This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
FARLEY SAYS FORD WILL NO LONGER BE ‘ALL THINGS TO ALL PEOPLE’
Ford held its capital markets event earlier this morning where it reiterated its full-year guidance of $9 billion to $11 billion in adjusted earnings before interest and taxes and $6 billion in adjusted free cash flow. The company also said it expects to hit an EBIT margin of 10% in 2026. And here’s how it expects each of its business divisions to do this year. It expects Ford Blue, its ICE division, to reach an EBIT of $7 billion; its commercial division Ford Pro is estimated to hit $6 billion and its EV business, Ford Model e, will lose $3 billion this year. Ford also announced that it signed three lithium supply deals to help it meet its target of producing 2 million EVs by the end of 2026. And here’s a couple of interesting quotes from CEO Jim Farley. He said that “the days of being all things to all people are over at Ford.” And that the automaker will focus on connected, digital products that are tailored for owners instead of competing over “complex hardware in over-served vehicle categories.”
TOYOTA TOPS SUPPLIER RELATIONS SURVEY
Suppliers can account for up to 70% of the content in a vehicle, so having good relations with them is critical for car makers. And once again, supplier companies said Toyota is the top OEM to work with in North America according to Plante Moran’s annual study. The survey of supplier companies looks at supplier trust and return on investment. Honda is ranked second and General Motors was rated at number three. Ford saw the largest drop among OEMs and that’s because suppliers found it more difficult to work with because of its decision to separate its ICE and EV businesses. Suppliers say the biggest challenges they face working with automakers include supply chain disruptions, new joint ventures for battery plants and goals relating to environmental, social and governance.
U.S. & AUSTRALIA REACH CRITICAL MINERALS DEAL
The U.S. wants to lessen its reliance on China for raw materials needed to produce electric vehicles. And it just struck a deal with Australia to help it develop its critical minerals industry. Australian mineral suppliers will now be treated as domestic suppliers under the U.S. Defense Production Act. And that means battery materials sourced from Australia will qualify for EV tax credits provided by the Inflation Reduction Act. Australia supplies around half of the world’s lithium and other rare earth minerals.
LAKE SUPERIOR REGION COULD BECOME NICKEL HUB
And speaking of EV battery minerals, we could see more mining in the Great Lakes region. According to the U.S. Geological Survey, the states bordering Lake Superior; Minnesota, Wisconsin and Michigan, could have as much nickel as Russia and Canada, which are some of largest producers in the world. Mining companies and federal researchers are now conducting surveys to try and determine the feasibility of mining for the nickel. Indonesia is the top nickel producer in the world, providing 42% of global supplies, China is next at 16%, followed by Canada and Russia at 6% and 5%, respectively.
BMW REVIVES CLOWN SHOE DESIGN
My honest reaction to seeing this next concept was, ‘Oh my gosh! The BMW Clown Shoe is Back!’ For the uninitiated, the Clown Shoe or Bread Van or Sports Shoe refers to the shape of the BMW Z3 coupe that first came out in 1998 and ran until 2002. It’s always been a polarizing design, but personally I love it. That’s why I was so excited to see the all-new Concept Touring Coupe. It’s like a new-age version of the Z3 coupe that could make its way into very low-volume production if BMW feels there’s enough demand. And it wouldn’t be that difficult to pull off because it’s based on the Z4. That means it also doesn’t have a massive version of the twin-kidney grille, which was an initial worry having first seen the car in silhouette. Let us know what you think in the comments, but I’ll tell you, I like it a lot.
LEXUS TEASES NEW SMALL CROSSOVER
Lexus teased that it’s going to reveal an all-new model, called the LBX on the 5th of June. It doesn’t give any details, but reports are it’s a small crossover that’s based on the Toyota Yaris Cross. So, the LBX would slot below the UX and would give Lexus 7 utility vehicles in its lineup, including the UX, NX, RZ, RX, GX and LX. I don’t know about you, but that sounds like too many?
BRIDGESTONE REVEALS NEW EV TIRE
Bridgestone, which is one of our sponsors, introduced a new replacement tire for EVs in North America. The Turanza EV tire was designed specifically for electric vehicles and it features 50% renewable and recycled materials, including recycled black carbon from end of life tires, synthetic rubber from recycled plastic bags and bottles, renewable soybean oil and rice husk silica from rice husks. The tire was developed at Bridgestone’s tech center in Ohio and it will make the tire at its plants in North Carolina and Mexico. The tire will initially be available for all of Tesla’s models and the Ford Mustang Mach-E and next year it will be available in 13 more sizes.
FIAT HIGHLIGHTS NEW DESIGN DIRECTION
Fiat is calling its future design direction ‘Lingotto Inspired.’ Lingotto is the name of Fiat’s iconic manufacturing facility built in 1923 that for many years had a functioning test track on its roof. The brand’s CEO Olivier Francois says highlights of its new design theme will include less material and more space, which is applied to a very futuristic-looking seat and interior concept. He also says the windows on the dome-like structure on top of Lingotto, called La Pista 500, will inspire distinctive features, which looks like it could lead to a new lighting signature. Fiat says its new design language will start showing up next year.
CADILLAC NAMES ESCALADE EV, ESCALADE IQ
The name of the all-electric Cadillac Escalade just might have you saying, “ick.” As you probably know, all of Cadillac’s new EVs end in ‘IQ,’ which is supposed to be pronounced “ick.” Lyriq. Celestiq. But the Escalade doesn’t seem to be following that naming structure and is called the Escalade IQ. So, in order to keep things cohesive, I’ve come to enjoy calling it the Escalade-ick. Cadillac says the model will be revealed later this year.
But that brings us to the end of today’s show. Thanks for tuning in.
Share
Permalink
Comments (33)
May 22nd, 2023 at 12:10 pm
What does “We will not be all things to all people” even mean? Henry Ford must be rolling over in his grave!
May 22nd, 2023 at 12:14 pm
Lexus doesn’t need another crossover. They need a new, better IS, and they need to revive the wagon/hatch like they had with the first generation IS. No lift kit and body cladding needed.
May 22nd, 2023 at 12:14 pm
1 It means that Ford is now Trucks Are Us.
May 22nd, 2023 at 12:19 pm
I LOVE the BMW! Won’t be able to afford it but hope they build it. Big fan of Shooting brakes.
May 22nd, 2023 at 12:19 pm
Ford begins the end
May 22nd, 2023 at 12:29 pm
“Clown Shoe”
I hadn’t heard that before, but yep, that about sums it up. I must say that this refreshed version does look more appealing than the original.
On the number of Lexus SUV’s, you’re right, Sean. They’ve got too many. They’re heading down the same road as Mercedes with its 99 models. Do car companies have nothing better to do than needlessly add cars to their lineups? They need to take a page from Costco. They stay lean and mean by offering only one or two brands of each item they carry. Having something for everyone leads to bloat.
May 22nd, 2023 at 12:42 pm
@1 – It means Ford is admitting it is no longer relevant to 90% of the market. It is a self-inflicted and lethal wound of poor quality, running away from competition, and an abysmal investment history (PAG, Argo, Rivian).
May 22nd, 2023 at 12:51 pm
6 All of those models, but gaping holes in everyone’s lineup. No car height wagons. Even Volvo did the lift kit treatment to the V60, except for the $70K+ performance version.
Now, the only non-specialty car left from the former big three is the Malibu, which will probably soon be gone. I haven’t heard of plans for a replacement.
The only two doors are the handful of sports cars, and a few expensive two doors from luxury/premium brands like BMW, Mercedes, and Lexus. The 1960s were the golden age of car choice in the U.S., both for body styles, and for color choice.
May 22nd, 2023 at 1:15 pm
I love the old clown shoe and would love to see an updated version!!
May 22nd, 2023 at 1:23 pm
Ford, like the auto industry in general is becoming bland as white bread. No longer “all things to all people”, they will become “nothing to no-one”!
The BMW give me 1967 Jaguar XK-E vibes.
So how much longer before all other countries start whining about Australia getting credit under the IRA and we make exceptions for everyone? Eventually watering it down to provide no incentive to make batteries locally. This will make the IRA just another cash cow with empty promises of stimulating national growth.
May 22nd, 2023 at 1:24 pm
I didn’t much care for the ‘clown shoe’, and not real fond of the new one either. I’ve seen a few in the wild but don’t think the new one will sell either.
Cadillac, and I’m a fan of their vehicles, never seems to disappoint when naming them. Even when they announce a uniform nomiclature, they deviate from uniformity (to a fault).
May 22nd, 2023 at 1:47 pm
I’ve seen one or two of the handful of hardtop Solstices made. Those are probably more rare than the BMW.
May 22nd, 2023 at 2:30 pm
my love for BMW’s has faded the past decade or two
May 22nd, 2023 at 2:43 pm
hats off to Cadillac for retaining actual names instead of the stupid alphanumeric stuff the others are doing. Escalade IQ I can live with!
May 22nd, 2023 at 2:52 pm
Coupe de Ville was a good name.
May 22nd, 2023 at 3:12 pm
12) 1,266 Solstice coupes made. They are a very rare site. They looked pretty good. I liked it better than the convertible.
May 22nd, 2023 at 3:18 pm
Sean,
What makes a tire an EV tire? Is there something about it that precludes it from being used on an ICE vehicle? Or is this just more marketing bs from yet another one of your sponsors? Inquiring minds want to know….
May 22nd, 2023 at 3:29 pm
12&16… I prefer the Saturn Sky. But the Miata was a better vehicle in every aspect.
May 22nd, 2023 at 3:48 pm
17 Tesla uses special foam lined tires that are supposed to reduce road noise. I don’t know if other EVs use special tires.
May 22nd, 2023 at 3:50 pm
18 I remember Solstice/Sky having no storage space at all. That kept me from buying one when they were new.
May 22nd, 2023 at 5:16 pm
Does Farley’s comment mean they will drop some ICE vehicles to introduce more EVs? Right now Ford has one of the most robust and interesting lineups of vehicles that indeed can appeal to just about any taste and need. Kill off the profitable ICE vehicles to produce money loosing EVs. Sounds like a sound business decision to me!
The IRA is a joke. Lets run up the deficit (and increase inflation) paying everyone our tax dollars to build and buy EVs. I say let the market decide. Now the government is in the auto industry.
May 22nd, 2023 at 6:42 pm
10 Australia has had a free trade agreement with USA for 20 years and is a significant trading partner. The latest agreement makes it more attractive for US mining companies to invest in mining operations in Australia for rare earths, so vital for EVs. This has significant geopolitical benefits for both companies by reducing reliance on Chinese sourced battery raw materials.
May 22nd, 2023 at 8:16 pm
21 “Right now Ford has one of the most robust and interesting lineups of vehicles that indeed can appeal to just about any taste and need.
Are you serious? Ford dropped all of their cars, except Mustang. They have pickup trucks and SUVs/CUVs, and nothing else. That does not appeal to just about any taste and need. Focus, especially the ST was a great, and affordable sporty, but utilitarian car. Gone. Fusion was a competitive, and attractive sedan. Gone. Fiesta ST was a great driving car that I almost traded my Mini Cooper on. Gone. Ford will make money selling their trucks, for now, but for how long?
May 22nd, 2023 at 10:06 pm
Using the Hummer SUV as the building blocks for this IQ, are a safe bet, it’s the interior appointments and exterior styling that will make this a home run! Yet, with the ICE Escalade V selling for $150K and the Celestiq bench pressing $300K+, I’m afraid that this IQ and IQL maybe looking at a base price between $175-200K! I mean if Lucid can ask $200K for their Air Dream Edition, why can’t Cadillac do the same?
May 22nd, 2023 at 10:07 pm
So, let me get this right, the Z4 concept Touring Coupe (which might not Ever make production ) gets the pretty BMW face, while iX and the 4 and 7 Series has to live with ‘concept car’ like face for the life of their production run?! Makes perfect since! SMH!
May 23rd, 2023 at 7:23 am
23 You beat me to it. I was thinking the same thing. I get that its difficult to make money on sedans anymore but Toyota, Nissan, Hyundai and Kia seem to be able to do it. Ford offers nothing to compete in that arena. Ford has S,M L SUV and trucks with the Mustang and Mach-E.
May 23rd, 2023 at 7:43 am
17, I was waiting for Sean to tell us, but ended up looking it up. The link shows 7 ways EV tires differ, but one reason is “Tires for electric vehicles carry a heavier load and have to withstand high instant torque, leading to higher tire wear, so we need tires with stronger constructions and more robust rubber compounds. Greater mass and increased inertia means longer braking distance, so we place a special emphasis on optimal grip.”
May 23rd, 2023 at 8:28 am
Looking at the Tire Rack site, and searching tires for an M-B EQS, most of the tires listed were not EV specific, and most that were had “noise reduction technology.”
Here is what Tire Rack had to say, in general, about tires for EVs.
https://www.tirerack.com/upgrade-garage/what-do-i-need-to-know-about-tires-for-my-electric-vehicle?gclid=Cj0KCQjwyLGjBhDKARIsAFRNgW_lOZY2xer_eUG4MyE7sLdQ4eK5_2RhStYM_7jgSsGYc3K8X8rWgwMaAtEEEALw_wcB&ef_id=Cj0KCQjwyLGjBhDKARIsAFRNgW_lOZY2xer_eUG4MyE7sLdQ4eK5_2RhStYM_7jgSsGYc3K8X8rWgwMaAtEEEALw_wcB:G:s&s_kwcid=AL!3756!3!451476532508!!!g!!&gclsrc=aw.ds&&affiliate=HM5
May 23rd, 2023 at 8:29 am
Not to poo poo on EVs but just read a story from the Washinton Post about plastic recycling. Which most everyone agrees that recycling is the right thing to do right? But in a fairly new plant in the UK with modern filters they found that 13% of micro plastics are introduced into the water and air during the recycling process. So like so many other things they find out down the road that what we thought was a good idea ends up being actually worse for us in the end. So although we may find ways to recycle EV batteries will it actually be a good thing?
I dont think anyone can truly answer that as it seems battery chemistry is still in development and although we may create some problems initially they might also be resolved before EVs garner 50% of sales. The whole point being that often times when we think we are doing something to help the environment we often times create a bigger problem. Like Asian carp, Or plastic bags over paper.
May 23rd, 2023 at 8:59 am
23) I am with you on this. Other than the Mustang, Ford has nothing of much interest to me. Just trucks and SUVs. Even the interest in the mustang is waning. For the segment though, a few of Ford’s trucks/suvs seem to be interesting to consumers of those vehicles. Vehicles like the Bronco, F150, F250/350 and Maverick appear to be interesting to consumers and they have zero trouble selling them. The Escape/Edge/ecosport don’t seem to be stand-outs in the segments.
If I was the ecosport, I would be worried about what Farley stated. I don’t think that vehicle is going to make the cut.
May 23rd, 2023 at 9:43 am
Re: EV tires, both Kit’s link and my link agreed on most points, such as low rolling resistance yet better grip, performance, noise reduction, and more expensive. One difference is my article said EV tires are designed to last longer, though the Tirerack article said that it’s relative, since the instant torque and higher weight of an EV wears them quicker even though they are designed to last longer.
Overall, it sounds like they are just better, but more expensive tires that on an ICE vehicle would last longer. If that is the case, wouldn’t it be better for ICE vehicles to use these EV tires as replacements if you plan on keeping the vehicle a long time and can afford the “better tires”?
May 23rd, 2023 at 10:25 am
31 EV tire life would depend a lot on how often you use that “instant torque.” The tread life ratings of many of the EV tires I saw on the Tire Rack site were around 500, similar to a lot of regular “touring” tires.
May 25th, 2023 at 2:10 pm
12, 16 I’ve seen plenty of Solstices here in the Metro Detroit area (no surprises there – we probably account for three fourths of the ones sold). But I’ve also seen a decent number of its sister car, the Saturn Sky – which btw I prefer style-wise to the Solstice.