AD #3023 – Kia Reveals New Carnival Details; Oshkosh Wins USPS Truck Contract; Daimler Partners with Cummins
February 24th, 2021 at 11:57am
Listen to “AD #3023 – Kia Reveals New Carnival Details; Oshkosh Wins USPS Truck Contract; Daimler Partners with Cummins” on Spreaker.
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Runtime: 10:16
0:08 Taiwan Drought Could Disrupt Chip Production
0:51 Oshkosh Defense Wins USPS Truck Contract
2:06 Fisker Signs Manufacturing Deal with Foxconn
4:32 Porsche Testing Taycan Cross Turismo
5:16 Kia Reveals New Carnival Details
5:53 Mitsubishi Updates Outlander Plug-In
7:12 Nikola Shares New Truck Details
8:01 Suzuki’s 91-Year Old Chairman Retires
8:37 Daimler Trucks Partners with Cummins To Build Engines
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TAIWAN DROUGHT COULD DISRUPT CHIP PRODUCTION
The global chip shortage that’s crippling car production is going from bad to worse. Most of those chips are made in Taiwan. And now it’s suffering through a severe drought. Chip production is really water intensive, so the Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker, is ordering water by the truckload to keep its plants running. TSMC says production hasn’t been impacted yet, but some automakers have had to cut production. And the problem isn’t going away soon. That drought will last for several more months, so Taiwan is preparing for the worst.
OSHKOSH DEFENSE WINS USPS TRUCK CONTRACT
The U.S. Postal Service finally announced who won the contract for its next-gen mail trucks. Oshkosh Defense won the 10-year contract, which could be worth more than $6 billion, as it builds somewhere between 50,000 and 165,000 trucks. The right-hand-steer vehicles will have either ICE or BEV powertrains, more cargo space, as well as new safety and convenience features. Mail carriers will be thrilled to learn it has air conditioning. You may remember that Oshkosh teamed up with Ford for its initial proposal to the USPS, using a prototype based on the Transit van. Ford declined to comment about the deal and Oshkosh declined to say if Ford has any role in the contract. If Ford was involved, it would probably be bragging about it. Oshkosh Defense’s President told Reuters, the new mail truck “is not a Ford Transit … but is a purpose-built vehicle.” While this is great news for Oshkosh, Workhorse, one of the other finalists that competed against Oshkosh for the contract, saw its shares drop as much as 50% yesterday.
FISKER SIGNS MANUFACTURING DEAL WITH FOXCONN
When Henrik Fisker was on Autoline After Hours he told us he was very interested in making electric cars in China. And now he’s going to do it. Yesterday he signed up with Foxconn, the world’s largest contract manufacturer, which makes most of Apple’s products. Foxconn will build 250,000 EVs a year Fisker will export around the world. Though they didn’t say the cars would be made in China, we predict that’s exactly where they will be made. Foxconn says it will leverage its supply chain to develop the motor, inverter and battery. Production is expected to start at the end of 2023. Foxconn is also going to lend its expertise for information and communications technology, and no doubt it learned a thing or two about this by making iPhones for Apple. Fisker is following a strategy that analysts call “asset light.” Instead of building its own manufacturing facilities, it’s contracting Foxconn and Magna to assemble its vehicles. It’s a clever strategy and no one else is doing it.
PORSCHE TESTING TAYCAN CROSS TURISMO
Guess what? We’re still speaking about new electric vehicles. Porsche is now testing the Cross Turismo version of the Taycan, which is launching in Europe this summer. There’s not a whole lot of details to go on, but the car features a completely new roofline, which has been raised, added more space in the second row and gave it a bigger trunk. Kinda looks like a Panamera version of the Taycan to us. Porsche engineers also raised the ride height and optimized the suspension setup so the vehicle can handle light off-roading on gravel roads. By spinning off more models on the same platform, Porsche will be able to save a ton of money and boost profit margins, so it wouldn’t shock us to see a coupe and cabriolet as well.
KIA REVEALS NEW CARNIVAL DETAILS
We’ve got specs for the North American version of the Kia Carnival, which replaces the Sedona. All models come with a 290 horsepower, 3.5L V6 mated to an 8-speed automatic that drives the front wheels. The setup returns a towing capacity of 3,500 pounds. You know we live in a glorious age when minivans come with almost 300 horsepower. The interior features digital display screens and the option for flexible seating for 7- or 8-passengers. The Carnival goes on sale in the second quarter of this year.
MITSUBISHI UPDATES OUTLANDER PLUG-IN
Mitsubishi improved the plug-in hybrid version of the Outlander for 2021. Combined system power is up 31 horsepower to 221, thanks to a new, more efficient 2.4L 4-cylinder engine that makes 126 horsepower and a 70-kW rear motor, which replaces a 60-kW unit. The battery pack also grows from 12-kWh to 13.8-kWh and that bumps range up by two miles to a total of 24. Finally, a software improvement better syncs up the battery and engine and Mitsubishi added Sport and Snow drive modes. Despite all the new content, the starting price remains the same at $37,490, including destination charges. It also qualifies for a slightly larger federal tax credit thanks to that slightly larger battery pack.
NIKOLA SHARES NEW TRUCK DETAILS
Without Trevor Milton at the helm spewing out bold and sometimes misleading claims, Nikola seems to be getting back to reality. It says the first fuel cell version of its big trucks, which uses GM technology, will start being produced in the second half of 2023. Called the Tre FCEV Cabover, it uses the platform from the battery electric version of the Tre, but is estimated to have a range of 500 miles. In late 2024, Nikola plans to start producing the Two FCEV Sleeper, a long-haul truck with up to 900 miles of range, which is based on a new chassis developed with North America in mind. It hopes to start on-road prototype trials of the fuel cell Tre early next year.
SUZUKI’S 91-YEAR OLD CHAIRMAN RETIRES
How do you manage to stay on as the chairman of a car company when you’re 91 years old? Well it sure helps if the company name is your family name. Suzuki’s 91-year old chairman, Osamu Suzuki, will retire in June and hand over the reins to his son, Toshihiro Suzuki, who is already president and CEO. Old man Suzuki joined the company in 1958, became president in 1978 and was named chairman in 2000. However, he’s not going away completely. He’s still going to be a senior advisor.
DAIMLER TRUCKS PARTNERS WITH CUMMINS TO BUILD ENGINES
Here’s another collaboration between two companies that are doing it to free up more cash to pay for future tech. Daimler Truck is forming a partnership with Cummins to make engines for medium-duty applications. Cummins will build an engine plant at an existing Mercedes-Benz facility in Germany where it will make engines that comply with upcoming Euro 7 standards, which would have otherwise required considerable investment from Daimler. The two companies are also looking at other areas to collaborate. But it’s a little surprising to see Daimler go with Cummins, since it already owns Detroit, formerly Detroit Diesel, which makes engines for its heavy-duty trucks.
Every auto show in the world was disrupted by the pandemic. And no one is certain if they’ll ever go back to being what they were. We’ll get into that tomorrow on Autoline After Hours when our guest will be Doug North, the 2021 chairman of the Detroit Auto Dealers Association. They’re not doing the Detroit Auto Show this year. Instead, they’re doing an outdoors event called Motor Bella at the M1 Concourse, a private motor club north of Detroit with its own race track. So join John and Gary to learn more about the future of auto shows.
And that wraps it up for today. Thanks for watching.
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Comments (23)
February 24th, 2021 at 12:29 pm
So wait…my head is spinning…, is Foxconn or Magna building Fisker’s Ocean BEV, or both? Is Magna building the Ocean and Foxconn building a different vehicle for Fisker? Whatever happened to Fisker’s revolutionary new battery tech, with it having 400+ miles of range and recharging in only a few minutes, that he was bragging about not long ago? Fisker fool me once, shame on you. Fool me twice….!
So with the Taycan getting a wagon, goes that mean that the e-tron GT gets one too?
February 24th, 2021 at 12:37 pm
Yep Ford shut down the Edge and MKX production for this and next week due to the chip shortage. All resources are being diverted to keep the F-150 running and same for GM to keep the Silverado, Tahoe’s and Corvette’s running down the line.
Ford would probably want to brag about their involvement with Oshkosh unless they signed a confidentiality agreement. That could easily be a transit under carriage with an Oshkosh body. Or maybe just a Ford powertrain.
Maybe Suzuki could use some fresh blood at the helm but his son is like 61 so still handing it to someone that’s close to retirement age. I read that Osamu wanted to let someone else make the transition to EVs and fend off newcomers like Tesla and Apple.
February 24th, 2021 at 12:40 pm
With world racing getting ready to start here is a good article about how Brexit affects that. Not much good news for teams.
https://www.motorsportmagazine.com/articles/motorcycles/what-does-brexit-mean-for-british-teams-and-riders
February 24th, 2021 at 12:44 pm
@2 I would agree Suzuki could probably use a new or younger outlook, their bikes and cars haven’t exactly been setting the world on fire.
February 24th, 2021 at 12:45 pm
@wmb – That’s a great question we don’t have a definitive answer to. We would guess it’s a new vehicle that Foxconn will make for Fisker. The Ocean was slated to start production next year on Magna’s BEV architecture. This new story says the vehicle will be made on Foxconn’s EV platform and will go into production at the end of 2023.
February 24th, 2021 at 12:54 pm
If Foxconn is a reasonable company to make cars, why wouldn’t Apple use them to make their iCar, or whatever they would call it?
February 24th, 2021 at 12:58 pm
1 Audi already has a lifted wagon version of E-tron GT. It’s called e-tron, without the GT.
February 24th, 2021 at 1:01 pm
I like the Carnival name, but wished they offered AWD. Did I hear correctly that the US version of the Kia Carnival has a 3.5L V6, not the 3.8L V6?
February 24th, 2021 at 1:05 pm
I thought Magna’s decision to make cars for Fisker was a bit out there. They have a history of doing many things well but taking a flyer on getting paid for unsold speculative EVs is not one of them. Assembly is only a small part of Magna and they may be waking up to the risks. From where I sit there isn’t much if any buzz about the Ocean.
February 24th, 2021 at 1:13 pm
Kia ‘Carnival’. Does it launch during Mardi Gras and come equipped with a clown that makes balloon animals?
February 24th, 2021 at 1:17 pm
So Oshkosh Defense will build somewhere between 50,000 and 165,000 trucks over a ten year period. That’s just 5,000 -16,500 vehicles a year. Far to few to replace the ancient postal fleet in a reasonable time period.
February 24th, 2021 at 2:04 pm
Being from Wisconsin I wouldn’t trust any deal with Foxconn, that is a dirty little word in this state.
February 24th, 2021 at 2:05 pm
@8: they should consider launching a performance version, the Carnival Barker
February 24th, 2021 at 2:06 pm
@Lex – Yes, the U.S. Carnival only comes with a 3.5L V6.
February 24th, 2021 at 2:09 pm
@9: I may not be getting what is going on, but it seems like many different brands and models of EVs for a small market. AS I said, I am probably missing the point.
February 24th, 2021 at 2:09 pm
@Carl – According to the USPS its fleet of vehicles is more than 230,000 in every vehicle class. It says there’s about 190,000 mail trucks.
February 24th, 2021 at 2:18 pm
I don’t think we are done with the Postal Vehicle award story yet. Oshkosh partnered with Ford and their proposal (and prototypes), used the powertrain and transmission from the Transit Connect and a body produced by Oshkosh (not sure about the frame). Workhorse has asked the Post Office for some clarification on the award, which is their right in the guidelines of the bid process.
My guess is that they are curious as to how the Post Office awarded a contract to Oskhosh that included a portion of the vehicle fleet to include EV powered vehicles when Workhorse was the only bidder that proposed that powertrain and the only bidder that provided prototypes for testing that used a pure EV powertrain. How would the Post Office have any idea if Oshkosh can build an EV that will be adequate and reliable?
They could have split the contract between two bidders, as many folks expected they would – but they did not. There is something fishy at the Post Office.
February 24th, 2021 at 2:35 pm
17 Could DeJoy be doing some, uh, suspect stuff before he gets booted out, as will probably happen in a few months?
February 24th, 2021 at 3:17 pm
Could be. I’m not sure how many people are involved in deciding on the contract award. Political influences are suspected. The undefined portion of the contract to be EV powered could be a last minute change to try to avoid issues with the Biden admin decree on electrifying the gov’t fleets.
February 24th, 2021 at 6:44 pm
@13 That would be the dog friendly version.
February 25th, 2021 at 3:22 am
Ford partnered with German onetime-startup StreetScooter to offer the country’s post office (who also own DHL) an electrified version of the ubiquitous Transit van. Serial production started at the end of 2018.
https://www.motor1.com/news/176987/ford-dhl-electric-delivery-van/
Links to DHL https://bit.ly/3dJLslz
It might have been smarter to procure separate vehicles for each mode of propulsion.
Oh, and SONY is predicting difficulties supplying enough Playstations for Christmas due to… guess what. It seems US sanctions on Chinese companies have had a thing to do with sharp shifts in chip production locales. I still find it interesting, as that Playstation silicon certainly commands a good price.
The news about Cummins and Daimler Trucks is noteworthy – European truck makers have been busily expanding across the globe until fairly recently. It goes hand in hand with Mercedes wanting to split and go it alone.
MERC EUR battery supply – I’ve heard vie manager magazin that they’re having serious problems with prototype cells supplied by Chinese company Farasis who were slated to build a factory in Europe.
Note: From memory, I didn’t cross-check.
February 25th, 2021 at 3:38 am
Ford had partnered with German onetime-startup StreetScooter to offer the country’s post office (who also own DHL) an electrified version of the ubiquitous Transit van. Serial production started at the end of 2018.
https://www.motor1.com/news/176987/ford-dhl-electric-delivery-van/
Links to DHL https://bit.ly/3dJLslz
It might have been smarter to procure separate vehicles for each mode of propulsion.
Oh, and SONY is predicting difficulties supplying enough Playstations for Christmas due to… guess what. It seems US sanctions on Chinese companies have had a thing to do with sharp shifts in chip production locales. I still find it interesting, as that Playstation silicon certainly commands a good price.
The news about Cummins and Daimler Trucks is noteworthy – European truck makers have been busily expanding across the globe until fairly recently. It goes hand in hand with Mercedes wanting to split and go it alone.
Mercedes EUR battery supply – I’ve heard via manager magazin that they’re having serious problems with prototype cells supplied by Chinese company Farasis who were slated to build a factory in Europe.
Note: From memory, I didn’t cross-check.
February 25th, 2021 at 8:40 am
To me, Carnival mostly means the cruise line. Maybe that’s because, until about a year ago, I would frequently see the word “Carnival” in 20 foot high letters on the ships three miles from my place. Since covid, the ships have all gone somewhere else, except for a brief appearance of one of the Disney ships.