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Runtime: 9:41
0:00 U.S. House Ready to Gut EV Incentives
1:16 Honda Forecasts 64% Profit Drop
1:57 Nissan Operating Profit Drops 88%
2:40 Mazda Teams Up with CATL For EVs
3:58 Xiaomi SU7 Gets Lowest Quality Rating
5:14 Nio 1st In EU with Steer-By-Wire
6:04 GM Hires Sterling Anderson As Product Czar
6:59 Mercedes Moving GLC Production to U.S.
7:39 Next-Gen Colorado, Canyon Not Until 2032
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
U.S. HOUSE READY TO GUT EV INCENTIVES
Over the last decade or so, the auto industry was in a mad rush to invest in electric cars. But that may be about to come to a screeching halt. Or, at least in the United States it could. Republicans in the House of Representatives are introducing legislation that will effectively gut the incentives to sell EVs. The House Ways and Means Committee introduced a bill yesterday that would get rid of the $7,500 credit for buying a new EV at the end of 2026. And starting in January, only companies that have sold fewer than 200,000 EVs will qualify for the credit until it’s phased out next year. The bill will also eliminate the $4,000 credit for used EVs and the $7,500 commercial vehicle credit, which is given to consumers who lease an EV. If the credits are eliminated, EV sales are expected to decline since prices will go up. By the way, they’re also getting rid of any incentives for hydrogen vehicles.
HONDA FORECASTS 64% PROFIT DROP
Two of Japan’s largest automakers posted their latest financial earnings today and the numbers are miserable. Honda sold 3.7 million cars, trucks and vans last year, down 9.6% due to a drop off in Asia and Europe. It earned $146 billion in revenue, which was actually up 6.2%. But its operating profit fell 12% to $8 billion and its net profit dropped 23% to $7.9 billion. And Honda expects its profits to drop 64% this year because of President Trump’s tariffs.
NISSAN OPERATING PROFIT DROPS 88%
At Nissan the situation is far worse. It sold 3.1 million vehicles last year, down about 2%. It brought in only $85 billion in revenue, down just a fraction from last year. But its operating profit plummeted 88% to only $471 million and it lost $4.5 billion. As we’ve already reported, Nissan has a new CEO is going to restructure, and as a result of that, Renault, which owns 37.5% of Nissan, says it’s going to take a $2.4 billion hit to its first quarter earnings.
MAZDA TEAMS UP WITH CATL FOR EVs
Speaking of Japanese car companies needing to cut costs to be competitive, word out of China this morning is that Mazda is teaming up with CATL to use its skateboard for future EV models. Those models will be built at Changan Motors, which is Mazda’s Chinese manufacturing partner. Mazda is investing $1.3 billion in China to double production with a goal of hitting 300,000 sales by 2027. Its partnership with CATL will give it a lower cost base and will get it to market sooner. What’s intriguing to us is how Mazda is not relying on Toyota to get this done, since Toyota is a 5% equity owner in Mazda. It just shows the strong independent streak that exists at Mazda.
XIAOMI SU7 GETS LOWEST QUALITY RATING
The Xiaomi SU7 got all kinds of accolades when it debuted thanks to its Porsche-esque styling and blistering performance, like setting the lap record at the Nurburgring for a 4-door sedan. But recently the car has come under a storm of criticism. First, it was involved in a horrific accident while in semi-autonomous mode, killing three passengers. That accident made headlines all across China and triggered a government crackdown on aggressive marketing of hands-free driving. Then, last week, the SU7 came under all kinds of criticism for an optional hood it offered for the car for $5,800 that looked exactly like the hood on the Nurburgring car. But it turned out the hood was merely cosmetic, with fake air outlets, and some customers are demanding a full refund. And now the China Automotive Quality Network reports that the SU7 has the absolute worst quality of the 29 new mid-size and larger BEVs that are on sale. So far, sales of the SU7 are still good, but we’re definitely going to have to keep an eye on this.
NIO 1ST IN EU WITH STEER-BY-WIRE
Nio is struggling financially, but the company continues to impress industry enthusiasts with its technology. It just became the first automaker to get certification for its steer-by-wire system in Europe. It already got certified in China. Lexus and Mercedes-Benz are expected to come out with steer-by-wire soon, so this is quite a coup for Nio to beat them to the market, even though the Tesla Cybertruck offers it. Automakers are quite interested in steer-by-wire since it eliminates the steering column, which can dramatically improve driver safety in front end collisions. It also makes it quite easy to adopt speed sensitive steering, which can eliminate hand over hand turns at lower speeds.
GM HIRES STERLING ANDERSON AS PRODUCT CZAR
General Motors just got a good get. It hired Sterling Anderson for a newly created position of executive VP of global product and chief product officer. Anderson co-founded autonomous trucking startup Aurora in 2017 and before that he worked at Tesla where he led the Model X program and development of its Autopilot system. At GM, Anderson will be responsible for the end-to-end product lifecycle for both gas and electric vehicles, including hardware, software, services and user experience. He’ll really be a product czar, reporting directly to GM President Mark Reuss and he’ll be based in GM’s Mountain View Tech Center in California, which makes us wonder if that’s going to become GM’s counterpoint to Ford’s skunkworks in Irvine, California.
MERCEDES MOVING GLC PRODUCTION TO U.S.
Mercedes confirmed it will build the GLC crossover at its plant in Alabama, and it’s all about President Trump’s tariffs. Mercedes wouldn’t say how much it will invest at the plant to make the model but did say it will be “significant.” Production is expected to start in late 2027 and AutoForecast Solutions says Mercedes could build 50,000 GLC’s in the first full year of production. Mercedes also declined to say if it will also build the planned electric version of the GLC in Alabama. The plant currently produces the GLE and GLS and their electric variants.
NEXT-GEN COLORADO, CANYON NOT UNTIL 2032
We’ve got some more good future product intel from Autoforecast Solutions. General Motors is going to stick with the current generation of Chevrolet Colorado and GMC Canyon until 2032. No doubt GM will have some refreshes between now and then. But the next-gen versions of those trucks will not be out for another 7 years. And that’s one way GM will boost their profitability. Autoforecast also says that Honda will start production of the Afeela EVs at its plant in East Liberty, Ohio in August, 2026. That’s part of Honda’s joint venture with Sony. But Honda’s dealers are undoubtedly going to pounce on that. Afeela wants to use a direct sales model, claiming it can avoid using franchised dealers since it’s a brand-new company. But with Afeelas getting built in a Honda plant that’s making the Honda CR-V, dealers are going to claim that Afeela is part of Honda and needs to sell its cars through them.
And that brings us to the end of today’s report. Thanks for watching Autoline Daily.
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I was never a fan of the EV incentives to begin with. There will never be a time when OEMs won’t cry about them going away. One just has to look to China where EV penetration is higher than the USA. The OEMs there cry the same sad song about effecting EV sales whenever China threatens to remove the incentives.
Since they will always cry about their elimination, might as well get the crying out of the way.
I skipped almost half the segments in today’s show. The Chinese companies may be important in Chinese Peoria, but not in the US. Yet I understand the show reports on the Global Auto Ind, but a little less emphasis on these guys, who still do not sell a single car in the US (nor do I see them any time soon) would make sense.
EV incentives used to be “rob the poor to pay the rich” at the beginning, as the median EV buyer had over $170k income, far greater than the Joe Sixpack taxpayer who subsidized them. Later COngress corrected this, but the result is that even if a vehicle DOES qualify, YOU almost sure do not. (Most professionals I know sure don’t). Maybe seniors with no 401k, living on SS, will be able to qualify. Doubt this is a good EV demo though.
Mazda and any other silly vehicles with tiny rear doors: NONE of them was a sales success, they will stop their production soon (IF they even begin it). Dumb and unattractive design. Rear doors are small to begin with in most cars, making them smaller is idiotic.
And before I end this, a quick look at the markets… instead of a huge profit taking (ie a drop) following yesterday’s EPIC rise of all indices, today the ones that count (SP500 and esp the tech heavy NASDAQ) are even further up, by almost 2%! Only the 30 stox of the Dow are down 0.4% as of this time.
After adding the US, Mercedes will be building CLC in 5 different locations, unless they close one of the current ones. They are currently building GLC in Germany, Finland, Thailand, and China. I couldn’t find global sales volume, but I’d be surprised if it is more than 200K.
Speaking of rear doors, easy rear access was one of the compromises in the new Prius in the name of styling. It doesn’t matter much to me, because the back seat is rarely used, but for those who use the back seat regularly, earlier Priuses were better. The new one drives much better, though.
I don’t think the Honda dealers are going to be successful. Honda is essentially a contract manufacturer for Sony. The dealer’s claim is very thin and I would not be surprised if their court action simply gets dismissed.
It’s a good thing that EV incentives will be going away. We need to save that money to pay for military/birthday parades and refitting a 747 we don’t need, which will cost billions according to aeronautical experts and would not be ready until 2028 if they started on it now. And that would be on top of the cost of the previously ordered 747 that is nearing completion. So, where are the savings in all of this? Has anyone consulted DOGE?
The EV incentive that would be most effective would be to somehow make charging available at apartment and condo complexes. It would need to be at utility rates, or little higher, not 50 cents per kWh like most public charging. There are no easy logistics, though, at least at my condo complex. About half of the units have garages, but the electric utility won’t install individual service, even if the customer would pay for it. The “row” garages have one 50 amp breaker for 12-15 garages, on “community” power for a door opener and lights, but little else. One or two cars could be charged L1 per row of garages and sub-metered to pay the condo association, but complete rewiring would be needed to support any L2 charging, and more than one or two cars charging L1 at the same time.
One thing that never changes with Government while teaching in your left pocket they distract you so you don’t notice they are also reaching into your right pocket at the same time.
And it’s the same with both political parties.
Want to cut government spending ? Cut lawmakers salaries, anyone who can go to work for the government for $200,000 a year and in 10 years be a multimillion can surely do it on $100,000 a year.
I’m actually surprised that the proposed bill waits until the end of 2026 to eliminate EV incentives. That still 19 months away. I fully expected Trump to cut that off right away. But I’m not fully convinced the incentives did anything but help automakers. They would inflate the price by $7500 knowing the customer would get that tax credit. So the consumer thinks they’re getting something for nothing and when the incentives go away and sales flop watch how they will drop 5-6 K off the sticker.
Danny T.: Do we really need 2 Senators from each tiny bitty state? And it is not just their $200k each, it’s all their staff and expense accounts and all that crap. They are obviously useless, and some of them corrupt even beyond the legally allowed corruption (becoming $1 mill a year lobbyists when they lose reelection or retire). I say CUT THEM TO 50, one per state. More than enough.
Lambo, I suspect Trump and Johnson want to keep the EV incentives until after the mid-term elections, because they might be popular with a few “swing” voters. Also, assuming the incentives work in selling more cars, ending them would hurt the economy, at least a little.
As far as the incentives, even though I’m a “lefty” and would probably have an EV if I had home charging, the incentive wouldn’t have much effect on my purchase decision. I’d say end them now and see if it makes any difference in EV sales. They could always be reinstated, and it a way that would help more people of moderate income.
@GM Veteran why the hate? I assume you were a union member during your time at GM? Trump has arguably done more to support the UAW members’ interests than any modern president. All those decades that UAW dues went to multimillion dollar contributions to democrat candidates all they got for it were declining membership, shuttered plants, and production moved wholesale to Mexico. Basically used as a piggy bank in election years.
Trump’s entire ethos is build it here and don’t fall for the green new deal scam. How have EVs worked out for the big threes’ bottom lines and how would that look moving forward regarding UAW production jobs when billions in losses continue to be the norm? How’s that decision by Stella to kill the Challenger and Charger in favor of the EV Charger working out for them? Anyone seen one on the street or even on a lot? Apparently its most reliable feature is to brick itself. What I’m getting at is his policies are specifically in favor of the American UAW worker, and it hasn’t cost them a single contribution or even an endorsement. He did get the rank and file votes in 2024 though, it seems. Even Shawn Fein, who ravaged Trump before the election, is now praising him – and that dude hates everyone.
Daily, Trump’s entire ethos, or most of it, is to dismantle the social safety net, strangle public health agencies, put the most corrupt and unqualified people in high positions, and preserve tax cuts for the rich. Any auto jobs that may come to the US, like the promised move of M-B GLC production, will be to non-unions facilities in the old confederacy. Shawn Fain is dreaming if he thinks D3 production will return to UAW facilities.
Trump got a lot of UAW vote because a large number of the members are gun toting anti-environmentalist pickup drivers. Yes, I know several of them.
I agree that it was a mistake to drop Charger, Challenger, (and 300) when they were still selling reasonably well. Of course Trump would have killed them, since they were built in Canada.
keep spreading utter misinformation, Kit. Nothing you say makes sense. it is exactly the opposite. Trump stole the blue collar workers from the Dems. IT is the REP party that is now the party of the poor.
Environmental issues are luxuries for people like myself, not the working poor, who would rather have a job and no inflation.
“Not Taxing the rich” is a sickening lie. The rich pay HUGE amounts in taxes in the USA. And in fact where the HELL is your moral authority to ROB me of more than HALF my income??????? AND it is ROBBERY, not theft, because it is by FORCE of the Government that you rob Peter to pay Paul, so Paul can VOTE for you.
I as of NO favors and NO handouts from the Gov, just let me PROSPER.
Look ELSEWHERE, like in some EU states, where in fact MANY rich LIE about their income and not only do not pay taxes, but have the gall to ask for Govt benefits.
But do not let the facts stand in the way of your misinformation.
I wonder who here encourages you to spout all this nonsense, Ziggy? Most others do not even bother reading this crap.
your blatant lies make me sick.
But the most amazing stat in the 2024 elections were that the Legally US citizens of HISPANIC heritage increased their vote for Trump to 46%, a MIND BOGGLING figure for a REPUB candidate, and that DESPITE Trump’s continuously badmouthing illegal hispanic immigrants. BECAUSE THEY AGREE that illegAL immigration and open border and letting in 20 million illegals under the corrupt, senile idiot Biden, is NO WAY TO RUN A SERIOUS NATION. AND they see the UNFAIRNESS IN ILLEGAL IMMIGRATION COMPARED TO LEGally doing the work to become a US citizen.
Not that you will Ever learn, Kit, but FOR THE RECORD. Lies SICKEN me.
Somebody here faithfully watches Rachel Madcow at MSNBC and then faithfully repeats her outrageous lies and slanders.
Reminded me, when the Russians were slaves to Communism, they had a saying about their two main, worthless, propaganda newspapers, Pravda, (means ‘truth’ in Russian… LOL) and Isvestia (means “the news”).
They said, Pravda is not Isvestya and Isvestya is not Pravda.
I am reminded of this whenever I see the faithful MSNBC viewers spew their lies and libels here, verbatim.
But it is much worse.
Remember the failed Dem rhetoric “the richest 1%”? Instead of proposing intelligent solutions to the nation’s problems, they purposely demonized the most valuable segment of the population (in terms of the economy), and put the blame on them for Dem incompetence and corruption!
Even long before I read all that MSNBC nonsense here, this attack on the “top 1%” reminded me, chillingly, of somebody who used the same shameless and evil methods in Europe.
Namely HITLER and his propaganda Dog, Goebbels.
Their version of their nation’s “richest 1%” were the JEWS. Many of whom were very successful professionals in many industries and many were very wealthy. Just like the “top 1%” the Dems slander in the US.
It makes me sick to my stomach, and even sicker when I see irresponsible comments from people whose last names are obviously, 100% German, parrot the same sickening line of attack here.
This time, I do not need to stick around this forum and have to listen to MSNBC drivel. I will leave voluntarily. Just waiting for the last straw.
Regulus, if lies sicken you, how can you be such a fan of Donald Trump? Telling lies is much of how he got elected, like spewing drivel about how bad the economy was in 2024, and how he was going to lower prices.
UAW workers I know were voting Republican well before Trump, because of things I mentioned earlier.
Yes, Hispanics voted for Trump in larger numbers than they’ve voted for Reps in the past, and many already regret it as violent thugs from ICE raid their neighborhoods.
For the record, I haven’t watched Rachael Maddow in years, and rarely watch any cable “news.”
Chrysler turns 100 on June 6. I fear they won’t make it to 101, but here’s a good article on the brand’s history.
https://www.autoweek.com/car-life/g64745139/chrysler-celebrates-100-years/?source=nl&utm_source=nl_aut&utm_medium=email&date=051325&utm_campaign=nl01_051325_AUT39853092&oo=&user_email=80a1e0f6bdd0b3295b9c3326868f496e2c85d9b7700b0bd4b09c7d811f009a52&GID=80a1e0f6bdd0b3295b9c3326868f496e2c85d9b7700b0bd4b09c7d811f009a52&utm_term=TEST-%20NEW%20TEST%20-%20Sending%20List%20-%20AM%20180D%20Clicks%2C%20NON%20AM%2090D%20Opens%2C%20Both%20Subbed%20Last%2030D
Kit,
It is a real shame how Chrysler has fallen. It appears they do not know what they want to be. Whatever they want to be it won’t happen with 3 variants of an old minivan. I personally do not like SUVs but Chrysler needs to have a heavy SUV line up to move some metal. They should also put out a remarkable over the top Halo car that sets the tone for what their brand identity is. Maybe that is all in the works but I have been waiting for their return to the world stage for a long time and I fear I will not see it happen.
To me, the recent 300 was what a Chrysler should be. My first car was a 1957 Chrysler Saratoga. The powertrain was great, for the time, even with the non-hemi 354. The body was not so good, rattly, and rusting when a few years old, and before they were dumping nearly as much salt on the roads as they do now.
Maybe the Wagoneer should have been a Chrysler.
@Kit – thanks for the response and your insight. I’m not a UAW member nor hung out with any that I know of. But I pay attention to their bargaining and since it seemed like these policies objectively would help them keep and grow jobs, it led me to ask the above question.
The big get for them would be Mexican and Canadian production brought home for sure. Honda, Hyundai, etc production would move into the south, yes. But it gives the UAW a more target rich environment. They got VW in Tennessee after all. Something I thought would never happen.
It looks like Ford is “wait and see” regarding Maverick and Bronco Sport production. If the Louisville plant building the related Escape has extra capacity, that would seem a cheap place to move production to the US, if they wanted to. That would add some UAW jobs. If there is a big market for Maverick and Bronco Sport outside the US, they may be better off keeping production in Mexico.
Isn’t the ~40 year old Spring Hill Saturn plant the most recent new D3 UAW plant in the south?
If the UAW got the really big transplants, like Honda or Toyota, that would be a real coup. It doesn’t seem likely, though.