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Episode #1247: Canada slashes EV tariffs in a controversial China deal, OpenAI kicks off its ad-supported ChatGPT Go plan, and Recurrent CEO Scott Case calls out the real EV story: a booming used market dealers can’t afford to miss.

Show Notes with links:

• In a surprise move, Canada struck a deal with China to allow 49,000 Chinese-made EVs into the country annually at a dramatically lower tariff—down from 106% to just 6.1%—in exchange for agricultural trade concessions. The move has stirred both optimism and outrage across the automotive industry.
  • The deal drew sharp criticism from Unifor and industry leaders, who say it rewards unfair labor practices.
  • Critics say it could hurt Canadian auto jobs and complicate USMCA negotiations with the U.S.
  • One of the qualifications is that the vehicles be priced around $30k CAD (25K USD)
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• Don’t call it a slow down says , Scott Case, CEO of Recurrent in is Automotive News Op Ed. Despite media headlines suggesting electric vehicle demand is cooling, Case says the narrative is missing the real story and it is that used EVs are booming as he urges dealers to ignore short-term noise and prepare for a long-term shift.
  • Case argues that demand isn’t falling, it’s shifting to lower-cost used EVs as new prices soar.
  • The used EV market is set to grow 5x, driven by a wave of off-lease EVs hitting the market in 2026.
  • “Winning in the EV market means selling $30K vehicles with 300-mile range and Tesla charging access. In 2026, that means used EVs.” —Scott Case, Recurrent CEO

• OpenAI just opened the ad door inside ChatGPT as it launches its lowest-cost plan worldwide. That’s right, ads are coming to the AI assistant for free and Go users in the U.S., marking a major monetization pivot ahead of a planned IPO.
  • ChatGPT Go is now available globally at $8/month and includes GPT‑5.2 Instant access.
  • Ads will appear as “Sponsored Recommendations” under responses for Go and free users.
  • Sam Altman once called ads a “last resort,” but now says he’s okay with them “if it doesn’t violate user trust.”
• “Ads support our commitment to making AI accessible… by helping us keep ChatGPT available at free and affordable price points.” —OpenAI blog

This episode of the Automotive State of the Union is brought to you by Amazon Autos: Meet customers where they shop: reach high-intent buyers shopping for their next car on the #1 online retailer.

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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Today, Head Writer Chris Reeves joins the show to share how the Super Chevy Dealers of Baton Rouge and Our Lady of the Lake came together to honor Vietnam veteran and former police officer Michael King with a new 2026 Chevy Equinox RS—proof that when a community shows up, the impact goes far beyond the driveway.

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 #1245: Honda unveils a brand-wide logo reboot, Tesla brings its massive Texas lithium refinery online, and U.S. workers pump the brakes on job-hopping—opting for stability and side hustles instead.

Show Notes with links:

• Honda is officially going all-in on its new, wider “H” badge. What started as an EV-only identifier will now represent Honda’s entire automotive business—from gas and hybrid vehicles to dealerships and motorsports—blending retro roots with a future-facing look.
  • Honda’s new badge, inspired by its 1960s-era logo, is wider, frameless, and intentionally more modern.
  • Originally reserved for the upcoming 0 Series EVs, the logo will now appear across all Honda vehicles, including ICE and hybrids.
  • The brand says the move unifies Honda’s identity as electrification and internal combustion will coexist longer than once expected.
  • Unlike many “flattened” rebrands, this logo leans on heritage while still fitting next-gen EV design language.
  • Honda says the badge will “represent [the] Honda automobile business as a whole, including… dealership locations, communication initiatives, and automobile motorsports activities.”

• Tesla just flipped the switch on its Texas lithium refinery, bringing battery-grade lithium hydroxide production fully online. The company says it’s the first refinery of its kind in North America—and a big step toward controlling more of its EV supply chain at home.
  • The Corpus Christi-area facility converts raw spodumene ore directly into battery-grade lithium hydroxide, skipping common intermediate steps.
  • Tesla says the simplified process is cheaper, faster, and more sustainable than traditional lithium refining methods.
  • From groundbreaking in 2023 to operation in 2026, Tesla fast-tracked the project by running design, studies, and construction in parallel.
  • Elon Musk called it “the largest lithium refinery in America” and added that it’s “the most advanced lithium refinery in the world” and “very clean.”

• After years of churn, the job market has slammed the brakes. New data shows workers are far less likely to job hunt in 2026, choosing stability and side hustles instead as hiring slows and confidence drops across the U.S. workforce.
  • Only 43% of workers plan to job search in 2026, down sharply from 93% last year, according to Monster.
  • Economists are calling 2025 a “hiring recession,” with the weakest job gains outside a recession since 2003.
  • About 75% of employees say they plan to stay put until at least 2027, a trend known as “job hugging.”
  • Instead of switching jobs, nearly two-thirds of workers are turning to side hustles or extra income streams.
  • Monster’s Vicki Salemi says workers aren’t disengaged, just cautious: “They’re basically playing the

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 #1244: Today we're talking about Tesla's FSD flip to subscription-only, the continued softening of auto credit conditions, and a loyalty report that says your customers are expecting way more.

Show Notes with links:

• The Dealertrack Credit Availability Index closed out December at 99.6—its highest reading of 2025 and the strongest level since October 2022. It marks a continued return to pre-pandemic credit conditions, capping off a yearlong trend of easing lending standards.
  • Approval rates rose to 73.7%, up 90 basis points from November and 80 bps from December 2024.
  • Average contract rates dropped from 10.5% to 10.3%, while yield spreads also narrowed—making pricing more attractive for buyers.
  • Subprime lending edged down from 14.3% to 14.1% month-over-month, though still up from 11.8% a year ago.
  • Loans over 72 months grew in share, as consumers stretch payments to keep monthly costs manageable.
  • Captive lenders led the loosening, but banks, credit unions, and finance companies all showed increased flexibility.

• Starting February 14, Tesla will stop offering its Full Self-Driving (FSD) system as a one-time purchase, moving exclusively to a monthly subscription model, according to CEO Elon Musk.
  • FSD, which still requires active driver supervision, currently costs $8,000 or $99/month.
  • Tesla hasn’t said how many users pay for FSD, but Musk once admitted he was "kind of glad" not many bought the lifetime option.
  • The shift may be tied to Musk’s compensation package, which includes hitting 10 million active FSD subscriptions.
  • California regulators are still considering suspending Tesla’s sales license for 30 days over alleged misleading marketing of FSD capabilities.
  • Tesla has not disclosed how many of its customers have bought or are paying monthly subscriptions for FSD.

• In its 28th annual Customer Loyalty Engagement Index, Brand Keys found that consumer expectations jumped a record-breaking 32% year-over-year — a shift that’s shaking up brand rankings across industries and putting serious pressure on retailers to evolve.
  • Hyundai once again ranked highest among automotive brands for meeting modern consumer expectations — its 17th year holding that title.
  • Nearly 40% of product and service categories saw new leaders emerge, signaling a wave of disruption driven by more demanding buyers.
  • Loyalty continues to deliver ROI: a 5% improvement can boost lifetime customer profits by up to 88%, while a 2% lift can cut marketing costs by nearly 30%.
  • Amazon, Whole Foods, Shell, Ben & Jerry’s, and Dollar General were also among the top performers in their categories.
  • “The bottom line: loyalty moves markets.” – Robert Passikoff, President of Brand Keys

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 #1243: We’re talking about a viral moment at Ford’s Dearborn plant, a smart strategy for turning old trade-ins into profit, and surprising insights into the real buying power of Gen Alpha.

Show Notes with links:

• President Donald Trump made a high-profile visit to Ford’s Dearborn Truck Plant, touring the F-150 line with company leadership, previewing a patriotic new pickup, and filming a CBS interview on the factory floor.
  • Trump was guided by CEO Jim Farley and Executive Chair Bill Ford and saw an F-350 wrapped in an American flag; Ford plans to release it midyear for America’s 250th anniversary.
  • The plant was described by Farley as “the most important automotive plant in the United States.”
  • Trump praised Ford’s workforce and the sound of the assembly line.
  • The visit ended on a viral note when Trump flipped off a heckling worker during his exit.
  • A GoFundMe has been started for the employee which has raised over 25k from almost 1000 donors.

• Faced with affordability challenges and aging trade-ins, more dealers are implementing targeted reconditioning strategies to retail vehicles that would’ve gone to auction just a few years ago.
  • The approach includes dedicated checklists that focus on safety and mechanical soundness while allowing minor cosmetic flaws.
  • Holman adopted this method in June, leading to faster turnaround times and stronger profit margins.
  • Dealers like Premier Automotive and Ganley Automotive are also leaning into older, higher-mileage units to meet demand.
  • The goal is to invest intelligently—fix what matters, disclose the rest, and keep prices approachable.
  • “You have to intelligently dial in the reinvestment,” said Chris Morgan of Holman. “It’s not easy—but it works.”

• A new study shows that kids born after 2010 are already shaping nearly half of family spending decisions—despite most of them not even being old enough to drive.
  • Gen Alpha influences $255B in U.S. spending across food, fashion, and leisure.
  • Their buying influence is powered by peer and family input—not influencers or ads.
  • Visual appeal and style are top decision factors; sustainability ranks low at just 16%.
  • Many Gen Alpha kids are already earning money through informal or part-time jobs.
  • “Our findings show a generation skeptical of media messages and steadfast in their opinions,” said Teneo’s Gee Lefevre.

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 #1242: Today we have a very special edition of The Automotive State of the Union.

It’s All Things CES with Steve Greenfield. After walking many miles on the show floor, Steve will be sharing all the insights, surprises, and automotive tech buzz from the biggest stage in innovation.

Sign up for Steve’s weekly newsletter at automotiveventures.com

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 #1241: CarMax leans on price cuts and marketing to spark sales, Toyota takes its iconic Hilux electric in Europe, and Walmart keeps scaling drone delivery as demand grows.

CarMax is shifting back to fundamentals as sales and earnings continue to slide. The company will cut prices, trim costs, and increase marketing to regain momentum heading into 2026.

• • Q3 results saw unit sales down 8% and earnings down 50% year-over-year.
  • CarMax will use targeted price cuts to spark demand, not blanket reductions.
  • The company is lowering margins while boosting marketing to drive traffic.
  • SG&A will be cut by $150M annually despite increased ad spend.
  • “Our average selling prices have drifted upward and appear to be less attractive to customers,” said Interim CEO David McCreight.

Toyota just electrified one of its most important global trucks. The Hilux made its first European appearance as a full EV, signaling Toyota’s pickup electrification push—just not for North American buyers.

• Toyota debuted the Hilux BEV at the Brussels Motor Show, and uses a 59.2 kWh battery, offering up to 160 miles WLTP range, or 236 miles in city driving.
• With AWD and 473 Nm of torque, it can tow 1.6 tons and haul over 1,500 lbs, keeping its work-truck credibility.
• Europe gets the Hilux BEV in April, but the truck isn’t sold in the U.S.—and Toyota isn’t signaling that will change.

Alphabet-owned Wing is dramatically expanding its on-demand drone partnership with Walmart, signaling that flying groceries and meds are becoming a real part of everyday commerce.

• Wing will expand drone delivery to 150 more Walmart stores, building on pilots in Dallas-Fort Worth and Atlanta.
• Wing’s top 25% of customers order three times per week, mostly groceries like eggs, ground beef, produce, and snacks.
• Once complete, Wing will operate from 270+ Walmart locations, reaching roughly 10% of the U.S. population.
• Walmart remains Wing’s primary commercial partner, even as the company continues testing larger drones capable of carrying five-pound payloads.
• Wing’s new chief business officer Heather Rivera: “Volume is definitely powering our flywheel.”

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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Today, Paul Kyle, and Chris Reeves are together again after a bunch of guest hosts and holiday episodes. They argue over whose New Year's Eve was more boring and whether or not you should actually prepare for tornadoes. But most importantly, we talk about how the Ziegler Auto Group gathered over 50,000 cans of food to give to people who needed them most.

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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