AD #4374 – Volvo Will Sell Chinese Cars in EU Dealers; Ram Expects 60% Sales Boost; Toyota Adds Go-Karts to Lineup

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

VOLVO WILL SELL CHINESE CARS AT EU DEALERS
Volvo says it finalized its deal with Geely to become the exclusive seller of Lynk & Co vehicles in Europe. Starting from the beginning of next year Volvo will sell and service Lynk & Co vehicles through its European retail network. While both companies share platforms from Geely, Volvo says there will be a clear difference between the two brands. And by sharing retail space, Volvo expects dealers to see an increase in sales and service and Geely hopes to reach more customers.

XIAOMI SU7 SALES FALLING FAST
The Xiaomi SU7 hit the showrooms in China a little over two years ago and instantly captured headlines around the world. It sold out its first year of production in a matter of days. A high performance version with 1,500 horsepower called the Ultra smashed the Nurburgring record for a production electric car. Ford CEO Jim Farley even called it his favorite car. But that was then. Last year, the China Auto Quality Network said the SU7 had the worst quality of 29 new BEVs that it evaluated. And now sales are dropping fast. So far this year, it went from the 4th best selling car in China to 10th despite a major refresh in January. And sales of the SUV version, the YU7, have also dropped dramatically. This shows the intense competition in the Chinese market. You can be flying high today, but in a ditch tomorrow.

    

TESLA COULD USE ROBOTAXIS INSTEAD OF REPAIR LOANERS
Tesla has come up with a unique idea for using its robotaxis. According to Not A Tesla App, there’s code in Tesla’s latest app that hints the company could start offering customers robotaxis instead of loaners when getting their car serviced. But that could take awhile since Tesla doesn’t have approval to operate its robotaxis everywhere yet.

RAM EXPECTS 60% BOOST IN SALES
Ram believes it can aggressively boost sales over the next four years, so much so that it will outsell the Jeep brand in the U.S. market. Automotive News reports that Ram is targeting sales in North America of 825,000 vehicles by 2030, which is 60% more than it sold last year. The key is getting into new segments. Ram will add both compact and midsize pickups to its lineup as well as a 3-row SUV. And it’s adding high-performance, on-road variants of its existing pickups. Now our question is, who does it think it can take market share away from to boost its sales so much?

 

COSTCO OIL PRICES SHOOT UP
In May we warned of an increase in oil change prices because 44% of the U.S.’s synthetic engine oil comes through the Straits of Hormuz, which is blocked up due to the war with Iran. And the effects of that have now trickled down to Costco. The cost of full synthetic motor oil at the retail giant has gone from the mid-$30 range for a 10-quart jug up to $58. And a big spike in engine oil prices won’t only hurt regular motorists, it will also hurt fleet operators and car dealers who offer pre-paid and lifetime maintenance programs.

DAIMLER TRUCK SELLS ENGINES TO DEFENSE COMPANIES
Here’s yet another example of the auto industry collaborating with the military. Daimler Truck Defense and Mercedes-Benz Powertrain will assist defense companies in producing engines for military vehicles. They’ve signed a deal with Polish defense group PGZ to provide them with engine components and to help it establish assembly capabilities in Poland. Operations are expected to start next year and over the long-term PGZ is targeting to build a four-digit number of Daimler Truck diesel engines every year. The engines will be used in military vehicles for the Polish Armed Forces.

TOYOTA WILL SELL GO-KARTS
Toyota is expanding into the world of go karts. GAZOO Racing, Toyota’s racing division, is going to start selling an entry-level racing go-kart that features sliding pedals and a tilting steering wheel, so both children and adults can ride. Power comes from a carbureted 215cc engine that’s linked to the rear axle via a rubber belt. The kart is made at a workshop in Japan that still follows the principles of the Toyota Production System and pricing starts at about $2,500. Toyota wants to see more people involved in motorsports and sees karting as a gateway for new racers.

3D AR HUD COULD ELIMINATE DISPLAY SCREENS
Instead of a big screen dominating the real estate on your dashboard, what if they just all went away? That’s what the supplier Hella wants to do. It’s working with a Finnish startup called Distance Technologies that developed a 3D head-up display with augmented reality that gets projected onto the windshield. Unlike HUDs that use mirrors to project 2D displays, this system displays 3D images and does not use mirrors, which reduces packaging space. Hella says it can display road hazards alerts, highway exits, or other things without distracting the driver. And since it’s software defined, more features can be added in the future. Kia already used the system in its concept car called the Vision Meta Turismo, which suggests it could be ready for production.

We sure have a lot to talk about on Autoline After Hours today. Tesla’s unboxed assembly. Sean Duffy attacking Ford. And China’s sinking car sales, just to name a few. We’ll have Dan Hearsh from AlixPartners as our special guest, and Tu Le from Sino Auto Insights is back by popular demand. So join John and Gary when it all goes live at 3 pm eastern time on the Autoline website or our YouTube channel.

But that’s a wrap for today’s show. Thanks for tuning in and I hope to see you later.