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Runtime: 7:48
0:00 Audi Plans $4B U.S. Plant
1:17 Audi Splits Brand Strategy in China
2:02 Toyota Sells Next-Gen Hybrid Powertrains
3:06 Chinese Automakers Overtake Japanese In Europe
3:44 BYD Sales Surge in South Korea
4:14 China Resumes Autonomous Vehicle Testing
4:47 NHTSA Proposes Cyan Autonomous Lights
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
AUDI PLANS $4B U.S. PLANT
Audi paid over $1.3 billion for U.S. tariffs last year because its vehicles are either imported from Europe or Mexico. So it plans to spend $4 billion to build a new manufacturing plant in the U.S. Located in Georgia, construction is scheduled to start next year, while production is slated for the early 2030s. The site will have an expected capacity of up to 200,000 vehicles and would build the Q7, 8 and 9, which are currently made in Slovakia. But Audi is already getting pushback from the German union IG Metall. Not only does it say the announcement, which was made alongside President Trump, violated the company’s code of conduct, it still needs approval from the VW Group’s supervisory board, which has strong labor representation. The Volkswagen Group itself is also locked up in a dispute with IG Metall because it terminated 10 of the 13 collective agreements it has with the union in the hopes of slashing 100,000 jobs and closing 4 assembly plants in Germany. The two sides agreed to start negotiations over those cancelled agreements in late November.
AUDI SPLITS BRAND STRATEGY IN CHINA
And speaking of Audi, it’s restructuring its China operations, splitting between its two joint-venture partners. FAW will focus on developing gas-powered and electric vehicles under the traditional four-ring brand, while SAIC will develop vehicles for the Chinese market under the AUDI brand, with four letters. China is Audi’s largest market, accounting for 38% of its global sales but the automaker is struggling. Last year, it sold around 618,000 vehicles, down 5% from the year before. And this year sales are down another 19%. In addition to the restructuring, Audi also made leadership changes in China last week in an effort to turn around its business.
TOYOTA SELLS NEXT-GEN HYBRID POWERTRAINS
Toyota expects to generate big bucks by selling its next-gen powertrain technology to other automakers. Automotive News reports that this year alone it’s forecasting to generate over $550 million in sales of engines and hybrid systems and by 2032 Toyota thinks that will jump to nearly $1.7 billion. The company is coming out with new 1.5L and 2.0L 4-cylinder engines as early as next year that are more compact, have better efficiency and make more power. They’re also specifically designed for hybrid and plug-in hybrid applications. While Toyota didn’t reveal what automakers it plans to sell to, it has strong partnerships with Subaru, Mazda, Suzuki and Daihatsu.
CHINESE AUTOMAKERS OVERTAKE JAPANESE IN EUROPE
Chinese automakers outsold Japanese automakers in Europe for the first time over a full quarter. According to Dataforce, registrations of Chinese brands doubled in the third quarter, accounting for 12.7% of total sales in Europe, compared to 11.9% for Japanese brands. And in September, Chinese brand share increased to a record 14.5%. That growth is likely to cool off after the EU placed a cap on Chinese hybrid imports earlier this month. But Chinese brands are boosting hybrid sales while they can until the restriction goes into effect.
BYD SALES SURGE IN SOUTH KOREA
But it’s not just Europe, Chinese brands are also making big gains in South Korea. BYD has sold 20,000 vehicles through September, which is double its initial goal for the year. And it’s now outselling Volvo and Toyota, which is pretty impressive since it only started selling passenger cars in South Korea last year. And more Chinese brands are starting to enter the market. Zeekr began deliveries last week and Xpeng and Chery will also start sales soon.
CHINA RESUMES AUTONOMOUS VEHICLE TESTING
China is easing off restrictions it put in place earlier this year on self-driving cars. The government suspended issuing new licenses for autonomous vehicles so it could conduct an industrywide safety review after Baidu suffered an outage that stranded passengers and disrupted traffic. But now China has started issuing approvals again. Volkswagen says its now testing Level 3 technology and is aiming to deploy the system next year. And Xpeng announced it received approval to test Level 4 technology.
NHTSA PROPOSES CYAN AUTONOMOUS LIGHTS
U.S. regulators say vehicles that can drive on their own need to provide some sort of indication that a human is not in control. So NHTSA is proposing to use cyan or bluish-green lights to show that a vehicle is operating autonomously. While we agree that there should be some sort of indication, we wonder if these lights are the right move. China essentially banned bluish-green lights for autonomy because they can be distracting to other road users at night or they can be mistaken for turn signals.
But that’s a wrap for today’s show. Thanks for tuning in.
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GM needs to buy some Toyota hybrid powertrains for everything they sell, except Corvette and big trucks/SUVs.
While having some type of light to indicate that a vehicle is being driven autonomously, is an interesting idea, my question is it meant as just a notification, or a warning to other drivers around the vehicle in question?! If it’s just a notification, why do we need it? When drivers are using their cruise control, lane-keep-assist, emergency brake assist and other passive safety equipment, there is no need for a notification to other drivers. If the intent is a warning, then why are they being allowed to operate on the road with other vehicles?!?! When a car’s flashers or hazards are flashing, they are designed and intended as a warning, indicating that there’s danger ahead, especially when it relates to a vehicle at the side of the road. If driving autonomously is safe for the occupants in the vehicle, as well as the other vehicles on the road, why would there need to be any type of alert system, letting others know that the vehicle is not being driven by a human? IMHO, why are lawmakers worried about having lights that indicate the vehicle is an autonomous mode, when they have yet to determine who’s responsible if an autonomous vehicle is involved in the collision with another vehicle. Who’s responsible? Is the technology responsible for not avoiding the collision? Is the driver using the autonomous equipment responsible for not being alert to us surroundings? Is the other driver responsible when with the blue/green lights are one, indicating that the driver isn’t paying attention? If a Waymo or Cybercab were involved in a collision, one might point to those vehicles as responsible, since the tech is new. Yet, what about a vehicle using Blue Cruise or Super Cruise was involved in a collision? What the person that was hit, ran a yield or stop sign or stoplight and was involved in a collision with a vehicle using autonomous driving and had the right of way. Couldn’t they argue that, had the driver been paying attention and if the system was working functioning properly, they/it could’ve/should’ve been able to avoid the accident and, therefore, they are not responsible since the driver in the autonomous vehicle wasn’t paying attention and/or the system didn’t live up to its promise, regarding accident avoidance?!?! I don’t think Ford or GM would want to be on the hook, or said to be responsible, for what separate driver did, while their customer/operator was using the equipment on one their vehicles, as intended, even though such use is at their own risk.
….it still makes more since for VW to turn the Scout plant into a NA Audi plant, then to build a new one in the US. How can they say their cash-strapped and laying off both white and blue collar workers in their home market, yet turn around and spend $4 billion building a new assembly plant, and hire people to work in it? It seems very disingenuous.
Audi (VW) IS cash strapped in Germany thanks to the EU’s climate fines and outrageous energy costs. The EU GDP is 2/3 that of the US and EU incomes are about 70% of those in the US. Their standard of living is lower. BE is already selling anything not nailed down to raise cash that their sales cannot provide. They absolutely need the US market to stay afloat. Thats why they’re firing in Germany and building in the US. In short, Trump’s tariffs forced them to build here, just as planned.
Blue lighting i thought was for police. Perhaps a light comes on in the front at low speeds (for pedestrians) and stays lit on the back at high speeds for following motorists. Color could be amber or yellow