Motoring News
Coronavirus continues to slow sales
Initial quarterly reports of new vehicle sales volume from July 1 to September 30, 2020, show an industry that continues to struggle in the face of the COVID-19 pandemic. Across the industry, sales declined nearly 20 percent. There was good news, however. Several automakers reported sales increases in September. As for the third quarter results, three automakers reported improved sales. Volvo was up 11.1 percent, Mazda reported it sold 6.9 percent more cars in the third quarter of this year, compared to the third quarter 2019, and Hyundai-Kia was up
0.9 percent. General Motors was down
17.4 percent, Ford was off by 17.2 percent, Fiat Chrysler Automobiles saw a decline of 10.4 percent, Honda was down 9.5 percent and Toyota was off by 11 percent.
Traffic deaths down; death rate up
Traffic deaths during the second quarter fell slightly, according to the National Highway Traffic Safety Administration. The federal agency reported that 8,870 people died on the nation’s roads during that period, a reduction of about 3.3 percent compared to the second quarter of 2019. However, the death rate climbed to its highest level in 15 years. The reduced traffic produced wide-open roads during the COVID-19 lockdown and encouraged higher speeds and riskier behavior, according to some traffic safety experts. As a result, the fatality rate during the second quarter of 2020 climbed to
1.42 deaths per 100 million vehicle miles traveled, compared to 1.1 deaths per
100 million vehicle miles in the first quarter of this year. During the period of the lockdown, NHTSA reported that speeds on the highway rose, extreme speeding became more common and seatbelt use declined. One other factor could be at play in this time period. Older drivers, who tend to take fewer risks and who are more susceptible to the virus, may have stayed home, skewing the results.
Europe evaluates advanced driver assistance systems
The European New Car Assessment Program has concluded an examination of 10 driver assistance systems and determined that three of these deserved to be rated “very good,” which is the highest rating available. Those three systems are offered on the Mercedes-Benz GLE, the BMW 3-Series and the Audi Q8. Tesla’s Autopilot was also reviewed but was downgraded for its inability to keep drivers focused on the road while in use. It did, however, earn the highest score when tested for its ability to respond to emergencies and for overall performance. It ended up with a middle rating of “moderate.”
Ford’s new CEO moves quickly
Ford’s new CEO, Jim Farley wasted no time in making changes when he took over the helm on October 1. On his first day there was a shuffling of Ford’s senior executives, with CFO Tim Stone stepping down, to be replaced by John Lawler, who previously headed Ford’s autonomous vehicle efforts. Joy Falotico, who served as Ford’s chief marketing officer while also serving as president of Lincoln is giving up the marketing position to concentrate on Ford’s luxury brand. No replacement for the marketing position was named, though Ford did promise to fill the spot quickly. Farley reiterated previous statements in which he said that Ford would concentrate on commercial vehicles and the electrification of its models. He said he would follow the path taken by the retiring president, Jim Hackett, who directed more resources to the company’s strongest business lines, in an effort to improve the company’s margins.
FCA-PSA merger review
Antitrust regulators in the European Union have said in a filing with the European Commission that they will decide whether or not to clear the proposed merger of Fiat Chrysler Automobiles and the PSA Group by February 2, 2021. The commission had suspended consideration of the merger pending the arrival of requested data from the companies. The concern is that the merger would have an anticompetitive outcome in the van market in the 14 EU counties and the United Kingdom.
PSA Group has offered to modify its van making joint venture with Toyota in an effort to allay commission fears. The offer involves increasing production for Toyota’s ProAce van at PSA’s Sevelnord plant in France. Competitive van makers and customers will now have input while the commission makes a decision. If allowed to proceed, the resulting company would become the fourth largest automaker in the world.
Meanwhile, the two companies are assembling a board of directors on the assumption that the merger will proceed. The new company, to be named Stellantis, will have current FCA and PSA leaders and family members on the board, as well as a range of high-level talents from around the world and outside the auto industry. Not on the list is anyone closely associated with FCA’s North American operations, including FCA’s CEO, Michael Manley. His future with the company has not been clarified.
Honda redirecting efforts
Honda has announced that it will no longer be an engine supplier to FIA Formula One World Championship auto racing teams.
The decision will become effective at the end of the 2021 season.
Honda CEO Takahiro Hachigo said that the decision had nothing to do with the pandemic. Rather, it reflects Honda’s desire to direct its engineering resources toward its long-term goal of becoming carbon-free by developing zero-emissions technology. These approaches will include fuel cell and battery technologies.
GM and Nikola continue to talk
In early September, a tentative deal between General Motors and startup electric truck maker Nikola was announced. Under the terms outlined, GM was to take an 11 percent stake in Nikola in exchange for manufacturing Nikola’s battery-powered pickup truck, to be called the Badger, and supplying Nikola with fuel cell technology. No cash was involved. Since then, the value of Nikola stock has plummeted, following allegations by a short seller who said that Nikola had issued misleading statements that exaggerated the startup’s technology and capabilities. With more than half of the value of Nikola erased by the collapsing stock price, GM is seeking changes in the deal, according to reports published in Automotive News.
On the table is the possibility of GM taking a higher stake in the company. The short seller’s allegations have prompted a federal regulatory investigation and have raised questions as to the thoroughness of GM’s review of Nikola, which has issued a denial of the charges. A December 3, 2020 deadline is in effect to finalize a deal.
New Civic coming
Several enthusiast publications have picked up an image of the new 2022
Honda Civic Hatchback, expected to be announced next spring and offered for sale before the end of 2021. The image was part of a patent application that the CivicXL.com forum uncovered. It shows the 11th generation Civic with styling updates that can be considered evolutionary rather than revolutionary, when compared to the current model. According information disclosed by Honda, the new Civic lineup will include a sedan and hatchback and there will be Si and Type R models for the performance market. Not on the list is the Civic coupe. As of now, it appears that the Type R will be offered only as a hatchback. The Si will be based on the sedan with a hatchback version possible.
Nissan’s new Frontier
The current Nissan Frontier, a midsize pickup truck, has been around for 15 years, during which time Nissan has relatively only minor changes. Now, Car and Driver has seen the new generation Frontier, expected to arrive as a 2022 model. The pictures show the truck in camouflage, but it can be seen that the body is all new, though it does not appear to offer any revolutionary styling themes for the pickup truck arena. Power is expected to be provided by a 3.8-liter V6 working through a nine-speed automatic transmission. This drivetrain was introduced in 2020 for the current Frontier. The images Car and Driver has show a King Cab, or extended cab version of the truck. The magazine expects Nissan to use the current frame as the basis for the new Frontier and continue to offer long and short cargo boxes as well as a crew cab derivative.
Volvo S and V90 pricing
Volvo is renaming one version in its flagship sedan and wagon lineup and altering the list prices for 2021. The changes on the
S90 and V90 models coincide with some mild styling updates and a few equipment changes. Base prices will rise on some models by between $350 and $1,000. The S90 plug-in hybrid will be renamed and see a price reduction. The new version of this vehicle will be called the Recharge and it will cost $3,150 less than last year’s S90 T8. It now starts at $61,045. The base S90 sedan starts at $52,545 and the 2021
V90 wagon, which is special order only, is $52,795. The Cross Country version of the V90 wagon will come with all-wheel drive and carry a $55,895 starting price. It will be stocked by Volvo dealers.
GM recalling some brake-by-wire models
General Motors is recalling some 2021 Chevrolet Trailblazers and C8 Corvettes, 2020 and 2021 Buick Encores and 2020 Cadillac CT4, CT5, and XT4 models. In addition, GM has issued a stop-sale order on several of these cars. The problem prompting this recall was caused by a supplier’s lapse and affects the ability of sensors to communicate with the brake boost system. The fix involves replacing the electronic brake boost module.