Oct. 16, 2025 | BMW faces chip supply threat; August EV surge offers insights
About this episode
BMW faces potential chip supply issues due to US-China export restrictions, raising concerns about production continuity. Meanwhile, Waymo plans to launch its driverless ride-hailing service in London next year. The episode also delves into a significant 24% increase in August EV registrations, driven by consumers rushing to purchase before federal tax credits expired. Insights from industry experts highlight the contrasting performance of mainstream versus luxury EV brands, with a focus on the impact of incentives and market dynamics on future sales.
U.S. and China export restrictions threaten BMW’s chip supply. Vehicle cybersecurity concerns grow. Plus, Automotive News’ Laurence Iliff breaks down August EV registration data and what it could reveal about future sales.
Mercedes-Benz
"...Mercedes Ben said it was monitoring the situation..."
Mercedes-Benz is another famous car brand from Germany that makes luxury cars. They are known for their advanced technology and high-quality vehicles.
Mercedes-Benz is a German automotive brand known for luxury vehicles, buses, and trucks. It is recognized for its innovation and engineering excellence in the automotive industry.
Volkswagen Group
"...Volkswagen Group said the issue was not affecting its production..."
Volkswagen Group is a big car company from Germany that owns many brands like Volkswagen and Audi. They make a lot of different types of cars.
Volkswagen Group is a major German automotive manufacturer that owns several brands, including Volkswagen, Audi, Porsche, and more. It is one of the largest car manufacturers in the world.
Waymo
"...Waymo plans to launch its driverless ride-hailing service in London next year..."
Waymo is a company that works on self-driving cars. They are trying to make cars that can drive themselves without a person inside.
Waymo is a self-driving technology company and a subsidiary of Alphabet Inc. It focuses on developing autonomous vehicles and driverless ride-hailing services.
software-defined vehicles
"...the biggest risk to the successful rollout of software-defined vehicles in the next five to 10 years."
Software-defined vehicles are cars that use a lot of computer software to work. This means they can have features like self-driving and internet connectivity, but they also need to be protected from hackers.
Software-defined vehicles are cars that rely heavily on software for their operation, including features like autonomous driving, infotainment systems, and connectivity. This trend increases the importance of cybersecurity.
cybersecurity
"...developers think cybersecurity vulnerabilities are the biggest risk to the successful rollout of software-defined vehicles..."
Cybersecurity is about keeping computers and networks safe from bad people trying to steal information or cause problems. For cars, it means protecting them from hackers.
Cybersecurity refers to the practice of protecting systems, networks, and programs from digital attacks. In the automotive context, it involves securing vehicles against hacking and data breaches.
OEMs
"Do you believe the legacy OEMs are falling into a trap? They've got to find a way to in some ways build new airplane while they're still in flight."
OEM means Original Equipment Manufacturer, which is just a fancy way of saying the company that makes the car or its parts. For example, Ford is an OEM for Ford cars.
OEM stands for Original Equipment Manufacturer, referring to companies that produce parts and equipment that may be marketed by another manufacturer. In the automotive context, it typically refers to car manufacturers themselves.
EV registrations
"EV registrations jumped 24% from a year earlier in August to about 138,000 and captured more than 10% of the new car market in the US."
EV registrations are simply the number of electric cars that people have officially registered to drive. It shows how popular electric cars are becoming.
EV registrations refer to the number of electric vehicles that have been registered for use. This metric is important for understanding the growth of electric vehicle adoption in the market.
federal tax credits
"It's the latest evidence of a massive EV pull forward before federal tax credits expired at the end of September."
Federal tax credits are money the government gives back to you when you buy an electric car. This helps lower the price you pay for the car.
Federal tax credits for electric vehicles are incentives provided by the government to encourage the purchase of EVs. These credits can significantly reduce the overall cost of buying an electric vehicle.
Bmw I4
"It's time to get my BMW i4 right before the test goes away. It looks no."
The BMW i4 is a new electric car from BMW that looks like a sporty coupe. It's designed to be fast and efficient, using electricity instead of gasoline.
The BMW i4 is an all-electric gran coupe that combines the performance of a BMW with electric efficiency. It features a sleek design and advanced technology, making it a strong competitor in the electric vehicle market.
incentives
"I think that it also depends on the incentives that the automakers were putting on these cars."
Incentives are special deals or discounts that car companies offer to help sell their cars. They can make buying a car cheaper or more attractive.
Incentives in the automotive industry refer to financial offers or discounts provided by manufacturers or dealers to encourage sales, such as rebates, low-interest financing, or special lease terms.
Chevrolet Equinox
"...that just shot up the Honda Prolog, the Chevrolet Equinox, Hyundai Ionic 5. People were rushing in there fo..."
Hyundai Ionic 5
"You saw lots of volume models that were already doing well that just shot up the Honda Prolog, the Chevrolet Equinox, Hyundai Ionic 5."
The Hyundai Ioniq 5 is a new electric SUV from Hyundai. It has a unique look and is designed to be eco-friendly and high-tech.
The Hyundai Ioniq 5 is an all-electric compact crossover SUV that features a distinctive design and advanced technology, part of Hyundai's Ioniq electric vehicle lineup.
EVs
"What he was seeing was that the crazy lease deals were really on EVs in general. In particular, the volume EVs, the equinoxes and the prologues and the Ionic Vs."
EVs stands for electric vehicles. These cars run on electricity instead of gasoline, which can help reduce pollution and save on fuel costs.
EVs, or electric vehicles, are cars that are powered entirely by electricity rather than traditional gasoline or diesel engines. They are becoming increasingly popular due to their environmental benefits and advancements in battery technology.
Honda Prologues
"...particular, the volume EVs, the equinoxes and the prologues and the Ionic Vs. From that, you could get these ..."
The Honda Prologue is a new electric SUV that will run on electricity instead of gasoline. It's important because it shows Honda's plans to make more electric cars, which are better for the planet.
The Honda Prologue is an upcoming electric SUV that aims to compete in the growing electric vehicle segment. It is significant as it marks Honda's transition towards electrification and reflects the brand's strategy to offer more sustainable transportation options.
Toyota Corolla
"From that, you could get these cars for less than a Toyota Corolla lease."
The Toyota Corolla is a small car that many people trust because it's reliable and gets good gas mileage. It's often a popular choice for those looking for an affordable vehicle.
The Toyota Corolla is a compact car known for its reliability, fuel efficiency, and affordability. It has been one of the best-selling cars worldwide for many years.
Hyundai Elantra
"Hyundai, Alantra. He just saw these fantastic deals and he said that's where people are going to rush."
The Hyundai Elantra is a small car that is often chosen for its good price and gas mileage. It's a common choice for people who need a reliable vehicle without spending too much.
The Hyundai Elantra is a compact car known for its affordability, fuel efficiency, and modern design. It's popular among budget-conscious consumers looking for reliable transportation.
Tesla Model
"The Tesla Model Y, which did extremely well, had about $5,100 in incentives. That was about flat, but that's a very popular car."
The Tesla Model Y is an electric SUV made by Tesla. It's popular because it has a lot of space, good performance, and modern technology.
The Tesla Model Y is a compact electric SUV that has gained popularity for its performance, range, and technology features. It is part of Tesla's lineup of electric vehicles and is known for its spacious interior and advanced safety features.
lease
"Obviously, on a lease, that's a couple of hundred dollars a month."
A lease is like renting a car for a few years. You pay a monthly fee to use it, but you don't own it. After the lease ends, you can give the car back or buy it.
Leasing a vehicle is a financing option where you pay to use a car for a set period, typically 2-3 years, without owning it. At the end of the lease, you return the car or have the option to buy it.
EV
"Well, you could get a prologue EV and a used car on top of it, basically. Yes, for the seven grand or whatever is in there."
An EV, or electric vehicle, is a car that runs on electricity instead of gasoline. This means it doesn't produce exhaust fumes and can be cheaper to operate.
EV stands for electric vehicle, which is a type of vehicle that is powered entirely or partially by electricity instead of traditional gasoline or diesel fuel. EVs are becoming increasingly popular due to their lower emissions and potential cost savings on fuel.
Volkswagen Id4
"The ID4 was also 15,000 up from about 11, a year earlier. Then you saw cars that didn't do very well."
The Volkswagen ID.4 is a fully electric SUV made by Volkswagen. It's designed to be eco-friendly and has a good amount of space for passengers and cargo.
The Volkswagen ID.4 is an all-electric SUV that is part of Volkswagen's ID family of electric vehicles. It offers a spacious interior, advanced technology, and a range suitable for daily driving.
Lyric
"The lyric was down. It was only down 6%, but it was down."
The Cadillac Lyric is a luxury electric SUV from Cadillac. It combines high-end features with electric power, making it a stylish and eco-friendly option.
The Cadillac Lyric is an all-electric luxury SUV that represents Cadillac's entry into the electric vehicle market. It features a modern design, advanced technology, and a focus on performance and comfort.
Tesla Model 3
"Every other car fell, even the Model 3. The Model 3 had a lot of incentives on it."
The Tesla Model 3 is a smaller electric car from Tesla that is popular for its good performance and lower price compared to other Tesla models. It has helped Tesla sell many cars.
The Tesla Model 3 is a compact electric sedan that is known for its performance, range, and affordability compared to other Tesla models. It has been a significant contributor to Tesla's sales and market presence.
margins
"You've seen their margins come way down as they put more money on the hood."
Margins are how much money a company makes after paying for what it costs to make a product. If margins go down, it means the company is making less money on each sale.
Margins in business refer to the difference between the cost of producing a product and its selling price. In the automotive industry, lower margins can indicate reduced profitability for manufacturers, often due to competitive pricing or increased incentives.
EV product plans
"Toyota, to me, was the only mainstream brand that seems to be not really making huge changes to its EV product plans."
EV product plans are the plans that car companies make for creating and selling electric cars in the future.
EV product plans refer to the strategies and timelines that automakers set for developing and releasing electric vehicles.
Toyota bZ4X
"...lic issues with their EV programs. Toyota has the BZ4X, which we've been seeing commercials for it. It's..."
The Toyota bZ4X is a new electric car that doesn't use gas, making it better for the environment. It's important because it's one of the first electric SUVs from Toyota, showing their effort to create more eco-friendly vehicles.
The Toyota bZ4X is an all-electric SUV that represents Toyota's entry into the growing electric vehicle market. It is significant as it showcases Toyota's commitment to sustainability and innovation in automotive technology, particularly in the realm of electric mobility.
hybrid
"...the reason Toyota's doing great is because Toyota's all in on hybrid. I mean, just the camera is only a hybrid."
A hybrid car uses both a gas engine and an electric motor. This helps it save fuel and produce fewer emissions than regular cars.
A hybrid vehicle combines a traditional internal combustion engine with an electric motor to improve fuel efficiency and reduce emissions. This technology allows for better performance and lower fuel consumption compared to conventional vehicles.
Toyota RAV4
"The RAV4 is only a hybrid. They have like lots and lots of hybrids."
The Toyota RAV4 is a small SUV that is known for being reliable and practical. The hybrid version uses both gas and electric power to save on fuel.
The Toyota RAV4 is a compact SUV that has been popular for its reliability and versatility. The hybrid version offers improved fuel efficiency and lower emissions compared to traditional gasoline models.
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