AD #2646 – Volkswagen Golf R Impressions, U.S. Sales Slip in July, Ford Beefs Up Power Stroke Diesel

August 2nd, 2019 at 11:43am

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Listen to “AD #2646 – Volkswagen Golf R Impressions, U.S. Sales Slip in July, Ford Beefs Up Power Stroke Diesel” on Spreaker.

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Runtime: 9:02

0:07 U.S. Sales Slip in July
0:27 Super Lux Segment Hits Headwinds
1:20 Tesla Cuts R&D, Capex
2:23 GM Wants EV Partners
2:48 MINI Could Exit Britain
3:42 OEMs Struggle to Make Profit on New Tech
5:17 Ford Beefs Up Power Stroke Diesel
6:39 VW Golf R Impressions

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19 Comments to “AD #2646 – Volkswagen Golf R Impressions, U.S. Sales Slip in July, Ford Beefs Up Power Stroke Diesel”

  1. Drew Says:

    Minor nit. The F-Series photo in the Golf R video is a SuperDuty, not an F-150..

  2. Albemarle Says:

    It’s pretty obvious that the auto industry is in a profit squeeze. As an industry, it’s high cost of entry and low margins. The stock market has realized that for decades.

    So now they spend billions on electrification and AV. And the companies that spent early hoping to get a lead, just wasted more money.

    If they had waited, not wasting money on very very expensive and difficult problems, they would be a lot healthier. And they won’t be left behind. So many other companies are spending the R&D, that in a few years the penny will drop, as it has at GM with EVs. These companies suddenly wake up, notice they will never recover these costs, and look for others to sell the technology too. And so the turtle wins the profit race, before, now and in the future.

    Not as much fun for the company but a pile more fun for shareholders. Unfortunately the industry is so risk averse they would rather waste billions.

  3. Larry D. Says:

    If you raced that stupid truck on a track with the Golf R, John, I would bet you could entice it to roll over.

    Re sales, GM, Ford, FCA (and Tesla) don’t report monthly sales, only quarterly. They account for half the market, so you cannot guess the SAAR unless you have accurate sales numbers for them too. But we do have July sales from all other makers, accurately, and many, even Hyundai, and of course Honda, TOyota, Subaru and the VW group, were up.

    Re Tesla profitability and R&D. Tesla sure got its $s worth from its R&D, while GM sure has not. The way to Tesla being profitable is to increase its sales of its EXISTING excellent models by finding ways to sell them to “Jerk States” like MI who do not allow it even to repair them, by selling them in CHina, and by building a GigaFactory in Europe, which is really ripe for EVs now,

    Maserati. I cannot believe that this utter loser and maker of LEMONS (Literally), not just awfully poorly made cars, is still alive. COuld it be the deep pockets of FIAT that prop it up?

    And as far as the Brit auto industry, there HAS NOT BEEN ONE since the 70s. All they had left is TRANSPLANTS making GMs, Fords, MINIS for BMW, etc. No mainstream British Mass Producer of cars or trucks. Even JAG and LAND ROVER are owned by….Indian TATA, of the TATA NANO Infamy. What will we see next?

  4. Larry D. Says:

    Oh, and by the way, can anybody tell me what, if anything, of value did this guy from Alix Partners ever say in his interminable, low-voice mumbling (apparently to himself?)? WHat did he say? I believe he said NOTHING. Which is actually better than the usual failed predictions from Alix Partners and the other professional fortune-tellers and psychics.

  5. Kit Gerhart Says:

    In addition to Nedcar, Magna-Steyr has built MINIs for BMW, including Countryman, and the Paceman we discussed a few days ago, that should probably have never been built.

  6. Kit Gerhart Says:

    3 There was a Brit auto industry, sort of, until the mid-1990s, when BMW bought Rover group. Yeah, the “home grown” British car companies had been in trouble for a long time, even as far back as the early ’70s when I was in Scotland, and BMC and Leyland Group had recently become British Leyland.

  7. Larry D. Says:

    6 That British Leyland was the kiss of death for the local mass-produced auto industry. Happens every time clueless Government sticks its nose in business.

  8. buildmore2doors Says:

    Hey John,
    You know what would make that Golf R even more of a sporty car? That’s right, two less doors, which would make it also lighter, better looking and less like a grocery getter, cheaper, less complicated, and even safer, since when you look over your left shoulder to merge with traffic you can actually see the lane next to you since you don’t have the B pillar in your sight line because two door cars usually have a longer drivers door than 4 doors, which also makes it easier for entry/egress. Did I mention I like two doors?

  9. Drew Says:

    @8 – Give me a modern Scirocco/Corrado.

  10. Kit Gerhart Says:

    8 Yeah, it’s kind of sad. VW no longer sells any 3-door Golfs in the US, but, of course, they are probably sold everywhere else in the world.

  11. Bert B. Says:

    Great job, John – as usual!

    It seems you and Sean really enjoy your work – keep it up!

  12. Kit Gerhart Says:

    8,10 The US is a sorry place for vehicle buyers who like cars, rather than trucks. The choice is very limited.

  13. XA351GT Says:

    Kit @ #10 another example of the thinkers at auto companies deciding what we want to buy. They take away all the choices and then say ” see no one wanted them” Kind of like Ford’s asinine decision to stop building all cars ,but the Mustang. I remember in the 80s when they forced sedans down everyone throats and said no one wants coupes anymore. People did still want coupes maybe just not what they were offering. Bottom line is it made it easier for them to offer only a single body style per model instead of 3 to 4. I remember when you could buy a coupe,sedan, convertible or wagon of almost every model offered. Just as they decide FWD is what everyone wants even though many were happy with RWD they shoved down our throats, Then when that wasn’t enough it was AWD . Mini vans now CUV& SUVs . Whatever they feel we should be driving is what they offer . hen they do offer what you really want they make it so expensive you can’t afford it.

  14. ChuckGrenci Says:

    12, XA
    I don’t think it is that easy. There is such a lag before conception, production and availability (years in most cases) that it is not easy to have the proper product for each and every consumer. And as you know some product is actually mandated by other than the consumer or manufacturer. A lot of the time it is the “tail wagging the dog”.

  15. Lambo2015 Says:

    12 Market trends determine what is being offered and that too can be altered by regulations. Roll-over requirements have just about killed the convertible. Fuel standards is what pushed FWD to garner more efficiency not the other way around. People stopped buying station wagons as soon as Chrysler came out with the minivan. That was Chrysler tapping into a huge market which became very profitable for them. Not Chrysler determining what people should drive. Once everyone wanted them it no longer made sense to make station wagons for the few sales that were left. Same goes for sedans as people are buying the CUVs and crossovers cause they want them.
    If manufacturers could force people to buy what they make then the EVs would not be struggling to sell. Just cause they make it doesn’t mean it drives a market. Sales drive trends not the other way around.

  16. Lambo2015 Says:

    15 my response was for 13

  17. Larry D. Says:

    12 Not true, despite the 2 to 1 sales of ‘light trucks’, there are 1,000s of models on sale, about half or more of them slow-selling cars (for the most part).

    Today I had to drive to the capital again and saw two “Corolla Hatchbacks”, one was a hybrid and I saw it well, the other a regular ICE. They looked good, substantial, between a 5 door hatch and a wagon, sort of like an Audi 3 5 door. The exterior styling was smooth from the front and the sides. The US Prius is about 8″ longer, but i bet most of them are overhangs and pointed ends so interior space should be about the same for both.

    I also saw a red VW ‘vehicle’ with the name “CADDY” on the back, it had the front of a typical VW Golf or Polo, and then it bulges in all dimensions behind the front seats into a huge, ugly bubble thing that is bloated and wider than the front.

  18. Kit Gerhart Says:

    15 Fuel efficiency, plus packaging efficiency, plus better traction on snow brought on greater use of FWD.

    As I’ve mentioned before, the standaeization of rules between Western Europe and North American would help fix the dismal variety of car offerings in the US. It would be worth it to M-B to sell 2500 C-Class wagons in the US, if they could sell the same exact ones as are sold in Germany.

  19. Larry D. Says:

    BTW, while the Hyundai group did fine in July US Sales, selling 8,000 units more than last July, its “Genesis” division, ALL its models together, sold a mere 1,586 units.

    For those of you that follow US auto sales numbers, these are embarrassingly low, tiny numbers, EVEN if ONE model, the FAILED (100%) 3-series fighter G70, accounted for all these measly 1,586.

    And this is despite all the silly “EMployee of the month” awards the auto press flooded the G 70 with!!!

    To further enlighten those not familiar with typical sales numbers:

    The 3 series used to sell about 10,000-15,000 units a month.

    There were about 20 attempts by different makers to make a ’3 series killer’, and all failed miserably, except one, the AWESOME Model 3 by the amateurs from TESLA, which routinely sells 14,000-22,000 units (BY ITSELF) PER MONTH.

    As they say, “If at first you don;t succeed, try, try again” But in the Case of Hyundai, they have tried 15 times to sell an allegedly luxury car to the US buyers and every time they failed, miserably.

    I am curious how John, Sean, and the regulars here comment on the above Hyundai Group Luxury DEBACLE.