+++ Following BMW ’s latest X1 compact SUV growing in size, the German company is readying a new, larger X3 for launch in the next few years that will offer more space and practicality, a smarter cabin filled with more technology and, crucially, a wider choice of powertrains. This decision from BMW to retain combustion-engined options alongside an all-new iX3 EV will mean the new X3 family will be underpinned by 2 platforms. In combustion-engined form, the X3 will retain BMW’s more conservative approach to styling, with a relatively traditional kidney grille set-up compared with cars in its line-up such as the 4 Series/i4 and 7 Series/i7. Sharper headlight clusters that ape the brand’s just-released X1 will make an appearance, and this will also be reflected on the tailgate, with slim rearlight units. Expect more angular lines on both the front and rear bumpers, too. The petrol, diesel and plug-in hybrid X3s will be based on an evolution of BMW’s current CLAR (Cluster Architecture) multi-energy platform, while the next iX3 all-electric model will transition to bespoke underpinnings as part of BMW’s future ‘Neue Klasse’ (new class) technology. Expect a 48 volt mild-hybrid 2.0-litre 4-cylinder turbocharged petrol xDrive20i model to open the range, with the potential for a small hike in power compared with the outgoing car’s 184 bhp output, while the xDrive20d (also a 48 volt mild-hybrid unit) should also be retained. Larger 3.0-litre mild-hybrid petrol and diesel options are likely to join the 4-cylinder cars, and are set to be badged as M Performance models. As per the current X3 line-up, these could be called M40i and M40d, with the petrol motor set to produce in the region of 360 hp, and the diesel a little less, at around 340 hp. All combustion-engined cars will be linked to an 8-speed automatic gearbox and BMW’s xDrive all-wheeldrive system, including the 30e plug-in hybrid. Expect a boost in all-electric range to push the new petrol-electric X3 beyond the 80 km mark and closer to its X5 xDrive45e big brother; in more ways than one. Given that the firm’s X1 has grown in size, the next X3 will also get bigger again, offering more space inside and an increase over the current car’s 550 litres of boot capacity. There will also be improved interior technology that should further evolve the company’s infotainment set-up. Given stories this year surrounding BMW’s ConnectedDrive Functions on Demand, with an increased level of connectivity, expect these switchable services to feature more heavily on the new car. Combustion-engined models will arrive first in 2024, while the next-generation iX3 will follow later in 2025. BMW boss Oliver Zipse confirmed that an SUV would mark the debut of the new platform alongside a more conventional saloon, saying: “Our Neue Klasse is coming in 2025. For the launch we are planning a compact sedan in the 3 Series segment and a sporty SUV”. All Neue-Klasse cars will make use of BMW’s upcoming 6th generation eDrive motors and battery systems that will boost efficiency and range. BMW has confirmed that it will move to Tesla-style cylindrical cells with its Gen6 tech that will help to boost range by as much as 30 percent compared with the current Gen5 technology in cars such as the firm’s i4. It means a range of up to 800 km on a full charge could be possible, according to technical boss Frank Weber, but it’s unlikely that BMW will aim for anything greater than this because it’s thought that the firm doesn’t believe any more range in a car such as the X3 is necessary at this point. To accompany the improvement in energy density and efficiency, BMW has also confirmed the new platform will feature 800 volt electronics, while the Gen6 tech will cut charge times by around 30 percent, with a 10-to-80 percent top-up taking around 25 minutes, thanks to charging rates of up to 250 kW. Expect prices to rise beyond the current combustion-engined X3’s starting price when the new car breaks cover in 2024, while given the iX3’s all-new platform technology and significantly improved range and charging capability, the starting figure will be hiked too. +++
+++ Volvo and sister company Polestar will be partners in launching Google’s new HD MAPS SERVICE ; an integrated solution designed specifically for automotive applications that pulls realtime data to improve vehicle navigation. The new tech will launch in Volvo’s all-electric EX90 and the Polestar 3. HD Maps will integrate sensor data with real-time traffic information to better enhance route planning and will talk to the onboard Pilot Assist semi-autonomous suite to provide highly accurate information about the vehicle and its surroundings. Volvo says the new suite will be available on models equipped with its Pilot Assist system. “The addition of Google HD Maps in our future car lineup marks an expansion of our strategic collaboration with Google, reflecting our commitment to work with technology leaders”, says COO and deputy CEO Javier Varela. “Implementing Google HD Maps in our upcoming cars will help us offer our drivers a more enjoyable driving experience and in future contribute to the introduction of safe autonomous driving”. “Building on our long history of mapping the world, Google’s new HD map is designed specifically for automakers and provides comprehensive lane-level and localization data that is crucial to powering the next generation of assisted and autonomous driving systems”, says Jorgen Behrens, VP and general manager of Geo Automotive, Google. “We’re excited to continue partnering with leading automakers like Volvo Cars to improve the safety and comfort of drivers everywhere”. Volvo’s existing relationship with Google brought us the Android Automotive operating system (not to be confused with Android Auto, the app) currently rolling out across the brand’s lineup. In fact, the 2 companies announced that the latest over-the-air update the company will deploy includes Google Assistant updates. It is expected to reach 350.000 customers worldwide. +++
+++ MERCEDES has issued a recall that applies to over 320.000 SUVs built between the 2012 and 2020 model years. The vehicles included in the campaign can stall while driving due to a fuel pump control unit-related problem caused by water building up in the spare tire well. Assigned number 22V-955 by the National Highway Traffic Safety Administration (NHTSA), the recall includes 323.963 examples of the ML, the last-generation GLE and the last-generation GLE Coupe, though Mercedes estimates that the defect is present in only 1% of the recalled SUVs. Nearly every model that has been part of the line-up over the past decade is covered by the recall, including AMG’s ML63. Mercedes explains that water can enter the trunk and make its way to the spare tire well “due to a development deviation in combination with production tolerances and possible customer influences when loading and unloading items” from the trunk. If enough water accumulates, it can come in contact with the fuel pump control unit and cause it to stop working, which in turn shuts off the engine without warning. The firm is asking owners of affected SUVs to keep an eye out for damp carpet in or near the trunk and listen for the sound of water sloshing around. It doesn’t sound like Mercedes will fix the leak; instead, it’s asking owners to take their ML or GLE to the nearest dealer so that a technician can inspect the spare tire well, install a water drain plug, and replace the fuel pump control unit if it has been damaged by water. These repairs will be performed for free, and motorists who have already paid to get the issue fix can request a refund from the manufacturer. Mercedes will begin notifying owners of affected SUVs by mail before February 21. +++
+++ Leo KoGuan, a major Tesla investor who once called himself “Elon’s fanboy”, questioned whether Elon MUSK was intentionally sending the electric-car maker’s stock lower. KoGuan, who is “one of Tesla’s largest individual shareholders” per Bloomberg, had amassed about 22.6 million Tesla shares as of August 27, 2022. He made Forbes’ list of the 400 wealthiest people in the world in September in large part due to his investment in Tesla. “That’s the indisputable evidence he deliberately pushed the price down in breach of his fiduciary duty”, KoGuan tweeted on Thursday in response to another Twitter user who said Musk drove the price down when he sold more of his Tesla stock last year. “BOD (Tesla board of directors, red.) didn’t stop him also in violation of its fiduciary duty. One should ask if both the CEO and BOD are acting in one person in violation of security law?” In December, the Tesla CEO sold more of his holdings in the company after offloading nearly $40 billion in Tesla stocks in the past 15 months. At the time, he promised not to sell more stock for “probably 2 years from now”, but it’s a promise he’s made and broken in the past. KoGuan also questioned Musk’s intentions with Tesla’s stock earlier in the week. “The one that can’t be named biggest betrayal, if and only if true, he purposely crushed Tesla stock price and its SH (shareholders, red.) for his tax benefits and potential new stock options granted by himself bc he is both the CEO and BOD?” KoGuan tweeted on Wednesday morning. “Fund Managers of Tesla, are you listening?” KoGuan directed his Wednesday tweet at Alex Lagetko, the founder of VSO Capital, a small private investment firm. Lagetko said in a long thread on Twitter that was posted in response to KoGuan that he believes Musk’s “would benefit from sandbagging financial results (manifested in underreporting sales and profits)”, pointing to Musk’s Tesla compensation plan, which has been contested in a shareholder lawsuit against Tesla and Musk. Musk’s pay package centers on a series of goalposts around the carmaker’s financial growth which was set in place in 2018. Specifically, the plan involves a 10-year grant of 12 tranches of stock options, which are vested when Tesla hits certain targets. When each milestone is passed, Musk gets stock equal to 1% of outstanding shares at the time of the grant. The company has since surpassed the metrics. “Because Musk achieved all Market Cap milestones in 2021, he no longer had any incentive under the compensation plan to maximize shareholder value”, Lagetko tweeted. “He had every incentive to see the stock lower (for tax reasons) or to pursue personal aspirations (purchasing Twitter) knowing he had a massive slug of fresh options coming which he could exercise when the shares are trading as low as possible”. On Friday morning, Tesla stock was trading around $105 per share, its lowest since August 12, 2020, amid slowing demand from China. Earlier this year, Musk became the first person to ever lose $200 billion in net worth. The Tesla CEO’s fortune, largely tied to his shares in Tesla, declined as the company’s stock price tumbled. Some analysts have attributed the drop in share price to Musk’s focus on Twitter in addition to the economic downturn. But, last month Musk told shareholders he would make sure they “benefit from Twitter longterm”. KoGuan has been critical of Musk’s involvement with Twitter in the past. In December, he said on Twitter that Tesla needs a new CEO. Though, on Thursday, KoGuan said he plans to buy over 1 million Tesla shares this month and told his followers on Twitter he is speaking out against Musk to protect “blind cult fanboys from themselves”. “I was his blind fanboy, but no more. I can’t rescue Tesla alone”, he tweeted. “We need all SH and Institutional fund managers to correct the anomaly of Tesla governance bc we love Tesla”. +++
+++ TESLA cut prices in China for the second time in less than three months on Friday, fuelling forecasts of a wider price war amid weaker demand in the world’s largest autos market. The U.S. automaker also cut prices on its Model Y and Model 3 electric vehicles in Japan, South Korea and Australia in what a person with direct knowledge of the plan said was part of an effort to help stoke demand for output from its Shanghai factory, its single largest production hub. Tesla shares fell 4.5% in premarket trading after the first major move by Tesla since appointing its lead executive for China and Asia, Tom Zhu, to oversee global output and deliveries. Automakers have long turned to incentives to control inventory, but, until late last year, Tesla had been able to keep prices steady or even raise them due to strong orders. But last month CEO Elon Musk said “radical interest rate changes” had affected the affordability of all cars, new and used, and that Tesla could cut prices to sustain volume growth. The latest cut in China, along with another in October and recent incentives for Chinese buyers, mean a 13% to 24% reduction in Tesla’s prices from September in its second-largest market after the United States, calculations showed. Tesla slashed prices for all its Model 3 and Model Y cars in China by between 6% to 13.5%, according to calculations based on the website prices. The starting price for the Model 3 was cut to 229,900 yuan ($33,427), from 265,900 yuan. Grace Tao, Tesla’s vice president in charge of external communications in China, said on Weibo that the price cuts in China reflected engineering innovation and answered Beijing’s call to encourage economic development and consumption. Deliveries of Tesla’s China-made cars hit their lowest in 5 months in December. Tesla’s Shanghai plant, which was expanded last year, also exports vehicles to Europe. So far, there has been no sign of Tesla cutting prices in Europe, where according to sales data from research group JATO Dynamics sales jumped 93% in November year-on-year and the Model Y was the topselling car for the second time in 2022. Tesla also saw its share of Europe’s battery electric vehicle (BEV) market jump to 18.9% in November, from 12.3% in the same month a year earlier. The cuts came days after Beijing ended a subsidy programme, with softening demand forcing Tesla and rivals to absorb the brunt of the move. China Merchants Bank International (CMBI) said that Tesla may have to do more, especially as competition with Chinese rivals intensifies. “Tesla needs to further cut prices and expand its sales network in China’s lower-tier cities amid ageing models”, said CMBI analyst Shi Ji. “We expect new EV production capacity in China to outpace new demand in 2023”. But Sun Shaojun, a popular China auto blogger, said on Weibo that Tesla’s price cuts were so large that other automakers, including larger rival BYD would have to respond. BYD recently raised the prices for its bestselling models after the government’s subsidies ended. After the price cut, Tesla’s Model 3 was the equivalent of about $1.000 more that BYD’s Seal, a model launched in July. The Model 3 is now the same price as BYD’s bestselling Han EV. BYD declined to comment on competitors’ pricing, but said it would adjust its own according to changes in market demand. BYD, which sells both plug-in and pure electric vehicles, saw its retail sales in China double in December, while Tesla’s fell 42%, according to data from CMBI. Some Tesla owners in China who took delivery in recent months and did not qualify for the reduced prices said on Friday that they planned protests at its showrooms in Shenzhen and Henan, screenshots of social media chats showed. The China prices of the Model 3 and Model Y cars are now 24% to 32% lower than those in the United States, Tesla’s largest market, calculations showed, reflecting a range of factors including material and labor costs. Tesla also cut Model 3 and Model Y prices by about 10% each in Japan, the first time it had done so since 2021. In the United States, the Model Y and Model 3 are eligible for up to $7,500 in clean vehicle tax credits as of this month under the Biden administration’s Inflation Reduction Act, which became law in August. In 2021, China accounted for just over a third of Tesla’s overall sales. +++
+++ TESLA MODEL S AND MODEL X buyers who don’t like the idea of steering their car with a yoke can again order a conventional steering wheel. The EVs lost their steering wheel as part of an update a couple of years ago, and the company recently brought it back by popular demand. Once touted as “the interior of the future”, the yoke was well-received by some drivers and lambasted by others. Some motorists pointed out that it made the Model S and the Model X needlessly awkward to maneuver at low speeds (like when making a 3 point turn) because the steering system’s ratio isn’t variable. Lexus offers a yoke in the RZ, too, but the steering lock is set to 150 degrees and the ratio is variable. Tesla responded to its critics by letting customers choose how they steer. When ordering a new Model S or Model X, buyers can select a steering wheel as a no-cost option or keep the standard yoke. The type of steering apparatus chosen doesn’t affect the delivery time. This is a fairly rare move for a company that, in its short existence, has gone to great lengths to keep the number of options it offers to a minimum. Folks who ordered a Model S or a Model X with a yoke aren’t stuck with it. Tesla will offer a steering wheel retrofit kit starting in March 2023. It’s priced at $700 including installation. Several aftermarket retrofit kits are available as well, though many are considerably more expensive. +++