AD #2735 – Chevy Introduces New Tahoe & Suburban, Nissan Sentra Updates, Honda Plans Quality Reforms

This is Autoline Daily reporting on all aspects of the global automotive industry.

TESLA TO BUILD 500K VEHICLES PER YEAR IN GERMANY
Tesla is going to build a lot of cars in Germany. According to the German newspaper Bild, the company will produce up to 500,000 Model Y’s and Model 3’s annually at its plant near Berlin. Tesla is investing 4 billion euros in the plant and will kick off construction next year, and the site will also include testing facilities. Earlier this year, Elon Musk said the company hopes to have its German gigafactory operational by the end of 2021. Once Tesla’s plants in Shanghai and Berlin are up and running, along with its plant in California, the company will have the capacity to make over a million vehicles a year, which is a pretty formidable number. 

PORSCHE RECEIVES 30,000 EUROPEAN TAYCAN ORDERS
And speaking of Germany and electric cars, German newspaper Handelsblatt reports that Porsche has received 30,000 down payments from customers in Europe for its all-electric Taycan sports car. Customers plunked down 2,500 euros to pre-order the vehicle and 10,000 are firm orders. Porsche plans to start shipping the Taycan to the U.S. this month and other markets after that and it expects to deliver around 20,000 Taycan’s in 2020.

HOW COLOR INFLUENCES COMFORT
We’ve talked in the past about how color could be used to alter passenger’s perceived comfort inside a car and Ford is exploring how matching the right color to different driving situations could extend the range of electric vehicles. It created a minibus concept where passengers were subjected to a simulated winter’s day and summer’s day, along with changes in the ambient lighting and were asked to rate their comfort level. Ford found that red lighting reduced power usage of the HVAC system by 3.3% for cooling and blue lighting reduced power for heating by 2.5%. The minibus concept also has a number of other energy optimizing technologies, like using waste heat from vehicle components, outside air and cabin air, to extend vehicle range by up to 20%. Ford is planning road trials with the concept later this year.

Be sure to join us tomorrow for a deep dive into the all-new C8 Corvette. Tadge Juechter, the executive chief engineer will be on the show to answer all of our questions, and yours too. If you’ve got a question about the first mid-engine ‘Vette, send it to viewermail@autoline.tv, or tweet it to us. Then join John and Gary and Greg Migliore from Autoblog for some of the best gearhead insights in the business. That’s tomorrow at 3 pm eastern time on our website and YouTube channel. 

CHEVY INTRODUCES NEW TAHOE & SUBURBAN
General Motors dominates the full-size SUV segment in the U.S. market. But when Ford redesigned the Expedition and Lincoln Navigator and started stealing market share, you just knew GM had to come out with its guns ablazing. Yesterday, it unveiled the all-new Chevrolet Tahoe and Suburban. While they’re based on the Silverado pickup, they don’t reuse nearly as many parts and components are you might think. Powertrain choices include the all-new 3.0L Duramax turbo-diesel engine. The updated 5.3 and 6.2-liter V-8 engines get Dynamic Fuel Management, which should provide noticeably better fuel efficiency, though no numbers were released. All engines come with a 10-speed automatic transmission. With standard Magnaride dampers and an optional air suspension, they ride noticeably better than before. And in a back-to-back comparison with the Ford Expedition at GM’s Milford proving grounds, the Tahoe had noticeably less head toss and jostling over bumpy roads. Thanks to a longer wheelbase and overall length, they offer significantly more interior room and cargo space; 66% more cargo room in the Tahoe, 19% more in the Suburban. GM added an independent rear suspension which lowered the load floor by more than 5 inches, and that accounts for a significant amount of the added cargo space. Inside, they present a much cleaner and warmer look, with a 10-inch screen dominating the middle of the instrument panel. The trucks also get GM’s all-new electronic architecture, which is also going into the C8 Corvette. It will allow GM to provide over-the-air updates on dozens of systems. There is a lot more information about these SUVs that we’ll report on, but you can click on the headline in today’s transcript or look for the link in the description box below to get all the information that’s been officially released.

IS GMC A TRUCK OR LUXURY BRAND?
GM didn’t release anything about the new Cadillac Escalade or GMC Yukon, which are built in the same plant as the Tahoe and Suburban. That will come at a later date. Speaking of GMC, it has hit paydirt with its two sub-brands. You probably heard of Denali, an expensive trim level that GMC offers on all its models, and accounts for 30% of its sales. In fact, on the Yukon, the Denali trim level accounts for 56% of sales. But have you heard of AT4? To attract younger, upscale buyers, GMC introduced the sub-brand AT4, which stands for all-terrain four-wheel drive. Even though it’s relatively new and not yet available on all models, AT4 accounts for 15% of sales. Get this, thanks to those sub-brands, GMC now has the second highest transaction prices in the market, second only to Mercedes-Benz. And that kind of begs the question: is GMC a truck brand, or is it really a luxury brand?

GM SUV PRODUCTION RUNNING ALL OUT
Obviously, GM wants to make up for the production it lost due to the UAW strike. So it’s running max overtime with its trucks and SUVs. And it’s concentrating on making as many of the most expensive ones it can. GM reportedly lost $3 billion due to the strike, so by making as many of its more profitable models as possible, it hopes to make up for as much of that loss as it can.

NISSAN SENTRA UPDATES
It’s a good time to be in the market for a sedan. With several automakers dropping out of that segment, the ones that stayed are pouring more resources into their new models to stay competitive. Just look at the styling of the all-new Nissan Sentra. At a recent event we experienced first-hand how much more expressive this new car is than any Sentra before. Its large V-motion grille and body-color kick-up at the rear pillar, tie the styling to other Nissan sedans. But also notice how the character lines down the sides of the car squeezes the middle section together, almost like you could grab it like a dumbbell. We also learned from the Sentra’s designers that the section on the front fender, below the headlight, was inspired by fighter jets. But it’s not just the styling that makes the all-new Sentra more competitive. Its new platform provides more space and independent rear suspension, a new, more powerful 2.0L naturally aspirated engine mated to its latest CVT comes standard and it has a pretty impressive host of driver assistance features. The embargo for driving impressions and price lifts next week, so we’ll have more to say about the car then. And it goes on sale at the end of January.

NISSAN TO OFFER EXTENDED TEST DRIVES
Taking a vehicle for a test drive before you buy it, is always a good idea. But most test drives are fairly short, so it can be hard to really get to know the vehicle. That’s why Nissan has partnered with the car sharing service, Turo, to give customers the opportunity for extended test drives. The pilot program is available in Northern New Jersey, Salt Lake City and Los Angeles. To test a Nissan, you book available vehicles on Turo’s website, which can be scheduled for a few hours, a day or a weekend. And eligible customers who participate will receive $300 towards the purchase of a new or a certified pre-owned Nissan. The company says the service will help it better understand how car sharing services can influence car purchases.

HONDA PLANS QUALITY REFORMS
Over the last several years, Honda has been hit by a number of recalls and quality issues. That’s why CEO Takahiro Hachigo is expected to announce a number of reforms early next year. Reuters reports some of the changes include integrating Honda’s standalone R&D division with Honda Motor, to allow its engineers to work more closely with its purchasing, manufacturing and quality assurance departments. Honda also says it has too many regional models and needs to cut the number of derivative vehicles in its lineup. It also wants suppliers to use more common parts as well. Because of the quality issues, Honda’s operating margin is at 2 to 3% and it needs to improve that, if it wants to keep up with its competition in the future.

But that’s it for today, thanks for watching and we’ll see you back here again tomorrow.