AD #1431 – Chrysler Posts Q2 Earnings, Used Car Prices to Fall, 2015 Jaguar F-TYPE Coupe

August 7th, 2014 at 11:54am

Runtime: 7:26

- Chrysler Post Q2 Earnings
- Used Car Prices to Fall
- Tesla Reaches China Trademark Agreement
- New Portable HUD
- First Look: 2015 Jaguar F-TYPE Coupe

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Welcome to Autoline Daily for Thursday, August 7, 2014. I’m Barbara Banyai back in the anchor chair filling in for John as he continues to cover the Management Briefing Seminars in northern Michigan. And now the news…

CHRYSLER POSTS Q2 EARNINGS
Chrysler posted its earnings for the second quarter and the results are much better than its Italian partner, Fiat. Last quarter the company sold 723,000 vehicles globally, up 12% compared to last year. That helped boost Chrysler’s total revenue 14%, to over $20 billion dollars. Its operating profit came in at $985 million dollars, up 22% and Chrysler’s net income for the quarter was $619 million dollars, a gain of 22%. Not surprisingly, Chrysler says Jeep and Ram were mostly responsible for its improved financial results.

USED CAR PRICES TO FALL
The economic downturn in 2008 kept a lot of people from buying new cars, so much so that the average age of a vehicle on the road today is over 11 years. Meanwhile, the “Cash for Clunkers” program ended up putting many good used vehicles out of commission which caused prices for used vehicles to climb. But now the secondhand market is seeing a wave of newer vehicles which will bring resale values closer to where they were before the downturn. ALG, the analytics division of TrueCar says before 2008 the average new vehicle retained 46% of its value after 3 years. As of June of this year that number has jumped to about 54.5%. But ALG forecasts that by 2017, new vehicles will retain about 49% of their value and by 2019 it will be back to pre-2008 levels. So, if you’re thinking about getting rid of that old ride, do it now.

TESLA REACHES TRADEMARK AGREEMENT
Last year we reported that Tesla was running into trademark issues in China because the name is already registered in the country. At the time CEO, Elon Musk reportedly offered $300,000 to the guy who owned the Tesla names, but he refused. But now Bloomberg reports the two sides have come to an agreement but financial terms were not disclosed.

KEEP YOUR HEAD UP
Some people find head-up displays useful, but what if your vehicle doesn’t have one and you want one? We’ve shown you an external unit in the past that Garmin offers, but that requires a thin film applied to the windshield. Now there’s a company out of California named Navdy that has come up with a new portable HUD that has voice and gesture based controls. It hooks up via your vehicles diagnostic port and can display information like speed, miles-to-empty, and tire pressure warnings. And unlike the Garmin unit, it doesn’t require a thin film on the windshield. The Navdy unit can also work with smartphone apps for navigation or even music. The company is looking to raise $60,000 through a pre-order campaign to help support initial production. Each pre-order unit will cost $300, while production units will be in the $500 dollar range.

Coming up next, we’ll take a look at Jaguar’s new F-TYPE Coupe.

2015 JAGUAR F-TYPE COUPE
Jaguar made a big splash last year with the F-TYPE convertible. On the heels of that success comes the F-TYPE Coupe. And to be fair to each, there’s a lot of overlap between the cars, however, when you start looking at the differences between the two, you can definitely see who Jaguar is targeting with the car.

Tim Philippo
Product Mgr., Sports Cars, Jaguar NA:
“And what’s great about the coupe is it appeals to two different customers. Customers who are looking for more performance and a more track-focused vehicle, but it actually also appeals to customers who need more practicality more of a day-to-day driver. Trunk space is twice as large as the convertible so it’s a little more useful as a daily driver but the body is also 80% stiffer so it’s even more responsive and handles better on the racetrack.”

And one of the reasons that body is so stiff is that the design team challenged Jaguar manufacturing to develop a way around the B pillar. You can see the car doesn’t have one, which gives the F-TYPE an aesthetic that is beautiful, but especially hard to achieve.

Tim Philippo
Product Mgr., Sports Cars, Jaguar NA:
“It’s a very complex piece it takes about 5 steps in the stamping process to get it all done. And no one had done a piece that large and that complex with conventional tools before. So it’s really kind of a triumph of engineering, manufacturing engineering, both from a materials technology and a special aluminum alloy we use for that piece as well as the stamping process itself it allows us to have a completely unbroken line whereas the XK Coupe has a seam half way down the C pillar, the F-TYPE has no B Pillar and no seam and because it’s a single piece it allows us to actually created the part faster.”

In fact, it only takes 20 seconds per part which allows the team to spend more time on other unique features of the car that we discovered while testing it on the freeway.

Tim Philippo
Product Mgr., Sports Cars, Jaguar NA:
“One of the great things about the F-TYPE is the shape of the car. It’s a beautiful design but unfortunately it’s not a very aerodynamic shape, especially the rear. The way that it tapers in both plan and profile view, you really need a spoiler to come up and control the airflow at higher speeds so at 70-miles an hour the spoiler comes up; you can see it rise up in the rear window when you hit 70, then it folds back down at 50 miles-per-hour.”

Now we should point out that the convertible also has one but it’s wider and not quite as tall so it doesn’t pop up at the same high rate of speed — and surprise some of us — while you’re driving on the freeway. So if you’re into hidden spoilers and 550-horsepower engines then the Coupe may be right up your alley; now the question is can you afford it? The base V6 runs about $65,000 while the V6 S will cost you at least another $8,000. However, when it comes to the Big Boy — the 5-Liter V8 R — be ready to shell out about $100-Grand. Of course there are options and extras that can boost the price even more, but if you’re looking a beautiful car with no B Pillar, then you might want to check it out.

That does it for Thursday’s edition of Autoline Daily, but be sure to check out Autoline After Hours tonight when John McElroy and Gary Vasilash bring you a special edition from the CAR Management Briefing Seminars in Traverse City, Michigan. They’ve got a great lineup of guests including Jaguar’s aluminum guru and the professor some insiders call “the Bob Lutz of China.” So check out that show tonight at Autoline.tv.

That does it for Thursday’s show. I’m Barbara Banyai inviting you to join me tomorrow as we wrap up the week here at Autoline DAILY. Have a great day.

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24 Comments to “AD #1431 – Chrysler Posts Q2 Earnings, Used Car Prices to Fall, 2015 Jaguar F-TYPE Coupe”

  1. dcars Says:

    FCA doesn’t seem to have a bright future in it’s present form. The worst relability ratings of all manufacures and an aging lineup of cars makes you think they are doomed.

  2. Chuck Grenci Says:

    As an aside (to the Jaguar F-Type): Make mine red, make mine CORVETTE. (opinions may vary) :)

  3. John McElroy Says:

    Don’t give up so easily on FCA. Jeep and Maserati sales are soaring. Ram sales are very strong. Europe and Brazil are in the dumps but will recover at some point. FCA is just getting going in China. Yes, the company has tough challenges ahead but it also has big opportunities too.

  4. Kit Gerhart Says:

    VW wants to be number one in the world, so maybe they should make those rumors true, and buy FCA. VW have deep pockets, so could come up with new products for Chrysler, and they could just make Fiats into badge engineered VW/Skodas, which would be better cars than the current Fiats.

  5. Brett Says:

    I would imagine that Jeep would have a lot of brand cachet in China.

    I still want FCA to import that Strada pickup to the USA. :)

  6. MJB Says:

    @1 I thought Land Rover had the worst reliability.

  7. RS Says:

    Good job Barbara

    Italy is definitely not the most competitive country in the EU so the Fiat stock price (and its business) may be being hit by a general malaise. Italians buy Fiats but that brand is not popular anywhere else in Europe. Amazingly, Fiat seems to have done well in Brazil. But, given the strength and resilience of the Chrysler brands, the company should be healthy for the foreseeable future

  8. Bradley Says:

    #5

    Yea, the Fiat Strada might open my wallet.

    Any surprise that Chrysler is being supported by Jeep and Ram? Despite all the hype, their “Chrysler” offerings are only exciting in a few small corners.

    I am seeing far more Fiat 500s than I would have guessed, especially the sporty Abarth.

  9. Drew Says:

    Barbara – From a pruely financial perspective, you do much better keeping an older vehicle than buying a new vehicle. The new vehicle will be in its steepest portion of the depreciation curve from both percentage and absolute dollar perspectives.

    Welcom back (nothing against Murray).

  10. DH Says:

    Land Rover is in the top 10 engine reliability companies….. only 1 failure in 72 engines.

    Of course that’s not as good as Honda at 1 failure per 344 engines, but LR is still better than VW at 1 failure in 40.

  11. DH Says:

    Cash-for-Clunkers was a classic case of the Broken Window Fallacy (you can create jobs by breaking windows). The program did create more jobs for carmakers, but it drove up the prices for all cars, so people were wasting more money to obtain a vehicle.

    The higher prices were a net loss overall for the people. It made no more sense than building new tanks & blowing them up (to “stimulate” the economy).

  12. Kit Gerhart Says:

    11, Most of the CFC vehicles I saw turned in at an Indiana Chevy dealer were good candidates for “retirement,” a lot of them rusted out pickups that barely made it to the dealer under their own power. Yeah, some of the junked vehicles had a lot of remaining useful life. Also, too many of the people buying the new ones were spending well beyond their means.

  13. Mike Says:

    Kit Gerhart,

    A bit more from yesterday. Leaded fuel did leave deposits on the ceramic of the spark plug. What this does is to form a shunting deposit on the ceramic. The solution for it is to make a spark that goes from zero to minus 20 Kv as quickly as possible. A normal number today might be 20-30 microseconds. Years ago, the switch (points at that time) was slower and very prone to wear. As the switch got “slower” the output of the coil and it’s rise time got slower. Then caused a reduction in the available voltage and eventually would result in misfires. Most of the replacement need was the result of slow risetimes and insufficient available Kv. The lead was not good, we are glad to see it gone, but it was not the heart of the issue.

  14. Kit Gerhart Says:

    13, That is true, regarding the shunting, but even with today’s ignition systems, the shunting was cause problems with misfire. Also, the lead deposits alloying with the plug’s electrodes caused erosion at a rate of about a thousanth of an inch per thousand miles.

  15. Mike Says:

    Kit,

    I once was involved in the making of magnetos for Chain saws/weedtrimmers. These are 2 strokers where plug fouling was a serious problem. By using capacitive discharge ignitions with a risetime of less than 5 microseconds, we were always able to fire those plugs, gook and all.

  16. RumNCoke Says:

    I sure like Barbara but I still miss Captain Chaos, Jim Hall.

  17. Kit Gerhart Says:

    15,
    My first motorcycle was a Kawasaki 500 2-stroke triple. It had CDI, but fouled plugs, I suspect because, being my first bike, I didn’t run the squirrley, wheeley-prone machine hard enough. Sometimes, pulling the cap off the offending plug 1/4 inch or so would get it firing again, as the “booster gap” plugs being advertised at one time.

  18. George Ricci Says:

    I do not agree with the ALG division of TrueCar projecting that used car prices will fall. With ever increasing fuel mileage regulations kicking in, automobile companies will be forced into more expansive light weight materials and dual powertrains. This will cause new car prices to jump dramatically forcing lots of people back to the used car market, which in turn will cause used car prices to increase.

  19. Kit Gerhart Says:

    18, ….or maybe, the size of vehicles in the U.S. will gravitate toward what is already the norm the rest of the world, where most people don’t use 5000 pound trucks to transport one person around town. Yeah, the price of huge SUV’s will increase to achieve better mpg, but maybe fewer people will feel the “need” for a huge SUV.

  20. HtG Says:

    19 looks to me like there’s more and more small SUVs around. Watch soneone get in; so easy. It reminds me of pre-war cars.

    Bonus; I complimented the owner of a new Escalade today. In bone white that thing looks great, and not massive. Winner for GM.

  21. HtG Says:

    Lexus GX spotted in WholeFoods lot. It’s shit. Make it go away

  22. Kit Gerhart Says:

    21, A Toyota Highlander for an extra $15-18K. Maybe that is how they can sell a basic Prius for such a good price.

  23. HtG Says:

    First one I’ve seen, Kit. I just cannot. It was even gloaming time. Haul it away, Akio.

    Now that ‘Slade? Mr. Welburn requires a few stock options. Not too many, we want more design.

  24. Kit Gerhart Says:

    22, Oops, I meant 4Runner, not Highlander.