AD #4143 – Data Centers Use 10X Electricity of EVs; North American OEMs Cutting Overcapacity; Tariffs Not Helping U.S. Auto Industry

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

STELLANTIS SHUTDOWNS SPREAD TO 6 MORE PLANTS
The business outlook for Stellantis in Europe is really looking grim. Yesterday we reported that it was shutting down one of its assembly plants in France for a couple of weeks due to weak demand. And today it announced the shutdown is spreading to 6 other assembly plants in Italy, Germany, Spain and Poland. While new car sales in Europe are flat, Stellantis is down by more than 6%, at the same time Chinese automakers are making significant gains. And that means Stellantis has a growing problem of overcapacity.

NORTH AMERICAN OEMS CUTTING OVERCAPACITY
Speaking of overcapacity, it looks like automakers in North America are starting to get their act together. Auto analyst John Murphy, with Haig Partners, points out that overcapacity has come down significantly from a decade ago. As you can see in this chart, the blue and grey columns show capacity, while the red line shows capacity utilization. At the far right of the chart you can see that by 2027, North American automakers have capacity and utilization in balance. John Murphy says that getting rid of overcapacity will give automakers stronger pricing power, and we would point out it will also make them more profitable.

DATA CENTERS USE 10X ELECTRICITY OF EVS
Say, are electric cars hogging up all the electricity and going to make the grid collapse? Scott Case, the CEO of Recurrent Auto, says all U.S. EVs on the road today consume less than one percent of the country’s annual electricity. Compare that to data centers which use 4.5% of the nation’s electricity, and that’s forecast to grow to between 7 – 12% in the next 18 months. By the end of this year, he says data centers will use 10-times more energy than all the EVs on the road. But that’s not the public perception. Recurrent’s market research shows one out of three people believe EVs use more electricity than data centers.

NISSAN GIVES SENTRA A REFRESH
Nissan’s sedan lineup is shrinking in the U.S. The Maxima is already gone, the Versa goes away at the end of this year, production of the Altima ends at the end of next year and the company is undecided if it will have a next-gen version. That just leaves the Sentra, but since it’s one of Nissan’s best-selling models, it’s getting a major refresh. The 2026 model features all-new styling with a much more expressive front fascia. The interior also looks all-new with a standard 12.3 inch center screen and an available digital display for the driver of the same size. While it seems like the powertrain and platform layout is mostly unchanged, it’s still powered by a 2.0L 4-cylinder engine mated to a CVT transmission, Nissan did make 4-wheel disc brakes standard, added reinforcements to increase body rigidity, made the steering damper bigger and retuned the shocks. Look for the new Sentra to start hitting showrooms later this year.

MERCEDES DEEPENS TIES WITH CHINESE TECH COS
Mercedes-Benz is growing its ties with Chinese companies to improve its software capabilities. It plans to take a minority stake in an autonomous driving company that’s abbreviated CQT, which is backed by Chinese automaker Geely. There aren’t many other details but a deal could be announced as soon as this week. Mercedes is also expanding a partnership with ByteDance, which owns TikTok. The automaker is integrating its AI technologies into its products and business operations in China. The all-new CLA, which launches this fall, will be the first Mercedes model equipped with ByteDance’s AI.

MERCEDES REPLACES CTO
And speaking of Mercedes and technology, the automaker’s Chief Technology Officer, Markus Schafer, is retiring in December after more than 30 years with the company. Replacing Schafer is Jorg Burzer, who is currently Mercedes’ head of production, quality and supply chain.

FORD CONSOLIDATES SALES OPS IN CHINA
Ford is consolidating its sales and service network in China. The automaker announced it’s establishing a wholly-owned subsidiary that will be responsible for managing the marketing, sales and services for Ford passenger vehicles. Ford’s joint-venture with Changan used to operate its sales and service but the new subsidiary will give Ford direct control of its sales efforts in China.

    

CHINA WRITES RULES FOR DOOR HANDLES
China wants to crack down on retractable door handles because of all the failures and safety issues they create. So now the country’s Ministry of Industry and Information Technology has drafted a set of rules and is looking for feedback from the public. Those rules would include every outside handle providing enough space for someone’s hand, every door, except the trunk, featuring a mechanical release and outside doors opening without tools even when there’s no power. And then there’s similar rules for the inside doors and where the mechanical releases can be placed. China is taking the public’s feedback until the later part of November.

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TRUMP TARIFFS NOT HELPING U.S. AUTO INDUSTRY
Are President Trump’s tariffs helping the American auto industry grow? Not according to a report from the Detroit News. Automakers and parts suppliers are now forking out about $6 billion a month in tariffs. Before the President announced his liberation day, that number was $1 billion. At the same time, U.S. automotive exports are down, mainly because most of them went to Canada and Mexico, and those markets are turning their backs on American made cars and turning to Chinese ones instead. Analyst Warren Browne warns U.S. policy is essentially handing the Latin American market to Chinese automakers. So far, automakers in the U.S. have largely eaten the cost of the tariffs and not passed the cost on to customers. But Patrick Anderson, of the Anderson Economic Group, says that starting now the cost will become impossible for them to absorb.

And that’s a wrap for today’s show. Thanks for making Autoline a part of your day.