Auto File: Tesla’s Semi, GM’s Treasure Hunt
02/12/2022 16:00
Dec 2 -
Joe White
Global Autos Correspondent
Greetings from the Motor City!
Happy Friday! It’s beginning to look a lot like Christmas here
in Detroit. Automakers are re-starting the tradition of
year-end receptions and media events that was thrown off by the
pandemic. Oh, and it’s cold. I am not the only one pulling out a
winter coat and finding a year-old KN-95 mask in the pocket.
Today, we’ll assess what Elon Musk did not say last night about
the Tesla Semi, take a look at how General Motors is planning to
profit from Big Data and parse the latest signals that U.S.
consumer demand for new vehicles - including Teslas - may be
cooling down.
GM’s Big Data strategy: You can keep your heated seat
“We own the data. We own the experience. We own the
architecture.”
That is how General Motors Senior Vice President Alan Wexler
summed up the automaker’s strategy to emulate Tesla and profit
from rivers of data that will flow from connected, upgradeable
GM vehicles of the future.
Speaking at a conference hosted by Barclays, Wexler offered
fresh details on how GM hopes to achieve its goal of boosting
revenue from subscriptions and data driven services (including
insurance) from about $2 billion a year today to as much as $25
billion by 2030.
GM now has a team of 300 data scientists analyzing the mountains
of information the automaker harvests from vehicles through its
Onstar telematics system, Wexler said. GM expects to gain more
data as vehicles are launched with the advanced connected
vehicle architecture GM brands as “Ultifi.”
Using vehicle telemetry data, GM could notice when a customer is
driving outside the normal commuting route, and send an offer to
try the company’s “Super Cruise” hands-free driving system
during a road trip, Wexler said. “We can offer…a try and buy.”
Telemetry data could enable GM to price its in-house insurance -
which it now offers in 50 states - based on an individual
driver’s behavior. (Tesla and other automakers have the same
idea.)
Other automakers - Tesla, BMW - have been ahead in testing ways
to shift from reliance on one-time vehicle purchase transactions
to a model built around monthly subscription revenue streams.
(Think: Apple.)
Wexler said GM is watching and learning from efforts such as
BMW’s attempt at charging a monthly fee for activating seat
warmers.
“I wouldn’t expect us to charge $18 a month for heated seats,”
Wexler said. “We are very in touch with our customers.”
Elon Musk’s Semi Semi Reveal
Elon Musk was back at Tesla Thursday night to officially
launch the Tesla Semi, dressed up like ‘68 Comeback Special
Elvis in a black leather jacket. What Musk did not say was more
noteworthy than what he did.
During his presentation, which you can watch here, Musk offered
no new details on how much Tesla Semis will cost, when or how
fast Tesla will ramp up production or the status of orders from
previously-named customers such as Anheuser-Busch or Walmart.
Tesla shares didn’t move much in early Friday trading, in line
with the broader market.
Since Musk first showed a prototype of a Class 8
battery-electric truck, battery costs have soared, making it
plausible that the $180,000 price quoted in 2017 for a 500-mile
range Semi is no longer operative.
A new EV market supply and demand equation?
Most of this year, supplies of new vehicles - especially
electric vehicles - have been well short of demand. That
profitable dynamic appears to be shifting.
In the United States, sales of cars and light trucks ran at a
14.1 million vehicle annual pace in November, Wards Intelligence
reported. That’s up from a year ago, but down from October.
Ford shares slid on Friday after the company said U.S. November
retail sales fell by nearly 16%, even though its EV sales more
than doubled. Inventories of unsold vehicles are at the highest
levels since June 2021, according to ZeroSum, a data and
software company. Cox Automotive has also noted rising
inventories.
There are signs that demand for EVs could be slowing down as
well.
Tesla is offering as much as $3,750 off the price of Model 3 and
Y vehicles, Electrek reported. Tesla’s website shows you can
order a Model 3 for December delivery, or pick from low mileage
demo models in stock now.
Morgan Stanley is warning EV sales will slow in 2023 as
rising battery costs put EVs out of reach of middle income
consumers.
In China, Reuters reported EV startup Evergrande suspended mass
production because of a lack of orders.
Volkswagen relaunches the ID3
Volkswagen has overhauled the interior, exterior and key
technology to reboot demand for its ID3 electric car.
“Volkswagen has listened to its customers and implemented many
of their suggestions,” the company said.
The most important new feature of the ID3: A 6,000 euro price
increase.
Meanwhile, Volkswagen said it is scouting Canada as a site for
its first North American EV battery plant.
Could EVs run on ethanol?
Electric vehicle manufacturers could benefit from subsidies
designed to spur consumption of ethanol as a motor fuel, under
new proposals from the U.S. Environmental Protection Agency.
BorgWarner bolts on a new electric drive unit
Auto supplier BorgWarner said Friday it has acquired Drivetek, a
Swiss manufacturer of electric drive hardware.
Got a petrol-burning van? Stellantis could make it an EV
Stellantis and French company Qinomic said they will jointly
explore a plan to offer electric drive conversions to customers
who want to swap out the combustion engine in a Stellantis
commercial van.
A Mercedes electric camper van
Ever been kept awake all night at a campground by neighbors
running gasoline generators? I have. Which is why a Mercedes
plan to offer a battery-electric camper van seems so appealing.
The “Marco Polo” name may be just for the concept/show version.
Essential Reading
Autonomous Trucking’s Lost Highway
In China, Western companies don’t set the red lines
GM gives Elon Musk’s Twitter the silent treatment
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(Editing by Alexander Smith)