AD #2763 – Mazda CX-30 Impressions; Volkswagen Offers to Buy Navistar; GM Confirms Hummer Revival

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

CORONAVIRUS CAUSING PRODUCTION CUTS
That coronavirus could really hurt automotive production in China this quarter. Aptiv, the supplier of high tech automotive technology, predicts that automakers will cut production by 15%, which we calculate to be about a million vehicles. As China limits travel in the country, many workers who went home for a week long national holiday may not be able to return to work soon. Most global automakers and suppliers depend heavily on the Chinese market, so this will reverberate through the entire industry.

VOLKSWAGEN OFFERS TO BUY NAVISTAR
Big news in the world of heavy trucks. Volkswagen is offering to buy out Navistar for nearly $3 billion. VW already owns part of Navistar through its truck subsidiary called Traton. Navistar builds medium and heavy duty trucks sold under the International brand. It also makes school buses, defense vehicles and engines. The stock market clearly loves VW’s offer. Navistar’s stock price shot up 53% on the news. But it’s not clear if the deal with go through. Billionaire Carl Icahn is Navistar’s largest shareholder, and it’s unclear if he and another venture capital firm, will go along with the deal.

AUTOLIV DEVELOPS AIRBAG FOR ESCOOTERS
A few years ago, electric scooters began popping up in cities across the world. Their popularity is growing because it’s a cheap, easy and convenient way to get around. However, with more usage, there’s more riders getting injured. So Autoliv developed, you guessed it, an airbag for eScooters. It just completed initial tests and found that the airbag helps reduce injuries to both the head and chest. It’s not clear if this will go to the market. Autoliv says it needs to do more tests and will continue to develop the concept.

GM CONFIRMS HUMMER REVIVAL
Well it’s official. General Motors confirmed it will revive the Hummer name as a GMC electric truck. It will crank out 1,000 horsepower, along with 11,500 lb-ft of torque and move from 0 to 60 MPH in just 3 seconds. The GMC Hummer EV will make its debut in a Super Bowl ad this Sunday and it will be unveiled at an event on May 20th. 

STROLL BUYS STAKE IN ASTON MARTIN
Canadian billionaire Lawrence Stroll is buying a significant stake in Aston Martin. Stroll will invest 182 million pounds for a 16.7% stake, which will earn him the title of executive chairman on Aston Martin’s board. As part of the agreement, Stroll will rename his Formula One team from Racing Point to Aston Martin F1 in the 2021 season. Stroll’s son Lance is one of the drivers for Racing Point, along with team mate Sergio Perez.

ASTON MAY CANCEL EV PLANS
It looks like Aston’s first move with its cash infusion may be to cancel its plans for electric cars. The Rapide E, which is almost complete, is said to be under review. And the electric Lagonda, which was supposed to debut in 2022, has been pushed back three years. Electric cars are very expensive to develop, and Aston Martin does not seem to have the financial wherewithal to do it at this time. Instead, it will do hybrids. Meanwhile, Aston will rely on its first SUV, the DBX, to greatly boost sales and bring in a lot more money.

LINCOLN DUMPS THE MKZ
We first reported in 2017 that there were no plans to replace the Lincoln MKZ after its current design cycle, so it should come as little surprise the automaker will axe the sedan this year. Its sibling, the Ford Fusion will also be going away. The MKZ was the first model to come out when Ford launched its effort to revive the Lincoln brand in 2012 and is made at the company’s plant in Hermosillo, Mexico. That facility will prepare for production of new Ford vehicles as the automaker makes the switch from sedans to trucks and utility vehicles. 

WHY U.S. TOOL & DIE INDUSTRY IS STRUGGLING
There’s a lot of talk about a U.S. manufacturing renaissance but that’s being threatened by a downturn in the tool and die industry. A recent study from Harbour Results found that 10 different tool shops closed in the U.S. in 2019, laying off 2,000 workers. But this year, 75 mold and die shops will close. So, what’s happening in the tooling industry? On Autoline This Week, Laurie Harbour, the President and CEO of Harbour Results, explained why we’re seeing all these closures. 

Laurie Harbour, President & CEO, Harbour Results
“Although tooling is absolutely critical for every part on a vehicle, there’s a lot of competition coming out of China but we’re also sort of going through a bit of an evolution in the design of an automobile. So, as we move to electrification and autonomous product, the vehicle itself is changing and the OEMs are kind of in that R&D mode and design phase right now. So some future launches have slowed with some of the uncertainty in the market and the need to go into a new type of mobility. We are seeing them do more facelifts or heavy facelifts and less all-new vehicles, at least for the time being. And so that’s slowed down some of the demand for tools. And frankly, China has become a very big threat, the plastics, tooling and stamping industry is part of their ‘China 2025’ plan. And so, as a result, they’re being very aggressive on tooling from China. So, as OEMs need to cut costs to invest in vehicles, they’re turning to China for a lot of their tooling and that’s having an impact.”

For more about the troubles facing the U.S. tool and die industry, you can watch that show right now on our website, Autoline.tv or you can find it on our YouTube channel.

VW DONATES ATLAS SUVS TO HELP WITH TECHNICIAN TRAINING
There’s a shortage of automotive technicians in the U.S. just as so many of them are reaching retirement age. So Volkswagen is trying to help fill the gap. Over the next few months, Volkswagen will donate 31 Atlas SUVs, and more importantly diagnostic equipment, to high-school shops, technical schools and career centers across the country. It’s a very good step, but the U.S. is going to need more companies doing what Volkswagen is doing. The shortage is so acute, it will take tens of thousands of new technicians every year to meet demand.

Is Mazda’s new CX-30 any good? John will be here next to share his impressions on the small crossover.

MAZDA CX-30 IMPRESSIONS
Man do I like Mazda’s, everything from the MX-5 Miata to the CX-9 crossover. I just got finished test driving the all new CX-30 and I think Mazda’s have some of the best styling in the market right now: sleek, well-proportioned and with a great stance. They drive so well. The steering is direct with solid feedback, the braking is so easy to modulate, and the throttle response is crisp. The interior is very cleanly laid out and controls are easy to find. To me, Mazda almost feels as if it’s a sub-brand to Audi. And yet sales in the U.S. were down sharply last year. I don’t know if it’s a problem with marketing or dealers, but the problem is clearly not with the cars. Having said that there are a couple of things that really annoy me. The parking brake automatically sets every time you start the car. I was always trying to back up only to have it not budge because the brake was on. Even after days of driving I kept forgetting to release the brake before driving off. You know why? Because no other car company in the world automatically sets the parking brake every time you start the engine. I don’t know why Mazda is the only one to do this. The other thing that bugs me is that there is no seek or scan on the radio. If you want to change a channel on SiriusXM, for example, you have to push down on the big rotary knob on the center console, turn the knob to the channel menu, push down on the knob again, scroll to the station you want, and push down on the knob again. Every time you choose the channel guide it automatically resets to channel 0, so you have to scroll through every station to get the one you want. Yes, you can pre-set your favorite stations, which saves some steps. But if you want to choose one station above your pre-set you have to go through the whole rigamarole I just described. Little things like the parking brake and radio channels are annoying every time you drive the car, and it would be so easy for Mazda to fix it. I don’t think that would turn the sales situation around, but it sure would make customers love their Mazda’s even more.

But that’s it for today, thanks for watching and have a great weekend.