+++ AUDI earnings took a substantial hit in a “very challenging” 2024, and company bosses say that this year “will not be any easier”. The Volkswagen Group’s Progressive brand family, led by Audi, delivered 1.7 million vehicles in 2024, down 12% on 2023, contributing to a 7.6% dip in overall revenues to €64.5 billion. Meanwhile, operating profit margin dipped from 9.1% to 6.0%, compared with 8.1% at Mercedes-Benz and 7.7% at the BMW Group over the same period, for context. Revealing the company’s performance at a press conference in Ingolstadt, Audi CEO Gernot Döllner said “2024 was definitely a year of transition” and “exactly what we forecasted has actually happened”. +++
+++ Automakers from CHINA are rapidly gaining market share globally, threatening established car giants with cheaper, feature-rich vehicles. From South Africa to Brazil, buyers are embracing Chinese brands like Great Wall and BYD, while Ford and GM struggle to maintain their foothold in these growing markets. +++
+++ JEEP is priming the next-generation Cherokee for launch next year, with the new-look SUV set to offer the choice of petrol or electric power. It’s set to be a close relationship of the flagship Jeep Wagoneer S, making the switch to Stellantis’s STLA Large platform. Indeed, the new Cherokee shares several design cues with the Wagoneer S, including a sloping roofline, squared-off haunches, rear doors set into the wheel arches and doorhandles recessed into the body. Up front, however, the Cherokee is expected to feature a more prominent variant of Jeep’s 7-slot grille than that on the Wagoneer S. And at the rear, it appears to have a boxier tailgate and larger lights than the Wagoneer S, suggesting a look familiar from the Grand Cherokee. The appearance of a tailpipe suggests that the prototype packs an petrol engine, rather than a battery-electric powertrain. It’s possible that this is the twin-turbocharged 3.0-litre ‘Hurricane’ straight-6 from the petrol-powered Wagoneer and Grand Wagoneer, offered with outputs of 420 hp and 510 hp. An electric Cherokee is set to follow after the launch of the petrol model, likely borrowing the 600 hp dual-motor, 4-wheeldrive powertrain from the Wagoneer S. This is paired with a 118 kWh nickel-manganese-cobalt battery in that car, giving it a range of 485 km (according to the US’s EPA test, which is less lenient than the WLTP regimen used in Europe). The new Cherokee will slot into Jeep’s range between the new Compass (due this year) and the Wagoneer S. The Grand Cherokee will be pulled from sale in Europe in the coming months to make room for the Wagoneer S. A similar decision may be made for the Wrangler when the upcoming Recon EV lands in Europe next year. +++
+++ Austrian contract manufacturer MAGNA STEYR is to start production of the GAC Aion Y and Xpeng G6 in June. The move comes as Chinese car makers seek to establish operations in Europe to circumvent increased EU import tariffs on EVs from China. Magna Steyr’s Graz facility, which has an annual production capacity of around 200.000 cars, has to date built more than 4 million vehicles for a diverse variety of brands. But with current contracts (including those from BMW and Toyota for the production of the Z4 and GR Supra) winding down, Magna has been seeking new clients to maintain operations following a round of retrenchments in 2024. +++
+++ The next-generation MAZDA CX-5 will receive a new petrol engine, marking the brand’s latest commitment to offering combustion-powered cars for the foreseeable future. It said the new unit would be named the Skyactiv-Z, suggesting it will replace the 186 hp Skyactiv-X unit offered in the current CX-30 and ‘3’. Mazda added that the Z engine will comply with the incoming Euro 7 emissions standards and that it will be paired with a hybrid system in the CX-5. It will also feature fewer engine control units (ECUs) and different types of control software to simplify development and production, cutting costs. Meanwhile, Mazda reduced its investment in electrification from ¥2 trillion to around ¥1.5 trillion (from €12 billion to €9 billion). It said it would scale back its spending on electrical architectures, hybrid systems and battery management, instead relying on partnerships with other manufacturers such as Toyota and China’s Changan. Indeed, Mazda’s deal with Changan has already yielded a new electric car, the 6e saloon. The 6e will be followed by an electric SUV developed by Mazda in-house, due around the same time as the next CX-5. It will be assembled in Japan and will use batteries designed in collaboration with Panasonic. Announcing the leaner electrification strategy, Mazda president and CEO Masahiro Moro said: “While a large amount of investment is required for batteries, demand is highly uncertain. We will implement careful and efficient investment while monitoring technical innovation”. Moro added that the revised plan is designed to “minimise business risks and improve business efficiency”, reflecting Mazda’s position as “a small player”. “As a Japanese car maker, we will boldly increase our areas of co-operation to maintain our international competitiveness”, said Moro. +++
+++ The radical RENAULT 5 TURBO 3E will arrive in 2027 as the brand’s most powerful and advanced road car ever, packed with 540 hp and Porsche 911-baiting acceleration. This electric reincarnation of the 5 Turbo of 1980 (also the number of examples that will be built) is said by Renault to have created an entirely new segment: the ‘mini-supercar’. Renault Group design chief Laurens van den Acker said: “Essentially there were no restrictions with this. I think we’re living in quite a good era in design at Renault Group at the moment. All our dreams seem to be coming true, and to do a little car with these proportions is a dream”. This was achieved through a one-of-a-kind role reversal between designers and engineers, he said: “We had designed a car before the engineers got their hands on it and then the engineers made it happen, whereas in a normal world it would be the other way around”. The 5 Turbo 3E is loosely based on today’s retro-styled Renault 5 electric supermini but with a bespoke platform, its own bodywork and a pair of in-wheel motors. These combine to produce a claimed 4.800 Nm of wheel torque, although the torque transferred to the road is likely to be more like 10% of that figure. The resulting performance is a 0-100 kph time expected to take less than 3.5 seconds and a track-only top speed of 270 kph. The in-wheel motors are said to deliver their power to the rear wheels more immediately than conventional ones, while enabling more precise control of each wheel and providing a “significant” weight and space saving at the axle. The technology (which has been supplied by British specialist Protean Electric) removes the need for an electronic differential. The motors draw their power from a 70 kWh battery pack that is fitted in a way that optimises agility and offers “spectacular” drift capabilities, claims Renault. It even has a dedicated drift mode and a rally-style vertical handbrake. The battery pack is good for a range of 400 km, although Renault has admitted that it will last between 15 and 20 minutes when driven flat-out on a track. Given its track credentials, the thermal management of the battery is such that it can be driven at speeds of up to 270 kph before being fast-charged at 350 kW, enabling it to charge from 15% to 80% in 15 minutes. Renault CEO Fabrice Cambolive said: “For me, it was very important to be able to have as extensive as possible coverage in terms of customer needs for the 5 E-Tech; beginning with a very interesting price bracket but opening the adoption of this car to people who want extreme sensations. The all-aluminium platform was developed by Renault’s sporting sister brand Alpine and has been designed to achieve no compromise in performance, lightness, agility or efficiency. It aims to be “in line with supercar standards”. The platform sits under a bespoke body made of lightweight materials, with only the mirror, door handle and taillights carried over from the standard Renault 5. Its carbon composite structure means it has a kerb weight of around 1.450 kg, which is just 1 kg more than the Renault 5 despite its larger battery pack, extra performance and additional motor. It has been designed to look like a supercar while referencing the original 5 Turbo and 5 Turbo 2, with aero-optimised front and rear bumpers as well as a front splitter and a large air outlet on the bonnet to maximise downforce. It also has side scoops to funnel air under the rear lights and make it as slippery as possible, along with rear wing extensions, large intakes to cool the motors, 20in alloys and a squat overall appearance. The menacing appearance has been achieved thanks to a change in dimensions. It’s 158 mm longer, 256 mm wider and 118 mm taller than the standard 5, with the windscreen moved back and the wheelbase extended to help it achieve “the length of a city car for the width of a supercar”. Talking about the challenges faced when designing the car, van den Acker said: “The big enemy is weight because of the battery. This car is 1.450 kg and we’re trying to get it lower knowing that an Alpine A110 in aluminium is 1.000-plus kilos. This is the biggest drawback: weight and price. Weight is a never-ending battle”. When asked about the subsequent learning curves during development, van den Acker said: “I think we’ve learned that conceptually it’s possible to put our dreams on the road. I’ve had a long career in design and we’ve stood there in front of a concept car and said ’this gives you an impression of the future direction, but it won’t be like this, because A, B, C, D, F’. The biggest eye-opener to us is how close to the concept we can get if the company is behind it”. Inside are a pair of bucket seats upholstered in Alcantara, hand-woven tartan cloth on the dashboard, 6-point harnesses, a raft of weight-reducing carbon and the same 10.1 inch instrument display and 10.25 inch infotainment touchscreen from the standard 5, although in this the instrument display will have its own, 1980s-inspired look. The driver’s seat will be upholstered in its own colour. Cambolive previously suggested that there could be more performance models in the pipeline for Renault after this. “I prefer to speak about Turbo 3E, and after that to see what we can do on top of that if Turbo 3E is a success”, he said. “Let’s build our ‘sportivity’ step by step”. Exact pricing is unconfirmed, but it will be below the €240,000 commanded by sibling brand Alpine’s similarly extreme A110 R Ultime track car. Deliveries will begin in the first half of 2027. +++
+++ Another headache for TESLA . Chinese automaker BYD unveiled a line-up of electric vehicles that it says can charge almost as fast as it takes to refuel a regular car. The new battery system allows for 400 kilometers of range in just 5 minutes of charging. That’s quicker than anything else out there. +++
+++ It’s not quite as remarkable as a General Motors-Ford cooperation, but a report today says Honda plans to procure batteries for its hybrid vehicles from rival TOYOTA ’s new $13.9 billion battery complex coming on line in Liberty. As I’ve noted before, the Japanese are grappling with the threat of new U.S. tariffs quietly with little drama. This arrangement, if confirmed, would signal that even rivals Toyota and Honda are shrewd enough to combine efforts to avoid tariffs. Honda will take in Toyota’s U.S.-made batteries for about 400.000 vehicles, which is enough for all of the hybrid cars it sells in the U.S. starting in fiscal 2025, which begins in April. A spokesman for Toyota Motor North America would not confirm the report, but told: “We are constantly evaluating our competitiveness and making decisions to support our North American operations, helping to ensure our promise of long-term employment stability. We do not comment on single transactions and have nothing to announce at this time”. The first production batteries from Toyota’s 1.800-acre, 30 gigawatt-hour battery complex are expected to come off the first production line this spring. The massive facility will produce 2 sizes of battery cells; a cell phone-size unit for traditional hybrids and a VHS tape-size for plug-in hybrids. The complex is expected to be complete by 2028 and employ an estimated 5.100 people, with seven buildings and two production lines planned for each: Ten lines will build battery packs for future electric vehicles and plug-in hybrids, while four lines will build battery packs for gasoline-electric hybrids. +++
+++ VOLKSWAGEN could revive plans to launch a highly capable electric off-roader by using a new platform being developed by Scout Motors. The American brand, inspired by the Scout range of Jeep-rivalling off-roaders made by International Harvester in the 1960s and 1970s, was launched by the Volkswagen Group in 2022 and is currently developing an SUV and a pick-up truck that will sit on a bespoke ladder-on-frame chassis. Although wholly owned by Volkswagen, Scout Motors is an independent company and has been conceived to act as a fast-moving start-up with a heavy focus on advanced technology. The Terra pick-up and Traveler SUV will both be offered with electric and range-extender powertrains and will benefit from software developed by Volkswagen’s new joint venture with Rivian. The models will be built at a new US plant under construction in Georgia, and are due to be launched in around 2028. The development of a bespoke ladder-on-frame chassis is necessary to give the Scout vehicles genuine Jeep Wrangler-rivalling off-road ability. Scout technical boss Burkhard Huhnke told that the firm offered “a chance for the Volkswagen Group to observe how a start-up would take on these challenges”. He added: “There is no body-on-frame platform in the entire group, so someone has to start. There is no body like that, EV like that, chassis like that, so we have to start from scratch”. Asked how closely Wolfsburg is monitoring its investment, particularly in the ladder-on-frame chassis, Huhnke said: “You never get money for free”. Speaking about the challenge Scout faces, he said: “Efficiency is key. I’ve taken the challenge to become a benchmark R&D organisation in the world, from a size and cost perspective. That is an interesting challenge appreciated by our sponsors as well. Of course, we are under observation”. While Huhnke did not directly address the Volkswagen Group’s interest in the ladder-on-frame chassis, sources suggest there is a desire to use it for further vehicles, although given the timelines for the Scout launch, any other models adopting the platform would not appear until at least the early 2030s. In 2020, Autointernationaal.nl revealed plans by Volkswagen to launch a large electric off-roader. The vehicle, known internally as the ID Ruggdzz and set to use a variant of the MEB platform, would have served as a Defender-rivalling SUV. The model had been planned for a 2023 launch but was one of a number of models scrapped after a change in Volkswagen management. However, Autocar sources suggest Volkswagen is keen to revisit the concept of an electric off-roader, and the Scout chassis would be a natural fit. Audi could also be interested in Scout’s platform. As reported in 2023, Audi is considering plans to launch its own 4×4 off-roader, with a model that could potentially be built alongside the two Scouts to make maximum use of the new plant’s production capacity. Scout boss Scott Keogh recently said the factory has been designed so it can produce models for other Volkswagen Group brands. +++