CARS Rule Under Trump, Mexico Confronts Musk, AI Robot Art

Paul J Daly  0:01  
It's Friday, everybody, it's November 8. I almost don't recognize Kyle and I, we're both in our studios at home. Today, we want to talk about some things that might be happening with the cars rule Mexico and their factory, or potential factory for Tesla, and some AI, expensive AI art. Because just the weirdest, if you didn't know,

Kyle Mountsier  0:23  
you're about back into where I feel like there's been recently, like with all the AI stuff, speaking of which, you can go to auto index sign up for the newsletter that was dropping on Tuesday. Okay,

Paul J Daly  0:35  
that's let's talk about what that is for a second. We at ASOTU have been really leaning into AI for the last year. When GPT first came out, we were in it. We've been tracking it. We've been using multiple tools. We pay attention to what's going on in the tech side. It's deployment across automotive tech. We're dialed in. We're plugged in. We got the friends. We're I mean, like right now, being ahead in AI is like, you have a six month advantage. That's all right, so you need but I'm saying ASOTU Has that six month advantage. Yes, we do. So we want to share that, because we hear all these questions about it throughout people in the industry, the term AI is the new CDP, right? Like everyone's thrown around the term AI like they were CDP two years ago. We want to make sure the auto industry, community, you who are part of our community, are able to keep up because it's a blistering pace, and so we are releasing a second newsletter called auto industry.ai auto industry.ai good now we have contributors like Steve Greenfield and Todd Caputo and a bunch of others. Kyle and I have started writing articles to actually give our thoughts and context on it, and our goal is that in just one or two emails a week, you can keep up with what's going on, so you're informed. You make good decisions and tell you what we're trying to give you a lot of your time back if you learn how to deploy these tools the right way. So it would mean so much to us if you sign up for auto industry.ai. So they go, there do it. You can keep up with us, and we're trying to keep up with them. So there you go. It's how the world works.

Kyle Mountsier  2:01  
There you go. That's all. That's all. Right, let's

Paul J Daly  2:03  
talk about some news. Let's get into the no, there's still a lot of news. And here's an interesting one. Federal train commissions new regulations to combat retail scams. You know what it's called? It's called the cars rule. Is now facing an uncertain future. No surprise with the with President Elect Donald Trump's second term. Here's a breakdown of what might be ahead, right? There's all speculation at this point, but they may his election. In general, they're talking a lot about reducing federal oversight across the board, but also of dealer practices, as he's known for, favoring deregulation, right? We all know this. The cars rule already is contested heavily by nada. We've covered it extensively. The rule could lose FTC support in court now that the tide is shifting, Francis current from Tully rickney, the law firm says Trump supporters generally resist regulatory measures, making the cars rule a likely target. However, reductions may cause states to increase their enforcement. So it'll be a little balance, which seems kind of healthy actually, the FTCs quote unfair or deceptive fees. Rule may remain, as attorneys like Chris capuso. Capuso believe it resonates more with consumers. That's good, right? Transparency is good. Okay, so here's a quote by Francis. He says, whether or not Trump cares about the FTC, he's probably going to appoint people who will roll back some of those things. So, big conversation now, well, this

Kyle Mountsier  3:22  
is, I think, what is important here. And when you talk to the people at nada, and you talk to some of the people across the industry that care the most about this, nobody is mad about a good amount of like the core thesis of what being a good auto dealer is and regulating those things and and that is in the cars rule, it's a win for everybody, those things, what everybody cares about. And the reason why people in the auto industry care is the overreaching nature of the cars rule. And I think that's probably get what we're going to see kind of peeled back is the things that create requirements that could lengthen a cardio by 45 minutes or an hour just because of the increased documentation or the increased pressure on marketing departments to provide long term history about marketing which is not regulated anywhere else in marketing, right? These, these things that increase the number of people or hours or time committed to just creating a car deal or a service appointment, and that's what I think we'll probably start to see peeled back, but we'll still hold to and this is where Chris capuso, capuso was saying, like, hey, there's still gonna be some things in here that are important to, like, lean into, because they are actually really good for the consumer, and they probably weed out the bad that's and that's good for the industry. It

Paul J Daly  4:49  
is good for the industry. And the reality is we were just yesterday. We were with like, almost 50 state representatives or communications directors and some C level people from. Have all the state associations across the country, and one thing was very clear is that there are some few bad actors doing these things, and they spoil the soup for so many other the rest of us. So I think showing people that the auto industry is about transparency is about great customer experiences focused on that is good, and all the other stuff that gets in the way of that that's in this car rule is bad. So it's never, it's never open shut, right? But

Kyle Mountsier  5:29  
it's speaking of open shine. That one was good. That one was so good following

Paul J Daly  5:40  
Trump's election victory, Mexico is pushing Tesla for some clarity on the previously announced giga factory in Mexico. Tesla announced this giga factory in March of 2023 looking for rapid construction like they did in Shanghai. They did stall by the end of the year, with Elon Musk citing the uncertain global economy as a factor, opting to build its Robo taxi in Texas instead leaving the other planned vehicle models for the Gigafactory Mexico to be canceled. Mexico did do a lot of work to get the site ready and to make sure they could receive this. They're afraid that heightened tariffs on Mexican goods they want. Elon Musk to clarify, no, everybody's sweating a little bit around, you

Kyle Mountsier  6:19  
know, the area, right? Yeah, like, but we spent so much money, so

Paul J Daly  6:22  
their economy minister Marcello ebrand said in a recent radio interview quote, I'm going to set up a meeting with Musk soon so that he tells me exactly what he's thinking and see what we can do. So this project moves forward.

Kyle Mountsier  6:34  
Look, if I'm Elon Musk, I'm figuring out how to make this happen, right, especially knowing that my production levels potentially are going to need to be increased under this new administration because of the potential focus on EVs. And this is a place where a lot of manufacturers have found, like, fairly localized, at least North America, middle ground, ways to produce place to produce things and, you know, so I bet this story is going to get a lot of attention.

Paul J Daly  7:09  
It'd be real. I think it's a very complex issue, because after being so like, adamant in the election, like, and bring, you know, Trump's very big on bringing manufacturing back to the US and all that, it'd be an interesting look for Elon to be like, and I'm gonna make them in Mexico, by the way, we're just gonna walk right over here, unless he makes them in Mexico and exports those vehicles somewhere else and then brings more, I don't

Kyle Mountsier  7:31  
know. I mean, Tesla's. Tesla's doing a lot more than selling cars in the US.

Paul J Daly  7:35  
They can do some other things in that factor too, like build some robots. And Tesla

Kyle Mountsier  7:39  
has a significant impact on the GDP of the US. So it's important to continue the high production levels. To do that.

Paul J Daly  7:46  
Maybe they'll build their robots over there. Speaking of AI, hey, making things

Kyle Mountsier  7:50  
robots, stuff like that. Hey, AI da, the world's first humanoid robot. Ada, Ada ADA a Ida ADA set a new milestone as her AI created portrait of Alan Turing, sold at the south beast auction for one a bit over a million dollars. This is an actual robot that paints. You can see there in the picture. If you're watching, you can see the robot and all of the paintings there, the piece titled just wildly interesting, AI God initially estimated at 120 to 180,000 attracted 27 bids. So the portrait is of Alan Turing, who is kind of known as the father of AI was a World War Two code breaker, Enigma machine, altering a ton of history. Ada, capable of speech via an advanced language model, aims to spark discussion on AI's role and its ethical implications. Obviously, South bees, the the auction that sold this piece of art called the sale a new frontier in the art market, blending technology and visual arts in unprecedented ways. Who gets the AI created? Did a human create it? Create AI and that? Yeah,

Paul J Daly  9:10  
where's the money go,

Kyle Mountsier  9:11  
is my question. The money go.

Paul J Daly  9:13  
I mean, it's the creator of the human, creator of the robot on the LL, yeah, for sure. I know it's not like the thing where that's an interesting conversation. Remember the monkey that took a selfie of itself, and they were like, actually, the photographer doesn't know in the photo, because the monkey took it wild stuff. So I don't know who noticed, but look, this is just another example of technology, you know, integrating with art. And this is a conversation we're gonna be having for a long time. And I think this just is one of those little things, like, if they can do it and sell it for a million dollars at Sotheby's, I think that auto dealers can deploy it to make some display ads. I'm just saying, I think, why not? I

Kyle Mountsier  9:51  
think you gotta have some display ads with a I think we're gonna figure

Paul J Daly  9:54  
this out everybody. But look, we hope you figure out your Friday and we hope you figure out the priority is paying attention. To the people, the robots and the elect, all that's gonna be fine. You can go in. You can take care of people today. That's 100% in your control. I vote for that.

Unknown Speaker  10:09  
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