The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

It’s Thursday and we’re talking about Carvana’s best performance ever. We’re also discussing Hertz’s decision to sell more of it’s EV inventory, as well as a wild story about the ongoing dispute around the legendary Delorian. Carvana’s latest earnings are signaling a substantial turnaround with a net income of $49 million in Q1, a 17% increase and a significant recovery from a $286 million loss in the same quarter last year. Shares soared by 37% in premarket trading.The Q1 net income of $49 million, marking a major shift from last year's $286 million loss. The figure includes a $75 million gain from stock warrants in Root Inc. Without that, there would have been a $26 million loss posted. Still, the best results in the history of the company. Carvana sold 91,878 used vehicles, an increase of 16% year-over-year, signaling robust demand for its online vehicle retail model.Despite strong sales, inventory shortages continue, with vehicles listed for an average of 13 days on its website before purchase.CFO Mark Jenkins noted that the inventory situation is limiting sales volumes and the company plans to increase production to enhance vehicle selection for customers."This quarter validates our belief in the potential of online retail to drive industry-leading profitability and customer experiences," said CEO Ernie Garcia.Hertz is set to offload 30,000 electric vehicles from its fleet due to "substantial depreciation" and escalating maintenance costs, highlighting broader challenges in the EV rental market.Faced with unexpected high maintenance costs and rapid depreciation, the company plans to sell an additional 10,000 EVs beyond its initial projection of 20,000.Hertz reported a $392 million loss for the first quarter, despite a revenue increase of 2%. Depreciation charges significantly contributed to this financial downturn.Originally, Hertz had committed to purchasing 100,000 Teslas post-pandemic to modernize its fleet, but the financial reality of maintaining and operating EVs has forced a strategy reversal.Kat DeLorean, the daughter of the iconic car's creator, faces a trademark challenge in her quest to build a modern DeLorean, despite another company owning her family's nameWhen creator John DeLorean died, Stephen Wynne, a mechanic heavily involved in the DeLorean brand, secured the DeLorean trademarks in the 1990s from John’s disputed widowKat had all but abandoned the vehicle and had a young family and was working as a cybersecurity engineerIn 2020 Ángel Guerra crafted a modern DeLorean model during Covid lockdowns in Spain as a tribute to the iconic DeLorean DMC-12, blending nostalgia with contemporary design elements, the instagram post he made about it blew upHe reached out to Kat, and her wheels started spinning despite having shunned her automotive history as an element that destroyed her childhoodNow, Kat is planning a modern remake of the DeLorean, despite the trademark disputeHosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

There’s nothing like a sunny May 1st. Today we talk about Ford’s new AI driven Dealer training tool. We also review the fastest and slowest moving inventory, as well as the newly launched ability for Roblox users to purchase real life Walmart items in-game. Ford is introducing "Ford University," a cutting-edge AI-powered training platform aimed at enhancing dealership staff effectiveness and customer interactionsThe platform, designed with cinematic storytelling, covers Ford's history and detailed technical breakdowns of vehicle features.Ford University utilizes AI to analyze dealership employees' performance, offering personalized feedback and "missions" that simulate customer interactions.AI feedback focuses on speech nuances, use of filler words, and the accuracy of vehicle descriptions against competitors.Launched in U.S. dealerships, the system will expand content to include technical staff by year's end.Some wheels take off faster than a teenager after curfew. Others linger awkwardly like guests at a party long after the music has stopped. As the latest study from iSeeCars shows, when it comes to clearing out inventory, not all cars are created equal. See the list hereFast Movers —Hybrids lead the charge: The Toyota Highlander Hybrid is the fastest-selling new car at 14.2 days on market.Top used cars: Lexus RX 350h tops the list at 12.3 days on market, followed closely by other Lexus models.Sluggish Sellers —EVs lag behind: New electric vehicles are the slowest in the new car market, taking 70.6 days on average to sell.Used car slow sellers: Maserati and other premium brands dominate the list of slowest-selling used cars.Slow to go: All of the slowest-selling used cars are taking 90 or more days to sell, with the top-ranked Jeep Cherokee taking more than three times the 54-day average, at 169.7 days.Seemingly at the top of their game Walmart and Roblox are first-in to pioneer accessible virtual e-commerce, launching a collaborative platform where users can purchase real-life items and have them shipped to their home through an immersive Roblox experience.The partnership introduces "Walmart Discovered" on Roblox, allowing users to buy physical products from a virtual store that mirrors Walmart's online shopping experience.Users can try virtual versions of products on their avatars before purchasing, with all transactions securely handled via a Walmart API.The initiative targets users 13 and older in the U.S., featuring products designed in collaboration with Roblox creators like Sarabxlla and MD17_RBLX.The pilot, running through May, serves as a test to evaluate the potential for Roblox to facilitate physical goods sales without taking a revenue share during this period.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

As stores across the country are playing ‘The Final Countdown’ as April wraps up, we’re talking about Asbury’s listing strategy for 10 of their stores. We’re also talking about Tesla’s next round of layoffs, as well as one Tiktoker who is less than excited about their interest rate. Show Notes with links:Asbury Automotive Group, ranked fifth among U.S. dealership groups, is eyeing the sale of 10 dealerships after its recent divestiture of the Koons Lexus of Wilmington. Here's the breakdownAsbury listed $242.7 million in assets, including the dealerships, real estate, and various franchise-related assets.The group sold Koons Lexus for $102 million, aligning with Lexus' franchise limit of eight stores per dealer.CEO David Hult highlighted a focus on selective acquisitions and maintaining shareholder value, noting a leverage ratio of 2.6 times earnings. The group currently has 157 storesAsbury has repurchased 240,000 shares for $50 million this quarter, with plans to buy back more.Hult said: "In the current market, there's certainly a lot of stores on the market from an M&A standpoint. But I think we really want to be extremely selective," said Hult during an earnings call.Tesla continues its aggressive cost-cutting strategy, announcing further layoffs that affect senior executives and the entire Supercharger team. This move comes amid broader tech industry layoffs and follows a significant quarterly earnings shortfall.Tesla has laid off more than 10% of its workforce, including high-profile executives and the team responsible for Supercharging infrastructure.The elimination of the entire Supercharger team, led by Rebecca Tinucci, signals a potential pivot in Tesla's approach to EV charging infrastructure despite the adoption of Tesla's NACS plug by other manufacturers.Alongside the layoffs, Tesla sees departures of key personnel like Drew Baglino, VP of Powertrain and Energy Engineering, underlining internal challenges and dissatisfaction.These layoffs coincide with Tesla's request for a substantial shareholder payout, contrasting sharply with the company's financial and operational cutbacks.Blaisey Arnold, a TikTok personality, recently faced the harsh reality of auto loans when she decided to part ways with her Chevy Tahoe due to overwhelming interest payments totaling $50,000.Arnold's loan for the $84,000 Tahoe came with a 10.2% APR from GM Financial, leading to massive interest accrual over the loan's term.With no down payment and negative equity from a traded vehicle, Arnold’s monthly payments of $1,400 barely made a dent in the principal amount.Arnold criticized the dealership for allegedly taking advantage of her lack of financial savvy, a claim that underscores the broader issue of consumer education on auto loans.Quote from Arnold: "I did not go with my husband and as a female I feel they took advantage of me. They knew I really wanted the car and that I was by myself," Arnold shared with The Daily Mail.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

We’re starting out on the last few days of the month with a look at the Top 100 Used Car Dealers in the US. We also take a look at the potential of Tesla’s deal with China’s Baidu, and what it means for Full Self Driving. We’ll also review the latest Experian EV insights report. Following the Top 150 Dealer List, Automotive News has released their list of the Top 100 Used Dealer Groups.The top 100 dealership groups collectively sold 3,215,702 used vehicles in 2023, marking a slight growth of 0.1 percent from the previous year, indicating a stable used vehicle market despite economic fluctuations.Top 10: Lithia Motors Inc., AutoNation Inc., Penske Automotive Group Inc., Group 1 Automotive Inc., Sonic Automotive Inc., Asbury Automotive Group Inc., Hendrick Automotive Group, Morgan Auto Group, Ken Garff Automotive Group, NR Hudson Automotive Group.The top 10 dealerships alone accounted for 51.3 percent of the total sales among the top 100 groups, highlighting the concentration of market power within a small number of players.Acquisitions and expansions were common strategies among the top performers, as dealerships sought to increase their market footprint and capitalize on economies of scale.GOING TO BE AT ASOTU CON: Lithia, AutoNation, Group 1, Walser, Zeigler, Ourisman, Rohrman, McGovern, Fox Motors, #1 Cochran, Pohanka, Germain, DGDG, Carter Myers, Sam Pack.Tesla and China’s largest search engine and map provider, Baidu have sealed a deal enabling Tesla's Full Self-Driving system to operate in China, leveraging Baidu's crucial mapping licenses for navigation on Chinese roads.Baidu will provide Tesla with a mapping license essential for the operation of its Full Self-Driving technology on public roads in China, enhancing Tesla's navigation capabilities with lane-level precision.This partnership not only allows Tesla to legally collect vital road data in China but also clears significant regulatory barriers, setting the stage for FSD's deployment in one of the world's largest automotive markets.It remains unclear whether the data collected through this collaboration will be owned by Tesla or BaiduThe deal coincides with Tesla CEO Elon Musk's recent visit to China, where he met with Premier Li Qiang (Pronounced: Channg)to discuss further approvals needed for FSD's rollout and data transfer protocols.Experian has released their Q4 2023 Electric Vehicles Year in Review and we’ve pulled out some (maybe surprising) insights that help us make a little more sense of the EV landscape. Electric vehicle registrations continue to climb, representing 8% of all new retail individual registrations in 2023, up from 6% in the previous year.The Tesla Model Y and Model 3 lead the pack in EV sales, dominating the market with substantial shares of 36.8% and 19.6% respectively.Top three makes 2022: Tesla, Ford, Chevy  In 2023 Tesla, Chevy, HyundaiHosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

Welcome to the last Saturday of the month! Today, writers Chris Reeves and Kristi Canada join the show to talk about our partnership with Vehicles for Change and how we're giving away a car at ASOTU CON plus auctioning off a custom guitar to benefit the great things that Vehicles for Change do.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

It’s the last Friday of the month as we pay tribute to a Ford leader who broke the mold. We also talk about a hot debate over legacy OEMs flirting with DTC models as well as consumer luxury purchases going on the rise. This morning we pay tribute to Don Petersen, a transformative leader who guided Ford through a critical phase in the 1980s.Petersen, who passed away at 97 on Wednesday was at his home near Detroit in Bloomfield Hills, Mich., his niece Laura Peterson told Automotive News in an email., was celebrated for prioritizing quality and innovation, dramatically boosting Ford's market share and profitability.Under his leadership, Ford introduced influential designs like the aerodynamic Taurus and Mercury Sable, shifting industry standards towards more customer-focused products.He was known for fostering a collaborative workplace, which contrasted sharply with the autocratic styles of previous Ford executives. But at times was also said to have had some passionate outbursts. Petersen also spearheaded strategic acquisitions, notably purchasing a controlling stake in Hertz and increasing Ford's investment in Mazda, which significantly expanded Ford's global footprint and technological capabilities."He insisted on teamwork and excellence in the name of customers and guided Ford through a period of revitalization," stated Ford Motor Co.A recent Automotive News editorial is highliging a hot topic we’ll be discussing with the President’s of NADA and several State ATA’s on the main stage at ASOTU CON. Dealer associations are lobbying against direct sales models for new brands like VW Group’s Scout and Honda’s Afeela, pushing for adherence to traditional franchise systems amidst a slowdown in EV market growth.Tensions rise as dealers threaten to withhold service and parts for brands pursuing direct sales, fearing the impacts on their business model and the established relationships with legacy automakers.The advertisement by state dealer associations in Automotive News underscores a significant industry rift, as they urge legacy automakers to reconsider direct sales strategies that could bypass traditional dealerships."We believe there is a difference between a brand recently born and one seeded, nourished and grown under the protective arm of a legacy automaker," emphasizes the importance of maintaining traditional retail models for established brands.Despite economic inflation, the U.S. luxury goods market has seen a substantial 86% increase in purchase intent from 2021 to 2024, according to YouGov's latest survey.The survey reveals that 26% of respondents are likely to buy luxury items within the next year, a significant rise from 14% three years prior.Notably, 15% of Americans have actually purchased luxury goods over the past year, marking a 9% increase since 2021, with shoes, accessories, and beauty products leading the purchase categories.Shoppers between 35-44 were willing to shell out over $1,000 on their coveted purchases.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

Happy Thursday! Today we cover Ford’s stock price recovers due to hybrid sales, Honda invests $12 BILLION in EV supply chain, and automatic refunds when your next flight gets canceled or delayed.Ford’s Q1 earnings were released yesterday and sparked an overall optimistic tone as well as a stock price bump as they bumped up their full year free cash flow figure. Ford reports a solid quarterly profit driven by strong sales of work trucks, vans, and a 36% increase in hybrid vehicle sales.Despite a downturn in the EV market, Ford's Chief Executive Jim Farley emphasizes affordable EVs as a future growth area, with potential models priced between $25,000 and $30,000.Ford Pro, the division focusing on fleet services and work vehicles, reported exceptional profitability, contributing significantly to the company’s earnings.Ford Blue: $21.8 billion in revenue, EBIT of $905 millionModel e: $100 million in revenue, EBIT loss of $1.32 billionFord Pro: $18 billion in revenue, EBIT of $3.01 billionRegarding the future profitability of EVs Farley said, "We are going to build a sustainably profitable EV business," highlighting lessons learned from pricing strategies that boosted sales of their Mach-E SUV.According to reports mentioned in Automotive News, Honda is set to unveil a significant $11 billion investment plan to establish an integrated EV battery supply chain in Ontario, Canada.This investment includes the construction of an EV battery plant in Alliston and two supplier plants in partnership with South Korea's Posco Future M and Japan's Asahi Kasei.This sets a new high for automotive investment in Canada, trumping the $5B investment by VW, and $7B investment by Sweden based NorthvoltCanadian Prime Minister Justin Trudeau and other top officials will join Honda’s announcement, marking a major expansion of Honda's Canadian operations."This move supercharges our North American electrification efforts," said Jean-Marc Leclerc, Honda Canada President, highlighting the strategic importance of this comprehensive investment.Pretty soon, canceled or significantly delayed flights will mean fast refunds for air travelers as new DOT Regulations Mandate Automatic RefundsAirlines will now automatically refund passengers who don’t accept changes or credits for flight cancellations, significant changes, or delays exceeding three hours for domestic and six hours for international flights.The Department of Transportation's new rules also cover refunds for delayed checked baggage and undelivered paid services like Wi-Fi.These regulations, which roll out within the next 6-12 months, aim to simplify the refund process, ensuring passengers receive prompt and automatic compensation."These measures ensure fairness and transparency in air travel, benefiting consumers significantly," the DOT highlighted in their announcement.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

We’re mid-week and talking about Tesla's strategic shift amid falling profits.. We also cover VinFast's aggressive U.S. dealership expansion and the heartwarming story of a Dealership serving a single mother in South Dakota.Sandwiched between GMs stellar financial results yesterday and Ford’s upcoming earnings later today, Tesla's Q1 earnings were released yesterday and show a 55% decline in net income, falling to $1.1 billion, amid a backdrop of global demand challenges Despite setbacks, Tesla plans to fast-track the introduction of new vehicles, utilizing both current and next-gen platforms, aiming for production on existing lines for efficiency.The company's shift in strategy includes a focus on developing autonomous vehicles and a robotaxi service, anticipated to transform the future of mobility including a new app that is set to be an Uber/Lyft competitorWhen speaking about the much anticipated lower cost Tesla’s Musk said, “In terms of a new product roadmap, there’s been a lot of talk. We’ve updated our future vehicle lineup to accelerate the launch of new models.” Musk said we might see the vehicles in early 2025, if not later this year. He also stressed that new vehicles would be made on existing, functioning production lines.Amidst speculations of the canceled low-cost vehicle project, Tesla remains committed to its autonomous driving ambitions, with plans for a "robotaxi unveil" set for August.Tesla stock was up 11% in after hours trading but is still significantly down this yearOn to another EV maker who is leveraging the dealership model as its path to success, Vietnamese manufacturer, VinFast is rapidly growing its U.S. footprint, announcing 12 new franchised dealerships across several statesVinFast now boasts 18 dealerships across seven states, complementing its direct sales in California with a stronger dealership network including new sites in Florida, Texas, Kentucky, and Connecticut.The Vietnamese automaker looks to enhance its market position, despite initial slow sales, expecting a significant contribution from these dealers in the latter half of the year.With a major factory underway in North Carolina, VinFast plans to meet U.S. production criteria to leverage a $7,500 federal EV incentive for its models like the VF 8 and upcoming VF 9 crossovers.Amid expanding global operations, the company is reporting a 400% increase in global vehicle deliveries compared to the same quarter last year.One South Dakota Dealership, Vern Eide Motors,  restores both hope and a 2008 Chevy Impala for free after its owner, a victim of a repair scam, shared her ordeal publicly.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

This Tuesday we’re talking about why GM is smiling from their robust financial performance in Q1. We also talk about a controversial toggle on Tesla’s website, as well as what companies are ignoring in their surveys. Show Notes with links:General Motors is kicking off 2024 with a robust financial performance, boosting full-year guidance after a stellar first quarter.GM's net income soared by 24% in Q1, reaching $2.98 billion, driven by strong vehicle demand, especially in North America where revenue hit a first-quarter record of $36.1 billion.Adjusted earnings before interest and taxes grew to $3.9 billion, prompting GM to raise its full-year EBIT forecast by $500 million to between $12.5 billion and $14.5 billion.Despite new-vehicle prices expected to drop slightly, GM's pricing remained stable in Q1, supported by sales of small crossovers like the Chevrolet Trax and Buick Envista.Cost-cutting measures, including $300 million in reduced fixed costs from marketing and engineering, are on track to meet GM's $2 billion reduction goal by year-end."Globally, our team is leaning into every opportunity with a focus on profitability to build on our strong start to 2024," said CEO Mary Barra, indicating the company's proactive strategy amid challenges.The Tesla toggle: Elon Musk recently tweeted a Model Y price starting below 30k. This was reflected on their website. The catch is that the price included calculated fuel savings based on an assumption of use. This could be adjusted and toggled off. Could Dealers get away with this? Are they violating the rules?Will they get in trouble? Customer satisfaction surveys are pervasive, a new Business Insider article explores whether they really help businesses, or just annoy customers with constant requests for feedback?Surveys have become a standard practice across industries, aiming to optimize customer experiences for business gains, not necessarily customer benefit.The spending on market research, specifically customer surveys, has ballooned to $80 billion annually, with a significant focus on monitoring and improving customer satisfaction metrics.Despite the intention to gather useful data, the overwhelming number of surveys has led to 'oversurveying', making many people less likely to respond, which paradoxically leads to more surveys being sent out.Companies are now focusing less on the quality of products and more on whether their offerings meet customer expectations; the current emphasis in surveys is on the entire customer experience, not just product quality. "Companies are using surveys to cling to unloyal customers. It’s much cheaper to keep a customer than acquire a new one," explains Brad Anderson of Qualtrics, highlighting the economic motives behind the survey onslaught.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

It’s a fresh week and we’re talking about the UAW’s landmark unionization victory at Volkswagen's Chattanooga plant. We also cover Dealer response and legal threats over new sales models from Scout and Sony Honda Mobility as well as Tesla's swift response to a safety recall with a riveting fix. In a historic win for the UAW, employees at Volkswagen's Chattanooga plant in Tennessee voted decisively to unionize, marking the UAW's first significant success in the South.After two prior attempts, the UAW succeeded with 2,628 votes for and 985 against, setting a new course for worker representation in Southern automotive plants.This victory at Chattanooga, previously the only VW plant globally without union representation, may signal a broader shift in the U.S. auto industry.UAW President Shawn Fain celebrated the win, noting its potential to catalyze further unionization across the region: "Once you see the first domino fall, you're going to see a lot more follow."As Scout and Sony Honda Mobility venture into the U.S. market with plans to potentially bypass traditional dealership networks, dealer associations are gearing up for a possible legal confrontation.State dealer associations are advocating for Scout and Sony Honda Mobility to adhere to the traditional franchised dealer model, citing legal and regulatory concerns with direct sales modelsThe dealer groups have voiced their readiness to challenge these plans legally, emphasizing the advantages of the franchise model in a nationwide advertising campaign which included taking out a full page ad in Automotive NewsGeoffrey Pohanka, hinted that the absence of a clear commitment to using dealerships might suggest a move towards direct sales, stating, "Silence speaks."John Devlin, the 2024 chairman and CEO of the Pennsylvania Automotive Association, expressed strong sentiments about the situation: "After two years of asking and getting nothing, frustration is very high." He also added, "We think this is going down the wrong road. I hope that there's good news at the end of this, but we wanted to proactively get out ahead of it."Tesla has responded swiftly to a significant safety concern with the Cybertruck's accelerator pedal by introducing a rivet-based solution to prevent the pedal pad from slipping off.Tesla temporarily stopped Cybertruck deliveries and issued a recall after discovering that the pedal pad could detach and become lodged, causing the vehicle to accelerate uncontrollably.The repair involves a fast but precise procedure where Tesla technicians drill a hole and install a rivet to secure the pedal pad, ensuring it stays in place.Total materials, less than $1.  Total time, less than  1 minute. The fix, demonstrated at Tesla's "Cyber Takeover" event in California, is touted as a quick "35-second recall fix," though initial setup involves critical measurements and checks.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

Today we're on with Head Writer Chris Reeves talking about how Car Dealers and OEMs are investing in generations. We also have a super secret promo code for ASOTUCON.comHosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

It’s Friday already. Today we’re talking about Tesla's official Cybertruck recall. We also discuss GM's innovative move into hydrogen fuel as a diesel alternative, as well as the high-stakes wealth race in Silicon Valley as Mark Zuckerberg surpasses Elon Musk to become the world's third-richest person. Show Notes with links:They can’t fix this one with an over the air update. As a follow up to our story Monday, nearly 3,900 Cybertrucks from the 2024 model year are being recalled due to a risk that the accelerator pedal may dislodge and become trapped, potentially increasing crash risks.The defect could affect both accelerator and brake pedal torque, posing significant safety concerns, according to the National Highway Traffic Safety Administration.Deliveries of the Cybertruck are now officially delayed as Tesla addresses these issues with the accelerator pedal."Tesla is not aware of any injuries related to this defect," assured the company in its communication with the NHTSA. Tesla plans to notify affected owners in June 2024.It is unclear how the company plans to repair affected vehiclesGM is spearheading a new project to replace diesel engines with hydrogen fuel cells, debuting a medium-duty truck powered by hydrogen for Southern Co. in Georgia.The Chevrolet Silverado 5500 truck will feature GM's Hydrotec fuel cells, offering over 300 miles of range, weighs almost 20k pounds, and has the ability to generate 300 kilowatts—enough to power 250 homes.This initiative is part of the $65 million SuperTruck 3 program by the U.S. Department of Energy, aiming to explore hydrogen fuel's potential in heavy-duty vehicles and establish a microgrid for hydrogen fueling."This is the most exciting transformation I've been part of at GM," shared Mark Dickens, vehicle chief engineer for future fuel cell products, emphasizing the shift from concept to real-world application.Mark Zuckerberg has overtaken Elon Musk to become the world's third-richest person, with a net worth of $175 billion.Meta Platforms' stock has soared by 43% year-to-date, boosting Zuckerberg's wealth by $47.3 billion this year, while Tesla shares have plummeted nearly 40%, causing Musk to lose $55.2 billion.The stark contrast in company performance has significantly shifted their financial standings, with Zuckerberg's wealth heavily tied to Meta Platforms and Musk's spread across multiple ventures.Despite their competitive past, including a proposed but never realized cage match, their fortunes are now diverging sharply due to differing business outcomes.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

Thursday is upon us as we talk about another EV-only carmaker announcing layoffs. We also talk about Ford’s new model year for the F150 Lightning, as well as a potential standard-setter for employee AI training. Show Notes with links:It seems Tesla isn’t the only non-Dealership model EV maker laying off staff as Rivian is making its second round of job cuts this year, impacting about 150 support and back-office roles to align with market demands.This decision follows a 10% reduction in salaried staff earlier, targeting product and commercial EV teams, as the company faces high interest rates and production scaling issues.Rivian aims to achieve gross margin positivity by year-end, despite current economic headwinds and reduced consumer demand for EVs.In an emailed statement, Rivian said, ““We continue to work to right-size the business and ensure alignment to our priorities. This was a difficult decision, but a necessary one to support our goal to be gross margin positive by the end of the year.”Earlier this week, Tesla’s Elon Musk said on Twitter that laying off 10% of their staff was an action that needs to be done every five years or so to align the company for the next stage of growthAs the model year cycle ticks another year forward, Ford is opening online orders for the 2024 model of the F150 Lightning, featuring new tech enhancements and reduced pricing.Following a temporary stop-ship for quality checks Ford has shipments of the 2024 F-150 Lightning from its Rouge Electric Vehicle facilityThe starting The electric pickup starts at just over $54k for its Pro model and has also seen price reductions up to $5,500 on select trims, with the new Flash trim now starting at $67,995 featuring the highest range available at 320 milesEnhanced features include convenience features like a charging display that estimates time to finish, a Vapor Heat Pump System for improved efficiency, and expanded access to Tesla’s Supercharger network.IKEA is potentially setting a new benchmark in employee development with a comprehensive AI literacy initiative aimed at equipping its workforce with essential skills to navigate the evolving AI landscape.IKEA has launched AI literacy training targeting 3,000 co-workers and 500 leaders to foster a deep understanding of artificial intelligence within the organization.The training includes courses like AI Fundamentals and specialized programs on Generative AI and Responsible AI and Algorithmic Training for Ethics.IKEA introduces 'Hej Copilot', an AI tool developed with Microsoft, enhancing productivity by assisting employees with various tasks."Our vision is clear. It’s about enhancing the capabilities of co-workers through technology," states Parag Parekh, chief digital officer at IKEA RetailHosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

It’s a notable Wednesday as a looming UAW vote at the Chattanooga VW plant gets under way. We’re also talking about a new set of “trust principles” regarding autonomous vehicles, as well as a brand collab between Carvana and pro gaming. The voting begins this morning to determine whether or not to unionize the VW plant in Chattanooga.  In a dramatic move yesterday, Southern governors issued cautioning statements directed at the 4300 auto workers at the plant, warning that  voting for UAW union representation could threaten their jobs.Southern governors from Tennessee, Alabama, Georgia, Mississippi, South Carolina, Texas have publicly opposed the unionization, linking it to potential job risks and investment losses.This union drive is part of the UAW's broader strategy to organize nonunion auto factories across the South, affecting nearly 150,000 workers.Volkswagen has expressed neutrality, respecting the workers' right to a democratic vote and ensuring privacy in the voting process.Tennessee Governor Bill Lee said, "We are seeing in the fallout of the Detroit Three strike with those automakers rethinking investments and cutting jobs. Putting businesses in our states in that position is the last thing we want to do."In a call back to 2019, it looks like autonomy may be in the sights of industry experts and culture as yesterday the Autonomous Vehicle Industry Association (AVIA) published their “Trust Principles.”Self-driving cars like those from Cruise and Waymo have contributed to a growing public skepticism, following several troubling incidents including accidents and traffic disruptions.AVIA aims to enhance community relations and educate the public about AVs, planning to establish a national council with law enforcement and first responders to improve emergency situation responses.Recent events underscore the urgency of building trust; a Cruise vehicle in San Francisco was involved in a serious incident last October, raising concerns over safety and transparency.The industry's broader challenge includes distancing itself from systems like Tesla’s Full Self-Driving, which are often confused with fully autonomous technologies.Carvana is collaborating with NRG and Rocket League influencer Musty for a unique giveaway, offering gamers a chance to win a Tesla Model 3, blending the excitement of esports with a high-stakes prize.Musty will personally deliver the Tesla to the winner, enhancing the connection between virtual gaming achievements and tangible rewards.The giveaway follows the successful Carvana | NRG Combine event, which highlighted emerging talent in the esports arena and awarded a $10,000 prize and a content creator contract.Carvana's Ryan Keeton and NRG's Brandon Tortora emphasize their commitment to memorable experiences and further engaging the esports community.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

Today we’re talking about GM’s HQ move after 50 years. We also talk about Carmax’s major reduction in the customer return window, as well as an unintended acceleration issue with the Cybertruck. Show Notes with links:General Motors is relocating its headquarters from the iconic Renaissance Center to the newly constructed Hudson's Detroit skyscraper, heralding a major shift in Detroit's downtown development and GM’s operational focus.GM is planning its move to a 404,000-square-foot office space in the Hudson's Detroit project by 2025.The future of the Renaissance Center, Detroit's iconic complex since the 1970s, is now under review for potential new uses as GM did not announce plans to sell the property. This relocation reaffirms GM’s commitment to Detroit, aligning with the city's broader downtown revitalization efforts led by billionaire Dan Gilbert."Together with Bedrock, the city and the county, we are reimagining the Renaissance Center for its next chapter," says GM CEO Mary Barra.CarMax is reducing the time customers have to return purchased vehicles. Starting May 12, the window for vehicle returns and refunds will be shortened from 30 days to 10 days.CarMax is modifying its Money Back Guarantee to 10 days, a significant reduction from the previous 30-day window.This change will take effect on May 12, but CarMax will honor the 30-day return period for vehicles purchased on or before May 11.The decision to shorten the return period is a response to "experiential headwinds" affecting customers and associates, as noted during CarMax's fourth-quarter earnings call.CarMax CEO Bill Nash said during the company's fourth-quarter earnings call, "A lot of our customers take advantage of it well before the 30 days. You get past the 10, some people are just working the system."Tesla has temporarily stopped deliveries of the Cybertruck due to an unforeseen accelerator problem, causing significant inconvenience for customers awaiting their vehicles.Tesla notified a client, “We have just been informed of an unexpected delay regarding the preparation of your vehicle. We need to cancel your delivery appointment on Sunday and we will reach out again when we’re able to get you back on the schedule. We apologize for the inconvenience and look forward to hosting your Cybertruck delivery soon!”Tesla is pausing Cybertruck deliveries, informing customers of an unexpected delay linked to vehicle preparation issues.A buyer reported on the Cybertruck Owners Club that the halt is due to a recall for an accelerator issue, although Tesla has not confirmed this.A video surfaced on TikTok highlighting a potential safety hazard with the Cybertruck’s accelerator pedal, involving excess lubricant causing the cover to slide and jam.Tesla plans to resume deliveries on April 20, but the ongoing issues may impact future delivery schedules.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

Tax day is exciting enough, but what’s better than starting the second half of the month on a Monday? Today we’re talking about how the remaining Fisker Dealers are feeling as well as Ford and Tesla’s tennis match.Show Notes with links:Despite Fisker ongoing financial troubles and a significant drop in stock price, the few remaining dealers like Fisker Indianapolis and Fisker Albany are staying positive and continue selling the Ocean crossover.Recent price cuts of nearly 40% on the Ocean model have spurred customer interest and sales, with Fisker Indianapolis reporting successful deliveries to out-of-state customers.Remaining Dealers are hopeful for the future, citing the Ocean's affordability and positive customer feedback on the vehicle's performance and design.Val Ranguelov, dealer principal at Fisker Albany in New York said, "As of now, we're still moving cars. Time will tell what happens. I love the car, it's very solid and very well-built. We just hope for the best."Classic Fisker of Atlanta continues to list Ocean inventory online. However, other early partners like Mills Automotive Group and Ourisman Automotive Group are distancing themselves from Fisker, reflecting varied dealer confidence in the brand's future.The OG empire is striking back as Ford introduces a $1,500 "Tesla Competitive Conquest Bonus Cash" rebate specifically targeting Tesla owners for the purchase of an F-150 Lightning or Mustang Mach-E to boost their EV sales.Any owner of a Tesla vehicle from 2008 or newer is eligible for this incentive, without the need to trade in their current vehicle.Ford is offering substantial discounts across various trims of the F-150 Lightning up to $12,500 as part of a broader strategy to enhance its competitiveness in the EV market.An entry-level Mach E starts around $38k with the added Tesla incentive cash"This incentive is available through July 8 for both the 2024 and 2023 model years, as we aim to attract Tesla loyalists and expand our customer baseMeanwhile, Tesla is deploying a dual effort of both slashing subscription prices and global layoffs in an effort to remain competitive as its Full Self-Driving subscription prices in half in the U.S. and Canada to $99 per month. Simultaneously, Tesla has announced layoffs exceeding 10% of its global workforce, impacting potentially 14,000 employees as it aims to eliminate role duplications and prepare for future growth phases. This includes a reduction in production shifts and a strategic pause in some manufacturing locations.Tesla is facing a rare year-over-year sales drop, particularly in China, where local EV makers are expanding rapidly.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

We're only 31 days away from ASOTU CON on this Saturday, and writers Chris Reeves and Kristi Canada join the show to share some More Than Cars Moments.Walser Polar Mazda got to hear from Will Guidara about the ideas of Unreasonable Hospitality and went back to their store and start implementing everything they learned. Shout out to Dayna Kleve for sharing the story with us!Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

We’re rounding the track on Friday as we cover CarMax’s latest bumpy road. We also talk about Ford’s truck wave as well as a massive nine figure trick shot from creators Dude Perfect. Show Notes with links:CarMax is facing significant headwinds amidst high interest rates and fewer cars purchased directly from customers. The company reported a marginal increase in comparable store used-car unit sales of 0.1% for Q4, underperforming against analyst expectations of 0.36% growth.Net income for the quarter fell by 27%, sharply contrasting with analysts’ forecasts of an 8.4% increase, leading to a 13% drop in CarMax shares.High interest rates have deterred buyers, pushing them towards newer and more affordable cars, exacerbated by a supply shortage of newer used cars, which isn't expected to improve until late 2025.CarMax has focused on preserving profitability rather than market share expansion, with CarMax Auto Finance seeing a 19% growth in income due to reduced loan loss provisions.Originally planning to hit the 2M cars per year mark by 2026, the company has now pushed that target out to 2030"Affordability will be the key driver of our future success," noted CarMax executives, as the company revises its vehicle sales targets amidst ongoing economic challenges.Ford has announced it will finally be shipping 144,000 redesigned F-150 and Ranger pickup trucks to North American dealers, following a quality assurance delay.The automaker is also resuming shipments of the F-150 Lightning electric trucks, with price cuts on some variants by up to $5,500.Originally Initiated due to past warranty costs ($4.8 billion in 2023), this cautious approach was intended to avoid electronic issues detected in pre-shipment inspections.These shipments are pivotal for Ford to meet its ambitious 2024 pre-tax profit goal of $10 to $12 billion, reinforcing confidence expressed last monthAnd for the $100 million dollar trick shot, YouTube sensation Dude Perfect is scoring a massive investment to expand their empire into a Texas-sized headquarters and beyond. With plans to transform digital fun into a family-friendly destination, the group is setting up to score big, not just online, but in real-world entertainment, merch, beverages and beyond.The investment will fund a new headquarters in Frisco, Texas, featuring a trick-shot tower, museum, mini-golf, and more, aiming to create a family-friendly entertainment hub.Initiatives include an international tour, a new streaming app, and an ESPN "30 for 30" documentary premiering on April 25.Known for their faith-based mission and philanthropic efforts, Dude Perfect continues to focus on "serving families with the most trusted entertainment on earth."Dude Perfect Member, Cody Cotton said "This partnership will help us transform digital experiences into tangible ones for families," Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

It’s Thursday and we’re going to review the recent Kain Friends and Family event in Lexington, KY. We’re also talking about the continued pricing pressing on car insurance, as well as a revealing look at a teardown of the Tesla CybertruckShow Notes with links:Kyle to give summary of what he observed, learned at Kain Friends and FamilyJust as car buyers breathe a sigh of relief from decreasing vehicle prices, a new hurdle is emerging—skyrocketing insurance rates. Darin Davis's experience epitomizes this shift, as his insurance for a 2024 Cadillac XT4 nearly doubled upon renewal.Car prices drop as pandemic-related supply chain issues resolve, but insurance costs surge due to repair complexities and climate-induced damages.Auto insurance rates have soared by 22.2% over the past year, marking the largest increase since the 1970s, contrasting with the stabilization of vehicle prices.Darin Davis, a 56-year-old from Dallas, felt the sting of rising insurance costs when the rate for his new 2024 Cadillac XT4 nearly doubled at renewal. This unexpected increase dimmed his excitement over the car, making him reconsider his vehicle choice due to the financial strain."It takes the fun out of owning a new car when you’re paying so much money," reflects Davis on the unforeseen hike in his car insurance rate.The Tesla Cybertruck's design continues to both intrigue and baffle, with a new teardown revealing a massive but oddly half-full battery pack. This discovery raises questions about Tesla's engineering choices and the vehicle's efficiency.Sandy Munro's preview of a Tesla Cybertruck teardown unveils a surprisingly empty battery pack, despite its large 123 kWh capacity.The Cybertruck's range has fallen short in tests, with independent evaluations showing only 254 miles, and potentially as low as 200 miles under certain conditions.Speculation arises on whether this design choice aims to reduce weight or reflects Tesla's cost-cutting strategies, with an upcoming bed-mounted range extender expected to add significant range at the expense of cargo space.One lead Cybertruck engineer responded to the findings on X, responding “Looks half full to me.”, yet. Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email

Welcome to Wednesday as we talk about GM’s Cruise staging a comeback. We also talk about the tension around the only active lithium mine in the US, as well as the potential return of the cubicle (yeah, those things). GM's Cruise driverless fleet is steering its way back into action with a human touch. After a high-profile suspension, they're hitting the road in Phoenix with human-driven vehicles for data collection, signaling a cautious return to their autonomous ambitions.Aiming to rebuild trust, the initiative marks a tentative step towards resuming fully autonomous operations in collaboration with cities, after a suspension triggered by safety concerns and regulatory actions following a series of incidents, including a significant accident in San Francisco.Amid ongoing Justice Department and SEC investigations into the handling of a past accident, Cruise emphasizes progress in safety protocols and a commitment to earning back public trust.Despite setbacks, Cruise remains optimistic about the future of autonomous driving, touting its potential to enhance safety and reduce accidents.Nevada's lithium demand is drying up its water sources. As the Silver Peak mine expands and new players enter, the race for this vital battery component is challenging the arid state's limited water reserves.Nevada's Clayton Valley, home to the U.S.'s only active lithium mine, faces growing competition for water amid a lithium mining boom.Local residents and environmental advocates are expressing deep concerns about the mining's impact on water resources, with fears that increased lithium mining could deplete already scarce water supplies in Nevada's arid environment, affecting both communities and ecosystemsWater rights disputes are intensifying as Albemarle claims almost all groundwater, crucial for lithium extraction, leaving little for newcomers.Sustainable water use is questioned, with current aquifer volume estimates outdated, raising concerns about environmental impacts.Direct Lithium Extraction (DLE) technology could offer a less water-intensive solution, but water rights remain a contentious issue.Remember those cubicles? They might just be making a comeback as millennials, once critics of this office staple, are discovering their hidden value. A Business Insider article highlights Sydney Baker, a 27-year-old millennial, who shares how her cubicle became a blend of personal sanctuary and social hub.Baker initially viewed cubicles as outdated, only to find them offering a unique blend of privacy and personalization but now appreciates the cubicle's ability to balance sociability with focus, although maintaining concentration can be challenging amidst the office buzz.Decorating her cubicle transformed it into a personalized and inviting workspace, debunking the myth of dreariness.The shift towards a hybrid work model post-pandemic has highlighted the importance of flexibility and work-life balance, making cubicles a surprisingly fitting choice for the modern worker.Hosts: Paul J Daly and Kyle MountsierGet the Daily Push Back email at https://www.asotu.com/ JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/ Read our most recent email at: https://www.asotu.com/media/push-back-email