On today’s show… Tesla strikes a deal to build cars in China…Audi shows off a radically different active suspension on the new A8…and the University of Michigan is gearing up to test fully autonomous shuttles. All that and more coming right up on Autoline Daily.
 
This is Autoline Daily the show for enthusiasts of the automotive industry.

AUDI A8 ACTIVE SUSPENSION DETAILS
Audi has been teasing bits and pieces about its upcoming A8 sedan. Earlier this month we looked at the car’s standard 48V hybrid system. And now the company is sharing details about its suspension system. It’s a fully-active, electromechanical suspension, which controls each wheel individually, with an electric motor that’s powered by the 48V system. By using its front camera, the car is able to detect bumps or potholes and automatically adjust the suspension for a smoother ride. It’s also able to reduce rolling when cornering and minimize pitch when braking and accelerating. But one of its most intriguing features is safety related. If the car detects a side impact at more than 15 MPH, the suspension lifts the exposed side of the vehicle by up to 3 inches within a half a second. By doing this the collision is targeted at stronger areas of the car, which reduces the load on the occupants by up to 50%. The new Audi A8 makes its official debut in Barcelona next month.

TESLA TO BUILD CARS IN CHINA
In a move to be more competitive in the largest car market in the world, Bloomberg reports that Tesla has struck a deal with the city of Shanghai to manufacture cars there. Tesla’s EVs, like all imported cars, are slapped with a 25% import tariff, so by building cars in China the company can cut costs. Tesla will also have to set up joint venture with a local Chinese company to be able to build cars in the country. China is aggressively trying to increase EV sales. By the end of the decade it wants 12% of all new cars to be electrified. Last year that number was under 2%.

Coming up next. If you’re in the supplier community, we have a suggestion as to where you can get new business.

UPCOMING NISSAN PRODUCTION PLANS
We always like to give suppliers and tool and die companies a heads up on future product that is coming. We like to help you sniff out opportunities for new business. And here are two opportunities with Nissan. Autoforecast Solutions reports that the next generation Nissan Pathfinder will go into production in Smyrna, Tennessee in July, 2020. Also going into that plant at the same time is the Infiniti QX60. That gives you a 3-year notice of what’s coming, so happy hunting.

U OF M TO TEST AUTONOMOUS SHUTTLES
Campus commutes are a pain for students and faculty, but thanks to the French company NAVYA, they could become easier at the University of Michigan. The university has an autonomous test facility called Mcity, which is partnering with NAVYA to run two autonomous shuttles around the campus this fall. These shuttles will be free, all electric and fully autonomous. They seat 15 and will transport students and staff on a two-mile route. The shuttles will observe public reactions to the new technologies, both passenger and passersby. They will also generate 3D maps of their routes. If this initial phase works out well, the plan is to expand it to other areas of the campus.

Coming up next, it’s time for You Said It!

Now it’s time for me to answer some of your questions and comments.

Todd T saw our Autoline After Hours on the Volkswagen Atlas and how it represents the first VW designed for the American market. But he has a bit of a history lesson for us. “The First “Americanized” VW were the Rabbits that were built at Westmoreland. And they were AWFUL. They did things like garish red interiors, with really bad faux wood trim. They softened spring rates to smooth the ride (which ruined the handling). The fact there are so many at VW who don’t know their own history is troubling.”

That VW plant in Westmoreland, Pennsylvania was a disaster. The president of VWOA, Jim McLernon, was an ex-GM executive and he tried to turn the Rabbit into a Chevrolet. Jim Fuller, who ran VW marketing in America at the time, complained that they “Malibu-ized” the Rabbit. Speaking of history lessons. Jim Fuller was killed in that Pan Am jet that was blown up over Lockerbie, Scotland on orders of Muammar Gaddafi of Libya.

Kit Gerhart has a question about Ford importing the Focus from China to the US. “Do you have any data on the effect on potential buyers regarding cars from China? Does that country of origin drive potential customers away from the Volvos and Buick from China? The Focus, being a truly mainstream car, would seem a real test of that effect. People, including myself, have become comfortable with some products, like phones and computers, coming from China, but for me at least, cars are different.”

Kit, the general public has no idea where their car was built. And the vast majority of them don’t care. The Buick Envision, which is imported from China, is now the second best selling vehicle Buick has in the American market. It outsells the LaCrosse, Regal, Verano and Enclave.

Buzzerd wants to know, “John when they talk about ”sharing platforms” what are they really talking about? Is it really that much work to make a new one or is it more from a production standpoint that the benefit comes from?”

The benefit really comes from sharing components. If different models can share the same powertrain, suspension, HVAC, wiring harnesses, etcetera, you can save a boatload of money. The second benefit comes from being able to build different types of vehicles on the same assembly line. That way automakers can flex their manufacturing production to match market demand.

Roger Blose wants to know, “Does Mark Fields have a non-compete employment clause? I remember that Jim Farley did not have one while at Lexus and when he jumped to Ford, Toyota went nuts and forced all remaining executives to sign up.”

Usually, a one-year non-compete clause is pretty typical. But if you do jump to a competitor, you have to give up your pension and any other earnings you were going to get. So if one car company hires an exec from another car company, part of the deal includes the new company making up for all that lost compensation.

Barry Rector asks, “What’s your take on GM doing away with the GM Foundation and pulling their support of the Woodward Dream Cruise? There’s got to be more than their explanation.”

I think GM is trying to be much more strategic in its philanthropic donations. Now it’s going to concentrate on boosting high school graduation rates in cities, getting kids more interested in math and science, and in boosting automotive safety. The Dream Cruise is a great event, but it really does not address the issues where GM really wants to make a difference.

Thanks for all your letters and comments, we truly like getting them, so keep ‘em coming. And before we go don’t forget to join us this afternoon on Autoline After Hours for a very deep dive into the all new Toyota Camry. We especially have a very detailed analysis of the styling on that car. So join me and Gary Vasilash for the best insights into how automakers develop new products.

And with that we wrap up today’s show, thanks for watching and we’ll see you tomorrow.