AD #2400 – Trump Backs Off on EU Tariffs, Toyota Sees Profit in Fuel Cells, Daimler Splits into Three Separate Units
July 26th, 2018 at 11:28am
Runtime: 7:15
0:30 Trump Backs Off on EU Tariffs
1:03 Toyota to Expand Production of Fuel Cells
1:52 Ford F-150 Limited Gets Raptor Engine for 2019
2:56 Would Americans Buy a Chinese Brand Vehicle?
3:49 Waymo Expands in Phoenix, Arizona
4:25 Mercedes A-Class Sedan Coming to America
5:37 Daimler Splits into Three Separate Units
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On today’s show… Trump says he will not slap higher tariffs on European cars… a lot of Americans say they would buy a Chinese car… and you can soon order a Ford F-150 pickup with a Raptor engine. All that and more coming right up on Autoline Daily.
This is Autoline Daily the show for enthusiasts of the automotive industry.
TRUMP BACKS OFF ON EU TARIFFS
Good news for European carmakers. In a meeting yesterday with the President of the European Commission, President Trump agreed to not impose tariffs on imported cars and parts. In exchange, Europe agreed to buy more liquefied natural gas from the U.S. and lower barriers for American soybeans. Reuters also reports that the Trump Administration will “reassess” aluminum and steel tariffs enacted earlier this year. That’s good news for automakers who have seen their profits crimped by higher steel prices.
TOYOTA THINKS FUEL CELLS WILL TURN PROFIT
Toyota wants to expand production of fuel cell vehicles, or FCVs. In fact, it hopes to introduce a range of FCVs starting in 2025, from SUVs to commercial trucks. While experts generally see FCVs as unviable, the Chief Engineer of the Toyota Mirai sees things differently. In an interview with Reuters, he said that by cutting production costs of FCVs and moving them from limited production to mass production status, Toyota could turn a solid profit on them. This means using less of the expensive materials, like platinum, that it currently use in FCV production. Toyota also believes the range of the Mirai could be increased to 700 kilometers, that’s about 434 miles, by 2025.
F-150 LIMITED GETS RAPTOR POWER
The top-of-the-line F-150 Limited is getting the Raptor V6 for 2019. The idea behind the move is that customers want Raptor power, but also want something more refined. The 2019 Limited will sport 450 horsepower with 510 lb.-ft of torque. Like the luxury truck that it is, the F-150 Limited will feature a suede headliner, massage seats, as well as adaptive cruise control that can bring the truck to a complete stop in traffic. The 2019 F-150 Limited will be available later this year.
Want to go grocery shopping in an autonomous car? Then Waymo has a ride for you. And that’s coming up next.
WOULD AMERICANS BUY A CHINESE BRAND CAR?
Would American consumers buy Chinese cars? A new survey says at least one out of four Americans say yes. The car shopping website Autolist did the survey. Of the over 1,550 people it talked to 28% said they would consider buying a Chinese brand vehicle. And no surprise, 40% of those people said price was leading reason why they would. 35% said they wouldn’t want a Chinese vehicle because of questions over reliability, safety, and a lack of a dealer and service network. The survey also showed that the least likely to consider a Chinese vehicle own an American brand vehicle, while owners of Korean vehicles were the most likely. But this does highlight some of the areas Chinese automakers should focus on and the areas where they need to work harder.
WAYMO EXPANDS IN ARIZONA
Waymo announced it will give rides to people in Phoenix, Arizona who order groceries at Walmart.com. They place their order, then get a ride to the nearest Walmart as their order is being prepared, and then get a ride back home. Waymo is also growing its partnerships with Avis and AutoNation. Avis, which already refuels and charges Waymo vehicles, will provide autonomous vehicles to help customers pick up or drop off their rental cars. And AutoNation will offer them to people who are having their personal vehicle serviced, rather than giving them a rental.
MERCEDES A-CLASS SEDAN COMING TO AMERICA
Mercedes-Benz just announced it will offer the A-Class sedan in the American market. It will replace the CLA, as it’s nearly exactly the same size. There will be a next generation CLA, but that will likely get bigger. Power for the A-Class comes from a 2.0L turbo 4 that makes 188-horsepower and gets mated to a 7-speed DCT. All-wheel drive is optional. Two 7-inch display screens, one for the instrument cluster and one for infotainment are standard, but the option for two 10 and a quarter inch displays is available as well. The new A-Class goes on sale in the U.S. later this year, but no pricing yet.
Speaking of Mercedes, it’s parent company Daimler is splitting itself into three separate companies and coming up next we’ll tell you why.
DAIMLER SPLITS INTO 3 SEPARATE UNITS
In just another example of how the move to mobility services is changing the industry, Daimler announced it is splitting into three separate business units. Under a plan called Project Future, the three units are Mercedes-Benz Cars and Vans, Daimler Trucks and Buses, and Daimler Mobility. Each of these units will be legally independent companies, which will be empowered to enter partnerships with other companies on their own. To get German unions on board, Daimler is promising job security for factory workers until 2029. Each of these companies could have their own stock, so this could also be a way to unlock shareholder value. The Chinese company Geely recently bought nearly 10% of Daimler’s stock and it will be interesting to see if this move dilutes Geely’s influence over the company.
Speaking of autonomous cars and mobility services, how’s that going to affect the performance market? That’s going to be one of the topics on Autoline After Hours later this afternoon. We’re also going to preview some of the historic vehicles that will be at the Concours of America that takes place this weekend. So join John and Gary as they look to the future and keep an eye on the past.
But that wraps up today’s show, thanks for watching and please join us again tomorrow.
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Comments (19)
July 26th, 2018 at 12:03 pm
For EV cars…how will wall street market these cars on TV. No Zoom Zoom or Dodge Hell Cat engine sounds in the ads! Can’t sell handling on mountain roads without having a charging station in the background. maybe “brag about the range”.
July 26th, 2018 at 12:09 pm
I personally support the idea of Fuel cell vehicles, from what I know about them. There is still the issue with refueling stations, and supplying enough hydrogen to refuel the growing number of FCVs.
July 26th, 2018 at 12:18 pm
Maybe you interpreted the President’s remarks in some other way, but I saw him say that tariffs would be removed or negotiated on “NON automotive products”. I take that to mean tariffs on automobiles and parts are still going to happen. You may want to listen to the remarks again. Did I get it wrong? I checked CNN and ABC News to confirm.
July 26th, 2018 at 12:22 pm
Don I heard the same thing , non automotive products.
July 26th, 2018 at 12:26 pm
Not really a revelation about Chinese cars . There is always someone who will but what is cheap. It happened with Japanese cars in the 70s and 80s, and Korean cars in the late 80s and 90s. We all can see where those prices trend to over time. Come in cheap , establish yourself and slowly ramp up your prices until you are equal what everyone else is doing. I see the Chinese following the same model if they come over. I’ve really been surprised that they haven’t yet. Maybe it has to do with Safety and/or emission regulations.
July 26th, 2018 at 1:32 pm
People don’t mind buying iPhones, and pretty much every other electronics gadget from China, so I don’t see the mass market shunning Chinese cars, if they are competitive, overall. Most of us “enthusiasts” will feel differently for some time to come.
Toyota says they will be able to lower production cost of fuel cell cars, but I still don’t see the point, when there is no fuel, and no fueling stations. It’s not like you can “fuel” your fuel cell car for your daily commute overnight in your garage, like many people can with plug-in cars.
July 26th, 2018 at 1:58 pm
I think fuel cells are a non-starter. Hydrogen is incredibly dangerous stuff. It has very wide explosion limits. By comparison, petroleum (gasoline, diesel, kerosene) is very safe. A saturated petroleum vapor in air (such as in a fuel tank) will not explode.
Remember that Kelly Johnson and the Skunk Works engineered a hydrogen-fueled aircraft decades ago, but they could not figure out a safe infrastructure to support it.
July 26th, 2018 at 3:28 pm
We know Sean is a mildly scraggly very casual kinda guy, but enuf is enuf. Haven’t we now seen him multiple days wearing his fav small-check shirt with HOLES at the collar?! Come on, Blue Sky, give him $50 for a new fav shirt.
July 26th, 2018 at 3:47 pm
I am Canadian and I have been driving a Buick Envision, built in China for close to 3 years. Rides like a dream. Smooth as silk on the highway. Great quality and workmanship. Would buy another in a heartbeat. Got all the options as the BMW’S and Mercedes for a lot less money.
July 26th, 2018 at 4:25 pm
I probably won’t live to see it , since I’m just 2-1/2 yrs short of ninety , but I firmly believe that Nissan’s 48v batt & run as needed gas engine generator will someday be the most common driveline.
When I was learning the trade, sparkplugs had to be sandblasted at least 4 times during their 10kmile lifetime , wheel brgs had to be hand packed at least every 10K miles. Car’s usable lifetime never reached 100 k unless outstandingly maintained , gas cost 12 cents per gal & price wars sometimes erupted at 1/4 cents per gallon
July 26th, 2018 at 4:42 pm
Also , cars lifespan was frequently determined by rustout , because any metal that couldn’t be seen was not painted , including frames. Miami’s salt air was deadly
July 26th, 2018 at 4:46 pm
10 My friend’s Sunfire with 240K miles has the original plugs, and still runs like new. They have been removed and re-gapped once, but the gap had widened less than ten thousanths, as I remember, after about 180K miles. It’s amazing how much progress has been made. The elimination of lead in the gas, and use of iridium tipped plugs have made the plugs last “forever,” and a combination of other things have made the other aspects of cars much, much better, even cars that never got much respect, like Cavalier/Sunfire.
As far as the (not 48 volt) Nissan E-power taking over the world….
July 26th, 2018 at 4:50 pm
11 The rocker panels in the 1957 Chrysler, in Indiana, rusted out in about 5 years. Now, most vehicles go 20 years before rusting too badly, even with obscene amounts of road salt. The coatings are much better, and also, car bodies are better designed to avoid trapping water/salt where it will never dry.
July 26th, 2018 at 4:52 pm
Those price wars are the reason you see the 9 tenths part on todays price signs
July 26th, 2018 at 6:52 pm
The 9/10 cent on gas prices is silly, but is still universal. Unfortunately, my once-favorite app for checking gas prices, gasbuddy, no longer shows the .9 cents. There is no way of knowing if $2.56 means $2.559 or $2.569, so the app is now almost useless.
July 27th, 2018 at 7:53 am
The F150 I’d like to see is a Raptor V6 powered Lightning. Regular cab , short box , 2WD drive performance sport truck. Considering the following the Lightning has and the value that they seem to be able to keep nearly 20 years on is impressive. Outside the Raptor , what F150 will people even talk about in years to come. Seeing as Ford is always trying to expand the F150 sales and all the parts already exist I don’t know why they wouldn’t do it. Make them a limited edition , say capped at 1500 trucks a year with dash plaques stating the truck # .
July 27th, 2018 at 8:17 am
16 As people here well know, I am not a big fan of trucks, but a college friend had one that I liked, an early Lightning, with the supercharged 5.4. It was compact, by today’s standards, with standard cab and short box. It was quick, and handled well, for a truck, being lowered rather than being lifted, as the fad today. Its being RWD added to the fun.
July 27th, 2018 at 10:41 am
I’m fine with Chinese vehicles being sold here as long as they has a similar tariff and are limited on quantity like US cars have been in China. Oh and if they want to build any plants here they need to partner with an US company.
July 27th, 2018 at 1:05 pm
#15 – Kit – I believe Gas Buddy meets my needs – I’m not too concerned about whether it’s @2.559 or $2.569. More concerned about $2.56 vs $2.86. & agree with you that the $0.009 in the price is ridiculous although it’s a holdover from pricing in general in the U.S. – Ex $9.99 instead of $10.00. Have a good weekend.