AD #2318 – BMW Pulls Out of Detroit Show, Waymo Calls Out Uber, Hyundai’s Union Chief Calls EVs “Evil”
March 26th, 2018 at 11:34am
Runtime: 8:32
0:31 Waymo Calls Out Uber
1:30 BMW Pulls Out of Detroit Show
2:09 Hyundai’s Union Chief Calls EVs “Evil”
3:17 Daimler Reveals DENZA EV
4:00 Nissan to Offer Refabricated Batteries
4:50 Nissan Partners to Recycle EV Batteries
5:47 Why Buick Jumped into Wagon Segment
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On today’s show…uh-oh, another German luxury brand is pulling out of the Detroit auto show…the head of Hyundai’s union in South Korea says electric vehicles are “evil”…and Nissan is creating ways to reuse EV batteries. All that and more coming right up on Autoline Daily.
This is Autoline Daily the show for enthusiasts of the automotive industry.
WAYMO CALLS OUT UBER
The recent incident in which an autonomous Uber car struck and killed a pedestrian in Tempe, Arizona may be more of an indictment of Uber than of autonomous technology. John Krafcik, the head of Waymo, says he’s confident that Waymo’s autonomous cars would have detected and avoided that pedestrian. Speaking at the National Auto Dealers Association conference over this weekend Krafcik said, and I quote: “Based on our knowledge of the accident and our systems, I can say with some confidence that our technology would…have handled situations like that.” We here at Autoline Daily think that other companies developing autonomous technology, like GM’s Cruise Automation and Aurora, would also be able to say the same thing. We’ll wait for the National Transportation Safety Board to give its final analysis of what actually occurred, but at first blush it looks like this is more of a problem with Uber’s approach than it is with autonomous technology
BMW WON’T ATTEND DETROIT SHOW
Last month, after Mercedes announced it won’t attend next year’s Detroit auto show, we worried that more German automakers would follow suit. And now Automotive News reports that BMW is pulling out of the Detroit show. The company says it’s looking at alternative formats to showcase its new vehicles. But it’s not that surprising of a move. Over the last few years, Mazda, Porsche, Volvo and Jaguar Land Rover, have all skipped the show as well. But it’s clear automakers believe they’re better off holding special events to introduce new vehicles, instead of sharing the stage with their competitors during an auto show.
HYUNDAI’S UNION CHIEF CALLS EVs “EVIL”
While most automakers are embracing electric vehicles and have plans to significantly boost EV models, not everyone is happy about the change. In an interview with Reuters, the head of Hyundai’s union in South Korea said “Electric cars are disasters. They are evil. We are very nervous.” That’s because he’s concerned that the shift to electric cars will result in fewer jobs, since they don’t require engines and transmissions. He says, in a worst-case scenario, EVs could lead to 70% fewer jobs. Because of this, the union is studying ways to build cars in the future without reducing its workforce.
And speaking of electric cars, Daimler just introduced a new EV for the Chinese market. We’ll take a look at that, right after this.
DAIMLER REVEALS DENZA EV
Daimler and its Chinese partner BYD share a EV joint venture company, called Shenzhen DENZA New Energy Automotive and it just launched a new model. As its name implies, the DENZA 500 has a range of around 500-kilometers. It comes with a refreshed exterior that features, what the company calls “tiger eye” LED headlights and rippling LED taillights. The dash now sees a larger 9-inch touchscreen, which also supports DENZA’s smartphone app. The DENZA 500 is produced locally for the Chinese market and to help increase sales, it will also be added to select Mercedes-Benz dealers in the country.
NISSAN TO OFFER REFABRICATED BATTERIES
But one of the problems with most EVs is that they lose a ton of value by the time they hit the used car market because potential customers worry about having to replace an expensive battery pack. But Nissan hopes to change that by offering LEAF customers in Japan the option to exchange their old battery for a refabricated unit. Starting in May, it will initially offer 24 kWh batteries for 300,000 yen, which is about $2,850. While that is expensive, Nissan says a new pack of the same size is more than double that at 650,000 yen or about $6,200. Nissan plans to expand its lineup to include 30 and 40 kWh refabricated batteries.
NISSAN PARTNERS TO RECYCLE EV BATTERIES
And while this is one way to get more life out of used battery packs, as we said the other day no one is currently able to recycle EV batteries on a large scale and for a profit. But Nissan has set up a joint venture with Sumitomo Corporation, called the 4R Energy Corporation that is opening a new plant in Japan to focus on the reuse and recycling of lithium-ion batteries. The plant will also use the recycled batteries for large-scale storage systems and electric forklifts.
Wagons make up just a small part of the car market. And coming up next, Buick explains why it wants to be a player in that segment.
WHY BUICK JUMPED INTO WAGON SEGMENT
Once upon a time, station wagons were popular in the U.S. but now they’re just a niche part of the market. That’s why it was so intriguing to see Buick add a wagon to the Regal lineup. On last week’s Autoline After Hours, Doug Osterhoff, the Marketing Manager at Buick, explained why the company is entering the segment.
(The AAH preview is only available in the video version of today’s show.)
For more about the Buick Regal TourX, you can watch that entire show right now, on our website, Autoline.tv or you can find it on our YouTube channel.
But that’s it for today, thanks for watching and please join us again tomorrow.
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Comments (34)
March 26th, 2018 at 11:59 am
So many auto manufacturers abandoning the Detroit Auto Show my well kill off this venue.
And at the same time the manufacturers have succeeded in pissing off the public with this move, and lost who knows how many potential sales.
March 26th, 2018 at 12:01 pm
Meant to write ‘May well kill off this venue.’
March 26th, 2018 at 12:04 pm
Apple withdrew from shows in around 2009 because they saw more customers every day in their stores and wanted to hold special events. Successful for Apple, but sad for us fans who loved the shows and seeing friends.
Hyundai unions sure are shooting themselves in the foot. Won’t be long before all their manufacturing is outside Korea.
March 26th, 2018 at 12:06 pm
Is the Hyundai union guy even correct, in thinking EV’s would lead to 70% fewer auto jobs? It takes people to make batteries, electronic controls, and electric motor power trains. Also, engine building, and other manufacturing is becoming more highly automated, so the number of jobs are going down anyway.
March 26th, 2018 at 12:11 pm
The Regal wagon looks nice, but unfortunately, it has mandatory AWD in the U.S. I didn’t need 4WD when I spent winters in Indiana, and I sure as H don’t need it now that I never drive in snow and ice.
March 26th, 2018 at 12:13 pm
“…the union is studying how cars of the future might be built without slashing headcount…”
Improving labor productivity has been going on for 100+ years and is the only way the auto companies have been able to continue to pay such premium wages to their workforce. I don’t see this trend stopping and is one of the benefits/economics of EVs in that they are simpler in design, manufacture, and maintain.
March 26th, 2018 at 12:21 pm
Maybe Detroit needs to cede there traditional auto show timeframe to CES and claim, not the new year time but the traditional new model year car time, in September/October. I still find it odd that BMW would not show, after all they build a lot of SUV/CUV in their S.C. plant, which is the U.S. market’s preference (of late).
March 26th, 2018 at 12:41 pm
AWD is not just for snow. It is great in the rain when roads are really slippery. I bet Florida gets a lot of rain.
March 26th, 2018 at 12:42 pm
I like the shape of that Denza.
March 26th, 2018 at 12:42 pm
7 According to Autoweek, they are considering that.
http://autoweek.com/article/detroit-auto-show/detroit-auto-show-considers-move-october
March 26th, 2018 at 12:51 pm
8 I agree that AWD has some, small advantage in rain, but not nearly enough that I want the weight and complexity of the extra hardware. Why do Europeans have a choice of RWD BMW and Benz wagons, and FWD Opel Insignia wagons (same as TourX)? It rains, and even snows in Europe too.
Yes, I know the answer to my rhetorical question. It costs to certify a powertrain, and BMW, Benz, and Buick think a majority of wagon buyers would want AWD. It seems to me, though, that people who want 4WD buy trucks and SUV’s, not car-height wagons, and many of us who like real wagons want only two wheels driven.
March 26th, 2018 at 12:59 pm
So how many North American auto shows are losing the interest of automakers? Is Chicago, NY, & LA losing manufactures as well?
March 26th, 2018 at 1:01 pm
Not surprised at the BMW move. Detroit….who cares. Its another problem city. With all the other warm climate locations for auto shows, why would anybody other than the auto involved media want to go to Detroit. To me a location like Orlando Fl is the type of location that would attract auto buyers to look at the latest vehicles and future concepts. Its a destination with other things to offer. What does Detroit offer?
March 26th, 2018 at 1:09 pm
I think Wayno & John Krafcik are really going out on a limb by implying their technology would not have let the accident happen. Perhaps it wouldn’t but should a pedestrian be injured or worse in the future Waymo’s gonna have some explaining to do.
I don’t know what to think about MB and now BMW skipping Detroit. The show’s attendance is steady and wouldn’t a car show be their target audience? If I came to see the latest in 4K TVs and surface mount speakers am I really going to take a serious look at the difference between a S-class and a 7-series? I’m sure there’s no penalty in skipping a year or two, Porsche did in the 2000s.
March 26th, 2018 at 1:34 pm
13 The Detroit area has some great museums for out-of-towners, not least is the Henry Ford Museum. Still, as Chuck and others have said, the auto show should be at a time of better weather. In January, it’s a given that it will be cold, snowy, or both in Detroit.
March 26th, 2018 at 1:48 pm
Ahh marketing managers, they have to have an answer I guess for the Madness. The Buick Regal Tour X is what was available from Opel period. That is all he needed to say. It was developed for the European market where they like grossly elongated wagons that look painfully awkward. I hope the vehicle does well, we do need vehicles like this in the US market. But vehicles designed for this market. Being that there is no precedent for a vehicle like this right now in the US market, I question the legitimacy.
March 26th, 2018 at 2:06 pm
#11 – I don’t want a truck/SUV/CUV to obtain AWD in a vehicle. We are in SEM year round & I prefer having a car based AWD vehicle available so I can leave the tractor in the pole barn & not plow the driveway. We’ve had a Volvo V70R for 14 years that gets winter tires or summer tires depending on the season, & just replaced my wife’s Contour with a Fusion Sport AWD with all season tires. I understand your position since you escape the snow in the winter, however, I am happy that AWD is available on cars that are fun to drive.
#13 – Please read up to date news on Detroit & attempt to move your information to current situation. City is improving although it will take time & effort. Current mayor & city council have done a very good job working on improvements.
March 26th, 2018 at 2:09 pm
#16
I think the precedent for this type of wagon is the grossly successful Subaru line; now prying sales away could be problematic, maybe the segment can grow to at least support a fine wagon like the Tour X.
March 26th, 2018 at 2:10 pm
I keep thinking that the “soccer mom” image will catch up with SUV/CUV’s, as it did with minivans, and before that, big wagons, but so far it hasn’t.
16 They like “grossly elongated wagons” in Europe, because they are no-compromise vehicles. They handle, and get mpg like a sedan or coupe, but have much more utility.
March 26th, 2018 at 2:18 pm
For the Auto Shows, I think the reason is the return on the marketing budget for attending. What are the fees in Detroit?
For adding AWD..that is probably a shrewd marketing move for “coverage” without building a new model platform/badge.
And for the Uber fatality…be careful with the “crowing” by other competitors. Your day in court will follow and these statements by CEOs will come back to haunt you.
March 26th, 2018 at 2:25 pm
#11 I lived in the “snow belt” for 40 years, driving first RWD, and later FWD cars. With FWD and regular “all season” tires, I could go through snow, until it was deep enough that it dragged, and got packed up against the underside of the car. Yeah, you can accelerate better on slick stuff with AWD, but you can’t decelerate any quicker.
I don’t have a problem with companies offering AWD on cars, but it would be really nice to be able to get a 3 series, Buick, or Benz wagon without AWD, like in the rest of the world. Now, there is not even one RWD wagon sold in the U.S., and only VW and Volvo sell FWD wagons in the U.S.
March 26th, 2018 at 2:28 pm
15 and 17 I’ve been to the Henry Ford and it is a very nice museum. Beyond that Detroit isn’t a desirable place to visit. Except for city dwellers or people in the auto business, Detroit doesn’t appeal to people on vacation. I’ve been there many times. A resort area is the future for such a show. If a city setting is where they want to be there are better choices with better climate and locations for a show.
March 26th, 2018 at 2:32 pm
#18 Maybe Buick could take away some Subaru Outback sales if they sold their wagon without AWD. Well, probably not many. The Buick still has the advantage of being “cleaner” looking, without so much body cladding, and without the bulky looking roof rail things that most Outbacks seem to have. Anyway, I hope the TourX does well. It is a fresh addition to the U.S. market.
Also, the other Regal is nice, a liftback that looks good, like the 4 series Gran Coupe, and it is available with FWD.
March 26th, 2018 at 2:55 pm
If the GM AWD system is used, it is not automatic like Subaru, but selectable by a dial which allows 2 wheel or 4 wheel drive.
March 26th, 2018 at 3:25 pm
Don’t care one bit for the look of the Buick Regal wagon. The rear 1/3 of the vehicle and the rear hatch design are just awful looking. Why must they slope down the rear roofline so severely and remove usable storage space, just to obtain maybe an extra half a mile per gallon EPA rating. My dad had a 1970′s era Ford Torino station wagon that we all loved.
March 26th, 2018 at 7:58 pm
Auto shows in general are a bit of yesteryear as anyone who has access to the internet can get almost all the information concerning a new car except getting the chance to sit in the car and who would go to just a BMW or Mercedes event if there were no other cars at the show given that there may be just 1-2 new models which means BMW and Mercedes could be shooting themselves in the foot.
March 26th, 2018 at 8:03 pm
One has to wonder whether Buick had much choice with the Regal Wagon given that Opel had developed the vehicle and given that Cadillac couldn’t make people be excited about their CTS Sport Wagon despite having access to the 556 hp supercharged 6.2L V8 says there’s little one can do; although, if was possible.. Buick engineers could have tweaked the Regal Wagon to look a bit more like a CUV to attract buyers.
March 26th, 2018 at 9:09 pm
27 To me, the purpose of the Regal wagon, was to offer something different. There are already about 80 CUV’s in the U.S. market. Why would they want to make the Regal look like number 81? Of course, they eliminated me as a potential buyer, with the mandatory AWD.
March 26th, 2018 at 9:38 pm
I’ve attended the NAIAS for many years but won’t be returning for the next one. To many auto manufacturers have withdrawn. I’ll probably go to the Chicago Auto show at McCormick Place where they have far more display space.
March 26th, 2018 at 9:50 pm
I’ve been to NAIAS once, many years ago, and the NYC show in 2013, as part of a general “tourist” visit to the city. I don’t remember too much about Detroit, except that everyone was there. That was probably in the 1970′s. The disappointing thing about New York was that the exotics weren’t there. I expected them to be there, at least behind ropes.
March 26th, 2018 at 11:52 pm
Having the NAIAS in Orlando is not going to get more OEM’s to come. Some of you miss the point, it’s not an attendance issue since you have over half a million people coming to the Detroit show every year. Orlando has a poorly attended auto show which is one of many auto events in the central Florida area (February has the Rolex24, Daytona 500, followed by bike week, Mecum auction, etc.). Moving back to September so as not to compete with CES may be a good thing.
March 27th, 2018 at 1:04 am
Move the Detroit show to Florida during Spring beak would increase the size of the crowds and get a bunch of Canadian ‘snowbirds.’
March 27th, 2018 at 9:26 am
This Indiana ‘snowbird’ might go if it were in the Orlando area, and if all of the mfg’s showed up.
March 27th, 2018 at 2:25 pm
#31, you have the correct take. I hope the move to October, which not only means better weather but also is a less expensive time for display setup, revives the aspects of the show that the international press comes for.