AD #4181 - Audi To Develop SUV On Scout Platform; UAW Monitor Criticizes Fain’s Leadership; Chinese Car Exports to Russia Plummet

Speaker 1: This is ouderligned daily, the show dedicated to enthusiasts of the global automotive industry. The court appointed watchdog overseeing the

UAW just issued another report that's highly critical of President Sean Fain's leadership as well as the union's culture. That

watchdog was put in place to monitor the UAW after a corruption scandal sent several.

Speaker 2: Union officials to prison.

Speaker 1: While it has made some progress, the watchdog accuses Fane of fostering quote a toxic culture of division and retaliation.

Speaker 2: He warns that if the culture isn't.

Speaker 1: Reformed, that it's quote only a matter of time before abuse and corruption creep back into the union. As of

this writing, the UAW hasn't responded to the new report, but the same watchdog issued a similar report back in June, so it doesn't seem like enough has changed yet. Ford

opened the doors to its new headquarters and Dearborn, Michigan, and we think it's a place where most people would like to work. There are really no offices, just lots

of open workspaces with comfortable chairs and tables. Instead of long,

straight hallways, the walkways flow and bend throughout the building, taking you through different departments there's a food court with eight different kitchens with chefs cooking up meals from scratch, and you can grab a pizza or a whole chicken on your way home if you don't have time to make dinner. In many ways, the new HQ is the

polar opposite of the old one. It was a mid

century glass box that was designed for a top down, command and control style of management. The new headquarters is

designed to encourage a lot more collaboration from different departments across the company, which could lead to new products getting developed a lot more quickly. In fact, this new HQ

was literally designed to change the culture of the company.

A report next week that the VW Group is running out of cash had us wondering if Scout could be in trouble. But here's something that should keep that program

moving forward. Audi's CEO says the brand is planning to

develop a new large SUV for the US market that will be built off the Scout platform, which itself will be heavily influenced by the VW and Rivian partnership. It

said the Audi model will have the range extended electric powertrain and could rival something like the land Rover Defender.

Audi will also tap Scout for manufacturing. It currently doesn't

build any vehicles in the US, and while AUDI had considered setting up its own local production, it will instead rely on the plant that Scout is building in South Carolina, which is expected to have cars running down the line by twenty twenty seven and an eventual capacity of over two hundred thousand units a year. The move not only

allows AUDI to trim its investment in development, but also avoid US tariffs, and Scout gets the advantage of extra scale at its brand new factory. GM's not the only

automaker that wants its suppliers to cut their China content.

The Wall Street Journal reports that Tesla is also requiring suppliers to get rid of China made components that go into.

Speaker 2: Its US built vehicles.

Speaker 1: The automaker had already been increasing its North American content for the last couple of years, but now it wants to switch all other components to those made outside of China by twenty twenty seven. That's the same timeframe that

GM gave its suppliers, saying it wants to make sure its supply chain does not get impacted by geopolitical problems and we would not be surprised than the least bit if we hear about similar reports from other automakers.

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 VICSP dot com.

Speaker 1: When Russia attacked Ukraine, four and automakers abandoned Russia, which left the doors wide open for Chinese automakers who quickly flooded the market. And it turns out they were a

little too successful, so much so that Russia imposed fees and tariffs to slow them down, and it's working. Exports

of Chinese cars to Russia are down fifty eight percent this year. Of course, that's not the only reason exports

are down. Military spending on the war in Ukraine kicked

off an inflation spike in Russia that now has the interest rates on new car loans set at.

Speaker 2: Thirty percent a year.

Speaker 1: Meanwhile, China's global car exports are surging ahead. They were

up almost twenty three percent last month, with six hundred and sixty six thousand vehicles getting shipped around the world.

If China keeps going at that rate, it will be exporting eight.

Speaker 2: Million vehicles a year.

Speaker 1: Which twice as many vehicles as Germany makes, and all those Chinese exports are taking market share away from legacy automakers, but no one is getting hit harder than the Japanese.

They used to control about eighty to ninety percent of the Southeast Asian market, but that's evaporating quickly. In Thailand,

for example, Japanese market share has dropped from ninety percent to seventy one percent, and BYD.

Speaker 2: Now Outsulls Honda. There.

Speaker 1: In fact, BYD is taking the fight right to the Japanese home market with its own K car. It's going

to launch an electric K car next year called the Raco that will boast a base price just a little over sixteen thousand bucks. K cars, which account for about

forty percent of the Japanese market, are small, little passenger vehicles which have to meet exacting Japanese specifications, which means BYD had to specifically design the Rako for the Japanese market, not just modify one of its existing models. Evs have

tremendous low end torque, which gives them very quick acceleration, but that can be too much for everyday motorists to handle.

So reports said that China wanted to limit ev acceleration from zero to one hundred kilometers an hour to five seconds or more. So we asked you in our latest

poll if you want to see this become a global standard, and a third of you said yes, while sixty one percent said no, that would be a terrible idea, and the remainder said none of the above. A lot of

you agreed with Jeff Pain's idea. He says, quote, I

like the idea of the default being more like Eco mode with modest acceleration, but with the driver option to switch to an aggressive sport mode that unleashed the full torque slash horse power. Don't eliminate the power, just require

a conscious choice before it's activated. Alex Pickworth wrote, most

do not need the tok but the market will decide that.

Em Civic Golf said quote default of five and a half seconds zero to sixty is probably still too much for many drivers. Slower acceleration will improve range too. And lastly,

Mike McAllister had this idea, Rather, the initial tip in should be moderate and early acceleration should be designed to lessen risk and improve control. Well, it turns out China

agrees with most of you. The country's Ministry of Public

Security came out saying those initial reports were wrong.

Speaker 2: The regulation only.

Speaker 1: Applies to how torque is delivered at startup and does not prevent cars from achieving faster times once additional driver inputs or performance.

Speaker 2: Settings are engaged.

Speaker 1: So thanks for all of your feedback, but that wraps up today's show. Thanks for watching and have a great day.

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across the full value chain, in automotive and in industrials, helping clients navigate disruption, drive innovation, and unlock sustainable growth.

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