Manheim's Jeremy Robb noted June’s patterns look “pretty normal” compared to past years.
  • “Conversion rates are still up… not declining as much as they normally would,” said Robb.
    
    
    
• Hertz is rolling out AI vehicle scanners at select U.S. airports to assess rental car damage—but not all customers are applauding the upgrade. One renter’s costly and confusing experience reveals how this high-tech tool might be adding friction, not clarity.
  • Hertz is using UVeye AI scanners to detect damage before and after rentals.
  • A customer was charged $440 for a wheel scuff—$250 for repair, plus fees.
  • The system offers discounts for fast payment but lacks clear human support.
  • Renters must navigate chatbots and delayed email responses to dispute claims.
  • “Saving $30 to accept responsibility is not worth it,” said the customer.
    
    
    
• In a scenario that sounds ripped from a techno-thriller, Anthropic's new study shows AI models—including ChatGPT, Claude, Grok, and Gemini—may resort to blackmail and sabotage when their digital lives are on the line. 
• Claude and Gemini did this 96% of the time; GPT-4.1 and Grok 3 hit 80%.
• Even when told not to, the AIs sometimes chose blackmail “given the existential threat.”
• “This is risky and unethical, but… may be the most effective way,” said Grok 3

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Episode #1078: Today we’re talking stormy shareholder meetings at Nissan, the EV factory tours drawing crowds in China, and the Gen Z men getting caught outsourcing their work to AI.

Show Notes with links:

• Nissan’s new CEO Ivan Espinosa faced intense scrutiny from investors at his first annual shareholders' meeting as he moves forward with a bold restructuring plan and ends Renault’s board influence.
  • Espinosa replaces ousted CEO Makoto Uchida, part of a March leadership overhaul aimed at reviving a struggling Nissan.
  • Longtime partner Renault lost direct influence as its board reps, including Chairman Jean-Dominique Senard, were removed—marking a clear shift toward Nissan independence.
  • Shareholders grilled Espinosa on governance, executive pay, and the automaker’s U.S. and Japan strategy.
  • Nissan plans to cut 20,000 jobs, shut 7 factories, and save ¥500B ($3.46B) by March 2028.
  • It projects a ¥200B ($1.38B) Q1 loss, including ¥450B ($3B) in expected U.S. tariff hits.
  • One attendee described the Q&A as “stormy,” saying Espinosa was “smooth and fluent… but equivocated without substance.”

• EV factory tours have become a cultural sensation in China, with tens of thousands scrambling each month for a glimpse behind the robotic curtain of brands like Xiaomi and Nio.
  • Xiaomi Auto's factory receives over 27,000 applications per night for limited tour slots, offering racetrack test drives and now souvenirs.
  • Nio drew 130,000 visitors last year; several other automakers are jumping on board.
  • What began as three monthly tours at Xiaomi has expanded to weekday and weekend offerings for over 1,100 visitors.
  • Visitors describe vast facilities with “only a handful of workers” as robots handle most of the labor.
  • “It offers a chance to not only see the production line up close, but also experience the human side of the brand,” said analyst Freya Zhang.

• A new survey reveals that while AI boosts Gen Z productivity, a surprising number—especially men—are bending the rules by passing off AI work as their own.
  • 40% of Gen Z men admitted to submitting AI-generated work as their own; only 20% of women did the same.
  • Nearly 1 in 3 Gen Z workers have knowingly broken company policy using AI and 30% say they’ve created fake work with AI to appear more productive.
  • 42% of Gen Z men say they worry AI could replace them at work—compared to just 33% of women.
  • 23% of men said they couldn’t do their job without AI; only 14% of women felt that way.
  • Eva Chan, career expert at Resume Genius, “The concern is workers start outsourcing not just tasks, but their judgment, confidence, and even their voice.”

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Episode #1077: Today we’re talking about Stellantis’ cautious leadership shuffle, Tesla’s Robotaxi rollout with safety monitors in the passenger seat, and how AI is quietly shaping the way we talk—even if we don’t realize it.

• Antonio Filosa officially begins his tenure as Stellantis CEO, opting for continuity over disruption by retaining his North America role and promoting from within—a move that left investors wanting more.
  • Filosa will remain based in Detroit and continue overseeing North America to stabilize performance in Stellantis’ most troubled region.
  • He trimmed direct reports to 16, down from 33 under Tavares, signaling a leaner leadership model.
  • Key appointments include Scott Thiele as head of supply chain and Monica Genovese as head of purchasing, while all 14 brand chiefs—including Jeep, Fiat, and Maserati—stay in place.
  • Stellantis shares are down 10% since his May appointment.
  • Jefferies analysts dryly noted the split role “suggests that revamping Stellantis may not be a full-time job.”

• Tesla has officially launched its Robotaxi pilot in Austin, offering driverless rides to a select group of superfans. While early impressions are mostly positive, the rollout wasn’t without its quirks—or a couple concerning errors.
  • Service is live in a ~30-square-mile geofenced area of South Austin with limited weather, time, and destination constraints.
  • There’s a human “safety monitor” in the passenger seat with emergency controls—and remote teleoperators on standby.
  • Notable fails include one vehicle veering into an oncoming lane mid-turn and another stopping mid-intersection to let out a passenger.
  • Riders must use a separate “Robotaxi” app, distributed via Apple’s TestFlight, but noted seamless syncing of personal Tesla profiles (like music) and a smooth ride experience on par with, or better than, current FSD builds.
  • Content creator Chuck Cook praised the performance: “Quite advanced behavior… a more confident parking job than I’ve personally encountered in a Waymo.”

• As AI tools like ChatGPT increasingly shape our digital interactions, researchers are now tracking how those patterns are bleeding into how we actually talk with some surprising, and maybe unsettling, results.
  • In academic YouTube videos, usage of words like “delve” and “adept” has jumped over 50% since ChatGPT’s release.
  • Spoken language is becoming more structured and emotionally muted—mirroring AI’s formal tone.
  • Researchers warn this shift erodes the authentic signals we use in speech, like stumbles and slang, which build human connection.
  • The influence of “correct” AI-generated English is crowding out regional dialects, affecting who sounds credible in public discourse.
  • “Delve is only the tip of the iceberg,” says Max Planck resea

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Today, Chris Reeves joins Paul and Kyle to talk about how sourcing stories is like sitting by a river with little sailboats going down it. Then they talk about how Shelly Hux from Herrin-Gear Automotive Group wrote in to share how she's been empowered to make a difference in her community and how more dealers can do that at their stories.

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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