AD #3929 – Jeep Starts Chopping Prices; Audi Drops More in U.S. & EU Than China; Honda Developing V3 Engine for Motorcycles

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

CHINA FILES WTO COMPLAINT OVER EU TARIFFS
China is ratcheting up its fight with Europe over EV tariffs and has filed a complaint with the World Trade Organization. Last week, the EU boosted tariffs on imported Chinese-made EVs up to 35% because it claims they benefit too much from government subsidies, giving the EV makers an unfair advantage. But China says the tariffs lack “factual and legal foundation” and violate WTO rules. The two sides have been negotiating alternatives to the tariffs but so far no agreements have been reached. And those tariffs typically lock in for a 5 year period. So, now China is putting the heat on Europe by lodging a complaint with the WTO to help settle their dispute.

U.S. OCTOBER SALES LOOK GOOD
While some automakers only report their U.S. sales on a quarterly basis, Automotive News says automakers sold about 1.3 million vehicles in October, up a strong 12% compared to a year ago. And the SAAR came in at 16.1 million vehicles. But there were two extra selling days in October this year, which skewed the numbers upwards. Also, inventory rose above 3 million units, the first time that’s happened since the Covid pandemic and chip shortage. And incentives shot up 71% to an average of $3,149 per vehicle. Amongst the companies that publicly reported sales, Mazda was on fire, with sales up more than 58%, thanks to strong incentives. The Hyundai group and Ford also had a great month. But Volvo and Toyota saw sales drop below where they were a year ago.

PARIS LIMITS TRAFFIC FROM CITY CENTER
Here’s a trend we’re starting to see more of. To cut down on traffic jams and air pollution, Paris is restricting vehicles from driving in the center of the city. Paris created a five-square kilometer or about 2-square mile “Limited Traffic Zone” that bans private vehicles from driving through it if their final destination is outside of the zone. Between 175,000-250,000 trips are made through the area every day. Residents that live in the zone and people with disabilities won’t face any restrictions and there are exemptions for buses, taxis and emergency and delivery vehicles. During the first six months the city will give out warnings to drivers who break the rules but after that it will issue fines of €135 or about $150.

TURNING LAMPPOSTS INTO EV CHARGERS
One way to inexpensively make EV charging a lot more convenient is to convert street lamps into Level II chargers. AT&T is partnering with an EV charging startup called Voltpost, that retrofits lampposts into internet-connected EV chargers. Voltpost says they don’t cost as much to install as traditional units, partly because it only takes one to two hours to put in the Level 2 chargers, which feature two or four retractable charging cables. The two companies have installed chargers in metro Detroit and will expand to New York and Illinois.

JEEP STARTS CHOPPING PRICES
To address declining sales at Jeep, down 8% in the U.S. in the first three quarters, brand CEO Antonio Filosa has made price reduction part of his plan to help turn things around. And it’s a move many think it needed to make. Through August, Jeep’s transaction prices have been $6,500 over the industry average. So, it’s cut price tags on the Compass, the Grand Cherokee and now it’s the Wagoneer’s turn. Base trims will see the smallest reduction, $3,000 off, bringing the starting price to $62,000, including destination charges. But other models, like the Grand Wagoneer 4X4 will get up to $7,000 off. 2025 Wagoneers with the new prices will start arriving at dealers before the end of the year.

  

AUDI DROPS MORE IN U.S. & EU THAN CHINA
Speaking of sales being down, many foreign automakers, but especially German luxury brands, have seen big sales declines in China. And while that’s dominated a lot of the headlines, Audi has actually performed worse in the U.S. and Europe. Through the first 9 months of the year its sales are down nearly 17% in the U.S. and roughly 10% in Europe, compared to an 8.5% decline in China. Audi blames limited parts availability and logistical challenges for why it dropped the most in the U.S. And as you would expect, this had a negative effect on Audi’s revenue and profits.

HONDA SHOWS VISION FOR EV SPORT BIKE
Honda is working on a new 3-cylinder engine for motorcycles that’s arranged in a V-pattern. It says the water-cooled engine is being developed for larger displacement motorcycles and even revealed that it’s testing out a version with an electric compressor, which it claims is a package that no one else offers in the world. But Honda is also planning an EV bike lineup. It showed off the EV Fun Concept, which is its vision for a future electric sport bike. It says the model is compatible with a CCS charger, so it could charge just about anywhere, and that it would aim for more than 100 kilometers or over 62 miles of range. Its other vision is for a future electric scooter, called the EV Urban Concept. Honda didn’t provide many details, but we think this would be a great application for its other EV motorcycle venture, swappable battery packs. The Japanese automaker is teaming up with GoCimo to test electric scooter rentals with swappable batteries in Sweden. Honda will provide GoCimo with a fleet of EM1 e: scooters to rent as well as the swapping stations and batteries, which kind of look like a big vending machine. The test kicks off in February and will last for a year.

FERRARI SALES DOWN BUT EARNINGS UP
Even though its sales fell 29% in China, Ferrari largely shrugged that off and went on to post higher earnings in the third quarter. It sold 3,383 cars globally which was down 2%. Yet its revenue rose 7% to €1.6 billion. Its EBIT rose 10% to €467 million, and its net profit of €375 million was up 13%. Ferrari says it offset the decline in car sales by selling a richer mix, i.e., more expensive cars, and by getting more customers to personalize their cars. It also saw a 20% jump in sponsorship for its Formula One and World Endurance Championship race teams, as well as merchandising and royalty payments. And despite the slight decline in sales, Ferrari says its order book stretches well into 2026.

SUPPLIERS ANNOUNCE LAYOFFS & PLANT CLOSINGS
Yet, while the future looks bright for Ferrari, two European suppliers announced layoffs and plant closings. Michelin says it’s going to close two tire plants in France by 2026, eliminating 1,254 workers. And Schaeffler, the big German supplier, says it’s going to lay off 3,700 employees in Europe, or about 3% of its workforce. On top of that another 1,000 employees will move to other locations and two unspecified plants will close. Part of the reason for the layoffs is the downturn in the European car market, another part is due to its acquisition of Vistesco, which used to be part of Continental. As we’ve reported before, Volkswagen plans to close 3 plants in Germany. Audi is closing an assembly plant in Belgium. And we’re afraid that this is just the beginning of a painful restructuring that’s getting underway in the European auto industry.

And that brings us to the end of today’s show. Thanks for making Autoline a part of your day.