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Bow. Wow! One-Bow Design Takes Mercedes EQS in an Entirely New Direction

March 27, 2021 admin

The new Mercedes-Benz EQS battery-electric sedan makes its formal debut April 15.

One thing’s for sure: there’ll be no mistaking the new Mercedes EQS sedan when it rolls down the street.

Think of the EQS as the all-electric alternative to the German automaker’s familiar S-Class flagship. But you clearly won’t confuse the two when it reaches showrooms in autumn. Some new battery-electric vehicles share the same design language as conventional, gas-powered products. With EQS, Mercedes goes off in an entirely new direction, one it’s been hinting at with concept vehicles like the 2019 Vision EQS.

The production model adopts what the automaker calls a “one-bow” design. It takes the look of the coupe-like Mercedes CLS to extremes. The result could have rolled off the set of a sci-fi film. But there are practical benefits in terms of range and interior roominess, as well.

“We said we have to go further” than just packing batteries into a conventional looking product,” Steffen Kohl, Mercedes’ director of advanced exterior style, said during a media webinar. The EQS “carries the future of Mercedes-Benz,” he added, noting the “one-bow” language of the EQS will strongly influence other products to come from the new, all-electric Mercedes-EQ sub-brand.

Plenty of power and range

Robert Lesnik led the exterior design effort for Mercedes new EQS battery-electric sedan.

EQS rides on a skateboard-like platform, mimicking virtually all new battery-electric vehicles. Its batteries, motors and other key electrical components sit below the floorboards.

The automaker will reveal full powertrain details during a formal unveiling April 15. But EQS uses twin motors, one on each axle, drawing power from a 108 kilowatt-hour battery pack. That provides about 435 miles of range using the European WLTP test cycle. The EPA rating should come in somewhere about 350 miles, according to industry observers.

The layout moves the sedan’s wheels close to the vehicle’s corners. It also frees up space where a traditional gas or diesel engine would be mounted, providing significant flexibility to the Mercedes design team.

Shorter wheelbase, longer cabin

The cab-forward design features a short nose, the angled, one-piece aluminum clamshell hood rising aggressively to flow into a steeply raked windshield. Instead of a traditional, two- or three-box layout, the look is like that of a single bow line, explained Robert Lesnik, who led the exterior design effort.

The Mercedes-Benz Vision EQS concept provided a framework for the company’s new electric luxury sedan.

“EQS will be the world’s best production car ever in terms of aerodynamics,” with a drag coefficient of 0.20 significantly better than even the sleekest of today’s supercars, he explained.

The effect “looks optically lower than it is,” Lesnik added.

The front end features a new grille with “abstracted, three-dimensional star pattern(s),” according to Mercedes. It’s framed by slit-like headlamps flowing into the front quarter panels.

“When people ask why we need a grille anymore,” Lesnik explains that it is “not an air intake. It’s a face.”

“Coming from the future”

The side panels lack the normal creases found on conventional Mercedes models, though the greenhouse does pinch in towards the trunk, giving the EQS a sense of muscularity.

The new EQS features Mercedes’ newly introduced Hyperscreen technology.

Around back, the most distinctive feature is a light band connecting what Mercedes calls “curved, 3D helix” taillamps.

From nose to tail, the new EQS measures 5.2 meters, or 204.7 inches. That’s about 3.5 inches shorter than the U.S. version of the latest Mercedes S-Class. But the electric sedan has more room for four passengers, its cabin pushed forward into what would normally be the engine compartment.

As distinctive as the exterior might be, the interior takes things even further, said Peter Balko, who oversaw development of the cabin. “We wanted our interior to be modern,” he explained, “as if coming from the future.”

Buyers will have numerous options

Buyers have several key options to choose from. The showpiece layout uses the new hyperscreen concept first shown on the latest S-Class. It features a seamless digital cluster running the entire width of the instrument panel. The organically shaped glass blends three different displays, starting with the digital gauge cluster, the touchscreen infotainment screen and a separate display for the front passenger.

The gauge cluster on the new EQS is configurable based on the wants of the driver.

EQS offers a digital gauge cluster and a large, free-floating, Tesla-like infotainment screen for those seeking a more conventional look. The space in front of the passenger can be outfitted with an assortment of different woods and fabrics and even a version of the Star Pattern grille.

The EQS will “touch almost all of your senses,” said Kohl. Among other things, the product development team has come up with three distinctive, user-programmable “soundscapes.”

Sounding off

While battery cars aren’t entirely silent, they are significantly quieter than vehicles with conventional internal combustion engines. Motorists can enjoy the lack of noise or they can opt for one of the soundscapes, “depending upon the emotions of the moment,” said lead sound engineer Thomas Kuppers.

Silver Waves is meant to be soft and soothing;
Vivid Flux is “shimming and explosive,” a bit “techie but (with) warmth,” said Kuppers; and
Roaring Pulse is “pretty raw, with “the growl of thunder,” especially under aggressive driving.

“We haven’t finished yet,” Kuppers added, noting that, “There will be new soundscapes over the life of the vehicle that we will download through over-the-air updates.”

The new EQS will borrow from the conventional S-Class by also appealing to the sense of smell, Mercedes officials noted. The new BEV will have the ability to inject scents into the cabin, including some designed specifically for the new model.

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Q&A: Unite Digital Chief Strategy Officer Dave Zuchowski

March 25, 2021 admin

Unite Digital’s Dave Zuchowski offered insight into the future of automotive retailing during his session with TheDetroitBureau.

Since the very earliest days of the auto industry, motorists have shopped for cars much the same way as they do today. Or, at least, how they did until the COVID pandemic struck. During the past 12 months there’s been a massive shift to online shopping and few expect to see a return to the previous “norm.”

That’s setting in motion a dramatic transformation on the retail side of the business, starting with what dealers do and how they make money. It’s also expected to bring a sharp decline in the number of dealers serving the U.S. market, with perhaps 30% of today’s retailers closing shop or selling out to chains like AutoNation in the not-too-distant future, says Dave Zuchowski.

Zuchowski has spent four decades in the auto business, including a run as CEO of Hyundai Motor America. After a few years working as a consultant, Zuchowski took a new assignment last year, signing on as the chief strategy officer for Unite Digital, a startup that works with dealers on the challenges of working in a digital retail environment. He spoke to TheDetroitBureau.com about what he sees coming in the new world of automotive retailing.

Impact of the internet

Shopping online rose during the pandemic, and is likely here to stay.

TheDetroitBureau.com: We see more and more car buyers going online, whether to do their homework or to complete a purchase. What are the challenges for dealers?

Zuchowski: Inertia is a huge issue. Dealers are resistant to change because it’s a high-dollar, top-line business. If all else fails, revenue cures a lot of evils. So, they’re very reluctant to change because what they’ve had has worked for a very long time. They’re very reluctant to walk away from what worked and that, to me, is the biggest problem. (But) what really matters is what the consumer wants and the biggest change is that they’re not putting up with what we put up with all these years.

TDB: COVID clearly sped up change on the retail side, didn’t it?

Zuchowski: You have all the overlying conditions (for change) and what happened is that dealers reported record profits in the midst of the pandemic. They went through the process, line by line, and they renegotiated costs. They consolidated jobs and responsibilities. They cut back on inventory. They flattened and streamlined the organization. That happens in a downturn. But what surprised everybody was that consumers really turned out to like shopping at home, having a single point of contact and contactless delivery and concierge services, all the things that came out of necessity.

Dealers saw marketing and inventory costs come down and that let them have very targeted, customized marketing campaigns rather than broad-based campaigns that are extremely expensive and pressure margins and do bad things. They went from a supply-side model to a demand-side model. And they realized that though volume went down, margins came back up. People are willing to pay more for that personal touch, even as expenses go down. Dealers have done this before when the economy goes down. The difference is that this time, with COVID, customers responded very favorably.

More and more dealers are bolstering their online sales resources.

TDB: So, will the car business go the way of Amazon, with everything done online?

Zuchowski: Digital retailing doesn’t mean 100% of the people will do 100% of the transaction online. It means we need to create a parallel path, replicating every sales process that can be done in the store and make it available online. Then you let the consumer decide how much to do in the store and how much to do online. I don’t think 100% will want to do everything online but I think it’ll be the distinct majority in the not-too-distant future. I’m talking three to five years.

Other changes in retailing

TDB: It’s not just the pandemic forcing change in automotive retailing, though. What about the coming age of the electric vehicle? We’ve seen Volvo, for one, say they expect to sell all their future battery-electric cars entirely online.

Zuchowski: The traditional retail model has been push, rather than pull. It’s supply, rather than demand oriented. In other industries, it’s completely the opposite. Traditional dealers have a lot of staff. They’re top heavy, with an average of two managers for every sales person. It’s a structure that’s very expensive and no longer what the consumer wants. They want a single point of contact. They don’t want to go into a store and deal with a salesperson, then negotiate with somebody else and then deal with somebody handling (finance and insurance). They want someone who can handle things, soup to nuts.

TDB: They also want a set, single price, don’t they?

Nissan@Home now allows consumers to handle the entire purchase of a new vehicle online.

Zuchowski: I think “one price” is a misnomer but we certainly have to decrease the variability between transaction prices. Customers know from the internet what a dealer paid for the vehicle so there isn’t nearly as much dependence on negotiations.

The dealership of the future

TDB: What does this mean in terms of the number of dealerships going forward and the number of employees?

Zuchowski: A great question. I firmly believe the 30% of dealers who don’t get it and are slow to react will go out of business or get consolidated. The new number will be 70% of what we have today.

When I started out in 1980 there might have been 24,000, maybe 25,000 dealers and now there’s 17,000. (Long term) it’s probably closer to 12,000. You’ll have dealers controlling entire market areas with one central facility and maybe inventory in a storage area, service in a commercial area and maybe a few boutique-style showrooms in high-traffic areas. You’ll have fewer stores with smaller inventory, fewer service bays. The stores will look different and they’ll go to different locations for different functions. There’ll be fewer individual owners and more dealer groups owning a bunch of stores.

TDB: Will things be different for those dealers who remain?

All pure electric Volvo models to be available online only

Zuchowski: There’s always going to be an important role for the dealer in this country. But that role will change. Dealerships essentially will turn into delivery and service centers. I would be very reluctant to make huge investments if I were a dealer, say, for a new, $5 million facility. The way a dealer will make money down the road will change. And there will different ways to get revenue. But even with volumes going down, margins could go up. They won’t have to carry 1,000 cars in stock and spend $100,000 a month on advertising, for one thing.

TDB: Let’s wrap up by talking used versus new.

Zuchowski: It’s a mistake not to look at the business holistically. Every year about 45 million to 50 million vehicles are being sold and when new cars are doing well used cars are off. And when used cars are doing well new car sales are off.

We’ve had an affordability problem for some time but there’s always been a way around it. We’ve now stretched out payments as far as you can go. And we’ve played with rates, now with the lowest interest rates on record. How many people can afford a $40,000 vehicle, especially if your interest rates aren’t at zero percent? Now, all the new technology isn’t free and there are all the regulations to comply with, and you have to add all that to the price of a vehicle. But we’re running out of ways to manage payments. I think used will gain more steam because new vehicle affordability will become a bigger and bigger problem as interest rates go up.

Angry Shareholders Sue Lordstown Motors

March 22, 2021 admin

Lordstown Motors CEO Steve Burns is named in the recently filed lawsuit against the EV startup.

Angry shareholders filed at least three lawsuits against Lordstown Motors for fraud in U.S. District Court, demanding compensation from the cash reserves the company says it is planning to use to launch its battery-electric pickup truck this fall.

The startup company, housed in an old General Motors plant to produce its truck, has yet to file a response to any of the lawsuits. The first suit against Lordstown was filed March 18.

The lawsuits, which was filed in the U.S. District Court for the Northern District of Ohio’s Youngstown Division, comes on the heels of disastrous week for the fledgling electric vehicle company. It began with the devastating research report by Hindenburg Research that sent the company’s stock tumbling.

The company followed that with an unsatisfactory earnings call during which the executives failed to answer the issues raised in the report.

Plaintiffs hit EV startup hard

Burns said during the company’s earnings call he believed his company was the only one to begin automated assembly this early in the pre-production process.

The lawsuit, filed on behalf of Matthew Rico, who identifies himself as Lordstown shareholder, “Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s purported pre-orders were non-binding; (ii) many of the would-be customers who made these purported pre-orders lacked the means to make such purchases and/or would not have credible demand for Lordstown’s Endurance; (iii) Lordstown is not and has not been ‘on track’ to commence production of the Endurance in September 2021; (iv) the first test run of the Endurance led to the vehicle bursting into flames within 10 minutes; and (v) as a result.”

Rico also is asking that his lawsuit be certified as a “class action” that would cover all of Lordstown shareholders damaged by the company’s misconduct.

Hindenburg Research, a short-seller group, claimed the EV truckmaker either faked or overstated claims that it has advance orders for 100,000 of the electric pickups it plans to launch later this year. Further, the group described Lordstown CEO Steve Burns as a “con man.”

The tenor of the Hindenburg report echoes a study it put out last year on Nikola Corp., which also used a SPAC deal to go public, initially generating a big run up in its share price while also lining up a proposed alliance with General Motors.

Lawsuit targets Lordstown executives

CEO Burns expressed enough confidence in his team that he upped the expected production levels to 60,000 units.

The lawsuit names several Lordstown executives, starting with CEO William Burns, as defendants. The suit is built around the statements, including documents the company filed with the Securities and Exchange Commission and various press releases by the company that “were materially false and misleading at all relevant times.”

“The Individual Defendants, because of their positions at the Company, possessed the power and authority to control the content and form of the Company’s annual reports, quarterly reports, press releases, investor presentations, and other materials provided to the SEC, securities analysts, money and portfolio managers and investors,” contend in the filing.

Instead, the lawsuit said Lordstown executive “authorized the publication of the documents, presentations, and materials alleged herein to be misleading prior to its issuance and had the ability and opportunity to prevent the issuance of these false statements or to cause them to be corrected,” going back to when the company went public via a SPAC in August 2020.

The SPAC generated $675 million in cash, money it is using to finish development of its new Endurance model. Lordstown officials claimed they received more than 100,000 non-binding production reservations from commercial fleet users, which the aforementioned Hindenburg report contends is untrue.

The lawsuit added the defendants from Lordstown “knew that the adverse facts” had not been disclosed and were being concealed from the public and that the positive representations being made were false and misleading, making them liable for damages suffered by shareholders.

Jeep Brings Back the Legendary Wagoneer and Grand Wagoneer

March 11, 2021 admin

The legend is back for 2022. The Grand Wagoneer returns to the Jeep line-up after more than three decades away.

The Jeep Wagoneer and Grand Wagoneer are back – and luxurious.

The long-awaited debut of what will now be the brand’s flagship model is scheduled to take place in Los Angeles Thursday morning and what awaits those who turn is a full sized, 8-passenger luxury vehicle ready to challenge names like Navigator and Escalade, among others, for the big dollars spent in the segment.

“We announced we were going to bring an American icon back and expand it into the premium world,” said Christian Meunier, Jeep brand CEO, during an earlier background webinar about the vehicles. The new models, aside from the names, share very little in common with their predecessors. The original Wagoneer was a go-anywhere and haul a lot of stuff while doing it vehicle.

The new Wagoneer and Grand Wagoneer are supposed to deliver a unique customer experience, separate from their more rugged, off-roading siblings. Thee models are not “simply another Jeep,” Meunier explained. They’re definitely not as these are the first Jeeps that are not trail-rated, although officials attribute that to the size of the vehicle more so than their capability.

It’s a new day for Jeep

The new 8-passenger full-size SUV sets a new benchmarked for the Jeep brand.

The new models are “born from Jeep, but their character is different from the rest of the brand,” he said, noting their development stems from the four C’s: culture, consumer, category and character. The culture comes from the brand’s history of innovation and craftsmanship Jeep looks to replicate with the new models. The company targeted a specific type of buyer — the consumer — for the new luxury utes.

“These people live life to the fullest. They enjoy every bit of it. They don’t let friends, status symbols or someone else’s expectation define them, or limit them,” Meunier noted. “No, they are in charge, and they are free. They are free to follow their own path and change it as many times as they want. They don’t seek the perfect life.

“Perfection to them is cold, because it is something unremarkable rational and repeatable. Their life is beautiful because it’s unique, it’s emotional and it’s intense. In a collection of imperfect moments that become memorable experiences. When you leave such a fulfilling life you choose a vehicle with a personality.”

Jeep achieved “category,” the second C, a long time ago as the Wagoneer was a founding father of the large, sport-utility segment. The name carries with it a certain connotation or expectation. The company is confident the new versions of the vehicle will carry forward a unique and notable reputation like its ancestors, but different.

Volkswagen Ponders Porsche Offering to Fund EVs

February 18, 2021 admin

Volkswagen reportedly is considering an offering of Porsche stock to help fund its $86 billion EV plan.

Bringing EVs to market costs big money, forcing some automakers to go public to raise cash – Volkswagen possibly being next.

Reports suggest that VW is pondering a listing of Porsche AG. The money raised designed to help with the roll out more than $86 billion in electric vehicles set to come mid-decade. German business publication Manager Magzin reported the plan is only in the discussion stage.

The listing, which reportedly could net as much $30 billion, would only be for part of the sports car maker and wouldn’t occur until next year, the publication reported. Some analysts believe if Porsche AG were to be spun off entirely it could be worth more than $120 billion.

Volkswagen’s not alone

VW says it will roll out 50 electrified vehicles across all its brands by 2025.

The rumor comes on the heels of Daimler AG’s move to separate its truck unit into its own separate company in the third quarter of this year. The idea is to “unlock the full potential” of the businesses, which some analysts believe means some sort of offering to raise cash.

Once the split occurs, the car unit will need to fund its ongoing expansion of its electrification effort and that could conceivably come in the form of issuing new shares. The new business will be named Mercedes-Benz AG.

Plenty of other automakers have benefitted from IPOs, notably Ferrari and Aston Martin. However, with the influx of new EV makers moving closer to production around the world, the final push to the finish line requires a massive amount of cash.

EV makers raising money

Nascent electric vehicle companies have been scurrying around looking to add more money to their coffers, the latest company added to the list is Rivian. The company raised more than $8 billion from private investors since the start of 2019, including a recent round netting the company $2.65 billion in fresh money.

Volkswagen has designated $86 billion to bring more than 50 EVs to market in the next few years, including the ID.4.

However, as the company is closing in on building pre-production and early run production electric trucks and SUVs at its plant in Normal, Illinois, the idea of having enough liquidity to get through the process must weigh heavy on the top minds there.

With all of the other EV makers raising money through reverse mergers with blank-check companies and getting listed and a fat check, Rivian appears to be on board. Reports suggest the company is preparing for a conventional IPO this fall that could net it as much as $50 billion.

Other EV companies that have secured additional funding through offerings include Fisker, Lordstown Motors, Faraday Future, Lucid Motors and Nikola Motors. Also, the king of EV mountain repeatedly offered new shares to raise funds.

Stellantis Enjoys Warm Welcome from European Investors

January 18, 2021 admin

Stellantis Chairman John Elkann is meeting with the media tomorrow to talk about the company’s future.

Not every merger involving an automaker these days involves a blank-check company. The newly minted tie-up between Fiat Chrysler Automobiles N.V. and Peugeot S.A. was finalized over the weekend and the resulting company, Stellantis N.V., is enjoying a warm welcome.

At least on the stock market.

The new company’s stock trades on three exchanges and it finished the day on the Paris exchange up nearly 7%, closing at €13.14. It also jumped up 7.7% on the Milan exchange.

The New York Stock Exchange, the third exchange it’s traded on, was not open today due to the Martin Luther King Jr. holiday.

(Chrysler is no more as Stellantis comes to life.)

CEO Carlos Tavares has a lot on his corporate plate now that the merger is complete.

The $52 billion merger of near equals creates a massive enterprise with operations on six continents, employs about 400,000 people, sells – at least for the time being – 14 vehicle brands and sells 8.1 million vehicles annually, making it the fourth-largest automaker in the world behind Volkswagen, Toyota and the Renault-Nissan-Mitsubishi Alliance.

With all of those possibilities, it’s going to take a press conference Tuesday to start revealing what Stellantis will look like now that’s it’s a living, breathing entity. What brands will stay? How many workers will keep their jobs?

People are nervous because the CEO of the new enterprise, Carlos Tavares, has a history of being fearless when it comes to eliminating unprofitable operations and processes in the pursuit of corporate profit. One need only look at how what he did with former General Motors’ subsidiary Opel. A money-loser for a decade, he had it in the black in one year.

(FCA CEO Manley gets new assignment following Stellantis merger.)

“Stellantis faces a mixed outlook as U.S. stimulus plans may buoy Chrysler vs. a more uncertain outlook for Peugeot in Europe,” Michael Dean, BI automotive analyst told Bloomberg. “Former PSA CEO Carlos Tavares takes the helm and, similar to his handling of PSA’s takeover of Opel in 2017, we anticipate a new strategy in the first 100 days of his stewardship. All regions face a difficult 1H amid continued lockdowns.”

Quirky name aside, investors gave Stellantis a warm welcome when it began trading Monday.

The two companies have worked to allay fears of major cutbacks in France and Italy. While top managers have outlined plans to trim costs by $6 billion following the merger, they insist they will be able to do that without closing any plants. They have outlined 40% of those cost savings coming from purchasing, 40% from combining product development efforts, and 20% from marketing and other operations.

However, it’s unclear how Tavares plans to tackle other issues such as improving the company’s performance in China, the world’s largest automotive market, and bolstering its electrification efforts, especially in the aforementioned China as well as in the U.S. Just addressing those two issues are likely to require billions of dollars and euros. Some of plans for these things and more may get touched on Tuesday, Marco Santino, a partner at consulting firm Oliver Wyman, told Reuters.

(Fiat Chrysler and PSA not exactly a “merger of equals.”)

“He has proven to be the kind of person who prefers action to words, so I don’t think he will make loud statements or try to over-sell targets,” he said.

FCA-PSA Set to Kick Off New Year With Completion of Merger

January 4, 2021 admin

Fiat Chrysler and PSA shareholders are expected to approve the merger of the two companies forming Stellantis, the world’s fourth-largest automaker.

This story has been updated to reflect the merger’s approval in separate votes by Fiat Chrysler and PSA investors.

The deal is done; shareholders at both PSA Group and Fiat Chrysler Automobiles now have voted to approve a merger creating the world’s fourth-largest automaker by sales volume, Stellantis.

Shareholders overwhelming approved the deal that was first announced in late 2019 — but only received final regulatory approval late last year. The $58 billion deal won an “Aye” vote from 99.15% of FCA shareholders, while 99.85% of PSA investors approved of the deal during an online meeting. Following the vote, the two companies said the merger process is expected to be completed by January 16.

Officials with the two companies have promised that the merger will yield a significantly stronger automaker, helping drive down manufacturing costs while also making it easier to prepare for the many changes set to sweep through the auto industry in the coming decade, notably the shift to electrified and autonomous vehicles. But the merger also raises numerous questions, starting with the broad range of brands each of the new partners bring to Stellantis. There has been widespread speculation that the new company could eliminate some of the weaker marques, including FCA’s namesakes, Fiat and Chrysler.

(FCA CEO Manley won’t be on the board after merger with PSA is completed.)

Carlos Tavares, PSA (left) and Mike Manley, FCA, shake hands following the signing of the merger agreement between the two companies in 2019.

“Stellantis will be a sort of conglomerate of brands, some great and some not so good and most very regional,” wrote Jefferies analyst Philippe Houchois. “The merger will be a good opportunity for a reset.”

The auto industry has been facing enormous pressures in recent years and FCA’s former CEO, the late Sergio Marchionne, began looking for an additional alliance partner even before completing the merger that formed Fiat Chrysler Automobiles a decade ago. During his tenure the plan was rebuffed by some of the industry’s giants, including Volkswagen and General Motors. It was Marchionne’s successor, Mike Manley, who took things a step further.

Manley came within hours of completing a merger with the largest French automaker, Renault, but the deal unraveled just before it was set to be announced. Months later, FCA made the surprise announcement that it was talking with PSA, parent of brands including Peugeot, Citroen, Opel and Vauxhall.

A formal plan was announced in December 2019 but it faced a variety of challenges, including issues raised by the coronavirus pandemic. Nonetheless, the process moved forward, the proposed partners clearing the last regulatory hurdles as 2020 drew to a close.

Under the agreement, FCA’s Chairman John Elkann – heir to Fiat’s founding Agnelli family – will retain that title at Stellantis. So too will Carlos Tavares, the highly regarded CEO who has been credited with turning around the French company since joining it six years ago, keep his role. Significantly, PSA was able to put the Opel/Vauxhall unit into the black

FCA CEO Mike Manley will not retain a seat on the board of directors after the merger.

within a year after acquiring the German-based operation from General Motors. Under GM, Opel had been in the red for nearly two decades.

(FCA, PSA pick name for post-merger company: Stellantis.)

Nonetheless, PSA has plenty of challenges of its own. Among other things, it is trying to find the formula for returning to the critical U.S. market it left nearly three decades ago.

As Stellantis, the new enterprise will need to move quickly to catch up with key competitors racing to bring electric vehicles to market. These include not only established manufacturers such as VW and GM but new entrants like Tesla and Lucid.

The partners set some tough goals going into the final phase of the merger. Early on, officials estimated they could squeeze out savings of 3.7 billion euros, or $4.5 billion, through various efficiencies. They later upped that to 5 billion euros, or about $6.1 billion. But the pandemic has made the business of forecasting, whether unit sales, revenues or earnings, exceedingly difficult. And the expectation of analysts, such as IHS Markit, is that it will take to nearly mid-decade before global sales come close to pre-pandemic levels.

The industry has been seeing an acceleration of mergers, acquisitions and less overarching joint ventures and alliances in recent years. But FCA provides a textbook example of how they don’t always pan out. The U.S. side, Chrysler entered into a supposed “merger of equals” in 1998 but, a decade later, found itself discarded by the German side of DaimlerChrysler AG. It would have been allowed to go bankrupt by the Obama administration in 2009 were it not for Fiat pulling together a rescue plan.

Fiat Chairman John Elkann will retain the same role in a merged company.

Then, under CEO Marchionne, FCA spent years chasing an even bigger alliance.

Curiously, the company that originally defined the concept of “bigger-is-better” reversed course following its own brush with Chapter 11. GM not only sold off the endlessly struggling Opel unit but also pulled out of an assortment of once important markets, including Australia, Russia and South Africa. After the formation of Stellantis, GM will slide back one spot and become only the world’s fifth-largest automotive manufacturer.

(FCA, PSA formally lock merger into place.)

“The auto industry has been chasing size and consolidation for years, but it’s been slower in coming than many would like to see,” Jefferies analyst Philippe Houchois told investors. “The question is whether GM, Toyota and Renault-Nissan have provided evidence that there may be limits to this strategy.”

First Drive: 2021 Volkswagen ID.4 First Edition

December 18, 2020 admin

Volkswagen offered an early look at the 2021 ID.4. The prototype more than hinted at the impressive crossover coming. (Photo credit: Larry Printz)

The forthcoming appearance of the 2021 Volkswagen ID.4 is far from a surprise if you pay attention to auto shows. It’s here that VW clearly proclaimed what it had up its corporate sleeve with a series of ID electric concept vehicles.

And given the consumer proclivity for crossovers, particularly compact crossovers, it’s little surprise that the first in a series of Volkswagen EVs under the ID sub-brand will appear in March 2021 in the form of the ID.4 compact crossover.

Overview: Offered in base, Pro and First Edition trims, Volkswagen allowed TheDetroitBureau.com to briefly drive a First Edition pre-production prototype, although Volkswagen is still finalizing the vehicle’s software before it enters production.

Initially, the two-row crossovers will be built in Germany, but that will change come 2022. In November 2018, Volkswagen began an $800 million expansion at its Chattanooga, Tennessee plant for a new body shop and battery manufacturing site for the ID.4.

The 2021 VW ID.4 prototype provided an early look at what’s to come next year. (Photo credit: Larry Printz)

Exterior: Given the solid, structural boxiness of VW’s crossovers, the ID.4 is a refreshing change of pace, with flowing, sensual lines offset by a gray accent to the vehicle’s side profile that visually lowers the car. The ID.4’s front-end recalls the new Golf despite the lack of a grille, and the overall presence is cutting-edge contemporary without being excessive. Uniquely, the ID.4’s charging port is not up front like many EVs; it’s in the rear where you would expect to find the fuel filler door. VW includes ports for its charger as well as a DC fast charger.

All models come with a body color roof, black roof rails, 19-inch aluminum alloy wheels, heated side mirrors and washer nozzles, and, on all-wheel-drive models, a heated windshield. The $4,500 Statement package adds a panoramic fixed-glass roof, premium LED projector headlights with adaptive front-lighting, power-folding side mirrors with puddle lamps, a 12-inch touchscreen, SiriusXM satellite radio with a three-month trial, an adjustable trunk floor, and a power tailgate. The $1,500 Gradient package upgrades the Statement package with 20-inch wheels, and a black roof with silver roof rails.

(VW begins battle with Tesla for EV sales in China with two new ID.4 models.)

Interior: Like other EVs, the ID.4’s driveline components are mostly beneath the vehicle, allowing for a flat floor and generous interior space given the vehicle’s overall length, which nearly five inches shorter than a Tiguan. Yet it has 99.9 cubic feet of passenger volume, and 30.3 cubic feet of cargo space, expanding to 64.2 cubic feet with the seats folded.

“… Given the solid, structural boxiness of VW’s crossovers, the ID.4 is a refreshing change of pace …”

The First Edition’s fixed Panoramic glass roof made the cabin feel even larger. There’s ample legroom front and rear for even the tallest of passengers. The ID.4’s two-tone ambience is starkly modern, but less barren than comparable Teslas. Material quality is impressive.

The switchgear on the 2021 Volkswagen ID.4 prototype is almost entirely capacitive, (Photo credit: Larry Printz)

Thoughtfully, designers have filled the ID.4 with little conveniences. The center console has a sloped compartment for wireless charging, as well as wireless Apple CarPlay and Android Auto. The console bin has removable dividers that form a cupholder.

The back of the front seatbacks has small secondary pockets to hold smartphones. And the base of the B-pillars has tie-down points, in case you fold down the rear seats and need to secure cargo. The rear cargo deck’s floor opens to reveal a shallow secondary compartment and another compartment that holds the charger and tire patch kit. There is no spare tire, but there a number of grocery bag hooks and USB-C ports.

The instrument panel contains capacitive switches, but there’s no haptic feedback to alert you of activation. Nonetheless, their spare design was refreshing, as there’s none of the visual clutter that so many designers seem to insist upon. Once deciphered, they’re easy enough to use. The instrument cluster is mounted on the steering column, and telescopes along with the steering column. The transmission switch is mounted next to the cluster, and actuates by twisting it forward for drive, and rearward for reverse. A button on its side engages park.

Standard features include a 10-inch touchscreen, rain-sensing wipers, auto-dimming rearview mirror, dual-zone automatic climate control, keyless entry, and a heated steering wheel and a 4G LTE-enabled hotspot for up to four devices.

(VW ID.4 charges into American market takes aim at Tesla.)

The roomy front seat of the the ID.4 prototype sports a very modern, but not edgy look that supports the exterior look. (Photo credit: Larry Printz)

Powertrain: Uniquely for a modern Volkswagen, the ID.4 is rear-wheel drive, the first since the original VW Beetle and its offspring. An 82 kW AC Permanent-Magnet Synchronous Motor and 1-speed automatic transmission is mounted to the rear axle, and generates 201 horsepower, and 208 pound-feet of torque. A second motor will be added to the front axle later in the model year to provide 302 hp and all-wheel drive.

Volkswagen decided to use rear-wheel drive because it allows for a more powerful motor, negating any chance of torque steer, a common problem with front-wheel-drive EVs, according to Gunnar Wynarski, an engineer with Volkswagen in Chattanooga, Tennessee. In addition, engineers moved a lot of components out of the instrument panel and under the hood to add a margin of extra safety and provide more interior space.

The EPA rates the ID.4 at 104 MPGe city/89 MPGe mpg highway/97 MPGe combined, with a 250-mile range. Charging time from five to 80% takes about 38 minutes on a fast charger, according to Wynarski. Volkswagen also includes three years of fast charging with Electrify America at no additional cost.

Technology and Safety: Standard driver assistance technology includes anti-lock braking system, electronic stability control, forward collision warning, autonomous emergency braking with pedestrian monitoring, blind-spot monitor, rear-traffic alert; adaptive cruise control, lane-keeping assist, travel assist; and emergency assist, dynamic road sign display, park distance control, and automatic high-beam control.

Driving impressions: Our initial drive was brief and confined to the sort of mundane interstates and clogged thoroughfares that constitute daily driving. Clearly, the ID.4 has this sort of driving licked, as its instant torque lends the ID.4 a lively feel. The new MEB platform packs the batteries down low between the axles, which provides for a solid, weighty feel that ably balances compliance and control, while the absence of an internal combustion engine and any semblance of road noise made for a blessedly quiet driving experience. And the accelerator and brake pedals are whimsically embossed with play and pause symbols.

There was no chance to push the ID.4 through more abrupt maneuvers or measure long-term seat comfort or control logic. That will have to wait for a full road test.

(Volkswagen offers early look at ID.4 interior.)

Wrap Up: With the ID.4, Volkswagen has fielded an extremely competitive new entry in burgeoning compact crossover EV segment, one that could quickly grow to outsell its conventional VW siblings.

Hennessey Looks to Make Run at Speed Record in New Venom F5

December 18, 2020 admin

The new Hennessey Venom F5 is powered by a 6.6-liter V-8 putting out 1,817 horsepower.

Records are made to be broken and speed merchant Hennessey Special Vehicles is looking to do just that with its newly, ahem, launched Venom F5.

This is Texas-based Hennessey’s second iteration of the vehicle, which competes with other supercars like the Bugatti Chiron SuperSport, and the company plans to produce just 24 of them at a cost of $2.1 million each.

“Our customers love speed, so we’re fired-up to push the boundaries of what’s possible to attempt the world’s fastest production car record, but the Venom F5 is about more than just speed and power,” the company noted in a release. “This car will handle superbly, quality is exceptional, there are more than 3,000 bespoke parts, materials are exquisite, everything is a fitting tribute to 30 years of the Hennessey brand.”

(Hennessey offers 805-hp Venom package for 2021 F-150.)

Hennessey is building 24 of the new Venom’s — at $2.1 million each.

The Hennessey folks are looking to exceed a 311 mph average after two runs on the landing strip at NASA’s Kennedy Space Center in Florida early next year. The new Venom clearly has the look of a vehicle capable of that kind of speed, and the powerplant only supports the notion.

The Venom F5 is powered by a twin-turbocharged 6.6-liter V-8 engine, which the company developed and built in-house. Hennessey designed and built completely in-house. It produces 1,817 horsepower funneled through a 7-speed transmission.

That results in a 0 to 60 mph time of a smidge under 2.6 seconds. It puts power to the ground as a rear-wheel-drive model rather than all-wheel drive, which is a more typical configuration for hypercars, especially those looking to set new records.

This power, 277 hp/liter, in a car that weighs just 2,998 pounds generates a power-to-weight ratio of 1,298 hp/ton – the highest of any road car, the company noted. The weight is achievable due to its carbon-fiber monocoque and other lightweighting methods, i.e. carbon fiber everywhere.

(Jurassic Drive: Hennessey unleashes new beast — VelociRaptor 6×6.)

While it’s built with speed as its selling point, Hennessey plans to sell 24 of these vehicles so come creature comforts will be built into the two-seater, such as air conditioning, a 9-inch Alpine touchscreen with Apple CarPlay and Android Auto available and Bluetooth capability.

The new Venom is certainly fast, but it’s not just a chassis with a huge motor bolted to it.

However, the new Venom isn’t just the legendary automotive custom builder’s latest offering with a big price tag. The company plans on regaining the title of world’s fastest production car. That title is currently held by SSC’s Tuatara hypercar, which posted an average speed of 316.11 mph in October. Or maybe it’s not. There is some controversy surrounding the verification of the new leader’s record run, but for now it’s still the official record holder.

Since there is some issue surrounding the current benchmark, Hennessey officials laid out their plans to make sure there is no uncertainty surrounding their efforts.

The record attempt will be independently verified by the world-renowned experts from Racelogic using VBOX GPS data acquisition systems. Racelogic / VBOX engineers will be on site to install, test and calibrate the speed testing equipment in the F5 to ensure absolute accuracy and transparency.

(Ready! Set! Record! Hennessey wants speed title for Venom F5.)

In addition, VBOX engineers will verify all test data and final speed numbers. The speed test will be attended by independent witnesses, media guests and F5 customers. GPS data and uninterrupted video footage will also be made publicly available following the speed test.

Bentley Shifting to All-Electric Portfolio by 2030

November 5, 2020 admin

Bentley CEO Adrian Hallmark discusses the company’s Beyond100 plan.

British performance luxury marque Bentley plans to shift from internal combustion powerplants to battery-electric fast enough to make your head snap like so many of the vehicles it produces — in less than a decade.

Bentley’s push to electrify its entire portfolio with hybrids and battery-electric vehicles by 2026 with a move to BEVs only by 2030 is part of the company’s overall goal of being a carbon-negative company by the end of this decade. Those goals, and others, are all wrapped up in its Beyond100 strategic plan designed to keep the brand at the top of the luxury heap with its current customers as well as future buyers.

It’s this push – driven largely by governmental mandates – to make the company carbon neutral that ultimately trickled down into the plans for the vehicles, CEO Adrian Hallmark said.

(Bentley unwraps updated 2021 Bentayga.)

Bentley executives participate in the Beyond100 webcast Thursday.

The company will launch not one, but two new hybrids next year. Further it expects that its entire model line-up will offer a hybrid variant to match the gas-powered vehicle by 2023. This will be followed by Bentley’s first-ever pure electric model in 2025 as it marches on to its goal of full electric by the end of the decade.

While the shift away from gas-powered vehicles in such a short period of time may be alarming to some, the 100-plus-year-old carmaker has a few good reasons to put this plan into gear. First, it’s based in Great Britain, which was slated to ban the sale of new gas- and diesel-powered vehicles in 2040. However, there is a push to accelerate the deadline to 2030, which would fit very nicely into Bentley’s new electrification timeline.

That said, Jan-Henrik Lafrentz, Bentley’s CFO, noted during an online event hyping Beyond100, that the company is advocating for hybrids to meet the government’s definition of zero-emission vehicles despite using an internal combustion engine as part of the pairing. He noted the company has been suggesting to government officials that there should be an “overlap period” to allow for the move from ICE-powered vehicles to hybrids because they cost less than pure EVs.

(Bentley Mulliner moves into new era with debut of Bacalar.)

On top of that, Bentley’s own research shows that the younger buyers they want to attract in the near future are looking for “an experience” when they buy a vehicle. They also noticed that 60% of “high net worth” people will be under 40 years old. Further research last year showed that after the brand introduced its EXP 100 GT electric concept car, it managed to get the eye of millennials with a double-digit uptick in the percentage of them saying that they intend to buy a Bentley.

Bentley’s Hallmark, right, said the company expects to be carbon negative by 2030.

In short, electric vehicles draw younger buyers and Bentley’s push to change over quickly means future buyers.

“We really see that we’re in a good position to engage with this customer,” said Chris Craft, the brand’s sales and marketing chief.

However, the company’s efforts aren’t limited to just producing carbon-neutral vehicles as quickly as possible. It’s looking to be the world’s leading environmental automaker. Its production site in Crewe, England was certified carbon neutral by the Carbon Trust. It achieved the ranking by implementing a variety of green processes, such as a water recycling system in the paint shop, planting trees, installing 30,000 solar panels to help it switch to renewable energy sources to power the facility.

Long term, Bentley wants to be carbon negative, and thinks it will happen by 2030. In short, the company’s vehicles and facilities will lower the amount of carbon dioxide in the atmosphere.

(Bentley offers glimpse of its future with EXP 100 Centenary Concept.)

In the short term, Hallmark said the company was handling the impact of the pandemic well. The company expects to post break-even financials for the full year, selling more than 10,000 vehicles. Perhaps more importantly, the number of vehicles on order has risen 60% since the start of the year.

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