AD #4331 - It’s Official: U.S. Will Not Renew USMCA; U.S. Car Sales Only Up 0.4%; BYD Wants Legacy EU Plant
About this episode
Major trade disruptions loom as the U.S. decides not to renew the USMCA, opting instead for annual reviews that threaten automotive supply chains. Meanwhile, U.S. car sales remain flat, though hybrids are booming while luxury brands stumble. Globally, BYD eyes legacy European factories to bypass tariffs, Volkswagen considers selling soccer team stakes to cut costs, and China implements strict new EV battery safety standards. Plus, a viewer helps the Henry Ford Museum secure a rare 1991 Saturn SE, and Toyota safety researcher Jason Hallman previews his upcoming appearance.
Magna
"Just weeks ago, Swami Kothagiri, the CEO of Magna, said he wanted a new USMCA agreement to provide stability and visibility so Magna would know when and where to invest its capital."
A massive Canadian company that makes parts for almost every major car brand. They are so big they even build entire cars for other companies in their special factories.
Magna International is a Canadian mobility technology company and one of the largest automotive suppliers in the world. In addition to manufacturing components, they also assemble complete vehicles under contract for other automakers, such as the Mercedes-Benz G-Class and Jaguar I-Pace.
Swami Kothagiri
"Just weeks ago, Swami Kothagiri, the CEO of Magna, said he wanted a new USMCA agreement to provide stability and visibility so Magna would know when and where to invest its capital."
The big boss of a massive company called Magna that designs and builds parts (and sometimes entire cars) for famous brands like BMW, Mercedes, and Ford.
Swami Kothagiri is the Chief Executive Officer of Magna International, one of the world's largest automotive suppliers. He has spent over two decades at the company in various engineering and leadership roles before becoming CEO in 2021.
Cadillac
"One interesting point about Cadillac. Its sales were down 19%, but its EVs were up 3.5%, and 34% of every Cadillac sold wasn't an electric."
A famous American luxury car brand owned by General Motors. It used to be known for giant, comfortable land yachts but now makes fast sports sedans and modern electric SUVs.
Cadillac is General Motors' luxury flagship brand, established in 1902 and named after the founder of Detroit. Historically known for large, opulent cruisers, the brand has transitioned toward high-performance sedans (Blackwing) and a rapidly expanding electric vehicle lineup.
CATL
"CATL, the Chinese company that dominates the battery industry, says that mining raw materials, not refining them, is the biggest bottleneck it faces."
A giant Chinese company that is the world's biggest maker of batteries for electric cars. If you buy an EV today, there is a very high chance its battery was made by CATL.
Contemporary Amperex Technology Co. Limited (CATL) is a Chinese battery manufacturer and technology company founded in 2011. It is the world's largest producer of lithium-ion batteries for electric vehicles, supplying major automakers globally.
sodium batteries
"It's dealing with a shortage of lithium that's driving prices up, and that's why it's so keen on making sodium batteries."
A new type of battery that uses cheap, abundant salt (sodium) instead of expensive and hard-to-find lithium. They don't hold quite as much energy as lithium batteries, but they are much cheaper to make.
Sodium-ion batteries are an emerging battery technology that uses sodium ions instead of lithium ions to store and release energy. While they have lower energy density than lithium-ion batteries, they are significantly cheaper, safer, and utilize abundant, easily sourced raw materials.
DTCs
"Intrepid's Neovide Cloud Platform helps manufacturers quickly identify diagnostic trouble codes and defects by pinpointing which vehicles have specific software versions. This allows them to isolate non-compliant vehicles in real time using analytics, part numbers, DTCs, and organized, secure cloud-based data."
Special codes that your car's computer generates when something goes wrong, which triggers the 'Check Engine' light. Mechanics plug a scanner into the car to read these codes and figure out what needs to be fixed.
Diagnostic Trouble Codes (DTCs) are alphanumeric codes generated by a vehicle's onboard diagnostics (OBD) system when it detects a malfunction. These codes help mechanics and engineers pinpoint specific issues with sensors, emissions, or mechanical components.
robo-taxis
"Waymo seems to be in the lead with robo-taxis, but that doesn't mean it's going to keep the lead. More and more robo-taxi companies are expanding their services into more cities..."
A taxi that drives itself using computers, cameras, and sensors instead of having a human driver behind the wheel.
A robotaxi is an autonomous, self-driving passenger vehicle operated by a ridesharing service. These vehicles use a suite of sensors, cameras, radar, and lidar combined with artificial intelligence to navigate public roads without a human driver.
NHTSA
"Another issue we're trying to scale is the lack of federal regulations for robo-taxis, though NHTSA is working on that."
The U.S. government agency in charge of keeping roads safe. They are the ones who order car companies to fix safety defects (recalls) and perform crash tests.
The National Highway Traffic Safety Administration (NHTSA) is an agency of the U.S. federal government responsible for writing and enforcing vehicle safety standards. They oversee safety recalls, crash testing, and regulations for emerging technologies like autonomous vehicles.
BYD
"BYD says it's nearing a decision on a second plant in Europe. The automakers head of European operations, Alfredo Altavela..."
A massive Chinese company that has quickly become one of the biggest makers of electric and hybrid cars in the world, competing directly with Tesla.
Build Your Dreams (BYD) is a Chinese multinational manufacturing company that has grown to become one of the world's largest plug-in electric vehicle manufacturers. Originally a battery maker, the company is known for its vertically integrated supply chain and competitive pricing.
Alfredo Altavilla
"The automakers head of European operations, Alfredo Altavela, who used to run Fiat Chrysler's European operations, says it's looking at sites in France and Spain..."
A high-level car industry boss who used to run European operations for Fiat Chrysler and was hired by Chinese EV giant BYD to help them build and sell cars in Europe.
Alfredo Altavilla is an experienced automotive executive who previously served as the Chief Operating Officer of Fiat Chrysler Automobiles (FCA) Europe. He was appointed by BYD to lead its European expansion efforts and navigate local manufacturing strategies.
thermal runaway
"The standard requires no fire or explosion within a two-hour period after thermal runaway. Smoke may not cause any harm to passengers."
A scary situation where a battery gets too hot, causing a chain reaction that makes it get hotter and hotter until it bursts into flames or explodes.
Thermal runaway is a dangerous chain reaction in a battery cell where an increase in temperature releases energy, which further increases the temperature, potentially leading to a catastrophic fire or explosion. It is a primary safety concern in lithium-ion battery design.
Chery
"Chinese automaker, Cherry, says its new Rhino batteries meet the standard, and it's so confident in their safety that it's offering a lifetime warranty..."
A major Chinese car company that sells vehicles all over the world and is known for offering long warranties on its electric cars.
Chery Automobile is a state-owned Chinese automobile manufacturer founded in 1997. It is one of China's largest passenger car exporters and is known for its rapid development of electric vehicle platforms and battery technologies.
Volkswagen
"Volkswagen is so desperate to slash costs, reportedly it wants to cut 100,000 jobs and close four plants in Germany, and it's not stopping there."
A massive German car company that is one of the biggest in the world. Besides Volkswagen cars, they also own luxury brands like Audi and Porsche.
Volkswagen is one of the world's largest automotive conglomerates, headquartered in Wolfsburg, Germany. The group owns numerous iconic brands including Audi, Porsche, Bentley, Lamborghini, and Ducati, and is currently navigating massive restructuring and cost-cutting measures.
Henry Ford Museum
"The museum has an incredible collection of cars, but in the course of the conversation, we asked Matt if there was something out there that he really wanted to add to the collection."
A famous museum in Michigan founded by Henry Ford that houses some of the most important cars and inventions in American history.
Located in Dearborn, Michigan, the Henry Ford Museum of American Innovation is a massive indoor and outdoor history museum complex. It houses an unparalleled collection of historic vehicles, including presidential limousines, land-speed record cars, and early production models.
Matt Anderson
"Last year, we had Matt Anderson, the transportation curator of the Henry Ford Museum, on Outline After Hours."
The expert in charge of the car and transportation collection at the famous Henry Ford Museum, deciding which historic cars get added to the museum.
Matt Anderson is the curator of transportation at the Henry Ford Museum in Dearborn, Michigan. He is responsible for managing and expanding one of the world's premier collections of historically significant automobiles and transport artifacts.
Saturn
"He really wanted one of the first Saturns ever built because it was an important part of the history of the industry."
A car brand started by General Motors in the 1980s to try and beat popular Japanese imports. They were famous for friendly dealerships and cars with plastic sides that wouldn't dent, but the brand was shut down in 2010.
Saturn was a subsidiary of General Motors established in 1985 as a 'different kind of car company' to compete with Japanese imports. Known for its unique plastic body panels, no-haggle dealer pricing, and distinct corporate culture, the brand was discontinued in 2010 during GM's bankruptcy restructuring.
1991 Saturn SL
"We put him in touch with Matt, and I'm now happy to report that the Henry Ford Museum has a 1991 Saturn SE in its collection."
A line of small cars made by General Motors under the Saturn brand in the 1990s. They were famous because their side panels were made of plastic that wouldn't dent when hit by shopping carts.
The Saturn SL was the inaugural compact sedan from General Motors' Saturn subsidiary, launched for the 1991 model year. It was famous for its dent-resistant polymer plastic body panels and GM's attempt to create a 'different kind of car company' with a no-haggle buying process to battle Japanese imports.
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