AD #3103 – VW Drafting New U.S. EV Plan; Battery Costs Could Hurt EV Growth; Jeep Grand Cherokee L Review
June 17th, 2021 at 11:42am
Listen to “AD #3103 – VW Drafting New U.S. EV Plan; Battery Costs Could Hurt EV Growth; Jeep Grand Cherokee L Review” on Spreaker.
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Runtime: 9:43
0:07 VW Drafting New U.S. EV Strategy
0:48 European Car Sales Continue to Recover
1:16 Bridgestone Invests in AV Truck Company
3:01 Battery Costs Could Hurt EV Growth
3:59 Diesels Still Popular with Some Europeans
4:30 Lincoln’s EV Strategy is Obvious
5:59 Honda Dropping the Clarity
6:42 Jeep Grand Cherokee L Impressions
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VW TO ANNOUNCE NEW U.S. EV STRATEGY
With President Biden pushing a $174 billion plan to boost electric vehicle sales, Volkswagen says it’s drafting a new EV strategy for the American market. It will reveal the new plan later this year and while we don’t have any details, it will likely include building and selling more EVs. The ID.4 is its only EV available in the U.S. right now, which is manufactured at the automaker’s plant in Chattanooga, Tennessee. By next year, VW will build EVs at eight of its global factories, mostly in Europe and China. And by the end of the decade, VW plans to introduce 70 BEV models.
EUROPEAN CAR SALES CONTINUE TO IMPROVE
Car sales in Europe are improving but they’re still way below pre-pandemic levels. According to the European Automobile Manufacturers Association, sales were up 74% in May compared to a year ago when countries were in COVID lockdowns. It’s the third month in a row automakers posted an increase. However, compared to May of 2019, sales were down 25%, partly due to the semiconductor shortage.
BRIDGESTONE TEAMS WITH AV TRUCK COMPANY
Autonomous vehicles offer a number of safety benefits but when you think about trucking or package delivery when there’s no need for a human to be on board, how does an owner know when there’s a problem? Bridgestone announced it’s making a minority investment in Kodiak Robotics, a U.S.-based self-driving trucking company. Kodiak will leverage Bridgestone’s cloud-based technologies to help predict when there might be an issue with the tires. Kodiak currently operates Level 4 long-haul trucks with a safety driver on board to move freight in Texas. It hopes to launch trucks with no safety driver in the next few years.
Alfa Romeo was supposed to make a roaring comeback over the last decade. But it hasn’t happened. Sales of the Giulia and Stelvio came in far below expectations. So what’s next for Alfa Romeo? That’s what we’ll be talking about on Autoline After Hours this afternoon. We’ve got Larry Dominique, the head of Alfa Romeo North America coming on the show. So join Gary and John at 3PM eastern time later today.
ALIX PARTNERS SAYS OEMs TOO BULLISH ON EVs
Alix Partners, the consulting company, says electric cars still cost $8,000 to $11,000 more to make than cars with piston engines. It’s all about the cost of the batteries. And while battery prices are coming down, it says batteries will still cost $90 per kilowatt hour in 2030 on average. Even more, it says that even by 2028 EVs will not have the scale per platform of the average piston powered car. That is going to place an enormous cost burden on automakers. Interestingly, if you add up all the electric vehicles that global automakers say they’re going to come out with, it only reaches 35% of the market by 2030. But Alix Partners thinks automakers are too bullish. It forecasts that BEV sales will only hit 24% global market share by then.
DIESEL SALES CONTINUE TO FALL IN EUROPE
Diesels used to account for over 50% of all passenger vehicle sales in Europe but not anymore. LMC Automotive reports that diesel market share is now below 25%-half of what it used to be. But it varies by region and by segment. Diesel sales are actually going up in Italy. And they’re still going strong in the luxury segment. Over 40% of the passenger vehicles that Mercedes-Benz sells are diesels, and it’s over 30% at BMW.
LINCOLN’S EV STRATEGY IS OBVIOUS
Lincoln has 4 vehicles in its lineup in the U.S. market: the Navigator, Nautilus, Aviator and Corsair. And Lincoln says it’s going to come out with 4 BEVs. So it’s obvious where they’re going with this. Lincoln will come out with 4 electric SUVs to replace their piston-powered counterparts. But there’s going to be an overlap when both versions will be in the market. What we’d like to know is if Lincoln will keep the model names it has so carefully nurtured, or will it come up with new names for the electrics? One thing we do know is that the electrics will be built off dedicated platforms, and the first of them comes out in 2022. Here’s some of our own wild speculation. Maybe the first electric Lincoln will be the Navigator, and maybe Ford can use the chassis from the F-150 Lightning to make it happen.
HONDA KILLS THE CLARITY
More than a year ago, Honda dropped the electric version of the Clarity from its lineup. So it’s not surprising to learn that the automaker will end production of the plug-in hybrid and fuel cell versions of the Clarity in August. Honda sold less than 2,000 Clarity’s in the U.S. this year. While it did not break down sales, the majority of those were likely plug-ins, since the fuel cell is only available for lease in California. The Japanese factory that builds the Clarity is being shutdown next year. It also makes the Odyssey and Legend, which was the Acura RLX in the U.S. but it was axed from the lineup last year. Honda will continue to build the Odyssey at its plant in Alabama.
JEEP GRAND CHEROKEE L IMPRESSIONS
Jeep is hoping to attract more customers to its best-selling model, the Grand Cherokee. That’s because, for the first time, it’s going to come with a third row. Jeep calls this the Grand Cherokee L, which features a nice, little “L” badge on the driver’s side of the tailgate, just in case you’re not sure. It will also offer a standard wheelbase 2-row and 4xe plug-in hybrid versions of the all-new Grand Cherokee, but those aren’t scheduled to go into production until the end of the year. These are very easy to recognize compared to the outgoing model, just by looking at the lighting. A thin LED lighting signature is picked up on both the front and back, rather than the blockly look of before. You may also notice a little resemblance to the bigger, more expensive Wagoneer. This may be best highlighted by the rearward sloping grille. We like that Jeep designers lowered the belt-line as well. Not only does it help kick off some of the styling cues, but you feel like less of a child if you like to rest your arm on the door panel when the window is down. And it’s hard not to see that Jeep wants to push the Grand Cherokee into a more premium category. The interior is full of real leather, wood and metal accents, including an optional double-diamond stitch pattern, a little similar to what you might find in a Bentley. Under the hood there are two engine options as of now; a 3.6L V6 that makes 293 horsepower and a 357 horsepower 5.7L V8. A little more engine noise comes into the cabin than I would like, but both provide smooth power delivery and decent acceleration. When paired with the air suspension system, the all-new Grand Cherokee L has a nice ride and doesn’t feel like a huge SUV. And with three available 4X4 systems, there’s no need to worry about off-road capability. In fact, its ride height is up and it’s able to go up to 2-feet in water, which is 4 inches more than before. Overall, this is a very nice vehicle and it’s hard not to think it’s going to bring in and/or retain more customers with the new 3-row version. The Grand Cherokee L will start hitting dealer lots in the second quarter. Starting price ranges from about $38,700 to $63,700, including destination charges.
But that wraps up today’s show, thanks for watching.
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Comments (21)
June 17th, 2021 at 12:15 pm
If Biden keeps handing out money when inflation kicks in to high gear nobody will be able to afford a new electric car even with the other hand outs for buying one the tax payers already shouldn’t be but even won’t help
June 17th, 2021 at 12:22 pm
Another successful SpaceX launch and booster landing just happened. Payload is a GPS satellite.
June 17th, 2021 at 12:33 pm
Using the Lightning hardware for a Navigator BEV makes since and I think it was Autoline that said that Lincoln will have an EV the size of the Aviator (maybe that one will/could use the platform of the Rivian R1S?). While it’s pretty clear that an EV the size of the Nautilus could easily use the bones from the Mach-E, the question becomes, where will the four BEV come from? Lincoln/Ford doesn’t have a small EV to cover the space of the Corsair, so that makes me wonder if their fourth model may occupy a different, larger space in their portfolio. They will build a small EV CUV from the VW Groups MEB, but that for Europe and China. Will Ford build a new small BEV platform to cover that end of the market, even for Lincoln? I highly doubt it! Even the most inexpensive EV’s right now start in the mid $30K, which is where the Corsair price point begins, from a platform that began as $25K Escape. I do see how Lincoln/Ford can do that with the tech and batteries being so expensive right now.
The new Grand Cherokee L, looks great and I’m sure they sell everyone they make! Hose luxury touches will certainly add to the appeal of this premium vehicle. I still do not think that buyers of luxury vehicles of Land Rovers,
June 17th, 2021 at 12:37 pm
….of luxury EV’s like Land Rover, the German Three and the like will cross shop the Grand Cherokee L with those vehicles. It looks like it will be there lose if they do not, For the Jeep line up has certainly added another winner to their hand!
June 17th, 2021 at 1:22 pm
I hope we see a review of this: “Automakers’ lawsuit to overturn Massachusetts vehicle data access law goes to trial … The trial has begun in federal court to hear the challenge brought by the vehicle manufacturers against the voters of Massachusetts on the data access law.” For example, John Deere all but forbids self-maintenance and repair by farmers who bought $100,000 equipment that broke down in harvest or planting season.
I’ve always preferred to repair and maintain my own cars but even Toyota made Prius repairs more and more difficult over time. I don’t mind paying a reasonable cost for diagnostic equipment and a hardcopy/electronic maintenance manual. But don’t bleed me.
June 17th, 2021 at 1:36 pm
3,4 Even the outgoing Grand Cherokee is a worthy competitor to X3 and GLE in most ways, for a lot less money, but it probably isn’t often cross shopped much with those German, expensive brands.
June 17th, 2021 at 2:03 pm
When is the current 2021 Jeep Grand Cherokee model scheduled to end production? I would hope not before the end of the calendar year since between the COVID-19 and the Chip Shortage they have lost many unit.
June 17th, 2021 at 2:05 pm
Will the Honda Breeze (in Asia) be replacing the current CR-V in North America?
June 17th, 2021 at 2:12 pm
I too think that the Grand Cherokee L will be a hit for JEEP. It finally solves the one thing GC buyers have been asking for which is the all important 3rd row. Before now they had to step up to something far more expensive to get a 3rd row. This should help them keep if not conquest buyers to JEEP.
June 17th, 2021 at 2:15 pm
I would like to suggest to KIA that they reduce the number of trims currently offered on the Telluride from 4 (LX, S, EX & SX) to 3 (LX, EX and SX) this would increase and streamline production.
KIA should add Fog Lights to both EX and SX trims, while allowing Dealers to add them on other (LX) trims. LED headlights should be standard on all trims.
I am not a fan of the NightFall Edition. I prefer shiny chrome grill, trim and polished bright aluminum wheels.
June 17th, 2021 at 2:17 pm
# 1 It’s like having a pick pocket steal your wallet and give back some of your money and you’re supposed to be grateful. I’m sorry , but you shouldn’t have to bribe people to take something whether it’s a vaccine or a EV. If it’s so good people will get it on their own. If they don’t want one they shouldn’t be forced to pay for someone else to get it.
June 17th, 2021 at 2:33 pm
9 Is the 3rd row “all important”? I guess it is if you have 5 kids, but people I know would like a 3rd row delete option for Traverse and Pilot.
June 17th, 2021 at 4:31 pm
12) In this segment 3 rows of seating is what sells. It isn’t important to me, but it is important to the segment.
June 17th, 2021 at 4:31 pm
12) In this segment 3 rows of seating is what sells. It isn’t important to me, but it is important to the segment.
June 17th, 2021 at 5:20 pm
#1…huh?
June 17th, 2021 at 5:25 pm
13,14 The people I know who’d like a two row Traverse and Pilot want aslightly bigger vehicle for the extra cargo space, a “mainstream” brand for a better price, want a six cylinder engine, and would trade the 3rd row for a little more cargo space. Yeah, that doesn’t fit in with “segments” of CUVs, in the day of no choice of real options. Unlike in 1989, if I ordered a minivan now, two row seating would not be an option, and it’s not in bigger CUVs.
June 17th, 2021 at 7:18 pm
Do you think the big AV trucks with no safety driver will be programmed to play lane police like all the other big rig drivers when the lanes are narrowing down and the most efficient way to merge is the zipper method, totally wrecked by the big rig drivers who think they have a better solution?
June 17th, 2021 at 11:23 pm
I just saw a Sandy Munro video about the plumbing, and “frunk” parts of the Mach-E, and he was not favorably impressed.
June 18th, 2021 at 2:12 am
From a cursory look, Alix Partners is heavily biased towards North America, with Asia and Europe being more of a sideshow, which seems to feed right through into their forecast.
Inflation – has been picking up in Europe too, just like parts and sectors in Asia. It should be transitory startup hiccups. While one of the reasons for the cip shortage has been hoarding by Chinese suppliers after sanctions were announced.
EV incentives – They are meant to jump-start the transition by providing some certainty to business. Details and views on their implementation vary widely. Regulation or pricing in emissions (say in a revenue-neutral manner) are imperfect measures too. I’m on board with the goal and also think the US would pay dearly for missing the boat. Many “olde” industries are sunsetting.
I do think Ford/Lincoln could build some nice, really powerful big SUV hybrids with their present building blocks, even if they only bridge the next couple of years.
18 Kit – That’s the show I talked about some days back. Very instructive. Goes to show the internationally successful (and vital to Ford of Europe) Mach-E presently could only be built in Mexico at a competitive price. While the Tesla Model Y has superior engineering of the thermal systems that allow it to be made in CA and soon TX. Some larger takeaways right there…
June 18th, 2021 at 7:58 am
19,18 I just saw the Munro video last night, when it came on youtube after I watched AAH. Unless I heard something wrong, he said the ID.4 was even worse than the Mach-E in design inefficiency. Yikes.
June 18th, 2021 at 2:16 pm
I really wish Lincoln and Cadillac would consider a traditional hybrid. I don’t want to go with a full electric for the vehicle I need for long drives.