AD #3902 - EU and China Agree to End EV Tariff Dispute; VW Bringing Hybrids to U.S. Market; Dealers Want to Ease U.S. Emission Rules

Speaker 1: This is Outoline Daily, the show dedicated to enthusiasts of the global automotive industry. Europe and China have agreed to

end their EV tariff dispute. According to China's Ministry of Commerce,

Chinese automakers have pledged to sell evs imported to Europe above a minimum price, and both sides are now quote negotiating on a flexible price commitment plan. They're trying to

reach a deal before the tariffs are finalized at the end of October. But back in June, the EU raised

tariffs on Chinese made EV's by up to thirty eight percent after its investigation concluded that the EV's benefited from unfair subsidies. But now it looks like they can avoid

those fees as long as the vehicle has a higher price.

No word what happens to a vehicle price below the minimum, but this should help smooth concerns from European countries and automakers that were worried about so retaliation from China. US

dealers say unless emission rules are relaxed, evs are going to start piling up on their lots. IC prices will

go up, customers will have to work harder to find the model that they actually want, and people will just hold on to their older, less fuel efficient vehicles. So

now they're calling on the government to help. More than

five thousand US dealers have already sent letters to President Biden, but now they're reaching out to state and federal officials urging them to ease emission regulations as well as EV sales requirements.

Speaker 2: They say the rules are quote.

Speaker 1: Out of touch with the state of EV technology, charging infrastructure, and most of all, the American consumer. Collectively, dealers have

invested billions in EV training, equipment, and inventory, but they're worried what the slowdown and EV growth will do to their business, which has also cost automakers and some pers to significantly slash their EV production and sales targets. Hybrid

sales are growing in most of the world, including the US, but VW hasn't offered hybrids in the US since twenty sixteen, so the head of VW North America is trying to change that. Pablo DC told Automotive News that he's been

fighting to get more hybrids and has been able to get some models approved. He didn't say which ones, but

higher volume models would make the most sense like the Tigwan and Atlas, and Volkswagen needs those models asap, so its lineup is more in tune with market conditions. And

one advantage that VW has is it already offers hybrids and plug in hybrid models in other parts of the world, so it has the potential to make the move quickly.

Jeep is also considering adding more traditional hybrids to its lineup in the US, it already offers several plug in hybrids, with demands slowing for pebs and also b evs, Jeep's VP of Global Product Planning says it's looking into adding hybrids because they're not as costly, but he did not say when they could reach the market. In other Jeep news,

the company just launched the all electric version of the Avenger in Japan. The model is also offered in Europe

with IC, MILD and plug in hybrid variants, but for now it will only be sold as a b EV in Japan, which is a bit of a gamble. Last year,

only forty four thousand evs were sold in the country, accounting for just one point six percent of the market. Meanwhile,

hybrids and peeves account for more than half of sales.

And like most foreign brands in Japan, sales are relatively small for Jeep. Last year, it sold around eleven five

hundred vehicles, which was up seventeen percent, but this year its sales have tumbled twenty three percent to just over six thousand and units through August.

Speaker 3: Hi, I'm Don Hatfield from Treppicing Control Systems, and I'm presenting the wireless BEMS solution from Intrepid Control Systems. Come

and see us in this demo at Booth twelve oh one at the Battery Show, and also analog devices will be there as well. Be happy to talk to you

and help you with your solution.

Speaker 1: Car sales in the US are expected to decline this month.

Analysts are estimating that automakers will sell between one point one six and one point one eight million vehicles in September, which would be a decline of eleven to thirteen percent from a year ago. Part of the reason for the

drop is the difference in selling days. There were three

fewer selling days in September compared to a year ago, and analysts are forecasting third quarter sales to come in around three point nine million units, down two percent from last year. High transaction prices are also part of the

reason for the drop. JD Power estimates the average new

vehicle costs more than forty four thousand dollars this month, and while that is down three percent from last year, it's still higher than pre pandemic levels, and analysts don't expect to jump in sales for the rest of the year.

Even with the Federal Reserve cutting interest rates recently, they say it will take time for the cuts to impact auto loans. A Chinese joint venture EV startup is getting

the chance to see if it can survive on its own. Avatar,

a team up between Chang'an Huawei and CATL, is planning to go public. The move would allow it to continue

to develop vehicles independently, as well as collaborate with new strategic partners. Through August, Avatar has sold more than thirty

six thousand units, which is not a lot, but that's mostly from one model and it only recently added a second, Plus going public could give it a large cash and fusion to expand more or make additional investments. Last month,

that poured one point six billion dollars into the automotive division of tech giant Huawei to make sure it always has access to Huawei's latest technology, and reports say it's going to double that investment again. BYD is bringing the Shark,

it's pickup truck that plugs in to new markets. The

PHAV truck will be sold in Panama through two dealers that BYD operates in the area.

Speaker 2: It's already on sale.

Speaker 1: In Mexico and should go to other Central American countries as well. Kia is getting ready to ramp up production

of more affordable evs. It just finished converting one of

its plans in South Korea that made ice vehicles into a dedicated EV manufacturing facility, which is the first in the Hundi group.

Speaker 2: The site will make the.

Speaker 1: Kia EV three and EV four and will have the capacity to make one hundred and fifty thousand units a year.

The EV three has already gone on sale in Korea with a starting price just over thirty thousand dollars, and it's sold just over four thousand units in its first full month. The model is also expected to launch in

the US before the end of the year with a starting price around thirty five thousand dollars, but with production in Korea, the EV three won't qualify for the full tax credit at purchase in the US, so we suspect that Kiya will push leasing pretty hard. And speaking of

EV manufacturing in the Hundai Group, it's one step closer to making evs in the US. A ceiling company recently

became the eighteenth supplier to invest in the group's new plant in Georgia, which could open as early as next month.

The first model to roll down its lines will be the Honda Ionic five.

Speaker 2: That wraps up today's show.

Speaker 1: Thanks for watching, and I hope that you have a great weekend.

Speaker 4: Auto Line Daily is brought to you by Bridgestone Solutions for your Journey, Intrepid Control Systems, over the Air, Engineering, Boost your Game, MEDC where Michigan businesses are powering the future of mobility, and by Tagent Automotive Technologies the formula for better mobility.

Speaker 5: Knowing that a little rain won't slow down your day, that's what really matters. Bridgestone to runs a qui attract tires,

confident control in wet conditions.

Speaker 6: 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 environments.

Speaker 7: There's nothing wrong with heavy metal, Hey light enough, but with world class composite material taging automotive technologies makes vehicles lighter, safer, and more eco friendly.

Speaker 4: Wards is the industry leader for news data and analysis.

That's why companies across the globe subscribe to our premium service.

Maybe even your own log in for subscriber access. Now

check your company's intranet for details and rely on wardzauto dot com to keep you informed.

AD #3902 - EU and China Agree to End EV Tariff Dispute; VW Bringing Hybrids to U.S. Market; Dealers Want to Ease U.S. Emission Rules

Dodge Avenger

Ford Fusion

About this episode

Original notes