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Episode #1180: Fresh off a global adventure, Paul and Kyle return with stories from Kazakhstan, a look at why destination fees are climbing faster than car prices, and how Rivian and GM are tightening up their EV operations as the market cools.

• Destination fees — the unavoidable “shipping” charges tacked onto every new vehicle — are climbing faster than sticker prices. Once a minor line item, these fees have ballooned across brands, marking the steepest industrywide increase in at least a decade as automakers quietly offset rising costs and tariffs.
  • Average destination fees jumped 8.5% for 2025 models, the biggest one-year spike in 10 years, according to Edmunds.
  • Fees have risen 27% since 2021, now averaging $1,549, up from $1,220 just four years ago.
  • Some models saw even sharper hikes — Porsche up 48%, Ford up 39%, Stellantis up 35%.
  • Analysts point to inflation, heavier vehicles, and new tariffs as key cost drivers.
  • “It’s another place where they can increase the price without increasing the price,” said Sam Fiorani of AutoForecast Solutions.

• As the EV market cools and cost pressures rise, both Rivian and GM are trimming teams to stay efficient. Rivian’s cutting hundreds after the loss of key EV tax credits, while GM is reducing salaried positions tied to design and development as part of a broader restructuring.
  • Rivian is laying off 4.5% of its workforce — about 600 employees — as it consolidates operations in sales, service, and marketing.
  • CEO RJ Scaringe said the move reflects a “changing operating backdrop” as demand softens following the expiration of the $7,500 EV credit.
  • Rivian will continue investing in its next-gen R2 platform to reach a broader market beyond its luxury R1 lineup.
  • GM confirmed more than 200 white-collar job cuts in Detroit, mostly in its design engineering and CAD teams.
  • The automaker is also managing $1.6 billion in EV-related write-downs and tariff costs as it shifts strategy to protect margins amid a slower adoption curve.

0:00 Intro with Paul J Daly and Kyle Mountsier
1:25 More Than Cars just got back from Kazakhstan
7:42 Destination Fees Skyrocket On 2025 Models
10:33 Rivian Lays Off 600, GM Cuts 200

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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