AD #2998 – Cruise Sending AVs to Japan for Honda; New RWD Taycan Much Cheaper; Mercedes Reveals New EQA EV
January 20th, 2021 at 11:48am
Listen to “AD #2998 – Cruise Sending AVs to Japan for Honda; New RWD Taycan Much Cheaper; Mercedes Reveals New EQA EV” on Spreaker.
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Runtime: 10:13
0:07 Chip Shortage Could Last Until End of Q1
0:39 Mexico Wants Ford to Relocate Brazil Production
1:10 Trump Pardons Anthony Levandowski
2:55 Audi Develops 3D Virtual World for Employees
3:35 Rivian Raises Billions More in Investments
4:10 GM & Cruise Teaming with Microsoft
4:26 Hottest Automotive Stocks
4:51 Cruise Sending AVs to Japan for Honda
5:15 New Bolt EV & EUV Debuting on Valentine’s Day
5:47 New RWD Taycan Much Cheaper
7:21 Mercedes Reveals New EQA EV
8:26 New Defender Hitting in the Nick of Time
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CHIP SHORTAGE MIGHT LAST UNTIL END OF Q1
That chip shortage may be more serious than we first thought. Bloomberg reports that Volkswagen lost 50,000 cars in production in China in December. And that’s before the shortage really got going. VW was affected by chips that go into its electronic stability control and anti-lock brakes. One of our sources in the supplier industry tells Autoline that General Motors is advising its suppliers the shortage will not be solved until the end of the first quarter at the earliest.
MEXICO WANTS FORD TO RELOCATE BRAZIL PRODUCTION
When Ford announced it will no longer build vehicles in Brazil, Mexico saw an opportunity. Reuters reports that the Mexican government wants Ford to relocate some of that production to Mexico. It’s said the Mexican government will offer Ford tax breaks and other incentives. Ford makes the Mustang Mach-E and Bronco Sport in Mexico and already plans to export them to Brazil. It will also make a small pickup truck, the Maverick, in Mexico and will probably export that to Brazil as well.
TRUMP PARDONS ANTHONY LEVANDOWSKI
President Trump issued more than 140 pardons and commutations in his last day in office. We were surprised to see that includes Anthony Levandowski, who was convicted of stealing intellectual property from Google about the it’s autonomous vehicles. He took that stolen material to Uber until Uber fired him. Levandowski was sentenced in August to 18 months in prison after pleading guilty in March. The White House says that Levandowski “paid a significant price for his actions and plans to devote his talents to advance the public good.”
AUDI DEVELOPS 3D VIRTUAL WORLD FOR EMPLOYEES
Audi developed a virtual 3D world for its employees in order to communicate during the pandemic. Called Audi Spaces, workers can participate in meetings or provide training in real-time, in virtual spaces via their own avatar. The avatars are able to make gestures, interact, and talk to one another. It’s available now to all of Audi’s employees worldwide and more than 4,000 have already used it and average about 200 meetings per month. Those who have participated say the virtual world is more relaxed and less tiring than using video conferences, like Zoom or Skype.
RIVIAN SECURES BILLIONS MORE IN INVESTMENTS
EV startup Rivian has a busy year scheduled. Not only is it launching its R1T and R1S, but also those delivery vans for Amazon. In order to stay focused on those launches while scaling up for the future Rivian just closed another investment round. It raised $2.65 billion, which was led by funds and accounts that are advised by T. Rowe Price. So far, Rivian’s been able to secure investments pretty easily. It’s raised $8 billion since the start of 2019.
GM & CRUISE TEAM UP WITH MICROSOFT
GM and its self-driving subsidiary Cruise are teaming up with Microsoft to use Azure, which is Microsoft’s cloud computing platform. GM and Microsoft are also collaborating on data storage, AI and machine learning.
HOTTEST AUTOMOTIVE STOCKS
Wall Street sure loved the news. GM stock jumped 9.7% yesterday. Carmax also had a good day. It was up 9.5%. Lazy Day, a retailer of RVs, was up 6%. And Americain Axle was up 4%. But the rest of the automotive sector had a lackluster performance. It was only up 0.3%.
| Automotive Stock Prices January 19, 2021 |
||
|---|---|---|
| General Motors | $54.84 | +9.7% |
| CarMax | $116.43 | +9.5% |
| Lazy Day | $18.68 | +6.0% |
| American Axle | $9.10 | +4.1% |
CRUISE SENDING AVs TO JAPAN FOR HONDA
Speaking of Cruise, it’s also sending self-driving cars to Japan that Honda will use for future mobility services. Somewhat interesting, the initial vehicles being sent this year are modified Chevy Bolts, which will help with testing and development. But when Honda launches its services, it will use Cruise’s purpose-built mobility vehicle, the Origin.
NEW BOLT EV & EUV UNVEILING ON VALENTINE’S DAY
This Valentine’s Day, February 14th, is going to be filled with more than just flowers and love notes. Chevrolet announced it’s going to unveil the Bolt EV and EUV with the help of Disney World. Both vehicles will be available this summer.
PORSCHE INTRODUCES RWD TAYCAN
Take away its front motor and the associated electronics and it’s amazing how much less a Porsche Taycan costs. The sports car maker is launching a new entry-level, rear-drive-only version of the EV, which will just be called Taycan, that has a starting price of $81,250 in the U.S., including destination charges, but before any federal tax rebates. For comparison, a Taycan 4S starts at $105,000. The rear motor is the same as in other models and so are the two battery sizes, 79.2 kWh and 93.4 kWh. But with less mass, 200 pounds to be exact, range is up. The WLTP test figures come in at 431 kilometers and 484 kilometers, which is 24 and 21 kilometers more than the dual motor setup. The EPA has not rated the new model yet, but we expect its 192 and 201 mile range to jump by about 15 miles. But with one less motor it’s obviously not as fast. It will do 0-60 in 5.1 seconds, down from 3.8 in the Taycan 4S. The only other thing that really sets the rear-drive Taycan apart is that the wheels, brake calipers, front apron, side skirts and rear diffuser are painted black. The new Taycan is on sale right now.
MERCEDES REVEALS NEW EQA EV
Speaking of new, entry-level EVs, Mercedes introduced the EQA. Based on the same platform and built in the same plant as the gas and diesel powered versions of the GLA, the EQA will first go on sale in Europe. In Germany prices start at a little over 47,500 or more than $57,500. The EV is equipped with a 140 kW electric motor that drives the front wheels and a 66.5 kWh battery, which is said to return 486 kilometers of range on the NEDC test. Mercedes is considering bringing the EQA to the U.S., we expect it will, to get more volume, and when it does, we expect the EPA range to be around 210 miles. Mercedes says it will launch other models with all-wheel drive with outputs of 200 kW or more and models that have more than 500 kilometers of WLTP range.
NEW DEFENDER HITTING IN THE NICK OF TIME
Looks like the new Land Rover Defender is hitting showrooms just in the nick of time. Last year, Land Rover’s sales were down 16% in the U.S. market due to the pandemic. Last month every single Land Rover model saw its sales plummet, except for the Defender, which is now the best selling model in the lineup. Part of the reason for that may be the price. The Defender starts at just over $47,000, but you can easily option it up with things like a snorkel tube, safari roof rack, and external gear carrier. Keep checking the boxes and you can push the price to $84,000. We recently had one in the Autoline Garage and were impressed how it blends pampering luxury with serious off road capabilities. But our colleagues at The Fast Lane Car ran into some serious quality problems with it. So if the Defender is on your shopping list you may want to wait until Land Rover gets these issues resolved.
Gentex is an interesting supplier company. First it cornered the market on rearview mirrors, and today it’s turning into a tech company that is getting into a lot of different areas. And on Autoline After Hours tomorrow we’re going to have Neil Boehm, the chief technology officer of Gentex, as our guest. So join John and Gary as they peel back the layers of how this industry works.
But that’s a wrap for today. Thanks for watching.
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Comments (20)
January 20th, 2021 at 12:39 pm
I find the exterior styling of that EQA quite underwhelming.
January 20th, 2021 at 12:51 pm
Sounds like Rivian is on the right track. Is Ford still a partner? I remember them investing like 500 Million in Rivian back in like spring of 2019.
I know companies that go under or just fade off into the abyss don’t typically make the news but it would be interesting to hear how many of these EV start ups are going belly up. Seems there were bunches of start-ups popping up daily and we all knew only a few would survive. There has been a few we haven’t heard from in a while.
January 20th, 2021 at 12:56 pm
Funny they would show Audi virtual 3D world in a group like setting surrounding a crankshaft and pistons, when everyone keeps saying they have no new engines in development. Maybe used for that very reason as not to expose anything proprietary or maybe still developing ICE’s.
January 20th, 2021 at 1:32 pm
The RWD Taycan is almost competitively priced, but if like most Porsches, many things will be options that are standard on other cars.
January 20th, 2021 at 1:39 pm
2) Ford is invested in Rivian; I heard Ford may have purchased more over time, but to what % is unknown. And since they will be assembling the Rivian trucks it will be another reason Ford stock will continue to increase. It is lower than GM stock, but who knows how far it will go.
January 20th, 2021 at 2:10 pm
Also contributing to the microchip shortage is the huge increase in demand for laptops as a result of remote learning during the pandemic. Some schools are giving every student a Chromebook. I was looking at a new laptop for myself and just to get the equivalent of what I have now will cost at least $100-150 more than I paid previously.
January 20th, 2021 at 2:49 pm
6 I, too have heard about the huge uptick in Chromebook sales for schools, and also, increased sales in various electronic toys, like game consoles. I bought a new laptop before the chip shortage began, so maybe I saved a little money over buying it now.
January 20th, 2021 at 3:59 pm
1) They certainly are not moving the needle.
I guess the OEMs all think we are suddenly able to afford $50k compact SUVs. For reference, the current compact SUV from Mercedes starts at $38k. With an estimated starting price of the EQA at $58k, that is a huge premium to pay just to be electric. Did everyone suddenly get a huge pay raise in 2021 to where they can now afford $50k compact SUVs?
January 20th, 2021 at 4:32 pm
8. All true, and $38K is a big premium to pay for a three pointed star, over a Honda or Toyota that is better in most ways. Even without the price premium, EVs won’t work for a lot of people, because there’s no place to charge them.
January 20th, 2021 at 5:43 pm
I really like how a vehicle’s price can be doubled quite easily,with options. The base price units never seem to be available.
January 20th, 2021 at 6:04 pm
10 You need to order them to get base cars. You can still do that with “detroit three” products, and even Porsches.
January 20th, 2021 at 6:27 pm
The outrageous price of EV’s along with the price of pick-ups and many normal SUV’s seems to puzzle us all and are curious of how the average buyer can afford them. I then wonder just how many of these purchases are either leased or bought on a loan beyond what was the normal 3-5 years. It appears these alternatives has done little to direct buyers towards EV’s. There are a couple of us on this forum who are thrilled with their EV’s and this is great. The first hand experience that they share allows us to maintain an open mind, yet they are only one of the 2%ers.
I think this group is pretty level headed and each one of us has something to offer where others are lacking. But this makes me wonder of we are representative of the average population. For whatever reason we find, we too, can’t afford todays offerings or perhaps are reluctant or just don’t want what is available today with the over-load of unproven technology. So, if the manufactures are attentive to buid vehicles for people like us, the average “Joe, why aren’t they listening?
January 20th, 2021 at 6:31 pm
By the way; Haven’t we had a lot more fun comments since Larry has been gone? Hallelujah!!!
January 20th, 2021 at 8:43 pm
13 Much more civility.
January 20th, 2021 at 11:48 pm
12 For years, I’ve heard that a majority of “premium/luxury” brand vehicles like M-B, BMW, and Lexus are leased. I suspect a lot of the $60K pickup trucks are also leased. The lessees of pickup trucks who actually use them as trucks, and have paint scratches in the bed, etc., may be shocked with the few thousand dollar repair bills when they turn them in.
January 21st, 2021 at 1:17 am
My fondest hope is the “trade war” will come to and end with sensible tariff policies. It will have to be negotiated and coordinated with the other nations but at last, the tariff, a type of Federal sales tax, will shrink.
January 21st, 2021 at 8:31 am
12, I couldn’t agree with you more and I really think that EV manufacturers are in for a rude awakening. When EVs first started they all built these tiny commuters with huge price tags and realized no one was going to pay twice as much for an econobox that was less convenient. So Tesla launches a luxury EV with the features people expect when spending 80K. So now all the EV manufacturers are scrambling to launch an EV that can support a 50-80k price tag and what on the current market was pulling in that kinda cash? Luxury cars, trucks and SUVs. So now everyone is in the EV luxury car or EV truck business without considering market demand. If there was demand they wouldn’t need incentives or tax breaks. So very soon all these EVs will hit the showrooms and when no one buys them or very few buy them they will get discounted until they are giving them away. Manufacturers are going to be at a loss after neglecting all there ICE vehicles and scrambling to develop an vehicle people want. I honestly think you’ll see a resurgence of hybrids probably PHEVs. Something that can run in EV mode within a city but still have 500 mike range. Also get the prices back into the 30s. Anyway that’s my thoughts but I agree the market is going to be flooded with lots of 50K+ EVs and that has a limited amount of buyers. After that we will probably see a few more EV start ups go belly up.
13-14 Amen! and I wont say the other. lol.
15 When I turned in my leased truck I was told the scratches in the bed didn’t matter. I’m sure that could be different depending on the brand and lease company.
January 21st, 2021 at 8:54 am
As prices come down and charging infrastructure improves, interest in EVs will increase. Still, though, EVs are not even close to gas vehicles for long highway trips, and probably 20-30% of Americans have no place to charge them at home.
The bottom line is that, for now, people buy EVs because they “like” them, for the instant acceleration, lack of powertrain noise, low routine maintenance, and environmental friendliness, real or perceived, depending on where your electricity comes from.
15 Interesting. It sounds like they are less picky with trucks, at least in your case, than they were with a Grand Cherokee my sister leased a few years ago. They wanted it to be “like new” at the end of the lease.
January 21st, 2021 at 9:12 am
18 Oh they are still picky about the rest of the truck. The lease company even sends out a guide a couple months before the end of the lease. The guide provides the maximum allowable size of a dent or scratch tear in fabric. Specified the amount of tread on the tires and that they all need to match and so on.. Of course I had scratched up the inside of the bed because I do use my truck to haul things. They said the scratch requirements don’t apply to the inside of the bed.
January 21st, 2021 at 9:30 am
19 I had leased a truck back in the 80′s and they were going to charge me $200 for the stone chips in the painted front bumper. A rattle can fixed that.