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We’re almost at the end of another week, and today we’re covering how it seems that the Trump team is getting ready to eliminate the EV tax credit. Plus, GM is working with EV owners in Texas to offer free nighttime EV charging, and how on-the-job training is becoming harder to find.

Show Notes with links:

• The Trump transition team is set to eliminate the $7,500 EV tax credit in an upcoming tax reform, a shift that could hinder the U.S.'s EV progress. Despite Tesla’s reliance on this subsidy, representatives of the company appear supportive of the repeal.
  • Killing the credit aligns with Trump’s campaign pledge to end Biden's "EV mandate."
  • Tesla, though impacted, may benefit as the change would likely harm its competitors more, especially legacy automakers like GM.
  • Energy transition discussions are led by oil magnate Harold Hamm and North Dakota Governor Doug Burgum.
  • Eliminating the subsidy could free up funds to extend Trump’s major tax cuts.
  • The Alliance for Automotive Innovation stressed the importance of credits, calling them "critical to cementing the U.S. as a global leader."

• General Motors is collaborating with Reliant Energy to offer free nighttime charging for Chevy EV owners in Texas. The initiative, aimed at making EV ownership more affordable, leverages renewable energy credits to support sustainable charging.
  • Chevy owners enrolled in Reliant’s EV plan get free charging from 11 PM to 6 AM, offset through monthly bill credits.
  • Users must specify an EV on GM Energy’s Smart Charging Portal to qualify.
  • This promotion is part of a broader trend as automakers like Ford offer perks to attract hesitant EV buyers.
  • GM and Reliant claim charging is renewable, thanks to Renewable Energy Certificates (RECs), though these credits have been criticized for masking fossil fuel use.

• In many companies, new hires and even seasoned workers are left struggling due to inadequate training. With limited mentorship and lack of clear guidance, employees are increasingly expected to "figure it out" alone.
  • High job turnover, hybrid work, and cost-cutting have weakened structured training.
  • Only 50% of Gen Z workers report having mentors, despite 83% valuing it.
  • Less than half of employees feel they fully understand their job expectations, per Gallup.
  • Tech-based training has limitations, while mentorship apps often see low engagement.
  • Kenneth Matos of HiBob warns that cutting training leaves junior employees overwhelmed and managers burnt out.

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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It’s Thursday, and we’re almost halfway through November. Today, we’re talking about a CDK study that says car buying got harder for consumers in October, how Tesla has exhausted its Cybertruck reservation list and OpenAI’s autonomous Operator that’s coming to a computer near you.

Show Notes with links:

• According to a recent CDK Global study, shoppers struggled a bit more in October with finding the right car as inventory disruptions such as stop sales, model turnovers, and natural disasters took a toll on the Ease of Purchase.
  • 87% of buyers reported an easy car-buying experience, down from September’s 89% and August’s record 93%.
  • Only 49% of shoppers could buy their preferred vehicle on the lot, down from 54% in September, with the test-drive ease rate also slipping to 78%—a rare dip below 80%.
  • Complaints about "too many things to choose from" and excessive paperwork led to a slight drop in ease for form completion, falling to 70% in October from 72% in September.
  • The time it took to finalize purchases increased for 32% of buyers, up from 25% in September. Just 15% experienced a quicker purchase process, a significant drop from last month’s 25%.

• Tesla has begun offering Cybertrucks directly from new vehicle inventory, indicating that its once-massive reservation backlog may have dwindled.
  • U.S. buyers can now order and receive a Cybertruck in roughly a week, suggesting Tesla has exhausted its initial backlog.
  • Despite over a million initial reservations, Tesla has only delivered approximately 50,000 Cybertrucks in the United States so far.
  • Changes in the production model, including a higher price and lower range than originally promised, may have deterred some reservation holders.
  • Tesla has expanded Cybertruck deliveries to Mexico and Canada to match rising production capacity.

• OpenAI is set to release a new AI agent, codenamed "Operator," designed to take actions on users' computers, like writing code or booking travel. The tool is expected to launch as a research preview in January.
  • Operator will be available through OpenAI’s API, allowing developers to integrate it into various applications.
  • The tool aligns with an industry trend toward AI agents capable of completing complex, multi-step tasks autonomously.
  • Competitors like Anthropic, Microsoft, and Google are also developing similar agent tools to manage tasks for users.
  • OpenAI’s Sam Altman has hinted at this shift, calling it the next “giant breakthrough” in AI during a recent Reddit AMA.

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Today’s the day when we release More Than Cars episode 4: Mohawk Chevrolet at 1PM! Oh and we’re also talking about Rivian and VW’s finalized joint venture, how the UAW is struggling to gain momentum following last year’s big wins and how Dodge is adjusting its EV and ICE muscle car plans.

Show Notes with links:

• Rivian Automotive and Volkswagen Group have finalized a significant joint venture worth up to $5.8 billion to advance electrical architecture and software for future EVs, utilizing Rivian's current tech.
  • Since the venture was announced in June, VW’s investment in Rivian has grown from an initial $5 billion.
  • Rivian brings its advanced EV technology, while VW contributes its vast manufacturing scale.
  • The initial phase includes deploying Rivian’s system in VW vehicles, launching Rivian’s R2 by 2026 and VW's Scout brand vehicles by 2027.
  • The partnership focuses on electrical architecture and software, not hardware, though Scout Motors CEO Scott Keogh hinted Scout’s EVs will leverage the tech.
  • “By combining complementary expertise, we aim to reduce costs and accelerate new tech,” VW’s Oliver Blume stated.
  • This venture is crucial for Rivian’s financial strategy, as it faced a $1.1 billion Q3 loss amid slowed revenue and production.
• Outspoken UAW President Shawn Fain is facing mounting obstacles in organizing nonunion U.S. factories owned by Toyota, Hyundai, Mercedes, and others amid a shifting political and corporate landscape.
  • Following historic labor deals with the Big 3, Fain aimed to build on momentum, targeting new factories, especially in the South.
  • Despite a spring win at VW, recent efforts at Toyota and Hyundai encountered resistance, as these automakers raised wages to counter unionization drives.
  • Initially focusing on a rapid approach, Fain encouraged online union pledges and fewer traditional one-on-one meetings. At Mercedes in Alabama, a quick vote resulted in a narrow loss, with 56% against unionizing.
  • “It wasn’t like we got annihilated there,” Fain said. “That was a very, very close election.”
  • Fain emphasized the importance of the UAW’s first contract with VW in Chattanooga, saying, “We won in a place where no one said we could win. Now, the argument is, ‘We’re not winning fast enough,’ when initially it was, ‘We can’t win.’”

• Dodge is moving up the launch date of its gas-powered Charger Sixpack to early summer 2025, five months ahead of schedule, in response to strong demand for traditional internal combustion muscle cars.
  • The decision was influenced by anticipated regulatory shifts under President-Elect Donald Trump, potentially easing EV mandates.
  • Originally planned for late 2025, the ICE Charger Sixpack is now set to arrive ahead of Dodge’s all-electric Charger Daytona.
  • The Charger Sixpack will feature a 3.0-liter twin-turbocharged straight-six Hurricane engine, w

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This Tuesday morning we are excited to publish the very first AutoIndustry.ai weekly email, covering everything the industry needs to know about AI. But before we talk about that, we’re covering how VinFast’s founder is jumping in to keep the company afloat again.

Show Notes with links:

• VinFast is getting another major capital infusion from its billionaire founder Pham Nhat Vuong as well as parent company Vingroup to aid its global expansion.
  • Pham Nhat Vuong, Vietnam’s first billionaire, pledged a personal investment of $2 billion, and Vingroup plans to loan an additional $1.38 billion.
  • Existing loans from Vingroup to VinFast Vietnam (valued at 80 trillion dong) will convert to preferred shares.
  • Vuong and Vingroup pledge continued support through 2026 to reach “cash flow equilibrium by the end of 2026.”
  • Vuong said in June that he was willing to bet all his money on the company’s growth.

• As AI investments accounted for almost 40% of VC deals in Q3, dealerships should prepare for a surge in AI-driven solutions, likely unfolding in three phases, according to guest contributor Steve Greenfield.
  • Phase 1: The AI-Powered “Co-Pilot”: AI “Co-Pilots” can double productivity by handling routine tasks, allowing employees like BDC agents to respond to twice as many leads and accelerating accounting workflows.
  • Phase 2: The AI-Powered “Intelligent Agent”: Intelligent Agents, like Siri or Alexa, operate independently, managing tasks such as answering dealership calls and scheduling service appointments 24/7, making a “24/7 dealership” possible.
  • Phase 3: AI Replaces Roles: Autonomous AI will start replacing repetitive roles. With human capital making up to 80% of costs, dealerships may see profitability benefits while AI handles tasks once managed by people.
  • Steve’s Advice to Dealership Employees: Embrace AI changes and stay updated on new technologies to help your dealership thrive in the evolving landscape.

• AI Prompt of the week: 
  • “Please help me develop a prompt that captures my company's unique voice, tone, language, and energy. I want to ensure that AI-generated content aligns with our brand’s personality and connects authentically with customers, even as we enhance and streamline the process with AI.
  • To do this, ask me one question at a time until you’re able to write a comprehensive, brand-aligned prompt for generating future content.” 
  • Pro Tip from the AutoIndustry.ai writing team: “Just because you’re talking to a chatbot doesn’t mean you should forget your manners. Always use “please” and “thank you” when prompting (mostly so that robots show mercy on you when the machines revolt).”

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Happy Veteran’s Day and thank you to all who have served! Today we’re talking about Ernie Garcia II cashing in on $1.4B of Carvana stock, a new Capital One study highlighting the role of trust and transparency in the car buying process and an IHOP-Applebees shared location.

Show Notes with links:

• Ernie Garcia II, father of Carvana CEO Ernest Garcia III, has strategically sold $1.4 billion of Carvana stock since April, benefiting from a notable rally in the company’s share price amid an impressive restructuring turnaround.
  • Garcia II has offloaded nearly 10 million shares, transitioning his Class B voting stock into Class A shares for liquidation.
  • He still controls 69.2 million Class B shares, making up the core of his $17.6 billion fortune.
  • Garcia’s last major sell-off was in 2021 when Carvana shares peaked, raising questions on the timing of his sales.
  • The stock’s rebound from under $4 at the end of 2022 to around $240 has renewed confidence in the company’s trajectory.
  • Nejat Seyhun, a finance professor at the University of Michigan, said “He might just have other alternatives and other investments… or maybe he expects the stock could fall—it’s better to sell early than late.”

• Capital One's 2024 Car Buying Outlook highlights the role of trust and transparency in car buying, emphasizing the opportunity for dealers to bridge the digital and in-person experience.
  • 88% of buyers complete at least half of the car buying process in person, up 5% from 2023, underscoring the dealership’s essential role.
  • Digital tools are popular for early steps, with most buyers researching models, inventory, and financing options online before heading to the dealership.
  • Trust drives loyalty: buyers are more than twice as likely to return to a dealer they trust, with 48% willing to pay more if they feel secure in the relationship.
  • Transparency is key: while 73% of dealers see the process as “very transparent” or “completely transparent”, only 55% of buyers agree. 
  • “In a time when the ways cars are designed, sold, and purchased are rapidly evolving, the one thing buyers and dealers should see clearly from the start is each other,” says Sanjiv Yajnik, President of Financial Services at Capital One.

• Applebee’s and IHOP are launching their first-ever dual-branded location in the United States, set to open in Seguin, Texas, in early 2025.
  • The Seguin site will combine Applebee’s lunch and dinner with IHOP’s breakfast and brunch, maximizing both brands' peak hours.
  • With a shared kitchen and cross-trained staff, this setup aims to cut costs and improve profitability, potentially supporting struggling locations.
  • The site will feature a drive-thru to meet demand for off-premises dining.
  • Dine Brands plans to roll out up to 15 dual-branded locations in the U.S. “The addition of a second brand may improve uni

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Happy Saturday! Nathan and Chris host the show today to recap the ASOTU team's time in Austin, TX this week and then share some of the good we're seeing in the auto industry.

Park Place Dealerships donates $100,000 in small grant giveaways to local charities. The charities are submitted by employees and community members and in a couple of weeks the Irvine, TX community will learn who has won the grant awards.

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Welcome to Friday! As we wind down the week, we’re talking about how the Trump Presidency could affect the FTC CARS Rule. Plus, Mexico wants answers from Musk as to Tesla’s Mexico Gigafactory and a painting by an AI robot sold for over $1M at auction.

Show Notes with links:

• The Federal Trade Commission’s new regulations to combat auto retail scams, known as the CARS Rule, face an uncertain future with the potential of President-elect Donald Trump’s second term. Here’s a breakdown of what might be ahead:
  • Trump’s election might reduce federal oversight of dealership practices, as he’s known for favoring deregulatory policies.
  • With the CARS Rule already contested by the National Automobile Dealers Association, the rule could lose FTC support in court, leading to a possible halt.
  • Francis Curran from Tully Rinckey law firm says Trump’s supporters generally resist regulatory measures, making the CARS Rule a likely target.
  • However, federal reductions may cause states to increase their enforcement of fair practices in auto transactions.
  • The FTC’s “Unfair or Deceptive Fees” rule may remain, as attorneys like Chris Capurso believe it resonates more with consumers and imposes fewer admin burdens.
  • “Whether or not [Trump] cares about the FTC, he’s probably going to appoint people who will roll back some of that,” says Francis Curran, highlighting a potentially quieter but still active FTC​.

• Following Trump’s election victory, Mexico is pushing Tesla for clarity on the previously announced Gigafactory Mexico, now on hold.
  • Tesla announced Gigafactory Mexico in March 2023, aiming for rapid construction like in Shanghai.
  • Plans stalled by year-end, with Elon Musk citing the uncertain global economy as a factor, opting to build its Robotaxi in Texas, leaving other planned vehicle models for Gigafactory Mexico canceled.
  • Mexico fears heightened tariffs on Mexican goods and wants answers from Musk.
  • Mexico’s Economy Minister Marcelo Ebrard said in a recent radio interview: “I’m going to set up a meeting with (Musk) soon so that he tells me exactly what he’s thinking and see what we can do so this project moves forward,”

• Ai-Da, the world’s first humanoid robot artist, set a new milestone as her AI-created portrait of Alan Turing sold at Sotheby’s auction for $1,084,800,.
  • The piece, titled A.I. God, initially estimated at $120,000 to $180,000, attracted 27 bids.
  • The portrait honors Turing, the "father of AI" and WWII codebreaker who cracked the Enigma machine, altering history.
  • Ai-Da, capable of speech via an advanced language model, aims to spark discussion on AI’s role and its ethical implications.
  • Sotheby’s calls the sale a “new frontier” in the art market, blending technology and visual arts in unprecedented ways.

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We’re live from Austin this morning where we’ll be speaking to the ATAE Comms Directors, but before that, we’re talking about how car dealer Bernie Moreno is headed to the Senate, the second annual list of CBT 40 Under 40 honorees and how Open AI spent a whopping $15M on the Chat.com domain.

Show Notes with links:

• Bernie Moreno, former auto dealer and Trump-backed Republican, flipped a longstanding Democratic Senate seat in Ohio, securing a narrow victory over Sherrod Brown.
  • Moreno won 50.2% of the vote, defeating Brown’s 46.4%, marking a GOP gain in the Senate.
  • The race was one of the most expensive Senate contests in history, crucial for Republican control.
  • His opponent, incumbent Sherrod Brown, targeted Moreno’s dealership past, implying he “would say anything to sell a car.” This line of attack backfired, galvanizing support from auto industry insiders who saw it as a slight against the profession.
  • A critic of federal EV mandates, Moreno argued for consumer choice, advocating that Ohioans—and the auto market—should not be subjected to standards set by California.
  • Moreno credited auto industry colleagues for their unwavering support, stating, “I appreciate the hundreds of phenomenal entrepreneurs in the car business.”
• CBT News has announced its second annual 40 Under 40 awards, spotlighting rising stars in the automotive retail industry. These honorees demonstrate exceptional talent in areas like sales, marketing, management, and innovation, shaping the future of automotive retail.
  • The award recognizes contributions in sales, customer experience, and community service and aims to inspire future leaders in automotive retail.
  • Co-founders Bridget and Jim Fitzpatrick commend honorees' resilience: "The resilience and dedication demonstrated by every member of the retail automotive community is truly inspiring."
  • Friends of ASOTU: Nathanael Greklek, Chief Digital Brand Leader at Mohawk Auto Group,  and Michael Lucki, GM/Operating Partner at Riverhead Mazda
• OpenAI has made waves by purchasing the chat.com domain from HubSpot’s Dharmesh Shah, a move signaling their evolving approach to user interaction.
  • Sam Altman, OpenAI’s CEO, shared the new domain, which directly redirects to ChatGPT.
  • Originally bought by Shah for $15.5M, he later sold it to OpenAI, reportedly at a profit.
  • Shah cited "Chat-based UX" as the next big trend in software for natural, intuitive interactions.
  • Shah hinted that OpenAI paid with shares rather than cash, a unique twist on the transaction.
  • This move aligns with OpenAI’s recent rebranding efforts, including new model series like “o1” aimed at simplifying and enhancing user perception.

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Donald Trump’s return to the White House could disrupt the auto industry’s EV ambitions. Plus, Elon Musk’s advisory role with the new administration and his plans for autonomous tech. And, IKEA opens its first stand-alone restaurant in London.

Show Notes with links:

• Former President Donald Trump has won the 2024 election, and his return could lead to major shifts for the auto industry, especially around electric vehicle (EV) policies, trade, and incentives. Here’s what might be in limbo for automakers:
  • EV Regulations: Trump may roll back aggressive EV mandates set under Biden, reducing pressure on automakers to hit strict electrification targets.
  • Tax Credits: Biden-era EV tax credits could be at risk, impacting demand and profitability for manufacturers deeply invested in electric tech.
  • California’s Emission Standards: Trump might revoke California’s right to set its own emissions standards, affecting states that follow its lead.
  • Trade Policies: Trump may tighten restrictions on Chinese vehicle parts, intending to boost domestic production but likely increasing vehicle costs.
• The Elon factor: Here’s how Musk’s involvement could shape auto policies and beyond:
  • Trump has proposed forming a government efficiency committee led by Musk, aiming to cut $2 trillion from the federal budget. Musk has already expressed his interest in reducing government spending by 30%.
  • Musk advocates for a unified federal approval process for autonomous vehicles, reducing state-by-state regulatory inconsistencies. He commented, “If there is a department of government efficiency, I’ll try to make that happen.”
  • While Trump is generally less favorable toward EV mandates, analysts speculate that Musk’s influence may push for selective pro-EV policies that align with Tesla’s interests.
  • Musk, a long-time proponent of U.S.-based manufacturing, may support Trump’s trade stance on limiting Chinese parts imports, which could impact supply chains and costs for EV makers.
  • Tesla stocks spiked 15% following the election, underscoring investor optimism over Musk’s potential influence in the new administration.

• General Motors has claimed the number two spot in EV sales in the U.S. for Q3 2024, with 32,000 EVs sold across multiple brands. Ford, however, disputes GM's approach to these numbers.
  • GM’s EV lineup includes the Chevy Silverado, Blazer, Equinox EVs, GMC Hummer EV, and Cadillac Lyriq, all on the Ultium platform.
  • GM has sold 370,000 EVs in North America since 2016, with 300,000 of those in the U.S. Tesla remains far ahead, with over 5 million units sold globally since 2008.
  • Ford argues it’s still the “No. 2 best-selling EV brand,” claiming GM’s figures count all brands together, altering the comparison.
• From Reddit polls to repeat diners, IKEA’s food offerings are beloved, with many customers visiting the store just for the food which is why IKEA’s

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Happy Election Day! Well, now that we’ve covered that… today we’re talking about how Stellantis listened to dealers and cut prices on some Jeep models, how Tesla has given up on the human-driven affordable EV, and how your name might start being incorrectly spelled on Starbucks cups this fall.

Show Notes with links:

• Stellantis has decided to significantly reduce prices on its 2025 Jeep Wagoneer and Grand Wagoneer models to address dealer concerns about high prices slowing inventory turnover.
  • Price cuts range from $3,000 to $7,000, depending on the model, with the base Wagoneer now starting at $61,945, while the Grand Wagoneer begins at $86,945.
  • The U.S. market has shown demand; Wagoneer sales are up 79% and Grand Wagoneer sales up 25% through September, supported by both retail and fleet sales.
  • Standard features have also been enhanced, including adaptive cruise control on the Wagoneer and a passenger display on the Grand Wagoneer.
  • Bob Broderdorf, Jeep North America chief, stated, “By lowering MSRPs as much as $7,000 and enhancing standard equipment... these vehicles have become even more compelling.”

• Tesla CEO Elon Musk has put to rest hopes for a human-driven $25,000 EV. He recently revealed that an affordable Tesla would only make sense as a fully self-driving vehicle, shelving plans for an anticipated mass-market, human-driven model.
  • Musk called the idea of a $25K human-driven EV “pointless” and “silly” without full autonomy.
  • Tesla’s updated plan now features the “Cybercab”, a two-door, two-seat autonomous vehicle priced at $25,000, planned for 2026.
  • This strategy change represents a pivot from Tesla's initial goal of building 20 million affordable, human-driven vehicles annually by 2030.
  • Tesla analyst Seth Goldstein “Tesla realized they were late to making an affordable vehicle versus their Chinese-EV peers… So, they changed their strategy rather than make a large investment to produce a new vehicle.”

• Get ready for your name to be spelled incorrectly on your coffee cup again. Starbucks CEO Brian Niccol is bringing Sharpies back into stores as part of his "Back to Starbucks" strategy, aiming to revive a personal touch that Starbucks lost during the pandemic.
  • After three quarters of declining sales, Niccol is cutting unpopular items, like the Oleato, and removing charges for non-dairy substitutes.
  • Sharpies will replace digital stickers on cups, allowing baristas to write personal notes or names, enhancing the in-store experience.
  • Niccol’s “Back to Starbucks” plan focuses on creating a warm, welcoming environment that highlights skilled, personable service.
  • “Our fourth-quarter performance makes it clear that we need to fundamentally change our strategy so we can get back to growth,” said Niccol.

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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