General Motors Digest: July 3, 2014

In today’s General Motors digest: GM recalls a recall; the automaker gains market share in spite of itself; its bankruptcy judge believes it may have committed fraud; the U.S. Senate gets ready for a second February 2014 recall hearing; and Anthony Foxx vows to keep the heat turned up on GM.

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Mitsubishi Outlander PHEV Big In The UK

The Mitsubishi Outlander PHEV may not be coming to the United States until sometime between the autumn of 2015 and early 2016, but United Kingdom customers are already lining up at their local dealerships for a test drive of the SUV that can be had for the same price as its diesel sibling.

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GM Offers Incentives To Speed Up Ignition Recall Repairs

With 2.6 million vehicles needing new ignition switches fueling service bay backlogs, General Motors is offering its dealership network incentives to speed up the process.

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NJ Assembly, NY Governor Pass Direct Auto Sales Legislation

Tesla is one step closer to resuming direct sales of its electric vehicles in New Jersey after the N.J. Assembly passes a bill that would allow it and other ZEV manufacturers to bypass the independent franchise system in selling electric vehicles.

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Tesla Opens Patents To All Potential EV, ZEV Automakers Immediately

Tesla CEO Elon Musk has made available to all interested parties — including automakers — every patent related to the automaker’s electric-vehicle technology in the hope more EVs will be built.

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VW Pulled By Competing Incentive Offers For New SUV Assembly
Coalition Of Eight Unveils Plan To Encourage ZEV Production
China To Scrap 5.33M Non-Compliant Vehicles In 2014 To Improve Air Quality
Senate Committee Approves Move To Bar Hybrids From Further Solo HOV Access

Hybrid owners may soon need a co-pilot and a couple of backseat drivers to use HOV lanes, as the U.S. Senate Environment and Public Works Committee approved a six-year highway spending bill w ith an amendment that would redefine for states what vehicles can and cannot use such lanes for solo driving.

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EVs, PHEVs Faring Better Than Hybrids In Fourth-Year Sales Comparison

Though it may appear EVs and PHEVs aren’t flying out of showrooms in comparison to Toyota Camrys and Ford F-150s, IHS Automotive says that in comparison to hybrids, the electrified offerings are faring better in their fourth year of sales.

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Fiat Chrysler Automobiles' London Headquarters To Focus On Corporate Finance

Fiat Chrysler Automobiles’ new headquarters in London, England will be as small as many Silicon Valley startups, with a staff of 50 mostly focused on finance.

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Analysis: Toyota Could Bring $7.2 Billion To Texas Over Next Decade

Toyota’s big move from California to Texas may also bring a big return for Plano, Texas over the next decade, to the tune of $7.2 billion of economic activity.

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Corker: VW SUV Production Announcement To Come Sooner Than Later

Though no word yet has come down from Volkswagen on where the confirmed seven-passenger SUV for the U.S. market will be assembled, U.S. Senator Bob Corker of Tennessee says that decision would come “in the very near future.”

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Volkswagen May Announce Location Of New SUV Production Next Week
Study: Connecticut EV Dealer Incentive Program Could Improve Technology Adoption Rates

While most states and the United States government offer tax credits to consumers for purchasing an electric vehicle or plug-in hybrid, Connecticut instead offers dealers the incentive to sell EVs and PHEVs, a move research group Navigant Research claims could be more effective at bringing about greater adoption of the new technology.

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CA, MD Extend EV/PHEV Credit Programs, Federal Credit Increase May Follow

EV and PHEV owners in California and Maryland will be able to enjoy credits for the foreseeable future for going green, while one representative in Congress wants to up federal tax credits to $10,000.

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Ewanick's FirstElement Fuel Receives $27.6M Grant For 19 Hydrogen Stations

Former Hyundai and General Motors marketing executive Joel Ewanick’s newest endeavour — a hydrogen fuel filling station network called FirstElement Fuel Inc. — has won a $27.6 million grant from the California Energy Commission, allowing Ewanick to move forward with the startup.

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GM Changes Mind About Airbag Recall, Ignition Switches

Automotive News reports General Motors, already being hammered from all sides from its delayed recall of 2.59 million vehicles affected by a defect in the ignition switch, issued a customer-satisfaction campaign in mid-March of this year for 1.2 million crossovers whose airbags may fail to deploy in a side-impact crash, an issue known to the automaker since 2008. Once the National Highway Traffic Safety learned of the decision, however, GM did an about-face and upgraded the campaign to a full recall. In addition, its Executive Field Action Decision Committee considered a full recall as early as November 2010, opting to issue service bulletins four times between then and 2012 instead, which spokesman Alan Adler claims satisfied the issue thoroughly without the need for increased action.

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VW, UAW Consider Options Surrounding Chattanooga Plant

After backing out from its appeal over results of the February 2014 organization election at Volkswagen’s Chattanooga, Tenn. plant, the United Auto Workers is considering options to organize the plant, just as Volkswagen itself is considering several options outside of Tennessee for its new SUV.

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EPA Sets Lower 2013 Cellulosic Ethanol Use Requirement

Earlier this week, the Environmental Protection Agency put in place 2013 requirements for cellulosic ethanol for automotive use in the United States at 810,000 gallons, an amount far short of the 1 billion gallons Congress desired seven years earlier when the Renewable Fuel Standard Act came into force.

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Musk: Tesla Will Build Cars In China Within Next Few Years
New PSA Boss Tavares Prepares To Rebuild Company

Though PSA Peugeot Citroen secured funding in a three-way deal between itself, the French government and Dongfeng, new boss and former Renault COO Carlos Tavares has a hard road ahead of him as he rebuilds the ailing automaker.

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UAW Subpoenas Haslam, Corker To Appear At VW NLRB Appeal Hearing

Tennessee governor Bill Haslam and U.S. Sen. Bob Corker are just two of the 20 prominent Tennessee witnesses subpoenaed by the United Auto Workers to appear at the union’s hearing before the National Labor Resource Board later this month, where the UAW will appeal the results of the organizing election held at the Volkswagen plant in Chattanooga back in February of this year.

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Chevrolet Offers Incentives, Extends Truck Month To Take Back Sales Crown

Though Ram knocked Chevrolet off the monthly sales throne for the first time since August 1999, the brand is ready to reclaim their part of Truck Mountain by offering incentives and extending their annual Truck Month into April.

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CARB ZEV Credit Restructuring Leaves Tesla With Fewer Credits

A change to the California Air Resources Board’s Zero-Emission Vehicle credit program will leave Tesla with four credits per car cold for the foreseeable future, down from seven credits for every Model S through 2013.

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Mitsubishi Outlander PHEV Arrives In UK Showrooms Minus Premium Price

Already available throughout Europe, the Mitsubishi Outlander PHEV is now just arriving in United Kingdom showrooms at a post-credit price tag of £28,249 ($47,000 USD).

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Leaked Documents Link Anti-Union VW Incentive Offer To TN Governor's Office

Leaked documents linked to the United Auto Workers battle for the Volkswagen plant in Chattanooga, Tenn. point to a connection between Governor Bill Haslam and the German automaker regarding a $300 million incentive in exchange for over 1,300 jobs at a proposed SUV plant within the state.

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Gov. Perry Pushing For Direct Sales In Texas To Attract Gigafactory

With the possibility of bringing Tesla’s Gigafactory — and its 6,500 jobs — to Texas, Governor Rick Perry is actively pushing for legislation which would do away with the direct-sales ban currently preventing the EV automaker from doing more than presenting their wares to local customers.

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Tesla Reader's Digest Vol. 1: The Politics Of Dancing

In the first edition of the Tesla Reader’s Digest, Washington state makes nice with Tesla’s business model as Arizona ponders doing the same — while fighting three other states for the right to host Tesla’s Gigafactory, no less. Meanwhile, General Motors pens a letter to Ohio asking the state to force the EV automaker to play by the same rules as they already do, pricing of the Model S falls in Europe, and Edward Niedemeyer offers his view on how Tesla can topple the auto dealer monopoly.

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Viper Production Sidelined For Two Months Due To Slow Sales

Due to slow sales, Fiat Chrysler Automobiles will halt production of the SRT Viper for the next two months, with 91 hourly workers temporarily booted to the unemployment line.

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Marchionne Closes Chapter On Canadian Minivan Plant

While celebrating the successful turnaround for Fiat Chrysler Automobile’s Sterling Heights, Mich. plant, CEO Sergio Marchionne proclaimed the issue of upgrades made to the Windsor, Ont. plant with help from Canadian federal and provincial governments one no longer worth discussing.

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Volkswagen Mum On Alleged Expansion Of U.S. Plant

Though United States Senator Bob Corker of Tennessee claimed Volkswagen would announce an expansion of the plant in his native Chattanooga — slated to build a midsize SUV based on the CrossBlue Concept from this year’s Detroit Auto Show — if the workers rejected the United Auto Workers in last month’s attempt to organise the plant, the German automaker has remained silent as of this weekend.

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Corker: Labor Board Should Not Silence Lawmakers

Former Chattanooga, Tenn. mayor and current United States Senator Bob Corker urged the National Labor Relations Board not to silence him or fellow lawmakers opposed to unionization as the NLRB considers an appeal by the United Auto Workers over the results of the three-day election recently held at Volkswagen’s plant in Chattanooga.

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Barclays: GM Suffering From Worst Large Pickup Launch In 15 Years

Though the 2014 Chevrolet Silverado took home North American Truck/Utility of the Year at last month’s Detroit Auto Show, the large pickup and its brother, the GMC Sierra, have suffered from “the least successful large pickup launch over the last 15 years” according to Barclays Capital analyst Brian Johnson.

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Presidents Day, Warmer Weather Provide Small Jump In February Sales

Brief warming spells between polar vortices and Presidents Day sales boosted sales in February, though rising inventories and incentives raise questions about sales momentum heading into the oncoming spring selling season.

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Ford Raises Incentives To Clear Growing Fusion Inventories

As inventories of Ford’s Fusion continue to outpace demand — the result of a second plant brought online last year to keep up with demand for the newly redesigned midsize sedan — the automaker has been raising incentives to move more Fusions out of the lot.

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China To Relax Restrictions On Foreign Joint Venture Ownerships

China’s Ministry of Industry and Information Technology, in line with President Xi Jinping’s desire for opening the domestic economy to private and foreign investors, plans to relax restrictions on foreign ownership of joint ventures with local automakers in the face of those warning such a move would be the beginning of the end of the Chinese local auto industry.

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Beijing EV Licenses Ignored In Spite Of New Car Registration Difficulties

Though the municipal government in Beijing has set aside 20,000 license plates for electric vehicles in an attempt to offset their ongoing air quality woes, very few residents are interested, even if it means waiting a long time to own a gasoline-powered car.

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Marichonne Still Seeking Location For New Minivans

Fiat Chrysler Automobiles NV boss Sergio Marichonne, in talks with federal and provincial governments in Canada for loans to help prepare their factories in Windsor and Brampton, Ontario for new vehicle production, may come to a decision about moving forward with plans for where new minivans will be built by the end of March 2014.

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Tennessee Lawmakers Threatening To Kill Subsidies If UAW Wins VW Plant

Should the United Auto Workers win the upcoming election to represent workers at Volkswagen’s Chatanooga, Tenn. plant, the automaker may find itself shunned by state lawmakers as far as further subsidies are concerned.

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Dealers: Lengthy Long-Term Financing A Necessary Evil
Early ELR Adopters Receive Free Charging Stations

If you should become one of the early adopters who purchase a Cadillac ELR soon, the brand has announced that they will throw in a free charging station as a gift for paying $75,000 over the next 36 to 72 months for the luxury plug-in hybrid.

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Toyota Camry Still King of the Showroom, Challengers Closing In

For the 12 year in a row, the Toyota Camry is the No. 1 best-selling car in the United States, but how long its reign continues will depend on how well its competitors can do in their attempt to dethrone the king of the showroom.

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Off-Lease Boom Means Major Conflict For All Automakers

The Great Recession has given us so much since it began five years ago with the fall of Lehman Brothers and Washington Mutual, from underwater mortgages and high unemployment, to bailouts of the financial and automotive manufacturing sectors and credit freezes.

Regarding the last item, a byproduct from said freeze will flood automakers with the potential to retain and steal customers when more and more leases draw to completion in the next year.

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Ford to Idle Fusion Assembly at Flat Rock Plant for One Week in December to Control Inventory. Camry Incentives Blamed.

In August, Ford Motor Company started production of their mid-sized Fusion sedan at its Flat Rock, Michigan assembly plant, supplementing production in Mexico to keep up with demand.

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Never Say Never: Hydrogen, Diesel En Vogue Again

Remember this piece from the Honda Summer 2008 Hydrogen Collection? It was supposed to point the way to future of green fuel technology before the Tesla brought plug-in sex appeal down the ramp with their Roadster and, later on, the S, as well as the trend of compliance EVs from Chevrolet, Volkswagen and Kia.

But with sales of plug-in hybrids advancing far slower than originally expected regulators are taking another look at alternative ZEV powertrains.

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Hyundai Slashes Sonata Production & Incentives

The Hyundai Sonata is the oldest car in its segment and a new model is expected next year. Normally, when a car is about to be replaced by the next generation of that model, automakers usually start increasing incentives to move the metal. Sonata sales are down 11% from last year. Now, Hyundai has slashed production of its midsize car, allowing it to reduce incentives to the second lowest in the segment. Average incentive spending on the Sonata is down to ~$2,200. Only Honda’s Accord, with about $840 in incentives available is discounted less.

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Price Differential With Competing Pickup Trucks Has GMC & Chevy Dealers Upset

Many dealers are complaining that price differentials between the all new GM pickup trucks and heavily discounted competitors from Ford and Ram are leaving them with disappointing sales results. The new Chevy Silverado and GMC Sierra were launched in June amid heavy incentives from competitive brands. But the trucks, which have been praised by the press, are not moving quickly. Automotive News reports that a Pasadena, Texas dealer says that his supply is up to 170 days, compared to his normal inventory of 110 days supply. A dealer in Austin reports a 120 day supply, up from his norm at 90 days.

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GM Offers Incentives On Newly Introduced Pickups. Were They Priced Too High To Begin With?

Usually, in the U.S. pickup truck market, whichever company has the newest truck normally gets a bump in sales. While it’s hard to get Chevy guys into Fords and vice versa, about 6% of the market does shift to the most recently updated pickup because of businesses making decisions based on dollars and cents, not brand loyalty.

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GM Shells Out Cash "to Stay in the Electric Vehicle Game."

GM is sitting on 4.5 months of slow-moving Volt inventory, says the Detroit News. To make matters worse, production on the 2014 model is about to start. To make a dent into the 140 days of Volt supply, what do you think GM will do?

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As Car Sales Go Up, Deals Go Away

Sales won’t be the only thing up when September new car sales are reported today. (Keep an eye on TTAC.) “”Transaction prices in September are the highest in years,” said Jesse Toprak, research chief of TrueCar.com.

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$10,000 Off a Volt, Haters Gonna Hate?

The latest from USA Today suggests now is a good time to buy a Chevy Volt, if that’s what you really want. I checked in with former(?) TTAC scribe Captain Mike Solo, currently helping someone lease a Volt, and he says about the same: lease for $270 a month, with $1500 down. Which includes the government tax credit built into the residual…probably. So what does this all mean?

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Ford Reportedly Looking For $400 Million From Canadian Government As Belts Tighten Across Canada

The Globe and Mail’s Greg Keenan explored an interesting conundrum that Canadian governmental officials are facing; is it worth subsidizing auto industry manufacturing facilities, even with austerity programs in place?

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Call Your Broker: Edmunds Predicts Strong Quarter For Automakers

If you are thinking of buying some stock of an automaker, now could be a good time. Not because of the strong sales. Because of dropping incentives, paired with strong sales. This indicates a strong first quarter, which should drive up stock prices.

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Still Generous With Incentives, GM Sheds Market Share Nonetheless

GM’s turn-around hinges on a market share above 19 percent, board member Stephen Girsky said at an industry meeting in October 2009. “The public plan is 19 percent and change. That is what everything is being based on,” Girsky said during a panel discussion at a conference at Columbia Business School. Reuters was taking notes.

In the 3rd quarter of 2009, GM had a market share of 19.5 percent. The share climbed to 21.8 percent in January 2011, and eroded ever since.

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Edmunds Solves The Mystery Of The Full-Size Pickup Sales Boom

When we reported sales on Monday our conclusion was that “big is big again,” as full-sized pickups dominated growth in a surprisingly up month. So, how do you sell a ton of trucks in a month where gas was still hovering around the $3.50/gal mark? Easy: just throw some cash on the hood. Edmunds Autoobserver reports

From a low that generally occurred around April, Ford Motor Co., General Motors Co. and the Chrysler Group LLC have markedly hiked incentive spending on full-size pickups. In April, the average TCI for the full-size pickup category – which also inclaudes the almost statistically insignificant Toyota Tundra, Nissan Titan and Honda Ridgeline – was $3,261 per vehicle. At the end of September, the average incentive for full-size pickups ballooned by more than 30 percent to $4,281 per vehicle.

Executives from the Detroit automakers insist that this was not simply an inventory-clearing move (because, by industry standards, having three times your monthly sales on the lot is “acceptable”), but manufacturers have been trimming truck production all year and with Days To Turn rising, clearing off the lots makes sense. Especially going into the traditionally slow truck sales months of October and November. Hit the jump for more September incentive and transaction price data…

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Report Knocks "Big Battery" Plug-In Subsidies, Will The DOE Notice?

The main tool for the government’s crusade to get one million plug-in cars on the road by 2015 is the “Qualified Plug-In Electric Vehicle Tax Credit,” a credit that returns between $2,500 and $7,500 to purchasers of a qualifying vehicle. To qualify for the minimum $2,500 credit, a vehicle must have a traction battery with a minimum of four kW/h, and the credit adds an additional $417 in credits for every kW/h above the minimum. Why? Well, you might think that it’s because the DOE has done its research and determined that larger battery packs deliver more social benefits… at least until the 16kW/h limit (the exact size of the Chevy Volt’s battery), where the credit tops out at $7,500. But according to new research by Carnegie Mellon’s Jeremy Michalek, that basic assumption doesn’t appear to be true at all. In fact, his latest paper argues that the government would actually be better off subsidizing smaller, not larger, battery packs.

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Looking For Deals? Buy American!

Cash on the hood is on the rise again, says Edmunds, which keeps track of the Total Costs of Incentives (TCI.) Incentives definitely had been coming down from their January and February highs to reach a low in May (there were cars missing from Japan …), but now, manufacturer largesse is getting greater again.

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GM China Copies Old Detroit Tactic: Sacrifice Profits For Volume

GM China always had a comfortable lead over Volkswagen in China – at least on paper. More than half of GM China’s volume comes from small delivery vans, made by a three-way joint venture with SAIC and Wuling, in which GM held 34 percent. This share had been recently raised to 44 percent. The joint venture agreement allows GM to claim 100 percent of the small cars as theirs. “Whatever turns them on” (or Chinese word to that effect) say the other JV partners who happily count the cars again in their annual reports. There is one big problem with that. The “breadvan segment” (so called because the cars looks like loafs on wheels) has been shrinking and is ruining GM’s otherwise good Chinese numbers. Now, GM can’t take it anymore, and is using a familiar tactic: “GM is sacrificing profit margins to maintain market share in China, cutting prices of low-cost minivans by as much as 15 percent to offset slowing sales in the world’s largest vehicle market,” Bloomberg reports.

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The Future Of Electric Vehicles: Who? Where? When? How Much? How Many?

Forecasting the success of game-changing technologies is like predicting the weather. Despite a mediocre success rate, it is done every day. Ask me what the weather will be in 2017, and if I want to be absolutely right, I will say: “During the summer months, we expect sun with occasional rain, whereas in the winter months, some snow can be expected.” This prediction would protect my career in any company, but it won’t get me any press.

If I want press, I need to say: “In 2017, fire and brimstone will rain from the skies, which will cause a great conflagration, because all rain will have stopped a year earlier.” These predictions can be made with little risk. Six years down the road, who will remember the nonsense I said today? That thought crosses my mind as I read studies that predict the adoption of electric vehicles. Today, we have two of those. They couldn’t be more apart. We commissioned a third one.

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  • Lorenzo They won't be sold just in Beverly Hills - there's a Nieman-Marcus in nearly every big city. When they're finally junked, the transfer case will be first to be salvaged, since it'll be unused.
  • Ltcmgm78 Just what we need to do: add more EVs that require a charging station! We own a Volt. We charge at home. We bought the Volt off-lease. We're retired and can do all our daily errands without burning any gasoline. For us this works, but we no longer have a work commute.
  • Michael S6 Given the choice between the Hornet R/T and the Alfa, I'd pick an Uber.
  • Michael S6 Nissan seems to be doing well at the low end of the market with their small cars and cuv. Competitiveness evaporates as you move up to larger size cars and suvs.
  • Cprescott As long as they infest their products with CVT's, there is no reason to buy their products. Nissan's execution of CVT's is lackluster on a good day - not dependable and bad in experience of use. The brand has become like Mitsubishi - will sell to anyone with a pulse to get financed.