AD #3636 – Ford to Ax 5 ICE Models; Renault’s Ampere to Do an IPO; Want A $20,000 Used Car? Good Luck

  

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

FORD TO AX 5 ICE MODELS
Ford is taking an ax to 5 ICE models in its lineup as part of its transition to electric. Automotive News reports that the Escape will get dropped in 2025 as will the Edge, And Lincoln Corsair and Aviator. The Transit Connect will get chopped from Ford’s US lineup but will continue in Europe. We suspect that these are also vehicles with low or next to no profit margins. EV transition or not, automakers don’t get rid of models that are highly profitable.  

VINFAST HITS $160 BILLION MARKET CAP
It’s up, it’s down, it’s up again. VinFast’s stock has been on a wild roller coaster ride since its IPO two weeks ago. And right now, it’s rocketing upwards. Shares shot up 30% this morning in early trading, adding $50 billion of market capitalization to the Vietnamese car company. That early morning surge alone was more than GM or Ford are worth. In fact, VinFast now has a $160 billion market cap, making it the third most valuable automaker in the world, only behind Tesla and Toyota, and ahead of Mercedes-Benz and Volkswagen. We think that speculators are driving the stock surge, because it sure isn’t coming from car sales. VinFast says it will sell 50,000 EVs this year, but so far, in the US at least, it only sold 137.   

GM, FORD CUT PICKUP PRODUCTION
There’s a big problem in Pickup Land. Both GM and Ford are cutting pickup truck production this week because of a parts shortage. But neither company will say what those parts are. Ford’s Kansas City plant, which normally runs on three shifts, is only running on one. And GM’s Fort Wayne plant has shut down completely. Production is expected to resume next week, but it seems like more than a coincidence that both companies were affected at the same time with the same kind of product. Sounds to us like the problem is with a supplier they both use.  

EPA HANDS OUT FINES FOR DIESEL EMISSION CHEATING
Gorilla Performance, a tuning shop located in Idaho, is being fined $1 million by the EPA for selling diesel emission defeat devices for trucks. The agency says it sold tens of thousands of the devices which allow owners to bypass emission control components. The EPA also fined another company, Sinister Diesel, $1 million earlier this month for the same thing. The agency estimates 15% of diesel trucks in the U.S. have illegal devices installed to bypass emissions. The emissions they spew – sometimes doing it in massive plumes of black smoke called rolling coal or coal rolling – feature unburned hydrocarbons that are extremely carcinogenic and can embed in your lungs.

WANT A $20,000 USED CAR? GOOD LUCK
It’s getting harder and harder to find an affordable used car in the U.S. According to a study from ISeeCars.com, used cars priced under $20,000, that are 1 to 5 years old, made up nearly half of the market four years ago. Today, they only account for 12%. And the cost for a used car has gone up significantly. In 2019, the average price was just over $23,000, today it’s well over $34,000. Used cars also have more mileage on them. On average, they now have around 63,500 miles, which is 46% higher than in 2019. ISeeCars says that’s because consumers are hanging on to their vehicles longer because they can’t afford to or don’t want to pay higher prices for new or used vehicles.

RENAULT’S AMPERE TO DO AN IPO
Renault is treating its Ampere EV unit as a truly stand-alone business. It will separate it from the ICE part of the company in November and CEO Luca de Meo says Renault is targeting an IPO for Ampere in the spring of 2024. Ford and Toyota have also separated the EV and ICE side of the companies and this makes us wonder if either of them will list it on the stock market like Renault?

CITROEN REVIVES H-VAN CLASSIC
Last week we looked at a couple of new camper vans and here’s another one, but with a lot more style. Citroen is recreating its iconic H Van, which was sold from 1947 until 1981. Here’s a good example that we spotted on a recent trip to New York. The New Type Holiday is based on a current Citroen van, the SpaceTourer, but it features a completely custom body kit to make it look like the classic, which was originally called the Type H. That includes its squared off nose with giant chevrons in the grille, bug-eye headlights, louvered body panels and simple steel wheels. Citroen actually built the van years ago, but it’s keeping it up to date with this new caravaning theme. Plus, it gives us an excuse to show you some cool pictures. 

XPENG FLIES VTOL ACROSS RIVER
Chinese vehicle maker XPeng says it’s the first to fly an eVTOL or electric vertical take-off and landing aircraft across a river in China. CarNewsChina reports that it took its latest-generation eVTOL, called the XPeng X2, 4 minutes to make the 1.5 kilometer or roughly 1 mile journey. That means it only went 15 MPH or about 24 km/h. We’re unsure of the top speed but the X2 is capable of flying for about 25 minutes, so it’s going to be limited to short distances and small loads. The aircraft weighs 680 kilograms or about 1,500 pounds and can carry up to 160 kilograms or 352 pounds. XPeng says deliveries will start in 2025 with an expected starting price in the $100,000-$200,000 range.   

NEW CHINESE EVs ADOPT AMERICAN SUV STYLING
While that’s clearly for a wealthier customer, lower-priced NEVs seem to still be resonating with Chinese buyers as long as they’re new. Even models that are only a few years old, like the Wuling Mini EV, are seeing their sales plateau. That’s one of the reasons we think brands like Geely keep introducing more versions of their affordable cars, like the new Knight version of its Panda EV, which starts around $10,000. It features design elements that give it a more rugged look. In fact, we’re seeing a lot of American SUV styling influence in a number of new Chinese EVs. That includes Chery’s iCar 03, which is expected to launch next month with a starting price around $20,000. It’s a FWD SUV with a 135 kW or 184 horsepower electric motor and an estimated 500 kilometers or 310 miles of range. A 4WD version is said to be coming later as well. iCar is Chery’s new brand aimed at younger buyers and wants to eventually have a 7-car lineup.

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