AD #1951 – Chevrolet Reveals 2018 Equinox, Tesla Sues Michigan, Threats to Auto Industry Growth

September 23rd, 2016 at 11:49am

Runtime: 10:25

To watch this episode on YouTube click here.

- Chevrolet Equinox Gets Turbo Diesel
- Bentley Bentayga Gets 48V Diesel
- Smart fortwo EV Gets Limited Range
- Lexus UX Has Holographic Displays
- Tesla Sues Michigan
- ZF Emergency Steering
- Auto Industry Threats

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32 Comments to “AD #1951 – Chevrolet Reveals 2018 Equinox, Tesla Sues Michigan, Threats to Auto Industry Growth”

  1. Kit Gerhart Says:

    I heard on the local news that Indiana has an anti-Tesla law in the works. I missed the details, but it sounded like Tesla may be forced to stop selling directly to customers in the state.

  2. C-TECH Says:

    I hope Tesla wins its suit

  3. Vic Says:

    Tesla should be allowed to sell in any manner they want. I find it amusing that auto dealer associations proclaim that they are better, but still claim they need legal protection. If the franchise dealer system is really better, then it will succeed despite Tesla’s efforts, without the help of franchise laws.

  4. rick Says:

    suv 40 mpg highway, amazing 40 hwy mpg in an suv hopefully this will be the one that forces these behind the times gas stations in U.S. to finally have diesel fuel nozzles for cars in every gas station. ford and gm are doing incredible job leading way in lightweighting and modern powertrains. ford starting with trucks f150, superduty, expedition/navigator gm with cars and now on to suv,s

  5. XA351GT Says:

    Considering that Tesla only sells 2 models and a 3rd coming in the future I see no reason they need to set up a dealer network . Just more overhead to drive up prices more.

  6. Kit Gerhart Says:

    I had a diesel car for a while, and while not all stations have diesel fuel, enough did, that getting fuel was not a problem at all. It helped that the car, a 1.9l VW TDI Jetta wagon always went at least 500 miles on a fillup, and 700 miles a few times.

  7. Steve W Says:

    #5 Tesla prices are already too high especially when you take into consideration the additional charges after you own the vehicle to update a longer mileage range for the battery which should have been included to begin with. Tesla had to have these “improvements” but was just waiting to take in more profit from their customers.

  8. Jon M Says:

    As the plaintiff, Tesla is going to have the burden of proof as to why they are an exception or how the law doesn’t apply to them. Personally, I don’t see why they should be able to get around franchise laws, and frankly I wouldn’t trust that Tesla would be any better to deal with than a franchised dealer. I’d be just as interested in hearing the arguments from both sides as I would the verdict…if it makes it that far.

  9. Lex Says:

    I also hope Tesla wins it lawsuit C-Tech. I have been invited to the opening of a new Tesla Showroom in Greenwich CT early next month. I hope to see a Model 3 in the new showroom.

  10. Lex Says:

    That New Chevy Equinox likes good. I was hope that it would have been offered in a EV version.
    Will the GMC Terrain have a similar body/platform structure and power plants or will it follow the Buick Envision?

  11. Kit Gerhart Says:

    10 Won’t the Bolt be kind of an electric Equinox? The Bolt is a little smaller, but both are tall wagons, close enough in size that Bolt and an Eq EV would compete with each other.

  12. MARSHALL Says:

    I live in MI and hope Tesla wins.

  13. Dan Turnpaugh Says:

    I hope GM is smart enough to put the fuel filler on the drivers side with the new Equinox, all vehicles should have fuel filling on drivers side.

  14. Bob Wilson Says:

    Apparently today’s claim by the “Center for Automotive Research” about losing “1.1 million jobs” if the CAFE targets are not gutted was not in time for the ‘Autoline This Week’ discussion. But now we know how many extra jobs it takes to build inefficient cars.

    Truth is blaming for ‘job loss’ is a ‘dog whistle’ dragged out whenever someone is falsely trying to change public policy. Experience has shown building efficient cars makes more jobs due to more parts and higher skills. These skills in turn lead to higher paid jobs.

    Work smart and you’ll raise everyone’s pay making new industries and suppliers never seen before. Work dumb and we are condemned to the easily, off-shored industries of yesterday.

  15. MJB Says:

    Perhaps a silly question here, but what are the real benefits of having a dealer network in the first place?

    It couldn’t be a means by which automotive safety or quality standards are upheld, because there are other arbiters that regulate such matters.

    Perhaps this is a bit naïve (and someone here please interject if I’m missing anything, but) if I were Tesla’s legal team, I’d argue not just for Tesla’s exemption, but the abolishment of the dealership network requirement altogether. As an entrepreneur myself, I admire everything about Musk.

    Fight the power, Tesla! Fight the power! ;)

  16. Kit Gerhart Says:

    15 To me, the benefits of dealer networks are that the provide a place to buy cars, trade used cars on new ones, and a place to go for warranty repairs, if needed. Yeah, the buying process is often very unpleasant, especially if you want to trade in what you have.

    I’ve been to a Tesla store once, in a fancy mall in Indianapolis. They had one car to look at, and none that you could buy. They have no service facility. What do you do if the car breaks? I guess someone comes and tows it to an unknown location, and then brings it back in a few days. Are there any Tesla owners here that can tell us?

    If Carmax, or someone like that had stores everywhere that sold and serviced all brands, including warranty work, that would certainly be a replacement for the current dealer networks.

  17. BobD Says:

    I’m impressed that GM is still moving forward with their diesel engine in light vehicles. Last year they announced the 1.6L turbo diesel would be in their second generation 2017 Cruze, just before the VW scandal broke. I assumed that engine option was now dead, since there has not been a peep on the engine since then. The 2017 Cruzes are now here, but it still does not show up as an option on the Chevy website or their “build it” configurator. Perhaps it will be a mid-year addition. I think it was supposed to get 50+ mpg highway in the new Cruze (the first generation diesel was was rated at 47).

  18. Rick W Says:

    John,
    I didn’t get to watch yesterdays AAH Live, so I was unable to ask any questions while your Fiat guest was in studio.
    But maybe you can help though.

    Is the Fiat 124 available for sale in the US now and if so, how much does it cost.???
    I love the styling and would consider it after doing some more research and if the pricing is right.
    Thanks,
    RickW

  19. BobD Says:

    Automotive franchise laws are way outdated, but would also be a mess to undo. Having independently owned dealerships is a huge expense the manufactures do not have to bare, but it also means the OEMs do not have ultimate control over the quality of service and salesmanship that can make or break the reputation of their products. I suspect Tesla will have a very uphill battle to over turn the inertia of the judicial system that has upheld previous franchise challenges.

  20. Kit Gerhart Says:

    18 I saw a 124 about a month ago at Port Canaveral, FL. I thought it looked really good. The base price is $24,995, according to the Fiat web site. I don’t know if that includes “destination.”

  21. Sean McElroy Says:

    @Rick W – Yes the Fiat 124 Spider is on sale in the U.S. right now. Here are the prices for the 3 trim levels, including destination charges:
    Classica: $25,990
    Lusso: $28,490
    Abarth: $29,190

  22. Kit Gerhart Says:

    They need to offer a bigger motor in the 124 Abarth. Fiat has a 2 liter turbo that, I hear, works well. Most of what I’ve read is that the Miata motor works better than the laggy 1.4 turbo engine in the 124, at least with the manual transmission.

  23. Lex Says:

    @11 – Kit, The Bolt almost looks like an egg with wheels. It is not main stream enough for my taste. The trunk space in the Bolt is very small with all seats upright. The other thing is the name “Bolt”. When people ask you what you drive and you say a “BOLT”! The next thing out of their mouths is you must be a “Nut”! You should have waited for the Tesla Model 3! It will have the similar range and its a Tesla and not a Cheap
    Chevy!

  24. Lex Says:

    I thought GM was going to put the 2.5 litre four banger mated to a CVT in the new Equinox and Terrain?

  25. Kit Gerhart Says:

    23, Lex
    The Bolt is only a little smaller than the outgoing Equinox, and the new one, from what I’ve read, will be smaller, so with the space lost to batteries, I wouldn’t expect an EV Equinox to have much, or any more cargo space than the the Bolt. Yeah, some people won’t like the non-trucky appearance of the Bolt.

    As far as the Tesla Model 3, I’ll wait and see. I may be in the minority here, but I’d rather buy a car from a place that actually sold and serviced cars, rather than from a small storefront in a mall. Yeah, maybe that’s just me.

  26. Kit Gerhart Says:

    24 It looks like they will use 1.5 and 2.0 liter turbo gassers, and the turbo diesel.

    http://media.chevrolet.com/media/us/en/chevrolet/home.detail.html/content/Pages/news/us/en/2016/sep/0922-2018-equinox.html

    Soon, we have have to get a hybrid, if we don’t want a turbo engine.

  27. Chuck Grenci Says:

    Personally I’d rather have a Bolt (soon) than a Model 3 (sometime), especially if I were in the market now. Chevy has been raking up the ‘awards’ lately so I wouldn’t consider them as a cheap product (meaning junk); if the Model 3 doesn’t do well, then maybe Tesla might go away (leaving orphans). I think Chevy going to be around for a while (in any event). I think Kit is spot-on in his eval on the Bolt’s size, and the Equinox, though smaller than the outgoing one, supposedly has more interior room (plus the 400 pound reduction in mass; good show there).

  28. FSTFWRD Says:

    I think Tesla should be able to sell direct. The problem with taking that approach across the industry is that most manufactures have put heavy demands on the dealerships that cost the retail dealership a fair amount of $$$. I have no idea what a Tesla dealership cost or what kind of investment the dealerships have made, but if there are no dealerships why should any government (state or federal) tell them how to sell their product?

  29. Chuck Grenci Says:

    If Tesla wins, and gains the advantage to sell directly to the public, would this then open others manufacturer’s to do the same? And if not, why?

  30. Kit Gerhart Says:

    Do other manufacturers even want to sell directly? If so, I suspect they would want to do so selectively, like in large markets. GM and Ford couldn’t afford to buy out all of the thousands of dealers, even if they wanted to.

  31. BobD Says:

    I could see a scenario where the OEMs would sell directly for “ordered” cars that would then be delivered to a dealer for final prep and documents. The OEMs would pay the dealers a reasonable fee for that service, but it would cut out the salesman’s commission and the dealers would not have the expense of inventory for those vehicles sold directly. Dealers would continue to provide service and parts. This hybrid system would need careful balancing to keep the dealers in the loop, yet improve the overall efficiency of selling vehicles.

  32. Druff Says:

    The problem I see with no dealer network for cars is trying to get service after the sale. Would you really want to have to call some big corporate office in Detroit every time your car makes a funny noise. I own an RV and the dealers on all of them are franchised but not obligated to work on them, every time you need a repair under warranty it takes several weeks to get it done, is that what people really want for there cars too.