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Runtime: 10:16
0:00 Trump Tariffs Could Cripple New Car Sales
1:05 WeRide Starts Robo-Shuttle Service
1:38 Pony.ai Tests Driverless Truck Platooning
2:03 Huawei Trials Self-Parking Cars
3:55 U.S. Finalizing Rules to Ban Chinese Tech
5:15 Waymo/Zeekr AV Spotted Testing in California
6:03 Refreshed Model Y Production Starting in Europe
6:17 Model Y Best-Selling Vehicle in China
6:56 EVs Set Sales Record
7:23 VW Group Sales Drop Slightly
8:14 Big Truck Makers Down in 2024
8:40 Hyundai EVs More Expensive in Europe
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
TRUMP TARIFFS COULD CRIPPLE NEW CAR SALES
Six days from now Donald Trump gets sworn in as President of the United States and the auto industry is stressed out over the tariffs he said he’s going to slap on imported cars and components. Trump has promised anything from 25% to 200% tariffs, which would impact every automaker and almost every automotive supplier operating in the U.S. Every traditional automaker imports vehicles and every vehicle in the U.S. uses imported components. So those tariffs would drive up the price of new cars, which would likely cause a drop-off in sales. Bloomberg reports the Trump team is trying to figure out how to enact those tariffs with the least economic impact. They’re talking about phasing them in by 2% to 5% per month. And while that may soften the blow, they would still end up crippling new car sales.
WERIDE STARTS ROBO-SHUTTLE SERVICE
The race is on between the U.S. and China to see who will dominate autonomous vehicle technology. While the U.S. has strong players, like Waymo, Zoox, Aurora and Tesla, China seems to be pulling ahead with actual applications. WeRide, which was founded in Silicon Valley and is traded on the NASDAQ, is headquartered in China and is about to open a robovan shuttle service at the Zurich Airport in Switzerland. It’s going to use a bus made by Renault and powered by WeRide’s AV stack.
PONY.AI TESTS DRIVERLESS TRUCK PLATOONING
Pony.ai is another Chinese AV company that started in Silicon Valley and is traded on the NASDAQ. It just got permission from the Chinese government to operate platoons of autonomous trucks, where a lead semi-truck with a driver is followed by other semis without drivers, which Pony.ai says can significantly reduce logistics costs.
HUAWEI TESTING SELF PARKING CARS
And Huawei, the giant Chinese telecommunications company that’s getting into the auto industry, just started a pilot program at the international airport in Shenzhen, where cars can autonomously park themselves. Drivers have to stop their cars in a designated area, then use an app to select a parking spot, also in a designated area. The car will then drive to that spot on its own, and if it’s occupied it will find another spot. Audi showed a similar concept years ago at CES in 2013, and there’s a pilot program at the Smart Parking Lab in Detroit that opened in 2021. But it looks like Huawei will be the first to commercialize the technology.
U.S. FINALIZING RULES TO BAN CHINESE SOFTWARE & HARDWARE
The Biden Administration is said to be finalizing rules today that will ban Chinese and Russian connected car software and hardware as well as from Chinese companies testing self-driving technology on U.S. roads. Starting with software in the 2027 model year and followed by hardware in 2029. But they’re not going to include Chinese software that was developed before the new rules, as long as it’s not being maintained by a Chinese company. That means some Chinese-made vehicles and vehicles with older Chinese tech, like models from GM, Ford, Hyundai, Toyota and VW, would still be allowed to be sold in the U.S. However, Polestar, which is owned by Chinese automaker Geely, hasn’t received a definitive ruling on where its vehicles stand, but it will likely have to file for a special exemption to sell in the U.S. But it’s going to be hard for any Chinese or Russian company to offer a vehicle in the market and the Commerce Department said it’s also planning to propose rules that would ban Chinese software and hardware in larger commercial vehicles, like trucks and buses. We think this will have a much bigger impact than any tariffs the U.S. could have implemented.
ZEEKR/WAYMO AV SEEN TESTING IN CALIFORNIA
But we wonder if it will have any effect on the robotaxis that Waymo is getting from Chinese automaker Zeekr, which is also owned by Geely? However, Zeekr’s CEO is confident it will be allowed in the U.S., claiming it will be the first Chinese car brand to enter the market. And thanks to Autoline viewer Shawn, great name by the way, we know that Waymo and Zeekr are already testing vehicles in San Francisco. This is the Zeekr RT, a purpose-built robotaxi that’s based around a new electric Zeekr minivan, called the Mix. One thing we notice is that it looks like the vehicle has a manufacturer’s plate from Michigan. That could be an indication of where they’re getting upfitted with all their AV sensors.
REFRESHED MODEL Y PRODUCTION STARTING IN EUROPE
It looks like the refreshed Model Y will first launch in China this March, but Europe won’t be far behind. Reports say Tesla has already started production of the new Y for the European market at its factory in Berlin.
MODEL Y BEST SELLING VEHICLE IN CHINA
And speaking of the Model Y, it was the best selling vehicle in China last year. It sold just over 480,300 examples, an increase of over 5% compared to the year before. That was less than 300 units ahead of second place, the BYD Qin Plus sedan. Tesla’s global sales were down slightly last year, but it set a record in China and the refreshed Y got a reported 50,000 orders on its first day. So, it could repeat as the top seller in China again this year.
EVs SALES SET RECORD
But it wasn’t just Tesla. Electric vehicles as a whole had a record year in 2024. According to research firm Rho Motion, sales of fully-electric and plug-in hybrid vehicles hit 17 million units last year, an increase of 25% compared to the year before. Not surprisingly, China accounted for most of the total with 11 million EV sales.
VW GROUP SALES DROP SLIGHLY
And speaking of sales, like the German luxury brands, the Volkswagen Group saw its sales decline last year. The automaker sold 9.03 million vehicles, a drop of 2.3% compared to 2023. It sold 3.2 million vehicles in Western Europe, which was slightly less than a year ago. Its sales in China were down 9.5% to 2.9 million vehicles. But sales in North America topped 1 million units, a 6% gain. The VW Group sold just under 745,000 pure-electric vehicles globally in 2024, a decrease of 3.4%. EV sales were up 8% in China but down 5% in Europe and down 30% in the U.S.
BIG TRUCK MAKERS DOWN IN 2024
And it’s not just passenger vehicle makers that are struggling in Europe, so are the big truck companies. Daimler Truck reported a 12% decline in annual sales last year and Traton, which is part of the VW Group, saw a 1% drop in sales. Last year, Daimler cut its annual outlook and reduced hours for some workers in Germany due to weak demand in Europe and Asia.
HYUNDAI EVs MORE EXPENSIVE IN EUROPE
As we reported last week, Hyundai is bringing its Inster small electric SUV to Japan, which will have a starting price of $18,000. It’s already on sale in South Korea with a $19,000 price tag. So, it’s interesting to see that the model is much more expensive in Europe, where it starts around $27,000. And the automaker just announced it’s launching a more outdoorsy version called the Inster Cross in the UK, which will start at $35,000. The model features 17” alloy wheels, new front and rear bumpers, exclusive side skirts and black cladding, a roof rail and more. It features a 49-kWh battery and has 223 miles based on the WLTP cycle. Deliveries are expected to start in May.
But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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Isn’t part, or most of difference in price of the Inster small electric SUV in Europe vs other markets due to the VAT?
1 VW sales in North America topped 1 million units, a 6% gain. Since that is surprising to me: do we know which products VW owes this success to?
2 @Autoline TV Team: ” The Hyundai Inster is already on sale in South Korea with a $19,000 price tag. So, it’s interesting to see that the model is much more expensive in Europe, where it starts around $27,000. Exporting the vehicles from South Korea to Europe requires transport, shipping, insurance, financing, import tariffs, the high Western European value-added taxes (around 20%) as well as the charges by the wholesale importing company add a lot of cost, so not surprising to me. Please note that as far as I know the vehicle prices are including the around 20% VAT. One of the people posting here lives in Switzerland (I apologize for not being able to come up with your name) and probably knows better.
VW’s success in the US and Canada would be mostly Tiguan, Taos and Atlas SUVs. Atlas was “designed for America,” I don’t know much about Taos, except that it is a small crossover. VW dropped most of their cars in the US. The only Golfs sold in the US are GTI and Golf R. Jetta is the only other car they sell in the US.
I found that they sell Polo in Mexico, but not regular Golf.
I think the AV development ‘race’ you refer to lies mostly WITHIN the power blocs of the EU, US and China, not between them. No matter whose tech turns out to be better, none of those players is going to allow the others’ tech in their country, for entirely political reasons. The rest of the world will have to decide who of those three they trust the most when they decide which AV tech to allow in their country. Poorer countries will likely pick whichever is cheapest. Countries dependent on the US will be forced to use a US system or face sanctions. Companies with sales in each power bloc, like Tesla, will be forced to setup their vehicles hardware so it can use the AV software of the country the vehicle is sold in.
Are you in love with China
Forget them as all your news is China and if it keeps up I will cancel AUTOLINE