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Episode #1210: President Trump moves to unwind fuel-economy rules, hybrids surge while EV sales stumble across major brands, and OpenAI hits “code red” as the AI race heats up.

Show Notes with links:

• The Trump administration is preparing to undo Biden-era fuel economy rules, arguing the standards have inflated new-car prices and forced unwanted EV adoption.
  • Proposed rules expected to significantly soften the Biden-era 2031 target of ~50 mpg.
  • Detroit automaker execs, including Stellantis CEO Antonio Filosa, will attend Wednesday’s announcement.
  • Trump frames the rollback as necessary to reduce vehicle prices, despite economists noting price drops wouldn’t be immediate.
• Trump said he’s “bringing back the automobile business,” predicting the industry will be “bigger than we’ve ever been.”
• He noted he likes EVs and believes hybrids “are working really well,” but defended ending what he called the “insane electric vehicle mandate” to ensure buyers “have a choice.”
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• November delivered a clear message from American shoppers: hybrids are in, EVs… not so much. Across Toyota, Ford, Honda, Hyundai and Kia, strong hybrid gains couldn’t offset steep EV drop-offs after the loss of federal tax credits—shaking up sales trends as dealers prep for year-end pushes.
  • Toyota sales rose 2.7%, powered by light trucks, but EV volume cratered; electrified sales (mostly hybrids) still made up 44% of all deliveries.
  • Ford deliveries dipped 0.7% as F-150 Lightning sales fell 72% and Mustang Mach-E dropped 49%, while hybrids climbed 14%.
  • Honda sales slid 15% on semiconductor shortages; EVs collapsed—Prologue down 87% and ZDX down 98%.
  • Hyundai-Kia stayed mixed: Hyundai down 2.3% as EV demand tanked again, Kia up 2.7% on strong hybrids and core crossovers.
  • “With more tariffed products replacing existing nontariffed inventory, prices are drifting higher, leading to slower sales… and this may last through the remainder of the year and into next year,” said Cox Automotive’s Charlie Chesbrough.

• OpenAI is hitting the panic button—literally—declaring a “code red” to overhaul ChatGPT’s quality as Google’s Gemini surge and Anthropic’s business traction close the gap. With massive data-center spending, user expectations rising, and now early signs of ads coming to ChatGPT, the pressure is officially on.
  • Sam Altman told staff OpenAI is pausing other projects to focus entirely on ChatGPT’s speed, reliability, personalization, and question-handling, including starting a daily call for those responsible for improving ChatGPT.
  • Competitor pressure is mounting: Google’s latest Gemini model beat OpenAI on

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 #1209: Today, we remember and honor Tim Kintz for the massive impact he’s had on the automotive industry.

Plus, we welcome in John Bozella, President and CEO for the Alliance for Automotive Innovation as we get set to cover the The Merge 2025 live from the National Press Club in Washington DC.

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/

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Episode #1208: Today we’re joined by guest host Todd Caputo and break down why car buyers are finally pushing back on pricing and how BMW and Audi are muscling into the booming off-road segment.

Show Notes with links:

• American car buyers are finally tapping the brakes. After years of paying whatever it took to get into a new car, stretched consumers are hitting affordability ceilings and forcing both dealers and OEMs to rethink what demand really looks like heading into 2025.
  • Shoppers are shifting downmarket—buying used, taking longer loans, delaying purchases, and gravitating toward lower-priced models like the Chevy Trax.
  • Industry projections for 2025–26 have softened as tariffs, inflation, and tighter labor markets cool big-ticket spending.
  • Rising days’ supply is prompting deeper discounting while lower-income borrowers fall behind on payments and overall vehicle spending drops YoY.
  • Retailers report weaker new-vehicle margins, though service traffic is climbing as more owners try to stretch aging vehicles.
  • “People are asking, ‘How can I afford this?’” said dealer Robert Peltier. “There are people who are in debt and living paycheck to paycheck.”

• The all-terrain SUV segment is heating up fast as BMW and Audi prepare to challenge icons like Wrangler, Bronco, G-Wagen, and Defender—tapping into a growing niche that’s suddenly not niche at all.
  • The off-road segment is booming: nine core models totaled 371,495 sales through Q3 2025, on pace for a post-pandemic record. Wrangler and Bronco remain the kings.
  • Audi will build its first true off-roader on the upcoming Scout Terra/Traveler platform in South Carolina, offering both full EV and range-extender options.
  • BMW’s G74 aims straight at the G-Wagen and Defender, built on the X5 platform in Greer, SC, with U.S. production helping dodge tariff pressure.
  • Analysts say styling—not specs—will make or break these newcomers; anything too close to G-Wagen territory risks immediate backlash.
  • “Adding a true off-road-capable SUV will attract buyers… but whether that investment pays off is the challenge,” said S&P Global Mobility’s Sam Fiorani Bernard.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

Get the Daily Push Back email at https://www.asotu.com/

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