FYI: Discover the latest intel on Stellantis’s struggle with falling sales, Tesla’s tariff troubles in Europe, BMW’s major recall for fire risk, and Waymo’s significant rider growth in this informative roundup.

Wednesday Automotive News: Stellantis Troubles, Tesla Tariffs, BMW Recall, and Waymo’s Success

By Donald Smith, Editor of Automotive.fyi

Good morning! Today is Wednesday, August 21, 2024. Here’s your daily dive into the most pressing automotive news from around the globe.

Stellantis Faces Declining Sales and Executive Exodus

Stellantis is encountering a rough patch despite commendable 2023 sales and profits worldwide. The U.S. division is particularly suffering with a stark 30% drop in sales for key brands like Jeep. This downturn has shareholders close to legal action against the automaker. CEO Carlos Tavares is on a mission to Detroit to revamp the company’s fortunes.

The Inside Story:

• Inventory Woes: Overproduction against weakening demand has led to inventory issues.
• Executive Departures: Several top executives have recently exited, indicative of internal discontent.
• Union Tensions: Potential shift cuts at the Warren Truck Assembly Plant have sparked strike threats from the United Auto Workers union.

Expert Insight:

John McElroy, host of "Autoline After Hours," remarked, “Things are starting to fall apart at Stellantis.” He speculated that inventory decisions may have been politically driven, with disagreements on production levels arising from corporate locations in Paris and Auburn Hills.

Tavares plans an emergency visit to the U.S., a personal step to address these deep-seated issues. The CEO’s commitment is crucial as North America’s performance is pivotal for the whole group’s financial health.

Tesla Faces 9% Tariff on Chinese-Made EVs in Europe

Governments worldwide are clamping down on Chinese-made electric vehicles (EVs) due to hefty subsidies that could be skewing competition. The European Union has introduced a new 9% tariff on Tesla vehicles manufactured in China, a significant move expected to affect the company’s market.

Key Details:

• Reduced Tariff: Originally proposed tariffs have been halved, with Tesla facing a 9% duty.
• Broader Impact: Other manufacturers like SAIC Motor, Geely Automobile, and BYD will see even higher tariffs, indicating a closer scrutinization of subsidies from Beijing.
• Market Reaction: The industry is keenly observing China’s potential counter-moves, which might affect export costs for vehicles from Europe or the U.S.

Tesla’s smaller tariffs reflect lower subsidies from China, compared to domestic brands. This strategic differentiation by the EU may cushion the blow for Tesla but emphasizes the larger regulatory battles in the EV landscape.

BMW Recalls 720,000 SUVs Over Fire Risks

BMW has announced a substantial recall affecting over 720,000 vehicles due to a faulty connector in the water pump, raising fire risks.

Impacted Models:

• Includes cars from 2012-2018: Z4 convertible, 2, 3, 4, and 5 Series cars, and X1, X3, X4, and X5 SUVs.
• Technical Issue: Water leaks through a crankcase ventilation system seal can cause short circuits, potentially sparking engine fires.

Resolution:

BMW will begin notifying affected owners in October. Dealerships will inspect, and if necessary, replace faulty components and install shields to prevent future fluid leaks.

Waymo Doubles Ridership Amidst Self-driving Controversy

Despite ongoing debates and safety concerns around self-driving technology, Waymo has successfully doubled its ridership in just three months. The Alphabet-backed service is now attracting over 100,000 weekly riders across Arizona and California.

Expansion Highlights:

• Fleet Size: Operating with approximately 700 vehicles.
• Service Areas: Open access in San Francisco and expanding presence in the Phoenix metropolitan area and parts of Los Angeles.
• Growth Strategy: Focused on cost optimization and strategic expansion, as stated by Waymo’s Chief Product Officer Saswat Panigrahi.

This growth underscores the increasing acceptance of autonomous taxis, setting a competitive stage against rivals like GM-backed Cruise and startups like Zoox.

For more insights and updates, reach out to us at tips@automotive.fyi, or follow us on Twitter @automotivefyi.

Donald Smith, Editor of Automotive.fyi
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