AD #3461 – Tesla to Cut Production in China; Ford Dealers Mad at EV Plan; Cute EV Costs a Bundle

December 5th, 2022 at 11:55am

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Listen to “AD #3461 – Tesla to Cut Production in China; Ford Dealers Mad at EV Plan; Cute EV Costs a Bundle” on Spreaker.

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Runtime: 9:29

0:08 UAW Ready to Battle Detroit 3
0:58 Ford Dealers Mad at EV Plan
1:46 Tesla Shanghai Sets Production Record…
2:20 …Tesla to Cut Production in China
3:26 Biden Promises “Tweaks” To EV Subsidies
4:20 BYD Targets Japanese Market
5:03 Cute EV Costs a Bundle
7:00 Chips Shortage Will Stretch To 2024
7:48 VW CARIAD Is Late & Expensive
8:27 Cadillac Celestiq Chief Engineer on Autoline After Hours

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23 Comments to “AD #3461 – Tesla to Cut Production in China; Ford Dealers Mad at EV Plan; Cute EV Costs a Bundle”

  1. Jim Haines Says:

    That Montage looks fugly

  2. Wim van Acker Says:

    @1 I second that motion

  3. Lambo2015 Says:

    1-2 Yep a $500,000 turd. Looks like they were going for a modern approach to retro design and didnt quite accomplish either.

  4. ChuckGrenci Says:

    1,2,3, Absolutely correct. After seeing the Montage at ‘half a mil’, it sure looks like Cadillac’s Celestiq is underpriced.

  5. Lambo2015 Says:

    Hey on the UAW, can the feds also revise the way we elect officers? Seems we are due for a change too.

    Ford is just the start as I believe many manufacturers would like to sell direct and start with this EV revolution. New product but same laws so I think when push comes to shove, they will lose in court and need to get the laws revised if they want to operate like that.

    Biden can “tweak” the EV subsidies but it sounds like proving the plant is burning bio-fuels may be a grey area. Is this strictly the assembly plant, the suppliers, transport? He may have to move some of those newly hired IRS agents over to actually regulate this.

  6. Kit Gerhart Says:

    1,2,3,4 Why would even one person buy that thing for $.5M with mediocre performance, mediocre range, and probably no parts available after a year?

  7. Wim van Acker Says:

    @6 I cannot come up with a reason why anyone would buy this

  8. Kit Gerhart Says:

    It’s interesting that Ford wants to encourage customers to order cars, while Toyota won’t even allow customer orders. There are some quite different philosophies going on here.

  9. Lambo2015 Says:

    8 I bet Toyota doesnt want to encourage the ordering of cars online to keep the complexity down. You get what the dealer has. Which one would think they can accomplish that with trim levels or option packages.

  10. Kit Gerhart Says:

    9 There are still (a few) different colors shown on the Toyota web site, and in most cases, a small choice of interiors. My Highlander is one of the two colors I would have ordered, “moon dust” which is a bluish silver, but since the seats are cloth, I would have ordered black, rather than medium grey which shows dirt too easily. Most of what dealers get are white, one of a few shades of grey, or black. Maybe Toyota will allow orders at some point, but I’m not holding by breath.

  11. GM Veteran Says:

    I would love to see the breakdown of how the dealer model adds $2,000 to the cost of a new vehicle. And, whose cost? The cost to the consumer or Ford’s cost to produce it? I think Farley is off base and is waging a campaign to get more control over the customer sales experience. I have not seen any evidence that Tesla is able to sell cars with lower sales and administrative costs than dealers can. In reality, it would be very difficult to compare them in a true apples to apples fashion. There are many things they do differently.

  12. Sean McElroy Says:

    More on Alpha Motors. If you read the press release for the Montage – https://www.alphamotorinc.com/press – all its custom-built/custom-made technology is “planned” without any real details. I don’t know how you can start making vehicles next year without those things already hammered out. I’m currently very skeptical about this company’s claims.

  13. GM Veteran Says:

    I think Tesla is going to continue to see sales declines in China. Consumers always want something new. The Chinese EV makers have been coming out with new products at a rapid rate. Tesla products have not changed since they set up sales there. Their lack of styling changes and relatively high pricing will continue to depress their sales. The Model 3 restyle can’t come soon enough.

  14. Ziggy Says:

    Ask Tony Roma why they made the Celestiq so ugly, it looks like an old pregnant Citroen. And the name reminds me of one of the drugs you see being peddled to older folks on late night TV. And don’t even get me started on that ridiculous price for something from Gunk Motors. Pathetic.

  15. Kit Gerhart Says:

    11 Back when dealers had a lot of cars sitting around in inventory, the “floor plan” interest could account for at least a few hundred dollars of that cost. Now, with little inventory, not so much.

  16. Buzzerd Says:

    @14 the Celestiq looks far better in person. I think it’s a very nice looking vehicle but the lines don’t show well in pics.

  17. merv Says:

    8 good point

  18. merv Says:

    11 I never really thought Farley was right for the job.

  19. MERKUR DRIVER Says:

    13) I thought the Model 3 & Y looked old when they were released.

  20. Drew Says:

    I might have old data, but a dealership distribution model involves floor plan inventory assistance (1-2%), sales commissions (3-4%), and dealer group advertising fund (~2%). This adds up to a 4 digit cost, some of which has already been addressed and some that won’t likely be eliminated completely.

  21. Drew Says:

    I might have old data, but a dealership distribution model involves floor plan inventory assistance (1-2%), sales commissions (3-4%), and dealer group advertising fund (~2%). This adds up to a 4 digit cost, some of which has already been addressed and some that won’t likely be eliminated completely.

  22. Bob Wilson Says:

    The Tesla reduction in Model UY production article has several inconsistencies. It reads like an article about a rumor. Regardless, in three weeks we should have the real production numbers. Then six weeks later, the Q4 2022 financials.

  23. Lambo2015 Says:

    22 This could be a very concerning for EVs and not just in China as Tesla already was losing shares each month. That wasnt a big concern as long as sales continued to grow. But now to be cutting production due to inventory building up. This is not good in an emerging market. As Sean stated though another round of Covid lockdowns in China could be attributed to an overall drop but I believe that just started. So its so hard to get a good picture of really whats going on with so many manufacturers having issues from CV and chip shortages and supplier shortages it has just made the last two years really wacky.
    When trying to establish how a company is doing there has to be about three asterisks to denote all the issues effecting production. I mean when ever Sean says sales are (whatever) over last year I kinda laugh anymore cause that means nothing. They could have been up due to competitors having more issues or down due to their own issues but the sales are fluctuating due to a few different reasons.
    But Tesla for a long time was able to sell everything they could make and this is the first time we have heard of them cutting back on production so maybe due to competition, lockdowns, EV sales dropping, or component shortages. Either way it should be concerning.