Used Car Only List, UAW Takes a Beating, Gen Alpha Influencers

Paul J Daly: 0:22

Monday, May 12, we just spent a week with hundreds and hundreds of you. But today we're back in the saddle, it feels really good. Talking about the used car only list, UAW taking a beating and generation Alpha influencers, the people really want to know, back to it. We could do a week of recap shows, which is the problem right now, what's good? Do I actually proper recap is in order this year, actually,

‍Kyle Mountsier: 0:48

I am, like, I know that our team is getting in. And we've got a little bit of like, it's gonna take some time to get our hands around all the content and pull together all the panels and do the multicam cuts and all that stuff. But man, there's some sessions that I heard about that I couldn't go to that I'm excited to just like, grab some popcorn, get a little drink, and just sit back and watch. So yeah,

Paul J Daly: 1:14

I know, there's, that's the hard part is you you go and you see so much, but you miss so much. But we kind of have been known to hit the record button constantly. So if you came, thank you so much to the event, if you didn't come, you should check your email inbox, because there is an email that we sent out yesterday, that includes all of the photos from our Nashville team, a whole library of photos, so you can find yourself find your friends, post them, we were basically like, these photos aren't ours, these photos belong to the community that showed up. So check your inbox, because when we sent it like Sunday afternoon, within like a few minutes, we had a 51% click through rate on that sucker. I want these jokers you'll see, you

Kyle Mountsier: 1:59

know, over and over last week, there was this sentiment, and this is what I want the automotive community to continue with is that when you aligned heart set mindset, the understanding the pursuit of a better customer and employee experience, the speed to connection, band partnership, like the betterment of our industry is so much faster. And that's actually something that you can do on a daily basis. Like you do not have to come combative to every conversation and we realize that in person last week, but you don't have to forget about that today. No,

Paul J Daly: 2:42

no, please carry that forward. That was probably one of the most memorable compliments is even after the welcome reception. People were like that was the best welcome reception I've ever been to. And it wasn't literally anything not fancy. I mean, there was imagine this. There was magic. It was a nice room, but you had a few 100 people, and you had drinks, and you had a little music. And that's it. We didn't even have name tags, because we had an issue with the printer. So nobody had a name tag and we might carry over the room better, I think I don't know. I think it did. People like as the best why because the environment that was created there was one to speed connection and so much more to share. Thank you if you were there, if you weren't there. We will do it again. We actually Kyle and I this morning are signing the contract for next year. So pull out your 2025 calendar open your app. This is the first public The first is it. We're gonna talk about it right now. I mean yeah, here we are having a soda con 2025. The same week we did this year so the week of May 12. It's the week after Mother's Day 2025 We have a graphic and everything. Look at this 2012 That looks amazing. 12 Three 616 circle the week. We'll have more details coming soon. Colin I inked the contract as you're walking on stage this year. So please circle it. Put a pin in it. More details to follow but no one should have the thing like oh I didn't know it was coming this year. Knowing that no one should have that excuse. All right. Let's talk about some news and we have a full two week of work to get into. So Automotive News second ever used car only list are used deal as they call it they used only list it's the people who sell used cars only reiterates the 2023 was a pivotal year for used vehicle only retailers Carmax still up front No surprise there. Carvana is recovering despite a lot of challenges last year and some other players that were on the list last year are falling off the list or have fallen off the list. So car backs top of the list sold 765,000 Plus vehicles which is down five and a half 5.2% from the previous year. Carvanha sold 312,000 vehicles in 2023. Down 24% year over year, however, they're focused on profit ability now, room and shift technologies face significant setbacks you know, shift filed for bankruptcy room wound down other use car operations drive time, which is actually car Carvana was a spin off of drive time saw 7.2% increase selling 110,000 us vehicles, Sonic automotives Echo Park increased sales by 15% Selling 73,000 vehicles Carvanha CEO Ernie Garcia said, we're not super, we were not super well positioned to handle all of the change, nor were many of our peers. But now we're seeing some people, the people who are able to pivot still in the game putting down

Kyle Mountsier: 5:39

I mean, you know, when you look back at 2023, it's wildly different already than q1 of 2024. Like these are gross up numbers for 2023. We're seeing the pace of some of these groups in 2024, especially on the US market pick up already. It's interesting to me that in an affordability crunch, they were able to actually succeed with the drive time side of the business. I mean, I saw advertising left and right kind of makes sense if they were able to have the right cars, plus it's their own captive financing, that allows them to potentially buy deeper in the market rather than have to go after banks that maybe held back on on resources last year. So that's kind of like a key insight to me, but you know, Carvana down 24% Carmax down 5.2% It's no wonder that US cars just had a little bit struggled last year compared to previous years. And reality is it's like we're up so high the few years before that, like this is just a normalization. You know,

Paul J Daly: 6:38

the great normalization we talked about that a little bit. I was gonna thinking of a great segue because this one deserves a segue. Do we still have the let me see. Let me see.

Kyle Mountsier: 6:51

I Do I Do I have given

Paul J Daly: 6:54

you a W update? Yes, the UAW faced a significant setback. As 56% of workers at the Mercedes plant and an Alabama voted against unionization. Marking a blow to the union's efforts to organize some more southern facilities over 90% of the factories. 5000 eligible workers voted that's a great turnout and a good representation of the actual intent. 56% oppose the unions with Mercedes officials have been actively campaigning against unionization, presenting their plans to address the employee concerns. So they said this is how we're going to fix the problems. Don't vote for the Union. Mercedes worker Melissa House said we have the company's ear for the first time in a long time. Another worker Rick Webster said the number one issue for me is a better work life balance. The defeat obviously a major setback for UAW president Shawn fain who has been revitalizing the union with his we'll call it a combative approach. The UAW plans in their little bit, they're going to continue their $40 million organization drive targeting various factories, including those operated by Hyundai and Toyota Shan Fein said, while this loss stings, these workers keep their heads held high, we fight the good fight and continue forward.

Kyle Mountsier: 8:13

Well, you know, I mean, this is the first it's the first one kind of shocking, honestly, after a few weeks ago, locking down VW and Chattanooga right now it is, I honestly it's another German manufacturer, right? Yeah, exactly. And so interesting to see that happening, you know, and and it would have voted better for them going into the Hyundai and Toyota plants Hyundai having a presence in Alabama Toyota in in Tennessee. But, you know, this may be a little bit of the downward slide because Hyundai and Toyota as as manufacturers are, like, have much better employee morale, at least the perspective the public perspective of it. So, you know, we'll see if like, the pace can continue, or, you know,

Paul J Daly: 9:01

or if this looks like the Philadelphia Eagles 2023 24 season, after they lost that one. It was not pretty after that.

Kyle Mountsier: 9:12

Great way to put it.

Paul J Daly: 9:14

Obviously, speaking of inhabiting segue, whether you're ready or not, here they come.

Kyle Mountsier: 9:22

We're saying it live on the show Gen. Alpha. Yes. Ladies and gentlemen, we have set the words Gen alpha children aged eight to 13,

Paul J Daly: 9:32

which is a lot of our collection, by the way. Yeah. 2093 years.

Kyle Mountsier: 9:37

Yeah, may not be the foremost generation on everyone's brand radar yet, but it's time retailers start thinking about them and their interests. Here's some numbers from a survey conducted by dk C's analytics group. Here's how they go. 95% of Gen Alpha parents learn about new products or brands from their child. Wow. 14 9% of these parents purchasing decisions are influenced by their child's opinion. I got some things to say about that. About 90% of Gen alpha children find ways to make money through chores allowance and online selling getting

Paul J Daly: 10:14

that you're getting that paper dollar bill

Kyle Mountsier: 10:17

91% of parents say their children love to shop with 92% finding interesting new products. Here's where they like to where they like to go to shop. Walmart, Amazon, target Nike Gamestop Five Below shine I hate that Plasco Dollar Tree and Sephora of all places. Oh boy No, I wonder who's eight year olds that are typing on Roblox right now. You know what I mean? Oh

Paul J Daly: 10:47

my gosh, dude, that's freaking an awesome insight. Maybe not five below but Walmart certainly as wow that says Amazon

Kyle Mountsier: 10:56

and big target is all in Roblox is all in all of those games that kids are playing

Paul J Daly: 11:02

the point. The point of the survey is to show that purchasing power is now in the hands of this gen alphas anybody born after 2010 basically. And I think this just paints the case for large scale broad brand building in what is cool, what is interesting, what connects what looks fun, what looks easy. And yeah, trying to think about like what purchasing decisions now. Now I'm like analyzing like, what do we buy? That because our own, like, our Gen alpha, right? Like one of ours is four. So nothing really there going on yet. The other ones are 12 You know, the other one is 12. And then I also have a 15 year old a 17 year old so it's like, tough for me you'd be a better litmus test because all of these kids are like

Kyle Mountsier: 11:50

you, you experienced and you've you've noted this to me like they're your understanding of like new brands, you have new products without a dumbing from their, their cultural understanding is definitely yeah, like and that's a piece for us. Right? That's true. But then, you know, when it comes to like, purchasing decisions being influenced by the child's opinion, I mean, I don't know does like the type of applesauce we buy cow.

Paul J Daly: 12:19

Well, I mean, let's talk back to some of the comments you've made before about your kids asking you are we getting a Tesla?

Kyle Mountsier: 12:25

Well, okay, so that's what I was about to bring up right? Is I think that cultural moment things are definitely in these kids ears and especially when it comes to car brands. Now I know that our kids are obviously close to auto but you know with them consistently saying like Dad, you should get a Tesla when are we getting a Tesla? When are we getting an Eevee like that's going to be in the ears of a lot of parents these days is that evey conversation is gonna be in the swing especially when you think about these like these roadblocks or these these virtual games are all of these new Evie manufacturers are actually placing their vehicles in the game. These kids are going to be all over

Paul J Daly: 13:08

that it's funny I've just as you keep saying Roblox I'm like, look for dealership put a giant banner up front with the Roblox logo was like $100 in roebucks. With every test drive, every kid driving by would notice that sign word. It's Oh, every freaking kid would notice the Roblox sign that and they Jefra Villa Do it, do it. I have a couple dealers, we need to call right now and be like, Look, it's gonna cost you $100 For this banner, it's worth trying. I think I think that's what we have. Oh, man, look, if you have don't follow us on LinkedIn, follow us Soto on LinkedIn. We're gonna be posting a lot of show content. We're going to be releasing a lot of show content to people's about the show. We have a great community, get everybody else in here. They need to be here.

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