AD #4012 - Trump Tariffs Could Cut Production By 20,000 Units/Day; BMW’s Profits Plunge 37% In 2024; UAW Files Unfair Labor Charges Against

Speaker 1: This is outlined daily the show dedicated to enthusiasts of the global automotive industry. According to his study by SMP global,

within a week of President Trump imposing twenty five percent tariffs on vehicles imported from Canada and Mexico, car and truck production in North America could drop by twenty thousand vehicles a day, and that would translate to nearly four point eight million vehicles a year. However, while the President

threatened to impose those tariffs, they're currently under a one month reprieve until April second. In one scenario, SMP global

gives a thirty percent chance for a quick resolution that would avoid the tariffs, but that reprieve only applies to vehicles that are compliant with the USMCA Free Trade Agreement.

In a second scenario, SMP gives a fifty percent probability for an extended period of turmoil that would last four to five months. It says production of vehicles that are

not come client would be slashed or stopped altogether, And in a third scenario, with a twenty percent probability, is what it calls a tariff winter, where automakers and suppliers would be forced to move production to the US, which would result in suboptimal sourcing. It predicts new car and

truck sales in the US would drop by ten percent, or by about one and a half million vehicles. And

In other tariff news, as we reported yesterday, BMW said it would eat the tariff cost on some of its Mexican made models, and now we have an idea of how much that is. The automaker expects to spend about

a billion euros on tariffs this year, which also includes European taxes on its China made evs. This and a

number of new model ramp ups will have an impact on BMW's financial performance, but it's still forecasting a similar profit before taxes as last year because the company hit its highest investment level ever roughly eighteen billion euros in twenty twenty four. However, having a similar performance is not

really great news for BMW. Sales across the entire group

fell four percent to just over two point four to five million units. That help drag revenue down by nearly

eight and a half percent to roughly one hundred and forty two billion euros. Its ebit came in at eleven

and a half billion, a drop of about thirty eight percent, which was almost the same as its net profit, which hit nearly seven point seven billion euros in twenty twenty four.

I mentioned that BMW is working on a number of new model ramp ups, which include IC hybrid, plug in hybrid b EV, and fuel cells. The first model from

its new class family of evs, the IX three, hits the market later this year and will be followed next year by a sedan that's likely the next Gen three series.

BMW's fuel cell vehicle won't be out until twenty twenty eight, but it will probably probably be a high volume suv like the X five that it's already started testing in and it's jointly developing the drive system with Toyota. And

To handle all these new product launches, the company announced that it promoted its board member in charge of purchasing and supply to take over the role of development. Yoakam

Post will take over from Frank Weber. On June first,

the United Auto Workers filed unfair labor charges against Volkswagen, accusing the automaker of trying to cut jobs. VW is

cutting production at its plant in Tennessee by moving it to a two shift model because of weak ev demand that plant builds the ID four Electric. VW says it's

offering workers a voluntary severance package, retirement options and benefits, but UAW president Sean Fame blasted the buyouts and said that the union quote has notified the Trump administration of Volkswagen's unacceptable anti union, anti world, and anti American conduct.

The UAW and VW are currently negotiating their first contract after the union won its very first election at the Tennessee plant last year.

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Speaker 1: Mercedes revealed the all new CLA, which rides on the automaker's next gen platform. The all electric version will launch first,

followed by a hybrid later this year. The EV will

come in rear wheel drive with a two hundred kilowatt or roughly two hundred and seventy horse power electric motor, or there's an all wheel drive model with two hundred and sixty kilowatts or about three hundred and fifty horse power.

Both feature a two speed transmission and an eighty five kilowatt hour battery pack that provides nearly eight hundred kilometers or almost five hundred miles of range on the WLTP test cycle, and thanks to an eight hundred volt architecture, the new CLA can add up to three hundred and twenty five kilometers or two hundred miles of range in ten minutes of charging. The hybrid version could more accurately

be described as an e REV or extended range electric without an external charging port. It features a one and

a half liter turbocharged four cylinder engine that's paired with forty eight volt mild hybrid tech, as well as an eight speed transmission with an integrated electric motor. That motor

can provide support at any speed and when less than twenty kilowatts or about twenty seven horse power is needed, which would be light loads up to one hundred kilometers an hour about sixty two miles an hour. It can

drive on electric only power. The new CLA is also

the first model to fully run off of mercedes new in house develop operating system, which helps enable over the air updates, the operation of a new AI enhanced infotainment system and level two hands free driving. The commercial division

of Stilantis, called Stilantis Pro One, is going to build and supply Iveco with electric vans for Europe for the next ten years. The two models will be based on

mid and large sized van platforms from Stalantis but rebranded as Ivecos. They'll be built in Italy, Poland and France

and should hit the market next year. We find this

a little interesting because Iveco also has a deal with Hyundai to use its ELCV or Electric Light commercial vehicle platform for a model called the Emovie that's aimed at the European market as well. I'm guessing the vehicles won't

compete against each other, and it looks more like Iveco is turning to major automakers to build its vehicles instead of investing to build them on its own. Tesla is

developing a stripped down version of the model Y in China to compete with lower cost competitors. The goal is

reportedly to chop seven to eleven thousand dollars from the cost of the car, which currently sells in China for a little over thirty six grand. The cost cutting would

come from pulling out content and by simplifying manufacturing. Mass

production could start early next year, and the cheaper version could also be built in the US and Germany, but production could start earlier if the current refresh Y fails to boost sales. And here's a sales stat that caught

our eye. Scota is now the number three car brand

in Europe, only behind Volkswagen and Toyota, its surge past Renault and BMW last year. Scota is owned by the

VW Group, but unlike the VW brand, it's growing strong in the EU, with sales up fourteen percent in twenty twenty four. A key factor for the check manufacturer's success

is its lower priced cars, like the l Rock EV, which sells for about thirty five eight hundred bucks, the same price as its gas equivalent. The EV price war

in China put a dent in the profits of the world's largest ev battery made ctl reported that its revenue fell nearly ten percent last year to just over fifty billion dollars. It's the first time Coatl's revenue has fallen

since it started releasing its financial numbers in twenty fifteen, and while its net profit rose fifteen percent to seven billion dollars, it was the company's slowest pace in six years. Okay,

time for another autoline poll. Automakers are trying to figure

out whether they should use touch screens or buttons and knobs, or a combination of the two. What feedback would you

give to the car companies. One I really don't like

screens and find them awkward to use. Two I prefer

screens because they really unclutter the interior. Three give us

a combination of the two with wiper and turn signal stocks and a radio knob. Four none of the above.

See my opinion below. So let us know what you

think and we'll report the results on Monday. And that

brings us to the end of today's show. Thanks for

tuning in, and I hope that you have a great weekend.

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AD #4012 - Trump Tariffs Could Cut Production By 20,000 Units/Day; BMW’s Profits Plunge 37% In 2024; UAW Files Unfair Labor Charges Against

Tesla Model Y

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