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On this Tuesday, we dive into GM’s historic EV sales surge in China, explore how AI-powered voice assistants are changing the in-car experience, and look at Starbucks’ new CEO's strategy to cut discounts and bring back the coffeehouse charm.

Show Notes with links:

• General Motors has achieved a significant milestone in China, selling more electric and hybrid vehicles than ICE cars for the first time in Q3 2024.
  • Total deliveries in China grew by 14.3% to more than 426K vehicles, across brands like Buick, Cadillac, Chevrolet, and SAIC-GM-Wuling, with over 224K being new energy vehicles (NEVs).
  • The SAIC-GM-Wuling joint venture led GM’s EV success, contributing 328K vehicles, driven by models like the Wuling Hong Guang MINI EV and BinguoEV.
  • Buick’s GL8 PHEV minivan hit a milestone as China’s first premium multi-purpose vehicle to surpass 2 million units in sales, with 45% of its Q3 sales coming from the plug-in hybrid version.
  • In the U.S., GM only delivered 32,000 EVs in Q3.
  • Steve Hill, GM Senior Vice President, remarked: “We are building momentum for both sales volume and market share in China.”

• Automakers are struggling to keep control of the in-car experience as Apple and Google push their AI-powered voice assistants deeper into vehicles, shaping how drivers interact with their cars.
  • Apple and Google’s voice assistants are handling tasks like navigation, calendar access, and smart home control, using vast amounts of customer data to deliver highly personalized experiences.
  • Automakers are losing ground because they don’t have access to the same level of consumer data, which tech giants use to make voice interactions smoother and more intuitive.
  • While companies like SoundHound AI offer alternatives, most automakers are outsourcing voice tech, avoiding the challenge of building their own.
  • “Even within the vehicle, you're competing with what's on your mirror link or phone,” said Aakash Arora of Boston Consulting Group. Automakers are "not only competing with other OEMs, you may be competing with your own apps."

• Under new CEO Brian Niccol, Starbucks is cutting back on its recent discount-heavy strategy, aiming to return to its roots with a focus on premium coffee and customer service.
  • Starbucks had introduced promotions like buy one, get one free and 50% off discounts to boost sales, but the results were underwhelming.
  • The company plans to reduce promotions during the holiday season, instead focusing on seasonal drinks through advertising.
  • Niccol took over as Starbucks CEO in September 2024, following declining sales and customer complaints and aims to restore Starbucks' reputation as a community-focused coffeehouse, with plans to revamp stores for a better customer experience.
  • "We have an opportunity to make the store experience better for our partners an

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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