AD #4389 – VW Goes to War with Its Union; BMW Using AI to Replace Jobs; India Sets 1st MPG Regulations

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

VW GOES TO WAR WITH ITS UNION
It sure looks like the Volkswagen Group is ready to go to war with IG Metall, the German union that represents over 130,000 VW workers in the country. Yesterday, VW AG invoked a “re-open clause” that allows it to terminate several parts of the existing contract because the company’s financial situation is quickly falling apart. Meanwhile, IG Metall is demanding a 5% wage increase which VW rejected outright. And the union rejects Volkswagen’s re-opening of the contract. The union promises to confront the company, and that sure sounds like a strike threat.

BMW USING AI TO REPLACE JOBS
Big cuts are coming at the BMW Group. By the middle of next year it wants to reduce the number of divisions within the company and their associated management roles by 20%, which will result in a similar reduction at all the organizational levels below. One way BMW plans to make up for all those losses is by using AI across all departments and corporate levels, including for core vehicle development processes. Additionally, BMW is planning a significant adjustment to its drivetrain portfolio, for example you can no longer get a diesel in the new 3 Series, plus it will cut the number of model variants it has and will come out with more regional lineups. The company says it plans to build and export more out of China. The U.S. will get a new high-end SUV. And Europe will get new compact cars based on the Neue Klasse architecture. But these moves are just the start. BMW says more even topics are being evaluated, with decisions expected by the spring of 2027. The Group hopes its new corporate structure will see it return to an EBIT margin of 8-10% by the start of the next decade.

       

VINFAST STRUGGLES TO REVIVE U.S. BUSINESS
Even though it faces a huge uphill battle, Vietnamese EV startup VinFast isn’t giving up on the U.S. market. The automaker has only sold 389 vehicles through July, down 63% from a year ago. And it has fewer than 12 active dealers. So to help revive sales, it’s launching a refreshed version of its VF 8 crossover, starting a certified pre-owned program and opening three new dealerships. But at the same time, the automaker is being sued by the state of North Carolina for failing to meet construction deadlines as part of an incentive agreement for a $4 billion plant. It was supposed to open in 2024 but VinFast has pushed it back to 2028. While the automaker is having a tough time in the U.S., it’s doing better globally. In the second quarter it sold more than 70,000 vehicles, up 96% from a year ago.

INDIA SETS ITS FIRST MPG REGS
There are not many automotive growth markets left in the world, but India is one of them. Automakers sold 4.5 million new vehicles there last year and they think that could grow to 6 million by 2030. So India is embarking on its first fuel economy regulations, which go into effect in 2027 and require a 17% fleet-wide improvement in fuel efficiency by early 2032. But it’s a technology-neutral approach, and automakers can use any combination of IC engines, hybrids and electrics to get there. And those who get ahead of the curve can sell credits to others who get behind so the industry has an easier time transitioning to the new standards.

GM USING ON-START FOR FLEET SERVICES
The Detroit 3 see a big opportunity in fleet management for the commercial vehicles that they sell. Ford Pro is doing very well. Stellantis launched its Stellantis Pro One services earlier this year. And now General Motors is coming out with OnStar Fleet Intelligence. Managed through a single account, the platform uses vehicle data and GM’s connected services to allow fleets to track orders, manage vehicles, and access information, like fuel efficiency, range and vehicle protection. Select GM Fleet customers can now access the platform and more customers will be added through a phased rollout.

EVs IN U.S. USED 14 B kWh IN H1
EVs in the U.S. are consuming electricity at a slower pace. According to the Energy Information Administration or EIA, electric vehicles used up nearly 14 billion kWh of electricity in the first half of this year, about 8% more than the second half of last year. But that was less growth seen in previous 6-month periods measured by the EIA. Even so, EV electricity use has more than doubled in the last 3 years.

IONNA CHARGING RATED TOPS BY JD POWER
And better public charging likely played a role in that growth. IONNA, the EV charging partnership between BMW, GM, Honda, Hyundai, Kia, Mercedes, Stellantis and Toyota, was recently ranked the top DC Fast Charging provider by JD Power. And now it has opened more than 180 charging sites, which is more than double the number it had at the start of the year.

BOSCH REPURPOSES SENSORS TO DETECT WET ROADS
You know those ultrasonic sensors on your car that trigger warnings when you get too close to something? Well Bosch figured out an ingenious way to use them for something else. When your car drives on a wet road, the tires compress the water, which makes a noise. In fact tires make a different noise depending if the road is damp, wet or really wet. So Bosch figured out it could use the ultrasonic sensors to detect those noises. It then feeds that info into the car’s stability control and antilock braking systems so they can compensate for less traction. We just love these examples of taking something that’s already on a car, and using it for something completely different.

DAVID COLETTI ON AUTOLINE AFTER HOURS
So, be sure to tune in to Autoline After Hours today when we’ll have David Coletti, the president of Consumer and Original Equipment tires for Bridgestone, as our special guest. Tires, as you know, are an key part of chassis development, and David will have some good insight into
where automakers see opportunities to grow their business. So join John, Gary and me when the show goes live at 3 pm eastern time today.

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