Listen to “AD #3487 – VinFast Offering Deals Because Tesla Cut Prices; Michigan Welcomes Chinese Investment; Shell Buys EV Charging Network” on Spreaker.
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Runtime: 10:24
0:00 VinFast Offering Sales Promos to Compete with Tesla
0:44 Michigan Welcomes Chinese Investment
1:46 CATL Starts Making Chassis w/ Integrated Cells
2:45 Shell Buys EV Charging Network
3:21 Winnebago Going Electric
4:26 VW Develops Smart HVAC System
6:52 EV Sales Top 1 Million in the EU
7:48 Mercedes Improves Electrified CLAs
8:32 Porsche Offers Modern Screens for Old Cars
9:17 Cox Automotive Less Optimistic on Sales
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VINFAST TO OFFER DEALS TO COMPETE WITH TESTA
Tesla’s price war is starting to take casualties. Several automakers in China already cut prices and now Vietnamese automaker VinFast, says it will offer sales promotions in the U.S. to keep its models competitive with Tesla. VinFast started shipping its first vehicles to the U.S. in November and plans to start delivering them this month. We think most automakers will probably offer discounts and deals on their EVs instead of chopping the MSRP. Because once you cut the MSRP, it really hurts your residual values.
MICHIGAN WELCOMES CHINESE INVESTMENT
You’ve probably heard that old saying from Alexander Graham Bell, “When one door closes, another opens.” Well, yesterday we reported that the Governor of Virginia Glenn Youngkin slammed the door on Ford and Chinese company CATL who wanted to build a battery plant in his state. But today the Governor of Michigan, Gretchen Whitmer, opened the door for that plant to land in her state. Governor Younkin says the battery plant would, and I quote, “serve as a front for the Chinese Communist party, which could compromise our economic security and Virginians’ personal privacy.” But Governor Whitmer said, and I quote, “We are focused on jobs for Michiganders and securing (that) the future of mobility is built in Michigan by Michiganders.” That plant is expected to generate 2,500 jobs and represent a multibillion dollar investment. So what do you think? If you were a governor would you want that plant in your state?
CATL STARTS MAKING CHASSIS WITH INTEGRATED CELLS
Meanwhile, CATL, which is the biggest EV battery maker in the world is moving beyond just making batteries. It’s going to start making chassis with integrated battery cells. That gets rid of the need for battery modules, which cuts size, cost and weight. And that makes us wonder if Ford would use that approach in its next generation EVs.
SHELL BUYS EV CHARGING NETWORK
Here’s an interesting development. Shell’s U.S. subsidiary announced it’s buying the EV charging network Volta for $169 million. Shell USA will acquire all of Volta’s assets, including its network of 3,000 charge points located in 31 states. We find it interesting that an oil company is jumping into the EV charging business and it’s something we’re seeing more of. Shell has a deal with BYD to build chargers in China and BP is investing over a billion dollars to install chargers around the world.
WINNEBAGO GOING ELECTRIC
Many people are enamored with #vanlife and like the rest of the industry, it too is going electric. Motorhome company Winnebago is in the final stages of field testing its EV camper prototype, called the eRV2. It’s based on the Ford E-Transit and provides an estimated 108 miles of range from its 68 kWh battery pack. Winnebago also says it’s looking at coming up with some sort of range extension system for a future version. And in order to power all the accessories, the company developed its own in-house battery system, called IonBlade. When combined with a 900 watt solar system that starts just behind the windshield, on the roof, it can provide enough juice for a week of off-grid camping or boondocking. Winnebago is not saying when it will go on sale, only that these tests “will inform the eRV2’s final design before hitting dealerships in the future.”
VW DEVELOPS NEW SMART HVAC SYSTEM
Efficiency is extremely important to EV range, so Volkswagen developed a new smart HVAC system that will first debut on the ID.7. And it actually all starts before the driver even enters the vehicle. As soon as it detects the key approaching, the system activates and adapts to outside conditions. When the door is opened, it can also automatically control airflow to keep really hot or cold air out of the cabin and when users sit down it can redirect the air directly onto their body, so they get comfortable quickly. This automatic airflow control allows for voice commands as well, like “Hello Volkswagen, my hands are cold” and it will turn the vents to the steering wheel. The last bit of cool tech is the system has been integrated with a light sensor on the windshield, so it can detect the angle of sunlight and adapt the air conditioning system on the side that’s getting blasted by light. The ID.7 launches in China and Europe this year, followed by North America in 2024.
We’ve got a great Autoline After Hours show coming up this afternoon. It’s all about Project Arrow, that Canadian project to create an electric car completely and entirely in Canada–even the raw materials. Flavio Volpe, the head of the Automotive Parts Manufacturing Association of Canada, which helped spearhead the project will be on the show. So will EV expert and journalist John Voelcker. We’ll also get into other EV topics, like the EV price war that Tesla started, and whether states should shut out Chinese battery suppliers or welcome their investment. So join John and Gary when the action gets going at 3 pm eastern time today.
EV SALES TOP 1 MILLION IN THE EU
Fiat surprised everyone when the 500e became the best selling EV in Europe last year for A-segment cars. It sold over 44,000 of them. So we were also pleasantly surprised to see that the Peugeot 208e was the best selling EV in the B-segment. Peugeot sold 21,700 of them. All told there were over 1.2 million EVs sold in Europe last year according to the website EU-EVs, which tracks registrations in European countries. Tesla topped the list with 15% market share, followed by the Volkswagen brand at 11.3%. But if you count the entire Volkswagen Group, including Audi, Porsche, Skoda and SEAT, it outsold Tesla, about 277,000 for the VW Group and about 193,000 for Tesla.
MERCEDES IMPROVES ELECTRIFIED CLAs
Mercedes is improving the electrified versions of the CLA. Actually the whole CLA line is getting a fresh styling front and rear, a new user experience and updated driver assistance system. But the real story is that mild-hybrid versions get a new starter/generator with 10 kW more power, which also improves efficiency, and plug-in versions get more power and a bigger battery. Electric motor power increase slightly to 80 kW and the battery is now 15.6 kWh, which provides 68-82 kilometers or 42-50 miles depending on the model.
PORSCHE MAKES MODERN SCREENS AVAILABLE FOR OLD CARS
In 2020, Porsche started offering infotainment screens that can be retrofitted into older cars. And now it’s making them available for more models. It features a 7-inch touchscreen, navigation, Bluetooth, Apple CarPlay and Android Auto. And there are regional versions available as well, so owners in the U.S. and Canada can get systems with SiriusXM ready. The screens are now available for 911 Type 997s, Boxsters and Caymans from 2005-2008 as well as Cayenne’s from 2003-2008. The screens cost about $1,500 and can be ordered from the dealer.
COX AUTOMOTIVE LESS OPTIMISTIC ON SALES
Hold the horses! Up to now most automakers and forecasters thought that new car sales in the U.S. would hit around 15 million vehicles this year. But the analysts at Cox Automotive think that’s too optimistic. They say sales will come in around 14.1 million and they blame economic uncertainty–but with one caveat. If some automaker decides to go for volume and starts cranking up inventory and offering discounts, sales could be higher. But Cox Automotive believes automakers would rather sell 14 million vehicles profitably, than sell 15 million with big discounts.
But that’s a wrap for today. Thanks for joining us.
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Seamus and Sean McElroy cover the latest news in the automotive industry for Autoline Daily.