AD #2402 – EPA Reverses Glider Truck Rule, Concours d’Elegance Highlights, Market for Passive ADAS About to Explode

On today’s show…the EPA reverses a decision that would have allowed big trucks to use old dirty engines…the aftermarket for advanced driver assistance systems is set to explode…and a new study shows that it will be hard for automakers to turn a profit with electric and autonomous vehicles. All that and more coming right up on Autoline Daily.

This is Autoline Daily the show for enthusiasts of the automotive industry.

EPA REVERSES GLIDER TRUCK RULE
Are you familiar with “gliders” that are used in the heavy trucking industry? They’re re-built trucks with refurbished bodies but don’t have a powertrain. Then, buyers can install re-built older engines. Back in 2015, the EPA mandated that gliders must meet current emission requirements but earlier this year, former EPA administrator Scott Pruitt, reversed the rule. The decision was criticized by environmental groups because of the excess pollution the gliders would create. And the big truck OEMs also don’t like gliders, because they’re a deliberate end-run around emission standards. But Andrew Wheeler, the acting EPA administrator says Pruitt acted improperly and has overturned the order. The agency says it will work with glider companies to make sure they aren’t hurt financially by the reversal, while protecting air quality.

BMW RAISES PRICES ON SUVs IN CHINA
Chinese buyers will soon be paying more for a couple BMW SUVs. Due to tariffs on American-made vehicles in China, the American-made BMW X5 and X6 models will see price hikes. The prices are expected to rise by 4 to 7 percent. While BMW says it “stands by free trade,” it also says China’s 40% tariff is too steep to ignore. But it does show that BMW is willing to absorb a large portion of the cost, at least for now.

PROFITS ON EVs AND AVs WON’T BE EASY FOR AUTOMAKERS
According to a study from AlixPartners, the near-future of electric and autonomous vehicles does not look good. The researchers say that the industry is pouring billions of dollars into EVs and autonomous vehicles before the technologies are cost-competitive in the market. This means that by 2022, many of the EVs scheduled to hit the market won’t be profitable. High systems costs, low volumes and intense competition will make it very hard to turn a profit in the electric vehicle market. And while $61 billion will be spent on autonomous technology, consumers are only willing to pay $2,300 extra for autonomous features, not the current industry cost of about $22,900 per vehicle. That leaves automakers with a tough choice. They can introduce unprofitable vehicles and ride out the storm until they turn a profit or they can stick with investing in ICE vehicles at the risk of falling behind the competition.

Still to come…a look at some of the classic vehicles from this weekend’s Concours of America show.

WEEKEND RACE RESULTS
In racing news over the weekend, Lewis Hamilton took his Mercedes to the winner’s circle at the Hungarian Grand Prix. He beat out the two Ferraris and now has a 24-point lead over Sebastian Vettel in the driver’s championship. At the IndyCar race in Mid-Ohio, Alexander Rossi’s gamble on a 2-stop pit strategy paid off with the win. He and his Andretti Autosport Honda finished nearly 13-seconds ahead of second place. And Kyle Busch was able to hold off teammate Daniel Suarez in his Toyota to win the NASCAR race at Pocono.

CONCOURS D’ELEGANCE OF AMERICA HIGHLIGHTS
And speaking of racing, if you missed the concours at St. John’s in Plymouth, Michigan over the weekend, you also missed one of the greatest lineups of race cars from Porsche’s history. Including its most-iconic, the 917 K. And here’s a taste of other classics that caught our eye. This unrestored Stanley from 1922 really stood out, the only changes being a new boiler and tires. Speaking of standing out, this very shapely Bosley Interstate from 1966 certainly fits the bill and always had a crowd gathered around it. I have seen all of the GM Firebird concept cars before, but this stripped-down rolling chassis was a first for me. Really cool to see the inner workings. And the sheer size of some of these vehicles really grabs your attention. Like a 1930 Bentley with a massive 152.5-inch wheelbase or this hulking Bugatti that weighs 7,000 pounds and features a 778-cubic inch engine. And while the Bugattis were a real treat, the highlights of the show for me were these two Delages and this 1937 Delahaye. Without a doubt these are three of the most beautifully styled cars I have ever seen in my life.

Coming up next, the aftermarket for passive automated driving and assist systems is about to see big growth over the next couple of years.

MARKET FOR PASSIVE ADAS ABOUT TO EXPLODE
A recent study from SEMA, Ducker and the Center for Automotive Research found that the aftermarket for passive automated driving and assistance systems will jump from $977 million in 2016 to $1.5 billion in 2021. On last week’s Autoline After Hours, we were joined by John Waraniak from SEMA and he explained why that market is set to explode.

You can watch that entire discussion right now on our website, Autoline.tv or just look for it on our YouTube channel.

And also be sure to check out our coverage of Center for Automotive Research’s MBS conference. John will be talking to automakers about the issues they currently face. Look for those interviews starting today and continuing throughout the week on our website.

But that’s it for today, thanks for watching and please join us again tomorrow.