Listen to “AD #3557 – BYD Growing Faster Than Tesla; GM Tops In R and D Spending; Stretch Limos Going Extinct” on Spreaker.
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0:00 BYD Growing Faster Than Tesla
1:08 EVs Good for Suppliers, ICE Not
2:32 GM Tops In R&D Spending
3:59 California To Ban ICE Trucks, Diesel Locomotives
5:16 Toyota #1 Trade-In for Used EVs
6:12 GM Adds Vice Admiral to Board
7:25 Stretch Limos Going Extinct
8:09 Toyota 6×6 Fights EV Fires
9:09 Uber Shares Strange Items Left in Its Cars
This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
BYD GROWING FASTER THAN TESLA
This has got to have Tesla looking over its shoulder. BYD’s net profit for the first quarter shot up over 400% compared to a year ago. The Chinese automaker, which already sells the most EVs in China, saw its revenue go up 80%. Specifically, it brought in $17.3 billion in revenue and posted a net profit of $596 million. That’s only a 3% profit margin, but its growth rate is staggering. While Tesla’s sales in China were up 26% in the first three months of the year, BYD’s were up almost 93%, according to Reuters. It sure looks like Tesla needs to refresh its product line and it reportedly has a styling update for the Model Y in a program code named Juniper and one for the Model 3 called Highland.
EVs GOOD FOR SUPPLIERS, ICE NOT
Automotive suppliers that make EV components will see their business boom, while the ones that make ICE components will see their business drop significantly. That’s according to Deloitte’s Automotive Supplier Study. It says revenue from electric drivetrains and battery and fuel cells is expected to skyrocket 245% between 2022 and 2027, to a combined market size of $200 billion globally. At the same time, revenue from ICE components is expected to decline 44% to $70 billion. But Deloitte does say it will remain a viable market for the foreseeable future. ADAS, interiors and electronics are also poised for growth. Deloitte says that competition among suppliers will be more intense as automakers shift to more standardized, less complicated vehicle architectures. Due to rising geo-political uncertainty and government incentives, more suppliers will near-shore their supply chains as well. And it also says we’ll see more consolidation because some suppliers will be unable to invest and grow due to industry challenges and rising inflation.
GM TOPS IN R&D SPENDING
Companies like Tesla and Honda used to devote more of their resources to R&D than other automakers. Not anymore. Today, General Motors spends a higher percentage of its revenue on research and development than any other automaker. Mercedes-Benz and the Volkswagen Group are in 2nd and 3rd, while Honda is now in 5th place and Tesla is in 8th. John has a video that dives into all the details on our YouTube channel if you’d like to check that out. But here’s one thing we can tell you that’s always been true in the auto industry, while some automakers get more bang for their buck than others, the ones that spend more on R&D usually come out ahead. And it will be fascinating to see if that trend continues.
|COMPANY||REVENUE||R&D||R&D % SALES|
|General Motors||$ 156,735,000,000||$ 9,800,000,000||6.25%|
|Mercedes-Benz||$ 165,408,744,200||$ 9,372,100,000||5.67%|
|Volkswagen||$ 307,881,203,200||$ 15,799,160,000||5.13%|
|Ford||$ 158,057,000,000||$ 7,800,000,000||4.93%|
|Honda||$ 128,857,500,000||$ 6,274,800,000||4.87%|
|BMW||$ 157,241,786,000||$ 7,303,622,400||4.64%|
|Renault||$ 51,150,716,600||$ 2,343,025,000||4.58%|
|Tesla||$ 81,460,000,000||$ 3,075,000,000||3.77%|
|Toyota||$ 296,511,192,000||$ 8,964,000,000||3.02%|
|Stellantis||$ 198,018,139,200||$ 5,733,520,000||2.90%|
|Nissan||$ 81,423,000,000||$ 2,343,025,000||2.88%|
|Hyundai||$ 142,527,535,000||$ 2,491,090,000||1.75%|
CALIFORNIA TO BAN ICE TRUCKS, DIESEL LOCOMOTIVES
New safety and emission rules and regulations for heavy-duty trucks have always been behind those for passenger vehicles, but California is throwing that notion out of the window. It’s going to ban new ICE cars by 2035 and new ICE trucks will only be a year later in 2036. There will be a phase-in period and there are a few exceptions. Vehicles like garbage trucks and buses and the utilities will have until 2040 to fully convert fleets and drayage trucks that carry goods from ports to warehouses have until 2042. But public agencies, not including emergency vehicles, will have to purchase 50% zero emission vehicles by the end of next year and fully convert by 2027. The California Air Resources Board also approved a new rule that goes after train emissions. By 2030, engines over 23 years old will be banned, locomotives with an automatic shutoff won’t be allowed to idle for more than 30 minutes and it will enact standards to reduce smog producing chemicals.
TOYOTA #1 TRADE-IN FOR USED EVs
More Toyota owners are trading in their vehicles for a used EV in the U.S. According to CarMax, which looked at data between September of last year to the end of February this year, 12% of vehicles traded in for used EVs were Toyotas, the second straight year it is number one. Ford and BMW were next at 8%, followed by Honda and Chevy at 7%. The Tesla Model 3 is the most popular used EV and the most common trade-in for it is the Honda Civic followed by the Toyota Tacoma. The Nissan Leaf is the third most popular EV at CarMax and the most common trade-in for it is the Toyota Prius. As for types of vehicles, SUVs were the most traded-in vehicle for used EVs at 40%.
GM ADDS VICE ADMIRAL TO BOARD
General Motors is adding another woman to its board of directors. The company is nominating retired Vice Admiral Jan Tighe to its board. She worked in the U.S. Navy and the National Security Agency as a cryptologist. GM currently has 13 board members, 6 of which are women. But Carol Stephenson is leaving the board this year. So the company will still have 6 if Vice Admiral Tighe is elected at the company’s shareholder meeting in June. GM is the only automaker in the world with that many women on its board.
STRETCH LIMOS GOING EXTINCT
You used to see them everywhere. Stretch limos that is. Long, white stretch versions of Lincoln Town Cars, Cadillac DeVilles and even Hummers were all the rage for bachelorette parties, weddings, proms, birthday parties–you name it. They were the go-to cars for people who wanted to arrive at an event with a conspicuous splash. But that was then. About a decade ago the stretch limo business died, but the limo business did not. Today, people want to be a lot more discreet and the go-to limo is more likely to be a black Mercedes Sprinter van, a black Cadillac Escalade or even a black Lexus LS sedan.
TOYOTA 6X6 FIGHTS EV FIRES
From accidents to fires, EVs can’t be handled in the same way that ICE vehicles can in an emergency. That’s why UK-based upfitter Prospeed Motorsport developed a fire truck especially for EVs. It based it off a Toyota Hilux on a custom frame because it’s smaller and can fit into tighter spaces since EVs are more likely to catch on fire in a parking structure or underground garage. Prospeed also equipped it with a second rear axle, which increased payload to 6,600 pounds, and then upfitted the rear with a bunch of firefighting equipment. That includes a high-pressure cutting wand that can slice right through to the battery and allow a second person with a water hose to pump the pack full of water. It claims it can put out an EV fire in 10 minutes and use less than 200 gallons of water in total.
UBER SHARES STRANGE ITEMS LEFT IN ITS CARS
I don’t know about you but I leave stuff in my car all the time. But what do you do if it isn’t your car? Uber released its annual lost and found index. And the top left behind items are things you’d expect, like phones, wallets and keys. But there’s also some truly unique ones as well. Here’s some of our favorites, as described by the customer; some tater tots, breast pump and a white cowboy hat, my grandma’s teeth and a shitty painting of a moose. There’s 50 items in all and there’s plenty of other head scratchers in there, plus a number of other lost items trends that we think you might enjoy, so we’ll provide a link in the description box or transcript if you’d like to check that out.
But that’s all we’ve got for this Monday. Hope to see you again tomorrow.
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Seamus and Sean McElroy cover the latest news in the automotive industry for Autoline Daily.