AD #3467 – Cheap EVs Are the Kei Cars of China; NIO Opens Battery Swapping Tech to All; EPA Report is Misleading
December 13th, 2022 at 11:50am
Listen to “AD #3467 – Cheap EVs Are the Kei Cars of China; NIO Opens Battery Swapping Tech to All; EPA Report is Misleading” on Spreaker.
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Runtime: 9:35
0:00 EPA Report is Misleading
1:11 Switzerland Could Curb EV Use
1:49 NIO Opens Battery Swapping Tech to All
3:18 Kia Dealers Last in Consumer Satisfaction
4:13 Ford to Axe Fiesta, Focus
4:51 Hyundai Develops Delivery Robots
6:12 IIHS Tightens Up Crash Test
7:07 Honda Pilot TrailSport Tackles Off-Road Terrain
8:07 Cheap EVs Are the Kei Cars of China
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EPA REPORT IS MISLEADING
The U.S. EPA came out with its annual Automotive Trends Report that rates automakers by fuel economy and CO2 emissions. Overall, the industry got better. But it varies by automaker. Hyundai, Mazda, Volkswagen, General Motors and Stellantis got worse, while everyone else improved. Unfortunately, the EPA lumps all automakers together as if they have the same kind of vehicle line-up. But Subaru, which did the best, doesn’t sell full size pickups or medium duty trucks, while Stellantis, which did the worst, sells a lot of them. So of course Subaru is going to look better than Stellantis. Here’s our Autoline Insight. The EPA would serve the public much better if it used the footprint, weight and power output of different vehicles to make comparisons. That would give the public a much clearer view of which companies are doing the best job of boosting efficiency and cutting emissions.
SWITZERLAND COULD CURB EV USE
Europe is suffering through an energy crisis and some countries are considering drastic measures to ration gas and power. Switzerland is proposing to curb the use of electric vehicles, in a worst-case scenario, in order to conserve energy. Owners would only be allowed to use their EV for work, shopping, doctors’ appointments and religious services. But that’s not sitting well with the Swiss car importers lobby which blasted the proposal, saying it will discourage consumers from buying EVs and make them more likely to purchase an ICE vehicle.
NIO OPENS BATTERY SWAPPING TECH TO ALL
If battery swapping ever caught on it would solve two of the issues holding back EV adoption: range and charging time. But for it to catch on, automakers would have to agree on common battery sizes and connection points. And none of them are willing to do that. NIO, the EV startup, is building swapping stations all across China and even started building them in Europe. But to make those stations economically viable they’re going to have to service more than just NIO’s cars. And that’s why NIO’s CEO William Li, announced that they’re opening their swapping technology to anyone who wants to use it. Let’s see if anyone bites. After all, in 2014 Elon Musk said anyone could use Tesla’s patents and no major player has taken him up on that yet.
KIA DEALERS LAST IN CUSTOMER SATISFACTION
Does Kia have a dealership problem? The brand topped J.D. Power’s Dependability study and scores well with customers in vehicle satisfaction, but it recently ranked last in a Sales Satisfaction Index. Steve Center, the COO of Kia America, says of its 780 U.S. dealers, “There is no choice but for them to improve.” He says owners expect a high level of customer experiences and technology at its dealers, so they’ll need to invest in more modern and capable facilities, which includes selling and servicing EVs. For its part, Kia is adding more features into its vehicles, like the updated Seltos and Telluride, and along with the building upgrades it hopes to boost sales per dealer, which currently sits at about 1,000 per year.
FORD TO AXE FIESTA, FOCUS
We recently reported on Ford’s decision to axe the Fiesta, but that’s not the only passenger car it’s getting rid of. It’s also going to discontinue the Focus. The Fiesta leaves the European market next year and the Focus will follow in 2025. The move will clear up space for more crossovers, SUVs and electric vehicles. Fiesta production in Germany will be replaced by a mid-size electric crossover based on Volkswagen’s MEB architecture sometime next year. And Ford has plans to roll out 9 new EVs in Europe by 2024.
HYUNDAI DEVELOPS DELIVERY ROBOTS
Hyundai is expanding its autonomous driving technology beyond passenger vehicles. It’s launching two pilot programs with an autonomous delivery robot. One is at a hotel in Seoul, South Korea that’s being used to deliver food, drinks and other amenities to guest rooms. And the other is for a food delivery service. The small pod-like robot is built on a modular platform that combines the steering, braking, in-wheel electric drive and suspension hardware. It uses lidar and cameras to move autonomously and it features deep-learning technology to recognize its environment. Hyundai says it’s going to use these tests to expand its autonomous robots to more businesses in the future.
IIHS TIGHTENS UP CRASH TEST
The Insurance Institute for Highway Safety is changing its moderate overlap front crash test to include rear seat passengers. In the original test, a vehicle hits a barrier at 40 MPH with a male dummy in the front seat. Forty percent of the total width of the vehicle hits the barrier on the driver’s side. The new test adds a second dummy representing a small woman or 12 year old child in the second-row seat behind the driver. And that really makes a difference. The IIHS crash tested 15 small crossovers and all of them earned good ratings in the original test. But only two, the Ford Escape and Volvo XC40, earned a good rating with the new one. The IIHS says the vehicles that fell short don’t provide enough protection for the rear passengers’ head and neck area.
HONDA PILOT TRAILSPORT TACKLES OFF-ROAD TERRAIN
More rugged vehicles appeal to customers’ increasing sense for outdoor adventure as well as generate more revenue for the company, which is why I think we’re seeing Honda, which is not known for its off-road prowess, coming out with vehicles that are meant to go off the beaten path. It’s showing how the all-new Pilot TrailSport, which offers an off-road tuned suspension, an additional inch of ground clearance and all-terrain tires, tackling trails in Moab, Utah and Sedona, Arizona. That package also includes skid plates under the front and fuel tank of the vehicle as well as an expanded AWD system that adds a Trail Mode. This mode turns on the surround view cameras as well as the ability to send more torque to the wheels with traction, which is useful for washed out sections of trail. This is early days of Honda’s TrailSport trim, which is supposed to get more capable as time goes on.
CHEAP EVs ARE THE KEI CARS OF CHINA
Mini EVs are all the rage in China and that could pose a problem for automakers who only sell full-size cars. The best selling car in China is Wuling’s Hongguang Mini EV, which sells for under $5,000. Now comes the Wuling Air, which starts at $9,700, and the Geely Panda which only costs $5,700. And there are plenty of other cheap EVs in the market. It kind of reminds us of the popularity of kei cars in Japan: small, cheap and cheerful. Kei cars account for about 40% of all the cars sold in Japan. Could the same thing happen with mini EVs in China? We think it could. And here’s the problem. As the old saying in the auto industry goes, “small cars, small profits.” That means a big chunk of the Chinese market could go to car companies that barely make any money. (PICTURED: Geely Panda)
And that brings us to the end of today’s show. Thanks for tuning in.
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Comments (28)
December 13th, 2022 at 12:12 pm
The EPA is run by enviro nuts that have never known to be fair and the continued war against America is just another day
December 13th, 2022 at 12:12 pm
The EPA is run by enviro nuts that have never known to be fair and the continued war against America is just another day
December 13th, 2022 at 12:18 pm
I work with a lot of people who own trucks and most my friends do also and a lot of them have been getting into 3/4 ton trucks which doesn’t help matters either.
December 13th, 2022 at 12:23 pm
Sean, I think you missed the EPA’s point. The GOAL is to reduce total pollution, not to make a cleaner gigantic vehicle. If each vehicle gets cleaner per unit of fuel, but uses more fuel because it is ridiculously large, then ZERO progress has been made. Stellantis should score poorly, based on product mix alone.
December 13th, 2022 at 12:29 pm
North America could benefit greatly from Kei style cars, but the government can’t seem to understand the problem well enough to see that. They ban Kei cars because they aren’t as safe in crash tests, while still allowing motorcycles, ATVs and ebikes that are far worse. Kei cars make perfect sense in urban environments that don’t have a lot of freeways. (ie New York makes more sense for Kei than LA)
December 13th, 2022 at 12:34 pm
GM and Ford will look better in those EPA numbers, as they increase the number of BEVs they sell. I assume that the published numbers are weighted based on the number of each vehicle model sold. Vans had a big jump of 3.9 mpg, no doubt the result of Toyota Sienna switching from a V6 powertrain to 4 cylinder hybrid for all production.
December 13th, 2022 at 12:43 pm
4 I dont think Sean missed the point at all. The EPA doesnt take into account consumer demand. If consumers want trucks and continue to buy trucks then they will go to the manufactures that offer what they want. So a company like Ford that sells a bunch of F-150s and are making strides to improve emissions and increase MPG dont get the credit in the overall picture. They might cut the emissions of the truck more than Subaru and sell 300,000 more than Subaru thus making a larger impact than Subaru. But it doesnt look that way in the way that its presented.
December 13th, 2022 at 12:46 pm
No surprise about Stellantis. They are where they want to be and proud of it.
Has anyone from this company ever come on Autoline and bragged about efficiency and pollution control?
It’s all about vertical rock walls for Jeep, how much the Ram truck can tow, and helephant crate motors.
December 13th, 2022 at 12:47 pm
4 Stellantis does poorly, not only because of the product mix, but all of the Jeep models are worst-in-class in fuel economy, or nearly so.
December 13th, 2022 at 12:49 pm
At this point what difference does it make what the EPA says anyway. Within 12 years the combustion engine will be regulated out of existence. Things could stay exactly the way they are with no improvement for the next 12 years and have minimal impact.
December 13th, 2022 at 1:00 pm
@1, “war against America”: the U.S. produces 18 of global oil production while having 2% of global proven reserves under its land mass and water bodies. So we are running out of oil at ten times the world average speed. The largest oil reserves are with Venezuela, Canada, Saudi Arabia, Iran, Russia and Iraq.
I suggest you think this through and reflect on who puts our future at risk: those who try to contribute to reducing oil consumption or those who do not understand our situation, like you.
December 13th, 2022 at 1:01 pm
@11 18%
December 13th, 2022 at 1:46 pm
Sim, and 5 of those 6 countries hate the US.
The reality is that all natural resources are limited in supply. And I recognize the creativeness/inventiveness of humans to develop new technologies to replace dwindled resources. Nevertheless, everyone in every country should have the virtues efficiency and conservation.
December 13th, 2022 at 1:48 pm
When considering the last-place position of the Kia brand and dealers in Sales Satisfaction it would be useful to remember that the past year has been a time of excessive Kia dealer greed. With “market adjustment” add-ons to the price of Sorento, Sportage, electric, hybrid and plug-in hybrid models, and nearly everything else in the product line, it’s no wonder that many Kia customers are dissatisfied with the sales process.
While the market has grossly favored the dealer for over a year now, there’s probably no brand that has milked the situation as thoroughly as the Kia dealer body.
They are enjoying huge profits recently, but with the removal of the electric vehicle tax credits and no credit available for cars built outside of North America, there will be some Kia dealer suffering ahead. Well deserved, I might add.
December 13th, 2022 at 2:02 pm
@13 I fully agree with you
December 13th, 2022 at 2:06 pm
14 I wouldnt say there is no tax credit available to Kia as it seems the details of the IRA are still being worked out. But does include up to $4000 for buying a used EV and that doesnt require it to be manufactured in the US. So Kia could benefit by using new models as Demos knock a grand off the sticker and get $4000 more in tax rebates. Naw they woulnt do that?
December 13th, 2022 at 2:12 pm
13,15 Me too.
14 I wasn’t aware of Kia dealers’ being high in customer rip-off rate, but would certainly explain low dealer satisfaction. My best dealer experience in years, was with the Chevy dealer where I ordered my C8 Corvette. I paid MSRP plus sales tax, but no add ons of any kind.
December 13th, 2022 at 2:14 pm
How do they figure those EPA numbers ? Is it by taking one of every vehicle model offered and the totalled and averaged or do they compile every vehicle sold and add the numbers that way ? That would be the most accurate method of total emissions IMO . Because as a example say a manufacturer makes all EVs except for a massive SUV and truck which out sell those EVs by a 10-1 margin Those ICE numbers should completely upset the average .
December 13th, 2022 at 2:53 pm
18 The numbers are based on production volumes of each model.
December 13th, 2022 at 3:05 pm
Moab and Sedona,two very amazing must see places
December 13th, 2022 at 3:25 pm
Regarding Kia’s poor Sales Satisfaction score…. In the last 2 years, nearly all OEMs/dealers experienced low inventory and extracted higher margins. But why would Kia’s SSI rate poorer than others?
I have a non-scientific observation. I believe Kia (and Hyundai) enjoyed relatively better inventory supplies, so did this lead to some cockiness/arrogance in the sales process?
December 13th, 2022 at 3:27 pm
13,15, 17 I try to be as efficient as possible with all energy sources.
14 I tried to buy a new Telluride last year, KIA dealer would not show me the Monroney sticker, quoted “market price” about $5k over MSRP loaded with a bunch of aftermarket add-ons which I didn’t want, so I simply walked away. a few months later I found a gently used/low mileage Telluride at a significant discount compared to the dealer.
December 13th, 2022 at 3:30 pm
Wait… WHAT? Europe in an energy crisis and I thought the story would be to ration gas only and the electric owners would be fine… yea, buy electric. But the BEV owners would be restricted ??? You can bet with the vehicle connectivity you could be tracked for enforcement, if it got that bad. And with future digital only currency, be punished, fined or cut off from your funds if you don’t obey. I know, this sounds like crazy conspiricy stuff, for now….
December 13th, 2022 at 4:07 pm
@23 Western Europe is having a natural gas problem. Natural gas for power generation and heating. That has nothing to do with gasoline.
Many Americans refer to gasoline as “gas” and therefore people erroneously think it is actually a gas, but it is not. Gasoline is a liquid mixture of C7 and C8 and natural gas is a gaseous mixture of C1 and some C2.
C7 – a molecule formed by 7 carbon atoms, etc.
December 13th, 2022 at 5:24 pm
Well in the end try as you/they might its all about profit kind of sad.
December 13th, 2022 at 9:04 pm
24 C8H18, octane.
December 14th, 2022 at 5:29 am
Technical articles about the Fusion ignition announcement came out. There is a hard technical problem of laser inefficiency that might be addressed by ‘free electron lasers.’ Admirable work, their announced technology is far removed from a practical energy source today.
We have yet to use the existing fusion reactor 93 million miles away. Couple wind, water, and solar to efficient energy storage and we have a ‘good enough’ solution today. Renewable energy and storage solutions are here today and any technician or engineer can master. Use today’s ‘low hanging fruit’ while research continues on next generation fission and fusion power.
December 14th, 2022 at 10:52 am
I like this concept for using fusion energy, but it must not be very cost effective, given its limited use.
https://www.eia.gov/energyexplained/solar/solar-thermal-power-plants.php#:~:text=Solar%20thermal%20power%20systems%20use%20concentrated%20solar%20energy&text=In%20most%20types%20of%20systems,a%20generator%20to%20produce%20electricity.