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Welcome to Wednesday! Paul’s in Moscow (not Russia), Kyle’s in Nashville as we talk about coastal dealers’ facing skyrocketing insurance premiums. We also talk about EV’s topping the Manheim auction charts, as well as humanoid robots spotted at a BMW plant…working.
Show Notes with links
- Coastal automotive dealers are facing skyrocketing insurance costs which have nearly doubled due to higher frequency and severity of storms, with wind coverage charges tripling in some areas from Miami to Galveston, Texas.
- Troy Duhon, friend of ASOTU and owner of Premier Automotive in New Orleans, formed his own insurance company, Prestige Insurance, to provide wind and hail damage coverage for his dealerships. He also installed generators in each of his stores.
- Chris Poulos, owner of West Point Lincoln in Houston, focuses on securing lot items and relocating vehicles to protected areas, but knows that high deductibles often hinder how much insurance can help. “In incidences [similar to Beryl], insurance — unless you sustain significant damage with significant flooding — is not going to really help you offset any of the cost involved in getting up and running."
- Tom and Anita Castriota, owners of Castriota Chevrolet in Hudson, Florida, are able to move hundreds of vehicles to 10 acres of higher ground behind their dealership and have installed windows that can withstand 140mph winds.
- Ted Smith, president of FADA, says that this time of year, pushing out information to help dealers minimize risk becomes a huge focus. “Standard operating procedure in Florida is to be ready, to take every storm very seriously and, most importantly, protect lives — but protect the inventory, as well.”
- For the first time ever, an EV topped the monthly best-seller list for Manheim.
- In June, the 2023 Tesla Model 3 was Manheim's No. 1 seller and the 2023 Chevrolet Bolt ranked as No. 3.
- The top 5 best-selling EVs at all auctions according to AuctionNet were; 2021 Tesla Model Y, 2023 Model 3, 2021 Model 3, 2023 Chevy Bolt, 2021 Model 3 (maybe a trim difference?)
- This milestone reflects the growing presence of EVs in the wholesale market.
- Manheim saw over 21,000 EV sales in Q2, marking a 108% YoY growth and in the first half of 2024, EV sales are up 97% with over half sold units (57%) are Teslas
- "Electrics command a 2.1% share of Manheim sales, up from 1% a year ago," said Jeremy Robb, Cox Automotive.
- Robotics startup Figure released a video last week showing its 01 humanoid robot performing tasks at a BMW car plant.
- The 01 robot demonstrated moving multiple components onto a jig with placement tolerances claimed to be less than a centimeter,, showcasing its potential to handle repetitive, low-skill tasks.
- The robot uses neural networks to learn tasks and can work in human-designed
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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