Headlines for the Week for June 18th, 2018

Flying Cars to Take Off in Ingolstadt

Long time listeners may remember a few months ago I mentioned Audi’s partnership with Airbus to start developing flying cars. As a refresher, these were very loosely termed cars. Basically it’s a three-part design, with a quadcopter, passenger pod and electric skateboard-like platform. The pod can be transported by either the quadcopter or wheeled platform, making it either flying or car, but not really “flying car.” I said at the time that the idea was pretty neat and more likely to succeed than any other system I’d seen and, sure enough, Audi has just received approval from the German government to start testing these in their headquarter city in Bavaria, Ingolstadt. Now, this is a long way from being like “oh my God, we are all going to be catching flying car taxis from the airports within five years,” but it’s a lot closer than I thought we’d see in my lifetime, so I’m hoping this actually goes somewhere. Onward and upward, Audi.

Volvo’s New US Plant feat. Dig @ Trump

In a time when automotive manufacturing jobs can be hard to come by in the US, who can we trust to bring back those jobs? Yep, the Chinese and Swedes! Volvo, which is owned by Chinese company Geely, formally opened their new factory in South Carolina, which will build the new S60 we’ll get to later. In addition to providing Volvo the chance to suck up to American buyers by focusing on the $1.1 billion investment in America and the 4,000 jobs the factory will host when construction is complete, the event gave Volvo execs the chance to cast some serious shade at Donald Trump and his supporters Nikki Haley and Governor Henry McMaster. Volvo CEO Hakan Samuelsson said “If you have trade barriers and restrictions, we cannot create as many jobs as we are planning to. We want to export and if suddenly China and Europe have very high barriers, it would be impossible. Then you have to build the cars there. And then all cars will be more expensive, you have to invest more tooling and have every model in every country. That’s against all the logic of modern economies that trade with each other.” It seems there’s a lot of commentary about our trade policy being against all logic, and yet here we are, threatening a 25% tariff on imported vehicles and auto parts. It’s almost like logic doesn’t factor into decisions at all, but what do I know, I’m only a master of business with a degree in political science who happens to like his cars cheap and fast.

Audi CEO Arrested, Thrown in Slammer

^Criminal

The fallout from the Dieselgate scandal continues still in Germany where this week Audi CEO Rupert Stadler was arrested based on concealment of evidence relating to the defeat devices on Volkswagen Auto Group vehicles. He’s actually remaining in custody because the prosecution thinks he’s a flight risk. Audi has had to scramble to name an interim CEO while their boss remains a jailbird, but this just continues to look bad. If the CEO of one of your major brands was aware of the effort to deceive authorities, former Volkswagen CEO Martin Winterkorn is probably shaking in his boots because you can bet he knew about it too. It’s a serious problem when a culture of corruption comes straight from the top, and you would’ve thought Volkswagen had learned its very expensive lesson, but by keeping Stadler as Audi CEO this long after the scandal came to light, maybe they need a couple more billion dollar settlements before the root out all the corrupt jerks. I’ll take my settlement in the form of a V10 R8, thank you.

Teslupdate #1,000,000,000

This will again not be the week when we have no Tesla news, because there was some wild shit going on with Elon Musk’s company this week. First, the not-so-wild: tesla completed the setup of a third production line over the weekend...in their parking lot. Yes, the new line is underneath temporary tents outside because the space is needed that badly to ramp up production to meet goals. Back when the factory was a combined General Motors and Toyota venture, they managed to crank out 8,200 cars per week from the inside of the place, so if Tesla needs to move outdoors just to reach 5,000, I think you can imagine how much more complicated those production lines must be and how much more space they take up.

Amazing work by Tesla team. Built entire new general assembly line in 3 weeks w minimal resources. Love u guys so much! Pic of 1st Model 3 dual motor performance coming off the line … pic.twitter.com/Xr55P3fmGd

— Elon Musk (@elonmusk) June 16, 2018

Next came some serious shade thrown from General Motors. Actress Mary McCormack who you may remember from some sort of television shows somewhere, tweeted out a video of her husband’s Tesla Model S, which apparently just started catching fire while he was driving it and burst into flames in the middle of Santa Monica Boulevard. Tesla has no idea what happened or why, but GM jumped at the opportunity, offering the actress a free Chevy Bolt as a more dependable loaner car. Nicely done, GM communications guy Ray Wert.

Okay now we get to the crazy shit - on Sunday, Elon Musk sent out an email accusing a former employee of sabotage and intellectual property theft, as well as leaking sensitive information to third parties and the press. He followed that email up with another about someone potentially trying to sabotage a production line by starting a fire. Then on Tuesday Tesla filed a lawsuit against a former employee for allegedly having stolen confidential information and making false claims to the media. Then on Thursday, someone claiming to be a friend of Martin Tripp, the guy Tesla sued, called the Gigafactory to warn that Tripp was coming in to shoot up the place, causing a minor panic and for beefed up security until the county sheriff found there was no credibility to the threat. Then AFTER THAT, Tripp posted to Twitter an email exchange that he had with Musk about the lawsuit wherein they both called each other horrible human beings and generally behaved like children.

We’re not yet sure if the Sunday email and Tuesday lawsuit are connected, but if not, that means there are several people trying their darndest to mess up Elon’s life. And jeez, people if you like constant dramabombs being dropped, no need to watch daytime television, just follow Elon Musk on Twitter. This is ridiculous.

J.D. Power Initial Quality Honors Hyundai

The annual list of J.D. Power rankings for initial quality were released this week and, if you’ve been listening to this show and looking at their recent cars, you won’t be surprised to learn that Genesis, Kia and Hyundai are the top three brands. All of them being owned by Hyundai. Even Porsche comes in at just fourth spot and Ford in a somewhat unbelievable fifth. The trick is, the initial power rankings count the number of problems experienced per hundred vehicles in the first 90 days of ownership. If things are going wrong within 90 days, that’s generally not a great sign for future reliability, but certainly not a sign that cars with good initial quality will last longer, as may be the case with Ford. They also don’t measure the severity of problems, so a busted transmission is effectively the same weight as a windshield wiper motor squeaking, which is pretty misleading. Furthermore, as I’ve discussed before, automakers pay JD Power for the right to use their awards in marketing materials, so these sort of non-firsthand user reviews should be taken with a grain of salt. Nevertheless, Hyundai definitely deserves a look as they do make some pretty nice cars. Just, as with everything else, QUESTION EVERYTHING.

RC-6 Corvette

While I’ve never driven one, It’s my understanding that Corvettes are very fun cars to drive. But in the Netherlands, where people decided they’d rather have land where the sea was so they built a complex series of windmills to drive the sea back into the ocean, one man has gone and made his Corvette a bit more complex as well. Specifically, he modified his C6 Corvette to be remote controlled. We’ve seen full-sized R/C cars before, but doing so to a Corvette is an entirely different scale; one that cost about $4,000. It’s honestly really impressive that someone could pull this off, but I still think I’d rather be behind the wheel of that V8 rather than just puttering it around a parking lot. But that’s the Dutch for you - defying convention, and the ocean.

Authored by
Devlin Riggs

Header image: When your GTI is the least athletic member of your automotive family tree.

Why Can’t We Be Friends: Automotive Partnerships Pick Up

The automotive landscape is in a pretty significant state of flux right now, with sales down, tariffs up, and a trade war looming around the corner. But, driven by the ever-increasing pressure to generate value for their shareholders, automakers can’t just sit back, shrug and say, “hey, shit happens, guys.” So what we’re seeing is a dramatic uptick in the number of partnerships between automakers and investment by automakers in technology companies. The largest of these is undoubtedly Nissan-Renault-Mitsubishi partnership, heralded by Carlos Ghosn, which is an alliance, but not a single company like the Volkswagen Automotive Group, which holds Audi, Porsche, Bugatti, Skoda and others. Just by cooperating, Nissan-Renault-Mitsubishi saved a collective $6.6 billion last year alone. This is by sharing development costs of new platforms, technologies, parts, components and by their increased purchasing power, being able to buy more in bulk at a cheaper price. The alliance is basically like a membership to automotive Costco. There's been talk about this alliance becoming a merger, but Ghosn squashed those rumours this week.

And when someone says their alliance saved them almost $7 billion in a year, people start paying attention, specifically that same Volkswagen Automotive Group announced a strategic alliance this week with Ford. The details of the Memorandum of Understanding signed are pretty vague, but it sounds from the statements made like it’s an awful lot like Nissan-Renault-Mitsubishi, where they will share development costs and technology, apparently primarily for commercial vehicles. I’d say this is a win for both companies since Ford has been ahead in the hybrid game for a while and Volkswagen’s infotainment system is one of the best I’ve used in a long time, but how necessary those are for commercial vehicles is another question. I’ll go ahead and take credit for the partnership since my household has been a Ford-VW garage since February.

Volkswagen isn’t stopping with Ford though. Through their Audi brand, they are partnering with Hyundai to co-develop fuel cell vehicles. Audi has apparently been tasked with developing fuel cells for the rest of the Volkswagen Automotive Group while VW works on battery cars. Audi will start working with Hyundai’s ix35 fuel cell SUV and the forthcoming Nexo and leverage collective R&D to take their fuel cell tech to the next level. The next level, of course, being a level at which someone might want to purchase a fuel cell vehicle, which I think is probably more a matter of fueling infrastructure than car quality or availability at this point. Regardless, the partnership should save both companies a lot.

But speaking of Volkswagen running the battery game, they announced this week that they have increased their stake in QuantumScape Corporation, forming a joint venture for the purpose of producing viable solid state batteries. The goal here is to put them in production vehicles by 2025. If that sounds familiar, it’s because Toyota is doing pretty much the same thing, but on their own. Future partnership incoming? As a refresher, solid state batteries, basically pack more power and energy storage capacity into smaller packages. They said that a solid state battery could increase the range of VW’s E-Golf from its current 186 miles on lithium ion batteries to a whopping 466 miles, which would beat basically every other car out there right now. Hell, that’s more range than my GTI gets on premium gas. I may be looking at the Golf GTE come 2026 or so!

Also in the Volkswagen Automotive Group, Porsche has bought a minority stake in Rimac, makers of two electric super car models, one of which was crashed by Richard Hammond on a hill climb attempt last year. As is the case with most partnerships entered into voluntarily, both companies stand to benefit, with Porsche tapping into Rimac’s experience with electric super cars for their upcoming Taycan and future electric cars, and Rimac getting access to Porsche’s suppliers and potentially greater savings on parts from increased purchasing power.

And you know what stands out to me about these partnerships? They’re all international. Every single one. To me they show the great potential for progress when companies work together, share technology and help one another out, rather than operating in silos, shutting out the competition. The market is tough right now, and if companies are going to survive, they have to work together. And the result for us petrolheads? More choices, lower costs and better, more developed options. If only more people believed in tearing down walls, huh?

Authored by
Devlin Riggs

Headlines for the Week of May 28th, 2018

Tesla Hits Emergency Vehicle...Again

Let’s see if you’ve read this one before - A man’s driving his Tesla Model S and decides to relax a bit so he kicks on the Autopilot mode, which is working great, keeping him in the lines and evenly spaced between cars right up until the point where it runs him full speed into the back of an emergency vehicle. Oh, sounds familiar? It’s sort of becoming a thing, isn’t it? Except this time it wasn’t a firetruck, it was a Laguna Beach Police Explorer.

Photo by ABC News

The driver says autopilot was on, but we don’t know for sure yet if that was the case. What certainly is the case though, is that the driver was most definitely not fully attentive, which they are supposed to be when driving in autopilot mode because, guess what? People who are fully attentive will be driving, not letting the car do it.

It’s so widely accepted that people do not pay attention when the car is in autopilot mode that Shutterstock now has a stock video of a “sleeping” driver cruising along in a Tesla as it drives itself. This is about the time Elon Musk chirps up and howls at the media for covering another crash of his when there are millions of crashes every day. He’s not wrong here, especially since only minor injuries were sustained by the Model S’s driver in Laguna Beach. But it’s like when my mom let me have a rubber band gun when I was ten - I was given strict guidelines for how it could be used and then I went and shot my brother in the eye. I wasn’t aiming for his eye but hey, his eye got in the way of my shot. Shit happens. And guess what happened then? Yeah, my mom took away the rubber band gun. If people continue to demonstrate they cannot be trusted to use a technology the way it is designed to be used, then it’s either designed wrong or needs to be taken away until people behave. And yes, I realize this could be said about motor vehicles in general, but driving is a privilege and not a right, which the state can take away if you are truly and repeatedly bad at it! But given that Elon’s out there making my rubber band gun look lame with his flamethrowers and journalist credibility ratings services, I doubt he’ll have time to see the sense in my argument.

Tesla Gets Thumbs Up after Thumbs Very Down

After Consumer Reports knocked Tesla’s Model 3 for braking performance worse than a Ford F-150, Elon Musk first had a tantrum, then said everything could be fixed with an over-the-air firmware update, presumably to re-calibrate regenerative braking and increase the performance of the actual brakes on the vehicle. Less than a week later, out goes the update and in comes a big thumbs up from Consumer Reports, who have now bestowed their coveted “recommended” rating upon Tesla’s smallest car. I said last week that it would’ve been nice for the company to get it right the first time, but I’m probably being a little harsh, because almost no company gets their cars right the first time. Look at Ford, who has been making vehicles for a hundred years. They’ve recalled my wife’s Fusion three times now for different things. But with the Model 3, no recall is required. They just upload a fix, your car downloads it and boom, you’re good to go with better performance. It’s really honestly impressive that is even possible now, but as the owner of a phone that has been bricked by an over-the-air update, I can say it’s not a completely foolproof plan to avoid recalls. But good on Tesla for addressing a problem swiftly.

California Unveils Digital License Plates for Idiots

On the subject of California, the state unveiled new digital license plates this week, which are basically e-readers flipped on their sides that display your license number and have a GPS tracker, allowing big brother to see how often you drive past your ex’s house to see if someone new is staying over before you head back to your lonely apartment for a dinner of cheese and sadness. The plates can also display other messages, like advertisements while vehicles are parked, which is just exactly what the world needs more of. And they can be tracked if your car is stolen by a criminal stupid enough to not remove the license plate as the very first thing after actually stealing your car. They will be available for purchase through dealerships at a cost of $700, excluding installation costs and a $7 monthly subscription fee, while I’m not sure what you’re subscribing to other than the appearance of being a sucker. I could now go into how pointless and stupid this is, especially considering it goes on the most vulnerable part of your car in the event of fender benders, but I think you get the point already.

Weekend Motorsports Roundup

There was some racing going on this weekend, all over the place, starting with the Monaco Grand Prix in, well, Monaco. The famous city circuit is known for being tight and showcasing the technical skills of drivers rather than the flat-out speed of the cars and this year was no different. In fact, speed mattered so little that Daniel Ricciardo was able to win the race with a broken car down about 160 horsepower from Sebastian Vettel’s Ferrari behind him. In fact, every single driver who finished the race finished in the same position that they started after qualifying. So apart from pit stops, no real passing, which does not make for very compelling racing.

Speaking of uncompelling racing, the Indy 500 was also this weekend and it was won by Will Power, who managed to go around in circles faster than all the other drivers who went around in circles. Congratulations to fast circle man Will Power.

In more exciting racing news, the inaugural Americas Rallycross event took place this weekend in, um, not Americas. It’s taking the place of the Global Rallycross series that went belly up so it’s maybe not so surprising to see the cars racing at Silverstone in the UK. In any case, ex-German Touring Car racer Timo Scheider finished second in qualifying. Normally, second place finishers and qualifying laps aren’t notable except this one is because Timo finished it with his hood flipped up over his windshield. Stop and put it down? Ain’t nobody got time for that! Especially when every second counts and you’re going sideways so often you can just use your door windows to see where you’re going. And perhaps it’s because the course requires so much sideways driving that the winner of the actual event was Tanner Foust, former Top Gear US host who is incapable of driving in a straight line or swearing, and with whom I want to be good buddies. Congrats, Tanner!

Audi’s Bringing Cameras and Efficiency

What has been a key feature on concept cars for years may become a reality on the forthcoming Audi E-Tron. Whereas previously US law mandated that cars come equipped with side view mirrors, a revision to that regulation (we are in the age of deregulation, after all) will mean car companies can now use cameras and screens instead of glass. The advantage here is that wing mirrors generate drag that can cost electric vehicles as much as three whole miles of range, so by eliminating them, car companies can get better range out of their batteries and charge you thousands more for expensive cameras and screens instead of cheap mirrors and plastic housings. There aren’t many other advantages of cameras. Glass mirrors allow you a 3D stereoscopic view of what’s behind you, allowing for better depth perception, they don’t have screens that wash out in direct sunlight and they aren’t blinded by headlights when it’s dark. But progress, Audi will say, to which I respond, I’d rather sacrifice three miles of charge to be able to better see what’s on either side of me.

U.S. Production Update

Several companies announced new plans for U.S. production last week, some of which I’m sure a certain politician will use as evidence that his trade war threats and tariffs are paying off despite no credible evidence of a connection. First, Hyundai is investing $388 million towards building a new plant in Alabama where motors for the Sonata, Elantra and Santa Fe will be built. This of course means more jobs for hard working Americans, but at the same time, only fifty hard working Americans will be able to find new work there.

But Nissan is going the opposite direction, scaling back their North American production by 20 percent to adjust to falling profitability. Low demand has led to greater incentives and more fleet sales, which have decreased profitability for Japan’s second largest automaker. Fortunately, no employees are being let go at the two assembly plants in the US and three in Mexico, but I guess they’re going to be able to spend more time making sure all the bolts are tight on those Maximas and Rogues.

EVs Could Cost Governments Billions

Right now, many governments are investing in subsidies for electric vehicles and the infrastructure to support them, but that may not last too long because the same cars that governments want us to drive could end up costing billions in lost tax revenue. Right now, gas taxes are a huge source of funding for infrastructure support, but as EVs don’t use fuel, that revenue could dry up. The International Energy Agency estimates that, if 30 percent of new car and truck sales by 2030 are electric (which is hugely ambitious), governments worldwide could be missing $92 billion in tax revenue. Obviously that’s going to have to be made up somehow, whether through distance driven taxes or maybe via our electric bills. Otherwise those potholes and crumbling bridges will never be replaced.

Cars are Too Expensive

A new report by CNBC has revealed that the average monthly payment for a new vehicle is a whopping $523, in addition to the fact that loan terms extending as far as 96 months, or eight years, is becoming far more common. Average length is around 67 months, so somewhere in between five and six years, and the total amount borrowed for vehicles rests at around $31,500. All of these numbers represent unprecedented highs, which is a problem considering interest rates are increasing, averaging now 5.17 percent on new vehicle loans. It’s even more of a problem when you consider that, according to my buddy Chuck at the Federal Reserve, the average disposable personal income per capita is just $44,000, which equates to less than $3,700 per month. According to LendingTree, the average monthly Mortgage payment is around $1,100, meaning Americans are spending more than 43 percent of their income on just their car and their house. That may not sound like much, but as the price of goods and services like food and health care increase, consumers are less able to afford their lifestyles. Plus that disposable income number includes benefits and employer contributions to 401ks and pensions. If this sounds familiar, a similar thing happened in 2008 when housing prices were crazy high and we know how that all turned out. But it’s probably fine, guys. After all, 90-day delinquent loans only increased to 4.3 percent this past quarter and Bloomberg reports that people are prioritizing cell phone bills over their auto loans and credit cards, with PeerIQ CEO Ram Ahluwalia saying “the car is no longer a central asset.” But it’s fine.

Uber Pads Wallet, Prepares for IPO

Fresh off surprising Pittsburgh’s mayor with resuming autonomous vehicle testing in the city, Uber now wants to be the “Amazon for Transportation,” according to CEO Dara Khosrowshahi. Between its ride hailing service and UberEats, the company is doing pretty well financially and hopes to act as a platform for all sorts of transportation solutions, including public transit, ride sharing and even biking. It looks like others are buying this too, with Japan’s Softbank having taken a large ownership stake in the company. Softbank also announced this week that they’re investing $2.25 billion in GM Cruise, General Motors’ autonomous vehicle division, which may open up some doors for Uber to test with vehicles other than Volvo’s, and will allow GM to operate on Uber’s platform. But more than just some Japanese money, Uber wants our money as well and is on course for an initial public offering next year, where individuals with more hope than brains can spend their hard-earned money to purchase stock in a company that is still burning cash and doesn’t really have a solid path towards profitability, at least until its autonomous program cuts out all its human drivers. But Skynet doesn’t go live until 2047 in most Terminator timelines, so I think we’re good for a while if you want to get in on the ground floor.

Jaguar Land Rover Goes Muddin’ (Autonomously)

Jaguar Land Rover announced this week that they are developing a system called Cortex, a project that hopes to develop level 4 and 5 automation for off-road driving. Currently, autonomous systems rely on digital road mapping pretty extensively, so an off-road system would have to depend more on cameras evaluating the terrain ahead and adjusting the vehicle correspondingly. In theory, this will render the Cortex system more advanced and reliable than most other systems at adapting to unplanned changes in conditions. Head of the company’s connected and autonomous vehicle research program Chris Holmes said “It’s important that we develop our self-driving vehicles with the same capability and performance customers expect from all Jaguars and Land Rovers,” which I can appreciate. What I can’t appreciate is someone wanting to take their car off-road, but wanting the car to do the driving when you’re actually off-road. It’d be like designing a race car to drive itself, but with a race car driver as a passenger.

Duct Tape Fixes Everything

If you’ve been on YouTube, and I’ll assume you have, you probably know that there’s a video for how to fix virtually everything, and many of those fixes involve duct tape. Now there’s a video of how you can repair a flat tire with duct tape, except repair is really the right word, but rather “replace.” Some intrepid MacGyvers  who had a wheel without rubber decided to see what would happen if they wrapped the wheel in 20 rolls of duct tape and the results are, well, somewhat surprising in that the car definitely functioned afterwards. Granted, the non-sticky side offers virtually no grip, will tear under any torque and are utterly and completely unbalanced on the wheel, you can actually drive on a tire made of duct tape. That said, 20 rolls of duct tape cannot possibly be cheaper than a tire, so please leave this where it belongs – as a goofy stunt done by YouTube people.

Prius Greatly Improved with 8X the HorsePower

Photo by The Fast Lane Car

I’ve driven a Prius or two in my time and, not being the type of person who really appreciates driving in a super efficient sort of way, I can’t say I really appreciated the car. Now though, some nut jobs have gone and vastly improved the car by taking pretty much everything and throwing it out. The standard second generation Prius body of the vehicle in question now resides on a tube frame that also happens to house the motor from a Dodge Challenger Hellcat, which has been upped from its 707 horsepower to put down 800 at the wheels. Whereas the normal second generation Prius took about ten seconds to get to 60 miles per hour, this car now takes less than ten seconds to go an entire quarter mile and makes a divine sound while doing so. As for gas mileage? I’m gonna guess somewhere around 3 or 4, which does seem a bit thirsty when compared with the original.

Matt LeBlanc to Leave Top Gear

I’ve been catching up with the Grand Tour recently, which is a good show with some funny old guy that feels like an old couch – comfy, familiar, and a little stale. In comparison, Top Gear in the post-Chris Evans seasons feels fresh and interesting and fun and I find myself wishing for more episodes of it rather than the Grand Tour. One of the reasons it’s been so good is Matt LeBlanc, who unfortunately has announced that he will be leaving the show after next series because of time and travel constraints. I get it – he’s American and has to go to the UK for filming, which takes him away from family and friends for a considerable amount of time. In any case, Top Gear will continue on with Chris Harris, who is also excellent, and Rory Reid, who is a genuinely funny guy. But who will replace Joey? Chandler Bing?

Chrysler to Disappear with Fiat?

FiatChrysler CEO Sergio Marchionne will outline the next five year plan for the company’s car brands – a plan he will not oversee since this is his last year in charge of the company. In the last plan set forth in 2014 titled “Our Time Has Come,” Marchionne stated that Chrysler would have eight vehicles in its lineup by 2018, including two plug-in hybrids. As of last count, Chrysler has two cars, the Pacifica and the 300. I guess three if you count the Pacifica Hybrid as a separate vehicle, but still nowhere near eight total models. Gone is the weak 200 and the planned 100 compact sedan and various crossovers never appeared. FiatChrysler apparently got distracted with its brands that were actually doing well, namely Jeep, Ram and Ferrari, and didn’t really put any effort into either Fiat or Chrysler, both of which have crappy, unappealing lineups that are struggling to move cars amid poor reviews and a complete lack of buyer interest. How crappy you ask? Well the company has had to recall 4.8 million vehicles this week because their cruise control may not turn off, which seems like a pretty important thing to be able to turn off. Apparently braking still works to slow the car but people are idiots and may panic if their car doesn’t slow when they disengage cruise control.

Rumor now has it that Marchionne will announce tomorrow that Fiat will exit the U.S. market and Chrysler will exit the rest of the world, remaining for sale only in the U.S. My question is, why stop there? Chrysler has destroyed any sort of goodwill it had in buyers loyal to the brand by not coming out with anything new recently and the Pacifica could just be renamed the Dodge Grand Caravan, and that’s really only because Waymo just ordered 62,000 Pacificas for its autonomous fleet. Kill off the ancient 300 and you have nothing left to keep the Chrysler brand going. I’ll follow up on this next week when we hear more, but it’s probably not going to be too surprising if, just like Plymouth and most of Ford, we say goodbye to Chrysler.

Porsche Calls Car Collectors Immoral

Porsche Klassik magazine published an article recently addressing the issue of investors buying classic Porsches in order to profit from their appreciation rather than to drive them. The author called out such buyers for “spoiling the market” and “causing an explosion in prices even for ‘normal’ Porsche vehicles.” This is largely true, with prices for even basic air-cooled 993 models skyrocketing due to the desire of people to just buy and sit on cars until someone wants to pay them more for it than they paid. I appreciate good design and vehicular beauty and I think that some cars, sports cars especially, could be considered works of art, so in that sense, I appreciate why one might want to preserve such art. But like good artwork, great cars should be appreciated. You appreciate art by studying it and appreciating its form, and you appreciate cars by driving them.  The article goes on to say “the speculation in which many dealers are currently indulging is heading towards the downright immoral,” and I have a hard time disagreeing. But as baby boomers pass on and the generation saddled with $1.4 trillion in student loan debt comes up, these prices will fall back down. They have to, because otherwise the market for them won’t exist.

Authored by
Devlin Riggs

Headlines for the Week of March 12th, 2018

How’s that Ramp Up Going, Elon?

If you’re hoping, as I do, that every time Elon Musk and Tesla revise their output schedules that this will surely be the time they get it figured out and it’ll be smooth sailing from here on out, you’re not going to enjoy this next story. Tesla had to completely shut down its Fremont, California manufacturing plant for a week last month to fix issues and bottlenecks related to the production of their Model 3 sedan. According to workers inside the factory, a staggering 40% of parts for vehicles were not suitable for use on cars, requiring extensive reworking or re-manufacturing, which are apparently different things. Reworking involves taking a new part and fixing it to be up to a certain standard, while re-manufacturing takes used parts and fixes them up to be new-looking again. Tesla insists they don’t put re-manufactured parts on cars, but if almost half of parts require reworking, and they’re still putting out cars with irregular panel gaps that command comparisons to 90's Kias, you can call it “re-wizarding,” but it’s still not a good thing.

Trump Strikes AGAIN

The President of the United States has a habit of weighing in on things in a…unique way, and last week, when discussing the Trans-Pacific Partnership and how horrible it is, cited a practice that is either so top secret that no auto industry professional in the world has ever heard of it, or is completely made up. Here are Trump’s exact comments: “It’s the bowling ball test. They take a bowling ball from 20 feet up in the air and drop it on the hood of the car. If the hood dents, the car doesn’t qualify. It’s horrible.” What!? What car could possibly pass this test!? After thoroughly baffling the automotive media for a while and offering no explanation for his comments, an astute reader of the Washington Post’s coverage of the story suggested in the comments that perhaps he was referring to a test where Japanese safety officials test pedestrian safety by shooting dummy heads at car hoods to determine how damaged a head might be if it made contact with a car. Perhaps someone explained this with a bowling ball analogy, which could account for some of the misunderstanding, but the part about a car failing if it dents is still completely out of left field. In any case, it’s a test Japan applies to all cars, not just imports to keep them out of the country, so to use it as a sort of argument against the Trans-Pacific Partnership was always a stretch but, when it comes to politics these days, sense and logic doesn’t really apply anymore anyway.

Green with Envy, Yellow with Value

When I chose the gorgeous Reflex Silver color for my GTI, resale value didn’t really factor into my decision; I just liked it more than all the other options available. But apparently people do choose white, silver and black because those sort of “neutral” colors are more universally liked and the theory goes makes your car more desirable secondhand. Well, turns out that’s bogus because a new study by used car search engine ISeeCars.com has revealed that the car color with the lowest depreciation rate was, in fact, yellow, depreciating an average of 27 percent in the first three years of ownership. Also above average were green and orange, going to show that safe colors really aren’t that safe. But that’s not to say all wild colors are helpful. Some of the worst performing colors were beige, gold and purple. The purple car that immediately jumps to mind is the Chrysler PT Cruiser, which immediately makes sense why it would be one of the worst cars for keeping its value.

Lamborghini Says, "Damn the Fuel Economy Standards!"

Speaking of yellow cars that don’t depreciate much, Lamborghini was in the news this week for comments made by the company’s chief technical officer, Maurizio Reggiani. He indicated that, while other companies like Ferrari are moving to a V-8 or V-6 turbo hybrid in their future cars, Lamborghini has no intention to stop making their V-10s like that which powers the Huracan today. I love this quote from him: “My question is, why do I need to do something different? If I trust in the naturally aspirated engine, why do I need to downgrade my power train to a V-8 or V-6? I am Lamborghini, I am the top of the pinnacle of the super sports car. I want to stay where I am.” You do you, Lamborghini, and we will love you always for it.

GM Wants to Rent Your Car

With the launch of its Maven service in several US Cities, General Motors joined the ranks of the ride-sharing businesses, but using new cars put into circulation by General Motors themselves. Starting this summer, GM will begin a pilot program, expanding vehicle availability to personal cars if owners are willing to put their vehicles up for rent. This equates to a sort of Air BnB on wheels, which actually already exists with services like Turo, which I did not previously know about. But this being a GM venture, it has some extra benefits, like Maven offering liability insurance for GM vehicle buyers who choose to take part in the plan. Given how people generally treat their rental cars, I can’t imagine there would be a whole lot of interest in pimping out your ride, but if you need some extra money, maybe it’ll catch on with the likes of people who see their cars as appliances.

Arlington 86s its Buses

In other ride sharing news, Arlington, Texas has done away with its public transportation, which apparently was lacking anyway. Instead of buses and routes, the city has launched Arlington Via, which features Mercedes-Benz Sprinter vans that can be hailed via an app or phone number and will come around and pick you up and take you to your destination. If this sounds a lot like Uber or Lyft, you’re totally right, except that it’s publicly subsidized, so trips are only $3 or you can buy a week pass for $10, which is crazy cheap! For about $40 a month, you can basically have your own driver that you occasionally have to share with other passengers. Mark my words, smart people will use and abuse the hell out of this system and it will be fantastic until the city realizes what a massive loss it is and discontinues it after its one year contract is up. I would absolutely be doing that if such a service were available here. It’s less than the monthly payment on any car! And you don’t have to drive in traffic!

Toyota Bolsters Avis’ Connected Fleet

Finally in rental car news, Toyota has signed a multi-year deal with Avis Budget Group that will supply 10,000 connected cars to Avis to “help streamline the customer rental experience.” It’ll basically help provide real-time location, odometer, fuel level and other information without the need for attendants to go check the cars manually, which would honestly be pretty handy if you’re running late for a flight and just needed your receipt so the accounting department doesn’t crucify you when you get back to work. It’s not very exciting and it seems like something that should’ve been accomplished years ago, but I guess we should just be happy with progress when we get it.

Buick’s Naming Crap Continues to Confound

Last you heard of Buick, they were prohibiting the use of the word wagon when mentioning their new Regal TourX, insisting it was a crossover. Well, starting next year, they will begin forcing drivers of all their new vehicles to insist that their car is indeed a Buick when asked by incredulous friends as happens all the time because their commercials are so reflective of real life. That’s because Buick is removing the “Buick” lettering from the back of its vehicles in the same way that BMW and Mercedes-Benz don’t actually say “BMW” and “Mercedes-Benz” on the back because people just know what the propeller circle and tri-star signify. Buick has the audacity to think that buyers most definitely know that the tri-shield badge means that a vehicle is the Buick. And while, sure, loyal listeners of my show may know that, I think it’s a bit presumptuous to suggest everyone does. But you know, good luck to Buick, who sold 4.5% fewer cars in America in 2017 than they did in 2016, which is also half the number of vehicles they sold in 2002. You’re probably doing just fine.

Elsa Lets the Boston Police Go

Video from Time

In South Boston this week, for the first time in, well, a week, the city got 16 inches of snow, which trapped a Boston Police van. Normally this type of story wouldn’t make the news, but the van was freed by none other than Elsa from Disney’s Frozen. A man dressed as the ice princess approached the beached van and asked the drivers if they wanted to build a snow ramp. She dutifully guided them as they rocked the van out of its spot and pushed until the vehicle was clear of the snow and then let it go. Turns out the cold never bothered her anyway. And that’s enough Frozen jokes.

New Cars

Baby Bronco and Mustang GT500

Ford made a big splash this week, announcing plans to refresh 75% of its lineup by 2020, which is good because, honestly, it needs the help. Where’s it making the biggest investment? Predictably, in vehicles that sell like hotcakes, namely SUVs, where the brand’s existing models are pretty long in the tooth. But we’re not just talking about the Escape, Edge and Explorer, all of which will get new versions, which include ST trim models that up the performance factor a bit. We already knew a new Bronco is coming and, although we haven’t seen it yet, Ford announced that they would have a smaller off-road-focused SUV that would be coming out to slot in below the revival of the bucking horse truck. We don’t really have any details on it, but the speculation is that it’ll give the Wrangler a run for its money in performance if maybe not in the customization sector. They also teased a photo of the new Shelby Mustang GT500, which can obviously only be a good thing. As we see automakers continue to churn out compact crossovers, it’s honestly great to see Ford say, “Yeah, but how about a Wrangler alternative and an even faster Mustang?” The market may not be demanding the most exciting vehicles, but at least automakers still have some people working there that want to inject the fun into cars to satisfy those of us in the so-called niche markets.

Audis for Everybody

If you like Audis, then screw the year of the truck, this is the year of the four rings for you. The company shared this week that they expect sales and deliveries of new cars to be pretty poor this year because they’re basically going to spend the entire next eight and a half months dropping new cars on us. They say there will be over 20 redesigned and new models launched this year, including the launch of several all electric models like the E-Tron crossover and E-Tron GT, a sedan. There will also be redesigned versions of most of the rest of Audi’s lineup, and the rate of unveiling means we’ll see a new car from them just about every three weeks, which is crazy ridiculous! But then again, when you think about Audi’s styling and realize they just stick an existing car in a copier and change the magnification level and hit “print,” maybe it’s not that outrageous to have so many cars coming out at once. Especially when Audi apparently achieved a billion Euro cost reduction last year by reducing research & development. Be prepared for a new generation of, “Oh, that’s a nice A-6. Er, A-4? Ach S-8!”

VW is S.O.L with New Names

Meanwhile at parent company Volkswagen, the Germans apparently had to come up with a new name for the electric vehicle brand they are preparing to launch in China with partner company JAC because they were not allowed to use the Chinese name for SEAT. Instead, they have chosen SOL, in all caps, which of course is Spanish for “sun,” conjuring images of a bright, shiny all electric future. Or, if you’re the type of person who uses acronyms, the capital letters S-O-L means “Shit Outta Luck,” which is just as well because the first car of the joint venture is a re-badged JAC vehicle that boosts just 114 horsepower and a top speed of 80 miles per hour. So, sorry, China, if you were hoping for a better electric vehicle to come from the partnership. I guess you’re, well, you know.

Lexus RC Black

It’s been at least a few weeks since our last black edition of any car, so we were about due for one. This time it’s Lexus, who is creating only 650 versions of their RC F Sport Black Line. The trick is, it’s not actually a trim available for the RC F. Just the RC 300 and 350. So not the V-8, just the V-6 and I-4 models, which, to me, causes it to lose a bit of the sinister element to it. What’s the Black Line version get you? More black. Just like in every black version of any car. Can this trend stop now?

Also from Lexus, they are launching the Sport Yacht concept, which is not a tongue-in-cheek concept car that plays on large sedans being referred to as land yachts. It is actually a yacht. It started as a fun concept from Toyota Marine Division, a 42-foot ship that features two Lexus 5-liter V-8 engines cranking out 885 horsepower and an almighty sound. The concept was never intended for production apparently, but after being handed the “Boat of the Year” award at the Japan International Boat Show, Toyota has had a sit down and think and decided that, yes, it would like to make more money from rich people and will actually build the boat and offer it for sale worldwide. Not just that, but they’re planning on a 65-foot version that can entertain up to 15 guests, because rich people love offering people a ride in their Lexus only to pull up in their Maserati and say, “Ha, silly, my Lexus is docked!”

Hyundai Kite Concept

Hyundai is also going nautical with their Kite concept, which debuted at the Geneva show two weeks ago but didn’t quite make it into my rap-up. It’s a sort of light weight dune buggy thing that was designed by 15 students as part of their Master in Transportation Design program at the Instituto Europeo di Design. The wild thing is, it can be transformed into a single seat jet ski, and who doesn’t want that! Granted, the utility of this thing is somewhat questionable. A dune buggy isn’t exactly practical for a daily commute and the number of times I have been flying over dunes only to arrive at a sudden ocean or lake and wished I could suddenly have a jet ski are relatively few. But you have to celebrate thinking outside the box, and this is most definitely that.

Honda Mean Mower Mk.2

Honda, it seems, is getting tired of being asked when they’re going to bring back the S2000 or some other affordable sports car now that their NSX has pushed decidedly upmarket. Instead of replying simply “never,” they’ve resorted to the tried and true internet tradition of trolling their fans. Instead of coming out with a fun sports car with 189 horsepower that will hit 134 miles per hour, Honda this week unveiled the Mean Mower Mk.2, a riding lawn mower with the engine from one of their 1,000 CC Fireblade motorbikes because why make a fun car when you can make a fun lawnmower instead? This isn’t the first time Honda has done this, having put a V-twin from a previous Fireblade into an older riding mower and achieving some impressive numbers. This second generation takes it up a notch, just as it takes up the trolling. Honda knows how to have fun. They’re just not going to go out of their way to help us have any. But hey, keep having your engineers work on pointless shit, Honda. And maybe give your designers the day off so we can have a Civic that doesn’t look like an origami spaceship.

Obituaries

Lincoln Continental

R.I.P

We heard some rumors last week that Ford is planning on canceling the Lincoln Continental after just one new generation of the car they allegedly spent $1 billion to resurrect, which seems like a ridiculous waste of money. That said, last year, they barely sold 12,000 examples, which pales in comparison to the 52,000 Mercedes-Benz E-classes or the nearly 41,000 BMW 5-Series cars of similar size and fanciness that were sold last year. When it debuted, the Continental was mocked for being a knock-off Bentley in its styling, but I guess not that many people are interested in driving Bentley knock-offs? This hasn’t been confirmed yet, but with sales that low and sales of sedans in general tanking like the Miami Marlins, it’s a safe bet that Ford might want to cut its losses. 

Authored by
Devlin Riggs

Headlines for the Week of March 5th, 2018

The Year of the ...Truck?

After a wild Detroit Auto Show when all three big American brands showed off their fancy, shiny new pickups, and on the heels of a market clamoring for bigger, butcher, gas-guzzlier vehicles, 2018 was decreed the year of the truck. So how are we looking two months in? Like maybe declaring what year this was in January was a little premature. Pickup sales were down a whopping 15% in February over 2017, which itself was not a great year for motor vehicle sales. Analysts are chalking it up to a “continued softening of the market,” which is a polite way of saying nobody is really buying cars right now. I think the best way to drive sales though, is to probably start accusing buyers of softening the market, to which all the super insecure guys will probably respond “No, you're a soft market! I'm hard all the time. Gimme that truck!"

Detroit Auto Show to Move to Fall

Speaking of the Detroit Auto Show, it usually kicks off the year every January, a time where it has to compete for attention with the Consumer Electronics Show, which is increasingly a car show as cars are increasingly consumer electronics. The idea has apparently been presented to move the North American International Auto Show in Detroit to October, when there’s less competition and the weather isn’t so shitty in Michigan and carmakers can do some things outside of Cobo Hall. The problem is, the show takes a whopping three months to set up, and there are events in the hall during those months, so the show would have to scale back on the extravagance or find another time altogether. Given that automakers have started sitting out some shows, and many didn’t come or brought a reduced presence to Detroit this year, not to mention the political pressure a trade war might bring, moving might not be the answer to the Detroit Show’s problems. 

Michigan Forgives Where Illinois Doesn’t

Also in Michigan, the state has forgiven $637 million in fees owed by drivers so the people in debt can get their licenses back. Those extra fees were a part of a scheme from the governor in 2003 to plug a budget hole by tacking on extra fees for traffic tickets committed by people with more than 7 points on their licenses. Of course, it’s not good to get any points, and perhaps if you’re such a bad driver that you rack up so many citations that your license gets revoked, maybe you shouldn’t get it back. But your tickets shouldn’t drive you into poverty such that you can’t afford to get it back. There are some stipulations regarding who can get their licenses back when, but most of the fees are being waived as long as drivers do it quickly. How many people are we talking? About 300,000 people have had their licenses suspended because of unpaid fees. That’s about half the population of the city of Detroit. To their credit, Michigan saw the error of their ways, unlike Illinois, but I can’t imagine I’d be too happy with them if I’ve had my license suspended for the past 15 freaking years, forgiveness or not.

Tesla Fined for Pollution

Tesla, makers of the clean-running, no carbon emissions electric cars for rich people, have been fined for air pollution. Specifically related to the excess nitrogen oxide pollution from the company’s Fremont manufacturing facility, not from the vehicles themselves. Tesla says the emissions were the result of some malfunctioning equipment that has since been resolved, but nevertheless, they have settled the case with California, part of which entails the installation of solar panels on the roof to further drive down the facility’s dependence on fossil fuels. As far as fines go, $140K and a promise to be more energy independent are getting off pretty easy.

Goodyear’s Green Tires

Goodyear is also getting in on the green bandwagon and has unveiled some new tires that are truly ridiculous and have no hope of ever seeing production, but are a neat idea and interesting to look at nonetheless. Basically, it’s an airless tire, which we’ve seen many concepts of previously, made of recycled tires, that features a healthy moss growing between its rigid rubber structures. The moss takes carbon dioxide and generates oxygen from it, and the moss is fed water by the tire, which soaks up some moisture and routes it to the plant. They said it could take as much as 4,000 tons of carbon dioxide out of the air and add as much as 3,000 tons of oxygen. That is, if everyone in a city the size of Paris wanted to drive around with fuzzy green wheels on our cars, which I’m not entirely against! Goodyear also showed off some new tires specifically designed for EVs since apparently traditional tires wear out 30% faster on electric vehicles because of both the weight and force of instant torque just shredding rubber. The new design has a bigger contact patch with the road for more grip and also generates less noise, which is great because EVs are already so quiet, tires do tend to be the loudest thing on them apart from wind, which I doubt Goodyear can do much about. These will be on the road in Europe next year, and they feature a light baby blue paint because that somehow became the official color of hybrids and efficiency.

Ride Hailing Wages In Dispute

A study released by MIT’s Center for Energy and Environmental Policy Research or, as nobody calls it, CEEPR, compared a survey of 1,100 drivers for Uber and Lyft with what they called “detailed vehicle cost information” and found that the median profit for drivers came out to around $3.37 per hour before taxes. It said that as many as 74% of drivers are earning less than the minimum wage their states mandated, all of which means that most people driving for these ride hailing services would be living in poverty. Uber and Lyft were quick to dismiss the study as using shoddy and/or inconsistent data and much of it was self-reported by drivers, who are incentivized to paint a bleak picture of their earnings so the companies will raise their pay rate. The disputes were so strong that one of the paper’s lead authors actually came out and said that he agreed that some of the information could be misleading and that they’d rerun the numbers to try to improve the validity of the study. Either way, ride hailing drivers probably don’t make too much money and MIT students probably don’t have enough oversight in their research.

Audi Debuts (Not Terrible) Flying Car Concept

Flying cars. We’ve all been here before, but Audi has partnered with Airbus and Italdesign to unveil a concept that’s actually not too incredibly terrible. Instead of the tried and dumb design of a car-and-plane-in-one package that is what we commonly think of as a flying car, the Pop.Up Next concept utilizes a three-part system comprised of a passenger pod, a skateboard-like road-going electric vehicle platform that the pod can sit on, and an eight-rotor quad copter-like flying unit that the pod can hang from. The concept video, which looks really neat, shows that Audi knows that only super duper rich white people are going to use this thing, and it’s designed as a sort of taxicab supplement, where you can hop in a pod with the flying unit attached once you get out of your first class or chartered flight, then fly across the city to a lot where the skateboard-EV units are located and the flying unit will land your pod on the wheeled vehicle, sending you on your way to your final destination while the flying pod autonomously flies back to the airport or to a charging station somewhere.

As far as flying car concepts go, this is one of the most well thought out versions, but there are just so many hurdles to get over before these things can ever actually be realized. But the fact that these are fully autonomous gives this a leg up because then you don’t have to license drivers as private pilots, which, given the skill level of most drivers, always seemed like a long shot.

Anything Audi Does Dutch Can Do Better

The Dutch have come along and laughed at Audi’s pitiful attempt at a complicated-ass flying car and said, “No, you krauts, this is how we will get all the rich white peoples' money!” And they tore the cover off the Pal-V Liberty, which is also a flying car, but one of those car-and-plane-in-one package. Except it’s more of a car and a gyro copter, which permits a shorter take-off and landing, which is handy since I don’t think many people have their own runway. What’s different about this is that they say it’s fully road- and air-legal and can be purchased right now, making it what they call the world’s first production flying car. How much does the exclusivity of owning such a thing run? Well, their cheapest bargain basement Liberty Sport model, which comes with flying lessons since a pilot’s license is required, starts at just $368,000, or the price of a really quite nice, large Midwestern home. But can your home fly at 112 miles per hour and get 31 miles per gallon? I didn’t think so. Peasant. 

Renault’s EZ-Go Needs Customers to EZ-Come

Renault, meanwhile, is keeping its autonomous taxi plans completely grounded, but has also unveiled a pretty interesting concept called the EZ-GO. It’s all-electric and features level 4 autonomy as well as an interior that is basically just some benches and a lot of windows. It opens in a sort of clam shell way that would probably be terrible in rain but at least looks neat, and has a flat loading floor to haul wheelchair-bound passengers, which is a nice touch. They foresee this as a solution to ride sharing and ride hailing that cuts out the driver and use of a personal vehicle, which is to say a shared taxi, and are hoping to have operational prototypes on the road in the next four years. Parent company Nissan also owns a stake in a media company, which just so happens to be interested in providing content for passengers to view while riding in the EZ-GO. There were no suggestions on how much rides might cost, but if I’m a captive audience being forced to watch some commercials during my ride, it better be cheap or free.

Mercedes Puts Real Projectors in Your Projectors

Another neat concept shown at the Geneva Motor Show this week was Mercedes’ new projector headlight system. Now, projector headlights have been around for a long time. They use parabolic glass or plastic to project the output of your headlights further. But this is a bit different. Called the “million-pixel” headlight, these will actually project images onto the road ahead of you, warning of upcoming peril, or providing driving tips, or doing neat things like displaying the dimensions of your car to see if you’ll be able to fit in a parallel parking spot (in which, of course, the car will park for you). It can also detect faces and windshields and automatically dim pixels to not blind pedestrians or other drivers, which is a fantastic feature for all the old-ass Mercedes owners who constantly drive around with their brights on. I don’t think it will help them turn off their turn signals or stop mistaking the gas for the brake though. 

Pre-Production Honda CB750 Sets Record

Photo from AutoWeek

In motorcycle news, the Honda CB750 is one of the best selling motorcycles of all time. Well, that’s not the news, actually. It’s old news because they haven’t made the CB750 for decades. But when it came out, it was one of the first bikes to use a four cylinder motor and was pretty powerful. In fact, it’s referred to as the first Universal Japanese Motorcycle, which is sort of a term that covers a bunch of similar Japanese bikes to have similar specs and come out in the 70s and 80s. But the CB750 was the first, and at auction this week, a pre-production model from 1968 built for promotional purposes, and one of two produced prior to the model’s actual release, sold for a record of nearly $264,000. These bikes are so ubiquitous that you can head to craigslist right now and find one for around a grand, so why the markup? There’s exclusivity in being one of the first of the first of a kind.

Elon Set to Make ELOT of Money

Photo from Elon Musk's Instagram

Elon Musk has maintained that he won’t take a salary from Tesla Motors as they ramp up production and start fulfilling the 500,000 reservations for their Model 3, but two of Tesla’s largest shareholders are much more generous to the CEO than he is to himself. They have proposed a vote on a compensation package valued at $2.6 billion, which represents about 5% of Tesla’s market valuation, which some have accurately called ludicrously high. They apparently see it as a showing of support for the guy who has, in their terms, produced some pretty incredible things for the company so far, and they’re not entirely wrong. What he has also done is consistently over-promise and under-deliver while allowing some shady business practices to go unchecked and discourage unionization to protect the workers affected by the shadiness. And here I thought the secret to getting rich was under-promising and over-delivering. Turns out I’ve been doing it wrong my whole life. 

Saudi Sells Billionaire’s Blingy Rides

My house is a nice house, but it only has a two car garage, which is still more garage than many people have, but I think a prerequisite for a next house would be space for a third car. I, however, am not a Saudi billionaire, and it’s a good thing, because my garage space would not remotely be enough to accommodate the car collections of these guys. I’m speaking specifically about Maan al-Senea, who is being detained right now due to debts owed by his company, appropriately called the Saad Group. He owes as much as $16 billion to creditors and in order to pay off some of his debt, the government of Saudi Arabia is selling some of his cars. How far will that go? Well, considering he and his company have 923 vehicles licensed to them, it turns out the sales can go pretty far! I honestly don’t know how you store almost a thousand cars. But I’d sure as hell like to give it a try someday. But, you know, without the billions in debt.

New Cars

Chevy Bolt Rear Seat Delete

I drive a hatchback, which I occasionally use to haul work-related things, and it’s great because I can just fold the back seat down and throw in all my camera gear or whatever I’m toting with me on any given day. Hatchbacks are great for this, but I don’t think I’d ever really consider using one as a commercial hauling vehicle, but Chevy has decided that some people do actually think that’s a good idea, and that the best way to accomplish this is to take their all-electric Chevy Bolt and throw out its back seat, giving you plenty of space to store...whatever it is you have to take to your job site. I should caveat this by saying that you won’t actually be able to order a Chevy Bolt Rear Seat Delete (as they’re calling the package) because it’s restricted to government or fleet orders and is available as a $350 add-on. Which, when you think about it makes sense, because only the government would find it rational to pay hundreds of dollars more to get less of something.

Mahindra Roxor

If you haven’t heard of Mahindra, I don’t blame you. They’re an Indian automobile manufacturer who produces quite a few vehicles, just none of which come to the States. They’ve also had a license to produce replicas of the old Willy's Jeep for some time, and now, for the first time, they’re going to start releasing those replicas for sale in the US, and they’ll be made in Michigan! Mechanically, they are extremely similar to the old CJ-model Jeeps (before it was called the Wrangler), but it uses a unique power plant; a small diesel and manual transmission. Unfortunately, safety standards have advanced a tad since the 1940s, so while these are remarkably similar to the old models, they are most definitely not road legal. So if you’re in the market for a fun trail vehicle or a little utility all-terrain vehicle like the Polaris Ranger but want some vintage style, this thing is for you. Oh, and it’s also $15,000 so you could buy one or just buy a used Wrangler for less money and be able to drive it on the road. Your choice.

Obituaries

Volkswagen Beetle

We learned this week that the plucky Volkswagen Beetle will be discontinued after the current generation, though we don’t know when that will be. As all Volkswagens start to move over to the fabulous MQB platform, the Beetle doesn’t really fit and, as Research & Development boss Frank Welsch said, there’s only so many times you can have a “new new new new Beetle.” As it leaves, the new I.D. Buzz, the retro-futuristic electric minibus will be taking its place as the nostalgic vehicle in the VW lineup, albeit with a decidedly modern flair and probably no vase for flowers tucked into the dash.

Also last week was the Geneva Motor Show in Switzerland, and I’ve talked in the last few weeks about how so many cars had been unveiled online before appearing at the actual show. It really kind of took the wind out of the sails for the whole thing, and I wasn’t expecting to have a whole lot of new material for my usual Rap-up. So instead, in last week's podcast, I put together a little diddy that sort of expresses how I feel about this year’s event. If you haven't listened already, check it out!

Authored by
Devlin Riggs

Headlines & New Cars for the Week of January 8, 2018

Sales Slump to Continue

After all the numbers came in for 2017, overall vehicle sales were down 1.8% over 2016, which marks the first decline in seven years and, unfortunately for car makers, there’s no real end in sight. That is, unless you’re a super car manufacturer. Aston Martin and McLaren both recorded their biggest ever sales years in 2017 because the rich are getting so incredibly stinking rich!

Anyway. During the recession, people held on to their cars longer because they couldn’t afford to replace them. This meant stiffer competition among automakers for the sales that were occurring, so they worked hard to make their cars more appealing, more reliable and safer. When the economy finally bounced back, people spent the next seven years getting rid of their old vehicles and upgrading to newer, better cars.The reports bear this out – cars these days are safer, more reliable and more satisfying than ever before, and so people are keeping them longer, leading to a sales decline.

Sure, you’ll still have incidents where people blow through red lights and total cars, thereby generating a certain amount of reluctant sales, but there are already 1.26 vehicles on the road for every one licensed driver, meaning we have a shit ton of unlicensed drivers out there, or people just have plenty of cars.

And that’s what the industry experts are thinking – we’ve reached peak car, where we’ll back off to a stable replacement level of sales each year. Plus, as interest rates rise, people aren’t going to want to take out loans for new cars either. So how will automakers cope with a shrinking pie from which to get slices? Will they keep innovating as they did during the recession to attract a larger share, or will they collectively start making their products less reliable so they go bad at a prescribed point, forcing owners to upgrade? This is what we’d call the iPhone sales tactic.

Leasing Surges

On the heels of the sales report, leasing looks like it’s going gangbusters. About 31 percent of all new vehicle sales are leases in the US, but if you look at plug-in hybrids, the number jumps to 55 percent of all sales. And then there’s pure electric vehicles. Eighty percent of all EV sales are leases, which is crazy. Almost all people want to essentially rent these cars for a few years and Bloomberg is reporting that a major cause of this is the overall sense among consumers that electric vehicles are going to get better than they are now, so they don’t want to be locked into obsolete technology. Plus, resale value of EVs is currently very, very poor so purchasing one outright just doesn’t really make any sense, apart from for those 20 percent of people who bought them outright. Enjoy your Leaf!

Fuel Costs Jumping

Of course, those EVs may start to look more attractive this year as the 2018 Fuel Price Outlook suggests that gas prices could peak at just less than $3 per gallon. GasBuddy predicts that the national average price will rise 19 cents to around $2.57 per gallon this year, which still is not THAT bad, especially when you look at the rest of the world. But combine that with the drop in fuel efficiency we saw among new car purchases last year and GasBuddy predicts the average household will spend $1,898 on fuel this year. That’s $133 more than last year, which is the cost of at least two nice taco dinners, and I cast shame upon the evil oil spectators behind this rise because nothing should stand between us and nice taco dinners!

California Banning ICEs

Meanwhile in California, the land of the future, a bill has been introduced to the state legislature that would ban the sale of new cars and trucks powered by gasoline or diesel fuels by the year 2040. If you’ve been tuning into the show for a while, you’ll know that 2040 is also a deadline set by Paris, London and a few other cities or countries, with some even having more aggressive targets for pollution reduction. They estimate that the measure, if it’s adopted, would cut greenhouse gas emissions by 80 percent from 1990 levels in just ten years. We’ll have to see how they end up voting, but I bet there are going to be some very busy lobbyists in Sacramento this week! 

Mazda’s Creepin’ Tech

Mazda this week filed a patent for some technology that’s both innovative and incredibly creepy. It’s apparently all in an effort to thwart distracted or drowsy driving. Basically, there is a camera or series of cameras set up inside the car, pointed at the driver and the car’s computer uses the driver’s eyes and expression to determine if the driver is paying attention and engaged with the drive they’re going on. If it determines that the driver is busy checking texts or Facebook or dozing off, the car will apparently respond by doing anything from simple sounds and visual prompts to changing the navigation system to route the driver to a more fun-looking road to drive. If the driver looks like he or she is having fun and is entertained by the route, the computer will store that route for later reference. Basically, Mazda is going to find all the cool roads and fill them with CX-9s because drivers can’t put their stupid phones down anymore.  

"Eyes on the road, buddy!" - Mazda

Nissan Gets in Your Head

And speaking of creepy, Nissan is taking it to the next level with their new Brain to Vehicle (B2V) system, which they will be showing off this coming week at the Consumer Electronics Show. Drivers are fitted with a skull cap that monitors brain wave activity and transmits signals to steering, acceleration and braking systems that can respond before the driver even moves his or her hands or feet. The driver still actually makes the car do things, but the car just anticipates what’s going to happen and can start things milliseconds sooner. Apparently this is meant to enhance the driving pleasure when it seems to me it’s just cheaper to make cars faster and more responsive than to dump time and research into brain wave monitoring. But hey, they’re making money like crazy selling Nissan Rogues to people so they can do what they want I guess. 

Tesla Under-performs...Again

Meanwhile a Tesla earnings call this week managed to once again unveil the woeful under-performance of the company in meeting the goals its founder sets for it. Rather than churning out a few thousand Model 3s per week as predicted earlier this year, Tesla’s highest number yet was a little less than 800 and, let’s be honest, making almost 100 cars a day is still a super achievement and they’re ramping up effectively. The problem comes when the founder is all bluster about getting to 5,000 cars per week by the end of Q1 2018 which, by the way, has been pushed back to the end of the second quarter. Tesla’s stock took a hit after the announcement, which was, for once, not accompanied by some other shiny thing to distract investors from the problems going on. Tesla has a big year coming up with the launch of both their semi truck and the Model Y, but it’s critical they get their shit figured out quick, or buyers are going to start figuring out that hey, that Chevy Bolt is a pretty nice car and I can go buy one right now.

Burn Rover, Burn

On Sunday night last week, a parking garage in Liverpool, England, resembled the gates of hell as a raging inferno engulfed 1,400 vehicles. Fortunately, no one was injured and, surprisingly, the fire wasn’t started by an Italian super car. It was rather friendly fire, coming from a Land Rover, of course vehicles not known for their wiring or electronics excellence. The fire really is something incredible to see, as you can tell from the video above. The fuel in the cars just fed the fire until it was completely unconquerable by the local fire brigade, meaning they couldn’t stop it spreading to other cars. Sort of like an automotive herpes that, instead of itching, just creates a huge insurance hassle for thousands of people.

Squirrels Drive Local Man Nutty

A British Volkswagen Golf driver learned the hard way how squirrels are  just rats with fluffy tails last month. Apparently he parked his car outside his girlfriend’s father’s home near London and then left with the girlfriend for a month to tour southeast Asia. During that time, several squirrels decided that hey, Volkswagen does make a pretty comfy car, and called the place home, storing acorns in every conceivable place throughout the vehicle they could access. The glove box, the engine bay, even the transmission was packed and the owner found it tough to shift when he returned home. The clean-up and disposal of hundreds of perfectly good acorns that would feed families of the little bastards throughout the winter cost the driver £230. Which is not a small sum, especially coming back from vacation.

Hot Dog, Cool Crime

In other food-related automotive antics, a driver in Texas got off with a warning this week when he was pulled over for a minor traffic violation. Apparently, prior to departing, he placed a hot dog on the rear bumper of his Chevy Silverado and taped a piece of paper with “Free hot dog” written on it above (hard to tell from the above photo, but easy to see how creepy it is) . He then proceeded to drive from Waco, Texas to Brownwood and back, a journey of more than 120 miles, before getting stopped. The hot dog and sign were still there. Now if you’re me, you think this is like the adult equivalent of free candy written on the side of a seedy van, but if you’re a Brown County sheriff's department officer, you just think he’s a funny dude and let him be on his way. Only a matter of time before witness reports roll in about bodies being found in the back of a white pickup with hot dog residue on the bumper.

Pampered Oregonians Pumping

You may or may not be aware, but New Jersey and Oregon both require full service gas stations, or at least they did. Oregon has started allowing rural stations to permit self serve. You know, the same kind of gas we have literally everywhere else in the country? Well apparently people are freaking out about it, don’t know how to pump their own gas and are afraid that they will either burn the whole place down or smell like gasoline the rest of the day. I get that if you grew up not doing it, you may not know how to pump gas, but I fail to believe that people have never watched an attendant do it for them, and I have absolutely zero sympathy for these pampered brats kicking and screaming to get the good old times back. This really seems like a Portlandia sketch in real life. But apparently that really just is the state of Oregon.

Turkmenistan Bad Luck Ban

They aren’t the only place suffering though. Do you love black cars? Do you live in Ashgabat, Turkmenistan? Well tough luck. Your car has just been banned because the president of the oppressive country has decided they are bad luck and they must be impounded or repainted at the owner’s expense. And I do mean expense because it’s a very poor country and the people there can absolutely not afford to repaint their cars just because their president is a nut job. Sorry Turkmen!

Banned in Turkmenistan.

New Cars

Is there a future for the Fusion?

First up in new car news is actually the cancellation of a new car, or at least new design. In a letter to suppliers this week, Ford announced that they are canceling the planned redesign of the Ford Fusion which was scheduled for a 2020 launch. While this doesn’t mean that the Fusion itself has been discontinued and doesn’t rule out a major change coming later, this does look pretty bad, given the trouble brands have had with selling mid-sized sedans this past year. Buyers just want SUVs, trucks and crossovers these days and while Fusion sales are going okay, particularly to fleets, Ford apparently doesn’t see the value in spending time and money in refreshing a car that has only been around four years and remains one of the best looking cars in its class. That or this is the evidence we need to show that Ford is all a part of a massive marijuana smuggling scheme from where the Fusions roll off the line in Mexico. Remember those stories? Twice Fusions have been found with the spare tire well packed to the brim with weed awaiting receipt by a distributor in the US only to be discovered by a so-called innocent car buyer. Sure, Ford. I’m on to you.

New Audis with New Looks

While Ford foregoes redesigns of its cars, Audi has decided that their utter lack of creativity for their own cars needs to be changed. If you’re like me, you’ve probably sat in traffic, admiring an Audi and thought “that’s a really nice looking S6. Or, uh, A8. No, A4? RS4? Shit.” That’s apparently pretty common. According to an interview with Autocar, CEO Rupert Stadler says the similarity between models was used to make Audis more recognizable to emerging markets, which they say has worked swimmingly and now they’re free to spend money and be creative again. Marc Lichte, Audi’s Chief Designer, was quoted as saying something along the lines of “Oh, thank god, Jesus in heaven I’m bored to death over here and only have rulers on this drafting table!” New designs should start rolling out in March or April of this year.

This originally aired in The AllWaysDrive Podcast on January 4, 2018. Subscribe now and never miss the latest new car news!

Authored by
Devlin Riggs