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

Episode Title: Will Donald Trump Change the American Automotive Industry?
Release Date: November 8, 2024
Hosts: Doug DeMuro, Ken, and Filippo

Introduction

In this engaging episode of THIS CAR POD! with Doug DeMuro & Friends, host Doug DeMuro, along with his co-hosts Ken and Filippo, delve into a myriad of topics affecting the automotive industry. The episode navigates through political impacts, industry events, brand performances, market reports, and listener interactions, all while maintaining a lively and informative atmosphere.

Main News Discussion: Donald Trump's Election and Its Impact on the Automotive Industry

The episode kicks off with a significant news update: Donald Trump's election as President and its potential ramifications for the American automotive sector.

Tariffs and Trade Agreements:
Filippo initiates the discussion by highlighting the complexities surrounding Trump's tariff proposals, especially concerning Mexico, a key manufacturing hub for many U.S.-sold cars.

Filippo [02:28]: "There's been a lot of talk on tariffs from the Trump campaign, including on Mexico. A lot of cars sold in the US are built in Mexico, which would raise their cost significantly."

Doug expresses skepticism about the feasibility of implementing such tariffs without violating existing agreements like NAFTA.

Doug DeMuro [03:16]: "NAFTA has allowed broad ability for automakers to produce in Mexico and Canada without any sort of tariffs. I suspect that despite Trump's rhetoric, tariffs might not materialize as expected."

Electric Vehicle (EV) Incentives:
A critical part of the conversation centers on EV incentives, which Doug believes will be a more substantial change than tariffs. The discussion touches on how these incentives have driven automakers to invest heavily in EVs, citing examples like Tesla's maneuvers in China.

Doug DeMuro [04:33]: "Electric vehicle incentives will be the big change. Automakers are heavily incentivized to produce EVs because of the financial benefits."

Industry Uncertainty:
Filippo and Doug discuss the uncertainty surrounding how automakers will adapt their EV strategies amidst potential policy shifts, emphasizing the challenges of balancing innovation with regulatory compliance.

Filippo [05:39]: "Most manufacturers have invested heavily in EVs, and changing incentives could disrupt their progress."

SEMA Discussion: Highlights and Critiques

Transitioning to industry events, the hosts shift focus to SEMA (Specialty Equipment Manufacturers Association), an annual automotive specialty products trade event held in Las Vegas.

Impressive Builds and Automaker Participation:
Doug shares his admiration for the innovative builds showcased at SEMA, particularly praising Toyota's unique two-door convertible four-runner.

Doug DeMuro [11:00]: "Toyota has built this two-door convertible four-runner looking like the old school '80s ones with a roll bar and a surfboard, and it's cool."

Mixed Reactions to Modded Cars:
However, Filippo introduces a critical perspective by mentioning Strickland Motor Company's E46-based V8-powered station wagons, sparking a debate about the practicality and authenticity of such modifications.

Filippo [12:01]: "There's a company making E46-based V8-powered station wagons. It's striking but raises questions about its market appeal."

Ken expresses skepticism about the value and appeal of heavily modded cars, leading to a spirited discussion about the balance between creativity and functionality in automotive modifications.

Ken [12:21]: "Nothing at SEMA is real. It's all modded crap that I don't care about."

EV9 Adventure Concept:
The conversation also touches on Kia's EV9 Adventure concept, critiquing its practicality and design.

Doug DeMuro [14:37]: "The EV9 Adventure won't sell. It’s a massive range trade-off for aesthetic tweaks like off-road tires."

Aston Martin: Financial Struggles and Brand Assessment

The hosts shift focus to Aston Martin, discussing the brand's ongoing financial difficulties and declining sales.

Financial Losses and Sales Decline:
Ken highlights Aston Martin's alarming daily losses and significant drop in sales figures, particularly for the DBX model.

Ken [17:48]: "Aston Martin is reporting $1.8 million in losses per day and their DBX is down 52% in sales."

Debt Accumulation:
Filippo adds that Aston Martin is increasing its debt burden to fund further investments, exacerbating its financial woes.

Filippo [18:16]: "They've taken on $1.57 billion more in debt to invest more in the company."

Brand Evaluation:
Doug and Ken critically assess Aston Martin's brand strategy, noting the lack of distinctive appeal compared to competitors and the heavy depreciation associated with their vehicles.

Doug DeMuro [19:32]: "Aston Martin is desirable conceptually, but when it comes to selling cars, the market disagrees."

Suggestions for Improvement:
Ken proposes that Aston Martin should abandon its current brand principles and focus on producing mid-engine, manual transmission sports cars to rejuvenate its brand appeal.

Ken [22:32]: "Abandon the whole brand principle and go mid-engine, manual transmission sports car. That's how you save the brand."

Lamborghini's Resurgence: A Bright Spot in the Exotic Car Industry

In contrast to Aston Martin's struggles, the conversation shifts to Lamborghini, highlighting the brand's impressive performance and sales growth.

Record Sales and Revenue:
Ken shares exciting news about Lamborghini's Revuelto model, which has a two-year waiting list and contributed to substantial revenue growth.

Ken [24:02]: "Lamborghini has announced $2.6 billion in revenue this year and delivered 8,411 cars in 2024."

Comparison to Ferrari:
Filippo and Doug draw comparisons between Lamborghini's current success and Ferrari's historical resurgence under Luca di Montezemolo, suggesting that Lamborghini is on a similar path to becoming more commercially successful while maintaining desirability.

Doug DeMuro [25:08]: "Lamborghini is excelling in a way they never have before, unlike Ferrari's SF90 which is depreciating."

Revuelto vs. Ferrari SF90:
Doug contrasts the Revuelto with Ferrari's SF90, praising Lamborghini's model for its desirability and market performance despite the latter's technological issues and depreciation.

Doug DeMuro [26:43]: "Revuelto is highly desirable with a two-year waitlist, whereas the SF90 is facing depreciation issues."

Motorsport Involvement:
Ken emphasizes the importance of Lamborghini increasing its presence in motorsport to further elevate its brand prestige, akin to Ferrari's long-standing involvement in racing.

Ken [29:01]: "Ferrari has always been a race team. Lamborghini needs to step up in motorsport to elevate its status."

Market Report: Current Trends and Notable Sales

The hosts provide a market report, discussing current trends and notable sales on the Cars and Bids platform.

Featured Listings:
Filippo highlights two exciting listings: a Baja Bug being sold by Slick Stevie and a Lotus Amira listed by the Stradman, showcasing the diverse range of vehicles available.

Filippo [43:35]: "We have Slick Stevie selling a Baja Bug and the Stradman listing a Lotus Amira, both live on our site."

BMW E39 M5 Appreciation:
Ken presents data indicating that the BMW E39 M5 is gaining value in the classic car market, outperforming its successors in terms of appreciation, thereby becoming a sought-after classic.

Ken [45:07]: "The BMW E39 M5 is ascending as a classic, averaging around $35,000 over the last year."

Depreciation of Newer Models:
Conversely, newer models like the BMW F90 M5 are experiencing rapid depreciation, making them attractive options for used car buyers seeking value.

Doug DeMuro [48:00]: "The F90 M5 is sinking fast in value, but it's a great pick for a used car due to its low mileage and modern features."

Listener Q&A: Modifications and Automotive Career Advice

Question 1: What mods/upgrades do you believe retain or even improve car resale values the most? Conversely, what mods hurt resale value the most?
Asked by: Luis (spelled with a "1")

Answer:
The hosts agree that most modifications tend to depreciate a car's value, particularly those that are easily changeable or highly personalized. Aftermarket wheels and tinted lights, for example, often deter potential buyers.

Ken [51:46]: "Any car with aftermarket wheels that are clearly aftermarket is going to hurt its value."

Conversely, modifications that enhance reliability or demonstrate serious care for the vehicle can help retain or even improve resale value. Examples include fixing known mechanical issues or adding high-quality, stock-compatible parts.

Filippo [53:11]: "Fixing specific issues that a car is known for, like better head bolts or s54 rod bearings in the E60 M5, can improve resale value."

Question 2: If you could magically change the M5's color to any other BMW factory color, what color would you choose?
Asked by: Oes

Answer:
Ken expresses a strong preference for Avis Blue, a rare and aesthetically pleasing color offered on the E36 M3 and E39 M5, while Doug shares his fondness for silver, particularly for its classic appeal on models like the Carrera GT.

Ken [55:07]: "Avis blue was very pretty and is one of my favorite colors for the E39 M5."

Doug DeMuro [56:04]: "I really like the Carrera GT in silver; it complements the car's design perfectly."

Question 3: As a senior graduating college soon, any advice on how to land a job like Doug had at Porsche early in his career?
Asked by: Amir Hassan

Answer:
Filippo admits to not having a direct answer, but Doug emphasizes the importance of starting at a dealership to gain extensive automotive experience and build industry connections. Ken adds that genuine enthusiasm and investing in relationships are crucial for career advancement.

Doug DeMuro [60:07]: "Consider starting at a dealership. It gives you an unbelievable amount of automotive experience."

Ken [61:10]: "Build relationships as friends, not just for job opportunities. Genuine passion carries you a long way."

Question 4: How do you feel about being called yuppies by Scotty Kilmer in his recent video?
Asked by: P33KYN

Answer:
Doug addresses the remarks without bridging negativity, expressing respect for Scotty Kilmer's success while distancing himself from engaging in online disputes. He emphasizes focusing on positive content creation over participating in YouTube drama.

Doug DeMuro [65:02]: "I have a lot of respect for Scotty, but I won't engage in these cheap ways to get views."

Conclusion

The episode concludes with the hosts encouraging listeners to engage with the Cars and Bids app, explore featured listings, and participate in the community forums for further discussions and questions. They balance insightful automotive analysis with light-hearted banter, providing a comprehensive overview of current trends and personal experiences within the industry.

Filippo [67:30]: "Download the app and also go to merch.com."

Doug DeMuro [67:40]: "Thanks always, corporate. Always. I appreciate it. Goodbye, everyone."

Notable Quotes:

• Doug DeMuro [02:03]: "I don't need to hear it anymore. I want to talk about what this means for the automobile industry."

• Ken [17:48]: "Aston Martin is reporting $1.8 million in losses per day and their DBX is down 52% in sales."

• Filippo [24:16]: "How many cars Lamborghini sell? I have no concept."

• Doug DeMuro [56:04]: "I really like the Carrera GT in silver; it complements the car's design perfectly."

• Ken [61:10]: "Build relationships as friends, not just for job opportunities. Genuine passion carries you a long way."

This detailed summary encapsulates the key discussions, insights, and conclusions drawn by Doug DeMuro and his friends, providing a comprehensive overview for those who haven't listened to the episode.