AD #3603 – Ouch! Audi Could Buy Chinese EV Platform; EV Startup NIO in Deep Trouble; One-Off Ferrari is Stunning

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

OUCH! AUDI TO BUY CHINESE EV PLATFORM
In a sign of just how far the Volkswagen Group has fallen in EV development, reports out of China say Audi is going to buy an EV platform from IM Motors, which is the EV brand of the Shanghai Automotive Industry Company, or SAIC. Even though the Volkswagen Group is spending $86 billion over the next 5 years to develop electric cars, it’s had to delay parts of its all-new dedicated EV platform, called SSP. It sure sounds like Audi decided it doesn’t have the time to wait around. In the first quarter in China it only sold about 3,000 EVs. In the U.S., Audi only sold 4,533 EVs in the second quarter, while BMW sold two and a half times more than that. If Audi does indeed buy a Chinese EV platform, no doubt Audi engineers in Germany will feel like they’ve been slapped in the face.

GIGACASTING THREATEN STEEL, TOOL & DIE INDUSTRIES
Aluminum gigacastings are a threat to the steel industry. That’s according to Japan’s second largest steel producer, a company called JFE. It says that as more automakers use gigacastings, demand for steel will go down. Tesla pioneered the use of big aluminum castings as part of the body structure of a car, which eliminated the need for 140 steel stampings in the Model Y. Toyota and General Motors are also going to use big aluminum castings in upcoming EVs. Harbour Reports also points out that the tool and die industry is under threat from gigacastings since they eliminate so many steel stamping dies.

ARE US EV SALES UP OR DOWN?
Are sales of EVs in the U.S. going up or down? Several news reports this week say automakers are struggling with EV inventory levels that have hit 90 days’ supply. But it seems to vary by automaker and by EV. Sales of the Mustang Mach-E, for example, fell 21% in the second quarter, but sales of the Chevrolet Bolt were up 101%. Audi’s EV sales fell 5.5%, but Mercedes-Benz’s were up more than 600% to 11,927 units. As the chip shortage eases and automakers build more cars, we should expect days’ supply to go up. But if the sales rate doesn’t keep up with the increase in inventory, then we’ll know that automakers are running into problems selling EVs. When we get the sales reports for this month, we’ll have a much clearer view of what’s going on.

EV STARTUP NIO IN DEEP TROUBLE
One thing’s for sure, Chinese EV maker NIO is in deep trouble. It’s the automaker that pioneered battery swapping, not just in China, but also in Europe. NIO is burning through cash, its stock price is down 50% from a year ago, and sales are far behind where the company said they would be. It promised to sell 250,000 cars this year, but through the first half it only sold about 54,500. We seem to be hitting a day of reckoning with EV startups. Just a little over two years ago there was an investment frenzy to get in on the action. Today, every single EV startup is struggling to make cars and make a profit.

FORD OFFICIALLY BANS ANIMAL TESTING
Ford used to use animals in crash testing. And it used them as recently as 2014. Thankfully it’s been years since the practice ended, and now PETA or People for the Ethical Treatment of Animals, says that Ford has finally updated its policy to officially ban the use of animal testing. The Detroit Free Press reports other major automakers like GM and Stellantis have made similar commitments to PETA. We think that virtual simulations have gotten so good that there’s probably little or no need to do animal testing at all.

VW MOVING PASSAT TO MQB EVO PLATFORM
The all-new Passat is going to launch in the first quarter of next year, so it’s entering the final stages of testing right now. It will ride on the updated version of VW’s MQB platform, called MQB evo, which will also be used for the new Tiguan. Under the hood of the new Passat is the option for gas, diesel, mild hybrid or a plug-in hybrid setup, and the range of the PHEV has been increased up to 100 kilometers or 62 miles. Other updates include faster charging, a retuned suspension and a new interior with digital displays.

CATERHAM REVEALS PROJECT V ELECTRIC
In late May, iconic British brand Caterham revealed an all-electric prototype that it will use for EV development. But it also said it would show another fully electric sports car concept “in the coming months.” Well, that time is now. Meet the Project V, a three or four passenger rear-wheel drive coupe that has nearly 270 horsepower and can do 0-100 km/h in 4.5 seconds. A carbon fiber and aluminum chassis and composite body panel help keep the weight shockingly low for an EV at nearly 1,200 kilograms or just over 2,600 pounds. The battery size is roughly 55 kWh and would provide an estimated 250 miles of range. Caterham says Project V has the potential to come out in late 2025 or early 2026 and would be priced around 80,000 pounds, or around $104,000. I don’t know about you, but I look at the Project V and wonder why Lotus’ EV is a 5,000+ pound SUV?

ONE-OFF FERRARI KC23 IS STUNNING
Speaking of iconic sports car brands, Ferrari is showing a one-off car commissioned by a loyal Ferrari owner, called the KC23. Designers started with a 488 GT3 race car and then stretched its sleek new body over the rear-mounted twin-turbo V8. But it’s still set up very much like a race car, which is evident by the splitters, diffusers, huge brakes, roll cage and fighter-jet-style interior. So, it’s not road legal. However, one of the most unique aspects of the car is its active aero. Panels extend out from the body just behind the front tires and doors as well as a large wing at the rear. And this is not a car that will never see the public eye. Ferrari says the owner is keen to share it with the world.

GAMIC AWARDS ON AAH
On Autoline After Hours this Thursday we’re going to show you four of the coolest automotive innovations you’ve never seen before. In fact, you’ve probably never even heard of the companies that came up with them. That’s because they’re all small companies that are trying to break into the automotive industry. And they’re also the winners of this year’s GAMIC awards, the Global Automotive & Mobility Innovation Challenge. GAMIC was founded by a group of retired automotive execs who want to help innovators bring their inventions to the industry. And they chose these four finalists as the best of the best for 2023. So who are the winners, and what did they come up with? Well, you’re going to have to tune in tomorrow when the show goes live.

And that brings us to the end of today’s report, thanks for watching.