AD #4329 - Trump To Dump USMCA Tomorrow; Slate Destination Charge: $1,400?; More Automakers Want Aluminum Wiring
About this episode
Volkswagen is facing a massive corporate showdown as CEO Oliver Blume attempts to bypass labor unions by splitting the company to force through critical restructuring. Meanwhile, the North American auto industry braces for chaos with the U.S. poised to exit the USMCA. Plus, Stellantis, Ferrari, and BMW are following Tesla's lead by adopting cheaper, lighter aluminum wiring over copper. The episode also covers Stellantis's production struggles with the Fiat 500, plans to import Chinese-built Jeeps to Europe, and a sneak peek at the next-generation Nissan Frontier.
Volkswagen Group
"The situation at the Volkswagen Group is going from bad to worse. Sales have plummeted globally. Profits have plunged to dangerous levels."
A massive global car company from Germany that owns brands like VW, Porsche, and Audi. They are currently having a hard time making money and are trying to figure out how to cut costs.
One of the world's largest automakers, parent company to brands like Volkswagen, Audi, Porsche, and Skoda. The company is currently facing severe financial headwinds, excess manufacturing capacity, and intense pressure to restructure its operations in Germany.
Oliver Blume
"VW's CEO, Oliver Blumma, wants to slash jobs and close plants in Germany, but his supervisory board, half of which is represented by labor and local politicians, are dead set against it..."
The big boss (CEO) of the Volkswagen Group. He is trying to make big changes to save the company money, but he is running into resistance from workers and politicians.
The CEO of both the Volkswagen Group and Porsche AG. He is currently tasked with navigating VW's massive corporate restructuring, which involves highly contested proposals to close factories and cut jobs in Germany.
Volkswagen Law
"They even call that the Volkswagen Law or the Volkswagen Act. Well, Oliver Blumma wants to pull an end, run around it. He wants to split the group into a company that makes cars and a separate one that makes components."
A special law in Germany that gives workers and local politicians a huge say in how Volkswagen is run. It makes it very hard for the company's bosses to close factories or lay off workers without their permission.
A unique German federal law enacted in 1960 that governs the privatization of Volkswagen. It mandates that any major corporate decisions (like plant closures) require an 80% majority vote, effectively giving the state of Lower Saxony and labor unions veto power.
USMCA
"...tomorrow that the United States is pulling out of the USMCA free trade agreement, but no one knows what comes next."
A trade agreement between the US, Mexico, and Canada that decides how cars and car parts can be shipped across borders without paying extra taxes. Changes to this agreement make it hard for car companies to plan where to build things.
The United States-Mexico-Canada Agreement, a free trade agreement that succeeded NAFTA in 2020. It establishes strict rules of origin for automotive manufacturing, requiring a high percentage of a vehicle's components to be made within North America to qualify for tariff-free trade.
Truck Slate Truck
"... Everybody pretty much knows what the cost of the Slate truck and SUV will be. 25 grand for the base model, 30 ..."
A truck is a vehicle with a passenger cabin in the front and an open cargo box in the back. It is primarily used for carrying heavy loads, towing, and outdoor work.
A pickup truck is a light-duty vehicle featuring an enclosed cab and an open rear cargo bed designed for hauling and towing. The automotive industry is currently seeing a wave of new electric truck platforms from both legacy brands and startups aiming to lower the entry price of utility EVs.
Scout Motors
"Everybody pretty much knows what the cost of the Slate truck and SUV will be. 25 grand for the base model, 30 for the SUV, and 32 for the fastback. But what's the destination charge going to be? Slate hasn't announced that yet, but Ryan Green, the CFO of Slate..."
An old American brand of rugged trucks that is being brought back to life by Volkswagen to make new electric SUVs and pickup trucks.
An American off-road vehicle brand originally created by International Harvester, recently revived by the Volkswagen Group as an independent electric vehicle manufacturer. (Note: Transcribed as 'Slate' in the audio).
Tesla Model 30
"Everybody pretty much knows what the cost of the Slate truck and SUV will be. 25 grand for the base model, 30 for the SUV, and 32 for the fastback. But what's the destination charge going to be?"
fastback
"25 grand for the base model, 30 for the SUV, and 32 for the fastback."
A car design where the roof slopes gently all the way down to the back bumper in a smooth line, making the car look sporty and slide through the air more easily.
An automotive body style defined by a single continuous slope from the roofline down to the rear bumper. This design is highly favored in modern electric vehicles to reduce aerodynamic drag and improve driving range.
destination charge
"But what's the destination charge going to be? Slate hasn't announced that yet, but Ryan Green, the CFO of Slate, told us it would be the standard destination charge of any EV."
A mandatory delivery fee you have to pay when buying a brand-new car to cover the cost of shipping it from the factory to the dealership.
A mandatory fee added to the manufacturer's suggested retail price (MSRP) of a new vehicle to cover the cost of shipping it from the factory to the dealership. This fee is regulated by the government and is non-negotiable for the buyer.
Chevrolet Bolt EV
"So we looked up what Nissan charges for the Leaf and what Chevrolet charges for the Bolt."
A small, practical electric car made by Chevrolet that offered a lot of driving range for a relatively low price.
An all-electric subcompact hatchback produced by General Motors under the Chevrolet marque, offering long-range electric driving at an affordable price point. It served as GM's first mass-market long-range EV, utilizing a flat floor battery pack design.
Nissan Leaf
"So we looked up what Nissan charges for the Leaf and what Chevrolet charges for the Bolt."
One of the very first affordable electric cars sold to the public. It's a small hatchback that has been around for over a decade.
A compact five-door hatchback battery electric vehicle (BEV) introduced by Nissan in 2010, historically significant as one of the first mass-market electric cars. It is famous for its early adoption of electric propulsion without a liquid-cooled battery pack.
Bridgestone Potenza
"Bridgestone Patenza tires, improved grip and wet conditions."
A famous line of high-performance tires made by Bridgestone, designed to help sports cars grip the road better, even when it's raining.
A high-performance line of tires produced by Bridgestone, designed for sports cars and performance vehicles to provide enhanced grip and handling, especially in wet conditions.
Stellantis
"Stellantis promised the Italian government it would do everything in its power to boost car production in Italy, but things are not going to plan."
A massive global car company that was formed when Fiat Chrysler merged with Peugeot. They own famous brands like Jeep, Ram, Dodge, and Fiat.
A multinational automotive manufacturing corporation formed in 2021 by the merger of Fiat Chrysler Automobiles (FCA) and the PSA Group, housing brands like Jeep, Ram, Fiat, Peugeot, and Maserati.
Mirafiori plant
"Stella is extending the summer production shutdown of the Fiat 500 at its Mirta Frioriti plant in Italy."
A historic and very large car factory in Turin, Italy, where Fiat builds its cars.
Fiat's historic and largest manufacturing facility located in Turin, Italy. Opened in 1939, it currently produces vehicles like the Fiat 500e and Maserati models, serving as a symbol of Italian industrial automotive heritage.
Fiat 500
"Stella is extending the summer production shutdown of the Fiat 500 at its Mirta Frioriti plant in Italy."
A tiny, cute Italian city car. The newest version is fully electric and designed for driving around tight European cities.
A retro-styled city car produced by the Italian manufacturer Fiat, famous for its iconic, compact Italian design. The modern electric version (500e) is built at the Mirafiori plant in Turin, Italy, and serves as a stylish urban commuter.
Dongfeng
"...but in Europe, Stellantis is going to start selling Jeeps made by Dongfeng in Wuhan, China."
A large, state-owned Chinese car company that builds vehicles for both Chinese and global brands.
A major Chinese state-owned automobile manufacturer headquartered in Wuhan, China. It is one of the 'Big Four' Chinese automakers and partners with various global brands for joint ventures and contract manufacturing.
Jeep Avenger
"Jeep currently sells two models in Europe, the Avenger Encompass, but it plans to expand that lineup to six models..."
A very small SUV made by Jeep that is sold in Europe. It is Jeep's first fully electric vehicle.
A subcompact crossover SUV produced by Jeep primarily for the European market, offered with electric, hybrid, and petrol powertrains. It is notable as Jeep's first-ever fully electric vehicle, designed specifically for tight European streets.
Jeep Compass
"Jeep currently sells two models in Europe, the Avenger Encompass, but it plans to expand that lineup to six models..."
A medium-sized SUV made by Jeep that is designed for daily driving but can still handle some light off-roading.
A compact crossover SUV produced by Jeep, positioned between the smaller Renegade/Avenger and the larger Cherokee. It is known for offering Jeep's signature off-road capability in a more road-oriented, daily-drivable package.
Dodge Avenger
"...a. Jeep currently sells two models in Europe, the Avenger Encompass, but it plans to expand that lineup to ..."
The Dodge Avenger is a retired four-door family sedan made by the American brand Dodge. It was designed to look sporty on the outside while functioning as a standard, budget-friendly everyday car.
The Dodge Avenger is a midsize sedan that was produced by Dodge until its discontinuation in 2014. It was styled to resemble a scaled-down, aggressive muscle car, sharing its front-wheel-drive platform with the Chrysler 200 and Sebring.
involution
"China is worried that the price war that shows no signs of going away will hollow out its automotive industry. It's what China calls involution."
A term used in China to describe a situation where competition gets so fierce and cutthroat that companies end up hurting themselves and their suppliers just to survive.
A term used in the Chinese automotive industry (locally called 'neijuan') to describe intense, hyper-competitive price wars and market saturation that force companies to cut costs to unsustainable levels, potentially harming the industry's long-term health.
aluminum wiring
"Tesla is the first automaker that we're aware of that started using aluminum wiring for high voltage power. Now, Stellantis, Ferrari, and BMW are starting to use it too."
Using aluminum instead of copper for the electrical wires in a car. It is cheaper and lighter, but harder to work with because aluminum is stiffer and can corrode more easily than copper.
An alternative to traditional copper wiring in automotive electrical systems, particularly for high-voltage EV applications, offering significant weight and cost savings but requiring specialized termination techniques to prevent corrosion and resistance issues.
wiring harness
"Instead of having a floppy wiring harness made of copper to install in a car, you can make rigid aluminum cables..."
The bundle of wires that runs throughout a car to connect the battery to things like the lights, engine, and computer screens.
An organized assembly of cables, wires, and connectors that transmits electrical power and signals throughout a vehicle, acting as its central nervous system.
Nissan Frontier
"...we've got some future product intel from our friends at Auto Forkast Solutions on the Nissan Frontier pickup truck. The current model is doing quite well in the U.S. market..."
A popular mid-sized pickup truck made by Nissan that is known for being tough, reliable, and simpler than some of its high-tech competitors.
A mid-size pickup truck produced by Nissan for the North American market, known for its rugged body-on-frame construction and utility. It is famous for its long-running second generation (D40) and its durable, straightforward mechanical design.
Canton, Mississippi assembly plant
"Auto Forkast Solutions reports it will continue to be built at Nissan's assembly plant in Canton, Mississippi..."
A large factory in Mississippi where Nissan builds its pickup trucks and cars for the American market.
Nissan's major U.S. manufacturing facility, which opened in 2003 and produces vehicles like the Frontier, Titan, and Altima.
diagnostic trouble codes
"Intrepid's Neovie Cloud Platform helps manufacturers quickly identify diagnostic trouble codes and defects by pinpointing which vehicles have specific software versions."
The error codes that your car's computer generates when something goes wrong, which turn on the 'check engine' light and tell a mechanic what needs to be fixed.
Standardized codes generated by a vehicle's on-board diagnostics (OBD) system when it detects a malfunction in any of the vehicle's subsystems, helping technicians identify issues.
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