AD #3502 – PHEVs Dirtier Than We Knew; Tesla Outsells Ford, Honda & Chevy in CA; Chinese MG Tops UK Sales

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

TESLA OUTSELLS FORD, HONDA, CHEVROLET IN CALIFORNIA
It’s been a long, long time since an American car or truck outsold Toyota in California. But last year Tesla topped the sales charts in both categories. The Model Y was the best selling vehicle in the truck category, easily outselling the Toyota RAV-4 and Ford F-series. And the Model 3 was the best selling car, outselling the Toyota Camry and Corolla. Toyota was still the top brand overall, but Tesla was in second place, outselling Ford, Honda and Chevrolet and in that order.

CHINESE MG TOPS UK SALES
And who ever thought we’d see a Chinese car topping the sales charts in the UK? Last month, the top-selling vehicle in the UK was a Chinese car, the MG HS mid-size crossover. While MG is a historic British brand, Chinese automaker SAIC has owned it since 2006. And another MG, the ZS compact crossover, was the 8th best-selling. The British Society of Motor Manufacturers and Traders reports that nearly 132,000 new cars were registered last month, up nearly 15% compared to a year ago. EVs accounted for 13% of the market, a gain of nearly 20%, while diesels only made up 4%, a drop of 12% from a year ago.

NISSAN TURNING THE CORNER FINANCIALLY
Looks like Nissan could finally be turning the corner financially. Last quarter its revenue jumped up 28% to $21.7 billion and its net profit shot up 55% to $388 million. Nissan expects global sales to fall 8% this quarter, mainly from a drop in China due to Covid. But thanks to strict financial controls it still expects to meet its financial goals for its fiscal year.

U.S. USED CAR PRICES GOING BACK UP AGAIN
Used car prices in the U.S. are going back up again. After dropping 15% last year, average used car prices jumped 2.5% in January according to Manheim. Part of the reason they’re back up is because more buyers got back into the market when prices went down. Used retail sales were up 16% in January compared to December and were up 5% from a year ago. We think used prices are only going to go up even more. Next month marks the 3-year anniversary of when the Covid pandemic started, which is when new car sales took a swan dive. Fewer people were leasing cars and since the average lease is about 3 years, we’re going to see fewer cars coming off lease. And it will get worse as the year goes on because pre-Covid there were about 3.3 million vehicles coming off lease a year.

GM WINS SOLID STATE BATTERY AWARD IN CHINA
BMW and Nissan recently announced progress in developing solid-state batteries. And now General Motors in China won an award for its solid-state battery technology from R&D World magazine. Developed by GM’s Science Lab in China, the battery features bipolar stacking and a proprietary ionic booster, which GM says helps increase the volumetric cell-to-pack ratio by 30% and reduces cost by 19% compared to a standard lithium-ion battery. The solid-state battery can be used for 12V start/stop systems, 48V mild hybrids and battery-assisted systems. GM also said it will “support” its Ultium platform but did not reveal any more details. The battery has other non-automotive applications like energy storage devices, locomotives, wind power generation and mobile medical equipment.

PHEVs DIRTIER THAN WE KNEW
Plug-in hybrids are much dirtier than originally thought. A recent study from the ICCT showed that PHEVs are in all-electric mode anywhere from 26-56% less than the EPA thought they would be. And Transport & Environment just released a paper that calls plug-in hybrids “A dangerous distraction, not a climate solution.” With the help of a University in Austria, it tested three popular PHEVs, the BMW 3 Series, Peugeot 308 and Renault Megane, in real-world conditions in Austria. And in all three tests, gas and electric mix, electric only and gas only, the vehicles missed their WLTP estimates and in some cases by a wide margin. The figures where the gas engine is operating aren’t too shocking to us. We’ve reported before that cold engine startups emit more pollution than a warm engine and a PHEV will likely have several cold starts in a single trip since the engine never has time to fully heat up. But it’s interesting that only the Megane hit its EV range estimate, while the other two were off by a lot. And Transport & Environment says if plug-in hybrid emissions were accurately reflected in WLTP testing that automakers would have to sell nearly 250,000 more PHEVs to match their current fleet emissions.

CHINA EV INC. JUGGERNAUT
Foreign automakers in China are really starting to feel the heat from Chinese car companies, and it’s about to get a lot worse. China EV Inc. is a tidal wave that’s bigger and faster than anything the legacy automakers have ever seen. That’s according to China expert Tu Le, with Sino Auto Insight. He’ll be on Autoline After Hours today. We’ll take a deep dive into the competitive threat the Chinese auto industry poses, and what the rest of the auto industry needs to be aware of. So join John and Gary when the show goes live this afternoon at 3 pm eastern time on our website or YouTube channel.

CHEVROLET TRAILBLAZER UPDATES
The Chevy Trailblazer is getting a slight refresh. Most notably, it now comes with an 11-inch center display as standard, up from the 7 or 8-inch display, depending on the version, from the previous model. It also now comes with an 8-inch driver display. All trims come with their own unique wheels, front fascia, exterior lighting and grille designs. And there are two new exterior colors. The powertrain remains the same, a 1.2L inline three-cylinder turbo comes standard and it’s also available with a 1.3L inline three-cylinder turbo. The 1.2L and 1.3L with front-wheel drive are equipped with a CVT, while the 1.3L with all-wheel drive is matched with a 9-speed automatic.

TOYOTA ADDS 3 ROW HIGHLANDER
Toyota revealed a 3-row version of the Highlander, called the Grand Highlander. But it’s really a bit more than just a 3-row Highlander. It has its own unique styling. The body surfacing is flatter and the sides are more upright. The grille sits lower in the reworked front fascia and like the overall design, the rear is less rounded and has a more upscale look, in our opinion. The turbocharged 2.4L, which makes 265 horsepower, in the standard Highlander makes its way over to the Grand Highlander. But it also gets two hybrids. One uses a 2.5L engine and the other pairs the same turbocharged 2.4L unit with a rear eAxle that makes nearly 100 horsepower. Mated exclusively with AWD – FWD is also available – the Hybrid MAX version of the Grand Highlander will do 0-60 in 6.3 seconds. Toyota didn’t stop at just the styling and engines. The interior is unique as well, highlighted by a new treatment around the center display screen, which has more of a floating effect. Price and on-sale date of the Grand Highlander will be revealed this summer.

TOYOTA GETS HACKED
Cyber security is still a major headache for automakers and suppliers. Automotive News reports that a white hat hacker was able to break into Toyota’s supplier portal, getting access to email accounts, documents and other information. The hacker alerted Toyota and the company fixed the issue, but this could have been a nightmare. The white hats are after bounty money–rewards that companies pay to hackers who uncover vulnerabilities. But if this had been a black hat attack, it could have crippled Toyota.

But that’s the end of today’s Autoline Daily. Don’t forget to watch After Hours and then we’ll be right back here again tomorrow.