AD #3003 – MINI Cooper Updates; Kia Drops K900 & Cadenza; Elon Musk Looking at Big Payday
January 27th, 2021 at 12:08pm
Listen to “AD #3003 – MINI Cooper Updates; Kia Drops K900 and Cadenza; Elon Musk Looking at Big Payday” on Spreaker.
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Runtime: 11:16
0:08 EV Startup Stock Prices Jump After Biden Announcement
1:10 VW Partners to Build Yacht Based on MEB Platform
2:05 Elon Musk Looking at Big Payday
2:41 JLR Appoints Designer to Board of Management
4:24 Kia Drops K900 & Cadenza from U.S. Lineup
4:53 GMC Hummer EV Joins Extreme E Racing Series
5:31 MINI Updates Cooper Hardtop & Convertible
8:16 EU Creates Second Battery Cell Alliance
8:49 Sneak Peek into Lucid’s Assembly Plant
9:36 GM Production Not Hurt by Chip Shortage
10:16 Ominous Sign for Opel?
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EV STARTUP STOCK PRICES JUMP AFTER BIDEN ANNOUNCEMENT
On Monday, President Biden said he wanted to convert the entire federal fleet of vehicles to electrics. On Tuesday, the stock prices of EV startups based in the U.S. went through the roof. Workhorse shot up 30%–an incredible one day gain, Nikola was up 23%, Lordstown was up 14% and Fisker moved up almost 5%. The federal government runs a fleet of about 254,000 vehicles, not including the post office or military. It buys about 30,000 new vehicles a year, and sells that many used ones. Here’s our Autoline Insight. The Biden Administration is likely to buy electric vehicles made with union labor. And of all these startups, Lordstown is the only one committed to using union workers. General Motors and Ford sell more vehicles to the federal government than anyone else, and they’re likely to be the biggest winners in all of this.
| Autoline Stock Index – January 26, 2021 | ||||
|---|---|---|---|---|
| Previous Price | Current Price | $ Change | % Change | |
| Workhorse | $24.71 | $32.18 | $7.47 | 30.2% |
| Nikola | $20.74 | $25.64 | $4.90 | 23.6% |
| Lordstown | $23.21 | $26.45 | $3.24 | 14.0% |
| Hyliion | $17.23 | $19.43 | $2.20 | 12.8% |
| Fisker | $14.62 | $15.33 | $0.71 | 4.9% |
| Canoo | $16.80 | $16.21 | -$0.59 | -3.5% |
VW PARTNERS TO BUILD YACHT BASED ON MEB PLATFORM
Wow, we didn’t realize Volkswagen’s MEB electric platform is this flexible. The automaker is partnering with Silent Yachts, a company that builds solar-powered electric yachts, to create a yacht based on VW’s MEB platform. Cupra, which is Spanish automaker SEAT’s high-performance brand and also part of the VW Group, is responsible for the design. The yachts will be about 50 feet long, are equipped with six batteries and have 500 kW of power. And this isn’t just an experiment, the companies plan to bring the MEB-based yachts to market next year and build up to 50 annually. And while it may seem like a strange partnership, if VW can find other applications for its MEB platform, it gets more scale which lowers its costs.
ELON MUSK LOOKING AT BIG PAYDAY
Earlier this month, Elon Musk passed Jeff Bezos to become the richest person on Earth. And it looks like he’s about to add even more dough to his bank account. Tesla will report its quarterly earnings later today and analysts expect the EV maker to report an adjusted EBITDA of $2.3 billion. That’s enough to trigger the fifth of 12 payouts or tranches of options given to Musk that allows him to buy discounted Tesla shares. And that means Elon is in-line for a staggering $7 billion payout.
JLR APPOINTS DESIGNER TO BOARD OF MANAGEMENT
Well here’s something that’s extremely rare. Jaguar Land Rover is appointing its Chief Creative Officer and designer, Gerry McGovern to its Board of Management. Designers always complain about not holding top level positions at automakers and indeed it’s very rare. The only person we could think of is Peter Schreyer, who is president and Chief Design Officer of the Hyundai Group. Design is becoming more important and is now one of the few things that distinguish automakers from one another, so maybe we’ll start seeing more designers in top level positions.
KIA DROPS K900 & CADENZA FROM U.S. LINEUP
The sedan market continues to shrink. Kia confirmed it’s dropping the K900 and Cadenza from its American lineup. Just look at the sales and you’ll see why it’s making the move. Only 1,265 Cadenzas were sold last year. The K900 did even worse with sales barely cresting the 300 mark. Like the Ford Fusion, these models might be worth watching for big discounts at the dealer.
GMC HUMMER EV JOINS EXTREME E RACING SERIES
GMC wants to get the word out about the new Hummer EV, so it’s teaming up with Chip Ganassi Racing for the brand-new, all-electric off-road racing series Extreme E. The 550-horsepower vehicle features a grille, graphic and bodywork inspired by the Hummer EV and is going to be driven by Kyle LeDuc and Sara Price. While it will have the Hummer look, all the vehicles for the Extreme E series are the same underneath. They’re made by Spark Racing, the same company that makes cars for Formula E and the batteries are made by Williams Advanced Engineering.
MINI UPDATES COOPER HARDTOP & CONVERTIBLE
MINI is refreshing the Cooper Hardtop and Convertible. But this is all about styling as there’s no changes to the powertrain or chassis. The biggest difference is the front fascia. You’ll notice the grille is larger with a body-color panel now running through it and the fog lights have been deleted. So, MINI added a secondary light, controlled by its own switch, mounted inside the headlamp assembly that functions like a fog light. Moving to the back of the car, the rear fascia has been reworked as well and all models now come standard with the automaker’s Union Jack taillamps. We’re also seeing the Hardtop and Convertible pick up on a couple of recent trends. The first is offering the roof in a contrasting color and the other is using something other than chrome as an accent. In MINI’s case, the car will have the option to black-out the accents, which its done before, but it’s much more extensive. The grille surround, headlamp and taillamp bezels, badges and logos, door handles, fuel filler door and even the exhaust can come in black. The all-electric version of the car, the Cooper SE, will get the same design changes and the yellow accents have been toned down to bring the EV more in-line with the rest of the lineup. Although, if yellow is your thing, there’s a new yellow paint color, called Zesty Yellow. But overall, MINI says the new styling has a more performance look and is meant to be more aggressive, which especially comes through on the John Cooper Works model. There’s a few changes on the interior as well. An 8.8-inch touchscreen with a new display design and digital cluster are now standard and the shape of the steering, which can also be heated, and the shape of the air vents are new. With the extra content, pricing for ICE versions goes up by $500. A 2-door Hardtop starts at over $23,500, including destination charges, while a top-of-the-line 4-door Convertible starts at about $46,500. The all-electric Cooper SE is still the same price, $30,750. Production kicks off on March 1st, so deliveries in the U.S. should start sometime around the end of April.
We’ve got some good manufacturing information.
EU CREATES SECOND BATTERY CELL ALLIANCE
China has essentially cornered the market on the supply chain for manufacturing batteries for EVs. And that isn’t sitting well with the European Union. So, the European Commission is giving the go-ahead for a second battery cell alliance, which will have 42 members, including Tesla. By beefing up the supply chain the EU expects to create up to 10,000 new jobs. And we wouldn’t be surprised to see President Biden come up with a similar initiative.
SNEAK PEEK INTO LUCID’S ASSEMBLY PLANT
We got a bit of a peek inside Lucid’s assembly plant out in the desert south of Phoenix, Arizona. Lucid sent us a video clip showing off its state of the art paint shop. As you’d expect, it’s highly automated with plenty of robots and uses common practices such as rocking the entire body coming out of elpo dip to eliminate any bubbles and excess primer. Lucid has ambitious goals to grow. While the plant is currently 1 million square feet, it plans to increase that to 5 million. We’ve got to believe that includes a supplier park, because shipping costs for inbound components are going to be costly. There’s a reason why most assembly plants are east of the Mississippi. That’s where the suppliers are.
GM PRODUCTION NOT HURT BY CHIP SHORTAGE
Speaking of assembly plants, Autoforecast Solutions reports that 5 of GM’s U.S. assembly plants are running on overtime. Most other plants in the U.S. have slowed production due to a shortage of computer chips. Obviously, GM has got a better handle on this chip shortage than anyone else. And if you include Navistar’s Springfield assembly plant, then there are 6 plants making GM vehicles that are running on overtime. Did you know that Navistar assembles the Chevrolet Express and GMC Savana full size vans at its plant in Springfield, Ohio? It also makes medium-duty Silverado’s.
OMINOUS SIGN FOR OPEL?
While looking for news stories, we end up frequenting the same sites every day. And we’re finding it interesting that Opel’s brand logo is no longer at the top of the media pages for Peugeot, Citroen or Vauxhall, even though it was there yesterday. It’s possible we’re reading way too much into this and it’s just something the web designers need to address. But with the merger of PSA and FCA into Stellantis, some brands might not be sticking around, and we’re wondering if they’re trying to tell us something with this Opel omission? It’s something we’ll keep an eye on, but let us know what you think.
And that’s a wrap for today. Thanks for watching.
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Comments (28)
January 27th, 2021 at 12:44 pm
I’m surprised GM still makes the Savana. That chassis has been around the block a few times.
January 27th, 2021 at 12:51 pm
I still see what look like fairly new airport and rental car agency shuttle buses made from Savana/Express chassis.
Interestingly, considering the sales numbers, I know two people with Kia Cadenzas. Both were bought used, 2-3 years old at very good prices. They are actually pretty nice cars, with V6 engines, direct competitors with Toyota Avalon.
January 27th, 2021 at 1:07 pm
It’s probably just a stereotype, but aren’t most of the government vehicle purchases black Chevy Suburbans? Is a BEV Suburban planned or should we expect Chevy to loose a lot of business there. I would imagine Ford could easily make BEV Ford Expeditions to fill the gap.
January 27th, 2021 at 1:10 pm
Why can VW partner with a yacht builder that incorporates solar panels it’s yachts, but why can’t VW incorporate solar panels on it’s vehicles?
Which brands will be under the Stellantis umbrella?
January 27th, 2021 at 1:13 pm
3 The government vehicles I see most often are at Kennedy Space Center and Cape Canaveral Air Force Base. There are sedans, pickups, vans, and some SUVs, most of them “Detroit 3″ brands. The predominant color seems to be white. When the sedans are replaced, they won’t have much to choose from, if they want to stay with “Detroit” brands. Maybe there will be Tesla Model 3s, with the EV push.
January 27th, 2021 at 1:18 pm
Sean, just out of curiosity, with Tesla stock so high, if Tesla were to buy Lucid with new shares in an all share deal, what percent dilution would Tesla see? I’m just wondering if this could be a relatively cheap and easy way for Tesla to eliminate a competitor, while gaining a new model (the Model L) and a new factory. Just asking.
January 27th, 2021 at 1:23 pm
4 Solar panels on vehicles are mostly for show. They produce about 20 watts per square foot in bright sunlight. That doesn’t go very far at powering a car, though would help a little with charging the batteries.
It will be interesting to see what brands survive the Stellantis thing. For now, it’s Dodge, Chrysler, Jeep, Ram, Peugeot, Citroen, DS, Vauxhall, Opel(maybe), Fiat, Alfa Romeo, Maserati, Lancia, and maybe a European truck brand or two.
January 27th, 2021 at 1:43 pm
6 Since Lucid is not a public company (yet), it would be difficult for Tesla to take them over unless Lucid approved it. And since the founder is a former head of engineering at Tesla, I think he has something to prove. I don’t see that happening, but its interesting to think about.
January 27th, 2021 at 1:46 pm
Can’t see them eliminating Opel. Its their 2nd or 3rd biggest seller. And since Vauxhall models are just rebadged versions of Opels, it appears that this is just a mistake on the part of their web staff.
I would have to say that Lancia is at the top of the “Stellantis brands that could disappear” list. I think they only sell one model now, and only in a couple of countries. Its old, and I have not heard of any new models or updates slated for this brand.
January 27th, 2021 at 1:49 pm
On the topic of the high prices of EVs, I think its very interesting that the price of the EV version of the Mini Cooper falls below the midpoint of all Mini Cooper models. Its nice to see that the EV version is not the most expensive version of the car. More of this and people may start to realize that EVs are getting more affordable. Or, that ICE models have had an awful lot of price increases!
January 27th, 2021 at 2:10 pm
Under the category of >No big surprise, Kia drops the K900. From day one you had to ask yourself who in their right mind would shell out $60K+ for a ‘Kia’ sedan when you can get into a BMW / Mercedes / Lincoln or the likes for that kind of money?
January 27th, 2021 at 2:43 pm
I’d rather have a Genesis G90 than a Kia K900 any day.
January 27th, 2021 at 2:49 pm
10 The Mini EV has a small battery, and range of only 108 EPA miles, thus its low price. It would be a fun city car for those who can charge it at home, but limited in usefulness overall.
9 As new Opels and Vauxhalls appear, most will be, basically, badge engineered Peugeots. Still, is seems that more brands result in more sales. That’s why GM keeps GMC. In many, or most years, Silverado + Sierra sales exceed F-Series sales. If GM thought Chevy would get all the GMC sales if they dropped the brand, they would do that in a heartbeat, both to avoid tooling a second set of grilles, and to have bragging rights as the best selling vehicle in America.
January 27th, 2021 at 2:54 pm
3) I have been watching GSA auctions for 15 years. Mostly it is white/silver pick up trucks and SUVs these days. Not as many cars as there used to be many years ago. A few here and there but they are rare and seem to be left overs from years gone by.
If the rules will be USA made BEVs made by union labor the choice is limited. Basically the current choice is the Workhorse truck, Chevrolet bolt, and Ford Mach-E. If the time frame for replacement spans several years then it might expand to a BEV F150 or Silverado in the future. At least from the future plans that have been publicly stated by the OEMs.
I think it would be dumb for any Democrat to thumb their nose at the UAW and pick any TESLA model. TESLA is a well known anti-union company in UAW circles. Especially after the last round of votes at the TESLA plant which were cast under dubious circumstances, at least from the view of the UAW.
January 27th, 2021 at 2:57 pm
11 The K900 is much better equipped than an E-Class or 5 series at the same price, but still, $60K for a Kia sedan? That’s what everyone thought.
January 27th, 2021 at 3:02 pm
14 What union represents the Mach-E plant in Mexico? Is there a branch of the UAW?
January 27th, 2021 at 3:10 pm
Doesn’t E-Racing result in short races, or swapping out a second vehicle when the battery runs out?
Doesn’t that reinforce the problem of BEV vehicles’ short range in general?
January 27th, 2021 at 3:13 pm
16) You’re right. So that leaves the Bolt and the Workhorse. Pretty slim pickings for US and union made BEVs.
I suspect that there is some wordsmithing here and it is not “electric” but “electrified”. Electrified would open the market of potential vehicles significantly such as an F150/Ram Hybrid which are “electrified”.
January 27th, 2021 at 3:16 pm
17 Formula E increased battery size and no longer does car swapping. Still, the races aren’t very long, ~50-60 miles.
January 27th, 2021 at 3:19 pm
18 “Electrified” could also include the Pacifica plug-in hybrid, and some Ford hybrid crossovers.
January 27th, 2021 at 3:43 pm
20) Sounds like we need to invest in Ford.
January 27th, 2021 at 3:44 pm
#20 The Pacifica is assembled in Windsor, Ontario so not sure it will qualify under “Buy American”. Also, the employees are unionized with the union Unifor in Canada not the UAW.
January 27th, 2021 at 4:15 pm
22 I don’t know what will happen now, but in the past, NASA seemed to care mainly about “American” brands. There are Canadian Caravans, Mexican Fusions, and probably other non-US GM, Ford, and Chrysler/FCA products at the space center. I think there may also be Canadian Chargers.
January 27th, 2021 at 4:40 pm
23 I think under the old NAFTA, Canadian and Mexican built vehicles were “acceptable” for U.S. government purchases. Not sure what changes the USMCA may have made to this. The Biden administration may make further changes as well. Also, most vehicles assembled in North America contain parts sourced worldwide so it may come down to content %ages???
January 27th, 2021 at 4:46 pm
24 Yeah, all true. Also, there are Toyotas and Hondas that are a lot more “American” than many Fords and Chevies.
January 27th, 2021 at 4:54 pm
Hey Mini, you can’t call it a fog lamp when it is mounted so high up on the front of the car.
Stellantis, ask you doctor if it is right for you.
January 27th, 2021 at 4:59 pm
26 That was my thought when I first heard/saw Stellantis. Maybe it’s different in France.
January 28th, 2021 at 10:37 am
27) Stellantis is completely made up. However, according to this article, it is based in the latin word Stello which means: To brighten with stars. I doubt anyone in the world would recognize, without being told, that Stellantis was a reference to the latin word Stello.
https://adage.com/article/cmo-strategy/why-weird-sounding-stellantis-name-fiat-chrysler-peugeot-merger-actually-works/2307626