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Episode #1101: Today we talk about how AI is quietly reshaping the workforce under the guise of “restructuring.” GM reports a profit dip but revs up electrified truck updates to meet shifting demands. Finally, California launches an innovative apprenticeship program to tackle the auto tech shortage head-on.

• GM’s Q2 net income fell 35%, hit by $1.1 billion in tariffs, but the company holds firm on full-year profit goals. CEO Mary Barra highlights strategic moves to align with consumer demand. Meanwhile, GMC is updating its trucks and SUVs with plug-in hybrids arriving in 2027 and EV redesigns planned.
  • Q2 revenue dropped 1.8% to $47.1 billion; North American pretax profit down 46%.
  • Tariffs expected to cut profits by $4-$5 billion this year.
  • GMC’s Sierra and Yukon will add plug-in hybrids in 2027, with EV Sierra redesign in 2028.
  • Hummer EV and other models due for updates through 2029.
  • Barra: “We’ll emerge from this transition stronger and more profitable than before.”
    
    
    
• California dealers are tackling the nationwide shortage of skilled auto techs with a new apprenticeship program. The initiative lets aspiring technicians learn on the job without upfront costs, offering wages, tools, and a U.S. Department of Labor certification after two years.
  • CNCDA reports 400,000 tech job openings nationwide; California alone needs 5,000 more.
  • The shift to EVs and retiring experienced techs are worsening the shortage.
  • Apprenticeship pays a fair wage, requires no tuition, and includes e-learning tools.
  • Open to anyone, especially those 18-30 without college degrees, aiming to avoid student debt.
  • “This program offers a practical path to a lucrative career without the burden of traditional schooling,” said CNCDA representatives.

• While companies rarely admit it publicly, AI technology is increasingly driving workforce reductions disguised as restructuring or optimization. Early layoffs have targeted 1099 freelancers, especially in content and creative roles, HR, and Customer Service as firms cautiously phase in AI tools before affecting full-time employees.
  • IBM and Klarna have been among the few transparent about AI replacing some jobs despite overall growth.
  • Companies often use euphemisms like “restructuring,” “reorganization,” “optimization,” and “business efficiency” to mask AI-driven job cuts and avoid backlash.
  • When AI falls short, companies often outsource work globally instead of rehiring domestically.
  • “AI might automate 70% to 90% of a process, but the last mile still needs the human touch, especiall

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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Episode #1100: Franchised dealerships saw a 22% profit surge in Q2, led by strong gains in import and domestic brands. Ford unveiled a high-tech electric Bronco, but it’s only for China. Meanwhile, Tesla opened its retro-style diner and drive-in in Hollywood, complete with Superchargers, rooftop views, and robot service.

Franchised dealerships saw a big jump in net profits this quarter as customers rushed to buy before tariffs hit, according to the Q2 2025 Presidio-NCM Benchmark. Profit gains came with a small asterisk because of the big cybersecurity hit last year. However this does mark the first quarterly improvement in domestic brands in three years.

• Average franchised dealerships posted a 22% net profit increase year-over-year, helped by both import and domestic brand gains.
• Import stores led with a 34% profit rise, luxury stores up 32%, and domestic stores rebounded 24% for the first time since 2022.
• New-vehicle gross profit per unit rose 6.1% from Q1 2025 to $2,128, reversing a multi-year decline.
• Used-vehicle gross profit climbed 11%, while finance and insurance income increased 5.6%, supporting overall revenue growth to $22 million per dealership.
• “Sustained profitability will come from a focus on fundamentals and a willingness to adapt as market conditions continue to evolve,” said Paul Faletti, CEO of NCM Associates.

Ford has built a fully electric Bronco SUV with some impressive specs like 403-mile range, advanced EV tech, including lidar and 30+ sensors for semi-autonomous driving, and a heavier/smoother ride but there’s a catch… it’s only coming to China

• The Bronco New Energy offers two powertrains: a full electric with a 105 kWh battery and an extended-range hybrid (EREV) combining a 43.7 kWh battery with a 1.5L gas generator.
• The hybrid version can cover up to 800 miles total, with 137 miles purely on battery before the gas engine kicks in.
• The SUV is big and heavy—nearly 5,800 pounds and almost 9 inches longer than the gas Bronco—providing a planted ride but potentially slower cornering.
• Ford’s smart cabin includes unique modes like “naps, pets, camping overnight” designed for comfort and convenience.

Tesla’s new Diner and Drive-In in Hollywood is ready to serve nostalgia and innovation side by side. Opening July 21, 2025, this retro-futuristic spot combines classic diner vibes with 75 Tesla Supercharger stalls and even features a Tesla Optimus robot.

• The two-story, saucer-shaped diner sits on historic Route 66 and offers 9,300 sq ft including a rooftop bar with panoramic views.
• Classic movies and SpaceX launch footage play on two massive LED screens syncing audio to your Tesla’s stereo for a true drive-in experience.
• Tesla owners get exclusive perks like in-car touchscreen ordering and carhop service on roller skates delivering diner classics served in Cybertruck-themed packaging.
• Charging supports up to 250 kW for Models S, 3, X, Y, a

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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JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/

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Episode #1099: It’s Saturday, which means Chris Reeves is back in the studio with another story that brings all the feels.

This time it’s about Speedway Subaru in Indianapolis. When a service advisor found out a longtime customer had lost everything in a house fire, including the dog that saved their life, he didn’t just offer sympathy. He took action. The team came together to donate a car and provide essentials to help the family rebuild.

We talk about what it means to be oriented toward people, how a culture of awareness makes stories like this possible, and yes, somehow we get into Dungeons & Dragons too.

Story Link: https://www.linkedin.com/posts/speedwaycars_subarulovepromise-speedwaycares-speedwaysubaru-activity-7349806799643893761-r1Xg/?rcm=ACoAADx8cGUBDLlEN_DFCU9c17qutER63LD65xg

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.

Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/

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.

Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/