+++ Vehicle inventory, vehicle pricing and the supply chain are finally showing improvement. Vehicle quality, on the other hand, is still going the wrong way. That’s the takeaway from the 2023 J.D. Power Initial Quality Study (IQS) that found overall problems exceeded last year’s record high. The study surveyed owners of 2022-model-year vehicles to assess the average rate of problems per 100 vehicles (PP100) during the first 90 days of ownership. The average figure for the 32 ranked manufacturers in 2020 was about 166 problems per 100 vehicles. In the 2021 IQS, that dropped to an average of 162. For 2022, the average jumped to 180 problems. For 2023, the PP100 is up to an industry average of 192; an increase of 30 problems per 100 vehicles in just 2 years. Let’s get to the good news first: Dodge reclaimed the crown of having the lowest number of problems per 100 vehicles at 140. Buick won last year with 139 PP100, falling to third this year. Dodge was the first American automaker to top the IQS in 2021. Its return as the least problematic gives parent company Stellantis 3 wins in 4 years after Ram was crowned in 2021. It also gives U.S. brands a 4-peat after Buick topped the chart in 2022 by having owners report the fewest problems. This year’s top 10 is Dodge, Ram, ALFA ROMEO , Buick, Chevrolet, GMC, Porsche, Cadillac, Kia, and Lexus. Stellantis gathered a few feathers for its cap, in fact. Maserati showed the largest improvement year-on-year, followed by Alfa Romeo, and Alfa Romeo posted the lowest PP100 among the premium class, beating Porsche and Cadillac. Alfa Romeo has been vocal about working to improve quality, mentioning Lexus as a target. Last year the Japanese brand finished sixth, the Italians finished near the bottom, between Jaguar and Mitsubishi. This year Alfa jumped to third, Lexus dropped to tenth. Ram was the third-best on the list of improvers from 2022 to 2023. The individual model with the lowest PP100 is the Nissan Maxima. Now for the troublesome bits. In the words of Frank Hanley, senior director of auto benchmarking at J.D. Power, “The industry is at a major crossroad and the path each manufacturer chooses is paramount for its future. From persistent problems carrying over from years past to an increase in new types of problems, today’s new vehicles are more complex (offering new and exciting technology) but not always satisfying owners”. To set the table, the IQS asked nearly 94.000 owners and lessees of 2022MY vehicles (10.000 more respondents than last year) a battery of 223 questions, those questions organized into 9 vehicle categories: infotainment; features, controls and displays; exterior; driving assistance; interior; powertrain; seats; driving experience; and climate. Infotainment continued to be biggest hassle, but problems with features were the big news this year, one of the unexpected findings that some of the features are simple. Respondents mentioned door handles as an issue, for instance, 7 out of 10 vehicles with ornery door handles being EVs. Lane departure warning and forward collision/automatic emergency braking systems got called out repeatedly. Drivers of vehicles with Google’s Android Automotive Operating System dinged the software enough to create a 25.1 PP100 difference between cars with the software and cars without. And difficulties with wireless charging sound like old issues with Bluetooth connections, the charging pads either not working, working sporadically, or working to well and overheating the phone. Owners are a tiny bit happier with manufacturer smartphone apps. So that’s good. Among EV-only makers Tesla, Lucid, Polestar and Rivian, none could be officially ranked because they don’t give J.D. Power access to owners in states that require manufacturer consent. With that caveat, survey answers from respondents who own these makes would have put these brands at the bottom of the list. Tesla’s 240 PP100 from 2022 worsened to 257 PP100 this year. Polestar improved, but scored 313 PP100, behind Rivian with 282 PP100 but better than Lucid at 340 PP100. +++
+++ BENTLEY ’s first electric car, due on sale in 2026, will be available with hands-free driving capability, brand CEO Adrian Hallmark has said. The new EV, which will be unveiled in 2025, will be built on the new PPE (Performance Platform Electric) architecture developed alongside Audi and Porsche and use the Volkswagen Group’s software 1.2, which enables hands-free driving. Hallmark confirmed Bentley will use Mobileye’s SuperVision technology, recently confirmed for the Porsche e-Macan on the same platform, which uses 11 cameras, Mobileye’s EyeQ5 chip and crowd-sourced high-definition maps to allow hands-off, eyes-on Level 2+ autonomy. The Bentley EV will initially offer ‘partial’ hands-off driving on motorways and automated parking, with ‘full autonomous’ coming later, Hallmark told. Mobileye has said SuperVision allows for level-three, hands-free, eyes-off autonomy on motorways. The slow development of the 1.2 software within the Volkswagen Group has led to the delay of the Bentley EV, as well as the Porsche e-Macan and Audi Q6 e-Tron on the same platform. The final approval of the 1.2 software, aimed at premium cars within the Volkswagen Group, is now being led by ex-Bentley manufacturing head Peter Bosch, who was appointed head of the Cariad software unit in May following a shake-up in the troubled division. The PPE electric architecture will allow power of up to 960 hp, Volkswagen Group CEO Oliver Blume told investors earlier this week, giving a hint at the likely output of the Bentley. Hallmark has previously said the EV will be “an incremental product” to the current line-up. “We intend to create not just an EV but to shape a segment too”, he told last year. +++
+++ The U.S. Energy Department plans to lend up to $9.2 billion to a joint venture of Ford and South Korea’s SK On to help it build three battery plants in Tennessee and Kentucky. The conditional commitment for the low-cost government loan for the BLUEOVAL SK joint venture comes from the government’s Advanced Technology Vehicles Manufacturing (ATVM) loan program. SK is a unit of South Korea’s SK Innovation. The joint venture is building 3 battery manufacturing facilities in Kentucky and Tennessee capable of collectively producing more than 120 gigawatt hours annually, the Energy Department said. Jigar Shah, head of the Energy Department’s Loan Programs Office, said in an interview its goal “is to have people choose to put these supply chains here in the United States, not in other countries, and to do them faster and more confidently here”. This is the 6th loan for battery supply chain projects from the ATVM program. The plants will displace more than 455 million gallons of gasoline per year for the lifetime of the vehicles powered by the batteries they manufacture. The project is expected to create 5.000 construction jobs in Tennessee and Kentucky, and 7.500 operations jobs once the plants are up and running. “Major technology transitions have always been accelerated by collaboration between the public and private sectors”, said Ford Treasurer Dave Webb. BlueOval SK CEO Robert Rhee said the loan will be used to “strengthen critical domestic supply chains, and produce high-quality batteries for future Ford and Lincoln electric vehicles”. The $430 billion Inflation Reduction Act, approved last August, also creates a new $45 per kilowatt battery production tax credit. Ford CEO Jim Farley said in October that from 2023 to 2026, “we estimate a combined available tax credit for Ford and our battery partners could total more than $7 billion”. The loan will fund two battery projects in Republican-leaning states. Many Republicans in Congress have criticized the Biden administration’s efforts to boost EV and battery production. Last year, the department awarded a joint venture of General Motors and LG Energy Solution $2.5 billion to help finance construction of new lithium-ion battery cell manufacturing facilities. The loan to Ultium Cells LLC is for facilities in Ohio, Tennessee, and Michigan. In September 2009, Ford was awarded a $5.9 billion low-cost government loan from the same program, an important source of liquidity in the aftermath of the global financial crisis. It completed its payments last year, after deferring some in 2020. Ford announced in February a separate deal to spend $3.5 billion to use technology from Chinese battery company CATL to build a battery plant in Michigan. That plan has faced criticism from some Republicans. Tesla received a $465 million loan in 2010 from the program that allowed it to open a plant in Fremont, California, and build the Model S electric car. It repaid the loan in 2013. +++
+++ FORD is preparing for a new round of layoffs for its salaried workers in the United States. The company in March last year announced plans to reduce structural costs of up to $3 billion at its gas-powered vehicle unit. In August, Ford said it would cut a total of 3.000 salaried and contract jobs, mostly in North America and India. The new round of layoffs is expected to affect employees at the Detroit automaker’s gas, electric-vehicle and software divisions, but the number of cuts could not be learned. The automaker’s latest effort to streamline its operations comes after peers Stellantis and General Motors said they were offering employee buyouts. Price hikes and strong demand for new vehicles have helped automakers counter some inflationary headwinds, though higher costs of raw material remain a challenge. Automakers have also been trying to control costs at their expensive-to-run electric vehicle businesses, a focus area for the industry as environmental-friendly vehicles drift into the mainstream. +++
+++ Not only has the new MAZDA MX-30 R-EV rotary plug-in hybrid been revealed, it’s now in production, truly making it a reality. Production started Thursday. This is a momentous event since Mazda hasn’t built a rotary-powered car for just over a decade. That last rotary was the RX-8, which used a 1.3-liter twin-rotor engine. The final engine was built on June 22, 2012, exactly 11 years ago. The MX-30 R-EV’s engine is an 830-cc single rotor paired with a 168 hp electric motor, the latter of which provides all the forward propulsion. The rotary engine on the other hand simply produces electricity. These first MX-30 R-EVs are destined for Europe, and will be on sale starting this fall. The regular electric MX-30 has been much more successful in Europe than other markets with more than 15.000 sold (as opposed to sales in the triple digits in the U.S.). Supposedly, Mazda will launch this plug-in hybrid in the U.S., which would be much more practical in America than the 100-mile EV version, but the time frame is unclear, assuming it happens. Mazda also noted that at the end of RX-8 production, the company had built 1.99 million rotary cars over its history. So now we’ll be curious to see if this powertrain sees 2 million, either through around 100.000 MX-30 R-EV sales, or with as yet unannounced rotary-powered models. +++
+++ The MG 4 is one of my favorite budget family EVs of the moment but it’s set to gain a range-topping hot hatch version, reviving the ‘XPower’ name in the process. The MG 4 XPower will start from about €44.000 in the Netherlands, setting it up as something of a fast car bargain. The same 61.4 kWh battery will be borrowed from the regular MG 4 Long Range, sending power to a single electric motor mounted on the rear axle. That motor will be able to produce a whopping 435 hp and 600 Nm of torque. The leaked specs reveal the 0-100 kph time will be 3.8 seconds and the top speed will be 195 kph. As you’d expect, efficiency takes a hit with the XPower model offering a WLTP range of 400 km, compared with 450 km for the MG 4 Long Range. A 10-80% charge is possible in 35 minutes thanks to 150kW rapid charging. A hot MG 4 has been on the cards for a while. Guy Pigounakis, MG Commercial Director, previously explained in an interview. “We’re bringing out a high-performance version of MG 4”, he said. “It gives us the option of erring on the side of comfort with the standard car because of the very high-performance derivative”. Pigounakis added: “We have very sensible cars today. That’s about to change into sensible and fun cars”. The XPower’s equipment list should at least match the current range-topping Trophy model. We already know it’ll offer 18 inch alloy wheels, orange brake calipers, automatic LED headlights and tinted windows. A new ‘Racing Green’ paint finish will also arrive. Inside we’ll see a similar layout to the standard MG4 models with a 10.25-inch touchscreen. It’ll also get Alcantara sports seats and metal pedals. We noticed boot space will reduce from 363 litres to 289 litres; probably due to a bigger rear electric motor. Given the performance increase and additional kit, the €44.000 MG 4 XPower’s price increase over the €37.785 Long Range Luxury version looks like decent value, with few cars of any type matching it for power per euro. Documents for an MG 4 ‘Extended Range’ model were also leaked with a larger 77 kWh battery allowing for up to 520 km of range and a 0-100 kph time of 6.5 seconds. Pricing for the MG4 Extended Range hasn’t been revealed. +++
+++ Looking to upgrade from a modest, mass-manufactured car for the many to a more exclusive, PREMIUM model for the few? Upgrading is a perfectly natural and positive goal, but it’s not necessarily the right one; particularly if you’re the type of driver who considers reliability, running costs, safety and value more important than anything else. True, some (not all) premium cars wear instantly recognisable, highly desirable badges that, in effect, scream ‘quality, heritage, provenance’ and all that other good, laudable stuff. Among other things, such personal vehicles may (but may not!) assist you in creating a more upmarket image for yourself. They might even impress your neighbours, although I never will understand the point of trying to do that. Easier to comprehend is this: generally, the most satisfying, dependable and safest vehicles aren’t premium cars. What’s more, such workhorse models often deliver the added bonuses of a) lower pence per mile figures and b) greatest possible overall value. Who says? For starters, I do. Half of the cars I owned or still own fall into unapologetically modest motor territory: everything from factory-fresh or beaten-up Fiats, Fords, Opels and Peugeots. The other half were/are new or used, premium products from the likes of Audi, BMW, Mercedes and Volvo. And I can honestly say that it’s these latter, more expensive (to buy, tax, insure, run, service and repair) models that have traditionally been the least reliable and, all things considered, the worst value. More importantly, the car-buying public is (via the latest Driver Power enquiry) more or less confirming the same thing: that some upmarket cars can often struggle to adequately satisfy consumers who, considering what they paid for them, expected more. Of the top 40 cars, just 7 (Lexus RX, BMW i3, Polestar 2, Tesla Model 3, Audi Q3, Lexus UX, Mercedes A-Class) are from premium manufacturers. Put another way, an impressive 82.5 per cent of the 40 most satisfying cars are more affordable, non-premium products. The fact that the well priced C4 from Citroën (for decades, a car company of the people) took the top spot, while Dacia (the bargain champ of the 2020s) grabbed 4th with its Duster, confirms that simple, honest, no-nonsense cars can (and in this case, clearly do) see off allegedly superior products built by companies playing the premium game. A few of them feature far too heavily at the bottom end of the 75-strong satisfaction league. The Jaguar I-Pace is 65th, the Audi A5 is 71st, the BMW 1 Series 72nd and the Range Rover Evoque 73rd, and therefore in the relegation zone. In important individual departments, the Jag is ranked 74th for value, the Audi 75th for safety, the BMW 75th for engine and gearbox, the Range Rover 75th, and last, in 3 vital areas: fuel consumption & running costs, reliability and value. This is harsh. But it’s true. The public has, thanks to Driver Power, had its say. And at the very least, this handful of British and German premium car manufacturers needs to listen and learn from its mistakes and dramatically rectify them. With immediate effect. +++
+++ SSANGYONG has always been a bit of an alternative to the budget brand mainstream here in the UK, perhaps one of the reasons the Korean SUV specialist firm found itself narrowly escaping liquidation in 2022. Now SsangYong is on the road back under a new name : KGM. Bought by Korea’s KG Group last year, the firm had toyed with the idea of relaunching the SsangYong brand globally as ‘KG Mobility’. After some customer and industry expert feedback however, the firm has decided simply ‘KGM’ would suffice for Europe with the full ‘KG Mobility’ title being used in Korea. The ‘dragon wing’ logo used by SsangYongs will continue on KGM cars. The first car to wear the KGM branding could be the facelifted Tivoli, which will be launched in September. Elsewhere in KGM’s lineup we could see the Musso pick-up, Korando and Rexton all receive facelifts to incorporate the new branding. Further down the line it’s unclear how KG Group’s acquisition of SsangYong and the subsequent name change will affect the firm’s plans for electrification. There have been rumors of an all-electric pick-up to rival the likes of the Maxus T90EV, which gained traction with a chunky concept called the O100 at the Seoul Motor Show this year. This was joined by 2 other concept cars, the F100 SUV (which could potentially replace the Korando) and the KR10 crossover, all utilising pure-electric technology. +++
+++ VOLKSWAGEN is “full steam ahead” with the development of a sub-€22.000 (Dutch pricing) electric ID.1 hatch that will arrive in the next 5 years as part of a renewed push by car firms to produce affordable electric models. The new EV will serve as a spiritual successor to the e-Up city car and is set to offer a similar combination of compact packaging and back-to-basics technology. Using a new bespoke electric platform that will underpin similar models from sibling brands Cupra and Skoda, the ID.1 will sit below the production version of the recently revealed ID.2all concept, which VW is aiming to sell in the Netherlands for around €27.000. Volkswagen Group chief financial officer Arno Antlitz recently said he believes the firm can deliver electric cars at this price point, citing the emergence of cheaper battery materials and production methods. “For the time being, we’re quite confident that we can achieve that price point”, he said. “There are a lot of innovations coming on the technical side. This car will have the first in-house battery cells from our Valencia plant. We’re just ramping up. We will have much more scale by then. We have also seen a slight improvement or relief on the raw material cost. Look at lithium: it came down. Nickel came down. So from this perspective, we’re quite confident that we can achieve that €27.000 target and, at the same time, have a decent margin”. Antlitz’s comments referred specifically to the production viability of the ID.2, but such developments could have huge implications for the feasibility of the mooted ID.1. Details of the new car’s architecture have yet to be divulged, but it will be distinct from the MEB Entry platform that will be shared by the ID.2, Cupra Raval and Skoda’s compact crossover, which will all be built in Spain from 2025. The new platform will be developed by the Volkswagen Group, with Skoda understood to be playing a key role, and be designed for vehicles with interior space broadly similar to that of the Polo. The model’s name has yet to be finalised. However, Volkswagen brand boss Thomas Schäfer has refused to rule out ID.1 or ID.Polo, although he has said the use of classic model names will be reserved for true ‘successors’ to the original. That could be determined by whether the forthcoming Euro 7 engine regulations will make it viable for Volkswagen to develop a next-generation combustion-engined Polo. The ID.1 will be an urban-focused machine so range will be less of an issue than with many EVs, which will enable it to have a relatively small battery. Volkswagen has developed a 38 kWh lithium-iron-phosphate battery for the ID.2all and that is likely to be the largest capacity considered for the new model. It would still potentially allow for a range of just under 320 km, which would be competitive with the likes of the Mini Electric and the Fiat 500e. Battery development is key to lowering the price of the car, with the Volkswagen Group putting a major emphasis on developing unified battery cell technology that can be applied across all its brands, and could potentially reduce costs by up to 50%. Different chemistries with varying properties would then be used for each tier, so entry-level models could use materials that are cheaper but offer less energy density and can’t be charged as quickly. Production will also be a vital factor in reducing costs. Schäfer has implied that the model could be built in markets such as India, where the VW Group has production facilities and the cost of manufacturing is cheaper. However, Schäfer has hinted that it will be offered in Europe and tariff rules mean some local production is possible. +++
