BYD’s Strategic Move, Advanced EV Tax Credits, Returning Vision Pro

Paul J Daly: 0:00

Are they February 15. I decided to wear sunglasses on the inside with the hopes that the sun will come out someday and Syracuse. Today we're talking about BYD advanced Evie, tax credits, and people returning their vision pro headsets.

‍Kyle Mountsier: 0:32

People really want to know who is in. The sun is never coming out

Paul J Daly: 0:36

right now. Kyle's asking himself. Is he really going to keep these on for the whole show? The answer's no. The answer's no.

Kyle Mountsier: 0:43

That would be fully ridiculous. You know, I wouldn't put it best, you know,

Paul J Daly: 0:47

well, I was waiting for you to flip on the pair of white sunglasses that you always have handy. You know,

Kyle Mountsier: 0:51

I don't know where they are. They're,

Paul J Daly: 0:53

I think they're probably in your car because you need them.

Kyle Mountsier: 0:56

That is true. Yes, we do need them here. It's already Sunny. Like we just get sun now. It's like, oh, yeah, we're halfway through February, bringing the sun. We're

Paul J Daly: 1:07

being done. Didn't Florida earlier this week. And just like it always, never ceases to amaze me like all the rest of the world as sad. It's so troubling to me it is that I came home and it was like Sunday the whole way. And then all of a sudden, it was like reading the book. And like it got dark cross a line. It got dark in the plane. I was like, We're back. We're close to home now. Oh, man. Well, I don't look at nine days till ASOTU CON when it will be sunny everywhere. It'll be sunny everywhere will be sunny. I then may what a great time to have an event. It's gonna be beautiful, magical North Annapolis south of Baltimore. Look, mark your calendar 14th through 17th main days, 15th and 16th. A soda con is coming in. You and I were working on schedules and panels yesterday and we got excited. We

Kyle Mountsier: 1:56

are really excited. We'll drop them over the next couple of weeks. We got some content coming at you. But we pitch tank coming back hot. Two different pitch rooms and just like battling rooms, I'm going to try and be louder than the other room. That's

Paul J Daly: 2:11

why we're putting an open room in between the two rooms. Literally, there's an open field. Well, I mean, like look, most dealers, when they go to event they want to hear they like don't even know who does what right. They see name and they're like, what did they do? What did they do? What do they do? So three minute pitches, right? So if you're dealing, you're gonna get through him go, you're gonna get to know what everybody does. And then you can set up meetings with the people that are interested, you don't have to worry about getting stuck in like a 25 minute conversation you don't want to be in, right? Because truth is when you're stuck in a 25 minute conversation you don't want to be in Guess who loses everybody, everybody, including the person giving the 25 minute conversation. We have a DeSoto edge webinar next week, February 21. Mark your calendar upstart our friends at upstart are going to be talking about bridging the divide. Here's the best part they're going to be sharing the results of our 100 dealer survey on questions like online store your biggest challenges with financing right now and the solutions and what's the outlook on sales for 2020 For every dealer wants to hear what other dealers are thinking and our friends at upstart aggregated 100 opinions. So we'll take that. I like it. Speaking of aggregating things. The Chinese know how to aggregate EVs. China's electric vehicle giant BYD is reportedly making a very strategic move by setting up a new factory in Mexico. Yes, folks, that is considered North America aiming to turn into a hub for the US market and worrying quite a few people in the industry there. Right now conducting a feasibility study negotiating with Mexican officials. What does that negotiation look like? It's gotta be intense.

Kyle Mountsier: 3:49

tacos and docentes.

Paul J Daly: 3:51

Not you know, the most part of the point these global expansion strategy. Last month, Elon Musk said the Chinese automakers will demolish global rival rivals without trade barriers. And on Wednesday, Martin Xiaoxiao, CEO of Ford's Evie unit, model II spoke about the colossal and quote that's a quote, colossal strategic threat of Chinese Evie saying, quote, they are ahead of us in the technology. We look at that and say that's coming here eventually. So we better get fit now. And we better get going on EVs or we don't have a future as a company that is strong. Like where's the bomb blowing up trigger? Like no one? We don't need that one. Yeah,

Kyle Mountsier: 4:37

I mean, well, one smart. I mean, there's a lot of manufacturers that have moved into Mexico over the last five to seven years and you know, manufacturing costs are a little bit cheaper. You get the benefit of having the North American credits, you get lower, you know, import export fees, you know, even just like shipping costs are lower. So it's a smart move. Obviously, BYD economy EV, they're looking to keep those costs low looking to keep things close to where the consumer is. And I, yeah, this is, I don't have anything else to say other than marine Joshua.

Paul J Daly: 5:13

He's got it right. Well, he also said, Ford is expecting all Chinese automakers that who are building factories in Mexico to still get about the 27% US tariff on EVs made in China. So they're saying like, hey, even if they make them in Mexico, they're going to be tariffs coming into the US 27%.

Kyle Mountsier: 5:33

So yeah, well, that's where Elon Musk is like, everybody's kind of lobbying to make sure that everything stays in line because they want to keep the money flowing.

Paul J Daly: 5:41

Speaking of keeping the money flowing. to the government. Well, actually, the US government has dished out so far $135 million in advanced easy tax rebates since the start of the year. It's a big shift in tax credit processing prior to 2024. Right, EB credits were claimed, I'm kind of in arrears. They were claimed the following year. But now starting January 1, they can be transferred to dealers at the sale time, as we know, they reported over 25,000 sale Time reports with 78%, involving advanced payment requests totaling about $135 million paid to the dealer.

Kyle Mountsier: 6:22

Taking advantage of those those tax credits on the hood, I guess,

Paul J Daly: 6:26

you were given, we were throwing a little shade saying let's see how fast this gets processed. We still don't know. Initially, they said like seven to 10 days. You know, we're six weeks in and they've just done 135 million so far. So something's working over there. Deputy treasurer, Secretary Wiley at the AMO commented one month into the implementation of this provision, there is strong demand for this new upfront discount, which will continue momentum and growing this industry in the United States. As long as people want to buy any V. There you go.

Kyle Mountsier: 6:53

11,000 of our just over 16,000 dealers that are already registered for this thing that may that probably has a few independents in there that are great used car dealers, that probably makes up the majority of the 2000. You know, and we probably know like three of the dealers that are actually making up those used car tax credits on the hood, probably what the I'm excited to see what this does is q1 really heats up and we get into the spring and march is you know, right around the corner is a great selling month. And for dealers to really understand this program get a couple of months under under their belt on actually utilizing it utilizing the system understanding how it applies to the actual consumer, hey, maybe we start to accelerate these Evie sales and at minimum, lower the supply as we go into the summer selling months so that that would be best case scenario for me. But still, like this is money that you didn't have to apply to sales. If you're not paying attention to this if you're not working if you if your people don't understand what's available as far as the tax credits, and you're not looking at this as an opportunity to really really learn the Evie market whether or not your manufacturer is big into the game is a way to slow walk this and get the consumer excited about actually purchasing the vehicle. That's my thoughts that

Paul J Daly: 8:08

those are legit thoughts. I mean, what who said it yesterday? No one's bigger than the market. Who was that? Hold on? Let me scroll down in the show notes. Donald Hicks told Ward's auto Yeah, market is going to tell us what it wants to buy. Nobody's bigger than the market. So tax incentives can be what they hear. And we'll just see if people have to want one. That's picking

Kyle Mountsier: 8:26

up people having a one. Three segways either on Thursday, Thursday, coming in hot just a few weeks after it's launched. A number of users that are quite notable out there in the industry are returning their$3,500 Apple vision Pro headset citing discomfort and limited applicability. Most complaints are around comfort issues, motion sickness, even Parker Ortolani from the verge reported a burst blood vessel after using the headset highlighting health concerns associated with his use. That's why to me it's like your burst blood vessel in there. I mean, I have questions about that. I don't know about how he was using

Paul J Daly: 9:14

he called John Morgan, the attorney they see the building.

Kyle Mountsier: 9:18

My goodness there's a little bit of concerns around file compatibility, multitasking and efficiencies which are dampening the user experience because the whole point of the user experience is to not be blocked out from the rest of the world that's what Yeah, totally different in the Apple vision Pro as compared to the rest of like headset VR type stuff is you can't see the rest of the world and those this is a totally different dynamic for the eye and the body experience and working with what's around you.

Paul J Daly: 9:49

I've watched a bunch of content on the surprisingly I didn't like set out like I'm not interested in getting one but you know Mark has brown Lee, a YouTuber right and Trey hammer a lot of YouTube going on in my house war one for 50 hours. And the review, Apple's calling it spatial computing, right? It's not VR, it's spatial compute peering, one of the supercut and the one kid worked for like 50 hours he played frisbee in it right? Like you can actually your coordination is good. And he was cooking and he like set little timers by each of the dishes right like the water had a timer, the pasta had a timer. And like when you looked over the timer, it's just floating over whenever you have time. Like a lot of a lot of somebody set up his apartment, right with screens where he wanted to be like, obviously, like right across from the toilet, we're gonna put a big screen right there, because it locks these things in place. But without a doubt, it's it's new tech, it's clunky. You really have to be a believer to keep this. So it doesn't surprise me that a bunch of going back especially at a$3,500 price point. Just not really price just not ready for that yet. Unless

Kyle Mountsier: 10:49

you have a very specific use very specific use case or you are like super early adopter. This thing's gonna totally change over the next few years. And

Paul J Daly: 10:57

oh, I'm gonna give an ASOTU CON keynote in a vision pro heads now.

Kyle Mountsier: 11:01

You're not similar to the sunglasses at this point of the episode. I'll put

Paul J Daly: 11:06

those on for the end. There you go. I feel like getting this to the point where there's a like augmented reality. I'm not even worried about it. Yeah, that's the best use of it. So whatever you're doing on Thursday, even if you're wearing a vision Pro and not taking it back. We hope you have a good day with one another look, grow your business serve some people remember it's about so much more than cars.

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