AD #3958 - Merger Shock Honda and Nissan To Tie the Knot; CATL Goes All-In on Battery Swapping; Porsche To Delay EV Models

Speaker 1: This is aut Aligned Daily, the show dedicated to enthusiasts of the global automotive industry. In a sign of the

seismic shift that's going on in the auto industry, Honda and Nissan are considering merging together or at least creating some form of a holding company. Nissan, as we've been

reporting here, is in deep trouble. Its sales have plummeted

in China and are down sharply in the US market.

In the last quarter, its net profit margin was only zero point three percent, and even though Honda has seen its sales drop in China too, on an overall basis, the company is in decent shape. Earlier this year, the

two companies announced they would collaborate to develop electric cars and software. But as Nissan's situation broke down, somebody made

a decision that it should really merge with Honda, and we think that decision was made by METI, japan Ministry of International Trade and Industry, which is trying to protect its auto industry. As Chinese auto makers elbow Japanese automakers

aside in markets like Southeast Asia and Latin America, the Japanese auto industry is in danger of losing millions of vehicles and sales. Another thing that probably triggered this merger

talk is that Fox Khan, the Taiwanese contract manufacturer, said it was interested in buying Nissan. Fox Khon has wanted

to get into the electric car business for years, and even developed its own EV platform software stack and showed off six EV concept cars, But it's unlikely that METI would want a Taiwanese contract manufacturer to buy one of the crown jewels of the Japanese auto industry. That's probably

part of the reason we're suddenly hearing about a merger between Honda and Nissan. And by the way, Renault, which

owns fifteen percent of Nissan, says that on principle it's in favor of the merger. But of course it would

say that because if Nissan goes down the drain, Renault stockholdings in Nissan would be worthless. But saying it's in

favor on principle is not exactly a ringing endorsement, and no doubt Renault will want it stick its nose into any negotiations between Honda and Nissan. Swapping out batteries for

evs is a quick way to solve range anxiety and worries about charging time. Neo was the first automaker to

pursue swapping in a serious way, and it's partnered with Chang'an, Jeli, Jac Cherry and Moore to set standards and develop a network of stations well now, CTL, the world's largest battery company, unveiled two standardized battery packs designed for swapping and says it wants to build thirty thousand swapping stations in China.

The batteries are officially designated Choco SEB. Choco refers to

chocolate because the battery cases have a chocolate color to them.

SEB stands for Swapping Electric blocks. There are both NMC

and LFP versions that range in size from forty two to seventy kilowa hours, and you lease them for anywhere from fifty to eighty two dollars a month. The ideas

you lease the smaller one for every day commuting, then get a bigger one for longer trips. But even though

we refer to these as bigger and smaller, the actual units themselves are the same size. CTL says that next year,

ten EV models from GAC, Baic Wooling and FAW will use battery swapping. So far, these are for small and

mid size cars, specifically AO A and B class, but CTL predicts that by twenty thirty one third of EV's in China will use SWA.

Speaker 2: There's nothing wrong with heavy metal hy light enough, but with world class composite material taging automotive technologies makes vehicles lighter, safer, and more eco friendly.

Speaker 1: Okay, going back to that possible Honda Nissan merger, Honda has a lot of one thing Nissan needs more of, especially in the US, and that's hybrids. And Honda is

about to launch a whole new generation of electrified vehicles that includes a new mid sized platform which is more rigid, about ninety kilograms or roughly two hundred pounds lighter, and has sixty percent common parts between models, like the engine bay in rear floor. Those models get the newest version

of Honda's two motor hybrid system that can drive on battery power only a mode where the engine generates electricity for the battery, which then powers the mode, or the engine can drive the front wheels directly. That sounds a

lot like the drive modes of the original Chevy volt, but Honda hasn't detailed in what situations the engine will power the wheels directly in its new system. However, it

did reveal all new one and a half and two liter engines that will help improve fuel economy by about ten percent compared to its first Gen two motor hybrid.

To get the most out of those engines, it's introducing a new Honda S plus shift function that will be featured on all future models that use its new hybrid system, starting with the new Prelude that goes on sale next year.

It says the function controls engine RPM during acceleration and deceleration for more direct response in sharper gearshifting. Some models

will also be available with all wheel drive thanks to a rear drive unit which is completely electric and has no machaireanical connection to the engine. And speaking of Honda,

it looks like it's dropping GM as a fuel cell development partner. Honda says it will independently develop its next

gen fuel cell system and is converting an existing powertrain plant in Japan to make it. Production is expected to

start in twenty twenty eight, and Honda hopes to make about thirty thousand units a year. The Japanese government will

also provide up to ninety five million dollars in subsidies for the project. Toyota will get some government support for

fuel cells as well. It received an application to help

establish a domestic supply chain in Japan for fuel cells and water electrolysis systems. Toyota especially sees a market for

commercial vehicles, including in Europe and North America, where it expects to supply about seventy five thousand units by the end of the decade. US producers of graphite y material

and EV batteries want huge tariffs on Chinese graphight. We're

talking up to nine hundred and twenty percent. They accused

the Chinese of benefiting from massive state subsidies that allow them to artificially lower the price. As of last year,

China controlled ninety two percent of the global market for graphight used in batteries, and of the ninety two thousand tons of graphite that were imported to the US last year, seventy thousand tons came from China. However, those tariffs would

double the cost of making a battery sell. Another brand

under the Volkswagen umbrella wants to scale back its EV plans.

Earlier this week, Lamborghini said it's delaying the launch of its first EV to twenty twenty nine, a year later than planned, and now Porsche is looking into revising its EV plan. Originally they were to account for eighty percent

of sale by twenty thirty, but it's considering delaying the all electric Cayenne, which was supposed to launch in twenty twenty six and will extend the life of the IC version.

A large electric only suv positioned above the Cayenne was planned for twenty twenty seven, but now it could also offer a combustion powertrain, and it's running into issues electrifying the Boxter and Cayman because of battery issues. Tesla is

clashing with German union ig Mattal. The automaker is accusing

the union of trying to oust the head of the works council at its Berlin factory. Ig Mattal filed a

motion with the local court to remove the leader, who is not a member of the union, from the council.

The union claims working conditions at the plant are subpar, and it also accuses Tesla of trying to restrict it, which would violate German labor law, but Tesla deny those accusations, and in other Tesla production news, the plant manager at its Shanghai plant has left the company and no reason was given for his departure. He also spent time in

the US to help with its production issues at Tesla's plants in California and Texas in twenty twenty two, and he previously worked at GM and Forda, China before he joined Tesla in twenty eighteen. And a quick reminder with

Christmas in New Year's coming up, this is our last week of shows before twenty twenty five. But that's a

wrap for today and thanks for tuning in.

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AD #3958 - Merger Shock Honda and Nissan To Tie the Knot; CATL Goes All-In on Battery Swapping; Porsche To Delay EV Models

Chevrolet Volt

Honda Prelude

Porsche Cayenne

Porsche Cayman

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