AD #2647 – Mustang GT500 Powertrain Details, 2020 Nissan Versa Impressions, Motorcycles Enjoy High Profit Margins

This is Autoline Daily reporting on the global automotive industry.

RENAULT IN TALKS TO REDUCE NISSAN STAKE
Back in June, merger talks between FCA and Renault collapsed but the possible alliance isn’t dead yet. According to a report from the Wall Street Journal, Nissan and Renault are trying to work on a deal to reduce the French automaker’s 43.4% stake in Nissan, to revive merger talks with FCA. The deal needs approval from the French government which owns 15% of Renault. The discussions started soon after FCA yanked the proposal off the table in June and a memorandum of understanding on the restructuring could be announced as soon as September. 

MUSTANG GT500 POWERTRAIN DETAILS
Last week we teased we’d have some information on the new Mustang GT500 and let’s start with what most people want to know. It makes 760-horsepower and 625 lb-ft of torque. The hand-built 5.2L V8 is based on the GT350 engine, it has the same bore and stroke, but Ford touched just about everything. The heads have been C&C ported, it has higher tension valve springs, the valve covers are aluminum, not plastic and the head bolts are longer. It needs those longer bolts, in part, because the in-cylinder pressure is much higher than the GT350, over 1800 psi vs about 1150 psi. The head gaskets also required an extra active layer to improve sealing. Compression ratio is 9.5:1. But of course the biggest difference between the two engines is the 2.65-liter supercharger from Eaton that sits on top of the GT500. Ford picked the reverse flow supercharger with a air-to-water intercooler mounted on top because it was able to shove it down in the V of the engine, which allowed it to keep the hood height lower. The supercharger makes 12 psi. As you can bet, cooling, both inside and out of the engine is very important. With the ability to hit 1.5 Gs in corners the 11-quart oil pan features active baffles to keep the oil below the pickup tube. The openings in the front fascia are 50% larger than GT350 and it features a total of 7 coolers or heat exchangers. The car actually has enough cooling to support 800-horsepower. But all the power from the engine passes through a 7-speed wet DCT from Tremec. There’s 5 driving modes to help the driver get the most out of the car depending on the situation. In Sport Mode, the shifts are faster than the blink of an eye at 80 milliseconds, but in Drag Mode they’re actually slower to get the maximum power to the rear wheels. Ford has only given a 0-60 time of in the mid 3 seconds, but did say the car will do 0-100-0 in 10.6-seconds. The GT500 will be on sale this fall with an all-in starting price of just under $74,000.

MOTORCYCLES ENJOY HIGH PROFIT MARGINS
Only three major car companies make motorcycles. BMW, Honda and Audi, which owns Ducati. And while motorcycles are a relatively small part of their business, they enjoy the highest profit margins in those companies. BMW’s car operations now only make a 3% profit margin. But its motorcycle operations make over 14%. Honda cars have a 4% margin, but its motorcycles are at 13%. And while Audi makes 8% on its cars, it makes 10% on its motorcycles. Who knew that bikes could be so profitable?

WEEKEND RACING RESULTS
In racing news over the weekend, Lewis Hamilton won the Formula 1 Hungarian Grand Prix in his Mercedes. Max Verstappen actually lead most of the race from pole position in his Red Bull Honda but Hamilton passed him with four laps left in the race. In NASCAR, Chase Elliot won in his Chevy at the road race at Watkins Glen. The IMSA race at Road America turned out to be a drag race to the end in the DPi category. Mazda Team Joest edged out Acura Team Penske by just 0.2-second. Ford Chip Ganassi Racing took the victory in the GTLM class.

INDYCAR TO START USING HYBRIDS IN 2022
And speaking of racing, starting in 2022 Indy cars will use 2.4 liter V6 engines with 800 horsepower, 50 more than the 2.2 liter engines used today. And they are going to be hybrids. That means they’ll have an electric motor that will add another 50 horsepower. All together drivers will have 900 horses to tap into. It also means that if they spin out and stall the engine, they’ll be able to start it with the hybrid system, and not have to rely on pit crews or track personnel to get it started. Since automakers need to electrify their production engines, Indy car and other racing series have to keep up to date. Automakers want to race the kind of technology that they have in their showrooms, and that means hybrids.

2020 NISSAN VERSA IMPRESSIONS
Despite the trend in the industry to move away from sedans and replace them with SUVs, Nissan believes there are still plenty of customers who want sedans.  Here’s Autoline’s Jack Hallauer with more…

While many OEMS are abandoning sedans, Nissan is coming on strong with an entry model.  The 2020 Nissan Versa was designed specifically to appeal to those customers. Nissan’s plan for the 2020 Versa aims at folks wanting a car to be nothing more than a way to get from point A to B safely.

Karen Long SOT
Chief Marketing Manager, Nissan Versa

The new Versa is a rather unassuming car. It drives exactly how you would expect a sub-compact with a 122 HP naturally aspirated 4 cylinder would… a little slow to accelerate onto the freeway, but you get what you pay for. The 1.6L engine gets an EPA estimated 35 combined MPG. It’s not sporty, but keep in mind Nissan’s target market for this model. The 2020 Versa has been redesigned on the inside and out. It features a 7” touchscreen with Apple CarPlay and Android Auto, front and rear automatic braking, and best in class legroom in all three trim levels. The exterior styling is more modern and matches the other sedans in Nissan’s line up. The 2020 Versa comes in three trim levels: S, SV, and SR. The S starts at $14k for a 5-speed manual and $16k for a CVT. The SV starts at $17,640 and the SR around $18k. Both the SV and SR can only be optioned with Nissan’s new Xtronic CVT. You’ll have to add the destination price too, that will run you an extra $895.
 
Jose Romo SOT
Engineer, Nissan Versa

While the 2020 Versa is not a very exciting car, it’s certainly a good option for anyone looking for an inexpensive vehicle. It’s full of safety options, has decent cargo space and can get over 30 miles per gallon…. all for under $20,000 on any trim level. For Autoline Daily, I’m Jack Hallauer.

Thanks for that report.  And parents out there, if you are looking for your teen’s first vehicle, you might want to take a look at the Versa.

But that wraps up today’s show, thanks for watching and we’ll see you again tomorrow.