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Runtime: 9:46
0:00 Stellantis Only Shipping PHEVs To ZEV States
1:42 Ford Pro on Pace to Double Profits
2:37 Stellantis To Build eVTOLs Next Year
3:58 Nikola Lays Off Employees to Cut Costs
4:43 Faraday Delays Deliveries Again
5:26 Polestar Partners to Create New OS For China
6:19 Renault Unveils New SUV
7:18 Toyota Reveals New TRD Paint Color
7:58 New Acura Integra Type S Starts At $52,000
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STELLANTIS ONLY SHIPPING PHEVs TO ZEV STATES
Stellantis stopped shipping gasoline-only vehicles to its dealers in 14 US states and is sending them plug-in hybrids instead. Those are the states that adopted California’s zero emission vehicle mandate and they account for about a third of new car sales in the US. And remember, it’s the states that are enforcing this mandate, not the federal government. Automotive News reports that Stellantis will still ship gasoline vehicles to dealers in those states, but only if customers order them. The PHEVs Stellantis currently sells in the US right now are the Chrysler Pacifica, the Jeep Wrangler and Grand Cherokee 4xe, the Alfa Romeo Tonale just went on sale, the plug-in Dodge Hornet should be coming soon and we think the Jeep Grand Wagoneer 4xe hits the market next year. Interestingly, five automakers are exempt from the ZEV mandate: Ford, BMW, Honda, VW and Volvo. In 2020, they reached an agreement with the California Air Resources Board to comply with a blend of their national fleet, not just the vehicles they sell in those 14 states. That mandate calls for 35% percent of new light-duty vehicles to be BEVs or PHEVs in 2026, 68% in 2030 and 100% in 2035. So what’s happening with Stellantis right now is likely a preview of what’s to come.
FORD PRO ON PACE TO DOUBLE PROFITS
Last year, Ford Pro, which is the business unit in the company dedicated to commercial vehicles, made an EBIT profit of about $3 billion. This year, it’s expected to double that to nearly $6 billion. One reason Ford Pro is growing so fast is that it now has direct responsibility for all of the company’s Super Duty truck sales as well as the Transit van. And in Europe it also gets the Ranger pickup. Ford Blue, the IC side of the business, actually makes those vehicles, but then sells them to Ford Pro under an arranged transfer price. Ford Pro is also selling services to customers including service analytics, mobile services, and EV charging packages. And sales of those services are growing rapidly.
STELLANTIS TO BUILD eVTOLs NEXT YEAR
Stellantis is lending its automotive manufacturing know-how to a U.S.-based company that wants to build aircraft. Stellantis first invested in Archer Aviation at the beginning of the year, then recently bought more stock in the aircraft company and now it’s providing personnel to help with manufacturing automation and component sourcing. Archer is building an eVTOL manufacturing site in Georgia, which it says is “well under way,” and hopes to be ready for production by the middle of next year. By the way an eVTOL is an Electric Vertical Takeoff and Landing aircraft. Initial production will have a capacity of about 650 eVTOLs a year, but the hope is to expand that to 2,300 a year. And while Stellantis didn’t reveal how much it’s invested in the company, it said it’s helping Archer “avoid hundreds of millions of dollars of spending during the manufacturing ramp up phase.”
NIKOLA LAYS OFF EMPLOYEES TO CUT COSTS
Commercial EV startup, Nikola Motors, is shaking up its operations. The company announced it’s laying off 270 employees in order to cut costs by $50 million annually. More than half of those workers were involved in its European operations and that’s because Nikola says it’s going to concentrate on the North American market instead. It’s also selling off its stake in a joint venture with European commercial truck maker Iveco. Nikola expects that its annual cash burn will drop below $400 million by 2024. And despite the cuts, Nikola says it’s on track to launch its fuel cell powered semi-truck in the third quarter of the year.
FARADAY DELAYS DELIVERIES AGAIN
And speaking of struggling EV startups, Faraday Future announced it’s delaying the delivery of its FF91 vehicle AGAIN from the end of the second quarter to August. And the company will perform a reverse stock split in order to meet Nasdaq requirements. To be honest with you I’m getting a bit tired of reporting on Faraday’s struggles. But the reason it’s doing this is because a company’s stock must remain above $1 to stay on the Nasdaq and Faraday’s fell below that mark. Lordstown Motors also decided to do a reverse stock split because it too fell below a dollar a share.
POLESTAR PARTNERS TO CREATE NEW OS FOR CHINA
Polestar announced it’s forming a joint venture with Chinese technology company Xingji Meizu to create an operating system for its vehicles sold in China. And in your full circle automotive moment of the day; Geely, the parent company of Polestar, also owns Xingji Meizu, which it bought last year. The new operating platform will include in-car apps, streaming services and intelligent vehicle software. And it can be integrated with cell phones, augmented reality devices and apps to create a broader digital ecosystem. Geely says it will equip the operating system in its other brands as well. Polestar says it will continue to use the Android Auto operating system in the rest of the world.
RENAULT UNVEILS NEW SUV
Renault revealed a brand-new SUV, called the Rafale. Its name comes from a Renault-powered airplane of the 1930’s that set a speed record around the time. And Renault calls the new Rafale the flagship of its brand. It’s the first vehicle entirely styled under its new design language that will spread across the lineup. We’d say the interior is rather blocky and is highlighted by two floating digital display screens that are kind of combined into one unit. Other technical highlights include OTA capabilities, a large dimmable glass roof and 4-wheel steering. The standard powertrain is a strong hybrid setup that produces 200 horsepower, but there will also be an AWD hybrid that makes 300 horsepower. That base setup launches in the spring of next year, with the more powerful Rafale to follow after that.
TOYOTA REVEALS NEW TRD PAINT COLOR
Every year since 2015, Toyota’s design team in California has come up with a unique paint color for its TRD Pro models, which currently include the Tundra, Sequoia, Tacoma and 4Runner. And this year’s color looks like a deep orange-ish-red, called Terra. I know it may sound simple to do, but they take picking a paint very seriously. They chat with customers and may fine-tune a color 3 or 4 times before they get it just right. And not only do these special colors become very sought after, they can also retain more value than a similar model.
NEW ACURA INTEGRA TYPE S STARTS AT $52,000
Acura announced pricing for the new Integra Type S which goes on sale today. It starts just under $52,000 including destination charges. The model is the most powerful Integra ever and features a 2.0L turbo that cranks out 320 horsepower and 310 lb-ft of torque. That’s an increase of 120 horses and 118 lb-ft over the base Integra. Better still it can be mated to a 6-speed manual transmission.
But that brings us to the end of today. Thanks for making Autoline a part of your day.
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Seamus and Sean McElroy cover the latest news in the automotive industry for Autoline Daily.