Kearney is a consulting company that publishes reports. Here, they’re cited as the source for data showing how chip shortages are raising costs for carmakers.
DRAM is a type of computer memory that helps a car’s electronics run smoothly. The car needs it to support software features like updates over the internet and driver-assist features.
A “pure AV play” means the company’s main business is self-driving technology. Investors look for these companies when they want exposure to autonomous vehicles specifically.
Momenta is a company working on self-driving technology in China. The hosts are saying investors are excited about it because it could go public and is backed by big names.
SAIC is a large Chinese car company. Here it’s mentioned because it’s part of the group backing a self-driving startup, which suggests serious industry interest.
Larry Burns is a former GM research leader. The hosts use his perspective to argue that self-driving progress may happen faster than many people expect.
“800-volt” is about how the car’s battery and charging system is designed. A “plug-in hybrid” can drive on electricity and also has a gas engine for longer trips.
Car
F700
The F700 is a truck from Cherry’s Joutour brand. It’s meant to appeal to off-road fans and it’s a plug-in hybrid, meaning it can run on electricity and also has a gas engine.
Solid-state batteries are a newer type of battery design that aims to be safer and potentially last longer. The episode explains that “true” solid-state has very little liquid inside, and it must stay stable under extreme conditions.
The electrolyte is the material inside a battery that helps electricity move between parts. This segment says the “true solid-state” definition depends on how much liquid electrolyte is still present.
The Chrysler Airflow is a new crossover SUV from Chrysler. A “CUV” is basically a car-like SUV, and this one is planned to be built in the U.S. at a specific assembly plant.
CUV means “crossover utility vehicle.” It’s a type of SUV that’s built on a car platform, so it usually drives more like a regular car than a traditional truck-based SUV.
The Chevrolet Equinox is a small SUV meant for everyday driving and family use. The podcast is specifically talking about an all-electric version called the Equinox EV, with production planned to begin in a new location. That means it will run on electricity instead of gasoline.
“BEV platform” means the car’s basic design is built specifically for electric vehicles. Moving from one platform to another usually means the next model can be engineered more efficiently for EVs.
The Ford Bronco is Ford’s off-road SUV. They’re talking about a new production program starting in 2030, and it will still use the same underlying platform while being built in Michigan.
LIVE
This is AutoLine Daily, the show dedicated to enthusiasts of the global automotive industry.
The ACEA reported that European new car sales in May hit 1.1 million units, up 3.6 percent.
But virtually all of that increase came from Chinese automakers.
Some European brands like Fiat, Mini and Audi had a good month, but all the major European
automotive groups, except for BMW, saw their sales drop.
Meanwhile, Chinese automakers posted a 63 percent increase in sales, capturing nearly
9 percent of the market.
Tesla also had a blowout month, with sales skyrocketing almost 108 percent.
And that's because sales of BEV shot up 39 percent across the continent, as more and
more Europeans decided to power their cars with electrons instead of hydrocarbons.
EVs captured 23 percent market share, meaning nearly one out of four new cars is fully electric.
As for other electrified models, sales of Pijas were up 13 percent and hybrids were up 8 percent.
Nissan shareholders aren't happy with the company.
Of the nine major Japanese automakers, Nissan now ranks sixth in terms of market cap,
after recently being surpassed by a Suzu.
Reports say new CEO Ivan Espinosa had difficulty at times keeping order at the company's general
meeting, with one shareholder even proposing to elect indicted and fugitive former executive
Carlos going back onto the board of directors.
While that was shot down, another proposal was partially approved, which will see the
election of 11 board directors instead of the 12 that Nissan wanted.
The one person rejected was Motu Nagai, who is being held accountable for his role in hiring
former CEO Makoto Yuchida, who is taking a lot of the blame for the company's current performance.
Notably, Renault, which owns a 17 percent stake in Nissan, reportedly abstained from backing Nagai.
In an effort to keep the meeting moving forward, Espinosa highlighted the company's recovery plan,
which includes reducing variable fixed and development costs, as well as job cuts and
plant closings to improve efficiency. Nissan says it will close seven plants,
bringing its total to 10 by the end of its 2027 fiscal year.
As we reported yesterday, the auto industry is facing another chip shortage,
and a new report from consulting firm Kearney shows just how much it's having an impact on
automakers. Prices for what are called DRAM memory chips skyrocketed 450 percent from
September of 2025 to January of this year. DRAM is needed to enable OTA updates,
ADAS, TAC, autonomy, infotainment, and other features. Automakers now have to compete with
AI companies, which use the chips to help power their data centers. And that's causing a shortage
and driving up prices. GM Ford and Honda have reported losses of hundreds of millions of dollars
because of the DRAM shortage. And automakers won't see any relief anytime soon. Three chip makers
control 88 percent of the global DRAM market, and because of that leverage, they're setting up
long-term contracts with automakers at higher prices. 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.com.
Investors are hot on the trail of autonomous startups. Waymo is already valued at $126
billion, but it's still closely held by Alphabet and is not publicly traded. So investors looking
for a pure AV play are chomping at the bit to get in on an IPO from Chinese startup Momenta.
It's already valued at $9 billion and has a blue-chip list of backers,
including General Motors, Toyota, and SAIC. It also has partnerships with Uber and Mercedes-Benz.
Our friends at Caresoft told us two years ago that Momenta was the best Chinese company when it came
to autonomous technology. And if you want to know why investors are so hungry to invest in AVs,
you ought to check out the latest Auto Line After Hours with Larry Burns, the former head of R&D at
GM. He says the autonomous revolution is coming and coming a lot faster than most people realize.
Chinese automaker Cherry must really see growth potential in the pickup truck market.
It recently launched a new commercial division called Rely, and last week we reported how the
Cherry brand also revealed a new pickup called the Stockman. Now Cherry's Joutour brand will enter
the truck market as well and just showed off the F700, which is an 800-volt plug-in hybrid truck
and looks like it's geared towards off-road enthusiasts. We suspect the F700 will be sold
outside of China like Cherry's other pickups, going to markets like Australia, the Middle East,
and Africa, where trucks are quite popular. Lots of Chinese battery makers are bragging that they'll
have solid-state batteries going into production. But Chinese scientists have warned that true
solid-state batteries will not reach mass production until the 2030s. And just to make sure everyone
knows what a true solid-state battery is, China is officially defining them as any battery containing
less than 5% liquid electrolyte. Anything over that is defined as a hybrid system.
A battery must also maintain specific thermal stability under vacuum to be classified as true
solid-state. We've got some important new product intel thanks to our friends at AutoForcast Solutions.
The Chrysler Airflow, a new mid-size CUV codenamed C4U, will be built at the Belvedere Assembly
plant in Illinois. Next up, the new version of the Chevrolet Equinox EV is scheduled to go
into production in Ramos Ariespe, Mexico in February of 2029. It moves off of the BEV3 platform
and onto a new one codenamed BEVN. And a new Ford Bronco will come online in January of 2030.
It stays on the same platform, but the program codename changes to U825, and it will continue
to be made at Ford's Michigan Assembly plant. But that's a wrap for this show.
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About this episode
BEV momentum keeps building in Europe, with EVs capturing 23% of new-car sales and BEVs “shot up 39 percent across the continent.” The show also connects that shift to cost pressures, noting DRAM prices “skyrocketed 450 percent” and that memory is needed for features like OTA updates and ADAS. On the product front, Chrysler’s Airflow heads to Belvidere, while China’s “true” solid-state definition hinges on electrolyte content. Investors meanwhile stay focused on autonomy plays like Waymo and Momenta.
- Chinese, Tesla Drive Strong EU Sales - 23% of New European Cars Now BEVs - Nissan Shareholders Not Happy - DRAM Chip Prices Up 450% - Investors Eager to Spend on Momenta - Chery Sees Real Growth in Pickups - China Defines True Solid-State Batteries - Chrysler Airflow Headed to Belvidere
