This is Autoline Daily reporting on the global automotive industry.
GEELY NEARING DEAL TO BUY STAKE IN SMART
Chinese automaker Geely is once again adding to its automotive empire. The Financial Times reports that the company is nearing a deal to buy a 50% stake in the smart brand from Daimler. The deal is expected to be announced at the Shanghai Auto Show in April according to sources. This strengthens the tie-up between Daimler and Geely. Last year, the Chinese automaker bought a 10% stake in Daimler to become its largest shareholder. And this just adds to the portfolio of brands Geely is amassing. It owns Volvo, and has stakes in Volvo Trucks, Lotus, Proton, the company that makes London cabs and Terrafugia, a company developing passenger drones.
RENAULT WANTS TO CREATE MEGA AUTOMAKER
And speaking of acquisitions, Renault wants to create an automotive powerhouse. The Financial Times reports that the French automaker wants to restart merger talks with Nissan within the next 12 months and then acquire Fiat-Chrysler, which would easily make it the largest automaker in the world. The combined companies would have the capacity to build 15 million vehicles a year.
And we’ll be back with more right after this.
VW PARTNERS WITH AMAZON TO IMPROVE PRODUCTION
In order to help streamline its manufacturing process, Volkswagen is teaming up with Amazon to create a cloud network for its factories. The Volkswagen Industrial Cloud will combine the data of all machines, plants and systems from all of the Group’s 122 sites around the world. It will help to detect supply bottlenecks, process disruptions and optimize the machinery and equipment in all its plants. VW says in the future it could also integrate the 1,500 suppliers in its global supply chain.
CHINA SLASHES EV SUBSIDIES
Uh oh! Bad news for automakers in China. The government is slashing subsidies for EVs. Battery electric vehicles with a range of about 250 miles or above, now qualify for a subsidy of $3,700, which is half of what it used to be. And to earn any subsidy, an EV must have a range of about 155 miles, which is up from 93 miles. On top of that, the Chinese government is also encouraging local governments in the country to end EV subsidies, including for buses and trucks. China is cutting subsidies because it’s concerned that automakers are becoming too reliant on them and want companies to innovate new battery technology, rather than using subsidies to boost sales. Automakers have a couple of choices. If they’re concerned about profit, they can keep prices of EVs the same, but that will cost them sales. Or if they want to maintain sales growth, they can lower EV prices but that will hurt their profits. Either way, it’s a lose-lose situation for them.
MERCEDES REVEALS AMG A 35 SEDAN
Mercedes-AMG has revealed the new A 35 Sedan. It shares many of the same components with the hatchback version that we reported on in September of last year, so here’s a quick refresher. Its 302-horsepower 2.0L engine is mated to a 7-speed dual clutch transmission and all-wheel drive. That helps the A 35 move from 0 to 60 in 4.7-seconds. A reinforced underbody and sportier suspension improves handling and it also features larger, more aggressive brakes. The interior rocks Mercedes’ new infotainment system and customers can even choose between three AMG display styles for the instrument cluster.
LINCOLN CORSAIR TO DEBUT IN NEW YORK
Back in June of last year we ran a story that the replacement for the Lincoln MKC would be renamed the Corsair. And now we know when the new utility vehicle will make its debut. The Corsair, which is based on the Ford Escape, will be unveiled at the New York Auto Show on April 17th. There’s several possible origins for the name. Ford made an Edsel Corsair in 1958 and there’s even a World War II fighter plane and pirate ship with the same name.
HYUNDAI NAMES NEW CUV
And speaking of new names at the New York Auto Show, Hyundai revealed it will show off an all-new crossover, called the Venue, which will be the smallest CUV in its lineup.
And with that bit of news we wrap up today’s show. Thanks for watching and we’ll be right back here again tomorrow.
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Comments (31)
March 27th, 2019 at 11:49 am
Kind of a continuation from yesterday, here’s some info about Feb. 2019 sales in Europe by brand and model, with a little Tesla 3 discussion.
https://www.best-selling-cars.com/europe/2019-february-europe-new-car-sales-market-analysis/
March 27th, 2019 at 12:08 pm
I think that China’s reduction/removal of subsides will be a litmus test to see if the pure electrics can stand on their own.
March 27th, 2019 at 12:12 pm
1 interesting info and discussion. Unlike that comment in Top Gear, this says Feb was the first full month for the Model 3 in Europe.
“…This increase can be explained by the introduction of new models – most notably the Tesla Model 3. The hotly anticipated car excelled during its first full month on the European market and became the best-selling BEV. The Model 3 quickly outsold other big players like the Nissan Leaf and Renault Zoe, despite being more expensive and only available for a short amount of time…”
Same pattern as in the US, buyers are willing to spend $100k and now $50k for a tesla but not $30k for a Bolt or Leaf.
” Felipe Munoz, JATO’s global analyst, commented, “The performance of the Model 3 is remarkable, given we normally don’t see this kind of result until four or five months after a new car has hit the roads.”
It’s also notable that most of the Model 3’s volume in February came from private registrations, which breaks the usual trend of a new vehicle’s volume being made up of business/fleet registrations.”
March 27th, 2019 at 12:18 pm
in the other news:
Geely buying part of the failed (again and again, for almost 20 years now) “Dumb”. Geely is as attracted to failed brands and makers as some types of flies are to excrement.
Chinese EV makers. I would not be so pessimistic. Just because the subsidies were reduced, this does not mean it is a lose-lose situation. Necessity is the mother of invention. They can do what Tesla (which is also a major player in China, and will be even greater) did in the US to profitably make an BEV and not visit its cost on the shoulders of gas and diesel SUVs and Pickups, as Lutz recently suggested in AAH.
China has already invested billions in EV infrastructure. It has twice the number of superchargers that the US has, and by now it may have more superchargers than gas stations. Plus its 100s of polluted big and huge cities (1 to 25 million people in each) desperately need to replace their gas and diesel traffic with EVs.
March 27th, 2019 at 12:22 pm
Is this AMG A class RWD? If not, I will never be interested in it, even if it is AWD or 4WD and not just FWD.
Its interior is kitchy. Not a single square inch of wood veneer, the tyrrany of grays and silvers, most of which silvers seem to be fakes (plastics pretending to be chrome or aluminum). Or at least they look like it.
Still, exterior-wise the car looks great, any S class sedan, not just the AMG. A black one was parked next to me the other day, it looked good. But of course, “all hat and no cattle” as they say in TX.
March 27th, 2019 at 12:23 pm
correction- tyranny, of course, above in 5.
March 27th, 2019 at 12:35 pm
5 The AMG A-Class would be AWD. The whole A-Class line is transverse engine, FWD-based.
March 27th, 2019 at 12:39 pm
another correction in 5, not “any S class” but “any A class”
March 27th, 2019 at 12:51 pm
4 Smart is now mostly a maker of tiny BEV city cars. They are sold only as EVs in the US and Canada. The base price is ~$24K, so it is the cheapest new EV available, for those who don’t want want much range or cabin space.
March 27th, 2019 at 12:51 pm
It seems like every week Autoline Daily is reporting that China is increasing or decreasing EV subsidies to stimulate or deaden volume. How could all those EV manufacturers (including Tesla) ever put together a business plan to justify doing business there when the China government could make or break you with one stroke of a pen?
March 27th, 2019 at 1:26 pm
1 another noteworthy item in this link is how Germany seems to finally get up to speed on EVs, it had a 81% increase of some sort. Norway is the most BEV-friendly place everywhere, but Germany has 20 times Norway’s population and will be much more important in future BEV sales. Esp. if VW delivers on its ambitious plans.
March 27th, 2019 at 1:45 pm
There was also a Ford Corsair produced in the U.K. between 1963 and 1970. It was not a successful model and was discontinued when the mark 3 generation Cortina (Taurus in Germany), which was of a similar size, was introduced. https://en.m.wikipedia.org/wiki/Ford_Corsair
March 27th, 2019 at 1:45 pm
https://en.m.wikipedia.org/wiki/Ford_Corsair
March 27th, 2019 at 1:57 pm
12 I remember seeing a few of those when I was in Scotland in the navy in 1970.
March 27th, 2019 at 2:08 pm
14 I remember them too, surprising how lightweight they were, lighter than a tiny Miata. The Cortina did not look much different.
March 27th, 2019 at 2:15 pm
I remember saying several times in this forum that BEVs (compared to ICE cars) are the future. I just came across this USA today article:
https://www.usatoday.com/story/money/cars/2019/03/18/jay-leno-electric-cars-are-future/3175820002/?fbclid=IwAR1mmuFvsIjS6CUF91JIZSvdh1exzEJGN86GQ517cvVVz44_Zdcca3dLCEg
Where Jay Leno, a huge car collector and enthusiast, says exactly the same thing.
March 27th, 2019 at 2:19 pm
“I have a Tesla Model S. That’s the future,” Leno told USA TODAY.
but he made another prediction that I think has zero chance:
“I predict a child born today, most likely by the time they’re 18, may not have ever ridden in an internal combustion car. I think electric will be the future.”
there are a billion ICE cars on the planet now. I doubt they will all be gone in 18 years, even if no new ones were produced.
March 27th, 2019 at 2:37 pm
https://www.youtube.com/watch?v=LoFVO31CbE0
Just saw this excellent 13 min video of Jay’s Model S. The huge screen is amazing. Young (and older) people who play video games will feel right at home. Everything is controlled from the giant touchscreen. Best to watch it and learn. Jay’s guest is Franz von Holzhausen, the designer Tesla hired away from Mazda.
March 27th, 2019 at 2:40 pm
From what I can find, the Corsair was, essentially, a stretched, and somewhat restyled Cortina. The Corsair had a pointy cornered front end, a little like an early ’60s Thunderbird I’m thinking of, maybe ’61.
I found a couple magazine articles about the Corsair, and the writers didn’t like the then-new Essex V-4 very well, saying it was noisy, thirsty, and rough idling. That is surprising, considering the engine it was replacing was the nothing-special Kent engine used in early Pintos.
March 27th, 2019 at 3:03 pm
17 Yeah, Jay is way off on that. Maybe a child born in 50 years would ride in an ICE car only as a “special experience,” like now riding an an airplane with a radial engine.
March 27th, 2019 at 3:06 pm
12. I believe you meant Taunus, not Taurus.
March 27th, 2019 at 3:25 pm
21 According to wikipedia, the mid-1960s Taunuses were FWD. I always assumed they were RWD, even though I saw a number of them when in Scotland in the navy.
March 27th, 2019 at 3:32 pm
9
…or dignity.
March 27th, 2019 at 5:41 pm
23. Come on. The smart EV is the ultimate, dignified golf cart.
March 28th, 2019 at 6:06 am
Sometimes personal experience can give a clue about how a company, Tesla, deals with their customers who drive commerce:
Feb 28, I ordered the cheapest, $35k Model 3 and expected to finance $22.8k after the Prius trade-in. Then Friday, Mar 22, I got some confusing SMS updates and a “contact follow-up” call from the Nashville TN Tesla Store.
Monday Mar 25, I had a conference call with my banker and Tesla sales in Nashville. My Model 3 order was upgraded to the next trim for less money, $21.9k, and the bank cut a check.
Tuesday, my wife and I drove the Prius to Nashville and returned in our Tesla Model 3 with a 7 day, 1,000 mile, money back guarantee. Since then, I’ve been delightfully testing the car which has met and exceeded our expectations.
Our last test will be a 514 mile, round trip and over-night to a Tunica casino (see link.) We will visit three SuperChargers and try Tesla camping with her pet dogs to complete our 7 day, 1,000 mile, Tesla test drive.
So far, this has been one of my best car purchase experiences. The only ‘dealer’ time was to hand them the check, Prius key fobs, sign the paper work, and drive home. The car handling and driving performance remains delightful … especially at traffic intersections.
March 28th, 2019 at 9:45 am
25 I assume you will keep your Model 3, but if you returned it, how would things work? Could you get your trade back? Could you get your sales tax back?
March 28th, 2019 at 10:26 am
18 In this video Jay asks the Tesla designer (Franz) how long the batteries will last, 8 -10 years? And he answers “10 years”, which would be too short for me, who usually buy fully depreciated cars that are already 7-9 years old, and they don’t talk about how much a replacement battery would cost (I understand you may not need to replace the whole thing, they come in small modules, each being 50 laptop batteries.
The above leads to a Musk tweet I saw yesterday, he may have written it long ago, before the Model 3 was available, in which he said that, unless you need a smaller car than the Model S, a used Model 3 is a better car/deal/whatever.
(I agree with him on that, conditional on replacement battery cost. And if you saw the 13 min video at Jay Leno’s, you’d agree too)
March 28th, 2019 at 10:52 am
27 Based on my experience with laptop and phone batteries, I’ve thought all along that battery life could be an issue. I’ve never bought an extended warranty or leased a car, but with the possible need for a $25K battery, I might be open to both, if I wanted an EV.
March 28th, 2019 at 12:01 pm
28 We now have 6 and 7 year old Model Ss and their used prices are very strong. If battery was a big issue they should be lower than same-priced ICE prices, but they are higher. Some of this may be due to the ability to replace only the bad 50-battery blocks and not the whole huge battery?
March 28th, 2019 at 12:24 pm
29 We shall see. There still are a lot of unknowns on battery life, with the oldest volume produced EV’s with lithium batteries being only, what, 15-17 years old.
March 28th, 2019 at 2:09 pm
From the Sandy Munro battery tear down, I seem to recall the Model 3 modules were very large with hundreds or perhaps even a thousands or more cells. Also, as the modules get old, all of the modules may have to be replaced at the same time as there is a certain amount of “matching” that has to be done so you may not be able to replace just one module and have it play well with the others.