Category: Industry

By on January 27, 2016

 

That happy couple at the car dealership, back by popular demand...

That happy couple at the car dealership, back by popular demand.

Since we last reported on the Consumer Financial Protection Bureau (CFPB) and its controversial crusade to uncover racial discrimination by car dealers on interest rate markup on automobile loans, the agency has ordered over $100 million in fines and settlements against banks that some have deemed extortion. This has infuriated lenders and car dealers, and has frustrated lawmakers on both sides of the aisle.

The tale continued last week as the House Committee on Financial Services revealed that their work on this case now includes trying to get the CFPB and Department of Justice to agree on that age-old problem on how to get white car buyers to admit that they are actually white.

Let us review this investigation, which recently prompted the House committee to publish a report about the CFPB probe, titled “Unsafe at Any Bureaucracy: CFPB Junk Science and Indirect Auto Lending.

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By on January 26, 2016

 

On Wednesday, Fiat Chrysler Automobiles CEO Sergio Marchionne will update investors on his long-term plans and fourth-quarter profits — namely, how many Jeeps it sold — during his scheduled earnings conference call.

It’s widely expected that Sergio will address the near-certainty that Jeep will build a pickup based on the Wrangler, as well as the future for the Jeep Compass that’ll likely survive from the Patriot/Compass twin billing, and Jeep’s potential to keep afloat fledgling FCA brands such as Maserati and Alfa Romeo.

Analysts say FCA’s ambitious target of $5 billion profit by 2018 would be almost unattainable at this point.

“‘Ambitious’ is not really an adequate word to describe it, ‘fantasyland’ might be more appropriate,” Bernstein’s Max Warburton told Automotive News.

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By on January 26, 2016

vw tsi tdi

Perhaps you heard. Volkswagen ran into a little trouble with their previously acclaimed TDI diesel engines.

No matter.

Volkswagen’s recently introduced 1.8-liter turbocharged four-cylinder gas-fired engine was already beginning to weaken the case for the optional 2-liter diesel. But now a new 1.4-liter turbo – yes, a wee little 1393 cc four pot – generates the same amount of torque as the 1.8T, has only 20 fewer ponies, revs with sweet abandon, and produces real-world fuel economy figures that challenge the TDI.

The pick of the Jetta range? You better believe it. More pertinently, there’s no better base engine in an affordable small car in 2016. Say goodbye to the TDI if you must, even temporarily, then welcome this TSI with wide open arms. Read More >

By on January 25, 2016

2015_Toyota_Sienna_SE-1

Minivan sales in America fell 8 percent to only 513,000 units in 2015, less than half the number of MPVs sold in the United States a decade ago. Yet the number of sales produced by the three biggest players, across four nameplates, are more than healthy enough to suggest Fiat Chrysler Automobiles is wise to reinvest in their Windsor, Ontario, plant and the all-new Pacifica van.

Of course, the degree of wisdom employed by FCA as the automaker goes about reinventing its van is up for debate. Switching from Town & Country to Pacifica? Leaving the Dodge Grand Caravan to lumber along in previous-gen form? Neglecting all-wheel-drive in a gaga-for-SUVs market? There are upsides and downsides to each of these decisions.

But FCA’s decision to stick with a segment from which Ford, General Motors, Hyundai and Mazda fled is a wise one. The minivan market is much, much smaller than it was a decade ago. But if half a million people in America want to buy a minivan every year, the automakers which historically controlled the sector will want to own as large a chunk of that market as possible. Read More >

By on January 25, 2016

The big Blue Oval is setting in the Land of the Rising Sun.

That, Volkswagen’s labor boss doesn’t like what he hears, Detroit’s big show and Kia’s big plans for the Rio … after the break! Read More >

By on January 23, 2016

Signing ceremony for VW’s Foshan plant in China. Picture courtesy Volkswagen AG

Volkswagen’s chief in China says they’re probably not retaking the crown from General Motors there anytime soon.

That, Apple’s lead car guy is gone, Takata’s in trouble and more … after the break!

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By on January 22, 2016

Many staffers and managers within Volkswagen’s engine-development department knew about Volkswagen’s illegal emissions-cheating “defeat device,” including a whistleblower who told other executives, German newspaper Sueddeutsche Zeitung reported (via Reuters).

The report said that there was a “desperation” among engineers tasked with creating a U.S.-emissions compliant diesel engine. Rather than going to the executive board with a failed engine, workers developed the cheat system to avoid repercussions from higher-ups.

The report also indicates that Volkswagen alone — not alongside auto supplier Bosch — created the defeat device.

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By on January 22, 2016

Volkswagen to European diesel owners: “Why you mad?”

That, the mailman can’t deliver on the first lawsuit against GM, Caddies built in China and 51.3 million cars were recalled in 2015 … after the break!

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By on January 21, 2016

2015 Toyota Camry

The streak began in 2002 and remains unbroken. Yes, 2002, which began with the Patriots winning the Super Bowl and ended after George W. Bush’s GOP was strengthened during the first mid-term elections of his presidency.

The Toyota Camry was America’s best-selling car. And the Camry has topped the best-selling cars leaderboard every year since.

In 2015, the Camry’s lead over the second-ranked car grew to 66,000 units from 40,000 in 2014. As U.S. passenger car volume declined in a record-setting year for the auto industry, the Toyota Camry’s sales did not. As midsize car sales slid 2 percent, U.S. Camry volume increased to the highest level seen of America’s most popular car in seven years.

Threats to the Camry’s supremacy in 2016? They stand shoulder to shoulder with the Camry inside Toyota’s own showrooms. Read More >

By on January 20, 2016

General Motors CEO and Chairwoman Mary Barra defended Wednesday her company’s decision not to put airbags in some of its cars in international markets.

“In many of those places the technology is available and it’s a customer choice if they want it,” Barra said, according to the International Business Times. “There’s many cases where we are well above standards, but we also have to look at affordability otherwise you cut people out of even having the availability of transportation.”

Barra made the remarks in Davos, Switzerland, which was a response to a letter sent to her last year by consumer advocacy groups in the U.S. — including Consumer Reports — requesting the automaker standardize safety features in its cars worldwide.

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By on January 20, 2016

At a one-day workshop Tuesday sponsored by the Federal Trade Commission to discuss the future of automobile dealers in the U.S., executives from General Motors and Tesla jabbed at each other over electric car sales.

GM CEO and Chairwoman Mary Barra touted the new Chevrolet Bolt as being one of the few all-electric cars that could be purchased in all states.

Later, at a direct-sale discussion, a lawyer for Tesla chided Barra by saying that it was GM’s persistence in shaping dealer law nearly a century ago that has forced Tesla out of six states including Michigan and Texas.

“Because they voluntarily chose generations ago to use a certain business model, (GM thinks) everyone that comes after should be required as a matter of law to use the same model,” Tesla lawyer Todd Maron said Tuesday. Read More >

By on January 19, 2016

Buick Avista NAIAS

Last week, Opel teased its upcoming GT Concept by saying: “You will see Opel with a fresh pair of eyes.”

That’s just lovely.

But let’s take a step back, look at General Motors’ Alpha platform with a fresh pair of eyes and wonder aloud together: Is it all Alpha from here on out?

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By on January 19, 2016

Former BMW Group chassis manager Hinrich Woebcken will head Volkswagen in North America, the automaker announced Tuesday. Woebcken will take over April 1.

Woebcken takes over the position from former Skoda chief Winfried Vahland, who was tabbed for the new position last year, but resigned three weeks later.

Volkswagen of America President and CEO Michael Horn will report to Woebcken, according to a statement from the automaker, but it’s unclear what Horn’s duties will be under the new North American chief.  Read More >

By on January 19, 2016

Volkswagen just tabbed a former FBI director to be the highest paid traffic cop in the universe.

That, Renault is only “improving” its emissions, GM’s big bet on ride sharing and the world’s biggest auto supplier says diesel isn’t dead … after the break!

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By on January 18, 2016

Investors say Volkswagen should have told the world they were cheating earlier because then they could have bought more Apple stock.

That, Mercedes-Benz prices new E-Class in Europe, BMW’s bigger i3 battery and Jeep soars in Europe … after the break!

Read More >

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