Intro with Kyle Mountsier and Steve Greenfield [Music] it was a little it was a little on the music today I don't know where that came from we got the we got halfway through the song on the music but uh welcome into the show this morning that wasn't the normal start as you know it it wasn't for me either I don't know what's going on but welcome to the show Steve Greenfield we are we are live and ready to rock a little caffeine for the morning here we go man that just came in hot I I don't know what was going on with my trigger pad you know it's it's a it's a weird one every morning but uh Man Steve uh thanks for joining us this morning I know that you're uh you're always on the Move where are you today some people may recognize where you're at yeah you might recognize that building behind me I mean my head's in the way here but uh that might look familiar to some folks they call it the pagota up here not surprisingly but um maybe we should have people guess where where I am today so somewhere in the Midwest and it involves racing I like it I like it well we we'll leave it for the guests and uh if you know where he's at and you're only listening to the audio hit us at crew at aod maybe we'll like send you a sticker or something we'll see yeah good good good good plan there you go hey uh before we get into the show today just want to mention um you know we've been dropping all of these podcast episodes uh on our in the dirt podcast um uh from the namad conference In The Dirt Interview with Julie Herrera and yesterday we dropped a a podcast interview that we got to do with Julie Herrera who is an incredible dealer uh one of the largest Texas one of the largest Toyota dealers in the country um talking about giving back to others and just her passion for um things that are all about people so Julie is one of those people after our own heart do you know Julie Steve I don't I don't I heard her name a number of times but I don't think I've ever met her you would absolutely love her and and uh and she she's smart as can be but cares and has an incredibly huge dealership so you can imagine what it takes to be one of the largest Toyota dealerships in the country so uh all right let's get into it we've got we've got a few stories for you here this morning the news Cycle's a little bit tough but you know we'll get VW CEO Faces Down Germany Union to it uh V Volkswagen CEO Oliver Bloom is on a collision course with Germany's powerful labor union IG metal as VW considers job cuts and plants closures to reduce costs uh they may be ending a 30-year old job security agreement and Clos these plants in Germany um they haven't closed a plant since 1988 um and the union is vowing to quote fiercely resist any closures um VW Works Council head uh Daniela cavalo says the upcoming worker management meeting will be very uncomfortable we know a little bit about that here in the US analysa Mathias SMI com commented if Bloom can make the move stick Decades of past CEOs will feel Vindicated so there's a little little bit of uh tough blood over there in Germany going on right now one that we kind of know about a little bit yeah I mean we're gonna see more of this globally right I mean I think that the compounding of the the threat of the Chinese coming into markets like Europe and uh you know comb combined with the questions around the movement from Ice to electrification and uh you know a lot of these manufacturers volkswagan included have to have step back a few steps right I mean Volvo we heard earlier this week as well but um you know that combination and you know Volkswagen most notably you know has spent billions of dollars on their software Division carad and now they've laid off you know a thousand of their software developers so I think that um the big automakers are going to be feeling the heat here they're going to need flexibility with labor and that's going to run head long into some of these unions and uh you're going to see more of this this is only the beginning yep yeah I I agree and even as like the EU is starting to totally change their tune on on how they're handling tariffs and and bringing vehicles from Chinese manufacturers including Tesla um so there's just going to be pressure from out from net new oems because uh the the EU is willing to kind of play ball and reduce costs for those uh coming in into that area so you're gonna see yeah I I think you're going to see more and more of this like cost cutting measures uh and potentially unions you know we we saw this uh last year with the U aw and then you know actually there was a story today that the uh the Altium plan in Tennessee is also is partnering with the UAW so you got something different happening on on us soil right we're going to see this battle over these next couple years for sure totally agreed totally agreed uh speaking of a little bit of a battle How Dealerships Can Improve Cybersecurity Segway consumers are starting to have a battle in their minds with whether or not they want shop online it seems like cyber security is becoming a lot more important uh we know a thing or two about that in in Auto um with 80% of consumers expressing concerns in a survey by Experian the data shows dealerships need to prioritize security obviously in their digital retail platforms as online fraud and data breaches arise um identity theft is obviously a top concern for consumers um the digital processes at dealerships have become targets for fraudsters due to weak cyber security so uh things like digital retail or anything online retailing being targets because of uh the lower security uh measures taken by them um the survey shows that consumers want digital retail tools to take cyber security seriously um things like uh adding physical Biometrics PIN codes behavioral bio behavioral Biometrics security questions and passwords because uh they said um can can CH saram uh I'm going to mess that up uh at experi experience said consumers want easy secure transactions with trusted Brands like Amazon uh interesting that the Amazon word was thrown in there with with retail transactions yeah yeah imagine that imagine that um yeah listen I think that we we've breached Pandora's Box here right this the cdk um pay payout and we don't know what that is but it's got to be in the tens of millions of dollars um to these sort of black hat operators overseas has has opened the the eyes of probably the world hackers around the world to say hey Automotive is a big space right we've had some dealer breaches as well it's they've been a little bit of hush hush but um at this point I think that uh there's G be much more aggressive fishing scams for all employees of dealerships I mean you you know better than me I mean the Deep fakes now both audio and video are getting much much sophisticated so you know if if if a if a BDC rep gets a a voicemail from The General manager and it sounds like the general manager asking them to go online and buy some Amazon gift cards or something this is going to be very very common and uh you know there's gonna be all kinds of challenges I think from fishing scams email fishing scams Etc and we've only just started see seeing the beginning and I think now the hackers around the world suddenly say oh Automotive interesting you know it's like you've got a lot of Frontline employees at a dealership who aren't necessarily schooled on state-of-the-art fishing scams that are vulnerabilities into their systems and I think that uh the software vendors out there should be very concerned uh dealer dealer group should be very concerned and um I think honestly as sad as it it sounds we've only seen the beginning here yep well and if you think about even just the digital retail transaction this desire for an end to-end purchase process that's available online right just the you know what's the login authentication what's the documentation authentication are we using things like clear are we using things like Bank connect um that have a lot of authentication procedures are we are we requiring tofa in our digital transactions or we you know especially like pass keys not pass words where Biometrics are involved um like these are things that I think especially software providers and and then dealers should be asking of their software providers if they're developing to because you know when you get that golden you know that golden thing in the sky of here's a transaction and it can be submitt to a bank and loan executed on a clean transaction like what what was done to put in place the measures of of of risk on credit and of of the transaction data and all of that so uh it it stretches in both ways and and something we should just be keenly aware of but like you said it's it's uh it's Pandora's Box which is it's a scary thing it's a new world it's a new world out there for sure y speaking of being a new world sigue did you ever think your car could be impounded not for something that you did Oakland Police Impounding Teslas To Retrieve Sentry Mode Footage wrong but someone else did wrong uh Tesla Sentry mode is gaining attention in Oakland uh as police are utilizing the technology to Aid investigations initially designed to catch Tesla related crimes it is now helping police capture General crime scene footage so Tesla launched the century mode in response to break-ins in 2018 and 2019 and uses Tesla's exist in cameras to record the car uh record around the car while it's parked um it's been pivotal and solving like vandalism and other other car non-car related crimes but now police are Towing Tesla vehicles to retrieve Footers when owners are unavailable so just like can't get the owner go get the car go get the footage um uh Sergeant Ben Thal uh of the Oakland Police Department admitted this practice may seem extreme but jus when evidence is crucial yeah this is like this is very big brother this isn't going to work because okay let let me draw an analogy so hey KY you get a call from the local police department and they say hey you guys were up for dinner last night and at the restaurant there was a crime committed uh can you bring in your phone because we want to log in and see if there's any footage off your phone that might help us with the case I mean it's just not going to work at all right so you can't go confiscate a neighbor's car who had nothing to do with the crime just because they're car happened to be collocated with the crime scene and might have video I mean I could see them going and negotiating with Tesla maybe to get the consumer's uh permission to get video but you can't go like tow a car that was unassociated with the crime so I mean this is goingon to be amazing to see play out but this is gonna like emerge some serious consumer uh privacy rights yep yeah I mean this is this is similar to like anything that um you know that police are trying to get access to from a camera perspective um you know any footage actually uh our producer right now is typing some notes to me that ring cameras uh stopped providing footage due uh to police due to privacy concerns as well um so I think that this this will be reverted quickly um but it's just it's again like the Pandora's box of having basically a device on Wheels now with these with these new technologies in in all of these cars like there has to be regular around all of the technology you know what what data is getting shared with insurance companies we've had conversations about that now video footage it's just going to be something that you're going to see Regulators uh kind of have to get their hands around on who has access to what data and what privacy concerns uh are still lingering out there yeah I mean interestingly enough you know I hadn't thought of this ahead of time but your stories two and three today are intertwined right I mean there there's more data being produced out there which is a good thing to your point you know digital retailing is a real thing now but you know as you know as as Peter Parker's Uncle Ben told them you know with great power comes great responsibility we've got you know bigger data perimeter that can be breached by hackers and uh you know I think it's it's a new world that we're entering so for those that like big government or small government we're going to need someone to oversee these regulations to make sure that as as these devices whether they're phones cars or you know um DM is that dealerships produce more data that were protecting the consumer ultimately from like data breaches yep exactly well hey it's a whole new world and with great power becomes great comes great responsibility you have a great responsibility to not just care for employees not just care for consumers but think about all of these ancillary things that impact your business every single day uh pay attention heads up fun [Music] get [Music]