Tag Archives: Markets

GM Grows Board of Directors’ Diversity with New Whitman, Tatum

March 25, 2021 admin

Meg Whitman, a technology leader and former head of Hewlett Packard Enterprise, will join the General Motors Board of Directors.

What was already the most diverse board of directors in the automotive industry just go a little more so, General Motors Co. expanding its board, adding Meg Whitman and Mark Tatum to fill the spots.

The move grows GM’s board from 12 to 13 members. Adding Whitman, a former Republican gubernatorial candidate in California and CEO of Quibi Holdings LLC, a media startup, results in women filling seven of the posts on the board. It makes GM the only automaker where women comprise a majority of the board.

Tatum, who is of Asian and African-American heritage, is the National Basketball Association’s deputy commissioner and chief operating officer. Diversity within the company has been a priority for Chairman and CEO Mary Barra since her appointment in 2013.

Diversity is a strength

GM quickly pointed out that the diversity of the company’s newly expanded board isn’t just limited to gender or ethnic background.

Diversity has been a theme during Mary Barra’s tenure as GM’s Chairman and CEO.

The company’s 12 independent directors have senior leadership and board experience in information technology, digital commerce, retail, higher education, investment management, international affairs, defense, transportation, cybersecurity, and pharmaceuticals, among others.

“Our diverse Board of Directors is a competitive advantage for GM as we work to deliver a better, safer and more sustainable world,” said GM Chairman and CEO Mary Barra. “Mark and Meg will bring unique experiences to the Board, especially in technology, brand building and customer experience that will help us drive value for shareholders and other GM stakeholders now and into the future.”

Diversity is a focus in the company’s executive ranks as well. Barra’s overseen a significant shift of women into higher level roles at the company during her tenure. Some of those include Dhivya Suryadevara as Chief Financial Officer, the first-ever woman to hold the job, and Alicia Bolder Davis as the Head of Global Manufacturing.

Others include Ann Cathcart Chaplin, corporate secretary and deputy general counsel; Margaret Curry, vice president, Tax and chief tax officer; Julia Steyn, head of urban mobility and Maven; Kimberly Brycz as senior vice president, Global Human Resources; and Pamela Fletcher, vice president, Global Electric Vehicle Programs. Both Boler Davis and Suryadevara left the company for other opportunities in the last 18 months.

Results are showing

Mark Tatum, deputy commissioner and chief operating officer of the National Basketball Association, will join the General Motors Board of Directors.

The push to diversify, at least by gender, is beginning to get noticed. GM was the top ranked company in the U.S. on the Gender Equality Global Report & Ranking for 2021. It was No. 5 globally, with a score of 71%, up from No. 11 and a score of 68% last year. GM was the only automaker in the Top 100.

Researchers noted GM achieved gender balance at the board level (at the time the report was issued, there were six women on GM’s board). Additionally, women represent 20% of the executive team, 32.2% of senior management and 21.8% of the workforce.

“They offer a living wage and flexible work arrangements to their employees. General Motors is the only company in the U.S. and globally that publishes a mean, unadjusted gender pay gap of less than 3% in all pay bands, and they have a strategy to close the gender pay gap. General Motors also publishes all eight of Equileap’s recommended policies that promote gender equality,” the report noted.

It is compiled by Equileap, a data research firm, which researched 3,702 companies based on 19 gender equality criteria, including gender balance from the board to the workforce, as well as the pay gap and policies relating to parental leave and sexual harassment. The average score for the Top 100 companies globally was 64 percent, an increase of 2 percentage points from last year.

Other automakers making moves

Alexandra Ford English has been nominated for the Ford Motor Co. board of directors.

GM’s top domestic rival, Ford Motor Co., currently has three women on its board of directors and nominated a fourth, Alexandra Ford English, daughter of current Executive Chairman Bill Ford Jr., who is virtually assured of election to the board later this year.

Ford English, 33, recently accepted another board position that elevated her profile. She took on the role as Ford Motor Co.’s representative to the Rivian board of directors. Ford Motor owns an equity stake in the EV maker. She’s held roles in corporate strategy at companies like Tory Burch and Gap Inc. as well as the automaker, which she joined in 2017.

The company’s global workforce is 28% female and 20% of its leadership comprises women. Some of it is top officers include Joy Falotico, president, The Lincoln Motor Co.; Lisa Drake, chief operating officer, North America; Suzy Deering, chief marketing officer; Dianne Craig, president, International Markets Group; Elena Ford, chief customer experience officer; Cathy O’Callaghan, vice president, Controller; and Kiersten Robinson, chief people and employee experiences officer.

Falotico, Drake and Deering have all moved into their roles in the last 12 months with the first two moving from other jobs within the company. Deering arrived at the automaker in January from eBay, where she was global chief marketing officer. She actually took over for Falotico, who now focuses solely on running Lincoln.

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Lexus Reveals Limited-Run 2022 IS 500 F Sport Performance

March 19, 2021 admin

2022 Lexus IS 500 F Sport Performance Launch Edition - on track

The 2022 Lexus IS 500 F Sport Performance Launch Edition is a fully loaded version of the new, V-8-powered sedan.

The name is long. The order list is short. We got a first look at the new 2022 Lexus IS 500 F Sport Performance model barely a month ago. Now, the Japanese luxury brand is adding a special Limited Edition package of which just 500 will be produced.

For those who like the idea of having unique features — like the personalized number plate on the center console — the good news is that all 500 of the 2022 Lexus IS 500 F Sport Performance Launch Edition models will be earmarked “exclusively for North America.”

“Standing apart from the standard IS 500, the 2022 IS 500 Launch Edition interior builds upon Takumi craftsmanship with elevated interior materials, including sporty two-tone Black & Gray Ultrasuede trimmed front and rear seats, door accents, and center console,” Lexus said in a statement.

Other special features include silver ash wood details on the otherwise leather-wrapped steering wheel, as well as updates to the instrument cluster. Now, when you’re sedan wakes up, the version of the IS spinning on the digital display will be a Launch Edition “to further set this model apart from the standard IS 500,” Lexus explained.

Taking the green flag

The 2022 Lexus IS 500 F Sport Performance Launch Edition clocks some track time alongside a race version of the new sports sedan.

The Launch Edition made its debut Friday evening in Sebring, just hours before the start of the annual 12-hour race there. It’s an appropriate venue.

The IS has played a significant role for Lexus, helping adding a little adrenaline to its image of solid but stodgy design and performance. The first Lexus F model was an upgraded IS launched in 2008 and featured a 416-horsepower V-8.

When the prior-generation Lexus IS debuted, some fans feared the automaker was taking a step back. replacing the V-8 with a respectable but nowhere near as impressive 3.5-liter V-6 rated at 311 hp. For 2022, the IS 350 jumped to 350 hp and 311 lb-ft. A nice increase, but still nowhere near past F Sport numbers.

Lexus had a surprise in store

2022 Lexus IS 500 F Sport Performance Launch Edition - number plate

Each 2022 Lexus IS 500 F Sport Performance Launch Edition will feature a unique number plate, with only 500 of the sedans to be produced.

It turns out the brand was only holding the big news in reserve. Last month, it said it would “dial up the sports sedan formula to eleven,” with the debut of the new IS F Sport. It marked the return of the V-8, punching out a hefty 472 hp, or 122 more than the turbo-6 in the 2021 IS F Sport Performance edition.

And this is just a hint of what’s to come from the brand. Lexus last month said this is “the first model in the new Lexus F Sport Performance line.” It appears the marque is getting ready to take direct aim against the likes of Mercedes-AMG and BMW M.

The 2022 Lexus IS 500 F Sport Performance gains only 143 pounds when compared with the IS 350 F Sport. So, the boost in performance should be notable. Lexus claims the Performance model will hit 60 in 4.5 seconds, a full 1.1 seconds quicker than the IS 350.

Beyond 0-60

2022 Lexus IS 500 F Sport Performance Launch Edition - interior

The cabin of the 2022 Lexus IS 500 F Sport Performance Launch Edition features a number of unique details, also including the ash wood-finished steering wheel.

Straight line acceleration is just part part of the picture. To handle the curves, the IS 500 Performance model comes standard with the Dynamic Handling Package now available as an option on the IS 350 F Sport. That includes an adaptive suspension and Torsen limited-slip differential. The chassis also gets a new Yamaha rear performance damper.

To scrub off speed, the Performance model’s brakes are upgraded, as well, with larger 14-inch two-piece aluminum front rotors and 12.7-inch rotors in the rear.

Visually, the IS 500’s hood has been raised by nearly 2 inches and gets more distinctive character lines in Performance trim. The front bumper and fenders also have been stretched to handle the big V-8. There’s also a new, rear diffuser framing the sedan’s quad exhaust, dark chrome window trim, and a black rear lip spoiler.

The top model comes with exclusive 19-inch split-10-spoke Enkei alloy wheels that shave about 6 pounds off total vehicle weight.

2022 Lexus IS 500 F Sport Performance Launch Edition - on track rear

The 2022 Lexus IS 500 marks just the first of what will be a line-up of F-Sport Performance models.

More to come

Going forward, all Lexus Performance models will feature unique black badging to distinguish them from standard F models.

Inside, look for similar black badging on the heated leather steering wheel and door sill plates. And the gauge cluster will feature unique animation.

Like other IS models, the IS 500 Performance and Performance Launch Edition models will get a number of upgrades to the Lexus advanced driver assistance technology. Among other things, the Forward Collision Warning system now will have greater range and will be able to detect a potential head-on collision when turning left.

Lexus won’t reveal pricing until closer to the on-sale date of the Performance and Launch Edition models next autumn. The current, 2021 Lexus IS 350 F Sport starts at $42,900. Expect to see the number jump for the 2022 Lexus IS 500 F Sport, especially if you’re considering either the Performance or Launch Edition models.

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GM Inks New Deal with Innovative EV Battery Maker

March 11, 2021 admin

GM’s next-gen lithium metal batteries, the expected energy density increase may mean higher range in a similarly sized pack or comparable range in a smaller pack.

General Motors continued its charge to develop better batteries, announcing its partnership with lithium metal battery startup SolidEnergy Systems.

The company, also known as SES, is working on technology that would reduce the size of EV batteries while increasing driving range of the vehicle they’re used in. GM officials have long discussed the need to reduce battery costs, another factor in the production of electrified vehicles is weight.

Batteries are heavy and developing and using a smaller battery equates to weight savings, helping to further expand the improved range afforded by the batteries SES and GM are working to create.

Lighter, farther, cheaper

GM says its lithium metal battery with a protected anode offers the Big Three of EVs: affordability, high performance and energy density. The initial prototype batteries have already completed 150,000 simulated test miles at research and development labs at GM’s Global Technical Center in Warren, Michigan, demonstrating real-world potential, the company revealed.

GM announced a joint development agreement with lithium metal battery innovator SolidEnergy Systems.

The automaker isn’t just working with SES to bring lithium-metal batteries to fruition, but several other companies as well. However, it does have a history with SES, investing in the company six years ago through its GM Ventures arm.

This new deal is the next step in that collaboration, and as part of that progression, GM and SES plan to build a manufacturing prototyping line in Woburn, Massachusetts, for a high-capacity, pre-production battery by 2023.

Results mean EVs for all

“Affordability and range are two major barriers to mass EV adoption,” said GM President Mark Reuss.

GM’s prototype lithium metal batteries were developed at the company’s research and development labs in Warren, Michigan.

“With this next-generation Ultium chemistry, we believe we’re on the cusp of a once-in-a-generation improvement in energy density and cost. There’s even more room to improve in both categories, and we intend to innovate faster than any other company in this space.”

The goal is to incorporate these smaller, more powerful and less expensive batteries as part of the Ultium Platform that will be the basis for a slew of new EVs coming from the auto company. The first of those, the GMC Hummer hits the road this year.

GM is working to complete its $2.3 billion plant to build the Ultium batteries in partnership with South Korea’s LG Chem. The pair is setting up shop in Lordstown, Ohio. Officials recently revealed two more plants could be in the works. The first would be near GM’s plant in Spring Hill, Tennessee.

The company is investing $2 billion at that facility to prepare it to produce Cadillac’s first-ever all-electric model, the Lyriq. GM is investing $27 billion in electric and autonomous vehicles with plans to have 30 EV models available around the world by the end of 2025. The company declared it would end production of gas- and diesel-powered vehicles by 2035.

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First Look: 2022 Kia Carnival

February 23, 2021 admin

Kia is looking to shake things up in a “staid” segment with its new minivan, the 2022 Carnival.

Farewell Sedona. Kia officially unveiled the replacement for its familiar minivan today, festively dubbing it the Kia Carnival.

The decision to drop the Sedona nameplate for the 2022 model year has been rumored for many months and reflects the South Korean carmaker’s desire to use similar nameplates worldwide. It took the same approach last year, using a makeover to rename the old Optima sedan the new K5.

There’s more to the move, however. Kia is pushing the brand upmarket. And, as we have already seen with the K5 and the Telluride SUV, that quickly becomes apparent when you get a close look at the new Carnival. It not only gets a new look but plenty of features that push it well into “premium” territory,” a far cry from Kia’s familiar image.

“The Kia Carnival is here to disrupt a staid segment and proves once again what is possible when conventions are shattered,” said Sean Yoon, the president and CEO of Kia Motors North America. “With its SUV-like character, our new multi-purpose vehicle delivers a combination of premium design, intelligent packaging, and an abundance of innovation in safety and technology. For these reasons, the Carnival is the first vehicle to proudly wear our all-new Kia badge and is a bold signal of things to come.”

A more rugged, SUV-like design

Kia keeps with its push to get some global consistency with its vehicle names changing the Sedona to the Carnival.

The new look is decidedly more boxy than that of the old Kia Sedona, with a larger, more upright take on the brand’s familiar “tiger nose” grille, framed by slit-like headlamps. The hood is more horizontal, with creases intended to imply power. The roofline and side windows take on a more ute-like appearance, though the 2022 Kia Carnival retains the twin sliding doors that minivan buyers love.

A rear skid plate and a choice of 17- and 19-inch wheels add to the more aggressive look of the new people mover.

The cabin is where the new Carnival really stands out when compared to the outgoing Sedona line, with more upscale materials and details, like the chrome dash running the length of the instrument panel.

Carnival will be offered with both 7- and 8-passenger configurations, with the optional center buckets able to slide and recline. The “Slide-Flex” system in the 8-passenger model allows a variety of different configurations, and the front passenger seat can be converted into a table.

Segment-leading passenger and cargo space

The new Carnival offers plenty of room as well as all of the technological creature comforts expected in minivans these days.

Functionality remains a critical purchase consideration for MPV buyers and Kia claims the new Carnival delivers best-in-class interior space of 168.2 cubic feet, as well as segment best cargo room of as much as 145.1 cf with the second and third rows folded down.

Technology matters, as well, and the new Kia Carnival boasts twin displays, including a 12.3-inch recongfigurable gauge cluster. The basic touchscreen infotainment display measures 8 inches but upgrades to 12.3 inch with navigation. Bluetooth is built in, with both Apple CarPlay and Android Auto standard on all models. Wireless versions are available with the dual rear screen entertainment package. Wireless charging and built-in WiFi also are offered. And there are up to nine USB ports and an optional 110-volt outlet in the cabin.

There’s a rear occupant alert system using ultrasonic sensors designed to alert parents and caregivers if a child or pet remains in the second or third rows after the vehicle is shut off and doors locked. It can notify them in several ways, including sending an alert by text message.

The Passenger Talk system acts like an intercom to make it easier for occupants up front to chat with those in the rear. And a camera also lets parents keep an eye on children in back. It even uses night vision to let it work in the dark.

Plenty of safety gear

The new Carnival offers more cargo space than any of its competitors in the segment.

As one would expect of a modern minivan, the 2022 Carnival is loaded with airbags and more advanced driver assistance systems, including forward collision warning with pedestrian and bicyclist detection, and parking collisions avoidance.

Under the hood, all versions of the new Kia minivan use a 3.5-liter V-6 pushing out 290 horsepower and 262 pound-feet of torque through an eight-speed automatic. All-wheel-drive is not available. The minivan features one of the segment’s better tow ratings, at a max 3,500 pounds.

The 2022 Kia Carnival is expected to reach U.S. showrooms during the second quarter. Pricing will be released closer to then. The outgoing Kia Sedona currently starts at $30,400.

The new Carnival will be facing some tough competition, including new or recently updated offerings from the minivan segment leaders, the Chrysler Pacifica, the Honda Odyssey and the Toyota Sienna. The minivan segment has been shrinking for more than a decade but all of the key players are hoping to rebuild momentum with more rugged designs and the addition of new tech and safety features.

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Tesla, GM May Get Eligibility for Federal EV Tax Credits Again

February 12, 2021 admin

Buyers the new Tesla Model S may be eligible for a $7,000 tax credit not previously offered.

Tesla and General Motors may be considered polar opposites in many ways, but in one very big way they’re going to be almost bosom buddies: tax credits for EVs.

The market leader in the segment and the hopes-to-be-leader in the segment are soon able to once again access federal tax credits for the next 400,000 electric vehicles each automaker sells, if a new bill from Democrats makes it into law.

The Growing Renewable Energy and Efficiency Now Act (yup, GREEN) provides a new set of tax incentives aimed at renewable energy technologies, or in this case, vehicles. GM and Tesla buyers could get $7,000 tax credits for new EVs, if it passes.

Government getting involved

Chevy Bolt buyers may get to claim a federal tax credit that had been previously unavailable.

President Joe Biden is a proponent for the growth of electric vehicles, pledging to add 1 million new automotive jobs related to EVs and growing the nation’s underwhelming EV charging network by 500,000 by the end of the decade.

The new bill submitted by Representative Mike Thompson (D-California), who is Chairman of U.S. House Ways and Means Subcommittee on Select Revenue, all the other Democratic leaders on the subcommittee signed onto the bill, hoping Congress will take it up under a Democratic-controlled Senate and the Biden administration.

A similar bill was introduced in June 2020, then controlled by Republicans, and it failed. It was the latest of several attempts to reinstate the previous $7,500 tax credit. Democrats have attempted to resurrect the credit several times, each effort shut down by Senate Republicans. Now that Democrats have the final vote in any deadlock, it seems likely to make it through.

How the tax credit used to work and the new version

The original credit, passed during the Obama administration, limited the number of vehicles eligible for the credit to 200,000 vehicles. Tesla hit the mark first in 2018, followed by GM shortly after. Tesla CEO Elon Musk cut the price on vehicles in the U.S. after to help partially offset the loss of the credit.

Used EVs, if they qualify, can fetch a $2,500 tax credit through the GREEN Act.

The new version cuts the credit by $500, but it also changes the structure of the credit phase out after an automaker hits 600,000 vehicles. The first plan reduced the size of the credit in stages over the course of 12 months following hitting the end number. Now it drops to $3,500 for one quarter and then disappears. Owners who bought vehicles in the interim are not eligible to claim the credit retroactively – at this point.

Additionally, the GREEN Act allows used buyers to claim up to a $2,500 tax credit when purchasing a qualifying preowned electric car. The EV must be at least two years old and the sale price cannot exceed $25,000. Income caps for individuals and spouses filing taxes jointly may result in smaller credits, however.

Businesses aren’t being ignored as the bill creates tax breaks for companies and municipalities purchasing electric heavy-duty vehicles, including zero-emissions buses. Twenty percent of the sales price would be eligible for sales over $100,000.

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First Look: 2022 Nissan Pathfinder

February 4, 2021 admin

Nissan’s got a new Pathfinder for everyone for the 2022 model year.

Japan’s second-largest automaker is operating in catch-up mode – but after several years of struggle it’s hoping to make some major gains in the U.S. market with a wave of 10 new products set to roll out by the end of this year.

We’ve already seen several, including the new Sentra, Kicks and Rogue. Today, Nissan pulled the covers off two more major updates, including the long-overdue Frontier pickup and the 2022 Nissan Pathfinder. The SUV clearly needed some attention, the outgoing, fourth-generation model in showrooms with relatively few updates since the 2013 model year.

“Thirty-five years after the launch of the original model, Pathfinder has returned to its rugged roots,” said Jared Haslam, vice president, Product and Services Planning, Nissan North America. “Today’s large SUV owners want a vehicle that conveys strength and rugged capability, while using advanced safety and technology features to keep their family safe and comfortable during every-day adventures, and the all-new 2022 Pathfinder is ready to take on those adventures.”

New Nissan Pathfinder opts for a bolder look

The new Pathfinder’s sporting a more rugged look for the 2022 model year.

It’s been a while since Pathfinder followed the industry trend, migrating from a classic, body-on-frame platform to a more car-like unibody. While the 2022 model takes a relatively evolutionary approach to styling, the goal was to give the ute a “new, bold, more muscular look,” officials said during a media backgrounder ahead of the SUV’s official debut.

The underlying platform underwent what they describe as a “significant update” to improve on-road manners and to give the 2022 Pathfinder a bit more capability off-road – though this ute isn’t designed for serious trail crawling.

Visually, the primary influence was the original, 1986 Pathfinder, according to senior designer Ken Lee. This is no retro model, but those familiar with the old SUV will likely catch the way the 2022 model borrows from details like the chamfered grille and triangular rear windows.

“Now’s the right time for a return to a rugged (design) philosophy,” said Lee, though his team wanted to avoid the solid, slab-like looks some key competitors have lately adopted.

The wheels have been pulled further out to the corners on the new Pathfinder, with a bit more sculpting to the body sides. There’s also a new, floating C-pillar which works well with the 2022 model’s available two-tone roof.

Although not really a trail crawler, the new Pathfinder does have some off-road capabilities.

Rugged exterior, more comfortable interior

There are plenty of modern touches, as well, including the LED lamps and the now-familiar Nissan boomerang running light design, though hear “blockier” than on other recent models.

While the intent was to create a rugged looking exterior, “When people step inside they expect a lot of comfort,” said Lee, noting the increased use of soft-touch materials on all surfaces a passenger will likely come in contact with. And there are upscale options like semi-aniline leather, with seven different interior “environments” on the check list. The 2022 Nissan Pathfinder adopts a flat-bottom steering wheel and a floating touchscreen, with metallic accented shapes “bookending” the instrument panel.

The SUV comes in a standard, 8-passenger layout but a 7-passenger model with second-row captain’s chairs is available. So are a 10-way power driver’s seat and a tri-zone climate control.

The 2022 Pathfinder offers plenty of interior comfort and significant convenience technology features.

Buyers can opt for a 12.3-inch digital instrument cluster, rather than the standard analog gauges, as well as a 9-inch color touchscreen placed high on the IP. Pathfinder also gets an optional, 10.8-inch head-up display for the first time.

The Nissan Connect infotainment system can be paired with both Android Auto and Apple CarPlay, the latter also available in wireless form. And there’s an optional, 13-speaker Bose Premium sound system.

Family-oriented SUV adds plenty of new safety features

The new Pathfinder gets a variety of safety-related features, such as the Around View Monitor that provides a birdseye view of the SUV’s surroundings, as well as optional ProPILOT Assist, a system that is claimed to make driving easier on long trips – though it officially still requires the driver to maintain hands on the wheel. Among other things, it links to Pathfinder’s optional navigation system and active cruise control and can automatically slow the vehicle during sharp curves or at freeway exits.

The Nissan Safety Shield 360 system adds other smart systems, including Automatic Emergency Braking with Pedestrian Detection, Blind-Spot Monitor and Lane Departure Warning.

2022 Nissan Pathfinder nose driving snowstorm

With all-wheel drive, the Pathfinder is a very capable machine.

Power comes from a 284-horsepower 3.5-liter V-6 mated to a new 9-speed automatic transmission. With 259 pound-feet of torque, the package is capable of pulling what Nissan claims is a best-in-class 6,000 pound trailer load.

Options include two- and four-wheel-drive

The 2022 Pathfinder will be available in both two- and four-wheel-drive. And drivers will have the ability to control a variety of vehicle functions – including steering boost, throttle response and shifts – thanks to a seven-position Drive and Terrain Mode Selector.

Look for fuel economy and pricing to be announced closer to the new Pathfinder’s on-sale date this coming Summer.

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Toyota, Lexus Rolling Out New Online Sales Programs

February 1, 2021 admin

Toyota is making the buying process easier and more transparent with its new SmartPath program.

Analyst after analyst said that 2020 would leave an indelible mark on the automotive industry, specifically how new cars, trucks and utility vehicles are sold. Toyota and its luxury unit, Lexus, are proving them right.

Each company unveiled new retail “experiences” today, Toyota with “SmartPath” and Lexus its “Monogram” program. The goal is to allow potential buyers a flexible experience starting with the internet, giving them as much or as little “personal” touch as they desire.

“Our goal is to ensure we create the best experience for our customers and our dealers,” said Jack Hollis, senior vice president, Automotive Operations, TMNA. “As our customers’ expectations evolve, SmartPath provides our dealers the technology to exceed those expectations. Our shared mission is to make the experience of shopping, buying, and owning a Toyota as easy and carefree as driving one.”

(Nissan taking lead in online new vehicle sales.)

The Japanese automaker isn’t going it alone in this area. Most automakers have offered some form of online shopping for several years now; however, there are some automakers that are bulking up their online sales programs, notably Nissan.

Nissan revealed its new online sales program in late December. Called “Nissan@Home,” the process allows buyers to handle everything online from test drive to delivery. It tested the program at seven dealerships to work out the kinks before moving to a nationwide offering.

Toyota may have recognized the trend to toward growing internet sales early as it began piloting SmartPath in 2019, but the automaker recognizes that the COVID-19 pandemic “accelerated consumer demand for digital transactions.” The company noted a recent survey showed that two out of three shoppers are more likely to purchase a vehicle online.

Monogram, the Lexus program, just as is the case with SmartPath allows buyers to start their buying process online. The system is designed to be transparent in order to make the process easier for the potential new owner as well as dealership personnel.

Both programs are currently in what’s best described as an expanded pilot phase. It’s available in several markets, at least 50 in the U.S., with plans to continue expanding it throughout the year. The flexibility of starting with the internet, but inviting an actual person in at any point in the process seems to fit with exactly what buyers want these days.

(Used cars booming, Honda takes aim at retailers like CarMax, Carvana.)

Automakers should get used to it, according to a recent study by Gartner Research. Currently less than 1% of all sales are completed online, that number is expected to jump to 20% within five years.

Lexus is also rolling out a new online shopping program. It’s named its version “Monogram.”

Mercedes-Benz, Ford, General Motors and other automakers all referenced significant upticks in internet-based sales in the last year.

However, a trend isn’t a majority necessarily. According to Deloitte’s newest report, the 2021 Global Automotive Consumer Study, release in mid-January, the number of people buying vehicles online during the pandemic was done more out of necessity than preference.

Seventy-one percent of U.S. vehicle buyers prefer an “in-person sales experience,” the study revealed. This biggest part of that is 75% want to see and touch the vehicle before they buy it, with 64% needed some time behind the wheel as well.

“Unlike many other retail sectors that have seen a wholesale shift to online buying, purchasing a vehicle remains a largely personal experience for many consumers,” said Karen Bowman, vice chairman, Deloitte LLP and U.S. automotive sector leader.

“However, some people will be looking for a virtual sales experience to maximize convenience, speed and ease of use. This will likely result in a more complicated, and potentially costly, set of consumer expectations for dealers to meet at a time when businesses are looking to recover and thrive in the wake of the pandemic.”

(Pandemic may not have changed car buying habits of consumers.)

One area where U.S. consumers were happy to see handled via the internet was vehicle service. The ability to get online and have your car or SUV picked up by a dealer at home or work was appealing with 46% of respondents in favor of that type of interaction — provided it is free.

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New Vehicle Sales Slowed in January Despite Improved Retail Results

January 27, 2021 admin

Depressed fleet sales are putting a drag on January’s results, offsetting improved retail results.

Depressed fleet demand continues to hobble the overall demand for new vehicles, leaving the seasonally adjusted annual rate of sales in January 5.5% behind year ago levels, according to new estimates by analysts.

Conversely January retail sales are expected to increase slightly, according to TrueCar. U.S. retail deliveries of new cars and light trucks are forecast to see an increase of 0.4% from a year ago when adjusted for the same number of selling days. However, that increase isn’t going to be enough to offset the impact of the depressed fleet market.

TrueCar, the car-buying help service, expects the total SAAR to drop to an annual rate of 15.9 million units from 16.8 million units in January 2020 just before the COVID-19 pandemic sent the car business into a tailspin.

(New year brings new deals on new cars, trucks and utes.)

“Consumer activity has kept the vehicle market on a strong recovery path in recent months. Retail sales, which generally account for four-out-of-five vehicles sold in the U.S. market, are expected to remain strong in January,” noted a report from Cox Automotive.

The Cox report said positive economic news, coupled with improving consumer confidence, is helping rebuild both interest and ability to buy.

“Entering 2021 with retail sales in line with last year is a big win for the automotive industry,” said Nick Woolard, lead industry analyst at TrueCar.

“However, while retail sales have rebounded, rental fleets remained depressed and continue to interrupt fleet sales. As a result, fleet sales are struggling to come back to pre-pandemic levels and are driving total unit sales down,” Woolard said.

In addition, the average transaction prices for new vehicles are projected to be up 4.2%, or $1,509, from a year ago but down 4.5%, or $1,759, from December 2020. TrueCar projects that U.S. revenue from new vehicle sales will reach approximately $39 billion for January 2021, down 4.4% from a year ago.

(Despite production cuts due to chip shortages vehicle inventory remains stable.)

“The automotive industry continues to reap the benefits of continued strength in retail demand with lower incentive spend.

Improved consumer confidence and other factors continue point to continued retail sales strength.

“A handful of brands such as Ford, Genesis, GMC, Ram and Toyota, appear to be in the coveted quadrant of both retail growth as well as incentive decline. This is mostly driven by new product and being in the right segments or a combination of the two,” added Woolard.

Woolard said average transaction prices have finally come down from the record-setting highs we saw last month but are still higher than this time last year. Of the top carmakers, only Kia has an average transaction price below $30,000, TrueCar reported.

Alain Nana-Sinkam, vice president of Industry Insights at TrueCar, said the trend is most likely to continue so buyers are going to adjust their buying process in response.

“As new vehicle prices rise, we may see more price-conscious shoppers gravitate back towards smaller segments or the used car market due to growing concerns around affordability.”

(Auto sales gain traction as Americans avoid mass transit.)

Fleet sales for January 2021 are expected to be down 23.7% from a year ago but used vehicle sales for January 2021, which are critical for setting the price of leases on new vehicles, are expected to reach 3.2 million, up 1% from a year ago and up 10% from December 2020.

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Is Ford Making an All-Electric Mustang? Maybe

January 21, 2021 admin

Could the next-gen Ford Mustang coupe come only as a battery-electric model?

Ford Motor Co.’s gotten such an overwhelmingly positive reaction to the all-electric Mustang Mach-E, it’s rumored to be making the next-generation of the sports car a fully electric offering as well.

According to AutoForecast Solutions, the automaker will not build the next version of the pony car until 2028. The reason for the delay? It needs to be redesigned on a battery-electric platform. Further, it’s expected to be the only powertrain for the new Mustang.

“… the gas-fueled burble of the V-8 is replaced with the shocking acceleration of an electric motor when the standard Mustang becomes an EV in just a few years,” said Sam Fiorani, vice president of global vehicle forecasts, in the company’s podcast on Jan. 18.

(New Mustang Mach-E is just the first step in “electrification” for Ford.)

The early success of the Mustang Mach-E suggests that an all-electric version of the sports car could be well received by aficionados.

Fiorani’s podcast was followed by a report by Autoline Detroit Tuesday, recounting the AFS report about the next version of the Mustang. Although it isn’t out of the question for the Mustang to get an electric powertrain, for it to be the only offering is a bit surprising.

Many have suggested some form of electrification, such as a small electric motor to add some more power and torque has certainly been bandied about. Several other sports cars have move to the hybrid set up to boost performance.

It should be noted that in 2017 the automaker killed a $1.6 billion investment in Mexico, redirecting $700 million of that to expand the Flat Rock plant. Ford would add a new body shop at the site to handle two unnamed battery-electric vehicles, officials said at the time, although it was suggested that one would be a hybrid.

The site currently produces just the Mustang, which until recently included the Shelby GT350 and GT350R models. Those two vehicles have been discontinued, with the GT500 living on and now the Mach 1 making a comeback later this year. Ford officials have not responded to TheDetroitBureau.com at the time of publication.

Ford officials have long maintained that electrification was part of the company’s future, not its sole focus, unlike its rival, General Motors, which has been dealing with some electrification rumors lately too. Last week, reports resurfaced that an all-electric Chevrolet Corvette was in the works, but following in Ford’s footsteps.

Ford announced plans in 2017 to invest $700 million in its Flat Rock, Michigan, plant, which currently builds only the Mustang, to build electric vehicles.

(Ford axes $1.6B Mexico plant for $700M Michigan upgrade.)

While General Motors insiders never really downplayed reports about the potential electrification of the ‘Vette, including a fully electric model. However, last week there were reports that the bowtie brand was considering an electric Corvette crossover like the Mustang Mach-E because of the warm reception it’s getting.

The flames were fanned during CES2021 when GM officials talked about offering a variety of new electric vehicles between now and 2030. Earlier reports centered on a 1,000-horsepower monster dubbed the Corvette Zora, named after the creator of the original car. The move to create an all-electric crossover would check off two “rumor” boxes, if you will: an all-electric model and the creation of a separate Corvette sub-brand.

The downside, of course, is that Corvette loyalists would shun it immediately. It’s been barely a year since the eighth-generation Corvette – the C8 to fans – made its debut, marking the switch to a mid-engine layout, the most radical shift for the sports car in its nearly seven decades on the market.

Several senior members of the Corvette team have hinted at plans in conversations with TheDetroitBureau.com, among other things indicating the new car’s platform could allow space for a battery pack.

(Could an all-electric Corvette crossover be in the works?)

Several purported timetables have emerged indicating Chevrolet is working on hybrid or plug-in versions of the sports car. But when directly asked about the opportunity of a hybrid model, GM President Mark Reuss has responded on several occasions with the company’s new mantra, that it is “on a path to an all-electric future.

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Stellantis Enjoys Warm Welcome from European Investors

January 18, 2021 admin

Stellantis Chairman John Elkann is meeting with the media tomorrow to talk about the company’s future.

Not every merger involving an automaker these days involves a blank-check company. The newly minted tie-up between Fiat Chrysler Automobiles N.V. and Peugeot S.A. was finalized over the weekend and the resulting company, Stellantis N.V., is enjoying a warm welcome.

At least on the stock market.

The new company’s stock trades on three exchanges and it finished the day on the Paris exchange up nearly 7%, closing at €13.14. It also jumped up 7.7% on the Milan exchange.

The New York Stock Exchange, the third exchange it’s traded on, was not open today due to the Martin Luther King Jr. holiday.

(Chrysler is no more as Stellantis comes to life.)

CEO Carlos Tavares has a lot on his corporate plate now that the merger is complete.

The $52 billion merger of near equals creates a massive enterprise with operations on six continents, employs about 400,000 people, sells – at least for the time being – 14 vehicle brands and sells 8.1 million vehicles annually, making it the fourth-largest automaker in the world behind Volkswagen, Toyota and the Renault-Nissan-Mitsubishi Alliance.

With all of those possibilities, it’s going to take a press conference Tuesday to start revealing what Stellantis will look like now that’s it’s a living, breathing entity. What brands will stay? How many workers will keep their jobs?

People are nervous because the CEO of the new enterprise, Carlos Tavares, has a history of being fearless when it comes to eliminating unprofitable operations and processes in the pursuit of corporate profit. One need only look at how what he did with former General Motors’ subsidiary Opel. A money-loser for a decade, he had it in the black in one year.

(FCA CEO Manley gets new assignment following Stellantis merger.)

“Stellantis faces a mixed outlook as U.S. stimulus plans may buoy Chrysler vs. a more uncertain outlook for Peugeot in Europe,” Michael Dean, BI automotive analyst told Bloomberg. “Former PSA CEO Carlos Tavares takes the helm and, similar to his handling of PSA’s takeover of Opel in 2017, we anticipate a new strategy in the first 100 days of his stewardship. All regions face a difficult 1H amid continued lockdowns.”

Quirky name aside, investors gave Stellantis a warm welcome when it began trading Monday.

The two companies have worked to allay fears of major cutbacks in France and Italy. While top managers have outlined plans to trim costs by $6 billion following the merger, they insist they will be able to do that without closing any plants. They have outlined 40% of those cost savings coming from purchasing, 40% from combining product development efforts, and 20% from marketing and other operations.

However, it’s unclear how Tavares plans to tackle other issues such as improving the company’s performance in China, the world’s largest automotive market, and bolstering its electrification efforts, especially in the aforementioned China as well as in the U.S. Just addressing those two issues are likely to require billions of dollars and euros. Some of plans for these things and more may get touched on Tuesday, Marco Santino, a partner at consulting firm Oliver Wyman, told Reuters.

(Fiat Chrysler and PSA not exactly a “merger of equals.”)

“He has proven to be the kind of person who prefers action to words, so I don’t think he will make loud statements or try to over-sell targets,” he said.

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