AD #2928 – Tesla Ready to Sell LiFePO Model 3’s; Buick Revives Old Name for New EV Concept; Alfa Says Quality Going Up

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

TESLA READY TO START SELLING LiFePO MODEL 3’S IN CHINA
Back in June, Tesla won approval from the Chinese government to use cobalt free batteries in China made Model 3’s. And now Reuters reports that the company is ready to start selling them in China and that an announcement could come as soon as tomorrow. The Model 3 currently uses nickel-manganese-cobalt batteries but the company will begin equipping standard range Model 3s with lithium-iron-phosphate batteries. The new batteries are cheaper to produce because they don’t contain cobalt, which is one of the most expensive metals used in EV batteries. The Model 3 currently starts at about $40,000 in China, including EV subsidies, but some say prices could be cut by a “double-digit percent.”

VW BUYS HELLA UNIT FOR ADAS
Earlier this month, VW was in talks to sell Bugatti to specialty maker Rimac. The company is also reviewing what it wants to do with its other specialty brands like Lamborghini and Ducati. But while it’s looking to shed some of its car brands, it’s still adding others. VW’s software unit called Car.Software Org just acquired supplier Hella’s camera software business. Financial details weren’t disclosed. VW says the acquisition will help it develop driver assistance and automated driving functions for all of its brands in-house. The deal still needs regulatory approval but it’s expected to be completed by the beginning of 2021.

AUDI DETAILS NEW A3 PHEV
A few weeks back, Audi introduced a CNG version of the A3 Sportback for the European market. And now the model is getting an upgraded plug-in hybrid system. The powertrain consists of a 1.4L four-cylinder engine, a six-speed dual-clutch transmission, an 80-kW electric motor and a 13-kWh lithium-ion battery. That setup provides just under 42 miles of all-electric range based on the WLTP cycle, that’s about 12.5 miles more compared to the previous A3 plug-in. The new model goes on sale soon in Europe with a starting price of about 37,500 euros.

BMW REVEALS NEW 4 SERIES CONVERTIBLE
BMW is cracking the top on the new 4 Series Convertible. The big change over the previous generation is that it switches from a hardtop to a soft top. To give the convertible a more coupe-like appearance and smooth out airflow over the car, engineers made the bows that support the fabric top wider than what you would typically see. And by using a honeycomb design in their construction, the soft-top is roughly 40% lighter than the hardtop, which also reduces the car’s center of gravity. It frees up more space too. There’s a tiny bit more headroom and cargo space increases by 1.2 cubic feet. The new 4 Series Convertible starts hitting U.S. shores in March of next year and will carry a starting price of a little over $54,000, including destination charges.

BMW GETS GREAT FEEDBACK FROM PUBLISHING AI ALGORITHMS
Speaking of BMW, in 2019 the company published a number of algorithms for AI applications that are free to download and use. Well, it says the feedback it received was “overwhelming” and that it got back a number of useful enhancements based on its source code. Now BMW is able to apply those enhancements to the AI applications, some of which are used in the manufacturing process. Because the first round of algorithms it published was so successful, it’s publishing more. It now offers a complete package for AI-based object recognition. And users don’t need to have programming skills or special hardware or software. For example, to create an object recognition app, a human first labels photos on a computer, which helps the software learn what the user is looking for and what they aren’t. Within a few hours it’s able to determine what’s right and what’s wrong. So, for BMW it’s able to compare pictures from the production line to the labelled photos to make sure the right parts have been used on each vehicle.

BUICK REVIVES OLD NAME FOR NEW EV CONCEPT
Buick revived an old nameplate for a new EV that it debuted in China. The Electra is a wild-looking, all-electric crossover that is said to preview its next-generation design language for EVs. While we wouldn’t expect a design like this to ever hit the market, we will keep our eye out for a similar grille shape and lighting signatures on upcoming models. The Electra concept leverages GM’s new Ultium battery and drive system, which is said to combine for more than 660 kilometers or 410 miles of range, 435 kW of power and return a 0-100 km/h time of 4.3 seconds. We’ll have to wait and see if it can deliver on those claims.

ALFA ROMEO SAYS QUALITY IS IMPROVING
Say, has Alfa Romeo turned the corner when it comes to quality? While customers love the styling and performance of the Stelvio and Giulia, they’ve been panned for substandard reliability and that has hurt sales. But in an interview with Bob Broderdorf, the head of operations of Alfa Romeo in North America, he said we’re going to be surprised when the latest quality surveys come out.

Broderdorf – “Quite frankly, as we grow our volume, I’m really excited to get some of the quality scores out there in the marketplace, which you haven’t been able to see because most of the studies are 3-year studies. So when that data becomes available I think you’re going to be impressed with some of the improvements of the brand and how competitive we’ve become.”

We then asked him if the improvements in quality will be reflected in the residual, or resale values, of the Stelvio and Giulia.

Broderdorf – “I have insight that isn’t quite out yet to what the ‘21 model year residual is going to look like. I think you’re going to be incredibly impressed of how high in terms of best-in-class type residuals you’re going to see when we launch the ‘21 model year. A lot of that is due to the product changes and enhancements we’ve made.”

Best-in-class residuals is not a phrase we ever expected to correlate with Alfa Romeo and that represents a major turnaround for the brand. And all these changes are reflected in what’s going on in the market right now. While FCA does not release its sales until the end of the quarter, Autoline understands that the latest figures will show that Alfa Romeos sales were up over last year, even while the overall industry will be down. Those sales will be announced sometime tomorrow.

And don’t forget to join us for Autoline After Hours tomorrow. Our special guest is former automotive communications executive Simon Sproule. He was most recently the Chief Communications Officer at FCA and he also held communication positions at Aston Martin, Tesla, Ford and Renault-Nissan. So join John and Gary at 3PM eastern time tomorrow for some of the best automotive insight in the business.

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