Large Companies Losing, Less Lincoln Stores, Fisker Going Franchise

Paul J Daly: 0:00

It's Friday, January 26, we have so much to talk about on a Friday. And we're also welcoming a very special guest commentator should be goes from stream companies. But you know, we have some news and NADA, and you know, other things to talk about today.

‍Kyle Mountsier: 0:32

Next week this time, well, okay. Let me give a little caveat on quote, unquote, this time, because it's technically 6am in Vegas, but around this time, the industry will be thinking about waking up and heading to the show floor and the education and the community, the conversations, the OEMs things and all of the stuff at NADA, like, let's that

Paul J Daly: 0:59

probably merits a little housekeeping. So if you're used to the show coming on around nine, Eastern, it's gonna be a little later. But starting on Thursday, we're gonna have NADA, show coverage. So make sure you stay tuned to the channels, the best place is really, LinkedIn. If you go to LinkedIn and follow the asoto page, we're gonna have a lot of content being streamed and posted there. But also go to our email list, go to a soda.com, sign up for the email. So you'll get the recaps. You'll get the live stream links and all that. And if you're going to be in Vegas, we are having a meetup. And people have been DMing texting me like I'm being there. People are showing their flight schedule. So I got two people I won't bring their entire company

Kyle Mountsier: 1:38

we're bringing that literally this morning texted me like I got our entire company on a calendar invite. We're coming. So it's gonna be crazy at the live stage. Well,

Paul J Daly: 1:47

350 Yeah, so 315 On Thursday, the 31st. The NADA life stage is right next to the registration booth. So it's in this main huge lobby, we that's upside down. There you go. We are going to have pins for everyone. And these holograph stickers that say more than cars. Because the point is we're going to actually have more show Intel. Oh, show and

Kyle Mountsier: 2:11

tell I love this. This is a great Friday, the poor people that are listening to the podcast, you can describe I'm good at this.

Paul J Daly: 2:17

I'm holding up an NADA show bad right now. And the point of the pin in the sticker is that the pin goes on the lanyard here. And the sticker goes on the actual badge because you know what it's like at NADA, everyone's looking down at your badge to see if you're important enough for them to stop and talk to or not. That's such a good way of putting it. And if you have more than car sticker on your badge, people may just think you're better than you are. Let's just put it this way. Right. I used to say like, you know back do you remember MySpace? Do you even did you even have MySpace? Oh, I

Kyle Mountsier: 2:49

had a MySpace. I guess I probably still have a MySpace. I don't know what I hope

Paul J Daly: 2:53

you don't still have a MySpace. But I used to say I'm like, look, listen, we all know that profile. Pictures are just a way to judge whether or not you're better than somebody else.

Kyle Mountsier: 3:02

That's exactly sides.

Paul J Daly: 3:05

Make sure you're at the meet up 315 That is Vegas time she'll Pacific 315. On Thursday at the NADA live stage, we're going to be on for 15 minutes featuring the Docu series we're doing with the dealer. And then we're going to shuffle off to the side, have a big meet up, make a bunch of noise, give everybody the pins and the stickers and and hopefully meet a lot of people for the first time and reunite with people we haven't seen in a while. Yes. All right. It's time for the guest commentator. Let's let's still be into the show. I don't know. So are you ready for all this on a Friday morning? Oh, hold on. We gotta unmute you.

Kyle Mountsier: 3:38

She's gotta unmute.

Unknown: 3:40

I'm learning how to use our audio for the first time. I mean, you

Paul J Daly: 3:44

seem like the kind of person to me that wakes up about the crack of noon every day. And then

Unknown: 3:49

yeah, yeah. Sounds sounds about right. Yeah, you've probably been on for four hours already. I am not. So I'm not a morning person. But early enough that I'm running on very little sleep over the last, you know, four or five months.

Paul J Daly: 4:05

Yeah. So well, you have a pretty big title, Executive Vice President of Strategy, partnerships, our strategic partnerships and marketing, right, so they just keep giving you more responsibilities over there. So but you're gonna be at NADA. So I'm sure there's some preparation going on around the halls stream right now. And you have a pretty big announcement today of a pretty sizable partnership. Tell us about that for a second.

Unknown: 4:27

Yeah, I'm really excited. This actually started last year at NADA. We had some conversations because we felt like there was this gap in the space of a partner a solution that does it all when it comes to advertising technology, and does it really well. And so stream is very excited to announce a strategic alliances with the DRR

Paul J Daly: 4:51

go, well, that's a big Webtech big ad, ad tech, all that. And as in the marketing industry, we like to say so everyone Can affectionately have one throat to chat? Okay.

Kyle Mountsier: 5:05

for better for worse, we just want

Paul J Daly: 5:07

to know whose fault it is that something's not working.

Unknown: 5:11

Well, that's not going to be the reason that people communicate with us. But yeah, so streamlines communication one, one joint meeting, nothing's changing between both orgs. We're just integrated. And we worked all year to make sure that we had the processes in place that every team was coordinated well, and so you know, we're gonna have this ownership between both have single points of contact and meetings that are streamlined and reporting, and it's on top of which there's exciting technology that we're going to continue to innovate with. So really, really, really excited.

Paul J Daly: 5:51

Oh, well, we're excited. I'm sure there's gonna be tons of buzz and energy around this on the floor. How cool that both companies get to be at NADA together, and have all these joint conversations. So we're excited to see how that plays out. Thanks for being brave enough to join us as our guest commentator today. Because

Unknown: 6:07

thanks for having me. I'm not gonna say that I'm not nervous.

Paul J Daly: 6:11

Okay, well, here's the format, right? We're gonna do a story. And then we're, I'm just I'll read the first story. And then I'm just gonna be like, open it up for comment. Right. And we're be recorded in live stream. Hey, I want to welcome Chris just commented on LinkedIn. What's up guys? Chris, from room. Chris, what is that we've had so many new we, you know, they call themselves roommates. Join our community after we posted a full comprehensive google doc of all the room associates now looking for a new home and automotive. And so if you go to our LinkedIn page, you'll see that that post there and if you are looking to hire some really passionate people about the auto industry and welcomed them into the retail network with open arms, that's the place to be so I've Yeah, we're going to kind of continue that conversation into this first story. So the big conversation right has been around the clothes closure and subsequent layoffs at the online retailer room. They are but they are the only company showing signs of changes. Sweeping trend is starting to reshape a little bit of the corporate landscape of several high profile companies also announcing layoffs from tech companies to media companies. And we just wonder, like bring a little bit of attention to this. For one to just know what's going on in the rest of the corporate world. But also, I think to spring up some gratitude about the strength of the retail auto industry. So Microsoft has initiated layoffs, affecting 1900 jobs and gaming divisions, mostly Xbox and Activision Blizzard, which they acquired a while ago as what they're calling a strategic alignment. LA Times is cutting 20% of its newsroom staff totaling 115 editorial employees. Online reporter Business Insider reducing its workforce by 8%. So obviously, the news industry changing quite a bit the media business changing quite a bit. Pear about global also announcing job cuts, to as a part of cost cutting measures for international content. And Google eBay discord. Tik Tok and Twitch, have also announced layoffs, including it's not in the notes here. But also Salesforce is reducing its workforce, I think by an additional 1% After a 10% of last year. So I mean, things are changing, right? Things

Kyle Mountsier: 8:16

are changing, lots happening. And you know, I'm not sure exactly what's what's how this is going to impact Otto. But like, Microsoft just bought Activision. And now is laying off 1900 people in that division. So it's clear that like things are changing first half of the year. And luckily, like we haven't seen a ton of this impact in auto except for in room and like north northwest power sports. I haven't really seen like tech companies being in this position. We're more seeing the stuff like Sumi is talking about which is partnership growth and growth. Right. Yeah.

Unknown: 8:55

Yeah. My heartbreaks for people affected. We were definitely seeing it across. Like all this technology right now, which I feel is still this domino effect of what we we we honestly saw since since COVID, which is weird to continue to talk about four years later. But it's heartbreaking. But again, I think we are getting stronger. We are focused more on consumer experience. There's, we're going to see announcements, from huge juggernauts really trying to get more into this space. So I don't think that the battle is quite done, where we should take the foot off the gas of improving that consumer experience and streamlining it so that it is it's just better, easier, faster for people to want to engage with franchised dealerships. So I think that or you know, independent for years. There's there's a lot of opportunity out there. We just have to keep chipping away at it, but I don't think we're done. Super

Kyle Mountsier: 10:00

keen observation because there are a lot of tech companies and even manufacturers large retailers looking to siphon market share in like in the auto automotive space because it is still a burgeoning business sector. And so as some of these companies like lose opportunities in other verticals, they may look to auto to find opportunities. And it's going to be important that the companies that are already doing business are continually innovating to keep up and not fall by the wayside. So I think that's a great observation. But speaking

Paul J Daly: 10:32

of companies streamlining and trying to innovate, segue, our right. So Lincoln plans to cut 100 100 More dealerships in 2024, following the reduction of 120 23. Looking for a more compact, profitable and streamlined network of around 400 stores nationally, that's the target. So their buyouts includes incentives like increased inventory, right, a lot of Ford Lincoln dealerships out there, specialty plan loyalty plans for customers, as well as a strategy to enhance the throughput through the existing or the remaining dealerships. So they want to really create brand exclusive stores reducing the dual Lincoln Ford showrooms, with an emphasis on an increased client experience, right, something we talked about a lot. But despite the recent challenges, including sales decline and pause, and its Evie certification program, they say they're optimistic about the future highlighted by all these model refreshes that are about to drop this year. And next year, Diane Craig, the president of Lincoln emphasizes the importance of thoughtful consolidation when she said, We want to help dealers very transparently, in working through the considerations and really forming stronger partnerships. So we're talking about streamlining operations, and leaning into making the the existing dealers more profitable. And obviously, the customer experience is the thing that they say they're shooting for.

Kyle Mountsier: 11:56

I don't think this is the first time that you'll hear this story over the next three years from manufacturers looking to get better experiences in the showroom. And the reason being is typically what happens is kind of the lower percentile of dealerships and in in CSI and experience, start to get cut, to prioritize that better experience. What this does, actually is put Lincoln at about 150 to 180 cars per rooftop sold in new cars, which I think is a really strong target. It gives a lot of profitability to the dealers that make it. And it gives a streamlined communication pattern for customer experience to make sure that you're getting the best experience out of the best dealers. And you know, I do think like this idea of, hey, let's make sure that we don't have this Ford Lincoln showroom actually enables a little bit better brand presence, even though it's the same company. So I just think that we're gonna see this happen at multiple manufacturers, especially mid thigh lines.

Paul J Daly: 12:58

For sure, so be any thoughts on this, especially on the customer experience side? So

Unknown: 13:03

many thoughts. I mean, again, I kind of bridge what we just talked about to this, because it may seem disheartening, but I think what it is ultimately going to do is strengthen the position. Because when there's so many options, we are just competing with each other instead of with the conglomerates that are coming into the space or have been in this space to take that market share away from the franchises in general, right. Like my husband is from Tech. He's been around automotive. For the entire time I have been here what almost two decades. And so he has kind of a different view. But even still, he looks at the experience and websites. And we have very loud debates about this all the time, because he worked for Amazon and they come from this very tech heavy, it's not easy at all perspective. So if all these big organizations with billions of dollars to throw are wanting to get into the space and take that market share they very well could. We can't ignore that. So when we get more strategic and more less focused on fighting each other and more focused on our brands and selling that experience, I think it's probably going to shift back for us to kind of have that control and change the narrative of what it means to engage with a dealership.

Paul J Daly: 14:41

I think that that's this this element of this changing demographic. I was reading an article this morning about what Gen Z buyers want. And it is like there's another shift and a pivot going on. of people liking to walk into a store we know like the auto data Real that we have a saying like, you know, most people really do want to come into the store. But Gen Z is even more focused on a meaningful experience, not just a good experience, but a meaningful experience. And I think all of these moves and all these shifts of people, spending more time looking at customer experience would be well served to look for, like, how do I make it meaningful, and not just good? And so a lot a lot of transition going on? And I feel I

Kyle Mountsier: 15:26

feel like you have a I feel like you have a little like thing in your office somewhere. That's

Paul J Daly: 15:34

just part of my DNA. Yeah, we have a big neon sign conference room, it just says make it meaningful on the wall in the

Unknown: 15:39

next episode who shirt? Yes, yes, let's

Paul J Daly: 15:42

do it done. We're gonna make you the first you're talking

Unknown: 15:45

my language, though. It's like the sociological impacts of how generations kind of shift their behavior. And I think millennials being raised by a certain group that had this, you know, don't buy new cars, dealers have, like so much shakiness to them, like all those narratives that millennials were raised on is very different from the reality and experience of Gen Z. So when Gen Z is coming into this space, the the kind of gig economy and shared vehicles, all of that has shifted through COVID. And so now we're seeing people who have zero experience making phone calls to dentists that really want a better experience, but also want to touch and feel the car to feel comfortable in it, that don't have as strong opinions. So we have this really wide open opportunity to completely shift the narrative. With that so much

Paul J Daly: 16:45

fun and you know, thinking about our new roommates who are paying attention to the show in the content, room, obviously, online only. We hope that you get to experience how cool it is to actually come to a building everyday where people are fired up to deliver a great experience. And you get to actually see the customers and see the families and see that the joy that happens when the process is done right. And they get to get in the new car. It's so rewarding and so much fun. All right, speaking

Kyle Mountsier: 17:13

of showrooms, Paul, let's do it that way. We'll wrap this one because it's just it's in our it's in our happy place when we get to talk about this Evie may automaker Fisker is undergoing a significant shift in sales strategy for its ocean, Evie, moving from direct sales. And now embracing third party retailers that's dealers fam dealers, everyone says that, but they send in an entourage to NADA next week. They're currently courting over 65 dealers to bring their vehicles to their franchise. The company recently hosted a number of dealers and an open house event in California. Heinrich Fisker himself is going to be attending NADA for the first time, including participating in private dealer meetings and giving a speech emphasizing their commitment to this new dealer partnership strategy. He stated we're not really asking for crazy money for investment Fisker outline. He really has a an approach of rapidly expanding the oceans presents that their new Evie with first deliveries in February, the week of February 5. If you don't know, Heinrich was a part of the Tesla development team for the Model S and was later sued by Elon Musk for taking developments to start his own company. So this guy's full troublemaker and he's coming to

Paul J Daly: 18:37

the dealers and he is he has we have to figure out where this private suite is. So we can just Kraton. I'm just kidding. We're not going to do that. And if we don't find out, we're not going to tell you but we need to figure out how to get an interview with Heinrich Fisker.

Kyle Mountsier: 18:48

We're gonna do that.

Paul J Daly: 18:49

I just thought that you look us up.

Kyle Mountsier: 18:51

She's like,

Paul J Daly: 18:54

Oh, yes. Let's Yes. We invited you on the show. We knew you had a connection. No, but frill connect us because there is this motion and we've seen it with vinfast and with Fisker, who else announced that they're using deal? But what's the other company? Does it just Fisker? Maybe it was in fast. Yeah. Okay. So this move saying, We understand the complexities BYD, yes, we've understand the complexities of trying to go it alone, trying to do it online, trying to have these kind of like little showrooms that aren't really dealerships, that people just want more of an experience. So we're excited and I think what they're going to see as kind of being one of the first movers to come in is that they're going to be embraced by the dealer body and it's going to supercharge their their efforts to get these cars in front of people to get people in the cars to have people become passionate about it. And man, it's going to be exciting that it's all happening like starting next week. So super, you have a connection here tell tell us about do you have a Fisker?

Unknown: 19:55

That connected, but I do. I do. Like no no My team and now my the extension of my team with Iran. I believe that there's some contacts that I can pull for you guys. So yeah, it's it's it's exciting, right? There's more options and things coming in. But again, I think we're we're in this space to shift the narrative and we've seen people latch on to brand new vehicles and technology. So I feel like this is just adding on to that and it looks really exciting. Well,

Paul J Daly: 20:32

I hope we left you this Friday morning with a little excitement for the industry and for what you're doing and for doing it together. If you're going to be at NADA. We will see you next week. Sumi Ghosh, thank you for joining us today make it more than cars.

Unknown: 20:45

Thank you so much.

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