AD #2846 – 23 States Sue for Fuel Rollback; Automakers Fail Trying to Become #1; Lamborghini Sian Lego Car

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

NEARLY HALF OF U.S. STATE SUE THE TRUMP ADMINISTRATION
We start out today in the U.S. where it looks like almost half the states in the nation are suing the Trump Administration. And it’s all about fuel economy standards. The Trump Administration is still mandating tighter fuel economy regulations, which require a 1.5% annual increase in fuel efficiency through 2026. The entire vehicle fleet has to hit an average of 40.4 miles-per-gallon. That’s weaker than the Obama Administration standards, which called for a 5% annual increase and a fleet average of 46.7 miles-per-gallon. Now 23 states, some of the major cities in those states and 12 environmental groups are suing the Trump Administration, challenging the decision to roll back the standards.

FORD & GM USE FAST-PAYMENT PROGRAMS FOR SUPPLIERS
Small auto suppliers are facing a liquidity crisis, which means they don’t have enough cash on hand. So General Motors and Ford are using fast-payment programs to help them out. They pay the suppliers up front, instead of taking 40 to 60 days. But the suppliers have to pay a financing fee to a bank, and then the automaker pays the lender back in full at a later date. Not a great deal for those suppliers, but it does keep them afloat.

HOW THE RNM ALLIANCE WILL DIVIDE DUTIES
Now to Europe and Japan, where we’re learning more about how Renault, Nissan and Mitsubishi are trying to save their alliance. They’re dividing up who will do what with product and where in the world. Nissan will take the lead in China, North America and Japan; while Renault gets Europe, Russia, South America and North Africa. Mitsubishi takes the lead in the ASEAN and Oceanian countries. On product Renault gets small CUVs, while Nissan gets mid-size CUVs and full-size SUVs. Renault gets vehicle development for electric cars, while Renault and Nissan split development of EV powertrains, with Renault taking small cars and Nissan bigger ones. Mitsubishi gets plug-in hybrids and will collaborate with Nissan on kei cars mainly for the Japanese market.

AUTOMAKERS FAIL TRYING TO BECOME #1
There are many reasons why the Alliance is struggling but here’s our Autoline Insight. The wheels started coming off the Alliance when then-CEO Carlos Ghosn ordered his executives to ramp up Nissan’s market share. Profitability went out the window as they larded on the incentives and pressured their dealers to move the metal. That is a recipe for disaster. We saw it happen around 2007 at Toyota when then-President Katsuaki Watanabe set a goal of being the first automaker to sell 10 million vehicles in a year, and making Toyota #1 in the world. Toyota went on an expansion binge that led to all kinds of problems and a big drop in quality. Watanabe was later forced out. That gave Martin Winterkorn, the CEO of the Volkswagen Group, the idea that VW should be Number 1 in the world, and VW went on an expansion binge. He set crazy market share goals, including selling 1 million vehicles a year in the U.S. market by 2018. I believe this mentality is what set the state for the diesel emissions cheating scandal. So let that be a lesson to the top executives running the car companies. You get to be Number 1 by providing customers exceptional cars, value and service, not by over producing, piling on the incentives and cheating.

GM’S PLAN FOR WHITE-COLLAR WORKERS RETURNING
We’ve heard a lot about blue-collar workers going back to work. But what about white-collar workers? Some GM salaried workers are already back working at its Tech Center in Warren, Michigan. And it has a four-phase plan to bring them all back. Phase 1 already started for employees who have to work onsite, but they can work from home for a limited number of hours during the week. Phase 2 allows more employees back into the office for a limited time each week. Phase 3 will allow those who can do the job remotely back to the office. And Phase 4 is a normal resumption of operations. No timetable was given for Phases 2 through 4. And the offices will be reconfigured to maintain social distancing.

UAW EXECS SUED FOR SEXUAL HARASSMENT
The UAW used to have a reputation as being an honest and clean union. Not anymore. It’s past two presidents and a bunch of officers are going to jail for corruption, and now a number of other union execs are being sued for sexual harassment. A high-ranking female executive accused three union leaders of sexual harassment, saying they created a hostile working environment, failied to take corrective action and cut her salary in half after she complained.

FORD SOFTWARE UPDATE ALLOWS FOR VIRUS-KILLING HEAT
Talk about being in the hot seat. Ford is really cranking up the heat on its fight against the coronavirus. It has a software update for 2013 to 2019 Police Interceptor Utility vehicles that allows the interior temperature to go over 133-degrees Fahrenheit or 56-degrees Celsius for 15 minutes. That will kill off viruses by greater than 99 percent on interior surfaces and materials. Depending on the model year, the software can be activated by pressing the cruise control buttons in a specific order or using a scan tool through the diagnostic port. Once activated, the engine goes to an elevated level and the heat and fan settings automatically turn to high. The software monitors the interior until it hits the right temperature, then it holds it there 15 minutes.

LAMBORGHINI SIAN LEGO TECHNIC KIT
Lamborghini is taking the most powerful car it’s ever made and turning it into one of the least powerful. Lambo teamed up with Lego Technic to make a 1:8th scale model of the Sian FKP 37. That car made its debut at the Frankfurt auto show last year and boasts a hybrid V12 powertrain that has a combined 819 horsepower. The Lego car has an impressive 3,396 pieces and also has a replica of that V12 engine. It even has an adjustable rear spoiler, scissor doors and a fully-functioning eight-speed sequential gearbox. And you can buy one of these kits starting in June.

LEARNING TO FIX THE MACH-E WITH VR
The Mustang Mach-E isn’t in production yet but Ford is already training technicians on how to service the EV. It’s able to do so thanks to virtual reality technology from PIXO VR, a small software startup. Sean Hurwitz, the CEO of PIXO, explains how Ford is using its technology to train techs.

Sean Hurwitz, CEO, PIXO VR
“We are working with Bosch and Bosch is helping us integrate it in with Ford. You know, PIXO is a 10-year-old company, we started out in developing virtual reality content. Quickly realizing the value of immersing someone in such an interactive experience, like technicians or mechanics. And just by putting on the headset, you can really save time, money and even lives, when you’re simulating very dangerous concepts or training. So we’ve also launched a cloud based platform that allows the users to access, distribute and manage this content. If you think of Bosch and think of Ford and how many technicians or how many users and how many training centers and how many dealers globally. Then you also need something to access and manage that content as well.”

SONY WILL FEATURE HYUNDAI’S IN UPCOMING MOVIES
You ought to be in pictures. That’s what Sony told Hyundai. So they teamed up. Sony will use Hyundai’s newest vehicles and technologies in a number of movies, starting with Uncharted, which comes out in July of next year. Hyundai will also offer cross marketing support and they’ll both collaborate on a wide range of content creation.

VIRTUAL 24 HOURS OF LE MANS
E-Racing is taking on a new challenge, the endurance race. With the 24 Hours of Le Mans postponed until September, they’re going to do a virtual race on June 13 and 14. Fifty cars from both GTE and LMP classes will start the race and it includes simulated scenarios just like the real thing, like damage, technical issues, pit stops, day and night racing and driver changes. Each team will have 4 drivers, but can have no more than 2 professional sim racers. There are some advantages to racing from the comfort of your home. As one driver put it, “at least I will be able to sleep in my own bed this time.”

And that wraps up today’s report, thanks for watching.