Runtime: 7:48
0:30 Big Truck Sales Soar
1:16 Chevy Adds More Silverado Trim Levels
2:31 Alex Zanardi’s Remarkable Comeback
3:43 Infiniti Teases Electric Concept
4:06 Japanese Automotive Invitational at Pebble Beach
4:41 JLR Plans Restoration Facility in U.S.
5:44 How Automakers Can Free Up Billions in Capital
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On today’s show…Sales of heavy trucks are screaming ahead and we’ll tell you why that’s good for car sales…we’ll also tell you how automakers could free up billions of dollars in capital…and race car driver Alex Zanardi makes a remarkable comeback. All that and more coming right up on Autoline Daily.
This is Autoline Daily the show for enthusiasts of the automotive industry.
BIG TRUCK SALES SOAR
Sales of medium and heavy-duty trucks in the U.S. are soaring like we’ve never seen before. Medium-duty, Class 4 through 7 trucks, shot up 20% in July. Class 8 semi-trucks posted a whopping 40% gain. Overall, the big truck segment was up 30% in July. And through the first seven months of the year, sales are up 18%. And this bodes well for passenger vehicles. Big trucks are a leading indicator for car sales and the overall economy. Before this year started analysts expected car sales to drop. Instead, they’re up. Sales of big trucks not only predicted that increase, they suggest the good times will continue to roll.
CHEVY ADDS MORE SILVERADO TRIM LEVELS
Chevrolet believes it can boost pickup sales with its completely redesigned Silverado. The outgoing model was offered in 5 different trim levels. But the new one offers 8. Two of the new trim levels were added at the bottom of the lineup, and one at the top. Chevy believes that adding more trim levels will attract more buyers by offering them greater choices of prices and content. Will that be enough to catch the Ford F-150? Probably not. But it could close the gap.
| 2019 CHEVROLET SILVERADO TRIM LINES |
|---|
| 1. Work Truck |
| 2. Custom |
| 3. Custom Trail Boss |
| 4. LT |
| 5. RST |
| 6. LT Trail Boss |
| 7. LTZ |
| 8. High Country |
Don’t forget to join us for Autoline After Hours tomorrow. We’ll be talking about all the changes going on with auto shows with Craig Erlich from the exhibition company George P. Johnson. So join John and Gary for some of the best insights into what’s going on in the automotive industry.
Alex Zanardi had a horrific crash in an Indy race 17 years ago. And now he’s making an amazing comeback. We’ll tell you about that right after this.
ALEX ZANARDI’S REMARKABLE COMEBACK
After a terrible crash in IndyCar in 2001, Alex Zanardi had his legs amputated. But that didn’t stop him from getting back behind the wheel. Now he’s training to race for the first time without using prosthetic legs. The BMW M4 DTM car he hopes to race in Italy has had a number of unique modifications. Instead of an artificial leg permanently attached to the brake pedal, Zanardi will use a hand brake mounted in the center console area. The hand brake also has an extra shifting paddle, so he can brake and downshift at the same time. A centrifugal clutch doesn’t require an extra hand to operate a clutch lever. And to accelerate he just has to pull on a ring mounted behind the steering wheel. Zanardi just has one more test to pass before he can compete. All drivers have to prove they can get out the car on their own in just a few seconds to ensure that no-one has to wait for outside assistance if a fire breaks out. Zanardi has shown he can do it in about 4.5-seconds, which is well under the required time. And Zanardi says not having to swing his legs around, actually helps him get out faster.
INFINITI TEASES ELECTRIC CONCEPT
In other racing news, Infiniti will be showing off a new electrified performance concept car at this year’s Pebble Beach Concours. It unveiled the really cool, 40’s-inspired Prototype 9 last year and this new concept will provide clues to where the INFINITI brand is heading. The company says for it, electrification means performance.
JAPANESE AUTOMOTIVE INVITATIONAL AT PEBBLE BEACH
And to demonstrate the prowess Japan brings to the industry, Infiniti is helping to launch the first-ever Japanese Automotive Invitational at Pebble Beach. On display will be vintage Japanese vehicles, like a 1964 Datsun 1500 Roadster, 1966 Toyota 2000GT, 1970 Mazda Cosmo Sport and 1994 INFINITI J30, which are said to exemplify Japanese innovation, design and performance. Events at Pebble Beach start on August 21st.
JLR PLANS RESTORATION FACILITY IN U.S.
If you own a classic Jaguar or Land Rover in the U.S. and you need your vehicle restored, you’re in luck. JLR just announced its opening a restoration, sales and servicing center in Savannah, Georgia next summer. Owners of Jag or Land Rover vehicles that have been out of production for 10 or more years, can get everything from a vehicle check-up to a full restoration at the new facility. It’s the first one outside of Europe and will employ 75 skilled employees.
Automakers need billions of dollars in capital to invest in new products, electrification, autonomy and mobility services. Coming up next, John will be here to explain how they could get that money without borrowing a dime.
HOW AUTOMAKERS CAN FREE UP BILLIONS IN CAPITAL
Sergio Marchionne, the former CEO of Fiat-Chrysler, is no longer with us but one of his ideas will live on. In his famous essay “Confessions of a Capital Junkie” Marchionne declared too many automakers are duplicating what the others are doing.
Some of the duplication in this industry is crazy. General Motors makes 2.0 liter 4-cylinder engines. Ford makes 2-liter engines. FCA makes 2-liter engines. I’m absolutely positive none of their customers could tell the difference between those engines. The specifications are so similar. The same goes for the different 6-speed and 8-speed automatic transmissions they make.
Most owners can’t tell you what the displacement of their engine is. Or how many gears are in the transmission. Most don’t care, just like they don’t care who supplied the steel, who made the headlamps or who makes the seats. All they want is a good-looking, comfortable car that drives well, is efficient and reliable.
Engines and transmissions are extremely capital intensive. They take years to design and need a huge amount of tooling. GM, Ford and FCA spend billions of dollars every year duplicating what the other is doing. By spinning off their powertrain operations and merging them into a new company, they could free up billions in capital.
Right now, the car market is going great. No one is talking of merging their powertrain operations. But this is a cyclical industry. And when the next downturn hits “Confessions of a Capital Junkie” will provide the inspiration for what needs to be done.
Anyway, that’s how I see it and as always, we welcome your feedback in the comments section. And with that we wrap up today’s show, thanks for watching and please join us again 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.
