Category: News Blog

By on May 12, 2020

Over-the-air (OTA) updates are opening new doors for manufacturers, providing a way to continuously update vehicles after they’ve been purchased. We’ve had mixed feelings on their implementation.

While Tesla has used OTA updates to enhance features on its products, it also sees the technology as a way to rationalize customers paying up front for systems that have failed to manifest. The company has showed a willingness to digitally remove content on vehicles entering the secondhand market — to the chagrin of sellers and those taking possession of a freshly neutered automobile. Meanwhile, Volkswagen has deemed adhering to the launch date of its ID.3 electric hatchback more important than having all the software bugs worked out — with the assumption being that they’ll just be fixed later.

Our cursory assessment on over-the-air updates has been that they seem to possess countless opportunities for the industry to innovate and/or take advantage of customers. And it’s the main reason we’re not celebrating Ford’s recent announcement that the Mach-E will be equipped to receive OTA updates quite as loudly as other outlets.  Read More >

By on May 12, 2020

Uber Technologies has reportedly made an offer to buy Grubhub — a food delivery service that links local restaurants directly to customers via a convenient app. Considering Uber Eats is as unprofitable as the company’s core ride-haling business, dropping a bunch of money to acquire a similar business seems silly… until you realize Grubhub is pretty much the only food-delivery outlet to occasionally turn a profit.

Buying up the only legitimate threat to your side business could be wise, even if it’s also somewhat monopolistic, but large, unprofitable tech entities with slick-sounding business plans and massive stock valuation seem bulletproof right now. They can buy up whatever outfits they want and nobody bats an eyelash until an isolated incident pops up that the media can temporarily harp on.

Even with the coronavirus rattling Uber’s share price in March, with ride frequencies more than halved in major metropolitan areas around the globe, its value crept back up in subsequent months. The company also enacted cost-cutting measures, eliminating 3,700 jobs and shuttering 180 driver service centers, with more cuts presumed to follow later this year. While dropping a few billion on Grubhub seems at odds with corporate thriftiness, it may prove beneficial in the long term — especially with investors heaping pressure on Uber to provide evidence it can someday become routinely profitable.  Read More >

By on May 12, 2020

As assembly plants cautiously fire up and buyers slowly return to the new vehicle market in North America, automakers have their fingers crossed, hoping that an increase in demand from frightened first-time buyers will offset lost sales from both the newly jobless and hard-hit rental agencies.

Data out of Europe and China seems to suggest the fright factor is real, but just how much (and for how long) automakers can depend on it really depends on the virus itself. Read More >

By on May 12, 2020

With Hertz concerned with avoiding bankruptcy as the coronavirus pandemic eliminates vacation plans en masse, the company has decided to cancel 90 percent of the new cars it would have purchased this year to refresh its fleet. Minimizing costs for 2020 will be essential for all rental agencies until demand for their services picks up. It’s also indicative of an industry that doesn’t believe life is going to snap back to normal by the end of the month.

We’ve previously covered how badly the economic ramifications of COVID-19 lockdowns have treated car rental groups, but haven’t said much about how they scoop up a large number of vehicles from manufacturers every year — helping to pad their annual volumes. Hertz held roughly 567,600 vehicles in its U.S. fleet and 204,000 in its international unit in 2019. Under normal circumstances, those cars would be rotated out in favor new models after spending a little over a year servicing customers. But Hertz will only need 10 percent of that number this annum, with the distinct possibility of other rental agencies taking similar actionRead More >

By on May 12, 2020

Image: FordThe arrival of a reincarnated Ford Ranger in 2019, along with the debut of the Jeep Gladiator, caused midsize truck market share to climb to a 13-year high in America’s pickup category. In fact, over the span of six years, midsize trucks nearly doubled their share of America’s truck market.

The primary cause of those market share gains, the new Ranger, ended its abbreviated first sales year on the midsize podium roughly 33,000 sales back of the Chevrolet Colorado.

In the early days of 2020, however, the Ford Ranger is running nearly dead even with the Colorado. But no longer is the Ranger driving the midsize pickup truck market forward. The segment’s share of the truck market is backsliding.  Read More >

By on May 12, 2020

The ongoing coronavirus pandemic only reared its spiky head at the tail end of the fiscal year, but the disruption to automakers was strongly felt. In a new vehicle market that was largely cooling off, the impact of fewer sales and idled plants was immediate.

That said, the virus didn’t spread the damage evenly. Read More >

By on May 12, 2020

Toyota, the automaker that regularly jousts with Volkswagen for the title of World’s Largest Automaker, expects its finances to take a major hit this year. A solid blow, but not a knockdown punch.

With sales down severely and production depressed across the globe, Toyota envisions an 80-percent profit drop for the current fiscal year. Read More >

By on May 12, 2020

tesla factory fremont, Image: Tesla Motors

Furious over a decision by county officials to keep all non-essential businesses offline until the end of the month, Tesla CEO Elon Musk announced late Monday that his Fremont, California assembly plant is opening up anyway.

The move comes two days after the automaker filed a lawsuit against Alameda County. In it, Tesla called the county’s order unconstitutional and in violation of California Governor Gavin Newson’s statewide return-to-work mandate. Should county officials call in the cops, Musk wishes to be the only one in cuffs. Read More >

By on May 12, 2020

Image: 1994 Toyota Previa

Some segments and roles just don’t mix. While unfavorable bodystyles and vehicle sizes can be kitted out for sport or luxury, perhaps even succeeding in their mission, sometimes a vehicle’s basic fiber — its core identity — proves an impossible match for its newfound mission.

Sometimes a car is too ponderously large for serious muscle car competition (Mercury’s bargelike, Marquis-based Marauder X-100) or too small and basic for well-padded luxury transport (the earliest Chevrolet Cavalier-based Cadillac Cimarron). Like a dumb-as-rocks linebacker donning a tux and attempting to make conversation at a literary society soirée, these vehicles didn’t fool anyone.

Now, what about the lowly, plebian van? Read More >

By on May 11, 2020

Motorsport hasn’t been particularly engaging of late. Formula One seems to have lost the ability for a scrappy upstart to snatch victory away from a more-established team in even a single race and constant rule changing hasn’t helped anything. NASCAR, which intentionally tries to run much closer races, has similarly sabotaged itself by trying to obtain mass appeal. Both also suffer from a deficit of strong personalities piloting the vehicles and cars that are arguably much easier to drive than their forbears, making for fewer wild moments and less serious injuries.

All of this has sent your author back into the loving safety of the World Rally Championship and World Endurance Championship (along with MotoGP). However, the latter form of motorsport may be in danger of losing the oldest race in its playbook — the 24 Hours of Le Mans. While not yet marked for death, the event saw Porsche pull out last week. Subsequent reports indicate that Chevrolet is doing the same; as usual, the coronavirus is behind it all, and it does not bode well for the race’s long-term health. Read More >

By on May 11, 2020

Spending the last three months chronicling every every single cancellation related to the coronavirus hasn’t been any more enjoyable than reading about it. And, while we apologize for putting you though that, there honestly isn’t much else to report on when every manufacturer on the planet suddenly enters into a panicked lockdown. Thankfully, we seem to be nearing the end of being forced to issue updates on the latest cancelled soirée you had your hopes set on attending.

Despite automotive trade shows being canceled in Detroit, Geneva, and Paris this year, the Specialty Equipment Market Association (SEMA) show scheduled for November is still on. We may also see the New York Auto Show, which was rescheduled, take place in August — assuming the Javits Center remains underutilized for COVID patients through the summer and NYC doesn’t see a sudden spike in infection rates. However, SEMA is the first major event that seems like a sure thing in the automotive realm and, boy, are we glad to hear it.  Read More >

By on May 11, 2020

FCA sign, Image: Fiat Chrysler Automobiles

The European Union’s antitrust regulators could easily allow the proposed $50 billion merger between Fiat Chrysler and France’s PSA Group to sail onward unopposed… or decide to throw a wrench into the works.

Both companies started funneling the necessary applications to the European Commission back in February, but Monday brought word of a decision date: on or before June 17th. Read More >

By on May 11, 2020

Chinese auto sales grew 4.4 percent last month vs a year earlier, rising to 2.07 million vehicles, according to tabulations released by the government-backed China Association of Automobile Manufacturers (CAAM) on Monday. This is actually better than its preliminary assessment suggested, with the new figure helping put an end to a 21-month slump of declining automotive sales.

Unfortunately for the region, it doesn’t seem to be indicative of a full recovery. In its report, CAAM noted that the rebound may be only temporary. Last month’s figures were primarily elevated by commercial vehicles, which saw record growth at 32 percent (year over year). Passenger vehicles also saw their numbers improve from the month prior, but they still down 2.6 percent in April. The improvement is widely seen as the result of backlogged orders that couldn’t be completed during the most prohibitive period of the pandemic, as well as the Chinese Communist Party ordering more work vehicles to stimulate the economy.   Read More >

By on May 11, 2020

gm

The Detroit Three has something of a problem. Sales of their cash-cow, bread-and-butter full-size pickups hardly waned during the extended pandemic lockdown, and are, as of a week ago, selling just as they had before anyone heard of the coronavirus. And yet the plants tasked with building them still aren’t online.

Automakers that just months ago were concerned with higher-than-average inventory levels now have the opposite problem. Read More >

By on May 11, 2020

Rare Rides has featured a classic Jeep previously, with the Kaiser-Jeep-produced Jeepster Commando. While that model was eventually succeeded by the Jeep Cherokee, today’s Rare Ride was predecessor to the Wagoneer.

Let’s learn about a seven-seat SUV from 1948: the Willys Overland Station Wagon.

Read More >

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