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Runtime: 12:11
0:00 Trump to UAW’s Fain: You’re Fired!
0:44 Trump Welcomes Chinese Auto Plants in U.S.
1:28 Ford Axes EVs, Adds Super Duty to Oakwood Assembly
2:48 GM Sinking Fast in China
4:19 Is China’s Price War Ending?
5:10 Tesla Sales Drop in California…
5:52 …And Across the U.S.
7:19 Many Chinese Don’t Like Robotaxis
8:33 VI-Grade Unveils Virtual Proving Ground
9:18 New Land Cruiser Debuts in China as The Prado
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TRUMP TO UAW’S FAIN: YOU’RE FIRED!
Last night former President Trump gave his acceptance speech to become the Republican Party’s nominee for President and while we try to avoid politics, Trump actually had quite a bit to say about the automotive industry. First of all, he told UAW members that UAW president Shawn Fain should be fired immediately. He said the UAW should be ashamed for allowing China to build auto plants in Mexico with plans to ship cars to the United States. Previously, the UAW endorsed Biden for president and Fain called Trump a scab.
TRUMP WELCOMES CHINESE AUTO PLANTS IN U.S.
Trump also said he would welcome the Chinese to build those plants in the U.S. instead of Mexico. And threatened new tariffs of up to 200% if they didn’t do so. He also promised to get rid of the U.S.’s EV mandate his first day on the job. Of course, we have to point out that there is no EV mandate in the U.S. There are emissions and fuel economy regulations, which make it almost impossible for an automaker to meet them without having EVs in their lineup. But no mandate. If Trump tried to overturn those regulations there would likely be court fights that would go on for years. Even so, his administration could have a big impact on slowing EV adoption.
FORD AXES EVs, ADDS SUPER DUTY TO OAKWOOD ASSEMBLY
And in another sign of uncertainty over EVs, Ford announced it will retool its assembly plant in Oakwood, Ontario to make Super Duty trucks instead of electric SUVs. Ford says it can’t keep up with demand for Super Duty trucks despite running its other truck plants on max overtime. So, the Oakwood plant will be tooled to make 100,000 Super Duty trucks. Ford will also increase V8 production at its engine plant in Windsor, Ontario, and will increase production of transmissions, axles and components for the trucks at plants in the U.S. The Oakwood assembly plant in Canada was going to make 3-row SUVs for Ford and Lincoln, but those plans were delayed due to weaker demand for EVs and because big EVs need big expensive batteries. We also need to point out that this move helps protect Ford in case of a UAW strike at the end of the current contract. Last fall, the union damaged Ford financially by striking its Kentucky truck plant which makes Super Duty trucks. That’s the most profitable plant Ford has. So with a second source in Canada, Ford is protecting itself against any future UAW strikes.
GM SINKING FAST IN CHINA
China’s transition to EVs is crippling General Motors’ joint-venture with SAIC. The JV has the capacity to build 1.9 million vehicles a year but through the first half of the year, it has only produced 210,000 vehicles, down 54% from a year ago. And in June the downward pace accelerated with production being cut by 70% to below 28,400 vehicles. In 2017, SAIC-GM sold 2 million vehicles. Last year that fell to 1 million. And in the first half of this year, deliveries plunged 50% to only 225,000 vehicles. EVs are a big reason for the drop. While the JV has expanded its EV lineup over the last two years, car buyers just aren’t interested in them. SAIC-GM is averaging below 10,000 EV sales a month. Chinese consumers are increasingly turning to Chinese brands because they offer better connectivity, infotainment and driver-assist technology than foreign legacy automakers.
IS CHINA’S PRICE WAR ENDING?
Is the EV price war coming to an end in China? Not likely, but BYD is coming out with a slightly updated version of the Seagull that has a slightly higher starting price. While we only have the one picture of the refreshed model, it’s not all that different from before, other than new wheel designs, a few interior options and 360-degree cameras. The new Seagull will launch next month in China with a starting price of roughly $9,900, which is about $300 more than before. But it only tops out at $12,000. Through June of this year BYD has sold more than 167,000 Seagulls in China, so that extra $300 would have generated an extra $50 million in revenue.
TESLA SALES DROP IN CALIFORNIA…
California is one of Tesla’s most important markets, accounting for 10% of its global sales. But for the third straight quarter registrations dropped. According to the California New Car Dealers Association, Tesla’s registrations were just over 52,000 vehicles in the second quarter, down 24% from a year ago. Meanwhile, the overall BEV market was down 1.3% in Q2. And in the first six months of the year, Tesla’s California registrations are down 17%. The Model Y is still the best-selling vehicle in California, but sales are dropping fast.
…AND ACROSS THE U.S.
And Tesla’s problems are not just in California. According to S&P Global Mobility, Tesla’s U.S. registrations in May were just over 48,500 vehicles, which is down 15% from a year ago and is the fourth straight month its U.S. registrations have dropped. Tesla’s share of the EV market has slipped from 60% a year ago to 46% this year. But the automaker isn’t sitting back and is getting aggressive to help boost sales. This morning Autoline got a promotional email from Tesla offering 1.9% loans for the Model Y. And while Tesla is slumping, the BEV market in the U.S. is growing faster than the overall market. S&P Global reports that EV registrations were up 9.6% in May to nearly 105,000 vehicles. While the overall market was down 0.7% to just under 1.4 million vehicles. BEVs now account for 7.5% of the U.S. market. Ford was a distant second to Tesla with just over 7,000 EVs registered in May. Kia was hot on its heels with more than 6,800 registrations and Hyundai was next with just over 6,000. And Rivian rounds out the top 5 with more than 5,100 EV registrations.
U.S. MAY 2024 EV REGISTRATIONS | |
---|---|
Tesla | 48,587 |
Ford | 7,024 |
Kia | 6,868 |
Hyundai | 6,027 |
Rivian | 5,172 |
Source: S&P Global Mobility |
MANY CHINESE DON’T LIKE ROBOTAXIS
Looks like Robotaxis in China are going through the same kinds of growing pains seen by operators in the U.S. CarNewsChina reports that the city of Wuhan has accumulated 300 complaints on its traffic management website with stories of robotaxis clogging up streets and intersections. A viral video even showed one getting confused by a plastic bag, so it just stopped in the middle of the road. Taxi drivers are also calling on cities to limit robotaxis because they say they’re cutting into their number of rides, kind of like taxi drivers pushing back against Uber and Lyft in the U.S. Price is a main motivator in the reason to switch. Without the need for a driver, robotaxi operators are charging half the price of a regular taxi in some cases. And with available discounts it’s possible to take a 5 kilometer or roughly 3-mile ride for as little as $0.35 cents. Reports say at its peak, robotaxi operator Apollo Go is averaging 20 rides a day per vehicle, which is slightly more than taxis with human drivers.
VI-GRADE UNVEILS VIRTUAL PROVING GROUND
Automakers are turning to simulation to develop new vehicles much faster and cheaper by iterating and testing designs in the virtual world. And VI-grade, a German company that makes driving simulators, just came out with what it calls a virtual proving ground. It has a high-speed oval, highways and country roads, cobblestones, dirt roads, dry roads, wet roads, different gradients, a handling track, a rallye track and more. We’ve driven several of VI-grade’s simulators and they’re super realistic. And while virtual proving grounds are not going to eliminate real proving grounds anytime soon, they sure will cut down on how much testing has to be done in the real world.
NEW LAND CRUISER DEBUTS IN CHINA AS THE PRADO
An off-roading icon is about to hit China. Gasgoo reports that Toyota and its joint venture partner FAW started building the all-new version of the Prado, otherwise known as the Land Cruiser, at their plant in the country. It’s the same as the one that debuted in other parts of the world about a year ago. The same digital screen array, multi-terrain driving modes, the same assistance systems and 2.4L 4-cylinder hybrid powertrain. Pricing is about the same too. Roughly $60,000 – $75,000.
But that brings us to the end of today’s show. Thanks for making Autoline a part of your day and I hope that you have a great weekend.
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Ford’s plant, in Ontario, where the Edge was made, is in Oakville, not Oakwood.
SF should be fired for abuse of power… i.e., channeling UAW resources to family and cronies, flying 1st class during the strikes, and punishing the whistleblowers. I’m not a lawyer, but if his actions are akin to racketeering, then he may also face criminal charges.
I love it! Trump blaming Fain for not stopping what foreign companies from China, do in the foreign country of Mexico. Like the UAW has any influence on that! And like any president can just fire a duly elected union. Like ALL professional politicians, both Fain and Trump have super inflated egos and no idea of what is and is not in their control. I’m shocked they don’t get along better.
Much as I am a fan of EVs, it will be good to get the Oakville plant back producing. I wonder what happens to thousands of auto workers when there is a multi-year shutdown. Probably not good and not their fault.
The China Toyota LC, like in other markets, gets a base 4 cylinder. It s is amazing to me how Volvo to all that flack fineness they announced that they would only put 4 cylinders in their models, from the XC90 to the C40, before they moved to all electric driver trains. Now, from luxury vehicles to mass market OEMs, from the few remaining sedans to CUVs, SUVs and crossovers, to compacts and all the way up to full-size vehicles, 4 cylinders are the engine of choice, especially in base models! The winds of change.
Kit — Yesterday you mentioned that if Jaguar were to sell an updated/replacement XJ EV, if it should have any type of success, it would sell for 7-Series and S-Class money, but it or any other models might not do much better, especially at Bentley type of transaction prices. I tend to agree with you on that point of view. While they have had success with their more expensive Portfolio, Super and Daimler models, I would imagine they were only fractions of their XJ sells. Yet, what I could see succeeding, is a full-size all weather SUV EV, that complimented their XJ sedan, as their sells leader and a sport car EV, in the vein of the XK or E-Type. Perhaps even a fourth model, an extremely limited halo vehicle of some kind, and if they could move a total of 10,000+ vehicles a year, Jaguar could be on the right side of the dirt when it comes to their existence. I mean, even Lucid was able to move over 6000 of their Air sedans, as a upstart, though a very good one. While that may not be enough sells to support a brand, and I’m sure their Gravity will help them remain solvent, would it be a stretch to think that the storied Jaguar with three, maybe four, competent, stylish and drivers oriented vehicles, could sell 12-14K vehicles around the world? Especially, since Mercedes sells more S-Class sedans in the US alone! Just a thought.
wmb, XC90 being all 4 cylinder is nothing new. I didn’t check how far back, but at least back to 2020.
https://www.fueleconomy.gov/feg/Find.do?action=sbsSelect&id=40924&id=47243#
re. Jaguar, all I can say is I wish them luck, but it’s not looking good.
Kevin- I think you may want to read the transcript. Trump did not assume he had the authority, nor did he try and fire Fain. His statement was “He should be fired”. A statement anyone could make. They obviously do not like each other and yes, I agree that his statement about the UAW should be ashamed that Mexico plants want to build China cars is probably not anything the UAW is in support of either, but Fain supports Biden so Trump in typical fashion grasps at anything related that’s negative. Thats something China is trying to do to get around tariffs and has little if anything to do with the UAW.
Shawn Fain was elected by the UAW membership, and I doubt that he can be “fired” until the end of his term, I think 2026. I don’t know if there is an “impeachment” process to remove a union officer, but if there is, I don’t see it being used.
No such place as Oakwood, its Oakville, Ontario Canada.