AD #4044 – Trump to Ease Auto Tariffs, Sorta; GM Reports Weak Q1; iCAR’s $15K Chinese Off-Roader

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

TRUMP TO EASE AUTO TARIFFS, SORTA
Last week, in an unprecedented move, 6 different auto industry trade groups including automakers, suppliers and dealers, banded together to warn the Trump Administration that its tariffs would cause car sales to drop and lead to layoffs. And it looks like President Trump got the message. The Wall Street Journal reports that the Administration will lift the tariffs on steel and aluminum for vehicles made in the U.S. Automakers importing parts into the U.S. can also apply for reimbursement up to 3.75% of the value of a U.S.-made car. But they’ll still have to pay the 25% tariff on the non-U.S. content of those parts. And the 3.75% reimbursement only lasts for a year. It drops to 2.5% in the second year, and then it gets phased out entirely. The President will attend a rally in Michigan today where he’s expected to officially lay out the new policy.

GM REPORTS WEAK Q1
And because of that visit, GM’s CEO Mary Barra is rescheduling her conference call with auto analysts. She was going to do it today because GM released its Q1 earnings this morning. But Barra clearly wants to wait until she knows exactly what Trump is going to say before she talks to the analyst community on Thursday. GM already pulled its guidance for the rest of the year due to tariff uncertainty, and so it comes as no surprise that GM had a weak quarter. Sales were up less than 2%. Revenue was up 2.3%. But total expenses were up 3.5%, which translated into a 10% drop in operating profit, and a 6.5% drop in net profit.

PORSCHE PROFITS PLUMMET 44%
And at Porsche the news was even worse. It saw car sales fall nearly 8% in the first quarter. Revenue fell 1.7%, which shows some pricing strength considering the drop off in sales. But Porsche’s operating profit plummeted more than 40% and its net profit fell 44%. And it’s likely to get worse. Porsche has stopped shipping cars to its U.S. dealers over the tariff uncertainty, and we estimate that the U.S. accounts for nearly 30% of Porsche’s profits.

FERRARI KEEPS KEY COMPONENTS IN-HOUSE
Ferrari says it will build what it considers strategic components for EVs in-house and not buy them from a partner. Ferrari will introduce its first fully-electric vehicle in October and the company’s CEO Benedetto Vigna says it will always make EV parts like electric motors and axles, but not the battery packs. Last week, there was speculation Ferrari could develop an EV based on Leapmotor’s EV architecture, after Leapmotor’s CEO said the two companies were in talks. But Leapmotor later clarified that the discussions were not ongoing and Vigna says Ferrari won’t buy a platform from a partner.

CHERY COULD GET VW GERMANY PLANT
It looks like Volkswagen has found a solution for some of its excess production capacity in Europe. Automotive News reports that the VW Group is closing in on a deal with Chinese automaker Chery to build vehicles at a plant in Germany. The site would produce vehicles for Chery’s Lepas brand that launches in Europe next year. But Chery says a few issues including cost, supply chains, labor unions and regulatory requirements, still need to be worked out.

NISSAN TO CLOSE WUHAN PLANT
And in other production news, Nissan wants to end production at its Wuhan plant in China by March of next year. The plant, which has the capacity to build 300,000 cars a year, has only reached 10,000 units a year since it started operations in 2022.

 

iCAR’S $15,000 OFF-ROADER IN CHINA
Have you ever heard of a car company called iCAR? Neither had we until we ran across this little gem at the Shanghai auto show last week. It’s called the iCAR 23, a 2-door, 4-seat battery electric, A-segment off-roader with a base price of $15,000. The company really expects to make its money by selling all kinds of accessories, including an electric mountain bike for $1,000. The interior is simple, but with a good sized screen. And the front seats can even be laid down flat to make a bed. By the way, we’re going to make all the specs available on this vehicle for our members, as well as a photo montage of what we saw at the Shanghai show. So if you haven’t signed up yet for a Patreon or YouTube membership to support Autoline, here’s another good reason to do so. And for all of you who have already become members, well, all we can say is thank you very much.

RENAULT TO LAUNCH 3 EV CV’S
We’re getting more details on the three new electric commercial vans that Renault will launch next year. The Trafic, Goelette and Estafette were developed by FLEXIS, a commercial vehicle joint venture between Renault and Volvo, and they ride on a new Software Defined Vehicle architecture that was made by Renault’s EV and software division, called Ampere. The Trafic is available in two wheelbases and only has a traditional van-like cargo area. The Goelette is built on the same platform and features the same cab as the Trafic, but the back half is available as a chassis cab, cargo box or even a deep cab version with seating for up to 6 people. The Estafette is built on the same platform and features the same interior dash as the Trafic and Goelette, but it’s a high-roof version that has enough space for someone to stand up in. All three vans will have two battery options; one is a higher energy density NMC battery that provides up to around 450 kilometers or about 280 miles of range in the Trafic van, while the other is a lower cost LFP battery that provides nearly 350 kilometers or roughly 215 miles of range. Power comes from a rear mounted electric motor that makes 150 kW or 200 horsepower and thanks to an 800-volt charging system, the vans can charge from 15-80% in under 20 minutes. Other highlights include bidirectional charging capability, over the air updates and lots of unique features and services for fleet operators. The Trafic, Goelette and Estafette will all be built at the same Renault plant in France alongside the ICE version of the Trafic, which will still be sold in the market. That same plant will also make custom bodies for the vans that are then sent off to a nearby conversion center.

RENAULT BOREAL SUV FOR GLOBAL MARKETS
Speaking of Renault, it teased a new C-segment SUV, called the Boreal, that it designed specifically for markets outside of Europe, like Latin America. The model will officially be revealed in the coming months and will eventually be offered in 70 markets around the world.

JLR REUSING OLD TOOLING TO CUT COST
Here’s something that we wonder why more companies don’t do. Instead of buying new equipment for its EV transition, JLR is reusing old tools and machines. It’s taking 100 million pounds worth of equipment from closed down plants and unused production lines, fixing it up and putting it back into its plants in the UK and Slovakia. One other thing we find interesting about this, is that JLR says some of the equipment came from Graz, Austria. That’s the same place where Magna contract manufactured the I-PACE and E-PACE for Jaguar, both of which are no longer being built. Although, we don’t know if JLR bought the equipment from Magna or if it already owned it.

FOXCONN COULD BUILD EV IN U.S. PLANT
And speaking of contract manufacturing, Foxconn claims that it has a U.S. client that will rebadge and sell its Model C all-electric crossover under a new name. And that the model will go on sale before the end of the year. The company declined to say who that will be, but it plans to start shipping models from its factory in Taiwan. However, if tariffs from the Trump Administration would interfere with long-term imports, then Foxconn says it could shift production to its plant in the U.S. in Lordstown, Ohio as early as next year.

DAIMLER TRUCK WANTS RECORD FOR DRIVING IN REVERSE
Mercedes-Benz Trucks says it’s aiming to set a new GUINNESS WORLD RECORD, but it’s probably not the title you would think it’s aiming for. It’s going to try to set the record for the longest distance traveled in reverse with a trailer on the back of a semi truck. The current record stands at 55 miles or 89 kilometers and was set in 2020 by a diesel truck in the U.S. But Mercedes hopes to go 100 kilometers or about 62 miles with its new long-haul electric truck at a closed track in Germany. So, it will have to go around some twists and turns, which adds another little level of difficulty.

But that’s a wrap for today’s show. Thanks for tuning in.