Bernie Marino on the CDG podcast. Bernie, welcome. Thank you for having me. Appreciate it. Thanks for coming on. We're really excited about this. I know you're very limited on time today, so we'll keep it very concise. But lots to discuss. I wanted to get started with, at a very high level, for those that don't know who Bernie Marino is, right? You were in the car business for many years, built an incredibly successful dealer group, 15 plus locations, one of the largest auto retailers in the Midwest.
Then you did something pretty unconventional. You sold and you pivoted to call it automotive tech, which is something that I have some experience with, but you did it in a pretty unique way. And I had lots of questions coming about this. We'll talk about what you've done there. And now you've since moved to the public sector. So extremely unconventional path throughout your career and really your life. The first thing that just came to mind is why. And it's a very big picture question, and you can answer it in many different ways. But why, what gave you that drive to want to go from the business private sector to the public sector? And what was it?
Yeah, well, so for me, I love this country. It's that simple. As you know, as born in Columbia, South America, I moved to the US when I was a kid. This country's given me every opportunity in the world to succeed. I could never have done anywhere else on earth would I accomplish here? I'm sure it's the same for you. And you either sit back and watch the country go off a cliff or you do something about it. My dad used to say, you either read the book or you write the book. And if you're reading it and not writing it, then they'll complain about the way it ends. And so for me, the trigger is COVID.
I thought our government lost its ever-living mind during COVID. And I saw a lot of career politicians add no business sense in making decisions that affected businesses and families. And I felt that that what we need to do to fix this country is send more business people to Washington, DC, which is why I'm doing it. You know, lots of dealers look at you as this figure, right? Like you've come from within auto. You built yourself up from really from nothing. I mean, you grew all these dealerships. And now you're really, you've really gone involved in the public sector. You're running for Senate as well. What are your views on the economy, affordability? It's one of the biggest issues that dealers are dealing with nowadays.
Inflation, right? All this combined. What are your thoughts on where we're at today and where we're headed? Yeah, I mean, I think our elected leaders, principally like top line, their number one responsibility is to make this country stronger, safer and more prosperous. But not for the wealthy. The wealthier are going to take care of themselves. We have to grow our middle class. That's what's made America the thriving democracy or republic that has been forever is that we have this growing middle class. That's what makes it very different than places like right came from Columbia, South America. So the way you do that is you have to make certain that you're always taking care of working class Americans. And what we're seeing right now is an affordability crisis across the board.
I mean, cars, there was a day not too long ago where you could lease a decent car for two or three hundred bucks a month. That's almost gone. I'm talking about, of course, with nobody down. Rent is unaffordable. Housing is unaffordable. Food is unaffordable. So we have to really take care of that. How do we fix that? Again, it sounds nice on paper, right? But as dealers, how does a country actually fix this affordability issue? Well, number one, we have to unleash America energy. Energy is the underlying cost of a lot of goods. So you drive the cost of that down by making more energy here in America. We have to have a tax code that encourages growth. We have to have a regulatory environment that doesn't stifle growth.
In the auto industry specifically, stop telling car companies what kind of cars to make. Let the car companies listen to their consumers and make the kinds of cars consumers want. What you're seeing right now is internal combustion engine cars are going through the roof through all these regulations or regulations on top of regulations that keep making the cars much more expensive. The government is dictating things like you have to have a test in 26 models to make sure they're not impaired before the car starts. That just adds unnecessary cost to the price of a car. I don't drink. Why am I being forced to take an impairment test before my car will start? That's crazy. The average price of car is 50 grand. We've got to drive that way down. We do that by having less regulation in an environment where car companies can do what they need to do.
You mentioned these mandates. What are your thoughts on EV subsidies and what do you see this EV retail penetration heading to in the next couple of years? Let me just say I'm not against electric cars. There's some pretty cool electric vehicles out there. It's not about what kind of car I like or I don't like. What it's about is letting the marketplace choose. Get rid of all the incentives. Get rid of all the mandates. Make certain that California can't dictate cafe requirements to the rest of the country because that's insane. We have one consistent cafe requirement around the country. We do that and just set the level playing field. Let the car companies compete with the products that consumers want. I think that's electric. Great. That's hybrid. Great. If it's something else that we haven't even thought of, great. If it's internal combustion engines, it just keeps getting better and better. That's fine too. But the government is not built for innovation and it certainly shouldn't be driving innovation.
I'd have to agree with you in that we've seen the pendulum swing consistently. EVs really took off around COVID and since then the market has cooled. It seems to me at least where it's really a product selection thing at most. But I'm in a similar camp as you. I actually just reviewed a model wide other day on YouTube. I put up a video about this. It seems to be that the mandates have really messed up the system a little bit. Like you said, most dealers, why I speak to are very pragmatic. They say, hey, it's an asset. I can retail it. Amazing. But let the market decide. That's the healthiest thing that we could possibly do for the economy and for consumers. Yeah. Imagine if the government weighed in on tech the way they're weighing in on cars 40 or 50 years ago. You know, the coolest thing on the market would be a portable HRAT player. The marketplace dictated it. I remember when the first iPhone came out and then of course 15 iPhones later and they have competitors and competition. Remember the the the the Blackberry used to be like the peak of technology, a flip phone before that and the marketplace drove us to where we are today. It will continue to drive us that way. Let's leave the auto industry alone. That's the key message. Again, it's not about being anti anything. It's about letting the marketplace decide. There's a marketplace that is dramatically smarter than any bunch of bureaucrats.
There seems to be so much division about just the EV topic among Democrats, Republicans. Elon Musk recently endorsed Donald Trump for president. You know, historically Donald Trump wasn't necessarily pro or anti-musque or but or they definitely wasn't pro. We can figure out the latter. What do you think about that endorsement and what do you where do you think we're headed to? Like will this division change? I actually just posted a stat on X about Edmunds put out a study showing that, you know, EV sentiment by political party, you know, 19% of Republicans said I like EVs, 55% of Democrats, 33% independent. So again, massive dispersion here. What do you think about Elon Musk endorsement? Do you think that in the world is going to change and potentially we're going to see more Republican EV buyers or is the sentiment going to change? What's your take?
I think it's two different conversations. I think Elon endorsed President Trump because Elon cares a lot about this country. He cares a lot about legal immigration. He cares a lot about crime and education. He's a libertarian at heart. So of course, President Trump has a lot more in common with somebody like Elon Musk that he does with somebody like Kamala Harris who's objective. We are lunatic on the EV topic. I think you're talking about the rural urban divide more than anything else. I mean, if you live in downtown Boston, and EV can work for you, right? You live on Kam Ave and you work in Brighton. Yeah, you go back and forth three miles a day. Sure. That's a great option for you. If you live in rural Ohio, absolutely not. If you enjoy driving a pickup truck that has power and ability to pull, the things that you need for your work, not a car you like. And again, all this should be the marketplace.
The marketplace is insanely efficient. You know, it's like colors of cars. Sometimes it's silver, then it's black, then it's white, then it's red. Can you imagine the government say, hey, red paint is bad. Everybody should drive a white car. It's just, it's such a silly analogy, but because it's so silly to think that the government should be telling us what kind of vehicles to drive. And by the way, the batteries explain to me how that's green. 80% of the underlying chemicals come from China. Most of our electricity in this country comes from fossil fuels. The cars are heavier, so you're wearing out tires more. Insurance is dramatically higher. It's why 50% or so of ED buyers decide, hey, you know, an ice car is better for me. Raging's idea is a real thing.
It's again, especially it plays like rural Ohio. So I think what you're seeing is that rural areas understand that those cars are not for them. It happened to be more Republican. Urban areas, those cars fit better for them. They tend to be more Democrat. I want to, I want to transition and I want to ask you a question. I didn't even plan this in advance. But if there's any deal or listening to this, right, what's like, you mentioned COVID was that spark for you to, you know, run for public office, right? But they give us a little like inside peak into your brain. Like the process is happening, right? I mean, it's just so unconventional for a deal or two, you know, sell their entire operation. It's an extremely entrepreneurial business that we know, you know, you got to cut your teeth to build a retail automotive business. Super difficult. What, like, what was that sort of transition process for you mentally, where you said, I'm going to do this and I'm going to sell my business. Or had, you know, I can imagine that was a process. What was that like for you?
Well, I mean, the people who came before us in this country did a lot more, sacrifice a lot more than what I sacrificed. In reality, you just have to decide what's important to you. You know, I could have 30 dealerships today, right? That certainly was a trajectory I was on. The question is what motivates you every day to get out of bed and go to work. And as you know, work 16 to 80, 20 hours a day. And the hours that you're not working, you're thinking about work, right? There's times I'm sure you've had it with your spouse or girlfriend with a site. You're not listening to me. It's because you have 19 things about work that you're thinking about. It's 24 seven when you're an entrepreneur. But yet what motivates me right now is being a part of fixing this country, reuniting this country, getting back to common sense. If there's one thing that comes out of my election, is that I'll motivate other business people to say, you know what? Screw it. I'm going to go out on a service country for a fixed period of time and then come home. This idea that these guys go to politics for their whole life, they quite literally die in office, is nuts. They have no life experience that would allow them to make the decisions that they're making. Anybody with normal common sense, it's even been in a dealership world for a day, would tell you, my god, let customers pick what kind of car they buy, not because they're forced to it or incentivize to do it.
I want to talk a little bit about tech. You worked, as I mentioned, you sold your dealerships. You worked on, you actually co-founded a company called ChampTitles. You went from a traditional auto retail to like latest tech, blockchain, very innovative. Can you give us just a very, very brief summary of what this is, what problem you're looking to solve, what's the status of ChampTitles. It's a problem that every dealer here listening, every person that's ever bought a car will likely be able to resonate with.
Can you just give us a little overview of that? Yeah, as you know, car titles are absolute abomination. You take a car and on trade with a payoff and you have to actually adjust the value of the vehicle, because you know you may not be able to retail that car for four, five, or six weeks, because you don't have the title. That's insane. It's this crazy piece of paper that's dictating so many problems in the ecosystem, whether you're a bank, insurance company, dealer, etc.
So we said, why don't we just make that digital? So you can transfer it from party to party quicker. So what we did is we built software using blockchain that we then sold the state governments that allowed them to make the entire title and process digital. We've actually created something new that's just coming out. It's basically a synthetic, national title. So if you're in Kansas and you sell somebody at car that you took on trade from Arizona and that person lives in Georgia, you could do that entire transaction through West Virginia, digitally with one interface.
It's really, really cool. You get the title and your dealership's name within 24 hours after sending the payoff check. So you're not waiting for FedEx or lost paperwork, etc. Really, really cool. I think we're champ titles is going to go is to the moon. I sold my shares in that company because I didn't want to have a conflict of interest. But let me tell you, that was a heartbreaking decision. My partner Shane Bigelow is doing an amazing job. And we're now in six states, fully activated West Virginia and Kentucky and New Jersey being the most West Virginia being kind of our laboratory for all of our advanced ideas. But just a really cool company, really cool idea to be able to make it happen. You know, digital records for titles, like ingenious.
It's like something so simple. Yeah, you wonder like, how has this not been done before? So that is my question to you. Like, how has this not been done before? What are the obstacles you're dealing with? Right. When are we going to see this rollout all over the country? I mean, just tell us a little bit about that. Yeah. I mean, like any great technology, right? We always look at each other and go, damn, why didn't I think of that? Right. Why didn't I come up with that idea? Because the hard part is taking an idea and landing it. Right. There's a whole laundry list of ideas that we have in our heads all the time. It's actually implementing that's very difficult. That's why for me, my partner Shane was critical because I was the idea guy. He was the implementation guy and he did an amazing job. So it's typically the best companies are the ones that solve the simplest problem in the most elegant way.
And that's what we've done. I think we'll, I think champ within five years is now the nationwide standard. And I think much like boarding passes on a plane. Remember, it used to be we got the boarding pass mailed to you. I don't know if you're that old and then you got it where you could print it at home and then you got it on your phone. The idea that somebody would mail you a boarding pass via USPS is insane. And I think in five to 10 years, the idea that there was a piece of paper that proved that you own a car will be an insane idea. I'd agree with that. I think it's definitely, definitely the direction we need to go. And it's a real problem.
Extremely complicated system, very slow, lots of mistakes. So definitely, I'm really excited to see where this goes. And by the way, I heard about this years ago, I was, I think someone I told me at the time to connect with you possibly because you were in kind of auto tech and whatnot. So very cool to see how this is progressing. All right, we got a couple more minutes.
So I want to do a little bit of rapid fire here. Chinese cars in the US, is it going to happen? Is it not happening? When is it going to happen? Thoughts? No, definitely that. We can't allow the Chinese to steal our auto industry. We've already given a third of our auto industry to Mexico. We're not going to do that with China. So playing devil's advocates, right? Devil's advocate. Sorry. You see, you know, wind fast, you know, starting to retail in the US, you know, other countries. Is this like a China thing specifically? Or is this like, you know, more foreign entities? How do you see this?
Well, it starts as a China thing because obviously they massively subsidize their industry. We'll destroy our industry because they have basically slave labor. We're not going to allow that to happen. And I think generally speaking, we want to make certain that we make things here in America. You got companies like Honda, companies like Toyota, that are doing a great job. They want to sell cars here in America. Let's make them in America. BMW Mercedes does the same thing. So we need Volkswagen. So we need more manufacturing that happened in the US to provide those good middle class jobs that I talked about earlier.
Speaking of manufacturing in the US, what do you see as the future for legacy auto? I mean, right now, there are, you know, many are really struggling. They've, you know, they've gone through ups and downs. But, you know, Ford was in the penalty box in the last, or say, in the last two and a half years. Now it's kind of Stellantis who's just pricing is all over. Product selection is struggling. They're really struggling with sales. Where are, you know, domestic automakers? What's the future for them? They need to get their act together. I mean, at the end of the day, look at Toyota. Toyota does an amazing job of honoring its auto dealers. They understand the partners. If I were the chairman of the board of General Motors, I would get out of retail completely. I would put distributors in place and completely focus on making, designing, and engineering the world's greatest, most desirable cars. Let somebody else take care of the distribution of retail. I think where the domestic went wrong when they started going down the wrong road is when they thought they could do retail better than car dealerships.
Big mistake. It's like, imagine a car dealer thinking that they know how to manufacture a car. Better than the car company. Stupid. So get out of retail. Honor your dealers. Support them. Made the cars that people want. That's where their focus should be. If they do that, I think the auto industry and the US can thrive. Tomorrow I put you back into car business. What franchise are you going after? What do you want to buy? Well, you know, my heart and souls with Mercedes Benz, because they're the ones that gave me the first opportunity to buy a franchise. As you know, car dealerships that typically inherited from generation to generation. I was able to buy my first dealership at 38 years old. Happened to be a Mercedes Benz dealer. So for that reason, I'm very attached to Mercedes. But man, I would love, and I think everybody would love to be a Toyota dealer. I mean, I joke there's Toyota dealers and people who want to be Toyota dealers, because you have a car company that honors you. They're on their side. They know that you add value to the system. You're not a detriment to it. So Toyota is absolutely doing a lot of things really well.
Do you regret going into politics? No, not at all. You know, this is what you're called to do. Obviously, I missed the car business. I missed my team. I missed the clients. And that's the affirmation that's ongoing. It's a great, great business. I love cars. So I missed the business. I certainly missed the opportunity to do it with my son, who's now really into it. He's 26 years old. He's going to be one of the youngest dealers in the country. Pretty soon he's going through the NADA Academy now. So I would have loved to have worked with them. But this is what I'm motivated and called to do now. My final question for you is, if there's any dealer listening to this who's inspired by you, by your journey, by what you've done and by what you're doing, what's your message to them? Think about doing this. The water's warm. Jump on in. This country needs you. As dealers, we know how to deal with a lot of variables. My opponent has attacked me because I was a car dealer. So he hasn't said Bernie was a bad car dealer. He just said, we don't want car dealers in the Senate because car dealers are bad people. That's been his ad approach. I think it's ridiculous. He calls me a used car salesman. He's a career politician and never had a job. So he's defamed the entire auto industry. But those of us who were automobile dealers, those are complex business. It's very complex. You got to bring a lot of people together. You got to get to a result. You got to make things happen. And ultimately, you can't make a living unless you actually accomplish something. Think about if that same model applied to politicians, they didn't get paid unless they actually did something. They'd all be homeless and broke. Pay for performance, baby.
Absolutely. You know, I knew that it's so, it's so clear that you're, you were in a car business when I asked you the question about affordability and you're like, you could get a car for 300, 300 hours a month. No money down. And I'm like, only a car person would emphasize the no money down. No one else would have that attention to detail. Let's go sign it. I love it. Bernie, this was awesome. I just want to wish you good luck. Thanks for coming on.
I really, really quick and short, but packed with insights and really enjoyed it. Seriously, good luck with everything. And you know, we'd love to have you on in the future. Yeah, of course, if you could put my website out there, burningmarino.com. They can sign up. Please follow. They can contribute.
We're getting out spent like crazy, by the way, my opponent has spent 42. Million dollars to zero, by the way, spent zero so far on TV, spent 42 million. He went from being up five points to being up three points because again, this disparagement of me as a car dealer has really motivated the car dealer community. So we'd love to get everybody's support. Absolutely. We'll throw up your links in the show notes as well. And again, thanks for coming on. It was really great. Thank you.