Podcast Summary: THIS CAR POD! with Doug DeMuro & Friends!

Episode: Aston Martin Bringing Manual Transmissions and V12 Engines Back! Ferrari Goes EV!
Release Date: February 7, 2025
Hosts: Doug DeMuro, Ken, Filippo

1. Tariffs and the Automotive Industry

[00:37 - 02:24]

The episode opens with a discussion on recent tariff announcements by the Trump administration. Initially, tariffs of 25% on goods from Canada and Mexico, and an additional 10% on Chinese imports were slated to affect the automotive industry. However, Filippo clarifies, "They actually said midday Friday that they would be announcing the tariffs on Saturday... but on Monday they rolled them back and they never went into effect" [01:10]. The hosts express concerns about the potential impact if tariffs had been implemented, noting that "an enormous number of cars are built in Canada and Mexico" [01:46]. Doug DeMuro adds, "It is hard to explain how significant of an impact this would have on the auto industry" [01:46], but ultimately, the tariffs were not enforced, aligning with their initial predictions.

2. Aston Martin's Strategic Shifts

[02:47 - 07:03]

Ken introduces the first major news story: Aston Martin's recent strategic changes under their new CEO, Adrian Hallmark, who was formerly with Bentley [02:47]. Hallmark has decided to delay the release of Aston Martin's anticipated electric vehicle (EV), stating, "no, we're pushing that down the road" [03:17]. Despite this delay, Filippo mentions Aston Martin's collaboration with Lucid for engine purchases [03:20].

A significant focus is on Hallmark's advocacy for the return of manual transmissions and V12 engines. Ken highlights, "We need manual transmissions. He believes in the idea that he's seen Porsche's business model, what they've been able to do with that" [03:33]. Though Aston Martin had previously offered manual transmissions in models like the Vantage, these did not resonate well with the market [04:09].

Doug DeMuro critiques Aston Martin's position, stating, "Aston Martin has the same flaw as Jaguar and Maserati, which is they are not enthusiast brands. They are luxury brands" [05:06]. The hosts discuss the brand's challenges, including overproduction and lack of a dedicated enthusiast following, contrasting it with brands like Ferrari and Porsche [05:06].

Despite the criticisms, Filippo remains optimistic, suggesting that with the right marketing and car offerings, Aston Martin could carve out an enthusiast niche [06:32]. Ken echoes this sentiment, appreciating Hallmark's vision and hoping for exciting new models [06:46].

Doug DeMuro remains skeptical, recalling past attempts by Aston Martin to revive interest through special editions and manuals without significant success [07:03]. However, he acknowledges the potential positive impact of their racing ambitions, particularly with the Valkyrie [07:03].

3. Aston Martin Valkyrie and Racing Ambitions

[07:54 - 11:10]

Ken shifts the conversation to the Aston Martin Valkyrie, an upcoming supercar powered by a naturally aspirated V12 Cosworth engine [07:57]. The team discusses Aston Martin's plans to enter the Valkyrie in racing events, including Le Mans, after extensive development testing [08:15]. Doug DeMuro reminisces about his experience driving the Valkyrie, describing it as "vibration city" with an engine that "revved to 15,000" [08:18].

The hosts highlight the resurgence of major manufacturers in racing, noting Ford's return to Le Mans and Ferrari's participation in Formula One [09:01]. They argue that such moves are essential for brands to regain their enthusiast appeal and market relevance [10:01]. The potential success of the Valkyrie in racing could enhance Aston Martin's brand image, making it more appealing to car enthusiasts [11:00].

4. Ferrari's Shift to Electric Vehicles and Market Performance

[11:10 - 17:14]

Ken brings up Ferrari's announcement to launch their first electric vehicle on October 9th, noting the brand's move towards electrification [11:15]. Filippo adds that in 2024, 51% of Ferraris sold were hybrids, indicating a significant shift in their vehicle lineup [11:55]. Ferrari is targeting the Chinese market, which has a high demand for EVs, to expand their presence [12:12].

Doug DeMuro revisits his previous critique titled "Ferrari Lost Its Luster," clarifying that while Ferrari is experiencing record profits and increased car sales [12:42], his main concern was with their past business strategy of limiting sales to select clientele [13:03]. He explains, "Ferrari's point would be we're selling cars and making money through you... selling them to people who remember the old era" [17:14].

Filippo counters, suggesting that Ferrari's strategy of targeting new wealthy customers without strict exclusivity could still preserve the brand's prestige [14:16]. However, Ken expresses concern that Ferrari's broader sales approach might dilute their luxury and exclusivity, making them resemble brands like Maserati [15:27].

Doug DeMuro acknowledges the complexities, noting that a stronger presence in markets like China could help Ferrari maintain its brand value [17:14]. He emphasizes that while selling more cars to a wider audience can increase revenue, it might also risk undermining the brand's elitist image [17:12].

5. Audi's Naming Structure Confusion

[19:55 - 22:43]

Ken introduces the next news segment about Audi's confusing naming structure [19:55]. Filippo explains that Audi plans to differentiate their electric and gas-powered vehicles by using "E-Tron" for EVs and "TFSI" for traditional engines [20:08]. Previously, Audi had attempted an odd-even naming system where even numbers denoted EVs and odd numbers indicated gas-powered cars [20:11]. This system led to inconsistencies and confusion, especially with multiple models like the E-Tron SUV and sedan [21:17].

Doug DeMuro reminisces about Audi's historical naming conventions, highlighting the shift from the simplistic A3, A4, A6, and A8 to more convoluted designations [20:50]. The hosts critique the lack of clarity in Audi's recent naming strategies, expressing frustration over the complexity and resulting market confusion [22:24].

Filippo and Ken agree that reverting to more straightforward naming, akin to Audi's original lineup, would be beneficial for brand identity and consumer recognition [22:39]. The discussion underscores the importance of a clear and consistent naming strategy in maintaining brand integrity and customer loyalty.

6. Honda and Nissan Merger Talks

[22:51 - 24:38]

Ken brings up the recent, yet stalled, talks between Honda and Nissan regarding a potential merger [22:58]. Initially, Honda suggested restructuring Nissan, potentially making it a subsidiary [23:02], but Nissan's board rejected the proposal, leading to the collapse of merger discussions [23:02]. The conversation touches on Nissan's financial struggles, with rumors of impending insolvency if a merger doesn't occur [23:28].

Doug DeMuro speculates on the future, suggesting that without a merger, Nissan might face bankruptcy, and its assets could diminish in value [23:35]. Filippo points out that other Japanese manufacturers might be eyeing potential deals, but Honda's reluctance to take on Nissan's issues complicates matters [24:05]. The hosts agree that while the merger talks have fallen through for now, the automotive landscape remains uncertain, and further developments are expected [24:38].

7. Car Gift Exchanges and Discussions

[25:28 - 35:31]

In a lighter segment, Doug DeMuro shares anecdotes about gifting cars to Filippo, including a Matchbox Chevy Blazer EV and a used Mercedes-Benz CLA shooting brake [25:35 - 26:23]. The trio humorously critiques these gifts, highlighting the impracticality and uniqueness of such presents.

Doug transitions to discussing his recent video on the Toyota 4Runner, referencing the mixed reactions from the community [26:27 - 29:22]. He defends the new hybrid 4Runner against criticism, comparing it to past generational shifts in other vehicles and predicting that enthusiasts will eventually appreciate the updates [28:05 - 29:22].

The conversation evolves into a broader discussion on enthusiasts' resistance to change in beloved models, referencing vehicles like the Land Cruiser and Subaru Outback. Doug emphasizes that such resistance is common across the automotive community, drawing parallels with past reactions to new car models [29:44 - 31:10].

8. Market Report: Depreciation of Audi X3M

[35:53 - 44:54]

Ken presents the market segment focusing on the depreciation of Audi X3M models [35:53]. He notes significant drops in resale values, highlighting that a 2020 Audi X3M initially priced at $85,700 was sold for $44,500 [41:00]. Filippo corroborates this trend, mentioning similar sales figures [41:21].

The hosts discuss the implications of such depreciation, suggesting that it offers buyers an opportunity to purchase high-performance SUVs at reduced prices [42:00]. Ken appreciates the balance of performance and affordability, while Doug DeMuro praises the X3M's driving dynamics, asserting that it "handles well, it's fun to drive" [43:05].

They also touch upon the minimal differences between various X3M models in the U.S. market and the subtle design changes that may confuse average consumers but appeal to enthusiasts [44:12 - 44:54]. The segment concludes with a consensus that the Audi X3M represents a compelling value proposition for buyers seeking performance without the hefty price tag.

9. Audience Questions and Discussions

[52:02 - 66:10]

The hosts engage with audience questions, addressing topics such as the transparency of auction sale prices and the possibility of racing their E39 M5 against Ken's vehicle [52:02 - 55:10]. Ken expresses disinterest in street racing, emphasizing safety and legality, while Doug DeMuro humorously contemplates future importations of high-performance vehicles [55:31 - 56:10].

A significant question revolves around the willingness to purchase EV sports cars. Ken firmly states, "EV sports cars don't have any... I want an engine. I want sound. I want vibration and emotion" [55:37], reflecting a preference for the traditional sports car experience. Filippo, however, is more open to EVs under specific circumstances, such as long road trips and improved EV sports car offerings [56:07].

Another audience question inquires about the future values of imported cars as import regulations ease [57:06 - 60:35]. The hosts predict varied outcomes depending on the model's popularity and desirability. Ken anticipates steady appreciation for iconic models like the Audi Z8, while Filippo is less optimistic about models like the R34 Skyline due to increased supply [59:02 - 60:35].

10. Conclusion and Final Remarks

[66:06 - End]

In the concluding segments, the hosts recap their discussions, share humorous anecdotes about past car challenges, and emphasize the evolving nature of automotive preferences and industry trends [66:06 - End]. They encourage listeners to engage with the podcast through the Cars and Bids platform and promote upcoming features and content [70:00].

Notable Quotes with Timestamps

• Filippo: "They actually said midday Friday that they would be announcing the tariffs on Saturday... but on Monday they rolled them back and they never went into effect." [01:10]

• Ken: "We need manual transmissions. He believes in the idea that he's seen Porsche's business model, what they've been able to do with that." [03:33]

• Doug DeMuro: "Aston Martin has the same flaw as Jaguar and Maserati, which is they are not enthusiast brands. They are luxury brands." [05:06]

• Ken: "It's possible... I'm rooting for Aston Martin commercially and I'm rooting for them on the racetrack." [06:46]

• Filippo: "There are a lot of wealthy people." [14:16]

• Doug DeMuro: "Ferrari has not lost its luster. I apologize deeply for the folks who didn't understand the incredible nuance." [17:12]

• Doug DeMuro: "If the consulta really want to stay real, they're going to have to do classes of younger vehicles and maybe start thinking about moving up to a more modern era." [39:44]

• Ken: "EV sports cars don't have any... I want an engine. I want sound. I want vibration and emotion." [55:37]

• Filippo: "If there were a cool EV sports car, I don't need my daily driver to have four seats." [56:36]

This episode of THIS CAR POD! delves deep into significant industry shifts, brand strategies, market trends, and community interactions, providing listeners with comprehensive insights into the evolving automotive landscape.