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Runtime: 10:43
0:00 PHEVs Selling Faster Than BEVs
1:15 Chinese EVs Take EU By Storm
1:53 Tesla Recalls 1.8 Million Cars
2:23 Wall Street Analyst Almost Crashes with FSD
4:09 Stellantis Could Sell Maserati
5:10 BYD Slashes SUV Price By $7,000
6:10 GM Eyes Brazil for Blazer EV
7:01 Dangers of Deep Sea Mining for EV Materials
7:55 XPeng Readies to Launch Robotaxi
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
PHEVs NOW SELLING FASTER THAN BEVs
2024 could turn out to be the Year Of The Plug-In Hybrid. Bernstein reports that global PHEV sales are up 50% through the first five months of the year, compared to only 9% for BEVs. In China, the difference is even more dramatic. In the first half of the year, PHEVs, including extended range electrics, shot up 70%, compared to 16% for BEVs. If this keeps up, PHEVs will outsell battery electrics in China before the year is over. J.P. Morgan says PHEVs could account for 60% of NEV sales in China by the end of the decade. It also cut its forecast for battery demand in China by 10% since PHEVs use smaller batteries than BEVs. The appeal of PHEVs is obvious. Starting prices are lower than BEVs and don’t pose any range anxiety. BYD, for example, sells two PHEVS, the Qin L and Seal 06, that cost about $14,000 and have a driving range of up to 1,300 miles.
CHINESE EVS TAKE EU BY STORM
Meanwhile, while PHEV sales are soaring in China, Chinese BEVs are taking the European market by storm. They now have 11% of the EU EV market and they’re just getting started. In May, Chinese EV sales in Europe shot up 72%, growing twice as fast at European brands. Part of this was because Chinese automakers were racing to sell as many EVs as they could in Europe before they got hit with new import tariffs. But they’re also looking to set up assembly operations in the region to side step those tariffs.
TESLA RECALLS 1.8 M CARS
Tesla is recalling more than 1.8 million vehicles in the U.S. over hood latch issues. But again this was fixed with an over-the-air update, which Tesla already issued. The problem was with software not recognizing an unlatched hood, so it could fully open and block the driver’s view. Customer complaints in China led Tesla to investigate the problem back in March. And after more studies it decided to issue a recall in North America.
WALL STREET ANALYST ALMOST CRASHES WITH FSD
And in other Tesla news, could this have an impact on the investment community’s outlook on Full Self Driving? William Stein, a Tesla analyst that works at Truist Securities nearly crashed his Tesla while using FSD in New York suburbs on a clear day. He says that his Model Y “accelerated through an intersection as the car in front of us had only partially completed a right turn.” He was able to avoid the accident by intervening himself. Stein was also surprised he longer had to tug on the steering wheel to keep FSD engaged and it also continued to work when he took his eyes off the road. It took the system 20 to 40 seconds before issuing a warning. But his experience wasn’t all negative. Stein was impressed with how well it adapted to lane closures, potholes and traffic flow and said the driving felt more natural. But ultimately Stein said that FSD is “truly amazing, but not even close to ‘solving’ autonomy.” Tesla didn’t comment on the report but yesterday Elon Musk posted on X that it is releasing an updated version of FSD, so perhaps some of these issues will be addressed. But if the investment community isn’t sold on FSD it could have a big impact on Tesla’s future earnings.
STELLANTIS COULD SELL MASERATI
After a rough first half of the year, Stellantis CEO Carlos Tavares said he could start shutting down brands that don’t make money. We think Maserati and Chrysler would be easy choices and it looks like one of those brands is already hanging on by a thread. Maserati only sold about 6,500 so far this year, down roughly 57% compared to last year and it posted an operating loss of 82 million euros, which the CFO of Stellantis called “disappointing.” She also said “there could be some point in the future when we look at what’s the best home for [Maserati].” Dropping three models from its lineup did play a role in Maserati’s losses, but those models won’t get replaced right away and it seems like Stellantis is already looking for a new home within the group or possibly even selling off Maserati altogether. What do you think the best fit would be? Should it be sold to Ferrari, or who? Let us know in the comments.
BYD SLASHES SUV PRICE BY $7,000
Premium off-road vehicles are pretty popular in North America and automakers can make a pretty good profit selling them. BYD may have been trying to replicate that success in China with its Fang Cheng Bao brand, but it seems like buyers aren’t going for it. Sales of the Bao 5, which is a 2-row plug-in hybrid SUV, have dropped significantly this year and since August of last year it’s only sold about 25,000. And remember earlier in the show we said PHEVs were one of the biggest growth sectors in China this year. So, now the brand is pivoting to try and attract more mainstream customers and is cutting the price of the Bao 5 by almost $7,000, which brings its starting price to roughly $33,000. Fang Cheng Bao plans to launch a larger PHEV and electric SUV this year, but a price cut by that much on its smaller, more affordable vehicle is not a good sign for these upcoming models.
GM EYES BRAZIL FOR BLAZER EV
Speaking of BYD, it looks like it showed more established automakers that there’s actually a market for EVs in Brazil. In the first three months of the year it sold about 15,000 electrics in Brazil and that only includes one month of the more affordable Dolphin Mini (aka the Seagull), which went on sale in March. Now GM is starting to bring its Ultium-based EVs to the country when the Chevy Blazer EV goes on sale tomorrow. It’s only going to offer the RS version, which comes in both rear-wheel and all-wheel drive. It didn’t reveal pricing, but in the U.S. it starts right around $56,000. It will be interesting to see how Brazilians react to the model. But we think something like the Equinox EV might be more popular.
DANGERS OF DEEP SEA MINING
They’re called poly-metallic nodules and they sit about 2 miles deep on the ocean floor. They’re lumps of rock that contain cobalt, nickel, copper and manganese. In other words, they’ve got the materials needed to make batteries for electric cars. And all you have to do is pick them up. But they’re also located in habitats for fish and sea life, and some scientists believe that these rocks also generate oxygen for the planet. Now the debate amongst environmentalists is around the potential catastrophe of global warming, and whether mining these rocks is worth the tradeoff to fight it. A company called The Metals Company wants to mine these rocks and if you’d like to learn more about it we interviewed their CEO, Gerard Barron, four years ago and we’ve got a link to that video in the description box and transcript.
XPENG READIES TO LAUNCH ROBOTAXI
Chinese EV maker Xpeng is planning to launch a robotaxi in 2026. There aren’t many details about the model but CarNewsChina speculates that it likely will use a vision-based system because Xpeng is pivoting away from lidar. While all of its models are currently equipped with lidar, reports say it’s planning to adopt a vision-based system for its future vehicles. Xpeng’s CEO has also previously said that end-to-end neural network algorithms like Tesla uses is fine for L2 and L3 autonomous driving but its unsuitable for L4 if it’s not coupled with large model data. Xpeng will develop and manufacture its robotaxis but unlike Tesla it will not operate them itself and it will partner with another company.
And that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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Maserati would be a good fit with Fiat as a “premium” brand for them, except Fiat is part of Stellantis, not a seperate company. If Ferrari wanted a “lesser” brand, Maserati would fit, but I doubt they want that.
The move that makes the most sense is for Stellantis to sell Maserati to Ferrari. Ironically they were previously tied together but FCA spun-off Ferrari in 2016. John Elkann and the Agnelli family still own controlling interest of Ferrari so they would still keep it all in the family. I believe they would rather do something like this for their iconic Italian brand versus selling it to a Chery or Geely.
I think Tesla should consider Maserati. This would provide Tesla with some great platforms to join into the hybrid market and real luxury vehicles not just on price. Also providing some European facilities in Italy. As their sales slump and it looks like PHEVS will surge for a while, it could help bridge the gap for Tesla buyers that are not ready to go all electric. I’m sure if Ferrari would still like to continue to sell engines as they have since 2001. But as the exotic car industry has started to build SUV/CUVs this could be a great fit for an EV only company that might just need some hybrid action. Sadly, Maserati isn’t going to give anyone much volume without a drastic change and affordable option. Maybe Tesla could pull it off.
It seems to me that Chrysler may be interesting for a Chinese automaker to take over, even more so if a North America-based assembly plant can be part of the deal.
Maserati: I don’t know.
@Lambo: Maserati to TESLA seems like a good idea, which I had not thought about. It could also open the way to less bland designs for TESLA/Maserati vehicles.
@Kit – Fiat would be interesting. What about Alfa? And Ferrari might work just so it can get SUVs.
@lambo – I was not expecting anyone to suggest Tesla. It’s definitely a unique thought. I wonder what the cost would be and if Tesla would want to spend it?
@Wim van Acker – No doubt a Chinese company would want to swoop in on Chrysler. I find it hard to believe that an American brand would go to the Chinese, at least anytime soon, but maybe a company like LeapMotor, which just formed a partnership with Stellantis in Europe, would have a better chance. Maserati might be the easier purchase for a Chinese company and maybe even the more appealing brand, too.
I think Stellantis should merge Chrysler, Maserati, Lancia and DS into one premium brand with the underlying platforms coming from mass market brands within their portfolio. All management, marketing, etc. being combined would save cost.
Stellantis acts as if the brand is responsible for its own problems. The actual problem is that the cars provided under that brand are few, crap and unfocussed. Maseratis are widely viewed as gorgeous but totally unreliable. They depreciate like crazy for the first 5 years and are impossibly expensive to repair. Whats not to like? Chryslers are just …. nothing. No outstanding characteristics of any kind. At least in the old days, Chryslers were big and well engineered, even if they were also thirsty and poor handling at the same time. Bottom line is that if Stellantis can’t give each brand a distinct and desirable personality, they may as well forget all of their brands.
Maserati to Tesla could make sense, sort of, but I don’t see it happening. Maserati and Chrysler to a Chinese company seems more likely, with most Maserati facilities in Italy, and Windsor Assembly part of the deal.
Kevin a, Chrysler’s one remaining product, Pacifica, is actually pretty good. I know several people who have them. It’s a good value, if bought in a low-mid trim level. It drives well enough, gets competitive mpg for a non-hybrid van, and from my friends’ experiences, is reliable.
Regarding Chryslers of old, my first car was a 1957 Chrysler. It had the best big engine powertrain in the world at the time, but the body was rattly and rust prone. Actually, it handled better than its direct competition, like Buick and Oldsmobile, but that’s not saying much.
It’s interesting that all commenters are assuming a brand would be sold. In Chrysler’s case, it would most likely just be shut down. The minivan would be sold under another brand and the Chrysler brand would just disappear from Chrysler Jeep Dodge Ram dealerships. There isn’t really anything to sell there as all of the assets used to create Chrysler vehicles are used for other Stellantis brands. Ditto for the assembly plant, which would continue producing vehicles for sister brands. Another interesting thing is how “profitability” is determined. Chrysler only sells one model right now, but their sales and marketing costs are nearly zero. It’s possible that it is considered a profitable brand in the Stellantis corporation.
Maserati is a much more complete unit and could be sold. With Tesla’s longstanding branding of environmental stewardship, I doubt Elon would be interested in buying an ICE brand. Especially one with a very poor track record of sales and profits. Better to just devote resources to growing the Tesla empire.
I think Mazerati lost its mojo kind of like Pontiac did at GM. Mazerati used to be a fine alternative in the high end market the same as Pontiac had the one up on its significant others, they let that slide and the rest may be history at Mazerati as well. Maybe someone will buy them but they have a lot of catching up to do.
I doubt Tesla would consider Maserati either but a revamp of their electrical architecture and maybe switching them up to 48V could spark new interest and maybe reliability. Plus, with all the carbon credits Tesla gets they could probably sell them as a non-hybrid and still avoid any penalties. But a clean sheet hybrid would be interesting to see what they could do.
Brands are sold, as with Volvo to Geely and JLR to Tata. Yeah, a bunch of probably mostly obsolete manufacturing facilities with with them. Chrysler would need to have some “value” as a brand for anyone to want to buy it, but maybe it doesn’t have any value as a brand. That’s sad, to me, especially since Stellantis North America is still “Chrysler Group” to a lot of us.
It so happens, that Chrysler’s only vehicle sold 120,665 units in 2023, and sales are up for 2024. Meanwhile, one of the brands that was “sold,” Volvo, sold barely more, 128,701 in the US with 6 or 7 models. Volvo is much more a global brand, though. JLR’s total US sales were less than 2/3 of Pacifica sales, but global JLR sales are ~400K.
I would be very surprised if Tesla did hybrids, “clean sheet” or otherwise. They are clearly of the “NIH” mentality with their awful controls, no turn signal stalk, etc., so would be very unlikely to want to buy hybrid powertrains from Toyota, or anyone else. It would be totally crazy for them to try to design and make gas engines for hybrids, though they could probably make the rest of a good hybrid system, if they wanted to. I don’t see them wanting to. If their car business goes downhill too much, they will just concentrate more on energy storage products. That will always be a growth business, as it allows “part time” power sources like wind and solar to replace more coal, nat gas, and nuclear.
IMHO, when Maserati and Alfa Romero were downing business together, under the FCA group, it made more since. Maser was to do the full size and Alfa the compact, with the only over lap being the midsize Ghibli and the proposed midsize Alfa sedan. The Ghibli was to be priced like the sport and super-sedans from the German rivals, with the midsize Romeros competing with their standard vehicles. That never worked out and with Maserati abandoned the midsize market, with only their full-size sedan, sports car and convertible and SUV, while allowing Alfa to cover the midsize space, this seemed like the best case scenario for each brand! But with both Alfa and Maserati both doing their own super/hyper/exotic car, that seemed to muddy the waters of where the two brands are going. If Maserati is circling the drain, Alfa may not be far behind either. If Maserati is planning to compete with the Panamera with size, packaging, power and pace, Bentley and Rolls Royals on interior opulence, Maybach on price and with beautiful and style that is second to none, they may serve. That is a tall order, a really big ask, especially, as mentioned by others, the poor quality and repair issues they are constantly dealing with! They also “must” sale more vehicles, in much bigger numbers then they currently do!
As others have said, its hard to see any legacy brand buying Maserati or Chrysler. The same is true with Chinese OEMs, unless assembly plants come with them. What would make more since, with Maserati intending to go all EV in the next few years, would be to purchase a version of the Lucid Air and Gravity platforms, and sell a version of those vehicles. Maserati has a global foot print and the Air/Gravity currently do not. The Air has proved to be pretty reliable, especially compared to Maseratis. They don’t directly compete with each other and I wouldn’t imagine that any of the things that the customer sees or touches, would be anything that the two would have in common.
Maserati going to Ferrari does more good for Maserati and only adds cost to the prancing horse. The only way that I think Ferrari would have any interest in them, would be to save an Italian brand from going into the pages of history. Ferrari has everything Maserati has, but a slow selling sedan, but do they need one? While it would be sacrilege, Ferrari could make their own full size sedan and it would sell more then the one offered by Maserati!
If Ferrari sold a sedan, it would probably cost 2-3 times as much as the Maseratis. It might still sell in larger numbers.
What is Maserati anyway? Didn’t they used to compete with Ferrari and Lamborghini with exotic sports cars? Now, they have a couple expensive, but not-that -great sedans, a Grand Cherokee based SUV, and one or two others. The GranTurismo looks really good, though, at least in pictures. I’ve never seen one.
Growing up in the Midwest south of Detroit I can’t remember ever seeing a Maserati on the road. When I lived out in L.A in 2015-16 I would see them daily. However, the contrast in vehicles is like night and day between the two areas. Especially close to Toledo a loyal Jeep following with a very long and strong history (1941) that includes the UAW dating back to 1935. So, the domestic truck/SUV/Jeep market is dominate around here and when I first arrived in L.A. I was blown away by the amount of Toyota, Hyundi/Kia and Honda vehicles with a huge absence of trucks. With gas around $5 a gallon and parking a premium that was understandable. Didn’t really deter the exotic car owners though. I had no idea Maserati sold so many cars until I lived out there. Makes you realize that just what you see on the road isn’t a great indicator of what’s selling. Location can have a huge influence. Which is why I was surprised the Detroit three were so gung-ho on EV’s when you can clearly see around the whole Midwest the interest wasn’t there. I believe it’s even worse in the great plain states. The CEOs need to spend a little more time in places other the East and West coast.
I see that Maserati has a serious sports car, the MC20. Base price is $243K, with a V6. I’d think it would be a tough sell at that price.
Stellantis says it will offer buyout packages to many of its U.S. white-collar workers just five days after the company’s CEO said the auto industry is in the middle of a significant storm.
The company told salaried workers that eligible employees will get individual offers in mid-August. The offers will be limited to certain job functions that Stellantis not identify. It also wouldn’t say by how much it wants to cut the salaried workforce. The company has about 11,000 salaried workers in the U.S
https://www.msn.com/en-us/money/companies/stellantis-makes-buyout-offers-to-many-of-its-white-collar-workers-in-u-s/ar-BB1qUHVd?ocid=hpmsn&cvid=4269973b8c0d407492b5445f62927835&ei=135#comments
At the end of the day, I thought Stellantis was giving their brands time to prove themselves?! That was said only a couple years ago and the brands have yet to display what they had given them money to develop in that time. It just seems that, to protect his job, the CEO has walked back the promise and time frame he had given them to show progress! A shame!