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It's a fresh week in a fresh month as we talk about Toyota's certification scandal, the booming trend of automotive retailers entering the powersports segment, and GM's innovative clutch pedal for EVs to win over driving enthusiasts. 

Show Notes with links:

• Toyota suspends sales of several models in Japan due to certification issues, amid a broader scandal involving multiple automakers and inadequate vehicle verification tests.
  • Toyota halts sales of the Corolla Fielder, Corolla Axio, and Yaris Cross due to testing discrepancies.
  • The issue involves using testing methods that differed from Japanese government standards for safety verification.
  • Mazda, Honda, Suzuki, and Yamaha also face similar certification issues.
  • The Ministry of Transportation labels the incidents as undermining user confidence although the vehicles are deemed safe to drive.
  • Toyota Chairman Akio Toyoda apologized for the oversight, taking a deep, long bow of contrition.
• Automotive retailers are increasingly entering the powersports segment, attracted by the complementary nature and profitability of the industry.
  • Powersports includes motorcycles, ATVs, snowmobiles, and personal watercraft.
  • Automotive retailers like Sonic, Lithia, and Ed Morse Automotive Group are acquiring powersports stores.
  • Profit margins for powersports can reach 10-12%, compared to 5% in automotive retail post-COVID.
  • Harley-Davidson is particularly popular, with about 30 dealership sales per year.
  • Teddy Morse, CEO of Ed Morse Automotive Group, owns eight powersports stores across Texas, Colorado, Missouri, and Florida.
  • Morse formed Teddy Morse's Moto Co. to oversee the powersports segment and plans to acquire another store this year.
  • Morse emphasizes the shared passion for riding among customers and employees: "There's a passion that goes along with that, that you just can't manufacture."
  • He said said riding motorcycles "makes you feel like the star of your own movie."
    
    
    
• GM is developing a clutch pedal for its electric vehicles, aiming to enhance driving engagement and appeal to car enthusiasts.
  • Car enthusiasts criticize EVs for lacking driving excitement due to one-pedal driving and no real gearbox.
  • GM's new clutch pedal concept uses a hydraulic actuator to operate a clutch in EV transmissions.
  • The actuator's pressure varies, controlled by a piston that adjusts clutch engagement for optimal performance.
  • This system simplifies EV transmissions, requiring fewer gear shifts, and avoids motor instabilities.
  • GM's clutch pedal aims to improve efficiency, performance, and provide drivers with precise control over clutch operation.

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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