AD #1904 – Alfa 4C Spider Gets the Axe, FCA Investigated For Sales Fraud, CAFE Mid-Term Battle Begins
July 19th, 2016 at 11:50am
Runtime: 6:35
To watch this episode on YouTube click here.
- CAFE Mid-Term Battle Begins
- China Bans Autonomous Testing On Roads
- Mercedes Bus For the Future
- How To Make Vans Desirable
- FCA Investigated For Sales Fraud
- Alfa 4C Spider To Get the Axe
Visit our sponsors to thank them for their support of Autoline Daily: Bridgestone , Dow Automotive Systems and Lear Corporation
»Subscribe to Podcast | 
| 
| Listen on Phone 
| 
On today’s show…the EPA says the auto industry is doing a swell job of meeting fuel economy standards….China bans testing autonomous cars on public roads….and Mercedes shows us its vision for future busses. All that and more coming right up on Autoline Daily.
This is Autoline Daily for July 19th, 2016.
CAFE MID-TERM BATTLE BEGINS
There’s a big argument going on over fuel economy regulations in the U.S. Environmentalists are fighting automakers who are fighting the regulators. Yesterday the EPA released its technical assessment review, or TAR, of the CAFE standards so far. Basically it says that the auto industry is on track to meet those standards. But because of cheaper gasoline prices, more people are buying trucks and SUVs than it expected. So instead of hitting a fleet average of 54.5 miles per gallon in 2025, it will probably hit 50 or 52 mpgs instead. Even so, automakers argue that the standards were set in 2012 when fuel prices were skyrocketing and that the market mix is significantly different today. It wants the EPA to ease off, especially considering that trucks standards really get tougher after 2019. But at least seven different environmental organizations put out statements saying the EPA should not back down at all. This is just the beginning of the mid-term review of CAFE standards and we’re going to hear a lot more about it. And by the way, if you want to know what kind of cars we might be driving in 2025, check out the Seat Time section of our website. We’ve got a review of the new Malibu hybrid, which already meets the 2025 CAFE standard.
CHINA BANS AUTONOMOUS TESTING ON ROADS
Autonomous technology has the chance to completely transform the auto industry. But after Tesla’s fatal accident involving a Model S driving in AutoPilot, a lot more caution is being taken. Bloomberg reports that China is banning self-driving cars on public roads until regulations are in place. The government and the police have come up with a preliminary draft for the rules but there’s no timetable as to when they’ll be approved. Companies are urging the government to speed up the process, so they don’t fall behind in the technology.
Mercedes thinks it has a clear vision of what busses will look like in the future. That’s coming up next.
MERCEDES BUS FOR THE FUTURE
A few years back Mercedes introduced the Future Truck with Highway Pilot, which is designed to drive autonomously on freeways. Now it just introduced the Future Bus with City Pilot, which, as you probably can guess, was developed for autonomous city driving. The Future Bus uses radar, cameras, and connected data to navigate through busy urban centers. It’s able to brake and steer on its own, drive through tunnels, open and close the doors at bus stops and take off automatically. Mercedes just took the bus on a 12-mile journey in the Netherlands where it encountered many of these situations. It says the bus driver never had to touch the gas or brake pedal and only had to take over the wheel when the bus faced oncoming traffic.
HOW TO MAKE VANS DESIRABLE
Anyone that has been paying attention to Tesla knows just how fast EVs can be. But new EV startup Atieva just released a video of its prototype named Edna smoking a Ferrari and Model S in a drag race. And it’s a van no less. The reworked Mercedes Vito or Metris here in the U.S. features two electric motors, two sets of power electronics, two gearboxes and one battery capable of storing 87 kWh of energy. That’s good for over 900-horsepower and a 0-60 run of just over 3-seconds. Atieva is currently just using the Mercedes van to test its powertrain system because it has enough space to easily swap out parts. But the final setup will debut in a sedan.
Still to come, Alfa is going to drop the 4C Spider.
FCA INVESTIGATED FOR SALES FRAUD
So far this year, FCA’s sales in the U.S. are up 6% and last month the company had its best sales in June in over a decade. But a new investigation by the SEC and the Department of Justice is calling into question the accuracy of those numbers. The agencies are looking into allegations by two FCA dealers who, earlier this year, filed a lawsuit accusing the company of paying dealers to report more sales than actually occurred. FCA released a short statement saying it “records revenues based on shipments to dealers and customers and not on reported vehicle unit sales to end customers.” It says the lawsuit is from a few disgruntled dealers and says it intends to fully cooperate with the investigation.
ALFA 4C SPIDER TO GET THE AXE
Alfa Romeo knew that the 4C Spider would never burn up the sales charts. Even so, sales are very disappointing. So far this year Alfa only sold 309 4C’S in the American market. That’s only 11 more than the Dodge Viper, and it’s going out of production next year. So now AutoForecast Solutions reports that the next generation of the 4C has been cancelled. Production of the car in Modena, Italy will come to an end in 2020. No doubt Alfa wants to concentrate on developing new models with better sales potential.
And that wraps up today’s report. Thanks for watching and please join us again tomorrow.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
Share
Embed
Permalink
Comments (36)
July 19th, 2016 at 12:03 pm
Hey Sergio, I guess Americans are not stupid enough to swallow all this passion of driving you tried to push with your blessed Fiats and Alfas? Nothing passionate about having to call Tony every couple of months to fix the damn things
July 19th, 2016 at 12:03 pm
Alfa 4C Spider: instant classic a la 2005-06 Ford GT?
July 19th, 2016 at 12:05 pm
Maybe the 4C should have been priced closer to its sister the Mazda Miata…!! I guess consumers don’t think it is worth the difference.
July 19th, 2016 at 12:07 pm
Now, THAT’S a ‘Swagger Wagon’ (Edna)
July 19th, 2016 at 12:18 pm
3 The 4C is most closely related to the KTM X-Bow track toy. The FCA product related to the Miata, is Fiat 124.
July 19th, 2016 at 12:20 pm
Well, if you’re taller than 5″ 9″ you won’t be fitting in a 4C any time soon. Maybe Alfa can make a 4DD model for the Americas!
July 19th, 2016 at 12:21 pm
#3: the sister car to the Miata is the new Fiat 124, not the Alfa 4C.
July 19th, 2016 at 12:23 pm
I didn’t even know they were selling Alfas here in the US yet. I haven’t seen any in SE PA. Seeing less and less Fiat 500s also.
July 19th, 2016 at 12:26 pm
A Miata-based Alfa might make sense, as an up-market 124, if it’s not too pricey. Use the 1.75 Fiat turbo used in the 4C, which would be a performance upgrade over the Miata and 124.
July 19th, 2016 at 12:28 pm
So both models of the 4C are being canceled, or just the Spider?
July 19th, 2016 at 12:43 pm
When The 4C was being talked about prior to being introduced, I predicted that Americans wouldn’t buy a car with 1) no power steering 2) had no room for a suitcase & 3) required a person to be a contortionist to enter and leave. I was laughed at by the self proclaimed experts.
July 19th, 2016 at 12:48 pm
Poor Sergio. He so wants the Alfa brand to succeed that he has invested enormous amounts of capital into the brand with little to show for it. As for F.I.A.T., giving dealers only a couple of models to sell is crazy. Basing everything off of a single line might of worked in the 80′s for Chrysler (the K-Car & offspring), but many variations of a car that didn’t sell very well in its original form is not a good basis for product. More models are needed. The last time FIAT was in town they had products like the 128, 131, 124 Spider and the X1/9.
July 19th, 2016 at 12:50 pm
@XA351GT – I’ve only seen two out on the road. And not even John has had a chance to drive one. The first one I saw was a year ago and had a “manufacturers” plate. So, it was likely an FCA employee or a member of the media. I had not seen another until just a week ago, which I spotted at the doctors office. Good looking car in person, though.
July 19th, 2016 at 12:53 pm
@GM Veteran – Both models of the 4C are being canceled. Sorry for any confusion.
July 19th, 2016 at 12:59 pm
Sean: in fairness to FCA though, I would not expect to see a relative exotic like the 4C in the Detroit area (other than the occasional manufacturer’s car).
July 19th, 2016 at 12:59 pm
#11 I just read a couple articles about the 4C as a daily driver, and both said that no one would want to do that, even if you don’t need any space for cargo.
July 19th, 2016 at 1:07 pm
12 The strange thing to me, is that they call all of the U.S. market “500,” except for the 124. The 500, 500L, and 500X are totally unrelated, except that they share some powertrain parts.
To me, “500″ seems an odd name, even for the smallest one. The car it’s named after had a rear mounted, air cooled 500cc two cylinder engine, thus the name. I don’t see much connection with the current car(s).
July 19th, 2016 at 1:37 pm
#15: What? You think just because its the Motor City that no one in the Detroit area is interested in exotic cars? The area has several Porsche dealers, a Ferrari dealer, a Maserati dealer, a Rolls Royce dealer, a Bentley dealer and numerous Mercedes-Benz, BMW and Audi dealerships. You don’t have to go to LA to find exotic car enthusiasts and owners.
July 19th, 2016 at 1:37 pm
I know I’m supposed to love the 4C (because just about all the car-mags told me so); I just couldn’t make a connection and neither have many others apparently. Alphas have always been scantly distributed in the U.S. (even in the sixties/seventies when they had, at least, an exclusive following) though small even then.
July 19th, 2016 at 2:08 pm
No great loss! I am speaking about the Alpha 4C. I always thought it looked very much like a Tesla Roadster anyway.
RumNCoke # 6, I like the way you think, DD =Double Deluxe!
July 19th, 2016 at 2:16 pm
The 4C was as DOA as the Cadillac ELR. Anybody could have predicted this in both cases. You have to wonder the level of competence of the executives who make these decisions.
July 19th, 2016 at 2:35 pm
On the contrary Bob, you are correct about the laughably overpriced ELR. It was doomed from the day Cadillac announced its pricing. However, the Alfa Romeo 4C was planned to be produced in limited numbers and sold in many markets worldwide (unlike the ELR). So, it doesn’t have to sell like a Camry in the US to be a successful product for FCA. Honestly, I think half of its purpose was to breathe new life into the Alfa Romeo brand in the US, paving the way in a positive light for less expensive models to follow that are intended to sell in higher volumes. Like the 8C that preceded it, the 4C was always meant to be a halo car and generate publicity more than profits.
July 19th, 2016 at 2:46 pm
The 4C is to FCA, what the GT is to Ford, only much less expensive. Both are limited production, limited model run toys, but for people with different amounts of disposable wealth.
July 19th, 2016 at 3:27 pm
#22. You’re right, the Alfa 4C was done to breathe life into the Alfa brand. But it would have made a lot more sense (in the US) if there were several other Alfa models in the showrooms: use the 4C to lure them in, then sell them something more practical. The should have kept their powder dry for the right moment.
July 19th, 2016 at 3:50 pm
I agree wholeheartedly John. Timing seems to be their Achilles heel.
July 19th, 2016 at 4:04 pm
I believe the 4C needed to make a dent in the market but it came in too bold i.e., too expensive. Had it gained a little momentum, perhaps it may have served it’s purpose as a flagship.
July 19th, 2016 at 4:07 pm
If someone can come up with a modern day affordable Beemer 2002 or 318I type car, they could make a killing.
There is a market for it.
July 19th, 2016 at 4:49 pm
27 That would be a good market for Alfa. Don’t they have something in the works kind of like that?
The 4C is, basically, a street legal track toy. It costs about the same as a base Corvette, but isn’t nearly as practical as a daily driver, and a Corvette isn’t that practical.
July 19th, 2016 at 5:12 pm
Alfa 4C what? huh, The unwashed masses didn’t even know that this car existed. Yea it looks great, but who was going to pay 70K for what looks to be a MR2 look alike? Perhaps Alpha would have better presence if it cross marketed with Dodge or Chrysler. Or maybe tie it into other Fiat product like Chevy did a few years back with the cruz/cavalier and vette. Young buyers most likely have not experienced Fiat products older folks remember them as junk.
July 19th, 2016 at 6:21 pm
To me, a much better way to re-intrudece Alfa Romeo to the U.S. would have been with a much less, uh, specialized car than the 4C. Even an Alfa version of the Miata, with a decidedly Italian powertrain would have been better. With only one Alfa product, it needed to be sold with something else, probably Fiat.
Bring on that rear drive Giulietta, though. That would be interesting.
July 19th, 2016 at 6:29 pm
In the 80′s they had a 4 door sporty car called the Alfetta, I recall testing one and it was quite an eye opening experience for someone who had only driven large, clumsy handling American cars
July 19th, 2016 at 6:30 pm
Kit if they price it anywhere like the 4C, then it wont sell.
July 19th, 2016 at 7:04 pm
Yep, they’d need to price it well, below the 2 series and IS.
July 20th, 2016 at 2:58 pm
I love all of these “car enthusiasts” who can’t even spell “Alfa,” ragging on a car they know nothing about.
Stick to your Honda Civics.
July 20th, 2016 at 10:11 pm
I actually just bought a 4C last week and yes, it is a VERY specialized car for a very small NICHE market. That being said, that’s why I LOVE the Alfa 4C. I can’t go anywhere in this car without people taking pictures, talking to me about it, thumbs up, tons of comments etc. Is it a daily driver for someone that drives a Buick? NOPE. It’s a TOY that is an ABSOLUTE blast to drive. If you’re looking for a supercar that you can afford this is the car. What it lacks (power steering, electronic gizmos, soundproofing etc) is what makes it such a great car. It’s not for everyone but if you had the chance to own one you would ABSOLUTELY LOVE IT. It was also predicted it would be a car with no more than a 5 year run so we all knew that.
July 22nd, 2016 at 10:14 am
35 Thanks for that info.
Yep, a 4C would get a lot more attention than a car like my Corvette, or about anything else, except some of the megabuck priced exotics. Actually, I probably wouldn’t mind a C4 as a daily driver, to got out to breakfast, etc., but I doubt I’d like driving it between Indiana and Florida.