AD #2805 – FCA Cuts Employee Pay; GM Tells Suppliers to Delay Refreshes; Hyundai Accent Impressions
March 31st, 2020 at 11:45am
Listen to “AD #2805 – FCA Cuts Employee Pay; GM Tells Suppliers to Delay Refreshes; Hyundai Accent Impressions” on Spreaker.
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Runtime: 9:42
0:07 FCA Cuts Employee Pay
0:44 Paris Auto Show Mostly Cancelled
1:04 Toyota Provides Shuttles in Thailand
1:29 JLR Deploys Vehicles for Emergency Response
1:51 Ford Keeps Mach-E Program Moving
2:44 Ford Not Sure When it Will Re-Open N.A. Plants
2:56 Ford Charges Ahead with Ventilator Production
3:29 GM Tells Suppliers to Delay Refreshes
4:31 Magna Explains Its Advanced Lighting Technology
7:29 BYD Developing New Battery
8:20 Hyundai Accent Impressions
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
FCA CUTS EMPLOYEE PAY
First it was Ford, then GM and now FCA is making pay cuts. CEO Mike Manley will have his pay cut 50% for three months starting tomorrow. The board of directors won’t get paid the remainder of their 2020 salaries and most salaried employees will be asked to take a temporary 20% pay cut. As I said when GM and Ford started this last week, automakers are in a rush to cut costs and pile up cash, but they’re still worried about running out of cash, even though they have tens of billions of dollars in the bank. It tells me they expect that the economic downturn caused by the virus will last a long time.
PARIS AUTO SHOW MOSTLY CANCELLED
And speaking of cuts, another auto show bites the dust. This time it’s the Paris auto show, which was scheduled to take place at the beginning of October. The main portion of the show has been cancelled, but organizers of some of the other events are trying to come up with ways to keep them going.
TOYOTA PROVIDES SHUTTLES FOR HOSPITALS IN THAILAND
Over in Thailand, Toyota is providing 10 shuttles for hospitals treating virus patients. The shuttles are free for doctors, nurses and other staff to use. The shuttles are connected, which will allow commuters to book seats and choose pick-up and drop off locations. And to ensure the shuttles are clean, they’ll be sanitized and they’ll also have air purification devices as well as seat covers that can be changed.
JLR DEPLOYS VEHICLES FOR EMERGENCY RESPONSE
And in a similar move, Jaguar Land Rover has deployed more than 160 vehicles globally to emergency response organizations. It gave nearly 60 vehicles from its press fleet to the British Red Cross to deliver food and medicine. It’s also lending its development and manufacturing knowhow to the UK government to help build medical equipment.
FORD KEEPS DEVELOPMENT OF THE MACH-E GOING AMID SHUTDOWN
Despite the shutdown there’s still work to do. And the Detroit News reports on how Ford is keeping the Mustang Mach-E program moving forward. The automaker is in its final stages of development on the EV and it plans to meet its fall launch deadline. But with development members no longer working alongside one another, they’ve had to find a way to make things work. There’s lots of video chats and emails, but some workers got to take prototypes home. While it’s hard to test something like the suspension, the developers are able to test the vehicle’s electronic architecture and software. That means they’re able to jump in the vehicle, flash a new calibration into the computer, drive around the block and see how systems reacted. They can then send that data to other team members. They also send lots of pictures and videos. A lot of the work the developers are doing now is going towards the base model’s final evaluations.
FORD NOT SURE WHEN IT WILL NOT RE-OPEN N.A. PLANTS
Ford had planned to re-open its North American plants in mid-April, but those plans have gone out the window. Those plants will not reopen now and Ford is not setting any date for when they will.
FORD CHARGES AHEAD WITH VENTILATOR PRODUCTION
Ford is also charging ahead to make ventilators together with GE. Ford says it will manufacture 50,000 ventilators in the next 100 days at its Rawsonville plant in Michigan with 500 paid UAW workers who are volunteering to make them. At full production they will make 7,200 a week. As you can see, the ramp up in production is impressive. And it underlines the critically important role that the automotive industry is playing in this crisis.
GM TELLS SUPPLIERS TO STOP WORK, BUT DON’T THROW THINGS OUT
Meanwhile GM told its suppliers that it is delaying all mid-cycle refreshes for trucks, SUVs and even the Corvette. Specifically, GM is telling it’s suppliers to:
1. Please STOP WORK on all pre-production tooling and pre-production part manufacturing
2. Please DO NOT SCRAP TOOLING: do not scrap pre-production tooling nor production tooling
3. Please DO NOT SCRAP MATERIAL for pre-production nor production components previously ordered
4. Expect to see updated pre-production purchase orders for these programs cancelling outstanding order requirements
This what we’ve learned about GM’s plans. No doubt every other automaker is doing the same thing. And no doubt the Tier 1’s are telling this to the Tier 2’s and so on down the line.
MAGNA EXPLAINS ITS ADVANCED LIGHTING DRIVING BEAM TECHNOLOGY
When it comes to advanced headlight technology, the U.S. is behind what’s allowed in Europe and China. One of those system’s is Magna’s Advanced Driving Beam technology, which is a glare-free high-beam. On Autoline After Hours, Cole Cunnien, the Global Director of Lighting at Magna Lighting explained how the technology works.
Cole Cunnien, Global Director of Lighting, Magna Lighting
“So in this demo we’re looking at a matrix array of LEDs, that are represented by the green, yellow and red, along the bottom. And the camera capturing the scenery on the top. So, green means the lamp is on, red means the LED is off and yellow is kind of a combination in between. So at most speeds they’re all off, your high beams are off. But as your speed increases, boom they come on automatically. The camera detects there’s nothing you’re going to glare, ‘oh wait, there’s a car ahead,’ so now selectively the LEDs are turned off and ramped down in a non-distracting manner. So, as to not provide any glare to the oncoming traffic. The idea here is to put as much lighting as you can in front of the driver, to allow that driver to see unforeseen obstacles, roadside hazards, pedestrians for example. Now one of the concerns that NHTSA, the regulatory bodies have is uncontrolled glare. And that’s a valid concern, we don’t want to cause anybody undue glare. But I would counter the argument that glare is not a safety concern, more of a comfort concern. We don’t have any statistical data on glare caused accidents. There’s no question that glare is discomfort. I hear a lot of people, friends in the public, the first thing they say is ‘oh, you’re one of those lighting guys. Well you tell those people to turn your LED headlights down. They’re just too dang bright!’ I say just don’t look at them and wait a little bit, it will pass.”
You can watch that show right now on our website or on our YouTube channel.
We’ve got a fascinating Autoline After Hours coming up Thursday with a guy who goes by the handle Montana Skeptic. We got howls of protest from all the Tesla fans who can’t stand anyone who criticizes Tesla. And there’s no doubt that Montana is very skeptical about Tesla. Some of you said we should be getting an analyst who is very pro Tesla, which is a good suggestion. We can do that, and we will. Our mission is to bring you all points of view on any automotive topic. And with that in mind, we hope you join Gary and me and David Welch from Bloomberg for some of the best insights into the automotive industry this Thursday at 3pm eastern time.
BYD DEVELOPING NEW BATTERY
Chinese automaker BYD is developing an interesting new battery, called Blade Battery. It’s a lithium iron phosphate pack that is said to have 50% more energy density than a conventional battery. And because it’s chemical structure is very stable it helps prevent thermal runaway. Blade Battery is also part of the crash structure of the vehicle. Not only is the pack fixed to the frame, each battery cell acts as its own support beam and aluminum honeycomb panels are bolted to the top and bottom of the pack. BYD says it has heated the battery to 572-degrees fahrenheit, shot a nail into it, overcharged it, crushed and bent it, without any fires or explosions. Blad Battery will first be used in the Han EV, which launches this June with a 375 mile range and 3.9 second 0 to 60 time.
HYUNDAI ACCENT IMPRESSIONS
This week I’ve had the chance to test drive the Hyundai Accent, though thanks to everything being shut down due to the coronavirus, I have to admit I did not put on as many miles as I normally would. The model I drove was the Accent Limited, which costs just over $20,000, making it one of the least expensive cars in the U.S. market. And yet, it comes well equipped, with features like Sirius XM radio with a 90 day trial, dual USB charging ports, an aux jack, automatic dimming headlamps, heated front seats, well, you get the picture. This is not some stripped down econobox. And that got me thinking. What is the main difference between a car like this and one that costs $40,000 more? There are a number of differences by the main one is road noise and wind noise in the passenger cabin. The Accent is not bad, but there is noticeable body boom. And if someone figures out how to make cheap cars as quiet as expensive ones, they’re going to get two tickets to paradise.
But that’s it for today, thanks for watching and please join us again tomorrow.
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Comments (38)
March 31st, 2020 at 12:19 pm
It would seem that GM should go ahead with the pickups, if the improvements of the interiors are part of the refresh. Maybe that is already done, though.
John, do you have any feel about how much it costs to build “quietness” into a car. The main reason I might consider a more expensive sedan than my Camry, would be for lower cabin noise. Do car companies deliberately make lower priced, and mainstream cars noisier than they need to be, to help sell Lexuses, Lincolns, and Cadillacs for big price premiums over Toyotas, Fords, and Chevys?
March 31st, 2020 at 12:37 pm
1
Heavier glass and more sound-deadening material seemingly. The difference between the 2006 Outlander and the 2016 is remarkable. It’s sooo much quieter in the ’16.
I’ve actually been meaning since we bought the ’06 to take out the seats and carpet then put down some ersatz DynaMat on the cabin floor. (butyl gutter repair tape is indistinguishable from DynaMat and much cheaper)
March 31st, 2020 at 12:39 pm
Its hard to believe that extra insulation, engine covers and all the various tools used to make a car quieter can equate to an extra 20K.
Give me 20k John and I will make that Hyundai quieter than a MB. A custom exhaust with wrap and a whole lot of Dynamat. That should do it. Some luxury vehicles use thicker glass so that would hard to get.
So does Ford and GM get to put their name on the ventilators they build? I’m not sure if the uneasy feeling I would get would be knowing Ford made my ventilator or knowing it was made in such a rush. Hopefully they do a great job.
Very cool battery BYD and sounds promising.
March 31st, 2020 at 12:41 pm
2 Good to know about the gutter repair. Thanks
March 31st, 2020 at 1:30 pm
I guess I’m not familiar with DynaMat, or gutter repair tape. While my Camry is reasonably quiet, much quieter than my Corvette, quieter would be nice. Maybe DynaMat or gutter tape in the wheel well areas could reduce road noise.
March 31st, 2020 at 1:31 pm
Two things headlamps are too expensive now to replace and a good sound system should cover any background noise. people replacing fogged headlamps are finding out it can cost them over a $1000 and who rides around without the sound system off as it comes on when you start the vehicle..
March 31st, 2020 at 1:48 pm
I used a type of DynaMat with an added heat shield foil on my MGC. Placed under the carpet and fire wall, it made a world of difference. Because of the 6 cyl. , the inside , specifically the floor, would get uncomfortably hot in the Summer. Feels much cooler and quieter now.
It is a bit pricey but worth the cost and effort.
March 31st, 2020 at 1:56 pm
Recall Buick’s focus on quiet interiors. Not sure it helped them in the US.
I recall an Asian company made one too quiet and drivers were not paying attention, so they added noise back?
And yes most folks like quiet interiors; see how folks reacted when EV makers were forced to introduce low-speed sounds for blind folks.
Medical devices normal have heavy validation requirements from the authorities. As a result the companies are very reluctant to change the software running the machines as it requires re-validation. Hence the auto companies will partner with an existing medical company. Though any change regulations might be skipped at the moment
Sad to see Auto shows go away as I want to see the electric/hybrid Corvette C8 specs!
March 31st, 2020 at 2:01 pm
Cole Cunningham needs his head examined. He may be in the head light business but he surely isn’t the “brightest bulb!”
His reply to don’t look at the bright lights until it passes is crazy. I would like to strap that guy to a chair and make him look into a strobe using his LEDs for 20 minutes.
Then have him back on the show and see if he feels the same way. Geesh!!!!
March 31st, 2020 at 2:10 pm
How are these paycuts going to hold up when the Big 3 all just signed new contracts with the UAW? I see a major lawsuit in the future if not contracts are worthless pieces of paper. If they said we need you to make short term concessions and once everything is back to normal ( if ever) you will get all that money back I don’t see how a worker could trust the company or the union.
March 31st, 2020 at 2:16 pm
@10 – The pay cuts apply to salary workers, not UAW.
March 31st, 2020 at 3:08 pm
if you find your car interior a little noisy,crank up the music : )
March 31st, 2020 at 3:22 pm
John, I can’t wait to see what Larry D. looks like when you have him on your Autoline After Hours show as the “analyst who is very pro Tesla”, should be an interesting experience for all of us.
March 31st, 2020 at 3:30 pm
12 Most of the time, I like car interiors quiet, so I can hear the music without playing it very loud. That’s good both for a more relaxed experience when driving, and for preservation of one’s hearing. Sometimes, when driving the Corvette, I don’t mind a little noise, but the standard exhaust is loud enough for me. You hear it when you “get on it,” but you don’t hear it much over the other noise at steady speed.
The best headlights are Hella 7 inch round H4 lights, with glass lenses. Unfortunately, the newest cars that will fit them are about 40 years old.
March 31st, 2020 at 4:00 pm
13) build ore
Not good. John could be sued for endangerment.
Once people see his face, everyone and their mothers will try to run him over as he walks to work.
Then again…….. hmmmmm.
March 31st, 2020 at 7:29 pm
A TSLA stock owner, I’ve never used any stock ‘analyst’, much less one who remains anonymous (the Internet version of a telemarketer.) I invest in: (1) companies that hire me, and (2) companies whose products and never lost money.
I nominate Cathie Wood of ARK Investment as she speaks clearly and has a technical approach that matches my engineering approach. There are others but Cathie speaks ‘engineering.’
Last year, I bough shares of TSLA in the $220-320 range. When the stock hit $420, I sold some to stick it to the SEC. As the price continued to go up, I sold small lots and paid off my Standard Range Plus Model 3 which is free and clear with just liability insurance.
March 31st, 2020 at 7:31 pm
Sorry, “(2) companies whose products I’ve bought . . .”
March 31st, 2020 at 7:51 pm
John, The Magna people are doing some interesting work with the lighting. But it would be nice if they could come up with a system to get the behemoth suvs and P/Us to lower their beam when they are tailgating you. Since the are so high, they can blind you as their lights hit your mirrors inside or outside! Or can designer just put the lights lower? Thanks and stay safe Bob
March 31st, 2020 at 8:11 pm
16 According to this, “Montana Skeptic’s” real name is Larry Fossi.
https://electrek.co/2018/07/24/tesla-troll-short-doxxed-oil-industry-musk-calls-boss/
April 1st, 2020 at 6:32 am
18 Good job outing the ‘perp’. If he is still heavily invested in the oil industry, his financial hard times will be even harder than shorting Tesla.
‘
April 1st, 2020 at 6:33 am
16 I looked up Kathy and she is a serious person, summa cum laude from her alma mater etc, BUT she must be the bulliest Tesla Bull out there. I know no other who predicts $7,000 and $10,000 a share for TSLA. Do you?
April 1st, 2020 at 6:45 am
13 The clown on AAH is NOT me. In fact, if you have been paying attention here, he must be the exact OPPOSITE of me and what I believe. His real name is Larry FOSSI, not D.
And this Larry F. guy must be having a very hard time right now, and for the foreseeable future, if it is true he is heavily invested in the OIL industry, let alone recklessly shorting TESLA before.
April 1st, 2020 at 6:47 am
13 Enjoy the AAH. I bet the program, with Larry F in the panel, will be of as high a quality as the ones featuring ELIO motors and the ACHATES snake oil salesmen, who (surprise!) fooled the Feds or CA into even sponsoring their nonsense.
April 1st, 2020 at 6:50 am
From Kit’s very informative link:
“One of Tesla’s biggest anonymous trolls/shorts has been doxxed as an investment manager heavily invested in the oil industry.
He has now deleted his Twitter account, which he used to promote his blog posts about Tesla and attack anyone saying anything that could be perceived as positive on Tesla, after Tesla CEO Elon Musk reportedly called his boss to complain about his behavior.
We are talking about ‘Montana Skeptic’ who has been using Seeking Alpha, a financial blog aggregator, and Twitter to push the bear case on Tesla for the past 3 years.
Hiding behind his anonymous persona on social media, Montana Skeptic went beyond just pushing the bear case.
He also used the platforms to send insults and attacks to Tesla bulls, bloggers, YouTubers, and reporters discussing anything that he saw as potentially being positive for Tesla, including myself on numerous occasions to the point where I had to block him.
To his credit, he disclosed that he was holding a short position on Tesla and therefore, he benefits from the company’s stock price going down.”
I called this guy “the perp” before I saw the above. Bull’s eye!!!!
April 1st, 2020 at 6:53 am
@ #11 Drew , That’s not how I took the article in the report a couple days back that said GM is cutting 6500 and cutting everyone’s pay 20% and the top execs will take a even higher cut. So Maybe I read that wrong , but the term EVERYONE seems pretty inclusive that it applies to ALL employees. Maybe someone at Autoline can clarify exactly who this does and doesn’t cover.
April 1st, 2020 at 7:01 am
1 The Camry is noisy? I never heard of that one before. The Corolla, maybe. Also a former Accord model I really liked was criticized as noisy but I doubt I would care.
The 2003 Camry I rented in Denver was almost 100% noiseless, you would do 100 MPH without really be aware of it because of its quietness and smoothness. It was the exact opposite (and far superior) than the god-awful Focus I had to rent just the previous day in another city, both low-mile Hertz models.
April 1st, 2020 at 7:04 am
23 Seems your guest, John, is severely ethically (and possibly legally) challenged. And I don’t mind if you go ahead and again mis-characterize my post as “howling”, as you did the posts of those who appreciate Tesla’s achievements yesterday.
April 1st, 2020 at 7:32 am
Re the Hyundai Accent.
I have rented the larger (but still tiny and tinny) Elantra for a week and it was really a poor vehicle.
The question you should ask, John, is not to compare it to a car twice its price, for most Accent buyers will NOT have $40k to spend on their next vehicle.
The question is, what other car could you buy for the same ‘so low’ $20,000?
And you can buy the BEST CARS IN THE WORLD with LESS than $20k, if the buyer only did not require that their next car has that “new car smell”, which I guess any perfume maker can concoct and sell you for $5.
I am really tempted to give you a list of 100 cars, far superior to ANY Hyundai, you can buy for $20,000 and enjoy trouble-free for 10 years.
Interested????
April 1st, 2020 at 7:51 am
If you live close to this gas station,
Shell
11558 N 1900 Rd & I-40
Sayre, OK
You will pay $1.09 per gallon unleaded now
AND even less later.
sub-dollar gas is around the corner.
April 1st, 2020 at 8:11 am
28 a few weeks ago diesel as as cheap as gas in this area. But in the OK station above, Diesel is TWICE as expensive as gas now, under the CV, where professional trucks do just as many miles, but cars do half the miles they used to do.
REFINERIES, if they have not already done so, should have more of their capacity turned to making diesel fuel and less making gasoline. This should support gas prices and lower diesel ones.
April 1st, 2020 at 9:01 am
25 The Camry is not noisy, but quieter would be nice. Yeah, it’s certainly quieter than a Focus or Corolla, but not as quiet as a similar Lexus ES, or an E-Class.
April 1st, 2020 at 9:10 am
28 It looks like Florida still has expensive gas, not that it matters much to most people. Diesel is still ~30% more than regular, $2.60 vs $1.96 at the cheapest “name brand” stations.
April 1st, 2020 at 9:18 am
28 yea interesting to see how low will gas prices go. I wonder how much is due to Russia and how much is due to everything being shutdown.
April 1st, 2020 at 9:22 am
33 It can’t go too much lower, even if the crude is free, with the cost of refining to make gas, and the tax.
Apparently the refineries don’t have the capacity to make more diesel, unless they are just “sticking it to” the commercial truck operators.
April 1st, 2020 at 9:47 am
One of my profs worked for a refinery. As I recall, oil is made up of hydrocarbons. When heated to their boiling point(s), jet fuel, gasoline and diesel is had from the various levels when condensed. So I don’t think only diesel can be made in the refining process. Some of the larger molecules can be reprocessed to make a lower grade gas, so maybe this would apply to diesel as well, but a mix of products still exists.
April 1st, 2020 at 10:25 am
35 In the “old days,” oil refining consisted only of fractional distillation to get products from propane and butane, to asphalt, and things in between like kerosene and gasoline. For years, the demand for gasoline far outstripped the amount you’d get from the basic distillation process, and catalytic cracking was developed to produce more gasoline. I don’t know if there’d be an easy way to get more diesel/kerosene/jet fuel type stuff. You think there would be plenty of diesel fuel now, since it is about the same as jet fuel, and most of the airplanes are on the ground.
April 1st, 2020 at 11:29 am
32
Regular is $1.69 at a station about a mile from Rancho Cammack. Most others are about 20 cents higher than that.
April 8th, 2020 at 3:16 pm
Have you ever approached auto insurance companies such as Liberty Mutual to see if they would sponsor Autoline?