AD #3601 – Stellantis Reveals More EV Platform Details; U.S. Car Sales Strong; Tesla Wants Stricter Vehicle Emissions

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

U.S. CAR SALES STRONGER THAN EXPECTED
Car sales in the American market continue to grow at a rate far stronger than anyone expected. The data analytics company GlobalData says the SAAR or annual selling rate hit 15.8 million vehicles, which was up significantly from the 15 million SAAR in May. In fact, strong car sales now have some economists thinking that the US economy could shrug off fears of a recession.

CAR SALES DROP IN CHINA
Meanwhile, in China, the exact opposite is happening. Car sales actually dropped last month, down nearly 3% to 1.9 million vehicles. But sales of new energy vehicles, including BEVs and PHEVs shot up 25% to a total of 665,000 vehicles, accounting for 35% of the market. If you only look at BEVs, 449,000 were sold, accounting for 23% of total sales.

VW WARNS CHINA EV SEGMENT IS OVERHEATING
Ralf Brandstätter, the CEO of the Volkswagen Group in China warns that the EV segment is overheating. He points out there are over 120 automakers making battery electrics in China and they’re going to launch 150 models this year. He is particularly critical of all the price cutting that’s going on and predicts it’s going to lead to a lot of consolidation of automakers.

VW SLASHES ID.3 PRICE IN CHINA
But at the same time that Brandstatter criticized price cuts, VW slashed the price of the ID.3 in China by more than $3,000 to only $16,600. When it debuted in late 2021 it was priced at $25,000. VW is losing market share in China with both its ICE and EV cars. It only has 2.9% EV market share compared to 28% for BYD and 11% for Tesla.

CADILLAC CUTS LYRIQ PRICE IN CHINA
GM also had to cut the price of the Cadillac Lyriq in China by over $8,300. It now retails for about $52,400. So even though sales of EVs are growing fast, automakers are going to see a lot of pressure on their bottom lines, as they have to cut prices to move the metal.

CAR DEALERS EXPERIMENTING WITH CHATGPT
Car dealers in the U.S. are starting to experiment with ChatGPT to interact with customers. Automotive News reports that some dealers are using the AI program for live chats on websites and handling calls to service departments. The chatbot can also be used to gain customer details, learn vehicle history and schedule appointments. And while there have been some hiccups, the dealers who have used it say it has increased efficiency.

STELLANTIS REVEALS MORE EV PLATFORM DETAILS
Stellantis revealed more details about its STLA Medium platform for electrified vehicles, which will underpin everything from passenger vehicles to SUVs, specifically the C- and D-segments. It calls STLA Medium a “BEV-by-design” platform, which means it was designed for battery power first, but it will also be able to accommodate ICE powertrains. For that reason, it looks like compromises were made with the platform that, to my eye, will lead to inefficiencies. But that can always be made up for with compelling product. The STLA Medium platform uses a 400-volt architecture, offers FWD and AWD, and can fit a battery up to 98 kWh. That pack will provide an estimated 700 kilometers or 435 miles of range on the WLTP cycle, but a standard battery version will also be available with 500 kilometers or 310 miles of range. Stellantis says production starts in Europe later this year and says up to 2 million vehicles can be built on the STLA Medium platform a year.

UAW WANTS TO SOFTEN EMISSION PROPOSAL
The Biden Administration is being pulled in two directions over the EPA’s proposed vehicle emission targets. Earlier this year, the agency revealed a plan to cut emissions by 56% which would result in electric vehicles accounting for an estimated 67% of new car sales by 2032. The Alliance for Automotive Innovation, a lobbying group that represents the auto industry, called the proposal, “neither reasonable or achievable.” And the UAW is also calling on the Biden Administration to soften the rules because current production is weighted towards pickups and SUVs and is worried the targets could hurt domestic production. Last year, nearly 60% of vehicles produced by union members were trucks and SUVs.

TESLA WANTS STRICTER VEHICLE EMISSIONS
But while some want to see the emission rules softened, Tesla wants the Biden Administration to make them stricter. It believes the EPA could end ICE sales by 2030 and that there is a “sound legal basis” for the agency to make its proposal even tougher. It also says the EPA’s cost assumptions for EVs are too high because they don’t account for the “documented and rapid decline of battery cell and pack costs.” Tesla also wants the EPA to end credits for ICE vehicles to meet emission standards.

HONDA FORMS NEW SOFTWARE PARTNERSHIP
Honda thinks it needs to turbocharge its software development, so it’s forming a partnership with a Japanese IT company, SCSK Corporation, to jointly develop a new Operating System for Honda’s next-gen EV architecture, they’re also going to work on EV powertrains, safety, automated driving and in-car entertainment together. By 2030, SCSK wants to devote 1,000 software engineers to working with Honda. Remember, two years ago Honda formed a new business unit devoted to developing software for cars, motorcycles and power products. And last year it formed the Sony Honda Mobility joint venture with Sony to develop imaging, sensing, telecommunication, network and entertainment technologies. All this shows how quickly legacy automakers are scrambling to build up their software capabilities.

VW INVESTS BIG IN SOUTH AMERICA
Volkswagen is investing $1 billion to grow sales in South America. It will introduce 15 new electric and flex-fuel models by 2025 with the ID.4 and ID. Buzz launching in Brazil by the end of the year. It expects good things in Brazil, projecting 40% growth by 2027.

VW REVEALS NEW T-CROSS SUV
And VW also just revealed the new T-Cross small crossover for Europe. Its styling has been updated and it now features LED head and tail lights. The interior also gets an upgraded infotainment system and all versions now come standard with digital screens. The new T-Cross goes on sale in the first quarter of 2024 in Europe but no word on pricing yet.

BMW MOTORRAD LAUNCHES NEW ELECTRIC MOTORCYCLE
BMW Motorrad is launching its new “affordable” small electric motorcycle, called the CE 02. It takes some styling inspiration from its other EV that’s already on sale, the CE 04, which we’ve shown in the past. The 02 comes with either a 4 kW or 5 HP motor or a 11 kW or 15 HP motor. Top speed is 95 km/h or 59 MPH for the more powerful version. It has a nearly 4 kWh battery, which provides up to 90 kilometers or 56 miles of range. And it weighs 132 kilograms or 291 pounds. Pricing for the CE 02 starts around 7,000 euros or about $7,600.

BMW MOTORRAD UNVEILS COOL STEAMPUNK CONCEPT
Speaking of BMW Motorrad, it’s showing off this cool one-off concept, called The Crown. It looks like the kind of motorcycle I’d expect to roll up at a steampunk party and if you’d like to see more we’ll provide a link in the transcript and description box.

Some of the cleverest automotive inventions come from individuals and small companies that most people have never heard of. And that’s what Autoline After Hours will be all about this Thursday. We’re going to show you 4 game changing innovations that took the top spots at this year’s GAMIC awards, the Global Automotive & Mobility Innovation Challenge. So be sure to join John and Gary to learn about these breakthroughs before most car companies have even heard of them.

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