Headlines & New Cars for the week of January 22nd, 2018

Arbeit Macht Schwer

In case you thought the US was the only country with labor relations issue, here comes Germany to reassure us that we're not so different. Factory workers at Audi and Porsche plants have gone on strike to support demands of a six percent raise and the right to ask for a reduction in hours from 35 to just 28 so they can do things like care for children or the elderly for a couple of years, then return to work full time. In response to the union’s demands, employers have apparently offered a two percent raise, a one-time only “bonus” of two hundred Euro, and flat out refused to consider the reduced hours point. As they say, misery loves company, so I’m happy to see the rich American tradition of overwork and underpay is starting to catch on across the world. It makes me feel slightly less guilty for not working in France or Norway.

Geld Macht Spaß

Last year we covered the launch of the Porsche Passport Pilot Program, or as nobody calls it, Quadruple P. Well, they have some early numbers to report based on the program in Atlanta and signs are good for the brand, with 78% of participants having never owned a Porsche before. The company envisions this as just one way buyers can experience Porsche ownership, and they anticipate about 30% of buyers will purchase vehicles online in the next couple of years. Mercedes-Benz is thinking similarly, estimating that 25% of their new and used sales will come from the internet by 2025. But back to Porsche Passport - they also say it’s reaching a younger demographic, though they don’t specify how young. Given the fact that most of the participants are opting for the higher-cost, $3,000 per month service, I can’t believe these people are that young. To be able to basically have $36,000 to spend on a car every single year in addition to housing costs, food and other things, it seems like you’d have to be doing pretty damn well for yourself, which generally takes a few years. Or, in some of our cases, not at all. 

We Really Did Forget Dieselgate

After a disastrous 2015 and '16 where they were found to be using defeat devices to circumvent global emissions laws in their diesel cars, Volkswagen spent most of 2017 trying their absolute hardest to help buyers forget about dieselgate. A lot of this included generous discounts, goodwill campaigns and reinvestment in popular vehicles, not to mention the rebirth of the Microbus as the I.D. Buzz. Turns out, all that work paid off and buyers around the world pretty much did forget and stepped right back in line to snatch up new Volkswagens. What makes it more incredible is that, while the industry as a whole was down last year from 2016, Volkswagen recorded record sales, increasing 4.2% verses the year prior. And while the rest of the industry braces for more stagnating sales, VW sales chief Juergen Stackmann is optimistic, expecting sales to continue to rise in 2018. Based on the popularity of the gigantic Atlas, the compact Tiguan twins and the attractive Arteon, as well as the deal I was able to strike on a leftover 2017, it looks like their aggressive measures may be pretty effective!

Infiniti’s Shocking Moves

Meanwhile in Japan, Infiniti also had a great year, increasing sales eleven percent over 2016, but they’re still very much playing catch up to the German, English and Swedish luxury brands. Their plans to overtake their competition hinges primarily on electrification, as Nissan CEO Hiroto Saikawa explained this week. All new Infinitis launched after 2021 will be all-electric or will be range-extended hybrids, but not in the conventional sense. The company’s technology called ePower uses a gasoline motor to recharge the battery in its range extended hybrids, but that gas motor doesn’t drive the wheels at all. And there’s no plug-in feature. So the propulsion is entirely electric and the power generation entirely gas. It’s a weird setup, and especially considering Infiniti’s recently-announced variable compression engine, a strange change of approach to try to lure buyers. Then again, it could be a great solution for buyers without a garage or access to plug-in locations. 

Acura Wants to be Exciting Again

In addition to announcing the new 2019 RDX, Acura dropped a bombshell on the Detroit Auto Show, announcing the return of Type-S and A-Spec brands. For the uninitiated, Type-S is a high trim level applied to Acura models that are especially fast and good handling, and it was last used ten years ago on the TL sedan, but was famously applied to the RSX and Integra coupes, which were a ton of fun to drive. A-Spec is another trim level more focused on comfort, style and refinement than outright speed, so it’s somewhat less exciting, but no less important to buyers. The bombshell, however, was kind of a dud because they didn’t announce which models would get which trim levels or if they’d be bringing back an actually affordable fun car. It’s like Honda has this caged lunatic who wants fun cars and they let it out just a little bit at a time because if they let it off the leash completely, we’d end up with cars enthusiasts like and that’s just too much for them.

France Wants to be Less Exciting

People keep dying on French roads, with increases over the past three years after steady decreases going back as far as 1972. In response, France is lowering the speed limit on most of their highways by ten kilometers per hour, so the fastest you will be able to legally drive in France is just 56 miles per hour, rendering the fairly standard 0-60 calculations pretty useless. To their credit, the French don’t attribute all the deaths just to speed alone and have tightened regulations on cell phone use and drunk driving. This comes as road deaths are up also in Britain and the United States, illustrating a disturbing trend that I think must be attributed to cell phone usage. When I was hit a couple of weeks ago, I was lucky to come away uninjured and the other driver offered no excuse for why he ran a red light that had been red for at least seven seconds. Based on the Uber and Lyft stickers in his window though, I guessed that he was trying to find a fare. I wouldn’t go so far as to say those ride sharing companies are complicit in the wreck that has cost me days worth of time fighting with insurance companies and trying to find a new car, but the sooner we can integrate smart features into a car so drivers need look at their phones less, the better. 

BMW to Charge for Not Their Service

BMW, though, has a different idea of how to integrate phones into cars and that involves squeezing its drivers for every penny they can get, like little Bavarian weasels, hiding away all their nuts. But the truth is, the nuts aren’t even theirs! Or maybe the tree isn’t. This is a bad metaphor. BMW wants to charge a subscription fee for Apple’s CarPlay software, which they currently have as a $300 option when you buy a new car. By charging $80 per year after the first year, which is free, they argue that you pay less if you only keep the car a few years, which I guess most BMW owners do because they want to be seen driving a new BMW. The issue here is that more than 400 models of car come with Android Auto and almost as many come with Apple’s CarPlay, but it’s included in the price and not an option you have to add in later. Hell, you can buy a Toyota Corolla or VW Jetta and get these features for free, but you don’t with BMW. It’s like how fancy hotels make you pay for WiFi when you get it for free at Best Western. Why? Because the fancy hotels know you have the money to pay for it. Okay, that was a better metaphor.

Taking Crashes to New Heights

In Santa Ana, California this week, a driver managed to launch his Nissan Altima into the second story of a dental office, using a raised center media as a sweet ramp for the epic Dukes of Hazzard-style flying act. The driver, who was apparently high as a kite, was able to exit the car and hang by the door until police came and literally caught him. He and his two passengers were injured and taken to the hospital where they had some serious coming down to do. 

Photo by Southern Counties News

Tackling Terrible Truckers

From bad drivers to bad truckers, we’re headed back to England, where the Driver and Vehicle Standards Agency, or DVSA, announced the findings of a 4,000 vehicle roadside test. They found that one in 13 trucks on British roads were fitted with an emissions cheat device that give false emissions readings, allowing the truck better performance while drastically increasing pollution. If this sounds familiar, it should because it seems like there’s this type of story every week, it just usually involves auto manufacturers getting caught doing it, not truck drivers who are looking to skirt the law. A representative of the DVSA, Gareth Llewellyn said, “we’re committed to taking dangerous lorries off Britain’s roads. We won’t hesitate to take action against these drivers, operators and vehicles.” Unfortunately for Gareth, when trucks were found with defeat devices, drivers were given ten days to fix the problem or pay a £300 fine, which sounds an awful lot like they’re hesitating to take action to me.

Have a Seat

Back here in America, our love for three row SUVs has apparently created quite a criminal enterprise, because there have been a rash of robberies - of just the third row seats from SUVs. Apparently, on most General Motors SUVs, like the Chevy Suburban, Tahoe and GMC and Cadillac Siblings, if you’re able to pop open the rear glass on the lift gate, the alarm on the car doesn’t go off. Once inside, the third row can simply be unhooked and then passed out the open hatch. And who is buying all these third rows to make stealing them such a popular endeavor? If you guessed “people who have had their third rows stolen,” you’d be right. It’s tempting to victim blame here and say “just park in a garage or back in so the back glass isn’t so accessible,” but what’s the point of a car alarm if it’s not going to alarm you when someone is stealing something from it? Come on, GM, this is on you.

AI Coming Along Swimmingly

While Google and Amazon work to integrate their digital assistants into more and more new cars, Nissan is going a sort of different direction with their own artificial intelligence. Instead of a female voice, Nissan’s Xmotion Concept features a koi fish as a virtual assistant that swims across the myriad interior screens to provide drivers assistance with, well, driving, as well as entertainment and navigation. It’ll also connect with the driver’s smartphone to share information between it and the car. And in case you’re thinking this is some sort of anthropomorphized Admiral Ackbar-looking fish, no, it’s just a normal koi fish, and I think it’s neat and more companies should think outside the pond when coming up with virtual assistants.

SUV Free and Happy to Be

While Ferrari and Lamborghini rush to catch up with Bentley and Porsche on the super-expensive SUV craze, McLaren is pretty content just where they are, thank you very much. The company’s chief designer, Dan Parry-WIlliams, told Top Gear magazine this week that “I’m not the first person to point out that an SUV is neither particularly sporty or utilitarian. It’s not ‘everything for a reason’ unless the reason is to clutter up the streets.” He’s referring there to McLaren’s design motto, “everything for a reason,” and it’s refreshing to see a company stick to its credo. Meanwhile, at fellow British sports car company Lotus, whose mantra, handed down from founder Colin Chapman was “Simplify and add lightness,” they’ll soon be launching their own SUV that will neither be simple nor light, though that may be said of their buyers. 

The (Frozen) Vaporware Car

Photo by Simon Laprise

In Montreal this week, someone had a good time at the expense of some local police, who attempted to ticket a snow-covered vintage Toyota Celica Supra that was parked in a snow removal lane, blocking in other parked cars. Upon lifting the very real windshield wiper to place the ticket, the police officer discovered that the wiper arm wasn’t attached to anything because the entire car was simply a pile of snow molded into the shape of a Supra. The whole thing was the brainchild of a French Canadian artist named Simon Laprise, who found the windshield wiper on the street and placed it on the car for maximum confusion. As for the ticket issued? The citation read “You made our night, hahahahaha” or whatever the French word for laughter is.

New Cars

Jeep Grand Commander

Detroit might make a great place to launch a new Jeep, but that’s just what Jeep hasn't done this week, when images of a new three-row SUV leaked to the media. It seems every company is scrambling to get an SUV with three rows out there for all the families who insist that contorting yourself to wedge in between a door sill and the second row only to sit cross-legged on a tiny, barely-padded foldable bench seat is more dignified than just swallowing your pride and buying the mini-van you should be getting. And with regards to Jeep, they don’t currently have a third-row-capable SUV in their stable and haven’t since the mercy killing of the Commander in 2010. If you forgot the Jeep Commander existed, you’re not alone and you’re totally forgiven because it was horrible and ugly. But now we have had a look at the new Grand Commander, a seven seat SUV that is apparently a China-only vehicle. At least according to what we know about it right now. The new model borrows heavily from Jeep’s other products for styling, which is now a good thing and it looks pretty decent, so it’d be hard to believe Fiat Chrysler wouldn’t wise up and bring it over stateside at some point. Plus, starting at around $38,000, it’d fit right in with most of its contemporary competitors. Until we know if it’s coming here or not, I guess you’ll just have to buy the Honda Odyssey you should be getting anyway.

GM’s Autonomous Bolt

One of the biggest stories to come out of Detroit this week was General Motors’ launch of the all-autonomous Chevy Bolt. This is a big deal because GM is calling it the first pre-production car to be shown without a steering wheel or pedals, which I guess is accurate since we’ve definitely seen concepts without them before. While it’s ostensibly a major step forward in terms of the future of autonomous vehicles, indicating GM’s confidence that they have a car ready to go completely without human controls, it really doesn’t feel all that special. Just looking at the photos of the interior, which doesn’t have to cater to a driver anymore, it really just looks like they took the passenger’s side, went into Photoshop, copied, pasted and flipped it so the former driver’s side looks the same. That’s it. I mean, in a fully driverless car, you don’t even need a dashboard. Your displays can be anywhere, or everywhere! The seats could swivel or not even face forward, and yet here we are, with a Chevy Bolt where they just Control X’d the steering column and pedals. Congratulations GM on making the future of motoring so unappealing.
 
But thank god, Chevy wasn’t the only company exhibiting at this year’s North American International Auto Show. In fact, there were a ton of new vehicles. If you want to learn more, check out to my Auto Show Rap-Up from last week's podcast. 

Authored by
Devlin Riggs

Headlines & New Cars for the Week of January 8, 2018

Sales Slump to Continue

After all the numbers came in for 2017, overall vehicle sales were down 1.8% over 2016, which marks the first decline in seven years and, unfortunately for car makers, there’s no real end in sight. That is, unless you’re a super car manufacturer. Aston Martin and McLaren both recorded their biggest ever sales years in 2017 because the rich are getting so incredibly stinking rich!

Anyway. During the recession, people held on to their cars longer because they couldn’t afford to replace them. This meant stiffer competition among automakers for the sales that were occurring, so they worked hard to make their cars more appealing, more reliable and safer. When the economy finally bounced back, people spent the next seven years getting rid of their old vehicles and upgrading to newer, better cars.The reports bear this out – cars these days are safer, more reliable and more satisfying than ever before, and so people are keeping them longer, leading to a sales decline.

Sure, you’ll still have incidents where people blow through red lights and total cars, thereby generating a certain amount of reluctant sales, but there are already 1.26 vehicles on the road for every one licensed driver, meaning we have a shit ton of unlicensed drivers out there, or people just have plenty of cars.

And that’s what the industry experts are thinking – we’ve reached peak car, where we’ll back off to a stable replacement level of sales each year. Plus, as interest rates rise, people aren’t going to want to take out loans for new cars either. So how will automakers cope with a shrinking pie from which to get slices? Will they keep innovating as they did during the recession to attract a larger share, or will they collectively start making their products less reliable so they go bad at a prescribed point, forcing owners to upgrade? This is what we’d call the iPhone sales tactic.

Leasing Surges

On the heels of the sales report, leasing looks like it’s going gangbusters. About 31 percent of all new vehicle sales are leases in the US, but if you look at plug-in hybrids, the number jumps to 55 percent of all sales. And then there’s pure electric vehicles. Eighty percent of all EV sales are leases, which is crazy. Almost all people want to essentially rent these cars for a few years and Bloomberg is reporting that a major cause of this is the overall sense among consumers that electric vehicles are going to get better than they are now, so they don’t want to be locked into obsolete technology. Plus, resale value of EVs is currently very, very poor so purchasing one outright just doesn’t really make any sense, apart from for those 20 percent of people who bought them outright. Enjoy your Leaf!

Fuel Costs Jumping

Of course, those EVs may start to look more attractive this year as the 2018 Fuel Price Outlook suggests that gas prices could peak at just less than $3 per gallon. GasBuddy predicts that the national average price will rise 19 cents to around $2.57 per gallon this year, which still is not THAT bad, especially when you look at the rest of the world. But combine that with the drop in fuel efficiency we saw among new car purchases last year and GasBuddy predicts the average household will spend $1,898 on fuel this year. That’s $133 more than last year, which is the cost of at least two nice taco dinners, and I cast shame upon the evil oil spectators behind this rise because nothing should stand between us and nice taco dinners!

California Banning ICEs

Meanwhile in California, the land of the future, a bill has been introduced to the state legislature that would ban the sale of new cars and trucks powered by gasoline or diesel fuels by the year 2040. If you’ve been tuning into the show for a while, you’ll know that 2040 is also a deadline set by Paris, London and a few other cities or countries, with some even having more aggressive targets for pollution reduction. They estimate that the measure, if it’s adopted, would cut greenhouse gas emissions by 80 percent from 1990 levels in just ten years. We’ll have to see how they end up voting, but I bet there are going to be some very busy lobbyists in Sacramento this week! 

Mazda’s Creepin’ Tech

Mazda this week filed a patent for some technology that’s both innovative and incredibly creepy. It’s apparently all in an effort to thwart distracted or drowsy driving. Basically, there is a camera or series of cameras set up inside the car, pointed at the driver and the car’s computer uses the driver’s eyes and expression to determine if the driver is paying attention and engaged with the drive they’re going on. If it determines that the driver is busy checking texts or Facebook or dozing off, the car will apparently respond by doing anything from simple sounds and visual prompts to changing the navigation system to route the driver to a more fun-looking road to drive. If the driver looks like he or she is having fun and is entertained by the route, the computer will store that route for later reference. Basically, Mazda is going to find all the cool roads and fill them with CX-9s because drivers can’t put their stupid phones down anymore.  

"Eyes on the road, buddy!" - Mazda

Nissan Gets in Your Head

And speaking of creepy, Nissan is taking it to the next level with their new Brain to Vehicle (B2V) system, which they will be showing off this coming week at the Consumer Electronics Show. Drivers are fitted with a skull cap that monitors brain wave activity and transmits signals to steering, acceleration and braking systems that can respond before the driver even moves his or her hands or feet. The driver still actually makes the car do things, but the car just anticipates what’s going to happen and can start things milliseconds sooner. Apparently this is meant to enhance the driving pleasure when it seems to me it’s just cheaper to make cars faster and more responsive than to dump time and research into brain wave monitoring. But hey, they’re making money like crazy selling Nissan Rogues to people so they can do what they want I guess. 

Tesla Under-performs...Again

Meanwhile a Tesla earnings call this week managed to once again unveil the woeful under-performance of the company in meeting the goals its founder sets for it. Rather than churning out a few thousand Model 3s per week as predicted earlier this year, Tesla’s highest number yet was a little less than 800 and, let’s be honest, making almost 100 cars a day is still a super achievement and they’re ramping up effectively. The problem comes when the founder is all bluster about getting to 5,000 cars per week by the end of Q1 2018 which, by the way, has been pushed back to the end of the second quarter. Tesla’s stock took a hit after the announcement, which was, for once, not accompanied by some other shiny thing to distract investors from the problems going on. Tesla has a big year coming up with the launch of both their semi truck and the Model Y, but it’s critical they get their shit figured out quick, or buyers are going to start figuring out that hey, that Chevy Bolt is a pretty nice car and I can go buy one right now.

Burn Rover, Burn

On Sunday night last week, a parking garage in Liverpool, England, resembled the gates of hell as a raging inferno engulfed 1,400 vehicles. Fortunately, no one was injured and, surprisingly, the fire wasn’t started by an Italian super car. It was rather friendly fire, coming from a Land Rover, of course vehicles not known for their wiring or electronics excellence. The fire really is something incredible to see, as you can tell from the video above. The fuel in the cars just fed the fire until it was completely unconquerable by the local fire brigade, meaning they couldn’t stop it spreading to other cars. Sort of like an automotive herpes that, instead of itching, just creates a huge insurance hassle for thousands of people.

Squirrels Drive Local Man Nutty

A British Volkswagen Golf driver learned the hard way how squirrels are  just rats with fluffy tails last month. Apparently he parked his car outside his girlfriend’s father’s home near London and then left with the girlfriend for a month to tour southeast Asia. During that time, several squirrels decided that hey, Volkswagen does make a pretty comfy car, and called the place home, storing acorns in every conceivable place throughout the vehicle they could access. The glove box, the engine bay, even the transmission was packed and the owner found it tough to shift when he returned home. The clean-up and disposal of hundreds of perfectly good acorns that would feed families of the little bastards throughout the winter cost the driver £230. Which is not a small sum, especially coming back from vacation.

Hot Dog, Cool Crime

In other food-related automotive antics, a driver in Texas got off with a warning this week when he was pulled over for a minor traffic violation. Apparently, prior to departing, he placed a hot dog on the rear bumper of his Chevy Silverado and taped a piece of paper with “Free hot dog” written on it above (hard to tell from the above photo, but easy to see how creepy it is) . He then proceeded to drive from Waco, Texas to Brownwood and back, a journey of more than 120 miles, before getting stopped. The hot dog and sign were still there. Now if you’re me, you think this is like the adult equivalent of free candy written on the side of a seedy van, but if you’re a Brown County sheriff's department officer, you just think he’s a funny dude and let him be on his way. Only a matter of time before witness reports roll in about bodies being found in the back of a white pickup with hot dog residue on the bumper.

Pampered Oregonians Pumping

You may or may not be aware, but New Jersey and Oregon both require full service gas stations, or at least they did. Oregon has started allowing rural stations to permit self serve. You know, the same kind of gas we have literally everywhere else in the country? Well apparently people are freaking out about it, don’t know how to pump their own gas and are afraid that they will either burn the whole place down or smell like gasoline the rest of the day. I get that if you grew up not doing it, you may not know how to pump gas, but I fail to believe that people have never watched an attendant do it for them, and I have absolutely zero sympathy for these pampered brats kicking and screaming to get the good old times back. This really seems like a Portlandia sketch in real life. But apparently that really just is the state of Oregon.

Turkmenistan Bad Luck Ban

They aren’t the only place suffering though. Do you love black cars? Do you live in Ashgabat, Turkmenistan? Well tough luck. Your car has just been banned because the president of the oppressive country has decided they are bad luck and they must be impounded or repainted at the owner’s expense. And I do mean expense because it’s a very poor country and the people there can absolutely not afford to repaint their cars just because their president is a nut job. Sorry Turkmen!

Banned in Turkmenistan.

New Cars

Is there a future for the Fusion?

First up in new car news is actually the cancellation of a new car, or at least new design. In a letter to suppliers this week, Ford announced that they are canceling the planned redesign of the Ford Fusion which was scheduled for a 2020 launch. While this doesn’t mean that the Fusion itself has been discontinued and doesn’t rule out a major change coming later, this does look pretty bad, given the trouble brands have had with selling mid-sized sedans this past year. Buyers just want SUVs, trucks and crossovers these days and while Fusion sales are going okay, particularly to fleets, Ford apparently doesn’t see the value in spending time and money in refreshing a car that has only been around four years and remains one of the best looking cars in its class. That or this is the evidence we need to show that Ford is all a part of a massive marijuana smuggling scheme from where the Fusions roll off the line in Mexico. Remember those stories? Twice Fusions have been found with the spare tire well packed to the brim with weed awaiting receipt by a distributor in the US only to be discovered by a so-called innocent car buyer. Sure, Ford. I’m on to you.

New Audis with New Looks

While Ford foregoes redesigns of its cars, Audi has decided that their utter lack of creativity for their own cars needs to be changed. If you’re like me, you’ve probably sat in traffic, admiring an Audi and thought “that’s a really nice looking S6. Or, uh, A8. No, A4? RS4? Shit.” That’s apparently pretty common. According to an interview with Autocar, CEO Rupert Stadler says the similarity between models was used to make Audis more recognizable to emerging markets, which they say has worked swimmingly and now they’re free to spend money and be creative again. Marc Lichte, Audi’s Chief Designer, was quoted as saying something along the lines of “Oh, thank god, Jesus in heaven I’m bored to death over here and only have rulers on this drafting table!” New designs should start rolling out in March or April of this year.

This originally aired in The AllWaysDrive Podcast on January 4, 2018. Subscribe now and never miss the latest new car news!

Authored by
Devlin Riggs