AD #3594 – VW Puts More Pressure on Brands; Toyota Designing for Hardware Updates; LFP Getting Massive Investment

  

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

LOUISIANA SLAMS THE DOOR IN TESLA’S FACE
The state of Louisiana just slammed the door shut in Tesla’s face. Tesla had challenged the state’s ban on direct sales, calling it protectionist and anticompetitive. But the state disagreed and said that the company didn’t provide any evidence “regarding anti-Tesla animus on the part of the Louisiana Legislature.” A federal court agreed with Louisiana. All we can say is that it sure shows how powerful the dealer lobby in Louisiana is.

LFP GETTING MASSIVE U.S. INVESTMENT
All of a sudden, lithium iron phosphate or LFP batteries are getting really popular with automakers. Auto and battery makers have committed to invest $14 billion in producing LFP batteries in the U.S. because they’re cheaper than nickel manganese cobalt batteries and the performance gap between the two chemistries is closing. Plus, all the raw materials can be sourced in North America. But even with the surge in investment, China still produces 90% of the materials and components for LFP batteries.

       

AUTOMAKERS SCRAMBLE TO GET NON-CHINA GRAPHITE
But that’s not the only material the auto industry is trying to lessen its dependence on with China. Reuters reports that automakers are scrambling to lock up graphite supplies outside of China because a shortage is looming. According to Benchmark Mineral Intelligence, China produces 61% of natural graphite globally and 98% of the final processed material. Graphite is used for the anodes in a battery pack and with EV sales expected to triple by 2030, graphite shortages are expected. Each EV uses 50-100 kilograms or 110 to 220 pounds of graphite and by 2030 a shortage of 770,000 metric tons is expected. Benchmark says in order to meet demand, $12 billion in graphite needs to be invested by 2030 and 97 new mines are required by 2035.

FORGET OTA, TOYOTA GOING WITH HARDWARE UPDATES
Toyota isn’t just going to offer customers software updates, it’s also going to do the same with hardware. The company, starting with the new Prius, is designing and developing its new cars so they can be more easily retrofitted with new equipment over time. Even if they weren’t originally purchased with the car, customers can add an Advanced Parking feature, Blind Spot Monitor, Panoramic View, Rear Pedestrian Detection and a steering wheel heater. Toyota is also considering letting customers upgrade their display screens and seats. Those interested can book an appointment on an app and make monthly payments or just buy the upgrades outright. And if someone was to get every one that’s currently offered for the new Prius it would cost them around $4,100. So, Toyota is clearly looking for other ways to generate revenue after a vehicle is sold, not just through OTA updates.

FORD MAKES UPFITTING EASY
Ford is making it a lot easier for upfitters to modify its Super Duty trucks. Its chassis cab models now come standard with an electronic module that allows different components like snow plows and cherry pickers to be controlled from the center screen. The module, which mounts behind the glovebox is usually a $400 option on other models. Using a simple graphic user interface, or GUI, upfitters can program a truck so that when a driver puts a truck into reverse, the snow plow automatically lifts up. Or they set it so a truck with a cherry picker or crane cannot be driven until they’re lowered and locked into place. There are a total of 4 pages of menus on the center screen with 8 buttons per page, so upfitters can add a lot of controls. This also means they don’t have to splice into the wiring harness or drill more holes in the dashboard to add switches. And fleet owners can program one truck, then reflash the module on every truck in their fleet. The next step is to try and do this with OTA updates.

VW AG PUTS PRESSURE ON BRANDS TO PERFORM
The Volkswagen Group is putting a new steering wheel on the company. Instead of boosting sales to drive the company’s growth, now it’s putting value over volume. Oliver Blume, the CEO of VW AG, is giving each and every brand, including Cariad, direct responsibility for financial targets such as profits, net cash flow, and capex intensity. The new 10-point plan calls for revenue growth of 5-7% a year through 2027. And it’s targeting a return on sales of 9-11% by 2030. One of the ways it’s going to get there is by phasing out investment in internal combustion engines in the next few years. VW is going to spend €180 billion over the next 5 years as part of the plant. Part of that will go to an all new EV platform called SSP, that will be used by every brand in the group, as well as for a software defined vehicle for the Audi and VW brand who are working with Cariad to do it. To us, hearing VW say it will no longer chase sales volume is a bit of a shock. To put it another way, VW is surrendering global sales leadership to Toyota.

EPA SETS NEW RENEWABLE FUEL TARGETS
The U.S. EPA just set new targets and standards for cellulosic biofuel, biomass-based diesel, advanced biofuel, which is made from plants and animal waste, and total renewable fuel for 2023 through 2025. The agency is establishing requirements to increase renewable fuel production every year to reduce imported oil by up to 140,000 barrels a day. These low carbon fuels will also reduce greenhouse gasses.

FORD TACKLES PIKE’S PEAK WITH ELECTRIC VAN
Not all vans are for soccer moms. Ford is going to race its all-electric SuperVan up Pikes Peak. A version of this van debuted nearly a year ago at the Goodwood Festival of Speed and put down the 5th fastest time of any vehicle for 2022. So, we expect it to do pretty well on the International Hill Climb. But it had to go through a number of changes to adapt to the new environment, and like most vehicles that go up Pikes Peak, Ford slapped on a bunch of aero bits that add a ton of downforce. It also reduced the number of electric motors from 4 to 3, but it still has 1,400 horsepower, it upgraded the driveshafts, revised the regenerative braking system and added carbon ceramic brakes. And if you’re now excited to see the SuperVan race, the good news is you won’t have to wait long. The Pikes Peak Hill Climb is this Sunday.

OPEL e-EXTREME ROCKS…
Speaking of cool EVs, Opel is holding true to its word that it would build a one-off version of a sweet version of the Rocks Electric that was dreamed up during a design challenge. And just like the concept, the real Rocks e-XTREME is a tricked out buggy that looks like it’s ready to rip up some sand dunes. The Rocks Electric is Opel’s version of the Citroen Ami and like the special buggy version that Citroen created of the Ami, if Opel actually offered the Rocks e-XTREME I bet it would sell out in a few minutes.

…AS ELECTRIC OPEL ASTRA HITS THE MARKET
In another bit of Opel news, it’s launching the all-electric version of the Astra. And since this is a Stellantis brand, which means the Astra shares its platform with many other vehicles, the main power components are the same. It features a 54 kWh battery pack and a 115 kW or 156 horsepower electric motor. With the 5-door version of the Astra, this setup provides up to 418 kilometers or 259 miles of range. Orders are open now and a fully loaded model in Germany can be leased for 399 euros a month.

CARESOFT ON AAH
Be sure to tune in to Autoline After Hours today. We’re going to have the CEO of Caresoft on the show. They do competitive teardowns and what they’ve found about how far ahead Tesla is of the rest of the auto industry will shock you. So join John and Gary when the show goes live at 3 pm eastern time.

But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.