AD #3638 – EVs Help Drive EU Sales; Production Blip Costs Toyota $356 Million; Kia Aggressively Prices EV5 In China

  

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

PRODUCTION BLIP COST TOYOTA $356 MILLION
Toyota is back up and running in Japan after it was forced to suspend production at all of its plants in the country yesterday. At first, it was speculated that the company was hit with a cyber-attack but reports say it was a malfunction that occurred during an update of its parts ordering system. Toyota itself has still not revealed details about what went wrong. Reuters estimates that the company lost production of about 13,500 vehicles which is about $356 million in revenue.

EVs HELP DRIVE EU SALES
Car sales in Europe were up for the 12th consecutive month in July. According to the European Automobile Manufacturers’ Association, automakers sold 1.02 million vehicles last month, up 17% from the year before. Part of the growth was fueled by pure electric vehicles which soared 62% to nearly 150,000 units. The other reason for the growth is inventory levels are improving thanks to chip and other part shortages easing. Through July, automakers have sold 7.6 million vehicles in Europe, up 18% from a year ago but it’s still 22% lower than pre-pandemic levels.

CHINESE OEMs BUYING THEIR OWN CARGO SHIPS
Some European executives are already worried about a rush of Chinese cars and this isn’t going to help ease their minds. Chinese automaker SAIC just revealed its first cargo ship that will start transporting up to 7,600 cars at a time to Europe next year. But it doesn’t stop there. In the next three years SAIC plans to add 12 ships to its fleet with the biggest one being able to carry up to 9,000 cars. Last year SAIC exported over a million vehicles and this year its exports are up even more. And Chinese market leader BYD is also in the market for 8 cargo haulers. So, look out.

KIA AGGRESSIVELY PRICES EV5 IN CHINA
Kia is getting really aggressive with the price for the EV5 in China. The smaller electric crossover will have a starting price around $22,000, which significantly undercuts other similar-sized EVs, like the Tesla Model Y, which currently sits right around $36,000. Foreign automakers, except for Tesla, have been struggling in China, so we’re very interested to see how this model performs. 

AI HANDLES 1 MILLION QUESTIONS A MONTH FOR GM
GM started integrating Google AI into its business over a year ago and now its sharing how that’s been going. Since it debuted in July of 2022, OnStar’s Virtual Interactive Assistant has been powered by Google’s conversational AI technology, which can provide navigation assistance as well as handle non-emergency calls from customers. GM says the virtual assistant is handling 1 million questions a month in the U.S. and Canada and is available in most vehicles equipped with OnStar from 2015 onward. GM is also using Google’s AI technology to deploy chatbots on its websites to answer customer questions. And it says it will integrate the technology into other areas in the future as well.

CITROEN WANTS DIRECT SALES & FIXED PRICING
Citroen has its eye on direct-to-consumer sales with fixed pricing. It announced that it’s chopping the number of trim levels for its lineup from five down to three. So, each model will offer trims called You, Plus and Max, and there will be up to five option packs in each of those levels. By simplifying the range Citroen will be able to reduce manufacturing complexity, improve delivery time and cut costs. To help make the buying process even easier it’s also launching a “fair price” pilot in Belgium, Austria, Luxembourg, the Netherlands, UK and Germany, which is basically a fixed price program. So, buyers will pay the same price if they buy online or through the dealer. And ultimately, online sales are what Citroen is going after. It says that’s what more and more customers want and we wouldn’t be surprised to see Stellantis’ other European brands do the same.

BMW, FORD & GM JOIN NORTH CAROLINA EV CHARGING PROGRAM
BMW, Ford and General Motors are teaming up with electricity provider Duke Energy in North Carolina to try out what we think is an interesting EV charging program. EV owners that sign up for the year-long pilot will be given up to 800 kWh a month to charge their vehicle at a fixed price. Depending on the service area they’ll be charged either $20 or $25 a month, which is dirt cheap, about 2.5-3 cents per kWh. But you also have to agree to let Duke Energy determine when your EV is charged, so it can better support the electrical grid. 800 kWh over a month that has 31 days equals out to be almost 26 kWh a day, which Duke Energy says is more than the average 15 kWh that an EV typically uses in a day. But we want to know what you think. Now that you have the facts, is this a program you’d sign up for?

FORD PRO IMPROVES AC CHARGING UNIT
Speaking of EV charging and Ford, its commercial division, Ford Pro is launching a new generation of its 80-amp AC charging station. The big changes for us are the Series 2 version now comes with a RFID card reader, which allows fleets to only allow their vehicles to use the charger and that also includes non-Ford EVs. And the charger will be able to accept over-the-air updates. One such upgrade could be a Plug&Charge function. Ford Pro didn’t reveal pricing for the new charger, but it looks like the current version sells for about $2,000. The commercial division also revealed that it’s offering new DC fast charger options of 180 kW and 240 kW. 

BLUECRUISE GETS GERMAN APPROVAL
Ford received the go-ahead from German authorities to offer its BlueCruise hands-free driver assistance system to customers in the country. The technology will first be available in the Mustang Mach-E. Germany is the second European market to get BlueCruise, after the UK where it launched in April. BMW and Mercedes also offer hands-free systems in Germany as well.

But that brings us to the end of today’s show. Thanks for tuning in.