Jan. 13, 2026 | Separating auto tech hype from reality; Honda dealers revolt over Sony
About this episode
Honda dealers are pushing back against the automaker's partnership with Sony over the Affila electric vehicle, which they deem detrimental to core business. Meanwhile, GM is reconsidering plug-in hybrids as it remains focused on EVs. Inventory levels for new vehicles are stable, with EVs showing slower sales rates. PWC's CJ Finn discusses the challenges of distinguishing genuine automotive tech advancements from hype at CES, emphasizing the importance of strategic partnerships in areas like AI and autonomous driving. The episode highlights the industry's evolving landscape and the balancing act between innovation and consumer demand.
PwC’s CJ Finn discusses how to separate hype from reality at CES 2026 as artificial intelligence dominated nearly every automotive announcement. Honda dealers call on the automaker to end its partnership with Sony, calling the Afeela electric vehicle “an albatross” that bypasses franchised dealerships. Plus, U.S. inventory holds steady near 3 million units.
Affila electric vehicle
"...the joint venture's Affila electric vehicle is set to start deliveries in California later this year at over $90,000."
The Affila is a new electric car made by Honda and Sony. It's important because it shows how traditional car companies are working with tech companies to create new types of vehicles.
The Affila is an electric vehicle developed through a joint venture between Honda and Sony, representing a significant step in Honda's electric vehicle strategy.
direct sales model
"...It bypasses franchised dealerships entirely through a direct sales model."
A direct sales model means that the car company sells cars straight to customers instead of using dealerships. This can make buying a car easier and cheaper.
A direct sales model allows manufacturers to sell vehicles directly to consumers without going through traditional franchised dealerships, which can streamline the buying process and reduce costs.
Honda
"He calls the venture an albatross, urging Honda to cut losses before it drains more resources."
Honda is a well-known car maker from Japan that makes cars and motorcycles. They are popular for their reliable vehicles.
Honda is a major Japanese automotive manufacturer known for producing reliable cars and motorcycles. The company has a strong presence in the global automotive market, particularly in the U.S.
Acura
"They say every dollar spent on Affila is one not invested in core Honda and Acura products."
Acura is Honda's luxury car brand. They make more upscale vehicles that focus on performance and technology.
Acura is the luxury vehicle division of Honda, known for its performance-oriented cars and advanced technology. It competes with other luxury brands in the automotive market.
General Motors
"General Motors is still evaluating plug-in hybrids for the U.S. market."
General Motors is a big car company that makes many different brands of cars. They are now focusing on electric and hybrid vehicles.
General Motors (GM) is one of the largest automobile manufacturers in the world, producing vehicles under various brands, including Chevrolet, GMC, Cadillac, and Buick. The company is focusing on electric vehicles and hybrids as part of its future strategy.
plug-in hybrids
"General Motors is still evaluating plug-in hybrids for the U.S. market."
Plug-in hybrids are cars that can use both gas and electricity. You can charge them at home, and they can drive longer distances on electricity alone compared to regular hybrids.
Plug-in hybrids are vehicles that can run on both gasoline and electricity. They have a larger battery than traditional hybrids, allowing them to be charged from an electrical outlet and providing a longer electric-only driving range.
electric vehicles
"Although CEO Mary Barra says electric vehicles remain the company's long-term focus."
Electric vehicles are cars that run only on electricity and don't use gas. They are better for the environment because they don't produce harmful emissions.
Electric vehicles (EVs) are cars that run entirely on electricity, using batteries instead of gasoline or diesel engines. They are known for being environmentally friendly and producing zero tailpipe emissions.
OEMs
"The OEMs in particular are focusing in on three areas. One is powertrain with electric and that that shows kind of evolved."
OEMs are the companies that make cars and car parts. For example, Ford is an OEM because they build their own vehicles.
OEM stands for Original Equipment Manufacturer, referring to companies that produce parts and equipment that may be marketed by another manufacturer. In the automotive context, OEMs are the car manufacturers themselves, like Ford or Toyota.
powertrain
"One is powertrain with electric and that that shows kind of evolved. People have figured out who their partnerships and how they're approaching it."
The powertrain is what makes a car move. It includes the engine and other parts that help the car go forward, like the transmission.
The powertrain is the component of a vehicle that generates power and delivers it to the road. It includes the engine, transmission, and drivetrain. In electric vehicles, the powertrain consists of electric motors and batteries.
autonomous
"And then the third is autonomous. And what you see at the show, but also you see in the industry is no individual company has the capabilities in-house or the capital."
Autonomous means self-driving. These are cars that can drive on their own without needing someone to control them.
Autonomous refers to vehicles that can drive themselves without human intervention, using a combination of sensors, cameras, and artificial intelligence to navigate and make decisions on the road.
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