AD #2400 – Trump Backs Off on EU Tariffs, Toyota Sees Profit in Fuel Cells, Daimler Splits into Three Separate Units

On today’s show… Trump says he will not slap higher tariffs on European cars… a lot of Americans say they would buy a Chinese car… and you can soon order a Ford F-150 pickup with a Raptor engine. All that and more coming right up on Autoline Daily.

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

TRUMP BACKS OFF ON EU TARIFFS
Good news for European carmakers. In a meeting yesterday with the President of the European Commission, President Trump agreed to not impose tariffs on imported cars and parts. In exchange, Europe agreed to buy more liquefied natural gas from the U.S. and lower barriers for American soybeans. Reuters also reports that the Trump Administration will “reassess” aluminum and steel tariffs enacted earlier this year. That’s good news for automakers who have seen their profits crimped by higher steel prices.

TOYOTA THINKS FUEL CELLS WILL TURN PROFIT
Toyota wants to expand production of fuel cell vehicles, or FCVs. In fact, it hopes to introduce a range of FCVs starting in 2025, from SUVs to commercial trucks. While experts generally see FCVs as unviable, the Chief Engineer of the Toyota Mirai sees things differently. In an interview with Reuters, he said that by cutting production costs of FCVs and moving them from limited production to mass production status, Toyota could turn a solid profit on them. This means using less of the expensive materials, like platinum, that it currently use in FCV production. Toyota also believes the range of the Mirai could be increased to 700 kilometers, that’s about 434 miles, by 2025.

F-150 LIMITED GETS RAPTOR POWER
The top-of-the-line F-150 Limited is getting the Raptor V6 for 2019. The idea behind the move is that customers want Raptor power, but also want something more refined. The 2019 Limited will sport 450 horsepower with 510 lb.-ft of torque. Like the luxury truck that it is, the F-150 Limited will feature a suede headliner, massage seats, as well as adaptive cruise control that can bring the truck to a complete stop in traffic. The 2019 F-150 Limited will be available later this year.

Want to go grocery shopping in an autonomous car? Then Waymo has a ride for you. And that’s coming up next.

WOULD AMERICANS BUY A CHINESE BRAND CAR?
Would American consumers buy Chinese cars? A new survey says at least one out of four Americans say yes. The car shopping website Autolist did the survey. Of the over 1,550 people it talked to 28% said they would consider buying a Chinese brand vehicle. And no surprise, 40% of those people said price was leading reason why they would. 35% said they wouldn’t want a Chinese vehicle because of questions over reliability, safety, and a lack of a dealer and service network. The survey also showed that the least likely to consider a Chinese vehicle own an American brand vehicle, while owners of Korean vehicles were the most likely. But this does highlight some of the areas Chinese automakers should focus on and the areas where they need to work harder.

WAYMO EXPANDS IN ARIZONA
Waymo announced it will give rides to people in Phoenix, Arizona who order groceries at Walmart.com. They place their order, then get a ride to the nearest Walmart as their order is being prepared, and then get a ride back home. Waymo is also growing its partnerships with Avis and AutoNation. Avis, which already refuels and charges Waymo vehicles, will provide autonomous vehicles to help customers pick up or drop off their rental cars. And AutoNation will offer them to people who are having their personal vehicle serviced, rather than giving them a rental.

MERCEDES A-CLASS SEDAN COMING TO AMERICA
Mercedes-Benz just announced it will offer the A-Class sedan in the American market. It will replace the CLA, as it’s nearly exactly the same size. There will be a next generation CLA, but that will likely get bigger. Power for the A-Class comes from a 2.0L turbo 4 that makes 188-horsepower and gets mated to a 7-speed DCT. All-wheel drive is optional. Two 7-inch display screens, one for the instrument cluster and one for infotainment are standard, but the option for two 10 and a quarter inch displays is available as well. The new A-Class goes on sale in the U.S. later this year, but no pricing yet.

Speaking of Mercedes, it’s parent company Daimler is splitting itself into three separate companies and coming up next we’ll tell you why.

DAIMLER SPLITS INTO 3 SEPARATE UNITS
In just another example of how the move to mobility services is changing the industry, Daimler announced it is splitting into three separate business units. Under a plan called Project Future, the three units are Mercedes-Benz Cars and Vans, Daimler Trucks and Buses, and Daimler Mobility. Each of these units will be legally independent companies, which will be empowered to enter partnerships with other companies on their own. To get German unions on board, Daimler is promising job security for factory workers until 2029. Each of these companies could have their own stock, so this could also be a way to unlock shareholder value. The Chinese company Geely recently bought nearly 10% of Daimler’s stock and it will be interesting to see if this move dilutes Geely’s influence over the company.

Speaking of autonomous cars and mobility services, how’s that going to affect the performance market? That’s going to be one of the topics on Autoline After Hours later this afternoon. We’re also going to preview some of the historic vehicles that will be at the Concours of America that takes place this weekend. So join John and Gary as they look to the future and keep an eye on the past.

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