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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.

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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