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Runtime: 9:33
0:26 OPEC’s Worst Nightmare
1:35 Renault-Nissan-Mitsubishi Alliance in Trouble
2:06 German CEOs To Meet with Trump
2:59 Top 5 Global Platforms In 2025
3:53 Ford Unveils New Focus Active in Europe
4:43 Importance of Leak Detection
5:40 You Said It!
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On today’s show…oil prices look like they could come crashing down…so does the Renault-Nissan-Mitsubishi Alliance…and German auto executives are going to the White House on a begging mission. All that and more coming right up on Autoline Daily.
This is Autoline Daily the voice of the automotive industry.
OPEC’S WORST NIGHTMARE
Back in the 1970’s, right after the first oil crisis, there was a song from the band Tower of Power called “There Is Only So Much Oil In The Ground.” It’s all about how the world is going to run out of oil. Well, that was then. Today fracking has completely changed the rules of the game. Bloomberg reports that OPEC is about to go through its worst nightmare. In August, U.S. oil production hits its greatest increase in 98 years. By this time next year, U.S. oil imports will be the lowest they’ve been since 1949. Seven new pipelines in Texas are going to make it far easier to move that oil, and frackers in Texas can make a profit even if the price drops to only $30 a barrel. So we could be facing another oil glut with gasoline prices dropping just as automakers will be introducing a slew of electric cars. And that could be their worst nightmare.
RENAULT-NISSAN-MITSUBISHI ALLIANCE IN TROUBLE
Carlos Ghosn isn’t the only one in trouble after his surprising arrest earlier this week. The whole Renault-Nissan-Mitsubishi Alliance is now threatened by his ousting at Nissan. Bloomberg reports Ghosn was working to strengthen the alliance and wanted to make it permanent after he retired. But now those plans are up in the air. Also, Nissan doesn’t want the power of the alliance in one person’s hands. So it sounds like it’s going to be a struggle to keep the alliance together.
GERMAN CEOs TO MEET WITH TRUMP
The Trump Administration is inviting the CEO’s of BMW, Daimler and Volkswagen to the White House for talks after the Thanksgiving holiday. They’ll be going very humbly. President Trump is threatening to slap a 25% tariff on cars imported from Europe. That would cripple the German OEMs. We’re willing to bet they will do anything Trump asks in order to avoid those tariffs.
Still to come…in an industry that needs massive manufacturing scale, we’ll take a look at the top vehicle platforms for 2025.
TOP 5 GLOBAL PLATFORMS IN 2025
Last week, we showed you the top five global platforms in terms of production for 2018. But now let’s look at what the top 5 global platforms for 2025 will be according to AutoForecast Solutions. Number one, at about 2.8 million units, is the VSS-F B/C platform from General Motors, which is used for vehicles like the Chevrolet Sonic and Cruze. It’s followed by Volkswagen’s MQB A0 platform at around 2.7 million units. Next up is PSA, the parent company of Peugeot, Citroen and Opel, with its EMP2 platform. It’s used for compact and mid-size cars with front or four-wheel drive and a transverse engine. Hyundai’s N platform comes in at number four. And once again, VW is on the list with its MQB A1, which the Golf and Jetta are based on.
| 2025 TOP 5 GLOBAL PLATFORMS | |
|---|---|
| VSS-F B/C (GM) | 2,790,119 |
| MQB A0 (VW) | 2,687,737 |
| EMP2 (PSA) | 2,633,867 |
| N (HYUNDAI) | 2,557,298 |
| MQB A1 (VW) | 2,377,674 |
| Source: AutoForecast Solutions | |
FORD UNVEILS NEW FOCUS ACTIVE IN EUROPE
If you’d like an idea of how Ford’s car lineup will evolve, here it is. The automaker is introducing the new Focus Active 5-door and wagon models in Europe. They feature unique springs, dampers, stabilizer bars, front and rear knuckle geometries and a raised ride height of about an inch compared to the standard Focus. For more utility, the Focus Active will come with a Slippery drive mode for mud, snow and ice, as well as a Trail mode to help maintain momentum over soft surfaces. Power options in Europe include a 1.0L and 1.5L gas engine and a 1.5L and 2.0L diesel engine. All can be mated to either a 6-speed manual or 8-speed automatic transmission. The Focus Active is available right now in Europe.
IMPORTANCE OF LEAK DETECTION
Preventing leaks plays an important role in producing safe and reliable vehicles. Leak detection used to be as simple as dunking a part in water and looking for bubbles. But it’s come a long way and now usually involves filling a part with a gas and going over it with an instrument that’s calibrated to detect the gas. It’s much faster and easily repeatable process and it will play a major role with autonomous and electric vehicles. But there needs to be more education and we’ve got a video up on our YouTube channel right now outlining the importance of leak detection.
Coming up next, it’s time for You Said It!
YOU SAID IT!
And now it’s time for some of your feedback.
Lambo2015 wants to know: “Is additive manufacturing the official term for 3D printing? Or is that a specific type of 3D printing?”
Yep, additive manufacturing is the official term for 3D printing.
A bunch of you reacted to our report on that Nissan pickup truck sold in Africa that folded up like an accordion in crash tests, and got zero stars from the Euro NCAP safety rating.
WineGeek says: “I think it is a poor way for a car manufacturer to produce vehicles that they know are ‘unsafe at any speed’ to sell in less developed markets.”
But Ron Paris points out: “Of course these models do not meet the latest-greatest safety specs of wealthy industrialized nations. If they did, they would be priced out of the market!”
You both make good points. But I would point out that Africa has the highest traffic fatality rates in the world by far. And the way that Nissan pickup collapsed in that crash test suggests they’ve eliminated dozens if not hundreds of welds, and don’t use high strength steel. Africa would be better off importing used trucks with top safety ratings rather than manufacture new ones that are death traps.
Larry D. heard our take on Carlos Ghosn getting fired. I think Nissan was looking for an excuse to break up the Alliance between Renault, Nissan and Mitsubishi, because Renault really runs the show. He says: “I listened to your take on Nissan-Renault and Ghosn with interest. But if it was such a lopsided deal against Nissan’s interests, why did nobody object to it then?”
Well that’s because Nissan was on the verge of bankruptcy and really didn’t have a say in how it should be rescued. It’s like Obama’s Automotive Task Force telling GM and Chrysler they had to get rid of a bunch of brands and close down thousands of dealerships. They were in no position to argue with the people who were bailing them out.
Barry Rector Says: “Thanks so much for your take on the Carlos Ghosn story! This is why we need you to keep us up on what’s really happening. Thanks for all your insight!”
Thanks Barry. We pride ourselves on providing you with insight and analysis you’re probably not going to find anywhere else.
And a number of you also reacted to our report on the moral dilemma facing automakers about how to program autonomous cars if they have to choose between hitting one group of people or another.
NorthStead Landscaping says: “Autonomous morals are ridiculous! It should be autonomous vehicles should avoid hitting anything period. If there’s an accident it’s an accident. If a vehicle has time time to pick a pole over an old person and the pole falls down and kills five people where does it end?”
Well look, with autonomous cars we’re going to see a migration away from personal responsibility to product liability and it’s going to be up to the courts to determine who’s guilty. This is why we have courts.
And finally, IncognitoTorpedo has a different take altogether. “If the autonomous vehicle spots someone littering it should run them over on purpose.”
You know, I hate litterbugs too, but we’re not going to go that far. We just need to figure out some way to humiliate them so they never litter again.
And that wraps up today’s Autoline Daily. We’re going to be off the next two days for the Thanksgiving Holiday. So have a great Thanksgiving and we’ll see you back here on Monday.
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John McElroy is an influential thought leader in the automotive industry. He is a journalist, lecturer, commentator and entrepreneur. He created “Autoline Daily,” the first industry webcast of industry news and analysis.
