AD #4176 – Toyota Redesigns Hilux, Offers Diesel, BEV, Fuel Cell; CSP Composite Could Cut ‘Vette Body By 50 Lbs.; Tesla Loses Cybertruck Chief

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

CHINA CAR SALES DROP…
China is starting to phase out subsidies for used-car trade-ins and that caused new car sales to drop. They didn’t drop by much, less than 1%, but when the subsidies go away completely by the end of the year, we could see sales fall even more. Ten million Chinese consumers applied for the subsidies this year, which helps explain why new car sales are up more than 8% for the first ten months of the year. But that means the subsidies pulled a lot of sales forward, and there’s always a payback once the market comes off that sugar high. 

…BUT EXPORTS UP 28%
When you pair that with the NEV purchase tax waiver getting cut in half, which we reported last week, all this means that China’s car market will likely suffer a major hangover as the subsidies are phased out. But, for now, automakers have been making up for most of that with exports, which shot up 28% last month to about 568,000 cars.

  

TESLA DOWN SHARPLY IN CHINA
For Tesla in China, October was a terrible month. Its sales dropped almost 10%, to less than 61,500 units. Despite adding a 6-seat version of the Y, as well as a $40,000 rear-drive version with over 500 miles of CLTC range, Tesla is not keeping pace with the wave of new models coming from Chinese automakers.

TESLA LOSES CYBERTRUCK CHIEF
That’s not the only bad news for Tesla. Siddhant Awasthi, the head of the Cybertruck and Model 3 programs revealed that he’s leaving the company after 8 years. He led the Cybertruck program from its engineering phase to large-scale production. And last year, he became head of the Model 3 program. But this feels like a growing trend at Tesla. At least 10 high-level leaders and executives have left the company this year alone.

CHIP SHORTAGE OVER–FOR NOW
Looks like the new chip shortage caused by fighting at semiconductor maker Nexperia could be coming to an end. That fighting saw China respond by curbing exports of some Nexperia components, but now the country is granting exemptions on chips for civilian use. No word what ‘civilian use’ means, but both German and Japanese companies announced deliveries of Nexperia chips have restarted. That’s good news because several automakers had already warned that the chip shortage would start to impact their bottom lines.

 

43 WEEKS OF WAGES TO BUY NEW CAR IN GERMANY
The European car market is stagnant and it’s got to do with affordability. According to Bloomberg, a new car now costs about 43 weeks of wages for the average German, up from 32 weeks in 1995. Used car prices are nearly 90% higher than a decade ago, and cost about 20 weeks of wages compared to about 15 in 1995. Europe is trying to tackle the affordability issue. Next month the EU is expected to reveal plans to create a new, small car category, that won’t require the same technology and safety equipment as larger cars. The goal is to create a market of affordable vehicles that cost between €15,000-€20,000.

TOYOTA REDESIGNS HILUX, OFFERS DIESEL, BEV, FUEL CELL
Toyota revealed the newest version of the most important pickup truck in its lineup. The new Hilux made its debut in Thailand and the company announced that it will be offered with three different powertrains; diesel, pure electric and fuel cell. As of right now it’s only offering details on the BEV version. It features a nearly 60 kWh battery pack, which it claims delivers 300 or more kilometers of range, but that’s based on the very outdated NEDC test cycle. Real-world numbers will probably be closer to 200 kilometers or about 125 miles of range. 4-wheel drive is also standard thanks to front and rear e-axles, which combine to produce 144 kW or about 190 horsepower. The new Hilux is scheduled to start launching around the world in the middle of next year. 

CSP COMPOSITE COULD CUT ‘VETTE BODY BY 50 LBS
CSP Advanced Materials, which is one of our sponsors, has come up with a new kind of plastic that could cut the body weight of a C8 Corvette by 24 kilograms or about 50 pounds. They call it TCA Float and it’s 23% lighter than the current composite used on the ‘Vette, which is also made by CSP. TCA Float has a specific gravity density of less than 1. It’s so light that it can actually float on water. And it can be used with existing tooling and manufacturing processes. No word yet on what the first application might be, but CSP says it’s perfect for anything that’s weight sensitive, like removable roof panels.

REMEMBERING RENAULT’S SCHWEITZER 
Louis Schweitzer, the former CEO and Chairman of Renault died at age 83. He really made a mark on the auto industry from 1995 to 2005. Schweitzer was the one who created the Renault-Nissan Alliance. He was the one who got Renault to buy Dacia in Romania and Samsung Motors in South Korea. And he saw the launch of the iconic Twingo and Megane. And so Autoline salutes Louis Schweitzer for his contribution to the auto industry. 

AUTOLINE POLL ON CHEVY SEDAN
Ok, let’s go over the results of our latest poll. Last week, we reported that Chevy is developing a new passenger car based on the same platform as the next-gen Cadillac CT5. We think there’s a good chance it could be a new sedan and we asked if you think it’s a good idea for Chevy to revive its sedan lineup. And the majority, 62%, said yes, Chevy shouldn’t have got rid of them in the first place. Another 11% said yes but only for overseas markets. 16% said no, Chevy shouldn’t bring sedans back. And the remainder said none of the above. And as usual we got a lot of great feedback.
 
James Short is in favor of Chevy bringing back sedans. “I think that it is a good idea for Chevy to be in the game with something other than an SUV, Crossover or a pickup truck. I would be all for something like my Audi A5 – four door hatchback – with an electrified powertrain – and maybe even revive the Impala nameplate.”
 
Keith Dunlap would also like to see a new Chevy sedan. “I loved the Cruze size and platform and owned several of them. I was sad for it to go away. I ended up going with a Trax since GM had already indicated the Malibu was in its last generation. I would consider going back to a sedan if GM offered a new one that was not too big or expensive.”
 
But not everyone thinks Chevy should get back into the game. Randy Lamp says “The Boomer in me fondly recalls Impala, Chevelle and Nova, but today’s US sedan volume market is dominated by Toyota and Honda. Going upscale brings competition not only with these firms’ luxury brands, but GM’s Cadillac division as well. European markets are already under pressure from Chinese firms. Not a lot of room on the table.”
 
And lastly dajellis had this to say “I have no particular emotion about GM developing yet another derivative sedan, based on an attempt to fill a perceived marketing category. I wish they would put all their efforts in making great cars with great technology – focus on better products, not filling marketing brackets. I have no hope in GM’s long term survival. Legacy auto is doomed.”

Well that would be a crazy series of events to see GM’s demise. And I hope it doesn’t come true. But thanks to everyone who participated, we really enjoy your feedback.

And that wraps up today’s show, thanks for watching and have a great day.