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100 Leading Women in the North American Auto IndustryLearn more about the gala celebration and special section at: autonews.com/leadingwomen
AUGUST 3, 2015
Luxury titans:A case of toomuch variety?German brands add vehicles to pad profitsChristiaan [email protected]
BMW is renowned for sporty rear-wheel-drive sedans. But its front-wheel-drive 2-series Gran Tourer seats seven and needsonly a sliding door to be a full-blown minivan.
Meanwhile, Mercedes-Benz may need tochange its slogan to “engineered like no other[Japanese] truck in the world” when it beginsbuilding a luxury pickup based on a Nissan
Frontier chassis before theend of the decade.
In their quest to boost salesand achieve double-digitprofit margins, Germany’spremium carmakers aredivvying segments into ever-thinner slices. In the process,they are stretching theirbrands figuratively — andtheir cars literally — in wayspreviously unimaginable.
“We take into considera-tion what the investment is that we have tomake, what’s our gross sales potential,what’s the net sales potential after cannibal-ization effects and what’s the margin wemake on the car,” explained Ola Kaellenius,Mercedes board member for sales and mar-
see LINEUP, Page 18
F-150 fix: Elegant simplicityFord, Ram adoptlow-tech solutionfor tough IIHS testLarry P. [email protected]
In the high-tech world of pickups,where sensors and computers reg-ularly outnumber cylinders, oftenthe best solutions are the simplest.
Case in point: To pass the Insur-ance Institute for Highway Safety’svexing small offset crash test, Ford’ssimple, low-tech so-lution did the job.
Ford engineerswelded tubular barsto the pickup’sframe and placedthem in the frontwheel wells, fore and aft of the tire.
It was so effective that the re-designed 2015 Ford F-150 Super-Crew passed the IIHS offset test withflying colors, the institute revealedlast week. Rival Ram has decided touse a similar solution for all its pick-ups, beginning with the 2015½ RamRebel, released last month.
The IIHS testing on light-duty pick-ups is only beginning. On Thursday,July 30, the institute crash-tested a2015 Toyota Tundra. Results of theTundra test haven’t been made pub-
see TEST, Page 65
THIRD IN A 9-PART SERIES
future product
> EUROPE: Europe’s luxury brandswill embrace new technology —and fill every niche from compactsto crossovers. | PAGES 56-61 |
pipeline
IT’S ALL ABOUT THE SOFTWARESales are strong for global suppliers, but strategies to develop new products are aschallenging as ever. Meanwhile, computers are breathing new capability into brakes,powertrains, air conditioning and many other systems. For a report on these and othersupplier issues | PAGES 29-52 | For stories, blogs and TV reports from the ManagementBriefing Seminars this week in Traverse City, Mich., go to autonews.com/tcitySUPPLIERS
STATE OF
Did Sergio get it right?Six industry superstars delve intoSergio Marchionne’s dire warningsabout the state of the autoindustry. Does the Fiat ChryslerCEO know what he’s talkingabout? SEE ANSWER ON PAGE 23
F I R S T I N A 6 - PA R T S E R I E S
> ‘PURE ECONOMIC WASTE’Fiat Chrysler CEO Sergio Marchionne says the auto business has a big problem: A value-destroying addiction to capital. We dig into the details over the next 5 weeks.Aug. 10: The capital crisis ... and itsimplicationsAug. 17: R&D spending: How much is wasted?Aug. 24: The case for consolidationAug. 31: A matter of life or death for FCA?Sept. 7: Four alternatives to mergers
> ONLINE COVERAGEKeep track of the entire series as it unfolds,including video of the roundtable discussionthat appears in this issue:autonews.com/industryontrial
> ALLIANCE BREAKDOWNInternal documents show how the alliancebetween Volkswagen and Suzuki fell apartwithout producing any joint products — acautionary tale for companies seekingefficiencies through consolidation. l PAGE 3 |
Kaellenius: Iftargets are met,“We go for it.”
The yellow and red brackets helpedthe 2015 Ford F-150 SuperCrewearn a Top Safety Pick, IIHS said.
■ Pricierinsurance for F-150? Forddisputeshigher repairbills | PAGE 8 |
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