AD #4315 – Mexico’s Home Grown $8,600 EV; Magna Could Make Chinese Cars in North America; Ford Says Right Incentives Boost PHEV Charging

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

GM DIVES INTO ENERGY STORAGE…
General Motors and Ford watch each other like hawks. And when one makes a move, the other usually counters. So when Ford announced it was pivoting most of its EV battery plants to make storage systems for utilities and data centers, we wondered if GM would follow suit. Well, it finally did. In addition to LFP, GM says it will make sodium-ion batteries, since it can re-use most of the equipment that’s needed to make lithium cells. Ford’s stock shot up over 19% when it announced it was getting into energy storage. GM’s announcement yesterday didn’t move the needle on its stock price, but maybe it came out too late in the day for the market to digest the news. So we’ll be keeping an eye on how it does today. 

…AND BI-DIRECTIONAL CHARGING
Meanwhile, GM is really pushing the idea of bi-directional charging. It already has 250,000 EVs on the road in the U.S. with that capability, and says that if all EVs could be connected to the grid when they’re not being used, it could off-set the need to build more generating plants. But GM says there needs to be standardized communication protocols and that all stakeholders need to be involved since none of them can do it alone. Wade Sheffer, the vice president of GM Energy, says we need to start looking at parking lots and driveways as a massive, spread out power asset. 

           

FORD SAYS RIGHT INCENTIVES BOOST PHEV CHARGING
Ford says just a one percent drop in people buying new cars can completely stall CO2 reductions, erasing an amount equal to two million combustion-engine vehicles. But Jim Baumbick, the company’s President of Europe, thinks the region’s all-or-nothing approach to get people to go electric will make them keep their old cars longer. That’s why he says buyers need choice, putting an emphasis on plug-in hybrids, and encourages countries to offer incentives for driving on electricity. For example, in Sweden, an employer can reimburse an employee tax-free for charging a hybrid at home, resulting in PHEV owners driving on electricity 70% of the time. That number drops to 10% in a place like the U.K., which has no such incentives. And since charging at home is cheaper, Ford says running costs can go from 23 euros per 160 kilometers for diesel, down to 3.50 euros for a plug-in. 

MEXICO’S HOME GROWN $8,600 EV
Back in March, we told you about a new start-up in Mexico, called Olinia, which is developing small, low-cost EVs. The company is backed by the Mexican government to help support its auto supply chain and manufacturing. Well, Olinia just unveiled its first model called the Uno. It features a 14.7-kWh LFP battery and an 18-horsepower motor, which provide 125-kilometers or 77 miles of range and a top-speed of 50-km/h or 31 MPH. Despite its small size it can fit up to six passengers or it has enough space for a wheelchair. And to help owner’s charge, Olinia is planning to open a network of 2,000 stations across Mexico. The Uno will go on sale in the country next year with a starting price around $8,600.

VOLVO TRUCKS SEES $3 BILLION BUSINESS WITH AVs
Volvo expects autonomous trucking to become a big business by early next decade. The company forecasts revenue from self-driving truck transportation will reach $3 billion within five years. Volvo will begin autonomous operations on U.S. highways this year and plans to have 300 trucks on the road by the end of next year.

VOLVO TRUCKS SEES STRONG DEMAND
And speaking of Volvo Trucks, the company says that customer demand and deliveries in Europe are stable and at good levels and that demand in North America remains strong with production gradually increasing.

BASF WARNS IRAN WAR WILL HURT CAR PRODUCTION IN H2
German supplier BASF is warning that the war in Iran could cause supply issues for automakers. The company’s CEO says shortages of materials are becoming more likely and the war is already leading to lower amounts of sulfur and helium. Along with rising inflation, BASF says the shortages could hurt car production starting in the second half of the year.

MAGNA COULD MAKE CHINESE CARS IN NORTH AMERICA 
Magna would be interested in making cars for Chinese automakers in North America, as long as it’s a long-term deal. Speaking to the Automotive Press Association in suburban Detroit yesterday, Swami Kotagiri, the CEO of Magna, said that they need a commitment lasting at least two design cycles for it to make economic sense. Magna’s plant in Austria already makes 3 models for XPeng, and two for GAC, and it is open to doing the same in North America.  

AUDI UNVEILS ALL NEW Q7
Audi revealed the all-new Q7. Depending on the market, it’s available in 5, 6 and 7-seat configurations. In Europe, it will launch with a 3.0L V6 diesel that’s offered in two outputs, the more powerful version making nearly 300 horsepower. In the U.S., the new Q7 hits the market with either a turbocharged 2.9L V6 or a twin-turbo 4.0L V8 that makes over 590 horsepower and will do 0-60 MPH in 3.7 seconds. While Audi helped pioneer the technology for Europe, it will bring its adaptive headlights to the U.S. for the first time, which can eliminate light glare for other road users. All versions of the Q7 will continue to be built in Bratislava and prices in Germany start at just under 88,000 euros. 

BYD INTERESTED IN F1 & WEC
Yesterday we reported that BYD is bragging that it will become the world’s largest automaker by scale within the next 5 years. Now we’ve learned that Stella Li, the company’s executive VP, met with Stefano Domenicali, the President of the FIA for a second time about getting into Formula One and or the WEC for sports cars. Possibilities include BYD buying a part of the Alpine F1 team, or starting its own team with Christian Horner, the former team leader at Red Bull F1. By the way, the WECs premiere event, the 24 hours of Le Mans, is running this weekend.

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