This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
MARY BARRA SHARES MORE GM EV DETAILS
GM CEO Mary Barra had a lot of interesting things to say at an Automotive Press Association event in Detroit yesterday. She called its decision to build ventilators during the height of the pandemic a “game changer” that created a culture shift in the company. The passion that was put into the project, plus the speed at which it was pulled off, gave GM the confidence to accelerate in other areas, especially EVs. As we’ve reported, it slashed its vehicle development time and moved up a number of launches. Barra says the first Hummer EVs will be in customer hands in “weeks not months.” She also talked about the Silverado E that will be shown off at CES, as well as a $30,000 Equinox-like electric vehicle and an eBlazer. And the CEO says she’s in favor of incentives for EVs because she believes they make electrics accessible to more people and will help speed up adoption. Lastly, she touched on the chip shortage, reiterating what GM President Mark Reuss said about reducing the number of chips in its vehicles and building a family of chips with its suppliers that fit a wider range of its vehicles. But Barra also noted the issue has caused GM to look at the entire supply chain for its future vehicles to make sure it doesn’t run into similar problems.
GM PARTNERS WITH TWO RARE EARTH COMPANIES
And rare earth magnets just might be another one. GM announced partnerships with two companies. First is with MP Materials to develop a U.S. supply chain for rare earth magnets. Mined material from California will be sent to a new facility in Texas where it will be converted into metal, alloy and magnets. Production is scheduled to ramp up slowly starting in 2023 and the magnets will be used in electric motors for models that ride on the Ultium platform. GM’s other partnership, with German company VAC, will do the same thing; build magnets for electric motors in the U.S. that go into Ultium platform vehicles. The only difference is we don’t know where this facility will be located yet and production is expected to start in 2024.
NEW FORD SERVICE HELPS FLEET OPERATORS MAXIMIZE PRODUCTIVITY
Ford is helping fleet operators and small business owners to maximize productivity. It just launched a new service called VIIZR, which allows tradespeople to schedule appointments, send invoices and manage customer requests from anywhere. The cloud-based platform costs $39 per month and is part of Ford Pro, the automaker’s commercial vehicle and service business. Ford says businesses with less than 20 employees, VIIZR can reduce back office work by more than 40% or about 25 hours a week. The market for this type of service is estimated at $3 billion annually and is expected to double in the next six years, so that’s why Ford is jumping into it.
FORD NO LONGER TAKING F-150 LIGHTNING RESERVATIONS
And speaking of Ford, if you were interested in getting a F-150 Lightning, you’re out of luck. In an interview on CNBC, Ford CEO Jim Farley said the company has stopped taking reservations for the electric truck and capped the number of orders at 200,000. That means the waiting list is about three years long. Ford originally set the production capacity at 70,000 to 80,000 a year but Farley says the company is aiming to double that over the next two years. The first F-150 Lightning’s are expected to arrive in the spring of next year.
GM PLANS TO START BUILDING THE ELECTRIC SILVERADO IN 2023
But you’re going to have to wait a bit longer for the electric Chevy Silverado. As part of a virtual chat with Deutsche Bank yesterday, GM executive vice president Doug Parks said it will start building the truck in early 2023.
CRUISE AIMS TO LAUNCH ROBOTAXI SERVICE NEXT YEAR
He also revealed that GM’s autonomous unit, Cruise, is aiming for commercial deployment of its self-driving fleet sometime next year. The robotaxi service will first launch in San Francisco. Last year, Cruise received permission to operate its fleet without a backup driver on board and this year applied to start charging customers for rides. However, last week San Francisco’s public transit operator said it wants to delay Cruise from receiving the permit it needs to charge for rides over safety concerns. Cruise disputed those concerns and the decision will ultimately be up to the California Public Utilities Commission whether or not Cruise gets the permit.
DAIMLER TRUCKS MAKES FRANKFURT STOCK EXCHANGE DEBUT
Daimler Trucks made its debut on the Frankfurt stock exchange earlier today and its shares were trading up from its debut price of 28 euros. Daimler spun off its truck unit from Mercedes-Benz passenger cars and vans, in order to unlock more value in each brand. Daimler still owns a 35% stake in its truck business. Daimler Trucks is now the largest commercial vehicle maker in the world by revenue but its profit margin is behind competitors Scania and Volvo Trucks.
TESLA TO LAUNCH TWO CHEAPER MODEL 3 VERSIONS IN CHINA
Looks like Tesla is getting ready to come out with two cheaper versions of the Model 3 in China. Gasgoo reports that Tesla filed for patents on a rear drive Model 3 with a 180-kilowatt motor, and another with a 194-kilowatt motor. The current Model 3 RWD uses a 202-kilowatt motor. Each model will also use cheaper LFP batteries, or lithium iron phosphate. Last month, Tesla raised the price of the Model 3 in China by more than $3,000. The base price is now $40,140 including subsidies. So the new models, with less range and power, are likely a move to offset the price increases.
PEUGEOT & WHIRLPOOL PARTNER TO MAKE UPSCALE FOOD TRUCK
Peugeot and appliance maker Whirlpool have taken the world of food trucks a little more upscale. They created this demonstration vehicle out of a Peugeot Expert van, which also gets its own matching trailer. The sides of the van open and two large countertops fold out. It features a stove top, two steam ovens, sink, refrigerator, generator and a big screen TV for good measure. Whirlpool says it will travel throughout France with the vehicle so customers can experience its products.
But that brings us to the end of today’s show. Thanks for joining us and I hope you have a great weekend.
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Comments (26)
December 10th, 2021 at 11:56 am
Love this show… been a fan when I used to watch it all the time on Speed Vision.
Does Autoline Detroit have a Roku Channel? Would love to stream this on my Roku…
December 10th, 2021 at 12:17 pm
.Tesla mod Y was the top selling premium/ luxury BEV SUV in China in Nov.easily double the sales of the next competitor VW ID 4,and the lower priced mod 3 will be upping the stakes again.
December 10th, 2021 at 12:29 pm
Amazing! Ford has huge interest in their Lighting truck and rather than focus on increasing production capacity to meet this demand. They decide to just stop taking orders. Maybe these legacy manufacturers wont survive the switch to electric.
December 10th, 2021 at 12:41 pm
3. Only 50% to 70% of the F150 reservations will turn into real sales. It’s better to sell one less vehicle than you can sell, then having the assembly plant running at less than capacity. Just look at the current situation will the chip shortage. They are selling millions of less vehicles and making just as much money as when there was no chip shortage.
December 10th, 2021 at 12:48 pm
Why does Elon Musk hate Americans, only selling the less expensive Models 3 in China?
December 10th, 2021 at 1:00 pm
4 I think everyone knows that sales will be some fraction of those reservations. What that % is has yet to be determined. But knowing this why not keep taking reservations and those that thought they might have to wait three years and are able to buy in two good for them.
Two years into production they’ll have a better idea how many reservations result in actual sales and be able to determine where they need to cut reservations off at or start notifying people that they cant fulfill their order.
I bet that’s what Elon will do and not let the excitement die before you even start.
December 10th, 2021 at 1:12 pm
6. In 2023 there will be 8 or 9 EV pickups for sale. Do you really think everyone on the F150 reservation list will still want one?
John has always said that assembly plants need to be running at 80% or higher in order to make money.
December 10th, 2021 at 1:23 pm
Lamborghini, I suspect Ford has lots of experience (Bronco, GT) with balancing reservation lists and production… knowing when long-term waits result in dissatisfaction.
December 10th, 2021 at 1:31 pm
There are only so many battery cells a firm has access to at any one time.
As a stickler for detail, I’d like to know which version of the gm corporate moniker is correct – the old capitalized one, or the new cutesy diminutive. Their homepage (and annual 10-K for the SEC) actually manage to mix both versions.
2 Rey – The Model Y’s closest competitor in China is the Li Xiang One, a vehicle we doubtlessly all know intimately, with 13K sales in November (versus the Y’s 24K).
It’s astonishing just how many Chinese companies
are building EVs / hybrids now. Check it out: it has a great interior, and medium-sized battery paired with a little three-cylinder range-extender to boot.
Sources:
twitter.com/DKurac/status/1468921701245149186
en.wikipedia.org/wiki/Li_Xiang_One
Nio’s European site looks pretty good, and they’ve begun selling in Norway.
Where’s the Lyriq again?
December 10th, 2021 at 1:53 pm
7-8 I agree with you guys and this has been the problem with EV launches from the start. Out of the gate they seem to have a lot of interest. Can they maintain that interest years into production? Tesla has done alright. On the flip side Ford cannot set up the assembly line to manufacture 200K trucks a year and find that sales drop into the toilet the second year.
I just think it would be better to have more reservations than you can fill, rather than fold up shop and say we’re good at 250K.
If I were a customer that placed a reservation and was told it might never be delivered and two years later was told I have the go! If I hadn’t already bought something Id fulfill the order.
Ford could get two years into production have the Silverado to contend with and who knows how many others, and find even more reserved truck take a pass. Yet people that are interested but was told they were sold out. I just think they are making a huge mistake. They have some idea of what they can and will sell but lots will change in the next year or two.
December 10th, 2021 at 2:12 pm
It will be interesting to see how sales go with all of these electric pickups hitting the market in the next few years. I know a number of pickup drivers. Most of them would be better off with a van, given what they use them for, but they just “like” trucks, or more likely, the image that goes with them. I don’t hear any of these people saying they want an electric truck, just as I’m not seeing electric Harleys on the road. A lot of Harley riders also drive pickup trucks, so does that signify anything?
December 10th, 2021 at 2:17 pm
As far as waiting, it took 13 months from when I ordered my Corvette to when I took delivery. That is a little longer than I expected when I placed the order, but I didn’t bother me. I like the car, and if I decide to sell it any time soon, I can make money on it. The people who actually want an electric pickup shouldn’t be bothered by the wait, and those who get them early can probably sell them at a profit, at least for a while.
December 10th, 2021 at 2:37 pm
11 You would have gotten your Vette way sooner had not been for CV shutdowns and chip shortages. People are gonna wait for the lightning cause of the sheer volume of reservations. Not the Vette has a shortage of interest too.
Yea I’m not sure there is as many people clamoring for a EV pick-up as there are manufacturers willing to make them. From a manufacturers stand-point it makes sense cause there is plenty of room to package batteries and they sell in the price range they need to make an EV attractive.
I honestly think they would be better off to go after the large SUV segment for those soccer moms that do lots of running around but probably not over 100 miles and still have a platform that can package batteries easily. They likely don’t do much towing or hauling (other than passengers) that would reduce range much. The moms would probably prefer to plug in rather than pump gas too.
December 10th, 2021 at 2:57 pm
13 Vans would be the ultimate for easy packaging of batteries. Knowing what my old Caravan looks like underneath, if you removed the exhaust system and gas tank, you could probably easily put 100 kWh of batteries in the open space. You’d need a lot stiffer springs, though.
Most of what I’m hearing now is that it’s still about a year wait for a Corvette, from order to delivery. It might be a little shorter from one of the mega-dealers.
December 10th, 2021 at 3:34 pm
Elon thinking of quitting his jobs.
https://www.reuters.com/markets/us/teslas-musk-says-he-is-thinking-of-quitting-his-jobs-2021-12-10/
December 10th, 2021 at 3:41 pm
16 Why not! With the amount of money he has. I wouldn’t want to deal with the stresses and issues he probably gets on a daily basis.
Id take the money and run and enjoy an early retirement.
December 10th, 2021 at 4:18 pm
15 If he does quit, Tesla stock might crash.
December 10th, 2021 at 4:21 pm
Elon can’t run for president, because he is from South Africa.
December 11th, 2021 at 4:22 am
What I meant to add: it’s notable that gm is investing in domestic rare earth magnet production.
If I recall correctly, minerals from California actually get shipped to China, which dominates a lot of the EV supply-chain (think graphite, anode/cathode materials, polysilicon for solar cells).
So kudos for thinking longer-term, be it gm or GM.
About Elon “retiring”: while I can see him taking some steps back from Tesla, SpaceX is in a challenging period with regards to the engineering of Starship.
He’s just not good at taking a real breather at all, it seems to me. Even though it would improve his chances of making it to Mars one day.
December 11th, 2021 at 7:02 am
IMHO, I believe the reason that Ford has capped reservations of their F-150 Lightning, is not just because there will be great competition. They are already working of the next generation F-150 and it’s Lightning replacement, which are due some time between 2025 or 2026, think Autoline reported a few weeks ago. So, if the current one goes on sell in the spring of 2022 and some will have to wait three years to get theirs, why continue to wait for the old when the new versions will be set to roll off the assembly line?! With the 200K reservations, perhaps they are expecting half to drop off and be first in line for the new version, as the 2024 model year approaches. One way or another, its a nice problem to have and im sure they’ll figure out a way to solve it.
December 11th, 2021 at 1:40 pm
19 GM more-or-less invented neodymium-iron-boron magnetic materials in the 1980s and did some manufacturing in Anderson, Indiana using the Magnequench trade name. It was sold to an investment company, and is now in Chinese hands.
December 11th, 2021 at 11:10 pm
19 Yeah, I’ll believe it when I see it with Elon “retiring.”
December 13th, 2021 at 7:10 am
Sigh. Thank you, very interesting – I went digging a bit. These nuggets are great, I learned something. The Magnequench moniker did ring a bell.
December 13th, 2021 at 8:08 am
20 That could be the case but if I were the one making those decisions at Ford I would keep the reservations open and just let the public know the next generation will be released in 25-26 and if you don’t get your lightning you’ll get moved to the front of the list for the next generation model. I mean do these reservations even require a deposit? If not, then they mean very little and if they do require a deposit worse case sits on that money for three years. $100 deposit at 250,000 reservations is 25 million. I’ll take the interest off that for three years.
December 13th, 2021 at 9:57 am
23 A refundable $100 deposit is not much of a commitment, especially given that interest rates are near zero. Even the $1000 deposit I made when ordering my Corvette was not much of a commitment. The dealer would have gladly returned my deposit, and sold the car for more than the MSRP I paid for it.
December 13th, 2021 at 10:04 am
24 Even better 250 Million in deposits is a nice chunk of change.