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Welcome to Tuesday! Paul’s hanging out at Vincue Unleashed, Kyle’s at his desk and we’ve got news to talk about, like how the US’s new rule on Chinese software in cars could affect OEMs, how Stellantis is going about its CEO search, and how Google is making Gemini a part of all Workspace accounts.

Show Notes with links:

• The U.S. Commerce Department is considering a new rule that could block automakers like General Motors and Ford from importing vehicles made in China. The move is part of a broader effort to curb the use of Chinese technology, particularly software and hardware, due to national security concerns.
  • GM’s Buick Envision and Ford’s Lincoln Nautilus, both assembled in China, would be directly impacted and the rule could also affect other automakers, including Volvo and BYD.
  • GM sold about 22,000 Envisions, and Ford sold 17,500 Nautilus crossovers in the U.S. during the first half of 2024.
  • Automakers would need to move production outside of China or apply for specific authorizations to continue selling affected models.
  • Liz Cannon from the Commerce Department said, "Any vehicle manufactured in China and sold in the U.S. would fall within the prohibitions."
• Stellantis announced it has begun the search for a successor to CEO Carlos Tavares, with his contract expiring in January 2026. While Tavares has led the company since 2021 and made it highly profitable, recent issues in North America are driving the company to refocus.
  • The CEO search is routine, but the company faces pressure due to declining North American sales and profits.
  • In response, Stellantis is slashing vehicle inventories by 100,000 units by early 2025 and has already reduced 40,000 vehicles.
  • CFO Natalie Knight said inventory and pricing discipline are key strategies to weather the EV transition, with some models, like the Jeep Grand Cherokee and Compass, seeing price cuts.
  • Tavares has implemented aggressive cost-cutting measures, including job cuts and a plan to source 80% of parts from low-cost countries by 2028.
  • “We are living in very difficult times where there are going to be winners and losers, and a lot about being the winner is being the last man standing," Knight said
• Google is making its Gemini AI a central part of its Workspace productivity suite, a move that could significantly boost the chatbot’s user base across various industries.
  • Gemini AI will now be included in Workspace Business, Enterprise, and Frontline plans starting in Q4, eliminating the need for a separate Gemini add-on, streamlining AI use for Workspace customers.
  • Google assures that Gemini won't use organizational data to train its AI model and complies with enterprise-grade privacy standards like SOC 1/2/3 and ISO 27701.
  • Workspace Administrators will manage data storage for generated responses and user promp

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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