AD #2602 – Subsidies Fuel EV Sales, Why Consolidation Hasn’t Occurred in China, Back Seat Reminder Mandate Proposed

This is Autoline Daily reporting on the global automotive industry.

BACK SEAT REMINDER MANDATE PROPOSED
A few years back, GM introduced a safety system to remind drivers to check for children in the back seat. And now, new legislation has been introduced in Congress that would mandate the technology. The bill would also require a study to look at the feasibility of making the technology available for older models. Last year, 48 children died of heat stroke in cars and over the last two decades 800 have died. The Alliance of Automobile Manufacturers said it will review the legislation but it didn’t exactly endorse it either. It pointed out that only 13% of new car buyers have children 6 years old or younger and that it takes two decades for a technology to be installed in all cars.

EV SALES FUELED BY GOVERNMENT SUBSIDIES
It isn’t easy being green. Even though sales of electric cars are soaring on a percentage basis, much of that growth is fueled by government subsidies. South Korea has one of the most generous subsidies. It’s not a tax write off, it’s a $13,900 rebate that goes directly to consumers. Some of the bigger cities provide more subsidies worth anywhere from $2,700 to $7,400. Yet only 1.6% of Korean car buyers buy electrics. China recently slashed its subsidies in half to about $3,700 for EVs that can go 240 miles on a charge. EVs with less range get no subsidy at all. But in major Chinese cities like Beijing and Shanghai EV buyers can get a license plate for free, while others have to buy one at auction for over $10,000, so it’s a major incentive to buy electric. In the U.S., Tesla saw a sharp drop in sales as its tax credit fell in half. At some point in the future, electric cars will likely find natural market demand. But right now, they depend heavily on government subsidies to get people to buy them.

WHY CONSOLIDATION HASN’T OCCURRED IN CHINA
Nearly two decades ago, China implemented a five-year plan for its auto industry, which has been updated over the years, that set the goal of having 4 major automakers and 3 to 4 mid-level companies. But instead, there’s still dozens of domestic automakers operating in the country. On Autoline This Week, Michael Dunne, an expert on the Chinese auto industry and the CEO of a company called ZoZo Go, explains why we haven’t seen any consolidation yet.

(The ATW preview is only available in the video version of today’s show.)

Michael Dunne shares a lot of fascinating insight into the Chinese market and you can watch that episode right now on our website, Autoline.tv or you can find it on our YouTube channel.

We test drive quite a few new vehicles!  To keep up with the latest cars we have in the Autoline garage, check us out on social media to find out our likes and dislikes. Find us on Twitter by looking for @Autoline or to find us on Instagram and Facebook just search for the Autoline Network.

We provide our insight into the automotive industry, but now it’s time for you to share your opinion. We want to know your thoughts on GM’s attempt to get an exemption from regulators, to allow it to operate a fleet of autonomous vehicles without a steering wheel or pedals. Would NHTSA be nuts to allow this or is it necessary to speed up the development of self-driving cars? If you want to leave a comment, give us a call at 1-620-288-6546 to leave your message, along with your name and where you’re from and we’ll share those in a future show. We can’t wait for your feedback!

2ND LEG OF BUICK REGAL GS ROAD TRIP
Sometimes the greatest things in life happen when you least expect it. We’ve detailed a recent road trip I took and you can find out about the first leg in last Friday’s Autoline Daily. But now on to the second leg. After a very long day of driving we just wanted a place to sleep. After a few failed attempts at hotels that were already full, we tried one last place and this is what we got… the Betty Boop room. I’m going to give you a moment to soak up all its gloriousness… This was in Kingman, Arizona right by the Historic Route 66. In the morning, we ate at a breakfast joint with cinnamon rolls the size of my hand and checked out places with all kinds of motoring-related artwork, including an old VW Bus that had been signed by many who passed by. From here it was only a short trip to Lake Havasu City where we were able to take a few days for R&R. But one of the days we slipped free and made our way south of Phoenix to Maricopa, Arizona and a little place, called the Dwarf Car Museum. It houses the creations of Ernie Adams, a guy who makes miniaturized versions of real cars. And what an amazing guy Ernie is. A true gentleman. He was more than happy to fire his cars up and tell you all about them. He pulled out a chair for us in his shop where he and friend Gene Tweedy are working on their latest creations and we just talked about whatever was on our minds. And I learned the idea of Dwarf Cars had been on Ernie’s mind since he was a little kid. He had once spotted an old refrigerator in a field and thought the curves of the sides and door would make good car body panels. He first made Dwarf Car race cars, which I’m sure you’ve seen tearing up dirt tracks before, but eventually did get 8 or 9 fridges together to make this car. It wasn’t meant to look like any specific vehicle, but Ernie agrees that you can see some old Dodge in there. His other cars are near dead-on replicas. We asked Ernie how he gets them so close to the originals and he sort of nonchalantly says he just measures pictures. Wait, What? Imagine how difficult that must be to measure pictures and still keep the proportions right. Then you add in that everything is all handmade. Each panel started as a flat piece of steel that Ernie hand-rolled and beat out. And then would weld to a bird-cage-like structure that was removed after the entire panel was finished. Every part of bumper and each individual grille piece were hand-pounded over home-made dies. He also makes his own wheels and frames. About the only thing Ernie doesn’t make is the engine and driveline. Those are typically from a late-70’s, or early 80’s Toyota. It’s a very personal experience that we highly recommend. So, why Dwarf Cars and not restore the real thing? We never did ask Ernie, but we get the sense it’s because no one’s done this before.

And a programming note, there won’t be a new Autoline Daily on Monday because we’re taking the day off for the Memorial Day holiday.

But that’s it for today’s show, thanks for watching and we’ll see you again next Tuesday.