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Runtime: 9:37
0:00 EPA Wants to Roll Back Emission Standards
1:03 Relaxed Emissions Would Hurt Tesla Earnings
1:28 Baidu Helps Tesla with FSD in China
2:25 Chinese Model Y Orders Overstated
3:06 U.S. Tariffs Worry GM Union in South Korea
3:49 BMW Will Eat Some Tariff Costs
4:30 Restructuring Costs Hit VW’s Bottom Line
5:21 Battery Maker Northvolt Files for Bankruptcy
6:01 Toyota Launches New Station Wagon
6:55 Mercedes Picks Risky Lidar Provider
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
EPA WANTS TO ROLL BACK EMISSION STANDARDS
The Trump Administration continues its efforts to roll back regulations put in place by previous presidents. There’s been attempts to rescind fuel economy standards, EV tax credits, the waiver that allows California to set its own emission rules and it did stop funding for new EV chargers. Now the EPA says it’s started efforts to roll back nation-wide emission standards, which progressed up to a 50% cut of fleetwide passenger vehicle emissions by 2032. That would have required automakers to build and sell a growing number of electric vehicles in order to meet those targets. The EPA is also reconsidering regulations that would have cut heavy-duty truck emissions by 80% over time. While these standards were putting pressure on automakers and suppliers to meet them, they were put in place to reduce sickness and death as well as help lower costs over time.
RELAXED EMISSIONS WOULD HURT TESLA EARNINGS
And they also netted automakers like Tesla billions in ZEV credits. With the standards ramping up, it forced automakers who weren’t compliant to buy credits from those that were. So, if emissions are relaxed, the credits start to go away. And that could have a big impact on automakers like Tesla, which has made $2 billion selling ZEV credits over the years.
BAIDU HELPS TESLA WITH FSD IN CHINA
And in other Tesla news, the automaker is trying to improve the performance of its hands-free driving system in China. While it recently launched an FSD update in the country, the system is still not as capable as the version it offers in the U.S. because the company doesn’t have permission to fully train FSD in China yet. Elon Musk previously said it used publicly available video of traffic environments to help launch the update that it just did, but that didn’t work well enough with reports of users getting tickets because the car made an illegal maneuver on the road. So, now comes word that Tesla is also working with Baidu to integrate Baidu’s mapping information into FSD, so it has more accurate road information. However, it remains to be seen if this will expand FSD’s availability in China, which is currently limited to newer models that only started getting built last year.
NEW MODEL Y REGISTRATIONS OVERSTATED IN CHINA
And a bigger base of FSD users would be good for Tesla because pre-orders for the new Model Y in China might not be as high as some thought. Reports came out that there could be more than 200,000 people waiting to get their hands on the EV, but an analyst believes some were getting confused about how Tesla assigns reservation numbers to vehicles. They believe the real number is closer to 89,000 units and also includes Model 3 registrations. That number would represent just under 2 months of deliveries for Tesla in China, which is the current delivery time for both models right now.
U.S. TARIFFS WORRY GM UNION IN SOUTH KOREA
General Motors union workers in South Korea are worried about losing their jobs because of U.S. tariffs. The union is concerned GM will reduce or even move production to the U.S. if the tariffs go into effect. Bloomberg reports that union leaders are travelling to Detroit this weekend to meet with GM executives to get more clarity about plans for importing vehicles made outside of the U.S. The union leaders also plan to meet with UAW President Shawn Fain, who is in favor of the tariffs. GM Korea employs nearly 10,000 people and last year it exported nearly 500,000 vehicles and almost 80% of them went to the U.S.
BMW GOING TO EAT SOME U.S. TARIFFS
Speaking of those tariffs, BMW says it’s just going to eat them, at least for now. The automaker told its U.S. dealers it would price protect certain models that are made in Mexico and subject to the tariffs. Those models include the 3 Series sedan and 2 Series coupe, but BMW says it will only eat those until May 1st.
RESTRUCTURING COSTS HIT VW’S BOTTOM LINE
Volkswagen spent more restructuring the company last year than it made selling cars. It did increase sales by nearly 3% to just under 5 million units, which brought in 140 billion euros of revenue, up 1.6%. But it says restructuring costs and high purchasing incentives at the beginning of the year led to increased spending. That dropped its earnings before interest and taxes down to just under 7 billion euros, which was 4.3% lower. And VW’s net cash flow came in at roughly 4.7 billion euros, a drop of nearly 17%. The company says this year it will continue to try and make its plants more efficient, reduce the number of groups it has for technical development and gear up for launching a new, more affordable family of EVs.
NORTHVOLT FILES FOR BANKRUPTCY
Last November, European EV battery maker Northvolt filed for Chapter 11 bankruptcy in the U.S. in an effort to raise new financing because it was nearly $6 billion in debt. But Northvolt was unable to secure a deal, so it just filed for bankruptcy in Sweden. Its business and assets will be sold by a court-appointed trustee. However, Northvolt Germany and Northvolt North America are not filing for bankruptcy in their jurisdictions. Northvolt struggled to ramp up mass production of batteries which led to several automakers cancelling contracts which contributed to its money woes.
TOYOTA LAUNCHES NEW STATION WAGON
Toyota launched the fourth model in its Crown lineup, the Estate, in Japan. The automaker describes it as a combination of an SUV and station wagon and says it’s aimed at buyers with an active lifestyle. To make camping and being outdoors more comfortable, the model features a pull-out chair and table in the luggage area. The Crown Estate is available with a hybrid and a plug-in hybrid powertrain and they both average about 47 MPG or 20 km/liter based on the WLTP cycle. But even though they achieve similar fuel economy the PHEV is much more expensive. The hybrid starts at $42,800 while the PHEV costs $54,600. Toyota says it expects to sell around 1,500 Crown Estates per month in Japan.
MERCEDES PICKS RISKY LIDAR PROVIDER
At the beginning of the year, the outgoing Biden Administration finalized rules that effectively bans Chinese software and hardware in connected cars. That’s why we’re intrigued to see that Mercedes is partnering with Chinese lidar maker Hesai to develop smart cars for global markers using Hesai’s sensors. Reuters reports it wasn’t an easy decision for Mercedes and that it took months to deliberate because of the legal and geopolitical risks. But the automaker ultimately chose Hesai because of its low cost and ability to produce lidars at scale. Some European automakers already use Hesai’s lidars for vehicles they sell in China but Mercedes could be the first company to use them for models sold outside of China.
Don’t forget that Autoline After Hours goes live at 3PM EST this afternoon. John says he wants to talk about the most reliable cars you can buy because we have Jason Norton from JD Power coming on the show. As you may remember JD Power recently released its annual dependability study and we thought GM did surprisingly well, so no doubt that will be a topic.
But that’s a wrap for this show. Thanks for making Autoline a part of your day.
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A real shame wagons don’t sell well in the USA as I doubt Toyota will be sending it over. I liked the Buick Regal Wagon(Opel Insignia wagon) but it was short lived due to poor sales. In the used market they are holding value compared to SUVs that would have been in that size segment. Tells me there is a loyal wagon following willing to spend money to have a modern wagon, but they are just not a big enough group apparently.
The Crown Estate seems to be about the same thing as the Crown Signia, too tall to be a station wagon, and too low to be an SUV. I always liked station wagons, when you could buy them in the US. I’d like something similar to the Buick TourX, but with a Toyota hybrid powertrain, and no AWD.
sickness and death? lol…what? the entire notion of “green” is SO skewed in the media. Feds go after what/who they think they can control.
they do nothing about ships and factories around the world, or the land destruction for mining!
the mandates were forcing the automakers to make EV’s in order to meet them. The market and taste for EV’s isnt NEARLY what they wanted. The widespread infrastructure is still many many years away.
the targets were way too aggressive.
There is an irritating issue concerning the relative lack of well priced station wagons in North America. Current SUVs preclude the practical use of roof ski boxes. The combined height means one can’t use most underground car parks. Most station wagons plus ski boxes are car park compatible but are too e pensive for the average buyer.
Emission requirements need to be made with some common sense and not just a dart thrown at a board to just raise the bar. We reduced emissions by 90% from 1998 and 2014. At some point we will reach a peak of capability. Depending on what article you cite, deaths attributed to emissions range from 30k to 90k a year. Yet those deaths are very subjective, as they are from conditions that might have resulted in death without being subjected to dirty air. Conditions like asthma and lung cancer. It’s complications that muddy the water as no one just drops dead from emissions except even when locked in a garage with a running car.
However, if you look up the top 10 causes of death emissions, lung cancer or asthma isn’t even listed even tho number 10 is kidney disease at 54k deaths a year. No doubt some of these regulations were put in place with such a high standard just for the sake of forcing EV adoption. The regulations need to be achievable without artificially subsidizing a different technology. Glad to see common sense coming back.
Emissions cause more harm than just premature deaths. With what is going on, there will be even more huge trucks that few people need, spewing lots of CO2, the major global greenhouse gas source.
Well, probably sales of everything will decrease, including vehicles, as a result of the likely recession brought on by the tariffs/trade war created by our fool-in-chief. Maybe Scotch will be exempt from the new 200% tariff on alcoholic beverages from Europe, since the UK is no longer part of the EU.
Kit the cool thing about living in America is people like you can’t dictate what I want or need to drive. Claiming people buy stuff they don’t need coming from a guy that has more vehicles than drivers and has a Corvette at one time. Certainly not needed but because you wanted it. It’s fine.
You make a wild claim that emissions cause more problems than death but never were specific so just a comment to express an agenda without and actual facts. As for this so called recession you’re predicting. Time will tell if your fortune telling is any good. I doubt it.
I am really sick and tired of seeing comments in all kinds of forums, and especially articles written by all kinds of auto writers, where they lament and deplore the demise of the wagon.
The wagons became extinct because the almighty consumer (who is always right) did not buy them. This includes ALL of those who wail about their demise. They also do not buy wagons, while they complain about their demise.
Another way to see this is that wagons actually never became extinct, they were transformed, again because this is what the almighty consumers wanted, into compact and midsize crossovers, which weigh a bit more, have a little less mpg, and have a bit more capability on rough roads, and are a smarter design (Height is the cheapest dimension to increase to maximize volume). The station wagons of the 70s were too damned wide and too damned short in height to be as ‘utile’ as today’s utility vehicles and especially Minivans.
If the consumers want 1,000,000 F 150s they never need, who are we to object? Fortunately recently they wised up and bought 500,000 RaV4s as the best selling vehicle, outselling the F150. And for most of these buyers, the small WAGON Rav4 is a far better and wiser purchase than the F150 they never needed.
So I am pleased. I would prefer that Toyota and Honda offered Camry and Accord Wagons, but apparently they make more $ selling them as CRVs and RAV4s, and the consumers do not protest. So who are we to object?
If you want to support wagons and not just pay lip service to them, vote with your wallet, and buy a Subaru, Volvo or VW wagon (they still sell them) next time. I will not.
BTW, the same usual suspects who wail the demise of the wagons, also wail about the predominance of auto transmissions, and again, none of them buys a 6 speed manual.
There are no real wagons in the US market. Subaru’s closest is the Outback, bastardized with the lift kit, body, cladding, bloated roof rails and mandatory AWD. The VW Jetta wagon is long gone. You can’t even see a Volvo V90 without pre-buying it.
Hey Kit
How about the emissions from your chimneys and your lawnmowers? Why exclude these? They are far worse offenders than cars.
And far, far, far worse than cargo ships, who carry most of the international trade cargo (the bigger they are, the lower the numbers) using unbelievably little fuel and emissions. (as little as 23,000 ton-miles per gallon!!!!)
that’s just your opinion, Kit. I could care less about purists who wail becuse there are no “real” (define the term!) wagons.
In my book, EVERYBODY and his mother-in-law drive wagons today, they are the Rav4s and the Highlanders and the Pilots and the CRVs. Why aren;t they wagons? THeir makers just call them crossovers so consumers are not turned off by their names.
Didn’t you also have a Highlander once? BTW I never owned any crossover or SUV. And I did own, when I was a student, a total piece of crap Passat Wagon.
Lambo, I didn’t claim that emissions cause more problems than premature deaths, just that they cause problems in addition to premature deaths.
Regulus, Highlanders, Pilots, RAV4s etc. are not wagons, because they are about 10-14 inches taller than a car, the result being worse mpg and handling. Yes, they are better for carrying big, tall boxes, for the handful of people who do that. An actual station wagon is about 57-58 inches tall, like a Camry or Accord. I still own a Highlander hybrid, because Camry and Accord wagons don’t exist. Part of why CUVs have become so popular is that the government calls them trucks, so they can skate on efficiency, some safety regs, and because they can have factory dark tinted rear passenger side windows, which cars can’t have.
Lambo, the stock market doesn’t a recession make, but my investment account with a lot of mutual funds has crashed more than 10% since Trump/Musk took power. Knowing I have less in assets, I’m likely to spend less on things I don’t need, which contributes to a recession. Yes, we shall see what happens.
Regulus, yes, lawn mowers are bad regarding HC and probably CO emissions, but in the scheme of things, trivial as far as CO2 emissions. The HC and CO don’t matter in sparsely populated areas where I use a lawn mower.
You must have missed it, but I have pointed out how efficient cargo ships are, making fuel use a poor argument against shipping cars and other products long distances by ship.