AD #2940 – All-New Cadillac Escalade Is a Masterpiece; JLR Considering Lineup Cuts; Tesla Ends Return Policy
October 19th, 2020 at 11:48am
Listen to “AD #2940 – All-New Cadillac Escalade Is a Masterpiece; JLR Considering Lineup Cuts; Tesla Ends Return Policy” on Spreaker.
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Runtime: 8:38
0:07 Tesla Updates Model 3
0:38 Tesla Ends Return Policy
1:01 Tesla Shipping Model 3s From China to Europe
1:40 Quality Issues Costing Hyundai & Kia
2:10 SEAT Introduces Leon Plug-In Hybrid
3:35 Riders Give Autonomous Shuttle Thumbs Up
4:10 VW’s Traton Raises Bid for Navistar
4:56 JLR Considering Cuts to Lineup
5:58 All-New Cadillac Escalade Is a Masterpiece
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
TESLA UPDATES MODEL 3
Tesla is in the news today. First up, it officially launched the refreshed version of the Model 3. Some of the updates for 2021 include, new wheels, a new center console, powered trunk and efficiency improvements that boosts the range for all versions of the Model 3. In fact, all models in Tesla’s lineup are getting increased range through an over-the-air software update. Tesla says the update improves the efficiency of the motors and climate control system, which boosts range.
TESLA ENDS RETURN POLICY
Tesla ended its ‘no questions asked’ 7-day return policy. If there was no damage to the vehicle and it had less than 1,000 miles, you could return the vehicle for a full refund. Electrek reports that customers will now be referred to Tesla’s service department if they want to return a vehicle. Tesla didn’t reveal why it ended the policy but no doubt it was extremely expensive.
TESLA SHIPPING MODEL 3s FROM CHINA TO EUROPE
Reuters reports that Tesla is going to start exporting Chinese-made Model 3s to Europe. That’s a curious move, and makes us wonder if it’s running into problems selling cars in China. Tesla’s gigafactory in Shanghai can make about 18,000 cars a month, but it’s only selling a little over 11,000 a month. So It will export Model 3s to 10 different countries in Europe. Here’s our Autoline Insight. Tesla will not export any Chinese made cars to the U.S. That’s because the U.S. now hits any Chinese-made car with a 27.5% import tax. Europe has a 10% import tax.
QUALITY ISSUES COSTING HYUNDAI & KIA
Quality issues at Hyundai and Kia are costing the automakers big time. The Group said it has to pay out over $2.9 billion related to problems with its Theta II GDI engines, which resulted in the recall of nearly 1.7 million vehicles. And this is not even the first payout due to the issue. Reuters reports the total now stands at almost $5 billion. The impact of the costs will be reflected in the automaker’s third-quarter earnings.
SEAT INTRODUCES LEON PLUG-IN HYBRID
Spanish automaker, SEAT, is following the trend of converting vehicles into plug-in hybrids. This is the Leon e-Hybrid, which pairs an 85-kW electric motor and 13-kWh battery pack with the car’s gasoline engine. Together they combine for 205 horsepower and provide up to 64 kilometers or roughly 40 miles of all-electric range. With so many PHEVs entering the European market recently, the segment is up by 134% in the second quarter of this year, according to the European Automobile Manufacturers Association.
RIDERS GIVE AUTONOMOUS SHUTTLE THUMBS UP
Looks like the public is ready for AVs. The University of Michigan operated autonomous shuttles on planned routes and with a safety driver. They provided rides to 6,000 passengers and according to a new study, 86% of those surveyed said they trusted the shuttles. Interestingly, the survey also included pedestrians, bicyclists and drivers who did not ride the shuttles, and yet 66% of them said they trusted autonomous technology. But there is room for improvement. Passengers said the shuttles are slow, and are too cautious at intersections.
VW RAISES BID FOR NAVISTAR
Back in September we reported that VW’s truck unit, Traton, had increased its bid to buy out truck maker Navistar. But Navistar rejected the $43 per share offer because it said it undervalued the company. Then last week, Wednesday, Traton said its bid would expire by Friday if it was not accepted. Well it looks like the folks at Navistar called their bluff. Traton again announced it’s increasing its deal to $44.50 per share, which translates to about $3.7 billion for the shares it doesn’t already own. Traton currently controls a nearly 17% stake in Navistar. Traton says Navistar has agreed to the new deal, pending a review.
JLR CONSIDERING CUTS TO LINEUP
Jaguar Land Rover’s new CEO, Thierry Bollore, is taking an axe to his product lineup. The Sunday Times reports that six current and planned models could be dropped, including the upcoming electric version of the Jaguar XJ. Also at risk are the XE and XF sedans and the Land Rover Discovery Sport. Under former CEO, Ralph Speth, the company expanded the lineup, in hopes to sell 1 million vehicles a year. But its sales slumped in China and the U.S./China trade war resulted in big losses and job cuts. Jaguar just does not have the means to support such a big lineup, so it’s going to get rid of models as a way to boost its profits.
ALL-NEW CADILLAC ESCALADE IS A MASTERPIECE
The all-new Cadillac Escalade made its way through the Autoline Garage last week and all we can say is that it is a masterpiece of design, engineering and manufacturing. There is so much we could talk about, but we only have time to hit the highlights so let’s start with craftsmanship. Here’s an example that really shows what we’re talking about. The front end comes to a point in the center with a crease that runs vertically down from the hood, through the grille, the Cadillac crest, the front fascia and the splitter. That’s a lot of different parts to assemble, but they match up exactly. Inside, the cabin is extremely detailed, with a dizzying combination of different parts on the doors, the instrument panel and the center console. That kind of complexity can open the door for mistakes and misalignments. Instead, it was beautifully put together. While Cadillac raves about its 36 inches of OLED screens, and there’s a lot to rave about, what really impressed us was the UX–the user interface for the infotainment system. It may be the best in the business. It was so intuitive to figure out and so easy to use that we never ran into what we call an RTFM problem–read the effing manual. And we can rave about the AKG sound system, but hopefully you’ll get a chance to hear it yourself because words don’t do it justice. Out on the road the Escalade provides amazing isolation from the road. Same goes for wind noise. The ride is impressively smooth and quiet, even when you’re going over railroad crossings. That’s thanks to an air suspension with magnetic ride control, which can even tame giant 22-inch wheels and tires. The only complaint we have is that the 6.2 liter V8 only delivered about 14 miles to the gallon. You can also select the 3-liter Duramax diesel for no extra charge, which ought to bump that up to 20 MPGs. We drove a Platinum Escalade ESV 4-wheel-drive Sport that was priced just a tick under $113,000. And that didn’t include Super Cruise which will add another $2,500. That’s a lot of money, but Cadillac knows its Escalade customers and will probably sell everyone it can make.
But that brings us to the end of today’s show, thanks for watching.
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Comments (24)
October 19th, 2020 at 12:23 pm
Maybe Tesla is doing model years now like other regular car companies?
EV competition in Europe is heating up. Especially in Norway with the incentives. Will be interesting if the Chinese made cars are different from the Fremont ones; Obviously much newer factory.
Escalade looks great and is where the money is. Feel sorry for folks who bought the prior one. Given the changes I would be tempted to wait 1 year for all the kinks to get sorted out.
October 19th, 2020 at 1:14 pm
Tesla; So besides the updates that are being sent to all Teslas via OTA. The new Model 3 gets new wheels, center console and a power trunk. The wheels and power trunk are more like new options and not really model changes. Which leaves really just a new center console.
Elon had better step up his game if he thinks that will be enough to keep his vehicles fresh in the coming years.
October 19th, 2020 at 1:20 pm
Sean: I sure hope at $113k super cruise was the only option missing. Too bad, as I would have liked your feedback on that option.
It would be a nice segment to hear Autolines opinion of the various self driving features that are currently available from all makers and how they stack up against each other.
October 19th, 2020 at 1:25 pm
Looking at the picture of the new Cadillac my eyes were immediately drawn to the shark fin antenna. Wish manufactures would place those at the back of the roofline where they’d be less of an eyesore.
October 19th, 2020 at 1:51 pm
What?! No electric XJ?! After all that time waiting for it (only to look at, because there is no way I could ever afford one), they are just going to trash it?! So all that investment is going to be for nothing? Shame! It looks like JLR will only be building CUV’s for both Jaguar and Land Rover. That is until the next financial crunch and big, heavy CUV/SUV/crossover are once again on the wrong side of the fuel economy debate. Then, I fear, JLR will wish they had smaller, lighter vehicles in their line-up that they could turn to.
I’m starting to warm up to the new Escalade. I just loved the old one so much, all I could see were what I felt were flaws in the over all look of the new vehicle. I’m still not happy with the ‘face’ of the new one. IMHO, they should have kept the headlights of the old vehicle and maybe just updating them. And the section below the front grill and lower spoiler/splinter just doesn’t seem to sit right. As if its sticking out too far. It’s as if a XT4 is sitting between the Escapades headlights and is going to pop out like a drone at any minute!
October 19th, 2020 at 1:59 pm
$113K for an Escalade is incredible. It would have to be fairly special inside and out to justify that cost to me.
I also hear from reviews that the new independent rear axle gives the escalade the one thing it has been missing for decades….A useable rear seat. Lets hope GM has a win with this one.
October 19th, 2020 at 2:08 pm
2 Ways to look at Tesla’s return policy. Either they got a lot of cars back that now had to sold as used or they didn’t get many back at all and the program was pretty much un-needed.
October 19th, 2020 at 2:48 pm
I think some of the trust in the autonomous shuttles was due to their slow speed and intersection caution. You slowly pull out as one approaches and it will always back down. Perfectly safe and less waiting for the car. Bring them on!
October 19th, 2020 at 2:49 pm
First, I believe Jaguar has already axed the XE which I am sure not even 1 in 10,000 average people know what the hell it is.
Second, the Escalade is RIDUCULOUS, not a masterpiece, but a TRULY FUGLY vehicle. The interior you showed was a sea of blackness. Nobody would guess this is a “luxury’ vehicle. It just has a lot of knobs, buttons and screens. That is not luxury. As for the exterior, it is as beautiful as a HIPPOPOTAMUS. OK, at best as a RHINOCEROS. Seriously, somebody tell me why the front end is any better than the oft vilified Lexus Spindle GrillE? (and not Grill!)
As for TEsla exporting Model 3s to EUrope, I don’t know if it is because its CHinese sales are weak. WHen you make a car in CHina with super-low CHinese labor rates, and you are allowed to export it to EUrope and sell it for an arm and a leg, AND pay only 10% protectionist Euro Tarriff, you will have profits coming out your ears. ANd most likely this is temporary until the Berlin Gigafactory can supply Europe with all the Teslas it needs. BUT when the more affordable $25,000 or even $20,000 hatch comes out in a couple years, maybe all of them will be made in CHina and exported everywhere else too. WHich could make it much easier for Tesla to make money out of a $20,000 BEV hatchback.
PS if you really want to blow $113,000 on a luxury car, go buy an S CLASS. Then you will know what a luxury car should be like.
October 19th, 2020 at 3:19 pm
That new Escalade is amazing, the 113K price won’t turn potential buyers away. I’m guessing you could spend even more if adding all options available. People will buy these and enjoy them very much plus and I will enjoy seeing them out and about.
October 19th, 2020 at 4:06 pm
Doubt an S class can haul 7 people and tow a 8000lb boat. So not really in the same class.
October 19th, 2020 at 5:05 pm
I thought the Jaguar XJ had been discontinued. At least it’s not listed by either the EPA or CR site for 2020. I guess it just took a year off.
From the reviews I’ve seen, both in CR and enthusiast magazines, the XE is the one that should go. It is apparently underwhelming in most ways, compared to the competition.
Some people are willing to pay a lot for the Escalade bling. For half the price, you can get the same basic truck as a Suburban or Tahoe.
October 19th, 2020 at 6:51 pm
I’ve seen a GM full-size SUV thread its way through a European side street… like being visited by aliens.
That said, the Escalade’s interior now features a distinct, modern, and tasteful style without being whacky. While the front crease really should become a Cadillac trademark (I do much prefer the old design in general – it had more panache and presence).
As for Tesla’s running update, the reference to model years is a mis-take probably drawn from an erroneous report not originating with the enterprise.
Also, part of the 3′s range increase is due to the addition of a heat-exchanger adopted from the Y. Sandy Munro did an extensive dive into the underlying, innovative technology.
October 19th, 2020 at 6:53 pm
It’s sad to say some people in Europe have actually been waiting for a Model 3 from China so as to avoid having to deal with real or perceived Fremont quality problems.
October 19th, 2020 at 7:36 pm
I doubt if many people used the Tesla return policy. There would be a lot of red tape to use it, and in many, or most states, you’d probably wouldn’t be able to get the sales tax back.
October 19th, 2020 at 9:05 pm
11 Yeah, they sell to much different people, though I seldom see people towing with Escalades. Most of the several Airstreams I saw on my recent highway trip were towed by pickup trucks, and non-Escalade GM big SUVs.
Interesting about the S-Class, is that it’s rated to tow 2100 kg, about 4600 pounds everywhere in the world, except the USA, where its tow rating is zero. I guess in America, every car company, including M-B, wants to force people to buy trucks if they want to tow.
October 20th, 2020 at 4:06 am
16 M-Bs “S” class SUV is much cheaper than the sedan, I doubt they make more $ off it than off the sedans.
If anybody needs an Escalade once a year, the smart thing is to rent a Suburban, which is just as capable, for towing horses etc. If one needs it frequently, the appropriate thing is to buy a Suburban, and if you do few miles with it, buy it used and save a ton. THe idea of a luxury schoolbus is ridiculous. Will you take the
Escalade to the opera and make a grand entrance? Truly Ludicrous.
And after all, who owns the Esclades? APart from pimps and rappers, who else, successful plumbers?
October 20th, 2020 at 4:08 am
Today I saw an article (but it required subscription so I don;t know the details) that M-B is out with a Maybach SUV. Probably aiming at the lucrative Bentley Bentyaga- ROlls CUllinan big super-luxury SUV segment. A testament to the declining good taste of those who can waste the $ on these things.
October 20th, 2020 at 4:36 am
https://alabamanewscenter.com/2020/10/19/alabama-built-mercedes-maybach-suv-to-start-at-160500/
Much cheaper than the $300,000+ Cullinan but closer to the Bentyaga price, and double the price of the Merc GLS large SUV.
In fact they will call it “Merc-Maybach GLS 600″
October 20th, 2020 at 4:37 am
https://www.caranddriver.com/news/a34416188/2021-mercedes-maybach-gls600-suv-priced/
C&D thinks it is “bargain” priced even tho it’s twice the price of the regular GLS.
October 20th, 2020 at 5:55 am
While not definitive, just about every review of the new Escalade is beyond positive. Escalade owners are as passionate and loyal as any niche vehicle owner. The owners that have Escalades, I’m sure, are excited of the new model introduction. I suspect there are gentlemen farmers, ranchers and some of the professional crowd that keep Escalade sales strong. When a Tahoe/Suburban just isn’t enough, there’s Escalade; I see nothing wrong about that.
October 20th, 2020 at 8:20 am
21 I totally agree and when people have enough money that they are looking in the luxury segment, priorities shift and things that the average person think are important are not always the same for these buyers. Gas mileage isn’t a huge concern for someone spending over 100k on a vehicle. Its more about range. So a family with 3 or 4 kids maybe some teenagers the large SUV is the most practical especially if they carpool at all. Add in if they have horses a boat or camper (basically anything to be towed) then the large SUV serves all their purposes. When money isn’t a deciding factor then of course the Escalade moves to the top of the list. Just because your single, retired or don’t see the value in it doesn’t mean other people don’t.. They sell enough that obviously makes building them worth while. Only a fool that has watched too much TV would think they only sell to pimps and rappers.
October 20th, 2020 at 8:29 am
At one time, and maybe still, a lot of NFL and NBA players drove/drive Escalades. That may have changed, with the availability of much more expensive SUVs from Rolls-Royce, Bentley, and now Mercedes-Benz.
An owner of a construction company who did siding work for me a few years ago has, or had the Escalade version of the Chevy Avalanche. That one, of course, is no longer made.
October 20th, 2020 at 11:46 am
23 I used a limo service a couple times to take me to WIndsor Airport in Canada, when it made sense, tickets using that little airport were $500 cheaper than using DTW, and the taxi ride was only $100 Canadian cash each way. THe company had an Escalade and a Navigator and both were really bad inside, uncomfortable, and a lot worse than their other car, a Lincoln TOwn car, whose passenger seat was very comfortable. The interiors of the Esc and the Nav were not luxurious in the least, plus had lots of wear and tear on the leather.