Auto Repairs About To Increase, EV Ranges By Month, What The Public Really Thinks About AI

Kyle Mountsier  0:00  
All right. Good morning. Paul did some remodeling on his background right there. It's Wednesday, April 9. This is the automotive State of the Union. I'm Kyle Mountsier With co host Paul Daly, and we're talking about stuff here I go, auto repairs. EV ranges, when they see me, and what the public really thinks about AI? What do they really think about AI? What does the public think the what? Let us ask this question, what is quote, unquote the public? What does that even mean? Right? Because everyone's like, yeah, the public over there. I know I'm not a part of that, but

Paul J Daly  0:33  
it starts with people that don't listen to this show. Is the first group? Yeah, I think it's public, people that generally don't watch that kind of news or content, right? Yep, that's right. It's just whoever's not paying attention to this article right now is the public, the uninformed public, the uninformed public, I don't know well right now, you and I get so excited when we get to be in in stores and you're going to join me here in a little bit and just, man, always when I'm around beaver Toyota and coming Georgia, like you and I come here, usually about once a month, and I was just kicking it with a couple sales people. And they had an insane month last month. And then it was spring break here, so they had a little bit of a slower weekend. But then Monday, the the flood gates opened again. Oh, I'm sure. And I was asking, were people talking about tariffs and all this? And he's like, you know, he's like, we, we're not, we're not really even going to play that game. We're just doing business the way we've always done the business. And that comes right from Patrick a bad right? We didn't do it during COVID. A lot of dealerships are like, bumping and starting to do stuff. It's like, we don't play that game. We never have. And it's hard to argue with one of the best performing Twitter look

Kyle Mountsier  1:39  
when when you say we don't play that game, it means you're playing a game all out on your own. That's right.

Paul J Daly  1:44  
That's exactly what you're building your own game. It's like Jesse Cole will gadera and just playing in their own field play. We're playing this game. And the nice part about this game, in air quotes, is that you don't have to change it, no matter whatever's going on. No, right? That's right. Consistency part of it look, one of the things that we're talking about a ton is getting together with other people who are are solving problems, are figuring out how to do business in a way that's consistent and steady and successful. All those people are going to be gathering at a soda con in just a little over a month from now. It's coming in. Hannah Hanover, Maryland, topics including AI, compliance culture, fixed ups, global industry dynamics, obviously, leadership, marketing, multi rooftop and group conversations, lots of lots of tech, a lot more, including pitch tank. We talked about this yesterday, and this is kind of your baby.

Kyle Mountsier  2:36  
I'm really excited about pitch tank this year. The the the the submissions are flowing in, so you've only got three days left to submit, plus it's about to be closed. That's it. Three days left. Once that's closed, whoever gets in, they're going to go through the judging cycle, and we'll get the top nine to the event. So make sure that if you want to be a part of the pitch tank, ASOTU CON com, forward slash pitch tank, and you can do that, and myself and some friends will be judge. And, yeah,

Paul J Daly  3:04  
oh my, some friends, he says, some friends, some friends. Greenfield, Bill Carr as Chase Frazier, you know, just a couple of noobs.

Kyle Mountsier  3:14  
Put noobs got him. Hey, ticket prices increase. Uh, Sunday, so don't, don't miss out on the what on

Paul J Daly  3:21  
the better reason, if you're dancing around it like just finish the dance by the ticket and let's get going. Let's talk about some news. Let's talk fixed stops. A lot of fixed stop stuff recently, I think it's a great place to be focusing right now, and a lot of dealers are but auto repair bills are on the verge of a sharp climb, and the clock is ticking as a 25% tariff on imported vehicles and auto parts, recently enacted by President Trump, officially takes effect may 3, and it could add hundreds to even routine repair jobs. Roughly 44% of OEM parts are imported, many from Taiwan and other countries not exempt under usmca, according to Cox, automotive experts saying a standard break job could jump 150 to $200 axle as it parts, as parts hit with tariffs, they filter through the supply chain. Many shops have just four to six weeks of parts inventory and dealerships like La Fontaine auto or proactively contacting customers who previously declined service. This is really clever to lock in prices. So May 3 deadline, yep, insurance premiums could go up as well. And here is Skyler Chadwick, Director of Product Consulting at Cox automotive, says, go get it done today, because we could be having some different conversations in a couple of weeks. So I

Kyle Mountsier  4:36  
have a good buddy. I've talked to him about him before. He is an, I just lost the word, but he's with Geico. He does claims adjustment, right? Just adjuster. He's an adjuster. And they are like, hot on the trail of this right now, trying to chase down, getting everything done in the in in certain timelines pull forward. Yeah, because, like, if, for some reason, they can't get the parts at the prices, and they're trying to, like, manage whether the availability the adjustments will change over the next 60 to 90 days, because there's already part supply issues with some manufacturers that they're having to deal with. So this is a great shout. I love what La Fontaine is doing, going back to decline services over the last three to four months, because by the time that person may be ready to come back in and spend that money, it may be a little too late.

Paul J Daly  5:29  
Yeah. So, I mean, that's a great way to push forward business, obviously, but also a great customer experience, like, you know, cheap insurance, as Jim cook would say against that, because the customer comes back in for something. You quoted them 150 200 300 $400 less, just 90 days ago, they're not going to be happy. They're going to be thinking that you're probably jerking them around. So it's a way ensure against that. Another dynamic I just thought of as you were talking about that I spent, you know, the better part of 15 years in the collision side of the business with my first company, RIM, doctor and image auto. I'm thinking about, like, everybody's people win, people lose. And if parts are going to be 20, 30% more expensive, it's literally going to be like, a little bit of a windfall for collision centers who mark up parts based on a percentage. And I wonder how that's going to get affected. Yeah, right. I wonder how they're going to like, yeah. So like, lock markup margins in. That's that's going to be what I'm going to I'm going to ask Patrick a bad about that, because he meant he's general managers collision center here too. Yep, yeah.

Kyle Mountsier  6:30  
I will say, I think. And because manufacturers are So paying attention to right now, you're seeing a bunch of them saying, like, Hey, we're locking prices. We're not going to move prices for the next 90 days. We're going to see how this all shakes out. They've are like manufacturers have already come out and said that on new vehicle sales, what's not going to happen is they're not going to let up on on the low price sales. And we're going to see these, these body shops, service lanes, things like that, be impacted probably more quickly than people will be on the sales side, so being program proactive about that communication is super high importance right

Paul J Daly  7:05  
now. Speaking about being proactive, this one's close to my heart. If you're planning a road trip in an electric vehicle, do it in July or August. The new report from Vasia ex weather shows that those are the best months for EV range across the US, with average distances peaking at 267 miles from June to September this year, our last year, 2024 average EV range top to 250 miles in all 48 states. In contrast, January 2025 saw the state fall below the 250 mile median with North Dakota, no surprise, with an average of 171

Speaker 1  7:48  
miles, which is basically the distance from your house the post office, factors like air density, cabin heating, wind and snow contribute to winter range dips. And here's a quote from x weathers less Lu mile snow is worse for rolling resistance than water. It remains on the surface for longer, for a longer time. I never even thought of that. Yeah, so just like snow on the surface, no resistance in, in, you know, just keeping maintaining speed, it's, it's interesting. Like, you just haven't seen this type of study come out with, you know, gas powered vehicles in their particular range. I wonder if there is some variance in, like, hot weather. Oh, that does it evaporate things, you know, like, I don't think we see that as much, but it is still funny to see like, oh, you know, these are the good states. These are the good times to travel in these in these cars. Other than that, it's not gonna be so great. I don't know what else to say

Paul J Daly  8:44  
about funny part about this, that he's like, I don't think anyone's making their decision, you know what? Yeah, if we were gonna go in August, but we better do July,

Kyle Mountsier  8:52  
I know right? Well, if you're gonna rent one, you know, you want to see what it's like, maybe that's when you do it. I honestly think you're not gonna notice that? Yeah, speaking of not noticing,

most of the world doesn't even notice that AI exists, a sweeping new Pew survey highlights a major disconnect between quote, AI experts and the general public, while most experts see AI as a personal and societal benefit, the average American is more worried than excited, and trust is in short supply. 76% of AI experts believe that AI will benefit them personally, while just 24% of the public feels the same. Only 11% of Americans are more excited than concerned about daily AI use. 51% are more concerned than excited. 83% of Americans say AI won't make them more productive, and 94% percent say it won't make them happier. This was in response to this article. We dropped it in GPT, and GPT wrote back and said this, you ready? Said the gap between how experts. Yes, and every day people view AI isn't just about knowledge, it's about experience. I can process data and generate insights, but I don't live in a world where AI decisions impact my job, privacy or sense of urgency. That's why human perspectives, especially diverse ones, matter so much in shaping the future of this tech. Oh, that is very nice. Whoever wrote that into the algorithm for GPT has got it nailed. Very, very

Paul J Daly  10:21  
nice look. I think this is just typically, like all new technologies, the first lizard brain reaction is going to go to fear, oh my gosh, something's going to bad's going to happen. And I think this is very clearly and obviously a matter of experience. I have not shown anyone simple AI tools like chat, G, P, T, I have not shown anyone that tool without them spitting out two or three things that they wanted to deploy it on, not one. And I'll just personally saying like we use we've been using AI for a long time. A lot of our peers and friends use AI because we've run with that kind of pack. And everyone that does realizes that this frees you up to make faster progress, to actually get a lot of the ideas and thinking out of your head faster. And I mean, I used everything from cooking to behavioral diagnoses to writing social media posts to I actually diagnosed this morning, I diagnosed my dishwasher leak successfully.

Unknown Speaker  11:22  
That's unbelievable.

Speaker 2  11:23  
No, I actually, I actually used it to repair my dryer, like, a couple weeks ago. So, wow, yeah,

Paul J Daly  11:29  
I mean, the it is. It's all about experience. It's all about use, understanding it, utilizing it. I've shown it to my wife, who was completely skeptical, and now she's like, a daily user, right? My wife too. It's unbelievable. Yep, literally, the same story. My wife uses it to study. No this morning, I should have made a video about it. Literally, my dishwasher has been leaking. And I've been like, we've just been kind of limping along. But like, what do you do in your dishwasher is leaky? I gotta call the dishwasher guy. Like, no, I'm not calling the dishwasher guy. I'm taking a picture of the of the label of the model label. I'm saying this is leaking from the bottom left corner. And it's like, oh, typically, the thing is this, there's these little, tiny $8 part that you put in the corner that could be worn out or missing, you know, from use and wear. And guess what? It's missing, just not even from Amazon. It'll be here tomorrow. There goes the dishwasher. Leak. Sorry. Maytag, man, you're gonna have to sit around

Kyle Mountsier  12:21  
a little longer. Wow, that's nuts. Well, I would say, like, get around if you're not familiar with it, if you're not using it, if you're not experimenting with it, get around people that are because it is making people more efficient and providing results. If you listen to Steve Greenfield, he's like, no, there. There will be AI agents taking over significant levels of jobs in the automotive industry, it'll be the people that can curate and craft those agents that win. We'll be talking a lot about the at ASOTU CON, about this, people that are really using it. I mean, people that I know that have like, five or six tabs of AI open at all times trying to figure out how to integrate them and work work in between them. So you got to try it out, but the quote, general public, they'll know soon.

Paul J Daly  13:03  
Yeah, they don't know. But you're, you're running an automotive business, so you need to be the best at this stuff, because it actually frees you up to spend more time with the people. Yep, right. Bottom line, alright, I think we've done enough damage for today. You got a flight to catch, and I have some service lanes to walk, because I love service department in the morning. Get

Kyle Mountsier  13:19  
down fresh now. Yeah, absolutely change

Paul J Daly  13:21  
some oil. See some people. Show people AI and care about some people. See you tomorrow.

Unknown Speaker  13:26  
You.

Transcribed by https://otter.ai

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