AD #2274 – Veemo’s Velomobile for Mobility, Tesla Stock Could Soar Even More, Honda Ridgeline Update
January 23rd, 2018 at 11:35am
Runtime: 6:40
0:31 Tesla Stock Could Soar Even More
1:26 FCA Bribed the UAW for Better Contracts
2:21 Veemo’s Velomobile for Mobility
3:09 Would You Buy the Same Car Again?
4:39 Honda Ridgeline Update
5:22 AEB Really Catching On
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On today’s show…Elon Musk gets a new compensation package that will send Tesla stock soaring…it’s official, FCA bribed the UAW to get better union contracts…and Honda should be proud of and worried about sales of the Ridgeline pickup. All that and more coming right up on Autoline Daily.
This is Autoline Daily the voice of the automotive industry.
TESLA STOCK COULD SOAR EVEN MORE
Tesla’s stock price continues to confound the critics. It’s up $30 a share just this month alone. And here’s something that will probably send it even higher. Tesla just changed Elon Musk’s compensation package and it’s an all or nothing deal. Either he drives the price of the stock a lot higher or he gets paid nothing, nada, zilch. He also has to grow revenues and gross profits. But if he does he’ll make tens of billions of dollars. And this sends a strong message to the investment community–Elon is all in when it comes to boosting Tesla stock. Mr. Musk says he’s not really driven by money. The New York Times quotes him as saying, “I want to contribute as much as possible to humanity becoming a multi-planet species. That obviously requires a certain amount of capital.”
FCA BRIBED THE UAW FOR BETTER CONTRACTS
Speaking of making money, Fiat-Chrysler’s top labor officials paid UAW officers more than $1.5 million to get better union contracts. Some of the bribes included airfare, jewelry and $50,000 cash payments. This is part of a larger $4.5 million scandal, in which GM and Ford are also being investigated. And we’re waiting for the FBI to say who else may be involved.
Which car company has the most loyal customers in the marketplace? The result may surprise you, and that’s coming up after this.
VEEMO’S VELOMOBILE FOR MOBILITY
As we move into a world of mobility services here’s a company that caught our eye at the AutomobiliD conference that was held in conjunction with the Detroit auto show. It’s a velomobile, or pedal car, made by a company called Veemo which is based in Vancouver. It’s a ride sharing vehicle, for one person, but with room for luggage and groceries. Even though you pedal it has electric assist that’s good for 60 miles, but it’s speed limited to 20 miles an hour. It even has disc brakes and power windows. It will fit on any bike path, and thanks to its enclosed body you can use it in almost any kind of weather. Veemo charges 20 cents a minute and most people use it for 15 minutes, meaning the average ride costs about $3.
WOULD YOU BUY THE SAME CAR AGAIN?
There are all kinds of automotive awards but one of the best ways to measure who makes the best cars is to measure how many customers come back and buy another one. IHS Markit does a survey on this in the US market and last year General Motors was the manufacturer with the highest loyalty, while Ford buyers were the most loyal to the brand. Jeep is conquesting more buyers than anyone else, while Toyota does the best with African American, Asian and Hispanic buyers. Lincoln owners go back to the same dealer more than anyone else, while Buick and Jaguar were the most improved. Owner loyalty is an important measure because the better you are at keeping your customers, the more money they spend on you.
| OVERALL LOYALTY AWRDS | WINNER |
|---|---|
| Overall Loyalty to Manufacturer | General Motors |
| Overall Loyalty to Make | Ford |
| Highest Conquest Percentage | Jeep |
| Ethnic Market Loyalty to Make | Toyota |
| Overall Loyalty to Dealer | Lincoln |
| Most Improved Loyalty to Make | Buick |
| Most Improved Conquest Percentage | Jaguar |
| Source: IHS Markit | |
Be sure to join us for Autoline After Hours this Thursday, where one of the top topics will be: is CES killing the Detroit auto show? We’ll give you the pros and cons of what people are saying. So join Gary Vasilash and me for an insider’s view of what the top people in this industry are talking about.
Coming up next, the Honda Ridgeline now has a full year of sales under its belt. So how’s it holding up?
HONDA RIDGELINE UPDATE
Last year was the first full year of sales for the redesigned Honda Ridgeline, so how’d it do? Sales came to nearly 35,000 pickups, which was up substantially from the year before when the truck was only on sale for part of the year. What should worry Honda is that in the last three months, sales of the Ridgeline fell 25%, while the other small pickups in the segment increased sales, except for the GMC Canyon which also saw a decline. But the Canyon didn’t fall off nearly as much as the Ridgeline did. That’s a fairly significant drop for a fairly new truck. And so we’ll have to keep an eye on this to see if Honda starts boosting incentives to sell more Ridgelines.
| HONDA RIDGELINE U.S. SALES | ||
|---|---|---|
| All 2017 | 34,749 | +47% |
| Oct-Dec | 8,173 | -25% |
| Source: WardsAuto | ||
AEB REALLY CATCHING ON
Automatic emergency braking is making major inroads in the American market. Wards Auto reports that 27% of passenger vehicles were equipped with the technology last year, up from only 6% two years ago. But Mercedes-Benz and Toyota get almost all the credit. They’re the only ones that made this feature standard equipment almost across the line. Automatic Emergency Braking, or AEB to use the industry acronym, will automatically slam on the brakes if it determines your car is about to crash into something or someone. Ward’s says AEB installation rates will skyrocket over the next few years because it will be mandated on all passenger vehicles by 2022. And we should see a statistically significant drop in accidents and fatalities as this technology rolls out.
And with that we come to the end of today’s report. Thanks for watching and we invite you to join us again here tomorrow.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
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Comments (26)
January 23rd, 2018 at 11:59 am
on your segment of AEB braking, the illustration on the screen in the driving model had a different order of letters.
Which is correct?
January 23rd, 2018 at 12:11 pm
Funny how people, with money (not just Musk) says it no longer about money (when referencing a higher goal) when sometimes it’s “your money” they’re really talking about.
AEB should help with some collisions; hopefully better than mandated ABS braking systems, which if I recall, didn’t show as much mitigation (of accidents) as was hoped. Still, I think ABS is a good/great innovation.
January 23rd, 2018 at 12:19 pm
Musk is a new generation bandit and crook. His autonomous car just crashed into a fire truck and they are trying to find someone to blame. Not Tesla. And why would anyone expect Elan to make a profit and deliver? He hasn’t in the past. “Stand and deliver” has been this road side bandits montra to the govt and investors for years. He even And they have delivered up. Now they say that a third of auto industry jobs will be lost to AI.
January 23rd, 2018 at 12:22 pm
I’m getting really annoyed with Elon’s grandstanding without substance, and now the Musk-ateer’s have another reason to cheer him on- they want to pay him more! His car company makes no money and shows no sign of making a profit in the next several years. His “mass produced” car still isn’t. SpaceX, while having good success in launching satellites, does not build a man rated rocket, something he’ll need before going to Mars in the next 2 years. Solar City’s solar roof tiles have almost stopped. He continues to scheme and plan to build Heavy trucks, sports cars, and pickups. He’s a visionary for sure, and accomplished a great deal, but enough with all the grandstanding.
January 23rd, 2018 at 12:26 pm
We had a 2013 Buick Verano 2.0T and loved it. Then a 2014 Buick Encore love it too and nicknamed it Squirt. We like the 2.0T and AWD so the Envision was an easy choice and hanjoyed it for the first year and 13,000 miles.
January 23rd, 2018 at 12:35 pm
The loyalty numbers make sense when you figure GM probably has the most variety of vehicles to choose from allowing for repeat buyers from entry level to luxury and many variations of SUV/CUVs. My guess Fords repeat “Make” buyers are F-150 Focus and Fusion which is limited for Ford loyalists. I know Lincoln was pushing for an exclusive buyer experience within their dealerships so that seems to be paying off.
January 23rd, 2018 at 12:45 pm
Elon Musk,THE 21st century uber con artist. He could have taught madoff how to swindle. And his autopilot is as reliable as his production predictions.
January 23rd, 2018 at 12:48 pm
If the FCA union contracts in question have to ratified by the members? What good does bribing the UAW officers do? Apparently the contracts were still agreeable to the (majority) of members?
January 23rd, 2018 at 12:54 pm
Lincoln dealers are probably doing a decent job, but another reason for “dealer loyalty” is convenience of dealer locations. Most people are probably within 25 miles of multiple Ford or Chevy dealers, but not Lincoln (and many others brands). if you are 10 miles from one Lincoln dealer, and the next closest one is 60 miles away, you might tend to be “loyal” to the close one. It’s worked that way with me, regarding MINI dealers, which are rather sparse, like Lincoln dealers.
At one time, it seemed like many Ford dealers also sold Lincoln, but not now. Yeah, that’s been a while.
January 23rd, 2018 at 1:16 pm
@Kit – for sure, I like some of the BMW stuff but since the nearest dealer is 500ish miles away …. it’s not an option for me. I do own a BMW motorcycle and it’s the same thing for dealers but I’m willing to put up with it for that. Also, there’s no Mercedes dealer anymore so if you were looking at getting a Cadillac, Infiniti, Lexus or Lincoln, Mercedes would probably come off your list.
January 23rd, 2018 at 1:20 pm
Elon wanting to make us a ” multi planet species” – I’m not sure why some think that’s so great, I tend to agree with what one scientist said- ” it’s like wanting to send cockroaches to an island that doesn’t have any, why?”
January 23rd, 2018 at 1:25 pm
There seems to be a lot of disdain for Elon Musk, some of which is to be expected when you can not produce as promised. His vision and concepts are inspiring. Why investors continue to support his vision in the face of what normally would raise concern, who knows! I believe he truly has good intentions and does want to make a difference as many visionaries before him. Funny that the original Nicola Tesla struggled with funding while Elon seems for the moment to afford the continued bleeding. I just wonder if the public perception of Elon was shared with the likes of Thomas Edison, Henry Ford, James Watt etc when they were trying to pursue their vision. Hope I’m wealthy enough one day to support the dream over the pursuit of making money at it. Often times the original idea leads to a completely different but major breakthrough. So I support Elon just not financially..
January 23rd, 2018 at 1:46 pm
#1. Grant, in the US “AEB” is the official term used by NHTSA, the IIHS and others. In Germany they tend to use the term “EBA.” The video clip we used in today’s show is from Continental which used “EBA” in its demo. It’s the same technology, the letters just get switched. And you get a gold star for noticing the difference!
January 23rd, 2018 at 1:46 pm
1 grant – I imagine the disparity is a language syntax meaning the animation likely originated overseas.
9 and 10 Lincoln does have the “sparsity disadvantage/advantage”, but their ranking would still apparently compare better than other brands that also have a fewer dealers, right?
Thanks again Autoline for keeping us up to date!
January 23rd, 2018 at 1:50 pm
8- Yes, the contracts are ratified by the voting members, but the UAW negotiators still have tremendous influence on what the contact looks like and how hard of deal is struck. There is obviously a certain amount of trust when the leadership say, “This is the best we were able to do and you should accept the deal”. When obviously it wasn’t as good of deal as it could have been. These people (on both sides) were morally corrupt and should spend the rest of their lives in prison for betraying the trust of those who they were supposed to be representing.
January 23rd, 2018 at 2:01 pm
14 Yep, there are many other “sparse dealer network” brands. It would be interesting to see the “whole list,” to see if any mass market brands, with many dealers, are near the top, but that information is apparently secret. There didn’t seem to be any links on the site for more information.
January 23rd, 2018 at 2:03 pm
#11, buzzerd, that’s funny.
January 23rd, 2018 at 2:08 pm
I am impressed with some things Elon Musk’s companies have done, especially recovering the SpaceX rocket boosters, but, to me, the crazy Tesla stock price is, well, crazy. People are buying it, and hope to correctly time their selling when it starts to crash. If Mercedes, Toyota, GM, or Ford want to make good, expensive electric cars, they can do so. The Tesla cult status can’t last forever, can it?
January 23rd, 2018 at 2:19 pm
The Ridgeline production line could probably be split into two for production of a new five passenger shorter wheelbase Honda Pilot-Sport. These two vehicles could share major components and drivetrains. The front-end styling of the Ridgeline would be very handsome on the Honda Pilot Sport. The Pilot Sport could with the underpinnings of the Ridgeline a competitor to the Jeep Grand Cherokee IMHO.
January 23rd, 2018 at 2:20 pm
Elon Musk is the Howard Hughes of the 21st Century.
January 23rd, 2018 at 2:38 pm
Is Elon’s new multi-billion $ contract in addition or a substitute for his previous multi-billion $ contract? Do you have the details of his old contract? I thought there was only one condition remaining before he collects. Something about production exceeding 300,000 units per year.
January 23rd, 2018 at 4:06 pm
The under reported number for EV production is the lack of new power plant construction, the number of electrical power grid emergencies declare in California in the last 3 years and my favorite….number of new charging stations installed by major matro areas.
January 23rd, 2018 at 9:06 pm
Re: Veemo
I know Vancouver Canada well. Veemo should be a success. Good public transport, so car not really needed within city. Usually one car per household not two. Lots of ‘Greenies’, lots bike paths, lots of rain, not much snow.
January 24th, 2018 at 4:23 am
As an inventor, Edison made 1,000 unsuccessful attempts at inventing the light bulb. When a reporter asked, “How did it feel to fail 1,000 times?” Edison replied, “I didn’t fail 1,000 times. The light bulb was an invention with 1,000 steps.”
The Tesla Model S, X, and 3 are for sale and deliveries continue daily. Yet there have been accidents, recalls, and changes based on lessons learned … just like every other car.
The Falcon 9 has become a reliable launcher thanks to lessons learned when they failed. No one else is reusing their first stage rockets. Rockets explode and the first, experimental Falcon Heavy _test_ flight is coming up. It may fail but at least it was attempted and the lessons learned for the next one.
Full disclosure, I own no Tesla stock and until (if ever) they make a plug-in hybrid, no interest. But I admire his efforts and successes. He gets off his backside and makes stuff happen.
January 24th, 2018 at 8:48 am
#15 Bob I totally agree they should go to prison as the corruption seems to be, and maybe always has been standard procedure. I just find it hard to believe that spending over a million dollars bribing union executives would be worth it when the contracts still need ratification. I guess now I dont feel so bad when the union votes down an offer and gets to verge of striking. Obviously those offers were not the best offer that could be given.
January 24th, 2018 at 12:47 pm
I’ve said it before and I’ll say it again, as much as I enjoy the Ridgeline’s current styling, the new Accord, as good as it looks, the front end has more of a ruggedly handsome, pickup truck look then that of the current Ridgeline, IMHO. Whether or not it’s looks has impacted, encourage or discourage sales, I have no clue. For all intents and purposes, though, it’s a great truck and if it was more in my price range, it might be something I would seriously consider as a replacement vehicle. If an automaker can figure out how to make a compact, unibody truck, I think they may have a hit on their hands. Yes I am looking at you Hyundai, with your concept Santa Cruz! Here’s hoping that you come through on that one.