+++ As AUDI fleshes out its electric car line-up, it is embracing a new model naming strategy that gives combustion cars an odd-numbered badge and their EV counterparts an even number. The new electric A6 e-Tron, for example, will be sold from 2024 alongside an updated version of the current A6, which will switch to the A7 moniker. Similarly, the new Q6 e-Tron is positioned as an electric alternative to the best-selling Q5, which will enter a new generation with combustion drivetrains in 2024. Asked about the thinking behind the new strategy, Audi technical boss Oliver Hoffmann explained that it will ultimately become an automatic and obvious means of differentiation between the 2 powertrain types. Hoffmann said: “It is to have a clear structure for our customers. In the D SUV segment today, we have the Q5, and you could say that there is a Q5 ICE and we would bring the Q5 e-Tron, maybe, but we decided we would have a clear strategy for our model line-up. One example is the A6. The A6 is a car which is in our core segment and we will show that with the upcoming A6 e-Tron. This is our main model in the E-segment and the future is fully electric, so therefore we decided to give the even numbers to the BEV cars”. Asked if this new system means Audi can drop the e-Tron suffix it has used for electrified cars since 2009, Hoffmann said: “In the future, A6 will be clear as the battery-electric vehicle. It will be the A6 e-Tron, like the Q6 e-Tron, but if anyone says ’this is the Q6′, you know it is the battery-electric vehicle. You don’t have to use the e-Tron badge or ICE badge”. The e-Tron badge will remain but will come to be used more subtly, like the TDI and TFSI badges Audi uses today to mark out diesel and petrol models. “If you look at the whole market, you have a lot of badges to show ’this is an electric car’, ’this is a PHEV’, and from our point of view, this is a clear structure of naming”, Hoffmann said. +++
+++ Shares in automakers from CHINA slid recently following reports that the European Commission is considering a crackdown on cheap EVs that have been flooding the market. If the tariffs come to fruition, it could have dire consequences on China’s auto export push that has seen cars outperform most locally-produced items in the face of waning demand for MIC products. Customs data shows that Chinese new energy vehicle shipments (which includes both hybrids and EVs) to the European Union increased by 112 percent in the first 7 months of 2023 and a staggering 361 percent from 2021. How is China able to offer the world, and Europe in particular, so many cheap EVs? Well, firstly, it comes down to overcapacity. Bill Russo, CEO of Shanghai-based advisory firm, Automobility, thinks China has an excess capacity of 10 million vehicles yearly. The excess supply and the fact that Beijing is subsidizing EVs has led the European Commission to conclude that Chinese EVs are typically a fifth cheaper than the equivalent EU-made models. Through 2021, the country is estimated to have paid in the region of $15 billion as EV incentives, but that subsidies have been in effect since 2009. Then, in June 2023, China revealed yet more tax breaks for EVs and green cars. The latest package totals 520 billion Yuan ($72 billion), which will be disbursed over the next 4 years. AlixPartners estimates that China spent $57 billion between 2016 and 2022 on EV and hybrid incentives. The draw is strong, even for the West, with multiple car plants being opened by foreign automakers. This includes the likes of Tesla (Model Y), BMW (iX3) and Renault (Dacia Spring). Meanwhile, others, such as Volkswagen’s recent deal with Xpeng, have taken their own steps to ensure the production of locally-tailored models. Either way, automakers operating in China are undoubtedly benefiting from their homegrown subsidies. The world’s biggest battery maker is Chinese-based CATL, while BYD has beaten Volkswagen to become the best-selling domestic automotive brand. In terms of exports, Europe has been seen as a key growth market for Chinese automakers. The EU’s strict emissions regulations and the proposed ban on the sale of ICE vehicles make electric an easier sell. With Trump-era tariffs restricting the viability of Chinese-origin car sales in the U.S., Europe has become the de facto go-to for trade. It would appear that the European Commission is not happy with having the bloc overrun with EVs from China. And despite the option of cheaper, more accessible new tech being a useful tool to drive up the rate of adoption, leaders may be more interested in protecting their own auto industry. Last week, the European Commission announced that it would be launching an investigation into whether tariffs should be used to combat the “artificially low” prices of Chinese EVs. A verdict will be delivered within the next 13 months. “Global markets are now flooded with cheaper electric cars. And their price is kept artificially low by huge state subsidies”, European Commission president Ursula von der Leyen told fellow EU lawmakers. And it’s not just bureaucrats that have shown concern. Senior car industry figures such as Stellantis CEO Carlos Tavares have expressed similar views, with doubts about the ability of Western brands taking on those from the East. During president Trump’s time in the White House, Chinese ICE and EVs were hit with a 25 percent tariff; a policy that continues to this day. Some manufacturers, such as Geely-owned Volvo, are able to offset these against credits earned from vehicles they export from U.S.-based factories. But while cheaper cars from China may threaten the home-grown market, the EU must be on guard against any retaliation from Beijing. China’s Ministry of Commerce has already set off a warning flare, calling the investigation a “naked protectionist act that will seriously disrupt and distort the global automotive industry and supply chain, including the EU, and will have a negative impact on China-EU economic and trade relations”. China is a large market for many European brands. Therefore, the EU must be careful so as not to shoot itself in the foot by landing Western automakers in the crossfire, particularly BMW, Renault and Stellantis, which produce cars in China for export to Europe. +++
+++ LEXUS international president Takashi Watanabe will have the difficult mission of steering the brand through a massive EV overhaul starting from 2026. That’s when Lexus will begin launching its next-generation electric vehicles, which will be previewed next month by a concept debuting at the Japan Mobility Show. The next-generation BEV that Lexus will introduce in 2026 will be built on a modular architecture, with significantly altered production methods and a completely re-imagined software platform, Watanabe said earlier this month at a vehicle and technology showcase at Fuji Speedway. “We have also prioritized vehicle design to embody the essence of Lexus”, he told. In doing so, Lexus will try to drive down costs by commoditizing the hardware as much as possible to compete with global EV leader Tesla and China’s BYD. Speaking of Tesla, Watanabe did not shy away from admitting that Lexus has a lot to learn from the American carmaker. “We need to make it easier to build and simplify as much as possible”, Watanabe said, adding that it is “important to humbly look at and learn from” Tesla’s achievements. “One of our first steps will be modifying and rethinking our production methods”. Lexus will benefit from new production techniques being developed by Toyota, including cars that drive themselves through assembly lines and the adoption of giga casting techniques to greatly reduce the number of components. The Japanese luxury brand is also looking for ways to make its cars stand out in the age of commoditized EVs. According to Watanabe, Lexus needs to be more unique, but first it needs to define what that means. “If we rely only on product alone, we probably can’t get as far as we need to go. We need to offer more. After the customer has bought the product, what other kind of experiences are possible?” One way to accomplish that is to diversify the brand lineup to appeal to regional needs, Watanabe said. This has already started to happen with Lexus’ gas-and hybrid-powered vehicles, and it remains to be seen if the same strategy will be adopted for EVs. Lexus previously said it would be capable of selling 1 million EVs annually in 2030, which is a huge ramp-up from the current production. Toyota and Lexus combined sold just 25.000 EVs worldwide in 2022. Lexus only has one EV in its current Dutch lineup, the RZ 450e, of which it sold just 48 units through August of this year. In other European markets, the brand also sells the UX 300e. Still, the luxury brand aims to spearhead parent company Toyota’s next-generation EVs by offering an electrified option for every vehicle in 2030, before going EV-only by 2035. +++
+++ An estate-bodied LOTUS Emeya is on the cards, which would effectively give the marque a fourth ‘lifestyle’ model line and serve as a rival to the Porsche Taycan Sport Turismo. Design chief Ben Payne declined to confirm whether plans for a shooting brake Emeya exist, but he said: “Let’s just say I know a lot of creative people that these kinds of products appeal to. The design team is always looking at the next opportunity and how we can do something a bit different and get more opportunities. Is it in the product plan? I can’t comment on that”. This echoes the thrust of Lotus commercial boss Mike Johnstone’s comments: “Consumer tastes change. New market segments appear and new technologies come into play that mean we could do things in a different way. We’re always looking for new opportunities to make sure we can maximise”. Such a model has the potential to be the most powerful series production estate car yet, given the Emeya R packs about 150 hp more than the Taycan Turbo S Sport Turismo, the current title holder. The ground-up reinvention of Lotus continues apace as the brand takes a bold leap into another new segment with the Emeya; a sleek electric sports saloon conceived to rival the Porsche Taycan and Tesla Model S. Carrying the torch from the Lotus Omega into the electric era, the Emeya arrives just 18 months after Lotus revealed its first SUV, the Eletre, as part of a new family of lifestyle-oriented electric cars engineered and built in Wuhan, China. The Emeya is based on Lotus’s new Electric Premium Architecture. This bespoke structure is adaptable to suit various car segments as well as different battery sizes, electric motors, component layouts and intelligent driving technologies. Although they are entirely unrelated to the sports cars Lotus still builds in Hethel, outstanding performance remains a priority for these new-era EVs. As a result, the fastest Emeya packs a dual-motor powertrain that sends up to 918 hp and 985 Nm through all 4 wheels. That’s sufficient for 0-100 kph in 2.8 seconds, matching the top-link Taycan Turbo S and making the Emeya one of the quickest 4-doors on the market. +++
+++ When Mercedes wants one of its premium vehicles to become a luxury vehicle, it turns to MAYBACH . Now, it wants the sub-brand to take another step into the realm of ultra-luxury with high-end, wildly-exclusive models that cost millions of dollars. The idea is one that has been gaining traction in the automotive industry, with recent hyper-high-end vehicles like the Rolls-Royce Amethyst Droptail, the Alfa Romeo 33 Stradale and the Bentley Batur all pushing the envelope in terms of luxury and small production numbers. Now, Mercedes wants in on the game. “We are going to turn Maybach into kind of a coachbuilt super-Mercedes which lifts personalization to a whole new level”, an unnamed senior source told. The vehicles will put a premium on luxury, exclusivity, craftsmanship, safety and comfort. Therefore, Maybach will be tasked with creating limited-run vehicles and even one-offs commissioned by well-heeled customers. It may also produce future examples of what are called “Myth” or “Legend” cars. Among the vehicles being considered under this last category are a 2+2 sports inspired by the 300SL ‘Gullwing’; a pillarless 4-door 4-seater luxury coupe billed as the ultimate SEC-Class; a low-roof SUV based on the electric G-wagen; a roadworthy version of the Vision One-Eleven that could be called the C111 Reimagined; the EQS Shooting Brake; a very low-drag version of the EQS SUV dubbed the Streamliner, and more. However, those models will constitute special projects for the brand, which will continue to make its bread-and-butter products: more luxurious versions of Mercedes vehicles. Among those will be a flagship electric sedan based on the upcoming MB.EA-L platform that will get high-end interior accommodations and virtual-reality technology. Unfortunately, it is not clear when Maybach plans to unveil its first ultra luxurious model, but rich clients are no doubt already receiving phone calls for consultations from the brand. +++
+++ SKODA will launch 2 new products this fall: the Kodiaq and the Superb. The pair have just completed an intensive test regiment that evaluated the 2 new models in various climates, including the frigid Arctic cold and the scorching Arizona heat. The Czech automaker begins virtual testing new models about 4 years before they go on sale. Real-world testing takes place about 2 years before a model launches. The Kodiaq and Superb traversed more than 1 million kilometers over 2 years, with the automaker simulating 40 years of real-world use via additional endurance and material assessments on test rigs and in laboratories. The 2 new models experienced temperatures ranging from -30 to 50 degrees Celsius (-22 to 122 Fahrenheit). The cars travelled north of the Arctic Circle while visiting Arizona, Spain and Africa. In the Austrian Alps, the pair faced 13-percent inclines while driving the Grossglockner High Alpine Road, helping the automaker study the models’ brake efficiency and thermal regulation. The tests in various climates also helped the Skoda evaluate the thermal behavior of the brand’s new plug-in hybrid powertrain. The 2 will have PHEVs that offer more than 100 km of all-electric range. We still don’t know what either car will look like from the outside, but Skoda revealed the pair’s cabin late last month. While both interiors are unique, they share some similarities, like their 10.0-inch digital instrument cluster and the free-standing 13.0 inch infotainment touchscreen. Each features a trio of smart dials, with screens, below the central HVAC vents. Skoda has also released some specs for both models. The Kodiaq will have a mild-hybrid 1.5-litre engine making 150 hp, which the company routes to the front wheels through a seven-speed, dual-clutch automatic gearbox. A larger 2.0-litre engine is available, making 204 hp with all-wheel drive. The plug-in hybrid will pair the 1.5-litre TSI engine with an electric motor for 204 hp. The Superb will have a similar powertrain lineup, including diesel engines. A 150 hp 1.5-litre TSI engine propelling the front wheels will power the entry-level model. It’ll have a larger 204 hp engine powering the front wheels and 265 hp with all-wheel drive. The plug-in hybrid will make 204 hp from its 1.5-litre TSI engine and electric motor. It won’t be long until Skoda reveals the new pair of cars. The company says it’ll show the new Superb and Kodiaq this fall. +++
+++ In an effort to combine all its most ambitious electric vehicle and driver assistance technology into one halo program, VOLKSWAGEN is working on what it calls ‘Project Trinity’. This advanced program of hardware and software development has been referenced publicly by the brand since 2021, and will eventually take the form of a flagship production model later this decade. Since the program’s announcement Project Trinity’s progress has been hit with delays, though, resulting in the production model’s initial 2026 deadline slipping to some time towards the end of the decade and a restructure of its management team. Yet Volkswagen remains confident in the ultimate value of the project. Trinity will act as a standard bearer for the firm’s future tech, if not necessarily for its future direction in terms of price. The company claims Project Trinity will deliver charging times that are “as fast as refuelling” a petrol car and says that the EV will set new standards for driving range. Volkswagen hasn’t yet confirmed a figure, but the brand is adamant that its new architecture will make Project Trinity the class leader thanks to a focus on reducing weight; a current weakness of EVs. VW will also significantly advance autonomous driving technology with Project Trinity. From launch, the EV will be offered with Level 2 driver assistance tech, not unlike many systems on the market today. However, this will only be a jumping-off point for the technology, as Trinity will feature all the necessary hardware for Level 4 automated driving, with functionality due to be unlocked as soon as regulations allow. That means the car can drive itself, (normally within a specific geo-fenced area), without the need for close human supervision or intervention. The system would assume so much control over the vehicle that the driver could direct their attention to other matters, such as online shopping or replying to emails. Legislation has been slow to respond to such technology, but Mercedes recently gained approval from the German government for a similar Level 3 system, paving the way for other manufacturers. VW has confirmed that Project Trinity will be built at its facility in Wolfsburg, which will soon be transformed into a new EV production centre, with €89 billion of investment planned over the next 5 years. Herbert Diess, former Volkswagen’s CEO, said: “Our business model is undergoing radical change. Volkswagen is being transformed from a traditional car manufacturer to a vertically integrated Group with strong brand groups and world-leading technology platforms. Wolfsburg, our Group’s long-established headquarters, will be central to the transformation, because we can only safeguard our strong position long term if Wolfsburg is successful. We will give the Wolfsburg site a new identity with our vision for 2030. Our goal is to create an internationally sustainable site with efficient Group steering, two electric manufacturing facilities, plus a state-of-the-art research and development center, and to establish and expand other future-oriented fields”. The factory will be built on the outskirts of Volkswagen’s current headquarters. The firm will then modernize its Wolfsburg facilities over the coming years to match the Project Trinity plant’s level of technology. Ralf Brandstätter, former CEO of the Volkswagen brand, has also described the car as “a highly efficient flat-seat concept with an iconic design; our innovation leader. Trinity is a sort of crystallisation point for our Accelerate strategy, a lighthouse project, our software dream car”. Accelerate refers to the brand’s pledge to make more than 50 percent of its sales in the US and China fully electric by 2030, while focusing more heavily on developing digital technology and software; both in its cars and its production methods. Volkswagen’s previously published teaser image gives little away about Project Trinity’s styling. However, it’s clear to see that it will be a low-slung model, while a separate image hints at a very wide track, suggesting massive interior space. Speaking on the prosecution of Project Trinity, Brandstätter added: “Wolfsburg is becoming a flagship for innovative, fully networked production processes. We will demonstrate that you can build innovative electric cars in a highly efficient and economical way not only in Berlin, but also on the shores of the Midland Canal”. Project Trinity will see the VW brand steer itself more towards the tech-led, software driven end of the market. It is likely that fewer variants of the new model will be produced relative to what is considered the norm today; indeed the hardware across the range is likely to be near-identical throughout. By 2030, the Group anticipates that one third of the revenues in the global mobility market will come from software-based services. So, the brand has set aside €30 billion (around £25.5 billion) for the digitalization of its services and sales. That figure also includes the cash to develop the firm’s autonomous technology. Specification changes will come through software changes, and it’ll be possible for many of the optional extras to be switched either on or off either via subscription services or through smartphone apps. This, according to Volkswagen, will help to simplify (and therefore cut costs of) the production process; an area that will become further streamlined thanks to a digitization of the brand’s Wolfsburg plant. “In the future, the individual configuration of the vehicle will no longer be determined by the hardware at the time of purchase”, says Brandstätter. “Instead, customers will be able to add functions on demand at any time via the digital ecosystem in the car”. Elsewhere at Volkswagen, the company has plans for a €2 billion investment in the brand’s Salzgitter facility, which will soon become the development, planning and control center for the Group’s entire EV battery production scheme. Volkswagen also recently signed three new partnerships with key EV battery raw material suppliers and research companies, which Salzgitter will also soon manage. +++
