AD #1842 – NLRB Ruling Opens Door for UAW, VW to Drop Beetle in 2018, Lincoln Aggressively Prices New Continental
April 14th, 2016 at 11:53am
Runtime: 7:27
To watch this episode on YouTube click here.
- UAW Could Organize VW Tennessee Plant
- VW to Drop Beetle in 2018
- Chinese Video Game Company to Develop EV
- Lincoln Reveals New Continental Pricing
- Delphi Solves Apple CarPlay Problem
- Adaptive Valve Cuts Muffler Weight
- Bosch Wants to Make Parking Easier
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On today’s show… the UAW scores a big victory in its attempt to organize VW’s Tennessee plant, Lincoln aggressively prices the new Continental and Volkswagen decides to squash the Beetle. All that and more coming right up on Autoline Daily.
This is Autoline Daily for April 14th, 2016.
NLRB RULING OPENS DOOR FOR UAW
The UAW just won a big victory in its efforts to represent Volkswagen workers in Chattanooga, Tennessee. The National Labor Relations Board just rejected VW’s appeal that skilled-trades workers at the plant can’t organize separately from other workers. The ruling means that the skilled-trades workers can have a voice in labor decisions through “works councils” which are used in just about every VW factory outside of the U.S. to represent employees. But more importantly for the UAW, it opens the door for it to organize the whole plant. The NLRB sided with employees because the automaker failed to prove that both sets of workers would be better off represented together rather than separately.
THE BEETLE GETS SQUASHED
And speaking of Volkswagen, its most iconic model, the Beetle, will get axed at the end of 2018, according to AutoForecast Solutions. Sales dropped off steeply in the last two years. In 2013 VW built 109,000 Beetles. Last year it only built 64,000. Sales are primarily in the U.S. market, the current generation never caught on elsewhere in the world. And in the U.S. market 2-door cars do not sell that well. Volkswagen will replace the Beetle at its assembly plant in Puebla, Mexico with the Tiguan, and as you all know VW needs more crossovers.
WHO’S NEXT? PLAYSTATION?
We’re all familiar with Apple and Google’s forays into the auto industry. But Chinese tech firms are also interested in developing cars. Baidu, which operates China’s largest search engine, recently announced plans to develop autonomous cars. And now Youzu, which makes video games for mobile devices, wants to develop an electric car. Bloomberg reports that the company is close to finalizing a deal with a partner to build an electric SUV for sale in 2018. Youzu is jumping into the auto industry now because it believes there will be a big market for video games and other entertainment to be used in autonomous cars in the future.
And we’ll be back with more right after this.
LINCOLN SETS AGGRESSIVE CONTINENTAL PRICE
Lincoln is getting aggressive with its pricing for the new Continental. The base Premiere model with a 3.7L V6 engine starts at $45,500 including destination charges. There are 3 trim levels above the Premiere. The two mid-range trims are called Select and Reserve and then there’s the top-of-the-line Black Label, which starts out at about $64,000. Those prices are well below Cadillac’s new CT6 and more in line with the Audi A6. Other options include a 2.7L EcoBoost V6, 3.0L twin-turbo V6 and a host of safety and convenience packages. With every option box checked, the Continental can top out at over $82,000. Even so, this pricing is sure to turn a few heads. The question that remains is just how many will it turn?
DELPHI SOLVES APPLE CARPLAY PROBLEM
Apple’s CarPlay seems to be showing up in every new car coming out, but there’s still a problem. Once the iPhone is plugged into the USB port it wants to act as the sole “host” device, preventing access to other devices. Well Delphi has solved that problem with what it calls Dual Role Hub. The unit allows the car radio and iPhone to be recognized as “host” devices simultaneously. So, users can have their personal content replicated in the vehicle while also allowing other passengers to use their content at the same time from a different device. Others offer similar devices, but Delphi says those are expensive, have limited functions and take up a lot more space. Automakers seem to be taking notice. Delphi is the sole source of media module hubs in every mid- and high-level infotainment system for GM globally for model year 2015 and says it will be in more than 40 percent of all GM, Ford and Chrysler products globally next year.
And don’t forget to join us for Autoline After Hours later today. We’ll have the chief engineer of the all-new Toyota Mirai. So, if you have any questions about that car send them to [email protected]. Then join us at 3PM eastern time for some of the best insider discussion in the business.
Coming up next, a couple of suppliers show off their solutions for lightweighting and searching for a parking space.
ADAPTIVE VALVE CUTS MUFFLER WEIGHT
Back in February we showed you how supplier Faurecia is working on lightweighting exhaust systems and here’s another solution from the company. This time around it’s aiming to reduce the size of mufflers with an adaptive valve. It’s a self-adjusting valve located just in front of the muffler that’s activated by the flow of exhaust gas. It reduces low frequency exhaust noise at idle and cruising speeds and can even imitate the sound of sport vehicles when the engine is turning at high RPM. At Idle Faurecia says the customer may not even realize the engine is running. With the adaptive valve, total muffler weight can be cut in half.
BOSCH WANTS TO MAKE PARKING EASIER
And in other supplier news, Bosch is looking to simplify the way we park. One way is to install occupancy sensors in parking lots or garages to detect and report empty spaces. The other is to use sensors located on other cars out on the road to search for parking spots on the street. This information is then combined in the Bosch IoT Cloud to generate digital maps of parking spaces, so drivers can use their smartphone or navigation to find an open spot near them. Not only would this reduce traffic but it would also cut down on fuel consumption and emissions.
But that wraps up today’s show, thanks for watching and please join us again tomorrow for the latest news in the global automotive industry.
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Comments (26)
April 14th, 2016 at 12:17 pm
Cleveland Ohio’s Airport parking garage has an occupancy sensor for each parking spot with a red light for occupied or a green light for open. It works well and it makes your search for a spot a lot easier.
April 14th, 2016 at 12:19 pm
VW is going to axe the Beetle??? Big deal, so what are they going to axe it?….. oh sorry, you mean AXE it. Thought maybe that was a little American slang
April 14th, 2016 at 12:28 pm
If the base Continental has proper luxury trappings at that 45.5K base price, it should do well, but I suppose the base car will have vinyl seats, and it will take a $5K package to get leather. We should know soon.
April 14th, 2016 at 1:06 pm
Maybe VW should rename the Tiguan (what a bad name ) to something like the Beetle XL or something with more identity.
April 14th, 2016 at 1:13 pm
Thanks, Sean. Very informative.
April 14th, 2016 at 1:16 pm
Detroit’s Motor City casino has had the parking sensor technology I believe for 17 years, it was built in (1999).
Requiring businesses to provide a percentage of parking for their new construction will house also would reduce emissions and increase interest in downtown activity. Many people avoid patronizing downtown businesses because they don’t know where to park and don’t want to deal with trying to find a space. When parking is easy at a reasonable cost people will come.
April 14th, 2016 at 1:18 pm
Adaptive Valve is just like the “Snuffs” we put on motor cycles in the 1960′s. Cut the muffler(s) off the bike and drill a 1/4 hole about 1 inch into the pipe and install the snuffs – a washer the size of 1 silver dollar with a hole in it the size of a dime. The snuff had a tab tack welded to it that went through the 1/4 hole; a spring, bent washer and cotter key held the snuff outside the exhaust pipe. One quarter turn of the snuff had the washer partially blocking the exhaust and things nice and quiet. Another quarter turn gave straight pipes with no mufflers and the sound of all hell and thunder breaking loose with 4 stroke engine bikes.
April 14th, 2016 at 1:22 pm
#3 Apparently that leather package must be more like 10k. No way a loaded version of that Lincoln or anything else should double in price with options.
So basically I can go buy two base versions of the car for the price of a fully loaded one..?
Not to mention I would expect even a base model Lincoln to have power everything A/C and an infotainment system. I don’t see the value in the premium model.
April 14th, 2016 at 1:56 pm
when I was early in the trade , some 50 years ago, There was an adapter valve in an exhaust system . All I really remember was removing a number of them because they malfunctioned & caused too much back pressure
April 14th, 2016 at 1:58 pm
To compare the Continental with the CT6 is pure blasphemy! The Continental looks too much like a long version of the Fusion which is exactly what it is.
April 14th, 2016 at 2:05 pm
I’m guessing the Continental will somewhat go with the Mercedes playbook on optioning. “Keyless Go,” combined with an electric trunk closer is a $900 option on an E-Class, and leather seats are ~$2000-3000, depending on the color/style. I suspect Lincoln will do similar packaging. Also, the turbo engines will no doubt add a lot to the price, and will probably be packaged with other things.
There are things that should be standard on a $55K Corvette that are part of packages, including home link and auto dimming mirrors. I forwent those items, but leather and “keyless go” were standard on my near-zero-option car.
The Continental will be to the Fusion, what the Town Car was to the Grand Marquis, stretched, with a much nicer interior, and different, more “elegant” styling.
April 14th, 2016 at 2:35 pm
The “new” Beetle was much improved over the past generation it is a shame to see it go. With almost no promotion or advertising is it any wonder sales have dropped so low.
April 14th, 2016 at 2:37 pm
The Continental will offer an alternative luxury car, but option per option, will have to be evaluated (after introduction and published) to see if the lower priced Lincoln is the equal to the Caddy; I’m thinking on a cost basis, they may be a lot closer than appearances would seem. You can ‘build your own’ on the Cadillac website, until this is available for Lincoln, numbers will remain nebulous.
April 14th, 2016 at 2:38 pm
Dealership service departments still have a long way to go for customer service. Took 3 trips to get a timing belt done correctly, which didn’t require diagnosis.
April 14th, 2016 at 2:38 pm
11 The TDI fiasco wouldn’t have helped the new new Beetle. The TDI was available, even in the convertible, and that market is now gone. I haven’t heard when, if ever, the 2.0 TDI will return to the U.S. market.
April 14th, 2016 at 2:42 pm
In looking at the Continental press release leather looks to be standard as it is on the CT6. Cadillac only offered “leatherette” on the base 4 door ATS. The base Continentals will most likely be a complete auto in terms of accessories that people really need. Most of the features on the base car would have been options 10-15 years ago. The big ticket items are the for people with money to burn. I’m just trying to imagine how in the world you adjust a seat 30 different ways…
April 14th, 2016 at 3:41 pm
If the base Continental has leather, home link, keyless start, the usual power gadgets it would almost certainly have, and has cabin decor fitting of a “luxury” car, it sounds like a good value. If it is quiet, comfortable, and rides well, most potential buyers won’t care that the chassis is closely related to a Fusion.
April 14th, 2016 at 4:08 pm
Will Lincoln offer a unique model for airport limo use? Seems like a good way to sell a lot of units but it might devalue the model itself. Maybe a stretch version a la A8.
April 14th, 2016 at 5:05 pm
#10 – Kit – Since you don’t have homelink & auto-dimming mirrors, I trust you selected the 1LT package, which of course is your choice. I went with 2LT not for those items, however, for the PDR & HUD which I did want. At least we had the option (pun intended) to choose what we want. It is a shame that for a relatively new design that blind spot mirrors are not even available as an option.
April 14th, 2016 at 5:45 pm
18 Yep, it’s a 1LT. I would have liked homelink and auto dim mirrors, but didn’t care much about the rest of the 2LT difference, at least not $4K worth. I wish you could still get individual options, like as recently as the 1980′s, but no one does that.
April 14th, 2016 at 6:30 pm
Call me old school, but I like to know when my engine is running at idle, bragging about that would make me want to NOT have a muffler like that.
April 15th, 2016 at 7:58 am
#20 Might as well get used to it. As stop/start tech hybrid and full electric becomes more mainstream, idle will be a thing of the past. Besides why do you need to know if the car is idling? Most cars can no longer engage the starter if the car is already running like in the old days of grinding starter teeth.
April 15th, 2016 at 9:18 am
Lincoln Continental: I am a day late in responding. Smart!! Lincoln’s pricing and the demise of Mercury, gives Lincoln a broad range to satisfy Ford lovers who want to up-grade. They “kill two birds with one stone.”
When Lexus was introduced in 1990-91, they priced the LS far below the competition. As the car sold in greater numbers they gradually and quietly raised the price. With in a few years they were priced with the competition. They became a leader in the process.
Everyone wants to be with a winner! And sales is a strong measurement of who is winning. The momentum has to start somewhere, and price/value is a good beginning.
Hyundai is another example of price/value = increased sales and leadership.
Can Ford really be this smart????
April 15th, 2016 at 10:48 am
Perhaps when we compare the new Continental to the new Caddy CT6, we were comparing it to the wrong car. The XTS is the more logical choice upon reflection; the Continental is derived from a front wheel drive platform as is the XTS, then both those base models have all wheel drive available. Looking at pricing, options, ride dynamics, engines and target audiences we then see a closer comparison. IMO
April 16th, 2016 at 8:25 am
I know that this may upset some purest, but I do not understand why VW didn’t follow a route similar to BMW with Mini and Fiat with the 500, with the New Beetle! Coupes and roadsters already can be seasonal vehicles and therefore have a short shelf life. Then add to the slow visible and platform updates to the vehicle and I do not see how they thought the product would survive?! I know these thoughts may sound unforgivable, but giving it a four door and an SUV version might have given it a chance of reaching a wider audience and add more to VW’s bottom line.
April 18th, 2016 at 8:26 am
#25 Probable never read this wmb but was reading your post and I agree that other versions of the bug may have saved it for a bit.
The real problem lies with the fact that the original bug was so successful because it was cheap. “the every mans car” When they resurrected the “similar” design they brought it back and it appealed to people for the image of the good old days playing slug bug in your parents car. But it also carried a modern price if not a premium price. It was brought back as a niche vehicle. Not an affordable car for everyone like the original. Once that niche is depleted sales dive. If VW brought it back with a rear water cooled engine and sticker under 18k they would find it sell very well. IMO