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Episode #1050: A record number of U.S. consumers are skipping auto loans over rejection fears, EV history unfolded as BYD overtook Tesla in Europe and Google’s I/O 2025 keynote was a full-court press on AI innovation.
Show Notes with links:
- Consumer confidence in securing an auto loan is slipping fast. A recent survey by the New York Fed shows a record number of people aren’t even applying—because they assume they’ll be turned down. It’s a new high in pessimism.
- 34% of potential borrowers didn’t apply for an auto loan in February due to fear of rejection—the highest since tracking began in 2014.
- Loan rejection rates hit 14%, a major jump from just 1.5% a year ago.
- Only 9.9% of consumers expect to apply for a loan in the next year, down from October's 11%.
- Just 63% believe they could handle a $2,000 emergency expense—also a record low.
- “The SCE Credit Access Survey points to an expected future tightening in credit conditions,” said the New York Fed.
- China's BYD outsells Tesla in Europe for first time, report says | Reuters
- In a milestone moment for the European EV market, Chinese automaker BYD has outsold Tesla for the first time.
- BYD logged 7,231 BEV registrations in Europe in April, topping Tesla’s 7,165—marking its first lead ever in the region.
- The Chinese brand only expanded beyond Norway and the Netherlands in late 2022 but is now gaining fast.
- Tesla faces pressure from a 13% Q1 sales dip, factory retools for the Model Y, and delayed rollouts of lower-cost trims.
- Chinese-made EV registrations jumped 59% year-over-year in April despite EU tariffs.
- “This is a watershed moment for Europe’s car market,” said Felipe Munoz of market research firm JATO Analytics.
- Google's I/O 2025 keynote was packed with AI firepower. From shopping with chatbots to making movies with prompts, Google is putting generative AI front and center. Here’s a quick recap of the announcements:
- Gemini’s “AI Mode” is rolling out to all U.S. users, blending search, shopping, and smart summarization.
- Project Starline evolves into “Google Beam,” bringing 3D video chat to HP-branded hardware.
- New AI filmmaking app “Flow” uses Imagen, Veo, and Gemini to create 8-second video clips from prompts.
- Project Aura introduces Android XR smart glasses co-developed with Xreal and eyewear brands like Warby Parker.
- “We are shipping faster than ever,” said Google CEO Sundar Pichai, highlighting the company's accelerated pace in AI development.
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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