More Money - Less Work, Carvana Same-Day Delivery, Jailbroken Tesla

Paul Daly: 0:27Yo Friday coming in super duper, duper, duper, duper hot. We've got union stuff to talk about next day delivery from Carvanha. Same day delivery from Carvana. And let's get to hacking some

‍Unknown: 0:39

Tesla's love how you said that? Let's get to it. Let's do it.

Paul Daly: 0:50

I can't believe it's Friday this week is like,

Kyle Mountsier: 0:52

man, I was telling Nathan, our producer, he sits in the wings. I was telling him yesterday, I was like, I don't know how these people travel every single week of the year, like what do they do with their lives to keep them in order? Because I'm like, I travel one day in a week. And all other days feel like just sideways? Yeah,

Paul Daly: 1:13

I know. Well, especially. It's funny, though. Like our Wednesday travel schedule. It's like we were home for dinner.

Kyle Mountsier: 1:18

I know. I mean,

Paul Daly: 1:20

it's like we do travel a lot from time to time. But we're like, oh, we traveled messed this up. It's like, well, I woke up just pretty close to normal time out. And I was actually home about 10 minutes earlier than I usually

Kyle Mountsier: 1:31

same. My wife was like, What is this life? Like? What do you do? Two years ago? Do you like just drive home and back did back and forth to work never traveled to like, up? You know, my son was just like, that's just in Baltimore. They were hanging out with friends dads in Baltimore. And they're like, skirt. What?

Paul Daly: 1:50

Yeah, my kids follow my Instagram. And they still don't really know what I do. Right? They're always like, kind of like, Oh, you were just like, oh, yeah, I didn't really see anything. I was kind of just in a hotel the whole time. But you know, we make it look a

Kyle Mountsier: 2:04

lot more fun. Hey, this is this is random. I was at I was at some friends houses last night new friends. And I just want to, to the industry to people that are in the industry expand our thinking because I'm there. And these are two of the guys I hadn't met before. They were like, Yeah, we're in the auto industry. I was like, Oh, cool. What do you do? One is in parts manufacturing, supplying tier one and OEM parts. Like you like your chassis. He's right. I'm like, oh, yeah, this cats. Like I'm telling him about more than cars. He's like, Yeah, that's amazing. Because like, if people don't sell cars, I don't have a job. Right?

Paul Daly: 2:42

So you're saying the circle is bigger than we thought,

Kyle Mountsier: 2:45

way bigger. And then and then the next guy goes? Yeah, I'm in the auto industry. What do you do? Oh, I work for Geico. I'm in auto insurance. I'm like,

Paul Daly: 2:55

I didn't do that. Like my

Unknown: 2:58

auto and we don't sell

Kyle Mountsier: 2:59

service and Body Shop cars. Like my man doesn't have a job. Right? And so tarts. Oh, I love that thinking you know what? Bring some of that bring some of that through soda. And actually,

Paul Daly: 3:11

we were going to talk about this a lot. So if you're not at a soda con, we truly believe this is the best place you can be for two days and September 26 and 27th. For the reception on the 25th at asoto con.com. You can see the speakers we've released. We just had some other speakers confirmed yesterday, which are other amazing speakers. But to your point of broadening in our broadening our horizons, we're gonna have a very special guest there. His name is John Sacco and he is in the metals recycling business. So they supply equipment to metal recycling plants, scrap yards, and they've made an insane documentary called repurpose. It's like a docu series. Our boy Darren Doan is producing it. It's actually on Amazon Prime repurposed and he's flying out to a soda con to talk about how important the recycling business is to automotive and keeping America up. It's he's an amazing guy Darren is amazing. He's just one of the one of the threads of texture we're going to have at a soda calm are calling to get the south by southwest of the auto industry. So if you if you haven't looked at it, check it out of soda. con.com We promise you will go home changed for the better and inspired and energized and we'll try to give you a little taste of that on the podcast

Unknown: 4:18

this morning. Talking about some news. Let's do it. Okay. Oh, probably worth mentioning.

Paul Daly: 4:23

Probably worth mentioning right after the show is over. We're heading right over to clubhouse to David Long's all things use cars room. Very controversial topic today. The topic is fire your vendors. I don't know what it means. He made the topic up. We're gonna go. We're gonna well, we'll certainly have a spirited conversation over there. Okay, speaking of spirited conversations, oh, see. I didn't do it on purpose. Just hit me. Citing the 40% rise of CEO salaries of the Big Three automakers Sean famed the president of the UAW. We have must be the money Shawn Fein, President of United Auto Workers Union announced the union would be seeking wage increases of 20% upon the ratification plus an additional 5% Over the next four years totaling a 40% wage increase. So he said, quote, the CEOs of the big three over the last four year agreement have enjoyed a 40% increase on pay on average. So I don't think our workers asking for their equitable share, when inflation is gone up over 20%, I don't think it's a lot for our members to get a lot to ask for our members to get their fair share. Also included in the proposal is a 32 hour workweek with a full 40 hours of pay. He said, I think it will create more jobs and more opportunities for people to get their share in the economy. I'm not sure I'm following his logic. But I grew up in a union household, my dad was a union phone installed. And like we used to joke like the union channels, more money, less work. Right. And so this this any closely, GM released a statement pushing back on that initial kind of analyst who called them demands yet, but it pushed back against the broad demand saying that, that they would threaten our ability to do what's right for the long term benefit of the team and also alluded to the fact that there are other entrants coming in that are non union labor. And they said, We think it's important to protect US manufacturing jobs in an industry that is dominated by non unionized competition,

Kyle Mountsier: 6:27

that's the trigger statement for me for all of like, the negotiation tactics of start hives that, you know, meet in the middle type things I get, what the what they're doing, just pointing to profitability, and coming back over here to, you know, what the workers are getting, and I think there's going to be, you know, there's always like, some meat in the middle whenever you come to a negotiation, but for the OEMs this early in the game, just to kind of poke the fire with like, Hey, guys, it's it's actually important that we kind of keep expenses light so that everybody keeps their job in this looming, like non union, unionized workforce scenario, with all of these new entrants, that's a that's like really, really poking the fire early on in these negotiations, because that's, that's kind of shots fired on a we it's, it's not just do we want to give you raises, but like, is there a future for unionized work in manufacturing for five, six years from now? So

Paul Daly: 7:24

yeah, we've seen a number of comments on LinkedIn and conversations going on talking about how this is kind of the most aggressive stance a union leader has ever taken and how it's pretty dangerous for both sides of the fence it absolutely you know, and so we're hoping that you know, cool heads prevail that the the industry kind of on both sides kind of bands together and makes right but from a dealer if you're a dealer guess what kind of a long David Long kind of long lines with David Long says about is there a recession? I don't know I don't care in our stores we're going to create our own economy Yeah, I think dealers have an opportunity to create their own scenario with the things they can control

Kyle Mountsier: 8:01

well it's been watch out for should watch out for us vehicles right in this oh my gosh, environment, it's like hey, used as the way to go if you're not a great used car operation, one getting things better cars, watching what you're used car operation looks like, you know, be especially for the big three, like new car operations may not look the same in q4 as they have. So you gotta get down with us car operation. Speaking of used car operations,

Paul Daly: 8:28

segue. Perfect. Carvanha has begun offering same day vehicle delivery to customers in specific areas, Arizona, Indiana, North Carolina after initially launching and testing the program in the greater Phoenix area where their headquarters is, same day delivery eligibility depends on the proximity of the customer to the selected vehicle. That makes a lot of sense. And it's some other other order sentiments in order logistics. Carvanha plans to further roll out the offering across its nationwide footprint in upcoming months. And they are saying their expanded infrastructure, specifically when they acquired a desk and have all the auctions and reconditioning facilities plus all the paperwork processing capacity that they have. They said makes this same day delivery service possible, man, same day delivery. Sounds familiar, doesn't it?

Kyle Mountsier: 9:16

It sounds familiar. It's like go to the dealership. Like a car. Car. Yeah, drive it away in car drive car away. Yeah. You know, the difference here is like they're definitely pulling from a wider radius. Like they're making that making the ability to move a car across a couple few 100 miles a little bit quicker, because they have this delivery network, this storage network. And this This was the play that I thought was going to be a lot quicker when they acquired a desk just just under a year and a half ago. Because just like driveways doing and attempting to do and the way that lithium lithium is coming out is the delivery center network is absolutely the fastest way to get into more places in the US. So I'm not surprised by Buy this and I think I'd like you just have to watch out. Because if people can get cars quicker, that aren't as close to them without having to drive to them, they're going to be looking for that same convenience, from dealerships as well. And so how do you leverage your networks? How do you leverage your medium to large size regional group to make sure that that happens, you know, we're just at West her. And they have like a whole delivery network within their two and a half mile, two and a half hour radius that just moves vehicles back and forth utilizing technology and people resources to make sure that they can seamlessly move cars between their dealerships. And if you're not doing that, and you are a mid to large size group regionally located, I would highly look at that just because Carvanha is going to set the expectation like table stakes

Paul Daly: 10:45

are higher. Absolutely. Especially with same day and you think, yeah, one thing that they Carvanha has done super well, is the front door being their homepage and their website, right and that convenience, pair that with logistics, right? And dealers can do the same thing. Absolutely. They can and they can do it better.

Kyle Mountsier: 11:04

Because you have actually humans, they can do it better. Yeah, way more humans that care. So but will they

Paul Daly: 11:09

will then, but speaking of things you can or can't do. Segue. Apparently you can.

Kyle Mountsier: 11:16

Apparently you can't. So there's three students from an I'm gonna butcher this. Technische Universiteit Baron.

Unknown: 11:25

Whoa, yeah, way better than I would have done. Okay. Okay.

Kyle Mountsier: 11:28

I'll look how little I had a little German in college because I was a music major, give it to him, an independent researcher have cracked, and an independent researcher have cracked Tesla's infotainment system scoring free upgrades, like those infamous heated rear seats. Basically, what they've said is, hey, look, we've jailbroken a car. And they can unlock things like self driving navigation features, where normally they were off limits. The researchers were also able to extract personal information from the car, contacts, calendar appointments, call logs, visitor locations, Wi Fi, passwords and session tokens from email accounts. Whoa, yeah, it's a whole bunches of stuff I was following this yesterday was all over the internet, we actually it was in our daily email, we thought we'd have to put it here. The the technique requires them to have access physically to the car, but they, what they've done is done something called voltage glitching, which involves manipulating the supply voltage. So how much voltage is going into the processor and overloading it, so that then it glitches and then they just basically slide right in. And then they get right to the processor, and they can access everything that that car has to offer. And this is the this is the scary part right? Up until now, Tesla and all these manufacturers are like, Oh, someone figured that out poopy poop software upgrade, right? This one, they're starting to say, hey, look, this actually may require a hardware update to work around.

Paul Daly: 13:04

So watch some jailbreaks I don't know. I mean, like I'm thinking of a very Elon Musk play would be to make something so that once the voltage gets messed with, the whole car delivers like a taser like electric shock. To whoever is doing it, right. He's like, Oh, yeah, watch this. I don't know, I think it happened but bound to happen, right? Like, what's going to spring up from this, like, if it's electronic, if it's got valuable data, if it's got features, and you know what it's like, off the end. It's

Kyle Mountsier: 13:35

the never, and technology is always going to be something to crack for people. But this is just fun. It's just I, if I'm going to do a ship, my guess is people are watching this on the tick tock and the Instagram and the Twitter and or the x or whatever, and they're just talking about it. So it's just something that being aware that people are thinking about how their software in their car is a lot more related to their software and their phone than they ever thought it was. And then we're approaching vehicle purchasing with that mindset. Just something to be aware of on that showroom.

Paul Daly: 14:06

No doubt. Well, look, we're heading over to the clubhouse, just search clubhouse in the App Store, go to it, search all things, use cars, we're gonna be there. Probably a couple 100 of our friends are going to be there. And we're going to talk about the industry head to a show to conduct comm business in September.

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