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Why Mazda did so well and Volvo so poorly in Consumer Reports survey

The poor performances of Tesla and all three domestic automakers got the headlines in Consumer Reports magazine's latest reliability survey, but there were other results that caught our interest. Tiny Mazda notched the biggest gain among the 29 brands included in this year's list, leap-frogging nine spots to No. 3. Buick, which was in the top 10 last year, fell 11 spots to No. 19, the biggest decline of any brand. And then there's Volvo, a brand often vaunted for its quality and reliability, dropping six spots to dead last. What gives? For starters, all three brands benefited or suffered in large part due to their relatively small portfolio of vehicles. So when raves or complaints rolled in for even one particular model, as was often the case, it weighed heavily on the entire brand. That's especially true when it involves a relatively high-volume, hot-selling model such as the Buick Enclave (more on that in a moment). Mazda fared as well as it did despite the CX-3 losing Consumer Reports' influential "recommended" status due to problems with its climate system, including leaks from the condenser and refrigerant unit that triggered a service bulletin from the automaker in late 2016. Deputy auto editor Jon Linkov said that scratch didn't hurt the overall brand, since the CX-9 crossover and MX-5 Miata both jumped up to replace it on CR's list of newly recommended vehicles, thanks to several back fixes Mazda made to both models. For Buick, the redesigned Enclave SUV earned a "Much Worse Than Average" rating after owners reported problems with the new nine-speed automatic transmission it shares with the Chevrolet Traverse as well as some issues with the climate system. There were issues with rough shifting, plus complaints about the torque converter that necessitated fixes to the computer or outright replacement. "Again, similar stuff that we saw with the Traverse: both first-year vehicles, similar powertrains," LInkov said. He said all-new vehicles or redesigns typically fare poorly in CR's reliability survey due to issues that are hard to suss out before vehicles go into everyday use by consumers. The top-selling Encore and Envision fared well, Linkov said, but were outdone by the Enclave's problematic transmission components. The Enclave was Buick's second best-selling model through September at 35,227 units. Then there is Volvo, about which there is one word to sum up its woes: infotainment.

PSA's purchase of Opel from GM is expected to be finalized soon

PSA's purchase of the Opel/Vauxhall division from General Motors is expected to be officially announced on Monday, according to The New York Times. PSA, the parent company of European automakers Peugeot and Citroen, will reportedly hold a joint press conference with GM in Paris to announce the deal. GM has worked as part of an alliance with PSA in Europe since 2012. The deal could be a big boon for both companies. For PSA, the addition of Opel and Vauxhall into its fold would catapult the automaker into second place behind Volkswagen for European marketshare, and would allow the company to spend research and development costs across a greater number of vehicles. And GM, which has struggled in recent years to turn a profit with its European division, would be able to focus more squarely on the areas where it's most profitable and to invest in future technologies like automation. But the deal isn't without its potential pitfalls, primarily for PSA. GM hasn't been able to make a success of Opel and Vauxhall, and it's not a sure bet that PSA will, either. What's more, the addition of Opel and Vauxhall doesn't expand PSA's reach any further into new markets, like China or India. The NYT cites data from Ferdinand Dudenhoffer, a professor at the University of Duisburg-Essen in Germany, showing that 70 percent of PSA and Opel business is done in Europe, a market that has been shrinking since 1999. We'll have to wait a few days to see exactly how the deal between PSA and GM will be structured. We're also curious to see how the loss of Opel may affect GM's lineup in the States, especially for Buick, since the company's Regal sedan is based on the European Opel Insignia. In other words, stay tuned. Related Video:

GM seeks to exempt Buick Envision from U.S. auto tariffs

General Motors is seeking an exemption to a 25 percent U.S. tariff on its Chinese-made Buick Envision sport utility, the automaker said on Thursday, in a move to prevent the key model in the brand's U.S. lineup from becoming a victim of the U.S.-China trade war. The midsize SUV, priced starting at about $35,000, has become a target for critics of Chinese-made goods, including leaders of the United Auto Workers union and members in key political swing states such as Michigan and Ohio. The Envision, assembled only in China, last year accounted for about 19 percent of Buick brand sales in the United States. GM said in a statement that it filed the request on July 30 with the U.S. Trade Representative. An official notice was posted on Thursday on the regulations.gov website, which is tracking requests for exclusions from the so-called Section 301 tariff on certain imported goods from China. GM, the largest U.S. automaker, argued in its request that Envision sales in China and the United States would generate funds "to invest in our U.S. manufacturing facilities and to develop the next generation of automotive technology in the United States." GM said the "vast majority" of Envisions, about 200,000 a year, are sold in China. About 41,000 were sold last year in the United States. Because of the lower U.S. sales volume, "assembly in our home market is not an option" for the Envision, which competes with such midsize crossover vehicles as the Jeep Grand Cherokee and the Cadillac XT5. GM has taken other steps to soften the blow of tariffs, which hit just as the automaker had lowered the price of the Envision to make it more competitive. Ahead of the July 6 start for higher import tariffs, GM shipped in a six-month supply of Envisions at the much lower 2.5 percent tariff rate. Envision sales from April through June plunged to just 7,000 vehicles, while inventories climbed to more than 13,000 vehicles at the end of June. At the current sales rate, the Envision supply should be enough to keep many dealers stocked through the end of the year. GM had lowered prices by as much as $2,500 on the 2019 models, which it started shipping in late April. That means Buick's 2,000 U.S. dealers should have lower-priced Envisions to sell well into the fall. "The previous price point was too high" on the 2018 Envision, said Casey Clark, sales manager at Serra Buick GMC Cadillac in Washington, Michigan, in an interview.