Lifetime cost of ownership is how much money you will spend on a car from the time you buy it until you sell it. This includes things like how much you pay for gas, repairs, and insurance.
SK Innovation is a company from South Korea that makes batteries for electric cars. They work with car companies like Ford to help create better battery technology.
Ford Energy is a new part of Ford that makes batteries for storing energy. They help places like power companies and data centers use energy more efficiently.
Renault is a car company from France that makes a variety of vehicles, including electric cars. They used to sell cars in the US but left the market in the late 1980s.
Crossovers are cars that are built like SUVs but are usually smaller and easier to drive. They have more space than regular cars and are great for families.
OTA means Over-The-Air, which is a way to update a car's software without needing to take it to a shop. It allows car makers to fix problems or add new features remotely.
Hands-free driving means you can drive a car without using your hands on the steering wheel or feet on the pedals. The car does a lot of the driving for you, which can make it easier and safer.
The Ford Expedition is a big SUV that can carry a lot of people and stuff, making it great for families or road trips. It's known for being comfortable and having lots of space inside.
The Ford Mustang is a popular sports car that many people love for its speed and cool looks. It's been around for a long time and is often talked about because it's a classic American car that represents fun driving.
Blue Cruise is a feature from Ford that lets you drive without using your hands on the steering wheel. It helps make driving easier, especially on long trips.
Mercedes-Benz is a luxury car brand from Germany that makes high-quality cars and trucks. They are known for their stylish designs and advanced technology.
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Speaker 1: This is underlying Daily the show dedicated to enthusiasts of the global automotive industry. A study from the University of
Michigan shows that three year old used evs now offer the lowest lifetime cost of ownership across nearly every vehicle class, beating out new and used gasoline hybrid and plug in hybrid models.
Speaker 2: The main reason.
Speaker 1: Depreciation because evs tend to lose value faster than their IC counterparts in the first few years. Second owners are
reaping the rewards, and we think the numbers are stunning.
A three year old mid sized electric suv can save an owner roughly thirteen thousand dollars over its remaining life compared to buying its IC equivalent, with a lot of the savings coming from charging at home. More than three
hundred thousand evs are coming off lease this year in the US, and who knows they could become the hottest commodities unused car lots Ford wrote off nineteen and a half billion dollars on its evy efforts, but the number is actually bigger than that. Sk Innovation reported today that
it lost two point six billion dollars on its battery joint venture with Ford no doubt, other suppliers are getting Ding two, and yet Ford is not giving up on making batteries. Last month, it announced that it was starting
a new business unit to make batteries for energy storage, which public utilities and data centers need. That new business
unit is called Ford Energy, and yesterday the company announced that Lisa Drake will be the president of the operation with responsibility for cell manufacturing, system assembly in sales. Interestingly,
she will report to John Lawler, Ford's vice chairman.
Speaker 2: But remember that name, Lisa Drake.
Speaker 1: A couple of years ago, the rumor was that she could possibly become Ford's next CEO.
Speaker 2: That may or may not happen, but she's clearly being great for bigger things.
Speaker 1: Renault dropped out of the US market in nineteen eighty seven when it sold American motors to Chrysler, and it dropped out of the Chinese market in twenty twenty. Saha
do you grow your company when you're not competing in the two largest car markets in the world. Well, Renault
isn't about let the next big fish slip through its hands.
It's making India a top priority with a lineup of low cost crossovers in the pipeline. As we reported on Monday,
India and the EU just signed a trade agreement that will slash Indian.
Speaker 2: Terras on imported European cars.
Speaker 1: With annual sales of four and a half million vehicles, India is now the third largest market for new cars by country, and with a population larger than China's, it's considered the greatest growth market left in the world. In
an effort to boot sales, Stilantis is slashing prices in its largest European market. The automaker began cutting prices in
France last year and plans to continue them in twenty twenty six. The Opal Course is now available for fifteen
thy nine hundred euros, the Fiat Pandina starts at only nine nine hundred, and the Pougeot two toh eight is offered with a monthly leasing rate of only two hundred and eight euros. Reuter's reports that the help regain market
share in Europe and North America stillantas CEO Antonio Filosa is prioritizing sales over profits by cutting prices, and with more sales to.
Speaker 3: Fleets developing today's vehicles issues can happen in an instant when's the best time to solve a problem? The minute
you know you have one me wireless Neophi Cloud, You're secure off the shelf solution, empowering real time collaboration for quick resolution. With Wireless Neovi 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 executives oversight throughout the process. Wireless Neovi Cloud your
vehicle update solution in production and on the road, intrepid control systems driven by your data.
Speaker 1: Hondai's premium brand, Genesis, is ditching its direct sales model in Europe and is adopting a traditional dealer system. Genesis
says it's making the change because it wants to grow sales and the direct sales model is inscalable. Genesis sold
fewer than twenty five hundred vehicles last year in Europe, mainly because it's only he sold in three markets since entering in twenty twenty one. Those are Germany, Switzerland in
the UK. But now that it's moving to a dealership
based system, Genesis will expand into France, Italy, Spain and the Netherlands this year and With that expansion, it will cover seventy five percent of the European market. This is
all part of Genesis's plan to sell three hundred and fifty thousand vehicles a year worldwide by twenty thirty. Last year,
the automaker sold about two hundred and twenty one thousand, five hundred vehicles globally. GM is set to earn billions
from its software and subscription services. The company revealed that
it recorded five point four billion dollars in deferred revenue last year from its on Star related connected features, which includes things like in car Wi Fi streaming services and super Crews hands free driving for clarity. Deferred revenue is
a payment a company receives in advance for products or services it has not yet delivered, and GM expects its deferred revenue to jump by billions more this year, forecasting seven and a half billion dollars in twenty twenty six, with Supercrews playing a growing role in that figure. More
than six hundred and twenty thousand owners are now subscribers, up eighty percent from twenty twenty four, and on top of that, the feature generated two hundred and thirty four million dollars in revenue in twenty twenty five and is expected to go to four hundred million dollars this year.
Speaker 2: GM says that while it includes three years.
Speaker 1: Of prepaid services for supercrews, forty percent of customers choose to keep paying for it after the free period. Ford
also reported that it saw big increases in hands free driving use. Last year, customers drove about two hundred and
sixty four million miles using the feature, the equivalent of three point eight million hours of operation, an increase of eighty seven percent compared to twenty four While Blue Cruise is available on the Explore Expedition, Mustang, Machi and the entire Lincoln lineup, the F one fifty accounts for about forty five percent of total use, and just like GM, those numbers will continue to grow this year. Not only
is it launching the latest version with automatic lane changes, Ford is expanding Blue Cruise to four new models in Europe.
Here's one of the more surprising reports that we've seen.
Speaker 2: In a while.
Speaker 1: In an interview with a German media outlet, Mercedes Benz CEO Ola Collenius claims that US Commerce Secretary Howard Lutnick tried to get the automaker to move its headquarters from Germany to the US. The offer happened a year ago
and included tax relief and other incentives. Obviously, Collenius decline,
saying its roots are in Germany. The growth of EV's
in China has eaten into the market share of gas and diesel powered vias, and soon the same thing could happen in the commercial sector. Bloomberg reports that sales of
electric and new energy trucks top two hundred and thirty thousand units last year, representing about twenty percent of the heavy duty market, and it was the first time that NYV trucks outsold gas powered ones in China. There's also
fear from the natural gas sector that electrified trucks could eat into LNG usage. Sales of models that run on
LNG were just under two hundred thousand units last year in China. However, LNG still holds a cost advantage over electric,
and China offered enhanced subsidies to scrap old trucks, which helped boost sales last year. So this is something we'll
have to keep an eye on. But that brings us
to the end of today's show. Thanks for making autoline
a part.
Speaker 2: Of your day.
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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.
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About this episode
A recent study reveals that three-year-old used EVs now have the lowest lifetime ownership costs, outperforming traditional gasoline vehicles. With over 300,000 EVs coming off lease this year, they could become highly sought after. Meanwhile, GM is experiencing a surge in subscription revenue from its OnStar services, while Ford is launching a new battery division led by Lisa Drake. The episode also discusses Renault's strategic focus on the Indian market and Genesis's shift to a dealership model in Europe to boost sales.
- Used EVs Have Lowest Ownership Costs - Lisa Drake to Lead Ford Energy - Renault Bets on India As World’s New Growth Market - Stellantis Slashes Prices Putting Volume Over Profits in Europe - Genesis Europe Ditches Direct Sales, Goes with Dealers - GM’s Billion-Dollar Subscription Surge - Ford BlueCruise Usage Skyrockets As F-150 Drivers Embrace Hands-Free Tech - Mercedes Rejects U.S. Pressure to Move HQ To U.S. - Heavy-Duty Electric Trucks Outsell ICE in China
