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Runtime: 11:38
0:00 GM to Revamp Its Big SUVs in 2029
1:15 China Adds 10% Tariff to U.S. SUVs
1:56 Car Sales Drop, Has China Hit Peak Auto?
2:50 GM Bails Out Small Supplier
4:14 BYD Adds Self-Driving for Free
5:16 Big Discounts on 2025 Nissan LEAF
6:06 Trade In Your ICE, Get a Rivian Discount
6:33 Electric Blazer to Pace Daytona 500
7:22 Chevy, Polestar Best in Canada EV Cold Weather Test
8:18 VW Adds New IC Engines
9:02 Renault Offers Spare Parts for Classic Cars
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GM TO REVAMP THE CROWN JEWELS IN 2029
The Cadillac Escalade, GMC Yukon and Chevrolet Suburban and Tahoe are the crown jewels of General Motors. They’re all made at GM’s assembly plant in Arlington, Texas, which cranks out over 400,000 of them a year. Though most are sold in the U.S. market, they’re shipped all over the world. We estimate they generate more than $25 billion a year in revenue, meaning that plant probably generates more revenue than McDonald’s or MasterCard. And we’ve got some intel on GM’s future plans for these big SUVs. According to AutoForecast Solutions, the current platform will stay in production until 2029, when the plant will go through a massive changeover to start making the next generation versions. They’ll go onto a new platform called T1-xx2. And it looks like these will be ICE powered SUVs, not battery electric. GM dominates the full size SUV segment and this investment in a new platform could likely keep it that way.
CHINA ADDS 10% TARIFF TO U.S. SUVS
But GM could have a harder time selling the Tahoe and Yukon Denali through its Durant Guild in China. As part of its retaliation against President Trump’s additional 10% tariff on all imported Chinese goods, China is slapping an additional 10% tariff on imported SUVs made in the U.S. with engines larger than 2.5 liters. That tariff is also going to snag BMW and Mercedes, which make SUVs in South Carolina and Alabama that are exported to China. Hopefully, the tariffs will get negotiated away and we should know which way the trade winds are blowing before the month is over.
CAR SALES DROP, HAS CHINA HIT PEAK AUTO?
Meanwhile, Chinese authorities may be starting to wonder about the future of their home market. Sales of new cars fell 12% last month to just under 1.8 million units. That was kind of expected as customers rushed to buy cars in December before certain subsidies were phased out and the Chinese New Year kicked off at the end of January. The one bright spot, of course, was with New Energy Vehicles, which includes BEVs, PHEVs and EREVs. They were up more than 10%. Exports were also up 3% compared to a year ago. But all the good news on NEVs and exports is hiding an unpleasant truth. Sales of passenger vehicles in China really haven’t grown that much over the last decade, suggesting that China, like most of the rest of the world, has hit Peak Auto.
GM BAILS OUT SMALL SUPPLIER
Now, back to General Motors for a moment. In a sign of the underlying weakness in the supplier community, GM has to bail out a small supplier called Michigan Spring and Stamping, that’s teetering on the edge of bankruptcy. GM is going to provide the financing to keep the company alive until at least June, while it presumably looks for an alternate source of income. The little company makes springs and torsion bars, amongst other products, and has been supplying the auto industry since 1946. And it’s not the only supplier facing financial problems. Here’s our Autoline Insight. Sales of new cars in the U.S. market are still a million units lower than they were before Covid. And the cost of materials and labor continues to go up. Trump’s 25% tariffs on steel and aluminum will only drive them higher. And so it’s the smallest suppliers, like Michigan Spring and Stamping, that are the first ones to collapse under all the pressure. But make no mistake, the entire supplier community is feeling the pressure.
BYD ADDS SELF-DRIVING, FOR FREE
BYD made a huge announcement yesterday that likely has most automakers on edge. The company revealed that it will equip all of its models with its new advanced driver assistance system called God’s Eye for no extra cost. Three versions will be available. God’s Eye C is the entry-level system, which features a three-camera cluster behind the windshield, and will be equipped in BYD branded models. The next step up is God’s Eye B, which adds Lidar, and will be available for the Denza brand and select BYD models. And the top-of-the line God’s Eye A system features 3-Lidars and it will be equipped in Yangwang vehicles, BYD’s luxury brand. Automaker’s have been offering technology like this as a subscription service to customers and expected to generate big bucks, but with BYD offering it for free, it will make it harder for the competition to keep charging for it.
GET A NISSAN LEAF FOR ONLY $9,000
Nissan is reportedly getting ready to reveal the next-generation LEAF, so to help clear out inventory of the current version it’s offering a big discount in the U.S. Customers can get $7,500 cash back, which makes the LEAF even more affordable. Starting price for the 2025 model year was already just over $28,000, so that discount brings it to nearly $20-grand, which is about $30,000 less than what the average EV sells for in the U.S. And that’s before any federal or state EV incentives. If you happen to live in Illinois, drive over half your time in low-income areas and are a ComEd commercial customer, you can get a brand-new 2025 LEAF for just over $9,000.
TRADE IN YOUR ICE, GET A RIVIAN DISCOUNT
Speaking of making EVs more affordable, Rivian is offering discounts if you consider trading in your ICE-powered vehicle. Anyone who gets a trade-in estimate on their hybrid or gas-powered vehicle receives anywhere from $3,000 – $6,000 off certain models in inventory. The promotion is being offered until the end of March and even if you don’t trade in your vehicle, you can still get the discount.
ELECTRIC BLAZER TO PACE DAYTONA 500
Chevrolet announced that the upcoming SS version of Blazer EV will be the pace car for this weekend’s Daytona 500. And it’s the first time either an EV or the Blazer has paced the race. The model produces 615 horsepower, 650 lb-ft of torque and can move from 0-60 MPH in 3.4 seconds. It has an EPA estimated range of 303 miles and goes on sale later this quarter. Chevy will also debut its Blazer EV.R NASCAR prototype ahead of the race, which looks like Chevy’s version of the electric NASCAR prototype that debuted last year and like the Mustang Mach-E NASCAR prototype that was also seen doing burnouts recently.
CHEVY, POLESTAR BEST IN CANADA COLD WEATHER EV TEST
Cold weather impacts any vehicle’s range but it can really drag an EV’s down. So the Canadian Automobile Association released a study that shows which models fare the best in winter. It drove 13 EVs on a route in temperatures that ranged from -15 to -7 C or 5 to 19 F until the batteries were completely dead. The best performers were the Chevy Silverado EV and the Polestar 2 which lost 14% of their federally estimated range. While the worst performer was the Volvo XC40 Recharge, which fell short of its range by 39%. Two-thirds of EV owners in Canada say that lower range in winter weather has been a problem for them but despite that, 87% of the same owners plan on buying an EV for their next vehicle.
VW ADDS NEW IC ENGINES
Volkswagen is adding a new gas engine to the Passat, Tiguan and Tayron. It’s a 2.0L turbocharged 4-cylinder that’s offered in two outputs, one is about 200 horsepower and the other is roughly 260 horsepower. The Tiguan and Tayron can be ordered with both versions, while Passat is only available with the more powerful output. And all are paired with all-wheel drive. VW says that gives the Passat and Tiguan a towing capacity of 2,200 kilograms or 4,850 pounds and the Tayron a capacity of 2,500 kilograms or about 5,500 pounds. Pricing starts at around 48,000 euros.
RENAULT OFFERS SPARE PARTS FOR CLASSIC CARS
Almost anyone I’ve known that’s owned a classic car has talked about the difficulty of finding replacement or spare parts. So, Renault is trying to help. It’s expanding a service it launched about three years ago, called The Originals Renault Services. Since then owners of classic Renaults have been able to get paperwork with information about the original build of their car, including color, date it left the factory and chassis, engine and gearbox numbers. As well as getting help to register their vehicle as a classic. But now they can also get help finding a repair shop that’s qualified in fixing classic Renaults, although mostly in France, as well as help finding spare parts through a network of after-sales sites and free access to repair manuals.
But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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The Volvo C40/XC40 with Ultimate trim has standard heat pump while lower models do not or have it as an an option.
Never heard of the VW Tayron. Do they sell it in Iran? (just couldn’t resist)
I have long thought that adapting the Volt powertrain for use in their large SUVs would be a great move for GM. At least making it available as an option in the next generation vehicles seems like a good hedge position. If gas prices spike, consumers that need this type of vehicle would happily pay a few thousand more to own a Suburban that gets 30 mpg. Honestly, I think it was a huge critical error not to keep developing the Voltec powertrain system and adapting it to medium and larger vehicles. It would give GM a competitive advantage and help to protect the market share of their “crown jewels”.
By the way, their market dominance with these vehicles has been slipping over the last five years. Some of the import brands, as well as much-improved competitive models from Ford, have been chipping away at GM’s market share in this segment.
GM probably hasn’t “deserved” to dominate the monster SUV market for a long time, as Tacoma probably doesn’t deserve to dominate the mid-size pickup market as it does. Both have a lot of inertia from years past, and the products are certainly competitive, if not necessarily best-in-class in some ways. With the SUVs, while not selling great, Wagoneer is taking some sales from GM.
Has GM dropped the diesel in Tahoe et. al.? It is not listed on fueleconomy.gov for 2025.
Just yesterday I commented that “Autonomy will become as cheap as mobile connectivity”.
I’d be very interested in an AAH with an expert on Chinese vehicles, who also knows his or her way around software and autonomous driving. And could explain the three tiers of BYD’s system, as well as provide an insight into their (hardware) cost. Which can’t be all that high, I know that Tesla includes the relevant hardware for a couple of hundred USD, which is astonishing given the computers’ power.
Isn’t the BMW factory in South Carolina the top exporter of US-built cars?
And who pays Trumpiffs? You pay Trumpiffs.
From a Feb. 2023 post by BMW:
“For the ninth consecutive year, BMW Manufacturing (in SC) led the nation in automotive exports by value, according to data released by the U.S. Department of Commerce.”
The Jeep wagoneer/grand wagoneer is a nice vehicle from a design perspective, but it is plagued by reliability problems and kind of pricey when you get beyond base trims. Thus why it is not selling very well. The Expedition is a nice vehicle, but a bit too utilitarian as compared to the tahoe/suburban in a market segment that wants more of a car like feel than a truck like feel. It is also oddly smaller than the Tahoe/suburban inside and makes it more challenging for a family to haul all the things that is usually stuffed into these things. If ford makes the expedition less utilitarian and Jeep fixes their reliability issues, they will be exceptional competitors.
One thing that the suburban/tahoe could really use to take them over the top is towing capacity. Ford outshines GM, and jeep, on towing capacity with GM being dead last. When I see a large SUV towing a large trailer, it is usually a Ford. Hopefully GM is looking to increase towing capacity with their redesign, otherwise a large segment of people will simply keep buying Ford expeditions. Hopefully their next gen will fix this glaring issue of tow capacity as it is rather pathetic. At this point the Ford Ranger is almost going to surpass the Suburban in towing capacity if Ford keeps increasing the ranger tow capability.
GM Veteran —
I’m sure you’re aware that GM had a hybrid system for their full-size pickups and SUVs back in the 2000’s. While it was not the same as the Volt’s tech, as you said, had they continued to develop it, they would have been in a better place, now that hybrids, PHEVs and EREVs are the “must have” tech of the moment! Yet, as in the case with the Volt, high cost and lack of buyer interest closed the coffin on that application. What is funny/interesting, remember the Cadillac ELR, the coupe that Cadillac/GM did, using the Volts hardware? Spending $70K on a two door Cadillac, that had the Chevy bones, was a mile two far. Yet, with the both of them being EREVs, I wonder if GM would have as hard a time selling them today, if the both were four doors?
I suspect Suburban/Tahoe/Yukon have adequate towing capacity for 99.5% of buyers in that market. I’d think a 6.2 liter V8 would be bettet than Ford’s turbo V6es for towing, but maybe not.
The “classic” Renault I remember in the US was the Dauphine, sold as a VW Beetle competitor in the late ’50s and ’60s. They Americanized the pronunciation to “rennalt” for US TV ads. It was rear engine, but I don’t remember if air or liquid cooled.
Sean, can you provide the relevant production statistics for Car and light truck sales in Canada, plus Canada to US exports and US to Canada exports? When I looked on google, it suggested that the US sold many more cars in Canada than they received from Canada. As for ‘stealing the US’s car industry, as Trump said today, I think you will find that GM bought the largest Canadian firm, McLaughlin, to get into Canada. Not sure if Ford and Chrysler bought small Canadian companies to get into Canada, just that they forced all other Canada makers out of business. Fun fact: Studebaker survived several years longer in Canada than it did in the US, Honda and Toyota are the only large OEMs in Canada now. All the others have shrank as they opened plants in Mexico.
Chrysler Pacifica is built in Windsor, Ontario, and Chevy Silverados are built in Oshawa, Ontario. From what I find, those are the only products from “Detroit Three” companies still assembled in Canada. Ford plans to build super duty trucks, and Stellantis plans to build some kind of Jeeps in now-dormant plants in Canada. Honda and Toyota have a lot of operations in Canada, and a number of companies make parts for various car companies.
Being from Indiana, where Studebaker was located, I remember their Canadian operations outlasting South Bend by a couple years. The last two or three years of Studebaker cars had Chevy engines.
IMHO, the Blazer EV SS, is the best looking of that models line up, but the rest do not move the needle for me. I have to applaud Chevrolet/GM for not selling the highest trim level first with the Blazer EV and making potential buyers wait 6 months to a year, before the less expensive models go on sell! It seems to have made a difference, too, for I see a lot of them in the Southeast Michigan, Detroit suburb areas that I work and live in. Even better, the SS gets over 300 miles of range, besting its cross town rival, the Mach-E GT! It’s bigger, with the only draw back being it not offering phone mirroring AND the needing a subscription service for some of the infotainment. The fact that its platform mate, the Honda Prologue, allows you to go your own way and the Chevy doesn’t, is a bummer!
Kevin, the U.S. exports more to Canada than any other country, a remarkable fact considering Canada has a smaller population than California. According to the U.S. Department of Commerce in 2023 (the latest data available), the U.S. exported $57 billion worth of vehicles and parts to Canada, and imported $56.9 billion from Canada. In other words, a very balanced trade position. The U.S. does have an overall trade deficit with Canada, but that’s caused by all the oil and gas we import from our neighbors to the North.
John, interesting info. It looks like the US imports a lot of parts from Canada and exports cars.