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Runtime: 9:30
0:00 Trump Administration to Dismantle GHG Regs
1:16 OEM Profits Drop Due to Trump Tariffs
2:16 Ford Gets $3 Billion Credit Line
2:52 Aston F1 Worth More Than Aston Martin
3:44 Audi F1 Lands Title Sponsor
3:58 Audi To Launch EV Between TT and R8
5:33 Chevy Bolt Sneak Peek
6:04 Tesla Signs $4.3 Billion LFP Deal with LG
6:36 Tesla Drops S & X in Europe
7:22 Mercedes Stops Selling EVs In U.S.
8:15 Bosch’s Radar on A Chip
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
TRUMP ADMINISTRATION TO DISMANTLE GHG REGS
It seems like the Trump Administration is systematically taking apart environmental regulations that have been in place for years, and environmentalists are pulling their hair out. Yesterday, the Environmental Protection Agency proposed to eliminate the government’s ability to regulate greenhouse gases as air pollutants. Back in 2009, the EPA ruled that greenhouse gases are a danger to public health and welfare. That finding is the basis for regulating CO2, methane and other greenhouse gases. But the EPA now wants to walk back that ruling, which would likely undo a host of emission regulations. While the proposal could be finalized by the end of the year, environmentalists have already said that they will fight it in court. The Environmental Defense Fund, citing data from the U.S. Energy Information Agency, says that the lower CO2 standard will raise demand for gasoline, which in turn will push prices up by 18¢ a gallon by 2034, and 75¢ by 2050.
OEM PROFITS DROP DUE TO TRUMP TARIFFS
More automakers are reporting their second quarter results and it’s doom and gloom all across the world, with one exception. Nissan posted a $780 million loss. Mercedes-Benz saw its net profit plunge 69%. Porsche’s net profit fell 66%. They all blame U.S. tariffs for their drop in earnings. While Renault, which is not at all affected by the tariffs, lowered its guidance for the rest of the year, blaming a weak retail environment in Europe and a big drop in sales of commercial vehicles. But then there’s Toyota, the exception. It reported record global sales for the first half of the year, selling 5.5 million vehicles, up more than 7%. However, Toyota imports about 657,000 vehicles to the U.S., about 28% of its total U.S. sales. So, it’s hard to see how it can maintain that rate with the tariffs driving up prices.
FORD GETS $3 BILLION CREDIT LINE
And what does Ford see coming for the future? It just took out a line of credit with JP Morgan Chase for $3 billion. Remember, this is a company that finished the first quarter with $20 billion in cash on hand and another $14 billion in liquid securities. And yet, it wanted to have access to another $3 billion. Of course, the best time to get a bank to approve a line of credit is when you don’t need it. But this probably means that Ford sees a flashing yellow icon on its dashboard and wants to be ready in case things start to go upside down.
ASTON F1 WORTH MORE THAN ASTON MARTIN
Aston Martin is set to sell part of its stake in its F1 team and it shows just how much the value of F1 teams has skyrocketed over the last few years. Aston F1 is now valued at $3.2 billion. The automaker is selling its minority stake for about $147 million, but won’t say who the buyer is since the deal isn’t officially complete. Last year the team was valued at $2.4 billion, so the $3.2 billion valuation is a huge step up. And that’s up from a $1.3 billion valuation in 2023. And here’s the craziest part. Aston’s F1 team is worth more than Aston Martin the car company. Aston F1 has a market cap three times bigger than Aston Martin, which is valued at just over $1 billion.
AUDI F1 LANDS TITLE SPONSOR
And speaking of F1, Audi has named British financial technology company Revolut as its title sponsor. Audi is joining the racing series next year and is taking over the Sauber team.
AUDI TO LAUNCH EV BETWEEN TT AND R8
And in other Audi news, the automaker is planning to launch a new EV that will be “something in between” the TT and R8. Audi’s CEO confirmed that it will reveal the model at the Munich auto show in September. And while it will initially debut as a concept, a production version will launch in two years. Audi isn’t sharing any details yet but it is expected to have better performance than the outgoing TT.
CHEVY BOLT SNEAK PEEK
Chevy is giving us a slightly clearer picture of what the new Bolt is going to look like. It showed several close ups of the model on its Instagram page, which not surprisingly looks like it should fit right in with Chevy’s other EVs. But we think it’s most closely related to the electric Blazer. The brand also showed off the Bolt’s standard NACS charging port and a new set of wheels, which have spokes that kind of fan out. Stay tuned, Chevy says it will reveal more this fall.
TESLA SIGNS $4.3 BILLION LFP DEAL WITH LG
Tesla signed another big deal in the U.S. The other day it secured a $16.5 billion partnership with Samsung to make semiconductor chips in Texas. And now it’s working out a $4.3 billion battery deal with LG to build LFP cells in Michigan, which will be used in Tesla’s energy storage devices. The company currently gets LFP batteries from China, but LG says higher tariffs on Chinese goods have made it harder for American companies to import from the country.
TESLA DROPS S & X IN EUROPE
And speaking of Tesla, the Model S & X are being dropped from Europe. While the company stopped making right-hand drive versions in 2023, it just removed the ability to order a new-build model. Customers can still get a new S or X from the existing inventory, but once that inventory is gone, they’re done for Europe. Tesla did the same thing in China earlier this year, so that just leaves the North American market for the S and X. The company doesn’t break out sales of the models on their own, they’re listed in an ‘other models’ category, which also includes the Cybertruck and Semi. In the first half of this year, Tesla has delivered roughly 23,300 of its ‘other models.’
MERCEDES STOPS SELLING EVs IN U.S.
In somewhat similar news, Mercedes is no longer taking orders for its EVs in the U.S. It says it’s due to “current market conditions” and while it’s supposed to be temporary, Mercedes did not reveal when it will open orders back up. Automotive News estimates that shipments of the EQS and EQE SUVs have declined over 30% this year and as we reported the other day, the company cut prices by as much as $15,000. But in some cases, it’s still taking dealers an average of over 110 days to sell the EV models. Plus, residual values are falling off a cliff. Used EQS sedans that originally cost $100K plus can be found online for around $30,000. So, the order stoppage should not be too surprising.
BOSCH’S RADAR ON A CHIP
The supplier Bosch has developed two new system-on-chips that combine the most important components for radar systems into one chip. The chips support Level 2+ technologies including automatic emergency braking, adaptive cruise control, blind-spot detection and lane-keep assist. Bosch says the chips feature new technology that improves object recognition and increases range around 30% compared to conventional chips at a lower cost. The chips are available to customers now for development and testing purposes.
But that’s a wrap for today’s show. Thanks for making Autoline a part of your day.
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I am not surprised at the EV developments at M-B. They have some compelling technology, but lack in some key areas when you consider the cost of the vehicle. On balance, they just aren’t competitive. Add in the fact that people of means that buy a Mercedes-Benz, in part, are also buying an image. And the styling of their EVs in particular do not contribute to an image of class, sophistication and taste. M-B needs to kick the Millenials out of the styling department.
Is Trump stupid, or just evil, to so relentlessly pursue his anti-science, anti-environment agenda?
Mercedes is likely to stop selling a lot of models in the U.S. Other than GLE and GLS, and the to-be-discontinued EQE and EQS SUVs, everything they sell is imported. They might move production of GLC, their second best seller in the U.S., to Alabama. There should be extra capacity there with the EQs gone.
Absolutely NO surprise at all at M-B. The company itself previously admitted the EQS models were “ahead of their time” (translation: we screwed up), and I can’t tell you how many times I’ve seen videos on YouTube of EQS cars with poorly assembled interiors, make with cheap materials that barely stay together. You’d think that the company that made the 300D and S Class models would know better.
Apparently not.
Tesla probably should have made the Model S and X competitive and not drop them. Maybe they will re-introduce them with a total redesign. Both the exterior and interior need to be completely revamped from top to bottom and front to back to be competitive. Tesla also needs to find its button mojo as everyone is demanding buttons/switches again. I actually think the model 3 and Y are really long in the tooth as well. Their refresh of the Y is a snooze fest to me. They seem to sell so I hope that continues for them. As for me, It would seem there is not a Tesla that appeals to me.
Mike Nassour,
That was my thoughts as well on the Mercedes EV offerings. That and the interior looks like a cheap las vegas hotel room.
Those who live in glass houses should not throw stones, Kit.
Instead of asking if Trump is “Stupid”, look in the mirror, look at the DEM so-called leaders you keep voting for, if you want to see REAL Stupidity
Starting, but not ending, with Idiot Joe Biden (that is his full name, long before he became the SENILE Idiot that he is now), AOC, Eliz, Warren, Cory Booker, and the ugly antisemite SQUAD.
Why don’t you ask yourself how those utter incompetents lost the election to “STUPID” Trump?
You know who else must be REALLY Stupid? The Liberal so-called Leaders of the EU who signed that AMAZING deal with Trump, giving him TRILLIONS (all together), while they did not get DIDdLY SQUat.
Everybody, from CNN and even MSNBC, the ultimate Trump haters, admitted in public that this was a MASSIVE VICTORY for the USA AND for Trump personally.
You explain to me THAT deal. Europeans can’t, and they are still STUNNED By it.
Some “stupid” President!
The Tesla S and X interiors are nicer, and the controls much more “friendly” than the 3 and Y, but not what you’d except in $85K and $90K cars. To me, the S looks the best of Tesla models, and it’s a hatchback which I like, but $85K for the “cheap” version seems a lot.
Regulus, if you don’t realize that Trump is undermining science and protection of the environment in many ways, you are as out of touch with reality as RFK Jr.
I would love to see Trump roll back some of the NHTSA regulations. Not just EPA-things like the Auto Start/Stop that no one likes… but specifically, rules like the 60/40 chassis rule that requires the rear beltline of a car to be within 60% of the total height of the car. I realize that a lot of these regulations are because trucks are not regulated in the same way, and thus cars must be over-regulated to protect against rear-impacts… but things like the elimination of glass headlights, pop-up headlights, hood ornaments, and the fact that every car basically has an egg crate attached to the front and back. Maybe I’m just stuck in the 80s… but kids just aren’t that into cars anymore because they almost all look identical. GM is in such sad state… they only make one car, and it’s being cancelled this year (aside from the Corvette). Do they sell anything people want other than trucks? Ugh… don’t get me started.
Anyway, long time fan. I’ve been listening to you and your dad for over 20 years. Love this show. Thank you!
Used 2022-2023 EQE and EQS are a bargain in the $30’s. Just a few early production models have problems that were never fixed.
Todd J., CT4 and CT5 will be around at least through the 2026 model year. Yeah, the current plan is to replace them with BEVs. Well, most of what I’ve seen is that they will get bigger, like a CT5 and CT6 BEVs.
Yeah, the state of the car business in the US is sad. Ford has only one car, and former Chrysler has none. It will be getting worse, with tariffs likely resulting in European and Asian cars being pulled from the US market.
@Regulus on USA-EU trade deal. I will provide my view on the framework of the trade deal. As far as it is known at this point because it has not been signed, yet. The one-sided import duties are not good for the U.S. consumers. The investments in the U.S. and the purchases of energy (being LNG) quoted are what they have been doing over the past years. So business as usual. It is just underscored, now, to suit the narrative of wins.
The opening of the EU market for vehicles is meaningless: EU citizens buy smaller sedans, station cars and CUVs that are fast and fuel efficient without breaking down. All countries except for Germany have speed limits, but the buyers of all countries want the cars at German-level. The vehicles should be supported by a good dealership network. Because no American ICE vehicles meet those criteria none will be sold in the EU. The only successful American vehicle is TESLA because it is a great product for which you do not need a dealership network. But TESLA sales have dropped after Musk became the ally of the German neo-nazi party AfD.
Is this the same environmental ‘science’ that warned us of an impending ice age within 10 years in the 1970’s. Then it was the acid rain that would cause catastrophe within 10 years. Then the ozone layer that was going away causing global destruction in 10 years. Then it was the the polar ice caps melting to flood coastal areas that never happened (surprisingly banks still cheerfully lend money for long term loans for waterfront property). Now CO2 is ‘evil’, yes that gas that is necessary for plant life and us to exist. Too much of a drop in CO2 would cause the next global extinction.
@Joe G. on climate science. You are making up stuff that you may have read in your news sources. As an engineer graduated from a top school I have read different news on climate science. Which all have become true in the meantime. But hey, feel free to continue discussing this highly complex, high-stakes issue with yourself and conclude that you are right.
The only suggestion I would have for you is the following. The governments of all industrialized countries except for ours invest in the future of energy and emission reduction and we are the only ones that do not invest in the future of energy but subsidize the past. Some countries like China are governed by highly educated engineers and scientists. Of course our casino- and pageant-owner Apprentice host turned president whose aunt’s husband graduated from MIT in 1933 and his equally qualified hand-picked cronies know much better, but could there still be a slight chance that all others are right?
The slight cooling in the mid-1900s was never a dominant theory of a coming “ice age,” and by the late ’70s-early ’80s, it was clear that human-caused warming was happening. Acid rain was making lakes uninhabitable for fish and other life, and something was done about it, in reducing the sulphur emissions from coal fired power plants. Also, urban acid rain caused by high sulphur diesel fuel was damaging buildings and monuments in Europe. That was fixed by going to low sulphur fuel. The hole in the ozone layer was very real. Talk to someone who lived in New Zealand in the 1980s. Something was done about that too, the Montreal Protocol, which phased out production and use of most HFCs and other ozone depleting substances.
Yes, some atmospheric CO2 is needed for plant life, but the level has increased about 50% since the beginning of the industrial age. That does not do anything for plant life, but warms the planet.
Joe G —
Point taken, but one could argue that te sips that were taken at the time, is what was needed to hold back catastrophe, right?! To your point, though, I guess time will tell if rolling back these rules will make a difference.
Wasn’t the Regulus a mid 50s Naval cruise missile designed to destroy?
As far as loans on beachfront property, it will 100 years from now, not 30 years, that many current Florida beach towns will be depopulated because of sea level rise.
Regulus likes to SCREAM with his all caps.
Personally I believe the idiot in the WH is not too bright. & evil.
Sorry for the political post.
I am a proponent of reducing the western allies’ reliance on energy from parts of the world that hate us (Venezuelan, Russia, and the Middle East). If shifting 50% of new vehicle sales to BEV can achieve that goal (without creating a dependency on other oppressive regimes for raw materials), then I’m all in.
Also, we have quickly forgotten the annoying (at best) fumes emanating from the tailpipes of vehicles in the 1960s. We should not go backwards.
There is an opportunity to ease some regulations. As the market saturates with vehicles equipped with Automatic Emergency Braking, we really no longer need high mount stop lights. We may also need to re-look at many other items and passive crash test standards. But the governing bodies act like a one way ratchet.
A thing that is very cheap to do that I think should be mandated, is automatic on headlights. While I am generally conscientious about safety related things, I once found myself driving in the dark without tail lights in my 2024 Prius LE. Between the car’s using slightly dimmed low beams as DLRs, and street lights, it was not obvious to me that I was driving without lights. While I rarely do it, every late afternoon, I see several vehicles without lights, some, of course, being “invisible” both on the front and back. Meanwhile, much more expensive stability control is mandated, which I have never activated, except intentionally a couple times on slick surfaces “for fun.” For marketing purposes, Toyota chose to not have auto on lights on the low trim LE Prius, even though the hardware to do it is probably there on all of them. It should be required by law.
Victor West:
Unlike the useless, pathological Trump Haters here, we are here to give you the right answers.
“Regulus” is a constellation, and it was one long before the Navy used (or did not use) its name for one of its missiles.
“The Fault, dear Brutus, is not in the Stars, but in Ourselves” (from MEMORY. You can google it and check it)
https://en.wikipedia.org/wiki/Regulus
And if you just typed “Regulus” in Wikipedia search, you would find that I was not exactly right.
Regulus is the brightest STAR in the Leo Constellation.
This makes it the perfect name for me, as my birthday was barely a week ago, on the first day of the above (as used by the charlatans who call themselves “astrologers”)
Regulus means “petty king.”
“Kit” means silly guesser. Also, dog food.
And a word about the alleged “science” of the left.
Science is not “Democratic”. The laws of Nature are not a matter of consensus of “most of the experts in a field”.
This may remind you of the 2,000 or so clowns who got a Nobel Prize, including “scientist” (in Kit’s mind only) Al Goron, who came at a consensus about global warming, which they soon renamed “climate change” to have all their bases covered in case their speculations proved wrong.
Their ‘rationale’ is that if 90% of the experts agree on something (and dare to disagree!!! You will never get funding, or tenure, and your career will be over), it must be a law of Nature.
To see how laughably wrong this is, you only need to go back less than half a millennium, in the early 1600s, when practically 100% of the “experts” insisted that it is the SUN that moves around the Earth, and only GALILEO GALILEI knew better. (and at the end, he had to tone down his theory so the Pope would not burn him at the stake, as he DID burn the other scientist, JORDANO BRUNO).
If those 2000 idiots with their “Earth is stationary, SUN is moving around the Earth” “consensus” were alive 20 years ago, I bet they would also get a Nobel Peace Prize. But who cares? Didn’t the billionaire terrorist Yasser Arafat ALSO get a Nobel Peace Prize for stopping butchering total innocents?
Now if you characters want to see what a REAL, Distinguished Scientist and Inventor, honored all over the world, looks like, check this one out:
https://en.wikipedia.org/wiki/John_G._Trump
MIT Phd AND Professor John George Trump was the brother of Donald Trump’s father. He was a gifted child from the get go, not some “DEI HIRE”. AND he was highly DECORATED for his life saving inventions, who had a big impact in W W II in favor of the ALLIES, even by the King of England.
WHat a contrast with the lifetime idiot (and now senile idiot) Joe Biden AND those fools that still do not regret voting for him!
It’s interesting that “Regulus,” who claims to be a scholar at a top tier university, is so enthralled with a lunatic having major goals of destroying American universities, destroying public health agencies, and destroying environmental protection efforts.