+++ General Motors is reportedly making final preparations to begin building CADILLAC ’s XT4. The new crossover will add a critical third option in Cadillac’s high-riding model lineup, slotting below the current XT5 in terms of size and price. The company is currently building test versions of the XT4 at its Kansas City assembly plant, sources have told. “It’s a new architecture for us, and it is up to the task”, Cadillac president Johan de Nysschen said in a statement. “It’s the right size, dynamics and sophistication to attain what I believe is worthy of a Cadillac in this segment”. Spy shots suggest the smaller crossover will not stray far from the XT5’s silhouette and styling. A turbocharged four-cylinder engine is expected to serve as the primary powerplant. GM is also believed to be building a larger crossover to slot between the XT5 and Escalade. +++
+++ The sky seems to be the limit for Hyundai’s GENESIS brand, as the Koreans are reportedly working on a supercar project that will supposedly lead to the creation of a Ferrari and Porsche challenge. At least in terms of performance and perhaps even in looks, because it’s one thing matching those established brands on paper, and another actually competing with them and poaching their clientele. The information was confirmed by Hyundai Design chief Luc Donckerwolke and Vice-Chairman of R&D, Woong-chul Yang. “We are definitely doing it. I’m actually reviewing the project next week. I can’t tell you much more about it, but we are definitely doing it. We are not going autonomous for all of our cars”, Donckerwolke said. Contrary to popular belief that a halo supercar from Genesis would have nothing to do with the Hyundai N arm, Yang added that it will likely be developed by the performance division, under the close watch of Albert Biermann, who is the former BMW M chief. “We are very much interested in it, and as far as I’m concerned, I’d love to promote that. That’s something our brand needs at this time. The people working at N will be working on that, but how we put it in the N or maybe above N… it’s pretty high performance. It’s serious”, commented Yang. The project will likely arrive in the coming years with a 2-door body style, being powered by a small internal combustion engine, backed up by electric motors and batteries. It should also be something to look at, given that Donckerwolke gave a helping hand in the design of the Lamborghini Diablo and Gallardo, from his position within the Volkswagen Group. Reporting directly to Luc Donckerwolke, who is the Head of Genesis Design, is Alexander Selipanov, who’s name probably doesn’t say anything to the vast majority, but he is the man that helped design the Bugatti Chiron. +++
+++ HONDA has announced a partnership between its innovation programme, Honda Xcelerator, and 6 technology start-ups. The aim is to improve future mobility tech, including autonomous drive systems and artificial intelligence. Honda Xcelerator is part of Honda Innovations, a Silicon Valley-based centre that focuses on providing access and funding to experimental start-ups. It prioritises enterprises working on connected vehicles, artificial intelligence, energy innovation, personal mobility solutions and robotics. The partnerships include companies from the US, Canada, Europe, Israel and Singapore. New York-based Braiq is developing tech that measures passengers’ reactions to autonomous driving systems to personalise the way the car drives itself, while DynaOptics, based in Singapore, provides autonomous camera lenses with advanced ‘free-form’ optics. Honda is also investing in California’s DeepMap, which provides high-definition, real-time maps as a service to autonomous cars, and Tel Aviv-based Exo Technologies, which claims to provide high-accuracy, low-cost GPS positioning solutions for driverless systems. Finally, it has partnered with Canadian start-up Tactual Labs, a team from the University of Toronto that is innovating with real-time human body ‘pose sensing’, used in gesture control systems for in-car tech. The Japanese carmaker is appealing to further start-ups to apply into its programme during the CES show. +++
+++ KIA will introduce 16 new electrified vehicles by 2025, including the company’s first-ever fuel-cell electric vehicle in 2020, the South Korean manufacturer confirmed. “By 2025, we will offer a total of 16 advanced powertrain vehicles, with 5 new hybrids and plug-in hybrids, 5 new battery EVs, and an all-new mass market FCEV. Due to launch in 2020, this FCEV will spearhead Kia’s efforts to realize a zero-emission future for mobility”. Dr. Woong-chul Yang, vice chariman and head of Kia’s R&D centre said. The announcement follows the unveiling of Kia’s Niro EV concept. The concept, also shown at CES, is said to represent the “brand’s ongoing journey to electrification”, and includes new technology such as the Active Pedestrian Warning System capable of spotting both pedestrians and cyclists and warning them via speakers. The Niro EV concept also benefits from new EV-battery production techniques that will be earmarked for future models. The concept is powered by 64 kWh lithium/polymer battery pack that’s paired to a 150 kW electric motor. A driving range of 383 kilometres has been suggested, with company sources saying a bigger battery system could take this up to around 500 kilometres. Though details of Kia’s fuel-cell vehicle are sparse at the moment, it’s sister brand Hyundai has released pictures and details of its hydrogen concept car. The Hyundai NEXO, which also debuted at CES, is has a hydrogen fuel cell system that’s 20 percent lighter and nine per cent more efficient than the company’s ix35 fuel cell vehicle. It’s also 20 percent more powerful with a 163 hp output. +++
+++ The MERCEDES GLB will be available with 3 powertrain options when launched in 2019 as a rugged small SUV to sit beneath the G-Class, and more road-biased SUVs in the brand’s lineup. Recent trademark filings suggest that 200, 220 and 250-badged variants of the GLB will be available, with engines shared with the smaller Mercedes-Benz offerings like the A-Class and CLA. The GLB’s engine line-up will feature an updated range of Mercedes and Renault-Nissan-sourced four-cylinder petrol and diesel units spanning 160 hp in an entrylevel model to more than 300 hp in an AMG-badged flagship. Also planned is a plug-in petrol-electric hybrid variant with modest zero-emission capability. Being one of Mercedes’ smaller models, it’s likely to get an AMG 45 range-topper, with a warm mild hybrid-powered 35-badged variant to match the upcoming A-Class. Development of the long-mooted GLB, a heritage-themed SUV that will rival the Audi Q3 and BMW X1 more directly than the existing GLA, has been accelerated to bring the car to market in 2019. The move is part of Mercedes’ plan to retain sales momentum in the lucrative premium compact car class. The GLB will be part of a future 8-strong family of compact models announced by Mercedes chairman Dieter Zetsche at the Detroit motor show in January. The new high-riding model will slot into the Mercedes line-up above the existing GLA and below the GLC. Its likely starting price will be around 48,000 euro in The Netherlands when it goes on sale in 2019. The GLB is one of three new models confirmed as future additions to the existing 5-strong Mercedes compact car line-up. It joins a new 4-door A-Class saloon, which will be previewed as a concept car at the Shanghai motor show last April, and an as yet unknown model, although one possibility is a dedicated coupé in the mould of the Audi TT. The new line-up will kick off in the coming months with the launch of the new 4th generation A-Class. The new GLB is known under the internal codename X247 and is said to draw heavily on the well-received Ener-G-Force concept seen at the 2015 Los Angeles show. The GLB combines styling cues inspired by the tough military vehicle design of the 38-year-old G-Class with more contemporary flourishes from the 2014 G-Code concept, although latest shots of the development model suggest a lower, boxy appearance like that of the GLK, the GLC’s predecessor. Buyers will be able to choose between a series of optional styling packages, including a rugged-looking off-road appearance, with extra cladding and increased ride height, according to insiders privy to the final design. Chosen by Mercedes board members over an alternative long-wheelbase B-Class, the standard GLB earmarked for sale is set to be around 4.600 mm in length, which is 180 mm longer than the recently facelifted GLA. The GLB is based around a version of Mercedes’ MFA platform that will be reworked to offer greater production flexibility and lower weight than today’s structure. The new SUV will be offered with a choice of 2 wheelbases, with either a 5-seat or a 7-seat layout, in a move mirroring that of the Q3, X1 and Volkswagen Tiguan. Details remain scarce with production more than a year away, but sources suggest the long-wheelbase variant, which extends to almost 4.800 mm, may be sold only in selected markets, such as China and the US. Inside, the new GLB is expected to share its dashboard and appointments, including a new Comand 6.0 touch screen infotainment system, with other new compact Mercedes models, including the 4th generation A-Class, 3rd generation B-Class, 2nd generation CLA (and CLA Shooting Brake) and the new A-Class saloon. +++
+++ The USA and SOUTH KOREA talk about a new trade dealm which comes at a time of great pressure due to North Korea’s nuclear arms. President Trump wants to sign a trade deal with South Korea that strikes a balance between his domestic agenda and the need to contain North Korea’s nuclear ambitions. Since signing the previous U.S-Korea Free Trade Agreement in 2012, the U.S. goods trade deficit with South Korea has doubled. Almost 90 percent of the 2016 shortfall (27.6 billion dollar) came from the automotive sector, which is an issue expected to be pressed hard during the negotiation. The talks are led by Assistant U.S. Trade Representative Michael Beeman and the Director General for FTA negotiations at South Korea’s trade ministry Yoo Myung-hee. Yoo confirmed that the U.S. has primarily raised the issue of the automobile sector. According to sources on both sides, a top priority for the U.S. is to maintain a tariff of 25 percent on imports of Korean pickup trucks and vans, which the existing deal would phase out from 2019. South Korea has also been criticized as discriminating against imports with a range of non-tariff barriers. The report goes on saying that the two South Korean car makers, Hyundai and Kia, also believe that Washington will push for increasing the current 25,000-vehicle per U.S. car maker shipment to South Korea limit that can enter the country without meeting their domestic industry regulations. Another source said that the U.S. is interested in South Korea easing its vehicle emissions targets which are viewed as discriminating against vehicles made in the United States. +++
+++ Alabama will be the site of a new 1.6 billion dollar TOYOTA and Mazda auto plant, a victory for President Donald Trump who had prodded manufacturers to build new U.S. facilities and threatened tariffs on foreign production, sources said. The plant, which will employ up to 4,000 people and produce about 300,000 vehicles a year, will be located in Huntsville, Alabama, and is a boon for the state, where Toyota has a large engine plant and an existing network of automotive suppliers. A formal announcement by company and state officials is expected on Wednesday in Montgomery, sources briefed on the matter said. The new plant (in a state Trump won by 28 points in 2016) could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs. The companies said they expect the plant to open in 2021. Trump tweeted in March he wanted “new plants to be built here for cars sold here”. The White House did not immediately comment. The announcement also comes at a time of declining U.S. auto industry sales, so it could exacerbate overcapacity and add pressure to cut prices. U.S. new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018. Details of an anticipated tax and incentive package for the investment were not yet known. It has been reported the companies sought at least $1 billion in incentives. A Toyota spokesman declined to comment, except to say an announcement was expected soon. A Mazda spokeswoman also declined to comment. In recent months, the companies had narrowed their choices down to sites in Alabama and North Carolina. Local media last month said the leading site under consideration was in northern Alabama’s Limestone County, near Toyota’s large engine plant in Huntsville. In September Toyota announced a 106 million dollar technology upgrade for the Huntsville plant. A Chamber of Commerce of Huntsville website for the “Huntsville Mega Site” touts the fact it has been “certified as development-ready”. The commerce chamber, local and state officials declined to comment on plans for the plant. A year ago, President-elect Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla for the U.S. market in Mexico. “Toyota said it will build a new plant in Baja, Mexico, to build Corolla cars for the U.S. No Way! Build plant in U.S. or pay big border tax”, Trump posted on Twitter in early 2017. Toyota and Mazda announced plans for a new plant in August. Toyota said it would shift production of Corollas from Canada to the new venture rather than in Guanajuato, and would build Tacoma pickups in Mexico instead. Mazda plans to build new a crossover at the plant. Trump praised the joint venture announcement, saying in August on Twitter: “Toyota & Mazda to build a new 1.6 billion dollar plant here in the U.S.A. and create 4.000 new American jobs. A great investment in American manufacturing!”. In October, Toyota said it would scale back investment in a planned plant in Mexico by 30 percent to 700 million dollar and cut planned annual capacity in half to 100,000 vehicles as it shuffles its production plans to meet market demands. Toyota has 10 U.S. plants in eight states in an arc running from West Virginia through Kentucky, Indiana, Alabama, Mississippi and Texas.Toyota and Mazda announced a capital alliance in August and are exploring joint development of technologies for the basic structure of competitive electric vehicles. Over the last 30 years Toyota, along with German and Asian automakers, has built a second auto industry in the United States, rivaling the operations of the Detroit Three automakers in size and employment, but with newer, and fewer unionized, plants. States covet auto assembly plants because they typically pay above-average wages and spin off jobs at suppliers and service companies. Southern U.S. states have the advantage of good transportation infrastructure, business-friendly regulators and generally anti-union politicians. Kristin Dziczek, a researcher the Center for Automotive Research in Michigan, said that Alabama in 2017 was tied for 5th among U.S. states in auto production, at 9 percent with Tennessee. It was behind Michigan at 19 percent; Indiana at 12 percent, Kentucky at 11 percent; and Ohio at 10 percent. “The impact of an auto assembly plant extends beyond its immediate economic impact, and that’s why states offer robust incentives”, said Dennis Cuneo, a site-selection consultant and former Toyota executive. “It creates a halo effect that in turn helps attract other projects”. Alabama spent an estimated 250 million dollar to woo Mercedes to put an auto plant in Tuscaloosa 2 decades ago. +++