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Runtime: 8:42
0:00 Stella’s Filosa Wants EU Regulatory Relief
0:56 Audi Updates V6 Diesel
2:02 VW AG Looks at Regional Manufacturing Structure
2:55 Most Robotaxis Carry 2 People
3:54 China Expects 7 Million Exports In 2025
4:18 BYD Hits 3-Month Sales Slump
4:51 Investors Worry About China EV OEMs
5:20 EU Moves Supply Chains Out of China
5:54 VinFast May Add EREVs & Hybrids
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
STELLA’S FILOSA WANTS EU REGULATORY RELIEF
There’s a battle brewing in Europe between environmentalists and the automotive industry. And it’s mainly about the EU’s plan to ban new ICE vehicles in 2035. Last week, Germany’s Chancellor urged the EU to allow exemptions for plug-in hybrid, extended range electrics and “highly efficient” combustion powered cars. And now Stellantis CEO Antonio Filosa is essentially saying the same thing. He says it’s necessary to “return the European auto industry to growth.” The EU will unveil a set of proposals later this month to support the auto industry, including a review of its emission targets.
AUDI UPDATES V6 DIESEL
It looks like Audi is already expecting some sort of regulatory relief. It’s making updates to its 3.0L V6 diesel that goes in models like the A6 and Q5. It now combines a belt-driven starter/generator, electric compressor and LFP battery. The 48-volt system for the starter/generator also powers the electric compressor, which is located behind the turbocharger and the intercooler in the intake path. If the system detects that the accelerator pedal has been mashed down, but the turbo hasn’t had time to spool up, the intake air will be directed to the electric compressor, where it will be compressed again before entering the engine. Audi claims this “overcomes turbo lag” and also “significantly lower fuel consumption compared to the previous engine generation.” When combined with all its new tech, the updated 3.0L V6 diesel makes 220 kW or about 295 horsepower and nearly 430 lb-ft of torque.
VW AG LOOKS AT REGIONAL MANUFACTURING STRUCTURE
The Volkswagen Group is making an interesting change to its manufacturing footprint in Europe, that we’ll really have to keep an eye on. All of the company’s plants in Spain and Portugal will report to one manufacturing executive who will oversee all planning, production, logistics, and launches. VW AG says the move is to give the region greater autonomy and flexibility to boost efficiency and competitiveness. The goal is to have leaner operations, faster launches, and long-term gains in manufacturing competitiveness. The company makes Volkswagen, Seat and Cupra models in Spain and Portugal and is building a gigafactory for EV batteries in Spain. Here’s our Autoline Insight. If VW thinks this works well in the Iberian Peninsula, then it will probably want to change to a regional management structure across the world.
MOST ROBOTAXI’S CARRY 2 PEOPLE
Tesla’s Cybercab received a lot of criticism for being impractical because it only seats two people. But it turns out, Tesla could have the right approach. According to data that Waymo provided to the California Public Utilities Commission, 90% of its trips have two or less people, and 75% have 1 or less. Just 6% of rides have three passengers and only 3% have four passengers. So if the Cybercab is able to launch without a steering wheel and pedals, it looks like Tesla will be able to cover most trips. But its bigger hurdle will likely be getting approval to roll out the service.
CHINA EXPECTS 7 MILLION EXPORTS IN 2025
China’s auto industry is in a strange position. From one angle, it looks unstoppable. From another, it looks increasingly fragile. Here’s what I mean. According to the China Association of Automobile Manufacturers, exports hit 7 million vehicles. That’s a million more than last year, and double the number from three years ago. Chinese automakers are taking the global market by storm.
BYD HITS 3-MONTH SALES SLUMP
And yet, BYD, the largest automaker in China, is now into a 3-month sales slump, despite strong exports. Sales fell more than 5% in November and profits plummeted 33% in the last quarter. BYD enjoyed explosive growth over the last few years as it launched a slew of new models into the Chinese market. But that market is looking increasingly oversaturated and BYD may have over-extended its product line.
INVESTORS WORRY ABOUT CHINA EV OEMs
All this has investors worried about what’s going to happen next year if the Chinese market softens. Chinese EV stocks started trending downwards two months ago, and really started to fall a couple of weeks ago. Though NEV sales are still growing, they’re now growing at half the rate they were at the beginning of the year. Only a handful of Chinese automakers are profitable, but at the rate they’re going they could be headed for a situation where none of them are making money.
EU MOVES SUPPLY CHAINS OUT OF CHINA
General Motors and Tesla have recently told their North American suppliers it doesn’t want them sourcing anything for their US-made vehicles from China to make sure their supply chain isn’t disrupted by geo-political problems. And now companies in Europe are doing the same. According to the EU Chamber of Commerce, a third of member companies are looking to move supply chains away from China because of China tightening control on exports. And another 40% of companies say China is processing export licenses more slowly than promised.
VINFAST MAY ADD EREVs & HYBRIDS
EV startup VinFast has been able to increase sales to a little over 110,000 vehicles through the first 9 months of the year, but it’s spending a lot of money to expand. So, here’s one way it might try to increase its appeal. Reports say VinFast is considering shifting away from only electric vehicles and adding range extenders or maybe even hybrids to its lineup. Sources say one plan under consideration is to use a small internal combustion engine that would help charge the battery to provide more range, but wouldn’t provide any power to the wheels. While nothing is final yet, we think this would be the perfect application for Horse Powertrain.
And that wraps up today’s report.
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Welcome back! As crazy as it sounds, that last Vinfast you showed (a VF3) reminds me of an old BMW 2002. Check them out side by side before you scoff. Maybe like the illegitimate love child between a 2002 and a Kia Soul.
I agree with Stellantis! It’s fine to push OEMs to improve emissions, but if they go out of business in the end, everyone loses! Also, it appears more and more likely that each country (at least the larger ones) will be moving to an ‘all vehicles made in the country they are sold in’ model. Why let the EU auto industry die only to have to rebuild it from scratch!
Also, Sean, please tell us all how many vehicles and which models are actually exported from the US to countries other than Canada and Mexico. I can’t believe that there are many models or high volume. Mexico exports a lot, but the US? I don’t think so.
BMW is the biggest exporter of vehicles from the US, and according to ChatGPT, they exported ~165,000 vehicles from the US to the EU in 2024. Google says BMW exports $10B a year in value from the US to the EU. If 165,000 units is correct, and $10B is correct, the average value of the vehicles would be ~$60,600. Spartanburg is the primary source of X5, X7, and maybe other BMW SUVs for global markets. I suppose they may change that, depending on what happens with the trade war, but for now, most of the larger BMW SUVs come from the US.
Thanks for the information Kit. I agree that foreign companies do a good job building cars in the US and exporting them outside of North America. What I actually meant was US companies (Ford, GM, TESLA) exporting US made vehicles outside of North America. Ford claims large exports, but are mainly to Canada and Mexico. There other exports are mainly to China, South Korea (likely small numbers) and Puerto Rico (which is also part of the US) Online searches suggested GM exported 20000 SUVs but says exports are not reported in a way that answers my question. TESLA apparently no longer export from the US to outside of North America. My point is, given almost no US exports outside of North America, why does US allow any imports to US from outside North America? Also, why does the US export lots of cars to Canada and Mexico but complains about cars imported from those places?
Yeah, Ford and GM would export only a handful of vehicles from the US other than to Canada and Mexico. Ford exports a few Mustangs, and I’ve heard that Suburbans et. al. are sold in the middle east.
As far as US imports from outside of North America, European and Asian car companies make vehicles for global markets, including North America, but almost no one outside of North America wants what the GM, Ford, and Stellantis build in the US. Huge pickup trucks and SUVs have uniquely North American appeal, except in very small numbers.
To me, Trump is out of his mind wanting a trade war with Canada and Mexico. Cars and parts had crossed those borders fairly freely for 100 years, and for the most part, that seems to have worked pretty well for everyone.
Kit —
To your point, individuals outside of the US do not seem to want most of vehicles from Ford, GM and Stellantis built here in the US. However, most of BMWs X vehicles and Mercedes GLE and GLS vehicles ARE built in the States and then shipped around the world. Yet, the trade imbalance that the Detroit Three seem to have heart burn over, are that with Japan and China and selling their vehicles there. Ford seems to be okay with not exporting much to the EU, since they have plants there that service that market. That said, maybe it was a good thing that foreign OEMs have reduced their footprint or abandoned efforts in China?! If their homegrown automakers are fighting for scraps and still not making any money, it may be better to let that market have it reckoning, rethink their strategy and go back at it once things have settled down?
The auto business in China is like it was in the US 100 years ago, hundreds of car companies, only a few of which would exist in 15 years.
@Vehicle exports from the U.S. The BMW and Mercedes SUVs, which are mostly made in the U.S. are in demand because of their design, brand image, perceived quality and dealer network established overseas.
TESLAs would be a product in demand overseas which could be exported from the U.S., but TESLA has decided to build up half of its global vehicle assembly capacity outside of the U.S.
If any Tesla S, X, and Cybertruck are sold outside of the US, they would come from the US, but the volume 3 and Y are from Shanghai and Berlin for non-US markets.