AD #3506 – Tesla to Refresh Model 3; VW Axes ID.2 Design, Goes with Golf Styling; Mercedes Developing Baby G-Wagen

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

TESLA TO REFRESH MODEL 3 STYLING
Elon Musk has been following Henry Ford’s strategy with the Model T–come out with a superior car, don’t make major styling changes, and just keep improving the product. That has worked great, but Tesla started facing some serious competition, especially in China, where sales of the Model 3 fell 17% last year. Tesla cut prices last month and that brought in a bunch of orders, but sales are starting to flatten out again this month. Bloomberg reports that Tesla will launch the refreshed Model 3 in China later this year, though the company hasn’t confirmed that yet. Tesla has only made one significant styling change since it started making cars. That was in 2016 when it changed the nose on the Model S. We think that dramatically improved the look of the car, and maybe it will do something similar with the Model 3 and Y. The nose on those cars have been criticized as being bland, and a styling update could instantly increase their appeal.

SENATOR RUBIO ALARMED BY FORD-CATL DEAL
Ford made big headlines this week announcing it will build a $3.5 billion battery plant in Michigan that will use technology and know-how from Chinese battery maker CATL. But Senator Marco Rubio from Florida says he’s alarmed by the deal. He says it will make the United States more dependent on the Chinese Communist Party for battery technology. He’s asking the Treasury, and the Energy and Transportation Departments to make sure no IRA money goes to CATL. Ford says don’t worry, it will own and operate the battery plant and says CATL will not get any IRA subsidies. No doubt Ford anticipated this kind of backlash and sounded out the Biden Administration before it went ahead with this plan. So we think it’s unlikely that Senator Rubio will torpedo the deal.

 

FORD STOPS F-150 LIGHTNING PRODUCTION
Even so, Ford has another major headache on its hands. It had to stop production of the F-150 Lightning because of a possible problem with the batteries. And trucks that are in transit will not be delivered to customers. Ford has not publicly identified the problem, but says it’s a potential quality issue that it found on one of the trucks at the plant. Hopefully it will solve this quickly because it’s committed to hitting a run rate of 150,000 Lightnings a year by the third quarter. 

VW AXES ID.2 DESIGN, GOES WITH GOLF STYLING
The Volkswagen Golf is going to live on in all-electric form. According to WardsAuto, VW was going to launch an entry-level model, called the ID.2, which was supposed to be based on the ID.LIFE concept. But the CEO of the VW brand rejected the industrial-grade styling of the concept and fired VW’s head of design. Now the new design boss, Andreas Mindt, is going to use the Golf name on a new version of the model and insiders say the styling is going to have strong links to the 4th-gen Golf that came out in the late 90’s. It’s going to be based on VW’s new MEB+ platform and is said to be a little smaller than the current Golf, but with roughly the same amount of interior space. The electric Golf will also feature LFP batteries and will initially come in front-wheel drive. And Golf is not the only iconic VW name that’s going to live on. It’s also going to drop GTX, which it used for sportier versions of its electrics, and bring back GTi. A concept of the electric Golf is scheduled to debut in March and the production car is expected to launch in 2025 with a starting price around $24,000.

MERCEDES DEVELOPING BABY G-WAGON
The Mercedes G-Class was originally introduced in 1979 and developed as a military off-roader. At one point, Mercedes didn’t even want to export it to the U.S. because it thought it was too utilitarian for American tastes. But then gray market importers took advantage of that, and started importing it on their own. And Mercedes was stunned at the demand and how much they were charging for them. Today, the G-Class has a loyal following and a starting price of $140,000. And according to Handelsblatt newspaper, it sounds like Mercedes is expanding the G-Class line. It will come out with a new compact version of the G-Class sometime around 2026. 

NISSAN BADGE BECOMES AIRBAG PROJECTILE
We don’t cover every single recall in the industry because there’s just too many of them. But this one is just too wacky to pass up. Nissan is recalling over 460,000 vehicles worldwide because the Nissan logo on the steering wheel can become a projectile when the airbag deploys. Affected vehicles include the Frontier, Titan, XTerra, Pathfinder and Armada from 2008-2011 as well as the 2008-2009 Quest minivan. Nissan says there has been at least 4 reports of injuries from flying emblems. 

CHATGPT COMING TO A CAR NEAR YOU
AI tech like ChatGPT is coming to a car near you. Jidu, a joint venture between Chinese tech giant Baidu and the automaker Geely, just became the first automaker that will integrate a ChatGPT-like artificial intelligence service in its vehicles. But they call it ERNIE. Jidu is developing robocars based on Geely’s SEA platform, the first of which will be delivered later this year. The Ernie Bot AI chatbot, which was developed by Baidu, will offer interactive experiences for passengers and allow them to communicate with the car more naturally.

SUPERCHARGER NETWORK TO OPEN FOR NON-TESLA OWNERS
Everyone knows that Tesla’s Supercharger network offers the best charging experience that’s out there. And now Tesla will open the system to its competitors in the U.S., or at least some of it. By the end of next year, Tesla will make 3,500 superchargers along highways and another 4,000 Level 2 chargers at places like hotels and restaurants, available to non-Tesla customers. That’s less than half of the 17,700 superchargers Tesla has in the U.S. And it’s all about getting IRA money. The Biden Administration made a deal with Tesla. It could get taxpayer money for more Superchargers as long as it opened them up to the public. EV drivers will be able to access the chargers with the Tesla app or through its website. And Tesla will be eligible for federal subsidies as long as one of the chargers has a CCS plug.

U.S. DOT SAYS EV CHARGERS MUST BE MADE IN USA
And speaking of those EV charger subsidies, the Department of Transportation finalized rules for companies to receive them. All chargers must be fully assembled in the U.S. and by July of next year, 55% of the cost of all components must be built in the U.S. It also requires all iron and steel charger enclosures be made in the U.S. As part of the infrastructure bill passed in 2021, it set aside $5 billion in subsidies for EV chargers and the government will pay 80% of the cost to install them.

By the way, tomorrow’s Autoline After Hours will be all about the IRA. We think it’s a game-changer that is going to put the US in a super competitive position when it comes to manufacturing electric vehicles. So be sure to join us when the show goes live tomorrow at 3 pm eastern time.

But that’s the end of today’s show. Thanks for joining us and we’ll be right back here again tomorrow.