AD #1760 – Dow & DuPont May Merge, NHTSA to Change 5-Star Safety Rating, Nissan’s Truck Problems
December 9th, 2015 at 11:51am
Runtime: 6:57
- Dow & DuPont May Merge
- NHTSA to Change 5-Star Safety Rating
- Samsung Boosts Automotive Business
- 2016 Car & Truck/Utility of the Year Finalists
- Ferrari Blocks Former Mercedes Racing Engineer
- Nissan Shakes Up Truck Management
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On today’s show… a look at the finalists for the North American Car and Truck of the Year awards, NHTSA will beef up its 5-star safety ratings and Nissan shakes up its management in North America. All that and more coming right up on Autoline Daily.
This is Autoline Daily for December 9th, 2015.
CALL IT DOWPONT
In a development that will have a significant impact on automakers, two giant chemical companies, Dow and DuPont are reportedly going to merge together. Then the two will be broken up into three separate companies. Both Dow and DuPont are major suppliers of plastics, foams, kevlar, carbon fiber, structural adhesives and other raw materials to automakers and suppliers. They have a long history of involvement in the auto industry. In 1920 the DuPont family essentially bailed out General Motors and was the major stockholder in the company until 1961. And both companies go back a long way. Dupont was established in 1802 while Dow came along in 1897. While the two competed fiercely with each other, it is activist investors who are forcing the merger, saying that both companies should have better profit margins and higher stock prices.
I SEE STARS
The National Highway Traffic Safety Administration wants to change its 5-Star Safety Rating. To get a 5-star rating the agency wants to include crash avoidance technologies including pedestrian protection. A new frontal oblique test will be added to assess how well a vehicle protects passengers in an angled crash, plus a new full frontal barrier test to measure how well rear seat occupants are protected. The agency also wants to use new crash test dummies that provide more data on how a crash affects the human body. And the rating system will start using half-star increments to give consumers a better idea of which vehicles are safer. NHTSA wants to implement all this by the 2019 model year.
ANOTHER AUTONOMOUS SUPPLIER
Tech companies like Google and Apple are falling in love with the automotive industry and now Samsung is jumping in. Bloomberg reports it will focus on developing autonomous and infotainment components to boost its automotive side of the business. Last month Samsung partnered with Audi to provide memory chips for dashboards, infotainment and driver assistance features. It’s not surprising to see why Samsung wants a slice of this business. The automotive semiconductor market alone is expected to generate nearly $33 billion next year.
So which vehicles are the finalists for the car and truck of the year awards? We’ll be back with the answer right after this.
NACTOY FINALISTS
The votes have been tallied and the finalists are in for the 2016 North American Car and Truck/Utility of the Year awards. On the car side we have the Honda Civic, Chevrolet Malibu and Mazda MX-5 Miata. While the truck/utility finalists are the Honda Pilot, Nissan Titan XD and Volvo XC90. The two winners will be announced on January 11th at the Detroit auto show, but we’d love to know who you think will take home the top honors. Just leave your guesses in the comments section below and we’ll see who deserves a pat on the back in about a month’s time.
OH, NEVER MIND
Yesterday we reported how Mercedes’ Formula One team is suing a former engineer for data theft before he left to join Ferrari. But now, not surprisingly, that engineer is getting left out in the cold. Ferrari says the engineer will not be joining the Italian team and never even had a formal contract with the company.
Coming up next, John will be here to give you his insights into the latest management changes at Nissan North America.
NISSAN’S TRUCK PROBLEMS
Nissan announced a significant number of management changes in its North American operations. Perhaps the most interesting change is that Nissan is moving Fred Diaz out of his position in charge of all sales and marketing, and putting him charge of a newly created division called North America Trucks and Light Commercial Vehicles. Here’s my Autoline Insight of what’s going on. Despite a red hot market in North America and a slew of new products, Nissan has not gained any market share this year. Worse, sales of its commercial vehicles are down more than 6%. That includes the NV 200, the NV, the Titan and the Frontier. Fred Diaz was hired away from Ram to boost those sales, and now the company is creating a new business entity to put a laser-like focus on trying to make that happen. But this is not exactly a promotion. Diaz will now report to an executive named Christian Meunier, who gets Diaz’s old job and gets his former title of senior vice president. This all has to do with Nissan’s business plan called Power 88, which calls for global market share of 8% and operating margins of 8%. Clearly, the latest management changes show that CEO Carlos Ghosn is getting impatient with the rate of progress and wants it to go faster.
Don’t forget to tune into Autoline After Hours tomorrow starting at 3 pm eastern time. We’ll have Robert Davis, who is in charge of all operations of Mazda North America. Here’s your chance to get an inside view of Mazda’s plans and goals. And if you’ve got any good questions you’d like us to ask, shoot us an email, a tweet, or post it in the comments section in today’s show notes. Then join me and Gary for some of the best gear head insights in this business.
But that wraps up today’s report, thanks for making Autoline Daily a part of your day.
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Comments (46)
December 9th, 2015 at 12:11 pm
I pick the Nissan Titan XD. It looks different and exciting. I am intrigued by Nissan’s idea of sizing. From the armchair, it looks workable but the market will decide.
I am sorry but I can’t get too wound up on the car side. Nothing really interesting here, but I will guess Honda Civic. No reasons, just a dartboard.
December 9th, 2015 at 12:14 pm
NACTOY
I look at those car finalists and have no idea how to choose a winner.
—–
Ferrari
So we’re to believe that this top engineer from Mercedes served notice in 2014, was moved over to DTM, and HE DIDN’T HAVE A CONTRACT WITH FERRARI? As Colonel Potter would say, ‘HORSE HOCKEY!!!’ Precious Ferrari and their over cologned attorneys are full of it.
——
Questions for the Mazda guest on AAH.
1. I pushed the MX5 on the autocross at the Meadowlands, but failed to get it to understeer. How did you guys to that?
2. The interiors of the MX5 and CX3 are so sharp I wonder what Mazda is thinking.
3. Why no telescoping steering wheel in the MX5. I don’t fit because my short legs mean my carrying case for a head is being driven into the roof.
December 9th, 2015 at 12:21 pm
At last count, my family has owned about 70 Hondas over the last 30 years or so. That gives you a bit of a feel for a “slight” bias coming to this vote for NACTOY. Currently have an Acura, a Ford and a Mazda.
The new Civic is getting great reviews and it has always been a reliable beast – even if some models have been a little below my own expectations. So, my COTY would go to the Civic.
Before switching to Honda as my first checkpoint for a new car, I owned several Volvos. The company refused to deal with quality and warranty issues so I have never returned. That said, I understand they are starting to produce some desirable vehicles. Again, we all have biases
I have a small emotional tug from the Volvo, so the TOTY is a little tighter for me but I still think I would trust the Honda. It is rated well by CR and other reviews have recommended it as better than the previous model. So this vote again goes to Honda – the Pilot
December 9th, 2015 at 12:28 pm
Considering two of the cars are essentially 2 seaters the Chevy Malibu would be my choice for pass car. I’m not sure about truck, Gut tells me the Volvo but the Nissan is getting a lot of press.
December 9th, 2015 at 12:30 pm
My household buys new cars more frequently than the average US household. Here is my “insight” to Nissan’s sales problem – support your customers, there are way too many other options today. Had a 2011 that lost it’s AC compressor just outside of warranty. Yes I get that it was no longer covered, but AC compressors are not new technology I would have been happy to have split the cost with me paying the labor. Nope got the whole bill. My 2014 the HVAC system does not work correctly. No trouble codes, but there is a TSB and NHSTA complaints for the issue. No dealership will fix the issue. Looking at replacing 1 or 2 vehicles next year – guess who is not on the shopping list?
December 9th, 2015 at 12:35 pm
NACTOY Prediction
Mazda MX5
Volvo XC90
Nissan’s truck business troubles is due to the fact that their vehicles miss the mark when it comes to appearance. Style may not be a primary consideration, but when all things are equal, style carries the day. In my opinion, Ford and GM vehicles have functionality and look good and have for quite some time.
December 9th, 2015 at 12:39 pm
Tough call for COTY. All really good vehicles. My guess would be the bread-and-butter Malibu simply because it has a much broader market and is so good in that market. For truck/utility? Volvo.
December 9th, 2015 at 12:41 pm
It’s no wonder that Nissan has a “truck problem” in North America. When all of the products are, by most accounts, worst in class, you are not likely to have a big market share. We’ll see if the new Titan does better.
December 9th, 2015 at 12:46 pm
I’d say Malibu and Titan.
Most of what I’ve heard, so far, is that the new Malibu fixed the biggest thing wrong with the outgoing one, lack of rear seat space, while keeping the strong points, quietness, ride, and intuitive controls. Also, the new one will be available as a serious hybrid.
For trucks, probably Titan, if for no other reason than it is replacing a very long-of-tooth outgoing one. Also, its offering the Cummins diesel V8 might go in its favor.
December 9th, 2015 at 12:52 pm
Honda all the way! Honda Pilot for Truck of the Year and Honda Civic for car of the Year.
It amazes me that the 2016 Chevy Volt looks so much like the Honda Civic. The Volt needs to be the size of the Malibu to increase sales at that price point.
Carlos Ghosn is a very smart businessman, however the pickup truck business does not need another large or XL variant. Mr. Ghosn should concentrate his efforts on a global small to mid size pickup truck which meets or exceeds all safety and fuel economy standards around the world with very little variation between market regions. This I believe would be a more profitable game plan for Nissan.
Also what about test marketing some of those five door Renault Hatchbacks in North America as rebadged Nissans. These would be great vehicle targeted at Millennials or Car Share Companies.
I have ridden in those Nissan NV200 Taxi Cabs in NYC and found them to be a bit too narrow for my taste. What about plumping them up in the shoulder room area for us big guys in a suit and tie running from meeting to meeting in Mid-Town.
December 9th, 2015 at 12:56 pm
I look for a Honda sweep at the Car & Truck of the Year. The Malibu looks to be a great car but without many on the streets yet, it’s hard to pick it as a winner. The Civic had had pretty good sales numbers.
As for trucks, the Pilot is the only one that will have any real impact. The Volvo is a niche player and the Titan is pretty much a yawn; another attempt to break the Dodge/Ford/GM stranglehold.
I know this isn’t a sales contest but I think the judges are less influenced by hype than the actual product.
As for NHTSA moving the 5-star goalposts, this move will continue to save more lives and lessen injuries.
December 9th, 2015 at 12:58 pm
For me, the Truck choice is very simple. Volvo. Why? Because the other two entries don’t break any new ground, and the Volvo brings great styling and true technical innovation with its line of 4 cylinder powerplants and the Hybrid model that yields segment-busting fuel economy for this size vehicle.
The car choice is not as clear, but I would give a slight nod to the Malibu because of its model variations and how GM pushed hard for this one to be segment leading as opposed to mid-pack like the last one. Of course, one could say the same about the Civic, so its kind of a tossup between those two. Love the Miata, but its really just a nice improvement on the same formula we have seen. Great little sports car, but no breakthroughs here.
December 9th, 2015 at 1:09 pm
9 Since the Civic looks kind of like the Volt, they should make a hatchback version, like the Volt. That would make it much more appealing to some people, like myself.
Yes, I know. Americans don’t like hatchbacks, except for tall, boxy ones.
December 9th, 2015 at 1:12 pm
I’m going with the Nissan Titan XD for Truck of the Year. Not just because splitting the light and heavy duty segments is pretty smart, but just for sheer determination. Nissan makes some very good product but the commercial marketing guys are totally clueless. D’oh!
December 9th, 2015 at 1:18 pm
Hands down truck, Titan XD. Auto, Miata.
December 9th, 2015 at 1:22 pm
Question about the Mazda CX-3, for Autoline After Hours: Why wasn’t the car built on the Mazda 3 platform instead of the Mazda 2?
December 9th, 2015 at 1:34 pm
@Kit – The new Civic will be offered as a 5-door hatchback in the American market.
December 9th, 2015 at 1:37 pm
17 I’ve read that it will be the European one, and will be coming later, like in the spring. Is that correct? I look forward to seeing it.
December 9th, 2015 at 1:51 pm
@Kit – That’s my understanding. I look forward to it as well.
December 9th, 2015 at 1:56 pm
There is only one truck the titan the others are station wagons .I don’t care what they say !
December 9th, 2015 at 2:08 pm
Nissan is not the first to try the “tween” approach in the pickup market. Both GM and Ford have done this in the past, just not with a diesel powertrain. Nissan is offering something that no one else is currently. Though with no real groundbreaking innovations, I don’t see the Titan winning this one.
December 9th, 2015 at 2:14 pm
Being a Honda fan, I’ll go with the Civic and the Pilot.
Nissan is pissing against the wind with their Titan. Way too much great competition in that segment. They should have brought out a new “mini truck”, a size greatly needed in this market.
December 9th, 2015 at 2:25 pm
Nissan truck concerns are deeper than a management change can fix. The large NV vans look outdated compared to Ford, Ram, and Mercedes. The full-sized pickup just doesn’t capture the attention of the truck buyers like the big 3. More patience (and money ) will be needed to capture market share.
December 9th, 2015 at 2:38 pm
Now wth did nissan expect Diaz to do,with ancient trucks?? The frontier suffered as bad as the taco did with only mild refreshes,and the same tired inefficient power trains…..for the better part of 10 years.
Although the titan is a very good truck,it was a total gas hog.Back to the ancient frontier,they still don’t have an all new model yet.Sure,there’s supposed to be one due out in 17,or 18,but they are still selling 10+ year old new trucks.
I like nissan,but I wouldn’t buy any of their trucks/commercial line.Thier nv200/chevy city express is just plain nasty.Thier larger nv’s are built like a battleship,look like a battleship,and STILL suffer the same old powertrains.
They hired Diaz to turn things around,but it’s impossible without the right tools and backing.It can’t happen in a span of a few short years,they need NEW product.
December 9th, 2015 at 2:54 pm
TOTY: Nissan Titan,hands down.Although,I wonder why GM’s diesel midsize twins aren’t in the running.The diesel versions have a TON of innovations in a new midsize truck.I just don’t get it.
December 9th, 2015 at 3:00 pm
Ferrari should grab their equine ankles and thank Lord Toto the Wolf that Mercedes didn’t wait until engineer Hoyle actually started working at the Scuderia before they let loose their lawsuit. (Oh, and stop promoting cigarettes in Asia while you’re maintaining face.)
nope, I’m not a big fan of the current Ferrari. oth this…
https://www.youtube.com/watch?v=KHgD0wJGcR0
December 9th, 2015 at 3:01 pm
I’m going to go with the Malibu and the Pilot; I’d like to go with the Colorado diesel but that’s not a choice (of course the Volvo isn’t a truck IMO), but what-ever.
I’m not buying the ‘tweener’ description that Nissan is trying to allocate to their Titan because I don’t think there is enough distinction between a full-blown 1/2 ton from Chevy, Ford, or Ram and their X-D. Half tons have grown so much in the last ten years that the nomenclature ‘tweener’ probably describes all the 1/2 tons compared to the 1/2 tons of not so long ago.
December 9th, 2015 at 3:23 pm
Honda and Volvo
December 9th, 2015 at 3:27 pm
It’s crazy to me, how these terms “half ton,” “three quarter ton,” etc. hang on. I just looked up the payload of a Silverado 1500, and it is 1800 pounds. The F150 and Ram 1500 would be similar. I guess old nomenclature dies hard, at least among pickup truck fans.
December 9th, 2015 at 3:35 pm
26 Great video, and great, fast driving, but without abusing the machinery.
December 9th, 2015 at 3:58 pm
@ Chuck G: The innovation with the new Titan diesel isn’t just with the engine.It’s mostly all the underpinnings.They are top shelf heavy duty stuff.All new frame,diffs,suspension et al.It really is an all new truck,and much more capable than any of the 1/2 ton offerings.But you bring up a good point about the size,they are all huge compared to what I was buying through the 80′s and 90′s,and even the early part of the 2k’s.
December 9th, 2015 at 5:03 pm
If anyone wants to take a significant number of pickup sales from Ford, Chevy, or Ram, they need to sell a basic S-10/Ranger size truck, for a reasonable price. Even Chery or Great Wall could sell the heck out of a basic truck for $14K. There are plenty of idled assembly plants in the U.S. that they could buy, to skirt the “chicken tax.”
As far as the new Titan, I don’t think Ford and Chevy are worrying too much about it, even if it is really good. Buyers of big pickup trucks are, for the most part, a brand loyal bunch, at least the ones I know, and I know quite a few pickup drivers in Indiana. Also, none of the pickup drivers I know need a “slightly heavier duty” truck. None of these people haul anything heavy in them, and the biggest thing they tow is about 3500 pounds of boat/trailer.
December 9th, 2015 at 5:34 pm
@ Kit: Oh yeah,an s10/ranger sized all new truck would be the ticket,for many people.Not many seemed to care about buying datsons the chevy luv etc back in the 70′s.Those trucks were everywhere.
As far as the new Titan goes,I’m at a loss for understanding a ‘tweener’.A diesel 1/2 ton for towing,yes,absolutely,but a big V8 Cummins diesel,I just don’t know about that one.
IMHO,a good beefy V6 diesel would do the job,and keep expenses down somewhat.
December 9th, 2015 at 5:42 pm
Regarding the car and truck of the year, I believe that the Honda Civic will win in the car category, primarily because if the many improvements made fro the last model. It should retain top selling auto in Canada. As far as the truck category I am picking the Nissan Titan. Looks like a decent truck, not a 3/4 ton and more like a 1/2 ton, but with an extremely powerful engine in the Cummins. I do think it looks very much like the last version of the F150.
December 9th, 2015 at 6:04 pm
The V6 diesel in the Ram apparently works pretty well, but it ain’t cheap, and wouldn’t be cost effective for many people.
December 9th, 2015 at 7:38 pm
I just checked the NACOTY “eligible” list, and saw multiple cars I’d put above any that made the final three, Camaro, Prius, and Volt. It looks like the jury is anti-hybrid. You can’t say they are anti-GM, since the Malibu is on the list, but the new Camaro is a much bigger step forward than the Malibu.
December 9th, 2015 at 9:25 pm
IMO the Volvo XC90 is the clear choice in its category.
December 9th, 2015 at 11:56 pm
I bought a new Titan several years ago. No problems so far. It is a tweeter too. The g.v.w. Is 7100 lbs, a thousand pounds heavier than the completion and rides much smoother than a 2500 series truck. The biggest problem I had was trying to buy one. The dealers don’t stock them and the sales people have little to no product knowledge. I live in Connecticut and I could only find three for sale in the entire state!
December 10th, 2015 at 8:21 am
The biggest problem with introducing a mini pickup is it growing with each refresh. Its like buying a camper or boat. Once you have one, people want a bigger one. So even if they introduce a mini pick up after two updates it becomes a mid-level sized truck.
December 10th, 2015 at 8:30 am
Nothing short of a redesign is going to boost the sales of that butt-ugly Nissan NV.
December 10th, 2015 at 9:05 am
I vote for the new Titan XD, mostly because of the Cummins engine. Like comment #1 above, I refuse to consider any Nissan car until Nissan gets a top executive who hates CVTs as much as I do.
December 10th, 2015 at 9:31 am
It seems that everyone hates CVT’s, except people who actually drive them on a regular basis.
December 10th, 2015 at 10:32 am
#32 I think CVTs are an acquired taste. It takes some getting used to driving something that sounds like the transmission is slipping. Having grown up around snowmobiles I was fine with it but it does take some getting used to.. Biggest downside I see to them is putting them in the CUV’s leaves little to no towing capacity. Which puts into question their robustness.
December 10th, 2015 at 10:33 am
Opps that was to you kit #42 uhhg hate not being able to edit.
December 10th, 2015 at 7:05 pm
Honda wins…although I think the Volvo is better. But what me matter…I’m from Cleveland!
Thom
December 12th, 2015 at 11:07 am
Nissan gets my vote, since it is the only “TRUCK” on the list.