Category: Industry

By on May 16, 2017

Tires

General Motors has announced it will choose “sustainable natural rubber” for the 49 million tires it buys each year. The automaker claims it is establishing a set of buying principals to ensure sustainably harvested materials and is encouraging other automakers to follow suit in a bid to reduce deforestation.

It won’t suddenly make driving your Chevrolet good for the environment, but it should give drivers bragging rights — allowing them to claim their tires killed fewer critters before even getting the opportunity to run any over.

However, environmental smugness is occasionally warranted. With tire manufactures representing 75 percent of the natural rubber market (according to the World Wildlife Fund), an overall shift toward sustainability would provide a measurable impact on deforestation. But what is General Motors getting out of this move and what will the price of environmental awareness be? Read More >

By on May 16, 2017

Chevrolet Traverse 2018

Like floodwaters pooling in a reservoir, unsold General Motors vehicles are getting close to breaching the dam. Not since November 2007 has the automaker held so many vehicles in reserve, though GM claims there’s nothing odd about the buildup.

With several updated models either imminent or on the way, it would make sense for GM to stock up in order to keep dealers and customers happy during production gaps. In this case, however, the numbers don’t seem to add up. Read More >

By on May 16, 2017

Ford badge emblem logo

The Ford Motor Company is allegedly preparing for a sweeping reduction of its global workforce. Harder days for the auto industry have been a long time coming, but reports claim the impending layoffs are specifically related to shoring up finances and turning around the company’s lagging stock valuation — meaning Ford could be the canary in the coal mine or a lone company desperate to bolster its own profitability and get angry shareholders off its back.

While the automaker has not yet confirmed the cuts, there is every indication an announcement will be made soon. When confronted with the matter, representatives have been careful to make noncommittal statements and doubly cautious not to deny anything.

“We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities,” Ford said in an official statement. “Reducing costs and becoming as lean and efficient as possible also remain part of that work. We have not announced any new people efficiency actions, nor do we comment on speculation.”  Read More >

By on May 16, 2017

Shift By Wire shifters - Images: BMW, Toyota, Lincoln, Chrysler, GMC

Center-mounted in a vertical fashion, the shifter in the fifth-generation 2018 Honda Odyssey profiled yesterday by Chris Tonn requires drivers to push a rectangular button for park, pull back an indented button for reverse, push another rectangular button for neutral, or depress a square button for drive.

In the new, second-generation 2017 GMC Terrain, a low-slung horizon of shift buttons mandates pushes of a rectangle for park and a small square for neutral plus a slight pull for reverse or, farther to the right, drive.

Perhaps you’re familiar with the lengthy push-button shift mechanism in newer Lincolns, where buttons for ignition, park, reverse, neutral, drive, and sport are laid out vertically on the driver’s side of the centre stack.

Some automakers are trying out rotary knobs, or shifters with separate park buttons, or monostable shifters that have earned a bad name.

They’re here to stay. Blame technology. Hope for reliability. Don’t expect standardization. Read More >

By on May 15, 2017

2017 Mini Cooper S Countryman All4 front – Image: Mini USA

Forget all about a Mini sedan, roadster, or even an extra-small two-seat hatchback. The British automaker isn’t having any of it.

Despite earlier reports to the contrary, Mini has no immediate plans to diversify its current lineup, preferring to wait until the next-generation Mini rolls along before going nuts (if indeed it ever does). In the meantime, are you interested in a crossover or near-crossover? Read More >

By on May 15, 2017

2016 Mazda CX-9 - Image: Mazda“I am not comfortable with 2 percent. I’m comfortable with a good 2 percent.”
– Masahiro Moro, President and CEO, Mazda North American Operations

Mazda’s U.S. market share fell to a 10-year low in 2016 and hasn’t noticeably recovered in the first four months of 2017. A small lineup with no presence in key segments limits Mazda’s chances of becoming a major automaker.

But Mazda doesn’t want to be a major automaker. Mazda wants to be a small but profitable automaker with profitable dealers and loyal buyers.

Mazda also wants to carry greater sway in the U.S. market than it does at the moment. Only slightly. Fractionally more. Marginally, almost imperceptibly more. Only 1.7 percent of the new vehicles sold in the United States are Mazdas. Mazda wants 2 percent, surely a reasonable and easily attainable goal.

But Mazda’s North American boss, Masahiro Moro, has no intention of jumping up to that 2-percent marker rashly or hastily. Read More >

By on May 12, 2017

robert_lighthizer 2017

I hope you’re fond of domestic automobiles.

The Trump administration is setting the table to make importing cars more difficult with the U.S. Senate confirming Robert Lighthizer in an 82-14 vote as the U.S. trade representative, prepping the country for an assertive trust from the White House’s America First trade strategy. Read More >

By on May 12, 2017

2017 Ram 1500 Outdoorsman Crew Cab 4x4 EcoDiesel

Fiat Chrysler Automobiles has recalled 1 million Ram pickups in North America as the side airbags and seatbelt pretensioners may not operate as designed in the event of a rollover.

According to The Detroit News, the recall covers the 2013-2016 Ram 1500 and Ram 2500 and 2014-2016 Ram 3500. On Friday, FCA stated one death, two injuries and two accidents may be linked to the issue. Apart from the U.S., around 216,007 vehicles are affected in Canada, 21,668 in Mexico and 21,530 outside the NAFTA landscape.
Read More >

By on May 12, 2017

self-driving uber advanced tech center autonomous car

Waymo’s lawsuit against Uber Technologies’ alleged theft and usage of autonomous trade secrets is going to trial.

Judge William Alsup ruled Uber could not force the case into private arbitration and is referring the matter to the United States Attorney for a very public investigation.

This is everything the ride-hailing company didn’t want.

Read More >

By on May 12, 2017

2014 Nissan Quest - Image: Nissan“The Nissan Quest has been discontinued for the U.S. marketplace.”
– Nissan Sr. Manager, Product Communications, Dan Passe

TTAC has been tracking the Nissan Quest’s failure in the U.S. marketplace for some time. Just ahead of Christmas last year, when it appeared as though the Quest was surely dead in the water, Nissan confirmed that there would in fact be a 2017 Quest.

But when tipped off by an industry insider last February, we noticed that Nissan was reporting higher-than-normal Quest sales despite lacking any meaningful inventory. That’s right — the 2017 Nissan Quest was essentially a fleet-only vehicle.

Most of us stopped tracking the story. After all, it’s a minivan, and a long-ignored minivan, in a market where buyers are currently turning away from minivan in droves. TTAC’s Corey Lewis didn’t quit, however. Like a dog with a bone, Corey discovered that the Quest was missing from NissanUSA.com. Under the Minivans & Vans section, there’s no minivan. We asked Nissan, not for the first time, whether the Quest is dead.

The Nissan Quest is dead. Gone. Expired. Terminated. Read More >

By on May 12, 2017

2018 Honda Odyssey - Image: Honda

U.S. minivan volume has decreased in nine consecutive months as the American minivan category lost 70,000 sales since August 2016, year-over-year.

As a result of the steady decline in a minivan segment that essentially features only five vans, 2017 is set to be the lowest-volume year for the category since 2009. At the rate achieved through the first one-third of 2017, Americans will purchase and lease only 452,000 minivans in 2017, just 2.6 percent of the overall market and only slightly more minivans than Americans purchased and leased when the overall industry collapsed to the lowest level in 27 years.

Or perhaps not. Fresh product is the carnauba wax bath balm for the soccer mom segment’s tired flesh. And a new 2018 Honda Odyssey is due at dealers in the coming weeks. (We’ll have a review of it next week.)

Is a new Odyssey the answer for America’s minivan woes?

Honda believes so. Read More >

By on May 12, 2017

2017 Subaru Outback - Image: Subaru

Although Subaru is selling more new vehicles than ever before, particularly in North America, the automaker’s run of record profits came to end in the fiscal year ending March 31, 2017. Subaru made money, no doubt, but Subaru’s operating profit was down 27 percent compared with the prior year.

Subaru’s revenue grew 3 percent while global volume rose 11 percent to more than 1 million vehicles, according to Automotive News. That’s the kind of information that matters to investors.

As for consumers, it’s the information from Subaru CEO Yasuyuki Yoshinaga that matters most. Saying the U.S. market has peaked, Yasuyuki Yoshinaga claims, “The market environment has increasingly become tougher.” In a tougher market, Subaru’s largest market, an automaker must either give way or make way.

Subaru’s decision? “We will carefully examine the situation and will take the necessary steps to maintain our sales, including incentives,” Yoshinaga says.

You heard right. Subaru, notorious for limited supply and limited scope for deal-making, might just offer you a bit of a discount on your next Outback or Forester. Read More >

By on May 11, 2017

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

Volkswagen Group CEO Matthias Müller is under investigation in Germany over the possibility he withheld important information on the company’s emissions scandal to investors, as well as potential market manipulation relating to Porsche. While public prosecutors continued to broaden their search among high-ranking company officials, the inclusion of the CEO is a bit of a surprise.

It was widely believed Müller would be free from scrutiny as he was appointed to replace ex-CEO Martin Winterkorn shortly after the emissions scandal went public in September 2015. Initially, German investigators even stated the CEO was not suspected of any wrongdoing. Then, in March of 2017, prosecutors launched a raid that seized the mobile phones, electronic passwords, appointment books, and email files of numerous Volkswagen and Audi employees — including Müller.  Read More >

By on May 11, 2017

2016 Chevrolet Impala Midnight Edition - Image: Chevrolet

We knew General Motors’ strategy for the tenth-generation Chevrolet Impala would be different when the big sedan was launched in 2013. No longer intended to be the fleet queen and a hugely discounted showroom sedan, the tenth-gen Impala moved upmarket.

Consequently, sales decreased, and did so in dramatic fashion. The Impala’s U.S. volume in 2014 was down by more than half compared with 2007 output. Sales continued to fall, with the Impala’s 2016 calendar year result of 97,006 U.S. sales representing the sixth consecutive year of decline.

The Impala’s numbers are getting lower. Much lower. After averaging more than 8,000 monthly Impala sales in 2016 and nearly 10,000 per month as recently as 2015, Impala volume has cratered in early 2017. Only 3,213 Impalas were sold in the United States in April 2017, down 73 percent compared with the Impala’s April average over the last five years.

But don’t assume the scarcity of Impala sales will translate to an abundance of deals at your local Chevrolet dealer. Impalas are thin on the ground, and GM isn’t playing games with incentives. Read More >

By on May 10, 2017

 

Ren Cen. GM

Automakers are seeing diminished interest in product as market demand levels off after years of post-recession growth. While some analysts are heralding an industry-wide doomsday, others have cited this as an inevitable market ebb with no cause for alarm. Either way, domestic and foreign automakers have begun scaling back production efforts.

In the United States, Ford recently announced layoffs at its Ohio truck plant and General Motors may be following suit by eliminating 1,100 employees at the Delta Township Assembly Plant near Lansing, Michigan.

GM’s newest U.S. factory was already scheduled undergo retooling for the 2018 Chevrolet Traverse and Buick Enclave crossovers. However, when the plant reopens this June, there’s a good chance that third-shift employees won’t be returning. Read More >

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