GENERAL MOTORS

General Motors Deepens Partnership With Honda, Takes Stake in Nikola

September 8, 2020 by admin 1 Comment

GM’s plans for the future show a company willing to take risks.

Nikola Corporation and General Motors Co. announced a strategic partnership that begins with the Nikola Badger and carries cost reductions through all of Nikola’s programs, including: Nikola Badger, Nikola Tre, Nikola One, Nikola Two and NZT. As part of the agreement, Nikola will utilize General Motors’ Ultium battery system and Hydrotec fuel cell technology, representing a key commercialization milestone for General Motors.

Within only five days, the General Motors Company changed the course of its business in ways probably not foreseen by most automotive experts.

On Sept. 3, General Motors and Honda announced that the companies signed a non-binding Memo of Understanding (MoU) whereby the two would work toward establishing a strategic alliance in North America. That alliance would explore the two automakers sharing vehicle platforms and propulsion systems in a variety of core segments.

Five days later, General Motors announced a strategic partnership with Nikola Corporation, parent of Nikola Truck Company, an emerging manufacturer of electrified vehicles. As part of the agreement, GM takes an 11-percent stake in Nikola.

GM and Honda Expand Their Relationship

GM’s MoU with Honda was especially surprising, given the latter’s long-running independent course. Even as Nissan partnered with Renault and Mitsubishi to forge an extensive alliance and Toyota took stakes in multiple small Japanese manufacturers, Honda seemed content to stay the course.

But we’ve seen a willingness on Honda’s part in recent years to soften its resistance to collaborating with other manufacturers. Indeed, Honda joined GM’s battery module initiative in 2018, then followed in April 2020 with an announcement that the two manufacturers would jointly build a pair of all-new electric vehicles for Honda. The EVs are based on GM’s highly flexible EV platform powered by proprietary Ultium batteries.

Models powered by Ultium batteries feature a range of 400 miles or longer and are designed for Level 2 and DC fast charging. The second-generation Chevrolet Bolt EV, due out in 2021 as a 2022 model will utilize the new platform and battery system. A Cadillac Lyriq SUV will follow as will models for Buick and GMC.

The Honda-GM accord is a proposal, based on a joint committee composed of senior executives from both companies. The two will hold co-development planning discussions immediately, followed by engineering work set to begin in early 2021. Under the terms of the proposal, the two automakers will collaborate on building a variety of vehicles with a shared platform, including internal combustion and electric models. None of the models will be developed to serve other markets.

The automakers say that the companies will realize extensive savings in cost, including research and development (R&D) and engineering, and collaborating on purchasing.

Making a Case for Electrification

GM’s agreement with Nikola goes well beyond taking a stake in this upstart automaker. For example, the company immediately gains a $2 billion equity stake in Nikola, named for Nikola Tesla. Further, GM will engineer, validate, homologate, and build the Nikola Badger in both its battery-electric and fuel cell electric guises. Badger production is expected to commence by the end of 2022.

As a result of the strategic partnership, Nikola estimates it will save $4 billion in battery and powertrain ghosts over 10 years and an additional $1 billion in engineering and validation costs. As for GM, the company expects to receive at least $4 billion of benefits between the shares’ equity value, Badger contract manufacturing, supply contracts covering batteries and fuel cells, and EV credits that stay in place over the contract’s term.

GM and Honda have cooperated on projects dating to the beginning of this century. Since 2013, the two automakers have stepped up their cooperation.

Looking Ahead

Although the GM-Honda agreement must yet be finalized and is non-binding, the prospect of further collaboration between the two automakers is an enticing proposition.

We have no idea what vehicles the two manufacturers might build together, although it seems possible GM might perhaps gain car models, while Honda could benefit from GM’s truck lines. This is, of course, speculation but the possibilities are intriguing and will remain one part of a wider conversation involving electrification, mobility, technology, and collaboration.

Meet VinFast, an Emerging Automaker From Vietnam

July 18, 2018 by admin 3 Comments

VinFast aims to grow with Vietnam’s car market.

If you consider Vietnam, automotive manufacturing is not one of its strong suits. But with more than 93 million people, this southeast Asia nation is following a well-established passage taken by other emerging countries as consumers trade up from scooters and motorcycles to automobiles.

So far, the Vietnamese market has been served mostly by Chinese manufacturers, along with Toyota, Hyundai, Ford and GM. But the country’s leaders see an opportunity for a native manufacturer to take root and earn its own slice of the consumer pie. That company is VinFast, the automotive arm of the Vingroup, which is a leader in Vietnam’s construction and real estate sectors.

VinFast and GM

Indeed, VinFast has already inked an agreement with one automaker, the General Motors Company, to launch its nascent enterprise. In June, the two companies signed a strategic partnership whereby GM will transfer its Hanoi plant, dealer network and employee base to VinFast by the end of 2018.

As part of the transfer agreement, VinFast will produce small cars under a GM global license beginning in 2019. Further, VinFast will become the exclusive distributor of Chevrolet models throughout the country. In effect, GM is entrusting VinFast to further its own growth.

VinFast at the Paris Motor Show

But a strategic partnership with GM isn’t the only thing VinFast is doing to make a name for itself. For example, the automaker is working with the Pininfarina design and engineering company to develop its first two vehicles — a sedan and an SUV.

Just this week, VinFast released sketches of the new models and announced plans to unveil prototypes at the 2018 Paris Motor Show in October.

The two models will not be manufactured at the Hanoi plant. Instead, the company is building a new plant in northern Vietnam to accommodate the new models and others that will follow.

When the assembly plant is operational it will produce the two new models, with sales set to commence in September 2019. The company plans to saturate the domestic market before launching abroad a few years later. With a top capacity of 500,000 units, the new plant launches as consumer demand for passenger vehicles surges.

Company Leadership

Besides working with GM and Pininfarina, the company hired outside executives to build the enterprise. James DeLuca is the company’s Chief Executive Officer, who had a long history working at GM. He began his senior management career in 2002 as the plant manager for GM’s Fort Wayne Assembly plant in Indiana. From there, he headed the stamping operation in Pontiac, Michigan.

Beginning in 2008, DeLuca traveled to South Korea to head Product Quality for GM Daewoo. Following stints in China and Michigan, DeLuca retired from GM in 2016, ending his 37-year tenure with the company. But his retirement didn’t last long as VinFast appointed him CEO in September 2017.

DeLuca is one of four members of the company’s executive team. Le Thi Thu Thuy is the Chairwoman of VinFast and also serves as Vice Chairwoman of Vingroup. Le Thanh Hai is the CEO of VinFast Trading and Service, while David Lyon is the Executive Design Director. Both Hai and Lyon previously held senior positions with GM.

Ready, Set, Launch

VinFast’s $US1.5 billion investment in a new manufacturing plant, its collaboration with GM and the Pininfarina design relationship collectively underscore its purpose. By debuting its new models on a world stage, its mission as an automotive manufacturer should become clear.

Finally, with Vietnam’s gross domestic product (GDP) projected to rise by at least 6.5-percent annually over the next three years and car ownership expected to double within just a few years, VinFast’s launch couldn’t come at a better time.

Cadillac LTS and Other Luxury Rumors

August 12, 2014 by admin 3 Comments

A big sedan seems certain for Cadillac.

Cadillac Elmiraj — Add two more doors to the Elmiraj and you may get the Cadillac LTS.

The Cadillac brand’s US sales are down by nearly 1 percent through the first seven months of July 2014, in a market where some of its competitors are enjoying double-digit increases. While this trend is certainly not something GM is happy about, the long-term outlook for Cadillac seems bright.

In the interim, Cadillac has gained an all-new ATS Coupe, the next generation Escalade and a mild refreshing for the CTS sedan. Based on these changes its sales fortunes will most certainly reverse.

Flagship Cadillac LTS Sedan

What may be most significant for GM’s luxury brand are the persistent rumors about an all-new flagship sedan, one that could be based on the Cadillac Elmiraj concept coupe that headlined the 2013 Pebble Beach Concours d’Elegance. With the 2014 Pebble Beach show coming up this weekend, rumors are once again heating up.

Such rumors have the so-called Cadillac LTS debuting at the 2015 New York International Auto Show next April. The auto blogs point to an unnamed source high up in the GM management chain as confirming the findings (maybe the “source” is a clerk working at RenCen).

Before we look at the possibility of a Cadillac LTS we need to examine the market. That market is dominated by the Mercedes-Benz S-Class with the BMW 7 Series, Audi A8 and Lexus LS among its chief competitors. Mercedes prices its flagship from $92,000, much higher than the starting price for its competitors, which generally start in the $75,000 range.

Prestige and Profits

Flagship models provide two attributes: prestige and profits. These are not simply “halo” models, but are the faces for their respective brands. A good “looker” at the top of the brand attracts customers who may aspire to someday own a top end model or at least enjoy the association. As for profits flagship luxury sedans provide profits that rival pickup trucks. That would give GM an edge that neither Ford nor Chrysler has.

The Cadillac LTS or similar model would be built on the upcoming Omega rear-wheel-drive platform, complementing the Alpha platform that underpins both the ATS and CTS. GM would spread the Omega’s cost across other brands with Buick (Riviera?) and Holden (Commodore?) also likely recipients. Badge engineering, thankfully, seems dead as News Hub observed.

Possible Technical Specifications

The LTS would most likely offer an all-wheel-drive option. The base engine could be the same twin-turbo 3.6-liter found in the Cadillac XTS. A new generation of V-8 engines seems possible as well. And with GM committing to supplying more diesels to the US market, that option also seems possible. An 8-speed automatic transmission would be standard across the model line.

As far as interior amenities go, all the goodies found in current Cadillac models would be included and then some. The latest iteration of magnetic ride control might be introduced and the LTS could be outfitted with more autonomous features than any Cadillac model to date. These “goodies” are not based on mere speculation, but are among the auto trends we’ve been seeing within Cadillac.

Placeholder Cadillac XTS

As far as the future of the XTS, its alleged role as a “placeholder” may not be true. There may still be room for this model in the Cadillac line up despite the XTS’ size rivaling the CTS. The XTS might offer an appealing “step” from a more moderately-priced CTS to a full-blown Cadillac LTS.

Another argument for preserving the XTS is that it shares its platform with the Chevrolet Impala and Buick LaCrosse, therefore its costs have been wrung out across three model lines. XTS sales are down in the US, but were up by 58 percent in China this July. An ATS-CTS-XTS-LTS line up could prove a powerful punch to once again elevate Cadillac to world-class status.

Related Reading — Thrice Teased: Cadillac Sixteen, Ciel and Elmiraj

3 All-New Models for the Big Three in 2015

May 20, 2014 by admin 2 Comments

New 2015 models on the way.

The Big Three automakers continue to fight back in a wide open US market. GM remains the market leader, but Ford and Fiat Chrysler continue to boost market share in various segments, sometimes at the expense of each other. For 2015, all three automakers will have several new models to offer including the following three that are all-new and should boost sales.

Ford Motor Company — Lincoln MKC

Props must be given to Lincoln dealers who have suffered enormously since the Mercury brand was discontinued in 2011. With very few models to offer, Mercury-free Lincoln dealers have seen sales tumble and their profits with it.

Ford has promised to revive its luxury brand and began to make a positive stride last year with the introduction of the updated MKZ sedan. That model has helped sales, but Lincoln dealers want and need more. Fortunately, that wait is nearly over as the Lincoln MKC crossover utility vehicle debuts this June.

Never mind that the Lincoln MKC shares its platform with the Ford Escape. You will not find badge engineering here as the MKC has its own body, interior and many mechanical components that are unique to this model. Priced from $33,100, the MKC joins two other crossovers in the Lincoln line: MXK and MKT. Lincoln still sells its traditional body-on-frame Navigator, what will also be new for 2015.

Big Three: Lincoln MKC

A pair of EcoBoost engines (i.e., turbochargers, direct injection, variable valve timing) will be available with the MKC including a 2.0-liter four-cylinder engine that makes 240 horsepower and is also sold with the Ford Escape. New for 2015 is a 2.3-liter four that makes 275 horsepower and is available only with the all-wheel-drive edition. Standard adaptive suspension, bi-xenon headlamps, push-button transmission, and real leather and wood are among its highlights, features you won’t find in the Escape.

The Lincoln MKC serves one of the fastest growing segments in all of autodom: compact luxury utility vehicles. It will have many competitors including the Cadillac SRX, Mercedes-Benz GLK, Audi Q3, and the BMW X3. It should quickly become Lincoln’s best selling model, even topping the 40,000 units the MKZ is projected to garner this year.

General Motors Company — Cadillac ATS Coupe

Two years ago GM introduced the Cadillac ATS, a compact sedan that slotted below the popular CTS line. It was the first time since the Catera of the 1990s and the Cimarron of the 1980s that Cadillac has sold a compact model, with the ATS immediately proving a hit for the brand.

GM made it known back then that new ATS models would follow. The next body style for the ATS line is a coupe, a model that has the BMW 4-Series in its crosshairs. Comparable models from Mercedes-Benz, Lexus, Infiniti and Audi are also game.

Cadillac has priced its luxury 2+2 sport coupe from $38,900. What you get is a standard 2.0-liter turbocharged four-cylinder engine paired with a 6-speed manual or 6-speed automatic transmission. This engine makes 272 horsepower and 295 foot-pounds of torque. Rear-wheel drive is standard; all-wheel-drive is available.

Big Three: Cadillac ATS Coupe

You can also choose a 321-horsepower 3.6-liter V-6 engine paired with a 6-speed automatic. Brembo brakes are standard across the model line; magnetic ride control suspension is also available.

Cadillac describes the ATS coupe as a “true driver’s car” with four color themes available making use of Sapele wood, aluminum trim and leather. Its near 50-50 front to rear weight distribution, magnesium paddle shifters, speed sensitive steering, and independent suspension are designed to emphasize the thrill of the drive.

Cadillac sales have slipped slightly this year, but the addition of the ATS coupe and an all-new Escalade should help GM’s luxury brand bring in more customers.

Fiat Chrysler Automobiles, N.V. — Chrysler 200

Fresh off the official merger of Fiat and Chrysler to form Fiat Chrysler Automobiles, N.V., the combined corporate entity continues to bang out new models. One such vehicle is the Chrysler 200, a midsize sedan that has not competed well in a segment dominated by the Toyota Camry, Honda Civic, Nissan Altima and the Ford Fusion.

The Chrysler 200 made its debut in 2011, essentially a refreshed version of the previous Chrysler Sebring. The name change alone helped sales for a model line that also included a convertible. The convertible is no more, just a sedan will be offered.

The latest iteration of the 200 is not like any one previously offered. It is based on Fiat’s compact-wide platform, what underpins the Dodge Dart and Jeep Cherokee. That platform has been stretched and widened to accommodate the Chrysler, a model priced from $21,700.

Big Three: Chrysler 200

A 2.4-liter four-cylinder engine making 184 horsepower is standard. Also available is a 295 horsepower 3.6-liter V-6 engine. Both engines are paired with a 9-speed automatic transmission. New for 2015 is the available all-wheel drive, an improved infotainment system and other technologies, plus eight airbags.

Perhaps the biggest change for the 200 is how Chrysler is recasting the brand. In April, CEO Sergio Marchionne said that Chrysler is now its mainstream brand. In other words, it no longer competes with Buick and defunct Mercury, rather it is on the same playing field as Ford and Chevrolet.

Big Three and Other New Models

Auto Trends will have reviews of these and other new models as they pass through our press fleet. That information will be posted to our new car reviews section in the coming months.

Sleek Cadillac ATS Coupe Takes on Germany’s Best

January 14, 2014 by Adam Johnson 4 Comments

Cadillac has been invading German territory since 2002 when it released the first generation CTS sedan. That model line expanded to include a coupe, wagon and high performance variants, matching what BMW and Mercedes-Benz offer. Still, Cadillac needed a vehicle to slot below the CTS and beginning in 2013 it had one: the ATS sedan.

2015 Cadillac ATS Coupe

As expected the Cadillac ATS line is growing with the introduction of the 2015 ATS Coupe at the 2014 North American International Auto Show in Detroit today. The latest model has been designed to take on the BMW 4 Series and the Mercedes-Benz C-Class Coupe, two vehicles that define the segment. It is the first-ever luxury compact coupe from Cadillac, a new model that goes on sale in summer 2014.

Like the sedan, the 2015 Cadillac ATS Coupe is powered by a 2.0-liter turbocharged four cylinder engine upgraded to deliver 14 percent more torque over 2014 specifications. It is SAE certified at 272 horsepower at 5,500 rpm and 295 foot-pounds of torque at 3,000 to 4,600 rpm. Premium fuel is recommended, but it is not required.

ATS Coupe shoppers can also consider a normally aspirated 3.6-liter V-6 engine making 321 horsepower at 6,800 rpm and 275 foot-pounds of torque at 4,800 rpm. A six-speed automatic transmission is standard; a six-speed TREMEC manual transmission is available with the turbo. Cadillac says that the coupe will go from 0 to 60 mph in 5.6 seconds.

2015 Cadillac ATS Coupe

Dimension and Weight Distribution

The ATS Coupe, like the sedan, sits on a 109.3 inch wheelbase, but the vehicle measures approximately one inch wider and has shorter overhangs than the sedan. That design allows the coupe to claim a nearly perfect 50-50 front to rear weight distribution as well as a low center of gravity. The standard 18-inch wheels are a coupe exclusive.

Inside, the coupe brings forth several familiar sedan design attributes including a driver-focused cabin, handcrafted cut-and-sewn upholstered interior combinations, leather, aluminum, real wood, and carbon fiber treatments, and decorative stitching. Available features include fourth generation OnStar with Wi-Fi hotspot capabilities, Bluetooth connectivity, a voice-controlled audio system, SiriusXM satellite radio, a fully configurable head up display, and standard Bose premium audio with active noise cancellation technology.

The rear-wheel drive coupe features 2+2 seating with bucket seats up front and a split bench seat in the rear. Its 10.4 cubic foot trunk space is significantly less than the 15.7 cubic feet found in the 4 Series. Then again, the Cadillac has a spare tire while the BMW relies on run flats.

2015 Cadillac ATS Coupe

Available Safety Features

Both the ATS sedan and coupe offer numerous safety features including front and rear automatic braking that utilizes a combination of radar, camera, and ultrasonic technology to help the driver avoid low-speed front and rear collisions. A series of alerts are made and complete braking is attained if the driver does not act fast enough. Other features such as safety alert seat, lane departure warning, lane keeping assist, forward collision alert and a rear view camera are part of a Driver Awareness package.

The new coupe aligns with GMs strategy to compete more effectively against Europe’s finest automakers says Matt Keegan, editor and publisher of Auto Trends Magazine.

The ATS and CTS lines provide the 1-2 punch that Cadillac needs to attract luxury car buyers, Keegan says. The ATS, like the BMW 3/4 Series is the natural gateway to the Cadillac line, with the CTS offering a step up. Cadillacs position as a legitimate luxury mark continues to coalesce around these two model lines.

2015 Cadillac ATS Coupe

Pricing: To be Determined

Pricing for the 2015 Cadillac ATS Coupe will be announced closer to its release date. The 2014 sedan is priced from $33,065 to $58,760 with the coupes prices expected to align closely to the sedans.

GM: Federal Ownership Ends; Mary Barra Ascends

December 11, 2013 by admin 1 Comment

There may not be another car manufacturer in the world that can match GM’s flair for the dramatic. Back before the company went bankrupt, there were occasions when the automaker hired a marching band, brought in vintage models and augmented iron with celebrities to introduce a new or concept vehicle. GM’s debuts are less theatrical these days, but its inclination for building buzz remains, demonstrating a much more nuanced and disciplined approach instead.

US Treasury Sells GM Shares

This week, the federal government officially sold its remaining shares in General Motors, ending nearly five years of federal oversight of the company. No longer can the words “Government Motors” be honestly ascribed to GM, an appellation that management has been forced to acknowledge, but also desperately has wanted to see removed.

That removal came on Monday as the U.S. Department of the Treasury announced that it had sold its remaining share of GM’s common stock. No, the entire taxpayer investment has not been recouped. Yes, there is strong proof that rescuing GM had an overall positive impact on the economy as outlined by the Center for Automotive Research in its study published this week.

Mary Barra Appointed CEO

And if on cue, GM followed up the Treasury Department’s announcement with one of its own, revealing that its current CEO Dan Akerson would step down in Jan. 2014 and be replaced by Mary Barra.

That news spread like wildfire, with “Mary Barra” quickly trending on Twitter and staying there for much of the day. It also confirmed that Dan Akerson’s earlier pronouncements that Barra was a GM CEO candidate went beyond mentioning a woman’s name in a sea of men. Barra was elected by GM’s Board of Directors to become the next CEO of the company, a position that she will assume on Jan. 15, 2014. She will also join GM’s Board.

Akerson was expected to leave GM by next summer, but moved up his succession plan so that he can spend time with his wife who was diagnosed recently with an advanced stage of cancer. Akerson led the company to record profits and has it competing with Toyota and Volkswagen for global sales leadership.

GM Executive Shuffle

With Mary Barra moving up, GM has also moved several other executives around. Theodore (Tim) Solso will succeed Akerson as Chairman. Dan Ammann, currently executive vice president and chief financial officer, will become president, tasked with managing GM’s many regional operations as well as overseeing the Chevrolet and Cadillac brands in addition to GM Financial.

Mark Reuss, a name often floated as Akerson’s replacement, will move into Barra’s current slot. Currently, Reuss is executive vice president and president, North America.

Alan Batey, currently senior vice president, Global Chevrolet and US. Sales and Marketing, will move into Reuss’ slot. He also has been named Executive Vice President and President, North America.

Steve Girsky, vice chairman, Corporate Strategy, Business Development and Global Product Planning, will move to a senior advisor role, then leave the company in April 2014. Girsky will remain on GM’s Board of Directors.

Mary Barra: Who is She?

Mary Barra, 51, has been GM for 33 years, rising through the ranks in various departments including manufacturing, engineering and senior staff positions. Barra’s leadership in turning around GM has been recognized within and without the company, as she has helped to breathe fresh life into the company’s product development process. Barra has also led the effort to improve product quality ratings and customer satisfaction.

Barra began her tenure with GM while in college, working as a co-op student for Pontiac while attending Kettering University (formerly the General Motors Institute). She graduated with a degree in Electrical Engineering, later earning an MBA from Stanford.

Before her latest appointment, Mary Barra had already attained the highest role a woman has ever reached in the auto industry. In 2013, Forbes rated Barra No. 35 on their list of the World’s Most Powerful Women, rising six spots from 2012. Come 2014, her ascendancy to CEO of GM will fuel her rise further, perhaps putting her among the Top 10 women of the world.

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Slipping Sept. 2013 Auto Sales: What’s Up With That?

October 3, 2013 by admin 1 Comment

US auto sales dropped by 4.2 percent for Sept. 2013, based in part on two fewer selling days than in Sept. 2012. Still, the month-over-month sales drop was the first the industry has seen in 27 months, perhaps demonstrating how fragile the economy is. Notably, the automakers released their figures on the same day that the federal government launched its Health Care Marketplace, a system full of glitches and problems that kept millions of Americans from signing up.

down arrow — Going down: auto sales trend lower for Sept.

Obamacare and a Government Shutdown

And please remember that you have heard this here: Obamacare will present a huge drain on the economy and it will affect auto sales beginning in 2014. As Americans wake up to the reality of higher medical costs and fines for not participating in an unwieldy and untenable health care system, they will also see that their funds are being squeezed. Squeezed consumers delay their purchases especially for big ticket items such as cars.

Also weighing on most everyone’s mind is the federal government shutdown. Ford Sales Analyst, Erich Merkle, expressed confidence that a fix would be found stating, “We remain optimistic that our Government leaders will come together and they’ll ultimately support a solution that works for everyone.” That optimism could change if consumer confidence takes a hit.

GM Remains On Top, Just Barely

General Motors retained its position as top selling automaker in the US for the month, but barely. GM sold 187,195 units to Ford’s 184,452, with Toyota, Honda and Nissan falling as well. Chrysler sales were up a modest 0.7 percent, continuing a string of 42 consecutive months of increasing sales. Year-to-date sales still has GM on top followed by Ford, Toyota, Chrysler, Honda and Nissan. Subaru and Porsche posted double-digit gains for the month; BMW sales rose by 8.4 percent.

GMC Sierra Denali

Ford and Chrysler both enjoyed robust sales of its large pickup trucks. For Ford, the automaker enjoyed its fifth consecutive month of F-150s sales topping 60,000 units for a 10 percent gain that positively impacted its monthly figures. On the Lincoln side of the house, the all-new MKZ sedan is seeing some traction with sales up by 12 percent.

Ram sales of 28,145 units represented an 8 percent increase over Sept. 2012, effectively carrying the Chrysler Group into the positive column. Strong Dart, Challenger and Charger sales paced Dodge, but Jeep sales fell 5 percent as dealers await the 2014 Jeep Cherokee held up because of production delays attributed to transmission problems.

GM’s drop may be attributed largely to a dip in its large pickup truck sales, blamed in part to the lack of availability for some models. The Chevrolet Silverado and GMC Sierra are all-new for 2014, while the Ford F-150 is a model year away from its next generation change. Ford slapped heavy incentives on the hoods of its trucks too, with discounts of $4,000 or more for 2013 models. GM just announced that it was placing a $4,500 cash incentive on its remaining 2013 Chevrolet Silverado inventory.

Toyota, Honda and Nissan Fall

Toyota sales fell by 4.2 percent, but the automaker noted that its day-over-day sales increased for the month. It also reiterated what others have said: that two fewer selling days detracted from what was otherwise a strong September. The Toyota Camry led in sales, with nearly 32,000 units sold followed by the all-new Corolla with sales topping 23,000 units. On the Lexus side of the house, the all-new 2014 Lexus ISrecorded a 42 percent sales increase.

Lexus IS sales surged by 42 percent in Sept.

Honda’s 9.9 percent sales drop cannot be attributed solely to two fewer selling days. Accord sales were up 13 percent to over 25,000 units sold and, surprisingly, sales of the Honda Ridgeline truck climbed for the seventh consecutive month. Sales of the Honda Odyssey and Crosstour fell a combined 40 percent and sales of select Acura models also dropped significantly.

Nissan sales slipped by 5.5 percent with its Maxima, Altima and Sentra models each losing market share. Demand for its Frontier pickup truck increased by 7 percent, while Versa sales increased by more than 9 percent on the strength of its new Note hatchback. Infiniti sales dropped by 4.3 percent with the all-new Q50 presenting a bright spot as more than 4,800 units have been sold since the vehicle became available in early August.

Like its competing manufacturers, Nissan was quick to look for a silver lining in its sales figures. “September was a unique month with fewer selling days than the prior year with the Labor Day weekend falling into August sales reporting for the first time in several years. While this skewed year-to-year comparisons we are optimistic that strong auto sales will continue into the fourth quarter,” stated Fred Diaz, divisional president, Sales and Marketing, Service and Parts, Nissan U.S.A.

Subaru’s auto sales continue to outpace the industry.

Auto Sales: Best of the Rest

The rest of the auto industry results offered a mixed bag, but generally provided a blend of slightly falling and rapidly declining sales. Hyundai sales were down by 8.2 percent while its Korean cousin saw its sales plunge by 21 percent. Still, Hyundai managed to record its second best Sept. ever. Kia sales fell across the board as the automaker awaited the introduction of seven new or updated models over the coming months. It sold 926 units of its all-new and premium Cadenza sedan, perhaps the brightest light in its current line up.

BMW continues to put some distance between itself and Daimler although both companies recorded a sales increase for the month. Sales of Mitsubishi, Mazda, Volkswagen and Volvo fell while Jaguar Land Rover joined Subaru and Porsche in posting gains for Sept.

On Sale Now: Chevrolet Volt

June 12, 2013 by admin 4 Comments

Electric vehicles are a tough sale as high prices keep customers away. The Chevrolet Volt is a plug-in hybrid electric vehicle, one that does not have the range restriction of pure EVs. Still, its steep sticker price has made the Volt a tough sell, something that GM hopes to overcome by offering incentives on 2012 and 2013 models.

Chevrolet Volt Rebates

With a base price of $39,995, the Chevrolet Volt is priced more than twice as much as the Chevrolet Cruze, the model it shares its platform with. The Volt, however, comes with a $7,500 tax credit, effectively lowering that price to $32,495. That’s still about $15,000 more than the Cruze and higher than what some pure electric vehicles such as what the Mitsubishi i-MiEV cost.

Chevrolet Volt

An earlier edition Chevrolet Volt.

Earlier this week, GM announced that it was slapping incentives on the hood of every 2012 and 2013 Volt model. Buy a 2012 Chevrolet Volt and you get a $5,000 cash rebate. Choose the 2013 Volt and you get $4,000 cash back. Some states offer incentives too, which means your final cost for a Volt may drop down to just north of $25,000. This for a vehicle with an approximate 40-mile electric-only driving range; a 1.4-liter gas engine kicks in when the electricity has been depleted.

Pricing and Lease Deals

GM’s move comes as its competitors drop prices on EVs as well. For instance, the five-passenger Nissan LEAF S can be had for as little as $21,300 when all tax savings are taken. Mitsubishi is currently offering a lease deal on the 2012 i-MiEV; a 2013 model has yet to be introduced. Honda has a special lease deal in place for its Fit EV and the Ford Focus Electric offers a similar deal.

EV sales targets have missed the mark across all model lines. Expectations were heady more than three years ago just before the first models rolled out. Nissan has had to scale back its production plans even as LEAF production moved from Japan to Tennessee. GM had high hopes that the Volt would usher in a new era as buyers flocked to the thriftiest vehicles. Embracing green technology, however, comes at a steep price, what many financially pinched Americans have decided is not a priority.

California Requirements

Although the Obama administration would love to see more EVs on the road, it is California that is pushing — even demanding — car manufacturers to fall in line. To keep selling cars in the Golden State, manufacturers must also offer an electric vehicle. So far, Hyundai has managed to skirt that ruling, but as its sales continue to rise it can no longer drive through that loophole.

Indeed, the Hyundai BlueOn appears headed stateside, a vehicle the Korean manufacturer hoped it would not have to export. The company still expects to begin shipping its first hydrogen-powered fuel cell cars in 2015, a model that would meet California’s requirements. However, the Hyundai EV looks like a go, but it may lose its odd name before it hits our shores.

Cadillac ELR

Even as GM has trouble selling its Chevrolet Volt, a second model will debut early in 2014. That model is the Cadillac ELR, a luxury coupe with chiseled features. Its price has not been announced, but likely it will sell for at least $60,000. That’s a price the well-heeled buyer can afford, but their willingness to buy one may not align with GM’s expectations.

See Also — Global Debut: BMW i3 Electric Vehicle

Photo courtesy of the General Motors Company.

Are Driverless Cars Really That Far-Fetched?

June 10, 2013 by Mark Martin Leave a Comment

In 1939, American theatrical designer Normal Bel Geddes put together his vision of the future at the New York World’s Fair. The showcase was called ‘Futurama’ and allowed Bel Geddes to highlight his vision of New York in 1959; featuring city roads filled with fully autonomous electric vehicles.

His vision went on to influence countless sci-fi films, TV shows and books in the ensuing years, but his dream has remained little more than a fantasy. However, all of that is about to change with eight different major companies each working on driverless car solutions.

So, who will be first company to bring a driverless car to the market?

Is Google Winning?

Google’s driverless car solution is undoubtedly the most high profile of them all. The Internet giant has been working on its concept since 2005 and has already completed 140,000 miles of on-the-road testing with a driverless Toyota Prius, with only one incident. That incident happened when the test car was hit from behind while stopped at a traffic light by another driver.

The Google solution uses a very prominent laser, GPS and a video camera solution on the roof of the vehicle which maps out the surrounding area and any other obstacles such as road users or pedestrians. This allows the vehicle to navigate safely to a set destination without incident.

Google has estimated that the technology will be made available to the general public between 2016 and 2018. However, there are many questions that remain unanswered regarding how the technology will implemented.

Will Google team up with a car manufacturer and supply them exclusively with Google driverless technology? Or, will this be a standalone device which all road users will be able to buy and fit to their existing vehicle? The largest profit potential probably lies with the second option and this would also undoubtedly have the biggest immediate affect on the motoring world.

Is Fully Autonomous the Right Way to Go?

Driverless cars offer many benefits. For one, driving standards would be significantly improved on the roads. This would not only reduce congestion issues sparked by increasingly frequent accidents, but also reduce car insurance premiums for motorists as it is likely that fewer claims would be made if human errors were eradicated from the equation.

However, not everyone is completely happy with the prospect of putting their lives in the hands of a computer; regardless of the success of the Google solution thus far. A number of manufacturers are therefore working on autonomous vehicle solutions which only work at low speeds.

Mercedes-Benz, for instance, has plans to release an S-Class model later this year which is equipped with a driverless car solution. The system will operate the car at speeds below 25 mph to aid with tedious inner city driving.

Mercedes is leading the way in the race to be first to market with this solution, but it is not quite as advanced at the moment as a solution being worked on General Motors. The American colossus is developing a solution which is capable of dropping off and picking up its owner, allowing motorists to go off to their meetings or go shopping while the car parks itself. The owner will then be able to specify a pick-up location and time using a smart phone app without actually being in the vehicle. General Motors is currently estimating that this very promising system will be available on its vehicles by 2015.

Will it Take Off?

There is widespread pessimism about driverless cars, with many people not being overly keen to rely on driverless cars at high speeds. The inner city and self-parking solutions being developed by General Motors might therefore be the right way to go at the moment; helping motorists avoid some of the aspects of driving which often prove to be the most frustrating.

Nevertheless, as with any innovation, it will still take a significant amount of time for driverless cars to become mainstream and it would, of course, only be available on cars produced by limited number of manufacturers.

The prospect of Google making this a standalone device which can be added to any existing vehicle offers perhaps the best chance that driverless cars have on becoming the norm over the next decade.

Driverless Car Infographic

MoneySupermarket has put together the following infographic, summarising all of these findings. However, perhaps the most surprising thing to come out of this is the realisation that driverless cars are far closer to becoming a reality than has been generally acknowledged.

Image Source: MoneySupermarket Car Insurance

GM, PSA Peugeot Citroën Hash Out Strategic Alliance

January 27, 2013 by admin 1 Comment

Last year, the General Motors Company and PSA Peugeot Citroën announced a global strategic alliance, but the details of that agreement were not fully made known. That is because the two car manufacturers were still examining how best to move forward in a declining European market where most of the planned collaboration would be put in place.

Brussels Meeting

At a meeting in Brussels last week, Steve Girsky, GM Vice Chairman and Philippe Varin, Chairman of the PSA Peugeot Citroën Managing Board, provided further details about the alliance. The announcement follows work completed this past December to hash out common vehicle projects, logistics and purchasing agreements that are the foundation of this alliance.

Each partner will be responsible for developing certain vehicle platforms that will be used to power future Opel/Vauxhall and Peugeot Citroën models.

Model Platforms

Peugeot Citroën will be responsible for providing the platform to underpin a future C-segment (compact) multipurpose Opel/Vauxhall vehicle and a crossover utility vehicle for the Peugeot brand. PSA will also supply the B-segment (subcompact) platform for MPVs designed for both car manufacturers. The development of such a vehicle will be handled by GM, however.

Both manufacturers will co-develop subcompact cars that will comprise a new generation of Opel/Vauxhall and Peugeot Citroën vehicles. In this instance, the cars will be built for Europe, but also sold in markets beyond the continent. The companies plan to explore ways to achieve greater collaboration in emerging markets such as in Latin America and in Russia.

Engine Collaborations

GM and PSA will also jointly develop a new generation of tiny engines, three cylinder gasoline engines that will be derived from PSA Peugeot Citroën’s EB current line.

Not mentioned is the possible wider distribution of PSAs new hybrid air technology, announced last week and shared by Auto Trends. It is quite possible that PSA will want to share the costs of this project with perhaps licensing the same for future Chevrolet, Opel, Vauxhall and Holden models.

PSA Peugeot Citroen

See Also — Peugeot Prepares for its U.S. Return

Joint Purchasing

Another area where the two partners will benefit from is with purchasing in Europe. The two companies have set up a joint purchasing organization that is set to begin soon. A GM executive will lead this operation initially followed by a pair of executives from each company later on. The positions of Vice President Purchasing and Deputy Vice President Purchasing will be rotated between the companies.

For GM and PSA, the alliance is something both companies want and need to succeed. GMs European operations have been costing the company dearly while PSA struggles to remain competitive in a market that has been in decline. By working together, the two companies hope that they can enjoy some mutual relief and begin to put their financial problems in their respective rear view mirrors.