AD #2032 – FCA Has Diesel Fix, Ford’s Profits Plummet, Elio Motors Delays Again

January 26th, 2017 at 12:02pm

Runtime: 8:39

To watch this episode on YouTube click here.

- FCA Has Diesel Fix
- FCA Boosts Bottom Line
- Ford’s Profits Plummet
- Top Selling Mid-Size CUVs
- Elio Motors Delays Again
- No Subprime Bubble
- Can the Kia Stinger Compete with German Luxury Brands?

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34 Comments to “AD #2032 – FCA Has Diesel Fix, Ford’s Profits Plummet, Elio Motors Delays Again”

  1. Barry T Says:

    KIA may be reaching high, but they have been making amazing progress in styling AND quality. The Stinger looks like a great next step.

    Oh, and then there’s the aggressive pricing/high content value they pursue throughout their lineup…

  2. Hunter Says:

    The CR-V, Rav-4, etc are considered Mid Size SUVs? I always thought those were compact SUVs since they’re based on vehicles like the Civic. The Explorer was always mid size in my book.

  3. David Sprowl Says:

    60,000 pre orders at 7K a shot would provide a decent income. Enough to cover a portion of the 120K owed. So Elio, build the thing, or refund the money.

  4. Chuck Grenci Says:

    One adjective that I did not hear when describing the Kia was “brilliant”; if you want to compete with the big boys, you need more than looks.

  5. Kit Gerhart Says:

    3 They have apparently spent the $24.8M they collected in deposits.

  6. Kit Gerhart Says:

    If Hyundai wants to compete with the Germans, wouldn’t it make more sense to sell the Stinger as a Genesis, and continue to broaden that brand? Given the gains H/K has made over the years, I’d think they could offer more models, and make Genesis into a brand that could easily compete with Acura and Infiniti, and maybe even Lexus.

  7. XA351GT Says:

    I’m really bummed about Elio. They have delayed now since 2013 or 14 . It is a great little car with tons of potential ,but recently things they have said run counter to everything they had done up this point. The car was to have a full frame/rollcage with a composite body. 5 or so years into the project they turned about face and are now going with a steel unibody design. Really? you didn’t know these factors before you designed the car and built 4 or 5 prototypes and 2 E series vehicles to discover that it would be too expensive to do the original design. The whole deal has really got me wondering if they know what the hell they are doing. Maybe if the project goes under someone else will pick it up and really get it going . There is a desire and need for a inexpensive commuter car . 64000 people putting down money on something that doesn’t exist is proof of that.

  8. XA351GT Says:

    The pre orders were only 1000 or 500 dollars not the full amount. But they raked it in with stock offerings. to the tune of millions

  9. Kit Gerhart Says:

    The advertised price of the Elio has always sounded unrealistically low, given that the cheapest Can Am Spyder costs twice as much, with no roof, doors, A/C, etc. The Elio is an interesting concept, but, unfortunately, it is unlikely to ever see production.

  10. ToddT Says:

    #2 Everything has increased in size. The Civic of today is far larger than the Accord of 90′s. Hence the need for the Fit. The CR-V continues to grow, necessitating the HR-V. Likewise, the Explorer of today is larger than the one that first came out, so we have the Escape, which is also growing…and so, now we have the EcoSport. Vehicle segmentation is a black art, fluid and ever-changing, unfortunately, successful nameplates that define certain segments and should be moved to other segments as they grow, end up in the “wrong” segment out of habit or tradition.

  11. Brett Says:

    Elio Motors is the Moller International of the 21st century.

  12. Barry Rector Says:

    John,

    I see the Kia Stinger as being a rival to the Japanese brands more than the European brands.

  13. G.A.Branigan Says:

    The more I see of the chevy ZR2,the more I love it.

  14. Eric Says:

    Elio is more like Dale

  15. Jon M Says:

    Kias may not be the scrappy, crappy little-engines-that-thought-they-could that they once were, but I think it’s a stretch to believe that Kia can “shake up” the German GT crowd. It’s not just that some buyers are too loyal to the German brands, but that Kia just doesn’t have enough change in its pocket to play in that game. A pretty face may gain some attention, but as soon as you say, “It’s a Ka-Ka-Ka-Kia, the pottery…er…the car company that grows!” you’ve lost them. They may have transformed the company from its Yugoesque beginnings, but they have a long way to go to get that kind of panache. But I’ll cut Mr. Sprague some slack; I really don’t expect the COO (or any company rep.) to say, “Gee, John, you’re right, we can’t compete.”

  16. RSharp Says:

    It may take some time, but I believe Kia will earn its way into the big(ger) league, even the prestige league, with products like the Stinger.
    Consider that the Soul almost single-handedly killed the entire Scion brand. Kia took what Toyota was trying to do with a whole new brand and doubled or tripled Scion’s annual volume with a single car.
    And moving from last place in initial quality to first may have taken 15 years, but who else has made that kind of progress?
    Any brand that takes Kia lightly is doing so at their own peril.

  17. Brett Says:

    #16

    The Korean refer to the Japanese as “the lazy Asians”. If that doesn’t speak volumes about their competitiveness, I don’t know what does.

  18. ARHPG Says:

    The Kia Stinger appears to be a well-engineered, accomplished sports sedan (thanks, somewhat, to a former BMW “M” engineer). The problem is the name “KIA” and the past association with meager quality and low-suds performance. A Mercedes-Benz, BMW or Audi customer — with that in mind — would not likely pursue a Kia, despite its newfound excellence, simply because of that association.

    Perhaps the Kia name itself should be dropped and let it simply be “Stinger,” not unlike the adaptation of “Ram” by FCA for the Dodge truck line.

  19. Kit Gerhart Says:

    16 I see a lot of Souls here, in the Space Coast area of Florida. I’m not surprised that it sells well. It is a practical, basic vehicle, and is a good value, especially if not “loaded up.” It even has some individual options. You can even get “home link” and auto dimming mirror as a separate option on the base car, while it takes an expensive trim upgrade on many cars to get home link.

    Yep, KIA has come a long way, since they were building Ford Aspire.

  20. Ctech Says:

    Hyundai and Kia probably can produce a car that can equal the Germans, but can it exceed them? The other major thing H/K has chosen NOT to do is build a separate showroom and identity in the piblic eye. I look at what Cadillac has done competing with the Germans and still their sales are well below the leading German brands. For any of us who have been to H/K dealers they are not close to the treatment and amenities you get from M-B/BMW/Audi/Cadillac/Lexus/Lincoln/Acura dealers.

  21. Kit Gerhart Says:

    Does Genesis have separate dealers, or do they plan to?

  22. Kit Gerhart Says:

    Trump’s trade war has begun.

    http://mobile.nytimes.com/2017/01/26/us/politics/mexico-wall-tax-trump.amp.html

  23. Steve W Says:

    Elio has been a joke from the beginning! I still don’t understand why anybody gives them any news coverage. Bernie Madoff is waiting patiently for his next roommate.

  24. G.A.Branigan Says:

    @ Kit: I love it,but you knew that ;}>
    He has to start somewhere to bring about the change we desperately need.

  25. Ctech Says:

    @#21 Kit I have only seen Genesis models sold from Hyundai dealers. 2 dealers I saw put the Genesis models in a separate part of the showroom, but sales and service is all intermingled. VW dealers had trouble moving the Phaeton and Hyundai dealers have trouble moving the Equus/G90.

  26. Kit Gerhart Says:

    #24 If they are serious about moving “upscale,” they need separate showrooms, service, etc. That has worked for Lexus. Many of their products are mostly badge engineered, but the dealer experience is good. I recently went to a Lexus dealer in my Prius, told the salesman up front that I was “just looking,” and he understood that.

  27. phred Says:

    The H/K should decide who among them will be the luxury leader and follow thru. The confusion over the nsme plates reflects that the potential buyer is not clear as to what they are buying into. Remember Buick/Pontiac/Oldsmobile/Chevy competition for luxury to justify a higher price tag.

  28. Kit Gerhart Says:

    26 If H/K wants to compete in the “luxury” car business in the U.S., they need to concentrate on Genesis, as Toyota did with Lexus. Either that, or they need to drop Genesis, and sell a full line of cars with one brand, as M-B does everywhere except North America, where they ignore the low end.

  29. Bob Wilson Says:

    Here is hoping Musk did not take note of Elio motors.

  30. RS Says:

    Do I have this right??? Trump wants to tack on a 20% tariff on products coming into the country from Mexico. Guess who is ultimately going to pay for those products? Oh, wait it’s US!! Is anyone naive enough to believe that the cost of those products will not be passed on to the buyer???

    We are actually going to get hit twice – once out of tax revenues and then again when we buy stuff made from parts imported from Mexico. Can you tell me again how this is such a great idea?

  31. Kit Gerhart Says:

    29 It’s regressive taxation, a basic mantra of a certain political party in the U.S.

  32. FSTFWRD Says:

    @ 26 RS Me too. +++

  33. FSTFWRD Says:

    Make that #29 Sorry

  34. Earl Says:

    #16….You’re right the Kia Soul ate the Scion brands lunch. It was a game changer and the women (35 to 55 age) have gone for it big time. The original Soul caught the market by surprise and their styling has been evolutionary. Looking back to 2009 when they first sold 31,612 of them and now last year 145,768.
    As for the Stinger, much like the K9000 are not game changers and they have to think 10 to 15,years to earn a place in their segment. And hope that some of their competitors screw up like Lexus is doing with their god awful front ends.