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Runtime: 11:07
0:00 China Rare Earth Ban Triggering Auto Crisis
1:05 Has U.S. Fracking Peaked?
1:38 Ford Could Outsource Engines
2:37 Tesla Tries to Block Crash Data Release
3:42 Ram Revives HEMI V8
5:18 BYD Sues Critics in China
6:18 NIO’s Financials Worsen
7:01 UK Production Hits 70-Year Low
7:35 Earn Money Plugging in Your EV
8:21 EV Fleets Can Also Support the Grid
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
CHINA RARE EARTH BAN TRIGGERS AUTO CRISIS
Back in April, when we reported that China was clamping down on exports of rare earth minerals, we predicted that it could really hurt car production outside of the country. Well, that’s happening. Yesterday several suppliers in Europe had to stop production because of a shortage of rare earth magnets. Today, Suzuki had to do the same thing for the same reason with the Swift. And that’s Suzuki’s best selling car. In the U.S., MEMA, the supplier association, called for immediate and decisive action to address the shortage. It said suppliers could have to stop making automatic transmissions, throttle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras. China stopped exporting these critical materials in retaliation to President Trump’s tariffs. But so far, the White House has not said anything about the rare earth shortage.
HAS U.S. FRACKING PEAKED?
Speaking of shortages, could the U.S. fracking boom be hitting a peak? Production in the Permian Basin, a massive oil and gas reserve in Texas, has flatlined for the last year. One reason is the price of oil. A year ago it stood at $75 a barrel. Today it’s $63. Frackers drilling new wells in the Permian basin need about $61 to be profitable. And with global oil prices on a downward slide, there’s little wiggle room left.
FORD COULD OUTSOURCE ENGINES
A decade ago, Sergio Marchionne, then CEO of Fiat-Chrysler, published a paper called “Confessions of a Capital Junkie.” In it he argued that different automakers were crazy to spend billions of dollars to build so many engines and transmissions that were almost exact clones of each other. He said the industry could save billions by consolidating its powertrains. Renault must have heard that message and spun off its powertrain operations as a separate company called Horse. Geely quickly signed up to be a partner. And now Ford’s vice Chairman, John Lawler, says “ICE powertrains over time are going to need to consolidate.” We think a logical step would be for Ford to partner with Horse or maybe even Volkswagen in Europe. Ford’s passenger car sales in Europe are now under half a million a year, yet it has engine capacity in the region of well over a million engines a year.
TESLA TRIES TO BLOCK RELEASE OF CRASH DATA
Last year, the Washington Post filed a lawsuit against NHTSA to get access to records about crashes when driver assistance systems were in use. The newspaper says that the agency does release some info but it “withholds critical details about the technologies in use and the circumstances and locations of the crashes.” And now Tesla is asking a judge to keep that data from going public because it says the information is confidential and would allow competitors to assess its technology. But lawyers for the Post say that the information they want about Tesla’s hardware and software is not private, arguing owners can access the info within their vehicle.
RAM REVIVES HEMI V8
Yeah! It’s got a HEMI again. Ram CEO Tim Kuniskis said the brand “screwed up when we dropped the HEMI” in the 1500 pickup, so it’s bringing the 5.7L V8 back for the 2026 model year. The move was one of the first things Kuniskis did when he returned to the company after former Stellantis CEO Carlos Tavares left in December of last year. His concern was losing customers who already have a HEMI that return to buy another, only to find there’s not one. The turbocharged in-line 6-cylinder, which is still the standard engine for the truck, actually makes more power and torque and gets better fuel economy than the V8, but Kuniskis says HEMI is almost like its own brand and trying to get back any customers that leave would be really expensive. So, it’s actually more efficient to bring the HEMI back. However, the trucks will no longer have the “HEMI” logo on the fender. Instead designers came up with what they call a protest badge. It’s an outlined version of the Ram’s head, whose body looks like a HEMI V8. The engine comes standard with a 48-volt mild-hybrid system, or what Ram calls eTorque, and the entire powertrain setup makes 395 horsepower and 410 lb-ft of torque. The HEMI will be a $1,200 option, except on two of the higher trim models, which come standard with the high-output version of the in-line 6-cylinder turbo.
BYD SUES CRITICS IN CHINA
BYD isn’t fooling around when it comes to what it perceives as online defamation. The automaker says it’s taking legal action against 37 influencer accounts and has placed another 126 others under internal monitoring. BYD is even paying people between $6,900 and $690,000 for defamation leads. The automaker says it has faced repeated online attacks over the last several years involving false or misleading info that has hurt its brands image. BYD says it welcomes criticism but says it won’t “tolerate defamatory content or false accusations.” While BYD has called the attacks “coordinated,” it hasn’t provided any public evidence yet. Even so, BYD has already won several cases, with some social media users being fined nearly $14,000.
NIO’S FINANCIALS WORSEN
Chinese automaker Nio struggled in the first quarter. Its revenue and operating profit missed projections and its gross margin hit a new low. It only has $1.3 billion in net cash, and that’s prompting some analysts to warn that NIO has less than a year to stabilize its financial situation. But despite that, the company continues to expand, entering 15 new markets this year and it’s planning to launch its low-cost Firefly brand in the UK in October. Its only model, a small hatchback, went on sale in China in April with a starting price of $16,500 and so far, 3,900 units have been sold.
UK HITS 70-YEAR PRODUCTION LOW
And circling back to the UK, the auto industry is begging for “urgent action” to help boost car production. According to the Society of Motor Manufacturers and Traders, automakers built just over 59,200 vehicles in April, down 16% from a year ago. That’s the lowest level since 1952, not including disruptions caused by the pandemic in 2020. U.S. tariffs, excess production in March and a late Easter all contributed to the drop.
EARN MONEY JUST BY PLUGGING IN YOUR EV
One of the benefits of bidirectional charging is the ability to use an EVs battery pack as a source to help support the electrical grid. The idea is to charge the vehicle when rates and demand are lower and then provide the stored electricity back to the grid when demand and rates are higher. There’s even the chance as an EV owner to earn a little extra money since you’re providing a service to the energy providers. CarNewsChina reports that several pilot programs are underway in China and one owner that’s been participating in a program since 2022 has provided over 15,500 kWh of energy back to the grid and estimates he earns about $70 or about 61 euros a month.
EV SHARING FLEET WILL ALSO SUPPORT THE GRID
And along similar lines, Renault says it’s providing a fleet of 500 EVs to a car sharing business in the Netherlands that will use the vehicle’s bidirectional charging capability to help balance the grid in one of the country’s cities. The fleet will specifically be used to store and distribute renewable energy, since 35% of the city’s rooftops already have solar panels, which means there will be access to green electricity even when there’s no wind or sun. When combined together the EVs can store up to 10% of the renewable energy generated in the region. And when they’re not being used to support the grid, the vehicles can be rented out by people in the area.
But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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It makes sense for Ram to again offer the “hemi” in pickup trucks. They have lost a lot of sales by using only the turbo six. When people drive the 5.7 and the six back-to-back, they may discover that the new engine works pretty well, and the take rate for the V8 may settle in at 10-15% as it has with F-150, but for now, Ram needs the V8 as an option.
One of the people that BYD sued and even had referred them to the CCP for criminal charges was a person whose family died when their BYD veered into a tree while it was in autonomous driving mode. Apparently saying that your family died while in autonomous mode is “slander” according to BYD. Another was a person who complained that his BYD rusted and had an overpowering formaldehyde smell that the dealer acknowledged but stated it was normal and thus would not correct. That story was considered “slander” and also referred to the CCP for criminal prosecution. If a company has to resort to those kinds of tactics, there are big problems at that company.
$1200 extra for a Hemi seems a bit steep for an engine that is less efficient with less horsepower and torque and has a mandatory enhanced exhaust system. It might have been more prudent to make the enhanced exhaust system optional and drop the extra cost option.
The V8 is a bargain in the Ram, compared to in an F-150, where it’s a $1660 option. Anyway, it will be interesting to see how the mix sorts out after a couple years.
Hey Sean,
Just so you know, Permian (as in the Permian Basin in West Texas) is pronounced PER-mee-un, not per-MEE-un. By the way, the high schools Midland Lee and Odessa Permian were the inspiration for the book and TV series “Friday Night Lights”.
Thanks for keeping us informed on what’s going on in the automotive industry!
Regards,
Steve Harkins
Chuck, you are right on the money. RAM doesn’t want to lose customers by not offering a V8, but due to the fuel economy regs, they don’t want to build anymore V8’s than they absolutely have to. The whole reason for bringing out the Hurricane Inline 6 was to improve their fleet MPG. Charging more for it means they are addressing the consumer’s desire for a V8 but making them think twice about if they really need it. I imagine those who do will gladly pay the upcharge. And, as Kit and I have said before, this transition would have gone more smoothly if they had offered the V8 as an option while making the Inline 6 the standard engine, right from the beginning. They skipped the step that Ford had already shown was key to getting buyer acceptance of 6 cylinder power in a full size truck. I also think Kit is right in his prediction of V8 penetration. And, it will happen faster than it did at Ford, thanks to Ford blazing that path for the industry.
The hemi is back,despite being less powerful and not as efficient. But picking an optional V8 just feels better somehow over any 6.
My lease is up on my Ram and I want the hurricane engine. The only thing I don’t like about them is they forced the start stop tech on a turbo engine which seems like a horrible idea. It does have the ability to turn it off but I believe it needs to be done after each start.
As for BYD. Thank you China for living up to the stereotypes of China junk as some of us cautioned about would happen.
Vroom vroom, bah bah bah bah bah, beep beep. That’s the language you have to speak to run Ghrrrysler successfully. At last, some real leadership.
Lambo,
Hopefully they have an electronic pump to keep oil circulating when in autostop mode. Otherwise yes, that is a terrible idea to let oil coke on a hot turbo at stop lights.
how can you ask, with a straight face no less, if… ‘fracking has peaked’? It is obviously just an unimportant, local ‘peak’ before it dropped due to low oil prices, as you mentioned, AND, whenever oil prices rise again, for whatever reason, unless the environazis come to power and outlaw it, fracking will rise again. Is this so hard to see?
It is great to have fracking available, because there will not be any huge upward price shocks, like there were in the 70s twice, or as recently as in 2008. The existence of the fracking threat to the thugs at OPEC (who fund terrorists with their oil money) will not let them do this again.
And isn’t that special. Now not only will two cars made by different makers look as different as two eggs, they will also have identical engines? So what kind of a farce is to call one Ford and the other Toyota or Hyundai? Ridiculous, and reminds me of the rebadge jobs of the 80s and 90s at bad old GM and its lackey brands.
Lambo, I think stop/start reverts to “on” for all brands with each start. If the switch is convenient, and you don’t like S/S, it’s easy to hit the switch each time you start the car. I always use seat belts, and that’s more work than hitting a button.
I’m wondering if default “on” for S/S is required to get CAFE credit, however that works, but it wasn’t always required. S/S stays off on a 2018 Mini if you turn it off, but not on a 2023.
MERKUR, does anyone have electric oil pumps as you describe? As far as I can tell, neither Mini nor Porsche does.
While Ford might outsource engines, I would not be surprised if it’s just in Europe and if outside the EU, it will probably be just four and three cylinder engines. In other words, I don’t see them using powertrains other then their own, for the Mustang, as well as any of their pickups. I don’t see them letting anyone else use those power plants in vehicles that compete with their pickups and trucks. There is not a lot of separation in efficiency, with a number of the three and four cylinder engines in mass market vehicles, especially in the EU. I could see a Ford Maverick (Escape) in Europe with a Hyundai Tucson engine, but Ford might not want to have a US Explorer, Bronco (Ranger?) or Aviator with an engine that comes from a second or three party. Ford is also using a 10 speed transmission in some applications, so would they also use off the shelf transmissions too?
I was a little surprised that GM and Ford are now sharing transmissions. No one seems to care about that, but I doubt if many F-150 buyers or Mustang buyers would want a Chevy V8 in their vehicles. Similarly, Chevy pickup buyers wouldn’t want a Ford turbo V6 in their trucks.
With some vehicles, including Maverick hybrid, I doubt if most buyers would care, as long as it worked well. Maverick hybrid and Escape hybrid owners I know would both be happy to have Toyota hybrid powertrains.
Some engines like the HEMI, are ‘signature’ engines, but most (including almost all 3 and 4 cylinder engines) are just lumps that don’t matter. Outsourcing them would be fine as long as the engine was adequate. More important to most OEMs would be where the engine is made and what it costs With the US introducing the idea of ‘local content requirements’, it would make sense to have a standard four cylinder engine that is made in each market, so it counts as local content. I would expect this to happen in the US, EU, Canada and Mexico for political reasons and China at many smaller brands for cost reduction and survival reasons. Someone like Ford that is represented in lots of markets could use whatever local engine was available, without having to have their own engine factory locally.
Lambo2015, My wife’s ‘19 TourX has a turbo 4 and s/s with no on/off switch at all. The aftermarket produces a plug in defeat for the s/s that tells the computer that the hood is open and apparently the car is being serviced. The aftermarket will come through for you also. It hurt me every time the engine stopped and I heard the starter engage once again.
I was really waiting for the 3.6l v6 from the Regal GT to make it to the TourX but not enough performance wagon lovers like myself for GM to make the move. The turbo4 is a good engine for the car but an extra 60hp would have been great.
Thanks, Steve Harkins, for pointing out the correct pronunciation of the Permian Basin. It was painful to my ear when Sean repeatedly mispronounced it.