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The COVID-19 pandemic has basically brought most of the world to halt. Orders to stay at home, businesses either having workers to their work from home or closing down, and unemployment skyrocketing is causing the economy to crater. There are efforts to try and jump-start the economy such as $1,200 stimulus checks. But an executive at Ford wants to see a return of a "cash for clunkers" like program. “We think some level of stimulus somewhere on the other side of this would help not only the auto industry and our dealers, which are a huge part of our overall economy, but will help the customers as well,” said Mark LaNeve, Ford’s vice president of U.S. marketing, sales and service to Bloomberg. “Cash for clunkers was very effective at that time. It would be nice to think we could have something equally as effective for 2020 when we get out of this because it was a great program.” According to LaNeve, internal discussions are taking place at Ford about doing a similar program and there are plans to bring the Government in to these talks. When asked by Automotive News about this, Ford spokeswoman Rachel McCleery said, "The auto industry is America’s economic engine.We are encouraging Congress to look at a variety of ways to drive job creation, increase demand, support customers and provide long-term stability for the entire auto ecosystem." A brief refresher on the Cash for Clunkers program. In 2009, the U.S. Government introduced a billion initiative called the Car Allowance Rebate System, which gave a voucher worth between $2,900 and $4,500 to anyone replacing a vehicle newer than 1984. Their old vehicle would be taken away and disposed of. The program was nicknamed Cash for Clunkers. On the surface, the program was a success. Within first month, all of the funds were exhausted. This prompted the U.S. congress infuse an addition two billion into the program, which would be all gone within 17 days. But begin to look deeper and the results are mixed. In 2012, a study published in the Quarterly Journal of Economics described the program as being a bit of a wash, "...the effect of the program on auto purchases is almost completely reversed by as early as March 2010 — only seven months after the program ended.” Other studies have come to the same conclusion. There's also the question of how many perfectly good used cars were taken off the road due to the program. Source: Bloomberg via Automotive News (Subscription Required), The Drive, The Truth About Cars View full article

The coronavirus has caused a number of auto shows to either be pushed back (New York) or cancelled (Geneva). Add another show to the list as the Detroit Free Press is reporting tonight at the Detroit Auto Show has been cancelled. In a memo that was sent to sponsors today, organizers of the show said that the TCF Center (formally known as Cobo Hall) has been designated as field hospital by Federal Emergency Management Administration [FEMA] for the next six months. "The health and welfare of the citizens of Detroit and Michigan is paramount. TCF Center is the ideal location for this important function at this critical and unprecedented time,” NAIAS executive director Rod Albert wrote in the memo obtained by the Free Press. The news was confirmed by ABC affiliate WXYZ after speaking with the chair of the 2020 show, Doug North. "The North American International Auto Show is officially canceled. TCF is working with FEMA to use the center to deal with the COVID-19 outbreak," said North. Ford and General Motors also confirmed the cancellation to The Detroit News. Michigan is becoming one of the hardest hit states with COVID-19. State officials announced today that there are 4,650 confirmed cases and 111 deaths linked to COVID-19. Wayne County, where the show takes place has the highest numbers of the state - 2,316 confirmed cases and 46 deaths. This was going to be a big year for the Detroit Auto Show with the move to the summer. Plans included rides and drives; an off-road course, and demonstration of autonomous vehicles. Source: Detroit Free Press, The Detroit News, WXYZ View full article

General Motors will be bringing back the Hummer name to sell a new electric truck as part of the GMC lineup. The Wall Street Journal first broke the news yesterday with GM moving forward on plans to bring Hummer back that was first reported back in June. The report also said that the company would tout the return with a Super Bowl ad featuring NBA star LeBron James. GM declined to comment. The decision is likely due to the planned $3 billion investment for the Detroit-Hamtramck plant that we reported back in October. The investment is to gear up the plant to build an electric pickup for GMC and an electric Cadillac SUV by 2023. But in 2021, the plant will produce a "low volume BT1 pickup" under a different brand. At the time we speculated that it may be Hummer. This seems to lineup with the reporting done by the Wall Street Journal which says the truck will be similar in design to the Jeep Renegade. Bloomberg adds that there are plans for a large SUV for Hummer if the truck proves successful according to sources. The sources also say that the company is considering selling the new Hummer truck in existing dealers under the name of “Hummer by GMC.” Source: Wall Street Journal (Subscription Required), Automotive News (Subscription Required) H/T to @balthazar for alerting us to this story View full article

Infiniti is planning on launching five new models over the next 3 years. The first will be the QX55 that we reported on the other day. It is a crossover coupe version of their QX50 crossover and is expected to be powered by the same 2.0-liter variable compression engine. Next up is the redesigned QX60. Expect it to look much more SUV like than that of a crossover. Infiniti says the styling will be dramatically different than the QX60 on the lots today. They mention that the gas powered model will have a large grille, which implies there will be an electrified model coming as well. They are also planning on offering two 12.3-inch touch screens and a two-tone roof. The QX60 is Infiniti's best selling vehicle. After that, Infiniti will be launching three electrified vehicles, a crossover and two sedans. The vehicle will be offered as fully electric or with serial hybrid technology which is similar to that in the Chevy Volt where a gasoline engine recharges the batteries which power the car. Styling is expected to take after the Q-Inspiration concept shown at the 2019 Detroit Auto Show. The three vehicles are following a "three vehicles, one platform" concept and will all be related. View full article

Alfa Romeo still has some crossover rollouts coming, however a recent peak at the quarterly earning statement gave a clue as to what else is happening at the brand, and the truth is, it isn't much. During the earnings call this week, CEO Mike Manley said that Alfa's "future product lineup has been significantly scaled back with a corresponding reduction in capital spend." Alfa currently has two products on the market in North America, the Giulia sedan and Stelvio crossover. Those will both be getting a refresh for the 2021 model year. That same year, a new C-segment crossover will make an appearance. This model, previewed by the Tonale concept car, will ride on the same platform as the Fiat 500x and Jeep Renegade. It should eventually be offered as a plug-in hybrid as well. After that, a B-segment crossover should appear as well. Once the crossovers are on the road though, there isn't much left. The expected return of the GTV and 8C Competizione don't appear anywhere in the plans. View full article

Fiat Chrysler Automobiles has been lagging behind other automakers in terms of electrification, tending to focus more on how many more vehicles they drop the Hellcat V8 into. But that appears to be changing. The Detroit Bureau had the chance to speak with FCA's new global powertrain chief, Micky Bly. He said that within the next twelve to eighteen months, FCA would try to reposition itself as one of the industry’s leaders in electrification. “We’re not leaders now,” said Bly, “but we will be soon.” Bly wouldn't go into detail as to how FCA plans to do this. But we already know that a number of FCA brands have plans for hybrid and electric vehicles - including a new Fiat 500e. Sources also revealed that there is the possibility of the Hellcat V8 being teamed with a mild-hybrid setup that could add 130 pound-feet, and only add around 100 pounds to the overall curb weight. There is also the possibility of a production version of the Chrysler Portal concept, going with a full electric powertrain. Source: The Detroit Bureau View full article

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

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

If you were hoping that Chevrolet would bring the house down next month with the debut of the mid-engine Corvette at the Detroit Auto Show, we have some bad news for you. GM Authority has learned from GM that Chevrolet isn't planning to show anything car or crossover related at the show. Motor Authority was able to confirm this report by speaking to sources who know GM's plans for future vehicles. It is expected that the Cadillac XT6 crossover will debut at the show. Rumor has it that GM could debut the mid-engine Corvette at the New York Auto Show - the original 1953 Corvette debuted at the Motorama event that year in New York - or hold its own event to have the media focus on the new model and nothing else. The latter option seems the most likely to us. We'll keep you posted if anything changes. Source: GM Authority, Motor Authority View full article

Next year will see Volkswagen unveil the next-generation Golf GTI. It was reported that the model would utilize a mild-hybrid setup to boost fuel economy and improve low-end response. This decision was made under the leadership of former Volkswagen chairman Matthias Müller and would have become the flagship model for a new range of mild-hybrid models badged as IQ. But a new report from Autocar says the new chairman, Herbert Diess has canned the powertrain. No reason was given as to why this decision was reversed. Volkswagen is still planning to do mild-hybrid versions of the standard Golf that will utilize a 48-Volt electrical system. Autocar says the next-generation GTI will use an updated version of the turbocharged 2.0L four-cylinder producing either 252 or 286 horsepower. The current model in the U.S. punches out 227 horsepower. A six-speed manual or seven-speed dual-clutch will be the available transmissions. Source: Autocar View full article

That rumor about Ford introducing a smaller truck below the Ranger from last summer? It seems we have gotten some confirmation on that. Jim Farley, Ford's president of global markets confirmed the plans during the Deutsche Bank Global Auto Industry Conference in Detroit - the same place where he dropped the F-150 electric bombshell. Ford is "investing in more affordable versions of our truck business" and that "you can expect new nameplates below where we compete today," Farley said at the conference. No timeframe was given. Interestingly, a Ford spokesman said “we’ll have more details to share about new nameplates in the future.” Usually, they go with the boilerplate answer of 'no comment." Last July, Automobile magazine reported Ford was working on a replacement for the Brazilian market Courier subcompact pickup truck. The new model would switch from the Fiesta to the Focus platform. Apparently, this project has caught the eye of Ford's U.S. office and there is talk about bringing here by 2022. Source: Automotive News (Subscription Required) View full article

Lexus has some has some big plans in store for the F performance sub-brand. Motor1 is reporting that the luxury brand is planning to keep the Track Edition nameplate for some time. “The plan right now is to build 60 [RC F] Track Editions...and it’s going to be 40 of the white and 20 of the matte gray [cars for 2020]. It’s [our] intention to have a version of the Track Edition in subsequent [model] years,” said Cooper Ericksen, vice president for product planning and strategy at Lexus. It is unclear what Lexus has planned for the future of Track Edition. Ericksen said everything is up in the air ranging from improving the performance to possibly applying the treatment to other models (LC Track Edition anyone?). “We’re having fun with the engineers to figure out what [Track Edition] can look like in the future." Another item being talked about for F is building a crossover or SUV. Ericken said that a key topic of discussion is whether or not they should focus on doing an on-road version or buck the trend and do an off-road one. “[What] we're currently trying to figure out is [if] the on-road performance aspect [is] more important [for Lexus] to invest in than the off-road performance.” Source: Motor1, 2 View full article