AD #1576 – First Look: 2015 Ford Edge, Defining “Automotive Grade,” FCA Open to Merger
March 13th, 2015 at 12:06pm
Runtime: 8:15
- Marchionne Open to Merger with Rivals
- Transplants’ Influence on Labor Talks
- Defining “Automotive Grade”
- First Look: 2015 Ford Edge
- Jeep Teases Moab Concepts
- Celebrating Pi Day
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On today’s show… non-union transplants will have a big impact on contract negotiations with the UAW, we dive into the new Ford Edge and then learn what “automotive grade” software really means. All that and more coming right up on Autoline Daily.
This is Autoline Daily for March 13th, 2015.
MARCHIONNE OPEN TO MERGER WITH RIVALS
Fiat-Chrysler CEO Sergio Marchionne has openly talked about the need for consolidation in the auto industry and now he’s stirring the pot again. Bloomberg reports he’s open to merging with Ford or General Motors and that the combination would be and I quote “technically feasible.” But there aren’t any serious talks at the moment. It’s also been speculated that Volkswagen is another automaker FCA would want to merge with but Marchionne says there haven’t been any discussions with VW. GM and Ford say they’re focused on their own businesses, so a merger with its Detroit rivals seems unlikely.
TRANSPLANTS’ INFLUENCE ON LABOR TALKS
Speaking of the Detroit based automakers, they will go into contract negotiations with the UAW later this summer. But it’s the non-union transplants that will have a big impact on negotiations. That’s because the transplants have added more temporary workers in their plants, and those temps work at lower wages and benefits. So while, GM, Ford and FCA have lowered their labor costs thanks to a lower wage for entry-level workers, and the VEBA, the transplants have lowered their costs as well. Joe Hinrichs, the president of Ford America’s says they need to stay competitive with the transplants. “We can’t lose sight of what got us here today,” he says. “Part of that was keeping the focus on being competitive in the U.S.” Maybe part of the solution is more profit sharing. Hinrichs points out that Ford’s UAW workers earned an average of $30,000 in profit sharing over the last four years.
Still to come… you’ve heard the term “military grade,” but what does “automotive grade” mean and a look at the new Ford Edge.
DEFINING “AUTOMOTIVE GRADE”
Ford claims it is using “military“grade” aluminum in its F-150. GMC claims that its brand is “professional grade.” But have you ever heard of “automotive grade” software? That was a new one on us. But we ran into that term yesterday at a press briefing at Delphi, the big automotive supplier. So we had to ask, what is “automotive grade” software? Interestingly, it refers to software that has no bugs or resets. Not for any individual function in a car, nor for the total electronic system and especially not for any safety system. It means you don’t put out a beta version that will get updated later, it has to be perfect the day it launches. Moreover, the hardware that runs the software has to operate between -40 degrees and 105 degrees Celsius. That’s -40 to 221 degrees Fahrenheit. And people wonder why the consumer electronics industry gets products out faster than the automotive industry!
FIRST LOOK: 2015 FORD EDGE
“When you have an opportunity to do all new, you can really go to the heart of what matters to the customer, and you can listen to the customer and you can say I can literally change just about anything the customer tells me they want. And I can start from the ground up. It’s like an artist being able to do their own picture instead of finishing somebody else’s. It’s just fun.”
- J. D. Shanahan, Chief Program Engineer, Ford Edge
Ford’s J.D. Shanahan may not claim to be Picasso, but after helping bring the all-new 2015 Edge online, he sort of feels like an artist. The third generation of this Crossover, that his team worked on the last three years, is hitting dealerships now after being engineered from the ground up with a new more athletic exterior design, two new powertrains, a brand new soft touch interior and at least 23 technologies in the car: 14 new to Edge including 4 making their debut on any Ford vehicle.
The new Edge is also longer and higher giving the passengers more room than the outgoing car. And for the first time Ford is adding a Titanium trim level for those who are looking for a more premium experience.
And even though the Edge is debuting right now in North America, it’s a global crossover that will also be rolled-out in South America, Europe & eventually China.
But if you want to hear the real skinny on this brand new CUV then tune into next Thursday’s Autoline After Hours when Ford’s Scott Smith, the Program Manager for Edge will be in studio, and he may even bring a vehicle with him. That’s March 19th at 3pm Eastern for the big Edge download on Autoline After Hours.
Coming up next, Jeep teases a couple new off-road vehicles it will have at Moab and what the number pi has to do with the auto industry.
JEEP TEASES MOAB CONCEPTS
Every year at the Easter Jeep Safari in Moab, Utah Jeep unveils a series of vehicles equipped with Mopar aftermarket accessories and, with this year being no different, here’s a sneak peak at a few. The first is called the Jeep Chief, which as some of you may remember is a throwback to the Cherokee Chief, although this one looks like it’s based on a Wrangler. The other is called the Wrangler Red Rock Responder, try saying that 3-times fast, and looks like it has a truck bed on the back. Kind of like the one we saw outside the Detroit auto show. Jeep will have 7 vehicles in total to show off at the event when it kicks off on March 28th.
LIFE OF PI
Tomorrow is pi day. Not the blueberry, cherry, or apple kind but the mathematical variety. Saturday celebrates that number we all learned in high school and most have never given it a second thought. But what’s interesting about this year’s Pi Day is that at 9:26 and 53 seconds tomorrow morning — at that precise moment — We will match the first 10 in that infinite string of numbers. That only happens once every hundred years.
In honor of Pi Day, AutoTrader.com looked at those first five numbers and found 124 vehicles in the website’s inventory with the $31,415 price tag. Honda topped the OEMS with the most vehicles at that price with Ford coming in second and Chevy and Nissan tied for third. In fact, the Honda Accord, curiously enough, has an MSRP at exactly Pi: 31415. How about that?
Now, you may not want to celebrate Pi Day tomorrow by running out and buying a car, but a cheaper alternative might be dropping by your local baker and picking up one of those blueberry, cherry or apple beauties we mentioned before. Because after all, whether it’s the number or the taste, Pi is still infinite.
But that wraps up today’s show, thanks for watching and have a great weekend.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
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Comments (51)
March 13th, 2015 at 12:28 pm
My general feelings, concerning wages, lean towards a ‘livable’ wage with profit sharing; just a good wage, with no penalty for mediocrity, brought the automotive industry ‘down’ (a number of times).
“Automotive Grade” is certainly a fine goal, and the manufacturers meet that goal more times than not; however, it is not always the case.
The Ford Edge looks nice (more evolutionary in my opinion) but perhaps the upgrades and enhancements can lead it to the ‘mark’ of the field (segment).
Oh, and make mine: apple
March 13th, 2015 at 12:29 pm
I seem to remember that some new Hyundai product (Tucson) has a very similar front grill as this new Ford Edge. This new Edge looks great the only thing is what will it cost?
Too bad GM did not fully update the 2016 Equinox. I guess Mr. Wilson and his gang have really hurt GM to the point that they are reducing their power-train warranty from 5yrs / 100K to 5yrs /60K. This is a really bad move by GM! It will reduce residuals on all 2016 GM vehicles with this reduction.
March 13th, 2015 at 12:36 pm
Marchionne is only putting out this message to see if their are any takers. Do not look domestically or to Europe. The ones who will be interested are the Chinese Auto Makers. Partnering or Buying Chrysler from FCA will put much needed cash into the pockets of FIAT. The Chinese will have an excellent opportunity to gain access to the North American Automotive Market.
March 13th, 2015 at 12:44 pm
Ford made a big mistake selling JLR to TATA! Now Ford is wasting big money to revitalize Lincoln. Lincoln will never again have the popularity of Jaguar and Land Rover. The New Land Rover Discovery Sport is going to be a hot selling vehicle in my neck of the woods. That is why JLR is looking to increase production capability in North America.
March 13th, 2015 at 1:07 pm
Just read that Honda is beginning to put turbos in some of their mainstream cars in the near future, starting with the Civic, I guess at this point they’ll try anything to make their compact relevant again. Big gamble if you ask me!
March 13th, 2015 at 1:14 pm
Yaaaaaaaaaaaaaaaaa! F1 is finally back for a new season, let’s hope it is as close a season as last year, maybe this time with a few teams competing for the final prize instead of just one. Yaaaaaaaaaaaaaaaaa! F1 is back.
March 13th, 2015 at 1:16 pm
“Automotive Grade”, HA! I’ve been developing complex real time telecom software for 37 years. Software with zero bugs does not exist!
March 13th, 2015 at 1:24 pm
new Edge looks nice and the Equinox and SRX soldiers on mostly unchanged, on and on and on. WTF GM?
Chuck- it doesn’t matter how much profit sharing you give the floor worker if you design a crappy vehicle, they aren’t magicians.
March 13th, 2015 at 1:52 pm
#7 – Agreed!
#8 – Wurd, Buzzerd. 100% Don’t blame labor for bad management.
March 13th, 2015 at 2:20 pm
2 GM’s “downgraded” powertrain warrant is as good as every other mainstream car company, except HK and Chrysler. The 5/60 is better than warranties for certain expensive cars like Mercedes-Benz and BMW.
March 13th, 2015 at 2:22 pm
6 I agree with Ziggy. Here’s a video to get everyone in the right F1 frame of mind. Caution, sentimentality and melodrama ahead…
https://www.youtube.com/watch?v=sWH22VtA19g
March 13th, 2015 at 2:24 pm
5 It seems that everyone is doing turbos, though Toyota is holding out. We’ll will see if the Honda turbos buy us anything in performance or efficiency. Their current powertrains do very well, especially in Accord.
March 13th, 2015 at 2:41 pm
Yes, Automotive Grade implies more rigor and increased operating temperature over “Angry Birds”…but it doesn’t imply “bug” free.
Not even the “Military Grade” software I work on is “bug” free. It is impossible to have 100% bug free…
Now you can design for deterministic behavior and test endlessly for that deterministic behavior. But there are always unknowns..solar flares, MTBF for the hardware, etc.
Good software design will recognize those events and take appropriate action, but nothing is ever BUG FREE.
March 13th, 2015 at 2:42 pm
Today we had “pie” to celebrate “pi” day.
March 13th, 2015 at 4:53 pm
I can get irrationally excited by cherry pie. Or blueberry. Or apple. Or lemon meringue.
I can’t be certain, really
March 13th, 2015 at 4:57 pm
15. Kinda like vodka?
March 13th, 2015 at 5:21 pm
15, and yeah, me too
March 13th, 2015 at 5:55 pm
Kit, for the most part, Subaru and Mazda are also avoiding the turbo way, with the latter also avoiding CVT’s as well. 15 I’ll take peach cobbler with some good vanilla ice cream, thank you!
March 13th, 2015 at 6:16 pm
Imagine FCA merging with VW….;What better way to improve reliability!
March 13th, 2015 at 6:32 pm
#19 Huh? you ok, cwolf? If VW merged with Toyota, the latter’s reliability would drop as well.
March 13th, 2015 at 6:47 pm
pedro,….I was being facetious my friend!
March 13th, 2015 at 6:52 pm
kinda like me wanting one of those temp jobs so I can work for sub-wages, less than 40/week and no benefits. What a great way to milk the state out of food stamps, housing and utility reductions!
March 13th, 2015 at 7:19 pm
Why is Sergio even talking out loud about mergers? My Machiavellian alter ego doesn’t recognize idle chatter. Is he seeing someone else doing a merger without him? I notice the statements from Ford and GM today affirming their independence.
March 13th, 2015 at 7:39 pm
Sheaun! With all the talks of pie have you heard before about the tradition kind from my country. Is made with olive mush, bitter persimmon and cow fats. Pie called пирог с мясом in my language.
March 13th, 2015 at 11:07 pm
The issue to be resolved with an FCA merger with anyone is Marchionne expecting to head up the newly merged (and larger) enterprise? Can you imagine Marchionne heading up GM? (Mary Barra cannot)
There is a key lime pie store near Cocoa Beach and Merrit Island Fl. Yummy!
March 14th, 2015 at 12:30 am
Who copied Who? The 2015 Ford Edge looks Ford choose Subaru Legacy as their choice vendor to supply the Grill on the 2015 Ford Edge.
Who came first the Chicken or the Egg.
March 14th, 2015 at 7:37 am
#25
Well, Ford had that (similar) style grill a long time before Subaru; of course Ford stole that from Austin Martin so it may go all the way back to whether it was the dinosaur or the bird (that came first).
March 14th, 2015 at 1:55 pm
Duh, #26, of course I meant Aston Martin.
March 14th, 2015 at 3:14 pm
I’m going to give you a Passat this time, Chuck
March 14th, 2015 at 3:57 pm
Chrysler stopped taking orders for Hellcat Challengers and Chargers, due to excessive demand. It sounds like they need to raise the price.
March 14th, 2015 at 5:14 pm
The problem with the Hellcat is that the male all too often is eaten by its mate after breeding! Doncha know?
March 14th, 2015 at 8:03 pm
When the price of gas goes way up again, the Hellcat will be known as the Cat from Hell!
March 14th, 2015 at 11:32 pm
If you are using a Hellcat as your daily driver then gas prices are not a concern. Tire prices maybe a concern.
March 15th, 2015 at 12:06 pm
All good points on the Hellcat; I think people want to get ‘in’ on buying a classic (for the future; some anyway). It (the hellcat Charger/Challenger) are the new “Hemi” supercars (of old) for the new.
On another topic: watched the Australian GP this morning, and to me, was slightly a yawn. Half the field didn’t finish, a handful didn’t even start, and M/B is still ‘kicking’ butt (though Ferrari shows threads of life). I’ll be following the rest of the season (as I’ve just about abandoned NASCAR).
March 15th, 2015 at 12:13 pm
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Spoil Sport Alert
RedBull principal Horner lashed out at Renault’s engine, actually detailing its weaknesses. Incredible. I wonder how Carlos Ghosn will like that. Oh, and then Horner complained that the FIA should slow Mercedes down.
Pinnacle Rat Pile of a sport if you ask me, and I’m a wretched junkie.
March 15th, 2015 at 12:15 pm
OK, the Autoline server won’t let me link to the story at Crash.net. So go there for the Horner piece.
March 15th, 2015 at 1:56 pm
31, 32 I doubt that many Hellcats will be used as daily drivers. Most will end up being occasion use toys. As far as gas mileage, they probably don’t do much, or any worse than the zillions of huge SUV’s being used mostly to carry one person around town. The Hellcat needs premium gas, though.
March 15th, 2015 at 1:59 pm
35 I’ll be checking it out later. It sounds like Renault didn’t make a lot of progress during the off season, but FCA did.
March 15th, 2015 at 2:45 pm
FCA/Marlboro, that is.
Oh zzzing!
March 15th, 2015 at 2:56 pm
Oh my, Horner is sharing even more details of the Renault unit’s uselessness.
http://www.motorsport.com/f1/news/horner-slams-undriveable-renault-engine
March 15th, 2015 at 4:19 pm
Someone please explain to me why Mercedes drivers need to cut across lanes in turns. And why BMW drivers need to hog the left lane, holding up traffic.
Volvo drivers, you’ve lost your crown as the worst drivers on the road.
March 15th, 2015 at 5:09 pm
Audi and Porsche, you guys rock.
March 15th, 2015 at 5:44 pm
40 Mercedes drivers are uppity, and BMW drivers think it’s safer to be in the passing lane while going slow and texting?
March 15th, 2015 at 5:56 pm
Merc drivers think they’re the only people on the road, so they can do whatever they want. This is a 20 year phenomenon for me. BMW jerks can’t imagine anyone else would dare go faster than them. So they block the road.
March 15th, 2015 at 5:57 pm
One old phart in an M3 on a mountain road, I’m thinking of at random
March 15th, 2015 at 6:20 pm
43 crxn
BMW jerks can’t imagine anyone else would dare go faster than them, given their own utter and unacknowledged lack of driving skill.
March 15th, 2015 at 6:21 pm
You bet I’m hot this afternoon.
Sorry to the gentle townsfolk of Autoline
March 15th, 2015 at 6:29 pm
I’m waiting on a plane at San Antonio. One person of the group I’m with has used Uber about a dozen times, while the rest of us walked. He loves Uber.
March 16th, 2015 at 7:47 am
Thanks for explaining automotive grade. So whats the explination of GMC’s professional grade?
March 16th, 2015 at 9:56 am
GMC professional grade is a Chevy truck with leather and $3,000 in options
March 16th, 2015 at 10:20 am
48, 49
Those “professional grade” ads worked so well, that they actually convinced people that GMC products are better than the virtually identical Chevy. Because of that, GMC wasn’t dropped during the bankruptcy.