This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
JUNE SALES: FANTASTIC FOR FORD, DISASTER FOR HONDA
Automakers in the U.S. will count up their June sales on Thursday. And Wards Intelligence says it’s going to turn out to be a fantastic month for Ford but a disaster for Honda. It predicts Ford’s sales will shoot up 34%, while Honda’s will plummet 51%. Overall, Ward’s expects sales of 1.1 million vehicles, which is down 4% from May on a daily selling rate basis. The SAAR will come in at a weak 13.3 million vehicles. But there is one sign of hope. Inventory levels are starting to slowly go back up. In May automakers had a 25 days’ supply. Now it stands at 29 days.
TESLA SHANGHAI READIED TO MAKE 1 M CARS
Tesla is going to shut down its assembly plant in Shanghai for two weeks next month. But that’s because it’s getting ready to really boost production. The expansion will take the plant’s output from roughly 17,000 cars a week right now to 22,000 when it’s back to line speed. That would put the plant on track to make about 1,000,000 cars a year. We’ll have to watch and see if Tesla uses the increase in production to sell more EVs in the Chinese market, or continues to export half of those cars to other markets.
TOYOTA LOBBIES JAPAN TO PUSH HYBRIDS
Toyota built its future strategy on selling hybrids and the company has been very vocal about criticizing EV mandates. Now, Reuters reports that the President and Chairman of the company, Akio Toyoda, pressured the Japanese government to support hybrids just as much as BEVs in its environmental policy. The automaker argues that fossil fuels are the problem, not the internal combustion engine and that hybrids running on synthetic fuel are just as good for the environment as BEVs. Hybrids accounted for nearly 44% of new car sales in Japan last year while BEVs were less than 1%.
JAPAN PUSHES G7 TO WELCOME HYBRIDS
Looks like Toyota’s lobbying is paying off. Now the Japanese government is trying to get the G7 countries to remove a zero-emission vehicle target to combat climate change. Japan wants the other major countries to eliminate their goal of having half of all vehicles to be zero-emission by 2030. Instead it wants to replace that with a vague target of increasing the sale of light duty zero-emission vehicles, including hybrids. We’ll find out if Japan’s lobbying efforts paid off tomorrow. That’s when a final version of the proposal will be released.
VW ID. AERO IS LATEST EV EFFORT
Here’s a better look at the production-intent version of the ID. AERO sedan that VW teased in design sketches last week. This will be the top-of-the-line model in VW’s family of ID vehicles and it goes on sale in China in the second half of next year, followed by Europe and North America. Our guess about battery size was right at a usable space of up to 77 kWh. And VW says it will have a range of up to 620 kilometers or 385 miles, based on WLTP. This concept also features flush-mounted door handles and 22-inch wheels and while items like those sometimes don’t make it to production models, we bet they do in this case.
32 MILLION VW’S BUILT ON MQB
Speaking of VW, as it transitions to an all-electric lineup it’s reflecting on what is probably one of its last ICE-based platforms, MQB. Launched 10 years ago it’s supported everything from the Audi TT to the VW Atlas SUV. And with more than 32 million vehicles produced from it, MQB is VW’s most successful platform ever. Not only did it get big economies of scale, there’s a number of carry-over parts from one model to another. For example, the number of engine and gearbox combinations was cut in half and HVAC units went from 102 down to just 28. But Volkswagen is not completely done with MQB yet. It says it will continue to improve standards in terms of quality, value, functions and digital experience and will be used for new versions of its top sellers, like the Passat and Tiguan.
1,000 HP “SUCKER” CAR SMASHES GOODWOOD RECORD
EVs took over the Goodwood Festival of Speed this weekend. Not only were there plenty of electrics on display, some of the fastest cars at time trials had to plug in. Ford’s nearly 2,000 HP SuperVan was more than just a beauty queen, it set the 5th fastest time of any vehicle, screaming its way through the track. And the fastest vehicle was this wild bat-mobile-looking EV, called the McMurtry Speirling. It’s a 1,000 HP fan car that sucks itself to the track and actually broke the overall record set last year by VW’s all-electric ID.R race car. If you end up having a minute check out this whole video put out by Goodwood and watch the 10th fastest car, then skip to the Speirling. The difference in speed just watching the video is pretty amazing.
EVGO ADDED TO RUSSELL INDEXES
EVgo, the largest public fast charging network for electric vehicles, is being added to the Russell 3000 and Russell 2000 indexes. The indexes are used by investment managers and institutional investors for index funds and a benchmark for the stock market. We find it noteworthy because it’s a sign of how important EV charging is becoming.
CADILLAC CELESTIQ WILL COST $350,000+
The Wall Street Journal reports that Cadillac’s hand-made luxury car, the Celestiq, will cost over $300,000. We think it’s going to be more than that: over $350,000. And there will be a bespoke version that could well top $400,000. Why did Cadillac decide it needs to build a car like this? We’ve got a video that dives into why Cadillac desperately needs the Celestiq and you can find the link in today’s show notes, or in the description box below.
CLARIOS DEVELOPS LOW-VOLTAGE LITHIUM BATTERY
Most electric cars still use a lead acid battery for all their low voltage requirements. That’s because they’re far less expensive than a lithium battery. But they’re heavy, which hurts EV range. Now a company called Clarios developed what it calls an absorbent glass mat so that it can make low-cost lithium batteries for low voltage applications. And we’ll have Mark Wallace, the CEO of Clarios on Autoline After Hours this Thursday to explain why every electric car will probably start using it.
But that’s a wrap for today. Thanks for joining us.
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Comments (29)
June 27th, 2022 at 12:09 pm
Rooting for Toyota! Battery Hybrids make sense and until a very expensive and extensive charging network is in place they make a great transition vehicle. Providing EV power for short local commutes and still providing the range needed to the consumer so that they don’t need multiple vehicles to suffice all their needs.
June 27th, 2022 at 12:18 pm
Goodwood – The difference between the McMurty and the rest of the cars in that video is astounding. I think my favorite, though was the old Subie with the active areo.
Toyota – from the beginning they have been all about hybrids instead of full EVs, which has netted them ire from environmentalist groups (which has been reported on here in the past). Will be interesting to see if the G7 listen to the proposal. Hybrids make a lot of sense for those of us who put a lot of miles on their vehicles.
June 27th, 2022 at 12:24 pm
I guess to translate what Toyota is really saying is – ” since we have put all our money into hybrids and not EV’s we should really be using hybrids”
June 27th, 2022 at 12:28 pm
@Stu – I’m totally with you on that Goodwood Subie. The way it dives and leans into corners and still posts one of the fastest times is really impressive.
June 27th, 2022 at 12:35 pm
Also on domestic side, don’t forget Ford Escape hybrid and plug-in hybrid.
June 27th, 2022 at 12:54 pm
3 I think Toyota could easily offer a BEV but understand that the majority of customers will not want a BEV no matter what the government would like us to own.. If given ONLY the choice of BEV or HBEV I’m betting 70% of Americans would take the HBEV.
June 27th, 2022 at 3:08 pm
Sean, I agree with Toyota. Since hybrids use many fewer batteries, we could have many more of them with the same limited supply of batteries and we could probably get by with lower energy density batteries using other materials. I’d much rather see 50% of new cars be hybrids instead of 5% being BEVs.
June 27th, 2022 at 5:13 pm
Pretty much every BEV is back ordered by the CUSTOMERS. Having traded in a Toyota Prius Prime for a Tesla Model 3 in 2019, my gold went to the simpler, more efficient car.
BTW, we kept our older 2014 BMW i3-REx with 72 mi EV range over the 25 mi Prius Prime and it’s poor control laws that ran the ICE too often.
June 27th, 2022 at 5:14 pm
Toyota hybrids have been a great option for me, for 12 years. My latest one, an FWD Highlander, is getting ~40 mpg in mixed driving with short trips and speeds mostly under 65. A friend with a not-much-bigger bigger Enclace is getting about half that in similar driving.
June 27th, 2022 at 5:22 pm
I am taking the price figures to mean a fully optioned version ‘could’ theoretically reach $300K! If one were to tick all the boxes on a current 7 Series and S Class, they’d get pretty close to $200K easy, if not more. IHMO, the really issue is, how can GM/Cadillac even think of offering something for this kind of money, when they still can’t seem to build luxury vehicle at a more down to earth price, that are considered as good as and/or equal to their direct competitors, by market watchers and auto journalists! Don’t get me wrong, I personally feel that Cadillac is making some of the best vehicles that they have made in their history! And that, outside of some subjective styling, interior material choices and engine refinement in a few cases, overall, Cadillac’s are not far off from their direct European competitors! Yet, Percepually, as they are Perceived by the buying public, they are a long ways off from the ‘tip of the arrow’! That is what is having me lose my mind, regarding the Potential cost of this vehicle. When you get down to brass tax, every auto maker can build an expensive vehicle, but will it be respected and considered equal to its peers, perceptually? If an upstart like Lucid, can build a version of its flagship vehicle and sell it for almost $200K, sure Cadillac could build a vehicle and price it, fully optioned, for close to $300K! Yet, blue-collar workers, who support Cadillac, can’t buy it, but those who can, I don’t believe, will!
June 27th, 2022 at 5:23 pm
8 Prius Prime and i3 REx are much different cars. The Prime is a hybrid with a bigger battery, better for longer trips, but not much of an EV. The REx is an EV, with an on-board Honda generator. OK, an onboard BMW generator. The i3 would be a great commuter car for a lot of people, even without the REx.
June 27th, 2022 at 6:03 pm
Sean, I just watched John’s explanation of why he believes the Celestiq will cost beyond $300K. With his experience in the industry, I wouldn’t bet against him! I still find it hard to believe that GM/Cadillac would feel that confident, to just drop a car like this on the market and buyers just flock to it, just because it’s expensive. If it is just as they say it is and lives up to its calling, there is no way they can sell and service it in/at a regular Cadillac dealership! Having $300K+ flagship, next to a $40-50K CUV/Crossover, or even the $150K Escalade V, would be too down market for that kind of clientele. The Celestiq in the same dealership with a lesser vehicle, that is being sold with Incentives on the hood or someone is using the GM “A” Plan, would be insulting. I’m sure customers of the Celestiq, will either buy online or have the sales person come to their home or office for the purchase! All that being said, I have a hard time seeing people except this as a vehicle that will rival a Rolls Royce phantom, regardless of how good it is.
June 27th, 2022 at 6:37 pm
What is your definition of an environmentally friendly vehicle? No one seems to be thinking/talking about the alternatives such as Liquefied Natural Gas for a full story, please go to Robert.ca to read the Real facts about Environmental Stewardship.
BEV’S are not that environmentally friendly.Thank you.
June 27th, 2022 at 6:55 pm
FYI, the BMW i3 with REx (Range EXtender) easily covers cross country driving in motorcycle sized segments, 70 mph at 39 MPG.
About every 1 hr 15 minutes, pull into a truck stop to top off the gas tank, 1.9 – 2.3 gallons, a bathroom break, fresh beverage, and back on the road. The front trunk can hold a 2 gallon, spare gas can should a truck stop should be closed.
June 27th, 2022 at 6:56 pm
I have a 2018 Cadillac CT6 2.0E plug-in that retailed for about $77,000 before fed tax credit. I picked up in March 2020, at the onset of Covid, for about $38K which included the reduced fed tax credit of $1,850 making it a steal!
It is perfect for comuting 45-50 miles on battery, plug-in at work, drive home, plug-in again. All on battery. It does see 40 mpg in hybrid mode as it wafts down the highway. Since only 591 were sold between 2017-2018 and only a dozen or so for sale used at anytime recently and the prices are up to $45K. So if I were to keep a Cadillac EV maybe a Lyriq, Vistiq, or a Lumistiq in the future.
June 27th, 2022 at 8:25 pm
14 I agree that an i3 REx can be used for highway trips, if you don’t mind frequent stops and mediocre mpg, and don’t want to go too fast. Still, an i3 is at its best as a commuter car, using plug-in power. BTW, my motorcycle, a Kawasaki KLR650 “dual sport” has more range, more than 200 miles at 70 mph.
June 27th, 2022 at 10:35 pm
15 I can’t figure why GM repeatedly comes out with nice cars like the CT6, and then orphans them almost immediately. The CT6 in all versions was attractive, comfortable, and quiet. The interior was not S-Class, but then, neither was the price. They even did “special” versions of CT6 like the plug-in hybrid and Blackwing. By all accounts, both worked quite well, in different ways, so they dropped them after 2 years. It seems they waste an awful lot of money on these short lived cars, that deserve more.
June 27th, 2022 at 11:39 pm
# 17.) This too is an issue with sell a Celestiq for $300K+, that being how quickly GM/Cadillac looses interest in a vehicle that takes a minute to gain traction. I understand that the General doesn’t want to waste time and money on a dud, but if a vehicle is not an immediate home run, they cut bait and leave it out to dry. If BMW would have done the same with the Phantom the brought to market, how much confidence would buyers have for their next vehicle? The same goes for VW with the first Bentley Continental GT! I still don’t see a hand built electric Cadillac, holding a candle to an ICE Rolls Royce, Bentley or Bugatti. A Tesla Model S Plaid, Lucid Ait Dream addition and a Polstar #5? Without a doubt! Yet, those vehicles ring in at between $100 to $200K and not the Celestiq will be asking for. I could definitely see Cadillac doing a hand built luxury EV flagship, between $150~200K. The hand built quality would definitely put in the realm of other full-size luxury barges from Mercedes, BMW and Audi. Increasing the Celestiq’s limited run from about 500 to close to 1000, would still keep it with its rare, boutique status and return about the same amount to money. Yet, outside of China, I don’t see how Cadillac will be able to sell the Celestiq for $300,000!
June 28th, 2022 at 2:32 am
17 Kit – The CT6 is still being built in China, and Norm’s PHEV was most likely made there. CT6 Sales as per Wikipedia:
Calendar year United States China
2016 9,169 5,830
2017 10,542 11,917
2018 9,668 17,223
2019 7,951 22,637
2020 3,117 21,689
2021 - 17,715
Cadillac had its best year there in ’21 with 233K sales, though ’22 looks to be abysmal likely due to the prolonged, Xi-inspired lockdowns. High time for an Uptiq?
June 28th, 2022 at 5:55 am
Cadillac’s biggest mistake with the CT6 besides dropping it in America was that it put the infamous 8-speed tranny in the first couple years of production. And while the 8-speed was mostly remediated with a transmission oil reformulation and total replacement, the damage was done. I bought and have a ’19 CT6 with the 3.6 L and 10-speed transmission which is stellar (IMO); quiet, smooth, handles nicely and gets phenomenal fuel mileage for its size. What the Celestiq is being produced for is to showcase Cadillac’s potential for building a ‘top of the heap’ vehicle and is pretty much a “halo” car; it is not being built to be a profit center, and at 400 vehicles per year, not really an aspirational car either, just showing off, as it were.
June 28th, 2022 at 7:28 am
18 Yep, all of the CT6 PHEVs were made in China, or so I’ve read. Thanks for sales numbers.
A problem I had with the CT6, was that the only available engine with RWD was the turbo 4. Then, the last year, they were sold in the US only with AWD.
19 I knew, from personal experience, that the 8-speed had problems in C7 Corvettes, but didn’t know it had problems in other applications. I hope it’s fixed now, because they are still using them in some Camaros and pickup trucks, and maybe big SUVs.
June 28th, 2022 at 8:51 am
19) 100% a Halo car and I am very happy to see it. I think Cadillac needs to go up market not down market. Cadillac is competing in turf that Buick would be better competing at. There is not much point for Buick as a result. Move Cadillac upmarket and suddenly Buick has a reason to exist and GM sales ladder makes much more sense. Buick could also withstand going a little more upmarket instead of being a leather clad version of a Chevrolet.
June 28th, 2022 at 9:07 am
Seems there is room for Cadillac to go more upscale and really go after a position next to the likes of BMW and MB. I’m not sure how a Halo car accomplishes that other than showing what they are capable of doing. But when it comes to the mainstream vehicles in their stable will that trickle down? Or will that continue to be business as usual? I think Cadillac would be better served to move the bar up on all its models to be a direct competitor to MB quality and luxury at a slightly better price. The launch a Blackwing (or whatever name) versions that are super high end with some hand built options like custom interiors and maybe even go back to offering some convertibles. Sort of like what Roush or Shelby does with Ford but rather than sport upgrades go luxury upgrades with maybe some performance enhancements too. That would allow Caddy to maintain its core customers and support a high end version that can command the luxury high prices that can put them in contention with the big boys.
June 28th, 2022 at 10:13 am
Holy crap is that McMurty fast . It was nearly 7 seconds faster than the second place car over just a 1.16 mile course . Average speed was 94.91 MPH . Unbelievable how much faster it even looked than the 2nd fastest car which was also electric. Would love to know the G’s that pulled. It had to be damn near fighter jet levels.
June 28th, 2022 at 10:25 am
22 Cadillac is currently competing with MB and BMW in sedans, but sedans aren’t selling.
The Cadillac crossovers are, mechanically, like Chevys with transverse engine powertrains, while the M-Class, X5, etc. are longitudinal engine, rear-drive based. The Germans’ powertrains are considered more upscale, but do people who buy these vehicles even know or care? It seems that Cadillac has an image problem, partly due to past substandard vehicles, along with a dealer experience that, in many cases, isn’t up to the standards of the Germans and Lexus. If the Lyriq turns out well, it might give Cadillac a reset. I hope it does.
June 28th, 2022 at 10:36 am
GM 8 speed – Our 2016 Corvette received the triple flush in September 2019 with the latest ATF (M1 Syn LV ATF HP 124715) & the occasional shudder went away. I will also admit that after this was done I installed a Range device that keeps the engine in V8 mode vs 4 cyl. Given the limited annual mileage I’m not really concerned about any fuel economy loss.
June 28th, 2022 at 11:01 am
24 I’m not sure how Cadillac shakes the years of poor management with its shared platforms and components from other GM divisions in what essentially was Buick like Chevys.
If Cadillac has an actual goal to be on a level playing field with the Europeans they need to keep the separation and the problem is the overall quality of all cars has gone up to even entry level cars are pretty nice. Electronic stuff is fairly cheap and so you basic or basic cars get power windows AC and automatic transmission standard and with the a single option package you can end up with some driver assist features touch screens and so there isn’t much of an entry level market left. Seems all cars are more equal and depending on the options the overlap is more-so now.
Cadillac really needs to keep itself separate from other GM divisions and not share anything visible on the exterior or interior of the car. I’m with you kit that most don’t know or could care about powertrains suspension or even transmissions. Which is why EV’s provide a great opportunity to really take Caddy to the next level. A skateboard platform can keep the cost down and be shared among many GM products allowing Caddy to really focus on the interior and exterior design and materials to step up their game.
I believe the downside to EV platforms is vehicles will become very much alike in driveability and ride. Also the exterior designs seem to be evolving into a all familiar CUV/SUV shape making the interior even more important. Its going to make standing out from the crowd even harder. So customization and being able to make your vehicle a one of a kind is going to be a thing for the ones that can afford it. Everyone else will end up driving a basically look alike vehicle. IMO
June 28th, 2022 at 11:02 am
27 was that to Kit in 25
June 28th, 2022 at 11:15 am
27 Electric powertrains will remove a big selling point of certain cars, since they will all be essentially alike. I bought a Highlander hybrid over the similar size competition for one and only one reason, the powertrain. If I could have gotten an XT5 with the Toyota hybrid powertrain, I would have considered it, depending on the price difference. I like the appearance of the XT5 a lot better.