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Episode #1254: GM takes a multibillion-dollar EV hit but says 2026 looks brighter, white-hat hackers cash in by cracking EV chargers and infotainment systems, and the airline industry gets its annual report card

• General Motors closed 2025 with a wider quarterly loss after taking billions in EV and China-related charges. But underneath the headline number, core profits held up, cash flowed in North America, and GM is signaling confidence that 2026 will be stronger.
  • GM reported a $3.3B Q4 net loss after booking more than $7B in charges, largely tied to cutting back EV production and restructuring its China joint venture.
  • Adjusted EBIT rose 13% in the quarter, and GM earned $10.5B in North America for the year, resulting in profit-sharing bonuses up to $10,500 for UAW workers.
  • EV losses are projected to improve by $1B–$1.5B in 2026
  • CEO Mary Barra told shareholders the company sees stability ahead: “We expect the U.S. new vehicle market will continue to be resilient… 2026 should be an even better year for GM.”

• From EV chargers to infotainment systems, the Pwn2Own Automotive 2025 competition exposed how much of the industry is still very hackable.
  • Hackers earned $886,250 uncovering nearly 50 zero-day vulnerabilities in EV chargers, infotainment systems, and automotive software
  • Infotainment systems from Kenwood, Sony, and Alpine were successfully exploited, along with chargers from ChargePoint, Autel, Ubiquiti, Phoenix Contact, WolfBox, and Tesla.
  • Tesla Wall Connectors alone accounted for more than $140,000 in payouts, while the overall winning team, Summoning Team, took home $222,250.
  • Notably, no one attempted to hack a Tesla vehicle, despite a car and large cash prizes on the table.
• If 2025 felt like a rough year to fly, you’re not wrong. But turbulence hit everyone. What separated airlines wasn’t the chaos—it was execution. The Wall Street Journal’s airline scorecard crowns a new winner and reshuffles the pecking order.
  • (Worst → Best): Frontier (T-last), American (T-last), JetBlue (7th), United (6th), Spirit (5th), Alaska (4th), Delta (3rd), Allegiant (2nd), Southwest (1st).
  • Southwest wins for the first time since 2020, ending Delta’s four-year streak with strong all-around operations and industry-low complaints.
  • Explaining Southwest’s edge, COO Andrew Watterson said the airline avoids the “easy” option when things go sideways: “It’s very easy to cancel a flight. That’s the path of least resistance.”

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Episode #1253: Today we’re digging into why fixed ops is carrying the dealership profit load, how dealer-focused AI just landed serious funding, and why Ford teaming up with Carhartt is about a lot more than merch.

• With new-car sales slowing, aging vehicles and a technician shortage are putting service departments squarely in the profit hot seat. Dealers are leaning into mobile service, tech, and creative staffing strategies to protect margins and make every service lane interaction count.
  • Service departments drive 85–90% of revenue for many dealers
  • Vehicle age hit 12.8 years in 2025, boosting service demand
• Mobile service is gaining traction despite $100K startup costs, while AI and video tools improve efficiency—but dealers must balance tech with personal service.
• “There is not a department in any dealership in America more important than the service department,” said Tom McCollum, chairman of the Audi National Dealer Council.

• As dealerships increasingly lean on conversational AI to handle customer communication at scale, book more appointments, and squeeze more revenue out of every lead, Mia Labs has raised a hefty Series A round.
  • Mia Labs raised $20 million, bringing total capital raised to $29 million
  • The platform now serves 350+ franchise dealerships and enabled more than $45 million in dealer revenue in 2025 alone.
  • Mia’s AI has powered over 1 million customer conversations, booked 130,000+ sales and service appointments, and saved 1.5 million human-hours.
  • The company has new product launches teased for NADA 2026, with CEO and co-founder Brian Hoang saying “We’re building the most sophisticated AI super employee in the automotive space,”
• Ford is teaming up with Carhartt in a multiyear partnership that blends brand, philanthropy, and workforce development. The goal: get more people into skilled trades, support technicians, and celebrate the work ethic that keeps dealerships, trucks, and communities moving.
  • The partnership includes co-branded gear, uniforms for technician trainees, and a Carhartt edition 2027 Ford Super Duty with design cues inspired by real job-site textures.
  • Ford, Carhartt, and partners are backing technician training through scholarships, tools, and support programs aimed at lowering barriers to skilled trades careers.
  • “This is such a great match because we’re all committed to making sure workers have the best equipment and gear that they can get,” said Ford CEO Jim Farley.

• This episode of the Automotive State of the Union is brought to you by Amazon Autos: Meet customer

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These three dealers used to work together, and now they are teaming up to make a real difference.

Charlesglen Toyota, 5th Avenue Volkswagen, and Lexus of Royal Oak worked with their teams to raise $265,000 for local charities, matching employee donations and backing causes close to home: mental health support, autism services, and animal rescue.

Read the full story here: https://daily.asotu.com/p/canada-opens-the-door-to-china-evs

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Episode #1251: Today’s show comes to you from Washington, DC as Public Policy Day wraps and the auto industry’s biggest themes take center stage.

Autonomy is no longer theoretical — Tesla has begun limited robotaxi rides in Austin with no safety driver onboard, marking a meaningful inflection point for self-driving technology and accelerating conversations dealers can no longer ignore.

Plus we dig into liability, ownership, and what happens when cars start driving themselves for profit, while affordability remains the constant drumbeat across every conversation. Despite rising averages, there are still real, attainable vehicles on dealer lots — proving once again that payments and rates matter more than headlines.

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Episode #1250: Colorado dealers filed suit on VW-backed Scout’s direct-sales license, insurers face political heat as profits soar and affordability cracks, and Lemonade rolls out Tesla Full Self-Driving-based insurance, hinting at a future where driving software sets the rate.

A group of Colorado VW, Audi, and Porsche dealers is suing the state after regulators approved a direct-sales dealer license for Scout Motors. Dealers argue the decision misreads state law and opens the door for OEMs to bypass franchised networks.

• • Ten VW, Audi, and Porsche dealers filed suit this week, alleging Colorado improperly granted Scout a dealer license by treating it as an EV-only manufacturer.
  • Dealers argue Scout’s extended-range EV system is effectively a plug-in hybrid, disqualifying it from EV-only exceptions in state law.
  • The lawsuit also claims Scout is an “alter ego” of Volkswagen Group, which already has franchised dealers and is barred from direct sales

The affordability conversation is turning its sights on insurers. After years of sharp rate hikes, home and auto insurers are posting near-record profits—and lawmakers are taking notice.

• Insurers are rebounding strongly, with the property and casualty industry posting its highest underwriting profit in nearly 20 years.
• Lawmakers in states like New York and Oklahoma are pushing profit caps, arguing rate hikes are out of step with household budgets.
• Auto insurance rates have stabilized nationally, but remain uneven by state, fueling continued consumer frustration.
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• Lemonade is launching a new auto-insurance product built specifically for Tesla Full Self-Driving users, promising per-mile rates up to 50% lower when the software is engaged—an early glimpse at how insurance may evolve alongside partial autonomy.
  • Lemonade will price insurance based on when Tesla’s Supervised Full Self-Driving system is active versus human driving.
  • The product relies on new vehicle telemetry data enabled through a technical collaboration with Tesla.
  • Launch begins in Arizona on January 26, with Oregon following a month later.
  • The move signals insurers are preparing for a future where software performance, not just driver behavior, sets risk and price.
  • Lemonade president Shai Wininger said, “A driver who can see 360 degrees, never gets drowsy, and reacts in milliseconds isn’t like any other driver.”

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Episode #1249: We dig into why affordability—not EV tech—is the real sales bottleneck heading into 2026, how agentic shopping is reshaping the idea of ‘merit’ across retail, and why Jeff Daniels’ new stage play about a struggling dealership is hitting close to home for the auto industry.

• In a wide-ranging interview with Automotive News, Chevrolet dealer council leader Andy Guelcher explains why affordability—not EV tech—is the industry’s biggest hurdle heading into 2026, and how pricing discipline, incentives, and used EVs will ultimately determine sales momentum.
  • Guelcher warns that $1,000-plus monthly payments are unsustainable and, if not addressed, will put real pressure on future vehicle sales.
  • Lower inventory levels have helped dealers protect gross, but affordability now requires more creativity in financing, leasing, and lender mix.
  • From a Chevy standpoint, Guelcher says disciplined inventory management and a renewed focus on lower-MSRP models position the brand well if affordability improves.

• Hollywood meets the showroom as actor Jeff Daniels brings car dealer drama to the stage. A new play written by a former Automotive News editor puts a struggling dealership — and the people who love the business — front and center, minus the tired stereotypes.
  • The Classic King follows four salespeople racing to save a dealership after losing its new-car franchise, which was inspired by real dealership closures during the Great Recession
  • The play is written by former Automotive News editor Richard Johnson and directed by Jeff Daniels at Michigan’s Purple Rose Theatre.
  • Daniels praised the script, saying, “There’s a lot of heart in it and a lot of humor… it speaks to people who don’t just have a job — they love what they do.”

• AI is officially coming for the shopping cart. Shopify president Harley Finkelstein says “agentic commerce” could fundamentally change how consumers discover and buy products—shifting power away from ads and toward relevance, fit, and merit
  • Shopify is betting big on agentic commerce, citing a 14x increase in orders driven by AI agents in just the past year.
  • Google’s new Universal Commerce Protocol (UCP), backed by Shopify, Walmart, and others, aims to standardize how AI agents shop across brands.
  • Rather than replacing e-commerce sites, agentic shopping is expected to act as a powerful new “spoke,” potentially accelerating overall e-commerce adoption.

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Episode #1248: Dealer confidence takes a hit as affordability pressures and tighter margins creep into Q4, even as fixed ops and F&I try to hold the line. Meanwhile, Wawa goes all-in on Tesla charging, and the Vegas Sphere model heads to DC.

Show Notes with links:

• Dealer sentiment isn’t what it was in Q3 as affordability pressures, rising rates, and tighter margins took their toll on the Q4 numbers. While conditions remain technically “favorable,” confidence slipped quarter over quarter, with dealers signaling tougher days ahead despite strength in fixed ops and F&I.
  • Dealers rated current performance at 62.3, down 5 points from Q3 and the lowest of any industry segment, citing consumer affordability as the biggest drag.
  • Rising interest rates and payment-driven shoppers are shrinking showroom traffic and compressing grosses as price transparency intensifies competition.
  • Fixed ops and F&I remain bright spots, though confidence there also dipped compared to Q3 as financing conditions worsened.
  • Used-vehicle operations grew more challenging, with quality—not quantity—becoming the main inventory issue after years of tight supply.

• Wawa is slapping its logo on Tesla Superchargers. The popular convenience store giant has launched its first self-branded Tesla Supercharger site, signaling a deeper push into EV infrastructure.
  • The first Wawa-owned, Wawa-branded Supercharger site is now live in Alachua, Florida, featuring 16 ultra-fast 325 kW stalls.
  • The site operates under Tesla’s new Supercharger for Business program, where Tesla installs and manages chargers while Wawa controls pricing.
  • Charging is set at $0.37 per kWh, and Wawa hasn’t disclosed how many more branded sites are planned—but its 1,200+ stores offer big expansion potential.

• The Vegas Sphere is coming to a Nations Capital near you. Sphere Entertainment plans a 6,000-seat “mini-Sphere” in National Harbor, Maryland, bringing its eye-popping screens and immersive tech to the DC area, along with a billion-dollar price tag and big economic promises.
  • The DC-area Sphere will be about one-third the size of Las Vegas, but feature the same massive screen, immersive audio, 4D effects, and haptic seating.
  • Construction is expected to cost over $1 billion, supported by roughly $200 million in state, local, and private incentives—some requiring voter approval.

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Episode #1247: Canada slashes EV tariffs in a controversial China deal, OpenAI kicks off its ad-supported ChatGPT Go plan, and Recurrent CEO Scott Case calls out the real EV story: a booming used market dealers can’t afford to miss.

Show Notes with links:

• In a surprise move, Canada struck a deal with China to allow 49,000 Chinese-made EVs into the country annually at a dramatically lower tariff—down from 106% to just 6.1%—in exchange for agricultural trade concessions. The move has stirred both optimism and outrage across the automotive industry.
  • The deal drew sharp criticism from Unifor and industry leaders, who say it rewards unfair labor practices.
  • Critics say it could hurt Canadian auto jobs and complicate USMCA negotiations with the U.S.
  • One of the qualifications is that the vehicles be priced around $30k CAD (25K USD)
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• Don’t call it a slow down says , Scott Case, CEO of Recurrent in is Automotive News Op Ed. Despite media headlines suggesting electric vehicle demand is cooling, Case says the narrative is missing the real story and it is that used EVs are booming as he urges dealers to ignore short-term noise and prepare for a long-term shift.
  • Case argues that demand isn’t falling, it’s shifting to lower-cost used EVs as new prices soar.
  • The used EV market is set to grow 5x, driven by a wave of off-lease EVs hitting the market in 2026.
  • “Winning in the EV market means selling $30K vehicles with 300-mile range and Tesla charging access. In 2026, that means used EVs.” —Scott Case, Recurrent CEO

• OpenAI just opened the ad door inside ChatGPT as it launches its lowest-cost plan worldwide. That’s right, ads are coming to the AI assistant for free and Go users in the U.S., marking a major monetization pivot ahead of a planned IPO.
  • ChatGPT Go is now available globally at $8/month and includes GPT‑5.2 Instant access.
  • Ads will appear as “Sponsored Recommendations” under responses for Go and free users.
  • Sam Altman once called ads a “last resort,” but now says he’s okay with them “if it doesn’t violate user trust.”
• “Ads support our commitment to making AI accessible… by helping us keep ChatGPT available at free and affordable price points.” —OpenAI blog

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