This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
FORD GIVES DEALERS OPTIONS ON EV SALES
Ford is shaking up its dealer network to help in its transition to electric vehicles. The automaker isn’t forcing dealers to sell EVs, instead it’s giving them options as to how fast they want to make the switch. Between the beginning of 2024 and the end of 2026, dealers have three options, they can opt not to sell EVs, become certified to sell EVs under a new set of standards or they can go all in and become a “certified elite” EV dealer. Dealers must decide by the end of October what they want to do. There will be another EV opt-in period in 2027 for dealers that decide to stick with ICE vehicles for now. But for those that do decide to sell EVs, there are two options, certified and Model e certified elite. Certified dealers must invest $500,000 to install at least one public fast charger at the dealership, they also be able to service EVs but their allotment of EVs will be limited. Certified elite dealers must invest around $1 million to install at least two DC fast chargers, one of which must be open to the public. Ford is also implementing non-negotiable pricing for its EVs. It’s interesting that Ford is taking a different approach with its dealers than GM, which is offering buyouts to Buick and Cadillac dealers who don’t want to make the investment to sell EVs. And it will be interesting to see which strategy wins out.
TESLA CONSIDERS SHAKING UP CHINA RETAIL STRATEGY
And speaking of selling EVs, Tesla is considering changing up its retail strategy in China. Reuters reports it’s considering closing some of its showrooms in downtowns of big cities and opening stores in suburban areas to save cash and also improve customer service. Owners have complained about long wait times to get their vehicles fixed. That’s because more than half of its stores in China aren’t able to offer maintenance because they’re located in big cities with limited space. But Tesla is working to fix that by opening showrooms in the suburbs and by hiring more technicians. It has 300 job openings for service jobs on its China recruitment website.
TESLA SCRAPS PLANS TO BUILD BATTERIES IN GERMANY
The Inflation Reduction Act or IRA is meant to help bring more EV and battery manufacturing to the U.S. by dictating that EVs won’t qualify for federal tax credits if they’re not built in the U.S. or another qualifying country. And its intended effect seems to be working. According to the Wall Street Journal, Tesla has halted plans to build battery cells in Germany and is considering moving equipment needed to make cells to the U.S. We know foreign automakers and regulators are not happy with the IRA and we’re sure stories like this aren’t making them feel all warm and fuzzy on the inside.
FORD REVEALS ALL-NEW MUSTANG
Nearly 60 years since its original debut, Ford pulled the wraps off the 7th-gen Mustang. Having seen the car in-person myself, I don’t think I can really do it justice in explaining the differences from the last generation. I think it’s just one of those things you have to see for yourself. But a couple of things that stand out to me are the front headlamps, which feature three separated lighting elements that form the DRLs and somewhat match the rear taillamps. And that leads us into the other styling cue I’d like to point out. The deep V-cut in the lights and rear decklid are a real eye grabber. The same could be said for the giant screens on the interior. Ford said it tried to mix modern design with its Mustang heritage and those big screens are part of its modern philosophy. The standard setup will come with two separate displays, but higher end models will see those merged together. The system runs off Sync 4, but Mustang will have its own unique graphics, including an instrument cluster display inspired by old Fox Bodies that will have a turquoise glow around semi-circle gauges. The new Mustang will also have OTA capability and advanced ADAS functions, but it will not offer BlueCruise, Ford’s hands-free highway driving system. Now let’s get to this vehicle’s soul, its powertrain. Base models will come with an all-new 2.3L turbocharged 4-cylinder engine, while an advanced 5.0L Coyote V8 is available as well. The V8 now features dual throttle body system, but Ford’s not giving specs for these engines yet. However, it did announce a new Dark Horse trim line that will come with a modified version of the 5.0L V8 that makes an estimated 500 horsepower. There’s still a lot to unpackage with the new Mustang, so I’m sure we’ll have more in the coming days. But you can look for the sports car to go on sale in the U.S. next summer.
GMC RACKS UP MORE HUMMER EV RESERVATIONS
GMC continues to rack up reservations for the Hummer EV, which includes both the truck and SUV. According to GMC’s marketing director, the brand now has more than 90,000 people that say they want to buy the electric Hummer. That’s 10,000 more than it had in July. But the more impressive part is that 90% of those reservation holders have converted them into actual orders. And with many of those orders for higher trim models, the Hummer could generate a nice chunk of revenue for GM.
HYUNDAI TO TEST FUEL CELL SEMI-TRUCKS IN CALIFORNIA
Fuel cell applications seem to make the most sense in large commercial vehicles and Hyundai is getting funding from the U.S. EPA to start testing its Class 8 XCIENT fuel cell truck in California. Specifically, it’s getting $3.5 million to deploy five of the trucks, which feature a 67 kg fuel tank and a 72 kWh battery pack that will provide an average of 450 miles of range. That’s a huge hydrogen tank. For comparison Hyundai Nexo has a roughly 6 kg tank. Interestingly, the big trucks will be used to deliver liquified hydrogen for First Element Fuel, the largest hydrogen-refueling station operator in the U.S.
THE BEST DESIGNS AT THE DETROIT AUTO SHOW
Now that the Detroit auto show has returned, so has the EyesOn Design award. Designers from the industry, past and present, pick out the best vehicles at the show. And this year they chose the Cadillac Celestiq as the Best Concept Vehicle, which beat out the Buick Wildcat and Lincoln L100. The Celestiq also won the Best Use of Color, Graphics and Materials award. The Ferrari Daytona SP3 was voted the Best Production Vehicle, beating out the Chevy Blazer EV, DeLorean Alpha5 and the Range Rover. And the Audi Grandsphere concept won the Best Interior award, which topped the Audi Urbansphere concept and the Buick Wildcat. So what do you think, how would you have voted?
NACTOY SEMI-FINALISTS ANNOUNCED
The semi-finalists for the North American Car, Truck and Utility of the Year Awards were announced yesterday. The initial list included 47 vehicles but it’s now been whittled down to the 26 semi-finalists, which includes 10 cars, three trucks and 13 utility vehicles. And that’s the topic on today’s Autoline After Hours, John and Gary will be joined by fellow juror members Bengt Halvorson and Jill Ciminillo to discuss what vehicles they believe will take the top honors in each category. So join us this afternoon at 3pm eastern time on our website or YouTube channel for what ought to be a fun debate.
But that wraps up today’s show, thanks for tuning in.
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Comments (26)
September 15th, 2022 at 12:12 pm
Ford’s new Mustang looks a little ‘porkier’ than the old (as the old looked ‘porkier’ than the previous). It will probably be well received and perform as advertised but I’d probably have to say it is not an all-new Mustang (as it was introduced as) and more evolved than led to believe.
September 15th, 2022 at 12:22 pm
A manual transmission will be available in the “new” Mustang, but only with the V8. I see no mention of the GT500, so it must be dead.
September 15th, 2022 at 12:25 pm
Cadillac and Buick dealerships that want to sell EV’s become Chevrolet dealerships by default.
September 15th, 2022 at 12:28 pm
For NACTOY, I’d pick Lyric and Lightning to win, but nothing stands out to me in the car nominees, even though I’m much more a “car guy” than a “truck guy.”
September 15th, 2022 at 12:28 pm
Is it just me, or does the President of MSU say that they have incredible asses?
September 15th, 2022 at 12:29 pm
GM must be very happy they didn’t end up selling the Hummer name, who’s idea was that anyways and are they now doing something important like managing the mailroom.
September 15th, 2022 at 12:40 pm
It will be interesting to see how the fixed price selling goes with Ford EVs. I don’t think Ford can mandate one-price selling. Saturn wasn’t able to. Don’t forget that the S in MSRP is for Suggested.
However, Ford can implement a series of stick and carrot measures to strongly encourage their dealers to stick to the suggested pricing. And, if done well, that will work, as long as Ford keeps their production in line with demand. However, that is no easy task. If inventory starts piling up on dealer lots, the dealers will start to discount the prices to move that metal.
September 15th, 2022 at 12:50 pm
Detroit Auto Show or as they would like to be called North American International Auto Show: I just returned from one of the two Industry Tech Days of the show.
My summary for you:
Ford Motor Company: very good exhibition of Ford vehicles and a separate high-end exhibition of Lincoln, with some futuristic vehicles included. Visitors could ride in a Ford F150 Lightning and experience the acceleration. Visitors could also ride in a Ford Bronco, climbing a 20 feet high bridge.
Stellantis: very nice exhibition including rides on Jeep Wranglers/Gladiators to experience the articulation of the axles and climb a 20 feet high bridge.
General Motors and Toyota: fairly good exhibitions without frills.
All others: bland or non-existent. BMW and Mercedes: any dealership looks better than a few vehicles parked tightly packed together.
I hope most OEMs are just sitting out to see whether this could become a good show again and come back next year. If it stays like this, I believe that the great presence of Ford Motor Company and Stellantis will not be enough to ensure continuity of this show.
September 15th, 2022 at 12:50 pm
7 Fixed price selling is really the way of the future. Things have changed and not really in favor of the dealerships. Since almost every manufacturer has gone to “trim packages” its much easier to price compare even with other dealerships. Also thanks to the internet people will talk about pricing more openly than they used to. So now the consumer has access to online pricing, Blogs and posts from people saying what they paid and vehicles offered with 2 or 3 packages so you cant say well I got this option and that option is why I paid more. So to keep customers from feeling like they got ripped off or have buyers regret. That last thing Ford or any other OEM would want is for a customer to find out that Joe down the street bought that exact same vehicle and paid $4000 less.
They cant hide the pricing as well as they could back in the day.
September 15th, 2022 at 12:53 pm
7 Ford can just quit shipping the more popular models to dealers that ignore their rules.
September 15th, 2022 at 1:01 pm
#7.) I think your right regarding dealer markups, but I thought that Ford was going for a online purchase model for EVs? I may be wrong, for I am more often then not! I think though, that the may come into of their first hand sell ICE vehicles and second hand sell of BEVs, that are off lease. A popular BEV vehicle that has come in off lease, may get the markup treatment!
Sean, I know GM and Ford are going about the EV dealership buy in approach differently, but nothing has been said, at least I don’t remember hearing, any about Lincoln dealership? Ford is going to offer both ICE and EVs at Ford dealerships and your story today outline what the dealers have to to get on board. Yet, with Lincoln going all EV, is Ford buying out those who want no part? Are Lincoln EV’s going to get the same online buyer experience as Ford’s? Will they have to invest in charging stations under this EV plan, like the Ford side does?
September 15th, 2022 at 1:07 pm
It looks like Ford will be buying bodies in white from Chevrolet and sticking Mustang fascias on the ends.
September 15th, 2022 at 1:20 pm
12, I was thinking similar, but Ford mixed it up enough that there is a differentiation. I’m wondering if Chevrolet is going to continue with the Camaro as there has been some rumor if its repeated demise (with Corvette taking stage) at Chevy. All the “Pony” cars have grown to ‘Clydesdales’ (still potent, but portly)
September 15th, 2022 at 1:30 pm
We have a GMC Hummer EV at work. It is portly, ugly, and the interior uses typical cheap GM materials. Other than a cheap flimsy screen I don’t see anything impressive about that vehicle. For the price I would buy literally anything else. I am glad GM is finding customers for it though.
September 15th, 2022 at 1:35 pm
13 The Camaro will probably go away the same time as the CT-4 and CT-5. Do we know when that will be?
September 15th, 2022 at 1:36 pm
@14 just saw it at the auto show: the exterior styling is great. It is a matter of taste, of course.
September 15th, 2022 at 1:46 pm
8. The NAIAS is no longer a major auto show. It is on par with regional/local shows that have a retail focus. The two major shows now for product releases and technology news are the LA Auto Show and CES. Detroit as we knew it is done.
September 15th, 2022 at 1:50 pm
The new Mustang sides defiantly screamed Camaro to me. Minus the fascia’s they certainly look similar. But hey its an American 2 door sportscar.
The lack of driving assist features seems like a no-brainer. You don’t buy those types of vehicles for their autonomy. Hence the manual transmission. Glad to see there is still a vehicle that will still provide a driving experience.
September 15th, 2022 at 2:41 pm
@17 I am fearing that you are right about that
September 15th, 2022 at 4:08 pm
While I know some Mustang fans are disappointed that there no electrification on the new! LOL I was just reading an article in Motor Trend, where the designer/engineer admitted that one of the reason they didn’t do so, was as a result of fans, enthuses and Mustang Clubs, put raged with the Mach-E! Their reasoning was, with Camaro on its last leg and Stellantis already announcing this will be the last ICE Challenger, being the only ICE pony car may work to their advantage! That said, there is nothing that keeps Ford from build a BEV to compete with the Charger EV, should their sales take off. At least it’s nice to here that, while the Mach-E has been a sales success for Ford, they are listening to their customers and giving them what they want.
September 15th, 2022 at 6:52 pm
I suspect Tesla is just changing the order of battery manufacturing equipment. Maximize early return on investment and then equip Berlin. Germany might retaliate with equal or better incentives.
September 15th, 2022 at 8:52 pm
20 I suspect the Mustang club people’s objection to the Mach-E was the same as mine. They don’t object to the vehicle itself, but don’t like calling a lifted 5-door hatchback a Mustang, never mind the powertrain.
September 16th, 2022 at 7:38 am
22 It does seem that the traditional OEMs especially Ford are still trying to find their way around electrification. They have these historic models like Mustang and try to capitalize on that loyal following by sharing its design cues and name. I think they should have named the Mach-e the Capri or a number of other defunct old Ford or Lincoln names. Because the biggest problem with something like the Mach-e is in a lot of aspects its a direct opposite of the sportscar its sharing a name with. EVs are quite most have lots of autonomy and are heavy on the electronics side. Historic muscle cars like Mustang were heavy on the mechanical side loud with a deep V8 rummble and it was about experience of driving not having a computer drive for you.
The same was applied to Harley Davidson. As great of a company as they were the EV transition is to a product that is almost nothing like their current offerings other than its on two or three wheels.
These traditional OEMs will need to find a way to build excitement for their new products without trying to ride the coat-tails of their historical successes. They offended lots of Mustang fans with the Mach-e. Was it enough to push those people away from the brand? Hard to tell sales are down but with everything else going on its hard to tell if its lost interest or chip shortages or something else.
I guess as the time draws near to full electrification will it really matter what names are used or scavenged from icons like Charger, Challenger, Mustang, Camaro and Corvette? It only rubs people the wrong way for the short period during this transition.
Either way there is no doubt that climbing behind the wheel of a muscle car smelling gasoline, burning tires and the rumble of a supercharged V8 engine vibrating the steering wheel in your hands while you throw a shifter into gear and dropping the clutch will never be the same as the whizzing whirl of a electric motor winding up and even though it may throw you back in your seat even harder than any ICE the driving experience will never compare in my opinion.
I have driven an EV and the best way I could describe it, because it was incredibly quick, was its like going to the movies and the ICE is Dolby surround sound that is almost too loud. Its an action movie and you feel the explosions from the sound waves. Your engaged. Then the EV version is the same movie with even better picture but the sound comes from an I-phone two rows up. You get to see the same movie but the experience is quite different.
September 16th, 2022 at 8:26 am
22/23) The Mustang is Ford’s Corvette. Could you imagine GM making an SUV and calling it a Corvette ZR-1e? Could you imagine if Lamborghini had called their Urus SUV “Countach e”? The Mustang people don’t hate that it is electric. They hate that it is an SUV. They are still buying mustangs though. The sales decline is typical of an aging line up and the rumored replacement that has been swirling in mustang circles for the past year.
September 16th, 2022 at 8:53 am
It looks like after 2023, Ford will have the “pony car” market to themselves. Motor Trend says the Camaro will go away in 2024, and be replaced with an electric sedan.
September 16th, 2022 at 9:25 am
24 Yeah I really hope GM keeps the gas engine in the Corvette until they basically have to change. I could easily see them offer a level of electrification soon and go with a FWD electric assist for even quicker acceleration but it will be a sad day when it goes fully BEV.
I don’t think it will be as bad for GM to lose the Camaro as Ford losing the Mustang because they have the Corvette. Ford has the GT but lets face it that’s an exercise for the SVT and at 500k for elitist’s. Mustang is an icon within Ford and I have no doubt it will live on even in BEV form. Hopefully not as anything other than a 2 door sportscar.
I attended a kitcar show years ago I saw a 1965 Mustang body that was placed over a 1997 Mazda Miata. The company was M1stang. Dont know if they’re still in business. Anyway they only had to shorten the car at the doors a few inches and without a back seat thats fine. Looked a little funny with the top up but with the top down it looked great. Anyway Ford should make the BEV Mustang a two seater about the size of the old 60′s Mustangs and keep it simple and affordable. A real screamer offered in hard and soft top with a trunk, or hatchback. Obviously would need a modern twist on the design but I think it would sell without departing too far from its heritage.