AD #1489 – OEMs Irk Suppliers, Mazda Teases New Compact Crossover, More Volt Details
October 29th, 2014 at 11:55am
Runtime: 8:39
- Chrysler Cans Quality Exec
- OEMs Say Suppliers Making Too Much Money
- Shortage of Takata Air Bag kits
- AutoNation Suspends Sales of Takata Vehicles
- More Specific Chevy Volt Details
- Mazda Teases New Compact Crossover
- 2015 Dodge Charger – Seat Time
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Suppliers are ticked off at car companies, Mazda teases a sub-compact crossover, and how the Chevy volt will get stronger, faster and lighter. All that and more coming up on Autoline Daily.
This is Autoline Daily for October 29, 2014.
CHRYSLER CANS QUALITY EXEC
After a dismal showing in the latest Consumer Reports reliability survey, Chrysler fired its head of quality, Doug Betts. Obviously, somebody had to be held responsible, but Chrysler was at the bottom of the list long before Betts was hired. Betts spent most of his career at Toyota, where he did so well that Nissan hired him away. But he wasn’t there very long when Chrysler came calling. But Betts was never able to work the same magic that he did at Toyota. Now Fiat-Chrysler is splitting the job in two. Mark Chernoby will head up global quality, as well as keeping his current job as head of product development. Matthew Liddane, formerly the VP of Systems and Components at Chrysler, will now take over as head of quality in North America.
OEMs IRK SUPPLIERS
A number of automotive suppliers are really running their business well, so well in fact that some automakers think they’re making too much money. Sergio Marchionne, the CEO of Fiat-Chrysler already went public with his complaints, but other sources tell Autoline that he’s not the only CEO who’s complaining. Suppliers such as American Axle, Borg-Warner and Delphi are all posting double digit profit margins, which is better than most automakers. So automakers are complaining that they’re charging too much for their components. And that makes suppliers mad. They point out that they typically only win business by being the lowest bidder. And that they shouldn’t be penalized for running their businesses so well. Suppliers are in a strong position. Thanks to taking out so much excess capacity they can now easily refuse to take on business that is not profitable. And maybe for the first time in the history of the industry they’re in a position to tell automakers to go pound sand.
TROUBLE DEPLOYING NEW AIR BAGS
More than 16 million vehicles were affected by Takata’s defective air bag and those cars are not going to get fixed anytime soon. Takata blames a shortage of wiring harnesses to make the replacement parts. By the end of the month it hopes to have 830,000 air bag kits ready and by February it hopes to have around 1.5 million replacement bags. But there’s a big gap between 16 million and 1.5 million, so it’s going to be a long time before Takata can fix all those cars.
AUTONATION SAYS NO TO TAKATA VEHICLES
And in related news, AutoNation, the largest dealer group in the U.S., says it is suspending sales of vehicles equipped with Takata air bags. This may seem like a big deal but Reuters reports that those cars only account for 1 to 2 percent of AutoNation’s inventory.
MORE VOLT DETAILS
The other day we gave you some info on the next-generation Chevy Volt, but now we’ve got more specific details. While the number of cells decreased by about 100 the volume storage capacity increased by 20% in each cell and the overall mass of the pack decreased by about 30 pounds. The reengineered 2-motor drive unit will operate anywhere from 5 to 12% more efficiently and weighs 100 pounds less than the current system. And the 2016 Volt will use an all-new 1.5L 4-cylinder engine as the range extender, which will be built in Mexico for the first year of production, but will then switch over to the automaker’s engine plant in Flint, Michigan.
MAZDA’S ALL-NEW COMPACT CROSSOVER
Small compact crossovers like the Kia Soul and Buick Encore have been quite popular and now Mazda is looking to grab a piece of that pie. The Japanese automaker just unveiled a teaser image of the all-new CX-3, which is the fifth vehicle in its lineup to feature the new KODO design language. Based on the image we think it’s pretty sharp looking and does a good job of taking design cues from other Mazda vehicles. The CX-3 will make its debut at the LA auto show.
Coming up next, we take a look at the most powerful sedan you can buy in the world.
The 2015 Dodge Charger is a four-door sedan that competes against vehicles like the Ford Taurus, Chevy Impala and Nissan Maxima. Starting price for the Charger is just below $29,000 and it tops out at about $65,000 for the SRT Hellcat model. It’s offered with a variety of engines including a 3.6L V6, a 5.7L HEMI V8, a 6.4L HEMI V8 and the Hellcat’s 6.2L HEMI. All of the engines are mated to an 8-speed automatic transmission. Fuel economy for the V6 is rated at 19 miles-per-gallon city and 31 highway for the rear-wheel drive model and 18 MPG city and 27 highway for the all-wheel drive version. Fuel economy numbers for the other engines are not available yet.
The first thing you’ll notice about the 2015 Charger is its new design. Most notably, the familiar Dodge crosshair is not as prominent as it was on the previous car or it’s been eliminated depending on the model. And it also features new headlights that are pushed to the corners to help give the car a wider look. Pretty much everything on the exterior is new, the roof and the rear door are the only carry over body parts from the previous Charger.
The interior also features new styling, including a 7-inch customizable driver info display, a new center stack and a new steering wheel that’s available with paddle shifters. Overall, I liked the interior thanks to its simple layout. It can be overwhelming sometimes with all the buttons in new cars but the Charger’s are kept to a minimum which makes it easier to locate the button you are looking for.
Now let’s take a look at what’s under the hood. The base model is powered by the 3.6L V6. And while it’s obviously not as powerful as the HEMI powered models, it’s still more than capable with 292 or 300 horses depending on the setup. The R/T model is equipped with the 5.7L HEMI V8. The R/T Scat Pack and SRT 392 models are powered by a 6.4L HEMI. And then there’s the 6.2L HEMI V8 that powers the SRT Hellcat. As you may know already, that model comes with two key fobs, one black and the other red. The black one limits the car’s power but the red one unleashes all 707 horsepower and 650 pond feet of torque. This model is a beast and can kind of be intimidating if you’re not ready for all that power. But wow is it fun to drive and it sounds great when you step into the accelerator.
Production of the new Charger starts later this year at the company’s plant in Brampton, Ontario. And with Charger sales down slightly this year, the new model is making its debut at just the right time.
Be sure to join us for Autoline After Hours tomorrow night when we’ll be talking about a revolutionary engine being developed by Achates Power. David Johnson, the president of the company, is back for an encore performance to update us on the progress they’re making with their engine.
That wraps up today’s report, thanks for watching.
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Comments (37)
October 29th, 2014 at 12:10 pm
Chevies new 1.5L in the Volt will also run on reg gas,not premium like it’s predecessor.
October 29th, 2014 at 12:17 pm
Does Doug’s termination have to do with the recent recalls on Dodge trucks? Or there other factors we don’t know?
October 29th, 2014 at 12:28 pm
So Doug Betts did very well at Toyota that Nissan lured him away, followed by Chrysler. Now all of a sudden a company that could never be accused of making quality vehicles fires the guy because of low ratings. Well, Mr. Betts may have been head of quality and charged with such duties, but he still had senior managers to whom he had to answer. From this report, it sounds to me like Mr. Betts wasn’t the real problem; he was instead an easy target. And that of course, will solve the problem
October 29th, 2014 at 12:29 pm
Chrysler has a Head of Quality? Really?
October 29th, 2014 at 12:35 pm
Chrysler quality is just fine. Except for the A/C not working, my 25 year old Caravan is doing great.
October 29th, 2014 at 12:35 pm
I wonder if Takata feels like they were overpaid for all those air bags that are now coming back to them? There is enormous risk in being an Automotive Supplier; ask Firestone. The problem is that the cost of this “risk” was never baked into the sales price. The supplier is supposed to make perfect products that have been fully vetted by the DVP&R. Of course it is never as good as all of that and Takata is now finding out that the profits they made for working hard all of those years are about to be lost.
October 29th, 2014 at 12:39 pm
6, A lot of the Firestone problem had to do with Ford’s telling customers to under-inflate the tires, so their trucky Explorers would ride better.
October 29th, 2014 at 12:47 pm
“go pound sand”. That is EXACTLY what the suppliers should tell the OEMs. If you have ever had any knowledge of how the OEM (particularly the big three) treat the suppliers at bid time, this is perhaps too nice a comment. Add that to the fact that when I need a replacement part for a car and go to the dealer, they want me to pay $150 for a part they paid under $10 to the supplier for.
October 29th, 2014 at 1:01 pm
Kit,
I had a friend in the tire business who told me that part of the Firestone problem was also a cost down decision, signed off on by the Ford Engineer, to remove a layer from the tread recipe. I’m sure the under inflation was also part of it. How much did it cost Firestone in the end? I think I heard $3 billion. If so I wonder if the previous 10 years worth of profits as “allowed” by Ford would cover it? When thinking of “too much profit” as the supplier’s, the OE’s need to be thinking of the supplier’s business plan. If it does not make sense to take these risks, the remaining suppliers might be smart enough not to do it.
October 29th, 2014 at 1:09 pm
#3. Disco!
Kinda like if the 2008 Detroit Lions (with their 0-16 record) went and hired Bill Belichick, then fired him the following year because they didn’t make the playoffs.
You can’t always blame the head guy. If you suck, you suck.
October 29th, 2014 at 1:12 pm
Typo in the Headlines “Madza”.
That a boy! Chevy that is how you do a press release on your new Volt.
FYI, I would actually prefer an engine that requires high-octane.
I do not with to have an argument about if its worth the money or not, but its what I always buy. I have never had engine/fuel problems and I always received high than advertised MPG.
October 29th, 2014 at 1:12 pm
with = wish
October 29th, 2014 at 1:25 pm
After working on a number of Chrysler vehicles through the years the quality problems seem to have to do with changes made after testing. The 2.7L engine problems all cropped up in vehicles under 70k miles. If they passed the 100k test, their must have been a change in specs after the test but before production. Another quirk in the system is getting these complex systems to work together.
October 29th, 2014 at 1:29 pm
Pounding Sand
Like Lenin said, it’s a question of who can do what to whom.
Too much profit? NUTS!
——–
10 In other sand news, I think it was Bloomberg that had a piece yesterday about how regular gas was declining in price more than premium blends because local sources like Canada made crude that was easier to make into lower octane blends.
October 29th, 2014 at 1:43 pm
HtG let’s hear it for the common man car that accepts regular and does not require premium gas, so much for economy!
October 29th, 2014 at 1:48 pm
With gas prices dropping and the domestic supply in surplus, now is the time to develop a gas formula plan nationwide that reduces the number of them based on region and season, this consolidation would make the national supply more uniform and cut out big problems with the lack of refining capacity. Sometimes you need to bite the bullit for the long term. Ed
October 29th, 2014 at 2:17 pm
@7 Kit and @ 9 Mike – You are both wrong. There were 2 tires sourced to the Explorer – the infamous Firestone and the steady Michelin. The Michelin tire had none of the problems of the Firestone, and no difference in air pressure. Firestone’s manufacturing was not in control — all of the problems were traced to one Firestone plant, which let a few inmates out of the assylum.
October 29th, 2014 at 3:19 pm
17, Are you saying the Firestones would fail if they were inflated to a “normal” pressure of, say, 32 psi? I’d heard that they wouldn’t.
In any case, the Firestones were substandard compared to the Michelins.
October 29th, 2014 at 3:20 pm
@14 HtG – Last night, I noticed the local price of regular gas was $2.98/gallon. The price of diesel was $3.98/gallon. At this fuel price gap, the annual cost of fuel would never payback for a diesel engine. The only way a consumer could justify the acquisition price premium for a diesel engine would be through a combination of retained resale value, longer durability (perhaps this used to be true, but today’s gas engines are awesomely robust), and functional towing needs. If the consumer (who doesn’t have extraordinary towing needs) factors in the higher cost of maintenance (diesel oil changes are punitive), you can kiss goodbye any further US growth in diesel sales.
October 29th, 2014 at 3:47 pm
@18 Kit, I know there were manufacturing defects in the Firestone tires. I know the Michelins did not have the defects and were more robust for varying PSI. I also know many tires are driven in an under-inflated manner in the real world without the issues encountered by Firestone.
There were many tragedies from the Firestone issue… the accidents, the lives affected, the excessive new regulations, and the shameful way in which Firestone threw Ford under the bus. Ford spent billions when they bought back tires… many of which were good tires, but Firestone hid the manufacturing quality data which would have allowed a more focused recall.
I have bought replacement tires many times since the Firestone issue. I have bought Michelin, Continental, and Goodyear… but never Firestone or Bridgestone. Initially, the Continentals seemed the best (quiet, ride quality), but they didn’t wear as well and the ride quality deteriorated. I’d say the Michelins are the most consistent (good/acceptable in all tire attributes).
October 29th, 2014 at 4:31 pm
20, I guess there had been problems with Firestone radial tires long before the Explorer thing. A friend had Firestone 500 tires on his 1977 Corvette recalled years before.
I agree that Michelin tires are the most consistently good overall for general use. The last car tires I’ve bought were Continental and Pirelli, based on reviews and price, they might have been Michelin, except for price. I put Pirellis on the MINI, and after the OEM run-flats, they are great. I don’t drive the car a lot of miles, so they should last me a few years, even with so-so tread life.
I’ve had Bridgestone tires on motorcycles, because that is what they came with. Luckily, I’ve had no failures. A tire failure on a bike makes a tire failure on a car trivial in comparison.
October 29th, 2014 at 4:44 pm
The Volt is to also have a lower center of gravity, which I take means the battery sits lower. Sure, handling will improve, but will this also allow for a full back seat? Hope so!
October 29th, 2014 at 4:57 pm
22, If by “full” back seat, you mean 3 passenger, I’ve read that it probably will.
I’m surprised that so many people even care about that. When is the last time you have seen 3 people in the back seat of a Civic or Corolla? I don’t see that very often.
October 29th, 2014 at 4:58 pm
LA sounds like it’ll be pretty interesting. We need to see John sit in the new Miata, is all I’m saying.
Also, the comedy stylings of Charlie Vogelheim wouldn’t hurt.
October 29th, 2014 at 4:59 pm
I know Bejma said awhile back that GM was taking measures to improve supplier relations and M. Barra stated pretty much the same, but I haven’t seen it happening. Besides the typical cry of a part being too costly, they now want tighter tolerances on those THEY requested during the last contract. My plant, once a GM plant,is reaching out to other OEM’s to gain other business, however, GM now threated to eliminate all future business if we deal with any other,yet have not pledged to make up the difference in volume. “Poundin sand” was not the wording used by the owners!
October 29th, 2014 at 5:21 pm
F1, again
The story today is that Sergio Marchionne will be in Austin this weekend to make a pair of announcements.
You all know Ferrari is very important, right?
October 29th, 2014 at 5:24 pm
Is Ferrari dropping out of F1?
October 29th, 2014 at 5:27 pm
Or maybe Sergio is selling them to VW, and they will become the new Audi team.
October 29th, 2014 at 5:28 pm
What, and walk away from their skim?
Very important
October 29th, 2014 at 5:34 pm
Yeah, VW will paint all their unsold Lambos red and double the waiting list.
Such a prima donna club, F1 don’t even know when their tights are drooping
October 29th, 2014 at 5:38 pm
So, turn 1 on Sunday, Nico challenges Lulu, one is ahead and the other strategizes to get ahead at the undercut. Steve Matchett busts his belts ‘Ooohin and Aaahing’ for an hour and a half. Where do I pay?
Is Hobbs still awake?
October 29th, 2014 at 5:40 pm
I have not heard of any changes in Takata’s leadership over the airbag issue, but to make heads roll, perhaps charging Takata for offering free loaners until defective autos are repaired might get their attension.
October 29th, 2014 at 5:52 pm
Wow, I just had to moderate myself. Went a little nuts. I need a little CK raging.
October 29th, 2014 at 9:56 pm
The Ford Explorer had a higher risk of rolling over – so the Ford engineers recommended to reduce tire pressure to widen the contact patch a bit, and to lower the ride. That worked well until there was a manufacturing defect in the tires, and the tread separated due to increased flexing at the contact patch / rest of tire interface. So the tread delaminated from the rest of the tire, and the inegrity of the tire was lost. That resulted in some fatal accidents.
October 30th, 2014 at 8:28 am
Regular gasoline in Daytona Beach, Florida can be had for $2.84 a gallon. Diesel (on road) can be had for $3.48 a gallon.
October 30th, 2014 at 10:08 am
Care quality determines the lifespan of a car more than build quality.
October 31st, 2014 at 11:22 am
Dodge Quality?? Lets see the 2009 Charger I drove at work, hemi, had 3800 dollars of engine work at 36000 miles, valve springs, valves, and lifters replaced. The driver’s door just cracked around the lower hinge and needed a new door not rust bad metal. The 2012 I drive now with 25000 miles just had both motor mounts go bad..Needless to say we are done with Dodge and will be ordering another make.