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Emerging Alliances Point to Further Auto Industry Consolidation

March 28, 2019 by admin

What a month! March 2019 may go down as a pivotal time in automotive history as auto industry consolidation talk strengthens anew.

The news is coming from all corners of the globe as multiple players talk, while others forge alliances. Consolidation certainly isn’t anything new, but the future absolutely points to a host of mergers and alliances taking shape.

2019 Ford Ranger
Volkswagen and Ford are forging a pact that might lead to a Ranger-based pickup truck for VW.

See Also — Fiat Chrysler Renault Merger Talk Heightens


Ford, Volkswagen Tie One On

Heading the alliance news this month is a not-yet-signed agreement between Ford and Volkswagen. According to Reuters, the two automotive giants have been in talks for months and appear ready to sign a pact.

That agreement may involve Volkswagen purchasing a stake in Argo AI, which is Ford’s artificial intelligence company. Argo AI represents the blue oval’s autonomous vehicle and artificial intelligence aspirations, a company launched in 2016. Volkswagen doesn’t have an equivalent business, thus investing in Ford’s venture would give it instant access to AI.

At the same time, Ford appears ready to supply Volkswagen with a pickup truck. The German automaker doesn’t have a model for the American market, though its car-based Amarok is sold in multiple markets. Although the type of truck has not yet been identified, we believe a model closely based on the midsize Ford Ranger pickup truck seems likely.


See Also — Key Facts Surrounding the Nissan-Mitsubishi Alliance


Daimler, Geely Go Beyond Ride-Hailing

Daimler and Geely are expected to soon sign an agreement which would allow the Chinese automaker to purchase a 50-percent stake in Daimler’s Smart small-car brand. Smart has been languishing for years and talk of the brand’s demise emerged just this week.

But Smart may find new life yet as an electric car manufacturer with the Chinese market its main source. The Financial Times reports that an announcement will be confirmed at the Shanghai Auto Show in April.

The two manufacturers are no strangers, although Daimler’s Mercedes-Benz and Geely’s Volvo brands are direct competitors. In 2018, the two companies joined forces to form a China-based ride-hailing company reports CNN.

A Suitor for FCA

The late Fiat Chrysler executive Sergio Marchionne fashioned one of the most unlikely alliances earlier this decade as he married a pair of Italian and American automakers, but he was never satisfied that it would last apart from further consolidation.

Indeed, Marchionne was one of the earlier proponents of global consolidation, noting as far back as in 2009 that there would be “six survivors in the global volume sector.” Marchionne stated his viewpoint during the midst of a worldwide downturn in auto sales that nearly sunk Chrysler and GM and put other manufacturers in jeopardy.


See Also — Auto Industry Buzzword: Collaboration


Marchionne passed away in 2018, but the spirit of FCA consolidation lives on. Notably, in the past few weeks, we have heard that both France’s PSA Groupe (Peugeot, Citroën, Opel, et al) and the Renault-Nissan-Mitsubishi alliance seems interested in acquiring FCA. Jeep and Ram are FCA’s two strongest and most profitable brands and are the top prizes here. At the same time, a merger or an alliance might help FCA improve its performance in Asia, especially in China where it is particularly weak.

But these two possible companies/alliances aren’t the only ones interested in FCA. Several years back the Volkswagen Group targeted Fiat Chrysler, but its overtures were rebuffed. More recently, Hyundai expressed its own interest in the company, but it wasn’t planning to make a move until after FCA’s share values fell.

Limited Agreement Auto Trends

While further consolidation seems likely, more limited agreements between competing manufacturers will continue to emerge.

One of the results of this kind of agreement brought the Toyota Supra back to the market. The Supra’s return comes thanks to an agreement between Toyota and BMW, as the former used the latter’s Z4 platform to build its sports car. Toyota has also worked with Subaru to produce its 86 sports car, and may continue that pact for a new generation model.

Toyota, thanks to its size and deep pockets, may yet avoid the entire alliance and consolidation trend. With stakes in Daihatsu, Suzuki, Subaru, and Mazda, the company can turn to its partners to supply vehicles it doesn’t have. Further, it may work with its associated companies to spread development costs as needed without ceding control.


See Also — 5 Reasons Why Volkswagen Fiat Chrysler Makes Sense

Filed Under: Commentary Tagged With: ALLIANCE, Argo AI, AUTO TRENDS, consolidation, DAIMLER, FCA, Ford, GEELY, MERGER, NISSAN, Peugeot, PICKUP TRUCK, Renault, SMART, Toyota, Volkswagen

Volvo V90 Wagon is US Bound

February 19, 2016 by admin 1 Comment

The market for premium wagons continues to shrink in the US, but that isn’t stopping Volvo from introducing a second model in 2017.

Volvo V90 Wagon.
Coming to America: Volvo V90 wagon.

Consumer interest in all things SUV puts the Swedish automaker, Volvo, in a peculiar position. The automaker has its share of crossover-like models, but the company also produces a wagon-like V60 model.

The Volvo V60 will continue to be offered in the US market where demand for such vehicles is quite low. Further, it will be joined by another wagon in 2017, when the Volvo V90 takes a bow.

2017 Volvo V90

The Volvo V90 was introduced in advance of the Geneva International Motor Show (March 3-13, 2016). The wagon is underpinned by the same platform supporting the S90 sedan and the XC90 crossover. All three vehicles are new models for Volvo, representing an important product line expansion for this niche automaker.

Revealed at a press conference in Stockholm, Sweden, on Wednesday, the Volvo V90 enters a segment where large, premium wagons (estates) are popular in Europe, but not so much in North America. Yet, Volvo has a long history of supplying wagons to the US market and now counts wagons based on the Mercedes-Benz E-Class and the BMW 5 Series as its top competitors.

“We have a very strong position in the wagon segment,” said Håkan Samuelsson, president and chief executive of Volvo Cars. “In many people’s minds we are known as the definitive wagon brand. While the Volvo brand today stands for more than wagons, we are proud to carry forward this rich heritage with the V90.”

Scalable Product Architecture (SPA)

All three large Volvo models —V90, S90 and XC90 — will offer plug-in variants. PHEVs are another segment of the market where demand is very low, thanks in part to low fuel prices as well as the high cost of purchasing these vehicles.

However, Volvo is able to manage its costs as all three models are based on the company’s fully modular Scalable Product Architecture (SPA), what enables the automaker to build multiple types of vehicles and model sizes.

“The modern luxury wagon is all about the intriguing combination of a luxurious experience with the functional origins of the wagon silhouette. The sophisticated ambience of our new Volvo Interiors is combined with a great cargo space, providing the right kind of functionality – whether through connectivity or cargo and storage solutions,” said Thomas Ingenlath senior vice president for design at Volvo Cars.

Volvo, Safety Innovator

Volvo has long been a pioneer in all things safety related. The V90 will uphold that pursuit and go beyond. Indeed, the automaker says that the wagon will offer its innovative Pilot Assist semi-autonomous drive technology. Volvo claims that it is the most advanced standard safety package available, featuring large animal detection and run-off road mitigation, as well as market-leading connectivity such as Apple CarPlay for smartphone integration.

Technical details for the Volvo V90 have not been released yet. However, we do know that the PHEV version will produce upwards of 410 horsepower and have an electric-only range of approximately 31 miles.

Volvo Market Growth

Volvo was previously owned by the Ford Motor Company and is now owned by Zhejiang Geely Holding Group, a Chinese concern. US sales have declined since peaking at near 140,000 units in 2004, but are on the rebound. Volvo projects it will top 100,000 units in 2016, representing about one in five vehicles its sells. The automaker plans to sell 800,000 units per year globally by 2020 according to Automotive News.


See Also — Ford Announces Winter Tire Package for Upcoming Focus RS


Photo copyright Volvo Motors.

Filed Under: Automotive News Tagged With: 2017 cars, Apple CarPlay, crossover, GEELY, SCALABLE PRODUCT ARCHITECTURE, VOLVO V90, wagon

Executive Sedan: 2015 Volvo S60 T6 Drive-E

December 23, 2014 by admin 2 Comments

2015 Volvo S60

Volvo is still alive and kicking, one of the smaller premium brands left in the world. The Swedish automaker is now owned by Zhejiang Geely Holding Group, a Chinese company that bought Volvo Cars from the Ford Motor Company in 2009. Founded in 1927, Volvo has managed to survive in a hotly-contested segment by emphasizing its star attribute — safety.

2016 Volvo S60

A Volvo S60 sedan followed an XC60 crossover by a month in my press fleet rotation, with both models powered by a supercharged and turbocharged four-cylinder gasoline engine. Soon, every Volvo built will be powered by nothing but fours, the first premium make to do so. It is a risky move: there are people who want the larger engines and as soon as they hear “four” they’ll move on to BMW, Mercedes-Benz and Jaguar, among others.

The four banger in the Volvo should not be easily dismissed, however. The 2.0-liter engine produces 302 horsepower and 295 foot-pounds of torque, numbers that rival naturally-aspirated V-6 engines displacing around 3.6 liters. Moreover, a conscientious driver may be able to attain the 35 mpg highway rating although my 24.3 mpg average for the week was closer to what you get around town. More about the drive later.

2015 Volvo S60

Volvo has certainly come a long way over the past decade. Quite frankly, it needed to move away from Ford’s influence to a new owner that would allow it to move forward in a global market. Its Chinese titleholders have permitted the company to stay the course while enabling Volvo to expand its presence in China.

Made in Belgium

Geely hasn’t rushed shifting production to China and it isn’t about to abandon Europe in the process. Most models are built at its manufacturing plant in Torslanda, Sweden. The S60, like the previously tested XC60, are built in Ghent, Belgium. The company maintains a manufacturing plant in Malaysia and now produces several models in China. At some point, one or more of those models will be shipped stateside.

Today’s Volvo models have lost the boxiness that once defined them. The S60 is sleek, aerodynamic and is positioned to compete against the likes of the BMW 3 Series, Cadillac ATS and the Mercedes-Benz C-Class.

From the front, you might not know it was a Volvo apart from its trademark “iron” symbol and diagonal slash. The hood pushes down to the fascia, offering a bold, but sporty design with its wrap around headlight assembly accentuated by parking lights. A large lower grille opening is flanked by cut outs for the LED daytime running lights. They also house cornering lights that activate as you make your turns — I like this feature as it helps the driver see around poorly lit corners.

2015 Volvo S60

To the rear, a recognizable wraparound tail light design is marked by LED lights that flow from the top of the bumper to the base of the rear deck. Character lines run across the profile at door level height and also just above the rocker panel. Its profile is sporty; the roofline slopes to the rear deck.

On the Inside

Inside, the Volvo S60 provides materials that are on the same level as its competitors. You get hardened plastics across the dashboard and around the doors with generous amounts of high-end leathering covering the seats, the door inlays, around the steering wheel and on top of the center storage compartment. Wood and metal accents provide sophistication and give this model added flair.

The S60’s instrument panel is digitalized, featuring a large speedometer/tachometer in the center, flanked by additional details, including your average mpg, outside temperature, average speed and your current time. On the face of the steering wheel are the usual cruise and secondary audio controls.

2015 Volvo S60

At the top of the center console is a small, colorful display featuring controls for the radio, media, telephone and navigation. You can sync your smartphone with the system and play your favorite music. Switches and knobs located beneath that offer hands-on control for the infotainment system as well as for climate control. At the base of the stack are buttons controlling the rear headrests, lane departure, instrument panel, lane spacing and parking. This model comes with heated and cooled front seats.

The gear shift can be operated in automatic or manual mode, the latter is controlled by shifting the lever forward to go up in gears or backwards for lower gears. Volvo also includes steering wheel mounted paddle shifters.

A sliding cover between the front seats reveals two cup holders and a 12-volt outlet. A small, but deep storage compartment completes the separation and comes with a USB port and an auxiliary input connection.

2015 Volvo S60

The glove box is of average size and contains a storage slot on the inside door and provides deep storage. All four doors contain small storage compartments; there are no bottle holders present. This model has four cup holders, including two in the rear when the arm rest is folded down. A covered storage compartment is also included.

The front seats are amazingly comfortable and supportive with nifty active head rests providing an extra measure of safety. The seats are electronically operated and both come with “secret” storage compartments on the leading edge. You’ll also find another storage compartment behind the center console. It is open on both ends to hold a smartphone or maybe a snack or two.

The rear bench seat is comfortable for two, but not particularly pleasant for three. My near six-foot frame fit back there with about an inch to spare between the top of my head and the headliner. The seats are supportive and comfortable; leg room is tight if the driver or front passenger insists on pushing their seats all the way back.

2015 Volvo S60


2015 Volvo S60

View manufacturer details and pricing


Volvo and Safety

Safety is, of course, a Volvo mainstay. I’ve already hinted as much in mentioning the active head rests. Volvo’s safety initiative goes much further than that. They have a vision that “no one will be seriously injured or killed in a new Volvo by 2020.” That’s a bold statement, one that will be accomplished once autonomous driving is the law of the land.

The Volvo S60 comes with adaptive cruise control, what allows you to set your distance between your car and the vehicle in front of it. It also comes with a 360-degree camera to help you see obstacles around the car, especially helpful when parking or maneuvering around tight spaces.

No worries about using the high beams either — they automatically switch between low and high beams at night — switching to low beam when the sedan detects other vehicles, cyclists and pedestrians within it light field. City Safety automatically brakes the vehicle if you do not respond in time. This model also comes with forward collision warning and detects pedestrians and cyclists that cross in front of the car. Blind spot information, lane keeping assist and a suite of airbags are also at work.

2015 Volvo S60

For 2015, Volvo offers four engine choices with the S60. A 2.0-liter turbocharged direct injection four-cylinder engine making 240 horsepower is standard; a turbocharged 2.5-liter five-cylinder engine making 250 horsepower is available. Both engines are available in the T5 models.

A supercharged and turbocharged 2.0-liter four-cylinder engine making 302 horsepower is standard in front-wheel drive T6 E-Drive models. And a 3.0-liter turbocharged six-cylinder engine powers T6 R-Design models that are also all-wheel drive.

Because I had the E-Drive T6 that means I had the smaller, more powerful engine and front-wheel drive. Yes, it is all very confusing — soon, however, Volvo will offer the family of four-cylinder engines only.

2016 Volvo S60

The last Volvo I drove was similarly equipped as the S60 and torque understeer was rampant. In the S60 it was still noticeable, but more restrained. Let’s just say that for some buyers all-wheel drive will be preferred from both steering and handling standpoints.

The supercharged-turbocharged combination works well with this engine, with no turbo lag present. Press down hard on the accelerator and this sedan powers down the road with authority.

Steering is decent, but you won’t feel as connected as you would in a BMW or a Mercedes-Benz. The suspension seems light, tuned somewhere between what the typical European sports sedan offers and what traditional American sedans once provided. You have three steering system modes to choose from — find the one that you like and you probably won’t be disappointed.

Bang for the Buck

Safety has long been a chief selling point for Volvo and in the S60 T6 you get the performance that goes with it. You’ll pay at least $40,000 for one and if you are shopping around then cars like the Buick Regal, Audi A3, Volkswagen CC and Acura TLX might also be considered.

2015 Volvo S60

2015 Volvo S60

  • Sticker price from $38,150
  • Price as tested: from $46,525
  • Seats 5 occupants
  • 2.0-liter 16-valve supercharged and turbocharged four-cylinder gasoline engine
  • 302 horsepower @ 5,700 rpm
  • 295 foot-pounds of torque @ 1,800 to 5,500 rpm
  • 3.23 inches bore by 3.67 inches stroke
  • Engine compression ratio: 10.3-to-1
  • 8-speed automatic transmission
  • Wheelbase: 109.3 inches
  • Length: 182.5 inches
  • Width: 73.4 inches
  • Height: 58.4 inches
  • Passenger volume: 93 cubic feet
  • Storage volume: 12 cubic feet
  • Towing capacity: Up to 3,500 pounds
  • EPA: 24 mpg city, 35 mpg highway
  • Regular grade gasoline
  • Fuel tank: 17.8 gallons
  • Curb weight: From 3,472 pounds
  • IIHS safety rating: Top Safety Pick+ (2014)
  • Limited vehicle warranty: 4 years/50,000 miles
  • Powertrain warranty: 4 years/50,000 miles
  • Corrosion warranty: 12 years, unlimited miles
  • Vehicle assembly: Ghent, Belgium

More Car Reviews

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Luxury Refreshed: 2015 Lincoln Navigator

Stealth Sports Coupe: 2015 Infiniti Q60S

Mini Cooper S: Oh, Yes!


2015 Volvo S60 photos copyright Auto Trends Magazine. All rights reserved.

Filed Under: New Car Reviews Tagged With: 2015 CARS, BELGIUM, China, GEELY, luxury, safety, sedan, SWEDEN, VOLVO S60

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