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Episode #1307: Today we’re at the NY Auto Forum (thanks to our friends at Force Marketing) for a day of interviews and content with some of the industry’s finest. Plus, Chinese brands promise profits in Mexico but miss on execution, while GM bets big on trucks as the market softens.

Show Notes with links:

• Chinese automakers are gaining traction globally but early dealer experiences in Mexico are flashing caution signs. While interest is high, profitability struggles and weak factory support are raising red flags for retailers considering jumping in.
  • Mexican dealers ranked BYD as the most desirable new franchise, but it was the only Chinese brand to crack the top 10 in the survey.
  • Many Chinese brands entered Mexico targeting 50,000 annual sales but are achieving closer to half that, leaving dealers chasing volume that is not there.
  • Dealer-factory relations lag significantly, with top legacy brands like Toyota and Chevrolet leading, while Chinese brands like MG ranked 7th, Great Wall 13th, and Chery 15th.
  • Rapid expansion exposed weak aftersales infrastructure, especially in parts distribution and service, limiting customer satisfaction and repeat business.
  • “They arrived focused on selling, selling, selling… there is a lot of work to do… in aftersales service,” said JD Power’s Gerardo Gomez.

• GM is leaning into what’s working. Despite rising gas prices and softer overall sales forecasts, the automaker is boosting heavy-duty truck production, signaling continued strength in one of the industry’s most profitable segments.
  • GM will add a sixth production day at its Flint Assembly plant, increasing output by an estimated 40,000 to 50,000 trucks annually.
  • The plant already produces about 1,100 heavy-duty Silverado and Sierra pickups daily, running three shifts around the clock.
  • The move appears aimed at gaining share from Ford, which is also ramping production and skipping summer shutdowns to keep up.
  • Heavy-duty trucks remain profit drivers, with prices starting around $50,000 and often reaching six figures with options.
  • GM CFO Paul Jacobson doesn’t think the current economic climate will affect demand yet, saying: “Usually it takes four to six months of sustained, high oil prices before people start to think… maybe I should buy down.”

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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Episode #1306: A surge of off-lease EVs could bring billions in losses and create new opportunities for dealers. Meanwhile, battery breakthroughs are back in the spotlight, and Gen Z is reshaping how brands earn attention and loyalty.

Show Notes with links:

• A flood of off-lease EVs is heading back to market, and they’re not worth what anyone thought. With resale values dropping fast, automakers and lenders are staring down billions in losses, and dealers are about to become the pressure valve.
  • EV leases are coming back worth ~$10K less than expected, creating a potential $8B industry loss by 2028.
  • Off-lease EV volume will surge to nearly 800,000 units, doubling share of used supply in just a few years.
  • Tesla and GM carry the biggest exposure, with ~229K and ~102K leased EVs respectively in 2025.
  • Captive lenders are leaning on dealers and auctions, offering faster remarketing, incentives, and even CPO lease pilots to move units.
  • David Whiston, Morningstar: “I don’t see anything good about this for the captives… but it is not going to bankrupt anybody.”

• For years, EV critics have pointed to battery limitations, and they weren’t wrong. Now new solid-state claims are emerging as the industry continues working toward longer range, faster charging, and lower costs.
  • Finnish startup Donut Lab claims a 5-minute charging, 800+ mile solid-state battery, but most of the industry is skeptical.
  • Solid-state batteries could double range, cut weight, and eliminate many EV pain points—if they actually scale.
  • Meanwhile, today’s tech is quietly improving fast, with China pushing 10-minute charging and 600+ mile ranges using existing batteries.
  • OEMs like Toyota, Mercedes, and GM are all racing toward solid-state, but timelines still point to late-decade reality, not tomorrow.
  • Kurt Kelty, GM’s vice president of batteries and sustainability was skeptical: “Most ‘eye-popping’ announcements are more buzz than substance.”

• Gen Z is paying less attention to big brands. And that shift is starting to change how products get noticed and chosen.
  • Gen Z still picks national brands most often, but gives them 24% less attention than boomers.
  • Nearly 40% of Gen Z decisions hinge on factors many brands miss—modern design, clear messaging, values, and scroll-stopping packaging.
  • Younger buyers are trading down in staples while spending more on identity-driven categories like wellness and beauty.
  • Traditional brand recognition is weakening as private label and challenger brands gain visibility.
  • Viki Zabala, First Insight: “The shelf functions like a social feed — and Gen Z scrolls past what feels dated.”

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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Today, Head Writer Chris Reeves brings a story from our good friends at Carter Myers Automotive of how they do a weekly "Touch-A-Truck" event with the goal of showing kids that retail auto is an industry worth fighting to join.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/