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Runtime: 9:48
0:00 Musk Threatens to Reincorporate Tesla in Texas
1:01 January Car Sales in China Can Be Misleading
2:04 EVs Blamed for Guardrail Problems
3:08 Polestar in Full-Blown Crisis
4:33 F1 Rejects Andretti
5:36 Lewis Hamilton to Ferrari?
5:57 BMW Partners with Dassault for Digital Twins
6:30 Ford Reduces Explorer Build Complexity by 90%
8:19 Ford to Hand Out Free NACS Adapters
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
MUSK THREATENS TO RE-INCORPORATE TESLA IN TEXAS
As we reported yesterday, a judge in Delaware told Elon Musk he can’t have that $55 billion pay package at Tesla. Not surprisingly, Elon isn’t happy. He says that “Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas” from Delaware. Elon even held a poll on Twitter asking his followers if Tesla should incorporate in Texas and unsurprisingly they overwhelmingly voted in favor of it. The Delaware judge ruled in favor of a lawsuit filed by a Tesla shareholder that claimed the company misled investors about its compensation plan for Musk. Tesla can restructure the pay plan and present it to shareholders for a vote. But Musk wants to avoid that by reincorporating in Texas instead.
JANUARY CAR SALES IN CHINA ARE MISLEADING
If you’re seeing headlines that Chinese car sales are way up, don’t believe them. Automakers are posting their sales for January and the growth rate looks astonishing. BYD was up 33% compared to a year ago. NIO was up 18%, XPeng was up 58%, Li Auto up 105% and Zeekr up 302%. But that was compared to a year ago, when the Chinese New Year fell in January, and the country essentially takes a two week vacation. So when you look at month over month sales, instead of year over year, the story changes significantly. BYD’s sales were down 40%, XPeng was down 58%, Li Auto was down 38% and Zeekr fell 6%. It looks like we’re going to have to wait until the end of February to get a clearer picture of what’s really going on in the Chinese market, because comparing this January to last January can be really misleading.
EVs BLAMED FOR GUARDRAIL PROBLEMS
EVs typically weigh 20-50% more than gas-powered vehicles and that’s becoming a growing concern of safety advocates. Last year, the National Transportation Safety Board issued a warning about the safety risks if an EV crashes with a lighter vehicle. And now a new study from the University of Nebraska is getting a lot of headlines because it says EVs can easily crash through highway guardrails because of their heavier weight. Guardrails have a capacity of 5,000 pounds. Researchers crashed a nearly 4-ton Rivian R1T truck into a guardrail, which it easily tore through and didn’t slow down until it hit a concrete barrier several yards away. And while most reports are focusing on EVs, the study points out that most full-size pickups and SUVs also exceed the 5,000-pound capacity. The researchers say more testing needs to be done in order to create barriers that can minimize crashes for both light and heavier vehicles.
POLESTAR IN FULL-BLOWN CRISIS
Polestar looks like it’s in a full-blown crisis. It’s no longer going to be part of Volvo and will be absorbed into Geely instead. Like most EV companies, Polestar’s stock has taken a beating, down 83% last year. And its sales have fallen short of what it promised. Last year it delivered 54,600 cars worldwide and only 9,772 in the US market. For the segment it serves, that’s not nearly enough to be a viable business. Worse, it needs $1.3 billion to keep the lights on until 2025 when it expects to become cash flow positive. That was too much money for Volvo to hand over, which is why Polestar will transfer to Geely’s control. Even though Geely promises to keep Polestar as an independent brand, we wonder if that’s realistic. Remember, Polestar started out as a Swedish racing team. Then it became the performance brand for Volvo. And then it was spun off as a separate company as an all-EV brand.
F1 REJECTS ANDRETTI
Formula 1 fans hoping to see a US team added to the grid are disappointed today. Despite the growing popularity of F1 in the U.S. and getting the thumbs up from the FIA last October, American racing team Andretti Autosport, which led by racing icon Michael Andretti, had its bid to join Formula 1 in 2025 rejected by the sport’s owner and commercial rights holder Liberty Media. It said it didn’t think the Andretti team would be competitive and therefore wouldn’t add any value to the sport. There’s still a possibility of Andretti making its way into F1, but not until 2028. Liberty says it would look differently on its application if Andretti is using a GM power unit. Cadillac has always been on board as a sponsor for Andretti and announced in November that it had formally registered with the FIA as a Formula 1 power unit manufacturer starting for the 2028 season.
HAMILTON TO FERRARI?
Speaking of F1, reports say the winningest driver in the racing series’ history is leaving for the most iconic team in the sport. Lewis Hamilton is said to be joining Ferrari in 2025. He’ll replace Carlos Sainz to race alongside Charles Leclerc. An official announcement could come as early as this week.
BMW PARTNERS WITH DASSAULT FOR DIGITAL TWINS
BMW is getting new technology that will help it develop cars faster. It partnered with Dassault Systems to integrate its 3DEXPERIENCE tech into the automaker’s future engineering platform that will be used by all the engineering groups within the company. More than 17,000 employees will be able to work with a virtual twin of a vehicle so they can make changes or get approvals in real time anywhere around the world. The platform can also be expanded into other areas like modeling and simulation.
FORD EXPLORER GETS 90% REDUCTION IN BUILD COMPLEXITY
Here’s something we’re probably going to see a lot more of. Ford did a mild refresh of the Explorer, all with the idea of keeping sales steady, but also making the vehicle more profitable. The styling changes are fairly subtle. The front end features a new grille design with pronounced air intakes at the corners of the bumper. The taillights are sleeker and seem to carry across into the tailgate. Inside, a bigger 13.2” screen sits in an instrument panel that’s been made to look softer and warmer. There’s also a sound bar that sits on top of the IP, just like in the Mustang Mach-E. With such subtle changes, Ford is really emphasizing improvements in connectivity and infotainment. Alexa is built-in for voice control of many functions. And when it’s parked, you can watch YouTube or Prime Video. Interestingly, Ford is dropping the hybrid version, because fewer than 5% of customers ordered it. However, the Police Interceptor version will still offer the hybrid setup. Engine choices include a 2.3 liter four or a 3-liter V6. And for the first time, Blue Cruise is available on the top two trim lines for hands free driving. Speaking of which, Ford cut the number of trim lines from 8 to 4. It also made a number of features standard, like heated seats, adaptive cruise control and a towing package. By simplifying the line-up, Ford reduced the build complexity by 90%, which is going to take out significant cost. And that’s a formula we’re going to see a lot more of: do a mild refresh, take out build complexity, and make the vehicle more profitable to offset that UAW contract and losses on the EV side of the business.
FORD TO HAND OUT FREE NACS ADAPTORS
And speaking of Ford, it’s giving out free Tesla charging adapters. CEO Jim Farley posted on social media that eligible owners in the U.S. and Canada will soon be able reserve a complimentary adapter, which will give them access to V3 Superchargers and above. Ford says it will actually start building its EVs with the Tesla NACS charging port in 2025.
INSIDE THE MID-SIZE PICKUP WAR WITH TOYOTA’S SHELDON BROWN
Toyota dominates the mid-size pickup segment with the Tacoma. It outsells the Chevy Colorado, Ford Ranger, Nissan Frontier, Honda Ridgeline and GMC Canyon put together. What’s the secret to its success? Well, we want to know too. That’s why we’ve got Shelden Brown, the chief engineer on the Tacoma coming on Autoline After Hours today. He just finished doing a complete redesign of the Tacoma and that truck is bristling with new ideas and innovations. So we invite you to join John and Gary for a deep dive into the mid-size pickup wars, along with Richard Truett from Automotive News when the show goes live at 3 pm eastern time.
But that brings us to the end of today’s show. Thanks for tuning in.
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An BEV weighs similar to a fully loaded ICE vehicle equivalent. So if an ICE is safe for guardrails so is a BEV. Pure hogwash on the anti-EV crowd.
The higher weight of EVs is a fact, when comparing similar types of EV models to ICE models. However, the test shown in the video is ridiculous. I can’t remember the last time I saw a vehicle hit a guardrail head-on. My impression is that that is not what they were designed to do. It seems obvious that they are designed to help keep a vehicle from going off the road when it loses control. In other words, it “guards” against a vehicle going over an embankment or other such vehicular mayhem. They are meant to work with a vehicle traveling in a parallel direction to the guardrail. I would think a Toyota Corolla would smash through the guardrail if it was involved in this same test. Not a very realistic representation of what guardrails are used for. I have to throw the BS flag on this University of Nebraska study. Perhaps they are trying to throw shade on EVs in the hopes that the industry will pivot to E85, raising corn prices in the process and bolstering the economic fortunes of the state. Conspiracy theory anyone?
Here is a link to a brief four-page primer on highway guard rails from the Federal Highway Administration. The Nebraska test falls outside of the mission of the guard rails as approved by this government agency.
https://www.fhwa.dot.gov/guardrailsafety/guardrail101.pdf
GM veteran,
The head on test is kind of ridiculous, although I have seen it in the real world. I always think, what were they doing? In the link to the article though, the video shows a typical glancing blow to the guardrail. The R1T went straight through it like it was not even there. Mainly because the R1T is 8,500 pounds which is the same weight as a day cab semi tractor. I am certain if one of those hit the rail it too would rip right through it. I wonder though how the cable systems would have faired as they are more about energy dissipation than trying to keep the car on the road. Either way, that is a lot of mass to try and contain regardless of direction of impact.
Pretty weak reason, in my opinion, on F1’s decision to exclude Andretti from having a team. With the ‘also’ rans already fielding teams, Haas still not up to snuff, I don’t see why Andretti shouldn’t be given a shot at the ‘show’. They would bring in some fresh ideas, identify with an established engine maker (until GM delivers on their promise of a dedicated power supply) and still be within the F1 limit of 12 teams (them making the 11’th); just thinking there are some shenanigans going on that aren’t apparent or disclosed.
I read where all exiting teams did not want Andretti to join. Keep it an old boy’s club. That’s disappointing.
I agree with others that the guard rail “test” was absurd. The R1T weighs ~7000 pounds, not 8500, at least empty, but doesn’t doesn’t matter in this case.
From some of what I’d read, the existing F1 teams didn’t want the payout diluted by having an 11th team. Whatever the reason, it’s BS. The addition of an Andretti team would create more interest in F1, not only in North America, but elsewhere. As Chuck said, there are some pretty weak teams, like Haas and Sauber/Alfa Romeo. Andretti might have done as well as those within a year or two.
If Hamilton goes to Ferrari, I wonder if he is expecting them to have a better car than Mercedes in two years, or if he just wants a “change” for his last year or two before retiring from F1. When he announced that he was going from McLaren to Mercedes, I was skeptical about his doing the right thing, but it turned out that either he knew some things, or was lucky, as that was the beginning of years of dominance by Mercedes F1.
Is Elon losing it more and more frequently? This doesn’t reflect well on Tesla’s reputation as customers decide not to support a CEO with temper tantrum problems. From what I have read, the court judgement was well thought out and reasonable. Not what Elon wanted but not winnable on appeal, I think.
I like to watch top drivers switch. It’s no accident they almost always end up with a better ride.
I doubt there’s a conspiracy going on with guard rails. After all, Nebraska is a hotbed of EVs and they don’t grow corn for ethanol nor have an oil and gas industry.. This is an unbiased study.
F1 rejecting Andretti is laughable given the reasons they stated..Alfa Romeo/Sauber/ has finished in the bottom half of the constructors championship 12 straight years ,Alpine/Renault/Lotus has been down there 6 of 12. Haas 7 of 8 , Alpha Tauri / Torro Rosso 12 for 12 , Williams 7 of 12 , Aston Martin/ Force India 7 of 12, Even Mclaren 4 of 12. So I don’t see how their argument holds water. Personally I think they want Cadillac without Andretti. I hope that GM stays true to their No Andretti no Fi for Caddy. Does F1 REALLY want more US viewers ? Because Andretti would definitely draw more eyes than Haas does .
Hamilton jumping ship doesn’t surprise me He always ran from teams when they started on the down turn. He has never really had to develop a team from scratch . He stepped into McLaren at the top of their game . Then ran to Mercedes on their way up. Benefitted from having the best car on the grid . Once Rosberg retired his teammates have been made to play 2nd fiddle. Now that Russell is pushing him he wants out. Well of late Ferrari has been where careers go to die. Kimi ,Vettel , and the current drivers haven’t had all that much success .
Albemarle, Nebraska grows a lot of corn for ethanol, but I agree with you that it’s unlikely that there was any conspiracy in the guard rail test.
https://nebraskacorn.gov/cornstalk/sustainability/ethanol-simplified/
Not allowing the Andretti’s into F 1 is absurd.
“Interestingly, Ford is dropping the hybrid version, because fewer than 5% of customers ordered it.” Maybe only 5% ordered it because it isn’t commonly known that the Explorer was available with that system, I certainly didn’t know and friends and family of mine who I queried didn’t know either, seems like it was an unintentionally well-kept secret.
XA351GT, I don’t think Russell is pushing Hamilton too much, with Hamilton finishing 3rd, to Russell’s 8th in the 2023 championship, and 6 to 2 in the podiums count.
As far as running from teams on the down turn, is Mercedes on a down turn? They were 2nd to Red Bull last year. I think it’s anyone’s guess what the pecking order will be be after the rules changes for 2025. Actually, Hamilton has done less team switching than about any driver who has been in F1 that long. He’s been with two teams. How many has Alonso been with, and how many switches?
Ziggy, I checked out the Explorer hybrid two years ago, but didn’t consider ordering one, because it is a gas hog, and expensive, compared to the Highlander hybrid I ended up buying.
https://www.fueleconomy.gov/feg/Find.do?action=sbs&id=46419&id=46158
It was just confirmed on the F1 app that Hamilton is going to Ferrari in 2025. No word on Sainz, or Lewis’ replacement at Mercedes. It will be interesting.
Kit, I thought hybrids were supposed to give you good gas mileage, what went wrong with the Explorer hybrid? Good choice with the Highlander, really like their styling and the promise of great reliability from a Toyota, if I needed one I don’t think I would hesitate to get one.
The Explorer hybrid has a bigger, V6 gas engine than Highlander’s 4, but is barely quicker, probably heavier. The Explorer hybrid gets better mileage than non-hybrids, but far behind the Highlander. My Highlander does even better than I expected, getting high 30s in mixed driving with short trips and~60 mph highway on two lane roads. It gets 33-34 at 80mph or so on highway trips. It’s not much “fun,” but it works well for transporting my toys. Mine is fwd, which gets a little better mileage than the AWD version.
Kit , Russell outrun Hamilton in his 1st season at Mercedes and scored a win. The only win Mercedes has had since 2021. If you add the points for those 2 years Lewis only leads Russell by 24 points . Given the fact that Lewis gets the preferred treatment with the team previously it will be interesting to see how they treat a lame duck driver this year. I doubt he’ll get all the new upgrades 1st like he has in the past.
Kit , yes I would say Mercedes is on the down turn. They went winless and were a very distant 2nd barely getting by Ferrari. McLaren and Aston Martin were out running them at different parts of the season. So yes compared to the 800lb gorilla they were they have slipped mightily . I’d be surprised this year if they finish in the top 3 in points .
XA351GT, 2023 is more recent than 2022, and Lewis seriously outperformed George in 2023.
Yes, of course Mercedes have “slipped,” as has everyone else, compared to the dominance of Red Bull the last two years.
Anyway, I wouldn’t bet against Red Bull dominating again next year, but with the rules changes the next year, who knows?
I have a blue fingerprint thing near the lower left corner here. Do others have it? If so, how do you make it go away?
Kit, the fingerprint seems to be here to stay. It’s the smartest graphic representation of privacy options I’ve seen yet, but a little too visible for my taste too.
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I won’t presume to out-reason a verdict I haven’t read, but well remember how Musk’s proposed remuneration verged on the fantastical back then, in the sense that there seemed no way Tesla could achieve so much, nor grow so fast.
But it was duly voted upon by the shareholders, and the company’s trajectory has been extraordinary.
It’s troubling to me that a judge would retroactively void such a key provision, even though the board’s power and fiduciary duties in relation to Musk cannot but appear to be out of kilter. The idea that it serves at his behest remains. His brother still sits on it too.
Thank you Kit. I thought it was something I did.
JoeS, I thought it was something I did too, until I found that it was on both my windows laptop and phone. Sean clarified it for us.