AD #2952 – How Chevy Can Make The ‘Vette Look More Modern; VW Reveals New Golf R; October Sales Down

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

SAAR DECLINES FOR FIRST TIME IN SIX MONTHS
Car sales in the U.S. have been steadily improving since COVID lockdowns earlier in the year but for the first time in six months, the seasonally adjusted annual rate declined from the prior month. According to Wards Intelligence, the SAAR hit 16.21 million units in October, compared to 16.5 million in September. Automakers sold 1.35 million vehicles last month, which is actually slightly more than last October, but because there was one more selling day this year, sales were down 2.7% on a daily selling rate basis compared to a year ago. Part of the reason for the decline is automakers didn’t have to slap many incentives on vehicles due to low inventory. Average incentive spending was down 2.6% from a year ago according to ALG. The shift from passenger cars to pickups and SUVs continues. Passenger cars dropped 10% compared to a year ago, while light trucks posted a 4.6% increase. But October’s SAAR decline could indicate that demand has hit a ceiling and may last into next year.

BMW POST Q3 NET PROFIT
Despite falling revenues, many automakers have posted third quarter profits this year. And BMW is no exception. The German automaker sold over 675,000 vehicles in the third quarter, including Mini and Rolls-Royce, which is an 8.6% gain from a year ago. Surprisingly that is a quarterly record for the company. But despite the increase in sales, BMW’s revenue in the third quarter declined 1.4% and its EBIT dropped nearly 16%. However, its 1.8 billion euro net profit is up 17%. While it was an overall good quarter for BMW, it warns that a second COVID wave could impact its momentum.

Have we got a great Autoline After Hours coming up tomorrow. Peter Rawlinson the CEO and CTO of Lucid Motors will be joining us. And so will Derek Jenkins, the vice president of design. Do you have questions you’d like to ask them? We’re going to block out part of the show just for your questions. You can tweet them in–just look for @Autoline on Twitter–or send an email to viewermail@autoline.tv. This is going to be a great discussion. Is the EV market big enough to accommodate Lucid, or is it going to have to steal sales from Tesla? Join John & Gary for some of the best insights into what’s going on in the automotive industry.

BLACKED OUT OR BODY COLOR?
We love the new C8 Corvette. But we wondered why the designers blacked out most of the front fascia. It makes the ‘Vette look like it’s got one of those gargantuan grilles. But instead of being a huge air intake, it’s actually just a blacked-out panel. So Autoline’s Katie Gritzinger played around in Photoshop to see what the C8 would look like if that panel was painted body color. There are three versions. One with the entire front end body color. One with the outside intakes blacked out. And one with the inner and outer intakes blacked out. Each one is a subtle change, but they make the ‘Vette look more modern and definitely more aerodynamic. So maybe this is what Chevrolet will do when the Corvette eventually gets electrified. But what do you think? Blacked out, or body color? 

VOLKSWAGEN REVEALS NEW GOLF R
Speaking of sporty cars, Volkswagen revealed more about the new Golf R. Power output from the car’s turbocharged 2.0L engine increased to 315 horsepower and 310 lb-ft of torque. That gets routed through either a 6-speed manual or 7-speed dual clutch transmission. Torque vectoring all-wheel drive is standard. 0 to 60? That happens in 4.7 seconds, while top speed tops out at 155 MPH. Other performance enhancements include a retuned suspension and bigger front brakes. There’s also cosmetic enhancements too. The front bumper design is different from other Golf models with a splitter, specific air intake grilles and a blue crossbar that stretches through the headlamps. The 19-inch wheels, side skirts, mirror caps, spoiler and rear diffuser are unique to the R as well. Moving to the interior, you’re likely to notice the sport seats and a whole bunch of blue accents to signify that this is not your average Golf. No word on pricing for North America, but the new Golf R will be on sale before the year is out.

FORD ADDS NEW ADAS FEATURES
Ford is improving its advanced driver assistance system. It’s adding a feature called Blind Spot Assist to its Lane-Keeping System. It works by looking out for other vehicles approaching from behind and if the driver goes to change lanes where that other vehicle is, the system will gently nudge the steering wheel as a way of saying, hey! that might not be a good idea. It’s also launching Intersection Assist. That system uses the forward-facing camera combined with radar to detect other vehicles approaching. If the driver goes to turn and it determines the two vehicles are going to crash, the system will automatically apply the brakes. These features are making their debut on the all-new Kuga in Europe, but you can be sure it will be rolled out globally to a number of other Ford vehicles as well.

YOU SAID IT!
Lots of great feedback from yesterday’s show. A number of people wanted to add to Charlie Chesbrough’s reasoning for why average transaction prices keep climbing. Kit Gerhart says, “It seems to me, that the biggest reason transaction prices are increasing, is that people are buying big trucks, rather than mid-size and smaller cars. You can buy a decently equipped Accord or Camry for an MSRP in the mid 20s, but people are buying huge pickup trucks and various size SUVs instead.” While Ron Paris says the reason for the MSRP creep is, “… Auto manufacturers are forced to pour billions of dollars into developing electric and self-driving vehicles for which there is virtually no market. What they do have to sell is conventional ICE vehicles and in order to stay in business they are forced to keep inflating the prices of products that provide their only stream of revenue and offset their escalating costs.” I’ll also chime in. I think safety plays a role. Look at how much more complex vehicle structures are and the advanced materials required to make them, like high-strength steels. Along with what Charlie said, I think that paints a pretty good picture for why prices are increasing. And a lot of you wondered, if Citroen is going after Polestar for its logo, then why doesn’t Bugatti go after Electric Brands? That’s the EV startup from Germany that we showed yesterday and not only do they have the same initials – EB – but the logos are awfully similar too. As was pointed out, they’re more closely related than the Citroen and Polestar logos. If Citroen won its case, it would be reasonable to think Bugatti would too. Thanks and keep the feedback coming.

But that’s all for today’s show. We hope to see you again tomorrow.