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The Era of The Volvo
Volvo has put two brand new, remarkable vehicles on the market today. They have embarked on an ambitious new era, formally unveiled the redesigned XC90, a flagship SUV whose sales performance will help recast the Swedish brand’s fortunes in the United States.
The 2015 XC90 — heralding new styling, room for seven, new safety technologies, more fuel-efficient engines and a more premium interior, all packaged on a new flexible platform — is the first vehicle developed by Volvo since its sale to China’s Zhejiang Geely Holding Group in 2010.
When it goes on sale in the United States early next year, the XC90 will join a growing but cutthroat premium midsize crossover market that is dominated by the Lexus RX and a throng of other European, American and Asian rivals.
Detailed pricing will be announced at a later date, but Volvo said today a well-equipped XC90 T6 with all-wheel drive will have a U.S. starting price of $48,900, excluding an estimated destination charge of $925. The XC90 T6 AWD will come equipped with navigation, 19” wheels, a power laminated panoramic sunroof, advanced connectivity, and is expected to deliver what Volvo says will be “best-in-class power and fuel efficiency.”
U.S. sales of the XC90 — one of the oldest models in the segment — have plummeted as the vehicle has aged. In the United States, Volvo sold 3,031 XC90s through July this year and 6,845 in 2013. U.S. sales peaked in 2004 at 39,183 vehicles, when there were fewer players in the segment.
Volvo has a lot riding on the second-generation XC90, which hasn’t been replaced or significantly upgraded since 2002. Company executives plan to leverage the XC90 rollout to spark momentum for the brand, and rebuild profits and operating margins.
It is coming online as Volvo’s U.S. sales have dipped 11 percent this year and fallen seven out of the last ten years. The brand’s U.S. sales peaked at 139,067 in 2004 and haven’t topped 100,000 units annually since 2007, even as the overall light-vehicle market remains on track to expand for the fifth consecutive year.
“This is one of the most important days in our history. We are not just launching a car but relaunching our brand. Today marks a new era for our company,” said Hakan Samuelsson, CEO of the Volvo Car Group. “The XC90 paves the way for a portfolio of exciting new cars to come over the next few years.”
If there is one silver lining for Volvo as it prepares to launch the XC90, it is that Americans have rediscovered SUVs and crossovers. U.S. deliveries of premium crossovers have jumped 12 percent this year through July, according to the Automotive News Data Center.
Still, the XC90 will compete with more than 20 nameplates including the Acura MDX and RDX, Lincoln MKX, the BMW X3 and X5, the Cadillac SRX, two Porsche models and the Audi Q5 and Q7. Audi and BMW have signaled intentions to expand their crossover lineups, and Jaguar and Maserati plan to market crossovers for the first time. Will the Volvo vehicles be able to compete against all of this competition?
Aston Martin Announces The Release of Their Lagonda
The new Aston Martin Lagonda will be an amazing car, but it’s not for everyone. Promising that the new super saloon will be the “finest of fast cars,” the new model will be hand-built in strictly limited numbers and if you want one, you’ll have to wait to be asked.
That’s because sales will be invitation only and, according to the company, offered exclusively in the Middle East — a decision it says it has made based on “specific market demand.”
When the William Towns-designed futuristic original Lagonda was revealed in 1976 it was one of the most technically complex, striking and expensive cars in the world. In fact it was so complex to build that Aston Martin struggled to keep up with customer demand (which came primarily from the Middle East).
Nearly 40 years on Aston Martin is a completely different company in terms of the technology and investment at its disposal and while it is still dedicated to the finest craftsmanship and personalization, it can now offer those services within a state of the art production facility, rather than a couple of draughty factory units.
Specific details about what prospective owners can expect from the new car remain a secret, and according to the company, as each model will be tailored exactly to an individual client’s demands unless an owner chooses to reveal particulars about his or her Lagonda, that’s the way that things are going to remain — confidential.
However, we do know that the new Lagonda will be built on the same platform as all of the company’s existing cars and that it will have a V12 engine under the hood, sending power to the rear wheels. And, of course, in terms of exterior design and expected price tag, the new car and the original will have a lot in common. This is an amazing vehicle, but if you want it, you are going to have to wait and how that you are asked.
Audi Gives Mercedes a Run For Their Money
Audi has a new strategy, get them well they are young and ready to buy. Audi is closing in on Mercedes-Benz in the small but crucial market for premium cars priced that start below $30,000.
In its first three months on the market, Audi’s A3 outsold the comparable Mercedes entry-level coupe almost 2 to 1, according to researcher Autodata Corp.
In June, the A3’s U.S. sales beat the CLA’s sales 2,452 to 1,658, according to Automotive News data. CLA sales have dropped in seven of the past eight months, a turnabout from last year, when the sporty four-door pushed Mercedes past BMW to become the U.S. best-seller and the most successful new Mercedes model in two decades.
“CLA was the only game in town for a while, and now there’s something to compare it to,” Michelle Krebs, an analyst at AutoTrader.com, said in an interview. “If you read some of the comparison tests, the A3 is coming out on top by a long stretch.”
While entry-level models represent just a fraction of overall sales for high-end luxury brands, the market is important. Carmakers use lower-priced vehicles to target young, upwardly mobile drivers who might become brand loyalists for life, eventually shelling out six figures for a top-of-the-line, high-margin sedan.
“The idea is to get them when their brand preference is being formed,” said Jesse Toprak, an analyst at Cars.com. “And then hopefully keep them as they make more money and upgrade.” Entering this market is a smart move on Audi’s part. It will be interesting to see what other luxury car manufactories will do to keep up to them.
Firefighters Free Puppy from Wheel Rim
Firefighters in Bakersfield, California, were put to the test Friday night when they had to rescue a pit bull puppy from a tight spot.
The puppy had its head stuck through the hub of an automobile wheel when its owner brought it to a Kern County fire station on Friday.
Fire Department spokesman Brandon Hill says two firefighters used vegetable oil to ease the dog’s head out of the hole.
The little pooch, named Junior, has returned to live with its owner and seven siblings.
Could your next Ford be made out of Ketchup?
Not exactly. But it could be made out of the byproduct in the production of ketchup.
Ford has found another unexpected material that it can use to make car parts, joining coconuts, soy, rice hulls and recycled blue jeans,
Ford says it has a deal with H.J. Heinz to use study whether the stuff left over from making ketchup, like dried tomato skins, seeds and stems, can be used to make composites. Sounds crazy? Well, Ford thinks the skins alone could make wiring brackets or center console storage bins.
Heinz has a lot of skins. It processes 2 million pounds of tomatoes a year.
“We are exploring whether this food processing byproduct makes sense for an automotive application,” said Ellen Lee, plastics research technical specialist for Ford, in a statement. “Our goal is to develop a strong, lightweight material that meets our vehicle requirements, while at the same time reducing our overall environmental impact.”
Introducing the New Nissan Leaf: Simpler Style, More Mileage
The Nissan Leaf became a breakthrough modern, mainstream electric car. Now Nissan officials are opening up about how they want to proceed with the next generation of the model.
Most important will be range. Nissan wants to double it from the current Environmental Protection Agency rating of 84 miles per charge, the News says. That improvement, based on new battery chemistry that Nissan thinks it has in the wings, would dramatically improve the car’s practicality. The improved battery should be ready in 2017.
“The battery chemistry is all about range and energy density. That’s where you see the technology moving very, very fast,” Nissan’s Andy Palmer is quoted as saying last month at the Beijing auto show. “This really is the game-changing technology.”
Then there are its looks. Leaf was designed to look distinctive, much the way Toyota scored by giving the Prius hybrid its own look so that customers can proclaim their environmental consciousness every thing they drive. For the next generation, however, the car will be made to fit more into mainstream of styling out on the streets.
Apps and Other Aids to Limit Distracted-Driving Enter the Market
Texting and driving is dangerous, it’s a fact. Distracted driving was cited as the cause of more than 3,300 deaths nationwide in 2012 and thousands more injuries. With new technology, our phones may actually help us stay focused behind the wheel.
Surveys show that drivers recognize the danger of distracted driving, and 43 states and the District of Columbia forbid texting while driving, yet large percentages of drivers — including roughly three-quarters of teens and other young drivers — continue to do it anyway. We have not managed to put down our devices long enough to get from point A to point B, even under threat of death or injury.
For all of us who know better, but can’t seem to police ourselves nor our driving-age children, a market has emerged for apps and other aids that limit distracted-driving for us.
Cellcontrol, of Baton Rouge, La., is one of a growing number of third-party suppliers of systems that let an administrator, likely a parent, to limit their child’s phone use while the car is in motion. Cellcontrol charges $119 to $129 for its device, which either plugs into the car’s diagnostic computer or adheres to the windshield in the form of a small black transponder.
The device determines when the vehicle is in motion and disables phone functions to the administrator’s preset customized levels, such as enabling only calls to emergency numbers or preventing texting. Hopefully a decrease in distracted driving thanks to apps means a decrease in fatal accidents.
New CEO for Ford Motor Co.?
According to Bloomberg News, Ford’s COO Mark Fields may step into the company’s CEO job later this year, replacing Alan Mulally.
Bloomberg, which cites unidentified sources, says Ford could announce the promotion and reveal Alan Mulally’s retirement date as early as May 1. It would be the second shoe to drop after Ford promoted Fields, 53, to the chief operating job in December 2012, making him Mulally’s heir apparent. A new announcement could reassure company employees and Wall Street. Both were rattled by rumors late last year that Mulally might leave Ford to take the top job at Microsoft Corp. He didn’t deny the conjectures until January. Mulally, 68, has said he intends to remain the automaker’s boss through 2014. But disclosing his retirement date soon might give him an extra chance to bask in the glow of the strong first-quarter earnings Ford is expected to report on Friday.
Spokeswoman Susan Krusel says the company won’t comment on the speculation about an imminent statement about Fields. Ford has nothing new to say about its internal succession plans, she adds. “If anything were to change, we’d let everybody know.”
Car Manufacturers Prepare for Flood of Used Cars on Market
The off-lease vehicle surge to hit in 2016 could have significant impact on buyers’ wallets and overwhelm dealers. The used-vehicle inventory drought is almost over.
This year, according to Manheim projections, about 2.1 million off-lease vehicles will return to the market, up from 1.7 million in 2013. Manheim also predicts that number will grow to 2.5 million in 2015.
In 2016, and for several years thereafter, the number will exceed 3 million, Manheim predicts.
That’s good news for dealers who are struggling to find reasonably priced late-model used cars and trucks — the fallout of three years of slumping new-vehicle sales and a lease market that all but dried up in 2009.
But it will mean a double whammy for new-car buyers. Greater supply will mean lower prices for used vehicles, thus reducing the trade-in value of a shopper’s current vehicle.
Mercedes is looking to expand production in North America
Mercedes is reporting possible expansion and more jobs to its North American plants.
Daimler is looking to add production capacity in North America for both its compact and rear-wheel-drive models, CEO Dieter Zetsche said.
Plans are in the “very early” stages for the rear-wheel-drive vehicles and “it is totally open,” Zetsche said on Tuesday on the sidelines of the Geneva auto show here.
He would not say whether Mercedes-Benz is looking to expand its factory in Vance, Alabama, or build a new plant. Mercedes just began production of the redesigned rwd C-class sedan in Alabama, primarily for the U.S. market.
Alabama builds the all-wheel-drive M- and GL-class crossovers and will add a M-class coupe crossover next year.
To cope with the shortage of front-wheel-drive cars, Mercedes is adding shifts and outsourcing some production to contract manufacturer Valmet in Finland. There are already shortages of the CLA sedan in the United States that aren’t likely to be remedied until early summer.