Dealership advisory firm Presidio Group has painted a very bleak picture for its clients. With analysts predicting a downturn in auto sales, the company recommends dealers establish a robust 20-year plan that will enable them to perform in the new climate or get out of the business entirely.

Brodie Cobb, founder of Presidio Group, cites a glut of studies claiming dealerships will struggle as manufacturers shift into mobility companies and alternative modes of transportation are more broadly encouraged.

“We’re not particularly pleased that the world is changing the way it is. We would rather have it stay the same, because owning dealerships is a very nice return and profitable business that we enjoy very much,” Cobb told Automotive News in an interview. “So when we talk about this, it hurts us, too. We, too, need to understand the future, form a plan and not just put our head in the sand and hope it goes away.” (Read More…)

Volkswagen AG and Ford Motor Co. continue to become more chummy with each passing day. They may even be on the cusp of sittin’ in a tree, K-I-S-S-I-N-G.

After signing a Memorandum of Understanding in June, executives are now hinting at widespread collaboration. Ford wants help in Europe and Latin America, areas awash in a sea of red. Volkswagen wants a piece of Ford’s self-driving technology, while the pair would work together on electric vehicles, according to recent reports. It’s worth noting that Ford, which has proven more open in discussing the matter, previously said nothing would be off the table if the two joined forces.

The most recent update concerns VW’s proposed investment in Ford’s self-driving partner, Argo AI. While both companies are dead set on a future of “electro mobility,” both fall short in critical areas.  (Read More…)

Subaru is recalling nearly 229,000 late-model vehicles over an issue that could result in vehicles unexpectedly stalling. While this is a very different issue from October’s recall notice, which dealt with roughly 400,000 vehicles globally, both could leave you stranded on the side of the road.

The new recall involves software gremlins inside the 2018 Outback and Legacy. According to the NHTSA’s report, the low-fuel warning light may not issue a warning at the appropriate fuel level. Likewise, the anticipated range may overestimate the number of miles you have left before needing to refuel. This could elevate the risk of a crash in certain situations, but the most likely outcome is the vehicle sputtering before you’ve had the chance to gas up.  (Read More…)

Mazda is bringing its new Skyactiv-X engine, hyped as a major leap forward in internal combustion engine technology, to the Los Angeles Auto Show and the end of the month. Wedged inside the new Mazda 3 sedan and hatchback, the powerplant uses “Spark Controlled Compression Ignition,” which is said to combine the efficiency of a diesel unit with the performance of a gasoline mill. The manufacturer claims fuel economy improvements of more than 30 percent over a standard gasoline engine of the same displacement.

Assuming Mazda meets that mark, it’s a petty impressive feat. The 2.0-liter four-cylinder will debut along with the 3’s new platform in L.A. at the end of the month.  (Read More…)

Toyota has been exceptionally vocal about its desire to spice up the brand and, for the most part, it has delivered. Expressive, sometimes polarizing, designs have begun populating its lineup as company president Akio Toyoda endlessly talks up the merit of sporting vehicles. While other chief executives focus solely on promoting mobility, he’s discussing the importance of building fun-to-drive cars.

The company’s motorsports group, Gazoo Racing (GR), has even started cranking out tuned versions of the brand’s road cars. However, none of them have made it to North America — nor will they. Despite all of Toyoda’s seemingly earnest talk of performance models, the United States hasn’t seen it manifest into anything tangible.

Considering Toyota also decided not to offer GR models in the U.S., and with cost-cutting measures making the 86 coupe a potential candidate for discontinuation, Akio’s grand vision doesn’t look particularly robust in the West.  (Read More…)

Last month, a motorcyclist was injured by one of Waymo’s self-driving Chrysler Pacificas. According to the accident report, a car in the left lane attempted to merge into the same middle lane as the Pacifica test platform, which was operating in autonomous mode. The safety driver then “took manual control of the Pacifica out of an abundance of caution, disengaged from self-driving mode, and began changing lanes into [the outside lane].”

Considering the AV wasn’t traveling above 25 mph, it’s a little curious the driver took evasive action, unless the second car attempted to merge directly into it. Regardless, the Pacifica’s lane change placed it into direct contact with a motorcycle that was moving slightly faster. Waymo said that, had the autonomous system been left in play, the vehicle would have assuredly avoided the accident.  (Read More…)

Roughly a year ago, Wells Fargo got itself into hot water over shady business practices relating to widespread auto insurance and mortgage lending abuse. After a lengthy investigation, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency eventually suggested Well Fargo pay $1 billion to “resolve” the governmental probes. President Donald Trump then said federal agencies needed to go after the bank hard to set an example. The agencies came back with a consent order saying it was time to pay up.

Despite the insurance issue affecting an estimated 800,000 customers over a four-year period, Wells Fargo seemed able to recover from the scandal and move past it. However, new allegations claim the bank’s leadership was aware customers were probably being overcharged several years before it finally cancelled the program.  (Read More…)

Hyundai is bestowing upon the Elantra Sport the same visual refresh that will modernize its less-aggressive twin. Like the standard Elantra sedan, the Sport will receive a new hood, triangular headlamps, fascias, and updated taillights for 2019.

In fact, the only apparent visual difference between the two is that the Sport has unique exhaust tips and a honeycomb mesh grille while the plain-jane sedan uses chromed slats. That could change, however, as what we’re actually seeing is the Korean equivalent of the car — the Avante. But there’s little reason for Hyundai to make any major alterations for the U.S. market; the Elantra Sport might even keep that bedazzled bar running between the headlights and will assuredly have a set of unique wheels to further differentiate itself.  (Read More…)

Dodge recently launched a 30-second commercial as part of Fiat Chrysler’s new “Big Finish” advertising campaign. While a competent bit of marketing, it falls into the trap of deploying holiday marketing immediately after Halloween.

On the surface, it has everything you’d want from a Christmas-themed car ad. Professional wrestler, former NFL player, and American icon Bill Goldberg makes an appearance as Santa while dwarves install a 6.2-liter Hemi into his sleigh. The Butt Rock comes on strong, accented by angle grinders and relentless engine revving until Santa’s new ride is completed. They even put antlers on the Hellcat logo. It’s stupid and awesome but also way too early for this.

We’re willing to forgive FCA. The automaker has been pretty good about not making commercials that make us strangle anyone of late. Frankly, that’s more than we can say about some of the other domestic nameplates.  (Read More…)

While electric vehicles get better every year, they remain beholden to battery technology. This results in a few inherent shortcomings – the most noteworthy being limited range and extended downtime while charging. While this has helped throw a wet blanket EV adoption, it isn’t the technology’s only fault. Modern car batteries are also dependent on relatively rare metals that are both morally contentious and prohibitively expensive to procure.

Cobalt, mined almost exclusively in the Democratic Republic of Congo, and often by children, is likely the worst offender. Prices skyrocketed after EV manufacturing went mainstream, and analysts have long predicted a shortage that could severely impact the long-term popularity of zero-emission vehicles. Fortunately, a new way to build batteries may be on the horizon, though this particular application could create as many issues as it solves – since it involves removing an element that’s paramount to a battery’s long-term stability.  (Read More…)

The training center embezzlement scandal currently rocking the United Auto Workers began with the indictment of a former Fiat Chrysler labor chief who offered kickbacks to select union officials in exchange for favorable treatment. Alphons Iacobelli, the ex-FCA executive in question, was sentenced to five years in federal prison last August but spent nearly 10 months helping the FBI’s investigation into unionized corruption, resulting in additional indictments.

Federal prosecutors have secured convictions of seven people linked to the conspiracy at this point, claiming FCA executives provided gifts or covert cash payments through the jointly operated UAW-Chrysler National Training Center in an effort to influence collective bargaining. It became such a problem that several union officials now claim they engaged in illicit activities because they were fearful of bucking the trend, losing their six-figure salaries, and being forced back onto factory floors — you know, like the people they were supposed to be representing.  (Read More…)

BMW previously confirmed that the 3 Series would abandon the manual transmission for the U.S. market, leaving many enthusiasts livid. Then there was talk that the M3 might abandon rear-wheel drive entirely, as the new car’s eight-speed gearbox was designed to work with the modern xDrive system.

However, there may still be hope for a manual option. The brand has allegedly not made up its mind on the matter, at least as far as the M3 is concerned. Still, it remains a pretty slim prospect, as BMW has admitted that manual sales are on a rapid decline and don’t really make it a lot of money.  (Read More…)

Cadillac recently made the choice to suspend its vehicle subscription service, claiming the operation hit some costly roadblocks. That’s been our beef with most subscription programs as well, only on the consumer side of the coin. Customers typically end up paying significantly more for access to a fleet of vehicles that, individually, would have been much cheaper to simply buy or lease. Still, the intended draw isn’t saving money, it’s convenience — most subscription services allow customers to swap between select models on the fly, baking in both insurance and maintenance fees.

While these subscription services have been limited to premium nameplates thus far, Toyota wants to try its hand and see how things play out for a mainstream manufacturer. (Read More…)

Assuming you’re the sort of parent who’s willing and able to buy your child their first vehicle, you’ve probably made safety your top priority. While you could purchase a new vehicle with all the latest self-preservation tech, teens have a habit of scratching up cars. If you buy them an old clunker, they’ll learn a valuable lesson about the importance of auto maintenance but won’t be as protected when they crash into something — which they’re statistically more likely to do.

The Insurance Institute for Highway Safety recently updated its list of recommended vehicles for teens, promoting the “bigger is better” mentality. It claims an older, larger used vehicle is often a safer choice when compared to a newer small vehicle that costs roughly the same. While the institute’s suggestion makes sense, it’s also one step removed from recommending putting teenagers in armored personnel carriers.  (Read More…)

Faraday Future’s path to glory has been complicated to say the least. A series of ludicrously ambitious moves have been plighted with failure, followed by renewed hopes that were ultimately dashed. Incredibly, the aspiring automaker still exists and intends to begin production of its first electric vehicle once its money troubles are over.

Unfortunately, the company is currently engaged in a bitter legal battle with its biggest investor, China’s Evergrande Group, after a planned $2 billion investment went south. The reasons as to why are as foggy as the memory of a heavy drinker but Faraday wanted to trudge onward anyway. Initially, that seemed impossible — especially considering Evergrande held the ability to block any additional investments into the company. However, an interim ruling by a Hong Kong arbitration court has granted Faraday relief to seek financing without approval.  (Read More…)