Jump to content
  • William Maley
    William Maley

    What Does Cadillac Have In Mind After Their Product Offensive?

      There is a possible halo car, along with electrification plans

    Cadillac has some ambitious product plans. Starting with the debut of the XT4 at the New York Auto Show, Cadillac will be launching a new vehicle every six months by 2022. This includes a large crossover, a replacement for the ATS/CTS, and a new Escalade. Once the brand finishes this offensive, the brand "can, candidly, generate some growth, generate some revenue, put volume through our dealer organization so they can also invest in the elevation of the brand, all those logical things," said Cadillac President Johan de Nysschen.

    One of those possible elevation plans is a "halo vehicle." According to Automotive News, the model might not necessarily be a car. Also in the cards is Cadillac releasing a number of electrified vehicles as part of GM's plan of introducing 20 new all-electric or fuel-cell models by 2023. de Nysschen said the brand is expected to receive a "disproportionate share" of those models.

    "Since these new technologies are pricey, it really begins to make a lot of common sense, not in all cases, to roll out some of them in Cadillac first. We therefore see it as a great opportunity for Cadillac to take the lead from GM with rolling out these things. Not only for the company and economically commercializing these new technologies, but also for the brand elevation it will give to Cadillac."

    Source: Automotive News (Subscription Required)



    User Feedback

    Recommended Comments



    So there's an announced plan for the next 3 years --a new vehicle about every 6 months--, only the first one is out.... but it's time to talk about 2023???????????

    Share this comment


    Link to comment
    Share on other sites

    Piecing together the various messaging coming out. I would expect the halo vehicle to be a large crossover / SUV, probably called Escala.  Look for the interior to be a productionized version of the Escala concept. 

    One thing to note about the recent news that "Escala" is going into production.  No one ever said it would be a car.  I could be, it might not be. 

    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites

    Since the 1980s and 90s are long over, who said it could NOT be the next SUV/CUV as the halo car for Cadillac?

    Think about this: the halo car concept as a top of the line sedan is obsolete.  Of course, that does NOT mean that the CT6 should disappear.  Indeed it needs to continue.  The real question is whether an XT7 or an Escalade will be Cadillac's halo vehicle for the next decade or two.  That sounds weird in the face of the S-Class, the 7 series and the Lexus LS, but there is no guarantee that those large luxury RWD sedans will stay as the halo cars of their respective car marques.

    • Like 1

    Share this comment


    Link to comment
    Share on other sites

    Escalade...

    Escala...

    Yeah...just by the name, I could see it being a SUV.  Ill just be grateful that the actual name of Escala makes it and Johan does NOT change it to an alphanumeric.

    I have no real concerns if the Halo vehicle of Cadillac is indeed a SUV. However, I DO want Cadillac to produce a Ciel!  

    A Cien would be nice too, but I really really would prefer that a Ciel would be a part of a Cadillac portfolio. And an El Miraj waaaay before a Cien gets a red light. If a Ciel and an El Miraj have to be lower on the Halo vehicle scale due to a Halo vehicle being a SUV...I gots NO PROBLEMS!!!! 

    • Like 1

    Share this comment


    Link to comment
    Share on other sites

    I could see the Escala being a 4dr fastback coupe version of the Escalade... 

    Edited by Cubical-aka-Moltar
    • Upvote 3

    Share this comment


    Link to comment
    Share on other sites

    I wish Cadillac would have introduced the XT5 and the new XT4 on a version of the Alpha platform instead of the FWD based models they have now. They would be more competitive with REAL luxury crossovers like the Stelvio and the MB models leaving Buick to do the luxed up FWD based crossovers giving  Cadillac a more Premium image. With the Sigma platform they had the right idea having the CTS and original SRX based on the same RWD based platform. That first SRX drove and handled wonderfully much better then any nose heavy FWD based model can.

    • Upvote 3

    Share this comment


    Link to comment
    Share on other sites
    19 minutes ago, Carguy said:

    I wish Cadillac would have introduced the XT5 and the new XT4 on a version of the Alpha platform instead of the FWD based models they have now. They would be more competitive with REAL luxury crossovers like the Stelvio and the MB models leaving Buick to do the luxed up FWD based crossovers giving  Cadillac a more Premium image. With the Sigma platform they had the right idea having the CTS and original SRX based on the same RWD based platform. That first SRX drove and handled wonderfully much better then any nose heavy FWD based model can.

     

    But then certain Mercedes lovers would harp on Cadillac for not selling at the volumes they sell now.  I never will understand why people set different standards for Cadillac than they set for Mercedes. 

    • Upvote 2

    Share this comment


    Link to comment
    Share on other sites
    1 hour ago, Drew Dowdell said:

     

    But then certain Mercedes lovers would harp on Cadillac for not selling at the volumes they sell now.  I never will understand why people set different standards for Cadillac than they set for Mercedes. 

    Why would Cadillac sell at lesser volumes?  I could argue if they had done more rear drive products their sales would be higher.  SRX sales didn’t increase because they switched it to fwd, they went up because they cut the price $10,000.   Cut the CTS down to $34,995 and the ATS to $28,995 and they would start to sell too.  The XT5 sells because it is $12,000 less than an X5 or GLE and because Cadillac has no other crossover in the showroom when most luxury brands have 3 or 4.

    Waaaay back in 2002 Cadillac said we need to scrap the front wheel drive and the platform sharing with large Buicks and build globally competitive product with ride and handling luxury buyers expect.  They seem to have forgotten the mission, and they never really executed it right in the first place.

    And this is the big challenge Cadillac has, is execution.  We can talk about will Escala be a crossover coupe, Panamera competitor, 7 seat SUV, etc.  But can they actually get the mechanics, interior, styling, and build quality all spot on? Or will there he corners cut?

    • Like 2

    Share this comment


    Link to comment
    Share on other sites
    1 minute ago, smk4565 said:

    Why would Cadillac sell at lesser volumes?  

    You tell me.  The XT5 outsold the GLC and the X3 individually that it is priced against.   RWD introduces packaging issues for the passenger compartment. Cadillac does what it always has... offer a size, comfort, and power advantage over the German imports for the of the same price. 

    The XT4 will do the same against the cramped and tiny GLA. 

    You can't get over the fact that people don't shop for cars with a measuring tape, but with their checkbook.  If you're writing a check for $35k or $45k, you don't care what the exterior length is... you want the most comfort and amenities for your dollar. Cadillac offers that. 

    • Thanks 1
    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites
    3 hours ago, Drew Dowdell said:

    You tell me.  The XT5 outsold the GLC and the X3 individually that it is priced against.   RWD introduces packaging issues for the passenger compartment. Cadillac does what it always has... offer a size, comfort, and power advantage over the German imports for the of the same price. 

    The XT4 will do the same against the cramped and tiny GLA. 

    You can't get over the fact that people don't shop for cars with a measuring tape, but with their checkbook.  If you're writing a check for $35k or $45k, you don't care what the exterior length is... you want the most comfort and amenities for your dollar. Cadillac offers that. 

    But the XT5 is the size of a GLE and the XT4 is the size of a GLC.  The Highlander offers more room and more power then an XT4 but they aren't really competitors per se.  Size per dollar ratio should be Chevy's game, not Cadillac's.   And globally, GLC vs XT5 isn't even close, GLC beats it like 3 or 4 to 1.  

    I don't think RWD has packaging problems, you can stretch the wheelbase on a rwd car, and no one uses a center rear seat in a sedan and on an SUV the floor is higher anyway.  Plus on a FWD/AWD car you still have to run a drive axle to the rear anyway.  And the Germans have more power/acceleration across the board than Cadillac, every Cadillac SUV has 1 engine choice, most Germans have 3 or 4 even.

    And as far as price goes, GM has 3 brands to offer square footage per dollar, Cadillac doesn't have to do that.   And expensive doesn't mean you can't have volume.  Cadillac in the 60s and 70s glory days were expensive and they had volume, Mercedes and BMW have volume, Tesla has pretty good volume for a $100k car, etc.  It can be done.

    Share this comment


    Link to comment
    Share on other sites
    22 minutes ago, smk4565 said:

    But the XT5 is the size of a GLE and the XT4 is the size of a GLC....

     

    4 hours ago, Drew Dowdell said:

    You can't get over the fact that people don't shop for cars with a measuring tape...

     

    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites
    17 minutes ago, smk4565 said:

    But the XT5 is the size of a GLE and the XT4 is the size of a GLC.  The Highlander offers more room and more power then an XT4 but they aren't really competitors per se.  Size per dollar ratio should be Chevy's game, not Cadillac's.   And globally, GLC vs XT5 isn't even close, GLC beats it like 3 or 4 to 1.  

    I don't think RWD has packaging problems, you can stretch the wheelbase on a rwd car, and no one uses a center rear seat in a sedan and on an SUV the floor is higher anyway.  Plus on a FWD/AWD car you still have to run a drive axle to the rear anyway.  And the Germans have more power/acceleration across the board than Cadillac, every Cadillac SUV has 1 engine choice, most Germans have 3 or 4 even.

    And as far as price goes, GM has 3 brands to offer square footage per dollar, Cadillac doesn't have to do that.   And expensive doesn't mean you can't have volume.  Cadillac in the 60s and 70s glory days were expensive and they had volume, Mercedes and BMW have volume, Tesla has pretty good volume for a $100k car, etc.  It can be done.

    There is nothing wrong with offering square footage for the luxury dollar.  It's kinda what they've been known for for the past 80 years. You can buy some micro car with plastic seats from Germany or you can stretch out in American luxury for the same price.

    You know what is absolutely ridiculous? The "bigger" GLC (17.6) has a foot less cargo room than my tiny Encore (18.8). The GLC also has less headroom in all positions and less front leg room.  For being so much larger, the GLC only has 2 additional inches of rear leg room.  The Encore manages all of that while being about 14 inches shorter than the GLC.  RWD doesn't have packaging issues you say?

    For the same price as the GLC at Cadillac, you get an XT5 which is bigger than the GLC in nearly every dimension, still get all the luxury goodies, and aren't saddled with a lowly 4-cylinder.

    Keep in mind I don't even like the XT5 that much, but I can still recognize its success in the marketplace.

    Share this comment


    Link to comment
    Share on other sites

    You know what? I almost bought a GLC... Nevermind the fact that it's $15k more than my Encore.... When I whipped out the tape measure, the Encore being shorter made it the winner.

    Share this comment


    Link to comment
    Share on other sites

    If we are playing the price game, the the CT6 is an E-class competitor, the CTS is a C-class competitor and the ATS is a CLA competitor.  If Cadillac wants to play the 5-series size for 3-series price strategy of the original CTS, then just go all in on that and make that the strategy.  But they can't make their mind up what they want to be.  And maybe that is what they want to be, the XT7 will probably be GLS size for GLE money.  

    The more size for less money could work if you do it perfectly, but Lincoln is trying that "American sized" with a turbo V6 in a lot of cars and it isn't working.   Maybe Cadillac can use the same strategy and execute it better than Lincoln, but Cadillac has to commit to something, they can't even commit to a naming scheme.

    Share this comment


    Link to comment
    Share on other sites
    1 hour ago, Drew Dowdell said:

    For the same price as the GLC at Cadillac, you get an XT5 which is bigger than the GLC in nearly every dimension, still get all the luxury goodies, and aren't saddled with a lowly 4-cylinder.

    For the same price of an XT4 you can get a Highlander V6 that is roomier and more powerful, has a lot of the same equipment.  Doesn't mean it is better; for some buyers that value 3 row seating maybe it is.  For buyers that want luxury or style over a people mover the XT4 is better.  I get that different buyers have different needs and shop price and payment, not with a measuring tape.  But I still think Cadillac shouldn't be in the size = luxury game (as they were in the 1980s). 

    Share this comment


    Link to comment
    Share on other sites

    As far as how it lines up with the competition, the XT4 dimensions appear to be in the same range as the MKC, Q5, GLC, NX.  So solidly in the compact lux niche.   So there is room for a smaller XT3 to compete w/ the GLA, Q23, QX30, etc.

    Edited by Cubical-aka-Moltar

    Share this comment


    Link to comment
    Share on other sites
    12 minutes ago, Cubical-aka-Moltar said:

    So there is room for a smaller XT3 to compete w/ the GLA, Q23, QX30, etc.

    Ugh. There's "room" for Mercedes to build a 3/4-ton diesel 4x4 pick-up and Rolls Royce to build an entry-level $90K compact, doesn't mean they "should".

    Many critics labor under the impression that for Cadillac to be 'complete' --yet, of course, remaining true to being Cadillac and not copying anyone else-- that the brand has go into every segment every one of their competitors are in. QX30 sold 1200 units in March, as yourself why a brand 'needs' to compete with that.

    Not remotely necessary OR advisable. Cadillac is a low-volume brand, there's really no business case to plug into every tier.

    No 'CT3', no 'XT3' - unnecessary distractions and money drains. Keep everything upmarket. CT5/XT4 should absolutely be the bottom of the Cadillac catalog.

    Share this comment


    Link to comment
    Share on other sites
    54 minutes ago, Cubical-aka-Moltar said:

    As far as how it lines up with the competition, the XT4 dimensions appear to be in the same range as the MKC, Q5, GLC, NX.  So solidly in the compact lux niche.   So there is room for a smaller XT3 to compete w/ the GLA, Q23, QX30, etc.

    Why are we still comparing on direct size, particularly exterior dimensions, and not on price?  The XT4 is priced against the GLA and is a reasonable, but not excessively so, amount roomier.  Not so much that you think you're buying the next size class up, but enough that you can put your friends in the back where you can't with the GLA.  Their base prices will only be about $1,000 or less apart.

    The XT5 is priced directly against the GLC. From memory, their starting prices are less than $500 apart. The XT5 is roomier inside than the GLC. 

    Why is having more space with equal or better luxury being considered a disadvantage for Cadillac?!?! It makes no sense!

    People like to rage on the ATS for the small back seat, but the back seat of the ATS is positively Fleetwood like compared to the CLA that Mercedes offers at the same price.  Let's see, I have $38k to spend, do I get a mediocre '96 Taurus-wannabe with Front wheel drive and cramped interior or do I get a distinctive car, slightly larger, with more power and rear wheel drive that rides on what is generally considered to be one of the best handling platforms in production today? Well the Cadillac is slightly longer outside, so that must be in the next size class up, I better go with the '96 Taurus wannabe. Tough call...:rolleyes:

     

    Share this comment


    Link to comment
    Share on other sites

    Price is such a variable thing--there is a wide range for each model with overlap--while dimensions are fixed and easy to compare.   If you use price only to compare, then you get people comparing an XT4 to a Highlander like smk did...however, comparing price within the reality context (size and class--i.e. compare the XT4 to other compact luxury crossovers) makes sense..

    Edited by Cubical-aka-Moltar

    Share this comment


    Link to comment
    Share on other sites
    6 minutes ago, Cubical-aka-Moltar said:

    Price is such a variable thing--there is a wide range for each model--while dimensions are fixed and easy to compare. 

    Sure, price is variable... budget generally isn't. Someone walking in to buy a $38k entry-luxury AWD crossover isn't going to suddenly pony up to the $42,900 it takes to get into a GLC 4Matic. That's more than a 10% price increase and something like that just doesn't happen much.  So if you're stuck at a specific max price, as most people are, that is generally going to eliminate the next size up at Mercedes, BMW, and Audi.  So at Cadillac, you end up getting more room and more power for your dollar.

    I'm not the biggest fan of the XT4, it'll do well, but it didn't light my fire the way I wish it did.  Still, if I'm spending $38k on a crossover and my choices are XT4, GLA, Q3, or X2 (X3 is $42.6k for AWD), I'll pick the XT4 every day of the week and twice on Sundays.  It just offers more room, more power, and more amenities for the same price.   The GLC and X3 are out of my budget so there is no point comparing them.... and if they are in my budget, then Cadillac offers another level of size, comfort, and power that still exceeds the imports.   I'll point out that NONE of the Germans base entries in the GLA/X2/Q3 price class offer more power than the XT4, only BMW comes close.   Yes there are option up engines available on some, but as noted in this article, Cadillac isn't done with releases yet.  For $38k, all you're getting from MB or Audi is about 200 horsepower... about the same as a Honda Civic SI. Also, none of the Germans can claim any sort of handling advantage of RWD... Cadillac, the Germans, Infiniti, Lexus, are all front drivers.

    People simply don't shop for vehicles with tape measures. If you were shopping in this class, would you reject an option for being 3" bigger than its competition? I don't think any sane person would. The only reason to pick one of the Germans over the Cadillac (or Infiniti QX30 for that matter, it is $4k cheaper than the virtually identical GLA) is badge snobbery, and for that, there is nothing I can say that will convince an irrational person to do a rational thing.

    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites

    I'm not talking about how consumers compare, but how journos/reviewers and magazines compare vehicles (i.e. sites like this)...comparisons are almost always against other vehicles in the same size category (compact, midsize, fullsize, etc) and class (mainstream, premium, luxury, etc).   The competition of a particular model are other models at a similar price point within it's size category and class.    

    As far as how consumers shop, not sure if most of them look at the total price or more at the monthly payment....

    As far as measuring vehicles, I do know people that have done that..a buddy of mine wanted a new sedan for his wife and it had to be 185 inches or less, since anything longer wouldn't fit in their garage.   (I sort of have that problem--I really couldn't fit anything over 190 in my garage and still be able to walk in front of it and open the hatch and walk behind with the garage door shut).   

    Anyway, back on topic, I wouldn't be surprised if Cadillac adds an XT3 and XT7 over the next few years...

    Edited by Cubical-aka-Moltar

    Share this comment


    Link to comment
    Share on other sites



    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.




  • Similar Content

    • By William Maley
      On Wednesday, Honda CEO Takahiro Hachigo announced plans for the future of the company's automobile division. Efficiency was the theme in Hachigo's speech in terms of their lineup. manufacturing, and driving.
      One of the initiatives put forth by Hachigo was to cut down on the number of variations on offer in their global lineup, along with the dropping of various regional nameplates.
      "However, as a result of accommodating regional needs somewhat excessively in each individual region, we recognize that the number of models and variations at the trim and option level have increased and our efficiency has declined. So, we will undertake initiatives to further strengthen our inter-regional coordination and collaboration and advance our art of making automobiles in order to simultaneously increase the attractiveness and efficiency of both global and regional models," he said.
      "With this initiative, by 2025, we will reduce the total number of variations at the trim and option level for our global models to one-third of what we have now.In addition, we will increase efficiency by eliminating and consolidating some similar regional models into even more competent models shared across multiple regions."
      This will allow Honda to simplify model allocation at their various assembly plants around the road. According to Hachigo, this will allow the company to achieve "100 percent capacity utilization worldwide by 2020" and cut production costs by 10 percent by 2025. 
      Part of that initiative involves a new modular architecture that will debut in a global model next year. No details on the vehicle were provided, but Honda says the goal of the architecture "is to commonize about 70 percent of the components" used in a vehicle such as the engine bay and passenger cabin.
      Honda is also planning to have two-thirds of their global lineup electrified by 2030. Furthermore, it wants 100 percent of its European lineup to be electrifed by 2025. To do this, Honda is readying a new electric city car known as the e, along with deploying their two-motor i-MMD hybrid setup to all of their models in Europe. In the U.S. Honda is planning to launch more hybrid models, and increase their electric car lineup with some help from General Motors.
      “In North America, we will jointly develop battery components with General Motors and introduce highly-competitive battery EVs in the market,” said Hachigo.

      Press Release is on Page 2
      Summary of Honda CEO Speech on Automobile Business Direction
      Remarks by Takahiro Hachigo, President & CEO, Honda Motor Co., Ltd. May 8, 2019
      Honda has been working on two top-priority management challenges in the midst of abrupt changes in the global business environment surrounding the automobile industry: to strengthen the structure of our automobile business and to further increase the speed of business transformation for future generations.
      So, today, I would like to introduce some initiatives we are taking for our automobile business, especially how we are strengthening the structure of our automobile business, the direction we are taking with electrification, as well as some progress we have made to date.
      Strengthening automobile business structure 
      Ever since I became the president of the company, I have been conveying the message that we will make Honda strong by creating strong products and also by strengthening our inter-regional coordination and collaboration. We put special emphasis on the strengthening of our global models, which have been the source of Honda's core competence, and also the enhancement of our regional models.
      As a result, we currently have the five global models, namely Civic, Accord, CR-V, Fit/Jazz and Vezel/HR-V, and these five strong models now account for 60% of our global automobile sales. At the same time, our regional models such as the N Series for Japan, Pilot for North America and Crider for China are playing an important role as a source of growth for each respective region.
      However, as a result of accommodating regional needs somewhat excessively in each individual region, we recognize that the number of models and variations at the trim and option level have increased and our efficiency has declined. So, we will undertake initiatives to further strengthen our inter-regional coordination and collaboration and advance our art of making automobiles in order to simultaneously increase the attractiveness and efficiency of both global and regional models.
      Strengthening inter-regional coordination and collaboration
      As for inter-regional coordination and collaboration, under the new operational structure we adopted for our automobile operations starting from April, we began reviewing and sharing the product lineup by grouping some of our six regions outside Japan based on a similarity of key factors, such as market needs and environmental regulations. With this initiative, by 2025, we will reduce the total number of variations at the trim and option level for our global models to one-third of what we have now. In addition, we will increase efficiency by eliminating and consolidating some similar regional models into even more competent models shared across multiple regions.
      Advancement of our art of making automobiles (automobile development) 
      As for the advancement of automobile development, since I became the president, we have been increasing the efficiency and speed of our Monozukuri (the art of making things) by innovating the entire process, from planning and development all the way through production, by enabling the S-E-D-B (sales, manufacturing, R&D, purchasing*1) functions to collaborate beyond the boundaries of their divisions.
      Moreover, we have already introduced the Honda Architecture in our development.
      The Honda Architecture is a company-wide initiative which will increase the efficiency of development and expand parts-sharing for our mass-production models. The first model being developed with this new method will be the global model we are launching next year. And we will continue increasing the number of models to which we apply this new architecture.
      With the strengthening of global and regional models through inter-regional coordination and collaboration and with the introduction of the Honda Architecture, by 2025, we will reduce the number of manhours we use for the development of mass-production models by 30%, and we will repurpose those manhours to accelerate our research and development in advanced areas for the future. In this way, we can continue creating new technologies which will support the future of Honda.
      Strengthening our operational structure in the area of production 
      In addition to the area of development, we are further strengthening our operational structure in the area of production as well, so that we can create strong products with high efficiency.
      We are making steady progress in optimizing our production capacity in all regions. When this is complete, we are expecting to see that our global capacity utilization rate, excluding China, will increase from 90% recorded in 2018, and we will be producing at full capacity by 2022.
      In China, the third plant of Dongfeng Honda became newly operational, and this put us in a position where we can definitely accommodate market demand in China. We believe that this progress we made paved the way for the optimization of our global production capacity.
      From here onward, we think it is important to increase our competitiveness by increasing the efficiency of our production system in North America.
      For our business in North America, while keeping pace with sales expansion, we enhanced our model lineup and established a flexible production system where our plants sometimes produce various models in duplication to accommodate changes in market demand. However, as a result of the pursuit of high flexibility, an increase in the investment amount and a decline in production efficiency started to become an issue. Therefore, in North America as well, we will reduce the number of variations at the trim and option level, and at the same time, we will simplify the production model allocation at each plant. Through this initiative, we will re-establish a highly-efficient production system and realize the growth of North American business through the pursuit of quality.
      By implementing these initiatives to increase production efficiency in each region, we are expecting to reduce global cost in the area of production by 10% by 2025, compared to the cost recorded in 2018.
      Through all these initiatives I have mentioned, we will steadily strengthen the structure of our automobile business and realize the solidification of our existing automobile businesses by 2025, and, at the same time, we will accelerate our preparation for the future.
      Direction for the electrification of our automobile products
      Striving to realize a carbon-free society, Honda set a goal to electrify two-thirds of our global automobile unit sales by 2030.
      When we talk about the introduction of electrified vehicles, there are two perspectives. One is the improvement of fuel economy, and the other is zero emissions. Regulations for the Corporate Average Fuel Economy (CAFE) standards are becoming increasingly stringent in every country around the world and complying with CAFE standards is one of the most important challenges for the automobile industry. At Honda, in light of the required infrastructure and how people use automobiles, we believe that hybrid technology is, at this moment, the most effective way for us to comply with CAFE standards. Therefore, we will electrify our products mainly with hybrid technologies. By increasing sales of our hybrid models all around the world, Honda will contribute to the global environment through the improvement of fuel economy.
      To this end, we will expand the application of our 2-motor hybrid system to the entire lineup of Honda vehicles. In addition to the 2-motor hybrid system which is compatible with mid-to-large-sized vehicles, we developed a new, more compact 2-motor hybrid system suitable for small-sized vehicles. This small-sized 2-motor hybrid system will be adopted first by the all-new Fit which we are planning to exhibit as a world premiere at the Tokyo Motor Show this fall.
      In addition to the expansion of the lineup of products equipped with the 2-motor hybrid system, we also will expand the application of the 2-motor hybrid system on a global basis. With that, by 2022, we are expecting to reduce the cost of the 2-motor hybrid system by 25% compared to the cost of this system in 2018.
      As for zero emission vehicles, with our battery EVs we will comply with the Zero Emission Vehicle (ZEV) program being adopted by California and other states in the U.S. and China's New Energy Vehicle (NEV) mandate. We will efficiently introduce our battery EVs to the market by selecting the most appropriate partners and resources to satisfy the different needs in each region.
      In North America, we will jointly develop battery components with General Motors and introduce highly-competitive battery EVs in the market.   
      In China, in order to keep up with the fast speed of electrification, we have already begun introducing battery EV models developed together with our local joint venture companies in China. While envisioning the introduction of battery EV models from the Honda brand, we will continue utilizing local resources in China and introduce more battery EV models in a timely manner to fulfill local market needs in China.
      In Europe and Japan, we will introduce the Honda e, a new battery EV model, which was recently introduced as a prototype at the Geneva Motor Show.
      To summarize, Honda will popularize and improve the business feasibility of electrified vehicles by focusing on hybrid vehicles and battery EVs.
      Changes in operational structure
      In order to ensure the solid implementation of these initiatives I just introduced for our automobile business, we renewed our operational structure as of April. The aims of this structural change are to establish an organization which brings all regional operations together to strongly facilitate inter-regional coordination and collaboration and to increase the speed of our business operations by enabling prompt decisions and prompt execution.
      Today, I introduced our initiatives to strengthen our automobile business structure and the direction of our electrification. Under the new organizational structure, we will realize our goals with a keen sense of speed. 
      Closing
      As we stated in our 2030 Vision, Honda is striving to grow through the pursuit of quality so that we can fulfill our vision to "Serve people worldwide with the joy of expanding their life's potential."
      Honda will continue taking on new challenges while being driven by strong passion, so that we can continue to be a company that society wants to exist even in 2050 after Honda becomes more than 100 years old. 
      *1 S-E-D-B: Sales, Engineering (Manufacturing), Development (R&D), Buying (Purchasing)

      View full article
    • By William Maley
      On Wednesday, Honda CEO Takahiro Hachigo announced plans for the future of the company's automobile division. Efficiency was the theme in Hachigo's speech in terms of their lineup. manufacturing, and driving.
      One of the initiatives put forth by Hachigo was to cut down on the number of variations on offer in their global lineup, along with the dropping of various regional nameplates.
      "However, as a result of accommodating regional needs somewhat excessively in each individual region, we recognize that the number of models and variations at the trim and option level have increased and our efficiency has declined. So, we will undertake initiatives to further strengthen our inter-regional coordination and collaboration and advance our art of making automobiles in order to simultaneously increase the attractiveness and efficiency of both global and regional models," he said.
      "With this initiative, by 2025, we will reduce the total number of variations at the trim and option level for our global models to one-third of what we have now.In addition, we will increase efficiency by eliminating and consolidating some similar regional models into even more competent models shared across multiple regions."
      This will allow Honda to simplify model allocation at their various assembly plants around the road. According to Hachigo, this will allow the company to achieve "100 percent capacity utilization worldwide by 2020" and cut production costs by 10 percent by 2025. 
      Part of that initiative involves a new modular architecture that will debut in a global model next year. No details on the vehicle were provided, but Honda says the goal of the architecture "is to commonize about 70 percent of the components" used in a vehicle such as the engine bay and passenger cabin.
      Honda is also planning to have two-thirds of their global lineup electrified by 2030. Furthermore, it wants 100 percent of its European lineup to be electrifed by 2025. To do this, Honda is readying a new electric city car known as the e, along with deploying their two-motor i-MMD hybrid setup to all of their models in Europe. In the U.S. Honda is planning to launch more hybrid models, and increase their electric car lineup with some help from General Motors.
      “In North America, we will jointly develop battery components with General Motors and introduce highly-competitive battery EVs in the market,” said Hachigo.

      Press Release is on Page 2
      Summary of Honda CEO Speech on Automobile Business Direction
      Remarks by Takahiro Hachigo, President & CEO, Honda Motor Co., Ltd. May 8, 2019
      Honda has been working on two top-priority management challenges in the midst of abrupt changes in the global business environment surrounding the automobile industry: to strengthen the structure of our automobile business and to further increase the speed of business transformation for future generations.
      So, today, I would like to introduce some initiatives we are taking for our automobile business, especially how we are strengthening the structure of our automobile business, the direction we are taking with electrification, as well as some progress we have made to date.
      Strengthening automobile business structure 
      Ever since I became the president of the company, I have been conveying the message that we will make Honda strong by creating strong products and also by strengthening our inter-regional coordination and collaboration. We put special emphasis on the strengthening of our global models, which have been the source of Honda's core competence, and also the enhancement of our regional models.
      As a result, we currently have the five global models, namely Civic, Accord, CR-V, Fit/Jazz and Vezel/HR-V, and these five strong models now account for 60% of our global automobile sales. At the same time, our regional models such as the N Series for Japan, Pilot for North America and Crider for China are playing an important role as a source of growth for each respective region.
      However, as a result of accommodating regional needs somewhat excessively in each individual region, we recognize that the number of models and variations at the trim and option level have increased and our efficiency has declined. So, we will undertake initiatives to further strengthen our inter-regional coordination and collaboration and advance our art of making automobiles in order to simultaneously increase the attractiveness and efficiency of both global and regional models.
      Strengthening inter-regional coordination and collaboration
      As for inter-regional coordination and collaboration, under the new operational structure we adopted for our automobile operations starting from April, we began reviewing and sharing the product lineup by grouping some of our six regions outside Japan based on a similarity of key factors, such as market needs and environmental regulations. With this initiative, by 2025, we will reduce the total number of variations at the trim and option level for our global models to one-third of what we have now. In addition, we will increase efficiency by eliminating and consolidating some similar regional models into even more competent models shared across multiple regions.
      Advancement of our art of making automobiles (automobile development) 
      As for the advancement of automobile development, since I became the president, we have been increasing the efficiency and speed of our Monozukuri (the art of making things) by innovating the entire process, from planning and development all the way through production, by enabling the S-E-D-B (sales, manufacturing, R&D, purchasing*1) functions to collaborate beyond the boundaries of their divisions.
      Moreover, we have already introduced the Honda Architecture in our development.
      The Honda Architecture is a company-wide initiative which will increase the efficiency of development and expand parts-sharing for our mass-production models. The first model being developed with this new method will be the global model we are launching next year. And we will continue increasing the number of models to which we apply this new architecture.
      With the strengthening of global and regional models through inter-regional coordination and collaboration and with the introduction of the Honda Architecture, by 2025, we will reduce the number of manhours we use for the development of mass-production models by 30%, and we will repurpose those manhours to accelerate our research and development in advanced areas for the future. In this way, we can continue creating new technologies which will support the future of Honda.
      Strengthening our operational structure in the area of production 
      In addition to the area of development, we are further strengthening our operational structure in the area of production as well, so that we can create strong products with high efficiency.
      We are making steady progress in optimizing our production capacity in all regions. When this is complete, we are expecting to see that our global capacity utilization rate, excluding China, will increase from 90% recorded in 2018, and we will be producing at full capacity by 2022.
      In China, the third plant of Dongfeng Honda became newly operational, and this put us in a position where we can definitely accommodate market demand in China. We believe that this progress we made paved the way for the optimization of our global production capacity.
      From here onward, we think it is important to increase our competitiveness by increasing the efficiency of our production system in North America.
      For our business in North America, while keeping pace with sales expansion, we enhanced our model lineup and established a flexible production system where our plants sometimes produce various models in duplication to accommodate changes in market demand. However, as a result of the pursuit of high flexibility, an increase in the investment amount and a decline in production efficiency started to become an issue. Therefore, in North America as well, we will reduce the number of variations at the trim and option level, and at the same time, we will simplify the production model allocation at each plant. Through this initiative, we will re-establish a highly-efficient production system and realize the growth of North American business through the pursuit of quality.
      By implementing these initiatives to increase production efficiency in each region, we are expecting to reduce global cost in the area of production by 10% by 2025, compared to the cost recorded in 2018.
      Through all these initiatives I have mentioned, we will steadily strengthen the structure of our automobile business and realize the solidification of our existing automobile businesses by 2025, and, at the same time, we will accelerate our preparation for the future.
      Direction for the electrification of our automobile products
      Striving to realize a carbon-free society, Honda set a goal to electrify two-thirds of our global automobile unit sales by 2030.
      When we talk about the introduction of electrified vehicles, there are two perspectives. One is the improvement of fuel economy, and the other is zero emissions. Regulations for the Corporate Average Fuel Economy (CAFE) standards are becoming increasingly stringent in every country around the world and complying with CAFE standards is one of the most important challenges for the automobile industry. At Honda, in light of the required infrastructure and how people use automobiles, we believe that hybrid technology is, at this moment, the most effective way for us to comply with CAFE standards. Therefore, we will electrify our products mainly with hybrid technologies. By increasing sales of our hybrid models all around the world, Honda will contribute to the global environment through the improvement of fuel economy.
      To this end, we will expand the application of our 2-motor hybrid system to the entire lineup of Honda vehicles. In addition to the 2-motor hybrid system which is compatible with mid-to-large-sized vehicles, we developed a new, more compact 2-motor hybrid system suitable for small-sized vehicles. This small-sized 2-motor hybrid system will be adopted first by the all-new Fit which we are planning to exhibit as a world premiere at the Tokyo Motor Show this fall.
      In addition to the expansion of the lineup of products equipped with the 2-motor hybrid system, we also will expand the application of the 2-motor hybrid system on a global basis. With that, by 2022, we are expecting to reduce the cost of the 2-motor hybrid system by 25% compared to the cost of this system in 2018.
      As for zero emission vehicles, with our battery EVs we will comply with the Zero Emission Vehicle (ZEV) program being adopted by California and other states in the U.S. and China's New Energy Vehicle (NEV) mandate. We will efficiently introduce our battery EVs to the market by selecting the most appropriate partners and resources to satisfy the different needs in each region.
      In North America, we will jointly develop battery components with General Motors and introduce highly-competitive battery EVs in the market.   
      In China, in order to keep up with the fast speed of electrification, we have already begun introducing battery EV models developed together with our local joint venture companies in China. While envisioning the introduction of battery EV models from the Honda brand, we will continue utilizing local resources in China and introduce more battery EV models in a timely manner to fulfill local market needs in China.
      In Europe and Japan, we will introduce the Honda e, a new battery EV model, which was recently introduced as a prototype at the Geneva Motor Show.
      To summarize, Honda will popularize and improve the business feasibility of electrified vehicles by focusing on hybrid vehicles and battery EVs.
      Changes in operational structure
      In order to ensure the solid implementation of these initiatives I just introduced for our automobile business, we renewed our operational structure as of April. The aims of this structural change are to establish an organization which brings all regional operations together to strongly facilitate inter-regional coordination and collaboration and to increase the speed of our business operations by enabling prompt decisions and prompt execution.
      Today, I introduced our initiatives to strengthen our automobile business structure and the direction of our electrification. Under the new organizational structure, we will realize our goals with a keen sense of speed. 
      Closing
      As we stated in our 2030 Vision, Honda is striving to grow through the pursuit of quality so that we can fulfill our vision to "Serve people worldwide with the joy of expanding their life's potential."
      Honda will continue taking on new challenges while being driven by strong passion, so that we can continue to be a company that society wants to exist even in 2050 after Honda becomes more than 100 years old. 
      *1 S-E-D-B: Sales, Engineering (Manufacturing), Development (R&D), Buying (Purchasing)
    • By Drew Dowdell
      Cadillac will be unveiling the Cadillac CT4 along with a V-series version on May 30th according to Motor1.
      Both the CT4 and CT5 ride on a second generation Alpha platform called Alpha 2.  The CT5 is offered in rear-wheel drive with all-wheel drive being an option. It is highly likely that the CT4 will get this same offering. 
      There is word that the V-series version of the Cadillac CT5 will also debut.  It is likely to pack the same 4.2-liter Blackwing V8 that is available in the CT6. The CT4 V-series is likely to get an uprated version of the 3.0TT.
      While the CT5 is more of a fastback style, the spyshots of the CT4 shows a more conventional sedan profile and an Escala style grille similar to the CT5's.
      The CT5 is likely to start in the high mid-$30k range while the CT4 will be aimed more at entry-level luxury buyers. 

      View full article
  • Social Stream

  • Today's Birthdays

    1. motorman
      motorman
      (85 years old)
  • Who's Online (See full list)

  • My Clubs

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...