Category: Industry

By on May 25, 2017

Vinay Shahani Toyota VP Marketing - Image: Toyota

Vinay Shahani, a former decade-long Nissan employee, has just been poached from Volkswagen of America by Toyota.

Shahani was Volkswagen’s U.S. vice president in charge of marketing, responsible for cementing a cohesive product message after the eruption of the now infamous diesel emissions scandal that broke in September 2015.

“Things are definitely difficult for the Volkswagen brand,” Shahani told the Automotive News New York Marketing Seminar one year after Volkswagen’s wrongdoing was made public.

Shahani’s perseverance through said difficulty obviously drew the attention of Toyota Motor North America, particularly since Shahani’s resume proves he’s no mere ad man. Read More >

By on May 24, 2017

Lotus

China’s Zhejiang Geely Holding Group Company has decided to purchase a 49.9 percent stake in Proton from Malaysian conglomerate DRB-Hicom and a majority share of the United Kingdom’s Lotus Cars.

Geely seems to have an affinity for other manufacturers and eclectic tastes — not just because it has received criticism for modeling its own cars after everything from Roll-Royce to Toyota, but because it also purchased Volvo Cars and the London Taxi Company. This could be extremely good news for Lotus, which always seems to be in a bit of a bind. Whether or not you like the idea of a Chinese company owning distinctively European brands, Geely helped Volvo come back from the brink and has committed to doing the same for Lotus.

“Reflecting our experience accumulated through Volvo Car’s revitalization, we also aim to unleash the full potential of Lotus Cars and bring it into a new phase of development by expanding and accelerating the rolling out of new products and technologies,” stated the company in its official announcement.  Read More >

By on May 24, 2017

Mazda SUV lineup: CX-3, CX-4, CX-5, CX-8, CX-9 - Images: Mazda

Spotted recently on the streets of Chicago was a Japanese crossover that will never — not in final production form — actually make it to the streets of Chicago.

Nor to the streets of any other American city, for that matter. Wearing no camo and sitting in broad daylight, the diesel-powered Mazda CX-8 was photographed by Peter Lazar, albeit not from the front.

When the 2018 Mazda CX-8 is launched later this year, its primary market will be Mazda’s Japanese home base. “It will not be sold in the U.S., as CX-9 fills that role quite well,” Mazda spokesperson Jacob Brown told TTAC yesterday.

Mazda also re-confirmed that the CX-4, a more rakish take on the CX-5, is also still primarily a Chinese market crossover that will not make its way across the Pacific. In other words, 40 percent of Mazda’s global utility vehicle lineup stays outside the mighty SUV market that is America. Read More >

By on May 23, 2017

lansing assemblyl

As the clock counts down to the beginning of talks aimed at revamping the North American Free Trade Agreement, automakers in Mexico, the U.S. and Canada know one thing they don’t want to see changed — rules of origin.

Auto manufacturers must abide by minimum regional (NAFTA-wide) content rules in order for vehicles to remain free from import tariffs. President Trump’s proposed reforms aim to benefit U.S. companies, but could lead to greater costs heaped onto automakers — something no profit-minded company desires.

Naturally, automakers wants their feelings known well before the three countries get down to brass tacks. Read More >

By on May 23, 2017

Matthias Müller, Image: Volkswagen AG/Wikimedia Commons (CC BY 3.0)

Volkswagen has attempted to portray itself as a kinder and more responsible automaker in the wake of its emissions cheating scandal. However, CEO Matthias Müller says convincing middle management to change has proven exceptionally difficult. VW has been pushing to become — or at least seem like — a more transparent company that has decentralized its rigid management hierarchy.

“There are definitely people who are longing for the old centralistic leadership,” Müller stated during a meeting with business representatives on Monday. “I don’t know whether you can imagine how difficult it is to change their mindset.”

It’s been 20 months since the diesel emissions scandal entered the news cycle and Müller took over as chief executive. Throughout that time, VW’s top executives have tossed mid-level employees under the bus on numerous occasions. While there is little reason to doubt some might have trouble adjusting to a new corporate climate, it would be nice to hear top brass taking any semblance of responsibility once in a while — even on something minor like this.  Read More >

By on May 23, 2017

JM Lexus Margate Florida - Image: Lexus.com

Half an hour from Fort Lauderdale, in Margate, Florida, sits JM Lexus, the highest-volume Lexus dealership in the United States.

Even by Lexus standards, where throughput is the best of any premium automaker operating in America, JM Lexus’ 8,000-unit new vehicle sales tally in 2016 was striking. That’s more than 150 new luxury cars, crossovers, and SUVs sold each week. That’s roughly six times the volume achieved by the typical Lexus dealer.

And JM Lexus, perennially the top Lexus dealer in America, does so as part of the Lexus Plus strategy: no negotiating, a single representative per customer, fixed prices for new and used cars as well as service fees and accessories.

Perhaps there’s a lesson to be learned by Lexus’ other dealers. For the time being, according to Automotive News, only 5 percent of Toyota’s premium brand stores operate under the Lexus Plus model. Read More >

By on May 22, 2017

2018 outback

With the exception of Mazda and — until its Outlander PHEV finally lands on U.S. shores — Mitsubishi, Subaru remains one of very few automakers to completely eschew electrified powertrains.

Despite lacking any fully electric, plug-in hybrid or hybrid model (the unloved Crosstrek Hybrid met a quiet death last year), Subaru’s U.S. customer base continues to expand at a rapid clip, but a gas-only strategy can’t survive forever. Environmental regulations the world over insist Subaru should follow the lead of its rivals and build something without pistons.

Well, Subaru plans to. However, unlike many of its rivals, the automaker has indicated it might take a different path towards this goal. Read More >

By on May 22, 2017

Bill Ford and Mark Fields 2018 Ford F150 - Image: FordPrior to this morning’s announcement that outgoing Ford Motor Company CEO Mark Fields is “retiring,” Fields was in charge at the Blue Oval for nearly three years. Just a little more than ten quarters, to be more precise.

In eight of those quarters, Ford Motor Company U.S. market share declined, year-over-year.

Ford was not without excuse, of course. There was always market share to be taken if Ford wanted it. But an attempt to limit reliance on daily rental fleet sales, particularly with Ford’s passenger car division, did the automaker’s market share no favors. Ford’s transition from old F-150 to the new aluminum-bodied model was a major switch, too, and sales growth during the transition phase wasn’t easy to come by.

Nevertheless, Ford’s U.S. market share didn’t nosedive during the Mark Fields era. The burden on incoming CEO Jim Hackett’s shoulders won’t be the elevation of Ford Motor Company market share in the automaker’s home market.

No, it’s the price of a Ford share that matters right now. Read More >

By on May 22, 2017

2016 Mitsubishi Lancer - Image: MitsubishiAs Mitsubishi prepares to launch a new small crossover, the Mitsubishi Eclipse Cross, Mitsubishi’s car lineup continues to shrink.

The Galant died in 2012. The Mitsubishi Lancer, it was revealed earlier this year, will cease existence in the U.S. market later this year. But the Lancer’s American goodbye, via a blacked-out Limited Edition, won’t represent its final North American goodbye.

Mitsubishi Canada still wants the Lancer, the brand’s best-selling model as recently as last year, at least until 2018. And Mitsubishi Canada won’t bid farewell to the Lancer until the car can be given “a uniquely Canadian sendoff.”

We assume this means Tim Hortons’ double-doubles inserted in the cupholders straight from the factory along with a hockey bag in the trunk and a curling broom roof rack. Read More >

By on May 19, 2017

Aston Martin Logo Emblem

Rumors that Aston Martin is destined for an initial public offering, either eventually or imminently, have persisted ever since former parent Ford offloaded the British luxury marque in 2007.

The brand has come a long way since Ford dropped it off at the orphanage by expanding into new segments, spawning a sub-brand, and entering the non-automotive realms of merchandise and luxury speedboats. As its trajectory increasingly mirrors that of recently spun-off Ferrari, sources claim an IPO is right around the corner. Read More >

By on May 19, 2017

LIVONIA TRANSMISSION PLANT

Despite news that Ford Motor Company has started making plans to scale back its workforce in North America and Asia, there are 800 Michigan-based employees who needn’t fear for their jobs — all thanks to commitments made in the company’s 2015 deal with the United Auto Workers. Ford confirmed on Friday that it will be investing $350 million into its Livonia Transmission plant.

Keeping its end of the bargain means the site will be safe from layoffs and may even bring aboard new employees, although the number of new hires is unclear. It’s assumed the majority of the 800 hourly positions will be filled by Ford dipping into its own staffing pool.  Read More >

By on May 18, 2017

us-capitol

U.S. Commerce Secretary Wilbur Ross want to begin formal talks to renegotiate the North American Free Trade Agreement with Canada and Mexico in a little over three months, adhering to the campaign pledges made by President Donald Trump last year. Ross explained to reporters that “sometime in the next couple of weeks” he will issue a notice to Congress stating the Trump administration intends to start formal NAFTA negotiations in just 90 days.

However, since he expressed his intentions in front of a gaggle of reporters, Congress is probably already aware. But it won’t be “official” until they get a piece of paper signed by the appropriate parties on the applicable letterhead — hopefully, embossed with a fierce-looking eagle surrounded by dollar signs.  Read More >

By on May 18, 2017

Tesla Factory California

In the face of what it describes as “a concerted and professional media push intended to raise questions about safety at Tesla,” the California electric automaker has attempted to counter an apparent unionization tactic.

In a May 14th blog post titled “Creating the Safest Car Factory in the World,” Tesla said it was contacted by numerous media sources claiming to have spoken with similar workers at its Fremont assembly plant. The automaker sees this as an attempt by both the United Auto Workers and Tesla employees intent on organizing the plant to use instances of workplace injury as an organizational tool.

This morning, the story Tesla was working to get ahead of landed in The Guardian. Read More >

By on May 17, 2017

2017 Chevrolet Camaro SS - Image: white

General Motors reported 8,737 Chevrolet Camaro sales in the United States in April 2017, a 17-percent year-over-year increase for GM’s third-best-selling car last month.

For the sixth-generation Camaro, a car that had a decidedly unimpressive launch phase last year after routinely outselling the Ford Mustang for half a decade, April 2017’s improvement led to the best month yet. Not since the oft-discounted fifth-generation Camaro was nearing the end of its line in May 2015 has Camaro volume been so strong.

As for the headline-creating bits, yes, the Chevrolet Camaro beat the Ford Mustang in April 2017 U.S. sales. Camaro wins. Camaro is the victor. To the Camaro go the spoils.

GM must take time to enjoy its Camaro’s victories. Once routine, they’re hardly common now. Read More >

By on May 17, 2017

Matthias Müller, Image: Volkswagen AG/Wikimedia Commons (CC BY 3.0)

German prosecutors verified the launch of a formal investigation involving Volkswagen Group CEO Matthias Müller and chairman Hans Dieter Poetsch due to suspected market manipulation.

While we reported on the probe last week, Müller’s inclusion was highly unexpected. It was unclear what, if anything, officials had on the CEO and why they waited until now to add him to the growing number of upper-level executives under examination.

The Stuttgart prosecutor’s office stated on Wednesday the investigation was prompted by a request from market regulator BaFin in the summer of 2016. After spending some time gathering evidence, investigators began to believe executives deliberately postponed releasing information to investors about the scale of the scandal and didn’t adequately disclose its financial consequences.

VW Group maintains the leadership had complied with disclosure rules and executives were unaware of the scope of the emissions cheating scandal when it kicked-off.  Read More >

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