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Runtime: 12:17
0:00 Tesla Boosts Production at German Plant
0:35 Musk Buys $1 Billion Worth of Tesla Stock
1:02 BYD’s Market Cap Plummets By $45 Billion
1:30 China Auto Industry Expected to Shrink Fast
2:03 UAW Seeks Full Pensions & Healthcare for Retirees
2:28 Magna to Build EVs For Xpeng In Austria
4:12 Amazon Testing GM BrightDrop Vans
4:47 Ram Cancels Electric Pickup Truck
6:07 Chrysler Scales Back EV Plans
6:44 WeRide Launches Robobus In Belgium
7:29 Toyota E-Palette Shuttle on Sale in Japan
8:31 Autoline Drive Modes Poll Results
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
TESLA BOOSTS PRODUCTION AT GERMAN PLANT
Good news for Tesla. Its plant in Germany is going to increase production for the rest of the year because of strong sales orders. That plant ships Model 3s and Ys to 30 different markets and it says its seeing increases across the board. We know that sales are strong in Denmark and Turkey, but they’ve shot down this year in all the major countries in Europe. However, maybe this is a sign that things are turning around
MUSK BUYS $1 BILLION WORTH OF TESLA STOCK
In other Tesla news, Elon Musk bought $1 billion worth of Tesla shares, as both a sign of his confidence in the company, as well as a response to the board’s offer to pay him $1 trillion, which includes him staying on and boosting the company’s market capitalization to $8.5 trillion. Tesla stock jumped 7% on the news, sending its market cap to $1.24 trillion.
BYD’S MARKET CAP PLUMMETS $45 BILLION
We’re starting to see more cracks appear in China’s auto industry. You may remember that a couple of weeks ago we reported that BYD said it would miss this year’s sales target by nearly a million units. And its net profit dropped 30% in the last quarter. So shareholders are running for the exits. They’re dumping the stock, which is down 30% from its high this summer, wiping out $45 billion of market cap.
CHINA AUTO INDUSTRY EXPECTED TO SHRINK FAST
The Chinese government is warning its auto industry about “involution.” We had to run to the dictionary for that one. It means a shrinkage of body parts in old age. What it means for the Chinese auto industry is that it better get ready to shrink fast. A couple of weeks ago we reported that the CEO of Xpeng warned that only about 5 Chinese automakers would be left standing by 2030. Now, the central Chinese government is taking Dongfeng private and will sell off its EV operations.
UAW SEEKS FULL PENSIONS & HEALTHCARE FOR RETIREES
Now over to the U.S. where UAW President Shawn Fain warned the Detroit Three that he’s going to demand full pensions and full health care for retirees in the next contract. That would add a lot of tension to those negotiations. Pensions and health care were the two main reasons why GM and Chrysler went bankrupt in 2009 when the credit markets froze.
MAGNA TO BUILD EVs FOR XPENG IN AUSTRIA
In March, Magna signed contracts with a couple of Chinese automakers to build EVs at the supplier’s plant in Austria. While the automakers are importing semi-knocked down kits to be assembled, there will be enough local content for them to avoid the EUs tariffs on imported Chinese EVs. Magna is also benefiting from the partnership. That plant in Austria has the capacity to make about 150,000 vehicles a year, but Magna lost contracts with Fisker, Jaguar, BMW and Toyota, which only left the Mercedes G-Class. And even before all those models were gone, in 2023 the plant made just under 72,000 vehicles. But last week Aion, a brand of GAC, kicked off production of a couple of models there. And now XPeng will send kits for its G6 and G9 models to be made by Magna in Austria. Volume will likely be low at first, but more models are expected to follow.
AMAZON TESTING GM BRIGHTDROP VANS
General Motors is struggling to sell its BrightDrop electric vans but this could give it a boost. Amazon is testing a small fleet of 12 BrightDrop vans as part of its effort to reduce carbon emissions. But there’s more to it than that. Amazon can likely negotiate a good deal on the vans, since we saw GM had piles of inventory and it could be desperate to sell them. Amazon currently has 31,000 electric delivery vans in its fleet, mostly from Rivian. And it wants 100,000 by the end of the decade.
RAM CANCELS ELECTRIC PICKUP TRUCK
After several delays and a scaling back of the program, we wondered if Ram would cancel its full-size electric pickup truck. Well, that’s exactly what happened. The brand announced it will discontinue development of the model, which was supposed to be called the Ram 1500 REV, because of slow demand for full-size electric pickups in North America. Ram is still moving ahead with the version of the truck that uses a range extender, however it’s dropping the name Ramcharger and it will be called the 1500 REV instead. You may remember back in June that Ram also announced it’s bringing back the Hemi V8 and then Jeep revealed that it would get V8s too. The CEO of Ram said the brand “screwed up” when it dropped the Hemi and went solely with its turbocharged 6-cylinder engine, called Hurricane. Exhaust note was part of the problem. He said even customers of the RHO, which has its own special intake and exhaust tuning, told him that they want more attitude from the truck. So, Ram teamed up with MagnaFlow to offer a couple of performance exhaust systems for the RHO that provide better sound and flow. One is a bolt-up system that costs about $2,100 and the other is a customizable system that cost just under $3,100.
CHRYSLER SCALES BACK EV PLANS
Going back to Stellantis and cutting back on EV plans, this has been a bigger trend at the company under new CEO Antonio Filosa. Alfa Romeo and Maserati have both cancelled plans to go all-electric and Chris Feuell, the CEO of Chrysler, told us recently that it too was not going electric-only. She said a planned electric crossover will now have a multi-energy lineup, including some form of hybrid. It’s a D-size CUV made on the STLA Large platform, same as the Jeep Wagoneer S, and will come out in 2027.
WERIDE LAUNCHES ROBOBUS IN BELGIUM
WeRide is rolling into Belgium. The Chinese autonomous driving company just launched its Robobus or shuttle in the country, making Belgium its 11th global market and the fourth in Europe. Testing starts this month with a safety operator onboard, and if regulators give the green light, public service kicks off in November and runs through January 2026. That makes it the first commercial deployment of AVs in mixed traffic in Belgium. Passengers will be able to book a ride using an app or subscription. If the trial proves successful, the shuttles will move into regular service as part of the city’s public transport network, with the ultimate goal of going fully driverless.
TOYOTA E-PALETTE SHUTTLE ON SALE IN JAPAN
Toyota just kicked off sales of its e-Palette electric vehicle in Japan. The boxy BEV is designed as a multi-use mobility platform—serving as a shuttle, mobile store, or even an entertainment space. The model features a nearly 73-kWh battery that delivers 250-km or 155 miles of range. It features a roomy interior, large windows, low floor with wide sliding doors, and full wheelchair accessibility. The e-Palette supports Level 2 automated driving today but will be used for demos with partners as Toyota works toward a Level 4 launch in 2027. Other features include steer-by-wire and bi-directional charging, so it can be used as a power source in emergencies. Toyota will deploy the e-Palette first in Tokyo’s ARENA district and Woven City, where it will support transport and retail services.
AUTOLINE DRIVE MODES POLL RESULTS
Ok, it’s time to go over the results of our latest poll. Many vehicles feature different drive modes to change the driving dynamics of a car, like normal, eco and sport. And we wanted to know what your experience with drive modes are.
Only 16% said you love them and switch modes on a regular basis. 57% said you sometimes switch but mostly keep it in one mode. And the remaining 27% said you never switch and the option should be dumped.
Here’s some of the comments that we like. Naarealy likes the option and says “All the time, but only in cars where it makes a big difference in character or performance. Otherwise I just pick the most comfortable setting.”
Evan Bauer says “The traction modes are an important safety function when one needs to drive in bad conditions. Others, Sport and Eco for example, provide fun or a little extra range on the highway. Keep them even though most of us change them infrequently.”
Pinky McSunset says “I never switch, but my wife and I use different settings. It’s nice that it drives the way each of us prefer.”
AC Held had this to say “I like having the option, but the truth is I rarely change modes. Once I figured out the best combo for me in my Merc, I leave alone for the most part.”
And lastly wt9653 says “If dumping the features lower prices. Dump them ASAP!”
Thanks for your comments, we really enjoy all of your feedback.
But that’s it for today’s show, thanks for watching and have a great weekend.
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I drove through the local Dodge-Chrysler-Jeep-Ram dealership yesterday, and they have a huge inventory of about everything, except Pacifica. Sean, do you have days’ supply numbers handy? I would expect layoffs soon, if they aren’t already happening. Apparently Ram pickup buyers are much different from F-150 buyers, who have had no problem with buying turbo sixes, which make up 80-90% of F-150 sales. Ram buyers seem to like the sound of 6 cylinder diesels, but not gassers.
The Chinese auto industry is about 100 years behind the US industry, which went through “involution” during the 1920s and 1930s, going from more than 100 car companies to fewer than 10. One of the earliest US car companies was Haynes, in Kokomo, Indiana, which folded in 1924.
Drive modes, like paddles on automatic transmission cars, are cheap to do, so most vehicles seem to have them. I have a “custom” drive mode set up on my Prius, with “eco” throttle mapping and “sport” steering weight. I’d probably use it most of the time, but it reverts to “normal” with each start. I just leave it in “eco,” where it stays with restarts.
Most Teslas coming to Canada are now coming from the Berlin plant. Also seeing a lot of Brightdrops here probably do to a strong financial incentive to commercial applications from BC Hydro.
Having just bought a new Ram in July that has the hurricane engine. I didn’t think Ram screwed up. Yea it doesn’t have the nice sound the hemi had but it does have more hp and TQ. And better mileage. It’s actually super quiet to the point it could pass for an EV from the inside. Made a trip to Cleveland on the turnpike running around 75-80 and I got 22mpg. I really like this hurricane engine. My brother has a new Silverado with the 6.2L. We had to see which one was faster and hate to admit the Ram is quicker 0-60 and 1/4 mile than the GM with the big engine. And I don’t have the HO hurricane. That one is even quicker. I’ve also towed the boat with it and it has no problem. From behind the wheel there is very little that would let you know it’s a turbo 6 and not a hemi Now longevity I guess we’ll see.
The difference is that Ford never got rid of the V8 option. Their turbo 6 sales kept rising over a number of years, slowly displacing V8 sales. Their V8 now makes up about 10% of F-150 sales. Ram decided rashly to make a total transition in one model year. The Hurricane was an unproven engine when it became the only powertrain choice in Ram pickups. No surprise that buyers were wary. The buyers that keep their trucks for a long time also tend to be wary of turbo failures. Its an expensive repair that you don’t have to worry about with a V8.
Brightdrop vans are made in Canada, so that may be another reason you are seeing more on the road there. No tariff issues, and a more progressive view on emissions than we currently have here in the US. I am surprised GM is having an issue. When it launched, they said they had two years worth of orders on hand. They closed the plant for six months because they couldn’t produce enough batteries. When the plant reopened, all of the orders evaporated? Something seems to be missing from this story and it seems like GM doesn’t want all the facts to be known. There are really big incentives for this type of EV in a number of states, so demand should not be such an issue, especially when it is being sold through Chevy dealers in the US and Canada.
Will the new Chrysler crossover be called Aspen with a blue e? Only time will tell.
The UAW seems intent on guaranteeing that no OEM will want to build vehicles in the US. The current protectionist policies won’t last forever. When they inevitably evaporate, US production will plummet. The only question is if the UAW will have leadership at that point that grasps the situation and works with the OEMs to save the jobs or if they cling to their hard fought pay and benefits until all US assembly plants close. The main reason so many vehicles are assembled in Mexico now is the UAW. That transition will continue in the future, despite what the current administration tells you.
It seems that Ram’s big mistake was mis-reading their customer base. They kind of assumed that since the hurricane six works better than the “hemi,” why not switch over completely. I suspect many Ram buyers, though, even more than Chevy and Ford pickup buyers, are living in the past. All reports I’ve read come to the same conclusion as Lambo, that the six works very well. Now that they are again putting the “hemi” in the pickups, we’ll see if the take rate mirrors Ford’s over time, and most sales are the turbo six. I look forward to seeing it in the Charger. Maybe I should avoid test driving those when they show up. I might like it. Yeah, it’s too early to know how well the six will hold up.
GM Vet,
Another alternative is that it becomes cheaper to have a robot do the jobs. With AI, robots are fully capable to do anything a human could do now when it comes to vehicle assembly. They are just expensive. The increase in benefits may be enough incentive the need to implement AI equipped robots. The only question before the OEMs is to use a single arm with a fixed base or the cheaper bipeds that are in development and soon to be released worldwide.
I wonder how many sales the “Detroit Three” would lose if most of the UAW jobs went away. There are a lot of UAW people where I am in Indiana buying new Ram pickups and Grand Cherokees who wouldn’t be buying new vehicles if working for minimum wage.
MERKUR DRIVER —
The Union president is making it hard for the work force he represents! The OEMs are already dealing with the change of direction of the admin, the soften of the market they have recently, heavily invested in AND the potential threat of new, advanced competition coming from China! Hard line talk is only pushing OEMs deeper into a dark corner. While robots and other automation might seem the answer, how quickly can you program these tools, what happens when they break down and how much will THAT cost to ramp up?!
I am curious about the poll on ‘Drive Modes’. Where was this poll conducted? And how many responded? The results will have more impact if you state how many total people took the poll. The results and few comments that you listed in your daily video were good, but don’t mean much if less than 30 people took the poll.
Ram finally got a truck that was considered reliable (thanks ZF transmissions) and competitive (Hemi). Stellantis made the decision to wreck marketing that was working (poor decision) by eliminating the Hemi. Ford customers have spent lots of money replacing cam phasers on their 6 cyl. turbos. Ram customers smartly declined to be the Stellantis guinea pigs for the Hurricane 6. I am curious why the turbo 6 did not find its way into Alfa Romeos and Maseratis?
The ZF transmissions in Ram trucks are made in Chrysler/FCA/Stellantis factories in Kokomo, Indiana, under license. The design is great, used by Rolls-Royce and Bentley, and most BMW longitudinal engine applications. If you get a good one, they are great in the Chrysler products.
I suspect they want to use more “European” engines in Maserati and Alfa. Also, the Hurricane 6 might not fit in most of their cars. I hope that engine turns out to be reliable, because all indications are that it performs very well.
Markus- robots still can’t do anything a human can especially assembly of items that require a bit of finagling to get placed. Interior trim is the one that comes to mind most often. Yea robots are getting better with cameras and AI to allow them to pick up items in random bins and place in an ever changing position. However parts that twist turn and flex then snap into place it’s difficult to automate. Not saying they’ll never get there because changes in design specifically for manufacturing can resolve those issues. When a part is designed with the intention of a robot to assemble its requirements can be significantly different and some compromises might need to be made. But yea AI and camera technology has given robots a huge jump in capability allowing for them to be used in applications that were not capable 10 years ago. It really places the high paying manufacturing jobs in pearl. Maybe Fain sees that and is just trying to get the UAW the last squeeze before those jobs go belly up.