AD #2520 – Inventory Levels Piling Up in China, Zotye Locks Up U.S. Dealers, EU Push for EVs Could Hurt Industry

On today’s show… weak sales in China is causing inventory to pile up, which is forcing automakers to cut prices… European carmakers warn that the switch to EVs could cost thousands of jobs… and Chinese automaker Zotye says it has dealers lined up to sell vehicles in the U.S. All that and more coming right up on Autoline Daily.

This is Autoline Daily the voice of the automotive industry.

INVENTORY LEVELS PILING UP IN CHINA
Looks like the slowdown in the Chinese car market is forcing automakers, suppliers and car dealers to take immediate action. Merrill Lynch reports that dealers have high levels of inventory and are being forced to discount cars to move them off their lots. Automakers are starting to lower production to prevent inventory from piling up, and they are putting pressure on their suppliers to cut prices. Merrill Lynch says mid-market Chinese brands are under the most pressure, and it expects the Chinese government to reduce incentives for electric cars by more than what automakers are expecting.

BYTON HIDES ITS AUTONOMOUS SENSORS
Lidar is a key technology in bringing self-driving cars to reality. But the sensors are bulky and make the vehicle look more like a science project. So, to make autonomous vehicles look sleeker, Chinese start-up Byton, is showing off a concept called the K-Byte, that features Lidar sensors that can retract. Located behind the front fenders, the sensors pop-out when the vehicle is in autonomous mode and retract once the human takes over driving. David Twohig, the Chief Vehicle Engineer at Byton, told us at this year’s CES, that the sensors on the production version, which will debut in 2021, will be smaller, lighter and more compact than what’s on the concept. You can find that entire interview in the Autoline on the Road section of our website or just look for it on our YouTube channel.

VOLVO TO TEST HANDS-FREE DRIVING IN SWEDEN
And in other self-driving car news, Volvo’s self-driving joint venture, Zenuity, just won approval from Sweden to begin hands-free testing in the country. The company can now test Level 4 autonomous cars on public roads, at speeds up to 50 MPH without having drivers keep their hands on the wheel. The automaker is aiming to launch its self-driving cars after 2021.

We’ve got a great Autoline After Hours lined up this Thursday. Our special guest is Ed Welburn, the former head of design at General Motors. If you have any questions for Ed, send them our way to viewermail@autoline.tv or send us a message on social media.

Volvo doesn’t want you watching ads during the Super Bowl. Find out why, after this.

TOP F1 DRIVERS PAID HANDSOMELY
Life is good if you’re a Formula One driver, but only if you’re a proven winner. The website Grand Prix 24/7 reports that Mercedes is paying Lewis Hamilton $57 million a year for his driving services. Ferrari is paying Sebastian Vettel $45 million and Daniel Ricciardo is getting $17 million a year from Renault. But then it really drops off. Kimi Raikkonen will get $4.5 million driving for Sauber, and at the bottom of the list, Alexander Albon, who was just hired by Toro Rosso, will only make $170,000 this year.

CHINA’S ZOTYE LOCKS UP U.S. DEALERS
We have an update on a November, 2018 story about China’s Zotye Motors selling vehicles in the U.S. According to Automotive News, 19 existing dealers have agreed to sell Zotye vehicles with the first expected to be the T600 crossover. The automaker says the goal is to enter 80 top U.S. markets and have up to 325 sales points by the end of next year. Ford is partnered with Zotye in China but it doesn’t have any involvement in the company’s plan to sell in the U.S.

STARE AT YOUR PHONE, WIN A VOLVO
Car makers love to show ads during the Super Bowl, but Volvo is taking a different approach this year. It doesn’t want you to watch the game or the commercials at all. Instead, Volvo wants people to watch a digital test drive on an eligible mobile device. The game has facial recognition software and the three people who watch the screen the longest without looking away will win a Care by Volvo subscription for an S60. The digital test drive will last throughout the Super Bowl, so if you do happen to look away you can start over again. We wonder if this has anything to do with the Big Game being played at the Mercedes-Benz Stadium in Atlanta, Georgia?

The lack of charging stations in Europe has automakers concerned it hurt sales of EVs. We’ll have more about that, right after this.

PORSCHE PROVIDES TAYCAN OWNERS 3-YEARS OF CHARGING
Well, that was fast. Electrify America announced that all its high-powered chargers are back online. And it’s a good thing too. Porsche has signed an agreement with Electrify America to provide Taycan owners with three years of charging at Electrify America public stations across the U.S. The ability to charge at the stations will be included in the price of Taycan, which is one of the few EVs that can use the high-powered chargers. Porsche’s first EV launches late this year.

EU PUSH FOR EVs COULD HURT AUTO INDUSTRY
European automakers are warning the EU that the push to electric cars will likely cause a loss of jobs in the automotive industry. Since EVs use fewer parts, the ACEA, or European automakers association, says OEMs and suppliers will need 60% fewer staff members. The ACEA also warns that Europe does not have enough charging stations which would limit demand for EVs. Currently, there are about 100,000 charging points in Europe, but 76% of them are in the Netherlands, Germany, France and England.

But that’s it for today, thanks for watching and please join us again tomorrow.