AD #2839 – U.S. Auto Industry Gets Back to Work; Porsche Reveals 911 Targa; Dyson Blew £500 Million on Failed EV

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

U.S. AUTO INDUSTRY GETS BACK TO WORK
The big news in the U.S. is that the auto industry is reopening today with tens of thousands of workers returning to dozens and dozens of manufacturing plants to make new cars and components. Everyone wants to know what’s going to happen. Over the weekend I was interviewed by several television and radio stations and a newspaper, all wanting to know how the auto industry was going to pull this off. What I told them is what all of you already heard us saying here at Autoline. We know exactly what’s going to happen, because the industry opened its plants in China nearly two months ago, and in parts of Europe several weeks ago. Everyone will be thermally scanned to see if they have a fever before going in those plants. Anyone with any signs of the illness immediately will be given a Covid-19 test. Everyone will be given a packet with masks, gloves, and eye protection that they have to wear at all times. Their work stations will be separated by welding curtains and will be wiped down before, during and after their shifts. These procedures have worked very well in China and Europe and there’s no reason why they shouldn’t work in the U.S.

FORD HIRES MORE TEMPS FOR EXPECTED ABSENTEEISM
But that’s not to say everything is returning to normal. Despite all the safety precautions, Ford expects a lot more absenteeism from line workers who still don’t feel that it’s safe to return to work. So it’s hiring well over 1,000 temporary workers to plug the gap.

MERCEDES SHUTS U.S. PLANT DUE TO PARTS SHORTAGE
But hiring temps and taking precautions may not be enough to get things going. Mercedes-Benz was the first to reopen its assembly plant in the U.S. in late April. But it’s shutting down this week because it ran out of parts from Mexico. We believe that opening so early was a mistake. Starting production only to quickly shut it down again is disruptive and costly. And that plant was only operating on one shift. The good news is that Mexico is giving the green light to its auto industry to reopen this week, so hopefully the pipeline will quickly fill up for everyone.

PRESIDENT GOING TO FORD’S MICHIGAN VENTILATOR PLANT
President Trump is going to visit a Ford plant in Michigan that is making ventilators together with GE. That will almost certainly cause controversy. For one, the President is ignoring General Motors which leapt into action to make ventilators. In fact, the President has criticized GM’s efforts. Secondly, Ford is following safety procedures set down by the Center For Disease Control, and it’s stipulating that no one can go in its plants without wearing a mask. So everyone is wondering if the President will wear a mask. But I think we already know the answer to that one. Of course he is not going to wear a mask.

PORSCHE REVEALS TARGA TOP 911
Porsche revealed the Targa version of the 911 over the weekend. The model has been part of the 911 lineup since 1965 and is characterized by a silver Targa bar, retractable roof section and wraparound rear window. The roof section is made of two flat magnesium elements that hold the fabric roof, which is also packed with sound deadening material, in its place. And while the Targa bar is traditionally silver it can be ordered in black as well. All-wheel drive, Active Suspension Management and a 8-speed automatic are standard, but a 7-speed manual is also available on the 4S model. Its 3.0L twin-turbo 6-cylinder engine comes in two outputs; 379 horsepower in the Targa 4 and 443 horsepower in the Targa 4S. The 4 will do 0-60 in 4-seconds while the 4S will do it in 3.4 seconds. The Porsche 911 Targa will go on sale in the U.S. before the year is out. The Targa 4 will carry a starting price of about $121,000, while the 4S starts over $137,000.

DRIFTING A 500HP MUSTANG IN A DRIVEWAY
A lot of us are getting tired of being cooped up inside our homes, but what if you’re Drift King, Vaughn Gittin Jr., known for setting up elaborate drift courses? Well, you mix a 500 horsepower Fox-body Mustang, some orange cones, pool noodles and your driveway to have some fun. Gittin Jr. has a flare for pulling off difficult maneuvers in tight spaces, but he says, “I almost ended up in my living room on one run when I went full hot rod, but I managed to save it! I hope this puts smiles on many faces!” Well, Vaughn, you put a smile on our faces. So, thank you.

TESLA PICKS AUSTIN FOR NEXT GIGAFACTORY
Tesla is moving aggressively to start building vehicles in Texas. Electrek reports that the company chose Austin for its next Gigafactory and that it’s going to happen rather quickly. Construction is expected to happen soon and it will even assemble Model Ys at the plant by the end of the year. And by the end of next year, it will start producing the Cybertruck. So why isn’t Tesla building those vehicles at its Gigafactory in Nevada? Well, GM has a plant in Arlington and Toyota has one in San Antonio, so Tesla would be able to take advantage of suppliers and logistics by plopping down in Texas.

PANASONIC & TESLA TALK EXPANDING NEVADA GIGAFACTORY
Panasonic lost the title as sole battery supplier to Tesla, but due to strong demand for Tesla’s EVs the Gigafactory they operate together in Nevada was profitable for the 2nd consecutive quarter. In fact, demand is so strong that it’s going beyond the plant’s current capacity of 35 gigawatt hours per year. So, the two sides are now in talks together to expand capacity, but did not say by how much. Panasonic also says it will be working to improve materials and technologies in its battery cells this year.

CALIFORNIA REJECTS SUBSIDIES FOR SPACEX
And let’s squeeze in one more Elon Musk story. As you know he threatened to pull Tesla’s headquarters and operations out of California. And because of that, officials in California have rejected subsidies for Musk’s SpaceX company. It wanted over $650,000 to help train 900 employees and hire 300 more. So will SpaceX move to Texas, too?

DYSON BLEW £500 MILLION ON FAILED EV
Last year, the vacuum company Dyson, scrapped plans for its long rumored electric vehicle. But in an interview with The Sunday Times Magazine, Sir James Dyson not only shared some details about the EV, he also showed it off. Codenamed N526, it’s a seven-seater with over 600 miles of range, thanks to its solid-state batteries. It moves from 0 to 62 MPH in 4.8 seconds and has a top speed of 125 MPH. Dyson revealed that cost is the reason why he pulled the plug on the program. He spent 500 million pounds of his own money on the EV and he said each vehicle would have to cost 150,000 pounds just to break even. That’s over $180,000. But Dyson did say if it becomes economically viable, he would try again in the future.

LUCID MIXES EV TECHNOLOGY WITH ICE LUXURY
Before the coronavirus outbreak, something like 120 new battery electric models were scheduled to launch over the next three years. But right now there’s still not a whole lot of choice. That means an EV startup like Lucid Motors has a great chance to differentiate itself from the competition. Our Sean McElroy interviewed Eric Bach from Lucid to get an update on what they’re doing.

(Clip from Lucid Air interview can only be viewed in the video version of today’s show.)

To learn more about the all-electric Air sedan and when it will actually start hitting customers hands, you can watch the whole interview right now on our YouTube channel.

And that wraps up today’s report, thanks for watching.