+++ ALFA ROMEO is kick-starting its recovery under new owner Stellantis with the newly launched Tonale, but the company isn’t likely to wait too long before it ends enthusiasts’ wait for a successor to the fabled Duetto Spider. Alfa Romeo’s CEO Jean-Philippe Imparato has previously revealed that work on a reborn roadster has already been prepared by the company’s design chief Alejandro Masonero-Romanos, while insisting that a return for a badge last seen more than a decade ago cannot even be considered until higher-volume models have been successfully launched or renewed. Now, Imparato has started to quantify how much of Alfa’s range will need to be rebuilt before the drop-top can reappear. When asked directly how many vehicles would need to beef up Alfa’s profits before the roadster could be made, Imparato replied, “5. In fact, let me rephrase the point. It’s like asking how long do we need to do the job? And the answer is 5 years. We have to act from now. Tonale is first, then there will be more in 2023 and 2024. And then, between 2025 and 2026 we can ask, ‘Where are we?’ The conclusion will be that we are sustainable, that we exist in three regions in the world, and that we are known for our performance and quality”. “But we will think about doing the Duetto far before then. I will not tell you an exact date, but it will be far before”. Imparato has consistently referred to the vehicle as “Duetto”, a strong hint that Masonero-Romanos is taking inspiration not from the front-wheel-drive Spider that disappeared from showrooms in 2006, but rather the classic rear-drive model that was made between 1966 and 1993. The new car will be electric only, and it is all but certain to make use of parent group Stellantis’s forthcoming pure-electric architecture, named STLA. Imparato confirmed that his brand will avoid the smallest of the STLA trio of platforms and focus on Medium and Large. It’s the first of these that’s likely to be the basis for a new Spider, since it can support vehicles as small as around 4.3 metres in length. It can offer a battery size of between 87 kWh and 104 kWh and electric motors with power from 170 hp to 245 hp. It’s likely, given the weight, that the second of these would be used for a rear-drive Duetto, allowing engineers to then fit a motor on each axle to produce more powerful four-wheeldrive editions. Tonale aside, the models that Alfa needs to launch will include a larger SUV to sit above the Stelvio in the range, as well as an all-electric follow-up for that car and an EV saloon to replace the Giulia. Before those, the next vehicle will be a small SUV. Imparato confirmed that the car’s design has been signed off, ahead of a possible reveal in 2023. “The look has been finalised,” he said, “so yes, the next launch will be in the B-SUV segment. It will be an amazing shape”. He said the smaller, cheaper SUV needed to appeal to Alfa fans who’ve previously owned a MiTo or Giulietta. “We cannot put Alfa Romeo into a corner where there are only petrolheads and 500 hp cars”, he said. “We lost 1.5 million people (the guys with the Giulietta or the MiTo) who are not expecting 250 hp in their car. And I have to pull them back”. +++
+++ Like Bigfoot and the Loch Ness Monster, rumors of an APPLE car never seem to die. But unlike Sasquatch and Nessie, at least there have been various verified sightings of Apple testing its self-driving technology, albeit on production vehicles. The idea of an Apple car has circulated since Steve Jobs’ death more than a decade ago, with company executives and board members revealing the revered company co-founder’s vague vision for entering the automotive business. But it’s his successor and current Apple CEO Tim Cook who took the reins of the storied company and steered development of a vehicle. Cook greenlighted Project Titan in 2014 to build an electric vehicle and brought onboard auto industry veterans such as former Ford executive Doug Field, fellow Ford engineer Steve Zadesky and Mercedes-Benz North American R&D honcho Johann Jungwirth, who have all since left. Cook even jetted to Germany in 2015 to meet with BMW brass, and Apple executives traveled to Leipzig to scrutinize the production of the automaker’s i3. The iCar rumor mill gained renewed momentum last week when it was revealed that Apple had hired 31-year Ford veteran Desi Ujkashevic, the latest in a revolving door of automotive execs who have joined the company. Google Cars I won’t detail the tortured twists and turns of Project Titan since it’s been painstakingly documented by tech sites. Suffice to say that despite hiring (and losing) top automotive talent, Apple still isn’t making a car. And I believe it would be a massive mistake for Apple to build a car or even have others build it for them. There are obvious drawbacks to getting involved in a high-cost, low-margin business that involves complex supply chains, the need to support legacy products with parts and services for decades, and the most onerous regulation of practically any industry. Contrast this with Apple’s current cash-cow business developing and selling products and services that have a highly controlled and contained supply chain, product lifespans of a few years with rapid planned obsolescence, and a relatively light regulatory load. With a market cap of nearly $2.5 trillion and a stash of more than $200 billion in cash, Apple has the resources to mount an attack on automotive incumbents, and even take on Tesla. The timing is right given the tectonic shift occurring in the auto industry, with the transition to electrification rewriting the rules of engagement and the growing importance of software playing to Apple’s strength. But stacks of money and tech expertise don’t translate into success in automotive. Just ask Google, which tried (and failed) to build its own car several years ago. Google’s Firefly purpose-built self-driving car without a steering wheel or pedals was unveiled in 2014, and that same year Google lined up an all-start roster of automotive suppliers including Bosch, Continental, Nvidia and Roush to build 100 of the vehicles at a Detroit-area facility. While Google called Firefly “a test platform” for its self-driving technology, evidence suggests the company planned to mass produce the vehicle. I spoke with Samir Salman, CEO of Continental’s North American unit, at the time and he indicated that the mega supplier was working with Google to “provide our services and knowledge on the technical side in components and in systems”, he said. “We’re supplying brake systems, tires, and body controller and interior electronics”. But Waymo, the autonomous-vehicle technology subsidiary Google created at the end of 2016, mothballed Firefly and subsequently purchased tens of thousands of the Chrysler Pacifica Hybrid and the Jaguar I-Pace. It has since integrated its self-driving tech into the vehicles and become one of the first companies to operate a fully autonomous ride-sharing service. By 2018, Apple’s plans to build an iCar were reduced to a deal with Volkswagen to convert the automaker’s T6 Transporter vans into autonomous shuttles for employees at the company’s new Silicon Valley campus. But even that plan fizzled since VW invested $2.6 billion in Ford-backed Argo AI, with its new ID.Buzz electric minivan subsequently set to be a vessel for Argo’s self-driving tech. Given all the highs and low of Apple’s Project Titan, I’m surprised the company doesn’t view building cars as a quicksand money pit, and that it would be best to focus on providing much-needed software services to the auto industry a la Apple CarPlay. But Google beat Apple to the punch at that with its Android Automotive OS, which is gaining traction. Besides, as annoying as Tesla-Stans can be, imagine what it would be like to deal with Apple Car fanboys and -girls? +++
+++ HYUNDAI and KIA will invest W21 trillion by 2030 to boost electric vehicle production in South Korea to 1.44 million a year (US$1=W1,266). That will account for 45 percent of their global EV production goal by then. It is about half of Hyundai-Kia’s total car production and more than 6 times the output of electric vehicles in South Korea last year. The aim is to shift the focus of the domestic auto industry to eco-friendly vehicles. “In 2030, Hyundai will manufacture a large proportion of EVs at plants in Ulsan, Asan and Jeonju and Kia at its Gwangmyeong, Hwaseong and Gwangju factories”, an insider said. In comparison, the 2 carmakers in May last year pledged to spend US$7.4 billion to expand their EV production in the U.S. by 2030. At present, Hyundai’s Ulsan No. 1 factory rolls out the Ionic 5 and Kona Electric, while plants number 2-5 also make 1 electric vehicle model each. Altogether each plant manufactures 4 to 6 models. Kia makes EVs at only 4 out of 8 factories in South Korea: the EV6 in Hwaseong and the Soul Electric plus Bongo Electric in Gwangju. Kia is building its first new factory in 25 years in Korea, and it will be dedicated to purpose-built vehicles. Construction will start in the first half of next year, with production scheduled to begin in the second half of 2025 with an annual output capacity of 100.000 cars that will be expanded to 150.000. By 2030, Hyundai will have 18 electric models in its stable and Kia 13. They will unveil the Ionic 6 and EV6 GT this year, the EV9 in 2023 and Ionic 7 in 2024. But concerns are rising over job losses as EVs require fewer and less labor-intensive parts than combustion engine vehicles. Hyundai said its own domestic plants will gradually adopt flexible production, tailored logistics and digital manufacturing systems. In other words, they will operate with as few workers as possible. Hyundai employs around 30.000 production workers, but the number is expected to decline to around 20.000 by 2030 as older workers retire but few new ones are hired to replace them. The change is a challenge for parts makers. According to the Korea Automotive Technology Institute, only 400 out of 4.600 automotive part makers here can currently manufacture EV components. +++
+++ The HYUNDAI MOTOR GROUP announced a $5 billion investment in the United States through 2025 for innovative mobility technologies, a day after announcing a similarly sized investment to build an electric vehicle (EV) plant in Georgia. The announcement was made by chairman Euisun Chung sunday morning during his meeting with U.S. President Joe Biden held at Grand Hyatt Seoul in Yongsan, central Seoul. “Hyundai Motor Group plans to invest an additional $5 billion through 2025, which will strengthen our collaboration with American enterprises in diverse technologies, such as robotics, urban air mobility, autonomous driving and artificial intelligence”, said Chung. “In total, this makes the sum of our new U.S. investment to over $10 billion. We also stand ready to work towards achieving the Biden Administration’s goal of achieving 40 to 50 percent zero-emission EV sales in the United States by 2030. The investment plan came a day after the company announced its intention to spend $5.54 billion to build an EV factory and a battery-cell plant in Georgia. The Georgia factory will be built on a 2.923-acre site in Bryan County, Georgia, around 400 kilometers from an existing Kia factory. It is the group’s first EV-dedicated facility in the United States. Groundbreaking is scheduled for early 2023, with the goal of starting production in the first half of 2025. Annual capacity will be around 300.000 units. The new factory is expected to create about 8.100 new jobs, the group said. “Workers in Georgia who will build these plants and manufacture this new electric battery technology means economic opportunity for an awful lot of Americans”, Biden said. “Electric vehicles are good for our climate goals, but they’re also good for jobs. And they’re good for business”, he added. “Chairman Chung, thank you again for choosing United States. We won’t let you down”. The meeting between Chung and Biden was originally planned for 10 minutes, but extended to around 50 minutes, Hyundai said. Hyundai’s latest investments are in line with the company’s plan of investing a total of $7.4 billion in the United States through 2025. The country is the third largest EV market after China and Germany. Hyundai owns a plant in Montgomery, in which only combustion engine cars are being made so far. The automaker recently said it will spend $300 million on the plant to update the existing assembly line to start making electric vehicles there starting from the second half. Production of the Santa Fe Hybrid will begin in Alabama in October. The electrified Genesis GV70 will be manufactured there from December. The expansion will create 200 new jobs, according to the carmaker. Kia runs a plant in Georgia, and Hyundai owns about 33.9 percent of Kia. Hyundai and Kia aim to sell a total of 3.23 million electric vehicles globally in 2030, gaining a combined market share of 12 percent. The Hyundai Motor Group did not provide a breakdown on which companies would be making the investments and what their stakes will be in the new factory and other investments. +++
+++ KIA has announced plans to set up a new production site for a new range of purpose-built electric vans, as part of a wider remit to launch an array of battery-powered vehicles before 2030. Building on from the firm’s “Plan S” business strategy, which has seen the company commit to launching no less than 11 fully electric passenger cars worldwide by 2027, Kia will start building a new factory for what it describes as “Purpose Built Vehicles”, or PBVs, by summer 2023. The new plant is expected to be finished at the earliest by 2026, and initially have the capacity to produce around 100.000 PBVs per year. The first vehicle to roll off the new plant’s production line will be a mid-size vehicle, which is currently only known by its “SW” project name. However, Kia did specify when it outlined its Plan S strategy in March 2022 this new vehicle would be available in a selection of body styles, which would allow the PBV to fulfil roles as either a delivery van or a ride-hailing passenger shuttle. As explained by the Kia CEO Ho Sung Song at the Plan S strategy announcement, the company is also interested in launching a self-driving robotaxi version of its SW. No definitive release window for this SW derivative has been revealed yet, though Kia has suggested this robotaxi model will potentially be capable of level 4 autonomy, meaning there will still be physical controls like pedals and a steering wheel inside, but the vehicle will be able to drive itself in controlled areas without human intervention. Kia’s PBV plans go beyond its mid-size commercial vehicle that’s due in 2025, too. Using the same ‘skateboard’ technology underpinning the SW, Kia intends to launch a selection of purpose-built electric vehicles in a variety of shapes and sizes. These, Kia claims, will range from small unmanned delivery vehicles to larger passenger shuttles and PBVs that will allegedly be big enough to be used as mobile shops and office spaces. These electric PBV plans are in addition to the already comprehensive range of electric passenger cars that Kia plans on launching over a similar timeframe. Including the EV6 , Kia will launch 14 electric vehicles worldwide by 2027. Of that total, 7 of them will be exclusively electric, such as the EV9 large SUV that’s due in 2023, with the remaining total consisting of electric cars derived from combustion-powered models like the new second-generation Kia e-Niro. +++
+++ The new 2022 Range Rover has taken noticeable steps forward in terms of luxury, refinement and quality, and so have prices, but at least 10.000 people have paid no heed to the increased cost by placing an order. Jaguar Land Rover UK managing director Rawdon Glover noted at the UK launch that the average specced-out price of a fifth-generation ‘L460’ Range Rover sold in the country is £125.000, a huge increase over the £100,000 average for the outgoing ‘L405’. Glover added: “We’ve got about 10.000 orders we’re looking to fulfil in the UK, and reaction globally has been equally as strong. So we’ve got about a 12-month waiting list, which is probably about as far as I’d want that to go”, Glover talked of freeing up additional production volume “because we probably don’t have sufficient capacity to fulfil all the demand across the globe”, although LAND ROVER doesn’t want to go too far in this regard. “Scarceness and rarity are two qualities that you absolutely associate with modern luxury, so we need to make sure we never get to the point where it’s over-supplied. But getting that balance right for lead times is key”, Glover explained. He also thinks increased competition, along with the new Range Rover’s technology uplift, has helped justify the higher prices, particularly for the most expensive specs with high levels of personalisation. The Range Rover now has 2 luxurious rivals it didn’t have at the time of the L405’s launch (the Bentley Bentayga and the Rolls-Royce Cullinan), which Glover alluded to. “The entrants above us that have come in. They’ve raised the ceiling in terms of customers’ aspirations in terms of how far they can go”, he said, adding: “We’ve had the first £200,000 Range Rover, and having that competitive set in there makes that a little more straightforward in terms of the customer’s ability to bespoke a car and have increased levels of luxury and refinement. In some respects, competition can be a good thing.” Some of Land Rover’s most loyal customers were invited to see the car before its global unveiling via the company’s Inside Track scheme. Glover said that those who were later given the opportunity to drive it were “blown away by the additional refinement, and the evolution in terms of the handling”. Around 40 percent of buyers have opted for diesel engines, 35 percent chose petrol, and the remaining quarter settled on plug-in hybrid models. The new 7-seat option has proven popular, with around 50 percent selecting it. +++
+++ If you need further proof that the auto market its lopsided in favor of the high end right now, it’s here. MERCEDES-BENZ plans to cut 43 percent of its entry level offerings, while adding an upmarket line of cars even more exclusive than Maybach. The lower end of the market simply isn’t profitable enough, so the company is putting more than 75% of its budget towards enticing customers who demand ultra luxury. The strategy was outlined in a session called “Economics of Desire” hosted on the Côte d’Azur. Mercedes-Benz credits its shift to a 2021 sales figures, which saw record breaking sales of AMG and Maybach models. In its core brand, the flagship sedan S-Class saw a jump of 40%. These vehicles, plus the G-Class, EQ and EQS, comprise what Mercedes calls its “Top-End” category. Using 2019 as a baseline, this group will see a sales growth of 60% by 2026 if everything goes according to plan. Soon, that will include a series of “ultra-exclusive collector cars’ called the Mythos Series. Little was revealed about the line, but production will be limited and the cars will be offered only to “the most dedicated enthusiasts and collectors of Mercedes-Benz”. Additionally, the AMG.EA platform underpinning the Vision AMG concept will be a key part of Top-End expansion, as are the limited edition and collaboration specials such as the Virgil Abloh Maybach that had a run of 150 units. Mercedes also said it was looking for ways to grow the G product family beyond the upcoming electric G-Class. The next category down is called “Core Luxury”, which includes the C- and E-Class and their derivative models, as well as electric cars built on the EVA2 platform (EQE) and MB.EA platforms. A new E-Class will make its debut in 2023 to headline this segment. Last, and apparently least, there’s the “Entry Level” category, which currently includes the A- (hatchback and Limousine), B-, CLA- (including the Shooting Brake) and GLA-, GLB Class cars. It’s not clear which ones will get the axe, but 3 out of 7 will be scuttled. Whatever’s left will be developed on the compact MMA platform, which launches in 2024 alongside the MB.OS operating system. Mercedes-Benz plans to go fully electric with new car sales by 2030 “wherever market conditions allow” and has “the ambition to become CO2-neutral by 2039”, according to a press release. The shift in strategy is a departure from the company’s former market share-grabbing approach that spawned models like the CLA. We’re seeing brands specialize as they venture into the electric and possibly autonomous future. As cars converge in functonality and capability, companies will have to depend on other characteristics, like brand and exclusivity, to stand out. +++
+++ Production of Russia’s Soviet-era car brand MOSKVICH could resume using a Chinese platform in partnership with truckmaker Kamaz, 2 sources told, with the model to be built at Renault’s former Moscow factory. The sources told that Kamaz was in talks with its partner, Chinese carmaker JAC, about using its design, engineering and production platform to produce the brand. Kamaz and Moskvich declined to comment. The Moskvich is set to make a surprise comeback in Russia as Moscow takes over assets belonging to Renault, after the French carmaker said it was selling its majority stake in Avtovaz to a Russian science institute. Russian business daily Vedomosti cited a source as saying that production would begin no later than the fourth quarter of this year. +++
+++ SSANGYONG said it has signed a conditional investment deal with a local consortium ahead of the auction later this month to find a new investor for the carmaker. The Seoul Bankruptcy Court recently selected the consortium led by chemical-to-steel firm KG Group as the preliminary bidder for SsangYong. The new auction comes 2 months after local electric bus maker Edison Motors failed to make a full payment of 304.8 billion won (US$249 million) for the debt-laden carmaker by the March 25 deadline. SsangYong and its lead manager EY Hanyoung accounting firm accepted the KG-Pavilion PE consortium as the consortium beat others in terms of acquisition price, fundraising plans, and employment guarantee period. In the stalking horse bid, the preliminary bidder suggests its price for SsangYong ahead of the auction, and other bidders submit their prices in the auction. If a company submits a price higher than the stalking horse’s price, SsangYong will ask the stalking horse if it can pay the highest bidding price to buy the carmaker. Last month, 4 firms (KG Group, Pavilion PE, EV parts maker EL B&T and underwear company Ssangbangwool) submitted letters of intent to EY Hanyoung. KG and Pavilion PE formed a consortium after submitting LOIs. The KG consortium and Ssangbangwool Group reportedly suggested bidding prices of 900 billion won and 800 billion won, respectively, for SsangYong. The prices are far higher than Edison’s price. Ssangbangwool said it will participate in the upcoming auction regardless of the preliminary bidder selection. The Seoul Bankruptcy Court extended the deadline for SsangYong to find a new owner and submit a new restructuring plan by 6 months until October 15. SsangYong aims to select a preferred bidder at the end of June, sign a deal in early July, submit its rehabilitation plan to the court in late July and obtain the court’s approval for its restructuring plan in late August. SsangYong has been under court receivership since April 15, 2021, after its Indian parent Mahindra failed to attract an investor amid the Covid-19 pandemic and its worsening financial status. The latest deal’s collapse due to Edison’s failure to make payments marks yet another setback for the SUV-focused carmaker. +++