The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier ASOTU Podcasts

This Tuesday we’re talking about why GM is smiling from their robust financial performance in Q1. We also talk about a controversial toggle on Tesla’s website, as well as what companies are ignoring in their surveys. 


Show Notes with links:
General Motors is kicking off 2024 with a robust financial performance, boosting full-year guidance after a stellar first quarter.GM's net income soared by 24% in Q1, reaching $2.98 billion, driven by strong vehicle demand, especially in North America where revenue hit a first-quarter record of $36.1 billion.Adjusted earnings before interest and taxes grew to $3.9 billion, prompting GM to raise its full-year EBIT forecast by $500 million to between $12.5 billion and $14.5 billion.Despite new-vehicle prices expected to drop slightly, GM's pricing remained stable in Q1, supported by sales of small crossovers like the Chevrolet Trax and Buick Envista.Cost-cutting measures, including $300 million in reduced fixed costs from marketing and engineering, are on track to meet GM's $2 billion reduction goal by year-end."Globally, our team is leaning into every opportunity with a focus on profitability to build on our strong start to 2024," said CEO Mary Barra, indicating the company's proactive strategy amid challenges.


The Tesla toggle: Elon Musk recently tweeted a Model Y price starting below 30k. This was reflected on their website. The catch is that the price included calculated fuel savings based on an assumption of use. This could be adjusted and toggled off. Could Dealers get away with this? Are they violating the rules?Will they get in trouble? 


Customer satisfaction surveys are pervasive, a new Business Insider article explores whether they really help businesses, or just annoy customers with constant requests for feedback?Surveys have become a standard practice across industries, aiming to optimize customer experiences for business gains, not necessarily customer benefit.The spending on market research, specifically customer surveys, has ballooned to $80 billion annually, with a significant focus on monitoring and improving customer satisfaction metrics.Despite the intention to gather useful data, the overwhelming number of surveys has led to 'oversurveying', making many people less likely to respond, which paradoxically leads to more surveys being sent out.Companies are now focusing less on the quality of products and more on whether their offerings meet customer expectations; the current emphasis in surveys is on the entire customer experience, not just product quality. "Companies are using surveys to cling to unloyal customers. It’s much cheaper to keep a customer than acquire a new one," explains Brad Anderson of Qualtrics, highlighting the economic motives behind the survey onslaught.Hosts: Paul J Daly and Kyle Mountsier

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It’s a fresh week and we’re talking about the UAW’s landmark unionization victory at Volkswagen's Chattanooga plant. We also cover Dealer response and legal threats over new sales models from Scout and Sony Honda Mobility as well as Tesla's swift response to a safety recall with a riveting fix. 

In a historic win for the UAW, employees at Volkswagen's Chattanooga plant in Tennessee voted decisively to unionize, marking the UAW's first significant success in the South.
After two prior attempts, the UAW succeeded with 2,628 votes for and 985 against, setting a new course for worker representation in Southern automotive plants.This victory at Chattanooga, previously the only VW plant globally without union representation, may signal a broader shift in the U.S. auto industry.UAW President Shawn Fain celebrated the win, noting its potential to catalyze further unionization across the region: "Once you see the first domino fall, you're going to see a lot more follow."As Scout and Sony Honda Mobility venture into the U.S. market with plans to potentially bypass traditional dealership networks, dealer associations are gearing up for a possible legal confrontation.
State dealer associations are advocating for Scout and Sony Honda Mobility to adhere to the traditional franchised dealer model, citing legal and regulatory concerns with direct sales modelsThe dealer groups have voiced their readiness to challenge these plans legally, emphasizing the advantages of the franchise model in a nationwide advertising campaign which included taking out a full page ad in Automotive NewsGeoffrey Pohanka, hinted that the absence of a clear commitment to using dealerships might suggest a move towards direct sales, stating, "Silence speaks."John Devlin, the 2024 chairman and CEO of the Pennsylvania Automotive Association, expressed strong sentiments about the situation: "After two years of asking and getting nothing, frustration is very high." He also added, "We think this is going down the wrong road. I hope that there's good news at the end of this, but we wanted to proactively get out ahead of it."

Tesla has responded swiftly to a significant safety concern with the Cybertruck's accelerator pedal by introducing a rivet-based solution to prevent the pedal pad from slipping off.
Tesla temporarily stopped Cybertruck deliveries and issued a recall after discovering that the pedal pad could detach and become lodged, causing the vehicle to accelerate uncontrollably.The repair involves a fast but precise procedure where Tesla technicians drill a hole and install a rivet to secure the pedal pad, ensuring it stays in place.Total materials, less than $1.  Total time, less than  1 minute. The fix, demonstrated at Tesla's "Cyber Takeover" event in California, is touted as a quick "35-second recall fix," though initial setup involves critical measurements and checks.Hosts: Paul J Daly and Kyle Mountsier

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Today we're on with Head Writer Chris Reeves talking about how Car Dealers and OEMs are investing in generations. We also have a super secret promo code for ASOTUCON.com
Hosts: Paul J Daly and Kyle Mountsier

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It’s Friday already. Today we’re talking about Tesla's official Cybertruck recall. We also discuss GM's innovative move into hydrogen fuel as a diesel alternative, as well as the high-stakes wealth race in Silicon Valley as Mark Zuckerberg surpasses Elon Musk to become the world's third-richest person. 


Show Notes with links:
They can’t fix this one with an over the air update. As a follow up to our story Monday, nearly 3,900 Cybertrucks from the 2024 model year are being recalled due to a risk that the accelerator pedal may dislodge and become trapped, potentially increasing crash risks.The defect could affect both accelerator and brake pedal torque, posing significant safety concerns, according to the National Highway Traffic Safety Administration.Deliveries of the Cybertruck are now officially delayed as Tesla addresses these issues with the accelerator pedal."Tesla is not aware of any injuries related to this defect," assured the company in its communication with the NHTSA. Tesla plans to notify affected owners in June 2024.It is unclear how the company plans to repair affected vehicles


GM is spearheading a new project to replace diesel engines with hydrogen fuel cells, debuting a medium-duty truck powered by hydrogen for Southern Co. in Georgia.The Chevrolet Silverado 5500 truck will feature GM's Hydrotec fuel cells, offering over 300 miles of range, weighs almost 20k pounds, and has the ability to generate 300 kilowatts—enough to power 250 homes.This initiative is part of the $65 million SuperTruck 3 program by the U.S. Department of Energy, aiming to explore hydrogen fuel's potential in heavy-duty vehicles and establish a microgrid for hydrogen fueling."This is the most exciting transformation I've been part of at GM," shared Mark Dickens, vehicle chief engineer for future fuel cell products, emphasizing the shift from concept to real-world application.


Mark Zuckerberg has overtaken Elon Musk to become the world's third-richest person, with a net worth of $175 billion.Meta Platforms' stock has soared by 43% year-to-date, boosting Zuckerberg's wealth by $47.3 billion this year, while Tesla shares have plummeted nearly 40%, causing Musk to lose $55.2 billion.The stark contrast in company performance has significantly shifted their financial standings, with Zuckerberg's wealth heavily tied to Meta Platforms and Musk's spread across multiple ventures.Despite their competitive past, including a proposed but never realized cage match, their fortunes are now diverging sharply due to differing business outcomes.Hosts: Paul J Daly and Kyle Mountsier

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Thursday is upon us as we talk about another EV-only carmaker announcing layoffs. We also talk about Ford’s new model year for the F150 Lightning, as well as a potential standard-setter for employee AI training. 


Show Notes with links:
It seems Tesla isn’t the only non-Dealership model EV maker laying off staff as Rivian is making its second round of job cuts this year, impacting about 150 support and back-office roles to align with market demands.This decision follows a 10% reduction in salaried staff earlier, targeting product and commercial EV teams, as the company faces high interest rates and production scaling issues.Rivian aims to achieve gross margin positivity by year-end, despite current economic headwinds and reduced consumer demand for EVs.In an emailed statement, Rivian said, ““We continue to work to right-size the business and ensure alignment to our priorities. This was a difficult decision, but a necessary one to support our goal to be gross margin positive by the end of the year.”Earlier this week, Tesla’s Elon Musk said on Twitter that laying off 10% of their staff was an action that needs to be done every five years or so to align the company for the next stage of growth


As the model year cycle ticks another year forward, Ford is opening online orders for the 2024 model of the F150 Lightning, featuring new tech enhancements and reduced pricing.Following a temporary stop-ship for quality checks Ford has shipments of the 2024 F-150 Lightning from its Rouge Electric Vehicle facilityThe starting The electric pickup starts at just over $54k for its Pro model and has also seen price reductions up to $5,500 on select trims, with the new Flash trim now starting at $67,995 featuring the highest range available at 320 milesEnhanced features include convenience features like a charging display that estimates time to finish, a Vapor Heat Pump System for improved efficiency, and expanded access to Tesla’s Supercharger network.


IKEA is potentially setting a new benchmark in employee development with a comprehensive AI literacy initiative aimed at equipping its workforce with essential skills to navigate the evolving AI landscape.IKEA has launched AI literacy training targeting 3,000 co-workers and 500 leaders to foster a deep understanding of artificial intelligence within the organization.The training includes courses like AI Fundamentals and specialized programs on Generative AI and Responsible AI and Algorithmic Training for Ethics.IKEA introduces 'Hej Copilot', an AI tool developed with Microsoft, enhancing productivity by assisting employees with various tasks."Our vision is clear. It’s about enhancing the capabilities of co-workers through technology," states Parag Parekh, chief digital officer at IKEA RetailHosts: Paul J Daly and Kyle Mountsier

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It’s a notable Wednesday as a looming UAW vote at the Chattanooga VW plant gets under way. We’re also talking about a new set of “trust principles” regarding autonomous vehicles, as well as a brand collab between Carvana and pro gaming. 


The voting begins this morning to determine whether or not to unionize the VW plant in Chattanooga.  In a dramatic move yesterday, Southern governors issued cautioning statements directed at the 4300 auto workers at the plant, warning that  voting for UAW union representation could threaten their jobs.Southern governors from Tennessee, Alabama, Georgia, Mississippi, South Carolina, Texas have publicly opposed the unionization, linking it to potential job risks and investment losses.This union drive is part of the UAW's broader strategy to organize nonunion auto factories across the South, affecting nearly 150,000 workers.Volkswagen has expressed neutrality, respecting the workers' right to a democratic vote and ensuring privacy in the voting process.Tennessee Governor Bill Lee said, "We are seeing in the fallout of the Detroit Three strike with those automakers rethinking investments and cutting jobs. Putting businesses in our states in that position is the last thing we want to do."

In a call back to 2019, it looks like autonomy may be in the sights of industry experts and culture as yesterday the Autonomous Vehicle Industry Association (AVIA) published their “Trust Principles.”Self-driving cars like those from Cruise and Waymo have contributed to a growing public skepticism, following several troubling incidents including accidents and traffic disruptions.AVIA aims to enhance community relations and educate the public about AVs, planning to establish a national council with law enforcement and first responders to improve emergency situation responses.Recent events underscore the urgency of building trust; a Cruise vehicle in San Francisco was involved in a serious incident last October, raising concerns over safety and transparency.The industry's broader challenge includes distancing itself from systems like Tesla’s Full Self-Driving, which are often confused with fully autonomous technologies.

Carvana is collaborating with NRG and Rocket League influencer Musty for a unique giveaway, offering gamers a chance to win a Tesla Model 3, blending the excitement of esports with a high-stakes prize.Musty will personally deliver the Tesla to the winner, enhancing the connection between virtual gaming achievements and tangible rewards.The giveaway follows the successful Carvana | NRG Combine event, which highlighted emerging talent in the esports arena and awarded a $10,000 prize and a content creator contract.Carvana's Ryan Keeton and NRG's Brandon Tortora emphasize their commitment to memorable experiences and further engaging the esports community.Hosts: Paul J Daly and Kyle Mountsier

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