AD #2798 – Lucid to Sell Direct; NTSB Releases Final Reports on Fatal Tesla Crashes; Genesis G90 Impressions

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

TESLA FINALLY SHUTS DOWN
We’ve got some coronavirus updates on how it’s impacting the auto industry. Tesla finally agreed to shut down its manufacturing operations in the U.S. But that was only after the police and city officials in Fremont, California asked to meet with the company since Tesla was openly defying a county order for all non-essential businesses to close.

U.S. AUTOMOTIVE MANUFACTURING UPDATE
Subaru also announced it is stopping production next week at its plant in Indiana. But BMW tells Autoline that it will not have a status report on its plant in South Carolina until Monday. Let’s make a prediction here. BMW will end up closing its plant. As we reported yesterday, Mercedes told Autoline it will continue production at its plant in Alabama, but we’re going to make the same prediction for that facility that we did for BMW.

WHY OEMs DON’T WANT TO STOP ASSEMBLY
Here’s why automakers are so reluctant to stop their assembly lines. It costs them a fortune. Take Tesla. It makes 1,000 cars a day. The average price, mixing the S, X and 3 together, is over $50,000 per car. That means Tesla will lose $50 million a day. And imagine a company like General Motors which has 11 assembly plants, 10 engine and transmission plants and 5 stamping plants in the U.S. The losses just skyrocket.

TAP SKILLED TRADES TO MAKE VIRUS EQUIPMENT
But there’s one area where GM and Ford and maybe Tesla want to ramp up manufacturing, and that’s to make respirators for the coronavirus crisis. I love hearing this and I say It’s time to unleash the makers and get out of their way. I’ve met a lot of skilled tradespeople and techs who work in the auto industry who have the skills to make just about anything with their own hands. They’re the kind of makers who typically have the tools in their garage to tackle any project they want to. And it’s these kind of people that the auto industry and the government need to put on the case to start making respirators, ventilators and masks. All they need are the specs, the tools and the space to work on it. In an emergency like this the key is to get these people together and let them start working on it as fast as possible. They’ll figure it out. And the more they make, the better they’ll get and the faster they’ll go. And you watch, they’re the kind of people who will volunteer to do it.

LUCID TO SELL DIRECT
EV startup Lucid Motors recently shared details about its retail strategy. Just like Tesla, the company plans to sell directly to consumers. But it will build a network of retail spaces so customers can experience its vehicles first hand. The stores will have VR configurators, so customers can learn about its cars in an immersive virtual experience. It recently opened a studio in California, and plans to open 8 more studios across the country this year but who knows how that will be impacted by coronavirus. Lucid planned on unveiling its Air sedan at the NY Auto Show but it says it’s evaluating the situation now that the show is postponed.

BENTLEY’S MULLINER TAKES 9-MONTHS TO MAKE BACALAR
When you buy a Bentley you’re already buying into a pretty exclusive club, but the company’s lead designer tells Autoblog that its high-end customers wanted something even more special. That led to the Bentley Mulliner Bacalar, a two-seat roadster that’s loosely based on the Continental GT and it will only build 12 of. Its styling is inspired by the EXP 100 GT concept car and features unique touches like 5,000 year old Riverwood and a 650 horsepower 12-cylinder engine. What’s even more amazing is the car was finished in just 9-months. It was meant to debut at the Geneva auto show. And for the lucky few buyers in the U.S., the Bacalar will be imported under the Show and Display law, which allows vehicles that don’t meet federal safety regulations to be imported if they have “historical or technological significance.”

BMW TO HOLD E-RACING EVENTS
As we reported yesterday, NASCAR created an e-sports series with real drivers while its races are postponed. And BMW is doing the same and is holding several events this weekend through its SIM Racing program. It will compete in the first-ever virtual race at the Nurburgring which will feature more than 50 cars split into four classes. The race will be livestreamed at www.vln.de at 8AM eastern time. Following that race, will be the All-Star Esports Battle, with up to 60 pro racers duking it out in the virtual world. You can watch that on THE RACE YouTube channel at 3PM eastern on Saturday. And there’s also a virtual Sebring race with real drivers participating at 2:30PM eastern time on Saturday, that will be broadcast on the iRacing eSports Network on YouTube and Twitch. While this can’t replace the real thing, it’s at least something to watch.

NTSB RELEASES FINAL REPORTS ON FATAL TESLA CRASHES
The National Transportation Safety Board released its final reports for two fatal crashes involving Tesla’s Autopilot system. The first accident in California in 2018, investigators determined the driver did not perform any evasive action and was likely using a smartphone app just before the crash. The second accident in 2019 in Florida, where a Tesla collided with a semi-tractor trailer crossing the road, also was the result of driver inattention. But the NTSB was critical of Tesla for not limiting the use of Autopilot to conditions it was designed for. And it also criticized NHTSA for not coming up with safeguards to make sure drivers are properly warned if a crash is imminent.

HOW TO GET ENTHUSIAST TO SWITCH FROM GAS TO ELECTRIC
The topic on Autoline This Week is all about cracking the code on how to sell EVs. Mike Dovorany is with a company called Escalent which identified six different categories of new car buyers and it came up with ways of how to sell EVs to each segment. Here he talks about how to get young enthusiasts shopping for EVs instead of a gas-powered car.

Mike Dovorany, Escalent
“For us it’s looking at some of those motivations and really trying to go after those. So, for instance with this group, it’s talking about the performance aspects of an EV, it’s really talking about some of the issues related to range or (with) this group cost is a little bit of a factor. I mean, cost is obviously a factor with all groups. But this is one where needing to be able to address that in some ways this is the best combination out there of things that they seek. One of the things that I think of back when I was younger, this would be a buyer who might be hot for something like a BMW M3. Well now if you’re looking at a vehicle that can offer, if a BMW M3 is an $80,000 vehicle, hey look our EV for $45,000 can beat it 0 to 60, has great looks, great image. That’s an easier way to sell to this group.”

Bob Gritzinger, WardsIntelligence
“And they’re cooler under the hood.”

John McElroy, Autoline
“So, these young enthusiasts-types, they comprise what percent of sales, more or less?”

Mike Dovorany, Escalent
“So, they’re about 14% of the market.”

John McElroy
“Oh! So, big chunk?”

Mike Dovorany, Escalent
“Yeah. The first group is pretty small. The rest of the groups are relatively large in size.

You can watch the rest of that show on our website and YouTube channel to see what category you fall into. Let us know if they’re marketing the right things to you.”

4-ROTOR MERCEDES C 111 CELEBRATES 50 YEARS
The wedged-shaped supercar is not normally a form you think of when Mercedes comes to mind. But it broke its typical moulde when it introduced the C 111 experimental vehicle. The company put out a press release how the second generation of that car is celebrating the 50th anniversary of its debut at the 1970 Geneva auto show. And it’s packed full of new high-def photos as well as classics shots of the car. That second generation was highlighted by a 4-rotor Wankel engine that produced 350 horsepower. Look for the link in the transcript or description box to check it all out.

GENESIS G90 IMPRESSIONS
This past week I’ve been test driving a Genesis G90 and all I can say is, what a spectacular car. It has all the road presence of a Mercedes S-class and maybe more so. But with a starting price of about $72,000, it’s at least twenty grand cheaper than the Benz. The front end is dominated by a trapezoidal grille that looks so imposing in pictures that are shot low, but doesn’t look so quite so predominant when viewed from a higher angle, like when you’re walking by. Inside the G90 is sumptuous, with a lot of fine detail work everywhere you look throughout the cabin, from the stitching in the seats and trim work all the way through the speaker grilles. And the back seat is worthy of the finest limousines. Genesis got off to a shaky start in the US market, but now it’s starting to make up for lost time. While sales are still small, they’re growing quickly. Sales of the G90 were up 56% for January and February, though clearly the coronavirus crisis is going to slow that down. Speaking of the virus, I was kind of secretly hoping that Genesis would tell me to hold onto the car until the crisis was over. No such luck. They came and picked it up two days ago.

And with that we wrap up today’s show, thanks for watching and we hope to see you again on Monday.