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
GM Shuts Down Cruise, Dealer Sentiment Up, Meet Willow, the Fastest Computer
With only 3 Thursdays left in the year, we’re covering how General Motors has shut down its robotaxi division. Plus, dealer sentiment is up now that we’re past the election, and Google has announced a potentially massive breakthrough in quantum computing.
- General Motors (GM) has decided to shut down its Cruise robotaxi division after years of significant investment and high hopes. Once considered a $50 billion revenue opportunity by 2030, the move signals a shift in GM's strategic focus.
- GM shares briefly rose following the announcement, reflecting investor relief over reducing the estimated $10 billion spent on Cruise’s development.
- Cruise employees were notified via Slack, linking to a press release titled “GM to refocus autonomous driving development on personal vehicles,” sparking frustration among the workforce
- GM plans to integrate some Cruise talent into its driver-assistance technology programs while doubling down on gasoline-powered trucks and SUVs, which remain its profit drivers.
- CEO Mary Barra defended the decision, stating: “We looked at the amount of money to deploy a robotaxi business and to maintain that business… it’s quite a bit of capital. A robotaxi business is not GM’s core business.”
- GM shares briefly rose following the announcement, reflecting investor relief over reducing the estimated $10 billion spent on Cruise’s development.
- The latest Q4 2024 Cox Automotive Dealer Sentiment Index (CADSI) brings a wave of optimism among U.S. auto dealers, reflecting improving confidence in the industry despite lingering challenges in the current market.
- The market outlook index rose to 54, a substantial leap from 42 in Q3, marking the largest quarterly surge in CADSI history. Dealers credit political clarity and potential economic measures like tax rebates for the boost.
- Franchised dealers are more optimistic (index 50) compared to independent used-only dealers (index 39).
- The top concerns for dealers in Q4 2024 are economic conditions (56%), high interest rates (52%), weak market conditions (37%), the political climate (35%), and rising expenses (33%).
- “The recent resolution of political uncertainty...has cleared the path for a more optimistic outlook on future auto market conditions,” said Jonathan Smoke, chief economist at Cox Automotive.
- Google has unveiled Willow, its latest quantum computing chip, claiming a monumental breakthrough in error correction and computation speed. However, experts remain cautious, pointing out that quantum computing still lacks practical, real-world applications.
- Willow can solve a problem in 5 minutes that would take today’s supercomputers 10 septillion years—far beyond the universe's age.
- Willow reduces errors exponentially as qubits (units of information in quantum computing, capable of existing as 0, 1, or a superposition of both simultaneously) scale, cracking a 30-year challenge in quantum error correction.
- Experts agree it’s an exciting milestone but emphasize the need for a “Cha
Hosts: Paul J Daly and Kyle Mountsier
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