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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. I'm Matt Miller and

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Speaker 1: I'm Hannah Elliott, and this is hot Pursuit.

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Speaker 2: All right, we are tariff tariff tariff today, right on repeat.

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Speaker 1: Yeah, I mean sorry, sorry, not sorry, we're talking about tariffs.

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Speaker 2: Well you have to talk about because it's going to

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Speaker 2: change everything. I mean, it's completely reorganizing a century old

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Speaker 2: system of global trade. So and cars are such a

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Speaker 2: big part of that.

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Speaker 1: This is this is like the entry of a bullet,

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Speaker 1: where the entry point is smaller and then the destruction

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Speaker 1: or the chaos is as the bullet moves through. And

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Speaker 1: I'm not a ballistic expert, but you know, I think

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Speaker 1: the ramifications of that are going to be massive. Obviously

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Speaker 1: you're smiling, you're are you laughing at my No?

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Speaker 2: No, I love it. First of all, I do love

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Speaker 2: your comparison. I love fallistics.

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Speaker 1: But yeah, I think you know the fallout is going

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Speaker 1: to be increasingly massive.

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Speaker 2: Well, and we've already seen like crazy fallout. My day

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Speaker 2: job is covering the markets over the opening bell every

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Speaker 2: day from nine to eleven on Bloomberg Television or bloomber

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Speaker 2: dot com. And you know we focus in on single

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Speaker 2: stock stories and on on industries, and I'm always kind

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Speaker 2: of fighting with people who want to cover banks, and

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Speaker 2: people want to cover retail, and people who want to

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Speaker 2: cover energy, and people want to cover industrials, you know,

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Speaker 2: but I care about cars. And the fun thing for

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Speaker 2: me about this tear off chaos, beyond the fact that

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Speaker 2: you know, chaos makes things more interesting, is everybody wants

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Speaker 2: to talk about automakers. Like all of my producers like, yes,

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Speaker 2: now's the time to focus on cars because there's such

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Speaker 2: a huge part of this story.

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Speaker 1: Yeah, I know, it's it's this. I've actually always known.

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Speaker 1: I will cop to that because cars influence everything, and

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Speaker 1: you know, most people don't think about cars on a

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Speaker 1: day to day daily basis, but they are so woven

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Speaker 1: into the fat fabric of our culture. You know, once

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Speaker 1: you start messing with the car world, it's going to

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Speaker 1: have very wide effects. So I, in a weird way,

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Speaker 1: love to hear that all of your people on your

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Speaker 1: side want to talk.

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Speaker 2: Cars well, and we have the perfect guest to talk

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Speaker 2: about it today, Eric Aaron Keating from Cox Automotive, which

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Speaker 2: has done in such an incredible job researching and putting

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Speaker 2: out intel on the business side of the industry. Plus

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Speaker 2: she's a car lover herself. She goes and test drives

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Speaker 2: new cars and has opinions on them, just like you

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Speaker 2: and I do. And they own Mannheim, which does the auctions,

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Speaker 2: the wholesale auctions for dealerships.

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Speaker 1: Yeah, she's one of my favorite people to talk to.

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Speaker 1: And she's just it's funny. She had a planned scheduled

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Speaker 1: vacation this week, so talk about timing for her. She's

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Speaker 1: just I don't think she got much vacation, but I'm

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Speaker 1: so glad she could join us.

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Speaker 2: All right, let's get straight into it. This is Aaron

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Speaker 2: Keating from Cox Automotive. I just have a couple of

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Speaker 2: personally specific questions. I've seen Cox doing great coverage on

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Speaker 2: a number of different issues. One of them is affordable cars,

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Speaker 2: Like it seems as if these tariffs, especially if there

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Speaker 2: were so called reciprocal tariffs, go back into place in

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Speaker 2: ninety days, there won't be any affordable cars for Americans

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Speaker 2: to buy in this market.

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Speaker 3: So you know what I want to just emphasize here,

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Speaker 3: and this is and we were just talking about this

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Speaker 3: as a team this morning. The costs that we're seeing

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Speaker 3: at are coming in are costs and cost only So

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Speaker 3: when we're looking at a tariff, we're saying the automaker

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Speaker 3: or the importer of record, which is typically the automaker,

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Speaker 3: is going to get hit with this twenty five twenty

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Speaker 3: seven and a half percent tiara. How that shows up

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Speaker 3: for the customer completely different story. And honestly, I'm not

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Speaker 3: sure how quickly automakers are going to jump in to

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Speaker 3: jack up the prices on individual models. In fact, I

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Speaker 3: would bet almost all of them will look across their

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Speaker 3: entire portfolio, and you know, the vehicles that you guys

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Speaker 3: are a lot of the times focused on luxury are

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Speaker 3: going to get the bump because profitability is there to

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Speaker 3: be able to absorb some of that TARA so that

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Speaker 3: they can keep competitive at the entry level models and

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Speaker 3: or just the vehicles that are available for lower price.

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Speaker 3: So just because a thirty thousand dollars vehicle is going

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Speaker 3: to get hit with twenty five percent, say like a

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Speaker 3: Chevy Tracks, which we know is completely brought in from Korea,

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Speaker 3: I can't imagine, at least in my head, how Chevy says, oh,

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Speaker 3: let's let's make that thirty thousand dollars car bear the

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Speaker 3: hit of that twenty seven and a half percent, right

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Speaker 3: or twenty five percent. I think they don't have the

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Speaker 3: original MFM, But so I think that that's that's what

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Speaker 3: everyone kind of has to keep in mind, is that

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Speaker 3: the automaker has a lot of different levers to pull

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Speaker 3: to figure out how does this ultimately impact the consumer?

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Speaker 3: Prices will rise naturally demand and supply, and the and

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Speaker 3: the pull a head buying that we have right now,

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Speaker 3: and the fact that inventory might get impacted because OEMs

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Speaker 3: might pull back on producing as much until they can

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Speaker 3: figure out how they're going to deal with the economic

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Speaker 3: challenge of this. But it's not apples to Apple's tariff

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Speaker 3: price increase.

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Speaker 1: All right, interesting, and that would that that would be

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Speaker 1: dependent on the automaker too. Like sare to say, some

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Speaker 1: automakers believe that their customers will be tolerant to a

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Speaker 1: slightly and some may think, no, we're not, We're not

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Speaker 1: going to do that.

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Speaker 3: I think it's going to vary across automakers. I think

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Speaker 3: it's going to vary across segments models, you know, I

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Speaker 3: think maybe even down to regional areas, because again, you're

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Speaker 3: going to get impacted by what the dealer is seeing

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Speaker 3: on the in the market level conditions. Because MSRP is

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Speaker 3: is one way the price changes right. Another way the

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Speaker 3: price changes is list price what gets put out to

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Speaker 3: the consumer.

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Speaker 1: How much is that also related to the breakdown within

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Speaker 1: each specific vehicle of which percentage of components are sourced

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Speaker 1: or made in the US anywhere else? And I asked

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Speaker 1: I of LA like yesterday and that's obviously an American brand,

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Speaker 1: And they're not really able to answer right now.

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Speaker 2: They don't put that on the Monroney because yeah, and

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Speaker 2: the Maroney.

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Speaker 3: What it shows you, Yeah, so the Monroney typically will

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Speaker 3: show you assembly. Remember for Monroney purposes. According to Nitza,

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Speaker 3: US and Canada are combined, even though we know the

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Speaker 3: terror situation is Canada MASA right, well not all of

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Speaker 3: North America, right, because.

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Speaker 4: Mexico is not.

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Speaker 3: So it's when it says it's US, it's you'll see

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Speaker 3: US slash Canada. So it throws those two into the

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Speaker 3: bubble together, even though we know tariffs is actually being

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Speaker 3: addressed as Canada Mexico US. So that's a little bit

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Speaker 3: interesting and difficult for people to parse through the data.

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Speaker 3: Second of all, it will matter based on okay, So

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Speaker 3: there's three ways basically at least that we can see

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Speaker 3: that the tariffs are going to get put onto the vehicles. One,

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Speaker 3: you completely import the assembled vehicle, you pay the full

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Speaker 3: bear of the tariff from any other country outside.

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Speaker 4: Of North America.

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Speaker 3: If you import Canada and Mexico, you get hit with

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Speaker 3: the twenty five percent, but they'll give you credit for

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Speaker 3: US content, And we don't yet know how they're going

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Speaker 3: to certify which pieces really consist of US content. And

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Speaker 3: then the third way that they're going to teariff you

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Speaker 3: is if you're US assembled, but any componentry parts, steel,

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Speaker 3: an aluminum, anything else that's coming into the country that's

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Speaker 3: helping you build that vehicle that will have been tariffed

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Speaker 3: on its way into assembly.

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Speaker 2: Does that make sense, yes, But it's worse than that.

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Speaker 2: According to Bloomberg. For example, an Audi Q five assembled

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Speaker 2: in Mexico gets hit with a twenty five percent tariff

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Speaker 2: for being a car coming in from outside the US

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Speaker 2: YEP also a twenty five percent tariff for being a

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Speaker 2: non USMCA compliant Mexican product coming from Mexico, and a

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Speaker 2: two and a half percent surcharge for not being US

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Speaker 2: MCA compliant. If that makes sense, So total tariffs for

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Speaker 2: the AUDIQ five coming in from wherever San Luis Bispo

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Speaker 2: is going to be fifty two and a half percent.

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Speaker 3: Yes, so you're correct the auto tariffs and I haven't

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Speaker 3: looked specifically into that car, but you're correct in the stacking.

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Speaker 3: So when March twenty six came up, Trump indicated, Hey,

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Speaker 3: these auto tariffs are going to be stacked on top

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Speaker 3: of existing tariffs that I've already been put into place,

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Speaker 3: which included the February first IEPA authorization of twenty five

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Speaker 3: percent on Canada, Mexico and the ten percent on China,

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Speaker 3: which the ten percent went to twenty percent, and at

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Speaker 3: the time they gave the USMCA compliant exemption. So if

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Speaker 3: a car is not USMCA compliant, you're correct they were

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Speaker 3: subjected to that twenty five percent under the IEBA order

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Speaker 3: February first, and that would get stacked on top of

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Speaker 3: the twenty five percent that was then issued on March

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Speaker 3: twenty six.

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Speaker 4: You're correct on that.

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Speaker 2: And by the way, is our understanding and do they

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Speaker 2: have to? So I'm driving a BMWM two right now,

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Speaker 2: test driving it, and it's amazing not currently no, but

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Speaker 2: you have that yes, I'm not actually yeah, but so

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Speaker 2: I have it and twind in his hair and yeah,

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Speaker 2: my hair is flying in the wind.

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Speaker 4: No.

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Speaker 2: So on the Monroney it says parts content information and

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Speaker 2: then it lists major source of foreign parts Germany twenty

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Speaker 2: seven percent, Mexico fifteen percent assembled in Mexico, and then

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Speaker 2: US Canada parts content six percent.

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Speaker 3: Yes, you're right, and the Monroney label. So yes, I

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Speaker 3: started to say there and then I and I jump

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Speaker 3: to another fact. The Monroney label does. Yes, it will

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Speaker 3: typically tell you where the engineer transmission is from, what

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Speaker 3: the other percentage of content is, and then what's available

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Speaker 3: in the US, and then where it was assembled. I

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Speaker 3: have seen varying, so admittedly I haven't done too deep

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Speaker 3: into what is the like what does every manufacturer have

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Speaker 3: to put on them, but most of them do have those.

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Speaker 4: Four or five different outlines exactly just helpful for consumers.

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Speaker 2: This engine was put together in Austria, the transmission was

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Speaker 2: built in Germany. The whole thing prices out at eighty

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Speaker 2: two five, which is already kind of steep for an

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Speaker 2: M two. If you think about it, like when you

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Speaker 2: were a kid that was that would have been an

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Speaker 2: M three and it would have been like forty five

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Speaker 2: like Max so sure. And now if if they're not

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Speaker 2: USMCA compliant, this M two is going to sell in

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Speaker 2: the US, assuming BMW doesn't eat the costs for one

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Speaker 2: hundred and like at least one hundred and thirty thousand dollars,

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Speaker 2: that's nuts.

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Speaker 3: In theory, Well it would cost it would cost them

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Speaker 3: manufacturer that much.

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Speaker 4: Yes, so correct whether.

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Speaker 3: They end up you know, fully giving that to the client.

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Speaker 3: And we know BMW has already said, hey, we're gonna

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Speaker 3: we're gonna eat the cost for now, I think through

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Speaker 3: the end of May, is it? And that, you know,

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Speaker 3: likely is an exercise of the automaker to say, what

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Speaker 3: does this.

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Speaker 4: Look like moving forward? Where do we put the costs?

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Speaker 3: How do we afford this so that we don't make

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Speaker 3: the end to completely irrelevant?

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Speaker 4: Or do we get rid of the end too?

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Speaker 3: Because you know what, no matter which way we slice this,

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Speaker 3: we're not going to be able to make this at

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Speaker 3: an affordable price, and therefore we're gonna.

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Speaker 4: Get rid of the model. I mean that's certainly possible

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Speaker 4: as well.

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Speaker 1: I know, Matt, have you had anyone call and ask

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Speaker 1: to buyer in too? Because I'm thinking the idea that

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Speaker 1: dealerships are calling people yeah, can we buy.

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Speaker 2: Well, this is something else that I wanted to ask about.

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Speaker 2: Cox has been doing awesome coverage of the Mannheim Well,

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Speaker 2: I think you own the Manheim auctions man, Yes, we do. Yeah,

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Speaker 2: but I have heard that we're already seeing like nutsoe

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Speaker 2: prices at these auctions. Have you heard any you know,

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Speaker 2: anecdotal evidence that dealers are paying sure high prices.

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Speaker 4: Sure?

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Speaker 3: Yeah, No, we've been seeing increased sales conversion. Jeremy rob

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Speaker 3: one of my colleagues, did his monthly movie call on

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Speaker 3: Monday with some great you know figures around what we're

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Speaker 3: seeing in the used car market. But absolutely, we're starting

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Speaker 3: to see the sales conversion rate go up, We're.

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Speaker 4: Starting to see the.

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Speaker 3: Wholesale costs go up, and we're starting to see listing

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Speaker 3: prices go up.

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Speaker 4: So one hundred percent.

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Speaker 3: You can tell the dealers are saying, you know, we

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Speaker 3: got to stack up and make sure that we have

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Speaker 3: good supply of new and used.

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Speaker 2: So I wonderful'll be back in the situation. When I

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Speaker 2: bought my Silverado in twenty twenty two, I went to

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Speaker 2: the Chevy dealer to collect the truck when it was

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Speaker 2: finally delivered from Mexico, where it was assembled, and they

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Speaker 2: had an identical truck on the lot that was used

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Speaker 2: with like ten thousand miles for ten thousand dollars more

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Speaker 2: than I was paying MSRP. Are we going to start

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Speaker 2: seeing that again?

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Speaker 4: We might. I mean, I think we're going to see

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Speaker 4: a lot of the same.

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Speaker 3: Things that we thought about as part for.

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Speaker 4: The course during Cold cod.

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Speaker 3: The difference is going to be that we're probably going

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Speaker 3: to be in a period of high.

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Speaker 4: Frenzy, high profit.

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Speaker 3: But at the end of the day, we have a

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Speaker 3: very different economic situation now for the country as a

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Speaker 3: whole than we did in the pandemic, which I think

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Speaker 3: is going to slowly but surely towards the end of

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Speaker 3: the year tamper demand. We don't have the federal stimulus

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Speaker 3: coming into the economy. We know that consumers are not

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Speaker 3: as financially stable as they were that and we know

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Speaker 3: that that used to be when you know, interest rates

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Speaker 3: were at crazy lows and now they're at crazy highs,

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Speaker 3: so on and so forth. You know, people aren't moving

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Speaker 3: as much, which usually when someone moves it it spurs

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Speaker 3: on a purchase of a vehicle. So there's so many

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Speaker 3: other things that are happening in the market that lead

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Speaker 3: us to believe that while demand might froth quite a

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Speaker 3: bit right now, it will likely taper off as we

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Speaker 3: get further into the year because of all the other

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Speaker 3: extenuating circumstances.

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Speaker 1: Are you following it all? This sort of ongoing confusion

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Speaker 1: when it comes to vintage vehicles and cars that are

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Speaker 1: older than twenty five years, you know, it seemed like

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Speaker 1: they were going to get hit and then now there's

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Speaker 1: a carve out, but they're still going to get hit

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Speaker 1: by the parts tariffs. Do you have any clarity on

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Speaker 1: that to share?

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Speaker 3: There's a great question. And I listened to you guys

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Speaker 3: talking about this the other day, so I love it. Yeah,

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Speaker 3: And I had just read yes, yes. So as much

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Speaker 3: as I have tried to steep my interest here in

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Speaker 3: tariff and myledge grow my knowledge, I have yet to

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Speaker 3: officially become a trade lawyer, but I play one on

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Speaker 3: TV and I can tell you that it is confusing.

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Speaker 3: Low and behold, we're going to have a whole new

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Speaker 3: well not news services industry. But let me tell you,

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Speaker 3: customs brokers, it's your day. Get out there, go for it, man.

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Speaker 3: But I do think there is some confusion because there

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Speaker 3: did seem to be an exemption.

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Speaker 4: For vehicles that were over twenty five years.

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Speaker 3: But then depending on what comes, what specificity there is

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Speaker 3: in the annex one, and what actually hits the federal register,

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Speaker 3: these are all things we never knew we would know

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Speaker 3: anything about. That will tell us a little bit more

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Speaker 3: information about which parts and specific will get hit with

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Speaker 3: tariffs at what level. So would they get hit by

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Speaker 3: the automotive terrafs this is March or twenty sixth if

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Speaker 3: they don't appear in that schedule, didn't they get hit

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Speaker 3: by the ten percent tariff that was put on all

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Speaker 3: countries and eventually bet the reciprocal tariff. It's anyone's guess

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Speaker 3: at this point. So this is why you see a

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Speaker 3: lot of analysis, you know, paralysis analysis.

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Speaker 2: It seems impossible because because Hannah, if you if you

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Speaker 2: already don't know the origin of the components of a

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Speaker 2: new Cadillac, try figuring out the origin of the components

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Speaker 2: of a nineteen ninety seven six thirty five CSI like, right, Well, that's.

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Speaker 1: My question is is this deliberately confusing and chaotic or

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Speaker 1: is it a question of no one actually knows what

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Speaker 1: they're doing? And I mean, is this completely deliberate or

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Speaker 1: is this a case of the people in charge making

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Speaker 1: the rules are sort of learning as they go and

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Speaker 1: figuring out as they go along.

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Speaker 3: You know, it's a great question and what I would

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Speaker 3: actually say, and I think you guys would agree with this.

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Speaker 3: It is the massive uncovering of why we love automotive,

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Speaker 3: right but why you know, industry specific information is incredibly

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Speaker 3: important when you're thinking about doing blanket moves that might

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Speaker 3: impact multiple sectors, and the global automotive industry literally touches

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Speaker 3: nearly every sector of the economy. It is incredibly and

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Speaker 3: highly complex, and I don't believe it's as deliberate as

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Speaker 3: some people might think it is, although there could be

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Speaker 3: some deliberate components of it.

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Speaker 4: I think it truly is.

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Speaker 3: Even people in automotive who've been in it for thirty

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Speaker 3: five years are going, huh, actually, where does that come from?

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Speaker 3: Or how did that get into our supply chain? So

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Speaker 3: I think by its very nature it's incredibly complex, which

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Speaker 3: is why, you know, the more individuals that are out

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Speaker 3: there that have been doing this for a long time

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Speaker 3: and have that deep, deep knowledge of the supply chain

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Speaker 3: are going to come in real handy.

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Speaker 4: To trying to dig this apart and figure out Wait

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Speaker 4: a minute.

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Speaker 3: Because you hit you need a trade layer, you need

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Speaker 3: a customs broker, you need a supply to it expert.

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Speaker 3: You know, you're going to need several people at the

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Speaker 3: table to mince through all of the details because you're

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Speaker 3: likely to cross over a couple of different areas of

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Speaker 3: expertise to make a final declaration of like, aha, yes,

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Speaker 3: this part subject to sixteen point five percent effective terrorfreate right.

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Speaker 3: You know, I think it's gonna it's going to take

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Speaker 3: a lot of people to get there.

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Speaker 1: Yeah, okay, good.

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Speaker 2: I did I have I know you got to go,

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Speaker 2: but I have one last question. You don't just do

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Speaker 2: the business end of this. You also love cars. And

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Speaker 2: I know last time we talked to you, you were

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Speaker 2: on a press junket. So I was going to ask,

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Speaker 2: what's your favorite car of the currently assembled in the

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Speaker 2: US vehicles, Like, if you had to pick one that's

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Speaker 2: not assembled outside of this border, what would you choose?

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Speaker 2: And it's not like there's a broad variety to choose from, right,

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Speaker 2: because they're mostly trucks.

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Speaker 3: Yeah, yeah, exactly fifty percent the chicken tags. That's something

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Speaker 3: we should all consider in looking at this right now.

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Speaker 3: Oh my goodness, you asked a tough one. Because I've

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Speaker 3: been so focused on what's imported. I don't know that

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Speaker 3: I've been paying a ton of attention to exactly what's

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Speaker 3: actually built in the US.

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Speaker 2: Like, I mean, do you like the Rivan? Do you

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Speaker 2: like the Lucid? So you were going to ev No, no, no, no,

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Speaker 2: I wouldn't choose an EV. I would probably choose an

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Speaker 2: F one fifty also, or yeah, or a Tahoe. I

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Speaker 2: like the Tahoes and suburbans, you know, I.

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Speaker 3: Mean Honda and Toyota both. Yeah, they both have a

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Speaker 3: ton of vehicles. I mean eighty percent of Toyotas are

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Speaker 3: assembled in the US.

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Speaker 4: Same thing with Honda.

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Speaker 2: There's Mustangs and Corvettes, right.

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Speaker 4: There's Mustangs and corvettes. Yeah, I mean I could list

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Speaker 4: you fifty cars that are not assembled in the US

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Speaker 4: right now. You put me on the spot.

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Speaker 2: Well, the Mustang is the only one of the only vs.

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Speaker 2: The vights you can get with a stick can be

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Speaker 2: listed on two fingers, right, Mustang GT and Cadillac CT

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Speaker 2: five V black wing. Right, and that'd probably my choice.

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Speaker 4: Yeah, I'll go with your choice. I'll let you check

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Speaker 4: I'll let you.

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Speaker 3: Pick it out for me about that, Thanks Aaron, I

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Speaker 3: trust your judgment, really appreciate your time.

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Speaker 1: Thank you, Aaron. We all know my answer to that.

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Speaker 1: There's only one answer, and that's the Corvette.

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Speaker 2: You know what, I might agree. I have this internal

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Speaker 2: dilemma or this internal debate all the time if I

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Speaker 2: were going to choose a sports car or like, would

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Speaker 2: I choose a Cadillac CT five V black Wing or

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Speaker 2: would I choose a Corvette? And there you could have

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Speaker 2: also a ZO six or ZL one.

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Speaker 1: I don't know, thanks American specifically American branded HIC.

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Speaker 2: I mean, if I had another one hundred and thirty

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Speaker 2: forty fifty grand to buy a sweet car, those two

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Speaker 2: would be way up there my short list, way up there,

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Speaker 2: And I don't know which one I would rather have.

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Speaker 2: You know, they're different. For you can't get a stick

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Speaker 2: with the Corvette. But do I care that much about

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Speaker 2: three pedals? Maybe not?

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Speaker 1: Oh, I mean, I guess because the.

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Speaker 2: Cadillac is horrible to look at it. It's very ugly, I know.

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Speaker 1: But you could fit your kids in the back and.

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Speaker 2: It has a supercharger. You know, you can't get a

404
00:20:18,520 --> 00:20:19,040
Speaker 2: new Corvette?

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Speaker 1: Was the real question is what is more important to

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Speaker 1: you the engine or the transmission setup.

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Speaker 2: It's a yeah, this is we can have a whole

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Speaker 2: show on the Corvette versus the Cadillac Cet.

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Speaker 1: Everyone to email us with what you think is more important.

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Speaker 2: I think, right, yeah, that would be a great email.

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Speaker 2: Our email is hot pursuit at Bloomberg dot net. Isn't

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Speaker 2: that right?

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Speaker 1: Yeah, hot pursuit at Bloomberg dot net. I honestly would

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Speaker 1: like to hear what is more important to the born

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Speaker 1: and bred automotive file.

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Speaker 2: I wonder who else has this internal debate? Probably a

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Speaker 2: lot of people, because those are two kind of halo vehicles,

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00:20:58,600 --> 00:21:03,920
Speaker 2: right right. One of them is looks really cool and

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Speaker 2: has an amazing and complex interior, maybe not the best

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Speaker 2: sort of reputation. The other one looks awful but is

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Speaker 2: just mind blowing in terms of the powertrain, has a

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Speaker 2: stick shift option and a very elegant, I think interior.

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Speaker 1: You know, I think about this a lot when it

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Speaker 1: comes to houses in a way, like would you rather

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Speaker 1: live in a house that looks very nondescript on the

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Speaker 1: outside but it's really cool on the inside, or something

427
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Speaker 1: that looks really beautiful on the outside. But it's not

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Speaker 1: especially charming on the inside.

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Speaker 2: Definitely the former, Definitely the former. Yeah, you know, when

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Speaker 2: I started when I started doing when I started going

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Speaker 2: a lot to southern Spain, and because my wife is Spanish,

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Speaker 2: I do that now a lot. I noticed there's this style,

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Speaker 2: especially like in Sevilla Cordoba, Granada, and I think it's

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Speaker 2: from the Moors when they, you know, ruled they ruled

435
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Speaker 2: Spain for hundreds of years, and they have this thing

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Speaker 2: where on the outside they don't want to show their wealth,

437
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Speaker 2: so it just looks like, you know, a stucco building,

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Speaker 2: a wall, and then you go in and these gardens

439
00:22:13,920 --> 00:22:16,520
Speaker 2: are beautiful and the interiors are amazing and there's like

440
00:22:16,680 --> 00:22:20,040
Speaker 2: water fountains, and yes, I would rather have that for sure.

441
00:22:20,440 --> 00:22:22,600
Speaker 1: Yeah, I'm with you on that. I'm really with you

442
00:22:22,640 --> 00:22:25,919
Speaker 1: on that, because you're when you're inside, that's your space.

443
00:22:25,920 --> 00:22:26,720
Speaker 1: You're inhabiting that.

444
00:22:26,960 --> 00:22:30,600
Speaker 2: I mean, yeah, I need to make a quick correction,

445
00:22:31,240 --> 00:22:34,760
Speaker 2: speaking of email, before we get flooded with I said

446
00:22:34,880 --> 00:22:38,719
Speaker 2: nineteen ninety seven six point thirty five CSI and the

447
00:22:38,760 --> 00:22:41,560
Speaker 2: E twenty four six series. They stopped making it in

448
00:22:41,640 --> 00:22:42,680
Speaker 2: nineteen eighty nine.

449
00:22:42,760 --> 00:22:47,040
Speaker 1: So okay, if anyone would have called you out on that.

450
00:22:48,119 --> 00:22:50,080
Speaker 1: I would have. I don't know the difference. I would

451
00:22:50,080 --> 00:22:51,080
Speaker 1: have been very surprised.

452
00:22:51,320 --> 00:22:57,320
Speaker 2: I've been talking with some car blogger bros. A lot lately. Yeah,

453
00:22:57,359 --> 00:23:02,040
Speaker 2: this is one of those things that they in on instantaneously.

454
00:23:02,359 --> 00:23:06,000
Speaker 1: You know, I will never Honestly, those guys are the

455
00:23:06,000 --> 00:23:09,320
Speaker 1: best fact checkers because you get I mean, you get

456
00:23:09,440 --> 00:23:11,879
Speaker 1: nothing past them. I will. I will never be able

457
00:23:11,920 --> 00:23:15,919
Speaker 1: to get anything past that type of reader, which is

458
00:23:15,920 --> 00:23:17,199
Speaker 1: a good thing, you know.

459
00:23:17,880 --> 00:23:21,480
Speaker 2: Yeah, for sure, if I ever had written nineteen ninety

460
00:23:21,520 --> 00:23:25,440
Speaker 2: seven six thirty five CSI on opposite lock, I would

461
00:23:25,440 --> 00:23:27,040
Speaker 2: have been lambastard, you.

462
00:23:27,000 --> 00:23:31,440
Speaker 1: Know, as a fool for such a careless error.

463
00:23:31,880 --> 00:23:34,440
Speaker 2: What a great car though the twenty four to six

464
00:23:34,560 --> 00:23:36,119
Speaker 2: series No.

465
00:23:36,600 --> 00:23:40,840
Speaker 1: I was with Cadillac this week for their Celestic.

466
00:23:40,920 --> 00:23:42,160
Speaker 2: Ah cool, all right, so.

467
00:23:43,160 --> 00:23:45,320
Speaker 1: You should talk about that because Cadillac is on the

468
00:23:45,320 --> 00:23:46,160
Speaker 1: brain this week.

469
00:23:46,440 --> 00:23:51,120
Speaker 2: Let's do it. And you also have driven the Escalade IQ.

470
00:23:52,320 --> 00:23:55,480
Speaker 1: Yes, and that review is going live on Monday. It'll

471
00:23:55,480 --> 00:23:58,440
Speaker 1: be in Business Week magazine and the print issue and

472
00:23:58,480 --> 00:24:02,680
Speaker 1: it will be online on Monday after this episode goes live.

473
00:24:02,800 --> 00:24:05,240
Speaker 1: So yeah, we should talk Cadillac and I drove the

474
00:24:05,280 --> 00:24:08,720
Speaker 1: Celestic yesterday all day all around lap up in the

475
00:24:08,760 --> 00:24:11,879
Speaker 1: mountains in Hollywood, in downtown.

476
00:24:12,000 --> 00:24:14,760
Speaker 2: So wait, is this the like three hundred thousand dollars.

477
00:24:15,680 --> 00:24:18,600
Speaker 2: What's the story with the Celestic because it has got

478
00:24:18,680 --> 00:24:20,200
Speaker 2: a polarizing design.

479
00:24:20,119 --> 00:24:23,239
Speaker 1: Which I applied polarizing and I might have I might

480
00:24:23,280 --> 00:24:26,879
Speaker 1: have figured it out. So this is the three hundred

481
00:24:26,920 --> 00:24:32,720
Speaker 1: and sixty thousand dollars all electric vehicle that it's a

482
00:24:32,800 --> 00:24:38,360
Speaker 1: two plus two car. The wheelbase is as long as

483
00:24:38,359 --> 00:24:43,400
Speaker 1: an escalade wheelbase, and it is, but it is as

484
00:24:43,520 --> 00:24:46,320
Speaker 1: tall as the CT five, so it's the same height

485
00:24:46,359 --> 00:24:49,080
Speaker 1: as a sedan. But it's wheelbase is as long as

486
00:24:49,080 --> 00:24:55,679
Speaker 1: an escalade. It has a hatchback rear and Cadillac is

487
00:24:55,720 --> 00:25:00,439
Speaker 1: not marketing this as a wagon, but I think with

488
00:25:00,720 --> 00:25:05,640
Speaker 1: the rear end, the rear end is problematic. It's difficult

489
00:25:06,000 --> 00:25:11,320
Speaker 1: to digest. And I really think their launch color of

490
00:25:11,520 --> 00:25:15,200
Speaker 1: bright orange, like a McLaren style orange, has really really

491
00:25:15,320 --> 00:25:18,560
Speaker 1: hurt that car because it's not flattering to the car

492
00:25:18,680 --> 00:25:19,000
Speaker 1: at all.

493
00:25:19,080 --> 00:25:20,040
Speaker 2: Yeah, it doesn't look good enough.

494
00:25:20,800 --> 00:25:23,359
Speaker 1: I did have the opportunity to see the car in

495
00:25:23,480 --> 00:25:27,720
Speaker 1: multiple different colors this week, and I also started sort

496
00:25:27,720 --> 00:25:31,920
Speaker 1: of framing the car as a wagon and that helps

497
00:25:32,640 --> 00:25:38,280
Speaker 1: me to understand the car better. You know, that car

498
00:25:38,280 --> 00:25:41,480
Speaker 1: in like sort of a smoky brown metallic is actually

499
00:25:41,560 --> 00:25:45,679
Speaker 1: rather beautiful, and I started imagining it sort of like

500
00:25:45,960 --> 00:25:50,760
Speaker 1: the Lamborghini Espata from the seventies, or a citron An

501
00:25:50,800 --> 00:25:55,280
Speaker 1: sm or even a Portion nine twenty eight. And when

502
00:25:55,320 --> 00:25:59,200
Speaker 1: you start talking about it in those terms, I can

503
00:25:59,359 --> 00:26:01,520
Speaker 1: kind of see it. I can see it. And I

504
00:26:01,520 --> 00:26:06,080
Speaker 1: don't think any of those cars was particularly critically or

505
00:26:06,119 --> 00:26:10,639
Speaker 1: popularly acclaimed when they debuted, but of course now as

506
00:26:10,760 --> 00:26:15,919
Speaker 1: vintage models, we really love them. So so yeah, Cadillac

507
00:26:16,040 --> 00:26:20,400
Speaker 1: is swinging for the fences, as it were, with this one.

508
00:26:20,680 --> 00:26:24,280
Speaker 1: They have been working on this for really for fifteen years,

509
00:26:24,560 --> 00:26:27,920
Speaker 1: with a lot of concepts, like if you remember the Eskala,

510
00:26:28,000 --> 00:26:29,879
Speaker 1: the Cadillac I think it was this, but.

511
00:26:29,960 --> 00:26:32,159
Speaker 2: Not always as an electric, right, because that's where you

512
00:26:32,240 --> 00:26:34,200
Speaker 2: do when you say hybrid.

513
00:26:34,680 --> 00:26:38,679
Speaker 1: Yes, so the last five years they committed, you know,

514
00:26:38,720 --> 00:26:41,680
Speaker 1: they committed to making this an electric vehicle five years

515
00:26:41,680 --> 00:26:43,800
Speaker 1: ago when it looked like everyone was going to be

516
00:26:43,880 --> 00:26:47,000
Speaker 1: electric by twenty twenty five. Obviously that hasn't happened. And

517
00:26:47,080 --> 00:26:52,199
Speaker 1: I did ask multiple of the engineers yesterday, could you

518
00:26:52,280 --> 00:26:55,439
Speaker 1: have pivoted two years ago, when you guys, when everyone

519
00:26:55,520 --> 00:26:58,639
Speaker 1: kind of realized hybrids are important and they might be

520
00:26:58,680 --> 00:27:00,760
Speaker 1: here to stay for quite a while, you have pivoted

521
00:27:00,760 --> 00:27:03,960
Speaker 1: to hybrid and they all said, yes, yes, but we

522
00:27:04,080 --> 00:27:06,399
Speaker 1: wanted to stick with the plan and stay the course

523
00:27:06,400 --> 00:27:11,240
Speaker 1: and you know, make a very audacious move. So this

524
00:27:11,280 --> 00:27:14,040
Speaker 1: is their audacious move. Matt, tell me your thoughts. I

525
00:27:14,080 --> 00:27:16,919
Speaker 1: can see you looking, I can see you sort of

526
00:27:17,240 --> 00:27:19,720
Speaker 1: studying this car. I'm dying to know what you think.

527
00:27:19,880 --> 00:27:23,040
Speaker 2: So I'm not a fan of French cars, and I

528
00:27:23,080 --> 00:27:27,960
Speaker 2: think the comparison to Citoya is pretty spot on. Yeah,

529
00:27:28,000 --> 00:27:30,639
Speaker 2: for sure it. I like it much better when I

530
00:27:30,680 --> 00:27:33,000
Speaker 2: think of a nine to twenty eight. So I think

531
00:27:33,040 --> 00:27:36,760
Speaker 2: that's a really interesting way to frame it. I do

532
00:27:36,960 --> 00:27:41,680
Speaker 2: applaud any car maker that is willing to take such

533
00:27:41,680 --> 00:27:44,440
Speaker 2: a bold step, and it doesn't matter if I like

534
00:27:44,480 --> 00:27:48,080
Speaker 2: it or not. For example, I think the Tesla cyber

535
00:27:48,119 --> 00:27:51,560
Speaker 2: truck is horrendous, but I think it's so cool that

536
00:27:51,640 --> 00:27:55,200
Speaker 2: they actually made that. That was before you know, Elon

537
00:27:55,960 --> 00:28:02,160
Speaker 2: lost his mind. But uh, but for me, like three

538
00:28:02,240 --> 00:28:04,520
Speaker 2: hundred and sixty thousand dollars, When you say that and

539
00:28:04,560 --> 00:28:08,879
Speaker 2: then you follow with all electric I'm like tuning out

540
00:28:09,080 --> 00:28:14,120
Speaker 2: because I don't care anymore. You know, you were talking

541
00:28:14,200 --> 00:28:17,520
Speaker 2: with Aaron about retailers that go away from technology, right

542
00:28:17,840 --> 00:28:20,760
Speaker 2: or or your your take. I like on luxury, which

543
00:28:20,800 --> 00:28:24,480
Speaker 2: is that things have to be real wood, leather, and

544
00:28:25,040 --> 00:28:28,560
Speaker 2: I need to smell, you know, the gas. Like I

545
00:28:28,600 --> 00:28:32,480
Speaker 2: know that an electric powertrain is also real, But there's

546
00:28:32,480 --> 00:28:36,439
Speaker 2: something to me about the mechanical moving parts of an

547
00:28:36,480 --> 00:28:40,200
Speaker 2: internal combustion engine and the way it operates, probably because

548
00:28:40,200 --> 00:28:42,120
Speaker 2: of my you know, my age and my history, but

549
00:28:42,720 --> 00:28:46,800
Speaker 2: a lot of us have that. So yeah, I can't.

550
00:28:47,080 --> 00:28:50,600
Speaker 2: I can't think about luxury and electric in the same breath.

551
00:28:50,680 --> 00:28:52,800
Speaker 2: I could be wrong. I've never driven like the Rolls

552
00:28:52,880 --> 00:28:56,120
Speaker 2: roy Specter and you have so, and I understand why

553
00:28:56,160 --> 00:28:59,959
Speaker 2: that would be perfect for that magic carpet ride. Like effort,

554
00:29:00,120 --> 00:29:05,200
Speaker 2: this motivation totally, and so my whole thinking on this

555
00:29:05,240 --> 00:29:08,719
Speaker 2: could be changed when I drive, when I drive one

556
00:29:08,760 --> 00:29:10,120
Speaker 2: of these things, but I haven't yet.

557
00:29:10,160 --> 00:29:13,080
Speaker 1: So I bet you, I bet you will have that opportunity.

558
00:29:13,120 --> 00:29:15,600
Speaker 1: I think Cadillac has had that car out and about

559
00:29:15,640 --> 00:29:17,240
Speaker 1: and they're going to have it more out now. I

560
00:29:18,240 --> 00:29:21,920
Speaker 1: totally agree. You know, Cadillac is going to make twenty

561
00:29:21,960 --> 00:29:24,680
Speaker 1: five of these in the first year. They've told me

562
00:29:24,840 --> 00:29:28,600
Speaker 1: they've sold twenty two of that twenty five, so they're

563
00:29:28,640 --> 00:29:30,840
Speaker 1: you know, they're not mass producing them. I'm sure they're

564
00:29:31,280 --> 00:29:36,600
Speaker 1: This is a lost leader, and it's about trying to

565
00:29:36,640 --> 00:29:41,000
Speaker 1: recapture some of what Cadillac used to mean. And we

566
00:29:41,120 --> 00:29:45,560
Speaker 1: did talk a lot about how to tap into I mean,

567
00:29:45,560 --> 00:29:47,680
Speaker 1: Cadillac used to be the standard of the world. As

568
00:29:47,720 --> 00:29:51,080
Speaker 1: their tagline was, it was this the world's standard for

569
00:29:51,160 --> 00:29:55,720
Speaker 1: luxury at one time. And I do think it's very

570
00:29:55,760 --> 00:30:00,440
Speaker 1: fascinating that now we're being forced to consider what does

571
00:30:00,440 --> 00:30:05,280
Speaker 1: American luxury mean when when we're thinking about tariffs affecting

572
00:30:05,400 --> 00:30:07,640
Speaker 1: a lot of our other wonderful luxury atoms that are

573
00:30:07,680 --> 00:30:13,760
Speaker 1: being imported. To your point about the electric vehicle, I agree,

574
00:30:14,040 --> 00:30:17,400
Speaker 1: you know, it's I don't think it's wrong that Rolls

575
00:30:17,440 --> 00:30:21,480
Speaker 1: Royce made an electric powertrain for the Specter that does

576
00:30:21,800 --> 00:30:24,600
Speaker 1: go at. Rolls Royce had already talked about making electric

577
00:30:24,720 --> 00:30:27,160
Speaker 1: vehicles one hundred years ago, so that seems very in

578
00:30:27,200 --> 00:30:32,560
Speaker 1: a way authentic Cadillac. It's a little bit different, I

579
00:30:32,600 --> 00:30:36,400
Speaker 1: can tell you. I'm I'm undecided. I know it's a

580
00:30:36,440 --> 00:30:38,760
Speaker 1: really bad time to be selling a really expensive EV

581
00:30:39,120 --> 00:30:43,240
Speaker 1: nobody wants them. I don't necessarily think it was wrong

582
00:30:43,280 --> 00:30:45,360
Speaker 1: they did it. I can't talk more about it because

583
00:30:45,360 --> 00:30:47,200
Speaker 1: I'm under a bargo, but I.

584
00:30:47,160 --> 00:30:49,800
Speaker 2: Don't I'm sure. I'm sure that it drives amazingly well,

585
00:30:49,840 --> 00:30:52,080
Speaker 2: and I have driven, by the way. I was talking

586
00:30:52,120 --> 00:30:58,160
Speaker 2: to some listeners recently who who reiterated the idea that

587
00:30:58,200 --> 00:31:02,640
Speaker 2: I'm antiev which isn't true. I've driven electric vehicles that

588
00:31:02,720 --> 00:31:07,760
Speaker 2: I found to be rewarding and luxurious. I really enjoy

589
00:31:08,480 --> 00:31:12,120
Speaker 2: I really enjoy the Audi Etron, for example. I really

590
00:31:12,240 --> 00:31:17,840
Speaker 2: enjoy the Mercedes EQS and it's super luxurious, right, and

591
00:31:17,880 --> 00:31:20,640
Speaker 2: I think the electric power train fits. I love the BMW,

592
00:31:21,160 --> 00:31:24,280
Speaker 2: the electric BMW seven series, the I seven. That's a

593
00:31:24,480 --> 00:31:27,080
Speaker 2: very luxurious car, and it's very expensive, and I think

594
00:31:27,120 --> 00:31:32,520
Speaker 2: it's probably to some extent worth it. But I and

595
00:31:32,560 --> 00:31:35,480
Speaker 2: I'm and I'm sure that the Cadillac Escalade IQ is

596
00:31:35,520 --> 00:31:37,880
Speaker 2: going to be my favorite electric vehicle of all time,

597
00:31:37,920 --> 00:31:40,840
Speaker 2: because you know, I love the pickup trucks, the electric

598
00:31:40,840 --> 00:31:43,760
Speaker 2: pickup trucks like the Sierra EV, and I love the

599
00:31:43,880 --> 00:31:47,560
Speaker 2: GMC Hummer. I feel like I feel like Cadillac IQ

600
00:31:47,800 --> 00:31:51,600
Speaker 2: is the perfect vehicle for that because it's not as

601
00:31:51,920 --> 00:31:54,440
Speaker 2: sort of doesn't have the silly image as much of

602
00:31:54,600 --> 00:31:57,520
Speaker 2: as the Hummer does. And it doesn't I won't feel

603
00:31:57,520 --> 00:32:01,240
Speaker 2: like I'm overpaying, which I would with like any Tron

604
00:32:01,440 --> 00:32:05,120
Speaker 2: or else. Yeah, you know, two hundred kilot hour battery

605
00:32:05,120 --> 00:32:08,920
Speaker 2: does a lot to win my money, but I don't

606
00:32:08,960 --> 00:32:12,920
Speaker 2: know for me. The I mean, if it's really luxury,

607
00:32:13,000 --> 00:32:16,160
Speaker 2: like four hundred thousand dollars, then you.

608
00:32:16,200 --> 00:32:19,560
Speaker 1: Know, a big, a big selling point to this vehicle.

609
00:32:19,640 --> 00:32:22,960
Speaker 1: And really what they're leveraging is the fact that each

610
00:32:23,040 --> 00:32:28,200
Speaker 1: one will be made tailored to the customer specifications. There's

611
00:32:28,280 --> 00:32:33,280
Speaker 1: no standard entry level Celestic. Each one is a made

612
00:32:33,280 --> 00:32:37,320
Speaker 1: to order thing that you you will you know, pick

613
00:32:37,400 --> 00:32:41,280
Speaker 1: the colors. It's not it's not extensive bespoken, but it's

614
00:32:41,360 --> 00:32:44,280
Speaker 1: it's pretty good, you know. So if you want, if

615
00:32:44,320 --> 00:32:47,080
Speaker 1: you already owned a Rolls Royce and a Bentley and

616
00:32:47,120 --> 00:32:49,920
Speaker 1: an Aston Martin and you thought, oh, it'll be really

617
00:32:49,960 --> 00:32:53,880
Speaker 1: fun to have an American vehicle that I can have,

618
00:32:54,040 --> 00:32:55,959
Speaker 1: you can know, I can tell a story with the

619
00:32:56,000 --> 00:32:59,280
Speaker 1: colors and the trims and all of that. You know,

620
00:32:59,800 --> 00:33:03,480
Speaker 1: it's it's a bit of a high price point vehicle,

621
00:33:04,120 --> 00:33:06,360
Speaker 1: but yeah, I mean they don't have to sell that

622
00:33:06,400 --> 00:33:09,880
Speaker 1: many of them. I had dinner with Michael Simcoe, who's

623
00:33:09,960 --> 00:33:16,760
Speaker 1: the head designer, the other night, and he still believes

624
00:33:16,840 --> 00:33:22,880
Speaker 1: that electric vehicles are the future, even though nobody wants

625
00:33:22,920 --> 00:33:23,440
Speaker 1: to buy them.

626
00:33:23,520 --> 00:33:24,800
Speaker 2: Now, I'm sure he's not wrong.

627
00:33:25,920 --> 00:33:29,560
Speaker 1: He really doubled down and said, hey, eventually, this is

628
00:33:29,600 --> 00:33:33,360
Speaker 1: where we're going, no question about it. So we're staying

629
00:33:33,400 --> 00:33:33,800
Speaker 1: the course.

630
00:33:34,520 --> 00:33:37,239
Speaker 2: It's for sure. It's true as a utility, you know,

631
00:33:38,040 --> 00:33:42,840
Speaker 2: as a as an appliance, it makes total sense. But

632
00:33:42,880 --> 00:33:46,760
Speaker 2: that's not what this is supposed to be. Right. In

633
00:33:46,840 --> 00:33:48,240
Speaker 2: any case, I think a lot of it has to

634
00:33:48,240 --> 00:34:00,800
Speaker 2: do with my own biases. I'm still confers founded by

635
00:34:01,920 --> 00:34:04,400
Speaker 2: the effect these tariffs are going to have on the

636
00:34:04,520 --> 00:34:11,799
Speaker 2: ultimate driving machine, on the nine to eleven on Ducati motorcycles, Like,

637
00:34:11,840 --> 00:34:14,799
Speaker 2: what's going to happen? I just I look at this.

638
00:34:14,920 --> 00:34:19,160
Speaker 2: When I saw this, Monroney really really drove it home

639
00:34:19,200 --> 00:34:22,240
Speaker 2: for me and for those who don't know. Car makers

640
00:34:22,280 --> 00:34:25,840
Speaker 2: put out these labels that are I think regulated by

641
00:34:26,239 --> 00:34:30,120
Speaker 2: by NITZA, and they have to include certain pieces of

642
00:34:30,120 --> 00:34:36,000
Speaker 2: information like vehicle content. So again the M two it

643
00:34:36,080 --> 00:34:40,719
Speaker 2: says US Canadian parts content six percent. Major source of

644
00:34:40,719 --> 00:34:44,400
Speaker 2: foreign parts Germany twenty seven percent, Mexico fifteen percent, Final

645
00:34:44,480 --> 00:34:49,560
Speaker 2: vehicle assembly San Luis, Potosi, Mexico Engine, Austria Transmission, Germany.

646
00:34:49,680 --> 00:34:51,880
Speaker 2: This car is not getting sold in the US without

647
00:34:51,960 --> 00:34:57,759
Speaker 2: massive tariffs. And I think, you know, BMW obviously produces

648
00:34:58,280 --> 00:35:01,120
Speaker 2: so much here, and I think I think BMW is

649
00:35:01,120 --> 00:35:04,680
Speaker 2: one of the biggest exporters in America. They export double

650
00:35:04,680 --> 00:35:07,719
Speaker 2: digit billions of dollars for their products. But those are

651
00:35:07,760 --> 00:35:11,239
Speaker 2: all X series, so that it's X three x five

652
00:35:11,880 --> 00:35:16,960
Speaker 2: x seven, you know, the M two, or that any

653
00:35:17,000 --> 00:35:20,800
Speaker 2: two series three series, which ironically is what they started

654
00:35:20,800 --> 00:35:22,879
Speaker 2: producing here in the US and the seventies. But none

655
00:35:22,880 --> 00:35:26,520
Speaker 2: of that's made here. So what are they gonna do?

656
00:35:26,600 --> 00:35:29,040
Speaker 2: And I think of my beloved Ducoatti motorcycles, you know,

657
00:35:29,080 --> 00:35:32,560
Speaker 2: I mean, they're already pretty pricey. I can put together

658
00:35:32,560 --> 00:35:36,479
Speaker 2: a multi strata on the configurator and get well into

659
00:35:36,520 --> 00:35:40,239
Speaker 2: thirty thousand dollars. And if and if it's gonna be

660
00:35:40,239 --> 00:35:44,839
Speaker 2: tariffed at twenty five percent, which I'm not positive about,

661
00:35:44,840 --> 00:35:47,960
Speaker 2: I don't know how motorcycles will be handled. But it's,

662
00:35:48,360 --> 00:35:51,640
Speaker 2: you know, all of a sudden, it's it's gonna cost

663
00:35:51,880 --> 00:35:53,680
Speaker 2: closer to forty right.

664
00:35:53,560 --> 00:36:00,160
Speaker 1: So yeah, I don't it. Do you think that now?

665
00:36:00,280 --> 00:36:03,040
Speaker 1: I mean, it would seem natural that now a car

666
00:36:03,160 --> 00:36:07,240
Speaker 1: like a BMW would be even more of a status symbol.

667
00:36:07,760 --> 00:36:10,440
Speaker 1: I mean it, five years from now, if these tariffs

668
00:36:10,440 --> 00:36:14,200
Speaker 1: stick and you know, everything continues down this path, five

669
00:36:14,280 --> 00:36:18,080
Speaker 1: or ten years from now, hypothetically those cars will be

670
00:36:18,200 --> 00:36:22,480
Speaker 1: considered extremely like signifiers of status.

671
00:36:22,719 --> 00:36:26,719
Speaker 2: Yeah, but like the point of the three series is

672
00:36:26,840 --> 00:36:30,600
Speaker 2: for uh, you know, I know someone who's just made

673
00:36:30,600 --> 00:36:33,680
Speaker 2: it to middle management, or you know, a young person

674
00:36:33,680 --> 00:36:36,000
Speaker 2: who's just started on Wall Street, or or someone who

675
00:36:36,040 --> 00:36:40,279
Speaker 2: saved money and cares about driving, like I imagine that BMW

676
00:36:40,400 --> 00:36:42,880
Speaker 2: if this kind of thing, if this tariff sticks, I

677
00:36:42,880 --> 00:36:47,919
Speaker 2: imagine they'll have to assemble them at Spartanberg again. And

678
00:36:49,520 --> 00:36:53,400
Speaker 2: for a company like I don't know, Ducati is Italian

679
00:36:54,160 --> 00:36:57,160
Speaker 2: is in its DNA right, so they'll they'll never be

680
00:36:57,160 --> 00:37:01,360
Speaker 2: able to make a Panagali here, but I imagine they

681
00:37:01,440 --> 00:37:05,160
Speaker 2: might at least consider, you know, for the dirt bikes

682
00:37:05,160 --> 00:37:08,600
Speaker 2: they're making off road vehicles now, to assemble those somewhere

683
00:37:08,640 --> 00:37:09,280
Speaker 2: in the US.

684
00:37:09,680 --> 00:37:12,120
Speaker 1: You know, are you getting a sense just with the

685
00:37:12,120 --> 00:37:16,120
Speaker 1: people that you're talking about that some of the people

686
00:37:16,239 --> 00:37:19,400
Speaker 1: who may have voted for Trump because they thought that

687
00:37:19,880 --> 00:37:23,920
Speaker 1: it would help their bank accounts are now extremely frustrated

688
00:37:23,920 --> 00:37:27,520
Speaker 1: and disappointed. You know, besides anyone in the headlines, just

689
00:37:27,719 --> 00:37:31,680
Speaker 1: normal people that they kind of thought, well, maybe I'll

690
00:37:31,719 --> 00:37:33,360
Speaker 1: vote for him because it's going to do this and

691
00:37:33,400 --> 00:37:36,160
Speaker 1: this and this for my portfolio or my business.

692
00:37:36,200 --> 00:37:41,520
Speaker 2: But now it's like, especially the ladder, especially the ladder,

693
00:37:42,440 --> 00:37:46,359
Speaker 2: I hear from so many people. We get a ton

694
00:37:46,440 --> 00:37:49,719
Speaker 2: of small business owners writing in when I do my

695
00:37:49,760 --> 00:37:53,640
Speaker 2: TV show every morning, saying there's no way for me

696
00:37:53,719 --> 00:37:56,239
Speaker 2: to move my supply chain around. Basically, you know, I'm

697
00:37:56,239 --> 00:37:59,919
Speaker 2: not even for Apple, it'll be impossible. But for these

698
00:38:00,040 --> 00:38:02,520
Speaker 2: big companies, they can at least pretend to move the

699
00:38:02,600 --> 00:38:06,680
Speaker 2: supply chain or make you know, multi billion dollar commitments

700
00:38:06,680 --> 00:38:09,520
Speaker 2: to the Trump administration that will last as long as

701
00:38:09,560 --> 00:38:11,759
Speaker 2: he does in office, and then you know, keep making

702
00:38:11,760 --> 00:38:14,440
Speaker 2: everything in China. But these smaller businesses, they can't do

703
00:38:14,480 --> 00:38:17,759
Speaker 2: those things. So I got an email this week from

704
00:38:17,840 --> 00:38:21,840
Speaker 2: someone who makes light fixtures in the Southwest. She designs

705
00:38:21,880 --> 00:38:25,120
Speaker 2: them herself. She has a brick and mortar store front.

706
00:38:26,040 --> 00:38:30,120
Speaker 2: You know, she employs Americans, but you know, when they're made,

707
00:38:30,200 --> 00:38:34,400
Speaker 2: they're put together, they're assembled in Asia. I got a

708
00:38:34,440 --> 00:38:39,239
Speaker 2: message from a guy who runs a chocolate confectioner in

709
00:38:39,280 --> 00:38:43,560
Speaker 2: New Jersey and they, you know, they make the product

710
00:38:43,840 --> 00:38:48,640
Speaker 2: in New Jersey, but the ingredients come from Canada and Mexico,

711
00:38:48,840 --> 00:38:52,800
Speaker 2: so they can't get around those twenty five percent tariffs.

712
00:38:52,840 --> 00:38:57,920
Speaker 2: And you know, these are people who voted for Donald

713
00:38:57,920 --> 00:39:01,840
Speaker 2: Trump because they agree read that maybe cars should be

714
00:39:01,840 --> 00:39:03,759
Speaker 2: built in the US, but didn't expect it to hit

715
00:39:03,880 --> 00:39:09,000
Speaker 2: their own business's bottom lines. And now they can't hire employees,

716
00:39:09,040 --> 00:39:11,160
Speaker 2: maybe they have to let some go, they can't reinvest.

717
00:39:12,000 --> 00:39:14,080
Speaker 2: But for the car makers, it's just an absolute nightmare.

718
00:39:14,120 --> 00:39:15,920
Speaker 2: I mean, if you're GM or Ford, I guess you

719
00:39:15,920 --> 00:39:21,720
Speaker 2: can move some production, but you're not going to build

720
00:39:21,719 --> 00:39:25,120
Speaker 2: a new plant that takes like minimum three or four years,

721
00:39:25,160 --> 00:39:28,640
Speaker 2: probably five to seven. And by the time you have

722
00:39:28,800 --> 00:39:32,480
Speaker 2: done that, someone completely different as an office, I mean

723
00:39:32,560 --> 00:39:37,120
Speaker 2: needs stability and long term to do long term planning completely.

724
00:39:37,200 --> 00:39:39,800
Speaker 1: You know, talking with the folks at Cadillac again this week,

725
00:39:40,040 --> 00:39:44,279
Speaker 1: their big thing is we just want a target that

726
00:39:44,320 --> 00:39:49,160
Speaker 1: doesn't move whatever it is. We just need something that

727
00:39:49,320 --> 00:39:52,520
Speaker 1: isn't going to change that we're worried about being kicked

728
00:39:52,560 --> 00:39:54,920
Speaker 1: down the road a bit or whatever, because then we

729
00:39:54,960 --> 00:39:58,200
Speaker 1: can plan for it. But at the moment, it's impossible

730
00:39:58,239 --> 00:40:01,200
Speaker 1: to make any plans because everything is so volatile. So

731
00:40:01,320 --> 00:40:06,560
Speaker 1: Cadillac is you know, even with regulations, emission standards all that.

732
00:40:07,040 --> 00:40:10,000
Speaker 1: I think if they know the target, they will do

733
00:40:10,040 --> 00:40:12,160
Speaker 1: their best to hit it. They'll make it work. They

734
00:40:12,239 --> 00:40:15,319
Speaker 1: just need to know that it's going to remain stationary.

735
00:40:16,560 --> 00:40:18,600
Speaker 2: Yeah, I think they're probably not going to get a

736
00:40:18,600 --> 00:40:21,920
Speaker 2: lot of stability in this with this administration, and I'm

737
00:40:21,960 --> 00:40:24,680
Speaker 2: not that's not a value judgment. I don't think that

738
00:40:24,680 --> 00:40:27,239
Speaker 2: that's what Trump administration is aiming for. Stability is not

739
00:40:27,280 --> 00:40:30,920
Speaker 2: the name of the game for them. I also think,

740
00:40:31,120 --> 00:40:34,200
Speaker 2: like I appreciate products made in the US. I guess

741
00:40:34,200 --> 00:40:37,600
Speaker 2: we've talked about this before, Like I I will spend

742
00:40:37,680 --> 00:40:40,520
Speaker 2: extra money to buy something made in America.

743
00:40:40,640 --> 00:40:40,799
Speaker 4: But.

744
00:40:42,360 --> 00:40:46,200
Speaker 2: If it's at these levels, right at sixty seventy eighty

745
00:40:46,280 --> 00:40:49,879
Speaker 2: thousand dollars, if you're talking about raising those prices ten

746
00:40:50,280 --> 00:40:52,040
Speaker 2: or twenty percent, I'm just out of the game. I

747
00:40:52,040 --> 00:40:55,520
Speaker 2: can't afford to, especially since I have to buy two

748
00:40:55,640 --> 00:40:58,640
Speaker 2: cars right for my family, and can.

749
00:40:58,680 --> 00:41:01,359
Speaker 1: Speaking of can I ask how your motorcycle viewing went

750
00:41:01,480 --> 00:41:04,760
Speaker 1: last weekend? Do you want to give us another so Harley?

751
00:41:05,080 --> 00:41:06,120
Speaker 1: You went to look at a Harley?

752
00:41:06,239 --> 00:41:10,239
Speaker 2: No, no, I I'm doing that this weekend. I'm going to

753
00:41:10,360 --> 00:41:15,440
Speaker 2: Danbury on Saturday to ride a road King and a

754
00:41:15,440 --> 00:41:18,200
Speaker 2: Fat Bob. But this last week I've been riding this

755
00:41:18,280 --> 00:41:22,720
Speaker 2: Buell Supercruiser and I don't think I've ridden something that's

756
00:41:22,840 --> 00:41:28,560
Speaker 2: as unique and exciting and cool in the motorcycle space

757
00:41:28,719 --> 00:41:31,480
Speaker 2: for years. For years.

758
00:41:32,719 --> 00:41:33,760
Speaker 1: That's quite a statement.

759
00:41:33,960 --> 00:41:36,759
Speaker 2: It's I mean, I don't know if it's people say

760
00:41:36,760 --> 00:41:38,600
Speaker 2: it's vapor ware, like they don't think it's ever going

761
00:41:38,680 --> 00:41:41,799
Speaker 2: to really come to market. But this week on my show,

762
00:41:41,840 --> 00:41:44,480
Speaker 2: this coming week on Wednesday, I'm going to interview the CEO,

763
00:41:45,760 --> 00:41:52,160
Speaker 2: Bill Melvin, who bought the manufacturer, bought the patents, bought

764
00:41:52,200 --> 00:41:58,400
Speaker 2: the the name from Eric Buell, and he claims to

765
00:41:58,520 --> 00:42:01,279
Speaker 2: have taken an over six one thousand pre orders for

766
00:42:01,360 --> 00:42:04,600
Speaker 2: this Buele Supercruiser. And that's you know, people put down

767
00:42:04,600 --> 00:42:09,080
Speaker 2: one thousand dollars a piece for a pre order and

768
00:42:09,120 --> 00:42:10,800
Speaker 2: that they're going to start making them in the fall,

769
00:42:10,880 --> 00:42:14,759
Speaker 2: like I'm very likely to put down my own deposit,

770
00:42:15,719 --> 00:42:17,400
Speaker 2: and I kind of hope that I won't get it

771
00:42:17,480 --> 00:42:19,520
Speaker 2: until like late in twenty twenty six, when I can

772
00:42:19,560 --> 00:42:23,239
Speaker 2: afford to buy it. But that's the one thing that

773
00:42:23,280 --> 00:42:26,160
Speaker 2: concerns me is the price. It's pretty high. Twenty six thousand.

774
00:42:26,200 --> 00:42:28,319
Speaker 2: I think it's even twenty six nine nine nine, so

775
00:42:28,400 --> 00:42:31,120
Speaker 2: twenty seven thousand dollars for a motorcycle that is just

776
00:42:31,920 --> 00:42:36,280
Speaker 2: a V twin in a tubular frame with a bule

777
00:42:36,360 --> 00:42:36,920
Speaker 2: swim arm.

778
00:42:37,560 --> 00:42:39,640
Speaker 1: Where does that price come from? How do they arrive

779
00:42:39,680 --> 00:42:40,440
Speaker 1: at that figure?

780
00:42:40,880 --> 00:42:42,680
Speaker 2: I don't know. That's a good question. I will ask

781
00:42:42,760 --> 00:42:45,520
Speaker 2: Bill when I have them on Ask the show on Wednesday.

782
00:42:46,920 --> 00:42:52,399
Speaker 1: And speaking of I'm driving this Lotus Electree suv this

783
00:42:52,480 --> 00:42:57,720
Speaker 1: week and it's interesting. It's an electric suv. The pricing

784
00:42:57,760 --> 00:43:02,000
Speaker 1: starts at two hundred and thirty thousand dollars and that

785
00:43:02,200 --> 00:43:08,600
Speaker 1: seems insane. That's a lot, truly insane. And I'm going

786
00:43:08,640 --> 00:43:11,040
Speaker 1: to ask them as I start writing the review, which

787
00:43:11,080 --> 00:43:15,640
Speaker 1: I haven't yet, but can you walk me through how

788
00:43:15,680 --> 00:43:18,560
Speaker 1: you arrive at this price point? And automakers hate to

789
00:43:18,560 --> 00:43:22,719
Speaker 1: do that because that's, you know, their proprietary business advantage information,

790
00:43:23,760 --> 00:43:27,000
Speaker 1: but I don't. I clearly am not I'm not understanding

791
00:43:27,000 --> 00:43:31,240
Speaker 1: and not seeing where that price comes from in the vehicle,

792
00:43:31,840 --> 00:43:33,680
Speaker 1: you know what I mean. Yeah, so I'd be curious

793
00:43:33,719 --> 00:43:36,200
Speaker 1: to hear the Buele folks.

794
00:43:35,960 --> 00:43:38,759
Speaker 2: I mean for them, for them, they're starting up, right,

795
00:43:38,800 --> 00:43:42,600
Speaker 2: So this is a design that Rolling Sands did for them.

796
00:43:42,800 --> 00:43:44,080
Speaker 2: I'm sure he doesn't come cheap.

797
00:43:44,120 --> 00:43:45,719
Speaker 1: And Sands did that.

798
00:43:45,920 --> 00:43:48,239
Speaker 2: Yeah, he designed it and they're building it, you know,

799
00:43:48,360 --> 00:43:51,719
Speaker 2: in house in Detroit, so they're there. They have to

800
00:43:52,320 --> 00:43:56,080
Speaker 2: put up a factory staff it, you know, get the

801
00:43:56,080 --> 00:44:01,000
Speaker 2: parts and they're mostly American sourced parts. So I think

802
00:44:01,040 --> 00:44:02,880
Speaker 2: I can't remember the number now, but it's over sixty

803
00:44:02,920 --> 00:44:04,800
Speaker 2: percent of the components are going to be American.

804
00:44:04,960 --> 00:44:06,880
Speaker 1: They're the most American.

805
00:44:07,239 --> 00:44:09,839
Speaker 2: They do claim that the most American made brand. I

806
00:44:09,880 --> 00:44:15,759
Speaker 2: don't know. I haven't asked Harley Davidson about the claim that.

807
00:44:15,800 --> 00:44:17,960
Speaker 2: There was an engineer at Buel who told me that

808
00:44:18,080 --> 00:44:21,160
Speaker 2: Harley Mates gets thirty to forty percent of their parts

809
00:44:21,160 --> 00:44:25,919
Speaker 2: are American sourced. That sounds low. And by the way,

810
00:44:26,040 --> 00:44:29,279
Speaker 2: you know Harley's CEO, Yolkin Sites, who has been the

811
00:44:29,320 --> 00:44:31,239
Speaker 2: source of a lot of problems I would think for

812
00:44:31,280 --> 00:44:34,520
Speaker 2: the brand, is stepping down. So he's done just that.

813
00:44:34,840 --> 00:44:37,600
Speaker 1: Yeah, how I are you surprised?

814
00:44:37,719 --> 00:44:42,000
Speaker 2: You think that's actually not at all surprised, because I mean,

815
00:44:42,040 --> 00:44:45,799
Speaker 2: look at the stock chart. It just goes from the

816
00:44:45,920 --> 00:44:49,600
Speaker 2: upper left hand corner to the lower right hand corner, down, down, down.

817
00:44:50,120 --> 00:44:52,120
Speaker 2: I think one of the board members this week actually

818
00:44:52,239 --> 00:44:58,680
Speaker 2: quit because he wanted SITES to leave immediately, and SITES

819
00:44:58,719 --> 00:45:00,960
Speaker 2: is staying on until they find its accessor.

820
00:45:01,680 --> 00:45:03,280
Speaker 1: So we don't know who's coming next.

821
00:45:03,520 --> 00:45:05,359
Speaker 2: We don't know who's coming next. But I think at

822
00:45:05,400 --> 00:45:09,040
Speaker 2: Harley Davidson they had the same problem as a lot,

823
00:45:09,120 --> 00:45:11,719
Speaker 2: you know, most motorcycle makers, and also that Buele is

824
00:45:11,760 --> 00:45:13,919
Speaker 2: going to face, which is that they just don't sell

825
00:45:13,960 --> 00:45:17,960
Speaker 2: products that are affordable or accessible to the kind of

826
00:45:17,960 --> 00:45:20,840
Speaker 2: people that start riding bikes. Who rides bikes like you

827
00:45:20,880 --> 00:45:23,920
Speaker 2: start when you're a teen, right, nobody picks it up

828
00:45:23,920 --> 00:45:28,000
Speaker 2: in his forties. So and you can't afford to pay

829
00:45:28,040 --> 00:45:31,200
Speaker 2: twenty seven thousand dollars for a road glide when you're

830
00:45:31,640 --> 00:45:34,520
Speaker 2: you know, a seventeen year old or when you're you know,

831
00:45:34,920 --> 00:45:37,360
Speaker 2: twenty one, you know, working on the factory floor, like

832
00:45:37,400 --> 00:45:40,200
Speaker 2: you need to buy something that costs multiple thousand dollars

833
00:45:40,239 --> 00:45:44,239
Speaker 2: and only royal Endfield is really doing that right now,

834
00:45:45,960 --> 00:45:46,480
Speaker 2: or maybe.

835
00:45:46,400 --> 00:45:49,719
Speaker 1: Even copies are expensive and those are you know.

836
00:45:49,760 --> 00:45:53,200
Speaker 2: Accessible supposed to be yeah to a.

837
00:45:53,520 --> 00:45:55,960
Speaker 1: Younger rider or a smaller rider or a newer rider

838
00:45:56,080 --> 00:45:57,000
Speaker 1: or any of the above.

839
00:45:57,320 --> 00:46:03,400
Speaker 2: Yeah. So I mean, I think the CEO previous to Sites,

840
00:46:03,400 --> 00:46:07,840
Speaker 2: matt levitych was pushing like a more inexpensive kind of

841
00:46:07,840 --> 00:46:11,640
Speaker 2: mobility oriented product and Sites came in and was like, no,

842
00:46:11,719 --> 00:46:14,840
Speaker 2: we're doing like the big expensive stuff or you know,

843
00:46:15,360 --> 00:46:19,560
Speaker 2: relatively expensive stuff. And also we're gonna do like major

844
00:46:19,680 --> 00:46:24,759
Speaker 2: DEI and ESG, which doesn't gel with like the Harley Faithful, right,

845
00:46:26,120 --> 00:46:29,040
Speaker 2: and we're gonna start producing stuff like in India. That's

846
00:46:29,040 --> 00:46:31,799
Speaker 2: not what the Harley Davidson Forum likes to hear.

847
00:46:32,520 --> 00:46:35,040
Speaker 1: So that's too bad. I mean that that does seem

848
00:46:35,080 --> 00:46:38,960
Speaker 1: to be a fundamental problem that any company would be

849
00:46:39,080 --> 00:46:42,160
Speaker 1: known for being not diverse.

850
00:46:43,520 --> 00:46:45,520
Speaker 2: It's not I don't know if it's about not diverse,

851
00:46:45,640 --> 00:46:46,680
Speaker 2: but it's about.

852
00:46:47,200 --> 00:46:49,879
Speaker 1: I'm putting that in a very polite way. I mean,

853
00:46:51,120 --> 00:46:53,040
Speaker 1: to me, that's just kind of unforgivable.

854
00:46:53,320 --> 00:46:55,160
Speaker 2: I don't think that they're I don't think that that's

855
00:46:55,200 --> 00:46:59,399
Speaker 2: the case though, because they are I think a very

856
00:46:59,440 --> 00:47:02,600
Speaker 2: diverse in terms of like ethnicity.

857
00:47:03,880 --> 00:47:07,280
Speaker 1: Oh, I'm not talking about reality. I'm talking about the perception,

858
00:47:07,960 --> 00:47:13,560
Speaker 1: the reputation and the perception. Yes, we all have friends

859
00:47:13,560 --> 00:47:16,040
Speaker 1: who are people of color who ride Harley's. I can

860
00:47:16,080 --> 00:47:20,120
Speaker 1: list you off several, but that is not the brand reputation.

861
00:47:20,480 --> 00:47:25,160
Speaker 1: The brand reputation is like, you know, older white dudes.

862
00:47:26,000 --> 00:47:29,040
Speaker 2: True, But I think the problem wasn't that they were

863
00:47:29,160 --> 00:47:31,680
Speaker 2: aiming for diversity in terms of their customer base. I

864
00:47:31,719 --> 00:47:34,520
Speaker 2: think the problem was that the probably we shouldn't even

865
00:47:34,600 --> 00:47:35,520
Speaker 2: talk about this stuff on that.

866
00:47:35,640 --> 00:47:37,879
Speaker 1: I mean, I can, I can really dive into this.

867
00:47:38,440 --> 00:47:41,040
Speaker 2: Let's not. Let's not, let's not since.

868
00:47:40,840 --> 00:47:42,480
Speaker 1: We are not a political podcast.

869
00:47:43,840 --> 00:47:46,080
Speaker 2: In fact, let's wrap it up. Sebastian's like, let's wrap

870
00:47:46,120 --> 00:47:46,399
Speaker 2: it up.

871
00:47:47,840 --> 00:47:48,799
Speaker 1: The producers like.

872
00:47:51,200 --> 00:47:53,320
Speaker 2: Is there anything you got coming up next week?

873
00:47:53,719 --> 00:47:53,839
Speaker 4: Uh?

874
00:47:54,480 --> 00:47:56,920
Speaker 1: You know what, Well, the Long Beach Grand Prix is

875
00:47:56,960 --> 00:48:01,240
Speaker 1: this weekend. So that's that's that's big for car lovers

876
00:48:01,239 --> 00:48:05,080
Speaker 1: in LA. I actually think I'm going to a British

877
00:48:05,080 --> 00:48:09,399
Speaker 1: car show on Saturday, which is out sort of toward

878
00:48:09,440 --> 00:48:13,000
Speaker 1: the valley and it's just old British cars. It's sleepy,

879
00:48:13,040 --> 00:48:16,839
Speaker 1: it's very cool. It's not about influencers or content it's

880
00:48:17,000 --> 00:48:19,960
Speaker 1: just a bunch of old Rolls Royce owners.

881
00:48:20,239 --> 00:48:22,919
Speaker 2: Uh. Well, I'm glad there is diversity in that because

882
00:48:22,920 --> 00:48:23,440
Speaker 2: they're foreign.

883
00:48:23,640 --> 00:48:26,600
Speaker 1: Right, what about you, I what do you do?

884
00:48:26,719 --> 00:48:28,440
Speaker 2: Well? I, like I said, I'm gonna go ride this Harley,

885
00:48:28,520 --> 00:48:32,280
Speaker 2: these Harley Davidson's with al at the Connecticut the Danbury,

886
00:48:32,280 --> 00:48:36,239
Speaker 2: Connecticut dealership, and I'm gonna be ringing out this M

887
00:48:36,360 --> 00:48:38,480
Speaker 2: two on the way up and the way back.

888
00:48:39,040 --> 00:48:40,759
Speaker 1: Well, that's such a fun car.

889
00:48:41,000 --> 00:48:44,720
Speaker 2: I mean, it's so much fun. It's it's just classic.

890
00:48:45,120 --> 00:48:48,760
Speaker 2: It is classic, crazy fun. I still think the price

891
00:48:48,800 --> 00:48:51,279
Speaker 2: is a little high, you know, eighty two and a

892
00:48:51,360 --> 00:48:55,600
Speaker 2: half grand. That's before tax, so you know, out the door,

893
00:48:55,640 --> 00:48:58,800
Speaker 2: it's like ninety thousand dollars for an M two. That's

894
00:48:59,120 --> 00:49:02,400
Speaker 2: to me, that's a little crazy. But I guess this

895
00:49:02,560 --> 00:49:06,719
Speaker 2: is the cheapest you'll get it, you know. Yeah, right,

896
00:49:07,280 --> 00:49:10,919
Speaker 2: So yeah, I'm looking forward to talking to you again

897
00:49:11,000 --> 00:49:13,080
Speaker 2: next week at the same time, the same place.

898
00:49:13,400 --> 00:49:14,640
Speaker 1: And you know what, I'm going to be in New

899
00:49:14,680 --> 00:49:15,239
Speaker 1: York next week.

900
00:49:15,280 --> 00:49:16,319
Speaker 2: Oh a different places. Cool.

901
00:49:16,480 --> 00:49:19,000
Speaker 1: I will see you live and live and in living color.

902
00:49:19,360 --> 00:49:22,120
Speaker 2: Right on, all right, I'll introduce you to Bill Melvin

903
00:49:22,200 --> 00:49:23,800
Speaker 2: while you're here, as well wonderful.

904
00:49:24,000 --> 00:49:27,200
Speaker 1: I'm Matt Miller, I'm Hannah Elliott, and this is Bloomberg