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It’s a new day in a new month as we talk about the potentially light residual effects of the strike on the industry. We also cover a big win for Tesla in court as well as a homeschooling trend that seems to have staying power.
Show Notes with links:
The UAW's simultaneous strike against the Big 3 initially stirred fears of colossal financial damage, but as the dust settles (maybe), early indicators show that the $2.9 billion loss seems more manageable than critical.
- The UAW's 146,000 members secured a significant 25% wage increase, cost-of-living allowances restoration, and additional benefits.
- Ford, facing an increase of $850 to $900 per car cost, along with Stellantis and GM, plans to find efficiencies to balance the escalated labor costs.
- Stellantis weathered the strike with over $3 billion in lost revenue but contained profit losses to about $800 million, outperforming GM and Ford.
- Investors initially panicked, slashing $40 billion from GM and Ford's market value, but S&P’s recent upgrade of Ford's credit rating shows a silver lining.
- Chris McNally, an analyst with Evercore ISI, optimistically noted, "We believe that GM should be able to offset most of the UAW-driven increased wage headwind."
In a landmark decision, Tesla triumphed in the first U.S. trial concerning its Autopilot system's involvement in a fatal crash. The verdict, favoring Tesla, underscores a pivotal point: despite technological advancements, the responsibility for road safety ultimately rests with the driver.
- The case revolved around a 2019 incident where a Tesla Model 3 veered off the road, resulting in a fatality and severe injuries.
- The jury, after four days of deliberation, concluded 9-3 that there was no manufacturing defect in the vehicle.
- Tesla maintained that the driver was under the influence of alcohol, and it was unclear if Autopilot was active during the crash.
- Tesla stated, "The jury's conclusion was the right one,"
Homeschooling is experiencing a historic surge in the US. This trend transcends the common stereotypes of homeschooling, attracting a diverse set of families for a variety of reasons, ranging from dissatisfaction with traditional schooling to seeking a more value-aligned education for their children.
- Once considered a niche choice predominantly favored by religious families, homeschooling is now becoming a mainstream educational option across the nation 51% increase in the number of homeschooled children compared to the 2017–2018 period, now including more students than Catholic School
- Parents are opting for homeschooling not only due to concerns over traditional education quality but also for reasons such as addressing their children's unique needs, avoiding bullying, and ensuring curricula align with their values.
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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