AD #2567 – Ghosn Tossed Back in Jail, Fewer Open Recalls on the Road, Ford Gives China Operations More Autonomy

This is Autoline Daily reporting on the global automotive industry.

GHOSN TOSSED BACK IN JAIL
Carlos Ghosn is behind bars again. He was re-arrested by Japanese prosecutors on new charges that he tried to enrich himself at Nissan’s expense. They say Ghosn funneled millions of Nissan’s dollars through an intermediary for his own personal gain. Prosecutors claim the former chairman and CEO is a flight risk and could destroy evidence. Ghosn says he’s innocent and called the latest arrest outrageous. He is also asking the French government for help. This is the fourth time Nissan’s former CEO has been arrested but these latest charges are the most serious yet.

ELON MUSK HEADED TO COURT
But Carlos Ghosn isn’t the only auto executive in trouble with the law. Later today, Tesla CEO, Elon Musk will appear in court over violating an agreement with the Securities and Exchange Commission. Last year, Musk reached a settlement with the SEC to not publicly post information about Tesla without approval from the company. The SEC alleges Musk violated the agreement when he tweeted that Tesla would build 500,000 vehicles this year. Musk says he did not violate the agreement and should not be held in contempt. Elon faces even more fines or possible removal from Tesla. But we think it’s unlikely he’ll receive a harsh penalty.

And speaking of Tesla, we’ve got a great Autoline After Hours coming up this afternoon with Sandy Munro. He’ll be talking about the Chinese version of the Model 3. We’re also going to get him talking about Tesla’s new assembly plant in China. Can they really get it launched this year? And what about all those Chinese car companies selling electric cars. Can they really make any money on them? So join john and Gary and Frank Markus from Motor Trend when we go live at 3 pm eastern time.

FEWER OPEN RECALLS ON THE ROAD
Car recalls are kind of like a summons for jury duty…the public largely ignores them. But as far as recalls go, the problem is getting better. According to Carfax, there are more than 52 million vehicles on the road in the U.S. that have an open recall. That’s about one out of every five cars, which is a lot but that’s down from 63 million in 2017.

NHTSA HEAD NOMINEE CLEARS HURDLE
And speaking of safety, President Trump’s nomination for head of the National Highway Traffic Safety Administration, just cleared a hurdle for approval. A Senate panel just voted in favor of appointing Heidi King to lead the agency. Trump nominated King in April of last year but her approval was held up due to concerns from safety advocates. She still needs to be approved by the full Senate but with Republicans controlling a majority of the chamber, we expect the nomination to go through.

ANOTHER BARN FIND IN URUGUAY
Here’s another great old car we ran across parked on the street in Colonia, Uruguay. Anyone hazard to guess what it is? Just post your guess in the comments section and we’ll announce who got it right.

LINCOLN AVIATOR FEATURES 3D SOUND SYSTEM
You may remember that Lincoln teamed up with the Detroit Symphony Orchestra to create the different chimes in the new Aviator and the vehicle will also feature an all-new audio system that’s said to make you feel like you’re right in the middle of a concert hall. The Revel Ultima 3D system has a total of 28 speakers, including 4 sets in the headliner, that allows the music to envelop the passengers in the cabin. There are three different listening modes to choose from as well as a sliding control in the center stack that determines how much or how little you want to be immersed in the sound experience. Brandon Wheeler, the manager of customer acoustics at Revel and former ATW guest, says he can almost guarantee you’ll get goosebumps the first time you hear it.

FORD OF CHINA GRILLES THE NEW ESCAPE
Ford is giving its operations in China a lot more autonomy. That includes setting up a new design center in China. One of the first changes that Ford is bragging about is a new grille that was designed in China for the Titanium edition of the new Ford Escape. Ford calls it the “Nebula Shield.” It has a hexagonal mesh with a chrome finish and black highlights, and it’s somewhat bigger than the standard grille. We think the Chinese version definitely looks more upscale than the base version. What do you think?

FORD ELECTRIFIES ITS EUROPEAN LINEUP
And speaking of Ford, it’s electrifying more of its lineup in Europe. Like the U.S. Escape, its twin, the Kuga will as well feature mild-, full- and plug-in hybrid powertrains. The Explorer is also going the plug-in route with a 3.0L turbo V6, electric motor and battery that provides about 25-miles of pure electric driving. As is the Tourneo Custom van. It’s front wheels are driven exclusively by an electric motor/generator, which is mated to a 1.0L EcoBoost 3-cylinder range extender and 13.6 kWh battery pack. Ford is aiming for pure battery range of 31-miles and about 310-miles of total range with the range extender. As it looks to the future, Ford will offer an all-electric version of the Transit van in 2021 and it teased the all-new Puma small crossover that will feature a 48-volt mild-hybrid system.

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