AD #4390 – BMW To Slash Custom Parts Usage; Premium vs. Regular: Do You Need It?; Hyundai Unveils All-New Tucson

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

BMW TO SLASH CUSTOM PARTS USAGE
BMW is planning to significantly increase the use of generic components in its vehicles, while reducing its reliance on custom-made parts. The automaker says off-the-shelf parts will account for the largest share of its annual $90 billion purchasing budget by 2032 and at the same time it will cut the use of bespoke parts in half. BMW says suppliers now offer more standardized parts that meet its requirements and the new strategy won’t compromise its quality or performance. This is a similar strategy Chinese automakers use, which allows them to reduce cost and develop vehicles faster.

TOYOTA OPENS MICHIGAN BATTERY R&D HUB
It may take a while for EV sales to pick back up in the U.S., but Toyota is still committed to building an EV infrastructure in the country. It just opened a brand-new battery R&D hub in Michigan. The center will help boost the company’s testing and evaluation capabilities to develop battery technology, from sourcing raw materials to customer applications and recycling. The facility will also evaluate batteries for Toyota’s battery plant in North Carolina, as well as its manufacturing plants across North America. Toyota will even open the new battery center to other companies, which includes access to research with the University of Michigan Electric Vehicle Center.

TOYOTA TO BUILD EVs IN ARGENTINA
Legacy automakers didn’t believe South America was ready for electric vehicles but BYD and Great Wall Motor are not only selling, they’re building EVs in Brazil. So now Toyota is planning to invest $1.3 billion to build fully electric vehicles in Argentina. According to Argentina’s Economy Minister it represents the single largest investment in the country’s automotive history. It’s not known when the new plant will open or what models it will build. But Toyota has been building vehicles in Argentina since 1997 and currently produces the Hilux pickup, Hiace van and the SW4 SUV, which is called the Fortuner in other markets.

CHINESE AUTOMAKERS TARGET GROWING EU MARKET
As new car sales stall out in China, Europe has become a major target for Chinese exports. Chinese automakers doubled their sales in the first half of this year, capturing more than 9% of the EU market. And they’ve only just started. The Paris auto show in two weeks will be full of Chinese automakers, with 7 global reveals and 20 Chinese brands exhibiting their line-ups. Meanwhile, GAC announced that it will add 200 more dealers and 12 new models to its line-up in France by 2030. Magna currently makes cars for GAC at its plant in Austria, but GAC says it wants to ramp up local production even more. With German automakers announcing plant closings and hundreds of thousands of layoffs, Ford CEO Jim Farley said it’s already too late for Europe to protect its domestic industry.

          

PREMIUM VS REGULAR: DO YOU NEED IT?
Do you put premium gas in your car? Well Consumer Reports says it’s got good news for you. It tested two luxury SUVs and found that premium gas provides virtually no difference in fuel economy or acceleration. Premium gas does have higher octane and your car will run slightly better on it. But unless you’re racing the car next to you, most people will never notice the difference. Consumer Reports says that if your car recommends premium, you probably don’t have to use it. But if it requires premium, then you’d better use it. I say there’s also a higher risk of carbon buildup inside the engine by not using the recommended fuel, but if you’re looking to save a few bucks, filling up with regular every now and then probably won’t hurt things.

HYUNDAI UNVEILS ALL-NEW TUCSON
Hyundai’s best-selling vehicle in North America just got a bold makeover. The all-new 2027 Tucson features the company’s “Art of Steel” design philosophy and is longer, wider and taller than the current model. There’s gas, strong hybrid and plug-in hybrid options that all use a turbocharged 1.6L 4-cylinder engine or a non-turbo 2.0L gas engine is available in select markets. Both the hybrid and plug-in use a dual-motor setup, but the main motor in the plug-in is much more powerful and it also has a 17-kWh battery pack, which is significantly bigger than the hybrid. That setup is estimated to return about 50 miles or 80 kilometers of EV-only range. Moving to the interior, the dash is highlighted by a thin, high-mounted nearly 10-inch display in front of the driver and a roughly 13-inch or 17-inch infotainment screen in the middle. But more importantly the new Tucson will be the first model from Hyundai in the U.S. to feature the company’s new infotainment platform, called Pleos Connect. It’s based on Android Automotive’s operating system, but users can still wirelessly integrate Apple CarPlay or Android Auto. Breaking Pleos down to its basic functions; the platform brings a new interface that’s meant to be more modern and user-friendly; it offers more advanced navigation and a new AI voice assistant, called Gleo AI; plus new apps, like YouTube can be added to the system. Sales of the all-new Tucson kick off in Korea later this year, followed by the U.S. and Europe in 2027.

TOYOTA TARGETS AI BOTS FOR MARKETING
While most companies try to avoid AI bots, Toyota is actively seeking them out. Automotive News reports that AI bots or agents are being used more and more by consumers when researching a vehicle, which resulted in traffic at Toyota.com dropping by about 20%. So the company switched from SEO or Search Engine Optimization to GEO or AEO, which stands for Generative or Agent Engine Optimization. Toyota now reviews its marketing prompts and content to specifically target AI bots in the hopes that they get used in AI-generated answers. 

CHRIS THEODORE BREAKS DOWN CORPORATE MANAGEMENT
The next installment of our 18-part video series with Chris Theodore will get posted later today. And it’s all about Corporate Management. Chris talks about the lessons he learned of different management styles and compares the approach of different leaders like Lee Iacocca, Bob Lutz, Roger Penske, Alan Mulally, Ferdinand Piech and even Steve Jobs and Elon Musk. All of you Autoline members already know that because you got access to that video a week ago. Today, you’ll be getting access to Part Two of Corporate Management, which discusses different types of corporate structures, along with the advantages and disadvantages each one offers. And as always, we really thank our Patreon and YouTube members for your support. We hope to bring you the kind of information and insight on the automotive industry that you’re not going to find anywhere else.

But that wraps up this week. Have a great weekend and we’ll be right back here again on Monday.