AD #2818 – Struggles of Re-Starting Production; Honda CR-V Impressions; Diesel Escalade a No-Charge Option
April 17th, 2020 at 12:30pm
Listen to “AD #2818 – Struggles of Re-Starting Production; Honda CR-V Impressions; Diesel Escalade a No-Charge Option” on Spreaker.
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Runtime: 11:11
0:07 The Struggles Automakers Face to Restart Production
1:20 Jim Farley Putting His Stamp on Ford
2:47 Pony.ai Delivers Goods with AVs Instead of People
3:35 New VW Tiguan Teased in Design Sketch
4:21 Benefits of More Diversity in the Auto Industry
6:03 Ford Won’t Make New Focus RS
6:51 Honda CR-V Impressions
8:22 #TBT: Biagini Passo
9:13 Cadillac Won’t Charge Extra for Diesel Escalade
10:05 Happy 56th Birthday Ford Mustang
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
STRUGGLES OF PICKING PRODUCTION BACK UP
Automakers are struggling with plans to restart production. In China they’re facing parts shortages. In Europe, different countries are on different paths to recovery. In North America, they’ll have to bring production up in Mexico, Canada and the United States in a coordinated fashion. Here’s our Autoline Insight. All you need is a shortage of one critical part and you can’t start production. If it’s something simple, like a sun visor or cup holder, that’s different. Just run them down the line and let the dealer install the missing part. But if it’s critical to the operation of the vehicle, like motor mounts, you just can’t fire up the assembly line. Automakers have to coordinate the resumption of stamping plants, engine plants and transmission plants before they can start their assembly plants. They have to make sure all their suppliers resume production before the assembly plants do. They need all the parts on the line before they can push the Go button. Automakers will try to give priority to their highest profit vehicles, but parts availability is going to dictate which plants start production first.
JIM FARLEY PUTTING HIS STAMP ON FORD
Ford announced some major management changes yesterday. And they show how Chief Operating Officer Jim Farley is starting to put his stamp on how the company will move forward. The goal is to improve product and launch execution; ramping up efforts for connected cars and using big data to better serve customers; improving quality and lowering costs; and creating a dedicated commercial vehicle business unit in the U.S. and Canada. You can click on the link to this article in our show notes to see all the personnel changes, but here’s our Autoline Insight. Farley is really laying out a growth strategy for Ford. Connected cars could provide a gold mine of opportunity for data monetization. Big data analysis can uncover unseen opportunities to grow revenue and cut cost. Commercial vehicles will likely weather the coronavirus storm much better than retail vehicles, especially if the U.S. initiates a major infrastructure initiative. He still has major problems to overcome, namely Ford’s massive warranty costs and its high vehicle costs. Of course, we heard all kinds of talk over the last three years from CEO Jim Hackett on how Ford was improving its fitness. But nothing happened. Now the onus is on Jim Farley to deliver the goods.
PONY.AI WILL DELIVER GOODS WITH AV FLEET INSTEAD OF PEOPLE
With people locked down in their houses, online orders have skyrocketed. So, self-driving startup Pony.ai, which is backed by Toyota and Hyundai, announced it’s going to start an autonomous delivery service for residents in Irvine, California. A fleet of 10 Kona Electrics will deliver packages from local e-commerce platform Yamibuy. Last month Pony.ai suspended its people delivery service for three weeks, so this is a way to offset that.
NEW VOLKSWAGEN TIGUAN TEASER SKETCH
The Tiguan is now VW’s best-selling vehicle world wide and Autoblog got their hands on a design sketch of the refreshed model. Let’s go over what’s new. The thin grille remains, but an accent around its edges flows into the headlights, which aren’t as boxy and have a little tail that extends into the fender. The opening on the lower fascia is larger than the outgoing model and the air curtain vents have been re-shaped. Since the Tiguan is built on VW’s MQB platform, it will receive many of the same updates as the 8th-gen Golf, including interior technology and powertrain options. The new Tiguan is scheduled to go in 2021.
BENEFITS OF MORE DIVERSITY IN THE AUTO INDUSTRY
The auto industry has made good progress on becoming more diverse in its executive workforce. But it’s still falling short of where it needs to be. On Autoline This Week, the panel discussed the benefits of pushing for more diversity.
Michelle Sourie Robinson, CEO, MI Minority Development
“But when you look at the data, McKinsey did a study and I guess the latest data is from 2017. But they literally showed, looking at a thousand companies, that if you look at those companies that have a diverse C-Suite. Literally for women, the earnings before interest and taxes, increased in those companies 21%, for ethnic minorities being integrated into the company, 33%. So, the data’s there, this isn’t just a feel good conversation, everyone gets to thrive and communities get to build and economies are stronger because the corporations and the companies that serve them are stronger when we’re more diverse and inclusive.”
Cheryl Thompson, Founder & CEO, CADIA
“That’s right and the investor community is starting to notice it. You saw Goldman Sachs came out with something, there’s something in their 2019 sustainability report about these are the guidelines we want to see more diversity on boards and in C-Suites. Goldman Sachs said ‘No more IPOs with boards with all bros.’ And I just read something this morning about Blackrock, same thing. So, it’s being really looked at by the investor community. And really if you look at the way the population is going I think that it’s this year that 50.2% of the population under the age of 18 is going to come from a minority race or ethnic group. So, we’re really going to be pushed into this ready or not.”
You can watch that entire show right now on our website or on our YouTube channel.
FORD WON’T MAKE NEW FOCUS RS
The list of cool cars that are getting the axe due to stricter emission standards just grew by one. Ford will not have a new version of the high-performance Focus RS, anywhere in the world. Ford had tried to pair the old engine with 48-volt technology to bring down emissions but it still wasn’t enough. Add in Ford’s financial problems and global sales falling off a cliff due to coronavirus, and it was the nail in the coffin for the RS. And so we bow our head in a moment silence for losing one of the greats.
HONDA CR-V IMPRESSIONS
I’ve had a Honda CR-V to test drive this week, which is the best-selling vehicle in Honda’s lineup. In the U.S. it easily outsells both the Accord and Civic by over 100,000 units a year. The CR-V hits the sweet spot in the market, which Wards classifies as fitting in the Middle CUV segment. The Touring model I drove comes with all-wheel drive and is powered by a 1.5 liter turbo four rated at 190 horsepower. It’s mated to a CVT, or continuously variable transmission, which drives well enough that the average CR-V buyer will not notice it’s a CVT. More perceptive drivers will notice that it’s not as crisp as a stepped gear transmission. The total package is rated by the EPA at 29 miles to the gallon. Like all Honda’s the CR-V imparts a sporting feel, with relatively quick steering and firm suspension, and a good, balanced feeling while cornering. This one is priced at nearly $36,000 including a destination charge of over $1,000. But that gets you almost every conceivable option and all the latest safety equipment, and NHTSA gives it its highest 5-star safety rating. So if you’re looking for a safe, all-wheel drive middle segment crossover, with a solid reputation, the CR-V ought to be on your shopping list.
#TBT: BIAGINI PASSO
As part of Throw Back Thursday, Volkswagen is detailing a Golf variant most of us have never heard of before. The story starts in the early 90’s when VW offered a lifted, all-wheel drive version of the Golf, called the Golf Country. Well, one small Italian company must have thought that car didn’t let in enough fresh air or sunlight because they took the chassis of a Golf Country, blended it with the body of a Mark 1 Golf Cabriolet and sold them as the Biagini Passo. The cars also feature headlights and taillights from other manufacturers, raised ride height and a front brush bar. Some estimate sales of less than 100, some say around 300, but what’s for sure is that most ended up in junk yard due to lack of rustproofing.
DIESEL ESCALADE A NO-CHARGE OPTION
Cadillac announced pricing for the new Escalade. It ranges from $77,500 to just over $101,000, including destination charges. It comes standard with a 6.2L V8 gasoline engine but what caught our eye is that the optional 3.0L inline six-cylinder diesel will be a no cost option. That’s right, Cadillac is essentially offering it for free. The engine cranks out 277 horsepower and 460 lb.-ft. of torque but EPA numbers haven’t been revealed. The Escalade is scheduled to launch this summer but that could be delayed due to the coronavirus. It will be interesting to watch how many customers opt for the diesel, since many buyers shy away from diesels due to the extra cost.
HAPPY 56TH BIRTHDAY FORD MUSTANG
And before we sign off, we have to wish the Ford Mustang a Happy Birthday! It was 56 years ago today that Ford officially let the Mustang out of the barn. The pony car is still popular to this day and is bringing in more fans from around the world. Last year, over 102,000 Mustangs were sold globally, making it the top selling sports car in the world, which is the fifth consecutive year it has held that title.
But that’s it for today, thanks for watching, have a great weekend and we’ll see you again on Monday.
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Comments (24)
April 17th, 2020 at 12:42 pm
With nearly 1,000 fewer moving parts, the EV assembly lines are less likely to be held up by a critical part. The manufacturers who are more vertically integrated are also less likely to face blockage from a critical part. We’ll soon see.
April 17th, 2020 at 12:49 pm
Would that diesel fit in a CT-5? If so, that might be a good option for fuel economy, it they geared it right.
April 17th, 2020 at 12:56 pm
John, how come you say GM offers the diesel “for free”???? Of course it does not. You pay the SAME hefty price you do when you get the excellent 6.2 lt gas engine, which has far greater HP and not much smaller torque, than the LESS than half-size diesel (3.0 lt). AND then you pay more (in soime states today almosf DOUBLE) for the fuel per gallon.
If they offered it for free in the SUBURBAN it would make a little more sense. I see few, if any, Escalade buyers bothering to lose the 6.2 V8 for that diesel.
April 17th, 2020 at 12:58 pm
More likely to buy the diesel for the torque, I don’t see to many Cadillac buyers buying it for fuel economy. Maybe I’m wrong but know several Cadillac owners and none worry about fuel economy.
April 17th, 2020 at 1:00 pm
Re the CR-V I have only test driven the very first generation, a very crude, spartan amd underpowered breadvan that really hated to accelerate and topped at much less than 100 MPH when I drove it.
I got curious to drive it because a former student and then colleague who always knew a lo about cars, whose parents were both doctors and had one of these immortal Mercedes from the 60s with the MB-Tex (which he thought worked out very well for them), but he had Hondas, I was driven in his nice white Accord when he invited me for a seminar at UC Santa Barbara, and then he bought a CRV, 1st gen, and I went to a local dealer and test drove one.
As I said above, that boxy breadvan was a loser. Very underpowered, very sluggish, noisy, and small. What a worthless piece of junk. (And I say this as a very satisfied Honda owner for over 30 years, Civic for 26 and Accord for 14 years)
April 17th, 2020 at 1:03 pm
1 It’s the vertical integration. If you are VI, even if your car has 10,000 parts, you don’t worry, you make them in house. and Tesla is by far the most vertically integrated of any automaker. Seems Musk can’t do anything wrong these days (or the last few years too).
April 17th, 2020 at 1:13 pm
unfortunately the VW Dieselgate fiasco has turned a lot of people off of Diesel engines. the take rate in the Escalade or any passenger car will be very low regardless of it being a no-charge option.
April 17th, 2020 at 1:15 pm
It will be interesting to see the take rate for the diesel in the Escalade, but as others have said, I’d think it would be very small. Based on the EPA, and CR’s results with the Silverado (diesel vs 5.3 for CR), the diesel gets ~30-45% better mpg than the gas V8, depending on city vs highway. The 5.3 Silverado was a second quicker to 60 in CR’s testing of the Silverado, 6.9 vs 7.9 seconds. The difference would probably be at least 2 seconds with the 6.2. I can’t imagine many people buying $100K lifted wagons wanting the diesel, unless they just think it would be “cool.”
April 17th, 2020 at 1:23 pm
5 The current CR-V is a much different vehicle than the first generation. The current one is much more refined, and quicker than the early ones. A Benz like yours got better city mpg in CR’s tests, though.
April 17th, 2020 at 1:29 pm
Actually I just read the link and the 5.2 lt has the SAME torque as the 3.0 Diesel, so the last reason to swap the 6.2 v8 for a Diesel 3 lt 6 has evaporated.
And as for the “free” diesel, I remember a few years ago (may still be true today), the largest of Mercedes’ SUVs, the GL class then, or GLS now, its Diesel was the CHEAPEST model, and even the lowest output gas version, the 550, was MORE expensive than the diesel.
April 17th, 2020 at 1:32 pm
9 It must be. The first gen CRV was truly terrible. The first Rav4 (was driven in one) looked even worse than the CRV and was just as bad.
As for my merc it should also get far better highway MPG than the CRV, and that with a 3 liter and 400 LBFT and 208 hp, and not some .. 1.5 lt turbo coffeemaker.
April 17th, 2020 at 2:15 pm
Honda has some problems with the 1.5t engine with fuel seeping into the oil on cold starts. Along with locking up infotainment screen in Edmund’s longterm CR-V, I feel sorry for the paying beta testers Honda uses them as.
“”In a memo sent to dealers, Honda’s manager of auto campaigns and recalls, Brad Ortloff, said oil in these engines could be diluted because of software settings or potential hardware failures. Some vehicles could experience “lack of power,” leading to cylinder misfires or engine noise.” Consumer Reports
“But if the vehicles are stalling, as some owners have reported, this is a safety issue and Honda should conduct an official recall, which doesn’t expire.” Consumer Reports
April 17th, 2020 at 2:46 pm
11 The current 4wd CR-V beat the E320 Bluetec in CR’s 65 mph highway test, 37 to 35 mpg. The two were tied in the EPA tests.
https://www.fueleconomy.gov/feg/Find.do?action=sbs&id=42299&id=23930
April 17th, 2020 at 2:51 pm
12 The thing I read about the Honda 1.5T “growing oil,” was that gas squirted on the cylinder walls by the direct injectors went past the rings and ended up in the oil. Whatever the actual cause, it doesn’t sound good, if it hasn’t been fixed. The diluted oil would almost surely accelerate engine wear.
April 17th, 2020 at 3:49 pm
being a huge ford focus fan, sad to see the rs get the ax.
April 17th, 2020 at 4:00 pm
I drive a 2018 CRV with 26K miles that had been recalled for the oil dilution issue. As I write it is at the dealer getting the oil changed due to the oil level being above full on the dipstick. I called Honda who told me there was no issue; then tried to blame cold weather in MN and that I drive short trips. I am guilty of both but when I asked why this was not happening to my ‘17 Ridgeline the response was no response – crickets…….Anyway the issue is real and Honda is not addressing it or fixing it. They said they are extending the warrsnty but I have not seen that in writing….
April 17th, 2020 at 4:16 pm
15 It’s not surprising that the RS is going away, never mind the excuses in the article. It was pricey, and would be expensive to develop, done properly. For those who can still buy Focuses, about everyone in the world outside the US and Canada, the “milder,” but still sporty ST will still be around. It’s a sporty, practical car, for a lot less money than the RS sold for. A friend has one with about 150K miles, and it has been reliable. He’ll probably keep it until it has a major problem.
April 17th, 2020 at 6:19 pm
16 From everything I’ve read, the issue is unique to the 1.5t engine, 2016-2018 model years. They supposedly “fixed” it after 2018, probably mostly by delaying gear shifting when the engine is cold.
April 18th, 2020 at 7:58 am
I don’t know what the take rate will be for the diesel GM full size vehicles but the diesel reviews from the Silverado have been pretty much universally positive. The 3.0 liter has good power, stellar torque for its displacement and very good fuel mileage especially when towing. Depending on what the buyer is looking for in a full sized SUV it just may be the ticket. Kudos for GM for at least offering an engine for those seeking diesel.
April 18th, 2020 at 9:21 am
19 I like that the GM diesel is an in-line six, the ideal engine configuration for an engine that size, as long as you can package a longish engine.
Here are the EPA numbers for the different engines in the Silverado 1500. The 4.3 six is the big loser, partly because they use a 6-speed transmission. The 6.2 is apparently not available for the “light duty” Silverado.
https://www.fueleconomy.gov/feg/Find.do?action=sbs&id=41821&id=41818&id=41824&id=41891
April 18th, 2020 at 3:39 pm
20, Kit, I found on the Build and Price feature that the 6.2 is available on the Silverado 1500 but only the higher end trucks: Trail Boss, LTZ and the High Sierra. If variety is what you want, in engines, today’s buyer needs to buy a truck. while some cars offer a couple choices, it’s the trucks that seem to get most the ‘candy’ (like the days of old for cars did).
April 18th, 2020 at 4:13 pm
21, For #20, I was looking at the EPA site, but for 2wd, where the 6.2 did not appear. Doing the same thing, but with Silverado 1500 4wd, the 6.2 is there. The 6.2 must not be detuned much from the one in Corvette and Camaro, because they list it as a premium burner.
Yep, Chevy trucks have a choice of 5 engines, if you want 4wd, and 4 choices with 2wd. From what I saw with the 2wd Silverado, I’d certainly rule out the 4.3, which is slow, and thirsty, not what you’d be looking for. It would be the cheapest, though.
April 18th, 2020 at 4:28 pm
21,22 The Dodge Challenger and Charger are the only cars that have that many engine choices, and you can get most of them with a manual transmission in Challenger. I don’t understand why most car companies whine so much about not being able to get multiple powertrains certified, when FCA does it with a fairly low volume car like Challenger.
https://www.fueleconomy.gov/feg/Find.do?action=sbs&id=41842&id=41837&id=41835&id=41838
April 18th, 2020 at 4:29 pm
23 Oops, this is the link I intended.
https://www.fueleconomy.gov/feg/Find.do?action=sbs&id=42323&id=42387&id=42324&id=42319