Trade News – Page 565

Downtime lingers for some Stellantis plants

DETROIT — Downtime will continue in June for several Stellantis factories due to the global chip shortage, but the Warren Truck Assembly Plant in Michigan is back online this week after being idled since late March, the automaker said.

The Warren factory returns ahead of the planned June 7 production launch for the upscale Wagoneer SUV, according to AutoForecast Solutions. It's unclear if production for the higher-priced Grand Wagoneer will begin at the same time.

The Warren site also produces the Ram 1500 Classic pickup.

The Wagoneer, with a starting price of $59,995 for the Series I, will compete in what Jeep calls the heart of the large SUV market. The Grand Wagoneer, opening at $88,995, will reach higher into the luxury market and square off with models such as the Lincoln Navigator and Cadillac Escalade. A fully loaded Grand Wagoneer will cross $111,000.

Detroit's Jefferson North Assembly Plant, which builds the Jeep Grand Cherokee and Dodg…

2022 VW Taos: A Golf in a crossover wrapper

Volkswagen, like other automakers, is doubling down on small crossovers with the 2022 Taos, a complement to the Tiguan. The Taos is powered by a 1.5-liter turbocharged inline-four engine — the same as in the Jetta sedan — that produces 158 hp and 184 pound-feet of torque. It is paired with an eight-speed automatic transmission in front-wheel-drive versions or a seven-speed automatic when equipped with available all-wheel drive. Taos pricing starts at $24,190, including shipping — at least $2,500 cheaper than the 2022 Tiguan. We've collected some early reviews of the Taos from the automotive press.

"The Taos' exterior is a tidy balance of the current Tiguan mixed with the more rounded styling of the ID.4 electric crossover. The fascia adopts squarish headlights and Volkswagen's latest grille, which high-end models, like our all-wheel-drive SEL tester, highlight with an LED strip. The back is attractive, but simple, drawing heavier inspiration from the Ti…

How EV designers are reimagining classic grilles

When BMW unveiled its next generation of electric vehicles — the i4 and the iX SUV — in March, their faces generated at least as much chatter as their electric guts. There on the front of both was BMW’s design hallmark: two kidney-shaped grilles.

But these were far bigger than the kidneys on the automaker’s gas-burning models and seemingly turned upright, with a glossy black lattice in place of the trademark vertical bars. They seemed like an anachronism. With no engine sitting behind them, and no radiator pulling in air, why bother?

“The kidney is not just an air-cooling system,” explains BMW design lead Domagoj Dukec. “It’s the strongest differentiator between us and our competitors.”

BMW is not alone. As legacy automakers move to electric powertrains, they’re re-inventing the grille in ways both familiar and strange. GMC’s new Hummer EV, set to begin production in the fall, features a reinterpretation of the SUV’s famous seven-slot grille. Two decade…

GPB sold many Prime dealerships for a loss

The holding company that owns the majority of Prime Automotive Group's assets reaped more than $57 million from the sale of five Prime dealerships and related real estate this year, new public financial documents show.

But some previous dealership divestitures by GPB Automotive Portfolio limited partnership, the holding company, during the past few years have been money-losers.

GPB Capital Holdings, the partnership's general partner and majority owner of Prime Automotive, one of the largest dealership groups in the country, this month filed three years of overdue audited financial statements for GPB Automotive Portfolio with the U.S. Securities and Exchange Commission as part of a required registration statement.

The partnership includes thousands of investors who raised $682.9 million, the regulatory filing shows. GPB used money raised from the investors to buy dealerships. Investors were promised 8 percent annual returns, but distributions stopped in …

Push for tax credits comes off arrogant

TO THE EDITOR:

I couldn't help but note the arrogance in automaker comments in the May 10 edition.

In Hannah Lutz's "GM seeks to restore EV tax credit," both CEO Mary Barra and Steve Carlisle, president of GM North America, seem to be begging to have taxpayers provide the incentives necessary to move electric vehicles out of showrooms; to achieve a "level playing field," in Carlisle's words. GM — Government Motors, indeed.

Given the pricing structure necessary to (partially) cover the costs of building EVs, these high-priced cars are finding early adopter homes while the mass market generally ignores them. With GMC EVs slated to roll out starting late this year, with six-figure retail prices, this formula seems flawed.

The point is really driven home in Larry P. Vellequette's "What's standing between VW's ID4 and profits? It's the battery."

CarLab's Eric Noble is quoted as saying, "VW shareholders, or German taxpayers, had better be prepare…

How will EPA answer California?

With the EPA expected to propose in July fuel-efficiency rules that are likely tougher than the Trump administration's standards, automakers could have the opportunity once again to unite behind a single national program that includes California.

After a handful of automakers — Ford Motor Co., BMW, Honda, Volkswagen and Volvo — sided with the state to meet stricter vehicle emissions standards through the 2026 model year, recent actions by two federal agencies and the Biden administration's forthcoming near-term standards could put the whole country on one playing field again.

Key questions for the industry are whether the standards proposed in July will be tougher than those that the five automakers negotiated with California regulators and whether they will include requirements for zero-emission vehicles.

NHTSA and the EPA in April took the first steps toward reversing the Trump administration's 2019 decision to revoke Califor…

Highlights from the “Daily Drive,” Automotive News’ weekday podcast, May 21-27

Here are edited highlights from the latest episodes of the "Daily Drive," Automotive News' weekday podcast, May 21-27, hosted by Jason Stein and Steve Schmith.

"In many ways, subscription is just a variation of what leasing is in taking a lot of the pain points away from the consumer."--Georg Bauer, co-founder, NextCar

"To take the icons and make them electric was obviously for many a difficult challenge because there is a conception of what those products were and need to have to be something new and different."--Ted Cannis, head of North America commercial vehicles, Ford Motor Co.

"There is a bigger demand for specialty vehicles — the minivan, the larger SUVs, pickup trucks — because people are using those to travel." --Chrissy Taylor, CEO, Enterprise Holdings

"There is a lot of activity on the private side that is either going unreported or not as widely reported on a national scale. The public folks are also very aggressively looking at vario…

Lawsuit: Tesla battery plant plagued by copper thefts

A lawsuit filed by a former Tesla employee claims he was fired from an $18,000-a-month job to help keep investors and the media from learning that thieves were stealing millions of dollars worth of copper wire from its Nevada battery plant.

Lynn Thompson said in the suit that he saw huge amounts of copper being measured, cut, loaded onto pallets and hauled away. The suit said he reported the thefts on multiple occasions to senior management, including CEO Elon Musk, and contractor ONQ Global starting in April 2018.

In June 2018, Thompson said he witnessed copper being loaded onto a truck and contacted Tesla security, who called police. Several days later, management told Thompson that he wasn't allowed back inside the Gigafactory, the complaint said.

"Since this time, Mr. Thompson has learned that Tesla and Musk pressured ONQ GLOBAL to stop allowing him on the work site and subsequently end his work at Tesla because of the outside…

Eaton tackles an old-school problem

As the industry revels in new ideas to support vehicle electrification, power management supplier Eaton Corp. has focused its most recent innovation on gasoline-powered vehicles.

Eaton is introducing a new generation of hollow-head valves intended to improve fuel economy, reduce emissions and increase performance, primarily in internal combustion engines. The technology can also support hybrid vehicles.

The gains of the sodium-filled valve come largely from its new design.

By welding together two separate sections of the valve's head portion, Eaton has achieved more flexibility in the sodium cavity design. This increases volume and creates better sodium flow compared with other hollow valves, said Pawel Wolski, valvetrain business unit director for Eaton's Vehicle Group.

The resulting valves are able to cool down the combustion face and lower the chamber temperature, which increases the spark advance and air-to-fue…

EV compromises get compounded in the real world

Ford's flashy introduction of its F-150 Lightning and the events surrounding it displayed a mastery of showmanship, ginning up excitement for the first all-electric edition of the nation's top-selling model line.

From President Joe Biden's glowing three-word review — "That sucker's quick!" — to the carnival-like atmosphere of the automaker's nighttime reveal at its headquarters, the F-150 Lightning got a huge jolt of attention right out of the gate. That was appropriate, given the King Ranch-size expectations that the Lightning will carry both for Ford and for electric vehicles in general when the battery-powered pickup arrives in showrooms. It's with this in mind that caution is warranted by automotive marketers as they hype the capabilities of their new EVs.

Unlike most electric models, the F-150 Lightning will be expected to do much more than just ferry passengers and the detritus of everyday living. Because it wears the F-150 badge, buyers will expect the …

Farley turns spotlight on commercial sales

DETROIT — Ford Motor Co.'s segment-leading commercial vans and trucks provide steady profits year in and year out, but they get little of the attention or publicity that its higher-profile retail business generates.

That's about to change.

The automaker's commercial offerings will take a starring role under CEO Jim Farley and the "Ford+" growth plan he laid out last week. Ford is separating the part of its business aimed at commercial customers into a standalone unit called Ford Pro, and it expects to nearly double the revenue it generates to $45 billion by 2025.

The company hopes Ford Pro will help it boost recurring revenue from data-focused subscription services, reduce ownership costs for fleet operators and grow its commanding 43 percent share of the commercial van and truck market.

Farley called the new entity "one of the most important strategic initiatives at Ford in many, many years." Wall Street appears to agre…

Intersection quiz: Who said what?

*/ Intersection quiz: Who said what?

It’s the end of the school year. Time for the first "Intersection" exam. Match the automaker leader with his quote. Scroll down to the bottom of this newsletter for the answers. No cheating!

1. Product “is the foundational landscape piece. It’s what you build the house on.”

2. “We have a very strong dealer network – this is our strength.”

3. The goal is to “put more connected fleets on the road than any of our competitors.”

4. “I wouldn’t want anybody to think that we’re turning our back on ICE during the transition.”

5. “We do what we can do, and we do not do what we cannot control.”

A. Toyota’s Ted Ogawa

B. Nissan’s Michael Colleran

C. Ford’s Jim Farley

D. Mercedes-Benz’s Dimitris Psillakis

E. GM’s Steve Carlisle

You’ll find stories or Q&As with all five of these quotes in Monday’s issue.