Category: Industry

By on September 21, 2017

hyundai-sonata-eco-grille logo

Snubbed by both the Germans and the Chinese, Fiat Chrysler Automobiles is continuing its journey to find the automaker that will sweep it off its feet and say, “Let’s build a factory together.” However, if CEO Sergio Marchionne maintains that FCA will be bought by an established automaker, he’s running out of options. The automotive dating pool isn’t particularly deep.

While there was some stirrings of vague Korean interest when news broke of talks between FCA and Chinese automakers, those rumors dissipated quickly. But reports of a possible business deal between Hyundai and the Italian-American company surfaced recently after Great Wall Motors shrugged off its proposed bid for Jeep. FCA later said it had not received any offer from the Chinese manufacturer.

Presumably, Great Wall would have used FCA to supplement its sport utility sales and begin making moves on North America. Another brand that might be interested in bolstering its supply of SUVs is Hyundai — something the South Korean press has been buzzing about all week.  Read More >

By on September 21, 2017

2017 INFINITI QX50 - Image: InfinitiAs Infiniti prepares to launch the replacement for the Infiniti QX50 next year, quite likely fitted with a unique new turbocharged engine with continuously altered cylinder compression ratios, the first-generation Infiniti QX50 takes a breather for the 2018 model year.

It may not be a well-deserved break — the QX50, formerly known as the EX35 and EX37, accomplished little for the Infiniti brand in America — but it’s a long overdue pause on Infiniti’s compact crossover.

It’s an odd duck, the QX50. Essentially a fast but outdated wagon, frequently sold in rear-wheel-drive form, the QX50 is still widely available prior to its relaunch for MY2019. The Infiniti QX60 Hybrid, on the other hand, is was the fuel-efficient version of Infiniti’s most popular product. At the end of the 2017 model year, the QX60 Hybrid is dead, Motor Authority reports. Read More >

By on September 21, 2017

New Volvo XC40 - exterior - Image: VolvoOf the 1.4 million new vehicles sold in the United States of America each month, premium auto brands account for slightly more than one out of every ten new vehicle acquisitions.

More than 55 percent of the vehicles now sold by premium auto brands in America are utility vehicles. Of the nearly 100,000 luxury SUVs/crossovers sold in America each month, 7 percent are subcompacts, vehicles positioned below the compact BMW X3, Mercedes-Benz GLC, Audi Q5, and a variety others.

It’s a sliver of a slice of a chunk of a pie. But that sliver is growing far faster than the overall U.S. auto market, far faster than the U.S. luxury vehicle market, and far faster than the U.S. luxury SUV/crossover market.

Into that four-vehicle premium subcompact crossover segment now jumps the Volvo XC40, timed to roughly coincide with the arrival of the Jaguar E-Pace. It’s a segment that, to date, no automaker has yet found a way to dominate. Read More >

By on September 21, 2017

2018 Toyota Camry SE white - Image: ToyotaYour excitement knows just cause. Upon reporting that the 2018 Toyota Camry would feature the American midsize segment’s most powerful base engine, the masses descended. We could see the hair standing up on the back of your neck through the series of tubes that is the internet.

In the 2018 Toyota Camry L, LE, SE, and XLE trims, the Camry’s new 2.5-liter four-cylinder produces 203 horsepower and 184 lb-ft of torque, at 6,600 and 5,000 rpm, respectively. In the 2018 Toyota Camry XSE, however, the Dynamic Force 2.5-liter produces — wait for it — 206 horsepower and 186 lb-ft of torque, gains of three ponies and two lb-ft.

So what do those major power gains, up from 178 horses and 170 lb-ft in the 2017 Camry, get the owner of the new 2018 Toyota Camry? Read More >

By on September 20, 2017

earthquake damaged car (public domain)

Automakers spent Wednesday surveying factory sites in Central Mexico after a 7.1 magnitude earthquake ravaged the region Tuesday evening. However, after some momentary shutdowns, it’s looking like business as usual for most manufacturers. Despite countless injuries, over 200 fatalities, and widespread damage yet to be fully assessed, the automotive industry emerged from the quake largely unscathed.

Arguably the hardest hit, Volkswagen Group’s Puebla plant temporarily halted assembly so workers could inspect buildings for damage. Finding no significant structural harm, factory employees resumed third-shift production of the Jetta and Golf.

Audi’s crossover plant, also in the state of Puebla, sustained no obvious damage. It’s second shift was halted early on Tuesday as well. The company said third-shift production was canceled so that employees could attend to their loved ones after the quake. Read More >

By on September 20, 2017

2018 Lexus LC500 front - Image: LexusLexus has high hopes for the LC, we told you in March. Not yet on sale at that point, Lexus was entirely transparent about the company’s belief that it could sell 400 copies of the LC500 and hybridized LC500h every month in America.

“That’s a big number,” I wrote six months ago, expressing a measure of doubt. But Lexus was insistent, based on “tremendous response to the LF-LC show car” from 2012, a successful carryover to production of concept car design, and “positive feedback in customer clinics.”

Doubt was expressed by most commenters, as well. “Good luck with that,” Master Baiter told Lexus. “Lexus, you need help,” said thats one fast cat. “Setting a goal like this is just setting Lexus up for the unnecessary perception of failure,” dal20402 wrote. “Dumb move.” badhobz said, “I don’t think it’ll do that well.”

It’s been half a year. It’s time for the Lexus LC to stand up and be counted. Read More >

By on September 20, 2017

2017 Subaru Impreza sedan and hatch - Image: SubaruThrough the first eight months of 2017, consumers across America have acquired 12 percent fewer new passenger cars than during the first eight months of 2016.

That’s a drop of 565,000 sales, a rate of decline that stands in stark contrast to the U.S. auto industry’s 4-percent year-over-year light truck improvement. Cars now account for just 37 percent of all auto sales, down from more than 50 percent as recently as 2012. But it’s not all doom and gloom. Some auto brands are selling more cars this year than last, and a wide variety of cars are accelerating their sales pace. Subaru, for example, has already sold 17,981 more Imprezas in 2017 than in the same period of 2016.

So we’ve compiled a list of every passenger car that’s making meaningful headway in America’s anti-car market — the cars that are selling more and more often even as many of their competitors suffer under the weight of a pro-F150, pro-RAV4, pro-Escalade ESV wave.

The list is not very long. Read More >

By on September 20, 2017

2018 Buick Cascada Rioja Malbec - Image: General MotorsBy the standards of niche market convertibles, the Buick Cascada is, or at least was, a certifiable hit.

Sales of the Cascada have tumbled by a fifth in 2017, year-over-year. More recently, Cascada sales fell by nearly 40 percent during the height of the summer. But since going on sale at the beginning of 2016, more than 11,000 Buick Cascadas have been sold in the United States. At times, the Buick has even outsold Mazda’s MX-5 Miata. And no, before you draw an entirely incorrect conclusion, hardly any Cascadas have gone into the daily rental mix. More than 99 percent of the Buick Cascadas sold in America were retail acquisitions.

But for its third model year, Buick feels it’s time to spice things up. The Cascada, historically available in very few shades, is getting new paint options for the 2018 model year. Why?

“Color is back,” Buick’s Catherine Black says.  Read More >

By on September 20, 2017

2012 Chrysler 300 SRT8 - Image: FCAIf you’ve got it, flaunt it. Go ahead and shake your money maker.

Or not.

After reports surfaced at Automotive News earlier this week that the 707-horsepower supercharged 6.2-liter V8 from the Dodge Charger Hellcat, Dodge Challenger Hellcat, and Jeep Grand Cherokee Trackhawk would appear in a Chrysler 300 next year, Motor Authority has heard from Fiat Chrysler Automobiles on the subject.

It’s not going to happen. Read More >

By on September 19, 2017

2018 Land Rover Discovery - Image: Land RoverThe new 2018 Land Rover Discovery (née LR4) is not the automatically handsome successor to the Discovery 4 you assumed it would be.

The front end is visually softened. Viewed from the side, there’s enough bodywork between the windowline and wheelwell to empty the paint shop. The need to maintain a traditional Discovery shape was compromised in part by aero demands, and the result is flat rather than boxy. The C-pillar leaning far forward is more reminiscent of a Lexus RX than a Discovery Series I.

But it’s around the back where Land Rover’s own design boss, Gerry McGovern, has his own problem. “Overall, I like the design of the back of the Discovery for its asymmetry,” McGovern tells Auto Express, “because it’s tipping its hat to the Discoveries of the past.”

The problem then, Mr. McGovern? License plates. Yes. License plates. Read More >

By on September 19, 2017

Volvo Cars Torslanda assembly plant - Image: VolvoVolvo continues to look forward to real U.S. sales recovery, meeting the goal of record U.S. sales volume by 2020, and a fourth consecutive year of record global sales. To get there, Volvo is already altering plans at the Charleston, South Carolina, assembly plant where construction is already in full swing.

Altering? According to Reuters and Charleston’s Post and Courier, it’s more like deciding that the plant should be twice as large, build twice as many vehicles, house more than twice as many employees, and cost twice as much. Read More >

By on September 19, 2017

2018 Ford Fiesta ST three-door - Image: FordOver the last seven years, America, you didn’t buy many Ford Fiestas. Fewer than 430,000, in fact. For perspective, in the much smaller United Kingdom market, Ford sold over 500,000 Fiestas in just the last four years.

But the Fiesta’s lack of popularity — and its dramatic loss of popularity in America — is not a unique-to-Ford situation. U.S. sales of subcompact cars plunged by more than a fifth, year-over-year, during the first eight months of 2017. That tumble comes after U.S. sales of subcompact cars declined in 2015 and 2016, as well.

Nevertheless, it comes as no surprise that Ford, after exploring America’s affordable avenues for one generation of Fiesta, isn’t bringing the seventh-generation version to America. And now we have confirmation that there is absolutely no hope the next-gen Ford Fiesta ST will come stateside, either. Read More >

By on September 19, 2017

2018 Honda Accord Ohio assembly plant - Image: HondaAmerican Honda’s vice president for sales, Ray Mikiciuk, won’t provide a firm forecast for sales of the 10th-generation Honda Accord. But as far as next year goes, “I don’t expect to sell fewer Accords in 2018 with this great new product,” Mikiciuk tells CNBC.

With belief in the company’s new product, Honda has invested $267 million into its Marysville, Ohio, plant where the Accord, Acura TLX, and Acura ILX are assembled. With 300 additional employees, American Honda is following the lead of Toyota’s all-new 2018 Camry.

At the Camry’s Georgetown, Kentucky, assembly plant, production of the new TNGA-based Camry required Toyota to build up its employee count to the highest level ever. That’s certainly not the way rivals are approaching America’s midsize segment. You’ll recall that General Motors cut Chevrolet Malibu production — and consequently, jobs — in Kansas City earlier this summer. Prior to the new Camry’s launch this summer, the Malibu was the freshest midsize sedan on the block, yet Malibu sales have plunged by more than a fifth in 2017.

Ohio production of the 2018 Honda Accord began yesterday, September 18th. But what do Honda’s vague sales forecasts mean in the broader American midsize segment?

More market share. Read More >

By on September 19, 2017

2017 Toyota Tacoma 4Runner Tundra TRD - Image: ToyotaEarlier this month, Toyota board chairman Takeshi Uchiyamada told CNBC that the company was “skeptical there would be a rapid shift to pure electric vehicles, given questions over user convenience.”

It shouldn’t be perceived as a revolutionary thought. But with automakers increasingly touting their plans for “electrification” — a word too many observers have interpreted incorrectly — and regulators increasingly promoting their plans to do away with internal combustion engines, Uchiyamada’s honesty regarding the limitations of electric vehicles flew in the face of advanced automotive thought.

It did not, however, fly in the face of conventional Toyota thought. According to Reuters, the president of Toyota Motor Corporation, Akio Toyoda, says, “EVs are in focus at the moment but customers and the market will ultimately decide which powertrains will be successful.”

You’d almost think Akio Toyoda was — crazy as this may sound — running a business. Read More >

By on September 18, 2017

Dealer Showroom

Car dealerships are an American institution. Often controlled by a patriarch with an unusual amount of sway in the local community (and their sometimes cosseted children), dealer franchises dot the country’s landscape like moles on a back. Isolated near exit ramps, they serve as gleaming beacons of civilization as you traverse through long expanses of wilderness on a road trip.

North America wouldn’t be the same without them but, according to one automotive regent, irreparable change is coming to the dealer networks we’ve become begrudgingly accustomed to. Bill McDaniels, president of McDaniels Automotive Group, runs a half-dozen stores selling selling Acura, Audi, Porsche, Subaru, and Volkswagen-branded vehicles in South Carolina. He’s one of those automotive viceroys mentioned earlier, right down to having his son as the chief operating officer for his business, and he’s convinced the era of family-owned dealerships is almost over.

Is this one man’s paranoid delusion or an astute observation of industrywide trends?  Read More >

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