This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

RUSSIA CUTS EU GAS, THREATENS CAR PRODUCTION
Russia is slashing its exports of natural gas to Europe and that is a direct threat to European car production. Automakers rely heavily on natural gas for their manufacturing operations, especially for the paint ovens in their assembly plants. German automakers are most at risk. Russia is Germany’s main source of natural gas, providing nearly one-third of what it uses. Reuters reports that Mercedes and BMW are scrambling to cut their gas use and find alternative sources of energy. German manufacturers are turning to electricity and potentially even to oil and coal to replace natural gas and keep their plants open. But if that isn’t enough, automakers may be forced to cut some production or even move it overseas. Russia says it can’t ship more gas because of a pipeline problem, but the EU believes it’s in retaliation to its sanctions over Russia’s invasion of Ukraine.  

CAR DEALERS REPORTING RECORD PROFITS
Last year new car sales were down significantly, and this year is even worse. But even so, this is the best time ever to be a car dealer. They’re making the highest profits they ever have. Penske Automotive just reported an all-time record profit even though its revenue was down. Autonation and Lithia Motors are also enjoying strong financial results. A key reason for this profitability is that dealers have raised prices so much it’s more than offset the fall-off in sales. But that’s not the only reason. Ward’s reports that dealers are doing a lot more service work, mainly because customers are getting repairs done that they had postponed. With new car prices so high and inventory so tight, many people have decided to fix up the vehicles they have. Also, people are driving more which means their vehicles need more work. The US Federal Highway Administration says motorists drive about 288 billion miles a month, and through the first 5 months of the year that’s 3.8% higher than a year ago. 

HONDA TEASES PROLOGUE BEV
Honda is teasing out some of the design details of the Prologue, the BEV that it’s working on with General Motors. It’s being designed at Honda’s studio in California, and here’s some of what it’s showcasing.

Sang-hyuk Yan, exterior designer: “Designing an electric vehicle gives us more freedom than with an internal combustion engine. We can stretch our imaginations, especially to the front end. At the same time, Prologue should look comfortable in the showroom with other Honda SUVs. So we gave the Prologue a longer wheelbase, shorter overhang and capable tires to create sporty proportions and a stronger stance.”

The Prologue goes on sale in 2024. Honda will introduce EVs based on its own architecture in 2026 and in 2027 is going to come out with a low cost EV that it’s co-developing with GM. And that suggests it will cost under $30,000 since GM already announced that’s what it’s going to charge for the electric version of the Chevrolet Equinox.

MINI PREVIEWS EV STYLING
MINI is going to launch a new crossover that will slot between the 3-door Cooper and larger Countryman. And the new Aceman Concept is a preview of what that model will look like. In fact, it shows the design direction of all of MINI’s future model generations as it moves to an all-electric lineup. Note how the grille has been filled in with body color to signify its electric powertrain. And it still has MINI’s cute and cuddly face, but black cladding around the lower part of the vehicle and puffed out and blocky fenders, also added a little ruggedness. Here’s something that might not have jumped out to you right away. There’s no chrome. Instead, it used lighting to make certain aspects of design pop. Speaking of things that pop, while most automakers are going for a floating rectangular screen look, MINI was inspired by its own interiors and went for a floating circular screen. It’s definitely an interesting look. We’ll be waiting to see how much of the Aceman’s design makes it to the production model.

TOYOTA’S BATTERY SWAPS FOR TRUCKS
Toyota and a couple of transport companies in Japan are teaming up to develop swappable battery packs or what they call cartridge batteries for commercial vehicles. They want to lower the cost of EVs by limiting the battery capacity, which could easily be expanded at a later date, as well as reduce charging time, demand on the grid and the need for more charging stations. The ultimate goal is to commonize cartridge batteries and recharging systems for vehicles ranging from all-electric mini-commercial vans to BEV light-duty trucks.

HYUNDAI GROUP TO DEVELOP LUNAR ROVERS
You might say the Hyundai Group has some out of this world ideas, but this next one literally takes us out of this world. Hyundai and Kia signed agreements with 6 Korean research institutes to develop lunar rovers that can explore the surface of the moon. The two automakers will use newly acquired Boston Dynamics in the area of robotics as well as their expertise in software and hardware to build the rovers, which they hope will lead to applications for mobility solutions down here on earth.

BYD TO ENTER JAPANESE MARKET
Due to a variety of reasons, foreign automakers don’t do well in Japan. They only account for about 5% of the Japanese market. But that’s not stopping Chinese automaker BYD. Next year it will launch three BEVs in Japan, first with the Atto 3 in January, then followed by the Dolphin and Seal models later in 2023. Japanese automakers really haven’t pushed EVs very much, so BYD may find the door wide open for Japanese customers who want to buy an electric car.

NHTSA OPENS INVESTIGATIONS INTO GM, FORD & STELLANTIS
The National Highway Traffic Safety Administration is opening five different safety investigations involving nearly 2 million GM, Ford and Stellantis vehicles. The largest probe involves more than 1.3 million Jeep Cherokees from 2014 to 2020 because a water leak can cause the electronic parking brake to engage while the vehicle is in motion. NHTSA is also investigating 2019 to 2021 Chrysler Pacificas over a transmission issue that can cause a loss of power. And it’s looking into 290,000 Dodge Journeys and Jeep Compass and Patriots over stalling issues. The new Ford Bronco is under investigation over engine failures. And an issue with the rear-view camera in nearly 190,000 GMC Acadias and Cadillac XT5s and XT6s is also under review.

HOW BMW PLANS TO CUT CO2 EMISSIONS
BMW wants to slash its CO2 emissions by 40% per vehicle by 2030 across the entire value chain compared to 2019. And by 2050, it wants to be completely climate neutral. One way it plans to achieve that is by using recycled materials in new vehicles. Currently, 30% of its cars are made with reused materials and it plans to increase that to 50%. BMW will also increase the use of materials produced with green energy. Starting in 2025, it will no longer purchase steel made using fossil-fuels, only steel produced with natural gas, hydrogen or “green” electricity, which BMW says reduces CO2 emissions from steel production by 95%.

But that’s it for today’s show, thanks for watching.