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. 16H AGO

    Group 1 Cuts Jobs, Ford Retooling To Compete With China, Harley Goes Affordable

    Shoot us a Text. Episode #1334: Dealers face workforce cuts as Group 1 trims costs, Ford’s secret EV project reveals how it plans to hit a $30K price point, and Harley-Davidson shifts back to entry-level bikes to drive volume, boost dealer profits, and reconnect with new riders. Group 1 Automotive has reduced its U.S. workforce by nearly 700 employees in April as leadership responded to a slower retail market and leaned further into technology to improve efficiency. Executives said the company cut about 5% of its U.S. workforce across dealerships and corporate roles to reduce costs.CFO Daniel McHenry said the cuts will save about $35 million annually, while vendor reductions add another $15 million in savings.CEO Daryl Kenningham said leadership reviewed “costs by store and market and business unit” and assigned new staffing targets accordingly.Leadership said the company protected service technicians and retained roles tied to training, development, and retention initiatives.Kenningham: “We feel like we have enough technology overlay that’s going to compensate for those lower productivity salespeople that we might have separated with,”We’ve talked about Ford’s low-cost EV project before, but now we’re getting a clearer look at how they plan to actually make money on a $30K electric truck. A Wall Street Journal article is detailing how the Ford program led by Silicon valley engineers is focused on stripping costs out of EVs.Ford insiders said the “techie outsiders” and legacy engineers initially struggled with “misunderstandings and distrust,” as fast-moving, risk-tolerant Silicon Valley approaches clashed with Ford’s more cautious, process-heavy culture.The development team cut parts, simplified wiring, and redesigned assembly using large castings and modular builds to reduce labor and complexity.Engineering lead Alan Clarke said, “We can look at it as, ‘The Chinese are really far ahead and it’s really scary that they’re coming.’ But, get off your ass and do something about it.” Harley-Davidson is pivoting hard toward affordability, bringing back the Sportster and launching lower-cost models as it tries to reverse years of declining sales and reconnect with a broader rider base. Harley leadership is returning to entry-level bikes after years focused on high-priced touring models that boosted margins but hurt unit sales.CEO Artie Starrs said the revived Sportster will start around $10,000, while a new Sprint model is expected near $6,000 to drive volume.The strategy aims to grow dealer profitability, with plans to double profits this year and quadruple them by 2029.Harley is also pushing more showroom traffic by requiring online merchandise purchases to be picked up at dealerships.CEO Artie Starrs said, “Our riders want it, which means our dealers want it, which is why we’re so passionatJoin 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

  2. 1D AGO

    Top 100 Used Dealers, Ford Discounts Go Wide, Audible Listening IRL

    Shoot us a Text. Episode #1333: Used-car consolidation accelerates as the biggest dealer groups tighten their grip, Ford opens up employee pricing to drive volume, and Audible tests a bold physical retail concept. It’s all about scale, strategy, and finding new ways to connect with today’s customer. Show Notes with links: Automotive News dropped its 2026 Top 100 used dealer group ranking, and the big headline is scale: the top 100 retailed 3.45 million used vehicles in 2025, up 1.4%, while the top 10 alone moved 52% of the total. Big stores got bigger, and the used-car chessboard got sharper. Lithia stayed on top with 435,070 used units, followed by AutoNation at 269,558, Group 1 at 234,906, Penske at 226,301, and Sonic at 171,838.Group 1 had a monster year, jumping from 209,687 to 234,906 used units, while Hudson Automotive cracked the top 10 with 72,044 units after a big gain from 2024.The list also shows plenty of movement below the giants, with new names including DriveChoice, Price Family Dealerships, Sam Pack, Bob Moore, Young Automotive, Bayway, ZT, Hiley, and American Motors Group.Takeaway for dealers: used-car scale is still a weapon, but so is execution. The groups climbing fastest are proving inventory discipline, acquisition strategy, and turn speed still matter more than just rooftop count. Ford is opening up employee pricing to the public on most 2025 and 2026 models, leaning into affordability concerns while trying to keep volume strong. The move comes as competition tightens and buyers remain cautious on big purchases.Ford extends employee pricing broadly to attract cost-conscious buyers sitting on the sidelines.The strategy aims to boost showroom traffic and maintain plant utilization in a competitive market.Q1 2026 results show solid footing with $43B revenue and $2.5B net income, helped by a $1.3B tariff refund.The big question: will increased volume offset thinner margins or create a discounting habit? Audible is stepping into the physical world with a limited-time NYC pop-up designed to bring audio storytelling to life. The 6,000-square-foot “Story House” blends retail, community, and immersive tech into a new kind of media experience.Audible opened a three-story listening lounge in Manhattan, running through May 31.Features include Dolby Atmos rooms, live events, and interactive “story tiles” for browsing content.The space blends digital and physical, letting users sample, stream, and engage with content on-site.Community-driven programming includes creator panels, fan events, and themed experiences.James Finn, Audible's global head of brand and content marketing:“What does a bookstore look like without any books? A place where audio storytelling comes alive.”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

  3. 3D AGO

    How Vehicles For Change Has Supported Reliable Transportation for Over 28,000 People

    Shoot us a Text. On today's show, Chris joins Paul and Kyle to talk about our ASOTU CON charity partner Vehicles for Change and the amazing impact that they have because of partnering with dealers. 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

  4. 4D AGO

    Bill Introduced To Ban Chinese Cars, Rivian Trims GA Factory, AV Traffic Tickets

    Shoot us a Text. Episode #1331: Lawmakers push to block Chinese autos amid affordability and security concerns, Rivian reshapes its Georgia plant strategy while betting big on the R2, and California moves to hold autonomous vehicles accountable with new enforcement rules. Show Notes with links: A bipartisan push led by Sen. Bernie Moreno (R-Ohio) and Sen. Elissa Slotkin (D-Mich.) aims to shut the door on Chinese vehicles and parts entering the U.S., citing national security concerns as affordability pressures rise for consumers.The proposed bill would ban Chinese-made vehicles, parts, and software from entering the U.S. market.Moreno and Slotkin want to expand existing rules and “seal” the entire automotive supply chain from foreign adversaries.The effort comes ahead of a planned Trump-Xi meeting and growing political pressure to act.Support from UAW and GM highlights industry concern over competition and data security risks.“People are really, really pressed right now… people are looking for cheaper cars… but as leaders, we have a responsibility to say, ‘Look, this is a driving surveillance package, it’s like TikTok on wheels,”” Slotkin said. Rivian is trimming its Georgia factory ambitions but accelerating its timeline. A smaller federal loan means reduced capacity, but earlier access to funds could help fast-track production of its highly anticipated, more affordable R2 lineup.Rivian cut planned capacity from 400,000 to 300,000 vehicles annually as its federal loan shrinks to $4.5B.The upside: funds will be available sooner, allowing a single-phase build instead of two stages.The plant, opening in 2028, will produce the R2 and future models aimed at broader affordability.Rivian’s Q1 showed progress with losses narrowing 23% and deliveries up 20% year-over-year.“R2 provides the opportunity to expand the Rivian brand to millions of drivers,” said CEO RJ Scaringe. California is putting autonomous vehicles on notice, literally. Starting July 1, AV companies can be cited for traffic violations committed by their driverless cars, marking a major shift in how regulators handle robotaxi behavior and public safety.Law enforcement can now issue “notices of AV noncompliance” for violations like running red lights or ignoring school buses.The move follows years of viral mishaps and ongoing investigations into systems like Tesla’s Full Self-Driving.AV companies must respond to first responders within 30 seconds and comply with emergency geofencing to avoid active scenes.New rules also open the door for testing heavy-duty autonomous trucks and set training requirements for remote operators.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

  5. 5D AGO

    Carvana’s 6Q of Growth, OEMs To Get Billions In Tariff Refunds, Retail Media Ad Accountability

    Shoot us a Text. Episode #1330: Carvana keeps its growth streak alive with record sales and profits, automakers book billions in tariff refunds (on paper), and AI is forcing retail media to evolve from impressions to real, measurable outcomes. Carvana is back in the fast lane, posting another record-breaking quarter with massive sales growth and strong profits. The online retailer continues to scale, signaling confidence in its long-term used car dominance.Carvana sold 187,393 vehicles in Q1 2026, up 40% year-over-year and marking its sixth straight quarter of 40%+ growth.Revenue jumped to $6.43B with net income hitting $405M, beating analyst expectations across the board.The company is expanding capacity, integrating ADESA sites, and building toward 1.5M annual unit capability—with room to reach 3M.Carvana expects continued growth in Q2, assuming stable market conditions and momentum holds.“We are continuing to hit records… and scale a business of Carvana’s complexity at high speed,” said CEO Ernie Garcia. Automakers are seeing a short-term earnings lift from expected U.S. tariff refunds—but the cash isn’t in hand yet, and the optics could get tricky. As billions in reimbursements loom, companies are balancing accounting wins with political uncertainty.Ford, GM, Mercedes, and Stellantis booked roughly $2.3B in expected tariff refunds, boosting Q1 profits on paper.Ford alone expects $1.3B back, GM about $500M, tied to overturned tariffs under IEEPA.Automakers stress the cash hasn’t arrived yet—so it’s not counted as free cash flow.The refund process could take months, adding uncertainty to already complex financial planning.The overturned IEEPA tariffs are just one piece—automakers still face ongoing import taxes on steel, aluminum, and vehicles and parts from Mexico, Canada, and beyond. As AI agents begin browsing, buying, and acting on behalf of users, Cloudflare says the internet isn’t fully prepared. A new push for “agent readiness” could reshape how businesses structure sites, data, and digital experiences.Cloudflare warns most websites are built for humans—not AI agents that search, decide, and transact automatically.“Agent readiness” means structuring sites so AI can easily access, interpret, and act on information.This includes better APIs, structured data, and permissions for what agents can or can’t do.Businesses may need to rethink UX entirely—designing for machines as much as for people.“The web is being rebuilt for agents,” Cloudflare suggests, signaling a major shift in how digital commerce will operate.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

    Chinese Vehicles At The Border As Lawmakers Push a Ban, What Makes A Company Trustworthy

    Shoot us a Text. Episode #1329: Lawmakers push to block Chinese vehicles as they sit just miles from the U.S. border. Meanwhile, those same brands are gaining attention from American drivers. Plus, a new “most trusted companies” list shows how perception is shaping retail and automotive players alike. Show Notes with links: A growing group of U.S. lawmakers is urging the Trump administration to keep Chinese automakers out of the American market entirely, even as consumer interest rises and some leaders float U.S.-based production.More than 70 House Democrats are pushing to maintain a full ban on Chinese vehicles entering the U.S. market.The current restrictions stem from 2025 rules citing national security concerns, especially around data collection from connected vehicles.Despite high tariffs and bans, consumer curiosity about Chinese EVs is increasing, especially with the Beijing Auto Show currently happeningThe debate gets complicated as Trump made comments in January welcoming Chinese automakers building plants and jobs on U.S. soil.“We must not cede the American auto industry to a strategic competitor intent on global dominance,” lawmakers said. Chinese automakers may be locked out of the U.S., but just five miles from the Texas border, they’re gaining traction with low prices and high-tech features. Chinese brands like BYD, Geely, and Great Wall are thriving in Mexico with EVs, hybrids, and gas vehicles priced well below U.S. offerings.Dealerships near El Paso are attracting attention from American shoppers, with some buyers and drivers already bringing vehicles into the U.S. under legal exceptions.One driver regularly commutes into Texas in a Chinese plug-in hybrid.Executives warn the pricing pressure is real, with some saying competing at Chinese price points would mean losing money.“If they were allowed to be sold in the United States…they would destroy the American car market,” said a Geely salesman, A new ranking of America’s most trustworthy companies is out, based on a survey of 25,000 consumers, with retail brands dominating the list and sparking debate about how trust is measured and which companies truly earn it.Newsweek’s 2026 list ranks retailers like Chewy, Costco, Amazon, and Home Depot among the most trusted companies in the U.S.The rankings are based on consumer perceptions of trust across industries, with retail heavily represented at the top.The report emphasizes that trust is increasingly tied to transparency, reliability, and handling of customer data.Some critics argue the list favors large corporations and question whether trust can truly be measured through surveys.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

  7. APR 28

    Greenfield on The Fight For Legacy OEMs and Cheap Chinese EVs

    Shoot us a Text. Episode #1328: We’re joined by guest host Steve Greenfield to talk about Ford's CEO sounding the alarm on a make-or-break moment for legacy automakers, while China’s ultra-affordable EVs show just how intense—and fast—the global competition has become. Show Notes with links: See Steve's keynote from last year's ASOTU CON here Legacy automakers are staring down a perfect storm as EVs, software, and Chinese competition reshape the industry. Ford CEO Jim Farley says this could be a defining survival moment—one that feels a lot like the 1920s all over again.Farley calls today a “fitness test” as EVs, software-defined vehicles, and emissions targets collide all at once.Chinese automakers have leapfrogged legacy OEMs in EV tech, speed to market, and cost—sometimes building cars twice as fast.Ford admits early EV efforts missed the mark on cost and design, losing money despite strong consumer interest.Dealers remain a strategic advantage as global competitors lack distribution networks built over decades.“If we don’t put our chips on the right number… Ford could maybe not exist.” — Jim Farley At the Beijing Auto Show, one thing is clear: China’s EV market isn’t just competitive—it’s brutally cheap. With dozens of models under $25K, the pricing gap versus the U.S. is becoming impossible to ignore.The average new car in the U.S. tops $51K, while China offers 200+ EVs under $25K—and some under $12K.Models like the Wuling MiniEV start around $6,500, prioritizing affordability over size and speed.BYD is dominating the segment, selling hundreds of thousands of sub-$12K EVs with surprising tech and range.Even entry-level Chinese EVs now include features like lidar, fast charging, and 300+ mile range (China standard).“When you get in [these vehicles], you don't feel like you are in a small car.” — Analyst Felipe MuñozJoin 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/

    21 min

  8. APR 27

    Quick Lubes Beating Dealers, EVs Hold Their Range, US Consumers Want Chinese EVs

    Shoot us a Text. Episode #1327: Dealers lose service share to quick lubes, EVs prove stronger range retention, and Chinese vehicles gain global credibility at the Beijing Auto Show. Dealership service lanes are losing ground as quick lube shops quietly gain share in 2025. New data shows fewer transactions and shrinking revenue for dealers, with pricing strategy emerging as the key battleground in keeping service customers loyal.The study analyzes credit and debit transactions across all service channels including dealerships, independents, quick lubes, and tire chains.Overall service transaction dollars fell 8.3 percent, but dealers declined faster at 11 percent.Dealership service transactions dropped 13 percent year over year, the steepest decline among all segments tracked.Quick lube shops gained market share while raising prices more slowly than dealerships, attracting cost-conscious customers.Even with free OEM-paid maintenance, dealers are struggling to retain customers in the critical first two years of ownership.“The quick lubes are what everybody should be worried about,” said Ducker Carlisle’s Nate Chenenko. Electric vehicle range isn’t fading the way many buyers fear. New data from over a billion miles of driving shows modern EVs are holding onto their range far better than expected, thanks to both improving battery tech and smarter software.Recurrent data shows EVs retain about 97% of range after three years and 95% after five years of ownership.The study is based on real-world driving data, factoring in climate, usage, and battery age, not just EPA estimates.About 68% of 2023 model-year EVs are still exceeding their original EPA range today.Automakers are offsetting degradation with OTA updates and built-in battery buffers that unlock over time. At the Beijing Auto Show, American YouTuber Ethan Robertson of Wheelsboy is giving global audiences a firsthand look at Chinese EVs, helping shift perception from “cheap copycats” to serious innovation leaders.Robertson led international visitors through the Beijing Auto Show, showcasing China’s latest EVs and tech-forward designs.Perception has shifted dramatically, with Chinese brands now recognized for advances in batteries, software, and charging.Attendees highlighted futuristic interiors and features, calling the vehicles a “new generation” of driving experience.Competitive pricing remains a major disruptor, with fully loaded EVs around $30,000 undercutting U.S. options.“Our comment section is full of people saying, ‘I can’t believe the government won’t allow them to sell this car in my country,’” said Robertson.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/

    23 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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