This is Autoline Daily reporting on the global automotive industry.
FCA EXPANDS JEEP AND RAM PRODUCTION
It’s no secret that the heart and soul of FCA is now the Jeep and Ram brands. And the company just announced it’s going to invest $4.5 billion to upgrade five existing plants in Michigan and build a new factory in the city of Detroit, to boost production of its trucks and SUVs. The expanded production will include two new Jeep models as well as plug-in hybrid versions of current models. FCA says the plants will also have the flexibility to build battery electric models in the future. The investment is expected to create 6,500 new jobs.
GM SUED BY UAW
And while FCA is making plans to expand production, General Motors is being sued by the UAW over its decision to idle three of its plants. The lawsuit, filed yesterday in Ohio, accuses the automaker of violating the terms of its 2015 contract which is set to expire later this year. The Detroit News reports that the union wants to keep the plants up and running at least until the deal runs out in September. But as of now, the plants are scheduled to stop production over the next few months. Even if the UAW wins this suit, the long-term fate of the plants will be determined during contract negotiations later this year.
Don’t forget to join us for Autoline After Hours this week. Our special guest is Bob Krempke, who’s a historian of the Ford Motor Company. If you have any questions, send them our way to viewermail@autoline.tv or message us on social media. That’s this Thursday at 3PM eastern time.
VW CREATES JETTA BRAND IN CHINA
The Volkswagen Jetta is one the most popular cars in China, that’s why the company is creating a new entry level brand in the country called Jetta. The lineup will include one sedan and two SUVs, which VW will produce with its joint venture partner FAW. Entry-level vehicles account for about one-third of the Chinese market and VW hopes to grab a slice of that with the new brand. Jetta will launch in the third quarter of this year.
NISSAN TEASES IMQ CONCEPT
At the Detroit auto show Nissan showed off the IMs concept, what it called an elevated sports sedan and soon in Geneva it will reveal the IMQ. It’s a crossover concept that could hint at future design.
HONDA REVEALS E PROTOTYPE
And speaking of concepts, check it out! Here it is, the Honda e Prototype. It’s a cute little electric car, but I wish styling had stayed truer to the original concept. There’s no brow above the headlights, the wheel arches were shrunk down, a rear door has been added and the roof area is more rounded off. But while the styling is a bit of a letdown, the interior was a surprise. It’s minimalistic, but futuristic at the same time. And check out that huge screen that stretches across the dashboard. Honda says the rear-wheel drive EV will have over 200 km or about 125 miles of range.
POLESTAR 2 TO TAKE ON TESLA MODEL 3
Volvo’s premium brand, Polestar, just revealed its first all-electric sedan to take on the Tesla Model 3. The Polestar 2 features a 78-kWh battery pack and is powered by two electric motors, which helps it move from 0 to 100 km/h in less than 5 seconds. Its range is expected to be about 275 miles based on the EPA test cycle. The Polestar 2 will be built in China for global markets starting in early 2020. And it will initially launch in the U.S., Canada, China and select European markets. Like all Polestar vehicles, you can only order it online and the launch version will carry a starting price of $63,000 without incentives.
JAGUAR UNVEILS NEW XE
Jaguar revealed the new version of the XE. The styling has been updated with new LED head and taillights but that’s about the biggest change to its styling. On the inside, it now features the same infotainment system and driver display that’s in the I-Pace. It also uses artificial intelligence to learn preferences of individual drivers to automatically adjust the seats, mirrors, audio and climate control settings. The car is powered by a range of gasoline and diesel engines and is available in all or rear-wheel drive. The new XE is available to order now in the UK and carries are starting price of nearly 34,000 pounds or about $45,000.
NEW MERCEDES GLE GETS AMG TREATMENT
AMG got its hands on the new Mercedes GLE. At the heart of the SUV is a twin-turbocharged 3.0L V6 engine that produces nearly 430-horsepower. It gets mated to all-wheel drive and a 9-speed transmission. 0 to 60 can be done in 5.2-seconds. The GLE 53 will also feature a 48-volt mild hybrid system, which allows for a boost function, energy recovery and stop/start functionality. As you would expect, there’s a number of unique touches, like red interior accents, but the easiest way to spot the AMG version is the vertical slats in the grille. The GLE 53 will go on sale in the U.S. late next year.
But that’s it for today, thanks for watching and please join us again tomorrow.
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Comments (38)
February 27th, 2019 at 12:16 pm
Kinda looks like the Honda E is a retro look at the 1970′s Civic.
February 27th, 2019 at 12:17 pm
Sean, perhaps you would be less disappointed with the Honda e prototype if if had more expressive (3-dimensional) wheels.
February 27th, 2019 at 12:19 pm
Sounds like another FCA “shell game” for the UAW workers with an “add and cancel” for workers in their plants-new and old.
February 27th, 2019 at 12:20 pm
I’m really not a Tesla fan but I am upfront enough to know that Tesla has set the standard, and with all these new electric vehicles aiming at Tesla, they just aren’t moving the bar (and some don’t even match what has been available already). If you want to beat Tesla you’ve got to beat Tesla (not redundant, just using ‘beat’ in two meaning). Come on, raise the bar; then these ‘electrics’ might have an unaided place in the market.
February 27th, 2019 at 12:21 pm
Would be crazy to see Ram take the top selling truck position, They offer a great truck now with best pricing from what I have seen. Not sure they can topple Ford or even Chevy/GMC combined but they have been leveling the playing field little by little.
February 27th, 2019 at 12:24 pm
I will not be buying or leasing another GM vehicles in the future due to GM’s morally bankrupt behavior towards its employee and the US Taxpayers that bailed it out!
Best upon FCA-Jeep-Ram behavior of creating jobs and investing in US manufacturing, I will buy or lease a new Jeep in the near future.
February 27th, 2019 at 12:24 pm
Is the base model Polestar 2 going to be a stripper model?
February 27th, 2019 at 12:32 pm
All the OEMs are wasting tons of R&D and money on stupid looking EVS! The Honda E Prototype is a clear example of wasted resources on something that will not sell in the US Market!
Is it so hard to electrify an existing model in its product portfolio? This too me is more important than wasting time & money on stupid electric prototype that will not sell! Honda give up an Electric CRV with 250 miles of range for $35K and it will sell.
February 27th, 2019 at 12:33 pm
#4 Your dead on Chuck. With Tesla making their technology available to anyone that wants it I’m not sure why its taking the other automakers so long to replicate if not improve upon what has already been done. They should be able to offer a vehicle with equivalent range and performance and for less money. Tesla developed everything for their cars from the ground up starting from zero. All the other automakers have plenty of components they can pull from the shelves without adding R&D costs and develop a really good EV. Why that’s not been done baffles me.
Even better would be the maker that develops a car that can be bought in pure EV or ICE and let some of the ICE sales help offset the cost of development for a EV only vehicle.
I could see many people willing to buy a Tesla model S with a ICE powertrain. Its an attractive car even without the merits of being an EV.
February 27th, 2019 at 12:49 pm
8 Honda will not be selling an electric CR-V with 250 mile range for $35K any time soon, because they would lose about $15-20K on each one. It takes a lot of expensive batteries to move a tall, draggy vehicle that far.
I agree that the E prototype would not be a hot seller in the US, but it might be in other markets. Actually, it might sell in the US, if the price is low enough.
February 27th, 2019 at 12:50 pm
“POLESTAR 2 TO TAKE ON (sic) TESLA MODEL 3
Volvo’s premium brand, Polestar, just revealed its first all-electric sedan to take on the Tesla Model 3…”
Let’s get serious here. There is NO chance in Hell that the Polestar 2 will even make a tiny little dent on Model 3 sales.
Those of us here who know the numbers, both the stellar, humongous Model 3 sales, which will be 30,000 a MONTH, and the pitiful, depressing sales of all Volvo models, who, all of them TOGETHER, barely sell 7,000 a month, know that the Polestar 2, whether it succeeds (define success) or fails, will never be able to even make a tiny dent on Model 3 sales.
Still, imitation is the sincerest form of flattery. And the same way 2 years ago, everybody and his mother-in-law were developing and selling “Series 3 Fighters”, they now try to develop “Model 3 fighters”.
Every single 3 Series fighter failed, but the Model 3 fighters will fail far more miserably. Those of us who know the numbers are quite confident of that.
But kudos to Chinese Geely-VOlvo for grabbing publicity every day, despite their laughable 0.5% market share in the US. They should give their press guy a big raise.
February 27th, 2019 at 1:06 pm
I don’t think a car has to be vastly superior to Tesla to have a chance in the market. Close in performance and features but from a traditional manufacturer would be all it takes. There is tremendous hype around Tesla and that turns off people as much as it attracts them. Since I buy cars one at a time, I select them for personal appeal, not monthly sales.
February 27th, 2019 at 1:07 pm
I like the mininalist clean lines of the Honda E (a bit retro too, that should grab some price premium) and its interior. IF the 125 mile range is not measured by the pie-in- the sky overseas system but it is EPA 125, it would make a good commuter car in dense traffic big city areas. Of course if they ask $30k for it, nobody will buy it.
February 27th, 2019 at 1:13 pm
12 This is not about how one specific individual makes car buying decisions. My comment 11, which obviously caused your comment, was looking at the big picture from the point of view of the AUTOMAKERS in the Auto Industry. And the fact remains that, Near-Luxury Maker Volvo, which has a bad habit of trying to sell tiny coffeemaker I4 2-liter wagons and sedans for … $90k, not surprisingly, has a PITIFUL, as I already mentioned, 0.5% market share in the US.
I have been inside VOlvos of recent vintage and understand why. They are no better than Chevys and Fusions, but ask for Mercedes prices. In fact, even Toyotas and Hondas have higher quality interiors, and vastly better reliability.
I doubt VOlvo makes one dime in the US market, and that even before the Polestar. Why it has not left, as did many, many import makers over the years, (better: not left YET) has more to do with the Chinese owners “losing face” than any success in the markets.
February 27th, 2019 at 1:16 pm
13 The moderate range means maybe a 25-30 kWh battery, which keeps the cost down. At a price of ~$20K or a little over, it looks appealing, and it’s even rear drive.
February 27th, 2019 at 1:19 pm
Jaguar’s “luxurious” new interior? Really? It does not have even ONE square inch of wood veneer, but it does have a ton of plastics. That is not real luxury.
February 27th, 2019 at 1:24 pm
#4 & #9: I agree with both of you! Why bigger OEM’s can’t “beat” or match Tesla, when, as I understand, their tech is open source, has me scratching my head. One thing I would say in their defence is that, with Tesla starting with a clean sheet and a clear focus, they could engineer EVERYTHING from the ground up for toward their EV end goal. While the OEM’s could grab things off the shelf, they still may need to retrofit them for EV purposes. So it may be, perhaps in some cases, easier to have just built components, if not a whole architecture/platform from scratch. Yet, again to your point, it would seem that with the tech open sourced, the information is out there. So why they have caught up with Tesla, or at least be closer to them then it seems They are? That being said, IMHO, with the Legacy costs of existing OEM’s, the fact that Tesla’s info is readily available, that may serve to do more to help other new startups as supposed to established manufacturers. The thing is, the biggest demerit with Tesla products, is not the electronics and the chassis of their vehicles, but questionable material choices and fit and finish. Believe me Tesla fans, I’m not taking a shot at them, but repeating what has been said in the media regarding their products, which are, over all very, very good. The first company that can, at the very least, match Tesla on the electronics and vehicle Dynamics side, as well as match the industry standard on perceived quality and fit and finish, that company would find itself in a very good position indeed!
February 27th, 2019 at 1:28 pm
I like the looks of the Honda E but as I’ve mentioned here before the US market expects a premium car with that premium price. So while most EVs are still in that premium price range you are going to find very few buyers willing to spend premium prices for an econobox, regardless that it is an EV. Tesla has the right idea and offers a stylish attractive car with great performance and can ask the kind of prices its getting. Even at thousands less then a model 3 I doubt many people would chose the Honda E over the 3.
February 27th, 2019 at 1:28 pm
#7 == EXCELLENT comment!
That Honda might sell well in Japan & China (especially if made in China).
In the US it needs clever (early Mini/Hummer) marketing to become popular but likely only for 1 year. Could it turn into another Kia Soul?
February 27th, 2019 at 1:34 pm
It seems that no one has even tried to compete with Tesla in a serious way, with rear drive and AWD electric cars with lots of power, great handling, and in the case of the Model S, great appearance. Yes, there is the cult-like following, but except for some quality issues, the products are great.
Actually, that Honda, if it makes it to production, and the price is right, would be a very appealing commuter car for me, if I had a place to charge it.
February 27th, 2019 at 1:39 pm
18 The Honda would need to be LOTS of thousands less than the Model 3 to sell well, with half the range and, presumably, less performance. I haven’t heard any price projections. Are there any price projections yet?
February 27th, 2019 at 1:39 pm
18 I don’t think anybody ever thought that the Honda E will compete with any Tesla model, which are far bigger and pricier. Also I did not see a number for the price, I said $30k nobody would buy it, but Kit expected it would sell for about $20k. The E is even smaller than the Bolt or Leaf.
February 27th, 2019 at 1:49 pm
How does the new Tesla killer, Polestar 2, stack up against the previous Tesla killer, the I-Pace?
Insideevs reports 210 January I-Pace sales. My understanding is that is less than one fourth of one day of Tesla production.
BTW, the Tesla SHORTs are claiming the USA market for Teslas is saturated which has forced Tesla to sell cars in Europe and Asia. If accurate, how much market share will the Polestar 2 have left over from the I-Pace?
February 27th, 2019 at 1:55 pm
23 all true. But remember the Polestar 2 will also be sold in CHina, where it is actually made. And even if it does not sell one lousy unit in the US market (probably a good approximation, despite the $7,500 tax credit it will have, which the Model 3 and the Bolt do not have now), it will sell every unit it makes in Shanghai, Beiging and the other 4 huge cities in China, where if you buy an ICE car, you pay $14,000 or $15,000 for the license fee, while if you buy an EV, you pay $0.00.
February 27th, 2019 at 1:56 pm
#4 & #9,
For over a hundred years there have been cars who “set the bar” and they are now gone or outsold or both. Any electric vehicle with similar range, and with close or better quality with the right price point will be sold. Tesla will Get to compete like any other company. And in the end I predict there will be terrible but cheap electrics that are affordable; And high quality / high priced electric vehicles. It’s just a product. People can only buy what they can afford.
February 27th, 2019 at 3:54 pm
22 I was not implying the Honda E would compete with the model 3. Just pointing out that Honda has made the same mistake as GM/Nissan/Toyota and basically all current EVs. They introduce some tiny econobox often with funky designs to emphasize that its different and green and throw a hefty price on it and wonder why it doesn’t sell. Honda has done the same thing and will most likely fail like the other before them. Tesla came out with the right combination and that Polestar is the first offering I’ve seen that follows that successful path. Although I don’t think Polestar has a chance to challenge Tesla for all the reasons already mentioned.
February 27th, 2019 at 4:02 pm
23 Does anyone know if orders for Tesla model 3′s are still coming in at the rate they were before. Would be interesting to know, where they stand on filling all the back orders they had and what will happen once that backlog is filled. Will the sales continue at a decent but reduced pace or drop off like a rock?
February 27th, 2019 at 4:19 pm
26 I think the Honda could do well, at the right price. The closest target would be Leaf, which has an MSRP of $30K. The Honda should be cheaper to make because it will have less range and, I think is smaller, meaning less battery, a big cost with an EV. Also, being rear drive, rear motor, the powertrain is a little simpler. To my knowledge, buyers would have the whole $7500 tax credit available, though I suspect many potential buyers wouldn’t be able to use it.
Anyway, I find the car interesting, in a good way. It’s small hatch that looks a bit like a Mini, or a Mk 1 Golf, and adding to the appeal, it’s rear drive. No torque steer, even if it has the power to perform really well, and it should be fun. No, it won’t be a car for people in the “snow belt” who can’t drive very well.
February 27th, 2019 at 4:30 pm
27 The sales must be getting more “caught up,” because you can now order a Model 3 with a price of $42,900, for February delivery in Florida. That’s getting a lot closer to that advertised $35K. The car for $42.9K is Model T color, nothing but black, and doesn’t have any options, like autopilot, and has the mid-range battery, with an EPA range of 264 miles.
https://3.tesla.com/model3/design?#payment
February 27th, 2019 at 5:31 pm
29 I assume the Tesla site meant February 2019, but they will need to update the site soon.
February 27th, 2019 at 6:14 pm
In the US and all other places where charging infrastructure is laggard would always buy a Tesla instead of anything else because of their top notch supercharger infrastructure. You need a crazy dude with huge balls to spend the money needed for decent and reliable infrastructure to support your products, the only one to date is the Twitter troubled guy in California.
February 27th, 2019 at 6:52 pm
31 If you want to use an EV for “road trips,” yeah, Tesla is the only way to go. Most EV use, though, is for commuting, and for other trips within range of charging at home or work.
February 28th, 2019 at 6:48 am
This Honda E seems more and more interesting to me, goods styling, good quality interior, RWD, of course depending on its price, I could in fact use two of them, one here and one in the summer home. The 125 mile range is just perfect for me around town, not only does it easily cover all the commuting here, it also can cover most of my weekend trips nearby with only overnight slow charging. Overseas, the small dimensions will be a huge advantage, compared to my E320 diesel, whenever I do the 60-80 mile round trip downtown and errands, the downtown center is really tight both length and witdh wise for the Merc. Plus diesel is not so cheap any more, at 1.3 euros a liter, more than $5 a gallon,
AND Big cities are banning them from the downtown areas. A friend in Belgium who has a 1994 Bentley told me he has to pay $450 (350 euro) every time he enters Brussels, but my more recent 2008 E class would not pay anything dfor the time being, if I ever took it there.
February 28th, 2019 at 8:15 am
https://www.topgear.com/car-news/electric/honda-urban-ev-alive-e-prototype
No good news here. Top gear speculates the price of this tiny Honda E (it is 4 inches shorter than even the tiny Honda Fit hatch!!!) will be between 25 and 30k POUNDS. Even if this is $ in the US, too expensive for too little a car. Maybe if used prices depreciate considerably, get a couple of them off-lease for $12k each.
February 28th, 2019 at 10:16 am
34 A 5 door VW Golf GTi is 31,650 pounds in the UK, and $27,595 in the US. The VAT seems to more than make up for the exchange rate. Anyway, time will tell about the pricing of the Honda. I’m hoping it ends up at the low end of today’s guesses.
February 28th, 2019 at 11:06 am
35 Kit aside from your personal preference of vehicles small hatches / cars in general are not selling in the US market and to launch an EV into yet another diminishing market seems foolish. I personally like the looks of the Honda E and think it would be fun to own, (if its quick). However at 30k that’s an expensive toy. I guess like buying a Harley. But they will be lucky to see the sales Harley has.
The big problem with EVs beside the range, charging networks and cost is they don’t seem to perform very well in the vehicles that US consumers want. Build a Chevy Tahoe with 300 mile range at the same price as a ICE and it will probably sell quite well. No one (not even Tesla can do that yet).
February 28th, 2019 at 11:23 am
36 The Honda E is a concept at this time, if they make it, it may sell well in Europe and Japan but not in the US, even if they price it at the low end of Top Gear’s 25-30k Pounds ($32-40k!).
The car is cute but not really sleek. At first it reminded me of our 3 door, 1.35lt 75 hp Civic HAtch we had in out summer home from new in 1991 until it was totaled in 2016, but that one was much lower and looked wider and more sporty and stylish. Plus it was very lightweight (between a Smart and a Miata) and quick around town, even if its top speed was only 110 mph.
February 28th, 2019 at 11:41 am
37 Based on the prices of a VW GTi in the UK vs US, (#35), Top Gear’s high end estimate would equate to $26,156, US, and their low end estimate would equate to $21,800. I didn’t try to determine differences in standard equipment of the VW between the UK and US, but they are probably similar. The powertrain is definitely similar.
At $22K, I’d consider buying the Honda to leave in Indiana, where I spend about 5 months of the year, and would have a place to charge it at home. I’d probably have a Bolt already, if it cost $25K rather than $37K.