AD #3685 – EU Unions Target Tesla; Ford to Build Bronco in China; NIO Targets 2025 For U.S. Market

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

EU UNIONS TARGET TESLA
UAW president Shaw Fain says that he’s going to target non-union automakers in the US like Toyota and Tesla. But Tesla is also getting targeted by unions in Europe. The Wall Street Journal reports that IG Metal in Germany wants to unionize Tesla’s assembly plant in Berlin. Elon Musk claims that Tesla pays higher wages in Germany than other automakers, but IG Metall says it pays lower wages and does not pay any summer vacation or Christmas bonuses. The union claims there’s a big gap in total annual wages for Tesla workers compared to others. Tesla clearly wants to keep the union out. It’s giving workers an immediate 4% raise and a €1,500 bonus to offset inflation. And in February they’ll get a €2,500 raise. Meanwhile, in Sweden, workers at a Tesla service center went on strike to pressure the company to sign a collective bargaining agreement with a union called IF Metall. And another union, the Swedish Transportation Workers Union, is threatening to block Tesla’s from being imported to Sweden in support of the workers who are on strike. 

REPORTS: TESLA TO MAKE €25,000 IN BERLIN
Reuters reports that Tesla will build a €25,000 car at its plant in Berlin, though Tesla has said nothing official about it, and we don’t know when it could go into production. But this may also be related to reports that Tesla will cast the entire underbody of a car in one piece to slash manufacturing costs.

OEM’S COULD TARGET TOOL & DIE SUPPLIERS TO CUT COSTS
As a new union contract drives up worker wages, automakers will be looking to offset that by trimming costs in other areas. And according to manufacturing expert Laurie Harbour, tool and die makers are an easy target. The president and CEO of Harbour Results says that tools and dies made by companies in North America are typically 50-60% more expensive than parts manufactured in China. So, even though they’re hit with a 25% import tariff they’re still cheaper. The good news for North American tool and die makers is that there’s a lot of work coming down the pipeline. Harbour says the number of new vehicle projects slated for 2026 is 250 and automakers will start taking quotes on those projects from tool and die makers soon. Interestingly, she says 154 of those are ICE projects, while the other 96 are electrified.

DEALERS DON’T TRUST FORD, LOVE TOYOTA 
Ford’s dealers in the U.S. aren’t happy with the automaker’s EV strategy and as a result, it’s the least trusted brand among dealers. According to a survey by Kerrigan Advisors, 48% of the 650 dealers surveyed said they don’t trust Ford, while Toyota is the most trusted brand at 72% approval. Ford dealers aren’t happy that the company wants to implement a direct sales model for its EVs and they believe it will lead to a decline in the profitability. Nissan followed Ford with 43% of dealers not trusting the brand. Then comes Lincoln, the Stellantis brands, and Infiniti. Not surprisingly, Lexus is second to Toyota among the most trusted brands, followed by Subaru, Honda and Porsche.

JEEPS GO TO BRAMPTON, DODGE MUSCLE CARS TO WINDSOR
​​The Canadian union Unifor revealed some of the investments Stellantis will make into its Canadian operations. The company’s plant in Brampton, Ontario will build the next-generation Jeep Compass and its Windsor Assembly Plant is the first in line to produce its next-gen Dodge muscle cars. All told, Stellantis will invest about $2.4 billion into its Canadian operations. And its workers vote today on whether they’ll ratify a new three-year deal that includes those investments, plus wage increases.

NIO TARGETS 2025 FOR U.S. MARKET
Chinese EV maker Nio plans to enter the U.S. market in 2025. The company’s U.S. CEO says it will import its vehicles made in China to the U.S., which means they won’t qualify for EV tax credits. Nio’s CEO says it considered building a plant in the U.S. but decided not to because it would be too expensive. Several of its exclusive suppliers in China don’t have operations in the U.S., and it would be too costly to bring them there. Nio is facing more and more competition in the EV market in China, so it’s looking to expand overseas to the U.S. and 25 other markets by 2025.

GM TO EXPORT LUX SUVS TO CHINA
In the complete opposite move, GM is going to start importing U.S.- made vehicles to China next year. Its new high-end Chinese import division, called the Durant Guild, announced that it will start selling the Chevy Tahoe and GMC Yukon Denali in China in 2024 as well as expand its direct-to-customer showrooms and delivery centers. Beyond big SUVs, the Durant Guild will also likely import and sell the Chevy Corvette and Silverado EV and the GMC Hummer EV. 

FORD TO BUILD BRONCO IN CHINA
But instead of importing its popular models, Ford is just going to build them in China. It’s going to make the Bronco with one of its joint venture partners, Jianling Motors. Its other partner is Changan. The Bronco has already gotten the OK from the Chinese government to enter production and camo test vehicles have been spotted out on the road. Like the base version in North America it will be powered by a 2.3L engine, which is mated to a 7-speed manual or 10-speed automatic. The Bronco is scheduled to go on sale in China next spring with an expected starting price around $41,000.

TOYOTA PUSHES AVs IN U.S., JAPAN…
GM Cruise is running into a buzz saw of regulatory problems with its autonomous cars. It suspended all driverless rides and hired a law firm to review its internal policies. But Toyota seems to be going all-out in its push to develop AVs. NTT, or Nippon Telephone and Telegraph, is going to work with Toyota to develop AVs in Japan. And it will also invest about $70 million in May Mobility, an AV startup based in Michigan that Toyota also invested in.  

…AND IN CHINA
Then, in China, Toyota is working with the AV startup Pony.ai to develop robotaxis based on the bZ4X electric car. It uses Pony.ai’s 7th generation Level 4 AV tech including lidar, cameras and radar. That makes Toyota the only automaker so far that is developing robotaxis for the U.S., Japanese and Chinese markets. 

VOLVO EX-30 IS A DREAM TO DRIVE
Volvo is going to build its baby EV, the EX-30, at its plant in Belgium, in addition to its plant in China. No doubt that’s part of a strategy to reduce its dependence on China, but Volvo says it’s because the demand for the EV is far stronger than expected. And no wonder. With a base price in the U.S. of $36,245 including destination charges, it’s the only compact crossover offered by a premium brand at that price. A fully loaded, twin motor version comes in at just under $48,000. The EX-30 is a handsome, simple-looking car. Like Teslas, it has a minimalist interior, though Volvo says that’s actually a reflection of its Scandinavian design. Except for the turn signals, windshield wipers and headlamps, all the controls are handled through the center screen. It’s a dream to drive with a clear, wide view outside the windshield, precise steering, excellent acceleration and easily modulated brakes. It handles superbly and rides comfortably, achieving a good balance between firm cornering and road isolation. The front seats are supportive and comfortable, though the rear seats are short on knee room and thigh support. The base model comes with a 265-horsepower motor, a battery with 64 usable kilowatt hours and a 275-mile driving range. The twin motor version delivers 422 horsepower. That’s a quick overview. We’ll be posting interviews with Volvo designers and engineers to give you a lot more detail, and we’ll let you know when they go up.

     

But that brings us to the end of today’s show. Thanks for tuning in.