William Maley

With sales of new vehicles slowing down, automakers find themselves making tough decisions in terms of production and jobs. Later this week, General Motors will temporally shut down their Delta Twp, MI plant (home to Buick Enclave and Chevrolet Traverse) for a month to retool to make way for the next-generation models. When production begins back up on June 12th, there could be more than 600 workers without a job due to the third shift being cut. The Lansing State Journal reports that back in March, close to 1,100 workers were possibly going to be laid off. Workers were notified about this via a WARN notice (an advisory that is required to be sent out to workers under Michigan law). "At this point, we anticipate approximately half the number of people reported in the WARN notice to be impacted by the shift reduction," said Erin Davis, GM's Lansing spokeswoman. Davis didn't give an explanation as to why GM cut down on the number of layoffs. Of the 600-plus workers being laid off, 500 could be brought back in the first-quarter of 2018 when production of the Enclave and Traverse is expected to be fully running explained Davis. Source: Lansing State Journal via Detroit Free Press View full article

Usually, an automaker will announce they are ending production of a certain model. BMW didn't do that when it stopped production of the 6-Series coupe back in February. Road & Track got confirmation about this change from a BMW spokesperson. No reason was given as to why production of the coupe ended, but it is a safe bet that low sales played a role in this decision. This only adds fuel to the fire about reports that BMW is working on an 8-Series coupe. Our last report back in October said the company was planning to launch the 8-Series in late 2018 with the coupe. A convertible and V12 would follow sometime thereafter. Because of this, the 6-Series coupe and convertible would not be replaced. Source: Road & Track View full article

Here is a paradox for you: Automakers have been increasing the number of safety features in their vehicles to help protect or avoid a crash. But this has also brought an unforeseen consquence; crash your vehicle and it is more likely that your insurance company will total it. That's according to a story from Automotive News who spoke with Bob Tschippert, senior vice president of Dallas-based underwriter Risk Theory. Tschippert explained that all of these new features has increased the costs of repairing a vehicle, thus causing the chance of an insurance company totaling vehicle to rise. "In the past, if you had a front-end collision, you had damage to the engine or the front end. But now, with the number of airbags that can run from $1,000 up to $4,000 and all the sensors up front, you're seeing more totals," said Tschippert. Throwing a wrench into this is the gargantuan Takata airbag recall. The backlog of vehicles needing replacement airbags might make it more likely for an insurance company to total a vehicle with Takata airbags in an effort to reduce the backlog. Other factors include an increase in the amount people drive and the issue of distracted driving. If there is a winner with this increased trend in totaling, it has to be salvage auctions. Insurance Auto Auctions Inc., announced back in March that it would be expanding some of their largest auctions in seven states. Source: Automotive News (Subscription Required) View full article

Ever since the Volkswagen diesel emission scandal broke, the fuel has been demonized by the media. governments, and even automakers. But someone is standing up for diesel. Speaking with Autocar, Jaguar Land Rover boss Ralf Speth said the company would be ramping up efforts on promoting modern diesel vehicles. “The latest diesel technology is really such a step in emissions, performance, particulates; it’s better for the environment when compared to [an equivalent] petrol. Diesel has to – needs to – have a future,” said Speth. Speth tells the publication that the issue of diesel isn't just for the automotive industry, but the entire transport industry. Diesel is the primary fuel for commercial fleets such as buses and semi-trucks, which contribute more to the overall pollution problem. He said, "the complete automotive industry needs diesel to fulfill legislative requirements”. Not helping matters is the public perception of diesel vehicles has taken a huge hit. Speth said some of this can be laid at the hands of the media as they have exacerbated certain misconceptions by combining images of old diesel vehicles with sooty black smoke coming out of the tailpipe with modern vehicles. “Anyone can see the black smoke coming out of old diesels is bad. We need to replace them with newer ones.” Speth also lays blame at Volkswagen for kicking off this current mess. “This kind of manipulation software is not acceptable. Unfortunately, the whole automotive industry suffers, not just Volkswagen,” said Speth. “Nobody believes the automotive industry anymore. They see us as offenders and not giving the right information. We have to show our technology is the best you can buy, to reduce the damage to health and the environment.” Source: Autocar View full article

You would think the stigma of the diesel emission scandal would keep people away from picking up a fixed Volkswagen TDI model, but you would be wrong. Reuters notes that in April, 12 percent of Volkswagen's sales were for TDI models (about 3,196 vehicles). This is quite impressive when you take into consideration that Volkswagen was only given the go-ahead to sell TDI models with the fix back in mid-April. But we have to wonder if this percentage would be the same if Volkswagen didn't put some enticing incentives on TDI vehicles. As we reported last month, Volkswagen is offering either 0% APR for up to 72 months and $5,000 cash bonus if you decide to buy or an $8,500 cash bonus if you lease. Source: Reuters View full article

It is no secret that Bentley CEO Wolfgang Durheimer has his eye on adding a few more Bentayga variants. As we reported back in December, Bentley is considering a coupe-styled variant, long-wheelbase model, and even a high-performance version. If approved, these models could arrive in 2019 - the time when Bentley is planning to do a facelift for Bentayga. But why is Durheimer so interested in adding more variants? Speaking with Autocar, he explained the reason was to stay one step ahead of competitors. “Derivatives are important to us because you have to be the newest kid in town for customers,” said Durheimer. “We will see a large number of competitors [in this segment] in the future. They are all working on their luxury SUVs. The customers that are buying in this market are keen to have the latest design out there.” The competitors include Rolls-Royce's upcoming Cullinan, Lamborghini Urus, and Audi Q8. It should be noted that a decision on adding more variants to the Bentayga lineup has still not been made. Source: Autocar View full article

Tesla held their first quarter earnings call yesterday. The company reported revenue in the quarter that more than doubled and that they are on track on getting the Model 3 in production in July. But this was overshadowed by some comments made by CEO Elon Musk. "We have seen some impact of Model S orders as a function of people being confused" that Model 3 is the upgrade to Model S, Musk said on a conference call. Yes, it seems some of Tesla's prospective buyers believe the new Model 3 - the upcoming entry-level model - is the replacement for the Model S. This misconception has likely risen as Tesla has been promoting this vehicle since last July. Tesla's worry is that this misconception will draw people away from the Model S. "We want to be super clear that Model 3 is not version three of our car. Model 3 is essentially a smaller, more affordable version of the Model S with fewer features," said Musk. "The Model S will be better than Model 3. As it should be, as it's a more expensive car." Sadly, customer deposits in the first quarter don't reflect that. Deposits on the Model S and X dropped 7 percent. Source: Reuters View full article

At the moment, no. That could change in the next year or two.

Before the 2018 GMC Terrain hits dealers this summer, the brand has announced pricing for their small crossover. The base Terrain SL FWD will set you back $25,970 (includes a $975 destination charge), or about $1,900 more than the equivalent 2017 model. SL models come with a proximity key with push-button start, a leather-wrapped steering wheel, and LED taillights. If you want all-wheel drive, you'll need to step up to the SLE which starts at $30,545. Opting for front-wheel drive on the SLE drops the price to $28,795. Moving up to the SLE also brings the 1.6L turbodiesel as an option. This will set you back $32,565 (FWD) and $34,315 (AWD). SLT models which add heated front seats and an upgraded 8-inch infotainment screen begin at $32,295 (FWD) and $34,045 (AWD). The Terrain Denali kicks off at $38,495 (FWD) and $40,245 (AWD). For the price, it comes with a 2.0L turbo-four offering 252 horsepower, 19-inch wheels, LED headlights, navigation, 7-speaker Bose sound system, heated steering wheel, and a hands-free power tailgate. Source: GMC Press Release is on Page 2 2018 GMC Terrain Starts at $25,970 Premium compact SUV offers more value with new design, more premium features DETROIT — Pricing for the all-new 2018 Terrain will start at an MSRP of $25,970[1] when it goes on sale this summer, GMC announced today. The all-new Terrain offers greater refinement and versatility to adapt to customers’ unique needs, and it’s packed with more available features and advanced safety technologies than ever before. Three all-new turbocharged engines, leading with a 2.0L at launch — followed later with a 1.5L and an available 1.6L turbo-diesel — provide more choices when it comes to performance, efficiency and capability. “Terrain helped define the premium compact SUV segment and the all-new 2018 model elevates it with a stronger roster of standard and available features,” said Duncan Aldred, vice president of Global GMC. “GMC’s proven SUV experience makes it a more compelling choice than ever, with a strong blend of design, functionality and engineering excellence.” The all-new GMC Terrain provides great value in packaging with a host of standard premium features, including a new 170-hp, 1.5L turbo engine paired with a new nine-speed automatic transmission; driver-controllable Traction Select system; signature LED daytime running lamps and taillamps; leather-wrapped steering wheel; flat-folding front passenger seat; and keyless open and start. The Terrain Denali raises the bar even further to add a standard 252-hp, 2.0L turbo engine; 19-inch ultra-bright machined aluminum wheels; LED headlamps; heated leather-wrapped steering wheel; hands-free power programmable liftgate; an 8-inch diagonal infotainment system with navigation; Bose premium seven-speaker audio system; and a suite of standard safety features that includes: Side Blind Zone Alert with Lane Change Alert Rear Cross Traffic Alert Rear Park Assist Safety Alert Seat Terrain SL and SLE Starting MSRPs Terrain SL FWD — $25,970 Terrain SLE FWD — $28,795 Terrain SLE Diesel FWD — $32,565 Terrain SLE AWD — $30,545 Terrain SLE Diesel AWD — $34,315 Terrain SLT Starting MSRPs Terrain SLT FWD — $32,295 Terrain SLT Diesel FWD — $35,140 Terrain SLT AWD — $34,045 Terrain SLT Diesel AWD — $36,890 Terrain Denali Starting MSRPs Terrain Denali FWD — $38,495 Terrain Denali AWD — $40,245 View full article

April's auto sales are one most automakers would like to pretend never happen due to big declines. But if there is a silver lining to April sales, it has to go to small sports cars. Automotive News ran the numbers and found that sales of small sports cars rose 3.4 percent so far this year. Contrast this with 12 percent drop in overall demand for cars. The big winner in this group was the Mazda MX-5 Miata with sales up 35 percent so far this year. Sales in April declined slightly from March (1,319 vs. 1,345 units), but rose sharply when compared to January (929) and February (1,108). Other models saw noticeable increases: Fiat 124 Spider saw its sales rise from 240 in January to 465 in April BMW's Z4 rose 42 percent so far this year (though it should be noted this model went out of production last August) Toyota 86 saw a small rise in overall sales Jaguar F-Type posted its best monthly sales of 406 units Source: Automotive News (Subscription Required) View full article

Whenever the Corvette plant closes it doors for public tours for a certain amount of time, it usually means some big change is coming to the model. The Bowling Green Daily News reports that starting next month, GM will suspend plant tours for 18 months. National Corvette Museum Marketing and Communications Manager, Katie Frassinelli tells the paper the suspension is for a reconfiguration of the assembly line and a new paint shop. “The new paint shop at the plant has to be tied into the existing assembly line. The old paint shop is on the opposite side of the plant,” said Frassinelli. It should be noted this is the longest time that the plant tour has been suspended. Unsurprisingly, this announcement has caused many to wonder if the change is somehow related to the long-rumored mid-engined Corvette. Speculation has it that the model will debut at next year's Detroit Auto Show. Source: Bowling Green Daily News View full article

JAGUAR LAND ROVER REPORTS US SALES FOR APRIL 2017 Best ever Jaguar Land Rover U.S. April sales month Best ever April sales month for Jaguar F-TYPE Jaguar F-PACE, winner of two 2017 World Car of the Year Awards, volume leader for the month Best ever April sales month for Land Rover Discovery Sport Second Best Land Rover April sales month driven by strong performance of Range Rover Evoque (MAHWAH, NJ) – May 2, 2017 -- Jaguar Land Rover North America, today reported April 2017 U.S. sales: Jaguar sales were 3,230 units, a 197 percent increase from 1,087 units in April 2016; Land Rover sales increased slightly to 5,211 units; Jaguar Land Rover April U.S. sales for both brands hit 8,441 units, a 35 percent increase from 6,275 units in April 2016; making it the best ever Jaguar Land Rover April sales month (previous best was 8,216 units in 2002). Year to date, Jaguar Land Rover is up 24 percent in the United States. “We are thrilled to have had a record-setting April sales month for Jaguar Land Rover based on a strong product offering and our dedicated retailer network, said Joe Eberhardt, President and CEO, Jaguar Land Rover North America, LLC. “The Jaguar F-TYPE and Land Rover Discovery Sport had an outstanding sales month and continue to contribute to the brands’ growing sales momentum.” U.S. BRAND HIGHLIGHTS Land Rover For the month of April, Land Rover sales hit 5,211 units sold, the second best ever April retail month for the brand, despite the runout of the Land Rover LR4 (April 2014 holds the record for best sales month ever). The new Discovery seven-passenger SUV goes on sale this spring. The Discovery Sport had its best ever April sales month with 928 units sold. For the month of April, the Range Rover Sport was the volume leader hitting 1,785 units sold. Range Rover hit 1,437 sales, up 26 percent. The Range Rover Evoque hit 1,030 sales, up 95 percent. The all-new Range Rover Velar, which was introduced in the U.S. at the New York Auto Show, goes on sale later this summer. Jaguar For the month of April, Jaguar sales were 3,230 units, a 197 percent increase from 1,087 units in April 2016; making it the best April Jaguar sales month since 2004. The Jaguar F-PACE hit 1,377 units sold, making it the brand’s volume leader for the month. The Jaguar F-PACE recently won two titles at the 2017 World Car Awards – World Car of the Year and World Car Design of the Year. The XE hit 742 units sold. The Jaguar F-TYPE had its best April sales month ever with 406 units sold. To mark the introduction of the new 18 MY F-TYPE range, at this years’ New York Auto Show Jaguar debuted an exclusive 400 SPORT special edition model.

Hyundai Motor America Reports Best Tucson Sales Month In Company History April Sales of 63,050 Vehicles; Up 1 Percent Overall Best Combined CUV/SUV April Ever Elantra and Sonata Also See Increases in April FOUNTAIN VALLEY, Calif., May 2, 2017 /PRNewswire/ -- Hyundai Motor America today set an all-time mark for monthly Tucson sales and along with increased demand for Elantra, Sonata and the Santa Fe family led to sales of 63,050 vehicles in April, an overall increase of 1 percent compared with April 2016. "Consumers are finding that within the heart of the Hyundai lineup there is a vehicle ideally suited for their needs and lifestyles," said Derrick Hatami, vice president of national sales, Hyundai Motor America. "Hyundai's car-to-CUV/SUV mix is improving and our 'Better Than Ever Sales' event is increasing consumer demand for Hyundai cars." HYUNDAI BRAND HIGHLIGHTS Tucson up 29 percent with 9,952 vehicles sold Santa Fe family sales totaled 9,480, up 33 percent Elantra sales totaled 16,346; up 32 percent Sonata sales up 7 percent with 16,294 vehicles sold; 2018 Sonata being pulled ahead to meet demand All-new Hyundai IONIQ gaining momentum with increased dealer inventory Hyundai consumer consideration and brand opinion reach all-time highs in Q1 GENESIS BRAND HIGHLIGHTS "As we continue to focus on building the Genesis brand, we've achieved significant improvements in unaided awareness, consumer opinion, and proud-to-own data in the first quarter of the year," said Erwin Raphael, general manager of Genesis in the U.S. market. "We've also received many positive responses from both consumers and media who have driven the G80 and G90 and we are continuing to grow our position in the luxury car market." SALES BY BRAND APRIL/2017 APRIL/2016 CY/2017 CY/2016 HYUNDAI 61,651 62,213 225,288 235,543 GENESIS 1,399 0 6,554 0 TOTAL 63,050 62,213 231,842 235,543 HYUNDAI MODELS CARLINE APRIL/2017 APRIL/2016 CY/2017 CY/2016 ACCENT 6,951 12,933 21,714 30,759 SONATA 16,294 15,211 54,163 76,668 ELANTRA 16,346 12,361 70,548 51,724 SANTA FE 9,480 7,150 37,582 24,367 AZERA 273 510 1,225 1,865 TUCSON 9,952 7,718 31,107 28,102 VELOSTER 923 2,792 6,471 9,258 IONIQ 1,316 0 1,648 0 GENESIS 116 3,374 814 12,019 EQUUS 0 164 16 781 GENESIS MODELS CARLINE APRIL/2017 APRIL/2016 CY/2017 CY/2016 G80 1,083 0 5,035 0 G90 316 0 1,519 0

Volvo Announces April Sales ROCKLEIGH, N.J. (May 2, 2017) - Volvo Car USA, LLC, (VCUSA) reported U.S. sales of 7,121 vehicles for the month of April, a 15.4 percent increase versus April 2016. The top seller for the month was the XC90 with 2,349 vehicles sold, followed by the XC60 with 2,046 vehicles sold, a 40.5 percent increase versus April 2016. “We continue to face strong global demand on XC90,” said Lex Kerssemakers, President and CEO, Volvo Car USA. “We are just starting to see the first signs of improved availability in the US market, which will progressively increase throughout the year.” Volvo is implementing a sweeping $11 billion transformation plan that has involved the development of its own modular vehicle architecture, a new engine range, global manufacturing capability, a completely renewed product range and world leading developments in safety, autonomous driving and connectivity. Models April 2017 April 2016 % Year To Date 2017 Year To Date 2016 % S60 982 859 14.3 % 3,890 3,347 16.2 % S60 CC 20 62 -67.7 % 60 209 -71.3 % S80 0 47 - - 193 - S80 2 0 100.0 % 5 0 100.0 % S90 484 0 100.0 % 1,525 0 100.0 % V60 401 213 88.3 % 962 940 2.3 % V60 CC 349 146 139.0 % 786 547 43.7 % V90 CC 478 0 100.0 % 613 0 100.0 % XC60 2,046 1,456 40.5 % 5,782 5,102 13.3 % XC70 10 377 -97.3 % 60 1,336 -95.5 % All-New XC90 2,349 3,009 -21.9 % 6,917 10,856 -36.3 % Total 7,121 6,169 15.4 % 20,600 22,530 -8.6 % * I, II, III etc shows which generation the car model belongs to.

MITSUBISHI MOTORS REPORTS APRIL 2017 SALES Outlander Sport posts its best ever April sales with 2,688 units sold CUV sales continue to lead the way with year to date sales of 21,857 up 15.9 percent over 2016 Calendar year-to-date sales are 37,522 up 7.6 percent Mitsubishi Motors North America, Inc. (MMNA) reported April 2017 sales of 8,375. Mitsubishi's compact CUV Outlander Sport continued its strong sales streak with its best April sales month ever, selling 2,688 up 2.8 percent over April 2016. Total 2017 calendar-year sales are up 7.6 percent compared to last year at this time with 37,522 units sold. April YTD 2017 2016 2017 2016 i‐MiEV 2 6 6 14 Mirage 2136 3302 9606 9534 Lancer 832 1023 6053 6477 Outlander Sport 2688 2614 9552 10312 Outlander 2717 2729 12305 8549 Total 8375 9674 37522 34886