July 23rd, 2012 at 12:00pm
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.
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.
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.
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.