AD #3163 – Ford Now Pre-Producing F-150 Lightning; BEVs Closing Gap with Diesels in Europe; Wuling Reveals New Asta CUV

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

IHS MARKIT SLASHES PRODUCTION FORECAST
It doesn’t look like this global chip shortage is going to start to right itself until sometime next year and so IHS Markit is slashing its production forecast for this year, next year and even into 2023. It expects automakers to produce nearly 76 million vehicles this year, which is a reduction of 6.2% from its original forecast or the equivalent of more than 5 million units in lost production. For 2022 it cut its forecast by 9.3% or nearly 8.5 million units and in 2023 it still sees production off by more than a million units. But the good news, if this forecast is right, production will return to normal in the middle of next year, then pent-up demand will cause pressure to build up inventory, which will lead to increased production in 2024 and 2025.

FORD KICKS OFF F-150 LIGHTNING PRE-PRODUCTION
Speaking of production, Ford must not want Rivian stealing all the spotlight for being the first automaker to deliver electric pickup trucks to customers. It revealed that it has started building pre-production versions of the F-150 Lightning at its Rouge Electric Vehicle Center in Michigan. Last month reports came out that Ford is increasing its investment into the electric truck due to demand being higher than it expected. With reservations now over 150,000, it’s spending an additional $250 million into the Rouge EV Center as well as two other facilities that feed that site. That will allow Ford to make up to 80,000 Lightnings a year by 2024, up from an original goal of 40,000 a year, and will require 450 new workers at the three plants. The F-150 Lightning will have a starting price right around $40,000 and a driving range of up to 300 miles.

KIA TO TEST BOSTON DYNAMICS ROBOT IN SOUTH KOREA PLANT
Let’s stick on the manufacturing side of things for a moment, the Hyundai Group is not wasting any time to leverage its newly purchased toy, Boston Dynamics. It’s running a pilot safety program at Kia’s plant in South Korea with Boston Dynamics’ quadruped robot, Spot, which you’re likely to have seen performing a number of tasks before. Using a thermal camera and 3D Lidar, Spot is able to detect possible fire hazards, identify hard to see areas and even allow plant and office personnel to remotely observe the plant, which is all done through a secure webpage. Kia will use this test to see if it’s worth expanding into other areas as well.

BEVs CLOSING GAP WITH DIESELS IN EUROPE
Not long ago, diesel cars used to account for more than 50% of new car sales in Europe but that’s quickly changing. According to LMC Automotive, the diesel share of new car sales fell below 20% in August, which is the lowest it’s been since 2001. A bit surprisingly, Germany accounted for a big part of that decline, 30,000 fewer diesels were sold there in August compared to last year. And while diesels still outsell battery electric vehicles in Europe, the gap is closing fast. 125,000 diesels were sold in August compared to 84,000 BEVs. But In the UK the gap is closing even faster, diesels only outsold electrics by 1,000 units last month.

BATTERY COSTS COULD RISE DUE TO RISE IN MATERIAL PRICES
The cost of batteries could start to increase due to rising prices of the metals needed to make them. According to Bloomberg, battery prices have declined sharply over the last decade, from $1,200 per kWh to just $137 per kWh in 2020. But about 40% of the cell’s cost is related to materials that have risen in price over the last year, which means the previous trend could reverse. Bloomberg says it won’t last for long but over the next few years, battery prices could be higher which will impact the margins automakers make on EVs. And if higher EV prices hurt sales, automakers could face fines in regions like Europe for not meeting emission targets.

STELLANTIS TO TEST TWO CONNECTED VEHICLE TECHNOLOGIES
Stellantis is getting set to test two different connected vehicle technologies in the U.S. The first will demonstrate a 5G cellular connection with a Multi-access Edge Computing platform. It uses on-site cameras and sensors to collect data at an intersection beyond what a vehicle’s on-board system can “see.” Any potential safety risks can then be communicated with pedestrians and approaching vehicles. Two Jeep Wrangler 4xe plug-in hybrids with Uconnect will be used for the test. Stellantis plans to launch the technology in the U.S. within the next decade. The second connectivity test involves a cloud-based warning system to alert drivers to emergency response vehicles or other road hazards through the vehicle’s Uconnect system. If the test goes well, Stellantis will look into rolling out the technology in the future.

WULING INTRODUCES NEW ASTA CROSSOVER
Wuling, which is part of the GM-SAIC Chinese joint venture, is expanding its lineup. It launched the Asta, an SUV that’s about the same size as a Chevy Equinox. And like the Equinox it comes standard with a 1.5L turbocharged 4-cylinder engine, but it’s mated to a CVT. That setup propels the Asta from 0-100 km/h in 10.6 seconds. Once inside, passengers will be able to enjoy a large panoramic sunroof and a ten and a quarter inch floating display screen. There are going to be five variants of the Asta that are priced between nearly $11,000 to roughly $15,500. 

VOLVO XC60 POLESTAR PHEV IMPRESSIONS
We recently had the Volvo XC60 Polestar plug-in hybrid roll through the Autoline Garage and we came away fairly impressed with the crossover. Outside of its gold brake calipers that hint at its performance, you wouldn’t know this thing is a rocket just by looking at it. Powering the vehicle is a 2.0L super and turbocharged engine mated to an 8-speed automatic transmission. Combined with the electric motors, it cranks out 415 horsepower and nearly 500 lb-ft. of torque. It has about 20 miles of electric range and fuel economy when running only on gasoline isn’t too shabby at 27 MPG combined. It’s a pleasure to drive and also whisper quiet inside while driving, especially when running only on electricity.

And while it’s impressively quick, the interior is the star of the show. The model we drove came with black leather seats with white stitching and gold seat belts that stand out nicely in the mostly black interior. It really adds to the premium feel. But you’re going to have to pay up, the model we test drove cost just over $71,000.

But that wraps up today’s show, thanks for watching and have a great weekend.