Dealers Ready For EV Reset, Hertz Sells Digital, OpenAI’s TikTok Competitor

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Episode #1161: Today we’re talking about the end of the EV lease credit frenzy and how dealers and OEMs are adjusting. We’ll also hit Hertz’s big push into e-commerce with Tom Brady, and OpenAI’s bold play to challenge TikTok with AI video.

• With the $7,500 EV lease credit gone, September’s sales rush gave way to a new normal. Dealers say volume could dip at first, but manufacturers are adjusting incentives, production, and lease programs while retailers recalibrate inventory and ordering strategies.
  • Ford CEO Jim Farley said he “wouldn’t be surprised” if EV sales fall by half without the federal incentive.
  • Like we covered a couple of days ago, GM and Ford are extending the lease credit through creative captive finance workarounds, while Hyundai is offering a $7,500 cash incentive on the 2025 Ioniq 5 and plans to cut 2026 model prices by up to $9,800.
  • Dealer Andy Guelcher says “It was time for this to go away, and I think that [EVs] can stand on their own,” but he expects some near-term demand bumps.
  • “Nobody wants to be in a position where we’re stuck with a lot of inventory that’s not moving,” said Dealer Ken Ganley.
• Hertz is going all-in on digital retail, launching a new e-commerce platform that lets customers browse, finance, and purchase used cars entirely online, positioning retail as its primary sales channel, according to CEO Gil West.
  • The new HertzCarSales.com site has evolved from a catalog into a full-service e-commerce platform.
  • The move builds on Hertz’s August partnership with Amazon Autos, now covering all 45 Hertz Car Sales locations.
  • Hertz has also expanded its Rent2Buy program to more than 100 cities, giving shoppers extended test drives before committing.
  • A national campaign with Tom Brady debuts this week, promoting the simplicity of buying a Hertz vehicle.
  • CEO Gil West called it “a major step forward in modernizing how we serve our customers.”
• OpenAI is betting AI-powered video can win the race for user attention, announcing Sora 2, a new social-media app for its AI video generator. 
  • Sora 2 lets users create HD video clips with audio from text prompts and upload themselves into AI-generated worlds.
  • The TikTok competitor will include vertical feeds, algorithm-driven recommendations, and safeguards against endless doomscrolling.

0:00 Looking back at the history of More Than Cars
2:00 Intro with Paul J Daly and Kyle Mountsier
2:30 The Big More Than Cars Launch
5:33 Upcoming ASOTU Edge Webinar with Uber For Business
6:22 How Dealers and OEMs are Responding To The End of the EV Tax Credit
10:01 Hertz Goes All In On Digital Car Sales
12:

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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