AD #2445 – SEC Sues Musk for Fraud, Infiniti Develops Car with F1 Tech, Millennials Do Like Cars
September 28th, 2018 at 11:42am
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Runtime: 8:18
0:30 SEC Sues Musk for Fraud
1:14 Volvo Trucks to Test Electric Trucks in CA
1:53 Valeo’s Smart Cocoon Technology
3:17 Mercedes Names New Hypercar
3:56 Infiniti Develops Car with F1 Tech
4:36 Kia Introduces the New K900
5:59 Millennials Do Like Cars
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On today’s show…Elon Musk is in serious hot water…Mercedes and Infiniti are developing vehicles with Formula 1 technology…and contrary to popular opinion, millennials do want to buy new vehicles. All that and more coming right up on Autoline Daily.
This is Autoline Daily the voice of the automotive industry.
SEC SUES MUSK FOR FRAUD
Uh oh! Could this be the end of Elon Musk’s reign as CEO of Tesla? Yesterday the Securities and Exchange Commission sued him for fraud and is looking to ban him from serving as a officer or director of any public company, including Tesla. It stems from Musk’s tweet in early August that he was thinking about taking Tesla private and had secured the funding to do so. The SEC says that was false and misleading. Musk released a statement saying he did nothing wrong and more importantly he still has the backing of Tesla’s Board. But if Elon is removed, it leaves the future of Tesla in serious doubt, since he is so interlinked with the company.
VOLVO TRUCKS TO TEST ELECTRIC TRUCKS IN CA
Volvo Trucks is gearing up to introduce all-electric commercial trucks in North America beginning in 2020. But before it sells them, it will demonstrate the technology in California next year. It’s a public-private partnership in which Volvo will deploy eight electric Class 8 trucks, plus an additional 15 commercial trucks in the test. Smart technologies will also be used, including geofencing and smart diagnostics, to help monitor and maximize the vehicles. It’s estimated that the project will reduce around 3,000 tons of greenhouse gases annually.
VALEO’S SMART COCOON TECHNOLOGY
One of the ways to extend the range of electric cars, is to reduce the electrical load from the heating and air conditioning system. To that end, the supplier company Valeo developed what it calls the Smart Cocoon. When you get in a car, infrared and biometric sensors scan your body. They measure your heart rate, body temperature and other factors. And that can activate heating or cooling panels in the door and roof that are close to your body, which use far less energy than a traditional HVAC. If someone else gets in the car who may have been running and is hot, it scans their body and sets their temperature accordingly. Interestingly, Valeo also found that if you use red lighting inside a car, people will perceive the interior being warmer. If you use blue lighting, they will think it’s cooler. And that perception can be by a couple of degrees. Valeo says we could see something like the Smart Cocoon in another 3 to 5 years.
Still to come…Kia reveals the new K900.
MERCEDES NAMES NEW HYPERCAR
Mercedes has dropped the word ‘project’ from its upcoming hypercar and the production version will officially be called the Mercedes-AMG ONE. The name, in part, comes from the fact that it will feature Formula 1 hybrid technology, like its 1.6L turbocharged V6 engine and four electric motors. The company also announced the ONE will have active aerodynamics, a technology it’s been honing since the 1950’s. A multi-part, two-stage extendable rear-wing provides maximum downforce in race mode. The Mercedes-AMG ONE will be shown at the Paris auto show.
INFINITI DEVELOPS CAR WITH F1 TECH
And speaking of Formula 1 tech at the Paris show, the Infiniti Project Black S will showcase how F1 dual-hybrid electric powertrain technology can be deployed in a road car. The prototype fuses a 3.0L twin-electric turbo V6 with three motor generator units and an energy recovery system, which combines for over 560-horsepower. The Project Black S will be able to do 0 to 100 kilometers an hour in under 4-seconds and Infiniti says this car will be forging a path towards performance-oriented vehicle electrification.
KIA INTRODUCES THE NEW K900
And while we’re on the subject of reveals, Kia just introduced the second-generation K900. Styling has been updated with a new grille design that looks wider and narrower than before. The lower fascia has been reworked and the side fenders no longer feature exhaust ports. You will also notice the headlights and taillights, which don’t cut into the decklid, are blockier compared to the outgoing model. The reworked interior is highlighted by a 12.3-inch display screen and Kia says the ease of operation was improved by reducing the number of interior switches and controls from 91 to 73. Power will come from the same 3.3L twin turbo V6 found in the Stinger that produces 365-horsepower and gets mated to 8-speed automatic transmission. The new K900 goes on sale later this year.
There’s a perception that millennials don’t like cars but that’s not the case. We’ll have more about that right after this.
MILLENNIALS DO LIKE CARS
There’s a perception that millennials don’t want to own a new car. But Professor Mike Bernacchi from the University of Detroit-Mercy, has data that refutes that. He’s our guest on Autoline This Week, and he talked passionately about how millennials’ car buying habits differ from older generations.
(The ATW preview is only available in the video version of today’s show.)
You can watch that entire discussion right now on our website, Autoline.tv or you can find it on our YouTube channel.
But that’s it for today, thanks for watching, have a great weekend and we’ll see you back here again on Monday.
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Comments (16)
September 28th, 2018 at 11:59 am
no surprise, top of the news is the SEC Suit vs Musk. He may get away with it and have it dismissed, but the bigger question is, will this latest trouble convince Elon to keep his big mouth SHUT for a change? OR at least to have a good lawyer preview all of his stupid tweets before he unleashes them to the public?
It is a pity, because this quarter will be Tesla’s best ever, and the gains will dwarf even the very successful previous quarter.
Back in yesterday’s show, Clueless Jim Hackett is at it again! Wasting Ford’s time in talks with whom? The CROOKS at VW, who have paid untold billions for their diesel scam, and the even bigger Crooks and cheats at MAHINDRA, the junkmaker from India that FCA is taking to court for copying Jeep, and the samew MAHINDRA which, a few years ago only, really hurt many US Auto Dealers by promising to sell its crap in the US and then never doing so, after these dealers had spent millions on new showrooms and other facilities to accomodate the worthless POS.
Wise move, Hackett.. NOT!
September 28th, 2018 at 12:03 pm
Yes, Milennials do like cars. They just could not afford them before, but now that they can, they will give the finger to both Mobility and AVs.
Wise up, Automotive Industries!!! You lost billions in “Fools Cells” all thru the 90s and 00s. Do you never stop? Just repurchase your own shares, if you have no clue how to make a Superior and more Affordable vehicle instead.
And when you are done with your AV and Mobility cheerleading, take a moment to reflect about the huge ETHICAL problems AVs pose, that have MAJOR LEGAL and Financial consequences for the peddlers of this stuff!
September 28th, 2018 at 12:26 pm
It’s hard to believe that Kia will do a next generation K900. Their record year was 2015, with 2,524 U.S. sales. The record month for 2018, so far, was April, with 40 sales.
2017 455
2016 834
2015 2.524
2014 1.330
September 28th, 2018 at 12:30 pm
Valeo – it’s not a City in California (Vallejo).
https://www.youtube.com/watch?v=Cq5jlKBMJJg
September 28th, 2018 at 12:37 pm
3 right. The Koreans tried untold times to enter the luxury market and failed repeatedly until they tried a separate brand (Genesis) which also did not do too well. But the 900? Why would they pick Kia of all brands, which has the cheapest, junkiest image, cheaper than Hyundai itself, to sell a big expensive car like the semi-luxury 900? to give Kia a more upscale image, of course.
“if at first do not succeed, try, try again…” The Koreans have not seen the rest of the motto which goes “..then quit. No use being a damn fool about it” (from a poster I got in my office named “Murphy’s laws on Work”
September 28th, 2018 at 12:52 pm
I took one of Bernacchi’s graduate level courses while at UofD many years ago. He makes a good point.
The urban legend that millennials don’t want to buy cars has been fueled by what Bernacchi aptly pointed out about their method of buying. But also the fact that a higher percentage of their generation see cars as just a tool instead of an extension of their own identity. But tool or not, they still know they need one to get to work and back.
September 28th, 2018 at 1:09 pm
5 Even the Genesis G80, which seems a good value for a near-luxury sedan, has fallen drastically, year-to-year, between 2017 and 2018.
G80 sales 2017 2018
January 1.350 1.243
February 1.255 1.086
March 1.347 1.049
April 1.083 786
May 1.355 840
June 1.276 642
July 1.339 498
August 1.484 477
September 28th, 2018 at 1:19 pm
7 those are huge drops. 1,484 to 477! And the reviews were not as bad for the Genesis sedans as they were for other cars that saw their sales drop that much (Fiat 500 etc). I wonder if they did not put incentives on the hood etc.
The G80 and the longer G90 are affordable luxury cars, just not as refined as their established rivals. The new G70 is a 3-series rival and could be seen as near-luxury.
September 28th, 2018 at 1:46 pm
8 A friend has a base G80, and likes it. I just looked at CR’s tests of the G80 vs the current E-Class, and the road test results are very similar in most areas. Acceleration is nearly identical for the NA v6 Genesis, and the turbo 4 Benz. The Benz got 20% better mpg, but needs premium, while the Genesis uses regular. At the gas prices I see, fuel cost per mile would be about a wash. The cars got the same ratings for “ride” and “noise,” but the Benz was on tick better in both routine and emergency handling.
Base MSRP of the G80 is about $11K less the the E300, but by the time you equip them comparably, with the safety gadgets, leather, keyless go, etc., the price difference would be closer to $16-18K. Then, the Genesis has the best, or nearly the best warranty in the business.
Hyundai is starting to set up separate Genesis dealerships, a la Lexus, which may help. Still, people aren’t yet ready to buy a $42K Hyundai, even though it is actually a good buy, at least for a new car.
September 28th, 2018 at 2:20 pm
9 I believe the Tesla S has done a lot of damage to some high-price sedan segments, in the flagship segment (which has low sales) it dominates even the Germans, and its cheaper versions must have taken some demand from the 5 series and the E class and Genesis. This is a trend I don’t see going away. the Tesla 3 has done even more damage to sales of its rivals, 3 series, C class etc.
Re Lexus, while I did look for LS460s last year, when I was thinking of moving my first diesel Merc overseas and donated my US car after 20 years to a charity that i can write off its Kelly blue book value (and not the lower sale price the charity gets), I found no bargains.
When Lexus started in 89, it was positioned as a wedge between the E and S class, and blatantly copied S class styling, but was not that big or luxurious as an S class. Still it had a V8 and was priced less than the E class (esp the E 400) so it was easy for it to sell well. At that time it did not offer an L version. I also drove an early LS400 with 110k miles its owner was selling for about $10k, and its handling was atrocious, it wallowed like an old Caddy or Buick. Today Lexus is not doing as well. maybe the spindle grille is to blame. Also its ES300 or 350 never appealed to me. A realtor drove me around in hers (funny, her husband is from Germany and works in the Auto industry-supplier) and the car was a confusing mix of some isolated luxury touches, surrounded by acres of gray plastic. And of course poor handling.
September 28th, 2018 at 3:30 pm
I had a first generation Lexus IS hatchback, “SportCross” in Lexus-speak. It drove well, and had a nice, though kind of thirsty inline six borrowed from the Toyota Supra. The car was not particularly quiet, though.
There are a bunch of RX’s at my condo complex, but all of them, that I can think of, are pre-spindle. At least one of these owners would like to get a new one, except for the front end, so he’s keeping the old one. When I bought my condo in 2003, I was driven around in an RX300, which would have been the first generation.
Yeah, the ES is a gussied up Camry or Avalon, depending on the generation. You pay quite a bit more money, for not much, with the ES, but it was Lexus’ best seller for a few years.
I’d heard the early LS described as wallowy, as you do, but others liked the ride and were ok with the handling. It probably depends upon whether you were used to old Buicks, or BMW’s.
September 29th, 2018 at 11:51 am
Re: the G80′s poor sales~~If you lived in South Florida, you’d never know how badly it’s doing. On the roads here, you’d swear it’s the best selling car! I literally see 100′s of them daily!
September 29th, 2018 at 2:24 pm
12 I don’t see many G80′s in the “space coast” area. My friend with the G80 is a “snow bird” who spends summers in Indiana, and winters in Venice, FL. He bought the car in Indiana. He was able to get exactly what he wanted, zero options, silver with light grey interior. It took a few weeks. The car was new, rather than from another dealer, so they either got it from a big field where they put cars when they come off the ship, or maybe “reserved” it while en route from Korea.
September 29th, 2018 at 7:32 pm
Musk and SEC:
Elon Musk and Tesla Settle With S.E.C. in Fraud Case https://nyti.ms/2QjQXIR
September 30th, 2018 at 9:49 am
12 Maybe you just see ONE G80 that goes around the block 100s of times. Or maybe Floridian Retirees believe that Genesis designed this vehicle specifically for those around 80 years old.
Yesterday I saw two very different EVs, have seen them before, but now I changed my mind about the Tesla X, which I saw in great detail, from many angles, as it turned, passed me etc. It was a white one, and it looked very smooth styling wise. It did not look like an SUV, due to its rather low ground clearance, it looked like an elegant 5-door coupe with lots of room inside, kind of like the BMW X6 but much smoother and with much more room. It looked great.
I also saw a black Bolt from a 90 degree angle. Despite the efforts of the designers to put lipstick on the thing, (chrome accents all over the body too) its terrible proportions made it look really bad.
The thing makes the prius look elegant, being much shorter but much taller. a bloated, heavy hatch for $42k. What was GM thinking?
The BMW i3 is a similar (but different styling) failure, it is also tall and short, a tall hatch really, and no amount of twists and turns of the sheetmetal helped to move it. Its sales were a failure too.
Musk had to resign his Chairmanship of Tesla but is still the CEO. Maybe this is for the best.
September 30th, 2018 at 10:08 am
My friend who bought the G80 is only a few years from 80. Part of why he bought it, is that it has simple, intuitive controls, for a recent car.
Both the i3 and Bolt are probably tall, because tall is fashionable.
Mercedes F1 must expect a lot of DNFs during the rest of the season, since they felt the need to deny Bottas a win in Russia.