AD #2577 – Ford to Profit From Plant Transformation, All-New Venue is Hyundai’s Smallest CUV, LA Auto Show Could Move to March
April 18th, 2019 at 11:57am
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Runtime: 8:09
0:06 Ford & Mahindra Jointly Developing SUV
0:34 Ford to Profit from Plant Transformation
1:54 New Subaru Outback
2:32 Kia HabaNiro Concept
3:13 Kia Stinger Limited Edition Model
3:49 Mazda Diesel Finally Coming to U.S.
5:07 All-New Hyundai Venue
5:54 New Mercedes GLS Even Bigger
6:57 LA Auto Show Could Move to March
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This is Autoline Daily reporting on the global automotive industry.
FORD & MAHINDRA EXPAND PARTNERSHIP
Ford and Indian automaker Mahindra, announced they will jointly develop a mid-size SUV for India and other emerging markets. To help save costs, the SUV will be built on a Mahindra platform and use a Mahindra powertrain. This is part of a broader strategic alliance the two automakers formed back in 2017. Last year, they also agreed to collaborate on powertrains and connected car technology.
FORD TO PROFIT FROM PLANT TRANSFORMATION
And speaking of Ford, it says its decision to pretty much abandon the passenger car market in the U.S. to focus on trucks and SUVs, will pay off for the company. Bloomberg reports that by 2021, Ford will earn $1 billion more in earnings before interest and taxes from its Michigan Assembly Plant than it did two years ago. The factory used to build the Focus and C-Max but the company converted it to produce the new Ranger and the new Bronco starting next year. Between 2019 and 2023, Ford plans to devote 91% of its capital expenditure to developing trucks and SUVs because of the profit it can generate from those vehicles.
And be sure to join us for Autoline After Hours this afternoon. John and Gary will be talking about the latest reveals from the New York Auto Show, so find out what they think at 3PM eastern time on our website, Autoline.tv or you can watch on our YouTube channel.
And speaking of New York, we’ll take a look at some more reveals from the show, right after this..
NEW SUBARU OUTBACK TAKES CENTER STAGE
Subaru unveiled the new Outback, which features updated styling. Two powertrains are available, it comes standard with a 2.5L naturally aspirated Boxer engine, that features 90% new parts and a 2.4L turbo Boxer that cranks out 260 horsepower is also available. It’s the first time since 2009, the Outback is offered with a turbo. Both engines are mated to a CVT. All trims come standard with its Eyesight suite of safety technology. The new Outback hits dealerships this fall.
HABANIRO IS KIA’S SPICY NEW CONCEPT
And check out this new concept from Kia called the HabaNiro. It’s a fully electric, four-seater that has a range of 300 miles. And as you can see it has butterfly wing doors. It’s equipped with Level 5 autonomy, which is why it has a spacious interior that’s been optimized for ride sharing. It also features the company’s READ system it debuted at CES, which analyzes the driver’s emotional state to adjust settings in the car. And as hard as it may seem Kia says don’t bet against ever seeing this concept in production. That would be cool if true, but all we have to say is we’ll believe it when we see it.
KIA STINGER GETS LIMITED EDITION MODEL
Kia also introduced a special edition of the Stinger called the GTS. The vehicle features a newly developed dynamic all-wheel-drive system, a new bright orange paint color and carbon fiber parts. The car is powered by the same 3.3L V6 turbo that’s used in the Stinger GT. But if you want the new GTS, you’ll have to act quick, since the company will only make 800 of them. Pricing for rear-drive models starts at $44,000, while all-wheel-drive models start at $46,500.
MAZDA DIESEL FINALLY COMING TO U.S.
Well it’s finally here. After a seemingly endless amount of delays, Mazda is bringing its Skyactiv diesel to the U.S. in the CX-5 Signature model. The 2.2L diesel is expected to crank out 168 horsepower, 260 lb-ft of torque and fuel economy is estimated at 28 MPG combined. As a comparison, a 2WD CX-5 with the naturally aspirated 2.5L gas engine is rated at 28 MPG combined as well and the 2.5L turbo gets 25 MPG combined. The diesel is also a bit pricey, about $4,000 more than the gasoline powered CX-5’s. But if you’re still interested, Mazda is taking pre-orders for the diesel powered CX-5 now. And it also says it will offer the engine in the Mazda6.
Stay tuned because, we’ll have more auto show news, right after this.
HYUNDAI REVEALS ITS SMALLEST UTILITY
Small utility vehicles are hot sellers right now and Hyundai has introduced the all-new Venue to the segment. It’s quite a bit smaller than the Kona and will be the most affordable utility vehicle in Hyundai’s lineup. In the U.S., power will come from a Dual Port Fuel Injection 1.6L 4-cylinder, which can be mated to a 6-speed manual or CVT. The setup is estimated to deliver up to 33 MPG. The interior layout is pretty simple with an 8-inch touchscreen mounted between the two center vents. And even though it’s an entry level vehicle, it will have a number of available driver assistance systems. The Venue will be built in Korea and start hitting showrooms in the 4th quarter of this year.
MERCEDES GLS GETS EVEN BIGGER
Another SUV revealed was Mercedes’ new GLS. It was already the largest and most luxurious utility vehicle in the automaker’s lineup, but now it’s even bigger. The wheelbase was extended by nearly 2.5-inches, which improved 2nd row legroom by 3.4-inches and Mercedes says the 3rd row is suitable for people up to 6’4” or 1.94-meters. The interior features a similar infotainment system to what we’ve seen in other recent Mercedes reveals, but in the GLS the two 12.3-inch display screens are standard and the vents below the screens are more rectangle shaped, rather than round. Under the hood will be the choice of 6- and 8-cylinder engines. Both are paired with 48-volt mild-hybrid systems that runs the water pump, AC compressor and also provides a boost function to the engine. A 9-speed automatic transmission and all-wheel drive are standard as well. The new GLS will go on sale in the U.S. by the end of the year.
LA AUTO SHOW COULD MOVE TO MARCH
Speaking of auto shows, Autoline Daily has learned that the LA auto show will happen in November this year but then will probably move to March. A source tells us that the LA Convention Center, where the show is currently held, will undergo construction next year, forcing the change. We’re told the LA show signed a 3 year deal to exhibit at the LA Rams football stadium. But since the football season runs from August through at least December, the auto show can’t use the stadium then. Auto shows are going through a lot of upheaval. There was a time when automakers felt they had to be at every auto show. But now they’re skipping shows, unless they have something major to reveal.
And a quick programming note before I sign off. There won’t be a new Autoline Daily tomorrow, because we’re taking time off for the Easter holiday weekend.
But that’s it for today, thanks for watching, have a great weekend and we’ll see you again on Monday.
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April 18th, 2019 at 12:22 pm
HabaNiro is cute.
Venue is sort of endearing. Goofy-cute-ute? Define a new segment and then dominate it.
April 18th, 2019 at 12:39 pm
Just a thought from your show the other day. Do you think Ellie (?) would enjoy hanging out on the set of After Hours like John’s dog (sorry, forgot name) used to?
April 18th, 2019 at 1:01 pm
Michael – Unfortunately, Ellie has deemed the Autoline Office as hers and she defends it as such. In other words, I think she might bark too much. Ike was a much more laid back dog.
April 18th, 2019 at 1:13 pm
Ellie is maybe better suited in the role of vehicle tester, I know any vehicle we buy we always consider how the dogs will fit.
April 18th, 2019 at 1:22 pm
4 which explains the wild success of Subarus the last decade or so, 100 or so months of continuous sales increases, many attribute them to their great ads featuring said dogs. I think their great affordability also helped.
April 18th, 2019 at 1:25 pm
So, Mazda is still proceeding with the diesel to save face, and not much else. From a customer perspective, it seems to be a loser… more $ upfront, more $ for maintenance, more expensive fuel (east of the Mississippi), and no significant fuel consumption saving. What am I missing?
April 18th, 2019 at 1:34 pm
6 The move makes no sense to me, despite the fact that all my cars currently are excellent E 320 Bluetec (diesels). The MPG gain will be easily eaten away by the fuel price differential, and the extra $4,000 will never be recovered.
The decision to offer this in the US market has “major league blunder” written all over it. And is consistent with Mazda’s poor performance in the US market (sales wise and market share) for more than a decade now, as smaller players like Subaru, who barely had 1% share 10 years ago, overtook Mazda which is stagnating around 1.5-1.8%, and now is close to 4.0%!
April 18th, 2019 at 1:35 pm
7 and in addition, the MPG of the Mazda diesel is far inferior than that of the much larger, heavier and far more powerful E class diesels, incl my 2007 and 2008s, but especially the more recent 2014 models, which achieved mind-boggling 45 MPG HWY in actual accurate CR tests!
April 18th, 2019 at 1:37 pm
6 But I don’t think diesels have more maintenance, they are 100% trouble free and the synthetic oil changes are totally reasonably, these are cars designed to last millions of miles (the legendary E diesel European Taxis).
April 18th, 2019 at 2:10 pm
I got some market share data going back to 2011:
2011: Mazda, 2.0%, Subaru, 2.1%, Volvo, 0.5%
2013: Mazda, 1.8%, Sub, 2.7%, Volvo, 0.4%
2016: 1.7%, 3.5%, 0.5%
2019 so far: 1.8%, 3.94%, 0.5%!
April 18th, 2019 at 4:21 pm
Subaru’s success reflects America’s love for 4wd, even among people with absoletely no need for it. Subaru is also helped by good advertising. The dog ads helped sell my sister a Forester.
April 18th, 2019 at 5:19 pm
9. Oil changes are much more expensive on a diesel than a petrol. In my state, annual registration fees are based on the vehicle’s MSRP (and bottoming-out to 3 years of depreciation), so the more expensive diesel will be more expensive to “plate”.
11. AWD, dogs, and “love”. Subaru is an amazing study in marketing… having a bi-modal reputation for outdoorsy tree-hugging and WRX rally racing.
April 19th, 2019 at 7:02 am
11, 12 they say it is all about the marketing (a well known Buick dealer, or Buickman, who has appeared on AAH insists on it), but it is ALSO the AFFORDABILITY.
Everybody and his mother-in-law make AWDs and 4WDs. Even poor Volvo does, but it is stuck in its miserable 0.5% market share for ever in the US market. Why? Unaffordable.
Look how the 3-row recent Subaru Ascent is priced. Far cheaper than its rivals. No wonder it sells too.
April 19th, 2019 at 9:36 am
11 “…even among people with absoletely no need for it. ”
Nobody buys what they “need’ in a free society. Everybody buys what they ‘want’.
You obviously do not “need” either the Mini or the Corvette, but only the Prius and maybe the old van, but who cares, you wanted them, you bought them.
I never needed the 740iL, but I wanted it (plus it was a screaming bargain as were the two Mercs).
April 19th, 2019 at 10:28 am
14 I guess I should have worded things differently. They don’t need AWD, and don’t even know why they “want” it.
April 19th, 2019 at 4:18 pm
happy Easter everyone.
April 19th, 2019 at 5:46 pm
My wife and I bought a 16 Crosstrek Limited . We’ve had it 3 years and she still loves it. The only thing we’ve had to do is change the oil so far. She looked for 4 years at the autoshow and kept going to it. It was the right size for her. She didn’t want a big SUV/CUV and we needed something to haul 4 adults in comfort. It fits the bill. The dependability and safety record sold us. I also wanted something she would confident driving in snow now that I can’t drive her to work. Subaru makes a great product and they don’t overcharge IMO for it. other CUVs similar with all the same options were 1000s more or got worse mileage. So it was the perfect vehicle for us.
April 19th, 2019 at 5:49 pm
One of the girls at work just bought an Ascent . She loves it. Being over 6 foot tall she needed something she would fit in. It is a huge vehicle to me.
April 19th, 2019 at 6:12 pm
My sister in Indiana bought a Forester a couple years ago, partly because of the dog ads, and it was a good value. The thing she doesn’t like, campared to most recent cars, is that there is no digital speed readout, just a fairly small, not easy to read analog speedometer. It’s been reliable, though, and gets much better mpg than the 2005 Jeep Liberty she had.
April 20th, 2019 at 8:11 am
On my way to the dentist yesterday I saw several Tesla 3s on the road, a black one, a white one and a couple others. I was right behind the white one, it has an EXCELLENT design in the back, very sporty and flowing lines. But the front looks like a pig’s nose. Surprising how the same designer achieves greatness on one end of the car and looks like a fool on the other.
April 20th, 2019 at 2:42 pm
I guess it’s hard to style the front of a car without a grill. Even Porsche 911s, Boxsters, and Caymans have front grill-like black openings. They may, or may not be functional, but the cars wouldn’t look right without them.
April 20th, 2019 at 5:19 pm
20 I’m 100% sure this is not the problem. The Tesla S (and X) are doing fine without a grille, and, more importantly, so did the Original VW Beetle and all Porsche 911s and all kinds of rear- and mid-engined supercars. There is no need for any fake grille, and no need to spray the front end with tinsel or hit it with golf balls like that stupid Hyundai EV does.
April 20th, 2019 at 5:25 pm
21 con’d all it needs is a big stylized “T” logo in the middle, and if they made the T bigger in the S, it will look even better, and be more easily recognizable.
I am actually thinking of getting myself a used S and shipping it as a permanent car overseas. I was planning to send a container, 20X8X8′ is the smallest size, I got a ton of books and papers at the office and at home to move, but still, I roughly calculated the capacity of this container and it can take more than 1,000 cardboard boxes like those Xerox ones who hold 10*500=5,000 pages each, and I doubt I will have more than a couple hundred.
I did a rough sketch of the floor of that container, and the Tesla S (with mirrors folded) should be about 18X6′, leaving two 2′ wide strips, which can take about 200-300 xerox boxes (stacked 10 high), and not putting any boxes on the roof or above the roof of the S.
They ask about $3,000 to take the container from Toronto to the port in Europe, via train/ship, and I would get the S shipped for free, since my employer gives me a $8k allowance for the move (I have to show receipts and get reimbursed)
April 20th, 2019 at 5:28 pm
22 And besides the big “T”, unless Caddy sues them, if I were Musk, I’d add the two laurel wreaths as in the old, great Caddy logo they foolishly dropped from current Caddy logos.
April 20th, 2019 at 5:55 pm
22. Do these containers have a way to chain down a car, or do you just use bubble wrap around it?
April 20th, 2019 at 6:28 pm
The Cadillac laurels have come and gone quite a few times over the years. I was sorry to see them go but have since gotten used to the look of just the shield. I don’t know whether the laurels is GM copyrighted or whether that is even possible but that ‘mark’ might accent quite a lot of other badges out there; might even look good on a Tesla.
April 20th, 2019 at 6:35 pm
24 When I shipped the E320 in 2017, I assume it was chained inside a container. I am not sure if I actually saw it being done, probably not. I drove the 4 hours to Toronto with the car full of boxes (mostly books and papers) and still its weight was much less than if 5, or even 4, people and their luggage sat in it.
I will have to ask the carrier if they can put some hard cover on the car so one can put boxes on top of it, and also how to secure 10 rows of such boxes vertically on the side of the car, I doubt it can be easily done.
April 20th, 2019 at 6:37 pm
26 I doubt that the big liner containerships that typically work like buses, make a ton of stops to load and unload containers on a fixed weekly schedule, I doubt that they can carry cars separately, they are not like Ferries or Roll-on, Roll-of or Car Carrier ships. So they must have put it in a container. What I am curious about is, since they only charged me less than half of what they charge for a full container, I assume they used only half of it and filled the rest of it with other cargoes.
April 20th, 2019 at 6:52 pm
If I end up doing this, I may install a bunch of solar cells on my roof in the summer home and get all my electricity (and the fuel for the Tesla S) for free.
One drawback is the Tesla S is, it is too damn wide, the E320 is much narrower and shorter (a little bit) and whenever I have to drive in the center of the capital to pick up mail etc it is really a tight fit both width-wise and around corners.
BTW in my FB Tesla owners group one owner had his battery replaced for free on the S, and contrasted this with being fleeced by the luxury car dealers when he took his previous cars for service. But when I asked the forum how much it would be if he had to buy it, I got no answer. The data from Bloomberg I posted some weeks ago show a 100 KWH battery in 2018 would cost $17,600, down from about $120,000 (!) in 2010 or 11.
April 21st, 2019 at 8:56 pm
21, Maybe you are too young to know, but a lot of people considered the original VW Beetle quite ugly when there were a lot of them on the road. They even had ads saying “ugly is only skin deep,” or something similar.
April 22nd, 2019 at 6:39 am
29 That’t because it was a revolutionary design. It was also less practical than square designs with more cargo space.
I also have read that the circles in its design were a sure loser, but apparently they helped create strong character lines, and with the rest of the Beetle’s strong points, they resulted in the huge all time record success that it was.
Back to my container plans, I doubt these would be feasible, to load the car and put all those boxes around it, mostly because of the inability to secure them. Containerships frequently have mishaps in the ocean where hundreds of containers fall in the ocean, or lose their place and fall on others and it can be a huge mess.
April 22nd, 2019 at 8:45 am
29, 30. I knew you would be argumentative about that, like with everything else. Jeez. My parents had a ’65 Beetle. I had a ’70. A lot of people considered them ugly, being “revolutionary” having nothing to do with it, when there were a few million on American roads. Over 300K Beetles were sold in the US every year from 1966-1973, so there were a lot of them.
April 22nd, 2019 at 9:10 am
30, 2nd paragraph. Yeah, the idea of shipping a car and hundreds of pounds of boxes in a container didn’t sound very doable, unless there are extremely versatile ways to secure things in the containers. I recently learned that essentially all regular car carriers are “roll on roll off,” where they drive the cars on and off the ship, and tie them down. I remember pictures of VW Beetles being loaded on ships, hanging from cables. Driving the cars on and off would be much more efficient.
April 22nd, 2019 at 9:23 am
31 you knew wrong. I happen to have read extensively about this as well as have experienced the car myself, both in its cramped rear seat and at the front, and my points, if you had an open mind and considered them for their info and comment value, were 100% valid. I could care less who considered it ugly in the 50s, their taste was far less than stellar, considering some utterly ludicrous US auto designs at the time.
April 22nd, 2019 at 9:27 am
32 I asked people who served on ships (Merch Marine Acad grads) and they told me they have carpenters that can divide the container in secure compartments, but still suggested I put my boxes at the bottom as they have heavy items, books and papers. But if they do that they will sure have to charge me more. I will ask the transport companies about it later.
Car carriers are floating garages. Ro-Ro Ships look more ship-like and can take other vehicles, trucks, even rail cars. All these ships are a huge headache safety wise, since obviously they cannot have watertight transverse bulkheads as almost all other ships can.
April 22nd, 2019 at 9:31 am
33 In addition, the Beetle was copied by automakers elsewhere, even early on. Such as the Citroen 2 CV, a very lightweight, flimsy car designed for farmers but became popular with bohemian city types, artists etc, even my cousin with the ill-fated Jeep had one when she was younger, painted black and maroon (two tone), this car had a laughably tiny air cooled engine as small as 375 CC and 9 HP, and probably weighed 600 kg or about 1,350 lbs, much less than even a Beetle.
https://en.wikipedia.org/wiki/Citro%C3%ABn_2CV
April 22nd, 2019 at 9:49 am
33 I don’t know about the ’50s, when I was a young child, and there were only a handful of Beetles on the road anyway. I am talking about the late ’60s and ’70s, when there were a lot of them on the road, and whatever you may have read, a lot of people considered them ugly. Yeah, the “frunk” could have had a lot more space, if squared off, but then the car wouldn’t have looked like a bug, which was a selling point, even though a lot of people thought them ugly.
The 2CV was a front drive car, when most of the more “basic” cars were rear drive at the start of 2CV production in the late 1940s. There were a lot of them on the road when I was in France in 1990, but only a few the last time I was there, in 2008. The 2CV would not be good in a crash.