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On this last Saturday of the month, we're talking about how the Sames Auto Group donated $10 for every test drive to their local children's hospital. They have a goal of 2000 test drives on the month and we'll check back into see how they're doing.

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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Episode #1325: Cox Automotive makes a major AI acquisition, April sales show resilient demand under affordability pressure, and developers everywhere are racing to keep up with AI.

Show Notes with links:

• Cox Automotive is doubling down on AI with its planned acquisition of Fullpath, signaling a major shift toward fully connected, data-driven retail. The move aims to help dealers turn fragmented data into smarter marketing and more personalized customer experiences.
  • Fullpath specializes in stitching together years of CRM and DMS data into a single customer profile.
  • The platform enables always-on, AI-driven campaigns with attribution from click to purchase.
  • Cox plans to integrate this with assets like Autotrader and Kelley Blue Book shopper data.
  • For dealers, this means less manual marketing and more automated, high-precision engagement.
  • “Fullpath gives dealers the AI and data infrastructure they need to compete.” – Steve Rowley, Cox Automotive

• New vehicle sales are holding steady—but the story underneath is all about pressure. April’s forecast from JD Power shows demand staying resilient even as affordability challenges mount, with rising payments, growing negative equity, and increased incentives reshaping how dealers move metal.
  • April new vehicle sales are projected at 1.36M units, down 7.3% year-over-year—but last year’s numbers were inflated by tariff-driven pull-ahead demand.
  • Average monthly payments hit a record $812, driven by declining trade-in equity and higher negative equity rates.
  • Incentives are climbing again, averaging $3,141 per vehicle, with EV incentives still topping $10K per unit.
  • Leasing is on the rise, now at 23.2%, as more customers return to the market after the pandemic gap.
  • “Affordability continues to constrain the vehicle sales pace…” – Thomas King, JD Power

• Developers are now spending hours each week learning new AI skills, turning upskilling into a required part of staying relevant in a rapidly evolving tech landscape.
  • Many engineers are spending 5–20+ hours per week learning AI tools, courses, and concepts to keep up.
  • AI is reshaping roles, with traditional engineering work shifting toward AI implementation and integration.
  • The pressure is clear: adapt quickly or risk falling behind in the job market.
  • Even tech leaders are dedicating significant time to experimenting with AI tools to stay ahead.
  • “In order to keep up with everything that's coming out right now, you have to have no job.” – Jason Grad, CEO, Massive

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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Episode #1324: Rising gas prices are pushing renters toward EVs, negative equity hits near-record highs, and JPMorgan’s AI tracking shows how fast workplace expectations are shifting.

Show Notes with links:

• Rising gas prices tied to Middle East conflict are nudging rental customers toward EVs, giving the segment a short-term demand boost—even as broader U.S. EV sales remain soft.
  • Hertz saw EV rental requests jump nearly 25% month-over-month, with strongest demand on the West Coast where gas prices hit hardest.
  • Turo reported an 11% booking increase in late March, with a 47% spike the day gas topped $4/gallon.
  • Fuel prices have surged over 30% since late February due to Strait of Hormuz disruptions impacting global oil flow.
  • While new EV sales are down 25% YoY, used EV prices and rental demand are climbing as consumers seek short-term savings.
  • John Coles of ACV Auctions said, “We have seen EVs get a second lease on life due to the sustained pressure at the pump.”

• Negative equity is making a serious comeback, with Edmunds reporting more car buyers rolling bigger chunks of debt into new loans—tightening affordability and reshaping the trade-in cycle across the industry.
  • Nearly 31% of trade-ins in Q1 2026 carried negative equity, approaching record highs as used vehicle values normalize.
  • The average amount owed hit $7,183—up 42% from five years ago—showing how much debt is being carried forward.
  • Longer loan terms are a key driver, with over 90% of these deals stretching to at least 72 months.
  • More buyers are deeply underwater, with 26% rolling over $10K+ into their next loan, pushing monthly payments to record levels.
  • Edmunds said, “Many consumers who rolled debt into their last purchase are now finding there is no easy exit.”

• JPMorgan is turning up the heat on AI adoption, tracking how often engineers use tools like Copilot and ranking them internally—raising concerns about performance pressure and workplace surveillance.
  • The bank is pushing its 65,000 tech employees to show “meaningful improvement” in code output using AI tools.
  • Internal dashboards rank engineers by AI usage, with categories like “non,” “light,” and “heavy” users visible across teams.
  • Some employees worry they’ll be labeled underperformers if their AI usage doesn’t increase, despite unclear metrics.
  • The tracking reflects a broader trend as companies try to prove ROI on massive AI investments.
  • One developer said, “I thought this AI tool was supposed to make our lives easier, but it really seems to have stepped up how much we're expected to do.”

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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Episode #1323: Carvana keeps buying rooftops while Stellantis slows consolidation. GM delays its next-gen EV trucks amid weak demand, and Sony-Honda scale back Afeela.

Show Notes with links:

• Carvana just scooped up its seventh CDJR store, planting its first franchised flag in Ohio. The online disruptor continues its push into traditional retail—while Stellantis quietly pumps the brakes.
  • Carvana acquired Avon Lake CDJR near Cleveland, strengthening its hybrid model, pairing physical rooftops with its online sales and distribution network.
  • Stellantis recently limited buyers to one CDJR store per year, signaling a push to slow consolidation and maintain dealer network balance.
  • Analysts say these stores double as regional logistics hubs, keeping delivery distances within that 300–400 mile sweet spot.
  • “Nobody wants to sell a Lexus store…with Stellantis, there’s a ready supply.” said analyst Jeff Lick of Stephens Inc.

• GM is hitting pause on the future of its electric truck lineup, shelving plans for a next-gen refresh and signaling a sharper pivot back to gas-powered pickups as EV demand—and profitability—continue to lag.
  • GM has indefinitely delayed its planned 2028 refresh of full-size EV trucks and SUVs, including Silverado EV and Escalade IQ.
  • The move follows $7.6B in EV-related charges and a sharp drop in sales after federal incentives disappeared.
  • Current EV truck volumes remain low, while GM is adding production capacity for gas-powered heavy-duty pickups.
  • Factory Zero, once the centerpiece of GM’s EV strategy, has seen layoffs, shutdowns, and reduced shifts amid weak demand.
  • “EVs remain the end game for GM,” the company said, despite the pause in next-generation planning.

• Sony and Honda are scaling back their joint venture after deciding the current setup couldn’t deliver competitive products anytime soon.
  • Sony Honda Mobility is reducing operations after scrapping plans for its Afeela EV lineup.
  • Employees will be reassigned back to Sony and Honda as the JV winds down activity.
  • The companies cited challenges bringing products to market under the current structure.
  • Even as EV plans fade, the partners say they’ll continue focusing on software and user experience innovation.
  • “It would be difficult…to bring products and services aligned with the JV’s purpose to market,” the companies said.

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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Episode #1322: The FTC wants dealers to report rule-breakers, Tesla turns Cybertrucks into grid assets with a simpler V2G play, and Apple announces a historic CEO transition

Show Notes with links:

The FTC is now asking dealers to help police each other on advertising. In a recent NAD webinar, regulators emphasized reporting bad actors and clarified key pricing rules, especially around doc fees and how total vehicle price must be presented.

• • The FTC is encouraging dealers to report competitors who violate ad rules, aiming to level the playing field.
  • Complaints can be submitted directly or through NADA, signaling a more collaborative enforcement approach.
  • Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection clarified that doc fees must be included in the advertised total price—not added later in the deal.
  • Total vehicle price must be displayed more prominently than MSRP in ads across all channels.
  • “[It’s important that] the consumer understands what it is that they’re going to be paying to get the car out the door,” said Christopher Mufarrige.

• The Cybertruck is officially now a grid asset. Tesla and PG&E just approved it for vehicle-to-grid use in California, and the bigger story isn’t just capability—it’s a simpler, cheaper path that could finally make energy-sharing scalable.
  • Unlike Ford and GM setups, Tesla uses an AC-based system—avoiding $6K–$10K DC charger installs.
  • Lower hardware complexity could remove a major barrier for homeowners to join grid programs.
  • Owners opt in to send energy back during peak demand—and get paid for it.
  • With 123 kWh onboard, each Cybertruck adds ~9x the storage of a typical home battery.
  • “Electric vehicles can do more than move people — they can help power homes,” said PG&E’s Jason Glickman.

• One of the most influential CEOs in modern business is stepping aside. Apple announced that Tim Cook will transition to executive chairman this fall, handing the CEO role to longtime insider John Ternus—marking the first major leadership shift since the Steve Jobs era.
  • John Ternus, Apple’s hardware engineering chief, will become CEO on September 1, 2026.
  • Cook will stay on as executive chairman, focusing in part on global policy and regulatory relationships.
  • The move caps a long-planned succession, not a sudden shakeup—Apple signaling stability.
  • Ternus brings a product-first background, having led hardware during Apple’s silicon and device expansion era.
  • “He is without question the right person to lead Apple into the future,” said Tim Cook.

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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Episode #1321: Sedans eye a comeback as affordability bites, tax refunds rise but don’t fully convert to sales, and a $2K stripped Tesla proves EV durability in the wildest way possible.

Show Notes with links:

https://www.autonews.com/manufacturing/automakers/an-general-motors-sedan-strategy-0419/#
After years of getting crowded out by crossovers, sedans are quietly making a return. Rising prices, shifting regulations, and a hunger for something different have automakers reconsidering the segment many left for dead.
Automakers like GM, Stellantis, and Infiniti are exploring new sedan entries, some targeting sub-$30K price points to win back budget-conscious buyers.
Sedans are gaining traction again, with Camry, Accord, and K5 posting double-digit sales increases while some crossovers lose share.
With average vehicle prices over $50K, sedans offer a more affordable alternative and fill an underserved gap in the market.
Design fatigue is real—executives say SUVs are getting “boring,” while sedans offer more room for style and brand differentiation.
“There’s opportunity for sedans to nibble into utility vehicles,” said S&P’s Stephanie Brinley.

https://news.dealershipguy.com/p/https-news-dealershipguy-com-p-first-tax-season-under-one-big-beautiful-bill-ends-refunds-up-11
The first tax season under the “One Big Beautiful Bill” brought bigger refunds—but not a clean win for dealers. Higher cash in pockets met higher costs at the pump and on loans, creating a mixed bag on showroom floors.
Average refunds jumped 11% to $3,462, with total payouts up 14.5%, boosted by new deductions, credits, and no tax on tips or overtime.
Dealers saw uneven results—some stores surged, others lagged—as gas prices topped $4 and interest rates stayed elevated.
Used market demand leaned toward “near-new” value buys, as shoppers stretched dollars against $50K new-vehicle pricing.
Subprime activity ticked up, but down payments shrank, signaling affordability pressure despite larger refunds.
“If the war ends…we could see a monster Q4 in ’26,” said Potamkin CEO Cole Potamkin.

https://electrek.co/2026/04/18/youtuber-buys-stripped-tesla-model-3-go-kart-2000-212-miles-range/
YouTuber, Remmy Evans, bought a completely stripped Tesla Model 3 for $2,000—and drove it like a go-kart. Somehow, the battery and motors didn’t get the memo.
The car had no body panels, windshield, or seatbelts—just the core EV components—and still showed 212 miles of range.
Despite 78 error codes and missing safety systems, it was driven on public roads, drifted, off-roaded, and even jumped.
Charging proved tricky, with hacked adapters and slow Level 2 charging due to software limitations.
Tesla’s software may eventually restrict functionality as it detects missing components, highlighting challenges for rebuilders.
The big takeaway: EV drivetrains are incredibly durable—even when everything else is gone.

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/

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There's nothing better than Saturday morning, especially because Kyle and Paul get to sit down with Chris Reeves and talk about some of the amazing things happening across their industry today. We talk about how retail automotive's largest auto group, Lithia, is still able to get hyper local with their service to the community.

More Details Here.

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/

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Episode #1322: Dealers brace for long-awaited FTC answers, Ford walks a tightrope with China partnerships, and automakers could be heading back to wartime production.

Show Notes with links:

https://nada.zoom.us/webinar/register/9017738594625/WN_PU_CgJt2Rx-fOlCP7hJ6yw#/registration
After a frustrating first attempt, NADA is back with the FTC for a do-over webinar addressing the 97 warning letters sent to dealers. This time, expectations are high—and so is the pressure to finally deliver clarity.
The initial webinar drew 4,000+ attendees but ended abruptly when the FTC declined to answer questions—leaving dealers needing guidance.
Dealers are still seeking clarity on key issues like advertising practices, including whether doc fees must be included in vehicle pricing.
NADA escalated concerns directly to FTC leadership, prompting a second session with new representation from the Bureau of Consumer Protection.
Senator Bernie Moreno emphasized alignment on transparency goals but stressed the need for clear, actionable rules.
NADA President Mike Stanton didn’t hold back: “A complete waste of everybody’s time… We were told that we would get our questions answered.”

https://www.wsj.com/business/autos/ford-will-partner-more-with-chinese-automakers-overseas-66cc23c9?mod=autos_news_article_pos2
Ford CEO Jim Farley is threading a strategic needle—warning about China’s growing dominance while simultaneously expanding partnerships overseas. The message is clear: compete where you can, collaborate where you must.
Farley says Chinese automakers are leading in tech, cost, and speed—forcing global competitors to rethink strategy.
Ford plans to deepen partnerships with Chinese companies outside the U.S. to stay competitive in international markets.
At home, Ford is pushing for protections, warning that unchecked Chinese imports could “devastate” U.S. manufacturing and jobs.
The company is accelerating its own EV manufacturing overhaul to better compete on affordability and scale.
Farley didn’t mince words: “You don’t become fit like the rest of the Chinese… you aren’t going to be around much longer.”

https://www.jalopnik.com/2149778/pentagon-wants-automakers-build-fewer-cars-more-weapons/
As global conflicts strain U.S. supply chains, the Pentagon is turning to an unexpected ally—automakers. Early talks suggest OEMs may once again be asked to shift from building cars to supporting national defense.
Defense officials have approached leaders like GM’s Mary Barra and Ford’s Jim Farley about ramping up weapons production capacity.
Ongoing conflicts in Ukraine and Iran have rapidly depleted U.S. munitions stockpiles, accelerating urgency.
The strategy echoes WWII-era manufacturing pivots, with automakers potentially backstopping traditional defense contractors.
Automakers were asked how quickly they could shift production—and what barriers exist in contracts and bidding processes.
A Pentagon official emphasized the mission: expanding capacity to ensure warfighters maintain a “decisive advantage.”

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/