Detroit Bureau on Twitter

Archive for the ‘Executives’ Category

Toyota CEO “Sad” About Being Declared “National Security Threat,” But Plans $3B More in U.S. Investments

Tariffs actually could backfire and see investment plan cut back, warns top Toyota official.

by on Mar.15, 2019

Toyota CEO Akio Toyoda called the prospect of his company being called a "national security threat" by the Trump administration "sad."

Toyota plans to boost by $3 billion its investment in the U.S. market, a decision that comes as the automaker – and other foreign-based brands – are facing the possibility of huge new tariffs from an American president who has labeled them a “national security threat.”

That designation is something that “makes feel sad,” Akio Toyoda, the Japanese giant’s CEO, said during an appearance at the Economic Club of Washington. “I hope that this kind of conversation can go away,” the grandson of Toyota’s founder said through an interpreter.

Business News!

Separately, the head of Toyota’s North American operations cautioned that those planned investments, which include $749 million to upgrade existing plants in five states, could be cut back if the Trump administration moves ahead with tariffs, something experts have warned could actually result in lower U.S. car sales and a sharp loss of automotive jobs. (more…)

Safety Advocates Push for Adoption of Drunk Driving Deterrents

Groups pushing for installation of devices in new vehicles.

by on Mar.15, 2019

Former NHTSA Chief Joan Claybrook is leading the charge for ignition interlock devices to prevent drunk driving.

Safety advocates and other groups are looking to add some momentum to new ignition interlock technology that would prevent drunk drivers from getting behind the wheel and driving, saving thousands of lives annually.

Joan Claybrook, a former administrator of the National Highway Traffic Safety Administration (NHTSA), urged Congress to pass a law forcing automakers to include passive ignition-interlock systems in all new motor vehicles within as little as three years.

Subscribe Now!

“I don’t know what’s the matter with the industry on this issue,” Claybrook said during testimony Thursday before the House consumer protection and commerce subcommittee. (more…)

Mustang Electrified?

Ford counter-programs debut of the Tesla Model Y and hints of a high-performance CUV to come.

by on Mar.15, 2019

“Hold your horses,” or so said Ford Motor Co. in a tweet not-so-coincidentally timed to reach the social media world just as Tesla CEO Elon Musk was getting ready to debut his company’s new Model Y battery-electric SUV.

The Ford post featured that short blurb and a blue version of the Mustang logo against a black background, nothing more. But it does hint at several projects that Ford has already confirmed are in the works. That includes both a hybridized version of the pony car, as well as a Mustang-influenced all-electric SUV that Ford announced during the 2018 North American International Auto Show in Detroit.

Electrifying News!

An early player in the electrification field, Ford has fallen behind not just Tesla but conventional rivals like General Motors and Volkswagen, both investing heavily in long-range, battery-electric vehicles, or BEVs. Ford officials say they are going to make a push to catch up and have confirmed that the first entry into next-gen electric technology would be a performance-oriented crossover tentatively named Mach 1 and due to market about when the Tesla Model Y hits the street about a year from now.

(more…)

SEC Suing VW, former CEO, for ”Massive Fraud” in Emissions Cheating Scandal

Lawsuit "legally and factually flawed," the automaker responds.

by on Mar.15, 2019

Former VW CEO Martin Winterkorn faces legal problems in Germany, as well as the U.S.

Volkswagen’s ongoing efforts to end a scandal triggered by its cheating on diesel emissions testing just took a turn for the worse, the Securities and Exchange Commission accusing both the automaker and former CEO Martin Winterkorn of committing a “massive fraud” on U.S. investors.

The automaker has acknowledged it used “defeat devices” to rig its diesel engines to illegally pass emissions tests and has so far laid out over $30 billion in fines and settlements. It is still facing other legal headaches, including a separate lawsuit by investors and ongoing investigations in Europe, one resulting in the arrest and jailing of the former CEO of its Audi subsidiary. But it responded to the latest challenge by declaring the SEC lawsuit “legally and factually flawed.”

Breaking News!

The SEC lawsuit, filed in San Francisco, claims the automaker and former CEO Winterkorn concealed the depth of the scandal – and the potential penalties – from both investors and federal regulators. The Thursday complaint noted that in the year before the cheating was discovered and publicized by the EPA Volkswagen issued $13 billion in bonds and securities in the U.S. Those value of those financial devices were directly impacted once the carmaker’s subterfuge was revealed.

(more…)

As Tesla Model Y Debuts, Musk Asks: Do You Think We’re “S3XY”?

New Model Y to be offered in four distinct versions – but economy buyers will have to wait.

by on Mar.15, 2019

The Tesla Model Y is likely to look quite familiar to fans of the earlier Model 3 sedan.

The long-awaited Tesla Model Y made its formal debut on Thursday night, with CEO Elon Musk declaring it takes an already attractive line-up and makes it “S3XY.” The inside joke adds the new electric SUV to the automaker’s existing line-up of Models S, 3 and X.

But there’s a serious side to the launch. Tesla continues to struggle to right its balance sheet, plunging back into the red this quarter after earning money during the second half of 2018. The Model Y is expected to become Tesla’s best-seller, Musk declared, telling his audience “we’ll do more Model Ys than S, X and 3 combined.” And that includes not just the U.S. but also China, where Tesla is struggling to get a foothold in the world’s largest market for battery-electric vehicles.

Breaking Product News!

The Model Y will be one of the vehicles Tesla plans to produce once it opens up a new plant in Shanghai later this year. That will give it a way to hold costs down and also to sidestep any escalation in the U.S.-China trade war.

(Here’s our Model Y preview. Click Here to see how close we came.)

(more…)

What to Expect When Tesla’s Model Y Rolls Out

New electric-SUV could double sales of Model 3.

by on Mar.14, 2019

The Model Y debuts tonight and will be more expensive than the Model 3.

In a market where SUVs and CUVs have overwhelmed traditional sedans and coupes, there’s a yawning gap in the Tesla line-up that the upstart automaker intends to fill in the months ahead.

And the process will begin this evening when CEO Elon Musk pulls the wraps off the Tesla Model Y. Set to become the fourth product in the automaker’s portfolio, the battery-SUV could outsell all existing Tesla products combined, at least if a recent forecast by CEO Elon Musk proves accurate.

Subscribe Now!

“We will probably see higher volumes for Model Y than Model 3, (perhaps) double,” the 47-year-old exec said during a late January conference call with auto analysts and journalists. (more…)

Porsche Grabs Top Score in Power Customer Service Index

Buick takes top honors in non-premium segment.

by on Mar.14, 2019

Porsche took first place in JD Power's 2019 Customer Satisfaction Index, ahead of Lexus and Cadillac.

Communication is key to the success or failure of any relationship, and perhaps nowhere is that more true than in the service department of an auto dealership.

Auto dealers that communicate the best, i.e. the way consumers want, finished atop J.D. Power’s new Customer Service Index ranking. This year, that means Porsche, Lexus and Cadillac took the top three spots in the luxury car rankings.

News Now!

In the mainstream results, Buick, Mini and somewhat surprisingly, Mitsubishi took the first three spots. Mitsubishi’s third-place finish came as a result of the greatest improvement (27 points) in the entire study year-over-year. (more…)

Audi Planning Dozens of EV Concepts, Production Models

But shift threatens familiar models, like the TT.

by on Mar.14, 2019

The Q4 e-tron appears to be about the same size as the current Q3, and is expected to hit the road in 2021.

Few automakers have decided to plug into electrification like Audi, the luxury arm of Volkswagen AG showing off an assortment of concepts and production models over the last year. Now, the automaker says, its push is ramping up, with as many as three dozen battery-electric products in the pipeline.

Audi is echoing the direction being blazed by its parent, VWAG CEO Herbert Diess yesterday announcing the company’s dozen passenger brands expect to sell a collective 22 million battery-electric vehicles by 2029, a 50% increase from its previous forecast.

Product News!

But the transition to electric won’t come cheap. The billions of euros Audi and its parent are investing in electrification will drop the luxury brand’s own operating return on sales to between 7 and 8.5%, officials said during a meeting at brand headquarters in Ingolstadt, Germany, compared to a long-term Audi goal of between 9 and 11%. (more…)

VW Drafts Plan to Cut 7,000 Workers in Europe

Automaker looking to offset rising EV development costs.

by on Mar.14, 2019

Volkswagen AG COO Ralf Brandstaetter said the company will be cutting thousands of jobs in Europe.

Following in the footsteps of some American automakers, Volkswagen AG is preparing to trim costs by eliminating thousands of jobs in face of a slowing European economy, and profits across the industry begin to slip while the high cost of shifting to electric vehicles and self-driving cars adds up.

The German carmaker said Wednesday it will eliminate as many as 7,000 positions – with measures including early retirement and not filling vacant positions – to achieve an annual profit gain of 5.9 billion euros $6.7 billion starting in 2023.

Business News!

GM recently cut 4,000 white-collar job and plans to close five plants while Ford is in the midst of an $11 billion restructuring plan that will include cutting a slew of salaried personnel, plus the announced closure of its plant in Brazil, resulting 2,700 losing their jobs. (more…)

Back From the Big Apple: Cadillac Comes Home With Expanding Line-Up of CUVs and BEVs on the Way

New brand boss outlines a mix of short- and long-term strategies aimed at reviving its “renaissance.”

by on Mar.13, 2019

The 2019 Cadillac XT4 is the brand's newest offering is now the top seller in its segment.

The boxes still have to be unpacked, but Cadillac is back from the Big Apple, ending a four-year experiment designed to put the brand more closely in touch with one of the country’s top luxury car markets. Instead, it needs to bring closer together the folks who will both design and then market the wave of new products that will be rolling out over the next decade, brand boss Steve Carlisle said during a Wednesday lunch meeting.

Long billed as the “standard of the world,” Cadillac has slipped well behind key competitors like Mercedes-Benz, BMW and Lexus. But last year’s surge in global sales suggests Caddy may finally be making some of the right moves – beyond last week’s closure of its offices in New York’s tony SoHo neighborhood.

Product News!

In a broad-ranging discussion, Carlisle outlined both the short and long-term steps Cadillac is taking in its bid to become a truly relevant luxury car player once again. It’s a move that has already begun with a shift in the brand’s product portfolio. (more…)