+++ BMW is one of the big automakers that believes a mixed powertrain strategy makes more sense than going all-in on EVs. But while it says it’s not planning on giving up building combustion engines any time soon, it concedes it has given up on growing ICE sales. “The tipping point for combustion engines was last year”, the automaker’s chief financial officer, Walter Mertl, told reporters. ”The current sales plateau for combustion cars will continue and then fall slightly”, he added, citing tougher incoming emissions regulations in the run-up to the mid-2030s combustion ban in China, California and Europe as a roadblock to potential ICE growth. Sales of electric BMWs, Minis and Rolls Royce cars jumped 74.4 percent last year, taking EVs’ share of the 2.56 million total BMW Group output to 15 percent. The automaker wants to grow that to 33 percent by 2026, when it starts rolling out its family of Neue Klasse electric cars, and 50 percent by the end of the decade. The first model to use the Neue Klasse platform will be an electric SUV that replaces the current iX3, but 5 more models, including a new 3-Series will follow, all based on the same architecture and borrowing styling cues from BMW’s recent concept cars. While EV sales growth is booming right now, Mertl said that it will be 2026 before the margins for the company’s combustion and electric cars begin to match up. But the lower costs of the Neue Klasse tech (which is targeting to cut battery expenditure in half and boost range-per-kWh by 25 percent) means the firm should be making as much money per car from its EV-heavy lineup by the end of the decade as it makes from its more combustion-led model range today. +++
+++ DETROIT ’s big auto show is returning to January after an ill-fated 2-year move to warmer September in an effort to create more outdoor experiences and draw more consumers. The next North American International Auto Show is now scheduled for January 10 through January 20 next year, organizers said. The move comes as auto shows worldwide struggle to attract crowds and persuade car companies to reveal new models. Auto companies have found they can show off new models with less-expensive virtual events that don’t have to compete with multiple other announcements at shows. Rod Alberts, the Detroit show’s executive director, said in a statement that after talking with numerous partners, officials believe returning to January makes sense. The show has taken place in September for the past two years, with few new model debuts and attendance faltering. The move to September was aimed at showing off new technology and models outdoors with more driving experiences, but that didn’t really materialize. Past shows in January, when there is less to do in Detroit, drew around 800.000 people. Officials never revealed attendance for the 2 September shows, but organizers said in 2022 they’d be happy with 500.000. “In a constantly changing global automotive landscape, this update reflects our efforts to continue to reimagine the Detroit auto show with keeping an eye on what matters most: getting people excited about cars”, Alberts said in a statement. +++
+++ It’s true that ELECTRIC VEHICLES sales growth slowed in 2023, but the segment still has momentum and that’s likely to continue into 2024. Looking back on 2023, it’s clear that the year was not an unqualified success for electric vehicles. However, with growing sales, growing market share and a positive outlook, there was a lot to celebrate for EV boosters, too. Now that we have the full picture for the year that ended, it’s clear that the widely reported slowdown in EV sales is real. Although sales were up 40 percent year-over-year in the fourth quarter of 2023, in 2022 they were up 52 percent as compared to a year earlier, although the 4th-quarter of 2021 was still affected by pandemic restrictions. Despite that, the quarter contributed to a full year sales tally of 1.2 million electric vehicles. That’s the best-ever sales performance for the segment, and means that the vehicle type accounted for 7.6 percent of the U.S. automotive market, which is another record. Ultimately, Cox Automotive sums it up like this: “The EV market in the U.S. is still growing, but not growing as fast”. However, the auto industry insight organization is still optimistic about the future of EVs, calling 2024 the “year of more”. “More new product, more incentives, more inventory, more leasing, more infrastructure: all the more will combine to push EV sales higher in the year ahead”, it writes. “The team forecasts EV share of the U.S. market in 2024 will reach 10 percent”. And there’s more good news for buyers. Cox Automotive reports that transaction prices between EVs and internal combustion engines are coming closer to parity, and it believes that equal pricing across the powertrain types may be possible in the coming years. Regrettably, electric vehicles still come with a hefty price tag. For now, the EV segment remains dominated by Tesla, which controlled 55 percent of the market last year. However, that’s down from 65 percent a year earlier, and with more EVs coming from Germany, that dominance will likely be chipped away further in 2024. Cox Automotive writes that EV momentum is real, and the segment will continue growing in 2024. However, it’s set to be another complicated year, as the analysts predict that it may also bring the first quarter-over-quarter sales decline of the last 3 years. +++
+++ LUCID shares hit a record low following the release of its quarterly production results. The automaker delivered fewer vehicles in the last quarter of 2023 compared to the same period in 2022. In a statement, Lucid reported producing a total of 2.391 vehicles in Q4, with 1.734 of them delivered to customers. This marked roughly a 10 percent decline in deliveries compared to the same period the previous year when 1.932 units were handed over to customers. Meanwhile, its production decreased by around 31 percent for the last quarter of the year, although Lucid had previously cautioned investors about this possibility. Throughout 2023, the automaker revised its production forecasts twice, starting from an initial 12.000, then reducing it to 10.000, and ultimately settling between 8.000 and 8.500. The EV company managed to meet the final target, producing a total of 8.428 vehicles in all in 2023. That was about 17 percent more vehicles than it managed to produce in 2022. Despite that, the company’s stock was down 6.3 percent. While these results are unfavorable for the automaker, they may not be the sole factor affecting its share value. Alongside reporting its Q4 figures, investors also discovered that inflation exceeded December forecasts. As a result of that, the expectation is that interest will be high for longer than expected, making cars more expensive. In Lucid’s case, that particularly bad news since it only sells a single premium electric sedan, demand for which is more sensitive to interest rates. In a note, Garrett Nelson, a senior equity analyst at CFRA Research, suggests that Lucid’s share prices may continue to decline from this point. “With Lucid shares hitting a new record low, we see little in the way of fundamental or technical support for the stock and expect additional lows to be set”, Nelson wrote. +++
+++ MAZDA plans to revive a division specializing in rotary engine development which was dissolved 6 years ago, Mazda president Masahiro Moro said at an auto show in Chiba. The automaker will promote the use of plug-in hybrid vehicles (PHEVs), which employ a rotary engine as a generator, Moro told reporters. It also plans to develop a rotary engine that uses hydrogen and other fuels, utilizing a prototype that was unveiled last year. Mazda intends to form a team in the development division comprising 30 engineers and others from February 1. “The rotary engine is expected to be an environmentally friendly engine”, he said. The rotary engine was Mazda’s signature technology, first mass-produced in 1967, but production ended in 2012 due to poor fuel economy, and the development division was dissolved in 2018. Since the rotary engine’s compact size, light weight and high power can be utilized in electric vehicles, the company attracted much attention last year when it revived the Iconic SP, a rotary engine-equipped PHEV. +++
+++ The NISSAN Ariya Nismo is a high-performance version of the Japanese marque’s flagship EV. Unveiled at the Tokyo Auto Show, the new model is based on the Ariya e-4ORCE version and will initially launch in Japan this spring. The most obvious changes made to the Ariya are visual in nature. They start at the front where Nissan has tweaked the front bumper and made it look a little more aggressive thanks to an extended splitter with a red accent. The rocker panels have also been tweaked and also include a red strip, as do the wing mirrors. Modifications made to the rear of the Ariya Nismo are perhaps even more significant than the front. For example, there is a more pronounced roof spoiler and a prominent lip spoiler on the tailgate. Nismo has also crafted a new gloss black bumper for the EV with a red accent. A distinctive set of 20-inch aluminum wheels have also been developed. 2 versions of the Ariya Nismo will be offered in Japan, although it remains uncertain if all global markets will receive both versions. The base Nismo B6 e-4ORCE pushes out 362 hp and 560 Nm through its 2 electric motors while powered by a 66 kWh battery pack. This version weighs 2.080 kg. Those seeking more performance can opt for the Nismo B9 e-4ORCE with a 91 kWh battery, 429 hp, 600 Nm and weighing between 2.210 kg and 2.220 kg depending on specification. Nissan has not yet released performance figures for the SUV. What it has said is that there is an exclusive Nismo driving mode that maximizes response and makes the Ariya sound like a Formula E race car. The carmaker also said it has better cornering abilities than lesser variants. A handful of changes have been made to the cabin of the Ariya Nismo. The most obvious is the fitment of Nismo-branded seats, red accents on the center console and dashboard, red contrast stitching, and a small Nismo logo on the dashboard. +++
+++ The PORSCHE Macan EV Will Debut On January 25. The Cayenne’s smaller brother is getting an all-new generation with a fully electric powertrain and a rather sporty chassis setup. With a new teaser on its official website, Porsche confirmed that the much anticipated Macan EV will premiere on January 25. The new generation of the popular SUV will ride on the new Premium Platform Electric (PPE) architecture, featuring a 100 kWh battery pack and up to 612 hp of electric power while promising to offer exceptional driving dynamics. Porsche has already published photos and videos of lightly camouflaged prototypes of the Macan EV, so we have a pretty good idea of what to expect. The latest teaser is focused on the taillights, which adopt a much slimmer full-width design, similar to the rest of the Porsche family. We also get a glimpse of the side vents on the rear bumper that contribute to a sportier stance alongside the pronounced shoulders, the inclined rear glass and the active rear spoiler. The interior of the Porsche Macan EV has been fully revealed as part of an earlier teaser, confirming what we already knew from our scoops. The triple-screen layout comprises a 12.6 inch digital instrument cluster, a 10.9 inch infotainment touchscreen and a passenger display, combined with a sophisticated augmented reality head-up display. The original Porsche Macan, which has been around since 2014 with 2 consecutive facelifts in 2019 and 2021, is known for its sporty character. This will be further accentuated in the new generation, taking advantage of the EV-native PPE architecture, a more sophisticated chassis setup, and more power than ever before. More specifically, the flagship version of the Macan EV will produce 612 hp and over 1.000 Nm of torque, significantly outperforming its ICE-powered predecessor. The battery has a capacity of 100 kWh (95 kWh usable), allowing over 500 km of driving range. At the same time, it will be compatible with up to 270 kW of fast charging, taking it from 10 to 80 percent charge in 22 minutes. As a refresher, the existing ICE-powered Macan which is Porsche’s best-seller, will remain on sale in North America at least until 2025-2026, offering an alternative to those who are not ready to jump into the EV world. However, the gas-guzzling model will be reportedly discontinued from Europe later this year, due to not complying with the stricter cybersecurity regulations. +++
+++ SEAT feels like the neglected child of the VW Group, but the company didn’t forget to celebrate the 40th anniversary of the Ibiza. The 2024 Seat Ibiza Anniversary Limited Edition will be available in the first quarter of 2024, featuring a few special touches and generous equipment. Visually, the model is distinguished by the exclusive Graphene Grey shade, the new 18-inch alloy wheels which are finished in Cosmo Gray and the “Anniversary Limited Edition” logo on the B-pillar. Interior upgrades are centered around a new pair of textile bucket seats, combined with dark aluminum matt accents and anniversary lettering on the side sills. The company didn’t mention any changes on the chassis or under the hood, meaning that the anniversary special will most likely be powered by the tried-and-tested 1.0 TSI 3-cylinder gasoline engine which makes up to 110 hp in its most potent form. Interior shots reveal that the pictured example is equipped with the DSG automatic, sending power to the front wheels. Seat didn’t say how many units of the Ibiza Anniversary Limited Edition are planned for European markets, with its detailed specs and pricing set to be announced shortly. Since its introduction back in 1984, Seat has sold more than 6 million units of the Ibiza, which is the most successful nameplate in the brand’s history. The original Ibiza, named after the island of Ibiza, was penned by Giugaro, with Karmann being responsible for the interior and Porsche undertaking the powertrain development. The current fifth generation of the Ibiza debuted in 2017 and received a subtle facelift in 2021. The MQB-based supermini is a sibling of the Volkswagen Polo and the Skoda Fabia, while it also shares its underpinnings with the Seat Arona. Seat is destined to become a mobility-focused brand within the VW Group, as the much more profitable Cupra stole the limelight (and all of the R&D funds) from the parent company. According to the latest reports, Seat won’t be launching any new models, meaning that the Ibiza, Arona, Leon, Ateca and Tarraco will be discontinued after the end of their current lifecycles. Despite the bad omens, Seat CEO, Wayne Griffiths, remains optimistic, describing the current Seat range as “the best in its history”. Griffiths added that the brand “is now stronger than ever”, citing a 24% increase in sales in 2023 (288.400 units) thanks to the ease of the semiconductor shortages. +++
+++ TOYOTA has no immediate plans to offer a small, cheap electric car due to the high cost of battery materials, making the prospect of an electric Aygo X unlikely. Rival brands including Volkswagen, Renault and Kia have each confirmed plans to offer compact, entry-level electric cars at around €27.500 in the next 2 years, but Toyota says its cheapest EV for the foreseeable future will be the production version of the new Urban Crossover concept, expected to cost around €35.000. Asked why Toyota has no plans to enter this space, or indeed the nascent €20.000 EV segment, the brand’s product development boss Andrea Carlucci said there is still a “premium attached to electric cars” and that there needs to be a “substantial shift in the cost of batteries” before a value electric supermini can be produced profitably at scale. “We cannot achieve that level at the moment”, he added. As a result, Carlucci said, the Urban Crossover will be the entry point into Toyota’s EV line-up for now, raising questions as to what will become of the Aygo X-sized electric supermini concept Toyota showed in 2021. Dubbed the ‘Small Crossover’, this squat, raised runaround has not been seen since it appeared as part of Akio Toyoda’s unveiling of 15 concept cars 2 years ago, while several other concepts from that group have heavily evolved and are due to hit showrooms imminently. Indeed, it is not 1 of the 5 new electric SUVs Toyota will launch between now and 2026. Carlucci clarified that a €27.500 Toyota EV is not an impossibility: “I didn’t say we don’t need an offer there. I’m just observing where the market is today. “I know there is a tendency to go lower-end, which is very obvious”, he said, but suggested that the technical compromises associated with more affordable electric cars would be a barrier to uptake: “If I look at accessible and affordable components on the market, it means that the offer for a battery-electric vehicle is limited, then we have to really look into the price range”. He said the narrative about electric cars “should move into honesty and exactly what the customer would take”. Toyota will therefore not immediately seek to offer an electric car in the vein of the Aygo X, “unless something changes dramatically in the marketplace, which means if you want to stay in the market you have to go there”. But, Carlucci said, Toyota will not shift its focus wholesale to the SUV market. “We have nameplates like Yaris, which for me are the signature of the brand in Europe, more than any other cars”, he said, hinting at plans to directly replace its big-selling hatchback with an EV in the future. +++