AD #1987 – Samsung Bolsters Automotive Business, Toyota Feeling a Little Rusty, 48V Technology to Bridge EV Gap
November 14th, 2016 at 11:35am
Runtime: 8:02
To watch this episode on YouTube click here.
- Samsung to Buy Harman
- Toyota Settles Frame Rust Lawsuit
- Continental’s 48V Technology
- Ram Shows 2 New Models
- Consequences of Leaving NAFTA
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On today’s show… Samsung continues its expansion into the automotive industry, Ram reveals a new special edition of the Rebel pick-up and auto supplier Continental says 48V hybrid systems are set to explode in popularity. All that and more coming right up on Autoline Daily.
This is Autoline Daily the show for enthusiasts of the automotive industry.
SAMSUNG STRENGTHENS AUTOMOTIVE BUSINESS
Samsung is making a big push to break into the automotive business. It invested $450 million into Chinese automaker BYD earlier this year and it’s held talks with FCA about acquiring auto parts supplier Magneti Marelli. The status of that deal is unknown at the moment. But earlier today the company revealed it spent $8 billion to acquire Harman International Industries, which makes audio systems for cars and connected car technology. Harman’s products are in more than 30 million vehicles worldwide. Analysts say Samsung is expanding into the auto industry in order to lessen its reliance on smartphone business, which is slowing down. The deal is still subject to regulatory approval and is expected to be finalized sometime next year.
TOYOTA FEELING A LITTLE RUSTY
Toyota has agreed to settle a class action lawsuit over pick-up truck frames that are prone to rusting. Reuters reports the company will pay up to $3.4 billion to replace frames and reimburse about 1.5 million truck owners. The vehicles didn’t receive proper rust protection, and that could lead to corrosion that impacts the trucks structural integrity. Affected models include Tacoma’s from model year 2005 to 2010, Sequoias from 2005 to 2008 and Tundra’s from 2007 and 2008. As part of the agreement, Toyota must inspect vehicles for 12 years from the day they were first sold or leased to determine whether frames need to be replaced and also reimburse owners who already had that done.
Still to come… Ram takes the wraps off a special edition of the Rebel pick-up truck.
48V TECHNOLOGY TO BRIDGE EV GAP
Giant German supplier Continental really sees the market for electrified vehicles ramping up in the coming years. By 2020 it thinks there will be about 4 million on the road and by the time 2030 rolls around nearly 70% of all vehicles in mature markets will be electrified. This, of course, means more pure EVs, but until that time Continental will bridge the gap with 48V hybrid technology. These are systems where a secondary battery stores power to control various functions on the car. This helps lighten the load on the engine to reduce emissions and improve fuel economy, but another added benefit is it can greatly smooth out stop/start systems. In tests Continental is seeing up to a 20% improvement in real world fuel consumption with its newest 48V system. And 48V will start becoming more common. Continental just announced the new Renault SCENIC MPV has its 48V technology and it’s ramping up with a U.S. automaker to hit this market in 2018. But the question for you, the consumer is, are you willing to pay the extra $900 to $1500 these systems add to the sticker price, for a 20% improvement in fuel economy?
RAM SHOWS TWO NEW MODELS IN LA
FCA is one of the best when it comes to bringing special limited edition models to the market. Not only do consumers seem to snatch them up, but they can also make a pretty profit for the automaker. And Ram will have 2 such models at the LA auto show. The first is a variant of the Rebel, called the Mojave Sand. The truck gets its name from its tan exterior color. Other differences include all-black seats with light-colored stitching, which also extends to the the rest of the cabin as does a number of black anodized accents. The next truck is an update of a package it offered last year, called the Ignition Orange Sport. While we don’t have pictures of the updated model, just imagine this truck with black wheels. There’s also a number of orange accents and orange stitching on the interior. The 2 special trucks are starting to hit dealers now.
Coming up next, a look at what could happen to the auto industry if President Elect Trump follows through with his promise to leave NAFTA.
CONSEQUENCES OF LEAVING NAFTA
There’s been a lot speculation as to how a Trump administration will affect the auto industry. Especially because of his proposal to leave NAFTA and on last week’s Autoline After Hours, John and his journalist panel discussed what the consequences of that could be.
(Clip from AAH #355 can only be viewed in the video version of today’s show.)
The guys had a really great discussion on a number of topics and you can watch that right now on our website, Autoline.tv or you can find it on our YouTube channel.
But that’s it for today. Thanks for watching and join us again tomorrow for the latest news in the global automotive industry.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
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Comments (9)
November 14th, 2016 at 11:50 am
About Trump and NAFTA, Trump will simply rewrite that agreement with Mexico. There maybe a tariff issue with cars coming over the border. But I see it all working for the better.
November 14th, 2016 at 1:39 pm
Agree with Jon M, and think he will have to find a way to keep it as is but spin it like he did something. Or else manufacturing in The US would actually shrink
November 14th, 2016 at 2:04 pm
I’ll say it again,the sky ain’t falling. Give the man a chance.Our trade agreements never favored us.Whatever he does,and gets passed by both houses will be the way it is.
November 14th, 2016 at 4:48 pm
Pres-elect Trump made several not-so accurate statements during the campaign and many are aware that he is already beginning to walk-back on several (within 1 week).
One of those was that the Dems (Bill Clinton) gave us NAFTA. While it is true that Bill Clinton was a supporter of NAFTA who eventually helped push approval through Congress, but it was negotiated and signed by President Geo H.W. Bush.
More Republicans than Democrats voted for the deal, as the trade pact was opposed by labor unions. Guess who pushed and aided Clinton for support? The then Minority-Whip and later Speaker of the House – Newt G.
NAFTA was the successor to a free-trade pact with Canada. Bush had viewed NAFTA as a political opportunity, an achievement for his reelection campaign. He initialed the deal in Aug 1992, before the GOP convention, and then formally signed it in December 1992, after he had lost the election to Clinton.
Clinton had said that he supported the pact during the presidential campaign in 1992 but he wanted to negotiate side agreements with Mexico concerning enforcement of labor and environmental laws. He didn’t pursue ratification in Congress until those agreements were reached in August 1993 – but those deals were denounced by labor and environmental groups – as too weak.
The real problem (IMO) is our membership in the WTO (World Trade Org). All of our legislators are now aware of it and yet nothing has been done to correct the fact that it (WTO) is a biased, undemocratic organization of over 150 nations that limits America’s ability to act in its own best interest. Nine out of ten times a complaint has been brought against the United States, the WTO panel has ruled against us.
It is going to be hard to ‘put America first’ as long as the WTO agreement remains in tact – as it now exists.
Again, JIMHO
November 14th, 2016 at 4:52 pm
I think it wiser to return the manufacturing of components to the U.S rather than the making of small cars. But perhaps it would be more realistic to stop giving away all of our technology and new developments to the many countries we deal with. Unfortunately, it has become a trend for manufacturers to share in many of the developments. maybe we have become caught in our own vortex.
November 14th, 2016 at 5:14 pm
How many times greater is the salary paid to Mary Barra or Mark Fields than what is paid to the line workers in their assembly plants or the workers in their suppliers. There is room for some belt tightening. The US Government Bailout the US Auto Industry, which Ford claims it did not receive a bailout – true, but the bailout did help save several of it’s suppliers which it relies on for components for their vehicles. Therefore Ford did benefit from the bailout. Look Chrysler was bailed out twice and it now owned by the Italians and is incorporated in London. What a travesty to the hard working US citizens who funded both of Chrysler’s two bailouts. The US Government has let down the American Worker again. The President Elect wants to create jobs so let’s give him a chance to do so and not belittle him every chance you get. The Silent Working Class has spoken in this election year and the press and media better start listening to them. If American do not have jobs then who is going to buy those imported vehicles?
If we did not have the Electoral College then the New York, Northeast and Southern California who decide nearly every presidential election. The Founding Fathers were very smart in building the Presidential Election process in this manner.
November 14th, 2016 at 6:20 pm
The Electoral College is a dinosaur that needs to be killed off, it is an insult to every one who takes the time and trouble to vote thinking that their vote really counts when in reality it doesn’t, it just goes towards a total in that particular state, and the electors don’t even have to vote the way the popular vote demands. Join the 21st century and help get rid of the Electoral College when you are asked to sign a petition or voice an opinion on the matter. For those that believe in the KISS principle, now is your time to put it into affect concerning how we elect a president.
November 14th, 2016 at 8:37 pm
# 4…I was of the openion that NAFTA was negotiated and signed by Ronald Reagan.
November 15th, 2016 at 9:10 am
Leaving NAFTA, oddly enough the US survived before NAFTA, it is likely we will survive after. NAFTA has contributed to wage stagnation in this country. That is not a good thing when governmental coffers depend on income.