It’s a fresh week and we’re talking about the UAW’s landmark unionization victory at Volkswagen's Chattanooga plant. We also cover Dealer response and legal threats over new sales models from Scout and Sony Honda Mobility as well as Tesla's swift response to a safety recall with a riveting fix.
In a historic win for the UAW, employees at Volkswagen's Chattanooga plant in Tennessee voted decisively to unionize, marking the UAW's first significant success in the South.
After two prior attempts, the UAW succeeded with 2,628 votes for and 985 against, setting a new course for worker representation in Southern automotive plants.
This victory at Chattanooga, previously the only VW plant globally without union representation, may signal a broader shift in the U.S. auto industry.
UAW President Shawn Fain celebrated the win, noting its potential to catalyze further unionization across the region: "Once you see the first domino fall, you're going to see a lot more follow."
As Scout and Sony Honda Mobility venture into the U.S. market with plans to potentially bypass traditional dealership networks, dealer associations are gearing up for a possible legal confrontation.
State dealer associations are advocating for Scout and Sony Honda Mobility to adhere to the traditional franchised dealer model, citing legal and regulatory concerns with direct sales models
The dealer groups have voiced their readiness to challenge these plans legally, emphasizing the advantages of the franchise model in a nationwide advertising campaign which included taking out a full page ad in Automotive News
Geoffrey Pohanka, hinted that the absence of a clear commitment to using dealerships might suggest a move towards direct sales, stating, "Silence speaks."
John Devlin, the 2024 chairman and CEO of the Pennsylvania Automotive Association, expressed strong sentiments about the situation: "After two years of asking and getting nothing, frustration is very high." He also added, "We think this is going down the wrong road. I hope that there's good news at the end of this, but we wanted to proactively get out ahead of it."
Tesla has responded swiftly to a significant safety concern with the Cybertruck's accelerator pedal by introducing a rivet-based solution to prevent the pedal pad from slipping off.
Tesla temporarily stopped Cybertruck deliveries and issued a recall after discovering that the pedal pad could detach and become lodged, causing the vehicle to accelerate uncontrollably.
The repair involves a fast but precise procedure where Tesla technicians drill a hole and install a rivet to secure the pedal pad, ensuring it stays in place.
Total materials, less than $1. Total time, less than 1 minute.
The fix, demonstrated at Tesla's "Cyber Takeover" event in California, is touted as a quick "35-second recall fix," though initial setup involves critical measurements and checks.
All right, here we go. It is April 22. It's Monday. We have a lot of work to do a lot of things to talk about, you know, unions, new unions, dealers pushing back and a one minute cybertruck fix or less.
Kyle Mountsier:
Or maybe less than what did he say dealers pushing back?
Paul J Daly:
I did. It just felt like I need to repeat. I wanted to hit that one this morning.
Kyle Mountsier:
I'm so proud of that. Right. Yeah. I mean, if you haven't been around, a lot of people that don't know that, that like where that comes from.
Paul J Daly:
I know. I know. That was so when, what right before COVID hit, I had the last trip I took. I don't know if you I told you the story. The last trip I took before COVID was actually to Nashville. No way. It was actually to Nashville. It was only a second time I'd ever been in Nashville. It was to go be with Donald Miller, the New York Times best seller story brand creator in person. For like a mission statement workshop. He just developed this thing. So I was in the first class. So we got sitting room with him all day. And it was talking about how to write the mission and the compelling thing and get it and you know, it's like learning about that a little bit more. And when a soldier started, I use that framework to write the initial like meaning behind what a Sony was. And that's where dealers pushing back came from. How about we never again, the fact that it was in Nashville, I was right down the street. I was downtown. It was I know, right? Where you probably were. Yeah, I know. So I mean, what we're excited about is like now here we are almost four years after that point. Wow, we're all getting together in Baltimore, May 15 16th. For a soda con, which is just the evolution of that initial thing coming all the way full circle and now we're going to have hundreds of dealers and industry partners in one place. pushing back against the things that want to make the the stigmas that want to take the industry down the operational challenges that want to put dealers under the things that are cutting into profits are things that are making dealerships a bad place to work, we're pushing back against all that together to make it a better place. So we hope you join us over 90 speakers over three days. In an amazing amazing venue. We got we're getting all the merch all the swag shipments and let me just say, when a soda gives away swag, we don't mess around. It's not like a little printed squishy ball. We got custom custom attire. Oh, yeah, great soccer scarves, we have jewelry it's going to be unbelievable. It truly is.
Kyle Mountsier:
Hey, this is this is interesting. So I was talking to a buddy at church this weekend and he works for Nissan and works with dealers actually in the Nashville and like greater Nashville like 150 miles out from the area and he said one of the things that he's running into in the specific work that he does is this like quickening pace of General Manager manager even people like salespeople turnover in the industry because of like margin compression and dealer principals trying to fix and find a way and we have a couple of sessions uniquely dedicated to writing the retention and writing the the employee management within the dealership and I'm guessing it's going to take a trend on that topic line. Because if someone at the OEM is feeling that I guarantee it's being felt in
Paul J Daly:
right by the time it makes its way to them. Yep, right you know, it's gone through several days and filter so go to ASOTU con.com check it all out, get your tickets fast. We may we keep begging the hotel hotel to give us more rooms and they give us like one or two at a time. So there may or may not be hotel but we sold out over 200 rooms at this hotel already. So maybe there is thanks to our friends at Reynolds and goober Gu for being the presenting sponsor helping us make it happen. We're also going to be featuring the effective podcast stage we've had a Soto concessions every year this is our third year live podcast stage it's an amazing experience and our friends at effective have been a partner all three years yeah like that so much here when they came back for year two so much year two they came back for year three
Kyle Mountsier:
and so it's even better you know we all will level it up always gotta
Paul J Daly:
do the same thing. Hey, want to say hey to Doug class and just shout it out. So I love it. Happy Monday a soda nation feels happy Monday. We should start the show that way on Mondays. Happy Monday. nation but we got to get Michael
Kyle Mountsier:
Cirillo to read it. Yeah, of
Paul J Daly:
course to do is he's got he's the voice of audit. motive. All right, let's get it. Let's go. All right in a historic win for the UAW employees at Volkswagen Chattanooga plant in Tennessee voted decisively to unionize marking the UAW is first significant success in the south. So after two prior attempts in previous years, they succeeded listen to this vote count 26 2628 votes for an only 985 against setting a new course for worker representation in the southern states of victory Chattanooga previously was the only VW plant globally without union representation. But this may signal a broader shift in the US industry, UAW president Shawn fain celebrated the win noting its potential to catalyze further unionization across the region. He said quote, once you see the first domino fall, you're going to see a lot more follow. He then emphasize the importance of swiftly moving from the election victory to securing a contract, of course is what they do. And he said, quote, we're going to push immediately to get a first contract.
Kyle Mountsier:
When I first saw this story. I hadn't read the story or seeing the Shawn Fein quote and like, in my mind's eye, I saw this row of dominoes. It was like the first you know how sometimes you read something and you just see something in your eyes that's what I saw. And I think it's like it's there's like a wonderful and scary version of those dominoes falling. You know, the good for that unions do for workers, but also the scary thing of what that means for us manufacturing potentially, and some of like, even the concerns of the political landscape in the south and how they feel about unions that was presented late last week in some statements from some governors. It's going to be interesting how that balance of power is played within within like, just the culture of the South, right. Because you know, like he's going after every other spot now I'm sure going to Huntsville gonna go to Hyundai gonna go right into, you know, Alabama and Mississippi, Atlanta a lot or Georgia, a lot of these places that have never seen unionized work in the South. Going to be Yeah. Why summer? Yeah, actually, we were missing last week. We're like, man, sometimes the news is a little light. back in. Back in those UAW days when we had something to talk about every day and we shot
Paul J Daly:
a vein Thank you. Minnesota. Concha will put you on the stage. I don't think he's coming. But open invite if you want to come to Oh, man. Oh, I had a speaking of Yeah, and I lost it. Oh, we got we got to sideways. But I'll tell you what, last last note on this, UAW they need to land a good contract in order to convince the other people to unionize. That is true, right? Like, if they land a good contract, it's gonna be so much easier for like, hey, look, these we stay signed on with this. All of a sudden we got them this so we'll see how that goes. Be without seeing how it will go. We just needed to say, let's just be honest, be honest. All right. So as a automaker scout and Sony Sony Honda mobility venture into the US market with plans to potentially bypass traditional dealership networks, dealer associations are gearing up for a possible legal confrontation. So state dealer associations advocating for scout and Sony Honda mobility to adhere to traditional franchised dealer model. They're citing legal and regulatory concerns with the direct sales model. So many dealer groups through associations have voiced their readiness to challenge the plans legally emphasizing the advantages of the franchise model, including this campaign includes taking out a full page ad in automotive news, Jeffrey Pohanka. You know who he is he hinted that the absence of a clear commitment by the companies using debt to use dealerships might suggest a move toward direct sales stating, quote, silence speaks. John Devlin, who by the way is going to be at his third asoto con is the 2020 Ford chairman and CEO of the Pennsylvania auto Association, expressed strong sentiments about the situation saying, quote, after two years of asking and getting nothing, frustration is very high. He continued, we think this is going down the wrong road. I hope that there's good news at the end of this, but we want to proactively get ahead of it. There you go. Dealer associations, pushing back.
Kyle Mountsier:
I like here's the here's, I'm, I'm going to tell you the full page ad and if anybody is listening to this, that has an impact on this, the very top of the page says a scout, the middle of the page says silent speak, Speaks and on the bottom of the page, you put the list of the dealer associations. That's it. It's just a blank page with white letters. Yeah, call yours. All right.
Paul J Daly:
You heard it here first, folks. You heard it here. We're gonna have a lot of you know, this is great because in a couple of weeks, we'll be with a lot of dealer Association. presidents, there'll be the
Kyle Mountsier:
ones that are probably going to be the most interested in having this conversation you got, you have John Devlin, you have Don Hall, you have Peter Kitzmiller all from around the DC area in those states that are most close to the issue, as well as Mike Stanton himself all on stage at the same time, so I think you're moderating that panel. Even better come out,
Paul J Daly:
it absolutely is gonna happen. So yeah, again, real time at a soda con. Did we mentioned you should be there, all these people are gonna be there. I really want to segue into this one. Yeah, because it's so good. But go ahead. Just roll this into it.
Kyle Mountsier:
Yeah, like speaking of people that won't be there, something I don't know. Just give it a half one. Tesla's probably not doing some cyber truck demonstrations at ASOTU. CON, they have responded quite swiftly to a significant safety concern brought up last week with tribal cyber trucks accelerator pedal by introducing a rivet based solution to prevent the pedal pad from slipping off. So they temporarily last week stopped cybertruck deliveries issued a recall after delivering the pedal pad that could detach and become lodged, the repair, we'll watch it in a second but the repair basically involves a procedure that is has like a little bit of measurement involved placing the accelerator pedal in exactly the right spot. And then a materials cost of a buck or less than a buck and a total time to actually fix and put the rivet in place to secure the thing for less than a buck. And this is you can check it out. They they demonstrated this at cybers the cyber takeover event in California last week, but you see them like basically put on this block. drill through the accelerator pedal and the plate behind and then take a little riveter and you know, it's probably
Paul J Daly:
like an like, I don't know, like an eighth inch hole. Yeah, they use a little jig to drill through and just a handheld riveting gun with a little battery pack on it. Dude snaps the rivet in and it's done.
Kyle Mountsier:
I think it's an easy it's an it's an easy riveting Riveter. You know, you can
Paul J Daly:
literally fit everything you need to do that in a purse.
Kyle Mountsier:
Yeah. Easily. Like yeah, I mean. So it's interesting because like the, you know, just the ability to fix it really quick is pretty incredible and for them to kind of come with the fix within a week. But there was a ton of flack online on if you read the Twitter thread of like, after all of this cleanliness and I get like a customer facing rivet hole at the bottom of my like, it is perfectly clean. You see the dash that like the seamless everything and then
Paul J Daly:
that's a good point better make sure that's hole is centered and straight because that drives me nuts. I mean, you really kind of can see it can't see it. That is really funny and a better being aluminum rivet. Yeah. What are you gonna do? It's better than glue. And it can be done anywhere that customer is.
Kyle Mountsier:
That's, that's the, you know what, that is actually the trick. Like
Paul J Daly:
how they're gonna get out to all these. I mean, there's what 3000 3003 400 effective? Yeah, is what they say. Exactly. So I don't know how I mean, one minute times 3400
Kyle Mountsier:
I bet a bunch more at Tesla cyber takeover event just because that's where all the cybertruck
Paul J Daly:
Yeah, they just held the event just so they could do the recall site. Check this out, guys. I know. They got it done. They got it done. I don't know what else we talking about. I think that's it. I think everybody's got work to do for it. Because it's Monday, the 22nd if eight days, eight days, nine days left in this month, a lot of things sell or serve some people will see here tomorrow get your tickets to a soda con