AD #4303 – Ford Becoming a Holding Company?; Oil Changes Could Get Expensive; Mitsubishi Shrinking in the U.S.

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

FORD BECOMING A HOLDING COMPANY?
They call it the Ford Motor Company, but is there more than motors in the company’s future? Consider the following. Last week, Ford made a big splash announcing a new subsidiary called Ford Energy. Ford is pivoting its EV battery plants to make batteries for energy storage for utilities and other businesses. In January, Ford created an industrial bank, called Ford Credit Bank that is headquartered in Salt Lake City. It will offer savings accounts and time deposits in addition to car loans and leases. General Motors and Stellantis are also creating industrial banks. And this has got some insiders in Detroit thinking that, over the next decade, Ford is going to evolve into a holding company: one that owns an energy company, a banking company, and of course, a car company. Ford, as a car company, trades at less than half the price-to-earnings average of the companies on the New York Stock Exchange. Maybe, as a holding company, it could trade at a lot more?

LITHIUM EXTRACTED FROM THE GREAT SALT LAKE
Remember when there were warnings that there wasn’t enough lithium in the world to make EV batteries? Well, you don’t hear that any more. Now, Reuters reports that a company called Compass Minerals along with a startup called EnergyX are going to mine lithium from the Great Salt Lake in Utah. But they say don’t worry all you Bonneville Salt Flat speed freaks. They’re going to use DLE or direct lithium extraction technology, which uses a closed loop system that returns the water to the lake. Up to now, lithium mining in the Great Salt Lake involved pumping brine into evaporation pools to get the lithium. That lowered the water table, left toxic dust storms in its wake, and was shrivelling up the Bonneville Salt Flats. By the way, there are an estimated 2.4 million metric tons of lithium in the Great Salt Lake, which would be enough to make batteries for over 300 million EVs.

OIL CHANGES COULD GET EXPENSIVE
If your car is due for an oil change you may want to do it now before the price goes up. Even though the US is the biggest oil producer in the world, it turns out the base oil that’s refined into synthetic oil for car engines mostly comes from the Middle East. According to the Independent Lubricants Manufacturers Association, 44% of the synthetic engine oil that’s used in the US comes through the straits of Hormuz. And the biggest refinery for synthetic oil in Qatar, which is operated by Shell, was partly damaged by an Iranian ballistic missile attack. A big spike in engine oil won’t only hurt motorists, it will hurt fleet operators and car dealers who offer pre-paid and lifetime maintenance programs. So while there’s been a lot of attention on the price of a barrel of oil, and the price of a gallon of gasoline and diesel, next on the list will be the price of an oil change.

           

MITSUBISHI SHRINKING IN THE U.S.
Mitsubishi has been on a steady decline in the U.S. over the last few decades. The brand’s sales peaked at nearly 346,000 vehicles in 2002. But last year, its sales tumbled to about 95,000 vehicles, a 14% drop from 2024. As a result, Mitsubishi’s U.S. dealer network is also shrinking. The automaker now has 297 dealerships, which is 56 fewer or 16% lower than in early 2019. And the company’s CEO of North America says the network could shrink more before it grows. Dealers are upset with the brand’s aging lineup, with some voluntarily giving up their franchise because the models aren’t competitive. Dealers are also frustrated by the brand’s heavy reliance on fleet sales, which accounted for 60% of sales in the first quarter. The company has promised new products to roll-out by the end of the decade, but dealers are skeptical it will deliver them on time.

BMW UNLOCKS BIDIRECTIONAL CHARGING
BMW’s Neue Klasse architecture is unlocking bidirectional capabilities for its customers. In March it launched a Vehicle-to-Grid solution in Germany that allows iX3 owners to earn up to 720 euros a year by giving energy providers access to their vehicle’s battery. Now it’s partnering with a company called SOLARWATT to launch a Vehicle-to-Home function, also in Germany, that will allow both iX3 and i3 owners to integrate their vehicle’s battery with their other home energy solutions, like solar and stationary storage. So, owners will be able to tap into any of those sources to help power their home.

BMW REVEALS SLEEK ALPINA GRAND TOURER
At the beginning of the year BMW made Alpina an exclusive standalone brand within the Group. The company known for making suped up BMWs with nicer materials and a few unique touches will now sit above BMW, but below Rolls-Royce. Its first model will launch next year, a vehicle inspired by the BMW 7 Series, but said to be unmistakably ALPINA. We’re likely getting a little flavor of what that will look like with the Vision BMW ALPINA concept. The two-door grand tourer is 5.2 meters or just over 17-feet long, it features a specially tuned V8 under the hood and a variation of ALPINA’s classic spoked wheels. But under the skin is all BMW. For example, the interior electronics are powered by BMW’s latest version of its iDrive system.

POLL RESULTS
Let’s go over the results of our latest poll. With U.S. lawmakers and automakers wanting to ban Chinese cars from the American market, we asked what you think U.S. policy should be? 21% said to keep Chinese automakers out. 16% said keep them out for now but start opening the door in five years. And 63% said to let them in now. Here’s some of your feedback.

There was a lot of suggestions similar to usa1mac who says “Let them in, but require them to “partner” with GM or Ford or Tesla and force them to give half their profits to them. It worked for China’s marketplace for decades and would be fair to do here.”

BrennanHarvath says “Gotta get our house in order to compete so a delay of 5 years should help.”

Irvin Wright commented “This is a tough one. Capitalism is all about free markets and competition, so that the best rise to the top. If they can meet all of the safety standards and they are not being subsidized by their government then they should be allowed to compete.”

But a lot of you also had concerns like piwright who wrote “I don’t trust them to keep software and devices the CCP can use to spy out of imported cars and electronics.”

Thanks for participating and for your feedback, it’s interesting to see all your opinions. And don’t forget that Chery says all Chinese automakers want to get into the U.S. market.

Before we go, Autoline will be off for the Memorial Day holiday on Monday, so we’ll see you back here again on Tuesday. But that brings us to the end of today’s show. Thanks for making Autoline a part of your day and I hope that you have a great weekend.