Listen to “AD #2968 – Unlikely EV Dominating China; Top Suppliers by Market Cap; GM Signs Fuel Cell Semi Agreement with Nikola” on Spreaker.
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Runtime: 7:31
0:08 Unlikely EV Dominating Chinese Market
0:55 VW Hints at Polo-Sized EV
1:41 Herbert Diess Seeks VW Board’s Vote of Confidence
3:31 GM Signs Fuel Cell Semi Agreement with Nikola
4:29 Top Suppliers by Market Capitalization
5:43 Bentley Introduces Tweed Interior Option
6:28 Opel’s EV Rally Series on Track
6:52 Hyundai Teases New Bayon SUV
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UNLIKELY EV DOMINATING CHINESE MARKET
And we start today in China, where consumers are snapping up one of the unlikeliest EVs in the market. According to LMC Automotive, the Wuling Hongguang Mini EV, sold more than 20,000 units in September, making it the number one EV in China by far. What’s remarkable is, the car is a tiny two-door with a starting price just over $3,600. It also doesn’t qualify for subsidies because of its short range, up to 170 kilometers or 105 miles. EVs must have 300 kilometers or about 186 miles of range to qualify for subsidies in China. But with a price like that, who needs subsidies?
VW HINTS AT POLO-SIZED EV
Now over to Germany, where Volkswagen already launched the ID.3, and is now going to pull forward other EV projects. And it’s moving down market. Reuters reports the automaker will make a small BEV about the size of a Polo that sells between 20,000 and 25,000 euros, which is about $24,000 to $30,000. While this move will plug a gap in the lineup, the shift down market could also be seen as a reaction to possible stricter emission rules that could hurt sales of VWs ICE cars. And don’t forget about VW’s partnership with Ford. We wonder if Ford would also be interested in coming out with a Polo-sized EV as well?
HERBERT DIESS SEEKS VW BOARD’S VOTE OF CONFIDENCE
In other Volkswagen news, CEO Herbert Diess wants to know the company is behind his shift to electrification. So he asked the controlling families on VW’s board to extend his contract as a vote of confidence. But his current contract doesn’t expire until 2023. So, why is he going after an extension now? Here’s our Autoline Insight. European companies are conservative. They are not as flexible and willing to change as American or Chinese companies. Europe has all the talent and technology it needs to compete, but not the right business climate. That’s why Europe doesn’t have any globally dominant tech companies, like Apple, Google, Alibaba or Tencent. And at Volkswagen, Diess has had a hard time to get approval for his revamping of the company into an electric tech company. But an extension could give Diess the confidence needed when there’s pushback from the board. Otherwise, he might just walk away.
GM SIGNS FUEL CELL SEMI AGREEMENT WITH NIKOLA
General Motors signed an agreement to work with Nikola this morning. But it’s a non-binding agreement to sell fuel cells for Nikola’s semis. GM will build the fuel cells to Nikola’s specs and integrate it into Nikola’s semis. But that’s pretty much it. No mention of the Badger pickup truck at all, so that sounds like it’s never going to happen. Remember, Nikola’s founder, Trevor Milton, had built a business plan around fuel cell semis, then unexpectedly announced plans for a pickup when that segment seemed to get red hot after announcements from Tesla, Rivian and Lordstown Motors. Trevor Milton, as you know, got bounced out of the company after accusations of lying to investors. And it looks like the new management team is sticking to the original plan of fuel cell semis. One thing’s for sure. The stock market did not like the news. Nikola stock was down 21% in early trading.
TOP SUPPLIERS BY MARKET CAPITALIZATION
Let’s stick with the stock market for a moment. Whenever you see a list of the top automotive suppliers, they’re always ranked by revenue. The ones that generate the most sales are always at the top. But that doesn’t necessarily capture the value of the company. For example, if you list suppliers by revenue, Magna is the largest in North America, followed by Lear, Adient, Aptiv and BorgWarner. But when you list them by market capitalization, it’s a very different story. Market capitalization is the value the stock market places on a company. It’s calculated by multiplying the total number of shares by how much they’re trading for. And when you do that, Aptiv jumps to the top of the list with a market cap of nearly $33 billion, followed by Magna at about $24 billion. Then comes BorgWarner at $9.6, Lear at $8.8 and Gentex at $8 billion. The real surprises here are Aptiv and Gentex. Why does the market value them so highly? Because It perceives them to be tech companies. And these days the stock market is crazy about tech.
| Top 5 North American Suppliers by Revenue | |
|---|---|
| Magna | $39.4 Billion |
| Lear | $19.8 |
| Adient | $16.5 |
| Aptiv | $14.4 |
| BorgWarner | $10.1 |
| Source: Company reports | |
| Top 5 North American Suppliers by Market Cap | |
| Aptiv | $32.9 Billion |
| Magna | $23.8 |
| BorgWarner | $9.6 |
| Lear | $8.8 |
| Gentex | $8.0 |
| Source: NYSE, NASDAQ | |
BENTLEY INTRODUCES TWEED INTERIOR OPTION
Bentley is known for its high-end vehicles but it’s going back to basics for its latest option. The automaker is now offering tweed door trim options for the Flying Spur, Continental GT and Bentayga. It’s available in four patterns and is part of the company’s effort to use more sustainable materials in its vehicles. Bentley didn’t reveal what the option costs but we like this one with the checker pattern best.
OPEL’S EV RALLY SERIES ON TRACK
Opel’s all-electric rally series just took another step closer to reality. The Corsa-e Rally completed a three-day test last week that covered 1,500 kilometers or 932 miles and simulated two complete rounds of the Germany Rally Championship. The ADAC Opel e-Rally Cup series kicks off next year.
HYUNDAI TEASES NEW BAYON SUV
Hyundai announced it will have a new entry-level SUV that it says is primarily a European product. So, we’re not sure if it will be offered in markets outside that. But it’s called the Bayon and is a B-segment model that will launch in the first half of next year.
Henrik Fisker tried to launch a car company a decade ago but it crashed and burned. But rather than give up and slink away, he’s back. And this time he’s going all electric. But that’s not nearly as interesting as how he plans to develop and build his new cars. What’s that all about? Well join us this Thursday for Autoline After Hours when Henrik will be our guest.
But that’s all we’ve got for today. Thanks for watching and we hope to see you again tomorrow.
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John McElroy is an influential thought leader in the automotive industry. He is a journalist, lecturer, commentator and entrepreneur. He created “Autoline Daily,” the first industry webcast of industry news and analysis.
