Listen to “AD #3663 – UAW Strike Damaging Supply Chain; UAW Workers Will Retire Millionaires; U.S. Q3 Sales Surprise Analysts” on Spreaker.
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Runtime: 11:47
0:00 UAW Strike Damaging U.S. Supply Chain
0:53 GM Builds $6 Billion Strike Fund
1:18 UAW Workers Will Retire Millionaires
1:57 Fain to Update Strike Tomorrow
2:20 GM Still Struggling with Ultium-Based EVs
3:51 Honda Passport Gets Rugged Upgrades
4:48 Honda Launches New Kei Car in Japan
5:41 Toyota to Buy Batteries from LG Plant in Michigan
6:20 U.S. Q3 Car Sales Surprise Analysts
7:33 Ford Fails to Sell Saarlouis Plant in Germany
8:10 Daimler Demos Its Tesla Semi Rival
9:19 Rivian Adds Range… At a Cost
10:08 Lucid Offers Lower Cost Air Sedan
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UAW STRIKE DAMAGING U.S. SUPPLY CHAIN
Day 21 of the UAW strike and now it’s starting to damage the US supply chain. MEMA, the Motor Equipment Manufacturers Association, says nearly 30% of auto suppliers have laid off workers because of the strike. 60% expect to lay off more workers this month. Over 6,000 non-striking workers have been laid off at automakers and suppliers. And Ford just laid off another 400 employees starting today. MEMA says 70% of suppliers worry that the strike is going to force many of their sub-suppliers to go out of business. So, MEMA is working with the White House to try and get financial support for suppliers that can’t get loans from banks.
GM BUILDS $6 BILLION STRIKE FUND
In a related move, General Motors announced it secured a $6 billion line of credit to ride out the strike. So far the strike has cost GM $200 million in lost production. Ford lined up a $4 billion line of credit before the strike even started. And both of those are signals to the union that they’re financially ready to ride out a long strike.
UAW WORKERS WILL RETIRE AS MILLIONAIRES
Meanwhile, Ford presented the union with its 7th offer that could bring the total wage increases to 30% over the life of the contract. It includes retirement benefits that would have workers retire with at least $1 million in savings. And that seems to have moved the needle. Reuters reports that there are signs of progress in the contract talks. But it looks like the union and the automakers are still far apart on several issues, notably union representation at the joint-venture battery plants that the car companies are building with battery companies.
FAIN TO UPDATE STRIKE TOMORROW
We’ll have a much clearer idea tomorrow how much progress is being made. UAW president Shawn Fain will announce at noon tomorrow what the union’s next steps are going to be. So maybe we’ll see a pause in the action, or maybe we’ll see more plans close down as additional workers join the Stand Up strike.
GM STILL STRUGGLING WITH ULTIUM EVs
GM seems to be figuring out how to make Ultium batteries in bigger quantities, but sales of its Ultium-based EVs are still slow. In the third quarter it was able to deliver roughly 4,200 Ultium-based EVs, which is about 3-times more than last quarter. The growth comes from the Lyriq and the Hummer, not new models like the Blazer and Silverado. It only delivered 19 Blazer EVs and 18 Silverado EVs. And with GM idling the BrightDrop assembly line in Canada to next year, it probably won’t deliver many more than the 35 Zevo 600s it did in Q3. By comparison, GM was able to deliver nearly 16,000 Bolts in the same time, which is not based on the Ultium platform.
HONDA PASSPORT GETS RUGGED UPGRADES
A few years back Honda created a new off-road brand, called TrailSport and several models now wear a TrailSport badge. The idea was to start with small factory upgrades and build up the capabilities over time. We’re seeing that progression with the updated version of the Passport TrailSport. For the first time the model gets a set of all-terrain tires. They’re General Grabbers which have a slightly more aggressive design. The Passport TrailSport also gets new revised spring rates, improved valve tuning in the shocks and sway bars that allow for more articulation. I think it will be interesting to see how consumers respond to a more off-road focused Honda. But on top of the TrailSport, all Passport models for 2024 will have slightly updated styling inside and out and includes the addition of a new Black Edition trim line.
HONDA LAUNCHES NEW KEI CAR IN JAPAN
Speaking of Honda and new models, it’s launching the third generation of the N BOX, a kei car it offers in Japan. And as a fan of the original Scion xB, I’ve always had a bit of a soft spot for the N BOX because they look so much alike. But the N BOX is quite a bit smaller with only room for four people. And because it’s a kei car, it’s limited to a 660 cc engine. Either a naturally aspirated or turbocharged version is available, which is paired to a CVT and front or 4WD. The N BOX is priced between roughly $11,000 – $16,000 and they sell pretty well. Between all the versions, Honda expects to sell 15,000 a month or 180,000 a year.
TOYOTA TO BUY BATTERIES FROM LG PLANT IN MICHIGAN
Toyota announced it has formed a long-term partnership with LG Energy Solution to have the battery maker supply it with lithium-ion battery modules made in the U.S. LG will invest $3 billion to expand its plant in Holland, Michigan to produce 20-GWh of NMCA or nickel manganese cobalt aluminum pouch cells starting in 2025. This is LG’s largest supply agreement that’s not part of a joint venture. The first vehicle to use the modules will be a new BEV built at Toyota’s plant in Kentucky.
U.S. Q3 CAR SALES SURPRISE ANALYSTS
Well, it’s obvious that the UAW strike hasn’t had much of an impact on car sales so far. New car sales in the US market shot up 20% in the 3rd quarter compared to a year ago, as fleets and retail customers bought over 1.3 million new vehicles. That’s much stronger than analysts expected. Here are how the full line manufacturers performed. General Motors topped the list with nearly 670,000 vehicles sold, up 21%. Toyota beat out Ford again with 590,000 units sold, up 12%. Ford came in with 497,000 vehicles, but look how close Hyundai-Kia and Genesis are getting to Ford, with nearly 450,000 vehicles, up 12.5%. If the strike persists and Ford starts losing sales, the Hyundai group could surpass Ford in the American market, which would come as a massive shock. Honda and Nissan also showed big percentage gains as they come off a disastrous Q3 in 2022.
FORD FAILS TO SELL SAARLOUIS PLANT IN GERMANY
Ford’s deal to sell an assembly plant in Germany has fallen through. Back in June, the automaker signed an agreement with a potential investor but that investor backed out of the deal. Ford didn’t reveal who the investor was but Automotive News reports it was a Chinese company. The plant in Saarlouis, Germany, which currently builds the Focus, is scheduled to be shut down in 2025. So if Ford is unable to find another buyer, the factory could be one of the first casualties in the switch to electrification.
DAIMLER DEMOS ITS TESLA SEMI RIVAL
There’s been a bunch of news recently as Tesla begins to get more of its Semis into customer hands, including a spin with Jay Leno behind the wheel, but not to be totally outdone Daimler is sharing details about a recent test with its long-haul semi, the eActros 600. With a full load and portions of the trip over a “steep rise” the truck was able to travel 530 kilometers or about 330 miles on a single charge. It says that full load was 40 tons. Tons spelled T-O-N-S, so we’re not sure if that was metric, imperial or U.S. tons but either way it would be about 80,000 to 90,000 pounds. As for the battery, it’s an LFP pack with roughly 600 kWh of space, which is where the truck gets its name. It went with LFP for its durability and ability for fast charging of up to 400 kW with a CCS plug and even Megawatt charging.
RIVIAN ADDS RANGE… AT A COST
Rivian is giving its electric truck and SUV a range boost…but it will cost you. The dual-motor versions of the R1T and R1S are now available with its 149-kWh “Max” battery pack. That boosts the SUV’s range to 400 miles and the truck’s to 410 miles, that’s up from 352 miles both models get with the Large battery. But like I said, the new pack isn’t cheap, it costs $10,000 more than the Large battery and it’s $16,000 more than the smallest battery option. The R1T with the Max pack is already being delivered to customers while the R1S will start this fall.
LUCID OFFERS LOWER COST AIR
Moving in the opposite direction, Lucid announced a new version of the Air with its lowest price yet. The Lucid Air Pure is priced at $77,400. That does not include destination charges or other fees, and it does not qualify for the IRA tax credit, which is capped at passenger cars that cost $55,000. The rear drive Pure offers 410 miles of range, and can add 150 miles of range in 12 minutes when using a DC fast charger.
But that brings us to the end of today’s show. And don’t forget to check out Autoline After Hours this afternoon, which I’m sure will get into some of the possible UAW strike scenarios.
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Seamus and Sean McElroy cover the latest news in the automotive industry for Autoline Daily.
Something hapoened. Autoline looks different, and comments don’t show.
Now they do, but previous comments are gone. Cool, though, that we can now edit, at least for a few minutes.
metric ton 2202lb. American long ton 2200lb American short ton 2000lb
Yeah I opened the show everything was normal, I watched the show and then did a refresh and the comments were gone and the whole site looks different. I’m okay with the change but it was strange how it happened. Hopefully we can alter comments now.
Hey all we just launched a new website! Hope you like it and as Kit already noted, you can now edit your comments!
Interesting show, Autoline Team!
Initial gasp; worries unfounded. ALD still accessible. Font is not as vivid. But it works.
Uh… comment from 2 minutes ago not posted.
@Sean: I just tried to edit Lambo’s comment but it did not let me do that 🙂
Early unposted comment was about the new screen. Initial worry about access, then OK. Font is not as vivid, but I can read it OK with glasses on.
I just refreshed and found the new page, too. I liked the original better; this looks too much like Facebook, but maybe we’ll get used to it. I do like that you can finally edit comments though. I’ll take a look around, but hopefully all the old archived shows are still here somewhere. When Sean, John, and family take some time off, we like to look through the old ones. Speaking of family, I see Seamus has prominent standing here now, I guess he is involved behind the scenes?
I like the format of the new comment section, easier to read. Great show as usual.
If anyone here is watching After Hours this afternoon you’ll have to go to our YouTube channel. They’re still launching new stuff on the back end of the site and we’re not allowed to add new things while that’s going on, which includes adding a post for After Hours. Here’s a link for the show if you’d like to watch live: https://youtube.com/live/YsYmhnVnR54
If that’s not your cup of tea, everything should be set by later tomorrow afternoon.
I’d been thinking the ultimate EV would be a Lucid ………. until I read this article from Motor Trend. During the winter, I see plenty of zero and below zero days – and the antics of trying to make a Lucid a livable vehicle during the winter would really upset me. I think I’ll stick with both my Ram Hemi and Hyundai V-6 for a while longer.
https://www.motortrend.com/reviews/2022-lucid-air-grand-touring-performance-yearlong-review-update-1-cold-weather-range-test/
Sean Glad to hear you report that GM’s affect was $200 Million in lost production and not a 200 million dollar loss like so many news organizations like to spin it. I heard another one this morning on the radio and even the DJs caught the skewed writing of the story. Headline was “Robot car runs over woman”. Pretty catchy ahe? Yea they explain how a woman was run over by an AV in San Fran and that the companies need to place a pause on this technology until it can be determined how this happened. Sounds like something everyone can be onboard with. Then as you read down further into the story you find out the woman was first hit by another car being driven by a human that threw the woman into oncoming traffic. The AV braked immediately but was unable to stop in time. The original driver that struck the woman fled the scene and has still not been identified. I’m just really bothered the way some stories are worded or flat out misleading to try and sway opinion. So good job Sean.
Just noticed for thr first time,Seamus name included in the credits.
;Lambo, 3:01 pm,
Did the article say if even the original driver was really at fault, or did she just walk in front of the car, not at a crosswalk?
@Kit 3:15PM
This article does not specifically say if the pedestrian was in the cross walk, but does state that the AV was accelerating through an intersection after being stopped for a red light. I can assume that the other driver hit someone in a cross walk to be that close to the AV.
https://news.yahoo.com/latest-cruise-incident-video-shows-212645144.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuYmluZy5jb20v&guce_referrer_sig=AQAAAMwS4GD5f5Z1uorzncZYOKSWVmaOMUQNPlgIE2sHRnkDStNFhS2hufzqba9JdbDtltLq_A5wk6vLLPUCP-VwjXBEoP2zkd-Xv-0fd6fJW4zeeiASBY_Qlzr88tD6F1SWFQ4uTlxNOvPpq2t7IzseUD1VU75h3l7dRhdgGAefKXV3#:~:text=On%2010%2F02%2F23%20at%20approximately%209%3A31%20pm%20officers%20responded,scene%20and%20transported%20the%20pedestrian%20to%20the%20hospital.
Sean, I like the new site, especially the ability to edit, but I’d like two things, a slightly bolder type font, easier to read on a small screen without glasses. Also, having the comments numbered was nice, when commenting on a comment. Overall, great.
I’m with Kit on numbering the comments.
It seems all the old comments aren’t accessible anymore.
Looks like Cadillac is very slowly returning to the European market. The Lyriq will be going on sale in Switzerland, with an online channel augmented by a select few ‘stores’ in key locations like Zurich city.
It’s always been a test market, and I suspect the free trade agreement with China means they’ll be sourced from there. Since gm can’t get US battery production up to speed anyway.
The Tesla Model Y remains Switzerland’s best-selling vehicle overall, though if you aggregate numbers for VW’s analogous corporate siblings, they come out ahead. Interestingly, the Model 3 dropped out of the top 15.
Edit: very nice being able to edit comments inside a given timeframe.
@Wim, I can’t edit Lambo’s comments either!
Kit I didnt actually read the article the DJ’s on the radio were discussing it but I’ll try and find it. It was a local news outlet in the Bay area.
I couldn’t find the exact article but there are a bunch just like it with just garbage descriptions in the title. Check out this one from NY. Which is surprising to me that such skewed reporting would come from such a Pro-green state. The headlines are just so misleading. It’s just become obvious that news organizations will place any headline out there that is blatantly false or at least only partially true just to get clicks.
https://nypost.com/2023/10/03/woman-rescued-from-under-self-driving-car-after-being-struck-twice/
The article seemed to tell the actual story, but the headline was highly misleading. The NY Post is in a “pro-green” state, but is a Rupert Murdoch publication.
Maxx, re. the Lucid. To me, the big problem was the inaccurate range readout, and the the crazy way the auto temp control worked. If it will only heat to 50 if set at 72, setting it at 80 shouldn’t make any difference.
As far as the actual reduction in range, It wouldn’t have surprised me if it had been worse than that, with single digit temps.
Kit, it does seem strange that AV and EV’s seem to often times get clumped together. Yea AV tech seems to be more prevalent on EVs, but they don’t necessarily go hand in hand. I think we are still many years away from an actual self-driving car that is reliable on all roads in all conditions. But much like EV’s they have their place and I believe that space will be very much a shared location with EV’s of inner city select locations and applications.
I believe we are looking at EV’s the wrong way and trying to replace the ICE with them. I think they need to start looking at a more cohesive application where EV’s make sense and keep ICE around for where they make sense. But I think that relinquishes the control government would like in having everyone forced into EVs.
In any case the EV growth should out-pace the AV tech much faster in fact I would like to see more EV’s without all the AV tech and maybe try and get the price down more.