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Highlights of the 2018 Volvo Product Reveal

August 23, 2017 by admin 3 Comments

Updated Sept. 5, 2017, to reflect specification changes.

Rejuvenated Volvo gains marketshare.

2018 Volvo S90
Volvo’s flagship sedan just got a few inches longer.

Volvo Cars continue to transition away from old platforms and powertrains, to new and updated models powered exclusively by four-cylinder gasoline engines, including some paired with electric motors.

For 2018, several changes are evident, with most of the new vehicles already available in dealer showrooms. We’ll look at these changes, what they mean for consumers, and how the Swedish automaker stacks up against other premium brands.

2018 Volvo S90

One year removed from its introduction, the large Volvo S90 sedan benefits from an important change. In particular, the stretched wheelbase version — not previously available in the United States and Canada — becomes the sole offering in both markets.

What this means for passengers, especially people fortunate enough to sit in the rear seat, is excellent legroom. That space is now approaching what you would find in stretched wheelbase sedans from Audi, BMW, and Mercedes-Benz. What’s also noteworthy is that the starting price of the big Volvo is under $50,000.

There are additional changes for 2018, including adding a rear window power sunshade, rear side window sunshades, rear passenger seat control (of the front passenger seat), and a luxury center armrest. A panoramic roof is now standard, an all-wheel drive option comes to the base model, and a T8 plug-in hybrid model joins the line.

Check out my full review of the 2017 S90 to learn more.

2018 Volvo S90
Volvo “T8” models are plug-in hybrids, such as the S90 T8.

 2018 Volvo S90

  • Priced from $48,100 (T5 FWD Momentum)
  • Maximum price $68,150 (T8 E-AWD Inscription)
  • Seats 5
  • Engine No. 1: 2.0-liter turbocharged I4 gas
  • 250 horsepower @ 5,500 RPM
  • 258 foot-pounds of torque @ 1,500 to 4,800 RPM
  • Engine No. 2: 2.0-liter supercharged & turbocharged I4 gas
  • 316 horsepower @ 6,000 RPM
  • 295 foot-pounds of torque @ 2,200 to 5,400 RPM
  • Engine No. 3: 2.0-liter supercharged & turbocharged I4 gas
  • Total 400 horsepower
  • 8-speed automatic transmission
  • Wheelbase: 120.5 inches
  • Length: 200.1 inches
  • Width: 79.5 inches
  • Height: 57.1 inches
  • Passenger volume: NR
  • Storage volume: 13.5 cubic feet
  • Towing capacity: NR
  • EPA: 22/31 mpg city/highway
  • Premium gasoline
  • Fuel tank: 13.2 (T8)/15.9 gallons
  • Curb weight: From 3,913 pounds
  • IIHS safety rating: Top Safety Pick (2017)
  • Limited vehicle warranty: 4 years/50,000 miles
  • Powertrain warranty: 4 years/50,000 miles
  • Corrosion warranty: 12 years/unlimited miles
  • Vehicle assembly: Daqing, China

2018 Volvo V90 and V90 Cross Country

Wagon fans everywhere are rejoicing as the 2018 Volvo V90 and V90 Cross Country roll out. The new models are derived from the S90’s platform, but there are some differences with the specifications.

Just so you know, the difference between the V90 and V90 Cross Country is one inch. That is, the V90 CC has an extra inch of ground clearance for what Volvo says is meant for consumers who “pursue an active lifestyle.” Parsing the marketing language means little more than a slightly elevated presence — certainly not as tall as the similar XC90, but supplying slightly better sight lines than the standard model.

2018 Volvo V90
If you can’t decide between a sedan and a crossover, there is always a wagon.

No, you won’t attempt serious off-roading with this model either, as it doesn’t have true skid plates and other protective underbody gear, nor is there a transfer case present for low-range gearing. Gravel roads? Yes. Fording streams or climbing rocks? Not recommended.

What may appeal to V90 shoppers regardless of which model they choose is the roomy cargo space behind the second-row seat — 69 cubic feet, to be precise. Fold down the second-row seat and that space extends further, although Volvo hasn’t released the measurements.

The V90 is very similar to the standard wheelbase S90, at least in the passenger compartment. This means five can ride in comfort with the wagon supplying the cargo space some shoppers prefer, especially those who don’t want a crossover.

2018 Volvo V90

  • Priced from $49,950 (T5 FWD R-Design)
  • Maximum price $57,950 (T6 AWD Inscription)
  • Seats 5
  • Engine No. 1: 2.0-liter turbocharged I4 gas
  • 250 horsepower @ 5,500 RPM
  • 258 foot-pounds of torque @ 1,500 to 4,800 RPM
  • Engine No. 2: 2.0-liter supercharged & turbocharged I4 gas
  • 316 horsepower @ 6,000 RPM
  • 295 foot-pounds of torque @ 2,200 to 5,400 RPM
  • 8-speed automatic transmission
  • Wheelbase: 115.8 inches
  • Length: 194.4 inches
  • Width: 74.6 inches
  • Height: 58.1 inches
  • Passenger volume: NR
  • Storage volume: 53.9 cubic feet
  • Towing capacity: NR
  • EPA: 22/31 mpg city/highway
  • Premium gasoline
  • Fuel tank: 14.5/15.9 (T6) gallons
  • Curb weight: From 3,913 to 4,169 pounds
  • IIHS safety rating: NR
  • Limited vehicle warranty: 4 years/50,000 miles
  • Powertrain warranty: 4 years/50,000 miles
  • Corrosion warranty: 12 years/unlimited miles
  • Vehicle assembly: Torslanda, Sweden

2018 Volvo XC60

2018 Volvo XC60
Thor’s hammer is evident on this 2018 Volvo XC60.

The XC60 is a familiar name to Volvo fans, a small crossover introduced in 2010 (check this). For 2018, the XC60 is all-new with improvements equaling what’s found in the very popular XC90.

For starters, you’ll immediately notice the “Thor’s hammer” headlamp lighting treatments, current to all new Volvo models. The look accents a handsome, even aggressive nose, giving this Volvo a clean, polished appearance.

Front to rear, the new XC60 appears more evocative than the previous model, with muscular wheel arches, pronounced body sculpting, and a slightly rising beltline. That beltline sweeps up at the end, drawing attention to the rear roof pillar. At the rear, you’ll find the expected angular tail lamps, sentry-like exclamation points on either side of the liftgate.

Wheel choices include 19-, 20- and 21-inch alloy designs. All models have a panoramic moonroof with a power sunshade, integrated aluminum roof rails, power-controlled and heated side mirrors, and dual round tail lamps.

2018 Volvo XC60
A new Sensus infotainment system punctuates the XC60’s cabin.

The XC60’s interior is beautifully laid out, with natural materials such as wood, leather, and metal used liberally throughout. Great care was taken to craft a cabin that is both pleasing and luxurious, Clearly, the new XC60 successfully matches what its competitive set offers, namely the Audi Q5, BMW X3, Lexus NX, and Mercedes-Benz GLC.

The standard equipment list is lengthy and includes a 12.3-inch digital drive instrument panel display with navigation, a 9-inch touchscreen display with Apple CarPlay and Android Auto, dual-zone climate control, and 10-way power front seats.

Customers may upgrade from standard leather seats to Nappa leather and driftwood inlays. For a price you can upgrade from the standard 10-speaker, 330-watt audio system to a 1,100-watt, 15-speaker Bowers and Wilkins audio system. What’s that price? How does $3,200 sound? Other upgrades include a convenience package ($2,000 or $2,200, depending on trim), an advanced package with upgraded lighting and head up display ($1,900).

When all is said and done, figure that your final price will fall somewhere between $45,000 and $50,000. Choose the hybrid and you’ll pay a few thousand dollars more after taking an available $5,002 federal tax credit.

2018 Volvo XC60

  • Priced from $41,500 (T5 AWD Momentum)
  • Maximum price $56,700 (T8 e-AWD Inscription)
  • Seats 5
  • Engine No. 1: 2.0-liter turbocharged I4 gas
  • 250 horsepower @ 5,500 RPM
  • 258 foot-pounds of torque @ 1,500 to 4,800 RPM
  • Engine No. 2: 2.0-liter supercharged & turbocharged I4 gas
  • 316 horsepower @ 6,000 RPM
  • 295 foot-pounds of torque @ 2,200 to 5,400 RPM
  • Engine No. 3: 2.0-liter supercharged & turbocharged I4 gas
  • 313 horsepower @ 6,000 RPM
  • 295 foot-pounds of torque @ 2,200 to 5,400 RPM
  • 400 total system horsepowerr
  • 8-speed automatic transmission
  • Wheelbase: 112.8 inches
  • Length: 184.6 inches
  • Width: 78.7 inches
  • Height: 65.3 inches
  • Passenger volume: NR
  • Storage volume: 29.7/68.7 cubic feet
  • Towing capacity: 5,291 pounds
  • EPA: 22/28 mpg city/highway (T5)
  • Premium gasoline
  • Fuel tank: 18.8(T5); 13.2 (T6 & T8) gallons
  • Curb weight: 3,922/4,045/4,599 pounds
  • IIHS safety rating: NR
  • Limited vehicle warranty: 4 years/50,000 miles
  • Powertrain warranty: 4 years/50,000 miles
  • Corrosion warranty: 12 years/unlimited miles
  • Vehicle assembly: Torslanda, Sweden

Volvo On Track

Volvo invited automotive media to an event where the three models were showcased and available for driving. Company representatives indicated that Volvo is on track to reach where it needs to be, delivering new vehicles with updated technologies, state-of-the-art styling, and leading-edge safety features.

We also learned that Volvo Cars is happy with its relationship with parent company Geely, a Chinese concern that’s given the company much free range. Some models now sold in the US are built in China, with the rest coming from Sweden or Belgium. Beginning in late 2018, the first US-made S60 models will roll off an assembly line in Berkeley County, South Carolina, northeast of Charleston. Some of those models will be exported to China.

2018 Volvo XC60
Volvo’s fleet targets “active lifestyle” adults and families.

As for consumers — the ultimate decider of Volvo’s success — they’re showing their pleasure by buying more vehicles, even in a declining market. Personally, I believe Volvo has aced both its exterior and interior designs and greatly improved its technologies, including its previously cumbersome Sensus infotainment system.

Perhaps the company’s weakest point is its powertrain offerings with customers given a choice of one or two forced induction systems along with available hybrid engineering. If you want a naturally aspirated V6 or V8, or a turbo-diesel engine, you won’t find them. Instead, Volvo is hinging its future on electrification with both hybrid and pure electric models playing significant roles in all Volvo products from 2019 on.


See Also — Volvo V90 Wagon is US Bound

Photos courtesy of Volvo Cars.

Filed Under: New Models Tagged With: 2018 cars, 8-SPEED AUTOMATIC TRANSMISSION, all-wheel drive, Android Auto, Apple CarPlay, Bowers and Wilkens, China, South Carolina, SUPERCHARGER, SWEDEN, TURBOCHARGER, VOLVO CARS, Volvo S90, VOLVO V90, Volvo V90 Cross Country, Volvo XC60

Buick Envision Debuts With No Fanfare

June 8, 2016 by admin 2 Comments

The made-in-China Envision is now on sale in North America.

Buick Envision
The Buick Envision is GM’s first Chinese import to the US.

The Buick Envision has arrived, the third crossover in this tri-shield brand’s portfolio. Only you wouldn’t know that without closely examining US auto sales data for May 2016.

Tucked within that information are the 89 Envisions sold in the US last month. As promised, Buick said the Envision would go on sale in the second quarter of 2016. However, instead of the customary fanfare accompanied by TV ads and a media push, the Envision has quietly gone on sale.

Political Posturing and a New Crossover

Why the quiet debut? Buick told Automotive News the Envisions now on sale are high-trim level 2016s. In a few months, the full range of Envisions will be made available and sold as 2017s. Its an unusual approach, but it may signal an internal decision to avoid political theater.

Indeed, the Buick Envision is made in China and it might receive unwanted attention from the presumptive Republican presidential nominee, Donald Trump. Trump has harshly criticized US manufacturers for shipping jobs overseas or importing products that could just as easily be built by Americans.

Just last week Trump criticized the PGA Tour for its decision to move a tournament from the US to Mexico. The WGC-Cadillac Championship has been played at the Trump National Doral near Miami and will shift to Mexico beginning in 2017. Cadillac’s sponsorship was ending and will be replaced by Grupo Salinas, an assemblage of media companies.

NAFTA and Imports

Notably, Cadillac and Buick are GM brands and just this week Trump blasted the automaker for its investment in Mexico. GM now joins the Ford Motor Company, Carrier and Nabisco, as companies the presidential candidate has attacked.

While campaigning, Trump has suggested a 35 percent tariff on vehicles imported from Mexico. Of course, that recommendation ignores NAFTA (North American Free Trade Agreement), a trilateral agreement the US made with Canada and Mexico to do away with numerous tariffs.

(See Also — Swift Sportback: 2018 Buick Regal GS)

2016/2017 Buick Envision

Political posturing aside, the Chinese-made Buick Envision fills an important hole in the Buick product line. Prior to its arrival, Buick offered the subcompact Encore and midsize Enclave crossovers. The Envision provides a natural step in the product line for Buick customers.

Visit the Buick.com website today and you’ll find no information about the Envision on its home page. Click the “All Vehicles” tab and a model list is shown. Cast your eyes on the “SUVs” category and you’ll spot the 2016 Envision tucked neatly between the 2016 Encore and the 2016 Enclave.

You’ll also spot a sky-high price for the Envision, starting at $42,070 or $3,005 higher than the Enclave. Click the “explore” tab, then “view specs” and you’ll find two trim levels featured. Both are fully-loaded all-wheel drive versions, the only models marketed in the 2016 model year.

Head back to the “all vehicles” tab and you’ll spot the 2017 Envision and a note explaining its fall 2016 availability. Click “explore” and a list of five trim levels will appear. The base price for the standard Envision is $34,990 with Preferred ($36,795), Essence ($38,645), Premium ($43,245), and Premium II ($45,885) models offered.

Front-wheel drive and a 2.5-liter, four-cylinder engine are standard. All-wheel drive or active twin-clutch all-wheel drive are available. A turbocharged 2.0-liter, four-cylinder engine is offered with the two top trims only.

The Buick Product Line

Buick’s model line is expanding and they’re using cars built in Michigan, Ontario, Kanas, and China to draw customers to the tri-shield brand. It is doubtful whether most customers care where their cars are built.

And as for American jobs, dealer and service level positions are keeping people employed and tax coffers are replenished no matter where the new car was manufactured.

Recent News — 2017 Nissan GT-R Premium: $109,990

Filed Under: New Models Tagged With: 2016 SUVs, 2017 SUVs, BUICK ENCLAVE, BUICK ENCORE, BUICK ENVISION, China, DONALD TRUMP, GM, MEXICO, NAFTA, TRUMP NATIONAL DORAL

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 VeranoNevertheless, 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?

Filed Under: Automotive News Tagged With: BUICK AVENIR, BUICK CASCADA, BUICK ENCLAVE, BUICK ENCORE, BUICK ENVISION, BUICK REGAL, BUICK VERANO, China, FUEL PRICES, GM, Gmc, SUVs

Can You Dig It? Faraday Future Plots Course in Nevada

April 15, 2016 by admin 2 Comments

Upstart Chinese-backed electric vehicle maker breaks ground in North Las Vegas, Nevada.

Faraday Future
A likeness of the Faraday Future in Nevada.

Faraday Future is an emerging US car manufacturing company with a plan to bring its first electric vehicle to the market faster than Tesla Motors. However, before they can do that, the company will need to build its first-ever factory.

This week, Faraday broke ground on a plot of land located a half hour north of downtown Las Vegas. A 2.5-million square foot plant will sit on approximately 600 acres in North Las Vegas’ Apex Industrial Park and eventually yield thousands of new jobs.

Chinese Billionaire Backing

Faraday follows Tesla in building a factory in the Silver State. Like Tesla, Faraday is receiving extensive financial backing from Nevada. Unlike Tesla, it doesn’t have an announced product yet or an official prototype. What it does have is the backing of one Jia Yueting, a 43-year-old Chinese billionaire and owner of Leshi TV, one of China’s most popular online videos sites.

On Wednesday, Faraday Future officials gathered with local and state dignitaries, including Nevada Governor Brian Sandoval, to break ground on the company’s $1 billion desert investment. The state-of-the-art plant will utilize such innovative technologies as solar, wind, and geo-thermal energy to power the sprawling edifice. Furthermore, Faraday says it will be sourcing sustainable materials from Tier-1 suppliers the world over and incorporate these supplies within their vehicles.

Tom Wessner, VP of Global Supply Chain at Faraday Future (FF), left, Ding Lei, Co-founder, Global Vice Chairman at See Plan at LeEco, second, Nevada Gov. Brian Sandoval second right, and Dag Reckhorn, VP of Global Manufacturing at FF turn shovels at Faraday Future’s Ground Breaking Ceremony on Wednesday, April 13, 2016, in North Las Vegas.(Bizuayehu Tesfaye/AP Images for Faraday Future)

Fast-Tracked Development

The company says that its project is ambitious, one that would normally take four years to complete, but what they intend to finish in half the time. The plant is expected to yield the company’s flagship vehicle, based on a variable platform architecture that will give way to other models.

The modular electric vehicle platform makes it possible for Faraday to add or remove batteries as necessary and change the location of the engine, electric powertrain, the wheels, or most any internal part. As a result, Faraday claims they’ll be able to launch a vehicle faster than Tesla Motors and for a lower cost outlay.

Construction and Hiring

In about a month, construction is set to begin. The company already employs more than 750 people at its California facility and is expected to add 4,500 positions at the plant alone.

Those job openings are currently composed mainly of engineers for the company’s Automated Driving and Chassis Engineering divisions. Faraday is also looking for people to build out its Infotainment system, IT, supply chain, and vehicle safety systems.

Some of the openings are in Los Angeles while other positions will be on site in Nevada. The company has been actively hiring for more than a year, poaching some of Tesla’s brightest minds while also raiding other manufacturers.

FFZERO1 Concept

Although Faraday Future hasn’t announced a product or shown a prototype yet, it has taken the wraps off a concept vehicle, dubbed the FFZERO1 Concept.

Described by Car & Driver as a single-seat, doorless super car, the FFZERO1 concept was teased at the 2016 Consumer Electronics Show in Las Vegas in January, what the company says is a 1,000-horsepower autonomous car with a top speed of 200 mph and a 0-to-60 mph time of under three seconds.

Powered by four quad motors, the concept is composed of carbon fiber and lightweight composite construction with an advanced high-performance suspension. Faraday says its aero tunnel design reduces battery cooling and drag accordingly. Inside, the FFZERO1 concept provides a fully-connected environment (at least on paper) with viral and head-up displays.

Few, however, believe that the FFZERO1 concept will be anything like the vehicle Faraday might bring into production. Instead, it may simply serve as a delicious attention getter for the world’s newest automotive manufacturer.

If Faraday pulls it off, the future of automotive engineering and technology may be influenced by one of the unlikeliest of all manufacturers.

Photo courtesy of Faraday Future.

Filed Under: Automotive News Tagged With: AUTONOMOUS CAR, China, ELECTRIC VEHICLE, FARADAY FUTURE, FFZERO1 CONCEPT, JIA YUETING, LESHI TV, NEVADA, NORTH LAS VEGAS, TESLA MOTORS

Forecast: 7 Top Auto Trends for 2016

December 31, 2015 by admin Leave a Comment

We take a look at what may become the top auto trends for 2016.

2016 Chevrolet Camaro.
2016 Chevrolet Camaro. (photo copyright GM Corp.)

This year (2015) will go down as one for the books. Specifically, it will be a sales record breaker once the books have been closed on Jan. 4. That means on Tuesday we’ll know which model was the best selling car (Toyota Camry), the best selling truck (Ford F-150), and the best selling luxury brand (BMW). Sorry for the spoilers.

Since the market bottomed out in 2009, consumers have been snapping up new vehicles, especially crossovers. Manufacturers continue to roll out new models along with the latest technologies and safety features.

If you haven’t purchased a car in at least a decade you’ll find a long list of included or available amenities not offered way back when. To that end, we’ll look at some of the top auto trends for 2016 and the impact of such trends.

1. Car sales continue to rise.

We’re due for an economic downturn, but that drop may still be more than a year away. If so, then look for US auto sales to top 18 million units in 2016, setting yet another record.

Although the Federal Reserve Bank has raised interest rates by 0.25 percent, the effect on consumers should be negligible. What is helping nearly everyone is low gas prices. As long as regular grade gasoline averages $2 per gallon or less, consumers will save hundreds of dollars per year.

2. The presidential election will become a factor.

No matter who the Democrats and Republicans serve up as their candidate, we’ll have two people who will be more alike than different. A number of policy issues will be discussed and debated; creating jobs for Americans will remain a top issue.

Expect both candidates to promise the moon, even if they can barely deliver on those promises. Expect a new administration to carefully review the fuel economy standards, perhaps proposing a rollback of the 54.5 mpg mandate that nearly all manufacturers will find tough to implement by 2025. That rollback, however, won’t occur before the new president takes office in January 2017.

2016 Volvo S60 Inscription

The made-in-China Volvo S60 Inscription.

3. Chinese-built cars will increase in numbers.

It wasn’t too long ago that the thought of Chinese-built cars reaching the North American market had some people up in arms. After all, how could any manufacturer compete against a $6,800 Geely? Then again, what junk would be foisted upon consumers at such a low price point?

Well those fears are unfounded. First, no Chinese manufacturer has entered the market all by itself. Second, the cars that are imported from China are from known manufacturers. For instance, the Volvo S60 Inscription, a stretched wheelbase model, is made in China. The Chinese-made Buick Envision arrives this spring.

Although the floodgates aren’t about to open, you’ll see more products from different places thanks to the Trans-Pacific Partnership Free Trade Agreement (TPP), which is expected to be signed in February. You can also expect strong push-back against TPP from both sides of the political aisle.


See Also — It’s a Wrap: 2018 in Review


4. Automotive lightweighting goes mainstream.

Okay, vehicle lightweighting is nothing new. Its just widely misunderstood.

A case in point — when I inquired at a recent automotive media event regarding lightweight properties for a new pickup truck, my hosts didn’t seem to understand my question. That question was further clouded when a colleague quipped, “They didn’t want to make it lighter because it is a heavy duty truck.” Sigh.

Car manufacturers, however, get lightweighting. They’re also working with elastomer manufacturers around the world to incorporate nitrile butadiene rubber in under-the-hood applications. As long as these and other materials are cost-effective, recyclable and practical, then greater adoption will continue throughout 2016 and well beyond.

2015 Ford F-150

The current-generation Ford F-150 is the poster model for all things lightweighting.

5. The lurch to autonomous driving continues.

The experts tell us that autonomous driving will arrive in 2020. That means within five years we’ll see the first driverless cars take to the road. That also means the beginning of the end for behind-the-wheel driving. Or does it?

No doubt, some type of autonomous driving will be in place, but with more than 250 million registered vehicles in the US, the percentage will be small, quite possibly matching the adoption rate for electric vehicles. Consumers won’t give up their cars en masse for several reasons, including wanting to keep the cars they love as well as not being able to afford the attendant higher cost for autonomous vehicles.

Politically, a backlash against autonomous vehicles may emerge, especially if consumers grow weary of the intrusiveness — perceived or otherwise — that emerging technologies bring, particularly in the form of privacy. Instead of a wholesale adoption of autonomous cars, a number of safety features will be standard. We’ll see adaptive cruise control, automatic braking, and lane keep assist in more models in 2016.

6. New alliances and partnerships emerge.

We’re seeing more alliances emerge across the auto industry and that pace should continue in 2016. Such agreements will be forged to give manufacturers an edge wherever needed. Toyota and Mazda hooking up essentially keeps the latter in the ultra-competitive US market for the long haul while giving Toyota much needed product (Scion iA) for a low cost. Mazda will soon benefit from Toyota hybrid technology; both manufacturers will probably share Mazda’s SKYACTIV technologies to some degree.

I won’t predict where those alliances will emerge, but figure that any product holes will be filled by such agreements. Mitsubishi, if it is to survive in the US, must find a partner to supply a midsize sedan, share in EV development, and otherwise fill out its weak portfolio. Today’s strange bedfellows may become tomorrow’s partners.

2016 Scion iA

The Scion iA is the result of a partnership between Toyota and Mazda.
(Photo copyright Toyota Motors).

7. Technologies begin to work as touted.

If you have purchased a car within the past two or three years, the telematics system may be one of your least favorite options. Consumer surveys conducted by J.D. Power have amplified that frustration, thus getting it right will give manufacturers a much-needed edge in luring on-the-fence shoppers.

Helping matters are two technology giants — Google and Apple. Both companies are vying for dashboard access with Google Android Auto and Apply CarPlay enabling ease of smartphone integration. Where manufacturers are slow to adopt either, third-party audio systems such as Pioneer and Kenwood are making units compatible with both. Thus, if you have an older car, you can enjoy that access and avoid buying a new car.

Top Auto Trends

Other top auto trends will have little to do with your car, at least directly. Most will have to do with buying a vehicle, with leasing likely to continue to grow in numbers, while long-term auto loans of up to 84 months become more common.

Of course, if any major international crisis erupts, then these predictions should be amended or tossed.

Filed Under: Automotive News Tagged With: ALLIANCES, Apple CarPlay, AUTONOMOUS DRIVING, BUICK ENVISION, China, GOOGLE ANDROID AUTO, LIGHTWEIGHTING, MAZDA, PARTNERSHIPS, PRESIDENTIAL ELECTION, SKYACTIV, TOP AUTO TRENDS, Toyota, TRANS-PACIFIC PARTNERSHIP FREE TRADE AGREEMENT, US CAR SALES, VOLVO S60 INSCRIPTION

Buick Sets Sales Record Again

December 22, 2015 by admin 3 Comments

For the third consecutive year, Buick sales have set a record. China is the marque’s strongest market, but the brand remains important to GM in North America.

Buick, the brand almost forgotten by American consumers and nearly canceled as part of GM’s 2009 bankruptcy and restructuring, has once again set an all-time sales record.

GM’s premium mainstream marque surpassed last year’s record pace in mid-December and is expected to top 1.2 million global units sold by year’s end. This is the third consecutive year of record sales for a brand that counts on China to supply most of its growth.

Buick Regal

Premium midsize sedan: Buick Regal (Photo: Auto Trends).

China to the Rescue

Indeed, China is the market that saved Buick. In 2009, when GM was weighing its brand options, Buick was vulnerable. Falling US sales, the oldest customer demographic of any brand, and a poor product mix signaled that something had to be done. China’s market saved the day and the brand, enabling GM to cancel or sell Pontiac, Saturn, Hummer, and Saab instead.

With a new lease on life, GM began to remake Buick with Chinese and American consumers in mind. China, however, has driven the brand and accounts for more than 80 percent of its sales. The effort has worked as the Buick Excelle GT, launched early in 2015, is the country’s best-selling model.

Duncan Aldred, vice president of Global Buick noted, “We think 2016 will be another watershed year for the brand with the global launch of the new 2017 LaCrosse, the North American launch of the Envision, the U.S. launch of the Cascada, and the Chinese launch of a new Verano hatchback. Our products and our customer service have never been better.”

Buick Envision

Imported from China: Buick Envision (Photos: GM.com).

Strong Crossover Sales

Buick customers are embracing the line’s crossover products in both markets. In the US, crossovers now account for 40 percent of all new vehicle sales, but represent 60 percent of Buick’s sales stateside.

Just two products — the diminutive Encore and the three-seat midsize Enclave are accounting for crossover sales. With the arrival of the compact Envision SUV next spring, Buick’s hold on the segment should grow only stronger. In China, GM estimates that it will have sold 130,000 Envisions for the year.

Also helping Buick’s cause is the brand’s success in major consumer surveys, including the J.D. Power U.S. Customer Service Index. For the past two years, Buick has garnered the top spot amongst the mass market brands. It is also the only domestic brand ranked in the Top 10 of the 2015 Consumer Reports Reliability in the US.

Buick Avenir

The full-size Buick Avenir concept sedan (Photo: GM.com)

Waiting in the Wings: Buick Avenir

One model not mentioned in Buick’s product mix is the Avenir, a full-size high-end sedan. Presented in concept form at major auto shows early in 2015, the big Buick would slot above the LaCrosse if GM decided to build it.

China is the logical destination for this sedan, but the US market could see the Avenir too. US sales numbers would likely prove modest, but as a halo product it might raise the visibility of the brand.

Before a possible Avenir arrival, Buick will receive the Chinese-built Envision, the German-built Cascada 2+2 convertible, and a refreshed LaCrosse. The LaCrosse redesign incorporates Avenir styling cues, pointing to a new styling direction for Buick regardless of Avenir placement or not.

See Also — Christmas Holiday Traffic to Hit a Record This Year

Filed Under: Automotive News Tagged With: BUICK, BUICK AVENIR, BUICK EXCELLE GT, CAR SALES, China, GM

Buick Envision: Imported From China

December 7, 2015 by admin 3 Comments

Despite UAW protestations, GM will move forward with introducing the made-in-China Envision SUV, the eighth vehicle in this premium brand’s product line. The new SUV arrives next summer in time for the 2017 model year.

Buick Envision

The compact, premium Buick Envision SUV.

Chinese-built cars are here, but most consumers haven’t taken notice. Or at least they are in the dark about such models.

The 2016 Volvo S60 Inscription is one such model, an extended wheelbase version of this luxury sedan. Its not that Volvo has been trying to keep its importation a secret, rather the move to include Chinese-built vehicles is simply a natural progression in all things global manufacturing.

GM is about to bring one of its own products from China, the compact two-row Envision crossover SUV. The new model will slot between the tiny Encore and the midsize Enclave when it goes on sale next year, filling an important gap in Buick’s expanding product line.

It wasn’t too long ago that consumers were up in arms about automotive products imported from the largest consumer market in the world. After all, China is hardly a bastion of quality products, but automotive manufacturers have been working carefully to ensure what models are planned for overseas markets meet consumer expectations.

UAW Announces its Opposition

In any case, importing the Buick Envision isn’t without its risks or its opponents. Indeed, the UAW has taken exception to GM’s decision, issuing a statement on Dec. 4 deriding the move. Said UAW Vice President and Director of the General Motors Department, Cindy Estrada: “Today’s announcement by General Motors that they are importing the Envision from China is a slap in the face to U.S. Taxpayers and the men and women who worked so hard to save GM during its darkest time.”

Estrada and others have called on GM to build the Buick Envision in one of the automaker’s US facilities, but the company has declined. Notably, Estrada pointed to the Trans-Pacific Partnership (TPP) as one of the bugaboos of jobs for rank and file members, and perhaps the underlying reason for GM’s decision to not build the SUV here.

Summer 2016 Debut

Nevertheless, the Buick Envision is set to arrive stateside next summer and will have its North American debut next month at an auto show in Detroit. The new model is comparable in size to the Jeep Cherokee as well as the Ford Escape, two models from traditional American manufacturers built in the US.

The Buick Enclave has been warmly received in China, where it has been on sale for about a year. Through Nov. 2015, 127,085 units have been sold. Encore and Enclave sales combine to make 60 percent of Buick’s product total, reflecting a current consumer trend toward all things SUV.

Turbocharged Four-Cylinder Engine

Details about the US-spec Buick Enclave reveal that it will be powered by a 252-horsepower (260 foot-pounds of torque), 2.0-liter turbocharged, four-cylinder engine and will feature the brand’s first active twin clutch all-wheel drive system. Other features include IntelliLink telematics, active noise cancellation, LED daytime running lights and LED accent lights, standard 19-inch wheels, a Bose audio system, and three-zone climate control. Popular options include cooled front seats, a panoramic sunroof, and OnStar with 4G LTE and a built-in Wi-Fi hotspot.

Pricing details have yet to be announced. Buick says it will aim the standard front- and available all-wheel drive Envision at the Lincoln MKC, Audi Q5 and Acura RDX.

Eight is Enough?

With the Envision’s arrival, Buick’s product line will have eight models as the Envision follows the Opel-inspired Cascada to the market. A ninth model, the Buick Avenir, may yet be announced — a beautiful concept that would slot above the flagship LaCrosse sedan. However, the Avenir remains a concept — its styling cues will be shape the 2017 LaCrosse.

Filed Under: Automotive News Tagged With: 2017 MODELS, all-wheel drive, BUICK ENVISION, China, front-wheel drive, GM, SUV, TURBOCHARGED ENGINE, UAW

Two More Years of Strong Auto Sales?

October 15, 2015 by admin 1 Comment

Auto sales continue to rise globally with the US market experiencing strong gains. The year-over-year streak may continue until 2018 when economic headwinds contribute to the first decline since 2009.

US auto sales are the strongest we have seen since before the last recession with domestic manufacturing plants operating at full capacity. Sales in September increased by more than 16 percent, translating to a selling rate topping 18 million units annually.

Ever since reaching bottom in 2009, the domestic market has been on a rebound. Indeed, Fiat Chrysler is currently enjoying a 68-month streak of year-over-year sales increases, Subaru is gaining market share at the expense of its rivals, and Audi continues to claim a larger slice of the luxury market and has a 57-month sales streak of its own.

IHS Automotive: Auto Sales Pull Back

The good news may continue for a while, but a pull back is coming. That’s the opinion of market research company IHS Automotive, whose forecast sees auto sales inching up over the next two calendar years before beginning to pull back over rising interest rates and other market factors.

US auto sales forecastOn Tuesday, IHS Automotive released a report, “Global Economic and Automotive Outlook,” offering a fall update of the global automotive market, including the status of the US automotive market. Presented by Charles Chesbrough, Senior Principal Economist — IHS Automotive, the report (opens to a .pdf) concluded that consumer buying desire remains high, while the strong labor market improves their ability to purchase a new car.

Annual Forecast Adjustment

The favorable conditions currently at play also include stronger consumer confidence, consistent job creation, slight increases in wages, low gas prices, and the widespread availability of high tech products. Further, manufacturers are benefitting from a lower cost of materials and have been responding with numerous new products and updates. Credit availability is excellent and low loan interest rates are making purchasing a new car possible for a larger group of consumers.

The continued upswing of the auto industry has prompted IHS Automotive to adjust its earlier forecast. The research firm now sees US auto sales finishing at 17.3 million units this year, up from 16.5 million in 2014. Further, IHS estimates that the market will support 17.8 million units in 2016 and peak at 18.2 million units in 2017 before pulling back in 2018.

The Coming Blow Back

Headwinds are on the way and that translates into an industry downturn beginning in 2018. By then, tighter credit will begin to restrict consumer access to the market with auto sales drifting downward to 17 million units sold annually by 2022 reports Automotive News. Notably, the anticipated decline does not factor in the typical sales plunge that usually follows peak auto sales, with Chesbrough leaning toward a more modest pull back.

Chesbrough also noted the industry is in a much better position these days with production capacity and demand ideally aligned. In addition, improved labor contracts along with incentive discipline are benefitting the industry. In times past the industry used various schemes to spike traffic, only to see sales fall and profits with it once the programs were ended.

China Sets the Pace

The IHS study examined global markets with China remaining by far the largest market for new cars. Indeed, China overtook the US as the top market for new cars in the last recession, reaching 23.5 million units sold in 2014.

China’s annual auto sales should reach 30 million units by 2020 with 32.2 million sales forecast by 2022. China alone will account for nearly half of the world’s incremental growth through 2020.

India is another market in the midst of a healthy growth cycle, while Brazil and Russia continue to experience losses, a trend that won’t end before 2017. Japan and the Eurozone are enjoying a modest uptick in gross domestic product (GDP), but at a pace slower than the current 2.6 percent global average.

See Also — Flagging Fiat Sales: No Easy Answers

Filed Under: Automotive News Tagged With: AUTO SALES, AUTOMOTIVE NEWS, CHARLES CHESBROUGH, China, GDP, IHS AUTOMOTIVE, SALES FORECAST, US

Ford Designates $1.8 Billion for China

October 12, 2015 by admin 1 Comment

Automotive sales have cooled in China, but the Ford Motor Company still sees much potential for expanded opportunity in the world’s largest consumer market. Today, the automaker announced plans to invest $1.8 billion to bolster research and development in China.

The investment comes as Ford seeks a greater share of the lucrative Chinese automotive market led by Volkswagen and General Motors. In recent years, Ford has seen its market share increase even as manufacturers such as Toyota and Honda find the going tough. At present, Ford is in fifth place with Volkswagen, GM, Hyundai and Nissan in front.

Ford C-MAX Energi
Ford C-MAX Energi

Smart Car Technologies

Ford’s investment will provide funds to push for increased smartphone integration, vehicle autonomy and other so-called “smart car” technologies designed specifically for the Chinese market. In particular, the automaker is eyeing smartphone features that give drivers more control over their car systems by means of mobile chat. Ford’s Sync 3 system will play an important role in that endeavor when it is released next year, building on its current telematics initiative.

Ford Chief Executive Mark Fields disclosed the investment at a corporate event in Shanghai. He also declared that Ford will advance vehicle electrification in China by introducing its plug-in hybrid electric vehicle, the C-MAX Energi, as well as its Mondeo conventional hybrid. The Mondeo is sold as the Ford Fusion in North America.

“At Ford Motor Company, our goal is to make people’s lives better,” said Mark Fields, president and CEO, Ford Motor Company. “As both a product and mobility company, we are driving innovation in every part of our business. The result here in China will be a positive change for consumers in the way people move, the way they drive, the cities they live in and the communities in which we operate.

Pollution and Traffic Woes

The Chinese government has been pushing for vehicle electrification in a bid to reduce pollution, but the process has been slow due to a deficient infrastructure. Nevertheless, car manufacturers are responding to the push by introducing hybrids and pure electric vehicles.

Another problem besetting China is traffic. Despite just one in 10 consumers owning a vehicle (compared to eight in 10 in the US), the country’s traffic problems are enormous. Indeed, a highly publicized 50-lane traffic jam earlier this month following a week-long National Day break showed just how out of control the problem is with tens of thousands of drivers affected. Although certainly not a manufacturer problem, traffic woes can adversely affect consumer purchase decisions.

Passenger and Commercial Vehicle Partners

Ford sells its cars through two partners — Changan Ford Automobile (passenger vehicles) and Jiangling Motors Corporation (commercial vehicles). In August, the last month sales figured were published, the two partners combined to sell 79,608 vehicles, down three percent compared to the same time last year.

Ford’s China sales are down one percent year to date through August on just over 700,000 vehicles sold. In comparison, Ford’s US sales were up three percent through August on 1.685 million units sold.

Lincoln in China

Besides the Ford brand, the automaker has been touting its Lincoln marque in China. Lincoln got started in China only last year, introducing its compact MKC crossover and the entry-level MKZ sedan to consumers first. Two additional products, the midsize MKX crossover and the full-size Navigator SUV, are on tap for release this fall.

Although Lincoln’s Chinese footprint is small, it is making use of the Internet to reach customers through its virtual “The Lincoln Way” website, what tells the brand’s story to potential customers, especially for those without current access to Lincoln stores. This effort is designed to help educate customers as well as to enable dealers to build their customer base.

See Also — Ford Raises 2017 Michigan Investment to $1.9 Billion

Photo copyright the Ford Motor Company.

Filed Under: Automotive News Tagged With: China, Ford, FORD C-MAX ENERGI, INVESTMENT, MARK FIELDS, RESEARCH AND DEVELOPMENT, SMART CAR TECHNOLOGIES, THE LINCOLN WAY

Will NextEV Rival Tesla Motors?

September 3, 2015 by admin 1 Comment

NextEV
From Team China Racing to production models, NextEV intends to join Tesla Motors
as a manufacturer of high-end electric cars.

It is only a matter of time before a company rivaling Tesla Motors emerges. Tesla, the envy of many, may soon have a competitor in NextEV, a Chinese company that has won key financial backing from financial investors, including Hillhouse Capital.

Hillhouse Capital is an important investor in Uber, the ride sharing service. NextEV’s other backers, which include Chinese Internet entrepreneurs, have hired Martin Leach to build the company. Leach was formerly an executive with the Ford Motor Company, serving as the company’s chief operating officer and president of the automaker’s European division until 2003. He later worked for Maserati and was also employed by the British subsidiary of the Russian automotive company, the GAZ Group. Leach is also serving as chairman of the London-based Magma Group, an automotive services company specializing in automotive intelligence.

NextEV has also been recruiting executives from other manufacturers, including Volkswagen, BMW and Tesla. The Chinese government is providing backing in a bid to create new electric car enterprises. To that end, the Chinese put forth rule changes that now permit non-automotive companies to invest in businesses such as NextEV. On Monday, Reuters identified Alibaba and Leshi as two of the companies that have announced or are considering backing NextEV.

NextEV Supercar

Like Tesla, NextEV plans to build a limited edition model initially. The high-end Tesla Roadster was limited to 2,500 units before it was discontinued. It was followed by the Tesla Model S, the model that has raised the company’s global prominence.

NextEV plans to build an electric super car, with the company claiming that it will outperform all combustion engine super cars the world over. Plans for the unnamed vehicle are well under way with the new model expected to debut in 2016.

The company claims that the super car will produce more than 1,000 horsepower and go from 0-to-100 kilometers an hour (62 mph) within 3 seconds. Following its initial model, an assortment of high-performance family cars will be built.

Chinese Investor Backing

The Chinese Internet company, Tencent, is backing the initiative in addition to Bitauto.com, an Internet content provider. Richard Liu, founder of the e-commerce site JD.com, has also thrown in his support.

Leach will serve in the capacity of co-president. Currently, he is leading recruitment efforts by looking for staff in California, China, Hong Kong, and Europe. The upstart manufacturer has already poached John Thomas, the former senior program director for Tesla Motors, and a pair of designers from BMW and Italdesign Giugiaro. Thomas, incidentally, helped bring the Tesla Model S to the market.

NextEV is not disclosing financial information and says that it will introduce its cars to the Chinese market first before moving on to other markets. No other information or timeframes have been announced.

Launching NextEV comes as the world is in the midst of an oil glut and as prices in the United States continue to fall to levels not seen in several years. Oil prices should remain depressed for the next few years, but are expected to rebound and push much higher as consumer demand escalates. Moreover, oil prices are always subject to the vagaries of geopolitical drama, what could easily double prices in short order and/or lead to spot shortages.

China Racing Formula Team

Related to the NextEV auto building enterprise is NextEV TCR (Team China Racing). The race team participates in the new global electric FIA Formula E World Championship, what made its debut in Beijing in 2014 according to the company’s website.

This past June, NextEV TCR won the inaugural FIA Formula E Championship driver’s title in London, with Brazilian Nelson Piquet behind the wheel. The race team got started in 2004 as one of the A1GP teams, as authorized by China’s Ministry of Sport.

See Also — GLM ZZ Picks Up Where the Tesla Roadster Left Off

Photo copyright NextEV.

Filed Under: Automotive News Tagged With: China, ELECTRIC CAR, MAGMA GROUP, MARTIN LEACH, NEXTEV, SUPER CAR, TEAM CHINA RACING, TESLA MOTORS

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