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0:07 Strike at GM Looks More Likely
0:50 GM Lost Market Share w/o CMO
2:26 Range Revealed for Ford’s Mustang-Inspired EV
3:06 Nissan Shows U.S. Dealers IMx-Inspired EV
3:29 AutoNation Dropping More Nissan Stores
4:34 Volvo Adds XC40 PHEV to Lineup
5:31 Car Ownership Getting More Expensive
This is Autoline Daily reporting on all aspects of the global automotive industry.
STRIKE AT GM LOOKS MORE LIKELY
Another day, another step closer to a strike. It’s increasingly looking like the UAW will go out on strike against General Motors when it’s labor contract expires just before midnight on Saturday. The rank and file are angry with union leaders over corruption charges that resulted in 9 convictions so far. Many of them feel their leadership has been too cozy with the car companies. They want more job security, higher wages and no concessions on their health benefits. Meanwhile GM wants to lower its labor costs which are the highest in North America. Some labor experts believe a strike could last at least a couple of weeks.
WITHOUT A CMO, GM LOST MARKET SHARE
Speaking of GM, last week we reported that Deborah Wahl was named GM’s Chief Marketing Officer, the first one it’s had since 2012. That’s when Joel Ewanick, the former CMO, was unceremoniously pushed out the door. Joel was doing a pretty good job. In 2012 GM had 18% market share in the U.S. But without a CMO in place, GM steadily lost market share despite coming out with a lot of good products. So far this year, GM is at 16.9% market share. If it was back at 18%, GM would be selling nearly 190,000 more vehicles this year.
|GM U.S. Market Share|
RALPH GILLES ON AUTOLINE AFTER HOURS
We have a terrific Autoline After Hours coming up this afternoon. Ralph Gilles, the head of design at FCA is our guest, and he has some fascinating insights regarding the future of automotive design.Craig Cole from Autoguide and Lindsay Brooke from SAE Engineering will also join us for the show. BTW, you can submit questions to Ralph Gilles. Just send them to email@example.com. And you can catch all the action on our website or YouTube channel at 3 pm eastern time.
MORE DETAILS ON FORD’S MUSTANG INSPIRED EV
Ford revealed one of the key details about that Mustang-inspired electric CUV that’s coming out next year. Ford says it will have an expected range of up to 600 kilometers or roughly 370 miles on a charge. Since this info came out of Ford of Europe we’re assuming that’s based on Europe’s WLTP, which we calculate will translate into about 330 EPA miles. That’s a pretty significant range and we also calculate that it will have a fairly large battery pack, probably around 82 kilowatt hours.
NISSAN DEALERS SHOWN NEW EV
In other EV news, Automotive News says that Nissan showed its U.S. dealers an electric crossover loosely based on the IMx concept. The dealers say it’s a 5-seater with a 300 mile range and can do 0 to 60 in under 5-seconds. The EV is expected to launch in the second half of 2021.
AUTONATION DROPPING MORE NISSAN STORES
Speaking of Nissan, Cheryl Miller, the chief executive officer of AutoNation, does not like what shes sees at the automaker. Nissan uses what is called stair-step incentives with its dealers. They get rebates from Nissan based on a quota of how many cars they have to sell. If they hit their quota they get a pile of money. If they miss it, they get nothing. So at the end of the month, dealers discount like crazy to move the metal to hit their quota. Cheryl Miller tells Bloomberg that consumers hate the system. “If I draw the lucky straw, and I get the incentive, my vehicle costs $5,000 less than my neighbor’s vehicle. How does that feel from a brand perspective?,” she asks. As a result, AutoNation is reducing the number of Nissan stores that it operates.
MORE DETAILS ON VOLVO XC40 PHEV
Volvo said it would electrify its entire lineup by the end of the year and now it’s showing off the plug-in hybrid version of the XC40. A 1.5L 3-cylinder gasoline engine combines with a single electric motor for a total output of 262-horsepower. A 10.7 kWh battery pack returns over 28 electric miles. It’s only available in front-wheel drive, it comes standard with a new 7-speed automatic and will do 0 to 60 in roughly 7.3-seconds. Based on initial WLTP data the crossover emits 38 grams of C02 per kilometer and has a combined fuel economy of up to 141 miles to the gallon. The XC40 PHEV starts at nearly 41,000 pounds or roughly $50,000 and UK deliveries start in February.
CAR OWNERSHIP GETTING MORE EXPENSIVE
Owning a car got a lot more expensive this year in the U.S. The AAA reports that the average annual cost of owning a new car hit $9,282, or $773.50 a month. Gas prices, maintenance costs, taxes, titles and fees, and MSRPs have all gone up, but the AAA says financing costs account for more than 40% of the total increase. The Fed is expected to cut interest rates so maybe that will go down. The Auto club says 72 month car loans are becoming common, and every 12 months added to a loan adds another $1,000 in financing charges.
And that’s it for today’s report, please join us again tomorrow.
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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.