AD #4292 - Automakers Won't Make Profit at Current Sales Rate; Lexus Gets 1st 3-Row EV; GM Works to Fill Skilled Trades Shortage
About this episode
Sales were pulled forward earlier in the year, leaving automakers facing softer demand and pressure on profits, while EV pricing and range updates keep reshaping the market. The show also covers Lexus’s first all-electric three-row SUV, BMW’s latest iX3 details, and a paid hands-free driving feature. Beyond products, the hosts look at how legacy automakers can keep up with China’s speed and how GM is investing heavily to grow the skilled trades workforce.
SAR (seasonally adjusted annual rate)
"The Bureau of Labor Statistics says the SAR, or seasonally adjusted annual rate, came in at only fifteen point five million units for the year."
SAR is a standardized way to estimate how many cars are being sold in a year. It adjusts for seasonal trends so the numbers are easier to compare.
SAR, or seasonally adjusted annual rate, is an industry way of expressing how many vehicles are being sold per year after adjusting for seasonal buying patterns. It lets analysts compare months or years on a consistent basis, even when demand naturally rises and falls throughout the year.
residual values
"but remember the people who already bought the car are going to see their residual values drop by at least the equivalent of these price cuts."
Residual value is what the car is expected to be worth later—often at the end of a lease. If new cars get cheaper, earlier buyers can see their cars worth less too.
Residual value is the estimated value a car will have at the end of a lease or after a period of ownership. When prices are cut on new cars, the market value of already-sold cars can drop, which lowers residual values and can make leases or resale less attractive for earlier buyers.
Ford
"Sure looks like Chinese automaker Jili is buying a part of a Ford plant in Spain."
Ford is the company whose Spain plant is being discussed in a potential partnership. It’s part of a bigger story about where cars get built and how that affects costs.
Ford is referenced as the automaker whose plant in Spain could be involved in a deal with Jili. The segment frames this as a manufacturing and market-share strategy influenced by tariffs and regional production.
Jili
"Sure looks like Chinese automaker Jili is buying a part of a Ford plant in Spain."
Jili is a Chinese car company mentioned here as possibly partnering with Ford to build cars in Spain. The idea is to use factories more efficiently and reduce trade friction.
Jili (Geely) is mentioned as a Chinese automaker potentially buying into Ford’s plant operations in Spain. The discussion is about manufacturing strategy—where cars are built and how that can affect trade exposure and capacity utilization.
General Motors
"That's why General Motors is making a big commitment to train future skilled trade workers, investing nearly two hundred million dollars in the past year."
General Motors is trying to solve a shortage of skilled factory workers by funding training programs. They’re placing apprentices into a multi-year program that mixes classroom learning with real work.
General Motors is discussed as investing in training for skilled trades workers to address a labor shortage. The segment highlights a multi-year apprenticeship approach combining hands-on instruction, classroom training, and on-the-job experience.
Nordschleife
"Speaker 2: Nordschleife. [201.8s] Speaker 1: Ford and Chevrolet, for example, keep bringing tricked out Mustangs and Corvettes to the famous German racetrack"
Nordschleife is a specific track section at the Nürburgring in Germany. It’s known for being very challenging, which is why people talk about lap times from it.
Nordschleife is the “North Loop” section of the Nürburgring in Germany. It’s famous for being long, fast, and extremely demanding, so lap times there are widely used as a benchmark for real-world performance.
Chevrolet Corvette
"...r example, keep bringing tricked out Mustangs and Corvettes to the famous German racetrack, trying to outdo e..."
The Chevrolet Corvette is a sports car made by Chevrolet. It’s designed to be fast and is popular with people who take their cars to racetracks. The podcast mentions it because modified Corvettes are being brought to the track to try to outperform others.
The Chevrolet Corvette is a performance sports car built by Chevrolet, typically known for its strong power and track-capable design. It’s frequently discussed in motorsport and enthusiast circles because owners commonly bring highly modified Corvettes to events to compete on lap times. In the podcast context, it’s grouped with Mustangs as part of the “tricked out” cars showing up at a famous German racetrack.
Ford Mustang
"...Chevrolet, for example, keep bringing tricked out Mustangs and Corvettes to the famous German racetrack, try..."
The Ford Mustang is a sports car made by Ford. People often modify them with performance parts and take them to racetracks to try to go faster. That’s why it’s mentioned in a story about cars showing up for track runs.
The Ford Mustang is a long-running American sports coupe/convertible known for its performance-focused engines and strong aftermarket support. It often comes up in racing and track discussions because enthusiasts and tuners frequently bring modified Mustangs to events to chase lap times and showcase upgrades. In the podcast context, it’s mentioned as one of the cars being brought to a well-known racetrack in a “tricked out” form.
Volkswagen Golf GTI 50th Anniversary Edition
"But Volkswagen just impressed us by turning in the fastest time for a front wheel drive car with the Golf GTI, and it was a production version of the GTI. Well mostly it's a fiftieth anniversary edition of the GTI"
This is a special 50th-anniversary version of the Volkswagen Golf GTI. The hosts are saying it impressed on the Nürburgring, especially for a front-wheel-drive car.
The Volkswagen Golf GTI 50th Anniversary Edition is a performance-focused hot hatch built around the GTI name. In this segment, it’s highlighted for setting a standout Nürburgring lap time for a front-wheel-drive car, using specific hardware like a lightweight exhaust and race-style tires.
Volkswagen Golf
"...fastest time for a front wheel drive car with the Golf GTI, and it was a production version of the GTI. ..."
The Volkswagen Golf is a compact car. The Golf GTI is a faster, sportier version, and the podcast is talking about a production GTI that set a front-wheel-drive lap time. “Production version” means it was based on a car you could buy, not a custom-built race car.
The Volkswagen Golf is a compact car line that’s especially significant in performance circles because the Golf GTI is one of the most well-known hot hatches. The podcast specifically references a fastest-time run for a front-wheel-drive car using the Golf GTI, and notes that it was a production version—meaning it wasn’t a one-off prototype. That makes the Golf (via the GTI) notable as a practical car that can still deliver serious track performance.
front wheel drive
"But Volkswagen just impressed us by turning in the fastest time for a front wheel drive car with the Golf GTI"
Front-wheel drive means the front wheels do the work of moving the car. It can affect how the car feels and grips compared with cars where the rear wheels drive.
Front-wheel drive (FWD) means the engine’s power is sent to the front wheels. It changes how a car handles and accelerates compared with rear- or all-wheel drive, and it’s often a key factor when comparing lap times.
semi slick tires
"ran on Bridgestone potends a race semi slick tires. That combination produced a lap time"
Semi-slick tires are performance tires with less tread than normal. They usually grip better for fast laps, but they can be worse in the rain and may wear quicker.
Semi-slick tires are performance tires with minimal tread, designed to maximize grip on dry pavement. They typically improve lap times but can wear faster and may be less effective in wet conditions than fully treaded tires.
skateboard chassis
"EV startup TOG, which is Turkey's first domestic EV brand, is partnering with CTL to develop EVS on the Chinese Battery Makers skateboard chassis."
A skateboard chassis is an EV “platform” where the battery and key electric parts sit low in the floor. That makes it easier to build different EVs using the same basic underbody design.
A skateboard chassis is an EV platform where the battery pack and electric drive components are packaged into the vehicle floor area. This layout can simplify building multiple models on the same base and helps integrate the battery with the suspension and braking hardware.
battery and electric drive train
"The chassis is integrated with the battery and electric drive train, as well as the suspension in braking systems."
In an EV, the battery stores the energy, and the electric drive train turns that energy into movement. Their design and placement matter for how the car drives and how much space it has.
The battery and electric drive train are the core power system of an EV: the battery stores energy and the electric drive train converts it into motion through the motor(s) and related components. How tightly these are integrated into the chassis affects packaging, weight distribution, and efficiency.
Chinese test cycle
"It has up to one thousand kilometers or six hundred and twenty one miles of range based on the Chinese test cycle"
A test cycle is a set of driving conditions used to estimate how far an EV can go. If it’s based on China’s test rules, the range number may not match what you’d see under other countries’ testing.
A test cycle is a standardized driving procedure used to estimate EV range. The “Chinese test cycle” refers to the specific protocol used in China, so its results may not match range numbers from other regions’ testing methods.
Lexus TX
"Lexis revealed its first all electric three. [324.2s] Speaker 2: Row SUV, the TZ. [326.6s] Speaker 1: While this is basically the brand's version of the new Toyota Highlander, it does offer a number of upgrades."
Toyota Highlander
"...s basically the brand's version of the new Toyota Highlander, it does offer a number of upgrades. It's only av..."
The Toyota Highlander is a family SUV that can seat multiple people. It’s built for everyday driving with room for passengers and luggage. The podcast mentions it as the standard version that something else is based on, with additional upgrades.
The Toyota Highlander is a midsize three-row SUV designed for family use, offering space and comfort for passengers and cargo. In the podcast context, it’s referenced as the baseline “new Toyota Highlander” that another model is being compared to, with the note that the other vehicle offers upgrades. That’s why it comes up: it’s a common benchmark for what a modern family SUV should be like.
all wheel drive
"It's only available in all wheel drive instead of both front and all wheel drive, and it makes significantly more power"
All-wheel drive powers all four wheels. It can help with grip, but it may use more energy than a simpler drive setup, which can reduce range.
All-wheel drive (AWD) sends power to both the front and rear axles. In EVs, AWD can improve traction and acceleration, but it can also affect efficiency and therefore range compared with front-wheel-drive variants.
four wheel steering
"Other upgrades for the TZ include four wheel steering, better materials and, in our opinion, more expressive interior styling."
Four-wheel steering means the rear wheels can steer too, not just the front wheels. That can make the car easier to turn in tight spaces and feel more stable at speed.
Four-wheel steering (4WS) uses steering inputs from both the front and rear wheels. At low speeds it can reduce turning radius for easier maneuvering, while at higher speeds it can improve stability and cornering response.
BMW iX3
"Speaking of all electric SUVs, BMW revealed US pricing and range figures for the all new IX three."
The BMW iX3 is BMW’s electric SUV. The hosts are talking about its US price and estimated range so shoppers can compare it to other EVs.
The BMW iX3 is an all-electric BMW SUV, and this segment focuses on its US pricing and range figures. It’s positioned as a key EV option from BMW’s lineup, with the discussion highlighting what buyers can expect to pay including destination charges.
EPA range
"four hundred and sixty horse power all wheel drive system, a one hundred and twelve kilowade hour battery pack, and twenty inch wheels which provides up to four hundred and thirty four miles of EPA range."
EPA range is an official estimate of how far an electric car can go on one full charge. It’s used in the US so buyers can compare different EVs more consistently.
EPA range is the estimated distance an EV can travel on a full charge, measured under US Environmental Protection Agency testing procedures. It’s commonly used in US marketing and shopping because it provides a standardized way to compare EVs.
hands free driving system
"but the one we wanted to highlight is BMW's new hands free driving system, which looks like it's a one time fee of twenty five hundred bucks."
A hands-free driving system is technology that helps the car drive with less manual steering. Even when it’s “hands-free,” the driver typically still has to stay alert and be ready to take over.
A hands-free driving system refers to driver-assistance tech that can steer and/or manage parts of driving while the driver’s attention and supervision requirements still apply. The segment specifically calls out BMW’s new system and notes it’s offered as a one-time paid feature.
BMW iX
"The new IX thie goes on sale in the US in September, and in one last bit of EV pricing news, the new C class is now on sale in Germany..."
The BMW iX is BMW’s fully electric SUV. Here they’re talking about when it goes on sale in the US and how it fits into the EV range/pricing discussion.
The BMW iX is BMW’s electric SUV, known for its large battery pack and long-range focus. In this segment, the hosts discuss its US on-sale timing and the broader EV pricing/range conversation around it.
Mercedes-Benz C-Class
"and in one last bit of EV pricing news, the new C class is now on sale in Germany with a starting price of just under sixty eight thousand euros... That's for an all wheel drive model with about four hundred and eighty horse power..."
The Mercedes-Benz C-Class is a popular luxury car model. They’re mentioning its new availability in Germany and quoting range numbers and pricing for different versions.
The Mercedes-Benz C-Class is a mainstream luxury sedan/compact executive car line. Here, the segment highlights a Germany pricing update and compares EV range figures using WLTP, including an all-wheel-drive version and planned additional drivetrains.
EV pricing news
"The new IX thie goes on sale in the US in September, and in one last bit of EV pricing news, the new C class is now on sale in Germany..."
They’re talking about how electric cars are being priced and marketed, and how far they’re claimed to go. The goal is to see whether other automakers can compete with China’s EV momentum.
The segment frames multiple EV updates around pricing and range, comparing how automakers position new electric models in different markets. It’s essentially about how competitive EV cost and claimed range are versus rivals, especially China.
WLTP rated
"That's for an all wheel drive model with about four hundred and eighty horse power and a WLTP rated seven hundred and sixty two kilometers or roughly four hundred and seventy miles of range..."
WLTP is a European testing standard that estimates how far a car can go on a charge. It’s different from the US EPA test, so the numbers aren’t always directly comparable.
WLTP (Worldwide Harmonized Light Vehicle Test Procedure) is a standardized testing method used mainly in Europe to estimate fuel economy and EV range. The segment uses WLTP range to describe the Mercedes-Benz C-Class variants available in Germany, which may not match EPA numbers directly.
compete with China speed
"What's it going to take for legacy auto makers to be able to compete with China speed. That'll be on the list of topics for today's Auto Line After Hours..."
They’re basically saying Chinese automakers are moving very fast on EVs—new models, lower costs, and big production. The question is what older automakers would need to do to keep up.
“Compete with China speed” is a shorthand for the pace at which Chinese automakers are scaling EV production, cutting costs, and launching new models. The segment suggests legacy automakers may need major changes to match that rapid execution.
Jeep Wrangler
"She's the former chief engineer on the Jeep Wrangler. And Gladiator and was the vice president covering electric vehicles at JD Power..."
The Jeep Wrangler is a popular off-road SUV. They mention it because the guest previously worked as a chief engineer on it.
The Jeep Wrangler is a rugged off-road SUV line known for its removable roof and doors and strong trail heritage. The guest’s “former chief engineer” role on the Wrangler is used here to establish her engineering credibility.
JD Power
"She's the former chief engineer on the Jeep Wrangler... and was the vice president covering electric vehicles at JD Power, so she brings a wealth of knowledge with her."
J.D. Power is a well-known automotive research and consumer insights company. In the segment, the guest’s background at J.D. Power is used to establish expertise in electric-vehicle-related analysis.
Jeep Gladiator
"She's the former chief engineer on the Jeep Wrangler. And Gladiator and was the vice president covering electric vehicles at JD Power..."
The Jeep Gladiator is a pickup truck that’s related to the Wrangler. They mention it because the guest previously worked as an engineer on it.
The Jeep Gladiator is a midsize pickup truck built on Jeep’s Wrangler-based platform, combining truck utility with Jeep’s off-road DNA. In this segment, it’s mentioned as part of the guest’s engineering background.
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