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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.
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Automotive State of The Union
CarMax Hits Reset, Hilux BEV, Walmart Drone Delivery
Episode #1241: CarMax leans on price cuts and marketing to spark sales, Toyota takes its iconic Hilux electric in Europe, and Walmart keeps scaling drone delivery as demand grows.
CarMax is shifting back to fundamentals as sales and earnings continue to slide. The company will cut prices, trim costs, and increase marketing to regain momentum heading into 2026.
- Q3 results saw unit sales down 8% and earnings down 50% year-over-year.
- CarMax will use targeted price cuts to spark demand, not blanket reductions.
- The company is lowering margins while boosting marketing to drive traffic.
- SG&A will be cut by $150M annually despite increased ad spend.
- “Our average selling prices have drifted upward and appear to be less attractive to customers,” said Interim CEO David McCreight.
Toyota just electrified one of its most important global trucks. The Hilux made its first European appearance as a full EV, signaling Toyota’s pickup electrification push—just not for North American buyers.
- Toyota debuted the Hilux BEV at the Brussels Motor Show, and uses a 59.2 kWh battery, offering up to 160 miles WLTP range, or 236 miles in city driving.
- With AWD and 473 Nm of torque, it can tow 1.6 tons and haul over 1,500 lbs, keeping its work-truck credibility.
- Europe gets the Hilux BEV in April, but the truck isn’t sold in the U.S.—and Toyota isn’t signaling that will change.
Alphabet-owned Wing is dramatically expanding its on-demand drone partnership with Walmart, signaling that flying groceries and meds are becoming a real part of everyday commerce.
- Wing will expand drone delivery to 150 more Walmart stores, building on pilots in Dallas-Fort Worth and Atlanta.
- Wing’s top 25% of customers order three times per week, mostly groceries like eggs, ground beef, produce, and snacks.
- Once complete, Wing will operate from 270+ Walmart locations, reaching roughly 10% of the U.S. population.
- Walmart remains Wing’s primary commercial partner, even as the company continues testing larger drones capable of carrying five-pound payloads.
- Wing’s new chief business officer Heather Rivera: “Volume is definitely powering our flywheel.”
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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