Reacting to Super Bowl Commercials, Toyota’s Record, CEO Optimism

Paul J Daly: 0:17

Oh I thought I have music playing but it didn't. It's Friday though it's gonna be really fun Friday because today Kyle and I are reacting to Superbowl commercials that are you're about to see talking about Toyota's record stock price and CEO optimism the people really want that's right I

‍Kyle Mountsier: 0:32

said optimism optimism baby yeah 2020 force coming in hot I don't know if you've seen them green bubbles on the old stock exchange but he said green bubble looking up yeah, don't you say green bubbles like that in my in my world

Paul J Daly: 0:48

one time green bubbles are a good thing. Unless you shorted the stock in which case you're not happy you're not happy unless you're a pessimist.

Kyle Mountsier: 0:58

That is a day for the optimist is option options for everyone? But we like the optimist. Yeah, well

Paul J Daly: 1:03

everybody that was at the NADA show finally gets a weekend everybody that worked that show no you work more hours in those like three days and usually work in three weeks. And so this this like weekend off your dealer that went to the show, you don't have quite a weekend yet, but you might have a Sunday. Yeah, you might have a Sunday coming up. But you know, feel it feel kind of normal. Back to Back to reality. Almost right there

Kyle Mountsier: 1:25

goes great. You know, we just can't get out of this. This we just can't get out of it. Now. We're gonna keep leaving a retail conference in Florida. It's been like over and over and song.

Paul J Daly: 1:35

It's a great song. It's automotives it's automotive. xantham 95 days until the soda caught everybody. People are starting to buy tickets. Speakers are booking flights we already have our keynote speaker will get Dara may 14 through 17th. The main meat of it 1516 We have a well can breakfast event happening on the 15th. So and maybe another breakfast on the 16th. But we got we got a couple of things in the hopper still. Yeah, but yeah, so if you remember well can or if you don't know well, Canada's you need to women of color automotive as it network. Network. That's network. I got it, nailed it. You got it, nailed it. So we're gonna be doing a breakfast. So it's like an event inside an event right before day one.

Unknown: 2:16

So this this year is going to be the year I mean, it sounds more than conversations is the theme. It's going to be so much more than conversation so much more than conversation so much more than all of it, like I have everyone that I talked to, is so geared up about this event, and we've had industry partners and dealers and we've gotten like multiple people saying I want to speak I want to be there, I want to do this, I want to do that. It's really fun. I love the energy around

Paul J Daly: 2:42

we got it, we're gonna we're gonna I mean, if you're an industry party, you want a sponsor, you better reach out soon, because after NADA, the momentum flying into like, hey, I want to be a part of a sponsor, I want a spot on the floor when or whatever, just reach out to a MJ a MJ at a soto.com to get that going. If you want your tickets, early bird pricing still now they're gonna go up soon, but they're really cheap right now. And what you're gonna get in swag and all the other stuff meals included, like it's, we try to have like a pretty all encompassing event. Like trying to harness the hospitality. We've done that before we knew about we'll get there though. Hospitality

Kyle Mountsier: 3:18

we're gonna be talking fixed ops and, and sales operations and marketing operations and people and culture and everything in between,

Paul J Daly: 3:26

you know, people, there has been a mis misconception that, you know, we're trying to address directly. And that's that people ASOTU CON looks like so much fun that people from the outside can think it's just a fun time. And it is a fun time. But literally, it's funny, we were on the NADA da show floor and some major tech providers have released new products that we are able to track back to specific conversations at ASOTU CON, where the conversation happened that ASOTU CON, the rep in that conversation made it to a rep the rep pass it up and that products were actually built to solve the problem we you know, so I think like the most innovative solutions in automotive actually synthesize that so to kind of

Kyle Mountsier: 4:05

call it calling the shot. It already happened. I know

Paul J Daly: 4:09

it's just a history lesson. At this point. We're gonna do it again. No. Oh, we have one shorter we get the reaction videos at the end some Superbowl commercials. But first, let's talk about a little bit of news. Just regular round up. Here we go. So Toyota set a new benchmark in Japan yesterday by becoming the first company on the Japanese stock exchange to have a market capitalization of 50 trillion yen which is $354 billion. And this is following their case a lot. So basically, remember when Apple like atop the trillion dollar mark, right was the first one to do that. Well, this is like the equivalent in Japan, following a 76% surge in quarterly operating profit and investor confidence and Toyota's post pandemic strategy and focus on next gen vehicles. So they plan to sell 10 point 4 million vehicles this year. So that's a record and raise their profit Outlook to 3034 point Make 7 billion this year. So investors are also betting on the company's Evie strategy, right, which a lot of people are now it's kind of like I told you so they're not there to you know, like they're too gentlemanly to talk about it that way. But that's the truth. We all know it. And get this over the past 12 months Toyota stock has surged more than 70% 24% increase just since the beginning of this year. So on a hot streak, man, look,

Kyle Mountsier: 5:29

I mean, we're like Toyota fanboys over here, we're just gonna admit the heck out of it right now. And look, whether you love their vehicles or not, they understand business understand production, they understand, like, everything from we want to make a car to it needs to be in a driveway. And then we want to keep that customer long term. And their dealers love them and the public loves them. It is a masterclass in my opinion, and let alone talk about their hybrid and EV strategy now that everybody's not like, you know what,

Paul J Daly: 6:05

I think we might kind of follow that over there. Yeah. Might be might be a thing. Yeah. I mean, how do you not be a fan of the business I mean, they invented manufacturing, the way we do it now to TPS Toyota Production System, Six Sigma, lean manufacturing, right. Like they transform the way we make things. When it comes to the vehicles. I like some of them, some of them feel kind of plasticky to me, but that doesn't matter. I'm a fan of the whole thing at the end of the whole thing. Speaking of being fans, I'm a big good to read. I'm interested to see how this matches up against auto News's next dealer Sentiment Survey. But for the first time since early 2022, so two years since first time in two years, CEOs across the US have reported a positive outlook overall on the economy, indicating a shift in sentiment towards growth and recovery. The Conference Board measured CEO confidence, and they said it got to 53 out of 100 in q1 of 2024. Reflecting that there's more optimism over pessimism. Most of these driven by reduced inflation, the strong labor market potential interest rate cuts, more than 1/3 of the CEOs now view the current economic conditions positively with a significant portion, expecting improvements in their industries over the next six months. 39% of CEOs, say improvements in the next six months, which is up from only 26%. Last quarter, so big shift in the last quarter. But despite the optimism CEOs also are remaining cautious, citing the 2024 presidential race, how could you not have a big question mark there regulatory changes, and you know, still continuing high interest rate as future challenges?

Kyle Mountsier: 7:43

You know, it is it's wild, like in auto obviously, we saw a pretty tough January. But overall, everybody's sentiment still in the industry is pretty strong, at least from what I've experienced positions that we had at NADA, and then coupled with a broad market sentiment, that's super strong. I think we're gonna have a really great 2024. And what some of the really cool stats is like the consumer spending stats that we've seen, it's not slowing down. It's it's normalizing. But at the same time, like you don't see this massive drop off in consumer spending. There's the prospect of interest rates coming down, which always drives a better economy. As far as like the the the consumer spending. So, you know, I don't know you're a CEO how you feel about it, Paul,

Paul J Daly: 8:32

I'm the wrong one to ask. Because I'm just optimistic by nature.

Kyle Mountsier: 8:37

I know you're a part of that. 53% Yeah, I

Paul J Daly: 8:40

would be I'm leading the charge, I believe. And you know what, I happen to think a lot of our friends are the same way. I agree. Right? I mean, David Long started a pandemic of positivity, right. Like during a pandemic, so I don't know, I'm hanging out with those cats. Hanging out with the positive cats. All right. Speaking of hanging out with different cats.

Unknown: 8:59

Segue, this

Paul J Daly: 9:00

is gonna be a fun one. He's first time we've ever done this least on the show. There you

Kyle Mountsier: 9:05

go. So Super Bowl 58 is just two days away. Taylor Swift verse, the San Francisco 40. Niners everybody. No, it's the Kansas City Chiefs. And while there's only two states super heavily invested in the outcome of the actual game, you know, basically the majority of the US is just figuring out whether or not they can both lose at this point. Everybody is obviously actively waiting, awaiting, hopefully a good commercial round up. Detroit's big three. They're not in it this year, which is pretty wild. Following a few years of really being in the commercial game. The industry will be full of commercials from the likes of Toyota, VW, Kia and BMW. You've got things like YouTube creator, pushing piston spot with Eli Manning, which we're gonna watch in a second. Christopher Walken being impersonated and a little bit of a cameo You know, so we just thought, you know, hey, why not? Why don't we give a little preview to exactly what's happening? We'll give a little reaction. Give her a little pre reaction. I'm sure we'll come around Monday with the little after after slot. But let's get watching them, Paul.

Paul J Daly: 10:13

Yeah. So this first one is one from Toyota. And this is basically the YouTube Creator pushing pistons trying to make content in like a studio around a Toyota and Elon Manning keeps just getting in the shot. So you lie. Not Elon. Oh, what I say Elon Manny.

Unknown: 10:32

Yeah, they're nothing. This right here is the 2024 total land cruiser. And hey, Eli, I'm filming a quick video here. Oh, can we cut that? What I'm really excited to show you guys is the interior of this land cruiser because it's not a good. No, hey, it's better to rely on outside to get these metal sliders, these 18 inch rims, so let's say rings, because I have two of them. Let's do another one. Hey, let me keep showing up in the shots you can get out that yeah, I can get out or you can get up.

Kyle Mountsier: 11:02

What I love about Eli and Peyton both of them I think they know they're terrible actors. And so they just oh, by the way, yes. Just like all the awkwardness, all the ridiculousness leaning into it, I thought was funny. Funny.

Paul J Daly: 11:16

I like it. And I like the new the new truck looks great. Little bit akin to the FJ Cruiser. But yeah, I mean, you throw YouTube creator into an acting slot and it doesn't always translate. It's kind of like when some musicians are like, we're gonna be actors. And he kind of always have that face on where it's like I'm in. I'm in a movie right now. Yep, exactly. Fun commercial. Alright, this next one is Toyota. You know, like taking a little play off what everybody calls the handle over the passenger side and l handle you know, and they they kind of name it a few different things as people if you're just listening, it's trucks driving through like very precarious off road situations. And the passenger in the vehicle is the one speaking the passenger is the one you're going to hear and the drivers just getting after it. So here's this one show you're trying to do. How long are you going to be gone? Commercial?

Kyle Mountsier: 12:09

Hold on, I got the right one. Hold on just a second. There it is. That's sort of the third one. Let's go to the third one. Okay, third

Paul J Daly: 12:17

one is we'll go back to the Toyota handle. The third one is probably my favorite because everybody knows Christopher Walken. And this magical way that he talks and deliver lines and so this is him going through kind of a day in the life where everyone he meets from the Bellman to the person doing the coffee and the drive thru to the waiter everyone's trying to talk to him like him and he's not not me.

Unknown: 12:41

Let's let's take a listen it's the real deal. 100% Electric it's the rental deal of course Enjoy your coffee careful talks. So cute. So adorable. Wow. We both know so you know you love nice Hello, Mr. Walken was does this table work for you? Yeah. Yeah, there's someone say yeah, that's for sure. That's that's sure to be Yeah. Oh

Paul J Daly: 13:33

sure. walks up Christopher walk answers away ultimate driving machine and so sad

Kyle Mountsier: 13:39

that they actually played this one already. Because this one would have been sublime to put out as the commercial like as he's about to walk which I'm guessing that's when they throw it out. Right? Like if it doesn't we're gonna be so disappointed. It would be silly like if he does that and then it goes right into him on stage like BMW totally played that wrong.

Paul J Daly: 14:01

I love the casting because Christopher Walken BMW it's really a brand to celebrity match like you can see that working right like he's getting into Kia doesn't work. Right. Yeah, he could do BMW Mercedes right some kind of Highline Genesis Genesis would have been great. Yeah. All right. Do we have the Toyota we got it we got right we're getting Thumbs Up All right, here we go.

Unknown: 14:28

Introducing the most powerful Tacoma Shut the front door handle also known as the seriously wrong that's me. Or the Whoa, whoa, whoa, whoa, whoa, handle and even know megusta handle standard on the new Toyota Tacoma. Fantastic job by Toyota. Fantastic.

Kyle Mountsier: 14:59

What's great about I don't typically you don't typically see Toyota leaning in on that type of like, saying the funny thing. Right, right doing the kind of avant garde commercials. So I think it's like, it's just a it's just an about face from what you typically see from them. And I love it. Yeah, I

Paul J Daly: 15:15

like you know, it's, it's not gonna like win best commercial, but it's a really entertaining commercial. I even like how they brought in the Spanish at the end, right? Because we know because we spent so much time in Toyota dealership that there's a huge Hispanic adoption of Toyotas. And so I think they just know what's up. Fred Leonard, shopping in the know megusta What's up? Yeah, that's and if you're a savant, or at least dialed in, when it comes to Spanish pronunciation, it's interesting how the pronunciation the guy had was actually the like, pronunciation from Spain. Right? Oh, it definitely was Gouda. But the announcer said no, my Gustavo. So we got a little both in there. That was on purpose or not, you know, they didn't think so. In a way to end up I don't know, do you have Who do you Who do you Who do you want in the Super Bowl? You probably don't care. Just I don't

Unknown: 16:04

care. You know, my buddy who's a chiefs fan always has been is coming over to watch it. So I'll probably you know, lean in on that. But I just want to see as few Taylor Swift is,

Paul J Daly: 16:14

I mean, she's the official mascot of the Kansas City Chiefs, so you're not getting over that one. Whatever you're doing. We hope you have fun together watching the Super Bowl and especially watching the car commercials. Hearing on this industry understanding it is so much more than cars. We'll see you tomorrow.

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