This is Autoline Daily reporting on the global automotive industry.
MITSUBISHI MOVES NORTH AMERICAN HQ TO TN
Mitsubishi is moving its North American headquarters out of California and into Tennessee. Nissan, which owns a stake in Mitsubishi, also has its North American headquarters located in Tennessee, so this move isn’t too surprising. Mitsubishi, which has been in California since 1988, will begin moving in August and expects to finish by the end of the year.
CARMAKERS IN EUROPE FACE BIG FINES
Carmakers in Europe face big fines due to stricter emission rules for passenger vehicles that are upcoming. By 2021, automakers must cut their fleet average emissions to 95 grams of CO2 per kilometer. And according to a new study from AlixPartners, Volkswagen and FCA will be rocked hardest by the new targets. VW faces a fine of over $2 billion and FCA over $800 million, if they don’t comply. Volvo and Toyota are the only major automakers that don’t face fines. While VW says it will comply with the new rules, FCA will likely have to pay the fine or buy emission credits from other automakers to meet the targets.
HYUNDAI TO OFFER LYFT RIDES TO CUSTOMERS
Hyundai is launching a new service in the U.S. to offer customers Lyft rides while their car is being worked on. Dealers must subscribe to Hailer, an app developed by CDK Global and Lyft, to offer customers the ride. Once the service is complete, the dealer will arrange another Lyft ride to bring the customer back. The dealer can decide whether to charge customers for the ride or add the cost to their service bill. The customer does not have to have the Lyft app to get a ride.
FORD PUMA NOW A CROSSOVER
The Ford Puma is back for Europe, but has morphed from a compact coupe into a compact crossover. The only thing tying the two vehicles together is the shape of the headlights. Under the hood will be a range of gasoline and diesel engines, including a mild-hybrid option that comes in two power outputs. That system combines a 1.0L 3-cylinder EcoBoost engine with a belt-driven starter/generator. The Puma rides on Ford’s B-car platform, which also underpins the Fiesta, but features a new, stiffer twist-beam rear suspension, larger shock absorbers, stiffer suspension bushings and optimized suspension top mounts. Interior highlights include a 12.3-inch digital instrument cluster and an 8-inch tablet-like display screen mounted in the center of the dash. The new Puma will go on sale at the end of the year.
BMW PACKS EV TECH INTO A 5 SERIES
BMW, like most automakers, is making a strong push into electrification and is showing off what it’s capable of. The Power BEV is a 3-motor electric vehicle with over 700-horsepower that can do 0 to 100 km/h in under 3-seconds, all wrapped up in 5 Series skin. By packing all its EV technology into a 5 Series, which engineers were able to install without compromising passenger space, it makes it easier for BMW to compare the setup to other possible powertrains. The motors, one mounted in the front and the other two on the rear axle, are entirely free of rare earths and allowed the automaker to learn about tuning a vehicle with electronic torque vectoring. And we’ll start to see some of this technology soon. One of these rare earth-less motors will make its way into the upcoming iX3.
And hey, don’t forget about Autoline After Hours tomorrow. Joining John and Gary are James Martin from IHS Markit and Lindsay Brooke from SAE Engineering. Come along for the ride when we go live at 3pm eastern time on our website or YouTube channel.
BMW DRAGS FEET ON BATTERY CELL PRODUCTION
The German government is pushing automakers to establish battery cell production in Europe, in order to keep up with Asian rivals and to meet future environmental goals. But Bloomberg reports BMW is dragging its feet on the goals because it doesn’t believe that all carmakers should be involved in making their own cells. The company would rather work with a consortium of companies already producing the cells. And we think BMW has a point. Why invest in lithium-ion when that technology will probably be obsolete within 10 years? But not all German automakers agree with BMW. Earlier this year, Volkswagen partnered with Northvolt to produce battery cells in Germany.
JAPANESE DOMINATE ‘AMERICAN-MADE INDEX’
Cars.com released its annual “American-Made Index and found that Japanese automakers dominate the list. The study looked at assembly location, parts sourcing, factory employment relative to sales and sourcing of engines and transmissions. It found that 9 of the 15 most American made vehicles on the list are built by Toyota or Honda. But this ranking ignores where vehicles were designed, engineered and developed. Toyota and Honda develop their trucks and SUVs in the U.S. but their cars are typically done in Japan.
And a quick programming note before I sign off. Autoline Daily will be off all next week because we’re taking a break for the July 4th holiday.
But that’s it for today, thanks for watching and please join us again tomorrow.
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Comments (29)
June 26th, 2019 at 12:09 pm
Sean, quick!! Edit the last item on your news. You didn’t mention the world perfect, almighty ‘T’ company in your report. Don’t you know they have to be always mentioned?
I expect some name calling, capital letters and misspelling coming up. You were warned.
June 26th, 2019 at 12:11 pm
Four years ago, Sandy Munro called the BMW i3 the “Model T” of our time. The BMW promptly chased off the engineers who built it. Since then, they have gone retro and it shows.
I’m reminded of a going away party I attended in the 1980s sitting the back when I realized ‘the wrong people are leaving.’
June 26th, 2019 at 12:20 pm
I certainly hope Hyundai decides to do the right thing by the customer and simply eat the cost of these Lyft rides themselves.
The dealers will already be helped by not having to keep new cars on hand to use as loaners, then turn around after one to two years and sell those loaners off as pre-owned. But the dealers will also save on insuring and maintaining those fleets. They shouldn’t try and make it seem as though they are doing the customers some huge favor by hailing the Lyft rides, unless they are also footing the bill.
June 26th, 2019 at 12:26 pm
That Puma really looks good! If it comes to the US, I hope it has AWD. I wife’s HR-V will need replacing in the next couple years and that vehicle would be on a very short list (especially in that shade of blue)!
June 26th, 2019 at 12:33 pm
4 Isn’t Ecosport about the same thing?
June 26th, 2019 at 12:51 pm
#3 – Even if Hyundai does not explicitly list the cost for the Lyft/Uber rides, the customer will be paying for them in the total price they pay for service.
Goes along with the “free shipping” we see on items purchased on-line. It’s buried in the price. Once again, it’s rare to find a “free lunch”.
June 26th, 2019 at 1:16 pm
2 I know you have an i3, but Munro was 100% wrong to call it the EV model T. This OBVIOUSLY is the game changing Model 3, and it even sounds like the other name. You own one of these too, so you know.
June 26th, 2019 at 1:19 pm
what, if any, value is in the name “Hyundai” as far as autos are concerned? For me, next to NOTHING. They bring nothing to the game, except maybe slightly lower prices vs far better competitors in their segment. If I ever wanted to buy a car like the ones they make, I’d buy a Honda, and if no Honda fit the profile, a Toyota or even a VW. And of course if we are talking about their 10 failed attempts to have luxury cars, there there is even less hesitation. Porsche, M-B, or BMW any time, even an LS 460.
June 26th, 2019 at 2:07 pm
Not surprising that Mitsubishi is moving to TN. They are a low or no income tax state. People are fleeing from states like Cali,NY,NJ,and IL in the thousands as they try to get away from paying for all those states “freebies”.As those states continue to transform into Socialist utopias those with the means and ability are escaping.
June 26th, 2019 at 2:09 pm
The Puma looks to be the size of the Hyundai Kona. The ecosport is bigger.
June 26th, 2019 at 2:28 pm
If you look at California traffic it a myth that people are fleeing the state. Housing starts and traffic are still increasing. You get what you pay for where you decide to live.
June 26th, 2019 at 2:46 pm
10 Huh? Kona is longer and wider than Ecosport. Kona is a little lower.
9 Mitsubishi is moving to Tennessee, because they are partnered with Nissan, who has been in Tenn for years. People, including myself, are fleeing Indiana, Illinois, New York, New Jersey, Michigan, and some other states, to get away from the crappy winter weather.
Here’s an actual chart of states people are moving from, and to:
https://www.realtor.com/news/trends/the-surprising-states-people-are-moving-to-and-from/
June 26th, 2019 at 3:11 pm
Did The trunk space suffer in the EV conversion of the BMW 5-Series?
June 26th, 2019 at 3:26 pm
7 Wasn’t the i3 mainly an exercise in the use of new materials?
June 26th, 2019 at 3:44 pm
2 I find that nonsense by Munro ( that the i3 is the EV model T) quite disturbing, far more disturbing than his earlier critical view of the Model 3, and then only a month or so later, its glowing endoresment.
I don’t think I will take what he says seriously in the Future.
June 26th, 2019 at 3:45 pm
Mitsubishi should move to Mississippi. Rhymes better too.
June 26th, 2019 at 4:10 pm
https://www.youtube.com/watch?v=XU4-7e1iiYc
Yesterday I posted Doug De Muro’s take on the E38 (1995-2001) 7 Series, which he claimed was the best sedan ever or something, but gave a total score of 53. This is his review of the 2020 mid-range 750iL (not the V12 760) which still starts at 115k and while he is not thrilled by it, it gets a total score of 64. (asI said his grading favors newer cars).
In 2026, I could get this 2020 car for $15k, which will probably be half the price of the Nissan Versa in 2026. But should I? The awful grille alone is a deal killer.
June 26th, 2019 at 4:15 pm
https://www.youtube.com/watch?v=-62Dr1JgAh4
interestingly, the car Doug bought for himself was an 2012 E class for $44k, CPO w warranty. It is also a 500+ HP AMG E63, and a WAGON.
June 26th, 2019 at 4:27 pm
https://www.youtube.com/watch?v=EV8zzGPdYXc
And this is a review of my 2008 E Bluetec diesel, for comparison
June 26th, 2019 at 5:08 pm
19 That’s a great car, from back when M-B would sell we Americans E wagons without 4wd.
June 26th, 2019 at 5:16 pm
#20 should have referenced 18, about the 2012 AMG E-Class wagon.
17 The Genesis G90 must be better than the “best luxury sedan ever,” as it got a 61. Yeah, Doug’s point scores don’t seem to make much sense, but his videos are interesting.
June 26th, 2019 at 5:18 pm
The video about the G90:
https://youtu.be/o8b5EnnbRLw
He really made fun of some of the gimmicks, with good reason.
June 26th, 2019 at 8:56 pm
As for the Cars.com AMI report, I have one of those 2019 Jeep Cherokees (Limited model). My Monrony shows 69% US/Canadian content and 20% Mexican for major parts content. Engine and transmission U.S. It was between getting a Cherokee or a Compass. The more powerful V-6 decided it, but I can’t deny that the Compass being assembled in Mexico was a factor. I am currently thinking about replacing our second vehicle with a Hemi powered Jeep Grand Cherokee since it would be assembled right nearby in downtown Detroit. But, checking a typical sticker, I see the legendary Hemi is from Mexico! And, Larry, I looked at what Cars.com had to say, but no Tesla report. WTH?
June 26th, 2019 at 8:56 pm
As for the Cars.com AMI report, I have one of those 2019 Jeep Cherokees (Limited model). My Monrony shows 69% US/Canadian content and 20% Mexican for major parts content. Engine and transmission U.S. It was between getting a Cherokee or a Compass. The more powerful V-6 decided it, but I can’t deny that the Compass being assembled in Mexico was a factor. I am currently thinking about replacing our second vehicle with a Hemi powered Jeep Grand Cherokee since it would be assembled right nearby in downtown Detroit. But, checking a typical sticker, I see the legendary Hemi is from Mexico! And, Larry, I looked at what Cars.com had to say, but no Tesla report. WTH?
June 26th, 2019 at 8:57 pm
Sorry, must have hit the Submit twice. Didn’t mean to.
June 27th, 2019 at 4:10 am
21 His scoring method puts too much weight on recent options, which makes the oldies get lower scores, even though he named the 95-01 E38 the best lux sedan ever. Add the much higher HP numbers of new luxury cars, and their “Doug scores” get even higher.
I guess new car dealers can use his scores to justify paying $115k for the ugly-grilled 750, and their buyers to not feel like total fools for paying said $115k.
June 27th, 2019 at 6:23 am
21, 22, if you compare Doug’s scores of a 2020 Genesis 90 costing $75k and a 2001 BMW 750iL V12 which costs only $5k or less,
so you can buy a FLEET OF FIFTEEN of them for the same $ you paid for the Hyundai, if Doug omits this huge fact from the comparison, he is really dishonest.
So the correct comparison is between a $4k 1998 740iL like mine, which was is book value when donated in June 2017, and the 100k mile Corolla sedan our handyman just bought for $3.5k Euros.
June 27th, 2019 at 9:36 am
1 “BLUCHER!”
Now make that frightened horse sound.
June 27th, 2019 at 9:53 am
BMW dragging their feet on battery production is probably a good decision. If its an expensive investment to produce your own batteries and if each manufacturer attempts to do that you have lots of small plants producing small volume. Obviously makes sense to let a Tier supplier make the investment and produce large quantity of batteries for many manufacturers. Especially if its a technology that has a high probability of changing very soon like batteries do. So yeah you pay a little more for the battery but ovoid the huge loss when that technology is obsolete.
I think many of the manufacturers would be wiser to use this approach for EV and AV technology.
Kind of like when flat screen TVs first came out. Who knows who made the first one or even cares, but once developed every manufacturer had one available and the cost to buy dropped like a rock. So that huge investment to have AV might be a plug and play system you’ll buy for a fraction of the investment. IMO