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Episode #1005: The biggest dealership groups continue their march toward market dominance while Toyota’s hybrid boom is pushing suppliers to the limit. Meanwhile, Gen Z graduates face a tough reality as government hiring freezes throw career plans into chaos.

Show Notes with links:

• The biggest names in auto retail continued their dominance in 2024, with the top 150 dealership groups expanding their footprint and market share. Growth, acquisitions, and shifting strategies defined the rankings, showing how consolidation is shaping the future of the industry.
  • The top 150 groups sold over 4 million new vehicles in 2024, up 7.2% from the previous year, and now own 26.6% of all U.S. franchised dealerships, up from just 13.9% in 2011.
  • Holman made the biggest leap, climbing 17 spots to No. 15 after acquiring Leith Automotive Group.
  • Some of our other friends on the list: 140-DeMontrond, 134-Casa, 83-Sam Pack Auto Group, 80-Carter Myers Automotive, 70-DGDG, 60-Rohrman, 58-Bergstrom, 43–Ciocca, 32-Walser, 16-Ourisman
  • “The top 10 reported owning 10.5% of U.S. dealerships, continuing the trend of industry consolidation,” said Mary Raetz, director of the Automotive News Research & Data Center.

• Toyota’s hybrid strategy is paying off—maybe too well. Soaring global demand for its gasoline-electric hybrids has outpaced supply, leaving customers facing long wait times and suppliers scrambling to keep up.
  • Wait times for Toyota hybrids range from 60 days in Europe to nine months in India.
  • Parts shortages, including key components from suppliers like Aisin and Denso, are causing production bottlenecks.
  • Toyota is ramping up output, including a $14B battery plant in North Carolina set to ship batteries in April.
  • Global hybrid sales nearly tripled over five years, hitting 16.1 million in 2024.
  • The surging demand has led to soaring dealership valuations in the US. According to Mercer Capital, Toyota dealerships in metro markets, particularly in Florida, can command valuation multiples as high as 10 times earnings in today’s market.

• ​​The class of 2025 is stepping into a tough job market, with tech downturns, federal hiring freezes, and economic uncertainty making it harder than ever for new grads to secure stable careers. Many are rethinking their career plans as public sector opportunities shrink.
  • Government job applications nearly doubled in 2023, but hiring freezes have now put many positions on hold.
  • Some federal job offers have been rescinded, and funding-dependent industries like nonprofits and universities are also feeling the squeeze.
  • Economic shifts, including tariff concerns, have made companies hesitant to expand hiring.
  • Many students are prioritizing stability over passion, with some opting for private-sector jobs

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 1004: After we discuss the new name of this show (Automotive State of the Union), Paul and Kyle jump into a story Chris Reeves about the Elking Auto Group seeing a homeless mother and daughter in need and stepping up to help.

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 #1003: Dealers and analysts react to President Trump’s tariff order, as the administration considers a tax deduction for auto loan interest paid. Plus, Fisker Oceans have found new life as a rideshare fleet in NYC.

Show Notes with links:

• Trump’s sweeping tariff order is shaking the auto world. The new 25% levy hits nearly all foreign-built vehicles and key components.
  • Analysts predict $4K–$10K price hikes, and Cox Automotive warns that 30% of U.S. vehicle production could be disrupted within a week. 
  • GM stock fell 9%, hit hardest due to its reliance on Mexico and South Korea, Ford and Stellantis were down around 2%
  • Ferrari responded by is raising prices by 10%, up to $350K on some models. 
  • Even Tesla isn’t safe—Elon called the impact “significant” due to global parts sourcing.
  • Michael Wood, GM of JLR Virginia Beach on LinkedIn “This will inadvertently heavily impact a brand that never had jobs here in the first place. The outcome could be disastrous for those working at these stores. Volumes go down, staffs are reduced and displaced.”
  • Rob Malanowski, Internet Director at Ancira Nissan said on LinkedIn “If you’re a car shopper, you will get to choose between: paying more for a non-US built vehicle, paying more for a US built vehicle, deciding you don’t really need a new car right now. Bet we’ll see a ton of people in group 3.”

• President Trump has proposed a tax deduction for interest paid on auto loans—but only for vehicles made in America. The idea, announced alongside 25% tariffs on imported vehicles, has drawn mixed reactions from dealers and analysts alike.
  • Dealers are split—some say it could help consumers, while others doubt its feasibility.
  • Analysts say the deduction could save buyers around $20 a month, but tariffs could add $60–$90 to payments.
  • Used car prices could rise 9-12% due to increased demand for domestic models.
  • The White House and Speaker Johnson’s office have yet to confirm details, including whether the deduction applies to standard tax filers.
  • “I think it’s Trump’s way of trying to regulate interest rates,” said Ford dealer Nick Anderson, calling it a “pipe dream.”
  • Trump argues the policy will “pay for itself” by increasing U.S. auto production.

• What happens to thousands of Fisker Oceans after the company goes bankrupt? In New York City, they’re hitting the streets as Uber and Lyft rides, thanks to a fleet operator with a vision and a Bronx repair shop keeping them roadworthy.
  • American Lease bought 3,000 Fisker Ocean EVs for $42.5M, renting them to rideshare drivers.
  • New York City mandates all Uber & Lyft rides be EV or wheelchair-accessible by 2030.
  • BHP Service Center in the Bronx is now the go-to repair shop for these orphaned EVs
  • Shop owner Ronen (“Roni”) is already stockpiling parts, purchasing wrecked ve

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 #1002: Today's show dives into Trump’s game-changing 25% auto tariff and what it means for car prices, Hyundai’s massive new EV plant in Georgia and OpenAI’s latest AI breakthrough in image and text generation.

Show Notes with links:

• President Trump has officially imposed a 25% tariff on vehicles built outside the U.S., effective April 3. The move is set to rattle the global auto supply chain and could result in major price hikes for consumers.
  • The tariff increases from a 2.5% base to 25%, covering vehicles and some auto parts like engines and transmissions.
  • Parts meeting the United States-Mexico-Canada Agreement (USMCA) rules will get a temporary reprieve until the Commerce Department sets new regulations.
  • Aaron Bragman of Cars.com said that 50% of all cars are imported from outside the US and encouraged potential buyers to act soon as prices could rise from $3K - $12K “If you need a new car, go get one as soon as you possibly can—lock in a price—because those prices might be going up very soon.”
  • Manufacturers may shift production and pass higher costs to consumers and dealers, while retaliatory tariffs loom from other nations.
  • UAW President Shawn Fain called it a victory for autoworkers, saying “Ending the race to the bottom in the auto industry starts with fixing our broken trade deals.”

• Hyundai has officially opened its state-of-the-art EV plant in Georgia, marking a historic $7.6 billion investment in U.S. manufacturing. The facility will produce Hyundai, Kia, and Genesis electric vehicles, including the much-anticipated IONIQ 9.
  • Hyundai’s project is Georgia’s largest economic development investment ever, expected to create 8,500 direct jobs and over 58,000 total jobs.
  • The 2025 IONIQ 5 was the first model built at the plant, with the three-row IONIQ 9 set to debut this spring.
  • Hyundai recently announced a $21B investment in U.S. production, including $9B for EV expansion and $6B for a new steel plant in Louisiana.
  • Hyundai Motor Group executive chair Euisun Chung said, “Together with the talented workforce at HMGMA, we are building the future of mobility with America, in America.”

• OpenAI is rolling out built-in image generation within ChatGPT, marking a big leap in AI-powered creativity. Dubbed “Images in ChatGPT”, this feature is available starting today across multiple user tiers.
  • Users can now generate images directly within ChatGPT using GPT-4o’s “omnimodal” technology.
  • New enhancements improve “binding”, meaning the AI better understands object relationships and attributes—avoiding mix-ups like miscolored shapes.
  • Unlike past models that produced garbled, misspelled words, GPT-4o can now render clean, legible text in images.
  • The AI now accurately follows detailed text-based prompts, even replicating whiteboard notes and comic strip text.
  • Research lead Gabriel Goh call

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 #1001: Nissan reveals a bold new roadmap, slashing vehicle development times and expanding its EV lineup. Meanwhile, California now boasts more EV chargers than gas nozzles and AI is taking orders at drive-thrus—will customers embrace the speed or miss the human touch?

Show Notes with links:

• Nissan is trying to shake off doubts about its future with a major product showcase in Japan, highlighting a wave of new vehicles and a focus on the U.S. market. 
  • Nissan will release over ten new and updated vehicles in the U.S. and Canada by early 2027.
  • The company plans to cut vehicle development time from 55 months to 37 months for the first model in a family, with later models reduced to just 30 months.
  • The Leaf transitions into a crossover, boasting a new CMF-EV platform, a sleek design, and a more efficient, lower-cost battery.
  • Nissan also teased a rugged EV crossover, designed to stand out in a crowded market. The model will be built in Nissan’s Mississippi plant as part of a $500 million investment.
  • The Sentra and Rogue will both get major updates, with the Rogue gaining a plug-in hybrid option.
  •  “The U.S. is of critical importance for us — we want it to grow,” said Guillaume Cartier, Nissan’s chief performance officer.

• California is accelerating its EV infrastructure, now boasting 48% more EV chargers than gas nozzles, according to a recent announcement from Governor Gavin Newsom’s office. As EV adoption surges, public charging options have nearly doubled in the past year, supporting the state’s ambitious green energy goals.
  • There are over 178K public EV chargers statewide vs. 120,000 gas nozzles, and of that, nearly 17K are Level 3 fast chargers
  • On top of that, the California Energy Commission estimates that there are more than 700,000 Level 2 chargers installed in single-family homes.
  • 26% of vehicles on CA roads in 2023 were plug-in hybrids or full EVs and a $1.4 billion investment in EV infrastructure was recently approved.
  • “The California EV driver experience is getting better by the day,” said CEC Chair David Hochschild, emphasizing continued investments in underserved areas.

• Taco Bell, KFC, and Pizza Hut are about to get a high-tech upgrade. Yum! Brands is teaming up with NVIDIA to bring AI voice assistants to 500 drive-thrus. The goal? Faster service, more accurate orders, and better upselling.
  • Studies show AI-assisted orders are 29 seconds faster than the industry average and more than half of Yum! Brands’ 2024 sales came from digital transactions.
  • Other chains are joining in with McDonald’s and Wendy’s rolling out AI ordering.
  • Joe Park, chief digital and technology officer of Yum! Brands said AI could improve the customer experience because “the voice AI is always positive, has the right tone of voice, has the right word selection, [and] can upsell cons

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 Tuesday, September 28, 2021, Paul J Daly and Kyle Mountsier pressed record for the very first time. Now, 1,274 days later, they’re recording the 1000th episode of the Automotive Troublemaker.

Today we’ve got special guests, a look back, a look forward, and a HUGE announcement at the end.

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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With 1 more day until Episode 1000, Kyle is on his way to Syracuse and Paul is joined by Todd Caputo.  Today, we dive into a quick cybersecurity response that saved hundreds of stores from a malware attack, Ford’s $18M legal loss over a dealership sale, and the effect the current administration could have on EV adoption.

Show Notes with links:

• A major cyberattack nearly hit hundreds of dealerships in early March, but Reynolds and Reynolds' Proton cybersecurity division stopped it in its tracks.
  • On March 12, Proton detected malware disguised as an identity verification check, originating from video links provided by LESA Video Solutions.
  • The attack aimed to infiltrate dealership employees' and customers' computers through social engineering.
  • Proton blocked the malware across 1,000 dealerships, stopping it from spreading to 40,000 computers.
  • “Our team quickly identified how to shut it down … and we pushed out tools to block it,” said Brad Holton, VP of Reynolds and founder of Proton.
  • LESA confirmed the issue was resolved by March 15, launching new security measures.
  • Cybersecurity expert Erik Nachbahr called the attack a “textbook example” of threats dealerships face today, emphasizing the need for early detection and rapid response.

• A judge has ruled that Ford improperly used its right of first refusal to block Auto Dealership Partners from acquiring a dealership, ordering the automaker to pay $18 million in damages.
  • The right of first refusal allows automakers to reject a dealership buyer in a sale and substitute their own, sometimes using it to close or purchase the store.
  • Ford used its right of first refusal in 2019 to prevent the sale of a Ford dealership in Benton, Ark., but Circuit Judge Timothy Davis Fox found Ford “engaged in deceit and fraud” by misleading the original buyer about the deal’s approval.
  • Auto Dealership Partners was awarded $16 million in punitive damages and $2 million for financial harm from the altered transaction.

• The Trump administration’s plans to eliminate EV tax credits, weaken pollution rules, and cut charging infrastructure funding could slow EV adoption, increase emissions, and threaten factory investments, according to industry experts. While EVs will continue to grow, the tipping point for mass adoption may be delayed.
  • Analysts say ending federal EV support could reduce EV sales by 40% in 2030 and put factories at risk of closure.
  • President Trump and congressional Republicans aim to cut incentives, halt charging station funding, and block California’s emissions rules.
  • Princeton and Harvard studies estimate 8.3 to 9.9 million fewer EVs on U.S. roads by 2030 if policies are rolled back.
  • “It is clear based on the evidence that there is no inflection point, no significant market growth, without strong policy support.” — Gil Tal, Direc

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, we get to recap the Greater Charlotte Automobile Dealers Association Auto Tech Competition that brought over 300 high schoolers to Charlotte Motor Speedway to compete on diagnosing issues in a high-stakes timed challenge. Students also participated in mock job interviews, connected with industry pros, and explored career paths in an industry that’s actively seeking fresh talent.

We're joined by our good friend Todd Caputo, Ahmad Halawi from the GCADA and George Arrants from ASE to talk about how the technician shortage is a national concern with a local solution, and how they built a competition that fosters recruitment.

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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Happy Friday! Today, we’re covering how Elon rallied Tesla employees during a surprise all hands meeting last night. Plus, auto auctions have their best year since 2020 and consumers prefer AI-generated responses to reviews over those written by humans.

Show Notes with links:

• Elon Musk held a surprise all-hands meeting at Tesla's Texas Gigafactory on Thursday night, reassuring employees amid a steep drop in stock value. Musk urged employees and investors to "hang on to your stock" while promoting Tesla's Cybercab and Optimus robots.
  • Musk addressed Tesla’s stock drop, which has lost roughly half its value since December, attributing future success to autonomous driving and AI.
  • The operations team is tasked with ramping up Cybercab production, which Musk says will use a high-speed, electronics-style manufacturing process.
  • Tesla plans to build thousands of humanoid “Optimus” robots, aiming to produce "at least one legion" this year and scale up further in 2025.
  • Despite recent political controversy surrounding Musk, employees avoided the topic in the Q&A session.
  • Musk admitted he is "stretched pretty thin," saying “I have like 17 jobs, at this point,” managing multiple companies and government advisory roles.

• The National Auto Auction Association (NAAA) reports that 2024 saw the highest number of vehicles sold at auction since 2020, marking a strong recovery for the wholesale market.
  • NAAA member auctions moved nearly 7.6 million vehicles in 2024, a notable rebound.
  • Of the 12 million vehicles offered, 61.3% were sold—the second-highest conversion rate ever recorded.
  • The average wholesale price fell 5% to $13,921, but volume gains helped drive total sales to $105 billion.
  • NAAA credits auctions as the "backbone of vehicle remarketing," offering vital services for efficient redistribution, offering logistics, reconditioning, and titling services that digital-only platforms struggle to match.
  • "Our members reported year-over-year growth despite headwinds," said Larry Dixon, NAAA vice president of auction data solutions.

• Who should respond to online reviews? AI or actual people? For the second consecutive year, BrightLocal’s Local Consumer Review Survey found that consumers prefer AI-generated responses over those written by humans. The study raises questions about how consumers perceive AI in customer interactions.
  • In two separate tests (a restaurant in 2024 and a vet clinic in 2025), 58% of respondents preferred AI-generated responses over human-written ones.
  • 89% of consumers are more likely to shop at a business that responds to reviews, while 56% hesitate if a business ignores them.
  • While consumers prefer AI-written responses, 46% also say reviews "f

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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Happy Thursday, Troublemakers! Today we’re talking about Amazon dipping its toe in the used car market, GM is going all-in on AI with Nvidia, and new data reveals surprising trends about who’s actually shopping on Amazon. 

Amazon has set its sights on used cars. The company, which has already been refining its new car-shopping platform in select U.S. markets, is gearing up to introduce used inventory to the mix.

• • Amazon Autos expanded from 54 markets to 68 since its national ad campaign with Hyundai in January.
  • Amazon’s Director of Autos, Fan Jin, confirmed that adding used car inventory is the platform’s next big milestone, enabling dealers to sell both new and used inventory in a fully e-commerce environment.
  • Amazon is also exploring ways to offer F&I products in a low-pressure, consumer-friendly format, striking a balance between profitability for dealers and ease of purchase for customers.
  • “More and more customers are comfortable with a fully online car transaction,” Jin said, while noting that many still want an in-person touchpoint before finalizing purchases.

• At Nvidia’s annual GTC conference, GM announced a major partnership with the chipmaker to integrate AI into its vehicles, factories, and robotics.
  • GM will use Nvidia’s Omniverse platform to simulate virtual assembly lines, reducing downtime and improving efficiency.
  • Nvidia’s AI training software will help GM’s factory robots improve at tasks like precision welding and material handling.
  • Next-gen GM cars will feature Nvidia’s Drive AGX system-on-a-chip, capable of 1,000 trillion operations per second, to enhance autonomous driving.
  • While GM’s Super Cruise is highly regarded, the automaker is looking to Nvidia’s tech to advance its self-driving capabilities.
  • Nvidia’s automotive division is still small, generating $5 billion in revenue this year, but VP Ali Kani sees a “trillion dollar opportunity.”

• A new report from Numerator reveals key insights into Amazon’s shopper demographics and loyalty, highlighting both strengths and potential areas for growth.
  • Amazon boasts a staggering 99% repeat purchase rate, far exceeding the e-commerce industry average of 28-30%.
  • 75% of Amazon shoppers are women, and they are more likely than the average consumer to use the platform.
  • Amazon sees higher engagement from rural and middle-income shoppers, but urban and lower-income demographics are less active, while Black, Hispanic, and Asian consumers all index below the national average.
  • Baby boomers make up 33% of Amazon shoppers, though they are slightly less likely to shop there than other generations.

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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