AD #2460 – Ford Tries to Calm Dealer Fears, Hatchbacks Making a Comeback, Mid-Range Model 3 Orders Open

On today’s show… Ford shows off a bunch of future products… Tesla announces a new model that is somewhat cheaper… and FCA shows how much fuel you can save with stop/start systems. All that and more coming right up on Autoline Daily.

This is Autoline Daily the voice of the automotive industry.

FORD TRIES TO CALM DEALER FEARS
Ford held a big meeting with CEO Jim Hackett and its 4,000 US dealers in Las Vegas yesterday to calm their fears that the company is in trouble. Hackett and other company officers showed dealers a bunch of future products that are coming. And it made clear it will replace the Fiesta, Focus and Fusion with crossovers that cost about the same. Ford will also deliver cars to dealers in 38 days after they order them, compared to the 82 days it takes today.

FORD LAUNCHES NEW AD CAMPAIGN
No doubt you’ve seen those television ads for “Built Ford Tough.” Well now they’re changing that to “Built Ford Proud.” The ads will launch this Saturday on digital, print and broadcast outlets, and will feature actor Bryan Cranston from the popular TV series “Breaking Bad.”

FIRST LOOK AT SHELBY GT500
We also got our first look at the Mustang Shelby GT500. So far, Ford has only teased the car, but somebody at the meeting sent out this photo and it made its way to Instagram. That sure is one wicked-looking snake.

FORD GT GETS AN EXTENSION
And Ford announced it will make an additional 350 examples of the Ford GT. With the average price around $500,000 that will bring in an additional $175 million. But you still have to go through the extensive application process if you want to get your hands on one.

WALL STREET YAWNS AT FORD ANNOUNCEMENTS
Despite all the big news, Wall Street largely yawned at all these Ford announcements. The stock price dropped nearly 3% to only $8.51. And Morgan Stanley downgraded its outlook for Ford because it believes the company is not taking decisive action fast enough.

Could hatchbacks make a comeback in the American market? That’s coming up next.

HATCHBACKS MAKING A COMEBACK
We’ve got some interesting data from Wards that shows hatchbacks making something of a comeback in the US market. Even though sales of passenger cars are plummeting, and hatchback sales are going down too, they’re not dropping as fast. And so, as a percentage of sales, hatchbacks are growing. Wards looked at all the models and the top 5 sellers are the Toyota Prius, Honda Civic, Ford Focus, Honda Fit and Subaru Impreza.

TESLA TAKING ORDERS FOR CHEAPER MODEL 3
Tesla is now taking orders for its mid-range Model 3, which boasts a range of 260-miles and a starting price of $45,000. This is a version of its long-range 75 kWh battery pack with a few cells removed. But the price is still well short of the $35,000 version it’s promised since before the first Model 3 even rolled off the production line. And here’s our Autoline Insight, it’s going to be a while longer before we see the entry-level Model 3. Elon Musk went as far to say on Twitter that with federal and California tax rebates the mid-range model costs $35,000.

CONTI DEVELOPS NEW WHEEL CONCEPT
Continental developed what it calls the New Wheel Concept which is a wheel-tire-brake system designed for electric vehicles and ride sharing. Regular steel brake discs used in EVs have an issue with corrosion thanks to regenerative braking, since the pads don’t wipe the rotors as often. So Conti uses an aluminum brake disc which reduces corrosion. And since the discs don’t wear down as fast, particulate emissions from the pads are reduced. The New Wheel Concept uses smaller brake calipers, which helps lower cost and frees up more space. And it doesn’t weigh as much, which lowers the cost of ownership since it doesn’t need to be serviced as frequently.

Stop/start systems save gasoline. And if you’ve got a Hemi you’ll be surprised at how much they can save.

FCA’S eTORQUE SYSTEM FUEL SAVINGS
On Autoline This Week we’re joined by Brian Spohn from FCA Powertrain, who is the father of its 48 volt mild hybrid system called eTorque, which is available in the Ram 1500 and Jeep Wrangler. In the following clip, he discusses how its start/stop system is able to save a surprising amount of fuel.

(Clip from ATW # can only be viewed in the video version of today’s show.)

For a deeper dive into eTorque system, you can watch that entire episode right now on our website, Autoline.tv or just look for it on our YouTube channel.
But that’s it for today, thanks for watching, have a great weekend and we’ll see you again on Monday.