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Runtime: 8:44
0:15 Rivian Gets $700 Million In Investments
0:45 Why GM/Rivian Partnership Makes Sense
1:30 Toyota Reveals New Hiace Van
2:30 Buick Drops the Cascada
3:10 GMC Refreshes the Acadia
4:02 GM Offers Canadian Workers Benefits
5:01 Dealers Blast Trump Over Tariffs
6:17 How Cadillac XT6 Differs from GM’s Other CUVs
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This is Autoline Daily reporting on the global automotive industry.
Hi I’m Sean McElroy. It’s February 18th, 2019. And now the news.
RIVIAN GETS $700 MILLION IN INVESTMENTS
Well you may already know this by now because the news was announced last Friday after we came out with Autoline Daily. Amazon and others are going to invest $700 million in Rivian. That’s a lot of money. Rivian got to where it is right now with an investment of $450 million, so imagine what it can do with a much bigger pile of cash. And we’re still waiting to see if GM is going to invest in the electric startup.
WHY GM/RIVIAN PARTNERSHIP MAKES SENSE
A lot of people have wondered why GM would make this investment. Here’s our Autoline Insight. Chevrolet has been massively unsuccessful trying to sell hybrid or electric cars. As good as the Volt and Bolt are, they’ve been sales flops. And Chevrolet truck owners couldn’t give a rip about electric pickups. So if GM does invest in Rivian, we believe Rivian could get access to GM’s parts bin. That would give GM more manufacturing scale with its EV skateboard and the parts and components specific to EVs. Remember, GM promised its EVs would be profitable in a few years and this could help them achieve that.
TOYOTA REVEALS NEW HIACE VAN
Toyota introduced a new version of its Hiace van which is well known in markets around the world. Two body types are available, a standard roof and a high roof. There are different seating configurations, with the capacity to carry up to 17 passengers. A cargo version is available but the van is mostly designed for people. It’s powered by either a 2.8L diesel or a 3.5L gasoline engine. It will initially launch in the Philippines, and then roll out to other markets afterwards. Interestingly, Toyota will continue selling the current model in Japan as is, due to market differences.
BUICK DROPS THE CASCADA
Soon the only convertibles you can buy from General Motors will be the Chevrolet Corvette and Camaro. Buick is dropping the Cascada and no one should be surprised. Opel, which is now part of Peugeot, killed off its version of the car late last year. Since it went on sale in the U.S. in 2016 only 17,000 Cascada’s were sold. Production of the LaCrosse is also scheduled to end next month, so that would leave the Regal as the only Buick passenger car currently planned for 2020. But the Regal is also made by Opel, so it’s only a matter of time before it goes away.
GMC REFRESHES THE ACADIA
GMC is updating the Acadia for the 2020 model year. As you can see, it’s bringing the styling more in line with the all-new Sierra pickup truck. Note the C-shaped lighting signature and extensions at the lower corners of the grille. A new AT4 trim is also available with a more off-road inspired design. While a 2.5L 4-cylinder and 3.6L V6 engine are still offered, a turbocharged 2.0L is now standard on SLT and Denali models. GMC estimates horsepower at 230 and torque at nearly 260 lb-ft. A 9-speed automatic transmission replaces a 6-speed as standard for all engines. The 2020 GMC Acadia goes on sale this fall.
GM OFFERS CANADIAN WORKERS BENEFITS
GM is going to close its assembly plant in Oshawa, Canada and while that sparked big protests, the workers are not exactly being left out in the cold. They are going to get lump sum payouts of $50-$60,000 per person, a voucher to buy a new car, extended benefits, free classes at local community colleges to get training for a new job and they get a full pension. Understandably, those workers are furious that GM is closing their plant and they believe they’re losing their jobs because GM is expanding production in Mexico. The Canadian union Unifor is calling for a boycott of all GM vehicles made in Mexico, pointing out that if the VIN starts with the number 3, that vehicle is made in Mexico. GM has a long history in Mexico. It began selling cars there in 1921 and began manufacturing vehicles there in 1937.
DEALERS BLAST TRUMP OVER TARIFFS
The Commerce Department sent its report to President Trump last night about its investigation into whether imported vehicles pose a national security threat and if tariffs should be slapped on imported cars. The report isn’t public yet, but that didn’t stop car dealers from blasting it. The American International Automobile Dealers Association says tariffs will cost jobs and lead to price increases. The Center for Automotive Research released a report saying a 25% import tariff will cost nearly 367,000 jobs, boost car prices by an average of $2,700 and reduce new car sales by 1.3 million units. Auto dealers by and large support the President but that won’t be the case if he follows through on the tariffs. President Trump has 90 days to act on the recommendations of the report. Here’s our Autoline Insight. We think he’s going to slap on those tariffs.
HOW CADILLAC XT6 DIFFERS FROM GM’S OTHER CUVs
There’s a perception that the all-new Cadillac XT6 is just a rebadged version of the Buick Enclave or Chevrolet Traverse. But it’s actually quite different. On last week’s Autoline After Hours, we were joined by John Plonka, the Chief Engineer of the XT6 and he explained the different changes that they made to the XT6.
(The AAH preview is only available in the video version of today’s show.)
For a deeper dive into the all-new XT6, you can watch that entire discussion 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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John McElroy is an influential thought leader in the automotive industry. He is a journalist, lecturer, commentator and entrepreneur. He created “Autoline Daily,” the first industry webcast of industry news and analysis.