+++ BATTERY SWAPS can help boost electric vehicle penetration in China, especially in the vehicle fleets used in public transportation, said an analyst. Inadequate charging infrastructure has hindered mass adoption of electric vehicles in China so far. “China aims to have 80 % of new vehicles sold in regions with heavy air pollution to be electric from this year and battery swapping provides an approach to decarbonize heavy transport with quick refueling times in addition to facilitating China’s transition to green cars by 2035”, said Mi Siyi, an analyst. “While home and workplace chargers will be most favored by private EV owners, battery swapping, together with fast-charging stations, can gain more popularity among fleet operators, particularly taxis, ride-hailing vehicles and light commercial vehicles”, she said. Without getting off their cars, passengers can swap a battery merely by pushing a button. China saw 613 battery-swapping stations by the end of March, according to the China Electric Vehicle Charging Infrastructure Promotion Alliance, which has effectively improved users’ swapping experience. The Government Work Report this year stressed that efforts should be made to build more charging pillars and battery swap stations this year. Many institutions believe the time for battery swapping has come. Mi said she was optimistic about the prospects of China’s battery swapping sector in the 14th 5-Year Plan period (2021-25). “The momentum in EV battery swapping is rising, as there are more large EV fleets on the road, particularly taxis and light commercial vehicles, compared to the 13th 5-Year Plan period (2016-20). Local government incentives will also further support its growth”, she said. “However, challenges remain when it comes to standardized battery design, high capital cost and low utilization rates. This will likely limit the application of battery swapping”. While automakers in China have different battery technologies and standards that are not unified at present, Mi said she believes China’s forthcoming new safety standards for battery swapping can help bring more consistency to the industry. Last August, China approved its first national battery-swapping safety standard for electric vehicles. It said more research needs to be done on battery-swapping, swappable battery packs and battery-swapping interface, as well as any potential failure points. “With the lack of standardized battery design and unclear ownership and responsibilities among operators, consumers and manufacturers, it will be challenging to spread out shared battery swapping stations”, Mi said. Different battery chemistries and pack designs are favored by automakers depending on the vehicle’s specifications and targeted segments, she said. Battery-swapping stations are also relatively small in amount compared with the traditional charging stations. The more than 600 swapping stations are overshadowed by the 63.600 charging stations across China at the end of last year, according to the China Electric Vehicle Charging Infrastructure Promotion Alliance. According to Zhang Qinggang, vice-president of the Shenzhen Institutes of Advanced Technology, while the capital expenditure of a battery swapping station is significantly higher due to the costly battery packs, it is highly likely the price will fall as battery price drops. He estimated that the cost of battery swapping is about 0.35 yuan ($0.05) per kilometer, compared with the average cost of less than 0.2 yuan per kilometer with a charging pole so far. Many carmakers in China, including Nio, BAIC, Changan, Xpeng and Li Auto, are all doing their part, believing the trend of battery swapping is on the way. Chinese electric car startup Nio, for example, has been pioneering battery swap technology since late 2015. A total of 197 Nio battery swapping stations have been built across China by the end of March this year in around 80 cities, which allows a car to replace a fully charged battery in less than 3 minutes and the number is expected to jump to 500 by the end of this year, it said. It has also recently signed an agreement with China’s oil giant China Petrochemical, better known as Sinopec, for strategic cooperation on battery swapping stations. Nio’s first Power Swap Station 2.0 was officially launched at a Sinopec service station in Beijing in April, a move that will tap the potential of both sides and be a milestone for the country’s electric vehicle development, said Nio. Both sides will come up with various measures in the fields of the battery swapping station layout, new materials as well as intelligent vehicles, to jointly push forward the country’s new energy vehicle development, said the State-owned oil behemoth. China saw its EV infrastructure developing rapidly in recent years. It installed 284.000 public EV charging outlets in 2020, including 112.000 in December alone, more than the entire US public charging network. China’s increasing availability of publicly available EV charging outlets is also driven by the country’s efforts to create the infrastructure ahead of demand and higher levels of EV adoption. The ratio between the number of public charging points and the size of China’s EV fleet is already much lower than that in other countries, it said. China’s EV owners are mostly high-rise dwellers in cities that also have stringent policies and incentives aimed at limiting sales of new internal combustion engines so as to reduce pollution levels, according to Colin McKerracher, BNEF’s head of advanced transport. In 2020, almost 1.37 million new energy vehicles were sold, and the figure is expected to hit 1.8 million this year. +++
+++ GENERAL MOTORS ‘ first-quarter net income surged to $2.98 billion as strong US consumer demand and higher prices offset production cuts brought on by a global shortage of computer chips. Despite the shortage, GM stuck with full-year pretax earnings guidance of $10 billion to $11 billion issued earlier in the year and said earnings would be at the high end of the range. Full-year net income is expected to be between $6.8 billion and $7.6 billion. The company predicts a strong first half with a pretax profit of around $5.5 billion. GM executives would not give specifics on how much production they expect to lose to the chip shortage. But CEO Mary Barra said purchasing, manufacturing, engineering and sales teams are working to divert the chips from cars and smaller SUVs to full-size pickups, big SUVs and new electric vehicles. “A lot of really good work is being done across our company to source semiconductors, allocate them across our most in-demand and (factory) capacity-constrained products”, she said. The company reiterated that the shortage would cost it $1.5 billion to $2 billion in earnings before taxes this year due to lost production. GM has been forced to cut production of some smaller vehicles with lower profit margins, such as the Chevrolet Equinox SUV. “Is there an impact this year? Absolutely”, Barra said on a conference call with reporters. “But the team keeps working to minimize it”. Jeff Windau, senior equity analyst of Edward Jones, said GM appears to be managing the chip shortage well, but he would like to see more specifics on how many vehicles it won’t be able to produce. He said the company may have been trying to keep the focus off the shortage. “Some of the other peers have come out and expressed significant production cuts in the second quarter, and obviously the stock prices have been punished for that”, Windau said. Barra said the worst impact of the shortage will take place in the current quarter, improving in the second half of the year. GM’s first-quarter profit increase was 12 times larger than the same period last year, when the start of the novel coronavirus pandemic forced automakers to shutter factories, limiting GM’s net income to $247 million. Excluding nonrecurring items, GM made $2.25 per share from January through March, doubling Wall Street estimates of $1.05. Revenue of $32.47 billion was below estimates of $33 billion according to FactSet. The Detroit automaker reported pretax income for the first quarter at $4.4 billion. During the quarter, the company said it was able to divert precious computer chips to higher-profit models such as full-size pickups and SUVs, and those that brought higher income. In the US, GM’s most profitable market, sales rose 4 percent from January through March compared with a year ago. However, the first-quarter sales of 639.406 vehicles was the second-lowest level in the first quarter since 2015, and the figures were 4 % below the same period in 2019, according to Cox automotive. Still, demand was strong and inventories were low, allowing GM to reduce discounts and raise prices. GM’s average sales price hit a record of $44.685; up 9 % from a year ago, according to Cox figures. Crosstown rival Ford said last week the worsening chip shortage would cut its production in half during the current quarter. The situation will improve in the second half, but Ford still will see production fall 10 % over original plans. That means Ford won’t be able to make up for any lost production this year. The company expects to lose factory output of 1.1 million vehicles for the year, up from an earlier estimate of 200.000 to 400.000. Nearly all automakers are struggling with the chip shortage, caused by semiconductor makers switching their factories to more profitable consumer-electronics processors when auto plants closed due to the novel coronavirus last year. The auto factories came back faster than expected, but the chip makers didn’t quickly switch their factories back to automotive-grade chips. Then a March fire wiped out much of the chip production at a factory in Japan that makes chips for vehicles. Barra said that after the chip shortage ends, GM will not return to a business model with huge dealer inventories. Rather it will go to more of an order and fast-delivery model, which would save on costs and keep the company from being caught with too many vehicles in a downturn. “We won’t over-build inventory”, she said. Some dealers, she said, have sent her pictures of empty lots, so the inventory has to grow a little higher than it is today. Barra also said she expects there will be personal ownership of autonomous vehicles and that GM’s Cruise autonomous vehicle subsidiary is making progress toward starting a driverless ridehailing service in San Francisco. “It’s not years out”, she said. Cruise also expects to have up to 4.000 self-driving vehicles operating in Dubai by 2030, she said. +++
+++ Chinese tech giant HUAWEI released an announcement, reiterating that the company is not making cars and will not make cars in the future. We have clarified this long-term strategy since 2018, and not changed it since then, Huawei said. In its latest statement, Huawei said the industry does not need Huawei-branded cars, but rather its ICT (Information and Communication Technology) technical capacity. Huawei aims to enable car OEMs to build better vehicles based on ICT, which means the company aims to be a provider of digital car-oriented components. Huawei has not invested in any carmakers, nor will it invest in any in the future. Huawei will not become a controlling shareholder or a shareholder of any car enterprises, the company said, adding that any suggestions of Huawei making cars or having a share in carmakers are rumors. Huawei noted that it is respectively supporting 3 of its strategic partners (BAIC, Chang’an Auto and GAC Motors) to build their sub-brands. Cars adopting Huawei autonomous driving solutions can only use the HI logo, which means Huawei Inside, after they are authorized by Huawei. According to Huawei, it is the electric drive and HiCar components provider of Seres SF5 models. Huawei is selling these car models in its flagship stores across China, providing certain benefits to support operations for these stores, the statement said. +++
+++ HYUNDAI has confirmed that it will launch a “3-row, mid-size” pure-electric SUV in 2024, called the Ioniq 7. It’ll sit above the recently launched Ioniq 5, providing fresh competition for the likes of the Tesla Model X. Hyundai hasn’t released much information about the Ioniq 7. The only vague image we have to go off is a depiction from the cover of the company’s 2021 investor presentation, which shows an imposing SUV silhouette in the background. Like all of the Hyundai Group’s next-generation electric vehicles, the Ioniq 7 will be based on the scaleable E-GMP underpinnings. That means it should share its electric powertrains with the Ioniq 5, the most powerful of which features an electric motor on each axle for a combined output of 306 hp and 605 Nm of torque. The Ioniq 7 will also feature Hyundai’s 800 volt charging architecture. If it’s available with the same 58 kWh and 73 kWh battery packs, a 10-80 % recharge from a 350 kW DC rapid charger should take just 17 minutes. When connected to a more accessible 50 kW feed, both batteries can be fully recharged in less than an hour. The extra seating row will provide enough space inside for seven passengers, with the E-GMP platform allowing Hyundai to maximise space inside, so the 7 could be more spacious than rival internal combustion engined or hybrid rivals. The rest of the Ioniq 7’s interior will likely be carried over from the Ioniq 5, sharing a similar climate control panel and the same 12.3-inch digital instrument cluster and infotainment system. The seats could also use the same eco-friendly polyester resin upholstery Before we see the Ioniq 7, Hyundai will launch a new electric saloon called the Ioniq 6, which will use the Prophecy concept as a starting point. It’s due to arrive next year as a rival for the BMW i4 and sources close to Hyundai say the production model will be “very similar” to the concept. +++
+++ The HYUNDAI MOTOR GROUP will slash the number of combustion engine models in its lineup to free up resources to invest in electric vehicles, 2 people close to the automaker told. The move will result in a 50 % reduction in models powered by fossil fuels, one of the people said, adding the strategy was approved by top management in March. “It is an important business move, which first and foremost allows the release of R&D resources to focus on the rest: electric motors, batteries, fuel cells”, the person said, without giving a timeframe for the plan. While Hyundai did not specifically address a query on its plans for combustion-engine models, it said that it was accelerating adoption of eco-friendly vehicles such as hydrogen fuel cell vehicles and battery EVs. The automaker added that it aims to gradually expand battery EV offerings in key markets such as the U.S., Europe and China with a goal for full electrification by 2040. The Hyundai Motor Group, which includes Hyundai, Kia and Genesis, aims to sell about 1 million EVs per year by 2025 to achieve a 10 percent share of the global EV market. Facing tightening CO2 emissions targets in Europe and China, all major automakers are accelerating their shift to EVs. The huge cost of developing electric motors and increasing the driving range of car batteries has already led some to say their days of investing in conventional engines are over. “Hyundai has stopped developing new powertrains for internal combustion engine cars”, one of the people said. The PSA Group said in November, shortly before merging with Fiat Chrysler Automobiles to form Stellantis, that it was no longer investing in combustion engines. Daimler has recently revamped its combustion engines and executives say the new generation will see it through the electrification process. Some automakers have already announced plans to go fully electric, with Sweden’s Volvo, which is owned by China’s Geely, saying it would do that by 2030. Ford says its lineup in Europe will be full electric by the same date. For Hyundai, which together with Kia is 1 of the world’s top-10 auto groups, the move is particularly important because it has one of the broadest ranges of engine and transmission technologies in the industry. The group will finalize its strategy to switch to full-electric models within the next 6 months, one source said. In April, Hyundai said it would cut the number of its gasoline models in China to 14 from 21 by 2025, while launching new electric models every year starting in 2022. In February, the group said it was no longer in talks with Apple to develop an autonomous vehicle. Sources familiar with the matter said the idea of the group becoming a contract manufacturer for Apple encountered strong internal opposition. +++
+++ JAGUAR LAND ROVER reported a bountiful fiscal year ending on March 31, fueled by the British premium carmaker’s steady growth in China. Its global retail sales totaled 439.588 vehicles last year. Of them, deliveries in China totaled 111.206 vehicles; up 23.4 % year-on-year. In the 4th quarter, the carmaker retail sales hit 123.483 vehicles; up 12.4 % year-on-year. This was supported by a strong recovery in China, where sales soared 127 % year-on-year. In the fiscal year, Jaguar Land Rover’s pre-tax profit before exceptional charges hit £662 million for the full year and EBIT margin improved to 2.6 %; up 2.5 points year-on-year, achieving positive free cash flow of £185 million. It reported strong liquidity of £6.7 billion by the end of the year, with £4.8 billion of cash and £1.9 billion undrawn credit facility. Pan Qing, president and CEO of Jaguar Land Rover China said: “The past fiscal year has been a very challenging one. However, with the shared efforts of our retail partners, we have fought adversity to achieve great results in the post-pandemic era. Our rapid recovery and significant progress in China has not only greatly contributed to our global sales performance, but also proved that China has been playing a key role in bringing the ‘Reimagine’ strategy to life and achieving its ambitious goals”. Jaguar Land Rover unveiled the global strategy in February this year. According to it, Jaguar will become a pure electric car brand by 2025. Land Rover will launch 6 pure electric models in 5 years, with the first one to roll out in 2024. Around 60 % of Land Rover vehicles sold will feature zero-emission powertrains by 2030. Jaguar Land Rover CEO Thierry Bollore said: “Despite the pandemic, this year has also seen significant positive change culminating in February with the launch of our Reimagine strategy focused on reimagining our iconic British brands for a future of modern luxury by design. Jaguar Land Rover is well placed to emerge from the pandemic as a stronger and more resilient company that is able to navigate and capitalize on the opportunities ahead”. +++
+++ KIA will run a pilot “pick up and charge” program for the convenience of electric vehicle users, officials said. “We have come up with an on-demand pick up and charge system in order to reduce any inconvenience that all-electric vehicle drivers may face in everyday life”. To go with the service, which will be available 24 hours a day in most parts of the country, the company has also launched eON, an exclusive mobile application. Users may designate the date, time and location of the pickup, as well as the drop-off point, at least 3 hours prior to the desired pickup time. Once the application is registered and confirmed, an employee will pick up the car, drive it to a nearby charging station and return it to the designated spot. Customers can monitor the real-time location of the car, the progress of charging and the contact information of the Kia employee. The eON app is to be available for Android users during the pilot service period and will expanded to iOS users after the official launch of the service. “During this pilot period, we shall analyze customer demands and collect operational data, so that we may improve the service quality and move on to official launch within the year”, officials said. Also, after the official launch, car owners can hand over the car using the digital key function, without having to be present. Marking the launch of the program, Kia will hold a customer event and offer coupons for free service to 750 people who download the eON app and register for the service, on a first-come, first-served basis. +++
+++ Around 90 institutional investors based outside Japan have filed a suit seeking damages from NISSAN , saying they suffered huge losses as former boss Carlos Ghosn’s financial misconduct cases dented share prices, according to sources close to the matter. The plaintiffs, which include institutional investors from countries such as Britain, Germany and the United States, are demanding in the lawsuit that the Japanese automaker pay a total of around ¥34.4 billion ($315 million) in compensation for their financial losses, the sources said. According to the complaint, the investors who have traded Nissan stocks through financial institutions since June 2011 argue that Nissan stock prices plunged after the company’s then chairman Ghosn and Greg Kelly, a former Nissan executive, were arrested by Japanese prosecutors in November 2018 for underreporting Ghosn’s remuneration by billions of yen in financial reports over multiple years. The investors maintain that Nissan could easily have forecast a drop in stock prices due to damaged trust in the company’s accounting and corporate governance if the incident was reported by news media. Nissan, which was also indicted in connection with financial misconduct by Ghosn, declined to comment on the trial. Ghosn jumped bail and fled Japan for Lebanon while awaiting trial in 2019. He spent his childhood in Lebanon, which does not have an extradition treaty with Japan. Ghosn has said he is innocent of the charges and that his arrest was the result of a coup staged by Nissan executives. He also said that he fled Japan to escape a “rigged” justice system. Kelly is currently on trial in Japan on suspicion of helping underreport Ghosn’s remuneration. He has pleaded not guilty to the charges. +++
+++ Chinese new energy vehicle producers are making a foray into NORWAY , one of the most NEV-obsessed countries worldwide, as a first approach to Europe. BYD announced it will deliver 1.500 Tang SUVs in Norway by the end of this year, just as the company celebrated the production of its millionth NEV. A batch of 100 electric SUVs will be shipped to Norway at the end of May. Earlier this month, Chinese electric car startup Nio announced it plans to begin deliveries to Norway in September. This would make it the company’s first entry into a market outside of China. Nio plans to first launch its ES8 (a SUV) in Norway this year, followed by its ET7 sedan in 2022. The company said that it will establish a “fully fledged ecosystem” in Norway, going beyond vehicles and servicing to include a lifestyle brand and community app. The group will also invest in charging infrastructure, with plans for four battery swapping stations in Norway connecting five major cities by the end of 2022. It comes after competitor, Xpeng Motors, delivered 209 units of the electric Xpeng G3 ( a SUV) to the country. They left in a ship from Guangzhou, in South China’s Guangdong province, bound for Norway in February. It was the company’s second shipment to the Nordic country, after the first 100 cars arrived in December. WM Motors and SAIC have also exported products to Norway before. Nio founder and CEO William Li said: “Norway is the most EV-friendly country. Meanwhile, its culture of loving nature and innovation resonates with Nio’s vision in many ways”. Li said that the decision to have Norway as its first overseas destination is backed by long-term thinking. The company plans to enter more countries in Europe in the future. Chinese carmakers are using Norway as the launchpad to expand overseas markets thanks to its mature supporting conditions and policy dividends, an industry expert said. According to the Norwegian Road Federation, nearly 77.000 electric vehicles were sold in Norway last year, accounting for more than 54 % of overall new car sales. Norway is the first country in the world where EV sales accounted for over half of all new vehicle sales. In March, the new car sales proportion of NEVs rose to 84.9 %. The industry expert, who is based in Norway, forecast that these vehicles will account for 65 % of car sales for the whole of this year. Further growth is also backed by a government climate plan that aims to cut greenhouse gas emissions by 50 % by the end of the decade, based on 1990 levels. The glacier-rich nation, part of which lies in the fast-warming Arctic Circle, also plans to make sure all new passenger cars and light-goods vehicles sold by 2025 are zero emissions. Electric vehicles benefit from preferential tax treatment in Norway, including an exemption from an €8.500 euro registration fee that applies to fossil-fuel-powered cars. Also, Norway has mature charging facilities with 450.000 charging piles registered by the end of 2020. It means that for every 10.000 Norwegians there are 35 charging piles. The expert added that with the products of Chinese NEV companies entering a mature period, exporting is undoubtedly an important step to realize large-scale development worldwide. But strict European regulation and competition from carmakers there, such as Volkswagen, Daimler, Renault and others, will bring challenges, he said. +++
+++ RENAULT has registered four trademarks for its recently established Mobilize brand, which provide hints at what the company’s planned range of urban electric vehicles will be called. Renault’s trademarks were for the Mobilize Duo, Bento, Limo and Hippo nameplates. I expect the first will become the production version of the EZ-1 prototype. The concept is a 2.3-metre long, 2-seat electric vehicle with a 1+1 seating arrangement, which makes it a spiritual successor to the Twizy and a fresh competitor for the Citroën Ami in one fell swoop. The prototype also has a glass canopy, like the Ami. It was specifically designed for shared use, with drivers being billed according to the number of miles they cover or the amount of time spent behind the wheel. Every Mobilize Duo should also feature keyless access, with drivers accessing the car via a smartphone app. The Mobilize Duo badge has also been registered. Renault says that the eventual production model will be made according to “circular economy principles”, meaning it’ll be made from 50 % recycled materials. At the end of the car’s lifespan, Renault also claims that 95 % of the car will be recyclable. Technical specifications for the EZ-1 concept (or the Duo production model) are yet to be confirmed, although Renault has said that the EV will make use of a battery-swap system rather than relying on charging infrastructure. Renault has also confirmed that its Mobilize sub-brand will launch three more models, built on a modular, fully electric vehicle platform. Alongside the Duo, there’ll be a last-mile delivery vehicle, a ride-hailing service and a second, slightly larger car-sharing vehicle. I expect the courier van will be called Bento (after the Japanese lunch box), while the ride-hailing service should be called Limo, for obvious reasons. That just leaves the Hippo, which could become the brand’s second car-sharing vehicle. Mobilize will soon expand into a urban-focussed mobility provider, centred around the key pillars of car-sharing, pay-as-you-go driving and sustainable motoring. The brand’s success will hinge on the uptake of these 4 new models, which Renault expects will generate around 50 % of its revenues by 2030. Mobilize will be responsible for developing new charging technology and services for the entire Renault group, too. Currently, the firm is developing a charging pass for Renault customers, allowing them to easily locate a charging point and pay using a single Europe-wide accepted method. Following in Tesla’s footsteps, Mobilize will also expand into the energy storage industry, using recycled batteries from Renault electric vehicles. +++
+++ RENAULT SAMSUNG ’s compact SUV XM3 will go on sale across Europe in July under the name of Arkana after its initial release in 4 European countries has been well received. The car first went on sale only in France, Germany, Italy and Spain in March and drew a positive response from media and consumers alike, raising hopes that it can turn the carmaker’s fortunes around. French car magazine Auto Moto named it the best SUV of 2021. The company’s target of 7.250 cars in initial sales has already been met, and the figure is expected to reach 8.000 by the end of this month. The compact SUV market in Europe totals 3.5 million cars per year, which accounts for 30 % of the entire automobile market. Capturing just 2 % of the market would mean sales of 70.000 XM3s. Renault Samsung hopes the XM3 will make up for its lost orders for the Nissan Qashqau. The carmaker manufactured some 100.000 to 120.000 units of this crossover at its plant in Korea before being forced to stop production last year due to dwindling demand. “Our conservative goal is to export 40.000 to 50.000 XM3s annually, but with a positive reception, we believe we can do better than that”, said a staffer at Renault Samsung. +++
+++ TESLA has said it will store data its vehicles generate in China locally and offer its vehicle owners access to query information, as vehicles from the United States carmaker and other smart car companies are fueling privacy concerns. In a Sina Weibo statement, Tesla said it has established a data center in China, with more to be built in the future, for local data storage, promising that all data of its vehicles sold on the Chinese mainland will be kept in the country. It did not provide a schedule when the center will be put into use but said it will notify the public when it is ready for use. Tesla’s move is the latest by a smart vehicle maker in response to growing concerns that the vehicles’ cameras and other sensors, which are designed to facilitate use, may prove to be privacy intrusion tools as well. The public debate over the issue became more intense in April when a Tesla Model 3 owner protested at the Shanghai auto show about an alleged brake failure that resulted in a car crash. In the same month, Tesla made public the vehicle’s data within 30 minutes of the car crash without the consent of the car owner, fueling further debate about safety and privacy. The dispute remains unresolved so far, as the data cannot be verified. Tesla is just one of a growing number of companies that are rolling out smart vehicles. Statistics from the Ministry of Information and Technology show 15 percent of passenger cars sold last year have Level 2 autonomous functions. That means over 3 million vehicles, from both Chinese and foreign carmakers, with cameras and radars hit the Chinese roads last year. Experts said the number of smart vehicles will grow even higher and faster, as the global auto industry is shifting toward electrification and digitalization. Features like wireless software updates, voice commands and facial recognition are now standard on most new vehicles. Earlier this month, the Cyberspace Administration of China began to solicit public opinion on a set of draft rules that require automobile-related business operators to obtain the permission of drivers before collecting car owners’ personal and driving data. The default option for the carmakers is not to store data that vehicles generate, and even if they are allowed to store it, the data must be deleted if customers request so. Chen Quanshi, a professor of automotive engineering at Tsinghua University in Beijing, said it is a correct move to regulate the smart vehicle segment. “Connectivity is making cars easier to use, but it poses risks as well. We should have introduced regulations earlier”, said Chen. In early May, autonomous driving startup Pony.ai founder James Peng said the data its robotaxi fleets collect in China will be stored in the country, and they will be desensitized to ensure privacy. Late last month, the National Information Security Standardization Technical Committee released a draft to seek public feedback, which would forbid companies from processing data from cars not related to vehicle management or driving safety. Also, data regarding locations, roads, buildings and other information collected from the environment outside the cars through sensors such as cameras and radar will not be allowed to leave the country, it said. Control of use, transmission and storage of data are a challenge for the industry and regulators worldwide. Nio’s founder and CEO William Li said its vehicles sold in Norway will have their data stored locally. The Chinese company announced in May the vehicles will be available in the European country later this year. +++
+++ The Sino-German joint venture FAW – VOLKSWAGEN will step up efforts to introduce new energy vehicles, as the auto industry is shifting towards green and sustainable development. Electric cars and plug-in hybrids are continuing their momentum. Last year, their sales in China went up 10.9 % year-on-year to 1.37 million units, and around 1.8 million are expected to be sold this year, according to the China Association of Automobile Manufacturers. “We will strive to make electrification and digitalization as our competence in the future”, said FAW-Volkswagen president Pan Zhanfu. The joint venture has started production of plug-in hybrids and electric cars, under both Audi and Volkswagen brands, and more models are to join soon. Pan made the remarks at the joint venture celebrated its 30th anniversary on Friday in Changchun, capital of Northeast China’s Jilin province. Established in 1991, FAW-Volkswagen has grown into one of the bestselling passenger vehicle manufacturers in China, with over 22 million vehicles delivered over the past 3 decades. Last year, it was the only carmaker that sold over 2 million vehicles in China. “In the context of energy saving and emission reduction, FAW-Volkswagen will further accelerate the production of new energy vehicles”, he said. The carmaker is cutting emissions of its production as well. Last year, its overall CO2 emissions were 36 % less compared with 2015. Production of the electric cars on the new MEB platform at its Foshan plant in Guangdong province was powered by green electricity. “FAW-Volkswagen will further pursue the strategy of goTOzero production”, said Pan. +++
+++ A new lease of life will be granted to the VOLKSWAGEN PASSAT in 2023, after the German firm gave the green light to the introduction of an all-new B9 generation. It will be built in Bratislava alongside the Touareg, although it will continue to use the brand’s MQB underpinnings. Eventually the Passat will share the same production line as the next-generation Skoda Superb, which is being developed alongside it. VW’s family car has been moved from its traditional home at Emden in Germany to make way for the ID.4 and production versions of the ID.Vizzion saloon and ID.Space Vizzion estate concepts. Autointernationaal understands that the new Passat could be offered as a spacious estate or a more practical hatchback, in place of the current saloon. Versatility and practicality will be priorities for the new model so that it places some distance between it and the sleeker, but similarly sized, Arteon. The latest Golf Variant has increased in capacity to rival the current Passat Variant, too, so the latter is feeling pressure from above and below in the VW line-up. The Passat’s wheelbase is likely to be stretched to a Superb-rivalling 2.85 metres. While that should translate into more legroom for rear-seat passengers, the extra length will also go towards improving boot space, carving out a new niche for the Passat as the brand’s most practical non-SUV or commercial vehicle-based offering. All-electric drive will be catered for by the upcoming production version of the ID.Space Vizzion, so the Passat can continue to meet the needs of buyers wanting a traditional power source. The popularity of diesel in this segment has slipped over recent years, but the Passat will continue with TDI options. The latest version of the brand’s 2.0 TDI turbocharged unit will slot under the bonnet, in states of tune ranging from 150 hp to 200 hp, while 4Motion all-wheel drive will also be available. Petrol power will play second fiddle, but will be an important bridge towards an expanded plug-in hybrid offering, with two options anticipated. The entry-level eHybrid model will develop around 204 hp, but a 245 hp GTE model is also likely to go on sale, with a larger battery than the 13 kWh unit used in the current Passat GTE. It would enable a much longer all-electric range, possibly up to 100 km. Matching the bigger pack would be improved recharging technology, with a move from 3.6 kW to 11 kW AC charging. +++