AD #3656 – Ford Fires Warning At Biden Admin; AAA: It Costs $12,182/Year To Own A Car; Honda Unveils New EV Concepts

  

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

UAW STRIKE IS RATCHETING UP
Day 12 of the UAW strike and things are really ratcheting up. Today’s a big day in the Detroit area. President Biden is flying in to meet with workers on the picket line to show his support for them. Since the Ford’s Wayne assembly plant outside Detroit is on strike, presumably that’s where he’ll be. Tomorrow former President Trump will be in suburban Detroit to speak to union workers, but he’ll give his speech at a non-union supplier company. Trump has been attacking electric cars and says they will cost union jobs and it’s likely that’s the pitch he’ll make tomorrow.

FORD STOPS BATTERY PLANT IN MICHIGAN
And this is where the plot thickens. Late yesterday Ford announced it is immediately pausing construction of a battery plant that it’s building in Michigan with CATL. In a statement, Ford said it would not resume production until, and I quote “until we’re confident about our ability to competitively operate the plant.” That suggests the stoppage is directly related to contract negotiations with the UAW. The union has been adamant that workers in battery plants earn the same top wages as traditional UAW workers. But non-union battery plants in the US would have significantly lower labor costs to make batteries. And everyone in the industry is struggling to cut the cost of making batteries.

FORD FIRES WARNING SHOT AT BIDEN ADMINISTRATION
But it looks like there’s more to it than that. Let’s connect some of the dots here. President Biden is coming to Detroit and presumably will meet with striking Ford workers. That must be mighty annoying to Ford, to say the least. President Biden also has a lot riding on the transition to electric vehicles, which his administration has backed to the hilt. So when Ford announces it’s stopping construction of a battery plant right on the eve of the President flying into town, it seems to be more than a coincidence. Moreover, the governor of Michigan, Gretchen Whitmer, a Democrat, took a lot of heat providing state subsidies for that battery plant, and with construction of that plant coming to a standstill, it’s going to put her in a bad light. The UAW says it will not endorse President Biden’s reelection campaign unless he earns it. But Ford’s move shows Biden and Democrats like Whitmer that there’s going to be a cost for their support of the UAW strike.

UNIFOR SETS ITS BARGAINING SIGHTS ON GM
OK, one more strike related item, but for this we move north of the border. Unifor, the Canadian union, which already settled a contract with Ford, will now turn its sights on General Motors. While the UAW is negotiating with GM, Ford and Stellantis simultaneously, Unifor is going after them one at a time. GM makes Silverado and Sierra full size pickups in Oshawa, and its engine and transmission plant in St. Catherines supplies multiple assembly plants. So a strike there would have an immediate ripple effect on GM’s manufacturing operations.

CHINA MAD AT EU SUBSIDY INVESTIGATION
China is hopping mad at Europe’s decision to launch an anti-subsidy investigation into Chinese EVs sold in the EU. That could result in tariffs being slapped on Chinese EVs, if the EU concludes that Chinese automakers benefit from state subsidies. China’s commerce minister said the investigation is “a protectionist act that will affect China-EU green cooperation and the stability of the global automotive industry.” China’s commerce minister also met with the EU’s trade commissioner over the weekend in China and also made the message clear that it is not happy with the investigation. But it won’t just be limited to Chinese EV makers, the EU’s trade chief said foreign automakers that export EVs from China to the EU will also be under investigation. And that includes Tesla.

NISSAN GOES ALL-IN IN EVs IN EU
Meanwhile, Nissan is going all-in on EVs in Europe. The automaker announced that every new model it launches in the EU from now on will be 100% electric. And by 2030 its entire lineup will be electric. To celebrate the 20th anniversary of the company’s design studio in London, Nissan revealed a sporty, urban EV concept called the Concept 20-23. It didn’t reveal any details about or specs but it looks like a fun little hatchback with a futuristic design.

HONDA UNVEILS NEW ELECTRIC CONCEPTS
Speaking of fun electric hatches, there’s a big mobility show going on in Japan this week and Honda used the occasion to unveil this 2-door electric commuter concept called the Sustaina-C. The only info Honda released is that it is made of recycled and reused acrylic resin. Presumably it’s just referring to the body panels. But the design has a bit of a retro vibe to it with those round headlamps. Honda also showed this electric scooter called the SC e, which has swappable batteries. And it announced that it will debut an electric sports car concept but it didn’t provide any pictures or drawings of it. Maybe it’s going to be an update of the Sports EV concept that it showed at the 2017 Tokyo Motor Show.

CHINA DOMINATES AUTO SCREEN MARKET
Not only do Chinese automakers dominate the EV segment, Chinese suppliers now dominate the auto display market. We’re talking about the big center screens in cars and trucks. According to a study from the technology research group, Omdia, Chinese suppliers control 45% of the car display market. That’s up from just 7% a decade ago. Specifically, Chinese suppliers control 55% of the LCD market and 18% of the OLED market for screens. Omdia says China will continue to dominate the screen market because of cost and capacity advantages.

FORD FIRST TO OFFER DIGITAL LICENSE PLATES
But maybe the Chinese don’t have this. Ford is the first automaker to offer digital license plates. It partnered with digital license plate maker Reviver, to offer the plates at 300 Ford dealerships in Arizona, California and Michigan. Currently those are the only states that allow digital plates. Customers can also order the plate through a catalog. Some of the benefits of the digital plate include GPS location and customization. But they’re not cheap either. The cheaper battery powered version costs $215 a year or it can be leased for about $20 a month.

AAA: IT COSTS $12,182/YEAR TO OWN A CAR
The cost of everything seems to be going up and that includes owning a car. According to AAA, in 2019 the average annual cost for the first five years of ownership, driving 15,000 miles per year was $9,232. This year, the average cost jumped to $12,182. The study factors in fuel, maintenance, insurance, registration and taxes and depreciation. Not surprisingly, the cost varies by vehicle type. The average cost for a small sedan is $8,939 a year while half-ton crew cab pickups are nearly double at $15,858. And all that is up significantly from the pre-Covid days.

A programming note here. There will not be an Autoline After Hours on Thursday. I will be at the SAE’s North American International Propulsion Conference in Chicago and Gary is traveling on vacation, but we will be back next week and invite you to join us then.

And that wraps up today’s report. Thanks for making Autoline Daily a part of your day.