It turns out people do have their limits when every new car is, for some reason, a midsize crossover that costs $50,000 and $60,000. Enter two lone heroes, here to lead us out of the darkness and into the light: the Nissan Sentra and Hyundai Elantra, which were among Q2’s biggest sales growth winners as the car industry finally begins shaking off some of the supply chain nightmares it’s endured for years.
Congrats on making it to another Friday, Autopia. Also on today’s menu: Elon Musk’s warm welcome in France sparks jealousy in the heart of another car executive, even while he contends with “core socialist values” in his most important market; and Ford’s got some EV production woes while gas trucks pay the bills. Let’s hit it.
Stellantis’ Tavares Has Musk Envy But Begrudgingly Rolls Out More EVs
Of all the major automotive CEOs, Stellantis’ Carlos Tavares—who oversees a sweeping 14 brands across multiple major markets—is one of the bigger EV skeptics. I never got the sense there were complex energy and carbon-related reasons behind this, as has been the case with, say, Toyota, but more because he just didn’t want to bother with implementing this paradigm shift.
But that’s costing him on his own turf. When Elon Musk went to France in May, he got the red carpet treatment from President Emmanuel Macron, who begged him to set up production in that country. (Which, side note: I would love to see how Musk’s “I sleep on the factory floor and also everyone else should sleep on the floor” work ethos tracks with France’s “Yeah, we’re not coming to work at all in August” vibes.) Here’s Tavares’ reaction, according to Bloomberg, which reports he’s adamant about the roadblocks to EVs, small cars and everything else:
This seems to have irked Carlos Tavares, the CEO of Stellantis NV, France’s top carmaker. The Portuguese national has had a chillier relationship with Le Maire, clashing with him over plans to expand production in lower-cost countries. Tavares’s warnings about the influx of cheap Chinese cars, and concerns about Tesla rival BYD Co. also being warmly welcomed as it mulls European factories, apparently have fallen on deaf ears.
On Wednesday, Le Maire called for Tavares to show some “economic patriotism” and follow archrival Renault SA in producing a small electric car in France. The CEO hit back before day’s end, reiterating his view that carmakers without legacy combustion-engine assets are getting favorable treatment relative to companies that have made greater contributions to the wealth of western Europe.
“There is no reason why we should take an additional risk by making compact cars in a high-cost country,” Tavares told reporters during a conference call. “If the country is trying to attract newcomers with the investments of new plants, please ask them to take that risk.”
Now, Tavares has some legit gripes. This current move to electrification is rocky, expensive, difficult to figure out, will take longer than everybody’s saying and will generally be a giant pain in the ass if you’re the kind of dude who has to answer to shareholders and runs a huge global operation with different needs in different markets. But critics say: tough baguettes, bro.
The CEO is overseeing a sprawling empire of 14 brands and dozens of factories around the world, many of which will need to be retooled. He’s embarked on the overhaul by taking stringent cost-cutting measures at a time when governments are trying to protect jobs. Unions have griped that Stellantis isn’t investing enough in maintaining factories, citing clogged toilets and un-mowed grass.
Looming large behind the squabbles is the realization that the EV shift will require significantly fewer workers, and the concern that those “newcomers” will make matters all the more challenging.
[…] It’s a similar picture in France. Stellantis has pledged to make a dozen EVs in the country, but they’re mostly larger, higher-end models like the e-308 sedan and e-408 crossover. Le Maire wants Stellantis to expand production of the electric version of the compact Peugeot 208, one of Europe’s best-selling cars, in France to retain jobs and help counter inflation.
Sergio Marchionne (RIP)’s thesis was that car companies could survive this moment if they merged operations, consolidated and achieved scale together. Stellantis is more or less a reflection of that philosophy. But now it’s having trouble doing that and being all things to all people.
But Musk Has To Commit To Fair Play In China
Here’s the thing about Musk, though. He can happily tell California, the SEC, American regulators or even his landlords to eat shit and generally, he’ll skate. But the Chinese government? You don’t get to say no to those people. If you do, they’re happy to find you a nice gulag somewhere until you learn your lesson, or for the rest of your life, whichever comes first. Funny how that works.
In China right now, you basically have a ton of new EV brands springing up and competing viciously with each other. Margins are razor-thin. It’s part of why Chinese automakers want in on Europe and other places. But now, the government’s cracking down on a price war that companies like Tesla, BYD and maybe a couple of others could easily win, and in doing so would tank a bunch of smaller players.
And when the Chinese government asks you to do something, they don’t want you to half-ass it. From the Financial Times:
Elon Musk’s Tesla has joined Chinese automakers in pledging to enhance “core socialist values” and compete fairly in the country’s car market after Beijing directed the industry to rein in a months-long price war.
Folks, I’m wheezing. The idea of Mr. Destroy The Woke Mind Virus signing a “socialist values pledge” is giving me so much energy, I don’t need any more coffee this morning. I don’t even need lunch later. My body will draw life force directly from this moment and this moment alone, like Superman getting power from the Earth’s yellow sun. I’m not even sure I can die anymore.
More on that:
The joint letter, which came at the behest of the Ministry of Industry and Information Technology, appeared to signal a truce among the top EV makers in the world’s biggest car market.
Miao Changxing, a senior inspector at the ministry, said China’s car industry needed to avoid “reckless” price-cutting.
The letter — which uses language popular with Chinese president Xi Jinping and the ruling Communist party — also highlights how Tesla is navigating an increasingly fraught US-China business landscape and rising competitiveness in the world’s biggest EV market. Tesla was the only foreign carmaker to sign.
[…] The episode is the latest reminder of the tightrope many multinationals must walk amid increasing assertiveness from the Chinese government and hawkishness in their home markets. In recent years, accusations of obeisance to Beijing have hit countless companies from HSBC and Nike to the hotel group Marriott and car company Daimler.
You wanna play in the world’s biggest car market? You play by Xi Jinping’s rules. And don’t forget it.
Small Cars Win Big As Industry Roars To Comeback
The U.S. auto industry’s sales results for Q2 2023 (from what we’ve seen of the companies that report them) have been some of the most positive ones I’ve literally seen in a few years. Since the spring of 2020, for obvious reasons, sales results have been a fairly unreliable predictor of normal trends like production capacity, popularity, discounts—all the usual data we use to know how things are going.
This quarter, as the business really starts to rebound from the chip shortages and similar disruptions, was full of wins across the board. Some losses, too, which we’ll get to. But one notable thing I found from Automotive News was that two smaller cars are having a moment. Sentra sales were up 103% in just Q2 and the also-small Versa and Kicks are doing so well they’re calling in backup:
The Nissan division sold 227,824 vehicles in the second quarter, 32 percent more than a year earlier. Infiniti’s volume climbed 57 percent to 16,529 vehicles.
“There’s still some pent-up demand out there of consumers that waited,” [U.S. Nissan sales chief Judy Wheeler] told Automotive News on Monday. “Although, they are being more particular than they were two years ago.”
Nissan’s robust lineup of small, fuel-efficient models is lifting sales.
“The demand is large enough that it is outstripping our supply,” Wheeler said. “It also means that we need to continue to increase our Versa, Sentra, Kicks production now and into the near future.”
On the Hyundai side, the Elantra was up 60% in June and 58% overall in Q2. I haven’t driven the new Sentra yet but I’m a big fan of the current Elantra, especially in hybrid form, where the car’s such a champion I wrote a blog post in praise of it after I rented one for a road trip. It wasn’t even a press loaner. You’re welcome, Hyundai.
Cars like the Corolla and Civic tend to be perennially strong sellers, but it’s interesting to see this trend spread to other small cars too. Can you blame people? Everyone’s sick of the sky-high car prices.
Ford Wins The Usual Way While EV Sales Are Up And Down
“Ford Motor Co.’s U.S. sales increased 9.9 percent in the second quarter, as F-Series pickup volume jumped to the highest level in nearly three years,” Automotive News‘ Nick Bunkley writes. Folks, that’s how you know things are getting back to normal. In detail, that means Ford moved 212,516 F-Series trucks in Q2, up 34% from the same time last year and the best for any quarter since 2020.
But EV production and sales have had their ups and downs, literally. Ford’s got ambitious EV plans and the Mustang Mach-E and F-150 Lightning represent the tip of the spear for that, but both have had production and supply issues—as well as Ford trying to iron out the kinks. According to Electrek, the Lightning was up:
F-150 Lightning sales reached 4,466 in the second quarter, up 118.7% compared to just over 2K last year. Keep in mind, however, Ford began delivering the electric pickup last May, so doubling sales over the previous year is to be expected.
The automaker says it continues attracting new customers, with 50% of buyers coming from different brands.
That last stat is a very big deal. But the Mach-E was down much of Q2, only to spring to a last-minute comeback:
On the other hand, Ford’s first electric car, the Mustang Mach-E, saw sales fall 21.1% YOY. The decline comes after Mach-E sales were down 20% in the first three months of the year. Year-to-date (YTD) sales of the electric SUV are down 20.6%.
Andrew Frick, VP of sales distribution, said, “Improved Mustang Mach E inventory flow began to hit at the end of Q2 following the retooling of our plant earlier this year.”
Ford announced last year it would be retooling its Mexico plant, where the Mustang Mach-E is built, which would result in downtime at the facility. Frick said the move “helped Mustang Mach-E sales climb 110% in June.” Overall, Ford’s EV sales were up 35.5% in June, despite a slow start to the quarter.
Electrek’s takeaway is the same as mine here: the “legacy” automakers have spent a lot of time getting their supply chains in place for EVs and still are running into production challenges, while the ones like Tesla, Polestar and Rivian that have always been doing this could be in a more reliable position in the immediate term. If the supply chain’s indeed righting itself, the rest of this year is going to be very interesting on the Ford and General Motors EV front—and it may rest on their ability to produce these cars without issue more than anything else.
Your Turn
If you bought a new car right now, what would you be shopping for? A Mustang Mach-E has been discussed at our house, especially if the tax credits play in our favor somehow. But I think that’s a ways off for now.
France’s “Yeah, we’re not coming to work at all in August” vibes
Just for the sake of clarity, in France we have 5 weeks of paid vacation.
Out of those 5 weeks we have 4 weeks that must be taken between June 1st and September 30. ( there’s ways around that, but for the current discussion it’s unimportant )
Now, since many people in the workforce have kids, school vacation usually starts in early July ( they started today ) and ends in late August or early September. ( depending on the year.
Car factories works in shifts and with established teams, and you can’t really go in vacation when you want. So many of them tend to close during the 14th July ( it’s a bank holiday obviously ) to 15th August ( it’s also a bank holiday ) or variations of it to cover both bank holidays, which tends to make August a slow month as many people are in vacation.
Note that other industries, to avoid the the August rush uses July as the month off…
And if you’re like me, you’re not tied to a factory, so you can do what you want as long as you respect minimum two weeks in one single block. ( the other two weeks can be split, that’s one of the unimportant way around )
Another thing to take into consideration is that the 4 weeks off for a car factory is also when the heavy maintenance is performed, and machines are replaced.
Thanks that’s really interesting about how France manages it. But clearly the system works since France does have a good car manufacturing industry and lets not forget their aerospace presence.
If you bought a new car right now, what would you be shopping for?
PHEV minivan that can tow 3,500 lbs. Chrysler Pacifica PHEV isn’t rated to tow anything, so fingers crossed the 2024 Sienna comes out as a PHEV and can tow something. My 2014 Dodge Grand Caravan won’t last forever and my popup camper works great.
GMC Sierra 2500HD Duramax
“On Wednesday, Le Maire called for Tavares to show some “economic patriotism””
Uh huh. Where did Stellantis set up their global headquarters again? Ah yes… The Netherlands… and the “financial headquarters” in London. And why did they do that?
For tax savings.
So where is Stellantis’ “Economic Patriotism”, eh?
If I was in the French government, that’s the first thing I’d point out to Tavares.
“Sergio Marchionne (RIP)’s thesis was that car companies could survive this moment if they merged operations, consolidated and achieved scale together.”
I think Mergio was wrong about that. All a car company needs to do is have some proper future plans and implement those plans. For example, if future regulations make building BEVs practically mandatory, you just might want to develop a great BEV platform ahead of time so you won’t be screwed when those regs come into effect.
It also helps to keep product up to date and also sell what consumers want. And what do consumers want? Well clearly many of them want BEVs. Did/does FCA or Stellantis any GREAT BEVs?
No.
And that’s part of FCA’s/Stellantis’ problem.
“If you bought a new car right now, what would you be shopping for?”
If I was in the market right now, I would be looking at a used Tesla Model S… but would consider other decent BEVs such as the Bolt, EV6 and Ioniq 5. And I would also consider a good hybrid like the Prius.
Problem is a lack of availability has caused used prices for vehicles like the Prius to shoot up. In the past, a used Tesla Model S was like 5X the cost of a Prius of similar age and mileage. Pre-COVID, it was easy to find a good used Prius for around CAD$7000.
But now? Used Model S vehicles have come down in price while the Prius prices have stayed high… and now a Model S is only around 2x the cost.
So would I rather have a used Prius for CAD$15K or a used Model S for CAD$30K?
I’d rather have the Tesla.
But that’s how it is right now.
We shall see how it is in a year or two when I actually expect to be in the market for a car.
My wife got rear-ended by a motorcycle a couple of days ago (she’s alright and somehow the guy who got tossed off his motorcycle is also fine). Her Forester is in pretty rough shape, though I doubt it’s totaled. But let’s say it was.
We now have the van as the family truckster, so I think she would opt to replace it with something smaller and better on gas. If the base model Prius was available without stupid markups, we’d probably lean that way. Or maybe we’d just swap it out with a run of the mill Impreza hatch.
Who am I kidding, she’s absolutely in love with that Forester (hard to explain that one) and she would probably opt to just replace it with nearly the exact same thing.
Only reason I’d shop for a brand new car right now is winning gobs of money. So, since I need a reasonable family car and demand a stick, CT5-V Blackwing should fit the bill.
Maybe I can find a reliable shop to convert it to a wagon.
My soon-to-be wife and I are taking a road-trip in a 2018 Chevy Cruze to get married in Colorado. When we get back we will be looking at possibly getting a Kona EV or a Bolt EUV.
We want something that’ll have enough room to sleep in the back with the seats down, but isn’t some ungodly behemoth. We want to make road-tripping a bigger focus in our lives. Priced around 30k-ish. We keep leaning towards the EUV because we’ve read a lot about how people have successfully gone camping in them.
I know that many people will say to skip that electric car for now and we still may, but we want to be as environmentally conscious as possible. I almost entirely commute to work on an electric scooter to cut down on fuel and emissions as it is. Even in the winter.
I’ve got to wonder how many successive owners of Chrysler can continue to “focus on cutting costs”
I’ve worked for large, publicly traded manufacturing companies most of my career. Cutting costs is ALWAYS critical. Quarterly numbers are ALWAYS critical. We always need more more more revenue and lower lower lower costs. To infinity.
I am casually watching the market. Have a 10 and 11 year old car, time to replace the 11 year old car since my wife wants more space.
The Toyota Sienna really checks all the boxes. They’re impossible to get, unless you want to pay an extra $10k+ to the dealer as a tribute. No thanks. A Highlander Hybrid might work, same deal. The Grand Highlander Hybrid might be an option, but I’m guessing that won’t be easy to get either. Its almost like consumers are drawn to these fuel efficient vehicles. Imagine that.
So I just spent a bunch of money on maintenance for the current car, since it seems like it won’t be replaced any time soon.
I really don’t want another vehicle that is rated 18/24 for fuel economy. Gas will not be “cheap” forever. Unfortunately the Toyota hybrids have few competitors.
A plug-in Pacifica might be worth a look, though they’re pretty long in the tooth these days and I’ve seen some crazy markups on them too. I was going to suggest the Kia Carnival, but the fuel economy on those is abysmal. No wonder Toyota dealers can get away with daylight robbery.
My wife wants AWD, so no Pacific PHEV. We are leery of Chrysler products anyway.
I am going through the exact same thing right now. I spent a couple hours yesterday researching hybrid 3-row vehicles, and what I found was…there aren’t nearly enough hybrid 3-row vehicles. Which, as you say, is why Toyota dealers can charge whatever ridiculous price they want.
Automakers are so focused on developing BEVs for the long term, that they aren’t releasing any hybrids for the near term. So in 2023, our choices are still mostly gas-guzzling ICE cars. Same as it ever was.
Anyway, I decided I have no choice but to keep my 2018 Outlander. Its 3rd row is tiny, but my kid is still small enough to use it for a while longer, and the new Outlander PHEV is not appreciably bigger. (Honestly what I really want is just a little more space behind the 3rd row.)
I guess the OEMs just think the EV haters will continue to buy guzzlers, and anyone who doesn’t want a guzzler will buy an EV? No need for anything in between?
Of course, read any automotive press about Toyota’s “conservative approach” and they are getting lambasted for it. I think Toyota is right. The market seems to think Toyota is right, they can’t keep their hybrids and PHEVs on the lot.
FWIW, I’m not an EV hater, there is just no EV the size of a Sienna and I also drive this vehicle into the middle of nowhere regularly. I need to refuel in rural America. Can’t do that with a EV today. Hybrid would be perfect.
Honda seems to be all over the place with what they’re doing (here’s a new V6 but also if you want an Accord hope you want a hybrid) but I have to think they’ll have something in a year or two with the Pilot or next gen of Odyssey. Not that those will be easy either but maybe some competition for Toyota will be good.
Something new? I would be looking at a Prius, Civic, Elantra or Corolla.
sign me up for musk in a gulag
If money wasn’t an object, I’d probably order a new Panamera Turbo S Sport Turismo in either Carmine Red or Porsche Racing Green Metallic. I’d be plenty happy with a CT5-V Blackwing in Electric Blue with a manual though.
Since money is an object, if I really needed something new right now, I’d likely try to find one of the last Bolt EUVs at a decent price. Great for most of our family’s driving, can make use of the EVSE we currently have in the garage, and we still have the ’94 Fleetwood for long trips.
That said, I did recently buy a new-to-me black 2000 Jaguar XK8 convertible that was a little more in my price range (we’re talking decent lawn tractor $$s), so I probably won’t be adding anything more to the fleet for at least another six months to a year.
Also, props to whoever photo-shopped the Red-Star Double-Chin Elon Commumuskinski up there. That’s going to keep me smiling all day.
I’ll ditto this comment. I’ve got my eye on any Bolt at a reasonable price, battery be damned.
As another person without unlimited money, I’d be interested in a Bolt as well, but need to replace another car first…and that car cannot be a Bolt. So I guess I’ll miss out on the last affordable EV commuter car.
For my new car I want a Lincoln Subcontinental! It’s an alternate universe 3 door hatchback with a single leather bench seat, cushy navy blue carpet, and a smooth and quiet ride in a tiny car that I can actually park in cramped city parking lots.
I live in the snow belt so Mach E is a no go for me since it has a resistive heater. That’s a bummer because it’s otherwise my favorite EV of the bunch.
I’m waiting for the Equinox EV to come out. It’ll be affordable, fast charging, and have a heat pump
I really wanted to buy an Equinox EV to replace our 2012 Volt, but after seeing what happened with the the price of the EV Silverado, I lost hope on the affordable part of that equation.
As far as new cars go, I already have my two “fun” cars. For my next daily, I’ve been looking at a new WL Grand Cherokee. Nothing fancy, relatively speaking. The tried and true Pentastar V6 and base Laredo trim, which is plenty nice. I recently got a small camper I’m restoring and sold my nightmare beater truck, and also do a lot of camping, road trips and DIY projects. The Grand Cherokee is a comfortable, livable vehicle with good towing capacity (camper or utility trailer). Almost none of the new vehicles available these days offer decent towing capacity unless you want to spend beaucoup bucks on a full-size pickup or SUV. It’s a decent buy for what you get.
Problem is… the cheapest I’ve seen them new is $42K. Which I can “afford” but don’t really want to spend, y’know? Also, I’ve heard of some kinks they’re still working out with the WL and wouldn’t mind waiting another model year or two. My plan at this point is wait and see. Both save for a bigger down payment and hope they have better rebates and financing offers in a year or two. Otherwise, I’ll find a CPO, low-mileage previous generation WK and go with that for probably $10-12K less.
On musk and china:
I don’t see irony. I see a person behaving as expected under 2 different forms of government. One uses coercion, one trusts you to say what you believe. 1.5 billion people in China toe the line every day. Add musk to their ranks.
I would love to have two new cars! My wife wants a Jeep Wrangler Rubicon for the family car, my go back and forth to work ride is a Ford Maverick XLT hybrid in Area 51.
A Wrangler is an exceptionally poor family car, the Rubicon especially so. Why does your wife want that?
I’m sure the usual “sits up high, feels safe, looks cool, has custom ‘salt life’ sticker” reasons apply here.
I’m not sure how you can confidently make such a statement with no knowledge of the family.
who buys Rubicons?
Elon Musk will spend the next three weeks on Holiday in Cambodia. He’s going to return with long hair and a love for ultimate frisbee. Angela Davis lectures will be mandatory for all Gigafactory employees. Refusal to attend will be 6 months hard labor in a Chilean Lithium mine. Tesla’s white offering will be renamed “Beanie Sander’s Chest Hair”.
New Car: I have strong urge to own a Fiat. It feels like they will soon leave this market. In 20 years when future car websites are like “lol, remember Fiat”, I’ll have meaning ownership experience to shitpost.
Stelantis says they will bring the FIAT 500e to the US next year (I did sign up for email updates about it, but I’m not holding my breath). Currently, the FIAT “lineup” here consists of the 500x and hum, that’s it…
I can’t wait to be one of the dozens of people with the Fiat 500e! We’ll form a club and met at the Olive Garden off the freeway.
The unequivocal 2023 WPOE is: Elon Musk
I think you are mostly correct regarding why cheap cars are suddenly booming. Many of us have been awaiting this, especially with so many manufacturers abandoning the segment.
Personally I prefer cheap and small cars, but that’s probably why I am also very unlikely to ever buy a new car again.
I just picked up a Thundernight Metallic BMW M240i. I was looking seriously at Supras, but ultimately decided I’d rather spec the same drivetrain in my favorite color, with my preferred options, with backseats, AWD, and not pay a mark up.
Nice! That’s the best color that the 2 series comes in. I toyed with getting an M240i for a while myself. They seem like very well rounded cars and the B58 is a gem.
I don’t mind the limited edition color combos to get the manual version, but that markup was like sniffing an ammonia capsule… I literally jumped up in my chair. Yeah, no.
I’m probably an outlier in your scenario. I bought a cheap car (Soul) because it was the cheapest thing I could stomach. I didn’t want to buy and had been planning on waiting until hybrid Mavericks were more available, which as of yesterday is a whole other issue. My plan is to keep the car for a few years and then sell it as the used market has been strong. At that point hopefully there will be something available that I actually want to buy. Will my plan work out? Only the Shadow knows.
+1 for the Shadow reference.
I’d either go –
Car – Civic Sport Touring 6MT, or, more likely because those are next to impossible to find, Integra A-spec 6MT.
or
Utility – Hyundai Santa Cruz. I do really like these, and should I decide to go away from shifting gears myself in my next vehicle it is high up on the list. But Hyundai’s recent troubles give me some pause, and we’ve had 4 Kia-built vehicles in the family.
I’ll admit to the same thinking others have had on the Prius, but don’t really want to spend mid-$30k for one equipped how I really want as my only car. I don’t have a place to plug in to make the Prime, or a full-EV, realistic right now.
Only recently bought a pacifica hybrid, very happy with it. PHEV is a dream to live with, although I have the ability to charge nightly. If cost were no object I kind of wish it was an xc90 recharge, because I’m a Volvo stan, but that is really less practical in every way.
Curious bc I’m in the market – were you concerned about reliability? I’d love to get a Pacifica PHEV, but that’s the main thing giving me pause. How do you like it so far?
Likely any future new-car purchase will be BEV. Maybe, maybe a PHEV, but the writing’s on the wall.
Yeah, and the writing on the wall is that electric cars are less reliable, less long-lasting, and more difficult to use and fuel than gas cars, and nobody is going to do anything to fix these problems.
Respectfully, what the fuck are you talking about? I count 4 statements in your comment, none of which are substantiated, all of which are wrong.