AD #2875 – PSA & FCA Announce New Name; Nissan Cutting Global Output 30%; Lordstown Endurance Interior Revealed
July 16th, 2020 at 11:32am
Listen to “AD #2875 – PSA and FCA Announce New Name; Nissan Cutting Global Output 30%; Lordstown Endurance Interior Revealed” on Spreaker.
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Runtime: 9:19
0:07 Germany Offering Free Renaults with New Subsidies
1:04 European Sales Show Improvement
1:43 U.S. Manufacturing Up, But Not Back to Normal
2:18 Nissan Cutting Global Output 30%
3:47 PSA & FCA Announce New Name
4:20 VW Sells 50% of Seat Maker Sitech
5:47 Lordstown Reveals Endurance Interior
6:34 Porsche Details New 911 Turbo
7:34 First Popemobile with Glass Bubble
8:25 More Wisconsin Barn Finds
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GERMANY OFFERING FREE RENAULTS WITH NEW SUBSIDIES
Well no wonder sales of the Renault Zoe surged in Europe. Last week we reported registrations were up 107% last month, the bulk coming from France and Germany. We noted that was due to new EV incentives, but we didn’t realize how generous those incentives are. In France buyers get a 7,000 euro subsidy, while in Germany it’s 9,000 euros. And Bloomberg reports a dealer chain in Germany is advertising a lease for the Zoe that is entirely covered by subsidies. In France, the Zoe can be leased for 79 euros a month. That’s not the only screaming deal. The smart EQ is available via lease in Germany for under 10 euro a month. Most EVs will likely benefit from the incentives, but this also goes to show what we’ve been saying for a while; EVs need subsidies to grow sales. Without them, sales fall off.
EUROPEAN CAR SALES SHOW IMPROVEMENT
And speaking of car sales in Europe, the numbers are still weak but the auto industry is showing signs of improvement. According to the European Auto Industry Association, automakers sold more than 1.1 million vehicles in June, which is down 24% compared to a year ago. But that’s an improvement over the 57% drop in May. All countries in Europe saw sales fall except France, which posted a 1.2% gain thanks to incentives for low-emission vehicles. Through the first half of the year, sales are down about 40% in Europe.
U.S. MANUFACTURING UP, BUT STILL NOT BACK TO NORMAL
U.S. manufacturing output increased again last month. Reuters reports it was up 7.2% in June, after increasing 3.8% in May. Here’s our Autoline Insight. Automakers have been running a lot of overtime to make up for lost production and low inventory levels. In fact, total inventory in the U.S. is 1.3 million vehicles below where it was last year. And while automakers continue to increase production, output is still over 11% below where it was in February.
NISSAN CUTTING GLOBAL OUTPUT
In other production news, Reuters reports that Nissan is cutting its global output by 30% through December due to slumping sales. The automaker will produce around 2.6 million vehicles in that timeframe, down from 3.7 million last year. The automaker was struggling before the pandemic but it’s only adding to its woes. In addition to the production cuts, back in May it was reported that the company will cut 20,000 jobs, mostly in Europe and developing countries, in an effort to turn around its profitability.
What is Michigan’s chief mobility officer’s plans for electrification, autonomy and sustainability? Those will be a few of the topics we dive into on today’s Autoline After Hours. Pete Bigelow from Automotive News will also join John and Gary on the show. That’s today at 3PM eastern time on our website or YouTube channel.
PSA & FCA TO BE KNOWN AS STELLANTIS
Once PSA and FCA merge, the automaker will be known by a new name. The two companies announced that the corporate name of the new group will be called STELLANTIS. But don’t worry, the names of the car brand’s will remain the same, the STELLANTIS name will be used exclusively at the Group level. The name comes from the Latin verb “stello,” which means to brighten with stars. The 50:50 merger between PSA and FCA is expected to be complete in the first quarter of 2021.
VW SELLS 50% OF SEAT MAKER
Volkswagen is one of the most vertically integrated automakers. Like Tesla and Toyota, Volkswagen makes a lot of basic components in-house rather than outsourcing them to suppliers. But maybe we’re starting to see VW back away from that strategy. Up to now VW made car seats in-house with its subsidiary called Sitech which has 5,000 employees and 6 factories. But VW just sold 50% of Sitech to the German supplier Brose. That will allow the seat maker to start selling to other automakers, not just VW. Here’s our Autoline Insight. Vertical integration is nothing new. Henry Ford perfected it at the Rouge plant 90 years ago, where iron ore went in one end of the manufacturing complex and Model A’s rolled out the other end. By building everything in-house automakers can eliminate the profit that suppliers would have tacked onto the cost of their components. So it can be more profitable. But not always. These days, suppliers have become so large they often have higher manufacturing volume and lower costs than automakers. Also, vertical integration is very capital intensive. And VW probably decided it was better to invest money in EVs, AVs and connectivity instead of investing it into making seats.
LORDSTOWN SHOWS PRODUCTION ENDURANCE INTERIOR
Lordstown Motors revealed renderings of the interior of its electric pickup, the Endurance. It’s a bit simple, but it looks OK and it’s important to remember that this is a commercial truck. So, it’s likely designed to take some abuse, which translates into a more utilitarian look. Lordstown says reservations and letters of intent have surpassed its first year production goal of 20,000 units, but that deliveries will be pushed back from the beginning of 2021 to the summer.
PORSCHE REVEALS NEW 911 TURBO
On the heels of the 911 Turbo S, Porsche is now introducing the 911 Turbo. The interior and body styling are very similar, so we’ll stick to the big differences. The 3.8L twin-turbo six-cylinder boxer engine in the Turbo puts out 572 horsepower and 553 lb-ft of torque, which is funneled through an 8-speed PDK transmission. In the S that engine is tuned to 640 horsepower and 590 lb-ft. Despite that gap in power, the Turbo is only a tenth of a second slower zero to sixty than the Turbo S. Then add in that the Turbo is more than $30,000 cheaper and we wonder, why anyone would buy the Turbo S? Maybe that’s because I can’t ever imagine being able to afford a vehicle over $100,000, let alone $200,000.
FIRST GLASS BUBBLE POPEMOBILE
Here’s something we think you might enjoy. The first popemobile to feature a glass bubble is now on display at the Mercedes-Benz Museum. The G-Class was modified for Pope John Paul II’s visit to Germany in 1980. It features a bench seat that sits on a raised floor, which is surrounded by artificial glass so onlookers would be able to get a view of the Pope. It was changed to bulletproof glass after an assassination attempt a year later. Other features include integrated lighting, an extended wheelbase, a 75 kW or 102 horsepower 4-cylinder gas engine and a powerful air conditioning system, so the Holy Father wouldn’t get cooked. The vehicle is part of a broader collection of G-Classes, which celebrates its 40th anniversary this year.
AT LEAST IT’S NOT A NASH
And speaking of classic vehicles, here’s another Wisconsin Barn Find. We told you it wouldn’t be a Nash. While I don’t think this will be a hard one to identify, leave your guesses in the comments, I had a much different reaction to this Barn Find than any other that I can think of. I actually wished I owned it. I would fix up the brakes, engine, trans, suspension, things like that. But I wouldn’t change a thing about the exterior. I love the patina. What do you think?
But that’s it for today, thanks for watching and please join us again tomorrow.
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Comments (28)
July 16th, 2020 at 11:55 am
Hey Sean,
Your take on ‘restoring’ that Barn Find says a lot about you
I’d certainly get it back to being all shiny and polished. But then again, I’m not a big ‘patina’ guy like yourself 
July 16th, 2020 at 11:57 am
With a somewhat “tongue in cheek” I say, So now Jeep has to support Fiat and PSA. Straws may soon break the camel’s back.
July 16th, 2020 at 11:57 am
STELLANTIS: If your erection lasts more than four hours contact your physician as side effects can be life threatening.
July 16th, 2020 at 11:59 am
Sean I am also a huge fan of patina. It gives any vehicle character. I am a huge supporter of making a vehicle safe to drive but leaving it the way you found it on the outside.
By the looks of the crank out window someone made it into a motorhome. I would do the same as You chassis & engine repairs and leave the rest alone.
July 16th, 2020 at 12:09 pm
Re: FCA/PSA You are now a witness to the demise of Dodge & Chrysler as PSA will suck every cent of development money to support Jeep & Ram and those profits will fund Maseratti & Alfa-Romeo.
July 16th, 2020 at 12:36 pm
You’re right, it is extremely easy, but also a pretty cool find. Chevy Step Van. It would fun to fix and sell. I’m sure there would be no problem finding it a new home.
July 16th, 2020 at 12:38 pm
The barn find is a Chevrolet Step Van. GMC’s version was called the GMC Value Van. Not sure of the year, though.
July 16th, 2020 at 12:40 pm
Okay this is actually tougher than it seem, Sean!
It’s clearly a Chevy P30 Step-Van, but is it a 1968 or a 1986?
This thing almost made no changes in its existence, but lets (try) and narrow it down.
That said, I’m fairly confident it is a 1970s model, specifically a 1971 Chevy P30 Step-Van.
The giveaway? About the only thing that changed in 30 some odd years, the badge design in front of the doors!
July 16th, 2020 at 12:40 pm
RE: Lordstown Endurance interior…. It reminds me of a Hyundai Palisade.
July 16th, 2020 at 12:56 pm
Barn Find is typical step van like those used by USAF flightline maintenance mechanics. I spent many hours riding in the back of one during my assignments from Turkey to SEA and many places in between. But I never rode in one with an auxilary heater, but wouldn’t be surprised if that is what we are looking at.
July 16th, 2020 at 12:57 pm
That barn find could make an awesome dirt bike hauler or race weekend camper.
July 16th, 2020 at 1:02 pm
Put several miles on a Chevy Step Van like that when I was a milkman during summers back in the late 70′s.
July 16th, 2020 at 1:04 pm
Best of luck to Lordstown, rooting for them.
I’m a patina guy too but I wouldn’t say no changes to this chevy step van exterior. that vent on the side would need to go. Other than that it does look about perfect.
July 16th, 2020 at 1:09 pm
12. My thought on the “barn find” was “milk truck.” I guess I was right, but not very descriptive about who made it, etc.
3. Stellantis struck me that way too, another nonsense word similar to ones used for prescription drugs advertised on TV.
July 16th, 2020 at 1:10 pm
Sean,
As a fan of patina, I hope you’ve seen the American Pickers episodes related to the finding and restoration of the Aerosmith tour van!
July 16th, 2020 at 1:10 pm
I suspect Peter DeLorenzo has a lot to say about Porsche’s price premium between the Turbo and Turbo S. And the small performance difference (despite healthy HP and torque deltas) is a testimony to the limits of trading low RPM torque for high RPM advertising numbers. In other words, welcome to the World of Diminishing Returns.
July 16th, 2020 at 1:28 pm
Under 10 Euros a month for a car sounds like a giveaway. Again inflating EV sales and not a true market demand.
Sean that 11% reduction of production output may also be partially attributed to many plants running with less people due to covid restrictions. Changes within the workplace may have impacted output.
VW sounds like they are doing what GM and Ford did years ago with them spinning off Delphi and Visteon. Allows them to bid on other programs but turned out to be their demise. But you are right that often times a supplier can buy equipment and make 2 million headlights cheaper than OEM tooling up to make 120k headlights.
Lordstown moving dates back already. Humm not a good sign.
July 16th, 2020 at 1:32 pm
My father worked for GMC in Pontiac from WW II until he retired in 1975…he used to refer to for ‘barn’ find as a PIE WAGON. He bought a well used one to make into a motorhome back in the late ’60′s.
July 16th, 2020 at 1:50 pm
In addition to non-OEM suppliers having the efficiency of making large numbers of similar parts, in the U.S., at least, the suppliers pay the employees less than the OEM employees make, and with much worse benefits. I don’t know if it’s that way in Europe.
July 16th, 2020 at 5:36 pm
3 lmao
July 16th, 2020 at 8:19 pm
Free Renault Zoe? LOL. You’ll get what you paid for.
Saw my first new Bronco just 20 min ago. Ugly as sin in black. What a STUPID design. DOA.
A new Porsche Turbo for $200k is a SCREAMING BARGAIN, if you KNEW how much the ten years old Turbo S went in the old country, which was 320,000 EUROS back in 2010, and for those currency challenged, this is almost $400,000.
July 16th, 2020 at 9:35 pm
I wouldn’t bet on a new 911 Turbo or Turbo S being a good investment, but the last of the air cooled 911s are already doing quite well. The older, pre-911 Porsches are going crazy, with some of them selling for over a million, and the cheapest ones around $80K. The Porsche trucks, though, are just used cars, depreciating about like most other “premium” crossovers, which is to say, pretty quickly.
July 17th, 2020 at 8:02 am
I think the biggest reason for using the supply base instead of vertical integration is cash flow. It is expensive tooling up a car and all of it’s parts. If you are vertically integrated that cost is born by the OEM directly at the time required for that investment which takes all of your available cash. When you use the supply base, you can defer that cost to a time when the car is released and then pay it down over time. Think of it as a interest free loan on development costs. You won’t get such a deal from any bank. The suppliers shoulder the burden of the development cost. If the car is a flop, guess who gets stuck with the bill? The OEMs usually will tell the supplier to make their obligation go away or else no new business.
July 17th, 2020 at 9:19 am
I was at GM, and then Delphi, during the Delphi spinoff. GM didn’t say it, but the main reason for Delphi was to rid GM of underperforming in-house suppliers like Harrison Radiator, and others. There was a lot of BS about how great Delphi would be, since they could get more non-GM business, but Delphi went bankrupt before GM, and I lost part of the retirement benefits I was promised. Some of Delphi’s latest short, convoluted history, is that it has split into two companies, one headquartered in the UK, and one in Ireland.
July 17th, 2020 at 10:43 am
The US market continues its slide into an automotive waste land of trucks.
https://outlook.live.com/mail/0/inbox/id/AQMkADAwATExADY1Ny00YzM1LTFjYTUtMDACLTAwCgBGAAADD3cax6I6R0WECg1k3%2FUjogcAUNmTyDvVZkyvA3iL25FP%2FwAAAgEMAAAAUNmTyDvVZkyvA3iL25FP%2FwAD1ixRkgAAAA%3D%3D?RpsCsrfState=633d88fa-2541-9092-b84b-b3f77c9c0268&wa=wsignin1.0
July 17th, 2020 at 10:49 am
25. Wrong link. The intended article is behind an autonews pay wall. In summary, the Civic Coupe, Accord manual, and Fit are going away from the U.S. market.
July 17th, 2020 at 11:19 am
24 Yeah I was doing a lot of work with Visteon back then and basically the same thing happened. Told everyone at Visteon they would grow being able to bid on other business but that never happened and soon the doors closed and divisions were sold off.
If I worked at that seating division of VW I’d be worried.
July 17th, 2020 at 12:48 pm
Not sure but maybe a ZIP VAN that was made by Studebaker.