Public Gross Profits Down, Deep Dive on UAW Boss Fain, New San Fran

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We throttle down on Tuesday as we rip into the week talking about a gross profit decline among the publics. We also get a little deeper on UAW President Shawn Fain as well as a new city created from scratch in San Francisco.

Show Notes with links:

• As projected earlier this summer, F&I profits per vehicle are dropping and 4 of the 6 publicly traded groups report proof in their Q2 earnings. 
  • CFO Joe Lower said on a July 21 earnings call that AutoNation averages more than two products per deal, which has led to more than 70 percent of its F&I profits coming from products.
  • Analysts point to affordability issues impacting customers’ ability to purchase protection products and falling vehicle prices impacting rate markup profitability.
  • Continued lifts in F&I profits are expected as online retailing continues to grow.
  • AutoNation and Lithia both cited strong growth in their captive finance arms and expect them to drive future profitability.
• As the strike rhetoric between the UAW and Detroit's Big 3 keeps heating up, many are working to learn more about the rather blunt personality. A WSJ article over the weekend took a deeper dive into the background, preferences, and quirks that make UAW President Shawn Fain tick.
  • Grew up in a politically active family, father was a local policeman , mother was a nurse
  • Started his career as a union electrician for Chrysler
  • Carries one of his grandfathers paystubs from the 1940’s 
  • First candidate to unseat the incumbent in 70 years, won by 1%
  • Appreciates Legacy: Frequently references Walter Reuther, the 1940s union boss.
  • Influenced by Varied Figures: Counts civil-rights activist John Lewis and college-basketball coach John Wooden among his inspirations.
  • Music Taste: Fan of ’90s hip-hop, entered a rally to Eminem’s “Not Afraid.”
  • Independence: When asked about his role model, he emphasizes his individuality, stating, "I am who I am."
  • Watches the TV show “Ted Lasso” with his daughter.
  • Made a sarcastic remark about Indiana being known for "cornfields and communism" when asked about a comment linking him to Trotsky.
  • Owns a placard that reads: “I don’t sugar coat s—. I’m not Willy Wonka.”
• Some tech billionaires are planning a city with big promises outside of San Francisco called ‘California Forever’.
  • The website for the city contains images almost certainly AI generated of a walkable town with community as the focus.
  • The development management company also cites that they have a focus on rebuilding the highway and road infrastructure around the community, something other planned communities are intentionally excluding..
  • Local job growth is planned to be spurred by education paths with trades as a focus…hey…technicians in San Francisco!?

Hosts: Paul J Daly and Kyle Mountsier

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