Automotive Industry
News covering the Automotive Industry at large.
503 articles in this category
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Fiat Chrysler Automobiles is none too pleased with the Indian automaker Mahindra & Mahindra Ltd as they're planning to sell an off-road vehicle that looks very much like the original Willys Jeep. Bloomberg obtained a complaint filed by FCA to the U.S. International Trade Commission on August 1st. The document claims that Mahindra's Roxor infringes key characteristics of Jeep's signature design - namely the “boxy body shape with flat-appearing vertical sides and rear body ending at about
A fair amount of their complaint deals with the design
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As expected, the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) have unveiled a proposal that will suspend increases in fuel economy put forth by the Obama administration, and take away California's ability regulate vehicle emissions. The new proposal is called the "Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule." Under the new proposal, the Corporate Average Fuel Economy (CAFE) would be capped at the 2020 level of 37 mpg through
Prepare yourselves, there are some mental gymnastics involved
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The talk about whether any of the major auto shows still matter has been going on for few years as a number of automakers pulling out has been increasing. But what you haven't heard is a major head of automaker questioning them, until now. “Motor shows are dead,” said Herbert Diess, chairman of the Volkswagen Group. “They are a product of the 1960s and they are not as relevant anymore. They’re not delivering what we want and they’re not delivering what car buyers want.” The Detroi
Surprising for an auto executive to say this
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Fuel efficiency guidelines and California's right to set its own vehicle emissions standards are in the crosshairs of the Trump administration again. Bloomberg has learned from sources that the administration will be introducing a proposal later this week that revises key parts of the Obama-era standards. This includes capping federal fuel economy requirements at 2020 level of 35 mpg fleet wide, instead of the 50 mpg requirement by 2025. There is also a provision that would revoke the Clean
Here we go once again
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After months of speculation and rumor, it is now official: The Detroit Auto Show will be moving from January to June in 2020. “Our show is undergoing its most significant transformation in the last three decades. Detroit will continue to be a global stage for some of the world’s most significant and iconic vehicle reveals and host an unparalleled international audience of media and key industry influencers,” said Rod Alberts, Executive Director of the Detroit Auto Show. The Detroit Auto
We don't have to deal with snow anymore?!
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A new audit released by the U.S. Transportation Department’s Office of Inspector General rips the National Highway Traffic Safety Administration (NHTSA) over its handling of the Takata airbag recall. In the report, the Inspector General says NHTSA's recall monitoring process "does not ensure that remedies are reported completely and in a timely manner," nor does it "verify recall completion rates, although it has the authority to do so." Other issues the audit found included the long time i
Doesn't put NHTSA in a positive light
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PSA Group has been hard at work on its plan to return to the U.S. by 2026. They already have a brand chosen that will lead the launch (bur aren't saying if it will be Citroen, DS, Peugeot, or the recently acquired Opel/Vauxhall) and has open their U.S. headquarters in Georgia. The next step is figuring out where they'll begin selling vehicles. Larry Dominique, CEO of PSA Group North America told reporters that he has his eyes on 15 states to launch. Among the states mentioned include,
But what happens if the tariffs go into effect?
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The U.S. Commerce Department is asking automakers to spill their secrets; product planning, financing, supply chains, and other bits that aren't in public filings. Bloomberg reports that the department’s Bureau of Industry and Security sent out a 34-page questionnaire asking for sensitive details to several automakers. Failure to do so could result "in a maximum fine of $10,000, imprisonment of up to one year, or both" as mentioned on the first page of the survey. “The breadth and dep
I've got a secret
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Like many countries, China offers various incentives to spur the sales of electric vehicles. But a report from Bloomberg says the Chinese government is considering reducing various subsidies beginning next year. According to sources, the government is considering cutting the average incentive by more than a third from where they currently stand. Also up for consideration is incentives being eligible on models that can travel at least 200 kilometers (about 125 miles) on a single charge. Why
To spur innovation
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When we last reported on the date change of the Detroit Auto Show, organizers had made the final decision on what month it would be held beginning in 2020 - either October or June. A new report from The Detroit News says June will be month that will be announced at a press conference on July 24th. Sources tell the paper that back in January that the Detroit Auto Dealers Association (DADA), organizers of the show sat down and started discussions as to moving the show. Originally, DADA had Oc
Might have some elements of the Goodwood Festival of Speed
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Back in 2010, Renault-Nissan and Daimler announced a new partnership that would see the two share powertrains and work on various projects. Some of those have come to fruition such as the Infiniti QX30, which is a Mercedes-Benz GLA-Class in different clothing and the platform that underpins the Infiniti QX50. But other projects between the two have been halted. Late last week, the Nikkan Kogyo business daily reported that joint development of luxury compact car project has been suspended. T
Consumer tastes and tariffs are to blame
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The threat of a 20 percent tariff on vehicles exported from the European Union has a number of automakers panicking. But that tariff could be taken off the table if the EU removes their tariff on vehicles exported from the U.S. German paper Handelsblatt learned from sources that a meeting was held between the US ambassador to Germany, Richard Grenell and number of CEOs from German automakers. Grenell presented an offer directly from President Donald Trump - "elimination of all tariffs on au
But they would need to make some concessions
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It is now official, the Detroit Auto Show will not be held in January beginning in 2020. Organizers of the show made the announcement yesterday afternoon and released a teaser video showing what the show may look like in its new date, complete with outdoor test tracks and vehicle displays. The Detroit Auto Dealers Association (DADA) will be holding a press conference on July 24th announcing the new date. As we have reported previously, DADA was considering moving the show to October not onl
The question is which month
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Automakers have been edge for a few months with talk of a trade war and possibly putting up to a 25 percent tariff on imported new vehicles. They only would be pushed further to the edge as President Donald Trump tweeted last week a 20 percent import tariff on all cars assembled in the European Union. Now, automakers are rebuking the President over this. Reuters reports today that two trade groups, representing nearly every major global automotive brands have issued comments saying the pres
This is a terrible idea. -Automakers to Trump
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With President Donald Trump tweeting last Friday threating a 20 percent tariff on all imports of European Union assembled cars, the EU has responded by saying it would raise their tariffs on imports of U.S.-built vehicles. “If they decide to raise their import tariffs, we’ll have no choice, again, but to react,” said EU Commission Vice President Jyrki Katainen. “We don’t want to fight (over trade) in public via Twitter. We should end the escalation.” This comes a month after the T
Tit for Tat on Tariffs
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Tesla and General Motors lead the pack when it comes to the sales of plug-in vehicles. Data from Automotive News says Tesla stands at 193,344 vehicles, followed by GM at 181,062, But there arises a problem; once they cross the 200,000 mark, the phaseout of the $7,500 tax credit begins. Tesla is expected to be first with some predicting it taking place next month (provided they don't run into more production troubles). GM will follow sometime next year. Barring some sort of extension of the
Might become tougher to sell some EVs
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The project of a trade war between the U.S. and China (along with the European Union) has many automakers on edge. Some are beginning to speak out about the possible dangers it may bring. Mercedes-Benz's parent company, Diamler AG announced yesterday that its full-year earnings will be slightly lower than last year. Their reasoning comes down to consumers in China buying fewer SUVs that are imported from the U.S. Most of Mercedes-Benz SUVs are built in Alabama. “Remember, for those fol
One Predicts a Hit on Profits, While the Other Says it will threaten jobs
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The National Highway Traffic Safety Administration has sent a cease-and-desist letter to Dolder, Falco and Reese Partners LLC, the company behind an aftermarket device called the Autopilot Buddy. Autopilot Buddy is a small, weighted device that clips onto either side of the wheel to place minor amounts of torque. This fools the Autopilot system into thinking that a driver has their hands on the wheel. The company markets the device as "nag reduction device", reducing the amount of warnings
This was bound to happen sooner or later
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With more people trending towards trucks and utility vehicles, it would be expected that prices on cars would be falling. But not on used cars according to Edmunds. In their latest Used Car Report, Edmunds says the average price for a used subcompact rose 3 percent in the first quarter. Compacts saw their average price increase by 3.9 percent. The reason according to the report is due to the increasing cost for a gallon of gas. "Used-car shoppers are typically more price-sensitive to
Thank you high gas prices
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If the Trump administration goes forward with placing a 25 percent tariff on new cars, it could cost automakers between one to two million sales. Analysis done by researcher LMC Automotive said if automakers pass on the full 25 percent tariff to customers, it could cut sales by about two million - about 10 percent of annual U.S. sales. If automakers absorb some some of tariff, the sales drop would reduce to just a million. Jeff Schuster, senior vice president of forecasting for LMC Aut
The possible 25 percent tariffs could do some serious damage to car sales
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President Donald Trump is no fan of German automakers. Take for instance this quote from last January, He has also made comments about BMW in the past few months in light of possible tariffs (which appear to be going into effect today). Now, new comments have been brought to light where the president wants to try and ban German cars from the U.S. German magazine Wirtschaftswoche reports that during French President Emmanuel Macron's visit to the U.S. in April, Trump said that he will
Because automakers really want more uncertainty
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Automakers already have enough of a headache with the current administration in the white house, but news that broke today is only going to make it even worse. Wilbur Ross, the U.S. Secretary of Commerce has announced that President Donald ordered an investigation under Section 232 of the Trade Expansion Act of 1962 to determine "whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security." "T
May lead to tariffs and other issues
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There has been a lot of talk about driverless cars with companies (both automotive and tech) promising a safe and grandiose future and a number of high-profile crashes that have resulted in fatalities. This got us wondering how the general public feels about them. Recently, two studies came asking this and their results are very interesting. First up is CarGurus which asked 1,873 vehicle owners in the U.S. between the ages of 18 to 65 about self-driving vehicles. 79 percent of participants s
Both have some interesting results
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One of the key materials used in electric car batteries is cobalt. But there are growing concerns that the supply of cobalt is getting scarce as more and more automakers begin building electric cars. A new report from Bloomberg New Energy Finance says cobalt shortages are expected to happen earlier than previously forecast. This issue possibly brings a big challenge to the rollout of electric vehicles over the next five to seven years. "The long lead time to bring on new mines and the
More electric vehicles mean more cobalt supply problems
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PSA Group's decade-long plan of possibly returning to the U.S. continues forward and they are facing their next roadblock, setting up a dealer network. Trying to convince dealers to sell brands that haven't been sold since the early nineties. But the French automaker believes they have a solution, using a tech-centric approach that will be affordable. "We see the high cost of doing this business; we see the challenges that exist in profitability for dealers and OEMs. We believe with the new
There's a fair amount of tech involved
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In 2009, the U.S. saw its lowest number of pedestrian deaths. But since then, that number has increased by 46 percent as pedestrian crashes have become more frequent and deadlier. Why is that? The Insurance Institute for Highway Safety released a study today investigating the possible reasons. One key indicator is the number of crashes involving SUVs. According to IIHS data, between 2009 and 2016, fatal single-vehicle crashes involving SUVs rose 81 percent - the largest increase of any vehi
Highest amount since 2009
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We all know someone who takes things a bit a too far. In the case of automakers, that someone is EPA Administrator Scott Pruitt. Back in April April, Pruitt announced a serious rollback of fuel economy regulations that were set in stone during the Obama administration. In a summary of the proposed draft, the EPA would rollback the fleetwide average from 46.8 mpg for the 2026 model year to around 37 mpg - the fleetwide average for the 2020 model year. The draft also mentions pre-empting "Californ
This isn't what we exactly wanted. -Automakers
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The past month has been quite strenuous on the relationship between the Environmental Protection Agency and the State of California. Back in April, EPA chief Scott Pruitt announced they would be rolling back the fuel-efficiency regulations set towards the end of President Obama's tenure. The EPA also announced that it was considering revoking California's waiver to set their own emission standards. A few days later, we reported that the officials from the White House, California, and automakers
It is getting a bit messy
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More and more automakers are launching subscription services as another option to get into new or used cars. But a new report shows the subscription services are still flying under the radar for most consumers. Autolist recently conducted a survey with 1,428 car shoppers in the second half of April. This is what they found out. 70 percent of shoppers had no idea that such a thing existed Out of the 30 percent of shoppers who knew about subscription services, only half could a
The reasons as to why are somewhat easy to explain
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The Volkswagen diesel emission scandal has given many a black eye. Robert Bosch GmbH, a supplier of diesel engine technology was one of those as it found itself under investigation by German authorities to see whether or not it aided and abetted in the scandal. The company also had to pay out $327.5 million as part of a settlement in the U.S. But the company isn't giving up on diesel just yet. This week at the Bosch’s annual press conference, CEO Dr. Volkmar Denner claimed they had found “de
But is it too late?
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Earlier this week, the Environmental Protection Agency announced that it would be rolling back the fuel-efficiency regulations that were approved during the Obama administration. The agency also announced possibly revoking California's waiver that allows it to set tougher standards on vehicle emissions. The state vowed to fight this. But a new report from the New York Times says California and officials from the Trump administration are in talks about possibly reaching a deal to avoid a legal fi
Trying to avoid legal trouble
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In a move that was expected to happen soon, the EPA announced that it plans to revise the fuel-efficiency regulations that were approved during the President Obama administration. “The Obama EPA’s determination was wrong. Obama’s EPA cut the midterm evaluation process short with politically charged expediency, made assumptions about the standards that didn’t comport with reality and set the standards too high,” said EPA chief Scott Pruitt in a statement today. The statement goes on t
You can guess who likes and despises this
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It is no secret that buyers are gobbling up SUVs and crossovers, nor is it that automakers are introducing new and redesigned models. Take a look at the New York Auto Show this week where a number a new models (Toyota RAV4 and Subaru Forester) and concepts (Lincoln Aviator) made their debut. According to automotive consultancy firm LMC Automotive, there are currently 63 mainstream crossover and SUV models, and 53 luxury models. By 2023, LMC is projecting 90 models for both mainstream and lu
But is there such a thing as too many?
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Ever since PSA Group announced that it would be making a return the U.S. as part of a 10-year plan, there has been a large amount of speculation as to which brand would be sold. Would it be Citroen, DS, Peugeot, or the recently acquired Opel/Vauxhall? “We’ve chosen a brand, but it’s too early to talk about it,” said Larry Dominique, president and CEO of PSA North America to Car and Driver. PSA Group is still in the first phase of its plan with the Free2Move mobility aggregation platfor
But they aren't saying which one.
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The Geneva Motor Show saw Mercedes introduce their new AMG GT 4-Door and BMW revealing their M8 Gran Coupe concept. We still find ourselves scratching our heads as to why these vehicles exist in the first place, but a new Bloomberg report explains an interesting reason as to why automakers are building them. These high-performance models with high price-tags will help generate the cash needed to develop electric vehicles. BMW for example is in the midst of its largest rollout of new models
How else are they supposed pay for it?
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A big complaint you'll hear from journalists covering the Detroit Auto Show is the month that it is held. January is a miserable time in the north with cold temperatures and endless amounts of snow. But there could be some relief coming. The Wall Street Journal has learned from various sources that organizers of the show are considering moving the show from January to October. Crain's Detroit Business adds that show officials have been floating this idea for more than a year with automakers
You mean we can attend the show when it is warm?!
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Geely Automotive's chairman Li Shufu made headlines last week by dropping $9 billion for 9.69% stake in Daimler AG, making him the biggest shareholder in Mercedes-Benz's parent company. This follows a trend by Geely in buying automakers (Volvo in 2010, a 51 percent stake in Lotus last year). But a new report from Bloomberg reveals Shufu had his eye on a possible bigger prize. Last year, Shufu approached Fiat Chrysler Automobiles about "a potential takeover". According to people familiar wit
Was Geely the mysterious bidder last year?
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Germany's highest court, the Federal Administrative Court ruled today that cities can ban older diesel vehicles to help cut pollution. According to Reuters, the case was brought to the Federal Administrative Court after local courts ordered the Düsseldorf and Stuttgart governments to ban older diesel vehicles. The states disagreed with this decision and appealed it to the highest court. Originally, the Federal Administrative Court was expected to rule on the case last week, but it was push
Environmentalists love it, Government officials hate it
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Another wave of fallout from the Volkswagen diesel emission scandal could be coming later this week in a German court. Reuters reports that Germany’s federal administrative court will be ruling whether or not local governments could ban diesel vehicles. Environmental group DUH sued the Stuttgart and Duesseldorf governments for over levels of diesel particulate matter exceeding European Union limits after Volkswagen admitted to cheating on emission tests. Local courts ordered the government
Could cause serious issues in terms of resale values
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If you have been following auto sales for the past few years, then you know that SUVs and trucks currently dominate the sales charts partly due to the low gas prices. This is especially true when it comes to the luxury segment, where utility models are eating sedans. But a new report from The New York Times reveals that American automakers are eating the lunches of luxury car manufacturers. According to data from Edmunds, the likes of Ford, Chevrolet, and GMC have seen their share of domes
American automakers are cleaning up here.
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January is usually not a strong month for car sales as it just after the holidays and people don't have the money to buy a new car. This is reflected in our January sales figure ticker where most automakers post small increases and decreases. There were some automakers that posted some surprising numbers. Nissan reported a 10 percent increase and Toyota noted an impressive 16.8 percent rise. The two automakers credit their utility as a key reason for the rise. But Bloomberg reports there is anot
How do you explain a noticeable increase in January sales?
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The New York Times dropped a bombshell of a report last week saying that German automakers funded an experiment that had 10 monkeys in airtight chambers, inhaling diesel fumes from a Volkswagen Beetle TDI. The experiment took place back at an Albuquerque, New Mexico laboratory in an effort to prove newer diesel vehicles were cleaner than older models. But researchers were unaware that the Beetle used in the experiment was equipped with a defeat device that allowed it produce fewer emissions in t
No, we are not making this up
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We have heard countless promises and teases from various Chinese automakers about entering the U.S. market. But one automaker appears to be making a serious effort to make it a reality. Last week at the Detroit Auto Show, Guangzhou Automotive Group (GAC) announced that it plans on launching the GS8 SUV in later 2019, and will attend this year's National Automobile Dealers Association convention in March. "We will attend the NADA convention in preparation for entering the North America
We might have a Chinese automaker selling vehicles in the U.S. by 2019. Might.
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PSA Group CEO Carlos Tavares told attendees of the Automotive News World Congress yesterday they are employing the know-how from Opel engineers to develop vehicles for the U.S. market. Tavares declined to say which brand will lead the charge but did hint that future Opel models would be engineered to be compliant with U.S. regulations. Launching one of PSA Group's brands will be the last step in the company's 10-year plan of re-entering the U.S. market. Already, PSA is offering mobility se
Also announced plans to electrify their entire lineup
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You find yourself in the showroom, ready to drive away in a new Chevrolet Bolt, Nissan Leaf, or Tesla Model S. But there is one big question that needs to be decided, do you buy or lease it? According to a report from Bloomberg, most buyers of EVs tend to lease. In the U.S., almost 80 percent of electric vehicles on the road are leased according to their report. It also says that 55 percent of plug-in hybrids are leased. More than 80 percent of BMW i3s are leased as an example. The key reas
There's a good reason why EV buyers are leasing
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As lawmakers continue to work on comprehensive tax reform, one item related to the automotive industry on the table was the tax credit for electric vehicles. The credit, which can be up to $7,500, was dropped in the House version of the bill but kept in the Senate version. The credit was started in 2009 as part of the economic stimulus package as a way to encourage investment by auto manufacturers in the development of electric powered or assisted vehicles. The the current version of the bil
The credit of up to $7,500 remains untouched.
- Editor-in-Chief
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Europe is starting to develop a case of pickup truck fever. According to data from JATO Dynamics, 80,300 trucks were sold in Europe in the first half of this year. This pales in comparison to the 1.1 million full-size and 216,194 midsize trucks sold in the U.S. in the same timeframe. But sales in Europe are climbing. LMC Automotive says sales of trucks in Europe are up 19 percent and they predict sales will crest 200,000 next year. Why this steady rise in pickups? According to Automotive Ne
Not even Europe is immune to pickups
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A self-driving shuttle service got off to an auspicious start yesterday in Las Vegas when it was involved in an accident with a delivery truck. According to NBC affiliate KSNV, the accident took place during the shuttle's first hour of service when a delivery truck back into the shuttle. According to an AAA representative on Twitter, the driver was cited by Las Vegas Metro Police. "The autonomous shuttle was testing today when it was grazed by a delivery truck downtown. The shuttle did
Not off to a good start
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Whenever Bob Lutz speaks, many people tend to listen as he a number of years of being in the automotive industry under his belt. Recently, Lutz wrote an editorial for Automotive News' Redesigning the Industry where he predicts we are “approaching the end of the automotive era,” within the next 20 years. “The end state will be the fully autonomous module with no capability for the driver to exercise command. You will call for it, it will arrive at your location, you’ll get in, input your des
When did Bob Lutz become Nostradamus?
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Luxury automakers have been taking full advantage of the high-demand for SUVs and crossovers and raking in the dough. But as Neuton's third law of physics tells us, "for every action, there is an equal and opposite reaction." In the case of luxury automakers, they have a number of sedans and coupes from lease turn-ins that they cannot sell. “It’s not necessarily the overwhelming amount of vehicles, it’s the mix of those flood of vehicles. You’re throwing all these cars into the marketplace
Need a good deal on a used luxury car? They're out there.
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A number of companies that are working on autonomous driving systems are implementing features that require a driver to take control in hairy situations. But Waymo, the self-driving unit of Alphabet (Google's parent company) recently revealed they have stopped developing these features. The reason is simple, drivers lacked the awareness to take over driving. Waymo's CEO John Krafcik told reporters yesterday the decision to scrap this technology comes down to experiments done back in 2013 wi
Experiments showed people were too distracted to perform this task
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Infotainment systems are one the banes of the automotive world. From confusing interfaces and controls, to issues with crashing and features not working. Add distracting drivers to this list. The AAA Foundation for Traffic Safety worked together with researchers at the University of Utah to measure the time it took to complete the task, and the visual and mental demand on the driver. 120 drivers were asked to perform various tasks such as operating the stereo and putting in information for n
30 vehicles and their infotainment systems are put under the microscope
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Between now and 2022, at least 50 electric vehicles will be launched. They'll be coming from the likes of Volkswagen, Diamler, and General Motors. Heck, even Dyson is getting into the game. But why this rush to get EVs on the road? It comes down to two things, Tesla and upcoming regulations. “Nobody doubts that the future will be electric. The car companies dragged their feet with electric. Now they are being dragged into it by Tesla and by regulations,” said Erich Joachimsthaler, founder
But will anyone buy them?
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The State Fair of Texas began last week and truck manufacturers were out in force with new models to tempt consumers in the largest truck market in the U.S. Both Ford and Ram Trucks rolled out new luxury trims of their pickups - Ford with the Limited and Ram with the Longhorn Southfork. Both trims can easily reach $100,000 which to some is pushing it. But marketers at the truck manufacturers tell Automotive News they don't know where the ceiling is on how much consumers are willing to spend.
And automakers don't know where the breaking point is
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It seems everyone is getting into the car business, whether that is through autonomous technologies or electric vehicles. The latest entrant may surprise a number. Yesterday, Dyson (yes, the vacuum cleaner maker) announced that it was working on an electric vehicle. Rumors about this have been swirling for a few years. Last year, the documents from the UK government revealed a £16 million ($22.54 million) grant was awarded to the company for the research and development on batteries, which
Yes, the vacuum cleaner company.
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California is considering joining France and Great Britain in banning the sale of gas and diesel-powered vehicles. Governor Jerry Brown has been expressing an interest in banning the sale of internal-combustion engines according to Mary Nichols, chariman of the California Air Resources Board. “I’ve gotten messages from the governor asking, ‘Why haven’t we done something already?’ The governor has certainly indicated an interest in why China can do this and not California,” she said to
Come on, don't tell us you didn't see this coming
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Most new cars and trucks sitting on dealer lots have fuel economy estimates on their window sticker. The only group of vehicles that don't are heavy-duty trucks. This is due to the EPA not requiring automakers to publish estimates on trucks with gross weight ratings that exceed 8,500 pounds. This makes it difficult for folks to compare the heavy-duty trucks with one another or comparing the diesel variants with the light-duty gas versions. Consumer Reports doesn't believe it should be this way a
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As PSA Group - parent company of Citroen, DS, and Peugeot - gradually makes moves into possibly selling vehicles into the U.S., they are taking the next step by engineering their next-generation vehicles to meet U.S. regulations. "That means that from three years down the road we'll be able to push the button, if we decide to do so, in terms of product compliance vis-a-vis the U.S. regulations," said PSA Group CEO Carlos Tavares to Automotive News. Tavares also said PSA has decided whi
It appears PSA Group taking the next step into their U.S. plans
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Automakers have been trying different technologies and ideas in an effort to boost fuel economy and reduce emissions. On paper, the new technologies do make a difference. But in the real world, it is a completely different matter. Emissions Analytics, an independent U.K.-based company has been investigating what technologies actually make a difference in reducing emissions and fuel consumption. For the past four years, the company has tested over 500 vehicles in the U.S. since 2013 in real
On paper is one thing, the real world is another matter
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The recovery process of Hurricane Harvey is in full swing and nowhere is this more apparent than the amount of people heading to dealers. Steven Wolf, chairman of the Houston Automotive Dealers Association tells Automotive News that dealers in the Houston area "abnormal" traffic as people come in looking for a replacement. The sudden rise isn't that surprising as the Houston metro area is about the size of New Jersey. Wolf said the first order business for many folks is to get back into a
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China is the latest country to investigate possibly ending the sale of gas and diesel vehicles. According to the state's Xinhua News Agency, deputy industry minister Xin Guobin told an auto industry forum over the weekend has started "research on formulating a timetable to stop production and sales of traditional energy vehicles." “Some countries have made a timeline for when to stop the production and sales of traditional fuel cars,” said Guobin. “The ministry has also started re
Possibly following in the footsteps of France and Great Britain
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Analysts believed that August was going to be the month the auto industry would post its first year-over-year increase for 2017. But then Hurricane Harvey hit Texas, leaving a path of destruction and extensive flooding. Sales for the month would drop 1.9 percent to 1.48 million vehicles when compared to the same month a year ago. "Harvey will also depress one of the most critical selling periods of the year, spanning the August sales month close and Labor Day weekend. In 2016, these 11 days
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There are more expenses to owning a new car aside from making a monthly payment. You have gas, maintenance, repairs, and depreciation to worry about. The total cost according to a new study from AAA will depend on the type of vehicle you're driving. AAA's Your Driving Costs study reports that average cost to own and operate a new vehicle in 2017 is $8,469 per year - $706 per month. The study looked at 45 new vehicles from the 2017 model year and evaluated the various costs such as gas and ma
Electric vehicles don't have a great showing here
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The past few years have been tiring if you happen to be a millennial. There has been countless articles talking about how this group are not buying houses or vehicles. Of course, the reason is that millennials don't have the money (saddled with more debt, having entry-level salaries, etc). But that is changing. According to a report from Bloomberg, millennials are beginning to head out to the suburbs, and purchasing houses and cars. The reason? They're having their baby boom. According to d
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Only a few weeks ago, Toyota and Mazda surprised everyone by announcing a new alliance. The two would collaborate on a number of projects including a $1.6 billion assembly plant, possibly bringing 4,000 new jobs. At the time, the two automakers haven't decided where the plant would go, which sent various states in a frenzy. A report from the Detroit Free Press has learned that the two have sent out a blind request for proposals from states in Midwest, mid-Atlantic and South. Sources tell th
Over a dozen states are involved
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The Frankfurt Motor Show is only just a month away, where will see a new selection of production and concept vehicles. But there will be some no-shows. Automotive News Europe has learned of nine automakers that will be skipping the show. They include, Alfa Romeo DS Fiat Infiniti Jeep Mitsubishi Nissan Peugeot Volvo The nine automakers combined make up 20 percent of all automotive sales in Europe. So why are they skipp
More automakers are deciding to skip Frankfurt
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Last month, electric vehicle start-up Faraday Future halted construction on their $1 billion production facility in North Las Vegas. At the time, FF said they would be looking into purchasing or leasing a production facility in either California or Nevada to get production of the FF 91 up and running. Today, Faraday has announced they have leased a factory in Hanford, California - about 200 miles north of their headquarters in Los Angeles. The facility is million-square-feet and the company
Some actual good news for Faraday Future
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Mazda and Toyota announced today a new alliance that will strengthen their current partnership and see the two collaborate on a number of projects. The big news is a new, $1.6 billion joint-venture assembly plant for the U.S. The location hasn't been revealed, but it will produce Corollas and Mazda crossovers. The plant is expected to open in 2021 and produce up to 300,000 vehicles per year. The other big news deals with the two forming a shared capital structure. Toyota will acquire 5.05 pe
Part of a new alliance between the two
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While the primary focus at PSA Group for the past few months has been purchase of Opel and Vauxhall from General Motors, there has been another project that has been going in the shadows, the return of the French automaker to the U.S. Speaking at the CAR Management Briefing Seminars this week in Traverse City, MI, the CEO of the recently established PSA North America Larry Dominique gave a status update. Back in April, PSA made their first foray into North America with the launch of ca
Progress is being made. Slowly.
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Great Britain is planning to ban the sale of conventional gas and diesel vehicles from 2040 to help reduce air pollution. The government announced this in a paper published by the Department for Environment, Food and Rural Affairs (DEFRA). "There should be no new diesel or petrol vehicles by 2040," said environment minister Michael Gove to BBC Radio. This is part of the government's £2.7bn blueprint for tackling air pollution. This includes investments going towards building out a char
Hybrid vehicles not involved in this ban
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Electric car startup Lucid Motors has been in process of trying to raise extra cash to move forward with the development of their first model, the Air and a factory in Arizona. But Bloomberg has learned from sources at the startup that Lucid reached out to Ford about a possible sale. Reportedly, Ford said they are not looking for a deal at the moment. Currently, the blue oval is undergoing a 100-day review by new CEO Jim Hackett. Interestingly, a source went on to say that Ford isn't ruling out
The electric start-up is looking for money
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Unless you have been living underneath a rock, then you know that the popularity of crossovers and SUVs have been booming. A new analysis reveals this popularity will not be going away anytime soon. IHS Markit looked at consumer loyalty rates for various body styles from 2012 to April 2017 and found that 66.2 percent owners of SUV and crossover models returned to buy another - the highest IHS has ever recorded. To give some perspective, pickups come second at 50.9 percent. "We collect
Stand by your SUV/Crossover
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The comedy of errors that is electric car startup Faraday Future continues. According to the Las Vegas Review-Journal, Faraday Future has stopped construction on its $1 billion production facility in North Las Vegas. The company in a statement the decision came down to a changing business strategy. “We have decided to put a hold on our factory at the Apex site in North Las Vegas. We remain committed to the Apex site in Las Vegas for long-term vehicle manufacturing.” Faraday goes on to s
More bad news for Faraday Future
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Airbag manufacturer Takata is at the center of one the largest automotive recalls which affect an estimated 100 million vehicles from two dozen automakers around the world. The airbags in question have inflators that can rupture and send shrapnel flying in the event of a crash. They have been linked to at least 16 deaths and 180 injuries. Now, the next chapter begins as Takata filed for bankruptcy. Yesterday, TK Holdings (Takata's U.S. operations) filed for Chapter 11 bankruptcy in Delaware
We knew this was going to happen
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Towards the end of Obama presidency, the administration unveiled guidelines for testing and deployment of self-driving cars in the US. But there is a new presidency in the White House and that means things will be changing - although details are scarce as to how. U.S. Transportation Secretary Elaine Chao said in Detroit yesterday the Department of Transportation would revisit and revise the guidelines put forth by the previous administration within the next few months. "The pressure is
A New Presidency Means Changes, Including Guidelines for Self-Driving Vehicles
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While car sales are down, the number of people opting for loan lengths from 73 to 84 months is going up. Karl Kruppa, senior automotive solutions consultant for Experian said at a conference last week that the share of 73 to 84 months car loans has been rising over the past eight years. Through February of this year, 33.8 percent of loans were for terms longer than 73 months. Other numbers to take into consideration, In the fourth quarter of 2010, three-fourths of new-car loans
Long-term loans for new and used cars are increasing
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Here is a paradox for you: Automakers have been increasing the number of safety features in their vehicles to help protect or avoid a crash. But this has also brought an unforeseen consquence; crash your vehicle and it is more likely that your insurance company will total it. That's according to a story from Automotive News who spoke with Bob Tschippert, senior vice president of Dallas-based underwriter Risk Theory. Tschippert explained that all of these new features has increased the costs
How new safety features are causing more vehicles to be totaled
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April's auto sales are one most automakers would like to pretend never happen due to big declines. But if there is a silver lining to April sales, it has to go to small sports cars. Automotive News ran the numbers and found that sales of small sports cars rose 3.4 percent so far this year. Contrast this with 12 percent drop in overall demand for cars. The big winner in this group was the Mazda MX-5 Miata with sales up 35 percent so far this year. Sales in April declined slightly from March
There is a slight silver lining to April's sales figures
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Sales of new cars in the U.S. have been dropping in the past three months and analysts believe April's sales results will be much the same. But why are sales falling? It comes down to prices of new cars going up and up. According to data from ALG True Car, the average new-car price rose two percent when compared to last year. Kelly Blue Book reports that the average transaction price in March increased 1.7 percent to $34,342 when compared to the same time last year. There are a number of fa
It's the prices stupid
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Chinese automakers see the U.S. as a land opportunity and have been making promises to start selling vehicles in the near future. None so far have made it. Now one Chinese brand is reconsidering their plans. SAIC Motor Corp., China's largest automaker and partner with GM, has put their U.S. ambitions on hold. Michael Yang, executive director of SAIC Motor’s international department said at a briefing that they have uncertainties about the trade policy between China and the U.S. due to the e
SAIC: You know on second thought, we're going to put our plans entering the U.S. on hold
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The rivalry of the Chevrolet Camaro and Ford Mustang has been going for ages in the U.S. But now this fight has expanded into China. Automotive News reports that a growing group of Chinese buyers are being drawn towards to these models as the exude the no-apologies Americana attitude. "We're seeing the beginning of a muscle car culture here. Something that is uniquely American appeals to the Chinese consumer. The image that it relays to the automotive public is very positive," said Jam
The Camaro and Mustang fights expands into China
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Last October, Chinese automaker Geely unveiled a new global brand called Lynk & Co. This brand stood out in a few ways, Vehicles will be sold online Owners will be able to share their Lynk & Co vehicles to make some money An open application programming interface to develop in-car applications Recently announcing all of their vehicles would come with lifetime warranties The plan was for the brand to launch in China this year, with Europe and U.S. followi
Lynk & Co's plan to go into Europe and U.S. has been pushed back
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PSA Group is slowing making end roads into U.S. as part of their 10-year plan. We have already reported on their carsharing service, TravelCar that will be launching in select markets this month. Now, the French automaker has taken the next step by announcing former Nissan and TrueCar executive Larry Dominique as a Senior Vice President of PSA North America. Automotive News reports Dominique's role will first deal with the car-sharing aspects before starting to make progress on one or all o
Meet PSA Group's new VP of North America
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For the past few years, luxury automakers have been trying to fill every single niche they could think of. It's why we have such models as the BMW 5-Series GT and Mercedes-Benz GLC-Coupe for example. But now, BMW and Mercedes-Benz admit they have too many models and are planning to cut some. “The checkerboard of body styles and segments is rather full, although there are still a few to be finished. We’ve got an X2 and an X7 coming, and there are a few others, but I also know—because we’ve t
Bad News, coupes and convertibles are on the chopping block
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In a not surprising move, President Donald Trump announced today that his administration will reopen a review into the 2025 fuel economy standards set by the EPA before the end of President Barack Obama's term. “We’re going to work on the CAFE standards so you can make cars in America again. There is no more beautiful sight than an American-made car,” said Trump at an event in the former Willow Run bomber factory in Ypsilanti, Michigan - soon to become a testing ground for autonomous vehic
Back to the review desk
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While the big story at PSA Group (parent company of Citroen and Peugeot) is about the possible sale of Opel, they are also getting ready to begin to take their first steps into re-entering the U.S. marketplace. In April, car-sharing service TravelCar will launch at airports in Los Angeles and San Francisco. The service has been operating at various airports and train stations in Europe since 2012. The expansion into the U.S. is thanks to a 15 million euro (about $18.5 million) investment by
Via CarSharing
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Hatchbacks have never sold well in the U.S., but that could be changing thanks to new entrants and hotted-up models. According to a forecast done by IHS Markit, sales of hatchbacks are projected climb 19 percent this year. By 2020, the firm projects sales of 567,000 hatchbacks. What has changed? Some of this comes down to hatchbacks finding a niche market. Michelle Malcho, spokeswoman for Chevy cars and crossovers tells The Detroit News that active, urban buyers who are wanting a bit more f
The bright spot in the passenger car market could be the hatchback
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Since President Donald Trump was elected, automakers have been pushing for him to relax the stricter fuel economy and emission regulations coming into effect by 2025. Now there is another group calling for this. At the National Automobile Dealers Association (NADA) annual conference, dealers voiced support for the new president ease the upcoming regulations. "You inflate the price of the vehicle and a car that was maybe within reach of being affordable now may not be," said NADA's new
It isn't automakers who want the stricter fuel economy and emission regulations for 2025 to be relaxed
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The CEOs of Detroit's three automakers met with President Donald Trump this morning to talk about investments. Specifically, investments into U.S. manufacturing. "We have a very big push on to have auto plants and other plants -- many other plants," Trump told reporters at the meeting. “We’re going to make the process much more simple for the oil companies and everybody else that wants to do business in the United States.” During the meeting, Trump told the CEOs that he plans on cutti
What did the three Detroit automakers talk about with the new president?
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Technology is moving at a rapid rate and it seems every aspect of our lives are affected by it. Take for example cars, many believe in the future that cars will be fully self-driving and be powered by some sort of alternative powertrain. One person believes that kids born now will not even need a driver's license because of this technology. Henrik Christensen, head of UC San Diego’s Contextual Robotics Institute said in an interview with The San Diego Union-Tribune said in about 10 to 15 y
Kids born today may not need a driver's license
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The Takata Airbag recall now stands as the largest vehicle recall ever due to how many vehicles around the world use them. In the U.S. alone, 19 auto manufacturers have recalled 49 million vehicles with the airbags that can shoot out shrapnel in the event of an accident. 11 deaths and 184 injuries in the U.S. have been linked to these airbags. Due to this, Takata has been facing numerous lawsuits and investigations. A new report says that Takata is close to closing one of those investigations.
Takata could be settling with the Justice Department over the massive airbag recall
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More and more police departments are going towards crossovers and SUVs for their fleets. According to Automotive News Canada, police departments are going with these vehicles over their sedan counterparts as they are able to fit all of their equipment needed on a daily basis. Officers like them as crossovers and SUVs are easier to get in and out. “We’re all dealing with the same issue, and that is the vehicles are getting smaller, yet there’s still demand for more gadgets and equipment put
The next police vehicle that pulls you over maybe an SUV/Crossover
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There is a right way and a wrong way when it comes to testing autonomous vehicles on public roads. Uber has demonstrated the wrong way. Yesterday, the company launched eleven driverless Volvo XC90s in San Fransisco as part of a pilot program. But by late morning, two of the eleven vehicles were running amok. The San Fransisco Examiner got their hands on a dash cam video showing one of the XC90s running a red light at 10:37 A.M. Later that morning, a freelance producer and writer tweeted “Ju
Uber finds itself in hot water over their autonomous driving program in San Fransisco
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Only a couple of months after electric vehicle start-up Lucid Motors came out of the dark and unveiled an unnamed prototype vehicle, they have unveiled their first model named the Air. The model is taking direct aim at Tesla and their Model S sedan. The Air is powered by two electric motors - one on each axle - and can be paired with either a 100 kWh or 130 kWh battery pack. Total output stands at 1,000 horsepower. In terms of range, the 100 kWh battery pack is estimated to provide over 300
Another electric car start-up throws its hat into the ring.
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The past few years have seen a number of start-ups tackling an issue that has been a thorn in the side of consumers, buying a used car. Companies such as Beepi, Carvana, Shift, and Vroom have their own take on selling used vehicles, but the goal is the same - make it less of a hassle to buy a car by selling directly to a consumer through the internet at a lower price. But one of these companies has folded most of their operations. Beepi, one of the first companies to launch back in 2014 fol
A start-up trying to make it easier to buy used cars has folded up
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Michigan Governor Rick Snyder signed into law today a full suite regulations regarding the testing, use and eventual sale of autonomous vehicles in the state. “By establishing guidelines and standards for self-driving vehicles, we’re continuing that tradition of excellence in a way that protects the public’s safety while at the same time allows the mobility industry to grow without overly burdensome regulations,” said Synder in a statement. The new law will allow vehicles without stee
Michigan becomes more friendly with autonomous vehicles
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The Environmental Protection Agency has today proposed to keep its vehicle emission targets through 2025, shocking a lot of people and possibly setting up a major fight between regulators and the automotive industry. According to Automotive News, the proposal will now enter a 30-day comment period. After this period, the EPA administrator could finalize this proposal and begin enforcing these standards a bit quicker. By 2025, automakers will need to increase their to 54.5 miles per gallon
The EPA is moving forward with the upcoming 2025 Emission Regulations
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A record number of consumers are finding themselves 'underwater' when it comes time to trade-in their vehicle - the vehicle is worth less than what they owe on their loan. The Detroit Free Press cites a study done by Edmunds revealing that in the second quarter of this year, 32 percent or nearly one-third of vehicles being traded in fall into the 'underwater' category. This isn't good news for consumers since the difference is tacked on to the new vehicle they had their eye on. To put
A number of factors play into this
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Fisker is beginning to drop information on their new vehicle called EMotion along with some clear images of the model. The design is.. well... out there. The side profile looks be a Karma that has been squished. There are tall wheel wells and deep cuts in the doors. The front end is something - we're going with the policy if you have nothing nice to say, don't say anything. The vehicle is built out of aluminum and carbon fiber. Fisker is already making some claims about the EMotion suc
Fisker is already making bold claims on a vehicle that isn't coming out till mid-2017
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You're a Volkswagen 2.0L TDI owner who decided to take the buy-back offer. You have a sizeable check in your pocket and decide to go looking for a new car. The folks at Hyundai and Volvo are hoping you buy one of their vehicles and are offering special deals to try and rope you in. CarsDirect has learned about the offers the two automakers are putting forward to former Volkswagen owners. Hyundai's offer is the Hyundai Circle V-Plan - think Ford's X plan pricing for friends and family. This
Hyundai and Volvo are wanting to court former Volkswagen 2.0L TDI owners with special deals
