Episode 936 – More Financial Results, Hyundai Drops Sales Forecast, 2014 Mazda6
July 26th, 2012 at 11:30am
Runtime: 8:07
More financial numbers are in today. Volkswagen, Nissan and Hyundai all posted their second-quarter profits. Hyundai dropped its industry-wide global sales forecast for the year because of economic concerns in Europe and China. Mazda is teasing the upcoming 2014 Mazda6 before it debuts next month at the Moscow International Automobile Salon. All that and more, plus a look at how Cadillac is rewriting the book on underbody aerodynamics.
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Hello and welcome to Autoline Daily for July 26. I’m John McElroy and here’s the latest news.
VW POSTS STRONG NUMBERS
More car companies are reporting their earnings for the second quarter. Yesterday the numbers didn’t look so good, today they look a little better. Let’s start with the Volkswagen Group, which sold 2.3 million vehicles in the last three months, up 9.5 percent. That brought in $59 billion in revenue. And VW earned $4 billion in operating profits. Interestingly, Audi accounted for 46 percent of the profits in the VW Group.
NISSAN POSTS MIXED RESULTS
Next up is Nissan, which sold 1.2 million vehicles worldwide in the second quarter. That brought in just over $26 billion in revenue, resulting in an operating profit of $1.5 billion, which represents a 20 percent drop.
HYUNDAI PROFITS UP
And that makes the comparison to Hyundai very interesting. Hyundai sold 1.1 million vehicles or almost as much as Nissan. It raked in $19 billion in revenue, which is less than Nissan because it’s cars are priced cheaper. But Hyundai posted an operating profit of $2.2 billion, which is substantially more than Nissan’s.
HYUNDAI CUTS SALES FORECAST
Speaking of Hyundai, it’s cutting its forecast for global auto sales this year. The company expects about 77.1 million units to be sold industry-wide, a drop of 500,000 units from its previous forecast. Hyundai changed its estimate because of the struggles in Europe and the slowing economy in China.
MARCHIONNE UPSET WITH VW
And Sergio Marchionne is ticked off at Volkswagen. He’s accusing it of waging a price war. He’s quoted as saying “It’s a bloodbath of pricing and it’s a bloodbath on margins.” Marchionne also called for the European Commission to address the continent’s overcapacity problems because the French and German automakers have not done enough to fix the issue.
2014 MAZDA6
You asked for it, Randy Seck, and now you’re going to get it. He’s one of our viewers that wanted info on Mazda’s next-generation midsize sedan. The 2014 Mazda6 is a perky-looking four-door that will take a bow next month at the Moscow International Automobile Salon. It will be the company’s second vehicle to FULLY incorporate Skyactiv engineering. That’s Mazda’s way of optimizing a vehicle’s structure and powertrain to cut weight and improve efficiency. The car will also feature the strangely named i-ELOOP technology, which is a capacitor-based regenerative braking system. It supposedly improves efficiency by 10 percent. As for the design, the front end looks a lot like the recently introduced CX-5, all part of Mazda’s new Kodo styling theme. The complete Mazda6 lineup will be revealed at the Paris Motor Show in late September.
GM MANAGEMENT SHAKE-UP
GM is restructuring the way it develops new product. It’s streamlining the whole process by consolidating three positions into one. In the past, each product program was controlled by a vehicle line executive, a vehicle line director and a vehicle chief engineer. Now one executive chief engineer will be in charge of every product, and they’ll all report to Doug Parks, GM’s newly appointed Vice President of Product Programs.
Speaking of product development at GM, the new Cadillac ATS may have the most interesting and thorough approach to aerodynamics on the underbody of the car. We’ll show you what we’re talking about right after this.
2013 CADILLAC ATS
The underbody of the Cadillac ATS rewrites the book on how you design a car for aerodynamics. They’ve done a more complete job of closing off openings and smoothing out the underbody than I’ve ever seen on a production car. Here’s Larry Craig, the engineering program manager on the ATS, pointing out some of the details.
(The Cadillac ATS aerodynamics report is only available in the video version of today’s show.)
I really like those plastic covers on the bottom suspension links in the rear suspension. I’ve never seen anyone go into that detail to improve underbody aerodynamics. Cadillac says the ATS has a coefficient of drag of .29. That’s pretty good for such a short car. It’s easier to get better drag numbers with a longer car because it allows the aero guys to manage the air better.
Don’t forget that Autoline After Hours tonight where will be at Bob Lutz’s garage. This is going to be a great show as one of the best car guys in the history of the auto industry talks cars with me and the Autoextremist, Peter De Lorenzo. If you can’t catch it live, watch it at your leisure at Autoline.tv or get the podcast at the iTunes store.
And that wraps up today’s report. Thanks for watching, we’ll see you tomorrow.
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Comments (40)
July 26th, 2012 at 11:58 am
I just did a little math, and the numbers broke down for the three reported profits from today’s manufacturers to: VW equaling 6.8%, Nisson equaling 5.8%, and Hyundai equaling 11.6% (ratio of profit to revenue). So a couple questions: what is typical, is the Hyundai number aberrant (due to accounting) or are VW/Nissan performing at subpar?
July 26th, 2012 at 12:36 pm
I don’t have the chops to interpret the profit numbers, given how exchange rates are being skewed by money sloshing out of the Euro and into Yen.
I also don’t know what I’ll do until AAH starts tonight.
July 26th, 2012 at 1:08 pm
While I will not purchase another car from a domestic maker based on past experience, I must say that I am impressed with the work Cadillac is doing on their cars…They probably have a way to go to get back to “Standard of the World”, but they are working on it in the engineering areas…Two ideas, though, would be to update their designs (getting pretty “long of tooth” at this point), and how ’bout a new Northstar??
While on the topic of GM, the Corvette just keeps getting better and better, even with pushrods, and seems to be getting some world recognition…And, the Cruze and Cruze diesel look to be pretty nice (if they are screwed together well)…The Buicks are actually my favorites at GM, though, because they are looking to be on track to be “world class” one day soon…
Yes, I am leary of GM quality; however, I have to be honest and give credit where credit is due…Kudos to GM for their recent successes!!
July 26th, 2012 at 1:34 pm
To aliisdad: Curious as to what you think the past Cadillac “Standard of the World” entailed that is missing today. And what’s with the Corvette push rod hang-up? Check out ALMS results – the car is so strong it has to be seriously ballasted and intake air restricted so the OHC competitors can keep up. There is more than one way to “skin a cat.” So, what does “World Class” really means these days? More of an obsolete term – everyone doing competitive products. Buy a Buick!
July 26th, 2012 at 1:43 pm
re; # 3—&4-
1908 Cadillac became the first American automaker to win Great Britain’s prestigious Dewar Trophy, given to the manufacturer making the year’s most significant automotive advancement. This happened after a demonstration during which three randomly selected Cadillacs were disassembled, their parts scrambled, and reassembled using only simple hand tools. An immediate 500-mile demonstration run proved the ready interchangeability of each car’s 721 standardized component parts. Soon after, Cadillac adopted the slogan, “Standard of the World.”
July 26th, 2012 at 1:44 pm
Given all the VW brands I wonder how much in profits did Porsche contribute to the VW bottom line? Given the number of brands VW has and the 46% contribution by Audi alone, you have to wonder if it worth it to keep them all?
The new Mazda6 looks much better.
Is it me or does GM seem to “shake up” management every 6 months?
Getting rid of the front spoiler is a great idea for looks and it reduces the damage caused by drivers hitting curbs, etc. with them. There are so many cars with that piece of rubber hanging off the front.
July 26th, 2012 at 1:51 pm
Let’s face it fellas, Cadillac lost its “Standard of the World” for sure in the 1980′s with the down-sized fwd DeVille / Fleetwood lines, Cimarron, and Allante. Welcome back to “World Class” Cadillac.
July 26th, 2012 at 3:07 pm
I would love to hear how GM arrived at that exhaust system design on the new ATS. Strange….
July 26th, 2012 at 3:48 pm
@ 1. Chuck Grenci
My numbers agree with yours and the breakdown per unit (vehicle) of production is on average for the following: VW $1739.13, Nissan $1250.00 and Hyundai $2000.00.
July 26th, 2012 at 3:51 pm
These Aero Panels under the ATS similar to the ones that recently caused fires under the Chevy Cruze ECO that had recent oil changes?
July 26th, 2012 at 4:00 pm
@ 6. C-Tech
I would love to see OEM get rid of those front spoiler air dames that hit those damn parking slot concrete stoppers. I would rather see a flush mounted universal black front aero panel screwed from underneath the from bumper which propects the front edge of the bumper and extends under the vehicle to channel air under the vehicle for improve aerodynamics. In this way if you hit one of those damn concrete stoppers and damage the protectors it is easily replaced without having to go to a body shop.
July 26th, 2012 at 4:03 pm
@ #10
The panels under the ATS shown look different from the design which is recalled on the Cruze. There is more space under the oil pan.
July 26th, 2012 at 4:04 pm
Check it. I just went to the Cadillac website to build my ATS, but I learned something too. GM got the website thing down; this site is snappy and clear. They even ask you to take a survey so they can improve the site.
I learned also that the warranty on the ATS aims to out do BMW, Merc, and Audi. These guys have confidence.
All this combined with the obvious attention to detail I see when I look at those aero covers for the rear suspension link on the ATS, makes me sit up.
July 26th, 2012 at 4:08 pm
That is all fine and dandy, but the fact remains that those who seek a German engineered luxury car, won’t even consider a Cadillac. Perception takes decades, not years, to change.
July 26th, 2012 at 4:08 pm
Hi John, love the show and try to view it each day, however, your comment about you never seeing anything like the new ATS Cadillac underbody, I have to say my 1995 Mazda Millennia comes very close to what the Engineers at GM have done except that Mazda did it 17 years ago, with the exceptions for a few improvements the GM Engineers have added.
July 26th, 2012 at 4:09 pm
Wow that muffler on the Caddy is huge . When I 1st saw it I thought it was the gas tank.
July 26th, 2012 at 4:27 pm
14 Maybe people who have experienced German reliability and maintenance costs would consider a Cadillac. Living with the hottie is different than dating.
July 26th, 2012 at 4:44 pm
16, sensible folks like you and me think differently, I find a lot of these German brand fans lease rather than buy, they don’t want to deal with the 3 or 4 yr “itch” or in many cases “pain”
July 26th, 2012 at 4:49 pm
Mr. McElroy, Am I correct to assume that since you mention the VW Group, which is 9 different manufacturers including industrial vehicles; you also meant Nissan as Nissan/Renault and Hyundai as Hyundai/Kia?
Also, forgot to mention that Audi bought Ducati, so that’s 10 for the VW Group. How much of Ducati’s sales is in that 46% of Audi?
July 26th, 2012 at 4:50 pm
ATS underbody aero panels unique? Original? New to Caddy? Give me a huge break! My firends at Porsche have been doing this for 20+ years! More of Caddy’s insidious attempts to get current with their technology and pretend they are state-of-the-art!
July 26th, 2012 at 4:50 pm
You’re giving me too much credit, Pedro. I would get arrested so fast in a fast car. I still have wounds from the time I drove an RX7, having to keep the speed down. (didn’t I admit here once, the time I got stopped for passing a Viper on the NJTP at ~90mph?)(btw, exit 4 is where you want to keep it down. That’s where the State Trooper station is)
July 26th, 2012 at 4:58 pm
17. I agree with you. Most German Brand Fans lease rather than buy. In my neck of the woods, mostly all luxury or near luxury drivers whether Domestic, Asian or European rather lease than buy so that they have full factory warranties for the lease period avoiding the headaches of ownership and always driving the latest and/or greatest very three years. This also keeps down the cost of ownership and avails you to the latest technology. Worry Free Driving is the objective and if the vehicle is a LEMON you are out of it in no time.
July 26th, 2012 at 5:17 pm
I have yet to see an auto body under-panel that has an easy access for changing oil. After removing either the filter or pan plug,oil always gets in the remaining panel.
If GM took every opportunity to reduce drag, using these under-panels,does this mean I can feel certain the car will get 33 mpg and not the usual 1-2 mpg less?
July 26th, 2012 at 5:27 pm
21 Lex, aren’t you near White Plains NY? Please unload on the local BMW driver, if you would.
July 26th, 2012 at 5:33 pm
cwolf: when they engineer cars, the last thing they think of is the lowly tech that has to remove a hundred screws and panels to do simple maintenance. Those Caddy engines are very well covered from the top and now from the bottom, overheating anyone?
July 26th, 2012 at 5:44 pm
I actually noticed how the transmission was exposed, and heat shields were attached to the body. I bet the heat from the drivetrain is carefully managed from the rad through the engine to the tranny. The aerodynamics inside the cars has always interested me, especially in F1. Balancing what goes into the body against what goes around, now that’s cool.
July 26th, 2012 at 5:46 pm
@ #19
I believe what is meant in the report is that Caddy is taking full advantage of the aero benefits in designing their underbody pans in a mass market vehicle that niche and sports car builders have been doing for years. It is a new level of attention to detail for Caddy now. They are raising their game.
July 26th, 2012 at 5:49 pm
@ #24
Everybody’s got some sort of engine cover now and no one is excessively overheating. The real question is will the bean counters catch up to engineering and de-content these vehicles in the future?
July 26th, 2012 at 5:54 pm
Really John,
In regards to Caddy aerodynamics you HAVEN’T seen what they did on the Nissan GTR???? Seriously, you must have seen Mizuno’s handywork and attention to detail. The work in regards to TOTAL aerodynamics (function over form) puts the engineers of my C6 Z06 and pretty much any GM vehicle to great shame. It seems that Nissan Engineers, not Cadillac wrote the book on aerodynamics as seen when they developed and manufactured the GTR. The ATS has come to the market with too little too late. I’d rather have a proven vehicle like the ISF or IS350, C63 AMG, M3. These statements come from a former Cadillac owner and current Z06 owner.
July 26th, 2012 at 5:57 pm
The most idiotic oil filter placement award goes to the GM designers who put the 3.6L V6 in the Traverse / Enclave ? Acadia, followed by the V8 Toyota Tundra.
July 26th, 2012 at 6:15 pm
Those of you who know more than me about this, answer me this: why do they cover up engines with plastic panels usually with the brand or insignia on them while most classic cars proudly show their power plants and some even have see-though hoods so people can admire their engines
July 26th, 2012 at 6:17 pm
C-tech have you seen the Corolla 1.8 you need to be a contortionist to get in there. The 2.0 Camry I had was the easiest ever!
July 26th, 2012 at 6:19 pm
My son’s Mazda3 once had a cheap plastic panel, beneith the engine,held up with cheap plastic screws. The panel even was incorporated into the wheelwells,thus making removal more difficult on a very low car. It became damaged in no more than a year and the mpg’s haven’t suffered one iota after I shit-canned it!
July 26th, 2012 at 7:19 pm
C-Tech, have you ever changed the oil filter placement on an older Miata? HS, you need to put the car on a lift, turn the wheels, then reach up and cough.
July 26th, 2012 at 7:33 pm
“…ever checked the oil filter placement….”. sorry
July 26th, 2012 at 7:43 pm
#30,
I’ve heard that part of the reason for the covers is that they help reduce cabin noise from the engine.
July 26th, 2012 at 9:42 pm
From the engineering propanganda dept. these engine covers help reduce the noise tranferred to the interior. The bottom covers (belly pans) help reduce aero drag and wind noise. Personally I belive BMW and Mercedes set the standard for underhood marketing and beautiful valve covers with the brand imprinted on them. The plastic covers just make the tiny engines look bigger and add style for people who only look under the hood when they buy the car. To me most V-8 and straight six engines can be beautifully styled without covers. Insulation on the hood should handle engine noise. Thank you all for the heads up on other models. We don’t get any Miata trade-ins so I can’t comment on the oil filter placement. The lube rack sees most of the Corollas.
July 27th, 2012 at 11:36 am
I never did like engine covers that hide the engine from view, even if they have some minor functionality. I think the first I saw such a cover on a Benz, which really seemed out of place, considering previous Benzes I’d seen had pretty engines, with cast, rather than stamped cam covers, etc.
July 27th, 2012 at 11:51 am
Some of these cars with their ginormous engine covers barely need a hood at all, Lexus LS comes to mind!
July 27th, 2012 at 4:25 pm
#29, Chris Chow,,, is this the Chris Chow who has a Buick Grand National that was running in the low eights in the quarter mile???? A most awesome car. I haven’t seen or heard much about it in a while. It was running a 350 Chevy engine with twin turbo chargers. Putting out over 1000 hp.????????????????????