Listen to “AD #2896 – Kia Seltos Impressions; Ford Bronco R Development Details; Daimler Fined $3 Billion Over Diesel Emissions” on Spreaker.
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Runtime: 9:48
0:07 Daimler Fined $3 Billion Over Diesel Emissions
0:47 VW To Build EV Battery Cells & Packs in The U.S.
1:14 Toyota & Mazda Boost U.S. Plant Investment
1:51 Cadillac Hints at Lyriq Pricing
3:08 Ford Bronco R Development Details
4:48 Hyundai Shows Off Elantra N Line
6:21 Genesis Shares Thoughts on Subscription Services
7:47 Kia Seltos Impressions
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DAIMLER FINED $3 BILLION OVER DIESEL EMISSIONS
Daimler reached an agreement with U.S. regulators to settle lawsuits and investigations that it installed software in vehicles to cheat on diesel emission tests. It’s going to cost the automaker nearly $3 billion. The company faced claims from the EPA, Justice Department, CARB and the California Attorney General’s Office, that involved 250,000 diesel powered Mercedes cars and vans. More details will be released once the settlement is made official in mid-September. Daimler says the deal will impact its free cash flow over the next three years, with the largest impact in the next 12 months.
VW TO BUILD EV BATTERY CELLS & PACKS IN THE U.S.
And the company that was responsible for the scrutiny into diesel emissions, Volkswagen, is continuing its aggressive transition to EVs. The company announced it will expand its plant in Chattanooga, Tennessee to build battery cells and packs, along with electric vehicles. It will also build a lab nearby to develop and test cells and packs, which it hopes to have fully operational by spring of 2021.
TOYOTA & MAZDA BOOST U.S. PLANT INVESTMENT
And speaking of manufacturing investments in the U.S., Toyota and Mazda announced they will spend an extra $830 million at their jointly run plant in Alabama, to install more advanced manufacturing technologies. That pushes the total investment at the new facility to $2.3 billion. The plant, which will employ around 4,000 workers, will have the capacity to build 150,000 units of a new Mazda crossover and 150,000 units of a Toyota SUV. The new plant is scheduled to be up and running by next year.
CADILLAC HINTS AT LYRIQ PRICING
Steve Carlisle, GM’s president in North America and former Cadillac president, revealed some pricing information for the new Cadillac Lyriq EV. He said it needs to be priced similar to “mid-size luxe SUVs today… It won’t start with a seven, and it won’t start with a six.” That seems like a good price point, under $60,000, but we’ll have to wait and see what kind of features that price gets you.
FORD BRONCO R DEVELOPMENT DETAILS
It’s time to share some more highlights from the Bronco event I was at on Tuesday. I got to have a great conversation with recent After Hours guest Paul Wraith, lead designer for the Bronco program. Well before a production model was ever shown, I learned that one of the first efforts to bring the Bronco back was to take it racing in the Baja 1000. But that required a ridiculously short development time. The Bronco R, which was created for the endurance race, had to be completed in just 3 months. So, designers quickly carved out the shape they wanted from styrofoam blocks. And while it may have not taken long to make, Paul Wraith said they still incorporated nods to past Broncos and even gave away some production cues. Note how the fender sides come up higher than the top of the hood and look at the shape of the wheels wells, both are elements taken from early model Broncos. Sticking with the hood area, while the Bronco R doesn’t have the hood handles that the production models feature, you can notice little indents on the hood where they belong. The grille is the inverse of a version that’s available on production models, but the rectangle shape incorporates lights for night time racing in the Bronco R. Lastly, you’ve probably noticed the outside mirrors aren’t mounted to the door. They’re actually mounted to a bar that stretches the entire width of the vehicle. That too was featured on the Bronco R, as was the channel that sits on the dash and allows cameras, like a GoPro, to be bolted right into it. So, even though the production Bronco hadn’t been seen by the public yet, Ford was giving away cues to unsuspecting viewers.
HYUNDAI SHOWS OFF ELANTRA N LINE
Hyundai revealed the N Line version of the new Elantra. This is not a full-blown performance N car, but an Elantra with sporty features added on. Under the hood is a 201 horsepower, 1.6L turbo engine that can be mated to a 6-speed manual transmission or 7-speed DCT. It features increased suspension stiffness, multi-link independent rear suspension and larger front brake rotors. Changes to the styling include a unique grille pattern, 18-inch wheels, side skirts, integrated spoiler, chrome exhaust tips and a rear diffuser. The interior is rocking a unique steering wheel, unique seats and gear shifter and metal pedals.
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GENESIS SHARES THOUGHTS ON SUBSCRIPTION SERVICES
A number of automakers have experimented with subscription services over the last few years, some have had success and others have failed miserably. Recently on Autoline After Hours, we were joined by Mark Del Rosso, the CEO of Genesis North America. And he shared his thoughts on whether it’s something that makes sense for his brand.
Mark Del Rosso, CEO, Genesis North America
“Quite candidly there are a segment of customers that believe in subscription. They want to go through different vehicles, at different times and have different solutions made available to them. I think this is definitely the era that a lot of companies take the lead from Genesis and really plug into what do customers want. So, from whether its subscription or ownership etc. what we have to do as a company, as a brand etc. is to be able to offer the customer choice and flexibility. And I believe we’re beautifully positioned. Being a young company, you get to try and test and learn. And I have to really credit our dealers as well. They are an enthusiastic bunch, that’s for sure. And they really want to win in their communities within North America. So, I feel like it’s absolutely something that the customer demands it, we have to find out and figure out what the solution is. So, again anything is possible at Genesis.”
And for more insight into Genesis, you can watch that entire show on our website or YouTube channel.
KIA SELTOS IMPRESSIONS
We had a Kia Seltos come through the Autoline Garage, which is the one of the newest models to hit the American market and just went on sale a couple of months ago. From a styling standpoint, the Kia is a head turner. To our eye, it reminds us a bit of the Volvo XC40. They both have a kick-up in the rear sail panel, and a blacked-out roof to create that floating roof look. The front and rear end of the Seltos may be a bit busy, but the styling gives it a more upscale look than many other small CUVs. Inside it features analog gauges, with white lettering on a black background, making everything crisp and easy to read. We drove a top of the line SX Turbo All Wheel Drive. Performance is perfectly adequate with its 195 horsepower, 1.6-liter engine mated to a 7-speed DCT and it delivers 27 miles to the gallon, which is competitive in the all-wheel-drive, small crossover segment. But we found the Seltos a bit noisy at highway speeds and had to crank up the volume to hear phone calls. But it sure offers a lot of value. The Seltos we drove was loaded with every conceivable option that Kia offers, and yet the price was only $29,485 including destination charges.
But that wraps up today’s show, thanks for watching and have a great weekend.
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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.