AD #1620 – Jeep Heading Upscale, Volvo Prices All-New XC90, VW’s Hot Hatch Concept
May 14th, 2015 at 11:45am
Runtime: 7:00
- Honda Expands Airbag Recall
- Renault Posts Strong 2014 Results
- Jeep Heading Upscale
- Volvo Announces All-New XC90 Prices
- Auto Brakes Help Put Stop to Crashes
- VW’s Hot Hatch Concept
- Become a Marketing Genius
Visit our sponsors to thank them for their support of Autoline Daily: Bridgestone, Dow Automotive Systems and BorgWarner.
»Subscribe to Podcast | 
| 
| Listen on Phone 
| 
On today’s show… Jeep has plans to go after Land Rover, Volvo puts a price tag on the all-new XC90 and Volkswagen reveals a sleek looking hatch concept. All that and more coming right up on Autoline Daily.
This is Autoline Daily for May 14th, 2015.
HONDA EXPANDS AIRBAG RECALL
Yesterday both Toyota and Nissan announced they’re recalling an additional 6.5 million vehicles related to Takata’s faulty airbags. And now Honda is tacking on another 5 million vehicles to that list. Honda has been the hardest hit automaker over the defective airbags, it’s had to call back nearly 20 million vehicles globally. All together, automakers have recalled close to 36 million vehicles over the issue.
RENAULT POSTS 2014 EARNINGS
Yesterday we looked at Nissan’s impressive full year earnings and its alliance partner, Renault, also posted strong financial numbers in 2014. The French automaker sold 2.7 million vehicles last year, a gain of 3.2% compared to the year before. That number also includes Dacia and Renault Samsung. Its total revenue topped $46 billion, an increase of just 0.3%. But despite the modest boost in revenues, its operating profit was up nearly 30% and its net profit hit $2.3 billion, skyrocketing 187%. Renault’s top three markets outside of France last year were Brazil, Russia and Germany.
If you want to learn more about Cadillac’s new flagship sedan, the CT6, make sure you tune in to Autoline After Hours today. Joining John and Gary is Travis Hester, the Executive Chief Engineer of the CT6. So if you’ve got any questions about that car, send them to viewermail@autoline.tv. That’s today at 3PM eastern time on our website Autoline.tv.
And we’ll be back with more right after this.
JEEP HEADING UPSCALE
A fully loaded Jeep Grand Cherokee can set you back over $60,000 but the company believes the brand can go even more upscale. Bloomberg reports that FCA CEO Sergio Marchionne confirmed it’s developing a Jeep to compete against Land Rover and Mercedes. Can anyone say “Jeep Wagoneer?” Jeep sales are going gangbusters globally and luxury SUV sales are also booming. Plus Jeep has a very favorable reputation around the globe. So we can see why the company believes it’s a segment worth jumping into. However Jeep and luxury does seem to be a bit of an oxymoron. But we want to know what you think. If you ran Jeep, what would you do? Let us know in the comments section below.
PLUGGIN’ IN COSTS PLENTY
Volvo just released the U.S. market prices for its all new XC90. There are two different models, one of which is a plug-in hybrid. And there are three different trim levels for each model. We’re not going to go through every single one, but here’s the range. The base T6 model starts at $49,895, while the top line T8 plug-in tops out at $72,595. That’s quite a range. The T8 hybrid, with a total of 400 horsepower and 472 pound feet of torque, provides surprisingly good acceleration. And it comes very nicely equipped. But the upcharge for the plug-in, depending on the trim level, is anywhere from $17,000 to $19,000. We’re sure that Volvo has studied the market carefully. But with that kind of markup, they’re not going to sell a lot of T8’s.
Coming up next, a look at a sporty hatchback concept from Volkswagen and a new study shows how effective automatic emergency brakes are at reducing accidents. We’ll be back right after this.
AUTO BRAKES HELP PUT STOP TO CRASHES
Automatic emergency braking is starting to become a more common feature on cars and a new study shows just how effective the technology can be. The Euro and Australian NCAP just did a joint study looking at systems that can bring a vehicle to a stop at speeds up to 50 kilometers an hour, or about 30 miles per hour. Using real-world data from Europe and Australia, they found that auto emergency brake systems can reduce rear-end collisions by 38% compared to equivalent vehicles without the technology.
VW’S HOT HATCH CONCEPT
Volkswagen has a long history of sporty hatchbacks and now it’s giving us a look into the future with the Golf GTE Sport Concept. While the mostly carbon fiber body still looks like a Golf, it’s taken that next step in evolution with features from current and other concept models. Pop open the hood and you’ll find a 1.6L turbocharged 4-cylinder engine plucked from the Polo R World Rally Car mated to an electric motor and 6-speed DCT. Another electric motor out back makes for all-wheel-drive fun with nearly 400-horsepower on tap and a 0 to 60 time of 4.3 seconds. Swing open the Lambo doors and you’ll find 2 separate cocoon-like areas for the driver and passenger with racing bucket seats and 5-point harnesses. Most functional controls and buttons are located within the driver’s workspace. All I can say is, build it and they will come.
BECOME A MARKETING GENIUS
And just a reminder that we’re still taking you suggestions for the next “Big Name” for a interior material. As FCA designer Klaus Busse pointed out on a recent AAH, it’s not about the feel, it’s the name that makes a material popular, like Alcantara. Some of the names that have come through so far that I like are Beaucurv, DynoHyde, Takoradi and Samarkand. If you’ve got an idea just leave it in the comments section or send an email to viewermail@autoline.tv. And we’ll pick our favorites at the end of the week.
But that wraps up today’s report, thanks for watching.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
Share
Embed
Permalink
Comments (36)
May 14th, 2015 at 11:53 am
Marketing as a concept deserves respect. It takes what is essentially an appliance and turns it into a “snazzy, got to have” product that people are willing to pay for. Automobiles that are appliances earn very little for the carmakers. It is the high end, flashy stuff that sends money to the shareholders.
May 14th, 2015 at 11:55 am
I agree that Jeep can continue its upward climb. I always considered the Grand Cherokee to be a bit more upscale than the rest of the domestics and I see no reason why they shouldn’t take advantage of that image to step it up a notch or two.
May 14th, 2015 at 11:59 am
I know this has been eluded to, but I have to say it..”if you don’t know what is causing the airbag problem, how do you know it is fixed with a new unit?”
May 14th, 2015 at 12:11 pm
3. yep. My Honda’s driver side bag was recently replaced, but in fact it had already been replaced under a previous recall for the same issue. (The passenger side was also just replaced for the first time)
___
Why not push Jeep prices up? Escalades can go for 95K.
May 14th, 2015 at 12:14 pm
The Grand Cherokee has been out of my price range for many years now,may as well keep jacking up the prices to LR level.At least the GC will bring you home more then any LR/RR.
May 14th, 2015 at 12:19 pm
I think Jeep would need to be very careful about trying to get a piece of the luxury SUV pie. The Jeep brand has never been about luxury or high end vehicles. Since it is not the brand’s forte, it may not necessarily get the right mix off-road prowess and Beverly Hills panache. Still, Porsche pulled off a luxury SUV to the chagrin of many; although, it already had the rich and famous reputation. Personally, I think Jeep is better off sticking with what it does best. They can add better quality if they want, but luxury SUVs, maybe not.
May 14th, 2015 at 12:21 pm
Can Jeep continue to move further upscale? You only have to recall that Land Rover started their company with the utilitarian Defender. Look where they have gone. Jeep was moving along a similar path with the Grand Cherokee carving out new territory very successfully. A replacement for the Grand Wagoneer has been planned and stalled several times with the robber barons that owned or ran Chrysler. With Marchionne, Jeep finally has the support it needs to pickup where it left off.
May 14th, 2015 at 12:22 pm
And even if a Grand Cherokee or another model gets even pricier, that doesn’t mean it’s luxurious.
May 14th, 2015 at 12:30 pm
Just listened to the article about Jeep going upscale and Cadillac new offering. Makes me wonder who are and will be buying these out of reach (price wise)models? What ever happened to thinking about models for the average consumer. I make a decent wage but still drive a used but fun 2005 Jeep Wrangler.
May 14th, 2015 at 12:41 pm
Jeep needs to be carefull that if it develops a high-end/luxury vehicle that the high price doesn’t give the impression that its other models are of high price compared to their competition. If they do develop the luxury SUV lets hope that it doesn’t even remotely look like the Renegade.
May 14th, 2015 at 2:30 pm
In case anyone cares about this, yesterday it was reported that the 3 Chrysler made SUV’s Journey, Grand Cherokee and Durango did horrible in the latest crash tests. That state of the art Chrysler engineering is something else!
May 14th, 2015 at 2:40 pm
Jeep risks “a bridge too far” trying to go too upscale. Theirs is an image of hard work not luxury.
I’m waiting to see how Marchionne launches Alfa Romeo…if done properly I predict good success.
May 14th, 2015 at 2:42 pm
Regarding Jeep, I think there is room for them, but…. I wouldn’t use the Wagoneer name as it is too plebeian. Also, if they go upscale, they need to trim the turds, because Compass and Patriot really hurt the brand.
Regarding auto raking systems, I suspect forward collision warning systems with good HMI will do just as well and with less dire consequences from false positives.
May 14th, 2015 at 2:57 pm
Interior material names…how about butter skin.
May 14th, 2015 at 3:44 pm
Jeep did go upscale with the Wagoneer, and it was a notch above (and more expensive) but wasn’t wildly popular either. Jeep better do their homework before heading for the ‘stratosphere’.
If VW goes along with the concept (vehicle), similarly to the idea of using a bygone name, earlier mentioned; the Wagoneer for Jeep, I’m thinking the slam-dunk for the VW should probably be Scirroco.
May 14th, 2015 at 5:54 pm
Interior material name..
“LUSTRON”
May 14th, 2015 at 5:54 pm
I have always wondered why Chrysler didn’t make a full size SUV off the RAM platform like GM does with the Tahoe/Escalade off the Silverado, they could tart it up pretty good and go after Land Rover and I’m sure undercut them on price for the same capabilities. Get a few rappers to sing about it and welcome to Escalade country
I’ve got a lot more ideas for you Sergio, give me a call.
May 14th, 2015 at 6:06 pm
Jeep could have had Walter White drive some monstrously optioned Grand Cherokee SRT with a ‘secret compartment.’ Monster in a monster, now that’s marketing.
May 14th, 2015 at 8:07 pm
Just a reminder that when the 1993 Grand Cherokee was introduced, it was one of the first luxury SUV’s. Jeep can do it, but it must be done the right way down to meeting consumer expectations at the dealership service level.
May 14th, 2015 at 8:09 pm
Today’s entry : Silvestari leather
May 14th, 2015 at 8:31 pm
Jeep can make a great luxury SUVs. Look of recently they have up marketed wrangler from special purpose to main stream vehicles.
Let’s face when people say jeep they think suv.
Just when you want face tissue you say Kleenex.
When you move you say get a u-haul instead of moving truck.
Jeep ownes the SUV market they cannot fail.
May 14th, 2015 at 8:33 pm
Ok for interior names
Corinthian leather
Brougham
May 14th, 2015 at 8:56 pm
Today at Indy a second car got airborne.
Castroneves before and now Newgarden got backward to the airflow and then flipped.
https://www.youtube.com/watch?v=THfIvk628eo
Kokomo, we have a problem
May 14th, 2015 at 9:00 pm
Lobuck Skin
May 14th, 2015 at 9:47 pm
Cartier
May 15th, 2015 at 5:09 am
I saw two cars of note this last week: at Epcot (Disney World), saw but could not get in the new Volt. The styling is more main stream (and looks very good in my opinion) but still is pretty recognizable as a Volt. With just a little investigation you’ll get the ‘electric’ profile but only subtlety (compared to the original). The other vehicle of note was on my way back home on I-95 in Georgia (around the Savannah area); it was a black NEW ZO6, that thing was beautiful/ominous/sleek and different enough looking (from the regular Vette) to be noticeable. Obviously no details as I only saw it in-passing (him passing me)
.
Another leather-ette substitute name: fabrique derriaire.
May 15th, 2015 at 7:53 am
Jeep luxury, I thought they tried that with the Jeep Commander. But that didn’t last very long and had unimpressive MPG.
May 15th, 2015 at 8:23 am
16 If Jeep wants to compete with Escalade for a piece of the rapper/NFL linemane market, yeah, I’d think a monster SUV based on the RAM would be the way to go. In America, more size still gets more money. It would cost a lot to develop such a vehicle, though, and while Escadade does ok, is there room in the market for another $100K huge SUV?
May 15th, 2015 at 9:12 am
#9.
“What ever happened to thinking about models for the average consumer”
That’s what the rest of the lineup is for. “The average consumer” is what the domestics have always been about from their very inception.
Just because an automaker takes one single line and pushes it upscale doesn’t mean the entire brand is now going to be out of reach for the average Joe. There will always be enough ‘affordable’ cars to go around. Don’t bust their chops for wanting to reach a little higher.
May 15th, 2015 at 9:26 am
#25.
On that note, Chuck (since you mentioned the Vette), I had a car tailing me for about two miles the other day that I just KNEW was the new Vette, only to discover that it was actually its kissing-cousin, the Ferrari F12 Berlinetta.
Those two cars are just too darn identical!
May 15th, 2015 at 11:14 am
#30 MJB
I agree that the Ferrari is similar (especially in front view) to the Vette. My sighting was definitely a ZO6 (saw the letters/number on the hood). I would have also been pleased to have seen the ‘prancing horse’ as well. Even the Viper, at quick glance, has similar front fascia (especially compared to the last gen Vette).
May 15th, 2015 at 11:37 am
30, 31 It sounds like a ‘Vette is even more of a bargain than I realized.
May 15th, 2015 at 11:42 am
#32 Kit
’tis
May 15th, 2015 at 11:43 am
11 I’m not surprised about the Journey, but I was surprised about the GC and Durango, and the recently redesigned Hyundai Santa Fe getting only “marginal” ratings.
May 15th, 2015 at 3:23 pm
#34 Specially since they’re both derived from Mercedes underpinnings, which always do well in crash tests. Go figure.
May 19th, 2015 at 6:39 am
Can/should Jeep go up market, or just produce an up market vehicle to crown it’s line up? That all depends on what that means. Yes, IMO, I believe that they can do both. Jeep (and Chrysler for that matter) could produce a vehicle that can compete with the Navigators and Escalades. But an Escalade is no Land Rover Ranger Rover! And to compete with that type of vehicle and brand, it will take time for Jeep to develop that type of image, loyalty and respect from its customer base. While they both may have similar vehicle mobility attributes, it’s in the details that the Land Rover is viewed by many as superior. Whether that is true or not, what is a fact is that people have driven farther and spent more money on a Land Rover, which has probably has had more repair issues then the GC! But Jeep will not get that respect by just building a vehicle and expecting buyers to just show-up. I think the need to start with a high end GC, one with no compromises in the interior appointment. Then moving on from there, years later, to a luxury vehicle to challenge Land Rover!