News Round-up: Volkswagen To Cut 40+ Models, Tesla Asks 'Are You Sure You Want That?', and Even Millennials Don't Want to Share Leases

Mark Stevenson
by Mark Stevenson
news round up volkswagen to cut 40 models tesla asks 8216 are you sure you want

Volkswagen is rumored to cut some 40-plus models from its worldwide fleet as it ushers in a new era of electrification.

That, Tesla wants you to order something now instead of waiting until later, and millennials are just like the rest of us … after the break.

Electric tide pushing out 40 models at Volkswagen

With a significant shift planned for Volkswagen as electrifies its vehicle range, the automaker is expected to phase out some 40 models worldwide, reports Reuters.

According to sources who spoke to German newspaper Handelsblatt, Volkswagen Group will eventually stop producing 40 of its 340 total models sold worldwide.

From Reuters:

A Volkswagen spokesman said, however, the number of models that would be discontinued had not been decided yet. “A decision on how many models will be phased out or ceased has not been taken yet,” he said.

Audi: You can take Ducati from our cold, dead hands

Of those 40 models apprehensively staring at the guillotine in Wolfsburg, Audi’s Italian motorcycle brand is not one of them.

Ducati, which was purchased by VW Group for $1.12 billion and placed under Audi’s command in 2012, is safe in the clutches of the four-ringed brand.

From Motorcycle News:

Professor Rupert Stadler, Chairman of the Board of Management at Audi, who is also a board member of Volkswagen, told MCN: “Ducati is not for sale,” after we asked what was going on with the future of the famous Ducati brand.

I’d say that’s pretty damn clear.

Tesla wants you to give up your Model 3 ticket and buy a Model S right now

After announcing it had sped up its production line, Tesla is now openly courting Model 3 reservation holders to move that $1,000 toward the purchase of a Model S instead.

According to Electrek, Tesla mailed reservation holders explicitly asking for the opportunity to get them into a Tesla even sooner.

From Electrek:

The automaker sent out emails announcing the reintroduction of the Model S 60 to its mailing list, including Model 3 reservation holders, which is to be expected and not in any way special, but several reservation holders are also reporting having received another email, in which Tesla is directly addressing upgrading from a Model 3 reservation to a Model S order:

“We are thrilled to have just launched the new Model S 60 and as a valued model 3 reservation holder I wanted to personally reach out to invite you to University Town Center Showroom to experience Model S 60 and 60D. It is a wonderful opportunity to get into a custom designed Tesla with payments starting at $667/mth before gas and tax incentive savings. Depending on your current vehicle trade-in value the monthly payment could be even lower.

We know how excited you are to receive your Model 3 and wanted to ensure you had the chance to work with myself and our team to explore the options of getting into a Tesla even sooner. Please let me know if I can arrange a test drive experience for you or answer any questions. We would also be happy to review your current trade-in options as well. We are here to help you build your dream car and continue our mission to accelerate the transition to sustainable transport.”

Ford’s shared leasing program is a dud

Ford was incredibly smug when it announced the pilot launch of its shared leasing program aimed at the group everyone believes to not have any interest in owning cars: millennials. Well — guess what? — the shared lease program, which allowed multiple people to make payments toward a lease on a single vehicle, is a complete failure so far.

How complete of a failure?

From Automotive News:

In March, Ford Credit launched Ford Credit Link, a pilot lease sharing program that allows three to six customers to share a lease, scheduling their driving time and dividing payments any way they’d like. The captive finance company began piloting the program at three Austin, Texas, dealerships: Leif Johnson Ford, Maxwell Ford and Covert Ford.

Three months later, there are still no takers.

Emphasis mine.

That doesn’t mean Ford Credit is giving up on the idea. Ford’s financing arm will increase marketing for the product in hopes that more awareness will prod someone — anyone — to use the new lease program.

Everyone hates subcompact cars

Values of used subcompact cars are tanking, and this might just be the beginning the expected lease-return bubble.

According to Automotive News, subcompact cars from 2010-2014 model years have experienced a 26-percent plunge in prices versus the year before.

From AN:

Small cars are the canaries in the pricing coal mine. The weakness in prices of small used cars is starting to spill over into the new-car lot, too.

After years of new-vehicle lease growth, a widely forecast surge in off-lease vehicles has started. Because all segments eventually will be affected, automakers are taking steps to soften the blow to prices by finding new ways to encourage sales of those off-lease used vehicles.

Join the conversation
2 of 34 comments
  • Jimbob457 Jimbob457 on Jun 20, 2016

    I have to wonder why car people sometimes don't get the difference between low oil prices and high oil prices. With fracking you are unlikely to see oil prices much below $50. Nobody wants to drive a little econobox versus a real car. Ask Fiat.

  • Chocolatedeath Chocolatedeath on Jun 21, 2016

    Funny thing is I have never been to a dealer that tried to up-sale me a car that is 20-30 thousand more than the one I was looking at. Normally it would be only about 5-10 grand more, such as a higher level trim in a 5 series. Strange how folks pic OEMS like they are their favorite sports teams.

  • Lou_BC "Owners of affected Wrangles" Does a missing "r" cancel an extra stud?
  • Slavuta One can put a secret breaker that will disable the starter or spark plug supply. Even disabling headlights or all lights will bring more trouble to thieves than they wish for. With no brake lights, someone will hit from behind, they will leave fingerprints inside. Or if they steal at night, they will have to drive with no lights. Any of these things definitely will bring attention.I remember people removing rotor from under distributor cup.
  • Slavuta Government Motors + Government big tech + government + Federal police = fascist surveillance state. USSR surveillance pales...
  • Johnster Another quibble, this time about the contextualization of the Thunderbird and Cougar, and their relationship to the prestigious Continental Mark. (I know. It's confusing.) The Thunderbird/Mark IV platform introduced for the 1971 model year was apparently derived from the mid-sized Torino/Montego platform (also introduced for the 1971 model year), but should probably be considered different from it.As we all know, the Cougar shared its platform with the Ford Mustang up through the 1973 model year, moving to the mid-sized Torino/Montego platform for the 1974 model year. This platform was also shared with the failed Ford Gran Torino Elite, (introduced in February of 1974, the "Gran Torino" part of the name was dropped for the 1975 and 1976 model years).The Thunderbird/Mark series duo's separation occurred with the 1977 model year when the Thunderbird was downsized to share a platform with the LTD II/Cougar. The 1977 model year saw Mercury drop the "Montego" name and adopt the "Cougar" name for all of their mid-sized cars, including plain 2-doors, 4-doors and and 4-door station wagons. Meanwhile, the Cougar PLC was sold as the "Cougar XR-7." The Cougar wagon was dropped for the 1978 model year (arguably replaced by the new Zephyr wagon) while the (plain) 2-door and 4-door models remained in production for the 1978 and 1979 model years. It was a major prestige blow for the Thunderbird. Underneath, the Thunderbird and Cougar XR-7 for 1977 were warmed-over versions of the failed Ford Elite (1974-1976), while the Mark V was a warmed-over version of the previous Mark IV.
  • Stuart de Baker This is depressing, and I don't own one of these.