VinFast Dealerships, Maple Leaf Battery Factory, Jack Dorsey deletes Instagram

Paul Daly: 0:25Okay, we're on the stage here in Baltimore at the Steen of a soda con 2023 collaboration, critical. It is going to be September the night of the 25th. We kick off the welcome reception, and then a full two days we're going to have all the energy, all the experts, all the swag, and all the fields that you expect from the soda verse as we rewrite the narrative around the retail auto industry together. You know that music had been in the field, he had to shake crowd everything. We got Michael Cirillo on the show. This morning. We're going to talk about vinfast dealerships, Maple Leaf battery factory, Michael, just for you this one, and Jack Dorsey deletes Instagram. The people Oh yes. They stopped. Jack Dorsey say good morning, everybody. Welcome to Friday. Kyle's been on vacation all week. So we've had a lot of riffraff just shuffling through the show. Started off with Steve Greenfield. Tuesday wasn't Monday. Who was one day? I don't remember. Steve was Tuesday Wednesday. It was yesterday. Year today. Today's Friday. I'm 90% Sure. Today is Friday. Todd Caputo is Monday. How can I forget? kaput as you call them? Go? Boo. Hey, how was your week been? You and I have been running like in multiple directions haven't really been seen each other.

‍Michael Cirillo: 1:47

Well, that's done me when you texted me. I felt like I had reconnected with a long lost friend.

Paul Daly: 1:55

That's great and sad. All the same. I know it just one. One interesting thing that happened that I wish Kyle was here to celebrate is that one year ago, is when we recorded the first auto collabs episode. And if you don't know what that is, you can just search auto at oC o ll ABS auto collabs. And it's a podcast that myself, Kyle and Michael Cirilo have where we interview people in the industry. And we usually banter on the front end and the back end, and try not to get in trouble. So if you want to have a good time, auto collabs, but that was really the synthesis of kind of our whole relationship. So it was a year ago. I mean, we've known each other for a lot longer. But still,

Michael Cirillo: 2:34

when we're less worried about being cancelled, maybe we'll do the release the the beside release of the banter we have at the beginning, but

Paul Daly: 2:42

that'll be a day in the future. And it'll be called things we can't talk about. And then it'll just be the three of us and our kids will convince us they're actually publishing them but they'll actually just not be going on Discord. Yeah, exclusively on my hard drive. Alright, so we have some fun things to talk about. But first we want to mention a soda con you just saw the preview for it. All the plans are all falling into place. The swag has been order we have some crazy swag. We do have the soccer scarf. Thoughts thanks to our friends at Foundation, who sponsored the swag this year. We also have custom shoe laces pens that we do the notebooks I can't remember we have an awesome swag bag for you this year. But either way, September 26 27th in Baltimore, just north of Annapolis south of the BWI Airport, easy to get to. We have over 1000 rooftops represented already. If you go to the website and just click all speakers, you will see how many dealers and industry front runners there are going to be there. The momentum is building are about to announce a bunch of sponsors on Monday, super exciting moment for us. And we want you to be there. So tickets are still $100 off until September 1. And if your dealership bring a couple people, because when you go back with all the ideas, you have to sell the ideas to your people. But if you bring two or three, you can gang up on some people. So we hope to see you there. Michael is going to be there, aren't you?

Michael Cirillo: 4:00

I'm going to be there. Well, and I'm I'm listening to you talk about it and the value that I mean, you and I and everyone watching or listening has been to 1,000,001 Different automotive conferences. This is so much the case that I almost don't even think of it as an automotive conference because it's never been done like this in our industry before. It's so much fun. So much learning so much collaboration. Yeah. Then and and so I mean, I hate to pull out that 90 saying like, be there be square but that's the way it is. That's well speaking

Paul Daly: 4:38

of collaboration. Our first story today. I actually got really happy when I read this Vietnamese EV maker vinfast Who's we talked about Steve Greenfield on Tuesday, whose market valuation actually briefly surpassed Ford and GM when it debuted earlier this week at like 85 billion, but then has fallen 33% at Steve Greenfield predicted surprise some as it announced its shift in US distribution strategy, namely moving away from Tesla's direct model. And now they're saying, You know what, I think we might want to have some dealerships. So the company has already shipped over 3000 vehicles in North America, but has been plagued by some delivery and quality issues. US dealers are intrigued, but you know, they want some more information. Obviously, CEO late, late, the DOJ, late season, soy of vinfast said opening our own stores is great, but it takes a lot of time, joining forces with other partners to go faster has always been in our nature. And this auto news article that we linked up is so cool, because it has lots of different dealer opinions in here, so we'll read a few for them. And then Mike would love to get your reaction. So Andrew DeFeo, who's actually in a soda investor, and dealer principal at Hyundai of St. Augustine said, the first thing you have to look at is that is this company going to be around in five years. That's a big concern. That's what was quoted in the article I asked him about it separately. And he said, as established brands like with loyal customers, as they you know, as others come out with competitive product, the newer entrants will have a harder time gaining market share without dealerships. But then he goes on to say the car market in the US is the most mature in the world. And the pie of buyers isn't getting any bigger. He says so it doesn't seem like we need more brands. We actually probably need less that sentiment is mimicked by George Glassman, president of Glassman said Is there room for more brands probably but it's too early to tell I need to see more. Our friend Brett Reichard, CEO of record auto, we know ret he said, I'm gonna do if it's a good product and got a great warranty on it. Americans will buy it. That's my rant. Right. You know, and then last but not least, we'll mention here. Bo Bachmann says dealers are entrepreneurial, and they're risk takers. So salespeople love to be sold. But everybody didn't say they loved it. Warren Brown industry consultant and former GM executive said it's a death strategy. There's too much value extracted by serving dealers. I read that I was like, I don't think you understand what's going on around here. He said that's a strategy Wall Street will whip them on. So yeah, we got we got some dissenting opinions. Michael, what is your opinion?

Michael Cirillo: 7:15

My opinion is twofold. One, I can see the sentiment around not needing another brand, especially when brand loyalty is probably a little bit lower than it's been in a while. On the flip side, look at look at what happens in America when the hype train hits. Remember web three.

Paul Daly: 7:36

What web three is like it was crypto, and now it's crypto and AI is web three. Right? Right. And

Michael Cirillo: 7:42

so it'll be AI and next thing you know, we're just gonna be like George Jetson pushing a button and making sprockets.

Paul Daly: 7:50

rakia Collingsworth? Yeah. Got about that.

Michael Cirillo: 7:54

Yeah. And then on the flip side of the coin, you know, who knows, you really don't know what what customers are gonna gravitate towards at certain times or different life stages. So

Paul Daly: 8:06

I think the biggest part of the story that I'm excited about is the fact that it's so easy to crap on the dealership model as from the outside and throw stones at it and say we're going direct to consumer, it's what people really want. And after just a few hiccups, right, like on distribution, you realize like, oh, you know what, having people in the local communities that are vested in customer service vested in making sure the delivery goes well vested in like, being there on site to make sure it works at doesn't sound like such a bad idea. And I love that the perception shift that you know what dealers are, they're actually going to make this thing Well, we talked to, in our first episode of more than cars, we interviewed Peggy PBI tech, and she's like, I'm the one that sits in the car, make sure everything works right before it goes to the customer. And I was like, you can't you can't outsource that one to direct consumer sales, put it on the truck, hope everything goes well. 300 miles away. So it's like, it warms my heart when I read this

Michael Cirillo: 9:06

because I know what a very real example of that is me taking my wife's Tesla through a carwash and having no clue how to pop that sucker in neutral. Oh, and I'm and the things are pulling me forward. Right. And you're

Paul Daly: 9:19

like, and the safety and the safety things in the car probably freaking out. You're like,

Michael Cirillo: 9:25

Oh, you don't have a customer. You don't have a PDI tech.

Paul Daly: 9:28

I don't I don't know who you would have gotten to hey, I don't know. I don't know. Well, I don't know. I just want to just I'm just gonna do the segment speaking of Canada. Segue but well, if you don't know Michael is a Canadian that has moved to Texas. And what did they say in your in your party with similarities between

Michael Cirillo: 9:55

Texas and Canada? Oh, you treasonous traitor. No No they did. The other thing they say they say northern Texas

Paul Daly: 10:08

they didn't say that. They said there's very there's two similarities. like Texas and Canada have a lot in common they both border the United States. That's what they say. They say so many things in Texas that you just have a hard, hard time keeping track. You might have some good perspective on this Ford alongside partners EcoPro, BM company and SK, Ontario company that's a lot of initials are investing over $890 million to establish a battery materials plant. And how do you pronounce this word? It's beyond a core. Oh, yeah, yeah, he a BM for Quebec, the facility named ECO PRO cam Canada set to open in 2026. It makes March Ford's first investment in Quebec aiming to produce materials for for EVs in North America as Evie ecosystem. So it's going to produce 45,000 tons of cathode active materials annually, you know, and they use that for lithium ion batteries. And according to the UN, you know, inflation reduction, that's rules, right? Any battery materials produced in Northern America, including trading partners of the US, like Canada do still qualify for the tax credits. So I don't know Michael, is this like, a unique like geography that they would put it here? Like, do you have some level of perspective on this because you're at national

Unknown: 11:27

and It enrages me instantly? Here's, here's the most up I will say visibly appeared and rage to me. Yeah, here's the most Albertan thing I'll say.

Michael Cirillo: 11:38

Alberta, pretty much supplies all of Canada's economy through our oil and gas exports. And they put all of the tax credits in Quebec like they always have.

Paul Daly: 11:52

Is that how it works? If you didn't know it, that was actually Michael Cirillo making that noise and not a sound trigger. Well, speaking of being triggered, segue. I didn't even wrap that other story, right? To just say anyways, there are no perfect. Well, here's the deal. No one writes them. They just they just happen when they happen. And maybe you missed the one into the Canadian story. But what's really cool, yeah, right. What I am last night, so this is really recent. So just hours ago, Twitter founder Jack Dorsey tweeted, quote, deleted my Instagram account after 12 years was one of the first 10 accounts on the platform, I believe. And the first one of the first angel investors, who will they give the at jack handle to? So responding in the comments, he said, then people say, Well, why did you delete it? And he says, all the reasons are too meta to be interesting. And I don't know if that's a play on words. It's pretty good there. And then asked, Why does he use an iPhone? He said, It's all trade offs, depending on what phone you use. He said, I generally trust Apple more than others, given their business model and stated values, but have been disappointed in their approach to the App Store broadly. So I mean, I know it's not doesn't seem like huge automotive news that Jack Dorsey deleted his Instagram account. But I think it does highlight the fact that people are thinking about privacy. Right. And they also are shifting their attention. Like there's a big online intention shift. And Michael, your your agency flex, you do tons in ad placements and ads and technology. What is your take on the changing ecosystem in general?

Michael Cirillo: 13:32

Well, I think what we're seeing, especially is that, no, you can't do whatever you want big, big box company, that people are starting to stand up and stand out and make their voices heard around things that they don't agree with. And I mean, it should be no surprise that people this day and age support you with their attention. Right. And so, you know, like we hear Gary Vee talks about all the time, what do I do I day trade attention. Right? And, and so, I mean, we're seeing this kind of shift where more and more people are saying, You know what I could do with less of that in my life, or I can do less of this in my life. And I think that needs to be kind of a wake up call for a lot of the big box companies who have gotten away with doing too much for too long, whatever

Paul Daly: 14:21

they want, perhaps, whatever they want, hey, well, one thing's for sure. It's always going to change and the dealers who are paying attention to the change in the industry partners who are paying attention to the change are disproportionately going to win. I just want to take a moment. Thank everyone in the livestream comments, Vince and Adrian, Jeff, Brian. Steven, thanks for being here. Oh, actually, I saw what did I see up early on Bruce Miller, good to see you in here this morning. We really appreciate you being here. We really appreciate the conversation going on. And also, if you don't get the audio version of the podcast, go to Spotify, or go to Apple Music and check out the audio version of the show and just subscribe to it that way. You're In the car, you know, you can catch it and you don't get to see Michael's beautiful face but you can hear his beautiful face. All right, we are heading over to the All Things us cars clubhouse room with David Long right now literally this minute. But if we don't see again don't talk to you again. We hope you have an amazing weekend. Sell some cars love some people