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Runtime: 8:19
0:00 DOJ Fain Probe May Extend UAW Federal Oversight
0:54 Honda Shrinks in China but Extends GAC Partnership
1:36 Honda Considers Building New North American Plant
2:21 China Auto Suppliers Pivot to Booming Motorcycle Sector
3:58 U.S. EV Sales Stabilize in May
4:43 Electric Cars Outsell All Other Powertrains in Germany
5:38 China Quietly Restricts Rare Earth Exports to U.S.
6:34 Struggling Aston Martin in Talks for New Liquidity
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
DOJ FAIN PROBE MAY EXTEND UAW FEDERAL OVERSIGHT
The Department of Justice’s investigation into UAW President Shawn Fain, could lead to an extension of the union’s federal oversight. It was put under federal watch for six-years as part of its corruption scandal that included two past presidents going to prison. That oversight is set to expire in January, but experts say it will likely be extended because of the investigation into Fain. The monitor has accused him of seeking benefits for his fiancée and her sister and retaliating against two top officials for not following his orders, which Fain denies. The UAW will vote for a new President later this fall but the investigation into Fain isn’t expected to be resolved by then.
HONDA SHRINKS IN CHINA BUT EXTENDS GAC PARTNERSHIP
Like many foreign automakers, Honda is shrinking in China. The company peaked in 2020 when it sold a little over 1.6 million vehicles, but since then sales have dropped by roughly 1 million units. That’s forced Honda to adjust to meet demand, however it’s not giving up on the Chinese market. It just signed an agreement to extend its joint venture partnership with GAC through 2038. The two companies first formed a partnership in 1998 and currently share production, sales and service operations. Honda also formed a joint venture with Dongfeng at the same time as GAC and that partnership currently lasts through 2033.
HONDA CONSIDERS BUILDING NEW NORTH AMERICAN PLANT
Speaking of Honda, it already has 8 vehicle manufacturing sites in North America, but its CEO says those plants are almost full, so it’s considering building another one. Its facilities in the U.S., Canada and Mexico are currently operating at about 90% of their capacity and Honda is worried that it doesn’t give it enough of a buffer. North America accounted for 40% of Honda’s global sales last year and CEO Toshihiro Mibe told a Japanese newspaper “I want to increase the number of sales in North America a lot.” With a goal of increasing market share, along with tariffs, Sam Fiorani of Autoforecast Solutions thinks any new capacity would almost certainly be added to the U.S.
CHINA AUTO SUPPLIERS PIVOT TO BOOMING MOTORCYCLE SECTOR
We’ve talked a lot about how new car sales keep falling in China and the impact that’s having on the industry. Now automotive suppliers are looking to other sectors to help offset the drop. Gasgoo reports that some companies have started targeting motorcycle makers. Last year nearly 22 million motorcycles were sold in China, which is actually slightly more than new car sales and represented an increase of more than 10%. This could also be a benefit to motorcycle makers, who are looking to add new tech and higher quality parts.
U.S. EV SALES STABILIZE IN MAY
EV sales are starting to recover in the U.S. According to Mobility Global, more than 98,000 EVs were registered in May, a drop of just 0.7% compared to a year ago and the smallest year-over-year decline in 8 months. Overall, EVs accounted for 7% of the market in May, only down 0.1% from a year ago. Tesla helped boost the segment with registrations increasing 27% to more than 54,000 vehicles. Hyundai was a distant second with just over 6,000 registrations, which was also a 27% increase. Rivian was in third place with 4,600 registrations, just ahead of Chevrolet with 4,400.
ELECTRIC CARS OUTSELL ALL OTHER POWERTRAINS IN GERMANY
Speaking of electric car sales, pure EVs outsold all other powertrain types in Germany in June, the first time that’s ever happened. Just over 84,000 BEVs were sold last month, beating out hybrids by less than 1,000 units. Meanwhile, about 61,000 gas cars were sold and interestingly PHEVs nearly outsold diesels in Germany. Those June sales put BEV market share at nearly 30% and no doubt price, along with more models, are helping to fuel that growth. While the average sticker price of an EV has gone up in Germany, if you compare EVs from 2020 to EVs with similar options from 2025, prices have gone down by about 18% when adjusting for inflation. By comparison, prices for similar ICE vehicles have gone up roughly 2%.
CHINA QUIETLY RESTRICTS RARE EARTH EXPORTS TO U.S.
Last year, China started limiting exports of rare earths. After a global blowback, it agreed to delay those restrictions, but according to a new report from Bloomberg, China is still limiting rare earth exports to the U.S. despite the truce. Customs data shows that exports of rare earth magnets to the U.S. in the first half of the year were 20% below the average level seen between 2022 and 2024. China produces 90% of the world’s rare earth magnets and if it implements its full restrictions, it could have a massive impact on the auto industry. According to the International Energy Agency, if the full controls go into effect, it will disrupt $6.5 trillion of production in the automotive, high-tech, defense and energy industries outside of China. And half of that would impact the U.S. and Europe.
STRUGGLING ASTON MARTIN IN TALKS FOR NEW LIQUIDITY
Aston Martin is in talks to get more funding. The British sportscar maker is struggling with weak demand in China, product delays and U.S. tariffs. Aston says it’s in talks with funds to help ensure it has enough liquidity to support its strategy. The funding would be backed by Aston assets that would be placed beyond the reach of existing creditors through a transaction known as a “drop-down.”
But that brings us to the end of today’s show. Thanks for tuning in.
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Sean, Why does the US continue to pretend that it is a victim whenever another country does something cheaper or better than the US? In the past, the US would have just figured out an even better way and just got on with the job. The US has the best universities, the best funding and the best markets. Did GM and Ford just lose their mojo? TESLA has demonstrated how it can be done. Can’t GM and Ford just copy what TESLA is doing? As far as that goes, why can’t GM and Ford have a joint venture or the same supplier to develop some of the new tech or processes that they need. They do it for transmissions, bumpers, seats, glass etc. Why not for electric motors, batteries and so on. In the short term, nothing they develop separately is going to give them a long term advantage so why get so proprietary? Especially with batteries, the final best chemistry does not yet exist so their is no need to do it inhouse.
Kevin A —
I can’t speak for Sean or John, but here are a few things that may help answer some of your question. Many of the engineers that are working in the Chinese auto industry, went to, as you say, the best universities here in the US and some of the best schools in other countries! They then took that knowledge home and are now using it to support the local automotive industry at where they live. With that, the Chinese auto industry also has hired some of the best engineers from around the world, to work for them as well! Also, having purchased a number of businesses around the world, the intellectual property, and in some cases the personnel, have come with them. China has modeled itself in many ways after the best the world has to offer, but without of the much of the legacy cost, and in some cases, the safety constraints that other countries have adopted. So, they don’t have all the ‘challenges’ that other OEMs and countries have baked into their operations. Whether others agree with it or not, every country has the right to set the rules for what they do in their country. Some of those best practices, may limit what local companies are allowed to do. Yet, this is why local companies are up in arms about what Chinese companies are allowed to sell on their shores, for the rock bottom prices they charge. It’s not necessarily about building a better mice trap, for in many respects it’s about a level playing field!
In the past, smart young people from around the world, including from China, came to U.S. universities, especially for advanced degrees, and a number of them stayed and contributed in the U.S. I worked with some of them. Now, with the current regime, these people will be going to school elsewhere, and the U.S. universities are being degraded. This is sad.
Tesla has demonstrated what VW did 60 years ago. You can succeed with few models, if they work. I not only despise Elon Musk, but despise the “touch screen for everything” operator interface, so I wouldn’t buy a Tesla, but after years of surviving by selling carbon credits, they are now making money by actually selling cars. A lot of people don’t care about those things. Tesla has established themselves as the leader among BEV makers with efficient powertrains, the best public charging network, and among the best semi-autonomous systems. Meanwhile, GM sells far fewer EVs with about 4 times as many models as Tesla.
For the most part, GM, Ford, and Stellantis North America are nothing but truck companies. As long as the Great American Truck Fetish continues, they will survive, but if the market changes and they need to compete with Toyota, Honda, and H/K and sell actual cars, they will be in trouble. Ford doesn’t even want to sell high volume CUVs, dropping Escape, one of their best selling products.