JD Power

Headlines for the Week for June 18th, 2018

Flying Cars to Take Off in Ingolstadt

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Long time listeners may remember a few months ago I mentioned Audi’s partnership with Airbus to start developing flying cars. As a refresher, these were very loosely termed cars. Basically it’s a three-part design, with a quadcopter, passenger pod and electric skateboard-like platform. The pod can be transported by either the quadcopter or wheeled platform, making it either flying or car, but not really “flying car.” I said at the time that the idea was pretty neat and more likely to succeed than any other system I’d seen and, sure enough, Audi has just received approval from the German government to start testing these in their headquarter city in Bavaria, Ingolstadt. Now, this is a long way from being like “oh my God, we are all going to be catching flying car taxis from the airports within five years,” but it’s a lot closer than I thought we’d see in my lifetime, so I’m hoping this actually goes somewhere. Onward and upward, Audi.

Volvo’s New US Plant feat. Dig @ Trump

In a time when automotive manufacturing jobs can be hard to come by in the US, who can we trust to bring back those jobs? Yep, the Chinese and Swedes! Volvo, which is owned by Chinese company Geely, formally opened their new factory in South Carolina, which will build the new S60 we’ll get to later. In addition to providing Volvo the chance to suck up to American buyers by focusing on the $1.1 billion investment in America and the 4,000 jobs the factory will host when construction is complete, the event gave Volvo execs the chance to cast some serious shade at Donald Trump and his supporters Nikki Haley and Governor Henry McMaster. Volvo CEO Hakan Samuelsson said “If you have trade barriers and restrictions, we cannot create as many jobs as we are planning to. We want to export and if suddenly China and Europe have very high barriers, it would be impossible. Then you have to build the cars there. And then all cars will be more expensive, you have to invest more tooling and have every model in every country. That’s against all the logic of modern economies that trade with each other.” It seems there’s a lot of commentary about our trade policy being against all logic, and yet here we are, threatening a 25% tariff on imported vehicles and auto parts. It’s almost like logic doesn’t factor into decisions at all, but what do I know, I’m only a master of business with a degree in political science who happens to like his cars cheap and fast.

Audi CEO Arrested, Thrown in Slammer

^Criminal

^Criminal

The fallout from the Dieselgate scandal continues still in Germany where this week Audi CEO Rupert Stadler was arrested based on concealment of evidence relating to the defeat devices on Volkswagen Auto Group vehicles. He’s actually remaining in custody because the prosecution thinks he’s a flight risk. Audi has had to scramble to name an interim CEO while their boss remains a jailbird, but this just continues to look bad. If the CEO of one of your major brands was aware of the effort to deceive authorities, former Volkswagen CEO Martin Winterkorn is probably shaking in his boots because you can bet he knew about it too. It’s a serious problem when a culture of corruption comes straight from the top, and you would’ve thought Volkswagen had learned its very expensive lesson, but by keeping Stadler as Audi CEO this long after the scandal came to light, maybe they need a couple more billion dollar settlements before the root out all the corrupt jerks. I’ll take my settlement in the form of a V10 R8, thank you.

Teslupdate #1,000,000,000

This will again not be the week when we have no Tesla news, because there was some wild shit going on with Elon Musk’s company this week. First, the not-so-wild: tesla completed the setup of a third production line over the weekend...in their parking lot. Yes, the new line is underneath temporary tents outside because the space is needed that badly to ramp up production to meet goals. Back when the factory was a combined General Motors and Toyota venture, they managed to crank out 8,200 cars per week from the inside of the place, so if Tesla needs to move outdoors just to reach 5,000, I think you can imagine how much more complicated those production lines must be and how much more space they take up.

Next came some serious shade thrown from General Motors. Actress Mary McCormack who you may remember from some sort of television shows somewhere, tweeted out a video of her husband’s Tesla Model S, which apparently just started catching fire while he was driving it and burst into flames in the middle of Santa Monica Boulevard. Tesla has no idea what happened or why, but GM jumped at the opportunity, offering the actress a free Chevy Bolt as a more dependable loaner car. Nicely done, GM communications guy Ray Wert.

Okay now we get to the crazy shit - on Sunday, Elon Musk sent out an email accusing a former employee of sabotage and intellectual property theft, as well as leaking sensitive information to third parties and the press. He followed that email up with another about someone potentially trying to sabotage a production line by starting a fire. Then on Tuesday Tesla filed a lawsuit against a former employee for allegedly having stolen confidential information and making false claims to the media. Then on Thursday, someone claiming to be a friend of Martin Tripp, the guy Tesla sued, called the Gigafactory to warn that Tripp was coming in to shoot up the place, causing a minor panic and for beefed up security until the county sheriff found there was no credibility to the threat. Then AFTER THAT, Tripp posted to Twitter an email exchange that he had with Musk about the lawsuit wherein they both called each other horrible human beings and generally behaved like children.

We’re not yet sure if the Sunday email and Tuesday lawsuit are connected, but if not, that means there are several people trying their darndest to mess up Elon’s life. And jeez, people if you like constant dramabombs being dropped, no need to watch daytime television, just follow Elon Musk on Twitter. This is ridiculous.

J.D. Power Initial Quality Honors Hyundai

The annual list of J.D. Power rankings for initial quality were released this week and, if you’ve been listening to this show and looking at their recent cars, you won’t be surprised to learn that Genesis, Kia and Hyundai are the top three brands. All of them being owned by Hyundai. Even Porsche comes in at just fourth spot and Ford in a somewhat unbelievable fifth. The trick is, the initial power rankings count the number of problems experienced per hundred vehicles in the first 90 days of ownership. If things are going wrong within 90 days, that’s generally not a great sign for future reliability, but certainly not a sign that cars with good initial quality will last longer, as may be the case with Ford. They also don’t measure the severity of problems, so a busted transmission is effectively the same weight as a windshield wiper motor squeaking, which is pretty misleading. Furthermore, as I’ve discussed before, automakers pay JD Power for the right to use their awards in marketing materials, so these sort of non-firsthand user reviews should be taken with a grain of salt. Nevertheless, Hyundai definitely deserves a look as they do make some pretty nice cars. Just, as with everything else, QUESTION EVERYTHING.

RC-6 Corvette

While I’ve never driven one, It’s my understanding that Corvettes are very fun cars to drive. But in the Netherlands, where people decided they’d rather have land where the sea was so they built a complex series of windmills to drive the sea back into the ocean, one man has gone and made his Corvette a bit more complex as well. Specifically, he modified his C6 Corvette to be remote controlled. We’ve seen full-sized R/C cars before, but doing so to a Corvette is an entirely different scale; one that cost about $4,000. It’s honestly really impressive that someone could pull this off, but I still think I’d rather be behind the wheel of that V8 rather than just puttering it around a parking lot. But that’s the Dutch for you - defying convention, and the ocean.

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Authored by
Devlin Riggs

Header image: When your GTI is the least athletic member of your automotive family tree.

Can Buyers Trust J.D. Power's Dependability Study?

J.D. Power’s annual Dependability Study was released this week and rather than running down the list of the best and worst, I’ll echo Autoblog’s encouragement to discard information from lists like this because the way they gather data is deeply flawed.

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First, they survey owners who have had their cars for three years – not more and not less. And you know what most cars still have after three years? A warranty. And you know why they still have a warranty? Because most manufacturers design their cars well enough that things shouldn’t go wrong within the first three years. Some trust their cars more and will give five year warranties or even longer, but for the most part, things shouldn’t be going wrong within the first three years.

Second, the dependability survey treats all flaws equally. Cars and brands are rated on a “problems per hundred” vehicle scale, so fewer is obviously better. However, if the parking sensors sometimes don’t see the wall in your parking garage, that’s recorded with the same severity as the transmission going out on your idiot neighbor’s Dodge Charger.

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Finally, J.D. Power Awards are pay-to-play, which means that, in order to publicize that they won an award, car companies must pay J.D. Power for the right to say they did. Paying for awards may not inherently lead to dishonesty when awards are given, but it certainly isn’t a super system that discourages playing favorites.

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So what can you do instead? Car companies generally have reputations for a reason. Lexus is at the top of the list and they belong there because they make fantastic, dependable cars. But then you know that not because of a dependability study, but because of the collective experiences of past and current owners whose stories have dispersed through the grapevine to inform public opinion. Acura and Subaru also make great, dependable cars, but they languish in the bottom half of this year’s dependability study, which is misleading, because you can almost certainly depend on them to get you from A to B, but you may not always rely on your USB port to read your Android phone or something small, and not trivial, but also not critical.

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But don’t just trust your preconceived notions about automotive brands, because they’ll lead you astray with companies like Kia and Hyundai, who are in the top seven of J.D. Power’s list and have definitely made huge strides in reliability in the past ten years. Read reviews from real owners on Cars.com or Edmunds or long-term reviews from Motor Trend or Car & Driver or any number of other reputable publications. Read about common problems with cars on forums and social media. Sure, you’ll be getting anecdotes, but you’ll be sourcing them from a larger crowd than either Consumer Reports or J.D. Power. But remember that people are 80% more likely to complain about a product on the internet than they are to praise one, so don’t let individual anecdotes color your opinion of a car if you truly want it. But if you start seeing many stories of similar problems, then that’s probably cause for concern, and you’re probably researching a Chrysler. Which, yes, was at the bottom of the J.D. Power survey, so you should probably research something else.

Devlin & G35 circle story attribution.png

Authored by
Devlin Riggs