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Nutson's Weekly Automotive News Digest - August 1-7, 2016; MBS, Cooling Car Sales; Hot Volt, Recalls of Course


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* The Center for Automotive Research presented their 51st Management Briefing Seminar conference in Northern Michigan this past week where executives, engineers, policy makers and pundits gathered to assess the state of the automotive industry, share what’s new and talk about where it is going. The general consensus is that a downturn is probably coming but not too soon. This year is expected to be another strong year for auto sales at around 17.5 million units with 2017 probably achieving just a tad less. This auto industry is notoriously cyclical and we’re about due for a modest contraction.

* A rousing discussion at the CAR Management Briefing Seminar this week surrounded the federal government’s CAFE (corporate average fuel economy) standards and whether or not the government will hold to the 54.5 mpg by 2025 plan or if will be mitigated because of sustained consumer demand for larger, less efficient vehicles. The EPA official in attendance said no way will it be changed but analysts mostly think it will be. The entire CAFE plan is due for a comprehensive review next year.

* July weather was hot but new vehicle sales cooled. About 1.51 million units were sold bumping up just under 0.5% from last year. Nissan, FCA, Honda, Mazda and Hyundai/Kia had increases. Ford, GM and Toyota were down. Everybody still wants an SUV.

* Delphi will test self-driving cars in Singapore aimed to eventually make it easier for commuters transiting the “first mile” and “last mile” between a mass transit station and their home or work place. Delphi will provide six fully autonomous vehicles (initially with a driver on-board) and will develop a cloud-based mobility-on-demand software (AMoD) suite. The trial of an urban, point-to-point, low-speed, autonomous, mobility-on-demand service in Singapore’s Autonomous Vehicles Test Bed will be located at one-north, a business park in the western area of the city. The three year program plans to transition into an operational service by 2022 timeframe. Other pilots are planned by Delphi for locations in North America and Europe in the future.

* U.S. News & World Report named the 2016 Mazda3 the Best Car for Teens in the $25K to $30K category, beating the Honda Civic in this specific price bracket. Mazda3 was the ultimate standout when looking at overall quality and advanced safety features that would be best for teens on the road these days. Note: We at The Auto Channel support that new teen drivers be provided the most-safe car possible to drive during those early years of learning.

* The Buick Avista received the 2016 Concept Car of the Year and the Most Significant Concept Vehicle of the Year at the 2016 North American Concept Vehicle Awards ceremony at the Concours d’Elegance of America in Plymouth, Michigan. The awards recognize the vehicle that makes the strongest impact in terms of automotive design, engineering and market responsiveness. The Avista is both an indicator of Buick’s future design direction and a celebration of its deep design heritage. The VW Budde was named the 2016 Concept Truck of the Year.

* The historic Connecticut road course, Lime Rock Park, has announced an expanded “Road to 60” program, seeking fan support to help prepare for the facility’s 60th anniversary in 2017. The 1.5-mile circuit held its first race on April 28, 1957, when about 7,000 fans showed up for an SCCA New England Region event, and in the years since, it has played host to some of racing’s finest drivers. Fans are being asked to acquire memberships that will allow the track to properly celebrate with many improvements. For more information, go to: LimeRockRoadTo60.com.

* Media reports have it that Tesla officials have told U.S. Senate committee staff members that they suspect the deadly crash of a Tesla Model S was caused by a failure of the camera or radar for the car’s automatic braking system. Joshua Brown, 40, of Ohio, was killed in a crash in Florida in a 2015 Model S that was operating with its Autopilot driver-assist system engaged. The car failed to recognize a semi-trailer that turned left in front of it at a highway intersection.

* At its 2010 debut GM said it expected to sell 60,000 Chevrolet Volts a year. Now after more than six years GM celebrated selling its 100,000th Chevrolet Volt. The Volt’s best sales year was in 2012 when about 23,500 were sold.

* The Buick Y-Job concept car, designed by GM's design team led by the legendary Harley Earl, is the 14th vehicle entered into the National Historic Vehicle Register. Designed in the late 1930s, the Y-Job predicted the design trends of the 1950s and beyond, and is regarded by many as the first American concept car.

* Ford is recalling about 830,000 vehicles in the U.S. and Mexico because the side door latches can break and the doors can open while the vehicles are moving. The recall covers certain 2013 to 2015 Ford Escape SUVs and C-Max cars, and 2012 to 2015 Focus cars. Also included are 2014 to 2016 Ford Transit Connect vans, and Ford Mustang sports cars and Lincoln MKC SUVs from 2015.

* The Monterey classic car week comes up in just a couple weeks with the famous Pebble Beach Concours d’Elegance and associated events including the RM Sotheby’s Monterey Auction. Feature car at the auction will be Carroll Shelby’s own original Cobra which never left his possession. The official description of the car from RM Sotheby’s refers to it figuratively as “the actual pen with which he signed his declaration of war [on European road racing legends] and the idea upon which he built his company." The auction will take place August 19-20 at the Portola Hotel. Bring your check book and a multi-million dollar letter of credit.

* The Detroit News reported this week that reliable sources within GM say the company plans to begin selling the long-rumored mid-engined Corvette in early 2019. Chevrolet has not commented. The report quotes Bob Lutz, former product development boss, as confirming the company had plans for the mid-engined Vette in the pipeline until the bankruptcy ended that plan in 2010. It also reports the mid-engined Vette is now being honchoed by Mark Reuss current boss of product development.

* The National Insurance Crime Bureau is out with its newest list of most stolen vehicles. Top on the list are Honda Accord, Honda Civic, Ford F-Series, Chevy Silverado and Toyota Camry. Older models are most vulnerable, though the report indicates newer models with anti-theft equipment are not without risk of theft. Most stolen new cars (2015 models) include Nissan Altima, Chrysler 200, Toyota Camry, Toyota Corolla and GMC Sierra. The report does not specify, but we speculate the most-stolen may correlate with the most popular models.

* Are VW diesel problems causing delays in getting other diesel powertrains approved for U.S. sale? It looks that way. BMW diesel models for 2017 were just approved by the Environmental Protection Agency after a significant delay and Mercedes diesels have still not been approved. Mercedes will be offering its first diesel C-Class, if approved, though they sell the car in many other markets. BMW, Jaguar Land Rover and Mercedes all plan to increase diesel offerings in the U.S. while VW struggles to transcend their cheating scandal. We also expect a diesel in the Chevy Cruze.