AD #3479 – Chinese Customers Mad at Tesla; EPA To Tighten ICE PM Regs; Best New Auto Tech at CES

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

CHINESE CUSTOMERS MAD AT TESLA
We start out today in China where foreign automakers are really starting to struggle. As if Tesla didn’t have enough problems on its hands, now customers in China are protesting against the company. Tesla cut prices again last Friday and since September those prices are down anywhere from 13% to 24% depending on the model. And those price cuts set off protests from Tesla owners who bought their cars before the price went down. Hundreds of protesters showed up at dealerships and distribution centers across the country demanding rebates on their cars and even the police showed up to make sure things did not get out of hand. 

GM’S CHINA SALES SLIDE
Meanwhile, GM keeps seeing its sales slide down in China. It sold 2.3 million vehicles in 2022, down from the 2.9 million it sold in 2021. Wuling accounted for most of those sales–with more than 1.2 million vehicles. And that was thanks to the popular Hong Guang MINI EV, which topped 400,000 units. Buick also had a strong year in China, with more than 644,000 vehicles sold. And for those of you who are curious, that’s nearly 8.5 times more vehicles than Buick sold in the U.S. in 2022. Buick sold just over 76,000 vehicles in the American market, which was more than a 40% drop.

ACURA GIVES UP IN CHINA
And Acura just threw in the towel in China. Honda is giving up on its premium brand in China, after 6 years of trying to sell vehicles there. In 2021 Acura only sold 6,554 cars in China and so that’s the end of that.

MERCEDES 1ST W/L3 IN U.S.
Mercedes will be the first automaker to offer a Level 3 autonomous driving system in the U.S. But for now, only in two states. Mercedes got approval in Nevada and expects California to approve the system. The hands-off, eyes-off L3 system only works on highways. And while Mercedes is the first to market with an L3 system in the U.S. we think GM’s Ultra Cruise technology, which is scheduled to launch later this year, may even be a little more capable than the Mercedes system.

WHEN IS AN SUV NOT AN SUV?
The U.S. needs to clear up its rules for vehicle classification. As we reported last week, there’s confusion because some EVs that you would think are SUVs are being classified like a sedan. The reason it’s a big deal is because SUVs have a much higher price threshold than sedans to qualify for the EV tax credits; $80,000 vs. $55,000. And many of those EVs that are classified like a sedan have a starting price too high to qualify. For example, the 5-seat version of the Tesla Model Y is not considered an SUV but the 7-seat Model Y is; the RWD VW ID.4 is not classified as an SUV but the AWD version is and both the Ford Mustang Mach-E and Cadillac Lyriq are classified like sedans. So, GM is now urging the U.S. Treasury to reconsider vehicle classification rules and says it should use criteria and processes similar to the EPA and Energy Department. A Treasury spokesperson said that it used fuel economy standards to come up with the classifications. But again, still a little confusing when plug-in hybrid versions of the BMW X5 and Jeep Wrangler qualify for the full credit even though they clearly lower fuel economy than a full BEV. According to the EPA, “The distinction between car and truck/SUVs is based on regulatory definitions where SUVs that are 4WD or above a 6,000-pound weight threshold are generally regulated as trucks and classified as truck/SUV.”

MACH-E KNOB GETS EXTRA FUNCTIONS
In the switch to big, giant display screens customers made it clear that buttons and knobs are still essential for some tasks. So, Ford is offering an OTA update for the Mach-E that will allow owners to use the volume knob for other functions as well. Just as a fun little side note; when Ford was developing that screen, it used a Keurig cup as a mock up for the volume knob. But with the update when users tap the temp, fan or seat heater they can then make adjustments using the knob. 

EPA TO TIGHTEN ICE PM REGS
The Environmental Protection Agency wants to tighten up fine particle pollution standards in the U.S. for the first time in more than a decade. It will slash the allowable 2.5 PM emissions from 12 micrograms per cubic meter, to 9 or 10 micrograms. The EPA says this will prevent up to 4,200 premature deaths annually and save $43 billion in net health benefits in 2032. We think this could force automakers to install particulate filters on gasoline engines, like they already do in Europe. And it’s going to add another $50 to $100 to the cost of ICE vehicles.

NO YOKE FOR YOU? GET A ROUND WHEEL
You can once again get a round steering wheel on a Tesla Model S or X. For the last two years only Tesla’s yoke steering wheel has been available. But according to the official shop on its website it’s a free option with new purchases or can be retrofitted to existing vehicles with the yoke wheel. Although, it will cost existing owners $700, including installation. 

BEST NEW AUTO TECH AT CES
CES 2023 is over and done with, but every day this week we’re going to highlight one of the new automotive technologies that we saw there. Let’s start with e-Leap Power, the Canadian startup that is going to revolutionize how electric vehicles get charged. It figured out how to get rid of the onboard charger that’s on nearly every EV. Those chargers are about the size of a cigar box, can weigh 50 pounds and cost over $1,000. E-Leap Power figured out how to use the windings in an EV’s traction motor to do the AC to DC conversion. And since the onboard charger is a bottleneck in charging the battery, the battery charges three times faster–even if you’re only using a 110-volt outlet. So, for no extra cost, an automaker can make its EV lighter, free up some room in the car, cut the overall cost, and triple the charging speed. We did an interview with the company’s CEO, Russell Pullan, which has a lot more info about the system. And we’ll provide a link if you’d like to watch.

ROLLS-ROYCE SETS ALL TIME SALES RECORD
While most automakers struggled with shortages of chips and raw materials last year, Rolls Royce rolled on to set an all-time sales record. Here’s what Torsten Muller-Otvos, the CEO of Rolls had to say. 

Officially, Rolls sold 6,021 cars. That was up 8% from the year before. The US is the biggest market for Rolls, followed by China and Europe. 

But that brings us to the end of today’s show. Thanks for tuning in.