Automotive State of The Union

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. 7H AGO

    OEMs Talk Affordability, Tesla Misses In Q1, Why Buyers Are Taking Longer Than Ever

    Shoot us a Text. Episode #1310: The market squeeze is real as affordability reshapes buying behavior across the board. Tesla feels the EV slowdown while Rivian pivots toward value, and new data shows Gen Z shoppers aren’t impulsive, just taking their time. As costs stack up across the ownership lifecycle, automakers are getting real about affordability and how it affects product strategy, pricing, and what actually moves on the lot. Subaru is leaning into efficiency and practicality as gas prices rise. “We’re not making V-8 engines…we’ve got four-cylinders, hybrids and electrics. when gas is getting up to $4 and $5, and those things that are sucking gas like crazy, that’s not Subaru.” said marketing head Alan Bethke.That shift is showing up in shopper behavior, with Subaru seeing “a lot more movement on our lower trim levels” as buyers hunt for value.Across the board, consumers are trading down and prioritizing fuel economy, pushing brands to rethink mix and messaging.Even growth brands are leaning into affordability through electrification—Kia reported hybrid sales up 73% as buyers look for cost relief at the pump.At Stellantis, CEO Antonio Filosa is tying their turnaround directly to demand alignment: the strategy is working by “delivering the products our customers want and love.Tesla’s Q1 deliveries came in lighter than expected with U.S. deliveries estimated down 4.6%, showing continued pressure on EV demand as incentives fade and global performance varies. Tesla delivered 358,023 vehicles globally, missing expectations and marking its weakest quarter in a year despite a 6.3% YoY increase.Rivian offered a contrast, with deliveries up 20% year-over-year—but that growth comes off a weaker base and still represents just over 10,000 units for the quarter.Rivian is holding steady on its 2026 outlook (62K–67K units) and launching its lower-priced R2, signaling a clear shift toward more accessible EVs.Wedbush’s Dan Ives called Tesla’s results “underwhelming,” but “not a shock…given the current EV backdrop,” as the company bets on future plays like robotaxis and AI.New data shows younger buyers aren’t rushing purchases. They’re researching more, delaying decisions, and blending online and in-store shopping in ways that challenge old assumptions. Half of Gen Z shoppers sit on purchases for two+ days, more than double the rate of boomers, signaling a longer, more deliberate buying cycle.Only 40% of shoppers come in knowing what they want—most are browsing, comparing, and figuring it out in real time.Even digital-first buyers aren’t fully online—53% of Gen Z still go in-store to browse before buying.Despite the hesitation, younger buyers are more willing to spend long-term, with Gen Z and millennials 50% more likely to increase spending in the future.“Marketers can no longer rely on broad assumptions…brands must…out-maneuvJoin 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. 1D AGO

    Q1 Sales Cool, New Vehicles Debut at NY Auto Show, Artemis II Launches To The Moon

    Shoot us a Text. Episode #1309: The market cools after a hot start to 2025, the New York Auto Show brings fresh product and EV momentum into focus, and NASA launches humans back toward the moon for the first time in over 50 years. March brought the new car market back down to earth, as high prices, rising gas costs, and more cautious buyers cooled Q1 sales after last year’s unusually hot start. Q1 U.S. light-vehicle sales fell 4.3% YoY to 2.78 million units, with many major automakers posting declines.GM dropped 9.6%, with steep losses at Buick and Cadillac, while Toyota, Honda, Nissan, Subaru, Mazda, and BMW also lost ground.Hyundai and Kia were bright spots, both setting first-quarter records as hybrids surged.Stellantis kept its turnaround rolling with a 4.1% gain, helped by Jeep and a 20% jump at Ram, marking its third straight quarterly sales increase.Cox’s Jeremy Robb summed up the mood: “Consumers haven’t left the market, but they’re getting more selective. Every new headline and cost increase makes them more cautious about pulling the trigger on a big-ticket item.”The New York Auto Show is back, bringing a mix of fresh, bold concepts, and future-looking EVs, giving dealers a glimpse at where product, design, and powertrains are heading next. Chrysler refreshed the Pacifica with a bold new look and trims, but notably dropped the plug-in hybrid, while still leaning on its Stow ‘n Go advantage.Kia and Subaru leaned into electrification, with the EV3 targeting ~320 miles of range and the Seltos adding a hybrid for the first time.Subaru’s new all-electric, three-row “Getaway” SUV targets growing family demand for EV space and utility, with 300+ miles of range and arrival later this year.Hyundai’s rugged Boulder Concept signals a move into true off-road competition, aiming squarely at Bronco and Wrangler territory.The show highlights the trend of more hybrids, more EVs, and more niche vehicles—all designed to give today’s cautious buyer a reason to jump back in.NASA just launched humans back toward the moon for the first time in over 50 years, kicking off the Artemis II mission and signaling a major step toward putting astronauts back on the lunar surface. The mission kicked off with a powerful evening launch from Kennedy Space Center, marking the first time since 1972 that astronauts have blasted off on a mission bound for the moon.After launch, the crew will spend a full day testing the Orion spacecraft before committing to the multi-day trip around the moon.The mission won’t land on the moon, but will loop around the far side—offering views no human has ever seen directly.This flight is a critical proving ground for future missions, including planned lunar landings and long-term moon operations later this decade.NASA Administrator Jared Isaacman said: “This is the opening act… for missions that will send astronauJoin 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/

    13 min
  3. 2D AGO

    NY Auto Forum Takeaways, Hallway Conversations > Keynotes

    Shoot us a Text. Episode #1308: Live from the New York Auto Forum (brought to you by our friends at Force Marketing), we unpack the real conversations shaping the industry, and why sometimes a chat in a hallway is more impactful than anything said on stage (did someone say ASOTU CON?) Show Notes with links: Paul and Kyle break down the real conversations shaping Q2—EV transitions, AI, global competition—and why the most important moments aren’t on stage. Plus, Liza Borches shares how service innovation and community impact are redefining dealership value.The NY Auto Forum delivers high-level access, but the real value happens in small, candid conversations that shift perspective and drive collaboration.Industry focus is clear: EV adoption (especially used), AI integration, and rising global pressure—particularly from China—are top of mind.Dealers are being challenged to innovate during strong service years, not wait for downturns—especially around video inspections and transparency.Technician shortages and change resistance remain barriers, making the “why” behind new processes more critical than ever.Liza Borches: “If customers don’t see the value in us being part of the process, we won’t be here one day.”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. 3D AGO

    Live from the NY Auto Forum, Checking in on Chinese OEMs in Mexico, GM Bets On Big Gas Trucks

    Shoot us a Text. Episode #1307: Today we’re at the NY Auto Forum (thanks to our friends at Force Marketing) for a day of interviews and content with some of the industry’s finest. Plus, Chinese brands promise profits in Mexico but miss on execution, while GM bets big on trucks as the market softens. Show Notes with links: Chinese automakers are gaining traction globally but early dealer experiences in Mexico are flashing caution signs. While interest is high, profitability struggles and weak factory support are raising red flags for retailers considering jumping in.Mexican dealers ranked BYD as the most desirable new franchise, but it was the only Chinese brand to crack the top 10 in the survey.Many Chinese brands entered Mexico targeting 50,000 annual sales but are achieving closer to half that, leaving dealers chasing volume that is not there.Dealer-factory relations lag significantly, with top legacy brands like Toyota and Chevrolet leading, while Chinese brands like MG ranked 7th, Great Wall 13th, and Chery 15th.Rapid expansion exposed weak aftersales infrastructure, especially in parts distribution and service, limiting customer satisfaction and repeat business.“They arrived focused on selling, selling, selling… there is a lot of work to do… in aftersales service,” said JD Power’s Gerardo Gomez. GM is leaning into what’s working. Despite rising gas prices and softer overall sales forecasts, the automaker is boosting heavy-duty truck production, signaling continued strength in one of the industry’s most profitable segments.GM will add a sixth production day at its Flint Assembly plant, increasing output by an estimated 40,000 to 50,000 trucks annually.The plant already produces about 1,100 heavy-duty Silverado and Sierra pickups daily, running three shifts around the clock.The move appears aimed at gaining share from Ford, which is also ramping production and skipping summer shutdowns to keep up.Heavy-duty trucks remain profit drivers, with prices starting around $50,000 and often reaching six figures with options.GM CFO Paul Jacobson doesn’t think the current economic climate will affect demand yet, saying: “Usually it takes four to six months of sustained, high oil prices before people start to think… maybe I should buy down.”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
  5. 4D AGO

    $8B Off-Lease EV Loss, 800 Mile Range in 5 Minutes, Gen Z Ditches Brands

    Shoot us a Text. Episode #1306: A surge of off-lease EVs could bring billions in losses and create new opportunities for dealers. Meanwhile, battery breakthroughs are back in the spotlight, and Gen Z is reshaping how brands earn attention and loyalty. Show Notes with links: A flood of off-lease EVs is heading back to market, and they’re not worth what anyone thought. With resale values dropping fast, automakers and lenders are staring down billions in losses, and dealers are about to become the pressure valve.EV leases are coming back worth ~$10K less than expected, creating a potential $8B industry loss by 2028.Off-lease EV volume will surge to nearly 800,000 units, doubling share of used supply in just a few years.Tesla and GM carry the biggest exposure, with ~229K and ~102K leased EVs respectively in 2025.Captive lenders are leaning on dealers and auctions, offering faster remarketing, incentives, and even CPO lease pilots to move units.David Whiston, Morningstar: “I don’t see anything good about this for the captives… but it is not going to bankrupt anybody.” For years, EV critics have pointed to battery limitations, and they weren’t wrong. Now new solid-state claims are emerging as the industry continues working toward longer range, faster charging, and lower costs.Finnish startup Donut Lab claims a 5-minute charging, 800+ mile solid-state battery, but most of the industry is skeptical.Solid-state batteries could double range, cut weight, and eliminate many EV pain points—if they actually scale.Meanwhile, today’s tech is quietly improving fast, with China pushing 10-minute charging and 600+ mile ranges using existing batteries.OEMs like Toyota, Mercedes, and GM are all racing toward solid-state, but timelines still point to late-decade reality, not tomorrow.Kurt Kelty, GM’s vice president of batteries and sustainability was skeptical: “Most ‘eye-popping’ announcements are more buzz than substance.” Gen Z is paying less attention to big brands. And that shift is starting to change how products get noticed and chosen.Gen Z still picks national brands most often, but gives them 24% less attention than boomers.Nearly 40% of Gen Z decisions hinge on factors many brands miss—modern design, clear messaging, values, and scroll-stopping packaging.Younger buyers are trading down in staples while spending more on identity-driven categories like wellness and beauty.Traditional brand recognition is weakening as private label and challenger brands gain visibility.Viki Zabala, First Insight: “The shelf functions like a social feed — and Gen Z scrolls past what feels dated.”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
  6. MAR 27

    Doc Fees Must Be Included In Advertising, GM Grows Tech Number, Gen Alpha Starts Spending

    Shoot us a Text. Episode #1304: The FTC gave NADA clarity on their recent warning letters, GM has significantly cut down on their technician shortage and Gen Alpha is flexing their spending power. The FTC gave NADA direct clarity on advertising expectations, and the agency drew a bright line: the price customers see first must be the real price they can actually pay. After the Federal Trade Commission sent warning letters to 97 dealerships on March 13, NADA reached out for clarification, according to ComplyAutoThe FTC says the most prominent advertised price must be the all-in price—only taxes, title, and registration can be excluded.Doc fees must now be included in that headline number, regardless of state-level nuances.Additional pricing details are allowed, but must be less prominent, clearly explained, and not misleading.The FTC framed this initiative as part of the Trump Administration's broader push for transparent pricing in the marketplace and enforcement actions against dealers are expected to follow.NADA is hosting a webinar on Monday, April 6 with a senior FTC attorney to provide more information about the warning letters and the agency's views of dealer advertisingGM dealers are gaining ground in the technician shortage, with stronger pipelines and more trained talent hitting the floor. But as EVs and advanced tech ramp up, the need for skilled service pros is still outpacing supply. GM dealers now employ 23% more technicians than in 2021, showing real traction from training investments.Apprenticeships are up 18%, and “world-class” technicians—top certification level—have doubled.The gap remains steep: industry needs ~76K techs yearly, but only ~39K are graduating from programs.GM is attacking the problem from all angles—schools, military programs, and hands-on training with 250 donated vehicles annually.“If we want the future workforce to be ready and able to service our vehicles, they have to have the product to work on.” — Aaron Charbonneau, GM director of dealer, service and warranty operationsGen Alpha isn’t waiting to grow up—they’re already shaping buying decisions and making purchases. A new PwC report shows kids as young as 7 are actively influencing carts, clicks, and brand loyalty in ways dealers (and brands) can’t ignore. 52% of kids 7–14 have added items to shared online carts.A quarter have ordered food themselves through apps.Smartphone ownership hits 89% by ages 13–14, fueling direct purchasing.YouTube, gaming, and streaming dominate attention—traditional ads miss them.The report says, “Generation Alpha isn’t a future consumer segment…they’re participating now.”Today’s show is brought to you by HeyGreenlight. HeyGreenlight’s Wingman gives your sales and BDC team live, real-time guidance so they consistent 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/

    13 min
  7. MAR 26

    China’s Dealer Meltdown, Stellantis Parking Police, AI Can't Actually Learn

    Shoot us a Text. Episode #1303: China’s price war is crushing dealers while a quirky Stellantis policy highlights a very different retail reality here at home. Plus, a new AI test reshapes how we define intelligence China’s brutal EV price war is crushing dealership profitability, with more than half now losing money. As automakers slash prices to compete, retailers are stuck selling cars at a loss just to keep up.56% of Chinese dealerships were unprofitable in 2025, up sharply from 42% the year before.A staggering 82% of dealers sold new cars below cost, pushing margins to a negative 26%.Financing and insurance profits also dropped after tighter lending regulations hit dealer income streams.The only bright spot: service and parts, with margins soaring to 81% as dealers pivot to survival mode.Outlook remains bleak, with just 23% of dealers expecting market growth in 2026. At Stellantis HQ, what you drive to work might determine where you park and whether you get a warning. The automaker is reinforcing brand loyalty with preferred parking… and some awkward consequences.Employees have reported getting tickets for parking non-Stellantis vehicles in preferred spots.Prime parking is reserved for company brands, with violators risking warnings, or even getting booted.The policy reflects a long-standing Detroit culture of encouraging employees to drive what they build.Confusion happens, one employee got ticketed for parking their Eagle Talon in the right spotAs one observer put it, there’s “strong motivation” to drive company cars, especially when the walk can be up to 30 minutes from the farthest lots A new AI benchmark just dropped: and it’s exposing a major gap between human intuition and machine intelligence. ARC-AGI-3 tests whether AI can learn on the fly. Spoiler: it can’t… at least not yet.Every major AI model scored under 1%, while humans solved everything on the first try without instructions.The test measures real adaptability—throwing AI into brand-new environments with zero training or prompts.Critics say the scoring system is stacked, but the bigger debate is shifting to how we measure intelligence at all.ARC’s creator argues current AI only works because humans build complex “scaffolding” around it. True AGI shouldn’t need that. Today’s show is brought to you by HeyGreenlight. HeyGreenlight’s Wingman gives your sales and BDC team live, real-time guidance so they consistently say the right things, at the right time, on every call. 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/

    13 min
5
out of 5
31 Ratings

About

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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