AD #3234 – Mexico Ramps Up Fight with U.S.; EV Sales Outperform Total Market; Volkswagen ID BUZZ Reveal Coming Soon

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

MEXICO RAMPS UP FIGHT WITH THE U.S.
Mexico is ramping up its dispute with the United States over the USMCA free trade agreement. Last month, Mexico threatened to sue the U.S. over the Biden Administration’s proposal to give extra incentives to electric vehicles made in America by union labor. Mexico, along with Canada, says it violates the USMCA. And now Mexico says the U.S. is being too strict with auto content rules under the new trade agreement, which raised required regional content to 75% of car’s value or components. Under NAFTA, the requirement was 62.5%. Mexico says the U.S. is not allowing “various methodologies” to calculate content. Mexico has requested a resolution panel to settle the dispute.

EV SALES OUTPERFORM TOTAL MARKET
As we reported earlier in the week, car sales in the U.S. were up 3% in 2021 but sales of electrified vehicles way outperformed the rest of the market. According to Wards Intelligence, automakers sold more than 1.4 million hybrids, plug-in hybrids and battery electrics, up 84% from a year ago. Hybrids accounted for the majority of the volume, with more than 801,000 sold, up 76%. BEV sales hit nearly 435,000 vehicles, a gain of 83%. And close to 174,000 plug-in hybrids were sold in 2021, up 148% from a year ago. Electrified vehicles now account for 9.4% of sales in the U.S. market.

VW TO REVEAL ID BUZZ IN MARCH
Five years ago at the Detroit auto show, Volkswagen unveiled the ID Buzz electric van concept, whose styling is inspired by its iconic microbus. And now it’s about to become reality. VW CEO Herbert Diess tweeted that the automaker will unveil the production version in March. That’s all we know for now but we’re looking forward to its debut.

VOLVO READIES HIGHWAY ASSIST SYSTEM
Volvo is getting ready to come out with its new highway assist system, called Ride Pilot. When the right conditions are met, this system will allow drivers to go hands-free. It doesn’t say outright if it will be able to change lanes but the graphics provided by Volvo show that capability. And with the amount of sensors on this system, you’d hope that would be the case. It has 5 radars, 8 cameras, 16 ultrasonic sensors and 1 Lidar. Volvo plans to first launch the system in California and tests begin there later this year. The first vehicle to get Ride Pilot, which will be available as an add-on subscription, is its upcoming all-electric SUV that was previewed as the Concept Recharge. That vehicle makes its debut later this year.

BMW AIMS TO IMPROVE IN-VEHICLE ENTERTAINMENT
And when these vehicles finally get safe enough that a driver doesn’t have to be ready to take over, I think a lot of people would like to experience BMW’s new Theater Screen. The 31-inch display rotates out from the headliner on two articulated rails at each side of the vehicle. It has 8K resolution, surround sound, 5G connectivity and smart TV capability. Meaning users can stream music, TV or movies from their favorite apps. BMW says it’s developing this system for future models. We’d be a little surprised to see the 31-inch screen, but the rest of the capabilities for sure.

HYUNDAI TEAMS TO MAKE VIRTUAL ASSEMBLY PLANTS
Hyundai’s big announcement for CES is that it wants to link the real and virtual worlds with practically everything it does. And to accelerate its virtual world development, Hyundai is teaming up with Unity, a company that provides real-time 3D content. Part of their partnership will focus on developing a Meta-Factory concept, which is a digital-twin of an actual factory that allows the company to run tests and figure out the best setup for the plant. They’ll also create a 3D virtual platform for sales and marketing purposes, which would include the ability to test and trial new vehicle functions. Unity plans to help Hyundai with autonomous driving simulation as well. The first use of the Meta-Factory will be at a new facility that’s scheduled to be completed by the end of this year.

And if you’d like to see more from CES, check out our coverage on our YouTube channel and website, autoline.tv.

MAGNA HELPING ELECTRIFY PICKUPS & LCV
Electric pickup trucks have been generating a lot of buzz recently and now the supplier Magna is coming out with technology to help automakers electrify trucks and light commercial vehicles. Called EtelligentForce, it’s an electric 4WD powertrain system that maintains a truck’s capabilities without sacrificing payload or towing. It’s capable of towing up to 14,500 pounds and has a total peak power of 430 kW. The big deal with this system is that automaker’s don’t need to make any architectural changes to the vehicle, plus it’s customizable. Magna plans to launch EtelligentForce in North America in 2025.

YOU SAID IT!
I’ve got to admit, I was a little surprised by the responses to our question, do you expect to get around in autonomous shuttles or pods in the future? I expected more answers like Merv Peters who says, “I like driving my car, as opposed to my car driving me. I still never use cruise control, I want to stay engaged as much as possible.” or Francesc Muro, he says, “I am not giving up the emotion and passion of driving. I am not a merchandise to be taken from A to B, but a person who wants to make his own decisions and take the lead.” But a number of people were more like Kevin A, “I could see using a shuttle in any situation where driving is a chore. For me, that would only be in rush hour heavy traffic or long boring extended trips, like a vacation in Florida. The rest of the time I’d rather drive myself.” And Mirco Wilhelm thinks these are the right kind of vehicles for autonomy, “If the vehicle does all the driving, why would passengers need to be crammed into a chassis that resembles a traditional car? Mobility pods make much better use of the vehicle footprint and give more flexibility to address the needs of the passengers.” Even though our comments section is a small sample size, I think varying responses shows mobility pods and shuttles will be a thing, but only in the right environment, like a campus or city center. Thanks for all your feedback.

And that brings us to the end of today’s show and this week. Thanks for joining us.