William Maley

The Mercedes-Benz model of being all things to all people

After 20 years, Audi will be sending off the TT coupe and convertible into the great parking lot in the sky. During the brand's annual meeting today, Audi CEO Bram Schot said a new strategy focusing on sustainability means the brand has to cut a number of models that don't make economic sense. “There will be lots of things that we won’t do any more in the future, or things that we do less. We focus maximum resources on our key projects,” said Schot. This is part of an effort to get the brand back on track in terms of sales and profit after the diesel emission scandal which culminated in the arrest of former CEO Rupert Stadler and an 800 million euro ($895 million) fine. Schot did reveal that the TT would be replaced by a new "emotive" electric vehicle in the same price range. No other details were given. The TT isn't the only model on the chopping block. The R8 sportscar is being questioned as to whether or not it fits into Audi's new focus. Also, the successor to the A8 flagship may go all-electric. Source: Automotive News (Subscription Required) View full article

Guangzhou Automobile Group Co. (GAC) made a big splash at the Detroit Auto Show this year with a number of models destined for the U.S. The plan at the time was to begin talking with dealers at the National Automobile Dealers Association convention in March, with sales to follow early next year. But GAC has postponed plans of coming to the U.S. due to the trade war. In a statement issued to Bloomberg, GAC said “the escalation of China-U.S. trade frictions” and distribution “uncertainties” had made them decide to put their plans on hold. It's unclear how long this postponement will last, but it will likely be some months - maybe years. Many Chinese automakers have made pronouncements to sell vehicles in the U.S. for over a decade, with none coming to shore. As Automotive News notes, Chinese Automaker Zotye as recently as this month was still recruiting dealers and planning to begin sales in the U.S. late next year. Bloomberg reached out to other Chinese automakers, Great Wall: No immediate comment on whether or not it plans on adjusting its plans to coming to the U.S. Lynk & Co. (under the Geely umbrella): Spokesperson said they are "evaluating" plans for North America Source: Bloomberg, Automotive News (Subscription Required) View full article

Maven, General Motors' car-sharing service launched in 2016 will be ceasing operation in several cities in the U.S. The news was first broken by the Wall Street Journal on Monday and has been confirmed by a GM spokeswoman. Eight out of the seventeen markets that the service operates including Boston and Chicago will be closed down within the next few months. According to the spokeswoman, the shutdown is due to GM wanting to "concentrate on markets in which we have the strongest current demand and growth potential." Those markets in question include Detroit, Los Angeles, and Toronto. Another possible reason is the lack of awareness of Maven in the eight markets being shut down. There isn't enough demand for people wanting to use car-sharing or wanting to allow the use of their vehicles. Source: Wall Street Journal (Subscription Required), Automotive News (Subscription Required) View full article

Did you know that Mercedes-Benz has nearly 30 models on sale in the U.S. at the moment? Factor in the various engine choices and body styles and you're looking at nearly 90 different models. This is causing Mercedes-Benz and their dealers a number of headaches dealing with it. "It has gotten to the point of being just too much to manage customer model confusion, vehicle logistics and manufacturing. Each of these models require marketing support, education at the dealer level, even service and parts inventory," said Jeff Schuster, president of global forecasting at LMC Automotive. Mercedes is going to do something about it. Earlier this month, the German automaker told dealers at a national meeting in Las Vegas they would be cutting back on the number of models it offers within the next twelve months. "We are going to see models go away within the next 12 months. Within the next 90 days, we might see some of those announcements," according to one unnamed dealer who was at the meeting. The automaker also announced that it would be scaling back the number of options and equipment packages it offers. Poor selling options would be dropped, while popular ones would become "standard equipment on certain models" or tacked "onto existing feature packages." What models may get the ax? We know that the SLC roadster will be leaving the lineup next year due to slumping sales. Automotive News speculates the C-Class coupe/cabrio and S-Class coupe/cabrio could also go due to sales falling. Source: Automotive News (Subscription Required) View full article

There has been a prevailing thought about the likes of Uber and Lyft that once they switch from human drivers to self-driving vehicles, they would stand to see a significant reduction in overall operating costs. This possibly means consumers could see these services as an alternative to owning a vehicle. But a new study from the Massachusetts Institute of Technology (MIT) disputes that claim. Researchers Ashley Nunes and Kristen D. Hernandez examined the San Francisco market on the per-mile cost of an automated taxi service to owning a vehicle. They found an automated taxi would range between $1.58 and $6.01 per mile, while the conventional vehicle would be at $0.72 per mile. "When we started going into this work, we found there's a lot of hand-waving. There was a notion that 'All we have to do is remove the driver, assume a reduction in insurance, and there's our great number.' We said, 'Let's hold it up to scrutiny.' It didn't hold up," explained Nunes to Automotive News. The massive disparity gap isn't due to ownership or maintenance, rather a fundamental issue about the taxi market in general. Nunes said taxi operators drive too many miles without a paying customer - hence their higher costs. In San Francisco, the MIT researchers found a 52 percent utilization rate for ride-hailing. Even if they were able to reach 100 percent utilization, Nunes said they would still be "unable to provide a fare that's comparable to car ownership." "Their approach with the investment folks has been, 'Trust us, we'll figure this out and it'll be this great utopia where everyone is jumping from an Uber to a scooter to an air taxi.The future may well be all those things. But you need to demonstrate you can offer the service at a price point that consumers are willing and able to pay. Thus far, they are unable to do so," said Nunes. Source: Automotive News (Subscription Required) View full article

From the strange bedfellows' file; Hyundai and Kia have announced a joint investment of 80 million Euros (about $90 million) into Croatia-based Rimac Automobili. Rimac may be known to most people for the fast Concept One electric supercar - the vehicle which Richard Hammond had a serious crash when filming The Grand Tour. "The companies will work closely together to develop prototypes for an electric version of Hyundai Motor's N brand midship sports concept car and a high-performance fuel cell electric vehicle. Hyundai Motor Group will leverage the partnership to build on its existing R&D capabilities to meet its electrification plan, which includes deployment of 44 eco-friendly models by 2025," Hyundai said in a statement this week. Hyundai has been teasing the idea mid-ship sports car for the past few years with a number of Veloster based concepts like the RM16 N. Maybe something could come to fruition with the help of Rimac. What does Rimac get out of this deal? This will allow the company to grow into a Tier 1 supplier for the industry for electric components. Source: Hyundai, Rimac HYUNDAI MOTOR AND KIA MOTORS INVEST 80M EUR IN RIMAC AND ESTABLISH A TECHNOLOGY PARTNERSHIP Hyundai Motor to invest 64M EUR; Kia Motors to invest 16M EUR; Rimac and Hyundai Motor Group form a technical partnership to collaborate on two high-performance electric vehicles by 2020 SEOUL, ZAGREB, 14 May 2019 – Hyundai Motor Company and Kia Motors Corporation have jointly invested 80M Euros in Rimac Automobili (Rimac) - the Croatian high-performance electric vehicle technology and sportscar company. The companies have announced a strategic partnership to collaborate on the development of high-performance electric vehicles. With the new collaboration underway, Hyundai Motor Group aims to speed up its transition towards Clean Mobility and position itself as a global leader in driving this change in the industry. Rimac has established themselves as a leader in high-performance electric vehicle technology and as an electric sportscar manufacturer. The company continues to deliver EV technology supporting many industry partners, including Hyundai Motor Group, to accelerate their way towards an electric future. Hyundai Motor, Kia Motors and Rimac will work closely together to develop an electric version of Hyundai Motor’s N brand midship sports car and a high-performance fuel cell electric vehicle. “Rimac is an innovative company with outstanding capabilities in high-performance electric vehicles,” said Euisun Chung, Executive Vice Chairman of Hyundai Motor Group. “Its startup roots and abundant experience collaborating with automakers combined with technological prowess makes Rimac the ideal partner for us. We look forward to collaborating with Rimac on our road to Clean Mobility.” Founder and CEO of Rimac Automobili, Mate Rimac said: “We are very impressed by the Hyundai Motor Group’s vision and prompt and decisive initiative. We believe that this technology partnership will create maximum value for our companies and their customers. Rimac is still a young and relatively small but fast-growing company. We see a strong investor and technology partner in Hyundai Motor Group and believe that this collaboration will charge the company’s position as a Tier-1 electrification components supplier to the industry. View full article

When General Motors announced that it would be potentially selling its Lordstown plant to electric car start-up Workhorse Group Inc, there was a fair amount of head-scratching. The company is best for their W-15 range-extended pickup (which has been delayed) and electric vans. They are also known for the Surefly octocopter drone their former CEO Steve Burns is trying to sell. Why the skepticism? Workhorse isn't looking so good on the financial sheets. Back in March, Trucks.com published a report talking about the various financial setbacks the company has been facing. From their story, The news hasn't gotten any better in 2019. Their most recent financial statement to the SEC reveals the company has $2,847,936 of on-hand cash at the end of March. They also reported a net loss of $6,264,172. "Workhorse appears to be a very slow-moving venture that has a lot of risk, and no massive amount of funding. Lordstown is a massive facility, and despite some investments over the years, I don't believe it would be easily converted to build electric pickups without substantial investment," said Jeff Schuster, an industry analyst for LMC Automotive to The Detroit News. But Workhorse has a plan for this. Both the News and Trucks.com report that “newly formed entity” would be created and Workhorse would be a minority stakeholder. The entity "would own Lordstown and use Workhorse technology and intellectual property to build a vehicle." Where would the business get the capital to this is unclear. Workhorse spokesman Tom Colton declined to comment when asked about possible funding sources. “There’s got to be some big contract behind this because Workhorse’s financials and forecasts just don’t merit a plant that makes 450,000 units a year,” said Kristin Dziczek, director of the labor and industry group for the Center for Automotive Research. There is also the issue of utilizing all of that space that Lordstown offers - 6.2 million square feet. Analysis done by LMC says Workhorse would need to produce 410,000 trucks and vans per year to reach full capacity. At the moment, LMC forecasts Workhorse producing between 5,000 to 10,000 vehicles. Again, Workhorse may have a solution. Here is GM Spokesman Jim Cain speaking to The Detroit News, As mentioned earlier, Workhorse is one of the five finalists on building new trucks for the U.S. Postal Service. They are teamed up with VT Hackney - a company that builds specialized bodies for work trucks - Emergency services and Beverage trucks to give some examples. The contract is worth $6.3 billion. But Jalopnik reported yesterday that the post office truck would not be built in Lordstown. As it stands, there are a lot of questions and unknowns about this possible deal. Source: The Detroit News, Trucks.com View full article