+++ The CITROEN C3 AIRCROSS will become a 7-seat electric SUV as it enters its second generation. Brand CEO Thierry Koskas showed preview images of the new model at the end of the presentation of the new ë-C3. Koskas confirmed the new C3 Aircross will remain a B-segment SUV, adding that it will adopt a conventional 2-3-2 seating layout. It will use the new Smart Car platform that underpins the ë-C3, but stretched significantly to offer sufficient room for 7 occupants. For reference, the ë-C3 will be launched with a 44 kWh battery, which officially yields a range of 320 km between charges. A cheaper variant with a range of 200 km will go on sale in 2025, most likely utilising a smaller battery. As such, the new C3 Aircross is expected to arrive with a range of electric and internal-combustion powertrains. Visually, the new C3 Aircross will be a bolder proposition than the outgoing car, trading its soft curves for squarer, more rugged cues. It is expected to arrive as one of the cheapest 7-seaters on the market, rivalling the Dacia Jogger in petrol form. Citroën executives will reveal further details about the new C3 Aircross next year. It’s likely to arrive in 2025, 8 years after the current-generation model’s launch. +++
+++ FORD confirmed that it has temporarily cut a shift at its F-150 Lightning electric pickup plant in Detroit, possibly signaling demand is drying up for the highly rated truck. “We are adjusting the schedule at the Rouge Electric Vehicle Center because of multiple constraints, including the supply chain and working through processing and delivering vehicles held for quality checks after restarting production in August”, Ford said in a statement regarding the shift reduction. Ford said 700 jobs would be affected by the shift cut, and that the jobs impacted were not due to the ongoing UAW stand up strikes. Despite this statement, however, it appears there may be more to that story. The Wall Street Journal was first to report last Friday that Ford was considering cutting a shift at its Rouge electric vehicle plant, where the automaker builds the Lightning, citing a memo from an UAW official concerned about demand. “It doesn’t take a rocket scientist to figure out that our sales for the Lightning have tanked”, the memo reportedly also said. This would also explain the automaker’s recent decision to introduce big price cuts for the F-150 Lightning, with Ford offering $7.500 in incentives for the Lariat and Platinum trims, which combined with the federal tax cut would potentially be a whopping $15.000 off the sticker price. Prior to this, Ford had cut prices on some trims of the Lightning back in July. But before that, in March, Ford had boosted the price of the Lightning Pro work truck by more than $20.000, taking it to over $60.000. That trim has since eased back to a starting price of $49.995. “We think Ford’s announcement is emblematic of the difficulties traditional automakers have faced with ramping up EV production, but also reflects consumer demand for EVs that wasn’t what it once appeared to be in terms of the robust reservation counts for certain new models”, analyst Garrett Nelson said regarding the shift cut. “There’s been a growing mismatch between what automakers are trying to sell and what consumers want to buy”. Ford’s production shift cut follows reports that the automaker had recently canceled dealer stock orders for the Lightning in the past month. Dealer stock orders are those that dealers place to have inventory in stock for customers who are interested in purchasing off the lot, as opposed to special order. At the time, Ford said in a statement that this wasn’t due to any particular issue, only that it had “canceled some dealer stock orders not submitted as pre-sold for model year 2023 as part of our preparations to changeover to model year 2024. No customer orders have been canceled by Ford”. The confluence of shift cuts, pricing incentives and canceling of dealer stock point to possible deterioration in F-150 Lightning demand, just as the automaker has said it will ramp up production of its traditional gas and hybrid F-150 models. Ford reported in Q3 that Lightning sales fell 46% year over year to 3.503 vehicles sold. “Ford and other automakers are starting to reconsider their EV growth strategies, shifting away from pure battery EVs more towards plug-in hybrids and even ICEs [internal combustion engines”, Nelson said. +++
+++ FULLY SELF-DRIVING CARS cars that can operate anywhere without human intervention are “decades away” from being a reality, according to the CEO of an autonomous vehicle company. Oxa boss Gavin Jackson said that the industry is “a long way away” from producing cars that can match or surpass human drivers, and said that such vehicles would need to become “local experts” before they could be trusted to drive on public roads. “In our space, the ultimate goal is to have software that has the experience, the knowledge, and the expertise to drive everywhere”, he said. “When it comes to generalized AI that can do that, we’re so far away from that. We are decades away from that being possible today”, he added. Oxa, a startup that sells autonomous driving software, develops autonomous vehicles that travel on fixed routes, with self-driving features monitored by human safety officers. The company is focusing on urban public transport and commercial vehicles, rather than passenger cars. The company has trialed its technology in refineries, solar farms, and mines, and has announced partnerships with autonomous transport companies eVerseum and Beep to integrate Oxa self-driving software into passenger shuttles in Europe and the United States. Jackson said that the main barrier to fully autonomous vehicles that can drive themselves under any conditions was the sheer amount of data that would need to be collected to train the vehicle AI to react to every possible situation that might occur while driving. He pointed to generative AI as a potential solution, saying that Oxa was using the technology to simulate a range of different scenarios in order to uncover potential issues. “There’s only so much data that you can collect from physically driving around and when you’re trying to collect data in designated self-driving routes, you’re really waiting for weird or dangerous things to happen”, Jackson said. “And the amount of data that you collect is nowhere near good enough, if you will, to cater for the near infinite things that could happen when you’re out driving, so you need a different way to test your software before it ever hits the road”. The debate around “self-driving” vehicles has become increasingly heated in recent years. Robot taxi company Cruise received approval to operate 24/7 in San Francisco earlier this year, but agreed to cut its fleet of driverless taxis by half following several incidents of unmanned vehicles getting involved in accidents. Cruises’ robot taxis do not require a human driver and are capable of operating on their own, but only in certain circumstances and geographical areas. They are still some way away from the holy grail of self-driving cars; a vehicle that can operate anywhere and under any circumstance without any human interference. Elon Musk, meanwhile, has faced controversy over Tesla’s ‘Full Self-Driving’ feature, which was launched in 2016 and allows users to automatically change lanes, recognize traffic lights and park, with critics arguing that it is deceptively named and suggesting that it poses a safety risk. The company has always stressed that the feature requires a licensed driver to monitor it at all times. Bloomberg reported in January that the SEC is investigating Elon Musk over comments made about the related Autopilot feature, including whether the Tesla CEO made inappropriate statements about the technology. Gavin Jackson told that Level 5 autonomous vehicles that can operate on public roads without human interference are, for the moment, still a pipe dream. He compared the challenges faced by self-driving software to passing ‘The Knowledge’, the famously difficult exam taken by London taxi drivers. “You have to amass enough experience to know where you’re going, know the specific driving behaviors, all the shortcuts, know how to get from A to B in an efficient way. And that’s what self-driving software has to do” Jackson said. “It needs to become a local expert wherever it is operating, and over time it will eventually amass enough experience across all of those nuanced places to apply that to more general situations, but that’s a long way away”, he said. +++
+++ KIA invited global dealers to Korea for the first time in five years to share business strategies, including the expansion of its electric vehicle (EV) business, the carmaker said. Kia said it hosted 390 people from 140 countries, including regional headquarters, subsidiaries in each country and chiefs of dealers to the Global Distributors Convention, which ran for 4 days. The event is the first to be held since the outbreak of the Covid-19 pandemic and the company’s name change from Kia Motors to Kia and corporate identity refresh in 2021, the company said. On the first day of the convention, Kia CEO Song Ho-sung told participants, “we need to transform our entire business structure to achieve sustainable growth”. “First, we need to expand our business scope. Second, we need to become a company that takes on environmental and social responsibility and third, we need to become a customer-centric brand”, the CEO said. In particular, Song emphasized the company will become a company that provides optimized mobility solutions such as purpose-based vehicles, ride-sharing cars and ride-hailing cars. Executives shared with dealership owners the company’s mid- to long-term EV acceleration strategy, which aims to sell 4.3 million vehicles globally by 2030, including 1.6 million EVs. To that end, Kia plans to convert its Autoland Gwangmyeong plant 2 to an EV-only production facility and increase the number of EV models produced at its Autoland Hwaseong plant for international markets. In addition, the company also shared detailed business strategies such as strengthening the global supply chain, software-defined vehicles (SDVs) and design philosophy. Participants joined Kia’s EV Day event that introduced new EV models such as the EV4 and the EV5. In terms of becoming a more eco-friendly corporation, Kia told participants that it will strengthen its EV lineup and implement various campaigns to achieve carbon neutrality by 2045. The company added that it will proactively respond to climate change through the Ocean Cleanup project to collect and recycle ocean-bound plastics and the Blue Carbon project to restore domestic tidal flats in collaboration with the Ministry of Oceans and Fisheries. +++
+++ For 2024, NISSAN is applying yet another round of light but noticeable improvements to its X-Trail. They’re focused mainly on some fresh styling as well as some significant changes to the infotainment. The exterior changes comprise new front and rear fascias. The grille has been changed up front to look closer to those found on the Ariya. The rear taillights have a new design and the rear bumper has been simplified. The top trim also now gets gloss black exterior cladding instead of unpainted plastic. The interior is mostly unchanged except on the higher trims. These all add a 12.3-inch infotainment screen (instead of the outgoing 9 inch display) with a new operating system that features Google Built-In. That enables Google apps such as Assistant and Maps natively in the infotainment without connecting a phone. But if you’re not interested in using those apps, Apple CarPlay and Android Auto remain standard equipment. The base trims still get the current infotainment system with an 8-inch display. Related to all of this is the move to USB-C ports only in all X-Trails. The rest of the Rogue stays the same. Standard safety features are generous with front and rear automatic braking, pedestrian detection for the front, blind-spot monitoring, rear-cross-traffic alert and lane-departure warning. The higher trimlevels get ProPilot Assist highway driving assistance, which features lane-centering as well as stop-and-go situations. It also takes advantage of navigation info to adjust speed for highway curves. The facelifted Nissan X-Trail goes on sale next year. +++
+++ Electric vehicle market share has grown considerably in recent times, but one automaker remains the top-seller, despite the gains made by several legacy companies. TESLA sells more EVs than anyone else in the United States, but recent sales data shows its dominance isn’t quite as dominant as it once was. Tesla’s market share in EV sales fell 7 points over the past year to 58 percent and 2 of its models saw their sales numbers plummet by significant amounts. Tesla Model S registrations dropped 51 percent between January and August of this year and registrations of the Model X fell by 18 percent. At the same time, Tesla saw Model 3 registrations grow by 19 percent, while the Model Y rose a stunning 95 percent. Though Model Y and Model 3 top the chart with more than 400.000 new registrations between them this year (and with Model S in 8th place in the rankings), they face a growing multitude of competitors that together are chipping away at market share. The reasonably priced Chevrolet Bolt Utility is in third place and the rest of the list is rounded out by the Volkswagen ID.4, Ford Mustang Mach-E, Hyundai Ioniq 5, Chevrolet Bolt Regular, BMW i4 and Rivian R1S. The Model 3 recently got a refresh in China and other markets, and Tesla has repeatedly cut prices for the car and its SUV counterpart, the Model Y. Those are likely significant factors in both vehicles’ growth this year, while the Model S and X remain far more expensive, and ineligible for federal tax credits as a result. Tesla doesn’t have a public relations office and doesn’t “do” traditional marketing like every other automaker, leading some to ask if a new approach is in order. Analysts have questioned whether price cuts are the right tactic, with many suggesting the company focus its dollars on marketing and outreach instead of discounts. “Customers have become desensitized to Tesla price cuts”, said Gary Black, The Future Fund’s managing partner. He argued that the wave of early adopters is over and said that Tesla needs to focus on education and awareness efforts with mainstream car buyers. The automaker has one of the most robust charging networks, and its vehicles’ tech and range are often better than the competition, so the argument that the product should stand on its own while the company focuses on awareness is a valid one. +++
+++ The TOYOTA CELICA was a staple of the Japanese sports car movement that started as far back as the 1970s and continued until the early aughts. The Celica started as a cheap, fun sports coupe but its success in rally racing is what made the Celica into a true icon. Unfortunately, as the economy changed and consumer’s tastes shifted, Toyota killed off the Celica in 2005. Enthusiasts have wanted the Celica to make a return since the day after it was killed off but there was no official movement on Toyota’s part to make that happen. Though within the last decade we’ve seen the resurgence of Japanese sports car excellence like the Honda NSX, Nissan 400Z and the Toyota GR Supra. We’ve also seen the birth of new badges such as the Toyota GR 86. If there were ever a time to bring back the Celica it would be now, but hopes aren’t exactly high that it could actually happen. However, the chairman of Toyota, Aiko Toyoda (also known as Morizo), may have given us a reason to believe again. Toyota Times (Toyota’s internal news outlet) recently sat down with Toyoda at Rally Hokkaido and asked him about the possibility of a new Celica in the future. “You’ll have to ask Toyota about that”, said Toyoda. “I’m not on the executive side”. The interviewer pushed a bit suggesting that considering Toyoda’s position he could put in a ‘request’. “Well, I have, but I don’t know what name it will come out under”, responded Toyoda. A formal request for a Celica put in by the chairman of the company himself is certain to be granted, right? Well, not exactly. According to Toyoda, thanks to “diversification” internally at Toyota executives are free to agree or disagree with cars that he may want to produce. According to him, that’s how the stylish new Prius came to be. “Without people like that, the Prius wouldn’t be what it is. I won on the Crown, but the Prius was claimed by people who didn’t want to side with me”. Getting back to the Celica, Toyoda said, “I’m not just saying this because we’re at a rally event, but Juha Kankkunen is Mr. Celica. He was our champion 4 times in the Celica. Now you can all have a think about why I’m using Kankkunen so much. See if you can guess!” According to Toyota Times, Toyoda delivered those last words looking directly into the camera. So, the chairman of Toyota has officially put in a request for a new Celica, but what are the chances of it actually happening? The facts bring us crashing down to reality. While he confirmed that he put in the request, Toyoda himself admitted that things don’t always go his way. Furthermore, he went on to confirm that even if they granted his request, the vehicle in question may not even be called a “Celica”, which would be a bit of a shame. Finally, the Celica was successful because it was a fun, affordable sports car. The thing is, the GR 86 exists and it kind of fills that void already. Would consumers spend $25k for a front-wheel drive Toyota sports car when they can spend a bit more for a rear-wheel drive GT 86? Probably not. Toyota could elect to bring back the Celica’s ultimate form, the GT-Four instead but then you’re stepping on the GR Corolla’s toes. Even if you look past all of that, by the time a Celica would be ready for market, it might just come back as an EV. We’re not so sure that’s what the hardcore Celica fans would want. All things considered, the chances of a Celica resurgence aren’t looking good but as long as Toyoda wants it to happen, we’re still going to hold on to a shred of hope. +++
+++ General Motors and Ford have laid out ambitious plans to spend billions developing new electric vehicles while returning capital to investors, all funded by robust profits from combustion pick-up trucks and SUVs. The mounting costs of the UNITED AUTO WORKERS strikes, and the eventual rich contract settlements, are putting those plans at risk, analysts said. “Reduction in capital spending, delayed EV targets, greater sharing of costs and other changes to the corporate ‘portfolio’ could be on the horizon”, Morgan Stanley analyst Adam Jonas told clients in an October 11 note. General Motors will report third-quarter results on October 24, with Ford following on October 26. GM has already telegraphed a $200 million hit to third quarter profits from strike-related costs. The strikes have cost GM and Ford more than $500 million, JP Morgan analyst Ryan Brinkman estimated in a note Monday. Ford is now losing $44 million a day, while GM is losing $21 million a day, Brinkman estimated. Ford was hit hard October 11 when UAW president Shawn Fain ordered a walkout from Ford’s Kentucky Truck assembly plant, its most profitable single operation globally. Kentucky Truck generates $25 billion in revenue per year (or $48.000 per minute, as Fain put it in a video address Friday). After a senior Ford executive said the automaker had reached the limit of what it could spend on a new union contract, Fain replied: “Go get the big checkbook. The one Ford uses when it wants to spend millions on company executives or Wall Street giveaways”. Ford spent $3.8 billion on dividends through the first half of this year, according to its most recent financial report. The company told investors in May it planned to distribute 40% to 50% of free cash flow to investors each year via dividends and share buybacks. Fain points to a 1.500% increase in the money spent on share buybacks by the Detroit Three over the past 4 years to argue the automakers can afford substantial UAW wage increases. In August 2022, GM’s board increased funding for share buybacks to $5 billion from $3.3 billion previously. The company reported spending $869 million to buy back shares during the first 6 months of 2023 and paid out $250 million in stock dividends during that time. GM and Ford have both already scaled back planned investments in EV and battery plants. In July, GM trimmed its planned spending this year on electric vehicles and battery plants to between $11 billion and $12 billion. Previously, the company had said it could spend up to $13 billion this year on EV and battery plant development. The company also raised its cost-cutting target through next year by $1 billion. Ford earlier this month hit the brakes on a planned $3.5 billion battery plant in Marshall, Michigan. Farley warned more cuts to Ford’s future product investments could come if there is a “bad deal” with the UAW. GM and Ford shares have fallen sharply since July as the standoff with the UAW has intensified. GM shares traded near a 52-week low on Friday. Still, some investors are optimistic that dividends and share buybacks can continue. “At least in the short term, I don’t think we have significant concern around the dividend being suspended or share buybacks being limited”. said Tim Piechowski, portfolio manager with ACR Alpine Capital Research, which owns GM shares. Investments in electric vehicles should continue, he added, saying that his bigger concern was if the companies had to draw down cash if there is a full work stoppage. GM has set up a new, $6 billion credit line as insurance against an expanded UAW strike. +++
+++ VOLKSWAGEN GROUP ’s deliveries rose 7.4% in the third quarter as strong demand in Europe and North America offset a decline in top market China, the German carmaker said on Friday. The Volkswagen group delivered 2.34 million vehicles in total in July-September. In China, deliveries fell 5.8% to 837.200, the company said, joining rival German carmakers in reporting a quarterly decline there. Mercedes-Benz and BMW earlier this week said their third-quarter sales in China fell, with the former hit by supply chain issues and model changes. China has been a tough market for automakers, which have battled weakening demand there as well as fierce price competition that Mercedes-Benz Chief executive Ola Källenius last month described as “Darwinistic”. Still, car sales in China continued a recovery in September, rising for the second consecutive month, benefiting from stronger demand and new models ahead of key holidays. Volkswagen recorded a 40.5% increase in deliveries of all-electric vehicles to 209.900 in the third quarter, accounting for 9% of group deliveries. “Despite the current general reluctance in the European market to buy battery-powered vehicles, we gained market share and remained market leader in this segment”, said Hildegard Wortmann, a member of Volkswagen’s extended executive committee. “However, our order intake is below our ambitious targets due to the lower than expected overall market trend”. Lower-than-expected demand for electric cars has caused Volkswagen to terminate its three-shift approach at its Zwickau plant in eastern Germany. +++