AD #4255 – Tesla Buys $4.3B LG LFP Batteries; Buick Launches $70K Luxury EV Van; New Kia Telluride Hybrid First Drive

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

Happy Saint Patrick’s Day to everyone out there.

GAS PRICES JUMP AT THE PUMP, NOT GOOD FOR CAR SALES
The war in Iran is causing gasoline prices to jump at the pump. The AAA reports that regular gasoline in the U.S. is up 23% in the last month, now averaging $3.80 across the country. And that diesel prices are up 37%, hitting $5 a gallon. That’s really going to hurt trucking companies. In the UK, prices jumped to 140 pence per liter, or $6.70 a gallon, while diesel rose to 159 pence, or $7.58 a gallon. As we’ve been warning since the war broke out, a sudden price surge at the pump will skew the kind of new cars people buy. And this threatens sales of all those high-profit SUVs and pickup trucks.

JAPAN IMPORTS AMERICAN MADE TOYOTA TRUCKS
To earn export credits and to help ease the $64 billion trade deficit in goods and services that the U.S. has with Japan, Toyota, Honda and Nissan will start exporting American-made vehicles to Japan. Toyota will ship Camrys, Highlanders and Tundra pickups. Honda will ship Passports and Acura Integras, while Nissan will ship Muranos. The Japanese government recently eased import restrictions for U.S. made vehicles. But here’s our Autoline Insight, we don’t think this is going to last very long. These vehicles all have steering wheels on the left side, while most Japanese cars have them on the right. Once upon a time, decades ago, having a car with the steering wheel on the left was a status symbol in Japan, because it was obviously imported. But that only appealed to a very small group of status seekers. So that’s why we say, you watch. Whenever this trade pressure eases up, those exports will come to a screeching halt.

         

TESLA BUYS $4.3B LG LFP BATTERIES
LG Energy Solution is going to supply Tesla with $4.3 billion worth of LFP batteries for its energy storage business. Production of the battery cells is expected to start next year at LG’s plant in Lansing Michigan, which will require an additional line at the facility to fulfill the order. The batteries will be used to power Tesla’s Megapack 3 energy storage systems, which are made in Houston. The Lansing battery plant was originally a joint-venture between LG and General Motors but GM sold its stake last year to LG, as part of its decision to scale back its EV production.

VOLVO EX30 AXED FOR U.S. MARKET
Volvo had high hopes for its small electric SUV the EX30 but now the model is being axed in the U.S. Sales will be discontinued after the 2026 model year, however the EX30 will continue to be sold globally, including in Canada and Mexico. The model launched in the U.S. in 2023 and was meant to be the company’s volume EV, with a starting price initially targeted at $35,000. But more expensive, higher-end versions launched first and tariffs have pushed the starting price closer to $40,000. As a result, car buyers never really warmed up to the model and Volvo sold just 5,400 EX30’s last year in the U.S., which was only 4% of its overall sales.

    

UBER AND NVIDIA LAUNCH ROBOTAXI FLEET
Uber must see huge potential in robotaxi services because it’s been investing so heavily in the tech and it could soon become the biggest provider of driverless rides. NVIDIA announced it’s going to start supplying Uber with its end-to-end autonomous driving stack in the first half of next year. They’ll first deploy the system in Los Angeles and San Francisco and then plan to expand into 28 markets across four continents by the end of 2028. We know for sure one of those other markets will be Japan and will include the Leaf-based robotaxis we’ve talked about recently, which are part of a partnership with Nissan and AV company Wayve. But on top of that Uber will also work on robotaxis with other tech companies, including Nuro, Waymo, WeRide and Zoox. And it has partnerships with automakers like the Hyundai Group, Lucid and Volkswagen.

RENAULT TO DEPLOY 350 HUMANOID ROBOTS
Tesla, Hyundai, Mercedes, Toyota and BMW have announced plans or already have pilot programs testing out humanoid robots in their plants and now Renault is joining the list. The French automaker will deploy 350 humanoids at its plants starting next year. The robots were developed with French startup Wandercraft, which Renault holds a minority stake in. Called Calvin-40, they can carry up to 40-kg or 90-pounds and perform repetitive tasks, like lifting tires and carrying panels in the body shop. They can also be trained to pick out parts from bins but that’s still limited because of a lack of speed and dexterity. Renault says the robots are part of its effort to reduce production hours per vehicle by 30%.

BUICK LAUNCHES $70,000 LUXURY EV VAN
Buick is expanding its luxury van lineup in China with the all-electric ENCASA. It launched the plug-in hybrid version at the end of last year, but now the EV is hitting the market with a price tag of roughly $70,000, which is about $7,000 more than the PHEV. A good chunk of that extra cost is likely tied up in the 96 kWh battery pack, which we estimate would return about 250 miles or 400 kilometers of range on the EPA test cycle. Thanks to a 900-volt system, the ENCASA EV can also charge significantly faster than the plug-in hybrid; capable of going from 10-80% in under 12 minutes. But we think the real highlight of this van is the interior with large display screens for front passengers and big, comfy, reclining seats in the second row. NEVs, like PHEVs and EVs, make up more than 50% of the van segment in China and Buick claims it’s the #1 van seller in China.

NEW KIA TELLURIDE HYBRID FIRST DRIVE
You’re going to start seeing a lot of stories about the new Kia Telluride SUV today because the media embargo just lifted. Here’s our quick impressions. This vehicle is impressively quiet and Kia went to great lengths to make it so. The engine compartment is almost completely sealed off, the doors have triple seals, and the windshield and side glass for the first and second rows have acoustic glass. At steady cruising speeds we think it’s nearly as quiet as an EV. The hybrid version is rated at 36 miles per gallon or 6.5 liters per 100 kilometers, which is quite impressive for a vehicle this size. The X-Pro trim line is capable of doing some off-roading. And while it’s not going to keep up with the likes of a Jeep Wrangler or Ford Bronco, it will get you through some surprisingly rough terrain. One feature of the Telluride that we’ve never heard about on any other vehicle, is that Kia uses the two electric motors in the hybrid system to mitigate the pitch of the vehicle during acceleration. By cutting torque in relation to pitch, Kia says it can reduce car sickness. If you’d like more info about the Telluride, we’ll be posting an article on the Autoline website that contains a ton of information.

But that’s a wrap for today’s show. Thanks for tuning in.