Volkswagen Group renews its contract with SAIC Motor until 2040, and the electric version of Land Rover undergoes extreme tests in the United Arab Emirates | Overseas Daily
"Top 3 News"
Tesla Announces API Pricing, Requiring $60 Million Annually to Run Third-Party Apps
Key Points:
Tesla recently announced the API pricing for its third-party applications, which has attracted widespread attention from the developer community. According to Electrek, a third-party Tesla app developer stated that according to Tesla's new pricing model, his app would need to pay up to $60 million in API fees annually. This figure is based on an estimate that approximately 400,000 Tesla owners are currently using the app.
Previously, Tesla's third-party applications operated for many years without an official API. Last year, Tesla finally released the official API documentation, and developers originally expected this to be the first step in establishing a healthy Tesla third-party application ecosystem. However, Tesla's recently announced Fleet API usage pricing has shocked many app developers. Tesla provides a cost estimation calculator based on different signals, commands, and data requirements, but for many developers, this is not a sustainable pricing environment.
Fortunately, the developer of the Tessie app stated that he can avoid the high fees by giving up the API and instead using the method of "direct vehicle communication via IP and BLE". Additionally, Tesla has recently been launching its own fleet management function, which may be the underlying reason for this move, undoubtedly pouring cold water on third-party applications. Tyler Corsair, the founder of the Tesla Third-Party Program, also mentioned that the new API cost would be 7.5 times the monthly income of his application. According to other developers, their situation is even more unfavorable.
Tesla API (Source: Electrek)
Opinions:
Tesla's recently announced API pricing undoubtedly brings huge economic pressure to third-party app developers. From a business perspective, Tesla may hope to encourage users to use its own fleet management function by increasing the cost of API usage, thereby enhancing its control over the Tesla ecosystem. However, this approach may have a negative impact on third-party app developers and may even lead to the forced exit of some valuable third-party applications from the market. In the long run, this strategy may damage Tesla's brand image as it limits innovation and competition and may be seen as a hostile act towards third-party developers.
As an innovative leader, Tesla should encourage and support third-party developers instead of restricting them with high fees. Such an approach may increase the company's income in the short term, but in the long term, it may weaken Tesla's image in the eyes of users and reduce user loyalty to the Tesla ecosystem. In addition, this approach may also prompt third-party developers to seek alternative solutions, such as the "direct vehicle communication via IP and BLE" mentioned by the Tessie app developer. This may bypass Tesla's API restrictions but may also bring security and compatibility issues. Therefore, when formulating API pricing policies, Tesla should consider these potential long-term effects and seek a more balanced and sustainable solution.
Land Rover Electric Version Undergoes Extreme Environment Testing in the UAE
Key Points:
The Land Rover electric prototype is currently undergoing the most intensive testing in one of the world's harshest climates - the United Arab Emirates. As part of the arduous development process of the first fully electric Land Rover model, the UAE has become the testing ground for desert evaluations. The vehicle's performance and efficiency are severely challenged here to ensure that the entire powertrain can reliably control the temperature and support long-term operation and optimal range. According to the British automaker, the thermal test performance of the Land Rover electric vehicle in the sand exceeds that of any Land Rover model. Even in continuous desert driving, it maintains excellent thermal performance. The performance of the Land Rover electric vehicle in hot climates is particularly outstanding as it needs to cool the cabin and optimize battery performance simultaneously. The additional challenge of driving on the sand requires controlling low-speed torque. Land Rover's specially developed traction control and thermal management systems work together to ensure that the power output is not affected. Tests show that in this climate, even if driving repeatedly on fine sand equivalent to a 100-meter uphill slope, the performance of the Land Rover electric vehicle can match that of internal combustion engine models and even surpass them in some cases, thanks to the introduction of new features. The Land Rover electric vehicle has a balanced weight distribution, and the advanced suspension system easily maintains control and stability on the sand, showing extreme composure. The uncompromising traction system provides instant torque, allowing for quick acceleration and sensitive response, providing a refined driving experience even when crossing diverse dune terrain. The new intelligent torque management system of the Land Rover electric vehicle directly assigns the wheel slip management task to each individual electric drive control unit, reducing the torque response time of each wheel from approximately 100 milliseconds to only 1 millisecond, providing better traction control and maintaining stability even when driving on fine sand. The Land Rover electric vehicle has performed exceptionally well in this important development stage. Preparations are still ongoing to perfect and create a model of Land Rover luxury, with customer reservations expected to be accepted in 2025.
Land Rover Range Rover (Source: Land Rover)
Opinions:
The performance of the Land Rover electric vehicle in the extreme environment testing in the UAE not only proves its reliability under harsh conditions but also shows the progress of electric vehicle technology in responding to complex terrain and climate challenges. This test result is a positive signal for the electric vehicle industry, indicating that electric vehicle models can not only provide a good driving experience in the urban environment but also show their potential in a wider range of application scenarios. The innovation of the intelligent torque management system and thermal management technology of the Land Rover electric vehicle is an important milestone in the development of electric vehicle technology. The application of these technologies not only improves the vehicle's performance under extreme conditions but also makes it possible to promote electric vehicles in wider areas. Especially in high-temperature environments such as deserts, the thermal management of batteries and motors is the key to ensuring vehicle performance and safety.
This test of the Land Rover electric vehicle also reflects the automaker's emphasis on comprehensive performance testing of electric vehicle models. Through testing under extreme conditions, manufacturers can better understand the challenges that vehicles may encounter in actual use and optimize the design and performance accordingly. This is crucial for increasing consumers' confidence in electric vehicles and promoting the growth of the electric vehicle market. With the global emphasis on reducing carbon emissions and responding to climate change, the electric vehicle market is experiencing rapid development. The test of the Land Rover electric vehicle in the UAE is not only a display of its technical strength but also a positive response to market trends. The Land Rover electric vehicle, which is expected to accept customer reservations in 2025, will provide consumers with more choices of high-end electric SUVs and may drive the entire industry towards a more environmentally friendly and sustainable direction.
Volkswagen Group and SAIC Group Extend Joint Venture Agreement until 2040
Key Points:
Volkswagen Group and SAIC Group recently announced that they have signed a joint venture contract extension agreement, extending their cooperation in Shanghai until 2040. This decision aims to provide certainty for the early planning of the rapid development stage of the Chinese automotive market and accelerate the transformation of the joint venture company SAIC Volkswagen in areas such as product portfolio, production, and carbon reduction. The common goal of both parties is to enable SAIC Volkswagen to achieve a market-leading position in the intelligent and fully connected electric vehicle era through the Volkswagen Passenger Cars and Audi brands. Volkswagen Group stated that the importance of cooperation with China for the group globally is self-evident.
By extending the long-term contract, Volkswagen Group emphasizes the importance of cooperation with China and plans to bring a new generation of electric vehicles to the market by 2026 to ensure the economic and technological forward-looking nature of the partnership. Volkswagen Group will follow the "In China, For China" strategy to accelerate the transformation of SAIC Volkswagen.
Wang Xiaqiu, Chairman of SAIC Group, stated that electrification and vehicle intelligence are the development trends of the automotive industry. SAIC Group, as the first automaker in China to sell more than one million vehicles in the electric field and overseas markets, is deepening its cooperation with Volkswagen Group. SAIC Volkswagen will focus on developing new intelligent electric vehicles to maintain its industry-leading position in the intelligent technology field. The goal of the joint venture is to achieve sustainable and stable sales growth through the "China Speed" and gain a market-leading position, contributing to the further positive development of the automotive industry both in China and abroad. According to the new agreement, both parties will accelerate the transformation of SAIC Volkswagen in the next few years, mainly focusing on three key areas: the expansion of the product offensive of new electric vehicle models, extended-range and plug-in hybrid models; the gradual optimization of the production network with an emphasis on efficiency and productivity; and the continuous promotion of the decarbonization plan with ambitious carbon reduction goals.
Volkswagen ID7 GTX (Source: ElectricCarsReport)
Opinions:
The extension of the joint venture agreement between Volkswagen Group and SAIC Group until 2040 is not only a recognition of the achievements of the past cooperation between the two sides but also an affirmation of the potential of the future Chinese automotive market. This decision reflects Volkswagen Group's long-term commitment to the Chinese market and its recognition of the growing influence of China in the global automotive industry. From a strategic perspective, this extension agreement is a crucial step for Volkswagen Group to maintain its competitiveness in the world's largest automotive market - China.
As the Chinese automotive market transitions towards electrification and intelligence, Volkswagen Group needs to closely cooperate with local partners to better understand market demands, quickly respond to market changes, and launch products that meet the tastes of Chinese consumers. Through cooperation with SAIC Group, Volkswagen Group can utilize SAIC Group's local market knowledge and manufacturing capabilities to accelerate its electrification process in the Chinese market. In addition, the extension of this joint venture agreement also shows Volkswagen Group's emphasis on sustainable development. With the global increasing attention to reducing carbon emissions and responding to climate change, Volkswagen Group, through cooperation with SAIC Group, has jointly set carbon reduction goals, which not only helps to enhance the brand image but also actively fulfills global environmental responsibilities. In general, the extension of the joint venture agreement between Volkswagen Group and SAIC Group is a win-win decision. It not only contributes to the in-depth development of Volkswagen Group in the Chinese market but also helps to enhance the status of SAIC Group in the global automotive industry. This cooperation will promote the joint efforts of both sides in technological innovation, market expansion, and environmental protection, contributing to the sustainable development of the global automotive industry.
"Big Events"
To Save Costs, Volkswagen May Terminate Its Electric Vehicle Direct Sales Strategy
Volkswagen Group recently announced that to save money and remain competitive, it may abandon its Tesla-inspired direct sales model for electric vehicles in key European markets. In a press release, Volkswagen stated that in the weak European automotive market, selling electric vehicles through a direct sales model and internal combustion engine vehicles through traditional retail channels simultaneously is too complex, and the speed at which consumers are purchasing electric vehicles is slow. Marco Schubert, the Volkswagen Group board member responsible for sales, said in a statement: "Given the challenging framework conditions, we will have to re-evaluate whether our current pure electric vehicle agency model provides the best customer experience." However, he also emphasized that direct sales remain a "long-term goal" for automakers.
Tesla's direct sales model bypasses traditional dealers and sells vehicles directly through its own store network and online channels, which has completely revolutionized the automotive sales method in Europe. Many traditional automakers are also striving to follow suit in the highly regulated automotive market. In Volkswagen's case, its electric vehicles can be purchased through dealers, who can obtain a fixed and relatively low profit margin without having to bear marketing costs or inventory costs. Possible retail reforms include the sales of Volkswagen brand vehicles as well as Audi, Skoda, and Volkswagen Commercial Vehicles in France, Germany, Poland, Spain, and the United Kingdom.
Volkswagen Europe (Source: Electrek)
Volkswagen introduced its electric vehicle direct sales model in 2020, and the review results are expected to be announced in March next year. However, Volkswagen's Cupra brand will continue to sell its electric vehicles under the direct sales model, as will all Volkswagen vehicles sold in Ireland and Sweden, regardless of the drive system. This change comes as the Volkswagen Group is undergoing a business restructuring to cut costs, with plans to close three factories in Germany - the first time in the company's 87-year history that it is closing factories in its home country. The plan includes cutting tens of thousands of jobs and reducing the salaries of the remaining employees by 10%.
Fiat E-Ducato Electric Van Officially Starts Production at Atessa Factory in Italy
Fiat Professional recently announced that its fully electric version of the FIAT Professional Ducato - E-Ducato has officially started production at the Atessa factory in Italy. This move marks an important step for Fiat in the field of commercial vehicle electrification. In Europe, FIAT Professional Ducato is known for its strong market presence. It is the first large van under the Stellantis Group, with a market share of 11.2%. In Italy, Ducato is the best-selling commercial vehicle and has long held the leading position in the light commercial vehicle (LCV) market. Especially in the large van segment, Ducato has a market share of up to 24% in Italy, further consolidating its position as a market leader. In France, Ducato ranks second and is the Stellantis Group's first large van. In Poland, Ducato also ranks second, while in Spain and Portugal, it occupies the third position in the segment.
Fiat E-Ducato Electric Van (Source: ElectricCarsReport)
In the recreational vehicle (RV) sector, Ducato is the absolute leader in Europe, with a 5-percentage-point increase in market share compared to last year. 70% of the leisure vehicles on European roads are based on the Ducato platform. Due to its excellent performance, Ducato was named the "Best Camper Base Vehicle of the Year 2024" by the readers of the German professional magazine "Promobil", which is the sixteenth consecutive time that Ducato has received this honor. Based on its traditional advantages, the new E-Ducato, as an innovative masterpiece, offers an uncompromising electric solution. It is completely designed in-house and equipped with a new 110-kilowatt second-generation battery, ensuring a first-class zero-emission experience with a range of up to 424 kilometers in the WLTP cycle. The E-Ducato combines advanced electric technology with the reliability, performance, and versatility of Ducato, providing an environmentally friendly solution for commercial vehicle fleets. The E-Ducato is designed for today's professional fields, with an impressive range, fast charging options, and a variety of configurations, making it adaptable to multiple industries from logistics to service industries. With the continuous growth in demand for zero-emission vehicles, the E-Ducato positions Fiat Professional at the forefront of the commercial vehicle electrification transformation. The Atessa production facility was established in 1979 as a joint venture between FIAT and PSA-Peugeot Citroën and began operations near Chieti, Italy in 1981. This iconic factory covers an area of over 1.2 million square meters and is