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Runtime: 8:14
0:07 Chevy Unveils C8 Corvette Stingray
3:15 Best Performing Automotive Stocks
4:02 Hyundai’s Active Shift Control Technology
4:47 Minivan Sales Slump
5:47 BMW Names New CEO
6:09 Price of Rhodium Skyrockets
6:41 Toyota Partners with BYD On BEVs
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This is Autoline Daily reporting on the global automotive industry.
CHEVY UNVEILS C8 CORVETTE STINGRAY
Chevrolet unveiled the all-new, mid-engine C8 Corvette Stingray last night in a mega media extravaganza. Chevy says the previous front-engine layout had reached the pinnacle of its performance limits. Hence, the new mid-engine layout. While it’s a radical departure from the C7, Mike Simcoe, the head of GM design, took a moment at the reveal to talk with Autoline After Hours co-host Gary Vasilash about how his design team still made the C8 look like a Corvette.
(The Mike Simcoe interview is only available in the video version of today’s show.)
If you’d like to watch that entire interview with Mike Simcoe, it’s up right now on our YouTube channel. But let’s get to some other C8 highlights. It’s made from mostly aluminum, carbon-fiber and fiberglass. It will come in both left- and right-hand drive. Under the boot is a 6.2L V8 that makes nearly 500-horsepower and 470 lb-ft of torque. That gets mated to an 8-speed DCT, which will help return a 0-60 time of under 3-seconds. The mid-engine ‘Vette goes into production late this year and will have a starting price of under $60,000. All that and it still fits two golf bags.
BEST PERFORMING AUTOMOTIVE STOCKS
The auto industry is generally not seen as a hot place to invest your money, but Merrill Lynch identified five automotive stocks that have delivered eye-popping returns this year. And surprisingly they are mostly automotive retailers. Sonic Automotive is at the top of the list. Its stock is up 67% this year. Group 1 Automotive, another retailer is up 52%, Adient, a seating supplier is up 38%, CarMax is up 37% and Lithia Motors, yet another retailer is up 32%. By the way, these returns do not include any dividends these stocks may have paid out, so in some cases the returns are even higher.
| BEST PERFORMING AUTO STOCKS YTD 2019 | |
|---|---|
| Sonic Automotive | +67% |
| Group 1 Automotive | +52% |
| Adient | +38% |
| CarMax | +37% |
| Lithia Motors | +32% |
| Source: Merrill Lynch | |
HYUNDAI’S ACTIVE SHIFT CONTROL TECHNOLOGY
Hybrids deliver much better fuel economy than non-hybrid cars, but one of the drawbacks is that hybrids can feel kind of mushy when you drive them, not crisp and responsive. But maybe Hyundai is on its way to solving that with a technology it’s calling Active Shift Control. It uses a sensor inside the hybrid’s electric motor to match the rotational speed of the engine with the rotational speed of the transmission. That cuts shift times by 30%. Hyundai says it not only improves acceleration, fuel economy and durability, it’s more fun to drive. Active Shift Control will debut on the upcoming Sonata hybrid and will then spread to other Hyundai and Kia hybrids.
MINIVAN SALES SLUMP
Passenger cars are not the only types of vehicles that are losing sales in the U.S. market. So are minivans. They’re down almost 16% so far this year, which is way more than the rest of the market. Sales of the Dodge Caravan are down sharply, but it’s still the best-selling minivan by far. Then there’s a close grouping between the Chrysler Pacifica, Honda Odyssey and Toyota Sienna, while the Kia Sedona pulls up the rear. The car companies that make these minivans have been hoping that as the millennial generation marries and has children, that minivan sales would make a comeback. But so far that isn’t happening.
| U.S. MINIVAN SALES H1 2019 | ||
|---|---|---|
| Dodge Caravan | 71,900 | -17% |
| Chrysler Pacifica | 48,500 | -23% |
| Honda Odyssey | 47,500 | -7.3% |
| Toyota Sienna | 41,000 | -10.6% |
| Kia Sedona | 7,800 | -25% |
| Source: Wards Intelligence | ||
BMW NAMES NEW CEO
A little over a week after Harald Krueger stepped down as CEO of BMW, the automaker named a new leader. Oliver Zipse, will take over as the chairman of the board of management, which is the equivalent of a CEO title. Zipse has been with BMW since 1991 and his background includes manufacturing and corporate planning.
PRICE OF RHODIUM SKYROCKETS
The price of Rhodium, a key metal used in catalytic converters, is skyrocketing. Reuters reports that an ounce of Rhodium cost $615 in 2016 but now it’s over $3,500 an ounce, and that’s up $1,000 since mid-February. Stricter environmental regulations are forcing automakers to buy more and more of the metal to help curb emissions. And automakers account for 85% of rhodium demand.
TOYOTA PARTNERS WITH BYD ON BEVs
Earlier this week, Toyota formed a partnership with Chinese battery maker CATL and now it’s teaming up with China’s BYD to collaborate on battery electric vehicles. They will develop sedans and low floor SUVs as well as the batteries. The vehicles will be sold under the Toyota brand and launch in China in the first half of the 2020s. It sure is fascinating to see Toyota make such a big push into China. Earlier this decade, the company’s sales plummeted after a dispute between China and Japan over some islands in the south China sea. But now Toyota and Honda are two of the fastest growing automakers in China. And by teaming up with CATL and BYD, it appears Toyota is trying to integrate itself into the Chinese auto industry to insulate itself from any possible retaliation in the future.
That wraps up today’s show. Have a great weekend and we’ll see you right back here again on Monday.
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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.
