AD #3919 – EU Market Sinking, But Tesla Has Blowout; Hyundai Aims for Fully Automated Assembly; China Deports VW Exec for Smoking Pot in Thailand

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

EU MARKET SINKING, TESLA HAS BLOWOUT MONTH
The European auto industry is going through a rough time and the latest sales numbers are not encouraging. Automakers sold 1.1 million vehicles in September, down 4% from last year. But EVs did relatively well, and represent the fastest growing segment in the market. Customers registered over 213,000 EVs, up nearly 14%. Hybrids did very well too, with over 377,000 registered, up over 12%. In fact, hybrids outsold pure ICE vehicles which were down almost 19%, while diesels dropped nearly 24%, and PHEVs fell nearly 12%. When you go automaker by automaker, the numbers are all over the map. VW’s Group sales were essentially flat, while Stellantis saw an alarming 26% drop. The Hyundai Group was down 5%, while Toyota was up 5%. Mercedes fell 3% while BMW was up 5%. Tesla had a blowout month, with registrations up a whopping 31%. And one last tidbit we pulled out of the numbers: Chinese automaker SAIC outsold Mazda, JLR and Honda.

GM POSTS STRONG NORTH AMERICAN EARNINGS, LOSES MONEY EVERYWHERE ELSE
GM reported its third quarter earnings, and while the numbers look good overall, it’s all thanks to the company’s pickups and SUVs in the North American market. It lost money just about everywhere else. Globally, GM sold nearly 1.5 million vehicles in the last three months and that was down about 9%. But despite the drop in sales, GM’s revenue hit $48.7 billion, up a strong 10% from a year ago. Its adjusted earnings before interest and taxes, or EBIT, came in at $4.1 billion, up a strong 15.5%. Free cash flow shot up nearly 19% to $5.8 billion. But net income of $3 billion was virtually unchanged. While those are decent numbers, GM continues to run into headwinds with four of its business units. In China it lost $137 million, versus a $192 million profit a year ago. GM International, which includes all the markets where the company operates outside of North America and China posted a small profit of only $42 million, down 88% from last year. GM Finance earned $687 million, but that was down more than 7%. And it lost $435 million on Cruise, its autonomous car unit, but that was actually a 45% improvement over Q3 of 2023. Overall, Wall Street likes the numbers, especially the big improvements in EBIT and free cash flow, and the fact that GM raised its guidance for the rest of the year.

HYUNDAI INDIA SPUTTERS AFTER IPO
Hyundai’s initial public offering for its business in India last week was the largest IPO in the nation’s history, raising $3.3 billion. That gave Hyundai Motor India a market cap of $19 billion. But its shares slid more than 7% in its debut in Mumbai today because of poor interest from retail investors due to slowing car demand in India. And while that’s not great news for Hyundai, it is common for stocks to decline after an IPO.

CHANGAN TARGETS 5 MILLION CARS/YEAR
Chinese automaker Changan sold more than 2.5 million vehicles globally last year, putting it just outside the top ten in sales. But it expects to continue to grow. The company’s chairman says it wants to sell 5 million vehicles annually by 2030 with 30% of its sales coming from overseas markets. If it hits that target, that could make Changan larger than Ford and Honda, which sold a bit more than 4 million vehicles each last year.

HYUNDAI AIMS FOR FULLY AUTOMATED ASSEMBLY
I’m starting to wonder how long it will be until automakers don’t really need humans to build cars anymore. The Hyundai Group is showing off a number of technologies that get us closer to fully automated assembly. Its Autonomous Mobile Robots are like the Automated Guided Vehicles you might see in existing plants today, but they have integrated software that allows them to control the wheels independently so they can move in any direction, instead of just forward and straight. It also means they can carry heavier loads around curves. The next piece of tech is a mouthful, Atypical Flexible Parts Automatic Assembly, but it says it’s essential for using humanoid robots in manufacturing. It’s a program that recognizes irregular parts, like hoses and wires, using AI vision and automatically calculates the picking up point and then issues that command to the robot. Another part called the Infinite Multi-Axis Holding Fixture will automatically input a part’s information and adjust the pickup points so a single machine can help assemble multiple parts of a car, like the doors, hood and wheels. And the Group is even looking at ways to automate aircraft or VTOL manufacturing and using SPOT! The robot dog for factory safety inspections and equipment checks.

FORD UPDATES MACH-E, DROPS PRICE
Ford is introducing new tech to the Mustang Mach-E and slashing its starting price. The all-electric SUV will now come with a heat pump for the first time. It helps keep the battery pack at an optimal operating temperature, which improves the battery’s efficiency while charging and in real hot and cold weather. The Mach-E will also be the first Ford or Lincoln vehicle to get the latest version of BlueCruise, its hands-free driving system. Version 1.5 will now automatically change lanes if it has a clear path and will put a little visual on the display that it’s making the move and why. Ford says it will tell us later which other vehicles get BlueCruise 1.5. The updated Mach-E will go on sale early next year with a starting price of $36,500, which is $3,500 cheaper than before.

UK PUBLIC CHARGING MORE EXPENSIVE THAN PETROL
One of the advantages of an electric vehicle is supposed to be lower operating costs. But using public charging can throw that math off. According to a new study from ZapMap, operating a BEV in the UK using public chargers is twice as expensive as driving a gas- or diesel-powered car. That’s because it can cost just over $1.00 per kWh to use a public fast charger. That means a BEV can cost up to 31 cents per mile, while a diesel costs 16 cents and gas cars cost 19 cents. Even using a slower charger, it still costs about 22 cents more per mile to operate an EV. Public EV charging prices in the UK have risen 5% in the past year, while at the same time prices at the pump have fallen.

BYD SHARK IN BRAZIL IS $27,000 HIGHER THAN HILUX, RANGER, S10
BYD sees big opportunities to sell its PHEV pickup, the Shark, in Brazil. It’s aiming the truck at agricultural buyers and is pricing it well above the Toyota Hilux, Ford Ranger and Chevrolet S10, which start around $39,000. The Shark starts at $66,500, even though the exact same truck sells in Mexico for $13,000 less. So BYD is clearly positioning the Shark as a premium truck at a premium price. For that money customers get 436 horsepower, a solar charging kit, a portable 3.5 kWh charger and free insurance for a year. BYD has set a modest sales target of 10,000 to 15,000 Sharks a year in Brazil. But it has big plans for the country and is building an assembly plant that is scheduled to start production in just a matter of months. Plus, the Shark will also be the first PHEV truck introduced into Australia at the end of this month.

CHINA DEPORTS VW EXEC FOR SMOKING POT IN THAILAND
China doesn’t joke around when it comes to weed. VW’s chief marketing officer and head of product strategy for China, Jochen Sengpiehl, tested positive for cannabis during a mandated customs procedure after returning from vacation in Thailand. While marijuana is decriminalized in Thailand and Jochen’s native Germany, Chinese officials held him for 10 days before deporting him from the country. And it doesn’t sound like it’s something you can apologize for or pay your way out of. China’s president ordered him never to return. And just for a little reference, WardsAuto says Sengpiehl is the guy who created VW’s ‘Das Auto’ marketing slogan.

But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.