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 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