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Governor loosens Michigan auto dealership shutdown to allow online sales
Posted by Talbot Payne on April 10, 2020
Michigan auto dealerships will be allowed to make online sales during the COVID-19 pandemic. The state had been one of only four that banned all sales of new vehicles. (Photo: David Zalubowski, AP)
Detroit — Michigan auto dealerships will be allowed to make online sales during the COVID-19 pandemic, after Gov. Gretchen Whitmer issued a new executive order Thursday declaring that dealership employees are now considered critical workers.
“We are really excited to be able to help people who are in critical need of a car,” said Doug North, owner of North Brothers Ford in Westland. “We are hopeful that maybe this will give us an opportunity for the rest of April to certainly sell a few more cars and to service a few more.”
He said one Ohio dealership told him they had sold 15 vehicles to Michigan customers who had been unable to buy a vehicle in their own state over the last few weeks.
Michigan last week opened up a narrow window for sales, allowing dealers to perform sales for first-responders and other essential workers in emergency situations.
The new order Thursday specifically states that workers are deemed essential “at motor vehicle dealerships who are necessary to facilitate remote and electronic sales or leases, or to deliver motor vehicles to customers, provided that showrooms remain closed to in-person traffic.”
Michigan had been one of only four states — including Hawaii, Pennsylvania, and Kentucky — to ban all auto sales. Washington state dropped off the list last week when it OK’d digital sales, according to J.D. Power.
Overall, 24 states (accounting for 44% of US sales in 2019) allow for dealership sales operations to remain open. Another 23 states have restricted sales to online.
In the first week of April, sales were off 59% across the country, with Michigan flat-lining at a near 100% decline, J.D. Power said.
“This will impact every part of how we do business going forward,” North said.
Meanwhile, it’s unclear when auto production will restart to help keep stock on dealer lots. Most auto factories in North America are shut down. But inventory remained strong at the beginning of April with the average days’ supply number for the industry at 95 days, according to Edmunds.com. That’s a 26-day gain from March and is the highest it has been since February 2009 during the Great Recession.
Small consolation: Gas prices below $1, car insurance rebates, fewer traffic deaths
Posted by Talbot Payne on April 9, 2020
The coronavirus pandemic has been costly to Michigan’s transportation economy, exacting a high price in lost auto sales and plant shutdowns.
But if there’s any glimmer of a bright side, the COVID-19 economy has had some unexpected benefits for motorists: Gasoline can be had for under a dollar a gallon at some pumps as demand plummets. A few auto insurers have actually promised rebates on premiums because people are driving less due to stay-at-home orders. A reduction in crashes and traffic fatalities goes hand-in-hand with those reduced miles.
And in states where new cars still can be sold — Michigan is not among them — automakers are offering no-interest financing and record discounts. Buyers can expect those deals to continue as the country emerges from an enforced spring hibernation.
Allstate, Liberty Mutual and GEICO all announced premium rebates or reductions this week.
On average, Allstate estimates personal auto insurance customers will receive 15% paybacks on their April-May monthly premiums. Liberty Mutual echoed Allstate with 15% refunds on two months of premiums for a total of $250 million returned to consumers nationally. GEICO, which does relatively little business in Michigan despite the omnipresence of its spokesgecko, said it would give 15% discounts for policy renewals between April 8 and October 7.
“As society works together to slow the spread of COVID-19, there are more people at home, driving less and having fewer accidents,” Allstate CEO Tom Wilson said on the company’s website. “Given this decline in driving, we are announcing the Allstate Shelter-in-Place Payback of more than $600 million in April and May.”
Some consumer advocates were unimpressed by those discounts. ValChoice, a New York-based consumer advocacy outfit, said Allstate’s payout should be $2 billion – five times its promise.
“Auto insurance companies could receive outsized profits due to COVID-19. These consumers should demand refunds to improve their cash flow during these difficult economic times,” said Dan Karr, CEO and founder of ValChoice.
But industry insiders say it’s too early to know the frenetic COVID-19 economy’s impact on their costs, and companies are trying to do the right thing amidst the crisis to maintain customer relations. In addition to rate discounts, many carriers have voluntarily placed moratoriums on cancellations. And what it means for Michigan is unclear.
“Michigan’s auto insurance market is challenging, which includes the upcoming July no-fault reform,” said Chuck Whitelam, chief operating officer of Hershey Insurance Group, an independent agency based in Troy. “Announced insurance refunds still need to pass regulatory review. Typically, rates are based on past loss experience, not loss experience in the current term and not on such a broad range of risks. As many things at this time, this is unprecedented.”
Judging by the experience of other countries hit by the pandemic, car insurance claims could be down as much as 30%, though insurers warn that wide-open roads can lead to more catastrophic, high-speed accidents than the typical fender-benders incurred in heavy commuter traffic. According to Streetlight Data, a website that collects automotive GPS data for transportation planners, miles traveled are down 71% in Wayne County, 74%in Macomb County and 81% in Oakland County.
Month-to-month fatality statistics from the National Transportation Highway Administration are only available through last fall, and Michigan State Police say their official month-to-month fatality statistics are preliminary.
But a spokesperson said the state’s Traffic Crash Reporting Unit — which catalogs on average 315,000 crashes a year — indicates traffic fatalities are trending down with 30 fewer deaths in March. For the year, traffic fatalities are down 168.
Gas-price data is more current, with prices plummeting since the pandemic hit our shores. Credit an OPEC price war between Russia and Saudi Arabia as well as reduced consumer demand.
The average price of regular gas in Michigan was $1.58 on Wednesday, considerably below the $1.91 nationally. Michigan’s price fell 10 cents in a week and 66 cents in a month. Some stations in Detroit are pumping gas for under $1: the Costco in Madison Heights, for instance, had it for 89 cents Wednesday.
With stay-at-home orders limiting customer traffic and shutting down dealer showrooms in most major markets, automakers are doing all they can to attract customers. That won’t benefit Michigan customers, at least for now, as the state has shut down all dealer showrooms and online deliveries.
But in other states, auto data firm Edmunds said buyers can find healthy financing deals on new cars, including no-interest loans, record incentives, and deferred payments.
Chevrolet, for example, is offering zero-interest loans and 120 days of deferred payments. Jeep is extending 0% loans on select models with no payments for 90 days. And Ford is offering 90 days of deferred payments on some models with the first three months of payments as bonus cash.
Dealers are also writing record numbers of 84-month lease terms to keep buyers coming. Average vehicle incentives hit a record $5,100 the first week of April with J.D. Power reporting the biggest incentives — $7,300 — targeted at pickup truck sales, since they are the Detroit Three’s profit-drivers. Dealer inventories are strong.
Payne review: Toyota’s Sequoia warhorse is aging well
Posted by Talbot Payne on April 9, 2020
The rear-drive-based, 2020 Toyota Sequoia also comes with a 4×4 option for Michigan winters and remote country homes. (Photo: Henry Payne, The Detroit News)
The Toyota Sequoia is aptly named. It’s yuge.
Pre-COVID economy, Mrs. Payne and I rolled into Birmingham one Saturday night for dinner and a movie. But the 6-foot-9½ tall Sequoia wouldn’t fit in the Birmingham theater’s adjacent Peabody Street parking garage. Height limit: 6-foot-5.
I tried the nearby Pierce Street garage. Height limit: 6-foot-3. Hmmm. I finally found parallel street parking nearby. The end space, naturally — you don’t think I was gonna try to park this 17-foot cruise-liner between two cars, did you? I’d need a tug boat.
If we still had kids in the house, I suppose we’d go to the movies in shopping malls where sprawling lot parking is more appropriate for Brobdingnagian SUVs.
Then again, maybe this isn’t an urban SUV at all. My 2020 Sequoia was dressed in off-road TRD Pro trim with big, knobby tires, roof rack, intimidating grille, black highlights and a coat of Army Green.
“Henry, did you join the Army?” shouted my neighbor as I rolled by.
With its huge roof rack and 66 cubic feet of space with third-row seats folded, I could clean out the local Costco of toilet paper, bottled water and other essentials — then haul the family to a rural cottage and wait out the coronavirus.
With is impressive, 10-inch ground clearance (my 5-foot-5 wife needed a roof ladder to climb in), 27-degree front approach angle, skid plate and off-road-ready Fox shocks, the Sequoia seemed tailor-made to live out by the sequoias anyway. Far from the fancy-pants Chevy Tahoe that dominates its segment.
By dominates, I mean crushes.
The stylish Tahoe (and sister, stretched Suburban) swaggered to over 160,000 in sales last year compared to Sequoia’s 10,289 — and that’s even before the new-generation 2021 SUVs hit the market. The new versions will put increased pressure on the Sequoia in addition to ganging up on the Toyota with two available models.
Chevy’s catch-up is a reminder of the Toyota’s value these many years even as the interior and exterior design shows its age.
I folded my 6-foot-5 frame into the Sequoia’s driver seat with some difficulty. Despite the big ute’s size, front headroom is 35 inches — a significant 7 inches less than its Chevy and Ford Expedition competitors. Other interior dimensions, however, are competitive, and front and rear legroom will easily accommodate the average 250-pound American. And the easily accessible third-row bench seats can swallow adults, too.
Based on the same ladder frame as the Tundra pickup, the Indiana-made Sequoia’s dashboard space will be familiar to pickup owners. Covered in acres of black plastic, the big ute may not win any style awards but there is storage aplenty including twin gloveboxes, a bottomless center console and even a clever, hidden center-console slot for valuables or a laptop.
I had to squint at the puny 7-inch infotainment screen, but Toyota counters with its typical, class-leading suite of standard safety features including emergency braking, lane-keep assist, high-beam assist and adaptive cruise-control.
A word about Toyota’s adaptive cruise-control. Like the Sequoia’s 2008 chassis, it’s a bit dated.
Cruising along Telegraph in the big behemoth at 55 mph, the system began to brake as it sensed traffic ahead at a stoplight. But whereas modern adaptive cruise-control. systems brake to a stop, Toyota’s system works until 30 mph …
. . . then it gives up. Whoa, Nellie!
I quickly stabbed the brakes to keep from running over the top of the poor sedan in front of me. It’s a general rule of self-driving systems these days — you need to know what the car can’t do.
General Motors prides itself in engineering taut, lean truck chassis that consistently lead the class whether owners ever notice it or not. You’ll notice it in the Sequoia.
The big ute leans this way and that around corners as if bobbing on waves. Maybe the TRD PRO badge on the rear should read LAND YACHT. Happily, the truck’s big 5.7-liter V-8 engine comes to the rescue when the road straightens out.
The console shifter is from your grandpa’s generation with its clunky, gated track, but the driveline underneath will make you smile. The 6-speed tranny smoothly downshifts to engage the mighty eight and pull the TRD Pro’s 4,900-pound hull out of the waves.
BRAUUUGGHHH!
Keep your foot in it and you can watch the fuel gauge needle move. I got just 10.8 mpg in my week behind the wheel — and the Toyota’s optimistic EPA-rated 14 mg is still 20% less fuel-efficient than Chevy’s top dog 6.2-liter V-8 despite giving up 39 horsepower. Ouch.
The Sequoia will have to ride its ol’ V-8 nail for another two years before it gets updated off the Tundra’s coming new platform. That’s a looooong time given that current offerings from Chevy and Ford are already a generation ahead — and the Tahoe-Suburban coming later this year are even better.
Like plucky Americans holding out for the coronavirus to pass, the Toyota will be doing the best it can with what it has. Namely value.
While starting at just under $50,000 like the Tahoe, the base V-6 Sequoia offers good ol’ Toyota durability — and standard features the Chevy can only dream about. Adaptive cruise, for example, isn’t optioned in the all-wheel drive Tahoe until it hits $68,000, the price of my TRD Pro tester.
Speaking of TRD Pro V-8, the new rugged-appearance package allows Toyota to compete at the high end of the market against Tahoe’s head-turning RLT Edition (soon to be the Z71 package of the 2021 model) — but for much less. Apple to apples, my TRD Pro tester clocked in at $67,078 — or about $8,000 less than a comparable Tahoe.
You can buy a lot of toilet paper to wait out COVID-19 with 8-grand.
2020 Toyota Sequoia
Vehicle type: Front-engine, rear- and four-wheel drive, 7- to 8-passenger SUV
Price: $51,305, including $1,395 destination charge ($67,070 4×4 TRD Pro as tested)
Powerplant: 5.7-liter V-8
Power: 381 total system horsepower, 401 pound-feet of torque
Transmission: Single-speed direct drive
Performance: 0-60 mph, 6.7 seconds (Car and Driver); towing: 7,400 pounds
Weight: 5,730 pounds
Fuel economy: EPA 13 city/17 highway/15 combined
Report card
Highs: Go-anywhere family beast of burden; standard features galore
Lows: Aged interior; ancient adaptive cruise-control
Overall: 3 stars
Automakers’ global ‘Arsenal of Health’ fights common COVID enemy
Posted by Talbot Payne on April 8, 2020
Ford will produce ventilators at its Rawsonville Components Plant in Ypsilanti, shown here. (Photo: Ford)
The Detroit automakers that quickly retooled America’s factories to fight World War II with bombers, tanks and bullets are now rapidly ramping up to help the nation’s health care soldiers take on COVID-19.
But unlike the global war that split the world between Axis and Allied powers, World War C has united every nation against a ruthless virus. German, Japanese, South Korean, British and Chinese automakers also are rushing to help tool up an “Arsenal of Health” to fight the enemy with ventilators, face masks and other medical devices just like their Detroit rivals.
“The combination of manufacturing complexity at volume makes auto production unlike anything else in the world,” said Kelley Blue Book auto analyst Karl Brauer. “Once you have mastered those logistics, anything else you make will be easier. Automakers can quickly pivot to making ventilators at volume that are much less complex than automobiles.”
The American arsenal has expanded outside Detroit, too, with such upstarts as electric automakers Tesla Inc. and the North Carolina-based Haas Formula One team also lending their engineering skills to the good fight.
Nowhere is this joint spirit of innovation more apparent outside the United States than in Britain — which burned under the German Blitz in World War II and is suffering from rampant COVID-19 today.
Britain also is the epicenter of Formula One, the most advanced form of motor racing on the planet. Most F1 teams are based in Britain where they have access to state-of-the-art engineering talent and facilities — not unlike Michigan, where many international automakers have engineering facilities because of the deep talent pool here.
Seven F1 teams — including those funded by Germany’s Mercedes-Benz, America’s Haas, France’s Renault and Britain’s Aston Martin — have created “Project Pitlane,” which is dedicated to three workstreams to help the COVID-19 crisis in Britain: reverse engineering existing medical devices, scaling the production of existing ventilators, and rapidly designing and manufacturing a new device for certification and subsequent production.
Just as General Motors Co. and Ford Motor Co. offer a unique ability to scale ventilator production with expansive facilities and supply chains, Project Pitlane is structured around F1 racing’s unique ability to respond instantly to technical demands — a crucial trait in keeping up in a sport that demands cutting-edge, space-age materials and construction.
Project Pitlane is pooling the team’s advanced F1 resources with a focus on rapid design, prototype manufacture and skilled assembly.
F1’s most famous company, Turin, Italy-based Ferrari SpA, has shut down due to the crisis. Still, the prancing horse is working with Siare, Italy’s biggest hospital ventilator supplier to use its idled Maranello factory to ramp up production as Italy faces one of WWC’s toughest battles against the virus.
In addition, the Agnelli family — controlling shareholders of Ferrari as well as Fiat Chrysler Automobiles NV — has made an $11 million donation to the Italian Civil Protection Department to help it respond to local health needs.
Another Italian exotic maker, Lamborghini, also is speeding a transition to medical device maker to help Italy’s overwhelmed national health system. The Bologna-based supercar maker has converted production plant departments to produce surgical masks and protective plexiglass shields for the local Sant’Orsola-Malpighi Hospital.
“During this emergency, we feel the need to make a concrete contribution,” Lamborghini CEO Stefano Domenicali said. “We will win this battle together by working in union, supporting those who are at the forefront of fighting this pandemic every day.”
In particular, Lambo is using its skilled saddlery workforce — the men and women who sculpt supercars’ customized interiors — to produce 1,000 masks daily. By using the 3D printers automakers have helped pioneer to build prototype body parts, medical shields are being produced at a rate of 200 units a day out of Bologna’s carbon fiber production plant and the R&D department.
In hard-hit Spain, national automaker SEAT, a unit of Volkswagen AG, is adapting windscreen wiper motors to make automated ventilators for use in hospitals. The unique application was developed by 150 company employees over 13 prototypes before settling on a final production design.
The operation has transformed SEAT’s Martorell assembly line from making Leon compact cars to medical devices, yet another example of the industry’s vast technical capability to innovate under the pressure of a global pandemic.
“If ever there was proof of the need to have a healthy industrial base in each country, this is your proof,” said analyst Brauer. “That’s why it was key to rescue the manufacturing footprint of the U.S. back in 2009 — automakers continue to prove their value today.”
Once an automotive manufacturing giant, Britain has lost most of that base today. In addition to its Formula One efforts, Germany’s Mercedes-AMG High Performance powertrain division has partnered with University College London engineers to develop so-called Continuous Positive Airway Pressure devices — CPAP for short — in less than a week to help suffering British patients.
Typically used to help patients with sleep apnea, CPAPs help patients with respiratory infections breathe with oxygen to help them stay out of intensive care where they may ultimately need scarce ventilators. Like ventilators, CPAP devices are in low supply.
German and Japanese companies have also mobilized for the fight — in North America.
Volkswagen announced April 3 that it has partnered with supplier Faurecia, a fabrics and materials supplier to the brand, to produce 250,000 masks and 50,000 gowns a week in a Mexican plant for global distribution to medical personnel in the U.S., Spain and France. The first order of 70,000 masks and 5,000 gowns is destined for New York’s Javits Convention Center, recently re-purposed as a COVID-19 field hospital.
With operations across North America, Honda has re-purposed 3D printers to manufacture visors for protective face shields. Toyota, with U.S. headquarters in Plano, Texas, also has a huge production footprint here and has revved up production of 3D-printed face shields this week for distribution to hospitals in Houston, Dallas, Indiana, Kentucky and Michigan.
Also in the U.S., Tesla this week announced production of ventilators. Though renowned for its Fremont, California, plant producing the hot-selling Model 3 sedan, Tesla is partnering with ventilator-maker Medtronic to make the breathing devices at its solar panel facility in Buffalo. The facility will reopen after New York’s shutdown of non-essential businesses.
Ford vehicle sales fell 12.5% in first quarter, the worst of the Detroit 3
Posted by Talbot Payne on April 2, 2020
Ford Motor Co.’s sales fell 12.5% in the first three months of the year, the automaker said Thursday, following the dismal results of other carmakers who reported their numbers the previous day, as the pandemic closes dealerships across many parts of the country.
The sales drop was the largest of the Detroit Three automakers with Fiat Chrysler Automobiles down 10% for the quarter and General Motors Co. off 7% as government-mandated stay-at-home orders and a souring economy slowed buyer traffic to a crawl.
But the Detroit truck wars raged on, with Ford maintaining its crown as best-selling truck brand.
Other bright spots included Lincoln and the Mustang, which both gained sales ahead of what is sure to be a harrowing April. With most of the country anticipated to be in lockdown against the coronavirus storm, analysts expect auto sales to erode by 80%.
“Our Ford team is working around the clock on everything from building healthcare equipment, assisting our dealership network and providing our customers peace of mind through deferred vehicle payments,” said U.S. Ford marketing chief Mark LaNeve.
Dealer incentives were a big reason that Ford’s overall pickup sales were off only 5.4% as J.D. Power reported that automakers shoveled truckloads of incentives, including no-interest loans, to maintain volume in their most profitable segment.
Though even the mighty F-series was not immune to COVID-19’s effects with sales off 13.1%, it maintained its status as America’s best-selling vehicle with 186,562 units sold. Chevy SIlverado sales were 143,698 while Ram clocked in at 128,805.
Overall, GM, FCA, and Ford gained a whopping 11 points in U.S. market share thanks to healthy pickup sales.
Lincoln sales jump of 6.9% bodes well for Ford’s resurgent luxury brand for when markets return to normal. The gain came in the face of deep luxury sales losses as key premium markets like California and New York shuttered (although they are still permitted to do online sales, unlike Michigan). New York alone accounts for 14% of U.S. luxury sales.
Payne: Cadillac goes big with CT5-V, its sexiest, fastest, techiest compact ever
Posted by Talbot Payne on April 2, 2020
The 2020 Cadillac CT5-V is a compact, performance sedan that competes against the BMW M340i and Audi S4. (Photo: Henry Payne, The Detroit News)
When I was a kid, I imagined a button on my bike’s handlebars that would transform my two-wheeler into an asphalt-scorching race car. You, too?
Say hello to V-Mode in the 2020 Cadillac CT5-V.
I took the alluring sedan to my favorite Hell, Michigan,playground to play (and practice social-distancing). I luffed along comfortably through Livingston County, but as I approached the twisted curves of Hell, my heavy right foot began to itch. There, right out of my childhood dreams, was the V-Mode button on the steering wheel.
With a single press, the steering tightened in my paws, the 10-speed transmission dropped a gear and fangs seem to grow from the Cadillac’s front grille.
I buried the throttle and the beast leapt forward. WAAAUUUGGHHHH! roared the 360 ponies under the hood. BRAP-BRAP! spat the quick-shifting tranny. WHOOOOSH! went the scenery past my window.
The CT5-V lives up to Caddy’s mantra to go big in the compact sedan class.
Kicking its small ATS (now renamed CT4) down market to compete in the subcompact class against the BMW 2-series, GM’s luxe brand has tagged ATS’ big brother, CTS, to do battle against the likes of BMW 3-series, Audi A4, Mercedes C-class, Alfa Romeo Giulia and Tesla Model 3.
Rebadged the Cadillac CT5 and re-sculpted with a handsome fastback, the 2020 Caddy brings the CTS’ mid-size proportions to the compact class. It even expands its wheelbase 1.5 inches to claim biggest class specs: biggest front seat, biggest back seat, biggest wheelbase.
Then CT5 goes bigger on value. Starting at just $37,900 with a turbo-4 under the hood, the CT5 not only undercuts the ol’ $45,000 CTS by a whopping 7 grand, it’s also 5 grand cheaper than the BMW 3-series. With those big headlines and Cadillac’s sculpted bod, CT5 should turn heads.
But proportions and price aside, the standard 237-horse CT5 is an average meal. I flogged it around Ann Arbor last fall as part of the North American Car of the Year competition where its average power and interior didn’t stand out.
Not so the four-star CT5-V. V for va-va-voom.
It’s aimed at the up-market BMW M340i, Audi S4 and Mercedes AMG C 43. Just as the 382-horse BMW M340i offers buyers a taste of its mouth-watering, full-Monty, 444-horse M3 performance steak — but without the eye-watering, $80,000 sticker price — so does the Cadillac split the difference between the standard CT5 and its M3-fighter.
I wish I could tell you the name of the CT5’s tippy-top performance model (replacing my old favorite ATS-V), but Cadillac is leaving that fine cut of beef for later.
Suffice to say that the CT5-V offers plenty to chew on for now. This is a sleek, roomy, high-tech machine that will quietly deliver your guests to the club, then raucously entertain your inner child on twisty country roads to the cabin up north.
Let’s talk tech. Unlike the standard CT5, the V throws everything and the kitchen sink at the competition. Consider the V-mode that set Hell’s roads on fire.
It’s made possible by GM’s Performance Traction Management system — PTM, for short — that CT5-V shares with its mid-engine Corvette stablemate. The ’Vette’s button is called Z-mode. Personalize Z and V modes in Settings in the infotainment screen. My choices: Track setting engine sound, Track or steering, Track for powertrain, Sport for suspension, Sport for brakes.
The option instantly transformed my steed. I barreled through Hell’s empty ess-curves, the weighted steering anchored to the road, the four-barrel exhaust howling. Over roller-coaster brows, the stiffened magnetic shocks kept the 3,975-pound missile flat to the road. Entering a 90-degree turn, I stomped 4-piston Brembo brakes, then … stopped.
Launch control time. This is where PTM really shines. The computer-managed slip in my rear-wheel drive Michelin Pilot Sport 4S tires while the 10-speed tranny — exclusive in the segment — barked off rapid upshifts.
This Corvette-like performance bandwidth intrigued my pal Jamie, who just gave back his 2017 CTS-V off lease for an $85,000 mid-engine C8 with Z51 performance package.
The CT5-V packs many of the same elements — PTM plus e-diff and magnetic shocks — but with a $30,000 less sticker price and roomy rear seats.
“Boy, this thing is good!” exclaimed Jamie as he flung the V through some Oakland County curves. I’m betting his Vette will soon have a CT5-V garage-mate.
V is faithful to the standard CT5’s promise (which also comes as a Sport and Premium Luxury model) of being at least $5,000 cheaper than the German competition. My $56,875 tester was considerably less than comparable the $62,000 Audi S4 and BMW M340i I’ve tested.
The sexy V is more fun than the conservative Audi and holds its own against Bimmer’s terrific inline-6.
Like the standard CT5, the sacrifice the V-buyer will make to BMW — and Mercedes and Audi — is in the dash displays, where the Yankee lags a generation behind. Visit a BMW’s interior and you’ll walk away drooling over its graphics displays, remote-controller wizardry and intuitive voice control.
“Go to Uncle Joe’s Chicken in Southfield, Michigan” I commanded the Bimmer, and it obeyed beautifully. The Caddy? Not so much. The CT5-V’s door handles tantalize with their soft-squeeze entry, but old-school analog gauges and an antiquated rotary screen controller lag the German’s state of the art.
Still, even the Germans feel a step behind Tesla in the electronics game. The electric Model 3 remains a unique experience and its comparable Performance version is priced at $57,000 with the CT5-V while offering head-exploding 2.9-second zero-60 acceleration, standard all-wheel drive (a $2,600 option on the Caddy), and an optional, class-best, $7,000 Autopilot.
That uniqueness won’t last long.
Later this year, Cadillac will introduce its own Super Cruise autonomous system to the 2021 CT5 which is Tesla’s match (assuming Cadillac is serious about maintaining over-the-air updates). No one can match this pair in the self-driving field.
Super Cruise offers Cadillac another value-play if it can compete with Tesla’s $7,000 Autopilot price.
Cadillac has followed GM’s brand-wide policy of nickel-and-diming customers for safety features like adaptive cruise-control and blind-spot detection at a time when even compact cars like the Nissan Sentra make such systems standard for $25,000. Cadillac could go bigger by making those features standard on the V, too — a no-brainer for a badge that is doing so much right in this segment.
With its sexiest, fastest, techiest compact car player ever, Caddy’s gotta continue to go big.
2020 Cadillac CT5-V
Vehicle type: Front-engine, rear- or all-wheel drive, 5-passenger performance sedan
Price: $48,690, including $995 destination charge ($56,875 RWD model as tested)
Powerplant: 3.0-liter twin-turbo V-6
Power: 360 horsepower, 405 pound-feet of torque
Transmission: 10-speed automatic
Performance: 0-60 mph, 4.8 seconds (Car and Driver); top speed: 168 mph
Weight: 3,975 lbs. as tested
Fuel economy: EPA 21 city/26 highway/21 combined
Report card
Highs: Roomy interior; brilliant drivetrain tech
Lows: Dated rotary controller; standard safety features, please
Overall: 4 stars
Auto sales plunge as COVID-19 infects first-quarter reports
Posted by Talbot Payne on April 1, 2020
Automakers are releasing sales results from January through March, and they already show steep declines. Dealerships around much of the country have been shut down by the COVID-19 pandemic. (Photo: Paul Sancya, AP)
With March auto sales infected by the coronavirus, Fiat Chrysler Automobiles reported sales declines of 10% for the first quarter of the year, while General Motors Co. was off 7%, brought low by a dismal last few weeks after a healthy January and February.
Wednesday’s quarterly sales reports from automakers are the first since the U.S. was hit by the coronavirus crisis which has closed auto plants and many showrooms. Ford Motor Co. won’t release its January-March sales numbers until Thursday.
The pain spread across all sectors of the automotive market. Hyundai and Porsche saw sales decelerate, with the Korean manufacturer’s sales down 43% in March alone. Including its abysmal March results, Hyundai reported an 11% drop in the first quarter. Porsche first-quarter sales were off by 20.2% from a year ago after a record 2019.
The industry is bracing for difficult months ahead. After a record five years of annual sales over 17 million units in the U.S., sales were expected to slow in 2020, according to J.D. Power forecasts, to a still healthy 16.8 million units. Sales at the start of the year were promising even as automakers put more money on the hood to keep customers coming.
But with automakers poised for the spring selling season beginning in March, COVID-19 has changed the landscape.
Some 70% of the country’s population is operating under state shelter-at-home orders including major markets like California and New York. According to a University of Michigan survey, consumer sentiment tumbled last month to its lowest level since the 2008 Great Recession and is projected to hits its largest two-month decline ever.
As of Monday, at least 35 states had issued executive orders limiting non-essential business activity affecting dealerships.
Dealers across the country are offering no-interest loans and 84-month lease terms to entice buyers. GM and its dealers are offering concierge service, courtesy transportation, and home delivery where permissible. But permissible varies by state.
In Michigan, even online sales have been suspended until April 14.
The Michigan Automobile Dealers Association has advised its members that automotive sales remain closed under Gov. Gretchen Whitmer’s business guidelines. Only service, parts and body-shop operations are allowed to stay open.
“We are still actively talking with customers, answering questions and booking appointments for when the governor’s executive order lifts on April 14,” said a spokesperson for Lafontaine Automotive Group.
New York Gov. Andrew Cuomo lifted that state’s ban on online sales March 27. “This is an enormous win,” said New York State Auto Dealer Association President Bob Vancavage in a statement. Dealers “have been working non-stop to craft an exemption under the essential business guidelines to allow dealers to do what they do best: sell cars.”
In California, the nation’s largest auto market, the California New Car Dealers Association has advised all 1,400 showrooms to comply with Gov. Gavin Newsom’s shutdown order.
Even home-team Tesla was forced to shut down production and showroom deliveries of its electric cars . The shutdown comes as the Silicon Valley automaker is launching its first entry-level SUV, the Model Y. Analysts expect Tesla sales to be off 30%.
The Golden State’s first-in-the-nation shelter-in-place order on March 16 showed ominous signs for the industry as sales cratered by 86% the first weekend after the order. J.D. Power expects that pattern to continue in other states that have enacted stay-at-home orders.
For Detroit automakers, core truck lines were a bright spot for the quarter, even when the disruption of March was included.
In GM’s stable, the Chevy Silverado pickup roared to 26% sales gains over a year ago with 114,313 units sold. The brand’s SUV lineup did not fare as well with sales down significantly, save the entry-level, $22,295 Trax SUV.
Indeed, outside of pickups and the low-volume Bolt electric car, only the affordable Trax and entry-level Spark sedan saw sales gains. That trend will be watched closely as small vehicles also saw a big gain during the last, 2008 downturn.
Overall, Chevy saw the least degradation among GM brands with sales off 3.8%. GMC dropped 5.5 percent (the Silverado’s Sierra cousin the exception at plus31%), Cadillac 15.8% and Buick 34.7%.
For Fiat Chrysler, the popular Ram pickup lifted sales 7% to 128,805 vehicles while sales of the family-friendly Chrysler Pacifica minivan climbed 5%. Jeep’s all-new Gladiator pickup continued to impress with its third consecutive quarter of 15,000-plus sales.
Despite the sales gloom, TrueCar projected the average transaction price of vehicles to be up 3.2% in March 2020. Transaction prices have been key to industry profit margins, but TrueCar analyst Eric Lyman sounded a cautionary note as COVID-19’s effect on sales did not set in until mid-month.
“Historically, there’s been a strong correlation between consumer confidence and average transaction price,” he said. “We’re now seeing one of the largest one-month declines in consumer confidence in nearly 50 years. April will provide a much clearer picture of the full impact caused from the coronavirus.”
As U.S. auto plants remain idle, China’s are open again for business
Posted by Talbot Payne on April 1, 2020
While COVID-19 has stopped auto assembly lines across North America, Chinese plants are revving up again after closing there in late January.
Major automakers from General Motors to BMW to Toyota say their factories in China have reopened, including the virus epicenter in the Wuhan province.
The openings include key product startups from Volvo and Tesla. The Chinese-owned Swedish automaker flipped the switch this week on its all-new Polestar 2, a key car in its global electrification strategy. Tesla has reportedly returned to full production at its all-new Shanghai factory producing the Model 3 sedan.
“We start production now under these challenging circumstances with a strong focus on the health and safety of our people,” said Polestar CEO Thomas Ingenlath. “This is a great achievement and the result of huge efforts from the staff in the factory and the team securing the supply chain.”
As coronavirus cases ballooned in the U.S. over the last two weeks, all 46 assembly plants in the U.S., foreign and domestic, were shut down.
China’s bounceback comes as COVID-19 cases have declined from their peak in late January. Daily life there has returned to normal with restaurants and auto dealerships re-opened. Two of the world’s largest automakers, GM and Toyota, report that production is now back to full tilt.
“Our plants in China have resumed production on a staggered basis, including the two plants in Wuhan,” said a GM representative. “Only three out of 13 plants in China haven’t started production yet.”
Plants like Jinqiao North Assembly outside Shangahia are applying strict cleansing guidelines and workers are required to wear face masks.
Employees in China went on break Jan. 25 for the Chinese New Year, two weeks after China recorded its first coronavirus-related death. They were then told not to return to work as the disease spread. GM began preparing for plants to reopen the week of Feb. 10.
Toyota, the world’s second-biggest automaker behind Volkswagen, has resumed normal operations in China with all regular shifts and production lines up to speed.
Other automakers including VW, Nissan, Hyundai and Honda reopened plants in mid-February.
Volvo’s Polestar startup — a separate electric brand — is crucial to the company as it seeks to meet European and Chinese emissions demands while also appealing to an anticipated new generation of luxury-EV customers inspired by Tesla.
The fastback EV is scheduled to arrive in Europe this summer, and then in the U.S. with a starting price of about $65,000.
Tesla’s Shanghai factory, its first outside the U.S., has been a showcase of government-business cooperation. Determined that China lead the world’s EV revolution, the government exempted the company from the national 10% sales tax. China provided extensive assistance to Tesla — including 10,000 face masks — to help it reopen the first day after the new year shutdown.
The government “will make all efforts to help key companies including Tesla return to normal production,” Xu Wei, a representative the Shanghai municipal government, said at a briefing in February. Tesla began delivering Model 3s to customers in China just one year after it broke ground.
It is unclear when U.S. plants might start rolling again. GM said Thursday its plants are shut indefinitely. Ford and Fiat Chrysler said they could reopen their U.S. facilities as early as April 14.
Detroit auto show canceled as TCF Center selected for hospital overflow
Posted by Talbot Payne on April 1, 2020
Detroit — The Detroit auto show scheduled for June has been canceled after show organizers were told the TCF Center will be used by the Federal Emergency Management Agency to house overflow patients from hospitals that are becoming overwhelmed because of the coronavirus crisis.
“Our understanding is that TCF Center will become a ‘temporary field hospital,” North American International Auto Show chairman Doug North told The Detroit News.
“We were certainly aware that FEMA has been talking with a whole host of other sites around the country — primarily convention-type centers — so we knew this was a possibility,” North said. “It didn’t become a complete reality until Saturday. It’s not a shock FEMA would want to get in here. We need to get this thing stopped as quickly as we can.”
This year’s event was scheduled for June 7-20 at the former Cobo Center and at nearby outside venues such as Hart Plaza. The show had traditionally been held in January but was moved to the summer to be more consumer-focused.
The announcement is another blow to Detroit’s restaurant and hotel industries that already were reeling from the effects of the COVID-19 shutdown. The Detroit auto show draws thousands of visitors from around the globe to the downtown, infusing the regional economy with hundreds of millions of dollars. The next show will not be held until June 11, 2021; that’s 866 days after the last show in January 2019.
“We’re hoping that this pandemic will be gone, and we can have a great show,” North said. “All our partners and stakeholders were really excited. Up until the last few days, we were getting calls from companies and individuals that wanted to get involved.”
The U.S. Army Corps of Engineers has been assessing at least 15 sites for patient overflow as coronavirus cases have spiked around Detroit. The Detroit District is working under FEMA at the direction of the state to assess a list of potential alternate care facilities that Michigan Gov. Gretchen Whitmer’s office has prepared. The Army Corps was also assessing the Henry Ford Detroit Pistons Performance Center and two Wayne State University dormitories in Detroit.
The auto show’s move from from January to June this year had been an effort by organizers to reinvent the show and inject more excitement. There had been a decline in the number of global automakers participating in recent years, and public attendance had been down.
With the move to summer, there were to be outdoor debuts, test rides, demonstrations of robotic cars and off-road events at the TCF Center and Hart Plaza. Rally cars were to “drift” on the rooftop of the convention center. A new event, the Motor Bella festival of Italian and British cars was to have been held outdoors on Broadway next to the Detroit Opera House.
The Charity Preview ball was to have added a more casual and less expensive “summer chic” outdoor option in addition to the event with formal dress inside the convention center.
All tickets purchased for the 2020 show, including for the public show, industry preview and Charity Preview will be fully refunded, officials said. The ticket office will be in contact with ticket holders. Those with tickets to the charity event will have the opportunity to donate the proceeds of their refund to one of the nine beneficiaries had the event been held. NAIAS officials are discussing plans for a fundraising activity later this year to benefit those charities.
“It’s already been 18 months as of this June since our last show, so I’m hopeful we can develop something that will allow us to really try and support those charities between now and next year,” North said.
The 2021 event will begin June 11-14 with the Motor Bella festival. Press days will be June 15 and 16, with the Charity Preview event June 18. The public show will run June 19-26.
“We fully support NAIAS organizers in their postponement,” Mark Truby, Ford Motor Co.’s chief communications officer, said in a statement. “The health and safety of our community and those working throughout the industry is our top priority. We look forward to seeing the show’s return in 2021.”
General Motors Co. had been planning to “go big” for Detroit’s first summer show, said Terry Rhadigan, GM’s executive director of communications and corporate giving. GM was planning to use its Renaissance Center headquarters on the riverfront for the event put on by the Detroit Auto Dealers Association.
“We had big plans, but it all seems rather insignificant now based on everything else that’s going on,” Rhadigan said. “[NAIAS Executive Director] Rod Alberts and the DADA have been great partners for us for decades. We are thinking about them at this difficult time and support the decision that was made.”
Fiat Chrysler Automobiles added: “We understand and support the decision, at this difficult time.”
While the cancellation is unfortunate, Michelle Krebs, executive analyst for Autotrader, said it could conserve automakers’ money, “which they are desperately trying to save right now.”
The companies have shut down manufacturing plants in North America and elsewhere because of the outbreak, causing them to take out loans, put projects on hold and take other actions to conserve cash. GM even is deferring 20% of salaried workers’ pay for up to six months with the intention of repaying them with interest later this year or early next.
“The impact of canceling the auto show is nothing compared to the impact of the coronavirus and the economic fallout,” Krebs said.
Detroit is not the only city to have lost an auto show because of the coronavirus outbreak. Three days prior to the Geneva Motor Show scheduled early this month, Switzerland banned events of 1,000 people or more, forcing its cancellation. The Beijing Auto Show in April has been postponed indefinitely, and the New York International Auto Show was moved to August from April.
In 2019, the last year the Detroit show was held in January, European automakers — with the exception of Volkswagen AG — passed on the event. A used-car display from a dealer in sports cars and exotic vehicles helped fill vacant floor space.
The event drew 774,179 ticketed visitors, which was about 35,000 fewer guests than in 2018; attendance was down in part because of a major snowstorm. Despite the downturn, the show brought a $430 million boost to the regional economy — the equivalent of hosting two Super Bowls.
“There is an opportunity,” North said, “to do this again next June and make it safe for everyone — and one that lets us leverage the great excitement we had for what we’re planning in June.”
Payne: Trusty Toyota 4Runner is 4Ever
Posted by Talbot Payne on March 30, 2020
2020 Toyota 4Runner (Photo: Toyota)
Ford is about to enter the truck-based SUV market with the Ford Bronco and I get it. People are passionate about these things.
Yet, there are only two truck-based SUVs in the mid-size market — the Jeep Wrangler and the Toyota 4Runner. The Toyota what?
You can be forgiven for forgetting the Tacoma pickup-based ute doesn’t exist because Toyota hasn’t remade it since the Mesozoic Era (actually, 2009). It hasn’t had a wall-to-wall marketing campaign for some time, unlike the Jeep. You’d have to have been living on Mars not to have seen one of the Jeep ads (and I’m told there’s a Mars trim coming.). But 4Runner fans know the Toyota is there.
“What do you drive?” I recently asked a male acquaintance in Los Angeles.
“A 4Runner. Best car I’ve ever owned.”
“What do you have in the garage?” I asked a female shuttle driver in Texas.
“4Runner, I love it.”
We automotive journalists are guilty of pooh-poohing anything that hasn’t been remade in the last five years. We’re like children attracted to the latest shiny thing. But evidence is that you don’t have to be shiny to be relevant these days.
Take the Dodge Challenger and Charger muscle cars, two of the most-recognized nameplates in America thanks to savvy marketing, state-of-the-art infotainment and big horsepower. Make that ginormous horsepower.
Customers shrug at the fact that the Dodge brothers are based on an ancient 2006 chassis.
Ditto the 4Runner.
I climbed into my 4Runner tester with Mrs. Payne on a cold winter night at Detroit Metro airport after a long week away. The snow was blowing and the roads were covered with it. Detroit potholes were lurking. Boy, was I glad to see the 4Runner’s big bones and knobby, high-profile tires.
We threw our luggage in the cavernous boot, then cranked up the interior temps — heated seats, front rear-defroster, climate temps — with big, knobby dials to match the tires. After clearing the Toyota of crusted ice and snow, I tossed the snow brush into the back seat — rugged, mid-size trucks mean never having to worry about mussing the interior.
After a long day, we were in no mood to spend the next 45 minutes crawling along Detroit’s pocked cart paths worrying about a blowout in subfreezing temps. The opposite was true of 4Runner. The beast positively loved the conditions.
Like a salty sailor on rough seas, the 4Runner relies on old technology to chart its course. I eased the shifter into neutral, then yanked the truck’s second transfer-case shifter (familiar to Wrangler fans, too) back into four-wheel drive. With all four wheels churning, we set off into the gloom.
The 4Runner sits a ridiculous 10 inches off the ground with a Jeep-like 33-degree front approach angle for off-roading. Heck, we probably could have just cut through the woods to go home. The ute even includes a crawl mode for nature’s worst. This fearlessness has made Toyota’s ute a favorite of folks in rural communities where snowplows often take days to catch up to rutted roads. But this night, we decided to stick to paved roads.
The SUV bombed happily along, the 4.0-liter 270-horse V-6 mill roaring its approval. V-6s, of course, are frowned upon in this woke green age of turbocharged fuel-sipping 4-bangers. But with its guttural growl and instant torque, the six-holer matches 4Runner’s can-do character. Like the V-6s and V-8s under the hoods of Chargers and Challengers, if it ain’t broke, don’t fix it.
Customers sure don’t think the 4Runner is old-fashioned. Sales numbers in the last five years have seen a steady climb from 76,906 in 2014 to 131,888 last year. That’s a 70% jump, mirroring the 60% rise in Toyota Tacoma pickup sales to nearly 250,000 units over the same period.
As the U.S. has moved to SUVs, the idea of a Tacoma SUV with a hatch instead of a pickup bed has real appeal. Ford no doubt hopes for the same gains from a Ranger pickup-based Bronco.
Like Dodge, 4Runner mixes its old-fashioned with a taste of modern tech.
Once on M-39 headed north, I set adaptive cruise-control to 60 mph to avoid Melvindale and Dearborn speed traps. The localities are famous for using the 55-mph speed-limited Southfield Freeway to raise revenue, catching travelers who’ve been traveling the 70 mph common to the rest of the freeway.
Asian automakers have been aggressive about outfitting all their vehicles — right down to $20,000-something compacts — with safety systems like adaptive cruise and automatic emergency-braking. The 4Runner is no exception. In addition to saving my bacon from police radar, automatic cruise-control is a welcome trip companion.
Adaptive cruise is enabled by the big radar brick in the 4Runner’s gaping fish-mouth grille. After a while on M-59, ice and snow began to coat the brick like gnats in a Florida summer. Soon, the 4Runner’s brick was coated and the car’s brain told me adaptive cruise-control was no longer available. No problem, but a reminder of the many challenges self-driving systems have to overcome.
The 4Runner encountered no navigation challenges on the route thanks to another piece of updated software, Apple CarPlay. My wife simply plugged in her phone, and Google Maps routed us around stormy obstacles — traffic backups, road closures, accidents — for the quickest way home.
Speaking of plugs, 4Runner also has a three-prong outlet in the boot — perfect for charging laptop or other devices, because who carries those round cigarette lighter chargers with them anymore?
In a week of frosty, snowy weather, the Toyota was a welcome addition to the driveway. The big lug’s not much to look at, but my $48,000 Venture Edition tester served its purpose as a proper utility vehicle with heated front thrones, fold-flat second-row seats for extended cargo room, slide-out rear floor and updated 8-inch screen that keeps pace with the Wrangler’s modern U-Connect system.
Toyota prices comparably favorably to the Wrangler, too, while offering more cargo space and better interior quiet — if less overall character than the Jeep.
Both the Wrangler and the 4Runner are ol’ St. Bernards that will run the extra mile to save you from the elements. That’s how owners like them and sales numbers prove the point. Which sets up an interesting opportunity for the coming Bronco, which will surely bring lots of cutting-edge Ford tech to the ladder-frame segment.
The 4Runner is a loyal old friend. And customers are loyal back.
2020 Toyota 4Runner
Vehicle type: Front-engine, rear- and all-wheel drive, 5-passenger SUV
Price: $37,240, including $1,120 destination charge ($48,877 AWD Venture Special Edition as tested)
Powerplant: 4.0-liter 6-cylinder
Power: 270 horsepower, 278 pound-feet torque
Transmission: 5-speed automatic with second transfer-case shifter for AWD
Performance: 0-60 mph, 7.7 seconds (Car and Driver); towing, 5,000 pounds
Weight: 4,750 pounds
Fuel economy: EPA 17 city/20 highway/18 combined
Report card
Highs: Rugged beast; nice modern touches like Apple CarPlay and 3-prong electric plug
Lows: Dated interior; gotta muscle that transfer-case shifter
Overall: 3 stars
Payne: Honda CR-V Hybrid makes geek great
Posted by Talbot Payne on March 26, 2020
New for 2020, the Honda CR-V Hybrid is the best performing CR-V with 212 horsepower and excellent torque. (Photo: Henry Payne, The Detroit News)
Honda hybrids used to be soooo nerdy.
The Japanese automaker’s first hybrid debuted 20 years ago. Costing $28,932 in today’s dollars ($18,800 in 2000), the wee front-wheel drive, three-door hatchback looked like a college science project.
Shaped like a doorstop, it was optimized for 647-mile range — assuming a semi-truck didn’t run over it first as its 72 horses struggled to get up to interstate speeds. It came standard with a manual transmission. Its bicycle-thin rear tires were covered by fender slats to increase aerodynamics. It sold like granola in a candy shop. Not well.
How far hybrids have come.
For the same price, Honda’s all-new $28,870 CR-V SUV comes standard with all-wheel drive, adaptive cruise control, automatic high beams, Apple CarPlay, Android Auto and 212 horsepower. That’s 12 more ponies than the standard 1.5-liter turbo CR-V.
Heck, it’s more horsepower than the Honda Civic Si pocket rocket. The five-door hatchback merges up the interstate on-ramp like a tiger while maintaining maximum 560-mile range and best-in-class interior space.
Unlike the Insight, Honda may have a winner on its hands.
Customers had been more than happy with the CR-V’s two gas-powered options, gobbling up over 384,000 CR-Vs last year. But, this being the Age of the Nanny State, there is a regulatory advantage to Honda offering a hybrid option for its best-selling vehicle. So Honda ditched the second, 2.4-liter gas engine for the hybrid.
It helps make government electrification goals, not to mention Honda’s own internal goals. The idea of the Japanese automaker electrifying two-thirds of its product by 2030 seems absurd, until you realize its best-selling model will have batteries under the rear seat.
Unlike hybrids of the past, this greenie isn’t just for the faithful. Like similar offerings from Ford (Escape) and Toyota (RAV4), this nerd is superior to its gas-powered peer in almost every way.
As regular readers of this space know, I am a particular fan of the 2020 Escape ute, which Ford introduces in Sport trim at just $28,000. The Ford’s battery-assisted geekiness is buried under layers of hot black mascara makeup and cool tech displays. High mpgs never looked so good.
So, too, the CR-V Hybrid. The homely Honda can’t match class sexpots like the Escape and Mazda CX-5, but a remade lower facia and snazzy wheels are welcome upgrades. And the 2020 model gets attractive wardrobe colors like Radiant Red Metallic and a battleship gray called Sonic Gray Metallic.
The CR-V Hybrid’s real beauty is in the price.
Escape and RAV4 sticker prices balloon to over $30,000 with all-wheel drive, but that must-have feature for Michigan winters comes standard — along with everything else — on the Honda for under $29,000. That’s about $1,500 below its class competitors, and just $1,200 more than a comparable gas-fired CR-V.
Standard also is the CR-V hybrid’s 38 mpg fuel economy, 30% better than the 1.5-liter turbo-4 model. That means fewer stops at the gas pump — but it also means you’ll pay for that $1,200 premium in under five years.
Given the hybrid’s 50% better fuel economy in urban areas — I averaged 40 mpg carving Tucson, Arizona’s urban roads — you might make it up quicker than that.
This is one cocky nerd.
Not only does it go farther on a gallon of gas than its gas-only brother, but it has more fun getting there. Honda had the audacity to set up a sand course for the hybrid that showed off its low-end torque.
With its direct-drive to the wheels (no transmission), the Honda provides instant torque without the groan of a continuously variable transmission that accompanies its Ford and RAV4 competitors. The Honda boasts 212 horsepower at the top end, though it’s shoutier getting there thanks to its 2.0-liter engine versus Ford’s bigger 2.5.
Honda has deep racing roots, and that DNA is felt even in the CR-V.
As I’ve noted, Ford has sewn a Sport badge on the Escape to suggest its lively personality. Don’t expect a Civic-like Type R model for the CR-V anytime soon (man, would that be a hoot) but I still enjoyed pushing the compact ute around town. Honda obsesses over the details and the hybrid’s bod is taut with a suspension to match.
Like a nerd with thick glasses and thicker teeth braces, hybrids used to mean geeky outside and inside. But the CR-V Hybrid is thoroughly mainstream.
Open the door and you get Honda’s typical interior wonderfulness. In fact, pause and admire the CR-V’s rear doors: They are thoughtfully hinged to open almost 90 degrees to the B-pillar for easier ingress and egress.
The SUV’s console is nearly as clever with a roomy center console, thanks in part to its raised shifter island. There’s storage for cups and phone, and USB ports are forward-located so you can easily plug in your phone for turn-by-turn screen navigation. Exclusive to the hybrid is Acura’s nifty “trigger ignition” located high within easy reach.
That raised console was my only interior regret, as it sometimes bounced my knee. You’ll forgive them because Honda fussiness over passenger comfort is especially notable inside the console.
CR-V’s three-row Pilot cousin has the best-in-class console with a pullback shade that allows purses to be stowed on top of the console spine — or entirely inside it. The CR-V, too, allows multiple configurations depending on what you’re hauling.
Speaking of best-in-class, the hybrid obsesses over grades like a good nerd should. Best-in-class torque, best-in-class passenger space, best rear-seat legroom, lowest cargo floor for loading.
Poke around under the cargo floor and you’ll see the only sign of hybrid sacrifice. To accommodate its lithium-ion battery, the CR-V’s standard spare tire has been replaced by a tire repair kit. Got a flat? The kit will fill the tire with air while also coating the interior with a puncture sealer. Hopefully, ahem, that sealer will last as far as the nearest service station.
Other oddities include steering-wheel paddles so that you can play with regenerative braking. And at low speeds the hybrid will emit an eerie, alien spacecraft sound to alert other earthlings that a quiet electric car is headed their way — as required by federal law.
It’s weird. But, hey, sometimes hybrids have to let out their inner nerd.
2020 Honda CR-V Hybrid
Vehicle type: Front-engine, hybrid all-wheel drive, 5-passenger SUV
Price: $28,870, including $1,120 destination charge ($37,070 Touring as tested)
Powerplant: 2.0-liter 4-cylinder mated to AC motor with 1.4-kWh lithium-ion battery
Power: 212 total system horsepower, 232 pound-feet of torque
Transmission: Single-speed direct drive
Performance: 0-60 mph, 7.6 seconds (Car and Driver); towing: NA
Weight: 3,763 lbs. as tested
Fuel economy: EPA 40 city/35 highway/38 combined
Report card
Highs: 38 mpg for a family SUV; standard features galore
Lows: Homely face; no spare tire
Overall: 4 stars
Is virus-inspired eNASCAR a glimpse at the autonomous racing future?
Posted by Talbot Payne on March 25, 2020
Former General Motors vice chairman and car guru Bob Lutz created a buzz in the auto world three years ago when he described a dystopian future in which professional drivers would safely pilot their race cars remotely while fans watched online.
America got a taste of such a future last weekend.
With the U.S. auto industry in lockdown and professional racing canceled due to the COVID-19 crisis, major race series televised virtual races featuring top-name drivers remotely driving their cars. For sure, the cars weren’t autonomous, but the experience was similar: fans got to witness a thrilling race free of the threat of injury.
The eNASCAR iRacing Pro Invitational race at the virtual Homestead-Miami Speedway, for example, was put on via iRacing’s popular online game platform and broadcast via Fox Sports 1. Viewers saw a thrilling, crash-filled race with NASCAR legend Dale Earnhardt Jr. and Daytona 500-winner Denny Hamlin dueling to the stripe. But Hamlin’s victory came without the carnage that accompanied his real-life Daytona win this January that sent competitor Ryan Newman to the emergency ward after a harrowing last-lap pileup.
“I insist that autonomous racing would be fantastic to watch,” Lutz told The News in 2017. “A battle of the sensors and adaptive software. There would be huge progress, and on the way to human-level perfection, spectacular crashes — but with nobody hurt! What’s not to like?”
The NASCAR race — and the IMSA Sebring sports car event and Formula One Bahrain Grand Prix that were also virtually run this weekend — are experiments meant to entertain fans in a desperate time. But they also dovetail with a zero-risk era where public venues have shut down for fear of transmitting the virus, and auto companies promise a future of zero fatalities.
“Zero, zero, zero,” is the new mantra of GM, for example.
“General Motors has committed itself to leading the way toward this future, guided by our vision of zero crashes, zero emissions and zero congestion,” wrote Mary Barra in 2017 describing an autonomous, battery-powered transportation revolution that she said would eliminate 1.25 million global auto fatalities, global warming and time-killing traffic jams.
Her vision dovetailed with Lutz’s own prediction of a self-driving future at Road & Track magazine’s 70th anniversary at the 2017 New York Auto Show, and again in an Automotive News column. Lutz sees a future where autonomous, ride-hailing services like Uber, Lyft and Cruise would crowd out personal driving.
“The tipping point will come when 20-30% of vehicles are fully autonomous. Countries will look at the accident statistics and figure out that human drivers are causing 99.9% of the accidents,” wrote Lutz.
Racing would soon follow, with autonomous events promising zero-risk entertainment.
The idea horrified racing legend Mario Andretti, who appeared on a panel with Lutz at the Road & Track anniversary.
“You’re talking about autonomous cars?” Andretti recalled in an Automobile magazine interview about the evening. “I don’t know. I wish I would have had a magic wand to look into the future a little bit, but there is cause for concern. Just thinking of the young talent, the young careers, looking forward, I’m always concerned about that, because I love the sport so much.”
On the virtual, eNASCAR track Sunday, young and old talent mixed. Chase Briscoe, an up-and-coming 25-year-old with Ford in NASCAR’s Xfinity minor-league series raced fender-to-fender against NASCAR Cup stars like Hamlin and Jimmy Johnson.
Retired superstar Earnhardt, now a TV analyst, also competed to amp up the entertainment. He retired in 2017 for fear of injury after multiple concussions over his career. Racing insiders say virtual, autonomous racing would spare drivers injury.
The eNASCAR Homestead race was broadcast with NASCAR’s familiar play-by-play trio of Mike Joy, Jeff Gordon and Larry McReynolds — each socially distanced from the other.
The field of racers all participated remotely via home computer simulators ranging from Hamlin’s estimated $10,000-plus setup to Timmy Hill’s more basic, off-the-shelf Logitech hardware. The racing around the virtual, 1.5-mile oval speedway was tight and full of wrecks given the wide range of experience at computer racing. The damage inhibited cars’ performance just as in real life, but racers were given two opportunities to “reset” their cars to keep racing if the damage got too bad.
Virtual cars carried their usual corporate sponsors including automakers Chevy, Ford and Toyota.
“There’s not another sport that can simulate to this degree,” marveled Joy.
Veteran racing auto writer Steven Cole Smith, who covered the weekend’s virtual racing for Autoweek.com, was unconvinced that computer-based or autonomous racing is the future.
“I hope I don’t live long enough to see that,” he said, musing on the inherent risk in racing that inspired Ernest Hemingway to write: “Auto racing, bullfighting and mountain climbing are the only real sports. All others are games.”
For his part, Lutz says the virtual weekend racing gave a glimpse at the inevitable future. “With passing and crashing, it will soon be as much fun as watching the real thing. You could even imagine a future master-computer that randomly feeds in mechanical failures, including yellow-flag ‘debris on track.’”
The virtual racing series will continue in the weeks ahead, joined by an IndyCar e-race at Michigan International Speedway next weekend.
Report: Auto sales T-boned by COVID-19 restrictions
Posted by Talbot Payne on March 25, 2020
The COVID-19 virus could slash sales of new vehicles by more than a third this month, according to automotive forecaster J.D. Power.
With state-mandated shutdowns in major markets accelerating across the country from New York to Detroit to San Francisco, the company says sales are already off 19% from its original March forecast. If current trends hold, J.D. Power expects sales by the end of the month to be off 32-40% from pre-virus forecasts.
J.D. Power’s Tyson Jominy expects Metro Detroit sales to decline by 80% in coming weeks as its March 25 shelter-in-place order mirrors those of other metro areas. San Francisco, for example, saw sales crater by 86% over the weekend after its March 17 stay-at-home order.
“It’s pretty clear that stay-at-home orders are the determining factor,” said Jominy, vice president of data and analytics. “Even in Detroit that has an unusually high lease rate due to home-town automakers. We expect Detroit to have similar levels of decline to other areas in the near future.”
Looking ahead, the Troy-based firm expects March through July to be the most heavily impacted months with a sales losses of 1.8-2.8 million units. The company is using China’s 12-week cycle of recovery as a baseline for its forecasts on the virus’s impact. Assuming fewer government restrictions in the latter half of the year, it forecasts annual sales between 13.3 and 14.8 million units – down 12-21% from a forecast of 16.8 million sales before the virus struck. U.S. sales for 2019 were 17.1 million, a record fifth-straight year over 17 million.
The J.D. Power numbers dovetail with other forecasts. IHS Markit sees a decline to 14.4 million in sales, a 15.3% drop, while Browne Consulting predicts a decline in US sales to 14.28 million units, a 16.5% reduction. The drops are shy of the 19% reduction in the 2008-2009 Great Recession.
Globally, IHS Markit forecasts a “stalling of demand in 2020” worse than the 8% global recession with car sales dropping 12% from 2019 to 78.8 million units.
Among major markets through last week, Detroit was least impacted with sales up 2% in March. San Francisco saw sales drop 41% this month, including the 86% weekend plummet after its March 17 shelter order. Seattle, once the US epicenter of the pandemic, is now the fourth most affected market, dropping behind San Francisco, Sacramento, and San Diego.
“It is important to recognize that while month-to-date results in some markets appear relatively robust, the sales pace in all markets is falling rapidly and a majority of ‘stay-at-home’ orders had not taken effect last week,” wrote Jominy in J.D. Power’s report. “The complete impact of the new rules will become apparent this week.”
Auto sales declines have tracked the coronavirus panic as it has emptied US streets week by week. Sales on March 8 were off 1%, March 15 by 15%, and March 22 by 35%.
Those numbers are expected to accelerate into April with J.D. Power predicting sales off 79 percent nationwide to just 230,000 units as more governors follow the 25 states (60 percent of the US population) that currently have stay-at-home orders.
However, the forecast sees bright spots assuming the restrictions start to lift in the weeks ahead.
Some 31 percent of consumers lease vehicles and J.D. Power expects 50 percent of them will postpone a decision when their vehicles come off lease in the next few months.
“When the restrictions lift, that means a large numbers of people will be coming back to the market,” said Thomas King, chief product officer for J.D. Power.
Unlike past economic downturns, King does not see auto production as an issue as plants were going full tilt before they shut down for COVID-19. Inventories are at a healthy 3.7 million units on the ground meaning customers will have lots of choice to return to.
Returning to production, however, is expected to be difficult, says JD Power, due to supply chains issues after weeks of shuttering. New production is expected to decline by 50% in April, 33% in May, and 10 in June.
To motivate buyers to return, dealers are ramping up rarely-used, 84-month lease terms. “We anticipate such loans to be prevalent” says King who notes they normally account for just 7% of the market.
The longer-term loans should also help the industry maintain record-high, pre-COVID-19 transaction prices of $33,600– key to maintaining auto profitably.
Sellers in the used market, however, will see their assets depreciate as used car values are falling faster than new cars.
Why Tesla resisted COVID-19 ultimatum to shutter Model Y production
Posted by Talbot Payne on March 21, 2020
Tesla Inc. agreed to shut down production at its Fremont, California, facility by Monday after days of tension with local Alameda County authorities over whether its facility constituted an “essential business” under coronavirus shelter-in-place guidelines.
The automaker was in the middle of the launch of its Model Y electric crossover that one industry analyst deemed “mission critical.”
“We have decided to temporarily suspend production at our factory in Fremont, from end of day March 23, which will allow an orderly shutdown,” Tesla said in a statement to investors.
The shutdown came a day after the EV pioneer pushed back on the county sheriff’s ultimatum in an email to its employees — first reported by Electrek.com — that it was “decreasing onsite personnel … while honoring our government commitment to keep our national critical infrastructure running.”
Tesla had defined “national critical infrastructure” as “business sectors crucial to the economic prosperity and continuity of the United States and includes auto manufacturing and energy infrastructure as defined by the Department of Homeland Security.”
Tesla’s reticence has been in contrast to Detroit-based automakers that have shut down their operations after concerns from United Auto Workers members and their leadership, including President Rory Gamble.
J.D. Power Vice President for Data and Analytics Tyson Jominy says that non-union start-up Tesla is under more pressure to produce because it has a thinner portfolio than traditional luxury automakers and because it usually makes its U.S. shipments at the end of each quarter.
“Model Y production is mission-critical to Tesla,” Jominy said. “They’re missing the bulk of the SUV market and the Model Y will greatly increase their market share. They are being watched more than anyone else by investors.”
He said Tesla’s revenue structure is also different than other carmakers since it sells directly to consumers. Where other companies book sales revenue to dealers as soon as cars leave the factory, Tesla operates its own dealerships and must deliver to customers to receive cash.
Tesla CEO Elon Musk has resisted the idea that the coronavirus is a crisis. Alameda County, population over 1.5 million, reported 35 cases of COVID-19 by Thursday.
In its note to investors, Tesla said basic operations at Fremont would continue after March 23 “in order to support our vehicle and energy service operations and charging infrastructure.” Its Nevada battery gigafactory production is unaffected as is its national Supercharging network.
How the coronavirus brought auto marketing blitzes to a halt
Posted by Talbot Payne on March 21, 2020
Tucson, Arizona — When the last Honda CR-V Hybrid test vehicle was loaded on a car trailer here Friday, the auto industry’s media marketing machine packed up with it.
In an unprecedented seven-day period, automakers in the U.S. market — with one significant exception — shut down their media rollouts of new models to the public to stem the spread of the coronavirus. Like Hollywood’s postponement of new film releases, the delay will stack up introduction of new models and disrupt marketing plans.
Only Tesla bucked the industry trend as CEO Elon Musk downplayed the outbreak as the company’s compact SUV, the Model Y, began delivery to customers. Unlike other carmakers, however, Tesla does not invest in big, media-focused marketing campaigns, so its contrarian view did not disrupt the company’s product plans.
“Out of an abundance of caution, we have made the decision to cancel the Trailblazer drive program for now,” read the General Motors Co. email to the automotive press just four days before the Chevy Trailblazer subcompact SUV’s March 9-14 media test program in Phoenix. GM cited concerns for safety after reviewing recommendations from the U.S. Centers for Disease Control and the World Health Organization.
Cancellation of a California media rollout for the Cadillac CT4 and CT5 luxury sedans quickly followed. Then another big blow the following Monday: the postponement of Cadillac’s first all-electric vehicle, the Lyriq SUV — a product GM hopes will redefine its luxury brand for years to come.
Media reveals and test programs are part of carefully choreographedrollouts to maximize publicity for products that can cost hundreds of millions of dollars to bring to market.
“They are an important way to get key media to understand the products in a short period of time, then write about them,” says veteran auto analyst Karl Brauer, executive publisher of Kelley Blue Book. “That helps customers learn about the car as they arrive at dealerships.”
GM’s cancellations came at the start of a busy spring of introductions, and sent ripples through the industry. An automaker of GM’s size forced other automakers to reassess their own programs.
Tesla Chief Executive Elon Musk was unconcerned, tweeting he same day: “The coronavirus panic is dumb.”
Coincidentally, GM’s action came just days after the producers of the James Bond movie “No Time to Die” delayed its release date from Easter weekend (April 10) to Nov. 25 for fear the film’s box office returns would be severely impacted by the virus.
“The James Bond movie is a metaphor for auto reveals. Movies are released at a specific time for maximum audience exposure,” said Brauer. “You don’t want them all jammed together or they will be stepping on each other.”
That reality was a key factor as Ford, Hyundai and Porsche all pushed forward with their programs the week of March 16-21. But the pressure continued to mount.
On March 10 the New York Auto Show, one of North America’s largest exhibitions with numerous product reveals and over 1 million attendees, threw in the towel.
“For 120 years, ‘the show must go on’ has been heavily embedded in our DNA, and while the decision to move the show dates didn’t come easy, our top priority remains with the health and well-being of all those involved,” said show organizer Mark Schienberg in announcing the show’s first postponement since World War II.
Like “No Time to Die,” it got a new date: Aug. 28 to Sept. 6. Auto products wouldn’t be so lucky.
On Tuesday and Wednesday of last week, members of the media arrived in Tucson for Honda’s CR-V Hybrid program. Unlike other automakers, Honda had not banned executive travel in the U.S., and its program — with just 50 media over two days — would be a compact affair.
It would also be the last for a while.
Friday the 13th opened with Ford pulling the plug on its March 17-18 Bronco plans — a painful step given the importance in spearheading the Blue Oval’s shift from cars to SUVs. The move came after Washington banned European travel and COVID-19 cases continued to rise. “We concluded the issue has taken on a different dimension,” said a Ford representative.
With its German-based executives banned from travel to the States, Porsche followed suit — canceling its March 22 California media test program for its new 911 Turbo S.
Only Tesla remained defiant as Musk reportedly expanded on his March 6 coronavirus tweet with a March 13 email to employees. According to a copy of the email leaked to Buzzfeed, Musk told employees the evidence “suggests that (COVID-19) is not within the top 100 health risks in the United States.”
Tesla’s chief followed up with another email, reported by the LA Times, on March 16 saying that: “My frank opinion is that the harm from the coronavirus panic far exceeds that of the virus itself,” adding that COVID-19 cases “will not exceed 0.1% of the population.”
Model Y deliveries began over the weekend — ahead of schedule.
By week’s end, it was clear Honda would be the last media event until May. In a Super Bowl ad back on Feb. 2, GM announced its electric Hummer SUV would debut May 20.
In perhaps a light at the end of the coronavirus tunnel, the event is still on.
Payne: Ute smackdown! VW Atlas Cross Sport vs. Chevy Blazer
Posted by Talbot Payne on March 19, 2020
In the movie “Freaky Friday,” Lindsay Lohan and Jamie Lee Curtis played a mother and daughter who — via a magical fortune cookie — switched bodies. Confusion ensued.
Kind of like the shapely, athletic Chevrolet Blazer and bold, hulking Volkswagen Atlas Cross Sport.
These mid-size SUVs play against national stereotype. It’s as if Chevy and VW switched bodies (no fortune cookie involved). I recently tested the all-wheel drive equipped pair in the northern latitudes of Michigan (Blazer) and the Pacific Northwest (Atlas Cross Sport).
With its toned, tightly engineered bod, the Blazer felt like a German sprinter begging me to exit the city and find some country curves. On the other hand, I might have mistaken the big, square Atlas as a GMC product were it not for the oval VW logo planted on its kisser. This American-built German is less interested in carving apexes than packing all your belongings in back for a weekend Up North.
Middie SUVs were once a boutique segment. Long dominated by the Jeep Grand Cherokee, it offered a stylish refuge for empty-nesters who still coveted the size of a three-row family ute but with more design appeal. Want something else? The high-tech Ford Edge, Subaru Outback and funky Nissan Murano were also available.
Other SUV segments grew like wildfire — three-rows, compacts, subcompacts, even a subcompact tweener segment squeezed between subcompacts and compacts. So it seemed inevitable the midsize ute segment would grow. In the last couple years we’ve gotten the Honda Passport, Chevy Trailblazer, remade Hyundai Santa Fe and now the VW Atlas Cross Sport.
As our Chevy and VW testers suggest, the entries are surprisingly diverse in their approach.
Cross Sport gambles that shoppers want more room than zoom. And so, like the Pilot-derived Honda Passport, it has taken its gigantic three-row architecture and simply lopped off the third row. The Blazer, meanwhile, has no three-row variant and aims for style like the Edge and Murano. The Santa Fe/Outback are comparative wallflowers but do their thing with the best value-plays in class.
If the Outback shops at Dunham’s Sports, then the Blazer dresses at Lululemon.
You know Blazer’s intentions from its ubiquitous TV ad in which a hip mom takes one look at the RS model and exclaims: “This is my sexy-mom car.”
Blazer looks the part. It’s fashionably dressed in swoopy lines, floating roof and intimidating grille. European it may appear, but in truth it’s homegrown — an attempt to bring Camaro style to SUV. I like the effort — though it can all be a little too much (an issue with Camaro as well).
The ginormous Cross Sport, meanwhile, is quite conservative — though its fastback allows a sleeker look than its three-row Atlas sibling.
The real contrast is inside.
Blazer imports Camaro cues to make the best-looking interior in class: aviator climate controls (ooooh, turn their rims to adjust the temp), tablet-like infotainment screen, sporty gauges. All this, and console cubby space, too.
The Cross Sport looks like a Chevy Silverado with acres of blocky, black space. I pined for the two-tone brown-and-black interior just to break up the yards of black plastic. There’s little imagination here, but loads of truck-like storage space — top of dash, behind the shifter, in the deep console box.
Both Blazer and Cross Sport offer backseat living rooms. Your 6-foot-5 reviewer was comfortable fore and aft. Need more cargo room? Flatten the second rows. It’s the cargo hold where you really feel the VW’s 4.5-inch wheelbase advantage — translating into near-class-best 40 cubic feet of storage space vs. the Blazer’s 30.
The Tennessee-born VW speaks with more of an American accent these days, and it understands our craving for standard features. Blindspot-assist and remote app come standard, and my $42,000 tester was loaded with adaptive cruise-control, heated steering wheel and panoramic roof.
In another “Freaky Friday” moment, the Blazer feels Old Europe by skimping on standard features — most notably adaptive cruise-control (which comes standard on a $28,000 Outback). My $41,000 Blazer went begging, however — and you’d have to buy premium trims starting at $48,000 to get it standard.
The Blazer’s sex appeal doesn’t stop at the drafting board. This is one gym-toned ute.
Chevy has made handling a priority in its lineup from the hot-rod Silverado pickup to the Equinox SUV. The Blazer is no different. Like its siblings, Blazer boasts a nimble chassis that’s genuinely fun to drive.
The only thing sporty about the Cross Sport is its name. VW fans hoping the hot-hatch Golf R’s handling translates to brother ute will be disappointed. If you want a fun, all-wheel-drive VW for $42,000, buy the sensational Golf R — or, better yet, the stunning, hatchback Arteon sedan, which you’ve never heard of because we Yanks are so star-struck with SUVs. But I digress.
Through Oakland County’s twisties, the Blazer felt a class smaller thanks to its tuned suspension and smooth tranny. I took the Cross Sport on writhing mountain passes north of Vancouver, British Columbia, and … aw, fuhgeddaboudit.
Just lock in cruise-control and admire the scenery. Which brings me to the question of which to buy.
Both the Cross Sport and Blazer are optioned with V-6s, but the added oomph is lost on the porky Atlas. Stick with the peppy 235-horse turbo-4 (shared with the Golf GTI). Despite similar specs as Chevy’s four-cylinder, the VW’s four is better with a tidy eight-speed transmission (now, that’s European!), which smoothly propelled the big ute through the rev range.
The Blazer’s V-6 option, meanwhile, comes with a whopping 32 more ponies than the Cross Sport, complementing its athletic intentions. Sure, the V-6 option is a big step up in price to the $45,000 RS model. But the sexy-mom RS is hot. Cross Sport’s similar R-Design trim was barely noticeable on the $52,000 SEL Premium trim I drove.
“What’s different about America is all the choices you have,” said VW North American product chief Serban Boldea as we lounged in a Cross Sport’s huge lobby — er, seats.
That choice now extends to mid-size utes. Check out your local dealer for “Freaky Friday” deals.
2020 Volkswagen Atlas Cross Sport
Vehicle type: Front-engine, front- and all-wheel drive, 5-passenger SUV
Price: $31,565, including $1,020 destination charge ($42,700 AWD SEL turbo-4 and $51,445 AWD SEL Premium R-Line V-6 as tested)
Powerplant: 2.0-liter turbo-4; 3.6-liter V-6
Power: 235 horsepower, 258 pound-feet torque (turbo-4); 276 horsepower, 266 pound-feet torque (V-6)
Transmission: 8-speed automatic
Performance: 0-60 mph, NA; 2,000-5,000 lbs.
Weight: 4,288-4,411 lbs.
Fuel economy: EPA 18 city/23 highway/20 combined (AWD turbo-4); 16 city/22 highway/19 combined (AWD V-6)
Report card
Highs: Bold looks; roomy interior/cargo
Lows: Uninspired interior; no VW hot-hatch DNA
Overall: 3 stars
2020 Chevrolet Blazer
Vehicle type: Front-engine, front- and all-wheel drive, 5-passenger SUV
Price: $29,995, including $1,195 destination charge ($41,595 AWD 3LT turbo-4 as tested)
Powerplant: 2.5-liter 4-cylinder; 2.0-liter turbo-4; 3.6-liter V-6
Power: 193 horsepower, 188 pound-feet torque (2.5L 4-cyl); 230 horsepower, 258 pound-feet torque (2.0-liter turbo-4); 308 horsepower, 270 pound-feet torque (V-6)
Transmission: 9-speed automatic
Performance: 0-60 mph, NA for turbo-4; 6.3 sec. for V-6 (Car and Driver); towing NA for turbo-4, 4,500 lbs. (V-6)
Weight: 3,810-4,246 lbs.
Fuel economy: EPA 22 city/27 highway/24 combined (2.5L 4-cyl); 21 city/28 highway/24 combined (AWD 2.0-liter turbo-4); 18 city/25 highway/21 combined (V-6)
Report card
Highs: Stylish, roomy interior; tight handling
Lows: Skimpy on some standard features; can get pricey
Overall: 3 stars
Payne: Trusty Toyota 4Runner is 4Ever
Posted by Talbot Payne on March 15, 2020
Ford is about to enter the truck-based SUV market with the Ford Bronco and I get it. People are passionate about these things.
Yet, there are only two truck-based SUVs in the mid-size market — the Jeep Wrangler and the Toyota 4Runner. The Toyota what?
You can be forgiven for forgetting the Tacoma pickup-based ute doesn’t exist because Toyota hasn’t remade it since the Mesozoic Era (actually, 2009). It hasn’t had a wall-to-wall marketing campaign for some time, unlike the Jeep. You’d have to have been living on Mars not to have seen one of the Jeep ads (and I’m told there’s a Mars trim coming.). But 4Runner fans know the Toyota is there.
“What do you drive?” I recently asked a male acquaintance in Los Angeles.
“A 4Runner. Best car I’ve ever owned.”
“What do you have in the garage?” I asked a female shuttle driver in Texas.
“4Runner, I love it.”
We automotive journalists are guilty of pooh-poohing anything that hasn’t been remade in the last five years. We’re like children attracted to the latest shiny thing. But evidence is that you don’t have to be shiny to be relevant these days.
Take the Dodge Challenger and Charger muscle cars, two of the most-recognized nameplates in America thanks to savvy marketing, state-of-the-art infotainment and big horsepower. Make that ginormous horsepower.
Ditto the 4Runner.
I climbed into my 4Runner tester with Mrs. Payne on a cold winter night at Detroit Metro airport after a long week away. The snow was blowing and the roads were covered with it. Detroit potholes were lurking. Boy, was I glad to see the 4Runner’s big bones and knobby, high-profile tires.
After a long day, we were in no mood to spend the next 45 minutes crawling along Detroit’s pocked cart paths worrying about a blowout in subfreezing temps. The opposite was true of 4Runner. The beast positively loved the conditions.
Like a salty sailor on rough seas, the 4Runner relies on old technology to chart its course. I eased the shifter into neutral, then yanked the truck’s second transfer-case shifter (familiar to Wrangler fans, too) back into four-wheel drive. With all four wheels churning, we set off into the gloom.
The 4Runner sits a ridiculous 10 inches off the ground with a Jeep-like 33-degree front departure angle for off-roading. Heck, we probably could have just cut through the woods to go home. The ute even includes a crawl mode for nature’s worst. This fearlessness has made Toyota’s ute a favorite of folks in rural communities where snowplows often take days to catch up to rutted roads. But this night, we decided to stick to paved roads.
The SUV bombed happily along, the 4.0-liter 270-horse V-6 mill roaring its approval. V-6s, of course, are frowned upon in this woke green age of turbocharged fuel-sipping 4-bangers. But with its guttural growl and instant torque, the six-holer matches 4Runner’s can-do character. Like the V-6s and V-8s under the hoods of Chargers and Challengers, if it ain’t broke, don’t fix it.
Customers sure don’t think the 4Runner is old-fashioned. Sales numbers in the last five years have seen a steady climb from 76,906 in 2014 to 131,888 last year. That’s a 70% jump, mirroring the 60% rise in Toyota Tacoma pickup sales to nearly 250,000 units over the same period.
As the U.S. has moved to SUVs, the idea of a Tacoma SUV with a hatch instead of a pickup bed has real appeal. Ford no doubt hopes for the same gains from a Ranger pickup-based Bronco.
Like Dodge, 4Runner mixes its old-fashioned with a taste of modern tech.
Once on M-39 headed north, I set adaptive cruise-control to 60 mph to avoid Melvindale and Dearborn speed traps. The localities are famous for using the 55-mph speed-limited Southfield Freeway to raise revenue, catching travelers who’ve been traveling the 70 mph common to the rest of the freeway.
Asian automakers have been aggressive about outfitting all their vehicles — right down to $20,000-something compacts — with safety systems like adaptive cruise and automatic emergency-braking. The 4Runner is no exception. In addition to saving my bacon from police radar, automatic cruise-control is a welcome trip companion.
Adaptive cruise is enabled by the big radar brick in the 4Runner’s gaping fish-mouth grille. After a while on M-59, ice and snow began to coat the brick like gnats in a Florida summer. Soon, the 4Runner’s brick was coated and the car’s brain told me adaptive cruise-control was no longer available. No problem, but a reminder of the many challenges self-driving systems have to overcome.
The 4Runner encountered no navigation challenges on the route thanks to another piece of updated software, Apple CarPlay. My wife simply plugged in her phone, and Google Maps routed us around stormy obstacles — traffic backups, road closures, accidents — for the quickest way home.
Speaking of plugs, 4Runner also has a three-prong outlet in the boot — perfect for charging laptop or other devices, because who carries those round cigarette lighter chargers with them anymore?
In a week of frosty, snowy weather, the Toyota was a welcome addition to the driveway. The big lug’s not much to look at, but my $48,000 Venture Edition tester served its purpose as a proper utility vehicle with heated front thrones, fold-flat second-row seats for extended cargo room, slide-out rear floor and updated 8-inch screen that keeps pace with the Wrangler’s modern U-Connect system.
Toyota prices comparably favorably to the Wrangler, too, while offering more cargo space and better interior quiet — if less overall character than the Jeep.
Both the Wrangler and the 4Runner are ol’ St. Bernards that will run the extra mile to save you from the elements. That’s how owners like them and sales numbers prove the point. Which sets up an interesting opportunity for the coming Bronco, which will surely bring lots of cutting-edge Ford tech to the ladder-frame segment.
The 4Runner is a loyal old friend. And customers are loyal back.
2020 Toyota 4Runner
Vehicle type: Front-engine, rear- and all-wheel drive, 5-passenger SUV
Price: $37,240, including $1,120 destination charge ($48,877 AWD Venture Special Edition as tested)
Powerplant: 4.0-liter 6-cylinder
Power: 270 horsepower, 278 pound-feet torque
Transmission: 5-speed automatic with second transfer-case shifter for AWD
Performance: 0-60 mph, 7.7 seconds (Car and Driver); towing, 5,000 pounds
Weight: 4,750 pounds
Fuel economy: EPA 17 city/20 highway/18 combined
Report card
Highs: Rugged beast; nice modern touches like Apple CarPlay and 3-prong electric plug
Lows: Dated interior; gotta muscle that transfer-case shifter
Overall: 3 stars
As GM and Ford ramp up EVs for US, Europeans retreat
Posted by Talbot Payne on March 15, 2020
As General Motors and Ford Motor Co. bet the farm on electric vehicles, European manufacturers are pulling vehicles from the U.S. market for lack of demand.
BMW confirmed this week that it will not bring its electric iX3 crossover to these shores, following a decision by Mercedes in December to delay the introduction of its EQC EV here. They will be sold in international markets like Europe and China where governments are forcing electrification with penalties and consumer incentives.
The BMW and Mercedes made their decisions despite the fact that the iX3 and EQC are aimed at the heart of the American market: the compact SUV segment. The similar-size gas-powered BMW X3 and Mercedes GLC are the German automakers’ best-selling vehicles here.
The moves follow poor sales for Jaguar’s iPace SUV, which debuted to media raves last year as a Tesla-killer but which has failed to catch fire with consumers. Tesla dominates the EV market with 80% of sales and has been the only automaker to sell in volume.
Ford is investing $11 billion to produce 20 new EVs by 2023, headlined by the Tesla Model Y-fighting Mustang MachE compact ute. GM last week said it will spend $20 billion on 22 vehicles in the same time frame. Ford predicts a third of its vehicles will be electric by 2030 while GM says 60% of its research and development is committed to EVs as it electrifies all its brands.
GM is targeting Tesla a decade after introducing the Chevy Volt plug-in hybrid in response to the Toyota Prius hybrid which industry analysts expected to lead a consumer stampede to hybrids. Volt production ended last year after disappointing sales, while Prius sales are off 60% from last decade as predictions of an oil shock never came to fruition.
This month’s drop in crude prices may create more headwinds for battery-powered vehicles.
The average price of gas nationally was $2.34 this week – down from $4-a-gallon in 2011 – with prices as low as $1.79 in Metro Detroit due to an international oil price war cause by decreased demand due to the coronavirus scare.
Despite the U.S. debut of 45 pure electric and plug-in hybrids to considerable hype last year, battery-powered sales plunged 6.8% to only 325,000 in sales according to Edmunds.
BMW and Mercedes, however, are bullish on sales of their EV SUVs overseas, especially in Europe and China where government incentives are heavily skewed toward electrics. In Europe auto fleets must meet carbon dioxide targets of 95 grams/per liter – equivalent to 57 mpg – or face massive fines.
A U.S. National Highway Transportation Safety Administration analysis of a similar U.S. target of 54.5 mpg by 2025 would have no impact on global temperatures by the year 2100.
To encourage consumers to buy EVs, countries are dangling a host of incentives – and penalties. France, for example is imposing a tax of up to $20,000 on non-electric cars. A new VW Touareg diesel SUV will see an increased tax this year of nearly $8,000. Norway and Denmark tax non-EVs by over 100% of sticker price.
“The EV market is purely a government creation,” said Seeking Alpha auto analyst and investor Anton Wahlman. “Take away government mandates, subsidies and other incentives, and EVs are a steady 0.1% of the market whether we’re talking about Laos, Louisiana or Luxembourg.”
Despite nixing the iX3 — and poor sales for its current i3 and i8 EV lineup currently — a BMW spokesperson says more EVs are in the pipeline for the US in 2021: “The iNext goes into production in the middle of 2021, followed by the BMW i4, which begins production towards the end of 2021.”
Both vehicles are based on BMW’s all-new “skateboard” architecture.
GM EVs will also be based on a new skateboard platform which the company believes is game-changing when combined with the continued drop of battery prices. GM says that, in addition to its green benefits, its BEV3 architecture is more efficient to manufacture, provides more crash protection than gas cars, and will offer a more refined driving experience.
“No one knows the (customer) adoption curve,” GM President Mark Reuss said last week. “So we have to be tooled and ready to go.”
Other automakers express similar sentiments that EV adoption is inevitable both because of government regulation and a consumer shift. At a Volkswagen test program in Vancouver this month, executives said the millennial generation covets EVs because they are environmentally aware – and because they expect the same technology in cars as in their battery-powered smartphones.
VW plans on introducing the first of its all-electric ID line – the Tesla-like ID.4 crossover – to the U.S. later this year. Product planners say, however, EV acceptance in the U.S. may come slowly.
So to meet consumer demand, VW is introducing another variant of its hot-selling gas-powered three-row Atlas SUV – the two-row Atlas Cross Sport.
IndyCar opener: In his 20th season, Dixon isn’t slowing down
Posted by Talbot Payne on March 15, 2020
Think of Scott Dixon as IndyCar’s Roger Federer.
As he enters his 20th year in American open-wheel racing this weekend in St. Petersburg, Florida, Dixon has dominated the sport like few before him. Like Federer in tennis, Dixon has been a constant at the top of the sport, winning five championships and amassing more wins (46) than any driver before him save for Mario Andretti and AJ Foyt.
He was the youngest-ever (20) winner in his first year, won his first championship in his third season, and has finished outside the Top Five in points only five times. Shortly after the Detroit Grand Prix this May, he will turn 40 while racing neck-and-neck with young guns half his age.
“It’s interesting to see how each generation shifts,” he said in an interview from his home in Indianapolis. “It’s what drives you. It’s purely competition, and with these young guys there’s been a big insurgence in recent years in IndyCar. I’m loving it.”
Dixon has tasted success on Detroit’s rugged street course — winning here three times — but not at St. Petersburg.
“I’ve never won there, which is something that bugs me,” says the veteran nicknamed the Iceman. “We had some great pre-testing, and the team has done a great job gearing up for the season.”
Though both St. Pete and Detroit are street courses, Dixon emphasizes that they are dramatically different from the cockpit, primarily because of Belle Isle’s concrete surface.
“Detroit is its own bag, really. It’s a concrete circuit and it’s quite rough just with where all the seams are and how the concrete lays,” he said. “Technically, St. Pete has a little more grip and a little more high-speed. Detroit has . . . very low grip in some areas.”
Detroit commuters know what he’s talking about.
Dixon has been at the top of IndyCar for so long in part because he is a master of all surfaces. Again, the Federer analogy applies.
The 38-year old Swiss legend has won his 20 tennis titles on grass, hard courts, and clay. IndyCar is like no other racing series on the planet — requiring drivers to win on street courses, road courses, short-track ovals, and super-speedway ovals if they are to take home the crown after 17 races.
That versatility is no more in evidence than the week of May 24-31 when racers will transition from the banked Indianapolis super-speedway to two punishing races on Belle Isle’s mean streets.
“That’s the biggest extreme you can have,” said Dixon, who won the coveted Indy 500 in 2008. “One week you’re at 250 mph with almost no downforce on the car — about 1,500 pounds — and then go to a street course topping out at 170 mph but with 6,000 pounds of downforce on the car. I love that mix as a driver.”
It wasn’t always so.
Dixon came to US open-wheel racing from the epic road courses of New Zealand and Australia — “my all-time favorite’s Philip Island, which is just outside of Melbourne” — but had to quickly adapt to the banked ovals adored by American fans.
“Honestly, (my) first year in 2001, I didn’t get along well with the ovals,” said Dixon, even though he had had success in Indy racing’s junior series, Indy Lights. A move to Chip Ganassi’s racing team in 2002, however, was a turning point. He’s been with Ganassi ever since.
“Once I moved to Ganassi and had a good base of (chassis) setups, it was a good mind shift for me. We went on to win the championship,” he said, recalling an era when the open-wheel series was split between CART and the Indy Racing League. All 16 IRL races were held on ovals.
Through his two decades of success in the U.S., Dixon has had numerous rivals including champions Dario Franchitti, Sam Hornish, and most recently Josef Newgarden. But perhaps no driver has been as consistently excellent over the last decade as Will Power — an Australian who is the same age as Dixon.
Named Autoweek’s top two “Drivers of the Decade,” (Dixon is No. 1) they are the only two pilots to have finished in the Top 10 in points the last 10 years.
Yet, where Federer and Rafael Nadal will forever be compared as tennis rivals, Dixon does not view Power in the same manner.
“(There’s) not a set rivalry, it’s always the guy you’re competing with at the time. I think it’s more team based,” reflects Dixon, who will pilot a Honda-powered Dallara Sunday. “We benchmark ourselves off Penske. They are a helluva team with a fantastic driver lineup and the same goes for Andretti.”
Dixon says the new season brings a big change for drivers as they acclimate to the “aeroscreen” safety cockpit design meant to shield them from flying debris. A fierce competitor, Dixon would relish another swim in Belle Isle’s fountain if he can win again here in Detroit.
“It’s the only time I’ve ever jumped in a fountain,” he laughed. “It was a lot colder than I expected, but when you’re winning, man, who cares!”
But the race that animates him like no other — a universal feeling among his peers — is the Indianapolis 500.
“Indy is like nothing else. I’ve been lucky enough to go to Super Bowls, World Cups, all the great events around the world,” said the Kiwi. “But to get almost 400,000 people in one place — the atmosphere is crazy.”
The road racing talent who won his first racing title as a 14-year old on the other side of the world, is now the dean of IndyCar drivers.
“I never really got (oval racing) until I drove it. And then I thought, ‘Wow, this is so tough, and so technical.’ It’s crazy, man, living life on the edge at 250 mph.”
IndyCar Series highlights
Opener: Firestone Grand Prix of St. Petersburg
When: 3 p.m. Sunday
TV: NBCSN
Chevrolet Detroit Grand Prix
Race 1: 3 p.m. Saturday, May 30
Race 2: 3 p.m. Sunday, May 31
TV: Both on NBC
Automakers get ‘imaginative’ with coronavirus parts disruptions
Posted by Talbot Payne on March 15, 2020
The real impact of the coronavirus outbreak in China on the North American auto industry soon could be felt as delays from the shipment of parts catch up to automakers — a disruption that could lead suppliers to reverse a trend of consolidating production in China.
As automakers cancel vehicle showings and implement employee travel restrictions, the magnitude of the outbreak’s impact on U.S. manufacturers ultimately will depend on demand, according to experts. Companies may have to pay extra to prioritize shipping or for air freight travel as the extended holiday and slow production ramp-up catches up to manufacturers. But if the virus worsens here, it could hurt demand. While that may reduce the need for expedited shipments, it could cause a host of other problems.
“The larger danger, in my opinion, is a demand-side collapse,” Michael Dunne, CEO of Hong Kong-based advisory firm ZoZo Go LLC, said Friday during a webinar held by the Center for Automotive Research in Ann Arbor. “People’s appetite for going out, buying things, doing things can go to nothing in a hurry. … It’s a time for extended uncertainty over the next several months and to get used it to as soon as we can.”
For now, automakers are facing the challenge of ensuring they have the parts they need. General Motors Co. CEO Mary Barra earlier this week said the company’s supply chain has been secured through late March.
“Out of an abundance of caution, we have made the decision to cancel,” a GM representative said in an email. The electric GMC Hummer reveal scheduled for May is still on pending review.
GM now also is requiring leadership approval for employees traveling domestically and internationally. Fiat Chrysler Automobile NV implemented similar measures earlier this week. The Italian American automaker is developing contingency plans and changing vehicle specifications where a certain part may be in short supply.
Ford Motor Co. has extended its restrictions on non-essential domestic and international travel for employees to April 17 from March 27. It remains on track to unveil its highly anticipated Bronco off-road SUV this spring.
“I’ll acknowledge we’ve been imaginative in how we’ve managed the issue so far, including the supply side in terms of specific forms they’ve taken,” Ford spokesman T.R. Reid said. “We can fulfill the needs of our customers. Second to keeping our people safe, that’s the top objective for us.”
About three-quarters of the dollar value of auto parts made in China that are imported to the United States are used to make vehicles, according to the Center for Automotive Research. The largest categories of imports were wheels, brakes and brake parts.
But “it doesn’t matter what we get from China because everyone else gets things from China,” said Kristin Dziczek, vice president of the Center for Automotive Research. “It’s a very layered and integrated global supply chain.”
The outbreak in China began just before the Lunar New Year holiday, a build-up in production prior has helped to reduce disruption for now, Dziczek said. It can take a month for two for shipments to reach North America — about as much inventory as automakers typically have on hand. That is compared to just two weeks to Japan and South Korea, causing early shutdowns at Hyundai Motor Co. and Nissan Motor Co. Ltd. there.
“That buffer is drawing down,” Dziczek said. “It’s going to start to bite really soon.”
And with greater consolidation of vehicle platforms, more factories are reliant on the same suppliers, causing a greater multiplier effect.
The result, experts predict, will be a reverse in trend of suppliers moving global production to China. In the 1990s, suppliers pivoted to China from producing in Southeast Asia as China’s economy continued to grow in the 2000s and 2010s. But trade tensions and two consecutive years of decreasing demand for automobiles there are changing the picture. Coronavirus is accelerating the change, ZoZo Go’s Dunne said.
“The urgency around that has just been amplified as manufacturers and suppliers have found with the events unfolding in China,” Dunne said. “Without sources outside of China, they’re extremely vulnerable.”
That likely means China production is moving up the value chain with what is made there staying there, said Paul Stepanek, owner of Complete Manufacturing and Distribution, an Asian consulting firm. Global parts production could return to other parts of Southeast Asia like India, Malaysia, Thailand and Vietnam.
“That,” Dunne said, “is a big new strategic direction for them.”