On today’s show… Audi is giving the public a chance to experience self-driving cars on the Autobahn… the next-gen Mustang goes into production four years from now… and John has some insight into how the current NAFTA negotiations could impact the auto industry. All that and more coming right up on Autoline Daily.

This is Autoline Daily the show for enthusiasts of the automotive industry.

HIGH-SPEED ROBO RIDES
Even though autonomous vehicles have the potential to drastically reduce car crashes, the public is still wary of giving up control of the vehicle to a computer. So in order to get people more comfortable riding in one, Audi is giving the public a chance to experience the technology in an A7. The campaign starts today and runs through the end of August. And it’s not some short jaunt either. It’s a 45 kilometer or 28 mile route on the Autobahn in Germany, that takes around an hour. The car can travel up to 80 MPH and is capable of accelerating, braking and changing lanes all on its own. And we think this seems like a great way to get people on board with autonomous technology.

SUPERCAR MAKER GIVEN U.S. EXEMPTION
Sports car maker, Scuderia Cameron Glickenhaus, was recently granted Low Volume Manufacturer status by NHTSA, which means it can start building its supercars in the U.S. It hasn’t picked a manufacturing site yet but the company will initially produce and sell 3 models. The vehicles are exempt from some Federal safety and emission standards but the company says all street legal models will meet State laws required to register them. The company can legally produce up to 325 vehicles but only has plans to build a handful over the next couple of years. And because of that, the cars won’t come cheap. Each model is priced at $2 million. If all goes well, Scuderia Cameron Glickenhaus will look into developing more models and building a second production facility. The first car will be on display at The Quail Motorsports Gathering on August 18.

FORD HIRES GOLDEN NOSES IN CHINA
You’ve got to love that new car smell, right? Well, not in China. If a car doesn’t smell just right, Chinese car buyers believe it is hazardous to their health. They don’t want to smell paint, plastics or adhesives. In fact, the smell of a car is more important to them than road noise or fuel consumption. That’s why Ford has smell assessors in China they call “golden noses” to make sure the cars don’t smell unpleasant to the Chinese buyer. They test around 300 odors a year, and even keep their sense of smell sharp by avoiding things like spicy food, perfume, and even leather clothing. Hiring smell assessors isn’t unique to Ford, but it is more important in China than in any other market.

And we’ll be back with more right after this.

ALL-NEW MUSTANG SCHEDULED FOR 2021
In the automotive industry, most automakers generally design an all-new platform, give it a major refresh four years later, and then completely redesign it after 8 years. And that’s pretty much how Ford is managing the Mustang. The current generation Mustang went into production in 2014, and now Autoforecast Solutions is reporting the next generation Mustang will go into production in March of 2021 at Ford’s assembly plant in Flat Rock, Michigan. We expect to see a major refresh next year, but for all you suppliers in the audience who are on the lookout for future programs to bid on, here’s a 4-year heads-up on when Ford will completely re-do that car.

THAT’S NOT A BUICK!
Buick has been working to shake its image as an old man’s car and the new Regal GS will certainly help with those efforts. Under the hood is an all-new 310-horsepower V6, which is 50 more than the previous model. It gets mated to a 9-speed automatic transmission and a twin-clutch AWD drive system. This is the same twin-clutch Twinster rear drive unit that supplier GKN supplies to Ford for the Focus RS, whose all-wheel drive system receives praise from anyone who drives it. Other highlights include unique front and rear fascias, side skirts and spoiler, standard 19-inch wheels, performance brakes with Brembo front calipers, a tuned exhaust system and GS-specific sport seats. If you go into a Buick dealer and give them $40,000, they’ll hand you back a $10 bill and the keys to a new Regal GS. Buick also announced that the base Regal will start just under $26,000, about 2-grand less than a 2017 model. And that the new Regal Tour X wagon will start at 30-grand and hit dealerships in February of next year.

Coming up next, John takes a look at the upcoming talks about renegotiating NAFTA and what’s going to come of it.

HOW NAFTA COULD IMPACT THE AUTO INDUSTRY
Negotiations between the United States, Canada and Mexico over the North American Free Trade agreement are going to kick off in a couple of weeks. And the war of words is already heating up. The Motor And Equipment Manufacturers Association, or MEMA, the lobbying group for automotive suppliers, commissioned a study showing that any attempts to raise tariffs on Mexican-made cars or parts, would eliminate up to 50,000 American jobs and raise U.S. car prices by at least $1,000. I’m sure we’ll see others come up with studies that show the opposite.

MEMA doesn’t want any changes in the rules of origin, either. Right now, as long as 62.5% of cars or components are made in the NAFTA region, they can move between the US, Canada and Mexico without any tariffs. But the Trump Administration and even quite a few Democrats would like to see that rule of origin raised. Some want it to go to 80%. They’re concerned that too many Chinese components are going into cars made in Mexico, and then going across the border tax free.

But some suppliers, like the tire companies, object to 80%, because you can’t grow rubber in North America and they could never hit that local content threshold.

Here’s what I think will happen. The rules of origin will get raised, maybe to 70%, but we’re unlikely to see higher tariffs or a border adjustment tax, that will be used by the US as a bargaining chip for other issues. Like I said, the negotiations kickoff in a couple of weeks, and we’ll soon learn what each side puts on the table.

That’s how I see it and as always we welcome your feedback in the comments section.

And before we go, don’t forget to join me and Gary Vasilash this afternoon for Autoline After Hours and some of the best insider viewpoints on the automotive industry that you’ll find anywhere.

That wraps up today’s show, thanks for watching.