AD #3737 – GM Brings Back Plug-In Hybrids to U.S.; Musk’s Tesla Pay Package Voided; EV Sales Drop in California

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

MUSK’S TESLA PAY PACKAGE VOIDED BY U.S. JUDGE
Elon Musk’s title as ‘Richest Person in the World’ is at risk. A judge in Delaware voided his $55 billion dollar plus pay package at Tesla. The lawsuit was filed in 2018 by a Tesla shareholder who felt the performance benchmarks Musk had to hit weren’t clear enough and that the board had conflicts of interest in approving it. The stock options he received as part of the pay package are worth about $51 billion right now, which is just under a quarter of his total wealth. Musk can appeal the ruling, so he’ll keep his rich man title for now. But this also comes right at the same time Tesla is said to be preparing new contract negotiations with the CEO, who some feel is still threatening/demanding that he get even more control over the automaker by posting on social media that he’s “uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control.” 

EV SALES DROP IN CALIFORNIA
As we’ve reported, EV demand is slowing and now it’s happening in California too. According to data that Experian collected for the California New Car Dealers Association, registrations for light passenger EVs were just below 90,000 in the fourth quarter of 2023, which is down 10% from the 101,000 registered in the third quarter. And that Q3 figure was down slightly from the second quarter, meaning EV registrations have dropped for two consecutive quarters. While the EV market is still strong in the state, reaching 21% market share in 2023, the drop in sales has to be a bit alarming for automakers, since California is a bellwether for EVs in the U.S.

GM BRINGS BACK PLUG-IN HYBRIDS TO U.S.
We have confirmation of a report from late November that GM was going to bring hybrids back to the U.S. CEO Mary Barra says that GM will specifically turn to plug-in hybrid technology for the North American market. At a time when EV demand has slowed and the automaker has struggled to ramp up production of its Ultium-based EVs, GM will use PHEVs as a way to meet toughening emission standards. Back in November we were told by a source at GM that the hybrids it’s also developing for South America could be brought to the U.S. But should GM have continued to develop the Chevy Volt? I think it’s an interesting question considering what it’s doing now. 

GM NOW OFFERING REMANUFACTURED HEADLAMPS
Speaking of GM, it’s giving customers a cheaper option to replace their headlights. It’s working with a company called Llink Technologies to sell remanufactured headlamp assemblies that it claims cost 40% less than brand-new lights and about 25% cheaper than an aftermarket unit. Llink is also a supplier of interior components, but it came up with a way to reuse up to 90% of an old headlamp. It then rebuilds the light to OEM spec and it comes with a new part number and two-year warranty. They’re currently available for 2016-2019 Silverados and 2018-2020 Equinoxes. But Llink says it wants to work with all the OEMs and has another deal with Stellantis for a remanufactured part.

NISSAN TO OFFER CHEAPER EVs WITH LFP BATTERIES
The EU is worried about cheap Chinese EVs flooding their market and making European brands less competitive. So, maybe they should look at what Nissan is doing. Reports say Nissan is going to install cheaper LFP batteries into EVs that will be sold around 2026 in emerging markets. LFP batteries are about 20-30% less expensive to produce than lithium-ion batteries. They also provide about that much less range than lithium-ion, but LFP could be a way for other automakers to compete with the Chinese.

BMW REVEALS REFRESHED 4 SERIES
BMW introduced refreshed versions of the 4 Series Coupe and Convertible. Both models get updated exterior styling, including new grilles, headlights and taillights. Inside, the vehicles feature new steering wheel designs, new trim elements and the latest generation of its iDrive system. Powering the 4 Series is a 2.0L inline twin-turbo 4-cylinder engine that’s paired with 48V mild-hybrid technology. It produces 255 horsepower and 295 lb-ft of torque. But if you want more power, you can step up to the M version, which is equipped with a 3.0L inline twin-turbo 6-cylinder engine that also features a 48V mild hybrid. That setup cranks out 386 horsepower and 398 lb-ft of torque. The new 4 Series will launch in March with a starting price of $50,700 for the Coupe and $58,700 for the Convertible. The M Version of the Coupe starts at $64,250 while the M Convertible costs $72,250.

TECH STARTUP USES AI & VIDEO TO TRAIN SELF-DRIVING CARS
Tesla’s FSD v12 is getting all kinds of attention because it relies on using video clips to learn how to drive autonomously, instead of using millions of lines of code directing it what to do. So, to help other automakers do the same thing, a South Korean startup called AIMMO is using AI to dive into massive video databases and pull out only the video that engineers need. For example, do you need video of dogs walking along a road to help train your system? Then just buy that video, not the whole database and have to hunt around looking for the clips that you want. The way AIMMO explains it is, “Why buy a whole smorgasbord of food when all you want is the spaghetti?” It’s partnering with BMW and a soon-to-be-announced U.S. OEM, which sounds like GM or Tesla to me. AIMMO claims a large OEM can save 30-40% of the cost of data collection, curation, annotation and evaluation by using its services.

JEEP SHOWS OFF ELECTRIC WAGONEER INTERIOR
Jeep is gearing up for the launch of its first EV for global markets, the Wagoneer S. Earlier this month, it teased the front end of the SUV, which looks similar to the concept it already showed. And now Jeep is giving us a glimpse of the interior. It has an upscale look which the company says will feature premium materials and technology. The Wagoneer S will have 4xe off-road capability, 600 horsepower and move from 0-60 MPH in about 3.5 seconds. It launches in the U.S. this fall, followed by other major markets.

WULING LAUNCHES ELECTRIC COMMERCIAL VAN
Wuling, the same brand that sells the roughly $4,500 MINI EV, is coming out with its first entirely new native platform. It will be used for a commercial van called the Yangguang and features a new liquid cooled battery that’s designed specifically for commercial vehicles. There’s not much else to report on the van now, but we hope to have more soon.

HONDA OFFERS SOFTWARE UPGRADE TO OLD ACCORDS
If you have an Accord from a few years back and are bummed you can’t wirelessly integrate your smartphone with your car, now you can. Honda is offering an upgrade for 2018-2022 Accords to enable wireless Apple CarPlay and Android Auto. The software update has to be installed at a Honda dealer, which costs $112 plus labor. Honda will also install the upgrade on Certified Pre-Owned Accords at no additional charge, to help make those models more attractive to used car buyers. Honda says this is part of its effort to maximize the lifetime value of its vehicles with upgrades and new digital services.

But that’s it for today’s show, thanks for tuning in.