William Maley

Jaguar Land Rover has its eye on a new headquarters to be located at a racetrack. But not any racetrack; the company is reportedly in talks to buy the revered UK racetrack Silverstone. The Birmingham Post reports that JLR is in talks with the British Racing Drivers’ Club - the current owners of the track - about buying the track. Reportedly, the board has given the green light and JLR could offer the owners around 23 billion Pounds (about $34.1 billion). If purchased, the company would build a museum, experience center, and hotel on the grounds. There will also be a space for 1,000 sales and marketing staff and 700 engineers. Now if Jaguar Land Rover do purchase the track, would there still be racing? The Post and Automotive News Europe say yes, so F1 racing at the track is safe. When asked for comment, the British Racing Drivers’ Club said in a statement "that it received a number of confidential approaches" and would consider an "attractive" offer from any party and would seek a mandate from club members before progressing it." Jaguar Land Rover declined to comment. Source: Automotive News Europe (Subscription Required), Birmingham Post View full article

Porsche has given the Mission E concept the go-ahead for production. "With Mission E, we are making a clear statement about the future of the brand. Even in a greatly changing motoring world, Porsche will maintain its front-row position with this fascinating sports car," said Dr. Wolfgang Porsche, Chairman of the Supervisory Board of Porsche AG. First shown at the Frankfurt Motor Show in September, the concept featured an 800 Volt electrical system with two electric motors producing around 600 horsepower. The run to 60 MPH takes around 3.5 seconds and have a total range of around 310 Miles. A unique feature of the concept was the 800 Volt charging system that provided 80 percent of total range within 15 minutes. To get ready for Mission E production, Porsche will invest 700 Million Euros (about $765 million) into their Stuttgart-Zuffenhausen plant. The investment will bring in a new paint shop, assembly plant, and upgrades to its engine factory. Porsche says they plan on launching the production Mission E by the end of the decade. Source: Porsche Press Release is on Page 2 Porsche Mission E Receives a Green Light Porsche to invest around one billion euros - More than 1,000 new jobs Atlanta, Georgia. The first 100 percent electrically powered Porsche is on its way. The supervisory board of Dr. Ing. h.c. F. Porsche AG today gave the green light for the Mission E project. In the words of Dr. Oliver Blume, Chairman of the Executive Board, Porsche is thus "beginning a new chapter in the history of the sports car." The vehicle is due to be launched at the end of the decade. With the Mission E project, Porsche is continuing to back sustainable growth. In Stuttgart-Zuffenhausen alone more than 1,000 new jobs are being created. The company will be investing around 700 million euros in its main site. Over the next few years, a new paint shop and a new assembly plant will be built. The existing engine factory is also being expanded for the production of electric motors. In addition, the existing body shop is being enlarged. On top of that come other areas in which the company will be investing in this context, such as in the Weissach development center. The Mission E concept car celebrated its premiere at the Frankfurt International Motor Show (IAA) in September 2015. Visitors were gripped above all by its highly emotional design. Living up to the buzzword of 'E-Performance', the technological trailblazer combines outstanding driving performance with trendsetting day-to-day practicality. In concept form, the four-door car with four individual seats has a system power output of over 600 hp (440 kW). The vehicle thus is expected to achieve both acceleration of 0 to 100 km/h in under 3.5 seconds with a planned maximum range of more than 500 kilometers. When charged using an 800-volt charger unit which is planned to be specially developed for the car, which is twice as powerful as today's quick-charge systems, the lithium-ion batteries integrated within the vehicle floor could be recharged to the 80 percent level after just 15 minutes. Plans are under way for optional equipment that would allow the vehicle to be 'refueled' wirelessly by induction via a coil which the owner could have installed beneath the garage floor. Dr. Wolfgang Porsche, Chairman of the Supervisory Board of Porsche AG: "With Mission E, we are making a clear statement about the future of the brand. Even in a greatly changing motoring world, Porsche will maintain its front-row position with this fascinating sports car." Chairman of the Porsche Executive Board, Dr. Oliver Blume: "We are resolutely taking on the challenge of electric mobility. Even with solely battery-powered sports cars, Porsche is remaining true to its philosophy and offering our customers the sportiest and technologically most sophisticated model in this market segment." Blume added that the Mission E project underlines the importance of Stuttgart-Zuffenhausen as a production site, of Baden-Württemberg as a center of technology and of the whole German automotive industry. Uwe Hück, Chairman of the Central Works Council and Deputy Chairman of the Porsche AG Supervisory Board: "A day to celebrate! Yes, we did it! We brought Mission E to Zuffenhausen and Weissach where the future has tradition. The workers' side made the employer's side an offer that they couldn't refuse. This heralds the dawn of a new age in Zuffenhausen and Weissach. Digitalization will be growing up with us. And Factory 4.0 will be a major challenge for the workforce, trade union and employer. We will be taking new approaches but not giving up on the social aspects. With today's decision, Porsche is driving flat out with no speed restrictions into the automotive and industrial future." View full article

Yes

The go-ahead has been given and next summer, Buick will launch the Envision crossover. According to Automotive News, Buick's chief Duncan Aldred told members of the Buick National Dealer Council yesterday and was planning to announce it to the rest of Buick's dealers today. Aldred confirmed the decision in an interview today. “Talk about a catalyst for the Buick brand and for volume growth. We’re putting in what I believe is a class-leading vehicle in the heart of the U.S. auto industry. This is massive for Buick,” said Aldred. Dealers have been wanting the Envision for quite a while now as it would fill a gap between the subcompact Encore and full-size Enclave. The vehicle will be exported from China, which will draw the ire of some. The U.S.-Spec Envision will come with a turbocharged 2.0L four-cylinder paired with a six-speed automatic and all-wheel drive. A two-wheel drive version with a different engine is being considered for the future. The Envision will be the first GM model to use a new global compact platform. This platform will also underpin the next-generation Chevrolet Equinox and GMC Terrain, which are expected to go on sale in 2017. Source: Automotive News (Subscription Required) View full article

To shoulder the massive costs that will come from the diesel emission scandal, Volkswagen has agreed to terms to take out a 20 billion euro (about $21 billion) bridging loan with a number of banks. Sources tell Reuters the decision to go with a number of banks allows Volkswagen to spread the debt out and that the company hopes to start paying back the loans next year by issuing bonds in the company. A few weeks ago, we heard rumors that Volkswagen was planning to take out 20 billion Euros in short-term loans to act as a buffer for upcoming fines. But since that report, the news has only gotten worse. Volkswagen has admitted that 430,000 vehicles in Europe have "implausible" CO2 figures and prosecutors have opened an investigation into possible tax evasion in connection with the problem (CO2 emissions are taxed in Europe). Then Volkswagen admitted that the 3.0L TDI V6 used in a number of vehicles in U.S. had illegal software that wasn't revealed to the EPA. Finally this week, the German Transport Authority deemed the software Volkswagen uses in their diesel vehicles is illegal. Along with the loans, Volkswagen is considering all options of raising funds internally. Such items include cutting back on their development budget and possibly closing the Dresden factory where the Phaeton. But there is also the possibility of Volkswagen selling off some its assets to bring in more money. Source: Reuters, 2 View full article

To meet the growing demand for pickups in the U.S., Toyota will be boosting production of the Tacoma and Tundra in 2016. Bill Fay, head of Toyota's U.S. division says a third shift has been added to their Baja California, Mexico plant (Tacoma) and an additional 250 workers, plus a more flexible work schedule to its San Antonio, Texas plant (Tacoma and Tundra). The new workers and extra production will be in place in San Antonio by the middle of next year, said Fay. At the moment, Toyota's dealers are sitting on a 20-day supply of the Tundra, while the Tacoma is at a 10-day supply. "If you were to ask any of our U.S. dealers what they want, I'd say every one of them would say 'More trucks," said Bob Carter, senior vice president for U.S. Toyota operations. Source: Reuters View full article

Dr. Ulrich Hackenberg, head of Audi's r&d has stepped down today. Hackenberg has been a key presence at Audi and the Volkswagen group since he joined in 1985. He has played a major role in a number of projects including the first-generation Audi TT, Volkswagen XL1, and the MQB modular platform. In 2013, he was named the head of Audi's r&d division. Hackenberg made headlines back in September as he and two other r&d heads at Volkswagen - Porsche's Wolfgang Hatz and Volkswagen's Heinz-Jakob Neusser - were suspended for possible involvement in the diesel scandal. “In the 30 years that he was active in the Volkswagen Group, Ulrich Hackenberg was involved in crucial strategies and model decisions. The highly flexible modular system resulted in flexible modular production. Both systems helped us to produce very efficiently and with high quality. Numerous car models from Audi, Volkswagen and Bentley were significantly affected by his commitment and expertise. On behalf of the entire Board of Management, I thank him for his many years of commitment and his professional passion,” said Audi’s Board of Management Chairman Rupert Stadler. Hackenberg's successor is Stephan Knirsch, currently the head of engine development at Audi. Source: Audi Press Release is on Page 2 Dr. Ulrich Hackenberg has reached a mutual agreement with the Supervisory Board of AUDI AG to step down as Member of the Board of Management for Technical Development. The new Chairman of the Audi Supervisory Board, Matthias Müller, praised Hackenberg’s significant impact on the Technical Development divisions of the entire Volkswagen Group: “Above all, the modular toolkit system is inseparably connected with the name of Ulrich Hackenberg. He had that idea already in the early nineties at Audi. Today, the entire Group profits from it.” Audi’s Board of Management Chairman Rupert Stadler underscored his lifetime achievements: “In the 30 years that he was active in the Volkswagen Group, Ulrich Hackenberg was involved in crucial strategies and model decisions. The highly flexible modular system resulted in flexible modular production. Both systems helped us to produce very efficiently and with high quality. Numerous car models from Audi, Volkswagen and Bentley were significantly affected by his commitment and expertise. On behalf of the entire Board of Management, I thank him for his many years of commitment and his professional passion.” After graduating in mechanical engineering at Aachen RWTH University, Ulrich Hackenberg was employed as an assistant at the Institute for Motor Transport from 1978 until 1985. Amongst other positions there, he was the head of research into vehicle dynamics, developed lectures in motorcycle technology and gained a doctorate in 1985 on the stability properties of the “rider-motorcycle-road” system. Hackenberg moved to Audi in 1985, where he took over the position of Head of Concept Development in 1989 and later led the technical project management for the entire product range. That included the Audi 80, A2, A3, A4, A6, A8 and TT models as well as numerous concept studies and show cars, the technical conception of the modular toolkit strategy and the development of a simultaneous-engineering structure. He was active in the Volkswagen Group from 1998 until 2002. There, he was head of the Body Development department and additionally responsible as of late 1998 for Concept Development. From 2002 until January 2007, Hackenberg once again worked for AUDI AG and was in charge of the Concept Development, Body Development, Electrics and Electronics departments. During that time, he developed the “modular longitudinal toolkit.” On February 1,2007, he became Member of Volkswagen’s Brand Board of Management with responsibility for the Technical Development division. He pushed forward with the further development and complete renewal of the Volkswagen product range and the development of the modular transverse toolkit. Further highlights were the XL1, the first series-produced “one‑liter car”, and the entry of the Volkswagen Brand into motorsport. As of July 1, 2013, he was the Board of Management Member for Technical Development of AUDI AG. In addition, he was responsible for coordinating the development of all the brands of the Volkswagen Group. View full article

Last year, the State of Michigan signed a bill that banned an automaker from doing direct sales. This meant an automaker like Tesla couldn't sell any of their vehicles in the state. The move was widely applauded by the likes of GM and the Michigan Automobile Dealers Association. Tesla wasn't impressed by this and since then has been working on trying to change this. But it hasn't been going well. While the company has been trying to educate lawmakers and state officials, it seems everyone in the state doesn't want to bring up the debate. “There doesn’t seem to be much interest from not only the dealers, but manufacturers like GM that want to continue to shut us out of the market entirely,” said Jim Chen, Tesla’s vice president of regulatory affairs to The Detroit News. “We’re an American company that is building cars in the United States that is using over 55 Michigan suppliers — that is spending over $120 million in parts and components from Michigan suppliers to build American-made cars. Why shouldn’t we be allowed to sell in Michigan?” Chen went on to say. Terry Burns, executive vice president of the Michigan Automobile Dealers Association says Tesla is welcomed to the state, but they have to go through dealers. “They’re an automotive manufacturer, and the Michigan law says that manufacturers need to use dealers in order to sell vehicles. That’s Michigan law. We would welcome Tesla here. But we would think that as with all the other businesses that come into Michigan, they would want to follow the law,” said Burns. Interestingly enough, the state senate introduced a bill back in April to allow direct sales of three-wheeled “autocycles” to consumers in Michigan. A key automaker who stands to benefit from this is Elio Motors. In response, the Federal Trade Commission (FTC) issued a statement that criticized the move. "Automobile manufacturers have an economic incentive to respond to consumer preferences by choosing the most effective distribution method for their vehicle brands," FTC officials wrote. Tesla plans to continue their lobbying efforts in the state. “We have the majority of next year to lobby, discuss and debate the merits of what we think is a co-existence of our business model in the state of Michigan," said Will Nicholas, Tesla’s government relations manager. Source: The Detroit News View full article

Volkswagen's diesel emission scandal went deeper this week as the German Federal Motor Transport Authority (known as the KBA) announced on Tuesday that the software Volkswagen uses on their diesel vehicles was deemed illegal. This decision opens up the possibility of lawsuits and penalties against the company, but the extent of this is unknown at this time. As the New York Times states 'it was a turbulent day for the company.' Aside from the KBA announcing the software Volkswagen used was deemed illegal, the company announced monthly sales in the U.S. dropped 25 percent. Volkswagen also announced that 50 employees have stepped forward and provided information about the software and who knew what as part of an amnesty program that ended in November. Then came Standard & Poor's announcement that it had downgraded Volkswagen's debt from A- to a BBB+, three notches away from junk status. The rating agency said the downgrade “reflects our view that VW’s manipulation of engine emissions exposes the group to material, wide-ranging adverse credit impacts.” Source: New York Times View full article

The U.S. Congress is voting on a new highway bill that if passed, would bring some much needed money and changes for the National Highway Traffic Safety Administration (NHTSA). Automotive News reports the new bill, called Fixing America’s Surface Transportation (FAST) Act would be the first long-term highway plan in a decade. If passed, the bill would provide roughly $300 billion for roads, bridges, and mass-transit projects. The bill would also increase NHTSA's budget for defect investigations from $10 million a year to $30 million. But for NHTSA to get the increase in the budget, they would need to implement a number of reforms outlined by Transportation Department’s inspector general. Along with the increase in the defect investigation budget, FAST would some much-needed changes in how recalls and defects are dealt with. The maximum fine for safety violations will increase from $35 million to $105 million Employees who report on potentially dangerous safety violations will be rewarded If there is a financial penalty put on an automaker or supplier, a whistleblower could get up to 30 percent of the penalty Automakers will need to keep safety data for 10 years (up from the current 5) and provide part numbers for defective parts to NHTSA Dealers will be required to notify customers of an open recall Rental car companies will not be allowed to rent out vehicles that have an open recall States would be given funds to notify owners who renew their vehicle registration that a recall is due Currently, the bill has bipartisan support and the White House announced that President Obama would sign the bill if passed. Source: Automotive News (Subscription Required) View full article

But doesn't the Audi A6 come with FWD as standard (on the 2.0T in the U.S. and many more options in Europe)? It seems to be doing ok.

Oops. It has been fixed. Also, I updated the article with Mercedes-Benz's numbers.

Mercedes-Benz USA Reports November Sales Of 33,475 MBUSA posts 4.0% YTD increase moving toward record year ATLANTA, Dec. 2, 2015 /PRNewswire/ -- Mercedes-Benz USA (MBUSA) today reported November sales of 33,475 units, a decrease of 11.7% from the 37,925 vehicles sold during the same month last year. While MBUSA recorded its highest month of the year; runout of popular model lines and limited availability of top-selling SUVs, including the new GLC, resulted in a decline from last November, which was the highest sales month in MBUSA history. Despite the constraints, MBUSA president and CEO Stephen Cannon said, "November brought us enough volume to assure an all-time record year for MBUSA." Mercedes-Benz Vans delivered 2,770 sales for the month of November, up 9.4% over November 2014, while smart recorded 662 units in November. On a year-to-date basis, Mercedes-Benz retails totaled 308,885, up 4.2%. Adding year-to-date sales of 25,843 for Vans and 6,815 for smart, MBUSA posted a grand total of 341,543 units through November, up 4.0%. November sales for the Mercedes-Benz brand were led by the C-Class, GLE and E-Class model lines. The C-Class took the top spot with 7,239 units, followed by the newly introduced GLE-Class. The GLE finished second this month with 4,883 sales, a total of 14,353 units sold during its first four months on the market. The brand's AMG high-performance models posted a 121% monthly sales increase to 2,186 units in November, while year-to-date sales climbed 43.9% to 14,649. Sales of Mercedes-Benz BlueTEC diesel models recorded 583 for the month and 10,436 year-to-date. Separately, Mercedes-Benz Certified Pre-Owned (MBCPO) models delivered November sales of 9,406. On a year-to-date basis, MBCPO has sold 108,635 vehicles, an increase of 0.8% over the comparable period last year (107,800 vehicles).

Volkswagen is trying to save as much cash as they can to help offset the upcoming fines and penalties due to the cheating devices they fitted to a number of diesel vehicles. We have reported that Volkswagen is in the process of freezing and reevaluating a number of projects. Now it seems the German automaker is making cuts in the trims and variants it offers. Bloomberg reports that Volkswagen will be cutting back on the number of trims and variants that it offers. Bernd Osterloh, a supervisory board member at Volkswagen says the move will cut a fair amount of complexity and costs. How much are we talking about? About $1.9 billion Euros (about $2 billion). “We from the works council have long flagged the huge range of model variants and different components. That brings enormous complexity and adds to costs, for example, for logistics. We can take out costs there on a large scale and don’t have to talk about job cuts,” said Osterloh. Source: Bloomberg View full article

I'm sure Volvo will offer that.