On today’s show…VW’s chairman says EVs could become unaffordable for low income buyers…there’s more drama between Nissan and Renault…and Hyundai comes out with the first multi-collision airbag system. All that and more coming right up on Autoline Daily.
This is Autoline Daily the voice of the automotive industry.
MORE RENAULT-NISSAN DRAMA
The Renault-Nissan soap opera just came out with another episode. Here’s the latest: Renault wants to merge the two companies under the umbrella of a new holding company, though no specific proposal is on the table yet. The French government also wants Renault to name the new chairman of Nissan, but Nissan thinks the French already have too much power. So to prevent that from happening, Nissan is looking at eliminating the position of chairman. Meanwhile Carlos Ghosn, the former CEO of Nissan and still the chairman of Renault, is asking Japanese authorities to let him out of jail on bail, promising to wear an ankle tether and not flee the country. But before that’s likely to happen, the French government wants to dismiss Ghosn as chairman of Renault. Wow, what a soap opera. And when the next episode comes out we’ll tell you all about it.
TOYOTA & PANASONIC TO FORM BATTERY JV
Toyota and Panasonic are getting set to launch a joint venture to produce batteries for electric vehicles. Reuters reports that Toyota will own 51% of the company while Panasonic will own the rest. The two companies may officially announce the tie-up as early as this week. The deal would expand upon a partnership Toyota and Panasonic formed in 2017 to develop prismatic batteries. The new joint venture will help Toyota reach its goal of selling 1 million zero-emission vehicles by 2030.
VW CHAIRMAN SAYS EVs COULD BECOME UNAFFORDABLE
But not everyone will benefit from the shift to electric vehicles. Volkswagen’s chairman, Hans-Dieter Poetsch, told a German newspaper that EVs may become unaffordable to people with lower incomes because the technology will make entry-level cars more expensive. He said VW is trying to make EVs affordable to as many buyers as it can but it will be difficult to keep prices of small electrics down. If that’s true, it will create an even bigger headache for automakers to hit EV sales requirements.
Still to come…the next-gen Dodge Challenger will use an electric motor.
HYUNDAI’S MULTI-COLLISION AIRBAG SYSTEM
Multi-collision accidents are primary impacts followed by impacts with secondary objects, like trees or other vehicles. According to NHTSA, 30% of all accidents have secondary impacts. So, in an effort to improve its safety, the Hyundai Group is developing a new kind of airbag system that’s designed for these types of collisions. If the first part of the crash is not intense enough to make the airbags deploy, the system will recalibrate to lower the threshold and deploy the airbags even faster if a significant enough secondary collision occurs. This can be especially important because the initial impact can force passengers into unusual positions. You can expect to see this system on future Hyundai and Kia vehicles.
DODGE CHALLENGER TO GET ELECTRIC MOTOR
The Dodge brand has gasoline pumping through its veins, but soon it will be getting a boost from electric power. CEO Mike Manley says some of the engines used in its muscle car platforms will have to move on. “They can’t exist as you get into the middle-2020s. New technology is going to drive a load of weight out, so we can think of the powertrains in a different way… I think that electrification will certainly be part of the formula that says what is American muscle in the future.” So in other words, don’t wait too long for that Hellcat you’ve always wanted.
Coming up next, a look at the Indian car market in 2018.
2018 INDIA CAR SALES
We like to keep you up to speed with the entire global auto industry. So let’s take a look at how automakers fared in India in 2018. According to WardsAuto, light vehicle sales topped 4 million units, which is an 8% gain compared to 2017. While passenger cars outsold light trucks, the truck segment is growing at a much faster pace. The top automaker in India by a wide margin is Maruti Suzuki, which accounts for more than 40% of the Indian market. It’s a big drop off to Hyundai, which is number two on the list. And It’s followed by Indian automakers Tata and Mahindra. But that’s a quick snapshot into the Indian market in 2018.
| 2018 INDIA CAR SALES |
| Passenger cars |
2.3M |
+3.6% |
| Light Trucks |
1.8M |
+15.0% |
| Total Light Vehicles |
4.05M |
+8.3% |
| Top Automakers |
| Maruti Suzuki |
1.75M |
|
| Hyundai |
550K |
|
| Tata |
487K |
|
| Mahindra |
485K |
|
| Source: WardsAuto |
CHEVY CREATES SILVERADO MADE FROM LEGOS
We’ve seen a number of these Lego vehicles in the past, but this replica of the new Silverado has got to be one of the closest representations to the real thing. We wonder if that’s because trucks really are just bricks on wheels?
But that wraps up today’s report, thanks for watching and please join us again tomorrow.
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Comments (27)
January 21st, 2019 at 12:19 pm
Finally a Silverado that the rear wheel wells won’t rot out.
January 21st, 2019 at 12:29 pm
So here we are in 2019, well into development of government-mandated EVs, and it’s taken this long for someone (Volkswagen’s chairman, Hans-Dieter Poetsch) to stand up and state the obvious about the cost of these vehicles and what it will mean for the average driver. In a world of $50k-100k+ Teslas and $35k Chevy Bolts (none of which make any money for their manufacturers,)how in the hell do we expect people to be able to afford a new car more than once or twice in a lifetime and how is the auto industry going to survive this madness?!
January 21st, 2019 at 12:34 pm
If the Japanese authorities release Carlos, they will quickly learn if their ankle tether works at 35,000 feet and at 20 meters per second,
January 21st, 2019 at 12:46 pm
2 First of all, not ALL EVs are Government mandated. TESLAS dominate the market and nobody mandated them. The Mandated ones you can separate 10 miles away, they are the losers like the Fiat E 500, the Mitsu EV, the old Golf E, the Focus Electric and the like.
Second, if you want to ignore the USED car market, which is FOUR times the size of ther NEW car market in the US, you have nobody to blame but yourself. I wish somebody explain to me what is so divine about the ‘new car smell’ (which only lasts a few days anyway). Today you can buy EVs with low miles for as little as $5k (low range older models) and you can also buy Volts for $10k, and have no range anxiety, and above all, you can buy STELLAR Tesla S Flagships for $35,000. VERY affordable, $35k is the transaction price of the AVERAGE car in the US. OK?
Many people I know in fact consider those buying new cars at least economic illiterates, if not utter fools. Unless the car has some Safety Tech that the as good as new certified used 3 year old off lease vehicles have, there is no reason to waste your hard-earned $ on DEPRECIATION, is there?
I am always amazed at how undervalued used cars are, especially top of the line luxury cars. I have driven a Huyndai Elantra (Not by choice!) which was almost new 2 years ago, that worthless piece of cheap junk sells for more than $20,000 (!!!!!) and I paid only $10,500 and $11,000 for a 2007 and a 2008 Mercedes E 320, with all kinds of opptions, as good as new, and two and three years later still working FLAWLESSLY. I consider each of them 10 times better than the stupid Elantra.
January 21st, 2019 at 1:01 pm
Months, or years ago, I read that a new Challenger would move to the platform used by the Alfa Romeo Giulia. Is this what the “electrified” Challenger will be? The Detroit News article said “New technology is going to drive a load of weight out” (of the Challenger). I don’t see how that happens with the current XXL Challenger.
It still amazes me that they offer 4 different engines, 3 available with manual transmissions, in the Challenger. Do they make money on the car, or is it just a “halo” car to sell more minivans, or something like that?
January 21st, 2019 at 1:02 pm
Just curious if this statement was meant to be pithy, because all it came off as was a bit uninformed. “So in other words, don’t wait too long for that Hellcat you’ve always wanted.”
The electrification of a vehicle usually adds performance and speed. Just ask the Chevrolet product people, and they will tell you, off the record of course, that the Camaro Hybrid will out perform most of the current ICE models.
January 21st, 2019 at 1:02 pm
India Car sales: I applaud your keeping us up to date with sales around the world, but how many can put these numbers in perspective?
Some may see 4 million light vehicles, and an impressive 8.3% increase over 2017, but may miss that India has almost the same population as CHina, the two nations started their lives equally poor in 1947 and 1949 respectively, but where are they today?
China’s new sales are of the order of 25 to 30 million annually, compared to Indian sales of barely 4 million in a good year. In addition, I bet the average car sold in India is a cheap POS priced at half the average price of cars sold in China. You mention the Suzuki Maruti. This is a truly execrable cheap piece of junk, and an unfortunate cousin of mine once bought one for her use in the old country (she and her husband were successful dentists, he drove BMW 5 series usually) and she told me she had NEVER bought such a GOD AWFUL Vehicle, it was in the shop all the time. Despite the “Suzuki” in its name, it has the reliability of the local cars in india apparently.
January 21st, 2019 at 1:03 pm
Larry D, you are repeating yourself. You seem fixated on your very brief and emotional impression of the Elantra.
Back to the news, (EV affordability) I just wish the various governments would just set reasonable emissions & safety goals and let the worldwide carmakers and businesses solve the problems in a way that consumers want and can afford. Eventually the traditional vs innovators will come to a balance both in the stock market and the supermarket parking lots organically.
January 21st, 2019 at 1:09 pm
4 Some of us buy new cars to get the color and/or equipment (or lack thereof) that we want. I wanted a near zero option MINI in 2010, and got what I wanted new for about the same price as the same generation used ones available, which had options, including an automatic transmission that I didn’t want. The same applied with the 2016 Corvette, especially with the use of my retiree discount.
Yeah, if I ever wanted an S-Class, 7 Series, or similar, it would be used. Those cars depreciate very quickly, and there is little choice in how they are equipped anyway, at least in the U.S.
January 21st, 2019 at 1:14 pm
8 A friend has an Elantra hatch, 3 or 4 years old, and likes it just fine. While not luxurious, it is utilitarian, fairly fuel efficient, and has been reliable.
January 21st, 2019 at 1:20 pm
@#7
I may be ignorant to the facts but I still think of India as a 3rd world country with a low average income.
With that said and the lack of gov’t safety regulations I can see how the “Pieces of Crap” are still being sold there.
Yes, It wasn’t long ago that China had sub par cars with poor sales, but I believe the average income has increased, at least in the major metropolitan areas and safety standards are being required by the gov’t. It may be province to province, but gains are being made.
January 21st, 2019 at 1:33 pm
9 I am aware. When I bought that tiny Pontiac new, I wanted a specific color exterior and interior and also an $120 option (back in 1983, or $500 in today’s $) which were a cluster of gauges, (oil pressure etc instead of ‘idiot lights) and I had to wait 6 weeks to get it. It was so late, I remember finally getting it on a Friday and having to go to Chicago for a conference on Sunday, but when I took it home there was something wrong with the clutch pedal plus some pain chips at the edges, so i returned it to be fixed the next day and it was ready for the trip.
10 Continuing on the above, I too was happy with the Pontiac, the first 9 out of 11 years it was reliable as far as major items go, but when I got the next car (a used Accord coupe 1990) I liked it much better and I realized how awful the Pontiac was, which you also owned and you described it as a “lemon”.
The Hyundai I had to rent was a 4 door, but I doubt very much the hatch is any better, except in styling and maybe trunk capacity. it is a really cheaply made car, lots of cheap plastics, very lightweight doors, tinny, makes you feel unsafe. A Kia I rented the next time (admittedly a low-end Rio) was just as bad.
Flagship luxury cars do have many options, even my mid-size Es have at least 5 things different from my 2007 to 2008 ( auto closing trunk, wood veneer on the wheel, rear curtain, and a few others) despite being mass market models.
The cars that are the most unique where it makes sense to buy new to choose what you want are the most expensive of all, Rolls Royce Phantoms especially, with list prices of about $500,000 and transaction prices after options ranging from $650,000 to close to a million $. There you truly design your own car in great detail and make it custom-made.
January 21st, 2019 at 1:35 pm
Buying a new car does have its benefits such as proper break in, 100% fresh everything, and latest tech. And if you time it right, end of year, end of month, winter season, model change overs, and more, you can drive the price down nicely. The last week of December,the last week of cold February, and other times are ideal buying times to get the great deals. Plus you do not have to run a CARFAX on your purchase!
January 21st, 2019 at 2:06 pm
12 An E-Class has a lot more options than an S-Class. For example, the last I checked, probably 2018 model year, “keyless go” was an option on an E, as is leather seats, but both are standard on an S. That just two things, but there are others.
January 21st, 2019 at 2:14 pm
14 I’m partly wrong. “Keyless go” is an part of a $5K package on the “base” $91K S-Class. Incredible. It has been standard on every Prius since 2004.
January 21st, 2019 at 2:14 pm
Liking that Lego Silverado. I don’t know which vehicle was the first to get a life-size replica made, but this functional example of the Bugatti Chiron (which is actually powered by Lego propulsion) is quiet exceptional too:
https://youtu.be/ZQdlCQmzUAM
January 21st, 2019 at 2:18 pm
12 A “cheap” ~$60K base price Porsche Cayman has one thing in common with a Rolls-Royce. You can get custom paint of your choice, for $11,430.
January 21st, 2019 at 2:31 pm
I wish we could post photos here, I have one of the sticker page of an EWB Rolls Phantom, to show all the options:
The car had an MSRP of $470,295.00 US as of 2012 or so.
Dealer Options (rather modest for this sort of car) brought the total to $586,270.00.
There are about 20 of them. individual back seats are a $8,475 extra, rather reasonable compared to “drinks cabinet between those individual seats” for $11,000 and especially “Drinks Cabinet in Rear Doors” for $19,000.
Who wants to be a RR Dealer?
Alternatively, you could buy the base model and save $116,000 for a nice Merc SL or 911 for the ‘little woman’
January 21st, 2019 at 4:10 pm
I need to visit a Rolls dealer sometime, if they’d let me in. It would be interesting.
January 21st, 2019 at 4:23 pm
I found that the dealer group which sold me my MINI has a Bentley/Lamborghini/Rolls-Royce dealership in Orlando. Maybe they’d let me in, since I’m a customer. I checked their inventory, and the only Rollses they have are trucks, but they have some interesting Bentleys and a Lamborghini Aventador.
January 22nd, 2019 at 7:45 am
20 The nearest RR dealer is at least half an hour drive from here, if not a full hour, and I have never visited, but I did visit a RR bentley dealrship in Berlin in 1999, when I was for 6 weeks in the summer. The store was in the main avenue “Unter der Linden”, its former East Germany extension. I saw the Silver Seraph and the Arnage but did not ask for a test drive. They also had some vintage ones.
I have read somewhere that some time ago Ferrari made more $ by selling trinkets (keychains, t-shirts, caps, etc) than by selling the actual cars. One can always enter a RR dealership and buy something similar. I don’t think they have bouncers at the entrance, but I am not sure if they would let everybody test drive the demos.
January 22nd, 2019 at 7:49 am
Lots of news this morning, several automakers are building new battery factories ( such as Mercedes in Poland) and others cooperate in the EV area rto save costs.
Tesla has trouble making a profit by finally offering the $35k model 3, and try to compensate by selling pricier model 3s to Europe and China.
I saw where the model 3s are going in the US. It is a very uneven distribution by state, the top one is easily predictable (CA), but what % of the model 3s go there? States no 2 and esp 3 are harder to guess, unless you google it.
Quiz: CA’s share of Model 3 registrations is closest to:
a) 10%
b) 20%
c) 30%
d) 40%
e) 50%
Hint: the next highest number is 5.1% and the third is 4.3%. Find states 2 and 3.
January 22nd, 2019 at 7:50 am
There was also a story about the guy who ordered a $35k model 3, was told he is next in line but the price would be $48k, and instead be bought two prii, a new one for $28k and a used one for $13k. He is still interested in a Model 3 but he balked at the price.
January 22nd, 2019 at 8:21 am
21 I wouldn’t expect to test drive a Rolls, but it would be interesting to see the cars, and the dealership. The dealer in Orlando has some pre-owned Ghosts and Wraiths, but no Phantoms.
22 I found data on CA, and number state number two, FL. I’m not surprise the FL is number 2. I’m starting to see Model 3s a few times a week, mostly around town in the Cape Canaveral/Cocoa Beach area. I have never seen one one I-95, but I see an S on the interstate fairly often when driving to Jacksonville.
January 22nd, 2019 at 8:37 am
24 Oops, lots of typos.
I found the rest of the top 10 states in Model 3 sales. There were some surprises to me, but the states that might be considered “anti-EV” have large population, explaining the numbers. A list of Tesla 3 market share by state would look quite different, in some cases.
January 22nd, 2019 at 12:56 pm
Buying a new car is an indulgence for us. They’re generally easier to finance, too. The 10 year/100k mile warranty is nice as well.
As we drive them to death, there is no depreciation calculous involved. We haven’t made a payment on the 06 Outlander for eight years now.
Agree about when to buy. Our 2016 Outlander was the last on the lot and we rolled in with two hours remaining in the month and the quarter.
Sticker was $29k and we got it for $21.5k A fully-optioned SEL. We’ll probably drive it for 15-20 years, too.
January 22nd, 2019 at 1:07 pm
26 I didn’t realize discounts (in percentage) were ever that big. You got a very good deal.