AD #2818 – Struggles of Re-Starting Production; Honda CR-V Impressions; Diesel Escalade a No-Charge Option

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

STRUGGLES OF PICKING PRODUCTION BACK UP
Automakers are struggling with plans to restart production. In China they’re facing parts shortages. In Europe, different countries are on different paths to recovery. In North America, they’ll have to bring production up in Mexico, Canada and the United States in a coordinated fashion. Here’s our Autoline Insight. All you need is a shortage of one critical part and you can’t start production. If it’s something simple, like a sun visor or cup holder, that’s different. Just run them down the line and let the dealer install the missing part. But if it’s critical to the operation of the vehicle, like motor mounts, you just can’t fire up the assembly line. Automakers have to coordinate the resumption of stamping plants, engine plants and transmission plants before they can start their assembly plants. They have to make sure all their suppliers resume production before the assembly plants do. They need all the parts on the line before they can push the Go button. Automakers will try to give priority to their highest profit vehicles, but parts availability is going to dictate which plants start production first.

JIM FARLEY PUTTING HIS STAMP ON FORD
Ford announced some major management changes yesterday. And they show how Chief Operating Officer Jim Farley is starting to put his stamp on how the company will move forward. The goal is to improve product and launch execution; ramping up efforts for connected cars and using big data to better serve customers; improving quality and lowering costs; and creating a dedicated commercial vehicle business unit in the U.S. and Canada. You can click on the link to this article in our show notes to see all the personnel changes, but here’s our Autoline Insight. Farley is really laying out a growth strategy for Ford. Connected cars could provide a gold mine of opportunity for data monetization. Big data analysis can uncover unseen opportunities to grow revenue and cut cost. Commercial vehicles will likely weather the coronavirus storm much better than retail vehicles, especially if the U.S. initiates a major infrastructure initiative. He still has major problems to overcome, namely Ford’s massive warranty costs and its high vehicle costs. Of course, we heard all kinds of talk over the last three years from CEO Jim Hackett on how Ford was improving its fitness. But nothing happened. Now the onus is on Jim Farley to deliver the goods.

PONY.AI WILL DELIVER GOODS WITH AV FLEET INSTEAD OF PEOPLE
With people locked down in their houses, online orders have skyrocketed. So, self-driving startup Pony.ai, which is backed by Toyota and Hyundai, announced it’s going to start an autonomous delivery service for residents in Irvine, California. A fleet of 10 Kona Electrics will deliver packages from local e-commerce platform Yamibuy. Last month Pony.ai suspended its people delivery service for three weeks, so this is a way to offset that.

NEW VOLKSWAGEN TIGUAN TEASER SKETCH
The Tiguan is now VW’s best-selling vehicle world wide and Autoblog got their hands on a design sketch of the refreshed model. Let’s go over what’s new. The thin grille remains, but an accent around its edges flows into the headlights, which aren’t as boxy and have a little tail that extends into the fender. The opening on the lower fascia is larger than the outgoing model and the air curtain vents have been re-shaped. Since the Tiguan is built on VW’s MQB platform, it will receive many of the same updates as the 8th-gen Golf, including interior technology and powertrain options. The new Tiguan is scheduled to go in 2021.

BENEFITS OF MORE DIVERSITY IN THE AUTO INDUSTRY
The auto industry has made good progress on becoming more diverse in its executive workforce. But it’s still falling short of where it needs to be. On Autoline This Week, the panel discussed the benefits of pushing for more diversity.

Michelle Sourie Robinson, CEO, MI Minority Development
“But when you look at the data, McKinsey did a study and I guess the latest data is from 2017. But they literally showed, looking at a thousand companies, that if you look at those companies that have a diverse C-Suite. Literally for women, the earnings before interest and taxes, increased in those companies 21%, for ethnic minorities being integrated into the company, 33%. So, the data’s there, this isn’t just a feel good conversation, everyone gets to thrive and communities get to build and economies are stronger because the corporations and the companies that serve them are stronger when we’re more diverse and inclusive.”

Cheryl Thompson, Founder & CEO, CADIA
“That’s right and the investor community is starting to notice it. You saw Goldman Sachs came out with something, there’s something in their 2019 sustainability report about these are the guidelines we want to see more diversity on boards and in C-Suites. Goldman Sachs said ‘No more IPOs with boards with all bros.’ And I just read something this morning about Blackrock, same thing. So, it’s being really looked at by the investor community. And really if you look at the way the population is going I think that it’s this year that 50.2% of the population under the age of 18 is going to come from a minority race or ethnic group. So, we’re really going to be pushed into this ready or not.”

You can watch that entire show right now on our website or on our YouTube channel.

FORD WON’T MAKE NEW FOCUS RS
The list of cool cars that are getting the axe due to stricter emission standards just grew by one. Ford will not have a new version of the high-performance Focus RS, anywhere in the world. Ford had tried to pair the old engine with 48-volt technology to bring down emissions but it still wasn’t enough. Add in Ford’s financial problems and global sales falling off a cliff due to coronavirus, and it was the nail in the coffin for the RS. And so we bow our head in a moment silence for losing one of the greats.

HONDA CR-V IMPRESSIONS
I’ve had a Honda CR-V to test drive this week, which is the best-selling vehicle in Honda’s lineup. In the U.S. it easily outsells both the Accord and Civic by over 100,000 units a year. The CR-V hits the sweet spot in the market, which Wards classifies as fitting in the Middle CUV segment. The Touring model I drove comes with all-wheel drive and is powered by a 1.5 liter turbo four rated at 190 horsepower. It’s mated to a CVT, or continuously variable transmission, which drives well enough that the average CR-V buyer will not notice it’s a CVT. More perceptive drivers will notice that it’s not as crisp as a stepped gear transmission. The total package is rated by the EPA at 29 miles to the gallon. Like all Honda’s the CR-V imparts a sporting feel, with relatively quick steering and firm suspension, and a good, balanced feeling while cornering. This one is priced at nearly $36,000 including a destination charge of over $1,000. But that gets you almost every conceivable option and all the latest safety equipment, and NHTSA gives it its highest 5-star safety rating. So if you’re looking for a safe, all-wheel drive middle segment crossover, with a solid reputation, the CR-V ought to be on your shopping list.

#TBT: BIAGINI PASSO
As part of Throw Back Thursday, Volkswagen is detailing a Golf variant most of us have never heard of before. The story starts in the early 90’s when VW offered a lifted, all-wheel drive version of the Golf, called the Golf Country. Well, one small Italian company must have thought that car didn’t let in enough fresh air or sunlight because they took the chassis of a Golf Country, blended it with the body of a Mark 1 Golf Cabriolet and sold them as the Biagini Passo. The cars also feature headlights and taillights from other manufacturers, raised ride height and a front brush bar. Some estimate sales of less than 100, some say around 300, but what’s for sure is that most ended up in junk yard due to lack of rustproofing.

DIESEL ESCALADE A NO-CHARGE OPTION
Cadillac announced pricing for the new Escalade. It ranges from $77,500 to just over $101,000, including destination charges. It comes standard with a 6.2L V8 gasoline engine but what caught our eye is that the optional 3.0L inline six-cylinder diesel will be a no cost option. That’s right, Cadillac is essentially offering it for free. The engine cranks out 277 horsepower and 460 lb.-ft. of torque but EPA numbers haven’t been revealed. The Escalade is scheduled to launch this summer but that could be delayed due to the coronavirus. It will be interesting to watch how many customers opt for the diesel, since many buyers shy away from diesels due to the extra cost.

HAPPY 56TH BIRTHDAY FORD MUSTANG
And before we sign off, we have to wish the Ford Mustang a Happy Birthday! It was 56 years ago today that Ford officially let the Mustang out of the barn. The pony car is still popular to this day and is bringing in more fans from around the world. Last year, over 102,000 Mustangs were sold globally, making it the top selling sports car in the world, which is the fifth consecutive year it has held that title.

But that’s it for today, thanks for watching, have a great weekend and we’ll see you again on Monday.