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July 25, 2025 11 mins

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Episode #1104: EV service frustrations rise as electric sales grow, Honda steps into the insurance game, and Walmart unveils Sparky—its bold AI move to replace the search bar.


Show Notes with links:

  • Electric vehicle sales hit a new high in the first half of 2025, but the surge is putting pressure on service departments nationwide. According to CDK Global’s EV Ownership Study, more EVs are hitting the service lane — and owners are increasingly frustrated with the experience.
    • Q2 EV sales rose nearly 5% over Q1; first-half total reached a record 607,000+ units.
    • Only 28% of EV owners reported same-day service in 2024 — down from 40% in 2023.
    • 85% of new EV owners needed dealership service in year one, often for recalls or minor repairs.
    • Multiple visits are becoming common: 34% of non-Tesla owners said service took longer than for gas vehicles, with 21% saying it took 4 visits or more.
    • Our friend David Thomas of CDK: “We know dealers are prepared for EV service, but these numbers getting worse is not a good sign as more non-Tesla EVs are on the road than ever before.”


  • Honda is taking a big step into the insurance space with the launch of Honda Insurance Solutions — a licensed agency designed to offer customers competitive, convenient coverage as part of the overall ownership experience.
    • Available in all 50 states, the platform provides quotes from top carriers via VIU by HUB, omnichannel insurance brokerage platform backed by one of the largest personal insurance brokers, Hub International
    • Customers can shop for coverage on autos, RVs, motorcycles, and even homes.
    • An OEM parts coverage option helps protect vehicle value by using only Honda and Acura Genuine Parts.
    • Future plans include full integration into Honda and Acura’s digital sales ecosystem.
    • Petar Vucurevic, President of American Honda Insurance Solutions: “Insurance is a key touchpoint in the vehicle ownership journey... promoting safer driving and increased peace of mind.”


  • Walmart is doubling down on its AI transformation with the rollout of Sparky, a next-gen digital shopping agent set to replace traditional search. The move marks the retail giant’s most aggressive bet yet on an AI-first future.
    • Sparky will handle everything from grocery reorders to furnishing entire apartments based on budget and preferences.
    • The new interface will be multimodal—supporting voice, images, and video—to mirror natural human shopping behaviors and eliminate the need for keyword searches.
    • Walmart’s AI framework includes four agents: Sparky (customers), Marty (suppliers/advertisers), an associate agent, and a developer agent.

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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Transcript

Episode Transcript

Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Paul J Daly (00:01):
Good morning, everybody. We made it to Friday,
July 25 This is the automotiveState of the Union. I'm Paul Jay
Daly. It's come out here.
They're talking about EVservice, wells, Honda selling
some insurance and Walmart gojust in the search bar. Goodbye
in their app. Not Yet when theysee me soon, but close. I have a
very real and present story toshare about that one

Kyle Mountsier (00:25):
real and present danger as

Paul J Daly (00:28):
it Wow. My mind got blown this morning by chat GPT,
oh, yeah, that's impressed to dowith this story. I know, I know.
I like it. It's hard to do thesedays when you use a lot,

Kyle Mountsier (00:39):
right? Yeah, where it's like, Oh, you just
came up with the new thing that

Paul J Daly (00:43):
you're feeling exactly right when you used to
anything a lot. Like, I've seenit before me. I'm like, You

Kyle Mountsier (00:48):
know what's interesting? This is a random
I've noticed GPT using lessemojis recently. Like, I wonder
if someone was like, You knowwhat we should dial that?

Paul J Daly (00:59):
What are those lines that they use. What's
that? The HR line breaks? Yeah,can figure that out. Those,

Kyle Mountsier (01:05):
oh, the M dashes, M dash. There's a whole
debate on that right now, likeon the internet, it's like all
these people that are writersand like, have been using them
for years, because actually, how

Paul J Daly (01:18):
move on the cheat, the cheese has gotten moved. The
cheese has moved. You can't usethem. Love the way things get
communicated with an M dash,because it's how I think, right?
It's like, yeah, it's like athought, and then it's kind of a
little tangential thought, yeah,right to the original, yeah, not
as informal as the triple, asthe ellipsis, no, and the
parentheses really doesn't fit.
It's now, I know those poorwriters, ah, it's over, so

(01:42):
frustrated over all right,Nathan's telling us we have to
get it because we're actuallygoing into clubhouse. Wow, we
used to be in clubhouse fivedays a week, and we're going to
David Long's all things, usedcar clubhouse right after this
show, which is in 11 minutesfrom now, which means we have to
be done this show in less than10 minutes because I have to re
download the app. Watch us roll.

(02:03):
Here we go. Watch, watch,actually, should I actually look
at the app store right now? Doyou have the app on your phone?
Did you do? I'm there, you know.
Let me

Kyle Mountsier (02:16):
know. Just talk about EVs. We'll be fine, fam.

Paul J Daly (02:18):
I have to update.
There you go. We're updating, sowe're one step ahead, all right.
Well, electric vehicle, Oh,that. I can relate to this one.
I got a story for this one too.
All these personal issues in mylife today, electric vehicle
sales hit a new high in thefirst half of 2025 but the surge
is putting pressure on servicedepartments, nature nationwide,
according to CDK Global's EVownership study, more EVs are

(02:39):
hitting the service lane, andowners are increasingly
frustrated with the experience.
I can raise my hand there. Q2 EVsales rose nearly 5% over q1
only 28% of EV owners reportedsame day service in 2024 which
is down from 40% in 2023 sothat's almost that's like a 40
drop in the 40 that's good. 85%No, it's

Kyle Mountsier (03:02):
not. Oh no, it's no, the it's the other way. Oh,
they can't get

Paul J Daly (03:05):
only 28% instead of 40% 85% of new EV owners needed
dealership service in year one,often for recalls or minor
repairs. Multiple visits arebecoming common. 34% of non
Tesla owners said service tooklonger than it would have for
gas vehicles with 21% saying ittook four visits or more. Our

(03:25):
friend David Thomas of CDK saidquote, We know dealers are
prepared for EV service, butthese numbers are getting worse.
Is not a good sign, as more nonTesla EVs are on the road than
ever before.

Kyle Mountsier (03:36):
This is what's crazy like. The reality is you
should have less need forservice in year one with any EV,
because you don't have fluids tochange the first year, unless
you're just wearing out your youknow, unless you have

Paul J Daly (03:51):
minor, minor, minor recalls. And entirely, I think,
Well, I think to some of these,that's the scary part, right?
Yeah, I drive, as some peopleknow, enough 2022, f1 50
lightning, and there are justsome little things that have
happened to it because, and Ithink it's because it's like a
newer vehicle, right? Let metell you my service experience
so far at four dealerships hasbeen terrible, looking at you.

(04:13):
So I actually ended up gettingmy my solution fixed, my problem
fixed at an independent dealer.
I paid out of pocket because mybecause I couldn't wait that
long, because it was an actualissue with the thing. It was
making this ridiculous clunkingnoise, and like, there's a bolt,
a torque spec on a bolt waswrong. So like, the whole front
end was, like, it soundedterrible. I went to one Ford
dealership. The service advisorgave me the third degree, first

(04:35):
of all, because they didn't buythe truck there. And then gave
me the fourth degree because Ibought an EV, and apparently all
EVs were junk in his mind. Andthis is the Ford service
advisor. Oh, he's like, I canget you in three weeks. All
right, I'll call the other Forddealership. That Ford dealership
told me that the wait for the f150 lightning, right, was about
four or five weeks, because EVcertified tech, exactly. Even

(04:57):
though the problem had nothing.
Thing to do with the electricalcomponent of vehicle, Yep, yeah,
that's not, I mean, it's aterrible ownership experience.
So I they this problem doesn'tneed to be fixed. And, I mean,
the industry will fix it.

Kyle Mountsier (05:11):
But I mean, and if you buy a Tesla or rivian or
something like that, fat chanceof you getting your vehicle
service anywhere near you,unless you're in a major metro.
I don't know,

Paul J Daly (05:20):
though, because Tesla. No, seriously, maybe
Tesla. Maybe Tesla. I mean, westruggle. Syracuse is in a major
market. We have a big Teslaservice station, and they deploy
service vehicles out of thatstation. So

Kyle Mountsier (05:32):
Syracuse is a fairly major market. Don't try
and go into a rural market,though, like you gotta be in an
urban setting.

Paul J Daly (05:37):
What do they call them? Tesla Rangers? Yeah,
that's, that's prettyappropriate. I wonder if they
have a uniform, yeah, have auniform, yeah, I don't know.
Probably gotta

Kyle Mountsier (05:44):
fix our buddy Ben went three hours to go find
his rivian service. Oh gosh,that

Paul J Daly (05:49):
was on the way home because his battery reading was
wrong. After they start with,yeah, all right,

Kyle Mountsier (05:56):
what a mess. I still love my truck. I'm glad.
Let's

Paul J Daly (06:02):
talk about insurance Honda is taking a big
step into the insurance spacewith the launch of Honda
insurance solutions, a licensedagency designed to offer
customers competitive,convenient coverage as part of
their overall ownershipexperience, available now in all
50 states. The Platform providesquotes from top carriers like
Viu hub, Omni channel, insurancebrokerage platform, basically,

(06:24):
they're backed by one of thelargest personal insurance
brokers. Customers can shop forcoverage on their cars, RVs,
motorcycles, even their home.
It's also going all in on theinsurance thing. An OEM parts
coverage option helps protectthe vehicle by using only Honda
incura, genuine parts futureplans include full integration
into Honda inaccuracy digitalsales ecosystem, so buy it all
at once, right? Peter vukovarik,president of America, Honda

(06:47):
insurance solutions says, quote,insurance is a key touch point
in the vehicle ownershipjourney, promoting safer driving
and increased peace of mind. Itmakes sense to bring it all
together if they

Kyle Mountsier (06:59):
can. Yeah. I mean, the you know, this is one
of those like, Okay, we're gonnago find some money somewhere
else. And absolutely, can makethis white label solution of
another broker. And so, youknow, my question is always
like, are customers actuallygoing to interact with this? You
know, I just bought a Toyota.
Same thing. I get an email. SoToyota has something very
similar, where they wherethey're reselling insurance, you

(07:20):
know? So multiple manufacturershave been doing this. The
question is, is whether there'sadoption ready enough for it.
The the one that's reallyinteresting to me is, like, full
integration into the digitalsales ecosystem. That's it.
That's, I mean, if

Paul J Daly (07:36):
you could sell this at the F ideal, if you sell the
F and I desk, here's yourpayment, here's your payment,
including insurance.

Kyle Mountsier (07:42):
Oh, yeah, and there's already dealers doing
this. I mean, it makes, it makesso much sense. It does. You
know, as long as you can, like,provide some Fe F and I, you
know,

Paul J Daly (07:50):
Chris chiming in the live stream, OEM needs to be
in the insurance business whenthey launch full autonomous
driving vehicles. That's thetruth, for sure. It'll be much
more streamlined and much betterfor consumers. Speaking of more
streamlined stuff, oh, segway,we're doing

Kyle Mountsier (08:04):
good. We got three minutes. Walmart is
doubling down on its AItransformation with a roll out
of Sparky, a next not a dog, uh,a next gen digital shopping
agent set to replace traditionalsearch. The move marks the
retail giant's most aggressivebet yet on the AI first future
Sparky will handle everythingfrom grocery reorders to

(08:27):
furnishing entire apartmentsbased on budget and preferences.
The new interface will bemultimodal, supporting force
images and video to try andmirror natural human shopping
behaviors and eliminate the needfor keyword searches. Walmart's
AI framework includes fouragents. Actually, there's
sparkly, that's the consumerfacing model Marty, which is for

(08:47):
suppliers and advertisers, anassociate agent and a developer
agent. The CTO Harry Vasudevsaid we expect that the search
bar will be replaced by thismultimodal interface in Sparky,
I

Paul J Daly (09:00):
need to have a conversation with the brand
marketing messaging team on thisone. How are you going to have
Sparky, which is like the littlestar in the Walmart Marty, and
you're not going to have Wally?
How is that even possible?
Wally? Marty is Sparky. It'slike, that's our logo. That's it
is. That's a big miss. But Ithink this is a very this should

(09:21):
be a shot across the bow foranybody who thinks about search
based intent, and we've beenhaving this conversation this
morning, uh, chat. GPT agentmode is now available to
everyone with a teams. So Itried it for the first time, and
I need to get my driveway sealcoded. So I was like, perfect. I
was like, find me reputable sealcoders in the Syracuse market,
and give me three options basedon reviews and what you you know

(09:43):
how well they can do the job. Itgave me three I said, go and
fill out contact forms. And ittook forever, by the way, but,
oh, it takes I video it everybut it filled out the first
contact form. No problem. Thesecond one, the website's
architecture. It actually toldme why the website architecture
would. Not letting it do it. Itwouldn't let it copy paste, and
then it said, Let me type itmanually. And then it wouldn't

(10:05):
work. And then it wouldn't work.
I was like, skip it. Go to thenext one. The next one didn't
have a clearly identifiable formon the site. And it says, Would
you like me to try to call themor send them an email? It could
have done that. But I was like,done. So the first site, it's
like, oh, well, that site wassuper friendly. It was done in
like, a minute. And so this,this like, when agents are doing
the work for you, the whole gameis about to change. You

Kyle Mountsier (10:25):
know? What's crazy? The hardest thing an
agent has to do is find its wayto an iframed modal in a website
that isn't native to the site'scontent architecture.

Paul J Daly (10:38):
You know? One other thing, it says, Watch out
automotive. I was like, Ithought about, like, what it
would be like if we had searchedfor a car, and immediately my
mom was like, this, it's gonnabe a total disaster. Especially

Kyle Mountsier (10:49):
I know someone that tried it yesterday, and
they were like, don't even letit, don't even let

Paul J Daly (10:53):
it try and worthless. It's literally
worthless. The one thing it saidis that the site uses dynamic
structuring, which is making itdifficult for me to navigate the
site. Wow. I know. Sointeresting. I know. Well, there
you go. It's coming. So youdidn't hear it first listen.
We're on our way over to DavidLong's all things, used cars,
clubhouse room. Come over toclubhouse and join us. If you're

(11:13):
on the live stream. We'llcontinue the conversation there.
Until then, it's Friday. Makesure you get ready for this
weekend. Get everybody ready.
Get the people ready. We'll seeyou tomorrow. You
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