AD #3918 - Tesla FSD Delayed in China; Rivian and Bosch Sue Each Other; China Wants Own Auto-Grade Chip Supply Chain

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.

Speaker 3: Rich Don Weather Peak Tires with.

Speaker 2: The seventy thousand mile womened warranty.

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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AD #3918 - Tesla FSD Delayed in China; Rivian and Bosch Sue Each Other; China Wants Own Auto-Grade Chip Supply Chain

Dacia Sandero

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