Honda-Sony Dealer Service, Vroom v Carvana, 3 Day Workweek

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

Welcome to Wednesday as we discuss the potential of US Honda Dealers being a service solution for the new Honda-Sony EV. We also review Vroom's latest earnings call, as well as one Chick-fil-a operator's 3-day work week that’s working.

• Despite a proposed direct to consumer, online only sales model for the joint EV project between Honda and Sony, CFO Kohei Takeuchi, said the 1000+ US dealers are well situated to service the vehicles during the company’s financial results announcement yesterday
  • He noted that discussions are still ongoing about the servicing plan
  • Regarding the sales plan he continued the sentiments that it would be different from Honda’s current way, saying: "It will be something unconventional, not Sony, not Honda, but something new," he said.
  • Last month Honda and Sony announced deliveries as early as 2026 of the vehicles which will be produced in it’s Ohio plant and exported to Japan
  • There were many questions from US Dealers who wanted to play a role in the new venture
  • Honda continues to trim its N.America outlook due to shortages however, Takeuchi noted "The worst of the period is over, but there are still shortages of specific applications."
  • #TILI: Who wants to come up with the leapfrog plan for “something new”?!
• Vroom’s recent earnings call touted record e-commerce gross profit per unit of $4,206, up 16%, decrease in expenses, net loss improvement from $(115.1) million to $(51.1) million, and a marginal improvement in EBITA
  • Tom Shortt, Chief Executive Officer of Vroom, commented: “We continued to make progress on our three key objectives and four strategic initiatives as outlined during our Investor Day in May. We are intensely focused on improving the customer experience.
  • He also noted 98% of their customers received completed registration before the expiration of temporary ones
  • Earlier this year, Vroom shifted its focus to trim volume to focus on increasing gross profit per vehicle. .Similarly to the strategy change announced by Carvana last week.
  • Vroom stock saw a 7.9% increase yesterday but is still down over 90% YoY. Carvana is down over 97%
• In a time when hiring and retention is a focus across the retail world, one Chick-fil-a operator is getting attention from his introduction of a 3-day work week at his store…and it seems to be working
  • Justin Lindsey designed and implemented a full-time three-day-a-week work schedule that has eliminated turnover at the restaurant and made it a magnet for new hires
  • Divided the team of 25 team members and 18 team leaders into two pods who work three regular 13-14 hour shifts each week
  • They work 2 Saturdays a month and are never on call
  • Mr Lindsay shared what prompted the move; “Traditionally, we had used the term ‘the gift of time’ to refer to serving our guests in a quick and timely fashion. But we had always left employees out of that equation.”
  • He has had zero manager turnover and is a hiring magnet

Hosts: Paul J Daly and Kyle Mountsier
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