William Maley

During the unveiling of the latest five-year plan for Fiat Chrysler Automobiles, Alfa Romeo revealed that it would have two more SUVs by 2022. At the time, we knew some of the details on the larger of the two new SUVs - would come with a new mild-hybrid system and use a stretched version of the Giorgio platform - what underpins the Giulia and Stelvio. But we had no details on the smaller model, until this week. Auto Express reports that the smaller model will use a shrunken version of Giorgio and feature electrification. This will likely include a hybrid system to take the place of a diesel. A possibility is adding a plug-in hybrid system. The new SUV will also come with Level 3 autonomous driving tech. The smaller SUV is expected to arrive first in 2020, followed by the larger one in 2021. Source: Auto Express View full article

Back in December, we reported on General Motors' VIN decoder for the 2019 model year. One of the interesting bits was the 2019 Chevrolet Cruze getting a CVT. We speculated at the time that the transmission would appear in a Eco model. But when GM announced the 2019 Cruze in April, there was no mention of the CVT. The only transmission news was that the six-speed manual had been dropped. Was the mention of the CVT a misprint? Nope. “There were a small number of Cruzes built with a CVT for fleet use only which is why the option is disclosed on the EPA website,” explained Katie Minter, Chevrolet spokeswoman to CarsDirect. The CVT option doesn't offer any significant improvement in terms of fuel economy - it only raises the combined figure from 32 to 33. Source: CarsDirect View full article

Yesterday, Moody's Investment Services dropped some bad news on Ford as they have downgraded their credit rating to Baa3 - one rung above speculative grade. Analysis by the investment service said the downgrade "reflects the erosion in the company's global business position and the challenges it will face implementing its Fitness Redesign program." The erosion that Moody's is referring to includes, Profit margins in North America beginning to soften due to higher costs Continuing losses in Europe and concerns of it getting worse due to Brexit Strains in the Chinese and South American markets Moody's said that downgrading Ford's credit rating further isn't out of the question. "The ratings could be downgraded absent clear progress in pursuing the fitness initiatives by early to mid-2019, with evidence the company is on a strong trajectory for recovery." Downgrading Ford's credit rating will make it harder for the automaker to get money from investors. “There are many investors who currently purchase Ford’s debt that would be unable to do so. That means many investors would have to sell their bonds. It means that there are investors that Ford can currently go to to get money and might not be able to do that in the future,” explained Bruce Clark, senior vice president at Moody’s to the Detroit Free Press. In a statment, Ford spokesman Bradley Carroll said the company has been delivering solid financial results "year after year" and believes the market will come around to see their progress. “Since coming through the Great Recession, Ford Motor Company has delivered year after year of solid financial results and operating cash flows. The company has a strong balance sheet, which provides financial flexibility. We know we can capitalize on our strengths, bolster underperforming products and regions and disposition where we cannot make an appropriate return. We’re confident that as we do, the market will recognize our progress,” said Carroll. Ford's Fitness Redesign program will see the company assessing their portfolio "with the goal of restructuring, contracting or exiting businesses that will not be able to generate adequate returns. Restructuring initiatives could entail $11 billion in charges with $7 billion in related cash expenditures over the next three to five years," Moody's wrote. We've already seen some of this as Ford announced they would be dropping most of their carline up to focus on trucks and utility vehicles back in April. "The company's decision to wind down its car business in North America, which we viewed as credit positive, reflects its willingness to make aggressively disciplined capital allocation decisions," said Moody's. But there is one major concern Moody's says in their report Ford still needs to address. Ford hasn't been fully clear with proving more details about the program. "At the same time, I think Ford needs to be even more transparent. Where’s their five-year plan? Fiat Chrysler has done an amazing job communicating their plan. General Motors has done a good job communicating their strategy. I can’t say I have that same clear vision from Ford,” said Rebecca Lindland, executive analyst at Kelley Blue Book. "The alarm bells should have been going off awhile in Dearborn. Had Ford really had a bullish outlook with China, they might have kept Aston Martin, Volvo or Jaguar Land Rover" — brands it sold, said Dave Sullivan, manager of product analysis for AutoPacific Inc. "Ford is trying to add more crossovers, but they are late to market by years. FCA and others got in while the market was hot. I think the opinion from many on Wall Street is that Ford is a one-trick pony and that pony's name is F-Series." Source: Detroit Free Press View full article

Earlier this month, Fiat Chrysler Automobiles filed a complaint with the U.S. International Trade Commission over the Mahindra Roxor - a side-by-side off-road utility. FCA alleges that the certain design elements of the Roxor infringe on the " intellectual property rights of FCA's Jeep design," and is wanting to stop the sale of the model in the U.S. Mahindra is fighting back. Reuters reports that the company has filed a public interest statement with the U.S. ITC and started proceedings in a Michigan court for an injunction into FCA's complaint. We are asking the court to block Fiat from participating in the ITC [International Trade Commission] claim -- an injunction -- because of the fact that they agreed in 2009 to never bring such claims if we use a grille that they approved. The Roxor uses that grille," Mahindra said in a statement. (Emphasis mine). "We are also arguing that Fiat is using the ITC case to harm our ROXOR business by creating negative publicity, damaging our reputation and our stature in the marketplace.” FCA in its complaint said that Roxor imports will hurt them as the model are underselling the Jeep Wrangler. A lot of this comes down to the Roxor being manufactured in India, and then shipping the model as a knock-down kit to their Detroit-area assembly plant for final assembly. Mahindra disputes this, saying the Roxor doesn't compete with the Wrangler as it's a side-by-side off-road utility. " We also demonstrated that the ROXOR is a vehicle that was always intended only as an off-road vehicle, does not compete with Fiat vehicles, is manufactured and assembled in the first OEM plant to be built in Michigan, USA, in the last 25 years, was the result of more than three years of research and development, and categorically rejected the notion that the ROXOR was an imported low quality “knock-off” kit car," the company said. Source: Reuters via Automotive News (Subscription Required), Mahindra Mumbai, August 29, 2018 – “A complaint was filed by FCA US, LLC (“Fiat”) with the United States International Trade Commission (“ITC”) against Mahindra which we believe is without merit. In response, we have taken a number of actions both within the ITC and in Federal District Court that we would like to share with you. Mahindra filed a Public Interest Statement with the ITC on August 22, 2018. This Statement expresses our position on this matter and explains how it is in the public interest for the ITC to rule against Fiat and in favor of Mahindra. Our goals on the public interest statement were two-fold. One was to state our position on the merits and the other was to correct inaccuracies regarding Mahindra as a company and the ROXOR as a product. We set the record straight on the history of Mahindra, including its U.S. operations. We also demonstrated that the ROXOR is a vehicle that was always intended only as an off-road vehicle, does not compete with Fiat vehicles, is manufactured and assembled in the first OEM plant to be built in Michigan, USA, in the last 25 years, was the result of more than three years of research and development, and categorically rejected the notion that the ROXOR was an imported low quality “knock-off” kit car. On August 23, 2018, Mahindra filed a complaint in Federal Court in Michigan on the issue of the applicability and enforcement of our 2009 agreement with Fiat. We are asking the court to block Fiat from participating in the ITC claim – an injunction – because of the fact that they agreed in 2009 to never bring such claims if we use a grille that they approved. The ROXOR uses that grille. We are also arguing that Fiat is using the ITC case to harm our ROXOR business by creating negative publicity, damaging our reputation and our stature in the marketplace.” View full article

It is no secret that automakers will go to extreme lengths to analyze a competitor's vehicle. For example, Daimler was accused by a couple last year of renting their privately owned Tesla Model X to dismantle and preform various tests. The automaker put the vehicle back together before returning it, but there was significant damage that caused the couple to bill Diamler for that and other items such as lost income. The company has once again found itself making headlines for pulling another stunt. German paper Der Spiegel reports last year that Deutsche Post DHL held a demonstration event for their new StreetScooter electric vans for possible customers to get feedback. One of the 'customers' was a nursing-care service from near Frankfurt that wanted to see if the van would work for patient transport. But suspicions arose when Deutsche Post DHL checked the address given by the service and found out it was a fake. The supposed nursing care service only existed on paper as a 'mailbox' company. Good thing that Deutsche Post DHL made sure the vans used at the event had GPS trackers. Engineers were able to track the vehicle to a Daimler factory in Stuttgart - a long distance from Aachen where the event was held. They would also discover the van was being driven on Daimler's test track. After getting some lawyers, Deutsche Post went over to the site and demanded their vehicle. Daimler would comply and returned it a half-hour after the visit. Daimler told Der Spiegel that it was fair game for them to take and examine the vehicle since Deutsche Post DHL would be offering it to third parties. But it should be noted that Daimler didn't have an explanation to the nursing-care service cover story. Maybe it is just us, but we would assume that some sort of GPS tracker is in a vehicle for a driving event. It would make us think twice about taking a vehicle. One thing is for certain, we're not asking any Daimler employee to help us out in a heist. Source: Der Spiegel View full article

“Despite the positives, the Ioniq finds itself between a rock and hard place.” That was how I closed my review of the 2017 Hyundai Ioniq SEL earlier this year. Despite me finding a lot to like about this hybrid, I found myself struggling as determining whether it was better or worse than the Toyota Prius. A few weeks ago, another Ioniq arrived in my driveway for a weeklong evaluation. This particular variant is the base Blue model, which is positioned as the mileage champ in the Ioniq lineup. Maybe this model could sway me in one direction or the other. EPA figures stand at 57 City/59 Highway/58 Combined, up 2/5/3 when compared to the Ioniq SEL I drove last year. My average for the week was an impressive 62 mpg - a huge increase over the 45 mpg in the last Ioniq I drove. Why the massive difference in average fuel economy? It comes down to the weather. The Blue was driven in a week where the average temperature was around 80 degrees, whereas the SEL was driven in conditions where it was below freezing. The warmer temps allowed the vehicle to rely more on electric power only. I would estimate that 30 to 40 percent of the miles driven in the Ioniq was just on electric only. The powertrain is unchanged in the Blue. There’s a 1.6L Atkinson Cycle four-cylinder engine, a 32 kW electric motor, and a Lithium-ion Polymer battery that produces a total output of 139 horsepower. This is paired with a six-speed dual-clutch transmission. I had no issues with keeping up with traffic as the powertrain delivered decent acceleration. The dual-clutch delivered smooth and quick shifts. Handling is a strong point to the Ioniq as it delivers little body roll and responds quickly to steering inputs. Ride quality could be better as the Ioniq does let in more jolts than the Kia Niro or Toyota Prius. Another area the Ioniq doesn’t fare so well in us noise isolation. There is a fair amount of tire roar that comes inside at speeds above 50 mph. Telling the Ioniq Blue apart from the other models is quite easy. The front end has a plain black grille and vents in the bumper where the LED foglights would reside. 15-inch wheels with aero wheel covers come standard. Aside from some missing features such as power adjustments for the driver’s seat, the interior of the Ioniq Blue is the same as the SEL. That means a simple and clean dash design, a set of front seats that become a bit uncomfortable during long trips, and a tight back seat for tall passengers. For being a base model, the Blue comes well equipped. There is a proximity key, push-button start, 7-inch touchscreen with Apple CarPlay and Android Auto compatibility; Bluetooth, dual-zone climate control, and automatic headlights. How much? The Blue begins at $22,220, and my tester came to an as-tested price of $23,210 with destination and optional floor mats. As my week with the Ioniq Blue came to a close, I came to the realization that I liked it slightly more than the Prius. A lot of it comes down to the Ioniq offering better performance while returning just as impressive fuel economy figures as the Prius I drove back in 2016. The high amount of features for a low price also favors the Ioniq. I still do think the Ioniq is in a bit of tough spot due to the large appetite for crossovers. This is evident when you compare the sales of the Ioniq to its sister model, the Kia Niro. Through the end of July, the Niro outsold the Ioniq by 6,716 units. Disclaimer: Hyundai Provided the Ioniq, Insurance, and One Tank of Gas Year: 2018 Make: Hyundai Model: Ioniq Trim: Blue Engine: 1.6L GDI Atkinson-Cycle Four-Cylinder, Electric Motor, Lithium-ion Polymer Battery Pack Driveline: Six-Speed Dual-Clutch Transmission, Front-Wheel Drive Horsepower @ RPM: 104 @ 5,700 (Gas); 43 @ 0 (Electric); 139 (Total) Torque @ RPM: 109 @ 4,000 (Gas); 125 @ 0 (Electric) Fuel Economy: City/Highway/Combined - 57/59/58 Curb Weight: 2,996 lbs Location of Manufacture: Ulsan, South Korea Base Price: $22,200 As Tested Price: $23,210 (Includes $885.00 Destination Charge) Options: Carpeted Floor Mats - $125.00 View full article