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Automotive State of The Union
Paul J Daly and Kyle Mountsier don’t just read headlines, they make the most important connections across car dealerships, general retail, tech, and culture. The goal? To help automotive leaders think clearer and move faster in a world that refuses to slow down.
Whether you’re running a rooftop, building a brand, or just trying to keep up with everything shifting in the business of selling cars, this is your regular stop for a shot of news, insight, and a little bit of chaos…always rooted in people-first thinking.
From the showroom to Silicon Valley.
From Wall Street to Main Street.
Paul and Kyle connect the dots, keep it real, and make it make sense.
Learn more at https://www.asotu.com
Automotive State of The Union
Fixed Ops Flex, AI Accelerates Timeline
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Episode #1339: We’re Live from ASOTU CON and are talking about the steady profit machine powering dealerships as fixed ops revenues continue climbing for major dealer groups. We also cover mounting pressure to keep Chinese automakers out of the U.S. market and unpack a new AI report warning companies that speed and adaptability may matter more than perfection.
Show Notes with links:
- Fixed ops continues to be the steady heartbeat of dealership profitability as the latest Automotive News rankings show major dealer groups growing service, parts, and body shop revenue even while the broader market normalizes.
- AutoNation held the top spot in service and parts revenue at $4.8 billion, up 4.8% year over year, while Lithia, Penske, and Group 1 all posted even stronger growth rates ranging from 8% to over 14%.
- Hendrick Automotive Group stood out with the highest average service and parts revenue per rooftop among the top five at nearly $24 million per dealership, proving fewer stores can still mean massive fixed ops performance.
- In body shop revenue, Asbury Automotive Group led the pack at $272 million, though several groups saw declining collision revenue as consolidation pressures and changing repair economics continue reshaping the market.
- Some of the biggest movers in service and parts rankings included Murgado Automotive Group, Young Automotive Group, and Nielsen Automotive Group, while Fitzgerald Auto Malls and Dobbs Automotive saw some of the steepest drops in body shop rankings.
- Masano Auto Group dealer principal John Masano summed up the industry sentiment saying, “I think the more that dealers look at this, they’ll look at maybe concentrating on their core competency — which is sales and service and parts.”
- AI is compressing the timeline between innovation and disruption. A new Tech Trends report argues that companies winning with AI aren’t chasing shiny tools; they’re solving real problems fast, with people at the center of the process.
- Leaders across industries say AI success starts with business outcomes, not hype. Broadcom’s CIO warned companies can “invest in AI and receive no return” without a clear problem to solve.
- UiPath’s CEO encouraged companies to stop living in endless pilot programs and instead “attack your biggest problem” for meaningful impact.
- Western Digital’s CIO emphasized speed over perfection saying companies would rather “fail fast on small pilots than miss the wave entirely.”
- Walmart involved store associates directly in designing its scheduling app, cutting scheduling time from 90 minutes to 30 minutes and driving actual employee adoption.
- The report’s biggest takeaway: organizations built for slow, sequential improvement may struggle against competitors operating in continuous AI learning loops.
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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