The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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We’re back at our desks after some time on the road. Today we’re talking about Honda’s plans to double EV range while reducing cost and size, a new study that says price parity between EV and ICE could come as soon as 2026, and the response to an AI-altered Coca-Cola ad.

Show Notes with links:

• Honda aims to double the driving range of its EVs by the late 2020s through the use of innovative all-solid-state batteries.
  • Research head Keiji Otsu describes the initiative as a “game-changer” that could redefine EV capabilities and consumer expectations.
  • A $277 million pilot production line in Japan is set to manufacture these advanced batteries, targeting a 50% reduction in size and a 25% cost reduction by the mid-2020s.
  • This aligns with Honda's broader goal of producing over 2 million EVs annually by 2030 and achieving 100% EV and fuel cell vehicle sales globally by 2040.
  • Talks of collaboration with Nissan have emerged, with Otsu saying “There may be areas where we can work together” on joint material procurement.

• A new study predicts EV battery prices are on track to plummet nearly 50% by 2026, powered by advancements in technology and manufacturing. This shift is closing the gap between EVs and gas-powered cars faster than expected.
  • Goldman Sachs predicts battery prices will fall from $149/kWh in 2023 to $80/kWh by 2026 and $60/kWh by 2030.
  • To put it in perspective, a 100 kWh battery for a large SUV could cost around $6,000, while an 800 kWh battery for a semi-truck might be priced under $50,000.
  • Innovations like "cell-to-pack" design simplify battery construction, boosting energy density and reducing production costs.
  • Lithium iron phosphate (LFP) batteries, prized for durability and cost-efficiency, could claim 45% market share by 2025.
  • EVs are expected to reach cost parity with gasoline vehicles as early as 2026, even without government incentives.
  • “Rapid battery price drops and smarter designs will make EVs a mainstream option,” says Nikhil Bhandari of Goldman Sachs Research.

• Coca-Cola’s decision to remake its iconic 1995 “Holidays Are Coming” ad using AI has sparked both controversy and curiosity. Critics debate the ad’s aesthetics, while Coke sees it as a bold step in exploring generative AI’s potential for creativity and efficiency.
  • Three studios used AI to reinterpret the classic ad with tools like Runway and Leonardo.
  • Critics claim the new ads “look fake” and lack the original’s charm, sparking backlash online.
  • Despite critiques, market testing showed positive consumer responses with high emotional impact.
  • AI allowed hyper-localized content, adapting the ad for 12 U.S. regions with tailored details.
  • “We balance creative humans with new technology,” says Pratik Thakar, Coke’s head of generative AI.

Hosts: Paul J Daly and Kyle Mountsier

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Welcome to Wednesday as we talk about the likely EV regulation rollbacks on Trump’s Day One. We also talk about a Jaguar rebrand that’s unlike anything we’ve ever seen, as well Delta’s new initiative to serve ShakeShack on first class flights. 

Show Notes with links:

• Sean Duffy has been nominated to head the U.S. Department of Transportation by President-elect Trump, with a vision to lead America into a "golden age of travel." His nomination brings significant implications for automotive and transportation policies.
  • A former congressman and Fox News host, Duffy is expected to roll back EV-supportive policies, aligning with Trump’s “Day One” initiatives.
  • EV advocates have expressed concerns about potential climate change impacts under his leadership.
  • He advocates for right-to-repair laws, citing high repair costs linked to automaker patent restrictions and may spearhead advancements in autonomous vehicle policies, including self-driving trucks.
  • “It is imperative a federal policy framework on AVs be put in place,” said Jeff Farrah, CEO of the Autonomous Vehicle Industry Association.

• Jaguar is charging into a bold new era as it prepares to go fully electric by 2026. Alongside plans for an all-electric lineup, the automaker has unveiled a reimagined logo and identity that apparently attempts to blend its classic heritage with modern flair.
  • The new logo spaces out the letters and mixes upper and lowercase for a sleek look.
  • Jaguar leans on its founder’s motto, “A Jaguar should be a copy of nothing,” now simplified to “Copy Nothing.”
  • Taglines include “delete ordinary” and “live vivid”, with Pop Art-inspired ads featuring very serious, very colorful models.
  • Chief Creative Officer Gerry McGovern says it’s about capturing Jaguar’s essence for today’s world: “This is real,” he told reporters, “not the white stuff.”
  • Their first electric model, a 2026 super-GT, promises exciting new designs.

• Delta Airlines is taking in-flight dining to the next level with a delicious new partnership with Shake Shack. Starting December 1, passengers in First Class on select flights will be able to enjoy Shake Shack’s iconic Cheeseburger while cruising at 30,000 feet.
  • The burger will first be available on Boston flights, with plans to expand nationwide by 2025.
  • The Shake Shack Cheeseburger features 100% Angus beef, a potato bun, and customizable toppings like lettuce, tomato, and their famous ShackSauce and the meal comes with chips, a Caesar salad, and a dark chocolate brownie.
  • Passengers can pre-select their burger up to 24 hours before departure through the Fly Delta app.
  • This collaboration builds on Delta’s partnership with Union Square Hospitality Group, founded by Shake Shack creator Danny Meyer.
  • Shake Shack’s Michael Kark says, “We’re proud to partner with Delta to elevate the in-flight dining experience. It’s a great way to bring our iconic cheeseburger to new heights!”

Hosts: Paul J Daly and Kyle Mountsier

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We’re live in Petersburg VA this morning as we’re shooting the next episode of More Than Cars. Today, we’re talking about the latest Cars Commerce Industry Insights and what it means for supply and demand, how BYD has produced its 10 millionth new energy vehicle, and how this Thanksgiving could be a record for travel.

Show Notes with links:

• The October Cars Commerce Industry Insights Report reveals that new vehicle supply is way up, while demand has only seen a small increase.
  • New-car demand is up only 2%, while new vehicle supply is up a staggering 26.4% YOY, and new-car days live up 37.4%
  • YOY new-EV supply is up a whopping 35%, which makes those production shutdowns make sense
  • Used-car inventory below $20k is the only price category growing YOY, but remains far below stock levels prior to 2021
  • Used EVs receive 5.5x more searches than new EVs. The average list price of a used EV is down -9.1% YOY and searches are up 36.6% YOY
    
    
    
• BYD is marking a major milestone as the first automaker to produce 10 million new energy vehicles (NEVs). The EV leader is riding a wave of growth and expanding globally. Key points include:
  • BYD has reached 10 million NEVs just three years after producing its 1 millionth vehicle
  • October sales hit over 500,000 vehicles, marking the fifth consecutive record month.
  • The company is gaining on global giants, having outsold Nissan and Honda, and is closing in on Ford.
  • Global expansion is in full swing, with new plants in Thailand, Hungary, Brazil, Pakistan, Turkey, and Mexico.
  • BYD’s EVP, He Zhiqi, says the company is scaling fast, hiring 200,000 employees recently to meet surging demand.

• Turkeys won’t be the only thing looking to take flight this holiday season as Thanksgiving weekend is set to be one of the busiest travel weekends in history.
  • AAA predicts 79.9 million travelers, a 1.7 million increase from 2023.
  • 71.7 million will travel by car, with lower gas prices expected under $3 per gallon.
  • Airlines anticipate a surge, with 31 million passengers projected, a 2 million increase from last year.
  • United Airlines, American Airlines, and Delta all expect record-breaking passenger numbers.
  • Stacey Barber, vice president of AAA Travel, said, “Thanksgiving is the busiest holiday for travel, and this year we’re expecting to set new records across the board, from driving to flying and cruising.”

Hosts: Paul J Daly and Kyle Mountsier

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It’s a busy week around the ASOTU halls as we’re in Florida for MRC and then Virginia for MTC. Today we’re covering how Carvana is scaling its capacity through the ADESA auction network, how Teslas topped a study on the most fatal cars on the road and the tech hiring slowdown.

Show Notes with links:

• Carvana is reimagining its operations through strategic integrations of the ADESA auction network, emphasizing vertical integration and expansion.
  • The used car retailer has converted 3 ADESA sites into multifunctional hubs in 2024, with plans for a 6th site by year-end and introduced Carli, a vehicle tracking system optimizing reconditioning and inventory management.
  • Carvana has increased retail gross profit per vehicle to $3,497 in Q3 2024, up 30% year over year.
  • CEO Ernie Garcia highlights the company’s capacity for processing 3 million vehicles annually with minimal capital expenditure.
  • "Adding capacity without significant time or expense — that’s the key to efficient growth," says Christina Keiser, Carvana EVP of Strategy.

• A recent iSeeCars study revealed that Tesla vehicles had the highest fatal crash rates among automakers in the U.S., raising questions about how they were driven and their design.
  • Teslas led with 5.6 deaths per billion miles driven, double the industry average of 2.8. Kia (5.5) and Buick (4.8) followed as other high-fatality automakers.
  • The Tesla Model Y recorded a 10.6 fatal crash rate, nearly five times the SUV average, while the Model S rate was twice the average at 5.8.
  • Despite these figures, Teslas scored highly in IIHS and NHTSA crash tests.
  • Analyst Karl Brauer linked the high rates to driver behavior: “The biggest contributor to occupant safety is avoiding a crash...and the biggest factor in crash avoidance is driver behavior.”

• The post-pandemic hiring landscape reveals a sharp slowdown in tech roles, with oversupply, automation, and changing priorities leaving many professionals facing a white-collar recession.
  • White-collar roles like IT, engineering, and marketing fell 20%-32% from 2018-2024
  • AI tools, like ChatGPT, have enhanced productivity, reducing the need for new hires in roles such as coding, where efficiency has skyrocketed.
  • Sectors like healthcare bucked the trend, increasing hiring by 10% to address burnout and staffing shortages, while social services remained stable.
  • Job openings now receive an average of 222 applications—nearly three times as many as at the end of 2021, overwhelming companies and making it harder for candidates to stand out.
  • Job searches are taking longer, averaging 66 days “There’s so much angst, [among job seekers]” noted Jon Stross of Greenhouse, 

Hosts: Paul J Daly and Kyle Mountsier

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Nathan and Chris host the show this Saturday morning and talk about how Sioux City Ford Lincoln closed on Veteran's Day so they could do community service for the veterans in their community. 

Hosts: Paul J Daly and Kyle Mountsier

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We’re almost at the end of another week, and today we’re covering how it seems that the Trump team is getting ready to eliminate the EV tax credit. Plus, GM is working with EV owners in Texas to offer free nighttime EV charging, and how on-the-job training is becoming harder to find.

Show Notes with links:

• The Trump transition team is set to eliminate the $7,500 EV tax credit in an upcoming tax reform, a shift that could hinder the U.S.'s EV progress. Despite Tesla’s reliance on this subsidy, representatives of the company appear supportive of the repeal.
  • Killing the credit aligns with Trump’s campaign pledge to end Biden's "EV mandate."
  • Tesla, though impacted, may benefit as the change would likely harm its competitors more, especially legacy automakers like GM.
  • Energy transition discussions are led by oil magnate Harold Hamm and North Dakota Governor Doug Burgum.
  • Eliminating the subsidy could free up funds to extend Trump’s major tax cuts.
  • The Alliance for Automotive Innovation stressed the importance of credits, calling them "critical to cementing the U.S. as a global leader."

• General Motors is collaborating with Reliant Energy to offer free nighttime charging for Chevy EV owners in Texas. The initiative, aimed at making EV ownership more affordable, leverages renewable energy credits to support sustainable charging.
  • Chevy owners enrolled in Reliant’s EV plan get free charging from 11 PM to 6 AM, offset through monthly bill credits.
  • Users must specify an EV on GM Energy’s Smart Charging Portal to qualify.
  • This promotion is part of a broader trend as automakers like Ford offer perks to attract hesitant EV buyers.
  • GM and Reliant claim charging is renewable, thanks to Renewable Energy Certificates (RECs), though these credits have been criticized for masking fossil fuel use.

• In many companies, new hires and even seasoned workers are left struggling due to inadequate training. With limited mentorship and lack of clear guidance, employees are increasingly expected to "figure it out" alone.
  • High job turnover, hybrid work, and cost-cutting have weakened structured training.
  • Only 50% of Gen Z workers report having mentors, despite 83% valuing it.
  • Less than half of employees feel they fully understand their job expectations, per Gallup.
  • Tech-based training has limitations, while mentorship apps often see low engagement.
  • Kenneth Matos of HiBob warns that cutting training leaves junior employees overwhelmed and managers burnt out.

Hosts: Paul J Daly and Kyle Mountsier

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It’s Thursday, and we’re almost halfway through November. Today, we’re talking about a CDK study that says car buying got harder for consumers in October, how Tesla has exhausted its Cybertruck reservation list and OpenAI’s autonomous Operator that’s coming to a computer near you.

Show Notes with links:

• According to a recent CDK Global study, shoppers struggled a bit more in October with finding the right car as inventory disruptions such as stop sales, model turnovers, and natural disasters took a toll on the Ease of Purchase.
  • 87% of buyers reported an easy car-buying experience, down from September’s 89% and August’s record 93%.
  • Only 49% of shoppers could buy their preferred vehicle on the lot, down from 54% in September, with the test-drive ease rate also slipping to 78%—a rare dip below 80%.
  • Complaints about "too many things to choose from" and excessive paperwork led to a slight drop in ease for form completion, falling to 70% in October from 72% in September.
  • The time it took to finalize purchases increased for 32% of buyers, up from 25% in September. Just 15% experienced a quicker purchase process, a significant drop from last month’s 25%.

• Tesla has begun offering Cybertrucks directly from new vehicle inventory, indicating that its once-massive reservation backlog may have dwindled.
  • U.S. buyers can now order and receive a Cybertruck in roughly a week, suggesting Tesla has exhausted its initial backlog.
  • Despite over a million initial reservations, Tesla has only delivered approximately 50,000 Cybertrucks in the United States so far.
  • Changes in the production model, including a higher price and lower range than originally promised, may have deterred some reservation holders.
  • Tesla has expanded Cybertruck deliveries to Mexico and Canada to match rising production capacity.

• OpenAI is set to release a new AI agent, codenamed "Operator," designed to take actions on users' computers, like writing code or booking travel. The tool is expected to launch as a research preview in January.
  • Operator will be available through OpenAI’s API, allowing developers to integrate it into various applications.
  • The tool aligns with an industry trend toward AI agents capable of completing complex, multi-step tasks autonomously.
  • Competitors like Anthropic, Microsoft, and Google are also developing similar agent tools to manage tasks for users.
  • OpenAI’s Sam Altman has hinted at this shift, calling it the next “giant breakthrough” in AI during a recent Reddit AMA.

Hosts: Paul J Daly and Kyle Mountsier

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Today’s the day when we release More Than Cars episode 4: Mohawk Chevrolet at 1PM! Oh and we’re also talking about Rivian and VW’s finalized joint venture, how the UAW is struggling to gain momentum following last year’s big wins and how Dodge is adjusting its EV and ICE muscle car plans.

Show Notes with links:

• Rivian Automotive and Volkswagen Group have finalized a significant joint venture worth up to $5.8 billion to advance electrical architecture and software for future EVs, utilizing Rivian's current tech.
  • Since the venture was announced in June, VW’s investment in Rivian has grown from an initial $5 billion.
  • Rivian brings its advanced EV technology, while VW contributes its vast manufacturing scale.
  • The initial phase includes deploying Rivian’s system in VW vehicles, launching Rivian’s R2 by 2026 and VW's Scout brand vehicles by 2027.
  • The partnership focuses on electrical architecture and software, not hardware, though Scout Motors CEO Scott Keogh hinted Scout’s EVs will leverage the tech.
  • “By combining complementary expertise, we aim to reduce costs and accelerate new tech,” VW’s Oliver Blume stated.
  • This venture is crucial for Rivian’s financial strategy, as it faced a $1.1 billion Q3 loss amid slowed revenue and production.
• Outspoken UAW President Shawn Fain is facing mounting obstacles in organizing nonunion U.S. factories owned by Toyota, Hyundai, Mercedes, and others amid a shifting political and corporate landscape.
  • Following historic labor deals with the Big 3, Fain aimed to build on momentum, targeting new factories, especially in the South.
  • Despite a spring win at VW, recent efforts at Toyota and Hyundai encountered resistance, as these automakers raised wages to counter unionization drives.
  • Initially focusing on a rapid approach, Fain encouraged online union pledges and fewer traditional one-on-one meetings. At Mercedes in Alabama, a quick vote resulted in a narrow loss, with 56% against unionizing.
  • “It wasn’t like we got annihilated there,” Fain said. “That was a very, very close election.”
  • Fain emphasized the importance of the UAW’s first contract with VW in Chattanooga, saying, “We won in a place where no one said we could win. Now, the argument is, ‘We’re not winning fast enough,’ when initially it was, ‘We can’t win.’”

• Dodge is moving up the launch date of its gas-powered Charger Sixpack to early summer 2025, five months ahead of schedule, in response to strong demand for traditional internal combustion muscle cars.
  • The decision was influenced by anticipated regulatory shifts under President-Elect Donald Trump, potentially easing EV mandates.
  • Originally planned for late 2025, the ICE Charger Sixpack is now set to arrive ahead of Dodge’s all-electric Charger Daytona.
  • The Charger Sixpack will feature a 3.0-liter twin-turbocharged straight-six Hurricane engine, with up to 550 horsepower in the high-output variant.

Hosts: Paul J Daly and Kyle Mountsier

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This Tuesday morning we are excited to publish the very first AutoIndustry.ai weekly email, covering everything the industry needs to know about AI. But before we talk about that, we’re covering how VinFast’s founder is jumping in to keep the company afloat again.

Show Notes with links:

• VinFast is getting another major capital infusion from its billionaire founder Pham Nhat Vuong as well as parent company Vingroup to aid its global expansion.
  • Pham Nhat Vuong, Vietnam’s first billionaire, pledged a personal investment of $2 billion, and Vingroup plans to loan an additional $1.38 billion.
  • Existing loans from Vingroup to VinFast Vietnam (valued at 80 trillion dong) will convert to preferred shares.
  • Vuong and Vingroup pledge continued support through 2026 to reach “cash flow equilibrium by the end of 2026.”
  • Vuong said in June that he was willing to bet all his money on the company’s growth.

• As AI investments accounted for almost 40% of VC deals in Q3, dealerships should prepare for a surge in AI-driven solutions, likely unfolding in three phases, according to guest contributor Steve Greenfield.
  • Phase 1: The AI-Powered “Co-Pilot”: AI “Co-Pilots” can double productivity by handling routine tasks, allowing employees like BDC agents to respond to twice as many leads and accelerating accounting workflows.
  • Phase 2: The AI-Powered “Intelligent Agent”: Intelligent Agents, like Siri or Alexa, operate independently, managing tasks such as answering dealership calls and scheduling service appointments 24/7, making a “24/7 dealership” possible.
  • Phase 3: AI Replaces Roles: Autonomous AI will start replacing repetitive roles. With human capital making up to 80% of costs, dealerships may see profitability benefits while AI handles tasks once managed by people.
  • Steve’s Advice to Dealership Employees: Embrace AI changes and stay updated on new technologies to help your dealership thrive in the evolving landscape.

• AI Prompt of the week: 
  • “Please help me develop a prompt that captures my company's unique voice, tone, language, and energy. I want to ensure that AI-generated content aligns with our brand’s personality and connects authentically with customers, even as we enhance and streamline the process with AI.
  • To do this, ask me one question at a time until you’re able to write a comprehensive, brand-aligned prompt for generating future content.” 
  • Pro Tip from the AutoIndustry.ai writing team: “Just because you’re talking to a chatbot doesn’t mean you should forget your manners. Always use “please” and “thank you” when prompting (mostly so that robots show mercy on you when the machines revolt).”

Hosts: Paul J Daly and Kyle Mountsier

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Happy Veteran’s Day and thank you to all who have served! Today we’re talking about Ernie Garcia II cashing in on $1.4B of Carvana stock, a new Capital One study highlighting the role of trust and transparency in the car buying process and an IHOP-Applebees shared location.

Show Notes with links:

• Ernie Garcia II, father of Carvana CEO Ernest Garcia III, has strategically sold $1.4 billion of Carvana stock since April, benefiting from a notable rally in the company’s share price amid an impressive restructuring turnaround.
  • Garcia II has offloaded nearly 10 million shares, transitioning his Class B voting stock into Class A shares for liquidation.
  • He still controls 69.2 million Class B shares, making up the core of his $17.6 billion fortune.
  • Garcia’s last major sell-off was in 2021 when Carvana shares peaked, raising questions on the timing of his sales.
  • The stock’s rebound from under $4 at the end of 2022 to around $240 has renewed confidence in the company’s trajectory.
  • Nejat Seyhun, a finance professor at the University of Michigan, said “He might just have other alternatives and other investments… or maybe he expects the stock could fall—it’s better to sell early than late.”

• Capital One's 2024 Car Buying Outlook highlights the role of trust and transparency in car buying, emphasizing the opportunity for dealers to bridge the digital and in-person experience.
  • 88% of buyers complete at least half of the car buying process in person, up 5% from 2023, underscoring the dealership’s essential role.
  • Digital tools are popular for early steps, with most buyers researching models, inventory, and financing options online before heading to the dealership.
  • Trust drives loyalty: buyers are more than twice as likely to return to a dealer they trust, with 48% willing to pay more if they feel secure in the relationship.
  • Transparency is key: while 73% of dealers see the process as “very transparent” or “completely transparent”, only 55% of buyers agree. 
  • “In a time when the ways cars are designed, sold, and purchased are rapidly evolving, the one thing buyers and dealers should see clearly from the start is each other,” says Sanjiv Yajnik, President of Financial Services at Capital One.

• Applebee’s and IHOP are launching their first-ever dual-branded location in the United States, set to open in Seguin, Texas, in early 2025.
  • The Seguin site will combine Applebee’s lunch and dinner with IHOP’s breakfast and brunch, maximizing both brands' peak hours.
  • With a shared kitchen and cross-trained staff, this setup aims to cut costs and improve profitability, potentially supporting struggling locations.
  • The site will feature a drive-thru to meet demand for off-premises dining.
  • Dine Brands plans to roll out up to 15 dual-branded locations in the U.S. “The addition of a second brand may improve unit economics,” said CEO John Peyton, viewing it as a smart strategy for growth.
  • Dual-branding has gained popularity in hospitality

Hosts: Paul J Daly and Kyle Mountsier

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