Archives for May 2016

Fuji Heavy Industries Rebrands as Subaru Corp.

May 17, 2016 by admin 1 Comment

Little known Fuji Heavy Industries to assume subsidiary’s well-known name.

Subaru WRX

Subaru WRX.

In 1953, Fuji Heavy Industries (Fuji) was formed, a company based on five companies originally derived from the Aircraft Research Laboratory (ARL), itself founded in 1917. Subaru is the Japanese name for the Pleiades star cluster, representing the six companies related to the Nakima Aircraft Company and last in the line of successors to ARL for establishing Fuji.

A few years after Fuji was formed, Subaru as an automotive manufacturer was launched and is arguably the best known of the parent company’s properties. Because few people are familiar with the Fuji name, the parent company decided to rebrand itself as Subaru Corporation, with that change coinciding with the company’s centennial next year, pending shareholder approval.

Subaru 360 Minicar

Fuji underwent multiple reorganizations early on, before settling on its latest name 36 years later. In 1958, the Subaru 360 minicar was introduced, the inaugural model in its automotive operation. Other key operations include aerospace and industrial products.

Subaru’s automotive business currently operates in more than 90 countries and the US market is far and away its most important one. By next year, Subaru anticipates it will crack the 1 million units per year sales mark for the first time, with more than half those sales in the US.

Subaru Forester

Subaru Forester.

Boxer Engines and All-Wheel Drive

Long lauded for its safety leadership and environmental stewardship, it is Subaru’s boxer engines and near universal application of all-wheel drive that sets this company apart from the rest.

The boxer design featuring horizontally opposed pistons is unusual, one also used by Porsche. Such engines mitigate vibration and have a lower to the ground center of gravity, providing improved handling as a result of the latter feature. As for all-wheel drive, all models except for the rear-wheel drive BRZ have this design, especially helpful when driving on slippery roads.

Making a Change

In a press statement discussing the pending change, Fuji said they would “continue to seek sustainable growth by offering Subaru’s distinctive value of “Enjoyment and Peace of Mind” to customers worldwide, pursuant to our management philosophy of aiming to be “a compelling company with a strong market presence built upon its customer-first principle”.

The name change means little to consumers, but everything to Subaru. You’d be hard-pressed to find examples of parent companies dwarfed in importance by a subsidiary. GM may also be an excellent example as its Chevrolet brand accounts for more than half its sales globally. That being said, don’t expect the entire operation ever to assume the Chevrolet mantle, as there is too much brand equity in Buick, Cadillac, Opel, and some other makes to warrant such a change.

Subaru Legacy 3.6R Limited

Subaru Legacy 3.6R Limited.

Leading-Edge Growth

Subaru’s automotive division growth, especially in the US, has been remarkable. From 2011 to 2015, brand sales surged by 45 percent, a pace matched only by Fiat Chrysler and a handful of emerging Chinese brands, according to Bloomberg.

That growth comes from plants located in Gunma, Japan, and in Lafayette, Indiana, the latter currently operating at full capacity. Fuji itself is 16.5 percent owned by Toyota, will soon quit producing Camrys. That effort will enable Subaru to dedicate the plant’s full 300,000 per year production capacity to meet the ever increasing demand for its product. At least for a while.

A Look Ahead

Other than the BRZ, all Subaru models are derived from one of two platforms based on either the compact Impreza or the midsize Legacy. The BRZ itself is underpinned by a Toyota platform currently utilized for the Scion FRZ and Toyota 86.

Soon, however, all future models except for the BRZ will share a common platform, allowing Subaru to enjoy significant economies of scale. In particular, all cars, crossovers, and electric vehicles will transition to the new platform beginning with the 2017 Impreza.

Subaru XV Crosstrek

Subaru XV Crosstrek.

See Also — On the Road With a Subaru XV Crosstrek

Cadillac House Serves Coffee, Not Cars

May 16, 2016 by admin 1 Comment

Grabbing a cup of joe in a setting featuring art and fashion collections is not a new concept to New York. Only this shop also offers a rotating assemblage of Cadillac models in an effort to raise brand awareness.

coffee beans

The next time you’re in New York, you may want to visit a certain coffee house where luxury cars are on display, but are not available for purchase. In particular, you’ll need to head to Tribeca in Manhattan to find the Cadillac House, where a concoction of coffee, art, and fashion is brewed to subtly woo people to GM’s luxury brand.

Cadillac House New York

Dubbed the “Cadillac House” and located on the first floor of the company’s headquarters at 330 Hudson Avenue in Manhattan, the coffee shop is yet another approach the automaker is taking to win new customers to the brand.

“We have tried to tell people what you’re supposed to feel from the Cadillac brand,” explained Cadillac’s brand director, Melody Lee, to Bloomberg. “But what we hadn’t quite fully established was an environment that you could walk into.”

Indeed, Cadillac has taken to Gotham in a big way since it established its headquarters there in early 2015. Last year, Cadillac revealed a multi-season affiliation with the Council of Fashion Designers of America (CFDA), backing the emerging New York Fashion Week: Men’s show.

Retail Lab and Joe Coffee

In April, Cadillac in cooperation with the CFDA opened the Retail Lab, a custom retail shop located on the ground floor of its headquarters. The shop features a rotation of designers who are provided with a unique opportunity to learn from the industry’s best while they’re supplied with space to learn the business in preparation for taking it to the next level.

You won’t be able to walk into the Cadillac House before June 2. Once opened, customers will find themselves surrounded by contemporary art, yet another area of non-automotive involvement for the brand. Art curated by Visionaire, the creative firm and magazine, plays an integral part of the ambiance for the cafe.

Joe Coffee, a well-known family-oriented enterprise with shops in New York and Philadelphia will supply the beans. “Joe” has earned a reputation for serving highly curated coffees, initially working exclusively with domestic and international roasters, before launching its own roasting operation in Brooklyn in 2013.

Cafe Hours, MOFAB, and More

Once opened, the Cadillac House will serve coffee Monday through Friday from 7 a.m. to 7 p.m., and again Saturday and Sunday from 10 a.m. to 7 p.m.

Cadillac isn’t the only luxury moniker utilizing an off-beat venue to indirectly hawk its wares. Last year, Infiniti backed the launch of MOFAB — the Museum of Food and Drink in Brooklyn. The Japanese luxury trademark even has its own exhibit, “Driven by the Senses,” where it invites visitors to get inside an Q50S before taking them through a virtual ride of four individual cities, stopping at noteworthy restaurants offering a behind-the-scenes look at how they prepare certain dishes.

With the luxury market growing and the competition strengthening, manufacturers are looking for every edge possible in a bid to win consumers. In Cadillac’s case, selling cars is not part of the equation, while creating an environment to positively reflect this 114-year-old brand is.

Recent — Key Facts Surrounding the Nissan-Mitsubishi Alliance

Wikimedia photo courtesy of Arnaud Gaillard.

Key Facts Surrounding the Nissan-Mitsubishi Alliance

May 13, 2016 by admin 3 Comments

Will Nissan help Mitsubishi bring a new face to the US market? Mitsubishi Lancer Final Edition

If you were one of those people concerned that the latest Mitsubishi scandal would do this automaker in, take heart: the company has been saved by a competitor and current collaborator, Nissan Motors.

On Thursday, the two Japanese automakers signed a Basic Agreement forming a strategic alliance between the two companies. To that end, Mitsubishi is issuing new stock shares, enabling Nissan to claim a 34 percent stake in the company. In effect, the move gives Nissan controlling interest in Mitsubishi, allowing the two automakers to cooperate on a new level.

Here are the key facts surrounding the Nissan-Mitsubishi Alliance:

Nothing comes cheap. Following Mitsubishi’s latest scandal (see The Rise and Fall of Mitsubishi), the parent company saw its valuation plunge by US$3 billion. Nissan is paying 237 billion yen or approximately $2.174 billion for a stake in its junior partner.

Other partners are present. Nissan will hold a large stake in Mitsubishi, but three other major stakeholders will also be present: Mitsubishi Heavy Industries, Mitsubishi Corporation and the Bank of Tokyo. Although all three yield much power, they’re expected to cede to Nissan’s wishes once the deal closes by year end. French automaker Renault is also tied in as part of the original alliance forged 17 years ago.

The current collaboration will expand. Greatly. The current Mitsubishi scandal started when Nissan disclosed that its partner fudged on the fuel economy for the tiny “kei” cars supplied to it by Mitsubishi. Later, it turned out that Mitsubishi had lied on all of its fuel economy figures, but not for cars marketed in the US. That’s a good thing too — with the EPA slapping and fining automakers such as Ford and Hyundai for exaggerating their fuel numbers and slamming Volkswagen for its own emissions scandal, it is doubtful Mitsubishi would survive a US-backed hit. Then again, is there another shoe about to drop here in the states?

It goes beyond cars. Building cars and sharing platforms are one thing, but other synergies are present. The automakers will share technologies, purchasing, jointly utilize plants, and collaborate in growth markets. How this relationship unfolds will yet be determined.

Mitsubishi is over as we know it. The alliance between the two manufacturers mean that Mitsubishi is effectively gone as an independent company. That doesn’t mean the Mitsubishi brand will fade away, but it does mean the two companies will cooperate on platform sharing. The cooperation will probably be heavily skewed to Nissan, except for the tiny cars it has bought and rebadged from Mitsubishi for the past five years.

The US market is in doubt. Platform sharing can mean Mitsubishi’s weak US offerings will go through a renewal. By accepting badge-engineered Nissan Versas, Sentras, and Altimas, along with a handful of SUVs, Mitsubishi may soon fill out its entire product line. But is that a good thing? Nissan doesn’t need to compete with itself, especially in the hard-fought, but profitable US market. Mitsubishi’s strength lies elsewhere, especially in emerging markets. Throwing in the towel in the US might be the best course of action to take, allowing Mitsubishi to follow Daihatsu, Isuzu, and Suzuki through the exits.

The Alliance is now the world’s fourth-largest automaker. Cars sold by Nissan, Renault, and Mitsubishi currently account for 9.6 million units annually, putting this group immediately behind the top leaders. Toyota is still on top with 10.1 million units sold in 2015, followed by Volkswagen at 9.9 million and General Motors at 9.8 million. What an amazing turn around from the late 1990s, when Nissan was on life support and Renault jumped in with a rescue plan.

Is Further Consolidation Possible?

With Nissan snapping up Mitsubishi and Toyota completing its acquisition of Daihatsu, the global auto industry is seeing consolidation continue. Fiat Chrysler wants a partner, but there are no takers. Still, if the right alliance is forged, then even FCA may soon find itself in the arms of a new suitor.

See Also —- Isuzu, Toyota Part Ways…Sort Of

Stabilizing Fuel Prices: Good News in Advance of Summer

May 12, 2016 by admin Leave a Comment

Motorists can expect lower fuel costs this summer driving season.

Ford Transit

Drivers should face less costly fill ups at gas pumps this summer.

Fuel prices may finally have begun to stabilize after reaching the highest prices we have seen in six months earlier in May. Refineries have increased production to meet record-high demand and that effort has forced gas prices down earlier this week by one penny to a national average of $2.21 a gallon according to AAA.

The price stabilization is welcome news for consumers as Memorial Day weekend arrives in two weeks, signaling the unofficial start to summer. At $2.21 per gallon, fuel prices have risen by 17 cents in May alone, but the average remains 45 cents cheaper than this time last year.

Record Gas Stock

According to the United States Energy Information Agency, gasoline stock is at the highest level since the start of May, setting a record. AAA expects drivers to take to the road this summer at levels not seen since 2007, the last year before the onset of the Great Recession. As long as supply keeps up with demand, fuel prices should remain relatively stable throughout the summer months. This is good news for consumers and should benefit the economy, especially the hospitality industry.

As always, fuel prices vary across the country with California ($2.80) currently with the highest averages followed by Hawaii ($2.64), Washington ($2.49), Nevada ($2.48), and Alaska ($2.46). Fuel prices are now above $2 per gallon in most locations, although Oklahoma ($1.95), Kansas and Missouri ($1.98), and Texas and Arkansas ($2.00) are currently at or below that threshold.

Regional Differences in Fuel Prices

Although historically coming in much higher than the rest of the nation, the western states have seen some of the largest year-over-year drops in fuel prices. California drivers currently are saving 91 cents per gallon to 73 cents for Nevada. Alaska drivers are saving 69 cents at the pump on average to 60 cents in Oregon. Meanwhile, Hawaii drivers are paying 59 cents per gallon less, while Arizona drivers are enjoying a reprieve of 55 cents per gallon on average.

Increasing demand on the west coast may put pressure on prices moving forward, but relief is on the way. Indeed, AAA says ExxonMobil’s Torrance, California, refinery should come back on line later this month once it restarts its fluid catalytic cracker and related gasoline production units.

Other regions are benefitting in various ways too. The Gulf Coast continues to enjoy the lowest fuel prices in the nation as the area benefits from a greater concentration of refineries. In the Midwest, prices are more volatile as the region deals with the twin challenges of increasing demand and heavy refinery maintenance.

On the East Coast, refineries coming back online have helped keep up with demand, although some of the highest costs in the nation are found in that area with Pennsylvania averaging $2.40 per gallon to $2.38 per gallon for New York.

Get Road Ready

As always, prepare your car for the road ahead, especially for those long trips that will take you far from home.

Pull out your maintenance schedule, taking care of all due items before you leave. Even if something isn’t due for another 1,000 or 2,000 miles — such as tire rotation — get this done now. The last thing you want is an incident or accident resulting from neglected maintenance.

If you belong to a roadside assistance club, verify that your information is current. Carry with you your card, download an app, and check that your account is active. Lastly, go through your emergency kit to ensure jumper cables are present, as well as all tools, a working flashlight with extra batteries, flares, cloth, and other items. You can build a kit yourself or buy one preassembled.

The 2017 Honda Ridgeline by the Numbers

May 11, 2016 by admin 5 Comments

Following a two-year hiatus, the Honda Ridgeline crossover pickup truck returns.

Beginning in 2006, Honda sought to turn pickup truck convention on its head, by building a car-based model. Early on, sales were quite strong as the Honda Ridgeline siphoned sales from competitors while also attracting a new breed of truck shoppers.

But those initial sales were not sustained. In fact, they began to fall drastically, then after nine years the Ridgeline was discontinued. However, the end was far from final as Honda had a new model in mind. Today, Honda offers the 2017 Ridgeline, an all-new second-generation midsize model in an effort to recapture customer interest. To that end, we’ll examine the important “numbers” defining this model.

4 — Four is the number of doors found on every Ridgeline pickup truck. Four also represents the number of feet between wheel arches in the pickup truck bed, allowing customers to flat haul drywall and plywood. No other midsize pickup truck can boast such a broad width.

19/26/22 — Fuel efficiency and pickup trucks are a tough combination. Few people buy them with maximizing fuel efficiency a top priority, but if your truck isn’t making at least 20 mpg, then you may be in for a world of hurt. For the first time, Honda is offering a front-wheel drive Ridgeline, EPA-rated at a respectable 19 mpg in the city and 26 miles per gallon on the highway, for a combined 22 mpg. Choose all-wheel drive and you’ll see those numbers drop by 1 mpg. The Ridgeline’s numbers are particularly impressive, given that the 2016 Nissan Frontier with a 2.5-liter, four-cylinder engine delivers 17 mpg in the city and 23 mpg on the highway. By the way, a 19.5-gallon fuel tank is present in the 2017 Ridgeline.

210 — The 2017 Ridgeline is longer, wider and taller than the outgoing model. It measures 210 inches from stem to stern or 3.1 inches longer than the previous model. The big gain is found between the wheels — this model has a 125.2-inch wheelbase, the first-generation Ridgeline was 122 inches long between the wheels. That’s more interior room, making this truck better suited for some owners. The Ridgeline is 78.6 inches wide (a 0.8 increase) and 70.8 inches tall (for a gain of 0.5 inch). Four inches were also added to the bed length, now measuring 64 inches or 5-feet, 4-inches.

280 — The previous Ridgeline made 250 horsepower and 247 foot-pounds of torque, respectable numbers both. The latest edition should be a crowd pleaser as it makes 280 horsepower and 262 foot-pounds of torque. Of big benefit are two things: a new 3.5-liter, direct-injected V-6 engine, variable torque management, and a 6-speed automatic transmission. This combination enables the current Ridgeline to achieve better acceleration and improved fuel economy over the previous model.

400 — The number of watts in the Ridgeline’s AC power inverter is 400. Not only that, but the inverter is part of the first in-bed audio system found in any pickup truck. The inverter is located behind an access panel found in the right bed wall and works with six exciters placed in the bed walls, replacing conventional speakers. The inverter has the capacity to recharge power tools or provide energy for a flat-screen television or a blender. Tailgate parties, anyone?

1,584 — Payload capacity is a big deal with truck buyers. After all, if you can hold ‘em and haul it, then you’re not in the game. The payload numbers come in at 1,584 pounds or 38 pounds more than the old Ridgeline. Comparatively, the GMC Canyon payload is 1,410 to 1,600 pounds; the Chevrolet Colorado offers 1,370 to 1,630 pounds; Toyota’s Tacoma ranges from 1,120 to 1,620 pounds; and the Nissan Frontier ranges from 919 to 1,475 pounds. Clearly, Honda’s engineers did their homework.

5,000 — The main area where the Ridgeline is clearly outclassed by competitors is in towing. Choose the RT AWD model and you’ll hit this truck’s 5,000-pound towing capacity. That’s still a robust number and it matches the earlier Ridgeline. Of course, for truck shoppers in this segment needing more pulling power, then the Chevrolet Colorado and GMC Canyon at 7,000 pounds, Nissan’s Frontier at 6,500 pounds, and the Toyota Tacoma at 6,400 pounds towing capacity may be too hard to pass up.

29,475 — The starting price for the 2017 Honda Ridgeline is $29,475. Yes, that’s right: nearly $30,000 for this midsize truck. Available in RT, RTS, Sport, RTL, RTL-T, RTL-E, and Black Edition trims, the top end model will reach just above $42,000. That’s a lot of moolah for a truck in this class. Shoppers looking for value in this segment will have to look elsewhere. A base Nissan Frontier king cab is the price leader here, starting at $18,290. The comparable-to-the-Ridgeline Frontier crew cab starts at $23,500 or nearly $6,000 less than the Honda. Price creep in recent years has made affording a smaller pickup truck more difficult for buyers. Although segment sales are strong, you have to wonder if Honda’s base price is simply too high.

(See Also — Ram Gets a Midsize Pickup Truck)

Honda Ridgeline: Beyond the Numbers

Numbers only tell you part of the story about any vehicle. There are a lot of features about this truck that simply cannot be numerically quantified.

One feature making a return is the nifty in-bed trunk that has always played an important part of the Ridgeline ownership experience. The new model comes with a fully flat floor and as before it is drainable and lockable. Speaking of the bed, it comes with eight 350-pound tie-down cleats.

As for the tailgate, it is a dual action layout as it is hinged both on the left side and on the bottom, making it easier to reach, load, and unload heavy items.

Photos courtesy of Honda Motors America.

No New Buick Verano for US Market

May 10, 2016 by admin 4 Comments

Buick’s entry-level model is on its way out.

An all-new Buick Verano is currently being marketed in China, but plans for the second-generation compact premium sedan do not include offering it in the North American market.

Automotive News reports that the entry-level sedan will not be renewed after the 2017 model year, leaving Buick’s US operation with just two sedans, a convertible, and a bevy of SUVs in the brand’s portfolio.

New Cruze, No New Verano

The front-wheel drive Buick Verano is underpinned by the same platform powering the Chevrolet Cruze, itself updated this year. The Verano’s main competitors are the Acura ILX and Lexus IS 250, and nearly 32,000 American consumers bought the small Buick last year.

Buick Verano Nevertheless, Buick sees its future following the consumer shift to SUVs, and is bringing the compact Envision SUV from China to augment the subcompact Encore and the midsize, three-row Enclave SUVs. Further, because most Buick and GMC dealers are sold under one roof, customers also have easy access to two lines of pickup trucks as well as four lines of GMC SUVs.

With customers no longer having access to the Verano, Buick dealers will have their work cut out for them when leases renew and owners trade in. Entry-level Buick shoppers may be redirected to the tiny Encore or the midsize Envision, the latter expected to generate 50,000 sales per year. Come 2018, the smallest sedan will be the Regal. The Buick Cascada is similarly sized, but it is a niche 2+2 convertible.

Wholesale Shift to Trucks & SUVs

GM’s decision to walk away from the Verano follows April’s sales figures release. Last month, Verano sales fell by 18.8 percent and are down by 11.7 percent through the first four months of this year. Sales of its large LaCrosse sedan are down by 21.7 percent, but Regal volume is up by 13.5 percent.

Buick’s strength remains in SUVs as the Encore is by far its best selling model, followed by the Enclave. Looking forward, Buick expects SUVs to generate 70 percent of its volume, enabling the brand to meet customer demand, but not without some risk.

That risk is based largely on fuel prices, what plays a significant role in consumer purchase decisions. When fuel prices are high, new car buyers avoid large SUVs and consider smaller models, including compact cars.

Sales Mix Among American Manufacturers

Indeed, among the traditional American manufacturers — GM, Ford and Fiat Chrysler (FCA)— car sales fell by 11 percent in 2015, while demand for pickup trucks and SUVs surged by 15 percent according to the International Business Times.

In 2015, FCA truck/SUV sales surged by 22 percent, while car sales plunged by 19 percent. GM, including Buick, realized a 16 percent increase in truck/SUV sales to a 14 percent drop in car sales. Ford has the narrowest change of all as truck/SUV sales rose by 8.3 percent, while car sales fell narrowly by 0.9 percent.

The Fuel Price Factor

In recent months, fuel prices have slowly, but steadily risen. That ascent may be seasonal as gas prices routinely rise as the summer driving season begins. The US Energy Information Administration has forecast an average price of $2.04 per gallon for the summer driving season (April-through-September) compared with $2.63 per gallon last year.

Both numbers are far lower than the $4.11 per gallon peak reached in July 2008. By January 2009 fuel prices averaged $1.84 per gallon, rising and falling since.

A big advantage for Buick lies in its ability to shift products quickly, if needed. Given that the second-generation Verano is sold in China, readying that model for the US market shouldn’t take long if consumer trends shift. That means we may not have seen the last of Buick’s smallest model as well as perhaps an all-new flagship sedan based on the Avenir concept.

Recent — On the Horizon: A Front-Wheel Drive Chrysler 300?

On the Horizon: A Front-Wheel Drive Chrysler 300?

May 9, 2016 by admin 2 Comments

What could this mean for the Dodge Charger and Challenger?

2015 Chrysler 300

The next-generation Chrysler 300 may switch to a FWD platform.

The days for the current Chrysler 300 are numbered.

Introduced in 2005, the second-generation 300 bowed in 2011, offering dimensions only slightly longer and wider than the first-generation model. Now in its sixth model year, the current Chrysler 300 is showing its age — plans for its replacement are underway.

What may follow could stun enthusiasts, especially if parent Fiat Chrysler elects to place the large sedan on the same front-wheel drive platform underpinning the all-new Chrysler Pacifica minivan. If FCA utilizes Pacifica architecture to support the third-generation 300, it’ll offer optional all-wheel drive, just as it does today.

News of the 300’s possible successor was shared by FCA Chief Executive Officer Sergio Marchionne with reporters at the company’s manufacturing plant in Windsor, Ontario, on Friday reports Reuters. Marchionne was on hand to thank workers for launching the Chrysler Pacifica, representing a $2.6 billion investment in its minivan line.

That investment may never be recouped unless other models are derived from the platform. One of the models thought possible was a Dodge SUV variant — either to replace the current Durango or to supplement it.

2016 Dodge Dart

A replacement for the current Dodge Dart is still open.

Front-Wheel Drive Architecture

Moving to front-wheel drive architecture aligns with the approach Chrysler’s competitors have long taken, including the Ford Taurus, Chevrolet’s Impala, and the Toyota Avalon. Of the three, only the Taurus offers available all-wheel drive — the possible Chrysler approach is also one Audi takes, but the latter’s market is the luxury segment.

Mention “Chrysler 300” and two other models come to mind: Dodge Charger and Dodge Challenger. The current Dodge sedan and coupe share nearly everything with the Chrysler, including the platform and most major components. One difference is found in the Hellcat lines as these are unique to Dodge and have effectively placed a lucrative halo over each one.

Marchionne’s pronouncements typically provide reporters with enough fodder to keep FCA in the news, while omitting some information about related products, brands, and production facilities.

Chrysler and Dodge Separation?

Although long tied at the hip, there is nothing written in the FCA playbook that the Chrysler 300 and its Dodge cohorts must continue on the same path. Indeed, Chrysler is now a mainstream brand, while Dodge represents its performance brand.

Thus, the next-generation Dodge Charger and Challenger might continue as is or adopt an Alfa-based rear-wheel drive platform as reported by Automotive News last August. The new platform should yield a third Dodge model, Barracuda (‘Cuda), a sport coupe convertible.

Rumors that FCA might eventually kill off Dodge seem like just that — although the Dart in its current form is doomed (as is the slightly large Chrysler 200), other models such as Viper, Charger, Challenger, ‘Cuda, Durango, and the eventual replacement for the Journey should keep this brand relevant.

2015 Chrysler 200

Chrysler 200 production is winding down.

Other FCA Products and News

The 300’s future isn’t the only FCA news of late.

The next-generation Jeep Wrangler may get a twin-turbocharged, four-cylinder engine making 300 horsepower, supplementing the standard 3.6-liter, V-6. Further, production of the all-new Ram 1500 pickup truck will begin by Jan. 2018.

Production of the Dodge Dart will cease by year’s end as the Belvidere, Illinois plant where it is produced is converted to build the Jeep Grand Cherokee, now built in Toledo, Ohio. Ohio production will focus primarily on the next Wrangler as well as a Jeep-based pickup truck. Also, just as the company’s Sterling Heights, Mich., plant loses the Chrysler 200 by early next year, it will be retooled to supplement future Ram 1500 capacity.

As for the Dart and 200, Marchionne is still holding out hope that a partnership with another manufacturer to build replacement models will happen. Those models would be based entirely on a competitor’s technology. For example, Volkswagen Jetta and Passat models might be tapped and rebadged as the Dart and 200 respectively, although there has been no mention VW is even considering such a relationship.

Chrysler, Google Project: Start of Something Big?

May 6, 2016 by admin 2 Comments

If Fiat Chrysler is looking for a partner, it may do well to look outside of the auto industry.

2017 Chrysler Pacifica Hybrid — The Chrysler Pacifica Hybrid (plug-in) will be retrofitted with Google self-driving technologies.

If Fiat Chrysler is looking for a partner, it may do well to look outside of the auto industry.

CEO Sergio Marchionne’s overtures to GM and Ford have been rebuffed. Other manufacturers have shown no signs of interest. By all accounts, FCA’s long-term survival may mean teaming up with a larger player or at least with a company possessing both the technical expertise and the deep pockets to make it happen.

Enter Google.

The Google Self-Driving Car Project gives the tech giant access to a modern vehicle, in particular a plug-in hybrid electric vehicle (PHEV) and one that aligns perfectly with its earth-friendly business philosophy. The Google group will purchase 100 2017 Chrysler Pacifica minivans this year, outfit them with Google self-driving technology, and test them. It represents one part of Google’s plan to make autonomous driving a reality.

See Also — Up Next: Ford-Volkswagen Tie-up?

This effort alone will more than double Google’s current self-driving fleet, one that has been in operation for more than seven years and has logged in excess of 1.5 million miles. Clearly, Google has a leg up on the competition with its autonomous technology. Google has already been testing a car it has built, but few believe that the prototypes are suitable for production.

Aligning with an automaker allows Google to concentrate on what it does best. For the car manufacturer, in this case, Fiat Chrysler, it allows the automaker to glean much data from the experience. At some point, autonomous vehicles will become a reality. By sharing technology and the overall vision that goes with it, both companies benefit.

The FCA-Google agreement doesn’t preclude either company from working with competitors. Indeed, FCA might also reach out to Apple, another tech giant wading into the self-driving sphere. At the same time, Google can approach other car manufacturers. Nevertheless, if the Google-FCA partnership works well, both companies will get to know each other better than had they never forged a relationship — it is a great chance for the two to consider further collaboration, perhaps even a merger.

Laugh all you want, but FCA has much equity in products such as Jeep and Ram trucks. A Google-backed FCA would be a powerful force in autodom.

Marchionne has certainly received criticism for shopping FCA, almost as soon as the Fiat-Chrysler consortium was finalized. It is a running joke in this business that when Sergio comes looking, all suitors flee. Cartoons, articles, and Internet chatter have poked fun at the CEO and his efforts. At the same time, FCA workers are feeling not a little bit spooked that they may come in at the short-end of any merger.

Google may be the best bet for FCA, given a lack of viable automaker partners. Things could be worse — Google could have turned to any other manufacturer, but FCA made it plainly known where they stood and held out the invitation. It is an opportunity of the moment and both companies will make it happen.

There are still many roadblocks to overcome before autonomous vehicles become a reality. State and federal laws must be met. And then there is the very real problem of hacking. Worse, Islamic State (ISIS) technicians are reportedly working on weaponizing self-driving cars. What clearly should be made for good has an evil flip side.

Google partnering with FCA makes it easier for the tech giant to gain some much-needed credibility in all things transportation. Even if the initial collaboration leads to nothing deeper, Google will have access to the same regulators that FCA knows very well. This demonstrates Google’s commitment to the market and makes it easier for the company to tout what it knows.

The tech-automotive manufacturer convergence has been underway for many years. Ever since Microsoft and Ford teamed up in 2008 to place a SYNC interface in the Ford Focus, all car manufacturers have pursued similar relationships. And by teaming with tech giants, the cost of developing complicated systems is shared and the synergies produced by cooperating may very well bring a number of futuristic technologies to the market faster.

See Also — Apple’s Project Titan Autonomous Car

A Buyer’s Market for New Cars

May 5, 2016 by admin Leave a Comment

How to buy a vehicle in any market.

New car sales remain strong, but one thing we are seeing more of this year than in recent years are deep discounts and other incentives to lure customers. Although most deals aren’t rivaling anything we have seen since the last recession, automakers aren’t all that willing to cede marketshare in good times.

It is a buyer’s market for new car shoppers. Here’s how to find a deal you can live with:

1. Know what you want. Determine the type of vehicle you want and then narrow it to a specific make and model. The narrower your search, the easier it is to do your research. This means choosing the trim level you want, right down to the amenities — power accessories, infotainment system, safety features, you name it. Allow your parameters to guide you and you’ll be satisfied with your new ride.

2. Shop online. There is no need to visit a dealership to make your deal. Save your visits to only test drive a vehicle or to finalize your already negotiated purchase. Typically, you can find what you want by shopping online, negotiating with the dealer’s web sales department to get your price. Next, repeat the process at one or two other dealers, then have the dealers battle for your business. The more competition for your business, the better the savings for you.

3. Arrange your own financing. Unless the manufacturer is pushing 0 percent financing, you can usually find better financing elsewhere. Credit unions are especially good at offering low-rate financing, particularly if your credit is excellent. When you bring in your own financing, you can claim the other incentives instead, such as cash back, a military or student discount, or some other incentive.

4. Discuss new car price, then talk trade-in. Don’t allow a salesperson to attempt to bundle your trade-in with your new car negotiation. These are separate deals. First, negotiate the best price for your new car. Second, when it comes to down payment talk, introduce the trade-in as the down payment. Understand your car’s worth by using a service such as NADAGuides.com or Kelley Blue Book to value your vehicle.

5. Review all fees. You’ll be hit with an assortment of car closing fees, adding hundreds, perhaps thousands of dollars to your final price. Sales tax, title and registrations, destination charge and documentation fee are not avoidable — you will have to pay these. Expenditures you can avoid include a dealer preparation fee, credit life insurance, disability insurance, VIN etching, rustproofing, and paint sealant. Additional dealer markup may be hard to avoid, especially if you’re buying a strong selling model. As for that advertising charge, see if the dealer will waive it. Examine your sales contract carefully to determine what fees are charged. Ask for an explanation for anything you may not understand.

6. Finalize your deal. With your best deal negotiated, financing in place, and a trade-in or cash down (preferably both), you’re ready to finalize the deal. It is extremely important for you to know what your monthly payments will be and whether you can afford those payments. Don’t sign the deal without having a discussion with your auto insurer first — you may be unpleasantly surprised to discover you can’t afford the insurance. If so, you’ll need to look for a different insurer or a different car.

A Buyer’s Market

Timing your purchase can help your cause too, especially if you strike a deal as the month comes to a close. Sales people and dealers rely on incentives from the manufacturer to sell “X” number of vehicles each month. This tactic can work well and might be utilized instead as both the model year and the calendar year come to a close.

See Also — Right Now: Lease a New Car

The 2017 Jaguar XE by the Numbers

May 4, 2016 by admin 2 Comments

The Jaguar XE is the latest model in this big cat’s repertoire.

Not since Jaguar retired the X-TYPE in 2009 has it had a compact sedan to take on the BMW 3 Series and like luxury models. That earlier vehicle was outperformed in an ultra-competitive segment and simply didn’t have the kind of rear-wheel drive architecture prized by most buyers. The 2017 Jaguar XE changes that, a rear-wheel drive model available with all-wheel drive. To that end, we’ll take a look at the important “numbers” defining this model.

2 — Two represents the Roots-type twin vortex supercharger mounted to the V of the engine. It is joined by a water-cooled intercooler designed to reduce the temperature of the intake air in an effort to improve power and efficiency. The supercharger is controlled by a Bosch engine management software package. The V-6 engine gets a supercharger; the two four-cylinder engines are boosted by turbochargers.

3 — Jaguar has three engine choices for the XE, including a late-arriving turbo-diesel. A supercharged 3.0-liter, V-6 is the performance leader, making 340 horsepower and 332 foot-pounds of torque. Next up is a turbocharged 2.0-liter, four-cylinder engine making 240 horsepower and 251 foot-pounds of torque. If you can wait a bit longer, the 2.0-liter, turbo-diesel “four” may be worth your while — it makes 180 horsepower and 318 foot-pounds of torque. All three engines are paired with a ZF 8-speed automatic.

5 — Five or 5.0 is the top 0-to-60 mph time for this sedan. You’ll reach that threshold if you have an all-wheel drive XE powered by the supercharged V-6. If you prefer rear-wheel drive, no sweat: you’ll get to 60 mph in 5.1 seconds. Five, by the way, is the number of people who can ride in the Jaguar XE.

101 — Automakers are busy finding ways to reduce their impact on the environment through various design and light-weighting schemes. Jaguar is doing its part by incorporating 101 pounds of recycled materials, including plastics and renewable materials. Depending on the model chosen, the 2017 XE weighs anywhere from 3,320 to 3,795 pounds.

304 — Jaguar has never made an engine lighter than the upcoming gasoline four-cylinder, weighing just 304 pounds. Lift the hood of the XE and you’ll see it oriented longitudinally and paired with the same ZF 8-speed automatic now common to the Jaguar brand. Further weight savings were gained by riveting and bonding.

825 — Two Meridian audio system packages are available. Most buyers will probably be satisfied with the 380-watt, 11-speaker audio system, tailored to the interior’s acoustics. However, audiophiles may be drawn to the 825-watt, 14-speak system equipped with stereo and surround sound processors.

$34,900 — Affording a luxury sedan typically means starting off at a high price point and going from there. Jaguar pegs the base XE at $34,900, what delivers a rear-wheel drive 25t edition powered by a turbocharged, four-cylinder gasoline engine. Choose the 20d and you’ll pay only $1,500 extra for the turbo-diesel. The top-of-the-line 35t is powered by the supercharged V-6 engine and retails from $41,700. R-Spec models will drive the final cost up to about $50,000. Jaguar’s aggressive pricing may attract mainstream midsize sedan owners, giving customers a logical entry-point to the brand.

60,000 — All 2016 and later Jaguars are now covered by a 5-year or 60,000-mile new vehicle limited warranty. That’s up from the previous 4-year, 50,000-mile warranty offered in 2015 and earlier years. For the same length, Jaguar offers complimentary scheduled maintenance and ‘round the clock roadside assistance.

Jaguar XE: Beyond the Numbers

Besides the hard numbers, Jaguar is intent on informing prospective customers that the XE is a well-equipped and artistically designed sedan. Interiors are dressed in fine-grain leathers with twin-needle stitching. Gloss black, textured aluminum, and contemporary wood veneers are also present. Customers will have a choice of 10 colors.

On the technology front, the Jaguar XE comes with InControl Touch, with an 8-inch capacitive touchscreen. The system supports Bluetooth, audio streaming and USB connectivity. Laser head-up display (HUD) technology is available as is an autonomous emergency braking system utilizing stereo camera technology. Lastly, adaptive cruise control, close vehicle sensing, blind spot monitoring, parking assist, and reverse traffic detection are also available.

If a larger sedan is to your liking, Jaguar has the midsize XF and the full-size XJ. There’s also the delicious F-TYPE sports car and if an SUV is your thing, the first-ever Jaguar F-PACE is yet another model to consider.

See Also — The 2016 Chevrolet Cruze by the Numbers