AD #2396 – 2019 Audi A8 Pricing, Dodge Reveals New Cars for Drag Strip, Continental Splits into Three Units

On today’s show…Rolls-Royce develops microscopic robots to inspect jet engines…Dodge lets you buy 10,000 horsepower for some weekend fun…and one supplier executive sees nothing but opportunity in Trump’s tariffs. All that and more coming right up on Autoline Daily.

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

INSPECTING ENGINES WITH MINIATURE ROBOTS
We’ve shown you some wild technology in the past but this could be the most bizarre yet. Jet engine maker, Rolls-Royce Holdings, which is no longer affiliated with the car company, is developing miniature robots that help with engine repair. Called SWARM robots, they’re about 10 millimeters in diameter and are deposited into the engine by a “snake” robot. They’re equipped with small cameras that provide live video feedback, to inspect hard to reach areas of the engine. This allows an engine to be inspected without having to remove it from the aircraft, which saves both time and money. The University of Nottingham and Harvard University are also working on the project.

DODGE REVEALS NEW CARS FOR DRAG STRIP
Dodge has a couple of new cars for the drag strip. It just debuted this new NHRA Funny Car, which gets styling inspiration from the Charger Hellcat. The 10,000+ horsepower dragster will make its race debut today and run through the rest of the weekend at the Bandimere Speedway near Denver. It also came out with a new version of the Challenger, called the Skat Pack 1320. Named for the quarter-mile distance, the car comes with a number of features first seen on the Demon, like a Trans Brake, Torque Reserve, drag radials, Line Lock, Launch Assist and much more. As Steve Beahm, Head of Passenger Car Brands says this car is for, “the bracket racer who wants to drive to the track, suit up, go fast and go home with a big smile and maybe a trophy in the trunk with minimal prep and upkeep.”

2019 AUDI A8 PRICING
We have some new details to report on the 2019 Audi A8 pricing. The flagship sedan will start out at $84,795 with destination charges. The A8 will, at first, be only available with a turbocharged V6 and by the summer of 2019, a V8 will be available. Options like a hands-on adaptive cruise control system, smart suspension that can raise and lower wheels in anticipation of road imperfections, and the “air quality package” can greatly raise the price of the vehicle. So, if you want to be totally insulated from the outside world in a perfume-scented oasis, you’re going to have to cough up quite a bit more than just $85,000.

Still to come…the giant German supplier Continental is going to chop itself into three different parts.

FCA WILL SPIN OFF MAGNETI MARELLI
There’s a lot of action in the supplier industry today. Reuters reports that FCA is finally going to spin off Magneti Marelli, its in-house parts company. FCA originally wanted to sell it, but couldn’t find anyone who would pay what it’s worth. Magneti is a $10 billion corporation with 43,000 employees in 19 countries. Even though FCA will not make any money from a spin-off, it will no longer have to invest in Magneti and that will free up cash.

CONTINENTAL SPLITS INTO THREE UNITS
Meanwhile Continental, the giant German supplier is splitting up into three business units. One is called Powertrain for now, and will get spun off and do an IPO early next year under a new name. Continental’s parts operations including Chassis, Safety and Interior will be combined into a business unit called Continental Automotive. Then it will get split into two other business units called “Autonomous Driving Technologies” and “Vehicle Networking Technologies.” And Conti’s tire and rubber business will form a third independent unit called Continental Rubber. We’re starting to see a number of suppliers doing similar things, that is, spin off their business related to the internal combustion engine, and jump both feet into autonomy and connectivity.

MITSUBISHI CREATES NEW DEALERSHIP DESIGN
Mitsubishi is doing really well in the U.S. market. So far this year it’s sold more than 67,000 vehicles an increase of over 23% compared to last year. And to give itself a fresh look, Mitsubishi just announced it will roll out a new design for its global dealer network. Taking effect later this year, the update is its first in 16 years and will feature black, white and gray color schemes with red lines as an accent.

It seems like the entire auto industry is dead set against President Trump’s import tariffs on cars and components. But one supplier executive sees nothing but opportunity. And we’ll tell you about that, right after this.

TRUMP’S TARIFFS AN OPPORTUNITY FOR SHILOH
Automakers and suppliers have warned that the Trump Administration’s trade war could hurt their business. But on Autoline This Week, Ramzi Hermiz, the CEO of a supplier called Shiloh Industries, says he sees the tariffs as an opportunity for his company.

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

For more about Shiloh Industries, you can watch that entire discussion right now on our website, or you can find it on our YouTube channel.

But that’s it for today, thanks for watching and we’ll see you again on Monday.