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Episode #1102: Today, we're unpacking the Detroit 3's tariff turmoil with Japan, exploring how "Auction 2.0" is reshaping used-car sourcing, and tracking Delta's AI-driven pricing turbulence as Senators demand answers.

The U.S. automakers GM, Ford, and Stellantis are pushing back against a new trade deal lowering Japanese auto tariffs to 15%, while tariffs on Canadian and Mexican imports stay at 25%. The Detroit 3 warn this imbalance threatens U.S. auto jobs and industry.

• Matt Blunt of the American Automotive Policy Council says any deal that favors Japanese imports over high-U.S.-content North American vehicles is “a bad deal for U.S. industry and auto workers.”
• President Trump boasts of a “massive deal” with Japan involving $550 billion in investments and tariff cuts, calling it a historic win for U.S. automakers.
• Details remain murky on whether Japanese cars and parts will get carve-outs from existing tariffs; the deal comes as Trump threatens to hike tariffs on Mexico and Canada.
• U.S.-Japan talks included Japan’s chief trade negotiator meeting Treasury Secretary Scott Bessent, who says negotiations are “going very well.”
• Japanese automakers continue investing in U.S. production, with significant commitments from Isuzu and Toyota, aiming to boost local manufacturing despite tariff concerns.
  
  

According to recent data from Cox Automotive, NADA, and BCG, the traditional used-car auction model is failing franchised dealers due to rising fees, transport costs, and poor condition reports. Dealers are shifting fast to private-party acquisitions (PPA), creating a more local and cost-effective supply.

• Auction-sourced dealer inventory fell from 27% in 2019 to 18% in 2023, while private-party sourcing grew from 10% to 15%.
• Buy fees have increased by about 50%, transport costs are up roughly a third, and lane prices remain inflated, squeezing dealer margins.
• The Manheim Index peaked at 234 in early 2023, but lane conversion rates dropped to 58-64%, below the 70% pre-pandemic norm.
• NADA projects private-party sales will hit 40% of the used market by 2025, signaling a permanent market shift.

According to Sen. Ruben Gallego and other senators, Delta's new AI-based ticket pricing strategy could unfairly hike costs based on individual passenger data. Senators worry this could squeeze consumers financially during tough economic times.

• Senators are demanding clarity on what data Delta uses and how widely the AI pricing will be implemented, currently 3% but planned for 20% of routes by year-end.
• Delta says the AI tech streamlines longstanding dynamic pricing and denies using personal data for individualized offers.
• Critics worry AI could push prices to each consumer’s “pain point,” risking predatory pricing amid inflation pressures.
• Delta pre

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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

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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

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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.

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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 #1098: Rivian is laying foundations in Georgia with a new East Coast HQ and massive EV factory. A brave deacon turns his F-150 into a life-saving shield, and gets rewarded. And OpenAI's latest ChatGPT upgrade puts real-world task management on autopilot.

• Rivian is plugging into Atlanta as it sets the stage for its next major manufacturing move. The EV maker is launching an East Coast HQ to support its second plant, with big plans to expand.
  • The Atlanta office opens late 2025, expands in 2026 to support the nearby Georgia plant.
  • An initial staff of 100 will grow to around 500.
  • The new $6B+ factory in Stanton Springs to begin vertical construction in 2026 which will produce R2 and R3 models starting 2028, span 16 million sq. ft., and employ 7,500.
  • CEO RJ Scaringe: “Atlanta embodies so much that makes Georgia great — top talent, exceptional creativity, and a desire to always be moving forward.”

• Some heroes don’t wear capes, they drive F-150s. When Richard Pryor saw a man pulling a weapon outside Crosspointe Church during Vacation Bible School, he didn’t freeze. He floored it. The deacon used his truck to stop what could’ve been a tragic day in Wayne, MI.
  • Though he saved countless lives that day, unfortunately his truck didn’t survive the harrowing incident after taking a round and crashing
  • When Demmer Ford heard what Richard had done, they handed him the keys to a new 2025 F-150 as a gesture of appreciation for his courage and quick action.
  • We may not all have Richard’s bravery, but every one of us has the power to do something that matters. The key is keeping your eyes open and your heart ready.

• OpenAI has launched a game-changing upgrade to ChatGPT, giving it its own virtual computer. This move turns the AI into a fully-fledged assistant that can execute complex tasks—start to finish—without skipping a beat.
  • ChatGPT Agent can now handle real-world work like analyzing competitors, booking travel, and updating spreadsheets, all from your single prompt.
  • It blends the strengths of previous tools—Operator and deep research—into one powerful, task-completing system.
  • The AI can click, scroll, code, and summarize, even logging into your Gmail or GitHub (with permission) to grab the info it needs.
  • New benchmarks show it beats human-level accuracy across investment banking, data science, and spreadsheet modeling tasks.
  • “You’re always in control,” says OpenAI. “You can take over the browser, pause tasks, or get a real-time progress summary.”
  • Starting today (July 17–18), it’s available to Pro, Plus, and Team subscribers. Just toggle “Agent Mode” in the tools dropdown during any chat

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 #1097: In today’s episode, we dig into why the Alliance for Automotive Innovation and NADA are in disagreement on state franchise laws, Stellantis’ quiet hydrogen retreat, and why pop-up shops are punching above their weight in modern retail strategy.

• The Alliance for Automotive Innovation has called on the DOJ to review state franchise laws, sparking a fierce response from NADA and highlighting long-standing tensions between OEMs and dealers.
  • The Alliance argues some franchise laws create unnecessary costs, ultimately hurting consumers and competitiveness.
  • The letter targets laws restricting new dealership locations and third-party time guides for warranty work.
  • NADA President Mike Stanton labeled it a “broadside attack” and called for a unified defense of the franchise model.
  • Don Hall, CEO of VADA, said: “If there is such a thing as a holy war in the franchise world, it’s a holy war.”
  • In response to backlash, John Bozzella, President of the Alliance clarified: “We support the dealership franchise model. Period. Full stop.”

• Stellantis is backing away from hydrogen-powered vehicles, shelving its fuel-cell van program as infrastructure and economic realities dim the tech’s near-term future.
  • The automaker will no longer launch its hydrogen-powered Pro One vans originally planned for France and Poland.
  • Stellantis cited poor infrastructure, high costs, and low midterm viability for light-duty hydrogen vehicles.
  • R&D resources will be redirected toward electric and hybrid vehicle development.
  • Staff at impacted plants will be reassigned, and the company is reassessing its stake in hydrogen joint venture Symbio.
  • “The hydrogen market remains a niche segment, with no prospects of midterm economic sustainability,” said COO Jean-Philippe Imparato.

• Pop-up retail is evolving from a buzzy trend to a proven strategy, with brands large and small embracing short-term storefronts to build awareness, test products, and drive limited-time sales.
  • U.S. pop-up shops generate ~$80B annually, with projections hitting $95B by 2026.
  • 80% of retailers who've opened a pop-up call it a success; most spend under $5,000 to launch.
  • Goals include building brand awareness (66%), deepening customer connection (63%), and launching products (46%).
  • Retailers range from e-commerce-only to full brick-and-mortar operations.
  • As Sarah Rudge wrote: “Pop-up shops have become more than just a retail trend — they’re now a strategic tool.”

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 #1096: We cover GM’s shift away from EVs at Orion, the end of a 112-year family legacy at Ohio’s oldest Ford dealership, and how new AI tools are challenging the finance industry’s most iconic software.

• General Motors is officially reversing course at its Orion Assembly plant, which had been idled since late 2023 for a planned conversion to electric vehicle production. Instead, the automaker now says the factory will build gas-powered versions of the Escalade, Silverado, and Sierra starting in 2027.
  • Originally, Orion was to build EV versions of the Silverado and Sierra, aligning with GM’s electrification strategy.
  • Production was delayed twice amid shifting consumer sentiment and cost considerations.
  • The move is part of a broader $4 billion investment across three plants to increase output of gasoline-powered vehicles.
  • GM cited “continued strong customer demand” for ICE models as the driver behind the pivot.
  • “These moves will further strengthen our manufacturing footprint,” GM said, reaffirming its commitment to Michigan manufacturing.

• After 112 years under Chapman family stewardship, Ohio’s oldest Ford dealership has been sold to Coughlin Automotive, marking the end of a storied chapter in Marysville.
  • Originally opened by grocer George Butler Chapman in Plain City in 1913, Bob Chapman Ford was one of the first Ford dealers in Ohio, selling Model Ts
  • Over four generations, the Chapman family expanded: new facilities in 1918, 1935, and 1978, plus ventures into Firestone stores, Chryslers, RVs, even founding local airports
  • The current 28,000-square-foot facility includes 24 service bays, a Quick Lane center and proudly displays an original Model T on its showroom floor as a nod to its century‑plus legacy
  • Joe Chapman described the sale as “one of the most emotional and important decisions of my life,” praising Coughlin’s deep respect for the dealership’s legacy and community roots.

• New AI platforms like Claude and Perplexity are digging into the finance world, offering powerful features that could make Bloomberg’s industry standard $25K-a-year terminal feel outdated.
  • Claude now combines real-time market data with internal company info to answer complex questions instantly—no more juggling multiple systems.
  • It can run simulations, build trading models, and handle huge documents without analysts hitting roadblocks.
  • Major firms like Bridgewater, AIG, and Norway’s sovereign wealth fund are already seeing big productivity boosts.
  • Perplexity targets a broader market with tools starting at $0, offering fast research summaries, stock comparisons, and even crypto integrations through Coinbase.

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 #1095: Volvo takes a $1.2B charge as EV costs and tariffs bite. Nissan shifts gears in Mississippi, shelving EV plans in favor of SUVs and pickups. And Ford steps up in Texas, donating $1.25M and deploying people and vehicles to aid flood victims.

Nissan’s $500M investment to build five EVs in Canton has stalled amid political uncertainty and loss of U.S. tax credits. The automaker is eyeing SUVs and pickups to keep the lights on.

• With EV plans delayed, Nissan is pivoting to body-on-frame vehicles, potentially doubling Canton’s output with models like the Armada and Infiniti QX80.
• A return of the rugged Xterra is also on the table — this time as a hybrid SUV riding on the Frontier truck platform.
• The shift could revive a plant running at half capacity and counter rising tariffs on imports from Japan.
• Nissan is even exploring a “what if” collaboration with Honda to build pickups, but one source called it “pie in the sky at this stage.”

Volvo Cars is taking a $1.2 billion charge in Q2 as it battles rising costs, tariffs, launch delays tied to its electric vehicle lineup and reduced profitability on two electric models, the EX90 SUV and ES90 sedan.

• The EX90 began production in June in South Carolina, but saw over a year of delays due to software issues and is launching without key features like lidar, ADAS tools, and bidirectional charging.
• The China-built ES90 sedan isn’t faring better—tariffs in the U.S. and EU have made it tough to sell profitably in Volvo’s key markets.
• The company is in the midst of deep cost-cutting, including layoffs impacting 3,000 jobs globally and 15% of its U.S. commercial staff.
• Volvo’s U.S. sales rose 6% in the first half of 2025, but global deliveries fell 9%, highlighting uneven momentum.

Ford and its dealer network are going all in to support Texans in the wake of devastating flash floods.

• The automaker, along with Ford Philanthropy and Texas dealers, is donating $1.25 million to local charities and disaster relief partners.
• Beyond dollars, Ford is supplying loaner vehicles to the American Red Cross to expand outreach in hard-hit areas.
• Ford’s new Extended Volunteer Paid Time Off policy allows trained employees to deploy with Team Rubicon for on-the-ground disaster relief.
• Volunteers will also be packing food boxes for families through the North Texas Food Bank and running shelters and reunification centers.
• “We’re standing alongside our Texas Ford Dealers… to ensure critical support gets to those who need it most,” said Elena Ford.

0:00 Intro with Kyle Mountsier and Michael Cirillo
0:30 Paul and Kyle were at the Beaver Golf Tournament yesterday
1:40 New Auto Collabs episode with John Sacco on recycled metals
2:20 Congrats to Ashley Cavazos on being the new President of WOCAN!
3:55 Nissan To Pivot Canton, Mississippi Plant

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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