AD #3179 – Mustang Mach-E GT & GT Performance Review; Mercedes Reveals EQS EPA Range; Kia Refreshes the Forte
October 11th, 2021 at 11:54am
Listen to “AD #3179 – Mustang Mach-E GT and GT Performance Review; Mercedes Reveals EQS EPA Range; Kia Refreshes the Forte” on Spreaker.
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Runtime: 10:07
0:08 House Prices in Austin Soar
0:47 Nikola Partners with TC Energy on Hydrogen
1:36 GM Says It Can Make Billions Selling Subscription Services
3:03 Mercedes Launches Armored Car Based on the S-Class
3:53 Mercedes Reveals EQS EPA Range
4:24 Musk Says It Will Be Decades Before All Cars Are BEVs
4:50 BMW BEV Sales More Than Double
5:13 Kia Refreshes the Forte
6:24 Mustang Mach-E GT & GT Performance Impressions
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HOUSE PRICES IN AUSTIN SOAR
As you know, Tesla is moving its headquarters out of California and into Austin, Texas, and the people in Austin are starting to see the kind of housing prices you see in California. Housing prices shot up 40% in the last two years. Apple, Oracle and Alphabet are building campuses in Austin and prices keep going higher. Reuters reports the median house price is now about $550,000. Tesla will hire 10,000 people to work in its gigafactory in Austin, but the average worker there will make about $47,000 a year.
NIKOLA PARTNERS WITH TC ENERGY ON HYDROGEN
Nikola is modifying its business plan because the cost of hydrogen is coming down faster than it expected. Originally, Nikola was going to make hydrogen on-site at refueling stations, but now it’s going to buy hydrogen from TC Energy, the Canadian company that was going to build the XL Pipeline. TC Energy will build hubs near truck routes that will make 150 tons of hydrogen a day. TC says it’s getting harder and harder to build new petroleum pipelines, so it wants to repurpose part of its existing pipeline infrastructure to move hydrogen. Autoline has learned that TC Energy will make hydrogen for about $2 a kilo, and it expects to be in operation within 5 years.
GM SAYS IT CAN MAKE BILLIONS SELLING SUBSCRIPTION SERVICES
General Motors believes it can make a ton of money selling subscription services to its customers. GM says that on average its customers will pay $135 a month for subscriptions. At an analyst presentation last week, GM said it has 4.2 million customers paying $2 billion a year for subscription services, mostly from OnStar. And it makes a 70% EBIT profit margin on those services. Now it’s going to start selling car insurance through OnStar based on driver behavior. GM says it will make $6 billion a year in revenue just on that. It also has a ton of data generated by its cars that it can monetize. Put it all together and GM says it will boost its revenues by $20-25 billion a year. But here’s our question: is GM right? Would you pay $135 a month to get more services in your vehicle?
MERCEDES LAUNCHES ARMORED CAR BASED ON THE S-CLASS
Mercedes-Benz started building armored vehicles in 1928 and it just launched its latest model, a version of the S-Class called the Guard. It’s powered by a 612 horsepower V12 twin turbo engine and all-wheel-drive which gets 14.5 MPG based on the WLTP cycle. Since the doors are so heavy due to the armor, they need special actuators to open and close. Same for the windows. They use hydraulic lifters, instead of electric ones. But all that protection doesn’t come cheap. It more than triples the cost of an S-Class. The Guard costs 457,000 euros or nearly $530,000.
MERCEDES REVEALS EQS EPA RANGE
Mercedes also revealed the EPA range of its EQS electric sedan. The rear drive model is rated at 350 miles while the all-wheel-drive version delivers 340 miles. That’s quite a bit behind its competitors. The Lucid Air has up to 520 miles of range and the Tesla Model S is rated at over 400 miles. The EQS goes on sale later this year with a starting price just over $100,000.
MUSK SAYS IT WILL BE DECADES BEFORE ALL CARS ARE BEVs
While the electric revolution is underway, the man who helped lead the way says it’s going to be decades before we convert all vehicles to electric. During a recent shareholder meeting, Tesla CEO Elon Musk said it will take 30 to 40 years until the global vehicle fleet is all electric. There are over a billion vehicles in the world today, but only 1% is fully electric.
BMW BEV SALES MORE THAN DOUBLE
But BMW is making progress with its BEV sales, through the first nine months of the year, it sold nearly 60,000 all electric vehicles, up 121%. When you include hybrids, the BMW Group sold more than 231,000 electrified vehicles so far this year, up nearly 100%.
KIA REFRESHES THE FORTE
Kia refreshed the Forte sedan. Styling front and rear has been massaged. The front is a little less bubbly. We’d say it’s more aggressive. The rear was only slightly tweaked and the taillights now pick up on the same three segmented light pattern of the front headlamps. The other big change is a bigger 10 and a quarter inch center display screen, but there’s also more standard driver assistance technologies as well. The Kia Forte will continue to be built in Mexico and the updated 2022 model will go on sale soon.
MUSTANG MACH-E GT & GT PERFORMANCE IMPRESSIONS
When Ford introduced the Mustang Mach-E, I understood the use of the Mustang name as a way of giving it some instant recognition, but after my first drive in the electric crossover I didn’t really feel like it had earned the use of the name. The sporty character I have come to expect from a Mustang didn’t come through in that drive. However, I immediately changed that stance after getting behind the wheel of the new Mustang Mach-E GT and GT Performance. These versions feature the larger 88 kWh battery pack as the standard Mach-E, but the front electric motor has been upgraded and now combines with the rear motor for 480 horsepower. The GT also makes 600 lb-ft of torque and does 0-60 in an estimated 3.8 seconds, while the GT Performance is able to tap into more battery juices and puts out 634 lb-ft of torque and does 0-60 in 3.5 seconds. Nope that’s not as fast as a Tesla, but it’s more than enough to firmly squish you back into your seat and leave you thoroughly impressed with its acceleration ability. But there’s more than more power that makes these unique compared to the standard version. They come with larger brakes, Ford Performance seats, exclusive body styling and unique wheels as well as available MagneRide suspension, although it’s standard on the GT Performance. That model also features even larger front brake rotors, Brembo calipers and unique Pirelli tires. Put it all together and the Mustang Mach-E GT and GT Performance are ready to tear up any tight twisting roads right out of the box. There’s more than enough power to break the back end loose, but the calibration for power and torque distribution, along with the tires, are good enough to provide input back to the driver and still feel like you’re in control. They also feel like they would handle themselves quite well on the track too. We got to put them through an autocross course where they didn’t seem to mind the constant hard accelerating and braking. A new drive mode, called Unbridled Extend, which helps optimize traction, stability control and battery life, is meant to help return consistent lap times. But consistent is the important word there. Unbridled Extend helps keep the temperature of the powertrain in its happy zone by limiting peak power, so it’s actually slower in a straight line, but you should be able to spend more time on the track. The real test will be when actual customers start getting their hands on these new EVs and really start putting them through their paces. And that’s going to start happening soon. Deliveries have already kicked off and prices start at $59,900 for the Mach-E GT and just under $65-grand for the GT Performance, which is before any incentives.
But that’s a wrap for today. Thanks for joining us.
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Comments (28)
October 11th, 2021 at 12:06 pm
My apologies but the subscription gold rush is getting out of hand, especially when it applies to devices we’ve already purchased! These days, media, news, appliances, housing, and virtually everything is moving to demanding we pay monthly fees for something. Is rental (what a subscription is) the end all,and ownership now a dirty word?
October 11th, 2021 at 12:20 pm
I’ve had a number of GM cars, and have never spent a cent on Onstar, or satellite radio. When the “free trial” is done, I’m done. Actually, if GM has only 4.2M Onstar customers, that’s not many, considering there are probably ~50M GM cars on the road.
October 11th, 2021 at 12:22 pm
#1 matt, please Google in Youtube Lynk Co, in Netherlands , they have rolled out LynkCo Subscription € 500 , all in Maintenance and Insurance included customer just pays for gas 3 cyl Hybrid powertrain , I believe, Lynk means linked and Co means Community , as in shared, I believe this method of car ownership is popular in China among 35 – 50 yr old demographic there, the car is owned by Geely Auto group/ LynkCo, tho the video says they can also sell the car. Not sure how successful this type of marketing works, with a lease one can buy out the lease and end up with car/ equity, a car can and will be a depreciating asset in most cases, keep in mind.
October 11th, 2021 at 12:24 pm
Ford must be allocating their chip stash to the new stuff. I drove through the local Ford store yesterday and they had a Mach-E GT, a Bronco, and a Bronco Sport, but no other new vehicles that were visible.
October 11th, 2021 at 12:46 pm
Yes it will be quite awhile before BEV are the norm since one can easily buy a 30 year old used car
October 11th, 2021 at 12:52 pm
Would I pay $135/month for subscription fees? I wouldn’t pay $5/month. When my “included” satellite radio subscription ends, I never re-up. I also refuse to pay subscription fees for online news, the worthless Ring doorbell, OnStar, Netflix, Pandora, etc. I also have never paid for any app on my phone or tablet. Cheap? No. Value sensitive? Yes.
I believe when the next recession hits, those subscription “services” will find a sharply falling customer base. And some of those “services” will not survive the recession (as customers learn they can live without).
October 11th, 2021 at 12:55 pm
maybe GM counting their chickens before they hatch ,not sure if they were able to monetized Onstar ever, I did have a GM IT Ontario tech as a neighbor two doors away from me , he said they (family)came from Detroit, rented the house for 4 years.
I believe Hydrogen is a gas that has no smell, and piping it over land and a leak can be a
fire hazard, and how to produce it cheaply without coming from Nat Gas? TC is Trans Canada pipeline?
October 11th, 2021 at 12:57 pm
4 Kit – Maybe you missed the nouveau-primitif Ford Dunk-E. I’ve heard the genes still need a little tweaking.
How long until subscriptions can be compared online, and certain clueless manufacturers make their offerings as byzantine as possible?
I expect the A/C to just work.
October 11th, 2021 at 1:04 pm
I maintain OnStar on my ’19 Cadillac CT6 as this is my ‘travel’ car. I was on extended trial that had the ‘works’ on it (nav and app) but since it expired, I have gone with a cheaper option of Safety and Security at around $20 a month. I also maintain a Sirius account in which I negotiated a yearly fee of less than $10 a month (I need my classic rock).
I cringe a little even at those low prices for extras and certainly wouldn’t even consider numbers that GM is suggesting.
October 11th, 2021 at 1:04 pm
6 Sounds like me. The only “subscriptions” I have are my phone, and cable TV/internet which is part of my condo association.
October 11th, 2021 at 1:09 pm
@7 Pretty sure they would add an odorant to the H2, like they do with natural gas and propane; I believe they use ethyl mercaptan. It still doesn’t prevent all gas explosions but that can give far warning.
October 11th, 2021 at 1:31 pm
Chuck, the CT6 is a great travel car. But there is nothing in that $20 S&S plan that has value. I have talked with many First Responders and with the 911 emergency responder association. Your cell phone or eye witnesses will summon EMTs much faster than OnStar.
As for enjoying rock music, I understand. But I plan my long trips with a cheat sheet of classic rock stations along my route (an easy internet search). I also have Spotify (the free version with advertising). In a recent trip thru the Dakotas, Wyoming and Montana (it doesn’t get more desolate in the lower 48), i was never lacking for music.
October 11th, 2021 at 1:42 pm
I don’t want GM or any other Big Brother watching my driving to decide my insurance rates. If I don’t get tickets or have an accident then leave my rates alone. OnStar monitors my speed and distance driven as well as who knows what else. Forget me ever buying anything from GM but maybe a vehicle.
October 11th, 2021 at 1:57 pm
The Nikola and TC Energy announcement is nothing more than a vaporware announcement that they leaned how to make from the former Nikola CEO. There talking about using natural gas and biomass (which is 2/3 methane) to make hydrogen. Some much for zero emissions! Oh, there going to use carbon capture technology to reduce emissions. Let’s see, how much hydrogen is TC Energy making today, NONE. How much carbon capture are they doing today, NONE.
October 11th, 2021 at 2:02 pm
One other thing I forgot to mention. Have you seen the price of natural gas lately? Good luck, if that they can anywhere near $2 a kilo gram.
October 11th, 2021 at 2:04 pm
Ford Mach-E GT: my son owns one and it drives phenomenally well. He is very happy with it. What a fast vehicle. This afternoon my wife will pick up her Mustang Mach-E (not GT). More than fast enough for us old ones.
Over the weekend I test-drove the new Bronco off-road in West Virginia. I had seen the videos on Autoline TV of the off-road performance of the Bronco and the reviews were very positive. My own experience: the Bronco is amazing off-road. Very capable and the drivetrain is very smooth. A DANA Corporation engineer was next to me to coach me, because the off-road course is so steep that I would not dare to drive it without a very experienced coach next to me: at one point the decline was 27 degrees, which is 51%.
So a lot of praise for Ford products. I am not a Ford Motor Company employee, not a supplier to Ford, and my own off-road vehicle is a Jeep.
October 11th, 2021 at 2:11 pm
I do have Sirius XM in two fo my cars. Every renewal is a negotiations with these folks. I just renewed my last car a week ago for $77/year down from the mailed rate of $247 /yr. I would never pay for installed accessory use like heated seats, better audio, or unlocked added performance. I am sure that the hackers could figure out how to work around these rip offs!
October 11th, 2021 at 2:13 pm
9 Chuck, negotiate a little tougher next time you re-up with SiriusXM. I have a one-year contract at $5 a month, that I will renew as long as its for $5. My sister has been paying that same rate for seven years. Since their costs are largely fixed, they would rather get $5 a month from you rather than $0. It costs them nothing to activate the signal for your car.
October 11th, 2021 at 2:19 pm
GM has a habit of thinking everyone will want to line up for their latest technology toys. When they launched OnStar, the subscription predictions were wildly optimistic. When subs fell far short, they took to just installing it in every car and offering the free trial period. I’m sure this worked better, but subs were still well below initial expectations. Ten-year projections are great, but typically not worth the paper they are printed on.
October 11th, 2021 at 3:30 pm
19 Apparently the hardware is cheap, so they can install it in everything, and come out ahead, even with a 5% subscription rate.
October 11th, 2021 at 4:37 pm
I can’t imagine GM buyers willing to spend that much each month for various subscription services.
October 11th, 2021 at 4:38 pm
Now that the official EPA rating has been announced, it seems that there is at least two things that need to be worked out. First is whether the Lucid Air is a true luxury vehicle, in the same class as the Mercedes, BMW and Audi! The Model S and Air have more range then the EQS, this is true. Yet, the Model S commands big dollars, because it’s tech is expensive and is more everyman in stature and only premium at best! Lucid claims that it is a luxury brand and the price of the Dream version would definitely put it in rare territory. Lincoln and Cadillac also say they are luxury brands, which they are, but few would consider them to be true rivals to the German Three! Now that the both the Air and the EQS will soon be on the road, a comparison test of these two luxury BEVs will be able to set the record straight. The second concern would be the range of the up coming EQE?! If the bigger batteries of the EQS gives it 350 miles of range, what does that for tell of the EQE with is smaller foot print? Don’t get me wrong, 350 miles is exceptional, but most were expecting more from the EQS and therefore may have expected and excepted 340-350 miles of range from the EQE! Yet, with the EQS falling short of expectations regarding range, which are is still incredible, one can’t help but wonder how it’s small sibling, and platform mate, will fair!
October 11th, 2021 at 5:03 pm
It will be interesting to learn what the Lucid Air is actually like. I would expect more Camry than S-Class “luxury,” like Tesla S. We should find out soon.
October 11th, 2021 at 6:57 pm
The GM subscription I would pay for is autonomous tech. $100 to $150/mo seems reasonable if very effective. I, as others here, don’t see much value on existing ‘at fee’ services GM offers, including sat radio. In the past I also paid for internet service (cadillac has a modem built in with wifi), but since I changed my kids cell plan to unlimited data this became redundant so I cancelled.
October 11th, 2021 at 8:50 pm
Haven’t a need for additional services but when it comes to over the air, some can not get enough that ties into their phone. I’m dropping cable but my cell; I will continue low cost add-ons. Wonder what GM, oops gm has learned form their earlier association with VerizonWireless.
October 11th, 2021 at 11:31 pm
We had On-Star for the first three months we owned our Impala. It helped us once with a car issue, but fell short as a GPS service. We made a wrong turn leaving a gas stop surrounded by one-way streets and On-Star said, “We will resume when you return to the route.” That’s when I needed it the most. Our Garmin can be annoying with, “Recalculating”, but it keeps trying to find your way and shows surrounding maps to help. I’ve tried using Google Maps several times, but has been confusing on country roads, telling me to make a turn where there isn’t a crossroad in sight. We do enjoy Sirius XM, but only at the ≈$6/month rate they seem eager to provide if you don’t respond to their initial offers.
October 12th, 2021 at 9:28 am
If I buy a subscription service from GM does that mean that their car will magically have decent quality materials, excellent reliability, and exceptional resale value like Toyota? No? I guess then there is no reason to spend extra per month on a GM car.
October 12th, 2021 at 11:23 am
But Toyota doesn’t make Corvettes. I won’t be doing any subscriptions, though. I’ll use the satellite radio while it’s free, and check out the Onstar, while it’s free.