Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. I'm Matt Miller and
Speaker 1: I'm Hannah Elliott, and this is hot Pursuit.
Speaker 2: All right, we are tariff tariff tariff today, right on repeat.
Speaker 1: Yeah, I mean sorry, sorry, not sorry, we're talking about tariffs.
Speaker 2: Well you have to talk about because it's going to
Speaker 2: change everything. I mean, it's completely reorganizing a century old
Speaker 2: system of global trade. So and cars are such a
Speaker 2: big part of that.
Speaker 1: This is this is like the entry of a bullet,
Speaker 1: where the entry point is smaller and then the destruction
Speaker 1: or the chaos is as the bullet moves through. And
Speaker 1: I'm not a ballistic expert, but you know, I think
Speaker 1: the ramifications of that are going to be massive. Obviously
Speaker 1: you're smiling, you're are you laughing at my No?
Speaker 2: No, I love it. First of all, I do love
Speaker 2: your comparison. I love fallistics.
Speaker 1: But yeah, I think you know the fallout is going
Speaker 1: to be increasingly massive.
Speaker 2: Well, and we've already seen like crazy fallout. My day
Speaker 2: job is covering the markets over the opening bell every
Speaker 2: day from nine to eleven on Bloomberg Television or bloomber
Speaker 2: dot com. And you know we focus in on single
Speaker 2: stock stories and on on industries, and I'm always kind
Speaker 2: of fighting with people who want to cover banks, and
Speaker 2: people want to cover retail, and people who want to
Speaker 2: cover energy, and people want to cover industrials, you know,
Speaker 2: but I care about cars. And the fun thing for
Speaker 2: me about this tear off chaos, beyond the fact that
Speaker 2: you know, chaos makes things more interesting, is everybody wants
Speaker 2: to talk about automakers. Like all of my producers like, yes,
Speaker 2: now's the time to focus on cars because there's such
Speaker 2: a huge part of this story.
Speaker 1: Yeah, I know, it's it's this. I've actually always known.
Speaker 1: I will cop to that because cars influence everything, and
Speaker 1: you know, most people don't think about cars on a
Speaker 1: day to day daily basis, but they are so woven
Speaker 1: into the fat fabric of our culture. You know, once
Speaker 1: you start messing with the car world, it's going to
Speaker 1: have very wide effects. So I, in a weird way,
Speaker 1: love to hear that all of your people on your
Speaker 1: side want to talk.
Speaker 2: Cars well, and we have the perfect guest to talk
Speaker 2: about it today, Eric Aaron Keating from Cox Automotive, which
Speaker 2: has done in such an incredible job researching and putting
Speaker 2: out intel on the business side of the industry. Plus
Speaker 2: she's a car lover herself. She goes and test drives
Speaker 2: new cars and has opinions on them, just like you
Speaker 2: and I do. And they own Mannheim, which does the auctions,
Speaker 2: the wholesale auctions for dealerships.
Speaker 1: Yeah, she's one of my favorite people to talk to.
Speaker 1: And she's just it's funny. She had a planned scheduled
Speaker 1: vacation this week, so talk about timing for her. She's
Speaker 1: just I don't think she got much vacation, but I'm
Speaker 1: so glad she could join us.
Speaker 2: All right, let's get straight into it. This is Aaron
Speaker 2: Keating from Cox Automotive. I just have a couple of
Speaker 2: personally specific questions. I've seen Cox doing great coverage on
Speaker 2: a number of different issues. One of them is affordable cars,
Speaker 2: Like it seems as if these tariffs, especially if there
Speaker 2: were so called reciprocal tariffs, go back into place in
Speaker 2: ninety days, there won't be any affordable cars for Americans
Speaker 2: to buy in this market.
Speaker 3: So you know what I want to just emphasize here,
Speaker 3: and this is and we were just talking about this
Speaker 3: as a team this morning. The costs that we're seeing
Speaker 3: at are coming in are costs and cost only So
Speaker 3: when we're looking at a tariff, we're saying the automaker
Speaker 3: or the importer of record, which is typically the automaker,
Speaker 3: is going to get hit with this twenty five twenty
Speaker 3: seven and a half percent tiara. How that shows up
Speaker 3: for the customer completely different story. And honestly, I'm not
Speaker 3: sure how quickly automakers are going to jump in to
Speaker 3: jack up the prices on individual models. In fact, I
Speaker 3: would bet almost all of them will look across their
Speaker 3: entire portfolio, and you know, the vehicles that you guys
Speaker 3: are a lot of the times focused on luxury are
Speaker 3: going to get the bump because profitability is there to
Speaker 3: be able to absorb some of that TARA so that
Speaker 3: they can keep competitive at the entry level models and
Speaker 3: or just the vehicles that are available for lower price.
Speaker 3: So just because a thirty thousand dollars vehicle is going
Speaker 3: to get hit with twenty five percent, say like a
Speaker 3: Chevy Tracks, which we know is completely brought in from Korea,
Speaker 3: I can't imagine, at least in my head, how Chevy says, oh,
Speaker 3: let's let's make that thirty thousand dollars car bear the
Speaker 3: hit of that twenty seven and a half percent, right
Speaker 3: or twenty five percent. I think they don't have the
Speaker 3: original MFM, But so I think that that's that's what
Speaker 3: everyone kind of has to keep in mind, is that
Speaker 3: the automaker has a lot of different levers to pull
Speaker 3: to figure out how does this ultimately impact the consumer?
Speaker 3: Prices will rise naturally demand and supply, and the and
Speaker 3: the pull a head buying that we have right now,
Speaker 3: and the fact that inventory might get impacted because OEMs
Speaker 3: might pull back on producing as much until they can
Speaker 3: figure out how they're going to deal with the economic
Speaker 3: challenge of this. But it's not apples to Apple's tariff
Speaker 3: price increase.
Speaker 1: All right, interesting, and that would that that would be
Speaker 1: dependent on the automaker too. Like sare to say, some
Speaker 1: automakers believe that their customers will be tolerant to a
Speaker 1: slightly and some may think, no, we're not, We're not
Speaker 1: going to do that.
Speaker 3: I think it's going to vary across automakers. I think
Speaker 3: it's going to vary across segments models, you know, I
Speaker 3: think maybe even down to regional areas, because again, you're
Speaker 3: going to get impacted by what the dealer is seeing
Speaker 3: on the in the market level conditions. Because MSRP is
Speaker 3: is one way the price changes right. Another way the
Speaker 3: price changes is list price what gets put out to
Speaker 3: the consumer.
Speaker 1: How much is that also related to the breakdown within
Speaker 1: each specific vehicle of which percentage of components are sourced
Speaker 1: or made in the US anywhere else? And I asked
Speaker 1: I of LA like yesterday and that's obviously an American brand,
Speaker 1: And they're not really able to answer right now.
Speaker 2: They don't put that on the Monroney because yeah, and
Speaker 2: the Maroney.
Speaker 3: What it shows you, Yeah, so the Monroney typically will
Speaker 3: show you assembly. Remember for Monroney purposes. According to Nitza,
Speaker 3: US and Canada are combined, even though we know the
Speaker 3: terror situation is Canada MASA right, well not all of
Speaker 3: North America, right, because.
Speaker 4: Mexico is not.
Speaker 3: So it's when it says it's US, it's you'll see
Speaker 3: US slash Canada. So it throws those two into the
Speaker 3: bubble together, even though we know tariffs is actually being
Speaker 3: addressed as Canada Mexico US. So that's a little bit
Speaker 3: interesting and difficult for people to parse through the data.
Speaker 3: Second of all, it will matter based on okay, So
Speaker 3: there's three ways basically at least that we can see
Speaker 3: that the tariffs are going to get put onto the vehicles. One,
Speaker 3: you completely import the assembled vehicle, you pay the full
Speaker 3: bear of the tariff from any other country outside.
Speaker 4: Of North America.
Speaker 3: If you import Canada and Mexico, you get hit with
Speaker 3: the twenty five percent, but they'll give you credit for
Speaker 3: US content, And we don't yet know how they're going
Speaker 3: to certify which pieces really consist of US content. And
Speaker 3: then the third way that they're going to teariff you
Speaker 3: is if you're US assembled, but any componentry parts, steel,
Speaker 3: an aluminum, anything else that's coming into the country that's
Speaker 3: helping you build that vehicle that will have been tariffed
Speaker 3: on its way into assembly.
Speaker 2: Does that make sense, yes, But it's worse than that.
Speaker 2: According to Bloomberg. For example, an Audi Q five assembled
Speaker 2: in Mexico gets hit with a twenty five percent tariff
Speaker 2: for being a car coming in from outside the US
Speaker 2: YEP also a twenty five percent tariff for being a
Speaker 2: non USMCA compliant Mexican product coming from Mexico, and a
Speaker 2: two and a half percent surcharge for not being US
Speaker 2: MCA compliant. If that makes sense, So total tariffs for
Speaker 2: the AUDIQ five coming in from wherever San Luis Bispo
Speaker 2: is going to be fifty two and a half percent.
Speaker 3: Yes, so you're correct the auto tariffs and I haven't
Speaker 3: looked specifically into that car, but you're correct in the stacking.
Speaker 3: So when March twenty six came up, Trump indicated, Hey,
Speaker 3: these auto tariffs are going to be stacked on top
Speaker 3: of existing tariffs that I've already been put into place,
Speaker 3: which included the February first IEPA authorization of twenty five
Speaker 3: percent on Canada, Mexico and the ten percent on China,
Speaker 3: which the ten percent went to twenty percent, and at
Speaker 3: the time they gave the USMCA compliant exemption. So if
Speaker 3: a car is not USMCA compliant, you're correct they were
Speaker 3: subjected to that twenty five percent under the IEBA order
Speaker 3: February first, and that would get stacked on top of
Speaker 3: the twenty five percent that was then issued on March
Speaker 3: twenty six.
Speaker 4: You're correct on that.
Speaker 2: And by the way, is our understanding and do they
Speaker 2: have to? So I'm driving a BMWM two right now,
Speaker 2: test driving it, and it's amazing not currently no, but
Speaker 2: you have that yes, I'm not actually yeah, but so
Speaker 2: I have it and twind in his hair and yeah,
Speaker 2: my hair is flying in the wind.
Speaker 4: No.
Speaker 2: So on the Monroney it says parts content information and
Speaker 2: then it lists major source of foreign parts Germany twenty
Speaker 2: seven percent, Mexico fifteen percent assembled in Mexico, and then
Speaker 2: US Canada parts content six percent.
Speaker 3: Yes, you're right, and the Monroney label. So yes, I
Speaker 3: started to say there and then I and I jump
Speaker 3: to another fact. The Monroney label does. Yes, it will
Speaker 3: typically tell you where the engineer transmission is from, what
Speaker 3: the other percentage of content is, and then what's available
Speaker 3: in the US, and then where it was assembled. I
Speaker 3: have seen varying, so admittedly I haven't done too deep
Speaker 3: into what is the like what does every manufacturer have
Speaker 3: to put on them, but most of them do have those.
Speaker 4: Four or five different outlines exactly just helpful for consumers.
Speaker 2: This engine was put together in Austria, the transmission was
Speaker 2: built in Germany. The whole thing prices out at eighty
Speaker 2: two five, which is already kind of steep for an
Speaker 2: M two. If you think about it, like when you
Speaker 2: were a kid that was that would have been an
Speaker 2: M three and it would have been like forty five
Speaker 2: like Max so sure. And now if if they're not
Speaker 2: USMCA compliant, this M two is going to sell in
Speaker 2: the US, assuming BMW doesn't eat the costs for one
Speaker 2: hundred and like at least one hundred and thirty thousand dollars,
Speaker 2: that's nuts.
Speaker 3: In theory, Well it would cost it would cost them
Speaker 3: manufacturer that much.
Speaker 4: Yes, so correct whether.
Speaker 3: They end up you know, fully giving that to the client.
Speaker 3: And we know BMW has already said, hey, we're gonna
Speaker 3: we're gonna eat the cost for now, I think through
Speaker 3: the end of May, is it? And that, you know,
Speaker 3: likely is an exercise of the automaker to say, what
Speaker 3: does this.
Speaker 4: Look like moving forward? Where do we put the costs?
Speaker 3: How do we afford this so that we don't make
Speaker 3: the end to completely irrelevant?
Speaker 4: Or do we get rid of the end too?
Speaker 3: Because you know what, no matter which way we slice this,
Speaker 3: we're not going to be able to make this at
Speaker 3: an affordable price, and therefore we're gonna.
Speaker 4: Get rid of the model. I mean that's certainly possible
Speaker 4: as well.
Speaker 1: I know, Matt, have you had anyone call and ask
Speaker 1: to buyer in too? Because I'm thinking the idea that
Speaker 1: dealerships are calling people yeah, can we buy.
Speaker 2: Well, this is something else that I wanted to ask about.
Speaker 2: Cox has been doing awesome coverage of the Mannheim Well,
Speaker 2: I think you own the Manheim auctions man, Yes, we do. Yeah,
Speaker 2: but I have heard that we're already seeing like nutsoe
Speaker 2: prices at these auctions. Have you heard any you know,
Speaker 2: anecdotal evidence that dealers are paying sure high prices.
Speaker 4: Sure?
Speaker 3: Yeah, No, we've been seeing increased sales conversion. Jeremy rob
Speaker 3: one of my colleagues, did his monthly movie call on
Speaker 3: Monday with some great you know figures around what we're
Speaker 3: seeing in the used car market. But absolutely, we're starting
Speaker 3: to see the sales conversion rate go up, We're.
Speaker 4: Starting to see the.
Speaker 3: Wholesale costs go up, and we're starting to see listing
Speaker 3: prices go up.
Speaker 4: So one hundred percent.
Speaker 3: You can tell the dealers are saying, you know, we
Speaker 3: got to stack up and make sure that we have
Speaker 3: good supply of new and used.
Speaker 2: So I wonderful'll be back in the situation. When I
Speaker 2: bought my Silverado in twenty twenty two, I went to
Speaker 2: the Chevy dealer to collect the truck when it was
Speaker 2: finally delivered from Mexico, where it was assembled, and they
Speaker 2: had an identical truck on the lot that was used
Speaker 2: with like ten thousand miles for ten thousand dollars more
Speaker 2: than I was paying MSRP. Are we going to start
Speaker 2: seeing that again?
Speaker 4: We might. I mean, I think we're going to see
Speaker 4: a lot of the same.
Speaker 3: Things that we thought about as part for.
Speaker 4: The course during Cold cod.
Speaker 3: The difference is going to be that we're probably going
Speaker 3: to be in a period of high.
Speaker 4: Frenzy, high profit.
Speaker 3: But at the end of the day, we have a
Speaker 3: very different economic situation now for the country as a
Speaker 3: whole than we did in the pandemic, which I think
Speaker 3: is going to slowly but surely towards the end of
Speaker 3: the year tamper demand. We don't have the federal stimulus
Speaker 3: coming into the economy. We know that consumers are not
Speaker 3: as financially stable as they were that and we know
Speaker 3: that that used to be when you know, interest rates
Speaker 3: were at crazy lows and now they're at crazy highs,
Speaker 3: so on and so forth. You know, people aren't moving
Speaker 3: as much, which usually when someone moves it it spurs
Speaker 3: on a purchase of a vehicle. So there's so many
Speaker 3: other things that are happening in the market that lead
Speaker 3: us to believe that while demand might froth quite a
Speaker 3: bit right now, it will likely taper off as we
Speaker 3: get further into the year because of all the other
Speaker 3: extenuating circumstances.
Speaker 1: Are you following it all? This sort of ongoing confusion
Speaker 1: when it comes to vintage vehicles and cars that are
Speaker 1: older than twenty five years, you know, it seemed like
Speaker 1: they were going to get hit and then now there's
Speaker 1: a carve out, but they're still going to get hit
Speaker 1: by the parts tariffs. Do you have any clarity on
Speaker 1: that to share?
Speaker 3: There's a great question. And I listened to you guys
Speaker 3: talking about this the other day, so I love it. Yeah,
Speaker 3: And I had just read yes, yes. So as much
Speaker 3: as I have tried to steep my interest here in
Speaker 3: tariff and myledge grow my knowledge, I have yet to
Speaker 3: officially become a trade lawyer, but I play one on
Speaker 3: TV and I can tell you that it is confusing.
Speaker 3: Low and behold, we're going to have a whole new
Speaker 3: well not news services industry. But let me tell you,
Speaker 3: customs brokers, it's your day. Get out there, go for it, man.
Speaker 3: But I do think there is some confusion because there
Speaker 3: did seem to be an exemption.
Speaker 4: For vehicles that were over twenty five years.
Speaker 3: But then depending on what comes, what specificity there is
Speaker 3: in the annex one, and what actually hits the federal register,
Speaker 3: these are all things we never knew we would know
Speaker 3: anything about. That will tell us a little bit more
Speaker 3: information about which parts and specific will get hit with
Speaker 3: tariffs at what level. So would they get hit by
Speaker 3: the automotive terrafs this is March or twenty sixth if
Speaker 3: they don't appear in that schedule, didn't they get hit
Speaker 3: by the ten percent tariff that was put on all
Speaker 3: countries and eventually bet the reciprocal tariff. It's anyone's guess
Speaker 3: at this point. So this is why you see a
Speaker 3: lot of analysis, you know, paralysis analysis.
Speaker 2: It seems impossible because because Hannah, if you if you
Speaker 2: already don't know the origin of the components of a
Speaker 2: new Cadillac, try figuring out the origin of the components
Speaker 2: of a nineteen ninety seven six thirty five CSI like, right, Well, that's.
Speaker 1: My question is is this deliberately confusing and chaotic or
Speaker 1: is it a question of no one actually knows what
Speaker 1: they're doing? And I mean, is this completely deliberate or
Speaker 1: is this a case of the people in charge making
Speaker 1: the rules are sort of learning as they go and
Speaker 1: figuring out as they go along.
Speaker 3: You know, it's a great question and what I would
Speaker 3: actually say, and I think you guys would agree with this.
Speaker 3: It is the massive uncovering of why we love automotive,
Speaker 3: right but why you know, industry specific information is incredibly
Speaker 3: important when you're thinking about doing blanket moves that might
Speaker 3: impact multiple sectors, and the global automotive industry literally touches
Speaker 3: nearly every sector of the economy. It is incredibly and
Speaker 3: highly complex, and I don't believe it's as deliberate as
Speaker 3: some people might think it is, although there could be
Speaker 3: some deliberate components of it.
Speaker 4: I think it truly is.
Speaker 3: Even people in automotive who've been in it for thirty
Speaker 3: five years are going, huh, actually, where does that come from?
Speaker 3: Or how did that get into our supply chain? So
Speaker 3: I think by its very nature it's incredibly complex, which
Speaker 3: is why, you know, the more individuals that are out
Speaker 3: there that have been doing this for a long time
Speaker 3: and have that deep, deep knowledge of the supply chain
Speaker 3: are going to come in real handy.
Speaker 4: To trying to dig this apart and figure out Wait
Speaker 4: a minute.
Speaker 3: Because you hit you need a trade layer, you need
Speaker 3: a customs broker, you need a supply to it expert.
Speaker 3: You know, you're going to need several people at the
Speaker 3: table to mince through all of the details because you're
Speaker 3: likely to cross over a couple of different areas of
Speaker 3: expertise to make a final declaration of like, aha, yes,
Speaker 3: this part subject to sixteen point five percent effective terrorfreate right.
Speaker 3: You know, I think it's gonna it's going to take
Speaker 3: a lot of people to get there.
Speaker 1: Yeah, okay, good.
Speaker 2: I did I have I know you got to go,
Speaker 2: but I have one last question. You don't just do
Speaker 2: the business end of this. You also love cars. And
Speaker 2: I know last time we talked to you, you were
Speaker 2: on a press junket. So I was going to ask,
Speaker 2: what's your favorite car of the currently assembled in the
Speaker 2: US vehicles, Like, if you had to pick one that's
Speaker 2: not assembled outside of this border, what would you choose?
Speaker 2: And it's not like there's a broad variety to choose from, right,
Speaker 2: because they're mostly trucks.
Speaker 3: Yeah, yeah, exactly fifty percent the chicken tags. That's something
Speaker 3: we should all consider in looking at this right now.
Speaker 3: Oh my goodness, you asked a tough one. Because I've
Speaker 3: been so focused on what's imported. I don't know that
Speaker 3: I've been paying a ton of attention to exactly what's
Speaker 3: actually built in the US.
Speaker 2: Like, I mean, do you like the Rivan? Do you
Speaker 2: like the Lucid? So you were going to ev No, no, no, no,
Speaker 2: I wouldn't choose an EV. I would probably choose an
Speaker 2: F one fifty also, or yeah, or a Tahoe. I
Speaker 2: like the Tahoes and suburbans, you know, I.
Speaker 3: Mean Honda and Toyota both. Yeah, they both have a
Speaker 3: ton of vehicles. I mean eighty percent of Toyotas are
Speaker 3: assembled in the US.
Speaker 4: Same thing with Honda.
Speaker 2: There's Mustangs and Corvettes, right.
Speaker 4: There's Mustangs and corvettes. Yeah, I mean I could list
Speaker 4: you fifty cars that are not assembled in the US
Speaker 4: right now. You put me on the spot.
Speaker 2: Well, the Mustang is the only one of the only vs.
Speaker 2: The vights you can get with a stick can be
Speaker 2: listed on two fingers, right, Mustang GT and Cadillac CT
Speaker 2: five V black wing. Right, and that'd probably my choice.
Speaker 4: Yeah, I'll go with your choice. I'll let you check
Speaker 4: I'll let you.
Speaker 3: Pick it out for me about that, Thanks Aaron, I
Speaker 3: trust your judgment, really appreciate your time.
Speaker 1: Thank you, Aaron. We all know my answer to that.
Speaker 1: There's only one answer, and that's the Corvette.
Speaker 2: You know what, I might agree. I have this internal
Speaker 2: dilemma or this internal debate all the time if I
Speaker 2: were going to choose a sports car or like, would
Speaker 2: I choose a Cadillac CT five V black Wing or
Speaker 2: would I choose a Corvette? And there you could have
Speaker 2: also a ZO six or ZL one.
Speaker 1: I don't know, thanks American specifically American branded HIC.
Speaker 2: I mean, if I had another one hundred and thirty
Speaker 2: forty fifty grand to buy a sweet car, those two
Speaker 2: would be way up there my short list, way up there,
Speaker 2: And I don't know which one I would rather have.
Speaker 2: You know, they're different. For you can't get a stick
Speaker 2: with the Corvette. But do I care that much about
Speaker 2: three pedals? Maybe not?
Speaker 1: Oh, I mean, I guess because the.
Speaker 2: Cadillac is horrible to look at it. It's very ugly, I know.
Speaker 1: But you could fit your kids in the back and.
Speaker 2: It has a supercharger. You know, you can't get a
Speaker 2: new Corvette?
Speaker 1: Was the real question is what is more important to
Speaker 1: you the engine or the transmission setup.
Speaker 2: It's a yeah, this is we can have a whole
Speaker 2: show on the Corvette versus the Cadillac Cet.
Speaker 1: Everyone to email us with what you think is more important.
Speaker 2: I think, right, yeah, that would be a great email.
Speaker 2: Our email is hot pursuit at Bloomberg dot net. Isn't
Speaker 2: that right?
Speaker 1: Yeah, hot pursuit at Bloomberg dot net. I honestly would
Speaker 1: like to hear what is more important to the born
Speaker 1: and bred automotive file.
Speaker 2: I wonder who else has this internal debate? Probably a
Speaker 2: lot of people, because those are two kind of halo vehicles,
Speaker 2: right right. One of them is looks really cool and
Speaker 2: has an amazing and complex interior, maybe not the best
Speaker 2: sort of reputation. The other one looks awful but is
Speaker 2: just mind blowing in terms of the powertrain, has a
Speaker 2: stick shift option and a very elegant, I think interior.
Speaker 1: You know, I think about this a lot when it
Speaker 1: comes to houses in a way, like would you rather
Speaker 1: live in a house that looks very nondescript on the
Speaker 1: outside but it's really cool on the inside, or something
Speaker 1: that looks really beautiful on the outside. But it's not
Speaker 1: especially charming on the inside.
Speaker 2: Definitely the former, Definitely the former. Yeah, you know, when
Speaker 2: I started when I started doing when I started going
Speaker 2: a lot to southern Spain, and because my wife is Spanish,
Speaker 2: I do that now a lot. I noticed there's this style,
Speaker 2: especially like in Sevilla Cordoba, Granada, and I think it's
Speaker 2: from the Moors when they, you know, ruled they ruled
Speaker 2: Spain for hundreds of years, and they have this thing
Speaker 2: where on the outside they don't want to show their wealth,
Speaker 2: so it just looks like, you know, a stucco building,
Speaker 2: a wall, and then you go in and these gardens
Speaker 2: are beautiful and the interiors are amazing and there's like
Speaker 2: water fountains, and yes, I would rather have that for sure.
Speaker 1: Yeah, I'm with you on that. I'm really with you
Speaker 1: on that, because you're when you're inside, that's your space.
Speaker 1: You're inhabiting that.
Speaker 2: I mean, yeah, I need to make a quick correction,
Speaker 2: speaking of email, before we get flooded with I said
Speaker 2: nineteen ninety seven six point thirty five CSI and the
Speaker 2: E twenty four six series. They stopped making it in
Speaker 2: nineteen eighty nine.
Speaker 1: So okay, if anyone would have called you out on that.
Speaker 1: I would have. I don't know the difference. I would
Speaker 1: have been very surprised.
Speaker 2: I've been talking with some car blogger bros. A lot lately. Yeah,
Speaker 2: this is one of those things that they in on instantaneously.
Speaker 1: You know, I will never Honestly, those guys are the
Speaker 1: best fact checkers because you get I mean, you get
Speaker 1: nothing past them. I will. I will never be able
Speaker 1: to get anything past that type of reader, which is
Speaker 1: a good thing, you know.
Speaker 2: Yeah, for sure, if I ever had written nineteen ninety
Speaker 2: seven six thirty five CSI on opposite lock, I would
Speaker 2: have been lambastard, you.
Speaker 1: Know, as a fool for such a careless error.
Speaker 2: What a great car though the twenty four to six
Speaker 2: series No.
Speaker 1: I was with Cadillac this week for their Celestic.
Speaker 2: Ah cool, all right, so.
Speaker 1: You should talk about that because Cadillac is on the
Speaker 1: brain this week.
Speaker 2: Let's do it. And you also have driven the Escalade IQ.
Speaker 1: Yes, and that review is going live on Monday. It'll
Speaker 1: be in Business Week magazine and the print issue and
Speaker 1: it will be online on Monday after this episode goes live.
Speaker 1: So yeah, we should talk Cadillac and I drove the
Speaker 1: Celestic yesterday all day all around lap up in the
Speaker 1: mountains in Hollywood, in downtown.
Speaker 2: So wait, is this the like three hundred thousand dollars.
Speaker 2: What's the story with the Celestic because it has got
Speaker 2: a polarizing design.
Speaker 1: Which I applied polarizing and I might have I might
Speaker 1: have figured it out. So this is the three hundred
Speaker 1: and sixty thousand dollars all electric vehicle that it's a
Speaker 1: two plus two car. The wheelbase is as long as
Speaker 1: an escalade wheelbase, and it is, but it is as
Speaker 1: tall as the CT five, so it's the same height
Speaker 1: as a sedan. But it's wheelbase is as long as
Speaker 1: an escalade. It has a hatchback rear and Cadillac is
Speaker 1: not marketing this as a wagon, but I think with
Speaker 1: the rear end, the rear end is problematic. It's difficult
Speaker 1: to digest. And I really think their launch color of
Speaker 1: bright orange, like a McLaren style orange, has really really
Speaker 1: hurt that car because it's not flattering to the car
Speaker 1: at all.
Speaker 2: Yeah, it doesn't look good enough.
Speaker 1: I did have the opportunity to see the car in
Speaker 1: multiple different colors this week, and I also started sort
Speaker 1: of framing the car as a wagon and that helps
Speaker 1: me to understand the car better. You know, that car
Speaker 1: in like sort of a smoky brown metallic is actually
Speaker 1: rather beautiful, and I started imagining it sort of like
Speaker 1: the Lamborghini Espata from the seventies, or a citron An
Speaker 1: sm or even a Portion nine twenty eight. And when
Speaker 1: you start talking about it in those terms, I can
Speaker 1: kind of see it. I can see it. And I
Speaker 1: don't think any of those cars was particularly critically or
Speaker 1: popularly acclaimed when they debuted, but of course now as
Speaker 1: vintage models, we really love them. So so yeah, Cadillac
Speaker 1: is swinging for the fences, as it were, with this one.
Speaker 1: They have been working on this for really for fifteen years,
Speaker 1: with a lot of concepts, like if you remember the Eskala,
Speaker 1: the Cadillac I think it was this, but.
Speaker 2: Not always as an electric, right, because that's where you
Speaker 2: do when you say hybrid.
Speaker 1: Yes, so the last five years they committed, you know,
Speaker 1: they committed to making this an electric vehicle five years
Speaker 1: ago when it looked like everyone was going to be
Speaker 1: electric by twenty twenty five. Obviously that hasn't happened. And
Speaker 1: I did ask multiple of the engineers yesterday, could you
Speaker 1: have pivoted two years ago, when you guys, when everyone
Speaker 1: kind of realized hybrids are important and they might be
Speaker 1: here to stay for quite a while, you have pivoted
Speaker 1: to hybrid and they all said, yes, yes, but we
Speaker 1: wanted to stick with the plan and stay the course
Speaker 1: and you know, make a very audacious move. So this
Speaker 1: is their audacious move. Matt, tell me your thoughts. I
Speaker 1: can see you looking, I can see you sort of
Speaker 1: studying this car. I'm dying to know what you think.
Speaker 2: So I'm not a fan of French cars, and I
Speaker 2: think the comparison to Citoya is pretty spot on. Yeah,
Speaker 2: for sure it. I like it much better when I
Speaker 2: think of a nine to twenty eight. So I think
Speaker 2: that's a really interesting way to frame it. I do
Speaker 2: applaud any car maker that is willing to take such
Speaker 2: a bold step, and it doesn't matter if I like
Speaker 2: it or not. For example, I think the Tesla cyber
Speaker 2: truck is horrendous, but I think it's so cool that
Speaker 2: they actually made that. That was before you know, Elon
Speaker 2: lost his mind. But uh, but for me, like three
Speaker 2: hundred and sixty thousand dollars, When you say that and
Speaker 2: then you follow with all electric I'm like tuning out
Speaker 2: because I don't care anymore. You know, you were talking
Speaker 2: with Aaron about retailers that go away from technology, right
Speaker 2: or or your your take. I like on luxury, which
Speaker 2: is that things have to be real wood, leather, and
Speaker 2: I need to smell, you know, the gas. Like I
Speaker 2: know that an electric powertrain is also real, But there's
Speaker 2: something to me about the mechanical moving parts of an
Speaker 2: internal combustion engine and the way it operates, probably because
Speaker 2: of my you know, my age and my history, but
Speaker 2: a lot of us have that. So yeah, I can't.
Speaker 2: I can't think about luxury and electric in the same breath.
Speaker 2: I could be wrong. I've never driven like the Rolls
Speaker 2: roy Specter and you have so, and I understand why
Speaker 2: that would be perfect for that magic carpet ride. Like effort,
Speaker 2: this motivation totally, and so my whole thinking on this
Speaker 2: could be changed when I drive, when I drive one
Speaker 2: of these things, but I haven't yet.
Speaker 1: So I bet you, I bet you will have that opportunity.
Speaker 1: I think Cadillac has had that car out and about
Speaker 1: and they're going to have it more out now. I
Speaker 1: totally agree. You know, Cadillac is going to make twenty
Speaker 1: five of these in the first year. They've told me
Speaker 1: they've sold twenty two of that twenty five, so they're
Speaker 1: you know, they're not mass producing them. I'm sure they're
Speaker 1: This is a lost leader, and it's about trying to
Speaker 1: recapture some of what Cadillac used to mean. And we
Speaker 1: did talk a lot about how to tap into I mean,
Speaker 1: Cadillac used to be the standard of the world. As
Speaker 1: their tagline was, it was this the world's standard for
Speaker 1: luxury at one time. And I do think it's very
Speaker 1: fascinating that now we're being forced to consider what does
Speaker 1: American luxury mean when when we're thinking about tariffs affecting
Speaker 1: a lot of our other wonderful luxury atoms that are
Speaker 1: being imported. To your point about the electric vehicle, I agree,
Speaker 1: you know, it's I don't think it's wrong that Rolls
Speaker 1: Royce made an electric powertrain for the Specter that does
Speaker 1: go at. Rolls Royce had already talked about making electric
Speaker 1: vehicles one hundred years ago, so that seems very in
Speaker 1: a way authentic Cadillac. It's a little bit different, I
Speaker 1: can tell you. I'm I'm undecided. I know it's a
Speaker 1: really bad time to be selling a really expensive EV
Speaker 1: nobody wants them. I don't necessarily think it was wrong
Speaker 1: they did it. I can't talk more about it because
Speaker 1: I'm under a bargo, but I.
Speaker 2: Don't I'm sure. I'm sure that it drives amazingly well,
Speaker 2: and I have driven, by the way. I was talking
Speaker 2: to some listeners recently who who reiterated the idea that
Speaker 2: I'm antiev which isn't true. I've driven electric vehicles that
Speaker 2: I found to be rewarding and luxurious. I really enjoy
Speaker 2: I really enjoy the Audi Etron, for example. I really
Speaker 2: enjoy the Mercedes EQS and it's super luxurious, right, and
Speaker 2: I think the electric power train fits. I love the BMW,
Speaker 2: the electric BMW seven series, the I seven. That's a
Speaker 2: very luxurious car, and it's very expensive, and I think
Speaker 2: it's probably to some extent worth it. But I and
Speaker 2: I'm and I'm sure that the Cadillac Escalade IQ is
Speaker 2: going to be my favorite electric vehicle of all time,
Speaker 2: because you know, I love the pickup trucks, the electric
Speaker 2: pickup trucks like the Sierra EV, and I love the
Speaker 2: GMC Hummer. I feel like I feel like Cadillac IQ
Speaker 2: is the perfect vehicle for that because it's not as
Speaker 2: sort of doesn't have the silly image as much of
Speaker 2: as the Hummer does. And it doesn't I won't feel
Speaker 2: like I'm overpaying, which I would with like any Tron
Speaker 2: or else. Yeah, you know, two hundred kilot hour battery
Speaker 2: does a lot to win my money, but I don't
Speaker 2: know for me. The I mean, if it's really luxury,
Speaker 2: like four hundred thousand dollars, then you.
Speaker 1: Know, a big, a big selling point to this vehicle.
Speaker 1: And really what they're leveraging is the fact that each
Speaker 1: one will be made tailored to the customer specifications. There's
Speaker 1: no standard entry level Celestic. Each one is a made
Speaker 1: to order thing that you you will you know, pick
Speaker 1: the colors. It's not it's not extensive bespoken, but it's
Speaker 1: it's pretty good, you know. So if you want, if
Speaker 1: you already owned a Rolls Royce and a Bentley and
Speaker 1: an Aston Martin and you thought, oh, it'll be really
Speaker 1: fun to have an American vehicle that I can have,
Speaker 1: you can know, I can tell a story with the
Speaker 1: colors and the trims and all of that. You know,
Speaker 1: it's it's a bit of a high price point vehicle,
Speaker 1: but yeah, I mean they don't have to sell that
Speaker 1: many of them. I had dinner with Michael Simcoe, who's
Speaker 1: the head designer, the other night, and he still believes
Speaker 1: that electric vehicles are the future, even though nobody wants
Speaker 1: to buy them.
Speaker 2: Now, I'm sure he's not wrong.
Speaker 1: He really doubled down and said, hey, eventually, this is
Speaker 1: where we're going, no question about it. So we're staying
Speaker 1: the course.
Speaker 2: It's for sure. It's true as a utility, you know,
Speaker 2: as a as an appliance, it makes total sense. But
Speaker 2: that's not what this is supposed to be. Right. In
Speaker 2: any case, I think a lot of it has to
Speaker 2: do with my own biases. I'm still confers founded by
Speaker 2: the effect these tariffs are going to have on the
Speaker 2: ultimate driving machine, on the nine to eleven on Ducati motorcycles, Like,
Speaker 2: what's going to happen? I just I look at this.
Speaker 2: When I saw this, Monroney really really drove it home
Speaker 2: for me and for those who don't know. Car makers
Speaker 2: put out these labels that are I think regulated by
Speaker 2: by NITZA, and they have to include certain pieces of
Speaker 2: information like vehicle content. So again the M two it
Speaker 2: says US Canadian parts content six percent. Major source of
Speaker 2: foreign parts Germany twenty seven percent, Mexico fifteen percent, Final
Speaker 2: vehicle assembly San Luis, Potosi, Mexico Engine, Austria Transmission, Germany.
Speaker 2: This car is not getting sold in the US without
Speaker 2: massive tariffs. And I think, you know, BMW obviously produces
Speaker 2: so much here, and I think I think BMW is
Speaker 2: one of the biggest exporters in America. They export double
Speaker 2: digit billions of dollars for their products. But those are
Speaker 2: all X series, so that it's X three x five
Speaker 2: x seven, you know, the M two, or that any
Speaker 2: two series three series, which ironically is what they started
Speaker 2: producing here in the US and the seventies. But none
Speaker 2: of that's made here. So what are they gonna do?
Speaker 2: And I think of my beloved Ducoatti motorcycles, you know,
Speaker 2: I mean, they're already pretty pricey. I can put together
Speaker 2: a multi strata on the configurator and get well into
Speaker 2: thirty thousand dollars. And if and if it's gonna be
Speaker 2: tariffed at twenty five percent, which I'm not positive about,
Speaker 2: I don't know how motorcycles will be handled. But it's,
Speaker 2: you know, all of a sudden, it's it's gonna cost
Speaker 2: closer to forty right.
Speaker 1: So yeah, I don't it. Do you think that now?
Speaker 1: I mean, it would seem natural that now a car
Speaker 1: like a BMW would be even more of a status symbol.
Speaker 1: I mean it, five years from now, if these tariffs
Speaker 1: stick and you know, everything continues down this path, five
Speaker 1: or ten years from now, hypothetically those cars will be
Speaker 1: considered extremely like signifiers of status.
Speaker 2: Yeah, but like the point of the three series is
Speaker 2: for uh, you know, I know someone who's just made
Speaker 2: it to middle management, or you know, a young person
Speaker 2: who's just started on Wall Street, or or someone who
Speaker 2: saved money and cares about driving, like I imagine that BMW
Speaker 2: if this kind of thing, if this tariff sticks, I
Speaker 2: imagine they'll have to assemble them at Spartanberg again. And
Speaker 2: for a company like I don't know, Ducati is Italian
Speaker 2: is in its DNA right, so they'll they'll never be
Speaker 2: able to make a Panagali here, but I imagine they
Speaker 2: might at least consider, you know, for the dirt bikes
Speaker 2: they're making off road vehicles now, to assemble those somewhere
Speaker 2: in the US.
Speaker 1: You know, are you getting a sense just with the
Speaker 1: people that you're talking about that some of the people
Speaker 1: who may have voted for Trump because they thought that
Speaker 1: it would help their bank accounts are now extremely frustrated
Speaker 1: and disappointed. You know, besides anyone in the headlines, just
Speaker 1: normal people that they kind of thought, well, maybe I'll
Speaker 1: vote for him because it's going to do this and
Speaker 1: this and this for my portfolio or my business.
Speaker 2: But now it's like, especially the ladder, especially the ladder,
Speaker 2: I hear from so many people. We get a ton
Speaker 2: of small business owners writing in when I do my
Speaker 2: TV show every morning, saying there's no way for me
Speaker 2: to move my supply chain around. Basically, you know, I'm
Speaker 2: not even for Apple, it'll be impossible. But for these
Speaker 2: big companies, they can at least pretend to move the
Speaker 2: supply chain or make you know, multi billion dollar commitments
Speaker 2: to the Trump administration that will last as long as
Speaker 2: he does in office, and then you know, keep making
Speaker 2: everything in China. But these smaller businesses, they can't do
Speaker 2: those things. So I got an email this week from
Speaker 2: someone who makes light fixtures in the Southwest. She designs
Speaker 2: them herself. She has a brick and mortar store front.
Speaker 2: You know, she employs Americans, but you know, when they're made,
Speaker 2: they're put together, they're assembled in Asia. I got a
Speaker 2: message from a guy who runs a chocolate confectioner in
Speaker 2: New Jersey and they, you know, they make the product
Speaker 2: in New Jersey, but the ingredients come from Canada and Mexico,
Speaker 2: so they can't get around those twenty five percent tariffs.
Speaker 2: And you know, these are people who voted for Donald
Speaker 2: Trump because they agree read that maybe cars should be
Speaker 2: built in the US, but didn't expect it to hit
Speaker 2: their own business's bottom lines. And now they can't hire employees,
Speaker 2: maybe they have to let some go, they can't reinvest.
Speaker 2: But for the car makers, it's just an absolute nightmare.
Speaker 2: I mean, if you're GM or Ford, I guess you
Speaker 2: can move some production, but you're not going to build
Speaker 2: a new plant that takes like minimum three or four years,
Speaker 2: probably five to seven. And by the time you have
Speaker 2: done that, someone completely different as an office, I mean
Speaker 2: needs stability and long term to do long term planning completely.
Speaker 1: You know, talking with the folks at Cadillac again this week,
Speaker 1: their big thing is we just want a target that
Speaker 1: doesn't move whatever it is. We just need something that
Speaker 1: isn't going to change that we're worried about being kicked
Speaker 1: down the road a bit or whatever, because then we
Speaker 1: can plan for it. But at the moment, it's impossible
Speaker 1: to make any plans because everything is so volatile. So
Speaker 1: Cadillac is you know, even with regulations, emission standards all that.
Speaker 1: I think if they know the target, they will do
Speaker 1: their best to hit it. They'll make it work. They
Speaker 1: just need to know that it's going to remain stationary.
Speaker 2: Yeah, I think they're probably not going to get a
Speaker 2: lot of stability in this with this administration, and I'm
Speaker 2: not that's not a value judgment. I don't think that
Speaker 2: that's what Trump administration is aiming for. Stability is not
Speaker 2: the name of the game for them. I also think,
Speaker 2: like I appreciate products made in the US. I guess
Speaker 2: we've talked about this before, Like I I will spend
Speaker 2: extra money to buy something made in America.
Speaker 4: But.
Speaker 2: If it's at these levels, right at sixty seventy eighty
Speaker 2: thousand dollars, if you're talking about raising those prices ten
Speaker 2: or twenty percent, I'm just out of the game. I
Speaker 2: can't afford to, especially since I have to buy two
Speaker 2: cars right for my family, and can.
Speaker 1: Speaking of can I ask how your motorcycle viewing went
Speaker 1: last weekend? Do you want to give us another so Harley?
Speaker 1: You went to look at a Harley?
Speaker 2: No, no, I I'm doing that this weekend. I'm going to
Speaker 2: Danbury on Saturday to ride a road King and a
Speaker 2: Fat Bob. But this last week I've been riding this
Speaker 2: Buell Supercruiser and I don't think I've ridden something that's
Speaker 2: as unique and exciting and cool in the motorcycle space
Speaker 2: for years. For years.
Speaker 1: That's quite a statement.
Speaker 2: It's I mean, I don't know if it's people say
Speaker 2: it's vapor ware, like they don't think it's ever going
Speaker 2: to really come to market. But this week on my show,
Speaker 2: this coming week on Wednesday, I'm going to interview the CEO,
Speaker 2: Bill Melvin, who bought the manufacturer, bought the patents, bought
Speaker 2: the the name from Eric Buell, and he claims to
Speaker 2: have taken an over six one thousand pre orders for
Speaker 2: this Buele Supercruiser. And that's you know, people put down
Speaker 2: one thousand dollars a piece for a pre order and
Speaker 2: that they're going to start making them in the fall,
Speaker 2: like I'm very likely to put down my own deposit,
Speaker 2: and I kind of hope that I won't get it
Speaker 2: until like late in twenty twenty six, when I can
Speaker 2: afford to buy it. But that's the one thing that
Speaker 2: concerns me is the price. It's pretty high. Twenty six thousand.
Speaker 2: I think it's even twenty six nine nine nine, so
Speaker 2: twenty seven thousand dollars for a motorcycle that is just
Speaker 2: a V twin in a tubular frame with a bule
Speaker 2: swim arm.
Speaker 1: Where does that price come from? How do they arrive
Speaker 1: at that figure?
Speaker 2: I don't know. That's a good question. I will ask
Speaker 2: Bill when I have them on Ask the show on Wednesday.
Speaker 1: And speaking of I'm driving this Lotus Electree suv this
Speaker 1: week and it's interesting. It's an electric suv. The pricing
Speaker 1: starts at two hundred and thirty thousand dollars and that
Speaker 1: seems insane. That's a lot, truly insane. And I'm going
Speaker 1: to ask them as I start writing the review, which
Speaker 1: I haven't yet, but can you walk me through how
Speaker 1: you arrive at this price point? And automakers hate to
Speaker 1: do that because that's, you know, their proprietary business advantage information,
Speaker 1: but I don't. I clearly am not I'm not understanding
Speaker 1: and not seeing where that price comes from in the vehicle,
Speaker 1: you know what I mean. Yeah, so I'd be curious
Speaker 1: to hear the Buele folks.
Speaker 2: I mean for them, for them, they're starting up, right,
Speaker 2: So this is a design that Rolling Sands did for them.
Speaker 2: I'm sure he doesn't come cheap.
Speaker 1: And Sands did that.
Speaker 2: Yeah, he designed it and they're building it, you know,
Speaker 2: in house in Detroit, so they're there. They have to
Speaker 2: put up a factory staff it, you know, get the
Speaker 2: parts and they're mostly American sourced parts. So I think
Speaker 2: I can't remember the number now, but it's over sixty
Speaker 2: percent of the components are going to be American.
Speaker 1: They're the most American.
Speaker 2: They do claim that the most American made brand. I
Speaker 2: don't know. I haven't asked Harley Davidson about the claim that.
Speaker 2: There was an engineer at Buel who told me that
Speaker 2: Harley Mates gets thirty to forty percent of their parts
Speaker 2: are American sourced. That sounds low. And by the way,
Speaker 2: you know Harley's CEO, Yolkin Sites, who has been the
Speaker 2: source of a lot of problems I would think for
Speaker 2: the brand, is stepping down. So he's done just that.
Speaker 1: Yeah, how I are you surprised?
Speaker 2: You think that's actually not at all surprised, because I mean,
Speaker 2: look at the stock chart. It just goes from the
Speaker 2: upper left hand corner to the lower right hand corner, down, down, down.
Speaker 2: I think one of the board members this week actually
Speaker 2: quit because he wanted SITES to leave immediately, and SITES
Speaker 2: is staying on until they find its accessor.
Speaker 1: So we don't know who's coming next.
Speaker 2: We don't know who's coming next. But I think at
Speaker 2: Harley Davidson they had the same problem as a lot,
Speaker 2: you know, most motorcycle makers, and also that Buele is
Speaker 2: going to face, which is that they just don't sell
Speaker 2: products that are affordable or accessible to the kind of
Speaker 2: people that start riding bikes. Who rides bikes like you
Speaker 2: start when you're a teen, right, nobody picks it up
Speaker 2: in his forties. So and you can't afford to pay
Speaker 2: twenty seven thousand dollars for a road glide when you're
Speaker 2: you know, a seventeen year old or when you're you know,
Speaker 2: twenty one, you know, working on the factory floor, like
Speaker 2: you need to buy something that costs multiple thousand dollars
Speaker 2: and only royal Endfield is really doing that right now,
Speaker 2: or maybe.
Speaker 1: Even copies are expensive and those are you know.
Speaker 2: Accessible supposed to be yeah to a.
Speaker 1: Younger rider or a smaller rider or a newer rider
Speaker 1: or any of the above.
Speaker 2: Yeah. So I mean, I think the CEO previous to Sites,
Speaker 2: matt levitych was pushing like a more inexpensive kind of
Speaker 2: mobility oriented product and Sites came in and was like, no,
Speaker 2: we're doing like the big expensive stuff or you know,
Speaker 2: relatively expensive stuff. And also we're gonna do like major
Speaker 2: DEI and ESG, which doesn't gel with like the Harley Faithful, right,
Speaker 2: and we're gonna start producing stuff like in India. That's
Speaker 2: not what the Harley Davidson Forum likes to hear.
Speaker 1: So that's too bad. I mean that that does seem
Speaker 1: to be a fundamental problem that any company would be
Speaker 1: known for being not diverse.
Speaker 2: It's not I don't know if it's about not diverse,
Speaker 2: but it's about.
Speaker 1: I'm putting that in a very polite way. I mean,
Speaker 1: to me, that's just kind of unforgivable.
Speaker 2: I don't think that they're I don't think that that's
Speaker 2: the case though, because they are I think a very
Speaker 2: diverse in terms of like ethnicity.
Speaker 1: Oh, I'm not talking about reality. I'm talking about the perception,
Speaker 1: the reputation and the perception. Yes, we all have friends
Speaker 1: who are people of color who ride Harley's. I can
Speaker 1: list you off several, but that is not the brand reputation.
Speaker 1: The brand reputation is like, you know, older white dudes.
Speaker 2: True, But I think the problem wasn't that they were
Speaker 2: aiming for diversity in terms of their customer base. I
Speaker 2: think the problem was that the probably we shouldn't even
Speaker 2: talk about this stuff on that.
Speaker 1: I mean, I can, I can really dive into this.
Speaker 2: Let's not. Let's not, let's not since.
Speaker 1: We are not a political podcast.
Speaker 2: In fact, let's wrap it up. Sebastian's like, let's wrap
Speaker 2: it up.
Speaker 1: The producers like.
Speaker 2: Is there anything you got coming up next week?
Speaker 4: Uh?
Speaker 1: You know what, Well, the Long Beach Grand Prix is
Speaker 1: this weekend. So that's that's that's big for car lovers
Speaker 1: in LA. I actually think I'm going to a British
Speaker 1: car show on Saturday, which is out sort of toward
Speaker 1: the valley and it's just old British cars. It's sleepy,
Speaker 1: it's very cool. It's not about influencers or content it's
Speaker 1: just a bunch of old Rolls Royce owners.
Speaker 2: Uh. Well, I'm glad there is diversity in that because
Speaker 2: they're foreign.
Speaker 1: Right, what about you, I what do you do?
Speaker 2: Well? I, like I said, I'm gonna go ride this Harley,
Speaker 2: these Harley Davidson's with al at the Connecticut the Danbury,
Speaker 2: Connecticut dealership, and I'm gonna be ringing out this M
Speaker 2: two on the way up and the way back.
Speaker 1: Well, that's such a fun car.
Speaker 2: I mean, it's so much fun. It's it's just classic.
Speaker 2: It is classic, crazy fun. I still think the price
Speaker 2: is a little high, you know, eighty two and a
Speaker 2: half grand. That's before tax, so you know, out the door,
Speaker 2: it's like ninety thousand dollars for an M two. That's
Speaker 2: to me, that's a little crazy. But I guess this
Speaker 2: is the cheapest you'll get it, you know. Yeah, right,
Speaker 2: So yeah, I'm looking forward to talking to you again
Speaker 2: next week at the same time, the same place.
Speaker 1: And you know what, I'm going to be in New
Speaker 1: York next week.
Speaker 2: Oh a different places. Cool.
Speaker 1: I will see you live and live and in living color.
Speaker 2: Right on, all right, I'll introduce you to Bill Melvin
Speaker 2: while you're here, as well wonderful.
Speaker 1: I'm Matt Miller, I'm Hannah Elliott, and this is Bloomberg