Ranger redux: Ford hopes to claw its way back into exploding midsize truck market

Meghan Reeder | CNBC
2019 Ford Ranger pickup

The windshield wipers slap furiously as the pickup splashes its way through the deep mud bog, the last in a series of obstacles along an off-road trail rough enough to shake loose a few fillings.

It's not the sort of route most drivers will experience in a lifetime, but pickup owners expect their trucks to be ready to handle that sort of situation on a regular basis.

So, when Ford decided to give some automotive journalists a chance to drive the all-new Ranger pickup this month, it took them up into the mountains east of San Diego where they could put the truck through what can best be described as a torture test.

Ford's full-size F-Series pickups make up the best-selling product line in the U.S. automotive market, but the automaker has been notably absent from the midsize truck segment since killing off the old version of its Ranger back in 2012, shuttering the archaic Twin Cities Assembly Plant in Minnesota. It's a decision the automaker soon came to regret.

Rule the road

Through the 1980s, small trucks ruled the road. For then-young baby boomers, they were a cheap way to get a new set of wheels. But over the last two decades, the market has shifted to full-size models like the Ford F-150 and rival Chevrolet Silverado. With demand for midsize products spiraling downward, Ford and its Detroit rivals all pulled the plug, leaving just two imports, the Toyota Tacoma and Nissan Frontier, to fight it out for the remaining scraps. Ford, in particular, was betting it could get old Ranger buyers to cough up a bit more cash for the bigger — and markedly more profitable — F-150.

But things didn't work out quite as planned. For one thing, Ford didn't count on General Motors to get back in the game, in 2015 reviving its Chevrolet Colorado and GMC Canyon pickups. What seemed like a risky bet quickly began to pay off. Not only did sales of the sibling trucks take off, but they gave momentum to the midsize market as a whole, sales of the Tacoma and Frontier also improving. Two years later, Honda returned to the segment with a complete remake of its Ridgeline model.

Ford
The interior of the 2019 Ford Ranger

The irony is that Ford actually had a new midsize pickup, an all-new Ranger that it was producing in plants all over the world and selling just about everywhere but the U.S. The automaker was so sure there wouldn't be a market, it didn't even bother to engineer it to meet U.S. regulations — a process known as homologation — or make it robust enough for the unique demands of American buyers.

By 2016, it was obvious to Ford planners and senior executives that they were missing a huge opportunity, made all the more obvious by the explosive growth in light trucks, in general. Pickups, vans and utility vehicles now account for about 2 out of every 3 new vehicles sold in the States.

$100 million

Ford engineers had a good place to start with the new Ranger, but they couldn't just bring over the global model. It needed some major revisions to boost its cargo and towing capacity, as well as to let it handle serious off-road driving conditions.

The automaker won't discuss what the project cost but analysts like Joe Phillippi of AutoTrends Consulting estimate it ran well over $100 million — not including the price tag for tooling up a factory in the Detroit suburbs to build the U.S. Ranger. That was likely millions more than what it might have cost had Ford designed in the needs of the U.S. marketplace in the first place.

“We can't go back and change the past,” Joe Hinrichs, Ford's president of the Americas, said at an event marking the start of Ranger production at the Wayne, Michigan, truck plant six weeks ago. Looking forward, Hinrichs said, the midsize market should grow fast enough to make room for Ford's return.

Ford
2019 Ford Ranger

Since GM launched the revived Colorado and Canyon models, the midsize pickup segment has grown sharply, even as the overall U.S. market has struggled. In 2017, sales rose to 452,336, up from 448,398 the previous year. And with more new product, the forecast is for even faster growth. At the Wayne plant ceremony, Hinrichs told reporters that he expects the market will quickly reach 500,000, with “plenty of room for everybody.”

Crowded market

Not everyone is convinced Ford will have an easy go of it, however. Phillippi pointed out that “the market is going to get crowded.” At this month's Los Angeles Auto Show, Fiat Chrysler officially got back in the game by revealing the long-awaited Jeep Gladiator. It marks the first time that brand has had a pickup in nearly two decades.

The good news for Ford is that initial reviews of the Ranger have been solid. Autoblog declared that “it stands on its own and above the rest.” CNBC's own test found the Ranger to be solid and capable, with the ability to haul as much as 1,800 pounds of cargo and tow a 7,500-pound trailer.

Mike Blake | Reuters
The 2020 Jeep Gladiator is introduced during a Jeep press conference at the Los Angeles Auto Show in Los Angeles, California, November 28, 2018.

While that's well short of what some full-size models like the F-150 or the Chevy Silverado can handle, experts say that is more than enough for the typical truck buyer. Indeed, midsize models are nearly as large as — and boast nearly the same capabilities as — the full-size trucks of the 1980s thanks to the way the auto industry regularly upsizes its products with each new generation.

“These (midsize) trucks will do virtually everything a suburban cowboy needs,” said Phillippi. Add the ability to do some things that those full-size trucks can't, like park in the typical suburban garage.

MSRP gap

Then there's the matter of price. The aging Nissan Frontier starts at just $18,990, barely half the cost of the typical new vehicle sold in the U.S. this year. The 2019 Ford Ranger will carry a base MSRP of $24,300. While a stripped-down F-Series starts just over $28,000, the gap between midsize and full-size models, as buyers typically equip them, pushes quickly above $10,000.

Source: Nissan
The 2016 Nissan Frontier S King Cab Pickup.

Prospects for the midsize market seem solid enough that there could be still more entries. The five-year plan outlined last June by the late Sergio Marchionne, Fiat Chrysler's former CEO, called for the Dodge division to return to the segment after abandoning its own midsize truck, the Dakota, earlier in the decade.

Volkswagen might even get in the game. The German maker has its own pickup, the Amarok, which it sells primarily in Latin American and Europe. Last June, VW signed a memorandum of understanding with Ford that initially focused on joint efforts in the commercial vehicle segment. But company insiders confirm that the two potential partners are now looking at a variety of opportunities. That could even include a VW version of the Ranger, according to some sources.

Indian pickups

Then there's Mahindra & Mahindra. A decade ago, the Indian automaker attempted to launch a U.S. dealer network to market an SUV and a pickup. That effort collapsed during the Great Recession. But Mahindra recently launched production of a small off-road vehicle, the Roxor, at a plant in Auburn Hills, Michigan. And more could come, Group Chairman Anand Mahindra told reporters at the opening of the factory a year ago.

“I think a very logical step after that would be to get on-road,” he hinted. While a street-legal Roxor appears to be in the works, a version of one of Mahindra's Indian pickups could also follow.

Hyundai, meanwhile, is working on a slightly smaller truck based on the Santa Cruz concept that won rave reviews when introduced at the North American International Auto Show a few years back. A production version could be ready sometime in 2020 or 2021, according to the Korean carmaker.

Much as with SUVs, automakers are wondering whether there might be a market for still smaller pickups, more akin to the compact models that won the hearts of then-young boomers. Ford has dropped hints it may have something to slot in below the Ranger. How the midsize segment fares over the next several years could determine whether pickup buyers will get even more options.

CORRECTION: The article was updated to reflect that the Ranger will be reintroduced in 2019.

Paul Eisenstein
is a freelancer for CNBC. His travel and accommodations for this article were paid by Ford.

Tesla Model 3 Configurator Opens In Denmark — Most Expensive Starting Price Of Any Market Yet

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Published on December 23rd, 2018 |

by Jesper Berggreen

Tesla Model 3 Configurator Opens In Denmark — Most Expensive Starting Price Of Any Market Yet

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December 23rd, 2018 by Jesper Berggreen

Receiving an email from Tesla on the 21st of December 2018 was the most exhilarating experience since I put down 10,000 DKK ($1,500) for a place in the queue on the 1st of April 2016, but the kick I got turned out to be a kick in the face. The starting price for a Tesla Model 3 in Denmark is — as far as I can tell — the highest in any market yet, and thus a whole lot more than I had hoped for.

Before I show you the numbers, I must admit that I fully understand Tesla’s strategy, because the European market is going to be huge for Tesla with the Model 3 entering the scene. This car is going blow the market to pieces. Right now the Renault Zoe, Nissan Leaf, VW e-Golf, and BMW i3 are quietly struggling to be on top, but that all ends with the Model 3. So, Tesla has to start as slow as it can in order to keep up later.

I went to look at the Model 3 first hand at the Tesla dealer here in Aarhus. It was a beautiful red multi-coat Long Range AWD version (I fit perfectly in the driver’s seat I might add). I asked the sales attendant how things were going with the orders just a few hours after the initial batch of emails were out. He could not give me any specifics, but he said his personal opinion was positive.

Clever dude. No specific information, but I could tell from his radiant smiling face that lots of Danes where clicking the order button!

Anyway, there I was, having realized that my wait was not over, by any stretch of my imagination. Here’s why:

Denmark Tesla Model 3 Long Range AWD price without enhanced autopilot

That’s $70,785 for the black Dual Motor Long Range Model 3, which is the cheapest possible Tesla Model 3 without Enhanced Autopilot and before savings in Denmark right now. That’s for delivery in February/March. The price includes 25% VAT and — just to rub salt in the wound — $500 in registration tax.

This is more than a black Model 3 Performance with Enhanced Autopilot in the USA, which comes in at $70,000:

USA Tesla Model 3 Performance price with enhanced autopilot

Now, I do not mean to be whining about this too much, because I honestly have trouble finding enough cash for any EV right now, and I do understand the reason for Tesla to only offer the two top models in Europe at first. The demand is so strong for this car on the Old Continent that if Tesla had started with the Mid Range RWD, it would probably not have been able to keep up. This way, the fortunate folks with cash on hand can say, “Heck, let’s go with the AWD version, even though we don’t really need it,” and thus Tesla evens out the logistics. If I could, I certainly would. If Tesla had made an exception for Denmark and reserved a batch of Mid Range RWD for us, everyone else would have been pissed off.

By comparison, the same black Dual Motor Long Range Model 3 goes for €55,400 ($63,064) in Germany, which has lower VAT (20%) and I believe a €4,000 ($4,553) incentive.

All this just proves two things: Denmark is not a frontrunner in adoption of EVs, but also that all good things come to those who wait, and wait, and wait…

I found a used 2014 Model S 85 online for DKK 350,000 ($54,000). Hmm, maybe…

No, I’ll just wait…

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About the Author

Jesper Berggreen Jesper had his perspective on the world expanded vastly after having attended primary school in rural Africa in the early 1980s. And while educated a computer programmer and laboratory technician, working with computers and lab-robots at the institute of forensic medicine in Aarhus, Denmark, he never forgets what life is like having nothing. Thus it became obvious for him that technological advancement is necessary for the prosperity of all humankind, sharing this one vessel we call planet earth. However, technology has to be smart, clean, sustainable, widely accessible, and democratic in order to change the world for the better. Writing about clean energy, electric transportation, energy poverty, and related issues, he gets the message through to anyone who wants to know better. Jesper is founder of Lifelike.dk.

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These are the most disappointing cars we drove in 2018

These are the most disappointing cars we drove in 2018

Mack Hogan | CNBC

Mack Hogan | @macklinhogan

1 Hour Ago

With such steep competition, it's rare that automakers have truly haphazard entries in any segment. Still, some cars totally miss the mark on value.
Sure, the worst cars on sale today are still more livable and safe than cars from 20 years ago, but prices keep creeping higher. So for me, the biggest disappointments are all cars that have price tags divorced from the reality of the market.
With interest rates rising and shoppers looking for better deals, there are a few cars this year that we think most people should skip entirely.
Here they are, in alphabetical order.

Ford EcoSport

Price as tested: $28,235
Ford needed an entry in the subcompact crossover space, so it's easy to see why they brought over a years-old design from abroad. And to its credit, the EcoSport is decent inside and fun to toss around. Had it come in at a reasonable price, it could be a hit. But, with Ford axing most of its cars, the EcoSport is simply too expensive to be the starting point of the Ford lineup.

Adam Jeffery | CNBC

GMC Terrain

Price as tested: $40,550
At $40,550, our GMC Terrain tester was far more expensive than range-topping versions of its competitors. Yet, the fully-kitted Terrain costs as much as $10,000 more than competitors, offering few advantages besides an available rear-seat-entertainment system. There's nothing else to justify a 30 percent premium over compelling options from Honda, Mazda and Nissan. Buy something else and tape a pair of iPads to the headrests, because there's no way I would recommend the Terrain.

Mack Hogan | CNBC

Infiniti QX60

Price as tested: $65,930
My full review of the QX60 hasn't published yet, but it's safe to say I wasn't impressed. Some quilted leather and a good coat of paint can't hide the fact that the QX60 has pedestrian roots and an infotainment system out of 2012. The word “bumbling” was created to describe the QX60, with the mega monster feeling more unwieldy and less refined than some mainstream crossovers. It'd be a midpack finisher in the mainstream three-row crossover world, but against other $65,000 family haulers it makes no sense.

Infiniti

Toyota Yaris

Price as tested: $19,335
Let's be clear about three things. One, I love a cheap and cheerful car. Two, Toyota makes some good cheap cars. Three, the Yaris is not one of them. Sure, $19,335 doesn't sound like a lot of money, but the value proposition is nonexistent. The Yaris has a bad interior that doesn't make even a passing attempt to disguise its cheapness, while the powertrain is loud and clattery. In all forms, it feels like a car from a decade ago.
The most damning part of it all is the competition. Not from other automakers, but from Toyota itself. Between the Yaris iA (a completely different car despite the similar name), the Corolla iM and the Corolla, Toyota offers three better cars that start at under $19,335.
Instead of the cars on this list, consider buying one of the best I tested in 2018.

Mack Hogan | CNBC

more from Tech

Japan prosecutors file new allegation against Nissan’s Ghosn

Japan prosecutors file new allegation against Nissan’s GhosnTokyo – Japanese prosecutors added a new allegation of breach of trust against Nissan’s former chairman Carlos Ghosn on Friday, dashing his hopes for posting bail.
Ghosn, along with another executive Greg Kelly, was arrested Nov. 19 and charged with underreporting his income by nearly 10 billion yen ($80 million).
The fresh allegations were filed a day after a court rejected prosecutors’ request for a longer detention of Ghosn and Kelly. Their lawyers were hoping they could get them released on bail as early as Friday.
So far, the new allegation only applies to Ghosn and Kelly could still be bailed out.
Kyodo News service and other Japanese media reported that prosecutors alleged that Ghosn caused Nissan a loss of 1.8 billion yen ($16 million) in 2008. Prosecutors alleged that Ghosn put his personal investment loss during the Lehman crisis on to Nissan, according to Japanese reports.
Ghosn and Kelly are also facing allegations that they underreported Ghosn’s pay by about 5 billion yen ($44 million) in 2011-2015, and another 4 billion yen ($36 million) for 2016-2018, for which their first 10-day detention was to expire Thursday.
The maximum penalty for violating the financial law is up to 10 years in prison, a 10 million yen ($89,000) fine, or both. The conviction rate in Japan is more than 99 percent for any crime.
The arrest of an industry icon has triggered international attention. Prosecutors have been criticized for separating the same allegation into two periods as a tactic to detain Ghosn and Kelly longer. They say Ghosn and Kelly are flight risks. No trial date has been set.
The scandal also raised concerns over the Japanese automaker and the future of its alliance with Renault SA of France.
Ghosn’s downfall is seen by some as a maneuver by others at Nissan to gain power in the alliance.
Kelly’s wife, Donna Kelly, said in a video message carried by TV Asahi and other networks that her husband was “wrongly accused as part of a power grab” at Nissan. “Greg and Mr. Ghosn fully believe that they did not break the law,” she said.
Renault in 1999 sent Ghosn to turn around Nissan, then on the verge of bankruptcy, and he led its rise to the world’s second-largest automaker.
Nissan has dismissed Ghosn as chairman and Kelly as a representative director since the allegations were made. Nissan has put off a decision on Ghosn’s replacement.
Read or Share this story: https://www.detroitnews.com/story/business/autos/foreign/2018/12/20/japan-court-denies-extended-detention-nissan-carlos-ghosn/38772775/

New allegation filed against Nissan’s Ghosn

New allegation filed against Nissan’s GhosnTokyo – Japanese prosecutors added a new allegation of breach of trust against Nissan’s former chairman Carlos Ghosn on Friday, dashing his hopes for posting bail quickly.
Ghosn and another former Nissan executive, Greg Kelly, were arrested Nov. 19 and charged with underreporting Ghosn’s income by about 5 billion yen ($44 million) in 2011-2015. They also face the prospect of more charges of underreporting Ghosn’s income for other years by nearly 10 billion ($80 million) in total.
The breach of trust allegations were filed a day after a court rejected prosecutors’ request for a longer detention of both men. The new allegation only applies to Ghosn, and Kelly could still be bailed out. A request for bail by Kelly’s lawyer is pending court approval, according to the Tokyo District Court, but his release will have to wait until next week since the request was still in process after office hours Friday.
Prosecutors in a statement Friday alleged that Ghosn in 2008 transferred a private investment loss worth more than 1.8 billion yen ($16 million) to Nissan by manipulating an unspecified “swap” contract. Ghosn also profited by having the company transfer a total of $14.7 million to another company to benefit himself and that company’s owner, who helped in the contract manipulation, prosecutors said. Japan’s NHK public television said the company owner is a Saudi Arabian acquaintance of Ghosn.
Shin Kukimoto, deputy chief prosecutor at the Tokyo District Prosecutors Office, refuse to say if the two transactions were related or how Ghosn illegally profited. He also declined to identify the collaborator or whether the transactions were made overseas.
Ghosn and Kelly are only charged with underreporting Ghosn’s pay over five years, in violation of the Financial Instruments and Exchange Act. They have not been formally charged with an additional allegation of underreporting another 4 billion yen ($36 million) for 2016-2018, for which their first 10-day detention was to expire Thursday.
Prosecutors have been criticized for separating the allegations as a tactic to detain Ghosn and Kelly longer. They say Ghosn and Kelly are flight risks.
The Tokyo District Court, in an extremely rare statement Friday, cited overlapping points of contention and evidence between the two allegations as the reason for Thursday’s decision, NHK said. “There was no compelling reason to justify further extension of their detention.”
The maximum penalty for violating the financial act is up to 10 years in prison, a 10 million yen ($89,000) fine, or both. Breach of trust also carries a similar maximum penalty. The conviction rate in Japan is more than 99 percent for any crime.
Ghosn, 64, was sent by Renault in 1999 to turn around Nissan, then on the verge of bankruptcy, and he led its rise to become the world’s second-largest automaker. The arrest of an industry icon has triggered international attention and the scandal has raised concerns over the financial health of the Japanese automaker and the future of its alliance with Renault SA of France.
Nissan has said its own investigation found serious misconduct including underreporting of Ghosn’s income and misuse of company assets. His downfall is seen by some as a maneuver by others at Nissan to gain power in the alliance.
Ghosn was quoted by his lawyer as saying that he is determined to prove his innocence in court and restore his honor, NHK reported Friday. Ghosn also hopes to hold a news conference when he is released.
Kelly’s wife, Donna Kelly, said in a video message carried by TV Asahi and other networks that her husband was “wrongly accused as part of a power grab” at Nissan. “Greg and Mr. Ghosn fully believe that they did not break the law,” she said.
Nissan dismissed Ghosn as chairman and Kelly as a representative director. It has put off a decision on Ghosn’s replacement.
Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Read or Share this story: https://www.detroitnews.com/story/business/autos/foreign/2018/12/21/japan-nissan-new-allegation-filed-carlos-ghosn/38778785/

Rivian R1T all-electric pickup revealed – WJAC Johnstown

With the Rivian R1T pickup revealed this morning, just ahead of the Los Angeles auto show, and the R1S SUV expected to be shown here this week, a Michigan-based electric-vehicle startup called Rivian might have something that’s been a long time coming: the first widely available fully electric light-duty pickup. Along with that, it might… Continue reading Rivian R1T all-electric pickup revealed – WJAC Johnstown

China says it will suspend additional tariffs on US autos

China to suspend tariffs on US automobiles and auto parts
6:46 AM ET Fri, 14 Dec 2018 | 03:49

China has said it will temporarily halt its additional 25 percent tariff on vehicles made in the United States.

The relief will last for three months staring from January 1, as part of an agreed truce between Beijing and Washington.

The Chinese finance ministry said on its website that China will suspend 25 percent tariffs on 144 vehicles and auto parts originating from the U.S. and 5 percent tariffs on an additional 67 auto items.

U.S. President Donald Trump and President Xi Jinping agreed to lessen the impact of trade tariffs for the first 90 days of 2019, following a dinner in Argentina on December 1.

The U.S. has slapped a 25 percent tariff on finished vehicles built in China and 10 percent on most auto parts. China's 40 percent tariff on U.S. car imports will now reduce to 15 percent for 90 days.

That brings the auto tariffs in China back down to the same level as before the point that the two countries began imposing tit-for-tat levies.

Tariffs help the big three?

Ina note released Thursday, auto analysts at the Swiss bank UBS said trade risks continue to linger and that under their worst scenario, U.S. sales could slump by as much as 12 percent.

But UBS highlighted Ford, General Motors and Fiat Chrysler as potential winners should tariffs prohibit imports, as all three have capacity to boost domestic production.

Meanwhile, auto sales in China fell 14 percent in November over the same month in 2017, the Chinese Association of Automobile Manufacturers said Tuesday.

That slowdown, while part blamed on the trade war, is also reflective of Chinese domestic demand losing steam.

And Anna-Marie Baisden, head of autos research at Fitch Solutions told CNBC on Friday that getting a tariff deal in place may not spark fresh demand.

“Lowering tariffs might not actually make a big difference because the Chinese market is slowing anyway so even domestic brands are suffering,” she said via email.

European auto stocks hit hard

Auto stocks in Europe were among the leading losers on Friday following a steep drop in the number of new car registrations.

European car sales dropped 8.1 percent in November, falling for the third straight month after the introduction of a new emissions-testing regime in September.

The Stoxx 600 Autos sector dipped 2.2 percent following the data but has since pared losses. At 6:02 a.m. Eastern Time, the index of major European auto and auto-supplier stocks was lower by 1.4 percent.

China Daily | Reuters
Employees assemble vehicles at a plant of SAIC Volkswagen in Urumqi, Xinjiang Uighur Autonomous Region, China September 4, 2018.

For new car registrations, Renault led the declines with sales falling by 16 percent, while Volkswagen and Fiat Chrysler also posted disappointing numbers.

Over the summer, auto dealers had offered incentives to empty stock before new emissions rules came into effect, according to the European Automobile Manufacturers' Association (ACEA).

“Ahead of the introduction of the new WLTP test in September, car registrations jumped by 31.2 percent in August, which has led to a drop in demand in the following months,” the ACEA said in a statement Friday.

The EMEA added that car demand for November had shrunk in all of Europe's five biggest markets.

Aside from the technology hurdle that prompted a summer rush of European car registrations, one analyst at Citi told “Squawk Box Europe” on Friday that said there was also evidence of a slowdown in the consumer's desire to borrow and spend.

“It is about lending conditions. It is not only the nominal rate but what kind of coverage is the bank charging on the loan,” said Luis Costa, head of CEEMEA FX and rates strategy at Citi.

Costa cautioned however that there had been no “massive tightening of lending conditions yet.”

European stocks as a whole have performed poorly Friday morning as the drumbeat of weak data has continued from China. Overnight investors learned that November's retail sales in China grew at their weakest monthly pace since 2003, hurting autos and other stocks with exposure to the country.

How Nissan hopes to market its future electric cars

Follow John

2018 Nissan Leaf
The Nissan Leaf with a roughly 60-kilowatt-hour battery was expected to make its public debut at the LA Auto Show earlier this month. It didn’t.

That car is expected to appear “very soon,” perhaps at the 2019 Consumer Electronics Show to be held in Las Vegas next month.

DON'T MISS: Long-range Nissan Leaf missing from LA Auto Show

But we didn't arrive back entirely empty-handed on new insights about where the Leaf is headed. With that plus a fully electric compact crossover utility vehicle on the horizon—and more electric cars close behind it—we sat down with Dan Mohnke, Nissan’s senior vice president for sales and marketing, to find out what Nissan had learned about how to market plug-in vehicles, and how that might evolve once new products arrive.

We spoke with Chevrolet more than two years ago on the same topic. That brand’s answer at the time was that it would continue to look for Bolt EV and Volt buyers who were similar to those who had already bought its cars—hardly a recipe for growing volumes.

READ THIS: How GM plans to market Chevy Bolt EV electric car

Nissan’s Mohnke said the company had taken away several lessons from its seven-plus years of selling the Leaf in North America.

Range anxiety is real. A 74-mile range may suit Japanese or European drivers who travel shorter distances and have access to a comprehensive, reliable, safe, affordable network of mass transit options. It is not enough for U.S. drivers in dispersed suburbs, who probably need something like 200 miles or possibly a bit less.

The entire “customer journey” needs to be addressed. Not the routes driven, but the process of marketing to, educating, and partnering with buyers from their first Internet search through visits to the dealership, delivery of the car, education on how it works and how charging is done, and follow-up contacts. Nissan is now focusing heavily on the “customer journey” for all shoppers, but electric cars add several specific requirements that gasoline vehicles don’t, such as education about charging options.

2017 Nissan Leaf showing battery pack (Source: Nissan)

Different buyers want different vehicles. This should be obvious, but over the last seven years, the U.S. market has swung decisively away from passenger cars (sedans, hatchbacks) toward utility vehicles of all sizes. The Leaf, for all its advantages, is visually a compact five-door hatchback, and that segment is a non-starter for many buyers. Bring on the all-electric compact crossover with optional all-wheel drive!

Each market is different, and the pace of adoption varies a lot. California is known to be the nation’s friendliest market for electric cars. Marketing and dealer communications are very different there than in, say, the central states where trucks predominate and dealers may only have a single Leaf in stock—if that.

All that said, Mohnke expects the company to start to market the advantages of electric cars as cars more confidently than it has in the past.

ALSO SEE: Documents: 60-kwh Nissan Leaf pricing aligned with Chevy Bolt EV

Those include “taking the stress out of driving” through both electric cars’ quieter, smoother travel and power delivery and the company’s suite of active-safety systems that it calls “intelligent driving.”

Another is the pure “exhilaration” of driving an electric car. When pressed as to what exactly that meant, Mohnke noted drivers definitely see an electric car’s strong, smooth maximum torque from a standstill—and at legal speeds—as a benefit they enjoy. Which is to say, power. That can be stressed in ads, he suggested.

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Ghosn’s detention puts Japan justice system under microscope

Ghosn’s detention puts Japan justice system under microscopeTokyo – Since his arrest on suspicion of falsifying financial reports, Nissan’s former Chairman Carlos Ghosn has been sitting in a humble cell for more than a month, interrogated day in and day out, without a lawyer present.
His case is drawing attention to the criminal justice system in Japan, where there is no presumption of innocence and the accused can be held for months before trial. The system, sometimes called “hostage justice,” has come under fire from human rights advocates.
When a court denied Tokyo prosecutors’ request to detain Ghosn another 10 days on Dec. 20, it was so unusual that the Japanese media reported he might be released. But such speculation was dashed when prosecutors rearrested him a day later on suspicion of breach of trust, tagging on a new set of allegations centered on Ghosn’s shifting personal investment losses of some 1.8 billion yen ($16 million) to Nissan Motor Co. On Sunday, a court approved prosecutors’ request to detain him through Jan. 1.
But his plight is routine in Japan. People have signed confessions, even to killings they never committed, just to get out of the ordeal.
A trial could be months away and could drag on even longer. And his chances aren’t good: The conviction rate in Japan is 99 percent.
Those close to Ghosn and his family say he is asserting his innocence. But it is unclear when release may come for Ghosn, who led a two-decade turnaround at Nissan from near-bankruptcy. Tokyo prosecutors consider Ghosn, a Brazilian-born Frenchman of Lebanese ancestry, a flight risk.
Other nations may have legal systems that are criticized as brutal and unfair. The U.S., for instance, has its share of erroneous convictions, police brutality and dubious plea bargains. But, in the U.S., a person is presumed innocent, has the right to have an attorney present and gets freed within 72 hours if there is no charge.
Carl Tobias, a professor at the University of Richmond’s School of Law, said such a longtime detention is highly unusual in the U.S.
“Each time the government reaches a deadline where Ghosn might be released, the government files new allegations and rearrests,” he said.
Deputy Chief Prosecutor Shin Kukimoto said prosecutors are merely doing their job of “trying to carry out a proper investigation.”
When asked by a reporter about “hostage justice,” he replied: “We are not in a position to comment on how the law has been designed.”
Under such a system, those who insist on innocence end up getting detained longer. Once the rearrest processes run out and a suspect is formally charged, bail is technically possible but often denied until the trial starts because of fears about tampered evidence.
“It is good that the world will learn how wrong Japan’s criminal system is through the case of this famous person. It is something even many Japanese don’t know,” says Seiho Cho, a lawyer in Tokyo and an expert on criminal defense. “Countless people have gone through horrible experiences.”
A famous case is Iwao Hakamada, a professional boxer, who served 48 years in prison, mostly on death row after he signed a confession under questioning and was convicted of killing a family of four. He was freed in 2014 after DNA tests determined blood at the crime scene wasn’t Hakamada’s, and a court ruled police had likely planted evidence. Boxing champions had rallied on his behalf.
A true-life story of a man who refused to sign a confession that he groped a woman on a crowded commuter train became a popular 2007 movie “I Just Didn’t Do It,” directed by Masayuki Suo. The film depicts a five-year legal battle for exoneration, highlighting the burden of proof of innocence was on the accused.
In the U.S., defense lawyers tend to be vocal, but in Japan, it is fairly standard – as in the case of Ghosn – for them to stay silent, especially before trial, because that’s considered better for the suspects. Lawyers are allowed to visit clients in detention.
Ghosn has been formally charged in the initial set of allegations, underreporting his income by about 5 billion yen ($44 million) for five years through 2015. The maximum penalty for violating Japan’s financial laws is 10 years in prison, a 10 million yen ($89,000) fine, or both.
Greg Kelly, an American Nissan executive who was arrested with Ghosn, has been similarly charged with collaborating on underreporting Ghosn’s income. Kelly was not rearrested on the latest breach of trust allegations. Kelly’s U.S. lawyer says he is innocent and abided by company policy.
Nissan has also been charged as a legal entity, but no person besides Ghosn and Kelly has been charged or arrested. Nissan executives repeatedly say an internal investigation that began in the summer showed clear and serious wrongdoing, which went unnoticed for so long because of complex schemes “masterminded” by Ghosn and Kelly.
They went to the prosecutors, resulting in the surprise Nov. 19 arrests, and are cooperating closely with the investigation.
Being accused of a crime is devastating in a conformist insular society like Japan. Family members also become targets of discrimination, spurned for marriage and ostracized. Some commit suicide.
Cho, the lawyer, said the long detention and trial mean people lose their jobs, reputation, sometimes their families. But he still had this advice: Whatever you do, don’t confess to anything you didn’t do as that just makes it worse.
“Don’t ever compromise on your innocence,” he said.
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