• China’s state TV targets VW is latest expose

    March 19, 2015
    China’s state-owned China Central Television (CCTV) network has hit Volkswagen with its second exposé this week. CCTV’s latest report claims the German automaker pushed leaky engines on Chinese buyers.
    According to CCTV, VW dealers and service centers ignored customer complaints of oil leaks pooling in engine trays. CCTV says it has discovered oil leak complaints filed by owners in Shanghai, Beijing and eight other Chinese provinces. The report specifically mentioned the Magotan sedan and Tiguan SUV.

    Customers that filed complaints were allegedly told that the oil leaks were normal. Third-party experts are concerned that the oil leaks could lead to engine fires.

    “[The report] does pass the sniff test,” James Feldkamp, CEO of Shanghai-based consumer watchdog MingJian, told Reuters.

    He continued: “It looks entirely plausible that the engine problems they’re having with the leak are more widespread than originally reported.”

    The VW Group recent recalled nearly 100,000 2014 and 2015 model year vehicles over a fuel leak issue. About 38,000 of those vehicles were located in the United States.

    Earlier this week CCTV aired a report accusing VW, along with Nissan and Mercedes-Benz, of overselling dealer repairs. Back in 2013 the TV station reported on a VW transmission flaw that could cause a vehicle to unexpectedly speed up or slow down. Those allegation ultimately resulted in a recall.

    It remains to be seen in CCTV’s latest report will lead to a recall, but it could prove damaging to VW’s reputation in China. VW is currently the best-selling automaker in the world’s largest auto market, but exposés tend to sway China’s buying public.

    VW has so far declined to respond to CCTV’s claims.

  • Jaguar, Buick top latest J.D. Power service satisfaction study

    March 19, 2015
    Jaguar has vaulted to the top of J.D. Power & Associates’ latest U.S. Customer Service Index Study.
    J.D. Power’s annual CSI study ranks most luxury and mass-market brands based on satisfaction with service at a franchised dealer facility. The study is based on a 1,000 point scale, with a higher score reflecting a higher level of satisfaction. The study is limited to owners and lessees of 1- to 5-year old vehicles.

    After all the numbers were crunched, Jaguar came out on top of the luxury category with an overall score of 877. Last year Jaguar ranked below the industry average with a score of 853.

    Lexus, meanwhile, maintained its second-place position last year with a score of 870. Audi (865), Lincoln (861) and Cadillac (858) rounded out the top five. Somewhat ironically, Land Rover, a sister company to Jaguar, finished dead last in the study’s luxury category with a score of 823.

    For the second consecutive year, General Motors’ Buick brand topped the CSI study for mass market brands with a score of 836. The top five brands in the study actually carried over unchanged from last year, although there was some jostling of positions. When the dust settled, MINI finished in the second spot (834), followed by Volkswagen (818), GMC (811) and Chevrolet (807).

    Although General Motors fared well in the mass market part of the study, cross-town rivals Ford and Fiat Chrysler Automobiles struggled mightily. The Ford brand finished in 15th place with 776 points, trailing the mass market brand average of 792. FCA’s Chrysler, Fiat, Ram, Dodge and Jeep represented the bottom of the barrel with scores of 775, 762, 756, 749 and 740, respectively.

    Interestingly, the study found that recall-related repairs made up about 16 percent of all reported trips to the dealer, representing a high watermark for the study. However, automakers are handling those recall repairs much better than in years past, with satisfaction scores averaging 789 points, up from 777 points in 2014. In fact, satisfactions scores for recall repairs averaged 8 points higher than regular repair visits.

    “Even though recalls can create a large influx of customers into the service department and really strain capacity, automakers are better prepared to handle recalls than they were a few years ago,” said Chris Sutton, vice president, U.S. automotive retail practice at J.D. Power. “Manufacturers have shown that it is possible to turn a potential negative into a positive when it comes to recalls if they’re done in a way that doesn’t inconvenience the customer.”

  • BMW exec: Smaller MINI unlikely

    March 19, 2015
    BMW group executives are downplaying the possibility of a MINI model slotted below the current Cooper Hardtop.
    Rumors of a smaller MINI model to be called the Minor and built as part of a joint effort with Toyota have been circulating since early this year. The Minor, along with the Superleggera concept would help MINI increase volume beyond the core Cooper model line.

    The “Minor” name would trace its roots back to the original Mini that was introduced in 1959. Loosely inspired by the Rocketman concept (pictured) that bowed at the 2011 Geneva Motor Show, the Minor was expected to feature roughly the same silhouette as the two-door Hardtop but a much smaller footprint.

    Peter Schwarzenbauer, BMW board member and MINI’s top exec, confirmed to Automotive News that he sees a future for the Superleggera concept, but when asked about the feasibility of the Minor, said: “I don’t see a smaller car than the current one.”

    If BMW executives do change their minds on the Minor, it would be several years until a production model arrives in showrooms. Given premium manufacturers’ hesitation to sell their city cars in the United States, it’s entirely possible that the resulting product would not be offered on this side of the pond.

  • Ram to attempt record for largest parade of pickups

    March 19, 2015
    Chrysler’s Ram truck brand will attempt to set a new Guinness World Records title for largest parade of pickup trucks at next month’s Academy of Country Music Awards. Ram is the “Official Truck” of the Country Music Awards.
    The record-setting attempt will take place on April 19 at AT&T Stadium in Arlington, Texas. Ram is reserving 500 spots for the “Ram Truck Round-up,” but the company no mention of the standing record for the largest parade of pickup trucks.

    The event will be open to any Ram truck owner. In order to encourage participation, each Ram truck will be eligible for two free tickets to Saturday’s ACM Party for a Cause Festival, which will feature live performance by an “outstanding lineup of top country music artists.”

    There is one caveat — each participating truck will need to plunk down a $50 deposit, but that will be refunded in the form of cash when the owner checks in for the event.

    “Everything is always bigger in Texas and Ram, America’s fastest-growing truck brand, is making sure this year’s ACM Awards celebration in Dallas will prove this once again,” said Robert Hegbloom, President and Chief Executive Officer, Ram Truck Brand. “The ‘Ram Truck Round-up’ is a once-in-a-lifetime opportunity for our loyal truck owners to be a part of a special record-breaking rally and pickup parade in the largest truck market in the country.”

    Those interested in registering can do so at www.ramroundup.com.

  • BMW expects to lose luxury volume lead

    March 19, 2015
    BMW is hinting that domestic rival Audi may supplant it as the number one premium vehicle manufacturer.
    BMW CEO Norbert Reithofer said that BMW “…would like to remain leading premium automaker, also in terms of volume,” but Automotive News Europe reports that Audi’s high-volume, low-margin push will be enough to claim the #1 slot worldwide before the end of the year.

    BMW’s MINI brand competes at the lower end of the market, but the BMW core brand itself has no offerings at that price point. BMW says that it will retain the volume crown if MINI-branded vehicles are counted toward its total.

    “There are always internal discussions about volume, these tend to end with the conclusion that we cannot surrender market share, but only if you have a good margin contribution. Volume is not everything and maintaining the same level of growth is not everything,” Reithofer said.

    Fellow German rival Mercedes-Benz is not far behind Audi. Both could overtake BMW worldwide by 2020.