William Maley

As more consumers head over to crossovers and SUVs, automakers find themselves making changes to their lineup. Case in point is Ford which is considering dropping some of their nameplates because of the change in demand. “Over time, there should be some pruning of the portfolio to support growth in other areas. Clearly we’re going to invest in growing the SUV portfolio. We certainly intend to have a strong car base as well; we don’t know where the market’s going to go. But there will be some pruning over time as there should be in a nameplate and portfolio,” said Joe Hinrichs, Ford president of the Americas. Ford's car sales are down 14 percent through November with sedans being the big losers. Fiesta: Down 26 percent year-to-date Focus: Down 17 percent YTD Taurus: Down 11 percent YTD Fusion: Down 10 percent YTD Hinrichs didn't say which nameplates could be cut, but mentioned that former popular vehicles such as the Ranger were dropped after demand fell. “If you look at our past, there’s been some nameplates that have dropped off and other nameplates have been added. Given where the market is going, the demands for capital investment and the regulatory changes coming at us, we’ll continue to always look at the total portfolio and see where’s segmentation going and where should we be phasing out,” said Hinrichs. We think the Taurus is one of the vehicles on the chopping block since sales of it have been falling for the past couple of years. Source: Automotive News (Subscription Required) View full article

Automakers go to great lengths to avoid being hit with the 25 percent chicken tax when they import trucks or vans into the U.S. Mercedes-Benz takes the cake for the most absurd method. For the past decade, Mercedes-Benz would build Sprinter vans fully in Germany before disassembling them and shipping the pieces to South Carolina. Workers in a small assembly building would put the vans back together. This method allowed Mercedes-Benz to claim the vans as "locally made". "I really couldn't believe it. To build up and tear down, that's really something that hurts me, personally. And the costs!" said Volker Mornhinweg, worldwide head of Mercedes-Benz Vans. Mornhinweg first learned about this back in 2010 and like us, found himself wondering 'WHY?!' Thankfully, Mornhinweg began working on making this process not seem like Rube Goldberg machine which will fully culminate with a new assembly plant in South Carolina that will be tasked with building the next-generation Sprinter, most likely in 2018. Source: Automotive News (Subscription Required) View full article

American criminal lawyers are in demand at Volkswagen. Bloomberg has learned from sources that various executives at the company are hiring lawyers as the Department of Justice begins sending out officials to Germany for meetings to gather evidence for possible criminal charges. Volkswagen has already agreed to a $16 billion settlement over the diesel emission scandal. But the Department of Justice is continuing their investigation into whether various Volkswagen executives knew about the cheating software installed on over 10 million diesel vehicles around the world. As we reported back in September, a Volkswagen engineer has pled guilty for being involved in the scandal. Volkswagen has long maintained that none of its executives knew about the software and that it was a rogue group of engineers that went forward with this decision. But as we have been reporting for the past year, various documents and emails that have been leaked out put serious doubts into this claim. It is unknown if this investigation involves former Volkswagen CEO Martin Winterkorn who stepped down shortly after the scandal broke. If the Department of Justice was to bring Volkswagen executives to court, they could be facing some roadblocks. Germany's constitution doesn’t allow citizens to be extradited outside the European Union. A source tells Bloomberg the Department of Justice is looking into possible ways to bring them to the U.S. Source: Bloomberg View full article

It has been a long time coming. But we knew sooner or later, we would get our first glimpse at the upcoming Opel/Vauxhall Insignia (also Buick Regal and Holden Commodore) minus the camo. That day has finally arrived as the Insignia sedan and Sport Tourer have been caught uncovered. The front end reminds us a lot of the current Mazda6 - a flat nose with a pentagonal grille and slim headlights. Along the side, there has been some sculpting along the lower part of the doors that add some sharpness. The back end features similar styling to the Buick LaCrosse with a similarly shaped trunklid and taillights that extend into the rear fenders. The Sport Tourer features a more distinctive character line and a steeply raked rear tailgate. Both models are the top-line OPC trim which means a number of sporty touches to the exterior, 20-inch wheels, large Brembo brakes, small spoiler, and dual exhaust tips. The second-generation Insignia is 2.1 inches longer and rides on a wheelbase that has been stretched 3.6 inches. This should help one of the key issues of the current Insignia and its brethren, a tight back seat. The new Insignia has also been lowered by 1.1 inches to give it a sportier stance. Motor1 reports that Opel and Vauxhall will reveal the next-generation Insignia later this month online, followed by a debut at the Geneva Motor Show in March. The Sports Tourer expected a few months later. Source: Motor1.com View full article

Every Chevrolet Bolt that will be rolling off the assembly line will lose General Motors close to $9,000 once they are sold. This seems like madness, but according to a report from Bloomberg, there is some method to it. Thanks to new regulations done by California Air Resources Board, automakers have to sell a certain amount of zero-emission vehicles if they want to sell other vehicles - primarily crossovers, SUVs, and trucks - in the state. These new regulations say by 2025, zero-emission vehicles need to make up 15.4 percent of the market. Since then, nine other states including New York have adopted these regulations. All told, these ten states make up 30 percent of the total U.S. auto market. Take for example Fiat Chrysler Automobiles. CEO Sergio Marchionne revealed a couple years back they take a hit of $14,000 on every Fiat 500e sold. But if they wanted to sell Ram pickups and Jeep SUVs in California, they need to take the hit. How does Bloomberg get the $9,000 figure? That's due to a source at General Motors who revealed the estimate is based on the Bolt's $37,500 base price. A GM spokesman declined to comment. If General Motors is able to sell enough Bolts, they'll be able to gather enough credits to not only sell other vehicles which will make up for the Bolt's loss, but also be able to sell extra credits to other automakers. Tesla has taken advantage of this to great effect. In the third quarter, Tesla made $139 million from selling credits. Source: Bloomberg View full article

To say we were slightly disappointed to find out that the U.S.-Spec Toyota C-HR would only come with a 2.0L four-cylinder producing 144 horsepower would be an understatement. The European-spec C-HR has the choice of either a turbocharged 1.2L four or a hybrid, but neither of these powertrains will be showing up in the U.S. Car and Driver spoke with the C-HR's chief engineer, Hiroyuki Koba to find out why. Koba didn't say why the turbocharged 1.2L would not come to the U.S., but we're guessing Toyota didn't want to put the effort in getting this engine certified for the U.S. Also, performance numbers between the 2.0L and turbo 1.2L are similar (11 seconds for the 2.0 to hit 60 mph, 11.1 seconds for the 1.2). As for the hybrid, Koba said the decision comes down to the market, not engineering. At the moment, Toyota doesn't see the demand for this model in the U.S. Koba did admit there is a possibility for a more powerful version of the C-HR, but quickly added there aren't plans for this at the moment. Source: Car and Driver View full article

When Ford introduced the next-generation Fiesta earlier this week, there was one model missing; the hot ST. This caused a number of people to wonder if there would be a new Fiesta ST. Good news, there will be Fiesta ST coming. But it will be awhile before we see it. Dutch publication AutoRAI spoke with Tyrone Johnson, development boss of Ford ST and RS models. Johnson revealed that the Fiesta ST would debut in late 2017, with production beginning a year later. Details about the next Fiesta ST are scarce, but Johnson did hint that the next ST would not see a major increase in power. Instead, the focus will be on improving the fun-factor. We wouldn't be surprised if a six-speed manual remains the only transmission choice, along with the ability to get the ST in three or five-door versions. Source: AutoRAI View full article

Porsche Reports November 2016 Retail Sales All-time monthly sales record ATLANTA, Dec. 1, 2016 /PRNewswire/ -- Porsche Cars North America, Inc. (PCNA), importer and distributor of Porsche 911, Boxster, and Cayman sports cars, Macan and Cayenne SUVs, and the Panamera four-door sports sedan line-up in the United States, today announced an all-time monthly record with 5,513 vehicle sales in November. This represents a 23.9 percent increase over November 2015. Year-to-date retail sales stand at 50,265 vehicles, a 5.1 percent increase over last year. "Congratulations to our team for achieving yet another stellar month of sales. Year-over-year, we continue to outpace ourselves and I am certain this year will close no differently," said Klaus Zellmer, President and Chief Executive Officer, PCNA. Model November Sales Year-to-Date 2016 2015 2016 2015 ALL BOXSTER/CAYMAN 457 588 5,887 6,249 ALL 911 699 884 8,190 9,244 ALL CAYENNE 1,572 1,523 14,284 15,244 ALL PANAMERA 731 491 4,367 4,729 ALL MACAN 2,054 962 17,536 12,151 GRAND TOTALS* 5,513 4,450 50,265 47,820 *2015 grand totals include 918 Spyder sales; 2016 grand totals include one 918 Spyder sale

Rolls-Royce is the latest automaker to announce they are working on an SUV known as Project Cullinan and today, the company has dropped a couple of pictures to give us a glimpse of what's in store. Rolls doesn't call Project Cullinan an SUV. Instead, they describe the vehicle as being as an “all-terrain, high-sided vehicle.” (Is there such a thing too much pomp and circumstance? -WM) From the two pictures Rolls-Royce has released, Cullinan looks like a raised Phantom wagon. “This is an incredibly exciting moment in the development of Project Cullinan both for Rolls-Royce and for the patrons of luxury that follow us around the world. Bringing together the new four-wheel drive system and the new ‘architecture of luxury’ for the first time sets us on the road to creating a truly authentic Rolls-Royce which, like its forebears, will reset the standard by which all other luxury goods are judged,” said Torsten Müller-Ötvös, Rolls Royce's CEO in a statement. Project Cullinan is also an important vehicle for Rolls-Royce. It will be one of the first vehicles, alongside the new Phantom to use a new aluminum architecture that will underpin future models. The SUV or “all-terrain, high-sided vehicle” is expected to debut sometime late next year. Source: Rolls-Royce Press Release is on Page 2 PROJECT CULLINAN TAKES NEXT STEP IN DEVELOPMENT PROGRAMME In an open letter published in the Financial Times on 18 February 2015, Rolls-Royce undertook to regularly inform its stakeholders about the progress of Project Cullinan. Continuing this dialogue, which has seen twice-yearly updates, Rolls-Royce today publishes photographs depicting the latest key milestone in the development programme of this new ‘all-terrain, high-sided vehicle’. This first full development vehicle will begin testing in public from tomorrow. The world’s leading luxury goods brand has regularly informed its patrons about this painstaking development programme. Advocates of the marque have been shown the first engineering mule built for the development of the new all-wheel drive suspension system, as well as those created to test the all-new aluminium architecture that will underpin all Rolls-Royces from 2018 onwards. This latest development vehicle will travel to numerous locations around the world in a challenging testing programme to ensure that the end product will be ‘Effortless … Everywhere’. Just after Christmas, for example, Project Cullinan will enter the Arctic Circle to undergo cold weather durability and traction testing. Later in 2017, it will travel to the Middle East to endure the highest of temperatures and challenging desert conditions. “This is an incredibly exciting moment in the development of Project Cullinan both for Rolls-Royce and for the patrons of luxury that follow us around the world,” comments Torsten Müller-Ötvös, Chief Executive Officer, Rolls-Royce Motor Cars. “Bringing together the new four-wheel drive system and the new ‘architecture of luxury’ for the first time sets us on the road to creating a truly authentic Rolls-Royce which, like its forebears, will reset the standard by which all other luxury goods are judged.” View full article

Subaru Of America, Inc. Reports Record November Sales Record November - monthly sales increase 11.4 percent over November 2015 60 consecutive months of yearly month-over-month growth Best November ever for Outback, Crosstrek, Forester and Legacy Best month ever for Outback 33 consecutive months of more than 10,000 Outbacks sold 40 consecutive months of more than 10,000 Foresters sold Cherry Hill, N.J. - Subaru of America, Inc. today reported 51,308 vehicle sales for November 2016, an 11.4 percent increase over November 2015 sales of 46,070 vehicles. The company also reported year-to-date sales of 551,955 vehicles, a 4.9 percent gain over the same period in 2015. November marked the 33rd consecutive month of 40,000+ vehicle sales for the company. Outback, Crosstrek, Forester and Legacy sales were notably strong as each carline achieved its best November ever. Increased availability of the Outback helped the model set a new monthly sales record of 17,769 units. Additionally, Outback, Legacy and Crosstrek enjoyed double digit gains over November 2015. “November was the 60th consecutive month of yearly month-over-month sales increases, the longest streak of any automaker in the U.S.” said Thomas J. Doll, president and COO of Subaru of America, Inc. “With the arrival of the all-new 2017 Impreza, the continuation of our annual Share the Love event, and with December typically being one of the best retail sales months of the year, the Subaru franchise is in a great position to achieve its eighth consecutive all-time sales record in 2016.” Carline Nov-16 Nov-15 % Chg Nov-16 Nov-15 % Chg MTD MTD MTD YTD YTD YTD Forester 14,596 13,655 6.9% 160,578 158,395 1.4% Impreza 2,032 4,924 -58.7% 50,112 60,726 -17.5% WRX / STI 2,591 2,481 4.4% 30,341 30,645 -1.0% Legacy 5,814 4,769 21.9% 59,346 54,688 8.5% Outback 17,769 13,079 35.9% 162,203 136,227 19.1% BRZ 235 376 -37.5% 3,927 4,883 -19.6% Crosstrek 8,271 6,786 21.9% 85,448 80,837 5.7% TOTAL 51,308 46,070 11.4% 551,955 526,401 4.9% Moving into the final month of the year, the Subaru Share the Love event will run through January 3, 2017. Subaru of America will donate $250 for every new Subaru vehicle sold or leased to the customer's choice of the following charities: ASPCA®, Make-A-Wish, Meals On Wheels America® and National Park Foundation, or a hometown charity selected by participating Subaru retailers. “Coming off the recent 2017 ALG Residual Value Awards, retailer traffic remains strong and we continue to attract new customers to Subaru at a record rate,” said Jeff Walters, senior vice president of sales, Subaru of America, Inc. “We're pleased that all of our carlines are receiving recognition and contributing to our ongoing success,” Walters concluded. In November, Subaru was honored with the “Best Overall Mainstream Brand” Residual Value Award from ALG, the analytics division of TrueCar Inc. and the industry benchmark for projecting future vehicle values and depreciation data. Along with the top honor, six Subaru models earned awards in their respective segments. Subaru Impreza – Best Compact Car Subaru WRX – Best Sports Car Subaru Legacy – Best Midsize Car Subaru Forester – Best Compact Utility Vehicle Subaru Crosstrek – Best Subcompact Utility Vehicle Subaru Outback – Best Midsize Utility Vehicle – 2 Row The Annual ALG Residual Value Awards honor the vehicles and brands that are expected to retain the highest percentage of their original price after a conventional three-year period. Seven award wins this year up Subaru’s overall total to twenty-five ALG Residual Value awards won since 2010. Subaru was also named Best Mainstream Brand in 2010, 2011, 2012 and 2015.

Hyundai Motor America Reports Record November Sales FOUNTAIN VALLEY, Calif., Dec. 1, 2016 /PRNewswire/ -- Led by CUVs and Hyundai's smallest cars, Accent and Veloster, Hyundai had its best November ever, with overall sales of 62,507, up four percent over one year ago. Hyundai Division posts sales of 61,201 units "With gas prices remaining relatively low throughout the year and a rather robust economy, our Tucson and Santa Fe CUVs, with sales up 10 and 18 percent, respectively, continue to be the shining stars in the Hyundai line-up," said Derrick Hatami, vice president of national sales for Hyundai Motor America. Genesis Division posts sales of 1,306 units "As dealers' inventory continues to improve, with more G80 and G90 models arriving weekly, sales for the brand were up nine percent over October," said Erwin Raphael, general manager of Genesis in the U.S. market. SALES BY BRAND NOV/2016 NOV/2015 CY/2016 CY/2015 HYUNDAI 61,201 60,007 707,485 698,202 GENESIS 1,306 0 5,215 0 TOTAL 62,507 60,007 712,700 698,202 MODELS CARLINE NOV/2016 NOV/2015 CY/2016 CY/2015 ACCENT 6,909 5,041 75,607 58,768 SONATA 15,363 16,732 185,614 190,483 ELANTRA 15,796 17,634 188,763 227,464 SANTA FE 10,786 9,156 120,395 108,616 AZERA 424 299 4,558 5,181 TUCSON 7,616 6,906 81,037 55,280 VELOSTER 3,721 2,204 27,354 21,999 GENESIS 560 1,837 22,804 28,280 EQUUS 26 198 1,353 2,131 G80 1,005 n/a 4,812 n/a G90 301 n/a 403 n/a

Kia Motors America Announces Record November Sales Forte and Sportage Post Best-Ever November Totals; Year-to-Date Sales Up 3.8% IRVINE, Calif., Dec. 1, 2016 /PRNewswire/ -- Kia Motors America (KMA) today announced record November sales of 52,504 units, a 15.3 percent increase over the same period last year. The brand's seventh monthly sales record of the year included: Best-ever November sales of the Forte family of compact cars and Sportage CUV Double digit increases over November 2015 for five models: Rio, Soul, Forte, Sportage and Sedona "With the election occupying everyone's attention early in the month, sales picked up throughout November and culminated in a strong Black Friday weekend as our 'Holidays On Us' sales event drew significant showroom traffic," said Michael Sprague, chief operating officer and EVP, KMA. "With third party experts continuing to validate the new Kia as a world-class automaker, and the arrivals of the all-new Cadenza and first-ever turbocharged Soul, we are well positioned to finish strong and carry that momentum into the New Year." MONTH OF NOVEMBER YEAR-TO-DATE Model 2016 2015 2016 2015 Rio 1,440 898 27,431 22,745 Forte 8,111 5,010 95,732 73,508 Optima 12,330 13,048 111,631 145,732 Cadenza 268 847 4,310 6,745 K900 52 228 754 2,362 Sportage 5,608 4,211 74,859 47,695 Sorento 9,698 9,023 102,951 103,377 Sedona 2,515 2,243 42,236 34,439 Soul 12,482 10,045 133,341 134,974 Total 52,504 45,553 593,245 571,577

BMW Group U.S. Reports November 2016 Sales BMW brand sales decrease 18.2 percent MINI brand sales increase 1.4 percent Woodcliff Lake, NJ – December 1, 2016… Sales of BMW brand vehicles decreased 18.2 percent in November for a total of 26,189 compared to 32,003 vehicles sold in November, 2015. Year-to-date, the BMW brand is down 10.0 percent in the U.S. on sales of 280,339 vehicles compared to 311,398 sold in the first eleven months of 2015. Notable vehicle sales in November include the BMW 7 Series which increased 18.0 percent to 1,233 cars, the BMW X1 which increased 53.2 percent to 2,745 vehicles, and the BMW X5 which increased 18.4 percent to 4,693 vehicles. “Only a month remains in this year and we are beginning to bid farewell to the current generation 5 Series and getting ready to welcome the all-new BMW 5 Series which will make its world debut at the Detroit Auto Show in January,” said Ludwig Willisch, President and CEO, BMW of North America. “The dynamic driving character of the new 5 Series will be a complement to our 7 Series and make for a stronger model lineup heading into 2017.” BMW Group Sales In total, the BMW Group in the U.S. (BMW and MINI combined) reported November sales of 30,696 vehicles, a decrease of 15.8 percent from the 36,447 vehicles sold in the same month a year ago. Year-to-date, BMW Group sales are down 10.2 percent on sales of 327,711 vehicles in the first eleven months of 2016 compared to 364,903 in the same period in 2015. MINI Brand Sales For November, MINI USA reported 4,507 automobiles sold, an increase of 1.4 percent from the 4,444 sold in the same month a year ago. Year-to-date, MINI USA reported a total of 47,372 automobiles sold, a decrease of 11.5 percent from 53,505 automobiles sold in the first eleven months of 2015.

Mitsubishi Motors Reports November Sales Best November sales since 2007; up 1.6 percent year-over-year Mitsubishi SUVs up 7.8 percent over the previous year Outlander up 29.3 percent; best November sales since 2002 Outlander year-over-year sales up 40.8 percent Mirage sales up 32 percent over last November CYPRESS, Calif., Dec. 1, 2016 /PRNewswire/ -- Mitsubishi Motors North America, Inc. (MMNA) today reported November 2016 sales of 6,896 up 1.8 percent from November of 2015. This was the best November for the brand since 2007 with Outlander Sport and Outlander leading the charge. Sales for the year remain up at 1.6 percent over the previous year. November YTD 2016 2015 2016 2015 i‐MiEV 5 4 91 106 Mirage 1432 1085 20671 20253 Lancer 884 1011 13444 16367 Outlander Sport 2355 2955 30567 33610 Outlander 2220 1717 24111 17119 Total 6896 6772 88884 87455