AD #3820 – U.S. Poised for EV Growth Spurt; Toyota Develops Carbon-Free IC Engines; BMW Tones Down Massive Kidney Grille

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

UAW ASKS NLRB TO VOID MERCEDES VOTE
Well, we sort of expected this to happen. The UAW is asking the National Labor Relations Board to void the recent election at Mercedes’ plant in Alabama, and hold another one. The union claims the election was unfair because the automaker allowed anti-union workers to solicit votes on company time while pro-union workers were prevented from doing the same. The UAW also claims that Mercedes fired four pro-union employees. But 56% of the workers at that plant voted against joining the union, so we think it’s unlikely that another vote will take place. However, if the UAW didn’t contest the results, it could have been criticized by members for not fighting hard enough.

EVs POISED FOR U.S. GROWTH SPURT
Everyone’s talking about how much sales of EVs slowed down in the U.S. But Bloomberg says that may be just a blip, and that EVs are poised for their next growth spurt. It says 6 of the top 10 EV makers actually saw sales rocket up in the first quarter. Ford, Toyota, Mercedes, BMW, Rivian and Hyundai/Kia all saw EV sales grow by more than 50%. Last year there were 1.1 million EVs sold in the U.S. That could rise to 1.6 million this year. And the International Energy Agency forecasts that they could hit 2.5 million next year.

PORSCHE STRUGGLES TO SELL EVs IN CHINA
Porsche is coming out with the new 911 today, the first time it will offer a hybrid version of the model that defines what the brand is all about. That debut was going on while we were getting ready for this show, so we didn’t feel like there was enough time to properly cover it today. But while all eyes will be on the unveiling of the new 911, we want to direct your eyes to a news item that many will miss. Porsche is struggling to sell electric cars in China. Sales fell 23% last year and were down another 24% in the first quarter. We think it has to do with a wave of Chinese competitors because Porsche’s dealers in China are now selling Taycans at a loss, and they want Porsche to compensate them for that. We’re not surprised to see mass-market foreign brands struggling to sell EVs in China, but it’s shocking to see an iconic brand like Porsche getting steamrolled by Chinese upstarts.

BMW TONES DOWN MASSIVE KIDNEY GRILLE
It sure looks like BMW is starting to tone down on massive twin-kidney grilles. That’s been the case on several new models and for a new concept it just pulled the wraps off of, called the Skytop. It’s an open-top 2-seater that it calls a historic ancestor to the BMW Z8 and 503. We saw reports that BMW may make a few of these cars, but for now the Skytop is just a design exercise that will be displayed at car shows. So, we’ll only hit on a few highlights for now. It does come with a small removable leather roof panel. Some of the leather treatment on the interior looks like something you might find on a high-end shoe. The rear window can go all the way down, which gives you a nice view of the boat-tail-like rear end. And BMW says it will have its most-powerful V8 under the hood.

NISSAN TO USE GIGACASTINGS
Legacy automakers are catching on to the advantages of using gigacastings. Cadillac is using them in its $400,000 Celestiq. Toyota is working on them for its next generation EVs. So are Ford, Volvo and Hyundai. And now Nissan is joining the party. Automotive News reports Nissan will use gigacastings in its next generation EVs that will debut in 2027. It says they will cut cost by 10%, weight by 30%, and production time by 20%. Nissan plans to start with a rear gigacasting module made with 6,000 ton presses.

  

TOYOTA DEVELOPS CARBON FREE IC ENGINES
Mazda, Subaru and Toyota created the Multipathway Workshop, which is a commitment from each brand to develop new engines tailored to electrification and carbon neutrality. But this is not about designing a common engine family. Each company will keep some of their brand DNA. For example, Subaru will continue making horizontally opposed, ‘boxer’ engines, but showed how it will convert them to hybrid drive with what looks like an electric motor between the engine and trans. It already has a prototype system to display in the updated Crosstrek. Mazda, on the other hand, says it’s continuing work on rotary engines and displayed both a 1-motor EV and 2-motor EV system. Presumably, the engine would be used as a range extender. Another way the companies plan to decarbonize ICEs is by reducing the packaging size and Toyota thinks it can do that by specifically designing engines to be paired with electric motors. Like Subaru, it looks like it places an electric motor between the engine and trans and also thinks that reducing the powertrain size will allow it to reduce the overall size of the car. And all three manufacturers will try to make the engine compatible with carbon-neutral fuels. Toyota showed off a 2.0L turbocharged unit and also announced a partnership with ENEOS, Mitsubishi Heavy Industries and Idemitsu Kosan to develop and launch carbon-neutral fuels for cars. However, it’s going to take time. Right now they’re just kicking off a study of the fuels and don’t expect to introduce them, first in Japan, until 2030.

MAGNA STEYR COURTS CHINESE OEMs
With Fisker on the verge of going bankrupt, Magna Steyr, which makes the Ocean for Fisker, is looking for other customers to take up that capacity. Automotive News reports that Magna is in talks with Chinese automakers to manufacture vehicles at its plant in Austria where it built the Ocean. That plant is intriguing to Chinese automakers because producing vehicles in the EU could allow them to ease political tensions and avoid new tariffs that could be imposed soon. Magna didn’t reveal what automakers it’s in talks with but it does have a joint venture with BAIC to produce vehicles in China.

BRAZIL #1 FOR CHINA NEV IMPORTS
But it’s not just Europe where Chinese automakers are expanding their presence. According to the China Passenger Car Association, Brazil passed Belgium to become the largest export market for Chinese new energy vehicles. More than 40,000 BEVs and PHEVs were exported to Brazil in April, which was 13 times higher than a year ago and the second month in a row Brazil was China’s largest NEV export market. Part of the reason for the surge is that Brazil is increasing tariffs on EV and hybrid imports in July to help boost local vehicle production. Even still, Brazil is becoming an important market for Chinese automakers. It’s now the second largest export market for all types of vehicles after Russia.

BYD OPENS 100 DEALERSHIPS IN BRAZIL
And BYD is one of the brand’s leading the way in Brazil. The automaker just celebrated the opening of the 100th dealership in the market and it wants to grow that to 250 by the end of the year.

FAW TO MAKE EVs IN EGYPT
And in one last bit of China taking over the automotive world news, FAW is partnering with Egypt’s GV Investments to produce affordable EVs in the country starting in the first quarter of next year.

RENAULT MAKES A MOBILE HEALTH CENTER
Renault is showing off a mobile health care center in a new concept van, called the U1st. It’s a modular EV based on the automaker’s FlexEVan commercial vehicle architecture that underpins the Master van. It features a doctor’s exam room to offer care to patients. There’s a medical assistant onboard, while a physician can remotely monitor vital signs and use a screen to talk with the patient. A total of 22 companies helped develop the connected van and it was created to serve what they call “medical deserts” in small towns and developing countries. In addition to providing health care, Renault says the modular van can be used for other cases like mobile bike repair or recycling services.

But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.