Electric Deals, Jersey Green, Keyless Cars

Paul J Daly: 0:33

Tuesday, November 28. It feels like Thanksgiving is actually so long ago at this point. We get about electric deals Jersey green, not what you think. And cumulus cars. By the way, people really want to spoiler alert. I can't wait for keyless cars.

‍Kyle Mountsier: 0:53

I mean, they kind of already exist. But there's a

Paul J Daly: 0:55

lot of things already exist that I've never gotten to partake of. Right. Exactly.

Kyle Mountsier: 1:00

That's fair. Yes.

Paul J Daly: 1:01

Lots of things exist in Dubai. I've never been there never been there never been to go there. But I would love to go to Dubai at some point. With let's just do it.

Kyle Mountsier: 1:10

We actually were we in remember the Uber guy.

Paul J Daly: 1:17

You gotta paint that picture. Kyle and I are in Scottsdale, use car week, we get into an Uber and I don't know what it is, man. But whenever Kyle calls the Uber it just as a different experience, though, and I it just, they're just attached to his provider. It opens up, it smells like, let's just say it smells very organic. In the Uber. And we're driving and, and the dudes real chill. He's really laid back. And like, you know, we're both like, I don't know, because our last Uber ride prior to that we literally almost died the last time when a guy speeding into the little split between the on ramp and the actual highway and cars gone. Stop, stop, stop, stop. It was crazy. You're not doing well. So either way, this guy all of a sudden is like starting to like, talk about like these, like travel

Kyle Mountsier: 2:03

trips that he goes on. And I mean, dude, looks like

Paul J Daly: 2:06

he just got done playing NBA Jam for seven hours, right? Like the second version. And he's like, oh, yeah, I met my family in Europe. We went here. He's like, uh, you know, the one of the most incredible places was Dubai. And he starts talking about Dubai. And I just like glad to get each other like,

Kyle Mountsier: 2:20

the funny thing was, is he was like, no, it's actually fairly inexpensive. And he went on to explain how basically he did all of Dubai for like less than three grand, including his travel. So I don't know how he pulled that off. But kudos to him.

Paul J Daly: 2:32

I know, I know, we've done some that it's so much fun, just like getting to go places and bring experiences back to share with you or share with one another. And that really is kind of the essence of what a SOTU is like, how can we share experiences with one another, broaden our horizons and be better businesses, be better people care for our people more. One of the ways we're sharing education and experience is through our webinar series. So to edge we've tried to revamp the webinar experience from like 50 minutes and you're not even listening anymore. You haven't been listening for 30 minutes, and you're not going to watch the recording anyway, everybody knows that's how it goes. So we cut the format down into a very fast paced 20 to 30 minutes of webinar information, conversation questions, some laughs and our next one is going to be on December 13. So just about two weeks from now, with our friends at upstart going to talk about the power of connected auto retailing, how we're getting all those pieces together massive conversation all across marketing, all across websites, right? How are we integrating all this stuff from CRMs and people's behaviors here in there upstart? They're awesome at it. They're sharing some insights that they've learned from their data from their experience, and we hope you can join us. You can just do that by going to a CIO two.com. Scroll up just a little bit. You'll see the picture of a soda wedge webinars there. Sign up con, I will be there. We'd love to hang out with you for a little bit. There we go. All right. We do want to get into what are we doing? All right. All right. We got some fun news. Okay. Oh, here's the big conversation right now amid increasing US production and surplus inventory. Imagine those two words coming out of our mouths a year ago, EVs are seeing significant discounts. However, this buyer's market might not last long so OEMs from for the Tesla has been slashing Evie prices in response to a surplus in the US some discounts as much as now 31% making them very competitively priced against their gas powered counterparts. For instance, the BMW IX this one isn't 30,000 with advanced features and touch responsive sunroof and all this cool stuff is right now 70% Discount still a little rich for my blood at 80,001 95. But also you have the Nissan Aria 18% discounts down the 36 Six while the Hyundai Kona is kind of like winning winning the race right now. This is in Atlanta, there's a Hyundai Kona that is 31% discounted price at 29 Nine that sounds like a something that Evie

Kyle Mountsier: 4:57

a couple of things. One Yesterday you said that you better not email me unless you got 30% discounts Well, that, that the

Paul J Daly: 5:06

article is like a couple days old, they got something

Kyle Mountsier: 5:09

to talk about and get the email yet. Yeah, for some reason they didn't email me. But this is this is wild to see this level of deep discounts like these are things that we saw, you know, pre COVID With rebates and incentives and dealer discounts at that level. When the market has to right size, the Evie. Inventory right now, we were approaching a year day supply. So I'm interested to see how quickly the market can write itself. One, and if it can, and get back on solid ground and start to understand what supply and demand looks like with ease. Because, like, at this point, there's been so much invested in it that if it doesn't succeed, it'll have a massive like, it'll hurt dealers OEMs and end the entire supply chain. So it's interesting moves here. Well,

Paul J Daly: 6:07

it's a good quote from new voice from from our halls. Elaine buckberg, a former economist at General Motors and a senior fellow at Harvard knows a thing or two. She says the story is being written that Evie, the Evie market is falling apart, are just dead wrong. And just obviously alluding to the fact it's just a supply glut right now, and that's what's driving the discounting. You know, Evey sales are up two and a half times in the last 12 months, which is 250% For those of you keeping track. So mean things are changing. EVs are moving forward and you know, legislation is probably what got us here and speaking of legislation,

Kyle Mountsier: 6:46

the Segway

Paul J Daly: 6:50

All right, 2035 may just be the new 2030 Kyle,

Kyle Mountsier: 6:54

we're gonna have to retire the button. Let's play 20

Paul J Daly: 7:00

Farewell Tour. We had a good run had a good Romans 2035 is just not going to come out the same when you see it that way. adjoining states like California, New York and Colorado, New Jersey is now doing what it can to speed up its Evie transition and has announced a ban on manufacture sales of new gasoline vehicles by the year 2035. So they're adopting. Yeah, full ban. Full ban east coast. Let's keep up with California, New Jersey adopts their advanced clean caliphs. Kelly's advanced clean cars to regulation aiming for 100% zero emission new vehicle sales by 2035. So the rule mandates and here's like it's like a stair step approach. This is the 43% of cars produced by 2027 must be zero emission

Kyle Mountsier: 7:50

2027 Is not that far away. It's not that far away,

Paul J Daly: 7:54

to 68% by 2030. So it's important to note, this doesn't obviously put any restrictions or regulations or obligations on consumers or dealers. But dealers can only sell what they can give them by the OEMs. New Jersey coalition of automotive retailers, we gotta get in touch with them, by the way, criticizes the move, citing concerns over consumer choice at afford availability, arguing the mandate could significantly disrupt the market impacting consumers and dealers negatively. Yeah,

Kyle Mountsier: 8:23

I think that that's a great way of putting that is will this type of move, really, in the end impact the consumer ability to purchase? Right? Well, the pricing be there with your access to charging networks will all have that support a 43% sales of all new vehicles in 2027? Will it be event? Will it be ready? That's only four years away? We're talking about these manufacturers that are maybe five to 10% Some manufacturers evey sales if that. Yeah. Moving to 43% in that timeline, and the market being ready for it.

Paul J Daly: 9:02

Yeah. And it is not like the annual average is 10%. But if you look at it, California is like 28%. Right. And you think you think of all the dynamics which would make California higher right access to infrastructure, a general disposition, that electric vehicle lifestyle coincides with New Jersey, it's in the Northeast if you didn't notice a couple other complications there. So yeah, I mean, they're not additional weight injuries at 10% That type of housing in yours aka vertical vertical housing or,

Kyle Mountsier: 9:35

I mean, I know that I know my parking routes are in Nutley New Jersey, which is like kind of a an older, pristine, like old money town. Just the the electrical infrastructure alone in that town. I know. can't support it right now. And I have

Paul J Daly: 9:52

like the outlets with two plugs. They don't even have the ground. No,

Kyle Mountsier: 9:55

they don't have the ground like and that's one of the most fluid cities in New Jersey. And they wouldn't like the the electrical infrastructure would have to get there first. Yeah. So

Paul J Daly: 10:06

I don't know. Well, we'll see we know where thus far legislation has led us when that's driving, or that's superseding consumer demand. So we'll see what happens with New Jersey. But the good news is, New Jersey isn't that far from another state, Pennsylvania. You didn't get what you need in Pennsylvania always. Yeah.

Kyle Mountsier: 10:28

There we go. Well, speaking of getting what Paul needs oh, I need some digital keys in my life. On some digital keys. Imagine a world where losing your key doesn't actually matter. Some of the brightest minds are doing just that, as digital keys are steadily making their way to center stage. adoption is growing questions around technology choices, security and compatibility remain. Daniel Knobloch, the Vice President and Board member at car Connectivity Consortium who knew that even existed, who also worked for over seven years as a wireless systems architect at BMW talks about the emerging tech on an interview that we found on the verge, the conversation that with him centered around like the discovery of technology, and what technology is going to be most used as we move forward, we've seen implementations around Bluetooth and NFC. So there's kind of these three standards that are making their way and one is NFC. So that stands for Near Field Communication. If you've ever tapped like your, your, your wallet, or your Google Pay, you've used NFC or ultra wide brand, which allows for connectivity over longer distances than NFC so that people can unlock or lock their car digitally. And then the other one is Bluetooth, which right now is probably the most use in key technologies. But it allows for like that moderate data, data exchange, moderate range data exchange, so that you can lock unlock vehicle and do that within range. So it's it's a it's still like, very new, you know, I've got the ability to lock unlock and start my car, my Mazda from my phone like at least right yeah, at based, but not like, but

Paul J Daly: 12:12

you can't get in and drive it away. Not without it. Right. You could start it you could get in you can unlock it, you could start it, right people asking, you know what happens if the battery dies, if you have the NFC, like where the chip is built into the phone, it will work. Even if the battery's dead, just like I mean, that's very familiar thing like the key fob, right? If the battery's dead, you can actually push the start button with the key fob. And the chip is close enough for it to read by luck. All I'm saying is this. I don't think it's going to be any less secure than a key fob right now. Because I've seen how people can repeat those things. And if it's got to be the chip that's in your phone, it knows how close that chip is to the vehicle, like it's not going to start if you're sitting in the cafe in your cars in the parking space, because it knows you're not in the car. And the second I can get rid of this. Right? I get rid of these. I'm just happy man.

Kyle Mountsier: 12:58

I think the whole point of this is is discovering like the mix of technologies because right now the the cars that are using NFC still require you to pull that phone out of your out of your pocket. And that's the thing that don't want that either, right? Yeah. You don't want that either. Because you've gotten used to leaving your keys in your pocket. Yeah, what's the combination phone

Paul J Daly: 13:17

usually comes out of the pocket anyway. Let's be honest, with their phone in their pocket, the second you realize your drive with your phone in your pocket. Get this thing out of here. You know what, but for women, often it's in a purse or bag anyway. Right? And it's already out like that. It seems like I'm actually surprised we're not further along in this. I know, right? Because it seems like a lot of other things just happen this way. Like by building when I walk into the studio here, right? You get close and the little thing in there it goes clean, right? I don't need to hold the thing up to the nose on there. So I mean, it's just like,

Kyle Mountsier: 13:50

Yeah, but Paul, Paul stopped building. Paul, I went to Walmart. Oh, here. You can't use apple. I still don't have a wallet. So it's because whoever pull it off, what is this?

Paul J Daly: 14:03

Because whatever company's got that contract, has it so dialed in with legal when they signed it, that they're like, I know that you're the biggest retailer. I know that everybody wants it. I know it's even way more secure. But guess what? We're here until you know we're gonna I don't know. I don't know when they have that contract. That 30 year contract, like boss. Oh, well, whatever's going on with you today. We help you get out there. You implement some new ideas. You share some experiences with some other people so that we can serve people better. We can sell more cars make more money and love on some folks

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