AD #3719 – VW Group EVs Outsell Tesla In EU; 33 U.S. Senators Warn Non-Union OEMs Over UAW; Is An OTA Really A Recall?

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

U.S. 2023 SALES HIT 15.3 MILLION UNITS
Most automakers selling light and medium duty vehicles in the US finally reported their sales for 2023 and here’s what the numbers look like. They sold a total of 15.3 million vehicles, up 16% compared to 2022. And the year ended on a high note, with December sales hitting a SAAR, or seasonally adjusted annual rate, of 16.4 million, which was at least a million units higher than analysts were forecasting. Here’s the sales ranking by automaker. General Motors topped the list, with Toyota surpassing Ford for second place. Amazingly, the Hyundai Group, including Kia and Genesis, is the 4th largest automaker in the American market, beating out Stellantis and Honda. Nissan came in 7th place, with Tesla outselling Subaru and the Volkswagen Group. Strangely, Mercedes still hasn’t reported its 2023 sales, but it probably wouldn’t change any of these rankings.

2023 U.S. SALES
1. General Motors	2,600,000	+14.1%
2. Toyota	2,200,000	+6.6%
3. Ford	1,900,000	+7.0%
4. Hyundai Group	1,700,000	+12.5%
5. Stellantis	1,500,000	-1.3%
6. Honda	1,300,000	+33.0%
7. Nissan	899,000	+23.2%
8. Tesls	670,000	+36.5%
9. Subaru	632,000	+13.6%
20. VW Group	565,000	+14.2%
Source: Automotive News

VW GROUP EVs OUTSELL TESLA IN EU
Meanwhile in Europe, sales of pure electric vehicles rose 21% last year as Europeans bought 323,000 more BEVs than they did in 2022. Total BEV sales went over 1.8 million units, and surprise, surprise, the Volkswagen Group handily outsold Tesla. The Group, including VW, Audi, Skoda, SEAT and Cupra, but not Porsche, sold over 358,000 BEVs in Europe last year, compared to 325,000 for Tesla. While Tesla does not break out sales on a regional basis, the website EU-EVs collects owner registrations, which serves as a proxy for sales. Stellantis, which includes Peugeot, Opel, Citroen, Vauxhaul and DS came in 3rd place with 163,000 BEVs, the Hyundai Group captured 4th place with 148,000 and Renault, including Dacia, came in 5th place with 136,000 units. It’s sometimes interesting to see how EV sales compare on a corporate basis, and not just by brand or model, which is why we collected these numbers for you. 

2023 EU EV SALES
1. VW Group	358,316
2. Tesla	325,228
3. Stellantis	163,496
4. Hyundai Group	148,633
5. Renault Group	136,142
Source: EU-EVs

TESLA MORE EFFICIENT THAN BYD SELLING CARS
BYD may have passed Tesla in sales of pure electric vehicles in China in the fourth quarter of last year but Tesla is still ahead when it comes to sales efficiency. According to data from China Merchants Bank International, during the first ten months of 2023, Tesla sold more than 1,500 vehicles on average at its stores in China, up from 1,300 in 2022. BYD on the other hand only sold 600 cars per store, including plug-in hybrids, which was about the same as 2022. Tesla’s real-time management of its sales staff is credited with giving it an edge. It monitors its 2,800 sales staff on an hourly basis, to find out how good they are at bringing new customers into showrooms, arranging test drives and placing orders. The best staff can earn more than $4,200 a month plus bonuses, which is much higher than its rivals. Even so, BYD’s market share is growing faster than Tesla in China. Tesla held a 12% share in the first 10 months of 2023, up from 10% in 2022 but BYD’s share grew from 21% in 2022, to 27%.

UK CAR SALES BEST SINCE COVID BREAKOUT
Like the U.S., the UK also posted its best year of new car sales since the pandemic. According to the Society of Motor Manufacturers and Traders or SMMT, automakers sold more than 1.9 million vehicles, up nearly 18% from 2022. That includes nearly 315,000 BEVs, which is more than the previous two years combined. But while sales were up strong last year, they’re still nearly 18% below pre-pandemic levels. And the SMMT expects the first few months of this year to be rocky for sales due to “regulatory uncertainties” regarding EU-UK rules of origin.

IS AN OTA REALLY A RECALL?
Tesla is making headlines because it has to recall nearly every vehicle it’s ever sold in China, but we wonder if it should really be called a recall when all the issues can be fixed with an over-the-air update? China’s State Administration for Market Regulation ruled that drivers can easily misuse the Autopilot system, which increases the safety risk. The official wording of it sounds very similar to what NHTSA said when it issued a recall on Autopilot in North America. And last month Tesla voluntarily sent out an OTA that made Autopilot alerts more noticeable, simplified how the system is turned on and off and implemented a 5-strike penalty for those that ignore warnings. It’s unclear if China will accept the same fixes. And right now I’ve got mini alarm bells going off in my head. The Chinese Government has already expressed concerns about all the data captured by Tesla’s Autopilot system. Tesla set up a domestic storage center to make sure that data stays in the country as a way to help smooth things over. But I still have some worry this could turn into something bigger. 

33 US SENATORS WARN OEMS OVER UAW
A group of 33 senators, all Democrats, sent a letter to non-union car companies in the U.S., including Tesla and Rivian, urging them to stay neutral with the UAW. The letter comes after the UAW accused several companies of union-busting activities, which the automakers deny. The letter says in part “a neutrality agreement is the bare minimum standard manufacturers should meet in respecting workers’ rights, especially as companies receive and benefit from federal funds related to the electric vehicle transition.” It also seems to imply that the Senate could cut IRA funding if a company does not allow collective bargaining for its workers. We mostly agree that automakers should respect workers’ rights and stay neutral in union organizing. But maybe someone should tell these politicians that they ought to be neutral and stay out of this too. 

CHINA AUTO INDUSTRY MISSES SALES GOALS
Sales of New Energy Vehicles or NEVs rose 38% in China last year to nearly 9 million units. But car makers that struggled with NEV sales and exports, which was the other big growth sector in China, were well off their targets for the year. According to partial data released by the China Passenger Car Association, two-thirds of Chinese automakers completely missed their sales goals for 2023. What’s more, only 82 NEV makers were able to sell at least one car, which is down from 92. And it’s not going to get any easier as the competition heats up in the country.

BYD’S EVs SELL WELL IN BRAZIL
Many traditional automakers, like Toyota, have said they don’t plan on introducing EVs in developing markets because those countries don’t have the infrastructure to support them. But BYD is proving that’s not the case, at least in Brazil. The Chinese automaker was the top EV brand in 2023, with nearly 18,000 vehicles sold, which includes its plug-in hybrids. The Dolphin EV helped fuel that growth. It launched in Brazil in the middle of 2023 and sold nearly 7,000 units in six months. Overall, more than 52,000 BEVs and PHEVs were sold in Brazil last year.

NACTOY CHOOSES BEST CAR, TRUCK, UTILITY
NACTOY, which is an organization of 50 automotive journalists from across the United States and Canada, announced the winners for the best car, truck and utility of the year. The Toyota Prius, including the Prius Prime was voted the Car of the Year, beating out the Honda Accord, and Hyundai Ioniq 6. The Ford Super Duty pickup line was voted Truck of the Year, beating out the Chevrolet Colorado and Silverado EV. And the Kia EV9 was voted the Utility of the Year, beating out the Genesis GV-70 EV and Hyundai Kona EV. Here’s how Jeff Gilbert, the president of NACTOY, summed up this year’s voting.

And that brings us to the end of today’s show. Thanks for tuning in and I hope you have a great weekend.