AD #4312 – Can New Hypercar Turn Audi Around?; Trump Warns Industry About Right-to-Repair; Another Chip Shortage Brewing

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

CAN NEW HYPERCAR TURN AUDI AROUND?
Audi’s global sales have plateaued over the last 5 years and its operating profit is half of what it used to be. The brand clearly needs something to get things going again, and it hopes that the Nuvolari hyper-car will do exactly that. Not only is the mid-engine sports car a technological tour de force, it also signals the new design language for the company. Its twin-turbo V8 hybrid powertrain cranks out over 1,000 horsepower, including the output of two axial flux motors at the front axle and one behind the V8 that are rated at 147 horsepower apiece. The Nuvolari boasts a top speed over 350 kilometers an hour, or about 217 miles an hour. It’l do 0-100 kilometers an hour in only 2.6 seconds. 0-200 is only 6.8 seconds. And it even uses a drag reduction system, like Formula One, that will deploy the rear wing to different settings for better downforce under braking or less drag on the straights. Audi will only build 499 Nuvolaris and they’ll go on sale about a year from now. Now we hope the company can bring some of the same excitement to the rest of its line-up.

ANOTHER CHIP SHORTAGE BREWING
Uh-oh! The auto industry is facing another chip shortage. The Alliance for Automotive Innovation, a lobbying group that represents most major automakers and suppliers, along with several other business groups sent a letter to the U.S. Treasury and Commerce departments warning that there’s a shortage of memory chips, which is boosting prices of goods and disrupting supply chains. The shortage is being caused by the growing number of AI data centers which need the chips to power them. If supplies aren’t boosted, expect to see tighter inventory of vehicles and higher prices for both new and used cars.

INDIA INTRODUCING E85 FUEL
To help reduce its reliance on imported oil, India is introducing E85 fuel. The country currently sells E20, which contains 20% ethanol, while E85 contains 85%. The fuel will initially be sold at 50 pumps in the country and analysts say widespread adoption will depend on how it’s priced compared to E20. Rather than trying to transition to pure electrics, government officials believe that increasing the number of vehicles that run on hybrid fuels, is a faster and more cost-effective way to reduce oil use. Oil consumption in India has risen by an annual average of 9% over the last five years, which has boosted imports. And now with the war in Iran increasing the cost of oil, India is looking to cut that dependence.

CHINA DEVELOPING AXIAL FLUX MOTORS
Look out Mercedes, China isn’t going to let you corner the market on axial flux motors. Chinese researchers are working on a high-performance version of the electric motor that uses a new permanent-magnet material, which is meant to address instability at high rotational speeds. Axial flux motors are more flat and round and have a number of discs that make up the rotors and stators. That gives them a larger area to interact, generating impressive amounts of power from a smaller, lighter package. The Chinese researchers say their motor could also be used in robots and aircraft, but it sounds like it’s still in its testing phase, while Mercedes-AMG GT is about to hit the market.

TRUMP TELLS AUTO INDUSTRY LET PEOPLE FIX THEIR OWN CAR
President Trump recently met with several top officials from the auto industry and talked about how they “don’t want people to fix their car.” He’s likely referring to the ongoing fight over right-to-repair, which is the concept that once you buy something, you own it. So, you have the right to maintain, modify, fix it or take it to whoever you want to fix it. The entire service market generates about $200 billion a year, so that’s what they’re fighting over. In 2014 automakers made a commitment that they would provide all repair instructions, tools and diagnostic codes to dealers and independent repair shops. But now automakers use more wireless data and software control, which don’t fall under those 2014 guidelines and makes it difficult for consumers and independent shops to do things like make updates to control units and calibrate safety systems. It also makes it difficult for companies to make after-market parts, but automakers argue those could provide both safety and security risks as well. On top of that, car companies say 75% of post-warranty work is already done at independent repair shops, so they think the current system is clearly working. However, there’s legislation making its way through the U.S. that could make that 2014 commitment law and give the FTC the power to enforce it. And the President said after his meeting with GM’s Marry Barra, Ford executive Andrew Frick, Roger Penske and officials from the national dealers association and the Alliance for Automotive Innovation that he didn’t understand any moves to stop people from fixing their cars. “So I thought we’d do something about that. But we’ll get it all straightened away.”

DONGFENG IMPROVES LARGER ENGINE THERMAL EFFICIENCY
China has been setting records for the thermal dynamic efficiency of its IC engines used as range extenders. But up to now that was mostly with 1.5 liter turbos. Now, Chery and Dongefeng have developed 2-liter turbos with 45.5% thermal efficiency. Keep in mind that most IC engines operate at 30-35% thermodynamic efficiency. Here’s how Dongfeng got there. It has a long stroke-to-bore ratio. The fuel injectors operate at 350 bar, which is 5,076 psi. It runs higher levels of EGR, or exhaust gas recirculation, and it cools the gas, at a low pressure, before recirculating it. It uses a variable vane turbocharger as well as a variable displacement oil pump. And it uses DLC, or diamond like carbon, coatings on all reciprocating parts. What we didn’t learn was the compression ratio. EREV engines operate in a smaller rev-range than regular IC engines, which allows them to tolerate higher compression ratios and higher levels of EGR, which are so important to boosting thermal efficiency.

CHINA CITY HELPS IMPROVE EV INSURANCE
Just like in the U.S., insurance for EVs is higher than gas powered cars in China. There’re several reasons, including vague standards for assessing battery damage and difficulty figuring out who’s liable in ADAS accidents, which is technology that’s more common in EVs. So, to help the city of Shenzhen is implementing new rules for insurance. One plan is to charge owners a basic fixed fee and a flexible fee, based on the car’s mileage. Currently, owners pay a flat price no matter how much they do or don’t drive. And the second plan is to clearly define payout rules for accidents involving smart technology. Analysts say if the new policies are successful, they could be adopted throughout China.

But that’s a wrap for today’s show. Thanks for making Autoline a part of your day and I hope that you have a great weekend.