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Episode #1075: Today we’re talking CarMax’s record-setting quarter, Congress clashing over EV tax credits, and Honda’s surprising success in rocket science. Yep, you read that right—Honda landed a rocket.

Show Notes with links:

• CarMax's latest quarterly results are in—and they're cruising past analyst expectations with strong used vehicle sales, revenue growth, and record-breaking profit per unit.
  • Q1 net income jumped 38% to $210.4 million, while revenue rose to $7.5 billion, up 6.1% year-over-year.
  • Used retail vehicle sales hit 230,210 units, a 9% increase and gross profit per unit hit a record $2,407.
  • Same-store sales were up 8.1%, marking the fourth consecutive positive quarter.
  • “These results highlight the strength of our earnings growth model… and our sharp focus on execution.” — CarMax CEO Bill Nash

• President Trump’s proposed budget is taking aim at federal EV tax credits, with House and Senate Republicans offering two versions of how—and how fast—they should end. The result could drastically shift EV affordability and consumer interest.
  • The House plan ends credits in 2026 for smaller brands but cuts off top sellers like Tesla and GM this year.
  • Automakers under the 200,000-vehicle cap—like Rivian, Honda, and Lucid—would still benefit temporarily.
  • The Senate version is more aggressive, ending all credits within 180 days and leasing perks immediately.
  • EV leaders warn of market disruption; some predict a sales dip once credits vanish.
  • “They’re really trying to put a stake in the heart of EV subsidies,” said Mike Murphy, CEO of the American EV Jobs Alliance.

• In a move beyond automobiles, Honda has successfully launched and landed a reusable rocket as part of its R&D efforts to enter the space industry and support future satellite demand.
  • The rocket hit 890 feet before landing within 14in of its target at a Japan test site.
  • Honda leveraged tech from its automated driving systems for flight and landing.
  • The launch took place in Taiki Town, a growing hub for aerospace development in Japan.
  • The 21-foot, 2,800-pound rocket flew for just under a minute on retractable legs.
  • “Honda will continue making progress... with a technology development goal of realizing a suborbital launch by 2029,” the company stated

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 #1074: We’re diving into CDK’s post-attack transformation, Waymo’s bold NYC ambitions, and China’s booming AI-driven live commerce, where digital humans are outselling their creators.

Show Notes with links:

• A year after cyberattacks rocked the industry and CDK Global, the focus has shifted from crisis response to long-term resilience — though not all lessons stuck.
  • Two cyberattacks forced CDK’s DMS offline for two weeks, disrupting operations at 15,000 dealerships and costing over $1 billion in sales.
  • Many groups invested heavily in cybersecurity and revised disaster recovery plans as a result, with leaders like Judy Serra and Joe Shaker emphasizing staff training and consultant support as critical steps forward.
  • Helion’s Erik Nachbahr noted some dealers quickly reverted to old habits, citing a recent DMS switch that went live without basic protections like multifactor authentication — a move he called unacceptable.
  • CEO Brian MacDonald says CDK is now “stronger than ever,” with deeper investments in security, R&D, and customer experience, saying “Over the past year, we’ve also seen record customer renewals.”
  • Joe Shaker of Shaker Auto Group and TruVideo said, “It could happen to anyone. My feelings were that after going through what they’ve gone through and after looking at every nook and cranny of their business for security that [CDK] may be the most secure.”

• Waymo is preparing to re-enter New York City to map and test its autonomous vehicles — with human drivers — as it eyes a major expansion into one of the most complex and coveted markets in the U.S.
  • Waymo is returning to NYC for the first time since 2021 to resume mapping and testing, though humans will remain behind the wheel due to state law.
  • The company is lobbying for legal changes and applying for a permit to operate in Manhattan with safety specialists in the driver seat.
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• In a groundbreaking move, Baidu aired a 6-hour shopping livestream led entirely by AI-generated digital humans modeled after popular host Luo Yonghao — and it crushed human-led benchmarks.
  • The broadcast introduced 133 products with AI versions of Luo and a co-host responding to viewer comments in real time.
  • The digital duo generated $7.6 million in sales, outperforming Luo’s real past performance in just 26 minutes.
  • China's live commerce market hit $695 billion in 2023, and Baidu now counts over 100,000 active digital human hosts, with the company saying digital humans can cut broadcast costs by 80% and boost sales by 62%.
  • “To be honest, I was really shocked by the effectiveness of this digital human,” Luo said post-show, calling it “reality.”

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 #1073: Six EVs crack the top 10 of Cars.com's American-Made Index, Tesla pauses Cybertruck and Model Y production, and the U.S. Senate gives crypto a win with new stablecoin regulations, clearing the path for mainstream adoption.

• Electric vehicles are leading the charge in U.S. manufacturing impact, as revealed by Cars.com’s 2025 American-Made Index. For the first time, EVs make up the majority of the top 10, signaling how deeply electrification is taking root on American soil—even as OEMs recalibrate their long-term EV strategies.
  • The top 10 Tesla Model 3, Model Y, Model S, and Model X, Jeep Gladiator, Kia EV6, Honda Ridgeline, Honda Odyssey, Honda Passport, VW ID.4.
  • The index ranks vehicles based on five key factors: percentage of U.S. and Canadian parts, final assembly location, country of origin for engines and transmissions, and the size of the automaker’s U.S. manufacturing workforce
• Lead researcher Patrick Masterson said, “Buying American-made often means looking beyond traditional nameplates. You don’t always know what’s built in your backyard unless someone connects the dots.”

• Tesla is halting its Cybertruck and Model Y production lines at the Austin Gigafactory during the July 4 week, timing the pause with its much-anticipated robotaxi debut in the same city.
  • The one-week shutdown, starting June 30, will allow for line maintenance and voluntary worker training.
  • This marks at least the third production pause in a year for Austin, following previous stoppages in May and December.
  • Tesla says the pause will help ramp up output, though it hasn’t specified which lines will see gains.
  • In parallel, Tesla is preparing to launch its first robotaxi rides using Model Ys, with Elon Musk saying “We are being super paranoid about safety, so the [June 22 launch] date could shift,”
  • Musk added that by June 28, the vehicles would be capable of driving themselves from the factory directly to a customer's home.

• The U.S. Senate has approved a bill creating the first federal regulatory framework for stablecoins, cryptocurrencies designed to maintain a fixed value—typically 1:1 to the U.S. dollar. This marks a significant step forward for digital asset adoption and oversight.
  • The GENIUS Act passed with bipartisan support, 68–30, and now moves to the House for final approval before it can be signed into law.
  • The bill would require stablecoins to be fully backed by liquid assets like U.S. dollars and short-term Treasuries, with monthly public reserve disclosures.

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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JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/