AD #2404 – Detroit Three Fall Behind in Crossovers, Ford Ranger Makes Towing Easier, UPS Tests Electric Delivery Truck

On today’s show…GM, Ford and FCA are losing ground in the crossover segment in North America…UPS teams up with a California start-up to test electric delivery trucks…and a look at how well or how poorly some vehicles hold their value after they’re discontinued. All that and more coming right up on Autoline Daily.

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

DETROIT THREE FALL BEHIND IN CROSSOVERS
The Detroit automakers have struggled to sell passenger cars, so much so that Ford and FCA have decided to pretty much abandon that market and focus on pickups and SUVs. And a new study says the Detroit automakers will only produce 16% of North America’s passenger cars by 2023 and that’s down from 53% in 2005. But it’s not just passenger cars. The three companies are losing ground in the crossover segment as well. Bloomberg reports that analyst Alan Baum estimates, GM, Ford and FCA will only produce 35% of the crossovers in North America by 2023, which is way down from 61% in 2005. But not surprisingly, the Detroit automakers are expected to dominate the pickup and big SUV segments. Their share of North American production will be at 86% by 2023. What this shows, is GM, Ford and FCA need to do a better job of selling crossovers, which are becoming more and more popular with consumers.

DISCONTINUED VEHICLE RETENTION TRENDS
Automotive analysis firm, Black Book, released an interesting study on how well a vehicle retains its value after it’s discontinued. When the Mazda MPV and Mercury Milan left the market, they lost value faster than any of the other vehicles looked at, when compared to other vehicles in the same segments. The Ford Crown Victoria, a staple of police departments and taxi companies had a lower retention rate due to police adoption of SUVs and the rise of ride-hailing services. But quirky styling and unique capabilities tends to lead to a better than average vehicle retention rate. The body-on-frame Nissan Xterra, the military-inspired Hummer and the retro-styled Toyota FJ Cruiser, all retained value at higher rates than other vehicles in their class. The way we see it, the more interesting the car, the more likely it’s going to hold its value.

Still to come…Ford is using radar to make towing easier in the new Ranger.

HONDA CREATES CHARGING APP FOR FIT EV OWNERS
Most electric vehicle owners charge their cars when they arrive home for work, but that’s usually when the demand on the grid is highest and electricity is most expensive. That’s why Honda has created a new app for Fit EV owners that allows them to charge when demand is low and the availability of renewable energy is high. Called Honda SmartCharge, it computes the best time to charge based on the owner’s schedule, so it doesn’t impact their use of the vehicle. It’s currently only available for Apple devices for select Fit EV customers in California. But the company says it plans to expand to other areas in the near future and that it’s looking to apply it to the Clarity Electric and plug-in hybrid models as well.

FORD RANGER MAKES TOWING EASIER
Need help hauling? The new Ford Ranger is getting a blind spot monitor with trailer coverage.  Users can enter in the length of what they’re hauling, and the radar sensors will adapt accordingly. The system is standard on the XLT and Lariat models and the 2019 Ranger goes on sale early next year.

And be sure to check out our coverage of the Center for Automotive Research’s MBS conference. John is talking to the experts about new technology trends and the issues the auto industry faces. Look for those interviews on our website, Autoline.tv.

Coming up next, Tesla is going to invest big bucks for its new factory in China.

TESLA TO INVEST $5 BILLION IN CHINA FACTORY
We’ve got a number of stories related to electric vehicles today. Tesla received approval in early July to build a new factory in Shanghai, China, but at the time it did not reveal how much it was going to cost the company. Now we know. Bloomberg reports that Tesla will invest $5 billion in the new facility. The company had $2.7 billion in cash at the end of the first quarter. And it’s burning through that cash to get production of the Model 3 up to speed. So, Tesla is considering raising funds from local Chinese partners as a way to help pay for the factory. And this shift of production to China is likely to become more common the longer the country and the U.S. continue their trade dispute.

VW CONSIDERS PRODUCING ITS OWN BATTERY CELLS
Volkswagen’s CEO Herbert Diess doesn’t want to be dependent on a few Asian manufacturers for EV batteries and says the company is considering making its own battery cells. And like so many other automakers it’s eying solid-state batteries. Diess sights that advancements in ceramic materials as separators between the two halves of the battery had increased the possibility to mass produce solid-state batteries.

UPS TESTS ELECTRIC DELIVERY TRUCK
And UPS announced it has teamed up with Thor Trucks to test an electric Class 6 delivery truck in California. The vehicle features a Thor-designed and built battery that yields about 100 miles of driving range. UPS will use the electric truck as part of its fleet for 6-months and if the test goes well, UPS may purchase additional electric trucks from Thor.

But that bring us to the end of today’s report. Thank you for watching and we’ll be right back at it again tomorrow.