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Episode #1103: Today we’re talking about backlash against stop-start tech, Tesla’s rocky second quarter and robotaxi dreams, and Southwest’s historic shift to assigned seating.

Show Notes with links:

• Stop-start engine systems, once praised for fuel savings, often slandered by consumers, are now catching flak from both the EPA and frustrated drivers—prompting new questions about their future.
  • 62% of 2023 vehicles used stop-start to claim EPA efficiency credits around $30 per vehicle
  • A new Trump-era law which eliminated CAFE standards and key penalties is reducing incentives for automakers.
  • Consumers often disable the feature, citing annoyance and wear concerns even going as far as installing aftermarket disablers from Amazon which trick the system while some drivers rely on pedal finesse.
  • “If there’s no CAFE program that can be enforced, and there’s not a greenhouse gas standard that requires improvement, that would remove the incentive for automakers to put in this technology,” said Chris Harto, senior policy analyst at Consumer Reports
  • Lee Zeldin, head of the EPA recently tweeted: Start/stop technology: where your car dies at every red light so companies get a climate participation trophy. EPA approved it, and everyone hates it, so we’re fixing it.

• Tesla’s Q2 earnings took a hit, with profits and sales both sliding amid fading incentives, slowing EV demand, and political headwinds. Elon Musk says the future rides on autonomy.
  • Net income fell 16% to $1.17B; auto revenue dropped 16% as deliveries declined.
  • Tesla’s $439M in regulatory credit sales was half of last year’s, and shrinking fast.
  • A lower-priced Model Y and stripped-down Cybertruck aim to revive sales.
  • Tesla’s invite-only robotaxi service in Austin may expand to half the U.S. population by year’s end if approvals move forward quickly according to Musk
  • “We probably could have a few rough quarters. I’m not saying we will, but we could.”

• Southwest Airlines will say goodbye to open seating for the first time in its history, launching assigned seats and a tiered boarding system starting January 27.
  • Ticket sales for assigned seats begin July 29; full rollout hits early next year.
  • Eight new boarding groups will replace A-B-C lines, prioritizing loyalty and fare class.
  • Premium seat options—like extra-legroom—are coming, but prices are still under wraps.
  • About 25% of the fleet is already reconfigured with the new seat layout.
  • “We’re optimizing for efficiency… while taking care of our most loyal customers,” said Southwest’s Stephanie Shafer Modi.

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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