AD #1232 – Chinese to Buy 1/3 of PSA, Taxi of Tomorrow Voided, SEMA Concepts Teased

October 9th, 2013 at 11:38am

Runtime: 6:55

According to a report, PSA’s Chinese partner will buy a 30% stake in the company. A judge rules that New York City over stepped its bounds and voids the mandate for Nissan’s Taxi of Tomorrow. We gear up for SEMA with a few concepts that will make their debuts at the show. All that and more, plus a look at the updates Toyota made to its Entune infotainment system.

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Hello and welcome to Autoline Daily. It’s Wednesday, the 9th of October and I’m Jim Hall from 2953 Analytics filling in for John today. We’ve combed the world for all the automotive info and news that’s fit to report. Let’s get sarted, shall we?

DONGFENG TO BUY ⅓ OF PSA
Last month we reported that Peugeot-Citroen’s Chinese partner, Dongfeng, was considering taking a stake in the French automakers and now it looks like that will happen. A report from China says that Dongfeng plans to buy a 30% stake in PSA for $1.6 billion dollars. Bloomberg also reports that the French automaker is looking into other partnerships in order to reduce costs and expand outside of Europe. Looks like on a per-share-basis, Dongfeng got a much better deal on PSA than PSA’s other Partner, General Motors.

TAXI OF TOMORROW VOIDED
Nissan was just dealt a blow in regards to its Taxi of Tomorrow. As we’ve reported, cab companies in New York City sued over being forced to use Nissan’s taxi and now a Manhattan Supreme Court judge has sided with them. The Taxi of Tomorrow was scheduled to start hitting the streets by the end of the month but the judge ruled that the city over stepped its bounds and voided the mandate. Nissan says it’s still preparing to offer its taxi to companies that want to use it.

CAR SALES EXPECTED TO GROW IN 2014
The auto industry continues to be one of the bright spots in the U.S. economy and it looks like it will continue through at least next year. A new forecast from Edmunds.com says cars sales in the U.S. will hit 16.4 million units in 2014 which would be the highest amount since 2006. That’s a 6% increase over the 15.5 million vehicles expected to sell this year. With the average age of a car at over 11 years old, Edmunds expects buyers will be forced into getting new cars.

MITSUBISHI TEASES CONCEPTS
The other day we reported that Mitsubishi would re-engage the U.S. market with a new product line and we may have a peek at what those vehicles will look like. The company is showing off sketches of three concepts that symbolizes its new design identity. Two of the concepts are plug-in hybrid vehicles, one a full-size SUV and the other a compact SUV. The third concept is an MPV that’s powered by a direct injected and turbocharged engine. Mitsubishi’s concepts will be unveiled at the upcoming Tokyo Motor Show next month.

CHRYSLER GOING BIG AT SEMA
The SEMA show in Las Vegas is also coming up in November and Chrysler is giving us a look at what it will have on the floor of the show. The company will have 20 vehicles customized with Mopar performance parts and accessories. In addition to the vehicles, Chrysler will show off Jeep Performance Parts developed by its newly created Mopar Off-Road Division.

HYUNDAI TEASES LEGATO CONCEPT
And in other SEMA news, Hyundai will have a concept there based on a Genesis Coupe, called the Legato. It features some body treatments, upgraded suspension and brakes and has a more performance based interior. The concept is powered by a tweaked version of Hyundai’s 3.8 liter V6 that will produce 400 horsepower and 425 pound-feet of torque. Obviously this is the weak sister Genesis coupe what with Hyundai’s previously announced 1000HP variant that will also break cover at SEMA. The 2013 SEMA show runs from November 5th to the 8th.

Coming up next, a look at the updates Toyota made to its Entune infotainment system.

TOYOTA’S NEXT-GEN ENTUNE SYSTEM
Toyota recently launched the all-new Corolla. It not only features a new design and improved powertrains. It’s also available with the company’s next-gen Entune infotainment system. Here’s a look at what’s new.

(Interview about Toyota’s next-gen Entune infotainment system can only be viewed in the video version of today’s show.)

And that’s it for today’s show. Once again I’m Jim Hall from 2953 Analytics, thanks for watching and I will see you tomorrow. Yep, tomorrow… you have been warned.

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37 Comments to “AD #1232 – Chinese to Buy 1/3 of PSA, Taxi of Tomorrow Voided, SEMA Concepts Teased”

  1. Brett Says:

    I wonder if there is any sort of business opportunity for offering weekend training seminars on how to use the infotainment system in your new Toyota. (or Chevy, or Volkswagen, or…)

  2. Bradley Says:

    The Camry Taxi in the footage is more attractive than the Nissan. However, the Camry doesn’t fulfill all the accessibility requirements. The Nissan is taller than a standard car, won’t that hurt pedestrian and cyclist visibility-having all taxi’s being pseudo-SUV heights?

    Recent events have demonstrated that having a SUV will help one escape biker gangs. I don’t know if Nissan’s pseudo-SUV would help.

    “Escape from Biker Gangs in New York”
    as opposed to
    “Escape from New York”.

    Kurt Russell?

  3. Broge Says:

    Toyota needs to update all their cars. If you drove one 10 years ago it drives the same as new one now. So what if it has new radio/nav ?

  4. C-Tech Says:

    Taxi of tomorrow voided, yeah! There is hope for freedom and free enterprise. I understand setting rules and guidelines for safe taxi operation, however mandating which vehicle to use goes too far.

    Is it just me or does it seem to not make a whole lot of sense to introduce a lot of modified new cars at SEMA when that market is mostly about modifying affordable older cars?

    Toyota and Chrysler’s more conservative approach to infotainment make better sense to me. I believe eventually the way to go will be to link with smartphones.

  5. Kit Gerhart Says:

    Maybe Ford will re-start the Crown Vic lines, to satisfy demand for the cars New York taxi operstors REALLY want. They’ll have GDI turbo engines, though. No, I doubt that the taxi companies want those.

  6. T. Bejma Says:

    C-Tech – Wasn’t Chrysler the first to offer the gigantic screen infotainment systems? I was in a Dart the other day and that screen is about twice as big (with twice as many icons) as my Cruze’s screen.

    As far as linking to smartphones, it’s the smartphone makers that don’t want the car controlling them and the government that does not want us to have access to all of those extra functions in our cars that are holding it back. The car makers would love to use the brains of your phone instead of trying to keep up with the moving target of people’s taste. I thought the same as you and asked the question to the infotainment guys here at GM.

  7. HtG Says:

    6 From what I read, TB, the smartphone is being set up as the individual’s connection with the net, worldwide. From there, datacenters will knit together phones, appliances, things, etc. You bet no one wants to give car makers control.

    _____
    I guess Bloomberg wasn’t able to make the right charitable donation to the judge’s favorite organization. Getowdaheeyah. Even so, I think those Nissans will work well in the city, and look the part.(just me?)

    Of course now that Mike will no longer be shackled by public service in NY, who knows who’s going to start getting checks?

  8. Kit Gerhart Says:

    Once there are a lot of the Nissans on the streets, they will start to “look like taxis,” as the CV’s now.

  9. Bradley Says:

    #6

    I am not sure that is accurate. What part of the government is restricting the apps a smartphone has and what information can be exchanged with the smartphone and the car?

    I think it is more the Lawyers and cost to transition that that world that that is prohibiting it.

  10. HtG Says:

    I’m telling you, Kit, it already does. I saw the Nissan at the NY show, inside granted, but it’s very likely to stand out in a good way on the street. The CV says taxi everywhere(or copcar, no matter how it’s painted[cops in NYC cruise in taxi looking CVs]) Peoples’ eyes are going to catch the Nissan at a distance, and it’ll be very nice to ride in and load luggage. Remember, tons of taxis are going to the airport.

  11. ColoradoKid Says:

    Taxi of Tomorrow – Null and void – Ahhhhh … yet another ever so rare breath of fresh air and common sense in an industry ( auto industry ) otherwise filled with fertilizer …. ahhhhhhh

    ————–

    GM – So how come GM Canada’s execs are so much smarter than ours when it comes to money/loans ?

    http://www.thetruthaboutcars.com/2013/10/gm-canada-ceo-sounds-alarm-over-cheap-loans/#more-619873

    Guess it must be all that foul as well as hot air pervading GM USA’s corporate headquarters ;-)

    —–

    Dear Mitsubishi – THIS … is a tease ;

    Your cars aren’t selling worth a ____ in the US of A !

    Nyaaaaaaaa !!!!!

    ——

    C-tech – SEMA comment – No it does not ! Then again SEMA has been on the road to irrelevancy now going on the last five years … so why change tactics now ?

  12. T. Bejma Says:

    #9

    I assume the DOT. What they are restricting is what applications can be used in a moving vehicle. GM has incorporated Navigation and Music applications, but both had to be approved by the government and they also have restrictions on what can be accessed while driving. It actually doesn’t make sense to restrict it in the car, because there is nothing stopping me from mounting my phone in the car and accessing everything. Typical government…

  13. ColoradoKid Says:

    Car Sales expected to grow in 2014 – John Boehner and Ted Cruze decide to negotiate – Tea Party members promise to read the US Constitution and Bible before commenting on either – GM finally pays back the American public for what is now decades of debts – Not to mention GM’s sudden acceptance of their own culpability rather than the usual blame shifting , excuses and lies of the past – Marchionne does an about face and starts playing it straight – The Middle Class will grow in leaps and bounds over the next five years – Peace in the Middle East is imminent – Obama promises to stop funding irrelevant science fair projects .. using recovery fund to shore up America’s infrastructure instead – Elon Musk comes face to face with reality … and decides to accept it

    So …. what do ALL these headlines have in common ?

    ;-)

  14. Lex Says:

    It seems to me that whenever GM gets involved with the European’s it cost them money! Does anyone remember GM’s deal with Fiat that cost GM $2 Billion Dollars! The agreement with PSA is just another example of poor leadership by GM’s top brass.

    GM needs to reinvent itself from within not by making follish agreements with outside partnerships. Holden and Opel should work together since either has a presents in North America. Stop attempting to take Opel upscale in Europe. Europeans are much more practical when it comes to their transportation needs and wants. Buick needs to concentrate on China as a luxury brand so that Cadillac can cross the Atlantic to become a competive luxury brand in Europe. Buick and Cadillac should not compete aganist one another in Europe.

    Chevrolet is the bread and butter of GM. It needs to focus on models which will receive world wide acceptance. The Cruze is Chevy’s best example of a world car that is competive in most markets around the globe. Those OEM’s that have a great A,B,C and SUV class vehicles seem to remain profitable no matter the world’s financial climate.

  15. HtG Says:

    so what’s on your mind today, CK?

  16. ColoradoKid Says:

    9 – Actually Mr Bejma .. as per usual … is out of his depth on this one . Fact is there Is NO government agency restricting .. limiting or even so much as caring what and how many Apps make it into a car .

    The problem lies with the auto makers who are unwilling to accept who really has the upper hand in the deal … therefore under the pretense of superiority are negotiating with both the App – Hardware and Software manufactures in very bad faith … with the digital folks then telling the auto industry where to shove it .. with explicit and graphic instructions included

  17. ColoradoKid Says:

    Lex – 14 – Brilliant … except .. it makes too much sense … and we all know GM is incapable of doing anything that makes a lick of sense .

    But … brilliant as well as very relevant ideas !

  18. Chuck @ GM Says:

    @CK – Sorry, was unavailable yesterday. Here’s the readers digest version of why oil isn’t from dead fish and dinosauers.

    Stalin wanted some answers on oil. He knew he was going to get nowhere fast without it. So he commisioned his boys to study oil. The answer, their theory, was that oil isn’t organic in origin. Their easoning ncluded there is nothing in it that came from organic sources, and oil came from 30,000 feet or more down, a full 20,000 feet below any known organic anything. Or nothing organic has ever been found below 10,000 feet. So they tried their theory out and Russia went from having no known oil reserves, to being a major exporter today. Another part of their theory I should’ve explained is that the mantle creates it. They went and got the “stuff” that their theory says oil comes from, and guess what? They created in the lab, the exact same oil they pump out of the ground.

    That doesn’t prove anything and an appeal to the internet (google “abiotic oil”) and you’ll read plenty of arguments on both sides.

    However, IMO the evidence stacks up in favor of the Rooskys theory. Basically people have been calling for the exhausting of the oil reserves since 1914. And we ever keep finding more and more. And somehow fields that went dry somehow now have oil back in them.
    I am somewhat of a conspiracy nut, and look at why would our oil companies (US and British) not at least explore what seems to be pretty compelling evidence that at least there is smoke, if not fire. You have to answer that for yourself.

  19. Kit Gerhart Says:

    GM has a lot of good products. That doesn’t seem to come up very often around here, just the negativity regarding upper management, and other things unrelated to the cars. Oh well.

    Yes, I agree that the PSA deal, and some other decisions of management don’t make much sense. Hopefully, the company will survive some mistakes, though, because the “nuts and bolts” people are generally doing a pretty good job.

  20. ColoradoKid Says:

    Delayed

    The Audi Q3 in the US

    The ‘ official ‘ excuse ? Audi says its due to regulatory problems

    The reality ? Seeing as how the Q3 is essentially a VW Tiguan .. Audi has no ‘ regulatory ‘ problems

    So whats the real reason ? Fears ( legitimate ) that the Q3 will take away sales from the ( cough … sputter … hack ) ‘new ‘ Porsche Macan

    ( see Pedro … everybody does this .. for multiple reasons they’ll tell the general public .. few of which are ever the truth)

    BTW – I Still aint no Audi fan ( after my S4 Avant debacle ) but this sure makes for a mighty fine read ( HtG .. you should enjoy this )

    http://www.gtspirit.com/2013/10/07/special-report-audi-land-of-quattro-alpen-tour-2013/

  21. G.A.Branigan Says:

    My view on GM products and management: I’m not into cars,but if I were I would own a Cruze diesel.I like it alot.A hatch or wagon would be even better.I like there 1/2 tons too,but sadly they have no plans that I’m aware of offering a small diesel option,which sux imho.

    Management at GM: So far out of touch with everyday people that it’s actually very pathetic.They consistently make dumbass partnerships that don’t seem to do what was hoped,and they spoil more deals because they are so out of touch.

    This only my own damn opinion as a GM vehicle owner and somewhat loyal customer,because they just don’t ‘get it’.

  22. HtG Says:

    The only way I could be more pro-GM is if I went out and bought a car.

    Akerson? Sure is fun to kick. A la Peter D., who went off today on car maker management in general, in case anyone missed it.

  23. Kit Gerhart Says:

    20,
    Platform sharing has generally worked well for VWAudi, but it can only go so far, especially when it comes as close to true “badge engineering” as with Tiguan et. al.

  24. ColoradoKid Says:

    GM

    Here’s my honest and forthright opinion .

    First off … the only thing that PO’s me more about GM than their constant ‘ NEED ‘ for government monies ( since the late 60′s ) IS the fact that the company and in fact its entire culture from entry level white collar right up to the top is based firmly on the idea of constant and relentless ;

    Lies
    Blame shifting
    Pathetic and meaningless excuses
    Constant stream of excessive hyperbole .. both in their Ads as well as comments made to the press etc
    In general treating the customer as if they were stupid
    Insults vs Apologies
    Complete and utter lack of culpability ( about anything )
    Pitiful excuses ( over everything )
    Dogmatic responses rather than admit the truth or state the facts

    Add to that a product line up that has yet in any way shape or form even so much as equaled GM’s competition … not to mention most of it being over priced in comparison .. along with GM’s board constantly hiring ‘ Celebrity ‘ over Quality when it comes to the C’s ( CEO CFO etc )

    … then factor in GM’s most recent and blatant ABUSE of the funds given to them in the bailout

    …. not to mention one of the most inept and dishonest dealer networks of all the manufactures

    … and lastly … the blatant crap treatment I’ve personally received from GM’s dealers/employees / corporate * … both on others behalf as well as my own

    .. Truth be known … I couldn’t be less of a GM fan if I tried . With again… truth be known …. the blame for my dislike of the company falling firmly on GM’s shoulders … from top to bottom … not that GM would ever admit to it .. or any other wrong they’ve ever committed

    In all honesty … and with no insult intended towards anyone here .. to ‘ like ‘ / be a fan of / or to purchase anything from GM requires more than a bit of a ‘ Blind Eye ‘ to the realities of both the company you’re dealing with … as well as the POS you’ll be taking home / owning

    Rant over !

    PS; T Bejma … though I know its against company policy to admit to culpability … take ownership for a good 20% of my attitude towards your ‘ Minders ‘ GM . And I use that word in its most literal form ;-)

    [ * some day AH I'll share a GM experience with y'all that'll send the most adamant supporters among you into a blind rage ]

    ——————-

    Kit – 23 – Again as I’ve stated before … Audi does seem to have the ability to ” Pull the Wool ” over its customer base’s eyes time and time again when it comes to ‘ Badge Engineering ‘ Damn successfully as well . Why ? Even the best of ‘ critical ‘ pundits are stymied by that question ..

  25. Kit Gerhart Says:

    A lot of Audi products are well beyond badge engineering, with different body work, interiors, and power trains, except engine, from any VW’s, but some are pretty much badge engineered products.

    I can’t think of any Audi that I’d buy over a cheaper VW, or a similar price Benz or BMW, but you have to give them credit for their success.

  26. Kit Gerhart Says:

    24,
    How do you figure GM “needed” government money in the late 60′s? They were making money, hand over fist, and had almost half the US market at that time.

    Another question. Do you hate Ford because of things in their past, like the hired thugs, or old Henry’s Nazi sympathizing? Just curious.

  27. T. Bejma Says:

    #24

    Aside from your personal dealership experience, I challenge you to provide one single solitary piece of factual proof on any of your rant…

    Especially this one…

    “Add to that a product line up that has yet in any way shape or form even so much as equaled GM’s competition …”

    Truth be told, this was a totally hilarious read and continues to prove how out of touch your immense ego has made you…

  28. M360 Says:

    The deal that GM made with PSA just shows, again, how much smarter Ford is with their money than GM is with theirs. I wonder how much technology the Chinese are going to get from PSA that came from GM. GM just does’t get it until it’s too late.

  29. Kit Gerhart Says:

    If Ford would just get over their fetish with technology for technology’s sake, both with “infotainment systems,” and with powertrain.

  30. pedro fernandez Says:

    Bloomberg’s Castronian mandates once again are struck down by the courts, just go away, dude and buy your own banana republic so you can micromanage their puny lives.

  31. rick Says:

    24 – I missed it; when the subject change to Obummer?

  32. T. Bejma Says:

    http://www.consumerreports.org/cro/news/2013/10/talking-cars-podcast-episode-14-gm-2014-corvette-cts/index.htm

    GM probably using all of that government money they have been getting since the 60′s to pay CR for the latest good reviews. Yeah, that’s it. Make sure you are on a DSL line or a Mac before you read it though, you never know who’s watching ;-)

  33. Chuck Grenci Says:

    T.B., nice link to C/R; thanks. I watched the whole thing (after GM they talked other vehicles too). So much (all manufacturers) good stuff out there; even the not so good stuff is pretty darn good.

  34. Kit Gerhart Says:

    31,32
    That CR video was great. While I’ve subscribed to CR for years, I had never seen one of those “Talking Cars” shows before. While they don’t have a reputation as such, those guys are obviously “car guys.”

    Their discussion of the Dart was interesting, basically saying “don’t buy it,” but if you do, the turbo/manual is the best power train of the current offerings. Also, what they had to say about the new Corvette was interesting, especially their saying that it “felt light” compared to earlier ‘Vettes. I know the one I recently bought “feels heavy,” considering it weighs only about 100 pounds more than my Prius.

  35. RS Says:

    #23
    Huge +1 on your GM rant. There will never be another one of its vehicles in my driveway. They had their chance to make me a loyal customer and blew it big time. First time it is their fault second time it would be my fault. There will NEVER be a second time!

    I would love to hear your complete GM rant – and I think I could match you on every count. But I suspect no one is really very interested in the details – least of all GM themselves. They will accept all the subsidies and probably say “Thank you” but I am SO pleased to see other manufacturers achieving success by treating their customers as a valuable asset with at least a modicum of intelligence.

    I do not enjoy seeing Consumer Reports give GM vehicles high ratings. At least they can’t recommend them – too risky given their track record.

  36. RS Says:

    Sorry – that should have been @24

  37. Dcars Says:

    Hello!
    Boy I’ve missed a lot. I visited a Chevy dealer and inquired about the Cruze Diesel, the salesman didn’t recommend it. They did have lots of nice vehicles. The Impala looked great.