And Now We Vote, EV Credit Ignorance, Giant Drone Deliveries

October 31, 2023
It’s a no-so-spooky Tuesday as we talk about the final tentative agreement for the Big 3 that ends all striking for now. We also talk about the big gap in American’s awareness of EV tax credits, as well as a company using giant drones to deliver heavy loads.
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Show Notes with links:

The triple threat has been neutralized…maybe, as the UAW and GM have reached a tentative contract, concluding the strike against the Detroit 3. The agreement promises significant wage hikes and other benefits for workers in line with the previous deals with Ford and Stellantis

  • Picketing ended near midnight as the tentative contract doubles certain workers' pay immediately, with a 70% raise in starting wages by 2028.
  • Veteran workers can anticipate about a 33% pay rise over the contract's term, reaching $42.95 per hour.
  • Temporary workers with 90 days of experience will receive raises between 51% and 115%.
  • GM agreed to abolish a lower pay scale for specific divisions, and salaried workers will get a wage increase akin to hourly workers.
  • “We were relentless in our fight to win a record contract, and that is exactly what we accomplished.” - UAW President Shawn Fain.

There is one more hurdle…ratification. Fain's aggressive tactics and promises, while effective in negotiations, might backfire during the ratification process as some of the deals don't meet the high expectations he set (e.g., no 32-hour workweek, no defined benefit pensions for all).

  • There's speculation on whether the proposed deals will be approved by union members, especially given the high expectations and some disparities in the deals. If they aren't ratified, Fain's approach may be the primary reason.
  • Some voting blocs have a history of always voting no on the first contract
  • A simple majority is needed to pass

Despite the Inflation Reduction Act offering up to $7,500 in federal tax credits for EV purchases, about 40% of Americans remain completely unaware of the subsidies

  • A BlueLab Analytics survey found 40% of Americans are oblivious to the EV tax credits under the IRA.
  • Despite the results, the survey shows that Hispanic Americans indicate the highest preference of any group for buying an EV in the future, while Black Americans show the lowest preference. Women are slightly less likely to be planning for an EV purchase and they are much less aware of the EV tax credits, as Axios reports.
  • This data comes as Chevy finally unveiled its Equinox EV, slated to begin production in early 2024, with pre-orders starting next week.
  • Despite delays, the launch model, priced at $48,995, boasts features such as a 319-mile range and 150kW fast charging. By the end of 2024, a model priced at $34,995 with the same battery range will be introduced.

Offshore turbine company, Ørsted claims to be the first offshore wind firm globally to deploy autonomous giant drones for cargo delivery to turbines.

  • The drones, weighing 128 pounds and having an 8.5-foot wingspan, are being tested at the UK's Hornsea 1 offshore wind farm. They can carry cargo up to 150 pounds, which is suspended from the drone using a long cord.
  • Most importantly, the turbines do not need to be shut down when cargo is delivered
  • The drones are managed from existing crew transfer vessels and service operating vessels at Hornsea 1. The drone service provider, although not directly mentioned by Ørsted, is identified as Skylift, a UK firm specializing in offshore wind farms.
  • Hornsea 1, a 1.2-gigawatt offshore wind farm in the North Sea, houses 174 wind turbines, producing enough energy for over a million UK homes.

Paul Daly: 0:27It is not only Tuesday it is not only the last day of the month before November, but it's also Halloween and Kyle is dressed up. Like some Toothless who got punched in the face three times. We got some union things

Kyle Mountsier: 0:42

like this. Oh my so this is gonna get if you can't see it on the audio ears. I got the eyes.

Paul Daly: 0:54

I can see the face better see the face right there. I thought it was gonna be a pullover. Like where your eyes were through its eyes. I

Kyle Mountsier: 1:00

know. There's a lot of anticipation go down the back you got like there's like, there's like the spikes and wings and stuff on the back. So huh? Coming in hot. Oh, coming in hot to you.

Paul Daly: 1:13

What's Amanda gonna be?

Kyle Mountsier: 1:16

The Magic School?

Paul Daly: 1:18

Naturally, the best fit right? She's literally gonna be the entire bus. works. Yeah, like I don't know what that's just showed up. So

Kyle Mountsier: 1:28

I'm weird. This is that's exactly what happened. This just showed up. So

Paul Daly: 1:32

I'm wearing it. There are surely lots of people in dealerships across the country having a lot of fun. With Halloween to

Kyle Mountsier: 1:41

tag. You all better tag us in your LinkedIn or your Facebook photo? Send them to Maybe we'll throw a few in the day definitely

Paul Daly: 1:51

will we definitely will. Just every post that you make with your team or yourself at a dealership doing a car thing or some customers that are all dressed up. Please tag at a SOTU on LinkedIn, or what it was. What are we gonna Instagram can get automotive state of the automotive State of the Union. Just

Kyle Mountsier: 2:12

six letter five bags, it's five letters to I know it's less than so I put it on

Paul Daly: 2:17

my hat just so I remember. Well, I have the cheapest of the cheap, cheap version of the Halloween when you don't have a Halloween costume. You just put on a football jersey.

Kyle Mountsier: 2:26

That's all you got to do.

Paul Daly: 2:29

When you see a football player, this is my favorite football jersey ever because

Kyle Mountsier: 2:34

it says a soda icon on the back thanks to Steven patella

Paul Daly: 2:37

like soda con 2022. And I even had this one signed by Brian Westbrook because at the venue where we were there. So I had explained to him why I wanted him to sign a jersey that wasn't his number. And he was cool. It was actually worked out really good. Because we started talking business we ended up getting on the Zoom. Like a few weeks later. He's He's a really awesome guy. But he was an eagle. Hey, we have a lot of things coming up. Chuck Kyle and I will be traveling around quite a bit over the next several weeks. November is definitely going to be a busy month in automotive, a lot of events, a lot of things. We are going to be at used car week, which is next

Kyle Mountsier: 3:12

week. Next week. Oh Enix Arizona, it's gonna be amazing. And then

Paul Daly: 3:17

we're gonna so we're going from Phoenix, Arizona, and then a little break in for the weekend. And then we're heading to MRC Mater retailing conference, Brian patches conference in Palm Beach. So if you're going to be an either of those two, make sure you come and say hi, we'll probably be talking to some people probably doing some interviews, and just you know, learn and share and grow in the community. And spend some time with you if you can be there. If you're not there. We'll try to bring you as much as we can from those things so you can kind of participate as well. What else what's dropping today new episode of

Kyle Mountsier: 3:49

the wheelhouse which is hosted by Daniel go there if you haven't caught the wheelhouse you have to. We push it on all podcast platforms and on LinkedIn on Facebook. I think Twitter YouTube at 1pm Eastern. The topic today is What are things we should stop saying Daniel will have Gen. Suzuki last Porsche standard ng to fail some just really strong operators commenting on what's going on in the business right now.

Paul Daly: 4:18

There you go. That's kind of important. Yeah, we have more than cars episode to launch more of the We could just give you more things but we have a lot going on. But we got to talk about some news. Spent a lot of time talking about costumes today which is worth it. We did. You gotta do it. Speaking of trick or treat. That's a good segue. Gotta use this button as much as I can wear it out, because we can't we can't use until next year. The Triple Threat has been neutralized maybe as the UAW and GM have reached a tentative contract, concluding the strike against the Detroit big three. The agreement promises significant wage hikes and other benefits for workers in line with the previous deals reached with Ford and stiletto So picketing ended near midnight, and the tentative contract will double certains. Certain workers pay immediately. That's pretty good with a 70% Raise, start in starting wages by 2028. So it sounds like they're doing okay veteran workers can anticipate about a 33% pay raise over the contracts term, reaching a high of 40 to 95 per hour, temporary workers and 90 days of experience, we'll see raises between 51 and get this 115%. Just for our x just cited. So yeah, GM is doing a few other things. And Shawn fain says, quote, We were relentless in our fight to win a record contract. And that is exactly what we have accomplished.

Kyle Mountsier: 5:45

I agree. I mean, I like I'm honestly surprised at how big of a change it was from like the first few offers, I would not have expected that level with the first offer was the first offer was like, it was like 11, or 12%. And then there were these quick little, like, everybody kind of fought to get to 15. And the 15% raises, along with a lot of the other things like the cola and and the ancillary benefits, but to go from that 11 or 12% to 25%. Across the board with some people getting in these, like 70 115% changes. That's a well,

Paul Daly: 6:25

there's a little there's a little texture to the story that Yeah, well, before we get to the last hurdle, there was an Wall Street Journal article that we just didn't have time to include today. But it talked about three industry outsiders, from basically politics that have been really shone Fanes during their like 30s like so young, young, troublemakers kind of thing. Worked on Bernie with Bernie Sanders campaign, and AOC. And I can't remember the third one. But it makes all of a sudden, a lot more sense. Why the combative nature took front and like why we're talking about eating the rich. What like after I saw that texture, I'm like, I thought this playbook felt familiar. Yeah, but there's one more hurdle to getting all this across the line. And that is ratification, feigns aggressive tactics and promises, while effective in negotiations might backfire. During the ratification process, because he promised a lot of big news 32 hour work weeks, no, you know, there are pension for everybody. Right? None of that is a reality. Um, so there's speculation on like, you know, this could actually get voted down.

Kyle Mountsier: 7:36

Yeah, like, what happens if everybody's like what you told us, You were gonna get bought, you know, it's Oh, yeah. What

Paul Daly: 7:42

happened in the hand when the children start acting a little bit like dad, and all of a sudden dad's like, oh,

Kyle Mountsier: 7:48

I created this so I just hope that doesn't happen. I know what the good that you got and keep rolling and just get back to work. You know, I don't

Paul Daly: 7:56

see any of those 115% wage wage boost temporary workers vote no,

Kyle Mountsier: 8:01

I just can't imagine you just cannot imagine they're ready

Paul Daly: 8:05

to go. I mean, there are some it did say in the article, there are some voting blocks. Who by principle, always every time vote no on the first contract. Just it's like we never vote yes. On the first contract. And there's a part of me that takes like if that happens, feign might kind of get like a little smile and be like, I don't know what you want me to do. I tried to get I couldn't do it. I can't imagine if that was Yeah. Because like

Kyle Mountsier: 8:26

you think that just think of his words over the last like three to four days. He's like, look, we did it. That's his message. Like he's trying to get he's trying to get it across the line, right?

Paul Daly: 8:36

I mean, it could

Kyle Mountsier: 8:36

I can't imagine it's got to be tiring. Putting in those long nights. I mean, angry.

Paul Daly: 8:42

Being angry is exhausting, right. Just put it that way. You're being angry and frustrated and, and constantly stoking. negative rhetoric actually is emotionally draining. Here's the deal, you only need a simple majority to pass according to the rules, so many 50% plus one person to get it across. I'm optimistic but I'm up ain't over till it's over. Speaking of stories that don't have much to do with that one. good segue just have to use the button to get is like Tuesday, despite the inflation Reduction Act, offering up to$7,500 in federal tax credits. A new survey shows that 40% of Americans are completely unaware that it even exists. Despite the results. You know, survey shows that Hispanic Americans indicate the highest preference group of any to buy an Eevee in the future that surprised me. The black Americans show the lowest preference women are slightly less likely to be planning for an Eevee purchase and they are much less aware of the Evie tax credits This is an Axios report. This data comes a Chevy finally unveiled the equinox Evie that has been talking about so much. And you know typical like it's gonna be a $30,000 SUV, but here's one that costs 50

Kyle Mountsier: 9:58

Wow, yeah, I mean Well, first of all, we know this is the case, we go out around the country. And we're like, Would you ever buy an Eevee?

Paul Daly: 10:07

No, this is it. What's that? What's an Eevee? Right? Like, just so Evie tax credit? Yeah, like, like good

Kyle Mountsier: 10:15

luck. And I can only imagine a 40% are completely unaware. What's the next 40%? Well, I like that's out there. But I have no clue what that means for me, you know, like, why that would trend my influence to potentially go to an Eevee. So the knowledge gap is huge. So I would like for dealers, we, if you have a large amount of EVs, it's not just like, hey, come buy our car. There's an education matrix to getting people to the point of being willing to look at an Eevee because of the tax credits, like all of that has to be in the consideration into the research in the shopping face.

Paul Daly: 10:55

No, no doubt, no doubt. Well, I mean, a lot of times you think you know what people know? Right? And it's our little bubble. So we talk about it all the time. But it just goes to show you like, almost half of everybody else has no idea,

Kyle Mountsier: 11:07

right? Hey, real real quick. Did you see that the vinfast pricing model and the fact that the way that they're going to change some over the the final build assembly type stuff is done? No. has the potential to have a vinfast vehicle in like, the low teens. After the tax credit. No way. It's like stupid the way it works out. Yeah. Well, we'll do the math on another show for this to get more than 80 miles of range, though. Like,

Paul Daly: 11:33

I don't know. Remember, they released this big deal. It's like 160 Like what in though? Hey, I think we are going to see some more innovations and real creative ways. And vinfast I mean, they got some funding, and they got some but now they have some dealers now they got some dealers Hey, dealers in the mix all of a sudden it's like you walk in like with the gang like we can beat them and then like the rest of the gang like files in from the side streets. It's like, maybe we if so dealers in the mix of my whole opinions. Like that fast. Man things. Speaking of things changing.

Kyle Mountsier: 12:11

Scott's a good segue three was a good segue. He was right. They said that, hey, the off shine, the off the off shine the off shore turbine company Orsted claims to be the first offshore wind firm globally to deploy autonomous giant drones for cargo delivery to the turbines. The drones are 128 pounds and have an eight and a half foot wingspan and are being tested at the UK horn see one offshore wind farm they can carry cargo up to 150 pounds. Yeah, that's a lot spended from the drone using a long cord. So this what this allows is that the turbines don't have to be shut down during the process. And so if there is someone working on them, or they need parts, turbines can stay on people wait thing gets dropped off on a little platform you can see the video if you're watching right now of what happens. So now we've got cargo delivery from a drone to an offshore

Paul Daly: 13:15

Yeah, they farm Yeah, that's it seems like the best way if you were you're listening to music, you were hearing from this great video, go back and watch the video of this giant drone flying with this cool music. And like literally a dangling this packet like this. I don't know what kind of looks like a Coast Guard rescue peg, doesn't it. And so it was like really long drops it on the platform releases the string, but think about 100. And well first of all, like 100 and the drones like 140 pounds itself. Right. So this is like a vehicle vehicle. But thinking of 150 pounds moving that around. Think about the change in mobility, right? Like Steve Greenfield talks about mobility a lot more. Although this is an automotive related people are starting to reimagine the way they move around and like in a small way, right? You think reimagining a powertrain like an Eevee. So I think it does tie all the way back and like things are progressing apps, we're moving things around in different ways. And watching 150 pounds fly through the air over the ocean and be dropped on the I mean, it's pretty magical.

Kyle Mountsier: 14:17

I love it. Like, here's the thing, this is my thought if they can do that. How far is the walk to parts delivery via drones? Right? Like, obviously, there's a lot of air control. Yeah, that's the big, that's pilots all that type of stuff when when you're around a city and there's wires and there's other things to contend with. Right? But if this is like, that's, that's like the future is out there, right? less obstruction, you're out over the water. It's major, you know, major, like large companies, that it's always a walk back to watch out for that innovation, coming to a more like residential micro micro commercial environment. And so just like watch out for that come

Paul Daly: 15:00

I mean, he'd probably use that between factories when they're closer together might be a shorter deployment. How about like, first person drones inside the dealership delivering oil filters? No, that's not No, not a parts guy. Yeah. Have you seen the pranks people plan each other in the service department. They're never let in draw me over here. Here's one of my favorite ones. If you've never worked at a service department or been around, you take a windshield washer fluid bottle, and you put an air hose in it, and you take the cap shot and you seal the cap onto the bottle. And then you turn the air off at the valve and then you put it near somebody's car. And then when they walk over, you turn the air on and it explodes that thing faster than you can imagine. And, you know, so you can imagine it's dangerous. It's hilarious. It's all the things

Kyle Mountsier: 15:51

that when OSHA came through,

Paul Daly: 15:53

yeah, I mean, this is a hypothetical, not a recommendation. I've never seen it happen. Never done it in my life. Nathan, rolling disclaimer, roll it. Hey, whatever you're doing today, we hope you enjoy your time get out there. Get involved with the community. Everybody's out today. Everybody's triggered treat and care about people sell some cars make a little bit of money too.

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