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Episode #1049: Today we’re diving into Toyota’s bold software move with the redesigned RAV4 Hybrid, watching Tesla and Waymo duel for robotaxi dominance, and seeing how Home Depot is holding the line on prices as tariffs rattle retail

Show Notes with links:

• Toyota’s sixth-gen RAV4 Hybrid isn’t just sleeker—it’s smarter. As the first model to feature the all-new Arene operating system, the global bestseller is now a testbed for Toyota’s software-first future.
  • Arene is built by Woven by Toyota, the automaker’s in-house software arm and made up of three core components: Arene SDK (to build apps and features), Arene Tools (to virtually test them), and Arene Data (to collect and use real-world driver feedback).
  • In practice, that means Toyota can push OTA updates that improve safety systems like Toyota Safety Sense 4.0 based on global user data, often updating every few weeks or months, mirroring how smartphone OS updates roll out.
  • The SDK powers the new voice agent and center display; the data system creates a feedback loop that improves regional performance by learning from users in 180 countries.
  • “Software can be an added layer where we can evolve the car over time,” said Woven CTO John Absmeier. “We help your Toyota grow old with you.”

• Tesla and Waymo are tackling robotaxis from different angles—Tesla with bold camera-only tech, and Waymo with sensor-packed precision. But a real-world test in San Francisco handed one of them a clear win.
  • Waymo’s service, active since 2024, uses 29 cameras, 5 lidars, and 6 radars in Jaguar I-PACEs.
  • Tesla’s FSD Supervised software, tested in a Model 3, relies solely on eight external cameras—with its FSD Unsupervised version launching in Austin next month.
  • On winding SF roads from Twin Peaks to Chase Center, both systems performed well—until Tesla's FSD ran a red light at a busy intersection.
  • The Waymo delivered a confident, human-like ride, including a lane change that “seemed like it was just tired of waiting.”
  • “It's got New York cab driver energy,” said tester Alistair Barr of Waymo’s proactive driving style.

• As tariffs squeeze the retail sector, Home Depot is leaning into its U.S.-based supply chain and scale advantage to keep prices steady—even as competitors like Walmart warn of price hikes.
  • Over half of Home Depot’s inventory is sourced domestically, with imports on the decline.
  • CFO Richard McPhail says no single foreign country will represent more than 10% of purchases within 12 months.
  • Q1 2025 revenue rose 9.4% to $39.9B, with average transaction values ticking up slightly to $90.71.
  • The company saw 394.8 million transactions, a 2.1% increase year-over-year.
  • “We saw continued customer engagement across smaller projects,” said CEO Ted Decker.

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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