0:30 Trump Wants to Cut Fuel Economy Standards
1:28 Mercedes May Leave Detroit Auto Show
2:24 Ford Boosts Large SUV Production
3:20 Porsche Offering 3D Printed Replacement Parts
4:27 Top European OEMs
5:17 Tesla Model 3 Analysis
On today’s show…the Trump Administration wants to make cuts to fuel economy standards…Mercedes may pull out of the Detroit auto show…and we’ve got the latest results of Tesla Model 3 teardown that Munro & Associates is doing. All that and more coming right up on Autoline Daily.
This is Autoline Daily the show for enthusiasts of the automotive industry.
TRUMP WANTS TO CUT FUEL ECONOMY STANDARDS
The EPA, NHTSA and California are currently negotiating changes to fuel economy rules enacted during the Obama Administration. And Bloomberg reports the Trump Administration is looking to make big cuts to those standards. One of the proposals NHTSA is considering, would make the average fleet wide fuel economy 35.7 MPG by 2026, down from the current 46.6 MPG standard. In that scenario, about 10% of all-new vehicles would need to be hybrids or plug-ins, down from 61% for the Obama standards. NHTSA is also considering proposals that would enact standards as early as the 2021 model year or as late as the 2026 model year, which would give automakers more time to meet the rules. Some automakers want to ease the rules because electric cars aren’t in high demand like trucks and SUVs.
MERCEDES MAY LEAVE DETROIT AUTO SHOW
Over the last few years, Mazda, Porsche, Volvo and Jaguar Land Rover have pulled out of the Detroit auto show and now another automaker could be added to the list. Mercedes-Benz is considering not having a display at next year’s show. The company is looking into unveiling products at tech shows like CES or other special events. But if Mercedes pulls out it would be a severe blow to the North American International Auto Show as it’s officially called. And if Mercedes pulls out, you have to wonder if BMW and Audi would follow suit.
And we’ll be back with more right after this.
FORD BOOSTS LARGE SUV PRODUCTION
Big trucks and SUVs practically mint money for automakers. The high-end Platinum edition of the Cadillac Escalade is estimated to generate a variable profit of around $30,000, which is why it’s so surprising that Ford let GM walk away with the large SUV segment almost to itself. GM has 64% of the large luxury SUV segment and Bloomberg reports that gives the company a $2 billion pretax profit advantage over Ford. But Ford hopes to change some of that with a $25 million investment into its Kentucky plant, which will allow Ford to build 25% more Expeditions and Lincoln Navigators than it originally planned for. Even the base models generate profits that exceed $10,000 a vehicle. This latest round of money is in addition to a $900 million investment Ford made to the plant in June.
PORSCHE OFFERING 3D PRINTED REPLACEMENT PARTS
3D printing keeps making impressive technological improvements and now Porsche is working to make sure a customer’s restoration project, never stalls out due to an obsolete part. Porsche Classic currently offers about 52,000 parts and pieces to keep projects going and now is adding 3D printed parts to its catalog. They’re typically the really hard to find stuff, like the release lever for the clutch on the Porsche 959, of which only 292 were ever built. In all, there are 9 plastic and metal parts that Porsche is 3D printing and it’s thinking of adding 20 more.
Coming up next, we’ll show you the latest results from the benchmarking study Munro & Associates is doing with Tesla’s Model 3.
TOP EUROPEAN OEMs
The European car market is enjoying healthy sales again. Last year automakers sold 20 million light vehicles there, which was up a solid 3.6% from the year before. Do you know the ranking of the lead automakers in Europe? There’s been some significant changes. Volkswagen AG, which includes Audi, Skoda, SEAT, Porsche and Rolls Royce, continues to dominate the market. But PSA, which includes Peugeot and Citroen, has rocketed up the rankings into second place thanks to adding Opel and Vauxhall, which it bought from General Motors. Renault, which includes Dacia, is in third place. Then comes Ford, followed by FCA which had quite a good year. Daimler and BMW round out the list of automakers which sell at least a million light vehicles in the European market.
|2017 TOP EUROPEAN OEM RANKINGS|
TESLA MODEL 3 ANALYSIS
We went back out to Munro and Associates to learn more about the benchmarking study it’s doing on Tesla’s Model 3. All this week we’ll be showing you excerpts of our latest video which has to do with the driving dynamics that Munro is studying. Our last video, which pointed out some of the poor build quality of the Model 3, was attacked by Tesla fans who can’t seem to tolerate anyone pointing out flaws in the car. In this opening clip, Sandy Munro makes clear that his statements are based on careful measurements and analysis.
(The Tesla Model 3 analysis is only available in the video version of today’s show.)
We’ll have more to show you all week long on what Munro and Associates is leaning from its benchmarking study on the Model 3.
But with that we wrap up today’s report. Thanks for watching and please join us again here tomorrow.
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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.