AD #3143 – Cost of Ownership Going Up; Genesis Reveals Its First EV; BYD Now Worth More Than Daimler & GM

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

AUTOMAKERS CONTINUE TO WORK AROUND CHIP SHORTAGE
The chip shortage continues to hammer automotive production. Toyota announced it is cutting global production in September by 40% or roughly 360,000 vehicles. At the same time, Volkswagen says it may need to slash production as well because it expects the supply of chips in the third quarter to be “very volatile and tight.” And lastly, Ford is suspending production of the F-150 at its Kansas City assembly plant for one week, starting next week.

NHTSA CONSIDERS RAISING FINES FOR MISSION FUEL TARGETS
Earlier this month, the EPA proposed boosting fuel economy targets. And now NHTSA may increase fines for automakers who don’t meet the standards. Under the Obama Administration, NHTSA raised fines from $5.50 to $14 for every 0.1 MPG each vehicle misses the target. That was supposed to go into effect in 2019, however the Trump Administration delayed the rule until 2022. Now NHTSA is asking the public if it should reinstate the increased fines. The auto industry is against it since it could cost companies hundreds of millions of dollars. Tesla on the other hand is in favor of boosting fines. It says the credits it sells to automakers are worth less because of the lower fines.

COST OF OWNERSHIP GOING UP
The price of new vehicles keeps going up but so is the cost of owning one. According to a new study from AAA, the average annual cost of owning a new vehicle in the U.S. is nearly $10,000 or about $805 a month. It looked at 45 models and compared them in six categories including, fuel; maintenance/repair/tire costs; insurance; license/registration/taxes; depreciation and finance charges. The biggest factor in the cost of ownership is depreciation which accounts for 40% of all expenses. The AAA says more people purchasing a new vehicle need to factor in the total cost of ownership before buying.

KIA GOING TO BRING TH SORENTO PHEV TO THE U.S.
Kia is taking the plug-in version of the Sorento beyond Europe. It’s going to arrive in the U.S. in the third quarter, which is around the same time pricing will be announced. Although, it did say the vehicle qualifies for a tax credit of over $6,500. That’s thanks to its 13.8 kWh battery pack, which Kia estimates will provide 32 miles of all-electric range. It also features a 1.6L turbo mated to a 6-speed automatic and a roughly 67 kW electric motor that combines for a total output of 261 horsepower. And standard all-wheel drive will help make the Sorento PHEV attractive to consumers that live in nearly any climate. Other than some special badging and, of course, a charging port there’s not much else that’s unique to the plug-in Sorento.

MERCEDES RAISES SUSPENSION OF SPECIAL C-CLASS WAGON
Kia is not the only automaker expanding a vehicle’s lineup. Mercedes is launching an All-Terrain version of the C-Class wagon in Europe that has a slightly higher ride height. It’s been raised by 40 mm or about an inch and a half. Standard all-wheel drive, larger wheels and two off-road drive modes will also help it tackle rougher terrain. Design elements unique to the All-Terrain include a new grille design, reworked front and rear bumpers as well as black cladding over the wheel wells and side skirts. The car is going to make its public debut at the Munich auto show in September and launch in the market later in the year.

GENESIS REVEALS ITS FIRST EV
Genesis revealed its first electric vehicle, a small crossover, called the GV60. It rides on the Hyundai Group’s E-GMP, a dedicated EV architecture that underpins other vehicles like the Hyundai IONIQ 5 and Kia EV-6. It has styling cues similar to other Genesis vehicles, like thin lighting that’s stacked on top of each other and separated by a small sliver of body color and signature trapezoidal grille. But that grille has been shoved way down on the fascia, which we think is a styling cue to help signify that the GV60 is an EV, but it also gives it a shark nose look. The interior is less luxurious and more techy than other Genesis models. It’s clean and note the lack of any hard edges. Everything is rounded. It also features two small display screens in the doors for the digital outside mirrors. No word yet on when the GV60 will hit the market.

MAGNA DEVELOPS ILLUMINATED GRILLE FOR EVs
Since an EV doesn’t need the same amount of cooling as an ICE vehicle, we’re starting to see automakers move away from traditional grilles. But grilles have always been one of the most distinctive elements from one brand to another. Magna’s new Mezzo Panel could bring some of that uniqueness back. Its surface looks clean and smooth, but that can change instantly with hidden lighting that you can’t really see until it’s lit. And that can allow automakers to come up with some really creative designs. There’s also space for animated lighting as well as active aero technology and ADAS sensors. Magna did not reveal when we could first see this technology on a production car.

BYD NOW WORTH MORE THAN DAIMLER & GM
Chinese automaker BYD has been on a tear lately. It’s seeing record sales in China, it’s started to export some of its more popular models to places like Australia and Norway, it has new partnerships with Toyota and ride-hailing giant Didi and its supposed breakthrough blade batteries are rumored to be purchased by Tesla. With all of that going on at the company, the price of its shares tripled in the second half of last year and it’s carried over into 2021. BYD is now valued at $115 billion, which makes it worth more Daimler and GM.

Can traditional automotive manufacturing make the transition to electric and autonomous cars? Can the Motor City transform itself into the Mobility City? That’s what we’ll be talking about on Autoline After Hours this afternoon. Our guest is Trevor Pawl, the chief mobility officer for the State of Michigan. Other topics we may dive into include, is Tesla in real trouble with the feds? Will record car prices today mean fewer sales in the future? And Nissan has the new Z. Toyota has the new GR86. Are they niche or notable? See what John and Gary have to say at 3PM eastern time later today.

ANOTHER MYSTERY CAR CHALLENGE
Autoline viewer Warwick Dundas is back for more. He wanted us to show you pictures of this car, which was clearly used mostly in racing, but it could be registered for the road. It was made in the early 60’s and had two style generations. Warwick says, “If someone gets this I will give up trying to defeat the Autoline viewer motoring experts.” I have to admit I’m torn. On one hand I want you all to get this, and I think you will, but on the other hand I kind of like this ‘try and stump Autoline viewers’ thing we got going on here.

But that wraps up today’s show. I hope you have a great rest of your day.