AD #2619 – Comparison of Content Value, Dealer Inventory is Expensive, C-Clamp Lights Make Pickups Look Tough

June 19th, 2019 at 11:40am

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Runtime: 7:11

0:06 Value of Content Comparison
0:56 Dealer Inventory Expensive
2:28 Altima Adopts GT-R Production Technique
3:11 New Material Reveals What’s Behind It
4:47 Best Automakers Over the Next 5 Years
6:05 Pickups Adopt C-Clamp Lights

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39 Comments to “AD #2619 – Comparison of Content Value, Dealer Inventory is Expensive, C-Clamp Lights Make Pickups Look Tough”

  1. Lambo2015 Says:

    I seriously doubt that headlamp design sways a buyer one way or the other on a 50K purchase. Especially when each of the big three truck manufacturers has their version of the design. Yeah it might look good or even tough but I’m pretty sure truck buyers are more concerned with features, capability, towing and value. The “tough” look can easily be achieved with wheels, tires, fender flares, push bars, aftermarket lighting and so on. Sorry Sean I’m not buying it and Toyota/Nissan sales are more a reflection of their overall truck not the headlights.

  2. MJB Says:

    Wait a minute… Am I experiencing Deja-Vu, or was today’s A.D. just one huge mashup of previously aired clips and data?

    I could swear I’ve seen about 85% of today’s show content before. ;)

  3. Larry D. Says:

    As for Merrill Lynch’s BS, it is not worth the paper it is written on, like most forecasts. As for its cost estimates, they are way too lazy to not make them apples and oranges, so also utterly Useless.

  4. ChuckGrenci Says:

    2 MJB
    My thoughts exactly. I was thinking I had ESP, or Deja-vu but if they weren’t rehashed news they sure were very similar (to previous).

  5. Larry D. Says:

    “Dealers have to sell those cars within 60 days if they want to make a profit.”

    I am so sick and tired of this unscienfic, unproven “old wives tale”. I have so many times showed you that this is OBSOLETE, that makers make HARDLY ANY profits with 60 day inventories any more. It has been 30 YEARS or more since TOYOTA invented “LEAN” (or adopted it in its production, and other efficient makers copied it), making a TON of profits by keeping its inventories NOT at 60 days, but at 20, 30 and 40. ESPECIALLY for luxury car makers, none of them views 60 days as some kind of voo doo “optimal” level.

    Let’s hope that you will, even at this very late time, join the LEAN revolution!

  6. Larry D. Says:

    Will Munro answer questions in his conference? I am overseas but even if I was in the area I would not be going (maybe the groundhog day daily drumbeat had something to do with it, 2 and 4).

    But Bob Wilson told us he will be going, despite the 700 miles (one way!) he will have to drive. So I suggest he grills Munro, if allowed, to tell us if he still stands behind his claim that Tesla is making 30% profit on the Model 3, and, if not, what were his assumptions to reach that figure when he said it? Let’s get precise here, please!

  7. MJB Says:

    :”(

  8. Lambo2015 Says:

    2&4 Have to agree the only part of todays show that seem to be new content was the Merrill Lynch forecast which I think is about as accurate as the 2016 election forecasts.
    Oh and if dealers are paying $150 to $300 a month to insure a vehicle to sit in their parking lot for a month. Then I’m starting an insurance business.

  9. Brett Cammack Says:

    Waiting for the eventual implementation of masculine genitalia-evocative styling cues for pickups as this all escalates. Todger tail lamps, perhaps?

  10. Kit Gerhart Says:

    1 As far as pickup truck purchases, there is still a lot of brand loyalty with “Detroit Three” trucks, more so than with other vehicle segments. As far as Toyota, they have the top selling “mid size” pickup with the aging Tacoma, but the Tundra doesn’t sell well. That might be partly because they don’t have nearly as many option, trim level, and powertrain choices as Ford, Chevy, and Ram. As far as Titan, everyone from CR to the enthusiast publications says it is worst-in-class, so no wonder it doesn’t sell well.

  11. Kit Gerhart Says:

    9 In the ’50s, some car companies used styling cues inspired by female body parts.

    https://upload.wikimedia.org/wikipedia/commons/thumb/1/19/1951_Ford_Custom_Deluxe_Sedan.jpg/1200px-1951_Ford_Custom_Deluxe_Sedan.jpg

  12. Roger Blose Says:

    Ford is using the spray plasma technology on their 5.0 Coyote engines for the F-150 and Mustang GTs starting in 2018. I have one and hope that it is durable in the long run.

  13. ChuckGrenci Says:

    9,11
    Yeah, Dagmar’s (Virginia Ruth) of the fifties; also seen on others, Cadillac for one.

  14. Lambo2015 Says:

    12 It appears to be durable however if you score a cylinder wall not sure if Ford has made any arrangements to re-spray and machine cylinder walls through service or if you’ll need to buy a whole new block. I’m not sure if they can be sleeved.

  15. GM Veteran Says:

    #5 Slow down a little Larry. You are confusing dealerships and manufacturers. The story was about how long dealers keep vehicles on their lot and how that impacts the dealer’s profitability. Nobody said anything about the manufacturer’s profits and how that relates or doesn’t relate to days supply at the dealership. Floorplan financing and insurance are expensive. Manufacturers often assist dealers by offering 30 or 45 days of free floorplan financing so the dealers order more vehicles. And, conversely, this is why you sometimes see “17% off the MSRP” sales events. By selling the oldest inventory that is at “full juice” as the dealers say, it encourages dealers to replace those units with new units that are just starting their “free days”.

  16. XA351GT Says:

    With that Thermal Spraying if it is machined to a mirror finish how do they get the piston rings to seal properly ? I thought that was the reason behind honing cylinders to a cross-hatch finish to make them seal.

  17. XA351GT Says:

    Kit , I think the only reason Toyota leads the midsize truck market is because Ford was stupid enough to ignore it when the compacts went upsize. This “new” Ranger looks very much like the one they sold everywhere else ,but here since 2011 or 12. The whole argument they made didn’t make sense. They said it was too close in size to the F150 ,but the F150 wasn’t wanted else where in the world. It sounded like a big pile of BS. So Toyota went upsize as did GM & Chevy , proved there is a market for them and they have made the full size trucks even bigger since 2011. The new Ranger is bigger than my 1998 F150 Standard cab /short box truck. The new F150s make mine look like a Courier.

  18. cwolf Says:

    … and this is one reason why it is best to shop at the end of the month. The other is the salesman monthly sales quota. That one car might elevate him/her at a higher bonus level.

  19. Kit Gerhart Says:

    16 Wasn’t the cross hatch honing partly to help rings “break in” so their entire outer surface contacted the cylinder walls? John/Sean, maybe you could have someone on AAH to discuss the obsolescence of of break in, why today’s engines go 10K miles without using even a cup of oil, and related advances in engine tech.

  20. Kit Gerhart Says:

    17 The Tacoma continued to lead by a fairly wide margin, at least for the first quarter of 2019, but maybe the new Ranger wasn’t at full production at the beginning of the quarter. Also, not everyone wants a turbo four. It will be interesting to see how this all sorts out after a few more quarters, and after Gladiator gets up to full production.

    https://pickuptrucktalk.com/2019/04/2019-q1-sales-results-full-size-and-mid-size-pickups/

  21. Kit Gerhart Says:

    If everyone factory ordered their cars, as I sometimes do, there would be day-by-day layoffs, depending on how many cars were ordered that day or week. While the huge inventories are expensive in interest and insurance costs, they function as a “buffer,” allowing the manufactures to operate more efficiently.

  22. Lambo2015 Says:

    19 Crosshatching of the cylinder walls was to help keep the oil on the walls. Optimal crosshatch was 45 deg. If the crosshatch was too steep or parallel to the direction of the stroke the oil would run off too fast causing a dry cylinder condition. Too shallow and you get excessive oil and a hydroplaning condition that will result in excessive oil burn. Cylinders are now much harder and with modern honing practices they accommodate rings that are much thinner, lighter, and lower in tension—often with exotic coatings.

    In addition, lubricating oils have been modified significantly to reduce friction and viscosity. 10w 40 was a common oil and now 0W 20 is being used. All of this has contributed to new power generated by the engine block, but to take advantage of it, new honing procedures have to be adopted. The techniques employed for the past twenty years are rapidly becoming unsustainable.

    The tolerances are tighter on bearing surfaces. In fact putting the wrong thicker oil in todays engines can starve a bearing surface and ruin an engine. So the crosshatching is being obsoleted by the design and oil being used.

  23. Wine Geek Says:

    Hey Sean

    Synthetic Leather = PLASTIC I have a lot of synthetic leather in my Prius Prime and it doesn’t compare with real leather.
    Your evaluation of C-Clamp headlight is a very subjective so subjective to of little real value. What you consider “tough” someone else might consider soft.
    Merrill Lynch’s forecast is as useless as most other information they put out. I used to us them as my broker until I found out they issued BS reports to get me to buy more stock so they earned more commissions. Is it a slow news day today? What happened to the news of the auto world?

  24. Lambo2015 Says:

    21 Technically if everyone ordered their car the plants would continue to operate much like they do today. Just the builds would be for a known sold vehicle rather than dealership inventory. They would likely push delivery dates out to make sure the plant was always running at an optimal rate. Your wait would depend on how many orders were coming in.

  25. Kit Gerhart Says:

    24 I’d think they’d get “caught up” in times of year the fewer people buy cars. It doesn’t matter, because few people order cars anyway, and with most mainstream cars, there’d be no reason to, because you don’t have any option choice anyway.

  26. Kit Gerhart Says:

    22 There’s now 0w16 oil. That’s what Toyota says to use in four cylinder Camry, and Camry hybrid.

  27. cwolf Says:

    I agree with Lambo, for the most part, but there are few exceptions when honing is not necessary; Chromed walls are one, because of the molecular structure. But even then, they require a break in period usually without using a HD oil.
    If the boring is too small/large or if the DIY’s hone with disregards to spec’s, compression could suffer or “coking” could ocure if too tight. But the hone only insures even oil film within the cylinder.
    The only reason todays vehicles do not require warm up is because of the less viscous oils used and harder materials. If you think about it, the rings should never be in contact with the cyl. wall; It’s the oil film on the correct dimensioned wall that creates the highest compression.
    If it’s an engine… it will need honed.

  28. Lambo2015 Says:

    27 Yes I should have said the old traditional crosshatching is being obsoleted. Not all crosshatching. Which is why I stated NEW honing procedures are being adopted. The surface roughness has changed and the ring break-in is a lot less prevalent.
    While working at Ford I was in the global engine group and have watched the spray-in liner process. (wasn’t the program I was on) So I don’t know what they have established for a repair as dealerships or machine shops will not have these machines to do this Heller process. I also don’t know if they even offer the ability to send the manufacturer a block and have a cylinder re-sprayed. I doubt it.

  29. Danny Turnpaugh Says:

    I don’t like fords C clamp headlights as a truck coming at me with 4 headlights on about blinds me since some lights aren’t aimed properly. Seems like a lot of people in my town are driving with hi beams on and don’t it cause they never look at there dash to see the indicator.

  30. JC Says:

    A buddy of mine does headlamp “WORK” (to be vague), on Fords, including these lights.

  31. cwolf Says:

    Many years ago, I was taught how to spray weld. I forget the correct name for the process but the end results were unbelievable! The only weld that came close was TIG stainless… with a lot of practice. If the Heller process is like what I have experienced, I doubt any dealer would be dumb enough to invest in the shop space, machines, training, ect. to make it worth while. I forget the rod I used so harness is an unknown, but 2 mm is not a lot of cushion. Agree? I expect no initial problems, but as the engine wears, the cyls ovate on the return stroke.
    I am a retired tradesman with an ME degree and have worked in unison with many engrs on the molecular side for over 15 years. I flaked/scraped, bored/honed more than my liking in my early days.
    If you find out the benefits of using the Heller process, please let me know. I think the benefits are geared more towards the boring and ability to add a harder wall material .

  32. Kit Gerhart Says:

    29,30 Doesn’t the entire thing light up, even on low beam?

  33. Terry Quinn Says:

    Yes, it is a mashup, including an article of cylinder coating at Nissan. I hope they do a better job than Chevrolet did in 1970 with the 2.3 liter aluminum engine with silica bore coating, which didn’t do well, and caused a lot of engine failures.

  34. Kit Gerhart Says:

    33 I had a BMW bike that had, I think, the same “nikasil” process as the Vega engine, and it did fine. The Vega’s problems were either process problems on the cylinder bores, or some other problem with cooling, or something.

  35. Larry D. Says:

    15 Let’s not make a simple issue complicated. I remember when I brought up the issue of devastatingly high inventories (and the billions and billions they cost), I am told it is not the automaker but the dealer that suffers etc etc.

    It does not really matter. Whenever an automaker’s vehicles (and usually it is a Detroit maker, or some niche loser like Fiat or Mitsu or whatever, and seldom or never Toyota, Honda, or the German Luxomakers), they lose billions and billions. Whether the automaker is the one who loses them, or the dealer, it is the consumer who will pay the ultimate price, as well as the workers who make these vehicles and are frequently laid off.

  36. Kit Gerhart Says:

    15,35 Should all of the factories just shut down for a couple months? Wouldn’t that have negative effects too?

  37. Larry D. Says:

    36 ask why doesn’t Toyota or Honda or M-B or BMW or Porsche and esp Subaru have such billion $ losses. They act BEFORE the problem. If some prefer not to plan ahead, and close the plants couple months, there will be a ton of negative effects, for all concerned (but not for their competition). An ounce of prevention is worth a pound of cure.

  38. Larry D. Says:

    35 PS and of course the shareholders, who were not a bunch of millionaires but many were middle class and working class owners, in the case of GM and Chrysler in 2008, lost ALL their $.

  39. Brett Cammack Says:

    If you want the *best* deal, hit the dealership during the last two hours of the last day of the Quarter and buy the last prior model year unit on the lot. I thought they were gonna cry… :)