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Runtime: 10:32
0:00 UAW Strike Costs Ford $1.3 Billion
1:22 EV Demand Slowing Fast
2:59 GM Cruise Stops Driverless Ops
4:09 Renault & Valeo Develop Rare-Earth Free EV Motor
5:01 Hyundai Creates New Design Department
5:56 bp Orders $100 Million of Tesla Superchargers
6:42 Xpeng Shows Off VTOLs
7:40 Nissan Reveals Three SEMA Concepts
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
UAW STRIKE COSTS FORD $1.3 BILLION
For GM and Stellantis this is Day 43 of the UAW strike. Here’s the latest. Reports say there’s a flurry of bargaining at GM and Stellantis with the union. That could lay the ground for a quick resolution in a matter of days. But even a quick agreement doesn’t mean that production will resume quickly. Ford is already warning that it will take some time to get supply and assembly lines back up to full speed. And even then, there’s no guarantee that UAW workers will approve the new contract. Mack Truck and the UAW reached a tentative deal earlier this month, but that was overwhelmingly rejected by workers, and no agreement is in sight. Even so, the fact that the UAW president told Ford workers to go back to work before the contract was approved strongly suggests he believes they will vote in favor of it. And it’s no wonder Ford wanted to settle the strike as fast as possible. It says the strike is going to reduce its EBIT profit this year by $1.3 billion and that the new contract will end up increasing the cost of its vehicles by $850 to $900.
EV DEMAND SLOWING FAST
Now over to the EV segment, where automakers are starting to worry about the pace of customer demand. General Motors is delaying retooling an EV plant to make electric pickups, and it dropped its guidance for EV sales next year. Ford is delaying one of the battery plants it’s building in Kentucky with SK, and is cutting overall EV spending by $12 billion. Honda and GM gave up co-developing a low-cost EV. The CFO of Mercedes-Benz describes the EV segment as a “pretty brutal space.” And LG Energy Solution says that EV demand may not be as high as everyone thought a year ago. Here’s the problem. Even though the EV segment is still the fastest growing in the market, it’s not growing as fast as last year. Moreover, there are more and more electric models hitting the market, which is slicing up the pie into smaller pieces. Ford announced it lost $1.3 billion on EVs in the third quarter, but to help drive our point home, all the legacy automakers are losing money on their EVs. And the price war that Tesla triggered at the beginning of the year is only making things worse. So we may be at an inflection point, where OEMs are backpedaling on their EV plans and will put more effort into hybrids and improved IC powertrains until they can get their next generation electrics to the market and the public charging network becomes widespread and reliable.
GM CRUISE STOPS DRIVERLESS OPS
GM’s autonomous unit Cruise is having a rough week. On Tuesday, the company was forced to stop its driverless operations in California after the state’s Department of Motor Vehicles suspended its permits. It also accused the company of withholding video of an accident involving a pedestrian, which is being investigated by NHTSA. And now the company is halting all of its driverless operations across the U.S. In addition to San Francisco, Cruise had AVs operating in Phoenix, Austin and Houston. Cruise says it’s not related to any new incidents but it’s pausing its driverless operations in order to “rebuild public trust.” And to help do that Cruise says it will continue to operate vehicles with a safety driver on board.
RENAULT & VALEO DEVELOP RARE-EARTH FREE EV MOTOR
Renault is working with the supplier Valeo to develop a new generation of electric motor that will power its future EVs. Scheduled to come out at the end of 2027, they have targets of reducing the carbon footprint and size of the unit by 30%, while still making about the same power as Renault’s current electric motors. To reach those efficiency gains, the new motor generation, called E7A, is being built for an 800-volt electronic architecture and won’t use any rare-earth metals by ditching permanent magnets for a wound hairpin motor design. As a result, it will be able to make up to 200 kW or 268 horsepower and do it without using up more electricity. The new motor will be built at one of Renault’s factories in France.
HYUNDAI CREATES NEW DESIGN DEPARTMENT
Ford took all of its EV operations and put it under one division, run by one person, called Ford Model E. Toyota is doing the same with the BEV Factory. And now Hyundai is doing something similar with its design departments. It established the Global Design Division, which will be run by Luc Donckerwolke, the Group’s President and Chief Design Officer. It will encompass all design departments, including Hyundai, Kia and Genesis, and will be in charge of designing future EVs and mobility solutions, like Purpose Built Vehicles and eVTOLs. Each of the major design departments will still have their own person in charge of making sure that the cars look different from one another. But with the Hyundai Group already sharing a common EV architecture across its brands, it makes sense for more collaboration to make the process more efficient.
BP ORDERS $100 MILLION TESLA SUPERCHARGERS
Oil giant bp is making a huge investment in Tesla’s ultra-fast chargers for its bp pulse EV charging network in the U.S. The company announced it placed a $100 million order for the 250-kW chargers and will begin installing them next year, starting in Houston, Phoenix, Los Angeles, Chicago and Washington DC. The chargers will be compatible with both CCS and Tesla’s NACS connectors. bp plans to invest $1 billion by 2030 to build a charging network in the U.S. Globally, bp has installed more than 27,000 EV charge points and plans to boost that to 100,000 worldwide by the end of the decade.
XPENG SHOWS OFF VTOLs
China’s Xpeng not only makes electric vehicles, but it’s also developing flying cars and just revealed two new prototypes. The first one is a two-door coupe that features eight rotors on its hood that can fold in and out of the vehicle. It has transparent doors to increase visibility while flying as well as flush-mounted door handles and wheel covers to improve aerodynamics. The vehicle weighs 1,000 kilograms or about 2,200 pounds. It’s scheduled to go on sale next year with a starting price of $137,000. The other flying car Xpeng revealed is a modular concept that has a person-sized electric drone inside that can separate from the body. The vehicle looks like a combination of a van and truck and seats five people, while the drone seats two people and can be flown manually or automatically.
NISSAN REVEALS THREE SEMA CONCEPTS
Unlike Stellantis, Nissan doesn’t have to worry about a UAW strike and so it will be attending this year’s SEMA show in Las Vegas, which kicks off at the beginning of next week. And the thing I like about the vehicles Nissan is taking is that they’re not the crazy and wild stuff. While that’s cool, Nissan’s vehicles highlight the same kind of upgrades real owners will make. Like this Sentra with a prototype NISMO suspension, NISMO wheels and a tuned version of the car’s 2.0L turbo engine, which makes nearly 190 horsepower in stock form. Or a Frontier pickup fitted with actual NISMO off-road parts. And it’s even thinking about how to upgrade the new Rogue with more prototype off-road parts from NISMO. And if NISMO is anything like Jeep and Mopar, many of these prototype parts and pieces will become production components that you can buy.
But that brings us to the end of today’s show. Thanks for making Autoline a part of your day and I hope you have a great weekend.
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ICE bans and Mandates will not work to sell more Electric Vehicles. These moves were tried in California to sell Zero-emission vehicles and the effort failed miserably. The market is customer driven not mandate driven.
Back in Feb./Mar. time frame of this year I said here on Autoline daily that it looked like most people who wanted an EV had already got one and that sales were reaching an equilibrium.
Completely agree with 1st comment but one company has a corporate culture where it is not only welcoming to really smart creative people regardless of race color or creed but embraces them and keeps committees out of their way. This leads to innovation and trying to drive prices down and profits up. Remember the best part is no part. Also to create exciting cars for the driver even if they are not a gearhead with entertaining electronics and games. Perhaps the government could take a lesson from this.
The competition not only is coming it is here, so to ALL the automotive industry including the working person the race has started get racing.
@1 Really? I am pretty sure that if the government bans ICE powered vehicles, that sales of new ICE vehicles will cease. I’m not one for draconian government measures but when implemented thoughtfully over time they can be a good thing. Phasing out incandescent light bulbs was done over a little more than a decade and the world did not stop spinning. If EVs continue to improve and less expensive models are offered, I think they will become more popular with the public. In some use cases, hybrid powertrains may be necessary, such as towing or work trucks. But for most Americans, EVs will work just fine. Charging networks will continue to expand along with power generating capacity and the grid. Once people realize that they can own an EV without any significant changes to their lifestyle or budget, they will buy them.
It’s also noteworthy that California has by far the highest EV ownership of any state in the U.S. Norway is another good example of how the government can sheperd change in public buying behavior. No one there is jumping up and down with protests. It’s one of the happiest countries on earth.
On VTOLS, doesn’t the ability to take off and land vertically kind of make the car part of flying cars irrelevant? All of those flying car designs are such a huge compromise, much like the amphibious cars. They are not good cars and they are not good boats. Same for the flying cars. Just get a VTOL and you can get within walking distance of your destination, or call for a Sky Uber if you don’t have the coin to own your own VTOL.
In addition, good luck getting that thing into a parking garage. The article does not state how long it is, but it sure looks significantly longer than a Suburban. Owners will have to park where the semi trucks park. So much for convenience!
@GM veteran – Really? Like booze production stopped during prohibition.
When costs come down, and EVs have a reasonable range (to me a good days drive – maybe 700-800 miles) it would make sense for a primary vehicle. Of course if one could afford multiple vehicles, an EV for short trips would be fine and very economical.
As for incandescent bulb ban, stupid. Don’t get me wrong, I love the energy savings I get with LED bulbs used for lighting. I’m not so sure I believe the life claims and infant mortality on LEDs seems very poor, I’d say 10% last less than a year. And they won’t keep the chicks warm or work in an Easy Bake Oven.
The problem with our government is things are not done “thoughtfully”.
Can you still get 15 watt incandescent bulbs? If so, I should get a couple for mostly “decorative” lamps I have with frosted glass chimneys. The lowest wattage LED or CFL bulbs are too bright for the look I want.
There are still tens of millions of us kept out of the BEV market, for lack of home charging at condos and apartments.
The electric VTOL things are just a fun way for companies to spend extra money. The will be expensive, very short range/duration, too noisy and dangerous to take off and land from “just anywhere.” Also, whatever load limit they have would need to be strictly adhered to, but people wouldn’t do that.
#1. ICE (gasoline and diesel) emissions are choking the country, even California which has the largest percentage of BEV registrations. If the market is, as you say, “customer driven” at what point does that customer do the right thing to be part of the solution for cleaner air? This is why government legislation to phase-out ICE vehicles was needed in California and is being adopted in many other states.
What a great show, Autoline Team.
Renault/Valeo: rare earth metals-free EV motors is a great development.
Good when a gasoline/Diesel company installs may EV chargers in the country. That way customers and BP can benefit from the convenience stores at the current fuel stations. In Western Europe the quality of the food at fuel stations is very good.
XPeng: very innovative company. You won’t see me in a VTOL but good for other individuals and businesses.
Have a great weekend.
DanaPointJohn, how do you put your picture there?
Hey Kit…no idea how I did that! Maybe Seamus can shed some light on how to edit our accounts!
Kit: it comes with the Premium Subscription Package 🙂
GM Veteran , Banning new ICE will stop new sales but people will hold their old cars longer or find used ones to buy . Which is counter productive if you want to clean the air. . What will happen they will ban new ICE and when that fails to get the results they will start phasing out older ICE until none remain. Forcing everyone into their nice one size fits all box that they can control any way they want. there is a reason they are trying get rid of gas stoves oil burning heaters . You don’t do as they say they cut you off until you bend your knee to them. That’s the philosophy behind the carbon credit digital currency agenda.
I’m not exactly sure either. I would guess that his picture is linked to the account he’s using, but I can look into it.
@XA351GT: that is a lot of speculation on your part. And conspiracy thinking about “the government” being after “us”. Leave Fantasy Island for the real world, life is better here.
What a fun week of autoline,cheers
@GM Veteran, whether someone wants an electric car, a hybrid or a ICE vehicle, they are the ones making the payment. As far as Norway being happy good for them, but that doesn’t mean anything to me as to what kind of vehicle I drive. They are a pretty much a socialist country so
Just imagine how happy they would be if they had more freedoms. I buy a vehicle based on what I want to pay, styling and reliability not necessarily in that order. Saving the environment isn’t on my list. Until gasoline gets to $5.00 a gallon and stays there, I don’t care about the gas mileage.
Until I can recharge a BEV in the same amount of time that it takes to fill my tank with gasoline I will not be interested in an electric vehicle and most of the people I know and associate with feel the same way.
Danny T., part of why Norway is happy is a result of socialism. They have universal health care, affordable child care, and a generally strong social safety net. Then, there is vacation time for everyone. With that, the people tend to be happy, in spite of the long, cold winters.
“Cruise . . . pausing its driverless operations in order to “rebuild public trust.” ” They should put Dan O’Dowd in charge. A notorious critic of Tesla Autopilot and Full Self Driving, this self-described software expert should be given the chance to rescue Cruise.
And ICE cars are still around in Norway, for those who want them.
https://i0.wp.com/www.norwegianamerican.com/wp-content/uploads/2012/09/black-car2.jpg?ssl=1
Wim Van Acker
I’ve had to get new conspiracy theories all my old ones have come true. Keep your eyes open it’s happening under your nose.
part of why Norway is happy is a result of socialism.
okay comrade
Actually, maybe most of why Norway is happy is socialism.
Re Norway. What does happiness got to do with socialism.? Norwegians have every freedom that Americans have. The tax rate unfortunately is very high and the Government unlike America is not up to its neck in debt. I’ve been there and and the temperature in the summer is not in the 90’s.
Kit,
Retails sales in Michigan of incandescent bulbs stopped in August. I don’t know about Indiana, but I you can still find on internet. I haven’t tried so I don’t know if they restrict delivery to states that have stopped sales.
https://www.1000bulbs.com/product/177032/NORM-10000.html?gclid=Cj0KCQjwhfipBhCqARIsAH9msbk1Pktg08nxAcXqYwGCDATCi4VJd0trI2ZMySPxpEr16aGI6ICwI6kaAuNJEALw_wcB
Robert Petrach, thanks for info. I’d like to have one or two “spare” 15 watt bulbs, which I might not ever need. Other than those small ones, I’d rather use LED anyway, now that you can get “warmer” color temperature. I now have mostly CFLs, which I won’t replace if they don’t fail.
I find that there are now 15 watt equivalent LED bulbs. When I last looked a few years ago, those didn’t exist.
Perhaps Tesla sales and profit margins might be instructive about why the others are having a “bad EV sales” day.
Thanks to Google, found Tesla gross profits (see web link)
2020 – $6.64 B
2021 – $13.61 B
2022 – $20.85 B
2023 – $19.00 B (past 12 months to Sept 30, 2023)
In two months, Tesla will have the full 2023 year production and profits by adding the Q4 results. The 2023 Q4 will have the reworked and improved production lines. It will feature the updated Model 3, more electric semitrailer trucks, EV charger sales, and continuing product improvements.
In contrast, reports are the other EV makers with perhaps the exception of BYD, lose money with every EV they make. After the early adopters, they are missing customers for unsold inventory of overpriced, under performing, loss-leader, EVs.
The irony is the EV tax credits for new and used EVs is a great sales incentive for Teslas profitable products.
Tesla’s quarterly Shareholder Deck is worth looking into for anyone interested in concise updates on the company’s current state and future focus.
https://ir.tesla.com/#quarterly-disclosure
Nissan recently intro’d an attractive, compact EV pickup study that shows what Tesla could have created based largely on the 3/Y platform’s underpinnings. With that showcar’s snub nose, and design cues from the Semi. As it is, the Cybertruck doesn’t leverage the outstanding, global sales success of above two models. And the North American market for smaller pickups is underserved, while not requiring outsize battery packs for adequate range.
For the Detroit 3, I have to wonder what plan B is if sales of their gargantuan trucks and SUVs start to shrink? It’s happened before, but now they’re even more dependent on those vehicles. Powerful hybrids would be something of a hedge against higher gas prices, while ramping up the supply of batteries – which would also benefit attractive EVs like the Lyriq and Bolt.
Regarding Bob Wilson’s figures, look up page 16.
Wim van Acker I don’t think that XA351GT concerns are exactly conspiracies. However, I do believe that most people who have this feeling about our government are misdirecting their trust. When in fact they are just a tool to the folks that really run things. The very elite wealthy folks and corporations that can afford to lobby and contribute to congress to get the laws and regulations passed that support their agenda. The 15 min cities and one world currency doesn’t benefit our government as much as it would those that own the banks and financial institutions. Sounds like all kinds of conspiracies. But when it really comes down to it everyone has a price, and they will approve the bills they make them rich and keep them elected. So, I feel they participate but are certainly not the driver behind many of these changes.
I said a long time ago that EV sales would hit a peak and taper off early. After the first adopters got theirs and the ones with expendable income that can afford to “do their part” all buy an EV then the real task starts with appealing to the masses. The US is unique in that our country has had a passion for driving and a great interstate highway system to do just that. Norway is 30 times smaller than the US, Germany is half the size of Texas. So, comparing what works in those countries isnt really comparing apples to apples. I think the environmentalists need to really start attacking other forms of pollution. Clean up our industries, factories, Power plants, Ships and Jets, If the auto industry gets to a 50% EV adoption and ICE’s continue to reduce emissions then I believe that would be a good balance that would work well in this country. Mandating a change isn’t forward thinking. Its pushing a product and doesn’t take into consideration the many instances where an EV doesn’t work. But its always easier to place a broad mandate without figuring out the issues where it doesn’t work because any break in the mandate allows for a loophole and will be used to its full advantage. Not only that but I feel that someday soon we may find out that EVs are just not so great for the environment. Maybe clean up air quality while creating another problem with disposal into landfills and strip mining. But time will make that more clear.
Kit I would imagine an easy fix to prevent VTOL’s from being overloaded would be to install strain gages in the landing gear. If the vehicle is over-weight before take-off, it shouldn’t even start. Because yes, I’m sure there is a safety factor in there and people would certainly overload them if they can. As stupid as that seems. I agree though that trying to make a flying car is silly. You end up with a vehicle that can do both but isn’t very good at either task. Flying requires a light vehicle. Driving requires heavy crash supports and a big battery. Those things don’t go together really well. I still feel the personal VTOL is a crazy pursuit anyway. Even if they can get the price down below 6 figures the TO and landing areas need to be restricted and regulated. So not much different than a Helo a person isnt going to be able to fly to work or school. I look at them as just being EV helo’s.
People in Europe have a passion for driving, maybe more than in the US Most of the worlds most serious sports cars come from Europe. Anyway, comparing the US to one country in Europe is not a valid comparison. You can drive from Amsterdam to Sorrento, about the same distance as my trips between Indiana and Florida, but instead of going through 5 states, you are in 4 or 5 countries.
maybe most of why Norway is happy is socialism
a declarative platitude containing no substance