AD #2461 – Hyundai-Kia Test Exoskeletons, FCA Gets $7 Billion Payoff, Engine Displacement Continues to Shrink

On today’s show…Elon Musk says the hyperloop will give free rides in just two months…engines keep getting smaller…and FCA just hit a $7 billion jackpot. All that and more coming right up on Autoline Daily.

This is Autoline Daily the voice of the automotive industry.

MUSK HYPES THE HYPERLOOP
Elon Musk says his hyperloop test tunnel will open on December 10, and that he will give free rides to the public the next day. The test site is located in Hawthorne, California, just south of Los Angeles. Speeds will be limited to 155 miles an hour, far short of the 750 miles an hour that is the target when it goes into operation. No doubt this will all play into the Elon Musk mystique that could drive up the price of Tesla stock, even though this has nothing to do with Tesla.

ENGINE DISPLACEMENT CONTINUES TO SHRINK
The engines in cars and trucks in the U.S. keep getting smaller, thanks to downsizing and turbocharging. WardsAuto reports that the average engine displacement last year was 2.9 liters. But by 2025 it will be 2.6 liters. That’s for all light vehicles. Passenger cars will have an average of 2.1 liters, while trucks will have an average of 2.8 liters, down from 3.2 today.

GEARHEADS TALK FLATHEADS
Speaking of engines, we took a trip down memory lane on Autoline After Hours to take a deep dive into the Ford flathead V8. It wasn’t the first V8 put into production but we talked about what made it innovative.

(The AAH preview is only available in the video version of today’s show.)

You can watch that entire show right now on our website, Autoline.tv or you can find it on our YouTube channel.

Coming up next, we just saw one of the best races in the Formula One season.

RAIKKONEN ENDS F1 DROUGHT
In racing news over the weekend, Formula One fans were treated to one of the best races of the season at the U.S. Grand Prix in Austin, Texas. Different team strategies and some terrific driving created a nail-biter of a finish that saw Kimi Raikkonen take the win in his Ferrari. It was the first time in five years that the 39-year old Finn won a Grand Prix. Second place went to Max Verstappen who started 18th on the grid in his Renault-powered Red Bull. Lewis Hamilton took his Mercedes to third place, but failed to sew up the championship. His battle with Ferrari’s Sebastian Vettel will continue for at least another race.

CHASE WINS ONE IN THE CHASE
In the NASCAR cup race, Chase Elliott pulled out a win in his Chevrolet Camaro at the Kansas Speedway. Kyle Busch finished second in a Toyota Camry, while Kyle Larson finished third in another Camaro. Even so, Larson was eliminated from the Chase, what NASCAR also calls the playoffs, as were Brad Keselowski, Ryan Blaney, and Alex Bowman.

HYUNDAI-KIA TEST EXOSKELETONS
A number of automakers have started testing exoskeletons for their factory workers recently. And now Hyundai and Kia are the latest. They will start testing them at their North American plants at the end of the year. The devices, which the workers wear, help reduce stress and fatigue and that should help prevent injuries from repetitive motions.

Coming up next, FCA just hit the jackpot. It was better than winning the lottery.

FCA GETS $7 BILLION PAYOFF
FCA just earned itself a big, fat payday. It finally sold off its parts division, Magneti Marelli to Japanese supplied Calsonic Kansei. FCA sold it for a whopping $7.1 billion. This is the first major deal made by new CEO Mike Manley, and it shows he’s a shrewd negotiator because the late CEO Sergio Marchionne wasn’t able to get the deal done. Magneti will still supply parts to FCA and its headquarters will remain in Italy.

NORTH AMERICAN PRODUCTION GROWS
Are automakers bullish about sales in North America? They boosted production in the third quarter, not by much, just 1.3%. But that says they think the market is still very healthy. Not unexpectedly, passenger cars dropped while truck production grew. Another reason production grew is that Volvo started producing S60’s at its new plant in South Carolina, though the numbers are still small. Even so, as production grows, so do sales. Because every vehicle that gets built, gets sold. They don’t disassemble them at the end of the year and send the parts back to the suppliers.

But that’s it for today, thanks for watching and please join us again tomorrow.