AD #1985 – NAFTA Important for Competitiveness, Audi Accused of Having Bad Gas, L.A. Eye Candy
November 10th, 2016 at 11:50am
Runtime: 7:59
To watch this episode on YouTube click here.
- NAFTA Important for Competitiveness
- Audi Accused of Defeat Device on Gas Engine
- New Long Wheelbase Porsche Panamera
- Refreshed Nissan Versa Note & Juke Black Pearl
- Kia Soul Gets a Turbo Engine
- VW Golf Family Refresh
- MG Jumps Into Hot Crossover Segment
- Bob Lutz Disses Continental’s Front End
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On today’s show… uh-oh, now Audi is accused of cheating on emissions with a gasoline engine, if Trump, as president, rips up NAFTA it could hurt automakers and suppliers and Bob Lutz does not like the front end styling of the Lincoln Continental. No sir, not at all. All that and more coming right up on Autoline Daily.
This is Autoline Daily the show for enthusiasts of the automotive industry.
NAFTA IMPORTANT FOR COMPETITIVENESS
Donald Trump says he wants to rip up the North American Free Trade Agreement and start over again. That sent chills through companies that manufacture in Mexico and Canada. The NAFTA region is the second largest automotive market in the world, just behind China. And light vehicle sales in both Mexico and Canada are going well this year. Sales in Mexico for the first 10 months hit 1.2 million vehicles, up a strong 18%. Sales in Canada are over 1.6 million, up 2.5%, and headed for an all time record. While NAFTA is a hot political potato regarding manufacturing jobs, automakers and suppliers strongly back the agreement. In fact, ripping up that agreement would severely hurt their competitiveness.
AUDI ACCUSED OF HAVING BAD GAS
Volkswagen is still dealing with its diesel scandal more than a year after the emissions cheating scam was revealed. But things could get a lot worse. Now Audi is accused of using defeat devices in 3.0L gasoline engines. Bloomberg reports a consumer lawsuit on behalf of 100,000 owners, says the software was installed in several Audi models since February 2013. Affected models include the A6, A8, Q5 and Q7. They also accuse Audi management of encouraging the installation of the defeat devices as recently as this May. VW and Audi declined to comment. The devices are able to shift the vehicle into a “low rev” mode if it recognizes the its undergoing an emissions test. By keeping the RPM low it looks like the vehicle is emitting less CO2 and using less fuel. We’ll have to wait and see if this is true. But if the cheating software worked so well for the diesels, why wouldn’t the company use it for its gasoline engines as well?
There’s a lot of eye candy coming to the LA auto show next week, and we’ll give you a sneak peek right after this.
LA EYE CANDY
With the LA auto show right around the corner, we’re getting a number of reveals ahead of the action. We’ll start with Porsche who is going to offer a new long wheelbase version of the Panamera. The car is 150 millimeters or about 6-inches longer and can be had with a new 330-horsepower turbo V6. But also has the option for the plug-in hybrid all the way up to the top-of-the-line Turbo model with 550-horsepower. Other features include a newly developed rear center console with fold out trays and wireless phone charging and the option for removable 10-inch display screens. Next on our list is Nissan with a newly refreshed Versa Note and an exclusive version of the Juke, called the Black Pearl Edition. The 2017 Versa Note features a reworked front end, new bright color options and a few new wheel designs. The Black Pearl Juke comes with a unique black exterior and interior contrasted by white accents. Production will be limited to 1,250 units. Kia is going to show off a new Turbo version of the Soul in LA. It comes with a 200-horsepower 1.6L turbo engine that’s mated to a 7-speed DCT. It also includes specialized trim and sportier features, like 18-inch wheels and dual chrome exhaust tips. The Golf family is getting a number of updates as well. On the outside you’ll notice new front and rear bumpers and LED headlights and taillights. Inside, the automaker has done away with its old boring infotainment screen in favor of new larger touchscreens with the option for gesture control. Other new technologies include a big 12.3-inch digital instrument cluster that can be reconfigured a number of ways, which I’m sure is plucked right from Audi. The Golf family also gets Traffic Jam Assist and Emergency Assist for the first time.
MG JUMPS INTO HOT CROSSOVER SEGMENT
The compact crossover segment is the hottest in the world. And it’s about to get more crowded as an old nameplate is being revived to join the segment. Chinese automaker SAIC, which bought the British MG brand in 2007 just released this sketch of a vehicle codenamed ZS. It’s a good looking vehicle that was designed in both England and China. It will go on sale as an MG in China next year where it will go head to head with vehicles like the Nissan Juke.
Coming up next, Bob Lutz does not like the front end styling on the new Lincoln Continental. No sir, not at all. And that is coming up next.
A FACE ONLY A MOTHER COULD LOVE
Bob Lutz has a thing or two to say about the new Lincoln Continental. One thing’s for sure, he does not like the front end styling. Here’s what he had to say about the car on last week’s Autoline After Hours.
(Clip from Autoline After Hours with Bob Lutz can only be viewed in the video version of today’s show.)
Lutz had more to say about Lincoln on that show and you can watch that on our website anytime you want.
Then, don’t forget to join us this afternoon for Autoline After Hours when we go live. Today’s show will be a free-wheeling roundtable talking about the latest news and no doubt the crew will have a lot to say about what a Trump Administration might mean for the automotive industry. Joining us for today’s show are Mike Wayland, from The Detroit News; and Todd Lassa from Automobile magazine.
And that wraps up today’s report, thanks for watching and please join us again tomorrow.
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Comments (18)
November 10th, 2016 at 12:15 pm
The latest Audi cheat sounds like what could be called “eco plus” on a car with multiple drive modes.
This bring up something that you might know, Sean. On cars with multiple drive modes, like my Corvette, are the tests done in the mode that would give the best mpg, probably “eco” on my car, or the default, which is “touring” on the ‘Vette?
November 10th, 2016 at 12:24 pm
Yeah I bet companies are nervous about NAFTA. They may have to bring jobs back and pay someone a decent wage instead paying a Mexican 2 Tacos and a tequila a day to build cars and then sell them here for big money. IMO NAFTA screwed the American worker ,but gave the corporations a huge ability to make tons of cash.
November 10th, 2016 at 12:30 pm
@Kit – I don’t know for sure, but I would be willing to bet they are.
November 10th, 2016 at 12:32 pm
I agree with Maximum Bob about the Lincoln styling. There is something wrong with the proportions of that grille. Too bad. I recall another car that was a pretty good vehicle but had a weird grille which killed sales. I think its name was Edsel!
November 10th, 2016 at 12:36 pm
Manufacturers are required to test in all modes on multiple mode vehicles. If they recommend regular gas they also must show no change in fuel economy on regular gas verses the normal test fuel that is premium octane.
November 10th, 2016 at 12:44 pm
I’ve seen that new Continental on the road several times over the past few weeks. Back when production photos had just been released, I criticized the rear for looking too much like a 2006 Hyundai Azera. Now that I’ve seen it in person, I no longer need to speculate. It wasn’t just the photos playing tricks on me.
Lincoln:
http://pictures.topspeed.com/IMG/crop/201601/2017-lincoln-continental-27_1600x0w.jpg
Azera:
http://www.cstatic-images.com/stock/900×600/236529.jpg
Don’t get me wrong though. I DO like the styling. If I never had the Azera visual reference floating around in my head, I’d be able to fully appreciate the Conti.
November 10th, 2016 at 12:57 pm
In some ways, I am surprised that VW/Audi would further risk their reputation by continuing to cheat. In other ways, not so much. #don’ttrustanythinganymore
November 10th, 2016 at 12:58 pm
My understanding is that the President has veto power for all trade deals. So it is possible that President Trump could kill NAFTA. While this would cause all kinds of chaos in many industries, we in Canada might actually benefit from a bilateral trade deal with the USA. Unlike Mexico and China, our workers make a good wage so it is unlikely that vehicles and parts from Canada would negatively affect US jobs.
November 10th, 2016 at 12:59 pm
John, There is more to NAFTA than tariff and competiveness. The car companies will remain competitive regardless of NAFTA or GAT. They are survivors. NAFTA is a disaster from the beginning. Between 1994 and 2010, the U.S. trade deficits with Mexico totaled $97.2 billion, displacing 682,900 U.S. jobs. Nearly 80% of the losses were in manufacturing. US wages were then suppressed. Those industries remaining in the US gave their workers a choices; relocate to Mexico or take a pay cut. And I haven’t even touched on the impact to Mexican workers.
November 10th, 2016 at 1:41 pm
NAFTA ushered in the demise of over 70k factories.By any standard for Americans,how can that be called good.
@ John Mc: Please don’t invite any more political discussions here.
November 10th, 2016 at 1:49 pm
Mr. Trump’s promises to kill NAFTA and build a wall go together. If the Mexican factories close, the flow of people across the U.S/Mexican border would again be northbound, rather than southbound as it is now.
November 10th, 2016 at 2:49 pm
#9. I was ready to agree with you, until I saw AAA headline. It can’t be done.
November 10th, 2016 at 4:06 pm
Before NAFTA there was the autopac between Canada and the U.S. Much of the angst about NAFTA has little or nothing to do with automobiles. As I recall, (mainly because I am old), the old autopac which was free trade specifically about cars & trucks, was a success. Its success led the governments to want to expand it to everything.
I agree with Mr. Lutz that the production Lincoln lost a lot in the looks over the concept. Too bad because I loved the concept. But, my goodness, it may just be me but I have never liked the Cadillac front end since ‘art & science’ and it’s getting worse.
November 10th, 2016 at 4:49 pm
NAFTA helped cripple the UAW before it almost succeeded in wiping out the domestic auto industry(and itself). So, to a degree, NAFTA helped save the American manufacturers (and the jobs they provide). Does Mr. Trump understand this?
November 10th, 2016 at 4:54 pm
I liked the Continental concept better than the production car, but I don’t understand Lutz disliking the oroduction car THAT much. I think it looks ok, but generic. I like the Cadillacs better.
November 11th, 2016 at 8:42 am
#13
There were people on both sides of the table when those union labor contracts were negotiated.
Blaming the UAW for the ills of the auto industry is pretty shortsighted. The car companies could’ve negotiated better, perhaps?
November 11th, 2016 at 11:07 am
The companies gave away a lot during the 50′s, 60′s, and 70′s, when they owned most of the U.S. market, and wanted to avoid strikes.
From my perspective, in process support in a GM/Delphi facility, work rules were the biggest UAW-related problem. In some cases, the rules required three skilled trades people to do a job that any one of them could do in two minutes. Sometimes, hours of production were lost because of this. Of course, both sides signed the contract.
November 11th, 2016 at 11:28 am
I’m not convinced that ripping up NAFTA will hurt much of anything long term. What that agreement ultimately provided more cash flow to the upper corp coffers and the expense of workers wages and to public coffers. A few guest (Hal Sperlich come to mind) have suggested modifying the manufacturing model to scale to smaller production plants. I find it interesting that the base price of a Buick Verno for example can be sold for 6K less in China than in the US. Having a “sell it here, make it here” policy has worked well for many countries. It then would put labor in each market the ability to earn higher wages without necessarily damaging corporate profits. It would also provide a greater volume of dollars into governmental coffers.