AD #2234 – Ford Has Too Many Passenger Cars, Citroen Refreshes Cactus, Hyundai To Launch 8 CUVs
November 15th, 2017 at 11:47am
Runtime: 7:17
0:32 Citroen Refreshes Cactus
1:14 Hyundai To Launch 8 CUVs
2:51 BMW Uses VR Goggles in Dealerships
3:37 Continental’s Speakerless Sound System
5:26 Ford Has Too Many Passenger Cars
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On today’s show…BMW wants to transform the car buying experience using VR goggles…Continental figures out how to make a sound system without any speakers in a car… and we try to figure out where Ford will take an axe to its operations. All that and more coming right up on Autoline Daily.
This is Autoline Daily the show dedicated to those who truly want to learn about the automotive industry.
CITROEN REFRESHES CACTUS
When the Citroen Cactus came out it attracted quite a few fans in the automotive design community, and with much of the automotive media. Too bad car buyers were not as enamored. Citroen has the capacity to make 150,000 Cactus’s a year, but sales are running around 50,000 a year. To try and breathe some life into it, Citroen just refreshed the design. But it also gets rid of one of the iconic design aspects of the Cactus, those door panel inserts. We’ll see if this redesign helps sales at all. You may remember that a few months ago we reported the Cactus will be dropped once it reaches the end of its product cycle.
HYUNDAI TO LAUNCH 8 CUVS
But as Citroen gets ready to drop one model, Hyundai is about to launch 8 news ones. Hyundai’s Achilles Heel right now is that it has too many passenger cars and too few crossovers. Hyundai recently unveiled the Kona CUV and will bring out 7 other CUVs by 2020. And it will run the gamut from a little A-class model to a mid-size three-row vehicle. There will be an electric model, a fuel cell one, and one powered by a diesel. There’s also a couple of models that the company has said nothing about.
But we will get more info on them tomorrow because our special guest on Autoline After Hours is Mike O’Brien, the head of product planning for Hyundai Motor America. We’ll want to learn how the company put on a crash program to come out with so many crossovers in such a short amount of time. So join Gary Vasilash and me for some of the best insights into how the automotive industry actually works. That’s tomorrow, live at 3 pm Eastern time at www.Autoline.tv
How can the audio system in a car work without any speakers? We’ll show you how, right after this.
BMW USES VR GOGGLES IN DEALERSHIPS
A few years back, Volvo teamed up with Microsoft to demonstrate how its HoloLens augmented reality goggles could be used to enhance the dealership experience. A couple months ago, we showed you how Ford is experimenting with the goggles in its design process. And now BMW is the latest automaker to use the technology to showcase its new X2 crossover. At select dealers worldwide, potential customers can interact with the X2 in a mixed reality environment. For example, you can drive the BMW X2 out of a maze or can give it a new color in the paint tank. Since the company expects the X2 to attract a younger buyer, BMW says the HoloLens is a way to connect with those customers.
CONTI’S SPEAKERLESS SOUND SYSTEM
Surprisingly one of the more difficult things to integrate into a car is the audio system. The speakers have heavy magnets and take up a lot of room. So the supplier company Continental developed a speaker-less sound system. Sound is created by actuators that vibrate on certain surfaces in the car, like the headliner, the instrument panel, the A-pillar trim and door panels. A conventional speaker system can weigh over 30 pounds but Conti’s system weighs just 2 pounds. Honda uses a similar concept for the speaker system in the bed of the Ridgeline. I remember hearing a prototype system like this that Johnson Controls was working on a couple of decades ago. It worked well, except that there wasn’t a very good bass sound. So I very much want to hear what this system sounds like. If you’d like to learn more about how hard it is to design an audio systems into a car, check out the Autoline This Week #2116 we did on what it takes to come up with a killer sound system.
Coming up next, Ford wants to cut $14 billion in cost and we’ve got some ideas on where the axe will fall.
FORD HAS TOO MANY PASS CARS
Ford’s COO Joe Hinrichs told analysts yesterday that the company will cut costs by $14 billion over the next 5 years. He said this would not involve plant closings or massive layoffs. Instead, it will involve reducing the cost of materials by $10 billion and engineering cost by $4 billion. Here’s our Autoline Insight: the fastest way the company can cut cost is by getting rid of models. It’s no secret that sales of passenger cars are declining around the world, and Ford has a lot of pass car and CUV models that overlap each other. At the small end of the range there’s the Figo, Ka+, Fiesta, B-Max and Eco Sport. One step up from that is the Focus, C-Max, and Kuga/Escape. A step up from there are the Mondeo/Fusion, the S-Max and Galaxy. And then there’s the Taurus which is not selling well in the U.S. or China. That’s 12 models. Ford probably needs three sizes, small, medium and large, both pass car and crossover. That could be covered with 6 models, with a couple of CUV ‘tweeners thrown in for good measure. We can argue over which ones should go or how many they should get rid of, but cutting the number of models would be the fastest way for Ford to cut costs. Notice I didn’t say anything about the Mustang. The Mustang you don’t touch.
And with that we come to the end of today’s report. Thanks for watching.
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Comments (20)
November 15th, 2017 at 12:21 pm
Ford will need 8 models a Extra small, Small, Medium and large. They have a market for Extra small vehicles in Europe and China that will not sell in the US. But I agree that 6 models would be sufficient for the US.
November 15th, 2017 at 12:28 pm
I thought when Ford went to it’s One World One Ford philosophy that was supposed to happen. In NA Ford has The Taurus(Large) Fusion (mid size) Focus (compact ) and Fiesta (Sub Compact) , and the Mustang ( sporty car) . What really could they stop building and selling here? At least without abandoning a segment altogether ? Personally I’d like to see less of the SUV /CUV land barges that everyone seems to love.
November 15th, 2017 at 12:38 pm
I totally agree with you John! These OEM’s are supporting too many models and variations by region. This does not even discuss the variations caused by Left or Right hand drives vehicles and worldwide differing safety standards. This would probably be an excellent topic to diagram and discuss on AAH.
November 15th, 2017 at 12:44 pm
I understand buyers moving toward CUV/SUVs, higher ride height, more utilitarian, generally more habitable space. What I don’t understand is the fascination with very small utility vehicles, which seem to fly in the face of what buyers seem to be seeking. The sub-compact models have less room than most compact sedans and have all the utility of a dogsled. I’m awaiting the next generation — perhaps titled micro-compact — utilities which will seat 2 people in front and one grocery bag in the back. Should sport all the comfort and convenience of a skateboard. . . .
November 15th, 2017 at 12:48 pm
I have been looking at the 2018 Hyundai Santa Fe Sport 2.4L AWD with Tech Package for a family member. My issue with Hyundai is that their MSRP is way to high for even the base model of this vehicle considering it has very few amenities to offer. The Base 2018 Hyundai Santa Fe Sport 2.4L AWD has an MSRP of $30K. Yes there are rebates and zero financing but this is just putting lipstick on a pig IMHO.
A fully load 2018 Hyundai Santa Fe Sport 2.4L AWD with Tech Package stickers for $36K. If you want the 2.0L Turbo add $4K. These prices are why Hyundai has had double digit sales losses the last few months. Hyundai should do like GM and take 20% for the MSRP and continue the Zero Percent Financing on all models if they want to move the metal IHMO.
November 15th, 2017 at 1:21 pm
Had looked at the Sonoma and Santa Fe when buying, however I am 6ft 4. Did not fit. Toyota still builds larger vehicles. They should look at making at least one model that fits taller / larger people. Even BMW configures their smaller vehicles with seating and such that fits very y’all people. Just better ergonomic engineering. About models time to cut the slowest sellers. That is simple. Ed
November 15th, 2017 at 1:33 pm
If Ford wants to drop some cars, they should start with the Taurus. It is not competitive with Impala, Avalon, etc., and hasn’t been for years.
They sell few Fiestas in North America, but that car is a big seller in much of the world. If the Fiesta continues, they need to add some space to the interior, like a Honda Fit. The Fiesta drives well, at least the ST version, but is not as roomy as most of the competition.
November 15th, 2017 at 1:48 pm
#4 I know a couple drivers of “very small” CUV’s, an HR-V and an Encore. Both bought them mainly because they find them easier to get in and out of than a car. Also, the smallish footprint makes them easy to park.
Neither of these people use the back seat often, and transport only groceries, and other stuff that will easily fit inside.
November 15th, 2017 at 2:47 pm
I think we discussed this topic before, the speakerless sound system; didn’t we agree (or some of us) that by setting a lot of the interior in purposeful motion, premature loosening of panels, etc. would soon begin to create rattles and squeaks.
November 15th, 2017 at 3:45 pm
AAH question for tommorows show..
The battery only Hyundai cuv…is expected when?
Will have approximately how much range?
Accelerate to sixty approximately how fast?
Who else uses the same or similiar battery pack?
What gasoline powered cuv s will it compete with ?
Not sure if any questions can be answered but thought I’d ask anyway…
Hyundais on a strong roll.
November 15th, 2017 at 3:53 pm
Wrt Ford and Mustang: as you say, don’t cut it, but perhaps put a 700 – 1000 hp engine into it?
Might as well join the HP insanity other brands are offering!
November 15th, 2017 at 4:07 pm
I thought the Mondeo died when Ford pulled out of Australia.
November 15th, 2017 at 5:33 pm
#12 The Falcon died when Ford shut down in Australia. The Mondeo is alive and well in Europe and elsewhere. Mondeo is similar to U.S. Fusion, except Mondeo is sold in more practical body styles, like liftback, and wagon/estate.
November 15th, 2017 at 5:40 pm
On Hyundai’s 8 new models… since when are different engine configuration counted as different models?
November 15th, 2017 at 5:57 pm
If Hyundai really wants to make a splash they should come out with a honest-to-goodness small rear/4WD pickup truck the size of the old Toyotas and Datsuns, they would clean up since nobody is making small pickups anymore, GM had the last chance to do it but came out with the hunchback Colorado/Canyon twins and just added to the mid-size segment of Nissan, Toyota, Honda(barely), etc. Ford will be right in the middle of that mid-size segment also when the new-to-us Ranger gets here.
November 15th, 2017 at 6:15 pm
Ziggy, I think actual small pickups would be an excellent entry point for Chinese companies, but if Hyundai did it, they would sell, if priced properly. Whoever eventually re-introduces a small pickup in the U.S. should sell a standard cab. Anything else just doesn’t look like a pickup truck.
November 15th, 2017 at 6:16 pm
If Ford drops the Taurus, what will the police drive? As far as the Focus and Escape goes, are they really 2 separate models? I always assumed the Escape was just a jacked up Focus. If it isn’t, maybe it should be. Maybe the solution would be to offer a ‘butch’ Escape and then the same car with a Focus hatch body as a ‘car’. Save on engineering and get more room in the Focus to boot.
November 15th, 2017 at 6:24 pm
Where I am, most state police cars seem to be Chargers, and local police use a mix, with various cars and CUV’s being used.
I’m sure there is “sharing” between Focus and Escape, but maybe not as much as there could be.
November 16th, 2017 at 11:02 am
Deja view. You did the Continental speaker-less sound system story a few weeks ago.
November 16th, 2017 at 8:48 pm
Most of the Ford police cruisers I see in Florida are the Explorer police units. The officers seem to like it better than the Taurus units and it is less complicated. My question is what happens to the MKT and Flex?