AD #3804 - U.S. New Car Sales Drop in April; Audi’s Q1 Profits Plunge; Ferrari Launches New V12 Powered Cars

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Sure looks to me like the EU is paving the way to slap higher tariffs on Chinese ev imports. In October of last year, the European Commission

launched an investigation to see if Chinese automakers are benefiting too much from EV subsidies.

The worry is the automakers are getting subsidies in their home market to make the evs, then shipping them to Europe, where they get additional sales subsidies, which gives the Chinese automakers greater pricing flexibility, and that would have a negative impact on the European car industry. The Commission requested information from several Chinese

companies that sell evs in Europe. In so far, it says BYD G.

Lely and Saic have not provided it with enough info. That's not too

surprising because Chinese officials said when the investigation was launched that the EU was asking for too much. And if the Commission determines that it hasn't gotten enough info,

it can use quote unquote facts available from other sources to calculate its tariffs.

European rules say that it can impose provisional anti subsidy duties nine months after the start of the probe, which was seven months ago, So I expect to see some fireworks in early July. For more than one reason, new

car sales in the US dropped more than analysts were expecting in April. According

to Global Data, automakers sold one point three two million vehicles last month, down three point nine percent compared to a year ago. Analysts were expecting a

two percent drop in sales due to one less selling day compared to last year.

The seasonally adjusted annual rate or SAR came in at fifteen point seven million vehicles. That was slightly ahead of March of this year and about the same

as April of last year. Car sales in the US had grown year over

year for twenty consecutive months, but April broke that trend, and while analysts expects sales this year to be sluggish compared to last year, they are projecting that sales will range anywhere from fifteen point seven to sixteen point one million units compared to fifteen point six million last year. Rivian is getting a bunch of

money to expand its factory in Normal, Illinois. The state is providing the

Evy startup with an incentive package worth eight hundred and twenty seven million dollars, including seventy five million dollars for a deal closing fund, six hundred and thirty four million dollars in tax incentives, and the rest will go towards the second training center. As part of the deal, Rivian has to add at least

five hundred and fifty jobs in the state over the next five years, maintain at least six thousand jobs, and invest one and a half billion dollars in its manufacturing operations. That shouldn't be too hard for Rivian currently has around eight

thousand employees in Illinois. Ins said earlier this year it would spend about one

point seventy five billion dollars on capital expenditures, including plant expansions, But that six hundred and thirty four million dollar tax incentive is over a thirty year period, so it's only a little over twenty one million dollars a year. No

doubt, Rivian will happily take the money, which it will use to build its all new R II model, but it really is a drop in the bucket in terms of what it costs to upgrade a plant. Rivian had just

under eight billion dollars in cash and cash equivalents at the end of last year, and it will certainly have to start dipping into that piggybank at some point.

Tesla is suing an Indian battery maker over copyright infringement for using the name Tesla Power to promote its products. The automaker says it sent a cease and

assist letter to the battery maker in April of twenty twenty two, but it's been unsuccess and stopping it from doing so. Tesla Power says it's not infringing

on the automaker's name because it makes lead acid batteries and has no intention of making electric vehicles. Tesla is seeking damages and a permanent injunction against the battery

maker. The case we'll head to court later this month. That's going to

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The Audi group, including Bentley, Lamborghini and Dukati really got hammered in the first quarter of the year. Deliveries came to just over four hundred and two

thousand vehicles, which is a decline of about four point seven percent compared to last year. It said it was particularly affected by supply chain issues for vehicles

with V six and V eight engines, and because those are usually its higher price models, it really impacted Audi's financial results as well. Revenue came in

at thirteen point seven billion euros, down eighteen point seven percent, operating profits slip of four hundred and sixty six million euros a massive drop of over seventy four percent, and its net profit ended the quarter at seven hundred and thirty six million euros, which is another big drop of more than fifty eight percent.

Despite those poor results, AUDI still expects to hit its financial goals for the year. Availability of vehicles with V six and V engines will improve throughout

the year, and the group plans to launch twenty new models over the next two years. Renault sees big potential for its remanufactured parts division, which it

just renamed the Remakers. At one of its plants in France, it takes

in old cars, removes the parts, cleans them, sometimes rebuilds them, and then sells the parts, which are usually about thirty percent cheaper than new.

The Remakers already offer more than eleven thousand parts, including engines, transmissions, electric motors, power electronics and infotainment systems. Renault says it wants to

grow this business by fifty percent by the end of the decade because by that time it estimates the total replacement parts market will generate eight point two billion euros.

And speaking of Renault, it's expanding its lineup of compact crossovers with the introduction of the new Symbios. The model shares a platform with Renault's Arkana fastback

suv. They also share a hybrid powertrain, a one point six liters inline

four cylinder with two electric motors. The primary motor makes thirty six kilowatts and

the secondary unit is fifteen kilowats. The total setup produces one hundred and forty

five horse power and has a range of one thousand kilometers or six hundred and twenty one miles. Renault says non hybrid versions of the Symbios will be available

later. It now has four small entry level crossovers, the Symbios, the

Arkana, austral and Senc and while that sounds like a lot, the compact suv segment is the second largest in Europe and more than five hundred and eleven thousand were sold in the first quarter. Earlier this week, aston Martin announced

it's not dropping V twelve engines from its lineup and is coming out with a redesigned version that will likely debut in the new Vanquish. But it's not the

only luxury sports car maker hanging on to V twelve's. Ferrari just introduced a

new model that's powered by a naturally aspirated V twelve engine. It's offered as

both a coop and a convertible The coop is called the twelve Cylindery, which is replacing the eight twelve Superfast, and the convertible is the twelve Cylindery Spider and replaces the eight twelve GTS. The models are powered by a six and

a half liter twelve cylinder gasoline engine that produces eight hundred and eighteen horse power.

The Coup will be available first and goes on sale in Europe in the fourth quarter of the year. It will arrive in the US in early twenty

twenty five. Racing for the Coup starts at three hundred and ninety five thousand

euros or four hundred and eighteen thousand, seven hundred dollars, and the convertible cost four hundred and thirty five thousand euros or about four hundred and seventy thousand bucks. But that brings us to the end of today's show. Thanks for

tuning in, and I hope that you have a great weekend. Auto Line

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AD #3804 - U.S. New Car Sales Drop in April; Audi’s Q1 Profits Plunge; Ferrari Launches New V12 Powered Cars

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