AD #2757 – Mercedes EQC Hurt by Battery Shortage; Cybertruck’s Paper Instrument Panel; GM Improves Trailer Braking
January 23rd, 2020 at 11:57am
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Runtime: 8:40
0:07 Mercedes Slashes EQC Production Due to Battery Shortage
0:52 Canada Slaps Volkswagen with Diesel Fine
1:26 Jeep & Suzuki Diesels Exceed EU Limits
1:49 Tesla Cybertruck’s Paper Instrument Panel
2:57 Disengagements Not a Good Way to Measure AVs
4:13 China’s AIWAYS Puts Pressure on European Automakers
6:01 Consumers Not Willing to Pay Much for Technology
6:45 Bridgestone Develops Airless Tire for Commercial Trucks
7:27 GM Concept Improves Trailer Braking
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This is Autoline Daily reporting on all aspects of the global automotive industry.
MERCEDES EQC HURT BY BATTERY SHORTAGE
Mercedes is having a tough time with its EQC electric car. Last year it planned to sell 25,000 but was only able to build 7,000. Germany’s Manager Magazin reports the company has been forced to slash production in half this year due to a shortage of battery cells from its supplier LG Chem. Mercedes planned to build 60,000 EQC’s this year but now will only make 30,000. And this is bad timing, since the company needs to hit stricter CO2 targets in Europe. A report from PA Consulting said Daimler faces a fine of over $1 billion if it doesn’t reach its goals. We have a related story coming up later in the show.
CANADA SLAPS VW WITH DIESEL FINE
Speaking of emissions, more automakers are facing punishment for cheating on diesel emissions. Yesterday, a judge in Canada approved a nearly $150 million fine for Volkswagen over its diesel cheating. While the fine is not that much for a major global automaker, it is the largest environmental penalty handed out in Canadian history. But it’s not getting off that lightly. The company also previously agreed to spend nearly $2 billion to buyback or fix affected models from Canadian customers.
JEEP & SUZUKI DIESELS EXCEED EU LIMITS
And regulators in Europe are threatening to ban sales of the Jeep Grand Cherokee and Suzuki Vitara. Authorities claim that the diesel versions of both models violate emission standards. Jeep has developed a fix and that was approved. Suzuki still needs to come up with a solution or it will be forced to stop selling the Vitara in Europe.
TESLA CYBERTRUCK’S PAPER INSTRUMENT PANEL
When Sandy Munro was on Autoline After Hours last week he talked about the Cybertruck using a paper screen on the instrument panel. His description left a lot of people thinking he got it all wrong so he sent us a clarification. He was talking about a technology called Paper Lion that was developed by a company in Michigan called Quantum Paper. The idea is to throw out all the plasma and LCD screens in a car and replace them with cardboard covered in a veneer of ultra-thin layers of electrically conductive ink. Not only does that slash weight, it reduces the amount of energy needed to power them by 50 to 80%. The picture you’re looking at here is the inventor Michael Feldman looking at a prototype paper TV that is taped to a wall.
DISENGAGEMENTS NOT A GOOD WAY TO MEASURE AVs
Earlier this week we reported on how Kyle Vogt, the CTO of Cruise, said that measuring disengagements of autonomous cars was not a good way to measure how good they are. Disengagements are when humans have to intervene and take control of an AV. Well, here’s why Vogt says that. Cruise found that drivers will disengage in an urgent situation just to be on the safe side. Cruise designed its system so drivers are aware of what an AV will do, but sometimes things happen too, so they disengage the system. And sometimes drivers just misjudge a situation and disengage. Cruise also believes in being polite to other drivers, so their drivers will disengage if another driver is aggressive or confused by the AV. OF course there are times when they disengage because the AV makes an error. Even more, Vogt says not all miles are equal. Disengagement data does not take into account driving complexity or weather. Besides, he says, sometimes passengers don’t even like how a real human is driving. We’ve all experienced backseat drivers telling the driver how and where to drive.
AIWAYS PUTS PRESSURE ON EUROPEAN AUTOMAKERS
AIWAYS is a Chinese automaker that will start selling its all-electric SUV in Europe this April. And this could pose a challenge for European automakers. Here’s our Autoline Insight. European automakers need EV credits to offset the CO2 emissions of their ICE cars. By the end of next year car makers must have their entire fleets average 95 grams of COs per kilometer or less, which works out to about 4.1 liters per 100 kilometers, or 57 miles per gallon. If they miss it, they’re fined 95 euros per gram per car. So the fines could be massive, and they need to sell more EVs to avoid them. But right now the number of consumers ready and willing to buy electrics is rather limited. And Chinese automakers exporting good looking EVs at lower prices could siphon off enough buyers to make it very difficult for European automakers to sell enough EVs to avoid fines. And so the race is on. European OEMs need to rush to the market with their EVs before the Chinese can gain a foothold.
Be sure to join us for Autoline After Hours this afternoon when our guest will be Jeff Shuster from LMC Automotive. We’ll be getting his insight on consumer demand for EVs, especially EVs that are not made by Tesla. And of course we’ll be getting into other topics, So join me, Gary Vasilash and Mike Austin from Hemmings for some great insights of what’s going on in the automotive industry.
CONSUMERS NOT WILLING TO PAY MUCH FOR TECHNOLOGY
Automakers and suppliers are pouring billions of dollars into developing new technology. But according to a new global survey from Deloitte, consumers aren’t willing to spend much for those new gadgets. It questioned more than 35,000 people in 20 countries. In the U.S., 60% of respondents said they were unwilling to spend more than $500 for advanced auto technology. And in Germany, a large majority of consumers said they wouldn’t pay more than 400 euros for advanced technology. Once these technologies become commonplace, consumer attitudes will probably change but these results have to be a little unnerving for the auto industry.
BRIDGESTONE’S AIRLESS TIRES FOR COMMERCIAL TRUCKS
Airless tires are a nifty idea, but we’ve always heard they would not be durable enough to withstand the weight for passenger cars. But now Bridgestone developed an airless tire that’s able to withstand up to 5,000 pounds and it will first offer them to commercial truck fleet operators. The center of the wheel is a thermoplastic web wrapped with a rubber tread wrapped around the outside. Bridgestone says that fleets encounter an air-related issue on their vehicles every 8,000 miles. Bridgestone is also going to provide a fleet of airless tire bicycles at the 2020 Summer Olympics in Tokyo.
GM IMPROVES TRAILER BRAKING
Anyone that’s had to tow a trailer knows it can be a harrowing experience, but GM is taking some of the worry out of trailering. It developed a new concept for trailer braking, called eBoost. The system uses upgraded brake rotors, calipers and tires and allows the truck to control trailer braking through the existing seven-pin trailer wire connector. GM claims a truck with the system can stop in the same distance that it does without a trailer. And it improves stopping distance by up to 20% or roughly 40 feet compared to a truck towing a trailer with traditional electric trailer brakes. eBoost also doesn’t need any extra connections and helps mitigate trailer sway by using stability control.
But that’s it for today, thanks for watching and please join us again tomorrow.
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Comments (32)
January 23rd, 2020 at 12:12 pm
“European OEMs need to rush to the market with their EVs before the Chinese can gain a foothold.”
Forget the Chinese. They need to rush before Almighty Tesla starts turning out another 500,000 a year from its planned and approved Berlin-Brandenburg plant in former East Germany.
January 23rd, 2020 at 12:17 pm
“Cruise also believes in being polite to other drivers, so their drivers will disengage if another driver is aggressive or confused by the AV”
I am not sure if this will make things better. We aready know that AVs can only work under IDEAL weather and traffic conditions.
What the Cruise type thinks is polite, an impatient Human driver behind the AV (which religiously obeys the speed limit, EVEN if it is stuck on the Left (ie PASSING, auto illiterates!) Lane, will soon show his road rage by tailgating the stupid AV and putting its impotent passengers in grave danger. What will the wise AV computer brain do in that all too frequent situation? No matter what, it is a recipe for DISASTER.
January 23rd, 2020 at 12:22 pm
Surge brakes with an electromechanical lockout for reversing is still the best trailer brake solution. Negative feedback at it’s finest.
January 23rd, 2020 at 12:22 pm
1 PS and while Brussels can deal with the Chinese the way it knows for decades now, by imposing more and higher tariffs on their imports under some lame excuse (European Tariffs and other protectionist measuresmake Trump’s real or threatened tariffs look like kindergarten stuff), Brussels will be 100% impotent to do so to any of the 500,000 Teslas that will roll annually from its Berlin plant. Unless of course we have a new Grexit, this time not of Greece but of GERMANY, from the EC, which will also mean the end of this most uncompetitive, protectionist racket, the EU.
January 23rd, 2020 at 12:43 pm
Paper instrument panel sounds great for the weight and cost advantage but what about durability?
Bridgestone airless tire sounds promising. I would imagine many people in the RV industry would like that too. Nothing can ruin a vacation than to be dealing with flat tires.
I wonder if they get flat spots when they sit for long periods.
January 23rd, 2020 at 1:25 pm
A little more on the E-boost braking system: in simpler form, it is like anti-lock braking for trailers and won’t come from GM but will come from the trailer manufacturers (GM is looking for partnerships/alliances to offer this braking). To maximize this type system grippier tires and a black box is required for the integration and maximization of performance. Cost was not announced (and may be a hindrance to acceptance) but if implemented could be a boon to towing those larger loads.
January 23rd, 2020 at 1:26 pm
China will dominate the electric car market because they control the electronic supply chain as well as 95% of the rare earth metals. They have planned for this and are now in the driver’s seat.
The special status they have given Tesla will allow them to obtain any advantages the company has and disseminate them throughout their industry and solidly beat all competitors at their own game. Exactly how they have being doing it to their chosen targeted industries by their state owned enterprises as well as their native companies.
January 23rd, 2020 at 1:51 pm
It sounds like LG Chem (a Korean Company) is feeling pressure from China and starving MB out of meeting it’s EV production goals to satisfy the EU Aristocrats in Brussels. The EU fines will further weaken MB, so that the Tycoons of Chinese Auto Companies can grab up more MB stock and take them over, IMHO. The Chinese master plan is “If you can not beat them buy them!”
Chinese R&D = Recycle the competitions ideas and Distribute to the world at a lower price.
January 23rd, 2020 at 2:09 pm
I would suggest that if the EU wants to give the UK a rough time over Brexist, when President Trump and the US Congress should offer to the UK to join USMCA Trade Agreement. This would strengthen bonds between all four nations, and tell the Aristocrats in Brussels to watch out for the Big Russian Bear who might eat their lunch.
January 23rd, 2020 at 2:15 pm
7 Well said Bob! Yet in an effort to grab a buck right here and now we continue to sell our souls with no regard for the long term affects. Its like watching a real live game of Monopoly play out. If you haven’t played, the person who buys all the property typically wins the game.
January 23rd, 2020 at 2:21 pm
7 No. Because in the case of Tesla, it is the ONLY foreign company that the Commies in Beijing did not require to form a 50-50 partnership with a Chinese outfit so they can steal their secrets. Maybe this is why they also made Musk an honorary Chinese Citizen, to circumvent their own laws on this. The 500,000 a year Shanghai Gigafactory will be 100% Tesla-owned.
January 23rd, 2020 at 2:25 pm
In light of the “After Hours” program today:
Given complaints about the high EV purchase price, favorable leasing options might be a break-through approach:
1) The car will be maintained to avoid turn-in penalties.
2) The ‘like new’, end-of-lease car will have affordable purchase price.
In effect, the first owner, leaser will have covered the initial depreciation. The second owner will get a great EV car at a great price. Perhaps add an extra year of warranty and everyone wins.
January 23rd, 2020 at 2:29 pm
9 The UK might be more likely to want to join TPP 2.0, which includes Commonwealth countries Australia, Canada, New Zealand, and Singapore.
https://en.wikipedia.org/wiki/Comprehensive_and_Progressive_Agreement_for_Trans-Pacific_Partnership
January 23rd, 2020 at 2:44 pm
airless bicycle tires made there debut about 25 years ago for road bikes. they were green and were made out of what appeared to be some sort of high density foam,and fit a regular bike rim. they had a fairly high rolling resistance so never caught on.
January 23rd, 2020 at 2:49 pm
12 The real problem of much higher than their ICE peers BEV prices existed ONLY until the arrival of the base Model 3. The Model 3 is actually CHEAPER than ICE cars of the same performance and size, ie the 3 Series and its many rivals.
This is why the Model 3 sells 10 times what even other successful Tesla models sell, like the S and the X, and also 10 times what the various loser BEVs from ‘established’ makers cost, compliance vehicles made at a loss for the most part, and still twice as expensive as their ICE twins.
January 23rd, 2020 at 2:52 pm
13 the 4 economies you mention are all tiny, even Canada, in comparison to the UK, much less to the US or China.
The UK has its Commonwealth and also very strong ties with the US, as proven in WW II, where we literally saved their butts.
IF the UK could convince INDIA, which has practically the same population as CHina (in a few years it will surpass China’s population, if they don’t get serious) to become another China, they can tell the EU and even everybody else to go to hell. But this is not likely.
So the UK’s best bet is the USA.
January 23rd, 2020 at 2:58 pm
Looking forward to today’s AAH. The best AAHs are when there are no guests except the knowledgeable panel members and no peddlers of the latest Kia or Lincoln Breadvan or something.
January 23rd, 2020 at 3:05 pm
16 Japan is also part of the TPP agreement. Additionally, the UK has expressed actual interest in joining TPP, but not NAFTA, from what I’ve read, but as this article says, “it’s complicated.”
https://thediplomat.com/2019/11/britain-in-the-trans-pacific-partnership-after-brexit/
January 23rd, 2020 at 3:47 pm
I think it best for the EU and U.K. to put a hold one CO2 standards until they resolve the problem. The Europeans could never sell enough EVs to make a difference, so the China threats are a moot point. They don’t have ample charging stations and, more importantly, not one battery manufacturer in Europe.
CO 2 emissions have been on the increase because people are buying more gas vehicles than diesels, which produce less CO2. Maybe keeping diesels more available for now isn’t such a bad idea.
January 23rd, 2020 at 4:08 pm
19 Europe can’t sell enough EVs to help CO2 emissions much, but they might sell enough to clean up the air in the big cities, especially if the EVs replace dirty diesels.
Europeans need to buy more hybrids, but they never really caught on there. Maybe it’s because the local companies don’t make them, or at least don’t make the better ones.
January 23rd, 2020 at 4:14 pm
“Daimler faces a fine of over $1 billion if it doesn’t reach its goals”. So does anyone think Daimler will just absorb such fines? Of course not it gets passed onto the consumer. So while people keep complaining about the rising cost of cars remember when you force the manufacturers to produce cars that no one wants they have to prepare to pay fines in order to sell something.
If they want to curb peoples appetite for the large trucks and SUVs make registration based on emissions. Stop forcing the manufacturers into a corner where the vehicles that sell don’t help them achieve regulatory goals. It basically costs us all as these fines are passed on to the consumer.
January 23rd, 2020 at 4:24 pm
20). But my point is the Europeans may be putting the cart before the horse. They need to strengthen their economy and come up with a plan so their auto industry doesn’t collapse before they tighten emissions. They need to join the TPP or another to offset Trumps foolish tariffs threats.
They have many plants in the US, employing hundreds of thousands of US workers. Wonder how they might use this to their advantage. Could they threaten Trump, in the election year, to possibly begin to close US plants and join other makers in other countries such as Canada and Mexico? Then they could rebrand and import others EVs to offset the China and Tesla problem.
January 23rd, 2020 at 4:45 pm
22 I suspect the transplant plants that export, like BMW and M-B, with their US plants being the only source for some of their SUVs are kind of waiting things out, and might move production south or north in the future, depending on things.
The “mainstream” European companies, except maybe VW, don’t seem to be in a very strong position for the future.
January 23rd, 2020 at 7:22 pm
The revised set is much better. Background is still a touch busy but in all, more professional, crisper and more colorful.
January 24th, 2020 at 8:38 am
What’s funny in this picture? Today the CEO of VW brags that he will sell more BEVs than Tesla.
It’s like the 12,000 elephant challenging the half-pound mouse.
How the tables have turned in 5 short years.
January 24th, 2020 at 8:38 am
25 correction 12,000 lbs.
January 24th, 2020 at 9:57 am
25 Did the VW guy say when? VW probably will sell more within 4-5 years.
January 24th, 2020 at 10:26 am
Was that a mouse in the yellow bushes?
January 24th, 2020 at 10:56 am
27 Did not read the article, just the title, but you probably got it since it is in today’s AN or ANE.
In 4-5 years the Berlin Tesla factory should be at full 500k/year production.
If VW’s subcompact BEV is much cheaper than the Model 3, maybe.
January 24th, 2020 at 11:13 am
Considering VW much larger sales volume they might have a chance if…..
January 24th, 2020 at 11:16 am
It looks like VW should about tie Tesla in EV in 2025, if both remain “on schedule.”
https://electrek.co/2019/12/27/volkswagen-accelerates-electric-car-plans/
January 24th, 2020 at 11:18 am
VW-owned Spanish SEAT had a BEV based on the sub-subcompact VW “UP!” car which is very practical and very cheap as an ICE and has clones in Skoda, SEAT etc. If I remember well, the price was in the 20s. (the ICE sold for $10k euros at first, a close friend bought and ICE one as a second car to their 2008 Golf). The “UP!” looks quite good and not cheap, is very tall-boxy so it can carry the max cargo and people for its tiny dimensions.