There was quite a debate occurring in TTAC’s private Slack channel yesterday — a conversation sparked by knowledge of a new discount from Fiat Chrysler Automobiles extended to those who lost insured vehicles in Hurricane Harvey.

The timing of the offer — CarsDirect  claims the deal was valid as of August 28th, even as images and video of the waterborne and helicopter rescues of Houston-area residents filled television screens and social media — raised an eyebrow. How soon is too soon? It would seem the main concerns of impacted residents over the past couple of days included finding food and shelter, reconnecting with loved ones, and perhaps picking up the pieces in both flood- and wind-damaged communities. Not shopping for a new vehicle online.

The nature of the offer sparked further debate. Affected residents in certain Texas and Louisiana counties can show a copy of their insurance claim form to receive $500 off the purchase or lease of a new FCA vehicle, certain models (like the Jeep Wrangler, Chrysler 200, SRT models, and Alfa Romeo Giulia Quadrifoglio) not included. Buyers can combine the offer with other applicable discounts.

$500 off that new Grand Cherokee? Whoo-wee, you might say. At what dollar amount does a post-disaster offer change from feeling like an opportunistic sales grab and more like a gesture of kind-hearted humanitarian assistance? Or is this just cynical thinking — should we regard any offer as a sign of generosity? It’s certainly not a new practice for any automaker. On and on it went.

Of course, any conclusion comes down to the individual. But this morning we heard FCA isn’t alone in offering deals to Harvey victims.  Read More >

It was quicker, quieter, more fuel efficient, and less expensive, but the all-new 2018 Honda Odyssey failed to win its first Car and Driver minivan comparison test.

The fifth-gen Odyssey is also the newest minivan redesign. The Toyota Sienna was updated for 2017 with a new powertrain but remains in large part the same minivan that arrived for the 2011 model year. The first Chrysler Pacifica minivan — aka the second Chrysler Pacifica — has been on sale for nearly a year and a half. The Kia Sedona, having lost its previous Car and Driver comparison test, was not deemed eligible for the test. Likewise, the Dodge Grand Caravan, while currently America’s top-selling minivan, was rendered ineligible by past performance.

With only three minivans in the test, all upper-crust examples of their specific nameplates, each contender finished on the platform. But lofty expectations for the all-new Odyssey failed to come to fruition, and the segment progenitor’s party trick produced a solid victory.

Stow’N’Go isn’t the only differentiator, however. Read More >

Audi announced a rather high-level reorganization of management on Monday as it continues grappling with life after Volkswagen Group’s diesel-emissions scandal.

The automaker is still on the receiving end of numerous criminal investigations and vehicle recalls, as well as criticism from unions. But four of its board members aren’t coming along for the ride. Audi AG is replacing CFO Axel Strotbek, production chief Hubert Waltl, human resources head Thomas Sigi and sales chief Dietmar Voggenreiter, effective at the end of this month.  Read More >

Not only is Volkswagen’s recently unveiled T-Roc subcompact crossover destined to avoid U.S. shores, Volkswagen’s Canadian dealers won’t be offering the T-Roc, either.

Revealed last week, we had always assumed the T-Roc was the logical next step for a Volkswagen brand that had suffered long and hard from a limited, delayed, premium SUV strategy in North America.

But it turns out Volkswagen of America will skip the T-Roc, likely in favor of a different small utility vehicle. So we asked Volkswagen Canada whether the T-Roc would arrive for the 2018 model year, the 2019 model year, or never at all.

Volkswagen’s response is the third option. “At least for now,” company spokesperson Thomas Tetzlaff tells TTAC.

Surely small-car-loving Canada — where the Honda Civic has been Canada’s top-selling car for 19 consecutive years and subcompact cars hold 19 percent more market share than they do in the U.S. — wants another subcompact crossover? Nah, not so much. Like Americans, Canadians haven’t fully latched onto the subcompact crossover, either. Not yet. Read More >

Volvo has lofty expectations for its presence in the U.S. luxury car market, but the Chinese-owned Swedish automaker is going to rely on a new boss to dramatically elevate the brand’s U.S. volume over the next three years.

Lex Kerssemakers, a Dutchman who’s been in charge of Volvo’s North American region for nearly three years, is being shuffled into the equivalent position as Volvo Cars’ senior vice president for Europe, Middle East, and Africa. It’s essentially a straight-up trade: Anders Gustaffson moves over from his role as senior vice president for Europe/Middle East/Africa to inherit Kerssemakers old job, according to Automotive News.

The new boss overseeing Volvo’s U.S. operations brings a retail-oriented perspective, having held his first job as a 14-year-old at his parents’ Volvo dealer in Sweden. Anders Gustaffson also held a role as CEO of Hertz in Sweden and was the leader of Volvo in its home market, as well.

Gustaffson’s predecessor —also his successor — hasn’t shied away from placing a large amount of pressure on Gustaffson’s shoulders. Through the first seven months of 2017, Volvo’s U.S. sales are down 9 percent, diving three times faster than the industry at large. Yet according to Kerssemakers, “Volvo should sell 150,000 vehicles a year in the U.S. [by 2020],” Automotive News reports.

That’s an 80-percent jump in the next three years. Get to work, Mr. Gustafsson. Read More >

You’ve already noticed an uptick in prices at the pumps, all courtesy of Texas oil refineries shut down by Hurricane Harvey, and further gas price hikes are on the way. However, the stalled storm’s impact on the automotive industry is only just beginning to be felt.

The damage inflicted on the hard-hit Texas coastline and especially in the swamped greater Houston area has the potential to make August a grim month for new car sales, coming in a year that hasn’t been kind to automakers in the United States. Read More >

Through the 2017 model year, Americans in search of a traditional entry luxury sedan could spend $350 to swap the Mercedes-Benz C-Class’s badge-emblazoned grille for an old classic.

Three horizontal bars, one vertical support, no badge.

The “Luxury” grille was also accompanied by unique bumper treatment and softer suspension.

But how were you to advertise the fact that you were, in fact, driving a Mercedes-Benz? There was a three-pointed star perched on top, a hood ornament in automotive parlance.

Unfortunately, the C-Class hood ornament that harkened back to a more elegant era has gone the way of crank windows.  Read More >

Accompanied by a modest price increase of $150, Mazda’s first-generation CX-3 undergoes numerous under-the-skin updates for the subcompact crossover’s third model year.

Mazda’s Smart City Brake Support is now standard across all 2018 CX-3s. G-Vectoring Control, a nifty piece of software that sharpens steering response while reducing driver effort, is also standard on every 2018 Mazda CX-3. Mid-grade CX-3 Tourings are now equipped with auto headlights, auto climate control, and rain-sensing wipers.

Thicker glass, more sound deadening, and improved door seals bolster every CX-3’s refinement quotient. Mazda has also altered the suspension tuning of all CX-3s for the 2018 model year. Mazda claims revised bushings, new front lower control arms, recalibrated dampers, and new engine mounts will improve the CX-3’s “already class-leading chassis dynamics.”

Mazda’s probably not wrong. The 2016-2017 CX-3 was an exceptionally pleasing subcompact crossover to drive. And on that particular subject — on-road behavior — we’re apt to trust Mazda when the company says the refreshed model will be even better. But this is just a refresh, and an invisible refresh at that. As a result, the Mazda CX-3 has the same limitations for MY2018 that it had before, the kind of limitations that severely cramp demand.

It’s very small. Read More >

Volkswagen is perpetually late to the SUV party. That much we knew already. The Volkswagen Touareg came late, and was improperly positioned. The Volkswagen Tiguan was much later, and it too was overpriced and undersized. The Volkswagen Atlas, the brand’s first three-row crossover, only arrived in America this spring.

The Volkswagen T-Roc was clearly not the first guest to arrive, either. The Nissan Juke, Mini Countryman, Subaru Crosstrek, Buick Encore, Chevrolet Trax, Jeep Renegade, Fiat 500X, Honda HR-V, and Mazda CX-3 have been collecting U.S. sales for years. But it’s not as though Volkswagen was the only major automaker late to the party. Ford’s EcoSport still isn’t here, the Hyundai Kona and Kia Stonic were unveiled only recently, and Toyota’s C-HR is a fresh release that lacks an all-wheel-drive option.

But the Volkswagen T-Roc, revealed last week, will be more than just late to the party. In the United States, the Volkswagen T-Roc has returned its invitation by ticking the wrong box. Regret to decline.

Volkswagen of America has confirmed to TTAC that the Volkswagen T-Roc will not come to the United States, probably not ever. Read More >

News that suggests General Motors no-car GMC division is closing in on the launch of its own subcompact crossover to accompany the compact GMC Terrain coincided with revelations from GMC’s division manager regarding the future of a Jeep Wrangler rival from GMC.

There won’t be a Jeep Wrangler rival from GMC.

Ford’s Bronco is yet two years away, and the extent to which the next Bronco will directly challenge the #iconic Jeep Wrangler remains a complete unknown. Rumors differ.

But according to the global head of Buick and GMC Duncan Aldred, GMC has no intention of tangling with the Wrangler in the convertible, off-road, body-on-frame sector over which the Wrangler exerts total control.

“I don’t think it’s worth trying to take on Wrangler,” GMC’s Aldred tells Automotive News. Read More >

Small crossovers are a natural fit for a brand that sells not a single passenger car, but GMC has been sorely lacking in smaller utility vehicles for much of its tenure.

The first-generation GMC Terrain, something of a tweener-sized utility vehicle, didn’t arrive until 2009. For its predecessor, General Motors decided to concentrate attention on its Pontiac brand, which resulted in the oft-forgotten Torrent.

But down another rung on the ladder sits subcompact utility vehicles. GMC brand boss Duncan Aldred says General Motors’ all-light-truck division “should have been first in the segment.” Instead, the Buick Encore and Chevrolet Trax generate 13,000 monthly U.S. sales, thereby controlling America’s subcompact crossover category.

GMC? On the sidelines, waiting for the next generation of GM subcompacts to spawn a crossover for the very brand that should have had one in the first place. Read More >

Despite festooning its large utility vehicles with the latest and greatest fuel-saving technologies — turbocharging, dual injection, 10-speed automatics — Ford isn’t finished reducing the thirst of its big SUVs.

According to sources with knowledge of the automaker’s product plans, the push for better MPGs includes giving those gas-fueled engines a break once in awhile. Care for an extra motor in your Expedition or Navigator? Read More >

For a variety of reasons (the post-recession binge finally cooling off is the biggest), new-car sales are down in the United States. One would expect that would hurt the revenue of new-car dealerships. Not so much, it turns out, as dealers have found other ways to generate revenue. Or at least that’s what a Bloomberg report says. But there are caveats that suggest the Bloomberg piece may be generalizing. In other words, maybe some shops are seeing more revenue from more work, but other shops aren’t, even as they get busier, due to other factors.

Traditionally, new-car dealerships have always generated revenue and profit from their service and parts departments – and those departments outshine sales at many stores. So it’s not surprising to see dealers turning to a reliable profit center when sales slump.

Read More >

The long-established U.S. auto industry is essentially impossible to turn on its head. An automaker can’t simply show up with a new brand or a new philosophy or new design tactics and instantly upset the apple cart.

Just as you can’t teach an old dog new tricks, it’s difficult to teach an old automobile market to adopt new buying habits. Market share swings are incremental. Progress is slow. At Acura, for example, facelifts of the TLX and RLX sedans and improved availability of the MDX (after moving some production to Ohio) will likely not combine to increase the brand’s market share by even one-tenth of one percent.

Given the difficulties faced by Acura in America — sales have fallen by more than a quarter since 2005 — Honda’s premium brand is turning its gaze to a larger, fresher, less established market. A market where buying habits are not cemented, where market share is still up for grabs, where market-specific vehicles are the norm.

And if Acura can soon succeed in China, where the brand has high hopes for the near-term, then Acura stands a much better chance of succeeding in America. Read More >

MSRPs aren’t meaningless.

Okay, sometimes they’re meaningless. The manufacturer’s suggested retail price — dealer may sell for less, or more — is just one element of a new vehicle acquisition’s true cost. For most vehicles, the MSRP is just the starting point for negotiations, which won’t truly begin until you have a clear idea of the automaker’s incentive load. Employee pricing. Anniversary bonus. Labor Day credits. Red tag deals. Summer clear out. Memorial Day rebates. July 4th blowouts.

Then there’s the interest rate equation, which will change based on credit, term, and numerous other factors. Next, apply unappetizing dealer fees. And now, if you’re considering leasing, throw another whole set of numbers into this kettle of fish.

Out comes a lease payment for the $73,595 2017 Alfa Romeo Giulia Quadrifoglio that’s nearly double the cost of a BMW M3; a lease payment 77-percent higher than on the Cadillac CTS-V, even though the CTS-V’s MSRP is 17-percent higher.

We urge you: please do not lease an Alfa Romeo Giulia Quadrifoglio until terms change.  Read More >