Episode Transcript
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Paul J Daly (00:00):
Good morning. It's
July 24 it's Thursday. This is
the automotive State of theUnion. I'm Paul Jay Daly Scott
mount today we're talking thatold stop start button. Tesla in
the rough again. And a littlefollow up on a Southwest Airline
story. We've been tracking forthe last several months. We've
been tracking it. We're gonnafly
Kyle Mountsier (00:22):
it all the
things I don't know.
Paul J Daly (00:25):
Yeah, I don't know.
I
Kyle Mountsier (00:26):
was a list for a
while, but I quit that. You
quit? Yeah, you're a
Paul J Daly (00:30):
Delta boy. Now I'm
Delta all the way Delta, way
Delta. Die made that Wi Fi.
Kyle Mountsier (00:35):
You know what I
mean. I do.
Paul J Daly (00:36):
I do. We have an
upcoming ASOTU Edge webinar with
car, RX, driving loyalty, withdata, with Shane Wilson and
Levi, uh, Beatty. Is it? Yes, onWednesday, August 6, so next
week? Oh no, is that two weeks?
Two weeks, two weeks fromyesterday, you got time to
Kyle Mountsier (00:51):
Oh, but register
now so you don't forget, you
know, yeah, oh yeah.
Paul J Daly (00:54):
I want to be
reminded. It's like, it's like,
a little time capsule. Registernow and then. Two weeks from
now, you'll be like, Oh yeah,that's
Unknown (01:00):
right. That's a good
one, great reason to register.
Paul J Daly (01:02):
Now go to
asotu.com, it'll be right there
toward the top of the page. Youknow how webinar registration
work, but these are our quickones. 2530 minutes. You're in,
you're out, you get therecording if you can't make it
live, but if you can make itlive, it's always fun to be in
the comments. Yep, yep. I'msaying, All right, let's talk
about some news. Oh, this onejust hits real close to home for
most drivers, the start stopengine system. You know the fact
(01:24):
that your car dies in the middleof like when you're about to
cross an intersection and itjust shuts off and then turns
back on once was like a big abig thing about fuel savings,
often slandered by customers,now catching flack from both the
EPA and frustrated drivers,prompting new questions about
the feature's future, 62% of2023 vehicles used the stop
(01:44):
start tech to claim an EPAefficiency credit, about $30 per
vehicle. That adds up to a newTrump era law, which would
eliminate the CAFE standards andkey penalties, is reducing the
incentive for automakers toinclude the feature, especially
when them get they're gettinghate mail about it. I'm sure
consumers often disable thefeatures, citing annoyance and
where concerns, even though it'skind of been shown that, like,
(02:07):
it doesn't actually wear yourstarter out, even though, like
old starters, it would have notthe new ones, but people are
buying aftermarket disablersfrom like Amazon with, like,
wiring harnesses. They hate itso much they're willing to pay
money to make it's
Kyle Mountsier (02:19):
jarring. Let's
just be honest, it's jarring.
Paul J Daly (02:23):
Okay, so here's a
quote from Chris Harto, senior
policy analyst at ConsumerReports. He said, If there is no
Cafe program that can beenforced, and there's not a
greenhouse gas standard thatrequires improvement, that would
remove the incentive forautomakers to put this in the
tech. Lee Zeldin, the head ofthe EPA, recently tweeted, start
stop technology where your cardies at every red light. So
companies get a climateparticipation trophy. EPA
(02:45):
approved it, and everyone hatesit, so we're fixing it.
Kyle Mountsier (02:49):
And he dropped
the mic right after that, too,
all at the same time, just like,walked off the stage, just full
on arm extended Mic drop. I haveyou driven a car like this? Have
you driven like Yeah,
Paul J Daly (03:00):
I think, I think
the No, I think most cars have
it. I think the last, the last,like, four cars I've owned,
like, my Kia had it. I had aDurango was the first car I ever
had that had it. You know, GMvehicle has it. Like, yes, all
the cars have it. I'll tell youwhat so annoying. The navigator,
we had had it. I'll tell youwhat. It really does depend.
They're not all the same, right?
I will say the Durango was theroughest one we had, because I'm
(03:24):
like, is this thing shiftingright? The navigator wasn't bad,
like, it didn't annoy but, youknow, the thing is, some of the
cars you're able to turn it offright, like, turn it off off,
but most of the cars now Itdefaults to on when you turn the
car back on.
Kyle Mountsier (03:40):
What's so funny,
there is, like, you can turn
this off, but the automaker isstill getting the efficiency
credit,
Paul J Daly (03:46):
yeah, but it goes
back on. They do say, like, the
the data shows that, like, itcan save up to 10% of fuel in
stop, start, city traffic. Okay,so, I mean, it's probably like a
Kyle Mountsier (04:01):
percent. Maybe
that's nifty. You can tell I got
opinions about it. There's
Paul J Daly (04:05):
nothing like
feeling like you like, hit the
gas and it delays when you needto hit the gas. And, yeah, I
hate the feature. I mean, Iguess if it's an option to turn
it on and but, like, abouthybrids and EVs? My EV never
does that. It's like, it'salways all the power and always
on. I told I towed a boat withit yesterday again. And let me
just say, you got there's it isamazing. It is so amazing to tow
(04:29):
it, that thing well, because allthe torque, because torque is
what you need, and breaking iseasy. It's easy to solve
nothing. Oh yeah, the fact that,like, you take your foot off the
gas and like, and the feelingthat that big, heavy thing back
there is actually charging myvehicle. Yeah, it's good.
Kyle Mountsier (04:43):
Yeah, that thing
back there is recharging well,
but it doesn't, you know, it'skind of low on the flip
Paul J Daly (04:49):
side. And like I
did all the I put all like that,
the stats and you load a trailerup, give me the way, give me the
dimensions, range calculation,yeah, pretty much cuts it in
half.
Kyle Mountsier (04:58):
You're like, all
that charging. Does nothing,
quite
Paul J Daly (05:02):
hilly area. So like
the trek to put the boat in the
lake, even though it's onlylike, you know, 10 miles,
there's a lot of hills. Andbasically it's like a mile per
percent is what it Oh, mygoodness, that's unbelievable.
So take that with a grain ofsalt. No, no. Long trips, no
longer. Fine. Speaking of longtrips, Tesla's had a long trip.
Tesla feels like they're on theroad trip that'll never stumble.
(05:26):
Their q2 earnings took a hit,with profits and sales both
sliding amid fading incentivesslowing. Ed EV demand and
political headwinds. Elon Musksaying the future rides on
autonomy, their net income fell16% to 1.1 7 billion auto
revenue dropped 16% asdeliveries declined there.
There, they had $439 million inregulatory credit sales, meaning
(05:50):
they're selling theirenvironmental credits to other
automakers. That was half ofwhat it was last year, shrinking
fast. They say, take this with athe Elon sized grain of salt, a
lower price model Y and astripped down cyber truck are
aiming to revive sales. We'llsee. We'll see Tesla's invite
only Robo taxi service in Austinmay expand to half of the US
(06:12):
population by the year's end, ifapprovals move forward,
according to musk, that soundslike a long way to go from where
they are now.
Kyle Mountsier (06:20):
Yeah, have you
ever seen government move that
fast?
Paul J Daly (06:24):
No, he said, he
said, quote, he goes, we
probably could have a few roughquarters. I'm not saying we
will, but we could.
Kyle Mountsier (06:32):
So, yeah, this
is actually, you know, if you
look at like the growth of Appleover time, and then Android kind
of catching up and leapfroggingthem in some of the technology
that they have. And, likeputting everyone at a little bit
of a question mark, there's somesimilarities here, especially
globally, maybe not so much inthe US, from an EV manufacturer
(06:53):
perspective, and and obviouslywe know the political tension,
some of that's getting resolvednow, you know, I think the, you
know, the over promise, underdeliver, is starting to weigh on
some investors, but I think thatElon is just so much of a he's
just so much in pursuit of thesecrazy ideas with that when they
(07:14):
do happen, they'll be kind ofearth shattering. And you know,
the thing about the differencebetween, like, a Waymo mapping a
city and Tesla mapping a city isthey've been they've been
collecting data on these citiesfor 12 plus years now. Great
point. So like, the the abilityfor them to map and understand a
city and the travel patterns ofthat city is like, it's an
(07:37):
instant. So the minute they getaccess to these cities, it's not
going to be like, oh, we need togo in and map this thing with
our technology teams. They'regoing to be like, pull up data
set for Nashville.
Paul J Daly (07:46):
That is insane.
When you think about the levelof data, the amount of data
they're collecting on a dailybasis. They are just ingesting
hour after hour after hour ofvideo, real life, real world,
squirrely pedestrian data, yeah,it's,
Kyle Mountsier (08:02):
it's not just
the roads, it's the patterns.
It's like, how does this moveduring this time of day, and
where, you know, where do peoplecross in front of things like
they, they can analyze all
Paul J Daly (08:10):
of that. That's
gotta be wild. What a wild data
set. Yeah. Speaking of wild
Unknown (08:15):
segway,
Paul J Daly (08:18):
big changes about
to be
Kyle Mountsier (08:19):
here next week,
Southwest air, by airlines, is
finally putting the stamp onsaying goodbye to open seating
for the first time in itshistory, they launched assigned
seats in a tiered boardingsystem starting in January for a
couple flights. Right? I thinkit was like California to
Baltimore or something likethat. Assigned seat ticket sales
begin July, 29 with full outroll outs early next year, eight
(08:43):
new boarding groups, replace a,b and c lines, priority,
prioritizing loyalty and fairclass. So they basically doing
the eight, eight boardinggroups, eight boarding groups. I
mean, that's, that's what likeUnited has eight boarding
groups, premium seat options.
They really do extra leg roomare coming, but prices are still
under wraps. About 25% of thefleet is already reconfigured
(09:04):
with the new seat layout. That'spretty impressive southwest.
Stephanie Schaefer Modi saidwe're optimizing for efficiency
while taking care of our mostloyal customers. All
Paul J Daly (09:16):
right, we'll see
what happens. Because you know,
our head of our production team,the owner of the company that we
work with to produce our Docuseries called southwest the
public transportation of theskies, because that's what it
feels like, until that right?
Like you go on and you sit, yousit next to like the least weird
person, right? Which is, whichis like city bus rules, it is
the least word. How can I You'rescoping it all out myself from a
(09:39):
potentially weird experiencethat's going away. I think this
is just a story of a company whohas to reinvent itself and knows
it so they're taking a drasticmeasure. I guess it just shows
the evolution of a company overtime. But it's not like a I
mean, how old southwest, it'spretty old. It's older company,
50 years old, right?
Unfortunately, I'm always alittle bitter. Year, because
(10:00):
when you know you and I firststarted rolling together, you
know, five years ago, whateveryou just talked about Southwest,
like, so highly, and by the timewe came to Syracuse, it was
ruined and terrible. So I neverreally got the Southwest
experience.
Kyle Mountsier (10:11):
Well, it used to
be like, I mean, literally, it
was 10 minutes less boardingtime, right? Because it's just
like the process is so muchdifferent from a boarding
perspective. And like, how thegroups have to get up, like, you
just line up, you're in, you getyour seat, you know, there's no,
like, jockeying for, you know,for, for where you stop. It's
(10:32):
just so much smoother and and,you know, I think they've just
the problem. The biggestproblem, in my perspective, is
their pricing is at or higherthan the other airlines, where
you get to pick your seat, andthat's the biggest problem that
they've run into. And so, yeah,it's not a discount airline
themselves, exactly.
Paul J Daly (10:50):
All right. Well,
we'll see what happens a lot of
travelers out there, a lot oftravelers in our audience,
that's for sure. So lots oftravel if you book a seat, if
you book a seat, like anassigned scene on a Southwest
flight. Send us a screenshot,and we're going to throw them on
social media. Do that? Send it?
Yes. Oh, it's full stop. Fullstop. I think we need some outro
music. You have an amazing dayout there, serving people,
(11:13):
selling some stuff, becausethat, all that, that combo right
there, goes together really,really well. We believe in it.
We believe in you, we'll see youtomorrow. You.