AD #1994 – New Jeep Grand Wagoneer Cancelled, VW Axes U.S. Diesels, BorgWarner Electrifies Business Strategy
November 23rd, 2016 at 11:51am
Runtime: 8:23
To watch this episode on YouTube click here.
- Jeep Grand Wagoneer Cancelled
- VW Axes U.S. Diesels
- Mercedes May Drop U.S. Diesels
- New Hybrid Pick-up Truck
- BorgWarner Electrifies Business Strategy
- You Said It!
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On today’s show…Volkswagen won’t sell diesels in the U.S. anymore…plans for a new Jeep Grand Wagoneer have been scrapped…and John answers your questions and comments in You Said It! All that and more coming right up on Autoline Daily.
This is Autoline Daily the show for enthusiasts of the automotive industry.
JEEP GRAND WAGONEER CANCELLED
The Jeep brand keeps expanding its lineup into new segments and it had plans to move more upscale, moving a whole segment above the Grand Cherokee. But now Autoforecast Solutions reports that plans for the 2019 Jeep Grand Wagoneer have been cancelled. The problem seems to be that the architecture for the Grand Cherokee, which is also shared by the Dodge Durango, simply cannot accommodate a vehicle that is a full segment size larger. The solution may be to build the Grand Wagoneer off the Ram pickup platform instead. The most expensive Jeep now is the SRT Grand Cherokee, which costs about $65,000. Jeep sees the opportunity to go further upscale than that.
VW AXES U.S. DIESELS
Well this could be the least surprising news we’ve reported all year. Volkswagen isn’t going to sell diesels in the U.S. anymore. CEO Herbert Diess told German paper Handelsblatt that the company is “working under the assumption that we will no longer offer diesel vehicles in the United States.” That’s a big blow for the company, especially its dealers. Through October, VW’s sales are down 13% in the U.S., mainly because it hasn’t been able to sell diesels since last year.
MERCEDES MAY DROP U.S. DIESELS
But VW isn’t the only German automaker looking to dump its diesels in the U.S. Automotive News reports Mercedes is considering doing the same due to slumping demand. It’s currently conducting consumer research to see if it should dump diesels. The EPA is also conducting stricter tests in the wake of the diesel scandal and that’s delayed certification for several diesels that Mercedes wants to come out with. And that’s also causing the company to rethink its diesel strategy.
And we’ll be back with more right after this.
NEW HYBRID PICKUP TRUCK
Back in 2009 GM introduced hybrid versions of its Silverado and Sierra pick-up trucks. Those models ended up being discontinued due to low sales. But now another company is jumping into electrified trucks. The Workhorse Group, which makes electric delivery vehicles and drones, is getting set to come out with an extended-range pick-up concept called the W-15. It has an estimated 80-mile range on electric power and it’s equipped with a gasoline engine that will kick in once the battery is depleted. The truck, which is aimed at fleet buyers, will make its official debut at the ACT EXPO in California next May.
BORGWARNER ELECTRIFIES BUSINESS STRATEGY
BorgWarner is a traditional powertrain supplier that can trace its roots back to the 19th Century. Its expertise was primarily centered around the internal combustion engine. But in today’s increasingly electrified world, the company is modifying its business strategy. Last year it bought Remy International, the company that was once known as Delco Remy and used to be a part of General Motors. Now Borg supplies belt-alternator starters, a very low cost way to achieve stop-start technology and mild hybrids. It then combined its own transmission expertise with electric motors from Remy to create this EV drive system that is already being used in China, though BorgWarner will not identify who its customer is. It also created this in-cabin heater for electric cars that runs on high voltage, up to 800 volts, but uses very little battery power. BorgWarner is doing a lot more than what we just detailed here, but it’s a great example of how automotive supplier companies are adapting to changes in the market.
Coming up next, John answers your questions and comments in You Said It!
YOU SAID IT!
And now it’s time for some of your feedback.
A number of you, not surprisingly, had something to say about the presidential election in the United States.
Nobody Important says, “The U.S. automotive industry has been crippled by left-leaning ideals for half a century. Let’s try it Trump’s way for a change. We might actually rediscover how to win again.”
I’m not sure I would say crippled, Nobody Important. The industry is enjoying all-time record sales and all-time profits. That doesn’t sound crippled to me.
Centurion1973 is on the other side of the fence. “I expect a disaster if Trump implements his insane ideas. But hopefully Senate + car makers lobbyists will stop anything too crazy.”
Actually, the lobbying group is already asking Trump to back off on regulations.
And finally Tail Finz asks, “Do you think Trump will be good for the automotive industry, John?”
I think Trump has to be very careful and remember the law of unintended consequences. Ripping up NAFTA and cutting back on fuel economy standards could actually hurt the American auto industry. And I’ll have a lot more to say about this next week in Autoline Daily.
DocWolph wants to know, “Will full-sized trucks get 48-volt systems first?”
Good question Doc. These mild hybrids would be perfect for trucks. I remember a few years ago Mark Reuss at General Motors said no trucks would be able to meet the fuel economy standards after 2019 without some kind of electrification. And the 48 volt systems are perfect for trucks and SUVs.
Didi Mulyadi wants to know why the Ford EcoSport will not be sold in the U.S. until 2018. “Why so late? By the time EcoSport arrives, other companies already have second gen or third gen models and improved their CUV.”
That is the million-dollar question. Why is Ford waiting so long to get the EcoSport into the American market? It makes no sense whatsoever, and Ford offers no explanation. To me this sounds like a major mistake and I’m sure somebody in the audience knows exactly what’s going on.
Kit Gerhart wants to know, “On cars with multiple drive modes, like my Corvette, are the tests done in the mode that would give the best mpg, probably “eco” on my car, or the default, which is “touring” on the ‘Vette?”
Man you people ask good questions! I don’t know the answer but we’ll get you one.
TJWatson59 notes that “When new car photos are shown, they almost always now have a license plate painted as the car color. Why even put one on a car then go thru all the trouble of painting it to blend in as if it weren’t there for publicity photos?”
TJ, I noticed the same thing and don’t have an answer for that either. Looks like I’ve got some phone calls to make.
Thanks for all your questions and comments, we really like getting them. But with that we wrap up today’s show. Remember, we here at Autoline are closing down for the next two days for the Thanksgiving holiday. We hope you enjoy Thanksgiving and we’ll see you back here on Monday.
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Comments (27)
November 23rd, 2016 at 12:28 pm
HAPPY THANKSGIVING to everybody.Oh boy,I can’t wait to smell that turkey in the oven tomorrow.This is my favorite holiday.Good family,good eats = heaven on earth.
November 23rd, 2016 at 12:29 pm
bummer about the diesels. Seems like when they are about to catch a sales hold in the US, some OEM kills it. In the 80′s that was GM, in the 2010′s it is VW.
November 23rd, 2016 at 12:30 pm
John, Sean, the whole Autoline crew and my fellow car-nuts; Happy Thanksgiving everyone.
November 23rd, 2016 at 12:31 pm
Without diesels, VW is losing one of the few rational reasons to buy a VW in the U.S. Without the diesels, I can think of only one rational reason to buy a VW, they have the only “affordable” car-height real wagon in the U.S., with the Golf Sportwagon.
Regarding Benz diesels, I have a suggestion. Sell the C-Class wagon, with a 4 cylinder diesel, and manual transmission. A few years ago, I had a rental like that in France, and loved it. Also, they should sell the E-250d wagon in the U.S., with rear wheel drive. That would be a very nice, though pricey, car.
November 23rd, 2016 at 12:32 pm
AW crew, and everyone, have a great holiday.
November 23rd, 2016 at 3:42 pm
You can blame EcoSport timing on the highly unique U.S. regulations – unbelted and unique dummies, IIHS, etc.
November 23rd, 2016 at 4:06 pm
Kit, they also need to work on their reliability, I was just offered a great deal on a used Jetta, not taking it for that exact reason. It’s approaching the age and mileage when things start to fail. I wold not hesitate if it were a Honda or Toyota.
November 23rd, 2016 at 5:42 pm
Saw a rendering of the Jeep Wrangler JL Pickup on the internet, appears as a four door with a small box, adapted off of the Unlimited. Do you know if FCA is going to offer a “regular cab” (2 door) version with a longer bed?
November 23rd, 2016 at 6:16 pm
8 I’m not into pickups at all, but I thought the past concepts of 2 door, regular cab Wrangler-based pickups looked really cool. I hope they build something like that.
November 23rd, 2016 at 6:42 pm
In addressing the “test mode” question, I would assume that testing would be done in the “worst case scenario” mode. Having worked with EPA in the past, that was always the criteria used for establishing monitoring points.
November 23rd, 2016 at 6:55 pm
10 That doesn’t seem too likely, with my Corvette. In “worst case” track mode, the shift points are noticably higher, and it doesn’t shut off cylinders under light load. I’d be surprised if it got 29 mog highway under those conditions. We’ll see what John finds out.
November 23rd, 2016 at 9:07 pm
So is Chrysler still going ahead with the Grand Wagoneer or are they putting it on ice like their car line up. John, is Chrysler in bad finicial trouble to not be able to continue to be a full line auto manufacturer?
It’s time they start coming out with products like they did in the 80′s and 90′s!!!!
I know I would have been in a long line to buy the Grand Wagoneer.
Come on Chrysler lets get together.
November 23rd, 2016 at 10:07 pm
To me, it makes sense for Chrysler to cancel the Grand Wagoneer. The monster SUV market is unlikely to expand, and GM almost owns it. It would be expensive to do a Grand Wagoneer properly, and sales of maybe 10-15K a year wouldn’t justify it.
November 23rd, 2016 at 10:34 pm
Is it possible the late arrival of the Eco(not echo)Sport is the new Bronco? Ford hasn’t specified if it will have two or four doors. Most if not all suv/cuvs are four doors nowadays. It’s also reportedly based on the new Ranger platform which has an available crew cab.
November 24th, 2016 at 4:54 am
John the car market is not as strong as it should have been. If you think about the aging used car market. People are staying out of the new car market much longer. It’s not that the cars are built that much better but that for many car owners to replace what they had has become impossible.
The regulation on safety/fuel/EPA ect Have added to a ever growing MSRP that many can no longer afford. I have a 04 Chevy Trailblazer LT 4wd it would run me 30% more to replace it today then when I bought it new. At the same time my wages have increased about 20%. Honestly, looking at a new equivalent with the options I have, the payment is $50 less then my mortgage.
The regulations are needed and a slight push is good but at what point is it good enough. Just take safety. You are never going to get to 0 accidents. Cars these days are pretty darn safe when you look at them. So with a diminishing return at what point do you scale back resources and staff?
November 24th, 2016 at 7:26 am
14 The Ecosport is Ford’s competition for Trax, HR-V, etc. It has nothing to do with a revived Bronco, if there is one. I guess they could called the Fiesta-based Ecosport Bronco, but I doubt that they will.
November 24th, 2016 at 7:47 am
I believe one of the reasons the Ecosport will be a late arrival is because it will need some modification to meet the requirements of North America; the existing Ecosport is a world car and is built differently (in different locales).
November 24th, 2016 at 8:20 am
The regulations are a double edge sword. Yes, they do make cars more expensive, but look at the advancement in fuel economy, safety, and performance we have today. Economy and safety would not be as advanced as they are without the government regs. Yes, our government has probably gone too far and the offices have gotten too big. But there should be some middle ground. Trump needs to evaluate and trim down the system.
I don’t see that they have hurt the OEM’s that much, as we see record car sales and good profits reported. Just me.
November 24th, 2016 at 8:36 am
One government regulation that I’d like to see added, is that any place that sells gas, must have free air for tires.
November 24th, 2016 at 9:03 am
#19 I think we do in CA., but not sure. I check/fill mine at home.
November 24th, 2016 at 9:33 am
Its sad to here that Jeep will not be producing the Grand Wagoneer. What has me scratching my head is their reason for not doing it. Based on the Grand Cherokee, that platform/architecture was originally developed along with the vehicle that is now the GLE, when Mercedes and Chrysler were one company. From there, Mercedes went on to build the vehicle that is now the GLS from those same bones. How is that Mercedes can use those same building blocks to make a full vehicle and FCA can not?!? Makes not since!
November 24th, 2016 at 12:09 pm
Would Chrysler be able to sell 10-15,000 Grand Wagoneers at Mercedes prices? The Benz is about $70K with a V6, vinyl seats, and no “keyless go.” The price quickly escalates from there.
If they could sell the Jeeps at those prices, maybe they should build such a vehicle, but I doubt that many people would want to pay $70-100K for the Jeep, even if it were as good as the Benz.
November 25th, 2016 at 3:06 pm
Even the Grand Wagoneers of old were low-volume; those that had them seem to have loved them but if FCA went ahead, it would probably be for prestige and not volume. I don’t think FCA needs more prestige vehicles; it needs to move some ‘iron’ (sales).
November 25th, 2016 at 3:30 pm
I believe there is enough market for an upscale Jeep. The Commander was a victim of poor timing, coming out when the price of gas skyrocketed and the economy crashed causing the Hummer brand to close as well (Hummer in 2009, Commander in 2010). At that time, no one knew how bad things would get, how high the price of gas would get, or how long before a recovery. Now, I think more people with disposable income would be willing to buy a name brand high end vehicle like this, especially if it has some autonomous features to make it easier to drive a land barge on the city streets!
November 25th, 2016 at 6:54 pm
IF FCA did a Grand Wagoneer, what should it be, an expensive, but “trucky” Escalade/Navigator competitor, an exoensive, but luxurious GLS competitor, or a less expensive, trucky Tahoe/Yukon/Expedition competor? I don’t see enough potential sales to justify building it, in any of these cases. Yeah, I could be wrong.
November 28th, 2016 at 9:09 am
I think it should be a “trucky” Escalade/Nav competitor. Built on the Ram platform, it will have the Ram volume to help lower cost a little. They could even offer a cheaper version as a Ram Charger to increase volume even more. I wouldn’t be buying one, but I think the Jeep name would help sell them better than the “Aspen” name did. People who buy those large luxobarges rely heavily on brand image and if they do it right I think Jeep can exploit that as a rugged alternative to Escalade or Land Rover (I don’t think Navigator will do as well as a Grand Wagoneer).
December 3rd, 2016 at 11:43 pm
John,
Regarding license plates on advertising cars, I think the plates were painted body color so as not to distract from the car’s appearance. The choice of the license plate letters and numbers gave the sales folks a chance to get their initials on the plates. One of those in house secrets that only those in the “know” knew about.