AD #2309 – Buick Axes “Buick” Badge, VW Secures Billions for Battery Supplies, Tesla Could Put Strain on Rare Earth Demand

On today’s show… you won’t see the name Buick on its vehicles in the future… Volkswagen is spending billions to grow its lineup of electric vehicles… and Acura teases the production version of the RDX. All that and more coming right up on Autoline Daily.

This is Autoline Daily the show for enthusiasts of the automotive industry.

WHEN IS A BUICK NO LONGER A BUICK?
Here’s something interesting. Buick will eventually drop the name “Buick” from all of the models it sells. It instead will just use Tri Shield badge and the name of the vehicle itself. The Envision is the first Buick model to follow this new path. Of course it’s not the only one to do this. Audi, Hyundai and Volkswagen don’t plaster their names on their vehicles either. But I wonder are vehicles starting to look so much alike that people don’t care as much about the name? What do you think? Will this change make any difference?

GM TO TEST AIRBNB-LIKE SERVICE
And speaking of GM, Bloomberg reports the automaker plans to roll out a pilot program for an Airbnb-like ride-sharing service this summer. How it will work is GM vehicle owners will be able to rent out their car, truck or utility when they aren’t using them by registering on GM’s ride-sharing platform, Maven. It’s a smart move by the company. Not only could GM grow its vehicle fleet, it won’t have to supply the vehicles itself, which is reflected on its balance sheet and will still be able to generate revenue. If the pilot program is successful, the service will likely become a full-time part of Maven.

Still to come… Acura is getting set to introduce the production version of the RDX.

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TOYOTA PARTNERS WITH AVIS RENTAL
Toyota just partnered with rental car company Avis Budget to add 10,000 connected cars to its fleet. Avis will use Toyota’s proprietary Mobility Services Platform, which will allow customers to receive real-time info with Avis’ mobile app, like vehicle location and virtual odometer readings and fuel levels. And for Avis, the connected cars will improve fleet management and enable shorter check-in and check-out times.

ACURA TEASES PRODUCTION RDX
At this year’s Detroit auto show, Acura revealed a prototype version of the RDX. And at the end of the month, the company will unveil the production version at the New York Auto Show. It was designed and created in the U.S. for the first time. And it’s powered by a 2.0L turbo engine that’s mated to a 10-speed automatic transmission. That Detroit prototype was pretty production looking to us, so we wouldn’t expect too much to change. But the new model should help sales, which are down 9% so far this year.

Coming up next, the Volkswagen Group has ambitious plans to expand its lineup of electric vehicles.

VW CONTINUES BIG ELECTRIC PUSH
In order to distance itself from its diesel emission cheating scandal, Volkswagen is making a big push into electric vehicles. The company just announced its secured 20 billion euros, about $25 billion, in battery supplies. It has deals with Chinese and European suppliers and says a deal for North America will follow shortly. The VW Group currently has 3 plants producing EVs but by 2022 that number will grow to 16. And by 2025, the company plans to produce 3 million electric vehicles a year. CEO Matthias Mueller says, starting next year, the 12 brands in the VW Group will introduce a new electric vehicle “virtually every month.” It plans to have 80 new EVs in its lineup by 2025 and is aiming to have an electric version of all of its 300 models by 2030.

TESLA COULD PUT STRAIN ON NEODYMIUM DEMAND
And speaking of EVs, Reuters reports that Tesla’s decision to switch to a magnetic motor that uses neodymium for its Model 3 Long Range model, is going to put a strain on supplies of the rare-earth metal. The price of neodymium is about $70 a kilogram, which is 40% higher than at the beginning of 2017. And demand for the metal hit 31,700 tons last year, but supplies were 3,300 tons short of that. Analysts say Tesla’s switch will make it more difficult to satisfy demand. But automakers are looking for alternatives. Last month, Toyota revealed its developed a magnet that cuts neodymium by about a fifth and is aiming to use it within the next 10 years.

But that’s it for today, thanks for watching and please join us again tomorrow.