AD #2474 – Tesla Names New Chairman, Toyota Turns to Hydrogen for Plants, FCA Gains Most Market Share in U.S.
November 8th, 2018 at 11:34am
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Runtime: 6:26
0:29 China Could Snap Growth Streak
1:12 Tesla Names New Chairman
1:40 Ford & GM Invest in eMobility
2:48 Plastic Nut Wins Automotive Award
3:42 Toyota Turns to Hydrogen for Plants
4:44 Biggest Market Share Gainers in U.S.
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On today’s show… Toyota comes out with a hydrogen furnace… car sales in China could drop for the first time in decades… and why in the world would plastic nuts get a big automotive award? All that and more coming right up on Autoline Daily.
This is Autoline Daily the voice of the automotive industry.
CHINA COULD SNAP GROWTH STREAK
Is the party over in China? We’re not talking about the Communist Party. We’re talking about China’s car market. It’s been the engine of economic growth for the global automotive industry for over a decade, but now Bloomberg says new car sales could be down for the full year. That’s the first time this has happened in over 20 years. And it’s an across-the-board drop, affecting SUVs as well as passenger sedans. Automakers now face mandatory market share goals with electric cars, just as the market is slowing down. But China is considering cutting the sales tax on cars with 1.6 liter engines or smaller to stimulate demand.
TESLA NAMES NEW CHAIRMAN
Tesla named an existing board member, Robyn Denholm, as its new Chairman. She’s an Australian with extensive business experience, especially in the high tech field. But she also worked for Toyota in Australia earlier in her career. Elon Musk had to step down as Chairman as part of the company’s settlement with the SEC, after he tweeted about having the funding to take the company private.
FORD & GM INVEST IN eMOBILITY
Every time we turn around it seems like car companies are going beyond cars. Ford just bought an electric scooter-sharing company called Spin which operates in 13 cities and campuses across the U.S. And remember, Ford already has an e-bike sharing service in the Bay Area, called GoBike. General Motors just announced its building an e-bike and is offering a $10,000 reward to whoever comes up with the best name for it. Automakers want to become mobility companies that offer any kind of transportation, especially for the last mile. Bikes and scooters are part of that strategy.
The Toyota Mirai runs on hydrogen and pretty soon, so could Toyota’s factories. That’s coming up next.
SOMETIMES YOU FEEL LIKE A NUT
Every year for the last 48-years the Society of Plastics Engineers has come together for its Automotive Innovation Awards Competition. So, while it’s obvious that plastics have played a key role in the automotive industry for a long time, there’s still great advancements being made in the field. The Society just announced the most recent winners and here’s a unique application of plastic that caught our eye. FCA is using a self-tapping composite nut on the Chrysler Pacifica minivan. Unlike the metal nut it replaces, the plastic version has self-healing properties that allow it to maintain torque and clamping force, even if it gets stripped. It’s used in 121 locations on the Pacifica, which saves a total of just over 2-pounds and $3.25 per vehicle.
TOYOTA TURNS TO HYDROGEN FOR PLANTS
Toyota produces some very efficient vehicles and soon its plants that make those vehicles will be more efficient too. The automaker has developed the world’s first general-purpose hydrogen burner for industrial use. It figured out a way to slow the combustion process and lower flame temperature, which results in zero CO2 and greatly reduced NOx emissions. The burner will first be used on the forging line at one of Toyota’s plants in Japan and then will replace more natural gas burners at other plants within the Toyota Group.
By one metric Fiat-Chrysler is the best performing car company in the US market, and we’ll tell you why after this.
BIGGEST MARKET SHARE GAINERS
When it comes to figuring out which automakers are doing the best job selling cars, one of the best measuring sticks is market share. It’s so important that automakers fight for every tenth of a percent of share. So let’s look at who’s winning the war so far this year in the American market. Only 7 out of 20 automakers have captured more market share this year, with FCA at the top of the list. It’s gained nearly one point of share, which is almost unheard of. Tesla is next, having picked up half a point. Then come Mazda, Mitsubishi, Subaru, VW and Volvo, which all picked up one tenth of a percent of share. Everyone else either stayed where they are or lost market share.
| 2018 U.S. Market Share Gainers | |
|---|---|
| FCA | +0.9% |
| Tesla | +0.5% |
| Mazda | +0.1% |
| Mitsubishi | +0.1% |
| Subaru | +0.1% |
| VW | +0.1% |
| Volvo | +0.1% |
As you all know, Autoline After Hours comes on later this afternoon. We’re going to have Mike O’Brien, the head of product planning at Hyundai, joining us for that show. Greg Migliore from Autoblog will also be on board. What are the hotspots in the market where Hyundai wants to place its bets? Well, tune in and find out. And if you’d like to ask a question, shoot an email to [email protected], share it on social media, or leave us a voicemail at 1-620-288-6546
But that wraps up today’s show, thanks for watching and we’ll see you again tomorrow.
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Comments (22)
November 8th, 2018 at 12:03 pm
In your Toyota report for future factory efficiency you neglected to detail how and where all this Hydrogen to replace natural gas is to be produced and stored on site.
November 8th, 2018 at 12:17 pm
It’s too bad that the US car makers have pretty much dedicated themselves to making cars and SUVs for the Chinese market and made a conscious decision to neglect their home North American market. Lots of new models “produced in China for the Chinese market”. Now the rapidly growing Chinses market is not growing so fast what do they do now?
November 8th, 2018 at 12:46 pm
2. The US companies are making new models of huge pickup trucks for the U.S. market.
November 8th, 2018 at 12:51 pm
Where does Toyota’s hydrogen come from? Do they have acres of solar panels to electrolyze water to produce it?
November 8th, 2018 at 1:03 pm
The only place I’ve seen so far where hydrogen was a cost-effective source of energy was at a refinery in the Texas City area. General Motors had several semi-trailers parked there, packed with fuel cells that took the “waste” hydrogen byproduct of the cracking process and converted into electricity to help run the place. Before that they just burned it off in a flare.
November 8th, 2018 at 1:11 pm
I suppose that they can glean the oxygen when they are harvesting the hydrogen (if they are using electrolysis) to produce their fuel from water. Their model shows oxygen, not air for combustion; again, needing energy to produce energy (albeit clean energy).
November 8th, 2018 at 1:11 pm
John and Sean,
Kudos for pointing out the importance of market share, where even 0.1% is an important gain (in fact, for luxury cars, even smaller amounts). In fact, every month when I get the sales numbers, I modify my board accordingly. (I have an XL file where I have a page with 1,000 small squares, 40X25, where each square is 0.1%, and I have watched tesla skyrocket from 0.1% a couple years ago (that was its… total market share) to 1.6% (sixteen times as much) in October, and 0.95% from Jan-oct this year, which should climb well beyond 1.1% by Dec 2018. FCA’s market share is 13%, so it started from a far greater base, so its 0.9% gain is actually much less impressive than Tesla’s.
As to the other tiny increases in your table, I hope you will show it for the entire 2018 year in January again, and when you do, I expect Mazda to barely have any gains, probably will lose share from its already pitifully small share, and similarly for Mitsu and Volvo, while Subaru and VW I expect them to hold on to their modest gains.
November 8th, 2018 at 1:15 pm
“General Motors just announced its building an e-bike and is offering a $10,000 reward to whoever comes up with the best name for it.”
OK, GM beancounters, cough up the ten grand, as I have the best name for your silly bike in the Universe:
The short version of it is, “The Distraction”. if you need help to understand it, the long version is,
“the Distraction from making Superior Vehicles Again (like you did in the 20s, 50s, 60s, you know, when they would buy Cadillacs in Europe?)”
November 8th, 2018 at 1:53 pm
So Disappointed! The one things Ford and GM have done for years (build cars and trucks) and they cannot compete with a good electric car, so they decided to compete in the electric bicycle scooter arena?
This seems like a grand idea for someone living in the south or west coast. I just dont see many people willing to do even part of their commute on a bike or scooter when its snowing, raining, or -20 degrees out.
November 8th, 2018 at 2:52 pm
Today I talked to an old friend and colleague from NJ who always had either BMWs or Mercs, and more than a year ago, he sold his 528Ix awd for a 2015 Merc 250 Bluetec, the one with the 2.1 lt diesel which got amazing MPGs from EPA and also in Cons Reports. He told me he once got “average 47 Hwy” (vs the 45 or so observed by CR). I don’t think they offered them in 2016 or later. But separately, I saw there is an E class diesel Plug-in Hybrid which gets some astronomical MPGs in the inflated “rosy scenario” Euro cycle, 166.2 or so, but its EV range is a miserable 14 KM or miles, which means in the winter etc make it 10 or less. And they did not say how much, but if the 7 series plug-in hybrid is any indication, the price should be ridiculously high (either that or the $ has become totally worthless), the 7 plug-in, with a lousy 4 cylinder, goes for $92k base price. That handily beats the ridiculously priced Volvo 4s, by a mile…
November 8th, 2018 at 2:54 pm
PS my friend above told me the 250 bluetec is a much better car than the 528iX (IHO), even tho the bluetec came also in MB-tex like mine, and not in real leather.
BTW, he bought it for a steep $39k, a 2015 he bought in 2016-2017, and had 22k miles.
November 8th, 2018 at 3:17 pm
10 Do you know what kind of fuel economy the that E-Class diesel plug-in hybrid gets if never plugged in? If it gets 40-50% better mpg than a regular diesel E-Class, like a Camry hybrid does over a regular 4 cylinder Camry, it would make sense. With so little electric range, it wouldn’t make sense for very many people, unless it has the regular “hybrid advantage” in mpg, running on liquid fuel.
Plug-in hybrids like Volt and Clarity, with ~50 mile electric range, can make sense for people who could do most of their driving on electricity, but they both get so-so mpg on gas.
November 8th, 2018 at 3:29 pm
https://www.topgear.com/car-news/electric/mercedes-e-class-now-comes-diesel-hybrid
12 The above is the article i saw it, in the Top Gear Website.
“Mercedes … E300de, .. – a diesel plug-in hybrid.
The 194bhp 2.0-litre turbodiesel engine from the E220d is paired with a 122bhp electric motor and 13.5kWh battery, giving a claimed 166.2mpg and thus making the 300de by far the most economical E-Class. And happily it’s not slow – 0-62mph takes 5.9 seconds (or 6.0secs flat for the Estate) and the top speed’s limited to 155mph. Hot hatch performance levels.
However, an electric-only range of 34 miles for the saloon and 32 miles for the Estate (plus CO2 emissions of just over 40g/km) mean the 300de still isn’t economical enough to qualify for the government’s plug-In car grant. The grant was changed last month, and now applies only to cars that can do at least 70 miles under electric power. No PHEV on sale in the UK is capable of such a feat. Yet.”
The EV range is 34 miles and not 14 as I wrote above. Maybe the 7 gets 14. But again this is 34 in Europe, which is more like 18-20 in EPA estimates.
November 8th, 2018 at 3:35 pm
12 I’d think that the Prius Plug-in, esp the present model, for those who can’t recharge a pure EV at home, would be a far more economical solution than the Volt, especially if you factor in the total lifetime cost and not just fuel, as many EV and PHEV buyers do. This would include maintenance, repairs, and resale value.
I also think the E diesel plug-in would be quite expensive and probably they will not bother selling it at all in the US
Last summer I visited very fancy cemetery (almost a museum, all the bigshots are buried there, very interesting historically) in the old country a few times, a close relative is buried there, and once I saw there was a funeral of some (ship) captain who later became a very successful shipowner, and the relatives came in fancy cars, one was a black S 500 or 550 plug-in hybrid, all black with black windows. A good idea if it sits idling all day waiting for the owner to do his errands or her shopping. It was interesting to see the wreaths too, some from London-based marine supplier industries.
November 8th, 2018 at 3:54 pm
12 Thanks for the link.
14 If you are going to do much driving beyond electric-only range, yeah, the Prius Prime (current one) does better than Volt on gas, but has half the electric range. Still, the range would be enough for a lot of people, and the Prime is significantly less expensive than Volt. The first Prius Plug-in was rather lame, very little electric range, and even with a full battery, the ICE would run at anything more than very leisurely driving.
https://www.fueleconomy.gov/feg/Find.do?action=sbs&id=39782&id=39190&id=39882
Yeah, I’d be very surprised if they sold the E plug-in diesel here. I don’t think they even sell the diesel CUV/SUVs in the U.S. any more. Something about cheating?
November 8th, 2018 at 4:23 pm
I’m pretty sure GM can walk and chew gum at the same time: if they want to make an electric bike; good for them. All companies delve into fringe technology from time to time; sometimes they hit and other times it ends up to be an exercise in futility (but you have to think outside of the box so you are poised to find the next new thing).
November 8th, 2018 at 4:56 pm
16 I just hope GM didn’t spend much on the bike, and just rebadged one of the better existing ones.
November 8th, 2018 at 8:28 pm
For the bicycle name:
1) Chevette II
2) Luxury Metro
3) k-Lutz
Bob Wilson
November 9th, 2018 at 7:32 am
Bike name:
Velectra 225
November 9th, 2018 at 7:34 am
Just Velectra for the brand. Velectra 225 is a model.
November 9th, 2018 at 11:40 am
Velectra Grand Sport with fatter tires and a bigger motor
November 9th, 2018 at 1:39 pm
The scooters and bikes make another problem, was in San Antonio a few weeks ago, all downtown and around the river walk streets were these electric scooters. People just used them and left them where they got off. The middle of the sidewalk, at some points you had to go into the steeet to get around them. They litter the whole place like junk. And as most are walking you have these individuals moving at you and coming from behind at great speed and I even saw one hit a man in a congested area on the sidewalk. Much has not been worked out with these things.