1 00:00:07,800 --> 00:00:11,040 Speaker 1: Hi one to welcome Bloomberg Intelligence Talking Transports Podcast. I'm 2 00:00:11,039 --> 00:00:14,120 Speaker 1: your host, Lee klas Gaussenior Freight transportation Logistics Analysts at 3 00:00:14,120 --> 00:00:17,200 Speaker 1: Bloomberg Intelligence, Bloomberg's in house research arm of almost five 4 00:00:17,239 --> 00:00:20,600 Speaker 1: hundred analysts and strategists. Before diving in a little public 5 00:00:20,640 --> 00:00:23,480 Speaker 1: service announcement, your support is instrumental to keep bringing great 6 00:00:23,480 --> 00:00:25,640 Speaker 1: guests onto the podcast like the one we have today. 7 00:00:26,040 --> 00:00:28,560 Speaker 1: If you haven't already, please do take a moment to follow, 8 00:00:28,640 --> 00:00:32,720 Speaker 1: rate and share the Talking Transports Podcast. We appreciate your support. 9 00:00:33,120 --> 00:00:37,159 Speaker 1: I'm very excited to have Laura Parota president of American 10 00:00:37,200 --> 00:00:41,520 Speaker 1: Truck Dealers, a division of the National Automobile Dealers Association. 11 00:00:42,200 --> 00:00:45,720 Speaker 1: ADT represents more than eighteen hundred franchise medium and heavy 12 00:00:45,800 --> 00:00:49,680 Speaker 1: duty truck dealers, holding nearly three thousand separate franchises, domestic 13 00:00:49,760 --> 00:00:53,680 Speaker 1: and import. Previously, Laura served as President and CEO of 14 00:00:53,720 --> 00:00:59,040 Speaker 1: the American Highway Users Alliance, a nonprofit advocacy organization. She's 15 00:00:59,080 --> 00:01:01,840 Speaker 1: worked in the association world for the past twenty years. 16 00:01:02,200 --> 00:01:04,800 Speaker 1: Prior to running the Highway Users, Laura was the Senior 17 00:01:04,840 --> 00:01:09,960 Speaker 1: Director of Legislative Affairs for the National Automobile Dealers Association There, 18 00:01:10,040 --> 00:01:15,000 Speaker 1: she handled financial services, transportation, truck and safety issues. Laura 19 00:01:15,040 --> 00:01:18,800 Speaker 1: received her BA in political science from Salisbury State University 20 00:01:18,800 --> 00:01:22,399 Speaker 1: of Maryland, so Go Seagulls. Her career began in two 21 00:01:22,440 --> 00:01:26,080 Speaker 1: thousand and one in d C, where she relocated to 22 00:01:26,120 --> 00:01:30,520 Speaker 1: Capitol Hill to work for Congressman Whiton of New York. 23 00:01:31,040 --> 00:01:33,479 Speaker 1: Welcome to the Talking Transport Podcast. 24 00:01:33,080 --> 00:01:35,440 Speaker 2: Laura, Thanks Lee for having me. 25 00:01:36,080 --> 00:01:38,840 Speaker 1: And I also see in your bio you're from Elmira, 26 00:01:38,959 --> 00:01:39,399 Speaker 1: New York. 27 00:01:40,040 --> 00:01:41,040 Speaker 2: Yes, I am yea. 28 00:01:41,720 --> 00:01:44,360 Speaker 1: I still love passing Elmira on my way to Ethica College. 29 00:01:44,400 --> 00:01:46,720 Speaker 1: When I was going to school there, I always knew 30 00:01:46,760 --> 00:01:48,600 Speaker 1: that that the school was close to three and a 31 00:01:48,600 --> 00:01:53,240 Speaker 1: half an hour drive was almost behind me. So remember 32 00:01:53,280 --> 00:01:54,520 Speaker 1: that town very well. 33 00:01:54,880 --> 00:01:57,200 Speaker 2: That you do. My husband went to Cornell and Epica. 34 00:01:57,760 --> 00:01:59,520 Speaker 1: I loved it so much. I was there five years. 35 00:02:00,160 --> 00:02:02,880 Speaker 1: So why don't you tell us a little background about 36 00:02:02,920 --> 00:02:04,720 Speaker 1: the American Truck Dealers Association. 37 00:02:06,200 --> 00:02:06,680 Speaker 3: What is it? 38 00:02:06,800 --> 00:02:08,840 Speaker 1: What are you? Who are your members? What's your mission? 39 00:02:08,880 --> 00:02:10,080 Speaker 1: What do you guys do there? 40 00:02:10,280 --> 00:02:14,400 Speaker 3: Thanks Ley, So we've been around since nineteen seventy. The 41 00:02:14,440 --> 00:02:17,160 Speaker 3: American Truck Dealers is a division of the National Automobile 42 00:02:17,200 --> 00:02:21,880 Speaker 3: Dealers Association and We represent the medium and heavy duty 43 00:02:21,880 --> 00:02:26,760 Speaker 3: truck dealers, so Class four through eight all brands franchise 44 00:02:26,840 --> 00:02:30,000 Speaker 3: new truck dealers. And we really have three focuses for 45 00:02:30,160 --> 00:02:33,400 Speaker 3: our members besides just generally serving as the voice of 46 00:02:33,440 --> 00:02:36,839 Speaker 3: the truck dealer. Number One, it's advocacy, you know, whether 47 00:02:36,880 --> 00:02:39,520 Speaker 3: it's in Washington, d C. Or working with the federal 48 00:02:39,600 --> 00:02:42,840 Speaker 3: agencies that are regulating the truck dealers and the truck market. 49 00:02:43,960 --> 00:02:45,519 Speaker 2: Two is education. 50 00:02:46,120 --> 00:02:50,079 Speaker 3: We have a really robust educational program offerings for our 51 00:02:50,080 --> 00:02:55,120 Speaker 3: members from our ATD academy to our twenty group efforts, 52 00:02:55,280 --> 00:02:59,959 Speaker 3: consulting and webinars, and just general training on various topics 53 00:03:00,120 --> 00:03:04,639 Speaker 3: of a focus at the dealerships. And then finally, industry relations, 54 00:03:05,000 --> 00:03:09,000 Speaker 3: you know, working with our OEMs, with the suppliers and 55 00:03:09,040 --> 00:03:11,720 Speaker 3: with the trucking industry to raise the voice of the 56 00:03:11,720 --> 00:03:14,520 Speaker 3: truck dealers and make sure our concerns and interests are 57 00:03:14,560 --> 00:03:17,519 Speaker 3: being heard and that we can work together on common 58 00:03:17,680 --> 00:03:19,280 Speaker 3: common issues facing the industry. 59 00:03:19,800 --> 00:03:21,280 Speaker 1: Yeah, I was really excited to have you on the 60 00:03:21,280 --> 00:03:23,919 Speaker 1: podcast because there's a lot of stuff going on within 61 00:03:23,960 --> 00:03:27,960 Speaker 1: the dealer network and the OEM side. I don't cover 62 00:03:28,080 --> 00:03:32,040 Speaker 1: either of those. Christilo, our analysts here a Bloomberg Intelligence 63 00:03:32,040 --> 00:03:34,560 Speaker 1: covers the OEMs and I get to learn a lot 64 00:03:34,600 --> 00:03:39,400 Speaker 1: from him. You know, I guess my question is for you, 65 00:03:39,400 --> 00:03:41,480 Speaker 1: you know, can you just just provide us a quick 66 00:03:41,600 --> 00:03:45,000 Speaker 1: update on the state of the commercial truck market. You know, what, 67 00:03:45,000 --> 00:03:48,600 Speaker 1: what are your members telling you about, you know, demand, inventory, 68 00:03:48,720 --> 00:03:49,480 Speaker 1: that sort of stuff. 69 00:03:49,760 --> 00:03:54,640 Speaker 3: Great question, Lee, So right now I'm hearing that everyone's cautious. 70 00:03:55,080 --> 00:03:57,880 Speaker 3: I think the biggest unknown factor on the truck market 71 00:03:57,920 --> 00:04:00,680 Speaker 3: right now is the election and how that might change 72 00:04:00,680 --> 00:04:04,800 Speaker 3: their regulatory front. And I think it really also depends 73 00:04:04,880 --> 00:04:08,600 Speaker 3: on where you are in the country. In California, because 74 00:04:08,680 --> 00:04:11,680 Speaker 3: the truck regulations that have come into effect this year, 75 00:04:12,600 --> 00:04:15,320 Speaker 3: I'm hearing there's really a freezep of the market where 76 00:04:15,360 --> 00:04:19,320 Speaker 3: folks aren't making the investment in California and buying new trucks, 77 00:04:19,400 --> 00:04:22,680 Speaker 3: so they're going to be holding onto their equipment. And 78 00:04:22,720 --> 00:04:26,719 Speaker 3: then also I hear we're still at over capacity, so 79 00:04:27,080 --> 00:04:28,760 Speaker 3: there isn't you know, there's. 80 00:04:28,600 --> 00:04:29,919 Speaker 2: Just a lot of caution people. 81 00:04:30,000 --> 00:04:33,720 Speaker 3: People aren't buying as much, you know, they're they're they're 82 00:04:33,760 --> 00:04:35,600 Speaker 3: just waiting and watching. 83 00:04:36,360 --> 00:04:38,200 Speaker 1: And you know, there was a lot in the news 84 00:04:38,279 --> 00:04:41,760 Speaker 1: about a cyber attack that impacted a lot of auto dealers. 85 00:04:42,040 --> 00:04:44,040 Speaker 1: Were the truck dealers impacted by that as. 86 00:04:43,960 --> 00:04:47,760 Speaker 3: Well, Yes, they were, a very high number of our 87 00:04:47,800 --> 00:04:51,280 Speaker 3: truck dealers use CDK, So it has been a very 88 00:04:51,400 --> 00:04:53,040 Speaker 3: challenging about. 89 00:04:52,760 --> 00:04:56,080 Speaker 1: A week or so, right, I guess is there a 90 00:04:56,160 --> 00:04:57,600 Speaker 1: light at the end of the tunnel? I guess dealers 91 00:04:57,600 --> 00:04:59,880 Speaker 1: are still getting done. They're just getting done slower and 92 00:05:00,160 --> 00:05:02,640 Speaker 1: and on paper versus electronically. 93 00:05:03,279 --> 00:05:08,000 Speaker 3: Yes, they've had a renew old processes before all the 94 00:05:08,040 --> 00:05:10,800 Speaker 3: technology we have today, So it's been a lot of paper, 95 00:05:12,080 --> 00:05:16,239 Speaker 3: you know, trying to record everything. I hear from folks 96 00:05:16,279 --> 00:05:19,720 Speaker 3: who have been through similar challenges with other cyber attacks 97 00:05:20,120 --> 00:05:23,480 Speaker 3: that the biggest concern actually will be coming back online 98 00:05:24,200 --> 00:05:27,719 Speaker 3: and making sure that folks inventory is correct because obviously 99 00:05:27,800 --> 00:05:31,760 Speaker 3: they're still selling parts and having transactions go on throughout 100 00:05:31,760 --> 00:05:35,720 Speaker 3: this time. They're going to have to figure out and reconcile, 101 00:05:36,240 --> 00:05:38,520 Speaker 3: you know, the end of the month, they're going to 102 00:05:38,600 --> 00:05:41,000 Speaker 3: have to go through all their parts and figure out 103 00:05:41,040 --> 00:05:43,520 Speaker 3: what they've sold and where they are and what they 104 00:05:43,520 --> 00:05:46,719 Speaker 3: have in their inventory. And it's just going to be 105 00:05:46,920 --> 00:05:51,960 Speaker 3: very labor us labor intensive, time consuming. You know, it's 106 00:05:52,200 --> 00:05:54,839 Speaker 3: no one's everyone wants to get back online, but no 107 00:05:54,839 --> 00:05:58,040 Speaker 3: one's looking forward to the hours they're going to go 108 00:05:58,120 --> 00:06:00,640 Speaker 3: in to get things right right. 109 00:06:00,720 --> 00:06:04,560 Speaker 1: So, you know, I cover trucking companies and you know, 110 00:06:04,640 --> 00:06:07,599 Speaker 1: part of their earning streams or gains from used equipment, 111 00:06:07,720 --> 00:06:11,400 Speaker 1: and you know that's been relatively depressed. How would you 112 00:06:11,440 --> 00:06:15,560 Speaker 1: guys characterize the used market? Are you seeing any improvement 113 00:06:15,600 --> 00:06:19,880 Speaker 1: in pricing or demand? You know what, what's what are 114 00:06:19,920 --> 00:06:22,680 Speaker 1: your members telling you? 115 00:06:22,760 --> 00:06:25,599 Speaker 3: Use truck sales you know that the prices have come 116 00:06:25,680 --> 00:06:27,760 Speaker 3: back kind of more in line with where they were 117 00:06:27,880 --> 00:06:31,560 Speaker 3: pre pandemic. I was just out of a dealership last 118 00:06:31,600 --> 00:06:36,200 Speaker 3: week in Minnesota and I was talking there used truck salesperson, 119 00:06:36,839 --> 00:06:40,040 Speaker 3: and you know, he was feeling good about where things 120 00:06:40,080 --> 00:06:43,640 Speaker 3: are right now. He just said, you know, they're you know, 121 00:06:43,680 --> 00:06:46,520 Speaker 3: they're not picking up too many used trucks that they're 122 00:06:46,520 --> 00:06:49,520 Speaker 3: going to get into trouble. They're being cautious too. I 123 00:06:49,560 --> 00:06:51,520 Speaker 3: just think the biggest thing I see everywhere I look 124 00:06:51,680 --> 00:06:54,400 Speaker 3: is caution. You know, everyone's just kind of holding their 125 00:06:54,400 --> 00:06:56,880 Speaker 3: breath into the election to see where the market's going 126 00:06:56,920 --> 00:06:59,520 Speaker 3: to head, how the markets are going to react, and 127 00:06:59,560 --> 00:07:01,760 Speaker 3: then know who's going to be running the show in 128 00:07:01,800 --> 00:07:02,440 Speaker 3: the White House. 129 00:07:02,600 --> 00:07:04,600 Speaker 2: And setting the policies right. 130 00:07:04,880 --> 00:07:08,240 Speaker 1: So I guess I mean, is it possible that the 131 00:07:08,240 --> 00:07:11,520 Speaker 1: EPA mandates for twenty twenty seven could get rolled back 132 00:07:11,880 --> 00:07:13,560 Speaker 1: if somebody else was in the White House. 133 00:07:14,040 --> 00:07:17,160 Speaker 3: Yes, we believe they could be very much. So I 134 00:07:17,200 --> 00:07:20,880 Speaker 3: think if there is a Trump administration, they are going 135 00:07:20,920 --> 00:07:23,240 Speaker 3: to be taking a serious look at all the regulations 136 00:07:23,240 --> 00:07:25,320 Speaker 3: that have come out of the administration over the past 137 00:07:25,320 --> 00:07:28,520 Speaker 3: four years. And I do think from everything we hear 138 00:07:29,320 --> 00:07:33,680 Speaker 3: from what Trump says climate change regulations, you know, the 139 00:07:34,280 --> 00:07:37,000 Speaker 3: environmental focused regulations will be at the top. 140 00:07:36,800 --> 00:07:37,280 Speaker 2: Of the heap. 141 00:07:38,120 --> 00:07:41,080 Speaker 3: And you know, we hear a lot more on probably 142 00:07:41,160 --> 00:07:44,840 Speaker 3: the auto side of Trump talking about the electric vehicle mandate. 143 00:07:45,360 --> 00:07:47,720 Speaker 3: But I do know from Trump's last time in the 144 00:07:47,720 --> 00:07:50,880 Speaker 3: White House the trucking industry was a priority for him. 145 00:07:51,360 --> 00:07:54,560 Speaker 3: He spent a lot of time working with American trucking associations. 146 00:07:55,200 --> 00:07:59,400 Speaker 3: And I'm sure that this will be ripe for whether 147 00:07:59,520 --> 00:08:02,240 Speaker 3: you know it to go through a new regulatory process, 148 00:08:02,400 --> 00:08:06,720 Speaker 3: am whatever paths you might take. I think this is 149 00:08:06,720 --> 00:08:09,720 Speaker 3: going to be a priority if that administration comes into play. 150 00:08:10,160 --> 00:08:12,440 Speaker 1: So from an outsider looking in, you know, when I'm 151 00:08:12,480 --> 00:08:15,680 Speaker 1: looking at the EPA twenty twenty seven mandates. I would 152 00:08:15,720 --> 00:08:17,960 Speaker 1: imagine it's kind of could be a good thing for 153 00:08:18,040 --> 00:08:20,920 Speaker 1: the dealer network A because it'll make the price per 154 00:08:21,000 --> 00:08:23,640 Speaker 1: unit go up significantly and be it could create a 155 00:08:23,640 --> 00:08:26,960 Speaker 1: lot of pre buying opportunities and might push up the 156 00:08:27,000 --> 00:08:30,200 Speaker 1: prices of used equipment. Is that the right way of 157 00:08:30,240 --> 00:08:34,360 Speaker 1: thinking it? Or are you guys in the mindset well, 158 00:08:34,760 --> 00:08:36,440 Speaker 1: any new regulations bad regulation. 159 00:08:36,960 --> 00:08:40,319 Speaker 3: It's not about any new regulations bad regulation. It's about 160 00:08:41,520 --> 00:08:44,160 Speaker 3: this is so complex. There's a point where you know, 161 00:08:44,200 --> 00:08:46,600 Speaker 3: trucks are getting more and more expensive that folks can't 162 00:08:46,640 --> 00:08:49,280 Speaker 3: afford them. So there are a lot of challenges with 163 00:08:49,840 --> 00:08:52,440 Speaker 3: I just have to say, there's so many regulations coming 164 00:08:52,480 --> 00:08:56,040 Speaker 3: at once. First, let's look at the federal perspective. In 165 00:08:56,080 --> 00:08:59,080 Speaker 3: twenty twenty seven, we have the Phase three greenhouse gas 166 00:08:59,120 --> 00:09:03,080 Speaker 3: regulations to set really high targets for electrification of the 167 00:09:03,120 --> 00:09:07,000 Speaker 3: truck market, and in a really short period of time. 168 00:09:07,480 --> 00:09:11,120 Speaker 3: The technology isn't really there yet. We can't just flip 169 00:09:11,120 --> 00:09:14,160 Speaker 3: a switch and replace every diesel vehicle with an electric vehicle. 170 00:09:14,760 --> 00:09:18,600 Speaker 3: So we have a major challenge where the government's going 171 00:09:18,640 --> 00:09:21,920 Speaker 3: to mandate what folks buy and the market's not there. 172 00:09:22,360 --> 00:09:24,320 Speaker 3: And on top of that, these trucks cost two to 173 00:09:24,360 --> 00:09:28,240 Speaker 3: three times more, so that is one huge issue. So 174 00:09:28,320 --> 00:09:31,040 Speaker 3: right there, with these targets, we're afraid that the truck 175 00:09:31,080 --> 00:09:34,040 Speaker 3: market's going to go into upheaval. So yes, there could 176 00:09:34,040 --> 00:09:36,440 Speaker 3: be a pre by leading up to it, but what's 177 00:09:36,440 --> 00:09:38,720 Speaker 3: going to happen come twenty twenty seven? And on top 178 00:09:38,760 --> 00:09:42,240 Speaker 3: of that, we have the EPA NOOX rule that ratchets 179 00:09:42,240 --> 00:09:44,800 Speaker 3: down on the last bit of nitrogen oxide coming out 180 00:09:44,800 --> 00:09:48,360 Speaker 3: of these trucks and basically perfects the diesel engine. That's 181 00:09:48,360 --> 00:09:51,520 Speaker 3: going to add about thirty twenty five thousand to the 182 00:09:51,559 --> 00:09:52,960 Speaker 3: cost of each new truck. 183 00:09:53,480 --> 00:09:54,920 Speaker 2: It's how much can the market bear? 184 00:09:55,480 --> 00:09:58,600 Speaker 3: And we're seeing this play out real time in California 185 00:09:58,960 --> 00:10:02,440 Speaker 3: with the CARB regulation that came into effect this year. 186 00:10:02,600 --> 00:10:04,920 Speaker 3: It's causing a freezing of the truck market and that's 187 00:10:04,960 --> 00:10:05,840 Speaker 3: good for no one. 188 00:10:06,400 --> 00:10:09,560 Speaker 1: So I guess which which which of these two regulations 189 00:10:09,640 --> 00:10:12,800 Speaker 1: you think are going to be more disruptive to your 190 00:10:12,920 --> 00:10:17,040 Speaker 1: to the dealer network or the trucking market in general. 191 00:10:17,160 --> 00:10:20,120 Speaker 1: Is it the lowering the NOx of increasing the twenty 192 00:10:20,160 --> 00:10:22,920 Speaker 1: five to thirty or is it just the mandate to 193 00:10:23,600 --> 00:10:26,600 Speaker 1: for the industry to use more evs? 194 00:10:26,640 --> 00:10:31,079 Speaker 3: Definitely the Phase three greenhouse gas mandate on electric vehicles. 195 00:10:31,760 --> 00:10:35,520 Speaker 3: You know, in the EPA regulation they offer different paths 196 00:10:35,960 --> 00:10:39,000 Speaker 3: to hit the targets, you know, trying to offer hybrids 197 00:10:39,160 --> 00:10:44,200 Speaker 3: and hydrogen and you know, various paths to get there. 198 00:10:44,720 --> 00:10:47,680 Speaker 3: But the problem is how string and the targets are. 199 00:10:47,880 --> 00:10:50,360 Speaker 3: It's really a de facto EV mandate. The only way 200 00:10:50,360 --> 00:10:53,880 Speaker 3: they can really be met is through moving to electric vehicles. 201 00:10:55,040 --> 00:10:57,840 Speaker 3: So this is just there are so many reasons that 202 00:10:57,880 --> 00:11:00,199 Speaker 3: this isn't going to work today, and the biggest thing 203 00:11:00,240 --> 00:11:02,160 Speaker 3: is it's just too far, too fast. 204 00:11:03,520 --> 00:11:06,600 Speaker 1: Right, And you mentioned that EV Class eight trucks are 205 00:11:06,600 --> 00:11:09,120 Speaker 1: three to four times more expensive than traditional diesels, is 206 00:11:09,120 --> 00:11:09,480 Speaker 1: that right? 207 00:11:10,520 --> 00:11:12,520 Speaker 2: Two to three times, two to three times. 208 00:11:12,720 --> 00:11:16,480 Speaker 1: Sorry, Yeah, And then not to mention the cost of 209 00:11:16,520 --> 00:11:20,160 Speaker 1: the infrastructure to support those trucks, especially if you're talking 210 00:11:20,160 --> 00:11:23,520 Speaker 1: about over the road trucks that you know have irregular routes. 211 00:11:23,520 --> 00:11:27,480 Speaker 1: It's it's very im gonna imagine next to not not impossible, 212 00:11:27,520 --> 00:11:30,920 Speaker 1: butt its close to impossible to ensure that you can 213 00:11:30,960 --> 00:11:34,080 Speaker 1: you can find a charging station everywhere in the country 214 00:11:34,200 --> 00:11:34,840 Speaker 1: where you are. 215 00:11:35,679 --> 00:11:35,880 Speaker 2: Yeah. 216 00:11:36,120 --> 00:11:39,200 Speaker 3: Absolutely, I'll say we are part of the Clean Freight 217 00:11:39,280 --> 00:11:42,920 Speaker 3: Coalition with you know, about five or six other national 218 00:11:43,040 --> 00:11:49,440 Speaker 3: organization in including the American Trucking Associations. And we just 219 00:11:49,720 --> 00:11:52,560 Speaker 3: commissioned a study by Rollenberger to look at the costs 220 00:11:52,559 --> 00:11:55,760 Speaker 3: of one hundred percent electrification of the truck fleets, right 221 00:11:56,280 --> 00:11:59,440 Speaker 3: and they found a one trillion dollar cost estimate for 222 00:11:59,520 --> 00:12:02,560 Speaker 3: both the physical infrastructure that would need to go in 223 00:12:02,600 --> 00:12:07,120 Speaker 3: for the chargers, but then also an additional you know, 224 00:12:07,160 --> 00:12:11,439 Speaker 3: three hundred and seventy billion dollars in utility upgrades. So 225 00:12:11,600 --> 00:12:14,200 Speaker 3: this is just really mind boggling to wrap your mind 226 00:12:14,240 --> 00:12:16,160 Speaker 3: around how much all of this is going to cost. 227 00:12:16,360 --> 00:12:19,000 Speaker 3: And then the biggest thing is just rushing it so 228 00:12:19,120 --> 00:12:22,320 Speaker 3: much to start in twenty twenty seven. Right now, with 229 00:12:22,880 --> 00:12:25,840 Speaker 3: Class eight electric vehicle sales are at abou zero point 230 00:12:25,960 --> 00:12:30,679 Speaker 3: three percent, and we are expecting under these regulations they 231 00:12:30,720 --> 00:12:35,560 Speaker 3: want by twenty thirty two, twenty five percent of sleeper 232 00:12:35,600 --> 00:12:39,480 Speaker 3: cabs to be electric. So that's really an impossibility to 233 00:12:39,559 --> 00:12:41,800 Speaker 3: ratchet up that fast that quickly. 234 00:12:42,120 --> 00:12:44,199 Speaker 1: Right, and somebody has to pay for it. So if 235 00:12:44,200 --> 00:12:46,960 Speaker 1: you're charging two point fifty two and fifty cents a 236 00:12:47,000 --> 00:12:51,680 Speaker 1: mile for diesel truck, I mean that cost could more 237 00:12:51,720 --> 00:12:54,760 Speaker 1: than double if you were to use an ev to 238 00:12:56,080 --> 00:12:59,360 Speaker 1: make that investment worthwhile. So it'll be interesting to see 239 00:12:59,520 --> 00:13:04,920 Speaker 1: what happen happens. Does your organization have an alternative suggestion 240 00:13:05,120 --> 00:13:06,440 Speaker 1: on how to get cleaner? 241 00:13:07,000 --> 00:13:09,800 Speaker 3: You know, I think that the lowest hanging fruit from 242 00:13:09,880 --> 00:13:13,640 Speaker 3: our perspective is fleet turnover. You know, we see about 243 00:13:13,880 --> 00:13:16,839 Speaker 3: fifty percent of the trucks on the road today are 244 00:13:16,880 --> 00:13:21,040 Speaker 3: pre twenty ten, so they have the you know, old emissions. 245 00:13:21,200 --> 00:13:23,480 Speaker 3: If we were able to get those old vehicles off 246 00:13:23,480 --> 00:13:27,959 Speaker 3: the road and simply get our customers into clean trucks, 247 00:13:28,000 --> 00:13:32,320 Speaker 3: clean new trucks, clean diesel, we would see a massive 248 00:13:32,360 --> 00:13:34,760 Speaker 3: improvement to air quality overnight. 249 00:13:34,440 --> 00:13:36,080 Speaker 2: At a really cost effective way. 250 00:13:36,640 --> 00:13:39,560 Speaker 3: Another thing we're excited about are things like renewable diesel 251 00:13:40,160 --> 00:13:44,280 Speaker 3: and you know biodiesel. That's where you know, renewable and diesel. 252 00:13:44,280 --> 00:13:46,920 Speaker 3: We can put in any engine right now, and any 253 00:13:46,960 --> 00:13:49,800 Speaker 3: diesel engine and from what I understand, it has a 254 00:13:49,840 --> 00:13:56,120 Speaker 3: negative carbon footprint. This is unfortunately governments trying to pick 255 00:13:56,200 --> 00:13:59,680 Speaker 3: winners and losers with technology. From it Tod's perspective, we 256 00:13:59,760 --> 00:14:02,839 Speaker 3: really I think it should be market driven. Everyone wants 257 00:14:02,880 --> 00:14:05,720 Speaker 3: to have more efficient vehicles, everyone wants to have clean air, 258 00:14:06,520 --> 00:14:10,040 Speaker 3: but we should do this looking at all technology avenues 259 00:14:10,320 --> 00:14:12,400 Speaker 3: and not picking winners and losers. 260 00:14:13,160 --> 00:14:15,679 Speaker 1: And is it too early right now from your dealer's 261 00:14:15,679 --> 00:14:18,319 Speaker 1: perspective that pre buy is going on, or the pre 262 00:14:18,400 --> 00:14:22,880 Speaker 1: buy hasn't quite started yet, or our trucking companies kind 263 00:14:22,880 --> 00:14:25,280 Speaker 1: of working with the dealers to put their orders in 264 00:14:25,360 --> 00:14:29,600 Speaker 1: today for maybe trucks to be delivered, you know in 265 00:14:29,640 --> 00:14:31,400 Speaker 1: twenty twenty six or twenty twenty five. 266 00:14:32,720 --> 00:14:35,520 Speaker 3: Yeah, the pre buy hasn't started yet, and I'm hearing 267 00:14:35,920 --> 00:14:40,040 Speaker 3: varying perspectives on whether that's going to happen. I hear 268 00:14:40,080 --> 00:14:42,880 Speaker 3: from some experts like ACT Research, that we're going to 269 00:14:42,920 --> 00:14:46,640 Speaker 3: see the mother of all pre buys come, you know, 270 00:14:47,360 --> 00:14:50,160 Speaker 3: third quarter around twenty twenty five sometime. 271 00:14:51,800 --> 00:14:53,800 Speaker 2: I was always kind of leaning that way. 272 00:14:53,840 --> 00:14:56,280 Speaker 3: I mean, we saw what happened with the pre buy 273 00:14:57,360 --> 00:15:00,840 Speaker 3: pre twenty ten, you know, emission right, and we can 274 00:15:00,920 --> 00:15:02,080 Speaker 3: see that massive pre buy. 275 00:15:02,160 --> 00:15:02,200 Speaker 1: It. 276 00:15:02,320 --> 00:15:05,200 Speaker 3: That's where my head has always been, just looking at history, 277 00:15:05,240 --> 00:15:07,800 Speaker 3: that that's where we were going to go. But then 278 00:15:07,800 --> 00:15:11,040 Speaker 3: I have some folks that say, you know, we're over capacity, 279 00:15:12,360 --> 00:15:15,760 Speaker 3: you know, the truck market isn't strong enough, and there's 280 00:15:15,840 --> 00:15:18,800 Speaker 3: just so much caution. I mean, and I do really 281 00:15:18,840 --> 00:15:21,600 Speaker 3: think that we should look at California as a bell weather, 282 00:15:22,080 --> 00:15:24,040 Speaker 3: as a canary in the coal mine for what's about 283 00:15:24,080 --> 00:15:26,000 Speaker 3: to happen to the entire country. 284 00:15:26,760 --> 00:15:27,760 Speaker 2: So just listen to this. 285 00:15:27,960 --> 00:15:31,640 Speaker 3: For our dealers in California, they have the three regulations 286 00:15:31,680 --> 00:15:34,760 Speaker 3: that came into effect this year. Advanced Clean Trucks Rule 287 00:15:35,000 --> 00:15:39,160 Speaker 3: on the manufacturers to to hit certain levels of electrification 288 00:15:40,000 --> 00:15:41,640 Speaker 3: each year, ratcheting enough stronger. 289 00:15:41,880 --> 00:15:42,080 Speaker 1: Right. 290 00:15:42,800 --> 00:15:46,360 Speaker 3: We have the Carbon Knox Rule, which ratchets down, begins 291 00:15:46,360 --> 00:15:50,600 Speaker 3: to ratchet down on the Knox now, just like eventually 292 00:15:50,600 --> 00:15:52,720 Speaker 3: we'll align with the EPA in twenty twenty seven, but 293 00:15:52,760 --> 00:15:55,160 Speaker 3: it's already starting now. And then we have the Advanced 294 00:15:55,200 --> 00:15:58,080 Speaker 3: Clean Fleets Rule. What we're seeing in California from the 295 00:15:58,080 --> 00:16:02,040 Speaker 3: truck dealers is in order for the manufacturers to try 296 00:16:02,080 --> 00:16:05,080 Speaker 3: and start meeting these targets, even with their ev with 297 00:16:05,160 --> 00:16:08,640 Speaker 3: their tax credits they've built up over time, they're having 298 00:16:08,960 --> 00:16:13,880 Speaker 3: to reduce the allocations of diesel product to the truck dealers. 299 00:16:14,080 --> 00:16:16,360 Speaker 3: So they have customers coming in and saying I would 300 00:16:16,360 --> 00:16:19,720 Speaker 3: like to buy X number of diesel trucks, and the 301 00:16:19,840 --> 00:16:22,520 Speaker 3: dealers have to say, I can't sell those to you. 302 00:16:22,520 --> 00:16:26,360 Speaker 3: You have to buy one electric first, or someone has 303 00:16:26,400 --> 00:16:29,280 Speaker 3: to buy one electric first. In some cases it's one 304 00:16:29,320 --> 00:16:33,160 Speaker 3: electric truck to one diesel truck. In other cases it's 305 00:16:33,600 --> 00:16:36,040 Speaker 3: one electric truck to get five diesel trucks. It just 306 00:16:36,040 --> 00:16:39,520 Speaker 3: depends on the manufacture and how their credits have built up. 307 00:16:40,240 --> 00:16:43,160 Speaker 3: But what we're seeing is no one's buying. I've talked 308 00:16:43,160 --> 00:16:45,960 Speaker 3: to three California truck dealers just in the last couple 309 00:16:46,000 --> 00:16:48,520 Speaker 3: of weeks. They have said that they have sold zero 310 00:16:49,600 --> 00:16:54,360 Speaker 3: twenty twenty four trucks. They've only sold their legacy product 311 00:16:54,400 --> 00:16:55,880 Speaker 3: from twenty twenty three that they were. 312 00:16:55,800 --> 00:16:59,360 Speaker 2: Allowed to sell. So this is not good. This is 313 00:16:59,400 --> 00:17:00,240 Speaker 2: not good at all. 314 00:17:00,600 --> 00:17:02,640 Speaker 3: And this we're seeing going to see the exact same 315 00:17:02,680 --> 00:17:05,760 Speaker 3: regulations basically minus the Advanced Clean Fleets rule. So no 316 00:17:05,880 --> 00:17:09,080 Speaker 3: mandate to buy coming in twenty twenty seven to the 317 00:17:09,200 --> 00:17:09,720 Speaker 3: entire nation. 318 00:17:10,520 --> 00:17:13,760 Speaker 1: That's it. That's it, that's it. That's pretty incredible. I 319 00:17:13,760 --> 00:17:17,120 Speaker 1: guess that's why a lot of trucking companies don't love 320 00:17:17,200 --> 00:17:18,640 Speaker 1: doing business in California. 321 00:17:19,280 --> 00:17:22,360 Speaker 3: Yeah, yeah, well, and we have there are ten carb 322 00:17:22,480 --> 00:17:26,480 Speaker 3: states in total, So next year, off my memory, I 323 00:17:26,560 --> 00:17:30,800 Speaker 3: believe it's Oregon, Washington, New York, New Jersey are going 324 00:17:30,840 --> 00:17:33,720 Speaker 3: to be adopting these carb regulations. So we're going to 325 00:17:33,720 --> 00:17:36,760 Speaker 3: see you start to see constrictions in those markets as well. 326 00:17:37,600 --> 00:17:41,840 Speaker 3: And they don't come in at the twenty twenty four targets. 327 00:17:42,240 --> 00:17:44,959 Speaker 3: They come in at the twenty twenty five targets, so 328 00:17:45,000 --> 00:17:48,040 Speaker 3: they have to meet more stringent targets for electrification. 329 00:17:48,920 --> 00:17:52,040 Speaker 2: And so this is this is going to be a 330 00:17:52,080 --> 00:17:52,680 Speaker 2: real problem. 331 00:17:53,520 --> 00:17:57,760 Speaker 1: So do these California dealers just have a bunch of 332 00:17:58,520 --> 00:18:01,640 Speaker 1: you know, the twenty twenty four trucks on their lots 333 00:18:01,680 --> 00:18:06,960 Speaker 1: just sitting there, so like bloated inventories, it's kind of 334 00:18:06,960 --> 00:18:07,800 Speaker 1: all over the map. 335 00:18:08,720 --> 00:18:12,280 Speaker 3: Some of them have bloated legacy inventories still from twenty 336 00:18:12,320 --> 00:18:18,320 Speaker 3: twenty three because they can't sell the diesel product until 337 00:18:18,320 --> 00:18:20,919 Speaker 3: they sell the electric and there's been no demand for 338 00:18:20,960 --> 00:18:24,439 Speaker 3: the electric if you don't have the market. I mean, 339 00:18:24,480 --> 00:18:27,200 Speaker 3: when if someone comes into a lot that's just happened 340 00:18:27,240 --> 00:18:29,040 Speaker 3: to a truck together. The other day, someone came out 341 00:18:29,080 --> 00:18:31,600 Speaker 3: on the lot. Customer wanted to buy a diesel dump 342 00:18:31,640 --> 00:18:34,480 Speaker 3: truck that was sitting right there on the lot, and 343 00:18:34,560 --> 00:18:36,840 Speaker 3: the dealer had to say, I can't sell that to 344 00:18:36,880 --> 00:18:38,760 Speaker 3: you because you have to buy an electric first. 345 00:18:39,359 --> 00:18:42,639 Speaker 1: This is a dumb question. Do they make electric electric 346 00:18:43,040 --> 00:18:44,160 Speaker 1: vocational trucks? 347 00:18:45,760 --> 00:18:48,359 Speaker 2: No, not really, I mean a little bit. No, I 348 00:18:48,400 --> 00:18:49,040 Speaker 2: shouldn't say that. 349 00:18:49,160 --> 00:18:53,119 Speaker 3: I did write in a Mac electric dump truck, so 350 00:18:53,240 --> 00:18:55,480 Speaker 3: I would just say it's emerging. But just to put 351 00:18:55,480 --> 00:18:59,400 Speaker 3: it in perspective, we are seeing product blackouts in California. 352 00:19:00,280 --> 00:19:02,520 Speaker 3: Just say, hypothetically, I'm not saying this was the case, 353 00:19:02,560 --> 00:19:07,560 Speaker 3: but hypothetically, if Mac maybe had twenty models in twenty 354 00:19:07,600 --> 00:19:10,960 Speaker 3: twenty three of diesel products they could sell, then after 355 00:19:11,000 --> 00:19:15,000 Speaker 3: the regulations, maybe they have ten products that they can 356 00:19:15,080 --> 00:19:18,800 Speaker 3: sell because of they don't have a comparable electric vehicle 357 00:19:19,520 --> 00:19:21,640 Speaker 3: or you know, just. 358 00:19:23,440 --> 00:19:24,600 Speaker 2: There just aren't Apple. 359 00:19:24,640 --> 00:19:28,200 Speaker 3: It's like apples to Orange's comparison of electric product versus 360 00:19:28,680 --> 00:19:32,840 Speaker 3: diesel product, it's just not it's. 361 00:19:32,720 --> 00:19:33,280 Speaker 2: Not the same. 362 00:19:33,560 --> 00:19:36,679 Speaker 3: And we don't have electric cement mixers to my knowledge, 363 00:19:36,960 --> 00:19:39,520 Speaker 3: although I did hear here of an electric bucket truck 364 00:19:39,560 --> 00:19:42,520 Speaker 3: the other day for utility that broke down on the 365 00:19:42,560 --> 00:19:45,560 Speaker 3: way back from doing a job during a power outage 366 00:19:45,840 --> 00:19:47,920 Speaker 3: and didn't break down, it ran out of power. 367 00:19:48,000 --> 00:19:49,360 Speaker 2: Sorry, and it had to be two. 368 00:19:50,040 --> 00:19:54,040 Speaker 3: So it's just it's extremely challenging how much we're a 369 00:19:54,119 --> 00:19:56,600 Speaker 3: rush and the technology is getting there, but it's just 370 00:19:57,200 --> 00:19:59,760 Speaker 3: not there yet. I mean in class eight is just 371 00:20:00,000 --> 00:20:02,720 Speaker 3: out of the question. I think the manufacturers are looking 372 00:20:02,720 --> 00:20:03,840 Speaker 3: more and more at hydrogen. 373 00:20:05,960 --> 00:20:10,639 Speaker 1: So is inventory is an issue nationally in terms of 374 00:20:10,359 --> 00:20:13,520 Speaker 1: our inventory is a little bloated right now? 375 00:20:14,160 --> 00:20:17,520 Speaker 3: Yes, I would say it's it's a little bloated. Although 376 00:20:17,600 --> 00:20:20,439 Speaker 3: I haven't heard anyone feeling overwhelmed. You know, it's not 377 00:20:20,560 --> 00:20:24,240 Speaker 3: been become a problem yet. I think they're more worried 378 00:20:24,240 --> 00:20:30,560 Speaker 3: about demand and just overall freight. You know. Then I 379 00:20:30,560 --> 00:20:34,080 Speaker 3: haven't heard oh my gosh, I'm I'm underwater or anything 380 00:20:34,119 --> 00:20:37,919 Speaker 3: like that with inventory, although they're just watching it and anxious, 381 00:20:38,359 --> 00:20:38,840 Speaker 3: right it's. 382 00:20:38,720 --> 00:20:41,080 Speaker 1: Just forcing dealers maybe be a little more aggressive on 383 00:20:41,119 --> 00:20:42,960 Speaker 1: the pricing side. 384 00:20:43,600 --> 00:20:45,119 Speaker 2: Yeah, I think so. 385 00:20:45,640 --> 00:20:51,200 Speaker 3: And you know it's still it's very competitive still right now. 386 00:20:52,400 --> 00:20:57,320 Speaker 3: It's you know what, everyone is just watching it. I 387 00:20:57,400 --> 00:21:00,639 Speaker 3: just it's this caution. I can't explain this over caution. 388 00:21:00,760 --> 00:21:02,520 Speaker 3: That's what I feel whenever I'm talking to anyone about 389 00:21:02,560 --> 00:21:05,760 Speaker 3: the truck market. It's just and I swear everything's just 390 00:21:06,720 --> 00:21:10,800 Speaker 3: waiting on the election, just this anxious waiting of what's 391 00:21:10,840 --> 00:21:11,200 Speaker 3: to come. 392 00:21:13,119 --> 00:21:16,000 Speaker 1: So I guess, going back to your role as president 393 00:21:16,480 --> 00:21:20,440 Speaker 1: of add, what do you spend most of your time doing. 394 00:21:20,560 --> 00:21:23,480 Speaker 1: Is it like spending time in the halls of Capitol 395 00:21:23,520 --> 00:21:25,800 Speaker 1: Hill and lobbying and that sort of stuff. 396 00:21:26,840 --> 00:21:27,720 Speaker 2: That's a great question. 397 00:21:27,840 --> 00:21:27,959 Speaker 1: Lee. 398 00:21:29,440 --> 00:21:30,560 Speaker 2: Every day is different. 399 00:21:30,880 --> 00:21:35,920 Speaker 3: Absolutely, a lot of my time is spent educating our 400 00:21:35,960 --> 00:21:39,600 Speaker 3: members on these regulations because there's such a learning curve, 401 00:21:40,480 --> 00:21:44,359 Speaker 3: you know, getting them the information and analysis that's really 402 00:21:44,840 --> 00:21:48,760 Speaker 3: simple and easy to digest so they can be armed 403 00:21:48,800 --> 00:21:52,760 Speaker 3: to educate their decision makers, whether it's in the capital 404 00:21:52,800 --> 00:21:57,200 Speaker 3: of Washington or back home in the state. So these 405 00:21:57,320 --> 00:21:59,879 Speaker 3: regulatory issues are taking up a lot of time and energy. 406 00:22:01,520 --> 00:22:04,760 Speaker 3: Then you know, going out and visiting the dealers, making 407 00:22:04,800 --> 00:22:08,680 Speaker 3: sure that we're there for them right now during these times, 408 00:22:09,280 --> 00:22:13,439 Speaker 3: and then also just promoting our various activities, you know, 409 00:22:13,480 --> 00:22:16,439 Speaker 3: trying to grow our education side of things, you know, 410 00:22:16,480 --> 00:22:20,640 Speaker 3: through our ATD Academy. And we just had an at 411 00:22:20,760 --> 00:22:23,640 Speaker 3: D Legislative fly in last week that I. 412 00:22:23,640 --> 00:22:25,320 Speaker 2: Was preparing for for a long time. 413 00:22:25,400 --> 00:22:28,879 Speaker 3: So we had we had eighty eight attendees from across 414 00:22:28,920 --> 00:22:32,200 Speaker 3: the country come to Washington, d C. And we had 415 00:22:32,560 --> 00:22:35,840 Speaker 3: ninety five meetings on Capitol Hill. So that's that's been 416 00:22:35,880 --> 00:22:37,200 Speaker 3: a lot of my focus for a while. 417 00:22:38,480 --> 00:22:42,280 Speaker 1: And you know, when you're talking about the impact of 418 00:22:42,320 --> 00:22:48,879 Speaker 1: these regulations with politicians on Capitol Hill, are they empathetic 419 00:22:48,960 --> 00:22:51,239 Speaker 1: to what you guys are going through or are they 420 00:22:51,400 --> 00:22:53,760 Speaker 1: just you know, you're just dealing with a lot of 421 00:22:53,800 --> 00:22:56,520 Speaker 1: this is what we have to do because the environment. 422 00:22:57,640 --> 00:22:59,399 Speaker 1: I don't know what the pushback would be. 423 00:23:00,760 --> 00:23:02,119 Speaker 2: I would say it's a mixed bag. 424 00:23:02,640 --> 00:23:09,560 Speaker 3: You know, Republicans are extremely sympathetic and understand the ramifications 425 00:23:09,560 --> 00:23:12,840 Speaker 3: and ripple effects to things like inflation and to the 426 00:23:12,960 --> 00:23:16,920 Speaker 3: end consumer and how this is all going to play out. 427 00:23:17,600 --> 00:23:19,479 Speaker 2: Writer just did a really good study. 428 00:23:19,480 --> 00:23:23,159 Speaker 3: You should consider having Writer on for a conversation on 429 00:23:23,240 --> 00:23:27,080 Speaker 3: the impacts of these regulations. They found that there's potentially 430 00:23:27,720 --> 00:23:31,119 Speaker 3: a point five to one percent increase to inflation that 431 00:23:31,200 --> 00:23:35,359 Speaker 3: we're going to feel from these California and EPA regulations. 432 00:23:35,400 --> 00:23:39,840 Speaker 3: I mean, that's massive. So the Republicans are very sympathetic. 433 00:23:40,000 --> 00:23:44,280 Speaker 3: I would say the moderate Democrats are shocked because they 434 00:23:44,280 --> 00:23:47,000 Speaker 3: have no idea that this was coming and what's unfolding 435 00:23:47,040 --> 00:23:51,359 Speaker 3: in California. They are sympathetic, but I do feel there 436 00:23:51,960 --> 00:23:55,639 Speaker 3: don't know how to fix it at this point because 437 00:23:55,680 --> 00:23:59,760 Speaker 3: they obviously don't want to buck the Democratic administration or 438 00:24:00,400 --> 00:24:03,960 Speaker 3: waves right before an election. And then I'd say the 439 00:24:04,000 --> 00:24:09,200 Speaker 3: liberal Democrats tell us to pound sand because they think 440 00:24:09,240 --> 00:24:12,280 Speaker 3: gets their mission to do this, and it doesn't matter 441 00:24:12,280 --> 00:24:14,320 Speaker 3: what happens to the truck market, you know. 442 00:24:14,400 --> 00:24:16,640 Speaker 2: And that's the reality, although. 443 00:24:16,359 --> 00:24:20,200 Speaker 3: Of course they're sympathetic to their constituents compared to probably 444 00:24:20,280 --> 00:24:21,400 Speaker 3: us going in to talk to them. 445 00:24:22,840 --> 00:24:24,399 Speaker 1: Well, it would be good to know. We did have 446 00:24:24,520 --> 00:24:27,560 Speaker 1: Robert Sanchez from a writer on the podcast a couple 447 00:24:27,600 --> 00:24:30,760 Speaker 1: of weeks ago. He's the chairman, president, CEO of Writer. 448 00:24:30,960 --> 00:24:33,840 Speaker 1: So all those listening right now you should go back 449 00:24:33,880 --> 00:24:36,320 Speaker 1: and take a listen to that. One is a great conversation. 450 00:24:37,160 --> 00:24:39,600 Speaker 1: So I guess you know you were telling me about 451 00:24:39,640 --> 00:24:44,000 Speaker 1: you know what the American Drug Dealers Association does. Do 452 00:24:44,040 --> 00:24:47,600 Speaker 1: you guys have like an annual conference or show that 453 00:24:47,680 --> 00:24:49,240 Speaker 1: you put on every year that you bring all the 454 00:24:49,240 --> 00:24:50,000 Speaker 1: dealers together. 455 00:24:50,680 --> 00:24:53,960 Speaker 3: Yeah, we do, lee it's in the winter. We had 456 00:24:54,080 --> 00:24:57,680 Speaker 3: ours in Las Vegas this year in February of twenty four. 457 00:24:58,040 --> 00:25:00,840 Speaker 3: So we're working right now on our our next ATD 458 00:25:00,960 --> 00:25:03,919 Speaker 3: show that will be January twenty third through the twenty 459 00:25:03,960 --> 00:25:08,080 Speaker 3: fifth and New Orleans. We're very excited. It's always a 460 00:25:08,080 --> 00:25:12,280 Speaker 3: great events. We're actually do it tied to the NADA, 461 00:25:12,760 --> 00:25:16,240 Speaker 3: the Auto Dealer's annual show as well. So if you 462 00:25:16,280 --> 00:25:18,639 Speaker 3: go and attend the ATD show, you get two shows 463 00:25:18,640 --> 00:25:20,000 Speaker 3: for the price of one. You get to go to 464 00:25:20,040 --> 00:25:22,960 Speaker 3: all our content and then go across the road and 465 00:25:23,119 --> 00:25:26,440 Speaker 3: go to all the NADA stuff too, So we're really 466 00:25:26,440 --> 00:25:28,040 Speaker 3: excited at New Orleans. It's going to be a lot 467 00:25:28,040 --> 00:25:31,000 Speaker 3: of fun. It's very much about networking, but then also 468 00:25:31,040 --> 00:25:35,280 Speaker 3: about education and workshops in general sessions. So we also 469 00:25:35,359 --> 00:25:39,720 Speaker 3: hold make meetings at our show where we get to 470 00:25:39,720 --> 00:25:42,040 Speaker 3: bring together the dealers with the OEMs to talk about 471 00:25:42,119 --> 00:25:44,919 Speaker 3: issues that are facing them. So we always have a 472 00:25:44,920 --> 00:25:48,040 Speaker 3: great turnout from the OEMs and the suppliers. 473 00:25:47,640 --> 00:25:51,400 Speaker 1: Right to the OEMs show off the latest and greatest products. 474 00:25:51,520 --> 00:25:55,680 Speaker 1: Or is it more more of the industry that supports 475 00:25:55,800 --> 00:25:58,080 Speaker 1: the dealer network that kind of show up. 476 00:25:58,760 --> 00:26:01,880 Speaker 3: Yeah, it's more they that supports the dealer network as 477 00:26:01,920 --> 00:26:04,480 Speaker 3: far as our connection hub where folks can come in 478 00:26:04,480 --> 00:26:06,280 Speaker 3: and check out kind of the latest and greatest. 479 00:26:07,840 --> 00:26:08,199 Speaker 2: Yeah. 480 00:26:08,240 --> 00:26:12,640 Speaker 3: And then from the OEM's involvement, it's more strategic conversations 481 00:26:12,880 --> 00:26:14,840 Speaker 3: on where things are going into the future and how 482 00:26:14,880 --> 00:26:16,040 Speaker 3: we can all work better together. 483 00:26:16,480 --> 00:26:18,359 Speaker 1: I've never been to one of the events before. This 484 00:26:18,440 --> 00:26:22,200 Speaker 1: is actually my first introduction to your organization. And again, 485 00:26:22,280 --> 00:26:24,480 Speaker 1: like I said, I was really excited to have you on. 486 00:26:24,880 --> 00:26:27,399 Speaker 1: Maybe I'll have to check that out in January of 487 00:26:27,880 --> 00:26:28,800 Speaker 1: twenty twenty five. 488 00:26:29,520 --> 00:26:32,200 Speaker 3: We'd love to have you and be really wonderful. It's 489 00:26:32,240 --> 00:26:34,160 Speaker 3: going to be a great show, I know it. 490 00:26:34,920 --> 00:26:39,760 Speaker 1: So besides emission regulations and cyber attacks, what are the 491 00:26:39,800 --> 00:26:41,680 Speaker 1: other challenges facing the industry? 492 00:26:43,080 --> 00:26:46,240 Speaker 3: Well, the other challenges you know, obviously you are always 493 00:26:46,359 --> 00:26:50,159 Speaker 3: working on getting more diesel technicians, and technicians are so 494 00:26:50,280 --> 00:26:53,000 Speaker 3: hard to come by, so that is always a huge 495 00:26:53,080 --> 00:26:58,480 Speaker 3: challenge facing the industry. You know, our dealers create great 496 00:26:58,560 --> 00:27:02,680 Speaker 3: apprenticeship programs and try and get child students right out 497 00:27:02,680 --> 00:27:07,000 Speaker 3: of high school or technical school. And I was just 498 00:27:07,359 --> 00:27:12,880 Speaker 3: out at reaming Kenworth in Minnesota and in the Minneapolis 499 00:27:12,880 --> 00:27:17,800 Speaker 3: area and I met I guess five young apprentice technicians 500 00:27:17,920 --> 00:27:21,919 Speaker 3: that were working in their shop, and it was just 501 00:27:22,119 --> 00:27:24,560 Speaker 3: really wonderful. It's great to see these partnerships that have 502 00:27:24,640 --> 00:27:29,160 Speaker 3: developed with certain you know, career colleges and technical colleges, 503 00:27:29,760 --> 00:27:31,520 Speaker 3: and the dealers will do a lot to try and 504 00:27:31,560 --> 00:27:33,840 Speaker 3: get those folks to started in on the ground, you know, 505 00:27:33,880 --> 00:27:37,480 Speaker 3: whether it's helping with starting their tools, with their tool chests, 506 00:27:37,480 --> 00:27:39,160 Speaker 3: which can be extremely expensive. 507 00:27:39,160 --> 00:27:41,160 Speaker 2: I had no idea until I got into this job. 508 00:27:40,960 --> 00:27:45,040 Speaker 3: How costly those tools can get started to be a technician. 509 00:27:45,080 --> 00:27:47,480 Speaker 3: But of course you start making money, you know, right 510 00:27:47,640 --> 00:27:50,000 Speaker 3: out right out of the gate, which is a lot 511 00:27:50,040 --> 00:27:53,040 Speaker 3: different than going to a four year school and really 512 00:27:53,040 --> 00:27:54,119 Speaker 3: competitive salaries. 513 00:27:54,160 --> 00:27:55,640 Speaker 2: So it's a great opportunity. 514 00:27:56,080 --> 00:27:58,320 Speaker 1: Yeah, two family members that are auto mechanics, and I 515 00:27:58,359 --> 00:28:00,600 Speaker 1: was always head scratching when they would tell me how 516 00:28:00,640 --> 00:28:03,639 Speaker 1: much their tools cost, and they're constantly buying new tools. 517 00:28:05,520 --> 00:28:08,239 Speaker 1: You know, just it's an investment in your career. So 518 00:28:08,400 --> 00:28:10,600 Speaker 1: you know, when you guys are advocating to try to 519 00:28:10,600 --> 00:28:13,119 Speaker 1: get people into the industry, you know, what are you 520 00:28:13,200 --> 00:28:16,399 Speaker 1: highlighting for people to come in. I'm assuming that the 521 00:28:16,400 --> 00:28:19,400 Speaker 1: pay factors. I'm assuming that they make a decent salary. 522 00:28:20,320 --> 00:28:24,440 Speaker 3: Yeah, they can make a really really good living, good benefits. 523 00:28:24,840 --> 00:28:28,400 Speaker 3: You know, a lot of these truck dealerships are multi generational, 524 00:28:28,440 --> 00:28:32,600 Speaker 3: family run businesses. That's something that I never was aware 525 00:28:32,600 --> 00:28:35,399 Speaker 3: of about this in auto, in the auto or truck 526 00:28:35,400 --> 00:28:38,960 Speaker 3: world until I got into this. But these dealerships are 527 00:28:38,960 --> 00:28:43,120 Speaker 3: families and so they're sympathetic to life's challenges. 528 00:28:43,280 --> 00:28:44,680 Speaker 2: They want to advance you. 529 00:28:44,800 --> 00:28:48,560 Speaker 3: They try to look at your career trajectory and get 530 00:28:48,600 --> 00:28:50,360 Speaker 3: you on the path to where you want to go. 531 00:28:51,360 --> 00:28:54,240 Speaker 2: These folks are entrepreneurs. They are you. 532 00:28:54,200 --> 00:28:58,680 Speaker 3: Know, just extremely exciting, engaging people to work for. And 533 00:28:59,800 --> 00:29:03,440 Speaker 3: then you know, you see the people working at the dealerships, 534 00:29:03,440 --> 00:29:06,719 Speaker 3: they become like a family too. They're having barbecues, they're 535 00:29:07,200 --> 00:29:10,680 Speaker 3: you know, supporting each other, they're celebrating when it's you know, 536 00:29:10,720 --> 00:29:13,600 Speaker 3: the twentieth anniversary of the dealership or the fiftieth anniversary 537 00:29:13,640 --> 00:29:17,920 Speaker 3: or the dealership. And they also recognize their long term employees. 538 00:29:18,040 --> 00:29:19,920 Speaker 3: That's what something that always shocks me when I go 539 00:29:19,920 --> 00:29:22,680 Speaker 3: to these dealerships and I see their wall of fame 540 00:29:23,320 --> 00:29:26,000 Speaker 3: for their staff who have been there, you know, thirty 541 00:29:26,120 --> 00:29:30,120 Speaker 3: thirty nine, forty five years. And in this world where 542 00:29:30,160 --> 00:29:32,800 Speaker 3: people stay in jobs such a short period of time, 543 00:29:32,800 --> 00:29:36,240 Speaker 3: at least in the Washington, DC area, it's really wonderful 544 00:29:36,280 --> 00:29:41,479 Speaker 3: to get to see people stay because it's a valuable career, 545 00:29:42,240 --> 00:29:42,520 Speaker 3: right And. 546 00:29:42,680 --> 00:29:44,960 Speaker 1: I'm glad you mentioned that their family businesses. So like 547 00:29:45,040 --> 00:29:47,360 Speaker 1: I just said a couple of questions about you know, 548 00:29:47,400 --> 00:29:50,000 Speaker 1: some of your members if you want to name names, 549 00:29:50,040 --> 00:29:52,040 Speaker 1: name names, but you don't have to. But like, what 550 00:29:52,160 --> 00:29:56,600 Speaker 1: is the largest dealer in your organization? Do they Is 551 00:29:56,600 --> 00:30:00,560 Speaker 1: it like they own twenty deal dealerships, fifty dealerships, three dealerships, 552 00:30:01,400 --> 00:30:03,560 Speaker 1: was considered a large dealer owner. 553 00:30:04,360 --> 00:30:09,680 Speaker 3: Well, there are some really really big dealers. Like there's Rush, 554 00:30:09,720 --> 00:30:12,320 Speaker 3: which is probably one of the biggest dealers. I think 555 00:30:12,360 --> 00:30:15,440 Speaker 3: they have like two hundred and fifty rooftops, but that's 556 00:30:15,480 --> 00:30:18,720 Speaker 3: like dealerships, but then also probably parts and service. I 557 00:30:18,720 --> 00:30:23,040 Speaker 3: don't think they're all sales locations obviously, but that's a 558 00:30:23,120 --> 00:30:27,400 Speaker 3: very big dinner dealer. But they are a multi generational 559 00:30:27,480 --> 00:30:31,360 Speaker 3: family business. Rusty Rush, you know, his father was in 560 00:30:31,400 --> 00:30:33,959 Speaker 3: the business. I'm not sure who exactly started that business 561 00:30:34,000 --> 00:30:36,600 Speaker 3: when that was started, but you know, that's one of 562 00:30:36,640 --> 00:30:41,880 Speaker 3: the bigger ones. You know, there's Velocity truck Centers that 563 00:30:41,920 --> 00:30:45,680 Speaker 3: I was just visiting in California. They have the sixty 564 00:30:45,720 --> 00:30:50,560 Speaker 3: three locations. So there are definitely some of those larger ones. 565 00:30:50,600 --> 00:30:53,440 Speaker 3: And consolidation is rampant. We're seeing it more and more. 566 00:30:53,680 --> 00:30:55,760 Speaker 3: But then we still have a lot of dealerships that 567 00:30:56,440 --> 00:31:00,840 Speaker 3: are one or two rooftops as well. On our board 568 00:31:00,840 --> 00:31:02,840 Speaker 3: of directors. We have a really good mix of some 569 00:31:03,120 --> 00:31:07,160 Speaker 3: large dealers and then the smaller I would say most 570 00:31:07,200 --> 00:31:10,480 Speaker 3: when a talk to them, might have three to seven locations. 571 00:31:10,560 --> 00:31:11,880 Speaker 3: I say, it's pretty average. 572 00:31:12,360 --> 00:31:12,560 Speaker 1: You know. 573 00:31:12,600 --> 00:31:16,520 Speaker 3: There's a lot of pressure from the manufacturers to consolidate too, 574 00:31:17,160 --> 00:31:18,120 Speaker 3: trying to get their. 575 00:31:18,080 --> 00:31:20,120 Speaker 2: High performers to get more stores, and the. 576 00:31:20,120 --> 00:31:22,200 Speaker 3: Folks that might not be performing as well, you know, 577 00:31:22,320 --> 00:31:26,040 Speaker 3: maybe it's time to not be in here anymore, you know, 578 00:31:26,240 --> 00:31:29,680 Speaker 3: But but no one wants to leave because they love 579 00:31:29,720 --> 00:31:31,000 Speaker 3: their businesses. 580 00:31:30,720 --> 00:31:35,280 Speaker 1: You know, right, are there certain challenges facing smaller locations 581 00:31:35,360 --> 00:31:39,200 Speaker 1: or smaller dealer networks versus large dealers networks? I mean 582 00:31:39,240 --> 00:31:41,840 Speaker 1: outside the obvious scale that a larger one provides. 583 00:31:42,640 --> 00:31:45,600 Speaker 3: Yeah, I mean I think, you know, when you're smaller, 584 00:31:47,320 --> 00:31:50,360 Speaker 3: there are challenges even you know, I think there's I 585 00:31:50,400 --> 00:31:53,000 Speaker 3: think number one challenge is probably the pressure to consolidate 586 00:31:53,560 --> 00:31:56,720 Speaker 3: that people, the manufacturers are putting pressure on these folks 587 00:31:56,720 --> 00:32:00,200 Speaker 3: to grow or go, I guess is kind of this thing, 588 00:32:00,920 --> 00:32:04,120 Speaker 3: and so I think that that's probably the biggest pressure. 589 00:32:04,480 --> 00:32:08,400 Speaker 3: And then obviously, especially you know during the challenges like COVID, 590 00:32:08,520 --> 00:32:13,200 Speaker 3: when you're larger, you can manage catastrophe better. You know, 591 00:32:13,640 --> 00:32:16,480 Speaker 3: part shortages, you can take from one area and move 592 00:32:16,480 --> 00:32:20,720 Speaker 3: it to another area. You can just the scope of 593 00:32:21,120 --> 00:32:24,600 Speaker 3: you know, the amount of employees and resources you have. Obviously, 594 00:32:24,680 --> 00:32:27,440 Speaker 3: as you grow, yeah, you get new challenges, but you 595 00:32:27,520 --> 00:32:31,040 Speaker 3: also can manage times of trouble I think maybe a 596 00:32:31,080 --> 00:32:34,920 Speaker 3: little easier. Whereas with the smaller dealerships, I do think, 597 00:32:35,280 --> 00:32:37,280 Speaker 3: you know, they have a lot of challenges get getting 598 00:32:37,280 --> 00:32:39,840 Speaker 3: folks in the door, you know, finding the workers. I 599 00:32:39,880 --> 00:32:43,360 Speaker 3: think the employee deployment challenges probably the number one thing. 600 00:32:43,800 --> 00:32:46,520 Speaker 3: And then also when you're smaller, it's hard to navigate 601 00:32:46,560 --> 00:32:52,680 Speaker 3: all these regulations. You know, the National Automobile Dealers Association 602 00:32:53,320 --> 00:32:55,280 Speaker 3: did this really good report a few years of ago 603 00:32:55,360 --> 00:32:59,440 Speaker 3: about the regulatory cost on small businesses of all these regulations. 604 00:33:00,120 --> 00:33:02,560 Speaker 3: And this was several years ago, but the cost of 605 00:33:02,600 --> 00:33:06,240 Speaker 3: dealerships was around two hundred thousand dollars per rooftop, just 606 00:33:06,280 --> 00:33:07,920 Speaker 3: the cost of regulations annually. 607 00:33:08,640 --> 00:33:10,920 Speaker 2: And you think, I'd imagine it's a. 608 00:33:10,960 --> 00:33:12,800 Speaker 3: Lot more today, and it's going to be a lot 609 00:33:12,880 --> 00:33:15,400 Speaker 3: more into the future, and it's much harder for these 610 00:33:15,400 --> 00:33:16,840 Speaker 3: smaller groups to absorb. 611 00:33:16,600 --> 00:33:21,680 Speaker 1: That, gotcha. And so when you're when you're talking to 612 00:33:21,880 --> 00:33:26,400 Speaker 1: the dealers today. You know, when you're looking at various markets, 613 00:33:26,600 --> 00:33:28,840 Speaker 1: are there any markets that are stronger than others? Like 614 00:33:28,960 --> 00:33:31,840 Speaker 1: is the vocational market better than the medium duty market 615 00:33:31,960 --> 00:33:35,120 Speaker 1: or medium duty market better than the heavy duty market? 616 00:33:35,520 --> 00:33:37,280 Speaker 1: Are you seeing any pockets of strength? 617 00:33:39,120 --> 00:33:41,120 Speaker 3: You know, I know there was a lot of pen 618 00:33:41,240 --> 00:33:43,720 Speaker 3: TEP demand for a while on the medium duty side 619 00:33:43,760 --> 00:33:47,480 Speaker 3: because throughout COVID, you know, they were there was much 620 00:33:47,520 --> 00:33:52,080 Speaker 3: more emphasis from the manufacturers on getting the bigger vehicles out. 621 00:33:52,520 --> 00:33:54,800 Speaker 3: So I know there's been pen TEP demand on that side, 622 00:33:56,280 --> 00:34:00,400 Speaker 3: and you know, I think vocational is pretty strong too, 623 00:34:00,840 --> 00:34:04,600 Speaker 3: But I don't hear anything of like being. I haven't 624 00:34:04,640 --> 00:34:07,840 Speaker 3: heard anything recently about this mark portion of the markets 625 00:34:07,880 --> 00:34:08,919 Speaker 3: just going gangbusters. 626 00:34:09,440 --> 00:34:14,719 Speaker 1: I haven't heard that, gotcha. So I think, you know, 627 00:34:15,120 --> 00:34:19,760 Speaker 1: when when looking at everything you know that is facing 628 00:34:19,800 --> 00:34:24,200 Speaker 1: the industry, I guess I guess the number one challenge 629 00:34:24,400 --> 00:34:26,280 Speaker 1: would be these new regulations. 630 00:34:27,000 --> 00:34:30,080 Speaker 3: Absolutely. I mean, this is what is keeping dealers up 631 00:34:30,120 --> 00:34:32,680 Speaker 3: at night. You know, I'm relatively new. I started this 632 00:34:32,760 --> 00:34:35,520 Speaker 3: role two years ago. One of the things I tried 633 00:34:35,520 --> 00:34:39,360 Speaker 3: to do very much is by brand do outreach to 634 00:34:39,360 --> 00:34:42,440 Speaker 3: the dealers, whether it was going to visit them, placing 635 00:34:42,480 --> 00:34:45,799 Speaker 3: a phone call and just saying, hey, I'm new. Tell 636 00:34:45,840 --> 00:34:48,640 Speaker 3: me what you're most concerned about going forward? You know 637 00:34:48,719 --> 00:34:53,600 Speaker 3: what does keep you up at night every single conversation. 638 00:34:54,200 --> 00:34:57,200 Speaker 3: It was the regulations. You know, how are we going 639 00:34:57,320 --> 00:35:00,680 Speaker 3: to handle twenty twenty seven? And they knew that this 640 00:35:00,719 --> 00:35:04,400 Speaker 3: Phase three regulation was coming that they knew this was 641 00:35:04,880 --> 00:35:07,640 Speaker 3: when the Knox EPA rule was going through, and they 642 00:35:07,640 --> 00:35:10,160 Speaker 3: were extremely concerned about that Knox rule and the cost 643 00:35:10,200 --> 00:35:13,120 Speaker 3: of adding you know, upwards of thirty thousand dollars to 644 00:35:13,160 --> 00:35:18,000 Speaker 3: each truck. But I will say the fear of the 645 00:35:18,040 --> 00:35:24,239 Speaker 3: Phase three greenhouse maths regulation is exponential compared to that 646 00:35:24,360 --> 00:35:28,399 Speaker 3: Knox rule. So now it's almost all that anyone can 647 00:35:28,440 --> 00:35:30,520 Speaker 3: think about. You know, where is the truck market going? 648 00:35:30,560 --> 00:35:33,360 Speaker 3: What are we going to see happen? Because the stories 649 00:35:33,360 --> 00:35:37,919 Speaker 3: that are coming out of California are absolutely unbelievable. And 650 00:35:38,040 --> 00:35:41,480 Speaker 3: I could go on for hours about California stories and 651 00:35:41,640 --> 00:35:43,400 Speaker 3: how these regulations. 652 00:35:42,760 --> 00:35:43,919 Speaker 2: Are playing out. 653 00:35:44,040 --> 00:35:47,960 Speaker 3: You know, the California Air Resource Board which has created 654 00:35:48,000 --> 00:35:49,040 Speaker 3: these regulations. 655 00:35:49,080 --> 00:35:50,719 Speaker 2: So they are not elected. 656 00:35:50,920 --> 00:35:55,560 Speaker 3: You know, their bureaucrats never probably set foot most of 657 00:35:55,560 --> 00:35:59,000 Speaker 3: them in a truck dealership in their life, let alone 658 00:35:59,400 --> 00:36:03,600 Speaker 3: knowing terribly much about the truck market. They had a 659 00:36:03,640 --> 00:36:07,440 Speaker 3: hearing the other day on some amendments to their regulations 660 00:36:07,520 --> 00:36:11,680 Speaker 3: that they were trying to get finalized, and the tow 661 00:36:11,800 --> 00:36:16,160 Speaker 3: truck operators really put up a vocal opposition to the 662 00:36:16,239 --> 00:36:18,840 Speaker 3: rule and how it was impacting their business, the rules 663 00:36:18,840 --> 00:36:22,359 Speaker 3: and how they were impacting their business, and a few 664 00:36:22,360 --> 00:36:25,560 Speaker 3: of the cardboard members finally said, you know what, we're 665 00:36:25,560 --> 00:36:28,359 Speaker 3: not in a place to approve these amendments because there 666 00:36:28,360 --> 00:36:30,280 Speaker 3: seems to be some problems. 667 00:36:29,800 --> 00:36:30,799 Speaker 2: With our rules. 668 00:36:31,080 --> 00:36:33,719 Speaker 3: And it was the first time they had ever acknowledged 669 00:36:34,320 --> 00:36:35,720 Speaker 3: that this isn't working. 670 00:36:36,400 --> 00:36:38,600 Speaker 2: And this is the beginning. This is just a few 671 00:36:38,640 --> 00:36:40,080 Speaker 2: months into twenty twenty four. 672 00:36:40,520 --> 00:36:42,759 Speaker 3: Every year it's going to get worse, and then in 673 00:36:42,840 --> 00:36:45,000 Speaker 3: twenty twenty seven it's going to be the entire nation. 674 00:36:45,719 --> 00:36:47,520 Speaker 2: So yeah, that's what's keeping everyone up at night. 675 00:36:48,760 --> 00:36:51,080 Speaker 1: Well, it sounds like you have a busy couple couple 676 00:36:51,080 --> 00:36:52,760 Speaker 1: of years ahead of you. Yeah. 677 00:36:54,160 --> 00:36:57,680 Speaker 3: I just feel for folks so badly, because the sad 678 00:36:57,719 --> 00:37:01,799 Speaker 3: thing is, you know, if we could just let technologies 679 00:37:01,800 --> 00:37:05,600 Speaker 3: evolve and compete, I think there's so many great things 680 00:37:05,600 --> 00:37:08,080 Speaker 3: that we could be doing, just like renewable diesel. If 681 00:37:08,080 --> 00:37:10,600 Speaker 3: we could focus on things like that, that the cost 682 00:37:10,719 --> 00:37:14,960 Speaker 3: is so minimal and we could have such an improvement 683 00:37:15,000 --> 00:37:19,080 Speaker 3: for our air quality now today easily simply without building 684 00:37:19,120 --> 00:37:23,359 Speaker 3: a whole new infrastructure enforcing technology that isn't there for 685 00:37:23,400 --> 00:37:24,239 Speaker 3: every application. 686 00:37:24,960 --> 00:37:26,440 Speaker 2: And we didn't even talk about range. 687 00:37:26,600 --> 00:37:29,640 Speaker 3: I mean, you know what up to three hundred miles 688 00:37:29,719 --> 00:37:32,080 Speaker 3: on an electric truck with a lot of battery weight, 689 00:37:32,600 --> 00:37:37,160 Speaker 3: and then versus you know, diesel can go what fifteen 690 00:37:37,280 --> 00:37:40,560 Speaker 3: hundred miles before refueling in certain situations if they have 691 00:37:40,640 --> 00:37:44,560 Speaker 3: a fuel tank there. You know, it's just there are 692 00:37:44,600 --> 00:37:45,480 Speaker 3: so many challenges. 693 00:37:45,520 --> 00:37:46,600 Speaker 2: But I just we're. 694 00:37:46,440 --> 00:37:50,440 Speaker 3: Hopeful that folks will watch California and see that you 695 00:37:50,480 --> 00:37:54,720 Speaker 3: can't mandate the technology of what the government things folks 696 00:37:54,719 --> 00:37:58,279 Speaker 3: should be purchasing, and that we have to really be 697 00:37:58,400 --> 00:38:03,800 Speaker 3: thoughtful and first of all tackle the low hanging fruit tackle, 698 00:38:03,920 --> 00:38:08,880 Speaker 3: fleet turnover tackle, you know, investing in renewable diesel and 699 00:38:08,920 --> 00:38:12,400 Speaker 3: getting folks to make that transition, and then explore and 700 00:38:12,520 --> 00:38:17,200 Speaker 3: invest in things like natural gas and hydrogen and electric 701 00:38:17,320 --> 00:38:21,239 Speaker 3: vehicles and let you know where they make sense work, 702 00:38:21,320 --> 00:38:23,799 Speaker 3: which I think on electric it's you know. 703 00:38:23,800 --> 00:38:26,720 Speaker 2: Class three to four or five vehicles. 704 00:38:27,200 --> 00:38:29,799 Speaker 1: All right, great, Laura, and I want to thank you 705 00:38:29,840 --> 00:38:33,200 Speaker 1: for coming onto the podcast and it was great meeting 706 00:38:33,520 --> 00:38:36,200 Speaker 1: and hope you can have another conversation down the road. 707 00:38:37,160 --> 00:38:40,920 Speaker 3: Thanks Lee, I really appreciate it. Thank you for your time, 708 00:38:41,160 --> 00:38:43,839 Speaker 3: and I hope you have a good fourth Jo. 709 00:38:44,239 --> 00:38:47,200 Speaker 1: You too, Hope they gave you some time off over there. 710 00:38:47,200 --> 00:38:50,680 Speaker 1: I guess DC kind of slows down the summer right a. 711 00:38:50,680 --> 00:38:53,560 Speaker 3: Little bit, but not you know, I think the campaign 712 00:38:53,600 --> 00:38:55,880 Speaker 3: season is going to pick up for the elections. 713 00:38:56,360 --> 00:38:58,560 Speaker 1: There you go. Well, I want to thank everyone for 714 00:38:58,600 --> 00:39:00,880 Speaker 1: tuning in. If you like the episode, please subscribe and 715 00:39:00,960 --> 00:39:03,000 Speaker 1: leave a review. We've lined up a number of great 716 00:39:03,040 --> 00:39:06,239 Speaker 1: guests for the podcast. Check back to hear conversations with 717 00:39:06,320 --> 00:39:10,279 Speaker 1: C suite executives, shippers, regulators, and decision makers within the 718 00:39:10,320 --> 00:39:12,880 Speaker 1: freight markets. Also, if you have any ideas for a 719 00:39:12,960 --> 00:39:15,640 Speaker 1: future episode, please hit me up on the terminal or 720 00:39:15,719 --> 00:39:18,200 Speaker 1: on Twitter at logistics Lee or on LinkedIn as well. 721 00:39:18,440 --> 00:39:27,400 Speaker 1: Thanks a lot and everyone take care. Bye.