December 2024,
As 2024 winds down we prepare for an event-filled 2025. To start the New Year we'll be attending the International CES in January, not only to check out the latest and greatest in electronics, but also to catch up with old friends. If you've never attended the CES, I can't think of a trade show that's as well-run and organized. And it's in Las Vegas, that alone makes CES worth the 3,000 mile trip from New York, but you'd actually be surprised at how much of the show is related to the auto industry. Mobile Electronics is a huge part of CES, and although we believe auto manufacturers are packing too much electronics in vehicles these days, that doesn't mean we're not interested in new, improved, or complimentary technology. But we mostly go because Las Vegas is a lot of fun. If you do happen to go to the CES, I highly recommend visiting the VOXX International exhibit. In full disclosure, I managed VOXX's international division at one time, so I may sound a little biased when I say this; VOXX is not only one of the most innovative companies in the world, but one of the best-managed. In mobile electronics alone, a few of the many innovations VOXX introduced at the CES are the first remote-starter system, the first in-car video system, and the first D-RDS receiver - sectors the company is still the industry leader in, thanks to its long-time CEO, Pat Lavelle. Pat is also the former chairman of the CES and a board member of the Consumer Technology Association, and with good reason. In the five years I worked for VOXX, I not only saw Pat spot emerging technologies and products that transformed the industry but I had a front-row seat to the best real-world master class in management, thanks to Pat.
My best wishes for a Merry Christmas and a Happy New Year!
September, 2024
We return to the office after spending most of August in Europe and our 2024 European Summer Rally is in the books. Like last year's, it was a fun-filled adventure with plenty of memories that will last a lifetime, as well as a few pleasant surprises. As we "cruised" in a variety of vehicles ranging from a Ferrari 599 to a FIAT 500X, one of the pleasant surprises of the rally was a 4-door sportwagon a compact SUV in the group. The Audi A3 Sportwagon S and the FIAT 500X were not only a ton of fun to drive but turned in amazing MPG numbers. They were so impressive and fun to drive that they deserve special mention.
The 500X, despite being the slowest vehicle in the group and lacking the fancy-schmancy features and electronics of the other vehicles, was nonetheless fun to drive while being incredibly comfortable. When you drive 2,500 miles in 9 days, comfort matters a lot and no car in the group did it better than the 500X. It was also easy to drive right from the get-go without having to read instructions for every little thing - you just get in and drive, and whatever did require entering or changing settings of any kind was really easy to figure out. The other vehicles were filled with what's a growing problem; TMI - Too Much Information. Not everyone wants a computer moonlighting as a car. It took hours of reading manuals in some cases to figure out what did what or how to de-activate features we didn't want to begin with, including AI-assisted Lane Departure Correction. That's a nice feature when you're driving a family sedan at low speed, but not something we liked at the speeds we drove.
The Audi A3 Sportwagon S had some of that confusing software that was frustrating at times, but overall the vehicle is a Gem, with a capital G. Despite being a turbo-diesel, it was extremely responsive and quick enough to give the Z-4 in the group a run for its money. Being a wagon, it also had plenty of room for people and baggage, not to mention it's just plain good-looking. The S has a stiffer suspension than the less expensive A, which we appreciated, but it also has stiffer seats, which on long drives can be uncomfortable. Other than that, we loved it!
A good deal of the driving we did was on highways, and when we observed the speed limits, both the 500X and the A3 S got close to an amazing 60 MPG! That's not a typo. The sad, and really incredible part, is that neither of these models are available in the US. The FIAT 500X is available here, but only the gas version. Why Stellantis doesn't make the turbo-diesel in the US is incomprehensible. The European version we had was a turbo-diesel that is faster that the US gas version and also gets almost twice the gas mileage. The A3 Sportwagon isn't available at all in the US in any configuration, which is really a shame.
Top honors this year went to a Porsche 911 Turbo S, and although the Z-4 did an admirable job keeping up with it on most roads, only the Ferrari was able to keep up with it on open highways. Photos and videos are posted in the Members' section, and speeding tickets will surely be following in the mail (there's radar everywhere in Europe) but well-worth it!
Cheers!
July, 2024
As we start the Summer of 2024 and prepare for our Summer Rally in Europe, yet another major legacy carmaker (see the news brief on M-B below) comes to its senses on EVs.
ICE Auto Club was founded as a medium for auto enthusiasts who love cars with Internal Combustion Engines, not only because of the fascination we have with these machines, but because no matter how you slice it, when you consider all the peripheral issues, problems and adverse effects EVs have, the good old Internal Combustion Engine remains the best solution for powering a vehicle.
When I'm not behind this editorial desk, I teach undergraduate and graduate business courses at several top-tier universities. I mention this because for years, thirteen in all, I've been telling my students that electric vehicles are not the panacea people have been led to believe and don't come anywhere near living up to the claims that were persistently made about them with religious fervor - certainly not enough to justify the fantastic sums of money, much of it taxpayer money, poured into them. Taxpayer money which would have been better spent on real solutions to climate change.
Having managed companies in the automotive sector for the better part of 20 years, I'm no stranger to the industry. That's what makes it even harder to grasp corporate boards' willingness to approve the billions of Dollars spent on developing vehicles that few people want and that pose so many problems. Until recently, merely questioning the buoyant claims or viability of electric vehicles was often ridiculed, despite reasoned arguments that prove to be correct as more and more issues and problems with EVs emerge.
As these issues come to light, car manufacturers are now "pivoting", a nice euphemism that lets companies avoid having to admit mistakes after losing billions of Dollars. This pivot is to focus more on ICE-powered "hybrid" vehicles, which is the very approach that should have been taken from the beginning, as companies like Toyota correctly advocated for years.
It's taken years of mounting losses and a trainwreck of unsold EV inventories as new and used EV prices crash, but the heads of some of the world's biggest auto makers are finally starting to realize what my first-year business students figure out in a couple of hours.
Cheers!
December, 2024
Stellantis CEO Carlos Tavares abruptly resigned on December 1, and John Elkann, COB of Stellantis, has temporarily taken over as CEO, promising to repair strained relationships with dealers and industry partners. The new boss is also committed to rebuilding trust and confidence among top executives, allowing their input and local expertise to shape strategy decisions.
We can't say we're sad to see Tavares go as he was slowly destroying not only Dodge but the JEEP, Ram, and Alfa-Romeo brands as well, which have been in a tailspin, losing 24% market share in the past year alone. Tavares' solution to the slow-motion train wreck he's caused is to sell off brands, because that must be the problem, an idea he started floating with Alfa-Romeo and Maserati. Just another example of a grossly overpaid CEO that doesn't understand that part of the reason you get paid all that money is to find solutions to problems like declining sales. But that's hard to do when the CEO is the problem. Thankfully, part of Elkann's plan is to bring back some of these brands' old managers and restore common sense.
July, 2024
Stellantis is issuing a recall for 332,000 vehicles across its Alfa Romeo, Jeep, and Fiat brands in the United States due to faulty seat belt sensors, as announced by the U.S. National Highway Traffic Safety Administration on Wednesday.
The issue involves a seat belt buckle switch sensor that may be improperly connected, potentially preventing the front seat airbag from deploying correctly. Buckle sensors are crucial for detecting whether the seatbelt is fastened properly.
Dealerships will repair the sensor connection issue at no cost, as stated by the NHTSA. The recall affects select 2017-2024 Alfa Romeo Giulia, 2018-2025 Alfa Romeo Stelvio, 2019-2023 Fiat 500X, Jeep Renegade, and 2024 Fiat 500E models.
July, 2024
Recent trademark filings by Dodge are fueling rumors that the company will bring back the Plymouth Barracuda. The Barracuda, or the 'Cuda as it's known by muscle car enthusiasts, is one of the most iconic and rarest muscle cars ever made, with some original models selling for close to 7 digits.
Trademark filings are no guarantee that the car will be built, but If the near-identical twin of the Challenger is brought back, it will most likely be under its sister brand, Dodge, as a special version of the new Charger. This would make sense as it's almost certain now that Dodge has backtracked on its original plans for the Charger, which was to be an all-electric vehicle. Like the rest of the industry, Dodge is "pivoting" and will almost certainly make an Internal Combustion Engine version of the new vehicle, possibly with a 700+ horsepower Hemi, well in keeping with the muscle car tradition.
July, 2024
Ford has issued another recall for the F-150, the best-selling vehicle in the US.
The National Highway Traffic Safety Administration (NHTSA) issued the recall due to windshields that might detach in the event of a crash. This recall, numbered 24V486000 by the NHTSA, is not as extensive as the March recall affecting over 200,000 F-150s but could still affect approximately 4,361 trucks from the 2024 model year. The windshields may not be properly bonded, posing a risk of detachment during collisions and violating federal safety standards for windshield mounting. Ford sent customer notification letters July 8th, as per the NHTSA's notice, and Ford dealers are set to remove and reinstall the windshields at no cost.
July, 2024
Europe's most influential lawmaker group, the European People's Party (EPP), introduced an amendment to the EU's zero emissions mandate, set to take effect in 2035, that would keep the Internal Combustion Engine alive. Currently, car manufacturers will no longer be able to make or sell vehicles with Internal Combustion Engines in the EU by 2025 but the draft document introduced by the EPP calls for the EU to "revise the prohibition on combustion engines and to develop advanced combustion engine technology."
The EPP's proposal is set to be discussed at an upcoming EU meeting in Portugal and has a very good chance of passing. Several EU countries including Germany, France and Italy, which are home to major auto manufacturers that have been working on reducing emissions from Internal Combustion Engine with alternative fuels have already been granted some exceptions beyond 2035 and it seems this proposal will ensure Internal Combustion Engines will be around for a long time.
July, 2024
The bad news on EVs keeps piling up as electric vehicle adoption fell to just 16.2 on a 100-point scale in April, according to JD Power. The score was the lowest it has been since August 2021. The decline comes as EV inventories have reached their highest level in history. Little wonder that automakers and governments are reversing course.
Even EV discounts averaging 20% over last year's prices have failed to reverse the trend. The lack of interest in EVs, though, is due to much more than just high prices. Consumers have always had other concerns which can no longer be glossed over now that EVs have proliferated - range, time to recharge, and their poor resale value due in part to the high cost of battery replacement. Buying a used EV comes with big risks as the replacement batteries can cost well upwards of $8,000.
July, 2024
Mercedes-Benz is joining the parade, or better put, the retreat of legacy car manufacturers, backtracking on its initial EV goals by increasing its investment in Internal Combustion Engine technology.
Rather than pouring more money into a diminishing market, the company is channeling funds into research and development of ICE technology that will help it meet the EU's strict clean air standards without electrifying its entire model line, which the company had boasted would be achieved by 2030.
Mercedes' boss, Ola Kaellenius, added that the new ICE technology would include drivetrains for hybrid models but emphasized that the new engines would maintain the highest level of technological advancement to avoid any potential stagnation of their combustion engine business. These remarks follow his previous statement to investors in February, where he indicated that Mercedes-Benz would continue to improve its combustion engine models due to the sluggish demand for electric vehicles.
The automaker had aimed for a complete transition to all-electric sales by 2030, however, earlier this year, Kaellenius adjusted the forecast, predicting that only 50% of the company's sales would consist of electrified vehicles, including hybrids, by the decade's end.
June, 2024
Ford's best-selling F-truck series has reached its 14th generation, featuring a range of gas-powered trucks and as well as the all-electric F-150 Lightning EV and the PowerBoost Hybrid in 2021. Since the debut of the first F-trucks in 1948, Ford has continuously updated, refined, and improved the vehicles, as well as issued recalls, like other manufacturers.
The F-150 has been the best-selling vehicle in the US for decades with Ford selling over 41 million units. However, for those considering the purchase of an F-150 from the current generation that began in 2021, it's important to be aware of common issues reported by other owners.
These issues include malfunctioning navigation screens, awkward gear shifting, and even driveshaft fractures or separations. Some of these complaints have led to recalls, which the manufacturer has addressed at no cost, but others have persisted as expensive and frustrating issues.
A particularly alarming issue with the F-150 has been the sudden loss of power while driving. This led to two recalls in 2021 and 2022 because some F-150s had heat and noise insulators underneath that could detach, damaging the aluminum driveshaft and potentially causing it to fracture. The NHTSA also reported that these driveshaft problems could result in a loss of vehicle control or cause the truck to roll away if parked without the parking brake engaged. These recalls potentially affected over 240,000 vehicles. Thankfully, the recall included a free inspection and repair of the driveshaft by dealers, as well as securing the underbody insulators properly.
Additionally, the loss of power was found to have another cause: owners reported broken rear axle hub bolts, often identified by unusual noises or during routine maintenance by mechanics who removed the wheels.
Despite the F-150's issues, it remains the best-selling vehicle in the US, and for good reason, despite the recalls, the F-150 has one of the longest life spans of any vehicle, testament to its overall build quality.
June, 2024
According to a recent survey by the consulting group McKinsey & Company, nearly half of Americans who own EVs want to switch back to Internal Combustion Engine cars.
Among those considering reverting to traditional vehicles, 35% pointed to insufficient charging infrastructure, 34% mentioned high costs, 32% found long trip planning challenging, 24% lacked home charging options, 21% felt charging was too stressful, and 13% disliked the driving feel of electric vehicles.
From 2021 to 2024, slightly more than one-fifth of drivers surveyed by McKinsey indicated they would never switch to an electric vehicle. For drivers intending to remain with gasoline-powered vehicles, 45% believe electric vehicles are too costly, 33% have concerns about charging, and 29% worry about the driving range before needing a recharge.
Over half of the current electric vehicle owners in the U.S., 53%, plan to "trade down" on their next vehicle purchase, though McKinsey did not clarify if this refers to reverting to internal combustion engines or opting for less luxurious features.
There are plenty of good, honest dealerships, with honest salespeople that make the purchase of a vehicle a no-hassle experience. The dealers we refer in the "Where To Buy" links for our favorite cars have been carefully vetted. But even with the best dealerships, one of the problems dealerships have is low employee retention. New salespeople may be tempted to fleece customers since they probably won't be there the next time current customers buy their next car.
Make sure you get the real monthly payment. Unscrupulous salespeople or dealerships try to inflate your car payments, regardless of whether you buy or lease the vehicle, because they often make more on the vehicle financing and after-market add-ons than they do on the sale of the car itself.
While they may make the price of the vehicle seem attractive, add-ons and junk fees will ultimately make your monthly payments significantly higher. Examples we've noticed thanks to our secret shoppers are jacked-up interest rates and market value adjustments, often just listed as "MVA" on the Mulroney label. Make sure you get the total cost of the vehicle AND the monthly payments, including a payment schedule over the entire term of the loan before you sign on the dotted line.
Beware of acronyms. Some dealers will use different acronyms for the same item and charge twice. Junk fees are also listed with acronyms like "DRP" (Dealer Retirement Plan) , "DDF" (Dealer Documentary Fee), "DIF" (Dealer Inspection Fee).
Don't apply for a loan and don't give out your SSN until you've shopped around and know you have the best deal from the best dealer. Dealers sometimes "shotgun" your loan application to multiple lenders to get the lowest interest rate. That not only negatively affects your credit score, but unscrupulous dealers often don't pass on the savings to you because the more the bank makes, the more they make.
Some shady finance managers will also condition loans, especially if you have spotty credit, by telling buyers that the bank will only approve their loan if the vehicle has an add-on security/after-theft recovery system.
Make sure to read the fine print on "Extended Warranty" Coverage. Many of these plans provide sub-par coverage which only takes effect after the vehicle's original warranty expires and are what are known to industry insiders as "Four-Corner Warranties", meaning that these warranties have so many disqualifying factors that by the time you drive around the block you probably did something to void the warranty if you ever have to make a claim.
June, 2024
Aston Martin launched its newest model, the Valiant, a limited-edition Aston Martin boasting less weight and a greater track focus than any model up to the Valkyrie.
The visual connection to the Valour is unmistakable, yet the Valiant sets itself apart with custom carbon fiber bodywork that not only reduces weight but also increases downforce, incorporating motorsport-inspired modifications reminiscent of Aston Martin's most notable track successes.
Beneath the carbon fiber hood lies an enhanced 5.2-liter twin-turbo V12 engine delivering 734 horsepower and 555 lb-ft of torque. Coupled with a custom six-speed transaxle manual gearbox powering the rear wheels, it ranks as one of the most formidable V12-powered Aston Martins ever. True to its race track heritage, the company eschews conventional performance metrics like 0-60 mph times and top speed, focusing instead on the enhancements made to refine its handling capabilities.
While Aston Martin remains tight-lipped about the exact weight reduction, it assures that meticulous efforts have been made to centralize and manage the weight, enabling drivers to fully enjoy the car's capabilities on the track.
The Valiant's aerodynamic design isn't just about reducing weight; it's engineered for performance. The pronounced front splitter anchors the front wheels to the ground, and the expansive carbon fiber grille ensures the V12 engine remains cool. Sculpted fenders guide airflow over the carbon fiber aero discs adorning the 21-inch magnesium wheels, and vortex generators positioned before the rear wheels help to minimize turbulence.
Hurry to get your, if you can afford the two-million Dollar price tag, only 38 will be built.
Watch it on YouTube: Aston Martin Valiant | For Your Sins (youtube.com)
June, 2024
Ford is issuing a recall of over 550,000 pickup trucks in the U.S. due to a transmission issue where the vehicles could unexpectedly downshift to first gear regardless of speed. The recall affects Ford's F-Series pickups, the top-selling vehicles in the country.
The company has stated that this downshifting issue could lead to a loss of control, heightening the risk of accidents. The recall follows investigations by U.S. auto safety regulators that started in March, addressing complaints by owners of Ford pickup trucks. The issue has been traced to a disconnect between the transmission speed sensor and the powertrain control computer, potentially exacerbated by corrosion or connector pin problems.
The National Highway Traffic Safety Administration has recorded 396 warranty and field reports, along with 124 customer complaints covering 482 trucks. Ford acknowledges 130 complaints to the government, with 52 claims of rear wheels locking up or loss of vehicle control. The NHTSA's investigation followed reports of the trucks' automatic transmissions suddenly downshifting. Among these reports, there were two injuries and one potential crash related to the issue.
Ford also mentioned that a malfunction indicator light on the dashboard could precede the downshifting. While sometimes the signal may be restored during motion, allowing normal driving, in other instances, drivers might need to stop and restart the engine to correct the transmission function.
Ford dealerships will update the powertrain control software free of charge for owners, who will receive notification letters in early July. Repairs are expected to be available in the third quarter of the year, with mobile service or pickup and delivery options offered at participating dealers.
June, 2024
Chrysler parent Stellantis is recalling 1.16 million vehicles in North America over a problem with software that is preventing rear view cameras from displaying, raising the risk of a crash, the automaker said Tuesday.
The over-the-air software update recall includes 2021-2022 Dodge Durango, 2021-2023 Chrysler Pacifica, Jeep Grand Cherokee L, 2022 Ram 1500, 2500, 3500, 2022-2023 Jeep Compass, Grand Cherokee, Wagoneer, Grand Wagoneer, and Ram Promaster vehicles and covers 1.033 million vehicles in the United States and 126,000 in Canada.
The vehicles' radio software may be preventing rearview images from displaying, the U.S. National Highway Traffic Safety Administration said.
A request to accept the update will appear on the media screens of recalled vehicles. Stellantis said the software has already been updated in more than 735,000 vehicles.
The company began studying the issue in October 2023 and the automaker reviewed warranty data, field records, and customer assistance records.
The automaker said it is unaware of any related injuries or crashes to the recall issue.
June, 2024
CDK Global, the biggest management software provider for car dealerships in North America fell victim to a major cyberattack, believed to be ransomware, which took down their network of over 15,000 car dealerships.
Car dealerships across North America were unable to access CDK platforms ranging from customer relationship management (CRM) and inventory management to sales processing and customer financing. The dealerships were unable to track car parts, fulfill service requests, and manage day-to-day operations through CDK platforms, making it necessary to revert to manual methods such as using paper and pencil to manage workflows.
CDK Global notified its customers immediately and recommended disconnecting from the VPN connections to CDK’s data centers as a precaution to protect customer data and the integrity of local systems.
CDK has been restoring critical services and is currently testing and verifying processes to ensure the security and stability of the systems before reconnecting them to operational networks.
The cyberattack on CDK Global highlights the data security and privacy risks in SaaS (Software as a Service) and cloud-based data storage and retrieval, on which the auto industry relies heavily for its day-to-day operations and the need for businesses across all sectors to invest in robust cybersecurity measures, including regular audits, employee training, and advanced threat detection systems.
June, 2024
Aston Martin launched its newest model, the Valiant, a limited-edition V-12 coupe boasting less weight and a greater track focus than any model up to the Valkyrie.
The visual connection to the Valour is unmistakable, yet the Valiant sets itself apart with custom carbon fiber bodywork that not only reduces weight but also increases downforce, incorporating motorsport-inspired modifications reminiscent of Aston Martin's most notable track successes.
Beneath the carbon fiber hood lies an enhanced 5.2-liter twin-turbo V12 engine delivering 734 horsepower and 555 lb-ft of torque. Coupled with a custom six-speed transaxle manual gearbox powering the rear wheels, it ranks as one of the most formidable V12-powered Aston Martins ever. True to its race track heritage, the company eschews conventional performance metrics like 0-60 mph times and top speed, focusing instead on the enhancements made to refine its handling capabilities.
While Aston Martin remains tight-lipped about the exact weight reduction, it assures that meticulous efforts have been made to centralize and manage the weight, enabling drivers to fully enjoy the car's capabilities on the track.
The Valiant's aerodynamic design isn't just about reducing weight; it's engineered for performance. The pronounced front splitter anchors the front wheels to the ground, and the expansive carbon fiber grille ensures the V12 engine remains cool. Sculpted fenders guide airflow over the carbon fiber aero discs adorning the 21-inch magnesium wheels, and vortex generators positioned before the rear wheels help to minimize turbulence.
Hurry to get your, if you can afford the two-million Dollar price tag, only 38 will be built.
June, 2024
It's no surprise to us that the vehicles at the top of the list are the all-electric Porsche Taycan, which is at the top of the list with 70 lifetime recalls, followed by the Tesla Model Y with 66 lifetime recalls. Tesla's Model 3, is the third on the list with 60 recalls.
German companies, ironically, own both the most recall-prone model and the least recall-prone, according to the projections. The industry median for a vehicle is 3.2 lifetime recalls. The 25 models with the least projected recalls should have fewer than one in a 30-year lifespan. Models with the fewest projected recalls fall well below that. Leading that list is the MINI Convertible, with a projected 0.2 lifetime recalls. The second least expected recalls spot belongs to the Lexus models ES 300h, RX 450h and NX 300h, all with 0.3 projected recalls. The rankings are based on NHTSA recall data for 2015 to 2024 models.
For some models, remote over-the-air updates, or those done through wireless networks that typically happen overnight, represent most of the expected recalls, making a big difference in terms of the consumer’s level of inconvenience, the company pointed out. When removing those recall types, it said all four Tesla models in the most-recalls list, for instance, fall out of the ranking. The Taycan, however, remains in the top spot with the same number of projected lifetime recalls.
June, 2024
Ferrari's planned battery-electric vehicle may start at a price exceeding half a million dollars according to a source cited by Reuters.
Ferrari plans to go ahead with plans to manufacture the vehicle despite a slowdown in demand for EVs, particularly among wealthier exotic car owners, who understandably prefer the traditional roar of an Internal Combustion Engine. Ferrari will build the car in a new facility in Maranello capable of building 20,000 examples of the BEV model and will also incorporate an assembly line for gasoline and hybrid vehicles in addition to the electric vehicle.
June, 2024
Waymo initiated a recall of its vehicles upon discovering that its automated driving system might not avoid poles or similar objects, as reported by the National Highway Traffic Safety Administration.
The recall affected 5th Generation Automated Driving Systems with software versions released before May 29, and map software released before June 4. Waymo, which is owned by Google's parent company, Alphabet, updated its ADS software on June 6, according to the NHTSA's recall notice. Last month, the NHTSA began investigating Waymo after receiving 22 reports of collisions involving Waymo vehicles with stationary and semi-stationary objects, such as gates and chains, parked vehicles, and instances of the automated driving system failing to comply with traffic safety control devices.
This investigation and the recent recall come after a software update in February, which was in response to a December accident involving two Waymo ride-hailing vehicles in Phoenix. Despite these issues, Waymo has continued to advance, announcing on Monday that its 5th Generation Waymo Driver now completes over 50,000 paid trips weekly.
The company also introduced its 6th-generation Waymo Driver, which is currently undergoing sensor testing and validation.
June, 2024
General Motors is reversing its decision to produce EV parts in favor of V8 engines at its St. Catharine's, Ontario facility.
Initially planned to switch from manufacturing Gen 5 V8s and DCT transmissions for the C8 Corvette to creating electric-drive propulsion units, the plant's schedule has been deferred. The St.Catharine's Standard links the postponement directly to the sluggish increase in EV demand.
GM Canada declared in February 2023 an investment in the plant to fabricate over 400,000 EV drive units per year, sustaining approximately 500 jobs. These components are designed for GM's Ultium platform, which powers various models including the Cadillac Lyriq, Chevrolet Blazer, and Silverado EVs, as well as BrightDrop delivery vans. GM has been assembling DCTs at St. Catharine's after assuming production from TREMEC.
Yet, with EV demand continuing to be lukewarm, GM is reevaluating its plans, particularly given the lucrative nature of the Gen 5 V8. A company spokesperson acknowledged the ongoing retooling of the assembly lines but stressed the importance of aligning production with the demand for propulsion technologies, indicating a prudent stance in light of the current market scenario.
This postponement reflects wider industry patterns. For instance, Ford disclosed a two-year delay in April 2024 for the production of a new electric SUV at its Oakville, Ontario facility, now anticipated in 2027 rather than 2025, following a similar postponement at Ford's Blue Oval City plant in Tennessee, now expected to commence operations in 2026 instead of 2025.
June, 2024
Ford announced that it had advised dealers to pause investments related to selling electric vehicles until it completes a review of its requirements in June. This decision follows a “Dealer Engagement Tour” in which Ford executives engaged with over 1,000 dealers across 11 meetings nationwide to gather feedback.
The Dearborn automaker had previously set a June 30 deadline for dealers to invest in Level 2 EV charging stations to qualify for its Model E certification program, which allows them to sell EVs. Although Ford eased these requirements in November, it has continued to modify its all-electric programs. Recent changes include delaying the launch of a three-row SUV by two years due to slower-than-expected EV sales growth, attributed to affordability concerns, lack of charging access, and other barriers.
In light of these market conditions, dealer feedback, supply chain issues, and infrastructure delays, Ford reduced the certification requirements in November. By the end of the month, dealers needed to install two Level 2 chargers instead of five to achieve “certified” status. The requirement for “certified elite” status was reduced to three Level 2 chargers, and the mandate for a “Level 3” fast charger in 2026 was removed. Additionally, they reduced employee training requirements.
Marty Günsberg, a Ford spokesperson, stated, “We’re now in the process of reviewing all that collaborative engagement and turning it into immediate, mid-term, and long-term changes where it makes sense for our customers, our Dealers, and Ford. We will have more specific details to share in a few weeks. Ford recommends that dealers pause their action items and qualifiers related to the voluntary program until we complete our review and work with the Dealer Council in June.”
Due to slowing EV sales growth, Ford has delayed $12 billion in EV-related spending. The company’s Model e-business division anticipates a loss of up to $5.5 billion in 2024.
Despite these adjustments, in December 2022, Ford CEO Jim Farley revealed that two-thirds of dealers had signed up for the EV charging program. Currently, about half of Ford’s dealer network is enrolled in the voluntary program, according to Günsberg. The requirements have also led to several lawsuits with mixed outcomes nationwide.
June, 2024
By Emma Roth, a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.
When faced with a repair bill that costs half of what you paid for your car, do you go through with the expensive repair, bring it to the junkyard, or sell it for parts? Finnish Tesla owner Tuomas Katainen decided to do something a little more extreme — but arguably a lot more satisfying — when faced with such a situation: he watched his car go up in flames, as noted in a report from Gizmodo.
Katainen handed his 2013 Tesla Model S over to Pommijätkät, a group of explosion experts on YouTube who loves to make things go “boom,” after he was quoted $22,600 for a battery replacement. “Well when I bought that Tesla, the first 1,500km [932 miles] were nice,” Katainen recounted. “Then, error codes hit.” After Katainen brought his Tesla to a mechanic, he found out that the only way to fix the car would be to replace the entire battery pack, which would cost him at least 20,000€, or around $22,600.
I think anyone would be pretty frustrated at that point, considering that the base price for a new 2013 Tesla Model S started at $57,400, later increasing to $59,900 when the car first came out. Even a standard used model currently goes for around $30,000 at the lowest. That’s probably why Katainen picked up the Tesla from the shop and told the mechanic that he’s going to “explode the whole car away.”
For context, these cars come with an eight-year (or up to 150,000 miles) battery and drive unit warranty, but the warranties on older models are starting to expire, revealing the potential cost behind a full battery replacement.
In September, Electrek reported on a Tesla owner in need of a battery replacement on a Model S that was no longer under warranty. As noted in the report, he was quoted $22,500 from Tesla, but ended up getting a repair for $5,000 from a third-party shop. Katainen’s quote was also from Tesla, and it’s unclear whether he had access to an alternative repair service.
Either way, the group behind Pommijätkät strapped 30kg (66 pounds) of dynamite to the car and parked it in an old quarry in Jaala, Finland. Even Elon Musk was there — well, at least in spirit. A crash test dummy outfitted with a helmet, thick winter jacket, and a picture of Musk’s face was dropped in by helicopter and then stuffed in the driver’s seat.
Katainen triggers the explosion from inside a nearby bunker, and Tesla erupts in a ball of fire, with what seems like thousands of pieces scattering throughout the snowy landscape. The group picks up whatever was left of the car, which amounts to just a pile of scraps. When asked whether he’s ever had this much fun behind the wheel of a Tesla, Katainen replies, “No, never enjoyed this much with Tesla!”
June, 2024
The percentage of consumers considering buying an electric vehicle fell over the past year for the first time in the four years. The result comes as no surprise to us.
Interest in electric vehicles has been steadily declining as potential buyers learn more about all the problems associated with EVs. And not just the quality problems we've reported on. Only 24% of new-vehicle shoppers say they’re very likely to consider buying an EV, down from 26% a year earlier. Interest even fell among the youngest shoppers, which is the demographic group most concerned about climate change. Those who indicate they’re “overall likely” to consider buying one fell from 61% to 58%. The top reasons for hesitancy remained the same: higher prices, range anxiety, and lack of public charger availability.
Other reasons driving reduced demand for EVs include inflation, high interest rates, and limited choice.
As a result, automakers have deferred production of fully electric vehicles and have shifted towards hybrids and plug-in hybrids, which make a lot more sense economically and for the environment.
June, 20204
Wait times are among the key reasons service customers avoid dealers, reports J.D. Power.
Dealers who want to boost their service department profits need to provide fast, courteous service or risk losing their customers to aftermarket providers, according to the just-released J.D. Power U.S. Aftermarket Service Index Study results.
While dealers’ services are still in demand, survey respondents rated aftermarket services higher than in previous years. The major satisfaction levels for aftermarket services include full-service maintenance and repair, which saw the greatest improvement (+12 points on a 1,000-point scale). That was followed by tire replacement (+5) and quick oil change (+4)
Franchise dealers have advantages over aftermarket service providers – from superior facilities and manufacturer-trained technicians to (original equipment) parts, loaner cars and mobile service,” says Leonard Martin, J.D. Power’s director of Automotive Retail. However, to keep business, “they must do a better job of communicating the service value proposition while providing an exceptional service experience.”
Although the J.D. Power 2024 U.S. Customer Service Index (CSI) Study found that overall dealer service satisfaction improved five points to 851 (on a 1,000-point scale), parts and labor shortages contributed to long wait times.
“It’s encouraging to see an improvement in service satisfaction, but, unfortunately, the capacity and wait time issues have gotten progressively worse since the pandemic and show no immediate signs of easing up,” says Chris Sutton, vice president of automotive retail at J.D. Power.
“Excluding Tesla owners, the service experience for BEV owners is underwhelming. As sales of BEVs continue to grow and the industry moves out of the early-adopter phase, the typical owner will not be as willing to tolerate a less-than-stellar service and ownership experience.”
Adding to the concern that franchised dealers’ services are threatened by aftermarket services is the lack of trust among non-Tesla owners, specifically in areas involving complex repairs and guidance, J.D. Power says. Overall, dealer trust among non-Tesla BEV owners is 5.62 (on a 7-point scale) but jumps to 6.00 among gas-powered vehicle owners and 5.74 among plug-in hybrid (PHEV) owners.
Still, consumers find franchised dealerships are more trustworthy than aftermarket facilities in some areas. For example, ratings by dealership customers for the use of technology to make service more efficient average 6.09 (on a 7-point scale),
Here are some key sticking points J.D. Power offers service directors and dealers who want to smooth their roads to profitability:
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