William Maley

General Motors seems being in a cutting mood as it drives to improve its profit margins and stock price. Last week saw the sale of Opel and Vauxhall to PSA Group and it's only the beginning said GM CEO Mary Barra. Automotive News reports that GM is considering reducing investments in North American cars and "select" international markets according to a chart that was shared during a conference call with analysts last week. The chart says these two earned a spot on the chopping block due to low profit potential and weak strength in franchises. "There's a little bit more work that we're doing in the international markets. Our overall philosophy is that every country, every market segment has to earn its cost of capital," Barra said on the conference call. Barra and GM President Dan Ammann declined to go into details about these plans. GM has already made significant changes in terms of their international operations by ending or reducing operations Australia, Indonesia, Russia, and Thailand. The automaker has also scaled back plans in India. The comments made during the call suggest more cuts could take place here and possibly elsewhere. As for 'reducing investments in North American cars', this likely means GM is taking a hard look at various segments in passenger car segment. With consumers trending towards utility vehicles and trucks, sales of passenger cars have been falling precipitously. As of March 1st, dealers had four month's worth of inventory of cars, compared to an 81-day supply for light trucks and less than 60-days for full-size SUVs. GM could walk away from certain segments such as compacts or full-size sedans, or delay investments in certain models. These moves will allow GM to funnel money into models that make more money, and returning capital to shareholders. "That's an immediate opportunity for us to reward shareholders without changing the risk profile of the company or our ability to manage through a downturn," GM CFO Chuck Stevens said. Analysts are mixed on GM's plans. "It takes a lot of discipline to shift away from a volume-is-king kind of mentality," she said. "In the end, that's going to make a better GM -- a longer-standing company that's not only more profitable but more relevant," said Rebecca Lindland, a senior analyst with Kelley Blue Book to Automotive News. John Murphy, an analyst with Bank of America Merrill Lynch isn't so sure about this plan. "It appears that GM's recent decision-making has become much more short-term-focused and, in our opinion, could create challenges for the company in the coming years," Murphy wrote in a report. Source: Automotive News (Subscription Required) View full article

In various reports about Cadillac's upcoming small crossover, we have been calling it the XT3. But recently at Geneva Motor Show, Cadillac president Johan de Nysschen revealed the actual name. “A new compact crossover called XT4 will debut in 2018 in the US and subsequently in Europe, with an entirely new series of efficient and powerful engines. Starting with the launch of XT4, a new Cadillac will be brought to market every six months, a total of five carlines in the space of two years,” said de Nysschen. It is expected that the XT4 will use the bones of the new Chevrolet Equinox and GMC Terrain. Power will come from a 2.0L turbo-four paired with a nine-speed automatic Source: Cadillac View full article

Here is the 15 best selling models in Australia for February via CarAdvice: TOP-SELLING MODELS FOR FEBRUARY 2017 SALES Toyota Corolla 3392 Toyota HiLux 3386 Mazda 3 3143 Ford Ranger 2931 Hyundai i30 2003 Mitsubishi Triton 1990 Mazda CX-5 (SUV) 1933 Toyota RAV4 (SUV) 1726 Hyundai Tucson (SUV) 1596 Holden Commodore 1566 Kia Cerato 1513 Nissan X-Trail (SUV) 1500 Toyota Camry 1473 Mazda CX-3 (SUV) 1468 Toyota Prado (SUV) 1320 It's mostly utes and SUVs (with the odd compact here and there) thrown in. I think GM is thinking of only selling a small number of Camaros to begin with and then increase if there is more demand for it.

The departure of the current Holden Commodore means Australians will not get their fill of V8 muscle. But it seems help could be on the way from America. A new report from Wheels says the Camaro will be heading down under to give the Ford Mustang some much needed competition. But don't expect to see the current Camaro make the trip. Wheels says it will be the next-generation model due in 2021 that will do battle. This is due to the engineering work needed to do a right-hand drive version. We know that that the Camaro team has been watching the Australian marketplace since the Mustang went on sale to see how it would do. Since the Mustang was introduced in Australia last year, 6,000 models have been sold. This is likely one of the key reasons GM decided to go forward with these plans. It should be noted there is a fail-safe to these plans. If the Australian market loses interest in rear-drive, V8 muscle cars, GM can pull the plug on this project as late as 2019. Source: Wheels View full article

Today at U.S. District Court in Detroit, Volkswagen pleaded guilty on three felony charges relating to the diesel emission scandal as part of a plea agreement. The three felonies are conspiracy, obstruction of justice, and introducing imported merchandise into the United States by means of false statements. "Your honor, VW AG is pleading guilty to all three counts because it is guilty on all three counts," said Volkswagen general counsel Manfred Doess at the hearing. As part of the plea deal, Volkswagen will pay $4.3 billion in penalties and have an independent monitor to oversee U.S. operations over the next three years. The deal also requires Volkswagen to continue cooperating with federal and state investigators. A sentencing hearing has been scheduled for April 21st. Source: Automotive News (Subscription Required), Reuters View full article

Jeep is planning to offer a hybrid version of the next Wrangler, but it will be some time before it comes to fruition. Speaking with Auto Express, Jeep head Mike Manley said there are plans to offer some sort hybridisation, "We have continued our studies on hybridisation for the Wrangler, and it’s a balance for us. Obviously there are loads of different hybrid technologies, from mild to 48v through to full battery-electric," said Manley. But don't expect Jeep to do a full-EV version of the next Wrangler. “For the Wrangler you need to strike the right balance; we don’t want to do something that will leave you stranded on a hillside. So for me, full battery EV is not a great fit. But hybridisation works well with the brand because of the attributes that come with electric motors – not just the torque, but also the control.” If we were to take a guess what the hybrid powertrain could look like, we're thinking a turbo-four paired up with an electric motor. We would expect to see a hybrid Wrangler sometime after 2020. Source: Auto Express View full article

Holden was relying on Opel to help supply its upcoming lineup with models such as the Astra and Insignia rebadged as the Commodore. But with the sale of Opel and Vauxhall to PSA Group, the future of Holden's lineup hangs in the balance. But GM is still committed to the Australian brand and the sale of Opel should not have any impact in the near future according to GM president Dan Ammann. “What I want to emphasise is we are 100 per cent committed to the business in Australia and New Zealand, and we have a lot of exciting things in the pipeline. It’s going to be a really good period of time for the business down there,” said Ammann. "As a lot of you know there are a lot of people in the business at General Motors that have a lot of history and linkage to Holden and there's nothing we want to see more than seeing the business prosper down there. So we're really committed to making the business work down there." For the time being, Holden will be getting the Astra and Commodore from Opel as part of the deal between GM and PSA. Ammann did admit that decisions concerning long-term product plans for Holden are up in the air. "So no specific decisions have been taken on that front. We have, I'd say as a result of yesterday's announcement, more not less opportunities going forward," said Ammann. "Clearly the current models that are just launching will run through their full lifecycle and what we do after that is yet to be determined." Source: CarAdvice , Drive.com.au, Wheels View full article

Toyota appears to be building out their sports car lineup with the 86 and the rumored Supra coupe. There is now talk of third sports that would mark the return of the 'Three Brothers'; MR2, Celica, and Supra. Evo reports that Tetsuya Tada, chief engineer of the Toyota 86 and head of Gazoo Racing revealed that a spiritual successor to the MR2 is in the works. The successor would act as the starting point for the 'three brothers,' with the 86 serving as the successor to the Celica and the Supra as the top dog. Tada said the company hopes to have the trio in production together, "as soon as possible." Details are slim, but Evo expects the model to be smaller and lighter than the 86 coupe. There is the possibility of a hybrid powertrain, using tech from Toyota's Le Mans prototype race car. Source: Evo View full article

Welcome the Twilight Zone, here is your black sweater.

You have to admire Fiat Chrysler Automobiles' CEO Sergio Marchionne for still hanging onto the dream of FCA and General Motors merging, despite being told repeatedly that isn't going to happen. At the Geneva Motor Show this week, Marchionne put out there that he is still interested in getting together with GM. "I never close any doors. I may shamelessly try and knock again ... on the GM door or any door if I thought it was a good thing for the business. Absolutely, without even blinking. The desirability of GM as a potential merger candidate remains untouched," said Marchionne. Unsurprisingly, GM shot down Marchionne's dreams. "We weren't interested before and we're even less interested now," said GM President Dan Ammann. Marchionne isn't one to give up however, he has a plan B: Volkswagen. As he told Bloomberg, with PSA Group becoming the second largest automaker in Europe with the acquisition of Opel/Vauxhall, this could put Volkswagen in a vulnerable position. He sees the company possibly looking for a partner. “I have no doubt that at the relevant time VW may show up and have a chat” about a merger, said Marchionne. Volkswagen CEO Matthias Müller slapped down that idea when asked. “We are not ready for talks about anything. I haven’t seen Marchionne for months,” said Müller. “We have other problems.” Source: Bloomberg , Reuters, (2) View full article

Later this month, the 2017 Mazda CX-5 will begin arriving at dealers in the U.S. Before this happens, Mazda has revealed the pricing for the upcoming crossover. The base CX-5 Sport will carry a price tag of $24,985 (includes a $940 destination charge). All CX-5s will come equipped with a 2.5L SkyActiv-G four-cylinder and six-speed automatic (sorry, no manual transmission is on offer for this generation). The 2.5 produces 187 horsepower and 185 pound-feet of torque. Front-wheel drive comes standard, while Mazda's i-ACTIV all-wheel drive system adds $1,300 to the base price. The CX-5 Sport comes decently equipped with 17-inch alloy wheels, LED headlights, Smart City Brake Support, 7-inch color touchscreen with Mazda Connect, push-button start, and power accessories. The CX-5 Touring ($26,855) adds blind-spot monitoring with rear-cross traffic alert, dual-zone climate control, leatherette upholstery, heated front seats, six-way power driver's seat, keyless entry, and auto-leveling LED headlights. Wrapping up the CX-5 lineup is the Grand Touring ($30,335). This model features full LED lighting outside, 19-inch alloy wheels, leather seats, eight-way power driver's seat with lumbar, rain-sensing wipers, and heated exterior mirrors. Options for the CX-5 include navigation, Bose audio system, heated steering wheel, heated rear seats, radar cruise control, lane departure warning, and automatic high beams. Source: Mazda Press Release is on Page 2 2017 MAZDA CX-5 PRICED FROM MSRP OF $24,045 Mazda’s Best-Selling Compact Crossover SUV a Remarkable Value with Segment-Exclusive Standard and Available Technologies IRVINE, Calif. (March 8, 2017) – The previous Mazda CX-5 ended its tenure as a compact crossover SUV segment favorite, winning the praise of automotive critics and the hearts of consumers. CX-5 became Mazda’s best-selling vehicle in the U.S. Its successor, the all-new 2017 CX-5, will arrive in late March at dealerships nationwide with a starting MSRP of $24,045, building on the momentum that has made the model an unequivocal hit. The 2017 CX-5 hits a sweet spot in the compact crossover SUV segment for its refinement, quality, craftsmanship, design, efficiency, safety and dynamics among a long list of other reasons. No matter which trim level is selected, CX-5 also represents a remarkable value. The entry CX-5 Sport trim features 17-inch alloy wheels, black cloth-upholstered seats, cruise control, air conditioning, power windows, power mirrors, pushbutton starter, LED headlights, variable intermittent windshield wipers, carpeted floor mats, a 40:20:40 split-folding rear seat, Smart City Brake Support and power door locks. Additionally, CX-5 comes standard with MAZDA CONNECTTM, which pairs a 7-inch color touchscreen- and Commander-control-knob-operated infotainment display that incorporates AM/FM/HD radio, vehicle diagnostics, a backup camera, Bluetooth phone and audio integration and two USB ports for phone connectivity and charging. CX-5 Touring adds a six-way power driver’s seat, leatherette seating surfaces with Lux Suede inserts, Blind Spot Monitoring with Rear Cross-Traffic Alert, heated front seats, rear privacy glass, auto-leveling LED headlights, a six-speaker audio system, Mazda Advanced Keyless Entry, leather-wrapped steering wheel and shifter handle, illuminated vanity mirrors, a rear center armrest, rear HVAC vents, dual-zone climate control, rear USB ports and a reclining rear bench seat. Further building on CX-5 Touring is the Preferred Equipment Package, which includes a BOSE® 10-speaker audio system with CenterPoint 2 and AudioPilot 2, a power glass moonroof, power liftgate, navigation, auto-dimming mirrors with Homelink and auto on/off headlights. Customers can also opt for the Touring i-ACTIVSENSE Package on top of the Preferred Equipment Package, adding High Beam Control, Lane-Departure Warning, Lane-Keep Assist, Mazda Radar Cruise Control and Smart Brake Support. Adding greater levels of equipment yet is CX-5 Grand Touring, adopting black or parchment leather seating surfaces, 19-inch alloy wheels, eight-way power driver’s seat with power lumbar support, SiriusXM satellite radio, rain-sensing wipers and heated exterior mirrors. Other additions include Adaptive Front-lighting system, LED fog lights and LED tail lights. Finally, CX-5 Grand Touring’s Premium Package comes with a windshield-projected Active Driving Display with Traffic Sign Recognition, a power front passenger seat, heated rear outboard seats, heated steering wheel and windshield wiper de-icer. All models come standard with the SKYACTIV-G 2.5 engine and six-speed SKYACTIV-DRIVE automatic transmission. Front-wheel drive is standard, with Mazda’s predictive i-ACTIV all-wheel drive available on all trim levels. MSRP FOR ALL MODELS IS AS FOLLOWS: Model/Trim Package Front-Wheel Drive i-ACTIV AWD CX-5 Sport $24,045 $25,345 CX-5 Touring $25,915 $27,215 •Touring Preferred Equipment Package $780 $780 •Touring i-ACTIVSENSE Package $625 $625 CX-5 Grand Touring $29,395 $30,695 •Grand Touring Premium Package $1,830 $1,830 AVAILABLE PREMIUM PAINT COLORS: Soul Red Crystal $595 Machine Gray Metallic (CX-5 Touring and Grand Touring models only) $300 Snowflake White Pearl Mica $200 View full article

Subaru felt it was time to give the XV Crosstrek a makeover. The end result made its debut at the Geneva Motor Show as the XV (the U.S. version will be known as the Crosstrek). The big news for the XV/Crosstrek is Subaru's modular platform. First making its debut in the new Impreza, the new platform gives the XV a 70 percent increase in overall rigidity. Subaru says this helps give the XV improved driving dynamics and makes it much safer in the event of an accident. Subaru has also made the XV a bit more capable when it comes to the rough stuff by adding hill descent control and X-Mode that optimizes the engine, all-wheel drive system, and brakes to improve traction on slipperier surfaces like mud and snow. This is on top of a ground clearance of 8.6-inches. Power comes from a 2.0L four-cylinder with 154 horsepower and 145 pound-feet of torque. This is paired up with Subaru's Lineartronic CVT. There isn't a dramatic change to the XV's exterior aside from a revised front end that comes with a new grille and reshaped headlights. The interior is a different story as it features a revamped dashboard design with a 7 or 8-inch touchscreen, along with improved materials. The XV will come with Subaru's EyeSight safety system - pre-collision braking, adaptive cruise control, and lane-keep assist - as standard. The Crosstrek in North America will get this an option. Subaru will begin sales of the XV in Europe later this year. We'll learn about when we get our hands on the Crosstrek next month at the New York Auto Show. Source: Subaru Press Release is on Page 2 WORLD PREMIERE OF ALL-NEW SUBARU XV AT 2017 GENEVA INTERNATIONAL MOTOR SHOW Mar 7, 2017 Built on Subaru’s new Global Platform - which significantly enhances refinement, safety, ride comfort, and agility. A newly-developed 2.0-litre Direct Injection Boxer engine and Symmetrical All-Wheel Drive are standard on all models. Equipped with X-MODE which enhances off road ability of Symmetrical All-Wheel Drive, offering increased SUV capability. XV’s rugged and sporty styling is influenced by Subaru’s DYNAMIC x SOLID design philosophy. Standard EyeSight driver assist technology delivers outstanding preventative safety. Subaru has unveiled the all-new XV at the 2017 Geneva International Motor Show. XV is a crossover which combines a compact body with SUV capability based on Subaru’s distinctive Symmetrical All-Wheel Drive system and rugged yet sporty design, offering versatility in both urban areas and the countryside. For the first re-design since launch in 2012, XV will be built on Subaru’s completely revamped Subaru Global Platform architecture, significantly enhancing the body and chassis rigidity and strength. The new Subaru XV also offers world-class collision safety and hazard avoidance performance, as well as more responsive handling and ride comfort while enhancing the Subaru XV’s unique design and off road capability. The model is the first strategic offering in Europe under the company’s Prominence 2020 mid-term management vision which delivers “enjoyment and peace of mind” for customers. Key Features of All-New Subaru XV XV’s unique design is filled with rugged and sporty character, incorporating the Subaru design philosophy DYNAMIC x SOLID. Functional enhancements have also been included with a high-quality interior and exterior finish. Exterior The Wide & Low stance provides a sporty impression and adds to the Subaru family look, from the hexagonal grille to the hawk-eye headlights. The design flows from the grille through to the rear, providing a united scheme. The grille design and matte black cladding on the bumper elude to XV’s rugged character and SUV functionality. The character line runs from front wheel arch to rear shoulder and rises energetically; adding dynamism to the side profile. The extended wheel arches suggest the intent and capability provided by Subaru Symmetrical All-Wheel Drive and is finished off with matte black cladding. The Wide & Low stance applied to the front design carries over to the rear combination lights. The shoulder silhouette with black roof spoiler are juxtaposed against the rugged matte black cladding on the rear bumper, playing up to XV’s versatile character. The new model also combines the Subaru performance essentials of superior aerodynamics and visibility with advanced styling. Newly designed alloy wheels embody the Subaru XV’s sporty, casual, and rugged character. New exterior colours “Cool Grey Khaki” and “Sunshine Orange” have been added, which contrast with the matte black cladding adding to XV’s active and functional image. Interior The body-hugging seats have been revised for improved quality and feature grey trim to enhance XV’s character. In the centre of the instrument panel is an 8.0-inch touchscreen display for the infotainment system, with smartphone connectivity. Detailed orange stitching on the instrument panel complements the cabin’s quality. In addition to enhanced interior design, signature Subaru attributes have been further strengthened; excellent all-round visibility, spacious cabin, and cargo room. Enhanced dynamic driving performance paired with off road capability All-new XV has been improved in several areas to achieve an enhanced dynamic feel. Steering and pedal feedback, vehicle response, noise and vibration have been refined to achieve a positive driver experience. XV’s impressive off road capability has also been enhanced with X-MODE. Body & Chassis The new platform dramatically increases rigidity throughout the body and chassis (70-100% increase over present models). Substantial improvements to the suspension system are incorporated, and help achieve a lower centre of gravity allowing precise steering control. Increased precision allows for superior straight line stability and cornering performance whilst maintaining 220mm ground clearance. Torsional rigidity has been improved by 70% over present models by optimising frame structure and joints. This distributes resonance and distortion throughout the body, reducing vibrations. Suspension mounts are more rigid, improving absorption without twisting the chassis and providing a smooth and comfortable drive. Body roll of the vehicle has been reduced by 50% compared to present models. The steering gear ratio has been modified from 14:1 to 13:1 compared to the previous model, offering superior drivability. Active Torque Vectoring enhances turning and steering performance. Electronic parking brake has been added for more convenience. All-Wheel Drive control In addition to Subaru’s unique Symmetrical All-Wheel Drive system, new XV is equipped with X-MODE. X-MODE is designed to increase drivability by optimising integrated control of the engine, All-Wheel Drive system and brakes to provide additional control when tyres slip and lose traction on a slippery road surface, including when descending hills. Engine 80% of the parts on the FB series 2.0-litre Direct Injection Boxer engine have been revamped compared to previous naturally aspirated engines. The new engine is lighter, delivering more power and improved fuel economy. The improved Lineartronic greatly enhances ratio coverage and lightness to boost acceleration performance and fuel economy. As well as employing full auto-step shift control, the Subaru XV features a 7-speed manual mode function for a more engaging driving experience. Engine and transmission noise and vibration are greatly reduced, for a more dynamic experience. Safety Subaru’s safety performance has continuously been highly rated by third-party organizations. The new Subaru XV has adopted technologies to further enhance its safety including the new platform and the advanced preventative safety system, to ensure XV will achieve high safety ratings. Active safety The new platform achieves a centre of gravity that is 5 mm lower than present models. Together with the major improvements in rigidity and the evolution of the suspension system, this lower centre of gravity offers outstanding hazard avoidance capabilities on a level with a high-performance sports car. Passive safety Impact energy absorption is improved by 40% over present models by using a frame structure that absorbs more energy and high-tensile steel plates. Preventive safety EyeSight, Subaru’s innovative and highly acclaimed driver assist technology, delivers extremely reliable preventive safety and assists drivers through features such as Pre-Collision Braking Control, Adaptive Cruise Control, and Lane Keep Assist function. The new High Beam Assist employs a monocular camera, automatically switching from high to low beam as per road conditions. Steering Responsive Headlights move the beam right or left whilst cornering or at junctions to illuminate the direction of travel. The Subaru XV uses two headlight controls for the first time, dramatically improving night-time visibility and the recognition capabilities of EyeSight. The Subaru Rear Vehicle Detection has been fitted, offering blind spot detection, lane change assistance and reversing assistance to enhance all-round preventive safety. View full article