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Runtime: 10:40
0:00 Toyota 1st with Non-Union Pay Raises
1:33 BMW Thinks New Batteries As Good As Tesla
2:18 BMW Starts Building All-Electric iX2
2:56 Volvo Creates New Division for Charging & Energy Storage
3:59 O.N.E. Starts LFP Production In U.S.
4:32 Tesla’s China Sales Dip Slightly
5:18 Toyota Reveals New Crown Sedan
6:27 Ferrari Orders Booked Through 2025
7:21 Honda Launching Foldable Mini Scooter
8:05 VinFast Considering $20K EV for the U.S.
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TOYOTA 1ST WITH NON-UNION PAY RAISES
We knew this would happen, but we didn’t know it would be so quick. Just a few days after the UAW reached a record deal with the Detroit automakers, Toyota is boosting the wages of its non-union production workers in the U.S. Top wage hourly workers will see a pay boost of a little over 9% to nearly $35 an hour, while skilled trades workers get a $3.70 increase to just over $43 an hour. Toyota also cut the time it takes to reach a top wage from eight years to four years and it boosted paid time off. This move was clearly in response to the UAW’s new pending contracts. Automotive News reports that Toyota typically gives raises twice a year and it had already given its second one, a $0.25 increase in September. So, this third wage hike is unusual and it’s a much bigger increase than the last raise. The UAW has failed spectacularly at trying to organize plants of foreign automakers and Tesla. But with record contracts likely to be signed and new, more aggressive leadership, the UAW may have its best chance ever. That’s why we’re seeing this move from Toyota and other non-union automakers will do the same..
BMW THINKS NEW BATTERIES ARE AS GOOD AS TESLA
BMW is really bullish on its new battery cells that it just started making samples of at the end of last month. The automaker’s head of production no longer thinks it has to catch up to EV leader Tesla, saying “Tesla needs to close the gap with us. In fact, we don’t see a gap to Tesla.” That might be a premature statement since BMW won’t launch its new batteries until 2025, which gives Tesla time to improve. But BMW claims its new 46-series cells are 20% more energy dense than its current batteries and will help its next-generation of EVs, called the Neue Klasse, get about 30% more driving range.
BMW STARTS BUILDING ALL-ELECTRIC iX2
Until those models start hitting the market, BMW keeps expanding its current BEV lineup, like the new iX2 that just started rolling off the assembly line. It comes standard with AWD, over 310 horsepower and a nearly 65 kWh battery pack that provides up to 449 kilometers or 279 miles of range. And actually it’s not just the all-electric version BMW is building at the plant. It’s also making the ICE and plug-in hybrid X2, which required a third shift to be added.
VOLVO CREATES NEW DIVISION FOR CHARGING & ENERGY STORAGE
Volvo is forming a new business unit within the company, called Volvo Cars Energy Solutions. It will handle all charging related services and technologies. That includes helping have solar panels installed; designing, building and selling energy storage systems that can feed your house and your car; developing bi-directional chargers; and then making it all work together. The new Energy Solutions division is starting its first bi-directional charging tests now, but around 2025 the total battery capacity of Volvo’s EV fleet will be around 50 GWh and it wants to be able to tap into that like a mini power grid.
O.N.E. STARTS LFP PRODUCTION
EV battery startup Our Next Energy or ONE announced it kicked off pilot production of LFP or lithium iron phosphate battery cells at its plant in Michigan. The pilot line will be used to validate the batteries, train workers and provide test samples to customers. Next year, a larger LFP line is scheduled to go into production. And by 2027, the plant will have a capacity of 20-GWh a year, which is enough to build the equivalent of 200,000 EVs a year.
TESLA SALES DIP SLIGHTLY IN CHINA
Tesla’s sales in China dipped slightly in October. According to the China Passenger Car Association, sales of the EV maker’s China-made vehicles fell 2.6% to just over 72,000 units compared to September but they were up slightly, just 0.6%, compared to a year ago. Tesla only started delivering the updated version of the Model 3 at the end of October in China, so it wouldn’t be surprising to see its sales improve this month. Meanwhile, its main rival BYD had a great month, delivering more than 301,000 BEVs and PHEVs last month, up 5% from September and 38% compared to a year ago.
TOYOTA REVEALS NEW CROWN SEDAN
Toyota revealed the next variant of its Crown models. As we reported recently, Toyota will have four versions of the Crown. The one it sells now it calls the crossover type. It’s also taking orders for the Crown Sport in Japan, but I believe it will sell this model in North America as well. It just revealed the Crown Sedan and a version called the Crown Estate will come sometime before the end of March of next year. The Crown sedan sits lower to the ground and features a fastback rear end. A horizontal lighting theme is picked up on the front and rear and to me the vertical bars in the grille give it a more premium look. Power will come from either a hybrid or fuel cell setup. The hybrid is a two-motor system paired with a 2.5L engine. The fuel cell is the same 3-tank setup as the Mirai and provides about 820 kilometers or nearly 510 miles of driving range. Toyota is taking orders for the Crown Sedan in Japan right now, but no word on availability for other markets.
FERRARI ORDERS BOOKED THROUGH 2025
The luxury side of the auto industry is going strong. Ferrari posted impressive third quarter earnings. The automaker sold 3,459 vehicles, up 9% compared to last year. That brought in 1.5 billion euros of revenue, a gain of 24%. It posted an adjusted EBIT of 423 million euros, up 42% and an adjusted net profit of 332 million euros, up 46% from a year ago. Thanks to those strong numbers, Ferrari raised its forecast for its full-year earnings. And the company should continue to see success for the foreseeable future. CEO Benedetto Vigna says its orders are at their highest levels ever and that it’s booked solid through 2025.
HONDA LAUNCHING FOLDABLE MINI SCOOTER
No, this isn’t an April Fool’s joke. Honda is launching a compact electric scooter that folds up into what it calls briefcase-sized, but I’d say that’s a pretty darn big briefcase. Anyway, it’s called the Motocompacto and was inspired by the Honda Motocompo scooter from the early 1980s. The new model has a top speed of 15 MPH, a range of 12 miles and it comes standard with a charger that can be stowed on-board. The Motocompacto is available to order online right now through participating Honda and Acura dealers and it has a starting price just under $1,000.
VINFAST CONSIDERING ENTRY-LEVEL EV FOR U.S.
If dealers get their way, a much more affordable EV will be coming to the U.S. EV startup VinFast showed its mini SUV called the VF 3 to dealerships in the U.S. and said that the response was positive. So, it’s considering adding the model to its lineup in the U.S. with a starting price around $20,000. VinFast says “Further details will be announced in due course.”
Hey! Now that the UAW strikes are coming to an end, is it the right time to buy a car? That’s the topic on today’s Autoline After Hours, which goes live at 3PM EST. But that brings us to the end of today’s show. Thanks for tuning in.
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The current 4680 batteries that are being manufactured in Texas have a lower power density than the 18650, 2170 cells used in most Tesla cars. Elon has said that the 4680 batteries going into Cybertruck battery packs will have 10% greater power density than the original 4680 cells. That will have to be verified when the trucks come out.
It looks like the new Toyota Crown is totally different from the one now sold in the US. The new will be RWD, while the current one has a powertrain similar to a RAV4 hybrid, with a transverse engine hybrid system similar to a Camry hybrid, but with mandatory AWD from adding a motor in the back.
Yeah, it’s very unlikely that the new Crown will come to North America. If it did, it would probably be a Lexus. From the description, it won’t be cheap.
That new mini-ute EV from VinFast could be a small volume hit for the brand. It could really help establish the brand here, especially if the quality is much better than their current models. However, even though it could be a hit for them, the sales potential is limited. The buyer for a vehicle like this is also the buyer that will be most charging-challenged. Apartments, high-rises and brownstones are not great places to live with an EV. Charging is hard to come by. And, using public charging all of the time would erase the financial operating expense advantage over an ICE model. Its also not convenient if its your only way to charge. It may find ready buyers in the high school plus crowd in the American suburbs where home charging is possible.
The VinFast might go big as a faster golf cart with AC, for places like The Villages.
5 @O.N.E. STARTS LFP PRODUCTION I just looked up that company. Very interesting. They claim to be a safer battery cell and because of that can pack more densely. And use LFP, which only uses Manganese as a harder-to-get raw material.
6 @3, 4: the VinFast is produced upon request by Lambo to get a cheap EV in the market. The design looks good to me.
Not a glowing first impression for Vinfast first drive.
https://youtu.be/rjee1LdmHbo?si=gAB5KEthoKZdrrHc
The Vinfast looks like a Jeep Renegade. If they actually start around 20K they probably will sell well.
@Lambo that is what I think, too. The looks may appeal to youngsters and the price and running cost may appeal to the parents.
@Lambo the rest of us will have to deal with youngsters on the road with a very quick vehicle like an EV.
@Lambo
It does look like a Jeep Renegade and is a good price. The problem, without driving it, is that it is a 2 door 2 seat vehicle. Remember the Suzuki X90 which was not only a compact 2 door and 2 seat SUV, but was also a convertible and really good off road and targeted at the younger crowd. It did not sell well at all because even young people are looking for reasonable functionality. They have to move stuff between semesters at college, or go to band gigs, or deliver pizzas or be an uber driver after hours and more things that require more practicality then this can offer. All that to say, it would be great for the villages like Kit said. Beyond that I am not sure how wide of an appeal a 2 door 2 seat car is, even at $20K. The same problem plagued the Fiero which was a cheap 2 seat car for commuting. It did not sell well because it was a 2 seat car for commuting only. You couldn’t take a trip in a Fiero as you had no room for anything. You couldn’t go grocery shopping in a Fiero because what little room you had was superheated by the engine and cooked it all before you got home.
Then we have to get into did Vinfast actually make a decent riding and handling car because their first effort was not that stellar.
Don’t forget the Smart ForTwo!
I hope VinFast does sell this in the US. Can’t wait to see the first one with a lift kit and 35″ off-road tires. I don’t think it will qualify for the full EV tax credit because the vehicle and battery won’t be made here. At best, it will qualify for half of the credit. Right now you can buy a Chevy Bolt, get the full tax credit and be out the door for approx $21,000. In some states even less with state incentives. And, you get a back seat, very good range and a useful cargo area. Perfect for pizza delivery.
MERKUR DRIVER, the two door two seaters that do sell are sporty ones, like Corvette, Miata, Porsche 911, Boxster, and Cayman, and a few others. Actually they don’t sell too well, compared to CR-V and RAV4.
As far as taking trips or grocery shopping, Corvettes and Caymans work ok, if you travel fairly lightly. I don’t remember how much frunk space a Fiero has, but it might be about is big as a C8. Yeah, all of those are “specialty” cars, with a limited appeal, even without the highish prices of some of them.
Fiero sold well, for a two seater. They sold over 136,000 the first year, 1984, and more than 90,000 in ’87 model year, after they had the V6. The dropped it too early. It needed power steering, even for those times, and it never got PS except on a few prototypes.
The curvy Crown SUV/CUV in today’s report, doesn’t look as good as the more squared off version in the Crown lineup, IMHO. I t is more stately in appearance and a much more luxurious, premium model.
The BMW batteries sounds good and seems to show at least some legacy OEMs moving closer to challenging the Tesla on range and EV efficiency. When competition is good, the consumer wins!
It is good to see that Volvo is doing more the just EVs. With some OEMs throttling back on some of the BEV forecasts and Volvo ceasing all ICE construction, moving their electrification efforts into other areas outside, but still related to, of the automotive sector, they can protect themselves should EV not take off as quickly as they expect or need them to.
I thought Polestar was the EV division of Volvo. What is the purpose of Polestar if Volvo is going EV too?
It remains to be seen if batteries BMW or Toyota keep talking up actually even make it into production.
Nevertheless, Toyota’s profits of $8.5 billion last quarter are simply impressive. The only manufacturer on track to build 10 million cars in 2023, with Lexus sales heavily skewed towards the US and China.
@KIT
Polestar started off as tuner of Volvo, like AMG and like AMG, was bought and brought in house. With Volvo leadership deciding to go all in on EVs early on, so did Polestar! Unlike AMG, Polestar grow into in own separate “more premium” brand of the already premium Volvo, under the Geely umbrella, just before their it purchased Lotus. It seemed, to me at least, that this development had Polestar and Lotus occupying the the same space price wise, as they pulled from the same corporate parts Ben, though they appear to have different customer bases. Yet, with the Lotus introduction of their EV SUV and sedan, they have raised their power out put and price point concerning their four door passenger vehicles, giving Polestar room between them and Volvo.
Actually, the Fiero did sell pretty well and was doing great until the engine fires gave the car a bad reputation. Plus Toyota had launched the MR2 which gave it some competition. The V6 was introduced in mid-85 and gave it 140hp. Power assisted steering was offered in the last year 88 models. I was working in exhaust at that time, and we had the next gen turbo 4 prototypes that were crazy quick (for the time). In fact, it outperformed the Corvette in 0-60 and the 1/4 mile and with sales dropping GM killed it. They even made a prototype with a turbo 6 and we had trouble keeping it strait on our test track. Slight tap of the gas and that thing would spin like a top.
As for trunk space it was modest but designers made sure you could get two sets of golf clubs in there. It was not large but deep so stuff had to be stacked on top of each other.
@wmd
Thanks for Polestar info.
@Lambo
Thanks for Fiero info. From what I heard, most of the engine fires resulted from blown engines when the “iron duke” ran out of oil and threw a rod through the block, and the oil mist hitting hot exhaust parts caught fire. Was that the case? I know that engine was prone to running out of oil, using more oil than most engines, and holding only 3 quarts, at least in my Citation and Celebrity wagon.
Kit: From my understanding the Iron dukes oil pans were reduced in size, and they only held like 3.5 quarts of oil. So the oil would get really hot and when low on oil it was worse and if any oil had leaked the manifold would ignite it. Plus being mid-engine there seemed to be some with leaking fuel lines or pumps due to the heat and that would cause a fire.
The car had an opportunity to really make a significant impact at GM if they hadn’t done it on the cheap. They built the car from scrouging around the GM parts bin. Pulling suspension parts from the Phoenix. The rear was basically the FWD moved to the rear and still had tie rods attached to steering knuckles that were hard mounted to the cradle. The automatics were just 3 speeds too. If GM had launched it with the 2.8L from the beginning and the 5 speed with a proper suspension and power steering like what they had in 88 it would have done well and for much longer but typical GM tried to launch it on the cheap and in the process killed it’s reputation 2 years in. Was the first mid-engine (cause i think Corvair was considered rear engine). Was the first all plastic body. The iron duke versions got like 38/50 mpg.
Kit you should watch the AAH from yesterday. They speak about why dealerships are reluctant to get onboard with the EV initiative. Huge investment and they dont have consumers demanding EV’s.
I’ll watch the AAH. I often watch it live, but missed it yesterday.
The only Fiero I ever drove was an ’84 with the 4-speed from the Citation. It was kind of fun, even with the crappy powertrain. .
At 1:48, That’s a confusingly-worded quote:
“Tesla needs to close the gap with us. In fact, we don’t see a gap to Tesla.”
(That’s like saying, “Tesla’s behind BMW. What’s more, BMW is running even with Tesla.”)
Better would have been:
“We don’t see a gap to Tesla. In fact, Tesla needs to close the gap with us.”