On today’s show… Geely shows off its first vehicle built on a Volvo platform… Tesla gets the green light to sell the Model 3 in Europe… and Ford’s decision to go all aluminum with the F-150 is paying off. All that and more coming right up on Autoline Daily.
This is Autoline Daily the voice of the automotive industry.
GHOSN BAIL REQUEST REJECTED AGAIN
We’ve got a quick update on Carlos Ghosn. Yesterday we told you he offered to wear an ankle tether if he was allowed to leave jail on bail. But his request was once again rejected by a Tokyo court, which means he will likely remain in custody until his trial begins.
EUROPE APPROVES TESLA MODEL 3
Good news for Tesla. It was just given permission to start selling the Model 3 in Europe. The company is expected to introduce the EV next month in the region. But it’s going to be a bit pricier. The cheapest version of the Model 3 will start at nearly 59,000 euros or about $67,000.
GEELY REVEALS CUV BASED ON VOLVO ARCHITECTURE
Geely, the parent company of Volvo, is showing off the first pictures of a vehicle that will be built on its compact modular architecture, which it shares with the Swedish automaker. The XC40 is currently the only Volvo built on that platform, but as you can tell the FY11, as it’s called, has a much more sporty design. It has distinct styling at the front and rear, but looking from the side you might mistake it for a BMW or Mercedes. The FY11 is powered by a 235-horsepower 2.0L turbocharged 4-cylinder engine, which can be paired with either front- or all-wheel drive. Geely has expressed interest in entering the U.S. and European markets and if it’s able to match a cost advantage with styling like this, other automakers better start to worry.
Still to come… VW introduces a new version of the Golf with more power.
THE MANY USES OF DIMMABLE GLASS
The supplier Gentex is showing how its dimmable glass technology in mirrors can play a role in other areas of the vehicle. For example, it can be used to help conceal cameras mounted on the windshield near the rear-view mirror when the car isn’t operating. This a feature that appeals to designers because it can clean up the look of the vehicle. Another example is using the technology at the top of the windshield to block light that falls between the sun visors. The company has also equipped it in a pop-up Head-Up Display, which helps minimize the sun from washing out the display screen. Lastly, Gentex showed how it can be used in the sunroof and back windows to control light. It can let up to 55% of light into the vehicle or in a darkened state, less than 1% of the light is allowed in. The supplier is working on similar technology with Boeing for its 787 Dreamliner airplane. But in automotive applications this could be ideal for an autonomous vehicle, when a rider would like more privacy. This info comes from our coverage of CES. If you want to check out those videos, just head to the Autoline on the Road section of our website, or you can find it on our YouTube channel.
VW STARTS SALES OF GOLF GTI TCR
A nearly 290-horsepower version of the Volkswagen Golf sounds pretty fun, doesn’t it? The automaker has been showing off a concept version of the GTI TCR for a while now, but it’s finally started sales of the real deal. Highlights include a front splitter, roof spoiler, rear diffuser, 7-speed DCT and 0-100 kilometers an hour in 5.6-seconds. But all that exclusive content doesn’t come cheap. The GTI TCR is priced at nearly 39,000 euro or over $44,000 in Germany. There are currently no plans to bring the car to the U.S.
KARMA PARTNERS WITH PININFARINA
Karma Automotive, which you may remember sells a rebranded version of the Fisker Karma called the Revero, is partnering with Italian design house Pininfarina. There aren’t many details about the tie-up but the companies say they’ll show off the first results of the partnership sometime in the second quarter of this year.
Ford’s decision to go with an aluminum F-150 was a profitable one. We’ll tell you why, right after this.
ALUMINUM F-150 PAYS OFF
When Ford went with an aluminum body on the F-150, Chevrolet launched TV ads making it look like the aluminum could easily tear or be dented. But the ads turned out to be a waste of time. Last year the aluminum F-150 outsold the Chevy Silverado by 258,000 trucks. Even though aluminum is more expensive than steel, Ford’s Jim Farley told financial analysts the aluminum truck is more profitable than the steel truck it replaced, and it gets an average $2,000 more in pricing than its competitors do. Chevrolet and Ram have proved that you don’t need to go all aluminum to be competitive from a weight standpoint. But Ford says that the decision to go with aluminum has proved to be a very profitable one.
DETAILS OF FORD & VW ALLIANCE
We’ve got more specifics on the collaboration between Ford and Volkswagen. The data firm LMC Automotive reports that Ford will take the lead development for a mid-size pickup that will replace the Ranger and the VW Amarok and will go into production in 2022 with global production of 380,000 trucks. Volkswagen will take lead development for the replacement of the VW Caddy and Ford Transit Connect. Global volume will be 370,000 of the small vans and they go into production in 2023. Ford will take lead development of the Ford Transit and VW Transporter and those large vans will also come out in 2023 with global volume of 630,000 large vans. That means total volume will come to 1.38 million vehicles, with 830,000 of it going to Ford and 550,000 going to Volkswagen.
But that wraps up today’s show, thanks for watching and we’ll see you again tomorrow.
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Comments (35)
January 22nd, 2019 at 12:04 pm
I don’t see how they can tie the use of aluminum with sales, maybe I’m wrong but I would think almost every buyer doesn’t care what the truck is made of just what the end result is.
January 22nd, 2019 at 12:29 pm
I was thinking similar Buzzerd; when you’re the p/u leader for so many years I don’t see their conclusion, though it certainly wasn’t the wrong way to go. Chevy’s ad by puncturing the bed is also credible but just didn’t sway too many sales. It seems Ram’s head-on attach to make a better p/u worked for them; probably taking some Chevy and Ford sales.
January 22nd, 2019 at 12:32 pm
@2 I would think Ram is stealing sales for sure. I’ve owned many chevy trucks but I think Ram really nailed it. It looks like it’s still the bean counters vs the truck guys at GM.
January 22nd, 2019 at 1:03 pm
Farley either flunked Auto Business 101 or is taxed with delivering a hallow party line. If two OEMs can reduce the weight of a vehicle without adversely impacting customer attributes… the OEM that does it with lower cost has a stronger technical foundation. Ford simply cannot be weight and package efficient without premium materials. GM is the rock star in this aspect (Honda and Hyundai/Kia have similar technical excellence).
Ford F-Series profits come from a richer trim mix, which was an advantage GM enjoyed in the 80s and early 90s. Starting in the mid 90s, Ford strategically focused on expanding the F-Series appeal… Lightning, Nite, more capacity of super cabs, then crew cabs, Harley, King Ranch, then Limited, Raptor, Platinum, etc. Aluminum’s contribution the F-Series profit can only be assessed relative to the cost of CAFE compliance… not revenue, Jim.
January 22nd, 2019 at 1:07 pm
I was thinking the same thing about the Ford Truck sales. Doubt the choice of aluminum had anything to do with sales and was more about Chevy needing a refresh and got a bad one at that. Plus as always pointed out if you combine the Chevy and GMC sales(Essentially same truck and are both GM) the disparity was not that dramatic.
Currently the Dodge is the best truck for the money IMO, the new design is attractive, it has the best ride quality and is on par or has minor differences in all the categories that trucks are judged on. Hasn’t been able to hold the value as well as GM and Ford but they could close that gap.
January 22nd, 2019 at 1:12 pm
The show said Ford gets $2000 more per truck than the others. Apparently that cancels out the higher materials and/or manufacturing cost.
As far as these current big pickups, Ram is my favorite, at least in appearance, and appearance of the interior, from photos I’ve seen. The manufacturers don’t care about me, though, because I’m not buying any of them.
January 22nd, 2019 at 1:15 pm
I’m surprised they haven’t made a Hellcat version of the Ram pickup. Maybe they are waiting for demand to drop for the truck, or for the other Hellcat applications, which may be stretching engine production capability.
January 22nd, 2019 at 1:17 pm
With regard to truck sales, GM’s sales are distributed over 4 nameplates, covering 2 segments. It’ll be interesting to see how well F-Series maintains its sales margin over Chevy and Ram after the Ranger is up to full effect.
January 22nd, 2019 at 1:29 pm
I would also like to see a cost comparison of a repair bill from a damaged bed Ford vs Chevy. I’m guessing that may be reflected in insurance rates.
January 22nd, 2019 at 1:41 pm
After you get past the gee-whiz factor of the large Tesla-like tablet in the new Ram, I like the exterior styling of the old Ram by a wide margin. The new one lacks personality (bodyside curves are too feminine, chrome tack-ons, Tundra-like face). Just my opinion.
January 22nd, 2019 at 1:47 pm
9. The aluminum F-150 is among the less expensive trucks to insure because Ford did its homework and designed the truck to be easier to repair after a collision. An entry level F-150 is actually cheaper to insure than a Chevrolet Colorado. Source: Insure.com
January 22nd, 2019 at 1:53 pm
@11 Separately, congrats on your retirement.
January 22nd, 2019 at 2:01 pm
I don’t see where Ford is getting at conflating the use of aluminum with sales. The F150 is an attractive vehicle, rides nice, huge quiet interior, decent fuel economy, and has a ton of features for the money. That formula is what is winning them sales. The use of aluminum is only a part of that total formula.
January 22nd, 2019 at 2:32 pm
#11 Maybe when it comes to repairing the truck as a whole it might be cheaper, however “Tests by the Insurance Institute for Highway Safety found that repairing body damage on the aluminum-bodied 2015 Ford F-150 took longer and cost 26 percent more than on the 2014 F-150 made of steel.” That quote was from Wards.
January 22nd, 2019 at 2:37 pm
Continuation of #14 the repair cost increase was attributed to the increase cost of parts not labor so the aluminum truck is probably just as easy to repair but would cost more for the aluminum pieces.
January 22nd, 2019 at 2:44 pm
@15 High tech LED headlamps and taillamps are very expensive…. likewise for the radar sensors and all the fancy outside mirror content (power fold, repeater and puddle lamps, etc). Those repair costs have nothing to do with aluminum.
January 22nd, 2019 at 2:58 pm
The Ford/VW marriage is going to produce a mid-size pickup that will take the place of the Ranger and go into production in 2022? Will this be elsewhere besides North America? If not, the current Ranger that is just now hitting showroom floors is going to have a very short production run.
January 22nd, 2019 at 3:13 pm
#16 The cost of material was aluminum body panels and had nothing to do with sensors lights or other items, it was strictly due to the fact that they cost more and received more damage than the steel body panels. The comparison was done on a 2014 steel bodied Ford F150 and a 2015 Aluminum bodied F150. They were ran into a barrier at the same speed and in the same manner. The cost comparison was just on body repair and is not to be confused with any other factors.
January 22nd, 2019 at 3:19 pm
https://www.youtube.com/watch?time_continue=45&v=tPkfC9POVfI
January 22nd, 2019 at 3:24 pm
17 Maybe the new FordsWagen will be a little more like an actual replacement for the old Ranger. I see one of those about every day, with a regular a cab, non-turbo 4 cylinder, and manual transmission. The new extended/crew cab only, 2.3 turbo only, automatic only Ranger doesn’t compete very directly with the old one. Probably the real competition for the old Ranger would be another old Ranger, S-10, or an older Tacoma.
January 22nd, 2019 at 4:04 pm
20) I owned a Amarok for a while. The current Amarok is about the size of the new ford ranger. I wonder if the co-development will leave us with 1 ranger for the US market and 1 for the rest of world. We would get the passenger/comfort model and the ROW would get a more commercial use focused model with heavier duty axles and frames (like the amarok currently has). Just something that seems to make the most sense for this partnership to me.
January 22nd, 2019 at 4:19 pm
I’m wondering if the Ford and VW versions of these vehicles will use the same engines, or if they’ll use engines that go with the badge. That would probably be the biggest deal with US bound pickups. Most Ranger buyers in the US probably wouldn’t want a VW engine, like most F-150 buyers probably wouldn’t want a Chevy V8 in their trucks.
January 22nd, 2019 at 4:41 pm
@21. Your vision parallels Toyota’s approach. They use two very similar, but regulatory unique pickups… Tacoma and HiLux.
January 22nd, 2019 at 5:08 pm
I remember Toyota briefly selling the HiLux, with that name, in the US, probably in the early ’70s. Then, they just called it Toyota pickup for a while, before the Tacoma name, for the North America-specific truck.
January 22nd, 2019 at 5:21 pm
Not being brand loyal,I like all 3 of the oem’s 1/2 ton trucks. However,if I were to buy one as it stands right now,it would be another Ram,hands down. More value for the buck,imho,and as a prospective buyer,my opinion counts ;}>
January 22nd, 2019 at 6:02 pm
25 Checking the web site, it looks like “crew cab” is the only way they sell the new Ram. I wonder if that will change. A regular cab version with the Hellcat engine would be an ideal sequel to the Dodge Ram SRT-10 a few years ago with the Viper engine.
January 22nd, 2019 at 6:03 pm
Yeah, things like that make no sense at all, but neither do pickup trucks in general, the way most are (not) used.
January 22nd, 2019 at 6:51 pm
“But Ford says that the decision to go with aluminum has proved to be a very profitable one.”
I would not expect Ford to say anything differently no matter if true or not.
January 22nd, 2019 at 7:16 pm
23 and 24: I had a 1970 Toyota HiLux. Was in the process of building a house in the Ozark Hills of Missouri (southwest of St. Louis) and wanted a small pickup that I could use to drive to work (McDonnell Douglass, St. Louis airport) economically, and could use it to carry small DIY items like paint and wallpaper supplies, windows, doors, lumber, and even a small load of gravel once (1,900 lbs. net!). Put 140,000 miles on it between Missouri and Michigan (dream job to work for a car company, LOL). Had many mechanical issues over the years, body, engine and transmission. At that time I test drove a Ford Falcon (just for the gas mileage for my commute) and the competing Datsun pickup. Toyota was uglier, but I liked the mechanicals better, although would be pretty mild today. Engine was a 1.9 liter with a blazing 108 bhp. I think the transmission was a 4 speed. Put a fiberglass top on the bed, 14″chrome steel wheels with G-70 radials (bolt pattern same as GM midsize), moved the park/turn signals to the bumper, big-rig side mirrors, AMFM radio and speakers upgrade, and vinyl white stripes down the sides. Another bad side: rusted badly the body panels front inner fenders to cab sheet metal. YouTube has videos if curious about what one looks like. Also, story at the time was rugged because of the terrible Japanese roads.
As for the current pickup choices, would love a Ram 1500 since the deals advertised are so good (odd with all the awards and acclaim), but way too big for my driveway. The Ford Ranger would be nice since there is a club-cab style available. My real desire would be the Jeep Gladiator, but probably too extremely expensive.
January 22nd, 2019 at 7:17 pm
Now that I see it, I should have gone with Douglas.
January 22nd, 2019 at 7:42 pm
28 Interesting. I remember the early Japanese imports, both cars and pickups, being bad with rust. My sister had an early ’70s Dodge Colt, (Mitsu) and her friend had an early ’70s Corolla. Both rusted worse than the domestics of the time, though they were bad compared with today’s cars.
January 23rd, 2019 at 6:55 am
We saw this glass tinting trick 20 years ago on a Ford Probe concept car. When is it going to put it into production??
January 23rd, 2019 at 8:29 am
31 Its a solution to a problem that no one really asked for. Seems like a very expensive solution to something that currently is being resolved with very cheap window tint. The sunroof I could see that being of biggest interest especially as they have grown in size with some almost full glass roofs. Last I heard that tinting was running about $100 per sqft so it would could make for an expensive sunroof.
January 23rd, 2019 at 8:50 am
#25 I also like all three brands of domestic trucks and shopped around last July. I knew I would most likely keep it 20 years like I did my last one. For that reason the Ford was out as I am skeptical of eco-boost engine lasting 20 years with over 250k miles without a turbo replacement. Yea I could have gotten the 5.0L but the pricing was not attractive at all.
Chevy’s small V8 5.3L has 40 less HP and also did not have much incentives.
So looking at the Ram the 5.7L Hemi had the same HP as the Ford but with 10 more ft-lbs of TQ a better ride and was offered well equipped big horn addition crew-cab 4×4 stickered at $42,600. I was able to lease for 2 years with only a grand down for $199 a month. At the end of the lease the buy out is $25,400 so I can buy it at the end of the lease and basically only paid $31,200 for the truck. GM and Ford offered no deal even close to that. They had deals that knocked off 3 to 4k off the sticker but that would still be $6000 more than the Ram. Just my personal experience but certainly made it hard to justify any other brand.
January 23rd, 2019 at 9:01 am
33 Is your truck the “old” one, and did you lease it after the new one hit the market? If so, that probably helped with the deal. That 2 year lease for $199/month, and the buyout price at the end, sounds like a very good deal. If you plan to buy it at the end, you shouldn’t need to worry about going over the mileage stated on the lease.