Vinay Shahani on Nissan Exit, Burnett on Building Ford 2.0 Facility | Daily Dealer Live

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Hey, everybody. Welcome to another edition of the Daily Dealer Live. I'm your host Sam

Darkin joining me today. Back again is the Uli Di Martino. Uli, what's up, guys? Thank you for

those joining our live stream as always. We are live streaming across all CDG social media platforms.

This is the voice of all automotive. You are in the right place to get up to date and to

participate in the conversation to have a voice post those comments. We'll bring them into today's

show. And I always say this, but what a show we've got for you today, our Daily Dealer Live audience.

We have got some really exciting and interesting topics. Wednesday, after our Daily Dealer Live

show, news broke about the exit of Vinay from Nissan American sales, Nissan America.

And we've got Vinay on the show today. Also, Burnett will join to talk about building a Ford

2.0 facility, so we'll have a fascinating conversation on that. But you know what,

before we go there, let's dive into today's headlines.

All right, so first up today, ICE tells Hyundai, let's see if you get this reference,

these are not the visas you're looking for. Star Wars fans, you may recognize that reference.

That's the backdrop after the shocking raid on Hyundai's Georgia Battery Plant. South Korean

workers were shackled and hauled off for visa violations. The images rattled soul and raised

tough questions about whether Trump's economic and immigration policies are working against

each other. Yes, most of the workers lack the required H-1B visas, but as Commerce Secretary

Howard points out, demand for those visas is hundreds of thousands of applications higher

than the available slots. So while the Trump administration pressures automakers to expand

U.S. manufacturing, it's also making it harder to get the labor needed to help build those plants

and train American workers. And as Hyundai has big plans at its recent investor day, Hyundai CEO

Jose Munoz called the U.S. the brand's, quote, engine of growth, with a goal of producing more

than 80% of U.S. sold vehicles locally by 2030, up from 40% today. And famously, we know from the

news Hyundai actually chartered a plane to bring these detained workers back home. But what a

fascinating topic. You have one interest to bring production back to the U.S.,

but you've got to have resources, you've got to have expertise, and you've got to have labor to

bring it back. What happens when that labor you bring into the U.S. to bring it back can't work

in the U.S.? What happens then, Yuli? Yeah, it's tough to speculate, but it looks like they were

trying to thread the needle potentially. Who knows, but you're right. Quite a conundrum. Yep.

Yep. Fascinating. Next up today, new car prices are creeping higher in as 2026 models started hitting

lots and automakers tried to cover rising costs. Kelly Bluebook says the average transaction price

climbed to over $49,000. That's about $250 more than in July and up 2.6% from a year ago. That's

the biggest jump in more than two years. Can you believe that? An average transaction price on new

is about to hit $50,000. Asking prices moved higher to the industry's average MSRP now tops $51,000,

up 3.3% year over year. Incentives, meanwhile, are holding steady. Automakers spent about

7.2% of ATP on discounts and rebates in August, roughly the same as a year ago. What's the takeaway

here? Well, costs are definitely up for automakers, dealers, and buyers, but the market's adjusting

gradually, not lurching into chaos. Speaking of chaos, this next article is fascinating.

Jag Land Rover has now extended its global production shutdown through September 24th.

That's the third straight week of disruption after a sweeping cyber attack crippled operations.

This reminds me of the shock from the CDK shutdown a year ago. We all felt that. But

insider sources warned the disruption could stretch into November, reports the BBC. JLR says

it's conducting a forensic investigation after confirming that some data was stolen,

but operational delays are costing JLR around 1,000 units every week. And who knows how many

millions of dollars? So here's our ask, by the way. We would love to bring on a JLR dealer to talk

about this shutdown, the impact to business, and what is the path forward to getting back up into

full business? So if you're interested in coming and joining the show, go to the place where we

bring all those requests into one place. It's cdgguest.com, cdgguest.com. And to any dealer,

the appeal is the same. This is the voice of automotive, the daily dealer live Monday, Wednesday,

Friday, 1 p.m. Eastern. You are in the right place. If you have an opinion, including on JLR,

go to cdgguest.com, fill out the form, and come talk about your topic. You'll meet Michelle.

She'll interview, talk a little bit about the topic, and we'll get you scheduled up for the show.

Lauren Klein with a comment. We all have some kind of PTSD from the CDK breach. And Michelle

comes in and says, Star Wars is a reference to my Hyundai. Transitioning into the car dealership

guys back with our second annual NADA party. It's happening in Las Vegas on Thursday, February 5th.

It's the hottest ticket at NADA 2026 with special guests and top automotive personalities,

plus a heck of a lot of great content, conversation, and innovation to be considered for a formal

invite. Just hit the link in the show notes, request to join, fill out the questionnaire.

Unfortunately, we can't have everybody there. There's not enough space, but we will be judicious

in trying to figure out who ends up there. So go there, fill out the formal invite, and we'll

get you brought into that event. We're excited for everybody who's able to attend.

Then you can hang out with us. You can hang out with us. We'll be there. You'll be there. I'll

be there, everybody. It'll be good times. So all right, well, let's launch into our first guest

today. And actually, the title says, Former Head of US Marketing and Sales,

Vinay Shahani. I'm not sure that's accurate just yet because you still have a Nissan email address.

So Vinay Shahani, welcome to the show. Thank you. It's going to be here. How are you?

Yeah. So what is the status this morning? Actually, so let's do this. Earlier this week,

right after our show on Wednesday, the news broke of your departure. It's a 180 from

what we all thought was happening in your world. Tell us a little bit about the news that broke

Wednesday. What prompted it? And what are you up to now? What are you going to do?

Yeah. Well, thank you for the opportunity. I love what you guys are doing. You're disrupting the

space. Just a big fan of the platform that Yosi has created and everything you're doing.

And thank you for the opportunity to tell the story. You had a little screen on there that said

Vinay quits. And it made me cringe a little bit because I got to tell you, I'm not a quitter.

I would like to tell you that I resigned responsibly. And I'll tell you the God's

honest truth. I went to my boss, Christian Mounier, about two months ago. And I told him,

I'm having a hard time. I've been living in Dallas, commuting to Nashville.

I've got a young family. I've got two kids. I've got a dad who's not in the best of health.

And I said, I got to dial it back. And I just, I think you need a leader who's boots on the ground.

That's my leadership style. But I didn't feel like I was up for the challenge of the logistical

challenge. So I said, I need you to find me a successor. And I want to do this responsibly.

I want to, I want to hand off the reins and a smooth transition. But that doesn't take away from

the status of the company, which I think is, is on the right track. I'm really super proud of

all the progress we've made in a short period of time. It's truly bittersweet. I mean, I grew up

in this company. You know, this is my second stint, as you know. And you and I were talking

before the show, but I think it's, it's an important point. I am who I am today. I am the

leader that I am today because of the investment that Nissan made in me many years ago, coming

right out of, right out of school. I worked in every aspect of the value chain, manufacturing,

product development, sales, marketing, product management. It was the best possible training

ground I ever could have had to take on the role that I had as the chief marketing and sales officer

for the biggest market that Nissan has globally. So I'll pause there because I said a lot, but

definitely not a transition. You gave us great information and family is a great

reason to do what you're doing. But before we go into kind of the future path for Nissan,

sure, tell us what, what are your plans now? So what will you do? You're looking for a

travel less job, right? Yeah, you know, what's next? Thank you for asking that question. The news

just broke yesterday. I had to wait because every company has their own cascade. But I'm excited to

try something completely new. So the old, old dog is going to learn some new tricks, hopefully.

I will join AT&T based here in Dallas. It's a 150 year old American powerhouse brand.

I'm thrilled to join as a senior vice president of marketing and planning.

I'm going to be working for a super talented business person, a woman by the name of Kellan

Smith Kenny. And I'm truly excited about it. You know, it was an opportunity that just kind of

very serendipitously came up for me. And it's a great brand with great track record. And they're

having fantastic success. And it's a really phenomenal leadership team. So I'm very fortunate

to have this opportunity. And so is there a crossover somewhere in, in automotive with that

role at AT&T? Or is it? Look, I think it's, it's less about the industry crossover. And it's more

about the functional crossover. And what I mean by that is the transferability, you know, brand

management and brand building is, is going to be very consistent. I mean, it's the same tenets.

It's ultimately relentless focus on your customer. Trying to figure out how to really innovate and

give consumers what they need. When in many cases, they don't necessarily know or can articulate what

they need. I think this idea of the converged customer, when you think about 5g wireless and

fiber coming together, and the investments that AT&T has made in infrastructure around the company

really put them in a strong position to win in the future. But the other, the other exciting pieces

to delve into not only consumer marketing, but business marketing. So cyber security and

connectivity and thinking about enterprises and what they need will be a, let's say a new

muscle memory for me. So very, very excited about that. You can help JLR. And as a T-Mobile wireless

user, no shade to T-Mobile. I can't stand T-Mobile. So maybe I need to make this shift. I'm going to

help you out, Sam. I'm happy to rise. Hook me up. Hook me up. All right. So let's go back to Nissan

for a second. So a couple weeks ago, or several weeks ago, Vinay, you were in Vegas and you laid

out your plan to dealers there as part of the Nissan meeting. Dealers have believed in that plan

skeptically, but that they've rallied around that vision that you have and the steps you've already

taken. So given your departure, what's your message to those dealers that were in that room?

Presumably, you knew the news. They did not. But you put forth that vision. What would you

say to those dealers today? Look, I've known many of these dealers for over 20 years,

and I don't take it lightly. And I knew it was going to be a tough thing to explain. But I have

to tell you, I've been overwhelmed with the notes and texts of support that I've gotten from many

of the dealers that I've worked with for years. My vision is the company's vision now. It's not

a vision that's going to change like you'd change your socks every day with a new person coming in.

I want to speak for a minute about Mike Souter. There's not going to be any gaps between me and

Mike. I've been fortunate to have known that he's coming on board. So before he was even announced,

I've been spending time with him, transitioning with him, sharing the vision of how we're going

to elevate this brand, the investments that we're making in the product, the simplification that

we've executed under Christian and my leadership to really simplify and get the dealers focused on

one primary KPI, which is retail sales, getting the marketing focused on the car as a star. That's

EDO is a company that looks at marketing effectiveness. We were bottom three in the industry

in mainstream brands of marketing effectiveness. Today, we are top three. We're top three because

we've put the focus on the product. We've put the focus on the features that are drivers of

consideration. And we're telling the story of what we call QDRS, quality, durability, reliability,

and safety, which are the hygiene factors for this industry. And I think a lot of those things

have gotten lost before I came back. And now they're squarely in the bull's eye. None of this

is going to change. Mike is going to embrace this and run with it. This is something that he and I

have spent a lot of time transitioning on. He had 10 years with Nissan before coming back just like

I did. Mike ran global after sales for Nissan. That's no small feat. He's worked in the US before.

He knows the market. He knows many of the dealers. Look, I think he's the right guy. And especially

with Christian as the common denominator, I'm really, really confident that this vision is going

to stay intact. The product investments are already underway. We're investing in the hybrid

system that we call e-power hybrid. It's coming here next year. That's all on track. The investments

we're making on infinity. And I've said a long, long time now that Nissan cannot be strong without

a strong infinity. You have to have the luxury mark there. That's where you can take platform

sharing and create extra value for the customer and extra value for the company and the investors

by virtue of incremental margins that are available in the luxury space. All those investments are

moving forward. We have $30 billion of liquidity right now, and that money is being used towards

investing in the product pipeline. Let me ask a couple of tough questions. I'm going to pivot

these as these are some of the things that I hear other dealers say and speak about as they

talk about your departure. First thing, some people are saying, hey, the name knows something

that's going on and it's jumping before bad news hits or a pullback happens, that there's something

that you're walking away from that's preventing you from staying. What would you say to the

dealer that says that? Well, I would invite any of those dealers to contact me and have an honest

conversation. I'm a 24-7 guide for dealers. I always have been throughout my career,

and many of these dealers have- I can vouch for that, by the way. You'll pick up the phone at

any time. Any dealer can call me anytime, and I've always taken the calls, and I will continue to

take the calls because I still believe in these two brands. Christian is a dear friend of mine.

I think he's one of the best in the business, and he is going to continue to drive this company

in the right way. To those who say that I know something and I'm jumping from the Titanic before

it sinks, look, there's people who think the earth is flat still. There's people who think that

there's conspiracy happening left and right. I can tell you this is personally driven, guys.

In the end, I'm not going to lie, and I don't feel bad about this. My family comes first.

Everybody would say that. I will tell you, when I first took the job, it was under a

different leadership regime, and the idea was you can commute to Nashville, doesn't need to be all

the time. In my gut, it didn't sit well with me, but I said, look, it's a big opportunity to come

back and help a company that I love, so I'm going to try it. I don't think it works, guys. I don't

think remote work is the way. You've got to be present. This business is so hands-on. The idea

of solving problems in between the meetings at the water cooler, between walking from one place

to the other with your colleagues, that's the real deal. That's how it has to happen. All these

companies that are asking their people to come back full-time, like Nissan has done for all the

right reasons, that's the way forward, and I believe in that. While I appreciate and understand

that there's going to be people that feel a certain way and think that it's not true, guys,

I'm being honest with you. Last tough question, then we can get on the fun stuff. Just one more,

I promise. There are multiple dealers that would also say, look, one of the challenges

that Nissan has is decision-making ultimately is made in Japan. Given the historical issues with

U.S.-based leadership, Japan just doesn't have the confidence to allow full command control

to be given to U.S. leadership, to make the tough decisions, to enact the tough changes,

to really impact change. You've been doing that. You've been making massive change over these past

12 months. What would you say to somebody that says the Japanese leadership does not fully trust

and or empower U.S.-based leadership? First and foremost, I'm the kind of guy who's always going

to tell you when I agree with the criticism and I agree with the criticism. I think Nissan,

up until, let's say, nine months ago, was still that. I think I was told that it had gotten better

from the time that I had left in late 2013 to the time that I returned in January 2024.

I don't think it had gotten better. I experienced that for my first, let's say,

nine to 12 months on the job. Way too many decisions were being trying to be asserted or,

I should say, trying to be made by the shock collars in Japan. That's wrong. The power of

a brand is here in the region. That regime is gone. Thank God they're gone. I'm not going to name

names, but there's certain people that they had no right being in the job that they were in and

they're gone now. Ivan Espinosa. I want to talk about him for a few minutes. Ivan is a career Nissan

guy. I knew him the last time I was here. He was named CEO in late last year, early this calendar

year. That's now how he operates. He has empowered me up until now and will empower Mike. He's

empowered Christian to make the decisions for this region. It's one of those things that I

recognize that this company has operated for so long in a certain way that there's going to be

some dealers that won't believe it until they see it. Now, they've seen some of the changes

that I've made with respect to simplification, with respect to product lineup changes, with respect

to how we market and the things that we're communicating. When I first got here, we had a

global executive who was trying to dictate what messages are important for the Nissan brand here

in the United States. I call bullshit on that. Mike, stop. Don't worry about it. I got this.

I got this with my team. With Allison Witherspoon now in the job leading marketing for the US,

she understands. She is free of all of the controls that used to come from Japan and

we're operating the way we should have been operating all along. I think there might be

some inertia, some organizational tendencies at times to revert back to central control,

but that's why we have strong people in the jobs that we have, like Christian

Mitesuter, Allison Witherspoon in charge of marketing, a guy named Arcangelo LaFaro who

grew up in the Northeast region, went to Japan and then came back. He's our head of sales now,

Tiago Castro leading Infinity and doing a great job. I built a fantastic team. I handpicked these

people and I told Mike, dude, you have a magical team in place. Keep that magic going. Keep that

mojo going. Keep empowering them. This is how the brand, both brands move back to where they need to

be. Your personality, though, played a big part in your ability to get things done and execute.

I would assume the confidence and the support you got from Japan in making the tough decisions

you've had to make in the U.S. Your replacement, will he be similarly suited to you in continuing

to make those tough decisions? You've simplified incentive programs. You've gotten back on the

bandwagon with Tiago on increasing models for Infinity and other things. Those are tough

decisions that go against maybe what global may have looked for. How does your successor

continue what you've done? Well, first and foremost, I would invite you to ask him to come

onto the show. I really think it would be good for you guys to get to know him. It'll be a great

way to accelerate the re-production of Mike. Let's do that if we can. He genuinely loves

Nissan and Infinity. He's a results-ridden leader like me. He's impatient like me.

So I think we share a lot of similar qualities. I will admit to you, our experiential profiles

are very different. I came up in marketing, mostly marketing and sales. He's come up on the aftersale

side. But I think the thing that I really appreciate about Mike is he knows that he has some leaders

that are pretty good at what they do. And if it ain't broke, don't fix it. Guide them, of course.

But we've got a team of leaders that are moving the business in the right direction.

And my advice to him is grab onto that wave, ride that wave. You're going to need to course

correct as a leader. And we're going to have new challenges that pop up. I mean, we had a big one

pop up in April with Tariff. But we found our way through it. We maximized our industrial

footprint here in the United States. We've maxed out production in Smyrna and Canton,

or getting there in Canton. And you have to pivot along the way. But I'm really confident.

I'm really confident he's going to keep it going. He's a big personality like me. But

he's a little different in what his experience has been. But he's very competent. And I think he's

very excited. So you mentioned Tiago, your counterpart on the Infinity side. We've had him

on the show. He's very transparent about the plans to bring that brand back to robust production,

adding a model every single year for the next multiple years.

When you went to him and you said, hey, I'm leaving, what was Tiago's response?

Yeah, it was tough, man. Look, telling my team earlier this week was, oh, god, it was like I

couldn't sleep before I walked in and told him. But I'm one of those guys, I wear my emotions on

my sleeve. And I think many of them knew that I was struggling to try to, this tug of war between

being in Nashville, being in Dallas, they knew it was tough. And the empathy that I got back

when I told them, I mean, it was a tearful meeting. I'll tell you that Tiago I've known

since he was in engineering. I mean, he came and worked for me in 2008 when I was the

model line director for the trucks, SUVs and crossovers. We developed a very close relationship

when he worked for me then. When he came back, or when I came back, and we were making some moves,

I was the first to say I want Tiago to run Infinity and work for me. I have a very strong

luxury view just based on some of my experience. So it was a great symbiotic relationship.

He's doing great. I mean, he's got the perfect experience of upstream and downstream

responsibility in the past. And he knows that Infinity's problems are predominantly based

in the fact that we, for whatever reason, some prior leaders choke the product pipeline.

But we're making the investments. And we've got a couple of great new products coming in the near

term that I think are going to turn the fortune of the brand around and get the dealers back where

they need to be. Vinay, I have a question for you here. So obviously, Sam, I had my first tour

with Nissan in 2010 and then again in 2023. I think there was a collective sigh on Wednesday as the

news broke for obvious reasons. So this is the platform for all retail dealers. If you had something

to say to address retailers, dealers out there right now and give them that hope that every

Nissan store is looking for and clinging to, what would you say to them right now?

I would just say that you have a leadership team that is completely, completely embraced the idea

of a retail mindset, which I don't know was the case when I first got here. I should say

rejoin the company in January of 2024. Retail sales is the key KPI. It's what we get paid on.

I will tell you, there was a natural, let's say, inclination to sell to rental fleet companies.

I said, we have to stop that. Our total market share when you include retail plus fleet sales,

our total market share is going to go down this year, not because of retail. Retail will go up.

Retail is going up. We gain a point of retail share since December. We're at the 5% mark.

We've got to get to 6%. That is the goal. Christian has said that. I've said that,

but rental fleet sales are coming down drastically. There's profit that can be made there.

It's still decent profit, but it's not right for the network. We have to get the network to be

profitable, more profitable than they are. They're already up 50% year over year, year to day,

but they're not where they need to be. I think we can sell more cars to the retail channel,

which means that we're going to have to forgo some of the production capacity that was being

diverted to the fleet channel. That also means getting the product right. That's where I think

we've spent a lot of time trying to dial in the product lineup, getting the features at the right

level. We have these charts called red, yellow, green charts, rainbow charts, where we look at

the top 10 features for each vehicle in each segment. For example, in the rogue segment,

heated seats. Very important for those of us who live in the North. Well, when you compared

against RAV4 and CRV, you had to step up into the grade walk like $5,000 before you could get the

option of heated seats. That was a problem. It was a big problem. We fixed it. We brought it way

down in the grade walk. We're right in line with what RAV4 and CRV. We took our eye off the ball

in the past, guys. That stuff's not going to happen again. We're focused. We know what needs to

happen. We know that sales per outlet is extremely important. It can't come fast enough. We know that.

It's a long-winded answer to your question, but retail is priority.

So it's interesting. Dealer profitability priority, retail priority. You actually

incentivize your reps to, it's tied to dealer profitability. There seems to be a difference

in profitability based on geography, right? So maybe less, maybe Midwest, maybe more Southeast,

maybe more Northeast. What are those differentials? What do you think plays into the differences

in dealer profitability? It's a really great question, Sam. I think leasing is a big part of that.

I think the markets where we're not as heavy on the lease channel are where we do a little bit

better. And I'll be very frank with you. Our residual values are not where they need to be.

Part of that is a brand deficit. We develop a car. It's very competitive. It's got all the features,

all the specs at the right price. And we just don't get the same residual that the equivalent

Toyota or the equivalent Honda will get. That's pricing power that needs to come by curating and

nurturing the brand in the right way over time. It's not going to happen overnight.

So consequently, we have to take these lower residual values,

which means that it's more costly for us to do a lease transaction in some markets.

And when the company is trying to nurse itself back to health, get profitability

back where it needs to be, get free cash flow back where it needs to be,

it's not happening fast enough. But this is where some of those product changes

that we're making to streamline, optimize the product lineup with the right features at the

right price, at the right grade level, that's starting to show improvement in successive

generations of product. We're seeing six, seven, eight percentage point gains in 36-month residuals

when we go from an outgoing model to the new model, like the new Armada as an example,

which is a ground up redo, the new Kix, which is a ground up redo.

And as this gets into the product pipeline, the leasing situation is going to get better.

We know that that's probably one of the biggest reasons why we see discrepancies region by region.

I think the other fact is, we don't have our hybrid yet. And there's certain parts of the

country where hybrids are the new ice, you know what I mean? Like hybrids are the minimum expectation.

And when you don't have that, it's hard to compete in the West more so than it is to compete in the

South Central region where people don't care about gas prices as much. So again, we have fixes in the

pipeline that are coming. They're never going to be fast enough because product development

is like moving the Titanic. It takes time. But the changes are coming and they're going to improve

our ability to play on a level playing field across the country.

Well, Vinay, we appreciate you coming on the show and sharing this perspective and breaking

this news, AT&T's where you're headed. Michelle, who works on the CDG team, just made an interesting

comment and I echo this. You are still talking Nissan in we. And again, when you think about

the rarity of a senior leader having so much ownership that you're willing to deliver bad news,

right? Job change. And yet you're still here as we, still advocating, still representing, still

part of the culture in Nissan. I think that says a lot for you, the team that you leave behind,

the legacy you leave behind. But then also your commitment to that brand today and into the future.

So again, the car guy in me wants to say, hey, let's look at the AT&T deal. Let's look at the

Nissan deal and figure out how to keep you in the Nissan deal. But I'm sure bigger powers have

already tried that. So Lauren Klein says online, he'll be AT&T's golden boy now, referencing our

headline. And then Kim Norland says, great energy and great comments. But family first,

that's a legit reason. So we appreciate you coming on the show to share your perspectives.

We look forward to talking to your successor. And any closing comments as we wrap up?

I would just keep encouraging you all to do what you're doing. Don't always take what certain

other legacy outlets say is the truth and reprint it. I didn't quit. I resigned responsibly.

We'll retract that. We'll pull that thumbnail for you. There was some debate on that this

morning. You're right. You're here still. Trust me, the journalist who wrote that at first heard

from me on that. So we'll just leave that to you. But in any case. So when's it official, Vinay?

Because you still have your Nissan? Yeah, I'll have Nissan email and phone until the end of next

week. And then I start the new gig a little later this month. So at the end of the month. So

it's been a pleasure, guys. Thank you for the opportunity. And I wish you all the best.

Lots of ongoing success. Vinay Shahani, former head of U.S. marketing sales.

Thanks for being on the show. And best of luck. Thank you. Thank you. Bye-bye.

Wow. So breaking news here on the CDG side, AT&T is where Vinay is headed. And when you think about

great leaders, when you think about good leaders, he just has a lot of those qualities people want

to follow. So wish him the best of luck. And to Nissan and Infinity and those brands, he's led

who he attributes his qualities to. I just hope that they continue the trajectory he started and

that they're able to continue the journey and realize the vision that he had. So, all right.

Yuli, let's talk Toma. Toma, most voice AI's frustrate customers and waste everyone's time.

Only Toma customizes AI agents to your dealership. So calls actually get resolved. That's why

dealer groups trust Toma to automate their phones. Visit toma.com forward slash CDG to learn more.

Or you can click on the QR code there. And a huge thanks to Toma for supporting today's content,

including this conversation with Vinay and the up and coming conversation.

All right, Yuli. I'm excited to share this news as part of our breakdown today.

CDG News is presenting a very special edition of the breakdown newsletter this week that pulls

back the curtain on five real-world chat GPT workflows dealers are leveraging for smarter

decision-making, data synthesis, instant store level insights and much more. You'll get the

actual prompts. It's not like behind a paywall. You'll get the actual prompts. You'll see how

operators are wiring them into their processes and walk away with tactical ideas you can test in

your own store. It's live right now on news.dealershipguy.com. You can go check it out. And actually,

one of the cool things that Yosi has set up as part of the CDG organization is a feedback loop

unlike any other. We get feedback on the show which we invite and we want because it makes us better.

The feedback on this chat GPT tool has been astonishing. We've got CEOs of large dealer groups

messaging in saying, hey, thanks for giving us these actual prompts. They work. And it's been at

the topic of many daily dealer live shows is like, what can you do with chat GPT from a practical

standpoint? What can you do? What shouldn't you do? And you've got it all right here. Props to Anna

and the entire team at CDG for helping to create this. So that is great stuff.

All right. Let's go to our last guest today, General Manager Boulevard Ford of Millsboro,

JB Burnett. JB, welcome to the show. Thank you guys for having me.

You're fresh off of a very long flight, you said. You were on a red eye last night. So

yes, I love my friend. He's still got a bed ahead. I'm 30 this morning.

Yeah. All right. Well, before we get into the topic, you're here to discuss.

Answer our banner question, which is how's biz and tell us a little bit about yourself in the

process? Yeah, for sure. So I've been been in the business since I was 20 years old. I took

over my first car dealership and I was 23. Worked for a lot of different manufacturers at this point.

But I found home here at the Preston Automotive Group been here now just over 10 years. And I run

their Chrysler Dodge Jeep Ram store, their Ford store in Millsboro, as well as their Hyundai store

in Millsboro. So a lot of exciting stuff where we just built a Lincoln Vitrine as well,

and working on construction for our brand new Hyundai facility. So just a lot of exciting

stuff. And, you know, business is business. I think we all, I think we're all sort of feeling,

you know, some of the brands and Vinay touched on a little bit with market share and,

you know, being a CGR dealer is, you know, challenging these days. And so fortunately,

Ford and Hyundai are pulling strong. And so it's been, it's been a really good experience.

Very cool. Well, you're a part of a new product and project on the Ford side.

You're opening a new facility that Ford just designed this or announced this design recently.

Tell us a little bit about the facility, the announcement and what you're working on.

Yes. So Ford just announced, Elena Ford just announced last week at the dealer meeting in

Vegas, the signature 2.0 facility. And this is Elena's passion project. It's, it's different.

It really is guys. And that, you know, being, being coming from an old school car guy mentality

that I was, I was different, right? Yeah, this, this one's going to be, this one's going to be

really special. So it's a, it's an open concept. Yeah. It's, it's an open concept. It's no cubicles,

no desks, not a traditional sales process. So it's, it's a, it's a concept.

Wow, look at that showroom and it's like you're, you're visiting somebody's living room and,

and it's sort of where do you want to sit and how do you want to start the processes?

You know, for years we've done, you know, follow me right this way to my desk. And, you know,

that kind of a thought and, and this is just, this is just different. It's you step inside,

you see a, you see a big barista bar area that they call the hub. And that's sort of where

you start your journey, grab beverage and, and then it's, you know, where would you like to sit?

Would you like to sit out here in the showroom or would you like to sit in one of the open spaces or

and where do you want to start your journey? Yeah, I've always said, you know, meet, meet people

where they're at. Years ago, I had this epiphany and I said, you know, I don't think I would buy a

car from me. You know, dealership for three hours, four hours. And I just, I don't think I would do

that. And so I really started Streamline on that process years ago. And so this part of it really

brings it to life. This makes it, you know, based on the guest's journey. So is this a ground up

rebuild or is it a remodel? So it's a ground up rebuild or a complete ground up. We actually,

we'd started the process already. And then Elena came and visited

about a year ago and she said, Hey, we're working on this new project. And we raised our hand and

said, Hey, we want to be the first ones to do that. And so we are the first signature 2.0 facility

in the world. The next facility is going to be coming up in in South America and then and then

the EU. But in the United States, we're going to be the first one for for a little while.

How are you chosen as a hand raiser to create the first facility? And how much does it cost?

I over and above a standard Ford facility. That's the question.

So I don't, I don't know that there's a huge cost difference. Honestly, it's probably, it's probably,

you know, less than what a traditional facility would be. It's just so much more open. There's

not walls. There's not, you know, and that's one of the things is breaking down the barriers

between the departments. And there is no service waiting area or sales area. It's just one area.

And then our chairman and founder, Dave Wilson, senior was Ford Council President for the last

year. And I think that probably, you know, that probably got us a little bit of a heads up and

a little bit of an opportunity to to go ahead and be that hand raiser. So you went from a facility

that was how many square feet to this one? Is this one bigger than your prior?

So this one, this one's 44,000 square feet. It's got 30 traditional service bays. It's got

five indoor detail bays. The current facility that we're in, well outdated. I mean, we're

coming from a 14 bay facility with a showroom that's probably every bit of 2000 square feet.

And so we're really, really upgrading in life. And I'm going to tell you, it's about eight miles

away from where we're coming to and the area that we're coming to. When you think about

having the conversations with the guests and making sure that everybody knows where to come

once the doors close down the street, you know what I mean? There's a lot of logistics going

into it. But one of the cool things about this project is Ford's telling me, hey,

this is what we want it to look like. We want this experience. But what they're not making

me do is follow certain steps to get there. They're saying, hey, help us create this and help us

curate this experience and talk us through the process while we go. We're part of this pilot

program. It's only a select number of dealers in the world. And so I get direct communication

with Elena's team and I get to sort of, you know, hey, this isn't working. This is working.

Let's try this a little different. So how many more service bays did you get prior

facility to the new one? So we picked up 16. Yeah, that's awesome. That's awesome. Picked up 16.

And I have 10 texts lined up for the further. That's what I was going to ask. Yep. Okay. So

you went out and recruited new texts. That's awesome. My service manager did a great job.

So JB, we would get a ton of criticism if I didn't ask a couple of questions about Ford. So I

want to go there and then we'll come back to the facility. So you were at the meeting in Vegas

here recently. And I think a lot of Ford dealers coming into that meeting expected Ford to address

a challenge that is out there right now, which is Ford is the number one most recalled OEM

in automotive by not a small margin by leaps and bounds. And for what I heard I wasn't there,

it wasn't really addressed. In fact, there wasn't a Q&A. Tell me about that. Given the

large investment you're making this brand new facility, what's your take on the recall situation

and the response of Vegas? Well, I will tell you, it was addressed. I mean, Ford knows what they

need to correct. And then they were very blunt about it, honestly. They came up and they said,

hey, we know we have some challenges and we're working through those challenges.

But they had the commitment, again, to the dealer body that says, hey, as long as we

hold up our end and fix the product and that kind of thing, the dealer body is going to

hold up their end. And I'm going to tell you, especially being a multi-franchise general

manager, Ford has my heart. They truly, they're probably the most transparent brand that I

represent. They don't have problem having hard conversations. And they hit a head on. And so

when you look at some of the other OEMs, I mean, not to point fingers, but some of them

aren't that transparent. You know what I mean? Yeah, sure. Nissan showed a pretty profound

amount of transparency today. So that's interesting. Give us an example of the transparency on the

Ford side. And I think that's an interesting thing coming from you, where you've got Stellanus,

you've got Ford, and you've got Hyundai. So you've got three OEMs that kind of span the

spectrum. What's an example of Ford's transparency? I mean, one of the things I'll tell you,

when they talk to us and they address us as a group, there's very little hiding behind

paper. Everything that comes out there quick. Their incentive plans are consistent. Everybody

else jumps. I mean, Stellanus just made a change last week in the middle of the month. And Ford

that says, hey, we're going to pretty much put it out there for a quarter. And we might make

some adjustments here or there. But overall, you know what to expect. And I think that's

probably the most important part. JB, I got to tell you a props to Ford for just leading the way

in the whole tariff thing, right? They got to the pricing for all first. And then they had the

president of the United States announced an OEM factory program, right? And then others tried

to pile on to duplicate it. But I think Ford definitely had the advantage of that. Ford has

a history of doing that even back to the 08 situation and how early they were getting funding

and whatnot. And that's one of the things we'll touch on, too, is that they found that message

and you find where real life meets the car business. I mean, that message really,

from America for America, that message hit home. Strong. Yeah. So DNC says 112 recalls here today.

I have pressure tested that. That's probably the fact. If he said it, then he also says,

dealers don't mind all the recalls because it feeds their service business.

Yeah, dealers don't mind. I do question what it's doing to the brand image from an AFI perspective.

I think that is true, right? Customers kind of want an understanding of what's driving it. I

guess that's what I haven't quite heard yet. We'd love to have somebody from Ford on to talk about

that. What from a QC standpoint is kind of driving that to the dealer's great point, right? Well,

it's service business. Stop sells are no fun. But yeah, on that note, I mean, when we're talking

about recalls, we're talking about a backup camera with a glitch. We know we're not talking about

anything that's serious. Yeah. And so yeah, we might not have a fix for a backup camera with a

glitch. And that might keep us on hold for a little bit, but we're not talking about real

major recalls. We're talking about little things that we can sort of get around. You know what I

understood that talking forward, people are going to say, Hey, why don't we go there?

Let's go back to the facility. It's a beautiful facility. It does remind me a little bit of an

Apple store, right? And it seems like that might be part of the intent with it. I understand that

it's possible for you, they're giving you the tools, the technology to do a tablet based

transaction from start to finish. Tell us a little bit about what that is and what technology drives

it and what does it look like, JB? So I spent a lot of time on this one because they said,

Hey, we want it like this, but we don't know exactly where to go. And so I interviewed five

different platforms for this technology. And I settled on AutoFi. AutoFi was the most capable

tool that I found to be able to transpose your digital retailing experience to the showroom

experience. So whether you started at home, whether you started in the dealership,

you had that same flawless experience. And then the sales associate at that point has sort of

direct control over the deal. So obviously the management is going to set the pricing or the

trade or that kind of thing. But when it comes to, okay, you want to see it with $5,000 down or

$10,000 down, you want to see 72 or 84, we set the parameters behind the scenes. And then they can

play around with, you know, not running back to the desk because they want a different down payment

or something like that. So it keeps it just a lot more of a clean transaction, a lot more

transparent. And that's I think what we're really going for is the transparency is keeping it easy.

So with the new facility, JB, they're not dictating the technology used to get there,

but they're encouraging that you find and implement technology. So you identified AutoFi and Lauren

Klein on Line says AutoFi is a great product. What are some of the other technologies that you

looked at? And you saw AutoFi was able to give that continuous experience across the board better.

So there's a couple of car now or A to Z, but they're really good digital retailing tools.

When it comes to transporting that to the showroom and being able to really have a showroom

experience as opposed to working a traditional deal, as we all know, AutoFi really, they just,

they killed the showroom part of it. And so that's, that's what sent me over. I had,

I had two demos with them and, and just everything I looked at, they, they were the tool that made

sense for, for what we're, you know, what we're trying to accomplish. And that's where, where the

sales associate and the guest really spend the whole time together. And there is no, you know,

guy behind the curtain or something like that. I think that's, that's really what we eliminated

is they're going to end up being a finance process to this, or are they going to stay

with the salesperson? And I mean, you keep referencing that Ford is kind of really open

to this, or are they dictating this process? They are not standard of what it's going to be.

So that's one of the coolest parts about this is that it truly is, you know, I get to sort of

design it from beginning to end. And, and so on the finance side, I'm going to start it not being

that way. I'm going to start it as a traditional process where, where, you know, you go through

the experience with the sales associate, you get to finalize numbers and everything. And then you

do visit a finance manager and, and finish that process. But, but auto fi, I mean, all these

companies, they have the ability that with the right team and the right training, it could be

a one stop shop, you know, beginning to end. Who's your DMS in your CRM provider?

CDK for DMS and then VIN solutions for CRM. Now, auto fi is going to probably take a big part of

what I'm using VIN solutions for, you know, the desking side, which traditionally we've done

through VIN is going to be done through them. And so, so it's going to be the coolest thing about

it is it's going to be super fluid. And I, and again, I don't know what the next day is going

to bring, but I, it's going to be fun to sort of experience it and then give that feedback back

so that the next Ford dealer that decides, Hey, I want to go this direction. I could maybe have

that blueprint for them. Yeah. And, and when do you go? When do you, when's your grand opening?

When do you open the doors? So we open October 2nd is going to be our launch date. So we're

going to be finished shortly, but just with the end of the month and the move. And again,

one dealership being eight miles away, it's going to be a little, you know, a lot of logistics.

So we want to push it just to the beginning of the month. Do you know what Ford's plans are for

this new 2.0 facility? Is it to, to, to roll out quickly? Is it handraisers only? Is it what,

what's the strategy? I think at the time, right now, I think it's just in its infant stages. And

we want to see again, this is Elena's passion project. And it's truly at the heart of her DNA.

It's, you know, you've referenced an Apple store. It's truly different than a car dealership.

And, and I think that's what we're going for. And I think if they find success in,

in my facility and, and maybe a couple of the other pilot facilities around the globe,

I think you will see a little bit bigger of a push right now. It's, it's not a push. It's,

it's, you know, let's, let's get it up and run in. Let's, let's try it. This is a different

way to do business. And let's make sure that, I mean, I think the guest is going to appreciate

this kind of business, you know, transparent, clean, easy, not the guy behind the curtain,

but, but, you know, we'll, we'll see what the market provides.

The litmus test for that is, would you yourself buy a car from yourself there? I loved your,

I loved your entry into this topic earlier. So I'm telling you, and I, and I think I can make it

at this point where, I mean, we, we, we know there's, there's several kinds of buyers, right?

But there's the guy that wants to do a hundred percent of it in the showroom for eight hours

and grind. And then there's the guy that never wants to step foot in the show. And so if I can

just find wherever you're seeing way less of a first guy going forward. Yeah. I think we're

going to see a lot less of the first guy. Yeah. So will you be one price JB or still negotiate?

So it's funny you bring that up. I've actually, I'm considering that option as well. So I think

what we're going to go into it is obviously internet pricing posted, no BS, no crack rebates

or any of that stuff. And we're just going to open every deal there. It's going to be,

it's going to be clean. It's going to be, you know, we can't, we can't open it differently

with this, with this process. We have to be really transparent. So we have to be aggressive,

but obviously still maintain margins. Yeah. JB, we got to have you back once you're in the facility

and you've got some track record behind you so we can actually talk dollars and cents. And what is

the, how does it drop to the bottom line? You know, you've got a beautiful new facility. There's

an expense load associated with it. The big question is, is does that facility help you

with all the new technicians to handle recalls, everything else? Does it help you drop more net

to the bottom line? And we would love to follow up with that. For sure. One, one final question

online here before we move on. So Roland Lynn says, do you want Ford to build another ice

midsize sedan? Do you miss the market segment? What would you say to that?

I mean, I think there's, I think there's still a market for that. And I see that more on the

Hyundai side, right? So Hyundai is probably my, my brand that, that really still sticks with the,

you know, with that, that size vehicle where everybody else is transferred over to an SUV

or a truck lineup pretty much completely. But I think there is a market there. And I, I mean,

I think that would be really cool. I haven't heard any whispers about anything like that, but,

but I do think there is a market for, for that midsize sedan still.

Yeah. Well, JB Burnett, General Manager Boulevard, Ford Millsboro. Thanks for joining the show.

And sharing your perspectives on all things Ford, including this brand new 2.0 Ford facility. We

wish you luck and, and successes you kick it off next month. And again, we'd love to have you back

to hear your results, our JB. Yeah, I appreciate it, guys. Thanks for having me. And I love to,

you know, once we get, once we get on the ground and, and figure it out and get the kinks worked

out, love to come back and share it with you guys. Awesome. Thank you.

Well, good conversation today. I mean, we broke some news. I'm sorry to see a commentary online

about Vinay's going to AT&T. I'm excited to get an AT&T phone because no shade to T-Mobile.

I have a very difficult time getting anything anywhere with them. But regardless,

yeah, a few comments coming online, Lauren Klein talking about AutoFI and the Ford 2.0 facility,

very one point friendly when you think about that. Dan C says, thanks guys for another solid daily

dealer live show. We can't go can't go too quickly. We thank you, Dan, for watching us. Yeah.

And actually, to all of our listening audience, again, this is the place where automotive speaks.

This is where we learn from each other. This is where we grow. And that invite back to the,

to the website for CDG guests. If you're a dealer, if you have an opinion, we want you on the show

to share that opinion, that best practice we all learn from each other. And on that note, it's

Friday. We'll be back on Monday. In fact, we're yet the Ziggler Auto Group are opening a brand

new Subaru facility. It's a remodel ground up in Colleen, Indiana. So I'll be broadcasting

Uli live from Fort Wayne, Indiana in advance of that open house. So if you want to come by and

say hi, please do that. But to all of our audience and Uli, thank you for watching the daily

deal live. We break down the biggest moves in the car business as they happen. Don't forget

everybody. We're live every Monday, Wednesday and Friday. So if this is your world, hit like,

subscribe, turn on those notifications so you never ever miss a beat. And everybody will see

a Monday for our next episode live for Wayne, Indiana. We'll see you then.

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