2026 Mazda CX-70 Turbo S Premium: Are 2 Rows Better than 3?

This is America on the Road named Best Radio Show by the International Automotive Media

Conference and now in its 33rd year on the air.

Thanks for being with us as we bring you the latest automotive information from around

the world.

I'm Jack Neerad with me is co-host Chris Teague unburying himself from a major winter

storm.

I mean, tell us about that, Chris.

Yeah, the impacts here aren't as bad or as impactful, I guess I should say, as places

like Texas and some of the Midwest, but we got almost two feet a couple of days ago and

then another six inches right after that, the night after or so.

They are still running the plows here as I speak now, 48 hours later, so it's winter

in Maine.

Yeah, there you go, winter and winter and winter.

Let's talk about automotive news because that's what we're about, we're not a meteorological

show.

Here's some news.

Tesla is putting self-steering behind a monthly paywall.

It raises a big question for drivers who thought they got this kind of stuff.

This stuff came with the car.

Volvo says its new EX60 electric SUV ends range anxiety for good.

It has 400 miles of range and ultra-fast charging.

We'll see if that changes the game.

I'm curious as to your opinion on that, Chris.

From sky high interest rates to $1,000 monthly payments, auto loans are squeezing every generation.

Younger buyers are really hard hit.

So this is a story that affects virtually anybody who buys a new car, so we'll talk more

about this.

And a federal judge has forced federal government EV charging funds to be spent even as change

regulations suggest that fewer electric cars may actually need the chargers.

So this was bound as first of controversy, judicial appeal and everything else.

So we'll have our thoughts on that.

To spend or not to spend, right, Chris?

Yeah, it seems like a lot of it's already spent, so we'll have to see where we're going

after that.

Yeah, interesting.

America on the Road has brought you by drivingtoday.com, emlancy.com, the publisher of my latest

book, Only One Thing Stays, The Same, and Mercury Insurance.

If you're looking to save some money, you should switch to Mercury for your auto and

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Get a quote today at drivingtoday.com slash auto insurance.

That's drivingtoday.com slash auto hyphen insurance.

Well, Chris, what is your test vehicle this week?

I drove the 2026 Volvo EX30.

It's one of the automaker's newer models, and I can't wait to tell you all about it.

All electric, of course.

My test vehicle this week is the 2026 Mazda CX70 Turbo S Premium, so we'll talk about

that.

We have an interesting guest, too.

My Moussainis is CEO at Detroit Axel, and his company has been dramatically affected

by recent tariffs, so we'll talk to him about that.

He reached out to us to talk to us about it, so we're eager to talk to him about that.

So, stay with us, and we'll be right back right here on America on the Road.

Welcome back, everybody, to America on the Road with Chris T. Jack D. Radback with you

at his news time.

And of course, Tesla is always in the news, but they are changing things up for their

drivers or for drivers who buy Tesla vehicles going forward.

They've changed the access to their advanced driver assistance technology.

Several key features are now behind a monthly paywall.

They want to increase subscription revenue.

That's basically their new business model, is to get as many people paying over and over

and over again forever and ever as long as they own the car.

New vehicles sold by Tesla in the United States and Canada will no longer include auto-steer

as a standard feature.

And instead, buyers must subscribe to the company's full self-driving software, $99 per

month to regain access to self-steering.

This is something that a lot of car companies provide, or you can get as a one-time fee

anyway.

Your thoughts, Chris?

Well, as you said, I think it does help them boost their subscriptions, right?

I think previously full self-driving was available for several thousand dollars on top of the

price of your Tesla.

So I guess it's good that they can get this to a cheaper price point for people or more

approachable price point, I should say.

But I have the question, so you mentioned new Teslas.

Does this impact existing Teslas?

So if I own one, do I now have to start paying a subscription if I want these products?

It doesn't appear that that's the case.

I think this is all new Teslas.

I don't know that they can do that.

There was a situation where you could buy full self-driving as, I think, an $8,000 option.

It was a giant option, but then you got it for the life of the car.

Now you might do the math and find out that the $99 a month would be cheaper than spending

$8,000 on it.

But it's interesting to me that these advanced features that Tesla is pretty much known for

are now behind a pay subscription kind of pay situation.

And I'm not sure that people are absolutely wild about this, and especially if you're

financing a car, you might go, OK, I'll finance this $8,000 for this thing, or whatever

an option costs to get this stuff.

Some of this stuff is standard, like Lane Centering, for example, is standard on things

like Hyundai's.

It's kind of wild to me.

Yeah, and one of the bigger selling points that I've heard from many people over the

years has been Tesla's technology and the fact that a lot of these features are baked

into the cars.

So who knows what this is going to do to demand.

I mean, if it makes their cars cheaper out of the gate, maybe, but I don't know that

that's going to be the case.

Yeah, I think in a lot of ways Elon Musk is trending away from the car business and trending

more into the software and AI business.

And maybe that's where the future lies for him.

I don't know if it lies that way for Tesla, but maybe some of his other companies will

have to see.

Well, we talked about this last week a little bit.

But the Volvo EX60, now Volvo has introduced it officially, I guess.

This is an all-electric midsize crossover.

Of course, the XC60 is, I think their biggest seller has been for a long time.

This is a five-seat midsize SUV with 400 miles of estimated range.

All-wheel drive here in the United States anyway.

And their coming versions will have somewhat less range, 320 miles or 310 miles.

As an electric vehicle owner yourself, Chris, does 400 miles of range change the game for

you?

No.

And this is only coming after having owned one for almost two years now.

I think if you'd asked me before I purchased one, is 268 miles or whatever our Honda Pro

Log is rated at enough?

And I would have said no.

But in daily practice, it's perfectly fine.

So 400 miles, I mean, for people who are experienced, it's not going to be a huge selling point,

I don't think.

But for newcomers, probably.

Yeah.

They're also using faster charging, or claiming faster charging speeds, 173 miles of range

can be added to the vehicle in about 10 minutes.

Of course, that's not a full charge.

I don't know what the full charge would be.

I think we could probably do the math on that.

Although it's not linear, is it?

I mean, it takes longer to get a full charge than like three times that or whatever the

full charge would be.

Yeah.

It slows significantly after 80%.

And then I think the other challenge will be finding a charger that can actually deliver

those speeds if you're trying to hit the maximum rate that they claim.

Yeah.

It's interesting to me that Volvo is making a big deal about this.

I guess they have to.

But certainly, I think the bloom on electric vehicles is off the road here quite a bit.

And we'll just have to see what happens with this new vehicle.

But they're touting a lot of things there.

Somebody at Volvo has data showing them that their customers want electric vehicles.

So I can see this being maybe something that fits that mold for them.

Yeah.

And I guess for Volvo customers, there's a lot to like about that too.

I mean, they're probably more ecologically oriented than a lot of customers of other

vehicles.

I want to talk about auto loans and auto debt.

There is a study that came out from Lending Tree that I think is fascinating and it shows

just how much people are paying and really getting clobbered by auto loans.

I mean, I hardly know where to start here.

The various generations are affected somewhat differently by this, depending on how much

they borrow and all their credit history, a bunch of other things.

But millennials owe an average of $22,600 on their auto loans.

That's a lot of money, I think.

Gen X borrowers about the same number, $22,500.

Gen Z borrowers borrow less, averaging $20,000, and so their monthly payments are the lowest

at $522, but for everybody, there's a ton of money.

And there are a lot of people now with $1,000 a month car payments and huge amounts of auto

loan debt.

Yeah.

It's kind of a perfect storm, right?

New vehicles are more expensive, almost $50,000 average transaction price.

Interest rates are still elevated, although they've come down a little bit.

And then you have the rest of the economic situation where people are struggling to buy

groceries and things.

So these kind of come together and make a big issue for a lot of people.

And unfortunately, I think this demand is going to push people to the use market, which

is going to drive those prices up as well.

Right.

Let's talk, I'm glad you talked about interest rates because I mean, that's something very

important.

And Gen Z borrowers, according to the study, are paying an estimated 13% interest, 13% interest.

That used to be usury.

That used to be illegal, you know, back when I was a kid.

That adds up to nearly $9,800 in total interest over the life of a loan.

Gen X borrowers pay about the same amount, but they're borrowing more, so they're paying

less interest.

Loan terms are stretching longer.

More than half of Gen X borrowers have auto loans longer than six years, and 8% of millennials

are locked into loans more than seven years long.

That might make the monthly payment lower, but you pay a lot in overall interest, don't

you?

You do.

And it also locks people into those vehicles because you're not paying off the principle

as quickly you end up upside down or with negative equity, I guess is the technical term there.

So a lot of people are going to be shocked when they try to trade these vehicles in three,

four years down the road, and they're not as valuable as they thought they were.

Yeah, here's another bunch of statistics I think are interesting.

Gen Z borrowers spend about 13.4% of their monthly household income on auto loans.

That's a ton of money.

Baby boomers, you know, I'm one of them, spend roughly 11.1%, probably less onerous

for them, given where they probably are in terms of overall personal worth.

Millennials are spending 7.7% and Gen X borrowers 7.1%.

You really don't want to spend over 10% of your income on an auto loan, right?

Yeah, I mean, I'm considered, I guess, an elder millennial almost in the Gen X category,

but it would be very painful for $1,000 to be coming out of my account every month.

That's a significant chunk of my mortgage cost.

Yeah, yeah, I mean, and you're talking about an asset that declines in value as opposed

to your home mortgage where, in theory, you'll at least break even or likely it will appreciate

in value.

Here's a story I want your comments on, Chris, a federal judge has ruled that the Trump administration

has to keep spending on electric vehicle charging, or resume spending I guess, on electric vehicle

charging infrastructure, saying that this had been approved by Congress, so they have

to spend it.

I think the Trump administration put a hold on that, thinking, hey, we're switching things

up, we won't need all this infrastructure, what's your basic take on this?

Well, again, we go back to the cart before the horse conversation.

I don't know if more chargers is going to spur more EV adoption.

I think that it's highly political here, so maybe it's not the best idea to do that.

At the same time, I would like to have more chargers for my own use, so it's hard for

me to come up with a solid answer there without flip-flopping.

I think that's a solid answer, and the answer is, we're not sure, right?

I mean, there's pluses and minuses, there's nothing wrong with that, it makes sense.

Remind us of your road test vehicle this week, Chris.

I had the 2026 Volvo EX30 all-electric SUV.

Right, and I'm testing the 2026 Mazda CX-70 Turbo S Premium, so stay with us for that,

and we'll be right back.

I received a letter from a reader this week, and I thought I'd share it with you.

Here's what he wrote.

I just got around to reading Dance in the Dark, and wanted to say how much I enjoyed

it.

I'm a compulsive reader, and this one was right up my alley, an unlikely hero, a lot

of twists and turns, some adult content, and humor that rose naturally from the action.

Keep on writing, and I'll keep on reading.

Of course, that's just the kind of letter any author would love to get.

I hope that others get the same enjoyment from reading Dance in the Dark, and my newest

crime novel, Only One Thing Stays the Same.

Both are available exclusively at Amazon.com.

That's Dance in the Dark, and Only One Thing Stays the Same, both written by me, Jack Arne

Red.

Thanks for looking for them today.

Welcome back to America on the Road with Jack here right back with you along with Chris

Teague.

Glad that Chris is with us co-hosting, and Chris you have a fascinating vehicle to road

test for us.

It is a vehicle that I drove, I think in Barcelona years ago, and then it's been kind of a political

football basically, but tell us about the Volvo EX30.

Yes, it is a surprising addition to the Volvo lineup given where it's made and all that,

but as a 2026 Volvo EX30, this is their smallest electric vehicle for sale in the United States.

The EX90 is the larger three-row, not version, but vehicle that they sell here.

You can get into this vehicle for around $40,300.

I tested the all-wheel drive Ultimate model, which with a few options came out close to

$50,000.

Jack, do you remember driving the EX30?

What were your impressions of it?

I do.

I remember it very vividly.

In fact, I think Matt DiLorenzo and I partnered up when we were in Barcelona to drive this

thing around.

I mean, it's a long time ago now.

I had fun with it.

I mean, it seemed like it's maybe a better car for Europe than it is for the United States,

just in terms of scale and everything else.

I liked the vehicle.

I thought it was a fun vehicle, and I thought it could be a good, valuable vehicle.

I agree, and there are some issues I had with the practicality, but I'll get to that after

the drivetrain.

The single-motor version, which starts down around $40,000, has 268 horsepower.

My dual-motor version had 422 horsepower, 400 pound-feet of torque, and all-wheel drive.

Those are tremendous numbers for a vehicle that's not much bigger than a Golf GTI hatchback

if at all, really.

I haven't looked at the specs, but it certainly didn't feel bigger than my Volkswagen Golf.

Volvo claims a sub-four seconds, zero to 60 time.

They're saying like 3.4 seconds.

My test car had all-season tires, and the roads are very cold here, so I did not put that

to the test.

I wanted to stay on the road and out of the ditch.

What I'll say is that it's extremely quick.

It's very smooth.

The power delivery, as with all electric vehicles, feels pretty linear, and it's quiet.

You're not hearing an engine go and all that.

The ride quality is surprisingly smooth, despite the fact that this car also has sharper than

expected handling.

You go around a corner in this vehicle, and it stays pretty flat, and that's surprising

given that the ride quality, there's not a big trade-off of ride quality for handling

there.

Jack, what did you think about the speed?

Did you guys get to test the dual motor that long ago, or did they only have the single

for you?

You know, I really can't remember.

I think we did.

It struck me as a pretty quick vehicle.

Of course, even in single-motor form, that's quite a bit of horsepower.

This is heavier than the typical subcompact or compact hatchback, but still, it struck

me as a very pleasant vehicle to drive with plenty of power.

I agree.

So speaking about range, which we did in the last segment, the single motor delivers 261

miles of range, and the dual motor delivers 253 miles of range, which I'm going to go

ahead and tell you if you can charge at home.

That's probably enough for you and your daily commute.

I don't know about road tripping, but those numbers are not bad in real life.

They're not as impressive as 400 miles, so we can say that.

Inside you get five seats.

My ultimate model came with, I won't say recycled, I'm going to use the word sustainable

cloth upholstery.

It feels like wool almost.

It's very high quality.

There's no plastic bottle feel to it or anything like that, but with those seats, you get heated

seats and not ventilated, and you get a heated steering wheel with this model as well.

There's good room in the front seats, Jack.

I've always loved Volvo's ergonomics.

I think the way that you can position the seats and the steering wheel adjustments fit

well with the rest of the interior.

So for me, at six feet, I can adjust my seat and have good visibility without any real

like ducking and moving to try to see around pillars and things like that.

The back seats are short on head and leg room, and that is partially due to this vehicle's

overall length.

The wheelbase is pretty short given compared to some of its competitors.

And it's also got a sloped roof, so you kind of lack some of the interior dimensions

that you would probably want.

And the cargo space is also compromised because of that.

So my 80 pound golden doodle loading him in through the back is kind of hard

because he smacks his face on the door.

He's just too tall for it.

So I think if you're considering this vehicle, it's great for in town use.

But I would try it out to make sure that it fits your your needs, especially if you

have kids or a large dog or you carry a bicycle or anything like that that you

want to to fit in there.

Technology wise, you get a 12.3 inch touchscreen.

We've talked about this and I've said this with every other vehicle that has this.

But everything is built into the touchscreen, climate controls, vehicle controls,

seat controls, headlights, windshield wipers, everything is in this screen.

And I had to look at the owner's manual to learn how to turn the windshield wipers on.

And it also took me 30 minutes to adjust the driver's seat scrolling through the menu.

And now I'm not a Luddite.

I'm not also that young anymore, but far from it, but you're young enough.

Yeah, I figure I can I count myself as pretty tech savvy.

And it took me a while.

And even my wife got in and was like, oh, how do you adjust the seat and things like that?

It's just too complicated for me.

I don't I don't enjoy that level of complexity.

I would wish for some physical controls.

I think most people would, too, even if you get used to it.

The good news is you get Google built in, you get wireless Apple CarPlay and Android Auto.

The end built the built in input or navigation system is fantastic.

And then on top of that, you also get Volvo's excellent safety equipment,

blind spot monitoring, rear cross traffic alerts, Ford collision alerts.

And the ultimate comes with a highway driving assistance system.

So you can go hands free for short periods of time.

Jack, if I were buying this vehicle, I would probably still opt for all wheel drive,

even with the extra cost.

I think it's worth it if you live in a cold climate.

But it's too small for my family of four plus our dog.

And that's really my biggest knock against it.

You know, the one thing I'll say before we close is that the key fob on this vehicle

has no buttons on it.

So you don't start, stop the vehicle.

It just automatically turns on and off.

And there were times when I would approach the vehicle,

it wouldn't recognize the key.

And I had to walk away and come back because there's no unlock button.

So just some things to keep in mind if you want to,

I would test it out before you before you make a decision.

Lot to like about it.

And then some things that are quite irritating, I think.

Maybe my wife would say that about me, Chris.

Well, as you probably know, sometimes the simplest solution is the best solution.

It's certainly true in solving crimes.

And of course, I write about crime, including true crime and some crime fiction.

But I also write about cars.

And the 2026 Mazda CX-70 Turbo S Premium kind of proves that in a way.

I mean, I think Mazda wanted to have a two-row alternative, a mid-size SUV.

There are some buyers who don't need a third row,

don't want a third row and want something like that.

I mean, the Lexus RX is maybe the prime example of a vehicle like that

that I think they want to compete with here.

Well, what they did was they just eliminated the third row of the CX-90

and now have the CX-70, which is, I guess, a good solution.

I mean, it certainly opens up a lot of cargo space.

I think not that much more cargo space than if you had a CX-90

with the rear seat folded out of the way.

But okay, they ashcan the third row and off we go.

And from that point of view, though, Chris, what's your overall take?

Say two quick things.

I still remain impressed that Mazda is able to offer so many variants

of every vehicle that it makes.

And in terms of the CX-90 versus CX-70, I still am in the camp of just make the CX-90

and maybe make it a little bit cheaper because you didn't have to modify it

because for the CX-70.

But I would just fold the third row seat down, honestly.

Yeah, yeah.

And then you have that opportunity to use the third row if you ever need it.

And if you don't, but I'm certain their focus groups have told them

that there are some people who want a five seat vehicle.

They don't want a third row.

They want to pay for a third row or even feel like they're paying for a third row,

which they probably wouldn't in this car.

Let's talk about other things.

This has a strong turbocharged inline six cylinder engine,

mild hybrid assist, so that's good.

All-wheel drive is standard here in the United States.

A long list of comfort and safety features.

I mean, Mazda just kind of pulls out all the stops in terms of safety features.

Let's dive into pricing here.

The starting MSRP is $53,240.

This sits above the turbo trims.

It's kind of among the top of the turbo trims.

As I mentioned, this does have the higher output version of the inline six cylinder engine,

the turbocharged engine with good numbers and 3.3 liter turbocharged six cylinder engine.

340 horsepower and 369 pound feet.

When running on premium fuel, power is routed through an eight speed automatic transmission.

It has iActive all-wheel drive, which is kind of an interesting smart all-wheel drive system.

There's a lot to like about the powertrain here, isn't there, Chris?

I agree.

Still funky with the premium fuel thing.

I like that you can get a little more power there.

But all-wheel drive, I like Mazda's system and it's standard on all their SUVs now.

Yeah.

Interesting all-wheel drive system.

This is a fairly quick car, 0-60 in quick vehicle.

6.2 seconds.

That's pretty darn good, I think, probably all you need.

It'll also tow 5,000 pounds when equipped with the Mazda genuine towing accessories.

So that's good.

It's a fun to drive vehicle.

I mean, Mazda does this right.

And this is pretty fun to drive vehicle for a vehicle of its size.

This isn't exactly a pocket kind of vehicle.

It also has this kinematic posture control, which I note you wrote about one time.

And maybe you can describe it.

It's pretty interesting.

Alternative to torque vectoring, right?

Oh, yeah.

It's been so long since I wrote about it.

Jack, I don't even remember.

That was probably four years ago.

Yeah.

Well, I read your piece and basically it applies braking to one of the wheels.

As opposed to extra torque.

So it kind of is the opposite of providing torque.

It takes away torque from some wheel.

Essentially, the same kind of thing as torque vectoring to help it go around corners.

So I think that's pretty cool.

It also has selectable modes.

Good suspension, as I say, fun to drive.

Interior, really nice as we are used to, especially in up-level Mazdas.

Napa leather seating.

Soft touch surfaces all over the place.

Nice design elements.

Front seats are heated and ventilated with a lot of adjustability.

Rear seat passengers do well with a lot of leg room.

Of course, this is a vehicle that could be a three-row vehicle.

So there's tons of rear leg room for that second row.

And cargo space is gigantic, of course, because you don't have that third row.

You have a power lift gate.

And then there's the infotainment system.

12.3 inch Mazda Connect display.

That's good.

Most of the time you use the rotary controller,

but you can use the touchscreen if you are using Apple CarPlay and Android Auto.

This baffles me, Chris.

Maybe you have some questions on that.

Why they just don't make a touchscreen available as well?

With a rotary controller, we see that in some other models,

other brands.

Thoughts?

Yeah, I would like to be able to scroll through a million radio stations

without cranking a dial 55 times just to change the radio station or select a song.

But it's decent while you're driving.

You don't have to reach over and touch the screen, I guess.

Yeah.

Absolute immense amount of safety equipment.

I can't list them all.

So I think this is a really good vehicle at about $55,000.

And I think you were driving a vehicle that's also worthy of taking a look at, right?

I agree.

So there you have it.

When we come back, we will have our special guest, Mike Mushanich,

who is CEO at Detroit Axel.

A lot of thoughts about tariffs.

So stay with us for that.

And I think you'll find that stimulating.

We'll be right back.

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Welcome back, everybody.

To America on the Road Check, you read that.

But we have a terrific guest for you.

I'm really eager for this interview with Mike Musanich, who is CEO of Detroit Axel.

A company that has been affected by the tariffs recently.

And I want to talk to you about it.

And you want to talk about it, too.

And number one, thanks so much for being with us.

We appreciate it.

Thanks for having me.

Tell us a bit about your company.

I think it's an American success story.

I love to hear that kind of thing.

Tell us all about how you got to be where you are.

Well, the company started by my old man back in the late 80s.

So Detroit Axel, there's American Axel.

Then there's also Detroit Diesel Axel, Mammoth Multinational Corporation.

This is the father and son operation.

We grew to over 1,000 employees in five different countries and generated $450 million a year in revenue.

That's a pretty nice father and son business, not exactly a cottage industry with 1,000 employees.

He started out with two employees.

I joined him at the age of 14.

They fired me from high school.

So I started working with them and we grew shoulder to shoulder.

And he's still working.

He's at 75 years old, like 13 stents in his heart, two packs of cigarettes, and he's still working.

God bless him.

And American in so many ways.

Tell us what your company does.

It's an interesting company and tell us about it.

We're in the business of auto parts.

We rebuild auto parts and we also import and distribute auto parts, mostly online, predominantly,

e-commerce, all your regular e-commerce channels from Amazon to eBay to Walmart to our website.

So these are replacement car parts, right?

Yes, after market.

Do you supply any OEMs or is this all your business?

I'm here in the city of Detroit.

We do not supply any of the OEMs because they sneeze, we get a cold and we die, right?

So I've seen a lot of these suppliers that rely on one or two or three businesses for all their

revenue and if something happens, they go right under.

Yeah, it's nice to have tens of thousands of customers, hundreds of thousands of customers

versus two or three is probably a better way to do business.

So we're strictly retail.

And just describe to our listeners the kind of stuff that you supply.

On your wear and tear items, your brakes and rotors, your suspension and tire rods and struts,

of course, your axles and your steering.

And now we're getting into more product lines as time goes on, as we grow the company.

A lot of logistics involved, a lot of infrastructure.

How should I this?

Learn as you go, there is no manual for this.

I see the internet, but we jumped on it early back in 2008.

And I liken it to when the railroads were first, they came online in the U.S. here.

Now you have a guy selling shoes in Baltimore and he was witty enough to understand this modus of

logistics and operations.

So he started selling it in Georgia versus, well, he was only selling around Baltimore,

now expanded his reach.

And that's what the internet really did, from our garage doors to every porch on the nation

and beyond.

Yeah, you can reach out into everybody's homes.

And it was the death of the middleman.

Right.

My brother owns his own auto shop.

And I'm a big fan of remanufactured parts and aftermarket parts.

I think often they are really terrific values.

And I think you found that to be the case.

Yes.

I mean, out there, the OEM are just, I don't know, or auto zone, all these big boys,

they're hitting it with 600 and 700% margins or something, because it's just incredible

what they're trying to sell it for.

Right.

And that's how we got in is we're able to give a value and quality and, of course,

service to the customer.

Right.

And then you got a bit of a curveball, right?

I mean, the Trump tariffs, tariffs through a major curveball, change the way you have

to do business and change the economics of your business.

Tell us about that.

Tell us what happened to you.

You know, I told everyone last year, don't do it.

Don't vote for this guy.

I'm telling you, he's going to throw a wrench in everything and everyone's doing.

Right.

So I'll try to try to explain it simply.

Right.

We import a million dollars worth of product.

Once upon a time, we pay the federal government $25,000 in tariffs.

Now for that same million dollars in products, we're paying the federal government $725,000

overnight.

Right.

So it's not like, you know, a little gradual, right?

The increase or not.

They're just sudden abrupt, right?

And that's been going on since March or April till about the end of November.

And then he brought it down 10% because he met whoever he met.

It just how he felt that morning.

So now for that same million dollars, it's $625,000 versus that $25,000.

So it's a little bit of a relief, but that's not how our system is made to work.

And I think you sued the government, right?

I mean, you sued the administration.

Where does that stand?

We took him to the court of international trade out there in New York and we sued him for another

section of the code that he eliminated.

It was called the de minimis exemption.

The de minimis exemption allows packages valued under $800 to enter the country with no tariffs.

It's been on the book since the 1930s.

It was a godsend for lower middle class Americans.

And literally 1.5 billion packages would enter the U.S. yearly under the de minimis exemption.

Interesting, yeah.

It's a statue of law and he just took a pen.

So I don't like that one.

So he'll erase it.

And that's not the way our government works.

It was made by Congress and it can only be repealed by Congress, not by the executive.

And that's what our lawsuit was about.

And where does that stand?

Is it pending?

There's another lawsuit that was just ahead of us by one week,

which was the VOS election versus Trump administration against the,

you know, he puts these tariffs, section 301, section 232.

I put tariffs and, you know, I've become a trade lawyer out of necessity, I guess.

But so this company, which I give him kudos because they had the cojones to go out there

and demand their day in court.

And so they won in the court of international trade.

Then it got passed on to the court, the federal court of appeals.

They won there and then it went to the Supreme Court.

Now it's heard, I think it was in November, it was heard in the Supreme Court.

Now we're just waiting on them to make a decision.

So you're in some ways at least an observer or a party to the current situation where the tariffs are

under consideration by the Supreme Court and we haven't seen a ruling on that as we speak.

They challenged the IEPA tariffs.

In our case, he removed the de minimis statue on the basis of the IEPA,

the emergency powers act, right?

Or whatever you want to call it, right?

So if they win, we win.

So when I was our day in court, the court of international trade simply said all the remedies

that Detroit axle was seeking have already been awarded in the BOS case.

Since it's an appeal, we're going to stay in your case, right?

So it's pretty much they win, we win in different ways.

I don't have my fingers crossed or nothing because I don't expect much from the Supreme Court.

After the rulings, we've seen them and they gravitate to the executive.

The way one has to be prudent is to plan their business and their future as if they lost, right?

Write it off, keep doing what you do.

So that's essentially, I guess, what you're doing now, right?

I mean, you're kind of adapting to the fact that there are these tariffs.

How much of the tariff cost to you have you been able to pass on?

Are you just basically because of the law of supply and demand,

which is something that nobody is going to repeal?

Tell us about that, tell us about pricing and that.

We're in the business of small margins, right?

That's how we stay competitive and stay ahead of the competitors.

So many people in our industry are small margins or retail in general is based on small margins.

Sure.

Here, you increase the tariff tenfold, tenfold overnight.

Prices will go up because of the increase of tariffs, of course.

But what's happening is that there's a shortage of supply

because the cost of entry is so high.

Imports are down 20, 30 percent.

De minimis is eliminated.

So there's 1.5 million packages not entering yearly.

So the amount of people that are able to afford these tariffs,

you got to pay them as soon as they land, right?

As soon as they get to your, you got to pay them.

And you stocked up three and four months supply

and you have to pay tariffs on three or four months supply.

So there's less people that are able to do that.

So that means you're going to have less products.

So now you have the same dollars chasing fewer product.

That in itself is probably going to raise the price

faster than the tariffs themselves.

There's going to be a shortage and which is starting to show.

In our case, yes, we had to increase price.

And I would say that our revenues up 35 percent from last year.

Our profits are down 90 percent.

So that's the world that he's, he's flipped on us.

Yeah. Well, it's certainly a major change.

There's no doubt about that.

Absolutely a giant change.

Where do you source most of your products?

So, you know, what countries do they come from typically?

China, India for some, but mostly out of China.

I am gun hoe about reshoring manufacturing back into the U.S.

It's there for us.

I mean, the way we're able to produce and distribute

straight to the end user, right?

By eliminating warehouses and distributors and retailers.

You know, each one of them want to flip the item as it goes down the food chain.

But if you're able to produce it and retail it, you can compete.

But how do you compete when the government just takes all the money?

There's nothing for us to invest in.

Are you looking for American suppliers, looking for U.S. suppliers

or North American suppliers versus the Chinese suppliers

that you've had up till now?

They don't exist.

Will they exist?

No, I don't, this is not the way to do it.

You don't shield us from the world.

We need to, you know, roll up our sleeves and compete with ingenuity and hard work.

By putting tariffs on, not only are you increasing the pricing on everything

and any revenue that would have been used for, you know, for machinery,

for tooling, for engineers, for Pelerac and for equipment is all gone.

I mean, I tell you, we used to pay 700, 800,000 a month in tariffs.

Now you're at 11 million a month in tariffs.

There's nothing left.

So everything goes right to the government.

So they can pay interest on their loans, I guess.

You say you have 1,000 employees.

Are those employees in the United States or, you know, where are the...

About 400 of them are in the U.S.

We had employees in Mexico right on the border with El Paso

when we leveraged that de minimis.

We set up infrastructure there.

Oh, I see.

So you could ship from there, you know.

Right, yeah, and follow that de minimis, yeah.

I mean, five, six years of investment in infrastructure

all wiped out with executive order.

What would you like to see happen?

If your dream were to come true, how would this change?

The market has to be the one to choose who the winners and losers are.

Not the government.

But right now, I'll tell you, the Soviet Union and the Pulitzer Bureau,

at least they had 40 people conducting and directing the economy.

It didn't work out all that well, Mike.

It didn't work out, but they had 40 people.

Yeah, and it was a disaster that I don't think we want that.

This is not the way economy should run, or business should run,

and let alone a nation should run.

It started a revolution over a 2% tariff on a breakfast beverage.

And then we had the Boston Tea Party.

I mean, the only thing we'd ever ask is,

the Constitution made this country what it is today,

the greatest country on earth, and we should abide by its dictates.

Couldn't agree more with that, Mike.

Mike Buchenich of Detroit Axel.

Thanks for talking to me.

I appreciate it.

I learned a lot, and I wish you well.

No, thank you very much for having me.

And stay with us, everybody.

We'll be right back right here on America on the Road.

Welcome back to America on the Road with Co's, Kristie.

This is Jack Nierad back with you.

It is listener question time,

and we love to answer your questions

based on our long experience providing car advice.

Send those questions to editoratdrivingtoday.com.

That's editoratdrivingtoday.com.

Krist, I think we have a good question from Lula in Spokane, Washington.

Lula says this,

I only drive about 8,000 miles a year.

Am I better off buying or leasing my next car?

There are a lot of it depends that goes with this question,

or they go with this question.

I would say a financial advisor would probably tell you

leasing is not the best thing to do financially,

but it really comes down to your comfort level with the not,

like the fact that you're not going to own anything

at the end of the term of the lease.

You're basically renting a vehicle for 36 months, 24 months,

with a giant down payment at the front of it.

That said, if you're only driving 8,000 miles a year,

it could come out in your favor,

especially since leasing payments tend to be a little bit lower

than some of the finance numbers there.

I would say it really depends on your comfort level

with your financial situation,

and whether you want to own a car at the end of the lease

or the loan or not.

Yeah, I'd say the other thing I would say

about this giant down payment is,

it's not precisely a down payment,

because a down payment, when you make a purchase,

gets you equity, but this gets you zero equity,

so thus zero ownership of the vehicle.

So look at that too.

Low mileage is good for leasing,

but I'd still think buying a car is probably a better bet.

And that kind of wraps up our show for this week.

I'd like to remind you my crime novel,

only one thing stays the same,

is available in ebook and paperback form at Amazon.

So look for that.

It's very inexpensive right now.

If you like our show, please pass it on.

Listen on this radio station each week.

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We know you have a lot of choices,

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Hi, I'm Jack Arnie Redd,

and I'd like to tell you about my newest crime novel,

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