The episode covers significant challenges in the global automotive market, highlighting the US Federal Reserve's interest rate cut that benefits American car buyers and dealers. In contrast, European car sales have plunged, with EV sales dropping 44%, prompting calls for emission target relief. Foreign automakers face difficulties in China, with plant closures and market share losses signaling a major shakeout. The show also discusses new partnerships in autonomous vehicles, innovations in fuel cell technology, and recalls affecting Volkswagen's electric models. Upcoming contract negotiations and industry insights from notable executives add depth to the discussion.
Topics:us interest rate cuteuropean car sales declineev market dropemission target reliefforeign automakers in chinaautonomous vehicle partnershipsfuel cell technologyvolkswagen recallauto industry labor negotiationsmarket shakeout in china
- U.S. Rate Cut Could Accelerate Car Sales - EU Sales Fall 18%, EVs Plummet 44% - ACEA Calls for Immediate Emission Relief - Stellantis Fails to Sell China Plant Again - VW Closes China Plant - Waymo and Hyundai Team Up on AVs - ZF Turbocharges Fuel Cells, Sorta - ZF Supplying Ford EV Drives for Big Rigs - Chinese EV Pickup Truck Headed to Europe - VW Suspends ID.4 Production in the U.S.
"...ughly in between the size of an F one fifty and a Ranger and will have a combined three hundred and fifty ..."
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Speaker 1: This is Autoligned Daily, the show dedicated to enthusiasts of the global automotive industry. We start out today's report with
good news for the American market. The US Federal Reserve
cut its prime interest rate by half a percentage point, and automakers, car dealers, and car buyers are rejoicing. This
is going to make buying a new car more affordable for more consumers. It's also going to help those with
lower credit scores qualify for a loan, and will make it cheaper for car dealers to floor plan their inventory.
The new prime rate is now just under five percent, and many economists expect the Fed to follow up with further rate cuts if the inflation rate remains stable. Meanwhile,
in the EU, things are going from bad to worse.
New car registrations dropped significantly last month, falling more than eighteen percent. Sales were down for almost every automaker and
in almost every country, selling a bit over six hundred and forty three thousand vehicles, and when you include the Scandinavian countries and the UK, total sales came to almost seven hundred and fifty six thousand units, down sixteen and a half percent. EVS fell an alarming forty four percent.
Their market share is now down to fourteen point four percent compared to twenty one percent a year ago. Peebs
fell by more than twenty two percent, and for some brands it was a disaster. Fiat was down almost fifty percent,
Tesla was down forty three percent. The only brands that
saw sales go up were Volvo, Lexus and Scota, and sales of hybrids continue to make gains, up six point six percent. Not surprisingly, the ACA, which represents Europe's automakers,
is calling for urgent action from governments across the continent.
It's calling for an immediate relief from CO two target slated for twenty twenty five. With EV sales plunging, automakers
will not meet those emission targets and face billions of euros in fines. It says the law's inability to adjust
to real world developments is going to damage the industry. Now,
let's move over to China, where foreign automakers are stuck in a downward spiral they can't seem to get out of.
Stealantis can't find anyone to buy its empty assembly plant in southern China. Bloomberg reports that This is the third
time Stalantis has tried to sell the plant at auction but can't find any buyers despite only asking one hundred and seventy four million dollars. The original investment in the
plant was around seven hundred million. It was built in
twenty twelve with the capacity to make one hundred and forty four thousand vehicles and two hundred and twenty thousand engines a year. But in China these days, no one
is interested in a plant tool to make internal combustion engines, and Volkswagen is getting ready to close the first or possibly several assembly plants in China. That plant in Nyanjing
is a joint venture facility with SEIC and is capable of making three hundred and sixty thousand cars a year.
VW is also conducting a strategic review of the Scota brand, suggesting it could exit the Chinese market. We think General
Motors will also announce at least one plant closing in China before long, as foreign automakers are facing up to the reality that they're never going to regain the market share that they've lost, and this could be the beginning of the great shakeout that everyone's been anticipating, but one thing's for sure. As foreign automakers close plants and possibly
drop brands, is only going to make the Chinese auto industry even stronger. There's too much over capacity in China,
which is a key reason for the price war there.
As foreigners cut back, the situation is only going to improve.
Speaker 2: So when we did our research for the talent that we need for this program, Michigan was really the top of the list. In order to be successful in this space,
you really have to have the right people, the right mindsets, the right environment.
Speaker 1: Weimo has found another partner for its self driving vehicles.
This time it's Hyundai. According to Korean newspaper Electronic Times,
the two companies have met more than three times to discuss equipping Ionic fives with Weimo's six gen autonomous system.
They would replace the vehicles Weimo is developing with Chinese brand Zeker, which is owned by Jeli. But in a
statement to Reuter's Weimo disputed the report and says it's working to validate its technology into Zeker vehicles and will introduce them into its fleet when they're ready. Zeeker also
said there's been no change in its partnership with Weimo and Hyundai reiterated its plan to sell its own self driving platform to other companies, but by teaming up with Hyundai, the vehicles wouldn't be subject to new tariffs the US has imposed on Chinese made vehicles. The supplier ZF is
using its knowledge of turbochargers to improve fuel cells. Last year,
it unveiled the fuel cell air compressor, which uses turbotechnology to deliver air more efficiently to the fuel cell stack, and now it's showing the hydrogen recirculation blower, which also uses turbotech and is meant to be combined with the compressor to improve the efficiency of fuel cells even more.
The blower features an electric motor that can spin up to one hundred thousand rpm to separate water and air from the unused hydrogen on the anode side of the stack and then send that hydrogen back into the system.
ZF didn't say what kind of improvements it could make, but it says it will also extend the life of a fuel cell. Speaking of ZF, it revealed that it's
going to supply Ford with electric drives for heavy duty commercial trucks that Ford sells mostly in Europe. The new
F line that was first shown off late last year, will be available with ZF's C Tracks two dual drive unit, which takes the place of a conventional transmission, so it can be built on the same line as an IC truck, and the supplier will also provide drive variants for upcoming models from Ford.
Speaker 3: And I have to admit I.
Speaker 1: Didn't know that Ford sold trucks like this in Europe, but it has a long history and its designing and developing the trucks itself. The new F line will likely
be built by Ford autoson and Turkey, where it also builds the larger F Max, which was the design inspiration for this new truck. The Maxis brand, which falls under
the SEIC umbrella, plans on exploding into Europe next year, and it could start with a pickup truck. It wants
to have ten models by the end of twenty twenty five, and showed off the E tear On nine, which is the same as a model it's going to sell in China called the Interstellar X. It's roughly in between the
size of an F one fifty and a Ranger and will have a combined three hundred and fifty four kilowatts or about four hundred and seventy five horsepower from an electric motor on the front and rear axle. No word
on any of the other models Maxis plans on offering in Europe yet. Volkswagen is recalling nearly one hundred thousand,
eight four electric models in the US over faulty door handles, and it doesn't have a fix for the problem yet, so the company is suspending production of the model at its plant in Chattanooga, Tennessee. VW will furlough two hundred
workers at the plant and issued a stop sale as well.
Water can seep into the door handles and cause a glitch with the circuit board that can open the door even while in motion. VW says it hopes to have
a fix by early next year, which seems like an awfully long time, but the ID four is a slow seller, averaging less than two thousand cars a month in the second quarter, so it might not be a huge impact. However,
there could be something else going on here too, with VW's contract negotiations with the UAW kicking off this week.
Halting production and laying off workers gives it a good bargaining chip with the union, and we've got a great Autoline after Hours coming up later today with Bob Lutz, one of the most colorful and outspoken auto executives in the history of the industry. One thing we want to
do is get him to rate the performance of GM's Mary, Bara Fords, Jim Farley, and Carlos Tavares at Stalantis. Jack
Keebler from Keebler Auto will also be on the show, So join John and Gary for what should be a memorable time. But that's a wrap for this show. I
hope to see you later.
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Speaker 3: Electric vehicle Forget the political noise.
Speaker 6: Evs mean good American jobs. Tens of thousands of manufacturing
jobs right here right now in Michigan and more on the way with billions in new investments. We want those
jobs in China instead, we don't. We're the American EV
Jobs Alliance. We say electric vehicles are a big part
of the future, and we want those jobs in America.
So remember when politicians bash EV America loses paid for by the American EV Jobs Alliance.
Speaker 5: Knowing that a.
Speaker 1: Little rain won't slow down your day, That's what really matters.
Speaker 5: Brichtone to runs a quiet tract, hires confident control in wet conditions,
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