+++ CHINA has given 9 companies the go-ahead to start testing Level 3 autonomous driving systems on public roads. The move comes roughly eight months after the country issued guidelines for the nationwide scheme and started accepting applications from firms wanting to test their self-driving technology stacks. The Chinese Ministry of Industry and Information Technology has confirmed that approval has been granted for Nio, BYD, Changan Auto, GAC, SAIC, BAIC BluePark, China FAW Group, SAIC Hongyan and Yutong Bus. These companies will be allowed to test autonomous vehicles on restricted roads, and drivers will be permitted to take their hands off the steering wheel. Level 3 semi-autonomous vehicles are not yet available in China but these tests will pave the way for such systems to be launched locally for individual buyers and fleet operators. At least 10 car manufacturers in China sell vehicles with level 2 systems, including Huawei and Xpeng. The program will be overseen by the Chinese Ministry of Industry and Information Technology, the Ministry of Transport, the Ministry of Housing and Urban-Rural Development, and the Ministry of Public Security. The new legislation also opens the door for Tesla to start offering its semi-autonomous driving systems in the country. In May, Elon Musk suggested the carmaker could launch a fleet of robot taxis in China with its Full Self-Driving technology before introducing the technology into privately owned cars. Chinese representatives were reportedly open to the idea. Before this happens, however, Tesla will need approval to collect and transfer the data required by its autonomous systems. The Tesla Model 3 and Model Y are now allowed into certain parts of China that were previously off-limits because of data security concerns. Tesla received the thumbs up for letting the 2 electric vehicles roam freely across the country after one of China’s leading automotive associations said they comply with data-security regulations. +++
+++ FIAT dropped the 500X in the United States after the 2023 model year, so I was a bit surprised after coming across a post promoting it. However, after doing a little digging, it seems that Fiat needs all the help it can get to clear out excess inventory. A quick search online reveals American dealers have 277 units listed as new and available. While a few of the older models actually appear to be used, Fiat still has months worth of supply. In the first quarter, Fiat found 113 buyers for the 500X. That equates to roughly 38 per month, which means the company is currently sitting on more than 7 months of supply. Doing the math, that should be enough inventory to last until 2025. +++
+++ FISKER continues to circle the drain and it appears their fire sale can’t reverse the tide. That’s becoming clear as the company has defaulted on a $3.456.000 loan. In a Form 8-K filing with the U.S. Securities and Exchange Commission, Fisker revealed they missed payments to CVI Investments. While this probably shouldn’t be too surprising, it appears the company defaulted almost immediately. The deal was made on May 10 and the filing says the company failed to “make the repayment required to be made for the week ended May 10”. That’s not good and CVI Investments has decided to exercise their rights to “immediately redeem 100% of the outstanding” balance as well as “any applicable interest, late charges, redemption premium and other amounts due”. This will undoubtedly put even more pressure on Fisker and could potentially be the straw that breaks the camel’s back. That remains to be seen, but the automaker originally said they would use the funds to finance expenses consistent with a budget approved by the investor. At the time, the company also mentioned there was a chance the amount could be increased to $7.5 million. That possibility is now all but dead as the investor doesn’t appear to want anything to do with Fisker anymore. Regardless, the loan was supposed to be due on June 24 and had a “rate per annum equal to the 3-month secured overnight financing rate plus 12%”. The news comes at a bad time for Fisker as inventory levels continue to shrink. Last month, the automaker announced the Ocean Sport was sold out in the United States, leaving them with just the Extreme and Ultra variants. Those models now start at $37,499 and $34,999 respectively, following massive price cuts in March. +++
+++ MG will unveil the new HS at the Goodwood Festival of Speed from 11-14 July. The announcement was made directly by Guy Pigounakis, MG sales director in the United Kingdom. According to the director, the new model will have a completely different design to the current HS, although it will continue to be offered with non-electrified petrol and plug-in hybrid powertrains. Guy Pigounakis has already predicted that the plug-in hybrid version will use a battery pack almost twice the size of the current 12.8 kWh battery pack to increase electric range to over 100 km. Although it was not specified, it seems inevitable that the new HS will also be equipped with new electric motors, for a total power that could exceed the current 258 hp. Prices are expected to remain competitive. The new HS will be part of MG’s display at the Festival of Speed, where the SAIC-owned brand will celebrate its 100th anniversary. In fact, MG was founded in the United Kingdom in 1924 by William Morris as Morris Garages. The HS is currently the Chinese brand’s second best-selling model in Europe after the ZS, with 19.889 units delivered to the end of April, according to data compiled by Dataforce. The HS is the 12th best-selling compact SUV in Europe in the first 4 months of the year and the 8th best-selling model in the United Kingdom, the latter being MG’s second biggest market after Italy. Overall, MG expects to increase sales to over 300.000 units in Europe in 2024, surpassing the 231.684 deliveries in 2023. +++
+++ Jaguar Land Rover is recalling RANGE ROVER models due to an issue with the clutch plates housed within the hybrid transmission. The company initially defined the recall as a “non-compliance recall” but has since updated it to a “voluntary safety recall”. It says that the clutch plates may have been manufactured with a flatness out of tolerance to the engineering specifications. This can trigger excessive heat build-up and degrade the material within the clutch pack. It may also cause transmission oil contaminant that blocks the hydraulic system, rendering the clutch pack inoperable. Owners of affected vehicles will not be alerted to the problem. Land Rover notes that reduced oil pressure can cause the transmission to shift into Neutral and trigger a loss of drive, increasing the risk of a crash. The recall impacts 2024 model year Range Rovers and Range Rover Sport models. Land Rover received its first field report of the issue on November 21 and continued to monitor it until April. In mid-April, a Product Safety and Compliance Committee investigation was opened and determined the rate of the issue represented an unreasonable safety risk. A decision to launch a safety recall was made on May 23. The company has received 13 claims and field reports in the U.S. related to the issue but is not aware of any accidents, injuries or fires. Dealers will be notified of the recall on June 13, while owners will be informed on or before July 26. Approved Jaguar Land Rover repairers will run a diagnostic test to determine if the clutch packs are performing as expected. Transmissions which fail the test will be replaced free of charge. +++
+++ In the UNITED KINGDOM , new car registrations rose for the 22nd month in a row in May, with a strong fleet market continuing to underpin growth as private sales dwindled. A total of 147.678 new cars hit the road in May, according to the Society of Motor Manufacturers and Traders (SMMT), which represents an increase of 1.7% year on year. The growth also means last month was the best May performance since 2021, but sales were still down 19.6% compared with pre-Covid 2019. The growth was primarily driven by a healthy fleet and business market. Fleet sales increased by 14% year on year, while sales to businesses rose by 9.5%. However, sales to private buyers dropped by 12.9% year on year. Petrol and diesel sales fell year on year by 16.7% and 2.1% respectively, while sales of plug-in hybrids were boosted by 31.5%. Registrations of battery-electric vehicles (BEVs) were positive, rising by 6.2% to claim a market share of 17.6%. This figure was supplemented by fleet sales, where BEV uptake increased by 10.7% year on year. Private BEV registrations fell by 2%, representing a drop of 98 registrations compared with May last year. The SMMT said EV sales in the UK are still “below the trajectory mandated on manufacturers by government in its Vehicle Emissions Trading Scheme, which demands 22% of new vehicles sold this year by each brand must be zero emission”. The organisation also said the industry required more support, calling for action. SMMT chief executive Mike Hawes said: “As Britain prepares for next month’s general election, the new car market continues to hold steady as large fleets sustain growth, offsetting weakened private retail demand. Consumers enjoy a plethora of new electric models and some very attractive offers, but manufacturers can’t sustain this scale of support on their own indefinitely. Their success so far should be a signpost for the next government that a faster and fairer transition requires carrots, not just sticks”. The UK’s best-selling car in May was the Kia Sportage, followed by the Ford Puma and Audi A3. The Puma continues to lead the pack as the UK’s best-selling car of the year so far, with the Sportage, Qashqai and A3 trailing just behind. +++
+++ The VOLVO S60 is a sexy Swede that largely flies under the radar. However, in the United States, the sedan is finally getting the attention it deserves. May sales skyrocketed 281.3% from last year to hit 1,365 units. This wasn’t just a fluke as year-to-date sales are up 255% to 7.781 units, which is a huge increase from the 2.192 units moved a year ago. The jump in sales meant the S60 was Volvo’s 4th bestselling vehicle in the United States last month. It finished behind the XC60, XC90 and XC40. It’s not immediately clear what caused the increase in sales, but the fact that the S60 won’t be built anymore is a plausible explanation. While S60 sales are through the roof, American consumers have pulled the plug on the C40. Volvo only sold 91 units in the United States last month and that’s an 89.1 % drop from a year ago, when they moved 832. Even worse, the company has only sold 491 C40s through the first 5 months of the year. Overall, Volvo sales fell 5.3% in the United States last month to 10,153 units. However, year-to-date sales are up 10.4% compared to 2023. The S60 represents the fall of another interesting model to SUV fever. If we don’t want to follow the market trend, it’s becoming increasingly difficult as the Swede has been another victim, as have the Ford Mondeo, Mazda6, Opel Insignia and Renault Talisman in Europe. Fortunately, D-segment lovers still have the Alfa Romeo Giulia, BMW 3-series, Mercedes-Benz C-Class, Peugeot 508, Skoda Superb or Volkswagen Passat. In addition, the new Audi A5, a replacement for the veteran Audi A4, will soon be available. To give you an idea of what we’re missing, the S60 was a 4.77-metre long model, with a very attractive design and a cabin that stood out for the quality of its materials. It was also a very pleasant choice for comfort, while safety was one of the most brilliant aspects. The manufacturer demonstrated great resistance in the Euro NCAP crash tests, with a 5-star result, not forgetting the various driving aids. In terms of its mechanical range, the S60 had an important peculiarity. Unlike its estate variant, the V60, the saloon never offered diesel engines, which was detrimental to its sales figures. If you want a Volvo S60, you should know that it is still available at certain dealers as only the brand’s stock remains. +++