December 17th, 2012 at 11:53am
The Detroit Three are violating their own promises which could hurt the brands and their bottom line. GM and Volkswagen are battling it out for second place in world-wide sales while one company claws back to number one. Automakers were a big hit on YouTube this year, eight of the top 20 most viewed ads this year were from carmakers. All that and more, plus John talks with the CEO of Carbon Revolution about its carbon fiber wheel and the future of the company.
Welcome back to a brand new week of Autoline Daily. We have the results of our Autoline Daily poll that we’ll get to in a couple of minutes. But for now let’s get to the other news..
TOO, TOO MUCH INVENTORY
Uh-oh, the Detroit Three are letting their production plans get out of control again. They have too much inventory, and that’s leading to some big price discounts. GM has a staggering 106 day’s supply, Chrysler has a lopsided 90 day’s. Ford is sort of OK at 72 day’s. But compare that to Toyota’s and Honda’s 61 day’s and Nissan’s 62. By overproducing, the Detroit Three are violating their own promises to only build to market demand. This is only going to hurt their brands and their bottom lines.
TOYOTA CLAWS BACK
Toyota lost its sales crown last year due to the earthquake and tsunami that hit Japan which crippled its production. But now Bloomberg reports that the company will once again be number one in worldwide sales. GM and Volkswagen are battling for second place, at the moment there is less than one percent difference between them. Overall, global car sales are expected to top 80 million units for the first time ever.
Carbon Motors announced today that it would begin taking orders for the Carbon TX7, and production will begin late in 2013. The TX7 is a custom-built cop car, with all the equipment integrated into the car, not added on like an aftermarket conversion.
EU’S GRAM-MY AWARDS
The European Union has a carbon-dioxide-emission goal of 130 g/km by 2015. If the industry continues to improve the fuel economy at its current rate it will hit that goal. The car companies have specific targets based on the sales-weighted average mass of the vehicles they sell. Toyota and PSA have already hit the goal with Fiat not far behind. But Mazda, Chrysler and Nissan have the longest way to go. Companies that miss the target must pay fines up to $125 for every gram of CO2 they go over the target for each car sold.
YES, BUT DID THEY SELL ANY CARS?
Automakers were a big hit on YouTube this year. According to AdWeek, eight of the top 20 most viewed ads on YouTube this year were from carmakers. Interestingly, all but one were Super Bowl ads, only Fiat’s Abarth ad with Charlie Sheen wasn’t from the big game. Volkswagen’s “The Bark Side” featuring dogs barking Star Wars music was the top automotive ad on YouTube this year, coming in at number three overall.
Now let’s get to the results of the Autoline Daily poll. We asked you to take a look at the finalists for the North American Car and Truck of the Year awards, and choose who you think should be the winners. First the truck and utility category. The Mazda CX-5 got 96 votes. The Ford C-Max got 181. But you decided the Ram 1500 pick-up should be the North American Truck of the Year. The Ram got 246 votes. On the car side, 57 of you voted for the Honda Accord, 241 for the Cadillac ATS. You decided the Ford Fusion should win the North American Car of The Year award, but by the slimmest of margins. The Fusion got 243 votes, only two more than the ATS. These are very interesting results and I bet they mirror what happens in the official NACTOY voting.
A while back we showed you a new type of carbon fiber wheel made by a company called Carbon Revolution. Coming up next the CEO of the company explains how they plan to take that wheel to the market and grow the company.
CARBON REVOLUTION’S CARBON FIBER WHEEL
(Carbon Revolution can only be viewed in the video version of today’s show.)
Jake Dingle is the CEO of Carbon Revolution. In the following clip he explains how they are going to market these wheels, and talks about where they think they can take this company in the long term.
Very interesting to hear him say they want this to become the replacement for aluminum wheels. And when he says they want to take it to the masses, he means they’ll be able to make millions of these carbon wheels a year. It will be fun to watch them roll this product out.
Anyway, that wraps up today’s show. Thanks for watching, we’ll be back here tomorrow.