This is Autoline Daily reporting on the global automotive industry.
MORE JOB CUTS COULD BE COMING
A downturn in global car sales and automakers spending billions on EVs and autonomous technology is costing auto workers their jobs. Just this week Ford said it’s going to cut 7,000 salaried workers and Bloomberg reports that in the last 6-months there’s been at least 38,000 job cuts around the world. And it could get worse. An analyst for Morgan Stanley estimates Ford would need to eliminate another 23,000 salaried jobs if its revenue went down by 5% and it did nothing else to cut costs. And others warn higher tariffs could put hundreds of thousands of jobs at risk. All this uncertainty has got to make it tough on everyone.
AUDI TO REPLACE TT WITH AN EV
And speaking of cuts, Audi says it’s going to stop making the TT and will replace it in a few years with a new electric car. The little 2-door coupe has been a part of the automaker’s lineup since 1998. And Audi’s focus on rolling out 20 BEVs by 2025 will have other impacts on its lineup as well. Bloomberg reports the next-generation of its A8 sedan, which is scheduled to come out around 2025, could go emissions-free and the R8 could go away completely.
CONSUMER REPORTS BLASTS AUTOPILOT UPDATE
A little over a month ago, Tesla introduced an update for its Navigate on Autopilot system that allows the car to automatically make lane changes without any driver input. Tesla says it helps improve safety and makes the driving experience more seamless. But Consumer Reports just tested a Model 3 with the update and says it doesn’t work very well and is less safe than a human driver. It says it cut off drivers without leaving enough space and made passes that violated state laws. Consumer Reports head of testing says “It’s incredibly nearsighted. It doesn’t appear to react to brake lights or turn signals, it can’t anticipate what other drivers will do, and as a result, you constantly have to be one step ahead of it.” Ultimately, Consumer Reports says the feature doesn’t add any meaningful assistance to drivers.
GM’S SELF-DRIVING FLEET FACES PUSHBACK
General Motors is also facing some pushback with its self-driving car plans. The automaker asked regulators to waive some safety standards to help it deploy its fleet of autonomous, ride-hailing vehicles without a steering wheel or pedals. NHTSA opened up the request for public comments and its revealed some of that feedback. Several groups, including car dealers and insurers, say more data is needed, want more safety provisions, or think the petitions should be denied outright. But the automaker did receive some support with proponents saying the technology can help drastically cut accidents. GM has said it wants to launch its self-driving fleet by the end of the year but it looks like it needs to do more to win over the public before it can do that.
TARIFFS DRIVE UP AUTO PARTS PRICES
Your next trip to the mechanic will likely put a bigger dent in your wallet. Bloomberg reports that the recent tariffs the Trump Administration imposed on Chinese goods is causing the cost of auto parts to go up. Advance Auto Parts and AutoZone both posted earnings and profits recently that beat analyst expectations because the retailers passed on the cost of the tariffs to its customers. So, until the trade dispute is settled, expect to see higher prices for your auto parts.
TURN YOUR CAR INTO A BILLBOARD
Osram is an automotive lighting supplier company, and one of the advanced projects it’s working on is putting an array of LED pixels on the outside of car doors that become video display screens. The screens can be used to show when a car is in autonomous mode, or send out traffic alerts, or be used for display advertising. There are billions spent on digital advertising so why not on cars? In fact, the ads could be tailored to specific areas where the car is driving. Autonomous cars need expensive hardware and software so this could pay for it all. In fact, it could even be used by owners of regular cars, because the affordability is becoming a big issue.
KIA TEASES INTERIOR OF NEW SMALL CROSSOVER
Remember Kia’s all-new small crossover it teased recently? Well, now here’s a look at the interior. It features a layered, floating dash design with a large 10 and a quarter inch display screen mounted high in the driver’s line of sight. A number of interior lighting options will also be available. The yet-to-be-named model will start rolling out by the end of the year.
Don’t forget to catch Autoline After Hours this afternoon. Our special guest is Carl Widmann, the head of Ford’s performance division, who will also be bringing a Mustang GT350 to the studio with him. So this is your chance to learn about Ford’s performance vehicles. That’s this Thursday at 3PM eastern time on our website, Autoline.tv.
But that wraps up today’s show, thanks for watching and please join us again tomorrow.
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Comments (41)
May 23rd, 2019 at 12:21 pm
I am not buying the AV and EV craze is causing job losses at Ford. Maybe its because they have crap to offer other than the F-series and Mustang. They plan to cut the Fusion hybrid which AD said is outselling the Prius. Then yesterday they show us a delivery robot Ford is developing. Just sounds like Ford wants to become the next GE and be involved in many other things than automotive.
May 23rd, 2019 at 12:23 pm
Turn your car door into a billboard?, bad idea. This would just create another distraction. Even those third light blinkers may seem like a safety feature, but if all vehicles had them and traffic was heavy, what a cacophony of blinking distraction (when multiple cars braked) that you would soon loose any help a blinking light might provide. JMO
May 23rd, 2019 at 12:30 pm
If you build it, they will come (EV’s); apparently not. It seems saturation, in at least the U.S., has either arrived or is nearing. Cautious advancement of EV’s should prevail (for healthy car companies to proceed).
May 23rd, 2019 at 12:33 pm
Osram needs to send a rep to NYC as the taxi cabs there have been running around with LED screens on the roof for years. Doesn’t seem like moving it to the door requires an advance projects team.
GMs AV with no steering wheel or pedals seems a bit scary. Hopefully a red panic button is at least provided to bring everything to a stop. They should install the fake driver like the Jonny Taxi in the original movie “Total Recall”. Then you at least get the creepy animatronic conversation.
May 23rd, 2019 at 12:36 pm
2 agreed. I very much dread an onslaught of advertisements on the road. Remember the day when buses had a “regular” paint job?
May 23rd, 2019 at 12:38 pm
1 Ford does not have any serious EVs, never had. The Ford Focus EV had a range of.. 75 miles or so. They don’t even sell it now, for obvious reasons. It is AV and Mobility that every fool is wasting billions on, they bought the hype, but the consumer (and now Consumer Reports too) knows better.
Humpty Dumpty Hackett making Ford into another GE is a truly scary thought. The fools in the Ford Family who chose him, Bill Ford above all, who own millions of voting shares will really suffer.
2 Agree, terrible idea, even if they really pay you a lot for it. If one has any respect for himself and his car.
3 These are growing pains. Gas vehicles faced many of the same hurdles in the 1900s (no gas stations, no roads) and it took decades. But it’s a world market and all governments who are not impoverished like India and cannot afford them, are pushing for EVs. Europe in particular is switching from Diesels to EVs big time, and of course the biggest of all, China.
May 23rd, 2019 at 12:42 pm
#2, Agreed.
The only way I see car doors as billboards working is during the rare exception that a car is parallel parked stationary at a curb in an urban setting.
I can’t see that thing being legal to have turned on while driving. Heck, in most (if not all) states it’s not even legal to have neon lights illuminated under a car while driving (think back to the heyday of the import tuner scene, circa the original Fast & Furious film), so there’s no way this concept would fly.
May 23rd, 2019 at 1:03 pm
I am sure the stealerships had the public interest in mind when they gave their feedback.
May 23rd, 2019 at 1:30 pm
Everyone ones wants a reliable, safe and fun to drive vehicle, but all this BS being incorporated into new vehicles is making the average new vehicle unaffordable and extremely costly to insure and maintain. I agree with most of what my fellow Autoline viewers say. Lambo2015 and ChuckGrenci are making very good points about the automotive industry. EV technology cannot become the mandate for all vehicles in the USA. Because you can do it does not mean you should do it! Sorry, Nike!
EV’s and Car Sharing may be well suited for urban lifestyles. AV vehicles which GM is promoting without human controls is simply ludicrous!
I can see a growing number of consumers like myself hanging on to our older vehicles and adding newer tech features from the aftermarket industry, especially Restro Mods. I want to control my vehicle, not an AI that can be hacked and possibly kill me or my loved ones. Hasn’t anyone seen that Will Smith movie “I, Robot”!
That AI was out to kill him with what seemed to be an unlimited number of assistance from all types of electronic devices. GM has lost me as a future customer and Ford has been poorly run since Alan Mulally left! The new Ford Ranger could have been used as the basis for the New Ford Bronco. Enclose the rear and add seats and be done with it, But NO! Ford spent millions of dollars on a whole new vehicle. This is stupidity in my opinion.
The Asian OEM’s are laying in waiting for the domestic Big Three to weaken to a point for takeover or bankruptcy. The Federal Government should not bail them out again.
I hope FIAT does not screw up or sell off Jeep! Jeep is the only brand worth a damn in their US portfolio.
May 23rd, 2019 at 1:44 pm
Elon Musk needs to focus more attention on the build quality, battery storage capacity and recharging network for Tesla vehicles. All this other stuff he has been cramming into his vehicles are all for show. Once again, consumers want a reliable, fun and worry-free driving experience. If Elon concentrates his efforts on these topics Tesla will survive the current onslaught of negativity and destructive financial opinions, IMHO.
May 23rd, 2019 at 2:10 pm
An EV with 150 miles of range would work for about 90% of US commuters who could charge the car at home. How much could Tesla sell a 150 mile Model 3, without the glass roof, and a few other useless features? I’d think such a car could be very appealing to a lot of commuters. There are tens of millions of American multi-car families with houses in the ‘burbs, with two car attached garages. A 150 mile EV would work well as one of those cars for a lot of them. I’d think a test drive in a Model 3, even a basic one, would sell a lot of cars, if the price were, say, $30K for a basic version.
May 23rd, 2019 at 2:12 pm
I hope I’m wrong ,but I see this forced switch to EVs bankrupting many companies as they try to deal with the costs involved with a tech they really aren’t that great with yet. That on top of a skeptical buying public and overpriced offerings at this time spells a recipe for disaster. They lose money on nearly if not every car they make as stated on this very site. Chevy sold a overpriced Volt and Bolt to a public that wasn’t interested. Mitsu made a EV road going golf cart in the Mi-EV. That hardly anyone bought. The 1st generation Leaf was a colossal flop. Not sure how the new is doing ,but at least it looks much better. Outside of Tesla no one has really made any significant progress . My worry for Tesla is once the early adopters all get their cars then what? Will the sales crater? I guess time will tell. But to say companies like Audi will have 20 different EV models by 20 25 or so is very ambitious and hopefully not extending past their grasp. All the others are in the same boat.
May 23rd, 2019 at 2:19 pm
11 if these commuters don’t need the breathtaking performance or the elegant styling of the Tesla, they don’t have to wait for it to offer a 150 mile version, they can buy a Nissan Leaf with 150 miles, and if they need more range, the Bolt has 200+ (238?)
May 23rd, 2019 at 2:23 pm
12 Tesla has not even begun selling its “CUV”, the “Y”, (which looks like a taller model 3), in a market that hates cars and loves crossovers.
In addition, after the pioneers and the early adopters and the risk-takers, and as the infrastructure expands every day (new charging stations etc), there will be the millions of ordinary commuters and car buyers who could benefit.
And all this is in a dirt-cheap gas price environment in the US. In Europe, the EV is a far more attractive option, in 5 days I will be there and stay for 3 months, and have to pay $6 a gallon for diesel fuel, and that’t the cheaper one, gas is $8-$10 a gallon! And the streets are still congested with traffic, amazingly, despite the lousy economy there.
May 23rd, 2019 at 2:33 pm
1 Ford has some OK products, other than Mustang and F series. Both the Edge and Expedition did reasonably well in CR’s tests, and in some enthusiast magazine tests, and the Escape was mid-pack in CR’s tests. Also, the soon-to-be-extinct Fusion is still a decent car, even after all these years.
They seem to be very short sighted in dropping all of the cars. The Taurus sucked, and needed to go, and the Fiesta had less room than most competitors, but it seems to me that they should have sold the new Focus and Fusion/Mondeo, instead of dropping both, and almost completely turning those markets over to the Asians. Maybe Ford’s dropping Fusion will help Malibu sales a little.
May 23rd, 2019 at 2:40 pm
https://insideevs.com/news/351085/tesla-model-3-q2-delivery-potential-leaked/?fbclid=IwAR17akf-Hz8rOXUbF0Ouhzde4IPKkNXVNLypKgiJWtpFf2rIwwRoBrKILeE
May 23rd, 2019 at 2:42 pm
from 16: Allegedly leaked memo from Musk yesterday
“From: Elon Musk
Date: Wed 5/22/2019 10:45 PM
To: Everybody
As of yesterday, we had over 50,000 net new orders for this quarter. Based on current trends, we have a good chance of exceeding the record 90,700 deliveries of Q4 last year and making this the highest deliveries/sales quarter in Tesla history!
In order to achieve this, we need sustained output of 1,000 Model 3’s per day. Almost all parts of the Model 3 production system have exceeded 1000 units on multiple days (congratulations!!) and we’ve averaged about 900/day this week, so we’re only about 10% away from 7000/week.
If we rally hard, we can do it!
Thanks for your great work,
Elon”
May 23rd, 2019 at 2:44 pm
This past weekend, I rented a Ford Fusion Hybrid. It was the first hybrid i ever drove. I was very impressed with the car, to the point of looking to potentially buying one. Too bad they are being phased out.
May 23rd, 2019 at 2:44 pm
13 The performance is one thing that could help sell Model 3s to EV skeptics, if they experienced it.
A new Leaf still costs $30K, and a Bolt $37K, both pricey for commuter cars with good, but by no means breathtaking performance. The Bolt, with a 6.8 second 0-60 time is significantly quicker than its closest ICE competition, but is also a lot pricier.
May 23rd, 2019 at 2:53 pm
18 Check out the Camry and Accord hybrids too. Both are quicker than the Fusion, and use less gas, though I suspect better deals will be available for the Fusion, since it will soon be an “orphan.” Also, the Malibu hybrid is worth checking out. In CR’s tests, it gets better highway mpg than the Fusion, but slightly worse city mpg.
Anyway, there are a lot of good cars available in that class. If only there were a Camry or Accord hybrid wagon.
May 23rd, 2019 at 2:59 pm
16, 17 I just also heard this from the daily AN PM video
https://www.autonews.com/video/autonews-now-gm-av-project-questioned-safety-insurance-groups?utm_source=antv-autonews-now&utm_medium=email&utm_campaign=20190523&utm_content=hero-image
May 23rd, 2019 at 3:01 pm
16,17 I wonder how many US, how many China, and how many ROTW.
May 23rd, 2019 at 3:09 pm
22 In China, they will soon make the Model 3 in huge quantities in the new Tesla factory. A few 3 may be imported now but are probably too expensive, also due to the tariffs. Many more go to Europe, if I had to guess. ROTW is sound asleep with few exceptions.
May 23rd, 2019 at 3:15 pm
23 this supports my speculation abt Europe sales
https://www.ibtimes.com/tesla-gets-massive-model-3-orders-sales-western-europe-surge-2788778
May 23rd, 2019 at 3:44 pm
I predict EV’s will never gain traction within the decade because industry is more focused on advancement and beating the competitor than focusing on delivering an affordable, basic vehicle which the masses can afford. Closing auto plants, moving abroad may reduce product cost but also removed those who had well paying jobs from the market. The average us wage is about $31K. Is the move to phase out affordable family ICE cars to pricey SUV’s or to any EV the smart thing to do? I think not.
May 23rd, 2019 at 3:53 pm
Unless someone develops a new type of battery that changes the two big obstacles for EVs Price and Range. I’m betting EVs will peak @ 10% of overall sales in the US. That’s still over a million a year but I really don’t see them selling any better than that. Or unless gas reaches EU prices that would change the percentage.
May 23rd, 2019 at 4:00 pm
If the UAW hierarchy ever overcomes their corruption and becomes a true representation of their workers, I think they should have a measurable voice into the automotive future. A touch of reality would be refreshing and realistic.
All those auto exect’s sitting in their ivory tower making hundreds and maybe a thousand times the workers wage has gained what? Not much of anything! It is now in everyone’s interest to pay workers their worth rather than a bunch of A$$holes who only play politics.
May 23rd, 2019 at 4:14 pm
Lambo, I only can listen to those on lower levels about what they have ahead of them. I don’t see EV’s gaining more than 3% over the present. Innovations happen so rapidly that no one is wise enough to focus on what is available now and then to focus on how that could be profitably utilized. I find it sad that the U.S makers only focus on present profits, stock investor returns and hand outs for EV’s.
May 23rd, 2019 at 5:15 pm
26,28 It’s the price, and for some people, the range, but “mainstream” dealers don’t try to sell EVs, rather, the opposite. Go to an average Chevy dealer and try to test drive a Bolt. They’ll try to talk you out of it, the car isn’t charged, or something. Then, with Tesla, you can neither buy nor test drive a car many places. Even in Florida, where there are no restrictions that I know of, there are only about 8-10 stores that are “full service,” and a few boutiques in malls. Then, there’s Texas.
May 24th, 2019 at 8:25 am
https://europe.autonews.com/automakers/opel-sees-electric-corsa-key-ev-entry?utm_source=daily&utm_medium=email&utm_campaign=20190524&utm_content=hero-image
The CORSA was a popular subcompact, this should not be too expensive even in Europe. AN ideal commuter EV, easy to Parallel park
May 24th, 2019 at 8:42 am
https://europe.autonews.com/automakers/tesla-struggling-keep-norway-success?utm_source=daily&utm_medium=email&utm_campaign=20190524&utm_content=article5-image
And a bone to the transient ‘hit and run’ Tesla haters here, although I’m not so sure they read my links, or are encumbered by facts or reason. A victim of its huge success in Norway?
May 24th, 2019 at 8:57 am
28 & 29 What it really comes down to for me and many other consumers is, I’m not going to pay more money (significantly more in most cases) for a car or even SUV that isn’t capable of doing everything an ICE vehicle can do. Most manufacturers with the exception of Tesla, thought an EV should be an economy car. So first big problem is they are asking 40K for a vehicle that’s ICE competition is less than half that amount. Tesla was smart in offering something more luxurious. Its very difficult to justify paying more money for a vehicle that has half the range and a fraction of refueling locations and even if the charging stations were abundant, I would not be okay with stopping every 3 hours for 20 to 30 minutes. On top of all that, knowing that in 10 to 12 years the vehicle will need a very expensive battery or face significant depreciation. Maybe battery prices will be down but that’s still an unknown. In 5 years someone could develop the next best battery and everything we use today will be old technology like trying to sell an EV that uses 12V lead acid batteries. Just a lot of unknowns making an EV a 40K gamble.
Yeah we all know that Tesla is the exception when it comes to EVs and acceleration can be amazing but that isn’t enough.
The thing about a gas car is with proper maintenance they can last 40 to 50 years and even then, if an engine is needed it can be replaced for a couple grand. I have no doubt that EVs are here to stay I just not convinced they will be as big as some predict. Until they are on par in price, range, longevity and most importantly not be some 40K tiny econobox.
May 24th, 2019 at 9:02 am
30 I mentioned on here a long time ago that automakers should develop a vehicle that can be offered in gas and EV and so many people were like cant be done. Glad to see Opel is doing it as this will allow them to spread the tooling costs out over hopefully a larger volume than if it were strictly an EV. That should help keep the EV costs down. Plus its a decent looking car even though its still in the compact segment.
May 24th, 2019 at 9:57 am
Tried to watch AAH yesterday evening but the WHOLE show, not just the first 30 mins, were with that white haired guest in a suit from Ford, so O could not watch even one minute of it.
May 24th, 2019 at 10:00 am
28 “… I don’t see ICE cars gaining more than 3% over the present. Innovations happen so rapidly that no one is wise enough to focus on what is available now and then to focus on how that could be profitably utilized. I find it sad that the U.S makers only focus on present profits, stock investor returns and hand outs for EV’s.”
Right, it will be a cold day in hell when the Horse and Buggy will ever be replaced by ICEs. ICEs need infrasrtructure, there are very very few gas stations in the year of our Lord 1909. Whadda you gonna do, carry your own gas with you cross country?
May 24th, 2019 at 10:33 am
Just checked gas prices, I have planned to have the 21+ gallon tank of my E320 Bluetec virtually empty by Monday,
and to my great delight, Diesel is almost 20C cheaper than gas!
REGULAR is $2.99 at my neighborhood Kroger station, and Diesel is $2.81 (!!!)
AND because I get both a $0.25 and a $.40 discounts (Kroger Card and 408 points at $.10 per 100 pts discount), I will get it $0.65 cheaper, or a dirt-cheap $2.16!
May 24th, 2019 at 10:51 am
33 There are, and have been EV versions of cars designed for ICE, like the eGolf. That one apparently drove well, because it made C and D’s “10 best” list one year, but the inability to package batteries well resulted in very limited range. They seemed to do better with battery packaging for the Corsa, but the range mentioned is not a lot, given the very high numbers the Euro ratings return.
May 24th, 2019 at 11:04 am
37 That’s because like so many times before. Automakers want to be the first to provide a new technology and rather than do it right like Tesla did and start with a fresh sheet of paper they try and retrofit an existing program. Which renders mediocre results. They might get the job done but its not their best effort. Sadly that first offering can ruin it before it takes hold.. The Pontiac Fiero is a perfect example. GM wanted an all plastic body paneled mid engine sports car. They threw together a car with parts from the GM parts bin and 4 years later after they developed an actual suspension specifically for the car and was going to offer a truly good powertrain it was killed from the half a$$ job they started with. Seen it many times over since then.
May 24th, 2019 at 11:12 am
38 Cont- You know with the new powertrains available today GM should bring back a Chevy Fiero. Another mid-engine fun to drive 2 seater that would be a step down from the Corvette. They killed the solstice and that was still front engine anyway. Could be a nice niche no one is in.
May 24th, 2019 at 11:20 am
36 It’s strange how “regional” gas vs diesel prices are. In central Indiana, diesel is 20 cents more than regular gas. About half of the difference is state tax, but that doesn’t explain the rest of the difference.
May 24th, 2019 at 11:53 am
40 Here too most of the time gas is cheaper than diesel, but this is explained because of Mem Day travel etc, usually at this time gas prices go much higher while diesels don’t see anything like that increase in demand. If anything, many truck drivers take the day off or the whole weekend and use their gas cars instead.