China is aggressively working to reduce its dependence on foreign automotive semiconductor chips by developing domestic chip design and manufacturing, with government-backed standards for automotive-grade chips. Tesla faces delays in launching Full Self-Driving (FSD) in China amid regulatory scrutiny, though its production there remains strong with a refreshed Model Y debuting soon. California police find Teslas impractical as squad cars due to size and equipment fit issues. Rivian and Bosch are embroiled in lawsuits over contract disputes, while suppliers like Forvia and Hyundai Mobis announce major partnerships and innovations, including holographic windshield displays.
Topics:china automotive chip supplytesla fsd delay chinatesla model y refreshtesla police car issuesrivian bosch lawsuitautomotive supplier dealsholographic windshield displaycompany car subsidies europeautomotive earnings outlook
- China Wants to Shake U.S. and EU Auto-Grade Chip Dependence - Tesla FSD Delayed in China - Tesla Model Y Juniper Starts Production in China - Tesla Model Y Best Selling Vehicle in EU in September - Teslas Don’t Make Good Cop Cars - Q3 Earnings Start This Week - EU Subsidizes ICE By €45B a Year - Rivian and Bosch Sue Each Other - Forvia Lands Contracts with BYD, Xiaomi - Hyundai Mobis, Zeiss Partner on Full Windshield HUD
"...d units behind the number one vehicle, the Dashia Sandero. Last year, the Why was the top selling model in ..."
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Speaker 1: This is autolined daily, the show dedicated to enthusiasts of the global automotive industry. China's auto industry is deeply worried
that it's too dependent on the United States and Europe for automotive semiconductor chips. It imports ninety percent of them.
On top of that, ninety six percent of the software needed to design the chips is done by American companies, while ninety five percent of the core intellectual property in chip design is held by companies in America and Europe.
So China has a big push to onshore chip design and manufacturing. Many Chinese automakers, including byd Neo, Jipong, Liato, Seic, Geli,
and great Wall, are working to make their own chips, while other Chinese automakers are partnering right up with the chip companies, and the Chinese government just came out with standards for chip reliability and security along with a list of companies that can do chip certification. Automotive grade chips
are made to stronger specs than the chips used in consumer electronics because they have to withstand severe weather and vibration, as well as last as long as the life of a vehicle Speaking of China, is Tesla being punished in China for the US's restrictions on Chinese evs and tech.
Tesla expected to launch supervised FSD in China early next year, which could provide a big boost in earnings, but China Daily reports approval for the system has been slow as regulators want to make sure Tesla is strictly following all laws and regulations. It quoted a sources saying the progress
of the rollout won't likely match the timeline the company had envisioned. There's no word on how long that delay
will be, but it does seem like tension is starting to build, without saying who. China's Ministry of State Security
recently said that a foreign comp gathering data for smart driving research was illegally mapping parts of China. But Tesla's
manufacturing is still going strong in China. It recently produced
its three million vehicle in the country, and now China Media reports that the Refresh Model why often called Juniper, will start rolling down the line in Shanghai tomorrow. It's
expected to come with a front end similar to the Refresh Model three and a new ninety five kilowat hour battery pack, but the reports say Tesla will only make twelve of them a day and the actual on sale date won't be until sometime next year. We think the
company is being super careful to launch the new Why with superb build quality. Tesla's growth has slowed considerably and
many attribute that to an outdated product lineup, so this refresh is very important and Model Why sales are slowing in Europe. They were down a little over three and
a half percent last month to roughly twenty eight thousand, seven hundred units, but even so, that made it the best seller in Europe for September and nearly eight thousand vehicles that had a second place. For the year, Tesla
has sold over one hundred and fifty five thousand model wise in Europe, which puts it in fifth place in about fifty thousand units behind the number one vehicle, the Dashia Sandero. Last year, the Why was the top selling
model in Europe, but it's going to have to pick things up if it wants that title back. Several police
departments in California bought Teslas to comply with zero emission mandates, but they say they don't make good cop cars. Officers
say they're too small, the seats can't accommodate their tactical belts and bulletproof vests, and they're expensive to upfit. One
city bought two Model threes and modified them for one hundred and fifty thousand dollars, but it's only using them for administrative purposes because just one person fits in the rear seat. That means back up is needed for more
than one suspect. The departments did appreciate the Tesla's acceleration
steering at top speed, but the other issues make them quote nearly unusable as squad cars. I did see that
police departments are starting to use the cyber truck, which would likely take care of that size issue, but we're not sure what a cost to upfit.
Speaker 2: Making the life full of memories one road trip at a time, that's what really matters.
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Speaker 1: This is going to be a big week for earnings.
Automakers and suppliers are getting ready to report their third quarter results, and it looks like Wall Street could be expecting some good numbers from the big OEMs. Over the
last week, investors bid up GM stock by two point six percent. Ford went up three point six percent, and
even Stilantis, which has had a horrible year, went up one point six percent. But Tesla is essentially flat, up
only point two percent. So we're investors smart to start
buying before they saw the numbers. We'll have most of
the answers by the end of the week. Company cars
are a big deal in Europe, where it's a big perk for executives. Company cars account for a staggering sixty
percent of all the passenger vehicles sold there. In Europe,
driving back and forth to work is considered a business use, and so company cars are taxed at a much lower rate.
But an environmental consultancy called Environmental Resources Management says Europe is actually subsidizing ice vehicles to the tune of forty five billion euros a year, compared to the fifteen billion euros of subsidies that are offered to people who buy an ev ERM says the tax subsidies for company cars run anywhere from six thousand, eight hundred euros up to twenty one thousand, six hundred euros per vehicle, which it
calls a logical and unacceptable. The UK is the only
country that offers company car subsidies for electrics. Rivian and
Bosh are suing each other. The world's largest automotive supplier
accuses the ev startup of not paying it two hundred and four million dollars in reimbursements after Rivian canceled its electric motor contract in twenty twenty three. Rivian accuses Bosh
of quote reckless failures in its contract and blames the supplier for production issues that led to thirty thousand fewer vehicles being built than planned in twenty twenty two. Rivian
now produces emails voters in house. Boss sued Rivian for
breach of contract back in July, and Rivian countersued the same day for the same thing. A judge has set
the next phase in the lawsuit process for February, and both companies declined to comment on the litigation. But it's
never a good thing when automakers and suppliers end up suing each other. In other supplier news, French supplier for
Via landed big deals with Chinese automakers BYD and Joemy.
For Via will supply BYD's second European factory in Turkey, but for Via didn't say what components it will provide to byd or joem. Its current portfolio include seats, interior parts, lighting,
and electronics. China accounts for a quarter of for VIA's
total revenue, and its stocks shot up ten percent after renounced the new deals. Supplier Hyundai Mobis and German optical
company ZISA partnering to make head up displays that stretch across an entire windshield. Zece was needed to provide a
thin film only slightly thicker than a human hair that's embedded into the glass and allows content to be seen on the windshield, while Hondai Mobis will develop and make pretty much everything else. They say the holographic windshield display
will have almost all of the same functions as a normal screen, and mass production can start as early as twenty twenty seven. If that brings us to the end
of today's show, Thanks for tuning in.
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