AD #2429 – Tesla Props Up EV Segment, Acura ILX Gets a New Look, 2019 Hyundai Santa Fe Impressions
September 6th, 2018 at 11:30am
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Runtime: 10:00
0:40 Tesla Props Up the EV Segment
1:25 Garrett Turbo Gets Spun Off
1:56 Consumers Making Car Payments On Time
3:08 The SAE Is On An AV Mission
5:05 2019 Acura ILX Updates
6:26 2019 Hyundai Santa Fe Impressions
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On today’s show… if not for Tesla, sales of EVs would be dropping like a rock… consumers are doing a better job of making their car payments on time… and I’ll share my impressions of the new Hyundai Santa Fe. All that and more coming right up on Autoline Daily.
This is Autoline Daily the voice of the automotive industry.
TESLA PROPS UP EV SEGMENT
Here’s an eye-opening statistic. Tesla accounted for 70% of all electric cars sold in the U.S. market last month. In fact, if it were not for Tesla, electric cars would have been down a whopping 30%. Sales of the Chevrolet Bolt, BMW i3, Fiat 500e, and just about every other EV were down. Only the Nissan Leaf and Hyundai Ioniq were up, but not by much. This is bad news for the industry. Automakers will introduce more than 120 EVs in the US market in the next three years. But it seems like car buyers are not that interested in electrics unless they have a Tesla badge on them.
| U.S. EV Sales in August | ||
|---|---|---|
| All EVs | 12,127 | +60% |
| Tesla | 8,514 | +259% |
| w/o Tesla | 3,613 | -30% |
GARRETT GETS SPUN OFF
Garrett is one of the best known names in turbochargers. It’s been around since 1936 and has been manufacturing turbos for 80 years. You may not be all that familiar with the name because Garrett has bought and sold by a number of big conglomerates. The latest of those is Honeywell which is spinning off Garrett today as an independent, publicly traded company. It’s called Garrett Motion, and while it’s a brand new company it’s been around for the better part of a century.
CONSUMERS MAKING CAR PAYMENTS ON TIME
Car prices continue to grow, which is causing loans and monthly payments to reach new highs. But a new study from Experian found that, despite those increases, consumers are still making payments on time. During the second quarter of 2018, 30-day delinquencies dropped to 2.11% from 2.2% a year ago. And 60-day delinquencies also dipped as well. In addition to that, the number of subprime loans continues to fall. Subprime and deep subprime buyers are less than 20% of the loan market. A year or so ago, there was concern from some financial analysts over buyers defaulting on their loans but automakers and lenders have tightened up their credit standards, which has put those fears to rest.
Still to come… a look at the updates to the Acura ILX.
THE SAE IS ON AN AV MISSION
Earlier this year, the Society of Automotive Engineers did a demonstration with the public to let them experience riding in an autonomous car. On last week’s Autoline After Hours we were joined by David Schutt, the president of SAE and he talked about why it held the event and some of the reactions they got from participants.
(Clip from AAH #433 can only be viewed in the video version of today’s show.)
And don’t forget to join us for Autoline After Hours this afternoon. Our special guest is Christophe Marnat from the supplier ZF, who will be talking about the safety features its developing for autonomous vehicles. So join us Live at 3PM eastern time for some of the best discussions in the auto industry.
2019 ACURA ILX UPDATES
The Acura ILX is going to look a whole lot different for the 2019 model year. The body panels from the A-pillar forward are all-new and it features updated Jewel Eye LED headlights as well as Acura’s signature Diamond Pentagon Grille, which was first shown on the Precision Concept. The rear also sees an all-new decklid, fascia, LED taillights and lower diffuser with exposed exhaust outlets. Like the TLX, RDX and MDX, the ILX will get an A-Spec model with unique touches both inside and out. Speaking of the interior, not much has changed, but the screens are upgraded for better response time and now have Android Auto and Apple CarPlay compatibility. Acura’s suite of driver assist technology, called AcuraWatch will now be standard. The 2019 ILX starts hitting dealerships in October.
Coming up next, I’ll share my impressions of the new Hyundai Santa Fe.
2019 HYUNDAI SANTA FE IMPRESSIONS
Hyundai’s new 2019 Santa Fe is in dealerships now and one of the first things you’ll notice is the new styling. It has a more muscular look, highlighted by its near vertical Cascading Grille. Hyundai’s design team said it wanted to make the Santa Fe look less like a minivan and more like a SUV. As we move to the interior, you might pick up on a strong horizontal design theme. The center air vents have been moved below the infotainment system and now separates it from the HVAC controls. The driver also gets a large cluster display and there’s a couple of nice material touches. Best exemplified by the topographical-looking speaker covers and the heather-patterned material on the pillars and headliner. Hyundai is looking to set itself apart from the competition by offering almost all of its advanced safety features as standard. The only one that’s not is a Rear Occupant Alert. Power for the Santa Fe comes from two engine options, the standard 2.4L 4-cylinder or a 2.0L turbo four with 235-horsepower. Both engines are mated to a new, lighter 8-speed automatic transmission. Also new for 2019 is the HTRAC all-wheel drive system. Not only is it linked to the drive modes and will change characteristics as you cycle through from Normal to Sport, but it gets 50 vehicle input signals to best calculate torque split between all the wheels. The system is actually more predictive, rather than reactive. And it’s one of the things that makes this the best handling Santa Fe ever. The others are the body structure and suspension system. I highlighted a bit of the structure last week, but the suspension has been improved greatly as well. The suspension bushings have been updated to improve agility and vibration and shock absorption. At the front, suspension geometry has been tweaked, the shock absorbers and perches for the spring on the strut are enhanced and the steering knuckle switched from steel to aluminum to save weight. Moving to the rear, understeer has been improved by lengthening the assist arm, the carrier mount moved to aluminum for weight, the suspension structure was beefed up and the rear shock now sits more upright, putting it in line with the forces being exerted on the suspension. There’s usually one to two vehicles a year that really surprise at just how good they are and the 2019 Santa Fe is one of those vehicles for me. And as passenger car sales continue to plummet, as we reported yesterday, you’re going to see automakers put more effort in the CUV and SUV segments. They’re already competitive segments and as the bar keeps getting raised, it’s only going to get harder for an automaker to stand out. Now, let’s talk price. The base SE starts at $25,500. The top-of-the-line Ultimate starts at $35,450. All-wheel drive adds another $1,700 and all in you’ll be close to $40-grand. The 2019 Santa Fe is on sale now.
But that wraps up today’s show, thanks for watching and please join us again tomorrow.
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Comments (36)
September 6th, 2018 at 12:15 pm
The rear of that new ILX looks like a Buick I saw yesterday.
September 6th, 2018 at 12:37 pm
Yes, Tesla production is up and they are finally starting to work on that backlog of orders for the Model 3. I am curious to see what will happen when the backlog is gone. And, there are more choices from competitors available to consumers. There may be another reason Elon decided to put the second production line for the Model 3 under a tent: he isn’t planning to need it for very long.
I’m not hearing any amazing news on the numbers of new buyers adding their name to the waiting list for the Model 3. Elon would be smart to have a “right-sizing” plan for his carmaking operations that he can implement starting in about 18 months.
September 6th, 2018 at 12:43 pm
Hyundai standardizing all the ” safety features” would be a turn off for me. Certain advancements are great but I don’t want or need a car ” helping ” me stay in my lane and or blinking lights at me every time a car is beside me. I would shop elsewhere.
September 6th, 2018 at 12:46 pm
#GM Vet
Agree, Tesla’s Model 3 competitors are equal in most areas (and maybe superior and/or inferior in others); it seems it is the marketing and clickiness of the brand that is driving sales, the anticipation of ownership (of a rogue/rebel brand) and that that is propelling electric sales and the increase that we are seeing. I too wonder what happens when stasis occurs and sales level to what the buyers demand.
September 6th, 2018 at 12:48 pm
Too bad Hyundai did not improve the engines in the Santa FE. I test drove a 2018 and found the 2.4L to be sluggish. Hopefully the new transmission will give it some better get up and go. I love that color blue paint on the Santa Fe. Also the new instrument cluster in the 2019 looks far better than the 2018 coned instrument cluster.
September 6th, 2018 at 1:04 pm
I must say that someone in the Honda Design Studio must be a viewer of Autoline. The refreshed 2019 Honda Pilot is exactly what I had described in my previous comments. I suggested that the Pilot should look more like the Ridgeline than the CR-V. The fog light need to be higher to avoid curb damage and be circular. The reverse lights are moved from the bottom of the rear bumper to also avoid being damaged when parking or backing up.
The interior is great except for the instrument cluster. Why do we need such large temperature and fuel gages? They take up a lot of valuable informational real estate in front of the driver. Also a traditional circular tachometer is far more visually appealing than the bar type currently employed. Also I would like to see the Tan/ Carmel color leather interior available with all color choices especially the dark blue. I might be wanting to pick one up for 2020.
September 6th, 2018 at 1:04 pm
The Tesla sales numbers you provide, Sean and John, are woefully low ESTIMATES of the exact numbers. You really need to distinguish between facts, such as announced sales numbers from other automakers, and ESTIMATES, such as the 8,514 you provide. Didn’t you think about this number before printing it? How is it possible, with a half million tesla 3s in the backlog, and a production of 5,000 WEEKLY (or more than 20,000 in all of August), and the Tesla 3 being just ONE of the three models it sells, how is it possible that sales were below 15,000?
In fact, Tesla sales were estimated by other sources to be more than 23,000 for August alone.
See my posts about this in yesterday’s show and previous ones.
September 6th, 2018 at 1:04 pm
i and many of my friends live in an apartment complex, where am i going to plug in an EV? my complex is not going to install outlets for our cars
September 6th, 2018 at 1:05 pm
Any word when Waze will be able to run on Apple Carplay?
September 6th, 2018 at 1:06 pm
2, 4 you must be Kidding me! How deep in theand must one bury one’s head to not admit that Teslas are in fact far SUPERIOR than anything any other automaker, and especially GM and nonexistent Ford and FCA, has put out today?
Do you think it is a coincidence that only 1,200 Bolts were sold in August, vs 17,800 Tesla 3s alone?
You must be living in a dream world…
September 6th, 2018 at 1:26 pm
#8 Lex I have heard it’s a part of the iOS 12 coming out this fall. You should be able to use Waze with CarPlay. I’m really hoping this is true!!
September 6th, 2018 at 1:37 pm
#7, perhaps Tesla is shipping much of its current production to other markets like China, Norway and Europe. Production from one plant for the entire world is one thing, actual deliveries in the U.S. is another. And, since Tesla doesn’t publish monthly sales numbers, estimates are all anyone has to go with. Not sure what “exact” numbers you are referencing.
#2, I’m not burying my head in the sand, just recognizing the facts. Tesla has a large backlog of orders to fill. Once they have caught up and will need to produce to meet natural market demand, no one knows what that will look like. Hence my curiosity. Tesla makes a great product. But, they don’t have any magic engineering or technology that other large and very successful car companies can’t utilize. BMW, M-B, Audi and other more mainstream brands have a lot of talented people and are selling a lot of vehicles profitably. As more of the world market turns to electric propulsion, do you really think those companies are not going to address that market opportunity?
September 6th, 2018 at 2:38 pm
So basically what you’re saying about the EV market is if Tesla had not had a huge backlog of orders the EV market would be declining.
“It seems like car buyers are not that interested in electrics unless they have a Tesla badge on them.” or IMO just are not that interested in electrics period! Well, except for the folks that put deposits down months/year ago for a Tesla and are just now getting what they ordered.
So once all these backorders are filled will there be a huge decline in EV sales? My guess is yes!
September 6th, 2018 at 2:55 pm
#7 & 9 – Larry D – If you are not receiving payment from Tesla, you should be. Apologize to the other readers for the bandwidth. Have a good evening.
September 6th, 2018 at 3:11 pm
What is the latest life expectancy years of a EV battery? So when all these Tesla’s and others EVs are 7-8 years old and in need of a new battery what will the used value be? Dont suppose Tesla is offing any lease deals.
September 6th, 2018 at 3:15 pm
3 In the not-too-distant future you may be out of luck, if you want to avoid the safety stuff. It is steadily trickling down to less expensive cars, as it becomes cheaper to make.
September 6th, 2018 at 3:19 pm
2, 4 Tesla should have a wagon version of the Model 3 ready, for when they start catching up with backlog of the sedan. Tesla is doing a very good job of selling sedans that “nobody wants,” and they might be able to do equally well with wagons.
September 6th, 2018 at 3:25 pm
It looks like Hyundai are downgrading the powertrains of the Sante Fe quite a bit, replacing the very nice 3.3 V6, with a turbo 4. Of course, almost everyone else is doing that. Maybe the 8-speed transmission will partly make up for the 55 fewer horsepower.
September 6th, 2018 at 3:53 pm
14 A lot of predictions, are that 8 years from now, batteries might cost about a third what they do now. That would help when those cars need new batteries.
September 6th, 2018 at 5:12 pm
I wonder if OEMs are engineering these smaller turbo charged 1.5 to 2.0L engines to be easily swapped out of vehicles after 60-100K miles?
If would make sense since vehicles are lasting longer and only the electronics and mechanicals wear the fastest.
In this whole discussion of EV’s and PHEV’s I think most consumers want the security of knowing that if the battery loses charge they can switch over to gasoline, or once the infrastructure is built, hydrogen fuel to power their vehicles in the case of longer than usual trips IMHO.
September 6th, 2018 at 5:25 pm
I put off buying a new vehicle in anticipation of the New Honda Passport. The New Passport is reported to be a 5 passenger shorter version of the Honda Pilot. I hope it is a marriage between the Pilot and the Ridgeline. This would be a winning combination since Ford is resurrecting the Bronco and other OEM’s have similar projects in their pipelines.
September 6th, 2018 at 5:41 pm
And I think one of the reasons some of the OEM’s are pushing for one grade of higher octane fuel is because of the proliferation of all these small displacement engines with turbos.
September 6th, 2018 at 5:49 pm
19 I suspect most of these turbo fours will run 200K miles, if they are properly maintained, and not driven abusively. We should know in a few years, as the miles add up.
As far as them making sense, it’s not clear. Some of the Ford Ecoboost applications give both mediocre performace and gas mileage, in real world driving.
September 6th, 2018 at 8:18 pm
I also believe that with proper maintenance the small turbo engines should last to a greater extent as most any engine out there. Even the best engines out there can sucome to aberrant failures. Change that oil and let the good times roll.
September 6th, 2018 at 8:28 pm
They say to change oil more often with turbos. It’s 15K miles for my non-turbo 2010 Mini. It’s 10K for my sister’s 2017 turbo Mini.
September 6th, 2018 at 10:16 pm
I would think the engines will not be a problem, my concern are the trans, turbos, and other expensive pieces. We’ll see.
September 7th, 2018 at 12:18 am
The Tesla secret is their SuperChargers. I ran a BMW i3-REx benchmark driving to Nashville in EV and returning on the gas engine (see link.)
The EV segment cost ~$26, 143 miles, and 3.5 hours. The charging sessions were ~45 min midway and ~45 min in Nashville. Both 3d party chargers had problems requiring a service phone call and debugging. Good news, hitting Nashville rush hour reduced battery consumption 13% (4.7 mi/kWh to 5.3 mi/kWh.)
The gas leg return cost ~$6, 111 miles, and 2.5 hours. Topping off the battery at home was $0.77 that cost $6-7 at the 3d party chargers. The 3d party, fast DC chargers required service calls and one station had two of four chargers down. They do not share Tesla’s SuperCharger motivation.
Had it been a long-range Model 3, the same route would cost less than $7.80 electricity with no charging stops. The driver would known where the SuperChargers are; they charge twice as fast; if they are in use, and; secure Tesla keeps them working.
September 7th, 2018 at 12:40 am
About Tesla 70% share of EVs, at one time the Prius was ~70% of the hybrid and EV market. A new leader, Tesla is conquest selling to trade-in Prius, BMW, Accord, Civic, and Leaf owners (see link.) The Model S/X have already gutted the top-end, luxury car market.
September 7th, 2018 at 7:31 am
25 My turbo 1989 Dodge Caravan has the original Garrett Airesearch turbocharger, but it has only about 70K miles.
September 7th, 2018 at 7:40 am
27 I’m not surprised about that list, except maybe Civic. The thing that surprises me, is that they think people are trading Tesla S’s on Model 3′s. To me, the S looks better, has a better interior and controls, and much more utility. I guess some people just want something new.
September 7th, 2018 at 10:56 am
JWH:
Sure, of course Tesla is paying me millions per year to say how great they are. Don’e you already know that? The next thing you will say is that the moon is made of blue cheese and that Oliver Stone killed JFK.
I find your worthless insults unacceptable. I am the ONLY person in the forum that do not have the LEAST conflict of interest, I am neither paid nor do I own shares in ANY car company,m whether it is Tesla or the bankrupt losers in Detroit who obviously PAY YOU.
September 7th, 2018 at 11:14 am
12 – I agree with your statement except for your last sentence, “…except for the folks that put deposits down months/year ago for a Tesla and are just now getting what they ordered.”. Actually the people that put down deposits months/years ago were promised Model 3s for $35,000. What they are now having to order (if they want a Model 3) is a $50k+ version. This is definitely bait and switch, but it seems to be working for now.
September 7th, 2018 at 11:21 am
In 24 days, we’ll get the preliminary Q3 numbers and a month later, the Tesla financials. But I agree the Model S/X are not the same class as a Model 3.
Perhaps adding to the family fleet, the Model 3 makes sense. Other than a divorce settlement or estate sale, used Model S/X remain rare enough their depreciation is very shallow.
September 7th, 2018 at 11:34 am
#31 Yea I wasn’t sure how that was being handled with the folks that placed a deposit thinking they were ordering a 35K car and its now 50K. I’ve gone to the Tesla website and see the base MSRP for a 3 is now $49,000. So much for a reasonably priced Tesla.
I do believe this spike in EV sales is a flash in the pan and will trickle back to a small percentage of sales after the Tesla orders are filled. Until a better battery is invented Hybrids will continue to grow and I think the pure EVs will be stay a small segment of the market.
September 7th, 2018 at 11:45 am
#32 The Tesla used market I’m sure is rare and still with little depreciation. They came out in 2012 and only delivered 2650 cars that year. So they are just now getting to that 6 year mark. It will be interesting to see what happens to their value as the 7 and 8 year mark hit and they may be in need of a new battery that is still very expensive.
Cant imagine anyone buying a used EV with a 7 year old battery but as they say .. there is one born every minute.
September 10th, 2018 at 1:53 pm
Lets be honest-the i3/500EV were poor EVs from the start. Great tech in the i3 but the design was a flop. The 500ev is non-starter (even in Europe). The bolt is a good car but more usefully sold outside the US where smaller cars rule. Are Tesla not selling because they are (gasp!) good EVs. Same for the new Leaf and Ionic. Apart from the ionic and model3 what new (good) EVs have launched? Detroit (zero) and same for Japan and Europe. We’ll have to hope the VW EV & Honda/Toyota will launch something competitive.