Lordstown Motors has gone from the savior of Ohio to just another blowhard electric vehicle startup. Last year, it became the focus of investment research firm Hindenburg Research and an incredibly damning report that accused the company of fraudulent behavior. The paper cited thousands of non-binding, no-deposit orders and was proven right a few months later when the startup announced it didn’t actually have enough money to commence commercial production. By June, Lordstown was under investigation and losing top-ranking executive with nothing to show for itself other than a factory it purchased from General Motors at a discount where it installed a pointless solar panel array. The company said it would be selling the plant to Foxconn Technology Group (Hon Hai Technology Group) in October, along with $50 million in stock, with the plan being to make the Taiwanese firm a contract assembler for the Lordstown Endurance pickup.

It’s going to need that money too because GM is severing ties with the startup and has confirmed it offloaded its remaining stock over the holidays. While the Detroit-based automaker only held about $7.5 million worth of shares, it still represented about 5 percent of Lordstown and continued support of a business that looked to be foundering.  (Read More…)

It’s no secret that Aston Martin is in financial trouble. It went into 2020 in rough enough shape to require extensive restructuring, making the subsequent years more about survival than growth. Executive Chairman Lawrence Stroll has said he remains committed to saving the company and reviving its defunct Formula One team on more than one occasion since then. But he is clearly fighting an uphill battle.

Despite having achieved a few sales targets after spending most of 2020 shut down, Aston Martin continues facing product delays and is losing talent faster than it can replace it. Some of this has been attributed (fairly or not) to CEO Tobias Moers, who took over for Andy Palmer in August of 2020. But it looks like Moers may be leaving the company as well if the latest reports are to be believed.  (Read More…)

We’ve got more bad news about Lordstown Motors. Following several volleys of bad mojo ending with the departure of its upper management, the EV startup has informed the Securities and Exchange Commission (SEC) on Thursday that it doesn’t have any binding purchase orders or commitments.

That’s not what the company was saying several months ago. Hell, that wasn’t even what it said earlier this week when President Rich Schmidt told the Automotive Press Association the company had enough orders to support two years of production. Since the ability to sell automobiles is a somewhat relevant factor in an automaker’s long-term success, we’re getting concerned that Lordstown isn’t long for this world.  (Read More…)

Jaguar Land Rover has canceled several planned vehicles and opted to reassess its Modular Longitudinal Architecture (MLA) after the company started fretting about the probability of unmet emissions requirements. Chief Financial Officer Adrian Mardell addressed investors on Friday to explain that all subsequent development of the platform would be postponed indefinitely. Ironic, considering MLA was supposed to be flexible enough to facilitate electrification and putting a lid on it means canceling the planned all-electric Jaguar XJ sedan and at least one unnamed Land Rover.

Rather than its intended purpose of underpinning all JLR products by 2025, the MLA platform is now said to be used exclusively on Land Rover’s larger SUVs. Meanwhile, the manufacturer has decided to prioritize its battery-focused Electrified Modular Architecture (EMA) as it tries to place a greater emphasis on electrification moving forward. Sadly, that means the $1.4 billion it spent in service of advancing MLA and finding a new partner that can help make Jaguar all-electric by 2025.

(Read More…)

As I scanned my social media feeds last week, I noticed a fair amount of journalists posting that they were headed to the Tokyo Motor Show on Mitsubishi’s dime. While automaker-funded junkets to an international auto show aren’t uncommon – I’ve been on such trips myself – the fact that it was Mitsubishi footing the bill for international airfare and hotels in one of the world’s most expensive cities raised my eyebrows.

Don’t worry, this isn’t a screed about journalistic ethics and press junkets. I only mention it because automakers don’t spend that kind of money on media without a purpose. They have something in mind that they want covered, and while they won’t attempt to dictate that the journalists report only glowingly about what they’re doing (at least I hope not), they will expect coverage, even if it’s neutral or negative, from those they flew out there. All publicity being good publicity, that sort of thing.

(Read More…)

Midsize car sales volume decreased by nearly 200,000 units in the United States during the first-half of 2017.

Year-over-year, that 18-percent decline was caused by virtually every member of America’s midsize sedan fleet. Escaping unscathed, on its own, was the Volkswagen Passat, though Passat sales are significantly lower than they were in 2012, 2013, 2014, and 2015.

Aside from the Passat, midsize cars are selling much less often this year than last at every competing automaker; from the top-selling Toyota Camry to the slow-selling Mazda 6, from the all-wheel-drive-optional Ford Fusion to the all-wheel-drive-standard Subaru Legacy; from the new-last-year Chevrolet Malibu to the never-again-new Chrysler 200.

Most automakers, however, are blessed to possess similarly priced compact crossovers that are making up all, much, or some of the slack. (Read More…)

The Volkswagen Passat has a roomie.

Production of the Volkswagen Atlas, Volkswagen of America’s first three-row SUV and the automaker’s first three-row vehicle since the Dodge Grand Caravan-derived Volkswagen Routan fled the scene in 2014, began earlier this year in Chattanooga, Tennessee, previously known as the Passat’s factory.

The first 1,610 copies of the Atlas were sold in May 2017.

Volkswagen, which built the Tennessee assembly plant as part of a goal that would see the brand selling 800,000 vehicles in America per year by 2018, originally intended to build 150,000 vehicles annually in Chattanooga. Only half that capacity was used last year.

If the Volkswagen Atlas becomes the hit the Volkswagen Passat never was, what might that say about the North Americanized Volkswagen Passat’s future?  (Read More…)

Why did America’s passenger car market tumble 11 percent in April 2017?

Midsize cars deserve much of the blame.

Why is America’s passenger car market down 12 percent through the first four months of 2017?

Midsize cars deserve most of the blame. (Read More…)

Reaching the end of the line before an all-new 2018 model launches, the outgoing Toyota Camry is — quite predictably — losing sales. After all, the auto industry’s total sales volume is shrinking. Passenger cars, in particular, are paying a price. And the midsize segment is stumbling all the more so. With all these factors contributing, of course the Camry is shedding volume.

Aged, outdated, and antiquated, the Toyota Camry seemingly has the most to lose. Yet despite a 4-percent year-over-year U.S. sales loss in March 2017 and a 13-percent decline through the first-quarter of 2017, the Toyota Camry is gaining heaps of market share in America’s midsize sedan segment, not losing it.

That’s because the cars that are most to blame for the midsize sedan segment’s rapid decline don’t sit at the top of the leaderboard, but rather hail from the JV squad.  (Read More…)

Aside from the Volkswagen Passat’s 40-percent year-over-year uptick, every automaker competing in America’s midsize sedan segment suffered from declining volume in February 2017.

The midsize car category tumbled 19 percent, a loss of more than 34,000 sales.

February 2017 marked the twelfth consecutive month of year-over-year declines for midsize car sales in America.

This is the ninth edition of TTAC’s Midsize Sedan Deathwatch. The midsize sedan as we know it — “midsizedus sedanicus” in the original latin — isn’t going anywhere any time soon, but the ongoing sales contraction will result in a reduction of mainstream intermediate sedans in the U.S. market. 

How do we know? It already has.

The Passat’s exceptional year-over-year uptick by no means represents healthy volume for the big Volkswagen. But the bigger story from February’s results was the horrific nosedive performed by Detroit nameplates: one discontinued nameplate, one of the older members of the midsize fleet, the newest member of the midsize fleet, and one semi-premium niche player. (Read More…)

The Suzuki Kizashi‘s brief tenure came to an end in 2013. 2014 was the last year Mitsubishi produced Galant sales in the United States. 2015 marked the Dodge Avenger’s terminus. The Chrysler 200’s death was announced in 2016.

Will 2017 be a period of further contraction in America’s midsize sedan market?

This is the eighth edition of TTAC’s Midsize Sedan Deathwatch. The midsize sedan as we know it — “midsizedus sedanicus” in the original latin — isn’t going anywhere any time soon, but the ongoing sales contraction will result in a reduction of mainstream intermediate sedans in the U.S. market. 

How do we know? It already has.

If January 2017’s results are anything to go by, it’s going to be a very ugly year for midsize cars in the United States; sales tumbled by more than a fifth in January 2017, a year-over-year decline worth 30,000 lost sales. (Read More…)

As recently as 2014, U.S. sales of midsize cars were on the rise, albeit marginally. As recently as 2015, U.S. sales of midsize cars were shrinking only modestly, falling less than 2 percent compared with 2014.

In 2016, however, U.S. sales of midsize cars decreased by more than 250,000 units — an 11-percent drop that exceeded the rate of decline witnessed elsewhere in the car market.

This is the seventh edition of TTAC’s Midsize Sedan Deathwatch. The midsize sedan as we know it — “midsizedus sedanicus” in the original latin — isn’t going anywhere any time soon, but the ongoing sales contraction will result in a reduction of mainstream intermediate sedans in the U.S. market. 

How do we know? It already has.

The midsize sedan segment continues to be a hugely consequential part of the car market and the overall new vehicle market, but the segment has greatly contracted over the last few years — including the demise of yet another nameplate in 2016.

That makes 2017 the best time to replace the 15-time best-seller with an all-new model. (Read More…)

U.S. sales of midsize cars remained on an even keel in November 2016, decreasing by only one-tenth of one percent compared with November 2015.

But make no mistake: the midsize car category still took a hit in November. While volume remained level, the segment’s share of the overall U.S. new vehicle market fell below 12 percent last month, the fifth consecutive November in which midsize market share has declined.  (Read More…)

There will always be a place in the American market for the conventional midsize sedan.

Despite harsh declines in recent months, consumers are still on track to register more than 2 million midsize cars in calendar year 2016. In fact, a handful of nameplates — Accord, Legacy, Malibu — are attracting more buyers this year than they did in the first two-thirds of 2015.

But U.S. sales of midsize cars are now falling with a special kind of speed, plunging 26 percent in August, a loss of nearly 58,000 sales over the span of just one month. (Read More…)

“They go on loving you just the same, but somebody’s dying.”
Not Chris Isaak – 1995.

Minivans crumbled as the three-row utility vehicle took over, leaving a handful of nameplates to each produce healthy volume. TTAC’s claim earlier this week? Midsize sedans are now following the same track, crumbling as the smaller two-row crossover takes over.

Already, America’s fleet of midsize sedans is decreasing in size. We expect to see a greater reduction in the number of midsize offerings soon.

Midsize sedans desperately want you. But you, oh collective American consumer, are consistently desirous of fewer midsize sedans. The current crop of midsize nameplates does not uniformly possess the mettle to survive the current downturn, a downturn which quickly grew more severe last month.

U.S. sales of midsize cars plunged by 31,000 units in July 2016. (Read More…)