Episode Description
Episode #1366: Texas is rapidly overtaking California as the center of automotive influence, Rivian is betting drivers will talk to their vehicles instead of pushing buttons, and Apple is taking another swing at making Siri the AI assistant it always promised to be.
Show Notes with links:
- For decades, California has been the auto industry's trendsetter. But new J.D. Power data shows Texas is rapidly closing the sales gap and has already taken the lead in total consumer dollars spent on new vehicles, signaling a major shift in where automotive influence may live next.
- California's share of U.S. new vehicle sales has slipped from 12.5% to 11.4%, while Texas has climbed from 9.3% to 10.8%, shrinking the gap to just 0.6 percentage points.
- Texas has already overtaken California in total consumer spending on new vehicles, holding a 10.7% share versus California's 9.9%. Higher truck sales and stronger transaction prices are driving the difference.
- The shift could accelerate America's move toward trucks and SUVs. Pickups make up 27% of Texas sales compared to 17% in California, potentially making the business case for future sedans even tougher.
- Dealers should pay attention to financing trends. Texas buyers lease far less often, rely more heavily on financing, and generate roughly $400 more F&I revenue per vehicle than California dealers.
- As J.D. Power puts it: "Understanding Texas is no longer optional. It is essential."
- Just as automakers like VW, Audi, Hyundai, and Mercedes are bringing physical buttons back by popular demand, Rivian is doubling down on screens and AI.
- Rivian's software chief Wassym Bensaid says voice should become the primary way drivers interact with their vehicles, arguing that traditional buttons shouldn't be the main interface anymore.
- The company's new AI-powered Rivian Assistant can control vehicle functions, including HVAC, using natural language. Instead of saying "Open the frunk," drivers can say, "I have a bag in the front of the car."
- Rivian's upcoming R2 won't include traditional climate control buttons. Instead, steering wheel scroll wheels can handle functions like fan speed adjustments.
- The strategy runs counter to several major automakers that have recently reversed course and reintroduced physical controls after customer complaints about touchscreen-heavy interiors.
- Bensaid believes previous voice systems failed because "the technology has been broken," and says advances in AI finally make conversational vehicle control practical enough to replace many physical controls.
- Two years after announcing an AI-powered Siri that never fully arrived, Apple is back with a major reboot. At WWDC, the company unveiled what it calls an "entirely new version of Siri" designed to be more conversational, more useful, and deeply integrated across its devices.
- Siri can now understand what's on your screen, interact with apps, and maintain more natural conversations using a more expressive and customizable voice.
- The assistant will work across iPhone, iPad, Mac, Apple Watch, and Vision Pro, with new ways to access it including Dynamic Island gestures, Spotlight integration, and gaze controls on Vision Pro.
- Apple says privacy remains a core differentiator. Requests are processed either directly on-device or through its Private Cloud Compute system rather than being broadly shared with third parties.
- Siri is also getting its own dedicated app, putting it in more direct competition with AI assistants like ChatGPT, Claude, and Gemini.
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