This is Autoline Daily reporting on all aspects of the global automotive industry.
STRIKE EFFECTS CONTINUE TO TRICKLE DOWN
The UAW and GM continue to negotiate a new collective bargaining agreement but the shutdown is starting to have more of an impact on the automaker. Reuters reports that the company is temporarily laying off over 400 workers at its Ramos Arizpe plant in Mexico due to the strike. This is in addition to temporary layoffs of 6,000 workers at a separate plant in Mexico a week ago. But one of GM’s most hotly anticipated models is also being impacted by the strike. The Detroit Free Press reports that the new mid-engine Corvette will be delayed. It was scheduled to start production in December but that likely won’t happen because the plant where it’s built still has to fulfill orders for the current C7 Corvette, then the facility needs to be retooled to build the new model. That retooling was scheduled to happen this week and next but won’t happen because of the strike. So that means you’ll have to wait a bit longer before you can get your hands on a C8.
NISSAN NAMES NEW CEO & COO
And now over to Japan, where Nissan just appointed its new leader. The automaker promoted Senior Vice President Makoto Uchida to CEO. It will also appoint Mitsubishi’s Chief Operating Officer, Ashwani Gupta, as its COO. A formal announcement is expected later today. Nissan was looking for a new CEO after it fired Hiroto Saikawa last month after it was discovered that he was paid nearly a million dollars more than he was entitled to.
TOYOTA REVEALS NEW LUXURIOUS VAN
In other Japanese news, Toyota is launching a new van, or what it calls a full-size wagon at the Tokyo auto show. The GranAce features a bold grille design and either three or four rows of seating for 6 or 8 passengers. Under the hood is a 2.8L diesel engine mated to a 6-speed automatic transmission. The interior feels very luxurious with light leather seats, dark wood sprinkled throughout and aluminum-like accents. The GranAce will go on sale in Japan before the end of the year.
NEW RAM ECODIESEL FUEL ECONOMY FIGURES
More news about FCA and its diesels today, but nothing scandalous here. Ram released the fuel economy figures for the new 1500 EcoDiesel. A two-wheel drive example is rated at 22 miles-to-the-gallon in the city, 32 on the freeway and 26 combined. Four-wheel drive knocks that down to 21 city, 29 highway and 24 MPG combined. That basically puts it right behind the Silverado diesel and just ahead of the F-150 diesel. The Ram EcoDiesel is available now with a starting price of about $38,500.
AUDI & PORSCHE COULD SHARE EV PLATFORM
Due to expensive battery packs, most electric vehicles are still a bit pricey, but as manufacturing scale increases, prices will come down. And Bloomberg reports that Audi and Porsche are in talks with other automakers to share their electric vehicle platform, called Premium Platform Electric or PPE for short. While the head of development for the platform says, “there’s definitely interest” he declined to say who was interested, but that it would help the Group spread its development costs. The first vehicles to stem from PPE are expected to come in 2021.
LAST BUICK CASCADA ROLLS OFF
Another convertible is biting the dust. The last Buick Cascada just rolled off the assembly line. It was based on a shared platform with Opel, which GM sold to PSA in 2017, and built in an Opel plant, so it was no real surprise that the model was going away.
FIRST FORD PUMA ROLLS OFF
But when one vehicle dies, there’s another to take its place. And Ford has started production of the new Puma. It invested 200 million euro in its Romanian plant to build the model, which features a 48-volt mild-hybrid powertrain. That plant, which also makes the EcoSport and Ford’s 1.0L 3-cylinder gas engine now employs roughly 6,000 people. The Puma is one of eight new electrified models the automaker will introduce in Europe this year.
HARLEY LIVEWIRE NOT HAVING DESIRED EFFECT
Harley Davidson is struggling to attract younger buyers to the brand. So, it recently introduced an all-electric motorcycle called the LiveWire, in hopes that it will attract a younger demographic. But Reuters reports that’s not the case. It spoke to 40 Harley dealers in the U.S. and found that most orders are coming from existing and older riders. Part of that is due to the price, the LiveWire starts at nearly $30,000 and the company isn’t offering incentives. A traditional entry level Harley starts at about $7,000. Another issue is competition from other companies that sell less expensive electric motorcycles. The LiveWire is just starting to hit dealers now. But Harley needs to figure something out. Sales have declined for the last four years and its stock price is down 42% over the last five years.
But that wraps up today’s report, thanks for watching and we’ll see you again tomorrow.
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Comments (39)
October 8th, 2019 at 12:02 pm
A. The “Buick” Opel clone Lemona (or whatever) will not be missed.
B. Brussels- the EU should pay attention to Ford, where it produces the Puma, in dirt-cheap wage Romania. I bet when Ford leaves the UK because of Brexit, the fools in Brussels who salivate believing that Ford (and any other non-EU makers) will take their plants from the UK to the prosperous EU members like France, Italy, or Germany, will be sorely disappointed.
C. C8 delays will make this even more desirable. I can see dealers charging a multiple of its price when eventually it gets sold.
October 8th, 2019 at 12:07 pm
Yes, Harley needs to figure something out. And quickly! The price seems awfully high, comparatively, considering that the battery, (usually the most expensive part of an electric vehicle by far), must be quite small compared to an electric car.
October 8th, 2019 at 12:19 pm
C8′s can be had at MSRP at quite of few dealers; now for the guys that are just buying for bragging rights and want the first ones out then maybe there will be some price gouging. As it stands now, no one is getting one quick.
The new Harley Livewire is a easy fix; charge a (lot) more reasonable price. For crying out loud some car companies are producing BEV (at at least break even prices) for less. A motorcycle is just not that more complicated (as in it is actually a lot less complicated).
Toyota’s new van is, in a word, fugly; It seems that if Toyota doesn’t steal someone else’s design or use their California studio they just produce ‘logs’ on wheels.
October 8th, 2019 at 12:21 pm
the Toyota van is not for US consumption, but strictly for the Japanese market, where all other cars look like that, boxy narrow and tall, regardless of their size.
October 8th, 2019 at 12:23 pm
Just this morning I passed a new Buick Regal. As soon as I saw the Regal badge, a disappointed/disgusted feeling came over me.
I really liked the post bailout Buick Regal (2008-2017). It had athletic, chiseled styling. The new Buick Regal looks more like a late 90s Buick. I know they both are still Opel designs, but wow!
October 8th, 2019 at 12:38 pm
I believe more important than the C8 delay for GM is that dealers are not getting repair parts for customer vehicles. Some customers are sore about having to wait for their warranty repairs because of the strike. Not a good way to retain customers in the long term.
October 8th, 2019 at 12:39 pm
5 I must admit that the very first time I saw a Tesla S, barely saw it as I was driving the other way, I thought it was some Buick. Of course a good look would never reach that conclusion.
October 8th, 2019 at 12:39 pm
Just because someone who has never owned an Opel won’t miss them doesn’t mean that previous owners won’t. Also, Ford producing in low cost locations is a sign of intelligence. Even the EU couldn’t expect anything else.
October 8th, 2019 at 12:39 pm
6 they can use aftermarket parts, which are every bit as good and much cheaper, normally.
October 8th, 2019 at 12:44 pm
8 geez you speak about POS Opels as if they are quality cars. Give me a break. Every buyer likes what they buy and will miss it as if they lost a family member, I get it. I was speaking OBJECTIVELY.
October 8th, 2019 at 12:46 pm
8 Ford producing at low cost s–tholes is not always a sign of intelligence. Like their agreement with the crooks of Mahindra, sure it is not.
October 8th, 2019 at 12:54 pm
The live wire is going to be struggle no matter what. Electric cars are a small market, bikes are way less. No add in it’s a 30 thousand dollar Harley that you can’t make obnoxiously loud with a 100 mile range and now it’s an even smaller market. But you have to start somewhere I suppose.
October 8th, 2019 at 12:57 pm
3 The price, twice as much as a Zero with similar performance and range, is a problem with the LiveWire, but demographics are a very serious near- and long-term problem for Harley-Davidson in general. Harley’s “baby boomer” clientele are aging out of riding, and those who still ride are not buying so many new bikes. Then, the younger people who want a Harley have all of these mint condition used ones to choose from. Motorcycle sales in the US, in general, have been on a downward slide for years, which doesn’t help any manufacturer.
October 8th, 2019 at 1:00 pm
11 Companies must get decent quality from factories in Eastern Europe. Porsche Cayenne and Audi Q7 are built in Slovakia, and seem to have good build quality.
October 8th, 2019 at 1:19 pm
14 This may be true of the Chech Republic and Slovakia, because the former Chechoslovakia, which, before it became a nation, was part of the Austro-Hungarian empire, had a high level of education and industrialization and infrastructure. The SKODA plants were among the best in Europe and were renowned for making all kinds of military vehicles and weapons, long before VW took over.
Romania is a different story. It currently makes the cheapest versions of Renaults, really affordable sedans and a very successful, affordable SUV, under the “Dacia” (=ROmania) brand. Their quality is very poor.
October 8th, 2019 at 1:36 pm
Now VW will be making the Passat in Turkey, and yesterday there was a story that the Turkish PM told the Govt there to switch from the Audis they used to Passats. Should save them a ton of cash, and the diff is not that huge.
October 8th, 2019 at 1:39 pm
@Larry – I think it’s a stretch to call Opels (or their Buick counterparts) POSs, if you’re talking about modern versions.
October 8th, 2019 at 1:41 pm
https://www.thetruthaboutcars.com/2019/10/rare-rides-vintage-england-via-the-1957-austin-cambridge/#more-1686130
My uncle Alex had a more modern version of this car, with little fins in the back. He bought it used for $1,700 back in the 60s. The one here started with 42 (not 420!) HP from a 1.2 lt and the “SS” version had… 50 HP from a 1.5! Small sedan with a cramped back seat, from what I remember. I believe in India they still make this antiquated version and it’s called…”Ambassador”, most taxis there are this model.
October 8th, 2019 at 1:43 pm
17 Sorry, I meant they are not high quality luxury cars. (Buicks are near-luxury) The older ones were not that bad, they existed in Post-WWII Europe for decades, as taxis and private autos. Just nothing remarkable, that was my point, that few would miss them.
October 8th, 2019 at 1:51 pm
Harley will have a number of other electric ‘bikes’ of various styles and sizes coming to the market. And they need them to come out, like, tomorrow. They’ll be less powerful, have less range, but will also be cheaper.
October 8th, 2019 at 1:52 pm
@Larry #19 – That’s a fair point that there’s nothing remarkable about them.
October 8th, 2019 at 1:53 pm
20 I don’t know to whom the smaller EV Harleys will appeal. Even the big EV ones will have little of the classic Harley character, esp the sound.
October 8th, 2019 at 2:02 pm
@Larry #22 – Isn’t that the point? Try to break out of the old and attract new customers. I know Harley messed around with parts of the LiveWire to give the bike its own distinct sound. It may be trying to create new Harley character.
October 8th, 2019 at 2:02 pm
22 If the smaller ones are price competitive, they could compete with Zero, the current top EV motorcycle maker. If nothing else, Harley has a lot more dealers than Zero.
October 8th, 2019 at 2:03 pm
I distinctly remember GM canceling bowling green plant tours in like July of 2017 (start of the 2018 models) for close to 18 months. That’s what started all the speculation of an OHC engine or tooling up for a mid-engine Corvette. So I wonder what tooling changes still need to be made? Also wonder how long the changeover will take as there cant be much left to do.
Not sure why anyone would buy these 1/2 ton diesels that start $10,855 more than the V8 Hemi and only get a combined 5.5 mpg better.
October 8th, 2019 at 2:09 pm
If Harley comes out with a bike with less range then the live Wire it may as well have pedals. The Live Wire has short range when you look at how riders use their bikes. My parents would 2-300 miles on theirs over a weekend. If it is used as a commuter vehicle to work and home it will be fine , but most guys I know ride their bikes all day non stop for pleasure riding.
October 8th, 2019 at 2:09 pm
23, 24 they all seem very expensive to me, but I am spoiled by the little Chinese EV Vespas for $500-600.
October 8th, 2019 at 2:25 pm
#6 – Lack of repair parts – Unfortunately a fact of life whenever there is a strike. I remember back in fall of 1970 I had a 1970 Corvette that required a new convertible top. Since it was my only vehicle back then it was driven a large number of miles. I made sure to take it to the dealer to register warranty issue on the top in September (before the vehicle exceeded 12,000 miles). After the strike was over (67 days) I went to friendly dealer to get vehicle top replaced. Their first reaction was it’s not in warranty – Until I provided the documentation from September when issue was logged.
October 8th, 2019 at 2:30 pm
26 Fifty miles of range would be enough for the way a lot of motorcycles are used. I know people who take long trips on bikes, but I know more who ride to breakfast or lunch at restaurants, (or bars at night, not such a good idea).
In my case, with two bikes in Indiana where I spend part of the summer, 60 miles of range would be plenty for the way I use one of them.
27 As far as Chinese “Vespas,” a few are sold in the US, probably for a little over $1000. They would have a low top speed, maybe 20 mpg, and not much range. An electric Vespa-like scooter with ~60 mph top speed, and 50 miles range, for ~$2000 would appeal to me.
October 8th, 2019 at 2:48 pm
29 that’s pretty good but it seems they are not EV. Still, $1000 is good even for a dirty noisy ICE. I doubt they would only go 20 MPH. In Europe and the rest of the world you can get Taiwanese 50 cc scooters, full size, that take two and can go 60 MPH easy, for less than $2,000. Maybe even 1,000 some other makers.
October 8th, 2019 at 3:00 pm
23 Sean I could see Harley trying to develop a new image that would appeal to a larger demographic but their decline has been happening over years. The main appeal to a Harley was American made followed by its distinct sound. Over the years more and more foreign parts have shown up on Harley’s and with EV the sound is gone. A total makeover is basically where they are and if they are smart they will take a hard look at Tesla and see that it takes offering something quite different to pull in a premium price and just being an EV sporting the HD badge isn’t enough. Certainly not enough to pull double what the competition is asking. They should be looking to offer some sort of gadgets or features that you cant get elsewhere. Or another page out of Elon’s book at least offer top notch performance over the other EVs. Currently HD offers nothing unique with their first EV offering and it will flop in horrible fashion. IMO.
October 8th, 2019 at 3:01 pm
My commute has a 40 MPH Limit (quite theoretical, of course) but on a bike I would not mind if it could not make more than 50 MPH, and have a 40 mile range, if I could buy it under $1 grand here. But now that the weather has cooled, I have started walking to work and back yesterday, today, and at least the end of the month when I fly to China. Half hour to go and 20-25 min to return on foot, thru fairly clean air wooded scenery, although I do cross couple large parking lots. The cars mostly low-rent domestics, interesting to see the people coming out of them, it somehow always seems it’s a woman driver if the car is a Dodge Avenger or a Dodge Dart.
October 8th, 2019 at 3:15 pm
30 There are electric Chinese scooters available in the U.S. You can find them by googling “chinese electric vespa” or similar.
The 50cc scooters go only 35-40 mph. I had a Honda SR50 in the ’90s, which was an “unrestricted” 2-stroke, and it went 39 mph. I had a Yamaha Vino 125 cc 4-stroke that would go about 55.
There used to be, and may still be Chinese 50 cc gas scooters sold in the U.S. for around $1000. The “name brand” 50 cc scooters, like Honda Metropolitan, are kind of pricey, ~$2500. They have a top speed of about 40 mph, but there are probably “hop up” parts available to bump that up a little.
October 8th, 2019 at 3:39 pm
30 Maybe you meant 60 KM/H for the 50cc gas scooters. They will do that.
October 8th, 2019 at 7:56 pm
Just as the GM/UAW are going into over time and we learn of the all too many feeling the effects, I spent the afternoon with a best friend who now is a Gen. Mgr. for a GM supplier company. I now believe it is OK to share the fact that GM is moving one /more supplier operations from Mexico to the U.S. This plan has been hashed out for over a year or so and has nothing to do with the negotiations. I can only say other suppliers may also be moving back to the U.S.
I think the word “inter-connected” best describes the future relationship between manufacturer and supplier.
I think I see more clearly where the auto industry and all it’s supplier’s are headed. It’s always encouraging to see manufacturing returned to the U.S , but I also think it is a more important time than ever for our country not to loose sight of the need to re-solidify the true meaning of “middle class”. Union or non-union, in todays atmosphere, I foresee the best gamble is on the American workforce and not in a auto manufacturer who’s only focus is on receiving gov’t subsidies and paying themselves a ton of money just to fool the stupid.
October 9th, 2019 at 8:03 am
34 I meant 60 miles, 100 kph, then I thought it was maybe too high. Sure they can make 70-80.
Walking from home to office half an hour ago I saw a yellow Corvette which I thought was a C8 but comparing it to the photo in this show it was a bit different, had no marks or logo outside, yellow and black, with some chinese characters in the rear bumper ( lots of small ones)
October 9th, 2019 at 8:27 am
36 Most of the 50s don’t quite make it to 40 mph, about 64 kmh. I know. I’ve owned one, and have ridden others. It is possible to “hop up” the older 2-strokes and make them significantly faster, but stock, under 40 mph is typical. The speedometers on some of them might fool you, though.
October 9th, 2019 at 8:31 am
35 In my experience there are a lot of advantages to suppliers building not only in the same country but near the OEM manufacturing plants. With just in time delivery the amount of inventory is minimized and the costs are not always realized when they first look at sourcing stuff in other countries. Costs that don’t show up on the initial quote like when a design change comes through and there is obsolescence and the supplier has a ton of parts in a warehouse waiting to cross the border and parts in a warehouse on the other side waiting to cross back. Just lots of hidden costs that are not realized until after the parts are being built.
October 9th, 2019 at 11:25 am
38 There are advantages to having suppliers located near the assembly plants, but car companies need to get some of their parts from low cost countries, and maybe need to assembly some of their vehicles in low cost locations to stay in business. If GM or Ford decided to source all of their parts from the U.S., and build all of their engines, transmissions, etc., and assemble all of their vehicles in the U.S., they would probably need to raise their prices 20%, and would soon be out of business. Even those expensive European cars use parts from around the world, and some of those expensive European vehicles are built in low cost countries.