Author: CNBC Online news

RAM Trucks wants a bigger piece of hot heavy-duty trucks with new Detroit debut

Source: Ram
2019 Ram 3500 Heavy Duty Limited Crew Cab Dually

RAM Trucks has stolen the limelight with its 1500 pickup truck in the eyes of many auto industry watchers. Now it wants to spread a bit of that magic out to larger work pickups.

Fiat Chrysler released an updated lineup of heavy-duty pickups at the Detroit auto show on Monday.

With the new models, RAM is aiming at truck buyers who want to use the truck for work, but also want nice interiors and features that make the truck usable as a family or recreational vehicle on the weekend.

While the trucks have serious towing capability and payload capacity, RAM is also outfitting them with features designed to make the ride as pleasant as possible for drivers. Cabins are equipped with active noise cancellation, anti-vibration devices and acoustic glass.

The truck maker also says it has exclusive rear air suspension that has a special driver-activated Bed Lowering mode, a normal mode for driving with a payload in the bed and a Trailer-Tow Mode.

The introduction of the new vehicles is another shot fired in the ongoing battle between the three big American truck makers.

U.S. truck sales, especially full-size truck sales are dominated by the three American manufacturers: Ford, General Motors, and Chrysler. RAM has historically come in third place in sales, behind Ford and GM.

But bold design choices and upscale, feature-rich interiors have earned RAM's light duty full-size line, the RAM 1500, has praise from critics and a jump in sales.

“It's all part of the truck wars,” said Michelle Krebs, executive analyst for Autotrader, a website that connects car buyers and sellers.

Commercial and work-focused trucks and vans were extremely good in 2018, she said. Sales defied Autotrader forecasts by rising instead of falling, in large part because tax reform provided a benefit for businesses to buy vehicles.

“If you looked at the commercial van segment, that was up,” she said. “Big trucks were up. Ford has done very well with its Super Duty trucks. So Ram is looking at doing just as well. And GM is coming out with a new Silverado medium duty and heavy duty this year. So it's the war of the big trucks this year.”

Ford’s CEO says a ‘big surprise’ is coming next year with electric vehicles

Ford CEO Jim Hackett on restructuring, going electric and China's slowdown
2 Hours Ago | 10:00

Ford Motor is gearing up to launch new electric cars as soon as next year, CEO Jim Hackett told CNBC on Sunday.

Ford has previously announced its plans to invest $11 billion in electric vehicles by 2022 and produce 40 hybrid and fully electric cars, in a plan to revive its slowing business. However, the company's chief told CNBC that drivers should be prepared for 'a big surprise' from Ford.

“We talked about a huge investment in electric vehicles. We have 16 models that are in design and development. We have a pretty big surprise coming next year,” Hackett told CNBC's Phil LeBeau on the sidelines of the Detroit Auto Show, which kicks off this week.

During the first nine months in 2018, Ford's profit dropped a whooping 27 percent from the same period in 2017. Shares of Ford, which tumbled 39 percent in 2018, are hunkered under $10 a share for the first time since 2012.

“Some of the pain in the margins additionally [is] because the vehicles are old. We have on average the oldest fleet in the industry and we are going to have average the newest fleet. 75 percent of the portfolio is being turned over,” the CEO said.

The company is also in the middle of a massive restructuring with an aim to slash costs by $14 billion over the next five years. Ford recently announced plans to cut thousands of jobs in Europe as well as discontinuing some unprofitable lines there.

Yet in the face of a skeptical market Hackett defended Ford's moves to right its ship. He told CNBC that investors “needed to be a little patient with some of the long-lived problems that haven't been addressed that I'm going to represent. In less than 19 months, I've addressed every one of them.”

Many companies have expressed concerns about American brands potentially falling out of favor in China. For example, tech giant Apple cut its forecast in January, sounding alarms that an economic slowdown will weigh on its business. However, Hackett is not so worried.

“China's optimism is still high with us,” he told CNBC. “The brand is one of the highest-ranking brands in the country. Even at the highest levels of the government they see it as a family-owned business that middle America loves. The Chinese want to relate to American businesses like that,” Hackett added.

Nissan aims to take on Tesla by giving its electric vehicle Leaf major range, performance boost

Photo: Paul Eisenstein
2019 Nissan Leaf

With a growing number of long-range battery-cars coming to market, Nissan's own electric vehicle, the Leaf, has been in danger of coming unplugged.

But the Japanese automaker is hoping to attract potential buyers with the launch of a new model that gives a 50 percent boost to both range and performance.

The new Nissan Leaf Plus will go on sale in early spring and will deliver an estimated 226 miles per charge of its lithium-ion battery. That's more than triple the range of the original Leaf which, when launched in 2010, was the world's first mainstream battery-electric vehicle, or BEV. The second-generation Leaf, launched two years ago, yielded 150 miles per charge. The latest model, which will be known as the Leaf e+ outside the U.S. and Canada, will now fall in line with a surge of long-range competitors, such as the Tesla Model S, Chevrolet Bolt EV and Hyundai Kona EV.

“This deserves to be called a big bang,” Denis LeVot, the CEO of Nissan North America, said during a conversation with CNBC following the debut of the 2020 Leaf Plus at the Consumer Electronics Show in Las Vegas Tuesday night.

A long with the boost in range, the updated battery car will also deliver better acceleration, Nissan promised. While it didn't offer specific performance figures, Japan's second-largest automaker said the updated hatchback's single electric motor will now punch out 217 horsepower, up from 147 when the second-generation Leaf launched, with torque climbing from 174 to 250 pound-feet.

The Leaf Plus relies on a 62 kilowatt-hour battery pack, about 50 percent bigger than the 2017 model and the mere 24 kWh pack in the original, 2010 Leaf. Like the earlier versions, however, the latest battery-electric vehicle will remain air-cooled, rather than the more advanced liquid cooling found in its key competitors. Nissan claims the approach requires few compromises but means a less complex — and thus less expensive — product.

The automaker won't release final pricing until the Leaf Plus goes on sale in early spring. But at a starting price of $29,990, the current model is one of the least expensive all-electric models on the market.

Since the debut of the original Leaf, Nissan has sold about 365,000 to customers around the world, LeVot pointed out, making it the best-selling BEV on the market. But it has been losing momentum as new competitors have come to market. The Tesla Model 3 is now the best-seller on a monthly basis and likely to pass Leaf's overall record this year if current demand holds, according to industry analysts.

“Ideally, Nissan should have had this long-range model at (the) launch” of the second-generation Leaf in 2017, said Sam Abuelsamid, a senior analyst with Navigant Research. “They absolutely needed to bring this out to remain competitive.”

For his part, LeVot said he is confident the long-range Leaf will help rebuild demand for Leaf in a market just beginning to embrace electrification in all its various forms. And, if anything, he added, “competition growing is not a bad thing. It is converting (more) people to electrification.”

By various estimates there will be as many as 100 all-electric vehicles on the market by the end of 2020, along with scores of hybrids and plug-in hybrids, the latter extending range by blending gas and electric powertrains on the same platform.

Nissan was an early proponent of electrification, along with French alliance partner Renault, but it has been slow to expand its line-up – at least until now. The automaker is expected to signal an acceleration of its battery strategy at the North American International Auto Show in Detroit next week. It is expected to reveal a concept vehicle that will signal the future direction of the Nissan brand. While LeVot would not discuss what's coming in Detroit, Nissan has already confirmed it's upscale Infiniti brand will also signal its battery-car plans during the auto show with its QX Inspiration concept.

Nissan's global CEO Hiroto Saikawa last year announced that Infiniti will electrify virtually its entire line-up starting in 2021.

During his presentation at CES, North American chief executive LeVot did confirm that there will be “eight models electrified or fully electric” available through the two brands by 2020, with the parent company expecting to sell 1 million battery cars worldwide in 2022.

If anything, the increase in range with the Nissan Leaf Plus will be just the beginning, he told CNBC, suggesting that “in three to four years, we could have 300-mile” ranges on some models. That would be in line with the top products from Tesla, though some manufacturers are now looking at pushing up into 400-mile territory as lithium-ion technology improves.

A number of manufacturers are using this week's CES to discuss their electrification strategies, including some new brands such as Chinese-owned Byton. It showed off a long-range model dubbed the M-byte it expects to put into production by the end of this year at a new plant in China, with U.S. sales set to begin by the third quarter of 2020.

Mercedes-Benz also showed off its first long-range electric vehicle in Las Vegas, the EQC set to launch later this year.

Disclosure:
Paul Eisenstein
is a freelancer for CNBC. His travel and accommodations for this article were paid by an automaker.

Cadillac debuts 3-row crossover XT6 to lure luxury buyers from rivals

Source: Cadillac
The 2020 Cadillac XT6

Cadillac debuts its three-row XT6 sport utility vehicle at the Detroit auto show on Sunday, filling out a lineup of luxury SUVs that many industry analysts say is long overdue.

In recent years, the brand once known as the “Standard of the World” has taken heat for being slow to respond to the shift toward crossovers and SUVs. With the XT6, Cadillac now has crossovers in three different segments, plus the full-size Escalade SUV.

The XT6 is a crossover, which blends elements of cars with a traditional truck-based SUV. It comes with a 3.6 liter V6 engine and a nine-speed automatic transmission. Buyers will be able to choose between one design option that emphasizes luxury, and another that focuses on performance.

The car will offer customers a blend of spaciousness, safety and convenience features, said Cadillac President Steve Carlisle.

Cadillac had a big hit with the Escalade in the early 2000s, but GM's premier brand later turned away from SUVs to focus on sedans and performance cars — just as the public was moving in the opposite direction. Cadillac suffered as rivals beefed up their SUV lineups.

Now, the brand is playing catch-up.

Source: Cadillac
The 2020 Cadillac XT6

In recent years the company has begun releasing a slew of SUVs meant to target these gaps, as the brand phases out slower selling sedans. Cadillac debuted the compact XT4 crossover at the New York International Auto Show in 2018, and the mid-size XT5 back in 2015.

Given how strong GM's other brands are — such as Chevrolet and GMC with SUVs and trucks — it is odd that Cadillac took so long to enter the SUV space, said Jeff Schuster, president of global forecasting at LMC Automotive, a group that tracks the automotive industry.

The Escalade is a notable exception. It appeals to certain types of customers who either need an exceptional amount of space, or are buying the vehicle for its styling as a status symbol — or for the image associated with it.

As customers move out of sedans and compact cars, they are moving into vehicles just like the XT4, XT5 and XT6, which Cadillac is releasing years after rivals have already been in the market.

“I think the jury is still out, quite frankly, on where they go from here and how much they can accelerate within the premium segment,” Schuster said. “They are not quite there yet, but they are doing what they can. They are getting the vehicles out, which I think is something they needed to do sooner and now we are starting to see them.”

The XT4 and XT5, however, have been strong sellers in their segments, suggesting that Cadillac can play well in the market, even if it is late to the game.

GM says 2018 earnings exceeded expectations and 2019 looks even better

GM raises guidance for 2019 as it focuses on light truck production
42 Mins Ago | 04:28

General Motors CEO Mary Barra said the automaker's full-year 2018 earnings exceeded its previous expectations and that 2019 is looking even better, citing strong sales in China and high demand for its truck and utility vehicles in the U.S.

“From a 2018 perspective, it is not only a focus on really capitalizing on the new trucks we have out there, the light duty trucks, but also the focus on cost reduction so it was across the board. Every element of the company,” Barra told CNBC's Phil LeBeau.

The second largest U.S. automaker had previously told investors it expected 2018 adjusted earnings of between $5.80 and $6.20 a share and adjusted automotive free cash flow of $4 billion. It now expects to surpass those projections and painted an even better picture of 2019, Barra said Friday.

She forecast diluted adjusted earnings per share of between $6.50 to $7 and adjusted automotive free cash flow $4.5 billion to $6 billion for 2019.

GM's shares surged 6 percent in premarket trading on the news.

Barra also said GM tightened its belt last year, helping to boost earnings. She announced several plant closures and 14,000 job cuts in November. The reorganization is estimated to save about $6 billion by the end of 2020, with about half of those cost savings realized by the end of 2019, the company said at the time.

Barra said the job cuts were a “proactive” move in an otherwise strong labor market.

“We have been transparent with the [United Auto Workers union], helping them and making sure they understand the business and that customers' preferences are changing,” she told reporters on a call Friday morning.

GM plans to expand its footprint overseas with a global family of vehicles it is set to launch in China this year, Barra said on the call. She said GM has 20 new or updated products coming out in China.

“When you step back and look at China, we have been there for 20 years, we have had tremendous success, we have very strong brands,” she told LeBeau. “We think that the trade talks that are going on right now are very constructive, the fact they have extended this round to have even more discussion, the next is already scheduled, we know there is discussion of durable goods stimulus in country that we think will apply to autos.”

Cadillac will become the company's lead electric vehicle brand, it said. It's projecting just over 17 million in total U.S. vehicle sales in 2019 and 27 million in China — about flat from 2018. She said annual auto sales in China will eventually climb to 30 million.

WATCH:
CNBC's full interview with General Motors CEO Mary Barra

Watch CNBC's full interview with General Motors CEO Mary Barra
59 Mins Ago | 09:49

Nissan cancels lease on ex-Chairman Ghosn’s Tokyo apartment

Takashi Aoyama | Getty Images
Pedestrians walk past a big screen showing images of Former Nissan Motor Co. Chairman Carlos Ghosn in a news program on Jan. 8, 2019 in Tokyo, Japan.

Nissan Motor has terminated the lease to ex-Chairman Carlos Ghosn's luxury apartment in Tokyo, Ghosn's legal team said on Friday, as the Japanese automaker cuts ties with the executive following his arrest in November.

Nissan confirmed it had sent Ghosn's Japan-based legal team a termination notice on his residence in Azabu, one of Tokyo's priciest neighborhoods, on Monday, the latest step in ending its relationship with Ghosn, who is facing financial misconduct charges in Japan.

In the wake of Ghosn's arrest, the automaker is also planning to terminate other agreements under which it had been providing residences to Ghosn, a person with knowledge of the issue told Reuters, including the lease agreement on an apartment in Amsterdam.

In addition, it is no longer making payments on his residence in Paris, the person added on condition of anonymity due to the sensitivity of the matter.

Nissan was not immediately available to comment on the additional residences.

As chairman of Nissan, Renault and Mitsubishi Motors, the globe-trotting Ghosn had access to a string of residences around the world, including additional homes in Beirut and Rio de Janeiro.

Tokyo prosecutors are expected on Friday to indict Ghosn on two new financial misconduct charges, adding to his legal challenges. Ghosn has denied all of the allegations against him.

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Tesla feature that gets car to follow you like a pet will ‘probably’ be available soon, Musk says

Spencer Platt | Getty Images
The inside of a Tesla vehicle is viewed as it sits parked in a Tesla showroom and service center in Red Hook, Brooklyn on July 5, 2016.

A Tesla feature that gets your car to follow you around like a pet and auto-park is undergoing regulatory approval and will “probably” be available for some customers soon, CEO Elon Musk said on Twitter on Thursday.

“Going through final validation & regulatory approval,” Musk said of Summon+, a planned upgrade to Tesla's Summon auto-parking feature. “Probably releases to early access program owners in a few weeks. It's trippy!”

However, the auto executive added the caveat that the firm might not be able to roll out Summon+ in all of the markets it operates in, saying it was “getting some regulatory pushback.” He didn't elaborate on those regulatory hurdles.

Musk said back in November that cars operating with Summon+ will be able to “drive to your phone location & follow you like a pet,” and that users will be able to control their car remotely “like a big RC car.”

He said at the time that the upgrade would be compatible with all Tesla cars made in the past two years.

The technology is part of Tesla's Autopilot self-driving system. It currently lets Model S and Model X drivers park their car in tight spots and get it to move short distances remotely using the Tesla app.

Tesla's CEO recently broke ground on a new factory the firm is opening in Shanghai, and met with Chinese Premier Li Keqiang to discuss the plans.

Li told Musk at their meeting that he hoped the firm could become an “in-depth participant of China's opening and a promoter of the stability of China-U.S. relations.”

Ford unveils the new 2020 Explorer, the popular SUV’s first redesign in 8 years

Ford reveals all-new Explorer with upgraded tech features
2 Hours Ago | 00:56

With more and more consumers looking to buy a midsize SUV, Ford is rolling out a fresh version of its iconic Explorer model. Unveiled Wednesday in New York, it's the first all-new version of the Explorer in eight years.

The 2020 Explorer has been redesigned with special features, new technology and creature comforts SUV owners have come to expect. That includes Ford Co-Pilot360 which provides driver assistance to avoid collisions. In addition, Ford increased the towing capacity by 66 percent while making the Explorer lighter and more fuel efficient.

Starting at $33,000, the new model goes on sale this summer, Ford said.

“The new Explorer is very important for Ford,” said Jeff Schuster, analyst at automotive consulting firm LMC Automotive. “Even though the Explorer is the top-selling midsize SUV, there's a lot more competition and new models coming in the next couple of years.”

While there were 21 midsize SUV's available in the U.S. last year, LMC Automotive expects that number to climb to 26 next year and to 30 models by 2022.

That competition will be looking to cut into the Explorer's No. 1 position in the midsize SUV market. Last year, Ford sold more than 261,000 Explorers. An impressive number considering the model has not had a major makeover in years.

“The Explorer is really in the sweet spot of the market,” said Schuster. “Last year, midsize SUVs made up almost 14 percent of the market and we think the segment will keep growing.”

Whether or not the Explorer remains the leader of the SUV market remains to be seen, but the new model should position Ford to continue doing well in that segment. That's critical since Ford will be relying on its trucks and SUVs to generate profits while it restructures its business, investing billions in future technology like autonomous drive vehicles.

Questions? Comments? BehindTheWheel@cnbc.com.

Mercedes’ new CLA coupe loaded with high-tech extras in clear pitch to millennial luxury buyers

Source: Mercedes-Benz
2020 Mercedes-Benz CLA 250 Coupe

In a clear pitch to millennials, Mercedes has loaded its second-generation CLA coupe unveiled at the Consumer Electronics Show in Las Vegas this week with new digital technology, including the its first semiautonomous driving system.

With a starting price tag at under $30,000, the CLA's launch in 2013 brought in a wave of young, first-time luxury buyers Mercedes hopes will move up to more expensive models in the years to come. A visually striking coupe-like sedan, the CLA quickly became the fastest-growing model in the Daimler subsidiary's history.

The 2020 CLA is slightly bigger than the original coupe and will have the ability to operate hands-free under specific conditions, primarily on divided highways. It even can make a pass automatically; the driver simply tapping on the turn signal when operating in semiautonomous mode.

“The new edition of the CLA has been developed further in an intelligent way and is even more emotional and sportier than its predecessor,” said Britta Seeger, global head of Mercedes-Benz cars marketing and sales.

The coupe-like sedan also becomes just the second Mercedes model to offer the automaker's new voice-control system, MBUX, short for the Mercedes-Benz User Experience. Unveiled at the 2018 CES, it works much like the Amazon Alexa voice assistant — which can also be accessed from inside the cabin. Speak the system's wake words, “Hey, Mercedes,” and it comes to life. It can be used to set a destination, play music and do a variety of other functions that go well beyond the more basic voice-control technology found in most of today's new cars.

The system was first rolled out last year on the new A-class sedan. It is being updated this year, Mercedes announced at CES this week, for the 2020 CLA. Among other things, it now can answer more complex questions, and it can recognize who, in a crowded car, was the one who called for its help.

Visually, the 2020 remake doesn't stray far from the design of the original CLA, though it has a more sporty feel, with “power bulges” on the hood and the cabin moved slightly rearward. The interior has been upgraded, as well, to be more in line with what customers would expect of a vehicle badged with the familiar Mercedes tri-star. The original model was faulted for its comparatively Spartan interior.

Buyers will have a wide range of options, including many of the high-tech features, such as LED headlamps. Mercedes is still aiming to bring in first-time luxury buyers with a relatively low base price. The original 2013 CLA began at just under $30,000. The outgoing version now starts at $33,100. The automaker won't release pricing on the 2020 model until closer to its on-sale date late this year.

Source: Mercedes-Benz
2020 Mercedes-Benz CLA 250 Coupe

Two versions of the new CLA were announced in Las Vegas, the front-wheel-drive CLA 250 and all-wheel-drive CLA 250 4Matic. They will share the same turbocharged 2.0-liter inline-four making 221 horsepower and 258 pound-feet of torque. The engine is paired with a seven-speed dual-clutch transmission. As with the outgoing model, a more powerful version developed by the Mercedes-AMG subsidiary, will follow.

The CLA shares the same underlying platform as several other new Mercedes products, a list that includes the 2019 A-class, a more boxy sedan that was introduced to the U.S. market for the first time last year. An updated version of the brand's crossover utility vehicle, the GLA, is expected to debut in the near future. With the ongoing shift from passenger cars to light trucks, the GLA has been gaining momentum at the expense of the sedans.

But Mercedes is trying to cover as many bases as it can in the small-car segment, eventually planning to have seven different models available globally.

It's by no means the only luxury automaker stretching down to attract youthful buyers on a budget. BMW, for one, has added 1- and 2-series models, as well as X1 and X2 crossovers, beneath what had once been its entry model, the 3-series.

For its part, Mercedes is hoping that, by luring in new entry-level buyers, it can give more momentum to its North American and global sales. Worldwide, the automaker scored just a 0.9 percent increase in demand last year, to 2.31 million vehicles, with most of that modest gain driven by the Chinese market. As a result, it slipped into second place among global luxury brands for the second consecutive year behind BMW.

Disclosure:
Paul Eisenstein
is a freelancer for CNBC. His travel and accommodations for this article were paid by an automaker.