AD #1951 – Chevrolet Reveals 2018 Equinox, Tesla Sues Michigan, Threats to Auto Industry Growth
September 23rd, 2016 at 11:49am
Runtime: 10:25
To watch this episode on YouTube click here.
- Chevrolet Equinox Gets Turbo Diesel
- Bentley Bentayga Gets 48V Diesel
- Smart fortwo EV Gets Limited Range
- Lexus UX Has Holographic Displays
- Tesla Sues Michigan
- ZF Emergency Steering
- Auto Industry Threats
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On today’s show….despite VW’s emissions scandal other automakers still support the diesel engine…ZF wants your car to automatically steer away from an accident….and Tesla files a federal lawsuit so it can sell cars directly to consumers. All that and more coming right up on Autoline Daily.
This is Autoline Daily for September 23rd, 2016.
CHEVROLET EQUINOX GETS TURBO DIESEL
New products are what this business is all about and Chevy just revealed an all-new Equinox. New from the ground up, it shed 400-pounds and offers a host of new features. The reworked interior features all the latest in infotainment technology as well as a 7- or 8-inch display screen. And for easier loading the rear seat now folds down to reveal a flat floor. Customers will also have a choice of three turbocharged 4-cylinder engines, a 1.5L, a 2.0L and for the first time in North America a 1.6L diesel. GM expects 40 mpg on the highway with the diesel. The 2018 Equinox goes on sale in the first quarter of next year.
BENTAYGA GETS 48V DIESEL
But GM isn’t the only automaker showing the industry hasn’t given up on diesels. Bentley will offer a diesel for the first time in its history in the new Bentayga SUV. The 4.0L V8 engine is both twin-turbocharged and electrically supercharged, and develops over 660 lb-ft of torque. It’s the same setup Audi is using in the SQ7 and as you may remember, this is an electric supercharger powered by a 48V system. This allows the supercharger to supplement the turbos to eliminate any lag. But if you’d like to learn more about 48V systems, you can check out a recent Autoline After Hours with Matti Vint from Valeo North America. Valeo are the folks that supply the 48V technology for Audi and Bentley and Matti goes into detail about the system.
SMART FORTWO EV GETS LIMITED RANGE
Mercedes-Benz took the wraps off the next-gen, electric-version of the smart fortwo. It’s powered by an 80 horsepower electric motor and a 17.2 kWh lithium-ion battery. Based on the European driving cycle, the coupe will have a range of 99 miles while the convertible is rated at 96 miles. The range for U.S. models will be revealed later, but they will likely be lower than the European ones because the U.S. test is harder. The coupe goes on sale next spring while the convertible version won’t hit dealer showrooms in the U.S. until the summer of 2017. And that really puzzles us. Why would Mercedes be introducing a car like this half a year after the Chevy Bolt EV will be out with a range of 240 miles? The smart electric better have a killer price or it’s going to be DOA, dead on arrival.
Lexus wants to put holograms in your dashboard. More on that after this.
LEXUS UX HAS HOLOGRAPHIC DISPLAYS
Earlier this month, Lexus teased a shot of a new crossover concept called the UX. Now we get to see what the interior looks like, and just like the exterior it features a jagged edge design theme. In the auto industry, the term UX refers to user experience and that’s an appropriate name for this CUV. The company says all the HMI-technology has been designed to give riders a connected, 3D experience. It features a couple of hologram displays in the driver’s instrument cluster and center console. Other technologies include, electro-chromatic windows, which work just like self-dimming mirrors, the side-view mirrors are replaced by cameras and a removable sound bar is built into the passenger side of the dashboard. Remember this is just a concept, but it sure points the way to what Lexus will be bringing out in the future.
TESLA SUES MICHIGAN
Tesla is upping the ante against the state of Michigan, which has banned the company from selling cars directly to consumers. Tesla is suing the state in federal court and seems to want a legal precedent that would apply to all 50 states. Right now Tesla can sell direct to consumers in all but 4 states, though some states put a cap on the number of stores it’s allowed to open. Up to now Tesla has been fighting franchise laws one state at a time. But by filing in federal court it could get a ruling that applies to the entire country. Both the state of Michigan and Tesla are taking a big risk. By not allowing Tesla to do any business in the state, Michigan invited this lawsuit. It should have conceded some limited number of stores. And Tesla is taking a big risk because if it loses in federal court, its sales model would be threatened. So what do you think? Should Tesla be allowed to sell cars as it wants to, or should it be forced to go through a franchised dealer network?
ZF EMERGENCY STEERING
Yesterday we showed you a four-wheel steering system that ZF is developing for full-size pickup trucks. Here’s another technology it’s working on: emergency steering. The idea is to have a car automatically steer away from an obstacle in the road if the driver does not take action. Right now the system only turns to the left but they’re still developing the technology. In future iterations it will be able to turn either right or left depending on which way the car senses is the safest way to turn.
The North American auto industry is running at record levels, but what kind of threats are looming out there? We’ll take a look into that, right after this.
ARE YOU THREATENING ME?
The auto industry went through dramatic turmoil in 2008 due to the Great Recession. Today the industry is stronger than ever. But how much longer can the good times roll? On Autoline This Week, John is joined by experts from the Center for Automotive Research and in the following clip they discuss the biggest threats the auto industry faces.
(The ATW preview is only available in the video version of today’s show.)
For more of the Center for Automotive Research’s auto industry outlook, you can watch that entire discussion right now on our website, Autoline.tv or you can find it on our YouTube channel. You can also follow us socially on Facebook and Twitter.
But that wraps up today’s show, thanks for watching and have a great weekend.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
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Comments (32)
September 23rd, 2016 at 12:09 pm
I heard on the local news that Indiana has an anti-Tesla law in the works. I missed the details, but it sounded like Tesla may be forced to stop selling directly to customers in the state.
September 23rd, 2016 at 12:14 pm
I hope Tesla wins its suit
September 23rd, 2016 at 12:19 pm
Tesla should be allowed to sell in any manner they want. I find it amusing that auto dealer associations proclaim that they are better, but still claim they need legal protection. If the franchise dealer system is really better, then it will succeed despite Tesla’s efforts, without the help of franchise laws.
September 23rd, 2016 at 12:23 pm
suv 40 mpg highway, amazing 40 hwy mpg in an suv hopefully this will be the one that forces these behind the times gas stations in U.S. to finally have diesel fuel nozzles for cars in every gas station. ford and gm are doing incredible job leading way in lightweighting and modern powertrains. ford starting with trucks f150, superduty, expedition/navigator gm with cars and now on to suv,s
September 23rd, 2016 at 12:27 pm
Considering that Tesla only sells 2 models and a 3rd coming in the future I see no reason they need to set up a dealer network . Just more overhead to drive up prices more.
September 23rd, 2016 at 12:29 pm
I had a diesel car for a while, and while not all stations have diesel fuel, enough did, that getting fuel was not a problem at all. It helped that the car, a 1.9l VW TDI Jetta wagon always went at least 500 miles on a fillup, and 700 miles a few times.
September 23rd, 2016 at 12:40 pm
#5 Tesla prices are already too high especially when you take into consideration the additional charges after you own the vehicle to update a longer mileage range for the battery which should have been included to begin with. Tesla had to have these “improvements” but was just waiting to take in more profit from their customers.
September 23rd, 2016 at 12:42 pm
As the plaintiff, Tesla is going to have the burden of proof as to why they are an exception or how the law doesn’t apply to them. Personally, I don’t see why they should be able to get around franchise laws, and frankly I wouldn’t trust that Tesla would be any better to deal with than a franchised dealer. I’d be just as interested in hearing the arguments from both sides as I would the verdict…if it makes it that far.
September 23rd, 2016 at 12:43 pm
I also hope Tesla wins it lawsuit C-Tech. I have been invited to the opening of a new Tesla Showroom in Greenwich CT early next month. I hope to see a Model 3 in the new showroom.
September 23rd, 2016 at 12:46 pm
That New Chevy Equinox likes good. I was hope that it would have been offered in a EV version.
Will the GMC Terrain have a similar body/platform structure and power plants or will it follow the Buick Envision?
September 23rd, 2016 at 1:07 pm
10 Won’t the Bolt be kind of an electric Equinox? The Bolt is a little smaller, but both are tall wagons, close enough in size that Bolt and an Eq EV would compete with each other.
September 23rd, 2016 at 1:16 pm
I live in MI and hope Tesla wins.
September 23rd, 2016 at 1:22 pm
I hope GM is smart enough to put the fuel filler on the drivers side with the new Equinox, all vehicles should have fuel filling on drivers side.
September 23rd, 2016 at 1:31 pm
Apparently today’s claim by the “Center for Automotive Research” about losing “1.1 million jobs” if the CAFE targets are not gutted was not in time for the ‘Autoline This Week’ discussion. But now we know how many extra jobs it takes to build inefficient cars.
Truth is blaming for ‘job loss’ is a ‘dog whistle’ dragged out whenever someone is falsely trying to change public policy. Experience has shown building efficient cars makes more jobs due to more parts and higher skills. These skills in turn lead to higher paid jobs.
Work smart and you’ll raise everyone’s pay making new industries and suppliers never seen before. Work dumb and we are condemned to the easily, off-shored industries of yesterday.
September 23rd, 2016 at 2:36 pm
Perhaps a silly question here, but what are the real benefits of having a dealer network in the first place?
It couldn’t be a means by which automotive safety or quality standards are upheld, because there are other arbiters that regulate such matters.
Perhaps this is a bit naïve (and someone here please interject if I’m missing anything, but) if I were Tesla’s legal team, I’d argue not just for Tesla’s exemption, but the abolishment of the dealership network requirement altogether. As an entrepreneur myself, I admire everything about Musk.
Fight the power, Tesla! Fight the power!
September 23rd, 2016 at 2:56 pm
15 To me, the benefits of dealer networks are that the provide a place to buy cars, trade used cars on new ones, and a place to go for warranty repairs, if needed. Yeah, the buying process is often very unpleasant, especially if you want to trade in what you have.
I’ve been to a Tesla store once, in a fancy mall in Indianapolis. They had one car to look at, and none that you could buy. They have no service facility. What do you do if the car breaks? I guess someone comes and tows it to an unknown location, and then brings it back in a few days. Are there any Tesla owners here that can tell us?
If Carmax, or someone like that had stores everywhere that sold and serviced all brands, including warranty work, that would certainly be a replacement for the current dealer networks.
September 23rd, 2016 at 3:04 pm
I’m impressed that GM is still moving forward with their diesel engine in light vehicles. Last year they announced the 1.6L turbo diesel would be in their second generation 2017 Cruze, just before the VW scandal broke. I assumed that engine option was now dead, since there has not been a peep on the engine since then. The 2017 Cruzes are now here, but it still does not show up as an option on the Chevy website or their “build it” configurator. Perhaps it will be a mid-year addition. I think it was supposed to get 50+ mpg highway in the new Cruze (the first generation diesel was was rated at 47).
September 23rd, 2016 at 3:06 pm
John,
I didn’t get to watch yesterdays AAH Live, so I was unable to ask any questions while your Fiat guest was in studio.
But maybe you can help though.
Is the Fiat 124 available for sale in the US now and if so, how much does it cost.???
I love the styling and would consider it after doing some more research and if the pricing is right.
Thanks,
RickW
September 23rd, 2016 at 3:12 pm
Automotive franchise laws are way outdated, but would also be a mess to undo. Having independently owned dealerships is a huge expense the manufactures do not have to bare, but it also means the OEMs do not have ultimate control over the quality of service and salesmanship that can make or break the reputation of their products. I suspect Tesla will have a very uphill battle to over turn the inertia of the judicial system that has upheld previous franchise challenges.
September 23rd, 2016 at 3:22 pm
18 I saw a 124 about a month ago at Port Canaveral, FL. I thought it looked really good. The base price is $24,995, according to the Fiat web site. I don’t know if that includes “destination.”
September 23rd, 2016 at 3:32 pm
@Rick W – Yes the Fiat 124 Spider is on sale in the U.S. right now. Here are the prices for the 3 trim levels, including destination charges:
Classica: $25,990
Lusso: $28,490
Abarth: $29,190
September 23rd, 2016 at 4:14 pm
They need to offer a bigger motor in the 124 Abarth. Fiat has a 2 liter turbo that, I hear, works well. Most of what I’ve read is that the Miata motor works better than the laggy 1.4 turbo engine in the 124, at least with the manual transmission.
September 23rd, 2016 at 8:19 pm
@11 – Kit, The Bolt almost looks like an egg with wheels. It is not main stream enough for my taste. The trunk space in the Bolt is very small with all seats upright. The other thing is the name “Bolt”. When people ask you what you drive and you say a “BOLT”! The next thing out of their mouths is you must be a “Nut”! You should have waited for the Tesla Model 3! It will have the similar range and its a Tesla and not a Cheap
Chevy!
September 23rd, 2016 at 8:21 pm
I thought GM was going to put the 2.5 litre four banger mated to a CVT in the new Equinox and Terrain?
September 23rd, 2016 at 10:00 pm
23, Lex
The Bolt is only a little smaller than the outgoing Equinox, and the new one, from what I’ve read, will be smaller, so with the space lost to batteries, I wouldn’t expect an EV Equinox to have much, or any more cargo space than the the Bolt. Yeah, some people won’t like the non-trucky appearance of the Bolt.
As far as the Tesla Model 3, I’ll wait and see. I may be in the minority here, but I’d rather buy a car from a place that actually sold and serviced cars, rather than from a small storefront in a mall. Yeah, maybe that’s just me.
September 23rd, 2016 at 10:05 pm
24 It looks like they will use 1.5 and 2.0 liter turbo gassers, and the turbo diesel.
http://media.chevrolet.com/media/us/en/chevrolet/home.detail.html/content/Pages/news/us/en/2016/sep/0922-2018-equinox.html
Soon, we have have to get a hybrid, if we don’t want a turbo engine.
September 24th, 2016 at 9:02 am
Personally I’d rather have a Bolt (soon) than a Model 3 (sometime), especially if I were in the market now. Chevy has been raking up the ‘awards’ lately so I wouldn’t consider them as a cheap product (meaning junk); if the Model 3 doesn’t do well, then maybe Tesla might go away (leaving orphans). I think Chevy going to be around for a while (in any event). I think Kit is spot-on in his eval on the Bolt’s size, and the Equinox, though smaller than the outgoing one, supposedly has more interior room (plus the 400 pound reduction in mass; good show there).
September 25th, 2016 at 9:41 am
I think Tesla should be able to sell direct. The problem with taking that approach across the industry is that most manufactures have put heavy demands on the dealerships that cost the retail dealership a fair amount of $$$. I have no idea what a Tesla dealership cost or what kind of investment the dealerships have made, but if there are no dealerships why should any government (state or federal) tell them how to sell their product?
September 25th, 2016 at 2:28 pm
If Tesla wins, and gains the advantage to sell directly to the public, would this then open others manufacturer’s to do the same? And if not, why?
September 25th, 2016 at 4:57 pm
Do other manufacturers even want to sell directly? If so, I suspect they would want to do so selectively, like in large markets. GM and Ford couldn’t afford to buy out all of the thousands of dealers, even if they wanted to.
September 26th, 2016 at 12:31 pm
I could see a scenario where the OEMs would sell directly for “ordered” cars that would then be delivered to a dealer for final prep and documents. The OEMs would pay the dealers a reasonable fee for that service, but it would cut out the salesman’s commission and the dealers would not have the expense of inventory for those vehicles sold directly. Dealers would continue to provide service and parts. This hybrid system would need careful balancing to keep the dealers in the loop, yet improve the overall efficiency of selling vehicles.
September 26th, 2016 at 1:55 pm
The problem I see with no dealer network for cars is trying to get service after the sale. Would you really want to have to call some big corporate office in Detroit every time your car makes a funny noise. I own an RV and the dealers on all of them are franchised but not obligated to work on them, every time you need a repair under warranty it takes several weeks to get it done, is that what people really want for there cars too.