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Runtime: 8:58
0:00 Audi Cutting Jobs After Weak 2024
1:58 Honda Getting Batteries from Toyota
2:55 NIO & CATL Form Battery Swapping Standards
4:56 Impressive Performance from BYD’s New EV Platform
5:59 Xiaomi Raises Sales Forecast by 50K Units
6:40 China Exports Growing Rapidly
7:35 Design the Next Chrysler of the Future
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
AUDI CUTTING JOBS TO CUT COSTS
2024 was a rough year for Audi. The brand sold 1.67 million vehicles last year, which was a drop of nearly 12%. Electric vehicles fared a little better, but sales still fell almost 8% to about 164,500 units. And even when you look at the entire Audi Group, which also includes Bentley, Lamborghini and Ducati, sales were down 11.7% in 2024. Only Lamborghini saw its sales and profits go up last year. So, with overall sales tumbling, revenue was dragged down by just over 7.5% to 64.5 billion euros. The Group’s operating profit hit 3.9 billion euros, a drop of almost 38% and its net profit totalled nearly 4.2 billion euros, which was down by 33%. Like me, you don’t have to be a finance wizard to know that wasn’t a good performance. So, in an effort to turn things around, Audi is making a number of changes. While the company is investing 8 billion euros in its German manufacturing sites and extending a job protection plan for German union workers until 2033, Audi will cut up to 7,500 jobs in indirect areas by 2029 and look for ways to reduce the workload with digital solutions. It’s also reducing bonuses for board members and profit sharing for employees. In the medium-term, Audi expects these changes to save it more than 1 billion euros a year. That’s part of the reason it’s forecasting to earn back most or all of the revenue that it lost in 2024. The other part is a slew of new models launching over the next few years, especially in the U.S. and China.
HONDA GETTING BATTERIES FROM TOYOTA
Toyota’s nearly $14 billion battery plant in South Carolina, won’t just be supplying its own electrified vehicles. The company broke ground at the site in 2022 where it will make up to 30 GWh of batteries a year for both hybrid and pure electric vehicles. Shipments of those batteries start next month and according to a Nikkei report, Honda will be one of Toyota’s customers. Honda currently uses batteries for its hybrid vehicles that come from Japan and China, which could put it at risk of getting hit with additional tariffs under the Trump Administration. So, that’s why it’s turning Toyota, who is also getting a large contract out of the deal. Last year Honda sold a little over 300,000 hybrids in the U.S. and while its EVs are currently made by GM, Honda plans to start making its own electrics in the U.S. soon, so there’s the possibility for the partnership to expand even more.
NIO & CATL TO FORM BATTERY SWAPPING STANDARDS
We think this is big news for the world of battery swapping. In our opinion there are really only two players in battery swapping, NIO and CATL. And now they’re coming together. CATL is investing over $1.7 billion into NIO to help grow its battery swapping network. The two companies are also working to develop technical standards for battery swapping technology or in other words, making a single battery pack that can fit into a full range of products. Some of this will be based on CATL’s new Choco battery, which is specifically designed for swapping. NIO already has the biggest network with over 3,100 swapping stations and partnerships with a bunch of other automakers, including Changan, Geely, Chery, JAC Group, GAC, FAW and Lotus.
IMPRESSIVE PERFORMANCE FROM BYD’S NEW EV PLATFORM
BYD unveiled a new platform that it says can charge an EV just as fast as you can fill a car with gas. Called the Super e-Platform, it’s a 1,000-volt architecture with a peak charging speed of 1,000-kW, which provides 400 kilometers or 249 miles of range in just five-minutes. For comparison, Tesla’s Supercharger can add 275 kilometers or 170 miles of range in 15 minutes of charging. And the all-new Mercedes that was revealed last week, which rides on an 800-volt architecture, is capable of adding 325 kilometers or 201 miles in 10 minutes of charging. BYD plans to install 4,000 chargers across China to accommodate vehicles with the new platform. And in addition to fast charging, the new platform has impressive performance. BYD says models are capable of hitting 100 km/h in just 2 seconds.
XIAOMI RAISES SALES FORECAST BY 50K UNITS
We think Xiaomi’s growth has been nothing but impressive. The smartphone maker only started selling vehicles about a year ago, but it already delivered its 200,000th car. And that’s with just one model in its lineup, the SU7 sedan. Its second model, the YU7 SUV, goes on sale this summer and Xiaomi must feel confident about it because it just raised its sales forecast for the year by 50,000 units to 350,000 vehicles. And thanks to those booming sales, Xiaomi’s revenue in the fourth-quarter surged almost 15% to more than $15 billion.
CHINA EXPORTS CONTINUE TO GROW RAPIDLY
Chinese car exports have grown significantly the last several years and they’re expected to continue growing through the end of the decade. In 2020, Chinese automakers exported fewer than 1 million vehicles according to the China Association of Automobile Manufacturers. But last year exports hit 4.9 million vehicles, an increase of 20%. And while Europe and the U.S. are concerned about Chinese-made EVs and have slapped tariffs on them, the majority of exports, 80%, were gas-powered vehicles. And thanks to big growth in areas like Africa, the Middle East, Latin and South America, global market share for Chinese automakers outside of China is expected to reach 30% in 2030, up from 3% last year. And in Africa and the Middle East alone, the share is forecast to hit 39% by that time.
DESIGN THE NEXT CHRYSLER OF THE FUTURE
Stellantis is kicking off its annual Drive for Design contest for high school students in the U.S. The automaker is asking students to design a Chrysler vehicle of the future. Stellantis will post weekly updates on social media and wants final designs submitted by April 25. The grand-prize winner receives a summer internship at the Ram Truck design studio, the chance to be a student judge at the EyesOnDesign car show, an Apple iPad and more. Two additional finalists will also be selected and win prizes. If you or someone you know might be interested, visit StellantisDriveForDesign.com for more details
And that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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China car exports had increased a lot after 2022 because of the exponential increase of its exports to Russia, which was punished by sanctions for its invasion of Ukraine,
Many Russians who bought BMWs, Audis and Mercs had to grudgingly buy Chinese for three years now.
And they are NOT happy with that, they view the Chinese vehicles with contempt compared to the German imports they were used to.
This could reverse 100% when and if those sanctions are lifter, if an agreement is reached and the war ends.
In addition, China’s economy has huge problems recently. Google them.
It’s not only the Chinese autos that are looking good their motorcycles are also starting to look like the real deal. CF moto has some really nice looking bikes and a 5 year warranty.
I went to the Audi website to determine if there was a product reason for their sales woes. I found a plethora of vehicles more expensive than their competition and fell asleep half way through their product offerings page. That tells me that they have product problems at Audi. I don’t think it is a product performance issue. I think it is a product design issue as everything there was about as exciting design wise as a paper clip. The Audi Q3 photo on their website was funny though. It was obviously computer generated and the front wheel was detached from the rest of the car. Kind of sloppy work for a car company that wants to sell vehicles above the cost of their competition.
While Xiaomi’s sedan reminds me of the Porsche Taycan, their second vehicle, the SUV, puts me in the mind of the Ferrari SUV.
Audis are like Mercedes in that once that warranty is up, you’d be wise to get rid of it fast. Lack of longevity and scary repair costs are their Achilles heel. Think about it, how many 10 year old Audis do you pass daily compared to GM, Honda, Toyotas of the same vintage?
And since they’re owned by the simpletons at VW, I applaud hearing that financial troubles have forced them to pursue layoffs.
I would expect Chinese car exports to continue to grow, especially to countries that don’t have a home grown auto industry. With tariffs between the US and EU growing all the time, both groups are less reliable suppliers than they have been in the past. The most reliable and least expensive suppliers are now in China. Especially if Chinese suppliers are willing to built or expand local assembly plants. Best of all, you can still get American or European brands if you want, because those brands have JV plants in China too! It’s win-win for consumers in South and Central America, Africa, Middle East, Australia and South Asia. The US government is shooting its own foot (and Europe’s) for future exports to 3rd countries.
@Regulus “And they are NOT happy with that, they view the Chinese vehicles with contempt compared to the German imports they were used to. ” You said a mouthful there. Not specifically about Russia, but there seems to be significant discontent with Chinese-built cars by Europeans who purchased them.
https://www.google.com/search?client=firefox-b-1-d&q=buyers+of+chines+cars+in+europe+experiencing+quality+issues
When and if Russia’s sanctions are lifter, the 600,000 a year Chinese imports in 2022-24 will be severely curtailed. This will further hit the Chinese economy, whose drop in internal demand for cars (after several strong years) was offset by the huge Russian chinese car imports It is not rocket science.
All about the Chinese car export situation.
https://rhg.com/research/from-fast-lane-to-gridlock-have-chinese-car-exports-peaked/
Car sales that are affected/inflated by sanctions needs to be viewed in context. As mentioned already, if those sanctions are lifted China could see a drastic change. Much like EV sales and when you take away all the incentives you start to see the true interest. Government and economic factors will constantly alter the auto industry, but I believe the sales forecasts and trends should at least accompanied with a disclaimer.
So again, I guess the tariffs are working as Honda will be buying its batteries from Toyota that are made here in the states. Providing more jobs and revenue right here. Yet the whinners will whine.