AD #3605 – VW CEO Warns “The Roof Is On Fire”; Detroit 3 Labor Costs Are The Highest; Ioniq 5 N Offers Blistering Performance

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

DETROIT 3 LABOR COSTS ARE HIGHEST IN THE INDUSTRY
UAW president Shawn Fain is demanding that Detroit automakers give his union members substantial raises, as well as restore cost of living allowances, eliminate 2-tier wages, and add a host of other increases. And while there’s no doubt UAW workers will get raises, GM, Ford and Stellantis are worried that their labor costs, already the highest in the US auto industry, will give their competitors a significant cost advantage. Sources at Ford tell Autoline that its UAW labor costs an average of $64 an hour, or $128,000 a year. That includes wages, all benefits and profit sharing. It estimates that foreign automakers in the US pay an average of $55 an hour, and that Tesla pays an estimated $45-50 an hour. So the Detroit 3 already pay anywhere from 16% to 28% more than their competitors, and they really don’t want to see that gap grow.

VW CEO WARNS “THE ROOF IS ON FIRE”
“The roof is on fire.” That’s what Thomas Schaefer, the CEO of the Volkswagen brand, told top managers at an internal meeting. Wards reports that he wants to cut spending by €10 billion over the next three years, which is a draconian move. VW is spending heavily on EVs but doesn’t have good results to show for it. Its ICE and EV sales in China are weak, and in the second quarter in Europe, Tesla sold 72% more EVs than VW did, according to the website EU-EVs. Just to show you how dire the situation is, VW’s chief financial officer said that this is a “last call” to save the company.

FORD PUSHING C-V2X IN CHINA
VW isn’t the only one struggling in China. Pretty much all the foreign automakers are, except Tesla. Foreign auto missed how quickly the Chinese market would switch to electric cars. And they’ve been slow to add the latest infotainment and safety equipment. Ford, for example, is sinking fast. In 2016, it sold 1.2 million vehicles in China. Last year it only sold 495,000, a drop of 58%. So Ford is counting on C-V2X technology to give it an edge over the competition. C-V2X stands for cellular-vehicle-to-anything communication. It uses 5G connectivity to give drivers info such as traffic light status for better traffic flow. It can also warn them if another car or motorcycle is about to run a red light, or that a pedestrian is about to step into traffic. At the CES show in 2019 Ford said it would equip all its cars in the US with C-V2X by 2022. Obviously, that never happened. But in China Ford is now making it available on almost every model that it sells.

HUMMER EV PICKUP GETS MORE RANGE
GM figured out how to squeeze more range out of the Hummer EV Pickup with the 3X trim. With the available 24-module battery pack, it now gets an estimated 381 miles of range, which is 26 more than before. And the Hummer EV 3X Pickup with the Extreme Off-Road package, now has an estimated 359 miles of range, 30 miles more than before. We should note that these are GM estimates, so the EPA ratings could slightly differ. GM didn’t say how it boosted the range, or if it can offer it to current customers with over the air updates. The Hummer EV 3X pickup starts just under $107,000 and production kicks off later this year.

MACH-E GETS THE OFF-ROAD TREATMENT
The Goodwood Festival is going on right now in England and we’ve got several highlights for today’s show. And I think there’s something interesting about these vehicles. First, they’re all BEVs. And second, they’re not super rare models that you will never see or own. Ford pulled the wraps off its rally-inspired Mustang Mach-E that it’s going to sell in the U.S. and Europe. No details were provided, but it clearly has unique wheels, tires, suspension and styling elements compared to the regular Mach-E. Other info, like range, will come later.

HYUNDAI IONIQ 5 N OFFERS BLISTERING PERFORMANCE
On the other hand, we’re getting most of the key specs for the IONIQ 5 N, Hyundai’s performance electric SUV. It features two electric motors that combine for 448 kW or roughly 600 horsepower. A boost function takes that to 478 kW or about 640 horsepower for a short period. With the boost, the IONIQ 5 N can do 0-100 km/h in 3.4 seconds. Kia’s performance EV, the EV6 GT, which rides on the same platform, has less power at 430 kW or about 575 horsepower, but the 0-100 time is about the same at 3.5 seconds. The similar performance could be because the IONIQ 5 N has a new, bigger battery. It’s 84 kWh compared to the 77.4 kWh pack in the Kia. However, we don’t know anything about its cells or cell chemistry. Other improvements for the Hyundai include additional body welding and adhesives to increase rigidity, reinforced subframes, an electronic limited slip differential, stronger drive axles and a retuned steering system. Hyundai even programmed the EV so it feels like it shifts gears and gave it an active sound system. The idea is drivers will feel more engaged with the car, which it thinks is lacking from performance EVs right now.

POLESTAR UNWRAPS NEW 3 & 5
And our last Goodwood reveals come from Polestar. It has the prototype versions of the Polestar 3 SUV and Polestar 5 sedan that come out next year on display. The 3 features up to 380 kW or 517 horsepower and comes out in the second quarter of next year, while the 5 has up to 650 kW or 884 horsepower, but all Polestar says is that it will come out in 2024.

KIA MAKING INROADS IN INDIA
Kia is growing fast in India. The automaker only entered the market in August 2019 and now it’s celebrating production of its one millionth vehicle, which was a version of Seltos small crossover. That model account accounted for more than half of those million vehicles. Kia also produces the Sonet, a compact crossover, the Carens, another small crossover and the Carnival minivan in India. It plans to introduce more models to the market and says it should hit 10% market share soon.

VW UPDATES ATLAS & ATLAS CROSS IN U.S. MARKET
The Volkswagen Atlas, including the Atlas Cross, is the best-selling model in VW’s U.S. lineup. And they’re getting an update for the 2024 model year. We just got behind the wheel of them which feature a mild styling update, but they still look pretty similar to the outgoing models. The interior gets a more substantial update and is now more upscale in look and feel. Most of the dash buttons and knobs have been eliminated to give it a cleaner look. All models come standard with a digital instrument cluster and a 10.25 infotainment screen that floats on the dash. We were also impressed by how quiet it is. It’s a very smooth and comfortable ride and that’s partly thanks to an all-new engine. Replacing the previous four-cylinder and V6 engines is a new turbocharged 2.0L four-cylinder that’s mated to an 8-speed automatic transmission. The setup produces 269 horsepower and 273 lb-ft of torque, which is 34 more horses and 15 lb-ft over the old four-cylinder. And it’s more torque and about the same horsepower as the V6. We found the engine to be nice and punchy with plenty of power. Fuel economy ranges from 20-23 MPG combined depending on the setup, which is a slight improvement from the previous Atlas. New technology includes VW’s IQ Drive, which is a safety suite of driver assistance features. Demand for the Atlas and Atlas Cross is starting to cool a bit, with sales down less than 1% in the first half of the year. So the new models are hitting the market at a perfect time. It starts just over $39,000 including destination charges, while the Cross Sport starts about a grand less.

But that brings us to the end of this show and this week. Thanks for tuning in and I hope you have a great weekend.