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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

It came as no surprise that Toyota decided to drop the Yaris Liftback for 2019 - they only sold 1,940 models last year. In our original report, Toyota spokeswoman Nancy Hubbell dropped an interesting bit of information by revealing they would have news on the 2020 Yaris at New York. Car and Driver has a possible guess as to what it could be - a rebadged Mazda2 hatchback. Some quick background: The current Toyota Yaris sedan is just a rebadged version of the Mazda2 sedan sold elsewhere in the world. It was introduced back in 2016 as the Scion iA and then became the Yaris iA a year later. Car and Driver is expecting the hatchback version to get the same front end as the Yaris sedan, while the rest of the body is unchanged. Power will remain the 1.5L inline-four teamed with either a six-speed manual or automatic. Source: Car and Driver View full article

There is a growing number of automakers who are announcing plans to electrify their lineup, while others are considering it. GMC is the latter category according to a new report from CNBC. “Certainly, it’s something we’re considering," said Duncan Aldred, vice president of GMC when asked if there was the possibility of an electric Sierra. Aldred wouldn't say much more than that except mentioning that General Motors CEO Mary Barra has already made comments about "an all-electric future." It wouldn't be surprising if an all-electric Sierra sparks an all-electric Chevrolet Silverado since they are basically the same truck, allowing GM to take advantage of economies of scale and spreading the cost of development. But the cost of batteries is still a big drawback. Researchers at Boston Consulting Group say each individual battery cell generally cost $150 to $200. Aldred said that battery tech is still expensive "that makes it difficult to target mainstream segments, unless a carmaker like GM is willing to accept lower margins." But that's where GMC could take the lead as it is currently positioned as something more premium than its Silverado brethren, with such features as the Multi-Pro tailgate. Ford has already announced plans for an F-150 EV, and there is start-up automaker Rivian with the R1T that is expected to go into production in late 2020. Source: CNBC View full article

Back in November, General Motors announced that it would end production of six models in North America. One of the models listed was the Cadillac CT6 sedan. This surprised a number of people considering that the brand had only refreshed model, and announced some key improvements such as adding Super Cruise and a new twin-turbo V8 engine known as Blackwing. But GM President Mark Reuss and Cadillac President Steve Carlisle said they are looking into various options to keep the CT6 on sale in the U.S. The two explained that model was never meant to be on the chopping with other models such as the Buick LaCrosse and Chevrolet Impala. But officials at the time did not mention those plans in the original announcement in November. "From the very beginning, we never said that CT6 was going away, because we're very keen on launching Blackwing and Super Cruise and all those sort of things," said Carlisle on the floor of the Detroit Auto Show. "We're working hard to find other alternatives to that. We have some time." What are the alternatives being considered? Automotive News reports that GM may move production to another plant (ultimately depending on the negotiations with the UAW to take place later this year), or import the model from China - an idea Carlisle said "would be the least-preferred option." Source: Automotive News (Subscription Required) View full article

Genesis has been building itself up as a competitor to the likes of the German luxury brands, for much lower prices. But it is still missing a few items, like having some sort of crossover or SUV - something that will be launching in the coming year or so. The brand is lacking a performance variant to take on the likes of BMW's M and Mercedes' AMG. However, a comment made by Hyundai product planner Mike O’Brien hints they're looking into it. "A big effort with the G70 was thermal management, to make sure that this car will hold u. We're building for the future. I'll just say that," said O'Brien to Road & Track. Proper thermal management is something essential for new vehicles, but you don't normally hear an automaker talk about it except when it comes to high-performance models. This becomes more intriguing when you take into account that Albert Biermann, now the head of Hyundai's r&d division, worked previously at BMW's M division. More from Road & Track: The comment about possibly badging it as a N model is also interesting. We have reported previously that Genesis has no plans on doing a N, so it hints that Genesis may come up with its own branding for a performance model. Source: Road & Track View full article

For almost two decades, Cadillac has been undergoing a transformation of sorts to become a threat to likes of BMW and Mercedes-Benz. The various models and changes have been met with mixed reactions. But the latest move to make Cadillac the lead brand in General Motors' electric car offensive marks a big change. According to an executive, this is the brand's last chance at success. “We don’t have any chances left with taking Cadillac to a really new place. This is pretty much it,” said GM President Mark Reuss to Reuters. “So we really have to hit the ball here. It’s my job to make sure we do.” Cadillac previewed their first EV on Sunday night during the press preview of the XT6 crossover. No name was given, but the model appears to be a small or midsize crossover. It will be the first vehicle to use GM's dedicated BEV3 platform that has been designed to underpin various types of vehicles and drivetrain layouts. When asked how long it would take for Cadillac to transition to an all-electric lineup, Reuss said it is too early to tell. He expects a combination of electrified and combustion engine models “for quite a few years” in the lineup. Reuss did not elaborate what would happen if the transition to electric faltered. “All I’m focused on is what we’re doing right now…” Reuss said, “and getting momentum back in Cadillac.” Source: Reuters View full article

Christian Meunier, who became the president of Infiniti last week, was very blunt about the QX30 crossover. "(The QX30 is) not a very successful product. We’ll keep selling it for now...but this is not a product that has a future beyond its current life," he said to Motor Authority this week at the Detroit Auto Show. The QX30/Q30 is a result of a partnership between Nissan and Daimler that began back in 2010, with the promise of sharing powertrains and working on various projects. The QX30 and Mercedes-Benz GLA-Class was the first product to come out of this alliance back in 2017. But as we have reported, the partnership seems to be faltering. Last July, a report came out that the joint development of a luxury compact car project was halted between the two. That doesn't mean Infiniti is pulling the completely on the QX30. Meunier revealed that a next-generation model is in the cards that will use an "all-Infiniti platform". He also hinted that the next-generation may have variable-compression engine technology - first used in the QX50 crossover. Source: Motor Authority View full article