AD #2333 – GM Slaps Big Discount on Escalade, Company Applies V2V to Racing, Tesla Has Too Many Robots

On today’s show… GM has good reason to aggressively protect the Cadillac Escalade… V2V communication hits the racetrack… and Tesla acknowledges it needs more humans and not robots to build its cars. All that and more coming right up on Autoline Daily.

This is Autoline Daily the show for enthusiasts of the automotive industry.

GM SLAPS BIG DISCOUNT ON ESCALADE
Sales of the Cadillac Escalade are up a strong 17% in the first quarter. But sales of its main competitor, the Lincoln Navigator, have skyrocketed 63%. That’s why Bloomberg is reporting GM is offering lessees of all 2016 Escalades, a $7,500 discount to keep them in the SUV. And while that is a big discount, GM makes enormous profits off the Escalade. Analysts estimate that the profit per vehicle is more than $20,000 and that the company makes a billion dollars in profit annually off the SUV. So it’s easy to see why GM is being so aggressive to protect those sales.

GM CUTS SHIFT AT CRUZE PLANT
And speaking of GM, the company is cutting a shift at its Lordstown, Ohio plant that builds the Chevy Cruze. This is the second time in less than a year, the company has cut a shift at the plant. The facility had been running three shifts but now it’s down to one. The move is expected to affect 1,500 workers and the company is offering them $60,000 buyouts. As we’ve reported for some time now, customers are ditching passenger cars in favor of crossovers and trucks. And the Cruze is no different. Sales fell 2% in 2017 and they’re down another 26% in the first quarter this year.

Still to come…one company is applying V2V technology to motorsports.

COMPANY APPLIES V2V TECHNOLOGY TO RACING
Connected vehicles have the potential to make driving much safer and while we’ve seen a number of solutions for road-going vehicles, an electronics company is now taking the technology to the race track. Autotalks, a leader in Vehicle-to-Everything or V2X communication chipsets, just completed a test at a racetrack in Israel that saw a number of cars equipped with its V2V technology. Drivers were alerted by a flashing set of yellow lights on the steering wheel, along with a buzzer-sound if they were approaching a dangerous situation, like a crash or a car that had unexpectedly slowed down. By showing how its technology can function in a harsh environment like a racetrack, Autotalks hopes providing drivers with an instant warning will cut down on injuries and possibly even fatalities for both professional and amateur racing.

TESLA SAYS IT HAS TOO MANY ROBOTS
Before the Model 3 went into production, Tesla CEO Elon Musk bragged how automation would help it create a competitive advantage over established automakers. But as we now know, the company is struggling to ramp up production of the Model 3. And that’s largely due to relying on so many robots. But now Elon is acknowledging the mistake and sent out a tweet that said “Excessive automation at Tesla was a mistake.” And that “Humans are underrated.” Elon also said that Tesla should be able to sustain production of 2,000 Model 3’s a week but that’s short of what it had been aiming for.

And speaking of the Tesla, you won’t want to miss this week’s Autoline After Hours. This is the show a lot of you have been waiting for because our special guest is Sandy Munro, who will be here to talk about his teardown of the Model 3. So if you have any questions, send them our way to viewermail@autoline.tv and join us for some of the best insider discussions in the auto industry.

Coming up next, a look at some of the design changes to the new Jeep Cherokee.

2019 JEEP CHEROKEE STYLING CHANGES
When the Jeep Cherokee was revived back in 2014, it featured polarizing design in the front end. But the new model has a more traditional look. On last week’s Autoline After Hours, we were joined by Rich Silbert, the Engineering Development Manager, of the new Cherokee. And he talked about the styling changes to the SUV.

(The AAH preview is only available in the video version of today’s show.)

For a deeper dive into the development of the new Jeep Cherokee, you can watch that entire show right now on our website, Autoline.tv or just look for it on our YouTube channel.

But that’s it for today, thanks for watching and please join us again tomorrow.