+++ The next BMW M3 is going electric. When the next generation of BMW’s best-selling high-performance sports car arrives towards the back end of the decade, both EV and hybrid-assisted combustion versions will be available. But don’t expect the hybrid to be a plug-in like the M5. No, BMW’s sticking to its guns with a less cumbersome, lighter approach. BMW’s M division has already confirmed that the combustion-powered replacement for today’s M3 will retain straight-6 power, and now Dirk Häcker, head of development at BMW’s high performance division told that the next M3’s heart will be a 48 volt mild hybrid powertrain and not a PHEV. The M3’s most obvious rival, the Mercedes-AMG C6 3 S, features a heavily electrified 4-cylinder engine to help boost its power output to 680 hp. But the solution adds a huge amount of weight, as it does on the new M5. Unlike the M5, however, which can do at least 67 km on electric power, the C 63 has a range of just 13 km. Speaking at the launch of the M5 in Munich, Häcker, a BMW M veteran, and reporting to CEO Frank van Meel, said there was no point in adding the extra weight of a PHEV system unless you were going to get the benefit of a usable electric range, which has practical benefits as well as massive tax ones in select markets. But since BMW will also sell an EV version of the M3, it can afford to keep the combustion version lighter and purer. Both models will ride on the same Neue Klasse platform that debuts next year on the new iX3 and will then be used for the new 3-Series, scheduled for launch in 2026. The M3 duo likely won’t arrive on the market until later, the electric version debuting first, in 2027, and the ICE car following. The addition of mild-hybrid tech will cut emissions slightly without adding too much weight and will provide a small boost to help fill the gap between a driver pressing his right foot and the turbos walking up; assuming BMW hasn’t adopted C63-style electric turbochargers. The small electric motor inside the transmission of the current mild hybrid M340i only makes 11 hp, but generates a solid 200 Nm of torque. Häcker wouldn’t be drawn on exactly how much power the next ICE car will make, but our guess is that it’ll be north of 600 hp. The current M3 Competition launched in 2021 with 510 hp, but a tweaked version of the same engine pumps out 550 hp in the M3 CS and M4 CSL. Whatever BMW M ends up extracting from the ICE M3’s inline six, it will still be far less powerful than the EV, though that will of course be much heavier. M has been spied testing a current i4 fitted with wide arches and converted to run a quad motor drivetrain capable of producing over 1.000 hp. However, the electric M3 might not deliver that much grunt, at least not in its base specification. Although BMW has trademarked the iM3 name, CEO van Meel said last November that the electric M3 would continue to use the same badge as the combustion car. Häcker didn’t say at the M5 launch which M3 he thought would be more popular, but it sounds like BMW is betting on the EV. The company’s best-selling M car is the i4 M50 and M predicts EVs will take 80 percent of sales by the decade’s end, with most of the remaining deliveries accounted for by combustion cars and only a tiny number being PHEVs. +++
+++ The FIAT 500E costs too much and is therefore not selling. This is shown by the figures and the consequent halt in production at the Stellantis plant in Mirafiori, which in Italy has become a subject of public debate between protests from trade unions and bipartisan criticism from politicians. The issue was also raised at the Paris Motor Show by Carlos Tavares who pressed by journalists took the opportunity to explain the strategy for relaunching the Italian city car that is the symbol of Fiat worldwide. As announced last May, the 500e will undergo its first reverse transition, from electric to hybrid. This decision, which was not included in the Group’s initial plans, has become unavoidable in order to save the model and its production, whose disappointing commercial results were determined, according to Tavares,”by the abrupt cancellation of incentives in Italy and Germany”. For Stellantis, what is certain is that building the current 500e at Mirafiori is not economically viable: “I don’t want to give too many figures that would go to the competition”, stressed Tavares,”but the cost of the platform for the Citroën C3 (and therefore in the Fiat Grande Panda) is half the cost of the 500e”. Hence the 2-fold intervention: the development of a hybrid variant (of the mild type similar to the Fiat Grande Panda, Jeep Avenger, etc.) and a technical evolution of the current 500e: “With our Italian engineers”, explains Tavares,”we have identified a very innovative engineering idea that will considerably reduce total production costs. With a new battery and a new battery management system, the cost will be significantly reduced and we will adjust the price accordingly in order to sell more”. How and how much is not yet known, but the director opened up about the combined impact on the Mirafiori plant taking into account the production of the 500 hybrid: between 80 and 100,000 more cars produced each year. It will be a race against time to stop the haemorrhage of sales, but also controversy, so much so that Tavares himself, at the House hearing, promised to bring forward the arrival of the car from 2026 to the end of 2025. The discussion on Fiat’s small car was an opportunity for Tavares to clarify that there are currently no plans for other so-called A-segment cars (city cars, to be precise): “To get around town, we use the Fiat Topolino, which I don’t call a car, but a mobility tool”. It’s a different story when it comes to the STLA Small platform: “This platform will be used by Fiat very, very soon, starting with the Panda, and it will make a major contribution to the profitability and accessibility of Fiat products”. It’s a different vision from that of the Renault group, whose number one Luca De Meo, again at the Paris Motor Show, defined city cars as the Columbus egg of the electric transition: “You don’t need to have a Nobel Prize in physics”, De Meo declared during a meeting with journalists, “to understand that to move an object that weighs 1 tonne, you need half the energy (whatever that may be) of an object that weighs 2 tonnes”. +++
+++ GENERAL MOTORS has released their third quarter results and investors were loving it as the company’s stock shot up nearly 10% to close at $53.73 per share. That’s nearly a 52-week high and the strong performance was fuelled by an assortment of positive developments. Jumping right into the numbers, the automaker reported third quarter revenues of $48.8 billion as well as a net income attributable to stockholders of $3.1 billion. This impressive performance pushed the company to raise their full year guidance as they’re now expecting diluted earnings per share in the range of $9.14 – $9.64, which is up from the previous estimate of $8.93 – $9.93. The company also expects their full year net income attributable to stockholders to be $10.4 billion – $11.1 billion, instead of $10.0 billion – $11.4 billion. In a letter to shareholders, CEO Mary Barra said they grew U.S. retail market share in the third quarter with “above-average pricing, well-managed inventories, and below-average incentives”. The executive also pointed to improved sales in China as well as continued progress on EV production and profitability targets. Speaking of the latter, she said “we are focused on optimizing our ICE margins and working to make our EVs profitable on an EBIT basis as quickly as possible”. Since most of the financial stuff is a snooze fest, let’s look at some interesting tidbits. Among the key points GM wanted to hammer home was leadership in full-size trucks and SUVs. They’re “#1 in full-size pickups” and are enjoying the best year-to-date total sales since 2007. GM’s position is pretty dominant as they have a 44% share of the full-size truck retail market. That pales in comparison to their commanding lead in full-size SUVs as the company controls 64% of the market. Their position is about to get even stronger as facelifted versions of the Chevrolet Tahoe / Suburban, GMC Yukon, and Cadillac Escalade will begin arriving at dealers in the fourth quarter. The company went on to credit a fresh product line-up that has higher profit margins than their predecessors. These vehicles include the Chevrolet Equinox and GMC Terrain as well as the larger Buick Enclave, Chevrolet Traverse, and GMC Acadia. Consumers have also embraced the value-focused Buick Envista and Chevrolet Trax. Barra went into more detail during an earnings call, where she said “We are on track to produce and wholesale about 200.000 EVs in North America this year and make our portfolio … profit positive this quarter”. She added the ICE-powered Equinox has been a hit as average transaction prices have shot up around $6.000 and the model is attracting younger consumers. The executive also mentioned things are heating up on the Hyundai front as the 2 companies are making “good progress” on specific areas of cooperation. She went onto say they’re “nearing the completion of our first definitive agreement and we expect to have something to share soon”. +++
+++ The 4xe edition of the new JEEP Avenger is supposed to offer the most off-road capability in the baby SUV range, so it makes sense that the 4×4 maker would team up with outdoor clothing brand The North Face to create a special edition all about adventure and exploration. The slightly unimaginatively named Jeep Avenger 4xe The North Face Edition will be unveiled on Friday 25 October, after more than two years of work on the project between the 2 brands. Jeep has released a very short teaser video for The North Face Edition, but it only reveals the car will sport dark grey paint contrasted by orange towing eyes on the front bumper, and some other accents in the same hue. Exactly what other unique elements the limited edition will have isn’t clear yet, but Jeep says: “This partnership showcases innovative design and advanced materials, reflecting the values of both brands and a shared commitment to exploration, nature, freedom, and sustainability”. Jeep will build 4.806 examples of the Avenger 4xe The North Face Edition. And while that may seem like a random number, it’s a reference to the height in metres of Mont Blanc: the highest mountain in the Alps and Western Europe. The 4xe is the first version of the Jeep Avenger to offer all-wheel drive, thanks to a new mild-hybrid powertrain that uses a 136 hp 1.2-litre petrol engine and two electric motors (29 hp each; 1 per axle). Compared with other versions of the Avenger, the 4xe also gets a multi-link rear axle set-up that allows for extra suspension articulation, a 10 mm increase in ride height, and more ‘Selec-Terrain’ driver modes to suit various conditions, including Sand & Mud and Snow, and new front and rear bumpers. +++
+++ MERCEDES has opened a new plant capable of reclaiming 96% of the raw materials used in its electric car batteries. The new facility in Küppenheim, southern Germany, will recover materials such as lithium, cobalt and nickel from existing electric car batteries so that they can be used in the production of brand-new cells. Mercedes’ process mechanically separates the aluminium, copper, iron and plastics present in each battery, before using an aqeuous solution (hydrometallurgy) to recover the rare-earth metals from the remaining ‘black mass’ of chemicals from the electrodes. The mass is dissolved into a liquid solution and filtered to separate the graphite, iron and aluminium, before it is neutralised using ammonia and hydrogen peroxide. Then it is treated with sulphuric acid, ammonia and an organic solvent. This yields sulphates of copper, cobalt, manganese, nickel and lithium. The cobalt and nickel are crystallised before being recovered. The plant will yield 2500 tonnes of recycled material, enough for 50,000 battery modules, annually. It also uses less energy than traditional pyrometallurgical processes (such as smelting), helping the Küppenheim plant to operate on a carbon-neutral basis. To that end, will be run solely using renewable electricity, with the factory’s roof packing a solar panel array that’s capable of supplying up to 350 kW. “We are now sustainably closing the raw materials loop in Kuppenheim”, said Jörg Burzer, Mercedes board member for production, quality and supply chain management. “The innovative technology enables us to recover valuable raw materials from the battery with the highest possible degree of purity. This turns today’s batteries into tomorrow’s sustainable mine for raw materials”. Speaking at the opening ceremony for the plant, German chancellor Olaf Scholz added: “The whole world is talking about de-risking and material security; what better approach than to reuse materials?” The Kuppenheim plant is backed by battery recycling company Primobius as well as Germany’s Federal Ministry for Economic Affairs and Climate Action. +++
+++ STELLANTIS is looking to cut production of some of its internal combustion-powered models to comply with EU emissions targets. This comes after chief executive Carlos Tavares recently revealed the firm opposes any delay in changes to the rules and says it will comply with them and won’t need to pay fines to do so. Newly-appointed European chief operating officer Jean-Philippe Imparato has revealed that Stellantis must double its EV share next year to 24% of total vehicles if it wants to meet 2025 targets. The other option is to reduce production of ICE models if demand for their EVs doesn’t increase. Updated EU rules come into effect on January 1 and will set an overall fleet CO2 emissions target of 95 grams per kilometer, a fall from the 106.6 g/km rule enforced since 2023. If an automaker misses the target, they will face fines of €95 per excess gram per vehicle. Imparato told that production cuts for the firm’s ICE models could start as early as November 1, confirming that his “first task is to align production for vehicles sold in the first quarter of 2025”, by the first week of November. According to Imparato, Stellantis has several ways it can attempt to boost EV sales. For example, it will increase dealer incentives on EVs, providing rewards across the entire distribution chain, including zone managers and salespeople. The carmaking giant may also look to increase the prices of its ICE models “on a flexible basis, by model, brand, and market,” in an attempt to encourage shoppers to consider an EV. There’s more Stellantis can do to help dealers. Many dealers have recently returned EVs from lease agreements in 2021 and 2022, and Imparato says the brand can help dealers with their residuals. Additionally, the executive says Stellantis can look to leverage the long-term value of EVs and effectively sell an electric model 3 times: once through an initial lease and then two more leases as a used vehicle. Leapmotor should also help Stellantis meet emissions targets. The carmaker purchased a 51% controlling stake in the Chinese brand’s international arm, and its sales will count in the group’s overall emissions figures. +++
+++ You can always look at the glass half full or half empty. In the case of the SUZUKI JIMNY , it’s not the fact that it’s no longer on sale, but the fact that we’re looking forward to the new model, which will arrive later this decade. If Suzuki’s internal plans have not changed, it will be an electric SUV and, according to the image provided by the brand, it should retain the rectangular, vintage aesthetic that has been so popular with customers around the world. The car will gain centimetres in width and more importantly it will be slightly closer to the ground, so it gets a sportier ‘stance’. It even has a 5-door body for added versatility. What’s more, I’m convinced that the new Jimny will be an even better all-rounder than its predecessor. Firstly, because it will have more power and better performance, and secondly, because the electric motors (there will be at least 2 for all-wheel drive) deliver maximum torque instantaneously, which is a great way to get the best out of low-grip terrain. Logic also dictates that it should still have a chassis with beams and cross-members, 2 rigid axles and hill descent control. Incidentally, this system will recharge the battery on the move. Speaking of the battery, the range shouldn’t go beyond 400 km, like an electric city SUV today, although with improvements in these cars advancing so fast, nothing can be ruled out. The fact is that the car will gain weight for this component, but it should not shoot up because it is not suitable for ‘off-road’. As for the price, I expect Suzuki to market it at the lowest possible price to become the cheapest SUV on the market again. +++
+++ The new TESLA MODEL Y (the one from Project Juniper, to be clear) will start production on 22 October. According to a Chinese blogger, the first examples of the restyled electric SUV will be produced at the Gigafactory in Shanghai. However, there is a knot to untie. Tesla said earlier this year that no Model Y update would arrive in 2024. So what? There are 2 scenarios. The first scenario is that the restyled Model Y does not actually arrive until 2025. Production could only begin on a trial basis, with deliveries starting next year. But the changes made are not so substantial. However, according to the blogger (his name is Fat Tiger Shaun), they will initially work at a rate of only 12 vehicles per day with the explicit request that the team dedicated to the new model maintain the utmost secrecy about the work done in the factory. However, there are also those who say that the Model Y Juniper is indeed close to its debut. Those who think so claim that Tesla said that the restyling would arrive only in 2025 to keep sales of the current Model Y high. Otherwise, consumers might chose to postpone their purchase knowing that an updated model would arrive in a few months. Also considering the complicated period, it is better not to risk losing orders. Cutting to the chase, what should we expect from the new Model Y? Aesthetically, the car will marry the styling of the Model 3, with redesigned headlights, both front and rear, and a different, sleeker front bumper. The new Model Y is also expected to receive updates in the cabin, with new upholstery and more overall attention to fit and finish. The fact that Tesla has started production from Shanghai suggests that the new Model Y will be sold first in China and then in Europe. Regardless of the debut date, it is expected to arrive in the US about four months late. +++