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Runtime: 12:02
0:00 Stellantis Ready to Ease Up on EV Investments
0:50 EVs To Play Big Role In 2024 Elections
1:39 Thursday Is Red Letter Day for Tesla
2:39 VW Outsources Scout Development to Magna
4:13 VW To Cut Jobs & Costs
4:53 BYD Makes Final List for EU Car of The Year
5:47 Canada Worried About Chinese Suppliers in Mexico
6:49 Stellantis Remanufactures Used Parts
7:40 Paris Wants Big Vehicles Gone
8:28 Porsche Panamera’s Trick Suspension
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
STELLANTIS READY TO EASE UP ON EV INVESTMENTS
It looks like electric cars could play a big role in U.S. and European elections. The CEO of Stellantis, Carlos Tavares, says the company already has contingency plans in case of a change next year in the Administration in the U.S. and in the European Parliament. Conservatives on both sides of the Atlantic are staking out anti-EV positions as part of their platform. And if they should win next year, Tavares wants Stellantis to be ready to ease up on its EV investments. For the time being, however, he’s still committed to 100% EVs in Europe, and 50% in the U.S. by the end of the decade.
EVs TO PLAY BIG ROLE IN 2024 ELECTIONS
Reuters points out that in the U.S., four swing states have received an outsized amount of the investment going into electric vehicles and battery plants. Georgia, Nevada, Michigan and Arizona got $48 billion in EV investment, or one-third of the total in the U.S. Democrats and their environmental allies are using that to emphasize how many American jobs that investment created, while Republicans are attacking it as government overreach that is only going to help China. That means it’s going to be up to voters to decide which side is right. And who knew that an automotive technology was going to play such a big role in American and European politics?
THURSDAY IS RED LETTER DAY FOR TESLA
But one thing’s for sure. Tesla is not backing off its commitment to EVs and this Thursday is a red-letter day for Tesla. It’s going to officially deliver the first Cybertrucks to customers and that’s when we’re likely going to find out what the price is. When Elon Musk first unveiled the truck in 2019 he said the base version would cost $40,000. Four years later, even he says specs and pricing will be different. For one thing, the Cybertruck has been something of a nightmare for Tesla to develop. Musk semi-joked that they dug their own grave with the way they designed it. The Wall Street Journal reports that Tesla ran into all kinds of problems working with the stainless steel for the body. Specifically, it had problems rolling the steel flat and trying to form it. So if development costs came in high, the price will probably reflect that. We’ll know for sure in just three more days.
VW OUTSOURCES SCOUT DEVELOPMENT TO MAGNA
Speaking of developing EVs, Volkswagen is not going to develop the Scout SUV and pickup in-house. Instead, it is turning to Magna-Steyr to do the development work. An Austrian newspaper says that VW will pay Magna €450 million to develop the electric off-road vehicles which are supposed to go into production in late 2026. Early in the project, Magna was in the running to assemble the vehicles, but VW decided to build its own brand-new assembly plant in South Carolina. The newspaper also reports that Audi will use that platform to develop its own hard-core off-road SUV to compete with the Mercedes G-Wagon. VW and Magna Styer have a history of collaboration. Magna developed an off-road version of the VW Golf and it also productionized the design of the Audi TT.
VW TO CUT JOBS & COSTS
Volkswagen says it needs to cut costs by 10 billion euros or about $11 billion and it’s ready to cut jobs to get there. The head of the Volkswagen brand, Thomas Schaefer, warned that the VW brand is no longer competitive because of high costs and low productivity. So he’s in talks with VW’s works council to reduce headcount at the company. That’s not going to be easy. Laying off people in Europe is hard to do and labor representatives on the board will fight against it. VW says it will cut costs in other areas as well and will reveal more details by the end of the year.
BYD MAKES FINAL LIST FOR EU CAR OF THE YEAR
For the first time a Chinese brand has made the final list for European Car of the Year. The BYD Seal, an all-electric sedan, is going up against the BMW 5-Series, Kia EV9, Peugeot 3008, Renault Scenic, Toyota C-HR and Volvo EX30 for the 2024 award, which will be announced at the Geneva auto show in late February. Those 7 vehicles were chosen from a list of 28 models by 59 journalists in 22 countries. And if you really wanted to get technical, you could consider the Volvo as a Chinese model as well. The EX30 is based on a platform from Volvo’s Chinese parent company Geely and it’s only made in China right now. However, the EX30 is scheduled to go into production in Belgium sometime in 2025.
CANADA WORRIED ABOUT CHINESE SUPPLIERS IN MEXICO
Auto suppliers are voicing their concern over Chinese companies setting up shop in Mexico. The president of Canada’s Automotive Parts Manufacturers Association, Flavio Volpe, says Chinese suppliers will use Mexico as a back-door way to export parts to the U.S. and Canada. He says Chinese suppliers will displace North American ones because they’ll be able to undercut them when bidding on new contracts. Earlier this month, Volpe met with the American Chamber of Commerce and officials from the U.S. State, Commerce, Energy and Interior Departments to raise the issue. And he also had separate meetings with members of Congress. And shortly after that visit a group of bipartisan U.S. lawmakers sent a letter to the U.S. Trade Representative, urging her to boost the 25% tariff on Chinese made vehicles and to look into ways to prevent Chinese companies from exporting into the U.S. from Mexico.
STELLANTIS REMANUFACTURES USED PARTS
Stellantis plans to make billions fixing up and selling old cars and parts. It just opened its first Circular Economy Hub in Italy where it will take in old cars and parts and either fix them, reuse them or recycle them. That includes fixing an entire vehicle, which could use some of those old or remanufactured parts. Or it could add a fresh coat of paint if it thinks it’s worth it. Stellantis will then resell the cars and parts to customers. It says by 2025 it expects to manage over 50,000 remanufactured parts and jump that to 150,000 by 2030. By that same time, it forecasts its Circular Economy Hubs will be generating more than 2 billion euros of revenue.
PARIS WANTS BIG VEHICLES GONE
Officials in Paris want to force big vehicles out of the city. Specifically, they want to reduce the number of SUVs. So, they want to hike up parking fees, and they’re even going to hold a citizen’s vote on it next year. Specifically, they want to boost parking fees for ICE vehicles that weigh more than 3,527 pounds and EVs that weigh more than 4,409 pounds. To figure out a car’s weight, scanners will be used to scan license plates, which will be used to get the vehicle’s info. But big SUVs and EVs aren’t the only vehicles that Paris wants to get rid of. It’s gradually banning diesel cars and just a few months back it banned all rental scooters.
PORSCHE PANAMERA’S TRICK SUSPENSION
The suspension system in the refreshed Porsche Panamera sounds pretty amazing. It’s available with a new Active Ride suspension system that pairs two-valve shock absorbers with an electrically operated hydraulic pump. Porsche says it can pull down the front end when accelerating or the rear when braking and lean into turns like a motorcycle, so that the car stays flat at all times. It will even raise the suspension when you come to a stop so getting out is easier. Beyond the trick new suspension system, the new Panamera features upgrades to the powertrain as well. The base 2.9L turbo V6 now makes 260 kW or roughly 350 horsepower and will do 0-60 as quick as 4.7 seconds with AWD. Also available is a plug-in hybrid that combines a 4.0L twin-turbo V8 with an electric motor that come together for 500 kW or about 670 horsepower. This model will do 0-60 in 3 seconds and has a bigger nearly 26 kWh battery pack that provides up to 91 kilometers or 56 miles of range. But Porsche says it will eventually launch 4 E-Hybrid models, including at least one version with even more power. However, it’s no longer going to offer the slightly raised Sport Turismo Panamera because of poor sales. The new Panamera starts hitting dealer showrooms in the Spring of next year with a starting price around $100,000.
But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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EVs and politics – hope that everyone realizes this automotive technology is economically unavoidable, it will happen regardless of what elected officials decide to incentivize. With that in mind, the question is whether we want to be a global technical leader in the next decade or whether we are ok with repeating what happened in the microchip industry, i.e. have the US try and catch up once others are far ahead.
Maybe people who wanted a Panamera “sport turismo” wagon didn’t want mandatory 4wd and a lift kit. Those people buy Cayennes.
I would have thought if you wanted only small cars in Paris, you could repaint parking lines closer together and heavily fine the vehicles that are not parked inside them. You could also lower the height of parking garage entrances, widen sidewalks and generally make it really annoying to drive a larger vehicle in the city. People would still have the choice so it’s not like you banned them.
I don’t think the officials in Paris have fully thought thru their large vehicle penalty scheme. Their scheme is based on weight, but have they accounted for the fact that BEVs weigh a lot more than ICE vehicles?
Drew, it appears that the Paris scheme has very much accounted for BEVs weighing more. From today’s show, “they want to boost parking fees for ICE vehicles that weigh more than 3,527 pounds and EVs that weigh more than 4,409 pounds.”
Cyber truck. $59,995. Plus shipping and handling
Sorry Kit… I was scan reading in an interrupted manner.
Cybertruck under $80k to qualify for fed tax credit?
Sry Drew. Some times I don’t it read it very well either.
Thomas Schaefer, warned that the VW brand is no longer competitive because of high costs and low productivity.
Hmmm, not hard to see that coming.
Albemarle — I think Paris politicians know that, if they did this, people would see this right away and there would be push back before it could be approved and there would be push back! Yet, if they just stick with the numbers and go by weight, how many people know how how much the vehicle weighs? By the time the average person knows what’s going on, their stuck paying a huge parking fee, for their portly…I mean ‘big boned’ SUV or BEV! Besides, reducing the size of parking spaces, wouldn’t make much of a difference, for the number of times if seen some of these big trucks and SUVs parked crooked and spilling into the the next space they’re mostly in!
Kit, Drew, Sean — Wouldn’t and unintended consequence of the Paris band of ICE and diesel vehicles, also mean that delivery vehicles, that are powered by those drive trains, would also be banned? How are businesses, then, suppose to get all their goods delivered and provide their services within Paris, if the vehicles they use are banned?! Will construction vehicles need special wavers to do work in the city?
VW dominated the European market back when cars, like Golfs and Polos dominated. Have they lost out as SUVs started taking over, as in North America? Yeah, their low productivity hurts too.
VW leadership is saying that the company is no longer competitive?! So, to right the ship, they are taking it it out on the workers! Isn’t it their job to see the shifts in the market and prepare the company and staff BEFORE the company finds itself in such a situation?! Yet, the employees have to take the hit for what appears to be bad management, yet they make the big bucks! Is it the fault of those employees that will be impacted, that software of the ID brand was sub-par, that the next gen, new and improved software took longer to come to market, or that the last CEO took his big salary and was given a golden parachute as he was walked out the door a few years ago? Yet, the people who had nothing to do with those decisions, are going to have to be the ‘team players’, as the big dollar leaders of the company let them go, to save their own jobs! Madness!
wmb – Yes, top management is overpaid. Yes, technology glitches with the new gen software is costly. But, do not underestimate the labor cost disadvantage vs. Korea and China. Between all the personal time off (holidays, vacation, family leave, etc.), very generous other benefits, and relatively high hourly wages, European autoworkers are going to need a lot of EU/EC protective regulations in order to stave off the Asian threat.
WMB, unlike in the US, places in Europe, including Paris, enforce proper parking, including not parking one big vehicle in two parking places.
VW may have mis-read the shift of vehicle types, and may be having trouble with their software, but I wouldn’t count them out.
Drew, Kit — No, I wouldn’t count VW out and I would agree that pay and benefits of hourly workers are great. Yet, let’s not pretend that the perks, salary and benefits of those of upper management and leadership waaaay better, than what the hourly workers get! Don’t get me wrong, I believe that hourly employees and leadership are deserving of ever penny that paid. My only point is that leaderships Job is to read the tea leaves, watch the markets, watch and prepare for trends and to be one or two steps ahead of major change. This is why that make the Big Buck, right! When they can’t do that and the only way to right the ship is the turn on their employees, who are following THEIR direction, then they’re not doing the job they are given big perks, salary and benefits to do! Now, big major changes can catch anyone by surprise, but I argue that VW is the one responsible for the biggest change in the industry. While Tesla may have shown that BEVs are ready for prime time, in was VWs choice to go all electric that could other big legacy OEMs by surprise! While their decision came out of diesel gate, their move demand other legacy OEMs to keep pace and compete with them AND toughening ICE Legislation! Now VW is saying they’re now competitive and they must cut hourly jobs to get back on track! I have no doubt that VW will bump back, but how is this current move fair to their hourly worker, for leadership’s bad decisions?!
It is not like people are rolling around in Suburbans in Paris. Apparently Paris feels any SUV larger than a Honda CRV is a “big” vehicle. Of course you can still drive your Camry/Accord there according to Paris. That is technically larger than a CRV so it seems this rule is less about foot print and more about something else. I think that this “rule” is aimed at those who are buying large BEVs. The Model Y dual motor long range for instance will not meet the threshold but the poverty spec Model Y will. No variant of a Model X/S will meet the threshold that they have set. So they want people to drive poverty spec small BEVs. How very Paris of them.
The problem is that these poverty spec vehicles will not be driven high mileage because of range/charge anxiety. That makes an ICE/Hybrid powered CRV that can be driven all over the place and is cheaper overall more environmentally friendly than a poverty spec Model Y which will not be driven long distances. The CRV and RAV4 are about to explode in sales volume in Paris. I don’t think that they intended that, but that is what will happen as a result of their policy.
The thing Paris needs, other than fewer cars, is shorter and narrower ones that fit in smaller parking spaces. I’ve been in Paris twice, and didn’t drive. I used their great subway system, and a taxi once, after the subway had closed at night.
MERKUR: “Of course you can still drive your Camry/Accord there according to Paris. That is technically larger than a CRV so it seems this rule is less about foot print and more about something else.”
In that case, maybe efficiency is part of the reason they care less about CamCords than CRVs and RAV4s. Of course, the big difference in mpg between a CUV and a car with the same powertrain is in highway driving, which most cars in Paris wouldn’t see much of.
wmb I agree. Management needs to be driving the ship and when they fail to steer it in the right direction maybe the board needs to look at some replacements.
Roger; “hope that everyone realizes this automotive technology is economically unavoidable” Sure it is! As the internal combustion engine grew in HP and ruled the roads and the muscle car era was in full swing back in the 60’s and 70’s one automaker decided to go completely backward with their design and unlike so many other vehicles at the time offered a very minimalistic basic retro design that was powered by an air-cooled engine. The VW bug was a huge seller and avoided current technology advancements. An automaker could do the same today and likely will. EV’s are not the future as a complete replacement for the ICE anytime soon. As much as politicians and environmental groups would like to see that shift happen in the next 12 years, we are not ready. We will not be ready either. There will be a period of balance and managing transportation with a combination of ICE/EV and hybrid models that will likely push into the next 20 years. I don’t think anyone will be left behind by not building a bunch of EV’s they cannot sell. I also believe the next US administration will start to ease this EV push even if it’s just a little but push it with a more sensible approach.