AD #4364 – Hyundai To Launch 100 New Models Globally; Soaring Metal Tariffs Hurt U.S. Automakers; Ford Dealer Tests Parts Drone Delivery

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

HYUNDAI TO LAUNCH 100 NEW MODELS GLOBALLY
Hyundai is going on a product offensive like we’ve never seen before, which it expects to significantly boost its sales by the end of the decade. It plans to introduce over 100 new models, which includes Genesis, but not Kia. While Hyundai is likely counting all model derivatives, like an all-new extended range electric version of the Santa Fe, that’s still a ton of new vehicles. Most of its models already come off of 4 main platforms, but the automaker will standardize and commonize more parts and components to drive down costs. Hyundai, including Genesis, sold about 4.1 million vehicles last year, but it expects that to jump to over 5.5 million units by 2030. Globally, an all-new Elantra, Tucson and a yet-to-be-named B-segment SUV will all launch within the next 8 months. The EREV setup we mentioned that’s going into the Santa Fe will also go into Genesis and IONIQ brand vehicles, which is interesting because all IONIQ vehicles are EV-only right now. That setup includes a dual motor system and new in-house developed battery cells that are put in a pack that’s about half the size of a normal battery. Combined it’s expected to provide over 600 miles of range. Hyundai and Genesis will also expand into other new segments, like off-roading, high-volume performance and even 3-wheelers. That last one is mainly for markets, like India, where the automaker is expecting big growth of nearly 300,000 units by 2030. It also expects big growth in North America, Europe and China. In the AV space, Hyundai says it will have driverless operations with its AV company Motional in Las Vegas by the end of this year, then expand in 2027. And it’s providing IONIQ 5s to Waymo, which it will start delivering this year as well. Lastly, the company will deploy its humanoid robots at scale in Georgia in 2028, then around the world 2 years later. It says it will eventually have the capacity to build 30,000 humanoids a year. Kia in April said it wants to boost sales to 4.13 million units by the end of the decade and now Hyundai and Genesis say they want to hit 5.55 million sales by then. That’s nearly 9.7 million units, which would make the Group the second largest automaker in the world, leapfrogging Volkswagen and only behind Toyota, who is currently shrinking.

SOARING METAL TARIFFS HURT U.S. AUTOMAKERS
The Trump Administration launched a barrage of tariffs last year with the idea of reviving American manufacturing. But so far, American manufacturers have been hurt by the higher costs of imported materials. This year alone, tariffs will cost GM, Ford and Stellantis between $5 and $6 billion in higher costs. The Wall Street Journal reports that U.S. automakers are now paying 75% more for aluminum than the rest of the world, and 64% more for steel than what it costs in Germany. Canada produces three times as much aluminum as the United States, largely thanks to its massive hydroelectric power capacity, yet the cost of Canadian aluminum is about to double if the Administration goes through with its threat to hit Canada with 50% tariffs. So far tariffs on aluminum, steel and copper have raised $70 billion for the U.S. government. That money was supposedly going to be used to pay down the national debt. But the national debt just topped $40 trillion this week. And the interest payments on the national debt are now higher than what the United States spends on its military.

 

NEW HONDA PLANT DEPENDS ON USMCA EXTENSION
And the cost of tariffs on imported cars led Honda to consider building a new assembly plant in the U.S.  But now Honda says it will not build that plant unless the USMCA trade agreement is extended. Other automakers and suppliers are also holding back on new U.S. investments until they see what happens with the USMCA. But with the U.S. and Canada on the verge of an all-out trade war, the USMCA looks dead in the water right now.

LI AUTO REPORTS Q2 NET LOSS
Things are tough for automakers in China, especially if they don’t rely on exports. Just a year after posting a net profit, Li Auto reported a net loss of $253 million in the second quarter. Its revenue dropped 15% and its vehicle deliveries fell 11% to just over 98,000 units in Q2. The automaker is dealing with soft demand in China along with the price war, which has forced discounts that have reduced its margins. However, Li Auto expects the third quarter to be a bit brighter. It’s forecasting a 2-7% increase in sales thanks to the launch of new models and it’s also ramping up expansion outside of China.

ASTON MARTIN DROPPED FROM FTSE INDEX
Aston Martin is really struggling. Its shares are down 45% this year due to growing losses, product delays and quality issues. And now the automaker is set to leave the Financial Times Stock Exchange 250 Index, which is a stock index that tracks 250 mid-cap, blue chip companies on the London Stock Exchange. By leaving, funds mandated to track the index will have to sell their shares in Aston, which amounts to 4.2 million shares valued at $1.9 million.

CREDITORS CHALLENGE ASTON MARTIN DEBT DEAL
At the same time, some Aston bondholders are challenging a $613 million debt deal the automaker made with HPS and Authentic Brands. The bondholders argue the transaction circumvented existing creditors. So, they’ve filed an application in New York to subpoena HPS and Authentic Brands for documents and testimony because they want to use that discovery to support their case in the UK challenging the deal.

    

FORD DEALER TESTS PARTS DRONE DELIVERY
A Ford dealer in the Detroit area is launching what it claims is the first drone delivery of automotive parts in the U.S. Jack Demmer Ford has partnered with two local drone startups for the two-week test, which will see parts moved from the dealership and warehouse to a nearby auto parts center. About 12-15 flights per day are expected during the initial test, which will be limited to a two-mile radius. The deliveries are also weight-limited to 7.5 pounds. If the test goes well, the goal is to expand the deliveries to a 12-mile radius and boost to 20 flights per day.

DRIVERS DEBATE PROPER STEERING WHEEL GRIP
Yesterday we posted a poll asking you what you thought about NHTSA coming out and saying that holding your hands at the 10 and 2 o’clock positions on the steering wheel was not safe. In fact, NHTSA said the 8 and 4 o’clock position is best. Almost 300 of you participated in the poll and 28% of you said NHTSA was wrong and that 10 and 2 are the best. An equal 28% said 8 and 4 were the best. And 44% of you said the 9 and 3 positions were best.
You also gave us some great input.

Danam said, “It depends on where the spokes are on the steering wheel.” 

And he’s right, the design of the steering wheel makes a big difference.

Joe Dillard is a 9 and 3 guy, especially in an emergency. “I taught a driving improvement class where I worked. Nine and three are the best positions for making emergency maneuvers,” he said.

CX157 made another good point. “It’s not about your hands,” he said, “it’s where your eyes are pointing.”

We really liked David Hamby’s comment. “In the winter,” he said, “I prefer the warm spot where the wheel heaters are located.” And ain’t that the truth.

And then, a number of you Tesla owners, like Bob Seitz, snookmeister, RidingAndWrenching and Dylan Garrison all agreed with Airheart1, “Get FSD,” they said, “and your hands don’t need to be on the wheel at all.”

Thanks for all your comments and input, we love hearing from the Autoline audience.

And that brings us to the end of today’s report. See you tomorrow.