AD #3581 – Tesla Model 3 Now Only $32,000; GM AVs Coming To Showrooms; Lexus Baby LBX Debuts

  

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

GM AVs COMING TO SHOWROOMS
Lots of people in the auto industry say that autonomous vehicles are a long way off, but GM CEO Mary Barra is not one of them. Not only does she see a giant growth opportunity for AVs, but she predicts that they’ll be in showrooms by the end of this decade. The company expects to generate $50 billion a year in revenue from GM Cruise, and it has plans to expand into Japan and Dubai.  

NHTSA WANTS AEB MANDATE
As we reported last week, the National Highway Traffic Safety Administration wants to mandate AEB, or automatic emergency braking. While many vehicles already have the technology, NHTSA wants better performance. For example, it wants AEB to work at much higher speeds and at night. That most likely means AEB systems are going to need improvements, like thermal cameras or Lidar, especially to avoid pedestrians when it’s dark outside. NHTSA is collecting input from automakers and others before issuing a final ruling. In addition to avoiding 24,000 injuries a year, NHTSA says this technology could avoid 360 fatalities.

TESLA GROWTH SLOWS IN CHINA
The top selling EV company in China last month was BYD. It sold 110,000 BEVs for the month, followed by GAC Aion, which sold 45,000 BEVs. Tesla came in third place with an estimated 43,000 cars. Tesla delivered 77,695 made in China Model Ys and 3s, up 2.4% from the month before. While the company did not divulge domestic sales or exports, analysts in China believe the other roughly 33,000 units were exported. Tesla has a refreshed version of the Model 3 that should be out later this year under a program codenamed Highland, which should help increase its sales growth.

TESLA MODEL 3 NOW ONLY $32,000
Meanwhile, in the US the Model 3 just got much more affordable. The cheapest version now qualifies for the full $7,500 U.S. federal tax credit. That means it costs just over $32,000 and with state incentives the price can even drop below $30,000. The full credit also applies to Model 3s currently in inventory. Previously, the cheaper version of the Model 3 only qualified for half of the credit because the batteries were made in China. So, it suggests that Tesla is now using cells made in the U.S.

VW ID.BUZZ MAKES U.S. DEBUT
Hey America, the VW Bus is coming back! It revealed the all-electric ID.Buzz that will go on sale in the U.S. and Canada next year. The model is based on the long-wheelbase version of the MEB platform, which means it gets a bigger battery pack, and it also gets the same in-house developed electric motor that’s going into the ID.7 sedan. The battery has 86 kWh of usable space and the same pack in the ID.7 provides an estimated 435 miles or 700 kilometers of range on the WLTP cycle. The motor sends up to 210 kW or 282 horsepower to the rear wheels and there will eventually be an AWD version that makes 330 horsepower. The interior features seating for 6 or 7 passengers with a third row and I think the real story here is the functionality. Both the second and third rows can slide forward and back about 8 inches and have folding seat backs. And the third row can be removed completely as well. While initial reports said Volkswagen would build the ID.Buzz in the U.S., the company confirmed to Autoline that it will only be built in Hanover, Germany. And for it to be considered to be built in the U.S. it would take sales of 100,000+ units and VW just doesn’t think it’s there yet. For that reason, VW also confirmed it won’t be bringing the commercial version of the Buzz to the U.S. because it would get hit with a 25% import tariff, the so-called ‘chicken tax.’ 

FRANCE WANTS ITS OWN IRA
Europe complained about the Inflation Reduction Act being unfair but some countries in the EU are trying to do their own IRA. Reuters reports that France is aggressively pursuing battery companies by offering big incentives. French president Emmanuel Macron helped lure four gigafactories to the country and government officials are also trying to get BYD and Tesla to build battery plants there too. France is trying to catch up to other countries in Europe in battery production. It has 169-GWh of existing or planned capacity, which is well behind Germany at 545-GWh and even less than Hungary which has 215-GWh.

LEXUS BABY LBX DEBUTS 
Lexus revealed that new small crossover, the LBX, it teased a few weeks back. For a quick refresher, it’s based on the Toyota Yaris Cross and will slot below the UX. Styling-wise I think it’s like a baby RX; narrow headlamps, large air curtains down low on the fascia, the grille design is similar and so are the thin rear lights that stretch from one taillamp to the other. The interior is highlighted by dual digital screens and we like how the 12.4-inch center screen is mounted down low, so it seems like the LBX will have good forward visibility. Lexus didn’t detail the powertrain setup but says it will have “An enhanced HEV (hybrid) system using the latest electrification technology.” For reference the Yaris Cross hybrid has a 1.5L 3-cylinder engine and a total system output of 114 horsepower. But we should know more soon. Lexus says the LBX will be introduced to Europe, Japan and other select markets in the 4th quarter of this year.

GM LINES UP MORE BATTERY RAW MATERIALS
Automakers learned the hard way that they need to directly buy raw materials for EV batteries themselves instead of relying on suppliers. They way they can lock in a reliable supply. So GM is expanding a joint venture with chemical company POSCO Future M to increase production of cathode active material and precursor cathode active material in North America. The total investment in the project is expected to exceed $1 billion. GM and POSCO will produce enough material for 360,000 EVs annually and the companies will announce where it will be produced at a later date.

 

MEET JEEP’S NEW DESIGN CHIEFS
The guy that’s pretty much been the face of Jeep design for the last 10+ years is retiring and it’s taking two people to replace him. Mark Allen, the head of Jeep design, is stepping down after more than 30 years with the company. So, Jeep is promoting Vince Galante to VP of exterior design and Ryan Nagode to VP of interior design, both of whom have been with the company since the early 2000’s. Stellantis also appointed Leandro Pinto as VP of global user experience system.

And that brings us to the end of today’s show. We hope to see you right back here again tomorrow.