This is Autoline Daily reporting on the global automotive industry.
Before we get started with today’s show, what’s in a name?! Autoline host John McElroy has been receiving quite a few comments on how he pronounces Tesla. To see what John’s college linguistics class taught him, click the link in the description below.
ENTERPRISE TESTS SUBSCRIPTION SERVICE
You know… we’ve seen a number of automakers, mostly luxury brands, launch subscription services and now Enterprise, the rental company, is going to experiment with it. Called Subscribe by Enterprise, it costs $1,500 a month plus a $250 enrollment fee, which allows users to swap vehicle four times a month from a fleet of 20 vehicles. It includes damage and liability insurance, maintenance and roadside assistance. It’s currently only available in Minnesota, Missouri and Nevada. Automakers have had mixed results with subscription services, so it will be interesting to see if Enterprise will have any better luck.
FERRARI POSTS STRONG EARNINGS
Ferrari isn’t doing so hot in Formula One so far this year. But it’s a runaway winner from a financial standpoint. It sold 2,600 cars in the first quarter, up an impressive 23%. Though sales increased all over the world, they were up nearly 80% in China, partly because Ferrari hustled to deliver as many cars as it could before China ratchets up its emission standards this year. The company generated 940 million euros in revenue up 13%, and posted a net profit of 180 million euro, up 22%. The rest of the year could be very strong. Ferrari just introduced the F8 Tributo and will unveil four more models before the year is over.
| Ferrari Q1, 2019 Earnings |
| Sales |
2,610 |
+23% |
| Revenue |
€940 Million |
+13% |
| Net Profit |
€180 Million |
+22% |
CR RATES INFOTAINMENT SYSTEMS
Who has the best infotainment systems in cars? Consumer Reports just rated them, and it says Tesla tops them all, followed by BMW’s iDrive, Genesis and its Genesis Display, Ford and Lincoln’s Sync 3, and FCA’s U-Connect. At the bottom of the list are Alfa Romeo, Mazda, Acura, Honda and Lexus. That touchpad in every Lexus was rated absolutely the worst. CR says that infotainment systems with buttons and knobs for frequently used operations like volume and tuning score far better than system with touch controls.
| CR Infotainment Rating |
| COMPANY |
SYSTEM |
SCORE |
| Tesla |
IVI |
86 |
| BMW |
iDrive |
80 |
| Genesis |
GenesisDisplay |
75 |
| Ford/Lincoln |
Sync 3 |
73 |
| FCA |
U-Connect 4 |
72 |
| BOTTOM FIVE |
| Alfa Romeo |
Alfa Display |
54 |
| Mazda |
Mazda Connect |
53 |
| Acura |
AcuraLink II |
52 |
| Honda |
HondaLInk |
50 |
| Lexus |
Lexus Touchpad |
46 |
FORD HELPS IMPROVE NEW DESIGN PROCESS
You may remember a story from earlier this year about Ford using a new VR, 3D design tool, called Gravity Sketch. After several months of testing out the technology, the automaker is helping to improve the process. The new Co-Creation feature allows a designer to transfer to another designer’s point of view within the virtual reality space to see from his or her perspective. And it’s a great way to train other designers in Gravity Sketch. As of now the Gravity Sketch technology is being used in five global design studios for both interior and exterior.
PORSCHE PUTS 911 SPEEDSTER INTO PRODUCTION
After being presented as a concept model, Porsche announced it will put the 911 Speedster into production. Only 1,948 will be made. One of its distinguishing features is a double-bubble cover for the convertible top, which is made from a single piece of carbon-fibre reinforced plastic. Other unique design elements include shortened window frames with lowered cowl top panels, smaller side windows and a new front spoiler lip. It borrows the carbon fiber hood and wings from the 911 R, front apron from the GT3 and the rear spoiler and apron from the GT3 Touring. Under the hood is a 4.0L naturally aspirated 6-cylinder boxer engine with just over 500-horsepower. Mated with a 6-speed manual transmission, the 911 Speedster can do 0 to 100 km/h in 4-seconds. Orders are open now and price starts at a little over $300,000 in Germany.
DAIMLER APPLIES 3D PRINTING TO MANUFACTURING LINE
More and more automakers are experimenting with 3D printing in the manufacturing process. Not only can parts be made lighter, it also has the potential to reduce cost. That’s why Daimler has teamed up with Premium AEROTEC, a company that makes 3D printed parts for Airbus planes, and EOS, a company that makes 3D printers. They’ve launched a pilot project called NextGenAM, to create a next-gen digitalized manufacturing line that’s able to 3D print aluminum components for automotive and aerospace applications. It’s already capable of making parts to series-production quality standards and Daimler is producing replacement brackets for diesel engine trucks. The companies say that manufacturing costs can be reduced by 50% compared with existing 3D printing systems. The next step for Daimler is to see if the process is able to meet requirements for the stringent industry standard VDA 6.3.
We’ve got a great Autoline After Hours coming up later this week. Joining John and Gary is Ryan Eustice, who’s the senior VP of automated driving at the Toyota Research Institute. He’ll be bringing its TRI-P4 prototype to the studio, which is a modified Lexus LS equipped with self-driving technology. So to get the inside scoop on Toyota’s autonomous efforts, make sure you mark your calendars for 3PM eastern time this Thursday.
But that wraps up today’s report, thanks for watching and we’ll see you again tomorrow.
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Comments (25)
May 7th, 2019 at 11:51 am
Two thumbs up on John’s English lesson (and it’s also worth a good smile): Link: https://www.youtube.com/watch?v=YKU-S_bpSvg
May 7th, 2019 at 11:56 am
I dunno… 1500/month for a car seems a bit, well, pricey. For that sum I can get 2 new cars and insure them. Or five used cars and have my own fleet and advertise on Turo and make cash back.
May 7th, 2019 at 11:57 am
Great show as always.
With all due reapect the music could use an update
May 7th, 2019 at 12:06 pm
That was a great Tesla linguistics rant piece, John! You nailed it. The door slam was the perfect ending to that soliloquy. The proverbial ‘mic-drop’, if you will.
May 7th, 2019 at 12:14 pm
The Enterprise subscription monthly price does seem high, even with insurance and maintenance included. As I recall from the press release, the fleet of vehicles subscribers can choose from is rather mainstream. So this price is steep for the ability to swap cars once in awhile.
May 7th, 2019 at 12:16 pm
2 Yeah my current corporate rate is like $39 a day and I can get a weekly rate right around $200 and I typically get upgraded to a small SUVs for free. So I could basically rent a new vehicle each week for less than $1000 a month why would I or anyone sign up for this service?
May 7th, 2019 at 12:18 pm
@2 – Agreed.
Not to mention (and perhaps this is another reason these subscription services are virtually destined to fail), even if I felt that the $1,500/mo were a justified spend, at 4 swaps per month I would quickly exhaust the selection of vehicles at Enterprises that even interest me. Even if I were chomping at the bit to drive each of the 20 available models, in five months I’d run out of options and be looking around for my next new car experience.
This wouldn’t be a concern if most of the car buying public had $18,000/yr burning a hole in their pockets. But because of the narrow target market for this sort of thing, I think I’d be a bit concerned.
But, time will tell…
May 7th, 2019 at 12:21 pm
The grammar lesson was interesting. I usually like to go to the source. So, how does the Tesla family pronounce their name? Are there any living relatives of Nikola we could ask? He was originally from Croatia. Maybe we could ask some folks from the town he was born in.
On another pronunciation quibble, what is up with the Canadians and their insistence on saying Zed for the letter Z. They say Zed-28 when talking about the performance version of the Camaro, and on and on. But, they do not say zedebra when talking about that black and white striped animal. So, whats up with that?
May 7th, 2019 at 12:22 pm
The real advantage to 3-D printing is being able to reduce the spare parts inventory of your factory floor. When all your equipment is built and you are given the 3-D models its typically quicker and cheaper to print off a part than to order one from a vendor. That’s assuming it can be made from a material that can be printed.
May 7th, 2019 at 12:26 pm
It seems the CR Infotainment System rating is a little bit of a contradiction. Those systems without knob were thought to be lower rated, yet the Tesla (or is that Tezla) system came out on top. The data for the ratings were from owners so their was likely some bias and inconsistencies in perception, rather than a panel of judges doing qualitative comparisons. From my experience, if it does not have a volume knob, that would be enough to not buy the car… A real deal-breaker.
May 7th, 2019 at 12:27 pm
7 Right. I am all for pronouncing every foreign word exactly as the people there do it. Don’t say Porsch, say PorschE. Don’t say “CitrOen”, John, say it as the French and the Citroen Family say it, (all french words have the accent on the last syllable, CitroEn!) This is not that hard. IMO the hardest thing for people here to pronounce is the “CH” in Bach, they all say it as if the Giant of Classical Music was playing football in some position, “BacK”!!!. It is not “K”, it is “CH” as in “Have”.
How can everybody say “Have” and nobody can say”BacH”? It is a mystery wrapped in a riddle tied with an enigma, or something of that sort.
BTW I always say “TeSla” with an S, not a Z. If it was a GERMAN word, it sure would be pronounced with a Z, and if you wanted to say it with an “S” you would need to write it as “TeSSla”
May 7th, 2019 at 12:32 pm
$300,000+ for a Porsche Speedster is a FRIVOLOUS price. Especially when you can get a Boxster convertible for less than $100,000.
What do you get for the extra $200,000? Is it worth a Mercedes-Benz S AMG 65 with 640 HP and 738 lb-ft torque and heated, cooled and massaged seats?
May 7th, 2019 at 12:39 pm
$1500 a month for some econobox from Enterprise is RIDICULOUSLY expensive. I don’t get it because in 2016 I rented an Elantra from the same Enterprise for a week for $175. (I did not like it one bit, but at least it started every cold morning, which is I assume why owners are satisfied with this tinny, cheap POS)
Now if you can only change four times a month, how come it should it cost TWICE, $1500=8.7 times the $175 or less than four times the weekly rate?
It makes zero sense. The monthly rate should be less than $1000. Make it $800 for best results, and drop the stupid $250 fee, Enterprise.
May 7th, 2019 at 12:42 pm
For $1500/month, you should be able to switch between an S-Class, 911, Tesla S, and Q7. With Enterrise, it’s probably more like a Camry, or Sorrento, if you want a CUV.
May 7th, 2019 at 12:52 pm
7 The letter “Z” is called “zed” in the UK and apparently also in Canada. SImilarly “Aluminium” is the way the Brits say “Aluminum”. It is not a pronounciation difference, it is like “harbor” and “harbour”, the extra U in the UK.
May 7th, 2019 at 1:05 pm
in AAH Ryan will bring in one of these top of the line LS600 hL with the LIDAR on the roof. Maybe he will explain what all the conrtaptions do, but my biggest question is, why did Toyota have to sacrifice the $100,000+, top of the line Lexus LS 600 hybrid long model, and could not do the same instrumentation on a $25k corolla or $20k yaris?
May 7th, 2019 at 1:07 pm
9 I agree. The problem with doing a rating of, well anything by consumers is they need to be in comparison and something like infotainment systems which get upgraded and improved as quickly as most all electronic operating systems its hard to know if the consumers had much experience with any other recent systems. A much better report would be from a panel of judges that compare all the systems against each other and not just how happy a consumer is with the one they bought. I too do not car for push button volume or fan controls. Anything I want to be able to adjust up or down quickly needs to be a knob.
May 7th, 2019 at 3:53 pm
15 – Great question. Generally, engineers specify a high content car for the basis to develop new technology, as many new technologies are initially offered on luxury vehicles. Why? Early technology applications bear the cost of development and lack the cost efficiency of 2nd/3rd generation design…. and luxury customers have a greater ability to afford the cost premium of 1st generation new tech. Also, if all the development is done on a vehicle that will be the 1st to deploy the new tech, then the new tech will be quicker to market.
In this case, I doubt an LS is the right 1st application of autonomy. I suspect Toyota’s engineers either blindly applied an old habit – or – the technology required some enabling content that was already and uniquely deployed on the Lexus (e.g., electronic parking brake, front ultrasonic sensors, etc).
May 7th, 2019 at 4:04 pm
For $1500/month (including insurance and maintenance), the target audience will want a diversity of vehicles that satisfies the following real or emotional needs:
A prestige vehicle to impress people at a special event (wedding, class reunion, etc.)
A travel vehicle for the multi-week trips (family vacation or seasonal migration)
A home maintenance vehicle for hauling supplies (landscaping, remodeling, etc.)
A frivolous fun vehicle to “get your ya yas out” (performance handling; convertible; off-reading)
If Enterprise is to be successful, they need to make sure they have the types of vehicles that will unquestionably satiate these needs (and others I may have missed, like an efficient commuter vehicle).
May 7th, 2019 at 4:25 pm
It seems that Tesla buyers are much more forgiving of lack of controls than Lexus buyers.
May 8th, 2019 at 10:45 am
https://europe.autonews.com/frankfurt-auto-show/vw-reveals-name-pricing-id-electric-hatchback?utm_source=breaking-news&utm_medium=email&utm_campaign=20190508&utm_content=hero-headline
So far, I doubt Tesla has a lot to fear from this. Unless US prices are less than $25k, and that with a decent 200+ mile range.
May 8th, 2019 at 11:24 am
That VW EV looks like it’s leaning toward the styling of the Bolt, which while I didn’t find offensive, certainly derailed sales (in favor of the Tesla) in the U.S. Maybe Europe is different.
May 8th, 2019 at 11:29 am
22 That shape is pretty much mainstream in Europe, where they intend to sell the car. They plan sedans and CUVs for the US and China.
May 8th, 2019 at 12:13 pm
They have high hopes for it at VW but it sure wil not cut it in the US market. AND just non-offensive styling does not even begin to make it competitive! Not at these prices and sizes and ranges. AS I SAID, Tesla has nothing to fear from it here.
May 8th, 2019 at 5:16 pm
We don’t know the US price yet, for whatever they will sell here, but it’s unlikely the VW will be as quick as the Model 3 for equivalent versions.