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Episode #1021: We hit the ground at the NY Auto Forum to catch up with the voices shaping the retail auto landscape, featuring interviews with Mike Stanton, John Bozzella, Stewart Stropp, Tom Castriota, Alan Haig and Bernie Moreno. From EV and tariff turbulence to actionable insights and dealer valuations, this episode is packed with takeaways from the industry’s front lines. Thanks to Liftkit for making it all happen.

• Tariff Talk & EV Targets
  • Tariffs could cause pandemic-level supply shocks; NADA urges policymakers to consider job risk and affordability.
  • EV mandates like NY and CA's 35% target by 2026 are “mathematically impossible” under current conditions, per John Bozzella, President of Alliance for Automotive Innovation.
  • Dealers should monitor, not panic; manufacturers want more time to respond to sudden policy shifts.
  • Tom Castriota, Chairman of NADA echoes the need for consistent messaging: “We’re monitoring, not making knee-jerk moves.”

• Data-Driven Service & Trust
  • JD Power’s Stewart Stropp shared how combining data sets with AI can help dealers act on real-time insights.
  • Platforms that merge call center, OEM surveys, and social content are improving customer retention.
  • Tools like photo/video MPI drive measurable profit gains—up to 40% higher RO totals.

• People First, Politics Later
  • Senator Bernie Moreno encourages dealers to double down on people and operations: used cars, finance, service.
  • Calls on dealers to engage with state reps: “Don’t make me the last auto dealer in the Senate.”
  • Blunt on EV policy: “Make cars consumers want, not what politicians want.”

• Valuation Steady Amid Uncertainty
  • Despite tariff concerns, Alan Haig says dealer buy/sell activity is strong with values beating expectations.
  • Toyota and Lexus remain top targets; Kia and Mazda are rising stars.
  • “Private buyers still see a 20-year horizon,” Haig notes.

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 #1020: We’re breaking down retail sales insights for March (not just auto) driven by pre-tariff buying sprees as we dive into data from Cars Commerce’s latest Q1 report. We also talk about a household brand that helps people build things, diving into helping them be more engaged gamers. 

Show Notes with links:

• Market data is in for March and it was the 6th highest March for new car sales since 1976 largely driven by pre-tariff buying. Our friends at Cars Commerce is making these insights available for free in their Q1 Industry Insights Report
  • March sales grew 11% YoY, pushing the Q1 average up 4.8% YoY despite January and February being up only 1%
  • Average new-car prices hold steady at ~$49,000 for the last 18 months which is holding at 30% higher than pre-pandemic levels.
  • Trade-in values are expected to rise in the coming months, fueled by anticipated increases in new-car prices driven by tariffs.
  • $30-$49K cars are now the fastest growing segment as tariffs threaten sub-$30K Inventory
    • 89% of sub-30k vehicles are made outside the US
    • Only the Honda Civic, Toyota Corolla, and the soon to be discontinued Chevy Malibu are made in the US
  • Tesla and non-Tesla EV search intensity is trending toward parity for the first time as Tesla searches dropped 11% YoY
    
    
    
• Retail sales made a strong rebound in March, rising 1.4% from February to $734.9 billion, with automotive leading the pack. But inflation fears and consumer sentiment paint a more complex picture for future spending.
  • Retail sales jumped 4.6% year over year, with a sharp March rebound after February's weak 0.2% gain.
  • Auto and parts dealers led the way, up 5.3%, tightening new and used vehicle inventories.
  • Inflation dropped for the first time since May 2020, but tariffs threaten future price hikes.
  • Consumer sentiment fell 11% in April to 50.8, the fourth straight monthly decline.
  • “The consumer is not feeling great given the confusion of policy announcements from Washington,” said NRF Chief Economist Jack Kleinhenz.
    
    
    
• Lowe’s is embedding itself directly into the sports gaming world through EA Sports titles as the home improvement giant targets younger, gaming-savvy audiences where they already spend time.
  • Lowe’s branding will appear in games like Madden, College Football 26, and EA Sports FC.
  • A “Stadium Pulse” feature will showcase Lowe’s during intense in-game moments.
  • Players can earn in-game perks tied to MyLowe’s Rewards in future Ultimate Team challenges.
  • eMarketer found that interstitial ads, or full-screen advertisements displayed during natural breaks in a user’s experience — such as between levels in a game — are often skipped by gamers, but opt-in video ads “that offer an incentive to click, like an in-game reward, can succeed, but it depends on how valuable the reward is.”

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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Episode #1019: On a special edition of the Automotive State of the Union, Paul and Kyle are joined by Senator Bernie Moreno of Ohio, the first and only auto dealer in the senate.

Senator Moreno had just finished presenting on the stage at the NY Auto Forum and spoke about how dealers can help their teams through troubling times, how they can get more involved in their local communities and what the future looks like for EVs.

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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Paul, Kyle, Michael, and Nathan woke up at 4am so they could be in NYC by breakfast to begin the day of coverage at the JD Power Auto Forum in Manhattan. They’ll be talking to industry experts and Dealers about the current Dealer response to tariffs, inventory, and people strategy. 

Show Notes with links:

• Auto Forum preview: Mike Cottone (Pres. Volvo), Randy Parker (CEO N.A. Hyundai/Genesis), Sen. Bernie Moreno, John Bozzella, Tom Doll

• President Trump is considering exemptions to steep auto part tariffs to ease the transition for carmakers shifting supply chains back to the U.S. This could offer short-term relief for manufacturers—and markets took notice.
  • Trump may delay tariffs on some imported auto parts.
  • Automakers say immediate tariffs would trigger layoffs and price hikes.
  • Shares of Ford, GM, and Stellantis rallied after Trump’s comments.
  • The 25% vehicle tariff and upcoming parts tariffs are part of his American manufacturing push.
  • “They need a little bit of time, because they’re going to make them here,” Trump said.
    
    
    
• Insurance premiums for Teslas are rising nearly three times faster than the rest of the market, fueled by high repair costs and increased vandalism. Despite Tesla’s efforts, the financial hit is landing squarely on owners' wallets.
  • Tesla insurance premiums jumped 22–29% across key models.
  • The Model Y saw the steepest rise—nearly 3x the national average.
  • Vandalism and expensive repairs are the main culprits.
  • Tesla’s own body shops haven’t yet eased premium hikes.
  • Average 2025 insurance cost for a Model 3: $4,364 per year.

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 #1017: Today we talk Polestar’s bold Tesla takedown with a $20K lease play, Jeff Bezos’ stealthy new EV startup with big aspirations, and GM’s pause on BrightDrop van production despite rock-bottom pricing.

Show Notes with links:

• A secretive EV startup based in Michigan is gaining attention fast. Funded by Jeff Bezos and stocked with talent from Ford, GM, Harley-Davidson, and Stellantis, Slate Auto is taking a bold swing at building a $25,000 electric pickup.
  • Founded in 2022 via Re:Build Manufacturing, Slate has already raised over $100 million and closed a Series B round.
  • The company is targeting late 2026 production near Indianapolis, building a minimalist two-seat pickup truck.
  • Slate’s strategy flips the usual EV script—start affordable and scale with accessories, not luxury trims.
  • Its product roadmap includes personalization, merchandise, and “Slate University” for customer-led upgrades.
  • “We built it. You make it,” is the company’s trademarked mission to empower buyers with customization.

• Polestar is going big to lure Tesla owners, offering a jaw-dropping $20,000 incentive for drivers to lease the new Polestar 3 luxury EV crossover—an offer good through the end of March.
  • The deal includes a $15,000 “Clean Vehicle Incentive” plus a $5,000 “Conquest Bonus” for current Tesla owners.
  • The offer applies only to leased 2025 Polestar 3s; delivery must be taken from existing inventory before March 31.
  • The Polestar 3 is sleek, spacious, and built in South Carolina with top-tier tech and sustainable materials.
  • Performance specs include up to 517 hp, a 0-60 time of 4.5 seconds, and up to 350 miles of range.
  • The Polestar offer says: “The Polestar 3 offers more comfort, tech, and style than the aging Model Y,”

• GM is hitting the brakes on production of its all-electric BrightDrop van at its Ontario facility due to soft demand—despite deep discounts and compelling incentives that still make it a standout EV deal.
  • Production at CAMI Assembly will pause April 14 and remain idle until October 2025 for retooling.
  • The move affects nearly 500 workers and drops the plant to a single shift post-relaunch.
  • Only 274 BrightDrop vans were sold in Q1 2025—a modest 7% increase year-over-year.
  • The announcement follows market jitters caused by Trump’s tariff threats and broader EV hesitations.
  • “It’s a crushing blow to hundreds of working families in Ingersoll,” said Unifor President Lana Payne.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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Today, Head Writer Chris Reeves joins the show to deliver hot takes on chicken, Thanksgiving and traditions, then pivots to talk about the Subaru Share The Love campaign and how Subaru of Jacksonville and Subaru Corporate raised a grand total of $205K for a local children's hospital just through car sales.

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 #1015: Today we’re diving into how global tensions are reshaping Tesla’s China strategy, why car buyers rushed showrooms ahead of auto tariffs, and why Harvard says better mentoring might be the secret to fixing retail’s revolving door of turnover.

Show Notes with links:

• Tesla has stopped taking orders for its U.S.-made Model S sedans and Model X crossovers in China as trade tensions between the U.S. and China flare up once again.
  • China will increase tariffs on U.S. goods to 125% on April 12, including autos.
  • Tesla’s Model S and X are built in Fremont, California, making them directly affected.
  • The option to order these models disappeared from Tesla's China site in early April.
  • Tesla’s Shanghai factory, which makes the Model 3 and Y, isn't affected by the new tariffs.
  • Model S and X made up fewer than 2,000 of Tesla’s 661,000+ Chinese sales last year.

• A spike in new car sales last month wasn’t just spring fever. According to Cloud Theory, auto shoppers raced to dealerships in March to beat looming tariffs.
  • March saw 1.31 million new vehicles sold — a 38% jump from February.
  • Cloud Theory attributes 153,000 of those sales to fear of impending price hikes from tariffs.
  • Average marketed prices rose $1,123 from late February through March with SUVs, full-size pickups, and heavy duty trucks seeing the most increase — thanks to V8 engines sourced from Canada.
  • Discounts and incentives dropped by $432 in March as OEMs braced for higher costs.
  • “While this led to very strong results in the short term… the longer-term effects will likely be highly detrimental,” said Cloud Theory’s Rick Wainschel.

• A new Harvard study says the key to lowering retail’s notoriously high turnover may be simpler than we think: invest in frontline workers’ career growth and mentorship.
  • Researchers found that most low-wage workers actually want to keep their jobs to avoid disruption in their lives — especially once they’re comfortable with their coworkers.
  • Over 60% said they’d stay with their employer if they saw a real path to advance, but with many supervisors overseeing up to 20 employees, personalized feedback and coaching are rare.
  • Employees often fear asking for promotions or raises, worried it might cost them their jobs.
  • A related McKinsey study also showed career development was the top reason non-managers wanted to leave. Their advice? Empower managers — because their impact cascades throughout the whole organization.

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 #1014: Today, we’re covering President Trump’s pause on reciprocal tariffs leaves auto imports still facing steep duties, while a record number of buyers turn to 84-month loans to afford today’s rising prices.

Show Notes with links:

• The auto industry is still squarely in the tariff crosshairs, even as President Trump backs off his broader reciprocal tariff plan. While a new 10% base tariff replaces most of the global duties, the 25% tariff on vehicles—and key materials like steel and aluminum—remains firmly in place.
  • Treasury Secretary Scott Bessent confirmed auto, steel, and aluminum duties are sector-specific and still active.
  • Despite ongoing auto tariffs, markets surged on the pause news—Tesla jumped 22.7%, GM rose 7.7%, and Ford gained 9.3%.
  • Industry leaders are pushing for relief with MichAuto’s Glenn Stevens Jr. advocating for protecting the international supply chain, calling the fragmentation “harmful” to competitiveness.
  • President Trump said he would consider exempting specific companies from tariffs, saying “We’re going to take a look at that.”

• More new-vehicle buyers are turning to 84-month loans than ever before, highlighting just how financially stretched today’s car shoppers remain.
  • According to Edmunds, 20% of Q1 new-vehicle loans were for 84 months, up from 16% in 2024 and 13% in 2019.
  • The average amount financed also jumped to over $41K compared to $32K in Q1 2019.
  • On the used side, 12% of loans ran 84 months, more than double the 5.3% seen in 2019, with an average of $28K financed.
  • Dealer Michael Cummings of I-10 Toyota: “I really, really don’t like going 84 months... it’s not healthy for the customers in the long run. It’s not healthy for us dealers in the long run.”

• A new report from Retail TouchPoints, citing Forrester’s 2024 U.S. CX Index, reveals that customer service is at its worst level since 2016. Despite access to advanced tech, only 3% of brands are truly customer-focused — and shoppers are losing patience.
  • 70% of customers say it’s hard to find in-store help; 83% of associates say their jobs are too complex.
  • Shoppers prioritize speed over flair—19% say quick item location drives return visits.
  • Brands like Tractor Supply and Dick’s use “store mode” apps to show real-time inventory and item locations.
  • GenAI is gaining traction: 84% of customer service managers plan to deploy AI agents in 2025, up from 42% in 2023.
  • “With greater customer experiences comes greater responsibility,” says CI&T’s Melissa Minkow.

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 #1013: We cover the impact of upcoming tariffs on auto repair and insurance costs, seasonal shifts in EV range, and a new Pew survey revealing a major divide between AI experts and public opinion.

Show Notes with links:

• Auto repair bills are on the verge of a sharp climb, and the clock is ticking. A 25% tariff on imported vehicles and auto parts, recently enacted by President Trump, officially takes effect May 3 — and it could add hundreds to even routine repair jobs.
  • Roughly 44% of OEM parts are imported, many from Taiwan and other countries not exempt under USMCA, according to Cox Automotive.
  • Experts say a standard brake job could jump $150–$200 per axle as parts hit with tariffs filter into the supply chain.
  • Many shops have just 4-6 weeks of parts inventory and dealerships like LaFontaine Auto are proactively contacting customers who previously declined service to lock in current prices before the May 3 deadline.
  • Insurance premiums may increase later in 2025 as claims costs go up, though experts say stolen vehicle rates and personal injury remain the bigger drivers.
  • “Go get it done today because we could be having some different conversations in a couple of weeks,” said Skyler Chadwick, director of product consulting at Cox Automotive.

• If you're planning a road trip in an electric vehicle, do it in July or August. A new report from Vaisala Xweather shows those are the best months for EV range across the U.S., with average distances peaking at 267 miles.
  • From June to September 2024, average EV range topped 250 miles in all 48 contiguous states and D.C.
  • In contrast, January 2025 saw every state fall below the 250-mile median, with North Dakota at the bottom with 171 miles.
  • Factors like air density, cabin heating, wind, and snow contribute to winter range dips.

• A sweeping new Pew survey highlights a major disconnect between AI experts and the general public. While most experts see AI as a personal and societal benefit, the average American is more worried than excited — and trust is in short supply.
  • 76% of AI experts believe AI will benefit them personally, while just 24% of the public feels the same.
  • Only 11% of Americans are more excited than concerned about daily AI use; 51% are more concerned than excited.
  • Both groups agree: the government can’t be trusted to regulate AI effectively.
  • 83% of Americans say AI won’t make them more productive, and 94% say it won’t make them happier.
  • I asked ChatGPT what it thought of this article: “The gap between how experts and everyday people view AI isn’t just about knowledge — it’s about experience. I can process data and generate insights, but I don’t live in a world where AI decisions impact my job, privacy, or sense of a

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Episode #1012: Today we’re talking about Lithia Motors’ internal challenge to boost service growth, FM Capital’s $240M bet on auto tech startups—with strong dealer backing, and the mounting issues facing Tesla’s Cybertruck.

Show Notes with links:

• Facing underperformance in its service and parts growth, Lithia Motors is turning inward, challenging its frontline teams to raise the bar and reclaim momentum in a key revenue area.
  • Lithia’s Q4 same-store service and parts revenue grew 3.4%, falling short of peers like Sonic (10%) and Penske (6.2%).
  • CEO Bryan DeBoer emphasized it's not a technician shortage, but a “mindset issue” among service advisers and managers.
  • The company is expanding its Partners Group program to include department managers, offering stock incentives tied to higher performance standards.
  • COO Adam Chamberlain sees aftersales as a major 2025 growth driver, but warns current operations sacrifice customer pay for warranty work.
  • DeBoer: “There’s been way too soft of management and lip service... Sixty to 90 days is our new mantra,”

• Venture firm FM Capital has closed its fourth fund at $240 million, aiming to fuel retail and mobility tech across the auto industry—with major backing from dealership groups.
  • The fund surpassed its $200M target despite a tough venture capital environment.
  • Investments will target AI, fleet tech, autonomy, connectivity, and energy transition.
  • 125 investors participated, including 56 dealership groups representing over 1,100 stores. Holman and Cox Automotive returned as key backers in this round.
  • Chase Fraser, Managing Partner of FM Capital: “Dealerships really respect entrepreneurs because they are entrepreneurs themselves. They want to get involved. They want to mentor some of these entrepreneurs. They want to test their products. They want to give them feedback because who knows better than the user?”

• Tesla’s Cybertruck is facing a brand-new problem—its maker doesn’t want it back. Owners looking to trade in their trucks are getting turned away, exposing deeper trouble for the high-profile pickup.
  • Tesla is reportedly refusing to accept Cybertrucks as trade-ins, citing resale struggles and declining demand.
  • The company has a backlog of nearly 2,400 unsold units worth $200M, with used values down 55% year-over-year.
  • Some frustrated owners are resorting to Lemon Laws just to offload the vehicle.
  • Other dealers are low-balling owners or avoiding Cybertrucks altogether due to market instability.
  • A Cybertruck recall this year revealed that only 46K of the vehicles have been delivered so far.

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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