GM and Toyota Smiling, 99 Year Partnership, Gen Z Burrito Builders

Paul J Daly: 0:00

I actually hit it because there are people colleagues more than cars universe members in Las Vegas right now for the NADA show stepping up. Today we're talking about GM Toyota a 99 year partnership can finish and Gen Z burrito builders I can't say burrito building without thinking of Sebastian Maniscalco. Guys trained in burrito built that's one of the greatest like bits. The bits that I've seen. It is absolutely absolutely well we are coming in super hot January 30 Dude, January is almost over almost there like it's February

‍Kyle Mountsier: 0:52

and we're into the years like fully into this thing.

Paul J Daly: 0:56

I don't know good morning to everyone on the livestream lots of people saying hi this morning Christine Leah Adrienne Good to see you people on Instagram who we can see comments right here in this feeds. Good to see you as well. But February's almost here two days until NADA starts 105 days until a soda con starts. And we have some announcements about a soda con that we talked about yesterday. Yeah, but we officially announced on social. We have secured as a keynote speaker, the author of unreasonable hospitality New York Times best seller, epic restaurant tour had the best restaurant in the world. We'll get Dara. He is going to be our keynote speaker at ASOTU CON, please come and meet him. We've actually seen a lot of dealers and dealer groups have been like starting to pay more attention to this book. Walser just had him at their annual team meeting. So like, it feels like the momentum is moving toward a high fatality,

Kyle Mountsier: 1:45

a whole bunch of people across the country thinking about that in the same room at the same time and then having conversations about it, because that's what like we've already just in the last two weeks heard of so many instances that Adam so to kind of come real collaboration real thought real work together understanding like how to actually get things to the ground. And so I think that that our is going to be a moment that we look back to over 2023 2024 and go, that was a moment. That was Yeah,

Paul J Daly: 2:15

I think you're I think you're right. Oh man, more people saying Hi, Michael Rodriguez. Oh, man from key office go one of our favorite stores in the country. Michelle, good morning, Adrienne. Your son says hey, we say Hey, back to your son always want to bring the next generation in. Oh, that would be a great segue into one of our stories, but we're not there yet. Hey, if you're going to be at NADA, super, super important. We're getting the asoto more than cars community to gather everybody together if you're there, and you have to be there on Thursday, but Thursday 315 to 330 at the NADA live stage, which is right next to registration in the conference center. We're going to be on stage for 15 minutes showing a little more of our more than cars documentary to be released. We're going to have Andy Belcher, the president CEO, dealer, principal of Mohawk Chevrolet, also the head of charge of like the GM dealer Council, so he's a thing. And always a lot of fun. So please join us at the live stage Thursday 315. And then right after we're gonna like huddled a little crowd over a you got, let's see householding

Kyle Mountsier: 3:19

get one of these pins. Everybody wants a pin. And

Paul J Daly: 3:24

so we have, we're gonna have a meet up. I don't know how many people will be there will cause a little bit of a ruckus, but like, we'll be polite about it. And we have these pins. Everyone that's in this community. We want the pin on your lanyard, right so everyone can see and learn what more than cars is all about also have these cool little holograph sticker hologram stickers that can go on your badge. You know how it is everyone looks at your badge to see if they're you're important enough for them to talk to. But you do it too. So don't hate.

Kyle Mountsier: 3:51

Everyone's doing it. There are looking at your badge. Oh, the

Paul J Daly: 3:54

kids are doing it. I'm always like, they look at my badge. I'm up here. I'm up here. All right, let's talk about some news today. It's good news today from both GM and Toyota as GMs financial resilience is shining despite the UAW strike. Remember that and setbacks in its crews autonomous program. While Toyota is also surging to record sales and production last year, leaving the chip crisis firmly behind us. GM net income went up 5.2% exceeding their four year forecasts. They did have a little bit of a drop in adjusted pre tax earnings due to the strike. But obviously they recovered and they beat what their expectations were so Wall Street loves that 7% up in pre market trading. Toyota also reported a year of record highs in both sales and production with a 7.2% increase to 11.2 3 million vehicles globally. That's a lot of cars. Evie played EVs played an important role for Toyota obviously selling tons of hybrids plugins soaring to 35% of their vehicles sold had some level of Eevee. Powertrain said

Kyle Mountsier: 5:04

Toyota. See? We've been doing this forever. That's it.

Paul J Daly: 5:08

See, that's it. That's the whole the whole statement. See, GM, GM CEO Mary Barra remains optimistic. She said I believe GM is well positioned for your strong financial performance talking about 2024 that will build on everything we've accomplished and learn one of their main goals. Put out profitable EVs.

Kyle Mountsier: 5:28

Yeah, because they lose a lot of money right now. So that's a great goal. I think they could just if they could just fix that. They can fix that they okay. It's a little thing but I will say like a growth in net income, despite the US UAW setbacks and spending on the cruise project, like they're gonna be okay, fam. Don't be okay.

Paul J Daly: 5:48

The bolts coming back. Right?

Kyle Mountsier: 5:51

That's coming back.

Paul J Daly: 5:52

It's gonna be a big one. I think he's, I mean, the bolt was like a really successful Evie. And they're like, it's gone. It's gone back. I can't remember is this bolt going to have CarPlay? Or is this the first one that's No, no,

Kyle Mountsier: 6:04

no, no, no other cars are gonna have CarPlay and just ripping it right out. And we'll

Paul J Daly: 6:09

see. We'll see. I wish I had a good segue for the story. But we have another another little trigger pad we need to hit during this. So Ford Pro is talking about Ford right. Talking about Ford. Ford Pro, is doing its part to move the automaker closer to an electric future, as they announced the deal to sell over 1000 EVs to a longtime partner, the company Ecolab, this partner chip goes back to 1925, almost a 100 year partnership. And this is also kind of like marking eco labs significant step toward an Eevee future they've committed to this and having a fully electric fleet in the state of California. So it's includes a combination of two different vehicles. One is the f 150. Lightning, the other is the Mustang Mach II. I can't believe we still call this thing a Mustang.

Unknown: 7:00

Why does Why does eco lab need Mustang Maki's? Because it's

Paul J Daly: 7:05

not a Mustang. out it's a hatchback.

Unknown: 7:09

It's it's a station wagon. Paul, it's a station. Thing.

Paul J Daly: 7:13

Ecolab has the service techs that need the trucks and the vans and then they have the salespeople, right that are going to be in the Mustang. You know, Mustang Mach is and it's part of their goal. Their goal is to electrify their entire North American fleet by 20. I haven't said 2030 And a lot I'm

Unknown: 7:31

got so

Paul J Daly: 7:33

they want to basically have net zero emissions by 2050. Their CEO Christopher Beck said the dual benefits of switching to EVs and here's where we've talked about, you know, fleet relay being an obvious fit for evey adoption, enhance productivity, reduced operational cost, estimating savings $1,400 per vehicle per

Kyle Mountsier: 7:51

year. Yeah, this is this is like the big question. And hertz has already been pondering this question and changing their strategy. But you have this massive fuel savings, massive maintenance savings, but the repair costs and the repair timelines are still an issue. So if Ford can solve this for Ecolab, we may see like the first partner to go hey, figured it out. We got the cost savings and we got the where and we're keeping the vehicles on the road so a partnership like this may actually work really really well.

Paul J Daly: 8:19

You know, hurts never well, you think about this hurts and ever got the benefit of fuel savings. Right? Because the cut yet because the renter pays for the fuel. Ah, right. So they never got the benefit. It was just more expensive to repairs maintenance

Kyle Mountsier: 8:35

probably years, right. This gets you fuel savings, including and we'll see what the

Paul J Daly: 8:40

insurance savings is right. We've been hearing a lot of stories about insurance costing a lot more for an Eevee right. I feel like that $1,400 could get scooped up really quick with higher insurance costs. Yeah, but hey, you got to start somewhere. got to start somewhere. Speaking of starting somewhere,

Kyle Mountsier: 8:53

see that was so strong with the last paywall right there heading into its busy busiest season, which is March through May. Chipotle is setting its sights on Gen Z who makes up 73% of its current workforce of 110,000 people. They're offering unique perks as it plans to hire another 918 1000 workers. Some of the unique perks include a 4% 401 K match great for young people making student loan payments, as well as a special debit card that helps card holders build their credit. So they're helping out the young folks. Right now Gen Z is pressing into the workforce with teen unemployment reaching a 14 year high indicating a shift in the labor market dynamics. Elizabeth Anna not an economics professor said when the labor market is tight, more teens work. Additionally, teens Gen Z because of a lot of the changes in the the the actual like minimum wage have seen the largest growth In wages, year over year, seven twice the percentage wise and 9.8% Pay bump, which is two times more than the overall workforce. So well getting their money's worth, they getting some nice perks, they're saving up for the further future. They're getting a little bit of credit built, and they're working at Chipotle, and they're making burritos and eating burritos

Paul J Daly: 10:22

and eatin burritos. There are a few things about the story that that come to mind really quick are like, a few things that triggers number one. How do you hire 19,000? People nationwide? That sounds unbelievable. And then I was like, Well, you could just like, try to like, advertise at A T Swift concert. Or you could be a sponsor of a Mr. B's video, I bet they could fill 19,000 positions in a heartbeat. Easy, right? Just I mean, it's probably not that cheap, though to sponsor Mr. Beast. You know, there's

Kyle Mountsier: 10:52

there's no way that's cheap. But I mean, like, Chipotle has got a good thing going I will say just still, it's a good thing going from the food. But also, like the the actual work environment. I rarely go into Chipotle and feel like everybody's angry. Just kind of a general good mood. Yeah, absolutely.

Paul J Daly: 11:12

I agree. I mean, it always starts with the management and I know their management program. Training is pretty good. What I like about this is the attentiveness to the needs of the Gen Z workers. I think dealers can learn a lot from this, who would have thought like helping someone build their credit would be a value proposition, right? But it seems like a fairly simple one, you know

Kyle Mountsier: 11:31

how we do that and auto. You we hire them and then we're like

Unknown: 11:35

you get them in a car car. It's a dual strategy.

Paul J Daly: 11:41

The other thing is like giving them a little bit of an increased 401 K match if they're paying off college loans, right, a lot of times students will go to college and realize I didn't need that degree to be in the auto industry, but I can make more money in the auto industry than I would have made going into the thing that I studied to go into. So I think a little bit of student loan like assistance could go a long way and not cost a lot of money could be right it's a real differentiator. I mean, a few 100 bucks a month can make a massive difference how many

Kyle Mountsier: 12:10

dealers are paying for their their team to go to like GM school NADA? NCM? Like what if people wanted to get? Wouldn't that make sense to go ahead and like, give some assistance on that? Or

Paul J Daly: 12:22

oh, no, I think I'm just talking about assistance to pay off the thing you've committed to? Yeah, without you think about that. Like that registers a different place in your brain when you're at a job and it's like, oh, but I do get 300 A month toward my student loan bill. And if I leave this position, or lose this position, yeah, I don't get that. I think it just occupies a different place. It does, you know, different place. Well, look, hopefully you walk away from the show with a few ideas, a little bit of inspiration. We hope you're inspired to go to ASOTU con.com and get tickets to come see we'll get there. We also listed some speakers there. Go check it out. And we'll see you tomorrow morning.

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