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This week's Auto Intelligence explores one of the most revolutionary marketing campaigns in automotive history—how Subaru discovered and authentically engaged lesbian customers in the 1990s, earning the beloved nickname "Lesbaru."

In the early 1990s, Subaru was struggling with declining sales and failed attempts to compete with Toyota, Ford, and Honda. Rather than fight for the same suburban demographic, they pivoted to niche marketing, targeting groups willing to pay premium for all-wheel drive: teachers, healthcare professionals, IT workers, and outdoorsy types.

But market research revealed something unexpected—pockets in places like Northampton, Massachusetts and Portland, Oregon where single women were buying Subarus. These women were lesbian, and data showed lesbians were four times more likely than average consumers to buy Subarus.

The mid-1990s context was hostile to LGBTQ+ visibility. "Don't Ask, Don't Tell" was new law, Ellen DeGeneres hadn't come out, and companies feared being known as "gay brands." When IKEA aired an ad with a gay couple, someone called in a bomb threat.

Tim Bennett, Subaru's Director of Advertising, championed the groundbreaking campaign. Working with Mulryan/Nash agency and creative director John Nash, they developed "gay vague" advertising—subtle references lesbian audiences could decode while remaining invisible to straight consumers. License plates reading "XENA LVR" (Xena: Warrior Princess) or "P-TOWN" (Provincetown). Slogans like "Get Out. And Stay Out" and "It's Not a Choice. It's the Way We're Built" worked as brilliant double entendres.

But authenticity went beyond clever ads. Subaru sponsored the Rainbow Card (with Visa and British Airways), hired openly lesbian tennis star Martina Navratilova as spokesperson, and implemented domestic partner benefits internally. As Bennett said: "I can't go marketing to gays and lesbians, but then internally, my policies don't work."

Paul Poux from Mulryan/Nash noted how lesbian focus groups appreciated Subaru's approach, while Rainbow Card co-creator Pam Derderian called Navratilova's involvement "a beautiful, full circle moment."

Results were remarkable. Between 1993-2004, Subaru more than doubled sales. By 2002, readers of The Advocate and Out magazines were nearly three times more likely to buy Subarus. The cultural impact created lasting brand loyalty—nearly thirty years later, LGBTQ+ customers still consistently choose Subaru as their favorite automotive brand.

Other automakers like Toyota, BMW, Ford, and General Motors' Saab division followed with varying degrees of succ

About Auto Agentic:

Auto Agentic (www.autoagentic.ai) is pioneering AI-driven solutions transforming automotive retail. Founded in 2024, we deliver intelligent, adaptive solutions designed to help dealerships streamline operations, optimize sales performance, and elevate customer experience. With a focus on ethical AI, seamless integrations, and real-time insights, Auto Agentic empowers dealership teams—never replaces them—unlocking new levels of productivity and profitability.

Our suite of intelligent agents handles everything from lead nurturing and inventory optimization to service appointment management and customer follow-ups. By using AI to replace time-consuming tasks and augmenting decision-making with advanced analytics, Auto Agentic helps dealerships stay competitive in a rapidly evolving market.

Available on all major podcast platforms. New episodes every Tuesday, Thursday, and Saturday.

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The automotive retail landscape is experiencing its most dramatic transformation since Henry Ford established the dealership model in 1914. Our latest Auto Intelligence episode with hosts Steve and Claire reveals why the Tesla versus traditional dealership narrative is already outdated—the future belongs to hybrid integration models.

Tesla's H1 2025 performance tells a sobering story: deliveries dropped 13% to 720,803 units from 830,766 in 2024. Meanwhile, traditional automakers leveraged dealer networks brilliantly—GM surged 12% to 1.4 million deliveries, with Chevrolet becoming the best-selling EV brand after 100%+ growth in Q2. Ford saw 14.2% growth, proving established manufacturers can compete effectively in electrification.

The Chinese market transformation is staggering: 15.65 million units in H1 2025, with New Energy Vehicles hitting 44.3% market share. BYD alone sold over 1 million EVs globally, decisively surpassing Tesla's volume. SAIC Group also exceeded 2 million units, demonstrating scale advantages in favorable regulatory environments.

Consumer preferences drive this evolution: 77% want Tesla-like fixed pricing transparency, but 61% still prefer completing purchases at dealerships. Millennials (31% of likely buyers) and Gen Z (21%) expect seamless digital experiences neither pure direct-to-consumer nor traditional models currently deliver consistently.

Legal challenges intensify for direct-to-consumer models. Tesla faces Wisconsin lawsuits and New York's proposed permit revocation legislation. Reports suggest Elon Musk's political involvement affects regulatory sentiment, adding complexity beyond business considerations across 50 different state franchise laws.

Mercedes-Benz's European agency model achieved 17% market share increase in 2024 through controlled transition maintaining dealer relationships while adding direct-to-consumer elements. Conversely, Volkswagen paused direct-to-customer BEV sales in December 2024 due to complexity, while BMW adjusted full rollout timelines.

Traditional dealerships showed resilience despite challenges. Nation's 16,957 franchised dealers sold 15.9 million vehicles generating $1.2 trillion in sales. Though net pretax profit dropped 24.4%, service revenue grew to $156.46 billion—13.2% of total sales versus 12.4% in 2023.

AI becomes the great equalizer: 44% of consumers trust AI recommendations over salespeople, while 61% want AI vehicle recommendations. Software-defined vehicles expected to reach 7.6 million units in 2025, fundamentally changing update, maintenance, and monetization models.

About Auto Agentic:

Auto Agentic (www.autoagentic.ai) is pioneering AI-driven solutions transforming automotive retail. Founded in 2024, we deliver intelligent, adaptive solutions designed to help dealerships streamline operations, optimize sales performance, and elevate customer experience. With a focus on ethical AI, seamless integrations, and real-time insights, Auto Agentic empowers dealership teams—never replaces them—unlocking new levels of productivity and profitability.

Our suite of intelligent agents handles everything from lead nurturing and inventory optimization to service appointment management and customer follow-ups. By using AI to replace time-consuming tasks and augmenting decision-making with advanced analytics, Auto Agentic helps dealerships stay competitive in a rapidly evolving market.

Available on all major podcast platforms. New episodes every Tuesday, Thursday, and Saturday.

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The Dark Side of Innovation: How Ukraine's War Is Rewriting Mobility Forever

In our latest Auto Intelligence episode, hosts Steve and Claire from Auto Agentic tackle one of the most challenging topics we've covered - how the war in Ukraine has become a "war lab for the future," fundamentally transforming battlefield mobility in ways that will inevitably impact civilian transportation.

The research reveals staggering statistics: by early 2025, Ukraine was producing over 1.5 million drones annually, with drones accounting for 60-70% of damage to Russian equipment. But it's not just about drones - Ukrainian special forces are using electric scooters for reconnaissance missions, while soldiers deploy e-bikes for silent insertions behind enemy lines.

Key Quote: "We are not just building drones. We are building an ecosystem where drones talk to each other, share data, and act as a team," explains Oleksandr, an engineer at a Kyiv-based drone startup.

The transformation extends beyond individual vehicles to entire systems. Ukraine's Delta situational awareness platform has achieved what Western militaries have struggled with for decades - true Combined Joint All-Domain Command and Control capability. The speed of innovation is unprecedented, with Ukrainian companies moving from concept to battlefield deployment in months rather than years.

Companies like Auto Agentic are watching these developments closely, as the same technologies revolutionizing battlefield mobility - autonomous navigation systems, electric vehicle optimization, swarm intelligence - will inevitably find civilian applications. The challenge is harnessing their positive potential while mitigating risks.

The episode explores the darker implications: the psychological toll of constant surveillance, the democratization of advanced military technology, and the ethical questions surrounding autonomous weapons systems. As one Western defense official noted, "We are seeing the end of the era where only the richest countries could field the most advanced weapons. Now, innovation and speed matter more than money."

From dirt bikes racing across battlefields to AI-guided drone swarms, Ukraine is writing the blueprint for future warfare - and future mobility. The innovations emerging from this conflict will shape how we move people and goods for decades to come.

About Auto Agentic:

Auto Agentic (www.autoagentic.ai) is pioneering AI-driven solutions transforming automotive retail. Founded in 2024, we deliver intelligent, adaptive solutions designed to help dealerships streamline operations, optimize sales performance, and elevate customer experience. With a focus on ethical AI, seamless integrations, and real-time insights, Auto Agentic empowers dealership teams—never replaces them—unlocking new levels of productivity and profitability.

Our suite of intelligent agents handles everything from lead nurturing and inventory optimization to service appointment management and customer follow-ups. By using AI to replace time-consuming tasks and augmenting decision-making with advanced analytics, Auto Agentic helps dealerships stay competitive in a rapidly evolving market.

Available on all major podcast platforms. New episodes every Tuesday, Thursday, and Saturday.

Send us a text

The numbers tell the story: the global automotive AI market exploded from $10.88 billion in 2024 to a projected $17.56 billion in 2025, representing a staggering 61.5% compound annual growth rate. Meanwhile, 78% of automotive manufacturers have implemented some form of AI as of early 2025, up from just 62% two years ago.

Design Revolution: Mercedes-Benz Chief Design Officer Gorden Wagener made headlines with his bold prediction that "in ten years, maybe most of the design will be done by AI, and it will make designers obsolete." But as Wagener explains, "You get 99% of crap with AI and sheer quantity... but you get 1% good stuff, and we keep learning." General Motors is already using AI to design lightweight components, while Ford leverages virtual prototyping and Nissan optimizes aerodynamics through AI-driven processes.

Manufacturing Excellence: BMW's revolutionary Car2X technology transforms every vehicle on the production line into an active participant in manufacturing, avoiding an average of 500 minutes of assembly disruption per year at a single plant. Audi's Industrial Computer Vision achieves detection rates above 99% compared to 80% accuracy of traditional human inspection. Ford's Cologne facility now has completed vehicles driving themselves off assembly lines without human drivers.

Retail Transformation: According to Lotlinx, 80% of auto dealers plan to invest in AI technologies in 2025. Cox Automotive's vAuto platform uses machine learning to forecast demand for specific vehicle models, while platforms like AutoFi and Upstart reduce loan approval times by up to 70%. BMW and Tesla have pioneered AI-driven virtual showrooms that rival traditional dealership experiences.

Service Innovation: Tesla exemplifies predictive maintenance through their over-the-air update system, with AI algorithms continuously analyzing data from their fleet to identify patterns that precede component failures. Companies like RAVIN AI and UVeye have developed AI-powered inspection systems that significantly reduce assessment times while improving accuracy.

Autonomous Driving: Tesla leads with over 7 million vehicles generating more than 75 billion miles of driving data annually. Waymo operates commercial robotaxi services providing over 250,000 paid rides per week. NVIDIA's Cosmos platform can transform limited real-world driving data into billions of synthetic miles for training, as CEO Jensen Huang explained at CES 2025.

Financial Impact: A UK automotive case study showed a 75% increase in ROI within one year from AI implementation. Google Cloud research found that 60% of executives using generative AI in production see positive ROI. The global automotive AI market is expected to reach $405.3 billion by 2032.

Key Quote: As Achyut Jajoo at Salesforce observed, "The

About Auto Agentic:

Auto Agentic (www.autoagentic.ai) is pioneering AI-driven solutions transforming automotive retail. Founded in 2024, we deliver intelligent, adaptive solutions designed to help dealerships streamline operations, optimize sales performance, and elevate customer experience. With a focus on ethical AI, seamless integrations, and real-time insights, Auto Agentic empowers dealership teams—never replaces them—unlocking new levels of productivity and profitability.

Our suite of intelligent agents handles everything from lead nurturing and inventory optimization to service appointment management and customer follow-ups. By using AI to replace time-consuming tasks and augmenting decision-making with advanced analytics, Auto Agentic helps dealerships stay competitive in a rapidly evolving market.

Available on all major podcast platforms. New episodes every Tuesday, Thursday, and Saturday.

Send us a text

The Stark Reality: While the global hydrogen vehicle market is projected to reach $142.15 billion by 2032, current sales tell a different story. Only 5,621 hydrogen fuel cell vehicles were sold globally in the first half of 2024, compared to 4.5 million battery electric vehicles. In the United States, all 18,000 hydrogen cars on the road are concentrated in California, with Toyota Mirai sales dropping 74% to just 172 units in Q1 2024.

Infrastructure Bottleneck: The chicken-and-egg problem is real. With only 59 hydrogen refueling stations across the entire United States (versus over 2 million EV charging points), infrastructure remains the critical barrier. Construction costs range from $1.5-3.2 million per station, and in 2024, the U.S. actually lost stations—adding 9 but decommissioning 12.

Commercial Applications Show Promise: While passenger cars struggle, heavy-duty applications are gaining traction. Volvo will begin hydrogen truck testing in 2026, while DHL and Diageo North America have deployed Nikola hydrogen trucks achieving 80% emissions reduction versus diesel. The hydrogen truck market is projected to reach $10 billion by 2030.

Technology Breakthroughs: Significant advances are emerging. Hyundai aims to mass-produce 100,000 fuel cells annually by 2025. Honda's next-generation fuel cell module (2027) will halve costs while doubling durability. Norwegian researchers at SINTEF have reduced platinum content by 62% and membrane thickness by 33%, cutting costs by 20%.

Government Investment: Massive public support continues. Canada's Infrastructure Bank invested $337 million in HTEC's H2 Gateway program. California committed $115 million for 111 new stations by 2027. The U.S. Infrastructure Investment and Jobs Act allocated $8 billion for Regional Clean Hydrogen Hubs, while the Inflation Reduction Act provides up to $3/kg tax credits.

Regional Dynamics: Asia-Pacific dominates with 73.72% of global market share. South Korea targets 6.2 million fuel cell vehicles by 2040, while Japan aims for a fully hydrogen-powered economy by 2050. Asia operates 748 refueling stations versus Europe's 294 and North America's limited network.

The Efficiency Challenge: Battery electric vehicles achieve 85% energy efficiency compared to hydrogen's 30-40%, but industry experts like Bill Elrick of the Hydrogen Fuel Cell Partnership emphasize safety and reliability, while critics like Tesla's Elon Musk call fuel cells "extremely silly."

Key Insight: Rather than asking when hydrogen will replace gasoline cars, the smarter question is where hydrogen complements battery electric vehicles. The future likely involves battery electric for daily commuting and urban delivery, with hydrogen serving long-haul trucking and rapid-refueling applications.

About Auto Agentic:

Auto Agentic (www.autoagentic.ai) is pioneering AI-driven solutions transforming automotive retail. Founded in 2024, we deliver intelligent, adaptive solutions designed to help dealerships streamline operations, optimize sales performance, and elevate customer experience. With a focus on ethical AI, seamless integrations, and real-time insights, Auto Agentic empowers dealership teams—never replaces them—unlocking new levels of productivity and profitability.

Our suite of intelligent agents handles everything from lead nurturing and inventory optimization to service appointment management and customer follow-ups. By using AI to replace time-consuming tasks and augmenting decision-making with advanced analytics, Auto Agentic helps dealerships stay competitive in a rapidly evolving market.

Available on all major podcast platforms. New episodes every Tuesday, Thursday, and Saturday.

Send us a text

How North American Dealerships Can Thrive in the Software-Defined Vehicle Era

The New Reality: From Oil Changes to OTA Updates

As Mark Johnson, General Manager at a large multi-brand dealership in Ohio, explained: "We're not just selling cars anymore. We're selling experiences, updates, and peace of mind. And that's a whole different ballgame."

The transformation is accelerating rapidly. By 2027, over 80% of new vehicles sold in North America will support significant over-the-air updates, with the North American SDV market projected to grow from $50 billion in 2024 to over $400 billion by 2030 (MarketsandMarkets).

The Training Revolution: Ford University Leads the Way

Ford Motor Company is setting the standard with Ford University, launched across 3,000 dealerships serving 164,000 employees across North America. Abby Vietor, Ford's Global Director of Dealer Training and Productivity, identified the core challenge: "Many dealers have expressed the challenge of managing the swift pace of new products and technology developments."

Service Lane Transformation: The Herb Chambers Success Story

Herb Chambers Companies in Boston, with 60 dealerships representing dozens of brands, exemplifies successful SDV adaptation. They created a Concierge Referral Service that acts as a central hub, coordinating across all locations to provide seamless customer experiences.

The 90-Day SDV Readiness Plan

Month 1: Assessment

• Audit staff digital skills
• Identify gaps in service and sales processes
• Determine where customers get confused

Month 2: Implementation

• Launch mandatory SDV training for all staff
• Update CRM and digital tools
• Ensure systems handle ongoing customer relationships

Month 3: Activation

• Host customer "Tech Nights"
• Roll out digital service offerings
• Implement proactive update notifications

Ongoing: Evolution

• Partner with OEMs for continuous updates
• Gather customer and staff feedback
• Continuously adapt and improve

Technology Integration: The Samsung-Hyundai-Kia Alliance

A groundbreaking 2024 partnership between Samsung, Hyundai, and Kia brought Samsung's SmartThings IoT platform into North American showrooms. Chang Song, President of Hyundai Motor Group Advanced Vehicle Platform Division, explained their vision: "to enrich customers' mobility experience by offering personalized services that extend beyond transportation, seamlessly integrating vehicles with smartphones."

About Auto Agentic:

Auto Agentic (www.autoagentic.ai) is pioneering AI-driven solutions transforming automotive retail. Founded in 2024, we deliver intelligent, adaptive solutions designed to help dealerships streamline operations, optimize sales performance, and elevate customer experience. With a focus on ethical AI, seamless integrations, and real-time insights, Auto Agentic empowers dealership teams—never replaces them—unlocking new levels of productivity and profitability.

Our suite of intelligent agents handles everything from lead nurturing and inventory optimization to service appointment management and customer follow-ups. By using AI to replace time-consuming tasks and augmenting decision-making with advanced analytics, Auto Agentic helps dealerships stay competitive in a rapidly evolving market.

Available on all major podcast platforms. New episodes every Tuesday, Thursday, and Saturday.

Send us a text

How Code is Rewriting the Automotive Playbook

The Paradigm Shift

As Dr. Rudi Ostermann, CTO at TE Connectivity, explained: "We are at a turning point. The car is no longer just a machine; it's a digital platform that can evolve and improve throughout its life." This fundamental shift from hardware-centric to software-driven vehicles is happening faster than most realize—McKinsey projects that over 80% of new vehicles in North America and Europe will have significant software-updatable features by 2027.

Business Model Revolution

The traditional automotive business model is being completely rewritten. Companies like BMW are experimenting with monthly subscriptions for heated seats and adaptive cruise control, while Mercedes-Benz offers "Acceleration Increase" software unlocks for their EQ electric vehicles. Tesla pioneered this over-the-air update approach, but now every major automaker is racing to catch up.

Dealership Transformation

Perhaps no group feels this shift more acutely than auto dealerships. As WardsAuto analysis noted: "With the advent of over-the-air software updates managed by OEMs, the roles of managing and servicing vehicles become increasingly ambiguous." Dealerships must evolve from traditional service providers to digital concierges, with technicians as comfortable with code as carburetors.

The threat of disintermediation is real—Tesla, Rivian, and Lucid already sell cars online with minimal dealer involvement. However, forward-thinking dealers are finding new opportunities, experimenting with "feature fairs" where customers can test-drive capabilities before subscribing.

Consumer Impact

For drivers, SDVs promise unprecedented flexibility. AAA reports that annual maintenance costs for electric SDVs are about 30% lower than traditional vehicles, though ADAS repairs after collisions can be 2-3 times higher. IDTechEx projects that by 2034, the average North American car buyer will spend about $70 monthly on software features, up from $15 in 2023.

Fleet operators are seeing immediate benefits. According to Geotab, SDV-enabled fleets can reduce downtime by up to 25% and maintenance costs by 15%, making them particularly attractive for shared mobility applications.

Challenges Ahead

The transformation isn't without hurdles. The industry faces a global shortage of software engineers, cybersecurity experts, and data scientists. A Pew Research survey found that 68% of drivers are "very concerned" about how their vehicle data is used and shared. Regulatory bodies like NHTSA and UNECE are scrambling to develop guidelines for software recalls and OTA updates.

The Road Ahead

As Boston Consulting Group concluded: "The magnitude of change that the software-defined vehicle represents cann

About Auto Agentic:

Auto Agentic (www.autoagentic.ai) is pioneering AI-driven solutions transforming automotive retail. Founded in 2024, we deliver intelligent, adaptive solutions designed to help dealerships streamline operations, optimize sales performance, and elevate customer experience. With a focus on ethical AI, seamless integrations, and real-time insights, Auto Agentic empowers dealership teams—never replaces them—unlocking new levels of productivity and profitability.

Our suite of intelligent agents handles everything from lead nurturing and inventory optimization to service appointment management and customer follow-ups. By using AI to replace time-consuming tasks and augmenting decision-making with advanced analytics, Auto Agentic helps dealerships stay competitive in a rapidly evolving market.

Available on all major podcast platforms. New episodes every Tuesday, Thursday, and Saturday.

Send us a text

AI Transforms Automotive Design: From Clay Models to Digital Creativity in Weeks, Not Months

The automotive design revolution is happening faster than anyone predicted. What once took months of clay modeling and iterative sketching now occurs in weeks through AI-powered tools, fundamentally reshaping how vehicles are conceived and created.

The Numbers Tell the Story: The global automotive AI market is exploding from $14.15 billion in 2023 to a projected $734.97 billion by 2032—a staggering 55.1% annual growth rate that signals complete industry transformation, not just adoption.

Key Industry Developments:

Generative AI Breakthrough: Toyota's FelGAN system allows designers to input parameters like weight and material constraints, instantly receiving hundreds of optimized design alternatives. Meanwhile, Audi's Generative Adversarial Networks create wheel designs so realistic that "even the human eye cannot, or can only barely, distinguish them from real photos."

Human-AI Collaboration: Despite fears of replacement, industry leaders emphasize augmentation over automation. Mercedes-Benz Chief Design Officer Gorden Wagener explains: "The goal is not to replace designers, but to work alongside AI to unlock new ideas that humans might miss." Alan Macey from ArtCenter College of Design notes that AI tools can get "any untrained person 95% of the way there" in professional design quality.

Manufacturing Revolution: Ford's digital twin technology has reduced design time by 25%, while Tesla's AI-driven robotic systems achieved 35% production efficiency increases and 40% defect reductions. BMW's virtual simulations have boosted production efficiency by 30%.

Personalization at Scale: Tesla's AI personalization system uses camera and seat sensors to map driver routines, automatically adjusting everything from climate to entertainment. Smart Eye's Automotive Interior Sensing AI has secured 320 design wins from 21 OEMs, with lifetime value exceeding 7.35 billion Swedish kronor.

Market Reality Check: 78% of automotive manufacturers have implemented AI in operations as of early 2025, up from 62% just two years ago. The integration spans from Tier One manufacturers with full AI integration to experimental implementations across the industry.

Looking Ahead: Mercedes-Benz's Gorden Wagener offers a bold prediction: "In ten years, maybe most of the design will be done by AI." While the timeline may be aggressive, McKinsey projects 3.5 million autonomous vehicles on U.S. roads by 2025, with 60% of global cars featuring Level 2 autonomy.

The Bottom Line: AI isn't replacing human creativity in automotive design—it's amplifying it to unprecedented levels. As Toyota's Avinash Balachandran observed, the future lies in combining "trad

About Auto Agentic:

Auto Agentic (www.autoagentic.ai) is pioneering AI-driven solutions transforming automotive retail. Founded in 2024, we deliver intelligent, adaptive solutions designed to help dealerships streamline operations, optimize sales performance, and elevate customer experience. With a focus on ethical AI, seamless integrations, and real-time insights, Auto Agentic empowers dealership teams—never replaces them—unlocking new levels of productivity and profitability.

Our suite of intelligent agents handles everything from lead nurturing and inventory optimization to service appointment management and customer follow-ups. By using AI to replace time-consuming tasks and augmenting decision-making with advanced analytics, Auto Agentic helps dealerships stay competitive in a rapidly evolving market.

Available on all major podcast platforms. New episodes every Tuesday, Thursday, and Saturday.