On today’s show….General Motors is pushing hard to boost sales of diesels…..Bernie Ecclestone could be out of Formula One this week….and a glut of leased cars could cripple residuals. All that and more coming right up on Autoline Daily.
This is Autoline Daily the show for those interested in all aspects of the automotive industry.
THE DARK SIDE OF LEASING
Automakers in the American market face a glut of used vehicles coming off lease. J.D. Power reports that 3.3 million vehicles will come off lease this year, which could hurt car companies, lenders and leasing companies. Here’s the problem. Leasing used to be for luxury cars. Today it’s used all across the market. And so many cars are coming off lease at the same time that they’re bringing down prices for used cars. Those lower residuals could result in much lower profits for the finance arms of the car companies and other lenders. The average used car depreciated 23% last year, compared to the historical rate of 18%.
TRUST, BUT VERIFY
Ford recently announced it would have 13 new electrified vehicles on roads around the world within the next five years and of those 13 we learned one would be a hybrid Transit van. But before they go into customer hands, Ford and the City of London will test a fleet out on public roads. During a 12-month trial, 20 plug-in hybrid Transit vans will be provided to a range of commercial fleets across the city to make deliveries and perform maintenance work. The commercial introduction of these hybrid vans is planned for sometime in 2019.
MUSTANG PUTS THE TOP DOWN
And in other Ford news, after showing off the new design for the Mustang in hard-top form we’re now getting our first peek at the soft-top. Many people in our comments section blasted the new design saying it has a bit of a droopy face look, but we think the fresh lines look better on the convertible. What say you?
This might be Bernie Ecclestone’s last week in Formula One. That’s coming up next.
BYE-BYE BERNIE
Many Formula One fans around the world will be thrilled to hear that Bernie Ecclestone could step down this week as chief executive of the racing series. Ecclestone has been a controversial figure who built F1 into a sporting powerhouse, but ruled with an iron fist. Formula One was bought by an American company called Liberty Media and plans to make major changes to the racing series. The BBC reports Ecclestone could be out this week or within the month.
ANOTHER ONE BITES THE DUST
What’s going on at BMW design? Within the last two years the company lost the design chiefs at both the MINI and BMW i brands, and now Automotive News reports that the head of design for the BMW brand, Karim Habib, is quitting. He started with BMW back in 1998, then went to Mercedes in 2008 and ended up back at BMW in 2011, where he was promoted to his current position. All of them reported to Adrian van Hooydonk, the Senior Vice President of BMW Group Design.
DELPHI’S OWENS RETIRES
We all know the names of famous sports stars and celebrities. Well, in the automotive industry the celebrities are the executives, and one of them is retiring. Delphi’s Chief Technology Officer, Jeff Owens, will step down this month after more than 40 years at the supplier company. He will be replaced by Glen De Vos, who has been at Delphi since 1992 and was recently VP of Software & Services for Delphi Electronics & Safety.
GM BULLISH ON DIESELS
Just a few years ago, Chevy offered a diesel Chevy Cruze. But last year it dropped it because of poor sales. But that doesn’t mean it’s giving up on diesels. The 2017 Cruze and the 2018 Equinox will both offer diesels. And to make sure they don’t suffer the same fate, Wards Auto reports Chevy is planning to market them differently. It says it didn’t properly target and engage diesel owners and enthusiasts. It wants to focus on the fun-to-drive aspects, and the fuel economy. Chevy wants to engage diesel enthusiasts the same way it’s going after EV and plug-in enthusiasts.
When are we going to see Chinese brand cars sold in the U.S. market? That’s coming up next.
ARE CHINESE CARS ON THE HORIZON?
Even though it doesn’t sell any cars in the American market, Chinese automaker GAC Motors took the time to come to the Detroit auto show and debut several new products. Does this mean we’ll see Chinese brand cars on U.S. roads sometime soon? On last week’s Autoline After Hours, John and the gang got into it.
(The AAH preview is only available in the video version of today’s show.)
They guys also talk with David Madeira, the head of the LeMay Museum in Tacoma, Washington about its annual classic car drive to the Detroit auto show. To watch that show, just head on over to our website, Autoline.tv or you can find it on our YouTube channel.
But that’s it for today, thanks for watching and please join us again tomorrow.
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Comments (22)
January 23rd, 2017 at 12:04 pm
Unrelated to today’s broadcast, but interesting nonetheless: Automotive News carried a story today about the top 5 OEM’s by percentage of total US sales made up of fleet in 2016. I was surprised at the list, perhaps you will be too. Here they are:
1. Ford-Lincoln 29%
2. FCA 24%
3. Hyundai-Kia 21%
4. General Motors 20%
5. Nissan 19%
January 23rd, 2017 at 12:05 pm
If Chinese cars are to be sold in the US, then they should be built in the US with an American partner, just like how US cars are sold in China.
January 23rd, 2017 at 12:13 pm
As a decades long fan of F1, I am going to miss Bernie. From his days of owning Brabham to being F1s King, he has opened up so many markets that are highly profitable for the team owners, and yes, mostly himself. And he doesn’t run F1; he is more of a race organizer/promoter. He doesn’t set the rules the teams live by. He has been critical of the engines note, and the rules the sport has imposed regarding ongoing development of the cars and engines. He does charges outrageous fees to hold a F1 race, however, being a businessman, he squeezes all he can from the race venues.
January 23rd, 2017 at 12:17 pm
I think the American market is about to get a lot less desirable for Chinese carmakers. The comments from President Trump this morning indicate that the Chinese companies will face the same hurdles entering our market that our automakers faced going into theirs. This will help to level the playing field and they won’t be able to sell their vehicles based on significantly lower sticker prices.
January 23rd, 2017 at 1:31 pm
Hopefully, President Trump can put an end to all the counterfeit auto parts from China making it across our borders. I do think the trade fight with China will cause a lot of grief for the automakers who have already partnered in China. We have already transferred the technology to build the cars to them, so they don’t need as badly us anymore.
#2 I agree with Chinese building in the U.S. with a partner. Just make sure it’s a partner that just attaches their name to the venture, and not bring a lot of capital, similar to their business practice.
January 23rd, 2017 at 1:33 pm
I agree with Barry Rector. The Chinese will take a long-term view and probably would be willing to wait until Trump is out of office. There is still money to be made in Canada and Mexico as they gain experience.
With Bernie gone it will be interesting to see F1 try to gain fans in the U.S. Look out NASCAR.
January 23rd, 2017 at 1:36 pm
Trump’s tariffs, if they are implemented, will be a shift of the tax burden from the very rich to middle income people. The end result will be that car prices will increase, and fewer cars and more “basic” vehicles will be sold.
Yeah, it might bring a few jobs back to the U.S., but if the end result is a major recession, those people will be laid off.
January 23rd, 2017 at 1:39 pm
I never liked Bernie E. much, but he certainly did a lot for, or to F1, depending upon your perspective.
With or without him, I’ll continue to follow F1, more than any other racing series.
January 23rd, 2017 at 1:41 pm
I was disappointed in the Mustang refresh initially. However, after seeing it in person at NAIAS I think it looks pretty good. They did lower the top of the grill opening, but widened the grill overall. It does look better in convertible as you said.
January 23rd, 2017 at 2:02 pm
I believe the desire for diesel powered vehicles is falling rapidly here in the US in light of the VW Group emission cheating scandal. GM should expand it’s Volt Power plant to other vehicles like the Chevy Equinox and GMC Terrain. This technology will see improves adoption when incorporated into types and sized vehicles.
January 23rd, 2017 at 2:10 pm
As an avid automotive DYIer, I hate to have to by Chinese replacement parts for my cars. Brake rotors, rubber hoses, all electrical parts, and more from American suppliers drives me nuts. My last Bendix brake rotors came with bamboo shipping protection materials inside the box!
The 2018 Mustang refresh took me a day to go from repulsive to I like it. I especially like the fact that they got rid of the European pedestrian dolphin head hood treatment. And the new dual injection get rid of the dreaded intake valve carbon build up issue. More power sounds good to everyone.
January 23rd, 2017 at 2:24 pm
It seems that some GDI engines have intake valve carbon buildup problems, and others do not. I’ve heard that BMW does, or did have a lot of problems, but I have not heard of such problems with the GM 3.6 GDI, that has been around for years. Does anyone know what the difference might be?
January 23rd, 2017 at 3:42 pm
This column is getting political, I wish it would just talk about auto news, we have the administration we have for 4 yrs, IIn 4 yrs we can all go vote again if we want to Change or keep it.
January 23rd, 2017 at 3:47 pm
I had the 3.0 v6 in my equinox,(2012).It was a derivative of the 3.6,and it had gdi,and I had problems with it too.When I started driving 200+ miles round trip to my ‘local’ VA,up and down mountain passes,and a tank of hightest,it cleared it right up.
I do the same thing with my wifes 14 soul,and it clears it right up.The ‘port and direct’ injection systems coming out will be of course more complex,but a lot better for the engine.Note: ALWAYS use a tier one fuel supplier.It’s worth the extra pennies.
January 23rd, 2017 at 3:51 pm
@ Kit: I think things will get a bit tough on all of us at first with the new ‘keep America first’,but i believe in the long run,( less than 4 years) we will see much better times.
One thing for certain,we will end up in much better shape then we have been for the last two presidents.No,I was,and still not a bush fan.I best describe the last two as ‘Dumb and Dumber’.Nuff said.
January 23rd, 2017 at 4:10 pm
To the guys with GDI engine problems: are you using Top Tier detergent gasoline? That’s the type of fuel blessed by 8 OEMs. I’d like to know if this gasoline makes a difference in GDI engines.
Here’s a link to the gasoline brands with the Top Tier rating: http://www.toptiergas.com/licensedbrands/
January 23rd, 2017 at 4:13 pm
14 It sounds like maybe the GM 3.6 has had problems, that I hadn’t heard about. From your experience with your 3.0, it sounds like “working” the engine in mountains helps things.
The only GDI engine I’ve had is in the Corvette. So far, so good, but I only have about 10K miles on it. I have been using regular gas, but I make it a point to use “Top Tier.”
January 23rd, 2017 at 4:16 pm
15 On Trumpism, we shall see, but, historically, trade wars and isolationism have not been a good thing. I’m hoping for the best.
January 23rd, 2017 at 4:20 pm
@ John Mc: Yes to the top tier.I have 3 gas stations close by,Shell,Chevron,and Valero,all three are top tier,and that’s all we use.Does it make a difference,yes it does,with one caveat,the difference is noticeable shortly after getting on a hwy,as opposed to just city driving.
I’d say about 20 miles or so,I felt the engine start to run smoother.What also helps,for me at least,was climbing the mountain passes where the engine came up to the higher power band/rpms,and ‘worked’ the engine.
John,remember the old days when taking granmas car out for an errand,and ‘blowing the coke’ out of it? That’s kind what it is like,but cleaner.
January 23rd, 2017 at 4:22 pm
@ Kit: Yep.I agree.But,that was back when we really only had europe and japan to really trade with.Now there is a much larger number of modern/semi modern industrialized nations. I think that puts us in a better position.
January 23rd, 2017 at 4:25 pm
The OEM’s involved with Top Tier are BMW, GM, FCA, Honda, Toyota, Volkswagen, Mercedes-Benz and Audi.
Most of the major companies selling in the U.S. are among them, but not Ford or Nissan. I’m a little surprised about that.
January 24th, 2017 at 11:43 am
I’ve had three 3.6 GDI engines: ’06, ’11 and currently a ’17; use toptier most of the time; no problems with these three iterations of GM’s 3.6L. I have read of some problems on some of the forums but I’ve been very well pleased with my purchases.