AD #4413 – Ford Unveils 1,200-HP Megazilla Engine; U.S. Trade Policies Fail to Boost Car Sales; Mercedes Develops 800-V Battery Software Tech

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

DEMOCRATS TAKE CONGRESS: IMPACT ON AUTOS
As you all likely know by now, Democrats took back control of Congress from Republicans yesterday. And while we don’t normally follow election results, we’re talking about it because we think the outcome will likely have an impact on the auto industry. While it’s unlikely that we’ll see any changes in regulations in the next two years, since those policies are controlled by regulators appointed by the Trump Administration, we do think there will be a big push back from the new Congress on tariffs, especially the ones placed on Canada, since it’s such an important part of the North American auto industry. 

  

TRADE POLICIES FAIL TO BOOST CAR SALES
Speaking of tariffs and trade, Browne Consulting released its latest analysis of the U.S. light vehicle market. It says the Trump Administration’s trade policies have not boosted vehicle sales or production very much, or at least not yet. Total vehicle sales in the U.S. are down almost 2% this year. The number of cars made in the U.S. is up by only 0.4%, and automotive employment is actually down 0.1%. The automotive trade balance is somewhat better. The deficit in cars, trucks and parts is about $7.4 billion lower than before. But U.S. exports are down by $7 billion, and Browne says that tariffs have pushed the average price of a car up by $2,200.  

BMW REPORTS WEAK THIRD QUARTER EARNINGS
BMW posted its third quarter earnings and things are going from bad to worse. It sold just over 551,000 cars in the last three months, down more than 6%. Motorcycle sales fell 12.5%. It brought in €30.4 billion in revenue, down almost 6%. And its earnings before interest and taxes plummeted almost 30% to €1.5 billion, while its net profit fell almost 15% to €1.4 billion. BMW’s core automotive group posted a measly 3.3% EBIT profit margin, and BMW warned investors that it will fall to only half of one percent or even a negative half percent in the coming quarter, which is when it will start booking big restructuring charges. Even so, investors seem to believe the worst is behind the company. BMW stock was up 2.6% this morning. 

   

LEAR BUILDS FULLY AUTOMATED MICHIGAN PLANT
Lear Corporation, the giant seating supplier, posted some pretty good Q3 earnings. It brought in $5.7 billion in revenue, up 1.6%, and posted a net profit of $136 million, up more than 26%. But what caught our eye was company CEO Ray Scott talking to analysts about a new automated factory it’s building in Orion, Michigan. It was designed as a fully automated factory from the ground up, not retrofitted. All the material handling and storage, and integration with production lines is done with automation. Even the trucks shipping out seats will be loaded automatically. Lear says all that automation frees up the humans in the plant to work on great value added adjustments. The plant will actually create 450 new jobs, and is scheduled to open early next year. 

GM EXPANDS PHEV LINEUP IN CHINA
GM and Ford have largely ignored hybrid technology in the U.S. market, but both have new PHEV models going on sale in China. The Ministry of Industry and Information Technology revealed a new plug-in hybrid version of the Buick GS sedan is now going through the homologation process. Jointly developed with SAIC, the model features a 1.5L turbocharged gas engine that’s paired with a 165 kW or 220 horsepower electric motor and an LFP battery pack. 

LINCOLN EX8 PLUG-IN HYBRID UNVEILED IN CHINA
Meanwhile, Lincoln is coming out with a new PHEV version of the Aviator next year, called the EX8. There’s no info on the electric motor, but the 1.5L turbo gas engine comes from Ford’s joint venture partner Changan and the LFP battery pack comes from CATL. Ford showed off a similar-ish-looking concept recently, called the Edge L. So maybe it will get a new PHEV for China too.  

MERCEDES DEVELOPS 800-VOLT BATTERY SOFTWARE TECH
Instead of letting physics dictate how a battery behaves, Mercedes is developing a new software solution. It calls the system Power Converter and it features tiny software-controlled micro-converters that are attached to individual cells or small cell groups, which help regulate energy flow in and out. In a typical battery as the cells lose their charge, the voltage of the entire pack falls, impacting the vehicle’s performance. But the Power Converter system will keep the pack at 800-volts whether it’s at 100% or 5% charge. Mercedes says this means it could use smaller packs, different layouts or even multiple cell chemistries within a single pack. And since the converters control energy flow in both directions, additional hardware required for AC and DC conversion and bidirectional charging is eliminated.  

HONDA LAUNCHES FIRST E-MOUNTAIN BIKE
Honda is launching its first e-mountain bike. The company actually teamed up with ROTWILD, a German bike maker, and it looks like these are re-badged versions of ROTWILD’s bikes with some extra paneling and Honda logos. They do seem like very capable bikes, but I don’t know anything about mountain biking, so maybe someone with some experience can provide some feedback in the comments section. Similar models on ROTWILD’s website sell for 9,000 to 15,000 euros, so I would expect Honda’s to have a similar price tag. 

FORD UNVEILS 1,200-HP MEGAZILLA ENGINE
Ford says it developed the most powerful crate engine ever by an automaker. The Megazilla 2.0 engine is a supercharged 7.3L V8 that can deliver over 1,200 horsepower and more than 1,000 lb-ft of torque. It uses the same engine as the Megazilla 1.0 but it has a stronger block, supercharger-specific camshaft, upgraded pistons, larger fuel injectors, a different belt drive and damper, and a 3.0-liter Gen 6 Whipple supercharger. Ford is demonstrating the new engine in a modified Bronco called the Frostwarden which is currently on display at the SEMA show. But don’t get too excited about the model, Ford says it won’t be available for purchase.

And that brings us to the end of today’s show, which is also World Engineering Day. Thanks for tuning in.