AD #3880 – Corvette Stingray EV Due In 2029; Tesla Can Sue Over Direct Sales Ban; BMW Removes Humans From Automated Paint Shop

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

CORVETTE STINGRAY EV DUE IN 2029
EV programs keep getting delayed as automakers worry about customer demand and trying to make a profit on electrics. And it looks like that includes the Corvette program. Two years ago, Autoforecast Solutions reported that a Corvette-branded EV would go into production at GM’s Grand River plant in Lansing, Michigan in 2025. Most speculated it was an electric SUV. But now, Autoforecast says that D-segment SUV ‘Vette has been pushed back to June of 2030. And in February of this year, it said production of a Stingray EV would start in 2028, also at the Grand River plant. Now Autoforecast says that will happen in June, 2029. That plant is also scheduled to get an electric Buick D-segment SUV and an electric Cadillac sedan. All of them will likely be built on GM’s Ultium platform, which suggests that an all-electric version of the current Corvette on the current platform is not going to happen.  

TESLA CAN SUE OVER DIRECT SALES BAN
Good news for Tesla. The automaker can now legally challenge the state of Louisiana’s ban on direct sales to customers. Two years ago, Tesla sued the Louisiana Motor Vehicle Commission, as well as dealerships owned by individual commissioners and the Louisiana Automobile Dealers Association, accusing them of illegally banning direct sales and restricting leasing and service of its vehicles. That suit was originally dismissed by a lower court but a federal appeals court has reversed that decision. Even though the Model Y was the best-selling car in the U.S. last year, 48 states either somehow limit or ban direct sales. Tesla can only operate stores or galleries in 29 states and some even ban it from operating service centers. With Tesla’s sales sputtering, it needs to open up more markets. We’ve wondered for years why Tesla didn’t press this all the way to the U.S. Supreme Court since it could be an illegal restraint of interstate trade. And maybe this time around it will fight harder.

CONTINENTAL CLOSER TO SPINNING OFF AUTOMOTIVE DIVISION
It’s tough out there for automotive suppliers. New vehicle sales are weaker than expected this year. They invested heavily to make EV components, but sales volumes are well below forecasts. And automakers are looking to in-source more components and software. That’s why Continental, one of the largest automotive suppliers in the world, is looking at spinning off most of its automotive operations. It would hold onto its tire business and what it calls ContiTech, which specializes in active safety and vehicle networking technology. The part that could get spun off makes brakes, chassis parts and other components. Bloomberg reports the spin-off would be a bonanza for shareholders in the company that is not getting spun off, which it refers to as Conti RemainCo. It would deliver €6 billion to shareholders in dividends and share buybacks. Continental is expected to make a decision on the spin-off by the end of the year.

CONSUMER REPORTS RANKS BEST USED CAR BRANDS & MODELS
With more and more car buyers turning to the used market because of the high price of new vehicles, Consumer Reports is now providing ratings and recommendations for used cars. Its rankings are based on the reliability of 5 to 10-year-old vehicles from its annual auto survey. That survey is given to its members where they report any issues they’ve had with their car in the last year. Using that info, Consumer Reports rated the most reliable used car brands and Lexus and Toyota topped the list of 26 brands by a wide margin. Mazda, Acura and Honda round out the top 5. Stellantis didn’t fare well with four of its brands at the bottom of the list. Tesla was at the bottom as well in the 24th spot. Consumer Reports also named its top 10 picks for used cars. We don’t have time to list all the models but Toyota and Mazda account for half of them.

HUAWEI LANDS CONTRACT WITH BYD BRAND
Chinese tech giant Huawei has had a lot of initial success breaking into the automotive industry. It’s already established a couple of joint ventures and has several tech partnerships that has now expanded with the biggest automaker in China. BYD’s Fang Cheng Bao brand signed a deal with Huawei to use its lidar-based driver assistance system in a new, large off-road SUV, called the Bao 8. It says the system offers enhanced capabilities over the previous version and supports things like point-to-point navigation and remote parking. Despite signing the official agreement now, the two companies have already started full-scale testing and the Bao 8 is expected to hit the market sometime this quarter. 

HUAWEI LOSES $3-4,000 PER CAR
But like most other EV makers, Huawei is losing money on every vehicle it sells. It has a joint venture with Chinese automaker Seres, called Aito, that sells an SUV, called the M7. And Huawei claims it loses about $3,000-$4,000 on every one. What it really needs is more scale. We estimate Tesla started turning a profit when sales topped 50,000 units a quarter. And Huawei has a better chance of succeeding because it has both technology and joint venture partnerships. One way it’s working on boosting sales is coming out with cheaper models. The M7 currently uses the same driver assistance system that Fang Cheng Bao is getting. But it just launched a Pro version that features a vision-based system, which eliminates lidar and makes it cheaper. Prices for the M7 start at about $35,000.

BMW & TOYOTA EXPAND HYDROGEN PARTNERSHIP
It’s too expensive for automakers to develop future technology on their own, so Toyota and BMW are expanding their partnership in fuel cell vehicles. Toyota has supplied BMW with a limited number of fuel cell components since 2012 and under the new deal, Toyota will supply more key parts including hydrogen tanks and fuel cell systems, and they’ll collaborate on developing a hydrogen refueling network in Europe. BMW is aiming to begin mass production of its iX5 hydrogen vehicle in the next few years. 

BMW REMOVES HUMANS FROM AUTOMATED PAINT SHOP
Speaking of BMW, it’s getting rid of humans from the car painting process. It says the paint shop at its plant in Hungary will be fully automated when its Neue Klasse of vehicles start rolling down the line at the end of this year. Initially it will be able to paint 30 vehicle bodies an hour, but says that can be increased significantly. What’s more, the paint shop in Hungary will be the first in BMW’s network to operate without fossil fuels. Instead it will run entirely on electricity, cutting its CO2 emissions. The downside is that it will consume more power, but BMW says it’s trying to offset that by getting all the power needed to run the plant from renewable energy sources. 

GM & FORD WANT THEIR OWN BANKS
GM and Ford want to get into the banking business. Toyota and BMW are already there. These are what they call industrial banks, which can make loans, but do not accept public deposits and do not have local branches. The loans they make are to dealers, customers, company employees and their family members. While the finance arms of GM and Ford already arrange financing for dealers and customers, having their own bank would provide them with more stable funding and allow them to offer more financing options. Automotive News reports that, for unknown reasons, GM just canceled its application for an industrial bank, but plans to resubmit it. Ford has also applied to open its own bank. And we sure find it interesting that automakers want to run their own banks.

FISKER EV CHARGER FIRE SALE
Need an affordable home EV charger? Well, you might want to check out Fisker’s website. Since it’s going bankrupt, Fisker has a fire sale going on its existing inventory. And that includes its home charging unit, which is made by a company called Wallbox. Now listed for $250, it’s over half off the previous price. And from what we can find, it looks like a well rated charger.

But that brings us to the end of today’s show. Thanks for tuning in.