AD #3836 - D3 Get Out of China, ASAP!; Ferrari EV To Cost €500,000; Tyromer Can Recycle Any Tire

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

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.

Thanks for making autoline a part of your day. Auto Line Daily is brought

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AD #3836 - D3 Get Out of China, ASAP!; Ferrari EV To Cost €500,000; Tyromer Can Recycle Any Tire

Chevrolet Volt

Land Rover Freelander

Land Rover Discovery Sport

Jeep Wrangler

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