Episode 933 – Rogue Goes Korea, BMW Launches Car Share Program, PSA to Build Toyota Vans
July 23rd, 2012 at 12:00pm
Runtime: 9:04
Amid rising costs in Japan, Nissan is moving production of the Rogue SUV to Korea. The move will better utilize plant capacity at an existing Samsung factory. Following OnStar’s move to launch an OEM car sharing service, BMW is starting its own BMW On Demand service in Manhattan. PSA will begin building commercial vans for Toyota based off current Peugeot and Citroen models. The move is likely an effort to improve the cash flow situation for the ailing PSA. All that and more, plus an in depth look at the 2013 Cadillac XTS.
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Thanks for joining us for Autoline Daily, I’m John McElroy, and here’s what’s happening in the global automotive industry.
NISSAN TO BUILD ROGUE IN KOREA
About the same time that Renault bought Nissan just over a decade ago, it also bought Samsung Motors in Korea. As you know, Japanese automakers these days are moving production out of Japan due to the strength of the yen, so Nissan is now going to move production of the Rogue to Korea. And since the United States now has a free trade agreement with South Korea, all those Korean-made Rogues will be exported to the US. Nissan had considered making the Rogue in the US, but Samsung’s sales in Korea have plummeted 32% so far this year, Ward’s reports. Renault Samsung desperately needed more production in Korea.
BMW LAUNCHES CAR SHARE PROGRAM
More and more people who live in large cities are foregoing car ownership. ZipCar, for example, has built up a business of renting cars by the hour. And now BMW is starting a pilot program in Manhattan to offer rentals from its dealerships. The program, which is already in Europe, is called BMW On Demand. According to Autoblog, the Manhattan dealership will have 100 328i’s in its fleet to begin with and later will include the 7 Series, X3, X5 and possibly the M3 and M5. If all goes well, BMW On Demand will expand to other cities throughout the U.S.
PSA TO BUILD TOYOTA VANS
PSA, the parent company of Peugeot and Citroen, which is in desperate financial trouble, just signed an agreement with Toyota to build light commercial vehicles for the Japanese automaker for the European market. Starting in the second quarter of next year, PSA will provide Toyota with vans based on the Peugeot Expert and Citroen Jumpy. The two will also collaborate on future models that will also be built by Peugeot. GM, as you’ll remember, just bought part of PSA, to help split the cost of developing new models, so presumably it approved of the work with Toyota.
RECALL MADNESS
Wards reports recall numbers have been historically high the past three years. In 2009 and 2010 the number of cars recalled exceeded the number sold by a few million. Consumer groups point to automakers being more proactive and less afraid to issue recalls, while at the same time citing the increasing complexity of modern cars. Toyota leads the league with nearly 850,000 recalls in the first half of 2012, followed by Honda with 713,000. Even Rolls Royce called back 69 cars due to potential water pump fires.
MPG WARS
Just like the horsepower wars raging in the world of high performance cars, makers of hybrid vehicles are in the middle of their own battle over MPG’s. Ford is touting the superior economy of their C-Max Energi compared to its main competitor the Prius V. The Dearborn automaker also is also showing off the C-Max’s 20 mile electric and 550 mile combined range. The C-Max’s electric range is nearly double that of the Prius V’s.
Cadillac was starved of new product during GM’s struggle with bankruptcy. But now it’s coming out with two new cars, the XTS and ATS. Coming up next, we’ll take a look at the bigger one.
2013 CADILLAC XTS
Later this week Cadillac will pull the embargo off the driving impressions of its new small car, the ATS. But before we get to that Andrew Justus shows us what the bigger XTS is al about.
(Today’s Cadillac XTS review is only available in the video version of the program.)
The front wheel drive XTS is available with all wheel drive. It starts at $45,000, but can be optioned up to around $62,000 in the US market.
Before we go, I want to let you know of a great Autoline After Hours this coming Thursday, We’ll be going over to Bob Lutz’s house to hang out with all the cars in his garage. So join me and the Autoextremist, Peter De Lorenzo, along with Maximum Bob, for some of the best insider discussion in the business.
And that wraps up today’s show, thanks for watching, we’ll see you tomorrow.
Thanks to our Partners for embedding Autoline Daily on their websites: Autoblog and WardsAuto.com
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Comments (36)
July 23rd, 2012 at 12:03 pm
TTAC tested out the new ATS and they like it a lot , good news for cwolf
July 23rd, 2012 at 12:13 pm
The mid 80′s FWD Cadillac suffered from rear air suspensions that failed after a few years, I hope this magnetic ride control turns out to be more reliable
July 23rd, 2012 at 12:16 pm
A lot of the car mags have their first ATS reviews online, i.e., Motor Trend, C&D, etc.; John, are they not embargo’d (driving impressions were included).
AAH sounds like it will be ‘dynamite’ show this Thursday; I have a lot of respect for Mr. Lutz so I will be impatiently waiting for this one.
July 23rd, 2012 at 12:24 pm
I hope you guys have the Cohibas to ask Mr. Maximum what he thinks about Europe. I wouldn’t stand too close after a Lotus question.
July 23rd, 2012 at 12:29 pm
GM should call the interiors in their new Caddy’s “Lutz-inspired interiors” cause he has always been a strong proponent of high quality interiors, after all isn’t that where you spend all of your time when you’re around your car, not staring at the exterior.
July 23rd, 2012 at 12:41 pm
The C-Max Energi is a plug-in hybrid. The regular C-Max hybrid is the one that will compete with the Prius V. The C-Max Energi will sort of compete with the Prius plug-in, though the C-Max will be bigger, but more expensive.
Anyway, I’m glad to see some competition in this market segment of “serious” hybrid wagons and hatchbacks. If the the C-Max actually beats the mpg of the Prius V, it should sell well, if it turns out to be reliable. I guess gas will have to start going up again for either to sell well, though.
July 23rd, 2012 at 12:48 pm
Tom McCahill (of Mechanix Illustrated fame)
would approve of the Andrew’s trunk testing
technique, although he’s nowhere near Paul
Whiteman’s weight!
July 23rd, 2012 at 12:54 pm
Just like owners of hi-po cars love to brag and boast about all the performance of their cars, so too the MPG crowd loves to brag and boast about every extra mile they eek out of their ultra-conservative, fuel-sipping rides. Though I personally know only a few, each owner of a TDI Jetta just loves to talk up the MPG they achieved on some long road trip. They love to hear how much less I get and talk up a tree-hugging vehicle I should possess. It is for these friends I cheerfully pass on the road at WOT, and then tell them how much more fun I had with so much less MPG!
July 23rd, 2012 at 1:15 pm
On Friday I met a fellow who reviews cars for some Latin American TV show and magazine and he was testing out the Volt for a week, I asked him what he thought of it and he answered that this was the future of the automobile and he absolutely loved it, had it for 3 days and only used electric power, he was gonna go to Orlando and test it out on a road trip.
July 23rd, 2012 at 1:47 pm
MPG WARS
Are both Ford & Toyota fighting for 1% of the market or 99% of the hot air about hybrids? ’cause most people aren’t buying either one.
Mr. McElroy, can we go back to the muscle car wars, hey! the new Viper is out, can we start a Viper vs Corvette war for the ALMS race before they actually start? You know, a cool war.
July 23rd, 2012 at 1:48 pm
Is the BMW program really a “car share” program like RelayRide or closer to an hourly/daily rental program like ZipCar? It will be interesting to see where they draw the line as far as rental qualifications.
So we have GM and Toyota back together again – in Europe.
There have always been people who prided themselves on the MPG’s they cold elk out of a gallon of gas. Today they have more choices and allies.
The XTS looks like it will be a solid competitor in the luxury segment. I don’t yet know if it will sway Mercedes and BMW fans, but it may attract Lexus and Lincoln Town Car fans.
Had a chance to inspect and test drive a BMW 128 M version with the 3.0L 6cyl. It was a blast! It definately reminded me of a 2002 with more power and creature comforts.
July 23rd, 2012 at 1:50 pm
Yeah, let’s go back to the time when gas was cheap, plentiful and we had little un-employment and we used to manufacture everything we consumed here and no one cared about MPG’s why don’t we?
July 23rd, 2012 at 1:52 pm
Actually every manufacturer should have some kind of rental system so that if you’re gonna spend some serious bucks on a new vehicle, you don’t rely on a 5 min, planned out “test drive” and you can rent the car for a few day, go on a short trip. really get a “feel” for it.
July 23rd, 2012 at 1:58 pm
Because of costs, space limitations, and liabilities, most dealers dropped their rental programs and replaced them with Enterprise, Hertz, or Avis (many with on-site offices). Convincing dealers to go back to these money-losing or break even ventures will be a marketing grenade. It will be easier to get cars into the rental agencies for your dealer base.
July 23rd, 2012 at 2:06 pm
Toyota has a rental program, only one dealer in this area advertises it and has a wide selection of Toyota and Scion models and even run “specials” the other ones cater to customers who have to leave their cars for more than a day or so for service or body work and their selection is limited to Corolla and Camry.
July 23rd, 2012 at 2:06 pm
Sorry to Hear that Nissan was going to build Rogue’s at the Samsung Plant in South Korea for import into the USA. I believe OEM’s should build mass market vehicles in or near the sales market. Why doesn’t Nissan utilize the Samsung Plant to build vehicles for Asian Area Markets and build Rogue’s using US Manufacturing Plants and Labor?
I have been looking for a commuter / around town vehicle for my kid. Chevy Cruze has a five star safety rating which is better than Corolla and Civic. I am glad to see that Chevy is eliminating the cloth insert on the dash and door panels, good move GM/Chevy. However I still do not understand why the Cruze does not have front and rear disc brakes on all trim levels. Also Buick Verrano has a larger displacement engine than the Cruze with nearly 200hp, why not offer the same engine in the Cruze? A Power Driver’s Seat should be stand on all trim levels in the Cruze. Chevrolet once again has too many trim levels for what should be a high volumn vehicle. I would like to suggest that Chevy consolidate the trim levels for the Cruze down to LS/Eco, LT and LTZ (with a 200hp engine option). Also the outside mirrors should all be body color matched because how much is GM really saving with those simple black ones on the Cruze LS? I also feel that the number of wheel choices is excessive. This should also be limited to one choice per wheel size, and should never offer “Silver-Painted Alloy Wheels as is the case with the standard wheel on the Cruze LTZ. Everytime I see that “Silver-Painted Alloy Wheel” option I think “CHEAP”! The Large Chevy Bow Tie on the front twin port grill should be reduced in size to be more tasteful in overall appearance. The function of the windshield in the Verrano seems much better and attractive that those of the Cruze. The Verrano’s wipers clean from being overlapping on the center of the windshield rather than the extreme wiper arm configuration currently on the Cruze. I like to have windshield wipers of the same size cleaning both sides of the windshield. I hope the People at GM/Chevy implement my suggestions.
July 23rd, 2012 at 2:14 pm
For Nissan’s sake, I hope that Samsung is more like H/K than Daewoo, otherwise they’re gonna have issues.
July 23rd, 2012 at 3:12 pm
@16
Nissan doesn’t need to build the Rogue in the U.S because with the new “Free-Trade” agreement with South-Korea, Nissan can build a car with a lot more cheaper labor than in the U.S & don’t have to worry about tariffs (import/export tax), which is saying something ’cause I believe the Nissan plant in the U.S is on a Right To Work state (No Union).
July 23rd, 2012 at 3:41 pm
Do the posts of “012345″ have a familiar ring to them – just asking???
July 23rd, 2012 at 3:56 pm
#16 Lex –
Will pass on your concerns to some people here at GM, but don’t hold your breath. A lot of these issues you bring up are the constant battle between design, marketing and the money guys. At least the LS version of the Cruze HAS alloy wheels, not like the Japanese and Koreans that think it is still acceptable to put hubcaps on a base level car…
July 23rd, 2012 at 4:09 pm
#16,
Regarding trim levels, etc., it’s all about getting people to spend a few more bucks for something that doesn’t add much to the price of a car.
You say power driver’s seat should be standard on a low trim level Cruze? I’m not expecting that to happen any time soon, when a power driver’s seat is still optional on $30K+ BMW’s, etc. I suspect the bigger engine is unique to the Verano to help sell Verano’s, but also to help CAFE. I’m not saying it should be that way, but such is car marketing these days, not just with GM, but with everyone.
July 23rd, 2012 at 4:17 pm
These PSA moves are real head scratchers.
From what I’ve read in the past PSA has some great engineering and very good cars. So whats the problem? In my opinion they lack any kind of foot print outside of France. So if Europe falls, PSA falls with it. That’s not the confusing part, the confusion comes from who’s coming to the rescue – GM and Toyota? Could it be that this is a defensive move by these two contenders for the world sales lead to stop VW from getting all of Europe? The only complainers to these moves is the Germans- http://news.ninemsn.com.au/article.aspx?id=8494796
Any thoughts?
July 23rd, 2012 at 4:21 pm
@19
Familiar like your cousin familiar? My grammar familiar? Youtube’s familiar? That foreign guy I know familiar?
July 23rd, 2012 at 4:22 pm
In reference to #22 or is GM and Toyota vultures waiting for PSA to die so they can pick up the pieces?
July 23rd, 2012 at 4:46 pm
GM should thank BMW for going “soft” with their new models thus allowing Caddy to catch up to them in driving dynamics to the point where the ATS can compete and in some points, beat them at their game.
July 23rd, 2012 at 5:07 pm
AW just posted an evaluation of the ATS at:
http://www.autoweek.com/article/20120723/CARREVIEWS/120729952?utm_source=DailyDrive20120723&utm_medium=enewsletter&utm_term=image4&utm_content=20120723-2013-Cadillac-ATS-drive-review&utm_campaign=awdailydrive
They seem to like it. I checked out the Cadillac web site, and the car has a really wide price range depending on how you equip it. The base prices range from 34K to 47.6K. The one that looks best to me is the 2.0 turbo standard. You actually save money by getting the manual transmission, unlike a lot of expensive and/or sporty cars these days, which often charge the same for a manual if they offer it.
July 23rd, 2012 at 5:24 pm
Yea,it feels good knowing my fav. next wanted car is getting good reviews. However,due to stagnet investment gains and yields on the dollar,I’m thinking about buying our retirement home that would be less than 10 mi. from work. An ATS would blend in well with neighbors,but I’m not certain one would be best serving considering Lake Erie and beach is across the street and a boat would be within walking distance. Now a C-max or an Escape seems more functional. Depends on if the wife keeps her Edge a while longer. I’m sure a good chunk of cash will be spent to make the home we buy our own,so I may have to compromise on my car choice.
July 23rd, 2012 at 5:28 pm
pedro;
Given the fact that your fond of Toyota and have been rather pointed to note domestic flaws,what do you think about the report that your Toyota fav has the largest number of recalls?
July 23rd, 2012 at 5:35 pm
C-Tech: now that GM and PSA has partnered-up, prior shared ventures are nothing new with Toyota and haven’t been for several years. And what PSA is doing with Toyota has nothing to do with trying to be competitive,but only survival of one and profits for the other!
July 23rd, 2012 at 6:00 pm
The $45K starting price is out of range for most folks,but so is $38K for the new Linc. MKZ! Already earned the reputation of nothing more than a gussied-up Ford,I think it is crazy for Lincoln to seek such premium prices without having earned the privilage to consider themseves remaining in the primium market. By now,I’m sure even the devoted Lincoln buyer has become wise and smart enough to move beyond a “once was!”
July 23rd, 2012 at 6:19 pm
Well, cwolf, like the old song goes: “They ain’t what they used to be”
July 23rd, 2012 at 6:30 pm
cwolf, you know as well as I do that cars are only as good as the parts that go into it, and since the parts are not as well made as they once were, you get all these recalls, besides that Toyota used to have “quiet” recalls, I was involved in 2 myself, did not know anything about it, not notified at all, brought car in for an issue and then found out about it.
July 23rd, 2012 at 6:39 pm
pedro,I was just taking advantage of the moment while hav’in some fun with you. I see most recalls are a result of a supplier. In this global economy and one of shared common parts,I doubt any manufacturer can afford to make more of their parts,but they could be more vigilant in the inspection/detection process.
July 23rd, 2012 at 7:29 pm
I remember seeing a report on the news about 3 yrs ago regarding a company that was putting Chinese made auto parts parts in a box labeled “Made In Japan”
July 24th, 2012 at 5:49 am
#25, pedro, you realize that that is a preposterous statement. BMW has been the standard of the segment for 30 years, and even their latest iteration bumped the needle (some), the Audi’s (and now Cadillac) have reached or approached ‘par’; credit to all the ‘marks’ that produce the good stuff.
July 24th, 2012 at 1:15 pm
That new XTX looks good but like its daddy,the Lacrosse,just a little too high on the rear quarter. I wonder if the next derivative of the Lacrosse,the Chev Impala will have a high rear quarter too?