AD #2458 – Tesla’s China Disadvantage, 2019 Chevrolet Camaro Updates, BMW Begins Shipping X7

On today’s show…Tesla faces a huge cost disadvantage in China…Audi is using artificial intelligence to help build better cars…and the U.S. Congress just might extend those subsidies for electric cars. All that and more coming right up on Autoline Daily.

This is Autoline Daily the voice of the automotive industry.

SENATOR PROPOSES TO ELIMINATE EV CREDIT CAP
Tesla and General Motors have lobbied Congress to increase the number of electric vehicles that qualify for a $7,500 tax credit. And it looks like those efforts are paying off. Nevada Senator Dean Heller just introduced legislation to eliminate the cap, but it would phase out the tax credit completely by 2022. Currently, once an automaker sells 200,000 EVs, the credit starts to phase out. Tesla has already reached that number and GM says it will hit it by the end of the year.

TESLA’S CHINA DISADVANTAGE
Meanwhile Tesla just bought the land it needs to build an assembly plant in China. And it really needs it. China recently slapped a 25% import tax on American-made vehicles, on top of a 15% tariff that already existed. Thanks to those taxes, Bloomberg reports that a Tesla Model X 75D costs about $144,000 in China. If those tariffs were not in place it would cost $88,000. In the U.S. the same model costs about 80 grand. But if Tesla made cars in China, they would qualify for sales subsidies. The cost of a comparable car from NIO now costs $55,000 thanks to government subsidies.

BMW BEGINS SHIPPING X7
BMW is finally shipping its gargantuan SUV, the X7. We’re in a world where customers increasingly want SUVs and BMW needed a full-size, 3-row utility in its lineup. Starting at $75,000 in the U.S. market, this thing is going to generate big, fat profit margins for the Bavarian automaker. The X7 will come down the same assembly line in Spartanburg, South Carolina as do the BMW X3-4-5 and 6. The base engine is an in-line 3-liter six, generating 335 horsepower and 330 pound feet of torque. There’s also an optional a twin turbo 4.4 liter V8 generating 456 horsepower and 479 pound feet. Both are mated to an 8-speed automatic. There is a ton of information available on this beast, so click on the link in the transcript available on our website or in the description box below to learn more about it.

Coming up next, the auto industry is getting ever more involved with augmented reality and artificial intelligence.

HEAD-UP DISPLAY WITH AUGMENTED REALITY
Head-up displays with augmented reality may seem like science fiction to some, but supplier Continental is bringing the technology closer to reality. Its figured out a way to shrink the size of the projection unit and says industrializing the technology is within reach. Conti has revealed a full-color demonstrator to show how it works.

AUDI TESTS AI FOR QUALITY INSPECTIONS
Audi is testing using artificial intelligence for quality inspections at its press shop in Ingolstadt, Germany. The company currently uses humans and cameras to inspect sheet metal parts for cracks. But it can be a time-consuming process. So, Audi developed software, mainly in-house, that is able to automatically recognize cracks in parts in only a few seconds. In the future, the company says machine learning can be used for other visual quality inspections, like at paint or assembly shops.

When it comes to sales, the Mustang is killing the Camaro. Coming up next, we’ll show you how Chevy is fighting back.

2019 CHEVY CAMARO UPDATES
Did Chevy raid the paint closet over at Dodge? The 2019 Camaro will be available with this eye-popping color, called Shock yellow. On top of new front and rear end styling, the muscle car will also come with a bunch of new accessories and performance parts, including new ground effects, cold-air intake kits, Brembo brake upgrades and 1LE suspension components. The new color and add-ons will be displayed on a Camaro SS show car at SEMA, which also features concept front end styling.

SKODA INTRODUCES NEW SUV IN CHINA
One out of every four SKODA models delivered last year was sold in the Chinese market. And the Czech automaker just revealed its first SUV coupe, called the KODIAQ GT, which will be exclusive to the region. Its 2.0L engine comes in two power outputs and can be paired to front- or all-wheel drive. It also gets a connectivity features, a number of driver assistance systems and a virtual cockpit. With the introduction of the KODIAQ GT, China will be the only market where SKODA offers 4 SUVs.  

And be sure to join us this Thursday for Autoline After Hours, when we’ll take a deep dive into the Ford flathead V8, which came out 86 years ago. Craig Cole who works at Auto Guide and is a hardcore flathead fan, will drag an engine into the studio. So join us for a good nuts and bolts show when we go live Thursday afternoon.

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