+++ The arrest of AUDI boss Rupert Stadler was a “massive shock” for Volkswagen Group boss Herbert Diess, who described his colleague as a “problem solver”. Stadler has been in jail for 2 weeks, following an investigation on charges of fraud and misrepresentation as part of the Dieselgate emissions scandal. Diess told during an interview: “The arrest of a CEO of a major car brand – that’s never happened before”. In the days that followed reports that Stadler would not return to his post, even if his name was cleared during trial, Diess said the arrest “is hard to comprehend”. Audi has temporarily placed its sales and marketing boss, Bram Schot, at the helm. But a source said that the 55-year-old Stadler was not expected to return to the company, regardless of outcome. “Should the accusations of the state prosecutors prove to be true, then it’s a clear decision”, said Diess. Since his arrest, Stadler, who was in charge of Audi for 8 years, has since been placed on leave by Audi. “The accused was brought before the investigating judge, who ordered the execution of the pre-trial detention”, the Munich public prosecutor’s office said in a statement after Stadler’s arrest. As a reason for the arrest, the Munich public prosecutor’s office cited “evidence suppression”. It added: “We cannot comment on the substance of our background in the light of the ongoing investigations. For Stadler, the presumption of innocence continues to apply”. Stadler has continuously denied any wrongdoing in the Dieselgate scandal. Another Audi board member, Bernd Martens, was named as a key suspect by the Munich public prosecutor’s office on 30 May. German media reports suggested evidence obtained in the recent questioning of other former Audi officials link Stadler to possible diesel emissions manipulation from 2012 onwards. Stadler’s detention came after German police and members of the Munich public prosecutor’s office raided his private residence in Germany. +++
+++ Hyundai has flatly denied the latest rumor of a takeover bid for FIAT CHRYSLER Automobiles. An unnamed insider claimed Hyundai has formed a strategy to buy FCA at a discount, predicting the company’s share price will drop due to lack of new models, “mediocre technology” and failure to develop a deeper strategy for electric vehicles. Hyundai is said to be viewed as a more sensible suitor for FCA, providing electric powertrain technology and a better foot into the Korean market in return for FCA’s strength in trucks and other segments. A Hyundai spokesperson has dismissed the allegations, labeling the rumor “totally groundless”. +++
+++ FORD will not attend the 2019 Geneva Motor Show, becoming the second major manufacturer after Volvo to miss the Swiss event that’s traditionally been one of the highlights of the year for the automotive industry. Ford’s decision was made because the Geneva Show’s timing didn’t fit their models’ launch schedule, and therefore wouldn’t represent good value. “It costs a sizeable amount of money”, a Ford of Europe spokesman said. “If you’re not going make a return on the investment in terms of media attention or people on the stand, why do it?” Instead, the Blue Oval will host its own event in spring with an emphasis on new electrified models. The company will also skip the Paris Motor Show in October as it has in previous years, but 2019 will be the first year it misses the Geneva motor show. Ford’s planned ‘Go Further’ event will take place in Europe and will be similar to past events where it revealed models like the Mondeo, Mustang and Fiesta. The 2019 debuts include a yet-unnamed new model and will focus on hybrid and electrified cars. Ford is reportedly going to reveal its first mild-hybrid passenger model, as well as a plug-in hybrid version of the Transit. +++
+++ GENERAL MOTORS (GM) is looking for the best way to make its Cruise Automation division a very profitable business. GM is researching a potential public offering, spinning off Cruise Automation into a new company or listing a separate tracking stock reflective of its value. This research is reportedly in its very early stages and a final decision may not come for a couple of years. Beyond its work developing self-driving technologies for GM, Cruise Automation intends on launching a ride-hailing service next year. Founded by Kyle Vogt, Cruise is challenging Waymo for autonomous supremacy. In 2016, GM acquired Cruise for $581 million in cash when it was just a 50-person firm. Last month, SoftBank Vision Fund said it would invest $2.25 billion in Cruise Automation at an $11.5 billion valuation. This investment will see $900 million funneled into the company this year, while a further $1.35 billion will be invested when its autonomous vehicles are set for business use. In return for its investment, the fund will own 19.6 % of the stock. Cruise Automation has been aggressively testing its self-driving prototypes throughout the United States, particularly in San Francisco, and has even tested its cars without a safety driver behind the wheel. Last year, the company shot down claims from Tesla chief executive Elon Musk that the electric automaker could achieve Level 5 autonomy with only cameras and radars. Cruise Automation is developing LiDAR to fulfill its self-driving goals and, to that end, purchased LiDAR specialists Strobe last October. +++
+++ HONDA has pulled the plug on Asimo. But the technologies it’s developed for humanoid robot (one of the most advanced ever made) will live on. The story of Asimo dates back to 1986 when Honda opened its advanced research facility in the Saitama Prefecture, where it also started development on hydrogen fuel cells and the HondaJet aircraft. The advanced walking robot made its first public appearance in 2000, leading to a series of revisions that culminated in the seventh-generation robot in 2011. The current robot measures 1.3 meters tall and weighs 48 kg. And thanks to its advanced sensors and self-balancing capabilities, can walk almost like a human; even run at speeds of up to 9 km/h, jump, open a bottle, and pour a beverage. It’s an impressive piece of equipment, as this writer discovered upon a demonstration while touring the company’s world headquarters in Tokyo. With development stalled and no direct marketability on the horizon, however, Nikkei Asian Review reports that Honda has pulled the plug. However the Japanese industrial giant has, and intends to continue utilizing Asimo’s advancement in other applications. Not least of them is the development of self-driving cars which employ many of the sensors first developed for Asimo to enable autonomous vehicle operation. The company is also adapting Asimo’s walking capabilities to a mobility assistance device for the elderly and handicapped. Honda has also developed a lawn mower that can operate autonomously, even across uneven surfaces, and a self-balancing motorcycle. So while we may never see further iterations of Asimo coming out of Honda’s R&D departments, we won’t be surprised to see more of its technologies working their way into future products. +++
+++ The new HYUNDAI Santa Fe is to gain hybrid and plug-in hybrid powertrains. As part of an ongoing electrification plan, the 2 additional engine variants are expected to be introduced within the next 18 months. Dutch customers are so far confirmed to be offered only the 2.2-litre diesel engine, but it’s likely that both electrified variants will make it to the showrooms upon the new model’s arrival. Other markets get more engine options, including a a 235 hp 2.0-litre petrol. Hyundai plans a range of 16 electrified cars by 2025 under its Hyundai and Kia brands, with the most recently announced being a 48V hybrid version of the Tucson. The mild hybrid Santa Fe is expected to share its powertrain with that car. This outputs 184 hp from a 2.0-litre CRDi engine and 16 hp from its 48V system, which is supplied by a 0.44 kWh battery. Details of the Santa Fe’s plug-in powertrain are as yet unknown, but it’s unlikely that it’ll be the same system as is used on the Hyundai Ioniq Plug-in Hybrid, given the size difference between the two models. If an existing powertrain is used, it’s likely to be the 2.0-litre petrol from the Kia Optima PHEV. Industry trends suggest that the plug-in hybrid Santa Fe will be able to achieve an electric-only range of around 50 kilometres. The Optima PHEV, Niro PHEV and Ioniq Plug-in Hybrid are the plug-ins currently produced by Hyundai and Kia, while the Ioniq Hybrid and 48V-assisted Tucson and Niro are the non-plug-in hybrids. +++
+++ KIA is developing a “more agile and playful” Ceed GT that will have some characteristics of the Hyundai i30N. It’s to be launched in 2019, likely with the shooting brake bodystyle that has just been seen testing. Kia’s European marketing boss, Artur Martins, told earlier this year that the GT model will be tested by a team led by Albert Biermann, the chassis guru who headed development of the i30N. The car will be part-developed at the Nürburgring, where Kia parent company the Hyundai Motor Group has a permanent test centre. “With Albert’s involvement, you will see similar handling and balance, although not at that level of performance”, Martins said. “It will be more fun than the old car, but it won’t be as focused as the i30N”. Although the rest of the Ceed range shares its engines with the Hyundai i30 line-up, those being petrol engines of between 1.0 and 1.4 litres and a 1.6-litre diesel, the hottest Ceed isn’t guaranteed to use the N-division-tuned 2.0-litre petrol engine, which produces up to 275 hp in the i30N. Group powertrain boss Michael Winkler told that while he can’t confirm what capacity the GT’s engine will be at this stage, the GT will not be “as extreme” as the i30N. This suggests it could use a detuned version of the 2.0-litre four-pot or even feature a performance-oriented version of the Ceed’s upcoming 48V mild-hybrid powertrain. As such, power is likely to remain close to 250 hp. While that would leave it trailing in the wake of hardcore hot hatches such as the 280 hp Renault Mégane RS and upcoming new Ford Focus ST, which will have about the same output, it suggests the top Ceed will be engineered with a more forgiving personality than the hard-edged i30N. As such, it will have its sights set on the highly talented Volkswagen Golf GTI. Expect this trend to continue into the car’s design, ensuring a more restrained look than the i30N. A spotted test car is running with 18 inch wheels, a roof spoiler and new front grille to form the bulk of the GT’s exterior parts. It’s a shooting brake, a bodystyle which is yet to be revealed (and was previewed by last year’s Proceed shooting brake concept), suggesting the GT model will be launched with the sleeker design. The Ceed hatchback is also due to be given a GT variant, while the Ceed SW could inherit the running gear to provide customers with the option of a hot estate. The following Ceed SUV, however, could follow a slightly different path and be offered with GT-Line bodywork but not gain the more potent firepower. This is the route taken by its larger SUV sibling, the Sportage, which has a GT-Line variant as its top model but sticks with the standard range of engines. +++
+++ The LEXUS CT could live on despite the introduction of the similarly sized UX cross-over later this year, the firm’s European boss has said. Widespread reports had suggested that Lexus’s launch into the booming small SUV market would render the ageing CT redundant, but Pascal Ruch told: “The size of the segment the CT competes in is still very significant. At the moment, I see the UX as delivering additional volume, not necessarily replacing the CT. We’ve just updated the CT, so we have at least 2 more years of sales to make an evaluation from. There is no rush to make a decision”. The CT is the oldest car in Lexus’s range, and accounts for 10,000 of its 75,000 annual sales in Europe. However, Ruch highlighted its role at bringing new customers to Lexus. He said: “Between 70 % and 75 % of buyers are new to Lexus, and that is a great opportunity for us to demonstrate our qualities to customers. Of course I hope the UX can deliver similar results, but they don’t have to be at the expense of the CT”. +++
+++ MERCEDES continues to expand the range of the recently updated C-Class range with additional engine options, including the new entry-level diesel 180d model. The cheaper diesel variant of the C-Class family replaces the old Renault-sourced powerplant with a new 1.6-liter four-cylinder that’s been developed entirely by Mercedes. The new engine belongs to the latest OM654 family of diesel units, featuring reduced bore and stroke compared to the 2.0-liter version but keeping all the innovations of its bigger sibling, such as the 4th-generation common-rail injection system and aluminum engine block. The 1.6-liter diesel produces 122 hp between 3,200 and 4,600 rpm and 300 Nm between 1,400 and 2,800 rpm, and is available only in conjunction with the 9-speed 9G-Tronic automatic transmission. Mercedes says the base C 180d Saloon is capable of a 0-100km/h sprint in 9.4 seconds and has a top speed of 207 km/h. CO2 emissions are 112 g/km. Mercedes will offer a more powerful 160 hp version of the same 1.6-liter diesel engine with a 6-speed manual transmission in the C 200d. What’s confusing in the fact that automatic versions of the C 200d get a 150 hp 2.0-liter engine. Same badge, different engine. Overall, Mercedes reckons that there are more than 50 variants of the new C-Class available in Europe, namely 30 saloons and estates and 21 Coupes and Cabriolets. +++
+++ Introduced last fall, the second-generation NISSAN Leaf promised to offer more range and faster charging than its predecessor. It keeps its promise on paper, but several owners in England say it doesn’t do as well in real-life applications. This is the problematic scenario: an owner charges the Leaf at home, presumably overnight, and sets off on a long drive that exceeds the car’s range. He stops at a service station to plug the car into a quick charger, which gives the battery an 80 % charge in 40 to 60 minutes. So far, so good. The next time he stops, an 80 % charge takes considerably longer. Some owners told they waited on the side of the road for 2,5 hours while electricity trickled into the battery pack. Nissan told charging times can vary. Owners argue the company didn’t make that clear enough in its promotional material. “External ambient temperature, the type of driving you’ve been doing beforehand, and the heat you put into the battery if you’ve been doing successive charges can impact the timing”, a Nissan spokesman explained. He added the car sometimes decides to slow a charge to preserve the battery’s longevity, and pointed out there are times when the charger itself is to blame. The Japanese firm denies allegations of problems with the charging system, however, and it stresses it didn’t mislead buyers. +++
+++ The new RENAULT Clio will distinguish itself from rivals by being one of the most technologically advanced models in its class when it arrives next year and it’ll also inherit the sleek design language of its bigger sibling, the Mégane. The push for more tech and a premium look is part of a bid by the French car maker to keep its supermini at the forefront of the sector, especially in the face of increasing competition from compact SUVs, to which traditional small cars are starting to lose out. Now in the final stages of prototype testing, the 5th generation Clio is set to marry a honed exterior look with a dramatic new interior dominated by a Tesla-style infotainment screen. It will also be capable of semi-autonomous driving. The exterior styling will be evolutionary, keeping elements such as rear door handles hidden in the door frames, albeit with a more grown-up look in line with the Mégane. It’s also expected to take design cues from the Symbioz concept car, shown last year. The interior will echo the Mégane, taking a leap away from traditional hardware to a large digital dashboard and tablet-style infotainment screen. This will set it apart from rivals such as the Ford Fiesta and Volkswagen Polo, which have smaller, more traditional touchscreens. The new Clio is built on the CMF-B platform, an updated version of that used on the existing model and shared with the Nissan Micra. It will use 1.0-litre and 1.3-litre petrol engines, the latter developed with Mercedes, as well as a 1.5-litre diesel with up to 115 hp. A 48V mild hybrid 1.5 dCi, badged Eco2, is planned but won’t be available at launch. A plug-in model is understood to be due in 2020. Last year, Renault boss Carlos Ghosn announced the French car maker would launch 8 electric vehicles in the next 5 years. However, a fully electric variant of the Clio is not expected to be one of them. That’s because Renault executives are worried it would steal sales from its existing Zoe, the best-selling electric car in Europe in 2017. There will be a new Clio RS, though. The hot range-topper will be unveiled in 2020. The current model is in run-out, with Renault recently releasing the limited-edition RS18 as its swansong before the next generation arrives. The next Clio RS is likely to adopt the 1.8-litre turbo petrol engine from the new Mégane RS, but with less power. Volkswagen followed a similar strategy by using a detuned Golf GTI engine in the recently launched Polo GTI. The other key advancement is autonomous technology, not often found in this segment. The Clio is due to feature Level 1 and 2 autonomy, shared with vehicles from partner brand Nissan. Level 1 means it will have the latest safety systems such as adaptive cruise control and lane-keeping assist, increasingly popular in larger cars, but Level 2 is the biggest step change: the Clio will have hands-off capability (although using it remains illegal), being able to park and keep in lane by itself. +++
+++ ROLLS-ROYCE boss Torsten Müller-Ötvös has said the firm’s model line-up is now complete following the launch of the Cullinan. The British firm’s first SUV is its 5th model, alongside the Phantom, Ghost, Wraith and Dawn. But while other manufacturers are expanding their range of SUVs, Müller-Ötvös said there was no demand among the brand’s ‘ultra-luxury’ buyers. Asked whether Rolls would consider swelling its line-up with an SUV smaller than the Cullinan, Müller-Ötvös told: “No, definitely not. You need to go with the flow, so for that reason, I’d never say never, never, never. But we don’t currently have any plans to expand our model line-up any further. “Our strategy is definitely to maintain our high-end price position and not move the brand just for volume sake into lower-price segments”. Müller-Ötvös said early sales of the Cullinan have exceeded expectations. The British firm showed the ultra-luxury off-roader to customers ahead of its official launch recently and he called customer reaction “brilliant”. The Cullinan is set to face opposition in the ultra-luxury SUV segment from Aston Martin’s revived Lagonda brand. It will relaunch in 2021 with an SUV previewed in a concept sketch. Asked about that model, Müller-Ötvös said: “It’s just a sketch. I can’t say anything more. Cullinan is real”. +++
+++ SKODA plans to produce a small SUV in India starting in 2020, the Czech automaker said. The move is part of a 1 billion euro investment by Skoda parent Volkswagen Group to revive sales in one of the world’s fastest-growing automobile markets. VW Group also plans to expand its manufacturing unit in Aurangabad, western India, and set up a new engineering center to help raise its local market share to 5 % by 2025. Skoda’s expansion comes as Wolfsburg-based VW Group embarks on a decentralization drive aimed at handing responsibility for managing different global regions to its various brands. Skoda was given responsibility for India and Russia late last month. Skoda’s vehicle sales in India rose 30 % in 2017, powered by demand for the Rapid and Kodiaq. “This year’s sales figures show that customers are very excited about our models. It is also true, however, that the Volkswagen Group has struggled in recent years to achieve its growth targets in India”, Skoda CEO Bernhard Maier told reporters. Its new cars will use an heavily localized version of VW Group’s MQB A0 vehicle platform, which will adhere to the country’s stricter emission and safety standards that take effect in 2020. About 90 % of each new Skoda vehicle will be produced locally, Maier said, adding that the Czech brand would also explore the possibility of exporting Indian-made cars. “We think VW Group may focus on technology and electric cars and try to hold on to their market share in developed markets, while Skoda may become the front runner for mass products in emerging markets”, said Puneet Gupta, associate director of automotive forecasting at research firm IHS Markit. Though Skoda and India’s Tata Motors scrapped a proposed partnership last August to develop cars for emerging markets, the company remains open to tie-ups, Maier said. +++
+++ A tense and short-tempered Chief Executive Elon Musk barked at engineers on the Fremont, California assembly line. TESLA pulled workers from other departments to keep pumping out the Model 3, disrupting production of the Model S and X lines. And weekend shifts were mandatory. Tesla pulled out all the stops to meet its goal of making 5,000 Model 3s in a week, according to employees. Whether Tesla can do it week in and week out (and without relying on overtime and extra hands) is another question, and one that weighed on investors, as shares slumped 2.3 %. Leading up to the production milestone, Musk paced the Model 3 line, snapping at his engineers when the around-the-clock production slowed or stopped due to problems with robots, one worker said. Tesla built a new line in just 2 weeks in a huge tent outside the main factory, an unprecedented move in an industry that takes years to plan out its assembly lines, and said the tented production area accounted for 20 % of the Model 3s produced last week. “They were borrowing people from our line all day to cover their Model 3 breaks so the line would continue to move”, said a Model S worker. Because of the focus on the Model 3, the S line is about 800 cars behind, the worker said. “They’ve been throwing Model 3s ahead of the S to get painted to try to assure that they make their goal of 5,000”, the worker said. “The paint department can’t handle the volume”. Disruption of the Model S and X lines could threaten Tesla’s target of building 100,000 of those vehicles in 2018. Tesla built 49,489 of those cars in the first half of this year. Asked about the potential S and X impact, Tesla said it also produced 1,913 of those vehicles during the last week of the quarter along with its Model 3s. Tesla said it built a total of 28,578 Model 3s in the second quarter, and 40,989 since production began last July. Last week’s big push also brought a rewrite of the employee attendance policy. After mandatory weekend shifts were assigned, two workers said, Tesla rescinded a policy promising workers at least one week’s notice before weekend work. “The manager and supervisor are verbally going around and saying: ‘If you don’t come in, you’ll be written up’ ”, one of the workers told. Some employees are worried the frenetic pace plus long hours could burn out workers. One employee said they were told to keep working until they met their daily production mark, not when their shifts ended. “They said starting tomorrow be prepared to work up to 12 hours”, said the Model S employee. “It’s gonna be basically 12 hours from now on and I’ve got a feeling it’s gonna be 6 days a week”. To make its number, Tesla was willing to “spend any kind of money”, a Gigafactory worker said, pointing to the new battery assembly-line flown in from Europe via cargo planes to the Gigafactory in May. Tesla said that some of its Model 3 production would be on break as part of the July 4 holiday, with production to resume on Thursday. Tesla plans to build 6,000 Model 3s per week by August. But the worker told to expect longer shifts warned that pushing assembly-line workers too hard could backfire. “He (Musk) is gonna go through an awful lot of people because people are gonna start getting hurt left and right” by the fast-moving assembly line, the worker said. “There’s only so fast a person can move”. +++