+++ Half of U.S. adults think automated vehicles are more dangerous than traditional vehicles operated by people, while nearly two-thirds said they would not buy a fully AUTONOMOUS VEHICLES , according to a new Reuters/Ipsos opinion poll. In the same poll, about 63 % of those who responded said they would not pay more to have a self-driving feature on their vehicle, and 41 % of the rest said they would not pay more than $2,000. The poll results outline the challenges that face carmakers, delivery companies, technology companies and ride services operators such as Uber and Lyft. All are plowing capital into developing self-driving vehicles and related hardware. Developers of the technology are making progress, but polls indicate the industry’s efforts to build public trust and commercial demand lag behind. The findings are similar to those in a 2018 Reuters/Ipsos poll. They are consistent with results in surveys by Pew Research Center, the American Automobile Association and others. In March 2018, after the 2018 Reuters/Ipsos poll, an Uber vehicle operating in self-driving mode struck and killed a pedestrian in Arizona. Relatively few U.S. residents have seen or ridden in a self-driving vehicle, and experts said suspicion of unknown technology can give way to acceptance once it becomes more familiar. “People are comfortable with things they know”, said investor Chris Thomas, co-founder of Fontinalis Partners and Detroit Mobility Lab. “When everybody understands the game-changing attributes of automated vehicles, how they can give you back all that time to read or work or sleep, they will start to ask about the value of that recaptured time”. For companies investing in autonomous vehicles, public mistrust and the unwillingness to pay for self-driving systems are an increasingly urgent problem. But widespread deployment of fully self-driving vehicles is some years away, industry officials and experts said. Alphabet’s Waymo unit has deployed a small fleet of self-driving vans to provide rides for customers in Arizona and other companies have self-driving vehicles on public streets in test fleets. “At the moment, those responses are largely based on zero knowledge and zero experience, so it’s mostly a visceral reaction to something they read about, like the Uber crash in Arizona”, said Dan Sperling, director of the Institute of Transportation Studies at the University of California and the author of several books on future transportation. Autonomous vehicle companies have been trying for more than 2 years to get the U.S. Congress to enact legislation that would give a regulatory green light to self-driving cars. So far, opposition has bottled up the industry friendly bills. The National Highway Traffic Safety Administration meanwhile has yet to act on proposals to exempt autonomous vehicles from conventional vehicle safety standards. Two-thirds of survey respondents said self-driving cars should be held to higher government safety standards than traditional vehicles driven by humans. “Somebody needs to be held accountable”, said survey respondent Carla Ross, 62, a teacher from Norfolk, Virginia. “Those cars shouldn’t even go on the road until they can guarantee a certain percentage of safety”. The poll’s findings that most consumers would not pay for self-driving vehicle capability underscores concerns within the vehicle industry about the high costs of the technology, such as lidar sensors and high-powered onboard computers. Lidar is similar to radar but uses laser light instead of radio waves. “I’m concerned that even when we get the technology absolutely right, we will not have the business”, said investor and corporate adviser Evangelos Simoudis, managing director of Synapse Partners, which invests in autonomous vehicle technology startups. Self-driving expert Bryant Walker Smith, a law professor at the University of South Carolina, said a number of companies “don’t actually want to sell people these cars: they want to rent us these services. They want us to pay every month, every trip”. For many Americans, “$2,000 is a lot of money”, he said. “If you’d asked people if they’d pay $15,000 for an advanced safety package or even $10,000 for a luxury trim package, the answer in a lot of cases is going to be no”. The challenges of turning over critical safety systems to robots are now a central issue in debate over how regulators should respond to a pair of deadly crashes involving Boeing 737 MAX airliners. Investigators trying to determine the causes of crashes in Indonesia and Ethiopia are focusing on evidence that an automated flight control system on the jets put the planes into nose dives, and pilots were unable to override the systems. “If there’s one airplane crash a year, it creates huge backlash, and airplanes are far, far safer than cars”. +++
+++ Microsoft and BMW launched an initiative to create an Open Manufacturing Platform that seeks to stimulate innovation and accelerate the development of ‘smart’ factories. It’s the second alliance of its kind in a week after Volkswagen and Amazon Web Services teamed up to connect the German car maker’s 122 group plants to improve production systems and processes. Both deals reflect a push by ‘hyperscale’ cloud computing providers to capture and manage the terabytes of data thrown off by the network of connected devices such as robots and sensors that make up the so-called Internet of Things (IoT). “Microsoft is joining forces with BMW to transform digital production efficiency across the industry”, Scott Guthrie, executive vice president, Microsoft Cloud + AI Group, said. “Our commitment to building an open community will create new opportunities for collaboration across the entire manufacturing value chain”. The platform will be built on the Microsoft Azure IIoT cloud platform, which BMW already uses. Its reference architecture will be based on open-source standards, an approach designed to encourage other partners to join in. Microsoft, in a statement, said the goal was to have an initial set of four to six partners in place by the end of 2019 and a minimum of 15 initial use cases deployed in a production setting. BMW already has 3,000 machines, robots and autonomous transport systems connected with its own IIoT platform that is built on Microsoft Azure. It said it would contribute some of its initial use cases to the project. +++
+++ Ford has warned it will reconsider its UK investments if Members of Parliament (MPs) cannot agree a BREXIT deal that guarantees a smooth departure from the EU. The US car manufacturer’s Europe chairman Steven Armstrong warned of the potentially disastrous effects of a no-deal Brexit on Ford and the wider industry. Such a scenario would mean Ford “will have to consider seriously the long-term future of our investments in the country”, Armstrong told. “We’ve been very consistent since the referendum that a hard Brexit, a no-deal Brexit, would be a disaster for the automotive industry in the UK and within that of course I count Ford”, Armstrong told. “So anything that puts tariffs or friction at the borders in place would be a significant inhibitor to our business. We’ve been very clear in saying that could cost us up to a billion dollars a year”. The latest stark warning from Britain’s car industry came after MPs again failed to agree on a way forward for the Brexit process, voting down a series of alternatives to the prime minister’s deal. Armstrong said Ford had spent tens of millions of dollars preparing for a no-deal Brexit. “The best case for me would be that that money is actually wasted because we actually reach a deal”, Armstrong said. “So I would encourage all parties concerned to figure out how to get us to a deal that guarantees frictionless trade because otherwise we will have to consider seriously the long-term future of our investments in the country”. The company has already laid out plans to cut thousands of jobs across Europe, including the UK, as it tries to boost profitability in a region where it has underperformed for years. The bulk of the redundancies are expected to affect Germany. “Brexit is not the reason for that, but it clearly is another factor that if we were to get a hard Brexit we would have to think seriously about what further steps we’d have to take”, Armstrong said. Last week the industry trade body said car production in the UK fell by 15.3 per cent in the year to February, the 9th consecutive month of falls. Manufacturers built 123,203 cars in the UK over 12 months, down from 145,518 a year ago. Declining demand in the UK and in key European and Asian export markets has hit carmakers hard, while continued uncertainty around Brexit is hurting investment in the sector. Mike Hawes, SMMT chief executive, said the figures should provide additional impetus for MPs to avert a hard Brexit. “The 9th month of decline for UK car production should be a wake-up call for anyone who thinks this industry, already challenged by international trade hostilities, declining markets and technological disruption, could survive a ‘no deal’ Brexit without serious damage”, he said. +++
+++ BUGATTI has decided the form its second model to sit alongside the Chiron will take, but the decision on whether or not it will make production now rests with the Volkswagen Group. Company boss Stephan Winkelmann hasn’t confirmed the model type, but it will be usable every day and bring a new bodystyle to the brand (likely therefore to be a high performance crossover). Winkelmann was in charge of Lamborghini when it created the Urus, so has experience in diversifying performance brands in this direction. Winkelmann told: “The brand is ready for the second car, but it’s not me to decide”. The second model would have to be “a real Bugatti in the segment, or create one” and be “a reference for other manufacturers”. The new Bugatti is likely to use electric power, according to Winkelmann, who said: “This technology will be in our reach”. When asked if it would use solid-state batteries that provide greater energy density to offer the kind of performance a Bugatti would demand, he added: “You have to create a car that’s flexible and can be adapted to the latest technology”. Winkelmann expects battery technology to improve over the next couple of years to become viable for a Bugatti, and said of customers: “There will be an acceptance of electrification now the first cars are coming”. The model would not detract from the Chiron, which would remain Bugatti’s ‘halo’ model and flagship. “There is a disconnection from one to the other. It will be below the Chiron but on top of every other model”, added Winkelmann, confirming only that it would cost less than the Chiron’s €3 million price. Any model yet to be signed off will still be several years from production, the earliest realistic launch date being 2022. Asked when Bugatti would be ready to go with the project, Winkelmann said: “Immediately. I’m ready. We’ve worked a lot, we want a second model. There is no pressure; there is such high demand from brands in the group. Let’s see”. Adding a new model line to a range, rather than replacing an existing one, is a tougher process in the VW Group, said Winkelmann. “As long as you exchange models, it’s easy”, he explained. “If you add, it’s tougher”. Bugatti produced a fastback concept back in 2009, but the firm is understood to be unconvinced that a saloon-style vehicle would be as appealing as a sleek crossover. Bugatti hasn’t ruled out building more one-offs like the €10 million La Voiture Noire shown at the recent Geneva motor show. That 1500 hp car is based on the Chiron but heavily reworked with entirely new bodywork and an extended wheelbase. Asked if the firm could produce more bespoke machines, Bugatti boss Stephan Winkelmann said: “There are more and more customers asking for one”. He also said the brand was conscious of doing too many special editions of the Chiron, as it did with the Veyron, as customers “have to value what they buy” and not find the core product to be diluted. Bugatti has delivered around 150 of the 500 Chirons it will build, with the production run due to last for 5 more years. As for whether the Chiron’s replacement would use electrification or retain its mighty W16 engine, Winkelmann said: “We have some time but I wouldn’t go a half-step. It’ll be full electric or a normal combustion engine”. +++
+++ EUROPEAN UNION governments are struggling to reach consensus on a mandate to begin trade talks with the U.S., risking a delay that would further provoke Donald Trump’s anger after the bloc’s refusal to include agriculture in the negotiations. At a meeting of EU ambassadors in Brussels, France is expected to resist giving the European Commission the green light to start negotiations to eliminate industrial tariffs between the regions, according to 2 officials familiar with the matter, who asked not to be named because the talks are private. Failure to get France on board would mean the EU’s executive arm will not be given a mandate to negotiate. The main sticking points include the role of climate and environment in the mandate given the U.S. decision to withdraw from the Paris climate accord and a clarification of what this negotiation would mean for the shelved Transatlantic Trade and Investment Partnership, according to the officials. A draft mandate prepared ahead of the meeting of ambassadors reiterates that the EU seeks trade accords only with countries that have signed up to the Paris agreement against climate change, even though the U.S. has pulled out. An escalation of tensions with the U.S. would come at a very bad time for Europe’s economy, which is already struggling amid a global slowdown. Germany’s car industry is already facing a tough environment of tighter emissions rules and weaker demand, and surveys show manufacturing in the euro area is shrinking at the fastest pace in 6 years. The EU has been trying to kick start trade deliberations with the U.S. in a bid to show president Trump progress in enacting a political accord that he reached with commission president Jean-Claude Juncker in July. That agreement helped put on hold the U.S. threat of tariffs on European cars and auto parts. A 25 % U.S. levy on foreign cars would add €10,000 to the sticker price of European vehicles imported into the country, according to the Commission, the EU’s executive arm. The EU exported about €58 billion worth of cars and auto parts to the U.S. in 2017. Washington has shown frustration over the lack of progress since, with U.S. Ambassador to the EU Gordon Sondland saying in a February interview that “so long as the EU leadership plays the delay game the more we will have to use leverage to realign the relationship”. +++
+++ FORD will begin the extensive electrification of its European range next year with a raft of new models, including mild hybrid versions of the Fiesta and Focus, a new plug-in hybrid Explorer, a fully electric Transit van and the launch of its Mustang-inspired Mach 1 full-electric performance SUV. The string of electrified models is part of Ford’s major overhaul of its struggling European business. Starting with the new Kuga, the firm will offer a mild hybrid, hybrid, plug-in hybrid or fully electric version of every new model. Ford’s European engineering boss, Joerg Beyer, said the “nuanced powertrain strategy” was necessary because “every customer’s circumstances are different”. The Mach 1 electric SUV has been previously confirmed by Ford, but the firm has revealed it will launch next year with a WLTP-certified range of 600 kilometres. A new 7-seat Explorer will return the nameplate to Europe with a plug-in hybrid powertrain, featuring a 3.0-litre V6 petrol engine mated to an electric motor to offer 450 hp and 830 Nm with an electric-only range of around 40 kilometres. The Fiesta and Focus will gain mild hybrid versions, using a 48V belt-driven start motor mated to the 1.0-litre Ecoboost petrol engine, from next year. Those models join the Mondeo, which is already offered as a plug-in hybrid. As part of its European restructuring plan, Ford is putting a major focus on its commercial vehicle business. It is developing a fully electric Transit, due to launch in 2021, with a plug-in hybrid version launching this year. Ford will also launch a Tourneo Custom plug-in hybrid MPV later this year. The 8-seater’s front wheels are driven purely by an electric motor, with a 1.0-litre Ecoboost petrol engine serving as a range extender. Ford claims a zero-emission driving range of up to 50 kilometres. The upcoming Mach 1 electric crossover will be the brand’s first all-new battery vehicle, a “performance utility vehicle” that Ford says is “inspired” by the Mustang. It is set to debut later this year. The Mach 1, named in reference to its Mustang-derived styling features, has been confirmed as a globally engineered model, with European deliveries starting in 2020. Ford is also working on an electric crossover, codenamed CX430, which will be built on the C2 platform used for the new Focus. That machine has been in Ford’s product plan for several years. The CX430 will be additional to the Kuga and, since it is based on the front-wheel-drive C2 platform, it is expected to be conventional hatchback-like, with a slightly raised driving position. Ford has identified ‘white paper’ models like the CX430 to replace saloons and hatches in its US line-up. Further crossovers with Mustang design cues and front-drive chassis are a strong possibility because they combine “the best attributes of cars and utilities, such as high ride height, space and versatility”. If the vehicles are sized appropriately, European sales are likely. Ford’s push into EVs followed news that Ford is dropping the Fiesta, Focus, Fusion (Mondeo) and Taurus from its North American line-up. The end of the Fiesta in the US had been rumoured for some time, because fuel prices have dropped and the economy has recovered, allowing US buyers to return to their preferred larger vehicles. Decisions on the replacements for the Fusion and Taurus have been pending for a couple of years too. Ford’s new CEO, Jim Hackett, has acted decisively and made the announcement at a financial conference in the US, momentously ending Ford’s 110-year presence in the US passenger saloon market. “We are committed to taking the appropriate actions to drive profitable growth and maximise the returns of our business over the long term”, said Hackett. Analysts said Ford had previously signalled that the mix of car models in its range was forecast to drop to just 10 % in the US, leaving 90 % of its sales as SUVs and pickups. “This pull back is really just an admission of the stark North American market reality, especially for American brands”, said IHS Markit analyst Colin Couchman. “Buyers keep shifting to SUVs and crossovers. ‘Big-three’ sedan sales have been very dependent on poor-quality fleet sales”. Ford US rivals Chrysler and Dodge have taken similar action under Fiat ownership, killing the mid-sized 200 and Dart saloons and instead investing in Jeep SUVs and Ram pick-ups. Between them, Chrysler and Dodge sell just 2 saloons (full-sized rear-wheel-drive platform twins): the 300 and Charger. The end of the Fusion (Mondeo) and Taurus can also be seen in the context of a drive to simplify and reduce Ford’s global platforms to just 5. Currently, it has 11. When Alan Mulally took over as CEO in 2006, it was 17. In the future, Ford strategy will revolve around an emerging-markets small-car platform (Ka+), the C2 (Focus), a mid-sized SUV platform (Explorer), an electric car platform (Mach 1) and full-sized pickup platform (F-Series). At the key decision-making moment in 2021, Ford’s SUV sales are forecast by IHS Markit to have risen to nearly 400,000 units. That is key production volume for overall planning purposes but, in the decade from 2011 to 2021, Ford Europe’s ratio of hatchback to SUV sales will have moved from 10:1 in favour of hatchbacks to just about an equal split of 1:1, reflecting the huge increase in popularity of SUVs. While Ford is betting on its upcoming electric car, it’s also bringing back a famous name, the Bronco, to reinvigorate its SUV line-up. The original Bronco arrived in 1966 and become an iconic model for Ford but was withdrawn in 1996. The last we saw of the Bronco was a concept shown in 2004. But last year, Ford said the name would return on a global SUV in 2020. It will take on the Jeep Compass and be more rugged than Ford’s current mainstream SUVs as the firm bids to reclaim the off-road market. +++
+++ Ousted Nissan boss Carlos GHOSN ’s sudden appearance on Twitter was a surprise move by the businessman that perplexed people and sent journalists scrambling, and not for the first time. The first tweet from the @carlosghosn account on the social network read, “I’m getting ready to tell the truth about what’s happening. Press conference on Thursday, April 11”. It did not specify a time or place. Featuring a photo of a smiling, grey-haired Ghosn standing in front of a tree with seasonal cherry blossoms, the account initially lacked the blue tick mark to show it had been verified by the social network. That left journalists unsure of its authenticity, particularly as the conditions of Ghosn’s $9 million bail preclude him from using the internet. 40 minutes later, when the blue tick appeared, the tweet swept across social media and the account’s followers swelled to almost 20,000, from just a handful earlier. Some of the replies appeared sympathetic to Ghosn, with others carrying photos of his now-famous exit from a Tokyo detention center last month. “Stood right alongside you with #GiveGhosnBail. Looking forward to hearing your side”, wrote one Twitter user with the name @highmileage. Ghosn had also caught media off guard when he disguised himself in a workman’s uniform, cap and face mask to try and give waiting reporters the slip on leaving the detention center after his release on bail. The architect of the Nissan and Renault global alliance was then pursued by media as he rode away in a small work van, a Suzuki, topped with a ladder. Ghosn’s dramatic fall from grace began with his arrest in November after getting off a private plane at Tokyo’s Haneda Airport. He has since been charged with financial misconduct and aggravated breach of trust. Tokyo prosecutors will soon decide whether to prosecute Ghosn on further charges. A further arrest could jeopardize the planned news conference. It remains unclear if Ghosn sent the tweet or it was sent on his behalf. His bail conditions allow him to access a computer at his lawyer’s office but forbid him to use the internet. +++
+++ In over 15 years of writing about cars, I’ve enjoyed watching the rise of Korean sister brands HYUNDAI and Kia more than most. And having just spent a week in Korea on World Car Awards duties, I’ve seen how these already-major players plan to up their game even further. Part of the week has been spent driving brilliant new cars like the new Kia e-Soul. But I’ve also been talking to the management team about changes in the company resulting from Euisun Chung’s ascension to top spot in place of his father, M.K. Chung. There are little things that have already changed, such as a more relaxed dress code. But Euisun Chung has brought about a new focus to a business that had already developed into one of the world’s automotive powerhouses. M. K. Chung’s leadership, described as visionary by the group’s design chief Luc Donckerwolke, brought in the likes of Donckerwolke from Bentley, his predecessor Peter Schreyer from Audi and engineering guru Albert Biermann from BMW. But he also had the foresight to make sure the Hyundai group makes its own steel and even manufactures its own headlights and screens. Now Donckerwolke and his teams are being encouraged to make their brands stand out in a way they haven’t before, and with a clear distinction between them. “Genesis is haute couture, Hyundai is prêt-à-porter and Kia is cool street wear”, Donckerwolke told me. Got it. Light signatures are a big part in that story (and that’s a lot easier when you own the supplier). “We’ve done dots, lines and shapes”, he said. “Now we want to do volume”. Without giving too much away, some of the designs you’ll see soon across all 3 brands are out of this world and will really stand out in a crowded market. And it’s all backed up by innovative engineering, too. Watching Hyundai, Kia and Genesis change in the next few years will be fascinating. Their new-found freedom and confidence is great for buyers, and worrying for rivals. +++
+++ INFINITI will reveal an electrified sports saloon concept at the 2019 Shanghai Auto Show. Its intentions are 3-fold: it will preview an upcoming production model, as well as the brand’s latest design language and the firm’s newest flexible architecture, specially designed to accommodate electrified powertrains. The new design language is planned for use in the firm’s future electrified range, with the manufacturer claiming it has been influenced by modern, minimalist Japanese architecture and art. Much like the 2018 Q Inspiration concept, the Qs Inspiration will feature a spacious, clutter-free interior and crisp exterior styling. The Japanese firm tells us the interior of its new concept will be separated into 2 sections: a driver-focused cockpit and a “relaxed passenger zone”, which supposedly makes the most of the car’s generous proportions. Infiniti says it has drawn inspiration from its 1989 Q45 saloon, so expect a long wheelbase, plenty of rear legroom and deeply-padded back seats. Details on the Qs Inspiration’s powertrain are still closely guarded. Infiniti’s chairman, Christian Meunier, said: “Electrification creates a range of new possibilities for sedans, with new powertrains and vehicle architectures letting us imagine how this type of car could be reinvigorated and adapted to fit the changing needs and tastes of drivers”. Should the Infiniti Qs Inspiration concept ever make it to production, it’s unlikely we’ll see it on European roads. The Japanese firm recently announced its plans to withdraw from our marketplace in 2020, opting instead to focus on its electrification strategy for its US and Chinese customers. +++
+++ The top U.S. auto safety regulator said it will open an investigation into 3 million Hyundai and KIA vehicles after reviewing reports of more than 3,000 fires that injured over 100 people. The National Highway Traffic Safety Administration (NHTSA) said the investigation is in response to a petition seeking a probe filed in June by the Center for Auto Safety. The investigation covers the 2011-2014 Kia Optima and Sorento and the 2010-2015 Kia Soul, along with the 2011-2014 Hyundai Sonata and Santa Fe. The probe rekindles safety concerns about vehicles of the South Korean duo, who have already been investigated by the U.S. regulator and prosecutors over engine-related recalls. Hyundai and Kia together have recalled over 2.3 million vehicles since 2015 to address various engine fire risks. Hyundai said in a statement it was cooperating and added it has been in “frequent, open and transparent dialogue regarding non-collision engine fires”. Kia said it will continue to work with NHTSA and “openly shares information and data with NHTSA on all matters pertaining to vehicle safety”. NHTSA said the decision to initiate the probe was based on its analysis of information received from multiple manufacturers, consumer complaints and other sources. The agency said while prior Kia and Hyundai vehicle recalls covered by the probe are primarily related to engine fires, the new probe “is not limited to engine components and may cover additional vehicle systems or components”. Jason Levine, executive director of the Center for Auto Safety, said it was “long past time for the full power of the federal government to be brought to bear to answer why so many thousands of Kia and Hyundai vehicles have been involved in non-crash fires”. He added he hoped the probe will quickly lead to new recalls. “The evidence is now clear: Hyundai and Kia should have acted to recall these vehicles far earlier”, he said. Last month, Connecticut Attorney General William Tong said a group of U.S. states is investigating Hyundai and Kia for potential unfair and deceptive acts related to reports of hundreds of vehicle fires. In November, Reuters reported federal prosecutors had launched a criminal investigation into Hyundai and Kia to determine if vehicle recalls linked to engine defects had been conducted properly. South Korean prosecutors are also conducting separate investigations into the automakers over the recalls, raiding their offices and summoning executives for questioning. In January, the automakers agreed to offer software upgrades for 3.7 million vehicles not being recalled. A South Korean whistleblower in 2016 reported concerns to NHTSA, which has been probing the timeliness of 3 U.S. recalls and whether they covered enough vehicles. +++
+++ Daimler officially opened a MERCEDES-BENZ assembly plant in Russia on at a ceremony attended by President Vladimir Putin, marking a rare foreign investment into Russia’s car industry. The plant in the town of Esipovo 40 km north west of Moscow is the first in years to be opened by a foreign carmaker in Russia where investment into the once burgeoning auto industry dried up amid western sanctions and a stagnant economy. Speaking at the inaugural ceremony, Putin said the plant would produce 25,000 cars a year and that investment in the project had totalled 19 billion rubles ($291 million). Putin said the factory, built after Daimler signed a deal with Russia’s authorities in early 2017, would employ almost 1,000 people. Most global automakers opened plants in Russia in the first half of the 2000s, but after peaking in 2012 car sales slumped to a 10-year low of 1.42 million in 2016. The market is picking up again, and a total of 1.8 million cars were sold last year. Mercedes will build E-class sedans at the plant for the local market. SUV production will follow after the E-class, Mercedes said. +++
+++ OPEL / Vauxhall’s Ellesmere Port production facility has been temporarily shut down in an attempt to minimise the impact of Brexit. The scheduled downtime was organised several months ago, with the expectation that Brexit would take effect on 29 March. The firm’s pre-emptive planning means Opel / Vauxhall is unable to restart production at the site in Cheshire, in spite of the UK’s Brexit extension, as it has already granted holiday for its staff and hired contractors to carry out maintenance work during the downtime. Opel / Vauxhall’s temporary stoppage marks the latest instance of financial and manufacturing disruption caused by uncertainty over Brexit. The firm’s inactive facility joins BMW, Jaguar Land Rover and Honda’s UK plants, all of which also gambled on a punctual Brexit. The impact of these plant stoppages could have detrimental effects to all four manufacturers’ finances. The terms of Brexit are still yet to be finalised and the UK continues to participate in the EU trade union; so if the factories had remained open, they would be able to build vehicles for export that would take advantage of a tariff-free market. Roughly 1,100 Opel / Vauxhall employees have been forced to take leave from their posts at Ellesmere Port, and the future of the factory remains uncertain, after Carlos Tavares, Chief Executive of PSA (Opel / Vauxhall’s owners) said that the site needs to improve its productivity to survive. Opel / Vauxhall has also trimmed more than 900 employees from the facility’s workforce over the last 2 years, due to falling demand for the Astra. Under completely coincidental circumstances, Opel / Vauxhall’s Luton production site has also entered a period of scheduled downtime. The firm is currently re-tooling the factory for the production of the new Vivaro, as part of a €115 million investment into the facility, and it will reopen on April 23. +++
+++ The next-generation RENAULT Zoe, due before the summer, will be a “heavy phase 2 design rather than a new car from the ground up”, according to Renault design boss Laurens van den Acker. The second-generation electric supermini will launch in a far more competitive market space than its predecessor, which means the model needs to step up to rivals. Van den Acker said: “Competition is coming hard and fast in 2020 so Zoe will have to fight for its place”. Part of this overhaul will include a revamped interior, which is expected to take inspiration from the new Clio. It will also offer sustainable materials. Van den Acker claims that such features “fit well with our philosophy that EVs should be more ecological”. The new Zoe is expected to use a bespoke EV platform shared across the Renault-Nissan-Mitsubishi alliance. That’s instead of sharing its platform with the current Nissan Leaf, which uses an adapted version of the original 2011 Leaf’s platform. The bespoke electric platform, which will be used for all forthcoming small to medium-sized EVs, will allow greater battery capacity for a range target of 400 kilometres under the new, more real-world WLTP testing regime. That’s a match for the latest Zoe R110’s NEDC range claim, which is claimed to be around 380 kilometres in the real-world. However, the new Zoe is unlikely to beat the 470 kilometres on WLTP that the Hyundai Kona Electric offers. Renault’s European boss Jean-Christophe Kugler told: “The psychological tipping point is 300 km. The range has never been a blocker for the Zoe and we think today’s fits people’s needs perfectly”. Pricing for the new Zoe is a long way off being announced, but it’s likely Renault will try to keep at the same level to sustain its popularity as one of the most affordable EVs on the market. Multiple variants with differing power outputs, EV ranges and equipment levels could be offered, allowing Renault to keep at the car’s current price point but upsell buyers to pricier variants. Renault is yet to announced a second electric model, but van Den Acker confirmed its zero-emission plans will focus on dedicated electric models rather than variants of existing cars. “There are 2 approaches: you make a dedicated vehicle or derivative. We approach it more with dedicated platforms. We have economies of sale in the Alliance. A dedicated platform gives us more freedom especially in the interior. The next EVs will be a continuation of the Zoe. I can’t wait to show it”. No more details have been confirmed, but Renault has previously said it will launch 8 EVs by 2022, which includes the next Zoe. +++
+++ The overhauling of ROLLS-ROYCE ’s range will continue early next year with a new generation of the Ghost. The second-generation Bentley Flying Spur rival follows the launch of the Cullinan SUV late last year and the 8th generation Phantom limo in 2017. The first prototypes of the new Ghost have been spotted undergoing development testing and reveal a typically evolutionary design approach for the British luxury brand. Since departed design director Giles Taylor intended to modernise the latest Phantom’s looks without losing its familiarity and presence, the same approach looks to have been taken with the Ghost. It will retain the signature rear-hinged rear doors and prominent grille design, with modern touches such as ‘laser’ headlights and LED tail-lights. The bigger news is under the skin, where the Ghost will benefit from an all-new bespoke aluminium spaceframe platform. The outgoing Ghost shared a steel monocoque with the BMW 7 Series, but the new model’s bespoke architecture signifies Rolls-Royce’s greater autonomy from its parent firm. In the Phantom, the platform is claimed to result in a 30 % improvement in body stiffness over its predecessor. The rigidity gains for the Ghost are likely to be less, however, given the outgoing car’s relatively modern platform. The move from steel to aluminium should also make the 2020 Ghost lighter than the current car, which weighs 2.36 tonnes in standard form and 2.45 tonnes in extended-wheelbase guise. However, Rolls-Royce is likely to offset some of the kerb weight benefit with an increase in technology, equipment and insulation. Spy shots reveal that some of the car’s mechanical development and testing is taking place in BMW’s German facilities, rather than at Rolls-Royce’s Goodwood headquarters. A 6.6-litre twin-turbocharged V12, shared between both brands, was developed to Rolls-Royce’s own specifications and will feature in the Ghost. That engine develops 585 hp and 850 Nm of torque in the range-topping BMW M760Li xDrive, but sources suggest it could produce more in the new Rolls-Royce. The Ghost also looks likely to adopt four-wheel drive in a change to the outgoing model, which when mated to a faster-shifting eight-speed automatic gearbox should mean betteracceleration. With a decrease in weight and the engine’s greater on-paper efficiency, small fuel economy gains are likely, although extra tank range is more of a priority for Rolls-Royce owners. The Ghost will continue the technological advancements introduced with the latest Phantom and Cullinan. That means it’s likely to feature a 48V electrical architecture, allowing an active anti-roll system, while 4-wheel steering should also improve low-speed agility and high-speed stability. The interior of the new Ghost has yet to be seen, but it is expected to reflect the same blend of discreet, high-end tech and traditional coachbuilt material richness of its current siblings. That means digital dials, a head-up display and active safety features, as well as details such as an infotainment screen that electrically slides out of sight when not required. +++
+++ Almost 60 % of all new cars sold in Norway in March were fully electric, the Norwegian Road Federation (NRF) said; a global record set by a country seeking to end fossil-fueled vehicles sales by 2025. Exempting battery engines from taxes imposed on diesel and petrol cars has upended Norway’s auto market, elevating brands like TESLA and Nissan, with its Leaf model, while hurting sales of Toyota, Daimler and others. In 2018, Norway’s fully electric car sales rose to a record 31.2 % market share from 20.8 % in 2017, far ahead of any other nation, and buyers had to wait as producers struggled to keep up with demand. The surge of electrics to a 58.4 % market share in March came as Tesla ramped up delivery of its mid-sized Model 3, while Audi began deliveries of its e-Tron. +++
+++ TOYOTA will offer other car firms royalty-free use of nearly 24,000 patents it holds for electrified vehicle technology, in a bid to accelerate the development of such machines. The royalty-free technology licences relate to systems including electric motors, power control systems and system controls. While the bulk have been developed for Toyota’s hybrid technology, the firm says they can also be applied to plug-in hybrid and fuel cell vehicles. Toyota will also offer fee-based technical support to firms producing electrified vehicles that feature Toyota motors, batteries, power and electric control systems. It says the guidance will allow firms to “achieve high levels of vehicle performance”. Toyota executive vice-president Shigeki Terashi said: “Based on the high volume of enquiries we receive about our vehicle electrification systems from companies that recognise a need to popularise hybrid and other electrified vehicle technologies, we believe that now is the time for co-operation. If the number of electrified vehicles accelerates significantly in the next 10 years they will become standard”. In total, Toyota will offer licences to 23,740 patents, with the grants available to firms from now until the end of 2030. The firm has offered 5680 similar licences for fuel cell systems since 2015. Toyota has invested heavily in hybrid technology since the launch of the Prius in 1997. The new Corolla is offered with a choice of two hybrid powertrains, and there is also a hybrid option for the new RAV4. It is currently developing its first pure electric cars, with the aim to offer 10 such vehicles by the early 2020s. Toyota’s move echoes an offer by the Volkswagen Group to licence its new MEB electric architecture to other car manufacturers. It is another example of car firms aiming to pool resources to accelerate development of EV systems, which is needed as firms face increasingly tough CO2 emissions targets from legislators. Toyota has already established partnerships with Mazda and Suzuki, which both involve the development of electrified technology. The Suzuki deal also involves Toyota producing Suzuki-badged hybrid models based on the RAV4 and Corolla Touring Sports. +++
+++ This will be my first sales report of 2019 car sales in the UNITED STATES to include numbers from Ford and GM, both of whom have switched to a quarterly reporting schedule. The biggest item to note so far is that the Ram pickup lineup has so far outsold the Chevrolet Silverado lineup in 2019. We saw brief hints of this shift last fall when Ram’s monthly results edged ahead of Silverado’s briefly. It’s clear that FCA has carried that momentum over into the new year with gusto and the continued ramp-up of Silverado production has not erased Ram’s progress. Speaking of Ram, it’s worth noting that the pickup alone is up so much compared to 2018 that the brand would be ahead of last year’s numbers even without the entire ProMaster lineup. FCA did not include a breakdown of volume between the 1500, 1500 Classic and Heavy Duty models, but even if its numbers are fueled by the Classic, that cost-sunk variant is essentially an ATM at this point. If the first quarter is any indication (and I have no reason to believe otherwise), Jeep’s shot at ‘1 million unit year’ may have come and gone. While Ram continues to steamroll, Jeep is now coming in 7 % under last year’s numbers. In volume terms, that’s only 16,000 units, and the year is young, but we’re skeptical that last year’s already-short performance is going to be eclipsed in 2019. Also, Fiat. There really aren’t a ton of good stories to tell on the GM front. The brightest spot is the Chevrolet Colorado, which seems to have a pretty good head of steam. Up 16 % for the year, it’s going to take some of the sting out of Silverado’s sluggishness. Camaro managed to eke out a slight increase compared to Q1 of 2018, while Tahoe and Suburban both slipped. Toyota has also checked in. Lexus has finally found some gas, though ironically from its ES (there’s a hybrid now; get it?). The RC is also up compared to last year. On the Toyota side, the C-HR had a strong month, while RAV4 appears to have experienced a hiccup (likely thanks to residual production and inventory delays from the model change-over). Nissan is still struggling to check a volume slide which began last year. The best news for the brand comes from Armada, which is now up nearly 8 % over 2018. Pathfinder had a decent March, and the NV vans seem to be doing well enough, but there’s just not a lot of good news elsewhere in the lineup. Honda managed a rosier March than the other volume import brands. The company saw bumps from Accord, Civic and HR-V along with a flat (but strong) performance from CR-V. In any other year, Honda’s overall steady-as-she-goes performance might be lackluster, but any manufacturer doing better than simply treading water has cause for celebration right now. Volkswagen checked in with a big gain for March on a monster showing for Jetta and an almost-equally impressive month for Tiguan (now no longer getting much help from the old-model Limited). Atlas also finished strong. See, Volkswagen? Crossovers. Mazda is doing a whole lot of nothing, it seems, with every model down compared to a year ago. Subaru, of course, is doing everything, largely thanks to Ascent. On the Korean front, Hyundai and Kia both had solid months, with the latter bolstered significantly by a hot start from the Telluride. Tesla’s figures are also somewhat tentative as I await the company’s Q1 results (also expected later this week). The company began delivery of the Model 3 overseas in February and significantly ramped up those deliveries in March, so this will be my first glimpse of how that export volume will influence its U.S. sales numbers. January’s estimate of 32,000 Teslas sold was based on year-end delivery figures carrying over before exports began. I am projecting that domestic deliveries in March dropped by as much as a third of that to make room for ROW production, and we are also factoring in a much larger inventory volume than Tesla has traditionally carried. Some sources have reported that the company has as many as 10,000 unsold units currently floating in inventory. In the first 3 months of 2019, the biggest gainers als losers were: Alfa Romeo (down 26 % to 4,286 cars), Chrysler (down 32 % to 31,591), Fiat (down 45 % to 2,214), Infiniti (down 16.1 % to 34,315), Jaguar (up 27 % to 10,222), Lamborghini (up 85.6 % to 696), Lincoln (up 11.2 % to 24,975), Mazda (down 15.7 % to 70,833), Mini (down 15.5 % to 8,905), Mitsubishi (up 17.6 % to 42,070), Nissan (down 11.6 % to 331,536), Ram (up 21 % to 137,013), Smart (down 28 % to 231) and Tesla (up 485 % to 77,500). +++