Oil Bouncing Like An EQ, VW Moving Manufacturing, Musk Challenges Putin to a Fight

March 15, 2022
In our first studio podcast in a week, the reunion is real as we try (and fail) to cover everything there is to cover. We give it a solid swing as we talk through everything from oil prices to manufacturing, to Apple and the NFL. We also recount some underreported NADA stories and check in on Kyle’s new baby girl.
Listen On

Oil drops below $100 a barrel


ADA Names Carmen Hinton of Carter Myers Automotive’s Valley Subaru as Winner of 5th Annual Women Driving Auto Retail Video Contest

  1. $1000 plus registration to the 2023 NADA Show

Apple signs deal with MLB and is positioning for potential NFL deal, competing w Amazon

  1. Has 200B on hand
  2. Will buy 49% stake in NFL Media and NFL Sunday ticket rights

Volkswagen shifts more manufacturing to US and China amidst European conflict

  1. Predicts a drag in commodities through 2026
  2. Wiring harnesses are a key contributor to current issues
  3.  CEO Herbert Diess says he does not believe China will invade Taiwan

Inside talk from make meetings: Inventory will still be dragging through 2024

Musk challenges Putin to ‘single combat’

SPEAKERS

Kyle Mountsier,Paul Daly, YouTube Video

 

Paul Daly 00:22

It isMonday, Monday, Monday, Monday, March 15. There we go there we're back on thisthe first day back in the studio cow and I just spoke for the first time in aweek moments, and we are ready oh, man, it's no joke we just said like, a fewmoments ago, we jumped into the stream, I was like, we haven't spoken. You can,

 

Kyle Mountsier 00:50

weshould probably get some like some, some feeling some emotions out of ourselvesbefore we actually get on and talk to however many people are gonna listen tothis today. But here we are. We're here for you. We're here for you.

 

Paul Daly 01:01

We arehere to give a shout out to Isaac, who is now producing the live stream, hethrew his we put him into like a hot LZ.

 

Kyle Mountsier 01:10

Full,like he was doing hot yoga with two arms out behind his back running livestreams and how to get started.

 

Paul Daly 01:19

Yeah, soIsaac will bring him into the show. At some point. He comes from a new stationbackground. He's got a great YouTube show of his own. And now he's on Teamasoto. And he got to see firsthand what it is to run with the crew. So it'sgreat to have him running the show. Danielle is now relaxing at the desk nextto me, just making sure that we don't get in too much trouble. Man, we have somuch to talk to I don't even know what to talk about first. Actually, let's,let's let's start with some fan art before we put it up, Isaac. So, um, one ofthe fun things you know, over the weekend, we made the announcement that weraised the seed round and all the all the investors are dealers. And so todayin the email, so if you get the email, you can just hit reply, and we will seeit and we will get it. And so we have some fan art Isaac, why don't you throwit up in Kyle You can explain what

 

Kyle Mountsier 02:08

it saysOh, my goodness. So this is actually the second fan art that we've receivedfrom this gentleman, Robert Angus. And we just want to first of all, justappreciate you because it just gives us all the laughs But yeah, so he justsuperimposed a couple of photos of looks like and I don't even know where thisphoto is from. But basically and superimposed with so you can't see it. We'll sharethis out somewhere but all of our investors and Paul and myself on. 60s 60sit's it's kind of the golden era era like gangs and yeah, your

 

Paul Daly 02:53

handcuffshanging from our belts and Kyle You look like you're like got an Australian

 

Kyle Mountsier 02:59

Australianwith the hat.

 

Paul Daly 03:01

Lookslike you could just kick butt in Australia. I just noticed it's thistroublemaker on the door. Did you notice that?

 

Kyle Mountsier 03:09

Rightthere in the middle? Yeah. On the door. The car keeps

 

Paul Daly 03:12

gettingbetter. So you see Scott Simon's and Brian benstock and Kyle and Damon andDavid. Brian Kramer myself lies I think lies is holding the tommy gun.

 

Kyle Mountsier 03:21

I thinkshe is I love that Liza I feel like in this photo lies is like the one and sheprobably will be this for all of us. And and is this industry right is like,she's just gonna keep us in check. Like at some point, she's gonna pull all ofour years over to one side and be like, Watch it. Watch it, you know.

 

Paul Daly 03:40

So it'sfun to share that picture. We'll post it up if you if you haven't seen it. AndI'm sure it'll get circulated. We have one more investor that we're going toannounce. We're just not announcing it yet. For reasons we'll tell you allabout that. But there's one more and he's missing that I texted him I was like,You got to make sure we can announce this because you're missing out on all thefan art. Like, oh, Kyle, baby girl, she's beautiful. Man our camera a few minutesago. How's mom and how's everybody? Oh, mom is

 

Kyle Mountsier 04:09

doinggreat and we ever want to come home really quickly and baby's doing great,super healthy, you know doing doing all the things that babies do which isreally only three things which is eat sleep cry and you know Yeah, so she'sshe's doing great and we're happy. You know I've got two older kids they'rejust eating her up and already helping out and you know getting the clothesready getting the diaper ready. You know holding her when we need when we needthem to so it's been a blessing already a little bit of a shock you know it'sbeen six years since we have had a baby like I remember these things right? Soyeah, this is a whole new world but but we're having a lot of fun and of courseyou can see I'm not in the studio if you're watching at the house and get a beback and forth. Between stuff today, so but it's really, really good. It'sreally good.

 

Paul Daly 05:03

Okay, sowe got a little congrats coming in on Slack channels. Alright, we have somefunny stuff to talk about today, we have some serious stuff to talk abouttoday. So we're gonna have to mix these things. But probably one of the firstthings that needs to be talked about is Elon Musk challenging your Putin tosingly combat. I don't fully know what that means. But I have an idea. I thinklike gladiator mode, right? Like everybody's

 

Kyle Mountsier 05:27

in a bigcircle. Elon comes out rips his shirt off. DadBod everywhere.

 

Paul Daly 05:35

Like, Imean, maybe he meant to maybe he meant to type Mortal Kombat like the videogame. Because I don't know if you realize flat reboot was former KGB. Right?Right. Like dude knows how to take somebody out. Right? But you got to thinkmaybe Elon Musk has some Tony Stark up his sleeve shirt. But whatever. I mean,what a strange What a strange world we live in. Just there is a there's acountry invading another country. And you have a US tech auto mogul challenginghim to a fight to determine the fate of the country being invaded. And it'ssomehow like not bizarre in culture.

 

Kyle Mountsier 06:16

And notjust that, but it it starts this massive conversation on Twitter nonetheless.Right, right. I mean, people back and forth laughing talking about, you know,what's good, what's bad, what could happen? And and this is what this is whatstrikes me. Like, Elon Musk didn't go on NBC News, right? And tell all thecameras to point his way and throw down a gauntlet, right? He went whereeverybody already was, which was Twitter, and just in 240 characters or less,

 

Paul Daly 06:46

he'sprobably the bathroom. That's right.

 

Kyle Mountsier 06:50

He'slike, Ah, I guess I'll just tweet a little bit. Right. It's such an it's so somuch an interesting world. I think there's man I, I'm thinking about all thelessons that we can learn as business people, as you know, communicators outout of that one tweet. Right. And not just that, but I mean, all of the thingsthat that Elon does, and he's much more avant garde than I think many peopleneed to be you have to have a certain personality to do that. Right. And sure,some of the things that he says to the President and all that is, is not That'snot typical of business, but I do think what can be typical of business iscommunicating where people are, and, and being relevant. And, you know, wetalked about it last week, or a couple weeks ago, it's like when, when peopleare thinking and communicating about X, then you should be to write on it. Ifthe Superbowl is in town, talk about the Super Bowl, if you know, the dog showsin town, be a part of the dog show. If the Ukraine war is going on? Like youhaven't, you have an option to say something or nothing. But either way, you'resaying something, right. And so whatever that stance is, like, the internet, thethe social media, presence of a business or a person is is a reality, it's apart of your brand, whether you're a part of it or not. Right, you know,

 

Paul Daly 08:07

wetalked about this, you know, when we do some marketing, consulting and branddevelopment things is that the internet is like a rushing river. And when youtry to like shout your message at people in the river, it's like dropping aboulder in the middle and all the water has to hit against it and move around.But modern communication that you're talking about, it's like, make your brandnew, you're marketing a boat, put it on top of the river and go in thedirection the rivers going. It's definitely an awkward start, like Iconflicted, conflicted feelings over because Elon, it's it's funny, right? It'slike a little shocking, a little funny, you start to be like, oh, you know, cuzElon obviously has been a huge supporter of the Ukrainian people through thewhole thing, sending, you know, tons of Starlink dishes over there and warningpeople in Russia, like, hey, Starlink is the only place you can actually getunfiltered internet. And you just said on a warning the other day, he's like,Hey, like, you're likely going to be targeted, if you know, they figure out andthey probably can track signals or whatever, and figure out that you're usingit. But it is interesting, because there's so much I mean, like the worst ofthe worst things are happening right now. And then like he tweets, somethinglike that, that that kind of instigates like a funny conversation, right? Andit's this world we live in, right? It's all the motions at once. It's all thethings that's so true. It's like making making making sense of intentions andoutcomes. It's just an interesting place. And it's one of the reasons we talkedabout right. Because we're communicators, we communicate in a different style.And yeah, so that's, that's that and I don't know why. So we have to like dosome funny ones. And some serious ones. Like that was like a little bit ofeach. Let's talk about a little auto news. So let me let me talk about a littlebit like of what I heard from some make meetings, right? There's this isn'treported anywhere. There's not a press release anywhere. But some people comingout of the Honda meetings, super meetings, Volkswagen meetings. Theoverwhelming I think it was the Honda one. I can't I can't say that for sure.But they were like, hey, they were just like really transparent and honest. Andthey were like, don't expect inventory to get better through 2024 Wow. AndThat's the end, you know, like that you're not hearing that anywhere else. Butto make meetings, they're like, we're not expecting to have anywhere nearnormal for another two years. Right. So dig in, get used to it. And so Ithought that was some real talk that I heard on the floor. That it you know,

 

Kyle Mountsier 10:18

when yousay when you say two years, or you know, let's just say 2025? Because probably,even in a mate meeting, when they're super transparent, they're probably stillgiving a little bit of a lead right now. Oh, yeah. But let's say it's 20242025. And the crossover to Eevee is in that same timeline, right. Yeah. So nowyou talk about Eevee is already a type of vehicle that they're talking abouthaving less inventory on ground and more order inventory. Right. So now you'recrossing over the lack of inventory already and a new model at that same time.Actually, Aaron Horwitz, CEO of auto lead star wrote a whole article aboutthis. And he and he related it to just this, this massive app mathematician,basically talked about a there's the Noah, Noah concept and the Joseph concept,both from biblical era, but it has mathematical impact as well, that they'vestudied over the years that it's always happened, and that these times of greatharvest, essentially, are, are then struck by times of great disruption. Andthat they that they tend to fall in seven year patterns, no figure, right, youand I both know,

 

Paul Daly 11:39

we gottafind that article. We got a feature. Yeah, amazing.

 

Kyle Mountsier 11:41

It'sabsolutely it's actually incredible. I'll share it with you and we can maybelink it out somewhere. But but the but the reality is, is that is that the thedisruption of the pandemic, is, is what mathematicians may may say, is like aseven, seven year timeline, in in harvest, that it's not gonna just wane in2022 or 2023. But they'll be in there will most likely be another disruptionaround a seven year timeline that will shift that into something different,whatever that different looks like. Right. And so if you think about thetimeline of that of 2020 2026 2027, right, whoo, man get a little he's he wasout of your preaching on No

 

Paul Daly 12:24

nokidding. Hey, like history's great teacher. Yep. You know, innovators,innovators under the best innovators understand history. Yeah, right. Andthey're not they understand they're just, they're just about to become a partof it. Volkswagen is saying it is shifting us an automotive news article fromthis morning love our friends at Automotive News. They're shifting moremanufacturing to US and China amidst European conflict. And they're predicting,you know, a drag overall. Here's another thing, a drag in commodities, through2026 or so they go with your, you know what I mean, little little Volkswagenspredicting it as well, right? wiring harnesses are a big part of Volkswagensdisruption, if you didn't know a lot of their wiring harnesses are made inEurope and Ukraine. CEO, Herbert D, says he does not believe China will invadeTaiwan. So like somebody asked him in the article, well, if you shift yourmanufacturing to the US and China, to avoid this, like, what are you going todo? If China invades Taiwan? Obviously, you're looking we're seeing, like someinklings of military movement. You know, everyone's saying that, you know,Russia's move would embolden China to do the same thing to Taiwan that Russiadid to Ukraine, very similar situations. And, and he says, No, he's like, theirinterests are too tied with the West Sea of Russia, not even close to theintegrated, you know, the integrated so he seems pretty optimistic. I don'tknow how anybody can be like, optimistic that to ever again, be like, No,there's no way that could happen. Yeah, no, there's no way they could shutbusinesses down because of a pandemic. That can't happen. Can't happen. Yeah,I've just read an article about Ukraine, like people saying, like, it's reallyweird, like people, like that'll never happen. Like, he's he's negotiating,right? He's bluffing. He's doing all this. And here we have that. So Volkswagenis shifting, right. They're pivoting, and they're moving a lot of theirmanufacturing to make room for this other stuff.

 

Kyle Mountsier 14:09

Yeah.Look, here's the thing. I think that, look, you have to be ready to pivot. Ifyou're a business, I don't care how big your businesses and you have to beready to pivot often and quickly. And, you know, Volkswagen is just saying,Yep, we're doing that right now. And we're gonna keep our head up. I mean, ifif, if I know anything, a man that's willing to do an Ask Me Anything onReddit, probably has his head up enough to know, to know what's up next. Right.And we reported on that a few weeks ago. So I think that Volkswagen probably isvery, very aware of what the capacity is, and what the next steps may may ormay not need to be.

 

Paul Daly 14:47

Withouta doubt, without a doubt. Um, here's a little culture news. And something thatI personally got really excited about is apple. They signed a deal with MLB tostream a number of games and I thought like that was the lead story, until Ikept reading And I realized that Apple is actually positioning against Amazonto own NFL Sunday Ticket and there's zero absolutely zero DirecTV people likepeople rooting for DirecTV to get like No Not gonna happen again. We werecounting down literally the years until the the extortion that was the directTV deal with the NFL. Our could go away and now Apple say no no we want it theyput forth an offer to actually buy 49% stake in NFL media. Like what 49% stakeof NFL media. They have $200 million sitting in the bank right now, Kyle?

 

Kyle Mountsier 15:38

Oh,yeah, no, they've been they've been cashed. They've been like fully cash.Everything for years. I think somebody like Scrooge McDuck. It's unbelievablehow much cash they just have sitting around wondering what to do with rightnow.

 

Paul Daly 15:52

So theirmarket cap is 2.7 trillion, they have 200 billion in cash ready to deploy. Sothis they're looking at 49% stake in NFL media and NFL Sunday Ticket rights. Ifthere was a reason that I would buy a subscription to Apple TV. That's thereason I mean Ted lassos great and all but like what else you're gonna

 

Kyle Mountsier 16:10

ya know,it's it's a struggle bus right now. And they know that and they're trying tofix that. Which would

 

Paul Daly 16:15

be wouldbe the change the game? Yeah, please, please, please, please, please, pleaseget? Yes, your ticket.

 

Kyle Mountsier 16:21

Ifanyone's listening. We are asking.

 

Paul Daly 16:25

Youguys. Exactly. cash rich and hungry for NFL content. You're looking guys,here's, uh, let's see. I know we're going a little long.

 

Kyle Mountsier 16:36

This oneone more. Paul. We got to show the video we got to do Oh, we

 

Paul Daly 16:40

do. Andthen we have to give a shout out to Carmen hidden but yeah, I forgot the video.How did I forget this? Go ahead. You introduce this? Well,

 

Kyle Mountsier 16:46

so we'retalking this morning, and oil has dropped below $100 a barrel, which is a goodthing, right? All around? You know?

 

Paul Daly 16:55

My car's$110.

 

Kyle Mountsier 16:58

Right.But we all know that. And we've talked about oil prices. Everybody's talkingabout oil prices. And in our group chat this morning, Danielle, who if youdon't know her, Danielle is our I look, whatever title we give her is probablynot enough. She just does so much for us. But she shared this video that wejust want to give you a brief taste of this morning to lighten the mood. Andfor those that can't see it. You will absolutely understanding Yeah, it works

 

Paul Daly 17:26

audio orvideo and this is our buddy John B Crist comedian, and here you go.

 

YouTube Video 17:35

Gasprices are going up again. And you know what that means hastily made storyabout it on your local five o'clock news, we'll start with a still shot of thegas station sign obviously, then someone opened up the gas tank and put thething in next we're gonna do a shot of the price sticker as they fill up withgas. After that, we'll probably just interview someone at the gas station andask them very leading questions to get them to make the situation sound waymore extreme than it actually is like this. I can't afford to go to the grocerystore anymore. I can't afford food anymore. Usually after work on a Friday godown to Chili's and get a cold beer, maybe a two for 20. But now with gasprices being the way they are. I can't even afford that. After that. We'll showsome more shots of the person we just interviewed getting gas and maybe showingthem looking frustrated like this. Or maybe like this not yet convinced thatthe world is ending tomorrow. How about another doomsday soundbite I mean, atthis point, I'm honestly thinking about maybe you know, taking out a secondmortgage on my house or selling one of my kidneys or something. But that willconclude by telling you to tune back in at 10pm to literally watch the exactsame story again.

 

Paul Daly 18:36

It'sjust unbelievable. We couldn't stop laughing at that this morning as people whoproduce content and watch local news. Isaac came from local news. So he's like,I think I produced that exact three times last week. It was a way to just bringa little light to all the things going on one last thing we want to give agreat congratulations and shout out to Carmen Hinton, Service Manager CarterMeyers automotive, cool Valley Subaru so you know Liza, Portus and asotoinvestor. This is her Subaru store and her service writer one the fifth annualwomen driving service

 

Kyle Mountsier 19:10

orservice manager who started as a receptionist sounds absolutely incredible.

 

Paul Daly 19:15

I didn'tknow that part of the story will link up the video will link up the video inthe show notes. So if you haven't seen it or you want to see it, you can checkit out there. We're gonna get to meet Carmen next year now because if you don'tmeet her before, because as part of the price she gets $1,000 and complimentaryregistration to the 2023 Nada show which is going to be in Dallas, Texas. Ican't wait. coming to get you Michael Cirillo in Dallas, Texas. All right, thatdoes it for today. Thanks for being with us on our first day back in thestudio. We're just getting warmed up, got a ton of content coming out, go to asoda, calm sign up for the email list. Much more, much more much more to come.We will see you tomorrow.