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Runtime: 10:17
0:00 Trump Admin Considers Tougher Auto Import Rules
1:05 Mercedes Debuts New Electric C-Class
2:22 Investors Warn Mercedes To Focus on Tech in China
3:07 Detroit Automakers Scramble to Re-Enter the Sedan Market
4:16 GM Breaks Camera Systems to Advance Level 3 Tech
5:18 High Fuel Prices Drive European EV Sales Surge
5:57 UK Electric Vehicles Now Cheaper Than Gas Cars
6:39 China Vehicle Exports Skyrocket 73% In March
7:03 BMW Uses AI to Optimize Battery Cell Production
7:27 Ford Uses AI to Colorize Vintage Mustang Concepts
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TRUMP ADMIN CONSIDERS TOUGHER AUTO IMPORT RULES
The Trump Administration has put tariffs on imported cars, steel, aluminum and copper, as well as imported components. But it looks like it’s still not satisfied. It’s considering changes to North American trade rules that would raise tariff auto imports even more. Bloomberg reports that officials have discussed requiring car imports to have a minimum amount of U.S. parts as well as limiting the ability of automakers to lower tariff rates under the USMCA trade deal, which would effectively raise costs to bring vehicles into the U.S. The considerations are at an early stage and no official proposal has been sent to representatives in Canada or Mexico. Under current USMCA rules, 75% of a vehicle’s content must come from the U.S., Canada or Mexico. And the three countries will decide by July 1 whether to extend the agreement.
MERCEDES DEBUTS NEW ELECTRIC C-CLASS
Mercedes-Benz is showing off its newest EV just days before the Beijing auto show opens. The all electric C-class is equipped with an 800v electric architecture and a 94-kWh hour battery, which Mercedes says can be charged in as little as 10 minutes. The car delivers 762 kilometers of range, based on the WLTP test, which we estimate would be about 435 miles on the EPA test. The C-class comes with rear wheel steering, which gives it a turning radius of 11.2 meters, which is about the same as a Honda Civic. It also has a heat pump which warms up the interior in half the time it takes for an ICE vehicle at -7 C, which is about 19 degrees Fahrenheit. The C-class also gets the Mercedes SDV architecture, called Mercedes Benz Operating System, which allows all software to be updated with OTAs. The interior features a pillar to pillar screen, and to dazzle people at night 1,050 illuminated dots are embedded in the grille. No word yet on price, but we should get that soon.
INVESTORS WARN MERCEDES TO FOCUS ON TECH IN CHINA
Sometimes shareholders have good ideas that management should listen to. Sometimes they don’t. Mercedes-Benz is facing a backlash from investors who say the company is focusing too much on luxury to claw its way back in China, instead of on mass market cars. They say Chinese customers want technology, not heritage. Here’s our Autoline Insight. Mercedes, as a brand, is all about prestige, luxury, exclusiveness and engineering. The best Chinese automakers have caught up to it in technology, and arguably in styling. We say, if Mercedes were ever to lose its brand image for prestige and luxury, then it’s all over for the company.
DETROIT AUTOMAKERS SCRAMBLE TO RE-ENTER THE SEDAN MARKET
Detroit’s automakers pretty much gave up on sedans years ago and put all their effort into pickups, crossovers and SUVs. Sedans have a lower profit margin than those other vehicles, and with UAW labor costs, which are significantly higher than those at the transplants, GM, Ford and Stellantis couldn’t make a profit selling cars. But that gave away 20% of the U.S. market, or more than 3 million cars, to the competition. And with Toyota catching up to GM in U.S. sales, with the Hyundai Group getting close to Ford, and with Honda outselling Stellantis, the D3 are scrambling to figure out how to get back into sedans. That’s going to take some very clever engineering with minimal investment cost. So what do you think? Can they do it, and if so, how?
GM BREAKS CAMERA SYSTEMS TO ADVANCE LEVEL 3 TECH
For now, both BMW and Mercedes are giving up on Level 3 driving, which is hands-off and eye-off in certain conditions, but still being ready to take over when needed. However, other automakers like GM are still moving forward to hit Level 3 capabilities and the company says it’s benefiting from intentionally breaking its own vehicles. GM invested in tools that allow engineers to introduce faults, like shorts or random errors, into its entire camera pipeline in a controlled manner, instead of waiting for them to happen naturally with in-vehicle testing. The company claims it can now stress-test its camera system with a level of precision that was impossible before and that it’s already changing how it validates, debugs, and scales camera features. GM says the investment will pay off with its next-gen Software Defined Vehicle platform, which is supposed to have Level 3 capabilities, first launching in the new Cadillac Escalade in 2028.
HIGH FUEL PRICES DRIVE EUROPEAN EV SALES SURGE
The jump in fuel prices caused by the war in Iran boosted EV sales in Europe in the first quarter. According to data from trade group E-Mobility Europe and research firm New Automotive, 560,000 BEVs were registered in Q1, up 30% from a year ago. Those registrations represent 15 European markets, which accounted for 94% of all BEV sales last year. And in March alone, BEV registrations were up over 50% to 240,000 units, or around 21% of the overall market.
UK ELECTRIC VEHICLES NOW CHEAPER THAN GAS CARS
And here’s another reason why EV sales are up in Europe. EVs are now cheaper than gas-powered cars in the UK. According to a report from the Guardian, the average EV listed on Autotrader is $1,000 less expensive than an ICE vehicle. There’s several reasons for the difference. Many automakers are offering big incentives on EVs in an effort to meet emission targets. The UK is now offering up to 3,750 pounds to buy an EV. And lastly, the UK doesn’t ban or place a specific tariff on Chinese made EVs, so there’s plenty of low-cost options for car buyers.
CHINA VEHICLE EXPORTS SKYROCKET 73% IN MARCH
And speaking of Chinese vehicles, exports out of China surged in March. According to the China Association of Automobile Manufacturers, vehicle exports reached 875,000 units, up 73% from a year ago. And in the first quarter, automakers shipped 2.2 million vehicles out of China, up 57% from last year.
BMW USES AI TO OPTIMIZE BATTERY CELL PRODUCTION
Here’s a couple of examples that help illustrate the broad spectrum of applications for AI in the auto industry. BMW is now using AI to help optimize its entire battery cell value chain, from electrode production to end-of-line testing and in-house direct recycling. The company says it expects to see savings in raw materials, costs and time.
FORD USES AI TO COLORIZE VINTAGE MUSTANG CONCEPTS
Meanwhile, at the other end of the spectrum, Ford is using AI to bring new life to old designs. It took the negatives of photos of Mustang concepts from the 1960s, which were in black and white, and asked AI to add color, only this time using shades that are available on the current Mustang lineup.
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I think GM can move back into sedan production using the already existing CT5 platform (I believe this is the same platform that the late Camaro had). I’ve also seen some news that Chevrolet is considering bringing back the Camaro (maybe even as a four-door), and Buick variants have also been presented as potential additions to the mid-sized sedan arena. As a CT5 owner myself, I can validate/attest that the ‘platform’ is solid and would do good stead with additional offering from other divisions of GM.
If the “Detroit Three” want to get back into the car business, they need to have competitive products. For mainstream products, they need hybrids that will, at least, come close to the efficiency of Camry. Something I’d like would be a CamCord size hybrid hatchback. I’d consider replacing both of my current cars with something like that, if done right.
I agree with you, Sean, about Mercedes. They need to concentrate on luxury, not gadgetry. For $50K base, a C-Class should be quieter, ride better, and have a more upscale interior than a Camry or Accord. Also, user friendly controls would be nice, but from what I see, a low $30K Camry or Accord is better in that regard, and is comparable to the Benz in quietness and ride. Then, in city driving, the Benz uses twice as much premium gas as the CamCord hybrids use regular. The C-Class is a little quicker, but not a lot.
As a retired mechanical engineering manager and car guy I no longer buy new cars but used
The new cars just don’t excite me to pay the high prices. All the technology does not impress me
Chuck, yep, Buicks and Chevys using the CT5 platform would be nice. They’d need to be pricier than CamCord, but, less expensive than the European competition. Yeah, the most recent Camaro was on the same platform as CT4 and CT5. A friend has one with the 3.6 N/A V6, and it drives very well.
If they make a 4 door Chevy, it should not be called a Camaro, at least to me. Camaros have been two door coupes and convertibles for about 60 years, and should stay that way. The could call the 4 door Chevelle, and performance versions Chevelle SS. They could make a wagon and call it Nomad.
Yeh, a wagon called Nomad might make a run out of it, also, instead of Camaro (I agree with you Kit), Chevrolet needs to bring back the Caprice.
GM should work with Hyundai to build a new assemble plant is the US the uses the Unboxed manufacturing process. Hyundai will run the plant, so no UAW interference. The sedan should be designed so that 90% or more of the assemble will be done by stationary/mobile robots used today and humanoid robots. The design should support both an ICE/Hybrid and EV models. GM and Hyundai will each get a version to sell with the only difference being the front/rear end and the interior appointments.
Caprice was the name for the top trim big Chevy for a lot of years. I’d forgotten, but they used the Caprice name for the Holden police cars sold in the U.S. for a few years. They were, basically, a stretched version of the Pontiac G8, but were sold in the U.S. only as police cars.
GMs smaller SUVs are already competitive. Why not graft a trunk on the back of them and make a tall sedan. It should be easy to do, be unique and roomy and have a profile similar to the 55-57 Chevrolet sedans. I’d buy one.
In talking about the UAW against the unbox/modular systems. The union historically goes after any executive that even remotely aims in that direction including Sandy Munro when he was at Ford, I believe there was a GM VP dismissed for trying to bring it in. Will the UAW allow GM to cooperate with Hyundai about modular construction? All the while Tesla is going gang busters about using that method with the Cybercab production and from early pictures and discussion on Tesla semi seems that Tesla is using a box/unbox method in making that vehicle.
IMHO, the issue(s) is not whether the Detroit Three can build a sedan, but making a compelling vehicle that customers will consider! There are too many things that the Detroit Three gave up on when they abandoned the market, that they will need to catch upon to be a success! To do that will be an up hill climb, with their own weight and baggage holding them back, as well as things that are difficult to foresee. There is the class of vehicle they want to compete in, the platform or architecture they will use, the engine and transmission supporting the vehicle, interior appoints and connectivity and finally the price of the vehicle. Toyota and Honda have owned the mass market subcompact, compact and midsize sedan market so long (then add Kia and Hyundai into the mix), breaking back into those segments would be like a bank robber trying to break into Fort Knox! If they get the platform right, if the engine and transmission isn’t competitive, they fail! If they get those two right, but the styling of the interior and exterior doesn’t win anyone over, they fail! If they get the architecture, engine and transmission, the design and styling together, as well as the connectivity right, but it’s too expensive, they fail! Then, even if they get all of the that together, but law makers pull the industry in a different direction, they still may have a lot of investment with nothing to show for it!
That said, Stellantis may have the best opportunity to turn things around, due to their recent investing in their STLA platforms, that they are using in different applications all over the world. Also, if GM and Ford wants to compete with Toyota, Honda and Kia/Hyundai in the US, they going to have to offer something that stands out as different and is a strong value for whatever segment they choose to challenge the leaders in. A compact/midsize sedan that is RWD/AWD and your choice of ICE, hybrid, PHEV and EV, that starts around $30-35K?! I think Stellantis already has a STLA platform that they can plug into that space, but the question is: will they. We’ll just have to wait and see how it all pans out!
I think that if the OEMs can build and price a competitive sedan, it will sell. They need to be realistic on pricing though as a price higher than Camry/Accord I think would not fly. The Japanese vehicles are just that good; boring but good.
With the heavy handcuffs of the unions it just may not be financially possible or worth doing. OEMs are caught between having to use overly expensive and rules bound unions and expensive independent dealers with their own goals.
Kevin A., your mention of ’55-’57 Chevy got me curious about how big those are. It turns out that they are very close to the size of a Current Accord. The ’55 Chevy is the same length, an inch wider, and 2-3 inches taller than a current Accord. The current Camry is an inch shorter and narrower than the Accord.
The ’57 Chevy is a little longer than a ’55, but is lower. It is only about 1.5 inches taller than a current Camry or Accord. An Equinox or similar is close to the height of early 1950s cars. A current Equinox is about an inch taller than a ’50 Chevy sedan.
I’m curious about how the ICE Charger drives. It’s base price of $50K, and its thirst, puts in a completely different market from Camry, Accord, and Sonata, but it might be a bargain compared to an E-Class or 5 series. CR has one in test. It will be interesting to see what they think about it.
I don’t think that the cost between Detroit Three is that much different then the transplant OEMs and here’s why. Every time the union shops get a raise, the non-union shops get a pay bump too. The only real difference is the healthcare cost, which, as i understand, are covered by the union. So where is the real cost advantages? While there are rules that the Detroit Three have to go by in the contract that both parties agreed to, that the transplants don’t, but that doesn’t seem to be that much of a difference to make it impossible to be competitive. Adding to that, the Detroit Three agreed to the contracts that are being claimed to be making them non competitive! So, if the contract is the problem, why did they agree to it?
I really like the way new C-Class EV looks! While I like both the i3 as well as, I think the has the lead and I’m a BMW fan! I even like the grill.
@wmb on C Class EV: I agree with you on styling. This looks like a nice vehicle. Just like the BMW EV sedans and SUV have been looking sharp for a product generation. Hopefully Mercedes continues on this path. The current EQS for example is very ugly in my opinion.
Wim van Acker —
The original EQS concept was, to me, incredible, but the road going version just did not live up to expecting of many. Yet, it seems that they have learned to balance the aerodynamics that they needed, with the classic look that Mercedes customers, fans and loyalists are more in line with.