AD #3223 – U.S. Announces EV Charging Network; Toyota Ramps Up Its EV Plans; Harley Taking EV Division Public

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

CANADA WANTS TO SETTLE EV TAX INCENTIVE DISPUTE
As we’ve reported, Canada is opposed to the Biden Administration’s proposal to give an extra $4,500 tax credit to electric vehicles assembled in the U.S. by union labor. Canada says it violates the USMCA, would harm its auto industry and is the equivalent of slapping a 34% tariff on EVs made in Canada. So in response, Canada threatened to impose tariffs on a number of American products last week. But now Canadian Prime Minister Justin Trudeau is proposing to settle the dispute by aligning incentives in the U.S. and Canada, so vehicles in both countries qualify for the credits. There’s no indication yet if the U.S. would accept that but the two sides are continuing to negotiate.

U.S. ANNOUNCES EV CHARGING NETWORK
And speaking of the Biden Administration, yesterday it rolled out plans for a $7.5 billion EV charging network in the U.S. In February, the White House will issue guidance for states and cities to deploy the network and rules for charger standards will come in May of next year. And it will create an advisory committee next year that will get input from local government, industry and advocacy groups. The goal is to install 500,000 chargers across the country, which is seen as necessary to jump start EV sales in the U.S.

TOYOTA RAMPS UP ITS EV PLANS
Looks like Toyota finally gave up and threw in the towel. Instead of putting most of its emphasis on hybrids, now it’s doubling down on battery electrics. This morning CEO Akio Toyoda announced they’re coming out with 30 BEVs by 2030 and expect to sell 3.5 million BEVs a year globally by then, which is up from a previous target of 2 million. Toyota will spend 4 trillion yen to develop these BEVs. That’s about $32 billion, and includes 2 trillion, up from 1.5 trillion in September, for R&D spending on batteries. Akio unveiled a number of electrics including the bZ4X, which the company showed publicly a month ago. Then there’s the BZ Compact SUV, a sleek, couple-like 4-door; the BZ Small Crossover, which is a 4-door coupe for the EU and Japanese markets. He said it would be rated at 125 Wh/km, or 5 miles per kilowatt hour, which is world class efficiency by today’s standards. There’s the BZ sedan that is aimed at first time customers, and the BZ Large SUV, a 3-row sport ute.

Lexus is actually going to lead the EV charge at the company. There’s the RZ CUV which is Lexus’ version of the bZ4X and looks like it could be a replacement for the RX. Then there’s a Lexus sports car, which kind of looks like an electric LFA. It’s said to go from 0-60 in the low 2 seconds, and will deliver 700 kilometers of range possibly with solid state batteries. That’s about 436 miles. Lexus also looks like it will get a version of the electric sedan and Large SUV. It will become a 100% BEV brand in the U.S., EU and China by 2030 with sales of 1 million a year. By 2035 it will be 100% electric, globally. Toyota also has plans for electric versions of what look like the Tundra or Tacoma, FJ Cruiser, CH-R or Corolla Cross, the RAV4, Supra and even small mobility solutions. So why the change of heart from hybrids to BEVs? Toyota says one reason is the Biden Administration’s push for EVs. But maybe more tellingly, it says there’s been a rapid mind-set change by Lexus customers. They want electric cars.

HOW GM PLANS TO DOUBLE REVENUE
As we reported a couple of months ago, Mary Barra says General Motors is going to double its revenue by the end of the decade. Now we’ve got more info on how she wants to do it. Barra says Cruise LLC, which makes autonomous ride hailing cars, will add $50 billion a year in revenue. Data monetization and subscription services through OnStar will add $20 to $25 billion. Brightdrop, the electric commercial van business, will add $10 billion. And GM Defense will add a billion. Put it all together and you’re talking about $86 billion. Those businesses will be growing at 50% a year, compared to GM’s traditional business that grows at about 3% a year. GM’s stock is trading at its highest level in over 10 years and it’s numbers like these that are getting investors interested.

GENESIS REVEALS MORE G90 DETAILS
A few weeks back, Genesis revealed the new exterior styling of the G90. Now, it’s sharing more details about its flagship sedan. It’s powered by a 3.5L turbo gasoline engine that’s mated to an 8-speed automatic transmission. Its fuel economy is 9.3 kilometers per liter or about 22 MPG but Genesis didn’t reveal what test cycle that’s based on. To help improve the ride, it’s equipped with a multi-chamber air suspension system which automatically adjusts air pressure depending on the road conditions. And it also features rear-wheel steering. The interior is very upscale with plenty of luxurious materials throughout. We especially like the leather blade that cuts through the dash and the HVAC controls, which kind of look like an old radio. And thanks to the long-wheel base version, it’s also been designed for people to be chauffeured in. The new G90 first launches in Korea before heading to other markets.

We kind of pride ourselves on showing you technology and topics that you haven’t seen anywhere else. That’s why Autoline After Hours this Thursday will feature this revolutionary engine. It’s extremely compact, very powerful and relatively cheap to manufacture. It’s so intriguing that Chris Theodore, the father of the Ford GT, the Dodge Viper, the Jeep Grand Cherokee and a bunch of other vehicles, joined the company that’s going to manufacture it. So join John and Gary this Thursday to find out more about it.

 

WILD MOTORCYCLE WANTS TO BREAK ELECTRIC SPEED RECORD
A wild new motorcycle is going to attempt to break the land speed record for an electric bike next summer. It doesn’t look all too special from this side view. It’s not till you look at it head on that you see designers from White Motorcycle Concepts bored a hole right through the center section to create a Venturi tunnel, which helps reduce drag. They’re taking things slow in the testing phase with an underpowered 60-volt system that produces 100 kW or 134 horsepower. For the official run, the bike is expected to feature an 800-volt system and they’ll be looking to break 250 MPH or 402 km/h.

 

HARLEY TAKING LIVEWIRE PUBLIC THROUGH SPAC
In other motorcycle news, EV investors aren’t just interested in automotive startups. Harley-Davidson spun off its electric motorcycle division, called LiveWire, earlier this year and now it’s taking the company public through a reverse merger or SPAC. The expected combined value is a little over $1.75 billion and would pump about $545 million in fresh assets into LiveWire, of which Harley still owns a 75% stake. LiveWire says it will use that money to fund its future plans until it’s profitable in 2026. By that time it expects to sell 100,000 electric motorcycles a year, which will bring in $1.8 billion in revenue. In case you were wondering, LiveWire has sold 387 motorcycles this year.

THE RIGHT KIND OF TIRE TREAD FOR SNOW
Winter season is on us and we just did a couple of interviews that help highlight why snow tires are better than all-season tires this time of year and ways to pick out the right set of tires for you. You might think a big set of knobby tires with deep tread is what you want in the snow, but as Daniel Kelly of Bridgestone points out, that’s not necessarily the case.

(Clip from interview with Daniel Kelly of Bridgestone can only be viewed in the video version of today’s show.)

If you’d like to see more you can catch those interviews in the Autoline Exclusives section of our website as well as our YouTube channel.

But that’s it for today, thanks for tuning in.