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Runtime: 8:24
0:59 Merrill Lynch Slashes EV Forecast
1:54 CR Says EV Tax Credit Shouldn’t Go to Luxury Buyers
2:25 Tesla Announces Model 3 Pricing in China
2:51 MINI EV Pulls Boeing Airplane
3:44 Volvo Tests Mixed Reality in Product Development
4:31 Cadillac Reveals CT4-V & CT5-V
5:42 Waymo To Test Self-Driving Semis
6:16 Penske Bullish on Future of Auto Industry
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MERRILL LYNCH SLASHES EV FORECAST
Electric cars are very much in the news today. Merrill Lynch revised its forecast for sales of electric cars in the U.S. market, because it now believes that total EV costs are not coming down as fast as it expected. So it’s slashing its sales forecast in half. It now says that EVs will reach 5% market share in 2025, down from its previous estimate of 10%. And they’ll reach 15% in 2030, down from 30%. It says the average transaction price for EVs in 2025 will be $42,000, which prices them out of reach for most consumers. But it believes EVs will reach cost parity with ICEs around 2030, and based on its market share forecast, that would translate into 2.5 million EVs being sold every year in the US market.
CR SAYS EV TAX CREDIT SHOULDN’T GO TO LUXURY BUYERS
Along those lines, Consumer Reports came out yesterday calling for the U.S. Congress to extend and expand tax credits for those who buy EVs. But it wants one critical change. It does not want EV tax credits going to people who buy luxury cars. It says there should be a price cap but does not say what that cap should be. We here at Autoline have said it should be capped at the average transaction price for light vehicles, which right now is about $36,000.
TESLA ANNOUNCES MODEL 3 PRICING IN CHINA
Tesla announced the price for the Model 3 that’s made in China. The base price is about $47,500 for the standard range plus version. That’s about $7,000 cheaper than the version it imports from the United States. Reuters reports that Chinese customers will have to put down a deposit of $2,800 and wait 6 to 10 months to get their cars.
MINI EV PULLS BOEING AIRPLANE
And MINI is having some fun showing off the capabilities of its upcoming first pure electric vehicle. It put together this video of a close-to-production prototype pulling a Boeing 777F airplane that weighs 150 tons. The video, which was created along with Lufthansa, is the first in a series of videos the company will be posting on social media in the lead up to its introduction. Called the MINI Cooper SE, it’s based on the MINI 3-door and will go into production at the company’s plant in Oxford, England in November.
VOLVO TESTS MIXED REALITY IN PRODUCT DEVELOPMENT
To help improve product development, Volvo has partnered with Varjo, a Finnish company that makes augmented reality goggles, to create a mixed reality approach to evaluating designs, prototypes and safety features. The technology makes it possible to wear the headsets while driving a car, so virtual elements, like a pedestrian or moose, can be overlaid on the road. Not only does it look real to the driver, the car’s sensors also react to the virtual image. This allows designers and engineers to drive cars and evaluate features in a simulation, years before the car exists. Volvo says this technology could help cut costs, since problems can be identified and addressed earlier in the development process.
CADILLAC REVEALS CT4-V & CT5-V
At an event in Detroit yesterday, Cadillac unveiled the new V-Series versions of the CT4 and CT5. Under the hood of the CT4-V is a turbocharged 2.7L engine that makes 320-horsepower and nearly 370 lb-ft of torque. The CT5-V has a twin-turbo 3.0L V6 that makes 355-horsepower and 400 lb-ft of torque. If those numbers sound a little underwhelming for a V car, that’s because these are the entries into V-Series. There will be more track-focused cars coming soon. Both cars feature 10-speed transmissions and rear-wheel or all-wheel drive. They will also be the first Cadillacs to have the 4th-generation of magnetic ride suspension. Brembo front brakes come standard and will be available in 4 colors. And we finally have word that Super Cruise, Cadillac’s hands-free driving feature for the highway, will be available on all V-Series models starting in 2020. Pricing will carry a $6,000 to $7,000 premium over sport models.
WAYMO TO TEST SELF-DRIVING SEMIS
Waymo has been testing its fleet of self-driving passenger vehicles in the Phoenix area for several years and now it’s getting ready to test autonomous semi-trucks. The trucks will start testing on highways around Phoenix this week and will expand to more routes in the future. Two riders will be in each vehicle. The trucks use the same technology as the passenger vehicles but are configured differently.
PENSKE BULLISH ON FUTURE OF AUTO INDUSTRY
Roger Penske is a living legend in the automotive industry and he’s this year’s recipient of the SAE Foundation’s Industry Leadership Award. Roger is a fierce proponent of the auto industry and he believes there will be a lot of job opportunities for young people in the future.
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John McElroy is an influential thought leader in the automotive industry. He is a journalist, lecturer, commentator and entrepreneur. He created “Autoline Daily,” the first industry webcast of industry news and analysis.