AD #2494 – Nissan & Ghosn Indicted in Japan, China Sales Continue to Plunge, VW Going Retro with Electrics

On today’s show… Carlos Ghosn and Nissan are indicted over allegations of financial misconduct… car sales continue to plunge in China… and why a gearhead would ever want to own a Tesla Model 3. All that and more coming right up on Autoline Daily.

This is Autoline Daily the voice of the automotive industry.

GHOSN FORMALLY CHARGED IN JAPAN
Nissan’s former Chairman, Carlos Ghosn, has now been formally charged by Japanese prosecutors over allegations of financial misconduct. He has been in jail since being arrested on November 19th but hadn’t been officially charged until now. He’s being accused of under reporting his income by $43 million. Nissan board member Greg Kelly, who was arrested with Ghosn, was also indicted. And prosecutors indicted Nissan for its role in the scandal, which means the company could be held culpable as well. Ghosn faces up to 10 years in prison if he’s convicted.

CHINA SALES CONTINUE TO SLIDE
Car sales continue to slide in China. According to the China Passenger Car Association, automakers sold just over 2 million vehicles in November, which is a drop of 18%. That’s the sixth month in a row they’ve slid in the country. And through the first 11 months of the year, sales are down 4%, which means that it could be the first time in at least two decades that sales are down on an annual basis.

BMW & DAIMLER TO FORM MOBILITY JV
Automakers think that mobility services could represent a whole new business for them to get into. They see a big chance to make big money. That’s why we’re seeing so much activity in this field. And now BMW and Daimler are teaming up to jump into that market and will establish a joint mobility company next year. The two companies planned to create the company this year but had to delay it, to wait for approval from European and U.S. antitrust authorities. But it’s interesting to see two rivals partner up to tackle this new market.

And we’ll be back with more right after this.

VW GOING RETRO WITH ELECTRICS
Volkswagen’s upcoming line of electric vehicles will all have I.D. somewhere in their name and according to WardsAuto, at least three of those models could be retro-themed. We’ve already seen the microbus-inspired I.D. Buzz, but there will also be a 2-seat version of the Meyers Manx. That was a Beetle-based dune buggy produced between 1964 and 1971. VW will unveil the concept at the Geneva show in March and the vehicle is under “active consideration” as a possible production model. Wards also reports the automaker is working on a 5-door hatchback that’s described as a “contemporary re-creation” of the iconic Beetle.

BORGWARNER HELPS AUTOMAKERS TO HYBRIDIZE
But even as the automotive industry starts to make its push into the world of fully electric vehicles, the internal combustion engine will still play a big role for a long time to come. One way to bridge the gap is to hybridize a vehicle and supplier BorgWarner is making that decision easier for automakers. Its drive module that sits between the engine and transmission provides full hybrid function and takes up less space and is lighter than other units, which means it requires less investment to integrate it. Internally there are 3 clutch modules: one set to disconnect and restart the engine, one set for the odd gears and another for the even gears. This helps enhance shift feel and reduce drag up to 20%. And to improve useability, the drive module is compatible with automatic, CVTs, dual clutch and manual transmissions.

Why the heck would a gearhead with gasoline in their veins ever want to own an electric vehicle? Find out why, right after this.

WHY A TRADITIONAL GEARHEAD WANTED AN EV
Henry Payne, the car critic for the Detroit News, is a gearhead with gasoline in his veins. But he recently bought a Tesla Model 3. So why the heck would someone who loves to race cars want an electric vehicle? He was our guest on last week’s Autoline After Hours and here’s what he had to say.

(Clip from AAH #444 can only be viewed in the video version of today’s show.)

For more about Henry’s experience with the Model 3, you can watch that entire episode right now on our website or you can find it on our YouTube channel.

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