DAILY DRIVE PODCAST: October 12, 2022

Hyundai Motor Group says it will spend $12.6 billion to develop software. Tesla crushes its luxury competition. U.S. worker classification plans cause Uber and Lyft shares to fall. Plus, a conversation with Zipcar co-founder Robin Chase about the future of mobility.

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EVCS launches flat-rate EV charging subscriptions

West Coast charging network operator EVCS is looking to simplify powering electric vehicles by offering a choice of monthly subscription plans.

The move marks a departure from the way such networks typically operate. Most require a low monthly fee and charge an additional amount per kWh used.

"It really is a minefield across the various networks, be it time of day rates, location-based variances and hidden fees," Kirk Johnson, chief growth officer at EVCS, said Monday. "We're trying to cut through all that with a very simplified, predictable monthly fee."

The Los Angeles company now offers three subscription tiers for its West Coast network of close to 700 Level 2 or Level 3 public chargers. A Level 2 charger can top off an EV battery from empty in 4-10 hours. A Level 3 charger can fill a battery to 80 percent in 20 minutes to an hour depending on the charger and the network.

While clear-cut pricing is important, chargi…

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How do auto suppliers gain leverage in renegotiating contracts? Bankruptcy

With hopes of achieving better contract terms, more automotive suppliers are resorting to bankruptcy — or at least threatening it — in what has become in some cases a high-stakes game of chicken with customers.

Suppliers have so far been largely successful in obtaining pricing relief from automakers, according to attorneys and consultants involved in the discussions.

But as suppliers intensify their efforts for price increases, and automakers face a bleaker economic outlook and major supplier-related financial losses, it's less of a guarantee who blinks first at the negotiation table.

The situation is not nearly as dire as the Great Recession of 2007-09, but suppliers across the tiers continue bearing the brunt of supply chain pain, and they are not afraid of pulling the bankruptcy card, according to Max Newman, attorney at Detroit-based Butzel Long who specializes in Chapter 11 proceedings.

"There have been threats of bankruptcy in connection w…

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Chevrolet Trax retooled to serve as brand gateway

The subcompact crossover segment has been one of the hottest in recent years — nearly doubling in size to more than 1 million sales since 2016 — and General Motors' biggest division is ready to double down in it, again.

Chevrolet was one of the first major brands to market a subcompact crossover, in 2016 with the Trax. Now, it is resurrecting the nameplate after a brief hiatus, with the Trax sitting out the 2023 model year.

The redesigned 2024 Trax — bigger, wider and lower; part hatchback and part sporty crossover — is being positioned as a clean break from its predecessors.

"This car shares nothing with the current one," said Scott Bell, global vice president at Chevrolet. "This is only a Trax by name."

The re-imagined baby ute will be slotted as the gateway to Chevrolet just below the Trailblazer in the smallest crossover segment, allowing shoppers multiple entry points to the brand.

The Trailblazer, introduced in 2020 with traditional …

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VW dealership employee burned, taken to hospital after explosion linked to vaping

A Volkswagen dealership employee was taken to a hospital in Seattle after an explosion in the store's designated smoking area, firefighters said.

The Volkswagen of Kirkland employee was burned, but conscious when taken to a local hospital around 6 p.m. local time Monday, according to Kirkland Fire Battalion Chief Seth Buchanan.

The Kirkland, Wash., fire department said the dealership's smoking area is next to 55-gallon containers that were empty at the time but were previously filled with flammable liquid. The employee was vaping in that area when the explosion occurred, according to a news release from Kirkland Fire.

"We believe that it flashed, so the fire in the container was immediately out. It was just a flammable gas, but it kind of exploded and blew up a 55-gallon drum and, unfortunately, it was the patient that caught on fire," Buchanan said.

The resulting explosion caught the employee's clothes, hair, hands and face on fire, Buchanan told…

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Polestar 3 EV revealed as the brand’s new volume model

COPENHAGEN, Denmark — The first crossover from Swedish electric vehicle startup Polestar is a coming of age for the Volvo affiliate.

Whereas the brand's first mainstream model — the Polestar 2 sedan — represents Volvo DNA, the Polestar 3 is a clean sheet for the automaker.

The midsize Polestar 3, revealed at an event here, is built on a new all-electric platform, sports dual motors and has an estimated EPA range of up to 300 miles. It will arrive at U.S. stores late next year and start at $85,300, including shipping.

Polestar's U.S. CEO, Gregor Hembrough, told Automotive News the U.S. will be the largest single market for the Polestar 3, with North America accounting for about 30 percent of global sales.

"We now enter into the largest segment in North America, with the newest offer on the market," Hembrough said on the sidelines of the launch event. "The luxury SUV segment arguably is one of the most revered, most sought after, and we're really t…

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DriveTime and Informed.IQ partner to automate and revolutionize car-buying and financing experiences

TEMPE, Ariz. and SAN FRANCISCO, Oct. 11, 2022 /PRNewswire/ -- DriveTime, the largest privately owned used car sales and finance company in the country, is proud to announce that it can now verify income for the majority of customers in seconds. No longer the days of printing paystubs and other stipulations, DriveTime has created a process for customers to digitally upload their documents and receive a review response within seconds through the use of AI – based optical character recognition (OCR) technology.

This significant customer experience upgrade has been achieved through a partnership with Informed.IQ, a technology company used by financial institutions to instantly and accurately verify loan origination data. Informed.IQ has become the fastest-growing supplier of automation software to the auto finance industry and now counts the majority of the country's top auto lenders as customers.

For several months, the two companies have collaborated to implement…

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GM to take equity stake in Australian mining company

WASHINGTON -- General Motors said on Tuesday it will invest up to $69 million and take an equity stake in Queensland Pacific Metals to secure a new source of nickel and cobalt for battery cells for use in the U.S. automaker's vehicles.

GM said the investment will help support EV eligibility for consumer incentives under new, clean energy U.S. tax credits. GM said the nickel laterite ore is expected to be processed using a new, proprietary process that helps reduce waste.

Under a law passed in August, automakers must source battery minerals from countries with free trade agreements in order to qualify for the U.S. consumer EV tax credits.

The GM investment is to assist in the development of its proposed Townsville Energy Chemicals Hub (TECH) Project in Northern Australia. High-grade nickel laterite ore will be imported from nearby New Caledonia, GM said.

GM already has binding agreements securing all battery raw material supporting its goal of 1 mi…

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BMW M2 footprint, power grow for 2023

The rear-wheel-drive M2, one of the most celebrated and revered nameplates in BMW's lineup, is getting a bigger footprint and power boost to enhance its driving dynamics.

The second-generation car, redesigned and reengineered for 2023, will be powered by a turbo inline six-cylinder engine with 453 hp, up 48 hp. Transmission choices are a standard six-speed manual gearbox or eight-speed automatic.

The latest M2 is 180.3 inches long, 74.3 inches wide and 55.2 inches tall, making it 4.1 inches longer, 1.3 inches wider and 0.3 inch lower than the outgoing version.

BMW says the M2's 108.1-inch wheelbase is a critical factor in its agility. The wheelbase is 4.3 inches shorter than that of the BMW M4 coupe but 2.1 inches longer than the previous M2, helping to enhance front and rear legroom.

BMW said track width has increased by 1.5 inches, to 63.7 inches, in the front and 0.16 inch, to 63.2 inches, in the rear, matching the M4.

Notable exterior…

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Hyundai, Kia supplier in Alabama fined for child labor violations

NEW YORK -- Authorities found children as young as 13 working at a Korean-operated supplier to automakers Hyundai Motor Co. and affiliate Kia Corp., and have fined the company and a labor recruiter, the U.S. Department of Labor and the Alabama Department of Labor said Tuesday.

In August, authorities accused Alexander City, Ala.-based SL Alabama in federal court of violating child labor laws.

Regulators did not accuse Hyundai and Kia of wrongdoing in the case.

The action against SL Alabama, which supplies lights and mirrors for Hyundai and Kia assembly plants in the U.S., came following a July Reuters article that documented child labor practices at another auto parts supplier in the state, Hyundai-owned Smart Alabama LLC.

The U.S. Department of Labor said in a release that workers aged 13-15 were found at the SL Alabama plant and said it had fined the company, a unit of Korea's SL Corp., around $30,000. SL Alabama agreed to implement new monitorin…

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DAILY DRIVE PODCAST: October 11, 2022

Honda makes a massive battery investment in Ohio. A look at GM’s latest effort to connect EVs with the power grid. Nissan takes a bath to get out of Russia. Plus, a conversation with the CEO of Amprius and the head of its new investment partner about the battery company’s ambitious plans and what makes its technology unique.

How do I subscribe?

Can't wait to hear the next episode of "Daily Drive"? Subscribe through a podcast app to receive episodes days in advance. If you don't have a podcast app already, here are some options. 

iPhone / iPad

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Android

“Daily Drive” is available on the Google Play store. Click here to subscribe to "Daily Drive"

Spotify

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Tesla crushes U.S. competition in Q3 luxury deliveries

For more than a decade, Germany dominated the U.S. luxury sales Grand Prix. But it's 2022, and American luxury is back.

Texas' Tesla Inc. has entered the final quarter with a mile-long U.S. sales lead, leaving former premium segment champions BMW and Mercedes-Benz squabbling over second place.

While Tesla does not break out sales by market, the Automotive News Research & Data Center estimates Tesla delivered 114,000 cars and crossovers in the third quarter, rocketing 47 percent higher from a year earlier.

So far this year, the EV maker has a 112,050-vehicle sales lead over No. 2 BMW.

Overall, premium-brand sales tallied 539,807 cars and light trucks in the third quarter, up 7.1 percent while the broader industry's deliveries flatlined.

The lift in quarterly sales comes as luxury vehicle supply improves.

As of Sept. 26, the average dealer days' supply for luxury brands in the U.S. was 47, slightly higher than the 44 days' supply …

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