This is Autoline Daily reporting on the global automotive industry.
USMCA ONE STEP CLOSER TO PASSING
Looks like the U.S., Canada and Mexico just took a step closer to getting a new free trade agreement. Last Friday, the Trump Administration announced it will lift tariffs on steel and aluminum imported from Canada and Mexico. GM and Ford say that the tariffs cost them around a billion dollars and FCA reported it cost $500 million. Suppliers also say that they hurt their business. These tariffs were a real sticking point on finalizing the US-Mexico-Canada trade pact, the USMCA, which is replacing NAFTA.
FORD EMPLOYEES PREPARING FOR LAYOFFS
Today is a black day for a lot of employees at Ford. The Detroit Free Press reports that quite a few salaried workers packed up their belongings on Friday, because they anticipate they’re going to be laid off tomorrow. Ford is in the midst of an $11 billion overhaul, which could include as many 25,000 jobs getting eliminated globally. The biggest brunt is expected to be borne by Ford’s operations in Europe.
ALONSO FAILS TO QUALIFY FOR INDY 500
Wow, what a shock at qualifying for the Indy 500 over the weekend. Simon Pagenaud powered his Penske-Chevrolet to the pole position with a speed of 229.992 miles an hour. But the big buzz was the failure of Formula One star Fernando Alonso and team McLaren to qualify for the race. One of the criticisms of Indy Car racing is that it’s just a spec series. But when a Formula One champion and a leading Formula One team can’t even go fast enough to quality, it shows that this spec series is a lot more technically challenging than the critics seem to believe.
TECHNICAL DETAILS OF FORD POLICE INTERCEPTOR HYBRID
We have more technical details of the hybrid version of the Police Interceptor of the Ford Explorer. Ford calls it the MHT, for modular hybrid technology. It’s a P2 hybrid, that is, the electric motor is sandwiched between the engine and a 10-speed transmission. It adds 45 kilograms and 135 millimeters in length to the powertrain. It also has a clutch so the vehicle can run in pure EV mode. The electric motor provides 35 kilowatts of power. That’s about 44 horsepower. Combined with the vehicles naturally aspirated 3.3 liter V6, total output is 318 horsepower and 322 pound feet of torque. That allows the Police Interceptor to tow 3,500 pounds at sustained highway speeds based on the SAE J2807 test. Ford says it will get 24 miles to the gallon combined, and that it will save 1,200 gallons of gasoline a year assuming the vehicle is driven 20,000 miles a year and spends 60% of its time idling. At $2.75 a gallon, that would save $3,500 a year. And guess what Ford is charging for the MHT? $3,500. So the whole package should pay for itself in a year.
VALUE OF CONTENT COMPARISON
Merrill Lynch came out with an interesting study comparing the value of all the parts and components in an ICE car, a battery electric car and a Level 4 and 5 autonomous car. It says the average U.S. car with an internal combustion engine has about $14,500 worth of content, but this does not include the cost of final assembly or profits. By the same measure, a BEV has $33,600 worth of content. And a Level 4 and 5 AV has $150,000 to $200,000 worth, of which three-quarters is hardware and one-quarter software. It also includes R&D costs, which is a key reason why the cost is so high.
| MERRILL LYNCH CONTENT COMPARISON |
| ICE Car |
$14,500 |
| BEV |
$33,600 |
| L4-5 AV |
$150-200,000 |
MERCEDES PACKS NEW TECH INTO SINGLE PROTOTYPE
To demonstrate how Mercedes is taking on future vehicle safety, it jam packed all its latest technology into a single vehicle, called ESF 2019. Some of it we’ve seen, like projector headlights and turquoise lighting to communicate autonomous vehicle intent, but other technologies are new. A warning hazard symbol can be displayed on the grille or projected onto the rear window to indicate there’s an issue in traffic or the vehicle has a problem. If the problem is with the vehicle, a warning triangle also pops out from the roof and robot sets up a roadside warning as well. To keep the smallest riders safe, Mercedes developed a child seat that communicates with the vehicle via radio frequency, which allows it take preventative measures before an accident, like pre-tensioning the safety belt. There’s also an airbag system that completely envelops the seat and even the child’s vital signs are monitored. And Mercedes is trying to incentivize rear seat passengers to buckle up. A belt feeder extends the seat belt when the door is closed to make it easier to grab, the belt buckle lights up, the seat belt is heated and a USB port incorporated into the buckle doesn’t connect until the belt is buckled.
STEEL WILL PLAY A ROLE WITH CARS IN THE FUTURE
For decades, analysts predicted that cars in the future won’t be made from steel but so far steel remains dominant. On last week’s Autoline After Hours, we were joined by Dr. Jody Hall from the Steel Market Development Institute, and she explained why steel will play a role with electric and autonomous cars in the future.
(The AAH preview is only available in the video version of today’s show.)
For a deeper dive into the steel industry, you can watch that entire episode right now on our website, Autoline.tv or you can find it on our YouTube channel.
But that brings us to the end of today’s show, thanks for watching and we’ll see you again tomorrow.
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Comments (38)
May 20th, 2019 at 12:10 pm
I have been questioning why police and mail delivery cars are not hybrids, given the time they spend idling, for 20 years. Mail Trucks are still from the time of Flintstones, but I’m glad to see that at least the Police Explorers are going hybrid AND are so affordable. (maybe Ford wants police depts to stop buying all these Dodge Chargers)
In the mid-90s I served in the Financial Affairs Committee of my U. and I also questioned why the expensive buses used in the ‘free’ Univ. bus service between the 3 or 4 campuses had to be dirty diesels and not hybrids. It took them 20 years to convert them too.
May 20th, 2019 at 12:12 pm
1 something did not sound right, so I checked, it was not the mid 90s but 1998-2001 when I was on that Committee, in 1995 there were no hybrids around.
May 20th, 2019 at 12:13 pm
Ford is in the midst of an $11 billion “overhaul”
I love the “Newspeak”. Is this how Hackett calls firing 25,000 loyal employees? an “Overhaul”? sounds more like a “MASSACRE” to me.
May 20th, 2019 at 12:20 pm
Ford has something even better for city police cars, but they are going to drop it soon. That’s the Fusion hybrid which gets almost double the mpg of the Explorer, and I suspect uses less gas while keeping the lights flashing and radios working when parked.
May 20th, 2019 at 12:23 pm
Alonso really seems to make all the wrong decisions about who to drive race cars for. Surely, he could have gotten a competitive ride with one of the established teams, but decided to go with McLaren, who hasn’t raced at Indy for years. I was surprised, though, that they couldn’t make the car work, since it is the same as everyone else is using.
May 20th, 2019 at 12:26 pm
I guess Ford doesn’t need as many employees, since they are getting out of the car business. The whole thing is sad to me, but I’m sure Toyota and Honda like their decisions.
May 20th, 2019 at 1:03 pm
Sean, did you say that new Mercedes prototype has “heated seat belts”? REALLY?
Mercedes is known for building unnecessary complications into everything – and now they’re trying to make even something as un-modifiable as a cloth seat belt a costly repair item.
Not to mention, if it’s cold enough outside to even warrant a ‘heated seat belt’, wouldn’t the occupants already be wearing enough outer garments to keep any heat form said seat belt from even being felt? DUHH…
May 20th, 2019 at 1:20 pm
7, I thought the same, just because you can doesn’t mean you should (even on a demonstration vehicle); simply no need ever for a heated seatbelt.
May 20th, 2019 at 1:24 pm
7. They say they hope to encourage seat belt use but I think most people are doing so now anyway.
https://www.caranddriver.com/news/a27509783/mercedes-benz-heated-seatbelts/
May 20th, 2019 at 1:32 pm
9, Thanks for the link, BUT after reading it it still didn’t explain why. They said for more compliance to wear the belt but failed to reach any logical argument towards that end.
May 20th, 2019 at 2:02 pm
Let’s just call it like it is… Ford is firing thousands of loyal employees to free-up funds for:
1. Bill’s pursuit of a legacy (the Train Station project),
2. Foolish spending on various autonomy acquisitions (that intelligence could have been acquired through partnerships at a fraction of the billion-plus that was spent),
3. Hackett’s error in prematurely exiting the car business (Ford is aggressively incentivizing Fusion hybrids because Fiesta and Focus can no longer carry the CAFE ball).
May 20th, 2019 at 2:08 pm
11 This is what Bill Ford and his siblings, who, owning a tiny % of all Ford shares, still have a majority of the Voting Shares, got by foolishly hiring Hackett, formerly a…College athletic director, and later a Chairmaker who closed down the store and moved production to China (Steelcase).
What, (if anything) were they actually THINKING?
May 20th, 2019 at 2:10 pm
4 The Fusion Hybrid I was bribed $50 to drive a few Thanksgivings ago had a pitiful, non-usable Trunk. I believe recent hybrid sedans like the Camry and Accord have much more efficient designs and normal trunks.
May 20th, 2019 at 2:14 pm
Certainly a heated belt was just throwing ideas at the wall to see what sticks. However I do like the idea of the lighted receiver end, as they can be hidden at night. Find it hard to believe that MB would want the liability of a child safety seat. One of the main reasons Dodge got rid of their integrated child seat in the Caravan.
May 20th, 2019 at 2:32 pm
13 The current Camry and Accord hybrids have regular trunks, with fold down rear seat backs. The traction battery under the rear seat cushion. The Camry has the 12v battery in the trunk. I don’t know about the Accord.
May 20th, 2019 at 2:32 pm
12 the ford family have special shares, voting shares, any one can go and buy all the shares they want and still not have a say. And never will.
May 20th, 2019 at 2:32 pm
12 the ford family have special shares, voting shares, any one can go and buy all the shares they want and still not have a say. And never will.
May 20th, 2019 at 2:33 pm
13 The current Camry and Accord hybrids have regular trunks, with fold down rear seat backs. The traction battery is under the rear seat cushion. The Camry has the 12v battery under the floor of the trunk.
May 20th, 2019 at 2:53 pm
The average amount of steel used in the manufacture of a vehicle is about 1 ton which is around $700. A 25% tariff would be $175 per vehicle. Which undoubtedly was passed onto the consumer. So I fail to see how that cost Ford or GM 1 billion dollars.
May 20th, 2019 at 3:14 pm
Current seat belts ride up our necks like B movie villains trying to strangle us. We twist the latch end of the belt 3-4 times to get breathing space. Ask your next auto-professional if they are even aware of the problem?
May 20th, 2019 at 3:47 pm
Anyone else think that Merrill Lynch’s content comparison is way off base. You can list the dollar amount for each but you certainly can’t compare them with each other when M/L cherry picks what they are including in their numbers. Content should be content; including r&d only for autonomous makes comparison apples and comquats.
May 20th, 2019 at 3:57 pm
21 – Chuck, I agree.
20 – All of my vehicles (that have a B-pillar) have height-adjustable shoulder harnesses. We have no comfort problem (from my 4’10” mother to my 6’4” son-in-law). Twisting the belt increases your chances for serious injury as your body forces are distributed over a narrower section of the belt webbing.
May 20th, 2019 at 5:14 pm
20. I never had that problem. I guess at 5’10″, I am the right “average” height, even for non-adjustable belts like in my 1989 van. I’ve never driven a Tesla Model 3 or BMW i3, though.
May 20th, 2019 at 6:13 pm
1 Those Grumman mail trucks are real relics, with GM “iron duke” engines, and 3 speed automatic transmissions. Does anyone here know who maintains them? Does the postal service have shops, or do they take them to Chevy dealers with some mechanics a year or two from retirement, who are old enough to be familiar with the hardware?
May 20th, 2019 at 9:03 pm
24 They now test 50 replacement trucks from 5 makers, even electrics, and hybrids
https://www.trucks.com/2019/02/04/postal-service-wrapping-testing-mail-truck-prototypes/
May 20th, 2019 at 10:41 pm
The Grumman mail trucks, the few that are left, are maintained by the USPS central garages or USPS local garages they Central Florida about half of the delivery vehicles are Dodge Caravans and Ram Promasters.
May 20th, 2019 at 10:44 pm
Sorry “they subcontract service and repairs to.” was left out.
May 20th, 2019 at 10:57 pm
I wonder if Mercedes is heating the whole seatbelt or just the metal end? The metal end does get cold in the winter and if the Florida sun hits your buckle just right, trust me it gets hot enough to burn.
May 21st, 2019 at 1:19 am
26 A Grumman truck still delivers to my condo most days, but occasionally they use a Caravan or something else.
May 21st, 2019 at 1:23 am
I’d think they’d continue to want RHD vehicles for rural delivery, whatever they are. Maybe they can get RHD Promasters. The Fiat version would be made that way for the UK, and some other markets.
May 21st, 2019 at 4:41 am
28, Ctech, the C&D article shows an infrared picture of the seat belt being heated. It is the whole seat-belt belt; I doubt the attaching latch is heated (nor should it be, but the belt being heated is not one of M/B’s great ideas either).
May 21st, 2019 at 7:44 am
Instead of heating seat belts, someone should work on pre-cooling steering wheels of cars parked in the summer sun.
May 21st, 2019 at 9:01 am
32 the obvious solution to this, which also cools the cabin while parked from the 120s and 140s to a livable temp, is solar panels on the roof/hood/trunklid that power the A/C for free.
meanwhile, while Germany has decided to close down all its 84 coal-fired plants, Australia’s elections was a huge upset, labor, which was also in favor of limiting coal production, which is one of Australia’s few main exports, lost badly. (I am not sure if their “Green New Deal” campaign was headed by a 29 year old waitress named Cairo Occasional Cortex).
As long as India keeps burning the coal, Australia and South Africa and maybe even the US is going to export it to them.
https://www.hellenicshippingnews.com/australias-shock-election-shows-killing-coal-mining-is-no-sure-thing-russell/
May 21st, 2019 at 9:03 am
33 In absence of this solar panel deal, as for the steering wheel, when I park it in the summer and there is no shade, on top of leaving the window 1/8th ” open, I carry a white towel and cover the steering wheel and the driver’s seat with it. Or one of these beach straw spreads with a silver back (sun reflecting). There are also windshield covers many companies hand out for free, advertising their products.
May 21st, 2019 at 9:43 am
33 The ~200-250 watts you could get from solar panels on the roof of a car wouldn’t be nearly enough to run the A/C continuously, but could add some “juice” to the battery of an EV or hybrid over the day. I can “remote start” my Camry to cool it down, but I never do. I use the white towel over the steering wheel on hot, sunny days, though. With the cloth seats, the hot seats aren’t an issue as with leather or vinyl.
It looks like India needs a bunch of wind, solar, and nuclear power, as they rapidly increase use of electricity, with use of A/C expanding dramatically.
May 21st, 2019 at 10:06 am
35 500 million of the 1 billion or 1.2 bill indians do not even have electricity or toilets. Socialism has impoverished them to an extreme degree, and they seem to not understand Big corrupt Government is the cause of their misery. They have no $ to go renewable.
May 21st, 2019 at 10:25 am
32,33 I use windshield solar shields which helps but the car still gets pretty hot but it will keep the steering wheel a little cooler than if just left exposed. I also have Vent-Visor so I can leave the windows cracked an inch or so to help with ventilation. (I once had an incident leaving the windows cracked using the Vent-Visor but won’t go into that too much but will say I had a bunch of micro sand throughout the cabin).
May 21st, 2019 at 11:42 am
36 India may be poor, but tens of millions of Indian homes are adding a/c each year. Providing the power for them presents problems in multiple ways.