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Runtime: 8:18
0:00 Smaller Chinese Automakers Form Battery JV
1:10 VW Makes Big Investment in China
2:01 Blink Tripling EV Charger Production
2:38 Ford Gets Big Fine for Evading Import Tariff
3:30 IIHS Says Partial AV Systems Aren’t Good Enough
4:42 Volvo Partnership Could Reduce Charging Time by 30%
5:17 Nissan Turning to Incentives to Boost Sales
6:27 EVs Too Expensive So Mercedes Keeping A-Class Longer
7:01 Rivian Provides Base for New Canadian Mail Truck
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
SMALLER CHINESE AUTOMAKERS FORM BATTERY JV
So far this year over 50 GWh of batteries have been installed into NEVs in China, which is an increase of 32% compared to last year. And the top 3 companies control nearly 80% of the market. The biggest, by far, is still CATL and it just formed a joint venture to make battery cells in Beijing for a couple of smaller Chinese automakers. BAIC and phone-turned-automaker Xiaomi announced a partnership with CATL to develop, produce and sell lithium-ion batteries for NEVs and storage devices. Together they’ll invest roughly $140 million into the new joint venture and plan to have enough capacity to power 120,000 vehicles a year. So, it’s clearly not a massive deal, but we expect to see more partnerships like this if the EV price war in China continues. That way these smaller automakers get the batteries they need without having to spend as much money.
VW MAKES BIG INVESTMENT IN CHINA
VW’s sales in China are down by something like a million units over the last 5 years, but it’s pumping more money into the market to help try and turn that around. VW is boosting its investment in its joint venture with JAC by an additional $683 million, while JAC will invest another $223 million as well. It also has JVs with FAW, SAIC and XPeng, but its partnership with JAC is the only one it owns a majority of. In 2020 it increased its ownership to 75%. In November of last year VW said it planned to use more local content and develop a platform for low-cost EVs in China, so this fresh investment will likely go towards those efforts.
BLINK TRIPLING EV CHARGER PRODUCTION
There’s government incentives to build and install EV chargers in the U.S. and the charging infrastructure isn’t big enough to meet future EV targets. So, we’re not surprised to see that Blink Charging is going to triple production of its EV chargers in the U.S., which replaces previous plans to make chargers overseas. It announced that it’s going to build a new 30,000 square-foot production facility in Maryland with a capacity to make over 50,000 charging units a year. Blink says it hopes to become a key player in this rapidly expanding industry.
FORD GETS BIG FINE FOR EVADING IMPORT TARIFF
Ford is being slapped with a huge fine for evading U.S. import tariffs. The company is paying $365 million to settle allegations that it misclassified and understated the value of hundreds of thousands Transit Connect vans that were imported from Turkey between 2009 and 2013, which allowed it to avoid paying higher tariffs. The Justice Department says it’s one of the largest customs penalty settlements in recent history.
IIHS SAYS PARTIAL AV SYSTEMS AREN’T GOOD ENOUGH
The Insurance Institute for Highway Safety is launching a new ratings program for partial driving automation systems to help push car companies to improve their safety. Out of the 14 systems tested, only one, the Lexus LS’s Teammate system, received an acceptable rating, while two were deemed marginal, and 11 were rated poor. The evaluation covered systems from BMW, Ford, General Motors, Genesis, Lexus, Mercedes-Benz, Nissan, Tesla, and Volvo. IIHS President David Harkey said most systems lacked adequate measures to prevent misuse and maintain driver focus on the road. The tests highlighted deficiencies in monitoring driver attention, attention reminders, emergency procedures, driver involvement, and adherence to safety features. The IIHS was also concerned how quickly these systems are being integrated but did say improvements are possible through software updates. The IIHS hopes the ratings will lead to enhancements to reduce misuse and improve safety in the systems.
VOLVO PARTNERSHIP COULD REDUCE CHARGING TIME BY 30%
Volvo is partnering with Breathe Battery Technologies, to get access to its charging software. Volvo will integrate Breathe’s software into its battery management platform, to optimize charging performance with faster charging times of up to 30%. Breathe’s adaptive charging software dynamically controls the battery in real-time, significantly reducing charging times while preserving battery health and lifespan. Volvo says the partnership is part of its goal of achieving full electrification by 2030.
NISSAN TURNING TO INCENTIVES TO BOOST SALES
The Rogue is Nissan’s best-selling model in the U.S. but it’s having trouble selling 2023 model-year examples of the SUV. According to Edmunds, there are about 24,000 2023 model-year Rogue’s at Nissan dealerships or about two-thirds of Rogue inventory. To put that in perspective, 2023 Hyundai Tucson’s account for 1.7% of Tucson inventory at Hyundai dealers and 2023 Equinox’s account for 2.7% of the crossover’s inventory at Chevy dealers. So to help boost sales of the Rogue, Automotive News reports that the company is offering dealers $1,000 for each 2023 Rogue they sell in March if they meet their sales target for the model. But the Rogue isn’t the only model Nissan is having trouble selling, its supply of vehicles was at 112 days at the end of January, compared to the industry average of 80 days. So to help clear that inventory Nissan spent $3,210 per vehicle on incentives in February.
EVs TOO EXPENSIVE SO MERCEDES KEEPING A-CLASS LONGER
EV demand has slowed and EV prices are still relatively high, which has some automakers bringing back and extending ICE programs. Mercedes was supposed to stop production of the A-Class this year, but it will stick around a few more years, at least into 2026. The A-Class is Mercedes’ entry-level car in Europe and CEO Ola Kallenius says EVs won’t reach cost parity with ICEs is still many years away, which likely factored into keeping the A-Class around.
RIVIAN PROVIDES BASE FOR NEW CANADIAN MAIL TRUCK
Americans aren’t the only ones getting a new mail truck. Morgan Olsen revealed a new right-hand drive electric mail truck for postal workers in Canada. The model, called the C250e, is actually based on the Rivian delivery van chassis and uses Rivian’s electronic architecture, but the body is installed by commercial vehicle upfitter JB Poindexter. No word when the vehicles might go into service, but Rivian told publication FleetOwner that this is “potentially the first step of a very strong partnership.”
And that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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Went to Morgan Olson website and it said on the Ford van ev chassis?? for Canada Post
Wow. I’d call that leading edge design for the Canada Post trucks. Choked me up a bit with national pride. Can’t wait for all the Youtube reviewers to squat down next to that magnificent grille and headlight, waxing lyrically about the designer’s intentions. I am surprised they didn’t do a Dodge dark reveal, perhaps teasing a taillight or even the license plate holder.
Wow! And I thought our new postal delivery vehicle was ungainly and unattractive! (and it is).
If that is based on the Rivian chassis, or even the Ford chassis, apparently the Canadian government is not interested in aerodynamic efficiency. Its likely cheaper to build but will cost $ in extra fuel used to push that shoebox through the air. Its like they decided to use a boxy design that was so old they would not have to pay any design royalty on it. Looks very much like delivery step vans from the 1960’s.
I remember how clever Ford was to bring in the vans with throw away seats to beat the import duty. As they say, a dollar deferred is a dollar earned or something like that.
Dave, looks like Morgan Olsen deals in Ford, Freightliner, and GM/Workhorse chassis.
The JB Poindexter & Co. are the ones taking the Rivian chassis and using a Morgan Olsen C250 truck “body” on top of it for the Canadian Post. The green one on their website doesn’t look quite as bad, but looks more like a food truck.
http://www.jbpoindexter.com
A friend of mine owns two Nissan dealerships in Michigan. I talked to him a few days ago and he said that their new car business was really dead. I was surprised because I had just seen favorable sales reports for the industry for January and February. He said they just are not getting interested customers in the door like they used to. Even so, 2/3 of inventory being 23 models this far into the 24 model year is a really bad sign. Nissan may have to pony up more than $1,000 to clear that inventory. At this point, I would have to have a much bigger incentive than that to buy a past model year vehicle. In six months, those vehicles will be two model years old!
Many people are not familiar with the monolithic monopoly known as Canada Post. These trucks will not be moving at a speed that would require streamlining. In-town letters between post boxes take days. We can’t get rural delivery at our cottage because we already have a home address. This truck just confirms what Canadians already know. And we did all this without a political appointee.
my first thought it looks better than the new US postal trucks do, it’s flat like a brick but it’s going slow most of the work day so aerodynamic is really isn’t required. Being electric in the colder climates of Canada how much of a problem will batteries and range be? .
Do the new mail trucks in Canada have an ICE version as well? Our rural mail delivery has been done by a very similar looking vehicle for a few months now.
GM Veteran,
I was thinking the same thing. $1,000 is not moving the needle much in terms of incentives. Nissan needs a redesign in a huge hurry as their line up of vehicles is not very compelling.
I read in another article that, at least initially, the Canada Post EVs will be used for routes of not more than 50 miles, so should be ok even when it’s cold.
Wow Nissan! Some were saying that it was only the Detroit Three that has vehicles sitting lot because the UAW requires the legacy OEM to build vehicles no is buying! Now we see that a transplant, which is not a union shop, does the same thing! So, is it the employees pushing the leaders to build, or the other way around?!
The requirements for the partial AV systems to pass the IIHS tests, sound so cumbersome (and rightly they should be!), that it seems that it would be easier to just do without them and just drive the vehicle yourself!
Mercedes says that EVs are too expensive?! Weren’t they saying not long ago that they were making record sale with their EVs? What they seem to be saying is that their smaller EVs will be too expensive for them to get profit and make money on.
A ’23 Rogue is the same as a ’24, or at least the same generation. Still, the way depreciation of late model mainstream vehicles is highly based on model year, it will take a lot more than $1000 discount to sell the left over ’23s.
I rented a 2023 Rogue for a week a while back and while it is a good car overall it does have some drawbacks that I observed, primarily pronounced road noise from the tires and some very ugly interior colors that might make some people think twice before buying, particularly a dash top in dog shit brown that was carried throughout the rest of the vehicle. There is also the concern that the variable compression ratio turbo engine is a bit too high risk along with a CVT transmission, all of which are higher risk for problematic reliability and durability. I would need at least 10k off list price to even consider it at this point in the 2024 model year cycle.
It turns out that the Rogue’s variable displacement turbo triple actually has a small mpg advantage over the non-hybrid competition, but I still wouldn’t want that complexity. Much of the competition uses CVTs, but I don’t know who makes any of them, like for Subaru, Honda, or Nissan.
That Canadian postal van is hideous beyond belief. Good for Rivian if they can supply the underpinning tech, commercial vans will hopefully tidy them over this period of enormous losses. It remains astonishing that presently, only CATL (the Standard Oil of our time), BYD, and Tesla have managed to make substantial profits with EVs and their cells.
Btw, not only is the Tesla Model Y Germany’s top EV, but it was also its seond-best selling vehicle last month. Not one Ford in the top ten – that used to be different.
In this turbulent environment we seem to be living in these days where, if it’s not one thing it’s another. I have to wonder if automakers are allowing the inventory to climb simply because who knows what might shut them down next? It’s an election year interest rates are up along with the cooling demand for EVs. All of which will make for a very unpredictable sales year. Manufacturers are struggling to figure out just the right EV/ICE mix. Nissan Rogue is nothing special. Bad enough all those mid-sized SUV look about the same there isn’t anything that really makes the Rouge stand out from the rest. No outstanding design, no outstanding powertrain, in fact the complexity and CVT would be a reason to look elsewhere for me. But in the world of look-alike vehicles Nissan needs something to make it stand apart and they just haven’t. So, someone is going to suffer, and it appears to be Nissan at this point.
Not sure what the answer is for them, but an outstanding interior or all new exterior would seem to be a good start.
The thing that sets the Rogue apart is that it has what is probably the most complex 3 cylinder engine in the world. That wouldn’t be a selling point to most people, though.
When I was in the navy in Scotland in the early 70s, Ford was the biggest seller in the UK, I think by a wide margin. They are still number two there, after VW. Ford is a distant number 8 in Germany, with less than a quarter the sales of VW.
The Mach-E was a golden opportunity for Ford to move (back) up the value chain in Europe.
They once were a niche, but not insignificant player, what with their Granadas and Scorpios, or the classy Ghia moniker for upscale interiors. I don’t understand why they failed so spectaculary, and are quasi-irrelevant in that space overseas. Maybe the commercial vans will allow them to scale.
I saw a lot of rear drive first generation Escorts when in Scotland, and I think they were the top seller in the UK for years, but I don’t think they ever sold too well on the continent.
I always find it interesting how a car company sometimes can’t see the forest for the trees, ie do everything to win a battle but loose the war. Here in Canada, Nissan has just done that with a Leaf Owner. I don’t know all the details but a customer had repeated trouble with the battery and had it into the dealer numerous times, waiting for parts, loosing the car’s use, etc. Sounds like Nissan finally just gave up and dumped it in his driveway, claiming it was fixed. The owner was quoted as saying that he is afraid to take it anywhere thinking it will stop again and cost him towing money to get it to a shop or home. Kind of publicity you don’t want as you are trying to sell Leafs and as an aside, having the public wondering if that’s how Nissan would treat their ICE customers too. If you have a lemon, why not just give the customer a replacement to keep him happy.
How UGLY can a mail truck be? I live in Canada and that design is BUTT Ugly.