AD #2485 – GM’s Massive Restructuring Plan, Rivian Reveals Its First EV, Mercedes Adds Human Element to Autonomy

On today’s show… we detail GM’s massive restructuring plan… a few highlights ahead of the LA auto show… and Mercedes adds a human element to autonomy. All that and more coming right up on Autoline Daily.

This is Autoline Daily the voice of the automotive industry.

GM’S MASSIVE RESTRUCTURING PLAN
After we “went to press” yesterday, General Motors announced a massive restructuring plan for North America. In addition to the plant closing in Oshawa, Canada, the company is halting production at its Lordstown, Ohio and Detroit-Hamtramck plants next year. Production at two powertrain facilities is also being halted, and it will close two unidentified plants outside of North America by the end of next year as well. GM also is taking steps to reduce its salaried workforce by 15% or about 8,000 jobs and that includes 25% fewer executives to help streamline decision making. General Motors says these moves will help it improve its free cash flow by $6 billion by the end of 2020. But that’s not all the cuts GM made yesterday. It’s also axing the Cadillac XTS, Buick LaCrosse, along with the Chevrolet Volt, Cruze, and Impala from its lineup. It’s not too surprising the company is killing those models, all of them are down by double digits this year. Plus, consumers continue to snap up trucks and SUVs over passenger cars, which only account for 30% of sales this year.

GM’S POWERFUL BARGAINING CHIP
Here’s our Autoline Insight. GM didn’t say it was permanently closing those plants. It said they did not have product allocated to them after 2019. That is a clear signal to the UAW and the Canadian union Unifor that GM is ready to bargain with them to keep those plants open. GM is going to launch a line-up of electric cars and those plants could be perfect to build them. But it will want labor cost cuts, such as using a higher percentage of entry level workers who earn lower wages. GM’s labor contract with the UAW expires next year and these plants will stop making cars and transmissions just before those negotiations begin. And that is going to give GM a powerful bargaining chip when it sits down across the table from the UAW.

FCA CONSIDERS SELLING ROBOTICS UNIT
Last month, FCA sold its parts business, Magneti Marelli, to Japanese supplier Calsonic Kansei, for a whopping $7.1 billion. And now FCA is looking to unload another subsidiary. Bloomberg reports that it’s considering selling its Robotics unit, Comau and wants up to $2.3 billion for it. The sales process could start next year but no final decisions have been made. By shedding its non-core businesses, it will allow the company to focus on building and selling cars.

The LA Auto Show just got under way and we’ll look at some of the early reveals right after this.

FIAT 500X GETS A FACE LIFT
The LA auto show is under way and here’s a little taste of what you’ll see. Fiat introduced an updated version of the 500X. You’ll notice a slight massage to the lower portion of the front and rear bumpers. The interior receives minor changes as well. An all-new turbocharged 1.3L, which produces 177-horsepower and 210 lb-ft of torque is now standard in the crossover. Also standard are a 9-speed automatic transmission and all-wheel drive. The 2019 Fiat 500X goes on sale in the spring for under $26,000 including destination charges.

RIVIAN DEBUTS FIRST VEHICLE
If you’ve never heard of Rivian, get ready because you’re about to hear that name a lot more. It’s a new EV startup that introduced its first vehicle, a pickup truck, called the R1T. Power comes from 4 electric motors with each putting out 147 kWs. There will be three battery sizes: 105, 135 and 180 kWh. Those will yield ranges of 230, 300 and 400-miles, respectively. Payload comes in over 1750-pounds and towing capacity is rated at about 11,000-pounds. Those are pretty impressive numbers, but now we want to see it in the real world. Rivian has purchased the old Mitsubishi plant in Normal, Illinois and says the truck, which starts at $69,000 will come out in late 2020.

Coming up next, Volvo Trucks is using autonomous vehicles to help with mining limestone.

VOLVO MINES LIMESTONE WITH NO DRIVER
We’ve shown you autonomous technology from Volvo Trucks, that is helping with tasks like harvesting sugar cane and collecting garbage. And now the company is demonstrating how its self-driving tech can be used for mining. It’s working with Bronnoy Kalk in Norway to transport limestone along a 5 kilometer or 3-mile route, from the mine to a crusher where it can then be shipped. Six Volvo FH trucks are being used but the mining company doesn’t own the trucks, instead it buys a hub-to-hub transport service and pays per metric ton of limestone delivered. Volvo Trucks is taking responsibility for transporting the limestone. Currently this is just a test but by the end of next year it will be fully operational.

MERCEDES ADDS HUMAN ELEMENT TO AUTONOMY
But that kind of autonomy is more simple. Out in the real world, autonomous vehicles will experience much more complex situations and Mercedes is taking a rather human approach for how its AVs will communicate with pedestrians and other road users. Lights mounted in different areas of the car, like the windshield, grille, headlamps, mirrors and lower area of the windows indicate a number of actions the vehicle will make in autonomous mode. For example, slow or fast flashing tells people the car is braking or taking off. But here’s where the human element comes in. Lights on the roof will follow the movement of people to the side and in front of the car to signal that it “sees” them, like a driver making eye contact with someone. Or if it’s parked at the side of the road and about to take off, the lights will signal, then the mirrors flip out, then the rear suspension raises and finally the front comes up, almost like a person waking up and stretching. There will certainly be regulations for how autonomous cars communicate their intent, but for now we’re seeing developers trying a number of different things to see what works and what doesn’t.

But that’s it for today, thanks for watching and we’ll see you again tomorrow.