Ernie Pritchard, Alan Ray, GM discussed on Wheels

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Companies. I talkto one Ah, a couple weeks ago, So there's more Chinese companies say they're coming. One of the little eventually make it Not necessarily, but it's good for Brandon neighbors. Who's your new guy? New big dog up in Plano Morning it and Alan Ray, who's like I knew Alan before he was in the car business when he's telling dealers how to do it. And he got so tired of telling them how to do it. He just said do themselves. All right. It is not to stay home. You know, my wife says, Why don't you do more consulting with dealers? And I said I would feel bad about taking their money because I'm not going to listen. You have a job forever If you're in consulting Yeah. Remember, I go all the way back to Ernie Pritchard right in control. We had the log, everybody and everybody had to wait for somebody else to catch customer before you. Could Nobody ever be on the show room when they were supposed to. And if we started listening, we wouldn't need a consultant. Yes. Well, you would have to know Ernie because Ernie used to this speech with this ping pong ball right and just impervious. So on and so forth, violent after you work three or four dealerships. And you see Ernie make the pitch over and over again. All of which were fine, but it had nothing to do with really being great at selling cars. I asked him to put the Ping pong ball on the floor and stand on it to prove to us that it would not shatter. And he stormed out of the room. I never had to sit through another Ernie Pritchard meet Well done. So I saw this this week. Even I did not know this and you would think I would be on more on top of things, but it was all a Cadillac CT six. Super crews function now, hands down. The best self driving software of any car period at the moment. Most capable level two I've ever seen. What nobody knew until it came out this week is you only get it for free for three years after you buy the car and its $7000 isn't it? I think it's about five. Okay? Yeah, but they're going to put in more cars. But after that, if you don't subscribed on star doesn't have all of its function, as they say, Well, the automatic braking in the lane keeping keeps working. Imagine that. Yeah, but the 180,000 miles of pre mapped roads across America. Yeah, thanks, but nothing. I'll be a little difficult with all the changing there you go, but I look at the GM marketplace has come out. And in fact GM marketplace you can stop on the way to work, Push and get a Starbucks ordered as if you're going to get out of waiting in line at seven in the morning or set a reservation, Whatever. And for every time you do that GM technically gets a cut of the action. Right? Yes. Alan, You bought your wife, a BMW. And you have apple carplay, innit? That's correct. And how much are they charging you for that connection? You know, I don't know for sure, because right now it's still part of the package. But I know that at some point think about six months it start paying, and I'm not sure, but it's not a great deal percent. But, hey, it's gonna be too much. Whatever it is to be quite frank with you. I just wanted the audience to hear people in the car business actually will bitch about people in the car business. But that point B made BMW's thing is apple changes. They're operating systems all the time. So We have to continuously update that system. Hence the reason there's this charge on it. Well, this is interesting now, amid two missions with that car play, and it's always free. It's always free. Only because they haven't figured out how to monetize. It was just a point of what we're discussing. I've been to GM. I've been to the OnStar center that's breath taking in its scope. But Rick Wagoner told me the reason GM loves on star so much is after the revenue. It's a 25% net company. Very lucrative, almost better than almost more lucrative than selling actual vehicle in infinitely more, Because if you think about whatever on sari is 20 bucks a month, I don't know. I've never had it. Never turned it on in the JAG. Their version of it. But if it's 25% net And your 240. That's $60 a make on that car during the course of a year, right? Mitsubishi system, which the Mitsubishi connect after the 1st 2 years of free $9200 a year. That what it is? I believe you're correct things like 1 90 90 year so, Yeah, so they have learned to monetize it. They have monetize er, but here's my point. If they make 60 bucks a year on the car after you buy it. In the course of a 10 year period. Assuming you keep the service in place at 600 bucks now start extrapolating that over the 270 million cars, trucks and SUVs on the roads in America. It's a breathtaking number. That's a lot of money. It's huge. I mean, like you said, It's very lucrative asses. That's a huge number. And it is great. Now, remember, that's just for service like on star. The car companies were saying, Look, we build these cars, a cash intensive. We've got hundreds and hundreds of billions of dollars tied up and we made began a car that nobody wants to buy..

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