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Runtime: 10:23
0:00 Tavares Warns Supply Base Must Shift to Low-Cost Countries
0:38 Jeep to Unveil $25,000 EV for U.S.
1:55 EU Delays Decision On Chinese Tariffs
2:33 Musk Could Become Trump Advisor
4:42 OEM EV Charger Effort Slow Out of the Gate
5:33 Nissan Still Struggling with Takata Recall
6:10 Zeekr 007 Spanks Porsche & Tesla
6:56 Archer VTOL Gets Big Sale in Korea
7:38 Genesis Turning to Lucid for EV Motors
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TAVARES WARNS SUPPLY BASE MUST SHIFT TO LOW-COST COUNTRIES
Stellantis has the worst relations with suppliers in North America, according to the latest survey from Plante Moran. And it’s probably going to get worse. Carlos Tavares, the CEO of Stellantis says the transition to EVs is going to be a big burden on suppliers. And he warns that there will be a huge shift in the supply base from Western countries to low-cost countries in the developing world. He says the EV race has become a cost cutting race.
JEEP TO UNVEIL $25,000 BEV
Tavares also says Jeep will soon have an all electric model priced at $25,000 in the U.S. market. We believe it’s going to be built on the same platform as the upcoming Opel and Vauxhall Frontera and Citroen e-C3, which sells for about €23,300 in Europe. These are modest vehicles, with a 44 kWh LFP battery pack, and 199 miles of WTLP range, which will probably translate to a 150 mile rating from the EPA. The electric motor generates 113 horsepower. 0 to 60 miles an hour takes about 11 seconds. And top speed is 84 miles an hour. Citroen says it will have a cheaper version out next year, just under €20,000, with a smaller battery that delivers 200 kilometers of range. That would probably be a 100 mile range under EPA testing. A $25,000 Jeep will get lots of headlines, but with those specs, we don’t think it will sell very well in the U.S. market.
By the way, later tonight Jeep is going to unveil the Wagoneer S, and we’ll have the details on that in tomorrow’s show.
EU DELAYS DECISION ON CHINA TARIFFS
It looks like China’s negotiations with Europe over tariffs are paying off. The EU was about to raise tariffs on Chinese made vehicles next week, but Reuters reports that the European Commission will delay the vote until after the European Parliament election on June 9. The EU is considering boosting tariffs on Chinese vehicles to 25%, up from 10% today, which would cost Chinese automakers billions of dollars. China says the EU is being “unreasonable” and is bargaining hard to stop the tariffs, and it looks like that’s paying off.
MUSK COULD BECOME TRUMP ADVISOR
Back in January, Elon Musk warned legacy automakers that unless barriers were put up to block Chinese automakers, they would demolish most of the car companies in the world. But now that the U.S. put up tariffs, and the EU is talking about doing the same thing, Musk says that he’s opposed to tariffs on Chinese cars. Here’s why we think he changed his tune. Tesla is pushing hard to get FSD, or Full Self Driving, approved in China. It could provide the company with a major jump in revenue with very high margins. And Musk needs the blessing of Chinese regulators to make that happen. So coming out very publicly against tariffs on Chinese cars is not going to go over very well in China. But here’s where it gets interesting. The Wall Street Journal reports that if Donald Trump gets re-elected, he’s considering making Elon a policy advisor in his administration. And Trump is very keen on putting up trade barriers and tariffs on Chinese goods. So Musk may have some more ‘splaining to do, before he gets the OK for FSD in China.
OEM EV CHARGER EFFORT SLOW OUT OF THE GATE
It looks like the newly formed charging company IONNA won’t be installing its first EV chargers this summer as planned. IONNA is a partnership between BMW, GM, Honda, Hyundai, Kia, Mercedes and Stellantis that was announced earlier this year and has a goal of building 30,000 charging stations in North America. It initially said the first fast chargers would go in this summer, but without saying who, WardsAuto reports that two of those automakers have confirmed it’s unlikely any of IONNA’s superchargers will be in place by that time. Instead it looks like the earliest they’ll be up and running is by the end of the year. One possible reason for the delay is that IONNA now wants to launch chargers with both CCS and Tesla’s NACS connector.
NISSAN STILL STRUGGLING WITH TAKATA RECALL
Automakers are still dealing with defective Takata airbags. Nissan and the National Highway Traffic Safety Administration issued a “do not drive” warning for 84,000 vehicles. The affected models include Sentras, Pathfinders and Infiniti QX4’s that are more than 20 years old now. The airbag inflator equipped in the vehicles can explode during a crash and send out shrapnel that can be deadly. If you own a model that hasn’t been fixed yet, Nissan says to call a dealer, who will get the vehicle towed and replace the parts for free.
ZEEKR 007 SPANKS PORSCHE & TESLA
The performance version of the Zeekr 007 just beat the lap times of the Tesla Model S Plaid and Porsche Taycan Turbo S at the Zhejiang Circuit in China. It was able to lap the 3.2 kilometer or nearly 2 mile track in a little under 1 minute and 42 seconds, which is about 3 seconds faster than the Porsche and Tesla. The 007 Performance features an upgraded chassis and suspension, improved aero, performance tires and brakes and more. Electric motors on the front and rear combine for 475 kW or 635 horsepower and it can accelerate from 0-100 km/h in 2.8 seconds.
ARCHER VTOL GETS BIG SALE IN KOREA
U.S. electric VTOL startup, Archer Aviation, signed a deal in South Korea to sell 50 of its vertical take-off and landing aircraft. Mobility company KakaoMobility plans to purchase the VTOLs for an estimated $250 million. It will then own and operate the eVTOLs in South Korea, offering flights to its 30 million users starting in 2026. The Korean government has set a goal of commercializing urban air mobility by the middle of the decade and the service is first expected to launch in Seoul. By the way, Stellantis, American Airlines and Boeing are all investors in Archer.
GENESIS TURNS TO LUCID FOR MOTORS
When it comes to EV parts and components, more and more automakers want to build those things in-house. And with businesses that expand well beyond the automotive industry, the Hyundai Group is better positioned to make that transition. So, we were a little surprised to see a report out of South Korea that says Genesis, which is part of Hyundai, is close to a deal with Lucid to buy its EV motors. However, it’s not too hard to see why Genesis wants Lucid’s motors. Its single-motor unit, which also includes the inverter and transmission, weighs 160 pounds and is small enough to fit into a carry-on bag, but makes up to 670 horsepower. Aston Martin even signed up with Lucid for a dual-motor unit. Genesis also just created a new performance division and hired an old Porsche guy to run it, so maybe his job will be to incorporate the Lucid motors in its cars.
Be sure to tune in to Autoline After Hours this afternoon. We’ll have Barry Caldwell from Dassault Systemes to show us the latest simulation and virtual tools that are slashing the time it takes to develop new cars. Brett Smith, formerly of the Center for Automotive Research, will join us. And Tu Le from Sino Auto Insights will be on to report on the latest automotive developments he saw in China. So join John and Gary when the action goes live at 3 pm eastern time on the Autoline website and our YouTube channel.
But that’s it for this show. Thanks for tuning in.
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In 2017, Musk quit a Trump advisory council:
https://www.reuters.com/article/idUSKBN18S6FA/
Musk realized that Trump wanted to dictate his advice to the members. Regardless, Trump has announced policies that will gut the Tesla mission statement and its businesses. Trump is already shaking down the oil companies for $1 B. Remember, Trump claims windmills ’cause brain cancer’ and Trump is a man of his word . . whatever he says at that moment.
It didn’t take Stellantis long to destroy the market advantage they had with Jeep. First no response to the Bronco, then all this small urban car stuff. What were they thinking? North America is where they make all their profit. First a Fiat jeep now a Citroen jeep. Poor old Chrysler should be taken out behind the barn and put out of its misery. What an ignoble end to a historic brand.
Is Tesla spinning off some businesses to raise money? I’ve heard rumors that the Supercomputer business was being spun off, the charging station business might be spun off and even that low volume production (model S and new Roadster) might be spun off to Magna. Is any of that true? Have you heard these rumors?
Some, or a lot of Jeep’s recent problems are that the vehicles just aren’t very good. Compass is consistently rated near worst-in-class, whether by CR, or by enthusiast publications. That was also the case with Renegade, though I know a couple people who drive, and like Renegades as “city cars,” in spite of the sub-par performance and fuel economy.
As far as Wrangler, they have serious competition for the first time with Bronco, which is going to hurt them, no matter what. Would making the Wrangler better help much? Neither Wrangler nor Bronco, while very off-road capable, are very practical for normal use. They are thirsty, noisy, ride poorly, and get pricey as commonly equipped. The Citroen Jeep might make a decent city car for a lot of people who have home charging, but it will never fit the Jeep brand.
It’s clear to me that Musk is what has been holding Tesla back the most this past year. Diluted product value & brand equity by sharply lowering price, now politicizing his company while aligning to the party sponsored by hydrocarbon producers. Hard to explain not many people are talking about this.
Jeep has already announced the Wagoneer EV will
be built in Mexico. Great job UAW! Enjoy your continued layoffs and plant closures in the states, just keep those dues coming in (UAW management will be just fine, don’t worry.) Of course the normal Wagoneer doesn’t sell so well but I’m sure the EV version, which will carry a premium price tag but also depreciate like a lead boat anchor rather than just a stone, will sell much better.
Some industry watchers are saying that Stelantis is trying to reduce their dealer network by forcing some into insolvency with their bad decisions and practices. Seems like they want to do themselves in as well.
Kit,
Bronco sales are hurting them. Wrangler sales are down by nearly half since Bronco came out. That is roughly 100,000 vehicles. Guess how many Broncos are being sold per year? Yep, roughly 100,000. The market did not expand with Bronco’s debut, they are just splitting the buyers between them now. Your point on their quality is spot on though. Also, they have let the time between refreshes and redesigns become too long. That is the main reason the Cherokee died. It was no longer competitive and Stellantis did not want to invest in an all-new design with EVs coming on fast.
It would be interesting to see how a Musk advisorship would work out since the man he would be advising has been promising to kill the EV industry at nearly every rally this year. Could be a short-lived relationship.
I am not surprised that the EU tariff vote was delayed until after the elections. Putting politicians in the spotlight like that just ahead of an election is the last thing they would want. They can vote after they secure their seat for another term.
The IONNA story is a primo example of the smoke
and mirrors that is the Green Energy news cycle. They announce this grand partnership a year ago to build this charger network to much fanfare here and in the press. Then quietly do Jack crap for a year, nothing is built, and eventually they quietly push back their calendar over and over. But they’ve planted the idea that something has been/ is being accomplished even though nothing has. People *think* something is being done but naw, not really.
Another example: Some liberal talking head busted Buttigieg on some live show last weekend about the fact that his department has had $1.something billion earmarked for over a year to build chargers and they’ve managed to build eight. Eight! Not eight groups or locations, eight single chargers. He looked like a fool and rightfully so. I wonder if those eight have been stripped for copper yet..
GM Vet, yep, Bronco is taking a lot of sales from Wrangler, and that would be the case, even if Wrangler were the better vehicle, which it’s not in most ways.
It seems like Musk and Trump would be at odds on a lot of things EV, but Elon has been heavily campaigning for Trump and Republicans in general for months in his tweet storms, well, X storms, and the things that show up in the “For you” feeds. .
I think Plymouth Cricket would be a good name for the upcoming Jeep/Citroen EV.
I hope my comments don’t add to the political divergence in this forum. I just want to add that Elon might be pursuing an advisor position for one of two (if not both) reasons… he might see an opportunity to prop-up the value of Twitter (he and Trump share some similar views about social media) – and/or – an advisor “inside the tent” has a better chance of shaping policies that are less hurtful to Tesla.
Daily Driver — I don’t think Stellantis’ decision to build the Wagoneer S in Mexico, had anything to do with the UAW and their new contract for hourly workers at the company. Ford builds the Mach-E in Mexico, so it may be just them following suit.
IMHO, Stellantis should just do as GM and other OEMs are doing and field an affordable EV, first in the $35K space. Then as the tech advances and the battery cost come down, then go the $20-25K route. For, as Sean said in today’s report, it does not seem realistic that North American buyers would be in a hurry to spend that kind of money to just have less then 150 miles of range. As we all know, unlike with ICE vehicles, everything in an EV, runs off the battery! So, don’t HAVE TO go somewhere at night, while it’s raining or snowing and very cold, requiring you to have the head lights, windshield wipers, defrost and heater/HVAC on! That sub 150 miles of range is dwindling by the minute. Unless they have a skunkworks program like Ford has and is look to produce an EV for $25K, with (hopefully) 250+ miles of range, they should just stick with what the industry has already established.
*established in the since that, in North America , if I’m not mistaken, outside of the Mazda’s recent EV, most of the EVs have had a range of 200 miles of range.
wmb – that may be the case that the existing EV plant in Mexico makes it easier to assemble the Wagoneer there. Though I think the wages still played a huge role in that decision, even on the Wrangler being down there. But if EV and/or hybrid is to be the future, which for now they all still seem hell bent on despite all obstacles and contrary facts, then it should be troublesome to the UAW that they are effectively excluded from the plants where said future is being made. Maybe in their contract negotiations they should have secured more EV assembly foothold in the states. Be a little forward thinking.
DailyDriver — I totally agree and that was a point of contention when Ford put Mach-E assembly in Mexico. In the previous labor talks, the UAW was laser focused on keeping their employees working at existing Ford plants. Even though Ford had already announce they were building the Mach-E, but had not said where, the UAW didn’t iron down or make the sure that it would be built in the US. Then, after all the contracts were sign, Ford announced they were building the Mach-E in Mexico. I get it, those talks have a lot of moving parts and a number of different points to focus on, so it’s not surprising that something fell through the cracks. The good thing was, they were about to keep the current manufacturing where it was, get some promised future product for those plants and held on to jobs there. With the Mach-E being a new product at the time, they didn’t loose jobs going to that plant, but Ford created jobs in Mexico. I believe the same is true with the Wagoneer S, but I’m sure the UAW would have loved if those new jobs were found on this side of the boarder, yet not they didn’t loose jobs either!
Here is the thing, as we all know, if done right, this eventual move to BEVs can do much regarding public perception of an OEM. When one looks at Tesla, Rivian and Lucid, for example, one can not help but see that they have made a statement for themselves! While Tesla may, arguably, have quality issues, their EV hard and software works and they are envy of many, if not most, of the legacy OEMs. What would it say of Cadillac, if their Celestiq, Optiq and Escalade IQ were introduced without a hitch and lived up to every promise they have made about those vehicles? It would reset the table for a lot of what people say and think of the brand! That’s why this talk of Stellantis doing a Jeep for $20-25K, with only 100 to 150 miles of range is so puzzling. Most of the places that die hard Jeep fans like to go off roading can be more then 100 miles one way, so they may not take this vehicle seriously. It would be far better to do a vehicle like that under a different brand, here in North America, IMHO. For getting it wrong can be just as bad, if not worst, then if they got it right. Getting it right builds hope for the next product, if the current one does not fit the costumers life style. The Lucid Air builds excitement for the Gravity and the R1T and R1S, does the same for the R2 and R3. When you get it wrong, though, it could kill all hope for what the OEM does next! So their is a lot of pressure for Stellantis to get the EV Charger, Wagoneer S, Recon and the Ram REV and their eventual $25K EV right, or their fans and the public may turn on them, more then they already have in many respects.
“Is Tesla spinning off some businesses” it is called xAI. I understand already $6 B capital raised.
“Elon . . . for Trump and Republicans” Not in any recent Tweets but then I don’t find Twitter/X to be useful. Too much noise. But if I see Musk post some political nonsense, I’ll send Biden another donation.
After having actually seen the impressively compact Lucid motor, I’m not astonished that it’s getting an established OEM as customer. I’m really curious how small a generator of the same design, say for 150-200hp, could be.
wmb- I really don’t think any buyers of this 25K jeep based on the Opel and Vauxhall Frontera and Citroen e-C3 are doing much if any serious off-roading. This is a small SUV built for inner city commutes. So the range is likely just to get the price down in that 25K range. Which for someone with a 15-20 mile commute per day and home charging a vehicle like this will work fine. You have to remember people expect a 250+ mile range because with gas vehicles no one wants to fill up every other day. So with that range you can typically go days if not a whole week on a fill up. But if you can plug your vehicle in every night and grab 12+ hours of charging how much range do you really need in a single day? I think getting an affordable EV out there is a good decision, but it only works for the users with home charging. So as long as buyers dont buy it simply based on price but also have the home charging and fairly short commutes it could work perfectly fine. Question is are there that many buyers that fit that mold?
I’ve been saying for some time that if someone made an enclosed 3 wheeled EV with 150 miles of range and did it for under 25k I would buy it for a go to work vehicle. Being classified as a motorcycle gets away from many of the federal requirements that add cost. 3 wheels reduces weight and complexity. The lightness and smaller battery range helps reduce cost. I only need it to seat 2 people. I don’t care about all the gadgets like AV sensors and cameras. Just give me an HVAC and decent infotainment system and comfortable quite ride and I’m in. Because that’s all I would ever use an EV for. Keeping my ICE vehicles for trips hauling and towing.
Lucid may find themselves as a motor company and get out of the car business altogether. Which might not be a bad move for them in the long run. I think many of these EV companies are going to struggle to make the stretch into a EV dominate market. We are further away than many hoped it would be and can they make it on fairly light sales until the market really takes off. Or can companies like Tesla transition and maybe offer a hybrid? I doubt Tesla would ever do that but the other like Lucid or Rivian might have to.
Here is a great, though long, 1:12:25 video about the Lucid motor, compared to, though they didn’t say their names, Tesla and Porsche. They have some seriously cool design in the motor, keeping weight down and efficiency up. Also, as I would have expected, it runs at quite high rpm, up to 20,000. The gear reduction is 1:7 I skipped through quite a bit of the video, like most of the basic physics lesson at the beginning.
https://youtu.be/U7IHZxNC6hc?si=nigUSiTzVA_poDm7
Yeah, supplying motors with controllers could be a very good business for Lucid.
Probably the lowest range EV sold in the US is the Mini SE. The outgoing one has an EPA range of only 114 miles, but the new one for 2025 will be closer to 200.