AD #2609 – GM and Michelin Test Airless Tires, BMW Unveils New M8 Coupe and Convertible, Buick Denied Tariff Exemption

This is Autoline Daily reporting on the global automotive industry.

CHINA CRACKING DOWN ON AMERICAN COMPANIES
It sure looks like China is cracking down on American companies in retaliation to the Trump Administration cracking down on Chinese electronics firm Huawei. Ford’s joint-venture company in China was hit with a $23 million fine for limiting the minimum resale price that its dealers can set on used cars. Bloomberg reports that China is drawing up what it calls “unreliable entities” which seems to be a list of U.S. companies that it could go after.

GM DENIED TARIFF EXEMPTION
This trade war looks like it’s only going to escalate. GM just lost its bid to have the Trump Administration give it an exemption on the 25% tariff imposed on imported Buick Envisions. Reuters reports that GM has been eating the cost of that tariff and not raising prices. So far this year, Buick sold about 13,000 Envisions in the U.S., down 10% from last year. Volvo already stopped plans to import the XC60 from China because the tariffs would make them uncompetitive. It is importing them from Sweden instead.

MERRILL LYNCH SAYS RARE EARTH BAN OVERBLOWN
Meanwhile, Merrill Lynch says that worries about China banning exports of rare earth elements to the U.S. have been overblown. It says the U.S. could import these materials from Australia and India. It expects automakers to use non-rare earth magnets such as ferrite magnets, and it says there is a rising supply of rare earth materials coming from recycling.  

NISSAN CONCERNED OVER FCA/RENAULT MERGER
The merger between Renault and FCA is running into some roadblocks. The French automaker delayed a vote on the proposal yesterday but the board could meet as soon as today to vote. However, Bloomberg reports that the Nissan representatives on the Renault board will abstain from voting because the Japanese automaker has concerns about the deal. It wants more clarity on intellectual property rights, especially when it comes to electric vehicles. Nissan wants to know how FCA and Renault calculated that the merger would lead to 6 billion euros saved in synergies, since its taken Nissan and Renault 10 years to reach 5.6 billion euros in synergies. And Nissan wants to know how the merger would impact its alliance with Renault.

GM AND MICHELIN TEST AIRLESS WHEELS
General Motors is teaming up with Michelin to test out an airless wheel assembly, called the Uptis. Michelin and other tire manufacturers have been developing wheels like this for years. But earlier versions were not suited for cars because they were not meant to travel at high speeds. Maybe this new design with the flexible rubber section attached to a more traditional wheel hub is the right combination to break through the speed barrier. And think of the benefits. No Tire Pressure Monitoring System, no more punctures on the road and no crazy tire wear due to under- or over-inflated tires. It’s also interesting GM is testing the assembly on the Chevy Bolt EV. Due to the massive amounts of instant torque EVs can generate, they can wear tires out much faster. Could this new setup last longer? And can they be used in the winter? And what does it cost? Still a number of questions, but It is encouraging that we have not seen this technology go away and that it continues to evolve. GM says it wants airless wheel assemblies on passenger vehicles as early as 2024.

GORDON MURRAY CREATES NEW SUPERCAR
Gordon Murray shook the automotive world when he designed the McLaren F1 supercar in 1992 and now he’s re-writing the supercar rule book with a spiritual successor to the F1, a vehicle Murray calls the T.50. It features a mid-engine, rear-drive layout. Power comes from a naturally aspirated Cosworth V12 that makes 650-horsepower and a little over 330 lb-ft of torque. Those may not sound like supercar numbers, but the T.50 only weighs 980-kilograms or 2160-pounds. Murray also says the car takes aerodynamics into a completely new domain. Most notable is a 400mm fan at the rear of the car that helps control underbody airflow, which is similar to a system Murray designed for the Brabham BT46B Formula One that was dubbed the “Fan Car.” He also took the seating position from the F1. The driver seat is mounted in the middle of the car, flanked by two passenger seats. Only 100 examples of the T.50 will be made, they will cost over 2 million pounds and are scheduled to come out in 2022.

Automakers are scrambling to develop a pipeline of young engineers who know how to make autonomous cars. So GM and the SAE came up with a competition involving 8 universities from the U.S. and Canada to turn Chevrolet Bolt EVs into AVs. And that’s what tomorrow’s Autoline After Hours is all about. So join John and Gary for a look at what it takes to develop an autonomous car.

BMW UNVEILS NEW M8 COUPE AND CONVERTIBLE
BMW just took the wraps off the new M8 Coupe and Convertible. They’re each powered by a 4.4L TwinTurbo V8 that cranks out 600 horsepower and 553 lb.-ft. of torque. There’s even a more powerful version that kicks out 617 horses. The engine is mated to an 8-speed Steptronic transmission. The higher horsepower V8 can hit 0 to 60 MPH in just 3 seconds and has a top speed of up to 189 MPH. Production of the models kicks off in July. The M8 Coupe starts at $134,000 while the Convertible starts at about $143,500.

SEAT LAUNCHES 1ST ELECTRIC CAR
And speaking of new vehicles, Spanish automaker SEAT, which is part of the VW Group, just introduced its first EV, an electric version of its Mii compact car. It’s powered by a 61kW electric motor and a 36.8 kWh lithium-ion battery. That setup provides a range of 260 kilometers or about 161 miles based on the European WLTP test cycle. SEAT didn’t reveal pricing but said it will cost the same as a combustion engine car in the same segment. The Mii electric goes into production this July.

And that wraps up today’s show, thanks for watching and we’ll be back here again tomorrow.