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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
Live from the NY Auto Forum, Checking in on Chinese OEMs in Mexico, GM Bets On Big Gas Trucks
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Episode #1307: Today we’re at the NY Auto Forum (thanks to our friends at Force Marketing) for a day of interviews and content with some of the industry’s finest. Plus, Chinese brands promise profits in Mexico but miss on execution, while GM bets big on trucks as the market softens.
Show Notes with links:
- Chinese automakers are gaining traction globally but early dealer experiences in Mexico are flashing caution signs. While interest is high, profitability struggles and weak factory support are raising red flags for retailers considering jumping in.
- Mexican dealers ranked BYD as the most desirable new franchise, but it was the only Chinese brand to crack the top 10 in the survey.
- Many Chinese brands entered Mexico targeting 50,000 annual sales but are achieving closer to half that, leaving dealers chasing volume that is not there.
- Dealer-factory relations lag significantly, with top legacy brands like Toyota and Chevrolet leading, while Chinese brands like MG ranked 7th, Great Wall 13th, and Chery 15th.
- Rapid expansion exposed weak aftersales infrastructure, especially in parts distribution and service, limiting customer satisfaction and repeat business.
- “They arrived focused on selling, selling, selling… there is a lot of work to do… in aftersales service,” said JD Power’s Gerardo Gomez.
- GM is leaning into what’s working. Despite rising gas prices and softer overall sales forecasts, the automaker is boosting heavy-duty truck production, signaling continued strength in one of the industry’s most profitable segments.
- GM will add a sixth production day at its Flint Assembly plant, increasing output by an estimated 40,000 to 50,000 trucks annually.
- The plant already produces about 1,100 heavy-duty Silverado and Sierra pickups daily, running three shifts around the clock.
- The move appears aimed at gaining share from Ford, which is also ramping production and skipping summer shutdowns to keep up.
- Heavy-duty trucks remain profit drivers, with prices starting around $50,000 and often reaching six figures with options.
- GM CFO Paul Jacobson doesn’t think the current economic climate will affect demand yet, saying: “Usually it takes four to six months of sustained, high oil prices before people start to think… maybe I should buy down.”
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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