GM and Hyundai are co-developing five vehicles, including compact SUVs, pickups, and an electric commercial van, targeting launches by 2028 with unique brand designs. Despite rising sales, Subaru and Toyota report profit declines largely due to US tariffs, which have cost automakers nearly $12 billion and are expected to impact profits for years. Toyota plans a new plant in Japan, while Honda considers increasing US production shifts. GM is reducing reliance on Chinese rare earth magnets through domestic partnerships. The new Corvette ZR1X boasts 1,250 horsepower and a $207,000 price tag, with deliveries expected by year-end.
- GM and Hyundai To Co-Develop 5 Vehicles - Subaru’s Net Profit Plunges 35% - Toyota’s Net Profit Tumbles 36% - Toyota To Build New Plant in Japan - Honda Considers 3-Shift Schedule in U.S. - Trump’s Tariffs Cost Automakers $12 Billion - Tariffs Cost UAW Members Thousands in Profit Sharing - New MG4 Design Dialed Back to Appeal to Global Buyers - GM Signs New Rare-Earth Supply Deal - New Corvette ZR1X Has $207,000 Price Tag
"... fifty horse power all wheel drive version of the Corvette, we'll start at a little over two hundred and sev..."
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Speaker 1: This is Outoline Daily, the show dedicated to enthusiasts of the global automotive industry. We've got more details on the
partnership between GM and Hyundai, which was first announced about a year ago.
Speaker 2: For the Central and South American market.
Speaker 1: Hyundai is leading development of a compact suv car and pickup truck, while GM is developing a mid size pickup platform.
All of them will have the flexibility to use either an IC or hybrid powertrain. Design and engineering work is
already underway, and these models will start launching in those markets in twenty twenty eight. GM and Hundai will also
launch an electric commercial van in North America, which will be made in the US as early as twenty twenty eight.
Speaker 2: Hyundai will lead development of this vehicle.
Speaker 1: As well, but even though they're sharing the common platforms, the interior and exterior styling.
Speaker 2: Of the vehicles will be unique to each brand.
Speaker 1: They expect to sell more than eight hundred thousand of these co developed vehicles a year once production reaches full scale.
Just like yesterday, we've got more earnings reports and more bad news. Subaru sold two hundred and forty four thousand cars,
up a sharp fifteen percent revenue rose more than eleven percent to eight point three billion, but its operating profit dropped sixteen percent to five hundred and eighteen million dollars, and its net profit fell almost thirty five percent to only three hundred and seventy five million. The US accounts
for well over eighty percent of Subaru sales, and it expects Terrace to cut its profits by fifty percent for the full year.
Speaker 2: Toyota also reported.
Speaker 1: Its latest financial earnings, and while the top lines look good, the bottom lines looked bad. Toyota sold two point four
million vehicles in the last three months, which was up a solid seven percent from last year. That drove revenue
up more than twelve percent to eighty three billion dollars, but its operating profit dropped almost eleven percent to just under eight billion dollars and its net profit plummeted thirty six percent to just under six billion.
Speaker 2: Toyota says US tariffs.
Speaker 1: Cost it over three hundred million dollars in the quarter, but it expects that to hit nine point.
Speaker 2: Five billion dollars for the full year.
Speaker 1: And you'd think that with tariffs hurting Toyota's exports to the US, it might consider closing a plant in Japan, but it's doing just the opposite. Toyota plans to build
a brand new plant in Nagoya that will be its quote plan of the future and will help the company maintain its yearly production capacity in Japan of three million units.
That suggests to us that when the new plant is ready to open, Toyota will close an old plant like the Hanscha plant in Nagoya that opened in nineteen thirty eight, and yet the new plant will not start making vehicles until sometime in the twenty thirties. It's a little weird
to hear a car company announce a new plant that won't open for another six to seven years. It's also
a little weird to hear a Japanese automaker say it's going to use a three shift operation at an assembly plant and even work overtime on weekends. But that's what
Honda is considering at its plants in the US.
Speaker 2: Or at least some of them.
Speaker 1: Three shift operations and overtime can greatly increase production, but for Japanese automakers it's been kind of taboo because it can really wear out people and equipment, and it doesn't leave much time between shifts either, which is when plants typically schedule maintenance and repairs, which plays such.
Speaker 2: An important role in maintaining quality.
Speaker 1: Honda is undoubtedly looking to increase US production to offset imports from Japan, Mexico, and Canada that are getting hit by terraffs, and it sure looks like it's ready to break its own manufacturing taboos to get there.
Speaker 3: At CSP, we work with OEM engineers across the country on their journeys to lighter, safer, and more eco friendly vehicles.
Learn more at VCSP dot com.
Speaker 1: President Trump's tariffs have caused the most losses for automakers since the pandemic. The Wall Street Journal reports that automakers
have taken a nearly twelve billion dollar hit so far because of the tariffs, and.
Speaker 2: The losses are expected to continue.
Speaker 1: Net profit for the ten largest automakers is expected to drop by a quarter this calendar year.
Speaker 2: To the lowest level since twenty twenty.
Speaker 1: Automakers can raise prices or move production to the US to help awset the terraffs, but so far companies have been reluctant to booze prices since that will hurt sales and moving production takes time, since it takes years to build a plant and rework the supply chain, so analysts say automakers could feel the impact of Terris for years and tarifs are going to cost UAW workers thousands of dollars in profit sharing. They receive bonuses based on GM,
Ford and Stalantis's prior year financial performance, which averages about one thousand dollars for every billion dollars in operating profits that the automakers earn.
Speaker 2: In North America.
Speaker 1: Two years ago, union members at all three companies received more than ten thousand dollars in profit sharing, But according to the Anderson Economic Group, based on the automaker's first half results and full year guidance, bonuses for GM and Ford workers will drop by three to five thousand dollars, and UAW workers at Stalantis may not get anything at all. Overseas,
buyers prefer sharper, sportier designs compared to people in China.
That's according to the chief designer at SEIC, who also holds the unique job of se styling cars for MG after the Chinese automaker acquired the iconic British brand in two thousand and seven. Rather than designing separate versions for
China and overseas markets, which would add production costs. He
says the look of the new MG four was moderated and more restrained to help it appeal to both markets.
General Motors is working to reduce its reliance on China for rare earth magnets, and it just signed another deal with a domestic supplier. It formed a multi year partnership
with Texas based no Von Magnetics for rare earth that will be used in components for its full sized trucks and SUVs. GM also has deals with MP Materials and
Evac Magnetics, and thanks to this new deal, GM says the majority of its rare earth materials will now come from domestic suppliers. Speaking of GM Chevy's one thousand, two
hundred and fifty horse power all wheel drive version of the Corvette, we'll start at a little over two hundred and seven thousand dollars including destination charges. The convertible version
is ten thousand dollars more than that, and the three LZ package tax on another eleven grand. The ZR one
X is made at GM's Bowling Green plant in Kentucky, and we'll do zero to sixty and under two seconds, but customers will have to wait until the end of the year to take delivery. Don't forget to check out
Autoline after hours. At three pm Eastern time today, we'll
be diving into second half forecast for car sales and they don't look good. Plus we'll get into other top
news stories of the week. And hey, we're also looking
for your help. We've posted a survey that you can
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new sponsor joining the autoline network, alex Partners, and it wants to measure the effect of its sponsorship with a before and after survey, and we'd really appreciate your help.
Speaker 2: That's a wrap for today. Thanks for tuning in.
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