Substantial Strike Movement, EV’s Election Pitch, Bullet-Ridden Tesla

October 23, 2023
It’s a great week to be in the car biz as we discuss the latest movement in the UAW negotiations. We also take a look at the rising political rhetoric around EV’s, before we weigh in on whether or not the Cybertruck is actually ‘bulletproof’.
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Show Notes with links:

  • In their seventh offer since the beginning of the month, GM is claiming 'substantial movement' in its latest offer to UAW members, joining Stellantis in proposing a 23% wage hike. As the strike enters its sixth week, both automakers aim for over $40 per hour wages by 2027, reflecting industry shifts and pressures amid ongoing negotiations. This amount matches what Ford has already proposed earlier last week.
  • UAW President Shawn Fain seemed to agree, saying the offer was “serious movement” as he reminded everyone that he could expand the strike at any moment. 
  • ”The bottom line is we’ve got cards left to play, and they’ve got money left to spend,” and continued that the UAW is after “not just a good contract, not just a record contract, but a contract that turns the tide.”
  • Stating that this is the most significant offer ever proposed by GM to the UAW, the company emphasized their recognition of team members' dedication and contributions. "It's time to conclude negotiations, bring our team back, and focus on ensuring GM's success, securing quality U.S. jobs for many future decades.”
  • Fain also took the opportunity to respond to Bill Ford’s comments last week regarding Ford and the UAW banding together to beat ‘non-union’ automakers by saying, “"The days of the UAW and Ford being a team to fight other companies are over.”

  • The retail auto industry has found itself in the center of culture once again as EV adoption and government incentives have become a political campaigning point. Amid rising EV prices and labor strikes, President Biden's pro-EV stance faces challenges from Republican contenders, further polarizing the electric vehicle debate.
  • In the U.S., for every five Democrats owning an EV, there are two Republicans, highlighting a political and ideological divide in electric vehicle adoption.
  • The demographics of EV ownership also reveal an economic disparity: 
  • the median household income of EV buyers is $186,000, up from the typical new car buyers, $122k
  • That number is up recently from the $90k mark it had been for decades
  • From the WSJ Article
  • “I don’t get why Ford and GM, why these carmakers, aren’t fighting…to make cars that are going to sell, to make cars that are going to be able to go on long distances,” Trump said at a rally during which he predicted the EV policies would lead to “hundreds of thousands of American jobs” being lost. 
  • Biden visited the UAW picket line, one of several trips he has taken to the region, including to last year’s Detroit auto show, where he touted his work to help EVs. 
  • “The real question is whether we’ll lead or we’ll fall behind in the race to the future; or whether we’ll build these vehicles and the batteries that go in them here in the United States or rely on other countries,” Biden said while visiting a Ford factory early in his administration.

  • Late last week, a post on the popular "Tesla owners silicon valley" account showcased Tesla's test-turned-publicity-stunt on the Cybertruck's bulletproof claims. 
  • Tesla CEO Elon Musk confirmed the Al Capone-style barrage. Impressively, the vehicle's exterior resisted penetration, with his comment on the post “We emptied the entire drum magazine of a Tommy gun into the driver door Al Capone style. No bullets penetrated into the passenger compartment.”

The appearance follows Tesla’s disappointing earnings call last week

Paul Daly: 0:25Morning we're into another week already. It's October 23. We're talking about some substantial strike movement, EVs, election pitch, and a bullet ridden Tesla. I go to people to talk about bullets, bullet bullet bullet.

Kyle Mountsier: 0:46

Bullets this week, like I am so geared up for this week. I don't like I think it is, we came, you know, and we talked about this on the pod last week. But we we met with our like director team last week for so to just to plan out the next nine to 12 months of what asoto might look like. Because you know, we're always like throwing little wrenches, we're going to try and not throw wrenches so that you can a plan around it, as well as our team. But also, I think, like coming off that than we have our Friday meeting with our team, and just call it into this week, like everyone knows what we're after, and building this community showing what it's more about. And then listen. So you may have seen, I did a little interview with, with the team at JD Power a couple months ago. And Stuart stroupe emails me this weekend. He's like, I watched episode two of more than cars. And it was unbelievable. I haven't seen anything like it in the industry. He's been around the industry for a long time. And then that's Saturday morning. And then I show up to church on Sunday. And three people are like, I watched episode two, hey, and I think I really like automotive, you know, like, I'm like, too good.

Paul Daly: 2:06

And then JD Power called back and was like, hey, we want to help sponsor and fund the rest of the season. You believe in it. So Christine,

Kyle Mountsier: 2:12

if you're if you're listening, you can still call back and say that we will

Paul Daly: 2:15

Yes, yes, we will we will we absolutely. Well, I look, I don't know if there's any reason to be tied. If you really say you care about the industry, to anything else. Other than that, if you're not tied to it, like if you say it, and preach it, because you know, we've heard it a lot where people are like this needs to happen, this must happen. This has to happen. But like we know, just like everything in life, like there are a lot of words, but people look about like what you do. And in business, where your dollars go reflect the values and beliefs that you have. Just putting that see putting that out there. We're so thankful for so many partners that we have in the US so diverse, who do believe that and the bottom line is that like we know that when we connect and when we do meaningful things and when you're fired up about what you do. The funny thing is that you make more money because your business is more operationally sound, your technology is better. Your hiring retention is better. Like it's all better. All that all better. All better. Oh man, we got going right away.

Unknown: 3:11

Speaking of getting better, whoa, segue I don't even know where you're going with this. Hey, this

Kyle Mountsier: 3:17

Wednesday at two o'clock we're talking about getting better with four eyes and Jeff Ramsey of oarsmen automotive, we're going to be talking about the struggle being real, how data may be destroying the customer experience. So little bit of interesting title. But I'm excited about how we're actually going to engage with data and how we transfer that into how we engage the consumer in their experience. So thanks for for eyes for partnering with us to put on that associate edge webinar.

Paul Daly: 3:46

Super cool. These webinars have been great quick format, new webinar format, no more sitting on a call for an hour, pretending you're paying attention. Just 20 to 30 minutes quick shot. So you actually get what you need. And then you get on with your day. We hope you join us that here's another thing wanted to talk about. I don't know what it is. We're not going to announce the date yet.

Unknown: 4:06

But we have decided to we say it right now. And everybody on our team would kill us.

Paul Daly: 4:13

Okay, we're not we're not going to say the date. Let's just say, all right. Pay attention, because tomorrow we're going to talk a little bit about when the next asoto con is going to be in that might be a little surprising for you. But we want to make sure you are there so many people couldn't be there. Because they said we didn't announce early enough. So we're announcing super early this year. So we'll talk about that. Then. Okay. We should probably get into some let's get into the Oh, but you mentioned more than cars. If you don't know what we're talking about. Or you haven't seen yet more than cars is a docu Docu series that we're making about the inspiring things that happen inside retail auto dealers every single day. Kyle and I traveled around the country telling some insane stories coming out of these dealerships. You know, lives changed families changed amazing environments. And Kyle and I have a lot of competitions to which I won't spoil everyone, but I have a hard time winning. So you can go to more than and see both episodes one and episode two now. For free. All right, speaking of things that aren't free segue. Okay. So when there's a seventh offer, that's Lucky number seven since the beginning of the month, GM is claiming, quote, substantial movement and its latest offer to UAW members joining the Lantis. Together, they offered a 23% wage hike as the strike enters its sixth week, both automakers are aiming for over $40 an hour for by 2027. So it's like a weird increase reflecting industry shifts and pressures, the amount matches what Ford had already proposed earlier last week. So here's a little bit of the back and forth UAW Sean president or president Sean fain seem to agree that it was like good movement, saying there was serious movement Great. We'll take that little bit of a take it all right, reminded everyone. Betty reminded everyone we could expand the strike at any moment.

Kyle Mountsier: 6:06

He was like he was like see this see this? See this infinity stone gloves see this thing? He's like

Paul Daly: 6:16

Oh, man, so basically, he says in quote, I quote, The bottom line is we've got cards left to play and they've got money left to spend. You know, he also continued that the UAW is looking for not just a good contract, not a record contract, but a contract that turns the tide. You know, that's going that's, you know, GM had a some some quotes, had some things to say it said it's time to conclude negotiations, bring our team back and focus on ensuring GM success securing quality US jobs for many future decades. And here's the last little

Kyle Mountsier: 6:53

here's the one. Here's the little one that we're going to comment on. Okay, so we got GM and

Paul Daly: 6:57

slant is making offers Shawn fain saying, Okay, we're making progress. He's like, Oh, and by the way, he took the opportunity to respond to build Bill Ford's comments last week. Regarding Ford, the UAW banding together to beat non union automakers and he said, quote, the days of the UAW and Ford being a team to fight other companies are

Unknown: 7:19

over. Wow. This is

Kyle Mountsier: 7:22

this is clearly not a man after our own hearts here looking out for number one right there, he shipped him a collaboration is critical shirt. Is that possible? When we get that in his mailbox? Anyone?

Paul Daly: 7:34

Could Hey, maybe if we do he burned it on TV,

Kyle Mountsier: 7:37

that would be crazy. We because, hey, is that like the all publicity thing? But

Paul Daly: 7:42

I guess, hey, if he wants to come on the show, we would love to have

Kyle Mountsier: 7:45

we come on on the show. We'll have some fun. We want to this this is that is a scary statement for me. Because, like, I'm just looking across the way and I think that Bill Ford's comments were absolutely accurate. And when you look at the like the landscape of what's happening with new automakers, specifically, new Evie automakers making their way into this, this OEM landscape, like there has to be collaboration in order for survival of legacy over OEMs to work. And that being the potential heart of the UAW, I don't know if that's everyone, but the fifth the like the verbal and out their heart of it. Scary.

Paul Daly: 8:31

It is, I mean, maybe maybe they're positioning to, you know, just the bigger the bigger win for them is getting more non traditional automakers unionized. And so he's using that to rally the other ones to say no, no, no, no or it's not us against them. But you know, like traditional against newcomer

Unknown: 8:50

I don't know, I don't know it just just didn't I don't do good with conflict.

Kyle Mountsier: 8:58

Speaking to newcomers in the Evie market

Paul Daly: 9:03

want to say so many things, but the retail auto industry is founded. More from conflict the conflict rate to auto industry has found itself in the center of culture once again as Evie adoption and government and senators have now become a political campaigning point. Amidst rising Evie prices and labor strikes. President Biden's pro Evie stance faces a lot of new challenges from Republican contenders for further polarizing the electric vehicle debate just what we needed. In the US for every five Democrats owning an Eevee there are only two Republicans highlighting a political and ideological divide and adoption. And here's another thing the demographics of Edie Evie ownerships also reveal an economic disparity. The median household of an Eevee buyer is$186,000 a year up from the typical general new car buyers household income of $122,000 a year and even that number is way higher than it's been for decades where it was kind of stuck at 90, the $90,000 mark for a long time. So basically, we have like two sides of this fight, obviously, from the Wall Street Journal article that has this it says, here's a quote, I don't get why Ford GM and why these car makers aren't fighting to make cars that are going to sell to make cars that are going to be able to go on long distances, said, you know, um, Donald Trump at a rally during which he predicted Evie policies would lead to a hundreds of 1000s of American jobs being lost. The flip side, right, the flip side of you know, Biden visited UAW picket line a little earlier this month. And Biden's quote, the real question is whether will lead or fall behind in the race to the future, or whether we'll build these vehicles and the batteries that go in them here in the US, or rely on other countries, Biden said while visiting a Ford factory, so there really is one side, other side, we're just trying to figure out how to move some EVs or how to stop making so many EVs,

Kyle Mountsier: 10:59

the sides, you know, like I hesitate to get in the political thing. The shocking point here is that the median household income of EB buyers, right now is $186,000 a year. Like, that's top 1%.

Paul Daly: 11:17

of all because usually, it's like a third car, right? Exam. No. And so that I mean, it'd be interesting to see what the data has done. Like, how old is that like, as of the end of 2022? Because I have a feeling 2023 shifted that a decent amount, because of incentives, and it's going to shift a lot more. But I mean, the real political debate is, is government money going into influence commerce, right. And for a product that it's obvious that consumers aren't really ready for yet, maybe they will be

Kyle Mountsier: 11:49

or can afford. And I don't think that leads us now to income is just the affordability of the actual VO, it's the affordability of charging or having a home where a charger can exist, right? Like it's multiple factors that lead to needing the high household income. And until you get that high household income closer to at least where new car buyers, which is already ramping up because because of the change in affordability with pricing and interest rates. I mean, I talked to so many people that are sidelined right now. It like literally sidelined in vehicle purchasing because of interest rates. Because they literally can't afford it. I even seeing you know, there was a thread on a car dealership guy LinkedIn post, where finance managers in general and GSM. Were just saying we're seeing an absorbent amount exorbitant amount of cash buyers, but some of those cash buyers are actually credit union buyers, because credit unions are three still three to 4% less than regular banks. And so as long if you don't qualify for credit union financing or don't have a credit union, you're even more sidelined by that. So I think, you know, like tracking that all the way back to EVs, the EVS sidelining people that may or may not may want to buy an Eevee, but can't afford it don't have the resources don't have the garage to put the charger. That's the bigger issue at this point. And I don't care what amount of government incentives, you may or may not have that still the bridge across,

Paul Daly: 13:21

you know, it's like, I think we're gonna historically we're gonna look back on this time and say, like, is it possible for a government or governments globally, even to force a technology and then just make it force feed, it's so hard that eventually it becomes the normal, because the flip side is like, say, you know, you have China and foreign automakers doing that to an extent. And there is a risk of not being in the mix, right? And a lot of that to shorts, it's it's not a, again, just like everything that tries to break down to be red and blue. It's like, no, there's valid points for each approach. And the more measured, we can be in it, and the more practical we can be in solving our problems. I think, you know, I believe in the industry, we'll figure it out. But you know, well, stop speaking because I want to say other things but other things other things. Speaking of other things,

Kyle Mountsier: 14:14

other things just definitely another thing. Last week at Twitter post a little bit broke the broke the old x will call it a Twitter post but an ex post was popular on a an account called Tesla's owner, Tesla owners Silicon Valley account. It showed a test turn publicity stunt on the cyber trucks new bulletproof claims. Basically what it is, is it's a photo if you're watching, you can see it. But so, but a user found this truck driving on on the streets and it is a cyber truck with what looks like bullet shot at it all up and down the body side panels. There was nothing headed toward the glass but they got all The doors and the little bit of the two quarter panels on that thing after the post went live, the CCO Elon Musk confirm the Al Capone style barrage. And his comment on the post was we entered the entire drum. we empty the entire drum magazine of a tommy gun into the driver door Al Capone style. No bullets penetrated into the passenger compartment. This was a little bit after Tesla Tesla's disappointing earnings call last week. What a mess. Oh,

Paul Daly: 15:32

hey, like if what do they say? When in doubt entertain. When in doubt, entertain and that's you

Kyle Mountsier: 15:40

know, I will say if you read a little bit more in the article, a bunch of people are like nah, if it's a tommy gun that's like, like that's a soft blunt bullet head and it's not you know, it's not like a high capacity round or anything like that. And you know, a 22 would easily penetrate that, but hey, look

Paul Daly: 15:57

22 I don't care so it's a 45 caliber or 45 That's right. No, it is the tommy gun is a 45 is a little more blunt. I actually somebody in the thread I have is like obviously really interested as they started. Somebody actually tested different rounds on the same eighth inch hardened stained like the exact spec to stainless steel. And it did stop everything. It stopped nine millimeters it stopped a bunch of stuff, but you know, obviously like an AK 47 Or

Kyle Mountsier: 16:21

like, you know, an AR three?

Paul Daly: 16:22

Yeah, but that's but hey, if I'm driving in that in a shady situation, I feel really good veteran right? And people ask the question, right? Why did you truck need to be bulletproof? To which I respond? Why not? Doesn't Elon Musk he's like well, I can well should not ever was was former Marine Special Forces and never forget, he got all excited because there's this like set of consumer level. Well, like prosumer level night vision goggles that were like a pretty decent military spec for like 500 bucks and he brought him he showed his vice like, Hey, look at me. She goes like she goes, Why do you need him? He goes, because that's why that's why that's exactly why so Hey, y'all, that wasn't a little up and down. Have a show. I don't know what was this? Hey, it's Monday. We got a fresh start to the week. You got a bunch of people waiting to buy cars and a bunch of people looking to you for leadership. So lead them in the right way. Sell some cars

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