AD #3437 – Tesla Model Y #1 In Europe & China; VW Says Parts Shortages the New Norm; Nissan Reveals SEMA Concepts
October 28th, 2022 at 11:50am
Listen to “AD #3437 – Tesla Model Y #1 In Europe and China; VW Says Parts Shortages the New Norm; Nissan Reveals SEMA Concepts” on Spreaker.
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Runtime: 9:39
0:08 Tesla Model Y #1 In Europe & China
1:00 VW Says Parts Shortages the New Norm
2:04 Tesla & BYD Prove Automakers Can Make Money on EVs
3:27 VW Plans Two Entry Level EVs
4:19 Honda Civic Type R Starts At $44,000
4:46 Dodge Helps Customers Find Chargers & Challengers
6:27 EU Reaches Deal to Ban ICE Vehicles By 2035
7:07 GM Pushes Back EV Production Plans
7:54 Nissan Reveals SEMA Concepts
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TESLA MODEL Y #1 IN EUROPE & CHINA
Tesla is really on a roll. Last month the Model Y was the best-selling vehicle in Europe and in China. That’s quite an accomplishment. This the first time the Model Y outsold every other vehicle in Europe. Customers bought over 29,000 of them, up 227% from last year. That should really worry automakers in Europe because the company’s assembly plant in Berlin is still not up to line speed, meaning sales could potentially go even higher. One thing to keep in mind is that Tesla always has a sales surge at the end of each quarter, so it’s probably not going to maintain that pace this month. Meanwhile in China, Tesla is doing even better. It sold over 46,000 Model Ys last month, making it the best-selling car in China, and by quite a wide margin.
VW SAYS PARTS SHORTAGES THE NEW NORM
Remember when Covid shutdowns triggered the chip shortage in 2020? Purchasing executives thought it would get straightened out in about 6 months. When that didn’t happen, they thought it would be solved by the end of 2021. Then that stretched into 2022, then 2023, and then 2024. Now Volkswagen says that supply chain disruptions are going to be the norm, not the exception. It’s sitting on 150,000 vehicles worldwide that can’t be delivered because they’re short of parts. Ford is sitting on 45,000 vehicles it can’t sell. And GM is working down its inventory of 90,000 vehicles that were missing parts. Toyota says it will not hit its production target this year because it can’t get enough chips. But it’s not just a chip shortage. Car companies are running into other shortages including wiring harnesses, plastics, and even car badges. And that’s not going to get resolved anytime soon.
TESLA & BYD PROVE AUTOMAKERS CAN MAKE MONEY ON EVs
Some people say that automakers can’t make money on electric vehicles. But Tesla and BYD are proving them wrong. Last quarter Tesla posted a net profit of nearly $3.3 billion. That’s almost as much as General Motors made, even though GM sold 622,000 more vehicles than Tesla. Meanwhile, in China, BYD got rid of all its ICE-only vehicles this year, Now it only sells EVs and plug-in hybrids. That sure paid off. BYD saw its profit jump 350% in the third quarter. It made $788 million. And that shows that if automakers do it right, they can be very profitable selling electric vehicles.
VW PLANS TWO ENTRY LEVEL EVs
Are automakers trying to quench our fears of high prices for electric vehicles? Right now the average price for an EV in the U.S. is over $65,000, but recently we’ve seen a number of companies talk up lower-priced entry-level models. GM, Honda, Tesla have all done it and now we can add another, Volkswagen. The brand’s CEO says it’s introducing 10 new e-models by 2026 and one of those will be an entry-level vehicle that comes in two versions; one a small car and the other a sporty crossover. He adds that VW is also looking at creating a compact SUV based on the ID.3. The automaker is maintaining its goal to sell a version of the entry-level models that starts under 25,000 euros.
HONDA CIVIC TYPE R STARTS AT $44,000
Speaking of vehicle prices, Honda revealed that the all-new Civic Type R will start just under $44,000, including destination charges. Based on the 11th generation of the Civic, the Type R generates 315 horsepower, its most ever, from its 2.0L turbocharged 4-cylinder engine. And it will start arriving at dealers in the U.S. today.
DODGE HELPS CUSTOMERS FIND CHARGERS & CHALLENGERS
With inventory tight pretty much everywhere, finding the vehicle you want to buy can be difficult. Dodge wants to help with that. With nearly all 2023 Charger and Challenger models already allocated to dealers, it’s launching what it calls the Dodge Horsepower Locator. By going to DodgeGarage.com customers will be able to search all dealerships by zip code, model and trim level for vehicle availability. But this is not based on inventory. It’s based on dealer allocation. So, it shows you the vehicles that are still available to order through a particular dealer. And this includes special-edition models. Did dealer A just sell its last allocation of the SRT Jailbreak that you wanted? Well, now you’ll be able to see that dealer B down the street still has three available orders left. With the gasoline burning versions of the Charger and Challenger going away to make room for the EV models Dodge hopes this will take some of the mystery out of finding the exact model the customer wanted.
EU REACHES DEAL TO BAN ICE VEHICLES BY 2035
The European Union reached a deal yesterday to pretty much ban sales of internal combustion engine cars by 2035. It also requires a 55% cut in emissions by the end of the decade. But there are some exceptions. Niche automakers that only make a small number of vehicles, like Lamborghini, get a one-year delay to meet the targets. There’s also a provision to allow vehicles that run on synthetic fuels or e-fuels after 2035 but that agreement is non-binding. So unless that becomes a binding agreement, sales of ICE vehicles in the EU will be banned by 2035.
GM PUSHES BACK EV PRODUCTION PLANS
General Motors is pushing back its EV production plans. Earlier this year, CEO Mary Barra told investors that it planned to build 400,000 EVs in North America through 2023. But now she’s telling investors that they’re pushing back that target by six months and that it will reach that amount in the first half of 2024. Barra blames the delay on a slower than expected launch of its battery cell and pack production because it took the company longer than expected to hire and train its workforce at its new battery plant in Ohio. GM also has a goal of producing 1 million EVs in North America by 2025 but it’s not clear yet if this delay will impact that target.
NISSAN REVEALS SEMA CONCEPTS
Nissan has a couple of really cool concepts it’s going to show off at SEMA. The first is a 1987 Sunny pickup truck that’s painted in classic Nissan racing livery. But what’s really interesting about this truck is that it’s been fitted with a Nissan Leaf powertrain. It features a 147-horsepower electric motor paired with a 40-kWh battery pack. While we all know that’s not a lot by today’s EV standards, the setup is twice as powerful and generates 3-times as much torque as the original 4-cylinder that came in the truck. The other we want to highlight is all about looks. It’s a version of the all-electric Ariya made to look like a woody surfing wagon. We especially like the segmented side paneling and the big, bright, turquoise steel wheels. Nissan will have several other vehicles on display at SEMA, which kicks off on November 1st.
But that brings us to the end of this week. Thanks for making Autoline a part of your day and I hope you have a great weekend.
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Comments (18)
October 28th, 2022 at 12:11 pm
I like that Nissan Sunny pick up would like it even more with the 4.0 twin turbo from the new Z in it. I need the noise. The sound of Dyson vacuum cleaner just doesn’t do it for me.
October 28th, 2022 at 12:25 pm
Sean, so if VW and Ford have a tech sharing agreement, will the small VW EV spawn a new Ford Fiesta? Enquiring minds want to know!
October 28th, 2022 at 12:35 pm
Sean, The planned future bans on ICE cars appear to refer to new cars only. Is there anything to stop private importation of used ICE cars from other countries? If not, petrol heads will be able to get ICE cars for years after the bans start. Also, if Geely is willing to make ICE cars for Renault, why wouldn’t someone like Ford contract Geely to make ICE Fiestas for them. Hell, if Geely could make a new Fiesta that retailed for $10K, I don’t think Ford would have any trouble selling them. Even if there was no profit, it would be worth it for the fuel economy credits.
October 28th, 2022 at 12:38 pm
Thnx for the latest news. Sad to see Post-Covid has apparently permanently hobbled the Auto industry wrt inventory and timely delivery. Is it safe to say the future of auto retailing will be for customers to pre-order everything and wait months for delivery?
October 28th, 2022 at 2:30 pm
The Nissan panel concept with blue wheels is not my cup of tea
Reminded me of PT Cruisers
Amazing to see the demand for Ys, especially in China where there are legitimate competitors with vehicles available to buy, unlike here where EVs are mostly made of unobtanium. Bet there’s lots of people losing sleep over this.
October 28th, 2022 at 2:55 pm
4 “the future of auto retailing will be for customers to pre-order everything and wait months for delivery”?
Not with Toyota. Unfortunately, they won’t even let customers order cars, even ones made in the U.S. Meanwhile, you can order a Porsche Cayman from Germany, and a MINI from the UK or Holland, depending on the model.
October 28th, 2022 at 3:05 pm
5 Ys are a lot cheaper in China than in the U.S., but still probably pricier than the competition.
October 28th, 2022 at 4:21 pm
that’s a great program dodge has,easy to find exactly the vehicle you want
October 28th, 2022 at 4:31 pm
8 Normally, you could just go to any Dodge dealer and order a car, but now, with the end of an era, there are allocations as with Corvette and some Porsches.
October 29th, 2022 at 7:40 am
While the Dodge program sounds good, with the customer knowing what the dealer knows, there might be an opportunity for bad dealers/salespersons to do their worst, too. While most of my personal experiences with salespersons has been great, there were a couple that had me scratching head. My wife and I, after an exhausting search looking for a new vehicle for her, we found one she, not liked, but LOVED! The price was indicated on the site was, a little more then expected, but it was a loaded model and don’t forget, she LOVED it! They brought it to us to test drive and we were ready to sign for it, but when they brought us the paper work for the purchase, they had added an additional $3000 to the price! We looked over the site with them, pointing out what on the site said was the price of the vehicle. They said that this was true, but weeks before our interest, the dealer had bought this new vehicle from another new car dealership several states over. Though it was not stated on the site, they could not/would not sell this vehicle without the dealer getting back what they had spent to bring the vehicle there! We had lined up financing there our credit union and they said they could finance the list price, but $3K, it we wanted it, we’d have to come out of pocket. My wife had it and wanted to get the vehicle, but I could not that the strong arm tactic this dealer/salesperson was pulling. It was a cold several nights after that and my wife found another vehicle that she enjoys, though not as much as she felt she would in the other vehicle. My point is, yes one may know what the dealership has and this knowledge may prevent a lot of calling and driving around to locate your vehicle of choice. Yet, what’s to keep a dealership/salesperson with bad intentions, from adding off the books charges, since they know that they are they ONLY place with your vehicle of choice?! This isn’t new, for as some have said here, that they have experienced this, but this only seem like there is a potential for more of these types of shenanigans!
October 29th, 2022 at 10:59 am
10 Some Dodge dealers will no doubt engage in price gouging, as with some Ford and Chevy dealers, because they can, with the last of the Hellcat Challengers, etc. With Corvettes, there is a price vs delivery time tradeoff between dealers. The estimated delivery time for a Corvette now ordered where I got mine is estimated at about 3 years, because they sell them at MSRP plus sales tax, with no addons. There would be other dealers where you can probably get one in a year or less, if you are willing to make a big deposit and pay 20% over MSRP.
I’m one of those people who has always ordered cars, except with Toyotas, which you can’t order. That way, the price is clearly determined before the car even exists, and I get the car equipped the way I want, within the limitation of today’s lack of individual options.
October 29th, 2022 at 10:15 pm
10 You were secretive about what the cars were for your wife, but with many, or most brands, you could order what you want, pre-negotiate price, and get what you want if willing to wait a few weeks, or in some cases, months.
October 29th, 2022 at 11:27 pm
10 Is there any reason you won’t say what vehicle your wife “loved,” and the one she only “enjoys”? I don’t understand the secrecy.
October 30th, 2022 at 9:18 am
#11-13.) No I wasn’t being secretive, I just happened to recheck AD this morning and saw your posts. It was a Jeep Renegade 4×4 Limited, in a purple/black finish. What we purchased was a Renegade Jeepster 4×4, in a solid black finish. The Limited came with a lot of bells and whistles, but the Jeepster has not as mean. Don’t get me wrong, had the actual price had been indicated somewhere, Anywhere, on the web site, while we test driving the vehicle or in any of the conversations with the salesperson, we (I) would have been willing to get the CUV. But wasn’t until the time came to sign of on the purchase that the ‘actual price’ of the vehicle came into view! They where nice about it, but we’re a little insistent that go with their financing. I explained they we had our own set up through our C/U. When I to the paper work to the C/U, that’s when I learned about the $3000 difference in cost of that model and trim and what they were asking for it. The C/U said they would finance the actual price , but the rest we would have to pay out of pocket! When I spoke to the salesperson about this, he had to refer me to his manager, who was no available or the next day. After several calls, the day after that, I was able to speak with him and that was when he came clean about the additional cost! When I said that nowhere on the web site, or in any of the interactions with the salesperson, we’re there any mention of this the addition cost. He said that, while that be true, they would not sale the vehicle with that $3000 markup, so I could take it or leave it!
That was probably the worst dealership/salesperson experience I have ever had, in the years that I have purchased vehicles. Then next one, when we purchased the Renegade Jeepster, was probably the best! When we found the vehicle on line, while not as excited for this one as the other, she was still pretty pumped. I explained the salesperson our experience we had just went through and he was mortified. He made the whole interaction as easy and rewarding as I have ever experienced! He attentively listened and went well out of his way to make this buying purchase as easy as possible. It was like night and day, between the dealership/ salespersons. Most of the experiences I have had with salespersons and dealerships, save for that one and couple others, have been pretty good, especially that last one. Yet, I know that has not been the experience of many. The fact that so many want see vehicle purchases go the way of online sales is sad, for there are some good salespersons out there, along with loss of the person tough, interaction and having someone to speak with to answer questions, is important. ‘Chatting’ with a sales consultant on line, is not the same as speaking with the salesperson in front of you. And there are a lot of things a person might ask while in person with someone the have a relationship with, that they may not ask to an informal respondent, on the other side of an online exchange!
October 30th, 2022 at 9:52 am
14 Thanks for the info. I’ve had a few not-so-good experiences with buying cars, but for the most part, my experiences have been positive. The best have been with ordering GM cars with employee/retiree pricing and no trade, so there is no price negotiating at all.
Do you know if you can factory order a Renegade? I have ordered a few Chrysler products over the years, but all from US and Canadian assembly plants. I don’t know if it would work the same way with the Renegade from Italy. If you can order one, it would definitely take a lot longer to get than the usual ~6 weeks.
October 30th, 2022 at 11:54 am
15.) Sorry, that that I wouldn’t know. The Renegades were in each dealer’s inventory. The only experience with ordering a vehicle that I’ve ever come close to, was when my sister ordered her F-150. That is a story for another day! LOL
October 30th, 2022 at 1:25 pm
16 I have a lot of experience ordering cars from GM, Chrysler, BMW/MINI, and Porsche. The ones from GM and Chrysler made in North America have normally taken 5-7 weeks to arrive, the major exception being the C8 Corvette which took 13 months. The ones from Europe have taken 3-5 months.
October 30th, 2022 at 1:31 pm
17 continued. The 13 months for the C8 was from when I put the order together and made a deposit, but part of the 13 months was in a queue for an allocation.