Latest / CBT Live / $10K Car-Loan Deduction, Trump Open to Chinese Plants, Tesla Takes 52% of EVs (09.14.26)

Transcript

$10K Car-Loan Deduction, Trump Open to Chinese Plants, Tesla Takes 52% of EVs (09.14.26) · CBT Live

0:00
SPEAKER_06: I'm Jim Fitzpatrick.
0:01
SPEAKER_06: Thanks so much for joining us this morning.
0:02
SPEAKER_06: Another edition of CBT Live, right here at the CBT Automotive Network.
0:06
SPEAKER_06: It is Monday, September 14th, and I'm joined by Bridget Fitzpatrick, my partner in crime here.
0:12
SPEAKER_03: Hello, everyone.
0:13
SPEAKER_03: Nice to see you today.
0:14
SPEAKER_03: Hope you all had a great weekend.
0:15
SPEAKER_06: Yes, it was a great weekend.
0:16
SPEAKER_06: A great football weekend, by the way.
0:18
SPEAKER_03: It was.
0:18
SPEAKER_03: It was.
0:19
SPEAKER_03: How about the uh Texas Ohio State game?
0:21
SPEAKER_03: That was pretty incredible.
0:23
SPEAKER_03: It really was.
0:23
SPEAKER_03: Record breaking comeback there.
0:25
SPEAKER_06: That was Yeah, that was fun to watch.
0:26
SPEAKER_06: And Josh Allen doing his Josh Allen things.
0:29
SPEAKER_03: He was doing Josh Allen things.
0:30
SPEAKER_03: That's right.
0:31
SPEAKER_03: No, it was a fun weekend.
0:32
SPEAKER_06: It was a lot of fun.
0:32
SPEAKER_06: It was a good question.
0:34
SPEAKER_03: Also, some interest interesting comments from the president.
0:38
SPEAKER_06: You thought those were interesting?
0:39
SPEAKER_03: They were very interesting.
0:40
SPEAKER_06: Why do we feel like maybe he's listening to the As many of you know that watch our show and my show at Inside Automotive, you know, early on I said that it was okay to um, from my perspective, to allow the Chinese vehicles to come in, right?
0:56
SPEAKER_06: Well, this got Senator Bernie Marino upset and we became on the show, and of course, people like Don Hall and everyone else kind of came down on me and said, There's no way we can't let the Chinese vehicles in.
1:06
SPEAKER_06: I had always said to them that it listen, if you put guardrails in place and you make it that there's a heavy uh tariff on there, you limit it to a few hundred thousand vehicles a year out of sixteen point three million SAR, but you also make sure that they build a factory here, you know, over the next three to four years.
1:25
SPEAKER_06: Nope, you're crazy.
1:26
SPEAKER_06: We gotta get make sure they're totally out.
1:31
SPEAKER_06: This is what we heard, there's no way we can allow these people in the United States, okay?
1:35
SPEAKER_06: Let me uh cut to this video real quick and then and then we can talk about it.
1:40
SPEAKER_02: Now, if China wanted to come in and open a plant to build their cars here, I'd be okay with that.
1:46
SPEAKER_02: Japan does it, but they hire our people.
1:48
SPEAKER_02: The big thing is they hire our people.
1:50
SPEAKER_02: They use our people.
1:51
SPEAKER_02: Uh, what I don't want is them to build in Mexico and just, you know, build it inexpensively and ship it across the border.
1:57
SPEAKER_02: They pay this room.
1:58
SPEAKER_02: It's a total phony rumor I'm the one that has a 150 percent tariff on any car from China.
2:03
SPEAKER_02: You know how many Chinese cars we have in the United States?
2:06
SPEAKER_02: None.
2:06
SPEAKER_02: And you're you're pledging tonight that none will be in the United States.
2:09
SPEAKER_02: I've never even heard about it.
2:10
SPEAKER_02: She messed it up.
2:11
SPEAKER_02: It's just fake news.
2:12
SPEAKER_02: It's just these people are very dishonest.
2:14
SPEAKER_02: They're very dishonest.
2:15
SPEAKER_02: She's doing a terrible job, by the way.
2:17
SPEAKER_02: But uh, like most of them, I mean, most of the radical left are ruining their states, they're ruining their cities.
2:23
SPEAKER_02: I know nothing about it.
2:24
SPEAKER_02: I know nothing about BYD.
2:27
SPEAKER_02: I'm the only one that stopped them from coming in.
2:29
SPEAKER_02: They've destroyed, you know, they're destroying Germany, they're ruining Mercedes, they're ruining BMW.
2:35
SPEAKER_02: And if you go to Europe, you look at what's going on.
2:37
SPEAKER_02: It's like an avalanche of Chinese cars, and I'm not knocking Chinese, I'm not knocking Chinese cars.
2:42
SPEAKER_06: I'm paraphrasing here, but he is open to the fact that Chinese vehicles would be allowed into the U.S.
2:47
SPEAKER_06: and to build a factory here.
2:49
SPEAKER_06: So I'm thinking to myself, wow, I think.
2:52
SPEAKER_03: Yeah, it was so long as they did build the factory, they couldn't.
2:54
SPEAKER_03: Well, I always said that too.
2:56
SPEAKER_06: I know.
2:57
SPEAKER_06: You know, what's going on here?
2:59
SPEAKER_06: You know, that it listen, we are on, as Michael Dunn will tell you, he's the foremost authority on all Chinese vehicles, we're on an island here in the in the entire world that we're the only ones not selling Chinese vehicles.
3:10
SPEAKER_06: Now, there's a lot of, you know, uh great points to be made as to why we shouldn't and what it would do.
3:15
SPEAKER_06: But at the same time, right.
3:16
SPEAKER_03: It does make me curious.
3:18
SPEAKER_03: Is Trump not worried about security now?
3:21
SPEAKER_03: Because that was such a heavy topic about why we weren't letting them in.
3:23
SPEAKER_03: But I guess if they're manufactured here, but they're still manufactured.
3:26
SPEAKER_03: Right.
3:26
SPEAKER_03: But it's still Chinese.
3:27
SPEAKER_06: And the parts are Chinese and what happened.
3:29
SPEAKER_06: Yeah, it's a little we're sending out a lot of different signals here.
3:32
SPEAKER_06: Something tells me that in the course of the next three to five years, we're gonna see Chinese vehicles on our roads.
3:38
SPEAKER_03: And then just last week we talked about the Alliance for Automotive Innovation and they're trying to put a pr a permanent ban on imports, um, even being manufactured here.
3:48
SPEAKER_03: So how do they do that?
3:51
SPEAKER_06: I don't know.
3:51
SPEAKER_06: That's crazy.
3:52
SPEAKER_06: I don't know.
3:53
SPEAKER_06: That's well.
3:54
SPEAKER_03: So anyway, it's gonna be something that we'll be following.
3:56
SPEAKER_03: There is more coverage on cbtnews.com, so be sure to check that out.
3:59
SPEAKER_03: Um it's but yes, a little bit it's confusing.
4:02
SPEAKER_06: That's right.
4:02
SPEAKER_06: That's right.
4:03
SPEAKER_06: Well, coming up, we've got a a good uh I should say a a good show.
4:07
SPEAKER_06: We've got a great show.
4:08
SPEAKER_06: We've got a great show coming up for sure.
4:10
SPEAKER_06: Not just a good show, but a great show.
4:11
SPEAKER_06: In fact, we're gonna be joined here by Jeremy Beaver, who is the CEO of Del Grande uh Dealer Group, and uh, and then we'll also be joined by uh Ed Garston, who's a senior contributor at Forbes.com.
4:22
SPEAKER_06: I've been watching Ed for years.
4:24
SPEAKER_06: He I saw him on CNN and I loved all of his reporting on the auto industry, and and uh he's just a great guy.
4:30
SPEAKER_03: Does a great job.
4:31
SPEAKER_06: He really is, no question.
4:32
SPEAKER_03: We've got a few stories to go over before we get to those great interviews, and I would like to thank today's sponsor, which is Radar by Auto AI.
4:40
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4:44
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4:47
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4:57
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5:01
SPEAKER_03: Really innovative company.
5:03
SPEAKER_06: We we had uh on the show um the CEO of of uh Radar AI, and let me tell you, this is like a no-brainer for dealers.
5:11
SPEAKER_06: For 299 bucks a month, they're going to completely keep you safe in terms of what the FTC is looking for with regard to compliance.
5:20
SPEAKER_06: So uh for dealers that are out there that are looking to sleep better at night and make sure that your websites, your social media, everything is in line.
5:28
SPEAKER_06: Um, radar AI is a phenomenal tool.
5:30
SPEAKER_03: Yeah, and if you missed that interview, be sure to take a look at the interview with Vince that we did last week.
5:34
SPEAKER_03: You can catch that on cbtnews.com.
5:36
SPEAKER_03: Absolutely.
5:37
SPEAKER_03: But let's talk about a little few news stories here.
5:38
SPEAKER_03: The IRS has finalized the rules around the new auto loan interest deduction.
5:43
SPEAKER_03: Good.
5:43
SPEAKER_03: This is interesting.
5:44
SPEAKER_03: Yes.
5:44
SPEAKER_03: That's great.
5:45
SPEAKER_03: Eligible buyers can deduct up to$10,000 a year in interest paid on qualifying new vehicle loans from 2025 to 2028.
5:53
SPEAKER_03: Now there are some important restrictions.
5:56
SPEAKER_03: The vehicle has to be new, purchased for personal use, and be finally assembled here in the U.S.
6:02
SPEAKER_03: Used vehicles do not qualify.
6:04
SPEAKER_06: Okay.
6:04
SPEAKER_03: Some more limits are the deduction big begins phasing out at$100,000 in adjusted gross income for individuals and$200,000 for married couples filing jointly.
6:14
SPEAKER_03: So that's interesting.
6:15
SPEAKER_06: Yeah, that is good.
6:18
SPEAKER_06: I think it'll do that.
6:19
SPEAKER_06: I think it'll also put people in the market.
6:23
SPEAKER_06: Right now, affordability is such a hot topic, as all of you know.
6:26
SPEAKER_06: So any kind of relief anywhere is going to help.
6:29
SPEAKER_06: You know, no question.
6:30
SPEAKER_06: And that could be substantial for you know a$60,000 vehicle.
6:33
SPEAKER_06: Right.
6:33
SPEAKER_06: You know, for a working class family.
6:35
SPEAKER_06: And you know really good.
6:37
SPEAKER_06: Every every little bit helps for sure.
6:39
SPEAKER_03: According to Cox Automotive, the average used vehicle listing price reached$27,239 in August.
6:46
SPEAKER_03: That's up seven percent from a year ago, and is uh the highest monthly average that we've seen since December of 2022.
6:54
SPEAKER_03: So yeah.
6:55
SPEAKER_03: And at the same time, inventory tightened slightly to about 2.13 million vehicles with today's supply dropping to 44 days.
7:03
SPEAKER_06: Okay.
7:03
SPEAKER_06: Yeah.
7:04
SPEAKER_06: Yeah.
7:04
SPEAKER_06: We'll get uh I want to get Jeremy's take on that.
7:07
SPEAKER_03: Absolutely.
7:08
SPEAKER_03: Absolutely.
7:09
SPEAKER_03: And then finally, GM pushes for domestic battery supply as China's scrutiny intensifies.
7:14
SPEAKER_03: GM is working to build a more domestic battery supply chain with its battery team developing next generation cells aimed at reducing uh dependence on China over the next several years.
7:25
SPEAKER_03: This is all while Ford and Jim Farley are being criticized in Washington for their relationships with Chinese companies.
7:32
SPEAKER_06: Yes, he's under a lot of he's under a lot of scrutiny right now.
7:35
SPEAKER_06: He is a good thing.
7:39
SPEAKER_06: But it's all so confusing.
7:40
SPEAKER_06: It gets back to what is the what's the goal here, what's really gonna happen.
7:44
SPEAKER_06: Jim Farley is ringing that bell to say, hey guys, that you know, we've got to deal with these Chinese all over the world.
7:50
SPEAKER_06: And you know, if you're not going to at least allow us to partner with them on some of these very crucial items that go into vehicles, what are you doing?
7:57
SPEAKER_06: You're tying our hands, and and uh it it's you know, it's I I'm I'm with Jim Farley.
8:03
SPEAKER_06: I think it's gonna happen where we're gonna see them here.
8:06
SPEAKER_06: You know, but he is under a tremendous amount of ridicule from you know the Secretary of Transportation, Sean Duffy.
8:14
SPEAKER_03: So we've got one more here.
8:15
SPEAKER_03: Tesla reclaims 52 percent of US EV market.
8:19
SPEAKER_03: Okay, Tesla has actually increased its shares of US EV sales, even though Tesla itself is selling fewer vehicles.
8:26
SPEAKER_03: According to motor intelligence data reported by the Wall Street Journal, Tesla accounted for 52 percent of US EV sales through August, and that's up from 43 percent a year ago.
8:35
SPEAKER_03: But Tesla US sales are down about 16 percent of what's happening here.
8:39
SPEAKER_03: The overall EV market has fallen roughly 30 percent.
8:43
SPEAKER_03: And several legacy automakers have been scaling back EV production and eliminating eliminating certain programs.
8:50
SPEAKER_03: So that's interesting.
8:52
SPEAKER_03: The Model Y alone now accounts for one-third of U.S.
8:55
SPEAKER_03: EV sales so far this year.
8:57
SPEAKER_06: It's all those crazy people in Northern California that are, you know, that uh that are you know what I mean?
9:03
SPEAKER_06: We'll get Jeremy's take on that too.
9:06
SPEAKER_06: We've got a lot to talk about with the Jeremy, right?
9:09
SPEAKER_06: What say you about Deslin?
9:12
SPEAKER_06: That's right.
9:13
SPEAKER_03: All right.
9:14
SPEAKER_03: So Dell Grand Dealer Group has built one of the largest family-owned dealer groups in the country with a broad mix of brands across Silicon Valley.
9:23
SPEAKER_03: That's right.
9:23
SPEAKER_03: Jeremy Beaver is the CEO of Dell Grand Dealer Group, and he joins us now live.
9:28
SPEAKER_03: Welcome to the show, Jeremy.
9:31
SPEAKER_05: Oh, thanks for having me.
9:32
SPEAKER_05: I'm not sure I like these topics that I've been hearing.
9:35
SPEAKER_03: We're gonna talk about some good stuff too.
9:36
SPEAKER_03: It's right here, so let's go.
9:38
SPEAKER_03: Yeah.
9:38
SPEAKER_06: We're blaming you for Tesla.
9:40
SPEAKER_06: We're gonna blame you for pretty much everything.
9:43
SPEAKER_06: No, it's great to have you.
9:44
SPEAKER_06: Thanks so much for taking the time out of your busy schedule there to join us.
9:47
SPEAKER_06: Always great catching up with you.
9:48
SPEAKER_06: So it is amazing, though, that that uh Tesla's back in the in the in the winner's seat here, right?
9:55
SPEAKER_05: Yeah, I think, you know, well, what I guess we're in the heart of it all here in Silicon Valley.
9:59
SPEAKER_05: So good EVs, bad EVs, I mean any of it, uh, it's happening.
10:03
SPEAKER_05: Um, you know, I think it has softened obviously this year uh from you know the tax credits in the prior year.
10:08
SPEAKER_05: Sure.
10:09
SPEAKER_05: But you know, consumers are still looking for those.
10:11
SPEAKER_05: There's obviously a lot of buzz around that the taxis and being able to be there.
10:16
SPEAKER_05: So I think for us, um, you know, we'll we still think that there is room in the EV market.
10:21
SPEAKER_05: We've seen a lot of the OEMs continue to retool via hybrid and and a lot of the brands be really strong there.
10:27
SPEAKER_05: But we just we don't think EVs are going away.
10:30
SPEAKER_05: The per penetration has gone down, but it's there still is a place.
10:33
SPEAKER_05: And um, you know, we have an infrastructure out here in Silicon Valley that's very different than the rest of the United States.
10:40
SPEAKER_05: And so I think it's just kind of the ebb and flow to get to where that is as the uh OEMs come out with these next vehicles.
10:46
SPEAKER_06: Sure.
10:47
SPEAKER_06: Where you are is kind of the epicenter, uh, it's kind of ground zero, if you will, for EVs, right?
10:52
SPEAKER_06: How what what percentage of your overall uh performance there is based on EV sales?
10:57
SPEAKER_05: Yeah, well, last year we were roughly about 40 percent alternative powertrain.
11:01
SPEAKER_05: This year we're down to 20 percent.
11:03
SPEAKER_05: So there has been a pretty significant drop when you think about that.
11:06
SPEAKER_05: And yeah, um, you know, those buyers necessarily have not come back into the market uh for us.
11:11
SPEAKER_05: Some of them have gone to hybrid, some of them have gone to, you know, still really good gas mileage, cheaper new cars.
11:17
SPEAKER_05: Um, but in general, we've actually seen that segment kind of hold on for a bit.
11:21
SPEAKER_05: A lot of those consumers used to lease those cars, you know, have them for a couple years, then just get a new one and uh use the carpool lane, use that Google charging, that Apple charging.
11:31
SPEAKER_05: Um, and they haven't necessarily come back, but um, you know, there still again is a place.
11:36
SPEAKER_05: We have seen a little bit of the used car pickup in the EVs, those$20,000 to$25,000 EVs off-lease.
11:43
SPEAKER_05: That's been a good market.
11:44
SPEAKER_05: Um, but gosh, uh, you know, not a lot of things keep me up at night, but that is an ever-changing uh environment out here in the Bay Area.
11:51
SPEAKER_06: Yeah, it's gotta be difficult to put a number on on some of these EVs that come in on trade.
11:56
SPEAKER_06: In fact, do you take many Teslas in on trade?
11:59
SPEAKER_05: Yeah, we've had a tricky couple years on those uh on those Teslas, right?
12:03
SPEAKER_05: Depending on what uh Elon Musk you know tweets or X's about on those new car prices.
12:08
SPEAKER_05: So we've had some good runs and some bad runs.
12:11
SPEAKER_05: Uh we try to be really, really dynamic, you know, make sure that we are putting the right dollars on the vehicles, moving them quickly.
12:18
SPEAKER_05: Um, but you know, there again, there is just a high demand for cheaper quality used vehicles, especially EVs that still have range that are in the range of you know twenty to thirty thousand dollars.
12:29
SPEAKER_05: And so um it's a great used car for us in the market.
12:32
SPEAKER_05: Um, but like exactly like you said, uh, all of a sudden those cars drop by 10%.
12:37
SPEAKER_05: Uh not that fun around here at DGDG.
12:39
SPEAKER_06: No, I can imagine.
12:40
SPEAKER_06: I can imagine.
12:41
SPEAKER_06: Who put that number on that car comes Monday morning, right?
12:44
SPEAKER_06: So talk to us about business overall across all of the brands for your group.
12:49
SPEAKER_06: Um, you've got uh your hand on the pulse of uh what's happening in the marketplace up there in California.
12:54
SPEAKER_06: What uh how is business?
12:56
SPEAKER_05: Yeah, you know, it's uh it's been a another, you know, I'd say a good year for us.
13:01
SPEAKER_05: I think we've definitely seen uh some pretty significant new car drop-offs because of the EVs and you know that the tax credit that was there was such a large part of our business.
13:10
SPEAKER_05: Um we've done as an organization a really, really good job growing our used cars, our acquisition through our trade-ins, through our service drive, through our buy from the public strategies to be able to kind of make up that difference.
13:22
SPEAKER_05: Fixed operations continues to, you know, be strong.
13:26
SPEAKER_05: And then, you know, as you know, with us, we're focused on technology, uh really focused on efficiency through technology, through AI, through being able to have you know our team be more productive.
13:37
SPEAKER_05: We now have 1,100 team members, uh, 15 years in a row, top workplace.
13:41
SPEAKER_05: So uh we got a lot going on here as always.
13:44
SPEAKER_05: You know, I guess as long as I'm leading the helm, we're gonna always try new stuff, probably break more stuff than we should be doing around here.
13:50
SPEAKER_05: But um it's a I would say it's a good year.
13:53
SPEAKER_05: We don't expect a record year, but we are hyper, hyper engaged to, you know, operate this business at its best.
13:59
SPEAKER_06: Sure, sure.
14:00
SPEAKER_06: Um you are you guys have built an incredible culture there uh in in your group, and I know that you've got uh something that's called the uh the uh the the Project 100.
14:10
SPEAKER_06: Um talk to us about that.
14:12
SPEAKER_05: Yeah, you know, Project 100 was actually founded in 1976 by Sean DelGran's dad, Kevin DelGran, and it really was just a strategy of making sure that every guest can be taken care of, and that's really our mindset with our entire team.
14:26
SPEAKER_05: Where any wasn't anyone is empowered at any time to take care of a guest.
14:30
SPEAKER_05: Um, you know, they come in for an oil change, maybe it takes too long, and we just want to cover that, we can do that.
14:35
SPEAKER_05: Um, you know, someone buys a car and um, you know, they had it for four or five days, and their significant other has them sleeping on the couch, uh, they can bring it back, you know.
14:43
SPEAKER_05: So there's not uh one car deal that uh or or one you know repair order that's gonna change our business in a bad way.
14:50
SPEAKER_05: And so we try to do the right thing.
14:52
SPEAKER_05: Now, you know, sometimes maybe we get taken advantage a little bit with that, but um, it's a good way for us to to really live our life.
14:59
SPEAKER_05: And and then that really couples in with our foundation, which is DGDG Does Good, which is a foundation that we started five years ago after you know decades of making an impact in our community, and so being able to um you know help kids and families in need in the Bay Area.
15:15
SPEAKER_05: So it not only becomes this guest experience focus of Project 100, but also something that we can live out in our community uh to make an impact every single day.
15:25
SPEAKER_06: Yeah, that's great.
15:26
SPEAKER_06: That's great.
15:26
SPEAKER_06: And and therefore your um your turnover uh is is much lower than the industry standard, right?
15:33
SPEAKER_06: And that's what it's all about today.
15:35
SPEAKER_06: It's about keeping good people on board that don't leave the organization, right?
15:39
SPEAKER_05: Yeah, it's the hardest thing, uh I think to do in any business, and then you know, bringing the car business makes it even more tricky with kind of the long-term attrition rates.
15:47
SPEAKER_05: We run roughly about a third of the industry from an attrition standpoint.
15:51
SPEAKER_05: We really focus on promoting from within, having very, very clear career paths and training programs.
15:58
SPEAKER_05: And then, you know, it just is a kind of a top-of-mind uh situation on trying to hit record promotions this year, which we're gonna have over a hundred promotions in the organization.
16:07
SPEAKER_05: So more than 10% of the team is gonna have some sort of promotion this year, which is how we believe that people can make more money, stay here, you know, obviously live in the Bay Area.
16:18
SPEAKER_05: Um, and it's just something that we really care about here.
16:20
SPEAKER_06: Yeah, that that's fantastic.
16:22
SPEAKER_06: Now, in your group, um, you've got an Audi store, right?
16:25
SPEAKER_05: We do.
16:26
SPEAKER_06: Yeah.
16:26
SPEAKER_06: Um talk to me about that.
16:28
SPEAKER_06: Um we've had some uh we've had a uh owner of an Audi store on recently, and uh he shared his thoughts.
16:34
SPEAKER_06: I don't know if you were able to catch that or not, but uh from Joe Laham up in the Northeast, and uh and it really got a lot of a lot of dealers talking online and a lot of comments made.
16:46
SPEAKER_06: Um where do you see Audi right now as a as a as a brand?
16:50
SPEAKER_06: And and what do you think some of the concerns are out there uh from a dealer's perspective to get that brand going again?
16:58
SPEAKER_05: Yeah, I think in general, um, you know, we've had the store for a couple years, and you know, brands do do go through a cycle.
17:04
SPEAKER_05: So, you know, at any uh, you know, it takes a long time when you have product to get new product, it just can't you can't switch these things overnight.
17:11
SPEAKER_05: They obviously were betting, you know, pretty heavy on the EVs.
17:14
SPEAKER_05: There were some pretty expensive cars in that segment.
17:17
SPEAKER_05: Um, and you know, it definitely was a time to retool.
17:20
SPEAKER_05: Um, what I have seen over the last little bit of you know, the product that is coming, and you know, we are believers.
17:27
SPEAKER_05: We believe that, you know, Audi will have a continued turnaround, they will have the right products in the market.
17:33
SPEAKER_05: I mean, they are pretty good looking cars, and yeah, historically they've done, you know, really well.
17:37
SPEAKER_05: Um, does every dealer want it to happen faster, sooner, you know, all of those things?
17:42
SPEAKER_05: Absolutely.
17:42
SPEAKER_05: Um, because you know the demand is not as strong as it once was.
17:46
SPEAKER_05: Sure.
17:46
SPEAKER_05: But um, in general, I think that, you know, if I was, you know, a betting man, I would say like we are very bullish on, you know, where Audi can be over the next couple years.
17:56
SPEAKER_05: But at the end of the day, you know, ideas and showing things, you know, on a presentation is great.
18:02
SPEAKER_05: Execution is better, right?
18:03
SPEAKER_05: And so making sure that, you know, they don't, you know, underpromise and or they that they do can they can underpromise and over-deliver is, I think, a really important piece.
18:13
SPEAKER_05: Um, really getting dealer feedback, making sure they have the right product for the US market.
18:17
SPEAKER_05: Um, and then, you know, price points, incentives, um, you know, those items that we've seen so many manufacturers uh master over the years.
18:26
SPEAKER_05: Uh what a great time for them to really uh double down and come to market with just you know amazing products at the right time.
18:34
SPEAKER_05: It could be a real success story if done properly.
18:36
SPEAKER_06: That's right.
18:37
SPEAKER_06: That's right.
18:37
SPEAKER_06: I agree.
18:37
SPEAKER_06: I agree.
18:38
SPEAKER_06: Um, switch gears a little bit.
18:39
SPEAKER_06: You're also a Ford dealer.
18:41
SPEAKER_06: And uh the president of Ford, as you know, Jim Farley, you know where this is going.
18:45
SPEAKER_06: But uh, you know, feels as though, hey, we've got to have a relationship with China, and it looks as though, from his perspective, he told his teammates, uh, his his team members there a couple of weeks ago that it he feels it's inevitable that we're gonna see Chinese vehicles, you know, come on our shores here uh in the in the U.S.
19:02
SPEAKER_06: and we'll be selling them.
19:03
SPEAKER_06: What is your take on that idea of Chinese vehicles being sold here?
19:08
SPEAKER_06: Is that is that a threat to uh to the overmall overall auto industry as we know it?
19:14
SPEAKER_05: Yeah, well God, I get no layups today.
19:16
SPEAKER_05: I'll just like straight in.
19:17
SPEAKER_05: So this is good.
19:18
SPEAKER_05: Um yeah, you know, I think for us, we probably have a pretty strong take just because of the EV ratio of percentage of sales that we've had over the last couple years.
19:26
SPEAKER_05: Um I've seen some of these cars, I've watched it in other markets.
19:30
SPEAKER_05: Um, you know, I don't have the crystal ball, but it seems like um the vehicles that are from China, you know, are really good price points, you know, longevity, you know, high ranges, uh, they are pretty, you know, significant when it would come to market.
19:44
SPEAKER_05: I think that um, you know, if if the OEMs will continue to build cars that have, you know, longer ranges at the right price point, especially, you know, all of our brands, there should be room for everyone here uh to be able to sell cars in the American market.
19:59
SPEAKER_05: I think um you were actually the one to say like there's 16 million new cars sold.
20:03
SPEAKER_05: You know, that's a that's a percentage that's there.
20:05
SPEAKER_05: But I do think that um competition and healthy competition will help many of our manufacturers um to do you know a better job, faster, cheaper, um, or have these combination strategies where all boats really rise.
20:19
SPEAKER_05: And I think, you know, as a car dealer here, you know, I don't want to see um, you know, more and more brands pop up that are not franchises because I think that's you know our business model.
20:29
SPEAKER_05: But I do want to see the OEMs continue to collaborate and get better and have a better product for the market and for the consumers.
20:36
SPEAKER_05: And then that will drive more demand to our industry.
20:39
SPEAKER_05: That will have more people talking.
20:41
SPEAKER_05: It is very similar, in my opinion, to Tesla, which was, you know, it has made an impact on the business in many different areas, but you've never heard people talk about Tesla more, talk about the auto industry.
20:53
SPEAKER_05: Um OEMs get better in a lot of their technology and integrations.
20:57
SPEAKER_05: And so I do believe that it is important to have healthy competition um in, you know, a proper box for it to be able to, you know, impact the United States.
21:08
SPEAKER_05: And at the end of the day, you know, I live in America and I'm an American, so I want, you know, America to thrive.
21:14
SPEAKER_05: And so I think we just have to have those proper, you know, rules and regulations for us to, you know, all be safe.
21:20
SPEAKER_06: Yeah, I agree.
21:21
SPEAKER_06: I agree.
21:21
SPEAKER_06: And I agree with you in the in the sense that I think it would, you know, if it's brought in, you know, they they allow maybe a few hundred thousand vehicles in or what have you with the certain guardrails in place, that it would apply some pressure to Detroit and the other automakers to step up and say, well, we really we really gotta find a way to compete with the with the Chinese vehicles, both on the technology side.
21:44
SPEAKER_06: Obviously, the pricing side's a little sticky there because they're subsidized by the Chinese government.
21:49
SPEAKER_06: But nevertheless, when it comes to batteries and the longevity of them and the styling of the cars and the technology, that's something we should be able to win, right?
21:58
SPEAKER_05: Yeah, and I think I think that's exactly.
22:00
SPEAKER_05: And I think what the you know, if you take that a little bit further, you can definitely bring cars in and sell them, but then you really got to figure out this service mechanism of you know having the parts and getting the cars service and having these retail outlets.
22:12
SPEAKER_05: It's not it's not really that easy here in America to go build these massive service outlets.
22:17
SPEAKER_05: You know, you can look at you know, even Tesla or the Lucids or or the Rivians, like it's just tricky because of high cost and buildings and locations and all that other stuff.
22:27
SPEAKER_05: And so um it takes a lot of time, a lot of money.
22:30
SPEAKER_05: Um, and so again, I'm I'm on the if there is a better product, then how can we take the brands and everyone get better, use that tech, you know, have much more of a kind of a collaboration as opposed to kind of an overtaking strategy, which I think is a little bit tricky.
22:45
SPEAKER_06: Yeah, yeah.
22:46
SPEAKER_06: Will we see any more acquisitions coming out of DGDG this year?
22:50
SPEAKER_06: Or we're trying.
22:51
SPEAKER_05: Yeah, we're trying.
22:52
SPEAKER_05: We bought a Honda store roughly 90 days ago, which was great.
22:54
SPEAKER_05: Our second Honda store.
22:56
SPEAKER_05: We are really excited.
22:57
SPEAKER_05: Um we are definitely um in market.
22:59
SPEAKER_05: We are uh hopefully next time we're talking, we've added some more, uh, some large ones here and major metros.
23:04
SPEAKER_05: Nice.
23:05
SPEAKER_05: But you know, for us, you know, we're trying to, you know, find businesses that fit our model, which uh, you know, has have culture.
23:11
SPEAKER_05: We can apply our technology, um, you know, and really just go in.
23:15
SPEAKER_05: And um, there's so many great auto dealers across the country that you know sometimes that they either want to retire, they want to, you know, step aside, or they don't want to deal with all the craziness that you've asked me today.
23:26
SPEAKER_05: Um, you know, we're we're the perfect buyers for those situations.
23:30
SPEAKER_05: But um, you know, California is our market, Northern California is even better.
23:34
SPEAKER_05: And so um, yeah, we're hoping we're in growth mode, we're playing offense, and uh we are built to win, that's for sure.
23:40
SPEAKER_06: That's awesome.
23:41
SPEAKER_06: Last question.
23:42
SPEAKER_06: Uh anything that keeps you up at night about the industry or about the market in as as in general uh as we go into the last quarter of 2026?
23:51
SPEAKER_05: No, just having interviews with you on all these questions.
23:57
SPEAKER_05: You know, I think that we are still bullish.
23:59
SPEAKER_05: Um, you know, I think the macroeconomics are a little tricky right now with just cost, I think, between you know gas prices and then the average monthly payment of new cars and that is it's you know very ebb and flow for us here in the Bay Area.
24:11
SPEAKER_05: And so um, we're hoping for any good news um that we can you know get a little more demand um out here.
24:16
SPEAKER_05: But in general, these are still really good businesses with great people, and so we're uh we're gonna keep doing what we're doing and uh and keep our head down and and do our best.
24:25
SPEAKER_06: That's fantastic.
24:26
SPEAKER_06: Thank you so much.
24:27
SPEAKER_06: I really appreciate it.
24:28
SPEAKER_06: Jeremy Beaver.
24:28
SPEAKER_06: Great job, Jeremy.
24:29
SPEAKER_06: Thank you.
24:31
SPEAKER_06: Speaking very candidly and very enthusiastic, by the way, about the end end of this year and his business as a whole.
24:36
SPEAKER_06: Man, thanks so much.
24:37
SPEAKER_06: Really appreciate catching up with you.
24:38
SPEAKER_06: Thank you for having me.
24:39
SPEAKER_06: All right, best of luck.
24:40
SPEAKER_06: Thanks.
24:41
SPEAKER_06: Great guy.
24:42
SPEAKER_03: Great guy.
24:42
SPEAKER_03: And you did you were throwing up the questions.
24:44
SPEAKER_03: I know, and he didn't.
24:45
SPEAKER_03: He handled them very well.
24:46
SPEAKER_03: He's like, he wasn't.
24:47
SPEAKER_03: He's like, I'll go.
24:48
SPEAKER_03: He's gonna got it.
24:49
SPEAKER_06: You run's a great company.
24:50
SPEAKER_06: That's that's such a well-respected group up there.
24:53
SPEAKER_06: Yeah, you know.
24:54
SPEAKER_03: And for such a young guy, I don't know how old he is, but he looks to be maybe under 40.
24:58
SPEAKER_03: Oh, and speaking of that segue.
25:01
SPEAKER_07: Oh my god.
25:02
SPEAKER_07: Just a quick reminder.
25:04
SPEAKER_03: This is the last week to send in nominations for our 40 under 40 presented by Force Marketing.
25:10
SPEAKER_03: If you know a rising dealership leader under 40 who is making an impact in the auto industry, we want to hear about them.
25:16
SPEAKER_03: And of course, if you are under 40 and you're making an impact, you can absolutely nominate yourself.
25:22
SPEAKER_06: Please do that.
25:23
SPEAKER_06: That's right.
25:24
SPEAKER_06: And so it closes Friday.
25:26
SPEAKER_06: Get those nominations in, folks.
25:28
SPEAKER_06: There you go.
25:28
SPEAKER_06: That's right.
25:29
SPEAKER_06: You may be chosen.
25:31
SPEAKER_06: That's right.
25:31
SPEAKER_06: Exactly right.
25:32
SPEAKER_06: So the U.S.
25:33
SPEAKER_06: and Canada trade relationship continues to create uncertainty for the auto industry while a new survey is showing a shift in how consumers are looking at EVs.
25:43
SPEAKER_03: That's right.
25:44
SPEAKER_03: And Forbes.com senior contributor, Ed Garston, has been reporting on both stories, and he joins us live right now to break down what this could mean for the industry.
25:53
SPEAKER_03: Thank you so much for joining us.
25:55
SPEAKER_06: Hey Ed, how are you?
25:57
SPEAKER_06: Great to see you both.
25:58
SPEAKER_06: Yes, good to see you as well.
25:59
SPEAKER_06: Uh, you know, I've been a big fan of it for like years ago.
26:01
SPEAKER_06: You have been.
26:02
SPEAKER_06: Like I've told you before, you did reporting on CNN.
26:04
SPEAKER_06: I used to watch you there all the time.
26:06
SPEAKER_03: He's been following you for a while.
26:07
SPEAKER_06: That's right.
26:08
SPEAKER_06: Keep up the great.
26:09
SPEAKER_06: And by the way, you haven't aged one bit.
26:11
SPEAKER_06: You haven't aged one bit.
26:12
SPEAKER_06: So I don't know if that's a filter you're using, but I gotta get that.
26:15
SPEAKER_06: I gotta get that filter.
26:16
SPEAKER_01: That filter?
26:17
SPEAKER_01: Yeah, well, maybe that's my eyes that are blurry.
26:19
SPEAKER_01: I don't know.
26:20
SPEAKER_06: No.
26:21
SPEAKER_06: Thanks.
26:21
SPEAKER_06: Thanks for joining.
26:22
SPEAKER_03: Oh yes, and thanks for all you do.
26:25
SPEAKER_03: So I would love to start with the U.S.
26:27
SPEAKER_03: Canada trade situation.
26:28
SPEAKER_03: What are you watching most closely right now, and where do you think things stand for the auto industry?
26:34
SPEAKER_01: You know, Bridget, it it it it's really a tough situation because you've got two things at play.
26:41
SPEAKER_01: U.S., Canada, and Mexico still trying to bang out a new trade agreement.
26:46
SPEAKER_01: And in at the same time, you've got this this trade war now going on between the U.S.
26:52
SPEAKER_01: and Canada where they want to go dollar for dollar on tariffs.
26:57
SPEAKER_01: And it it seems, I mean, frankly, it seems like the most nonsensical thing uh that could happen between what have been very close and good trade partners for for it seems like eternity.
27:09
SPEAKER_01: But what's really happened is and and in our story, we talked with uh uh Dee Dee Caldwell, who they they call her the factory whisperer, and she works for this company that helps companies uh locate uh uh their uh facilities their factories around around the world and around the country.
27:27
SPEAKER_01: And what's this uh done is created a huge amount now of uncertainty.
27:33
SPEAKER_01: Like where where do you build a car?
27:35
SPEAKER_01: Where do you build a park?
27:36
SPEAKER_01: Well, that's that's not something you can just decide on the spur of the moment and say, all right, well, next week we're gonna start producing things across the border.
27:45
SPEAKER_01: Uh so the big word now is uncertainty.
27:49
SPEAKER_01: Yeah, and companies don't like uncertainty.
27:52
SPEAKER_01: So what they're doing is it's actually freezing according to Didi, it's freezing investment by the automakers, by part suppliers, not making new investments in new factories and new facilities because they don't know what's gonna happen.
28:10
SPEAKER_01: So they take the path of least resistance, say, you know what, we're just gonna stand pat and not do anything.
28:17
SPEAKER_01: Uh that's not good for anybody.
28:20
SPEAKER_01: Uh and meanwhile, uh you've got labor talks that uh uh two out of three are done between the Canadian uh auto workers, Unifor is the name of the union, uh, and the Detroit three.
28:31
SPEAKER_01: They've settled with GM and Ford, not Stellantis.
28:34
SPEAKER_01: They've broken down with Stillantis because Stellantis now wants to sell uh their plant, and they've actually reached an agreement with the Canadian defense company to sell their huge plant in Brampton, Ontario, near near Toronto.
28:49
SPEAKER_01: So it's thrown the whole industry into disarray uh uh about where to invest, where to build things, uh and in the end it's gonna end up raising prices for the consumer.
29:01
SPEAKER_01: So uh we've got a situation here that doesn't look like it's gonna end anytime soon, and uh it's really not good for anyone, and and no one really is gonna come out uh uh winning in this situation.
29:14
SPEAKER_03: Right, right.
29:14
SPEAKER_03: Now let's shift gears for a minute to the EV survey.
29:17
SPEAKER_03: EV sales have been softer, uh, but the survey shows more than half of U.S.
29:22
SPEAKER_03: drivers say they're more open to buying an EV than they were a year ago.
29:26
SPEAKER_03: What do you make of this disconnect?
29:29
SPEAKER_01: Well, not to be not to be as cynic about it, but this happens every time you've seen gas prices go up.
29:38
SPEAKER_01: You can go back even back to the recession.
29:41
SPEAKER_01: Every time gas prices go up, people go, Well, I guess maybe I should look at an electric vehicle or even a hybrid.
29:49
SPEAKER_01: But they're not really ready uh to pull the trigger.
29:54
SPEAKER_01: Because what does it mean?
29:55
SPEAKER_01: When you buy an EV, sure, you don't have to buy gas anymore, but for a lot of consumers, it's also a huge change in lifestyle.
30:04
SPEAKER_01: Yeah.
30:04
SPEAKER_01: They find out they miss just popping into the corner station and taking five minutes for a fill-up and be on their way when they're on the family road trip.
30:13
SPEAKER_01: Uh you've got to plan a lot more, and it takes more time to uh to uh get some more electrons in your car.
30:21
SPEAKER_01: So they say this all the time.
30:23
SPEAKER_01: This happens every time gas prices go up.
30:27
SPEAKER_01: I'll bet you if take the same survey once things settle down in the Middle East, hopefully sooner than later, and gas prices stabilize and go down, uh the results of the survey will be very, very different.
30:39
SPEAKER_06: Yeah, for sure.
30:40
SPEAKER_06: Um charging still seems to be the big hurdle, right?
30:43
SPEAKER_06: Particularly for people who don't have a a garage or a private driveway.
30:47
SPEAKER_06: How how how are we, you know, solving to that problem in the I mean it you know, obviously when when uh Biden came out and he said, hey, we're gonna put we're gonna spend$500 million on on uh chargers, that never seemed to come to fruition.
31:02
SPEAKER_06: So the country is still very short um from its its target number, right, in terms of charging stations.
31:09
SPEAKER_01: It sure is, Jim, but it's getting better.
31:12
SPEAKER_01: It's getting better.
31:13
SPEAKER_01: Uh there are now more than 13,000 uh charging stations around the country.
31:18
SPEAKER_01: It's getting better slower, yeah, uh slower than optimal.
31:23
SPEAKER_01: It's getting better, and people are recognizing it, but it's still not enough.
31:27
SPEAKER_01: So you have companies like one we we spoke with called ZEAL, that's XEAL, uh, where they install charging stations at places uh where people can uh recharge their vehicles that may not have they don't live in a single family house, they don't have the luxury of a garage and a home charging station, so department complexes, uh workplaces, parks, even recreational.
31:50
SPEAKER_01: Uh so that's making it much more accessible for people.
31:54
SPEAKER_01: And that's uh people are understanding that slowly but surely, but still uh uh even though in the survey it showed that people are recognizing that the charging infrastructure uh has improved, it's still named as one of their top three reasons for resisting going all in on EVs.
32:15
SPEAKER_06: Yeah, yeah, for sure.
32:16
SPEAKER_06: And of course of course, cost is another one.
32:19
SPEAKER_06: I mean, it's perceived as though the EV is gonna cost more money going in, certainly in an ocean of affordability issues out there.
32:27
SPEAKER_06: Um somebody says it's gonna, oh, it's gonna cost more.
32:30
SPEAKER_06: Well, sorry.
32:30
SPEAKER_06: Um even though somebody may run the numbers and find out that, well, you're not paying for all of that gas over the course of a year.
32:38
SPEAKER_06: So if you took that and applied it towards the little bit higher payment that you're paying for an EV, uh, it could come out either break-even or maybe you're even ahead, depending on the car that you choose, right?
32:48
SPEAKER_01: It's true, and and here's the good news uh new numbers from Kelly Blue Book uh show that uh the price, the transaction price for EVs is now at about 54.8, and that's down 2.7 percent.
33:04
SPEAKER_01: So the premium of EVs over internal combustion vehicles, I'm just checking my notes so I get the number right, uh, has uh gone down.
33:14
SPEAKER_01: Uh so it's about 9.4% uh premium above internal combustion vehicles, uh, which is down two point seven percent from a year ago.
33:23
SPEAKER_01: So it's going in the right direction.
33:26
SPEAKER_01: So uh, you know, the uh the affordability at some point there's gonna be exact parity uh once volume uh increases that the automakers are putting out more, uh and then so folks won't have that one obstacle in front of them.
33:40
SPEAKER_01: Yeah, for sure.
33:41
SPEAKER_03: So when you put these two stories together, the trade uncertainty on one side and changing consumer attitudes towards EVs on the other, what do you think the auto industry needs to be pay to what should we be paying attention to the closest right now?
33:56
SPEAKER_01: It's still, Bridget, it's still affordability.
33:59
SPEAKER_01: Affordability is the biggest obstacle to ownership uh of a new vehicle.
34:05
SPEAKER_01: And actually, for that matter, used vehicles, uh, the prices are still uh pretty high for even uh used vehicles.
34:12
SPEAKER_01: Automakers have to find a way to make vehicles accessible to more people.
34:18
SPEAKER_01: Sure, they're selling a ton of these super expensive full-size pickup trucks, and it's where they make the profits and why not.
34:26
SPEAKER_01: Uh but there's still not enough uh vehicles that you would call affordable.
34:32
SPEAKER_01: And uh one of the other numbers from Kelly Blue Book is that uh the supply of vehicles that are thirty thousand dollars or less is down to only about a 52-day supply, which which isn't an awful lot.
34:46
SPEAKER_01: Uh so I think that's that's what they really need to think about is making their vehicles more accessible uh to a larger swath of people uh while, of course, still trying to maintain the profitability that they need to remain in business.
35:02
SPEAKER_06: Yeah, that's right.
35:04
SPEAKER_06: Yeah, don't there's no question about it.
35:05
SPEAKER_06: It's gonna be interesting to watch all of this unfold as as we close out the year.
35:10
SPEAKER_06: Um how are you feeling about, you know, we we do a lot of stories.
35:13
SPEAKER_06: In fact, we just did one about uh Chinese vehicles.
35:16
SPEAKER_06: And uh now with the president's comments, uh, I think it was on Friday, you know, with Laura Ingram from Fox News, where he said, hey, if they want to build a factory here, I'm open to it.
35:25
SPEAKER_06: I think that put a lot of people, you know, into motion there.
35:28
SPEAKER_06: It was like, wait a minute, you guys were you guys had uh Senator Bernie Marino and Senator Slotkin put a bill together and got unanimous uh uh you know consent on it uh or at or at the early stages to say, look, we're gonna ban uh all Chinese vehicles from the U.S.
35:44
SPEAKER_06: And here's the president coming out going, well, you know, listen, if they want to uh employ American people here on American soil, then maybe it's not a terrible thing.
35:52
SPEAKER_06: So what's your take on on uh Chinese vehicles?
35:57
SPEAKER_01: You know, Jim, I'm old enough to remember when I heard that same argument uh about uh Toyota on uh wanting to build uh wanting to build plants.
36:07
SPEAKER_01: No, no, the Japanese in here, you know, it's gonna kill the industry.
36:10
SPEAKER_01: That's right.
36:11
SPEAKER_01: Um look, um in a sense, the Chinese are already here.
36:16
SPEAKER_01: Yeah.
36:16
SPEAKER_01: Uh their stuff is in our vehicles, whether you like it or not.
36:20
SPEAKER_01: Uh electronic parts, components, uh, we're already doing business with them.
36:24
SPEAKER_01: Right.
36:25
SPEAKER_01: I think you have to be realistic about it.
36:28
SPEAKER_01: Uh I think that if you're going to allow them to build uh in this country, uh then perhaps the uh there needs to be certain rules uh uh installed.
36:40
SPEAKER_01: But um I I'm I'm just looking at it as an in out of inevitability.
36:46
SPEAKER_01: Yeah.
36:46
SPEAKER_01: You know, I think we all are.
36:49
SPEAKER_01: You learn from history.
36:50
SPEAKER_01: Yeah.
36:50
SPEAKER_01: And uh look look how many more Americans are employed uh by the Toyotas and Nissan's Mercedes and BMW.
36:58
SPEAKER_01: Thousands and thousands.
37:00
SPEAKER_01: Uh so uh uh I guess I uh leave it without getting too political, is that I think it's sort of a Pollyanna look to say uh to to keep them out forever.
37:11
SPEAKER_06: That's right.
37:11
SPEAKER_06: That's right.
37:12
SPEAKER_06: That's right.
37:13
SPEAKER_06: Wow.
37:13
SPEAKER_06: Yes.
37:13
SPEAKER_06: Yeah, we've got a comment actually.
37:15
SPEAKER_06: Do you think affordable used EVs could bring more consumers into the market faster than new models will?
37:22
SPEAKER_01: Uh uh Yeah, I think so.
37:25
SPEAKER_01: I think it'll certainly raise consideration.
37:27
SPEAKER_01: You know, when uh uh the Chevy Bolt was uh was a tr a wonderful vehicle, a very affordable vehicle, and it was selling pretty good.
37:36
SPEAKER_01: Um and then GM made some decisions about them, which is a little bit of a head scratcher.
37:43
SPEAKER_01: But um yeah, I think if if you make something affordable, then people start having a little bit of a personal balance sheet and saying, uh well, maybe my lifestyle does have to change, but uh at least it's something I can swing.
37:56
SPEAKER_01: Yeah, and and I would at least consider it.
37:59
SPEAKER_01: So I think, yeah, I think that would make a huge difference.
38:01
SPEAKER_06: Yeah, I do too.
38:02
SPEAKER_06: I do too, for sure.
38:04
SPEAKER_06: I can always count on Ed Garston for the for the good stuff.
38:06
SPEAKER_03: Great, you know, great interview.
38:07
SPEAKER_03: Thank you so much for your comments and your time with us today.
38:10
SPEAKER_03: We really appreciate it.
38:11
SPEAKER_01: Yes, thanks so much.
38:12
SPEAKER_01: Appreciate being here.
38:13
SPEAKER_01: It's wonderful to talk to you.
38:14
SPEAKER_01: Thanks a lot.
38:15
SPEAKER_01: You as well.
38:17
SPEAKER_06: Yes, great guy.
38:18
SPEAKER_03: Yes, great guy.
38:19
SPEAKER_03: He knows the car business.
38:20
SPEAKER_06: He's been he's been following him for a long time.
38:21
SPEAKER_06: I know, yeah, no question.
38:22
SPEAKER_06: But that's why when we got back together, it was like, wow, oh my gosh.
38:27
SPEAKER_06: I've been uh a fan from afar watching you on TV and CNN, and he always he always always nailed it.
38:34
SPEAKER_03: So yeah, but he had some some good comments about the um the Chinese situation.
38:39
SPEAKER_06: Yes, we do.
38:40
SPEAKER_06: Um this is a kind of a a humorous social clip that we want to play.
38:44
SPEAKER_06: Okay, because you know how much we love funny social clips, right?
38:47
SPEAKER_03: We'd love that.
38:48
SPEAKER_03: Do we have the audio on this one?
38:51
SPEAKER_03: Okay, cool.
38:52
SPEAKER_06: Let's let's check it out.
38:53
SPEAKER_06: Let's check it out.
38:54
SPEAKER_04: Hey, uh, do you work here?
38:56
SPEAKER_04: Yes, I do.
38:57
SPEAKER_04: And thank you for asking that question.
38:59
SPEAKER_04: Welcome to BMW of Marietta, Car Enthusiast.
39:04
SPEAKER_04: Whether you're looking for a sporty sedan or a luxurious SUV, we have every vehicle to meet your family's needs.
39:12
SPEAKER_04: Family?
39:13
SPEAKER_04: I was just wondering if I should go to the M3 or M4.
39:16
SPEAKER_04: First of all, I love that for you.
39:18
SPEAKER_04: Both the BMW M3 and M4 offer great performance, premium features, and unmistakable BMW identity.
39:26
SPEAKER_04: Right, but which one should I go with?
39:29
SPEAKER_04: Ultimately, the best choice is the vehicle that aligns with your needs and preferences.
39:34
SPEAKER_04: Dude, are you not gonna help me?
39:36
SPEAKER_04: I understand.
39:36
SPEAKER_04: Buying a car can be extremely frustrating.
39:39
SPEAKER_04: Would you like me to pull up a side-by-side comparison chart?
39:42
SPEAKER_04: Whatever, man.
39:44
SPEAKER_04: Uh I'd be happy to adjust my response.
39:47
SPEAKER_04: Would you prefer professional, persuasive, or casual?
39:50
SPEAKER_04: Oh my god, isn't that great?
39:52
SPEAKER_06: I love it.
39:52
SPEAKER_06: Is that what it's gonna come to?
39:53
SPEAKER_06: I love it.
39:54
SPEAKER_06: Is that what it's gonna come to?
39:55
SPEAKER_06: That's scary.
39:56
SPEAKER_06: Oh my gosh, that's that is too much.
39:58
SPEAKER_03: Did he say Marietta?
39:59
SPEAKER_03: He's right down the street.
40:00
SPEAKER_06: I know, Marietta, right right here.
40:02
SPEAKER_06: Oh, Marietta somewhere.
40:03
SPEAKER_06: Okay.
40:04
SPEAKER_06: Yeah, we were just told mur Marietta.
40:06
SPEAKER_06: Okay.
40:06
SPEAKER_06: Thank you.
40:06
SPEAKER_06: Thanks for correcting me.
40:08
SPEAKER_06: Thank you.
40:08
SPEAKER_06: Thank you, control room.
40:09
SPEAKER_06: Thank you, Mary.
40:11
SPEAKER_06: That's gonna, you know, that's funny because uh you know, every consumer comes in now and they've been on chat or they've checked it out.
40:18
SPEAKER_06: Which car should I buy?
40:19
SPEAKER_06: What's the best one?
40:20
SPEAKER_06: What should I compare it to?
40:21
SPEAKER_06: Yes.
40:22
SPEAKER_06: And I think it's important really that can that um today's salespeople um get as familiar as they can with with chat and with AI to see what their consumers are going through, don't you?
40:33
SPEAKER_03: I do very much so.
40:34
SPEAKER_03: And the way he was talking that the chat language was really someone that didn't have a lot of experience with chat.
40:41
SPEAKER_03: The way he I think if you really uh have that um the the prompts correct.
40:47
SPEAKER_03: And the real I was gonna say relationship, but it sounded weird, but if you're prompting correctly and you're working with it and you're training it, it it will learn to to understand what you want and a lot better than than that.
40:58
SPEAKER_03: But that was really funny.
40:59
SPEAKER_06: Yeah, you use it all the time.
41:00
SPEAKER_06: I do too.
41:01
SPEAKER_06: It's it's is we go to it for everything.
41:02
SPEAKER_06: I mean to help us uh decide you know the best travel or the best rates or the but whatever it is or chat and get to get their take.
41:11
SPEAKER_06: It really is.
41:11
SPEAKER_06: There's no it's exciting times.
41:13
SPEAKER_06: There's no question about it.
41:15
SPEAKER_03: Yeah.
41:15
SPEAKER_06: So my my comments today is you want to increase for salespeople that are listening and managers that are listening, if you and I know this is gonna be a huge duh.
41:24
SPEAKER_06: Are you ready for it?
41:25
SPEAKER_03: Ready.
41:25
SPEAKER_06: You want to increase your closing percentage?
41:28
SPEAKER_06: Um, get everybody on a test drive.
41:31
SPEAKER_06: Isn't that funny that that's so I know, isn't that earth-shattering?
41:34
SPEAKER_06: It is.
41:35
SPEAKER_06: No, but there are still salespeople that will not take everybody on a test drive, okay?
41:43
SPEAKER_06: And it it it just it's crazy because if you want to sell vehicles to do.
41:47
SPEAKER_03: So you're saying the customer comes in.
41:48
SPEAKER_06: The customer comes in and they don't go on a test drive.
41:50
SPEAKER_06: And they don't go on a test drive.
41:51
SPEAKER_06: They go right to they listen to the cell, they listen to the customer a little too much in this case and go, oh no, I've already driven the car, or I already own one, or my friend had one.
42:00
SPEAKER_06: I don't need to do that.
42:00
SPEAKER_06: I really want to get your best price, I want to get the payments, I want, I don't want to spend a lot of time here.
42:05
SPEAKER_06: I just, if you can just help me, I just want to get the best price.
42:07
SPEAKER_03: So what do you say to them if they say, oh no, I I already have have one, and this is just my second one I'm getting.
42:12
SPEAKER_03: That's a great one.
42:12
SPEAKER_06: That's a great question.
42:13
SPEAKER_06: That's a great question.
42:14
SPEAKER_06: So because typically what they're there for is to get that, is to get that payment or to get that best price or to get their trade, uh, whatever the case might be, which is okay, because you can say to the customer, uh, Mr.
42:25
SPEAKER_06: or Mrs.
42:26
SPEAKER_06: Jones, okay, that sounds great.
42:28
SPEAKER_06: We'll get you all the information that you need to make an informed decision.
42:31
SPEAKER_06: And then when you touch the desk or you get with your manager to say, hey, let me just let you know right up front, this customer has not driven this car yet, okay, that you're about to give me a price on, or that you're about to give me information on.
42:42
SPEAKER_06: Of course, the sales manager is gonna say, You got to take a demo drive, okay?
42:46
SPEAKER_06: So the easiest way to do that, which I found, was to say, go back out to the customer and say to them, look, we're working, my manager's working on the numbers right now, okay?
42:54
SPEAKER_06: But uh what we would like to do is to uh I brought the car up here already for you.
42:59
SPEAKER_06: Let's go ahead and take a test drive.
43:01
SPEAKER_06: I know you know that you've driven it before and everything else, but it's our policy here that everybody's got to drive the car because we want to make sure it's the right car for you before we give you the numbers because you might buy a car that doesn't fit your needs.
43:13
SPEAKER_06: So just humor me if you have to, but let's go for a quick drive around the block while they're working on the numbers.
43:19
SPEAKER_06: So we're doing two things at one time.
43:21
SPEAKER_06: I don't know that that works for everybody, but it worked for me.
43:24
SPEAKER_06: And uh, but at the same time, if salespeople, if you're listening, if you go to your desk manager and you get numbers and you didn't tell them that you didn't drive the customer on a demo drive, man, I'm telling you, I you gotta tell the manager that because otherwise that manager is gonna be working up numbers and shaving off thousands of dollars and adding to the trade allows and everything else, and the custom and they didn't know the customer didn't drive the car.
43:51
SPEAKER_06: And then only to find out later on when the customer goes, Okay, we're getting real close.
43:55
SPEAKER_06: Do you think I can drive the car?
43:56
SPEAKER_06: And you just want to kill the salesman because it's like you didn't drive them in the car.
44:00
SPEAKER_06: Happens all the time.
44:02
SPEAKER_06: Happens all the time.
44:04
SPEAKER_06: More test drives equal more sales, period.
44:07
SPEAKER_06: I don't care whether it's 1985 or 19 or 2026.
44:14
SPEAKER_06: That's what it means.
44:15
SPEAKER_03: Good advice, Jim.
44:16
SPEAKER_03: So very nice.
44:17
SPEAKER_06: Yes.
44:18
SPEAKER_03: So, for those of you that are not signed up to our newsletter, do so.
44:21
SPEAKER_03: You'll be able to stay up to date on all of the great content that we have here at CBT News.
44:25
SPEAKER_03: You won't miss a live show or any of the great interviews that we have every day.
44:31
SPEAKER_06: Even tips on how to get more demo drives.
44:33
SPEAKER_06: And tips.
44:33
SPEAKER_06: Which would be in there.
44:34
unknown: That's right.
44:35
unknown: That's right.
44:35
SPEAKER_06: New for more great traders like Jonathan Dawson and Adam Marberger and so many others.
44:41
SPEAKER_03: So this has been a great show.
44:43
SPEAKER_03: We really appreciate you being with us today, and we look forward to seeing you back here again tomorrow at noon Eastern time.
44:48
SPEAKER_03: That's right.