AD #4249 – Geely To Power Next-Gen Mercedes Compacts; Switching to EV Fleets Cuts Costs 50%; Chery Debuts First Mass Produced Brake-By-Wire

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

GAS PRICE SPIKES COULD FORCE AUTO INDUSTRY SHIFTS
Just a few weeks ago the price of a barrel of oil was about $65, but due to the ongoing war in Iran that shot up to nearly $120 a barrel this morning. It has since come back down, but still sits well above $100. As a result, the national average for gas in the U.S. has gone up about $0.50 at the pump. And when gas prices go up quick, car buyers turn to more fuel-efficient vehicles. However, President Trump says the spike in oil prices will be short term. But let’s hope he’s right because if that doesn’t happen it could have a big impact on the auto industry. With federal EV credits gone and emission targets eased, automakers already planned to make more full-size trucks and SUVs, but if gas prices stay high, consumers will be buying fewer of those models. That could force companies to adjust their production plans, which would have a ripple effect across the entire industry and we could see some automakers, especially the ones that were relying more heavily on those big trucks and SUVs, like Ford, GM and Stellantis, to change their guidance for the year. 

U.S. ALUMINUM BUYERS SCRAMBLE AMID IRAN WAR
And as we’ve reported, the war is also causing the price of aluminum to rise since the Middle East is an important source of the metal. Bahrain and Qatar, two top producers in the region, have stopped shipments to customers. The U.S. relies heavily on the Middle East for aluminum, which supplied nearly a fifth of imports last year. As a result, Bloomberg reports that aluminum buyers in the U.S. are now scrambling to find new sources. Other potential sources include South Korea, Brazil, Indonesia, Iceland and Norway. Canada is also another important source, it accounts for nearly half of aluminum imports to the U.S. But shipments from Canada have declined under Trump’s tariffs.

      

SWITCHING TO EV FLEETS CUTS COSTS 50%
Businesses have the potential for big savings by switching to an all-electric fleet. That’s according to a new study from EY and Eurelectric, a trade association for Europe’s electricity industry. They looked at the European market where corporate fleets account for 60% of all new car sales. The study found that switching from gas to electric could cut total vehicle operating costs by up to 50%. And it says that switching from diesel to electric vans can lead to cost savings between 15% and 40%. The study also found that electrifying fleets in Europe could save a combined $286 billion through 2030 and the savings could be higher if higher prices and lower residual values are reduced further.

AUTOMAKERS REPURPOSE BATTERY PLANTS FOR ENERGY GRID
Due to weaker than expected EV sales, automakers are looking to repurpose underutilized battery plants. Last December, Ford announced plans to start a new business to make batteries for energy storage at its EV battery plants, which public utilities and data centers need. And now Volkswagen just kicked off operations at its first energy storage facility in Germany. The site connects directly to the grid and will also be used for energy trading on the European power exchange. It can supply power to as many as 20,000 homes for about two hours.

MERCEDES-BENZ REACHES DEAL OVER UAW UNION DISPUTE
Mercedes-Benz reached a settlement with the National Labor Relations Board to not make anti-union threats, which comes as part of a deal to resolve a case over the company’s response to the UAW’s organization efforts. Two years ago, workers at Mercedes’ plant in Alabama voted against joining the union. But the UAW alleged the company illegally interfered with the vote, including retaliating against employees, which prevented a fair election. Now, Mercedes has settled the case and agreed to distribute, and adhere to, a notice about employees’ union organizing rights. It also agreed to revoke discipline it had issued to one employee and not to threaten employees with loss of benefits if they unionize. Mercedes said it didn’t admit wrongdoing as part of the settlement. The UAW also has a separate petition with the NLRB to overturn the 2024 election result but that case is still pending.

  

GEELY TO POWER NEXT-GEN MERCEDES COMPACTS
Speaking of Mercedes-Benz, according to a report in CarNewsChina for the first time in its history, Germany will no longer serve as the headquarters for the automaker’s compact vehicle development. Mercedes is said to be negotiating a deal to use Geely’s vehicle electronics and electrical architecture for its next-gen compacts, like the A-Class, B-Class, GLA, GLB and CLA. The new platform could support multiple powertrain types and is expected to enter production for global markets around 2030. And while compact vehicle development will now be done in China, development of Mercedes’ mid-size and large vehicles will continue to be done in Germany. 

CHERY DEBUTS FIRST MASS PRODUCED BRAKE-BY-WIRE
Sticking in China for a moment, Exeed, which is a brand under Chery, has kicked off production of the first mass-produced model with an electro-mechanical braking system. The EX7 crossover doesn’t feature any hydraulic brake lines, just wires that send signals to the mechanical brakes at each wheel. Chery said it took three years to fully develop the system and get the interaction between brake pedal and brakes just right. 

EXEED RAISES PRICES AMID RISING CHIP COSTS
Exeed also raised the price of the ET5 crossover. One trim line is going up by about $725, which gives it a starting price of roughly $22,500. Exeed says the price hike was related to rising chip costs, but also part of its long-term strategy. Could efforts by the Chinese government to curb its price war be starting to pay off? We’ll have to see if more automakers keep raising prices.

FORD GIFTS CUSTOM EXPLORER TO POPE LEO XIV
American Pope. American Pope-mobile. Ford gifted a one-of-a-kind Explorer to Pope Leo XIV, which is expected to be used around the roads of the Vatican. Also, fittingly Pope Leo was born in Chicago and so is the Explorer at Ford’s assembly plant in the city. 

And that brings us to the end of today’s show. Thanks for making Autoline a part of your day.