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9 days to NADA and you can feel the anticipation around the social media halls. Today, we’re talking about how the US Commerce Department is banning Chinese and Russian car hardware and software, Google’s new automotive AI agent debuting in the Mercedes CLA and Target changing production timelines to match social media trends.

Show Notes with links:

• The U.S. government has finalized a sweeping ban on the use of Chinese and Russian-made hardware and software in internet-connected vehicles to bolster national security and protect consumer privacy.
  • The Commerce Department will ban Chinese and Russian connectivity hardware in 2030 models and driving software from 2027 models.
  • Manufacturers tied to China and Russia are also prohibited from selling connected vehicles in the U.S.
  • Commercial vehicles, such as trucks and buses, are not yet covered but will be addressed soon.
  • Secretary Gina Raimondo stressed the ban as a measure to protect national security and American privacy. “This is a targeted approach to ensure we keep PRC and Russian-manufactured technologies off American roads,” 

• Google Cloud has unveiled its Automotive AI Agent platform, debuting in the new Mercedes CLA. The advanced system promises seamless, conversational interactions tailored for driver with enhanced natural language processing.
  • The next-gen MBUX Virtual Assistant has four “personality traits” (natural, predictive, personal, empathetic) and can ask clarifying questions to improve responses.
  • Powered by Google’s Gemini and Vertex AI, it offers real-time Google Maps updates, restaurant reviews, recommendations, and handles multi-turn dialogue.
  • Older Mercedes models with MBUX Voice Assistant may receive updates incorporating ChatGPT and Bing, though without full conversational AI features.
  • “This is just the beginning of how agentic capabilities can transform the automotive industry,” said Sundar Pichai, Google CEO.

• Target is speeding up its production process, slashing timelines from 27 weeks to just eight, to keep pace with consumer demands and trends driven by digital giants like Shein and Temu.
  • Target’s new model responds to rapidly shifting social media trends, aiming to match fast fashion’s quick go-to-market strategies.
  • For example, Target recently pivoted from decorative bows to cherry-themed holiday apparel, responding to consumer demand in time for the season.
  • Innovations in supply chain and design allow Target to cut product development cycles by nearly 70%.
  • “The next chapter in retail is going to be about innovation, newness, creativity,” said Rick Gomez, Target’s Chief Commerce Officer.

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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