AD #4099 - Japan Auto Stocks Jump with New U.S. Trade Deal; What Does Stock Market Know About Tesla?; GM Turns Sales Around in China
Autoline Daily
AD #4099 - Japan Auto Stocks Jump with New U.S. Trade Deal; What Does Stock Market Know About Tesla?; GM Turns Sales Around in China
Annotations will appear as you listen
0:00
9:57
LIVE
Speaker 1: This is Ouderline Daily, the show dedicated to enthusiasts of the global automotive industry. President Trump announced he finished a
trade deal with Japan that will impose fifteen percent tariffs on imports. That's well below the twenty seven point five
percent that Trump put in place several months ago. The
stock prices of Japanese automakers jumped on the news. Toyota
was up ten percent, and even Nissan, which is in serious financial trouble, saw its stock go up more than nine percent. What was really surprising was that the stock
prices of European automakers also rose on the news. For
one thing, it signaled that Trump is ready to close deals before the month is over. For another, it suggested
that Europe would also settle on a fifteen percent tariff.
That is painful, but it's not the industry killing threat posed by the higher tariffs that are now in place.
But do you know who hates the Japan trade ds GM Ford in Stilantis. They're saying, wait a minute, why
are we giving Japan a fifteen percent tariff when Canada and Mexico face a twenty five percent tariff. You're just
incentivizing imported Japanese cars with zero or little US content over vehicles imported from Canada and Mexico with a lot of US content. The American Automotive Policy Council, which represents
the Detroit Three, says the trade deal with Japan is not good for the US auto industry or American workers.
President Trump is also pressuring Japan to open up its market to American made cars, but the Japanese say American cars are not well suited for the Japanese market. They
claim that American cars are too big, are not fuel efficient, and have the steering wheel on the wrong side. But
the truth of the matter is Japan is very effective at keeping almost all imports out of its market, not just American cars. For example, Hyundai, which does a terrific
job selling cars all over the world, only sold four hundred and ninety five cars in Japan last year. In all,
imported cars including Mercedes, Audi, Volkswagen, BMW, Mini, Volvo, and Jeep accounted for less than four percent market share, which suggests that Japan actually has the most restricted market of any major country. All the news coming out of Tesla
these days is bad, But what does the stock market know that we don't Here's what I mean. Tesla sales
in California drop for a seventh straight quarter. The California
New Car Dealers Association says Tesla registered just over forty one thousand vehicles in the second quarter, which was down twenty one percent globally. Its deliveries dropped thirteen point five
percent in the second quarter. In fact, the analyst community
expects Tesla to post its biggest quarterly drop in revenue since twenty twelve, and yet Teskless stock is up six percent over the last five days. That usually doesn't happen
when a bunch of bad news is about to break, and so we wonder does the stock market know something that we don't.
Speaker 2: Developing today's vehicles, issues can happen in an instant. What
good is knowing your problems without the data to solve them.
Meet Wireless Neovia Cloud, your secure off the shelf solution, empowering real time collaboration for quick resolution. With wireless neova Cloud,
your team can prevent issues before they can escalate. Driver
communication data and remote diagnostics to analyze and resolve your problems using OTA, allowing your executive to oversight throughout the process.
Wireless nearby cloud your vehicle updates solution in production and on the road intrepid control systems driven by your dataime.
Speaker 1: German automaker OPAL, which is part of the Stalantis Group, is jumping into the performance EV segment with a rally inspired version of the Mocha small crossover called the Mocha GSE.
The car produces two hundred and eighty horse power and two hundred and fifty four pound feet of torque, which helps it move from zero to one hundred kilometers an hour in five point nine seconds and hit a top speed of two hundred kilometers an hour, which makes it the fastest all electric EV in Opal's lineup. The car
features a fifty four kilowade hour lithium ion battery pack, but OPL didn't reveal its range Compared to the base Mocha.
The GS features a multiplate limited slip differential, and it's chassis as specially designed axles and double hydraulic shock absorbers, and the steering chassis and brakes have been optimized for rally driving. Opel says it will reveal pricing and availability soon.
That new Buick EREV sedan for China that we showed you last week just got a lot more interesting. According
to Carnus China, it's built on a new nine hundred volt architecture that can support beev's PHS or e revs, as well as front wheel drive, rear wheel drive or all wheel drive, and van, suv or sedan body styles.
The Electra L seven Saedan is launching with an e REV setup. The pairs a one and a half liter
gas engine with two electric motors, one each on the front rear axles that combine for just over five hundred horse power. If you met your foot to the floor,
the car will do zero to one hundred kilometers an hour in five point nine seconds. And that's not as
only impressive performance, the new platform provides six C charging capability, meaning it can add three hundred and fifty kilometers of range in ten minutes, and since the L seven has a roughly forty kilo one hour LFP battery pack that provides just over three hundred kilometers or about one hundred and eighty five miles of range, it's possible the battery could fully recharge in about the same time it takes to fill up a tank of gas. But obviously the
real benefit of an e REV is that you get to combine both systems together, and the L seven will have a total range of fourteen hundred kilometers or nearly eight hundred and seventy miles at least based on China's test cycle, which is easier than the EPA or WLTP.
Huh and I need to call ourselves out here a little bit. Last week we said the model would cost
about thirty five thousand bucks, but CARNWS China reports that the starting price will be closer to forty two thousand.
As we reported in yesterday's show, tariffs had a significant impact on GM's bottom line in the second quarter, but the company claims it will start figuring out how to overcome those tariffs and that future quarters will be better.
One way it's doing that is by developing and making battery cells in the US that will include both LFP, which is supposed to hit the market in twenty twenty seven and could lower the starting price of the Silverado ev by around six thousand bucks, as well as LMR batteries that are supposed to hit in twenty twenty eight.
LMR stands for lithium manganese rich and they use a lot less nickel and cobalt, but still have good energy density and charging capability. GM originally said LMR could provide
cost savings similar to LFP, but now CEO Mary Barr says the potential savings may be even greater than LFP at today's metal prices, possibly even thousands of dollars. So
with its EV sales on the rise, that's why she thinks LMR could be a game changer for GM. In
more GM news, its efforts to install Supercrews on more vehicles is really paying off. At the end of June,
over half a million vehicles on the road in US and Canada are now available with the feature, which is a one hundred percent increase over the last year. However,
getting customers to switch on Supercrews is a different story.
There were over two hundred thousand monthly users in the second quarter, but that will start to generate a nice chunk of change for GM after the three year trial that is offered to most customers. There's a monthly or
yearly subscription or an outright fee of twenty five hundred to three thousand dollars. And speaking of GM, is it
starting to turn things around in China? Sure looks that way.
Sales in the first half hit four hundred and forty seven thousand cars, up almost twenty percent, and it reported equity income of one hundred and twenty five million dollars.
That's not a big number, but keep in mind that at this time last year it lost two hundred and eleven million, So while it may not be a big number, it is a big improvement and this could be a sign that the downward slide of foreign automakers in China is coming to an end. They're beginning to fight back
with competitive electric vehicles that are equipped with the latest Chinese technology and our price to sell. We think Volkswagen, Audi, Toyota, Honda, Mercedes,
and BMW are companies that are getting ready to compete head to head with the best Chinese automakers in their home market. But that brings us to the end of
today's show. Thanks for tuning in. Autoline Daily is brought
to you by Intrepid Control Systems over the year engineering boost your game and by
About this episode
The discussion covers the recent U.S.-Japan trade deal reducing tariffs on Japanese auto imports, which boosted Japanese and European automaker stocks but drew criticism from U.S. manufacturers like GM and Ford. Tesla's declining sales contrast with a rising stock price, raising questions about market expectations. Opel introduces a rally-inspired electric crossover, while Buick unveils a high-performance extended-range EV for China with rapid charging and impressive range. GM is tackling tariffs by developing new battery tech and expanding Supercrew features, while showing signs of recovery in China amid growing competition from local EV makers.
Original notes
- Japan Auto Stocks Jump with New U.S. Trade Deal - Detroit 3 Oppose Japan Trade Deal - Trump Pressures Japan To Boost U.S. Car Imports - Does Market Know Something We Don’t About Tesla? - Opel Introduces High-Performance Mokka EV - Buick Shares More Electra L7 EREV Specs - GM LMR Batteries Could Provide Significant Savings - Super Cruise Now Installed In 500K GM Vehicles - GM Turns Sales Around in China
Autoline Daily
Autoline
0:00
9:57