AD #3446 – End of ICE Age Sales Frenzy; Geely’s $25,000 EV Pickup; VW’s New Type of Fuel Cell

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

END OF ICE AGE SALES FRENZY
EVs are the fastest growing segment in the auto industry, and analysts expect them to really rocket forward from about the middle of 2024 until the end of 2027, as more and more EVs hit the market. But that could also trigger a surge in sales of ICE vehicles, or at least of certain models. Analyst Jeff Schuster from LMC Automotive says it’s entirely possible that as anti-EV consumers realize that their favorite internal combustion car or truck will be going out of production, they’ll race out to buy the last ones as fast as they can. And so piston powered cars and trucks could see a sales surge towards the end of the decade.

ALFA TOPS JD POWER SALES SATISFACTION INDEX
Alfa Romeo makes beautiful cars, but they haven’t sold that well because they don’t have a good reputation when it comes to reliability. But Alfa is starting to show signs of improvements, at least in the U.S. market. Alfa just topped J.D. Power’s Sales Satisfaction Index for the first time. The SSI, as it’s known, measures how well the dealer handled the sales process, so that doesn’t address the reliability issue. But even so, that’s a big win for Alfa. It beat out Porsche and Lexus. Buick topped the list among the mass market brands, ranking ahead of Dodge and Subaru. Two interesting findings from the SSI study: J.D. Power says buyers who special order a vehicle rather than buying what’s on the lot are a lot more satisfied; and dealers need to do a better job with EV customers. They reported lower satisfaction with the sales experience than people who bought gas powered vehicles.

 

RIVIAN’S LOSSES GROWING
Rivian posted its Q3 earnings and they show how hard it is to launch a new car company. It sold only 6,584 vehicles, bringing in $536 million in revenue. It lost $1.7 billion, which was 40% worse than a year ago. And it’s burning through roughly $1 billion in cash every quarter. Rivian CEO RJ Scaringe says they still have enough cash on hand to last until the end of 2025. But Reuters cites an analyst from CFRA Research who says Rivian desperately needs to build up its production volume. He says Rivian’s cost of goods per vehicle is $220,000, but its trucks are selling for an average of $81,000.

 

VOLVO ADDS BIG EV SUV TO LINEUP
Volvo revealed its newest electric vehicle, the EX90. The 7-seater SUV features a 111 kWh battery paired with a two motor AWD system that generates 380 kW or 517 horsepower. The setup provides an estimated 600 kilometers of range on the WLTP cycle, which is roughly 372 miles. Other highlights include a large 14.5 display screen laid in portrait mode on the dash, bi-directional charging, Plug & Charge capability and assisted driving technology. Autonomous driving will be available in the future, which we think will be unlocked with an OTA update. The EX90 will first be made in the U.S. starting sometime next year and then later on in China as well. Depending on the market, customers will be able to buy it, lease it or subscribe to it and they’ll be able to do that both at the dealer and online. Volvo says with the introduction of the EX90, it will introduce one new fully electric car each year.

 

HONDA LAUNCHES ALL-NEW ACCORD
Speaking of new vehicles, Honda pulled the wraps off the new Accord. It’s longer by nearly 3 inches, slightly wider in the rear and sleeker than the outgoing model. We think the styling is a little more sophisticated as well. The interior takes inspiration from the new Civic, highlighted by the horizontal air vents that stretch across the middle of the dash, the three HVAC control knobs and a high-mounted, floating display screen. Higher end versions get a 12.3 inch unit, which is the largest Honda has ever offered. Under the hood is the option for two powertrains. The base is still a 1.5L turbo engine mated to a CVT, but both have been upgraded to reduce engine noise. The other is Honda’s dual-motor hybrid setup that pairs a 2.0L 4-cylinder engine with those motors and combines to produce just over 200 horsepower. I didn’t see anything in the press release about when the new Accord will be available, but it will continue to be made in the U.S.

 

GREEN METALS A PRIORITY AT FORD & VOLVO TRUCKS
Automakers are focusing more and more on creating a green, sustainable supply chain. And Ford and Volvo Trucks are the latest to make progress in sustainability. Ford is pledging that at least 10% of its aluminum and steel purchases by 2030 will have near zero-level carbon emissions. And Volvo Trucks is now delivering heavy-duty electric trucks to customers made with fossil free steel. The metal is produced by Swedish steel manufacturer SSAB using a new process with fossil-free electricity and hydrogen.

 

VW’S NEW TYPE OF FUEL CELL
Volkswagen is making huge investments in EVs, but it is also developing fuel cells with a German company called Kraftwerk Group. The unique thing about their stack is that it uses ceramic membranes, as opposed to polymer membranes like Hyundai and Toyota use. The ceramic membranes are cheaper to produce because they don’t require platinum. And the stack produces heat that can be used to run the HVAC system, making it even more efficient. The fuel cell is estimated to deliver an astonishing 2,000 kilometers of range. That’s more than 1,240 miles! Kraftwerk’s CEO says the fuel cell isn’t exclusive to Volkswagen and it plans on launching a model in 2026 “regardless of the manufacturer.” It wants to produce 10,000 vehicles spread across several brands.

GEELY’S $25,000 EV PICKUP
Pickup trucks have never been all that popular in China, but that could be about to change. Geely is launching an electric pickup called the RD6 that’s sold under the Radar brand name. It starts at less than $25,000 and tops out at $37,000. It sits on a dedicated EV platform with the top line trim offering a 140 kilowatt hour battery pack that will deliver 380 miles of range. It’s available in 2-wheel and 4-wheel drive. Max power is 536 horsepower with 566 pound feet of torque. It can haul a 1,700 pound payload and tow over 6,600 pounds. Those are pretty impressive specs with a very impressive price and it’s products like this that could get Chinese consumers interested in pickup trucks. That’s why Geely is considering doing an IPO with Radar.

 

TESLA GOES ZOOM-ZOOM-ZOOM
Ever had to deal with the stress of being stuck in traffic and late for a work meeting? Not anymore, at least not if you’re a Tesla owner. All new Tesla models will soon be able to handle Zoom calls. So, whether it’s an interview, work call or just chatting with friends, you’ll be able to video conference from inside your vehicle.

What are legacy automakers going to do with their ICE operations as the market transitions to electric vehicles? Volvo and Renault are already spinning off their ICE operations. So will the others do that too, or what? That’s the topic on Autoline After Hours today. We’ve also got Christian Steinmann, the CEO of a company called Clear Motion that developed a revolutionary suspension system for cars and trucks. You’re not going to believe how it works. Jack Nerad, the automotive writer and consultant will also be on the show. So join John and Gary to get some of the best insights into what’s happening in the automotive industry.

And that’s it for today. Thanks for tuning in.