Category: Industry

By on September 14, 2015

porsche scion

Only seven years removed from selling more than 100,000 cars in the United States, Scion’s current woes are more easily understood by looking at the brands which now outsell Toyota’s “youth” brand.

One such Scion-besting automaker: Porsche.

Rewind just one year and Scion, through the first eight months of 2014, was outselling Porsche by 10,000 units. Yet in the first eight months of 2015, Scion only outsold Porsche three times — in February, March, and May — and trails Porsche by nearly 2,200 sales heading into September.

Porsche is certainly not a Scion rival. Even the FR-S, Scion’s most costly car, costs only half as much as Porsche’s least expensive car, a basic, un-optioned Boxster. (Is there even such a thing?)

But the change in order speaks volumes about Porsche’s steady climb to record highs and the fall of Scion, the latter of which saw its share of the U.S. market fall by 73 percent, from 1.04 percent in 2006 to 0.28 percent in 2015. Read More >

By on September 10, 2015

V2V Intersection

The Alliance of Automobile Manufacturers on Thursday sent a letter to the heads of the Federal Communications Commission, U.S. Department of Transportation and U.S. Department of Commerce, urging the groups to keep dedicated a frequency spectrum for future car communication systems.

The spectrum, which is between 5.850 GHz and 5.925 GHz, was allotted to automakers for car-to-car communication and road-to-car communication. Telecommunications and Wi-Fi industry officials have asked to share the spectrum.

“Um, no,” in the nicest possible way, from the Alliance:

We are committed to finding the best path forward to protect the development and deployment of advanced automotive safety systems while also considering the need for additional unlicensed spectrum to meet the increasing demand for wireless broadband Internet services.

Read More >

By on September 10, 2015

TTAC-2014_Ram-EcoDiesel-front (1)

This has not been a banner summer for Fiat Chrysler Automobiles. In the past 90 days, FCA has recalled nearly 4 million cars and trucks for various issues including hackable cars, volatile fuel tanks, faulty airbags and now, in some of its Ram trucks, airbags with minds of their own.

In a statement Thursday, FCA said it was recalling more than 1 million pickups for a faulty steering wheel wiring harness that could rub against a spring and deploy the driver’s side airbag. The company said it was aware of two injuries related to the airbag deployment. Ram trucks — all models — made between 2012-2014 are affected by the recall. More than 235,000 trucks in Canada will be recalled as well.

In addition, FCA is recalling roughly 350,000 trucks for faulty welds and non-compliant side-curtain airbags.

Read More >

By on September 9, 2015

2015 Honda Odyssey Bothwell PEI

We’re kidding. Yes, Odyssey sales were falling. Then we used our own money to pay for a new 2015 Honda Odyssey. Forthwith, Odyssey sales increased.

You know better than to connect the two, of course. Post hoc ergo propter hoc, and all that. But I can dream about the power of GoodCarBadCar.net and the sway of a single Jalopnik-recommended article on our Kinja page.

In July and August, 26,274 Americans registered new Odysseys, 12 percent more than in the same period one year ago. This is a strong end-of-lifecycle follow-up to the Odyssey’s 14 percent plunge in the 2014 calendar year and a 1 percent drop in the first half of 2015. Yet even to the sales-stats-obsessed founder of GCBC, the U.S. sales story is secondary, if only in this instance.

As of June 2015, we have a minivan, and I’m too busy loading ten-foot-long 2x4s in the back of my people carrier to care about the Odyssey’s best-selling status or the reasons for the uptick. Read More >

By on September 8, 2015

2016 Cadillac ELR red

As the U.S. auto industry technically lost a small amount of new vehicle sales volume in August 2015, sales of the unappealing Cadillac ELR plunged 77 percent to the car’s lowest monthly total yet.

In fact, August 2015’s collapse of the Volt-based ELR’s sales comes precisely one year after the ELR reached its best-ever monthly volume.

196 ELRs were sold in America in August 2014, a figure which decreased by 85 units the very next month and by 151 units a year later. Read More >

By on September 6, 2015

 

Speaking at the Formula One Italian Grand Prix this weekend, Fiat Chrysler Automobiles CEO Sergio Marchionne told Reuters that a merger with General Motors was at the top of his list.

“That discussion remains a high priority for FCA,” Marchionne told Reuters. “We consider it to be the best possible strategic alternative for us and for them. General Motors does remain the ideal partner for us and we represent a not easily replaceable alternative for them.”

(Emphasis mine. But what are the other “strategic alternatives?”)

Read More >

By on September 5, 2015

 

Reports out of Germany indicate that ousted chairman and current majority owner of Volkswagen’s parent group, Ferdinand Piech, may have tampered with the board nomination to replace him.

Piech may have prevented current VW CEO Martin Winterkorn from becoming chairman after the two’s public feud ultimately resulted with Piech’s abrupt resignation in April, Reuters reported.

If true, the backroom dealings would indicate that while Piech may not be overseeing VW anymore, he still wields significant influence on its operations and leadership.

Read More >

By on September 4, 2015

2015 Ford Ranger

What if an automobile manufacturer could develop a new product, bring it to market, never substantially update the product, and continue to sell that product at a similar pace year after year? That would be impressive. But Ford could not manage to execute that four-pronged action with the Ranger.

Yes, Ford originally developed a Ranger, brought the Ranger to the North American market, and didn’t bother to truly update the Ranger. The consistent sales pace aspect? Nope, didn’t happen.

U.S. Ranger sales declined in 11 consecutive years at the end of its tenure, from 2000 to 2010. The 28-percent year-over-year increase to 70,832 units in 2011 occurred as Ford cleared out the final Rangers at ridiculously low prices and buyers of small trucks who wanted a genuinely small truck picked up the Rangers that remained. Read More >

By on September 3, 2015

 

Automakers may try to negotiate a massive health care co-op with the United Auto Workers — similar to the one it has with its retirees — and potentially change private health care in the U.S., Bloomberg is reporting.

At issue are the roughly 300,000 workers and beneficiaries, and 750,000 retirees and their families who rely on the UAW for health care.

The pool of more than one million workers and their families could give the Big Three unprecedented negotiating power with U.S. hospitals and clinics.

Read More >

By on September 2, 2015

000-2014-maserati-ghibli

According to a report by Automotive News, Maserati North America may have falsified nearly half their sales in December 2014 and an undisclosed amount for other months through a demonstration car scheme that rewarded dealers for being complicit in the scheme.

A lawsuit filed by Recovery Racing, owner of multiple Maserati stores in the northeastern U.S., claims a program aimed at falsely boosting sales numbers financially disadvantaged its business because of its reluctance to participate.

Read More >

By on September 2, 2015

 

Hyundai’s U.S. sales chief Bob Pradzinski left abruptly Tuesday and was promptly replaced by Nissan’s U.S. sales chief — and former Hyundai exec — Derrick Hatami, Automotive News is reporting.

Separately, Nissan announced that Chief Marketing Officer Dan Mohnke would assume lead sales responsibilities after Hatami’s departure.

Pradzinski’s sudden departure may have triggered the moves, but it’s not unusual for Hyundai, according to the report. Pradzinski assumed his No. 2 role after former CEO John Krafcik abruptly left Hyundai and became president of TrueCar.

Read More >

By on September 2, 2015

Martin Winterkorn in Shanghai - Picture courtesy Bertel Schmitt

Volkswagen will extend its contract with CEO Martin Winterkorn through 2018, Automotive News is reporting, but that two-year deal may make him too old to succeed the man he ousted, Ferdinand Piech, who left the company last year after clashing with Winterkorn. Read More >

By on September 1, 2015

Jeep Wranglers Coming Down The Line In Toledo

Automotive News is reporting that Jeep will produce a Wrangler-based pickup at its Toledo, Ohio plant and shift production of its Cherokee to another site.

The details were reported by the outlet as part of Fiat Chrysler Automobiles’ ongoing negotiations with the United Auto Workers union.

Officials from FCA didn’t comment on the report.  Read More >

By on September 1, 2015

 

Mergers don’t excite me.

I’m not excited about the prospect of walking in to my neighborhood Jeep/Chevy/Buick/Dodge/GMC superstore and thumbing through the soul-less car stocks like a weekend trip to Costco.

Bark makes a good business case that Mazda and Subaru could help each other in worldwide sales, and brings up some interesting short-term mashups: rotary engines with all-wheel drive, a boxer in a Miata, et al. All those things sound fun like monster trucks and cans of Pabst on a Friday night.

But in reality, despite repeated calls from automakers that consolidation will mean the car business can stay “in business,” mergers don’t make better products — but they try to make shareholders happy, if they can even do that (see: Suzuki-Volkswagen, page 231 of your textbook). Shared R&D is often synonymous with “badge engineering” (Cimarron) and when it’s not, well, just look at Saab.

If history has taught us anything, mergers simply leave car people left out in the cold.  Read More >

By on August 31, 2015

2015-Subaru-WRX-STI-profile

After two consecutive years of growth, including record-setting U.S. sales achievements in 2014, what does the Subaru WRX do for an encore performance?

An all-time monthly record of 3,716 WRX/STI sales in July 2015 starts the second-half off strongly after a first-half in which sales of Subaru’s rally-inspired nameplate jumped ahead of last year’s sales pace by 14 percent.

When setting a brand-wide sales record in 2014, Subaru’s WRX/STI-specific record of 25,492 units accounted for 5 percent of the brand’s total U.S. sales volume. Read More >

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