Latest CES Drops, Kia Goes Commercial, Falling Home Prices

Paul J Daly: 0:00

Hey Tuesday baby Tuesday's coming in. I don't know you look a little darker on the camera than you usually do. I don't know what that is. But today we're talking about the latest ces drops, Kia going commercial and falling home prices. I like how you just shut your light off. They're like, Oh yeah,

‍Kyle Mountsier: 0:25

you think that's dark?

Paul J Daly: 0:28

Check it out. I don't know maybe I just looked more pale because we haven't seen the sun in Syracuse and like to like three weeks now.

Kyle Mountsier: 0:36

Well, that's our problem in a day. So normally I have like my light is all set to like little presets and out here is like basically Syracuse today for it's like 55 degrees in Syracuse, which

Paul J Daly: 0:51

is we cannot you know, yeah, it's like the big diffuser in the sky. If you ever want to shoot outside wintertime in Syracuse, if you can deal with the cold, you beautiful lighting. Well, we are coming in hot public policy day, which is a new thing for us. And probably a lot of listeners out there. It's actually having the Washington DC Auto Show, we were invited to cover the event. And they're going to be a lot of policymakers, including to members of Congress OEMs dealers, NADA, fries saw the roster,

Kyle Mountsier: 1:22

and I was like, you know, it's probably good that some dealers don't know about this day, you know, because there's a lot of people that they probably want to get in a couple of fights.

Paul J Daly: 1:31

So we got the Deputy Secretary of Department of Energy we're gonna be so out of place. We have Maxine just wear our hats forward, Washington Oh, yeah, it's a full app for only they're actually going to be to vehicle reveals at this event, one by Aston Martin and one by Rolls Royce bougie. So again, right down our lane right. After after this event is over, which is on the 18th By the way, we'll be there We'll be live streaming from there, check out the coverage we're going to bring. We're going to bring the fun to the industry and really try to bring them more than cars mentality into the public commentary. The public discourse oftentimes dealers

Kyle Mountsier: 2:11

what we're going to ask everybody like we're gonna get them all emotional about that's, that's my goal. While we're there, like ask them about their first car what it was named? Yeah,

Paul J Daly: 2:20

I'll tell you what, I will give you $100 of my own money, if you can get the report from US News and World Report to get emotional.

Kyle Mountsier: 2:27

I mean, let's see, oh, that sounds fun. I used to do these kinds of competitions on the sales floor. Let's go.

Paul J Daly: 2:35

So I will be there. Just stay tuned on the 18th. Because we'll be live in DC covering the event. Also, we're gonna get a preview access to the DC Auto Show, and did check the AV Test Track is open. So find us also, obviously the big show NADA, 23 days away, and we will all be in Las Vegas, or a lot of us will be if you can't be in Las Vegas. The reason our coverage is going to be so comprehensive of the show is because we know that most of us can't go to the show, right? So our goal is to bring as much of the show to you as we can. So make sure you follow our LinkedIn channel. If you're not on it, subscribe to the email, you go to a soda.com and do that and we're gonna bring you all the magic from the show. And don't tell anybody but you might actually have more fun. I don't know. I don't know what speaking you'd be in Vegas for a show.

Unknown: 3:23

Segway

Kyle Mountsier: 3:26

segway segway games on point

Paul J Daly: 3:28

this week, let's go ahead and make up for a really bad for showing the sheer. Hyundai's latest announcement as ces Consumer Electronics Show reveals a robust hydrogen strategy and didn't see that coming signaling a growing industry momentum towards hydrogen as a key player in achieving carbon neutrality. So their ambitious plans cover hydrogen production, storage and use in a variety of vehicles. We're not just talking about cars, cars are one of the segments but also aircraft and ships right it really talking mobility and there's got a couple of business units if you didn't notice, really, this move is part of a wider trend, Toyota, BMW, GM also have been in development of hydrogen fuel cell tech. So the government has invested 7 billion in this which used to sound like a lot of money. But after hundreds like building a $14 billion plant that we just talked about yesterday. It's like the government's got to get those money printers running a little faster. technology behind hydrogens rice, get David Bunsen and so they have something called a proton exchange membrane. So I don't know what that is, but it's it's tooth. ology, but a global CEO CEO Jose Munoz. Munoz said the economics of hydrogen are on their way highlighting the viability and potential of hydrogen in the cars and I think it's important to mention they're not new to the game Hyundai announced their first hydrogen fuel cell, Evie in 2013. Yeah.

Kyle Mountsier: 4:54

I would say Hyundai's like the sleeper of this generation of cars like they keep coming with things that are completely unexpected and and to see them taking the battle to fuel cell technology, as opposed to just like going all in on EVs make taking that like, Hey, we're gonna figure out what comes and what makes the most sense. And here's the thing like it has been said over and over hydrogen is the most renewable and the most scalable and and like not byproducts is water byproduct is water. So like it is a massive opportunity those that can then configure it out at scale. And

Paul J Daly: 5:33

let's just be honest, the engine sound really cool. Yeah, they do. When you put a hydrogen combustion engine in your gun, that sucker it sounds pretty awesome. The trick is, can you get it to shoot water out the back like those jet skis do when you hit it? That would be that would be the real secret. But speaking of other announcements at CES, windshield

Kyle Mountsier: 5:55

wipers are gonna go out I mean, you're gonna be windshield wipers ever

Paul J Daly: 5:59

Yeah, I know. Tony did say Jose Munoz. I don't know if there's another one but it did say that in the article. Totally. Totally. Lucas just put it in Jose Munoz

Kyle Mountsier: 6:08

right did he come back?

Paul J Daly: 6:09

I don't know. So I will we need to fact check that Nathan Can you fact check the article while we're here? You know, I feel like Ron Burgundy sometimes if it's up on the prompter, we just read it. But But watch out GM Kia. Yes, Kia is going commercial as they unveiled their new line of modular EVs under under the quote, it's called Platform beyond vehicle, the PBV strategy, they released this strategy at CES showcasing versatility and innovation. So basically, the new range of products includes the PV five, PV seven and PV one, featuring adaptable designs for commercial and personal usage. So they're going to be launching this globally in 2025 with plans for 15 More EVs of this nature by 2027 so it's software development, fleet management, charging optimization all in one package so look, I'm a big key a fan you know that you can keep put the picture of the vehicles back up. So let's look at these things what I love it how would you describe these to the to the listeners only a futuristic

Kyle Mountsier: 7:20

commercial vehicle with you know, a little bit of Qian you know,

Paul J Daly: 7:27

they're pretty boxy. It's almost like a little bit and kind of has like Mercedes Sprinter meets for Transit Connect meets Yeah, nothing you would imagine in the airport. shuttling you around on the tarmac like it's a people mover but they're cool. I'm a big Kia fan always have been. I feel like their design, their quality of product has always been well and to see them moving into the commercial space. I think it's going to be a real threat to

Kyle Mountsier: 7:55

players I've got two major comments on this one is why did EVs all the sudden make all of the vehicle naming people just less creative? P V five P V seven p v one what is happening with this world? Number?

Paul J Daly: 8:13

It's a letter P Yeah. Oh, yeah. Adrian wall gives mentions on the live stream those comparisons and she put meets Pope mobiel that's a really good comparison. That's kind of half Pope mobiel vibes do

Kyle Mountsier: 8:26

a little bit of that's one. The other one is yesterday, we had a conversation with Atlanta chick Italie, which you're gonna want to catch her Auto Collabs when it comes out. It's coming out soon. We did an interview with her but she has a podcast called EVs for everyone. And she was just saying, Hey, who's listening to your podcast? And you said she said you know what? The majority of people on the dealer side are fleet and commercial managers. Those are the people that are experiencing the most revolution and the most change in Evie adoption because it's easier for large companies they have there's a there's a brand story to tell when they adopt and so forth Kia to go commercial with their fleet is following the trend that we're seeing nationwide for fleet to adopt EVs earlier and fleets

Paul J Daly: 9:13

are you think about that topic, and we've talked about this before, but the path to adoption for fleet, if you think about that decision is not made by it's not an emotional decision, right. Fleet managers are very data driven. They're very practical, they're very engineer like and how they move things from point A to point B. So all the calculations can just happen. And EVs make a lot of sentences, a lot of predictability. A lot of where it's going to be parked at the beginning end of the day, how many miles it has to be driven. You can analyze that and optimize it. So

Kyle Mountsier: 9:42

the Amazon, the Amazon EVs floating around Nashville, they just whizzed around here like you've never seen. It's unbelievable. Yeah.

Unknown: 9:50

Do they look so cool? Yeah. Who made those there's a brake job who made them? Right? Yeah, yeah. Okay. Very cool. Speaking of things dropping segway, thank you. segues. And

Kyle Mountsier: 10:01

speaking of Nashville, I'll tell you what to Nashville stories in one day. I mean, I'm pinning this as a Nashville story but you know, we'll get there. So Zillow is latest forecasting indicates a potential decline in home prices across 34. Us, major US cities and 2024, marking a significant shift in the housing market dynamics, especially in former pandemic home buying hotspots. So the forecasts based on those home value index suggest price drops in cities like San Jose, and New Orleans as high mortgage rates and lack of demand are contributing. So there is this this prediction, and there's a little bit of debate in in the home market side of stuff on how much things will change over this year. But Zillow is predicting a little bit of stabilization, Fannie Mae is expecting a rise by a year and there's a lot of speculation that that mortgage rates are continually going to continue to decrease. And I will say, I've watched a few videos, I have some friends that are real estate agents, and they share a lot of stuff on Instagram. And like everybody is saying the minute those interest rates start dropping, homebuying is going to start accelerating because there's gonna there's been a lot of sideline buyers over the last nine to 12 months that are looking for the opportunity to purchase. Here's a couple things on the list. So I'm just going to throw it out there that I think we have like a so do brand DeSoto has a lot to do with like the ones that are back. Okay, so check this out, like the highest mover this year they're saying is going to be San Jose, California, but in the lowest movers Look at this. Buffalo, New York,

Paul J Daly: 11:41

it's that more than cars and cars episode, everybody's

Kyle Mountsier: 11:44

moving back to Ohio. That's where I was born. Oklahoma City couldn't help you. I don't know what happened there. Nashville, Tennessee. That's where I live sea bass, Philadelphia, Pennsylvania, all in the top seven?

Paul J Daly: 11:57

Well, we need to benchmark that after after the Eagles season is over. Because I'm sure this data came in when the eagles were still doing. Yeah, those prices might drop even further. So basically 36 of the 50 top markets and dealers are going to be feeling this in real time because real estate pressure obviously puts budget pressure on everybody, especially when someone's buying a new home. Traditionally a time when people typically buy a new car as well, big life changes, usually having children or needing you know, moving further from the city, etc. We talked about that a little yesterday. So the interest rates obviously affect cars directly the mortgage rates and home buying prices probably affect it. What do you think that trailing indicator is?

Unknown: 12:36

Six months?

Kyle Mountsier: 12:37

Oh, no quicker than that. I think it's three to four months. Actually, I remember I'll never forget the conversation that you and I had with Alex Vetter two years ago at MRC, just saying hey, look, where does auto look to kind of catch trends and in a lot of time, it looks towards the mortgage and the home buying industry to say okay, what's going to happen three to four months, because there's a lot of correlation between home buying and new car purchasing.

Paul J Daly: 12:59

Well, I think if we learned one thing over the last four years is that this is all just a guess.

Kyle Mountsier: 13:06

Who really knows true gonna have a true to your people stay to your process and commit to your customers. There

Paul J Daly: 13:12

you go. Well, one thing we can tell you with a high level of certainty is that a lot of people in the soda community you're gonna go out the door today and serve some people and we will be back here tomorrow morning to help you do the same. We'll see you tomorrow.