WEBVTT

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Lauren,

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we're still learning the details of the
new deal between the United Auto Workers

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and GM ending a six week strike.

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GM has said that the work stoppages
has cost them $800 million so far.

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How detrimental was this
strike to GM's future?

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It's very detrimental to GM's future.

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The strike caused them to
shut down their big plants,

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which included SUVs and trucks,

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and they need to produce the most
profitable vehicles in order to offset the

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losses. Every car manufacturer
takes with electric vehicles.

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And when there's a limitation such
as parts, plants and deliveries,

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it makes their current customers unhappy
when they bring them in for service

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because they can't get the parts.

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Between that and then the wage increases
that GM has likely agreed to settle

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this strike. How much do you see all
of this directly affecting consumers?

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Oh, it will affect consumers for sure.

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When you're talking about a 25%
increase in wages across four years,

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you're probably going to see somewhere
between a thousand and $1,500 increase

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for each vehicle.

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They have to offset these losses because
although they could cut other places,

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which you know they will, they're
going to cut on advertising budgets,

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marketing budgets, PR budgets,

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they're going to cut back their employees
and they do need to cut back on their

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executive salaries for sure, as
we've all learned. But still,

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somehow you can't take in more money
or spend more money and take in

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less money. You'll have to take
in more to offset those losses.

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Do you overall count this as a
victory for the auto workers?

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It is a victory for the
auto workers and Sean Fe,

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who delivered what he promised.

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It is not a victory for the
auto industry as a whole.

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It's not a victory for consumers,

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although I think that they were
well underpaid. The UAW workers,

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they're finally getting a livable wage,

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but still there has to be some give
and take. We just don't want to see.

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In 2008 what we saw again in the future,

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which is the big three car manufacturers
going to Congress looking for a

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bailout,

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which is what I fear in this particular
situation because I have to stop

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spending and start
focusing on making cars.

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Let's shift focus for a minute.
Lauren GM subsidiary Cruz,

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its driverless car company,

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had its license revoked in the
state of California recently.

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What does this mean for the
future of driverless cars?

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Has the whole industry gotten ahead
of itself? Will it ever happen?

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I don't think you'll ever see
autonomous or self-driving cars,

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even though Tesla likes to, that
their autopilot is. It is not.

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And as a matter of fact,

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national Highway Traffic
Safety Administration is
going after them because many

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people have died.

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In the case of cruise and autonomous
vehicles can be proven to be done

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in very enclosed areas like on a college
campus or something that are on a busy,

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large corporation. But
for on the main streets,

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you've got other drivers out there.

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You've got hackers that still
have no way to stop that.

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You've got weather conditions,
which are a huge problem.

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You've got insurance company
and reinsurance companies
saying they don't want to

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back it, and consumers don't like
the fact. Once the first person died,

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and that was in an Uber that was in
Arizona, it started causing doubt.

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And now you're seeing cruises going
down, roads that are under construction,

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getting stuck in concrete, causing
traffic jams. Consumers are getting it.

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They're like, you know what,
I guess I'll just drive.

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That's why I have a license. So we're
going to see that the license was revoked.

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They may come back and you'll
see it in more limited form,

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but you're not going to see autonomous
vehicles on the main roads until every

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single vehicle is autonomous,
and that will never happen.

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Lauren, for retail investors out there,

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if your money manager called you today
and said they wanted to lean your

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portfolio heavily into gm, would you say
go for it, or would you hang up on 'em?

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I would not suggest that. I would say
look at some of the suppliers instead,

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like Nvidia or some of
the tire manufacturers,

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because electric vehicles way more
and they go through tires quicker,

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and so you're seeing a lot of
brake companies, tire companies,

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making big headways and strides.

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I do not give suggestions on financials.

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This is just my perspective.

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Lauren, thank you so
much. It's great advice.

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Thanks for having me.