Follow us on social media:
Runtime: 9:51
0:00 Americans Losing Interest in EVs
0:51 Xiaomi Predicts Profit in the Second Half
1:42 China Concerned Price War Has Gone Too Far
2:41 China Dealers Warn About Inventory Dumping
4:02 Toyota Wants To Take Supplier Private
5:35 20K VW Workers Accept Buyout
6:04 Lucid Puts Big Discounts on the Air
6:54 Toyota Co-Develops Hydrogen-Powered Sauna
Visit our sponsor to thank them for their support of Autoline Daily: Bridgestone, Intrepid Control Systems and Teijin Automotive.
This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
AMERICANS LOSING INTEREST IN EVs
Electric vehicles are less popular with U.S. car buyers. According to a new survey from AAA, 16% of respondents said they are “likely” or “very likely” to buy an EV as their next vehicle. That’s the lowest level since 2019. Meanwhile, the number of those surveyed who said they’re “unlikely” or “very unlikely” to buy an EV increased to 63% from 51%. The number one reason buyers said they’re not interested in an EV is the high replacement cost for batteries. People also cited the high price of EVs, lack of charging stations and range anxiety, as reasons they’re not interested in an EV.
XIAOMI PREDICTS PROFIT IN SECOND HALF
Despite the rip-roaring success of electric cars in China, only a couple Chinese EV makers are profitable. But another may be about to join the list. Xiaomi’s CEO predicts the company’s EV business will turn profitable in the second half of the year. In the first quarter Xiaomi lost less than $70 million, which is equivalent to a rounding error in automotive terms. One reason why Xiaomi may turn a profit soon is that the CEO says it’s not going to engage in the price war, which is killing the profitability of automakers and their dealers. If he can hold to that it will be a remarkable achievement. And maybe he can. The company can’t keep up with demand for its SU7 sedan, and its YU7, which is targeted directly at Tesla’s Model Y, is about to hit the market.
CHINA CONCERNED PRICE WAR HAS GONE TOO FAR
Speaking of that price war, there’s growing concern in China that it’s gone too far. Last week, BYD fired off another round of price cuts, this time averaging $7,500, and the reaction was immediate. The China Association of Automobile Manufacturers and the Ministry of Industry and Information came out with public warnings against big price cuts. The People’s Daily, which is the official newspaper of the Central Committee of the Communist Party of China, warned that the price war could cripple the auto industry, just like it damaged the Chinese motorcycle industry. Great Wall Motors and Chery attacked BYD’s latest price cuts, and BYD’s stock price took a pounding. But don’t expect BYD to back off. So far this year, its sales are running about a million units behind its goal of selling 5.5 million cars.
CHINA DEALERS WARN ABOUT INVENTORY DUMPING
And car dealers in China are upset with automakers dumping too much inventory on them, which is hurting their profitability even more. Earlier today, the China Auto Dealers Chamber of Commerce issued a statement urging automakers to stop forcing dealers to stockpile cars. They want automakers to set reasonable production and sales targets and to stop offloading inventory on them. Some dealers have had to close their stores because they struggled to make a profit and car dealers are warning more will close if automakers don’t change.
TOYOTA WANTS TO TAKE SUPPLIER PRIVATE FOR $33 BILLION
In late April we ran a story about how an investment group that included personal financing from Akio Toyoda offered to buy out Toyota Industries, one of the suppliers to Toyota. But it turns out that was only part of the story. The Toyota Group announced that it, investors and Akio Toyoda are proposing to take Toyota Industries private by buying out its shares for just under $33 billion. In order to do that, they would create a new holding company that Toyota and its real estate company would invest just over $6.1 billion into. If approved, the bid would be finalized around the end of the year and they say it allows Toyota Industries to focus on long-term growth and investment. But this would also be a bit of a landmark deal because it starts to walk back Japan’s keiretsu system, which is a set of companies with interlocking businesses and shareholdings. While this once allied those companies together, some say the keiretsu system introduces conflicts of interest, locks up capital and can ignore minority investors. So, as part of the move to take Toyota Industries private, Toyota Motor, AISIN, DENSO, and Toyota Tsusho will all sell their shares in Toyota Industries in order to dissolve any cross holdings between the companies. And after that only Toyota Motor will continue to invest in Toyota Industries.
20K VW WORKERS ACCEPT BUYOUTS
Volkswagen is on track with its restructuring plans. The automaker says that 20,000 workers have agreed to buyouts to leave the company by the end of the decade. Last year, VW reached a deal with labor unions to cut 35,000 jobs and slash production by 700,000 units in Germany by the end of the decade. The company needs to cut costs because of weaker demand in Europe and tough competition in China.
LUCID PUTS BIG DISCOUNTS ON THE AIR
Sales of the Air are probably not where Lucid wants them to be because it’s offering some pretty significant discounts on the electric sedan. Electrek reports that people who lease the car can get up to $31,500 off Grand Touring models. That does require nearly $7,000 down at signing, but it’s about half that for Pure and Touring models, which have discounts of $21,500 and $26,500, respectively. You need to be able to take delivery of the vehicle before the end of June to get the discount, but there will still probably be good deals on the Air even after that. Last month Lucid was offering anywhere from $15,500 to $20,500 off the model.
TOYOTA CO-DEVELOPS WORLD’S 1ST HYDROGEN-POWERED SAUNA
It’s always interesting to see the non-automotive products that car companies get involved with and here’s another. Toyota partnered with Finnish sauna and spa company, Harvia, to create what they claim is the world’s first hydrogen-powered sauna. The prototype features Toyota’s hydrogen technology, which means it doesn’t emit any CO2 emissions during use. The two companies will showcase the concept at two events in Finland this summer but no word if they’re going to sell them to customers yet. This may seem like a strange collaboration for Toyota but the automaker says the project aligns with its effort to promote hydrogen use across different industries. And you may remember a story from February, where Toyota is sending out mobile mist saunas as a way to help assist Japan’s aging population.
But that’s a wrap for this show. Thanks for making Autoline a part of your day.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
Will Lucid be able to survive on its own or do they need to merge with someone else?
I am aging. I had no idea I could be helped by a sauna. That’s a bullet point I need to share with my wife. I will be carbon neutral of course, burning wood for heat.
Barry, as long as the Saudi Sovereign Fund continues to invest money in Lucid it will stay afloat. But unless it brings its assembly plant up to full capacity, it’s hard to see how it can survive.
Lucid really needs to refresh the styling of the Air. It doesn’t look bad, just doesn’t look particularly fresh either. They do have the Gravity SUV so that is a good thing as SUVs seems to be where it is at for sales, even if I do not prefer them myself.
They also need a cheaper model along the lines of the Model Y if they want volume sales. Tesla would have failed by now if they had not introduced the cheaper Model Y and to a lesser extent the Model 3. The higher end market is both small and very crowded by some really well established players both EV and ICE. It is very hard to be successful in that space as an established player let alone a new comer that keeps teetering on the edge of bankruptcy. A cheaper variant that can open them to a greater market size is just what they will need in my opinion.
Lucid and Rivian have sugardaddies. For Lucid it is the Saudis, and for Rivian it’s the 100,000 Amazon vans (which do not show any Rivian ID on them) Bezos ordered. Whenever the Saudi investors get tired of losing one bore billion in Lucid, is when it goes broke.
The number of superchargers is just one issue. Even if there were plenty of them, there are still the problems of their reliability (many do not work when you get to them), the existence of lines of EVs waiting to be charged, ( frequent sight in the LA-Las Vegas corridor) and the much longer charging time compared to ICEs.
Since less than 5% of Americans currently own electric cars…..16% sounds like there is plenty of potential for growth despite “less interest”. The other fears pretty much evaporate if you use an electric vehicle for your normal daily use and not cross country travel.
Anyone fool enough to buy a Lucid before these massive discounts were announced are probably pretty salty today. Of course that number is probably in the range of tens of people. Because why would any sane person spend many thousands of dollars on a Lucid that will depreciate like a stone and probably be an orphan of bankruptcy in the near future. Lucid needs a white knight investor like Rivian somehow suckered VW into being. But any poor decision by VW is music to the ears. And having to engage a 20k employee buyout to help stave off market share loss to China thanks to the ineffective yet economically destructive green policies of their own government makes me laugh and laugh.
I saw a Lucid up close recently at a show, and it looked nice. The interior was better than any Tesla. As others have said, though, how long will the Saudis keep pouring money into them. If they fold, I hope someone takes over making their exceptionally efficient powertrains.
What the US, and probably other countries need to increase EV interest, is home charging for the tens of millions of people in apartments and condos.
Daily Driver —
Until the change of administration, IMHO, Lucid and Rivian was on a similar trajectory as Tesla. In that, they were going through really tough times, as any fletching company would, but there was some light at the end of the tunnel as they worked their way through it, much like Tesla. The wrench came in the change in administration, as the new leadership had a different way of thinking and made a pivot in direction, as is their prerogative. Rivian got the investment from VW, while The Saudi conglomerate is still supporting Lucid for the time being. Tesla really turned a corner when they put the Model 3 and Y on the road and once Rivian and Lucid release products into that more affordable price point, (should they make it that long) their financing may be on much less shaky ground.
If Americans are losing interest in EVs, then why is the administration using tariffs to keep Chinese EVs out? I think they know that, if they did, people would see how good a product they have, that living with an EV is not as hard as they thought and that it covers 80-90% of what they need, at a price point they could live with! The question would then become, how willing will individuals be to spend their money on vehicles made in China, as well as top dollar on iPhones made there too, from a country that has some of the worst human rights violations. If purchases off the iPhone is anything to go by, it might not be as hard as some would to believe!
Kit —
I can’t remember where I saw it, but there was a report/article that a company in Europe had come up with a curbside EV charger. Instead of concrete, it looked like a rounded, metal curbside and the wiring was behind a piece of heavy gauge metal material. I didn’t know if this was a concept, one off or just wishful thinking, for I don’t get a chance to read it, but it just stuck out to me. Out side of ICE vehicles parking in front of it when an EV driver needs to use it, thieves breaking it open to steal the copper wiring or it being frozen closed in the winter, it’s an interesting fix it]f it is real.
I’m seeing quite a few Chinese cars, Buick Envisions, here in Kokomo, Indiana.
I recently got a new Samsung phone. I’ll see if I can determine where it was made. I think they are now making stuff in Vietnam.
I may have mentioned I did see a Lucid before I moved to the summer home, in my condo complex in MI. It was parked in a driveway. It looks Ok, but it is much less imposing in person. It is not as big as an S class or even a Tesla S. It is closer to an E class, and in fact it has less interior volume, since its height is much lower than the E. THis is why it looks good, most wide and low cars do. Yet I was surprised to read that it has plenty of room in the cabin, and I tried to find out why and how this is possible. It seems the seats are designed as in my old little 91 Civic hatch, to be very low, so you almost sit on the floor, or they are tilted so you don’t sit upright, or both. I assume the trunk should be much smaller than the huge trunk in the E class (it is even bigger than an S class trunk, the E being a family vehicle design).
YOu can get slightly used Lucids with 1,100 HP for five figures. But given the questions about the long term and all the drawbcks of EVs, it’s not in my short list.
The other day I looked at an auction site and there was an old i3 with the range extender that sold for something like $8k. I checked out the specs, and it has a KYMCO (Taiwanese scooter maker!) 650 cc engine, not any BMW, and a tiny 2.4 gallon tank (in CA due to their idiotic regs, 1.9 gal!!!). My E 320 tank is 10 times bigger than the CA tank. So it occured to me that while this is a lousy Range EV as it is, one can almost DIY, add a big tank to the ridiculous 1.9 lt tank, and it will have TEN times the 80 miles extending, ie 800 miles (plus the EV miles!) Then you will never have to waste your time in the accursed superchargers when on a long trip, and never have any range anxiety. In my case, I’d take less than 3-4 long trips a year, but who knows. The i3 is tiny outside but very boxy and bulky so it should have all the interior volume to do the mod. AND thus it will be a proper Plug-in.
Regulus, In CR’s charts, the Lucid Air is roomier than an E-Class, both in cabin and luggage space. The Lucid is a little longer and wider than the E-Class, but as you say, lower, 56 inches vs 58. For reference, Camry and Accord are 57 inches high. The Lucid Air and Model S are, essentially, the same size, same length, with the Tesla one inch wider and taller.
Yes, the engine in the i3 is made by Kymco, and is the same engine used in BMW C 650 scooters. Of what I have heard, it is very reliable, as are the engines in the Suzuki and Honda maxi scooters.
Doubt actual interest has changed much toward EVs. As I believe lots of the previous studies were purposely optimistic in the way the questions were phrased. 16% seems about right when it comes to actual interested people willing to throw down $50k or more. Asking people if they would consider an EV for a next purchase without the caveat of all its downsides is misleading. It’s like me asking would you on your next trip consider flying on the next generation supersonic jet that has actual all 1st class seating. Without anymore information most all people will say they would consider it. But then explain it only departs from NY or LA and will only be for international flights and average cost will be $5000 and quickly reality sets in and you get a more actual interest. Same happened with these EV surveys. Imo
Today as I walked down to the beach for my morning swim, I got another look at the neighbor’s BYD. This time it was parked with its butt showing, and it did not have any visible exhaust pipes, so I assume it’s a pure EV. I wonder how they can operate this thing here where the supercharger network is still embryonic and much less dense than even in the US. If this was a villa with a 4 car garage, as other homes on the street, I’d assume it is their daily chores city car and they got others for trips etc. But this little plot is built to the max, it includes two condos and one apartment, the owner could not sell them (as people with this kind of $ prefer a single family house), and eventually moved to the apt and has his two kids and their families live in the condos, whether they bought them or were gifted to them.
Can the people with the BYD run an extension cord from their home to the car? If so, and if they don’t drive a lot, “level 1” charging would work for them.
I don’t drive a lot, but I also like to go on long trips with the same car several times a year. As I said many times, most people are not billionaires and cannot afford an EV for short distance driving and a real car for the long trips, per person (so 4-8 car per family).
The place is a plot of land and the 3 units, I am sure they can charge them at the ground level with minimal extension cords, AND installing a Level II charger, which in the US costs $2k if you do it by the book (Licenced elecrricians etc), here, where we already have 220 V electricity, will cost a pittance.
HOWEVER, as I made it so clear, all of that does not help them one bit. They are not billionaires, they do not have 4 cars per family (there are barely 3 cars for the 3 families there), so I think they are fools, and doubly fools to buy the BYD instead of an RX hybrid which would do a far better job.
Oh, and BYDs sold here are NOT the cheap-ass $5k and $10k toys you see on this show, they are 5 times as expensive.
PS 2 back on the i3 Kymco engine, I’d be a world class sucker if I paid BMW money to get a cheap Made in Taiwan engine, even if it is purported to be reliable, and same with bMW motorcycles with kymco engines. In fact, many here drive Kymco scooters, which are still dirt cheap (non-electric 50 cc are as common as flies and barely cost $1k worthless 2025 euros.