Ending EV Credits, 500k Retirees Re-Enter the Workforce, Facebook Flips Switch On Podcasts

May 3, 2022
Today we are talking about identifying the things we both can and can’t control as we talk about EV credits ending for Toyota, a growing number of retirees getting back into the workforce due to rising costs, and Facebook calling it quits on its podcast platform just one year after launch.
Listen On

Toyota is the next manufacturer in line to expend their federal EV tax credit following Tesla and GM

  1. $7,500 tax credit to buyers of fully or partly electric cars, but only up to 200,000 per company
  2.  183,000 as of the end of 2021, according to an analysis by BloombergNEF (8,421 last quarter
  3. A phase-out process starts two quarters after the cap is reached, halving the incentive for the next 2 quarters Toyota's credit could be reduced to $3,750 as soon as Jan. 1, 2023
  4. Toyota, Tesla, GM are lobbying for an extension but opposed to an additional $4500 credit for unionized manufacturers. The additional amount has reached much opposition since there is already high demand and backlog for EVs
  5. Take away for Auto Dealers: It’s good to pay attention to the air war, but you will always win or lose based on the ground game YOU control

Workers over 55 are re-entering the workforce citing inflation as main cause

  1. “labor force participation rate”,  over 55 rose to 38.9% in March from 38.4% in October
  2. Over half a million people
  3. Veronica, retired S.C. school teacher is reluctantly looking for a job as anEducational consultant
  4. Has been babysitting grandchildren but that’s not providing enough money now
  5. Certainly not looking for full time, but predicts she will need to work several more years
  6. Bruce (64) has been retired for a year, misses work but cites costs as a primary reason to get back into his specialized field of compliance and information management
  7. Likes the structure and routine of work, and realizes the extra money is becoming more of a necessity than a luxury
  8. Take away for Auto Dealers: Where can you leverage this growing labor force in places that require some maturity, stability, and gratitude. 

Facebook is rolling up it’s podcast platform a year after launch as it reevaluates audio strategy

  1. Facebook spokesperson Adelaide Coronado told The Verge that the changes would “simplify” the company’s audio offerings. “WE’VE DECIDED TO SIMPLIFY OUR SUITE OF AUDIO TOOLS ON FACEBOOK. After a year of learning and iterating on audio-first experiences, we’ve decided to simplify our suite of audio tools on Facebook,” said Coronado. “We’re constantly evaluating the features we offer so we can focus on the most meaningful experiences.”
  2. Take away for Auto Dealers: be willing to fail, but fail fast and fail forward. Even the largest, most well resourced companies in the world fail often.


Kyle Mountsier,Paul Daly


Paul Daly 01:05

Goodmorning troublemakers. It is Tuesday May 3 all the nerds are excited fortomorrow but we'll talk about today we're talking about EV credit to ending 500,000Retirees reentering the workforce. Let's go to the people really want to know,man, is what surprised me stop this


Kyle Mountsier 01:23

man.Wait a second. Repeat cracking on the nerds before May 4 is even here, man.Unbelievable.


Paul Daly 01:31

Youknow, I think the concentration of nerds has the concentration of nerds hasdefinitely increased within the walls of asoto. So I think I'm just more awareof the excitement, anticipatory energy coming out than before. It's a big it iswe don't worlds we don't only have the nerds in the halls, but you know, wehave spouses of the nerds. There's just a broad level of excitement for me thefourth, so everyone. Already on my mind, well, I typed in the date today.


Kyle Mountsier 02:08

podcastis stuff like bah, bah, bah scrolling scrolling thing,


Paul Daly 02:15

oh,maybe a parody video. We can vilify people and we can make people hear. Oh,that would be sad. Which I think that comment may have sent all our residentnerds scrambling for ideas right now I know exactly what to do.


Kyle Mountsier 02:30

I mean,I get it. Alright, let's get into it. Let's get into it.


Paul Daly 02:36

Alright,so today, today, a few things came up and forth you that we just want to remindyou that just less than a week away may 9 Monday, we have an awesome event.It's our first one of the year. So we're super excited for it may 9, Mondaynight, first night at Digital dealer. We are having the asoto family reunionremix, a remix of last year's event, which was a huge hit. I mean, it was oneto remember. I'm still literally still seeing selfie pictures circulate fromthat event on LinkedIn. Like


Kyle Mountsier 03:04

forsure. Yeah. And now they're coming back. Because it's like, remember last year,here we go. That's


Paul Daly 03:08

right.That's right. And so we thought yesterday, you know, your tickets are selling,we still have tickets left. Dealers are free this year, which is different thanit was last year actually different than it has been for all of our events withdealerships how to pay full price, our friends at auto phi paid for all thedealer tickets. So if you're a dealer or dealership employee, you can come forfree. And it's not just food and drinks, we're gonna have awesome food andawesome drinks, but we have a retail swag experience. We're giving away cashfor gas money. We're gonna have some live show hosted live stream, so it'sgonna be a big step up, it's a remix, right, big step up from last year,


Kyle Mountsier 03:42

it'sgoing to be a ton of fun. So and what I think, you know, what we've started torealize is that wherever these events are across the US, right, whether we'rewhether we're a digital dealer or doing our own thing, or whatever it is, westarted to recognize Wow, the tapping into the local tapestry of dealers is soimportant so if you know of any dealers or dealer personnel that are actuallyin Tampa, even if they're not attending dealer right Greater Tampa, St. Petearea, even if they're not attending digital dealer, that's that's what's socool about this event is it's a it's a low barrier of entry opportunity to bearound the great thinkers in automotive, so just send them the link tell themto come on get get get to get down next to the water on American social thatnight. And I mean, we know people that are flying in just for that just for theevents really and not going to digital dealer. So goodness, a local people cancome on by. That's why we want to be there. We want to serve the community andserve the dealer community no matter where we're at. Yeah, so


Paul Daly 04:41

ifyou're a vendor and local rep, even if you know right now any dealershipemployee, whether that's an owner, a manager, service writer, send them thelink, tell them hey, there's this thing going on your dealer employee, you cango for free. We'd love to welcome them into this community that maybe get theminto the community right like the more people that are thinking this way aboutthe industry and thinking a little more deeply, a little more broadly about theindustry. We all know that makes it all better. So hey, right now if you knowsomebody send him a text, you know, let him know about the event, tell them geta ticket for free if they work at a dealer, and it's not just free. You knowwhat I mean? Like, we're not going to try to sell them a timeshare. I'm saying,


Kyle Mountsier 05:19

we'reactually we've given them we're letting them in free giving them free food,free drinks, and free swag. And literally, no,


Paul Daly 05:27

all wewant is for them to be better. And to take some of that energy back to theirstore on Tuesday. The only requirement,


Kyle Mountsier 05:35

Paul,you're such a guy, what a guy.


Paul Daly 05:40

A guy.Let's talk about a little news today. Toyota is next in line to lose the Eeveecredit the $7,500 Evie credit that has been going around because if youremember when it initially was put to place, it had a vehicle limit, you canonly claim the credit for 200,000 vehicles. Toyota is next in line, Tesla wasthe first one to hit it. Obviously, all they sell is EVs. And who was second init, somebody else had it.


Kyle Mountsier 06:09

Would itbe Nissan has Nissan already had it?


Paul Daly 06:12

I haveno clue. Maybe GM? Did GM. I think GM had yet to have gone. I'll check. I'llcheck the article. At some point. Yeah, so basically, they're projecting thatToyota will be at 183,000 EVs by the end of 2021. That's where they were andwhere they landed, you know, 8400 of those were last quarter. So they're reallyrocketing to that, you know, and what happens is, after you hit 200,000, itactually starts to phase out, the credit gets halved for the next quarter, andthen half again, for the second quarter after you hit the mark. And so some GMTesla, Toyota, they're lobbying for an extension, right? saying, like, hey, weneed to extend this because if you think about it, the credit was really toincentivize people to get the vehicle when there was a lot of confusion andquestioning about it, to incentivize manufacturers to produce more of these.But as we know, now, manufacturers by 2030, great. But what are you


Kyle Mountsier 07:04



Paul Daly 07:06

everyeverybody's in the game now. So they're saying, hey, let's extend it, becausethe early adopters are actually going to be now at a disadvantage, the ones whodid all the work to try to get the early adoption. So they're trying to doextended, but they are also lobbying against additional credits on top of that,Yeah, isn't that something?


Kyle Mountsier  07:25

Well,and, you know, actually, Elon has come out a few times and been like this, it'sactually not good for the Eevee market to continue to extend all of thecredits. Because what it does is it is it makes it so that when they do goaway, there's less of an affinity to the Eevee market, because there's suchaggressive credits out there. I mean, I remember back, you know, when when Iwas selling lease back in the day, you could get up to $10,000 in creditsbecause of, like, different state and federal opportunities in Tennessee. Andso, you know, that totally devalues the vehicle. You know, some people only gotin because it was it was that. And so I think that there's some level, there's,there's some somewhere in between still at this point, because there stillneeds to be incentive to go there. You know, especially thinking like, youknow, I've been talking to Brian Kramer and Jerry Kelway, like just thinkingabout what people have to pay to get something installed in their home. That's,


Paul Daly 08:19

I mean,I feel like that makes a rational, a rational incentive. Right, right. If youbuy an Eevee like having it because it's almost like an infrastructure, incest.If you have it installed in your home, guess what, when you move and sell thathome, it's already equipped with an Eevee charging station, right? So I mean,which worked for people who own homes, but apartment living and stuff likethat, and not so Exactly. Not so excited, like that stock was like, we don'thave a 3000 foot extension


Kyle Mountsier 08:45

to go tothe to go to the 10th floor, the window. Yep.


Paul Daly 08:51

So like,I agree, it's, it's one of those things where it creates a false a false floorin the market. And it kind of messes up capitalism. Right, which in the end,right, somebody's left holding that bag. Everybody's left holding the bag. Andobviously, there's a lot of momentum, we have EV backlog orders, right? There'sno shortage of demand. Right. So and there's no shortage of attention on it. So


Kyle Mountsier 09:12

I thinkthat we actually, we had an article in the pushback email this morning about abill that's about set, well, that is getting pushed into being signed thatwould throw billions of dollars into EV infrastructure, right. And so it'sreally interesting that that you've got like this continued need for governmentintervention in order to see EVs take to have a foothold, right, because theinfrastructure is so deep on the internal combustion on the gas level, to speedit up, like everyone's talking 2030. And I think that that's just so quick. Andso the only way to do it is continue to incentivize both the private and publicsector to get everything ready for any future.


Paul Daly 10:00

Yeah,and the jury's out on like whether or not we'll be able to get there. We'vetalked about that before. big takeaway, we think for dealers is that it's goodto pay attention to the air war, right? What's going on at the top levels. Butreally, you're always going to win or lose based on the ground game that youcontrol. Yes, right. Exactly. Yep. Don't make a business on incentives. Don'tmake a business on inventory levels. Right. You make a business on everythingelse.


Kyle Mountsier 10:24

Yep.Exactly. Nissan dealers know this all too well. So yeah, if you're a Nissandealer, and you've been a Nissan dealer for longer than seven years, you knowexactly what I mean.


Paul Daly 10:37

Mymother visited over the weekend, and when she came up, she rented a rogue likea new Rogue. Yeah, that's suckers. Nice.


Kyle Mountsier 10:43

Yeah,yeah, they changed the game car for sure. Yeah, freaked


Paul Daly 10:47

her out.She was like, I didn't know what it was doing. It was fighting me on the road.It's like, well, it was kind of like, it wasn't fighting her. It was fightingher to stay in the lane, I guess. supposed to stay. Speaking of workers over 55


Kyle Mountsier 11:04

Did youprep that one audit


Paul Daly 11:06

justcame to you a row just came up as a lot. New study or new data came out. Thisis from a Wall Street Journal podcast that workers over 55 years old, areactually re entering the workforce for the first time in a really long time,what they call the labor participation rate of that demographic went up to38.9% from 38 4.4%. Now I know you're saying that's not a lot. But there's alot of people point 5%. Right. But that equals half a million people who havereentered the workforce, many of them citing inflation and rising costs, andthen rethinking their retirement. So that number typically stay steady or goesdown, which is why the reversal and experts are saying they expect it tocontinue to rise to people they focused on in this podcast interview one namedVeronica have retired South Carolina schoolteacher, she's reluctantly lookingfor a job as an educational consultant. She was a teacher, she has a history inthat. She's basically been babysitting her grandchildren, right for some extramoney, but now with the costs, rising fuel costs, food costs, et cetera, etcetera, et cetera. She's like, she's reluctant. But she's like, I have to goback to the workforce. If I want like to maintain what you're


Kyle Mountsier 12:27

tellingme is everyone in South Carolina should go look on indeed for a young lady orlady named Veronica, and find out if she wants to be a training manager fortheir dealership. Is that what you're trying to tell me back? Lee? I see whatexactly what


Paul Daly 12:42

I'msaying. Because like, she's, she doesn't want a nine to five. Right? She didthat. But she does want to like contribute somewhere. She does have a lot ofexperience. She does have a lot of maturity, right. And now perfect. She wasn'tavailable. Everyone counted her out. The other story they had was a gentlemannamed Bruce. He's 64 years old. He's been retired for a year and he's one ofthe guys it's like, you know what, I realize how much I miss working. Right?And maybe that wouldn't be enough to get him back into the labor force. Butwith costs and his retirement plan, you know, you'd think about I need thismany years at this much money. That's all gone out the window. He said in thein the interview, he's like, you know, I factored in, like one to 2% inflationinto the calculation, but not like seven to 12%. Right, so and so what was washis industry. So


Kyle Mountsier 13:29

clientsand information management, you mean, there's some legislation? gramm leachBliley act comes back into play and increased compliance measures are necessaryat the dealership level, you might want someone who has experience at that froma from a mature level to be able to inspect your business at an admin level.You mean there might be people out there in the world that have that expertise?


Paul Daly 13:52

Peoplenamed Bruce, like Bruce, who are 64 years see what you did there? Pause, seewhat I'm saying? People People named Bruce. And like, that's this again, theseare not when you look at compliance. Let's just talk about that for a second.You're not going to have a full time person on compliance. You're just


Kyle Mountsier 14:10

notinitially at least because news is news is


Paul Daly 14:13

firstdoesn't want to work full time right? Now, good news for everybody. Or maybeyou're an industry partner who leans into compliance. And again, havingsomebody on a consultative basis who wants to work who likes the team dynamicwho's get this grateful to be there. Wow. Right. There's an element of ofgratitude that the both of these people that we mentioned are going to havecoming into labor force. So I think the date again, we talked about takeaways,right? How do you leverage these, these folks coming back into the workforce ina growing amount, right? You can cater to them with your job offerings withyour placements with just being aware that it's out there and target them. Becauseif you're talking about someone who's gonna be excited to be there, who is anadult right they've they've been through the working world they understandsystems and teams and structures, they understand relying on one another likethey've actually finished the race in one sense. So you can already like kindof see how the story ended. Right? They're not just getting started. There's athere's a big opportunity.


Kyle Mountsier 15:11

Yeah. Iwould just go visit every Cracker Barrel locally and see if you can find none.That was terrible that was someone ripped that out of there somewhere. No, butseriously, go find this. It's the same I like, realistically, where are thepeople that you need to find to fill the labor shortage? It's like before itwas like, go to the local shoe shop, go to the Dick's Sporting Goods to findyour next salesperson, right? Well, maybe you need to take care of likecompliance or training and learning, which is a big piece of what we're talkingabout in the automotive industry. Well, a lot of those people are actuallybeing found in an older workforce. So where are those people hanging outspending their time maybe currently working, that you can go make inroads tofind out how to bring those people into your workforce. And so I made CrackerBarrel kind of as a as a as a backhand and, you know, joke there, but at thesame time, like, start thinking about where are those people? Where are thoseplaces where you can go and engage with with that workforce? So look, I


Paul Daly 16:18

think ifanyone walked into Cracker Barrel and looked around, they'd be like, oh, yeah,I get it,


Kyle Mountsier 16:22

I getit. But


Paul Daly 16:23

thetruth is right now, like, think of the educators like let's think education,think of the educators, the teachers that you've sold cars to that you dobusiness with, that you give money to the local schools, so they can dowhatever, right? It's not a bad idea to reach out to them and say, Hey, like,I've heard that, you know, some people are coming out of retirement. If anyoneever is ever looking, you know, we're looking to expand education, not on afull time basis, and it might be a really good fit, right? That's where itstarts. So hopefully, this spurs a little thought that person comes to mind andmaybe you'll ask, find finally, something that we included in the show today,because it's really near and dear to our hearts. Is that Facebook? Not meta,right? That is the parent company. Facebook is the social media platform.Facebook is rolling up its podcast platform, after just one year to which yousaid I didn't know Facebook had a podcast platform. To which we say that's whythat's why bingo Yeah,


Kyle Mountsier 17:13

weactually had our our podcast connected via Facebook. Yeah, and I don't think itever got a single listen, because that's not where people to go to go to findthat stuff. And, you know, to like layer in that as an intentional andintentional, like place to go to find podcasts is such like, I just never sawthat absolutely succeeding you they would have their like build out a wholenother platform. I think instead of embedding it in because there's already Imean, already people go into Facebook. And it's like 18,000 notifications,there's no way you can keep track of


Paul Daly 17:46

peopledon't go there to listen to podcast, right, which is a big deal. When you thinkabout social media. In general, people have a different mindset when they gointo different platforms, right? When you go into Pinterest, guess what? You'relooking to buy something, right? You're looking to buy something, you need itso you can go buy something. When you drop into Facebook, you're not looking tobuy something unless you're marketplace. You're not looking to listen topodcasts. But if you're in clubhouse if you're on Spotify, right even nowTwitter even more like they had a quicker tie to fast conversations that arerelevant to really modern topics, right? Because Twitter moves at that speedpeople are in that mindset. I love this quote from a Facebook spokesperson,Facebook spokes person. I'm gonna mess this up. Adelaide Coronado. That's agreat name Adelaide. tornato. Very good. It took me a second says we'reconstantly evaluating the features we offer so we can focus on the mostmeaningful experiences. So our takeaway said, takeaway for auto dealers bewilling to fail, be fast to fail, fail forward, right? Even if the largest mostwell resourced company in the world says, You know what, we tried it, we put alot of resources behind it, it didn't work. Why? Because people weren't lookingfor that experience. You can do it too.


Kyle Mountsier 18:55

So whatyou're trying to say is get really good at the best thing so that you canprovide the best experience on those and not spread yourself so thin thatyou're doing so many things that you don't even know how to take care of


Paul Daly 19:06

that.Yeah, that could be like, that's like a spoken word poem. Could be a wholething that you can repeat that again. No, no,


Kyle Mountsier 19:13

I couldn't.But at least it's recorded. Ladies and gentlemen. At least


Paul Daly 19:17

thatmatters. So we're gonna leave you with that today. Right? Focus on the thingsthat you're great at. You find what you're great at what your customers reallywant, what the experience they want. Put those two together and you haveyourself one really amazing Tuesday.