Podcast
Automotive State of The Union
Hosted by More Than Cars Media Network · EN
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
113episodes
Episodes
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Polestar Ordered To Stop Selling, CarGurus Transparency, Cookout Costs Climb
2d ago00:11:24Tap to summarizeEpisode #1381: The U.S. tightens the screws on Chinese-connected vehicles by shutting Polestar out of the market, CarGurus raises the stakes on transparent pricing for dealers, and Americans are spending more than ever to fire up the grill this Fourth of July.Show Notes with links: The U.S. is drawing an even harder line on Chinese-connected vehicles. Polestar says it will be forced to stop selling new vehicles in America starting with the 2027 model year after the government denied its approval under the Connected Vehicles Rule. Despite being headquartered in Sweden, Polestar's majority ownership by China's Geely put it squarely in the government's crosshairs. The rule targets connected features like Bluetooth, Wi-Fi, cellular, and satellite communications over concerns they could collect sensitive data on American drivers. Volvo Cars, also owned by Geely, received U.S. authorization in May to keep selling connected vehicles, though regulators have not publicly detailed why Volvo was cleared while Polestar was denied. The decision accelerates Polestar's shift toward Europe, where 78% of its first-quarter sales occurred. Just 6% of deliveries came from the U.S. this year. Polestar dealer Matthew Haiken: “I’m really, really, really upset. This whole company was like a family to me. I made money with Polestar. I was looking forward to all the new product. I’m just heartbroken.” If your inventory pricing isn't transparent, it's about to become a lot less visible. CarGurus is requiring dealers to disclose fees in listed prices or risk losing deal ratings and search placement starting July 14. Beginning July 14, dealers must disclose applicable fees in their vehicle pricing or listings will receive a "No Rating" and be pushed lower in CarGurus search results. The move follows increased FTC scrutiny around deceptive pricing practices. CarGurus will calculate its Instant Market Value (IMV) and Deal Ratings using the vehicle's total advertised price, including disclosed fees. Dealers already sending all-in pricing must update their CarGurus settings to indicate fees are included, or they could still lose Deal Ratings. CEO Jason Trevisan said, "All-in pricing is the natural next step. We're proud to extend our industry leadership by making this the standard and creating a more upfront marketplace for consumers and dealers alike." Americans are ready to celebrate Independence Day, but they'll be paying a little more for the privilege. Cookout costs have reached a 10-year high, even as consumers plan to spend more than last year. Nearly 87% of Americans plan to celebrate the Fourth of July this year, with food spending expected to climb to $9.4 billion, up 5.6% from last year. According to the American Farm Bureau, the average cookout for 10 people now costs $73.82, the highest in the survey's 10-year history. Grilling favorites are getting pricier, with strawberries up 12.4%, hamburger buns up 7.7%, ground beef up 5.5%, and ice cream up 5.3%. There is one silver lining: potato salad is cheaper this year thanks to lower egg and potato prices, and the Northeast is the least expensive region for hosting a cookout.
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Zoox Reveals Next-Gen Robotaxi, Dealer Solves Auction Arbitration, Coffeehouse Coaches
3d ago00:10:51Tap to summarizeEpisode #1380: Today we're talking about Amazon's Zoox gearing up for robotaxi production, an Indiana dealer crowdsourcing wholesale transparency with a new arbitration platform, and why Starbucks is investing in frontline leadership instead of just adding more labor. Show Notes with links: Amazon-owned Zoox is moving from prototype to production, unveiling a redesigned robotaxi built for scale. The company says riders could start seeing the purpose-built autonomous vehicle in service later this year. Zoox plans to ramp production to 100 robotaxis per week at its Hayward, California facility, pending regulatory approval. Unlike retrofitted vehicles, the Zoox robotaxi was designed from the ground up for autonomous ride-hailing, with no steering wheel or driver's seat. The updated model keeps its signature carriage-style cabin while adding a brighter interior, improved seating, and a more passenger-friendly layout. Exterior refinements make the vehicle easier to identify and interact with, including clearer front/rear styling and upgraded door speakers and microphones. CEO Aicha Evans: "This is our year of growth." Every dealer knows buying at auction comes with a few surprises. One Indiana dealer is turning that frustration into software, launching a platform designed to speed up arbitration, crowdsource vehicle histories, and warn dealers about fraud. Best Auto Sales VP Travis Baldwin created Dealer Defender after managing arbitration across six dealerships sourcing 70% of their inventory from auctions. The platform centralizes arbitration, provides real-time updates, and creates a dealer-powered vehicle history showing prior arbitration, repairs, and seller responses before the next dealer buys the vehicle. Dealers can also share alerts about fake IDs, stolen identities, and other wholesale fraud to help protect the industry. Baldwin: "We believe that transparency can exist in a wholesale environment." Starbucks is adding a new layer of in-store leadership, hiring thousands of "coffeehouse coaches" as it continues its turnaround strategy focused on better customer experiences and stronger frontline teams. Starbucks is hiring 300 coffeehouse coaches this month, with thousands more planned across its 10,000 U.S. company-operated stores. The new full-time role keeps experienced leaders on the floor throughout the day, giving baristas more support while freeing store managers to focus on coaching and operations. Pilot stores reported better execution, more consistent customer experiences, and improved same-store performance. More than 90% of coach positions were filled through internal promotions. The investment is part of Starbucks' broader turnaround, alongside store remodels, smarter mobile ordering, and increased staffing—all contributing to 7.1% same-store sales growth in early 2026. Coffeehouse coach Tim L. says, "Creating opportunities for ongoing support and development has helped strengthen consistency across the team while also building trust and engagement."
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Most American-Made Cars, Slate Debuts Under $25K, CA To Halt Car Sales?
4d ago00:11:08Tap to summarizeEpisode #1379: Tesla hangs onto its American-made crown while EVs lose ground to hybrids. Slate Auto doubles down on its affordable truck gamble. And California's new domestic violence protection rules could unexpectedly put the brakes on vehicle sales across the state's massive auto market.Show Notes with links: Tesla has once again claimed the top spot in Cars.com's American-Made Index, marking six straight years at the top. But digging into the list reveals that American-made doesn’t necessarily mean American nameplates. The 2026 Cars.com American-Made Index was led by Tesla's Model 3 and Model Y, followed by the Jeep Gladiator, Jeep Grand Cherokee, Honda Ridgeline, Honda Odyssey, Lexus TX, Honda Accord, Acura MDX, and Honda Passport Toyota and Honda had the most total models on the overall index, with "foreign" brands making up 65% of vehicles on the list The first Ford vehicle is the Lincoln Navigator at 12, and the first GM vehicle is the GMC Canyon at 25. The average Top 10 vehicle contains 70% domestic parts content, and Cars.com says supply chains appear to be reshoring production as tariff pressures and manufacturing priorities shift. As automakers continue walking away from entry-level vehicles, Slate Auto's leadership is making the case that a sub-$25,000 EV is profitable. The startup now says its biggest challenge may be convincing buyers, suppliers, and the industry that simplicity can still sell. CEO Peter Faricy says the base truck will start at $24,950 and generate positive gross margins, directly challenging the industry's argument that affordable vehicles can't be built profitably in America. The truck enters a segment that has largely disappeared from the U.S. market. While the Ford Maverick has revived interest in compact pickups, Slate's truck is even smaller, starts about $5,000 cheaper, and offers a longer bed than the Maverick. The company says suppliers have been charging a "startup tax" because of the risks associated with working with a new automaker, creating an additional hurdle as it ramps toward production. "If we can execute and launch on time and prove this, I think we have a chance to build an enthusiastic customer base," said CEO Peter Faricy. Automakers are warning that a California law designed to protect domestic violence survivors could create an unexpected consequence: a temporary halt to new and used vehicle sales if lawmakers don't approve a deadline extension before July 1. The law requires automakers to quickly revoke remote vehicle access when presented with a restraining order and eventually allow drivers to disable location tracking directly from inside the vehicle. The legislation was inspired in part by reports of connected-car technology being used to track and harass domestic violence survivors. Automakers say they've already implemented some of the processes, but need more time to build and validate the required in-vehicle technology. The Alliance for Automotive Innovation warned that noncompliance could force companies to suspend vehicle sales in California, which accounts for roughly 10% of all U.S. auto sales. A bill moving through California's legislature would extend implementation deadlines, but automakers say it must be signed before July 1 to avoid disruption.
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AI Takes Car Chips, Carvana and Jimmie Johnson Invest In Techs, AI Product Search Increase
5d ago00:12:14Tap to summarizeEpisode #1378: How the AI boom is creating a memory chip shortage that’s driving up costs for automakers, Carvana and Jimmie Johnson investing in future technicians and engineers, and why consumers are using AI search more than ever, even as their trust in it starts to fade.Show Notes with links: As automakers push toward software-defined vehicles, they're colliding with a new competitor: Big Tech. The same memory chips powering AI are now essential in modern vehicles, and tech companies are buying them at almost any price. DRAM memory prices jumped roughly 450% between September 2025 and January 2026 as AI demand exploded. These chips are critical for ADAS, over-the-air updates, infotainment, and autonomous driving features consumers increasingly expect. The cost impact is real: Honda cited a $295 million hit, GM added $500 million to inflation guidance, and Ford pointed to DRAM as part of $1 billion in higher commodity costs. With major suppliers prioritizing data centers and limited new capacity coming online, analysts expect shortages and elevated prices to continue through 2027. “It is a structural change. Buyers who were previously maybe 10 percent, 15 percent of the market are now half of the market.”” said Kearney partner Kushal Fernandes. As the industry continues searching for future technicians and engineers, Carvana and NASCAR legend Jimmie Johnson are putting resources directly into school programs designed to build that talent pipeline. Carvana and the Jimmie Johnson Foundation launched Driving Brighter Futures, a grant program supporting K-12 automotive and engineering career-tech education programs. Public schools can apply for funding to purchase the resources they need most, including tools, equipment, and training vehicles. The program aims to strengthen the workforce pipeline by helping students explore careers in automotive technology and engineering earlier. Nominations are open through August 28, with schools across the U.S. eligible to participate. “The industry needs these students, and these students deserve the opportunity,” said Jimmie Johnson. AI is becoming a bigger part of how consumers discover products and brands, but confidence in those tools appears to be slipping. The technology may be winning adoption, but it hasn’t won trust. Seven in 10 consumers say their use of AI for product search increased over the past year, and only 4% say they’ve never used AI search tools. Despite growing usage, just 54% say AI is more helpful than traditional search, down sharply from 82% a year ago. Trust is becoming a challenge: 40% say heavy AI use by a favorite brand would decrease their trust, double last year's result, and roughly 9 in 10 respondents want AI-generated videos, images, audio, and written content clearly labeled. When it comes to product recommendations, consumers still trust Google first (39%), with Reddit (15%) narrowly beating AI tools (14%) for second place.
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EV Battery Scores, Shady Lease Buyouts, AI-Generated UGC
6d ago00:14:14Tap to summarizeEpisode #1377: How much should dealers trust an EV battery score? Why is Kia paying lessees up to $9,900 to keep their EVs? And are AI-generated customer testimonials the next evolution of marketing—or the end of authenticity? Today’s show is brought to you by our friends at Widewail. who can show you where your dealership stands on issues the FTC is currently scrutinizing. Watch their webinar on the topic at widewail.com/FTC. Show Notes with links: As battery health becomes a bigger factor in used EV valuations, a new Lyteflo study is raising questions about how some battery scores are generated. The study found model-based estimates consistently rated batteries healthier than direct measurements taken from the vehicles themselves. Lyteflo compared battery scores from 150 EVs and found model-based estimates averaged 6.2 points higher than direct measurements from vehicle diagnostic data. The gap grew for 2021 and older models, with model-based scores overstated battery health by an average of 9.3 points. In 92% of vehicles studied, the model-based score came in higher than the direct measurement, with the largest difference reaching 18 points on a 2022 Tesla Model Y. Battery health is increasingly appearing on vehicle detail pages and being used to support appraisal, pricing, merchandising, and customer-facing battery condition claims. Kia is offering some EV lessees up to $9,900 to buy their leased vehicle instead of turning it in. The program applies to select EV6, EV9, and Niro EV leases maturing this month and has some dealers asking what it says about today's EV residual values. Eligible Kia EV lessees can receive between $2,800 and $9,900 toward purchasing their leased vehicle, with participating dealers receiving $300 for completing the transaction. Customers are identified directly by Kia Finance America and routed back to their originating dealership to process the buyout. Every customer who buys out their lease is one less off-lease EV returning to auction, where the market would publicly establish its current value. Some dealers see the program as a way to reduce exposure to weak residual values while others view it as a missed opportunity to convert a lease customer into a new-vehicle sale. As dealer Scott Falcone put it: "The fewer transactions that occur that indicate the residual was a train wreck, probably the better off it is for an OEM." Brands are increasingly using AI-generated influencers and UGC-style content in marketing campaigns, often without disclosing that the people featured aren't real. The Guardian found examples of brands using AI-generated people in videos and posts designed to resemble authentic customer reviews and recommendations. Consumer group Which? says 70% of people couldn't correctly identify all the real and fake videos shown in recent testing. The rise of AI-generated UGC follows a marketing shift that began several years ago, when brands started paying creators to make content that looked like everyday customer experiences rather than traditional advertisements. Supporters argue the value of UGC has always been its relatability, not necessarily whether the person on screen was a traditional influencer or content creator. Clarissa Mansbridge, former celebrity manager and AI creator: “I’m going to say about 40% to 60% of the content out there from some of the big brands is actually being made through AI, but a lot of the creators are under NDA.”
Transcribe →This Is The Best Dealership Community Involvement Page We've Ever Seen
1w ago00:10:57Tap to summarizeEpisode 1376: Today, Chris and Nathan join Paul to talk about the Luther Automotive Group has set up its community involvement page and all the amazing things they're doing.
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Shawn Fain’s Re-Election Campaign, The Pricing Ownership Problem, Valar Goes Critical
1w ago00:15:24Tap to summarizeEpisode #1375: Shawn Fain kicks off his reelection campaign as UAW leadership tensions heat up, industry leaders debate who really owns pricing in today's complex retail ecosystem, and startup Valar Atomics reaches a major nuclear milestone.Today’s show is brought to you by our friends at Widewail. who can show you where your dealership stands on issues the FTC is currently scrutinizing. Watch their webinar on the topic at widewail.com/FTC. As the UAW heads toward another leadership election, Shawn Fain is no longer the outsider, he’s the establishment. While touting major labor victories and an ambitious future agenda, Fain is also facing criticism from reformers who say the union still has unfinished business. Speaking at the UAW Constitutional Convention in Detroit, Fain laid out his vision, calling AI a threat to workers, promising a renewed push to restore pensions, and arguing the UAW should expand its influence across multiple industries. The UAW president is running with a revamped leadership slate after breaking with several allies who helped bring him to power in 2023, including current Secretary-Treasurer Margaret Mock. Five candidates are challenging Fain this fall, with opponents arguing that federal watchdog reports raise concerns about transparency, internal governance, and reform efforts. Scott Houldieson, Ford Chicago Assembly Plant worker: “Shawn’s the best president I’ve ever experienced in the UAW. You have to go back decades to find one who’s been as important to the labor movement at large.” Who owns pricing at a dealership? That question emerged as one of the biggest themes at the CBT News Fair Pricing & Compliance Summit, where speakers all pointed to shifting prices as one of retail automotive's most pressing operational challenges. John Fitzpatrick of Force Marketing described the growing complexity of managing pricing across dealer websites, OEM programs, third-party marketplaces, agencies, and internal dealership teams. Aaron Baldwin of automotiveMastermind discussed the challenge of keeping technology systems aligned as pricing, incentives, and compliance requirements continue to evolve. Laura Perrotta of the New Jersey Coalition of Automotive Retailers emphasized the need for stronger coordination between dealers, manufacturers, vendors, and listing platforms to ensure customers see accurate information. While the panelists approached the issue from different perspectives, the consensus was that dealers need a clearly defined process for where pricing originates, who approves changes, and how those updates are verified across every customer-facing channel. The U.S. nuclear industry just hit a milestone that hasn’t happened in decades. Startup Valar Atomics successfully brought its Ward250 small modular reactor to criticality in Utah, marking a major step toward commercial next-generation nuclear power and a potential new chapter for American energy. The reactor was assembled in Utah just months after being airlifted by three U.S. Air Force C-17 cargo planes, highlighting the company's rapid development pace. Valar is one of 10 companies selected for the Department of Energy's advanced reactor pilot program and only the second to complete this phase of testing. The company now moves closer to commercial licensing, with hopes of joining a very short list of operating small modular reactors worldwide. Founder Isaiah Taylor says the next goal is producing electricity from the reactor before July 4, less than three years after launching the company. “When I started this company less than three years ago, our guiding principle was that metal beats paper.” — Isaiah Taylor, Founder & CEO, Valar Atomics.
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Fed To Increase Rates?, CPO Sales Climb, Trusting Lunchables Over AI
1w ago00:10:29Tap to summarizeEpisode #1374: The Fed pumps the brakes on rate cuts, but dealers say demand is still rolling. We also look at why affordable used inventory remains the hottest commodity on the lot, and why consumers are trusting Capri-Sun more than AI. Show Notes with links: The Fed may have swapped expected rate cuts for a possible rate hike, but dealers aren’t exactly hitting the panic button. Industry leaders say affordability remains a challenge, yet many retailers believe today’s market is being driven more by necessity and consumer adaptation than financing costs. The Federal Reserve held rates steady at 3.5–3.75% and now projects a quarter-point increase later in 2026 instead of the rate cuts many expected. Dealers say rate concerns are becoming more manageable as customers adjust to the new normal. Just 36% of dealers now identify interest rates as a major issue, down significantly from 60% in 2023. Analysts note that years of delayed vehicle purchases have created a backlog of demand, meaning many consumers simply can’t put off replacing aging vehicles much longer. Edmunds’ Ivan Drury called the prospect of higher rates “more of just like another psychological downer” than a true demand killer. “It’s nothing we haven’t seen before, so I know we’ll be able to get through it,” said Nicole Lacy of RC Lacy Ford-Subaru in New York. “It’s not going to drive ... big [sales] numbers either way,” said Tom Castriota, dealer principal at Castriota Chevrolet in Florida. Certified pre-owned vehicles sales saw a healthy monthly bump in May, but year-over-year trends remain soft as higher prices and limited affordable inventory continue to challenge buyers. CPO sales reached an estimated 228,521 units in May, up 6.1% from April, and accounting for 15.7% of all used retail sales. Used inventory climbed to 2.12 million vehicles, up 4% month-over-month, but remains tight by historical standards despite modest gains. Vehicles priced under $15,000 carried just 33 days' supply in May, 12 days below the overall market average of 45 days. As Cox Automotive's Scott Vanner noted: "Price-conscious buyers continue to face limited options in the used-vehicle market, with inventory in the lowest-priced segments remaining scarce." As AI races ahead at breakneck speed, consumers appear to be hitting the brakes on trust. A new survey shows confidence in major AI brands is slipping, while some of the biggest gains are going to familiar, low-tech brands that have been sitting in our pantries and toy boxes for decades. Morning Consult found that seven of the ten largest AI brands saw declines in consumer trust over the past year, despite AI becoming more integrated into daily life. Google’s Gemini was the exception, improving its trust score and finishing as the highest-rated AI brand in the study. Meanwhile, some of the biggest trust gains went to nostalgic brands like Capri-Sun, Lunchables, Hot Wheels, and Mr. Pibb, suggesting consumers are gravitating toward familiarity in a rapidly changing world. “In 2026, a significant portion of consumers are in anchoring mode: seeking brands they can count on when other parts of their environment feel unstable,” said the report. Today’s show is brought to you by our friends at Widewail. who can show you where your dealership stands on issues the FTC is currently scrutinizing. Join their webinar on the topic June 18th (tomorrow) at widewail.com/FTC.
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Carvana’s Test Drive Playground, United Airline Travel Woes
2w ago00:17:33Tap to summarizeEpisode #1373: Today we explore Carvana’s attempt to make car shopping fun again, dig into a used-car market where affordable inventory remains frustratingly scarce, and follow a World Cup broadcast team that discovered the fastest route to New Jersey wasn’t actually United Airlines. Today’s show is brought to you by our friends at Widewail. who can show you where your dealership stands on issues the FTC is currently scrutinizing. Join their webinar on the topic June 18th (tomorrow) at widewail.com/FTC. Show Notes with links: Carvana is testing a new dealership concept in Dallas that focuses less on speeding up the transaction and more on making vehicle shopping genuinely enjoyable. The company's new Test Drive Center blends digital tools, self-guided exploration, and a surprisingly playful approach to vehicle discovery. Carvana unveiled its new Test Drive Center concept at a Dallas CDJR dealership, centered around helping customers explore inventory at their own pace. A giant interactive "Cube" lets shoppers browse real, available inventory using their phones, narrowing preferences without building hypothetical vehicles. Vehicles are displayed in a "playground" environment designed for exploration—open doors, sit inside, compare features, and scan QR codes without feeling pressured. The experience emphasizes customer autonomy, with advocates available when needed but designed around self-guided discovery first. Carvana's President of Special Projects, Tom Taira, summed up the philosophy: "We want to be a place where people want to shop again." The 2026 FIFA World Cup is creating travel headaches far beyond the pitch, with United Airlines at the center. After weather and crew-time limits stranded a Fox Sports broadcast team at 3 a.m. in Washington, D.C., they took matters into their own hands. Broadcasters Ian Darke and Landon Donovan were diverted from Newark to Dulles after storms disrupted air traffic. Their United flight was further delayed when the pilot timed out just one minute before departure. Faced with an 8 a.m. rescheduled flight, the crew ditched the airport and rented a car to make it to New Jersey. Donovan summed up the ordeal, saying it was "easily the worst travel experience of my life."
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Have FTC Warnings Caused Enough Change?, AI Bot Bait and Switch, Live From DC
2w ago00:08:40Tap to summarizeEpisode #1372: Paul’s in DC today for the CBT News Auto Leadership Summit on Fair Pricing and Compliance, and we’re talking about how much the industry has (or hasn’t) shifted since the FTC put 97 dealers on notice. Plus, when an AI chatbot overquotes a customer, who’s to blame? Show Notes with links: Even as the FTC is turning up the heat on deceptive vehicle pricing, new data suggests hidden charges remain common across both used and new vehicle sales. CoPilot found 59% of 500 assisted used-car purchases included discretionary fees not reflected in the advertised online price. CarEdge found meaningful differences between advertised prices and actual quotes at nearly 40% of dealers with CEO Zach Shefska saying: “There is still endemic price misinformation on the internet.” In April, Lindsay Automotive Group agreed to a settlement with the FTC that could cost up to $75 million in consumer restitution plus a $3.1 million penalty tied to deceptive pricing and unwanted add-ons. Dealers who advertise all-in pricing say they're often competing against stores showing lower teaser prices and revealing fees later in the buying process. FTC Consumer Protection Bureau Director Christopher Mufarrige says the agency has been encouraged by dealer responses so far, but added: “That said, you’ve always got your bad apples out there.” A Canadian BMW owner thought he'd successfully negotiated the sale of his vehicle back to the dealership, only to discover the AI bot he had been chatting with had quoted him $7000 more than the store was willing to pay Toronto BMW customer Zack Giacomelli received a trade-in offer of $27,162 from "Quinn," even scheduling an appointment to finalize the deal. BMW Toronto initially lowered the offer by roughly $7,000, but after media inquiries agreed to honor the chatbot's original price. Management said the inflated offer stemmed from a miscommunication by a human employee that caused the bot to interpret Giacomelli's loan balance as the vehicle's purchase price. The dealership says it will make it clearer when customers are interacting with AI and ensure future vehicle purchase offers come directly from human employees. “It’s a bit of a new territory for us. We’re trying to figure out the best way for a good AI customer experience.” — Scott Shadbolt, Pre-Owned Sales Manager, BMW Toronto. Today’s show is brought to you by our friends at Widewail. who can show you where your dealership stands on issues the FTC is currently scrutinizing. Join their webinar on the topic June 18th at widewail.com/FTC.
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