+++ FORD boss Jim Farley wants the industry to stop viewing hybrid vehicles as only an interim solution to be used until drivers are comfortable going fully electric. “We should stop talking about it as transitional technology”, Farley said of hybrids. Plug-in hybrids, which include a small battery that can be used for shorter distances, may not be relevant in a few years, Farley said. However, extended-range hybrids are an important technology for the industry’s future, he said. Presumably, he was referring to vehicles similar to the Ram 1500 Ramcharger, which has a rather large battery pack, but also a gas engine generator to provide electricity when the battery has drained. Hybrid vehicles have experienced a surge in demand over the past year, prompting automakers to scale back on their drive to go electric. Ford is aiming to quadruple hybrid sales over the next several years, executives have said. It has pulled back on some of its EV investments and pushed back production of EVs in Canada and the United States. Separately, the Ford chief said that EVs should not be subsidized, and that automakers should be pushing to profitably produce battery-powered models quickly. “We believe that we have to get to that fitness level as soon as possible”, Farley said. The Dearborn, Michigan company split its electric and software division from its gas-engine operations in 2022, a move that executives said would improve efficiency in both segments. The automaker separately reports results for the wings of its business following the restructuring. Ford has forecast a loss of $5 billion to $5.5 billion in its EV business this year after reporting a $4.7 billion loss in 2023. Farley and other automotive executives have said software and subscription services will be key profit drivers in the future. The Ford boss views autonomous driving technology as one of the largest growth opportunities for the automaker. Chinese competitors have been superior in their approach to developing software and services that attract customers, Farley said. “The China consumer experience digitally is far beyond the West”, he said. “You have to have great cost fitness and quality fitness to even have the right to compete. And that’s being defined not here in the U.S. It’s defined by China”, he added. With such fierce competition overseas, Farley does not believe all car makers will survive. “Pressure will be the greatest on the all-EV brands that do not have gas-engine offerings to buoy profits”, he said. +++
+++ A safety issue with the battery management system software that could trigger a high-voltage system shutdown has prompted MERCEDES to recall the EQE and EQS electric vehicles. The problem began in October 2023 when Mercedes investigated a report from a dealership in Denmark regarding a high-voltage battery warning message displayed on a new vehicle’s instrument panel before delivery. A similar report followed in November 2023 from the United States, alleging reduced drive power alongside a warning message. Mercedes’ initial investigation focused on a potential fault within the high-voltage battery’s management system. However, further analysis revealed that excessive diagnostic requests from other control units in the car could overload the battery management system’s memory. This overload triggered a system reset, which is a normal function according to design specifications. Further investigation between December 2023 and April 2024 aimed to identify the cause of these excessive diagnostic requests. While no initial software defects were found in the control units themselves, testing confirmed that a diagnostic data overflow could lead to reduced power output or, in rare instances, a complete loss of propulsion. By April 2024, Mercedes narrowed down the cause to specific control units installed in vehicles produced after January 2023. This finding prompted a re-examination of known field cases, all of which involved vehicles from this time frame. Ultimately, in May 2024, after reviewing production records, Mercedes determined a potential safety risk and initiated the recall. Unfortunately, drivers won’t receive any warning before this unexpected loss of power occurs due to the nature of the software glitch. The recall encompasses various versions of the EQE and EQS sedans and SUVs. Mercedes noted that the defect affects 100% of these vehicles. The company will begin notifying owners by mail before July 23. To address the issue, dealerships will update the battery management system software free of charge. +++
+++ For a component solely in place to increase safety, airbags sure do lead to a lot of safety issues at times. In this case, it’s possible that they could deploy inadvertently in the NISSAN X-TRAIL . Specifically, the problem lies in 2015 model year examples only. There are already received several warnings about the issue. The airbags in question here are the side curtain ones and they evidently go off at times as the result of someone shutting or slamming the door hard. The potential issue raises concerns about occupant safety. If someone is seated next to the airbag, its unexpected deployment could cause harm. Moreover, driving without a functioning airbag increases the risk of injury in the event of a crash. It’s possible that it leads to a full-scale recall of the affected X-Trail. Of course, it’s possible too that it doesn’t end up requiring a recall at all. That was the case in a large investigation regarding Tesla and its in-car gaming technology. In that situation, Tesla changed its software during the inquiry. Nissan doesn’t have that luxury. Airbag-related issues are one of the largest complaint areas for the X-Trail. Several indicate that the airbag light illuminates even when there’s a person in the front passenger seat. +++
+++ POLESTAR ’s stock recently plunged to an all-time low of 73 cents, putting its Nasdaq listing in jeopardy if it does not reverse its fortunes. The electric car manufacturer went public through a reverse merger with a special purpose acquisition company (SPAC) in 2022 and, at one stage, was valued at $21 billion. However, like many other EV companies listed on the Nasdaq or NYSE in recent years, its stock has performed poorly, losing roughly 95% of its value. The firm now has a market capitalization of just $1.65 billion. Polestar’s stock dipped below $1 for the first time on May 21, shortly after it revealed it was delaying the release of its 2023 annual report and its Q4 2023 report. Polestar says it’s delayed the release as it needs to finalize statements regarding accounting misstatements made in 2021 and 2022, which need to be rectified in the 2023 report. The company adds that these changes will decrease its net loss by less than 5% for 2021 and increase it by less than 5% for 2022. Due to the delayed release of the financial reports, Polestar received a deficiency notice from the Nasdaq, meaning it’s not in compliance with stock exchange regulations. It has 60 days from the date of the notice to submit a plan of compliance to the Nasdaq. If this plan is accepted, an additional 180 calendar days may be granted to regain compliance. Polestar’s deliveries through the first quarter slipped 53% from last year, and new registrations have fallen by 70%. Polestar North America boss Gregor Hembrough has blamed this on high interest rates and a move away from fleet sales. The carmaker is trying to reverse its fortunes. +++
+++ TESLA investors have endured a roller coaster ride of wins and losses over the last 4 years, but for some, it’s now time to get off and find another attraction. Certain big stockholders are selling their shares because they think there are no more big growth opportunities, a report says. The value of the Tesla’s stock ballooned to 14 times its original size in the 18 months leading up to November 2021, but institutional investors (who buy stock for funds and large entities) don’t forsee the same kind of thing happening again, and have watched as the value has more than halved since then, and dropped 30 percent this year alone. Many of Tesla’s stockholders have stuck with it through minor slumps over the years, and been rewarded as prices recovered, but with the firm now under intense pressure from Chinese automakers and the global EV market cooling, they’re starting to think that Tesla and its shares are overvalued. “I think the story is over, is the best way to say it”, investor Ross Gerber told, explaining that his Gerber Kawasaki Wealth & Investment Management had reduced its 500.000 Tesla share haul by around 40 percent by selling stock during the course of this year. Some investors aren’t happy with CEO Elon Musk’s tendency to become consumed by non-Tesla matters, while others, including Graham Tanaka, are concerned about the technical and regulatory obstacle that stand in the way of Tesla creating truly autonomous cars. Tanaka’s fund began buying Tesla stock at $2 in 2011, but has jettisoned all of his Tesla stock over the last 6 months. Data from investment tracker Morningstar revealed that of 18 mutual funds that had held Tesla stock since 2019, when it was still worth less than $20, only 5 had acquired more shares during the last quarter, while 10 had offloaded stock. But some investors remain bullish about Tesla’s potential, pointing to the robottaxi that the firm will reveal in August as one reason to hold on to, and buy more stock. +++
+++ Since the launch of the TOYOTA Gazoo Racing department, I’ve heard countless rumours about possible revivals of the MR2 and Celica nameplates, keeping sportscar fans on their toes. The latest report comes from Japan and it’s about the return of the Celica in ICE-powered form as a GR model using a new turbocharged 2.0-liter 4-cylinder powertrain in combination with Toyota’s GR-Four AWD system. Last year, Toyota chairman Akio Toyoda expressed his desire for a new Celica, closely followed by rumours about an EV sportscar sharing its underpinnings with the Lexus LF-ZC Concept. The latest report takes a different and more exciting direction, suggesting that the Celica might return with a good old-fashioned gasoline powertrain. In a joint statement with Subaru and Mazda about future combustion engines, Toyota confirmed it is working on new 1.5-liter and 2.0-liter 4-cylinder engines prone to electrification and compatible with alternative fuels. The announcement of the “multi-pathway” approach and an earlier photo of a turbo 2.0-liter powertrain from the 2024 Tokyo Auto Salon fuelled the rumours about its possible placement in a new Toyota Celica. A report from Japan’s Best Car claims that development for the new high-performance engine started several years ago and has already been completed. While Toyota hasn’t given away any information about the specs, the publication speculates a power output close to the 406 hp territory. The mill could be mated to Toyota’s rally-inspired GR-Four all-wheel-drive system from the GR Yaris and GR Corolla hot hatchbacks. This setup sounds like a fitting revival of the Celica GT-Four while serving as a homage to the WRC success of the model. However, to distinguish it from the rest of the Toyota GR lineup, the new Celica could also gain a bit of luxury inside the cabin. At this moment, there is no information about the styling of the model, but chances are it would retain the low-slung coupe silhouette of the previous generations. According to unconfirmed information from Japan, the new interpretation of the Celica might be unveiled as early as next January, at the 2025 Tokyo Auto Salon. Toyota sold 7 generations of the Celica between 1970 and 2006 when the model was discontinued without a direct successor. Later on, the Toyota GT86 and GR 86 filled up the spot of an affordable sportscar in Toyota’s lineup with a similar 2-door coupe body. However, Celica fans never stopped wanting a new generation Celica and Toyota kept them busy with trademark filings. Besides the Celica, I’ve heard rumours about a new mid-engined MR2 roadster, a Starlet hot hatch and a smaller S-FR sportscar. The latest information suggests that these might use smaller turbocharged 3-cylinder engines in 1.3-liter and 1.6-liter displacements, closely related to the one used in the GR Yaris and GR Corolla. +++
+++ VOLKSWAGEN is about to reveal the facelifted Golf R, shortly after the launch of the track-focused GTI Clubsport, but fans of the series will be happy to learn that another hot hatch is under development. The company is working on an even more capable VW Golf R Clubsport, although the project has yet to receive the green light for production. The Golf R has always been Volkswagen’s flagship hot hatch, adding extra power and AWD capability over the FWD-only GTI models. On the other hand, the GTI Clubsport is the most powerful GTI, with an upgraded chassis and a slightly more aggressive bodykit. Blend those elements together and you have what could be described as Volkswagen’s wildest production hot hatch yet. Interestingly, the VW Golf R Clubsport is not just a rumour, as its existence (at least in an early development stage) has been officially confirmed. During an interview, global Volkswagen spokesperson, Martin Hube, said: “There’s another interesting car we are working on at the moment. They are thinking about and working on a Clubsport version of the Golf R”. Hube said that while the model won’t be a “track tool” due to the added weight of the AWD system, it could be a “weapon” on the road. Upgrades over the standard Golf R could include a revised suspension setup, reduced weight, and increased power. The turbo 2.0-liter 4-cylinder engine currently offers 320 hp in the Golf R (R Performance: 333 hp). While an even hotter Golf sounds undoubtedly cool, the final decision is in the hands of Volkswagen’s management board. The company’s spokesperson said that he really hopes they can convince the board members to greenlight the project, without revealing a timeline. I expect to learn more about the fate of the VW Golf R Clubsport in the coming months. +++