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Runtime: 10:11
0:07 Mercedes Warns of Russian Cyber Attacks
0:45 Europe Faces Ukrainian Wire Harness Shortage
1:32 VW Sees Big Jump in Profits
2:41 Ford Europe & VW Double Down on EVs
4:37 New Tesla Model Y AWD Sets Off Speculation
5:49 SEC Launches Investigation Into ELMS
7:11 BMW Lines Up Partners for L2, L3
7:39 Audi Brings VR Into Its Cars
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
MERCEDES WARNS OF RUSSIAN CYBER ATTACKS
Mercedes-Benz warned investors that Russia could confiscate its assets in the country and even mount cyber attacks against the automaker. Reuters reports that Mercedes has over $2 billion in assets in Russia, mainly a small assembly plant that makes E-class sedans and SUVs. Russia’s ruling political party, called United Russia, is working on legislation that would nationalize the assets from companies that are considered to be from “unfriendly states.” They especially want to go after companies that left Russia because of its invasion of Ukraine.
EUROPE FACES UKRAINIAN WIRE HARNESS SHORTAGE
It turns out that Ukraine is a major source of wiring harnesses for European automakers. And now they’re scrambling to find other sources. But it won’t be easy. Wiring harnesses are extremely complicated. And the average car has 3 miles of wiring. So it could take months to find new sources to make them. BMW and VW have already shut down some production because of this and Mercedes warned it could be next. Things are going from bad to worse for the auto industry. First it was the Covid pandemic. Then the chip shortage. Raw material prices are surging because of Russia’s invasion. And now there’s a scramble to try and find wiring harnesses.
VW SEES BIG JUMP IN PROFITS
Despite all the bad news, the Volkswagen Group posted some pretty good financial numbers for last year. It sold 8.8 million vehicles worldwide which was down more than 4%. Get this, VW sold 600,000 fewer vehicles last year than it did in 2020, and 2.4 million less than in 2019. Even so it generated €250 billion in revenue last year, which was up 12%. And it posted a net profit of €15.4 billion, which was up 75%. Most of that profit came from Audi and Porsche. The VW brand itself only accounted for €4 billion of that profit, or about 26%.
FORD EUROPE & VW DOUBLE DOWN ON EVS
Ford has set a goal to sell more than 2 million EVs globally by 2026 and now is shedding a little more light on its plans for Europe. It announced 7 new BEVs, 3 passenger and 4 commercial vehicles, and that does not include the Mach-E or E-Transit. The Transit Custom and Tourneo Custom will launch next year, followed by the Transit Courier and Tourneo Courier in 2024. Those last two will be made at Ford’s upgraded facility in Romania. An all-electric version of the Puma will also be made there in 2024. As part of its plan, Ford is expanding its partnership with Volkswagen as well. It previously announced a new EV based on VW’s MEB platform. That model, a 5-seat crossover, will be made at Ford’s factory in Germany next year. But it’s also making another model based on MEB, a sports crossover, that will go into production at the same facility in 2024. This current deal between Ford and VW will last for 6 years and in that time frame Ford expects to build 1.2 million vehicles off the MEB platform. It will also be interesting to see how Ford styles the vehicles differently from Volkswagen. And lastly, Ford is forming a battery joint venture with SK On, the battery division of SK Innovation, the same company Ford has a battery deal with in the U.S. They’ll produce NMC or nickel, manganese and cobalt battery cells in Turkey as early as 2025 with annual capacity around 30 to 45 GWh. Assuming an average battery pack size of 75 kWh that would be enough to power up 600,000 vehicles.
TESLA MODEL Y AWD SETS OFF SPECULATION
Is Tesla coming out with a new version of the Model Y? It sure looks that way. Listed on the EPA website is a model, called “AWD,” which it’s never had before. It slots right in between “Long Range AWD” and “Performance AWD.” But what’s interesting about it is that it has significantly less range, 279 miles. That’s 51 miles less than the “Long Range AWD,” which has some speculating that this could have a new LFP or lithium-iron phosphate chemistry or the new 4680 battery cells. But with less range and the exact same efficiency of 28kWh/100 miles as the “Long Range AWD” model we suspect this is a version with a smaller battery pack with the same cells it’s currently using. New vehicle prices keep going up, Tesla raised its just last week, and Tesla may be looking to give customers that want AWD what they want at a lower price.
SEC LAUNCHES INVESTIGATION INTO ELMS
Things for commercial EV startup Electric Last Miles Solutions or ELMS, continue to go from bad to worse. It recently announced it’s laying off nearly a quarter of its workforce, its two co-founders, Jim Taylor and Jason Luo, resigned over questionable stock purchases. And now the company has revealed it’s under investigation by the Securities and Exchange Commission. ELMS says it’s cooperating but it can’t predict the scope, duration or outcome of the investigation. On top of that, it only has enough cash to keep its operations running sometime through July to September and it won’t be able to launch its vehicles without raising more money.
BMW LINES UP PARTNERS FOR L2, L3
BMW, Qualcomm and Arriver Software formed a partnership to develop Level 2 and 3 automated driving technology. It will be a scalable, next-gen version of BMW’s automated driving software stack that’s available in the iX. The technology will be developed in several countries in Europe, China and the U.S. and will be tested at BMW’s Test Center in the Czech Republic.
AUDI BRINGS VR INTO ITS CARS
Back seat passengers in an Audi are about to have a lot more fun. The automaker is bringing virtual reality into the vehicle. Called holoride, the technology was first introduced at CES in 2019 and will be available in Audi’s with an upgraded version of its MIB3 infotainment system. A set of VR glasses is needed to play games or other interactive content, which is able to adapt to the movement of the vehicle. For example, if the car turns right, the spaceship you’re in will fly to the right or if the car accelerates so will the spaceship. Audi is demonstrating the technology to the public at the South by Southwest festival in Austin, Texas that’s currently going on. It will first launch in Germany, the UK and the U.S. starting in June with other markets to follow.
RIGHT TO REPAIR DEBATE
Should independent repair shops have the right to get the data they need to repair your car? Automakers are making it increasingly difficult to get that data, for several reasons. They’re worried about cyber attacks, they don’t want their cars not meeting emission standards, and of course, they want customers to take their cars to dealerships, not independent repair shops. So now there’s legislation working its way through Congress that would force the car companies to make that data available to the independents. They call it the Motor Vehicle Owners’ Right to Repair Act, and that’s the topic for this week’s Autoline After Hours. Gabrielle Hopkinds, from the Auto Care Association will be our guest. So join John and Gary as they tackle the top issues affecting the automotive industry.
And a few quick notes before we go. John will be in the driver’s seat for the next few days as I’m off wheeling around in the Volvo C40 and XC60 Recharge. Make sure to check out our social media for updates on those vehicles and hopefully I’ll be back on Friday with some stories to tell. But that’s a wrap for today.
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Seamus and Sean McElroy cover the latest news in the automotive industry for Autoline Daily.