+++ ASTON MARTIN says it may be forced to halt production if the UK cannot secure a Brexit deal with the EU. Speaking at the Business Select Committee over the issue, the British automaker’s chief financial officer, Mark Wilson, claimed the results could be “semi-catastrophic” if a deal isn’t secured. “We’re a British company. We produce our cars exclusively in Britain and will continue to do so. Recertifying to a new type of approval, be that federal US, Chinese or even retrospectively applying to use the EU approval, would mean us stopping our production”, he said. Currently, all new vehicles in the UK are required to have Vehicle Certification Agency (VCA) approval, also valid in the EU. However, if a deal between the UK and EU cannot be reached, the validity of these cars will cease from March 2019, BBC reports. “Recertifying to a new type of approval, be that federal US, Chinese or even retrospectively applying to use the EU approval, would mean us stopping our production”, Wilson added. Uncertainty about the financial longevity of the UK after Brexit comes during an important time at Aston Martin. The car manufacturer took control of a former military base earlier this year and will convert it into a production facility to build the upcoming DBX cross-over. +++
+++ It was in February 2016 when we first saw the actual BMW 740e, and rumours quickly spread that it will have a short life cycle. But sources now say that the plug-in hybrid fullsize sedan will retire next year to give way to a new 745e. In fact, this model was just at the 2017 SEMA Show to display a wide range of M Performance parts. Hopefully, there will be a more powerful model and there will be an electric car with more range. However, so far there has been no confirmation. Currently, the outgoing 740e comes with a turbocharged 2.0 liter four cylinder engine that produces 252 horsepower. It is then paired with an electric motor with another 115 horsepower. Overall, the electrified 7 Series can carry out a total of 326 horsepower and 500 Newton metres of torque. When combined with the engine, the 740e develops a peak torque at 1,250 rpm. In only 5.4 seconds, the 740e can accelerate to 100 kilometers per hour) before hitting its maximum speed of 210 kilometers per hour. While I don’t expect dramatic changes, I’m excited to see what the new 745e has to offer. But what I would really like to improve is the current electric range of just 22 kilometers provided by the 9.2 kilowatt hour lithium ion battery pack that is recharged via a standard J1772 3.7 kW plug. I anticipate that extending the range will really drum up sales for the series. For comparison’s sake, BMW’s new plug-in hybrid, the X5 xDrive40e that we first saw in March 2015 had 313 horsepower from the same 2.0 liter four cylinder engine. Notably, this model takes a little longer when it comes to do the sprint, hitting 100 kilometers per hour is 6.8 seconds, before maxing out at 210 kilometers per hour. Just like the 745e, this plug-in hybrid SUV also makes use of a 9.2 kilowatt hour battery with the same range of 22 kilometers. Having said all that, we are not likely to witness a huge jump in performance from the X5 xDrive45e, based on the current version’s specifications. In addition, the report does not also say whether the upgrades will mean an increase in price for the 2 plug-in hybrids. +++
+++ Electric vehicle manufacturer FISKER has patented potentially industry-changing solid-state battery technology. The American manufacturer claims the technology has the ability to power a car for over 500 miles on a single charge and aims to introduce it to its model line up in 2023. The Californian marque has been developing a new and unconventional battery system for use in its future EVs. The technology involves the construction of bulk three-dimensional solid-state electrodes with 25 times more surface area than traditional thin solid-state electrodes. This enables faster charging and better performance in cold temperatures. Energy density from solid-state batteries is said to be 2.5 times greater than traditional lithium-ion batteries and is projected to cost one third of the price. Development of solid-state batteries for vehicle use has been slow, due to the lack of supply chains for the specific raw materials needed to assemble the battery pack. The quality of the materials and the finished solid-state battery itself is currently a long way off mass production standards before Fisker decides to implement the technology. Should the solid-state breakthrough occur, Fisker claims that solid-state-powered EV’s could have a range of over 500 miles on a single charge. It also claims charging times could be as low as one minute, but does not specify whether the battery can be fully or partly charged in the space of 60 seconds. While solid-state batteries remain a few years away from being implemented in new cars, Fisker will showcase the solid-state battery tech at the upcoming Consumer Electronics Show in Las Vegas on 9-12 January 2018. It will be displayed alongside Fisker’s new EMotion, a 161mph four-door electric saloon with a range of 400 miles, which will rival the market-leading Tesla Model S. +++
+++ INFINITI has largely abandoned flagships sedan since the Q45 was phased out in 2006. The company still offers the Q70L but that’s more of a competitor to the Cadillac CT6 than proper flagships from Audi, BMW, and Mercedes. The company has flirted with the idea of a new flagship in the past and the automaker introduced the stylish Q80 Inspiration concept at the Paris Motor Show in 2014. While 3 years have passed since that concept was unveiled, Infiniti’s head of design, Alfonso Albaisa, suggested the company could have a surprise for 2018 North American International Auto Show. Albaisa said: “In Detroit, we will show something about that subject flagship sedans which is super nice”. The designer went on to suggest the car will be a “sexy” sedan that has a “new proportion because of new technologies”. That’s not much to go on but it sure sounds like Infiniti is preparing to introduce a new concept that could preview a flagship sedan. Albaisa’s mention of technology is also interesting as it could be a subtle hint that the vehicle might adopt an alternative powertrain such as electricity. This matches up with previous rumors which suggested Infiniti would introduce an electric concept in Detroit with plans for a production model in 2019. +++
+++ PORSCHE ’s chief financial officer, Lutz Meschke, says the manufacturer may need to accept a “temporary drop in profitability” as it transitions to focus on electric and plug-in hybrid vehicles. Meschke described the costs of developing electric technology as an “enormous burden”. “Today Porsche packs 8,000 to 10,000 euros in added content into an electrified vehicle, but those costs cannot be passed on via the price. The customer won’t accept it, just the opposite, in some parts of the world there’s a certain hesitation to acceptance”, he said. “But new technologies like this are an investment in the future. Our 5-year investment plan foresees investments of more than 3 billion euros alone for EVs and plug-ins. That’s an enormous burden for a company of our size”. Along with its current range of plug-in hybrids, Porsche is preparing the Mission E for a 2019 or 2020 debut. Based on the Mission E concept from Frankfurt 2015, the car is expected to offer more than 500 km of range on a full charge, and will be capable of ultra-fast charging using the Porsche Turbo Charging system debuted at the Electric Vehicle Symposium in Stuttgart. Although production performance figures haven’t been announced, the concept was fitted with a 600 hp four-wheel drive powertrain. The company is hoping to shift more than 20,000 examples every year, while the car’s platform could spawn a range of Mission E vehicles below it, including an SUV. “The conceptual design of the Mission E once again gives us technically the potential to do more with this platform, and also we think about if the battery electric business will be fast growing and we think that the whole business will change, most probably pretty fast at some trigger point”, Porsche member of the executive board for research and development, Michael Steiner, told at the Paris Motor Show last year. “In general we think what could be a second or third step, and also in terms of the platform of Mission E there is no reason why this has to be only a one body-style platform”, Steiner said. “But if you look back, when we have done a new segment, we always have started with one variant and then it depends a little bit how this develops, how the sales are moving on, and how the segment is developing as a whole; whether we add variants or not”. Don’t expect to see electric power pushing internal combustion to the fringe any time soon, though. Meschke told Automotive News Europe that diesel will be sticking around for a while yet, while PHEV, EV and internal-combustion cars will be sold side-by-side for the next decade. “Half of the four-door models we sell in Europe run on diesel, and our new-generation Cayenne is engineered for diesel”, he said. “We do not intend to make any rash decisions. Porsche is carefully considering the varying levels of demand in individual markets. For this reason, we do not envisage immediately stopping production of diesel vehicles. We are keeping all our options open and will tackle specific product decisions as late as possible,” he added. “Much depends on the extent to which electro-mobility gains momentum and under what circumstances. Over the course of the next 10 years, we plan to offer optimised combustion engines, plug-in hybrids and full-electric sports cars in parallel”. +++
+++ The PSA Group, which comprises the Peugeot, Citroën and DS brands, has revealed plans for an improved and expanded online car-buying system as part of a move towards digitisation and away from traditional car dealerships. Announcing a new, highly digitised global offer under its Push to Pass mid-term business plan, PSA Group chairman Carlos Tavares said the system would allow buyers to choose and purchase cars online, enable them to sell used cars “with confidence”, easily choose car parts or repairers and reserve a car, scooter or van as a hire vehicle when required. The plan includes a scheme to provide for the aftermarket needs of any car on the road, and PSA estimates the world fleet currently runs to 800 million cars. Talking online purchase, PSA chief of e-sales Morgan Lecoupeur said that across Europe, visits to dealerships had recently declined by 40 percent and that 1 in 3 buyers was now happy to complete a car deal online. Digital sales, on the other hand, have increased 40 percent, Lecoupeur said. PSA’s pricing expert, Marc Lechantre, established the goal of the new digital strategy: “Our idea is for the customer to buy or sell a car with complete security and confidence”. The PSA Group, which also owns Opel and Vauxhall, predicts that car sharing is set to increase 4.5-fold, from 8 to 36 million users, over 10 years from 2015 to 2020. PSA’s Free2Move car-sharing scheme already has 400,000 cars on the road in 6 countries, and is planned to have complete Europe-wide coverage by the end of next year. The group has also launched retail spaces with digital showrooms as part of its digitisation plans. Named Experience Stores, the sites will offer potential customers a taste of the brands before giving them the opportunity to make a purchase online in the store, or at home. These, like similar efforts from the likes of Hyundai and Jaguar Land Rover, will be staffed by ‘brand ambassadors’ (product experts, in other words) instead of salespeople. In a speech given to conclude the event, PSA boss Carlos Tavares criticised factions working to threaten freedom of mobility: “I am very concerned as a European citizen that on an individual basis, freedom of mobility may be under attack. I would like our company to be the company to offer solutions. Constraints on mobility are increasing day by day. We believe that freedom of mobility is a fundamental right of humanity; I believe that FOM is a fundamental right of democracy. Any Government that in one point in time would attack freedom of mobility, will at one point in time face serious problems, and this is something that we could foresee. We don’t think any more about cars. We think about mobility. We recognise that the needs of our customers are evolving. PSA needs two legs – to be a cutting edge car maker on one side and mobility provider on the other”. Tavares also targeted the risk of rising car prices through increased technology density per car as a risk to mobility: “Imagine someone tells you you need an autonomous car, to be safe. Maybe you won’t be able to afford it. I’m from a generation that democratised mobility for 30 years. ABS, for example, started at the high end and trickled down. I would like to avoid a situation where we go backwards. I want to avoid a situation when only the richest people can afford individual mobility”. +++
+++ High-profile short-seller Jim Chanos of Kynikos Associates has stepped up his bets against electric car maker TESLA throughout the year even as the company’s shares rallied. Chanos, who first said he was betting against Tesla shares in May last year, said that he expected its chief executive Elon Musk to step down from his position by 2020 to focus on his private rocketship company SpaceX as competitors such as BMW and Porsche expand their lines of luxury electric vehicles. “Obviously this is not being valued as a car company, it’s being valued on Musk; he’s the reason people own the stock”, Chanos said. Chanos is famous for having correctly bet against Enron Corp long before the US energy giant’s 2001 bankruptcy. Shares of Tesla are up 44 percent for the year to date, at one point pushing its market value higher than competitor General Motors despite Musk’s company not turning a profit. On November 1, Tesla reported its largest-ever quarterly loss and pushed back its production target of its new Model 3 sedan by 3 months. The company said it now expects to build 5,000 Model 3s per week by late in the first quarter of 2018, having orginally planned to get there in December. Despite the production delays, the company has been among the most painful for short-sellers this year, with losses among funds that bet on its decline totaling more than 4 billion dollar this year, according to S3 Partners, a financial analytics firm. Short sellers borrow stocks that they expect to decline, aiming to return them later at a lower cost to pocket the difference. “Put it this way”, Chanos said. “If you wouldn’t be short a multi-billion-dollar loss-making enterprise in a cyclical business, with a leveraged balance sheet, questionable accounting, every executive leaving, run by a CEO with a questionable relationship with the truth, what would you be short? It sort of ticks all the boxes”. He said the company is burning more than 1 billion dollar in cash each quarter and will have a harder time tapping the capital markets if and when Musk leaves. Tesla will go bankrupt, he said, without giving a timeframe. Tesla didn’t respond to a request for comment. +++
+++ Three-and-a-half months after TOYOTA and Mazda announced a $1.6 billion joint car factory in the U.S., Bloomberg reports that the plant will be located in either Alabama or North Carolina. Spokesmen at the 2 carmakers have refused to comment on the reports but Bloomberg says Alabama and North Carolina have beat out the likes of Tennessee, Texas, and South Carolina for the factory. When the facility is completed and production commences in 2021, it will build 300,000 cars annually and create roughly 4,000 new jobs. Toyota has confirmed that it will build the Corolla at the facility while Mazda says it will build SUVs at the site. The Japanese firm has yet to specify which models these will be. Speaking about the plant at an announcement in early August, Mazda president and chief executive Masamichi Kogai said the alliance could energize the industry. “Nothing would please me more than if, through this alliance, we can help to energize the auto industry and create more car fans by bringing together 2 competitive spirits to spur each other on, leading to innovations and fostering talent and leaders”. +++