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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

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.

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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

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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

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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

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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

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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

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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

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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

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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

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

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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?

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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.

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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

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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.

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Authored by
Devlin Riggs

2018: The Year the Sedan Died?

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Mid-sized sedans - we’ve talked about them before on this site, and the news is rarely good. But recently, it’s just been one hit after the other for the segment and, according to a Bloomberg article this week, there’s a very real possibility that the mid-sized sedan segment ceases to exist in as little as eight years. So could 2018, a year heralded as the Year of the Truck by three very high profile unveilings in Detroit, also be the year the sedan died? 

Truthfully, this movement started years ago. After the days of $4 per gallon gasoline subsided, American buyers resumed the 1990s trend of buying gas-guzzling SUVs and driving vehicles vastly larger than they needed or could justify simply because they could. The family car became the family SUV and the primary victims of this trend were the cars that performed most poorly in a shrinking segment. These, of course, were Fiat Chrysler products. 

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But to his credit, Fiat Chrysler CEO, Sergio Marchionne, did the unthinkable - he killed off the Chrysler 200 and Dodge Dart - the traditional bread-and-butter mid-sized sedan and compact sedans that kept the big three American automakers alive during the oil crisis of the 1970s. And the outcome for Chrysler has been incredible. They’ve refocused their efforts on selling Jeeps, SUVs, big, powerful Dodges and Ram pickups, all of which are much higher margin cars than the 200 or the Dart, and the company is finally looking to turn a profit in 2018, which it has not done since 2012.

Other companies are taking a different path, moving production from the US, Canada or Mexico to China. It’s where pretty much all future Buicks will be built, and Ford has alerted Fusion suppliers that they will cease Mexican production, with the alternatives being China or not producing the car at all. With such a declining pie, the pieces are getting smaller for each manufacturer and to justify their existence, mid-sized sedans need to achieve a greater profit margin, which means cutting production cost or raising price. And in a declining automotive market where SUVs and crossovers frequently cost around the same price as sedans, the latter simply isn’t an option. 

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So, will 2018 be the year the Sedan died? I think not. Or, I should say, not yet. Toyota has unveiled a brand new Camry and Avalon, the Honda Accord just won car of the year (again) and a new Nissan Altima is coming soon, too. But there’s an unshakable feeling that, even though these sedans will be the best they’ve ever been this generation, this could be sort of a last hurrah for them, as crossovers continue to come in and eat their lunches.

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It’s not all sunshine and rainbows for crossovers either, though. A study released today showed that compact crossovers, some of the most popular vehicles, especially among young buyers, are among the fastest depreciating cars on the market, losing up to 1.18 percent of their value every week. It’s terrifying to think that you could go in and buy a Honda HR-V or Toyota C-HR or Mazda CX-3 or any number of the other alphanumeric-named, useless hatchbacks on stilts and find yourself a year later with a car worth just 39 percent what you paid for it 52 weeks ago. And the truth is, there’s no great advantage to these compact crossovers. They have less storage than the cavernous trunks of mid-sized sedans. They handle worse, usually have less powerful engines and generally all have obnoxious styling. But they’re hip and offer a slightly higher ride height, which allows you to see more of the road beyond the screen of your iPhone 10. Plus, they’re easier to park in these urban communities where I’m told the youth all live. 

So sure, things could turn around for the sedan, once people realize how poor these compact crossovers are both in terms of value and practicality. But at the rate sales are declining and sedans are being put out to pasture, by the time common sense catches up with buyers - by the time they realize that sedans really are enough car for virtually everything - it could already be too late.

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Authored by
Devlin RIggs