This is Autoline Daily reporting on the global automotive industry.
Hi I’m Sean McElroy. It’s February 18th, 2019. And now the news.
RIVIAN GETS $700 MILLION IN INVESTMENTS
Well you may already know this by now because the news was announced last Friday after we came out with Autoline Daily. Amazon and others are going to invest $700 million in Rivian. That’s a lot of money. Rivian got to where it is right now with an investment of $450 million, so imagine what it can do with a much bigger pile of cash. And we’re still waiting to see if GM is going to invest in the electric startup.
WHY GM/RIVIAN PARTNERSHIP MAKES SENSE
A lot of people have wondered why GM would make this investment. Here’s our Autoline Insight. Chevrolet has been massively unsuccessful trying to sell hybrid or electric cars. As good as the Volt and Bolt are, they’ve been sales flops. And Chevrolet truck owners couldn’t give a rip about electric pickups. So if GM does invest in Rivian, we believe Rivian could get access to GM’s parts bin. That would give GM more manufacturing scale with its EV skateboard and the parts and components specific to EVs. Remember, GM promised its EVs would be profitable in a few years and this could help them achieve that.
TOYOTA REVEALS NEW HIACE VAN
Toyota introduced a new version of its Hiace van which is well known in markets around the world. Two body types are available, a standard roof and a high roof. There are different seating configurations, with the capacity to carry up to 17 passengers. A cargo version is available but the van is mostly designed for people. It’s powered by either a 2.8L diesel or a 3.5L gasoline engine. It will initially launch in the Philippines, and then roll out to other markets afterwards. Interestingly, Toyota will continue selling the current model in Japan as is, due to market differences.
BUICK DROPS THE CASCADA
Soon the only convertibles you can buy from General Motors will be the Chevrolet Corvette and Camaro. Buick is dropping the Cascada and no one should be surprised. Opel, which is now part of Peugeot, killed off its version of the car late last year. Since it went on sale in the U.S. in 2016 only 17,000 Cascada’s were sold. Production of the LaCrosse is also scheduled to end next month, so that would leave the Regal as the only Buick passenger car currently planned for 2020. But the Regal is also made by Opel, so it’s only a matter of time before it goes away.
GMC REFRESHES THE ACADIA
GMC is updating the Acadia for the 2020 model year. As you can see, it’s bringing the styling more in line with the all-new Sierra pickup truck. Note the C-shaped lighting signature and extensions at the lower corners of the grille. A new AT4 trim is also available with a more off-road inspired design. While a 2.5L 4-cylinder and 3.6L V6 engine are still offered, a turbocharged 2.0L is now standard on SLT and Denali models. GMC estimates horsepower at 230 and torque at nearly 260 lb-ft. A 9-speed automatic transmission replaces a 6-speed as standard for all engines. The 2020 GMC Acadia goes on sale this fall.
GM OFFERS CANADIAN WORKERS BENEFITS
GM is going to close its assembly plant in Oshawa, Canada and while that sparked big protests, the workers are not exactly being left out in the cold. They are going to get lump sum payouts of $50-$60,000 per person, a voucher to buy a new car, extended benefits, free classes at local community colleges to get training for a new job and they get a full pension. Understandably, those workers are furious that GM is closing their plant and they believe they’re losing their jobs because GM is expanding production in Mexico. The Canadian union Unifor is calling for a boycott of all GM vehicles made in Mexico, pointing out that if the VIN starts with the number 3, that vehicle is made in Mexico. GM has a long history in Mexico. It began selling cars there in 1921 and began manufacturing vehicles there in 1937.
DEALERS BLAST TRUMP OVER TARIFFS
The Commerce Department sent its report to President Trump last night about its investigation into whether imported vehicles pose a national security threat and if tariffs should be slapped on imported cars. The report isn’t public yet, but that didn’t stop car dealers from blasting it. The American International Automobile Dealers Association says tariffs will cost jobs and lead to price increases. The Center for Automotive Research released a report saying a 25% import tariff will cost nearly 367,000 jobs, boost car prices by an average of $2,700 and reduce new car sales by 1.3 million units. Auto dealers by and large support the President but that won’t be the case if he follows through on the tariffs. President Trump has 90 days to act on the recommendations of the report. Here’s our Autoline Insight. We think he’s going to slap on those tariffs.
HOW CADILLAC XT6 DIFFERS FROM GM’S OTHER CUVs
There’s a perception that the all-new Cadillac XT6 is just a rebadged version of the Buick Enclave or Chevrolet Traverse. But it’s actually quite different. On last week’s Autoline After Hours, we were joined by John Plonka, the Chief Engineer of the XT6 and he explained the different changes that they made to the XT6.
(The AAH preview is only available in the video version of today’s show.)
For a deeper dive into the all-new XT6, 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 and please join us again tomorrow.
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Comments (25)
February 18th, 2019 at 12:11 pm
I like the new face of the GMC Acadia.
I’ve probably rode in one of those Toyota Hiace vans (obviously not the new one) on a Caribbean cruise excursion (I’m thinking). Other than it moved the people not much else I gleaned from the experience.
I’m a bit confused with these plant closures; it was just last week’s “Autoline This Week” in which they said how hard it was to get workers.
February 18th, 2019 at 12:18 pm
On the XT6. If you watched the whole show, the guest had to admit how many things “Cadillac” did not make it into the new XT6. Example, Super-Cruise. So I think there are more things in common with the other GM SUVs than different.
February 18th, 2019 at 12:41 pm
Re the Volt, the Bolt and GM-Amazon’s Rivian partnership: The Bolt and the Volt were not good enough, obviously. In addition, few green Buyers would give the mainstream EV makers the time of day. Even Toyota’s fotrmer huge hit the prius has fizzled badly, despite every generation being 10% better than the prior one. From 20,000 a month, prius has plummeted to a disastrous 2,000 plus change (for the whole prius family no less) in jan.
GM and Amazon would have done much better if they struck a deal with the (by far) dominant EV maker, Tesla. As it is, I am not optimistic that they will see one dime of their $700,000,000 ever again.
Acadia refresh: Bad old GM interiors… really in poor taste. Thick pieces of plastic painted silver, (why? will the gullible buyers believe it is a metal?) and tiny slivers of what looks like really bad fake wood. Or real wood looking like fake wood? Not good, for the lofty prices buyers pay for these things. I am actually amazed GM has been so successful with SUVs (it sold a million of them last year), given their poor interiors and lofty prices.
I doubt if Trump will slap the tariffs, but even if he does, I expect negotiations that will have far better results. And the Euro and Japanese makers always have the option to make their remaining models they sell in the US in their existing or expanded US factories in Ohio, Alabama, Tenessee, and all over the place.
After listening to the XT6 presentation, I am actually less convinced that this is the “new flagship” as Motor Trend, if I remember well, pronounced it. Seems there is not a whole lot of differentiation between the XT6 and its clones, and the panel did a good job challenging the XT6 person in AAH.
February 18th, 2019 at 12:43 pm
#1. Chuck, most of those GM workers are getting transfers to other GM facilities. Of the 2,800 hourly workers losing their jobs at the plants that are getting closed, GM says it has jobs for 2,700 of them at other plants. Some will choose not to transfer and others will retire, but GM hopes to keep as many of them as it can.
February 18th, 2019 at 1:43 pm
I was under the impression that the United States was still the most powerful nation in the world.
I thought national security was concerned with armaments, computer technology, planes and ships and military personnel, even spies.
But if there’s national security worries about steel and aluminum from close allies and now even economy cars, things must have dratically changed. Such a fragile superpower after all. Sad.
February 18th, 2019 at 1:45 pm
I don’t think it will make much difference if tariffs are imposed or not. Almost all manufacturers make vehicles in the US. It might hurt GM and Ford most(IMO)because they would be doing the importing of cars; That is, what few models that remain.
I like the exterior of the Acadia, but when I looked inside, then the sticker price it was obvious the Acadia unrefined and over priced.
February 18th, 2019 at 2:07 pm
Thanks John for the insight; that certainly sounds better than how some have reported all these lost jobs (so actually, not so much).
The U.S. may soon yield if it hasn’t already done so the most powerful nation over to China. One of the problems that the U.S. faces is that we have been appointed (by the world) as the world police and that costs a lot of money that we don’t have. How much benevolence do we see from China (not much); their money stays for their own gain. I know that is an over simplification (but you get my drift).
The XT6 is a solid introduction even though it doesn’t break too much new ground; it is a contender. Cadillac could (and should have) done better but the lack of Supercruise is just a temporary omission. It will be included in the next XT4 and soon for the XT6. Yes, I’m conjecturing but that is what I gleaned from the interview.
February 18th, 2019 at 2:17 pm
Trump’s saying the importing of cars is a security threat is more Trump BS, like saying a need for a wall from Brownsville to San Diego is a national emergency. Maybe I need to buy a Porsche Cayman now, before the price goes up.
February 18th, 2019 at 2:44 pm
i noticed 6 bolt wheels on that Caddy,is 6 fairly common and I’ve just not noticed before?
February 18th, 2019 at 3:15 pm
9 I’ve noticed 6 on either a Traverse or Enclave. It must be mainly for show, as a heavy, 707 hp Challenger or Charger Hellcat gets by with 5.
February 18th, 2019 at 3:35 pm
I watched the AAH episode which featured the Cadillac XT6 chief engineer. As I recall, his main defense for the Underwhelming style was that it researched well will the target customer. That translates into “it’s inoffensive”.
The challenge with market research is how you react to the things you hear. As Henry Ford once said, “if I listened to the customer, they just wanted a faster horse”. Greatness comes from exploring the underlying, unexpressed wants.
The XT6 Chief also said they picked the XT5/Acadia platform to provide a great ride/handling experience (presumably better than the larger Traverse/Enclave), yet he also said 2nd and 3rd row space and cargo space were a top priority. Given the slight contradiction of attribute priorities, I suspect available/open capacity was probably the key determinant of the XT6 platform. Can someone shed more light on this?
February 18th, 2019 at 3:42 pm
11) The XT5 is on the short wheel base C1XX platform. That is the same as the Acadia. The XT6 is on the Long Wheel Base C1XX which the Traverse and Enclave use. So it will offer more room than the XT5 but not as much as the soon to be released Escalade when it debuts on the new T1XX platform.
February 18th, 2019 at 4:36 pm
Lets judge the XT6 after a year of sales in China & US.
GM should release EV trucks under the HUMMER brand, as a subdivision of Cadillac.
Silverado & Acadia should dump the 2.5. Turbo has a good marketing image
February 18th, 2019 at 4:51 pm
My wife is interested in buying a new small or mid-sized Lincoln or Caddy, so we went comparing over the weekend. In as much as I like the XT5, we were more impressed with the Lincolns. When comparing the Nautilus with the six cyl. which had all wheel drive to the comparable Caddy, the Lincoln not only felt better to drive, had better acceleration and over-all handling, it was also less expensive by a good margin. The interior had a lot of soft touches that were lacking on the Caddy. I may have been more impressed with both Caddy’s if the seats were not so flat and hard. Never the less I still like both brands but will bet the wife will opt for the Lincoln.
February 18th, 2019 at 4:54 pm
Interesting perspective. HUMMER was the one brand I was glad to see go. I found the militeristic trucks with 3 foot high bumpers designed to kill people in other vehicles rather disgusting. Yeah, that’s why there are different vehicles on the market, for people with different tastes.
February 18th, 2019 at 5:01 pm
14 Did you check out X3, GLC, or any Asian “premium” CUVs?
February 18th, 2019 at 5:44 pm
Lots to say about today’s Autoline Daily. I tried to purchase a Volt from a local Chevrolet dealer it was almost impossible to get the salesperson to sell me one, all they wanted to do was move me to another model. I finally gave up on Chevy and purchased a Toyota Prius Prime. The new Caddy is a poor competitor to the any other Premium CUV, why didn’t GM build a new platform for the XT6 and then move it across to the Buick and Chevy rather than using an older Chevy/Buick platform and trying to make it into a “Premium” vehicle. Another mistake from a US manufacturer trying to utilize old technology in a 21st century world.
February 18th, 2019 at 5:58 pm
Kit, many neighbors have one of these Asian brands and I have been in them all. They tend to have better contoured seats and leathers, drive and handle really well but they are not very roomy and seems they are in service too often and cost of repairs are higher than my perspective as reasonable. I do like the Lexus best of the bunch.. a lot actually. We’ll buy a Linc. or Caddy because I get GM discounts and my father-in-law gets Ford. Unfortunately, the only way to get the best discounts on a GM product is based upon thee added packages offered. Now days vehicles are pretty well loaded with most of what is needed. If you desire something more it requires you to buy another package that always cost a thousand or two more. this is not for me! I don’t need heated or rain sensing wipers, 30 speakers, or any of the toys and gadgets that take the pleasure out of driving and being in control.
My biggest peeve is with all the 4 cyl.’s being standard on most everything. IMO, I am convinced a 6 or 8 cyl. gets just as good overall mpg’s overall and lasts much longer.
I also wish vent windows would return cuz I am not fond of air conditioning unless necessary. I like radio’s with knobs so I can tune my own stations and feel almost positive if manufactures rid themselves of most/all electronic safety/driving aids, it would lessen total weight, increase mpg, severely reduce recalls and make driving as it should be… a privilege yet fun to be in total control and fun!
February 18th, 2019 at 6:14 pm
After too many years, my “69″MGC will finally be restored this Spring. Though it has a 6 cyl., it is as basic as driving gets. But isn’t this what driving is all about and should be? Only you old guys know what it is like to have complete control. For sure, many creature comforts, like cruse control, instant start and the like spoil us, but as long as there are guys like me the youth will never know what it is like to experience true driving pleasure.
February 18th, 2019 at 6:59 pm
18 A neighbor has an Acura CUV, I think MDX, 2006 or so, and has had electronics and suspension problems, but the powertrain has done well. As far as four cylinder engines not lasting as long as engines with more cylinders, I don’t think it’s that simple. My friend’s “cheap Chevy,” actually badged Pontiac, is going strong at 240K miles with its 2.2 liter pushrod four. Today’s turbos would be stressed more, but might be well enough designed to take it. I guess time will tell.
I had one of the last cars with vent windows sold in the US, a 2006 VW Golf Cabriolet.
Your MGC sounds like a fun car. Years ago, a friend had an MGC GT, which was a cool car. There probably weren’t many of those.
February 18th, 2019 at 8:43 pm
The Cadillac XT’s ARE on unique platforms and only initially shared with the GMC Acadia and now with the upcoming Chevy Blazer. What I think Cadillac offers above and beyond other GM offerings is an upscale material used, as in glass, plastics and trim material. Also offered in Cadillac IMO is a more timelessness in stying. Look at Caddy from two or three model cycles and for the most part styling is still relevant. The DTS and the STS still look pretty darn good; this is seen in most of the premium brands, i.e., BMW, Jag, Merc, etc.
February 18th, 2019 at 8:52 pm
21 To me, the Cadillac styling theme has aged well. It started with the 1st generation CTS, which replaced the ill advised Catera in about 2002.
As far as crossover SUVs, I don’t buy them, but it I did, it would probably be an X3 or GLC, because you can get them RWD.
February 19th, 2019 at 3:58 am
The defence of GM moving jobs to Mexico, by citing how ‘long’ they’ve been building there, is frankly pathetic.
GM is salesproof to me. I’m not even interested in buying a used one – even if it was originally built in US or Canada. Their reputation is that damaged.
Selling out the Canadian and US citizens who literally GAVE GM money to survive, is a slap in the face, that should not be forgotten. The departure packages are for the most part, a joke. Another insult to the people to the folks in Oshawa that made that plant one of the literally best assembly plants in the world.
With even more job losses and GM plant closures going on in the US, AND the expansion of GM Mexico’s plants, I have no idea why anyone north of the Rio Grande, would ever want to buy one. They took your tax money, and screwed US workers too!
February 19th, 2019 at 7:06 am
The 2.0T option is welcomed choice for turbo-4 junky like me with a 3-row. The Traverse RS 2.0T is too big based on out current 2017 Acadia Limited and the smaller Acadia might be just right.
February 19th, 2019 at 7:50 am
My ’89 minivan had a turbo 4 long before they became so popular. It has a feature that is not very popular these days, a manual transmission.