🤺 Auto Industry: Labor Tensions, EV Rivalries, and Unexpected Partnerships

TL;DR: The auto world is buzzing 🐝 

BMW recycles, AM radio fights for survival, and Tesla’s Cybertruck hogs the EV spotlight. Meanwhile, Ford sweats over China, Kia crushes it in sales, NIO eyes VW’s turf, and Sharp makes...a car? Oh, and labor unions aren't playing nice either. Buckle up!

Today's Email

• 🤓 Headlines and Context

  • BMW Goes Green with Redwood Materials

  • AM Radio Makes a Comeback?

  • Tesla Cybertruck Takes Over EV Truck Market

  • Sharp Jumps into the EV Game

  • EU Car Sales Hit a 3-Year Low

  • Waymo and Hyundai: Self-Driving Taxis in the Works …

• 🛠️ Labor and Toil

  • UAW Sets Strike Deadline for Ford’s River Rouge To …

  • UAW Threatens Strikes Against Stellantis Amid Cont …

  • Teamsters Decline to Endorse Trump or Harris in 20 …

• 🔎 All Eyes On China

  • Ford's Existential Crisis

  • Kia's Success in China

  • NIO Eyes Volkswagen's Brussels Plant

  • Maxus eTerron 9: China's Electric Truck in Europe

BUSINESS

🤓 Headlines and Context

BMW Goes Green with Redwood Materials

BMW is teaming up with Redwood Materials to recycle batteries from its electric and hybrid vehicles, including Mini and Rolls-Royce. Redwood, founded by Tesla’s former CTO JB Straubel, will process these batteries at its Reno and Charleston facilities. The recycling program recovers around 95-98% of materials, feeding them back into the supply chain for new EV batteries.

Why should dealers care?
As the EV market grows, battery recycling is becoming a critical piece of the puzzle—and BMW’s commitment signals a more sustainable future (and maybe some new marketing angles).

AM Radio Makes a Comeback?

The "AM for Every Vehicle Act" just passed the House committee, aiming to mandate AM radio in all new cars, including EVs. Supporters argue AM radio is essential for emergency broadcasts. However, automakers like Tesla and Ford aren’t thrilled, citing interference with EVs.

• Pros: Emergency communication

• Cons: Increased production costs and possible interference issues

Does this mean more costs for manufacturers?
Yep, and you can bet some of that might trickle down to car buyers.

Tesla Cybertruck Takes Over EV Truck Market

Tesla's Cybertruck racked up 5,175 registrations in July, nearly matching the combined sales of all other EV trucks like the Ford F-150 Lightning and Rivian R1T. But don’t get too excited; Tesla still has a massive backlog of 2 million preorders to tackle.

Quick Stats:

• Total EV registrations in July: 118,000 (up from 101,000 last year)

• Tesla’s Challenge: Clearing that 2-million-order backlog

Will the Cybertruck dominate the EV market?
It’s off to a roaring start, but meeting demand is the real test.

Sharp Jumps into the EV Game

Sharp, the electronics company, is getting into the car biz with its new LDK+ electric minivan, developed in partnership with Foxconn. This quirky EV boasts solar panels, a 65-inch screen, and AI integration for home appliance control. Currently sold in Taiwan, it plans to hit Japan by 2030.

Just what we need—a car that’s basically a giant tablet with wheels.

EU Car Sales Hit a 3-Year Low

August wasn’t kind to the European auto market. New car sales in the EU dropped 18.3%, marking a three-year low, with EV sales plummeting 44%. Major brands like Volkswagen, Stellantis, and Renault suffered double-digit losses. On a brighter note, hybrids gained ground, capturing 31.3% market share.

• Key Drops: Germany (68.8% EV decline) and France (33.1% EV decline)

• Hope on the Horizon: EV market share could recover to 20-24% by 2025

What’s causing the slump?
A mix of declining sales, EV competition from China, and policy uncertainty.

Waymo and Hyundai: Self-Driving Taxis in the Works?

Waymo, Alphabet’s self-driving unit, is reportedly in talks with Hyundai to produce autonomous taxis using the Ioniq 5. This move could replace China’s Zeekr models currently under consideration. Both companies have remained tight-lipped, but this development aligns with Waymo's existing robotaxi operations in Phoenix, San Francisco, and LA.

Bottom Line: The autonomous taxi race is heating up, and Hyundai might be the next big player to watch.

What’s the holdup?
With the Biden administration's new 100% tariff on Chinese EV imports, sourcing the right manufacturing partner is key.

🛠️ Labor and Toil

Yesterday, we covered some big moves in the labor conversation; catch up with that full article here. Today, we have updates.

UAW Sets Strike Deadline for Ford’s River Rouge Tool and Die Unit

The UAW has set a September 26 strike deadline for Ford's River Rouge tool and die unit over unresolved local contract issues. Ford stated that negotiations with UAW Local 600 are ongoing, focusing on job security, wage parity, and work rules.

UAW Threatens Strikes Against Stellantis Amid Contract Disputes

The UAW continues to pressure Stellantis, alleging contract violations and delays in investments. UAW President Shawn Fain indicates that strike authorization votes are imminent for multiple local chapters. Stellantis disputes the claims, but with 28 local grievances filed, the possibility of targeted strikes on key Jeep production looms.

Teamsters Decline to Endorse Trump or Harris in 2024 Presidential Race

In a significant departure from tradition, the Teamsters announced they will not endorse a candidate in the 2024 presidential race. Despite internal polling favoring Trump (59.6%) over Harris (34%), President Sean O'Brien cited a lack of solid commitments from both parties on key issues as the reason for this decision.

🔎 All Eyes On China

Ford's Existential Crisis

Ford CEO Jim Farley warned that Chinese EV makers pose a "serious threat." With their advanced engineering and affordable materials, it's not hard to see why.

• Ford's Response: A new platform for affordable EVs is in the works, plus an electric Puma crossover is launching in Europe. But there's a hitch: spending on EVs is being cut, and the electric F-150 is delayed until 2027.

Will tariffs slow China down?
Starting September 27, a 100% U.S. duty on Chinese EVs kicks in. It might help, but Chinese automakers are already finding ways around it.

Kia's Success in China

Kia is thriving in China, a market where many foreign brands are struggling. Their EV5 SUV, priced at just $21,000, has boosted sales over 20,000 units for three months straight.

• Sales Surge: Kia's sales in China are up 61% this year, aiming to hit 230,000 by year-end.

• Expansion: The EV5 is heading to Australia and New Zealand soon.

Should dealers be worried?
Yes and no. Kia’s success shows demand for affordable EVs, which is something to watch closely.

NIO Eyes Volkswagen's Brussels Plant

NIO is reportedly bidding to buy VW’s Audi plant in Brussels, which is set to close after the last Audi Q8 e-tron rolls off the line next year.

• Why It Matters: If NIO takes over, it underscores how Chinese automakers aren't just entering the market—they're reshaping it.

• NIO's Moves: The brand is aggressively expanding in Europe despite a 20.8% tariff on Chinese imports.

Is this a game-changer?
Potentially. If NIO succeeds, it will signal a new phase of competition in the European market.

Maxus eTerron 9: China's Electric Truck in Europe

The Maxus eTerron 9, an all-electric mid-size truck, is entering the European market with some impressive specs.

• Specs: 436 horsepower, a 102 kWh battery, 267-mile range.

• Sales: Starts next month with deliveries expected by January 2025.

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