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Runtime: 8:22
0:00 Nio To Launch Low-Cost EVs in EU
1:01 France Removes Incentives for China EVs
1:49 As GM Cruise Pauses, Competitors Race Ahead
3:21 VW ID.7 Is Way Cheaper in China Than EU
4:17 Nippon Steel to Buy U.S. Steel
5:02 Sneak Peek of Nissan’s Upcoming Concept Cars
5:53 BAIC BJ60 Sure Looks Like a Jeep
7:35 AAH With Sandy Munro
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NIO TO LAUNCH LOW-COST EVs IN EU
Remember when nearly everyone was buying stock in EV startups at the beginning of 2022? Those days are long gone. Stock prices have crashed as investors worry about how those companies are burning through cash while generating very little income. But Chinese automaker NIO was just thrown a lifeline from an investment firm in Abu Dhabi. CYVN Holdings is buying $2.2 billion of the company’s stock. NIO, which is a pioneer in battery swapping, has gone after the higher end of the EV segment. In fact, it’s even developing an executive sedan to take on the BMW 7-series, Mercedes S-Class and Audi A7. But it’s also going to launch two other brands, called Firefly and Alps, that will sell low-cost family EVs in Europe starting next year.
FRANCE REMOVES INCENTIVES FOR CHINA EVs
And talk of more Chinese EVs coming to the EU is goading France into action. It isn’t waiting around for the bureaucrats at the European Union, instead France changed rules for which electric vehicles qualify for incentives to favor models produced in France and Europe over ones made in China. The subsidies now take into account CO2 emissions from producing vehicles and since China relies more heavily on coal to generate electricity, they no longer qualify. But it’s not just Chinese brands, Tesla Model 3s and Dacia Springs made in China, no longer qualify for the incentive, either, which is between 5 and 7 thousand euros.
AS GM CRUISE PAUSES, COMPETITORS RACE AHEAD
General Motors slammed on the brakes of its AV business unit, Cruise. It’s going through an internal review of the entire business after backlash from regulators, first responders and unions in California. But GM better get through that review pretty quickly, because its competition isn’t sitting still. Waymo added 45 miles of robotaxi service in Phoenix, Arizona last summer, bringing its total service area to 180 square miles. And last week it added curbside service to the Sky Harbour airport in Phoenix. This morning, May Mobility announced its offering robotaxi rides in Sun City, a giant retirement area in Arizona. In Beijing, Mercedes is testing Level 3 autonomous cars on highways, and IM Motors, which is part of SAIC, is seeking government permission to start selling Level 3 cars in China. Whoever cracks the code on selling robotaxi services profitably is probably going to become a cash machine. And right now, it looks like it’s coming down to a technological race between the US and China.
VW ID.7 IS WAY CHEAPER IN CHINA THAN EU
The Volkswagen ID.7 is nearly half the price in China than it is in Europe. In August, VW announced the all-electric sedan would start at just under 57,000 euros, which is about $62,000. But the version for China, called the ID.7 VIZZION, just went on sale for about $32,000 or a little over 29,000 euros. There are a few differences between the two models. The ID.7 VIZZION is built in China, both come standard with RWD, however the Chinese version has a less powerful motor (150kW vs. 210kW), but a slightly bigger battery (nearly 85 kWh vs 77 kWh), which provides about 20 kilometers or 12 miles more of range. So, I’m having a hard time seeing why there’s such a big price difference between the two.
NIPPON STEEL TO BUY U.S. STEEL
Japan’s biggest steel producer Nippon Steel is acquiring U.S. Steel. The deal is worth $14.9 billion, the largest ever purchase for Nippon Steel. This is really something of a historical milestone. In 1901 US Steel became the first company in the world to be valued at over $1 billion. But steel’s dominant role in today’s information economy is long gone. With Nippon Steel buying U.S. Steel, it looks like Cleveland-Cliffs may be the last remaining integrated steel maker that is American owned. Nippon wants to grow its business in the U.S. because demand is falling in Japan.
SNEAK PEEK OF NISSAN’S UPCOMING CONCEPT CARS
Nissan revealed its lineup for the Tokyo auto show, which kicks off in January right as CES is ending. One of the concepts that caught our eye is a disaster support vehicle based on the Nissan Caravan. We’ve seen these disaster support vehicles before, but what makes this one a little unique is that it uses portable generators that use old LEAF batteries, which is an actual product Nissan now sells on the market for a little under $1,200. The other concept that grabbed our attention is the March Customized Concept. This model is actually a 4th generation, which first came out in 2010, and Nissan wants to show how customers could upgrade their used cars. That’s something it also did at last year’s show with the Nissan Cube.
BAIC BJ60 SURE LOOKS LIKE A JEEP
We thought the days of Chinese copycats were over. But BAIC just introduced its BJ60 SUV in Dubai, and the front end looks like it was rolled right out of the Jeep design studios. While it doesn’t have a seven-slot grille, it looks like a Jeep. The BJ60 is an off-roader with features like on-demand four-wheel drive, diff locks and a crawl mode. BAIC has been significantly expanding overseas. It plans to enter several more markets in the Middle East and it’s selling vehicles in Mexico, South America and Europe, which are other regions where it will compete directly with Jeep.
AAH WITH SANDY MUNRO
Has there ever been a new product launch as controversial as the Tesla Cybertruck? Depending on the reviews, it’s either the most glorious thing that’s ever happened in the history of the universe, or it’s the ugliest, stupidest, most moronic product that’s ever been launched. So that sets the stage for Autoline After Hours on Thursday. We’ll have none other than Sandy Munro himself preaching the Cybertruck gospel, while Joe White from Reuters and Tu Le from Sino Auto Insights will weigh in with steely-eyed realism. You’re not going to miss this one.
And a programming note here. Thursday will be the last day of the year for Autoline. The crew is going to take a well-earned break and be back on January 3, when we have to hit the ground running to get ready for CES.
But that’s it for this show. Thanks for tuning in.
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Looking forward to Autoline Afterhours we’ll get some information on trends in the EV industry and who is going to run out of money first remembering many traditional OEMs are in debt up to their eyeballs.
I’m a Sandy fan but he’s too enamored with the CT, becoming biased. In my view many noteworthy innovations (48V, stamping process, casting, wiring, materials), but the polarizing design and minimalistic interior put me off big time, especially at this price point.
Sean- Maybe the ID7 sold in China is cheaper because they removed ABS some airbags sound deadening? Not sure what China requires but seems like it would have to be more than engine and battery difference.
BJ60 is absolutely a Jeep rip-off. Must be easy to be a lead designer in China, just flip through some images of what’s already out there that looks good and make a few tweaks and bam you’re done.
I agree with Roger that Sandy is pretty enamored with Tesla, some of which I can agree with. I also feel like Tesla is given a whole lot of benefit of the doubt and held to a lesser standard than other domestics, in many regards. The missed dates, missed price targets, missed delivery of what was promised was just given a pass. As for the Cyber Truck I think the actual sales will speak for themselves. Once the initial excitement wears off and they get a year to 18 months of production under their belt we will see where the real interest lies.
If no one has noticed the one thing everyone seems to be doing with EVs that was not the case for many years is these launches always start with the top-of-the-line models. So if you want to be first your gonna pay for it and in return you get the loaded version. Historically companies always launched with their base model then released the better engine the higher trims later. Personally, I think because they knew sales might not be on-fire so releasing the most expensive versions would take some of the blame of why sales didnt have them flying out the showroom. Plus they can cash in while they are hot. By time the base models are released everyone has lost interest and the sales numbers are just what they are. I suspect the same from CT. We already know sales will start slow for whatever reasons they have. In 18 months you wont have to ask, the sales will tell you how well the public accepts the CT.
The BJ60 looks like a Jeep from the front and a Mitsubishi Montero from the rear and some of its body panels.
Volkswagen ID7 prices: when comparing prices you have to take into account that taxes on new vehicles are very high in Europe. If you buy a German0made BMW 7 series in Munich you pay more than when you buy a German-made BMW 7 series in the U.S. The explanation for the lower price in the U.S.: taxes.
Wim- Thats assuming that Taxes was in the base price but I doubt anyone does that.
To me, the main, or only thing good about Tesla Models 3 and Y, compared to some of the competition, is that the powertrain is a little more efficient than most. I want a speedometer in front of me, wiper switch, radio volume knob, physical HVAC controls, turn signal stalk, etc., not an iPad to work everything on the car. If I planned to use an EV for long road trips, Tesla has, by far, the best charging system, but that will be available for other brands of cars in the future. Time will tell, but that might make all EVs even less desirable for road trips, as there may by waits for using the chargers along the interstates.
I suspect a lot of Sandy M.’s Tesla fanboydom has to do with the way Tesla’s are assembled, not how they are to live with.
Lambo, a lot of quotes of prices in the EU include the VAT, which is hidden in the base price, not listed separately, like sales tax in the US.
I tried to find information on safety standards in China, but couldn’t find anything current. I found that ABS and ESC were not mandatory in 2015, but couldn’t find anything about current regs. In 2015, apparently a lot of lower end Chinese cars and SUVs didn’t have ESC, so had a lot of rollovers. Most of the foreign brand vehicles had ABS and ESC.
Lambo, I think launching with top of the line models is connected to battery availability. It may be better now, but not so long ago, battery cell production would have been ramping up pretty slowly.
Incidentally, the only sensible reason for the VW ID.6’s very significant price difference has to be connected with the battery pack provenance / chemistry.
As for Cybertruck, the most important thing to me is that it is a very narrow, region-specific product. If it should turn into a mega-seller, that may not matter so much, but as I feared, Tesla’s Battery Day promises have not come to fruition, and hence, EV trucks will remain relatively marginal.
All the technological hoopla notwithstanding. Fascinating from an engineering perspective, but I’m not convinced there’s some big immediate competitive advantage there. Further down the line, with falling costs and better synergies, the innovations will likely matter more – and hence will also be more widely implemented across corporations and countries.
The BJ60 struck me as looking like something, but not a Jeep. I think is was Mitsubishi Montero, as wmb mentioned. I guess no front end looks like a Jeep to me without the 7 slot theme.
From what I can find, the Cybertruck is 87 inches wide without mirrors, even wider than an F-150, so must not be intended for a lot of international markets, or are they going to make multiple versions?
@Kit, Lambo: yes, our sales tax is not included and VAT is included in Europe. The rates are 19-25%, depending on the country.
Kit, I mean that the Cybertruck is of no global relevance. Compared to say the Model Y, the world’s hottest-selling EV and likely best-selling car of 2023 too, if the Toyota Corolla doesn’t manage to claim that space.
The BJ60 in the front quarter view had a ‘ting’ of Jeep, but when I saw it full frontal, not so much. So I’d give them a pass on the looks (versus copying Jeep); similar perhaps, copied, no.
As great as the Cybertruck is/will be, I think one of its greatest advantages, is that Tesla will be able to use some of the tech from its semi on it. This should help ease some of the CT’s production costs, as the semi is purchased in bigger numbers by private companies. That’s why it’s no surprise that the semi was introduced first and once it was up and running, then came the long awaited CT.
Sean W., yeah, I misunderstood your earlier comment about Cybertruck in international markets.
What I’m reading is that there won’t be an RHD version so, presumable, it won’t be going to Australia, where big vehicles are more common than in Europe. Maybe a few will go to the Middle East, and have Hellcat engines installed.
I don’t think the CT will be a volume seller. Ugly, poor build quality, does not do truck things well, and excruciatingly expensive. It may though. Either way it won’t be in my driveway. I need a truck for my trips to other states towing my cars. I need a truck that doesn’t require 45 minute charge stops every hour and need pull through locations. Turns out I like to actually get to my destinations.
I see Tesla just announced a 10% raise for the factory workers in Nevada.
Cybertruck will be a “lifestyle vehicle” for Tesla cult members with spare money. It will create a lot of business for vinyl wrap shops.
https://cybertruck.wrapmate.com/
Cybertruck will be a “lifestyle vehicle” for Tesla cult members with spare money. It will create a lot of business for vinyl wrap shops.
https://cybertruck.wrapmate.com/