AD #2148 – 2018 Subaru Crosstrek Details, VW Selling Off Assets, Honda Reveals Redesigned 2018 Accord
July 17th, 2017 at 11:56am
Runtime: 9:23
To watch this episode on YouTube click here.
- VW Selling Off Assets
- Tesla Plans More Gigafactories
- 2018 Subaru Crosstrek Details
- Ford Updates Transit Custom
- Honda Reveals Redesigned 2018 Accord
- Surprising Bolt Teardown Results
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On today’s show…Honda redesigns the Accord in a battle to save passenger car sales…VW is looking to sell off assets to raise cash…and a tear down of the Chevy Bolt EV shows that it’s cheaper to make than most people thought. All that and more coming right up on Autoline Daily.
Welcome to a brand new day in the life of the amazing automotive industry.
VW SELLING OFF ASSETS
Volkswagen’s diesel scandal is costing the company tens of billions of euros. So to pay for those costs and maintain its investment in electric vehicles, VW is cutting costs by laying off employees and selling off assets. It’s already put Ducati up for sale. And now Reuters reports it’s considering selling transmission maker Renk, which is owned by VW’s truck brand MAN. VW is working with Citibank to sell Renk, which is estimated to be valued between 600 and 800 million euros. Several private equity companies are interested in buying Renk, but a sale to non-NATO buyers could be complicated because it’s a supplier to the defense industry. And we think that VW could be forced to sell other assets to raise more cash.
TESLA PLANS MORE GIGAFACTORIES
If electric cars really catch on in a big way, automakers are going to need a lot more manufacturing capacity to make batteries. And that’s why Elon Musk claims that Tesla is going to build two or three more gigafactories just in the United States alone. That would be enough to power 1 million EVs. Tesla expects to sell half a million Model 3’s a year, and expects equal demand for its future lineup, including the Model Y, which will reportedly be a low cost compact crossover. But building those gigafactories won’t come cheap. They cost about $5 billion apiece.
Still to come, a look at the all new Subaru Crosstrek and Honda Accord.
2018 SUBARU CROSSTREK DETAILS
Subaru has seen its sales go up in the American market for every single month over the last 8 years. It’s an amazing record and to keep the momentum going it’s rolling out an all new version of the Crosstrek. It’s known as the Subaru XV outside of the U.S. market and it’s built on a new architecture that first appeared on the new Impreza. Looking ahead to future variants it’s designed to accommodate gasoline engines, as well as plug-in and EV propulsion. This version is powered by a 2-liter flat four that’s 26 pounds lighter than before and now has an impressive compression ratio of 12.5:1. It produces 152 horsepower and 145 pound feet of torque. It also meets Level III and SULEV emission standards. It’s coupled to a CVT that offers a gear ratio spread of 7.03, which Subaru claims is the highest ratio spread of any CVT. That allows the engine to work more efficiently. It delivers 29 miles to the gallon, combined. The Crosstrek is also available with a manual 6-speed; it delivers 25 MPGs. The base price starts at $22,710, and a loaded up one will easily top $30,000. The Crosstrek is now the third best selling model in the Subaru line-up and we’ll have more information coming later this week.
FORD UPDATES TRANSIT CUSTOM
Ford offers a wide range of variants of the Transit van. They come in different heights and wheelbases and in Europe, there’s even a front-wheel-drive variant, the Transit Custom, which just got a redesign. Notable styling changes to the exterior include a whole new front fascia with a high-mounted trapezoidal grille, similar to its passenger cars. A simplified interior is dominated by a large center screen that seems to grow out of the dash. It’s powered by a range of diesel engines, which includes a new ECOnetic variant. The option is only available on the short-wheelbase version with the least-powerful engine, which gets a unique calibration and auto stop/start. Other features of the option include low-rolling resistance tires, a speed limiter of 62 miles-per-hour and Ford’s Acceleration Control technology. Acceleration is limited if the van is empty or only half loaded, acceleration is progressively limited as speed increases and the driver is prompted to shift earlier. Fuel economy can be improved up to 15% this way. The best-selling commercial vehicle in Ford’s Europe lineup will be available early next year.
HONDA REVEALS REDESIGNED 2018 ACCORD
We recently showed you the all-new Toyota Camry, so now here’s Honda’s response: the 2018 Accord. And it’s a pretty big redesign as far as the Accord goes. Senior Vice President of Honda, Jeff Conrad, called it the most dramatically-styled, fun, and sophisticated Accord yet. The new exterior is sportier, with dual-exhaust, a sweeping tail, a longer hood, lower seating position, and shortened overall length. The interior has had a refresh as well, with a larger touch screen, thinner A-pillars for better visibility, and more cabin space thanks to a longer wheelbase. Honda showed off the Sport, Touring, and Hybrid trims, which will be offered in a 6-speed manual or 10-speed automatic. What’s more is there are two new turbo 4-cylinders, making it the first turbo Accord. Pricing and fuel economy are yet to be announced, but are expected soon. Even though the sedan segment is shrinking, both Toyota and Honda believe that with expressive styling and major upgrades they can grab the lion’s share of people who still want to buy sedans.
Coming up next, the Chevy Bolt EV costs thousands of dollars less to manufacture than expected.
SURPRISING BOLT TEARDOWN RESULTS
UBS, the giant Swiss financial firm recently contracted Munro & Associates to teardown the Chevy Bolt EV to determine its manufacturing costs. To Munro’s surprise the Bolt costs thousands of dollars less to manufacture than first thought. On last week’s Autoline After Hours Sandy Munro was on the show and in the following clip he talks about that teardown.
(The AAH preview is only available in the video version of today’s show.)
There’s a lot more great insight like that in the show, so check it out on our website, Autoline.tv or look for it on our YouTube channel. And speaking of Autoline After Hours, this week we’ll be talking about the upcoming Concours d’Elegance at St. John’s, so join John and Gary for some of the best gear-head talk in the business.
But that’s it for today, thanks for watching and please join us again tomorrow.
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Comments (16)
July 17th, 2017 at 12:10 pm
I have to wonder just how much assets vw, in the end,will have to sell off. The old saying is true:”cheaters never prosper”.
July 17th, 2017 at 12:11 pm
That’s a pretty handsome new Accord.
July 17th, 2017 at 12:15 pm
I almost think Tesla is ‘pyramiding’ its investments to delay the “day of reckoning” when they no longer can say the reason for non-profits is because it is still investing in infrastructure. Just a thought anyhow.
The AAH was a pretty good show but I would have liked to hear a little bit more on the Bolt; they kind of discussed the Bolt then eroded to other topics, which while fairly interesting in itself, did dilute the main topic IMO. Another plus for the show, again IMO, was that David Welch was also along (and I always like his insight when an adjunct to the regular crew).
I see a lot of companies put their info-screen as a screen that just juts out from the dash (on this show the new Accord and the Ford), and I’ve seen it even on some M/B; I just think if GM did the same, they would be criticized of just sticking the screen as a patch-work addition. I just think these screens need to be integrated into the dash (for aesthetics and maybe even safety). And again, JMO.
July 17th, 2017 at 12:43 pm
May I suggest that when you do a story like VW selling off its assets you list currency amounts in DOLLARS, not Euros. Last I checked this still was a US based website so most of your readers are from the United States. Why make us resort to a currency converter to get a reference for the dollar amounts involved.
July 17th, 2017 at 12:54 pm
I much prefer the in dash clean look.Don’t need no steenkin’ obstructions.Massive A-pillars are enough…
July 17th, 2017 at 12:55 pm
Kit: What’s the vision like in the new vettes? Can you see out ok?
July 17th, 2017 at 1:10 pm
I hate the styling of the new Accord. Honda first put the big chrome shields on it’s Acura vehicles. Acura is slowly losing those big wide front chrome nose shields for more traditional grills while Honda has added them to their vehicles, Ugly IMHO. OEM’s need to concentrate more on the driving experience and safety with only mild tweeting of the exterior. Case in point the new Toyota Camary. The previous Camary model was sleeker and better looking than the 2018 model. The Old Saab 900 and boxy Volvo’s of my childhood are memorable vehicle shapes and of course the eternal VW Bug. Retro Styling is in, but change without true purpose is wasteful!
July 17th, 2017 at 1:35 pm
I took the wife with me to test drive a new 2017/18 Jeep Compass. The kids are grown and I am looking to right size my next vehicle. I am in not rush and the New Compass is on my short list. The Salesman was a pleasure, no ridiculous taking a copy of my driver’s license. He just got the keys and we when for a test drive. Any man who brings his wife for a test drive is a serious buyer. I was looking for a fully loaded Limited model but he had the keys to a base. We drove the base “Sport” and the wife agreed, it’s engine was busy and the interior was too tight for our liking. The ride was good but we turned off the “Stop/Start” technology by the second traffic light. The styling is very cute to quote the wife but the interior space is way to small.
We did not even consider moving up to the Cherokee because of the front end styling and horrible head lights and slanted grill. If Jeep would restyle the front facia of the Cherokee we would have considered taking a test drive. We are downsizing from a vehicle which is the same size as a Grand Cherokee so why bother with a test drive. Mike Mannly is on the right track with the styling of the New Compass. All he has to do is graft a blending of the Compass’s and Grand Cherokee’s headlight and front fascia onto the Cherokee and those would be like hot cakes. I am in no rush for a new vehicle.
I hope the rumors are true about a five passenger Honda Pilot. The New Pilot is too minivanish for my taste. A five passenger Honda Pilot was a “Sport” added to it’s name is fine with me. The “Passport” or “Element” nameplates would be suitable for this new vehicles so that it could compete in the class against the soon to arrive Ford Bronco.
July 17th, 2017 at 2:23 pm
#5 – Not Kit, however, no issue with vision out of 2016 Corvette Coupe. Good friend with 2015 Convertible does bemoan lack of Blind spot mirrors on his vehicle. Of course he has become used to them on his other vehicles.
July 17th, 2017 at 3:44 pm
To MJB, I agree with Lex. The new Accord exterior is absolutely ugly from every angle. It is not as overly styled as the Civic, but it does have the nutty, Civic-like side window theme.
It seems Honda, Toyota, and Nissan are trying too hard to distinguish their cars. In the process, they are making Subaru and Mazda look very attractive.
July 17th, 2017 at 4:00 pm
The new 2018 Honda Accord—a superb car by any standard—is certainly bold and new, yet one wonders if the decision to drop the V6 in favor of a new, top-of-the-line 2.0 liter turbocharged engine (252 hp and 273 pounds-feet of torque) will sit well with some customers. It’s almost akin to “downgrading” from a six to a four, regardless of the level of sophistication.
On the other hand, Toyota’s “most-important-car-in-the-world,” (as one magazine writer once said) new 2018 Camry has an upgraded 3.5 liter DOHC, variable-timing V6 with direct injection and 300+ horsepower. This engine is known to be remarkably durable and efficient, delivering nearly equal fuel economy to the Toyota four cylinder. Toyota appears to have a leg up here, but it’s hard to tell. “…My car has a direct-injection 3.5L V6 with over 300 hp; you’ve only got a turbo four with 250 hp, yet we paid the same price….”
There is certainly a lot on the line for both companies, and it will be interesting to see how this all plays out. Both cars are bold and more exciting than before; the Honda’s front-end treatment is awkward, but otherwise, these cars should create new excitement in the sedan segment.
July 17th, 2017 at 4:25 pm
5, 8 The vision to the front, side, and rear is decent. The view out the rear quarter, while not great, is better than Camaro or Challenger, with their really wide C pillars. The triangular rear side windows of the ‘Vette help.
The A pillars of the ‘Vette seem wider than the ones on a 2010 Mini, but not too bad.
July 17th, 2017 at 4:31 pm
Speaking of the new Accord, will there be a coupe? They seemed to have been trying to kill off the Accord coupe for a while, offering only the Model T color palette with some powertrains, so maybe it will be finished. I hope they keep it, though.
July 17th, 2017 at 5:16 pm
Just some more BS from Elon Musk to boost the Tesla stocks. Where is he going to get that kind of money when he can not even make a true profit. Nnow that this BS is out, watch the stock climb even harder. When reality sets in, the stocks will crash like no one has ever seen.
July 17th, 2017 at 5:58 pm
@10 – Honda cars made their reputation on 4-cylinder engines. As you recall, the 1st V6 in an Accord was shoe-horned in, and required a stretched front end. It’s added weight and made it a very marginal improvement over the I4.
I suspect Honda engineers are happy to not have the weight and packages inefficiency of the V6. Hyundai and Ford engineers have been enjoying the space freedom for about 5 years.
July 17th, 2017 at 5:59 pm
@ Kit: Thanks for the ‘vision review’ on your vette.I have been curious about that. As to the coupes,from what I see the younger folks driving,high school on up,it seems to be 4 doors if they are driving a car.Not many 2 door cars around other than 3 series.Oh yeah,very few of these kids have a manual trans…..sigh.