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.

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