AD #4330 - Military Procurement Squeezing Auto Components; EREV Sales Crater In China; Polestar U.S. Dealers Likely to Sue Company
About this episode
Global military procurement is squeezing automotive component supply chains as defense startups snap up ADAS chips. Meanwhile, extended-range electric vehicle (EREV) sales are cratering in China due to rapid charging expansion and falling battery costs. In the U.S., Polestar dealers face a bleak future and potential lawsuits over upcoming Chinese software bans, while Hyundai and Kia celebrate massive hybrid-driven sales gains. Additionally, Toyota partners with Joby Aviation on air taxis, CATL expands its battery-swapping network, and BMW reveals the high-tech, high-voltage fifth-generation X5.
ADAS
"...by taking off the shelf tech like the chipsets and sensors that are used by automakers for their eight ass or Advanced driver Assistant systems."
The collection of safety features in modern cars—like automatic braking, blind-spot monitoring, and lane steering—that help prevent accidents.
Advanced Driver Assistance Systems (ADAS) are electronic systems in vehicles that use sensors, cameras, and radar to assist the driver. Examples include lane-keep assist, adaptive cruise control, and automatic emergency braking.
SAAR
"June sales are forecasted to be up four to eight percent. And the SAR is expected to hit somewhere between sixteen point one and sixteen point five million units..."
A math formula that takes one month of car sales and predicts how many cars will be sold in the entire year, adjusting for the fact that people buy more cars in certain seasons.
Seasonally Adjusted Annual Rate (SAAR) is a statistical method used in the automotive industry to project full-year vehicle sales based on a single month's data, accounting for seasonal fluctuations in buying habits.
Dodge Ram
"...nce other automakers start to report their sales. RAM is supposed to come out with a range extender pic..."
The Ram is a large, popular pickup truck built for carrying heavy loads and driving on tough terrain. The specific model being discussed uses a special system where the truck is powered by electric motors, but carries a built-in gas engine that acts as a generator to recharge the battery on the go. This means you can drive it like an electric car but easily fill it up with gas when you cannot find a charging station.
The Ram pickup (formerly sold under the Dodge brand) is a staple of the full-size truck market, highly regarded for its towing capability and class-leading interior comfort. The brand is currently generating significant buzz with the introduction of the Ram 1500 Ramcharger, a unique electric truck equipped with an onboard gasoline generator to eliminate range anxiety. This range-extended model is designed to offer the benefits of electric driving without the charging limitations typically faced when towing heavy loads.
EREV
"RAM is supposed to come out with a range extender pickup this year, for it is said to be working on a steel bodied F one fifty e REV at its Tennessee truck plant."
An electric car that also has a small gas engine on board. The gas engine never turns the wheels; it only runs to generate electricity to charge the battery so you can keep driving without stopping to plug in.
An Extended-Range Electric Vehicle (EREV) is an electric vehicle equipped with an auxiliary power unit (typically a small internal combustion engine) that acts solely as a generator to recharge the battery when it runs low, never directly driving the wheels.
Ford F-150 EREV
"...for it is said to be working on a steel bodied F one fifty e REV at its Tennessee truck plant."
An electric version of the popular Ford F-150 truck that also has a small gas engine on board. The gas engine doesn't turn the wheels; it just acts as a generator to recharge the battery so you don't run out of power on long trips.
The Ford F-150 EREV is an upcoming version of Ford's iconic full-size pickup that utilizes an onboard gasoline generator to charge its battery pack, eliminating range anxiety while towing. Unlike traditional hybrids, the gas engine does not directly drive the wheels, acting solely as a range extender.
BEV
"...the price of batteries has fallen so much that erevs are no longer cheaper than BEVs..."
A 100% electric car that has to be plugged into an outlet or charging station to get power, with no gas engine at all.
A Battery Electric Vehicle (BEV) is a fully electric vehicle that runs entirely on electricity stored in a battery pack, with no internal combustion engine or alternative fuel source.
eVTOL
"Vtalls, or vertical takeoff and landing vehicles, could be the next big thing in transportation, and a number of automakers want a piece of the action."
An electric aircraft that can take off and land straight up and down like a helicopter, designed to fly people over city traffic like a flying taxi.
An electric Vertical Takeoff and Landing (eVTOL) aircraft uses electric power to hover, take off, and land vertically, aiming to provide rapid, localized aerial transit (often called air taxis) without requiring a traditional runway.
Battery Swapping
"With fast charging in China that can fill up above and five minutes becoming common, you'd think that battery swapping would become passe, but CATL, the largest TV battery maker in the world, is aggressively expanding its battery swapping network."
Instead of plugging your electric car in and waiting for it to charge, you pull into a station where a machine swaps your empty battery for a fully charged one in just a few minutes.
An alternative to fast charging where a depleted electric vehicle battery is mechanically removed and replaced with a fully charged one at an automated station, typically taking under five minutes.
CATL
"...but CATL, the largest TV battery maker in the world, is aggressively expanding its battery swapping network."
A massive Chinese company that is the world's biggest maker of batteries for electric cars, supplying batteries to brands like Tesla, BMW, and Ford.
Contemporary Amperex Technology Co. Limited (CATL) is a Chinese battery manufacturer and technology company founded in 2011, specializing in the manufacturing of lithium-ion batteries for electric vehicles and energy storage systems. It is the world's largest EV battery producer.
Local Content Regulations
"The ACEA, which represents all the car companies in Europe, is telling the EU that it should allow the UK, Turkey and Morocco to qualify for local content regulations..."
Rules made by governments that say a car must be built using a certain amount of parts made locally in that region to get tax breaks or avoid extra fees.
Trade policies requiring a certain percentage of a vehicle's parts, assembly, or value to originate from within a specific country or trade bloc to qualify for tax incentives, tariff exemptions, or government purchase programs.
BMW X5
"BMW launched its fifth gen X five yesterday. It's built off the company's NEU class platform, which accommodates ICE, PHEV and HAVE powertrains."
The newest version of BMW's popular luxury SUV. It is designed to be sold as a gas car, a hybrid, or a fully electric vehicle, with the electric version having a huge battery for long driving range and very fast charging.
The fifth-generation BMW X5 is a mid-size luxury SUV built on the flexible Neue Klasse platform, accommodating gas, plug-in hybrid, and battery-electric powertrains. The EV version features a massive 144 kWh battery pack with 120mm cylindrical cells, delivering up to 435 miles of range and utilizing an 800-volt architecture.
BMW Neue Klasse Platform
"It's built off the company's NEU class platform, which accommodates ICE, PHEV and HAVE powertrains."
BMW's brand-new design blueprint for its future cars, built from the ground up to support advanced electric vehicle technology while still allowing for gas and hybrid models.
BMW's next-generation modular vehicle architecture designed primarily for electric vehicles but capable of accommodating internal combustion and plug-in hybrid powertrains. It features an 800-volt electrical system, highly efficient cylindrical battery cells, and advanced software integration.
Bidirectional Charging
"...offers fast charging thanks to its eight hundred volt electric architecture, and provides for bi directional charging."
A feature that lets an electric car act like a giant backup battery, allowing you to use the power stored in your car to run your house during a blackout or power camp equipment.
A technology that allows an electric vehicle to not only draw power from the grid to charge its battery, but also discharge that stored energy back to power a home (V2H), appliances (V2L), or the electrical grid (V2G).
BMW Spartanburg Plant
"By the way, the X five is made at BMW's plant in Spartanburg, South Carolina. Not only is it BMW's largest plant in the world on a dollar value basis, it's the largest exporter of vehicles in the United States."
A massive factory in South Carolina where BMW builds almost all of its popular SUVs and exports them to countries all over the world.
BMW's largest manufacturing facility globally, located in Greer/Spartanburg, South Carolina. It is the primary production hub for BMW's 'X' line of SUVs and is the largest exporter of vehicles by value in the United States.
Polestar
"Full Star dealers are devastated that the company will be prohibited from selling cars in the US with the twenty twenty seven model year."
A premium electric car brand that started out making fast versions of Volvo cars and now makes its own stylish, high-tech electric vehicles.
An electric performance car brand jointly owned by Volvo Cars and Geely Holding. Originally Volvo's racing partner and performance division, it was spun off as an independent EV manufacturer focused on minimalist design and high-end technology.
Polestar 3
"Even though the Polestar three is made at the Volvo plant in South Carolina, there are thirty two Polestar dealers in the United States..."
A sleek, fully electric luxury SUV made by Polestar, a brand closely related to Volvo. It is designed to offer high performance and modern technology.
The Polestar 3 is an all-electric mid-size luxury crossover SUV that serves as the brand's first purpose-built EV SUV, sharing its platform with the Volvo EX90. It is manufactured in both Chengdu, China, and Ridgeville, South Carolina, to serve global markets.
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