The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier
The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier is a regular weekday show where progressive Automotive Dealers and industry partners aren’t afraid to make some trouble by pushing back on many popular, but failing, beliefs that persist in the Retail Automotive Industry. Beliefs that are degrading both the customer experience and the future of retail Auto Dealers. Paul and Kyle give their fresh take on industry news, technology, culture, and retail while trying not to have too much fun. // The Automotive Troublemaker is produced by Automotive State of the Union (ASOTU). Learn more at https://www.asotu.com
The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier
Affordability Drives Sub-$20K Segment, AI EV Battery Checks, Shrinkflation Survey
It’s a wheels up Wednesday as we’re celebrating with Carter Myers Automotive at their 100th Anniversary Gala. We also dive into the rise of affordable new vehicles, AI’s game-changing role in EV battery safety, and the growing frustration of U.S. shoppers facing shrinkflation.
Show Notes with links:
- New data suggests lower-priced vehicles are surging in popularity despite the average price of new cars remaining high. Buyers are acting fast before affordable models disappear, with notable increases in sub-$20,000 cars.
- Kia Forte sales rose by 6%, Nissan Versa by 64%, and Mitsubishi Mirage by an incredible 114%, even though the Mirage is set to be discontinued.
- Vehicles priced between $20,000 and $30,000 saw nearly 44% growth in sales during Q3.
- Meanwhile, luxury cars priced at $100,000 or more saw a sharp decline, with sales plummeting 46% in the past 9 months.
- Kevin Roberts from CarGurus says consumers are becoming more cautious due to economic uncertainty, high interest rates, and elevated vehicle prices.
- Technology firms are racing to tackle EV battery defects with the help of artificial intelligence. AI models are dramatically speeding up quality checks, helping identify potential issues before they lead to costly or dangerous outcomes.
- UnitX’s AI tools scan cells in 3.5 seconds, compared to 5 minutes for human operators, allowing labor to be reassigned.
- Richard Ahlfeld of Monolith says AI can halve battery testing time, while Nio Europe is leveraging AI to accelerate battery development.
- SES AI is using AI models to map new molecules, potentially revolutionizing material discovery for future EV batteries.
- Patrick Hertzke of McKinsey notes that improving battery chemistry, like pharmaceuticals, takes time but holds tremendous potential for the future.
- A new LendingTree study reveals just how widespread shrinkflation is in the U.S., with many products shrinking in size while prices stay the same—or even rise—leaving consumers to pay more for less.
- 31% of the 98 supermarket products studied have shrunk over the last four years.
- Paper products like toilet paper were the most affected, with 60% shrinking since 2019.
- Charmin Ultra Strong rolls shrank by 15.4%, while prices per 100 sheets increased by 31.4%.
- Breakfast cereals and candy have also been impacted, with Reese’s shrinking by 11% and its price skyrocketing by 68.2%.
- Matt Schulz of LendingTree notes "Shrinkflation adds insult to injury for already frustrated consumers."
Hosts: Paul J Daly and Kyle Mountsier
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