AD #2984 – Apple Aims for Own EV by 2024; Hummer EV Could Be a Money Machine; FCA Sues Engine Block Supplier

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

U.S. DECEMBER SALES FORECAST TO INCREASE FROM NOVEMBER
New car sales continue to gain momentum in the U.S. market. Wards Intelligence forecasts that the SAAR, or seasonally adjusted annual rate, will come in at 15.8 million vehicles, up from 15.6 in November. Even so, sales still have not reached the daily selling rate they hit a year ago. Automakers face strong headwinds from corona-virus lockdowns as well as low inventory levels for dealers. One wild card factor could be fleet sales. Companies often order new trucks and vans in December so they can get a tax benefit for the full year.

HOTTEST AUTOMOTIVE STOCKS
The hottest automotive stocks yesterday were Chinese EV startups. BYD was up 9%, NIO was up nearly 5%, Li Auto rose about three and a half percent, while XPeng rose 1.3%. Kandi, the company that wants to sell cheap EVs in the US, but is accused of falsifying its revenue, fell 2.8%. Overall, the Chinese EV startup sector rose 3.8%. One reason may be that investors were looking for an alternative to Tesla which fell $45 a share, or more than 6%. And one reason why Tesla got hit were reports that Apple could start making electric, autonomous cars.

APPLE AIMS TO BRING OUT EV IN 2024
Now we all know that Apple has toyed with the idea of making its own car as part of its Project Titan. But those stories have been around for years and have fluctuated wildly. So, take this with a grain of salt. Reuters reports that Apple’s operations have progressed far enough that it’s aiming to introduce an all-electric passenger vehicle by 2024. Apple is also working on its own self-driving system and battery technology. Obviously, making cars is difficult and Apple had previously been in talks with Magna to contract manufacture its EV, but it’s unclear if it would still go down that route. As for the battery, it’s looking at an LFP or Lithium Iron Phosphate chemistry and a monocell design, which gets rid of the need for a pouch or module to hold battery materials. That frees up space, which could be used to increase range. And if Apple decides to get into the automotive business, watch out. It has a war chest of over $90 billion.

 

HUMMER EV COULD BE A MONEY MACHINE
That electric Hummer that General Motors is coming out with could be a money machine for the company. The Detroit Free Press reports that GM has 10,000 pre-orders for the introductory model, which is called Edition 1. It’s priced at $112,595, meaning it will generate over $1 billion in revenue. Subsequent models will be priced at ninety-grand and eighty-grand, respectively. We think that the GMC Hummer should be able to generate $2 billion a year in revenue on an on-going basis.

BOLLINGER SHOWS CHASS-E FOR COMMERCIAL APPLICATIONS
Bollinger must really see an opportunity for itself in the commercial segment. It previously showed off an electric delivery van, called the Deliver-E and now it’s showing how its Chass-E, which underpins the B1 and B2 SUV and pickup, can be used for a number of commercial applications. It comes in two wheelbases, up to a 180 kWh battery pack, and the ability for front, rear or all-wheel drive setups. The Chass-E also has the capability for a 5,000 lb payload, the capacity to tow 7,500 lbs and can even be ordered with portal axles to improve ground clearance. Bollinger says it could see anything from an ambulance to a bucket truck using the setup.

MERCEDES TO UNVEIL HUGE HYPERSCREEN
Byton won’t have the only EV with a massive screen. On January 7th Mercedes is going to unveil the display setup for the EQS sedan, which it has dubbed the Hyperscreen. It’s a curved unit that will feature artificial intelligence and span the entire width of the dash, in front of both the driver and passenger. Stay tuned for more.

 

OTHER AUTOMAKERS “LOW KEY” USING TESLA’S SUPERCHARGERS
Tesla says it’s open to other automakers using its Supercharger network. But so far, no OEMs are using it…at least officially. In response to a question on Twitter asking why no one has taken Tesla up on its offer, Elon Musk responded that other automakers are using it but just “low key.” He did not reveal which automakers but it’s possible he’s referring to companies in Europe because Tesla is now using CCS connectors for its Superchargers there. Also, Aptera posted a video recently which showed it plugging a Tesla connector into one of its vehicles. But we also wonder if Elon is referring to automaker’s in China. But if any of our viewers out there have an idea, please let us know in the comments section.

FCA SUING ENGINE BLOCK SUPPLIER
FCA is in an ugly battle with Canadian supplier Martinrea over parts shortages. The automaker sued the supplier in federal court, accusing it of breach of contract for not providing it with enough engine blocks, which FCA says could cost it more than $100 million. The engine blocks are used in the Jeep Wrangler, Gladiator and Grand Cherokee, as well as the Dodge Durango, Ram pickup and Chrysler Pacifica. FCA says Martinrea agreed to supply more than 13,000 engine blocks weekly but that was cut in half when the supplier reallocated one of its engine-block machines to another customer. Martinrea however, blames the shortage on FCA. It says the automaker began insourcing some of its casting production and it reallocated production based on FCA’s decision. FCA is seeking to compel Martinrea to fulfill its contract, and wants a monetary award for damages and legal fees.

CONTINENTAL & NEXTEER FORM AV JOINT VENTURE
Auto suppliers Nexteer and Continental teamed up to create a joint venture called CNXMotion to develop braking and steering technology for Level 1 through 5 autonomous vehicles. And now they’re sharing details about its brake-to-steer technology, which is another layer of steering control for AVs. The technology uses the electronic brake system to steer the vehicle while controlling its speed. In an emergency, it can slow and move the vehicle to the side of the road or stop it in its lane. The companies say it’s a cost-effective solution because it uses the vehicle’s existing braking and steering systems.

A reminder that the last Autoline Daily for the year will be with tomorrow’s show. The Autoline crew will take a holiday break and be back at it on January 4th.

But that’s it for today, thanks for watching.