AD #4146 - Used EVs Are Hottest Segment in U.S.; European Suppliers Beg for EU’s Help; BYD Slashed Japan Prices 50%
Autoline Daily
AD #4146 - Used EVs Are Hottest Segment in U.S.; European Suppliers Beg for EU’s Help; BYD Slashed Japan Prices 50%
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Speaker 1: This is Outline Daily, the show dedicated to enthusiasts of the global automotive industry. Automotive suppliers in Europe are so
alarmed at how much business they're losing that they're demanding local content rules for protection. The European Association for Automotive Suppliers,
known by the acronym KLEPPA, says that last year, fifty four thousand job eliminations were announced. So far this year,
another twenty two thousand have been announced, and it says that the European supplier industry could lose a total of three hundred and fifty thousand jobs by twenty thirty. These
suppliers currently account for seventy five percent of the content that goes into vehicles made in Europe, but warned that they could lose twenty three percent of that by the end of the decade. As we've been reporting, Europe faces
a major problem in that new car sales are well below where they were a decade ago, and Chinese car companies are making major inroads into the market. Meanwhile, Bloomberg
reports that BYD is starting a price war in Japan.
It's cutting the prices of some of its models by as much as fifty percent, or about six seven hundred bucks.
That's because BYD is facing a sales disaster in Japan.
In the last two and a half years, it only sold five three hundred cars despite having forty five dealerships around the country. But slashing prices like that will destroy
the residual value of the cars that it's already sold, and the people who bought those cars will be pretty ticked off that they paid so much. And right on
the heels of that, Shallmi announced that it's going to start selling the performance version of its electric SIU seven sedan in Japan through its smartphone and home appliance stores by the end of this year. It will only have
a handful of those stores, but is looking at building them all across the country. As reflected in the previous story,
Japan does a pre pretty good job of limiting how many cars foreign automakers sell in its country. Last year,
four and automakers only accounted for about five percent of market share, by far the lowest of any major car market in the world. Sales of used evs are starting
to take off in the US. According to Cox Automotive,
used EV sales increase thirty four percent in the first six months of the year. Part of that is because
prices are coming down fast. The average used EV costs
thirty four seven hundred dollars in August, which is only slightly more than use gas powered vehicles. On top of that,
a typical used EV is only two to three years old compared to use gas vehicles, which are six to seven years old on average, and used EV inventories expected to continue to grow. According to recurrent two hundred and
forty thousand evs will be coming off three year leases next year.
Speaker 2: 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: Jaguar land Rover is slowly restarting its operations after a cyber attack forced it to shut down last week. It
got some of its systems back online now. The automaker
says it will restart some of its production in the next few days. JLR also secured a two billion dollar
loan from the UK government to help pay suppliers who were struggling financially during the disruption, and since the company sought the loan, that suggests to us that JLR didn't pay a ransom to the hackers, And speaking of automakers restarting operations, General Motors announced that it will reopen one of its engineering buildings at its Warren Tech Center near Detroit on October first. GM closed the building earlier this month,
which has ten thousand workers, after two employees tested positive for Legionnaire's disease. Stillants is promoting its Chief Financial Officer
of North America, Jul Lorrainho, sorry if I butchered that name, to CFO of the entire company. Prior CFO Doug Oasterman,
resigned from Stillantis for personal reasons. Loraino joined Fiat Chrysler
in two thousand and nine, eventually rising the CFO of North America in twenty seventeen. He briefly left the odd
maker in twenty twenty four to join Goodyear, but he returned to Stallantis earlier this year. And earlier this year,
Mercedes spun off part of its North American research group to form a new company called Athos Silicon. It's a
semiconductor company that makes chipsets for autonomous vehicles, not just for cars, but also for robots, drones, and aerospace Athos is located in Silicon Valley, and Mercedes recognized that it needed to let the company operate independently to innovate quickly, move fast, and expand beyond automotive. This is a trend
that we're seeing growing in the automotive industry. It's like
Ford Skunkworks program in California. It's beginning to dawn on
legacy auto makers that their legacy systems in corporate structures move too slowly to bring new products and tech to the market. While a good chunk of a car can
be recycled, there's still a number of components that can't.
We're talking about foams, plastics, films, and paint particles which are then shredded into a slurry, and currently the only way of getting anything useful out of that complex mixture is with a lot of heat and energy. But Portia,
in partnership with BASF, successfully completed a pilot project showing how that mixture, which it calls automotive shredder residue, can be recycled chemically. The process turns the shredded pieces into
a gas, which is then used to make polyurethane. A
Porsche supplier was able to take that polyurethane, turn it into a foam, and finally use that foam to make new steering wheels. The automaker says it will look for
more recycling opportunities like this in the future, but as of right now, it's not incorporating the process into its vehicle production. For our latest poll, we asked our members
thoughts on retractable door handles. There's some concern over their safety,
especially for ones that are electronically operated. Twenty percent responded
that they love retractable handles, almost sixty one percent prefer manual handles, twelve and a half percent say they haven't had the chance to use these kind of door handles yet, and just over six percent say none of the above.
Cool Tax was one of the few in favor of no handles at all. Love the push buttons on the
Mustang Machi, allowing for keyless entry at all four doors.
The actuator assists with door opening and auto start, and climate means the doors are unlikely to free shut. But
most kind of had the same thinking as Dave, who says, quote, I understand the aero benefits, but can't the OEM's engineer manual handles that are just as aerodynamic and at lower cost and more reliable and perhaps do not need the electrical system to work.
Speaker 3: You know.
Speaker 1: Thanks to everyone that took a moment to participate in our poll, and if you'd like to join in, please consider becoming a YouTube or Patreon member as well. Plus
you'll get more content than just these polls. Could carbon
capture be that salvation of the internal combustion engine? What
if you could run an engine on gasoline or diesel that had zero CO two coming out the tailpipe. That's
going to be the topic on auto Line after ours this Thursday, and you're not gonna want to miss it.
But that's a wrap for today's show. Thanks for making
autoline a part of your day.
Speaker 4: Auto Line Daily is brought to you by alex Partners.
When it really matters CSP, the Composites Solution Partner, Intrepid Control Systems, over the Air Engineering boost your game and thanks to the following YouTube and Patreon members.
Speaker 3: We help businesses respond decisively to their most critical challenges, from urgent performance improvement to enterprise wide transformation. We work
across the full value chain in automotive and in industrials, helping clients navigate disruption, drive innovation and unlock sustainable growth ALEX Partners when it really matters.
Speaker 5: Hi, I'm Don Hatfield from Traffic Control Systems and I'm presenting the Wireless be AMSS solution from intrept Control Systems of come and to see us in this demo at through forty six hundred at the Battery Show, and also analog devices will either as well. Be happy to talk
to you and help you with your solution. M
About this episode
European automotive suppliers face massive job losses and are calling for protective local content rules amid declining car sales and competition from Chinese automakers. BYD has initiated a price war in Japan after poor sales, while Stellantis promotes a new CFO and Jaguar Land Rover recovers from a cyberattack. Used EV sales in the U.S. are surging due to falling prices and increasing lease returns. Mercedes spins off a semiconductor company to accelerate innovation, and Porsche explores chemical recycling of automotive shredder residue. The episode also covers a poll on retractable door handles and previews a discussion on carbon capture for combustion engines.
Original notes
- European Suppliers Beg for EU’s Help - BYD Slashed Japan Prices 50% - Xiaomi To Sell Cars in Japan In Smart Phone Stores - Used EVs Are Hottest Segment in U.S. - JLR Slowly Restarting After Cyber Attack - GM Reopens Tech Center After Legionnaire’s Disease Scare - Stellantis Appoints New CFO - Mercedes Speeds Up Tech Development - Porsche and BASF Test Chemical Recycling - Retractable Door Handles Poll Results
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