AD #2850 – GM Permanently Lowers Costs; All-New BMW 4 Series Coupe Revealed; Rivian Working on Charging Network

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

AUTO INDUSTRY SPEAKS OUT AGAINST RACIAL INJUSTICE
We start out today in the United States where large protests across the country have riveted attention on racial inequality. And the automotive industry is speaking out as well. GM CEO Mary Barra sent a letter to employees saying she was “disgusted” by the situation. Bill Ford promised that the company would start a deeper dialog on racial injustice. Rivian told African Americans that “we will carry your voices.” Elon Musk questioned why the other police officers involved in the death of George Floyd in Minneapolis have not been charged. And Mike Manley, FCA’s CEO, said “I emphatically reject the hatred and prejudice.” That’s interesting to hear Mike Manley speaking out since FCA is not an American company. Foreign automakers operating in the U.S. try their utmost to stay out of American politics, because they don’t want to be seen as meddling in the affairs of other countries. Other than that, we believe they would be speaking out. And we were pleased to see the Nissan Foundation, which was founded to bridge racial divides, quote Martin Luther King, Jr. and resolve to be part of the solution. And we here at Autoline are so pleased to see the industry speaking out so strongly on this issue.

GM PERMANENTLY LOWERED COSTS DURING PANDEMIC
Let’s go back to Mary Barra for a moment. She says GM will emerge from the pandemic with permanently lower costs. During an investor event yesterday, she said the shutdown gave the company the chance to go through all of its expenses and found things they don’t need to do and things they can do more efficiently. That includes using fewer vehicle platforms and reducing complexity even more, so GM can focus on only building vehicles with high customer demand. GM’s inventory is tight right now, so it’s focusing on ramping up production of trucks and SUVs with the lowest days’ supply.

MAY SALES BETTER THAN EXPECTED
We got the May numbers for new car sales in the U.S. market, and while they were down significantly, they’re better than many expected. Sales were down almost 30% and Wards reports that the seasonally adjusted rate came in at 12.2 million units. Automakers sold over 1.1 million new vehicles last month, which is a surprisingly strong number. Trucks fared much better than passenger cars. They were down 24%, while cars fell 44%. And trucks accounted for nearly 78% of the total mix. As always, some automakers fared better than others. Nissan did the worst of all, with sales down 50%, but Mazda was down only 1% and Volvo down 2%. Somebody needs to study how they’ve held up so well. What really caught our eye is that Tesla is quickly closing the gap with Audi. A year ago in May Tesla was behind Audi by 6,500 cars. Last month it was only behind by 1,400. You heard it here first. 2020 could be the year when Tesla surpasses Audi in the American market.

U.S. May, 2020 Sales
SAAR	12.2 Million
Sales	1.1 Million	-29.5%
Car	254,650	-44%
Truck	867,690	-24%

U.S. May, 2020 Sales
Audi	12,700	-33%
Tesla	11,300	-8.7%

MEET THE FACE OF THE NEW BMW 4 SERIES COUPE
The all-new BMW 4 Series Coupe made its debut and how can we start without talking about that massive grille? We’ve seen the giant twin kidney design on concepts for years now, but this is the first production model we’ve seen it on. What we find interesting is that the front license plate holder is incorporated into the design of the grille. So, even in states or countries that don’t require a front plate, there’s going to be a flat piece of empty black plastic on the grille. And it will likely be the same with any vehicle that gets the large grille. So, why even have the giant grille? We’re also willing to bet the design staff never sketched the car with it. But moving on, the all-new 4 Series Coupe is longer, wider and lower than the previous generation. As of now, there are two engine options for the U.S. market. A 2.0L turbocharged 4-cylinder with 255 horsepower is standard. It’s mated to an 8-speed automatic and can be paired with rear- or all-wheel drive. The other choice is a turbocharged 3.0L inline-6 with over 380 horsepower. It’s also mated to an 8-speed trans and comes with rear- or all-wheel drive, but features a 48-volt starter/generator as well. The interior is pretty standard for a BMW. An 8.8-inch center touchscreen and 5.1-inch cluster display are standard, but customers can upgrade to a 10.25-inch center screen and 12.3-inch instrument cluster. BMW’s digital personal assistant and a host of driver safety tech are also available. The new 4 Series Coupe is set to launch around the world in October and in the U.S. it will carry a starting price that ranges from about $46,500 to roughly $59,500, including destination charges.

VOLKSWAGEN TEASES NEW ARTEON SEDAN & WAGON
Speaking of new models, here’s our first look at the updated Volkswagen Arteon. It will make its virtual debut later this month, alongside a new station wagon version for Europe. VW says the car will get an all-new interior and will have the option for Travel Assist, which sounds like it will be a hands-free highway cruise control system.

BENTLEY ENDS 6.75L V8 ENGINE PRODUCTION AFTER 61 YEARS
Super expensive cars that sell in low volumes tend to stick around a lot longer than traditional vehicles because it takes more time for an automaker to pay off development costs and earn a profit. But we’re guessing Bentley’s 6.75-liter V8 engine has been turning a profit for a long time. After 61 years the last V8, dubbed L-Series, rolled down the assembly line yesterday. That engine will go into a Mulsanne 6.75 Edition by Mulliner, which also marks the close of Mulsanne production. In its history, Bentley sold 36,000 L-Series V8s.

GET LUXURY FEATURES AT NON-LUXURY PRICES
Would you like to own a luxury car but your wallet is a little thin? No problem, says Consumer Reports, you can find all the features that luxury cars offer in other cars that cost a lot less. Instead of shopping for a Volvo XC90, Consumer Reports says go for a Hyundai Palisade instead and save almost eight grand. And that Mercedes CLA? Forget it. Get a loaded Mazda3 Premium and save over $15,000. Why buy an Audi A6, when a Toyota Avalon is fifteen grand cheaper? And be sure to walk right past that Lexus LS when you can drive away in a Chrysler 300 and keep an extra $58,000 in your bank account. CR is right, in many cases you’re paying a premium just to have a certain badge on a car without getting better performance, comfort or features. But what do you think? Can you get a car for a lot less money that is just as good as the expensive ones?

RIVIAN WORKING ON NATIONAL CHARGING NETWORK
Just like Tesla, EV startup Rivan is working on creating its own national charging network. And to make it a reality, Electrek reports the company hired two former Tesla employees who worked on its charging network. Called the Rivian Adventure Network, the charging stations will at first be located near off-roading stops, national parks and RV Parks, instead of urban locations. The company is aiming for the chargers to deliver up to 200kW and they’ll be able to charge two vehicles at once. The first locations are expected to open next year, just in time for the launch of Rivian’s electric pickup and SUV, which are scheduled to hit the market next year as well.

LIGHT THAT BENDS COULD TRANSFORM SAFETY & DESIGN
FLECSFORM is LED lighting from Magna Rohinni Automotive that can literally bend. We recently talked with Brian Pospy, the company’s Business Development Manager and he shared how they think this lighting could be used.

Brian Pospy, Business Development Manager, Magna Rohinni Automotive
“You could take something like fog lamps and turn them into a dual function where, yes, on a foggy night you want those to perform as fog lamps, but in other applications you could have the front of that fog lamp module actually show symbols or text to communicate with pedestrians. So, it could actually create new applications out of what were considered very mature applications like a fog lamp. So, it opens up a lot of possibilities. And then you could take that fog lamp or that front of the vehicle even into a larger scope and say the whole grille could be lit up. I’m thinking on like an electric vehicle where you no longer need the venting holes in there, you could have that as a canvas and have some type of design or the badge lit up, an OEMs brand badge. And then shift away from that and into communication with pedestrians, as we get into more autonomous-type applications. The pedestrian is not going to be looking at the driver’s eyes, communicating in autonomous, they’ll look at the front of the vehicle. So, this lends itself well to that.”

To learn more about flexible lighting, you can watch that entire interview right now on our YouTube channel.

Don’t forget to join us for Autoline After Hours this Thursday afternoon when our guest will be Ian Smith from the Southwest Research Institute, which is doing pioneering research into electric cars. Also joining us for that show is John Voelker, who reports extensively on EVs. So join me and Gary for some of the best insights into the automotive industry.

BMW WILL HAVE MANUAL TRANS IN NEW M3 & M4
And before we go, we’re pleased to report that manual transmissions are far from dead. BMW confirmed the new M3 and M4 will have a manual option. The less sporty versions of those cars no longer offer a manual because demand had fallen off. But for hard core enthusiasts who don’t give a rip how fast an automatic can shift, and who derive so much pleasure from heel-and-toe driving and matching revs, niche sports cars.are the one place where manual transmissions will live on.

And that wraps up this show. See you tomorrow.