AD #2957 – Nikola Served Grand Jury Subpoenas; Details of BMW’s All-Electric iX; Tesla Confirms Larger Battery Pack
November 11th, 2020 at 11:45am
Listen to “AD #2957 – Nikola Served Grand Jury Subpoenas; Details of BMW's All-Electric iX; Tesla Confirms Larger Battery Pack” on Spreaker.
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Runtime: 10:58
0:07 Nikola Served Grand Jury Subpoenas
1:10 Honda Putting Level 3 Vehicle on the Road
2:03 Details of BMW’s All-Electric iX
3:53 Why Fleets Won’t Want Electric Pickups
6:02 Ford Boosts Electric F-150 Production
6:29 Ford Invests Big in Its Electric Future
7:13 Tesla Confirms Larger Model 3 Battery Pack
8:20 Shoes Made From Recycled Airbag Material
8:58 Walmart Teams with Cruise for AV Deliveries
9:37 Meyers Manx Company Sold to Investment Firm
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OK, let’s get into the latest developments in the automotive industry.
NIKOLA SERVED GRAND JURY SUBPOENAS
Nikola is in a heap of legal trouble. Both the Department of Justice and the Securities and Exchange Commission launched investigations into the startup in September, after Hindenburg Research accused Nikola of misleading investors about its fuel cell technology. Now, according to a filing with the SEC, Nikola and its founder Trevor Milton, we served grand jury subpoenas. And this latest revelation makes us wonder if Nikola’s partnership with General Motors will happen. The two companies haven’t signed a deal yet. And as these negotiations go on, the less it looks like it will happen.
HONDA PUTTING LEVEL 3 VEHICLE ON THE ROAD
Honda is taking a route to autonomy that few other automakers want to follow. The Japanese government just gave Honda permission to put a Level 3 car on the road in Japan. Level 3 refers to a car that can drive autonomously on different types of roads, but hands everything back to the driver when it encounters something it can’t handle. Many AV experts worry that drivers may not be ready to take immediate control in an emergency. But Honda’s description of what it called Traffic Jam Pilot actually sounds more like a Level 2 system such as Cadillac’s Super Cruise. It has a camera which monitors the driver, meaning the driver has to be paying attention. Traffic Jam Pilot will be available on Honda Legends in the Japanese market in just a couple of months.
DETAILS OF BMW’S ALL-ELECTRIC iX
BMW announced a lot of details about its new electric flagship, the iX. It’s built on a dedicated EV platform that will be used for other models. It’s powered by two electric motors with a combined 500 horsepower that will deliver a 0-60 time of 5 seconds. And it will have a 300 mile driving range based on the EPA test procedure. If you use a 200 kilowatt DC charger, it can fill the battery to 80% capacity in 40 minutes, and in 10 minutes you can get an extra 75 miles of range. Interestingly the motors do not use any rare earth materials. With China dominating the market for rare earths, many non-Chinese automakers are designing motors that do not need those materials. The BMW iX will go on sale in early 2022. There’s a ton of information about this car that you can find in the press release, which we’ll link to.
WHY FLEETS WON’T WANT ELECTRIC PICKUPS
Electric pickups are in the headlines. And there will be at least nine models in the U.S. market by 2023. But a study from automotive consultant Warren Browne, says those trucks will only generate sales of 40,000 units in 2023. That’s because they’ll have an average transaction price $20,000 more than a comparable piston powered truck. Plus, they’ll be configured in a way that only appeals to a small portion of the market. Warren Browne was our guest on Autoline This Week, and he says fleet buyers will not be interested..
“Fleet buyers aren’t going to buy $70,000 pickup trucks. There’s no purchasing manager in the world that I’m aware of, in the business I’ve been in for 40 years that’s going to say ‘well you know, I know it’s $20,000 higher but let’s just go after them and do this.’ Now, that doesn’t mean they won’t get some fleet sales but I don’t see this as a fleet customer product. One, because of the price but in the long run the maintenance costs are going to be less and the operating cost in terms of fuel economy are going to be less, but that’s down the road. So I don’t see this and you know what a hundred units, a thousand units, it’s going to break these companies if that’s the volume. There’s no overriding United States infrastructure, in terms of incentives, a national distribution on charging stations, that says this is what we’re going to do. And maybe Biden will do it, maybe he won’t. But at the moment they’re fighting an uphill battle that is enormous, so they’ll be a niche player and they’ll be much more of a niche player in the fleet market.”
Warren did go on to say that electric trucks might have a chance in the fleet market, if companies do a buyback, meaning they’ll buy them back after at the end of a lease. For more of Warren’s insight, you can watch that full interview on our website or YouTube channel.
FORD BOOSTS ELECTRIC F-150 PRODUCTION DUE TO STRONG INTEREST
Of course, Tesla and Ford are reporting strong orders for their electric pickups. Some forecasters estimate that Tesla’s Cybertruck has over 700,000 orders so far. Ford says interest in its electric F-150 is so strong that it’s increasing production plans by 50% and adding 200 more jobs at the Rouge Plant where it invested $700 million to make the new truck.
FORD MAKES BIG INVESTMENT IN ELECTRIFICATION
Speaking of Ford EV production, the electric version of the Transit, called the E-Transit, which debuts tomorrow, will be built in its Kansas City Assembly Plant. Ford is investing $100 million and adding roughly 150 new jobs to make the all-electric van. The E-Transit arrives late next year, while the electric F-150 comes in the middle of 2022. But wait, there’s more. Ford is also investing about $150 million to make e-motors at its Van Dyke Transmission Plant and will make an EV that shares a platform with the Mustang Mach-E at the same plant in Mexico. We don’t have any more details on that, but if you do, let us know!.
TESLA CONFIRMS LARGER MODEL 3 BATTERY PACK
A month ago, Tesla launched the refreshed Model 3, which included, among other things, a boost in range. That suggested the car is being equipped with larger battery packs. And now Electrek reports that Tesla confirmed the Model 3 comes with a new 82-kWh battery pack. Previously, 75-kWh was the largest pack you could get. The new batteries, which are produced by Panasonic at the Nevada Gigafactory, are 5% more energy dense. They are still 2170 battery cells and not the 4680 cells Tesla unveiled at its Battery Day in September. A Model 3 Long Range Dual Motors model with all-wheel-drive, now gets an EPA estimated 353 miles of range on a single charge.
SHOES MADE FROM RECYCLED AIRBAG MATERIAL
Cars are one of the most recycled consumer products but there are always ways to recycle them even more. Here’s an interesting use of used airbag material. Reebok has teamed up with South Korean label Kanghyuk to introduce a shoe that’s made from strips of repurposed airbags. Just 50 pairs will be made, they cost 250 pounds or $330 and will only be sold at Dover Street Market London. The shoes have an interesting look and if you’re a fan of the style, Kanghyuk actually makes a whole line of clothing from old airbag material.
WALMART TEAMS WITH CRUISE FOR AV DELIVERIES
Retail giant Walmart seems serious about delivering goods to customers without human drivers. It’s already using drones as well as autonomous vehicles from Nuro and Ford. And now it’s teaming up with GM’s Cruise. Walmart is launching a pilot program in Phoenix, Arizona to deliver goods using Cruise vehicles. Although, it did not say how many will be used in the test. Not only will this be better for the environment because the vehicles are all electric and you don’t have someone wasting gas to go to the store, but it should also be cheaper because a driver is not required to be in the vehicle as well.
MEYERS MANX COMPANY SOLD TO INVESTMENT FIRM
Bruce Meyers, who designed the iconic Meyers Manx dune buggy in 1964, has sold the Meyers Manx company. If you didn’t know, it is still making buggy kits to this day. The company was purchased by an investment firm, called Trousdale Ventures. But no need to worry, it seems Meyers Manx is in good hands. Trousdale Ventures wants to carry on the legacy of the company and will do that with CEO Freeman Thomas, who’s a former designer from the VW Group as well as Daimler Chrysler and Ford.
We invite you to join us tomorrow for Autoline After Hours when our guest will be Brian Goldstine, the vice president of mobility at Bridgestone. How can a tire company play a role in mobility? You might be surprised at the opportunities it sees. Peter Bigelow from Automotive News will also be on the show so join John and Gary for some of the best insights into what’s going on in the automotive industry.
But that’s it for today, thanks for watching and please join us again tomorrow.
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Comments (17)
November 11th, 2020 at 12:28 pm
I don’t understand why vehicle designers continue to style their vehicles as if license plates don’t exist. The BMW iX looks ridiculous with that plate stuck over the dual kidney grille. Perhaps this could be another reason to return grilles to more reasonable sizes.
And, I have to say that the interior of the iX is pretty underwhelming. Why do designers think EV interiors need to be so plain and austere? I see very few luxury cues in those images. And the steering wheel shape is also comical. Its a design Chrysler tried in the 50s. I am sure customer response is the reason we have not seen this shape in more than 50 years.
November 11th, 2020 at 12:33 pm
It seems that Mr. Browne needs to update his information. The planned price for the Lordstown Endurance pickup is approximately $52,000, before any gov’t incentives. That puts it close enough to gas powered trucks to provide a savings over the useful life of the truck, estimated to be in the $20,000 range, depending on the future price of gasoline.
Also, I am not sure why he brought up public charging stations (or the lack thereof) in relation to fleet sales. Most vehicles will be charged at the company garage overnight, not at public charging stations. That is why fleets are a desirable target for the Endurance and EV F-150.
November 11th, 2020 at 12:34 pm
Not only will fleets not want electric trucks, your basic consumer isn’t going to be running to spend 20K more for a truck that requires 20 minute or more fill-ups still has range anxiety.
These are niche vehicles that fulfill the needs of the very few.
Airbag shoes look like they were already in an accident. I’ll pass.
I had no idea the Myer Manx was still being produced. That’s cool although the VW chassis’s have to be pretty scarce anymore.
November 11th, 2020 at 12:50 pm
3 – I wonder if the Manx has been updated so it can be mated to a Golf chassis? That would help it to remain a relevant product, since Beetle chassis are not only becoming less commonly available, but VW enthusiasts would rather restore the Beetle than tear it apart for its chassis.
November 11th, 2020 at 12:53 pm
That BMW iX is certainly not a handsome vehicle; it better be so stellar in performance that looks don’t matter (but we do know that it does; styling matters).
Those limited production shoes will fly off the shelves; not because they are recycled or better than anything else out there but more so do to the die-hard sports shoes collectors buying them up (for display).
Honda’s level 3 should really be reeled-in and called level 2. If the driver is supposed to be ready, willing and able to take over, the slightest delay can make a very big difference. What is suggested (as a level 3) is not going to make the grade, and even alludes to what some Tesla owners have done; turned on Auto-Pilot and failed to monitor their presence of their environment resulting in some bad outcomes.
November 11th, 2020 at 12:56 pm
Thanks Shaun for doing a show on today’s holiday, which actually had LOTS of interesting stories, which I did not happen to know already.
A. Criminal Trevor Milton and his latest scam, Nikola Motors. I have lost count how many times I warned the Tesla Hating regulars and the Bankrupt GM wishful thinkers here that this is a CRIMINAL ENTERPRISE. Anybody who Studied the LINK I gave you, the detailed homework the guys at Hindenburg did, and who has half a brain, would see it too.
B. Go listen to the segment about BEV Pickups and Warren Brown several and WISE points. I fully agree with him. Very few fleets will order very few of these, which should spell HUGE trouble, and possibly bankruptcy, of all these monkey-see monkey-do outfits who think they are required to design a BEV pickup. I am not even sure that PRIVATE Buyers will buy many.
C. Nikola, BEV Pickups, BEV BMWs: what do they have in common? THey are ALL in a HEAP of trouble.
The so-called ‘flagship’ BMW BEV shown today is a FUGLY POS. Not only is its twin Esdel fake grille ATROCIOUS, it is not even serious, it looks like a Lego version of a TOnka toy. THe sides and the back of this breadvan are also poor looking, and, worse, SO IS ITS PERFORMANCE. A FLagship BEV doing onl 5 sec 0-60, when the ALMIGHTY TESLAS do … 1.9? It will die the same death that the FAR better looking i8 and the nerdy looking i3 died. Even if, like Merc, it prices this POS way below the 7 series, as Merc prices the GLS far below the S class.
And since this has become long already, I stop here.
November 11th, 2020 at 1:07 pm
What’s that Warren Browne been smoking ? Went back to listen to the show saying 40K ev trucks for 2023 and there is 750K preorders on cybertruck there is a bit of a disconnect. TeslaFan boys will buy up at least 40K trucks in 2021 if Tesla can make them
With the semi the deposit is $20,000 each that’s some serious interest yeah the cybertruck is only $100 but we will know the answer in a year from now
November 11th, 2020 at 1:44 pm
I’m ok with the BMW BEV’s front and rear styling. The rear lift gate uses a clamshell approach similar the Audi Qs and Lincoln MKC/Corsair. The interior is underwhelming (and that’s the best I can say about). I’m hoping the computer graphic imagery the interior lacks is only using 1/1000 of the normal pixel count, making the surfaces look so plain and 2-dimensional. JMHO.
So Sean, tell us the truth. Is LD a computer-created neme with the sole purpose of stimulating heated debates? If so, it’s past time to reprogram the computer as it is stuck in an infinite loop. Also, I have noted the number of comments are much lower in the LD era.
November 11th, 2020 at 2:02 pm
That BMW certainly exists. That is about all the nice things I can say about it.
November 11th, 2020 at 2:23 pm
6. The last sentence is your best thought so far.
November 11th, 2020 at 2:29 pm
5 The autonomy thing is a joke. I think we are years from having a truly hands free self driving car and even further away from relieving manufacturers from the liability of such systems. Asking consumers to let their car drive itself but stay alert and ready to take over is like getting on a bus to Vegas and telling the passengers to pay attention to the road just in case the driver falls asleep. It will last for about the first hour and then they’ll be reading and napping and playing on their phone.
I honestly think that any system that is not capable of fully self driving and is in this in-between stage of autonomy where it works some of the time and requires driver assistance is just an accident waiting to happen. Lawyers be happy!!
November 11th, 2020 at 2:32 pm
I figure at least 40% of pickups are for recreational not business use. So that’s a big market right there for the BEV pickups; people making emotional decisions.
I also have to disagree that fleets won’t look at BEVs. They are all about total cost of ownership, not initial purchase price. With the actual price difference much less than $20,000, I think this will be a good market.
November 11th, 2020 at 4:11 pm
12 I would imagine it depends on the type of fleet purchase. Rental companies like Enterprise or Hertz could care less about fuel savings as that cost is passed onto the consumer. Plus most rental companies dump their rentals around 60K miles so overall maintenance costs wont be much different. EVs wear tires faster but ICE would need 6 oil changes.
Fleet sales to electric companies, Amazon, UPS or alike probably would be more interested in total cost of ownership over a much longer period of time. However I would think those types of fleet sales would be more interested in Vans rather than pick-ups.
November 11th, 2020 at 4:38 pm
If the Buick GNX is a car for Lord Vader… the BMW iX… …Bugs Bunny, your car has arrived.
November 12th, 2020 at 9:29 am
14 lol
November 12th, 2020 at 10:53 am
13) I agree. Van fleets as BEVs make a lot of sense assuming that they keep them for a very long period of time and can recoup the upfront costs.
November 12th, 2020 at 1:53 pm
VANS – In addition, many commercial vehicles usually follow predictable routes. Those with lower daily mileage will be fitted with smaller battery packs. Still, for fleets, total cost of ownership rules.