AD #4400 – Tesla Reveals New Roadster; Tariffs Push U.S. Steel Prices Up 52%; Carvana Targets 3 Million Sales By 2035

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

MORE AUTOMAKERS DITCH DEVELOPING OWN TECH STACKS
When it comes to self-driving and connectivity tech, the automotive world is divided into three different markets. China and the U.S. will have their own unique tech stacks, while Europe will probably have a hybrid system that uses a bit of both. And that’s pushing more automakers to buy their tech stacks instead of developing their own. Volvo and Mercedes-Benz just announced they’re going with NVIDIA’s self-driving tech for the cars they sell outside of China. Inside the Chinese market, a company called Momenta is really emerging as the biggest supplier for this technology, though automakers like NIO, BYD, XPeng and Li Auto are developing their own. In the U.S., Tesla, Rivian, GM and Ford have developed or are developing their own tech stacks.

TOYOTA DEBUTS TESLA-STYLE GIGACASTINGS IN CHINA
It was just over 3 years ago that Toyota revealed it was developing the ability to produce large aluminum castings like Tesla and now will start using those gigacastings for the first time. The automaker installed the machinery at a $2 billion Lexus plant in China that’s scheduled to start producing cars next year. Toyota developed the gigacastings in-house and is currently testing the technology in Japan. These large castings allow automakers to produce chassis sections in one piece, which has the potential to eliminate hundreds of parts that still require bonding.

TARIFFS PUSH U.S. STEEL PRICES UP 52%
Here’s something that will have a big impact on automakers. U.S. steel prices are at a four-year high due to a drop in imports caused by President Trump’s tariffs. According to the American Iron and Steel Institute, steel imports have dropped 14% through the first nine-months of the year. As a result, Fastmarkets reports prices for hot-rolled coil steel are up 52% from last year. And they’re likely to keep going up since steel mills will soon start their routine end of year maintenance, which impacts more than 1 million tons of production. While high prices are hurting buyers, steelmakers will report their third-quarter earnings soon and analysts are expecting higher sales and profits.

TESLA REVEALS EXTREME STUNT-CAPABLE NEW ROADSTER
Tesla didn’t simply pull the wraps off the all-new Roadster last night, it flew, flipped and barrel rolled the electric supercar. The extreme stunts made possible by four SpaceX cold-gas thrusters easily grabbed headlines, but Tesla says this version of the car will be invite only, not approved for use on public roads and won’t be available in all regions. So it’s going to launch another version that will be a limited release and features a fan and ground sealing system that provides enough suction to hold the car upside down, even when stationary. Paired with cold-gas thrusters pointed out the back, Tesla says this version will be able to do 0-60 in under 1 second. Elon claims the new Roadster will launch “for real” in 2028, but I don’t know if he’s ever been right on a product launch and this would be 8 years after the last time he promised the second-gen version was going into production. And one last thing. It doesn’t look like the top goes down or comes off, so is it really a Roadster?

PORSCHE REVEALS HIGH-END MISSION S CONCEPT
And speaking of supercars, Porsche revealed a new concept called the Mission S that it says is the first look at its new “evolved design identity.” As we pointed out in the company’s new mid-term plan, it expects to sell fewer vehicles, but will push more upscale so it makes more money per model. And the Mission S is part of that upscale push. It represents a mid-engine sports car that will eventually sit above the 911 and is expected to become a permanent part of the lineup, not just be a one-off supercar. Who knows how close that production model sticks to this concept, but it would be interesting if it really didn’t come with any display screens.

AUMOVIO TECH SIMPLIFIES BACKING UP TRAILERS
More and more people are towing trailers, but it isn’t easy backing up with one. While automakers have developed technology that makes trailering easier, the supplier Aumovio has developed a system it’s ready to sell to any OEM. It makes it easier to hitch a trailer, back up and park, even when standing outside the vehicle. You can use your key fob or an app on your phone. In fact, with the app, you use the vehicle’s cameras to choose where you want the trailer to be parked, and the system will put it exactly where you chose. We think technology like this is going to encourage even more consumers to try their hands at towing. And that could help sales of trucks and SUVs with good capabilities.

             

CARVANA TARGETS 3 MILLION SALES BY 2035
Carvana has ambitious growth plans. The online retailer is aiming to sell 3 million new and used vehicles by 2035, compared to last year when it sold 600,000 vehicles. Carvana believes it can reach that goal with the help of its captive finance arm, which handles 85% of the company’s sales, much more than its rivals. CarMax for example has 45% of sales handled by its finance company and Lithia Motors’ handled about 20%. A big reason for the difference is because Carvana designed its financing to be easy to use and provide quick approvals. If the company hits its target, it would easily make it the largest dealer group in the U.S. And at that rate it could be able to dictate to automakers what kinds of cars to build.

LESSONS FROM THE MASTERS: CORPORATE MANAGEMENT DEEP-DIVE
Later today we’ll be posting part 3 of Chapter 3 of the 18-part video series we’re doing with former automotive executive Chris Theodore called Lessons From The Masters. This one is all about Corporate Management and Chris talks about the different types of corporate cultures that exist at car companies and their pros and cons. He also dives into Finance, IT, and the use of outside consultants. It’s great insight into what really happens inside a car company. All our Patreon and YouTube members will be moving on to the first part of Chapter 4, which starts off our discussion on Engineering. We hope you enjoy it and thanks for your support. 

But that brings us to the end of this week. Have a great weekend and we’ll be right back here on Monday.