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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

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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.
• 
  
• 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.”

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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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Episode #1072: Ferrari eases off the EV pedal, LAZ Parking launches a game-changing 50,000-charger rollout, and TikTok’s AI influencers threaten to upend the creator economy.

Show Notes with links:

• Welcome to the franchise side, Benji Urra! A seasoned dealer since 1985, Benji is entering the franchise world after nearly 40 years in the independent auto business.
  • He acquired Bravo Nissan of Victoria, TX, from Bravo Autos' Raymond Palacios and Alex Flores.

• Even the prancing horse isn’t immune to the EV slowdown. Ferrari is postponing its second electric vehicle—originally planned for 2026—by at least two years, signaling ongoing hesitance in the high-performance luxury EV market.
  • Ferrari’s first EV, a larger, atypical model co-designed by ex-Apple design chief Jony Ive, will debut in October with 2026 deliveries starting at over $500,000; it's seen more as a symbolic milestone than a volume play.
  • Internally, the second EV is viewed as the true strategic launch, with targets of 5,000–6,000 units over five years.
  • That second model has now been delayed twice, with no real demand yet from Ferrari’s core enthusiast base.
  • The delay also gives Ferrari time to refine its proprietary EV tech while competitors like Lamborghini, Porsche, and Maserati similarly reevaluate or scale back their EV timelines.
  • “Real, sustainable demand is non-existent for an electric sports car,” said a source close to the matter.

• In one of the largest EV infrastructure deployments in North America, LAZ Parking is installing 50,000 Level 2 chargers at its facilities—bringing EV access directly into the daily routines of city dwellers and commuters.
  • The rollout spans over 4,000 locations across 43 states and 536 cities, integrating charging into where people live, work, and park.
  • LAZ is partnering with Epic Charging and Autel Energy, with Autel providing the preferred hardware for the project.
  • The initiative avoids the highway model of fast-charging stops, instead embedding EV access into residential and urban life.

• TikTok is stepping deeper into the AI marketing game, unveiling new tools that let brands generate influencer-style videos using synthetic avatars—potentially redefining who gets paid to promote.
  • The Symphony AI ads platform now lets advertisers create virtual avatars that model clothes, demo apps, and showcase products.
  • These avatars mimic human influencers in both look and behavior, offering content at scale without contracts or shoot days.
  • For brands, it means lower costs and faste

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 #1071: In today’s episode, we unpack April’s surprising EV registration drop, spotlight top dealership strategies driving service and parts growth, and break down a fresh consumer sentiment boost that still comes with caution.

• Automotive News’ Top 100 Service and Parts Dealer Groups show that there’s no single path to growing service and parts revenue—but that tailored strategies, tech investments, and a laser focus on training can deliver huge results.
  • Murgado Automotive boosted revenue 45% by empowering service directors and emphasizing speed, transparency, and convenience.
  • Holman’s 48% increase stemmed from employee training, technician retention, and use of myKaarma software across all stores.
  • Kunes Auto Group drove a 33% bump through acquisitions and leveraging DealerFenix to standardize metrics and processes.
  • All three groups focused on increasing customer-pay work, tire sales, and throughput efficiency.
  • “It’s all the little things that add up to the big things later on,” said Murgado CEO Mario Murgado.
  • Top 10 - Autonation, Penske, Lithia, Hendrick, Asbury, Group 1, Sonic, Morgan, Holman, Ourisman
  • Other friends - 13 - McGovern, 27 - Ciocca, 33- RML, 35 - Bergstrom, 44 - Premier Automotive, 47 - Walser, 66 - Sam Pack, 69 - CMA, 74 - Rohrman

• For the first time in over a year, U.S. electric vehicle registrations fell in April. While some brands like Chevrolet saw gains, overall adoption continues to hit a ceiling amid consumer hesitation.
  • EV registrations dropped 4.4% year-over-year to 97,833, marking a 6.6% market share.
  • Tesla saw a 16% decline, with major drops in Model Y and Cybertruck registrations.
  • Chevrolet more than tripled its numbers, led by strong demand for the Equinox and Blazer EVs.
  • S&P’s Tom Libby notes the EV segment is hitting a “demand ceiling” around 5,000 units/month per model.
  • “There’s a lot of influences working against EVs right now,” Libby said, citing charging concerns and wavering government support.

• After half a year of sliding confidence, American consumers are feeling a bit more upbeat. A new report shows a sizable sentiment jump in June—but lingering doubts about the broader economy are hard to ignore.
  • According to the University of Michigan, consumer sentiment rose 15.9% from May to 60.5, the highest level since December 2024.
  • The increase was across age, income, region, and political affiliation, with expectations for both short and long-term business conditions seeing the steepest gains.
  • Analysts credit a perceived easing of tariff pressure and slowing inflation for the positive shift.
  • However, consumer sentiment, opinions on current economic conditions, and consumer expectations for the future are all still down YoY
  • “Despite this month’s notable improvement, consumers remain guarded and conc

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Today on the show, we've got Daniel Govaer joining Paul, Kyle and Chris to recap the Raptor Rally that he helped host. Together with Leif Johnson Ford and Rally Ready Ranch, they brought the high-performance Ford Raptor community together to benefit Central Texas Make-A-Wish.

It went so well that the Make-A-Wish team left before all of the kids and families did, because of how well it was going.

A poignant reminder of the amazing impact that auto can have on life's defining moments.

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 #1069: Trump eyes higher auto tariffs and axes California’s EV rules, Google quietly gains ground with Gen Z shoppers, and an AI-generated NBA Finals ad shows how fast, cheap, and creative the future of advertising can be.

Show Notes with links:

• In a high-energy speech, President Trump proposed raising auto tariffs and celebrated a legislative rollback of California’s EV mandates — a double-down on his strategy to protect domestic auto manufacturing and consumer choice.
  • Trump suggested raising auto tariffs above the current 25% level to encourage automakers to produce more vehicles domestically.
  • He pointed to GM’s $4 billion investment in U.S. plants as a positive result of existing tariff policies.
  • The President signed legislation last week that rolls back California’s zero-emissions vehicle mandate, which would have banned new gas car sales by 2035.
  • Dealer and manufacturer groups applauded the repeal, arguing it protects affordability and nationwide regulatory consistency.
  • “Customers don’t want the government telling them what kind of car to buy,” said John Bozzella, CEO of the Alliance for Automotive Innovation.
  • Eleven states, led by California, have filed a legal challenge against the repeal, calling it an overreach that undermines state-level emissions standards.

• Google is making gains with Gen Z shoppers, chipping away at Amazon’s dominance in product search. New data shows young consumers are increasingly turning to Google — not just for browsing, but even when they know exactly what they want to buy.
  • Morgan Stanley data shows a rise in 16–24-year-olds using Google for product research, both general and specific
  • As of March, 30% of Gen Z shoppers who knew what they wanted still started on Google — up from 21% last fall.
  • Meanwhile, Amazon’s share dropped from 41% to 34% over the same period.
  • Analysts suggest Google's generative AI tools, like AI Overviews and Google Lens, may be fueling the shift.
  • “The volume of commercial queries on Google Search has increased with the launch of AI Overviews,” said Google’s Chief Business Officer Philipp Schindler.

• An AI-generated ad made in just two days aired during the NBA Finals, showing how creators can now move faster and cheaper than ever before. Using Google's Veo 3 and a lean workflow, one filmmaker delivered a national commercial at a fraction of traditional production costs.
  • AI filmmaker PJ Accetturo produced a 30-second TV spot for betting platform Kalshi in just two days using Veo 3 and Gemini.
  • His process involved AI-assisted scripting, iterative prompt generation, and rapid video output, yielding 15 usable clips from 300–400 generations.
  • The entire production cost came in at roughly $2,000 — a 95% reduction from traditional ad budgets.
  • Editing was done with tools like CapCut and Premiere, allowing f

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Episode #1068: Congress considers sweeping reforms to EV and emissions incentives, while Toyota tightens its corporate family ties with a bold $33B buyout—cementing Akio Toyoda's hold at the top. Plus, Lowe’s gets into the creator game with Mr. Beast and other social stars.

Show Notes with links:

• Congress is fast-tracking a comprehensive budget bill before a self-imposed July 4 deadline, with proposed changes to fuel economy standards, EV tax credits, and even regulations on artificial intelligence.
  • The Senate Commerce Committee proposes eliminating fines for automakers that fail to meet CAFE fuel economy standards.
  • The House version of the bill would terminate the $7,500 new EV credit and other clean vehicle benefits by the end of 2025.
  • A new tax deduction for up to $10K in auto loan interest could be introduced, applying only to U.S.-assembled vehicles and excluding commercial fleets.
  • Proposed limits on AI regulation would block state enforcement for a decade, with critics warning this could endanger public oversight and safety.

• Toyota shareholders have re-elected Akio Toyoda as chairman, reinforcing support for the automaker’s leadership even as a proposed $33 billion buyout of Toyota Industries—its original parent company—faces backlash from global investors.
  • Toyota Industries, founded in 1926, originally birthed Toyota Motor Company and now focuses on manufacturing forklifts and key automotive components.
  • Toyota Motor plans to fully acquire Toyota Industries in a ¥4.7 trillion deal that includes Akio Toyoda investing ¥1 billion of personal funds.
  • Toyoda, the founder’s grandson, was not opposed as chairman by proxy advisers this year for the first time since 2021.
  • He is estimated to receive at least 96% of the vote—up from last year's 72%, his lowest ever.
  • “There are many ways to achieve growth, but unity under shared values has always been Toyota’s strength,” Toyoda said earlier this year

• Lowe’s is breaking out of the hardware aisle and into the influencer economy with its new Creator Network, headlined by none other than YouTube megastar MrBeast.
  • The network kicked off with over 17,000 beta participants and includes big names like DadSocial and Chris Loves Julia.
  • Creators can earn commissions, access training, and build custom storefronts linking directly to Lowes.com.
  • MrBeast will showcase his favorite tools and DIY picks via a curated storefront featuring obstacle course kits and backyard builds.
  • Lowe’s red vests are also helping construct “BeastCity” for season two of MrBeast’s Beast Games on Amazon Prime.
  • “We wanted to go even bigger and over-the-top... and we found the perfect partner to help us achieve that goal,” said Jeff Housenbold, CEO of MrBeast’s brand team.

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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