Too Much Production Capacity, Cadillac XT5 Refresh – Autoline Daily 2641

Too Much Production Capacity, Cadillac XT5 Refresh – Autoline Daily 2641


this is Auto lined daily reporting on the global automotive industries global automotive sales this year will probably be about 92 million vehicles and yet automakers have the manufacturing capacity to make 137 million vehicles according to LMC automotive that means there is 45 million units of excess capacity sitting idle and that’s not good for the industry what’s even crazier is that automakers will build 52 more assembly plants by the end of next year adding another 3.6 million units of capacity most of those new plants and most of that excess capacity is in China and that is going to be a drag on the entire Chinese industry and making matters worse sales in China are slowing down the China Association of automobile manufacturers is forecasting that sales will hit nearly 27 million units which is a drop of five percent compared to 2018 it previously forecasted that sales would remain flat this year it also lowered its outlook for new energy vehicles by 100,000 units to 1.5 million this year and all this will only make that overcapacity look even worse the battle over fuel economy standards is back on the front burner Ford Volkswagen Honda and BMW reached an agreement with the state of California to voluntarily boost their fleet average fuel economy to nearly 50 mpg by 2026 last year the Trump administration proposed to freeze fuel economy rules enacted by the Obama administration at 2021 levels the White House also wants to revoke California’s ability to set its own standards so this move by these four automakers is like slapping president Trump across the cheek with a glove and we can only imagine that the next step is going to be the equivalent of 20 paces and pistols [Applause] [Music] the insurance industry has been saying for a very long time that it wants safer vehicles the Insurance Institute for Highway Safety which is funded by insurance companies won’t give cars a top safety pick+ unless they have advanced safety technology like automatic emergency braking and yet the insurance industry is not willing to give discounts to customers who buy cars with that safety technology one reason they cite high repair costs even though this technology makes cars safer if they get in an accident it will cost more to repair them and according to a report and Reuters car makers don’t like to provide detailed information on models sold with the safety features the standards are inconsistent and drivers use it unpredictably insurance companies say it could take as long as five years before insurance rates reflect the benefit and cost of advanced safety systems the Cadillac XTS ago but it’s already getting a minor refresh and it needs it so far this year sales are down 17 percent while several of its competitors like the BMW x3 and Audi q5 are growing strong so the xt5 is getting a new grille front and rear fascias and standard LED headlamps the base engine is now the 237 horsepower 2-liter turbo and nine speed transmission borrowed from the XT for the 3.6 liter v6 with 310 horsepower is optional and the engines get hydraulic engine mounts the Refresh version should be out in a couple of months UPS is pushing forward with plans to deliver packages with drones by creating a new subsidiary called ups flight forward it’s applied for certification for multiple drones and pilots with the Federal Aviation Administration which could be approved as early as this year UPS currently works with mater net to make healthcare deliveries with drones in North Carolina and it’s also currently in a battle with Amazon and Google’s alphabet’ to launch a drone to live rhe business hey we were sent yet another picture of a car to identify from auto line viewer Richard H but Richard knows exactly what this car is and it’s challenging you to identify it I know some of you know this without any clues what Richard does hint it’s very English and pre-world War two so come on let’s show Richard how smart you really are Auto line daily is brought to you by Bridgestone tires your journey our passion DuPont transforming industries and improving lives through material science and also by hazaki yesterday GM self-driving unit crews announced it’s delaying the launch of its autonomous ride-hailing service so when will we see fully self-driving cars out on the road on Otto Lang this week jeff cly the president of continental North America gazes into his crystal ball and answers that question it’s really already here to a certain extent right and and I would say the OEM level they may not be making much money on it right but but you know I think by 2025 timeframe you’re gonna see a much higher penetration rate of these mm I’ll say highly automated autonomous to me is a bit of a stretch we’re in all driving situations every corner of the world you’re driving without a you know a steering wheel that’s a bit of a stretch for me right now but by 2025 you’re gonna start to see highly automated driving in many more vehicles than you do today and the penetration rates will go up and the consumer confidence by then just by that building block approach to get there will be there and we think it’s really gonna start to take off and you can watch that entire show right now on our website Otto Lang TV or you can find it on our YouTube channel but that brings us to the end of today’s show thanks for watching have a great weekend [Music] you [Music] you ward’s is the industry leader for news data and analysis that’s why companies across the globe subscribe to our premium service maybe even your own login for subscriber access now check your company’s intranet for details and rely on wards Auto comm to keep you informed


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