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Automotive State of The Union
Paul J Daly and Kyle Mountsier don’t just read headlines, they make the most important connections across car dealerships, general retail, tech, and culture. The goal? To help automotive leaders think clearer and move faster in a world that refuses to slow down.
Whether you’re running a rooftop, building a brand, or just trying to keep up with everything shifting in the business of selling cars, this is your regular stop for a shot of news, insight, and a little bit of chaos…always rooted in people-first thinking.
From the showroom to Silicon Valley.
From Wall Street to Main Street.
Paul and Kyle connect the dots, keep it real, and make it make sense.
Learn more at https://www.asotu.com
Automotive State of The Union
Lithia Ready For Tariffs, Carvana Expand Recon Ops, Chipotle Forced Smiles
Episode #1027: Lithia leans into affordability while breaking records despite tariffs. Carvana boosts its reconditioning game in Colorado. And Chipotle turns up the charm, teaching 3,800 teams to smile their way to better hospitality.
Show Notes with links:
- While tariffs loom over the auto industry, Lithia Motors is leaning into its diversified strategy and breaking financial records. CEO Bryan DeBoer says the dealership giant is uniquely positioned to ride out the storm.
- Roughly 45% of Lithia’s inventory isn’t impacted by current tariffs, providing a significant buffer.
- The company posted a record $9.2 billion in Q1 revenue (up 7.2%) and $211.2 million in net income (up 28%).
- Lithia’s emphasis on affordability, including older used vehicles, has strengthened its market position.
- With parts prices rising, DeBoer stressed the importance of matching pricing with competitors like Jiffy Lube and AutoZone, while offering both OEM and aftermarket parts.
- “With tariffs, we sit quite nicely,” said DeBoer, calling Lithia “probably the most diversified and least impacted” of the major retailers.
- Carvana is expanding its operational footprint in a big way, bringing inspection and reconditioning (IRC) services to its Colorado Springs ADESA auction site—marking its eighth national Megasite.
- The new Megasite in Fountain, CO spans 50 acres. It supports both retail recon and wholesale auction needs and will create 100 new jobs.
- With added IRC capacity, Carvana can offer more inventory and speed up delivery times for local buyers.
- This move enhances Carvana’s recon and fulfillment network, bringing vehicles to market more efficiently.
- “This integration will bring a wider selection of vehicles with quick shipping times to local retail customers, and provide a more robust offering for local wholesale customers,” said Brian Boyd, SVP of Inventory.
- A customer study revealed Chipotle lacked friendliness and cleanliness, especially during peak hours so CEO Scott Boatwright has announced a new hospitality push including smiling staff, cleaner dining areas, and better on-site issue recovery.
- Every employee is now coached to greet customers with a smile at the tortilla station and end transactions with a heartfelt thank you, reinforcing a culture of warmth without slowing operations.
- Staff across all 3,800+ restaurants have been trained on “exceptional hospitality” standards.
- Despite a dip in transactions, Q1 sales were up 6.4% to $2.9 billion—driven by new locations.
- “The fact is, smiles down the line don’t slow us down,” said Boatwright.
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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