Detroit automakers face challenges in China due to fierce competition and losses, with experts advising a strategic retreat. Meanwhile, Toyota's chairman sees declining shareholder support amid governance concerns. Chinese automakers push back against EU tariffs, while BMW updates its hybrid X3 and plans new electric models. Land Rover revives the Freelander as an EV in China, and Jeep brings back its powerful V8 Wrangler for a final edition. Ferrari's first electric car will carry a hefty €500,000 price tag. A Canadian company, Tyromer, introduces a chemical-free tire recycling process already in production globally, promising environmental and cost benefits.
Topics:china automotive marketdetroit automakerstoyota leadershipeu tariffs on chinese evsbmw hybrid and ev modelsland rover freelander evjeep wrangler v8 final editionferrari electric car pricingtyromer tire recyclingbattery supply chains
- D3 Get Out of China, ASAP! - Akio Toyoda Sees Slipping Shareholder Support - Chinese OEMs Call for EU Import Tariffs - China Building LFP Supply Chain in Morocco - New BMW X3 Goes Hybrid Only - Land Rover Freelander Becomes China-Only Brand - To Hell with Emissions Fines, Wrangler V8 Comes Back - Ferrari EV To Cost €500,000 - Tyromer Can Recycle Any Tire
"...missions fines. Jeep is bringing back the V eight Wrangler for another year. Rated at fourteen miles to the ..."
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Detroit's automakers should get out of China asap. That's according to Wall Street
Bank of America analyst John Murphy. He says the price war there, the
surge in Chinese EVY automakers, and other factors mean that GM, Ford and Stallantis will struggle to make a profit. Murphy says they'd be better off concentrating
on areas where they can make money and invest that money into electric vehicles.
China used to be GM's largest market. It sold more vehicles and made more
profit than anywhere else, but not anymore. GM's sales in China have plummeted
and had actually lost over one hundred million dollars there in the first quarter.
Ford lost six hundred million dollars in China last year and Stillant has only sold sixty nine thousand vehicles in twenty twenty three. But it's unlikely that the Detroit
will abandon China anytime soon. GM says it's an important part of its growth
strategy. Stalantis is using Leap Motor as the core of its EVY offensive.
Ford is likely to leverage its relationship with Changan for lower costs, and they're all using China as a major export hub. Toyota chairman Akiyo Toyota easily won
reelection from shareholders, but he's losing support. In twenty twenty two, ninety
six percent of shareholders supported his election as chairman. Last year that dropped to
eighty five percent, and this year it was only seventy two percent. While
any politician would call seventy two percent approval a landslide, it's shockingly low for any Japanese chairman, and especially one named Toyota, who's the grandson of the company's founder. Analysts say it's foreign investors that are unhappy with Achio's leadership,
and some of those investors recommended a against re electing Akio due to governance concerns and vehicle certification testing scandals in Japan. Not surprisingly, Chinese automakers are not
happy about the EU slapping tariffs on their evs made in China, and now state media reports out of China say that Chinese OEMs are urging the government to retaliate. They want higher tariffs on imported European vehicles with larger gasoline engines.
Last month, the Global Times reported that China was considering a twenty five percent tariffs on vehicles with engines two and a half leaders are larger, which would be up from fifteen percent. Last year, European automakers shipped one hundred and
ninety six thousand vehicles with engines two and a half leaders are larger from the EU to China, and that was up from eleven percent from twenty twenty two.
But through the first months of this year, shipments of the same vehicles have dropped twelve percent, and China is all already developing workarounds to any European tariffs. In Morocco, it's building a supply chain for lithium iron phosphate batteries
where there's an abundance of phosphate. Europe doesn't currently have any LFP supply chain.
Morocco also has free trade agreements with Europe and the US, so that supply chain could easily support those markets, and Chinese automakers already have a big cost advantage. Bloomberg New Energy Finance says Chinese battery companies can make LFP batteries
for half the cost of the global average, just like the BMW three series sedan, the X three is going hybrid only. Both the two leaders gas
and diesel engines and the three leaders Straight six now feature forty eight volt technology.
That six cylinder in the X three fifty sends nearly four hundred horse power to all four wheels, helping it go from zero to one hundred kilometers an hour in four point six seconds. There's also a plug in hybrid version that
uses the gas two liter engine, and when combined with an electric motor, it makes nearly three hundred horse power. Its roughly twenty kilowoate hour battery pack
returns a WLTP range of about eighty to ninety kilometers or fifty to fifty five miles. Styling is another big update for the new X three, which hadn't
seen a major update since twenty seventeen, and it gets BMW's latest operating in infotainment systems that's highlighted by large digital displays for the driver and in the center of the dash. The model will be made in the US in South Africa
and sales start kicking off in the fourth quarter of this year. Eventually,
there will be a new all electric IX three, but it will be built on BMW's New Class platform, so it's completely different from IC based models.
Those new Class evs are scheduled to start production sometime next year, which we think will be the new IX three, and it will likely have some styling inspiration from the new Class X concept. The land Rover Freelander is being revived
as an electric only brand in China. The Freelander SUV was built between nineteen
ninety seven and twenty fifteen and was succeeded by the Discovery Sport, but Jaguar land Rover and its joint venture partner in China, Cherry, are reviving Freelander to create a lineup of electric vehicles based on Cherry's EV architecture. The models
will be produced at the joint venture's existing plant in China. At first,
the EV's will be sold in China, but they'll roll out to other global marks. It's in the future to hell with emissions fines. Jeep is bringing
back the V eight Wrangler for another year. Rated at fourteen miles to the
gallon combined, the Wrangler three ninety two, the quickest and most powerful Wrangler ever made, will get a second model year thanks to quote popular demand, but it's only bringing back the final edition, which has a number of upgrades and a hefty price tag and is probably the reason it's bringing it back.
The twenty twenty four final edition had a starting price over one hundred grand, so the twenty twenty five models should be about the same, which probably also makes it the most expensive production Wrangler ever made. And speaking of hefty price
tags, Reuter's reports that Ferrari will charge at least five hundred thousand euros for its first electric car that's gonna launch late next year. The average Ferrari price
in the first quarter of this year was about three three hundred and fifty thousand euros, but even with that price gap, it expects a big bump in sales from less than fourteen thousand last year up to about twenty thousand. The
electric Ferrari will be built in a new building dedicated to the model at its factory in Marinello. A Canadian company called Tiremer has figured out a way of
recycling tires that doesn't use any chemicals or additives. Instead, it devulcanizes use
tires and turns them into a new rubber compound that can be used to make new tires. And this isn't some idea that needs to be developed. It's
already in production with factories in Canada in the Netherlands which can recycle one thousand kilograms an hour. Plants in the US and India are also being built.
The recycled rubber can be used to make a variety of products as well, including conveyor belts and shoe soles. Seventy five percent of all rubber comes from
Asia, and tiremers said as its process can provide supply chain stability, lower costs and slash Co two Emissions is currently looking for other companies that want to license its technology. But that brings us to the end of today's show.
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