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Found 36 results

  1. It is no secret that buyers are gobbling up SUVs and crossovers, nor is it that automakers are introducing new and redesigned models. Take a look at the New York Auto Show this week where a number a new models (Toyota RAV4 and Subaru Forester) and concepts (Lincoln Aviator) made their debut. According to automotive consultancy firm LMC Automotive, there are currently 63 mainstream crossover and SUV models, and 53 luxury models. By 2023, LMC is projecting 90 models for both mainstream and luxury. But this prompts a question - how much is too much? “I think everyone has read the same tea leaves - right now there seems to be insatiable demand,” said Cadillac president Johan de Nysschen to Reuters. “Everyone is going into these segments with compelling new entries and that means there are going to be winners and there are going to be losers.” Already, there are signs this boom could be heading downward. LMC Automotive is forecasting a slow growth for SUVs and crossovers in 2018 and continuing through 2025. “There are still some legs left to grow in the SUV market, but growth is slowing and will eventually level off. This is a bright spot in the market, which is why everyone is flocking to it with new product,” said Jeff Schuster, LMC’s senior vice president of forecasting. A key reason comes down to the large number of SUV and crossovers that will be going off-lease and entering the market, proving a less expensive option for buyers. Cox Automotive forecasts that 40 percent of the roughly 4 million nearly new vehicles expected to come off lease this year will be SUVs and crossovers. The number is expected to rise to 44 percent. “Now that you’re seeing more SUVs starting to come off lease, that will automatically put pressure on new SUV pricing,” said Karl Brauer, executive publisher forKelley Blue Book. There are those who don't buy this argument though. Sam Fiorani, vice president of global vehicle forecasting with AutoForecast Solutions says there is still room to grow if automakers dive into different niches such as sporty models and limited editions. “The market is not yet saturated and there are all kinds of niches that have yet to be filled. We’re five or 10 years from even thinking about market saturation.” Various automakers claim there is always more room for products, provided they can stand out. “There are clearly a lot of entrants, but we are going to differentiate ourselves with a completely different look to our brand," said Lincoln president Joy Falotico at the New York Auto Show. But Karl Brauer points out a simple fact: “Simple math suggests that you’ll have more models with lower volume.” “You can’t have that many SUVs on the market and have all of them grow volume. Some of them are going to have to give,” explained Brauer. Source: Reuters
  2. It is no secret that buyers are gobbling up SUVs and crossovers, nor is it that automakers are introducing new and redesigned models. Take a look at the New York Auto Show this week where a number a new models (Toyota RAV4 and Subaru Forester) and concepts (Lincoln Aviator) made their debut. According to automotive consultancy firm LMC Automotive, there are currently 63 mainstream crossover and SUV models, and 53 luxury models. By 2023, LMC is projecting 90 models for both mainstream and luxury. But this prompts a question - how much is too much? “I think everyone has read the same tea leaves - right now there seems to be insatiable demand,” said Cadillac president Johan de Nysschen to Reuters. “Everyone is going into these segments with compelling new entries and that means there are going to be winners and there are going to be losers.” Already, there are signs this boom could be heading downward. LMC Automotive is forecasting a slow growth for SUVs and crossovers in 2018 and continuing through 2025. “There are still some legs left to grow in the SUV market, but growth is slowing and will eventually level off. This is a bright spot in the market, which is why everyone is flocking to it with new product,” said Jeff Schuster, LMC’s senior vice president of forecasting. A key reason comes down to the large number of SUV and crossovers that will be going off-lease and entering the market, proving a less expensive option for buyers. Cox Automotive forecasts that 40 percent of the roughly 4 million nearly new vehicles expected to come off lease this year will be SUVs and crossovers. The number is expected to rise to 44 percent. “Now that you’re seeing more SUVs starting to come off lease, that will automatically put pressure on new SUV pricing,” said Karl Brauer, executive publisher forKelley Blue Book. There are those who don't buy this argument though. Sam Fiorani, vice president of global vehicle forecasting with AutoForecast Solutions says there is still room to grow if automakers dive into different niches such as sporty models and limited editions. “The market is not yet saturated and there are all kinds of niches that have yet to be filled. We’re five or 10 years from even thinking about market saturation.” Various automakers claim there is always more room for products, provided they can stand out. “There are clearly a lot of entrants, but we are going to differentiate ourselves with a completely different look to our brand," said Lincoln president Joy Falotico at the New York Auto Show. But Karl Brauer points out a simple fact: “Simple math suggests that you’ll have more models with lower volume.” “You can’t have that many SUVs on the market and have all of them grow volume. Some of them are going to have to give,” explained Brauer. Source: Reuters View full article
  3. Volkswagen recently held an event for journalists and investors to talk about the upcoming Jetta. But the company also gave a preview of their product plans for the near future. According to Autoblog, those plans include two new crossovers. The first will be a five-seat model that will slot between the Tiguan and Atlas. Volkswagen North America CEO President and CEO Hinrich Woebcken described it as 'coupe-like'. We're assuming this model will compete with the likes of the Ford Edge and Nissan Murano. The second will slot below the long-wheelbase Tiguan (what we get in the U.S.). This could either be the short-wheelbase Tiguan or a new model that was hinted by Volkswagen's director of development, Dr. Frank Welsch back in September. It comes as no surprise that Volkswagen is planning to expand their crossover offerings. During his presentation, Woebcken showed that light truck sales increased a whopping 51 percent year-to-date, compared to 1 percent for car sales. Still, Volkswagen is planning to walk away from sedans just yet. 2018 will see the new Jetta and launches of the Arteon and Passat GT. Down the road, Volkswagen will introduce a new Jetta GLI and redesigned Passat. Source: Autoblog
  4. Volkswagen recently held an event for journalists and investors to talk about the upcoming Jetta. But the company also gave a preview of their product plans for the near future. According to Autoblog, those plans include two new crossovers. The first will be a five-seat model that will slot between the Tiguan and Atlas. Volkswagen North America CEO President and CEO Hinrich Woebcken described it as 'coupe-like'. We're assuming this model will compete with the likes of the Ford Edge and Nissan Murano. The second will slot below the long-wheelbase Tiguan (what we get in the U.S.). This could either be the short-wheelbase Tiguan or a new model that was hinted by Volkswagen's director of development, Dr. Frank Welsch back in September. It comes as no surprise that Volkswagen is planning to expand their crossover offerings. During his presentation, Woebcken showed that light truck sales increased a whopping 51 percent year-to-date, compared to 1 percent for car sales. Still, Volkswagen is planning to walk away from sedans just yet. 2018 will see the new Jetta and launches of the Arteon and Passat GT. Down the road, Volkswagen will introduce a new Jetta GLI and redesigned Passat. Source: Autoblog View full article
  5. William Maley

    BMW's Upcoming Crossover Mania

    Within the next two years, BMW's crossover lineup will undergo a massive change with two key models undergoing a redesign and two new models joining the family. Australian outlet Motoring has learned some key details about the models in question and possible debuts. X2: Think X1 in a sleeker package. Previewed last year at the Paris Motor Show, the X2 will come with a range of three and four-cylinder engines. Drivetrain choices will include front or all-wheel drive. It is expected to launch sometime early next year. X3: One of BMW's most popular models, the next-generation model is expected to go on sale in Europe sometime later this year with other markets to follow. It will use the CLAR (Cluster Architecture) platform that underpins the 5 and 7-Series. Expect a range of four and six-cylinder engines. X5: The X5 is a big seller in key markets and BMW has reportedly fast-tracked the replacement to go into production beginning in late 2018. It will also use the CLAR platform. X7: BMW's new flagship SUV and challenger to the likes of Mercedes' GLS. It will also use the CLAR platform and feature a range of engines including six, eight, and even a V12 option. A concept version is expected to debut at Frankfurt later this year, with production beginning in late 2018. Source: Motoring
  6. William Maley

    BMW News: BMW's Upcoming Crossover Mania

    Within the next two years, BMW's crossover lineup will undergo a massive change with two key models undergoing a redesign and two new models joining the family. Australian outlet Motoring has learned some key details about the models in question and possible debuts. X2: Think X1 in a sleeker package. Previewed last year at the Paris Motor Show, the X2 will come with a range of three and four-cylinder engines. Drivetrain choices will include front or all-wheel drive. It is expected to launch sometime early next year. X3: One of BMW's most popular models, the next-generation model is expected to go on sale in Europe sometime later this year with other markets to follow. It will use the CLAR (Cluster Architecture) platform that underpins the 5 and 7-Series. Expect a range of four and six-cylinder engines. X5: The X5 is a big seller in key markets and BMW has reportedly fast-tracked the replacement to go into production beginning in late 2018. It will also use the CLAR platform. X7: BMW's new flagship SUV and challenger to the likes of Mercedes' GLS. It will also use the CLAR platform and feature a range of engines including six, eight, and even a V12 option. A concept version is expected to debut at Frankfurt later this year, with production beginning in late 2018. Source: Motoring View full article
  7. It is unlikely that the Focus RS will be the only Ford model sporting the RS badge, although which models will follow have been up for debate. The chief of Ford Performance has hinted that the brand's crossovers could go under the RS treatment. "I think customers love performance. I think the definition of what that means for an SUV might be different than what it means for a Focus or for a Fiesta. But I think that we’ve seen, even in the US and globally, that people like aggressive-looking cars, they like sporty, they want the power and pick-up and engine improvement, so I think the answer is yes. SUV customers would appreciate performance, for sure," said Dave Pericak, head of Ford Performance to Car Dealer Magazine. Pericak goes on to say that he believes there are "no real credible (performance SUVs)." (Though we are sure the likes of BMW, Mercedes-Benz, and Porsche would like to have a conversation with him about this -WM). "If you look at the SUV market right now, there aren’t too many credible performance SUVs out there. here are people who have made partial attempts at it and there are different things that have happened, but there are no real credible ones. So, I think that’s an area of some opportunity, for sure." Car Dealer Magazine speculates that the Kuga (Escape to us) could be the most likely candidate, followed by the EcoSport and Edge. Source: Car Dealer Magazine View full article
  8. It is unlikely that the Focus RS will be the only Ford model sporting the RS badge, although which models will follow have been up for debate. The chief of Ford Performance has hinted that the brand's crossovers could go under the RS treatment. "I think customers love performance. I think the definition of what that means for an SUV might be different than what it means for a Focus or for a Fiesta. But I think that we’ve seen, even in the US and globally, that people like aggressive-looking cars, they like sporty, they want the power and pick-up and engine improvement, so I think the answer is yes. SUV customers would appreciate performance, for sure," said Dave Pericak, head of Ford Performance to Car Dealer Magazine. Pericak goes on to say that he believes there are "no real credible (performance SUVs)." (Though we are sure the likes of BMW, Mercedes-Benz, and Porsche would like to have a conversation with him about this -WM). "If you look at the SUV market right now, there aren’t too many credible performance SUVs out there. here are people who have made partial attempts at it and there are different things that have happened, but there are no real credible ones. So, I think that’s an area of some opportunity, for sure." Car Dealer Magazine speculates that the Kuga (Escape to us) could be the most likely candidate, followed by the EcoSport and Edge. Source: Car Dealer Magazine
  9. William Maley

    Audi Plans More RS Crossovers

    The only Audi crossover that has the vaunted RS badge is the Q3, but that is going changing in the near future. Speaking with Car and Driver, Audi Sport boss Stephan Winkelmann said there would be more RS-badged crossovers in the near future. “We don’t have a big lineup. The right cars means having them in segments that are growing, and also segments that are equally distributed in the regions of the world. Therefore a CUV shift is due; we are working on it, and you will see it coming.” Sources have previously said that the Q7 and upcoming Q8 will get the RS treatment. There is also the possibility of an RS Q5. One item you will not see under the hood of any RS crossover is a diesel engine. "If I have to put money down for an investment which has to make a return worldwide, then diesel will never be the priority,” said Winkelmann. Source: Car and Driver
  10. William Maley

    Audi News: Audi Plans More RS Crossovers

    The only Audi crossover that has the vaunted RS badge is the Q3, but that is going changing in the near future. Speaking with Car and Driver, Audi Sport boss Stephan Winkelmann said there would be more RS-badged crossovers in the near future. “We don’t have a big lineup. The right cars means having them in segments that are growing, and also segments that are equally distributed in the regions of the world. Therefore a CUV shift is due; we are working on it, and you will see it coming.” Sources have previously said that the Q7 and upcoming Q8 will get the RS treatment. There is also the possibility of an RS Q5. One item you will not see under the hood of any RS crossover is a diesel engine. "If I have to put money down for an investment which has to make a return worldwide, then diesel will never be the priority,” said Winkelmann. Source: Car and Driver View full article
  11. Volkswagen sees crossovers as its savior in the U.S. marketplace. Speaking with Wards Auto, Volkswagen North America CEO Hinrich Woebcken said their model mix would change from 10 to 12 percent crossovers to 40 percent in the next few years. “We are shifting the brand into a position where we will enjoy more business volume because we were not present in those segments. We’re currently at 12% and the industry is nearly 60% light trucks and SUVs, so we are severely underrepresented,” said Woebcken. To accomplish this, Volkswagen will be launching the brand-new Altas and redesign Tiguan later this year. Interestingly, Volkswagen will keep the current Tiguan for a bit to act as an entry-level model for the crossover lineup. Down the road, Volkswagen will introduce an all-new Touraeg and is considering doing another crossover using the Atlas' platform. One vehicle that is still off the table is a truck. Rumors have been flying around about Volkswagen doing a car-based pickup (i.e. Honda Ridgeline). Woebcken said there is little interest for this at Volkswagen's HQ due to how small the segment is. Source: Wards Auto View full article
  12. Volkswagen sees crossovers as its savior in the U.S. marketplace. Speaking with Wards Auto, Volkswagen North America CEO Hinrich Woebcken said their model mix would change from 10 to 12 percent crossovers to 40 percent in the next few years. “We are shifting the brand into a position where we will enjoy more business volume because we were not present in those segments. We’re currently at 12% and the industry is nearly 60% light trucks and SUVs, so we are severely underrepresented,” said Woebcken. To accomplish this, Volkswagen will be launching the brand-new Altas and redesign Tiguan later this year. Interestingly, Volkswagen will keep the current Tiguan for a bit to act as an entry-level model for the crossover lineup. Down the road, Volkswagen will introduce an all-new Touraeg and is considering doing another crossover using the Atlas' platform. One vehicle that is still off the table is a truck. Rumors have been flying around about Volkswagen doing a car-based pickup (i.e. Honda Ridgeline). Woebcken said there is little interest for this at Volkswagen's HQ due to how small the segment is. Source: Wards Auto
  13. William Maley

    Volvo XC40 To Debut Later This Year

    As Volvo finishes up the launch of their 90 series lineup, the company's focus will turn to the 40 series lineup. Speaking with Autocar, Volvo's R&D boss Henrik Green revealed the XC40 compact crossover will launch this fall. The model is expected to look somewhat similar to the Concept 40.1 shown last year and utilize the all new CMA platform that was jointly worked on by Volvo and their parent company, Geely. Down the road, Volvo plans on launching other versions of the 40 Series such as a hatchback. Also launching this year is the second-generation XC60. This is an important model for Volvo as it is their most popular model. “The XC60 is our biggest-volume car that sells broadly in Europe, China and America. It brings significant profits so is crucial in many aspects. [The new model is] a fantastic car, a big step forward,” said Green. Source: Autocar
  14. As Volvo finishes up the launch of their 90 series lineup, the company's focus will turn to the 40 series lineup. Speaking with Autocar, Volvo's R&D boss Henrik Green revealed the XC40 compact crossover will launch this fall. The model is expected to look somewhat similar to the Concept 40.1 shown last year and utilize the all new CMA platform that was jointly worked on by Volvo and their parent company, Geely. Down the road, Volvo plans on launching other versions of the 40 Series such as a hatchback. Also launching this year is the second-generation XC60. This is an important model for Volvo as it is their most popular model. “The XC60 is our biggest-volume car that sells broadly in Europe, China and America. It brings significant profits so is crucial in many aspects. [The new model is] a fantastic car, a big step forward,” said Green. Source: Autocar View full article
  15. If there is one issue that is top of mind for various folks at Cadillac, it is the lack of crossovers. Their sedan-heavy lineup isn't doing them any favors in a marketplace crazy for crossovers and SUVs. The brand does have some breathing room thanks to increasing sales in China, but they know they need crossovers now. “It’s left us with the obvious difficulty. The core part of our volume lineup is in the market that’s contracting while we are unable, as good as XT5 and Escalade are, we are unable to fully exploit the updraft that’s taking place in the other half of the market,” said Cadillac President Johan de Nysschen to The Detroit News. The bad news is the first of a handful will not arrive till the second half of 2018 according to de Nysschen. The first is a model that will be smaller than the XT5, what we believe will be called the XT3. Some analysts believe the XT3 will be built at Fairfax Assembly Plant in Kansas City, Kansas. Then a full-size crossover slotted between the XT5 and Escalade will come next. We think this could be the sister model to the Chevrolet Traverse and Buick Enclave. Finally, de Nysschen hinted that an even smaller crossover could arrive after 2020. That doesn't mean Cadillac isn't working on their sedan lineup either. The XTS is expected to get a refresh later this year. Cadillac will also be launching a sedan to compete with the likes of the Audi A3 and Mercedes-Benz CLA in 2019. A coupe and convertible will join the sedan around the same time. de Nysschen explained the entry-level luxury marketplace is growing and the company wants a piece of it. Source: The Detroit News
  16. If there is one issue that is top of mind for various folks at Cadillac, it is the lack of crossovers. Their sedan-heavy lineup isn't doing them any favors in a marketplace crazy for crossovers and SUVs. The brand does have some breathing room thanks to increasing sales in China, but they know they need crossovers now. “It’s left us with the obvious difficulty. The core part of our volume lineup is in the market that’s contracting while we are unable, as good as XT5 and Escalade are, we are unable to fully exploit the updraft that’s taking place in the other half of the market,” said Cadillac President Johan de Nysschen to The Detroit News. The bad news is the first of a handful will not arrive till the second half of 2018 according to de Nysschen. The first is a model that will be smaller than the XT5, what we believe will be called the XT3. Some analysts believe the XT3 will be built at Fairfax Assembly Plant in Kansas City, Kansas. Then a full-size crossover slotted between the XT5 and Escalade will come next. We think this could be the sister model to the Chevrolet Traverse and Buick Enclave. Finally, de Nysschen hinted that an even smaller crossover could arrive after 2020. That doesn't mean Cadillac isn't working on their sedan lineup either. The XTS is expected to get a refresh later this year. Cadillac will also be launching a sedan to compete with the likes of the Audi A3 and Mercedes-Benz CLA in 2019. A coupe and convertible will join the sedan around the same time. de Nysschen explained the entry-level luxury marketplace is growing and the company wants a piece of it. Source: The Detroit News View full article
  17. William Maley

    How Sales In China Are Helping Cadillac

    China has given Cadillac a bit of breathing room when it comes to sales and working on filling out their lineup. Automotive News reports overall sales of Cadillac vehicles in the U.S. dropped 3 percent, while sales in China rose 46 percent. "We are moving Cadillac from having this very strong U.S.-centric focus to having a global focus. The time will come when we will sell more Cadillacs in China than here," said Cadillac President Johan de Nysschen in an interview. With sales going up in China, this gives the brand some flexibility from transitioning a sedan-heavy lineup to adding more crossovers beginning in mid-2018 for the U.S. Currently, the XT5 serves as the brand's sole crossover and best-selling model (2016 saw 39,485 XT5s sold). Not a good thing since light trucks currently account for 60 percent of total U.S. car sales. "The majority of our portfolio is exposed to downdraft, while we can't really capitalize adequately on all the opportunities that exist with the swing of demand into crossovers. Now, this will be remedied, of course, over time as we expand our portfolio, but in the meantime it is our reality," said de Nysschen. Dealers though don't get to have that breathing space. An 18-month window without any new products is making them very anxious. "We're in the retail business. We live and breathe month to month and weekend to weekend. There is a lot of product out there on the horizon, but nothing very soon," said Bill Wallace, owner of Wallace Cadillac in Stuart, Florida. The next product is expected to a compact crossover known as the XT3, due in mid-2018. Source: Automotive News (Subscription Required) Pic Credit: William Maley for Cheers & Gears
  18. China has given Cadillac a bit of breathing room when it comes to sales and working on filling out their lineup. Automotive News reports overall sales of Cadillac vehicles in the U.S. dropped 3 percent, while sales in China rose 46 percent. "We are moving Cadillac from having this very strong U.S.-centric focus to having a global focus. The time will come when we will sell more Cadillacs in China than here," said Cadillac President Johan de Nysschen in an interview. With sales going up in China, this gives the brand some flexibility from transitioning a sedan-heavy lineup to adding more crossovers beginning in mid-2018 for the U.S. Currently, the XT5 serves as the brand's sole crossover and best-selling model (2016 saw 39,485 XT5s sold). Not a good thing since light trucks currently account for 60 percent of total U.S. car sales. "The majority of our portfolio is exposed to downdraft, while we can't really capitalize adequately on all the opportunities that exist with the swing of demand into crossovers. Now, this will be remedied, of course, over time as we expand our portfolio, but in the meantime it is our reality," said de Nysschen. Dealers though don't get to have that breathing space. An 18-month window without any new products is making them very anxious. "We're in the retail business. We live and breathe month to month and weekend to weekend. There is a lot of product out there on the horizon, but nothing very soon," said Bill Wallace, owner of Wallace Cadillac in Stuart, Florida. The next product is expected to a compact crossover known as the XT3, due in mid-2018. Source: Automotive News (Subscription Required) Pic Credit: William Maley for Cheers & Gears View full article
  19. More and more police departments are going towards crossovers and SUVs for their fleets. According to Automotive News Canada, police departments are going with these vehicles over their sedan counterparts as they are able to fit all of their equipment needed on a daily basis. Officers like them as crossovers and SUVs are easier to get in and out. “We’re all dealing with the same issue, and that is the vehicles are getting smaller, yet there’s still demand for more gadgets and equipment put into those cars. It’s always a bit of a tradeoff and a challenge to make it all fit,” Julie Furlotte, the Royal Canadian Mounted Police's national mobile assets manager. The RCMP's current fleet is made up of around 1,200 to 1,300 police package sedans and 1,600 police package utility vehicles. There is also another plus point for utility vehicles, durability. “I’m hearing from my customers anyway that when they look at the sedan versus the SUVs, the SUVs are a little bit more expensive (but) they actually get better durability out of them,” said GM Canada’s manager of fleet marketing and government sales. There is the question of the performance gap. Pursuit vehicles are mostly sedans as they offer better than their utility counterparts. But that is changing. Sgt. Michael McCarthy of the Michigan State Police (MSP) precision-driving team - they're the group behind the annual test of pursuit-rated vehicles - says the performance gap is shrinking. “LAPD (Los Angeles Police Department) are buying a larger percentage of SUVs than they are of the sedans. They are very capable. They have a fairly short turning radius. They’re deceptively fast.” Source: Automotive News Canada (Subscription Required) View full article
  20. More and more police departments are going towards crossovers and SUVs for their fleets. According to Automotive News Canada, police departments are going with these vehicles over their sedan counterparts as they are able to fit all of their equipment needed on a daily basis. Officers like them as crossovers and SUVs are easier to get in and out. “We’re all dealing with the same issue, and that is the vehicles are getting smaller, yet there’s still demand for more gadgets and equipment put into those cars. It’s always a bit of a tradeoff and a challenge to make it all fit,” Julie Furlotte, the Royal Canadian Mounted Police's national mobile assets manager. The RCMP's current fleet is made up of around 1,200 to 1,300 police package sedans and 1,600 police package utility vehicles. There is also another plus point for utility vehicles, durability. “I’m hearing from my customers anyway that when they look at the sedan versus the SUVs, the SUVs are a little bit more expensive (but) they actually get better durability out of them,” said GM Canada’s manager of fleet marketing and government sales. There is the question of the performance gap. Pursuit vehicles are mostly sedans as they offer better than their utility counterparts. But that is changing. Sgt. Michael McCarthy of the Michigan State Police (MSP) precision-driving team - they're the group behind the annual test of pursuit-rated vehicles - says the performance gap is shrinking. “LAPD (Los Angeles Police Department) are buying a larger percentage of SUVs than they are of the sedans. They are very capable. They have a fairly short turning radius. They’re deceptively fast.” Source: Automotive News Canada (Subscription Required)
  21. Earlier this week, we reported that General Motors was working on a compensation plan for owners of 2016 Buick Enclave, Chevrolet Traverse, and GMC Acadia crossovers that had inflated fuel economy numbers. Yesterday, the company unveiled the plan. Automotive News and Reuters reports that GM will offer buyers the choice of either debit card (ranging from $450 to $1,500) or a 48 month/60,000 mile extended warranty. Those who are leasing the crossovers in question will only get the debit card. The amount a person will get will vary due to various factors including the difference between the inflated and actual fuel economy figures. “We want all of our customers to have a great ownership experience, so we designed this reimbursement program to provide full and fair compensation in a simple, flexible and timely manner,” said a GM spokesman in a statement. How much will this cost GM? A source tells Reuters that it will be about $100 million. Source: Automotive News (Subscription Required), Reuters View full article
  22. Earlier this week, we reported that General Motors was working on a compensation plan for owners of 2016 Buick Enclave, Chevrolet Traverse, and GMC Acadia crossovers that had inflated fuel economy numbers. Yesterday, the company unveiled the plan. Automotive News and Reuters reports that GM will offer buyers the choice of either debit card (ranging from $450 to $1,500) or a 48 month/60,000 mile extended warranty. Those who are leasing the crossovers in question will only get the debit card. The amount a person will get will vary due to various factors including the difference between the inflated and actual fuel economy figures. “We want all of our customers to have a great ownership experience, so we designed this reimbursement program to provide full and fair compensation in a simple, flexible and timely manner,” said a GM spokesman in a statement. How much will this cost GM? A source tells Reuters that it will be about $100 million. Source: Automotive News (Subscription Required), Reuters
  23. Sales of crossovers have been booming in the past year thanks to lower gas prices. Sensing a huge opportunity, General Motors is planning to add more crossovers to its various brands. The Detroit Bureau reports that Cadillac is planning to add a crossover that will compete with the likes of the Audi Q3 and Mercedes-Benz GLA. We first reported on this back in November as Cadillac plans to add a compact, subcompact, and full-size crossover to its lineup in the next few years. No mention was given in either report of when we'll see the subcompact crossover. Meanwhile at Chevrolet, sources say the brand is considering a new midsize model to slot in between the Equinox and Traverse. This model would come with three-rows and compete against the likes of the Toyota Highlander and Ford Edge. Chevrolet is expected to move the Equinox slight down market and the Traverse slightly up market to give the new model some breathing room. Source: The Detroit Bureau
  24. Sales of crossovers have been booming in the past year thanks to lower gas prices. Sensing a huge opportunity, General Motors is planning to add more crossovers to its various brands. The Detroit Bureau reports that Cadillac is planning to add a crossover that will compete with the likes of the Audi Q3 and Mercedes-Benz GLA. We first reported on this back in November as Cadillac plans to add a compact, subcompact, and full-size crossover to its lineup in the next few years. No mention was given in either report of when we'll see the subcompact crossover. Meanwhile at Chevrolet, sources say the brand is considering a new midsize model to slot in between the Equinox and Traverse. This model would come with three-rows and compete against the likes of the Toyota Highlander and Ford Edge. Chevrolet is expected to move the Equinox slight down market and the Traverse slightly up market to give the new model some breathing room. Source: The Detroit Bureau View full article
  25. Mazda's North American office will be getting a new CEO early next year, and he believes that crossovers will bring good things to the brand. Masahiro Moro, currently Mazda's global sales and marketing executive and soon to be the CEO of Mazda' North American office in January told Automotive News that to build up customer loyalty and profits for the brand, they would need to increase sales of their crossovers. Currently, Mazda relies heavily on the Mazda3 for sales in North America. While popular, margins on the were very tight. Also, customers who bought the 3 tended to go to other makes when getting a new vehicle. "Loyalty is very low historically. With the new-generation product, our focus is how we can treat customers better and keep them loyal," said Moro. By putting more focus on crossovers, Moro explained that it would reduce the reliance on the 3 for sales. It also allows for more profit as crossover buyers tend to go heavy on the options and are likely to return to Mazda to buy another vehicle. "Our opportunity here is to recapture those customers or gain new customers through the crossover vehicles," said Moro. "In light of this, I wish that more than 50 percent of our total [u.S.] sales in two or three years be crossovers." Currently, Mazda has moved 121,622 crossovers through November. That represents 42 percent of total sales in the U.S. of 289,889. Source: Automotive News (Subscription Required)

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