Automotive State of The Union

ASOTU Podcasts
  • 5.0 (30)
  • BUSINESS
  • UPDATED DAILY

Paul J Daly and Kyle Mountsier don’t just read headlines, they make the most important connections across car dealerships, general retail, tech, and culture. The goal? To help automotive leaders think clearer and move faster in a world that refuses to slow down. Whether you’re running a rooftop, building a brand, or just trying to keep up with everything shifting in the business of selling cars, this is your regular stop for a shot of news, insight, and a little bit of chaos…always rooted in people-first thinking.  From the showroom to Silicon Valley.  From Wall Street to Main Street. Paul and Kyle connect the dots, keep it real, and make it make sense. Learn more at https://www.asotu.com

  1. 1H AGO

    Ford Considers China Joint Venture, Detroit Considers Sedans, Amazon Reconsiders Grocery

    Shoot us a Text. Episode #1270: Ford floats ideas to counter China’s EV push, Detroit rethinks sedans as affordability pressures rise and Amazon proves even tech giants can’t crack physical retail that easily. As Chinese automakers creep closer to U.S. soil, Ford CEO Jim Farley reportedly discussed a framework that would allow Chinese brands to build cars in America—through U.S.-controlled joint ventures. The idea? Compete without getting steamrolled.Farley discussed U.S.-majority joint ventures with Trump cabinet officials at the Detroit Auto Show.The structure would allow Chinese automakers to build in the U.S., sharing profits and tech with American partners.Trump recently said he’d be open to Chinese companies building plants and hiring Americans.GM opposes any Chinese entry, warning of lost market share and supplier disruption.New polling from the north shows that Canadian sentiment toward Chinese-built EVs has shifted sharply: 53% now say it wouldn’t affect their purchase decision and 15% say they’d be more likely to buy—compared to 2024 when 61% said they were less likely to consider one. After years of betting big on SUVs and trucks, Detroit may be eyeing a return to sedans as affordability pressures mount.GM, Ford and Stellantis are all exploring affordable sedan options, including hybrids priced under $30,000.Passenger cars now make up just 18% of U.S. sales, down from 50% fifteen years agoAs Detroit exited sedans, Toyota’s share of the U.S. sedan market jumped from 12% to 22%Dealers say losing sedans cost them entry-level buyers who later would’ve traded up to higher-margin SUVs and trucks.“If somebody could build an affordable sedan, it would sell,” said dealer Adam Lee. “We have made these cars so expensive that nobody can afford them.” Amazon is shutting down its Amazon Go and Fresh stores, admitting it couldn’t crack the economics of brick-and-mortar grocery. Despite world-class logistics and tech, the company discovered what operators already know: physical retail is a grind.Amazon will close Go and Fresh locations after failing to build a scalable, profitable grocery model.Grocery is attractive because it’s high-frequency and data-rich—fuel for Amazon’s $21B ad business, but shoppers prioritize price, value, and location over tech like “Just Walk Out.”“Physical grocery is just brutally operational,” said Professor Andy Tsay, calling the margins “thin and unforgiving.” Today’s show is brought to you by ESi-Q. ESi-Q measures employee satisfaction and provides actionable insight into what’s driving employee 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/

    11 min

  2. 2D AGO

    💕 💪🏼 Why There's No Floor and No Ceiling In Automotive

    Shoot us a Text. Happy Valentine's Day! Today, Chris joins Paul and Kyle to talk about some of the things we saw this week: WOCAN and NCM gave Colby Sturdivant a full scholarship to NCM's GM development program, the first of its kind. We released the first episode of Season 2 of The Truth About Car Dealers, featuring stories of how retail auto should be an industry that people should fight to joiin. 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/

    8 min

  3. 3D AGO

    Lithia Won’t Sell Chinese Cars (At First), Stellantis Brings Back Diesel, AI During Job Interviews

    Shoot us a Text. Episode #1268: Today we cover Lithia’s reluctance to sell Chinese brands in the U.S., Stellantis quietly bringing diesel back to Europe as EV demand cools, and how companies like Canva and Meta are now testing job candidates on how well they use AI instead of banning it. Show Notes with links:  Lithia Motors CEO Bryan DeBoer signaled the company is not planning to be an early retailer of Chinese vehicles in the U.S. or Canada, citing the lack of a built-in service base to support long-term profitability.DeBoer said without an established fleet of vehicles on the road, new Chinese brands would not provide the recurring service traffic dealerships rely on.After-sales generated 41% of Lithia’s gross profit in 2025 with a 58% gross margin.Lithia currently sells several Chinese brands in the U.K., including BYD, MG, Chery, Leapmotor and Jaecoo, across a “double-digit” number of stores.DeBoer said entering the U.S. market would require a broader partnership with a Chinese automaker, including greater control over after-sales operations and potentially pricing, in order to make the economics work without an existing service base. Stellantis is quietly reintroducing diesel engines across at least seven models in Europe, positioning the automaker against Chinese EV competitors and responds to sustained customer demand.Diesel accounted for just 7.7% of European new car sales in 2025, compared to 19.5% for fully electric vehicles, but remains a lower-cost alternative for high-mileage and towing customers.Chris Knapman, CarGurus UK editorial director: “If you're a European brand looking to differentiate yourself, diesel is an area where you could have a competitive advantage over those newer brands.” A growing number of companies are no longer trying to prevent candidates from using AI during interviews — they’re encouraging it. Firms like Canva, Meta and McKinsey are redesigning hiring processes to evaluate how well applicants work with AI tools.Canva reworked technical interviews to allow — and expect — AI use, focusing on complex problems where candidates must show how they interact with the tool, not just the output.Candidates share their screens or submit AI chat transcripts so interviewers can evaluate judgment, iteration and decision-making.Arcade, an IT startup, now expects candidates to use AI in take-home exercises, emphasizing a candidate’s “taste” and ability to refine AI-generated work.Meta is developing AI-assisted coding interviews, and McKinsey is piloting case interviews using its internal AI tool, Lilli.“What we're testing for now … is an ability to harness that power, to control that power — to kind of ride the dragon,” said Canva CTO Brendan Humphreys.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/

    12 min

  4. 4D AGO

    CarMax Leads With Hospitality, Toyota EV Highlander, AI-Embellished Resumes

    Shoot us a Text. Episode #1267: CarMax taps a hospitality CEO to sharpen its digital edge, Toyota makes a disciplined move into three-row EVs with the Highlander name, and AI-generated resumes are creating new hiring headaches for retailers and operators.  Show Notes with links:  CarMax brings in a hospitality heavyweight to steer its turnaround. The nation’s largest used-car retailer has tapped former InterContinental Hotels Group CEO Keith Barr to lead the charge as sales stall and Carvana gains ground. His mission: sharpen digital retail and squeeze costs.Barr takes over in March, replacing Bill Nash amid stagnant sales and rising competition from Carvana.CarMax operates 250+ stores covering 85% of the U.S., but retail volumes fell 8% last quarter.The focus: improve online conversion, streamline vehicle acquisition and reconditioning costs.Analysts say CarMax’s omnichannel model may be confusing buyers and hurting digital sales.Barr is confident: “All those foundational pieces are there… we’re going to sell more cars and continue to create more value for shareholders.” Toyota is making a calculated move into EVs with the Highlander EV—on its own terms. By putting the Highlander name on a three-row electric SUV, the company signals a strategic shift rooted in discipline, profitability, and market timing rather than rapid expansion.Toyota preserved margins while competitors absorbed heavy EV losses, maintaining flexibility as demand cooled.It’s entering the most profitable U.S. segment—three-row midsize SUVs—with a name buyers already trust.Domestic production in Kentucky reduces tariff exposure and political risk while strengthening its U.S. footprint.Leadership under CEO Koji Sato appears focused on controlled scale and sustainable growth. AI may be speeding up hiring—but it’s also muddying the truth. New survey data shows a growing disconnect between what candidates claim on resumes and what they can actually do on the job, with AI tools making embellishment easier than ever.80% of hiring managers say resumes often don’t match real-world skills; 34% say it happens “all the time” or “often.”Retail examples include POS “experts” who couldn’t navigate the system and candidates who folded instantly in negotiation role-play.86% of hiring leaders believe AI makes it too easy to exaggerate skills; 42% see it as a serious hiring risk.Meanwhile, 80% of hiring managers dislike AI-generated resumes, and over half are less likely to hire obvious AI users.As Express CEO Bob Funk Jr. put it: “Integrity is still a competitive advantage.”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/

    14 min

  5. 5D AGO

    Ford Takes $11B Loss, Robotaxi Safety, NADA x Northwood for Dealer Education

    Shoot us a Text. Episode #1266: Ford posts its biggest earnings miss in years but bets big on a 2026 rebound. Robotaxis scale nationwide while public trust hangs in the balance. And NADA partners with Northwood to strengthen the next generation of dealership leadership. Ford just posted its biggest quarterly earnings miss in four years and its worst net loss since 2008. But beneath the headline loss, the company’s trucks and commercial vehicles are still carrying the load—and 2026 is being framed as a rebound year.The Q4 adjusted EPS (Earnings Per Share) came in at 13 cents versus the expected 19 cents, the largest miss in four years.Revenue remained strong, with $45.9B in Q4 and a record $187.3B for the full year, but about $900M in unexpected tariff costs and aluminum supply disruptions pressured margins.The company reported an $11.1B net loss in Q4 and an $8.2B loss for the full year, largely driven by $15.5B in EV-related special charges and restructuring actions.Ford Pro and Ford Blue have projected 2026 pre-tax earnings of up to $7.5B and $4.5B respectively, while the Model e unit is expected to lose up to $4.5B.CFO Sherry House noted that the Novelis aluminum plant disruption is not expected to fully resolve until mid-2026, meaning the company will continue sourcing alternative supplies at a higher cost. Waymo, Tesla, Zoox and others are racing to scale robotaxis across the U.S., but recent crashes and investigations show that winning public trust may be harder than winning market share.A Waymo vehicle struck a child who ran into the street from behind a parked SUV in California, prompting a federal investigation. Zoox also reported a crash after a driver opened a door into its path. Both companies say their systems reacted appropriately.A majority of Americans say they’re unlikely to try a self-driving taxi, though younger consumers are more open to the idea.“When something goes wrong, people don’t experience it as a statistical issue — they experience it as a moral and emotional one,” said Professor William Riggs. Northwood University and NADA are teaming up to expand education access for franchised dealers, their employees and their families — with discounted tuition, scholarships and a clear focus on building the next generation of dealership leadership.NADA dealer members can enroll in Northwood’s online undergraduate programs at $350 per credit hour, with the benefit extending to eligible spouses and dependents.Northwood’s DeVos Graduate School is offering 20% MBA tuition scholarships, discounted master’s programs and up to $15,000 toward a Doctor of Business Administration.Both organizations say the goal is strengthening the leadership pipeline in a people-driven, capital-intensive retaiJoin 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/

    14 min

  6. 6D AGO

    Carvana Buys 5th Store In a Year, Solid State Batteries Entering Production, 7-Eleven Hires With AI

    Shoot us a Text. Episode #1265: Today we cover Carvana doubling down on franchised dealerships, the solid-state battery arms race heating up as automakers target 2027 launches, and how 7-Eleven is using AI to cut frontline hiring from weeks to days—saving millions of hours while keeping humans in the loop. Carvana is leaning harder into the franchise world. The online used-car giant has acquired its fifth franchised dealership, adding a Stellantis store in Sacramento as it continues blending digital retail scale with traditional brick-and-mortar rooftops.Carvana purchased Sacramento Chrysler-Dodge-Jeep-Ram from Nouri/Shaver Automotive Group, with the deal closing Dec. 11.This is Carvana’s fifth Stellantis dealership since they first acquired a store in February 2025, with locations in Arizona, Texas, Georgia, and a second California store.The move comes as Carvana reports strong momentum: used-vehicle sales jumped 44% year-over-year and Q3 net income hit $263 million.A Carvana spokesperson said, “We are proud to bring the Carvana experience to Chrysler, Dodge, Jeep and Ram customers in the Sacramento area.” Last week brought major milestones in the race to develop solid state batteries, signaling that commercial EV launches powered by solid-state tech are finally moving from promise to pilot.Volkswagen-backed QuantumScape opened its highly automated Eagle Line pilot facility in San Jose, advancing U.S.-based solid-state production.Karma Automotive and Factorial Energy announced the first U.S. solid-state battery production program for passenger vehicles, debuting in the electric Karma Kaveya in 2027.Factorial’s momentum is global, with partners including Mercedes-Benz, Stellantis, and Hyundai/Kia, and mass production targeted for 2029.Gartner’s Pedro Pacheco: “This means there is now an ‘arms race’ to see who gets SSBs to market the fastest and most successfully.” 7-Eleven is quietly building a playbook for the future of frontline hiring. By combining recruiters, automation, and conversational AI, the convenience-store giant has dramatically cut hiring time, reduced ghosting, and freed up store managers to focus on running the business.Applicants start the process via QR codes that connect them to an AI text assistant named RITA, which gathers info and schedules store-level interviews automatically.After acquiring Speedway in 2021, 7-Eleven shifted from store-only hiring to a recruiter-supported, centralized model that drives better applicant flow.Automated hiring slashed time-to-hire from nearly two weeks to just three days, while improving retention and candidate quality.Automation has saved store leaders over 2 million hours per year, handling about 95% of the hiring process and enabling smarter, store-level recruiting spend.Rachel Allen emphasized the human-fJoin 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/

    14 min

  7. FEB 9

    The NADA Takeaway Show, Will Dealers Welcome Chinese OEMs?

    Shoot us a Text. Episode #1264: As the NADA Show wraps, we zoom out on what actually mattered, from a shift in how dealers are thinking about AI, to deeper vendor partnerships, to how dealers are thinking about Chinese vehicles Show Notes with links:  As the dust settles from another packed NADA Show, some of the most meaningful takeaways weren’t about flashy announcements, but mindset. Liza Borches shared reflections on leadership, partnerships, and why this year’s conversations felt more practical — and more ready for action.“AI is a strategy conversation, not a tool conversation. It’s less about adding new technology and more about using AI to help us solve problems and connect the tools and partners we already have.”“Partnership matters more than ever. Our vendor partners aren’t just providers — they’re collaborators helping us build better experiences for our customers and teams. The integration that our key partners are not just willing to do but excited to do is a gamechanger.” The idea of selling Chinese vehicles in the U.S. split the room at NADA. Dealers openly acknowledged the profit opportunity, even as trade groups and some store owners warned about subsidies, nationalism, and long-term consequences for American retail auto.Presidio Group president George Karolis said dealers are conflicted: “A majority of the dealer respondents saw it as a threat and opportunity — both… the vehicles are really good, slick and more affordable.”Several dealers privately said if Chinese OEMs solve affordability, politics won’t stop them from sellingCable Dahmer Automotive Group owner Carlos Ledezma took a pragmatic stance: “If that’s what the consumer is looking for, then we are going to have to pay attention to that.”NADA CEO Mike Stanton was blunt on policy: “It’s bad for our industry, it’s bad for our country, it’s bad for consumers,” while still conceding NADA wouldn’t block dealers from adding Chinese franchises.Ford Blue president Andrew Frick captured the dealer mindset: “It’s hard for a dealer not to look at that as an opportunity for them as an entrepreneur.”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/

    16 min

  8. FEB 6

    Friday AM Live from the 2026 NADA Show, The Rebound is Real, Rubik’s Cubes and Mortal Kombat

    Shoot us a Text. As we wrap up the NADA show this morning, we are energized. We’re hearing that this has been record years for a lot of industry partners, and dealers are optimistic and ready to try new things. Our friends at CarRx are our content partners today, and we’ve got Michelle Jackson, EVP of Sales to share with us a little bit more about their product and how they’re approaching the end of the year.    They’ve got a really cool both so we end the show playing Mortal Kombat and solving Rubik’s cubes. 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/

    10 min
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Paul J Daly and Kyle Mountsier don’t just read headlines, they make the most important connections across car dealerships, general retail, tech, and culture. The goal? To help automotive leaders think clearer and move faster in a world that refuses to slow down. Whether you’re running a rooftop, building a brand, or just trying to keep up with everything shifting in the business of selling cars, this is your regular stop for a shot of news, insight, and a little bit of chaos…always rooted in people-first thinking.  From the showroom to Silicon Valley.  From Wall Street to Main Street. Paul and Kyle connect the dots, keep it real, and make it make sense. Learn more at https://www.asotu.com

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