AD #4356 – U.S. EV Sales Turn the Corner; Anti-Musk Backlash Fading?; Backhoe Engines Go 400+ MPH

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

ANTI-MUSK BACKLASH FADING?
Is the backlash against Elon Musk’s political rants starting to die down? Last year Tesla sales went in the tank in Europe when Musk began interjecting himself in European politics. And they dropped off dramatically in the U.S. when Musk joined the Trump Administration and began slashing popular programs as part of an effort he called the Department of Government Efficiency, or Doge. But now EV many buyers seem to be shrugging all that off. So far this year, Tesla sales in Europe are up a stunning 75%. The company’s registrations also turned the corner in the U.S., growing 8% in June and accounting for 61% of all EV sales, according to Global Mobility. And remember that strike in Sweden against Tesla that started over three years ago? Well, they just called it off. That’s because the union that started the strike, IF Metall, accuses Tesla of buying off all the strikers. As the union itself admitted, if there are no strikers, then there’s no strike.

U.S. EV SALES TURN THE CORNER
President Trump gutted all federal support for electric cars and he continues to bash EVs and the people who buy them. But thanks to high prices at the pump because of the war with Iran, more car buyers are putting EVs and PHEVs on their shopping lists. Automotive News reports that U.S. EV sales in June topped 100,000 units for the first time in 10 months. And Toyota and Lexus PHEV sales are up 38% for the year and shot up 157% last month. Here’s something else that might even attract more car buyers to plug-ins. JD Power reports that EV owners are finding fewer problems with public charging stations.  

 

GERMAN AUTO JOBS LOWEST IN 20 YEARS
It’s no secret that German automakers are going through a rough time. They’re struggling with Chinese competition globally and high production costs at home. So they’re making cuts to save costs anywhere they can and because of that Germany’s auto workforce is at its lowest level in over 20 years. According to Germany’s Federal Statistics Office, through June, employment has shrunk by nearly 6% or by 42,300 workers, which puts it at its lowest level since 2005. The auto industry is Germany’s second-largest industrial employer, with more than 690,000 workers.

WILL VW SELL OFF TRATON?
But besides cutting jobs, German car companies are also selling off stakes in their subsidiaries. Volkswagen is planning to reduce its stake in truckmaker Traton, whose brands include, MAN, Scania, International and Volkswagen Truck & Bus. VW currently owns 87.5% of Traton, which is worth $19 billion, and it wants to reduce it to 75% plus one share. The company believes a reduction will help Traton’s shares better reflect the company’s performance and attract more investors.

VW TO SLASH R&D, CAP EX
And in addition to cutting jobs and selling stakes in subsidiaries, VW is also going to significantly trim its lineup to save cash. According to Germany’s Automobilewoche, VW plans to cut its model range by as much as 50% and the number of variants by up to 75% across all of its brands. The automaker invests heavily compared to its competitors. Last year, it invested €34 billion, including €19 billion in R&D.

  

AS PREDICTED, DEALER SUES POLESTAR
When news broke more than a month ago, that the U.S. banned Polestar from selling vehicles due to having Chinese-linked connected technology and that the company wasn’t going to seek an exemption, like sister company Volvo did and received, we speculated that its dealers would sue. And that just happened. A retailer in New Jersey is suing Polestar for at least $25 million in damages, alleging it used the U.S. sales ban as a cover to get out of the market. The dealer claims that Polestar was still pitching expansion plans to dealers as recently as 2026, even though the company had been warning for two-years that it faced a ban. Polestar denied to comment on the case.

LUCID BOLTS 1,000+ HP INTO GRAVITY
Lucid is coming out with a performance version of the Gravity SUV that’s inspired by the Sapphire version of the Air sedan, which is an impressive machine that features a tri-motor setup producing over 1,200 horsepower. However, the new Gravity GT-S is ever so slightly toned down from that, producing 1,070 horsepower, which launches the SUV from 0-60 MPH in 3.1 seconds. All that power does drop total range about 40 miles to an estimated 373 miles on a single charge. Other highlights include rear-wheel steering, an adjustable air suspension system and unique blue accents inside and out. The Gravity GT-S goes on sale late this year with a starting price of just under $128,000, including destination charges. 

ACURA CONCEPT A MIRROR OF CHRYSLER HALCYON
This is the future look of Acura. The company says the NEXERA concept, a 2-door sports car with a swooping silhouette, introduces its new design direction. Key styling elements will influence the look of future models, starting with the 4th-gen RDX, which it would only say is “arriving in the coming years.” The NEXERA is the work of Acura’s design studio in California and, in my opinion, it kind of looks like a 2-door version of the Chrysler Halcyon concept. 

CADILLAC HINTS AT HYPERCAR
Cadillac might sell a toned-down version of its LMDh racecar. It just revealed the V-ONE concept, which it calls “the ultimate manifestation of a customer performance
concept and is a clear sign of our ambition for the Cadillac V-Series brand in the future.” Co-developed by Cadillac Design, Cadillac Racing and Dallara, the company that makes the chassis for its LMDh racecar, it features an 830-horsepower hybrid V8 powertrain that shares its foundations with the racecar. The V-ONE also adopts a similar suspension setup, transmission and select electronics. We’ve heard that GM wants Cadillac to be “the standard of the world” again, which is a popular old tagline it used, and the V-ONE might be seen as part of that puzzle.

BACKHOE ENGINES GO 400+ MPH
Earlier this week a hydrogen powered car set a land speed record at the Bonneville Salt Flats going 406 miles an hour. That’s 653 kilometers an hour. But it didn’t use a fuel cell. It used two, twin-turbocharged, internal combustion engines that burned hydrogen. And get this. The engines actually come off a backhoe. The project was put together by a British company called JCB that makes backhoes, tractors, excavators and a bunch of other equipment. It turned to Ricardo Engineering to tune the engines and to Prodrive to build the car. The JCB Promax, as they call it, even hit 412 miles an hour on one of its runs, but it’s the average of two runs that count for the record book. The project got a lot of publicity for JCB, and made a point that ICE engines can easily run on hydrogen. But the part we like best is that they got two backhoe engines to go over 400 miles an hour.

But that’s a wrap for today’s show. Thanks for making Autoline a part of your day and I hope that you have a great weekend.