Is Nissan The Right Honda Partner?, CA Dealers Push Back on Scout, Overpriced Fast Food

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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The clock is about to run out on 2024, but that doesn’t stop the grind of the retail auto industry! Today we’re covering the latest awkwardness from the potential Honda-Nissan merger, how California dealers are threatening to sue Scout over their DTC plans, and over-priced fast food.

Show Notes with links:

• Honda's CEO Toshihiro Mibe faced an awkward press moment when asked why Nissan would make a good business partner, candidly admitting, “That’s a difficult one,” when trying to explain the rationale. The comment highlights broader skepticism and questions surrounding the partnership.
  • Honda has a solid hybrid lineup but struggles with EV development after parting ways with GM. Meanwhile, Nissan faces financial instability and a declining EV market share despite its history as an early leader with the Leaf.
  • Nissan's robust manufacturing network and supply chain might align with Honda’s hybrid expertise. However, overlapping product offerings could limit potential benefits.
  • Nissan’s shares initially soared over 60% after the deal’s announcement but have since plunged by 13% over two days, signaling investor doubts.
  • Both companies face uphill battles, with AlixPartners estimating any meaningful results from a merger might take three to five years.
  • “Ideally, it would’ve been a healthy and financially sound company, rather than Nissan,” said analyst Julie Boote, echoing doubts about the merger’s feasibility.

• California’s new-car dealers are pushing back against Volkswagen Group and Scout Motors, accusing them of violating state law by taking direct-to-consumer refundable deposits for their upcoming electric Scout models.
  • California’s amended Vehicle Code, effective Jan. 1, 2024, prohibits automakers or their affiliates from direct-to-consumer sales if they already have franchised dealerships in the state. Tesla is exempt, as it has never operated through franchisees.
  • Dealers argue Scout's sales model excludes VW’s 50 franchisees in California, cutting them out of Scout's EV sales opportunities.
  • Scout insists it’s independent from VW, designing a unique electric platform, and claims the direct sales model aligns with their “customer-first vision.”

• A recent study has named Shake Shack and Five Guys as America’s most overpriced fast-food chains, sparking debate over whether premium pricing for burgers and fries is really worth it.
  • Preply analyzed over 57,000 Google Reviews, highlighting Shake Shack as the most overpriced chain, followed by Five Guys and Sugar Factory. Key terms like “expensive” and “not worth the money” dominated customer feedback.
  • A viral receipt showing $22 for a Five Guys burger, soda, and fries led to widespread backlash, with one post asking, “What is the right amount these days?”
  • Despite the criticism, Shake Shack posted strong Q3 earnings, with a 14.7% revenue surge and 17 new locations. CEO Rob Lynch said, “We are proud of the resu

Hosts: Paul J Daly and Kyle Mountsier
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