Automotive State of The Union

ASOTU Podcasts
  • 5.0 (31)
  • 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. 2H AGO

    Mazda’s Identity Crisis, Ford’s F-150 Setback, Ferrari Goes Full EV

    Shoot us a Text. Episode #1354: Today we talk about Mazda trying to define what the brand actually stands for, Ford battling yet another F-150 production headache while inventory stays tight, and Ferrari shocking enthusiasts with a futuristic $640k EV designed alongside former Apple design legend Jony Ive. Show Notes with links: Mazda’s U.S. CEO says the brand’s biggest challenge isn’t product, pricing, or even tariffs—it’s clarity. As Mazda pushes toward 500,000 annual U.S. sales, Tom Donnelly says dealers will play the starring role in making the brand more distinctive and desirable.Mazda has hovered around 400,000 U.S. sales for two years and believes stronger brand identity is the path to 500,000 units.Dealers were challenged to rethink customer experience with shorter processes, stronger relationships, and what Mazda calls a more “sticky” ownership experience.Donnelly emphasized affordability as a major opportunity, noting Mazda’s average transaction price is around $39,000 compared to the industry average above $51,000.Tariffs, incentives, and shifting production have pressured profitability, but Mazda says strategic moves like shifting Mazda3 sedan production to Japan helped improve earnings.“If you walked out of this hotel and asked 10 people what Mazda stands for, you’d get 10 different answers. That is my keeps-me-up-at-night thing.” — Tom Donnelly, CEO of Mazda North American Operations. Ford finally started climbing out of its F-150 inventory hole after last year’s aluminum supplier fire… and then a broken hood die shut the line down again. The pause may only last a few days, but when you’re already 60,000 trucks behind, every hour matters.Ford paused F-150 production late last week after a hood die reportedly broke at a nearby stamping plant that forms the truck’s aluminum hood panels.The Dearborn plant was expected to sit idle Thursday night through at least Saturday, with Memorial Day potentially stretching the shutdown to four days.With two 10-hour shifts running daily, the downtime could cost Ford roughly 2,500 trucks at a time when inventory is already down more than 40% year-over-year.Ford is reportedly considering “super Saturday” or “super Sunday” shifts to claw back lost production and keep dealers supplied heading into summer truck season. Ferrari officially pulled the cover off its first fully electric vehicle, the Luce, and let’s just say… the internet has thoughts. Designed with former Apple design chief Jony Ive, the $640,000 EV swaps engine roar for amplified sound and tradition for experimentation.The Ferrari Luce is the brand’s first EV and first-ever five-seat Ferrari, using four electric motors to hit 0–60 in under 2.5 seconds with a top speed above 190 mph.Ferrari partnered with legendary Apple designer Jony Ive, creating a glass-heavy, ultra-minimal interior meant to feel more “analog” than tech gadget.Ferrari says range wasn’t the priority, with the Luce targeting about 330 miles despite its massive battery pack.Online reactions were… spicy. Many enthusiasts blasted the design for straying too far from Ferrari tradition, while Ferrari shares dropped roughly 6% after the reveal.“As a car becomes electric, it doesn’t mean that it needs to be a consumer electronics object.” — Ferrari Chairman John ElkannJoin 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/

    15 min

  2. 1D AGO

    Memorial Day Traffic and The Return of Big Incentives

    Shoot us a Text. Episode #1353: Memorial Day travelers are hitting the road in record numbers while automakers roll out massive incentives to move inventory. Show Notes with links: Memorial Day originated in the aftermath of the Civil War as "Decoration Day"—a time for communities to decorate the graves of fallen soldiers with flowers—and later evolved into a federal holiday honoring all American military personnel who have died in service.  An estimated 45 million Americans are packing up for Memorial Day weekend, and 87% of them are doing it the old-fashioned way: by car. Even with higher gas prices, travelers are choosing the road, the snacks, and the “are we there yet?” energy.AAA projects a record 45 million travelers will go 50+ miles from home, up 0.4% from last year.About 39.1 million people will travel by car, despite gas averaging $4.52 per gallon as of May 11.Air travel is also up slightly, with 3.66 million domestic flyers expected. Round-trip domestic tickets are averaging $800, down 6% year over year.Other transportation methods including buses, trains, and cruises are expected to grow 5.3%, helped by a strong Alaska cruise season.AAA Travel’s Stacey Barber said, “Despite higher fuel prices, many people are prioritizing leisure travel during holiday breaks.” New car shoppers heading into Memorial Day weekend are being greeted with something we haven’t seen much of lately: serious incentives. From EVs to pickups to hydrogen sedans, automakers are tossing thousands on the hood to clear inventory and spark demand.Hyundai is offering $7,500 off the 2025 Ioniq 6, nearly 19% of the car’s starting MSRP, as dealers work through leftover inventory.Chevy is putting up to $9,000 on the hood of the 2026 Silverado 1500, one of the biggest incentive percentages on the market at over 22%.Hyundai’s new three-row Ioniq 9 EV gets a $10,000 incentive as the automaker looks to boost slower-than-expected sales.Toyota may win the “please just take it” award with a staggering $35,000 incentive on the hydrogen-powered Mirai, plus 0% financing for 72 months.The story behind many of these incentives? Rising inventories, slower EV demand, and OEMs trying to move leftover or underperforming models before summer heats up.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/

    9 min

  3. 3D AGO

    How Tech Partners Responded To The Vehicles For Change Giveaways

    Shoot us a Text. On this Saturday, Chris joins Paul and Kyle to talk about the Vehicles for Change Car Giveaways from last week at ASOTU CON, and how he was able to spend time with the kids of the families who received the cars. It was a powerful reminder of why we do what we do, and the impact that retail auto can have. 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/

    9 min

  4. 4D AGO

    May Demand Holds Strong, AI Car Shopping Advice, Ford Bird Sanctuary

    Shoot us a Text. Episode #1351: Today we talk about the growing affordability squeeze facing car buyers, why dealerships are now negotiating with customers and ChatGPT at the same time, and the Kansas Ford dealer whose sold F-250 is temporarily protected by federal bird law Show Notes with links: New-vehicle demand is holding strong, but affordability is still doing consumers no favors. Higher prices, rising monthly payments, and stretched loan terms continue shaping how buyers shop and finance in 2026.Cox Automotive says the average new-vehicle monthly payment climbed to $757 in April, while the average new-vehicle loan rate increased to 9.45%. Buyers now need 35.2 weeks of median income to afford the average new vehicle.JD Power projects May average monthly payments will trend even higher toward $810 as consumers continue battling affordability pressure.Buyers are leaning harder on longer loan terms, with 13.4% of loans now stretching to 84 months or longer.Negative equity is becoming a bigger issue too, with more than 30% of trade-ins carrying negative equity year over year.Despite all of that, demand remains strong. JD Power forecasts May retail sales will rise 6% year over year as incentives increase and interest rates slowly improve. AI is officially part of the showroom process. More shoppers are showing up armed with pricing advice from ChatGPT and Claude, pushing dealers to sharpen how they explain value beyond the numbers.A customer at Beaver Toyota of Cumming tried to renegotiate a Grand Highlander deal after consulting ChatGPT and Claude overnight.The dealership kept the deal alive by focusing on added value including a lifetime powertrain warranty, oil changes, and roadside assistance.Cox Automotive says 17% of new-car shoppers and 11% of used-car shoppers are already using AI tools during the buying process.Vincue executive Daniel Govaer is developing a white paper to help dealerships respond to AI-driven objections and pricing conversations.“I’m trying to get the word out that there is life in negotiating with AI. This is just another opportunity for us to adapt.” — Daniel Govaer One Kansas Ford dealer sold an F-250 that can’t be delivered yet because a robin built a nest on the truck, laid eggs, and now the whole thing is federally protected. Somewhere, a customer is financing both a pickup and a tiny wildlife preserve.Employees at Olathe Ford Lincoln discovered a robin’s nest on the front passenger-side tire of a black F-250 back in early May.The eggs hatched on May 14, and under the Migratory Bird Treaty Act, the dealership legally cannot move the truck until the birds leave the nest.The dealership thanked the customer for being patient while the baby robins grow up and move out.Staff say they’ve become emotionally invested in the birds, joking that the dealership is slowly turning into an animal rescue.One employee told local news: “We found some cats in the cars before… and just today, someone came in to get their oil changed, and we lifted up the hood, and there was a mama possum with about seven baby possums.”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. 5D AGO

    Stellantis Bets on Affordability, NADA x VFC, Bojangles EV Charging

    Shoot us a Text. Episode #1350: Today we’re talking about Stellantis betting big on affordable vehicles and platform consolidation, NADA helping dealers put families on the road through a new national partnership, and Bojangles turning EV charging into a side of biscuits with its new “charge-and-dine” concept. Stellantis is laying out its “FaSTLAne 2030” plan, and for dealers, the headline is simple: more affordable metal is coming. The automaker says North America will get nine vehicles under $40,000 by 2030, with two slipping under the $30,000 mark.Stellantis’ five-year, $70B plan sends 70% of global investment toward Jeep, Ram, Peugeot, Fiat and Pro One.In North America, Stellantis is targeting 25% revenue growth, 35% volume growth and 11 all-new vehicles.The company expects U.S. factory utilization to reach 80% by 2030, helped by increased domestic production.Globally, Stellantis plans to simplify 50% of its vehicles around three core platforms, including the new “STLA One” architecture designed to boost efficiency, lower costs and increase shared components across brands.CEO Antonio Filosa said, “FaSTLAne 2030 is the result of months of disciplined work across the company.” NADA and Vehicles for Change are teaming up nationally to help dealers put more families on the road to stability. The new partnership gives dealers a turnkey way to donate vehicles and support low-income families needing reliable transportation for work, childcare and daily life.NADA and Vehicles for Change will officially launch a national dealer partnership on May 27 in Pennsylvania.#1 Cochran Buick GMC will donate two vehicles to local families during the kickoff event as an example for dealers nationwide.The program includes a dealer “playbook” with step-by-step guidance for stores wanting to participate in their own communities.Vehicles for Change says it has already helped more than 8,200 families gain affordable transportation through its Keys to Independence program.NADA Chairman Rob Cochran said, “This event demonstrates the powerful impact dealers can have.” Bojangles is entering the EV charging game, turning fried chicken stops into charging stops. The chain just launched its first EV charging station in Savannah, Georgia, pitching a new “charge-and-dine” experience as it looks to expand chargers nationwide.The company partnered with XLR8 America and Energy and Environmental Design Services to bring level 2 and level 3 chargers to future locations.Bojangles says the goal is to transform charging downtime into a hospitality experience built around food, comfort and convenience.The company says its charging network is designed for more than 97% uptime as EV adoption continues to grow.CIO Richard Del Valle said, “This is about more than charging vehicles. It’s about redefining the stop along the way.”“At XLR8 America, our philosophy is simple: charge where you park, not park where you charge,” XLR8 America CEO Frank O’Connor said. “Bojangles gets that. When a driver pulls in for a Bo-Berry Biscuit and the battery tops off while they dine, that’s not a coincidence — that’s the charge-and-dine experience made real.”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

  6. 6D AGO

    Mitsubishi Tightens Up, S&P Global & TrueCar Take On Transparency, Retro Pizza Huts

    Shoot us a Text. Episode #1349: Today we talk about Mitsubishi cutting weak dealers while betting on a product comeback, the growing FTC pressure pushing vendors toward all-in pricing transparency, and Pizza Hut discovering the hottest new trend in retail… 1990s nostalgia complete with red cups and Pac-Man. Mitsubishi is shrinking its dealer network while promising a future product comeback. The brand has cut underperforming stores, frustrated some retailers with low profits and aging products, but says a new EV and refreshed lineup could turn things around.Mitsubishi’s U.S. dealer count has dropped 16% since 2019, falling from 355 stores to just under 300 today.CEO Mark Chaffin says the strategy is “quality over quantity,” replacing low-volume stores with higher-performing operators expected to sell 3-5x more vehicles.Dealers say profits are razor thin, with many relying on used cars to stay afloat while struggling with an aging lineup and heavy fleet sales.Mitsubishi is betting on its “Momentum 2030” plan, including a new electric crossover this fall and several electrified models through 2030.One frustrated dealer summed it up bluntly: “Eventually Mitsubishi may get there with the new product, but it’s going to have to commit more to the U.S. if it wants to do well here.” As regulators tighten the screws on vehicle pricing transparency, vendors are racing to help dealers stay compliant. S&P Global Mobility and TrueCar both rolled out new tools designed to simplify fee disclosures, standardize pricing, and avoid FTC headaches before they become lawsuits.S&P Global Mobility launched “FeeSync,” a free industrywide tool that lets dealers update fees across vendors and marketplaces from one central hub.The push comes as the FTC continues sending warning letters to nearly 100 dealer groups over pricing and advertising practices.TrueCar updated its platform to display all-in pricing upfront, including dealer fees and add-ons, with expandable disclosures for shoppers.TrueCar CEO Scott Painter said the platform’s goal is “a transactional price that is good for both the dealer and the car buyer upfront, without negotiation.” Pizza Hut is leaning hard into retro vibes, remodeling stores to look like peak-1990s dine-in restaurants complete with Pac-Man, stained-glass lamps, and those iconic red cups. Turns out millennials will absolutely drive three hours for a little childhood comfort food.Since 2019, Pizza Hut has converted 144 locations into “Pizza Hut Classics” with throwback décor and dine-in experiences.Some remodeled stores are now top performers, with customers traveling long distances just to relive the experience.The nostalgia push comes as Pizza Hut closes underperforming locations while rival Domino’s continues expanding aggressively.Pizza Hut is also reviving its legendary “BOOK IT!” reading program, rewarding kids with pizza for summer reading goals.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

  7. MAY 19

    Tesla Price Bump, Sub-Prime Loans On the Rise, Auto Advertising Down

    Shoot us a Text. Episode #1348: Today we cover Tesla raising Model Y prices for the first time in years, lenders diving deeper into subprime auto financing, and why automotive advertising is quietly losing market share. Show Notes with links: Tesla just bumped prices on several higher-trim Model Y variants for the first time in two years, signaling confidence that EV demand may be heating back up. Meanwhile, Wall Street is still trying to decide if the stock is charging ahead or stuck in traffic.Tesla raised prices by $1,000 on the Model Y Premium RWD and AWD trims, while the Performance trim climbed by $500.Entry-level Model Y versions remain unchanged, suggesting Tesla is protecting affordability while testing premium demand elasticity.Analysts point to rising gas prices and battery material costs as possible drivers behind the move.Despite the pricing confidence, TSLA stock slid over 4% Friday and dipped again Monday as investors weigh slowing momentum and new technical buy points. Auto lenders are diving deeper into subprime financing as affordability pressures push buyers back into the market and lenders get more aggressive chasing deals. The result? More approvals, higher payments, and longer loan terms.Subprime and deep subprime borrowers made up 15.4% of all auto loans and leases in Q4, the highest share since 2021.Average interest rates are eye-popping: 13.2% for subprime new-car loans and nearly 22% for deep subprime used-car loans.Dealers say lenders are “digging a little deeper” rather than dramatically lowering standards, helped by better data and digital document verification.Experian’s Melinda Zabritski summed it up saying, “As affordability remains top of mind, both lenders and consumers are adapting.” For decades, automotive advertising practically was the ad industry. But now, shrinking OEM budgets, EV uncertainty, and Tesla-style marketing strategies are changing the game and auto’s share of ad spend is slipping below a historic benchmark.Automotive advertising is projected to fall below 10% of total ad category spend for the first time ever tracked by Guideline.The category shrank roughly 7% in 2025, with spending pressure continuing into 2026.Analysts point to weaker EV momentum and automakers scaling back electric initiatives as major contributors.Newer brands are ditching traditional “big splash” campaigns in favor of leaner marketing approaches, following Tesla’s no-advertising playbook.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/

    9 min

  8. MAY 18

    AI Trust Gap, Hyundai’s Weak Spot, Tariff Refunds To Consumers

    Shoot us a Text. Episode #1343: Today we discuss dealers trusting people more than AI when it comes to lead follow-up, Hyundai’s big push to repair struggling service satisfaction, and a new lawsuit claiming Toyota buyers deserve part of a potential $9 billion tariff refund. Show Notes with links: Dealers still believe the human element wins the sale. A new Urban Science survey shows strong confidence in showroom sales teams, but much less trust in AI lead follow-up. The takeaway? Dealers want better process visibility before turning things over to automation.72% of dealers said they’re highly confident in their sales teams’ ability to convert leads, while 75% say they respond in under five minutes.Dealers still see weak spots: 38% cited lack of real-time insight into lost sales and 34% pointed to inconsistent follow-up.Consumers expect speed. Urban Science found 82% say follow-up matters, and 72% expect a response within 24 hours.AI still has a trust gap. Only 14% of dealers trust AI tools for lead follow-up compared to 57% who trust in-house sales teams.Urban Science’s Eric Demont said dealers need “a clear understanding” of wins, losses and defection patterns to improve conversion rates. Hyundai is trying to fix one of its biggest weak spots: service satisfaction. After years of complaints about delays, parts shortages and overloaded service departments, the automaker is rolling out mobile service vans, technician recruiting and dealership efficiency programs to win customers back.Hyundai says poor service capacity and years of engine replacement recalls overwhelmed dealerships and dragged down customer satisfaction scores.The brand has added 4,000+ service bays nationwide, while dealers are extending hours and adding Saturday service to handle demand.Hyundai plans to launch a 150-van mobile service fleet by year’s end to handle oil changes, brake jobs, software updates and other light repairs at homes or workplaces.The company is also recruiting more technicians, improving diagnostic training and coaching 185 dealerships on service efficiency and workflow gaps.Hyundai’s Michel Poirier said the goal is climbing back up JD Power rankings by 2028, adding: “Service is the most important part of the business.” A California Toyota buyer is taking aim at tariff pricing, claiming customers helped foot the bill for billions in import costs — and should get paid back if Toyota ever receives tariff refunds. A proposed class action lawsuit claims Toyota passed tariff costs onto buyers through higher vehicle and parts prices.The filing covers buyers and lessees of qualifying Toyota vehicles purchased between February 2025 and February 2026.Toyota reportedly absorbed about $9 billion in tariff-related costs tied to Japan, Canada and Mexico operations.Toyota recently raised prices on several models, including a $1,600 increase for the 2026 Sequoia, while calling the changes part of a “regular review of the prices.” 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
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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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