AD #2616 – Quick Payoff for GM Heavy Duty Investment, Tesla Denied Tariff Exemption, Alpine’s Sportier A110S
June 14th, 2019 at 11:59am
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Runtime: 8:28
0:06 Quick Payoff for GM Heavy Duty Investment
0:50 Tariffs Could Create A Lot of American Jobs
2:04 Barn Find
3:42 Tesla Denied Tariff Exemption
4:16 AutoDrive Challenge Winner
4:50 New Safety Technology Could be Mandated
6:01 Alpine A110S
6:49 Magna Develops New Seat Foam
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This is Autoline Daily reporting on the global automotive industry.
QUICK PAYOFF FOR GM HEAVY DUTY INVESTMENT
General Motors is investing $150 million at its Flint Assembly plant in Michigan to boost production of the heavy-duty versions of the Chevy Silverado and GMC Sierra. The investment will increase production by 40,000 units annually. Let’s do some simple math. Forty thousand trucks at an average retail price of $50,000 translates into $2 billion more in revenue. Assuming a $15,000 profit per vehicle, that means $600 million drops to the bottom line. You’ve got to love these heavy duty trucks. In only three months, GM will pay off its entire investment.
TARIFFS COULD CREATE A LOT OF AMERICAN JOBS
The Trump Administration’s threat to slap tariffs on imported passenger cars has automakers and dealers up in arms. But John Murphy with Bank of America says those tariffs could create a lot of American jobs.
(Clip from ATW #2813 can only be viewed in the video version of today’s show.)
John Murphy goes on to say that while the tariffs would create manufacturing jobs they would also cause job losses in other parts of the economy. That episode of Autoline This Week premieres on July 4th, so keep your eye out for that show.
TOPLESS MODEL MAKES VIEWER MISERABLE
Teddy is one of our viewers who lives in jolly old England and he sent us this picture along with a request. “Hi Autoline, please put me out of my misery, I live here in London, England and everyday I go pass this top-less parked in someone’s yard. Please can you tell me which car is this?” Teddy, we don’t have a lot to go on here because so much of the car is covered up, but it sure looks to us like it’s a 1956 Cadillac Series 62 convertible. But maybe you have a better eye than us and know exactly what it is. Let us know. And if you come across any weird, wild or cool cars or trucks out there, send us pictures, we’d love to share them.
From the company that revealed the secrets of the Tesla Model 3, Munro & Associates will host an Electric Vehicle Conference on Friday, June 21st at its headquarters in Auburn Hills, Michigan. Munro will provide a deep dive into the Motors, Batteries, and Electronics of the Tesla Model 3, BMW i3, Chevy Bolt and Jaguar I-PACE. Purchase tickets on Eventbrite or at leandesign.com. Hurry, only 100 spots are available.
TESLA DENIED TARIFF EXEMPTION
We recently reported that both GM and Volvo asked for tariff exemptions on the Chinese-made vehicles they’re importing into the U.S. Both requests were denied by the Trump Administration. And now it’s Tesla’s turn. It wanted exemptions on the Model 3’s computer or the “brains” of the car as well as its large center screen, which are made in China. But Reuters reports that Tesla was turned down. The company previously warned that the tariffs increase its costs and hurt its profitability.
TORONTO WINS! NO, NOT THE BASKETBALL TEAM
Last week’s After Hours was all about the SAE-GM AutoDrive Challenge, where 8 universities are competing to develop autonomous cars. It’s a three year competition and we just got this year’s results. The University of Toronto scored the most points, and it also won last year’s competition as well. Even so, this competition is grooming a new generation of autonomous engineers from all these universities, and we’re pretty sure all the participants will be rewarded with job opportunities when they graduate.
| AutoDrive Challenge Results | |
|---|---|
| UNIVERSITY | POINTS |
| University of Toronto | 884.96 |
| North Carolina A & T State | 522.98 |
| Texas A&M | 515.10 |
| Michigan Tech | 470.79 |
| Kettering University | 437.11 |
| Virginia Tech | 429.77 |
| Michigan State | 351.73 |
| University of Waterloo | 330.23 |
NEW SAFETY TECHNOLOGY COULD BE MANDATED
Earlier this month, legislation was introduced in the U.S. House of Representatives, that would mandate automatic engine shutoff and automatic park technology in vehicles with keyless entry. A version was introduced in the Senate earlier this year as well. The engine shutoff technology automatically shuts the car off after a certain period of time, in order to prevent carbon monoxide poisoning. At least 4 people have died this year, after letting a keyless ignition car run in their garage. And the automatic park technology immobilizes the car if the driver exits it and leaves it in gear. According to NHTSA, between 2012 and 2014, 142 people died in roll away accidents. Some automakers already offer the technology and earlier this week, Toyota said it will add it to its vehicles starting in 2020.
ALPINE PUTS THE S IN SPORTY
Renault has come out with a new sportier version of the Alpine A110, called the A110S. Its nearly 290-horsepower is about 40 more than the current models and allows the car to go from 0 to 100 km/h in 4.4-seconds. New coil springs are 50% stiffer and lower ride height slightly, the shocks have been tuned, the sway bars are 100% firmer and it has sporty wheels and tires. Unique elements include an optional matte paint finish, orange and carbon fiber accents throughout the interior and exterior and an optional carbon fiber roof. The A110S launches in October with a starting price of 66,500 euro.
MAGNA WANTS TO BUTTS IN COMFORTABLE SEATS
We always like shining a spotlight on the new technology being developed by suppliers since they generate 80% of the value of every vehicle. Magna Seating has come up with a new technology for the foam in seats that’s called FreeForm. It provides a seamless surface so that seat covers fit more snugly, it allows the foam to be tuned for more comfort, and for those hot summer days it’s breathable.
(Clip of Dino Nardicchio, Global Vice President of Advanced Technology Engineering, Magna talking about FreeForm can only be viewed in the video version of today’s show.)
Magna says the FreeForm technology could be in vehicles as early as next year. To get more details we have the entire interview with Dino on our YouTube channel, just do a search for Autoline Network.
But that wraps up today’s report, thank you for watching and have a great weekend.
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Comments (27)
June 14th, 2019 at 12:17 pm
another million jobs paying income taxes should also help the economy.
Sean I believe you are correct on the barn find and the real cool thing about that car if I’m not mistaken is the fuel filler is under the tail lamp.
June 14th, 2019 at 12:30 pm
I’d concur with the answer being Cadillac series 62.
June 14th, 2019 at 12:32 pm
The new safety features would be beneficial depending on how they implement it. I have driven my wife to work in her car she got out and I was two blocks away before realizing she took the key with her. Not a problem as long as I don’t stop and shut the car off. If the vehicle shuts off a few minutes after the key has left that could leave someone stranded just by placing it in park. IMO if the key is more that a few feet away it should shut the car off obviously leaving you the ability to remove items from the trunk without shutting off.
June 14th, 2019 at 12:36 pm
the ‘deal’ with American multinationals has always been that they can operate in my foreign country ONLY if they provide local employment. In Canada, GM will soon be one factory away from providing no benefits at all. If that factory closes, to return to the US, GM can look forward to losing all its sales here. Something to think about before closing foreign factories.
June 14th, 2019 at 12:44 pm
I’d have to go with the ’56 Caddy series 62 as well.
The Alpine looks pretty good; kind of expensive but if it rings your bell, what the heck. There are, for sure, betters alternatives out there (at much better prices).
June 14th, 2019 at 12:46 pm
Our cars chirp the horn if the key leaves the vehicle. It only chirps after all the doors are closed, so the noise can be avoided if you are simply exiting to get the mail from the mailbox. If ignored or missed the horn, the message center reminds you that the key is missing.
Automatic engine shutoff is a good idea, but accommodations are needed for vehicles that have long idle duties like police and other emergency vehicles at a crash site. A cleaner solution would be a CO sensor that automatically shuts down the vehicle as CO nears dangerous levels.
June 14th, 2019 at 1:31 pm
Not sure who will fill those million new jobs, some of which will require certain types of manufacturing skills. They are having difficulty staffing our existing factories now. If Americans move up to these better paying jobs from lower wage jobs, we will need to welcome those immigrants we are currently shunning to keep America running smoothly by filling those low wage, non-skilled jobs. That would be an ironic end result of Trumps America First campaign.
June 14th, 2019 at 2:52 pm
@7 – First, we will need to take every able-body welfare recipient to task… take one of these manufacturing jobs or else.
June 14th, 2019 at 4:56 pm
I can’t imagine that the on again, off again tariff threats will have much near-term effect on US factory jobs, unless there are “ready to go,” fully tooled plants that could be started up quickly. Who knows what will happen next week?
June 14th, 2019 at 5:02 pm
4 With Oshawa closing, Chrysler will have more manufacturing in Canada than GM, with the Windsor van, and Brampton car plants. GM will have only Ingersoll, and an engine plant.
June 14th, 2019 at 5:05 pm
6 I don’t know what my cars do if the car and electronic key part ways, while the car is running. I’ll have to do an experiment to find out.
June 14th, 2019 at 5:25 pm
I knew immediately that the “barn find” was a Cadillac, but I had no idea what year, except that it was 1949-1956. You guys are much better on knowing years of ’50s Cadillacs than I am.
#1 I remember from when I was a young kid, that my aunt’s ’49 Cadillac had the gas fill under the left tail light. I also remember it having a push button to crank the engine, while my parents’ ’50 Dodge had “twist the key” cranking. I guess GM was behind Chysler on starter switches, but was far ahead of Chrysler in automatic transmissions, until 1957.
June 14th, 2019 at 5:33 pm
GM Veteran Those immigrants that wish to come here legally and follow our laws and customs will always be welcome just as most of our ancestors were. It’s those that wish to cut the line in front of those that have waited their turn is where most sane people draw the line.
June 14th, 2019 at 5:37 pm
Drew @ #7 Amen brother, Too many people gaming the system . Ironic how there are signs in national Parks to not feed the animals or they won’t fend for themselves and then we do the direct opposite with people who can help themselves in order to buy their votes in November. Those that don’t need it are taking from those that truly do need help.
June 14th, 2019 at 8:50 pm
Totally unrelated to today’s show, but I was just watching a Mecum auction on TV, and, for good reasons, like fumes and noise, they push the cars through the auction. Still, I keep wondering if there is any way to know if the cars actually run, and drive decently? I certainly wouldn’t want to bid a lot of money on a car that I didn’t know was even drivable, but what you see on TV doesn’t indicate that they run at all. Does anyone here know about this?
June 14th, 2019 at 10:53 pm
@14 – You should run for office. I’d vote for you. I can’t run for office because I am an equal opportunity offender (i.e., too blunt at times).
June 15th, 2019 at 1:42 am
16 Since I have far better things to do with my time than run for public office, I can be as blunt as I want all the time.
June 15th, 2019 at 10:11 am
12, Kit
Yeah I knew it was a fifties Cadillac but had to google photos to close in on the year. My across the street neighbor had a ’55 (I believe) so I knew for sure it was a Cadillac of that vintage (but I lacked the finer details); now my fifties and sixties Chevrolets, I’m pretty much a scholar.
June 15th, 2019 at 10:34 am
18 I know Chevrolets from ’55 through the ’60s, but I’m not sure I could date ’50-’54s.
June 15th, 2019 at 12:22 pm
I went back to see short parts of the video.
On that criminally neglected barn find, it looked so much better in the photo (obviously that was the one)
On the retro (or not) Alpine, I am really not impressed. Even the ‘sportier’ version of an alleged sporty car is lame (but probably thanks to its tiny dimensions and weight it still has decent acceleration), its interior is really bad, and does not belong to a $75,000 (that’s 60,000 Euros, so don’t jump to falsely correct me), and the hood and front end design, while it may be trademark Renault Alpine, does not look good at all. Verdict? Another Loser from the Losermakers in Fronce (that’s how they say it, not a typo!)
June 15th, 2019 at 2:43 pm
For those who have about 13 minutes to kill, here is an interesting comparison of the Alpine, and its most direct competition, Porsche Caymen. The Cayman is the GTS, and the Alpine a “base” A110, but it’s still an interesting video.
https://youtu.be/Nd3Md4YT9J0
June 16th, 2019 at 11:07 am
I looked the A110 up at Wikipedia and it is really Miata-lightweight, 2300-2400 lbs, and also quite small in dimensions, but with twice the HP it should be a rocket, yet it is not a 2 or even a 3 second car (accel below 3 or 4 sec respectively). Besides the poor interior, I would never feel safe in such a tiny car for everyday and esp highway driving. The Cayman is bigger and heavier.
I had to drive downtown on Fri for various errands, a visit to the dentist (1/3 the price in the US private dentists, and just as good) and my weekly shopping, then on the way home there was a 911 Carrera 4s or something next to my white E Bluetec. The 911 looked like new, and it was hard to guess its model year, except it would be after the 1990s. It looks like a work of art on wheels. Really. Not a single fault in the exterior styling. Perfection.
No wonder Porsche has sold over a million already, despite their six figure prices. And makes $20,000 on average profit on each one.
June 16th, 2019 at 3:56 pm
Here’s another interesting test, including a range of sports cars sold in Europe. The A110 is more-or-less between the Cayman and Lotus Elise is lightness, and civility. The Audi TT RS is quite different, and pricier, but performs very well. All of these cars are certainly “niche” vehicles, but except for maybe the Elise, would work as daily drivers for a lot of people.
https://www.carmagazine.co.uk/car-reviews/comparison/2018/alpine-a110-vs-porsche-718-cayman-vs-lotus-elise-220-cup-vs-audi-tt-rs-quick-group-test-review/
June 17th, 2019 at 3:57 am
Many of these cars have puny 1.8 engines. Reminds me of the Toyota 1.8s which were used on many tiny Lotuses at the time. I rented a Celica coupe in Denver once which might have the same engine. Was not impressed at all with its power or performance, and on top of that the rear visibility was atrocious. Plus quite cramped inside, but I guess those who buy them want them like that.
June 17th, 2019 at 7:58 am
The current Lotus Elise uses a supercharged Toyota 1.8 of the same engine family as used in Corollas.
June 17th, 2019 at 11:20 am
https://www.thetruthaboutcars.com/2019/06/rare-rides-the-suv-oddity-which-is-a-1998-laforza/#more-1675344
“Featuring the supercharged GM 6-liter V8 and 52,000 miles on the odometer, it sold at Sotheby’s in Fort Lauderdale in April 2018. For $4,125.”
Can’t argue with the price.Surprisingly low for such a rare bird.
June 17th, 2019 at 11:50 am
15 (Kit) Most or all of the cars sold at Mecum auctions are available/on display ahead of time so you can talk to the owners, “inspect”, and determine the pedigree of what you might be bidding on. Going to one of these auctions is like going to a car show.