Follow us on social media:
Runtime: 9:52
0:00 Ford’s Chairman Pleads to End Strike
0:47 Suppliers Feeling Strike Impact
1:16 UAW Tells Ford to Pound Sand
1:57 Tesla China Slips to 5th Place
3:11 OEMs Oppose New U.S. CAFE Standards
4:08 Toyota’s Boxy Van Concept
5:07 Volta Trucks Files for Bankruptcy
5:50 Stellantis Buys EREV Platform in China
6:49 Audio Speakers with No Rare Earths
7:54 Li Auto EV Has Wild Form Language
Visit our sponsors to thank them for their support of Autoline Daily: Bridgestone, Intrepid Control Systems and Schaeffler.
This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
BILL FORD PLEADS TO END UAW STRIKE
It’s Day 33 of the UAW strike and yesterday at Ford’s iconic Rouge plant, Bill Ford practically pleaded with the union to bring the strike to an end. Here’s what he had to say:
“We can stop this now. And I call on my great UAW colleagues, some of whom I’ve known for decades, many are close personal friends: we need to come together to bring an end to this acrimonious round of talks.”
Bill Ford went on to warn that the supplier community will start to collapse with an expanded strike.
SUPPLIERS FEELING STRIKE IMPACT
And MEMA, the Motor Equipment Manufacturers Association, which represents the supplier community, says the strike is already hurting the supplier community. 39% of them have laid off line workers, up from 30% last week. Half of the suppliers who haven’t laid off any workers say they will start laying them off in the next two weeks. And 80% of MEMA’s members say they are worried about the financial stability of the suppliers that supply them.
UAW TELLS FORD TO POUND SAND
Even so, the union shows no signs of backing down. Just the opposite. Shawn Fain, the UAW president, immediately shot down Bill Ford’s plea with this post on X. “Bill Ford knows exactly how to settle this strike,” Fain wrote. “Instead of threatening to close the Rouge, he should call up Jim Farley, tell him to stop playing games and get a deal done, or we’ll close the Rouge for him.” The last UAW strike in 2019 against General Motors lasted 40 days. So we think Fain may want to go to at least 41 days, to prove he’s tougher than the last generation of union leadership.
TESLA CHINA SLIPS TO 5TH PLACE
And now we move over to Tesla, where analysts are predicting that 3rd quarter sales and profits will be down. Even so, the damage will likely be limited. Morgan Stanley forecasts that gross profit margins will be 17.5%, down from 18.1%. But in China, Tesla could be facing bigger problems. Car News China reports that last week, BYD, Li Auto, GAC, and Wuling all outsold Tesla with NEVs in China. Now, those are numbers that are based on insurance registrations, and it’s only for one week, and several of those brands sell more than just BEVs. So the numbers could change a lot by the end of the month. But it sure is surprising to see that Tesla has slipped into 5th place for New Energy Vehicles in China.
OEMs OPPOSE U.S. EPA CAFE STANDARDS
The Alliance for Automotive Innovation, a lobbying group in the U.S. that represents most major automakers, is once again criticizing the Biden Administration’s proposal to boost fuel economy standards. NHTSA is proposing to increase requirements 2% per year for passenger cars and 4% per year for trucks and SUVs from 2027 to 2032. This would result in a Corporate Average Fuel Economy or CAFE target of 58 MPG for an automaker’s fleet. The Alliance says this will result in vehicle prices increasing $3,000 on average by 2032 because of fines automakers will receive for not being able to comply. Last month, the Alliance claimed automakers will face more than $14 billion in fines for non-compliance if NHTSA doesn’t revise its proposal.
TOYOTA’S BOXY VAN CONCEPT
Toyota continues to show more future EV concepts that it will display at the Japan Mobility Show at the end of the month. This is the KAYOIBAKO, a boxy little van that shares its name with a special type of shipping container and can be adapted for a number of uses. Toyota shows how it could be used for delivery or as a small shuttle in a commercial setting as well as for private owners to carry all their gear or convert it into a wheelchair accessible van. The interior features two display screens. One thin one mounted up high and near the windshield and another just in front of the rectangular steering wheel. Toyota didn’t provide any details about the powertrain, other than to say it’s a BEV, but did reveal it’s about 4 meters or 13 feet long and only about 1.8 meters or under 6 feet wide. So, it would fit nicely into most tight spaces.
SWEDEN’S VOLTA TRUCKS FILES FOR BANKRUPTCY
Another EV startup is filing for bankruptcy. Last week, it was Chinese EV maker WM Motor and today Volta Trucks is doing the same. The commercial EV startup that was founded in 2019 announced it will file for bankruptcy in Sweden, which is where its headquartered, and it will do the same in the UK where it has other operations. Volta says it had difficulty raising cash after its battery supplier, Proterra, filed for bankruptcy back in August, which reduced Volta’s production targets. But there’s also a lot more competition in or coming to the electric truck segment.
STELLANTIS BUYS EREV PLATFORM IN CHINA
We have more details about a Stellantis partnership with Chinese automaker Leapmotor that we first reported about in late August. CarNewsChina reports that Stellantis is wrapping up its investment to buy a vehicle platform from Leapmotor that supports both BEV and extended-range electric vehicles. Leapmotor has already showed its own model on this platform, an SUV called the C10, but the company always hoped to supply it to other automakers. That now includes Stellantis, but previous reports say VW’s standalone Jetta brand in China is also getting the platform. And as we know the Volkswagen brand signed a deal to get an EV platform from XPeng and Audi is turning to SAIC for an EV platform. So, a number of foreign companies are turning to Chinese automakers to speed up their electric transition.
AUDIO SPEAKERS WITH NO RARE EARTHS
Automakers want to reduce their reliance on rare earth elements because the market is dominated by China and there are environmental concerns over mining them. That’s why a UK based car audio company called Warwick Acoustics has developed speakers that don’t use rare earth elements. While there is a lot of focus on reducing rare earths in EV motors, Warwick says as much as 30% of the rare earth content in a premium EV is actually in the audio system. Instead of a magnet, Warwick’s speaker replaces it with a 1mm thin electrostatic panel, which reduces the weight by 90% compared to a conventional speaker. It also says its panels are made from 100% by mass upcycled and recyclable materials, which makes it even more sustainable. Warwick says it is in the final stages of industrialization for its first customers but it did not say what companies will use it.
LI AUTO EV HAS WILD FORM LANGUAGE
If someone were to design a new-age version of early dust-buster minivans, we think you’d get something like the all-new Li Auto Mega MPV. It’s the company’s first pure BEV and features a roof-mounted Lidar, an 800-volt electronic architecture and a Qilin battery from CATL. And no matter what you think of the looks, Li Auto teases that it will have excellent aerodynamics.
I wanted to let you know that we launched an all-new website at www.Autoline.tv. It’s cleaner, easier to read and search. It’s all part of our effort to help keep you informed on the global automotive industry.
But with that we wrap up today’s show. Thanks for making Autoline a part of your day.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
This is what the auto companies get for kissing Old Joe’s ass on BEVs.
The larger, Toyota BEV van could put a nail in the VW coffin by selling to former MicroBus owners. The 1966 VW MicroBus was 7′ 10.5″ (2.4 m) vs 4 m long and width 5′ 8″ (1.72 m) vs 1.8 m. Not mentioned in the article, the height the VW was 6′ 4″ (1.94 m) tall.
Trim the length and add aerodynamic curves at the corner and voila! The Toyota MicroBus that VW still doesn’t want to make.
Those electrostatic car speakers sound interesting. I’m wondering if they will have separate woofers with magnets somewhere. I have 6 foot tall electrostatic home speakers, and they are not “full range.” They need a subwoofer to get low bass.
What is the cost of the electrostatic car speakers?
A small but great way of stopping the reliance on China.
Good work Warwick Acoustics.👍
The NHTSA and even the manufacturers are not the ones effected by these ridiculous CAFE requirements. As they stated the costs of these fines to the manufacturers will just get passed onto the consumer in the sum of $3000 per vehicle. Where will the 14 billion in fines go? Thats a question that no one seems to include. Meanwhile a Million tires get burned over in Kuwait and we decimate our economy to save a fraction of that pollution.
I wonder how warranty will be handled on these EV’s with purchased platforms. Certainly, the manufacturer will stand behind the overall vehicle but that doesn’t mean these suppliers especially from China will be as prepared and cooperative when it comes to fixing problems. Will the battery, motor and logic be proprietary? Will they have spare parts available? Will the dealership mechanics be trained to service these platforms by the manufacturer or just sent some service manuals? Maybe it will be fine, but I could easily see some finger pointing happening when things don’t work right.
The NHTSA is doing the manufacturers a huge favor, with the truck loophole that allows “trucks” like CR-V, RAV4, Equinox, Renegade, etc. to spew more greenhouse gases than cars. That is part, or maybe most of why you can barely buy cars in the US any more.
It would be easy for manufacturers to improve efficiency, at least marginally, while lowering the cost of vehicles. Get serious about making good “mid-size” pickups, about the size of “full size” ones of as recently as the early 2000s. If the smaller ones were as good as, and had all the options choice of the huge ones, more people would buy them. Maybe the absurd “footprint rule” is still in effect, though, which encourages bigger, and less efficient trucks.
Won’t warranty and liability terms be worked out with the platform suppliers in a similar manner as with other OEM/supplier business?
the Li Auto minivan is the best looking van in China, hands down. Love the association with the old Pontiac and Chevy pointy Lumina vehicles, right on!
I find the large grill designs which dominate in China super cheesy, including the one you reported on from Volvo earlier his week.
Kit the NHTSA isn’t doing the manufacturers any favors. As they stated in reference to today’s segment, those fines and costs will just get passed onto the consumer that’s all of US. Makes no difference to them. They produce what sells and let the finance guys figure out what you’ll pay based on regulations and fines they incur. So sure, they can try and build smaller more efficient vehicles but that doesn’t mean the public wants them. People will buy what they want to a certain point. Once the cost alters those decisions then you’re just forcing a decision. Much like EV’s. The public isn’t currently beating down the door to get an EV. In fact, the Ford lightning EV has dropped a whole shift of production due to slow sales. All while they are increasing plant capacity so they can build more. My guess is Ford knows something we don’t. Like ICE’s are about to get so expensive and or gas that they will push people into EVs. Thats not free market that’s market manipulation. Which is also what government rebates and incentives do. They alter the real demand by making a product attractive that otherwise might not be on its own merits.
If people really wanted EVs, and no doubt Trucks are a hot commodity then the Lightning would be so much in demand they couldn’t make enough. Not the case. So, either the price is too high or it being an EV is deterring the public. I’d say probably both.
Making sedans or station wagons or even minivans can provide a more efficient platform but what good is it if they can’t sell it. Then you’ve spent millions on vehicle development to kill it two years after launch. Americans don’t want cars anymore; they don’t want minivans and they don’t want EVs. Be prepared to see more start-ups go bankrupt and some real tough times in the auto industry as they are forced to make products people don’t want. We will see the SAR drop to record lows and used car prices soar. The Detroit three are going to keep trying the same old formula of making big trucks and SUVs but on an EV platform that’s way too expensive. Then the Chinese will swoop in and offer cheap EVs to place the final nail in the Detroit 3 coffin. Much like the 70-80s with the Japanese they will be slow to react and will be playing catch-up. Maybe they will and maybe they wont.
But regulating a product out of existence is silly and costly to us not to the government or businesses. We will pay the price for this and manufacturers that have the right products will be just fine.
Google must track even my key strokes as this article popped up in my feed 10 minutes after my last post.
https://www.msn.com/en-us/autos/news/uaw-says-ford-f-150-lightning-ev-sales-tanking-we-know-why/ar-AA1imTVl?ocid=hpmsn&cvid=21d7608b63ca428286a8d7a5eeb7d5c1&ei=84
“what good is it if they can’t sell it.”
You can’t sell it if you don’t build it. All of the major manufactures have about 6 SUVs and CUVS, because they are classified as trucks for CAFE. If the car companies had an equivalent choice of cars and station wagons, and kept them up to date, they might sell them. Two of Toyota’s top 5 in sales are cars, two are CUVs, and one is a pickup truck. Two of Honda’s top 3 are cars. Ford sold a lot of Fusions, but instead of doing an overdue redesign, they dropped it. Chevy still has Malibu, but they have dropped the 2.0 turbo and hybrid, leaving a 1.5 turbo/CVT as the only only powertrain. They have also eliminated other choices. No wonder the aging, de-contented car isn’t selling that great.
Are the Lightnings at dealers of the $80K variety, or can you actually buy one for the advertised $50K or a little above?
A powerful, attractive hybrid that can run purely on its battery for all trips bar long-distance jaunts will save a lot of gas. The costs of a 20-40 kWh battery pack should start at $3K and not break $5K. While there are ancillary benefits to downsizing/simplifying the engine, and eliminating the gearbox. It seems like resistance to change.
On the subject of automotive suppliers, many in the lower tier that disappear will likely not be replaced domestically.
Sean Wagner, I’d consider buying a plug-in hybrid, even though I wouldn’t have a place to plug it in half the time, IF it is a PHEV that matches, or nearly matches the mpg of a regular hybrid. A few, like Prius Prime do that, but some, like the Jeep Grand Cherokee and Wrangler 4xe get no better mpg than the regular V6 if not plugged in. The Jeep 4xe is quick, though.
Come to think of it, and I wonder why it hasn’t dawned on me earlier, a battery of 20-40 kWh capacity could be made swappable with less effort than ‘full-size’ packs. (Never mind ‘oversize’.)
Come to think of it, and I wonder why it hasn’t dawned on me earlier, a battery of 20-40 kWh capacity could be made swappable with less effort than ‘full-size’ packs. Never mind ‘oversize’.
Kit, I agree they can’t sell what they don’t make, and it does seem like the Detroit three have basically handed what’s left of the car market over to the competition. Again, the Executives making decisions based on investor returns and their bonus rather than long term market share. Trucks have a huge profit margin. So, it’s like they took the easy way out and figured they can make the most money with the least amount of work. Passenger cars have been on the decline for years and I do believe the traditional sedan is evolving into a higher seated CUV/crossover. They are more comfortable and easier to get in and out of. But they have abandoned the entry level market.
Corporate America changed in the 90s from what I can tell. Decisions are all about increasing profits and that line graph had to always be climbing up. Doesn’t matter that the company made a billion dollars every year they had to see each year be better than the last. Any sign of flat profits meant it was time to lay people off. Who cares that they still made great money, but they didn’t hit their targets. So, employee loyalty went out the window. No longer did people get jobs with a company and stay for 30 years and retire. Soon as there is a slight downturn in the economy people get let go and have to change jobs and they wonder why the stance of the UAW is profits are good and we want our part. Cause they know soon as things are not good there won’t be a slight hesitation to cut their jobs. Same things happened for sedans. They couldn’t give the return they need so cut it. It’s very short-sighted thinking and will hurt the Domestics eventually. They will have the rug pulled out from under them and heads will roll. Just too bad they are not smart enough to see this coming.
To me, a Camry is easier to get in and out of than vehicles either lower, like a Corvette, or substantially higher, like a Highlander. While I have a Highlander because it’s the most efficient vehicle sold that will carry my toys, it surprises me that it is the best selling “mid-size” 3 row crossover. Except for gas mileage, there are much better options for those who actually use the third row.
I don’t follow stock prices much, but I just checked Ford, and it is $12.04, barely above what I sold some for several years ago. Its recent peak was $25 in January, 2022. Does that coincide with some big announcement I don’t remember? Six months later it was below $12.
Kit, my sister bought the Highlander after checking out all the 3 row competition. I think many people in that market, like her, only rarely need the third row so its not a priority. If you have a large family where it is used almost daily, I could see getting something with easier ingress/egress, but larger families seem to be going out of style these days, so most are probably like my sister, only using for occasional shuttles of her child’s friends or out of town guests.