on 2040-cars

Auto blog

Geely and Renault joint venture will develop internal combustion and hybrid tech

China's Geely Automobile Holdings and French car maker Renault SA on Tuesday said they will invest up to 7 billion euros ($7.71 billion) in a new equally held joint venture to develop gasoline engines and hybrid technology for automobiles. The JV is aimed at manufacturing more efficient internal combustion engines and hybrid systems at a time when the focus of much of the automobile industry has been on the capital-intensive transition to purely electric vehicles. "We are pleased to be embarking on this journey to become a global leader in hybrid technologies, providing low-emission solutions for automakers around the world," said Eric Li, Geely Holding Group chairman. The new company will employ 19,000 people at 17 engine plants and five research and development hubs, Renault said. At launch, it is expected to supply to multiple industrial customers including Volvo, Proton, Nissan, Mitsubishi Motors, and PUNCH Torino. The JV aims to have an annual production capacity of up to five million internal combustion, hybrid and plug-in hybrid engines and transmissions, Renault added. Reuters reported in March that the new venture will see 15 billion euros ($16.53 billion) in annual revenue. Saudi Aramco, which signed a letter of intent with Renault and Geely in March, is evaluating a strategic investment in the new company, Renault said. The Saudi oil producer has been involved in advanced discussions to take a stake of up to 20% in the JV, sources said earlier this year. Big oil firms have worked with automakers to develop sustainable fuels and hydrogen engines in recent years. But a deal here would make Aramco the first major oil producer to invest in the car business. The joint venture is expected to be launched in the second half of 2023. Earnings/Financials Green Mitsubishi Nissan Volvo Renault

Car owners getting more irritated with their repair experiences, study says

The J.D. Power U.S. Customer Service Index Study (CSI) is a barometer of a vehicle owner's happiness with the service experience. While it wasn't all bad in the 2023 study, the overall owner satisfaction score dropped. This year's tally of 846 out of 1,000 is two points down from 2022, the 43-year-old study's first decline in more than 28 years, and one point down from 2021. However, the overall score remains well up from the pre-pandemic scores of 821 in 2018 and 837 in 2020. The study claims the stumbling block is the horde of BEV launches. The flood into the new energy space has created a recall rate among EVs that's more than double the rate for ICE vehicles. Furthermore, dealership service department knowledge of EVs isn't on par with internal combustion engine expertise, leaving EV owners less satisfied with service advisors compared to ICE owners. Chris Sutton, VP of automotive retail at J.D. Power, said, "As training programs for service advisors and technicians evolve, EV service quality and customer experience must address both the vehicle and the unique customer needs. The EV segment has the potential to spur massive convenience improvements in how customers service their vehicles — but weÂ’re not seeing the benefits yet." Matters are slightly worse for all owners, though, with labor and parts shortages contributing to longer wait times for service appointments. The CSI study surveys owners and lessees of one- to three-year-old vehicles to gauge their happiness with service at franchised dealer or aftermarket service facilities for maintenance or repair work. The criteria in order of importance are service quality (32%); service advisor (19%); vehicle pick-up (19%); service facility (15%); and service initiation (15%). Lexus retains the top spot for luxury brands, giving it three wins in four years. The Japanese automaker won in 2020 as well, its run interrupted by Porsche in 2021. Cadillac, Infiniti and Acura complete the luxury top 5.  For mass-market cars, Mitsubishi wins again after a victory in 2021 and falling to fourth last year. It's followed by Mazda, Buick, Subaru and Mini.  Considering the different service needs and service experience of different body styles, the study has broken results out by segment for the first time. Lexus earned a second victory thanks to winning the premium SUV segment, and Mitsubishi earned a second victory by winning the mass-market SUV/minivan category.

Mitsubishi's rally-inspired Triton XRT previews next-gen pickup

The Triton pickup just might be the most interesting thing in Mitsubishi's lineup. The midsize pickup is available in approximately 150 countries, though the U.S. isn't among them. Overseas it's a serious contender against the Toyota Hilux and Ford Ranger, so the next version is very important for the company. As such, Mitsubishi is drumming up excitement for the next-generation pickup with the Triton XRT Concept, unveiled today at the Bangkok Motor Show. The truck features a more blocky, upright grille than the outgoing model, a trend we've seen on full-size pickups in the past few years. The bulked-up XRT features wears flared fenders, a snorkel and mud-terrain tires that likely won't be found on run-of-the-mill Tritons when the model debuts.  It's possible, however, that Mitsubishi plans to offer its own interpretation of an off-road rig similar to Toyota's TRD Pro line of trucks. The Triton XRT concept wears the logo of Ralliart, Mitsubishi's motorsports division that racked up many victories in the WRC and Paris-Dakar Rally. Mitsubishi recently relaunched Ralliart after over a decade of dormancy. Though initially Ralliart appears to be peddling only cosmetic upgrades, the Triton XRT could change that. Ralliart entered and won the Asia Cross Country Rally last year and plans to do so again for 2023. Helming the program was Hiroshi Masuoka, a Mitsubishi factory driver that won the Dakar Rally twice. While the dearly departed Lancer Evolution doesn't appear to be anywhere on the horizon, a truck-based Ralliart program might be just what Mitsubishi needs to rekindle the brand in enthusiasts' hearts. These days 4x4s and overlanders are arguably more popular with customizers than all-wheel-drive sedans, and Mitsubishi is well-poised to capitalize on that with its many off-road motorsports accomplishments. Unfortunately, the Triton has huge hurdles to overcome if it's to make it to U.S. shores. Foreign pickups are still subject to the Chicken Tax, a 25% tariff on trucks that aren't assembled in the U.S. Toyota and Nissan build their trucks in America to bypass the tax, but Mitsubishi doesn't have the manufacturing base to do that. Still, it's something Mitsubishi execs are trying to figure out, as our insatiable appetite for pickups isn't going away anytime soon.