Category: Industry

By on December 14, 2017

Uber Otto

Uber Technologies Inc. received quite a bit of publicity when it purchased autonomous semi truck developer Otto in 2016. Still, it saw even more headlines when it became embroiled in a trade secrets lawsuit with Waymo. That case involved files obtained by Anthony Levandowski, former Google engineer and co-founder of the self-driving truck company, who was accused of selling confidential data to Uber (along with his business).

The bad news is that Uber now the subject of a federal investigation and knee-deep in the aforementioned litigation. But the good news is that it appears to have scored a really sweet deal on Otto.  Read More >

By on December 14, 2017

tesla model x, Image: Tesla Motors

American investment manager and short-seller extraordinaire Jim Chanos claims Tesla is “headed for a brick wall.” Having deemed the automaker as structurally unprofitable, Chanos said, “Three years ago, this company was supposed to be making money [today]. And now, it’s supposed to be making money by 2020. I’m guessing by 2019, we’ll hear about 2025.”

However, while Tesla has taken on massive amounts of debt to ensure its evolution as company, investors haven’t seemed to mind. Its stock price has climbed from $33 a share in 2013 to almost $380 in September of 2017. As a short-seller, Chanos says he’s lost money on the company in the past since the stock price never seems to go down, and that’s what he finds the most alarming.

“Nobody is buying Tesla stock based upon the current business,” he said. “It’s all based on the future and the hope for half-a-million to a million Model 3s per year.” Read More >

By on December 13, 2017

electrify-america-ev-charging-station, Electrify America

Compared to the rest of the United States, California is on the bleeding edge of government-appointed environmentalism. When the Trump administration suggested reexamining Obama-era fuel economy and emissions standards, The Golden State was the first to complain, saying it would not be adjusting its goals just because the rest of the country may. It also has pretty serious mandate on zero-emission vehicles — one that forces 15 percent of all new vehicles sold in the state to use zero-emission powertrains by 2025.

While California isn’t alone — nine other states have followed its lead since Trump took office — it is the keystone star on America’s flag pushing to maintain expand fuel regulations. Automakers have noticed and, despite previously having agreed with President Obama’s emission standards several years back, they’re launching a counter-offensive.

Arguing before a U.S. House panel, the Association of Global Automakers complained that California’s ZEV mandate threatens a single national standard for fuel economy. Read More >

By on December 12, 2017

2018 Chevrolet Bolt - Image: Chevrolet

You’ve decided to take the plunge. To lay down significant cash for a personal vehicle that burns no gasoline and isn’t a bicycle. Unlike the plethora of dino juice-sipping models competing for your attention, your choice of electric vehicles is still modest, albeit growing, and comes with a list of ownership concerns never mentioned around traditional cars.

Range, charging times, home connections, and the impact of temperature on the battery pack (and its longevity) are just some of the questions a salesman might be asked about. Pricing is easy.

This past fall, research firm Ipsos RDA Automotive sent secret shoppers into 141 EV-selling dealerships in the U.S., where the spies feigned interest in purchasing one of 11 fully electric models. The experience was a wildly mixed bag. It’s not entirely surprising, but in many showrooms dominated by gas-powered cars and SUVs, the sale the dealer employee attempted to close was not for the EV the secret shopper came in to buy.  Read More >

By on December 12, 2017

2017 Nissan Sentra NISMO – Image: Nissan USA

I often joke that not only are we all destined to buy a crossover in the near future, we’ll one day become crossovers. Oh, how the TTAC guys laugh…

Still, it’s hard to avoid the crossovers-are-replacing-cars narrative, as it isn’t some far-out theory — it’s a cold, hard reality. Crossover and SUV market share grows each year as buyers abandon traditional passenger cars in favor of a vehicle that does everything at least marginally.

That said, not every model faces the same rate of abandonment. Certain cars — through a hazy combination of performance, value, nameplate recognition, and other, more nebulous factors — haven’t yet been dropped off on the front steps of the orphanage by their once-loving guardians.

Let’s take a look at some surprisingly healthy performers in the non-premium, non-sports car class. Cars that aren’t declining in popularity, as this analysis isn’t about overall volume. Guess what? None of these vehicles are the Toyota Camry or Honda Accord, two models currently locked in a battle for midsize sedan supremacy (and worthy of their own singular coverage).

Hard to believe, we know, but there’s loyalty and desire to be found elsewhere. Read More >

By on December 12, 2017

[Image: Audi AG]

Like an overspending spouse whose partner has commanded they sell their toys to pay off debts, Volkswagen put all its options on the table earlier this year in a bid to raise some cash.

After mulling a sale of Ducati during the darkest days of Dieselgate, VW now plans to hang on to the brand. Recently taking action to curb costs and cut red tape, chief executive Rupert Stadler said the company is “gradually increasing our financial and organizational leeway.” Sounds like VW has found a few more coins amid the couch cushions.

Read More >

By on December 11, 2017

Ford badge emblem logo

While General Motors has become progressively more brazen in outlining its plans for the future, Ford has kept its cards a bit closer to the chest. We do know both companies have similar long-term goals, but Ford has been (rather wisely) preoccupied, adjusting its fleet to meet global demand and ensuring production flexibilities that should prevent it from being caught off guard by an industry turnaround.

It’s interesting because, a little over a year ago, former Ford CEO Mark Fields was promising a complete evolution of the automaker into something called “a mobility company.” However, it now looks as if GM is the firm making a beeline toward alternative revenue streams and a new business model, while Ford takes a more measured approach.  Read More >

By on December 11, 2017

Expect your local Nissan salesman to work extra hard for that pre-Christmas sale. That’s because Nissan, which can still boast a year-to-date sales increase in the United States, isn’t exactly overflowing with 2018 models.

Inventory of 2017s remains higher than the automaker would prefer, meaning it needs to do something to move old stock out before the end of the year. But rather than heap more factory bonuses on its vehicles (the company’s incentive spending is second only to Kia in the industry), Nissan figures it’s a better deal to throw incentives at the salesperson.

“Happy holidays. Can I interest you in a new Rogue? Seriously, how ’bout that Rogue?” Read More >

By on December 7, 2017

Amazon’s Echo has already invaded homes across North America, but it’s now beginning to creep into vehicle infotainment systems. My parents have one and both are quite fond of its ability to answer basic queries through intuitive voice commands. Though my mother refers to the system as my father’s “new wife,” it prefers to be addressed as Alexa when being issued instructions. If you need another point of reference, it’s reminiscent of Apple’s Siri, the computer from Star Trek, and any other automated technology using a female voice as the primary interface.

However, as handy as these systems are, they sometimes make mistakes. Alexa is great at giving me the weather but, when you give her more complex requests, she’ll sometimes get confused. That’s not a big problem when you are able to whip out your phone and go online, but it can be real annoying when driving. Early voice command interfaces in automobiles were infuriating — it was often easier to give up and input whatever information you were trying to shout at Ford Sync, BMW iDrive, or whatever decade-old system you happened to be using.

Thankfully, voice recognition is far better now than it was in 2008. But with so many concerns about automotive safety cropping up, it’s a little surprising that nobody has yet perfected an interface that effectively allows motorists to keep their hands where they belong — on the wheel.  Read More >

By on December 6, 2017

BMW X7 concept

Because large, powerful vehicles surely play second fiddle to self-driving technology and electric powertrains, right? That sentiment might not hold true in the minds of driving enthusiasts, or even the people in charge of building those vehicles, but that’s the direction the industry’s headed. Greener. Smarter. More soulless.

At BMW, the company’s plan for a cleaner future comes with a steep price tag. In an odd twist, the cost of developing new technologies just might make life more enjoyable for driving enthusiasts in the near future. Read More >

By on December 6, 2017

Mini Cooper 5-door production line Oxford - Image: BMW UK

Mini faces a fork in the road in the United States. The retro-themed brand, reintroduced in the U.S. marketplace in 2002 by parent company BMW Group, needs to decide what it wants to be. Sales are falling as consumer tastes evolve towards larger vehicles. New technologies are cropping up at a rapid pace. What is the child of the British Motor Corporation, British Leyland, Rover Group, and BMW Group to do?

BMW Group management board member Peter Schwarzenbauer knows the brand needs to evolve — and not just in the U.S., where the brand reach a high point in 2013. After announcing a new electric Mini Cooper Hardtop (Mini E) for 2019, Schwarzenbauer took some time to address its U.S. plans. Read More >

By on December 5, 2017

Ford/Zotye Agreement

Practically every automaker seeking to expand its global footprint is courting China right now. Ford Motor Company has already signed an agreement with Anhui Zotye Automobile to set up a $754 million joint venture focused on electric cars in the hopes it can get a head start on the country’s fast-approaching EV mandate.

With so much opportunity for growth, major manufacturers see Asia as a ripening market as North America withers on the vine. With that in mind, Ford has announced plans to launch 50 new vehicles in China by 2025.  Read More >

By on December 4, 2017

 

2018 Honda Accord Touring 2.0T - Image: Honda

In a shrinking segment increasingly dominated by two longstanding nameplates, the battle for sales supremacy is quickly resembling a U.S. election. Two main players, plus a handful of also-rans. (In Europe, this would be a very different — and probably quite confusing — affair.)

For all players in the U.S. midsize sedan market, it’s really a battle to hold on to market share, to keep sales from sliding further, as more and more customers look elsewhere for family transportation. Two Japanese offerings, the Honda Accord and Toyota Camry, loom over all other challengers. In November, one of these nameplates began putting some serious distance between it and its main competitor. Read More >

By on December 4, 2017

Care by Volvo subscription service

Automakers are throwing everything they currently have at the wall to see what sticks. The concept of “mobility” is now so broad that it encompasses automation, electrification, vehicle connectivity, alternative modes of transportation, driving aids, ride-sharing, ride-hailing, and even subscription services — and plenty of companies are giving them all a shot.

Last week, we talked about Volvo’s new car subscription service. Most of us had difficulties rationalizing the price based on how the product is being offered. A lot of companies are testing those waters right now, especially luxury brands. Lincoln recently launched a subscription initiative that is extremely similar to Cadillac’s, and Porsche has been buzzing about its own “Passport” service. However, mainstream brands like Ford and Hyundai are also trying their hand — albeit very differently.  Read More >

By on December 4, 2017

Cadillac Championship edition

After overseeing the introduction of the “Dare Greatly” campaign, a move of company HQ to tony Manhattan, and an ad spot touting Super Cruise during the MTV Video Music Awards, Uwe Ellinghaus is resigning from his post as head marketing honcho at Cadillac.

Tapped by Caddy chief Bob Ferguson in 2014, Ellinghaus arrived at the luxury automaker after a stint at Montblanc International and, prior to that, nearly 15 years at BMW.

Read More >

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