AD #3009 – Daimler Splitting In Two; DS Adds 4th Model to Its Lineup; Ford Continues to Scale Back

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

DAIMLER TO SPLIT INTO TWO COMPANIES
Wow, big news here! Daimler is going to split into two separate companies. Let’s start with the headlines. The Truck & Bus part of the company keeps the Daimler name, while the car part of the business gets the name Mercedes-Benz. Not only will the commercial division be spun off but it gets its own separate stock listing, its own fully independent management, and its own stand-alone corporate governance including an independent Chairman of the Board. Current Daimler shareholders will get a bunch of stock from Daimler Truck and it will happen before the year is out. Those are the details. And while there’s plenty of corporate speak about how they’ll be able to unlock the full potential of Mercedes-Benz and Daimler Trucks by collaborating with financial and service companies to provide financing, leasing and mobility solutions, we know what this move is really about: trying to be viewed less like a traditional automaker to get its stock price up. It’s also about brand image. Some people had a hard time wrapping their heads around the fact that Mercedes-Benz, the brand with some of the most luxurious vehicles in the world, is also the brand on trucks that haul around slop. Also, the commercial market is likely to stick with piston power for a longer period of time, so the Mercedes-Benz brand will be able to separate itself from that as well.

U.S. INVENTORY LEVELS ENOUGH TO KEEP UP WITH DEMAND
That chip shortage is preventing automakers from building up inventory. Based on numbers from Wards Intelligence there are 700,000 fewer vehicles sitting on dealer lots in the U.S. compared to a year ago. Even so, there are still 2.7 million vehicles in inventory, so Wards says automakers should be able to keep up with demand. The problem varies by automaker and brand. For example, Acura and Buick have over 100 days of inventory, while Chevrolet and Mercedes have 46 days.

CHIP SHORTAGE FINALLY HITS GM
And the chip shortage is finally disrupting General Motors. The automaker announced it is suspending production all of next week at three of its plants in Kansas, Ontario and Mexico. And it’s also cutting production at one of its plants in Korea in half. Some of the vehicles those plants build include the Chevy Malibu, Equinox and Trax, Cadillac XT4, GMC Terrain and Buick Encore. The company is focusing on keeping its plants that build its full-size trucks and SUVs up and running. Autoforecast Solutions estimates that GM will produce 10,000 fewer vehicles next week due to the disruption.

CHIP SHORTAGE MAY CONTINUE INTO Q3
And it could be a while before chip supplies are back to normal. IHS Markit says the shortage may extend into the third quarter of the year and global light vehicle production will drop by 672,000 units in the first quarter. China will feel the biggest impact at 250,000 units. The Taiwan Semiconductor Manufacturing Company makes nearly 70% of the chips used by the auto industry but it currently can’t keep up with demand which is causing a bottleneck.

We invite you to join us for a great gearhead deep-dive into Cadillac’s CT4-V and CT5 V-Series Blackwings this afternoon. Tony Roma, Cadillac’s chief engineer for these cars, will be our guest on Autoline After Hours. If you’ve got questions you’d like to ask, send an email to viewermail@autoline.tv, or tweet it to @Autoline. Chris Paukert from Roadshow by CNET will also stop by, so join John and Gary as we learn how Cadillac kicked the V-Series up another notch.

DS BRAND ADDS 4TH MODEL TO ITS LINEUP
The Stellantis Group’s DS brand is adding a fourth vehicle to its lineup. The DS 4 is a C-segment crossover that’s based on the Group’s EMP2 platform, which underpins other vehicles like the Citroen C5 and Peugeot 4008. While it features a sweeping silhouette, the bodywork is quite angular, which is highlighted by the Daytime Running Lights or what it calls DS WINGS. The digital instrument cluster and flush-mounted infotainment display are pretty standard for the day, but we think the overall interior design has a bit of a futuristic vibe. The DS 4 will be available with a number of gasoline engines as well as a diesel and plug-in hybrid setup. The latter combines a turbocharged 4-cylinder engine with an electric motor that together produce 225 horsepower. It did not reveal the size of the battery pack but says the vehicle will be able to go 50 kilometers or 31 miles on battery power only, which is based on the WLTP test cycle. Look for the DS 4 to go on sale in Europe in the fourth quarter of this year.

FORD CANCELS EV PARTNERSHIP WITH ZOTYE
Under CEO Jim Farley’s leadership, Ford is scaling back its global operations like GM has already done. Recently, Ford backed out of a partnership with Indian automaker Mahindra, it ended production in Brazil and now it’s cancelling an EV partnership with Chinese automaker Zotye. Ford says that China’s EV policies have changed since it signed a deal with Zotye several years ago, which led to its decision. Ford didn’t reveal what policies it’s referring to but in a statement the company said it will focus on utilizing its existing operations in the country and pursue a more “flexible business model in China.”

FORD LAUNCHING BRONCO OFF-ROAD RACER
Speaking of Ford, it’s launching a new off-road racing version of the Bronco, called the Bronco 4600. It’s based off the Bronco 2-door chassis and powered by a twin-turbo 2.7L V6 mated to a 10-speed automatic. Fox coilover shocks, Wilwood brakes, portal hub, locking differential and 35-inch tires are just a few of the highlights. The trucks will be used to race in the ULTRA4 stock class beginning this year.

LADA REIMAGINES THE LARGUS
Lada is kicking off its first joint project between Russia’s AVTOVAZ and Renault, a reimagination of the Largus family of vehicles. It gets a new bumper, hood, fenders, grille, headlamps and wheels, while the Russian-specific version also receives a reinforced chassis and better anti-corrosive protection. The interior is refreshed with a new dashboard design, steering wheel, seats and infotainment system. Pre-sales of the new Largus will start later this year.

SKODA DESIGN GIVES VAN ICON A MAKEOVER
Here’s something we think you might find fun. Skoda’s Icons Get a Makeover series sees its current designers come up with modern interpretations of some of its most historic models. Its latest episode focuses on a young designer who wanted to take a fresh look at the Skoda 1203, a van that launched in 1968 and ran into the 1990’s being used for everything from an ambulance to a hearse. This new version is a pop-up camper van with nods to the original in the form of a cab-forward design, long, straight character line down the side and rounded headlamp. But overall it’s less rounded than the original and features a much more modern lighting signature and interior layout. The designer said he wanted you to know it was a 1203 without being too retro. If you think this is cool, click on the link we provided to see the whole series. And if you want to see creations like this come to life, legendary customizer and designer Chip Foose has been doing a similar show on Hagerty’s YouTube channel.

EV & PHEV SALES NEARLY TRIPLE IN EUROPE
Even though car sales are falling in Europe, sales of EVs nearly tripled. Europeans bought more than 1 million BEVs and plug-in hybrids last year, achieving 10% market share.

U.S. JANUARY BEV SALES FALL
Meanwhile, in the U.S., sales of BEVs fell 14% last month. That was mostly due to a massive drop in sales of Tesla’s Model 3. But it wasn’t the only one. Sales of the Chevrolet Bolt, Hyundai Kona and Jaguar I-Pace also fell. But a number of BEVs did better. The Audi e-Tron, Porsche Taycan, Nissan Leaf, Kia Niro, and Hyundai Ioniq saw sales increase. And the Mustang Mach-E and Polestar 2 entered the segment.

But with that we wrap up today’s show. Thanks for watching and we hope to see you again tomorrow.