+++ BMW will slap the M logo on just about anything, but the 3-Series Touring has been a notable exception. That’s pretty perplexing when you consider Audi offers the RS4 Avant and Mercedes-AMG sells the C 63 Estate. However, that could finally be changing as a high-performance wagon could be in the works. While nothing is official, a “trusted source” has told an M3 Touring has been green-lighted and “could come to market after 2023”. The report should be taken with a grain of salt, but it will probably make a number of fans happy. The model would presumably follow in the footsteps of the M3 and M4. As a result, the wagon would likely have a massive grille, sportier bumpers and a four-tailpipe exhaust system. The M3 and M4 will be unveiled in September and equipped with a twin-turbo 3.0-liter 6-cylinder engine sourced from the X3 M and X4 M. In base form, it produces 480 hp and 600 Nm. Customers will also be able to opt for a Competition variant which has 510 hp and the same amount of torque as the base model. The standard model will be offered with a 6-speed manual, while the Competition variant has an 8-speed automatic. The cars will also be offered with rear- and all-wheel drive. Even if the M3 Touring does come to market, there’s no guarantee the wagon will have as many powertrain options as the sedan, coupe and convertible. +++
+++ As soon as CHEVROLET revealed the Corvette C8 last July, attention turned to what’d come next. Rumours swirled of the high-powered Z06 and range-topping Zora models, as whispers of hybrid power also emerged. In 2015, speculation ran wild when General Motors filed a trademark for E-Ray, the first hint of an electrified Corvette. Thanks to a recent discovery, I now know General Motors renewed that trademark on July 31. The filing comes at a time when the idea of an electric corvette is back in the news. In a new campaign video, former vice president Joe Biden vaguely mentions “an electric Corvette that can go 322 kph”. GM has been vocal about its plan to shift to zero-emissions vehicles, which would include the Corvette. However, it’s unlikely a fully electric Corvette wearing the E-Ray name is right around the corner. Instead, the E-Ray name could see numerous applications, if Cherolet decides to use it at all. Speculation persists that future high-performance Corvette models will feature hybridisation, which means there’ll be some form of electrification. Both the Grand Sport and the Zora are expected to feature hybrid engines. The E-Ray name could be used to classify the Corvette’s hybrid power plants, too, or Chevrolet could use it on something we haven’t heard about yet. There’s a significant chance the trademark continues to sit unused on a shelf at GM, forcing the automaker to renew it again in 5 years when I’ll write again about the E-Ray trademark, hoping GM does something with it. Hybrids will serve as a stepping stone for consumers before GM shifts to a fleet of fully electric cars. There’s a good chance we could see more hybrid Corvettes in the future, which makes a solid case as to why GM renewed the E-Ray trademark. +++
+++ CHINA ’s auto sales in July climbed 16.4 % from a year earlier; the 4th consecutive month of gains as the world’s biggest vehicle market comes off lows hit during the country’s coronavirus lockdown. Sales rose to 2.11 million vehicles in July, but are still down 12.7 % for the year to date at 12.37 million vehicles, according to wholesale sales data from the China Association of Automobile Manufacturers (CAAM). The association expects auto sales to fall around 10 % this year barring a second wave of virus infections which could deepen the slide to around 20 %. In a promising sign for many global automakers which have invested heavily in electric vehicles for the China market, sales of new energy vehicles (NEVs) ended 12 straight months of decline with a 19.3 % jump to 98.000 units. “The sales growth shows NEV makers and customers are getting used to the new normal after the government cut subsidies last year”, said Xu Haidong, a senior CAAM official. CAAM expects NEV sales of 1.1 million vehicles this year; a drop of around 11 % from last year. NEVs include battery-powered electric, plug-in gasoline-electric hybrid and hydrogen fuel-cell vehicles. Sales of trucks and other commercial vehicles, which constitute around a quarter of the market, surged 59.4 %, driven by government investment in infrastructure as well as tougher emission rules introduced this year. Sales of passenger vehicles rose 8.5 %. Automakers which have reported sales growth in July include Great Wall Motor, Geely Automobile Holdings and Toyota. Haitong International analyst Shi Ji said that current levels of inventory in the industry seemed high, which could prompt dealers to offer bigger discounts. +++
+++ FERRARI has delayed the launch of its SF90 Stradale by several months, due to production delays caused by the coronavirus pandemic. The Italian marque’s first series-production plug-in hybrid (after the limited-run LaFerrari hypercar) was originally due to arrive to first buyers in the first half of this year. However, those cars never arrived, and it’s now confirmed that first deliveries have been pushed back to later this year, because the pandemic disrupted Ferrari’s supply chain. The SF90 Stradale has been particularly affected, because it contains more than 2.000 new components from suppliers. Ferrari CEO Louis Camilleri told investors in a recent earnings call: “While we’re confident that deliveries to our clients will begin early in the fourth quarter of 2020, the ramp-up in production will inevitably be delayed, which is the predominant reason for the adjustment to the midpoint of our guidance for the full year”. Ferrari halted all production at its Maranello and Modena factories in March. While those plants returned to full capacity in early May, Ferrari shipped 48 % less cars in the second quarter of 2020 than in the same period last year. Net revenues have fallen by a similar margin, down 42 %, according to a recent report, for a total of €571 million. Unveiled in May 2019, the SF90 Stradale is the most powerful and fastest-accelerating road car Ferrari has yet produced. It generates 1.000 hp through Ferrari’s F154 twin-turbocharged V8, bored out from the 3.902 cc of the 488 Pista to 3.990 cc, and a trio of electric motors. The motors are powered by a relatively small (7.9kWh) lithium ion battery pack that makes the SF90 Stradale capable of 25 kilometres of electric-only running at speeds of up to 135 kph. 2 of the motors are mounted at the front, the other 1 at the rear between the engine and gearbox, giving the car 4-wheeldrive. All of this results in a 0-100 kph time of 2.5 seconds; a record for a roadgoing Ferrari. Furthermore, 0-200 kph takes 6.7 seconds, while the top speed (claimed not to be the main performance focus) is 340 kph. +++
+++ Back in June, we first caught a glimpse of the facelifted FIAT Tipo Cross, a high-riding variant of the no-frills compact hatchback. Photographers have now spotted the Tipo SW Cross jacked-up estate testing in the Alps. This likely means Fiat will give the Cross treatment to at least 2 of the facelifted Tipo’s 3 body styles; as of now, we have no proof that the Tipo sedan will also be available in Cross guise. As with the Tipo Cross hatch spotted on the streets of Turin, Italy 2 months ago, the Tipo SW Cross features camouflaged wheel arches and side sills, leading us to believe they will feature plastic body cladding to make them look wider and more rugged. Besides the cladding, the Tipo SW Cross is in for other exterior upgrades including more rugged-looking bumpers, dedicated wheels and, obviously, a higher ground clearance. Add to that the updates brought by the facelift of the Tipo range, which will include a new grille as well as new headlights with LED driving lights integrated in the upper part and taillights with revised graphics. On the inside, the 2021 modelyear Fiat Tipo should gain an updated infotainment system, probably with a larger display, as well as minor upholstery and trim changes. Fiat is also expected to make some changes under the hood by introducing the new Firefly family of 1.0-liter 3-cylinder and 1.3-liter 4-cylinder turbocharged petrol engines to the Tipo lineup. A mild-hybrid powertrain is said to be in the cards as well. As for the diesels, reports from Italy claim that only the 1.6-liter MultiJet will carry over. Regardless of the powertrain, all Tipo models will remain FWD-only. The facelifted Fiat, including the new Cross variants, is expected to debut in early fall 2020. +++
+++ About a month ago, FISKER confirmed negotiations with the Volkswagen Group to use the latter’s MEB platform for its Ocean electric SUV. Now, word is out that the electric startup is holding talks with another automotive giant, Canadian auto supplier Magna International, for the Ocean’s production. In a statement, Fisker said a definitive agreement is expected to be reached “in the next few months” to have Magna Steyr build the Ocean SUV at its plant in Graz, Austria, as early as the fourth quarter of 2022. According to the California-based startup, Fisker and Magna International are “also evaluating manufacturing options for the United States and China”. Although negotiations with the Volkswagen Group over Fisker’s use of the MEB architecture for the Ocean SUV are a separate matter, it is unclear whether or not they are still ongoing. A Magna spokesman confirmed the memorandum of understanding, but refrained from commenting further. Magna Steyr builds several models under contract for other manufacturers at its plant in Graz, Austria, including the Jaguar I-Pace and E-Pace, Mercedes-Benz G-Class, BMW Z4 and Toyota Supra. In a July 30 statement, Fisker said that production of the Ocean SUV is expected to begin during the fourth quarter of 2022, and that the EV is fully sold out for the first year based on reservations. The company claims it has advance reservations and deposits for 7.062 Ocean SUVs. By 2025, Fisker is planning an expansion of its lineup to 4 vehicles. In addition to the Ocean SUV, the range will include a super sports sedan based on the EMotion concept, a sports crossover, and a lifestyle pickup truck. According to Fisker, each model will use “platforms, battery packs, and component systems from industry-leading car manufacturers and technology suppliers”. The company run by designer Henrik Fisker says it will make its final selection on platform and manufacturing location of the Ocean in the coming months. +++
+++ HYUNDAI launched its own electric car brand Ioniq named for the automaker’s first eco-friendly vehicle rolled out in 2016. “Our Ioniq brand of EVs can be recharged in less than 20 minutes, which is the shortest period in the world, and travel more than 450 km on a single charge”, Hyundai claimed in a press release. A full line-up of EVs is planned by 2024. The first car to hit showrooms next year is the Ioniq 5 midsize cross-over. In 2022, it will roll out the Ioniq 6 midsize sedan and in 2024 the Ioniq 7 large SUV. The global EV market is expected to grow quickly with Bloomberg forecasting EV car sales to account for 58 % of global sales by 2040. “The seismic shift will see cars with a plug account for a third of the global auto fleet by 2040”, the daily said. “Electric cars will outsell fossil-fuel powered vehicles within two decades as battery prices plunge, turning the global auto industry upside down and signaling economic turmoil for oil-exporting countries”. Models currently under the Ioniq name, which include both plug-in hybrids and full electric cars, will not be included under the new banner. The Ioniq 5 will be the first model to be manufactured on the carmaker’s E-GMP platform. Unless Kia rolls out a full EV model early next year, the Ioniq 5 is likely to be first equipped with batteries from SK Innovation, according to the carmaker. E-GMP is Hyundai Motor’s EV-dedicated platform, which will be utilized from early next year. Hyundai’s latest move points to the carmaker’s determination to take a firm lead in the global EV business. Until now, the carmaker has been putting more focus on making internal combustion engine vehicles. Eco-friendly cars previously came as spinoffs based on existing models, with the exception of the Ioniq sedan, which doesn’t have an internal combustion engine version. With the start of the new Ioniq brand, Hyundai will be able to make cars more suitable for battery-type powertrains. For the time being, Ioniq will not be operating at the same level as Genesis. While Genesis is a separate brand and has a team that manages the brand, Ioniq will be an integral part of Hyundai. But the possibility exists that Ioniq will follow Genesis, which started as a model name in 2008 and became an independent brand in 2015. +++
+++ JAGUAR LAND ROVER is developing a programme that will allow self-driving cars to adapt their driving style to reduce motion sickness among passengers. The programme is based on software that uses biometric sensors to detect how susceptible individual drivers and passengers are to getting car sick. This data is then used by the system to find the ideal acceleration, braking and lane positioning to reduce motion sickness by up to 60 %. The autonomous car then adjusts its driving style accordingly. The software, which has been fine-tuned over 32.000 real-world kilometres and virtually simulated test miles racked up through JLR’s autonomous fleet, is expected to be integrated into the company’s future production cars as driver assist technology develops. Although JLR refused to comment on future product plans, a spokesperson said that the system’s principles “can be applied to any vehicle with increased levels of automation”. JLR’s chief medical officer, Steve Iley, said: “Mobility is rapidly changing, and we will need to harness the power of self-driving vehicles to achieve our goal of zero accidents and zero congestion. Solving the problem of motion sickness in driverless cars is the key to unlocking the huge potential of this technology for passengers, who will be able to use the travelling time for reading, working or relaxing”. The program is part of JLR’s wider Destination Zero initiative, which aims to make driving safer by lowering CO2 emissions, accidents and congestion. Project Vector, an autonomous concept car, was recently revealed as part of this scheme. +++
+++ MERCEDES-BENZ ’ new generation of app-based digital services will, in future, allow drivers to decide whether they wish to drive their car or let it drive itself. The new “digital eco-system”, which initially comprises 3 main Mercedes Me apps already available to download, plus its own developer platform, means that Mercedes owners can now add functionality such as pre-conditioning the temperature inside their car or booking a service. Mercedes-Benz’s new generation of app-based digital services will, in future, allow drivers to decide whether they wish to drive their car or let it drive itself. The new “digital eco-system”, which initially comprises three main Mercedes Me apps already available to download, plus its own developer platform, means that Mercedes owners can now add functionality such as pre-conditioning the temperature inside their car or booking a service. However, this is only the first step for Mercedes in the type of digital services it will offer as it bids to capitalise on the rapid development of digitalisation and automation in the car industry and, crucially, on an important revenue stream. Mercedes’ boss of digital services, Mathias Vaitl, told: “This is just a starting point of a new era for the digital services business. An app is far more than a remote control. There’s a lot more to come: regarding safety, connectivity to other devices such as Apple watch, so that one’s whole life is connected. Our goal is to be the digital leader in the industry”. One area in which Mercedes’ digital services will play an important role is self-driving cars. Last month, Mercedes chief Ola Källenius announced a tie-up with Silicon Valley-based Nvidia placing in-car computing power at the forefront of its business. The partnership will result in new systems in Mercedes models from 2024 that promise next-generation over-the-air software upgrades, including automated driving features. Vaitl said: “There will be special equipment on our cars that you can deactivate or activate via our digital services. Källenius recently talked about automated driving and this is one example where we will see activation and deactivation on demand. This is how we want to offer it to our customers. We think this is very flexible and this is the future for the digital services business within the automotive industry”. He added that the new developer platform will allow the maker to develop and add functionality to its apps much more quickly than previously. Although Vaitl wouldn’t detail upcoming features, he confirmed that Mercedes-AMG performance models will have their own bespoke apps, not available on standard Mercedes cars. +++
+++ A prototype for the 992-generation PORSCHE 911 GTS has been filmed testing at the Nurburgring and has the potential to be one of the best 911 variants on the market. While the tester looks like pretty much all other 911 Carrera models, it is rocking a set of centerlock wheels and appears to have enlarged brakes. It has largely the same dual tailpipe design as other 911 variants and at one stage, was filmed driving alongside a prototype for the long-awaited 992 911 GT3. Previous spy shots of the new 911 GTS have revealed that it will also feature smoked headlights and unique bumpers. It will also have clear taillights and a handful of black trimmings, including around the windows, front splitter, side skirts, and the lower portion of the rear bumper. In terms of power, the previous 911 GTS was rated at 450 hp from its 3.0-liter twin-turbocharged flat-6 engine. While the engine of the new GTS will be mostly the same, Porsche’s engineers will inevitably tweak it to provide some extra grunt. I expect it to produce at least 480 hp and understand that a 6-speed manual transmission will be standard while an 8-speed PDK dual-clutch will be optional. Porsche was expected to reveal the sports car this summer but given the whole Covid-19 situation, we will likely have to wait a few more months to see it in the flesh. +++
+++ India’s Mahindra has decided to reduce its majority stake in South Korean SUV maker SSANGYONG . Mahindra managing director Pawan Goenka said in a virtual press conference in Mumbai that the Indian automaker “is in dialogue with investors and we would announce the status of these dialogues at an appropriate time”. Mahindra currently owns 74.6 % of the Korean automaker, and the board the same day moved to reduce that to less than 50 %. That could cause problems for Ssangyong, which borrowed around W200 billion in short-term loans from JP Morgan, BNP Paribas and Bank of America on condition that the Indian conglomerate retains a majority stake. Any new investor would have to redeem the debt immediately after acquiring the majority stake. Mahindra earlier refused to make any further investment in Ssangyong, which it rescued from bankruptcy in 2010, because it is preparing to get rid of loss-making parts of its business. Anish Shah, Mahindra’s chief financial officer and heir apparent to Goenka, told investors: “The board made it clear that it will not invest any more”. The South Korean automaker, which has suffered 14-straight quarters of losses until the second quarter of this year, has been looking for a new investor since June. +++
+++ Hidden in what you might call the small print, were it not such a large number, of TESLA ’s recent Q2 financial report were the latest figures highlighting its income from selling emissions credits to rival car makers: $428 million, or 7 % of the company’s revenue. The moral standpoint of these credits is hotly debated. They work in a variety of ways, such as car makers with emissions below the mandated target selling them to car makers above the target, or car makers with zero-emissions capability selling them to car makers without it, allowing them to then sell cars in various US states, including California. These credits have played a crucial role in Tesla’s against-all-odds growth. Its net profit for the Covid-19 afflicted quarter running from March to June was $104 million and without the credits, it would not have recorded accounting profitability across the past 12 months; a milestone that unlocks a variety of potential benefits for the firm, not least increased standing in the all-important investor circles, where even the most conservative of commentators can now justify getting a bit giddy. An operating margin of 5 % (okay in car industry terms) would be a perilous 1 % without them. The estimate is that Tesla will earn more than $1 billion from these credits in 2020 alone, and while senior executives concede that they are staring down the barrel of a decreasing income stream as rivals get their acts together and launch some BEVs of their own, the rate at which Tesla is earning has so far kept accelerating. It’s a lucrative if unpredictable income stream currently enjoying exponential growth: in 2018 Tesla earned $419 million from them and in 2019 even more: $593 million. Who is buying the credits, and what they are paying, is hidden mostly in opaque accounting. Of everyone, Fiat Chrysler Automobiles is the most open because of its ownership structure, so it is on record that FCA has a deal to buy $1.1 billion of credits through to 2023. Court filings last year revealed that General Motors, which has its own EV capability with the Bolt, is also a customer. However, one CEO, well known for being brilliantly connected and with recent experience of mainstream premium brands, recently told that “almost every car maker is buying credits in some form, but we don’t have to declare it”. None of this is Tesla’s fault, of course. Indeed, a fair mind can only give credit where it is due. But when it’s cheaper to pay a competitor than build cars to meet regulations, you have to wonder if the system itself is fit for purpose. +++
+++ The automotive industry’s shift to trucks and SUVs seems unstoppable at the moment, with U.S. carmakers in particular ditching their passenger cars at an alarming rate. We live in a time where Ford and Buick will soon no longer have sedans in their lineups following the production end of the Fusion and Regal, respectively. At the end of the year, Lincoln will join them as the Continental will be axed too, following the recent discontinuation of the MKZ. As for Cadillac and Chevrolet, their sedan lineups get thinner with each passing year. So what does TOYOTA , you might ask? The exact opposite: conquer passenger car customers left behind by U.S. carmakers. Instead of ditching passenger cars altogether, Toyota actually expands its offerings. The Japanese carmaker recently announced Nightshade Editions for the Camry SE and Avalon XSE, the Corolla Apex Edition, the Corolla Hybrid, as well as AWD versions of the Prius, Avalon and Camry. There’s more to come too, including the second-generation Mirai hydrogen fuel cell sedan that will launch later this year. Toyota USA’s marketing vice president, Cynthia Tenhouse, sees a bright future for the brand’s passenger car lineup. “It’s amazing how much of a demand there still is for sedans. We’re expecting a 4 million unit market for sedans in 2020”, she said. “We’re happy to take as much of that market as we can. For us, it represents roughly 750.000 in the U.S. That’s more than some other OEMs sell altogether”. Let that sink in for a moment: out of 2.1 million vehicles sold by Toyota in 2019 in the United States, nearly 770.000 were sedans. Surely this doesn’t look like a dying market segment, at least not for Toyota. Here’s an even more compelling statistic cited by Tenhouse: in 2019, 31 % of Toyota’s sedan customers came back to purchase another. “Those are pretty good odds for us. It’s clearly a segment we want to be in”, Tenhouse added. Essentially, Toyota keeps making sedans because its customers want them. Mind you, that in itself is not enough as the carmaker says its sedans must be cars people want to drive. For example, an American Camry buyer has 17 different choices, from V6, 4-cylinder, hybrid, all-wheel drive, TRD, XLE, XSE and others. “We’re giving people more choices within each series”, Tenhouse commented. Electrification plays a big role in that as well, with Toyota pledging that every model in its lineup will have an electrified version by 2025. The sedan lineup is nearly there, with the Prius, Camry, Avalon and Corolla offering electrified variants. +++
+++ VOLKSWAGEN has been dealt another blow in the United Kingdom group action lawsuit over the Dieselgate emissions scandal as its appeal was rejected by the courts. The landmark ruling means that the compensation case lodged by owners can continue. It also likely means that almost 90.000 affected owners of Audi, Seat, Skoda and Volkswagen cars could now receive compensation by 2022. The verdict, delivered by Rt. Hon. Lord Justice Males, ruled that “the Judge’s “defeat device” issue was clearly correct”. If Volkswagen had won the appeal, it is likely that the outcome would’ve been longer and more protracted. Preliminary motions including witness evidence exhanges, a selection of lead claimants and full disclosure will now take place before the trial actually begins. A spokesperson for VW has issued statement saying the firm is “disappointed” in the Court of Appeal’s decision, but “respects it”. “This decision relates to the technical points of law that formed the Preliminary Issues Hearing in 2019”, the statement continues. “It does not determine the points of loss, liability and causation, which will be decided at a trial, not before March 2022. Volkswagen maintains that because customers have not suffered any loss, it does not owe them compensation. Nevertheless, this is a matter for the main trial in due course. Volkswagen has openly acknowledged that, in relation to the emissions issue, we did not live up to our own standards. We are committed to maintaining the trust of the public through programmes such as our €33 billion investment into e-mobility, bringing 75 fully electric car models to market by 2029”. The class action lawsuit, which could be the largest consumer action in English legal history, involves almost 90.000 owners of Audi, Seat, Skoda and Volkswagen cars. They’re claiming for compensation over the installation of illegal ‘defeat devices’ to cheat European Union emissions standards. Lawyers for the owners say Volkswagen knowingly “cheated” rules put in place to “save lives” by installing an unlawful device designed to detect a rolling road test and alter the combustion process to reduce nitrous oxide (NOx) emissions by up to 40 times. The judge in the case earlier this year, Mr Justice Waksman, ruled that “the software function in issue in this case is indeed a defeat device” under the classification defined by the EU. The judge claimed he was “far from alone in this conclusion”, noting various courts and industry bodies that agree with the verdict. He called Volkswagen’s defence “highly flawed” and “absurd”, adding: “A software function which enables a vehicle to pass the test because it operates the vehicle in a way which is bound to past the test and in which it does not operate own the road is a fundamental subversion of the test and the objective behind it”. The first hearing began in December 2019, looking at whether the company’s EA189 diesel engine (sold in 1.2-litre, 1.6-litre and 2.0-litre capacities) featured such a device. Volkswagen then lost its first ruling in April this year. It said that it was “disappointed” by the verdict despite it only relating to preliminary discussions. Despite the lost appeal an early ruling, there are still further phases of the case, including determining ‘causation’, ie. whether or not the defeat device caused damage. These are due to play out at the end of this year or early 2021. If the verdict goes against Volkswagen, it could be ordered to pay hundreds of millions of pounds in compensation. VW hasn’t paid compensation to any UK owners, claiming the cars weren’t fitted with a ‘defeat device’ under UK law. Previous rulings to the contrary in other countries, such as the US, carry no weight in the UK, hence the need for the class action proceedings. Lawt month, it was revealed that a similar consumer case in the US had been won by the claimants, resulting in Volkswagen having to pay between $5.100 and $10.000 per customer. That added up to $9.8 billion. +++
+++ VOLVO is on the last straight to launch its all-electric XC40 Recharge P8, based on the Compact Modular Architecture (CMA), which was used in more than 600.000 cars. The CMA is a universal platform for conventional and all-electric models, and aside from the all-new Polestar 2, it was used mostly in Internal combustion engines (ICE). The list included: 302.856 XC40 cars (since 2017), 309.255 Lynk & Co cars (01, 02, 03 and 05 models) and 35.708 Geely cars. Two things are interesting about the CMA. First is how well the all-electric cars will cope with competition, especially with BEVs built on dedicated all-electric platforms. The efficiency might be one of the key factors to observe. The second thing is the transformation from mostly ICEs to mostly BEVs. Volvo said that from 2025, at least 50 % of its sales will be all-electric and the rest will be at least hybrids. It means that CMA, and some other platform in the group, will transform from mostly ICEs to BEVs. Taking into consideration how many models are offered on the CMA platform, we also wonder when we will see some new mainstream all-electric models in China? It should be an obvious next move. +++
