Very Poor Auto Privacy, Potential Strike Targets, Most Expensive Toyota

Paul Daly: 0:24Thursday. It's actually the first day of the NFL. So I feel like we're really into the next season now, but we're going to talk about very poor auto privacy, potential strike targets, and the most expensive Toyota. The people really

‍Kyle Mountsier: 0:42

not know me definitely not telling you what there is this special thing like today this morning, I'm running. I went to the gym because now it's like dark in the morning here in Nashville because we're in a weird central timezone went to the gym. And it's like, everything was NFL, and who's playing this week? Who's on the injury is questionable. And, like, I'm like, Oh, just getting excited watching that. I'm like, okay, yeah, we're doing it. We're doing football. I live.

Paul Daly: 1:12

I love football season. I'm so excited through that we finally caught up like DirecTV no longer has a death grip on NFL Sunday Ticket. So there's no longer that scramble of like, how am I gonna watch the game today? Thank you.

Kyle Mountsier: 1:25

Where's NFL Sunday Ticket?

Paul Daly: 1:27

It's YouTube. Oh, yes, it sounds like we're all getting you to preemie looks like I'm about to get a YouTube subscription. Hey, you might be doing no more ads. See your ads is

Kyle Mountsier: 1:40

that this is the kind of gift we give you. Here here at a soda. I

Paul Daly: 1:45

know that there's probably a lot of people that didn't know that. I was on that train for a while. Hey, we hope you're having a great week. So far. We just got back from filming episode four of more than cars and let me just say it's gonna be a banger. There's trick shots. There's amazing stories throughout the dealership cars, kind of our downtown handing out cheeseburgers. Kyle is taking basketball shots in high heels. I got a

Kyle Mountsier: 2:09

lot of flack for that one. It's not enough. It's

Paul Daly: 2:11

flak. You know, this is one of the things I take a lot of pride in. Of just like seeding the idea. Like, and then watching it happen. Oh, sure. It was my idea. I was like he'll do it. He's the cause the kid that like if you dare him, he was like, Oh, yeah. Oh, watch this. Play this

Kyle Mountsier: 2:27

granted, that didn't start till I was in like college. By the way. When I was a kid, I had been like at a run all the way inside. And I was in middle school. You did not need to see my rear end headed out of that.

Paul Daly: 2:39

But he he outperformed what I expected in the high heels. I'll just put it I'll leave it there. Oh, hey, we have a soda con coming up. Listen, the timer is ticking. We're less than three weeks away, everybody. We're getting so much momentum and inertia around this soda con presented by cars. And stream companies want to thank you so much for making this happen. Look, the folks at Carson stream, I'm just going to say it. They're thinking and looking over the horizon constantly, which is why they make so much great, such great partners for an event like this. focused on collaboration focused on spending time together with dealers and practitioners, learning from one another, not just people preaching, this is how you should do it. This is how you should do it. These are people that are saying, this is how I'm doing it every day. And this is why it's working. Let me hear your problem. And maybe I can help you work through it.

Kyle Mountsier: 3:29

And know what's you know, what I love? I've had multiple conversations with speakers that are on panels or doing mini keynotes that they when we ask them to speak. They're kind of like, I don't know if I'm the best one to speak on. So true. And here's here's what's cool about that. I was I was reflecting on that yesterday because I had another one of those conversations. And the reason is is because it's not like everybody has it figured out so all of these panels and keynotes yes there will be people that have said yes this is the thing that has gone well done well things that I've learned but that they are still works in progress like we're gonna see work in progress happening in real time probably on the panels where people's opinions and ideas are challenged and then new things kind of spring up because the way these people they're not just resigned to I've got it all down. Yes I love that mentality because that's

Paul Daly: 4:26

a humble leader. That's a humble learner understanding in this industry, right? There's no one size fits all doesn't exist. Never ever, ever will. That's the beauty of it. So go to a soda con.com Get your tickets now check out all the speakers click through the different days and stages see all the sessions and listen if you've bought a ticket already, and they're already hundreds of people that are coming book your hotel room today, because we have the discounted hotel room block at 175 a night that's gonna go up to like 375 a night the moment the block releases, so please book it today. We want Just the main hotel and we don't want you to pay an extra $200 A night if you don't need to. Because Kyle beg, borrowed and stole to get them to give us a 175 a night deal. You can't get it. Well, we got it. Alright, let's talk about speaking of stealing. Segway. Segway for number one.

Kyle Mountsier: 5:19

I'm feeling like, this was yesterday's story lead. And then yesterday story lead was today's story lead because they kind of match. So I

Paul Daly: 5:26

know. I know. I know. You know, we're on site. A recent report by the Mozilla Foundation. Yeah, you know, Mozilla Firefox company, best known for a very privacy minded Internet browser has labeled modern cars as we quote the worst privacy nightmare, highlighting extensive data collection practices, from basic to personal information to sensitive data, like genetic details, right? I don't know what there's a couple of get that record scratch ready, because there gonna be a couple of those in the story. And and Okay, so here we're gonna we're gonna quote from the great article that was posted about this is why we are worried that our doorbells and watches that connect to the internet might be spying on us. car brands quietly entered the data business by turning their vehicles into power data gobbling machines, says Mozilla in the report. Like, once you tell us how you really?

Kyle Mountsier: 6:19

Yeah, I mean, here's Look, when is the last time when you entered a vehicle and we're like, accept the privacy settings on your vehicle? Yes, you're gonna have to do that.

Paul Daly: 6:29

What I know. And you know me, I'm a privacy like, a more freaky knew for sure. On the privacy side. The study revealed that 92% of automakers provide minimal control over using user data and 84%. So 84% Share it with third parties. In the data business, all 25 car brands studied, including Ford and Tesla did not meet Mozilla's privacy standards. Collecting what they say is excessive personal data from medical details to driving habits, notably Nissan and Kia, also collect data on users sexual activity. I was waiting for that. I don't know how they know. I don't want to know how they know. Also 37% of mental health apps, which are notoriously bad for data privacy standards, they actually provide better security details than the cars do. So Mozilla spent over 600 hours on the study, which is way more than they usually because they wanted to be thorough. And it's worth noting that Tesla where they rank on the list, at the bottom test was one of the worst that makes how do we even I mean, dang ban, I can't even

Kyle Mountsier: 7:40

really unpack this outside of record stress. Oh, boy,

Paul Daly: 7:47

this has been a conversation that that people in the industry has been having, you know, the automotive ventures fund actually invested in a company that his wife stayed on, right, the wife's data. But what's

Kyle Mountsier: 7:59

his writing data? Right? Yeah, because so many people connect their Bluetooth and all the sudden, all of your contacts, all of your cell phone data is just linked to the car. But it's so much, so much deeper, I don't even understand like Nissan and Kia collecting data on user sexual activity, is that because they're tapping into the apps that are on the phone that are connected via Bluetooth, or

Paul Daly: 8:23

it's gotta be, it's gotta be like reading different indicators from apps and this and that, and all that they're at? Like,

Kyle Mountsier: 8:31

I mean, just just feels like driving habits alone, if you know where someone is going on a day to day basis. And that's not protected. This is going to like cheese. I mean, it Gosh, this report has to light a fire under the industry. That's the only way I can see it.

Paul Daly: 8:47

I know. I know. I mean, the conversation has been coming up, it seems like an ongoing thing. Again, not like when you turn in your car and wipe the data or get out of your rental car. This seems like it's a flow of data, just like when you have Google on your phone or Facebook on your phone. But seems like very much less regulated or at least less paid attention to than it should be. I think you're right, Kyle, I think this is going to like a major fire.

Kyle Mountsier: 9:11

I'm paying attention to yesterday, the hacker hackathon thing. I'm like y'all please solve this. Like just everyone turned their attention to this.

Paul Daly: 9:22

I think that this it seems to me that it's not as much like a hacking thing. As much as it is like a data sharing agreement is sharing. Yeah. And it's just like this new thing that's just producing and capturing all this data that somebody somebody knows, right, that person's gotten a lot of phone calls and email because somebody knows what it's been doing. And it's probably been selling it to a third party, right like within the OEM structure right like somebody their phone calls this morning.

Kyle Mountsier: 9:48

You can ask Brian Kramer two weeks ago, he messaged me something about I don't know the Tesla. Charging connection stuff and I I just messaged back and I said, Tesla's a data company prove me wrong. And he said, I can't. Yes. And if you know Brian Kramer, you know, that's a major statement.

Paul Daly: 10:09

That is a Yeah, because he could prove me wrong even a little bit you would try or even if it was worth arguing, arguing he would he would throw up a couple of contrary points and he said he was just I got nothing speaking of getting nothing, and are probably better. Definitely, some people are gonna get something when this whole thing is over. Definitely about arguing. In an unprecedented move. The UAW is considering a simultaneous strike against Detroit's big three hasn't been done in the 88 years of the UAW, the potential action involving nearly 150,000 workers could severely drain the UAW is $825 million strike fund, strategist, the bait, like the sustainability of a move like this. So basically, they have a strike fund, I didn't know this. But if they go on strike, each union member gets $500 a week, which is substantially less than they're making, I'm sure. And potential health coverage to help them sustain the strike, which is cool. But you know, 825 million goes pretty quickly when you have 150,000 people out call 150,000 times 500 is 750 million. So everybody gets a check. Everyone gets a well, that's a great point, because that pivots to the other suggested strategy. Striking all three at once doesn't mean all of all the people at all three. So here's it's like the end bottleneck, right? Here's a quote from Shawn Fain, who has obviously been the focus of a lot of our conversations and nationally as well. He says, Let me assure you, the VPs, myself and the leadership at this level, the bargaining committee committees, etc. We understand how to manage this fine set in response to a worker's question during a Facebook Live Stream. He said, we have a plan and come September 14, if these companies don't deliver, they're going to see that flat unfold. I was like this guy, just how Lee you know, the more he starts to think this guy, he's case controlled man, he knows what he's doing. So the strike would likely target key production facility. So they're calling this bottleneck strike. So it's sounding more like, right, like a very strategic offensive. And, you know, so they're going to be targeting these individual to get max impact of these bottleneck facilities. So we all we all have already talked about the potential loss. One interesting point I thought I'd put in here is that Baird Equity Research estimated that a simultaneous strike that lasted for six weeks could put 800,000 vehicles at risk. If it goes for 10 weeks, they said the industry is out 1.5 million vehicles.

Kyle Mountsier: 12:42

Good. Yes, I talk about you just got this right here is like I would be paying so much attention to this no matter what manufacturer you're a part of this is not just about the big three. This is about the used car market over the next nine months. And if anything happens past 234 weeks, it doesn't even take 1000 vehicles, it takes three 400,000 vehicles to have a massive impact on rental fleets on used car availability, on leasing, on three year leasing that we're running into from post pandemic changes. All of that changes nine months, and then changes the three year horizon on the site as well. So just watch out for it. It's like yes, and people I've talked about this, we've been through these strikes before. It's just something to be aware of, if you're managing your scar inventory and understanding exactly what's going to happen in q4 and beyond and how to structure your business so that you can still be successful with waning new car inventory from the major man US manufacturers.

Paul Daly: 13:48

It's gonna be it's gonna be hot September man. Under we're gonna be talking about this.

Kyle Mountsier: 13:53

Totally Yeah, everybody's gonna be it's gonna be hot. It's

Paul Daly: 13:56

ah, speaking of making it hot. The Segway game was gonna be okay but just knew the beginnings

Kyle Mountsier: 14:04

ready to go. So not wanting to be left out of the ultra Luxe game Toyota has unveiled a revamped plug in hybrid version of its prestigious century model often dubbed the Rolls Royce of Japanese cars and if you haven't seen it you can check take a look on the screen period basically looks like the Rolls Royce

Paul Daly: 14:23

of Japanese cars it looks yeah I mean how would you explain this? This looks like a Rolls Royce and fill in the blank

Kyle Mountsier: 14:32

it's like a Highlander

Paul Daly: 14:35

kind of looks like a Yeah,

Kyle Mountsier: 14:36

like a beefed up Dodge Challenger mixed with a Rolls Royce on Toyota

Paul Daly: 14:42

after with a softer you know

Kyle Mountsier: 14:44

curve. Yeah, exactly. There you go. So traditionally reserved for Japan's elite the $170,000 luxury car steel known for its classic elegance and spirit craftsmanship will now be offered to a global audience signalling Toyota is in bed Just move into the international luxury market. The interesting thing is they are producing no more than 30 of the new century models a month. But they're not breaking down, like where are those cars are going and what country and what region? It seems like they are going to come into the US though at this point. So we'll see. We may see a couple of those vehicles floating around out here. The vehicle if you're taking a look at it, it's definitely meant for chauffeured passengers. So it sounds honoree it's not meant for like a daily driver or anything like that. It's features like reclining car seats, a rear seats, the ability to join online meetings directly from the back car. It is full on lap of luxury.

Paul Daly: 15:44

It's the reclining seats to or like full lay down with leg support. They look pretty cool. I will say this, how much was the Cadillac? silastic?

Kyle Mountsier: 15:54

Oh, 320 40. Yeah,

Paul Daly: 15:56

like, this is like half the price of that. I mean, you think of ultra ultra luxury. So if you think ultra luxury$170,000 for an SUV like this seems like a really great value. I wonder who's going to sell him like Toyota dealers? Lexus dealers? Both? Neither?

Kyle Mountsier: 16:14

I would think Toyota dealers

Paul Daly: 16:15

make it doesn't have it doesn't have a Toyota badge on it. But why not? I mean, because 170k Maybe I mean, shoot, if you want to Sequoia right now, you're close.

Kyle Mountsier: 16:25

They're getting close. That's Apple, right? It's I mean,

Paul Daly: 16:29

so there's an interesting chart. Do you have it Nathan to put up a love this. If you look at your annual growth rate of sales by vehicle price, this is from 2021 to projected through 31 vehicles less than 80,000 have increased just about 1% growth makes sense at 240,000 are projected to increase 8%. I think that's because a lot of vehicles have just gotten more expensive. And

Kyle Mountsier: 16:52

to that all your trucks and SUVs are just in that range, right? The

Paul Daly: 16:55

150 to $300,000 range 10% increase. And then if you bounce up to more than $500,000 That's a 14% increase. So just

Kyle Mountsier: 17:06

injecting a lot of that ultra luxury market to come into play in the next seven to 10 years.

Paul Daly: 17:11

Yeah. And I think this is just I mean, we're seeing this in real estate we're seeing the trend and like people are spending money on these extravagant purchases. Brian Ortega waves in ways in and he says pardon me, do you have a Grey Poupon? Look that's dating you right now. If you know what that commercial is Brian Ortega. I think you absolutely need to cry you should read that relives this

Kyle Mountsier: 17:34

you have to remake that commercial. Absolutely. Oh man. I wish we had that throat because one of the bunch of ultra luxury. We're seeing this the market continually press into luxury sales luxury brands luxury experience. I think the question that was asked on the wheelhouse last week was hey, with all these ultra luxury cars coming out with mid major market players, are they going to be able to compete with the experience side of the game for these ultra luxury players when it comes to service and the way that they care for these customers and lifetime value? I think that's going to be the big trigger point for these manufacturers understanding how to care for ultra luxury customers when they're not used to it as a brand. Oh,

Paul Daly: 18:16

we know if you can pull that off actually. It's possible for more to pull it off. We hope you have an amazing Thursday. We hope you go to a show to con.com Check out the speakers get your tickets. We got a lot of collaborate to do.

Unknown: 18:42

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