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Found 6 results

  1. About three to four years ago, Mini set out an ambitious goal of selling an annual volume of 100,000 vehicles in the U.S. But this goal would never come to fruition. Sales of Mini models have been in decline for the past few years partly due to buyers going towards light trucks and crossovers. BMW executives have since stepped back from this goal is considering whether or not to make Mini vehicles electric-only in the U.S. For dealers, the mixed messages has them concerned. Jason Willis, member of the Mini National Dealer Council expressed these concerns in a interview with Automotive News. "I don't think the dealers have a very clear vision of where the car line is going long term. There is a lot of pride on being a small-car performance company, so my guess is we will continue to be a small-car company. But as far as electric and how we fit in, we're still waiting to hear that plan," said Willis. "Our biggest goal is to get a clear vision from Mini and the BMW Group of where the car line is going — whether we're going to continue to be a small-car brand. Are we going to go fully electric? What is the game plan over the next three, four, five years?" Next month, Mini dealers will meet with BMW's leaders in Las Vegas. Willis hopes they get some answers, especially with electric vehicles. "We're in the wait-and-see pattern on what electric vehicle demand really is going to be. Here in the Midwest, there's a lot of talk about electric cars but very little demand. Dealers just want to have a plan for the future. To be an electric-only car company, I'm not sure that is the goal that the dealers have. But to have some electric vehicle options to differentiate us in the market is a want," Willis also hopes BMW can give Mini more support in marketing in their products, along possibly offering a mainstream product. Source: Automotive News (Subscription Required) View full article
  2. William Maley

    Dealers to Mini: Do You Have A Vision?

    About three to four years ago, Mini set out an ambitious goal of selling an annual volume of 100,000 vehicles in the U.S. But this goal would never come to fruition. Sales of Mini models have been in decline for the past few years partly due to buyers going towards light trucks and crossovers. BMW executives have since stepped back from this goal is considering whether or not to make Mini vehicles electric-only in the U.S. For dealers, the mixed messages has them concerned. Jason Willis, member of the Mini National Dealer Council expressed these concerns in a interview with Automotive News. "I don't think the dealers have a very clear vision of where the car line is going long term. There is a lot of pride on being a small-car performance company, so my guess is we will continue to be a small-car company. But as far as electric and how we fit in, we're still waiting to hear that plan," said Willis. "Our biggest goal is to get a clear vision from Mini and the BMW Group of where the car line is going — whether we're going to continue to be a small-car brand. Are we going to go fully electric? What is the game plan over the next three, four, five years?" Next month, Mini dealers will meet with BMW's leaders in Las Vegas. Willis hopes they get some answers, especially with electric vehicles. "We're in the wait-and-see pattern on what electric vehicle demand really is going to be. Here in the Midwest, there's a lot of talk about electric cars but very little demand. Dealers just want to have a plan for the future. To be an electric-only car company, I'm not sure that is the goal that the dealers have. But to have some electric vehicle options to differentiate us in the market is a want," Willis also hopes BMW can give Mini more support in marketing in their products, along possibly offering a mainstream product. Source: Automotive News (Subscription Required)
  3. Last week saw the PSA Group (parent company of Citroen and Peugeot) purchasing Opel and Vauxhall from General Motors for $2.3 billion. This move would make the PSA Group the second-largest automaker in Europe. We already know some of the plans that PSA Group has for their new brands such as setting operating profit targets of 2 percent in 2020 (jumps to 6 percent by 2026) and the next-generation Opel/Vauxhall Corsa being the first new product developed with PSA. But as we alluded to in the original news story, there are a lot of questions that remain unanswered such as possible job cuts or what happens to Buick and Holden as they share products with Opel. I have been doing a bit of thinking on these and some other questions. The end result is this piece. 1: Will there be job cuts and plant closures? In 2016, PSA Group employed 172,000 people worldwide. With the acquisition of Opel and Vauxhall, they will be adding close to 42,000 workers (the majority of those from Opel). The number of plants will also increase to 28 due to this purchase. Sooner or later, PSA Group is going have to make cuts. During the press conference announcing the deal, PSA Group CEO Carlos Tavares said the company “would honor existing labor agreements and closing plants is a “simplistic” solution.” That may be true for now, but this might change within the coming years. Some analysts believe PSA Group will close two to three plants within five years. The most likely place where the closures and layoffs could take place is in Great Britain. The reason as we talked about in a story back in February deals with the decision made by British citizens last year with leaving the European Union. “By leaving, the country would lose access to the EU Single Market which guarantees unconstrained trade across the member states. It would mean various countries would be leveraging tariffs on British-made goods, making production in the country less competitive.” Former British member of parliament and business secretary Sir Vincent Cable outlined how bad this decision looks for Vauxhall in a recent interview on BBC Radio 4. There could be a way that the British Government could at least stall the possible closures. Back in October, the British Government worked out a secret deal with Nissan to keep them investing in British car production at their plant in Sunderland. This deal caused an uproar as the details were kept as many believed the British Government would be handing over money to keep Nissan happy. But sources told British newspaper The Independent back in January that the deal had no mention of money. It could be that the British Government could do something similar for PSA Group to keep jobs, but it is too early to say if this will happen or not. 2: Will this affect PSA’s plans of entering the U.S.? Probably not. Let’s remember that PSA Group is working through a ten-year plan that may or may not see the return of the Citroen and Peugeot, along with the introduction of DS to the country. Already, the first part of this plan is gearing up for the launch of a car sharing service next month. There is also extensive research going on into the U.S. marketplace. But could there be a possibility of Opel or Vauxhall vehicles being sold here? It would not be surprising if there isn’t talk about this at PSA Group’s HQ. But there is a slight complication to this idea. As part of the sale, PSA Group cannot sell any Opel vehicles developed by GM anywhere in various markets outside of Europe (China and U.S. for example) until they transition to PSA platforms. That means a number of models such as the Astra, Insignia, and Mokka are out of the question for the time being. If Opel was chosen to be one of the brands PSA would sell in the U.S., they might not have a full line of vehicles to sell due to this clause. 3: What does the future hold for Buick and Holden? If there are some losers from the sale of Opel, it has to Buick and Holden. Buick has found some success with Opel products as the Encore (rebadged Mokka) has become one the best-selling models for the brand. Holden is getting a shot in the arm as the Astra will hopefully help their fortunes in the compact space, and the new Commodore (rebadged Insignia) has a tough task ahead of it with living up to an iconic name. For the time being, Opel will continue supplying models to both brands. It is what happens in the future that many are concerned about. During the Geneva Motor Show, GM President Dan Ammann said something very interest to Australian journalists about the future of Holden’s products. This makes sense as the Astra was only launched and the Commodore is getting ready to go on sale. But I wouldn’t be surprised if talks begin very soon about this very topic. The same talks are likely to begin at Buick soon where they face the same issue for the Regal and Encore. Our hunch is Buick might have the easier time of two. The Encore would continue on since it shares the same platform as the Chevrolet Trax. As for the Regal, it could leave Buick’s lineup once the next-generation model runs its course. 4: Does GM lose anything with this deal? There has been a lot of talk about how much money will be freed up from the sale of Opel/Vauxhall for GM, along with making a bit more profit. But it comes at a cost that could hurt GM down the road. The recent crop of compact and midsize sedans from GM owe a lot to Opel’s engineering knowledge. Vehicles that excel in driving dynamics and fuel economy are worth their weight in gold when it comes to the European marketplace. As we know, one part of why GM went into bankruptcy was the lack of competitive small and midsize cars that got good fuel economy. Opel would prove to be GM’s savior with this key knowledge. Right now, compacts and midsize sedans aren’t selling as consumers are directing their attention to crossovers and SUVs. This is due in part to lower gas prices. But sooner or later, the price of gas will go back up and cause many to go back to smaller vehicles. With talk about GM scaling back on their small and midsize car lineup, this decision could have consequences down the road. Plus with Opel out of the picture, GM doesn’t have someone it can rely on to get these models back to the forefront. We can hope GM’s North American office has learned some stuff when working with their European counterparts. View full article
  4. Last week saw the PSA Group (parent company of Citroen and Peugeot) purchasing Opel and Vauxhall from General Motors for $2.3 billion. This move would make the PSA Group the second-largest automaker in Europe. We already know some of the plans that PSA Group has for their new brands such as setting operating profit targets of 2 percent in 2020 (jumps to 6 percent by 2026) and the next-generation Opel/Vauxhall Corsa being the first new product developed with PSA. But as we alluded to in the original news story, there are a lot of questions that remain unanswered such as possible job cuts or what happens to Buick and Holden as they share products with Opel. I have been doing a bit of thinking on these and some other questions. The end result is this piece. 1: Will there be job cuts and plant closures? In 2016, PSA Group employed 172,000 people worldwide. With the acquisition of Opel and Vauxhall, they will be adding close to 42,000 workers (the majority of those from Opel). The number of plants will also increase to 28 due to this purchase. Sooner or later, PSA Group is going have to make cuts. During the press conference announcing the deal, PSA Group CEO Carlos Tavares said the company “would honor existing labor agreements and closing plants is a “simplistic” solution.” That may be true for now, but this might change within the coming years. Some analysts believe PSA Group will close two to three plants within five years. The most likely place where the closures and layoffs could take place is in Great Britain. The reason as we talked about in a story back in February deals with the decision made by British citizens last year with leaving the European Union. “By leaving, the country would lose access to the EU Single Market which guarantees unconstrained trade across the member states. It would mean various countries would be leveraging tariffs on British-made goods, making production in the country less competitive.” Former British member of parliament and business secretary Sir Vincent Cable outlined how bad this decision looks for Vauxhall in a recent interview on BBC Radio 4. There could be a way that the British Government could at least stall the possible closures. Back in October, the British Government worked out a secret deal with Nissan to keep them investing in British car production at their plant in Sunderland. This deal caused an uproar as the details were kept as many believed the British Government would be handing over money to keep Nissan happy. But sources told British newspaper The Independent back in January that the deal had no mention of money. It could be that the British Government could do something similar for PSA Group to keep jobs, but it is too early to say if this will happen or not. 2: Will this affect PSA’s plans of entering the U.S.? Probably not. Let’s remember that PSA Group is working through a ten-year plan that may or may not see the return of the Citroen and Peugeot, along with the introduction of DS to the country. Already, the first part of this plan is gearing up for the launch of a car sharing service next month. There is also extensive research going on into the U.S. marketplace. But could there be a possibility of Opel or Vauxhall vehicles being sold here? It would not be surprising if there isn’t talk about this at PSA Group’s HQ. But there is a slight complication to this idea. As part of the sale, PSA Group cannot sell any Opel vehicles developed by GM anywhere in various markets outside of Europe (China and U.S. for example) until they transition to PSA platforms. That means a number of models such as the Astra, Insignia, and Mokka are out of the question for the time being. If Opel was chosen to be one of the brands PSA would sell in the U.S., they might not have a full line of vehicles to sell due to this clause. 3: What does the future hold for Buick and Holden? If there are some losers from the sale of Opel, it has to Buick and Holden. Buick has found some success with Opel products as the Encore (rebadged Mokka) has become one the best-selling models for the brand. Holden is getting a shot in the arm as the Astra will hopefully help their fortunes in the compact space, and the new Commodore (rebadged Insignia) has a tough task ahead of it with living up to an iconic name. For the time being, Opel will continue supplying models to both brands. It is what happens in the future that many are concerned about. During the Geneva Motor Show, GM President Dan Ammann said something very interest to Australian journalists about the future of Holden’s products. This makes sense as the Astra was only launched and the Commodore is getting ready to go on sale. But I wouldn’t be surprised if talks begin very soon about this very topic. The same talks are likely to begin at Buick soon where they face the same issue for the Regal and Encore. Our hunch is Buick might have the easier time of two. The Encore would continue on since it shares the same platform as the Chevrolet Trax. As for the Regal, it could leave Buick’s lineup once the next-generation model runs its course. 4: Does GM lose anything with this deal? There has been a lot of talk about how much money will be freed up from the sale of Opel/Vauxhall for GM, along with making a bit more profit. But it comes at a cost that could hurt GM down the road. The recent crop of compact and midsize sedans from GM owe a lot to Opel’s engineering knowledge. Vehicles that excel in driving dynamics and fuel economy are worth their weight in gold when it comes to the European marketplace. As we know, one part of why GM went into bankruptcy was the lack of competitive small and midsize cars that got good fuel economy. Opel would prove to be GM’s savior with this key knowledge. Right now, compacts and midsize sedans aren’t selling as consumers are directing their attention to crossovers and SUVs. This is due in part to lower gas prices. But sooner or later, the price of gas will go back up and cause many to go back to smaller vehicles. With talk about GM scaling back on their small and midsize car lineup, this decision could have consequences down the road. Plus with Opel out of the picture, GM doesn’t have someone it can rely on to get these models back to the forefront. We can hope GM’s North American office has learned some stuff when working with their European counterparts.
  5. General Motors' problems with the 1.6 million vehicle recall over a faulty ignition switch are growing. This week, the National Highway Traffic Safety Administration (NHTSA) has sent a 27 page document with 107 questions asking about the recall and the timeline. Questions range from how the investigation process on the ignition "was not as robust as it should have been" to when GM decided to start investigating crashes with the 2005-2007 Chevrolet Cobalt and 2007 Pontiac G5 where the air bag did not deploy. NHTSA has also requested documents ranging from complaints from owners to lawsuits involving GM vehicles in the recall. "We are a data-driven organization, and we will take whatever action is appropriate based on where our findings lead us," NHTSA said in a statement. "In addition to getting NHTSA the information they need, we are doing what we can now to ensure our customers' safety and peace of mind. We want our customers to know that today's GM is committed to fixing this problem in a manner that earns their trust," said GM in a email statement to Automotive News. General Motors has until April 3rd to comply with the document. Source: Automotive News (Subscription Required), NHTSA William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.comor you can follow him on twitter at @realmudmonster. Press Release and NHTSA's Special Order document is on Page 2 "The National Highway Traffic Safety Administration has issued General Motors LLC a Special Order as part of a Timeliness Query investigation of the automaker. The Special Order is part of the agency’s ongoing investigation into the timeliness of General Motors’ recall of faulty ignition switches to determine whether GM properly followed the legal processes and requirements for reporting recalls. General Motors’ response to this Special Order must be provided to NHTSA by April 3, 2014. We are a data-driven organization, and we will take whatever action is appropriate based on where our findings lead us." View full article
  6. General Motors' problems with the 1.6 million vehicle recall over a faulty ignition switch are growing. This week, the National Highway Traffic Safety Administration (NHTSA) has sent a 27 page document with 107 questions asking about the recall and the timeline. Questions range from how the investigation process on the ignition "was not as robust as it should have been" to when GM decided to start investigating crashes with the 2005-2007 Chevrolet Cobalt and 2007 Pontiac G5 where the air bag did not deploy. NHTSA has also requested documents ranging from complaints from owners to lawsuits involving GM vehicles in the recall. "We are a data-driven organization, and we will take whatever action is appropriate based on where our findings lead us," NHTSA said in a statement. "In addition to getting NHTSA the information they need, we are doing what we can now to ensure our customers' safety and peace of mind. We want our customers to know that today's GM is committed to fixing this problem in a manner that earns their trust," said GM in a email statement to Automotive News. General Motors has until April 3rd to comply with the document. Source: Automotive News (Subscription Required), NHTSA William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.comor you can follow him on twitter at @realmudmonster. Press Release and NHTSA's Special Order document is on Page 2 "The National Highway Traffic Safety Administration has issued General Motors LLC a Special Order as part of a Timeliness Query investigation of the automaker. The Special Order is part of the agency’s ongoing investigation into the timeliness of General Motors’ recall of faulty ignition switches to determine whether GM properly followed the legal processes and requirements for reporting recalls. General Motors’ response to this Special Order must be provided to NHTSA by April 3, 2014. We are a data-driven organization, and we will take whatever action is appropriate based on where our findings lead us."

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