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Happy Super Bowl parade day, Eagles fans! Happy Valentine’s Day to the rest of you! Today, we’re breaking down how Chinese OEMs are able to build lower cost vehicles with more speed than traditional OEMs. Plus, we look at Toyota’s plans for more inventory in 2025 and a history of Valentine’s Day candy.

Show Notes with links:

• A teardown analysis by Caresoft Global Technologies reveals that Chinese automakers are rapidly surpassing the Detroit 3 in cost efficiency, speed, and innovation. While legacy automakers struggle with outdated manufacturing methods, Chinese brands are cutting costs, streamlining production, and expanding aggressively into global markets.
  • Detroit automakers use 12 rare-earth magnets and steel brackets to secure headliners, while Chinese automakers achieve the same result with inexpensive adhesive strips; similarly, Detroit 3 EVs rely on costly aluminum braces, whereas Chinese EVs use lighter, more affordable plastic or thin metal brackets.
  • Meetings with Chinese automakers take one week compared to two months with German OEMs and nine months for a purchase order from a legacy automaker.
  • At a Caresoft presentation in China, 700 employees showed up on a Saturday—a level of commitment rarely seen in the U.S.

• Toyota is pushing for increased production and sales in 2025 after a strong 2024, despite supply chain hurdles and stop-sales. The company saw record accessory sales, nearly record parts sales, and a 3% increase in U.S. light-vehicle sales, totaling 1.99 million units.
  • Toyota built over 2 million vehicles in North America in 2024 and plans to increase output in 2025 to improve inventory levels.
  • Toyota dealers have adapted to a lean inventory, high-throughput model, preselling vehicles and managing allocations efficiently.
  • Hybrids and plug-in hybrids made up 43% of U.S. sales in 2024, up from 29% in 2023. Toyota expects 50%+ in 2025, rising to 60-70% long-term as its North Carolina battery plant boosts hybrid production.
  • After weather disruptions at the NADA Show in January, Toyota executives and retailers met virtually this month, where brand head Dave Christ emphasized the company’s focus for the year: “Our message [for 2025] is very simple: It’s build more and sell more.”

• Valentine’s Day remains a battle between flowers and candy, with 56% of celebrants purchasing candy and 40% buying flowers in 2024. Despite candy's popularity, flower sales ($2.9B) edged out candy sales ($2.5B). Over the years, candy brands have introduced creative and sometimes bizarre Valentine’s treats.
  • Here are some key moments in Valentine’s Candy History:
  • 1868: Cadbury debuts the first heart-shaped candy box.
  • 1902: Necco produces its first conversation hearts with sayings like “Be Mine.”
  • 2019: Smarties Candy Co adds the sayings “Swipe Right,” “Text Me,” and “YOLO” to their

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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