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Runtime: 10:18
0:00 Toyota Tokyo Auto Show Reveals
1:54 Red Sea Ship Attacks Disrupt Auto Production
2:37 Tesla Berlin Will Boost Germany’s Car Production
3:14 EU Launches Investigation into Chinese EVs
4:36 Ford Testing Parts Made from Olive Trees
5:20 Stellantis Invests in Sodium-Ion Battery Maker
5:56 NIO Signs More Battery Swapping Deals
6:31 REE First to Receive Full-By-Wire U.S. Certification
7:18 Hertz to Sell Off Part of Its EV Fleet
8:01 Detroit Auto Show Moves Back to January
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
TOYOTA TOKYO AUTO SHOW REVEALS
Toyota’s former president and CEO and current Chairman Akio Toyoda loves gas-burning engines. But with the shift to electrification there’s cases where engine-related suppliers can’t borrow money from a bank. He says that shouldn’t happen and wants to do something about it. So, Akio made a proposal to current president and CEO Koji Sato and other members of management to start a project to promote engine development and refine technology. They agreed and much of what we’re seeing from Toyota at the Tokyo auto show, which just kicked off, is a reflection of its desire to offer a wide range of powertrains. The most exciting example is the new GR Yaris. The car’s turbocharged 1.6L 3-cylinder engine already made an impressive 268 horsepower but that’s been boosted even more to 300 horsepower. It also has more torque and gets a newly developed 8-speed automatic transmission. The last highlight of the GR Yaris is a new interior that’s much more driver focused and the dash looks like something you’d find in a race car. Other vehicles on display include a performance concept version of the Lexus LBX, which has a toned-down version of the GR Yaris’ engine; an F Sport Performance Lexus RZ450e, which will be limited to 100 examples in Japan and features a cornucopia of wings, spoilers and diffusers; it showed an off-road concept version of the new Lexus GX that’s just about to go on sale; and lastly is a GR version of the new Toyota Century, which almost looks like a Bentley or Rolls-Royce SUV.
RED SEA SHIP ATTACKS DISRUPT AUTO PRODUCTION
Attacks on ships containing auto parts in the Red Sea by militant groups is disrupting production for several automakers. Tesla announced it’s suspending most production at its Berlin plant for about two weeks at the end of the month because of a shortage of components. Volvo announced it’s halting production for three days next week at its plant in Belgium due to the situation. And while Volkswagen says it doesn’t expect “significant” production delays, it says it’s “monitoring the situation closely.” The automakers are being forced to reroute the ships to avoid being attacked, which is causing delays and a shortage of parts. And we won’t be surprised to see more automakers impacted by the situation.
TESLA BERLIN WILL BOOST GERMANY’S CAR PRODUCTION
But circling back to Tesla’s Berlin plant, it’s going to drive most of the growth in production capacity in Germany this decade. According to a study by consultant and market research firm Berylls, production in Germany will hit 5.2 million units by 2030, up from 4.3 million last year. Tesla is expected to help German capacity increase 2.5% per year by the end of the decade. The reason Tesla will account for much of the growth is because German automakers aren’t making plans to boost production in their home country.
EU LAUNCHES INVESTIGATION INTO CHINESE EVs
France has already started its own probe into Chinese EVs to see if they benefit too much from EU subsidies and now Reuters reports that investigators at the European Commission are doing the same. They’re going to visit with BYD, Geely and SAIC in the coming weeks, but the probe could last until the 4th quarter of this year. However, if they find the Chinese automakers are getting too much of an advantage since their EVs cost about 20% less than EU-made models, the Commission could slap tariffs on Chinese EVs. In the case of France, it’s using total production emissions to go after Chinese automakers and we could see the European Commission using that same criteria. Ultimately, they’re worried about Chinese EVs having a negative impact on European automakers. And right now, Chinese EV market share is expected to nearly double in the next two years, from about 8% today to 15% by the end of 2025.
FORD TESTING PARTS MADE FROM OLIVE TREES
Sustainability is a big focus of the auto industry and Ford is expanding its efforts in that area. Every year, 7 million tons of waste is created from pruning olive trees, so Ford engineers in Germany are testing parts made from that waste in vehicles. It’s producing prototype parts that consist of 40% olive tree waste, like twigs and branches, and 60% recycled polypropylene plastic. The mixture is heated and injection molded into several different components. Ford says early tests show the parts are durable and capable of being used in its cars. But no word yet on if these parts will make their way into Ford’s production vehicles.
STELLANTIS INVESTS IN SODIUM-ION BATTERY MAKER
Stellantis is placing its bets on several different battery technologies to help meet its EV sales goals. The automaker has already partnered with Factorial Energy on solid-state batteries and Lyten to develop lithium-sulfur ones. And now the automaker is investing in a French-based company called Tiamat that is developing sodium-ion batteries. Sodium-ion batteries are lower cost due to the abundance of sodium and they offer better performance in low temperatures and faster charging capability. However, they’re not nearly as energy dense as a lithium-ion battery.
NIO SIGNS MORE BATTERY SWAPPING DEALS
There’s going to be a lot more standardization in battery swapping. Meaning one battery will fit into a number of different vehicles. NIO just signed up two more automakers to help build out swapping business, which brings its total to four. On top of recent announcements with Geely and Changan, it also has deals with Chery and JAC to build models and stations as well as set battery swapping standards. NIO says it plans to build 1,000 more swapping stations this year, which would bring its total to over 3,000.
REE FIRST TO RECEIVE FULL-BY-WIRE U.S. CERTIFICATION
Israeli startup REE Automotive is the first company to receive U.S. certification for a fully-by-wire vehicle platform. REE’s architecture combines the motors, steering, suspension and brakes into one unit placed at the corners, which allows it to be used with a number of different body styles. By-wire means there is no mechanical connection between the control mechanisms; it’s all electronic. And it has started delivering one of those vehicles, the P7-C commercial van, to customers in the U.S. for testing purposes. And it will deliver more over the next few weeks. The vehicle qualifies for a federal tax credit of up to $40,000 and with state incentives, it could push the total to $100,000.
HERTZ TO SELL OFF PART OF ITS EV FLEET
Car rental company Hertz made all kinds of headlines when it announced it was going to buy a huge lineup of electric vehicles, but it’s been a bit of a disaster and now Hertz is going to sell off a third of its EV fleet and buy ICE vehicles instead. The company began selling EVs last month and hopes to offload 20,000 by the end of the year. Hertz has previously said it lost a lot of value in its EV fleet when automakers, mainly Tesla, began slashing prices and it said it’s EV maintenance and repair costs are much higher than ICE. Throw in a softening market for EVs and you can see why Hertz wants to unload some of its electrics.
DETROIT AUTO SHOW MOVES BACK TO JANUARY
Is the Detroit auto show trying to make itself irrelevant? It sure feels that way. After the 2019 show, organizers decided to move it to the summer, mostly due to competition with CES. But the 2020 Detroit show was canceled because of the pandemic. The following year it was kind of canceled again, but a make-shift show, called Motor Bella, was held in its place in September. Organizers stuck with the month of September for the last two years. But now they’re going back to January again. The 2025 Detroit auto show will take place on January 10-20, which is right on the heels of CES. If you’re a bit confused, don’t worry, we are too.
But that’s a wrap for this show and this week. Thanks for tuning in and I hope you have a great weekend.
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There’s nothing like a fun trip to Detroit in January, NOT. If they want to have the Detroit show in January, maybe they should relocate it to Cancun, or similar.
“Expenses related to collision and damage, primarily associated with EVs, remained high in the quarter, thereby supporting the company’s decision to initiate the material reduction in the EV fleet,” Hertz said. Could that be because a lot of the EVs are Teslas, and people crash them while trying to figure out how to change the temperature or turn on the wipers?
Regarding Ford using sustainable materials, I remember hearing that they tried using Spanish Moss for seat padding in Model Ts, but the seats “blew out” because Spanish Moss breathes and eats air, and kept growing while in the seat. I don’t know if that was true, but it made a good story.
Kit, for those of us living in SE Michigan, the January auto show is a highlight in an otherwise dismal time of year (grey skies).
Drew, yeah, if you are in the area, it would be something to do in the dreary time of year. I went once, I think in the ’90s, from Kokomo, IN. The drive wasn’t fun, with snow, etc., and it was cold walking from parking to the venue. I don’t know what the local vs non-local mix of attendees would be.
Glad to see the Detroit Auto Show (what they should call it) moving back to it’s original time of year, a lot of people used the MLK holiday to go and avoid the weekend crush of attendees. And as Drew alluded to, it is a treat in an otherwise crappy time of year and a nice place to be when the weather outside sucks. Now if they could just get the price of a big pretzel under control I would be all set ……
Yes, the walk from the parking structure to Cobo Hall can be brutal. Each year, I debated the merits of making the dash to Cobo while wearing a sweater… no coat… so I could be comfortable walking around the show and not annoyed by the long coat check lines. The sweater-only dash won the debate most years.
@Kit. Re Hertz/Tesla: “Hertz CEO Steven Scherr put the blame for the decision squarely on Tesla, The New York Times reported, saying that Teslas were the largest component of Hertz’s fleet, and the automaker’s sweeping price cuts of the past year had crushed the resale value of its used cars and damaged Hertz’s profit formula. Also, Scherr said, Tesla was unwilling to provide it with volume discounts on replacement parts, thereby making repairs expensive. “Tesla is new to the game,” Scherr said, implying that the company’s inexperience made it hard to work with.”
Yaris GR 1.6L producing 300 HP. That is pretty amazing.
I was turned off to the Detroit autoshow during my last visit due to the lack of prototypes and future programs. It basically was like going to the local dealerships all under one roof. So, as I tried to look at a few new vehicles people were allowing their kids to climb around inside and trying to get pictures with their 6 year old behind the wheel. While potential buyers wanting to sit behind the wheel and actually check out products, we had to wait for families to get just that right shot of little Jimmy, John and Stacy behind the wheel of a vehicle they have no intention of buying. The running around yelling a screaming was just too much. I was amazed at the reluctance or inability of parents to control their kids. I know makes me sound old, which I was like 50 then but I never would allow my kids to treat the show like it was a kids playland. So after dealing with all that I decided I was done. I had gone to about 15 shows in Detroit.
I typically parked on the Cobo Roof so the weather isn’t typically a big deal but the traffic can be especially if any other venue has something going on that day. Like a hockey or basketball game or concert. Plus with all the other shows debuting cars and availability online the hype of what’s new has sort of died.
Merv, that 300 hp 1.6L makes the 300 hp 2.0L in my Cayman look pretty weak, in specific power. I suspect that 1.6 needs seriously high octane gas to do that.
ArtG, yeah, those huge Tesla price cuts would have destroyed resale value of the Hertz cars, which they would normally keep only two or three years. As a rental, I might like an EV, if my total use would be short enough that I wouldn’t need to charge it during the rental. With a Tesla, as a rental, they should include a short introduction to the basics of how to control things.
I was not aware of REE until your blurb and took a look at their technology. Their distributed, independent, per wheel drive and suspensions remove wheel-to-wheel interconnections. It resembles a group of electric powered, shock absorber equipped, unicycles at each corner of the frame. I hope you do a deep dive, after hours program about them (ask Sandy Munro to visit them!)
REE is after the urban, box delivery truck market, 10,000 – 20,000 lbs, and could easily go after every utility trucks. This could range from delivery trucks to small busses, including school busses. They could make one heck of an RV especially if married with a canoe towed, EV with integrated range extender.
This is the first time my TSLA stock has competition.
The last year I went to the Detroit Autoshow, was the last year they had it in January. When my brother’s and I go, we usually go early, not long after they open, most times taking off from work, so there are not a large number of people at the show. Even then, there were a healthy contingent present. For the most part, we would be there a couple hours and would be leaving between noon and 1 o’clock and by then, the crowds would have rolled in! Yet, with more and more OEMs skipping Detroit, the lack of production ready concepts and seeing in the metal, future vehicles that are a few months away from going on sell, has kind of taken the wind out of my sail for the Detroit Autoshow, sadly. Part of the excitement of the Autoshow was seeing what was coming next and the ability to compare competing brands, all up close and personal! I had been a faithful Autoshow attendee for over 40 years, but not anymore!
I’ve been to the Indianapolis show a few times, probably most recently about 30 years ago. It was always just a way to see vehicles from most dealers in one place. They’d have maybe one concept or pre-production car, but not much. I went to the NYC show in 2013. They had the upcoming Lincoln MKZ, but no exotics, except a few on display behind barriers.