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Runtime: 10:41
0:00 Trump Threatens New Tariffs on Cars
0:57 German OEMs Have Huge Mexico Exposure
1:58 Trump Freezes EV Charging Spending
2:46 EU Auto Industry Shows Little Signs of Recovery
3:28 Honda: No Merger with Nissan Until It Turns Around
4:25 Ford F-150 Lightning Likely Getting Axed
5:32 New Off-Road Ranger Debuts in China
6:23 CATL to Build Plant with EU OEM
6:55 Hyundai’s New-Age Electric Rickshaw
7:33 Hyundai Launching 1st Made-In-India EV
8:22 Hal Sperlich Dies at 95
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TRUMP THREATENS CAR TARIFFS BY FEB 1
Donald Trump was sworn in as the 47th president of the U.S. yesterday, and he’s coming in with policies that will be highly disruptive for the automotive industry. First, Trump is promising to put 25% tariffs on vehicles imported from Canada and Mexico by February 1st. The tariffs also apply to imported components. If that’s a bargaining ploy, then Canada and Mexico only have 10 days to come up with a solution. Stellantis imports 40% of the vehicles it sells in the U.S. from Mexico. GM imports about 30% and Ford about 25%. And Wolfe Research says the tariffs will raise the prices of all vehicles by about $3,000.
GERMAN OEMs HAVE HUGE MEXICO EXPOSURE
Volkswagen and BMW are also deeply worried. VW’s assembly plant in Puebla, Mexico makes about 350,000 vehicles a year, most of which are exported to the U.S. Analysts say those vehicles, the Jetta, Tiguan and Taos, would not be price competitive with a 25% tariff. Audi makes about 175,000 Q5s in Mexico and about 76% of them are exported to the U.S. BMW’s plant in San Luis Potosi makes about 175,000 2- and 3-series and M2s a year, and about 60% of them are exported to the U.S. BMW also wants to make its Neue Klasse EVs there, or at least it did until Trump threatened the tariffs. Mercedes was making the GLB compact SUV in Mexico as part of a joint venture with Nissan. But that operation was announced to close last year.
TRUMP FREEZES EV CHARGING SPENDING
Trump got rid of President Biden’s executive order as well, which would have required 50% of all light vehicles sold in the U.S. by 2030 to be electrics. On top of that, Trump froze all the unspent money that’s been allocated to build public charging stations. He wants to repeal the waiver that the EPA grants to the California Air Resources Board, which has set its own Zero Emissions Vehicle mandate that 11 other states have adopted. And he says he’s considering eliminating the $7,500 subsidy for people who buy EVs. But so far Trump hasn’t said anything about the subsidies to build EV battery factories, something the auto industry has been lobbying hard to protect.
EU AUTO INDUSTRY SHOWS NO SIGNS OF RECOVERY
And it’s no wonder the German OEMs are so worried about Trump’s tariffs affecting their business in North America. They’re also getting clobbered in China, and the European market is barely growing. The ACEA reports that new vehicle sales in the greater European market came in at only 12.9 million units, up less than 1% last year. Sales of EVs dropped 1.3% to 1.9 million vehicles. And gas, diesel and PHEVs sales were all down. Although hybrids were up a strong 19%, which pushed Toyota to the biggest gain of all the large manufacturers.
HONDA: NO MERGER WITH NISSAN UNTIL IT TURNS AROUND
Honda told Nissan there won’t be any merger between the two companies until Nissan gets its business turned around. So Nissan will ax 9,000 jobs, mostly in production, and cut production by 20%. One of the models that’s getting dropped is Nissan’s AD compact van. It’s made in Shonan, Japan, and only accounts for 7,000 out of the 150,000 vehicles the factory builds every year. With issues like this starting to get cleared up, Honda and Nissan are expected to announce a framework for negotiations later this month.
FORD F-150 LIGHTNING LIKELY GETTING AXED
There may not be a next-gen fully electric F-150. According to AutoForecast Solutions, the current F-150 Lightning will go out of production at the end of June in 2027 and it doesn’t show a new model picking up again after that. There will be a next-gen F150 coming about a year later in 2028, so it’s possible there’s an electric version of that truck. But the Lightning has been a bit of a flop for Ford. When the truck was originally announced with a roughly $40,000 price tag, Ford snatched up hundreds of thousands of orders. But the starting price is much higher, which has had an impact. Ford cut production and shifts at its Rouge Electric Vehicle Center and for all of last year it sold about 33,500 Lightnings. On top of that Ford CEO Jim Farley previously said that large EVs are not profitable because of the cost of their bigger batteries. However, it’s not just Ford. No automaker has been able to sell full-size electric pickups in decent volumes yet.
OFF-ROAD FORD RANGER DEBUTS IN CHINA
And speaking of Ford pickup trucks, the automaker is launching a new off-road version of the Ranger in China. The model is called the FX4 Sand Fox Special Edition and features a number of upgrades, like FOX dual valve shocks, a rear watts link suspension setup, locking diffs, bead-lock wheels and it even has an engine snorkel. Power comes from either a gas or diesel 2.3L engine. The gas is paired to a 10-speed transmission, while the diesel gets an 8-speed unit. Pricing comes in just under $40,000, which is nearly double what a base Ranger costs in China. While pickup sales in China are nowhere near where they are in the U.S. due to some restrictions, the Ranger has been on sale in the country since 2018.
CATL TO BUILD PLANT WITH EU OEM
Chinese battery maker CATL is expanding in Europe. It announced a new joint venture to open a battery plant in Europe with a local automaker. But the company didn’t reveal which automaker or where the plant will be located. CATL already has two battery plants in operation in Europe, one in Germany and another in Hungary. And last month, it formed a partnership with Stellantis to open a battery factory in Spain, which will produce 50-GWh of LFP batteries a year.
HYUNDAI’S NEW-AGE ELECTRIC TUK-TUK
Hyundai is exploring the possibility of new electric 3-wheel and 4-wheeled vehicles for India or what I would describe as new-age tuk-tuks or rickshaws. It says it will look into their potential and based on those findings will determine if the project will move ahead. Hyundai would do all the design, engineering and supply the tech, while another company, called TVS Motor, which is based in India and makes scooters, motorcycles and rickshaws, would take care of the manufacturing and marketing of the vehicles. The 4-wheeler is also being looked at for global markets.
HYUNDAI LAUNCHING 1ST MADE-IN-INDIA EV
But Hyundai is also going after the small crossover segment in India with electrics. It’s launching its first made-in-India EV, an all-electric version of the Creta, of which, the ICE version is already Hyundai’s best-selling model in the country. The EV features either a 42- or 51.4 kWh battery, which provides up to 473 kilometers or nearly 300 miles of range. Power comes from a single electric motor that produces roughly 135 horsepower or nearly 170 horsepower in the version with the bigger battery pack. The Creta Electric will start at just over $20,000 in India and Hyundai believes it will expand the appeal of the small crossover even more.
HAL SPERLICH DIES AT 95
Hal Sperlich, one of the greatest product planners in the history of the auto industry, has passed away at the age of 95. He played a key role in coming up with the idea to do the 1964 Mustang when he was at Ford. He also was behind the original Ford Fiesta in 1976. Sperlich was fired by Henry Ford II and went over to Chrysler, where he created the K-cars that saved the company, and created the minivans which made the company very profitable. Sperlich went on to become President of Chrysler, was inducted into the Automotive Hall of Fame, and left a lasting mark on the U.S. auto industry. And we here at Autoline salute all the contributions he made.
But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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R.I.P. Hal Sperlich
Trump seems to want Canada and Mexico to ally with China. They would be a much more reliable trading partner than MAGAland. It seems a lot of Trump voters were stupid enough to believe Trump’s claims that tariffs are a tax on other countries, when they are, essentially, a national sales tax on stuff sold in the US. We’ll see if the tariffs are actually put in place, and what reaction would come from the other countries if Trump blatantly violates USMCA, which he was the big champion for.
The K-Car was an amazing platform sharing model. The variety of vehicles that were derived from the K-Car platform was amazing. They weren’t necessary the greatest cars in the world, but I do appreciate how they were able to create so many different designs using the basic K platform.
I hope we’re not going to have 4 years of politics on this site. While we all have agreements and disagreements with politicians I would like people here just to talk about the auto industry and cars in general.
Honda was smart to demand structural changes at Nissan before purchasing them. Something Nissan should have just done in the first place. I am surprised that those changes would be enough for Honda to be interested. I would demand way deeper cuts at Nissan if I was the prospective buyer.
Parts of the K-car were shared with even the first generation minivans, though a lot was different, except for the powertrains. The van had leaf spring rear suspension, and the floor structure, etc. was much different from the cars. K-cars, like Citations never caught on with collectors, though I see an Omni GLH at a show up north sometimes.
I was listening to NPR and host of the show, asked one of their panelist to explain how tariffs work for the listening audience, some of which may be unformulier (me included). Long story short, the commentator indicated that tariffs are not paid by the individual/company sending the merchandise, but the local company/entity that is receiving the imported goods. And it is at the point of entry that the tariff must be paid for product being shipped into a country. So, the tariff is not paid by the seller of the product, it is the buyer that has to pay! As you said Kit, it is a government applied sells tax on it’s citizens for purchasing the merchandise, not the merchant that is doing the selling! As we have seen, its not just on completed vehicles, but also covers the amount of content that makes up the end product as well!
So, all the industries that sent have sent their manufacturing to low cost countries, the new admin just raised the costs to sell those products in your home market. Putting more money into the pocket of the federal government, mind you! That is if buyers continue to buy those more expensive products. What about those groceries that are imported, they’ll get the tariff too, right? Yet, what happen to the new admin making grocery prices go down? It seems there will be a lot of unintended consequences associated with these tariffs, that so many applauded for as the nee President was signing these executives orders into being. Let the lawsuits and legal challenges begin!
Kit @ 1:17, exactly right my friend, almost half of American voters chose the shit show and now they are going to get it. They’ll be the first to complain about it too, especially when it comes to the auto industry, which the shit show will no doubt have an effect on, and which this show is dedicated to informing us about, they are tied together at the hip.
Kit,
Neither the K or X truly caught on with collectors at large, but there are some bright spots. There is a group of persons that like this era of cars in general and belong to Rad-Wood and/or Malaise motors groups. Both of which are large and growing. Radwood has multiple shows per year around the country and the Malaise Motors group is up and coming with an east coast and west coast show currently. Radwood tends to favor cars that are a bit more flashy where Malaise Motors people tend to gravitate to things that are more underappreciated.
in the X-Car line these two groups tend to desire the Citation X-11 and the Pontiac 6000 STE AWD (A-Body with X roots). The Oldsmobile Omega with the rare SX, ES, and sport coupe trim are gaining interest, but mainly because you don’t see them. They are still not worth much, but they are worth more than people would think, especially if it is a super clean low miles high trim unmodified X-Car.
In the K-car space, basically if it was a turbo manual model, it is popular with those groups, especially the radwood crowd. Again, they tend to prefer unmodified super clean and the lower the miles the better. The Turbo-vans and sedans have all at this point been modified to death though. It is very rare to see an unmodified K-Car Turbo and why they are more desired. They still are not worth a lot of money, but their value is surprising.
The Shelby GLHS and Charger, whittier california built versions, are highly desired and pretty expensive to buy with low miles and super clean. However other Shelby variants from Whittier are not that desired. Vehicles like the Shelby Lancer, Shelby CSX, CSX-T, and CSX VNT. I like the Shelby Lancer(whittier built) and even the later Lancer Shelby(Chrysler built) vehicles. They are a family car with some flare and it was done before the Taurus SHO was a thing and way more practical than the Taurus. I also like the CSX-VNT from 1989 basically because it was a variable nozzle turbo before that became a thing in the turbo world and fiber wheels, which have never been seen before or after the CSX-VNT. I absolutely love that the Mustang and Cobra crowds hate that Shelby modified these K-Cars. Even the Shelby Museum struggles to recognize the Dodge period lol.
I hope Ford isn’t giving up on the Lightning and it would make since that they might be looking to wait until after the new F-150 was introduced. Yet, that only works if Ford was planning to have the Lightning as closely related to the new F-Series as the current one. What happen to the T3 (in think that was the code name for the redesign Lightning) electric truck platform that Ford was developing for next generation Lightning?! Certainly, it’s headstart, years of gathered experience and lessons learned for greater efficiency, has put them in a better position to offer a superior product, to meet the newer Silverado/Serra and Ram REV EV pickups where they stand! Then, with the cost of batteries, supposedly, continuing to fall, one would have thought that Ford would be in the driver’s seat (please forgive me), against the competition. I mean, didn’t they just build a new plant to assemble the new pickup?
From my experience dealing with Honda management, they will be looking for a LOT of changes at Nissan before they dip their toe into that quagmire. Which prompts the thought that if Nissan does undertake some of these painful changes to right their ship, perhaps they will no longer need a partner or merger.
I see many parallels between Nissan today and GM before their bankruptcy. It took outside influences to finally bring about the dramatic changes necessary at GM to transform the company into an ongoing business that could thrive. Though some of the negative conditions are different, Nissan’s overall situation has a lot in common with the GM of 2008-2010.
@wmb on import tariffs. You have understood that correctly. Overseas producers sell their products FOB Port of Shipment (Free On Board Port of Shipment). Shipping, insurance, financing, handling at port of entry (unloading, processing, clearing customs, logistics at the port and storage (if needed) are all paid by the buying party. So Walmart, Target, Costco, Apple, whoever it is. Those companies do not swallow those cost, but include those in their selling price, typically with a mark-up.
So yes, import tariffs are paid by the U.S. consumer.
MERKUR DRIVER,
Interesting about all of the performance oriented K-car variants. I had a Spirit R/T, with the turbo III with the Lotus head. It was a cool car, probably the quickest front driver sold at the time, but I’m glad I didn’t keep too long. The heads cracked, and I suspect it would be impossible to find replacements. Even simple parts like a rear hub, for my high volume ’89 van, are next to impossible to find, and most of the ’84-’90 Caravans and Voyagers would have used the same part, regardless of powertrain.
Regarding EV pickups, it seems that, so far, there just isn’t much demand. I know several people with pickups, mostly used for tasks that a van would be better, but none of these people seem to have interest in an EV truck. The one and only EV pickup owner I know has a Rivian, and he never had a truck before. I think he got it mainly for the novelty.
Danny I’m sure no one here is going to say something that’s going to make anyone think. Yep I been wrong this whole time and I’m switching my political affiliation. I don’t think that’s the intention but politics are a huge part of the auto industry so yea it’s going to be mentioned. Especially right now as we go from one administration to one that are essentially polar opposite when it comes to economic policies. I believe the tariffs that Trump is threatening are simply that. He says wild crazy stuff that are the beginning of a much larger picture of negotiations. Like when you go see a guy about a $10,000 used car. You typically don’t start at $9,900 especially if you want to end up at $8000. So you might originally offer $5000. And to some that might seem absurd or crazy and maybe they take it maybe not but that original offer has to get things started. I believe that’s Trump plan to threaten ridiculous things to eventually get what we are after which is jobs coming back into the states and supporting American jobs. Meanwhile people get hung up on the crazy ideas but let’s just see what the final outcome is.
I do like the idea of being able to buy what I want in the future and not some gov mandated EV. So can’t help but feel a little more free than I did.
I had a 1980 Chevy Citation X-11, first year and it had the four banger and four speed; it was fun but really wasn’t very good (sports wise). It was a pretty good family hauler and got plus 30 mpg on road trips (which was pretty good for the time). Neither X nor K, to me, seem collectible but they did bridge the woeful early ’80s to get to better product.
I had a dodge mini van when they first came out. They were very well suited for me and family. Amazing how far reaching the k car platform was.
We’ll see what Trump does. He’s already pardoned his thugs, and isolated the country by withdrawing from organizations that essentially every other country in the world belongs to. He’s trying to single handedly repeal the 14th amendment to the constitution. Anyway, his promised tariffs, anti-environmentalism, etc. will clearly affect the auto industry, in the US and globally. All we can do is wait and see what happens. I doubt if many jobs will come back, except ones where empty facilities are almost ready to go. There is so much instability in things that companies won’t want to spend a lot of money to relocate factories if much capital spending is involved. The promised tariffs are to start Saturday, Feb. 1.
@Lambo on tariffs: I am with you that this is part of haggling for a much better deal. The problem I see is what it does to our reputation as a reliable partner for agreements. The current administration unilaterally revoked the 2004 NAFTA agreement, negotiated hard and agreed with Canada and Mexico on the 2018 USMCA trade agreement. I am expecting that opening up unilaterally an agreement for the second time will make them cautious with us, maybe looking for increasing their trade with other partners. Time will tell. I may be wrong, I have been wrong before.
My minivan weighs under 3000 pounds, with the back seat out, barely more than a current 2-door Mini Cooper. Vehicles have sure gained weight over the years, but recent ones are much more crashworthy.
@Kit on weight gain of vehicles over time: the size creep is amazing over time. My E Class is the same size as the S Class my dad drove fifty years ago.
@Wim, yep, size creep, and weight creep. Honda Civic might be about the ultimate in size creep. A 1979 Civic, which my sister had, is about a foot shorter than a current 2-door Mini, but a current Civic is near the size of a Current C-Class.
The internet tells me that 700,000 US made cars are sold in Canada and 200,000 Can made cars are sold in the US. It sounds like the US is already winning that trade deal. What more could the US want? Also, US corporations already own most of the Canadian auto manufacturing industry. THAT is the place where the US could really lose. If Canadian cars and US cars are not allowed to cross the border, the US companies that produce in Canada would probably be kicked out as well. I’m sure that Honda and Toyota, who both have factories in Canada, would appreciate the US giving them the additional market share. Things might be different in the US, but in Canada, people buy cars they like, from countries they trust, at a price they can afford. At the moment, the US does not meet any of those criteria. It probably is time to give the Chinese companies a try, especially if they will local factories like the Japanese. The US has no RIGHT to the Canadian market, they have to EARN it, no matter what any politician says.
Over-reliance on executive orders is out of control. Biden had EO that mandated 50% EV while the individual inaugurated yesterday killed that requirement. Tough to run a capital intensive business with such flip flopping. Politicians seem to forget about market driven economy & consumers voting with their wallets.
ChuckGrenci, I had an ’86 Celebrity wagon with the same powertrain as your Citation, except that my newer one had TBI rather than a carburetor. It got as good of highway mpg as the Sunbird wagon it replaced, but the “iron duke,” considered to be GM’s best four cylinder engine at the time, was crap. The head of mine cracked at about 60K miles, and that was not uncommon, based on some co-workers’ experiences.
Why is everyone shocked that Trump is doing exactly what he said he would do for years, and it’s that platform that got him elected. Mexico and Canada are wholly dependent on the US and they can cry and whine but they’ll fall in line because 25% tariffs will collapse their economies. Want to be a reliable business partner? Control
Your border. Stop being a Narco state. Take back your citizens who are not here legally starting with the gangs and hard criminals. We’ve had decades and billions of dollars worth of failed efforts to help them in these areas to our continued detriment. Time to try something new.
They will bend the knee before the tariffs have to happen. Trudeau surrendered even before inauguration. And Sheinbaum has already started falling in line. The UAW rank and file understood this and voted accordingly.
Trump saying he would lower, rather than increase prices was a major part of what got him elected. Blatant lies work for winning elections. Also, there is real data saying the anti-trans ads were very effective for Trump.
As far as the tariffs, if they are implemented, they will hurt the Canadian and Mexican economies, and also the US economy. The three country’s economies are very much inter-related, in autos, energy, agriculture and other things, and if Trump unilaterally breaks the USMCA agreement he made a few years ago, everyone will be hurt. Just the threats destabilize things, and display the US as an unreliable trade partner.