The financial chicanery of a few automotive dealerships continues apace, with a group of Nissan and Hyundai stores finding themselves in several million dollars’ worth of hot water.
Reps for the captive finance arms of those two brands allege that five dealerships owned by auto retail veteran Michael Saporito and former NFL linebackers Jessie Armstead and Antonio Pierce sold nearly $10.5 million worth of vehicles out of trust. Nearly a hundred machines are allegedly missing, as well.
There’s a good reason why insurance premiums are rising like your author’s blood pressure while scanning his Twitter feed, and it’s not just because providers really, really like making money. (They do, of course.) Average repair bills in the U.S. rose by about a third in the past three years, mainly due to the proliferation of safety technology, and insurance premiums followed. Country-wide, premiums rose 7.9 percent in 2017.
Cameras, ultrasonic sensors, and radar sensors tend to be located in areas of the vehicle most prone to damage, even in even low-speed collisions, and sturdy, exposed 5 mph bumpers are unfortunately a thing of the past. Many would prefer to see all automakers design their cars with repairs in mind, thus lowering future costs and premiums.
As an example of the headache of repairing technology-festooned vehicles, behold the average front-corner collision repair cost of one rare Korean sedan. Read More >
After hiring financial advisors earlier this year, a move many believed was a precursor to an initial public offering (IPO), Volvo parent company Geely now claims the waters are too choppy to float any shares in the resurgent Swedish automaker.
First reported by the Financial Times this past weekend, the Chinese holding company says there’s too many uncertainties and headwinds in the industry right now. Thus, no Volvo stock for you. The biggest uncertainty is the one that’s keeping automakers on edge the world over. Read More >
Guilty pleasures. Look, we’ve all got ’em. No, not those. I’m talking about cars and trucks we like … that we’re not supposed to like.
Oddballs? Weirdos? Flat-out strange? Let me give you an example.
President Donald Trump jumped on Twitter Sunday morning to rattle off a series of musings I couldn’t have cared less about. However, mixed in with the rest of them, was a reference to last month’s news that Ford abandoned its plans to import the Chinese-built Focus Active into the United States.
“‘Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs,'” Trump said in reference to a CNBC article from August. “This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!”
Whether or not you support the president, he has made a genuine effort to convince automakers to do their manufacturing within the United States. However, his comments on the matter make it seem as if he’s a tad confused on how things actually work. Perhaps we can attribute his statement to an unbridled optimism or a tongue-in-cheek jab at Ford. Otherwise, the only explanation is that he doesn’t have the best understanding of what’s happening with the industry — which would be mildly alarming. Read More >
While we’ve bashed them for being one of the most expensive ways to acquire a vehicle, automotive subscription plans have becoming increasingly popular among premium nameplates. General Motors already has one exclusively for Cadillac but it appears that it’s setting up another for its less illustrious brands.
Late last month, the automaker filed a trademark application to register the name “DriveScription” with the United States Patent and Trademark Office. The document clearly states that the term will be used in association with the Goods and Services categories of automotive subscription services, rental services, and vehicle sharing. Considering that Maven already handles most of the short-term rental and ride-sharing aspects of GM’s new mobility services, DriveScription is almost certain to be the mainstream equivalent to Book by Cadillac. Read More >
If you noticed your neighbor adding a glistening new Genesis model (the midsized one or the bigger one) to their driveway in the past month, you’re a member of a very small group.
Genesis, the luxury marque born of Hyundai, didn’t sell many vehicles in August, but that’s all part of the plan. The brand’s executive director claims there’s less than a month’s worth of vehicles currently in the U.S., but once those ships arrive, look out. Actually, a better way of phrasing that is: “prepare yourself for things to occur in a gradual and measured fashion.” Read More >
Big Tesla news inevitable comes at odd times, usually at the very end of the week, and most often at night — at least here on the East Coast. And so it was that late Friday afternoon, following another bizarre week of Elon antics (and two high-profile departures), Tesla CEO Elon Musk upset the negative news cycle by announcing a shakeup of his company’s upper ranks, including the appointment of a president of automotive.
What does a president of automotive do? A hell of a lot, it seems. Besides overseeing all of the company’s automotive operations, newly promoted Tesla veteran Jerome Guillen must also keep the sometimes dodgy supply chain running smoothly. His other big role involves removing stress from Musk’s life. Read More >
Not concerned with offering all-wheel drive, Nissan’s recently launched Kicks subcompact knows its ground clearance, styling, and low, low entry price is what customers will take notice of, not its perceived off-road prowess. It doesn’t have any (though on dry and flat boulder-free trails, it would probably do fine).
After Nissan unveiled its pricing in the U.S. and Canada, we noticed that the normal north-of-the-border markup was missing in action. As a result, buying a base Kicks S in Canada is just eight bucks pricier than an American purchase ($17,998 vs. $17,990). Both Canada and the U.S. love their big trucks, I said at the time, but this little ute will do better north of the border.
It’s always nice to be proven right. Read More >
Volkswagen Group will be staring down the barrel of a courtroom next week, which isn’t anything new. The automaker’s investors want 9.2 billion euros ($10.7 billion) in compensation after arguing the carmaker should have informed shareholders about a diesel emission scandal before regulators got the word out in 2015.
The lawsuit groups 1,668 individual claims, primarily those brought in by VW’s institutional shareholders, who previously accused the automaker of failing to inform investors about the scope of a scandal. Volkswagen’s excuse has always been that top brass had no idea the issue would be serious enough to cost the company 27.4 billion euros in punitive fines. But new evidence continues to emerge that upper management was well aware of the defeat devices’ existence. Read More >
The one and only styling refresh bestowed on Tesla’s Model S involved the removal of its phony grille, with CEO Elon Musk claiming the blacked-out nose had done its duty in luring — and lulling — nervous customers. The subsequent Model X went without, and the Model 3 looks like that masked disfigured girl in Eyes Without a Face.
Mercedes-Benz isn’t on the same page. Perhaps believing that Tesla buyers tolerate the lack of grille only because the vehicles are Teslas, the German automaker has vowed to pretend there’s an internal combustion engine and radiator behind the face of each of its electric vehicles. Read More >
BMW has chucked a new M Performance variant into its X2 range, as no vehicle in the automaker’s lineup should ever have to go without the thirteenth letter of the alphabet. Fortunately, the brand’s decision to install a range-topping X2 also involves installing the most powerful four-cylinder engine in BMW’s history. Read More >
Today’s installment of “This Week in Elon” sees the Tesla CEO appear on the top-rated Joe Rogan Experience podcast and partake in drug consumption that’s legal in the state in which it was filmed. One hopes Musk didn’t pile into his Model S afterwards and drive away while baked.
Normally, what happens in an executive’s private life remains private until it hits the papers ahead of an impending trial, or perhaps fills the pages of a tell-all bestseller. This being Musk, however, questionable antics seem to occur all the time, usually in a public forum, and shareholders, analysts, and no doubt the company’s board aren’t too pleased with it.
It’s not on the same level as Lee Iacocca showing up on the Merv Griffin Show and railing a line of blow, but Musk’s podcast appearance, combined with two high-profile departures, sent Tesla shares tumbling. Read More >
A lengthy Medium post penned by Darren Palmer, director of product development for Ford’s Team Edison, went live yesterday, no doubt at the request of Ford PR types and company brass. (It was shared on Ford’s media page.)
In it, the Ford product veteran goes on about the challenges facing his team of electric vehicle developers, mentioning, “The stakes are high.” Are they ever. With 16 fully electric vehicles on the way by 2022, joined by 24 electrified vehicles, that’s a heavy plate to carry. Despite having nearly 20 years of hybrid vehicle exposure under its belt, large swaths of the buying public remain confused by electrified powertrains (“Will my PHEV leave me stranded with an empty battery?”) and anxious about EV range. It takes time — a lot of time, apparently — to change hearts and minds. The U.S. EV take rate is less than 1 percent of new vehicle sales.
However, what created a splash on Thursday was not the revelation that building and selling EVs to the American public is hard, but the image accompanying the post. Read More >
After the sudden illness of industry titan Sergio Marchionne in late July, Fiat Chrysler enacted some quick changes in order to name a new CEO. Mike Manley, who had helmed powerhouse FCA brands, was installed into the role on July 21st, just four days before Mr. Marchionne’s passing.
Reuters reported this morning that Manley will announce his new team during an event towards the end of this month. Until now, little else has been said about the remainder of FCA’s management roster. In a post-Sergio world, who will head up each of the company’s brands?
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