AD #3316 – Renault Could Sell Russian Ops for $0.01; U.S. Giving Dealers Tax Relief; GM & Ford Get Credit Upgrades

May 3rd, 2022 at 12:01pm

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Listen to “AD #3316 – Renault Could Sell Russian Ops for $0.01; U.S. Giving Dealers Tax Relief; GM and Ford Get Credit Upgrades” on Spreaker.

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Runtime: 10:00

0:10 GM Hints at European Return
0:53 $500 Million Worth of Luxury Cars Stuck in Belgium
1:29 Renault Could Sell Russian Ops for 1 Cent
2:05 U.S. Giving Dealers Tax Relief
3:26 GM & Ford Get Credit Upgrades
4:21 Top 10 Automakers in China
5:09 Mach-E Gets Towing, Charging Upgrades in Europe
6:38 Stellantis to Invest Nearly $3 Billion in Canada
7:03 Stellantis Doubles Down on Mobility Services
7:41 Raw Materials Aplenty for 14 Million EVs
8:25 Biden Admin Provides $3 Billion for EV Batteries

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31 Comments to “AD #3316 – Renault Could Sell Russian Ops for $0.01; U.S. Giving Dealers Tax Relief; GM & Ford Get Credit Upgrades”

  1. matttheviewer Says:

    Yes, climate change’s happening. But IMHO BEV’s while promising remain experiments in motion: short lived batteries, long charging times, limited infrastructure. For immediate future good hybrids, especially plug-in hybrids, make the mose sense. Ironic that the Chevrolet Bolt was one of the first plug-in Hybrids: they’re selling for $20K and up here in Oregon.

  2. Stu Says:

    I do think that a majority of people will eventually have an EV, but there are enough edge cases where an EV will not work that they will not be at 100% market share anytime soon. Personally, I make frequent trips over 400 miles in a day that do not have anyplace to charge near my destination. That, combined with my clients being unwilling to pay for my time sitting and waiting for a charge, means I need a hybrid at minimum for my work vehicle.

  3. Kit Gerhart Says:

    While the tow rating for the Mach-E will be 1000 kilograms in the EU, it will probably remain zero in the US. About everything sold in the US that is car-like has a tow rating of zero, even though the same vehicle is rated to tow about 2/3 of its own weight in the rest of the world.

  4. Lambo2015 Says:

    My thoughts on EV adoption is that most households have multiple vehicles. So its very likely that one of those vehicles will be an EV in the next ten years, and can be utilized as intended for local trips. Meanwhile I expect households to keep an ICE for trips, towing and all the things EVs are not great at. Which again means getting home charging is key not public chargers. Those are great back-up plans but my guess is most people will prefer to charge at home. So I don’t expect EVs to exceed 50% of new sales in the US for a long time. Much sooner in EU and other smaller countries.

  5. Lambo2015 Says:

    Oh and the photo of the Mach-E with that boat is likely at the very limit if not over for a 2200lb towing capacity. Single axle trailer is about 400-500 lbs and that boat is likely close to 2000lbs. More like you can tow a jet ski.

  6. Albemarle Says:

    3. I agree. I think the higher tow ratings in Europe, Australia & New Zealand are the result of smaller cars. In North America, if we have hobbies or businesses that need room and carrying capacity, we use a pickup or large van/SUV. Overseas, everyone seems to have at least one utility trailer to do the same job. It’s not always safe because they tow big trailers with small cars, but when you absolutely must get your boat to the lake, you do whatever it takes.

  7. Bob Wilson Says:

    Hummm, todays EVs have: ~100 times fewer moving parts; no brake, oil change, or coolant changes; 2-4x cheaper cost per mile, and; amazing low end torque at the wheels. Best of all, we’re seeing rapid, performance and cost reduction. No purchase decision away from an ICE has to be made instantly, today.

    ICE cars wearing out is expected and future purchases can be made then. Future EVs will be (already are) better than my 2019 Model 3. So let the price-performance drive future decisions.

  8. Albemarle Says:

    Difference in regular service costs between ICE and EV are eye opening. I just had a standard ‘B’ service on my Subaru Outback and it cost around $450. I will get an ‘A’ service in 6 months. We haven’t spent that much in 5 years with our Chevy Bolt and that includes semi-annual winter tire swaps. Dealers are going to have to find side lines to make up the difference.

  9. Kit Gerhart Says:

    5,6 I find it interesting that you can get a hitch for about any vehicle, even though all, or nearly all cars have a factory tow rating of zero when sold in the US. I got a hitch for a Geo Spectrum years ago, to tow a Laser sailboat. I’ve seen Priuses with hitches. There probably aren’t hitches for C7 and C8 Corvettes, because the exhaust would make it very difficult to design a hitch.

    I don’t remember reading caveats from the hitch manufactures, but they may warn you that towing with your vehicle could void the warranty. The hitch for my Spectrum was Draw-Tite. I don’t know if they would have sold enough hitches for that car in the US to justify designing and tooling the hitch, or if they’d sell them globally, in places where more people would tow with smaller cars.

  10. Kit Gerhart Says:

    8 Wow. I didn’t realize that Subaru had Porsche dealer-like prices for routine service.

  11. Dave Says:

    Ten years ago who would have dreamt that there would be as many chargers in America as there are today. The range of EVs of 400 miles could that have been imagined 10 years ago? How about 10 years from now will EVs be better, faster, smarter, cheaper. longer range better quality? One can always throw a gas generator in the back of an EV. Then as a show called Driver’s Seat said 30 years ago about the Ford F150 when you need a car, buy a car for the odd use for a truck like once a year there are places that will rent you a truck when you need it the same can be said about an ICE car.

  12. motorman Says:

    if you buy a EV and have to use it every day you better install a whole house natural gas or propane powered generator for times when the electrical grid power goes off due to a storm or you may not be going to work for a couple of days.

  13. Wim van Acker Says:

    @5 I fully agree with you, Lambo, and our household situation reflects exactly what you described: my wife’s daily driver is electric, mine is diesel-powered. At the current high fuel prices we put as many miles as possible on the EV. $0.16/mile of energy savings plus the lower cost of maintenance per mile.

    Over time EVs will get better range and will become a good solution for more users. The electrical power grid will also benefit over time: more EVs charging overnight will add to the load during night time, which is currently 50% of peak load. The more even the load gets the more base load power generation capacity can be used, which will allow for adding more nuclear power plants.

  14. Wim van Acker Says:

    @12 that would be true if you would ignore the weather forecast and have an empty battery when the storm hits.

    Following your “logic” the owner of a gasoline powered vehicle will also not be able to move because the gas pumps do not operate without electrical power.

    With a full battery and with reduced driving because of inclement weather an EV owner will be fine.

  15. motorman Says:

    # 3 that could be because of the number of lawyers we have in this country. we need tort reform if we want to catch up to the rest of the world so we can’t sue for everything that goes wrong

  16. Kit Gerhart Says:

    11 There are a lot more chargers than 10 years ago, but EVs are still impractical, even as commuter vehicles, for about 20% of US adults, those who live in apartments and condos with no home charging.

    Instead of renting a truck once every year or two when I need one, I have a 4×8 flat bed trailer for that use. It takes some storage space, but is very low maintenance, since I keep it in a garage, out of the weather.

  17. Kit Gerhart Says:

    15 Yeah, the lawyers are part of it, but also, the car companies want to sell more trucks, which are higher profit than cars, so they say not to tow with the cars they sell.

  18. Wim van Acker Says:

    @16 any vehicle type is not suited for a percentage of U.S. adults. Full size SUVs and pick-up trucks are impractical for people who drive into a large city’s parking structures. And so on.

    As to condo dwellers: many office buildings have charging stations. My son has installed his home charger after seven months and has driven his EV as his primary vehicle. Charged at his office every day for seven months without any problem.

  19. Kit Gerhart Says:

    18 Condo dwellers who work somewhere with charging, especially free charging, would have a good thing. I’m retired, so that’s not a possibility. Things will keep improving, and in a few years, there will probably be charging at my condo.

    As far as large pickups and SUVs, they’re impractical for 2/3 of the people who drive them, but they buy them anyway.

  20. Wim van Acker Says:

    @Autoline Team: thanks for listing China’s best-selling automakers. The top 10 adds up to 800,000 of vehicles sold in March. That is ten million on an annual basis. I may be wrong, but I thought that the Chinese market is thirty million per year, so the top 10 add up to roughly one third of the market. I would have expected more than that.

    I would be interested on any thoughts you have on this.

  21. GM Veteran Says:

    It would be great if you could do a follow up on China sales by OEM, or just provide an update on GM sales. I thought that GM was close to VW in China sales, but that probably includes Buick, Chevy, Cadillac, Baujun, and maybe Wuling. Toyota and VW sell most of their volume under one nameplate so they appear to sell more vehicles. I find it more useful to see both brand and OEM rankings. Also, what rank did Audi achieve? They were a sales powerhouse in China before M-B was able to get any traction. I was surprised to see M-B so high on the list.

  22. Wim van Acker Says:

    @19 I know, purchasing a vehicle is to a large extent driven by emotion. Fortunately for the automotive industry: if buyers would base their decisions on “so many pounds of steel, so many of glass, etc. and apply a fair $/pound price there would be no profit in the industry.

    I am one of those emotional buyers: I drive an off-road vehicle with 33″ wheels as my daily driver and on long road trips. Not comfortable, not spacious, loud, the off-road tires wear quickly when driving at 80 mph. So not the logical choice, but it looks great :-)

    I have a 56-year-old vehicle which costs a lot in maintenance and repair and drives worse than the cheapest new vehicles in the current market. It also looks great.

    Let’s say it is my way of giving back to the auto industry.

  23. Kit Gerhart Says:

    22 I have a lot different taste in impractical vehicles than you do, with the Corvette. It was my only car for about 4 months, and is not bad as a daily driver, as long as you don’t need much room. The seats are comfortable, and except on grainy pavement, it’s not terribly noisy. It gets decent mpg on the highway, near 30 mpg at 80 mph, but the short trip mileage is not good.

    My recently purchased Highland hybrid is much more practical, but I wish I could easily lower it. I don’t think are are lowering kits for them, and it would be pricey, if there were.

  24. motorman Says:

    # 9 one of the problems towing is that the wiring to the rear lights of some new cars will not support the additional lights on the trailer. you have to install a whole new wiring harness from the battery back. my grandson found this out when he was inquiring about a hitch and that is why you cannot buy a hitch for some cars

  25. Lambo2015 Says:

    24 Most vehicles without an already provided factory tow package do not provide towing harness and you just simply slice into the tail lights. So I doubt that has anything to do with why you cant find a hitch. Its probably more of not being able to attach to the unibody frame and avoid gas tanks spare tires or exhaust.
    I bought a hitch for my Cadillac CTS which only has a 1000 lb towing capacity but I only pull a 700lb motorcycle on a 150 lb trailer. But the exhaust exits in the center so I have to pull the wiring off to the side.

  26. Warwick Rex Dundas Says:

    I agree with John’s cynicism about political attempts to preserve the tax benefits of LIFO inventory valuation method. Dealers have minimised tax and maximised apparent return on assets employed for decades. Now the inventory shortage is working against them they are screaming for help.

    LIFO inventory valuation method is illegal here in Australia because it is a tax dodge. Instead of propping up the dodgy LIFO method, politicians should show some backbone and make it illegal.

  27. Sean Wagner Says:

    CHINA sales – I knew that GM had been losing sales in its only remaining overseas market of any significance, but dropping out of the top ten seems a very precipitous decline.

    According to carsalesbase, Buick sold 57K cars there in March.

    With BYD, Wuling, and Tesla, three predominantly electric marques are doing very well in China. The US is far behind.

    Cadillac could have started exporting the Lyriq to Europe a year ago and been quite successful, I think. Noone’s going to take much note of another EV now.

    By the way, Tesla is planning on adding another factory in Shanghai with an output of roughly 500K for export. Which pegs Tesla’s Chinese production at 1.5M soonish. Long term, it would have been smarter to put it in say Vietnam.

    I notice that “unmoderated speech everywhere-all-the-time” Elon once ranted on twitter against a lone Californian administrator doing her job, while it seems (don’t follow closely) not a peep about the unappealable, drastic and prolonged shutdowns in China.

    Tesla will need a cheaper car suited to markets other-than-the US, as mooted some time ago.

  28. JoeS Says:

    9 A receiver mounted rack is one of the best ways to carry bikes on a car so they are available for most everything.

  29. Kit Gerhart Says:

    24,25 The wiring for vehicles with LED rear lights might be too small to handle the current draw of incandescent lights. That might be a problem.

    As far as attaching hitches to unibody vehicles, I see a Corolla with a hitch almost daily, and I’ve seen Priuses with them. The exhaust would probably be a problem with two cars I’ve had recently, a C8 Corvette and a Porsche Cayman, though maybe few people would want to tow with either of those anyway.

  30. Lambo2015 Says:

    28 Yeah I didn’t think about the LED lights and if they can handle splicing in additional bulbs. My CTS does have LEDs and had no problems but others may not account for any additional load. I know some of todays trucks have the ability to do a trailer light check from the drivers seat. So the more sophisticated they get the more difficult it becomes to make modifications.

  31. Alex Carazan Says:

    CLIMATE CHANGE: Remember it used to be global warming scare. They changed it to climate change after emails were found to show the “scientists” were fraudulently making up the data and falsifying the models. The scientists that issued reports that were aligned with climate fear narrative got paid and are promoted!! The scientists that disagree are put down and told they are conspiracy wacks. 95% of mass media is owned by a few people! What % of the world does Blackrock and Vanguard own? Why?
    Follow the money. As Trump said it is all a hoax. The politicians create global crisis and use emotional fear on masses to get support for government regulations that take money from the people and printed out of thin air and fund pet projects by new companies that then donate big $$ back to their re-elections and give family member jobs and big $$. Why are most career politicians millionaires? Why do both the D and R parties BOTH keep growing governments (federals and state) and putting us into higher and higher debt and taking more of our $ in taxes and fees? (Now $30+ trillion federal operational debt)

    EV’s are next big $$$ tactic of funding. How many billions so far from government for EV’s? Follow those $$. Is there audit method? How many billions to Ukraine? How audited?

    EV’s have huge consumer value issues and that is why they don’t sell. They are NOT in large demand. They are in low demand. High price, low range, long charge times, little charge availability, high speed chargers are expensive, half of Americans don’t have a garage, long trips not practical, dealing with charge cord daily is a pain, range greatly reduced in cold and hot weather, range greatly reduced if towing a boat or trailers, electricity charge costs are not cheap, battery replacement cost is huge, electricity is generated by dirty fossil fuels, battery minerals on not sustainable, etc.
    And the value of EV’s is just not strong….few Americans want to accelerate to 60 mph in under 3 seconds and few Americans complain that their ICE vehicle is too loud. USA has no big pollution issue and ICE vehicles are getting cleaner and cleaner. So this is all a big push for no logical market driven reason. Again follow the $$ and follow the ownership of the battery mineral mines and you will find out what is really going on. The truth is coming out and many will not like the justice phase when it comes. Stay tuned – nothing can stop what is coming!

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