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Rivian Automotive Draws Interest From GM, Amazon

February 13, 2019 by admin

They were the darling of the 2018 Los Angeles Auto Show. Rivian Automotive, an upstart electric-vehicle company based in Michigan with a plant in Illinois, may soon bring a pair of electric vehicles to the market. The automaker showcased a pickup truck and an SUV in L.A. and may soon have the backing of a pair of very different industry giants as it moves toward production.

Amazon, GM May Invest in Rivian

News reports this week indicate that both GM and Amazon are looking at taking stakes in the fledgling automaker. GM sells more passenger vehicles in America than any other company. Amazon is the leader in online sales and has its hands in a variety of businesses. Separately, the two companies would benefit from a Rivian stake. Together, their funding would provide the backing to ensure this Tesla-fighter gets off to a great start.

The Rivian investment would value the company somewhere between $1 billion and $2 billion dollars, even without having built a single vehicle.

The company launched in 2009 and was essentially developing under the radar, while mostly everyone’s attention was on Tesla Motors and other industry happenings.

At the L.A. show, Rivian showcased the R1T truck and the R1S SUV with both riding on the same skateboard platform. Powering each model is a quad-motor system with each motor adjoined to a wheel. Three battery size options — 105 kWh, 135 kWh, and 180 kWh — will launch the line, with a range of 240, 310, and 410 miles, respectively.

GM and Electric Vehicles

GM’s interest in the company may seem curious, given its position in the market, especially with its fleet of pickup trucks. GM builds more pickup trucks than its rival Ford, although the latter claims the best-selling model in the Ford F-150.

GM has the ability and desire to electrify its trucks, but purchasing a stake in Rivian would go far in fulfilling its own electrification needs without additional investment. Depending on how a deal is set up, Rivian’s sales totals could become GM’s. This would also go far in enabling GM to meet federal fuel-efficiency guidelines without disruption to its core operation.

Amazon’s In-House Fleet

Amazon’s involvement may seem surprising, but like other tech giants, including Apple and Google, the company is diversifying into many different fields. Further, Amazon has its own fleet of delivery vehicles, which may one day include electric models.

Owning a stake in Rivian would smooth that transition. It would also send a warning shot across the industry bow that Amazon is here to play (behind Alexa, of course). This might also signal stronger cooperation between tech and automotive giants, with perhaps the former investing heavily in the latter to further electrification and roll-out autonomous vehicles. We may see a new disruption that won’t necessarily sink established players but transform them.

See Also — About EV Maker Evian

Rivian Automotive: Digging Deeper

So, why isn’t Rivian considered vaporware by industry critics? For a number of reasons, beginning with its founder, Robert “RJ” Scaringe. Scaringe is a graduate of the Massachusetts Institute of Technology, where he achieved a doctorate in mechanical engineering.

In 2009, he formed Mainstream Motors, which was later renamed Avera Automotive. The company had originally set out to build a fuel-efficient gas-powered car but eventually transitioned to electric vehicles with an eye also on vehicle autonomy. Along the way, the company adopted its present name, won several rounds of funding, hired staff, and acquired the former Mitsubishi manufacturing plant in Normal, Illinois, for a song.

Since the L.A. Auto Show, analysts have looked closely at Rivian and most like what they see. Many compare Rivan with Tesla, but not at the CEO level, at least not in terms of bombastic behavior. While Musk has been making outlandish statements for years, including one that has led to an SEC investigation, Scaringe has quietly been building his business, conducting few interviews (including this one with Forbes), and readying his vehicles for production starting in 2020. And that’s with or without funds from GM or Amazon.

See Also — Hold Fast: VinFast Does Paris

Photos copyright Rivian Automotive.

First Half 2017 US Auto Sales Highlights

July 3, 2017 by admin 1 Comment

Sales are down, but a few manufacturers are enjoying success.

June’s auto sales figures came out today and for people taking an extended four-day weekend to celebrate America’s Independence Day, poolside chatter may have silenced the news.

Nevertheless, some of us are on duty — including yours truly — tracking certain auto trends or should I say sales trends, which we’ll amplify here.

To that end, the following are the chief takeaways for the first six months of the year as well as my guess on what the remainder of the year may look like.

2018 Volkswagen Tiguan — New models such as the 2018 Tiguan should help Volkswagen finish strong this year.

1. The sky isn’t falling, but sales are slipping.

US auto sales are down 2.1 percent year-to-date through June 2017, what represents only a modest decline (8,456,896 v. 8,641,718). Still, experts now see yearly sales falling short of the 17 million mark and that concerns some.

One big concern doesn’t have much to do with sales numbers, but how those numbers come about. Specifically, customers are buying in part because of big, costly, profit-eating incentives. Coinciding with June’s sales release story, Automotive News reported that the average new car incentive offered by manufacturers was $3,550 in June, up slightly over the previous month, but 9.7 percent higher than a year earlier.

Price discipline is something automotive executives talk about and insist that they’ll follow as sales begin to slide. But, if the dam breaks, incentives may push ever higher — that’s terrific news for consumers, but not so much for each automaker’s bottom line.

2017 Lincoln Continental — Continental sales continue to power Lincoln’s renaissance.

2. Is Tesla on the brink?

Tesla Motors has long enjoyed out-sized news coverage despite its relatively minuscule sales. Indeed, for a company that recorded just 22,000 units sold in the second quarter, it is receiving a lot of press. As a point of comparison, Ford sells as many F-150s in about 10 days.

But Tesla is the darling of the stock market, environmentalists, and technology fans, so it merits attention. Moreover, CEO Elon Musk dropped a bomb today when he said that the Tesla 3 is ready for production, with the first model slated to roll off an assembly line this Friday according to Reuters. This means the $35,000 sedan has received federal approval and the first 30 people who ordered one will take delivery by the end of the month.

Importantly, this will be the first time Tesla released a model on time. Also of importance, the all-electric automaker anticipates production ramping up fairly quickly, hitting 20,000 units per month by December. Heck, this long-time doubter may soon become a true believer if Tesla pulls this off.

Tesla Model X sales may quickly fall behind Model 3
sales when the compact sedan debuts this month.

3. What’s up with Jeep?

Fiat Chrysler is not having a banner year. Sales are down 6.7 percent with only Ram (up 7.6 percent) showing an increase year to date. This also means Jeep is down and that brand’s 12.7 percent sales drop accounts for more than half of FCA’s first-half pull back.

That Jeep sales are down is a curiosity. Customers are shifting their purchases to SUVs and that’s all that Jeep makes. A new Compass is out, but sales are down by 49 percent. Patriot sales are also down by 49 percent, but that model is being phased out. Cherokee sales are down 19 percent and that represents yet another drag on the brand.

The good news for Jeep is that an all-new Wrangler is due by year-end. That release alone will begin to turn around sales, but it may not be enough to offset the earlier losses.

Two overarching concerns about the brands are as follows: 1), Jeep pricing is high on some models, such as the Cherokee. Customers are price sensitive and will look elsewhere if they find a better deal. 2), Jeep quality routinely trails nearly everyone. Although the quality wasn’t a factor when sales were robust, it may be a larger factor than before.

2016 Jeep Renegade — Renegade sales aren’t enough to offset Jeep’s decline this year.

4. Nissan may overtake Honda.

In most every other market in the world, Nissan outsells Honda. In the US, Honda almost always beats Nissan and in some years, decidedly so.

Nissan has started the year strong before, only to see Honda slip past them once summer ends and sales pick up steam in the fall. That happened last year, but this year things are looking up for Nissan. And we’re not including Mitsubishi sales in that number even though Nissan now has a controlling interest in the junior automaker.

Last year, Nissan had a 5,700-unit lead at the halfway mark. This year, its edge is almost 20,000 units. Rogue sales alone may give Nissan the victory as sales are up a whopping 31.4 percent to 195,689 units. There’s a very good chance Rogue sales will top 400,000 units, even dethroning the Toyota Camry as America’s best-selling “car” in the process.

2017 Nissan Rogue — This compact Rogue is helping Nissan to a greater share of the sales pie.

Moving Forward

My best guess is that sales will fall this year and could take a nasty tumble if the stock market has a major correction. Automakers say they always anticipate a drop, but until it happens, they plan for ever-increasing sales.

Nissan, Jaguar Land Rover, Subaru, and Volkswagen seem like the best bets to gain share this year, along with specific brands such as Ram, Buick, Lincoln, Audi, and Porsche also benefiting.

See Also — US Auto Trends: First Half 2016

Book Review: Preston Tucker

April 17, 2017 by admin 3 Comments

…and His Battle to Build the Car of Tomorrow.

Preston Tucker may not be a name familiar to people outside of the auto industry or the business world, unless you happened to watch the 1988 movie, “Tucker: The Man and His Dream.”

I never saw the movie, but have been long familiar with the story. Or at least I thought so.

That is until I read the book, “Preston Tucker and His Battle to Build the Car of Tomorrow,” by Steve Lehto (Chicago Review Press; 272 pages; $27,99; ISBN: 978-1-61374-953-1). In effect, Lehto exposed the entire story, going well beyond the man’s aspirations to show how industry leaders, politicians, and regulators colluded to destroy the company and perhaps the man who ran it.

I must say that the author’s story was infuriating — not for how he illustrated it, but for the hard truths exposed. Tucker himself weathered injustice after injustice as the three largest automakers of that era — General Motors, Ford, and Chrysler — did everything they could to wreck Tucker’s dream.

Unfortunately, the Big Three succeeded.

Attorney and Industry Expert

Preston Tucker and His Battle to Build the Car of Tomorrow To his credit, Lehto brought not just an investigative touch to the story, but his legal expertise. Indeed, he is not only the author of the “Lemon Law Bible,” but he’s a practicing attorney based in Michigan. His website reveals his background in lemon law and consumer protection, areas where the auto industry has made significant changes following years of neglect or willful ignorance.

Preston Tucker was the consummate entrepreneur, born in 1903 just outside of Detroit. That proximity to Motor City meant that he had access to the emerging industry and everything related to it. Early on, he managed a service station near where he grew up with his wife, Vera. While Vera managed the station during the day, Preston worked on a Ford assembly line.

When the service station lease ended, Tucker quit Ford, joined the police force, then moved on to sell Studebakers, then Stutz and Chrysler. Stints at Pierce-Arrow and Dodge should also be counted, before his interest in race car development and military vehicles followed.

WWII: An Opportunity Emerges

During the Second World War, America’s car companies quit producing passenger vehicles and became assembly lines for all sorts of military vehicles and hardware. As the war labored on, pent-up demand for new vehicles surged and by the time the war ended, consumers were looking for new designs.

Unfortunately for the traditional manufacturers, the only “new” cars planned were based on designs used before the war. It would take several more years before the pre-war styles were retired.

A New Automaker: Tucker Corporation

Preston Tucker saw an opportunity and formed the Tucker Corporation even before the war ended. In quick succession, Tucker assembled a group of industry leaders to launch his enterprise, based on a 1946 design of the car. Soon, a “Tin Goose” prototype followed and the company acquired its first manufacturing plant.

But problems and opposition arose early on, including some of Tucker’s own making. Known as a consummate salesman, Tucker easily endeared himself to others and did an outstanding job of promoting the company’s stock. However, he soon found that the Securities and Exchange Commission (SEC) would scrutinize the company, launching a formal investigation.

It is at this point in the story that the Tucker Corporation was racing against time. The company needed to get vehicles produced to convince detractors that production-ready models were possible. At the same time, at least one Michigan politician was hell bent against Tucker, and quite possibly in the pocket of at least one automaker threatened by what the Tucker entity might become.

Tucker 48: The Car of Tomorrow

What became known as the “Tucker 48” was truly a state-of-the-art conveyance. Tucker envisioned a car that wasn’t just modern, but equipped with safety equipment not offered in that day.

A padded dashboard, disc brakes, a pop-out windshield, and a third headlight which swiveled when taking corners, were just a few of the safety features offered. Its rear-wheel, rear-engine design was unusual too — altogether, the Tucker 48 had the potential to not just shake up the industry, but to transform it. It became known as “the car of tomorrow” — a stark contrast to the aged designs offered by Detroit.

I won’t go into all the details about how the Tucker Corporation unraveled — you need to read the book — but I will say that there were enough doubters, backstabbers, and ne’er-do-wells to undermine the company. Sadly, the media was complicit, launching baseless critiques of the car or advancing a disproven narrative, e.g. — the car could not drive in reverse.

That Tucker was able to get 51 cars to the market before the whole thing crumbled is a tribute to the man. That there were only 51 cars built is a crying shame — without much interference, the industry could have transformed much faster, delivering safer cars and saving thousands of lives.

But consider this: safety features are costly and manufacturers long put share values above consumer safety, a problem that isn’t as prevalent today, but it still does exist.

The End of the Road

After several years of wrangling with the opposition, Tucker found himself without a company and with people launching civil suits against the company and himself, including dealers who lost their investment.

Though Tucker prevailed, he was destitute, yet he maintained the dream of launching a new company. At the same time, he was never quite himself and was later diagnosed with lung cancer, passing away at age 53 — just eight years after launching the Tucker 48.

Shades of Musk and Tesla?

There is much that can be gleaned from Letho’s work, which I think has an important place in chronicling Tucker history, even without the foreword by Jay Leno.

Some compare Tucker’s rise and fall to Elon Musk, founder of Tesla Motors. Although Musk is similarly imbued with entrepreneurialism, his personal wealth and the very favorable government backing for his electric vehicle initiative means comparisons between the two stops there. Indeed, although Musk’s long-term success is still in doubt, at least he hasn’t faced the same insurmountable headwinds as Tucker.

And that’s putting it all very mildly.

Tesla Model X Quality Woes Amplified

April 21, 2016 by admin 1 Comment

Tesla’s second full-production model encounters hiccups early in the rollout process.

2016 Tesla Model X. — Tesla Model X (photo copyright Tesla Motors).

The sheen is off of the Tesla Model X. The all-electric sport utility vehicle, introduced at the end of September 2015, was supposed to give Tesla a model rivaling the quality and the plaudits of the Model S sedan. Instead, what we have here is a vehicle that is falling short in the eyes of some, leading to many types of complaints from consumers.

Indeed, those complaints cover everything from the rear falcon-wing doors to the huge infotainment screen, with the former failing to open or close and the latter reportedly freezing repeatedly. These and other problems are fixable and Tesla’s service staff has responded admirably thus far.

What isn’t easily rectifiable is a design flaw. Specifically, the SUV’s distinctively constructed curved windshield distorts street lamps, headlights, and taillights at night according to Consumer Reports. As a result, drivers are finding themselves distracted and fatigued, unable to safely evaluate the distance between vehicles.

First-year quality woes are not uncommon in the auto industry. In fact, experts including Consumer Reports routinely advise people to avoid such models until the kinks are worked out. Although only a few thousand Model Xs have been built to date, the problems seem magnified, especially as customers take to the message boards to share their complaints.

Among the many complaints lodged are the following:

The third-row seat latch can become undone and fold forward in an accident. This problem has resulted in a recall of 2,700 vehicles. Tesla blames its supplier for the mistake and says the supplier will pick up the cost of the repairs, what it expects to be completed on a rolling basis over the next several weeks.

Some customers have also reported malfunctioning second-row seats, a problem that hasn’t been specifically spelled out. A discussion on the Tesla Motors message board indicates most respondents think the problem is exaggerated, although some agree larger sun visors are warranted.

Uneven sheet-metal panel gaps is another identified problem, one that has previously dogged the Model S. Some of the panel gap complaints, however, seem attributable to pre-production models what may inadvertently raise the problem quotient of this model higher than it really is.

Tesla has received praise for its AutoPilot hands-free driving capabilities, a feature that self drives the car. As long as the road line markings are clear, the SUV stays in its lane. In one report, a Model X owner said he was forced to take command of the steering wheel when the road’s shoulder ended as the SUV was not able to detect that.

Repair Your Tesla Model X

Like all manufacturers, Tesla Motors keeps people informed about all pending recalls. Service bulletins are issued to Tesla stores (dealers) and many repairs are handled at the local level. The company operates an Approved Body Shop Network, ensuring that all technicians are sufficiently trained to handle complex repairs, including aluminum welding.

All Tesla models are covered by a 4-year, 50,000-mile new vehicle warranty and an 8-year unlimited mile drivetrain and battery warranty. Annual inspections are recommended or once every 12,500 miles. Like other manufacturers, Tesla also offers extended warranty plans of 3-, 4-, and 8-years. These prepaid plans cost $1,325, $2,100, and $4,000 respectively.

Tesla Motors Considerations

In other Tesla news, the automaker claims more than 400,000 pre-orders to date for the Model 3. That’s far above the company’s expectations and the advanced orders don’t seem to be stopping. For customers desiring to order the compact sedan, a $1,000 fully refundable deposit is required. The number of pre-orders reflects global demand; American buyers who order and take delivery early, may be eligible for a $7,500 federal tax credit in addition to whatever state incentives may be available where you live.

Recent — The 2017 Ford Escape by the Numbers

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 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.

4 Lesser Known Facts About the Tesla Model X

October 13, 2015 by admin 1 Comment

The Tesla Model X is a 7-passenger, all-electric sport utility vehicle and has already been deemed the fastest (and cleanest) SUV on the planet. This second model from Tesla Motors (third if you count the limited production/availability Tesla Roadster) was introduced in late September and has promptly gone on sale.

While most of us won’t be able to afford this six-figure SUV even as less costly versions follow next year, we can only dream about owning one or at least seeing its falcon-wing doors in action. Lots of information about the Model X has been dispensed over the past few weeks, including the following lesser known facts.

1. Your Model X may protect you from a bioweapon. Or not.

It has been said that paranoia is a destroyer (with apologies to the Kinks). But what if THEY are really out to get you? Well, Tesla Motors thought about that problem when crafting the Model X.

Specifically, a button located on the dashboard when activated is designed to protect you and your passengers from pollution, viruses and bacteria. Inscribed with the international symbol for biological hazard, medical grade air filters are activated to provide life-saving protection.

But that claim has been disputed with Gizmodo calling out Elon Musk. Although any HEPA filter will protect against bacteria agents such as anthrax or the plague du jour, it won’t stop viruses, which are too small to be caught by such filters. Yes, the Model X’s filters probably do provide hundreds of times the filtering capacity of standard filters, but they’re not perfect. If someone is intent on doing you harm, they will probably find a way even with a variety of aftermarket modifications accomplished.

2. It has fewer parking problems than conventional vehicles. But not in all circumstances.

it happens. You open your car door and you ding the one next to you. If the scratch is minimal, you move on. If you chip the paint and leave behind a dent certain to invite rust, you do your civic duty and leave a note with your insurance information on the windshield of the impacted car, right? Not a chance.

Tesla Motors certainly isn’t interested in being part of a problem, rather they’re interested in solutions. That’s why the falcon-wing doors have been carefully engineered to operate in the tightest places to ensure that you don’t pull off beltline trim or break the door windows of the vehicles next to you when activated. Tesla demonstrated the Model X’s special doors at the Big Reveal with an SUV parked on one side and a minivan on the other side. The doors pulled straight up and only sprouted their “wings” when they were safely above each vehicle’s contact points (see video posted to Popular Mechanics).

Oh, by the way, if you’re concerned that you’ll whack the roof of your garage when opening the doors, don’t worry — the doors are embedded with sensors to detect obstructions. One more thought: the front doors still open the traditional way — so much for parking in tight spaces unless you plan to slip out through the second row.

3. Part sharing for the Model X and Model S ranges from 30 to 60 percent.

Some people are under the impression that the Model X is entirely new from the ground up. But like so many other utility vehicles, this one shares many of its parts with a sedan variant, in this case the Model S.

Indeed, the Model X is derived from the same platform underpinning the Model S, but there are important differences that go beyond the falcon-wing doors. When you include the windshield, the true third row seat and a host of features that help support the added weight and the maneuverability requirements of any crossover, those differences emerge.

What isn’t known is the price percentage of the shared parts, with claims ranging anywhere from 30 to 60 percent. Parts sharing is more common than what some people think — it saves money and ensures engineering uniformity across model lines.

4. A $25,000 tax credit per vehicle is possible. More help for the rich.

Mostly everyone knows about the $7,500 federal electric vehicle tax credit for eligible taxpayers. It rolled out in 2011 as consumers were taking delivery of the first Chevrolet Volts and Nissan Leafs. Eligible Tesla Model S owners have also taken advantage of the tax credit, to the chagrin of some who believe it helps the 1 percent.

If the $7,500 tax credit bothers you, than a review of Section 1709 of the federal tax code will have you steaming. Under that code, buyers of “sport utility and certain other vehicles” with a gross vehicle weight of at least 6,000 pounds and no more than 14,000 pounds, are eligible for a significant credit. The gross vehicle weight takes a model’s curb weight (5,441 pounds for the Model X) and adds in its payload. We don’t know the payload rating for the Model X yet, but figure it is at least 1,200 pounds to carry passengers. At over 6,600 pounds it falls within the Section 1709 requirements.

Now for the interesting news: business owners who purchase the Tesla Model X will be eligible to claim a $25,000 credit for each vehicle. Although $25,000 taken off of $132,000 for a launch vehicle isn’t as significant percentagewise, buyers of the base $80,000 vehicle will end up paying $55,000 for a high-end SUV. This provision has been in place since 2009, benefitting buyers of certain models such as the Hummer H3.

Hyping the Tesla Model X

The Tesla Model X will likely sell itself, but that doesn’t mean the various vainglorious announcements and pronouncements made by Mr. Musk himself won’t be revered by Tesla faithful. In fact, that is something you can count on in addition to other surprises we’re certain to uncover.

See Also — Tesla Model X Unveiled and Explored

Will NextEV Rival Tesla Motors?

September 3, 2015 by admin 1 Comment

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.

Photo copyright NextEV.

Apple’s Project Titan Autonomous Car

August 19, 2015 by admin 1 Comment

From the rumor files.

Computer and consumer electronics authority Apple Inc. has its eyes intently focused on the automotive industry. And not just through its Apple CarPlay initiative, what works with the telematics systems found in select new cars.

Automobile by Apple: iCar?

No, Apple wants to manufacture the car itself and those rumors are hardly new. Indeed, earlier this year the scuttlebutt had Apple purchasing Tesla Motors, a report that has since been dismissed. At the same time Tesla’s CEO Elon Musk has said that he welcomes the competition, believing that Apple’s entry would provide a “broader consumer acceptance of electric vehicles.”

Why would Apple manifest interest in building cars, especially since it would enter an industry where it has no experience? There are a few reasons for this, including two that should be examined.

First, Google is jumping in. Google and Apple are arch rivals and are currently battling each other to gain access to influence in-cabin telematics systems. Just as Apple’s CarPlay is rolling out throughout the auto industry, Google’s Android Auto is doing likewise. There’s a lot be gained by banding together with car manufacturers. And, by the way, Google is already working on its own autonomous vehicle. Apple wants in and they are not about to allow Google to win the day without putting up a valiant effort.

Second, market convergence is here. Cars are computers and computers are in cars. The marriage of cars and computers has been underway for two decades now as in-car computers essentially control your vehicle. Car manufacturers need technology to help them build autonomous vehicles, something Apple, Google and others are flaunting their expertise. If you want vehicles to talk with each other, then a system has to be in place that permits this. Once driverless vehicles are approved for everyday use, the market convergence will be complete. Complete, but still in its infancy.

Let’s Call it Project Titan

Project Titan will go far beyond Apple CarPlay.

Apple’s new car initiative has a name, dubbed Project Titan. AppleInsider reported on the project this past March, uncovering a secret facility just minutes away from the company’s Cupertino, California, headquarters. That news followed earlier reports that Apple was luring engineers from Tesla Motors and other manufacturers to launch the project. Furthermore, a Sunnyvale location was identified and a sprawling “repair garage” is just one component in that complex.

Project Titan is an appropriate name, but it should not be confused with the Nissan pickup truck bearing the Titan name. But just as Titan in Greek mythology represented one of a family of giants, the Apple car is an enormous initiative much in the same way that the first Mac and iPhones also were. Steve Jobs may have died, but the desire to innovate lives on in Apple Inc.

California Track Time

Project Titan, however, appears much larger than the Sunnyvale location. Just this week, The Guardian (UK) newspaper claimed that it obtained correspondence confirming Apple’s agendum. The periodical says that Apple’s engineers recently met with officials from GoMentum Station, what composes a 2,100-acre former naval weapons base near San Francisco.

That garrison may be leased by Apple and used as the proving ground for an autonomous vehicle. It would be the ideal place too as it is composed of some 20 miles of urban streets and highways, an ideal arrangement for testing driverless cars. The Guardian noted that both Honda and Mercedes-Benz have tested their own self-driving vehicles, a secured facility surrounded by barbed wire and patrolled by security teams.

Automotive Manufacturers and Driverless Technology

While Project Titan may be what Apple has in mind, it still might want to consider what other manufacturers are doing. The Volkswagen Group, Tesla, BMW, Mercedes-Benz and a handful of undisclosed manufacturers are heavily invested in autonomous technology and could assist Apple in its endeavor.

Then again, Apple is used to hatching its products in house and delivering them to customers with overwhelming acclaim. That’s a tall order for Project Titan, but it appears that Apple isn’t shrinking from this titanic enterprise.

Photo copyright Apple Inc.

November 2014: Boom Times for Auto Sales Continue

December 3, 2014 by admin Leave a Comment

November 2014 auto sales increase by 5 percent.

The good times are continuing for the US auto industry, now nearing the end of its fifth year of recovery from 2009’s depressively low sales numbers. Most automakers claimed healthy increases for November 2014, led by the Chrysler Group’s 20 percent increase over a year earlier. Sales for Toyota, Honda and GM also increased while Nissan and Ford registered slight declines for the month.

2014 Jeep Grand Cherokee Summit — Jeep sales continue to pace the Chrysler Group.

GM, Ford and Chrysler

GM continues to lead the market, enjoying a 6 percent sales increase for November. Buick and GMC paced sales with Chevrolet sales increasing a modest 3 percent. However, Cadillac sales continue to pull back, falling 19 percent for the month. GM credited Black Friday sales with boosting is numbers. Said Kurt McNeil, U.S. vice president of Sales Operations, “The buzz around Black Friday helped drive strong showroom traffic but there was a lot more at work in the market.” McNeil noted that more people have jobs, household wealth is on the rebound and gas prices are falling.

Ford sales fell for the third consecutive month as the automaker retools to produce its all-new 2015 Ford F-150 pickup truck. Ford also said that it is ramping up production for two other models — Mustang and Transit — and expects brand sales to stay depressed for the short term. Even so, Ford managed to sell more than 8,700 Mustangs for the month, including its all-new version. Lincoln sales provided a bright spot for the month, rising by 21 percent as interest in the all-new MKC and the latest generation Navigator paced the brand.

Chrysler sales continue to outpace the industry, increasing an even 20 percent for the month. Sales of Chrysler, Dodge, Ram, Jeep and Fiat brand vehicles rose for the month with the Chrysler 200 sedan enjoying a 155 percent increase over the same month in 2013. Notably, 11 Chrysler Group models set records during the month with the Chrysler 200 recording its best sales month ever.

Toyota 4Runner

Toyota sales climbed by 6 percent in November 2014.

Toyota, Honda and Nissan

Toyota reported sales of 183,346 units, reflecting a three percent increase for the month. Camry, Corolla and RAV4 each topped 20,000 units sold with 4Runner sales up by 53 percent for November. Lexus sales increased by 7.3 percent, helping the luxury brand to keep pace with segment leaders. “Lexus set an all-time November sales record thanks in part to the momentum surrounding the arrival of the newest edition to the lineup, the RC coupes,” said Steve Hearne, vice president for sales and dealer development. “As a result, Lexus outpaced the luxury market with strong growth for both passenger cars and utility vehicles.”

Honda sales increased by 4.6 percent on strong sales of its CR-V crossover, midsize Accord and compact Civic lines. Honda sold a record 32,378 CR-Vs, the best-selling compact crossover utility vehicle in America. Honda’s truck sales, including utility vehicles, came in at 51,735 units, a November record. Sales for Acura, Honda’s premium brand, rose by 2 percent based on strong demand for its TLX and ILX sedans.

Nissan’s bid to catch Honda continues to stall as sales fell by 3.1 percent for the month. Nissan division sales fell by 1.7 percent while Infiniti sales sank by 13.3 percent. However, year-to-date sales are up 11.5 percent and the Nissan brand has already set its all-time US sales record. One particularly bright spot for Nissan was its Rogue crossover as its sales topped 15,000 units, increasing by nearly 44 percent for the month.

Kia K900

Kia sales continue to grow even as cousin Hyundai slips.
Pictured,
the flagship K900 sedan.

Subaru, Hyundai and Kia

With one month remaining in the year, Subaru has already broken its all-time sales record. November sales climbed by 24 percent and are on pace to top 500,000 units before the month is out. Like Chrysler with its 56 consecutive months of month-over-month sales increases, Subaru’s streak is now at 36 months. Two models, Forester and Outback, are leading the charge for Subaru.

Hyundai and Kia continue to go in opposite directions in terms of US auto sales. Hyundai sales fell by 4.2 percent for the month, while Kia sales rose by 6.6 percent. Kia continues to enjoy strong demand for its Optima sedan, its best selling model. Soul sales slipped in November, while Sorento sales declined slightly.

Hyundai sales fell for the month, but are still ahead of last year’s record-setting pace by 3,400 units. Elantra sales topped the 200,000 units sold threshold for the year with the Sonata expected to follow within the next day. Sales of the all-new Genesis sedan were up 57 percent for the month.

Audi Q3

Audi continues to win a larger piece of the luxury segment pie.

Volkswagen and the Rest

Volkswagen’s struggles may not be over, but it is seeing increased sales for the second month in a row. November sales rose by 3.2 percent, paced by Jetta sales up by almost 32 percent. The strongest gain was recorded by the Golf as sales rose by nearly 86 percent for the month. “We are thrilled with the accolades the Golf family of vehicles has received, including the 2015 Motor Trend Car of the Year. These awards applaud the line up’s versatility, quality and value,” said Mark McNabb, chief operating officer, Volkswagen of America. “Partnered with the refreshed Jetta and upcoming redesigned Touareg, the potential for increased showroom traffic looks promising.”

Among the German luxury makes, Audi continues to shine the brightest. Audi sales rose by 22 percent, BMW sales fell by 2.3 percent and Mercedes-Benz sales increased by 2 percent. With a 20,000 unit lead going into December, Mercedes has sewn up first place for luxury brands this year.

Other manufacturers and brands reporting sales included Mitsubishi, up 7.6 percent; Mazda, up 2.4 percent; Tesla Motors, up 6.5 percent; Volvo, down 14.4 percent; Jaguar Land Rover, down 19 percent and Porsche, up 18.5 percent.

November 2014 Auto Sales

Automotive analysts have pegged November’s SAAR at 17.2 million units based on 1.3 million+ models sold for the month. The five percent increase comes as manufacturers ramp up year-end specials. Keep an eye on special deals that can shave even more money off of sticker prices.

Note: November 2014 photos copyright Auto Trends Magazine. Sales information provided by the manufacturers and Autodata Corporation (Motor Intelligence).

Tesla Motors Opens First North Carolina Supercharger Station

October 22, 2013 by admin 1 Comment

Electric vehicle maker extends its supercharger network.

Burlington, NC, may not be an instantly recognizable location for people outside of the Tarheel State, but it is a city that is strategically located halfway between Winston-Salem and Raleigh. It is also near where interstates 40 and 85 intersect, making it the ideal location for Tesla Motors to set up its very first supercharging station in the state. Tesla has done just that, choosing a parking lot at the Alamance Crossing mall where vehicle owners can quickly recharge their vehicles.

Ribbon cutting time at Tesla’s first supercharger station in NC.

Extending the Range

The North Carolina station is located near the Carousel Luxury Cinemas complex. It features eight charging stalls and is open 24 hours a day. Tesla owners won’t find signage pointing them to the station, instead they’ll find it by means of an app.

When hooked up to the supercharging stall, a Tesla Model S can take in up to 120 kilowatts of power to obtain half a charge in just 20 minutes. And with it strategically located near shops and restaurants, owners can get a bite to eat and return ready to resume their trip.

Eight charging stalls stand as sentinels ready to serve.

Supercharger Station Assistance

Without access to a supercharger, Tesla Model S owners would be restricted to a maximum 265-mile driving range depending on the model. That’s much longer than other electric vehicles, but it does limit long distance travel.

To eliminate range anxiety, Tesla is installing superchargers along three major “highways” across North America. One will connect Vancouver to San Diego and a second one will connect Boston to Miami. The third one is its most ambitious project: providing supercharging stations to make it possible to drive from Los Angeles to New York City on electricity only.

NC Tesla Model S owners try out the supercharging stalls.

Second North Carolina Station

On Tues., Auto Trends spoke with Patrick Jones, communications manager for Tesla Motors about the company’s vision. Jones said that the supercharging network will be completed by the end of this year with gaps filled in next year. Those gaps include connection points between other major cities. For example, from Chicago to Houston. In the meantime, a second North Carolina station is in progress and will open near Rocky Mount later this year.

Establishing a supercharging network requires a collaborative effort, something Tesla received with the assistance of CBL Properties, owner of the mall, electric supplier Duke Energy, and other partners. Said Jones, “We selected this location because there is a lot of shopping around. Customers can come, get out and go to Dillards, grab pizza or a burger while they plug in and charge and then get back on the road.” Jones noted that Tesla owners would be able to make it Charlotte, the largest city in the Carolinas, by recharging at its Burlington station.

A number of dignitaries including Burlington mayor Ronnie K. Wall, and city council member Celo Faucette were on hand for the ribbon cutting ceremony. Duke Energy, the state of North Carolina, and Alamance County also sent representatives. Tesla owners, electric vehicle enthusiasts and members of the media populated the assembly of no more than 100 people.

Local stores are just steps away from the supercharging station.

Supercharger Station Partnership

CBL & Associates Properties Inc. is the owner of Alamance Crossing. This past June, CBL launched a partnership with Tesla Motors to install superchargers at five of its properties. Besides North Carolina, Tesla Supercharging stations will be built at CB Malls in Rockford, Ill., El Centro, Calif., Fort Meyers, Fla., and Port Orange, Fla.

Tesla Model S owners take advantage of free charge time.

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