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It's the last weekend before Christmas, so we discuss Christmas traditions around the ASOTU halls with writers Chris Reeves and Kristi Canada.

Then, we discuss how car-dealer Herb Chambers donated $100 Million to Massachusetts General Hospital for a new state-of-the-art cancer care facility.

Hosts: Paul J Daly and Kyle Mountsier

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With just 2 weekends left in the year, we’re excited to share that the automotive industry is set up for an excellent finish to 2024. Meanwhile, Ford is ramping down its F-150 Lightning production until the new year to meet demand, and Gen Z may just save the malls.

Show Notes with links:

• The automotive industry is gearing up for a solid 2024 finish as inventories stabilize and aggressive year-end deals lure buyers back to showrooms. Analysts remain optimistic about continued momentum into 2025, despite policy uncertainties.
  • Total 2024 sales are projected at 15.8–15.9 million vehicles, a solid increase from 15.6 million in 2023.  December’s seasonally adjusted annual rate (SAAR) is expected to reach 17.2 million, the highest since 2021.
  • General Motors is likely to hold its position as the top U.S. automaker, with Honda having the most gains, overtaking Stellantis in market share due to Stellantis’ estimated 15% sales drop.
  • Retail leasing activity is up 19% YoY, fueled by record-high EV incentives averaging $8,202 per transaction. EV sales are forecasted to grow 12% in Q4, contributing to the year’s estimated 8% EV market share.
  • Despite falling interest rates (below 7% for the first time in a year), high vehicle prices push average monthly payments to $740—a $15 increase over last year and $150 higher than in 2019.
  • "We’ve gone from ‘wait to buy’ to a new marching cry of ‘buy now before prices and rates climb again,’” says Jonathan Smoke, chief economist at Cox Automotive.

• Ford has announced a temporary production pause for its F-150 Lightning until January 6, 2025. The decision reflects a strategic adjustment to align supply with actual market demand as the EV industry navigates a period of slower-than-expected growth.
  • Ford sold 22,807 F-150 Lightnings in 2024, marking an 86% increase from last year. This performance places it well ahead of competitors like Chevrolet’s Silverado EV (5,252 units) and Rivian’s R1T (10,387 units).
  • The pause at Ford’s Dearborn, Michigan plant is designed to prevent overproduction and ensure dealerships are not overstocked with unsold inventory.
  • Ford’s strategy acknowledges that EV adoption is not growing as fast as earlier projections suggested, requiring automakers to balance innovation with market-driven production levels.
  • As a Ford spokesperson explained: "We continue to adjust production for an optimal mix of sales growth and profitability."

• In a talk at the NeurIPS 2024 AI conference, former OpenAI Chief Scientist Ilya Sutskever reflected on the foundational 2014 paper that shaped modern AI—and looked ahead to where AI is going next.
  • The era of pre-training is ending as AI is running out of quality internet data, marking the end of "Peak Data." As Sutskever put it, "Data is the fossil fuel of AI."
  • Sutskever says we should expect smarter AI agents, synthetic training data, and models that think more like humans And that future AIs could have true reasoning, self-awareness, and unpredictable decision-making.

Hosts: Paul J Daly and Kyle Mountsier

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Our 4th Annual Year End Extravaganza is at 1PM today! But before we get there, we’ve got to talk about how Foxconn is still trying to buy Nissan, how a new CA law will require way more charging infrastructure and ChatGPT’s phone hotline.

Show Notes with links:

• The ante has been upped as a Foxconn exec is currently meeting with Renault officials in France to discuss acquiring a stake in Nissan, intensifying the urgency of Honda and Nissan’s merger talks. Facing fierce competition from Tesla and Chinese automakers, both Japanese giants are exploring deeper collaboration to stay afloat in a rapidly shifting EV market.
  • Honda and Nissan have been  exploring a holding company to deepen collaboration, stay competitive against Tesla and BYD, and address slowing EV demand in Europe and the U.S.
  • A merger could offer cost savings and shared R&D across 7 million vehicles but risks overlap in markets and products, especially in the U.S. and Japan as Japanese regulators are closely watching the situation due to its potential impact on jobs. 
  • One of the biggest questions that we think isn’t being talked about enough, is this being a potential door to allow Chinese EVs to enter the market.

• California's new building codes, effective 2026, will require EV chargers in most new overnight parking spaces, providing convenient access to charging, especially for apartment dwellers and urban residents.
  • Most new apartment and condo projects must ensure that each unit’s parking spot is "EV Ready" with 240V outlets or standardized chargers. Shared spaces can use power-sharing systems to keep costs manageable.
  • New hotel/motel guidelines will require up to 65% of parking spots to be EV-ready, ensuring travelers have access to overnight charging.
  • Office, retail, and other non-residential lots must designate at least 20% of their spaces as EV-ready, with incentives for installing DC fast chargers.
  • Older parking lots must meet EV-ready requirements whenever significant updates or new spaces are added, creating a gradual statewide retrofit.

• OpenAI has launched a phone-based version of ChatGPT, allowing users in the US to call and chat with the AI for up to 15 minutes a month. The feature is part of OpenAI’s push to make AI accessible to new audiences.
  • How It Works: Call 1-800-CHATGPT to connect with ChatGPT for up to 15 minutes per month per phone number. You can also message ChatGPT via WhatsApp using the same number globally.
  • The phone system uses OpenAI’s Realtime API, while the WhatsApp integration is powered by GPT-4o mini through the WhatsApp API.
  • OpenAI describes the feature as a “low-cost way” for users unfamiliar with AI to try it out through familiar channels. Advanced users may prefer traditional ChatGPT accounts for more robust features.
  • The service mirrors Google’s GOOG-411, a directory assistance tool launched in 2007 to collect voice samples for speech recognition. Open

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Remain calm, there is only 1 week until Christmas. Today we’re talking about a potential merger between Nissan and Honda, how Chevy’s EV Equinox apparently doesn’t make enough noise and how the FTC is cracking down on junk hotel fees.

Show Notes with links:

• Nissan faces a crossroads as merger talks with Honda intensify, spurred by Foxconn's interest in a controlling stake and the competitive pressures reshaping Japan's auto industry.
  • An announcement by Honda and Nissan could come as soon as Dec. 23, with plans to sign a memorandum of understanding to discuss shared equity stakes in a new holding company.
  • A Honda-Nissan-Mitsubishi merger would create one of two Japanese auto powerhouses—the other led by Toyota and its stakes in Subaru, Suzuki, and Mazda.
  • Foxconn’s interest in Nissan reportedly accelerated Honda’s push for a merger, fearing Nissan’s vulnerability to a takeover.
  • Combined, Honda, Nissan, and Mitsubishi sold 4 million vehicles globally in the first half of the year, far behind Toyota’s 5.2 million on its own.
  • Nissan shares surged 24% on Dec. 18, marking the biggest one-day gain in its history, after both companies acknowledged discussions.
  • Renault, Nissan’s largest shareholder with a 36% stake, remains a key player, potentially influencing any final decision.

• General Motors issued a recall for the 2025 Chevy Equinox EV due to its pedestrian alert system failing to make sufficient noise at low speeds, potentially putting pedestrians at risk.
  • The alert system's software may not meet federal noise requirements for hybrid and electric vehicles, affecting over 7,500 Equinox EVs.
  • GM resolved the issue in its assembly plant in October. Current owners can get a free body control module update at dealerships starting January 27, 2025.
  • EVs are known for their quiet operation, but regulations require external sounds to alert pedestrians, especially at low speeds.
  • Despite the recall, over 15,000 units have already sold. The LT FWD trim, starting at $34,995, boasts a 319-mile range, making it one of the most affordable long-range EVs in the U.S.

• The FTC has passed a rule requiring ticket sellers, hotels, and rental sites to disclose total prices upfront, addressing "junk fees" that increase consumer costs.
  • Companies must now include service fees, resort fees, and other charges in advertised prices, eliminating last-minute add-ons.
  • The rule could save Americans 53 million hours annually spent uncovering hidden fees.
  • Passed 4-1, the rule may face challenges under incoming Republican leadership and legal pushback.
  • FTC Chair Lina Khan stated: "I.. encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy."

Hosts: Paul J Daly and Kyle Mountsier

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8 days to Christmas, and we’re covering how Biden’s plans to add highway charging infrastructure will continue under President Trump. Plus, we look at GM’s latest subscription add-on and ask if it will work, and examine a company that claims it has stopped hiring because AI can do all the work.

Show Notes with links:

• The Biden administration’s plan to blanket U.S. highways with federally funded EV chargers will keep moving forward – no matter who sits in the Oval Office come next year.
  • The National Electric Vehicle Infrastructure (NEVI) program has already allocated about half its funding to states, with the rest preapproved.
  • So far, 11 states have opened 30 federally backed sites with more than 130 ports, aimed at creating chargers every 50 miles along major highways.
  • States manage their own programs, though 10 states have yet to submit project proposals, potentially slowing progress in certain regions.
  • Once the initial 50-mile network is complete, funds can go toward chargers in cities, suburbs, and rural areas, with faster, high-powered stations expected to follow.
  • Atlas Public Policy’s Nick Nigro says Congress doesn’t need to act: “Funding is already going out, and construction is underway.”
  • Loren McDonald, chief analyst of Paren said it’s too late to stop the momentum. “It would take almost an act of God for Trump or Congress to overturn it.”

• General Motors is facing a critical moment as introductory Super Cruise subscriptions start to expire, testing its long-term strategy to build a robust revenue stream from subscriptions.
  • Super Cruise is a Level 2 autonomy system and GM aims to generate $25 billion annually from subscriptions and services by 2030.
  • Our friend Jamie Butters wrote an op-ed about this for Automotive News and commented on the price point: ““At $10 a month, I’d consider it a no-brainer — even though I’m kind of a cheapskate and resistant to subscriptions. At $50 a month — as some Google searches indicate — it’s an easy no. The price listed on Cadillac.com is temptingly in between: $25 a month or $250 a year.”

• Klarna’s CEO, Sebastian Siemiatkowski, recently touted AI’s role in reducing the company’s workforce, but a closer look reveals the buy now, pay later giant hasn’t fully swapped humans for machines just yet.
  • Klarna reduced its workforce from 4,500 to 3,500 over the past year, largely due to natural attrition and a hiring freeze.
  • Siemiatkowski claims, “AI can already do all of the jobs that we as humans do,” crediting AI with enabling efficiency gains.
  • Klarna is still hiring, with 50+ open roles globally, primarily for essential positions like engineering and partnerships.
  • Klarna’s press lead clarified the CEO’s comments,

Hosts: Paul J Daly and Kyle Mountsier

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With barely 2 weeks left in the year, we’re covering the extreme measures Tesla is taking to sell Cybertrucks. Plus, we look at the EVs with the longest range and explore how brick and mortar experiences are booming.

Show Notes with links:

• Tesla is taking unprecedented steps to address waning demand for its Cybertruck by repurposing its premium Foundation Series models and turning its attention to the Canadian market.
  • Foundation Series Cybertrucks, the first produced, were priced $20K higher and bundled with premium features, including laser-etched badging.
  • Many of these trucks remain unsold, prompting Tesla to remove the exclusive features to sell them as standard models at a reduced price.
  • Tesla is shipping over 800 Cybertrucks to Canada for homologation (certifying that a product or vehicle meets the necessary standards to be used in a specific region or country), believing the Canadian market offers stronger sales prospects than the U.S.
  • The company is also leveraging discounts, adding the Cybertruck to its referral program, and slashing lease prices in a bid to boost interest.
  • These efforts are straining Tesla's service and collision centers, leading to longer wait times and logistical challenges for existing customers.

• Range anxiety continues to be a significant barrier for many EV shoppers, but manufacturers are addressing these concerns with innovative designs and longer ranges, positioning EVs as practical and compelling options for mainstream consumers.
  • Mainstream consumers are shifting focus from sustainability narratives to tangible benefits like lower ownership costs, charging convenience, and exciting driving experiences, with range emerging as the decisive factor in EV adoption.
  • The top 10 EVs with the longest range are: Lucid Air Grand Touring - 516 miles, Chevy Silverado EV First Edition RST - 440 miles, Rivian R1T Adventure Dual Max - 420 miles, Rivian R1S Adventure Dual Max - 410 miles, Tesla Model S AWD - 402 miles, Tesla Model 3 Long Range Rear-Wheel Drive - 363 miles, Hyundai IONIQ 6 - 361 miles, Mercedes-EQ EQS Sedan - 352 miles, Mercedes-EQ EQS SUV - 339 miles, Tesla Model X AWD - 335 miles.

• In-store shopping isn’t just back—it’s booming. Strengthened by year-round innovations and experiences, brick-and-mortar stores are delivering unmatched value for both consumers and brands.
  • In-store holiday sales are projected to grow 2.5%-3.5% this year, with total spending reaching up to $989 billion, a significant increase from 2023.
  • Immersive attractions, like Natick Mall’s Santa’s Elevator Express, create unique opportunities for brand discovery. Over 5,000 families booked visits before the event even opened, boosting foot traffic by 50%.
  • Experiences like batting cages at Dick’s House of Sport and lifestyle zones like The Green at Oxmoor Center keep shoppers engaged beyond the holidays.
  • Gen Z, the “omnishopping” generation

Hosts: Paul J Daly and Kyle Mountsier

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Today we talk about not only what the industry is doing, but why the industry is doing it.

Head Writer Chris Reeves shares how Marysville Toyota in Everett, Washington hosted a Toyota Mini Makers Garage event to ignite curiosity and inspire futures.

Hosts: Paul J Daly and Kyle Mountsier

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12 days until Christmas, and today we’ve got Todd Caputo joining the show to discuss the Tekion lawsuit against CDK, how to make the most out of the last 2 weeks and GPT’s latest update that gives it vision.

Show Notes with links:

• The battle over dealership data is heating up as Tekion files a federal antitrust lawsuit against CDK Global, claiming anti-competitive practices. CDK, however, is firing back, labeling the lawsuit as retaliatory and lacking merit.
  • Tekion’s lawsuit accuses CDK of abusing its control over dealership data to stifle competition in the DMS market.
  • CDK claims the suit is retaliation for a cease-and-desist letter regarding Tekion’s “unauthorized access” to CDK’s systems.
  • A spokesperson for CDK called the lawsuit a “marketing stunt” and emphasized its history of facilitating dealer and vendor data transfers.
  • Tekion cited CDK’s initial refusal to share data with Asbury Automotive Group as an example of anticompetitive behavior.
  • A court ruled in October that CDK must provide Asbury with data for its pilot of Tekion’s system, following delays by CDK.

• ChatGPT can see. OpenAI introduced live video input and screen-sharing capabilities for ChatGPT during its Day 6 live stream event.
  • Users can now analyze and discuss visual contexts in real time through a new video icon in the mobile app.
  • The update is available to Plus, Pro, and Team subscribers, with Enterprise and Edu users gaining access in January.
  • A new festive voice option lets users chat with Santa, available as a seasonal feature until early January.
  • As this upgrade fulfills OpenAI’s promise of visual understanding, further solidifying the shift towards conversational AI with advanced vision capabilities.OpenAI CEO commented: “This brings ChatGPT closer to true multimodal interaction.” 

Hosts: Paul J Daly and Kyle Mountsier

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With only 3 Thursdays left in the year, we’re covering how General Motors has shut down its robotaxi division. Plus, dealer sentiment is up now that we’re past the election, and Google has announced a potentially massive breakthrough in quantum computing.

• General Motors (GM) has decided to shut down its Cruise robotaxi division after years of significant investment and high hopes. Once considered a $50 billion revenue opportunity by 2030, the move signals a shift in GM's strategic focus.
  • GM shares briefly rose following the announcement, reflecting investor relief over reducing the estimated $10 billion spent on Cruise’s development.
    • Cruise employees were notified via Slack, linking to a press release titled “GM to refocus autonomous driving development on personal vehicles,” sparking frustration among the workforce
    • GM plans to integrate some Cruise talent into its driver-assistance technology programs while doubling down on gasoline-powered trucks and SUVs, which remain its profit drivers.
  • CEO Mary Barra defended the decision, stating: “We looked at the amount of money to deploy a robotaxi business and to maintain that business… it’s quite a bit of capital. A robotaxi business is not GM’s core business.”

• The latest Q4 2024 Cox Automotive Dealer Sentiment Index (CADSI) brings a wave of optimism among U.S. auto dealers, reflecting improving confidence in the industry despite lingering challenges in the current market.
  • The market outlook index rose to 54, a substantial leap from 42 in Q3, marking the largest quarterly surge in CADSI history. Dealers credit political clarity and potential economic measures like tax rebates for the boost.
  • Franchised dealers are more optimistic (index 50) compared to independent used-only dealers (index 39).
  • The top concerns for dealers in Q4 2024 are economic conditions (56%), high interest rates (52%), weak market conditions (37%), the political climate (35%), and rising expenses (33%).
  • “The recent resolution of political uncertainty...has cleared the path for a more optimistic outlook on future auto market conditions,” said Jonathan Smoke, chief economist at Cox Automotive.

• Google has unveiled Willow, its latest quantum computing chip, claiming a monumental breakthrough in error correction and computation speed. However, experts remain cautious, pointing out that quantum computing still lacks practical, real-world applications.
  • Willow can solve a problem in 5 minutes that would take today’s supercomputers 10 septillion years—far beyond the universe's age.
  • Willow reduces errors exponentially as qubits (units of information in quantum computing, capable of existing as 0, 1, or a superposition of both simultaneously) scale, cracking a 30-year challenge in quantum error correction.
  • Experts agree it’s an exciting milestone but emphasize the need for a “ChatGPT moment” to unlock

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On this hump day, we’re covering the news that Amazon’s partnership with Hyundai has finally gone live for the general public. Plus, Rivian tops a recent survey of brand satisfaction, and small businesses are the most optimistic they’ve been in over 3 years.

Show Notes with links:

• Amazon has opened its car shopping marketplace, Amazon Autos, to 48 cities, including major hubs like Los Angeles, Dallas, and Miami. The platform offers a streamlined buying experience, starting with Hyundai as its launch partner.
  • Shoppers can browse, finance, and schedule vehicle pickups entirely through Amazon's ecosystem.
  • Hyundai is the first automaker onboard, with more brands expected to join in 2025.
  • Amazon emphasizes that local dealerships remain integral to transactions. "Dealers are the sellers of record," said Fan Jin, Amazon Autos’ global head. “The online experience will drive happy customers to their dealerships,”
  • The platform promises upfront pricing and trade-in valuations handled online for a seamless checkout experience.
  • Amazon plans to integrate more features, such as test drives and expanded financing options, while adding more dealerships and cities.

• Rivian, BMW and Tesla top the Consumer Reports brand satisfaction survey, which shows that EV brands are excelling in owner loyalty while traditional automakers fight for consistency.
  • An impressive 86% of Rivian owners would buy again, cementing the brand’s status as a leader in owner satisfaction.
  • Tesla rose two spots in rankings but saw a slight dip in owner buy-again sentiment compared to last year.
  • The top five brands overall are Rivian, BMW, Tesla, Porsche, and Lexus. The bottom five are Ram, Chrysler, Nissan, Volkswagen, and Jeep.
  • The Consumer Reports survey highlights how automakers with broad, consistent lineups build long-term customer loyalty, while those with uneven lineups struggle.

• Small business confidence in the U.S. has surged to its highest level since mid-2021, driven by post-election optimism. The National Federation of Independent Business (NFIB) reports significant improvements in economic expectations, hiring plans, and sales outlook.
  • The NFIB Small Business Optimism Index rose to 101.7 in November, marking an 8-point jump.
  • 36% of small business owners expect the economy to improve, the highest since June 2020.
  • Plans to hire increased to the highest level in a year, with 32% of businesses reporting compensation increases.
  • Fewer owners listed inflation as their top issue, though 28% still plan price hikes in the coming months.
  • However, industries like transportation, construction, and professional services report ongoing difficulties in filling positions.

Hosts: Paul J Daly and Kyle Mountsier

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