Show Notes with links:
Not long after GM announced their Q3 earnings the UAW has initiated a strike at General Motors' high-profit SUV plant in Texas, impacting the production of key models and deepening the financial blow to the Detroit 3
A proposed bill in Colorado seeks to introduce a “vulnerable road user protection registration fee” for heavier vehicles, with the intent to funnel the revenue into pedestrian and bike safety projects.
A range of automakers are now offering electric vehicle leases for under $400 a month, making EVs more accessible to the average consumer and ramping up competition in the market.
Paul Daly: 0:30It's already Wednesday already. Do you believe it's the month? UAW is going crazy. Colorado has a pedestrian dilemma. And there are a bunch of EVs that you can now lease under $400 that people really want. That's good news. Especially when yesterday, we're talking about vehicles that have a 22% interest rate. I don't know when to be funny.
Kyle Mountsier: 0:55
Doesn't really counterbalance that, but
Paul Daly: 0:57
it doesn't. It doesn't. It's just a thing like getting up.
Kyle Mountsier: 1:01
It's just feeling Oh, get into.
Paul Daly: 1:04
I'll tell you what, what are we getting into today at 2pm. Today is our next DeSoto edge webinar. Kyle and I are be hanging out with our friends at four eyes 2pm Eastern Standard Time. struggle is real how data is destroying the customer experience. We're going to four eyes expert David Steinberg and Jeff Ramsey of the oarsmen group with us to talk through how they're doing and how they're deploying it little like Dare I say collaboration moment. And the coolest thing if you attend the webinar, you get to use the four eyes platform for free for 60 days.
Kyle Mountsier: 1:39
Right? Like nobody does that come on,
Paul Daly: 1:42
they do auto Minnesota wedge webinars so you have to register go to a so to.com scroll up a little bit you can click the link register right there and calm I'll see you in just a few hours from now on the 20 to 30 minute webinar again, quick format, kind of why are we wearing these scarves today
Kyle Mountsier: 1:58
because we are just overwhelmingly excited about the fact that we have already announced the save the date for a soda con 2024 It's going to be May 14 through 17. May Tuesday through 20 through a Friday it's not in September here that again it's not in September we're moving into May we got a bunch of feedback people were like put this earlier in the year we got all the dealer meetings in September we don't need it then we're going to move it to may we're going back to the same amazing venue I wish I could have like recorded everybody that came up to me and was like
Paul Daly: 2:33
we have some of it somewhere
Kyle Mountsier: 2:35
guys this food was unbelievable. Also true I didn't know we've got a ton of comments on the rooms like the actual rooms that were staying in there were like it was dialed in it felt really good felt comfortable all that so we'll have tickets all the things all the rooms ready available end of the first week in November so we're only like 10 days away from that that's it
Paul Daly: 2:56
that oh man it's gonna be so great. So if your industry partner and you want to sponsor we do have obviously a limited space, the trade show floor you know we reworking and it's a real neat thing and we got a little surprise but if you want to be part of that if you're interested email a Am J at a soda.com make sure that you are on her list so the second the prospectus is out you will be one of the first ones to get the copy you get first crack at it all right, it's it I feel like this energy this is like is this called a soccer scarf or is there another word like the pitches the field and the matches the game? Is there a soccer word for this? It's a football scarf right?
I didn't know sometimes I guess I get when the US get over it. You know, I'm over it.
Paul Daly: 3:41
I was over it before it was in the US. Speaking of not being over it, oh, aw. So not and not long after. I mean, we're talking like real soon after, GM announced their q3 earnings, the UAW initiated a strike or expanded the strike. They initiated one at the General Motors high profit SUV plant in Texas, the one that's making the money impacting the production of key models and deepening the financial blow on the Detroit big three so 5000 workers at GMs Arlington assembly in Texas were ordered on strike by UAW president Shawn fain makes vehicles you may have heard of like the Tahoe, the suburban the Yukon, the Escalade.
Kyle Mountsier: 4:28
Oh, big money, okay, I see that playing ball now. That's what this is
Paul Daly: 4:33
kind of like striking the Super Duty plant. For Ford. Now they're like, Okay, again, this is one of those things where it's like, okay, it's escalating and ramping up, they're going to run out of places to go pretty soon, UAW president Sean fayed says, and I quote, another record quarter, he's talking about the GM earnings, another record quarter, another record year, as we've said, for months record profits, equal record contracts. It's time for GM workers and the whole working class to get their fair share, like how you looped in everybody, everybody in the entire world and everybody who works, GM responded by expressing disappointment in the UAW decision highlighting that they had increased their previous proposal by 25%. Just last week. So the UAW expansion also yesterday affected the Lana's profitable Sterling Hills assembly plant in Michigan where they make Ram 1500 pickup. So it seems like the gloves are off the taking the big swings, Kyle,
Kyle Mountsier: 5:28
they are taking big swings, I'm telling you what, like, both of those things are in highly profitable, high volume lines, that the consumer public without a doubt once family vehicles, right. And this is, this is where I think we're getting into the place, right? Where, what 41 or 42 days, I think 42. Yeah. And I we're getting to that place where early on a lot of economists, a lot of people that we know in the industry, myself, we were all saying like that five to six week timeline is the tipping point of when we see that it's probably going to start impacting more deeply in the industry. And when they start pulling punches like this is going to really start to impact because also from what I've heard, is those are the model lines in those manufacturers like from dealers, what I've heard, those are the model lines that are ready had the tightest inventories, even though they have long late day supply for the actual for the manufacturers, as a whole. Those vehicle lines already had tighter inventory supply. And so I would be interested, I wonder if someone will come out with like an inventory supply matrix of those particular vehicles. Because watching what happens to that in q4 might really strike a change in affordability and availability,
Paul Daly: 6:49
availability, availability, we're back to this
Kyle Mountsier: 6:53
Paul Daly: 6:54
Gosh, it's the same time of year too. I mean, they're running out of cards to play though. So I feel like that's a good thing again like to think that they were ever going to come to a resolution without like playing the the heavy cards. I don't think that was ever gonna happen.
Kyle Mountsier: 7:08
It's like 45,000 of 150,000 workers right now are on strike.
Paul Daly: 7:14
Gotcha. And all the Evie plant workers are going out every day. And the company is like I don't know if we can make any more of these like that speaking of EVs get out. The show is called the automotive troublemaker. We should say that the beginning of every show just to set the context of a proposed villain Colorado is seeking to introduce a quote vulnerable road user protection, registration fee, spell roof, roof roof, roof roof for heavy vehicles with the intent to funnel the revenue into pedestrian and bike safety projects. This is Colorado by the way. The fee aims to generate around $20 million annually which if you know infrastructure projects isn't a ton of money. However, even a 9000 pound vehicle like a Hummer EV would be subject to the additional fees. So basically, they're saying that the heavier vehicles cause more pedestrian accidents or more damage when there is a pedestrian accident makes sense. So obviously a lot of EVs now qualify for this. It's an it goes by wait. Like there's a certain way qualification. So the extra fee isn't a lot of 2990 $29.90 every year is going to be charged in Colorado's most populated 12 counties where most of the accidents occur. Senator a State Senator Lisa cutter said quote data shows us higher vehicle weights correlate to vulnerable road deaths. It just makes sense to tie funding to that it's not about disincentivizing the purchase of EVs. It's about rec or heavy vehicles, it's recognizing these are cars that are disproportionately involved in these fatalities. Also sidenote in 2024, Washington DC is actually raising registration fees based on weight. So it's like a little another story from$155 to $500 for any vehicle over 6000 pounds, which a lot of EVs are. And then from $155 to$250 to vehicles over 5000 pounds and 115 175 for vehicles over 3500 pounds. So it seems like they're raising the price on everything but disproportionately EVs are going to be affected. They absolutely
Kyle Mountsier: 9:25
are because most of your EVs are are approaching that success and power
Paul Daly: 9:29
which is a model three way Hold on I'm gonna
Kyle Mountsier: 9:32
do the search live Paul. So here's the thing there's a couple of things at play here because what we what this doesn't this talks a lot about pedestrian and bike accidents and the way that it impacts damages and obviously like we want to take care of make sure that people have these good pathways. So I appreciate like the funnel back and I wonder how I don't know how DC is handling this but we we've talked a little bit about like a year ago there was a lot of stuff coming out about vehicle way and its impact on the actual roads, right? So they're going to have to figure out how to funnel more tax dollars back into not just protecting pedestrians, not just protecting bikers, but also just protecting the longevity of the roads that these heavier vehicles are continuing to drive over. So, you know, innovative approach, it's not that crazy of $1 amount to go after, you know, it stinks if your vehicle registration fees on every year are going up from 89 to 129, or something like that. And we'll see how far they push this as more things come up as vehicle weights raise. So it sets like an interesting precedent, but also probably somewhat necessary. Well, a
Paul Daly: 10:40
little old bitty Tesla Model three tiny little car 3800 to 4200 pounds, so even that little car weighs over car, right? And the nice thing is for people that live where I do in upstate New York is the vehicle weight doesn't matter because the roads are destroyed far before and always.
Kyle Mountsier: 10:58
Anyway from the snow and like we just have an annual repaving.
Paul Daly: 11:04
We put it right on the back of the plow, the plow clears the road and in the summertime it tears up the asphalt It's Ray together. Speaking of
Kyle Mountsier: 11:14
you know, good news in EVs. So a range of automakers are now offering electric vehicle leases for under $400 A month making EVs more accessible to the average consumer and ramping up competition in the market. Here's a few of the automakers that are that are doing this. You've got Nissan, Hyundai and Kia offering the leaf, the ionic six and the Kia Niro, Evie for under $400 a month. A lot of people out there and journalists are pointing to this as a direct response to Tesla's pricing pressure and the increased supply of electric vehicles in the market. So you know, going after Tesla, who continually is dropping prices, as well as the affordability issues in the market,
Paul Daly: 12:01
as well. Nobody wants one problem. No one wants
Kyle Mountsier: 12:04
one. Do we mentioned this is called the troublemaker we met. It's our PR department coming in? Yep. Got it. Understand.
Paul Daly: 12:17
I tendered my resignation. We're gonna save that one for
Kyle Mountsier: 12:20
buyers are also utilizing what's what they're calling a one day lease this least tax loophole which allows vehicles they get the access to the benefit benefits, irrespective of the $7,500 IRA tax credit, income and eligibility. They lease it for one day, and then buy out the lease.
Paul Daly: 12:41
That's not gonna get shut that well, because there's an income requirement maximum required income requirement to get the credit. So like, no, no, they're not buying it. They're leasing it. Yep. For Right, right. Yeah. Be back and buy it tomorrow. That's gonna get shut down real quick. It's got to get shut down. But don't take 90 days at least
Kyle Mountsier: 13:00
everybody's trying to figure out how to get all the money out of the tax incentives get the least amount of payment or pricing that they possibly can. Because affordability is an all time high. And look, if I'm if I've known one thing about Americans, they're resourceful. You know what I mean? They're restored the
Paul Daly: 13:18
entrepreneurial spirit is alive and well. Well, I mean, look, I like the idea of there being some affordable vehicles in the market sub $400 payments are few and far between and the fact that happened to be EVs. There's just so many people were an Eevee lifestyle will actually work in a decent way well, and mileage commuters, people who park in a garage every night like makes so much sense for so many
Kyle Mountsier: 13:43
and leases make the most sense with EVs because of the rapid, rapidly changing technology so to be able to offer an affordable lease on an Eevee. That's the fastest way to adoption. So kudos to the main questions about
Paul Daly: 13:54
battery health, all that stuff. We hope you are having an amazing day and continue to have amazing Wednesday. Make sure you come back. Join us at 2pm for the webinar, go to asotu.com Scroll down a little bit, click on the four eyes webinar. We will see you there.