Author Archives: shinymetalboxes

2024 Lexus LS 500h AWD

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Dependable luxury. . .

By Gary S. Vasilash

One would assume that when buying a vehicle in the >$100,000 vicinity it will have a full suite of amenities, both infotainment and safety-oriented (a.k.a., “stuff,” albeit that being a somewhat plebian term), as well as comfortable (e.g., seats that could be utilized in an upscale house) and capable (as in all-wheel drive).

One thing that may not has as top-of-mind consideration as it probably should, something that may be taken for granted, is the level of dependability of the vehicle.

It is one thing to feel a bit of quiet satisfaction of dropping off one’s luxury vehicle with the valet at the front of the club. It is something else entirely to be waiting for the valet to return said vehicle because there happens to be a glitch in the lot.

Or it could be simply the issue of getting something to work (e.g., perhaps if you want to open the glove box you should simply, well, use the pushbutton-style mechanism to open the glove box, not have to find a button or something on a screen to do it—otherwise, it could be frustrating/annoying).

Which is to say that all luxury vehicles aren’t built with the same levels of quality and dependability as others.

And there is information to back this claim up.

The J.D. Power 2024 U.S. Initial Quality Study (IQS), which surveys owners 90 days after they’ve owned their vehicles. Presumably that is sufficiently long to get a sense of one’s vehicle and if something is going to break early, it has.

Lexus comes in second in the Premium category of the survey, behind Porsche (174 for Lexus and 172 for Porsche, with lower being better). Although one might argue that Lexus models and those from Porsche are largely different (but both are big in the SUV space), the most Porsche-like Lexus model, the LC, had the highest initial quality of any vehicle surveyed.

But there is another study that J.D. Power does, one that is more about the long run. It is the J.D. Power Vehicle Dependability Study (VDS). While IQS is after three months, VDS is after three years.

The categories VDS asks about include climate, driving assistance, driving experience, exterior, features/controls/displays, infotainment, interior, powertrain, and seats.

In the 2024 VDS Lexus comes out on top—by a considerable margin.

That is, the metric is “problems per 100 vehicles,” or PP100. A lower number is better.

Lexus has a score of 135 PP100.

Porsche came in second. It scored 175 PP100.

(Oddly enough, whereas Porsche came in first in the IQS but a Lexus was the overall highest in initial quality, in the VDS Porsche, second overall to Lexus, has the vehicle with the highest dependability, the 718.)

So one can feel confident that the LS 500h is something that is built with quality and dependability.

LS 500h AWD: Looks good. Drives well. Brings the amenities. And is built to be a quality vehicle. (Image: Lexus)

The Look

The sedan is low and lean. Specifically, 206.1 inches long, 57.5 inches high, and with a 5.8-inch ground clearance. It rides on 20-inch wheels. And the other obligatory specs are that it has a 123-inch wheel base and is 78.8 inches wide.

The Power

This is a big sedan, one might feel environmentally awkward driving it.

But this is a hybrid. There is a twin-turbo 3.5-liter V6 engine that is supplemented by electric motors so the total system horsepower is 354. This may not be the stuff of being pushed back in your semi-aniline leather seat when you push down on the accelerator (there are other LS trim levels for that), but it is something that results in a combined fuel economy number of 25 mpg, which is certainly outstanding for something of this scale.

(And going back to the issue of dependability, know that Toyota started building the Prius in October 1997, so it is undoubtedly the most capable producer of automotive hybrid powertrains by a long shot.)

The Interior

Luxurious. Sumptuous. Like that.

Leather is leather. Wood is wood. Metal is metal.

You’d think that’s, well, normal.

It’s not.

But it is normal in the LS.

Which is impressive.

(Although I must confess that when there’s white leather seating surfaces, I have some, well, concern. . . .)

The Tech

There is Lexus Teammate, a Level 2 advanced driver assistance system that provides the means for hands-off driving predicated on both a sensor suite (radar, lidar and camera sensors) and GPU processors. Eyes must be kept on the road and it works on highways that have been digitally mapped. Arguably, this type of system de rigueur for vehicles in this category, and in the case of Teammate, it provides the hands- and feet-free capability as would be expected.

A Thought

LS 500h AWD: All that is expected—and then some—in a reliable package.

Pacifica: A Scary Good Minivan

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Let’s face it: when it comes to Halloween, capacity matters when it comes to candy

By Gary S. Vasilash

Although things are undoubtedly scary right now in Auburn Hills, one vehicle that is holding its own against its primary competitors is the Pacifica minivan.

Through the third quarter 92,386 Pacificas have been sold.

That bests both the Honda Odyssey with 59,248 and the Toyota Sienna at 50,789.

Taking advantage of the season, Chrysler has decided to name the vehicle “the Official Minivan of Trunk or Treat.”

Load up the Pacifica minivans for Halloween. (Image: FCA)

This isn’t entirely fanciful, as the vehicle does offer the Stow ‘n Go Seating and Storage System, the built-in Stow ‘n Vac, and the Uconnect Theater System, which are key features for the season. (Arguably any season, but. . . .)

The seating system is helpful because when the second and third rows are folded into the floor there’s more than 140 cubic feet of cargo candy space.

The theater system allows the showing of scary films.

And, probably the most-vital feature of all is the vacuum cleaner, because let’s face it: Halloween is probably has the highest level of debris-generation of any holiday.

Incidentally: the Pacifica is available as a plug-in hybrid, so there is built-in efficiency on the way to the trunk-or-treat venue.

Tayron, Not Tiguan

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VW adding to its SUV lineup—in Europe

By Gary S. Vasilash

This is not the next-gen VW Tiguan for the U.S:

(Image: Volkswagen)

It is the European VW Tayron SUV.

Some have thought that the Tayron will become the Tiguan.

The next-gen Tiguan will be on the long-wheelbase configuration for the Tayron.

But the Tiguan will, according to VW of America, have significantly different “sheet metal, powertrain options and equipment set.”

In other words, for ordinary people who don’t care about things like platforms, the U.S. Tiguan is a completely different vehicle than the European Tayron.

That said, the Tayron, which is available as a five- or seven-seater, is an interesting vehicle, largely because of the powertrain choices.

There will be:

  • A mild hybrid based on a 148-hp engine
  • Two plug-in hybrids, each of which will offer an electric range of over 100 km (62 miles)
  • Two turbocharged diesels

The Tayron will be slotted between the Touareg and the Tiguan in the European market.

The Touareg, a premium crossover, hasn’t been available in the U.S. market since model year 2017.

However, the U.S. has both the Atlas and the Atlas Cross Sport, which the Euros don’t have.

The next Tiguan will be announced at the LA Auto Show in November.

Developing Autonomy Digitally

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MITRE, Mcity & NVIDIA. . .

By Gary S. Vasilash

When the subject is NVIDIA and the auto industry, it is often related to how companies like Volvo are leveraging the company’s silicon for getting autonomous capabilities.

But what is possibly more germane and interesting on the road to autonomous driving is an announcement by MITRE Corporation, a government-sponsored nonprofit research firm, that it is partnering with Mcity, a 32-acre site in southeastern Michigan operated by the University of Michigan where autonomous driving systems can be safely developed.

Mcity includes various road surfaces, road signs, building facades, various types of crossings, underpasses, guard rails, and other real-world elements of driving.

NVIDIA’s Orin. Not only does it develop tech for autonomy in vehicles, it also has tech that allows the simulations necessary to get autonomous capabilities developed. (Image: NVIDIA)

What MITRE and Mcity will be doing is using NVIDIA Omniverse Cloud Sensor TRX APIs.

Or said more simply: developing the means by which their will be a comprehensive digital representation of the entire Mcity environment, including the cameras, lidars, radars, and ultrasonic sensors on vehicles.

The objective of having things like a digital twin of Mcity is providing the means by simulations can be run to test the performance of virtual vehicles. Then this information can be used in the development of physical vehicles.

By running the tests first in the virtual environment there can be repeated consistent tests as well as the ability to adjust parameters to present different conditions and/or capabilities so that when the real car is on the roadways of Mcity it is more likely to be able to perform as expected due to the virtual testing.

Sure, in order to get autonomous capabilities vehicles are going to need to use things like the NVIDIA Orin processor. But to get to the vehicles, there needs to be a whole lot of development, which things like the NVIDIA Omniverse Cloud Sensor TRX APIs can be instrumental for.

There Will Be Oil

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Renewables are nice, but petroleum provides the profits, it seems. . .

By Gary S. Vasilash

In defining its purpose, energy company bp states, “Our purpose is reimagining energy for people and our planet.”

Apparently there’s not a whole lot of imagination at the company because it seems, according to reporting from Reuters, that said reimagination is going to be more of the same.

As the opening to the Reuters story has it:

“BP has abandoned a target to cut oil and gas output by 2030 as CEO Murray Auchincloss scales back the firm’s energy transition strategy to regain investor confidence, three sources with knowledge of the matter said.”

The whole notion of cutting oil and gas output by 40% by 2030 was announced in 2020. But that 40% was ratcheted back to 25% in February 2023.

That “abandoned” seems to indicate it is now closer to 0, if not all the way there.

As you may recall, bp came up with a moderately clever “Beyond Petroleum” slogan to play upon its name.

Seems like it is more like “Bullish (on) Petroleum.”

Meanwhile, over at ExxonMobil, when it announced its Q2 2023 financials, Darren Woods, chairman and CEO, stated, “We delivered our second-highest 2Q earnings of the past decade as we continue to improve the fundamental earnings power of the company.

“We achieved record quarterly production from our low-cost-of-supply Permian and Guyana assets, with the highest oil production since the Exxon and Mobil merger.”

Yes, oil is not going away anytime soon, EV investments notwithstanding

And while there are regulations around the world regarding the reduction of carbon emissions, how long are they going to stand if the market isn’t interested in those vehicles?

2025 Volkswagen Jetta SEL

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Most people need transportation but don’t necessarily want to compromise on how they achieve it but don’t want to be crushed by the sticker price. Enter the Jetta. . .

By Gary S. Vasilash

Cox Automotive’s “Auto Market Snapshot” for October 3, 2024, has it that the average used vehicle listing price was $25,172 (updated 9/20/24) and the average loan rate for a used car was 13.91%. And the average new vehicle listing price was $46,841 and the loan rate was 9.51%.

So taking those numbers into account, I am exceedingly impressed with the MSRP for the 2025 Volkswagen Jetta 1.5 SEL: $29,000. (Adding destination bumps it to $30,225).

Now were you to buy a used car at that average listing price of $25,172 and get a five-year loan fat the 13.91% rate (assuming nothing down) that vehicle would end up costing $34,929.

If you were to buy a brand-new 2025 Jetta for $30,225 and finance it for five years at 9.51% (again, assuming nothing down), you’d pay $38,320.

Or, a difference of $3,391 over the five-year period, or $678.20 per year.

Somehow it seems that ponying up $56.52 per month is well worth it for getting a car that is really quite impressive—and if you took at the average new vehicle listing price of $46,841, that $29K MSRP cannot be overlooked when the Jetta is a complete package.

2025 Volkswagen Jetta. (Image: VW)

When it comes to VW sedans, the compact Jetta is the proverbial last-man standing. The Passat, which the company once hoped would be its answer to the Toyota Camry and Honda According, went out of production in the U.S. after model year 2022.

Then there was the Arteon, model year 2024 was it in the U.S. for the upscale-but-affordable sedan.

This goes to the point that the U.S. is a tough market for sedans, especially when companies, including VW, are promoting their electric SUVs (the ID.4 in VW’s case), or their ICE SUVs (the Atlas, Atlas Cross Sport, Taos, and Tiguan, in VW’s case).

But apparently there are some people who recognize that the Jetta is a vehicle that fits their needs.

That is, in Q3 2024 in the U.S. there were 19,379 Jettas sold—making it the second best-selling vehicle in the VW lineup, with the Tiguan taking first place, at 21,231. This means the Jetta outsold the Atlas, Atlas Cross Sport, Taos, and ID.4.

Notably, compared with Q3 2023 the Jetta sales are up 35%, the biggest percentage increase of any of the VW vehicles.

This may go to the point of Cox’s findings about the high prices of vehicles nowadays.

The thing about the Jetta is that this is a completely competent vehicle, and that is not damning with faint praise.

The SEL is the top-of-the line Jetta. The S starts at $21,995, which is certainly something that plenty should consider (i.e., $3,177 less than that used vehicle).

But the SEL has much of the “stuff” that people want in a new vehicle—heated and cooled leather front seats (heated in the two back positions), a sunroof, 10.25-inch screen with navigation, BeatsAudio. . .

There is a 1.5-liter, turbocharged, direct-injection engine that provides 158-hp mated to an eight-speed automatic that offers both a sport mode and paddle shifting. The front-drive car is surprisingly peppy.

Adaptive cruise control, lane keeping assist, blind spot monitor. . .these and other tech-based features are part of the package.

The styling is more sophisticated than sporty or extreme: it is a design that won’t age fast.

It is sometimes said that kids swerve from the types of vehicles their parents owned.

So it went from sedans to minivans to SUVs. Perhaps we are getting to a point of a full circle.

The Jetta is certainly a good reason why that could be the case.  

Honda’s V8

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No, not for an Accord. It’s for the boating enthusiasts. . .

By Gary S. Vasilash

Back in the day when the Honda Accord was about the size of the current-generation Civic, Honda put a four-cylinder engine in the car, which did the job that needed to be done.

When a new Accord was launched, there was always praise among the motoring press that had a seemingly obligatory, “But only if it had a V8.”

After all, sedans were meant to have those things and it just seemed odd that Honda was more concerned with things like efficiency.

By 1995 the company gave in and put a V6 in the Accord.

But it never put in a V8.

Had it, it would probably been one heck of a V8 because Honda Marine has launched a new outboard motor, the BF350, which is a V8.

The award-winning Honda BF350—a V8 outboard. (Image: Honda Marine)

The new engine has garnered several awards already, including the National Marine Manufacturers Association and Boating Writers International 2024 Innovation Award and a Red Dot Award for Product Design (Red Dot awards, if you’re not familiar with them, are prestigious in the design community).

The Honda Marine description of the engine rings with familiarity for those who are more interested in powertrains for things with four wheels:

“a broader, flatter torque curve; smoother power delivery throughout the engine’s operating range. . .excellent fuel efficiency. . .superior reliability, ease-of-use, maintenance and ownership. A fully balanced, 60° offset precision crankshaft eliminates the need for a harmonic balancer—saving weight and seamlessly integrating with 60° engine design and nonlinear engine mount to provide exceptional operation with minimal vibration.”

And there’s this:

“VTEC (Variable Valve Timing & Lift Electronic Control), the BLAST (Boosted Low Speed Torque) System, Lean Burn Control, Programmed Fuel Injection (PGM-FI), a new Friction Reduction Technology, and Honda Intelligent Shift & Throttle (iST).”

Sounds like it has all of the characteristics that automotive V8 enthusiasts of yore were seeking from Honda.

Equipment Utilization Matters

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One thing that doesn’t get a whole lot of attention in discussions about EVs are the volumes in the factories where they are built. . . .

By Gary S. Vasilash

In announcing its Q3 performance, General Motors did the typical approach of accentuating the positive. As the company’s sales were down 2.2% in the quarter compared with Q3 ’23 and are down 1% year-to-date compared with ’23, that wasn’t going to be it.

Rather, as Rory Harvey, GM executive vice president and president of Global Markets is quoted:

“GM’s EV portfolio is growing faster than the market because we have an all-electric vehicle for just about everybody, no matter what they like to drive.”

While in Q1 ’24 GM’s U.S. share of the EV market was 6.5%. It reached 9.5% in Q3.

Clearly its EV sales are on an upward trajectory. But multiple models can drive up production costs.

The Models

Taking BrightDrop commercial vehicles out of the picture, since January GM has sold 70,450 EVs.

Specifically:

  • 20,318 Cadillac LYRIQs
  • 15,232 Chevy Blazer EVs
  • 8,582 Bolt EV/Bolt EUVs
  • 10,785 Equinox EVs
  • 5,252 Silverado EVs
  • 8,902 GMC HUMMER EVs
  • 387 Sierra EVs

The LYRIQ is built in Spring Hill, Tennessee.

The Blazer EV is built in Ramos Arizpe, Mexico.

The Bolts are built in Orion, Michigan.

The Equinox EV is built in Ramos Arizpe.

The Silverado EV, HUMMER EV and Sierra EV are made in Detroit-Hamtramck.

Seven vehicles.

Three factories.

And some 70,450 have been built over a nine-month period.

While there is certainly some sharing of components, there are things like body stamping that aren’t common, which means dies. And the interiors of the three vehicles built at the Factory ZERO plant are different executions, though, again, there are some common parts.

But the point is, there are different costs associated with these vehicles’ production.

Capacity Utilization

Let’s say that the production capacity of an assembly plant is 250,000 vehicles per year.

A rule of thumb is that such a plant must operate at 80% capacity in order to be profitable, so that would be 200,000 units.

Even if the production of EVs doubles from the end of Q3 to the end of Q4, that’s 140,900 vehicles, or 70.45% of a 250,000-unit-capacity plant.

Now in the case of the Ramos Arizpe plant, in addition to the Chevy EVs it is producing the ICE Blazer and the Honda Prologue EV. The former has sales through Q3 of 40,545 vehicles and the latter 14,179.

So with all four of the vehicles being built there, there is an output through Q3 of 80,741.

If that number is doubled by the end of the year to 161,482 (which, of course, won’t happen), that would be about 65% capacity utilization of a 250,000-vehicle plant.

But let’s go back to the 70,450 units of GM EVs sold through Q3.

It is worth noting that during the same period there were 70,710 Chevy Colorados sold.

One model. One plant.

And it shares Wentzville Assembly with the GMC Canyon (26,956 sold through Q3, or 6,638 more vehicles than the best-selling GM EV. In fact, you could add the sales of the Silverado EV and the Sierra EV onto that LYRIQ number and it would still be short of the Canyon: 25,957.)

Profitability in EVs is going to take GM and some of its competitors a bit more than reduced battery costs.

Better Than Having the Mats Thrown In

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Ford makes it easier for EV buyers to charge at home. What do Bronco buyers get?

By Gary S. Vasilash

Earlier this year the Boston Consulting Group released a report that says, in part, “perhaps the biggest challenge for OEMs is to produce the next generation of EVs profitably. We estimate that most OEMs currently lose around $6,000 on each EV they effectively sell for $50,000, after accounting for customer tax credits.”

Given that the current generation of EVs is what’s presently on dealer lots, that’s lots of money that the legacy OEMs are spending to move the metal.

But because of the billions of dollars they have spent on building out the capacity to produce EVs, they want to keep the production lines running.

Consequently, they are coming up with things that will make EVs more appealing to customers, the $6,000 be damned.

Buy an EV. Get a charger. (Image: Ford)

Earlier this week Ford CEO Jim Farley wrote, “Cheap lease deals on electric vehicles are popping up everywhere. Ford believes it will take more than jumbo rebates to truly break through with the estimated 19 million people in the U.S. interested in electric vehicles.”

Note that he writes “it will take more”—something additive. The rebates and incentives are still part of the game.

Farley goes on to provide details on how Ford is addressing this, through what they call the “Ford Power Promise.”

To provide ease of mind for people, this includes such things as complementary roadside assistance, expanded 24/7 advisor support, and the ability to use its Plug and Charge service that allows a driver to plug in at a charging station and have the electricity charged to the driver’s FordPass account.

But perhaps most significantly, Farley writes: “Buy or lease a retail Ford Mustang Mach-E, F-150 Lightning or E-Transit and take a complimentary home charger with you or have it delivered, and when you’re ready, an expert comes out to install it at no charge for a standard install.”

That’s right: Ford is paying for customers to have home charging capability, something that costs, on average, $1,000.

This could be a clever marketing approach to getting more people in Ford EVs now (the offer expires on January 2, 2025) and presumably next-gen EVs—after all, if the charger is there, people probably figure they might as well use it.

Consider that both the Mach-E and the E-Transit qualify for the IRA tax credit of $3,750 and the F-150 Lightning the full $7,500.

Go buy an Explorer or Bronco and the only tax-related thing will be the sales tax that you’re paying.

Seems that this EV transition is not only costing the OEMs an enormous amount of money, but let’s face it: the government isn’t magically making those credits appear, so all tax payers are kicking in, as well.

About Automotive Loyalty

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Put out good products, and people will come back and buy. . .

By Gary S. Vasilash

J.D. Power has a simple way to calculate customer loyalty to a brand.

Not easy.

But simple.

That is, it gets information from some 16,000 dealers about sales.

Then it creates a subset of those sales: Those that included a customer replacing an existing vehicle with a new one.

Then it creates a subset of that: Those transactions in which the old and new are the same brand.

And so it has released its “J.D. Power 2024 U.S. Automotive Brand Loyalty Study” based on sales between September 2023 through August 2024.

The study includes some things that might be expected and some surprises.

As for the expected: Porsche is the highest-ranked Premium Car and Ford has the high-ranked Truck.

But then things get interesting.

As in the top brand for loyalty in the Premium SUV category: Lexus.

And the Mass Market SUV isn’t something from Ford or GM but Honda.

When it comes to Mass Market Car, the top two are Toyota and Honda.

Of course, when it comes to Mass Market Cars you can’t get one from Ford or GM, as they have abandoned the segment.

Here’s the thing: in the first half of 2024

  • Toyota sold 277,233 Camrys and Corollas
  • Honda sold 210,509 Accords and Civics

I suspect that both companies are making some money on those vehicles.

What’s more, as Lexus is a Toyota brand and as Honda is, well, Honda, they are doing well loyalty-wise when it comes to their SUV offerings, too.