Automakers face rising costs due to tariffs, with destination charges increasing significantly, impacting vehicle prices despite stable sticker prices. Nissan considers exporting US-made SUVs to Japan to boost sales and support trade talks during President Trump's visit. A new chip shortage threatens US and German production, linked to geopolitical tensions over a Dutch chipmaker. Tesla reclaimed the top EV sales spot in Europe for September, though overall EV sales continue to grow. The podcast also explores speculation about Stellantis potentially breaking up due to its large brand portfolio, with listener opinions highlighting challenges in sustaining so many marques.
Topics:tariffs and vehicle pricingdestination chargesnissan suv exports to japanchip shortage impacttesla ev sales in europestellantis brand breakup speculationautomotive trade negotiationselectric vehicle market trendsautomaker layoffs and restructuringgeopolitical impact on supply chain
- Destination Charges Now Average $1,550 - ICE Sales Up Three Straight Months in China - GM Lays Off 200 Engineers - Nissan Considers Exporting SUVs To Japan From U.S. - Suppliers Warn Chip Shortage Will Impact U.S. Production Soon - Tesla Reclaims EU EV Sales Crown - Poll Results: Will Stellantis Be Broken Up?
"... is thinking about sending over the Morano and or Pathfinder, saying it thinks they're well suited for Japan's..."
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Speaker 1: This is Outoline Daily, the show dedicated to enthusiasts of the global automotive industry. All the new tariffs in the
US are costing automakers billions more in costs, but we believe they're worried about getting attacked by President Trump if they were to say that car prices are going up because of the tariffs. While actual sticker prices haven't changed
that much this year, the average vehicle costs just under fifty thousand dollars right now. We have seen purchase incentives
get slashed, which can amount to thousands of dollars. Now,
that hasn't been true for evs over the last several months as the federal tax credit has gone away, but we know ev incentives from major automakers like GM and Ford will go away at the end of the year.
Automakers have also increased destination charges in the face of new tariffs. While the cost to ship vehicles across the
US has been steadily.
Speaker 2: Increasing since twenty twenty one, According to.
Speaker 1: Edmunds, the nation, charges saw their biggest year over year increase in the last decade. They're up eight and a
half percent for the twenty twenty five model year, hitting an average of nearly one thousand, five hundred and fifty bucks.
The actual increase over the last four years might not seem that great, up an average of three hundred and twenty nine dollars, but some brands like Porsche and some segments like pickup trucks are about double that number. China
might like to boast about being an EV powerhouse, but sales of gas and diesel.
Speaker 2: Powered vehicles are also on the rise. In fact, they.
Speaker 1: Were up for a third straight month in September, and for the year they're up zero point eight percent, about the same increase that any V sales have seen in China.
According to the China Association of Automobile Manufacturers, retail sales of ICE vehicles hit nearly one point two million units last month, and from January through September almost ten million have been sold. New energy vehicles are anyvs, which includes bvs,
phs and E revs, have never top fifty percent market share in China.
Speaker 2: For a full year.
Speaker 1: They look like they could be on pace for that this year, but with IC sales on the rise, it will likely be another close race. Despite posting better than
expected financial numbers in the third quarter, which sent its share soaring. General Motors just laid off more than two
hundred salaried workers. Most of the cots were at its
Warrn Tech Center near Detroit and were due to quote business decisions. In a statement to Bloomberg, GM said it's
restructuring its design engineering team, which resulted in a number of the layoffs. In an effort to turn around poor
sales and financial results, Nissan is looking for a boost wherever it can, and that could include exporting US made SUVs to Japan. The company is thinking about sending over
the Morano and or Pathfinder, saying it thinks they're well suited for Japan's road conditions, but the move would also help keep more models rolling down the assembly line and help boost its sales. And there could be another benefit
as well. President Trump arrived in Japan today and will
be in Asia most of the week with the hope of agreeing to new trade deals.
Speaker 2: The idea of exporting.
Speaker 1: US built models to sell in Japan, which Toyota is also considering, could help those trade negotiations.
Speaker 3: Along At CSP, we work with OEM engineers across the country on their journeys to lighter, safer, and more eco friendly vehicles. Learn more at THECSP dot.
Speaker 1: Com that next Buria chip shortage could soon cripple production in the US. MIMA, the group that represents suppliers, says
that auto production will face quote significant impacts and the next two to four weeks. But it's not just US
suppliers that are being impacted. BOSS says it's preparing to
furlough workers at one of its plants in Germany if the shortage.
Speaker 2: Isn't resolved soon.
Speaker 1: And this all stems from Dutch chip maker and Experia getting bought out by Chinese company Wingtech. The Trump administration
warned that the Chinese were planning to move the operations to China, so.
Speaker 2: The Dutch government took the chip maker over.
Speaker 1: China retaliated by limiting exports of Experior components out of China, and that's what triggered this chip shortage. The Volkswagon brand
was number one in BEV sales in July and August in Europe, but Tesla reclaimed the top spot in September.
Speaker 2: The company sold more than thirty eight thousand evs, easily.
Speaker 1: Out selling second place Volkswagon by fifteen thousand units. But
while Tesla was the best selling EV brand, its sales were actually down twelve percent compared to last year. Renault
and BMW round out the top five in EV sales. Overall,
more than two hundred and fifty thousand evs were sold in Europe last month, up twenty two percent from a year ago and accounting for nearly twenty one percent of the total market. In our latest poll, we asked our
YouTube and Patreon members if they agreed with the prediction from former Stalanta CEO Carlos Stavares that the automaker's European operations could be sold to Chinese automakers while Chrysler goes back to US ownership, and the overwhelming majority eighty four percent said you agree that Stilantis will be broken up because there are just too many brands to feed. Only
ten percent said no, you don't believe it will happen because the company needs all that manufacturing scale, and the remaining six percent said neither.
Speaker 2: Here's what they had to say.
Speaker 1: Keith Mensing commented, if they break it up, I think the US company could struggle to maintain enough mark market share and tollal production. Tavares hurt this company to its
core JEEP and Chrysler aren't what they once were. One
Nick Thomas had this comment sounds like sour grapes from Stalantis's chief architect, now casting doubt from the sidelines. Curious
Dave Perkins says storied marks like Maserati and Alpha could and should stand on their own in a much smaller focus company. I rather doubt that they gain much in
the way of design and engineering as part of a much larger operation. And lastly, Bill Brabowski said quote, it
will take a bankruptcy type event, but Ram Slash Jeep will be carved off to a US approved buyer and the other pieces will be parceled to Chinese backed OEMs.
Volvo is already there. It will happen in the next
five years. Thanks for all of your feedback. Eighty four
percent is a shocking number to hear, but when you think about it, supporting that many brands in the long term will be really difficult, and that brings us to the end of today's show. Have a great day and
thanks for watching.
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