AD #2940 – All-New Cadillac Escalade Is a Masterpiece; JLR Considering Lineup Cuts; Tesla Ends Return Policy

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

TESLA UPDATES MODEL 3
Tesla is in the news today. First up, it officially launched the refreshed version of the Model 3. Some of the updates for 2021 include, new wheels, a new center console, powered trunk and efficiency improvements that boosts the range for all versions of the Model 3. In fact, all models in Tesla’s lineup are getting increased range through an over-the-air software update. Tesla says the update improves the efficiency of the motors and climate control system, which boosts range.

TESLA ENDS RETURN POLICY
Tesla ended its ‘no questions asked’ 7-day return policy. If there was no damage to the vehicle and it had less than 1,000 miles, you could return the vehicle for a full refund. Electrek reports that customers will now be referred to Tesla’s service department if they want to return a vehicle. Tesla didn’t reveal why it ended the policy but no doubt it was extremely expensive.

TESLA SHIPPING MODEL 3s FROM CHINA TO EUROPE
Reuters reports that Tesla is going to start exporting Chinese-made Model 3s to Europe. That’s a curious move, and makes us wonder if it’s running into problems selling cars in China. Tesla’s gigafactory in Shanghai can make about 18,000 cars a month, but it’s only selling a little over 11,000 a month. So It will export Model 3s to 10 different countries in Europe. Here’s our Autoline Insight. Tesla will not export any Chinese made cars to the U.S. That’s because the U.S. now hits any Chinese-made car with a 27.5% import tax. Europe has a 10% import tax. 

QUALITY ISSUES COSTING HYUNDAI & KIA
Quality issues at Hyundai and Kia are costing the automakers big time. The Group said it has to pay out over $2.9 billion related to problems with its Theta II GDI engines, which resulted in the recall of nearly 1.7 million vehicles. And this is not even the first payout due to the issue. Reuters reports the total now stands at almost $5 billion. The impact of the costs will be reflected in the automaker’s third-quarter earnings.

SEAT INTRODUCES LEON PLUG-IN HYBRID
Spanish automaker, SEAT, is following the trend of converting vehicles into plug-in hybrids. This is the Leon e-Hybrid, which pairs an 85-kW electric motor and 13-kWh battery pack with the car’s gasoline engine. Together they combine for 205 horsepower and provide up to 64 kilometers or roughly 40 miles of all-electric range. With so many PHEVs entering the European market recently, the segment is up by 134% in the second quarter of this year, according to the European Automobile Manufacturers Association.

RIDERS GIVE AUTONOMOUS SHUTTLE THUMBS UP
Looks like the public is ready for AVs. The University of Michigan operated autonomous shuttles on planned routes and with a safety driver. They provided rides to 6,000 passengers and according to a new study, 86% of those surveyed said they trusted the shuttles. Interestingly, the survey also included pedestrians, bicyclists and drivers who did not ride the shuttles, and yet 66% of them said they trusted autonomous technology. But there is room for improvement. Passengers said the shuttles are slow, and are too cautious at intersections. 

VW RAISES BID FOR NAVISTAR
Back in September we reported that VW’s truck unit, Traton, had increased its bid to buy out truck maker Navistar. But Navistar rejected the $43 per share offer because it said it undervalued the company. Then last week, Wednesday, Traton said its bid would expire by Friday if it was not accepted. Well it looks like the folks at Navistar called their bluff. Traton again announced it’s increasing its deal to $44.50 per share, which translates to about $3.7 billion for the shares it doesn’t already own. Traton currently controls a nearly 17% stake in Navistar. Traton says Navistar has agreed to the new deal, pending a review.

JLR CONSIDERING CUTS TO LINEUP
Jaguar Land Rover’s new CEO, Thierry Bollore, is taking an axe to his product lineup. The Sunday Times reports that six current and planned models could be dropped, including the upcoming electric version of the Jaguar XJ. Also at risk are the XE and XF sedans and the Land Rover Discovery Sport. Under former CEO, Ralph Speth, the company expanded the lineup, in hopes to sell 1 million vehicles a year. But its sales slumped in China and the U.S./China trade war resulted in big losses and job cuts. Jaguar just does not have the means to support such a big lineup, so it’s going to get rid of models as a way to boost its profits.

ALL-NEW CADILLAC ESCALADE IS A MASTERPIECE
The all-new Cadillac Escalade made its way through the Autoline Garage last week and all we can say is that it is a masterpiece of design, engineering and manufacturing. There is so much we could talk about, but we only have time to hit the highlights so let’s start with craftsmanship. Here’s an example that really shows what we’re talking about. The front end comes to a point in the center with a crease that runs vertically down from the hood, through the grille, the Cadillac crest, the front fascia and the splitter. That’s a lot of different parts to assemble, but they match up exactly. Inside, the cabin is extremely detailed, with a dizzying combination of different parts on the doors, the instrument panel and the center console. That kind of complexity can open the door for mistakes and misalignments. Instead, it was beautifully put together. While Cadillac raves about its 36 inches of OLED screens, and there’s a lot to rave about, what really impressed us was the UX–the user interface for the infotainment system. It may be the best in the business. It was so intuitive to figure out and so easy to use that we never ran into what we call an RTFM problem–read the effing manual. And we can rave about the AKG sound system, but hopefully you’ll get a chance to hear it yourself because words don’t do it justice. Out on the road the Escalade provides amazing isolation from the road. Same goes for wind noise. The ride is impressively smooth and quiet, even when you’re going over railroad crossings. That’s thanks to an air suspension with magnetic ride control, which can even tame giant 22-inch wheels and tires. The only complaint we have is that the 6.2 liter V8 only delivered about 14 miles to the gallon. You can also select the 3-liter Duramax diesel for no extra charge, which ought to bump that up to 20 MPGs. We drove a Platinum Escalade ESV 4-wheel-drive Sport that was priced just a tick under $113,000. And that didn’t include Super Cruise which will add another $2,500. That’s a lot of money, but Cadillac knows its Escalade customers and will probably sell everyone it can make.   

But that brings us to the end of today’s show, thanks for watching.