William Maley

Automakers already have enough of a headache with the current administration in the white house, but news that broke today is only going to make it even worse. Wilbur Ross, the U.S. Secretary of Commerce has announced that President Donald ordered an investigation under Section 232 of the Trade Expansion Act of 1962 to determine "whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security." "There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry. The Department of Commerce will conduct a thorough, fair and transparent investigation into whether such imports are weakening our internal economy," said Ross in a statement. There's also this interesting bit in the statement, The Wall Street Journal reported yesterday that tariffs as high as 25 percent could be slapped on new cars. Currently, the tariff on imported vehicles is at 2.5 percent. Imported trucks are already hit with a 25 percent tariff via the chicken tax. There are a couple likely reasons for this investigation, Mid-term elections are coming up and this is seen as a way to court voters in the heartland with the promise of bringing back jobs to the U.S. Possibly being used as leverage in negotiations with Canada and Mexico over the North American Free Trade Agreement (NAFTA); the European Union, and China. This investigation could hurt Mexico the most as they are the largest source of U.S. auto imports - delivering just under $50 billion of imports last year. As for automakers, Bloomberg reports that Jaguar Land Rover, Mazda, and Mitsubishi would be the most affected as all of their vehicles are imported. The news sent the stock prices of foreign automakers downward. Shares in Mazda dropped 5.2 percent at the close of trade in Japan, while Daimler and BMW saw their stock price drop more than two percent. This announcement has gotten condemnation from various governments, trade groups, analysts, and automakers. Here are just a few. "China opposes the abuse of national security clauses, which will seriously damage multilateral trade systems and disrupt normal international trade order," said Gao Feng, spokesman at the Ministry of Commerce in China during a regular press briefing. "We will closely monitor the situation under the U.S. probe and fully evaluate the possible impact and resolutely defend our own legitimate interests." “We have to consider this as something of a provocation. I have the growing impression that the U.S. no longer believes in the competition of ideas, but only the law of power. It fills me with grave concern,” said Eric Schweitzer, president of the Association of German Chambers of Commerce and Industry. “The U.S. auto industry is thriving and growing. To our knowledge, no one is asking for this protection. This path leads inevitably to fewer choices and higher prices for cars and trucks in America,” said John Bozzella, CEO of the Association of Global Automakers, a trade group that represents Hyundai, Nissan, Toyota, and others. Source: Automotive News (Subscription Required), Bloomberg, Reuters, Wall Street Journal (Subscription Required), U.S. Department of Commerce U.S. Department of Commerce Initiates Section 232 Investigation into Auto Imports Today, following a conversation with President Donald J. Trump, U.S. Secretary of Commerce Wilbur Ross initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended. The investigation will determine whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security as defined in Section 232. Secretary Ross sent a letter to Secretary of Defense James Mattis informing him of the investigation. “There is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry,” said Secretary Ross. “The Department of Commerce will conduct a thorough, fair, and transparent investigation into whether such imports are weakening our internal economy and may impair the national security.” During the past 20 years, imports of passenger vehicles have grown from 32 percent of cars sold in the United States to 48 percent. From 1990 to 2017, employment in motor vehicle production declined by 22 percent, even though Americans are continuing to purchase automobiles at record levels. Now, American owned vehicle manufacturers in the United States account for only 20 percent of global research and development in the automobile sector, and American auto part manufacturers account for only 7 percent in that industry. Automobile manufacturing has long been a significant source of American technological innovation. This investigation will consider whether the decline of domestic automobile and automotive parts production threatens to weaken the internal economy of the United States, including by potentially reducing research, development, and jobs for skilled workers in connected vehicle systems, autonomous vehicles, fuel cells, electric motors and storage, advanced manufacturing processes, and other cutting-edge technologies. Following today’s announcement, the Department of Commerce will investigate these and other issues to determine whether imports of automobiles and automotive parts threaten to impair the national security. A notice will be published shortly in the Federal Register announcing a hearing date and inviting comment from industry and the public to assist in the investigation. View full article

Last week, Kia announced a new 48-volt mild-hybrid system that would be paired up with a diesel engine to improve performance and emissions. The first model will be the European-market Sportage. Today, Kia has unveiled a lightly refreshed Sportage with minor updates and more information on the mild-hybrid system. Exterior changes are quite small with new bumpers and headlights. The top GT-Line comes with new chrome trim and metallic skid plates. Inside, Kia has fitted a new steering wheel and instrument cluster. For safety, the 2019 Sportage gets Kia's Smart Cruise Control with Stop & Go, around-view camera system, and a driver attention warning. As for the mild-hybrid powertrain, it will come paired with a 2.0L ‘R’ diesel four-cylinder. No power figures or fuel economy figures were provided by Kia. The company also announced a new 1.6L diesel that will take the place of the 1.7. Kia will launch the 2019 Sportage in Europe in the next quarter. We're expecting Kia to do something similar to the U.S. Sportage, minus the diesel mild-hybrid engine. But it should be noted that Kia is working on a mild-hybrid system for gas engines, so our updated Sportage could have a mild-hybrid powertrain of its own. Source: Kia KIA UNVEILS NEW SPORTAGE WITH DIESEL MILD-HYBRID POWERTRAIN, NEW TECHNOLOGIES AND FRESH DESIGN Wednesday, 23 May 2018 Updated interior and exterior design for UK and global best-seller Revised powertrain line-up includes EcoDynamics+ 2.0-litre diesel mild-hybrid and efficient new 1.6-litre ‘U3’ diesel EcoDynamics+ powertrain reduces CO2 emissions by up to four per cent under WLTP New technologies include upgraded infotainment and active driver aids On-sale in Europe during Q3 2018 Kia Motors has revealed the New Kia Sportage, introducing a range of enhancements to the brand’s UK, European and global best-seller. The new model pairs an updated exterior and interior design with new safety and infotainment technologies. Powertrains are also fully-compliant with future emissions standards. The Sportage’s advanced new EcoDynamic+ 48V diesel mild-hybrid powertrain is the first to be launched as part of the brand’s global powertrain electrification strategy. Kia is the first manufacturer to offer hybrid, plug-in hybrid, battery-electric and 48-volt mild-hybrid technology across its full model line-up. Kia will launch 16 advanced powertrain vehicles by 2025, including five new hybrids, five plug-in hybrids, five battery-electric vehicles and, in 2020, a new fuel-cell electric vehicle. Kia sold more than 131,000 examples of the Sportage in 2017, representing a quarter of the brand’s total European sales. In the UK, the Sportage continues to be the brand’s biggest seller with 39,683 delivered to customers in 2017, making up over a third of UK sales last year. Updates to the Sportage range also include modifications to ‘GT-Line’ models. European customer deliveries of the new model will start during Q3 2018. Upgraded powertrains include new EcoDynamics+ diesel mild-hybrid The Sportage now offers a wider range of engines, including Kia’s new ‘EcoDynamics+’ 2.0-litre ‘R’ diesel mild-hybrid powertrain. EcoDynamics+ supplements acceleration with power from a 48-volt battery, and extends engine ‘off time’ with a new Mild-Hybrid Starter-Generator unit. It can reduce CO2 emissions by up to four per cent on the Worldwide harmonized Light vehicles Test Procedure (WLTP). The Sportage’s existing 1.7-litre CRDi (Common-Rail Direct injection) diesel engine has been replaced with Kia’s efficient new 1.6-litre ‘U3’ CRDi engine, the cleanest diesel engine Kia has ever made. The new 1.6-litre diesel engine produces 115 or 136ps, with higher-powered models available with all-wheel drive and seven-speed double-clutch transmission. All powertrains are now fully compliant with the Euro 6d TEMP emissions standards. Updates to attractive Kia SUV design Improvements to the Sportage’s sporty exterior design include new front and rear bumpers, as well as redesigned front and rear lamps and new 16-, 17- and 19-inch alloy wheel designs. Options include chrome sill trim and metallic skid plates, and five new paint colours. ‘GT-Line’ models are equipped with a gloss black hot-stamped radiator grille, a gloss black and silver skid plate, and dark chrome inserts on the side sills and rear tailgate. The GT-Line’s unique 19-inch alloy wheels have been redesigned, and all models are fitted with a dual exhaust rear valance and revised ‘ice cube’ LED fog lamp designs. The newly-refined cabin features a new steering wheel and revised instrument cluster, as well as new black-and-grey two-tone upholstery. ‘GT-Line’ models are available with new black-and-grey two-tone leather seats, or optional black leather with red accents. Smart safety technologies and new infotainment systems The new Sportage adopts Kia’s latest advanced driving assistance systems, including Smart Cruise Control with Stop&Go, an Around View Monitor for easier parking manoeuvres, and Driver Attention Warning, to combat fatigue and inattentiveness at the wheel. European customers have a choice of Kia’s new infotainment systems: a 7.0-inch touchscreen, or a new ‘frameless’ 8.0-inch infotainment system. UK on-sale date, pricing and specification will be announced in due course. View full article

There has been a lot of talk about driverless cars with companies (both automotive and tech) promising a safe and grandiose future and a number of high-profile crashes that have resulted in fatalities. This got us wondering how the general public feels about them. Recently, two studies came asking this and their results are very interesting. First up is CarGurus which asked 1,873 vehicle owners in the U.S. between the ages of 18 to 65 about self-driving vehicles. 79 percent of participants said they were not excited about owning a self-driving car. 84 percent said they were unlikely to own a self-driving car in the next five years. This number drops to 59 percent when the window is extended to ten years. Here's where it gets interesting: In terms of geographical areas, owners on the West Coast are the most excited at 26 percent. The least, those in Central U.S. at 18 percent. When it comes to brands, BMW owners lead the pack when asked if they would consider a self-driving vehicle from their brand - 55 percent. Least likely? That would be Chrysler owners at 23 percent Safety is the key reasons that owners are excited and concerned about self-driving cars - 64 and 81 percent respectively. When asked what company is most trusted to develop self-driving cars, 27 percent of participants said none. Second and a bit of surprise was Tesla at 24 percent. (We're wondering if this survey was done before the fatal crash of a Tesla Model X on Autopilot in late March) The second study comes to us from AAA which asked people how trustful are you of self-driving cars. 73 percent said they would be too afraid to ride in an autonomous car, up from 63 percent in late 2017. Additionally, 63 percent of those asked said they would feel less safe either walking or on a bike if there is a self-driving vehicle. We have to assume that the fatal crash involving an Uber autonomous vehicle made this number rise. AAA's study also found a big surprise. Millenials, a group that is quick to accept new technologies, are not as trusting as they once were. In late 2007, 49 percent said they were afraid to ride in an autonomous vehicle. Now, that number rose to 64 percent. “Despite their potential to make our roads safer in the long run, consumers have high expectations for safety. Our results show that any incident involving an autonomous vehicle is likely to shake consumer trust, which is a critical component to the widespread acceptance of autonomous vehicles,” said Greg Brannon, AAA’s director of Automotive Engineering and Industry Relations. Source: Roadshow, AAA AAA: American Trust in Autonomous Vehicles Slips ORLANDO, Fla. (May 22, 2018) – Following high-profile incidents involving autonomous vehicle technologies, a new report from AAA’s multi-year tracking study indicates that consumer trust in these vehicles has quickly eroded. Today, three-quarters (73 percent) of American drivers report they would be too afraid to ride in a fully self-driving vehicle, up significantly from 63 percent in late 2017. Additionally, two-thirds (63 percent) of U.S. adults report they would actually feel less safe sharing the road with a self-driving vehicle while walking or riding a bicycle. “Despite their potential to make our roads safer in the long run, consumers have high expectations for safety,” said Greg Brannon, AAA’s director of Automotive Engineering and Industry Relations. “Our results show that any incident involving an autonomous vehicle is likely to shake consumer trust, which is a critical component to the widespread acceptance of autonomous vehicles.” Surprisingly, AAA’s latest survey found that Millennials – the group that has been the quickest to embrace automated vehicle technologies — were the most impacted by these incidents. The percentage of Millennial drivers too afraid to ride in a fully self-driving vehicle has jumped from 49 percent to 64 percent since late 2017, representing the largest increase of any generation surveyed. “While autonomous vehicles are being tested, there’s always a chance that they will fail or encounter a situation that challenges even the most advanced system,” said Megan Foster, AAA’s director of Federal Affairs. “To ease fears, there must be safeguards in place to protect vehicle occupants and the motorists, bicyclists, and pedestrians with whom they share the road.” AAA supports thorough testing of automated vehicle technologies as they continue to evolve, including testing under progressively complicated driving scenarios and under varying conditions, but not at the expense of safety. Additionally, to help prevent the accidental misuse of the systems, AAA advocates for a common sense, common nomenclature and classification system, and similar performance characteristics of future autonomous vehicle technologies. “There are sometimes dozens of different marketing names for today’s safety systems,” continued Brannon. “Learning how to operate a vehicle equipped with semi-autonomous technology is challenging enough without having to decipher the equipment list and corresponding level of autonomy.” To help educate consumers on the effectiveness of emerging vehicle technologies, AAA is committed to the ongoing, unbiased testing of automated vehicle technologies. Previous testing of automatic emergency braking, adaptive cruise control, self-parking technology and lane keeping systems has shown both great promise and great variation. Future AAA testing will look at how well systems work together to achieve higher levels of automation. View full article

Ford's announcement of dropping most of their lineup of traditional cars likely caused a number of automakers to consider doing something similar. One automaker that will not be doing this is Subaru. Dominick Infante, Subaru’s national manager of product communications told Motor Trend one of the key reasons they keeping traditional cars is increasing gas prices. “Gas prices are starting to come up now. So a good hedge for better economy is having a sedan,” said Infante. “So we still make the Impreza and the Impreza hatchback. They do get better gas mileage than say a comparable CUV like the Crosstrek so we do sell those so if the market does change that’ll help sales of sedans.” Subaru's entry-level Impreza helps bring first-buyers in and performance models like the WRX/STI and BRZ draw in customers in their late 20s and early 30s. Still, Subaru's car lineup is taking it on the chin. Here are the sales numbers through April, Impreza: 22,287 (Down 16.3% YTD) Legacy: 14,730 (Down 13.9% YTD) WRX/STI: 9,854 (Down 8.2% YTD) BRZ: 1,286 (Down 10.1% YTD) Their crossover lineup is doing slightly better. Again, here are the sales numbers through April, Crosstrek: 45,728 (Up 66.6% YTD) Outback: 58,205 (Up 2% YTD) Forester: 50,783 (Down 9.7% YTD) Source: Motor Trend View full article

One of the key materials used in electric car batteries is cobalt. But there are growing concerns that the supply of cobalt is getting scarce as more and more automakers begin building electric cars. A new report from Bloomberg New Energy Finance says cobalt shortages are expected to happen earlier than previously forecast. This issue possibly brings a big challenge to the rollout of electric vehicles over the next five to seven years. "The long lead time to bring on new mines and the concentration of cobalt reserves in the Democratic Republic of the Congo mean there is a real possibility of supply shocks in the early 2020s," analysts from BNEF wrote. "If capacity does not grow as planned, cobalt prices could continue to spike and there could be a major cobalt shortage. This would have serious implications on the electric vehicle market." The price of cobalt has tripled within the past two years as more automakers begin building electric vehicles. Peter Deneen, the managing director at consultancy EV-Metals Resources Group said in an email that the market price for cobalt has risen in the "prospect of supply constraints". But the price doesn't include the potential risk of political upheaval in the Democratic Republic of the Congo - accounts for more than two-thirds of mined cobalt. Concerns have automakers accelerating development of batteries that have smaller amounts of cobalt. Chinese automaker BYD is expected to introduce batteries that have a nickel-manganese-cobalt ratio of 8:1:1 by the end of this year. BMW is expected to follow in 2021 with a similar ratio. According to BNEF's report, this chemistry will account for 57 percent of EV batteries by 2030. There is also the idea of recycling batteries that could provide 100,000 metric tons of cobalt a year by 2030. But the amount would have to mean all batteries from consumer electronics are recycled. Currently, the recycling rates around between 25 to 50 percent according to the report. Source: Bloomberg via Automotive News (Subscription Required) View full article

Before the start of this year's Detroit Auto Show, Ford held a press conference revealing new models such as the new Bullitt Mustang and Ranger. But they also teased a new electric crossover wearing an iconic name - Mach 1. The only details provided by Ford is that it would provide a range of 300 miles and launch in 2020. A new report from Autocar has some possible new details on the vehicle. The Mach 1 crossover currently has the codename of CX430 and will likely have some design cues inspired by the Mustang. Underpinning the model will be Ford's C2 platform. Currently, this platform is being used for the next-generation Focus and Escape crossover. The Mach 1 is part of Ford's plan to launch 16 electric vehicles by 2022. Source: Autocar View full article

While the spotlight has been on crossovers and their upcoming EV, Jaguar is still committed to building sports cars. “The F-Type has been a huge success. We love sports cars – and I use the plural quite deliberately. Whether that is delivered by a body variant or something else remains to be seen, but for now let’s just say that the body type is very important for us,” said Hanno Kirner, the person overseeing product strategy at Jaguar Land Rover. Emphasis mine. Jaguar only has one sports car at the moment - the F-Type. But according to Autocar, a second coupe being the successor to the XK (departed Jaguar's lineup in 2014). Some of their evidence comes from comments made by Jaguar’s head of design, Ian Callum last year. “I want a two-seater [the F-Type] and a 2+2. We’re working on something now. There’s nothing approved, but we instigate in design.” Reportedly, Callum's team completed a design concept for an XK replacement but was scrapped when Jaguar killed the XK. Autocar says this new successor to the XK isn't expected until after 2021. Part of this comes down to a new modular platform that is currently being worked on and will debut on the next-generation F-Type - due in 2019. This new platform is reportedly flexible enough to do a 2+2 coupe. Jaguar's Ingenium engine family will provide power for both models and expect some hot versions, including an SVR variant down the road. There is also talk about electrification, but that appears to be a long way out. Source: Autocar View full article