Automotive State of The Union

By More Than Cars Media Network

Paul J Daly and Kyle Mountsier don’t just read headlines, they make the most important connections across car dealerships, general retail, tech, and culture. The goal? To help automotive leaders think... more

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Automotive State of The Union episodes:

December 01, 2023Cyber-Thursday, and Sharing the Customer’s Voice with Mickey Anderson
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It’s officially the last month of 2023 and we’re reviewing yesterday’s much anticipated launch of the Cybertruck and interviewing the dealer behind a letter to the President.

Show Notes with links:Tesla's long-awaited Cybertruck is finally here following a highly publicized launch event at the company’s Austin, TX factory yesterday. With a starting price tag 50% above initial estimates the futuristic truck has an uncertain future.
Pisces range from $60,990 to $99,990 across three variants. The top model, 'Cyberbeast,' is slated for next year, alongside the all-wheel drive version starting around $80,000. Entry-level model expected in 2025 at approximately $61,000.
Elon Musk claims the Cybertruck offers "more utility than a truck" and speeds "faster than a sports car." In the demo, it out pulled an F350 Diesel and bea a Porsche 911 in a race…while towing a Porsche 911
The longest-range variant estimates 340 miles, extendable to 470 miles with an additional battery pack, falling short of the originally touted 500 miles
They also did a half-baked redo with a glass strength demo where a baseball was thrown at the window to demonstrate its durability
Our favorite review is from popular tech YouTuber Marques Brownlee
Yesterday we covered the EV Voice of the Customer letter, which urged President Biden to reconsider aggressive EV targets and was signed by almost 4000 dealers. Today, we’re joined by Mickey Anderson, President and CEO of Baxter Auto Group and leading force behind the letter.
The letter expressed concerns over the EPA proposal pushing EV sales to 60% by 2030 and 67% by 2032.
The letter, titled “The Voice of the Customer,” is meant to show the political powers that the dealer is closest to the customer and ready to speak on their behalf.

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.Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
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19min
November 30, 2023F-Bomb-Drop On OEMs, 4000 Dealer Letter, RIP-Legend
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Welcome to Thursday as we say farewell to November. Today we talk about Shawn Fain’s return to the headlines as well as a letter that was signed by 4000 dealers and sent to the President. We also pay our respects to a legend.

He’s baaaaack! After a hard fought and successful effort in recent negotiations with Detroit’s Big 3, Shawn Fain and the UAW are putting on a full court press to unionize every other non-union automaker with a rather public initiative as workers at 13 non-union automakers will be announcing simultaneous campaigns
Even the new EV entrants are being looped in as Tesla and Rivian are in the mix
Fain said in a video: "To all the auto workers out there working without the benefits of a union, now it's your turn." The money is there. The time is right," he added. "You don’t have to worry about how you’re going to pay your rent or feed your family while the company makes billions. A better life is out there."
Tesla CEO Elon Musk, said when asked about the union effort, "I disagree with the idea of unions." and continued that if Tesla is unionized, "it'll be because we deserve it and we failed in some way."
Multiple other OEMs released statements pointing to their history of treating employees well and saying unions will make it more challenging to do so
Nearly 4,000 U.S. dealerships have collectively urged President Biden to reconsider aggressive EV targets, focusing on current challenges in consumer adoption and infrastructure readiness.
The initiative, led by Mickey Anderson, CEO of Baxter Auto Group and a broad group of Dealers, representing various states and car brands, expressed concerns over the EPA proposal pushing EV sales to 60% by 2030 and 67% by 2032.
The letter, sent on Tuesday begins with appropriate title “Voice of the Customer” and continues; "What I and other dealers identified early on is that the voice of the customer was really absent from this entire conversation, and there's no way that we'll have a scalable solution if we don't have consumer adoption."
"Electric vehicle demand today is not keeping up with the large influx of BEVs arriving at our dealerships prompted by the current regulations. BEVs are stacking up on our lots."
We’re going to take a moment to pay our respects to a legend. Charlie Munger, Warren Buffett's right-hand man and a pivotal figure in building Berkshire Hathaway Inc., passed away at 99. Renowned for his simple yet profound advice on business and life, Munger's three key rules for success are timeless and instructive.
First rule: Don't sell anything you wouldn't buy.
Second rule: Don't work for anyone you don't respect and admire.
Third rule: Only work with people you enjoy.

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.Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
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16min
November 29, 2023GM Projections Up, Dealer Values Remain Strong, Wegmans Hot Meals
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Welcome to episode 600 of the Automotive Troublemaker. Today we dive into how GM seems to be fine after the UAW strike, how dealership values are staying strong, and how Wegmans is trying to change the way we shop for groceries.

General Motors emerges from a costly six-week UAW strike, projecting strong profits for 2023. Despite increased labor costs, GM's strategic planning and stock buyback indicate a robust financial future.
GM suffered a $1.1 billion hit due to the UAW strike but forecasts a $9.1B-$9.7B net income for 2023.
The company plans a $10 billion share buyback and a 33% dividend increase, reflecting confidence in its financial health.
The new contracts with UAW and Unifor are expected to raise GM's North American labor costs by $1.5 billion in 2024.
GM's stock rose 8.9% in premarket trading, signaling investor optimism.
“I am confident in our ability to continue generating significant free cash flow as we make the EV transition” stated CEO Mary Barra.
Despite a dip in dealership values in 2023, the market remains robust, with dealership buy-sell activity and profits significantly higher than pre-pandemic levels, as reported by Haig Partners.
Blue sky values have decreased by 12% since 2022 but are still over double pre-pandemic levels and 2023 is on track to be the third most active year for dealership transactions, fueled by 385 transactions through the end of Q3.
High demand persists for dealerships in fast growing regions with “pro-business climates”, with the report citing recent record sales in South Florida and pending sales that will set record-high values for their brands.
Publicly traded dealer groups saw a 92% drop in domestic dealership acquisition spending in Q3, but overall spending remains high.
Fixed operations continue to drive profits, with a 9% year-over-year increase in gross profit.
The brand with the most interested buyers is Toyota.
Wegmans has opened a novel hybrid supermarket/food hall in Manhattan, signifying a shift in the grocery industry towards multi-functional, community-oriented spaces.
The new Astor Place store in NYC features a unique blend of grocery and food hall concepts, offering diverse food options, such as a sushi bar, bakery, fish market sourcing selections directly from Japan, and a pre-made salad area.
This shift caters to consumer preferences for convenience, with supermarkets offering restaurant meals, meal kits, and ready-to-eat options.
Consumers often prefer to eat out rather than cook on their shopping days, which has prompted a rise in demand for hot food options in supermarkets, according to Atul Sood, chief business officer at Kitchen United.

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.Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
...more
15min
November 28, 2023Electric Deals, Jersey Green, Keyless Cars
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Today we dive into the big discounts making EVs more affordable than ever. We also talk about New Jersey's move to ban gasoline cars by 2035, as well as the options and soon-to-be real future of digital car keys.Amid increasing US production and surplus inventory, EVs are seeing significant discounts. However, this buyer's market might not last long.
OEMs from Ford to Tesla have been cutting EV prices in response to a surplus in the US, with some discounts up to 31%, making them competitively priced against gas powered equivalents
For instance, the BMW iX, with advanced features like a touch-responsive sunroof and gesture-controlled stereo, is available at a 17% discount for $80,195. For more budget-friendly options, Nissan's Ariya is listed at an 18% discount for $36,690, while the Hyundai Kona Electric is offered in Atlanta at a substantial 31% discount, priced at $29,990.
Elaine Buckberg, a former economist at General Motors and a senior fellow at Harvard University says,“The stories being written that it’s falling apart are just dead wrong.
The aggressive pricing is likely reflective of an inventory imbalance that will regulate as EV sales are up 2.5 times in the last 12 months
2035 might just be the new 2030. Joining states like California, New York, and Colorado, New Jersey is doing what it can to speed up its EV Transition and has announced a ban on manufacturer sales of new gasoline vehicles by 2035.
New Jersey adopts California's Advanced Clean Cars II regulation, aiming for 100% zero-emission vehicle sales by 2035.
The rule mandates that 43% of cars produced by 2027 be zero-emission, increasing to 68% by 2030.
This regulatory shift doesn't impose direct obligations on consumers or dealers, but significantly influences manufacturer production.
The New Jersey Coalition of Automotive Retailers criticizes the move, citing concerns over consumer choice and affordability arguing the mandate could significantly disrupt the market, impacting both consumers and car dealers
Imagine a world where losing your car keys doesn’t matter? Some of the brightest minds are doing just that as digital keys are steadily making their way to center stage. While adoption is growing, questions around technology choices, security, and compatibility remain.
Daniel Knobloch, vice president and a board member at Car Connectivity Consortium who also worked for over seven years as a wireless systems architect at BMW talks about the emerging tech in an interview on The Verge
There are a variety of standards in play that each have pros, cons, and a chance of making it into your next new vehicle
NFC: Near-Field Communication, UWB: Ultra-Wideband and Bluetooth.
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.Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
...more
15min
November 27, 2023EV-Hybrid Battle, Tesla’s Two Big Releases, Busy Black Friday Results
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Retail Auto is ready to roll after a great Thanksgiving weekend as we talk about the very tight race for the electric future between two titans. We also cover two notable releases from Tesla this week, as well as a review of a very busy Black Friday

Tesla and Toyota are in a philosophical and practical head to head as Elon Musk's push for an all EV world is being pushed back on by Toyota's renewed focus on the rapid (and affordable) deployment of its hybrid technology.
Musk aims to surpass Toyota as the top-selling automaker with Tesla's all-electric lineup by 2030 as Tesla is already outselling some of Toyota’s bestsellers in the U.S.
The Model Y surpassed Camry this year and was within 7000 units of the Rav4
Despite Tesla's growth, there's a slowdown in EV sales, while Toyota's hybrids, including Lexus models, are gaining traction due to their affordability and improved efficiency.
Toyota Chairman Akio Toyoda emphasizes the consumer appeal of hybrids as a way to go mostly electric without the inconveniences
Tesla, facing a competitive market, has cut prices and seen growth in Model Y sales, but struggles with profitability, as its profit fell 44% in the third quarter.
David Christ, Toyota North America's brand head said: “The buzz of electrification in the industry has somewhat mainstreamed hybrids. It’s really had an awakening.”
Tesla has two releases of sorts this week. FSD v12 and a Cybertruck:
Tesla has begun releasing its Full Self-Driving (FSD) version 12 update to employee testers, a key step in achieving its goal of true self-driving capability. This update notably shifts vehicle control from hardcoded engineering to neural network-based systems.
The engineers had the first release, now all employees, next is consumers
Previously Musk had a stated goal of FSD capability by the end of this year
On Thursday (Nov 30th) Tesla will host the much anticipated Cybertruck Delivery event where the first production units will be delivered to some very patient new owners
Black Friday 2023 has defied analyst expectations with a record $9.8 billion in online sales, showcasing American consumers' adoption of digital shopping for those great Black Friday deals
Online sales hit a historic high of $9.8 billion, up 7.5% from last year, with mobile shopping accounting for 54% of these sales.
The "Buy Now, Pay Later" (BNPL) trend saw a significant 47% increase, indicating a shift in consumer payment preferences.
Store-branded credit cards are losing popularity, with registrations down 37% from 2015, as shoppers opt for more flexible and less brand-loyal payment methods.

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.Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
...more
16min
November 24, 2023Black Friday Gap and an Inspiring Dealer Story
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It’s Black Friday and the Gap might be back. We also caught up with married Dealers Michael and Jennifer Lee of Freedom Kia and Seneca Ford who talk about buying a first time dealership DURING the pandemic. We also talk about the impact of encouraging your teams to give back as a part of their job. BLACK FRIDAY BOGO SALE going on now on all ASOTU Ts and hats!
Gap’s stock price is up over 30% this week as the new CEO, Richard Dickson, announces a bold strategy to revitalize the company's four brands - Old Navy, Gap, Banana Republic, and Athleta, emphasizing a clearer brand perspective and innovative marketing.
Old Navy: Focusing on fun and value, Old Navy needs consistent delivery of bold narratives and trend-aware assortments to enhance customer appeal.
Gap: Dickson highlights the necessity for Gap to re-engage in cultural conversations, offering trendy assortments and culturally relevant messaging.
Banana Republic: To move away from a transactional approach, Banana Republic is targeting the quiet luxury space with refined products and pricing strategies.
Athleta: Addressing lackluster performance, Athleta plans to return to its performance roots, with a comprehensive brand reset expected to take time.
"We’re telling too many stories. We need to edit ourselves to tell a more clear and precise story that stays consistent and has a relentless, repetitive narrative to it." - Richard Dickson.

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.Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
...more
15min
November 23, 2023 Turkey Talk, Parades or Football, and Paul plays Christmas Music
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On this Thanksgiving Day, we are thankful for YOU!Dealers across the country are gifting turkeys during November, Kyle gets mad at Paul for playing Christmas music, and Jordan joins the pod as we discuss the Macy's Thanksgiving Day Parade alongside Football.Happy Thanksgiving!

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.Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
...more
8min
November 22, 2023OpenAI Drama, Ford's EV Plant Downsize and Police Hogging Hybrids
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On the homestretch to Thanksgiving, we’re concluding a rollercoaster week at OpenAI with Sam Altman's surprising reinstatement. We’re also talking about Ford's strategic downscaling of its Michigan EV battery plant, and Ford discontinuing certain hybrid models to prioritize police.(00:00:00) Intro

(00:01:40) More than Cars Premiere

(00:02:45) BOGO Sale ASOTU Swag

(00:03:21) OpenAI brings Sam Altman back as CEO

(00:07:31) Ford Scales down EV Battery Plant in Michigan

(00:09:55) Ford is Killing the Explorer Hybrid Because Cops are Buying All of Them
After a wild few days, Sam Altman, initially ousted as OpenAI CEO, has been rapidly reinstated following intense pressure from stakeholders and a massive-exodus threat from employees
At 1am today , Alman posted on X, “i love openai, and everything i’ve done over the past few days has been in service of keeping this team and its mission together. when i decided to join msft on sun evening, it was clear that was the best path for me and the team. with the new board and w satya’s support, i’m looking forward to returning to openai, and building on our strong partnership with msft.”
Former Salesforce co-CEO Bret Taylor and ex-Treasury Secretary Larry Summers join OpenAI's board.
Hundreds of OpenAI employees threatened to move to Microsoft if Altman wasn't reinstated.
“Returning to OpenAI & getting back to coding tonight,” - Greg Brockman, OpenAI co-founder.
Ford announced they are scaling back their plans for its EV battery plant in Marshall, Michigan, citing slower-than-expected EV adoption
Ford is restarting construction but reducing the plant's size and capacity, impacting job creation and investment.
The project now anticipates 1,700 jobs as opposed to the initial estimate of 2500, a 32% decrease, and a total investment cut to $2.2 billion.
Despite scaling down, Ford remains committed to EVs, including LFP and NCM battery technologies
Ford has stopped production of the Explorer and Lincoln Aviator Hybrids, apparently redirecting focus to meet the high demand for the Explorer Police Interceptor Utility Hybrid.
The decision is driven by strong demand from police departments for the hybrid police vehicle.
The Explorer Hybrid's limited efficiency improvement over the base model contributed to its discontinuation only providing an additional 2 mpg of efficiency
However, police departments favor the hybrid for its fuel efficiency during idle periods, offering a sizable reduction of operational costs in fue

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.Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
...more
14min
November 21, 2023Flexible Ford, Toyota’s Fines, and a Fireproof Social Windfall
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As we close in on Thanksgiving, Ford Dealers are extra thankful as Ford's EV dealer program changes. We also talk about Toyota's $60 million penalty for poor lending practices, as well as a viral story of a Stanley tumbler surviving a Kia car fire.Announcements:
BOGO sale going on now
More Than Cars: Episodes 1-3 Mashup Premiere on Tuesday, November 21 at 7PM ET. Join the event on LinkedIn
ASOTU CON will be May 14-17, 2024 (Tuesday-Friday) at the Live! Casino and Hotel Maryland
Following a legal dispute in Illinois where Ford's program was challenged for violating state franchise laws. The company has made significant changes to its EV certification program for dealers, significantly cutting training costs and charger installation requirements amidst legal challenges and critical dealer feedback.
Training costs for dealers have been cut in half and Ford has also reduced the number of Level 2 chargers required for dealers in the higher tier “Certified Elite”from five to only three, and the lower “Certified” level now only requires two.
Ford remains committed to the EV program, stating: "It is designed to make sure that Ford and its dealers provide Illinois Ford EV customers with a segment-leading experience."
Toyota Motor Credit Corporation is facing a $60 million penalty by the U.S. Consumer Financial Protection Bureau (CFPB) for alleged violations in refund practices on bundled products in loan contracts, impacting consumer credit reports.
CFPB orders Toyota to pay $48 million to affected customers and a $12 million penalty.
The issue centers on difficulties in canceling bundled products in car loan contracts and inaccurate refunds.
Toyota's financing unit was accused of providing misleading information to consumer reporting companies about borrowers' payments
In a remarkable incident made for Tiktok, a Stanley tumbler survived a Kia Sorento car fire, leading the company to not only replace the tumbler but also the burnt car as the owner made a video where she pried the tumbler from the charred interior and shook it to reveal that there was still ice in it
The incident gained viral fame on TikTok, with over 80 million views, showcasing the tumbler's resilience.
Stanley, seizing the opportunity for positive brand engagement, offered to replace both the tumbler and the car.
The burnt Kia Sorento was part of a recall for fire risk, highlighting ongoing concerns with vehicle safety. The company encourages customers with affected vehicles to keep them parked outside.

(00:00:00) Intro(00:01:33) More Than Cars Mashup Event(00:03:03) BOGO Black Friday ASOTU Swag Sale(00:04:18) Ford Tweaks Dealer EV Program(00:08:26) Toyota fined by CFPB(00:11:15) Stanley Tumbler survives Kia Sorento C

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.Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
...more
15min
November 20, 2023It’s Over Over, EV Makers Fighting For Life, AI Leadership Shuffle
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As we start off what will certainly be a busy holiday week, we tie up a few loose ends around the UAW strike. We also talk about some EV maker’s attempts to jolt waning consumer demand, as well as a big shakeup in AI leadership.
Some expected, but important news broke late last Friday, and we’d be remiss if we didn’t at least mention it after extensively covering the UAW strike for the better part of the last three months: the Ford and Stellantis contracts have reached the number of votes needed to pass the contract. It’s over, over.
Both companies supposedly passed the measure with strong support of 68%
As EV demand has had a highly publicized demand drop among consumers, we are seeing many, highly invested companies adjust plans and make moves to bring EV demand to life.
Vietnamese EV maker VinFast is hoping to get customers over the hurdle of buying from a new company by promising to pay consumers directly if they have service issues.
Repairs are categorized into three types: minor inconveniences like hvac, cameras, etc ($100), inoperable vehicle issues like regenerative braking, safety functions, etc ($300)
Tesla has decided to lift its ban on resale of their much anticipated Cybertruck ahead of their ‘delivery event’ scheduled for November 30th where the company will be delivering a reported 10 vehicles
The 10 unit delivery event was confirmed by a company executive. This limited delivery, following years of anticipation and delays, marks the initial phase of the Cybertruck's launch, with Tesla expected to gradually increase production towards a target of 5,000 units per week by 2025
Microsoft has recruited ex-OpenAI CEO Sam Altman as well as President Greg Brockman as Altman was abruptly ousted as CEO from OpenAI, the company he co-founded and the creator of ChatGPT. After the announcement, Brockman resigned in protest.
According to CNN contributor Kara Swisher, who cited sources familiar with the situation, the crisis at OpenAI was significantly fueled by a divide between Sam Altman's push for rapid AI development and the board members' preference for a more measured approach.
(00:00:00) Intro

(00:01:38) MTC Mashup Event

(00:03:56) UAW Talks Near End

(00:05:40) VinFast will pay direct for defect repairs

(00:09:01) Tesla to lift ban on Cybertruck resale

(00:11:05) Microsoft hires Sam Altman, former CEO of OpenAI

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.Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
...more
15min

FAQs about Automotive State of The Union:

How many episodes does Automotive State of The Union have?

The podcast currently has 1,462 episodes available.

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