Transcript 0:00 [upbeat music] Let's go. Second week of January. I thought he was gonna say second- No, I wasn't gonna say it... first second Monday. I'm not. I'm gonna get out of that. 0:08 [laughs] Today we're doing a CES preview, $14 billion Honda plant, and millennials becoming their parents. You guys know the people really wanna know- It always happens... who I be, who I be. 0:17 They stop and stare- It always happens... no need to pee. I feel so defeated about that line. But boy, he not 'bout to be. It- you've, you've known this- Defeated with myself... for a while, though. 0:25 Well, I am the bomb- [laughs] Because I think there's probably a contingent of millennials that trails your, you know, your acceptance curve into adulthood. [laughs] Yeah, without a doubt. 0:37 I mean, look, when you have- Seriously... when you have kids, when you have, like, career. I mean, career, every- they have career. But when you have kids- Like, got married out of college... 0:45 family- Career pretty quickly... kids start growing up... family next, you know, like, yeah Right? It, it just comes faster. And it happens every time to every generation. Every time. And they all start out saying. 0:54 So after you see a couple cycles it's like, "Oh, yeah, it's coming." Oh, yeah, here it comes again. Again. 0:58 The nice part about it is now is that we have all of the statements recorded and documented on social media of like, "Oh, they're so dumb- Yes... because of this, this, this, and this" They're dumb. They did this. 1:09 I would never- I said all those things- Yeah... as a Gen X-er The I would nevers, you know? I said all those things. They just don't exist anymore- They didn't record... because there wasn't social media. 1:17 But it's over now. Gen Z is toast. [laughs] I- they are toast. They're never gonna be able to say a thing. Toast. Toast. Toast. 1:24 Hey, there's so much good thing- uh, so many good things going on, uh, in this season of the industry. Uh, first quarter, right, NADA is coming up. 1:33 We're heading out to the Washington Area Public Policy Show, um, in just under two weeks here. 1:38 We're gonna actually spend some time with some members of, uh, members of the government and some OEMs, and there's gonna be some product releases. 1:44 We're really excited to bring that coverage to you, uh, live from Washington, DC. Um, and obviously N- NADA is, is coming up. The energy is just... Now it's the full ramp up, right? Less than 30 days. Um- Right. Yeah... 1:55 we're just going. Good morning, everybody on the live stream. Tony Lucas, good morning. Um, I know we have Instagram rocking as well. 2:01 Hey, have we told the people that we're gonna be hanging out at, uh, at one of the workshops on Friday? Have we? I don't even know where it is. Oh, that... Well, it's called- But-... 2:10 the, the NADA Twilight Exchange, as they call it. Yep. Yeah. No, I don't think we have. I mean, we've really been... I think this is the week we start talking about all the things that are gonna be happening at NADA. 2:19 Yeah. But the twi- tell the people about the Twilight Exchange. We're doing a Twilight Exchange. It's dealers only. I think it's, like, 20 or 30 dealers in a room working on real things that are happening right now. 2:29 Mm-hmm. Yours truly's are gonna be hanging out moderating that thing. And, uh- Customer experience we're talking about... we do a lot of fun- here's- we're talking about customer experience. 2:36 And the one- uh, the most fun part of it, because it's the Twilight Exchange and it's not like the daytime workshops, is there's an open bar during. In the room. [laughs] So it, it get dicey. [laughs] In the room. 2:47 And it's a cool format. So NADA reached out. Usually dealers moderate this, but they asked to see if we would moderate it. 2:53 Um, basically people get to submit topics that they wanna talk about, and you and I are gonna, in real time, go through these questions. So hopefully we can, uh, get them answered, right? 3:01 'Cause dealers wanna hear from one another, so our job is to extract all possible knowledge from the dealers- All of it... in the room to share with one another. Uh, we're excited about that. 3:10 We also found out it's not, like, full-time, isn't locked and loaded, but you have done it, community. 3:16 More Than Cars, uh, the show that highlights dealers and the great stories coming out of dealerships from across the country, is actually going to be featured at the NADA live stage. Oh. 3:27 So, um, stay tuned because we're gonna let you know what the time slot is and the day and the time slot, and we hope that our community can show up to that live stage in force. 3:37 Um, it's just a super cool stage that NADA has always done. They broadcast it out. It's something that a lot of people who can't go to the show watch and participate in. It's right by registration. 3:45 So, uh, there'll be more information about that soon. So there you go. We- no grass growing under our feet in 2024. [laughs] There you go. It's getting... We're getting after it. 3:54 All right, let's speak of- speaking of getting after it. Stop. All right. Segway. Times. [upbeat music] This, this has to be a good segue week. I'm here. 4:01 So as the, the Consumer Electronics Show, or CES, readies to open their doors tomorrow in Las Vegas, there are several things the auto industry are keeping their eyes on. 4:10 Uh, first, there's a glaring difference between, uh, auto industry participation this year and what it has been last year. Um, of the Big Three have opted out. A lot of the other OEMs. 4:21 Now, last year was all about electrification and charging and all the hype. Um, a lot of people backed out. Hyundai, however, is leaning in, uh, specifically talking about their Vertiport and their, uh, eVTOL vehicle. 4:33 Um, so they're kind of, like, going way over the horizon, which is cool. Honda is gonna be showing their latest concept, uh, in their collab with Sony called Afeela. 4:41 And VinFast, who we've been talking about all week last week because of their, um, launching into their dealer network, they're gonna be revealing two vehicles, uh, which may be coming to the US. 4:51 One is a $20,000, I did say that, $20,000 VF 3 micro car, as well as a pickup truck that they've alluded to as a concept they're saying is going to make it pr- to production. 5:04 Um, also at the show, auto suppliers are in full force, right? A lot of consumer adoption of tech into the industry, so ramping up there. A lot of focus on, like, AI integration with cameras and sensors for safety. 5:15 And by the way, I had to put this in, if you're going to CES, you can actually pick up your badge at the airport. That is just, like- Ah. I would- [laughs] That is unbelievable. I'd be all over that. 5:27 So sm- well, look, 100,000 people inva- like, they don't, they don't need lines at the convention center. You know what I mean? Like, why not give it... Just hand everyb- everybody one that's coming off the airplane. 5:35 What's the NADA show count? 30, 40,000? Yeah, like 25, 30,000. Gosh. Yeah. This is, like, two, three times the size. It's massive, yeah. We... Okay. I said a lot in that. New Year's resolution- Okay... 5:46 is next year we're going. [laughs] Yeah. Yes. That, that's a great... We should just plan it. Every year, every year we're sad at this time. Yeah. But look, I mean, look at VinFast coming out swinging, right? 5:56 Well- Announcing the dealer network. And obviously they made the CES decision prior to that. Exactly, but, like, bam, bam, bam. Like, they're coming into it hot. 6:04 And look, when you bring a pickup into the US, like, that's-That'll get everybody excited, and a $20,000 car. 6:12 Now, it's a little tiny thing, I don't know if you've seen the VF 3, um, but they're expanding their, their- It's way cooler looking-... their EV line... than the Swatch car, though. Let's be honest. It is. 6:21 [laughs] It's, without a doubt. [laughs] Um, yeah, I'm, I'm paying attention to VinFast because they're bringing new models, they're le- leveraging the dealer network. Um, it's gonna... 6:32 I think they're gonna- And they're building the hype, they're playing the brand train right now. Obviously, a lot of questions about- Exactly... 6:37 quality and range and all those things, but I think we're gonna get to find out, like, the chicken or the egg conversation, right? What do you need to do first? Is it- Yep... 6:45 get a car that's okay enough to get to market, to build the right distribution and the right brand, and then give you time to work on the product, or release a great product first and, uh, maybe not make it to market? 6:55 [laughs] So it's... Well, we're gonna find out. Who knows. We're gonna find out. Um, a lot of conversation about EVs, uh, for both positive and negative, but without a doubt, they are definitely moving forward. 7:05 Speaking of EVs moving forward. Segway time. [upbeat music] I thought I read this number wrong at first. Uh- It's a lot... it, it's, I feel like it's the most I've heard. 7:16 Starting off with a relatively measured approach, um, in the EV race, Honda is coming to life as they're considering a massive $14 billion investment. Hit it. Hey, money, money, money. $14 billion investment in- What? 7:31 [laughs]... an EV and battery plant in Cana- I read it twice, I had to fact check it. In Canada, of all places. Is that 14 billion Canadian? I'm just kidding. Ontario. Yeah, so it's like 1 billion US. 7:41 Is it really, though? You know. Yeah. [laughs] No, you didn't. 7:44 [laughs] Alliston On- uh, this is gonna be near, uh, it's Alliston, Ontario factory, where they're already making cars, aiming to bolster, uh, their North American presence. 7:52 Uh, the proposed plant, expected to start production in 2028, would be Honda's second EV facility in North America. Now, Canada, this isn't the first EV plant. 8:03 Um, they've been offering a lot of incentives, tax breaks, renewable resource, um, proximity, and all of this. 8:09 Recently, Volkswagen and its battery company PowerCo, uh, are working on building a gigafactory in, uh, very close to it actually, in by 2027. So you know, Honda is converting its US plants- Right... 8:21 to, uh, produce batteries for its E-Architecture platform. But without a doubt, $14 billion, like, investment, they, they've been kind of sleeping on EVs. Not really. Well, I don't know. I mean- Behind the scenes... 8:33 they just haven't been very vocal. It, it- Been measured. You know. Like working in the background, like, "We're not ready to talk yet." 8:38 And you know, it s- it seems like there's a few manufacturers that are kind of following the same kind of thing. I don't know if you've seen their residual values and their impact and their- [laughs]... 8:47 and, and the com- and the type of customer loyalty that they have. I'm just throwing it out there. Uh, but it seems like they're doing that. 8:54 But $14 billion, investing in Canada, which is really interesting, uh, not coming to the US, but it is North America. Um, you know. So credits apply, right? The credits apply, exactly. 9:06 Uh, and, uh, yeah, you get to save the money on the, the Canadian exchange rate, so why not do it? I, I, it's 14 billion. I... Has any other plant been ne- anywhere near that? 9:18 No, I think, what is the, the Ford- Like 6 billion, 7 billion? Yeah, the, the Ford, the Ford plant in Kentucky is, like, what, 5 or 6 billion, something like that. 14 billion. 9:28 I just, like, I had to check that three times. I'm like, "Is it really four, is it 4 billion?" 14 billion, I don't know. Maybe, maybe we're wrong. 9:35 Yeah, 5.8 billion is, is their Blue Oval city, so- I mean, I guess if you think of-... and that's in Kentucky... I mean- Which everything's cheaper in Kentucky, 'cause you know, it's just north of... 9:43 It's- [laughs] Kentucky is just north of Tennessee and south of Ohio, and that's just Kentucky. Everything's cheaper in Kentucky, there you go. [laughs] Speaking of things being cheaper the further out you go. Oh, yes. 9:56 [upbeat music] That segue makes me so happy, because according to new data, uh, which, you know, if you're in the world of being a millennial, it's maybe not new. 10:07 [laughs] Uh, once the driving force behind urban revitalization, the millennials are being priced out of cities and relocating to the burbs. Mm-hmm. 10:15 Reshaping both urban and suburban landscapes in a search for affordable living. 10:19 So, uh, they're moving to suburbs due to high costs in urban areas, despite preference for city amenities like coffee shops, and yoga studios, and wine bars, and cat, uh, uh- [laughs] Cat pubs... 10:32 you know, tea lounges or whatever. [laughs] Um, a, a firm in New York City called Suburban Jungle Group said that residents who move to the suburbs report surges in calls. 10:42 Uh, they're, they've got a sub- surge in calls from millennials, and they are getting alarmed by soaring rents, where rent renewals are up, like, 30%. That's crazy. 10:52 My favorite part about the article is that it leads, uh, with a journalist or a writer from Nashville saying, like, "Yo, we just figured we'd just start driving until we figured out we could afford it." 11:03 And I'll tell you what, in Nashville alone, I'm glad that they started with the Nashville story, you see all these people moving out of the city, and they're not, like, going to the next closest suburb. 11:14 No, it's like 30 to 40 miles outside of the city- #SpringHill, right? [laughs]... just to be affordable. Yeah. They're going to Spring Hill South, they're going to Lebanon East, they're going to Dickson West. Mm-hmm. 11:25 Like, it is way out of the city. Um, as typical, it seems like cities are getting younger faster, where Gen Z is replacing millennials in those cities, um, due to rising house costs. 11:37 Though the study cited that one-third of Gen Z-ers are still at home with parents, so. Yeah. So yeah- Yeah, there's-... the cities are getting younger, but, uh, a lot of Gen Z-ers still are not kind of, like, launching. 11:49 One shopper put it in the article- Oh, yeah... "Drive until you qualify." Just keep going, keep getting, "Nope, can't afford that one, can't afford that one." 11:56 L- I think this-There's, there's obviously this big COVID thing that happened, right? Right. It pushed people out of cities. They went far. Remote work happened. Now people are starting to call back to office, right? 12:08 So now, um, we've, we've covered articles in the past about people doing, like, a super commute, like, twice a week, right? 12:14 It might be, like, two and a half hours, but they only have to do it two times a week, so it balances out. 12:18 The reality is that as the families are growing and as all the things that happen when you start having children and progressing in your career, you start to want a little bit more space. The, the- Yep... 12:28 the two-bedroom apartment doesn't quite work anymore for sanity reasons, um, [laughs] for, for practical reasons. You kidding me? There's no two-bedroom apartments in downtown Nashville. They don't exist anymore. 12:38 Oh my gosh. They just, like, made them all one-bedrooms. Yeah. Ex- exactly. It's wild. Well, that's, that's case in point. 12:42 But what, how this all ties to the ground for what we pay attention to in the auto industry every day- There you go... more people in the suburbs, more people have to drive places, more people need cars. 12:51 And a lot of these might be- Yes... first-time car buyers or people who have ditched the car to live in the city, and now they're coming back. So, um, for all the dealers that are in either... 13:00 I mean, it doesn't matter where you are. You could be a city dealer and market to these folks. "Hey, are you heading out? Let's make sure you're set up." 13:06 Or when you land in a new place, new home registrations, making close with realtors, and all the things for these millennials- I mean-... coming out... even two and a half years ago when I left the stores- Mm-hmm... 13:17 I remember that summer. Like, that was really the first summer that everybody was really spreading their wings- Yeah... out of the COVID era. Mm-hmm. 13:23 And I remember, like, 30 to 35-year-olds in that time coming in saying, "I've never owned a car. 13:30 I, I lived in California, I lived in New York, I lived in Chicago, and now I need a car because I decided to move to Nashville, to the suburbs, where it was more affordable, and I need a car." 13:40 It's like first ownership in their 30s. Yeah. It's wild. It, it is wild. It is wild. But without, without a doubt, it, it presents an opportunity, so that's why we pay attention to this stuff. There you go. Right? 13:50 What an opportunity. So thank you for paying attention to this stuff. The more we pay attention to stuff in culture and in people's lives, strangely, the more we can serve them. 13:58 So we hope you're set up to have an amazing week to serve some people. We have a lot more coming this week. Stay tuned and, uh, take care of one another. We'll see you tomorrow. 14:05 [upbeat music]
