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Runtime: 12:15
0:00 Young Americans Very Open to Chinese Cars
1:15 EU Divided Over Chinese EV Tariffs
2:24 Ferrari Says EU Should Be More Pushy, Less Complacent
3:38 Kia Sees Solid Sales with EV3
5:28 Insurance Companies Total More Vehicles
6:39 VW Delays ID.7 in North America
7:39 AMG Mythos is Stunning Roadster
8:52 Jeep Wagoneer S Out Drags Tesla Model Y
9:43 Tesla Opens Battery Factory in Shanghai
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YOUNG AMERICANS VERY OPEN TO CHINESE CARS
The Biden Administration is putting 100% tariffs on imported Chinese electric cars to protect the American auto industry. And with good reason. A survey from the data firm Autopacific finds that 76% of Americans under 40 years old would consider buying a Chinese-made car. Really, Millennials and Gen Z are especially open to it. Autopacific said it was surprised to find how many young people were aware of Chinese car brands and says that’s thanks to social media. Older Americans, especially those over 60 years old, are overwhelmingly against buying a Chinese car. Even so, 25% of them would still possibly consider it. Sixteen percent of respondents said they’d be more willing to buy a Chinese brand, if it was made in the U.S. And they’re open to Chinese cars made in Mexico as well. Over 70% of respondents of all ages said they’d be worried about data privacy, but that wouldn’t stop them from being interested in Chinese cars.
EU DIVIDED OVER CHINESE EV TARIFFS
Meanwhile, Europe is grappling with how to deal with Chinese EV imports, which now account for 19% of EV sales and growing fast. European authorities are considering putting a 30% tariff on Chinese cars, up from 10% today. Mainly, they want to protect jobs. But German automakers in particular are against tariffs, because they fear China would retaliate against European cars and the German automakers rely heavily on the Chinese market for a big chunk of their profits. Carlos Tavares, the CEO of Stellantis, also says there’s no need for tariffs, and that European automakers just have to learn how to compete. But his solution to get competitive is to simply sell rebadged Chinese-made EVs from Leapmotor. So here’s our Autoline Insight. Politics and labor unions will probably win out in Europe. We think the EU will put a 30% tariff on Chinese EVs even knowing full well that China will retaliate.
FERRARI SAYS EU SHOULD BE MORE PUSHY, LESS COMPLACENT
By the way, it’s not just mass manufacturers in Europe who are worried about Chinese EVs. So is Ferrari. Benedetto Vigna, the CEO of Ferrari, tells Bloomberg that this is “A call for action for Europe.” He’s not calling for tariffs on Chinese cars, but says Europe needs to be “more pushy, less complacent.” But then again, Ferrari doesn’t have too much exposure in China. Vigna says it will never account for more than 10% of Ferrari’s sales. And he’s very bullish on Ferrari’s first electric supercar that will come out at the end of next year. He says they’ve come up with the right sound for the powertrain. “An electric motor is not silent,” Vigna says, “it can deliver emotion. We don’t sell technology, we sell emotion.”
KIA SEES SOLID SALES WITH EV3
The global market for compact electric crossovers is going to be fiercely competitive because so many automakers have, are about to or will offer a model to buyers. One of those ‘about to’ enter the segment is the Kia EV3. You can see the family resemblance to its big, big brother the EV9, but the ruggedness has been toned down a bit. The interior is clean and modern looking with a long, thin 30-inch screen that houses two displays. The EV3 is built on a front-wheel drive version of the Hyundai Group’s E-GMP platform and offers two battery sizes. The standard version comes with a roughly 58 kWh battery pack and while Kia didn’t reveal how much range it will offer, it did say the long-range version with a 81.4 kWh battery will offer up to 600 kilometers or 372 miles of range on the WLTP test cycle. At the moment we’re unsure if it’s 400- or 800-volts and what chemistry the batteries are. But when we learn that we’ll be sure to let you know. But we can tell both versions of the EV3 are powered by a 150 kW or 201 horsepower electric motor. Pricing is expected to be around $35,000 – $50,000 or roughly 30,000 – 46,000 euros. Sales kick off in Korea in July, followed by Europe in the second half of the year, then the U.S. and other markets after that. And according to Automotive News, Kia eventually plans to sell 70,000 – 80,000 in the U.S. alone. So, the EV3 is a massively important vehicle to the company.
INSURANCE CO’S TOTAL MORE VEHICLES
More and more vehicles are being written off or totaled after an accident according to an opinion article in Bloomberg. That’s because it’s more expensive to fix a vehicle, due in part to all the new technology in cars. Repair costs have risen 50% since the start of the pandemic. AAA says advanced driver assistance systems account for 38% of repair costs on average. In a Ford F-150 for example, replacing and calibrating a side mirror with a camera is estimated to cost $1,600. According to CCC Intelligent Solutions, 21% of vehicles were totaled following an insurance claim in the first quarter of the year, which is close to a record. And salvage firm Copart, says the figure could rise to 30%. Most of the vehicles being totaled are old and not worth being repaired because it would cost more than they’re worth. But instead of being broken up for scrap parts and metals, buyers in emerging markets are exporting and restoring the vehicles.
VW DELAYS ID.7 LAUNCH IN U.S.
Another day, another automaker is scaling back its EV plans. Nissan, Ford and GM have all done so recently and now we can add Volkswagen to the list. The automaker announced that it’s delaying the launch of the ID.7 electric sedan in the U.S. and Canada. The model was supposed to go on sale sometime this year but now it’s being delayed indefinitely and there is no new date for when it will launch. VW didn’t say why it’s delaying the ID.7 in North America, but we think it could be because it’s a sedan, which don’t sell well in this market. In addition to scaling back EV plans in North America, VW is also doing the same in Europe. The automaker’s chief financial officer says its battery plants in Europe may take longer to reach full capacity than it planned. VW still intends to start battery production next year but due to the slowdown in EV demand, it won’t ramp up as quickly.
AMG MYTHOS IS STUNNING ROADSTER
As if Mercedes-AMG vehicles weren’t already an exclusive club, it’s coming out with an extremely limited series of cars, called Mythos. And it’s previewing the first of those models, the PureSpeed concept, which will be the base for a production car that’s limited to just 250 examples and will only be sold to “the most dedicated Mercedes‑Benz enthusiasts and collectors.” It didn’t provide a whole lot of detail about the car, but we think it’s based on the current SL and with a “halo” bar over the cockpit, like an F1 car, we wouldn’t be surprised to see an F1-inspired powertrain under the skin. It’s not often that you see a sports car with no top or no windshield or windscreen, depending on which side of the pond you’re from. But PureSpeed is not the only one. Several years ago, McLaren started producing the Elva, Ferrari pulled the wraps off the Monza SP1 & SP2 and Aston Martin debuted the V12 Speedster. And just recently at the Beijing auto show, Fang Cheng Bao, which is part of BYD, revealed the Super 9.
JEEP WAGONEER S OUT DRAGS TESLA MODEL Y
You can easily just compare the numbers to figure out that the new Jeep Wagoneer S will beat the Tesla Model Y Performance on paper. But Jeep must think there’s no fun in that. It probably also wanted to get out in front of the dozens of YouTubers that are going to drag race the two EVs anyway and just did it itself. Jeep produced a video with the two going head-to-head and with an estimated 0-60 MPH of 3.4 seconds the Wagoneer S just squeaks past the Tesla, which does 0-60 in 3.5 seconds. But then Jeep hints that the two separate from each other because the Wagoneer S also offers some off-road capability. The real answer will come when it goes on sale this fall.
TESLA OPENS BATTERY FACTORY IN SHANGHAI
Speaking of Tesla, it just broke ground on its first Megafactory outside of the U.S. Located in Shanghai, the $200 million plant will produce 10,000 commercial energy storage systems or Megapacks a year and will have a capacity of 40-GWh. Full scale production is expected to start in the first quarter of next year and Tesla will also export the storage units, mainly in the Asia-Pacific region.
And that brings us to the end of today’s show. But don’t forget that Autoline After Hours will be live at 3PM EST today. I hope to see you there.
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Lambo2015 says
With each generation separating us further and further from the industrial revolution we tend to forget that the US was built on manufacturing jobs and the importance of those jobs. The younger generation just wants cheap products no matter their origin. This is not surprising nor is it mysterious. With each life cycle we ship more and more jobs overseas and each new generation grows up with fewer families supported by manufacturing. When they are not affected by the impacts of outsourcing why would they care?
More and more cars are being written off by insurance companies while the institutions they govern are pushing for more and more safety features like auto-braking and autonomous features. These add more sensors and make insuring the cars cost more which in turn they charge higher premiums and increase profits based on the higher dollar amount. Meaning even if they still only make a 15% profit. 15% of 300 million and 15% of 600 million is significantly different.
MJB says
Lambo2015, I agree concerning the mindset of the youth. Furthermore, I don’t think they even consider China a threat or an adversary. How many of them would quit using TikTok even if they KNEW their data is compromised?
GM Veteran says
Well said, Lambo!
It is confusing for younger people these days. Its hard for them to know who our adversaries are and what the consequences of their purchasing actions will be when an entire faction of our politicians sow confusion by ignorantly “befriending” countries and their dictators that have been enemies of the US for decades and that work internationally to create chaos, conflict and economic harm. Hopefully this populism phase will pass relatively quickly and most of our politicians will once again be on the same page as to which countries seek cooperation and mutual economic progress with the US and which ones do not.
DailyDriver says
VW once again eating a heaping helping of crow as their virtue signaling of moving to an EV-only lineup after their emissions cheating scandal dies a quiet death. Or at least as quiet a death as they can manage to hide their shame. The EVpocalypse spares no one. And watching the true believers admit defeat as they stare into the abyss of insolvency is glorious. I guess since we perpetually only have 10 years left to save the planet ( the same revolving 10 years we’ve had since 2013 when the polar ice caps were supposed to have melted per the Rev. Al Gore) VW has decided “aw the hell with it.”
Bob Wilson says
Sounds like the VW retrenchment on EVs will make the electric MicroBus the car of the future along with fuel cells and fusion power plants . . . where they will always be.
I bought my new, 2019 Tesla for low operating cost and AutoPilot. AutoPilot paid for itself the first month when there was a medical event. Now with Full Self Driving, I’m only interested in businesses and labor that make such cars.
As for maintenance, see my do it yourself write up on the now 131,000 mi, 5 year old, Tesla. Answers given at the “May the 4th be with you” paid for the trip.
Bob Wilson says
Sorry, the web page link isn’t working:
https://www.teslaownersonline.com/threads/may-the-4th-be-with-you.32522/?post_id=406516#post-406516
wmb says
That EV3 looks GOOD and if they can live up to that 300+ range in winter states, along with home charging and a $38K price tag nicely equipped, Kia may have a hit on their hands. The EV Equinox may be their closest competitor at that price point. The Volvo EX30 could be too, but a 100% tariff and an announced range of 260+ might leave it out of the running.
Why would Jeep have the Wagoneer S race the Model Y, when I thought it was closer in size and a direct competitor to the Model X?! Excluding the Plaid version, the regular X and S may have been a better choice for this comparison, but Jeep’s selection of vehicles was no doubt by design. The other thing I think is a little weird, is that for all their other BEVs, especially in markets outside of the US, Stellantis is selling an ICE version. If they follow suit with the Wagoneer S, that would mean that Jeep will have three ICE vehicles in the midsize SUV slot: the Grand Cherokee, the Grand Cherokee L and the Wagoneer S! While it made a LITTLE more sense when the Wagoneer was being primed to be its own little sub brand within Jeep, but now it appears that they have an excessive amount of vehicles in that same space.
Sean Wagner says
I think Kia has really hit a home run styling wise. Who’s the designer? And do they have several studios? The interior is nicely executed too (though somewhat spare), with its echoes of the exterior theme, and some real buttons. Looking forward to seeing the first one driving around here.
The VW Microbus is beginning to gain some visibility, mainly with businesses. The front overhang has really been reduced to a minimum. Not so the price.
Tesla btw has begun hiring again in NA, but the open positions are all AI-centric. Musk looks to be hanging the ‘legacy’ automotive side out to dry, and sooner or later, there will be consequences. Such a shame. The Model Y is doing all the heavy lifting for Tesla now, while the competition is beginning to creep up.
Kit Gerhart says
It looks like Jeep is using the Wagoneer name for the S to move it “upscale,” as Land Rover used the Range Rover name for the Ford Escape-like Evoque.
I’ve had my Highlander hybrid for over two years, and I tried the automatic lane holding for the first time yesterday, on a lightly traveled two lane state road. It seemed to hold the lane decently, but… After 10-15 seconds, the display tells you hold the steering when. If you don’t do that, it starts beeping after a few seconds. Then, a few seconds after that, even in conditions where it is working well, it disengages, allowing the car to run off the road or drift into the oncoming lane. I don’t see to point of this “feature.” I’ve tried it, but it will remail turned off from now on.
Lambo2015 says
Kit- the few vehicles I’ve driven with lane assist it ended up being turned off too. I didn’t like the tug feel when it tries to correct it reminded me of hydroplaning which I did happen to be on wet pavement, so it was a little unsettling. I also don’t always use my blinker to exit the freeway if no one is around and it’s a nice gradual merge to get off or enter another highway and as I was trying to exit the system is trying to keep me in my current lane. So, I guess the good side is it really kind of forces people to use their blinkers at all times. I personally didnt care for it so I just shut it off. I did like the active cruise control other than it was leaving too big of a gap between me and the vehicles ahead of me. Impatient people would zip around me on the right cut in and then the vehicle would adjust for that same gap pushing me further back and it would happen again. So in order to close that gap I needed to shut it off complete my pass and then turn it back on. But thats really the fault of other drivers why I disliked that feature. In light traffic its great tho.
Kit Gerhart says
Lambo-I rarely use adaptive cruise, for the same reasons you mention. I never use it on interstates or similar, and use it on two lane roads only when following someone going about the speed I want to go, and no one is close behind me. On the other hand, I use constant speed cruise control a lot.
MERKUR DRIVER says
Sean Wagner,
To me musk is attempting to prove a point to the board. They want him to maintain/grow his current responsibility and then add AI to his list of responsibilities. He requested a pay increase of 41B to compensate for the increase in responsibility and it looks like they will deny his request. So he is fine with trashing the Auto side so that he can focus on the AI side per their request. If the board agrees to his 41B pay raise, then I can guarantee he will stop trashing the auto side. What Muak is doing to Tesla auto is “theatrics” but with real consequences to humans. That makes musk’s theatrics completely unethical to me. Of course Musk has never been a stand up human so this is not unexpected.
Curtis Easter says
Recently my 2013 Volvo C30 was hit head-on by an inattentive driver. Even though I was able to drive it away, the insurance company deemed it was too expensive to repair. Due to the procedures at the insurance company, I was unable to buy it back and repair it. There is more to the story than vehicles being too expensive to repair. I believe there may be a class action lawsuit for the insurance companies somewhere in the future.