Canada: Paying Bills - The Mercedes Way

Last Updated: September 24 2019
Article by Crowe MacKay LLP

GROWING MCLAREN NORTH AMERICA MOVES HQ TO DALLAS

McLaren North America is moving its headquarters from midtown Manhattan to near Dallas, having outgrown its original office, the company announced Thursday. The British exotic automaker has been on a product push the past couple of years, which has led to ballooning sales and more needs from its office space. "As we've grown and expanded, it became crystal clear that being in the city just is not very practical and doesn't make a lot of sense," Tony Joseph, the automaker's president, told Automotive News. "Unfortunately, I've got some on my team who have not seen a McLaren because we're on the 24th floor of a high-rise."

McLaren will go from a 4,500-square-foot office suite in Manhattan to a 30,000-square-foot center in Coppell, Texas, a Dallas suburb, which will cost significantly less than the automaker is paying for the New York space, Joseph said.

McLaren began U.S. sales of its hand-built supercars late in 2011, and North America has quickly become the brand's largest global market. Last year, North America represented 33 percent of the automaker's 4,806 global deliveries. McLaren launched with nine U.S. dealerships, including a location in Dallas. In 2013, when the automaker was still building out its retail presence, the Dallas location sold more McLarens than any other in the world, Joseph said. "Overall, it's a fairly large market," he said of Dallas. "They should be somewhere between 85 and 90 new units this year." McLaren has 24 dealerships in the U.S. and three in Canada.

In 2018, McLaren sold 1,569 vehicles in North America, an increase of 21 percent from a year earlier. Joseph said through August, McLaren's North American sales are up another 17 percent. Joseph, already relocated to the Dallas area, said McLaren plans to have employees working from a temporary office in Texas by year-end, with building renovations set to wrap up by February. He said he expects most of the employees to make the transition from New York. McLaren has 27 employees in North America, though roughly half are field-based.

With the move to an industrial park, McLaren will have over 567 percent more space. And the brand plans to put that space to use. Through its bespoke program, McLaren Special Operations, the automaker lets customers design their own vehicles. But that often requires a trip to McLaren's global headquarters in Woking, England. "We're going to have our own on-site MSO area," Joseph said. "Ideally, we'd like the customers who are doing heavy specifications to go to the U.K., but that's not always practical. So we'll provide it on-site. It provides a real ease for them to get in and out of Dallas." Joseph said the building is about three miles from Dallas/Fort Worth International Airport and that's by design.

"We're going to evolve what our office will be," Joseph said. "We're going to provide both technical and sales training at this location. So for dealers and sales and technical people coming in and out, it really is a perfect location." When it comes to McLaren's new location, about 60 percent of it will be dedicated to the technical side of business, including the company's internal fleet of vehicles.

"We've grown our fleet of cars significantly over the past few years," Joseph said, noting that among McLaren's press, marketing and, track fleets, the automaker has around 50 cars to manage. "It's going to allow us to be able to maintain the fleet on site ourselves internally."

Source: McLaren and Autoweek

PAYING BILLS – THE MERCEDES WAY

Daimler Mobility is integrating its ePayment service, Mercedes pay, into Mercedes-Benz vehicles, the company announced at the International Automobile Exhibition in Frankfurt. The service will allow Mercedes-Benz owners to pay for parking, gas, and Mercedes-provided services through the multimedia system MBUX.

Source: Auto Finance News

FORD, GM RAMP UP PLANS FOR ELECTRIC PICKUPS

Large pickup trucks that tow most of the profits into Ford Motor Co. and General Motors are holdovers from another century—with heavy ladder frames and big internal combustion engines in the front driving the wheels in the back. Now, Ford and GM are racing to design radical new takes on their most profitable models, replacing petroleum-fueled engines with batteries in a bid to get ahead of the industrywide move toward EVs. Ford's F-150 pickup and GM's Chevrolet Silverado are the top-selling vehicles in the U.S. market.

Source: Automotive News

WHAT IS WRONG WITH THE 2020 FORD EXPLORER AND LINCOLN AVIATOR?

Deliveries of the redesigned 2020 Ford Explorer and Lincoln Aviator are being hampered by extensive quality control problems which have forced the company to divert thousands of vehicles to secondary facilities for inspection and repair. 

Ford's corporate office will not comment on the nature of the problems plaguing both cars, but insiders at the company's assembly plants described problems ranging from non-functioning air conditioning systems to transmissions that will not shift properly, according to an extensive report from the Detroit Free Press.

It's not unusual for a handful of cars to fail standard quality control checks, often for minor issues like mismatched trim pieces or wheels, or missing (or incorrect) badges, but what Ford employees are describing is a vehicle repair queue numbering in the thousands. The repairs are holding up deliveries of both the Aviator and Explorer from the Chicago facility where they are manufactured. "From what I've seen on what they call 'money cars,' or cars which are done, I would say they're currently getting maybe 80 to 100 cars (per shift) finished. Still, with somewhere north of 12,000 cars needing repairs, doing the math, you can see this is a huge project and a huge expense for Ford," an employee at Ford's Flat Rock Assembly facility in Michigan told the Detroit Free Press. According to the same employee, Ford has even outsourced some of the repair work to Roush, one of the better-known tuning companies affiliated with Ford.  In addition to the aforementioned transmission and air conditioning issues, employees also said some Explorers are having their chassis X-rayed to check for defects, and some Aviators are arriving with failed adaptive suspensions. Ford's plant employees say a quality control issue of this magnitude is "highly unusual."

With Ford scrambling to triage repairs of both vehicles, another problem has started creeping up: mileage. Brand-new vehicles rolling off the Flat Rock assembly line will often have up to 10 pre-delivery miles on their odometers; some Explorers and Aviators are racking up hundreds before they're trucked off to dealers due to the logistics involved in getting them repaired and validated. Thousands of Explorers and Aviators reportedly remain on delivery hold and Flat Rock has added extra shifts to help with repair and re-assembly. Contrary to what sources said, a Ford spokeswoman told the Free Press the repairs were not unusual.

Source: The Car Connection

2020 CORVETTE STINGRAY ORDERS HAVE SOME CDN. DEALERS 'OVERWHELMED'

'Meeting consumer demand, especially for a product like this, is going to be a challenge'

With a starting price of $69,998, the new 2020 mid-engine Corvette Stingray has Chevrolet Canada and its dealers hoping they have a conquest machine that will win over buyers of high-end sports cars in a declining market. "We've got a strong, loyal base of customers," said Jamie Dewhurst, Chevrolet Canada national marketing manager. "I feel really good about our prospects of holding onto our base.  "We also feel really good in terms of where we stand with potential conquests, whether it's Porsche or Jaguar or any of the entries in the segment." 

GM rolled out the eighth-generation Corvette — the C8 — in July, showcasing perhaps the most radical overhaul of the venerable sports car since it was introduced in 1953. A host of design changes include an exterior that GM says is inspired by fighter jets and Formula One cars and an interior featuring a 12-inch display and a long strip of buttons between the driver and passenger seats. 

Beyond GM's promising a base price below $70,000, full pricing details are not yet known. The Corvette will begin arriving at Canadian dealerships in early 2020, Dewhurst said and will be available in the same variants as those offered in the United States. The new Corvette will enter the market as many high-end sports cars have suffered sales declines at the end of a decade that was marked by growth. 

Through June, GM sold 706 Corvettes in Canada, down 22 per cent from a year earlier, according to the Automotive News Data Center in Detroit. Porsche, meanwhile, sold 630 911 models, down 14 percent, while F-Type sales dropped by 33 per cent to 159 units. July sales were not included because GM no longer reports monthly sales. GM has seen a high level of interest in the 2020 Corvette, Dewhurst said. "Meeting consumer demand, especially or a product like this, is going to be a challenge, no question," he said. "But internally, we feel really good about the numbers that we're seeing, and we're really excited to see where this car is going to take us." 

Lennox, whose dealership began taking orders for the new Corvette in 2017, said he has "enough orders in the bank" to cover the store for 12-18 months. "We've been overwhelmed by the outpouring of not only orders but the absolutely phenomenal customer response," he said. 

"The front-engine, rear-drive car has been around for so long. For Corvette to now go to a midengine car, we were a little pensive in advance, but the response from Corvette purists has been overwhelmingly positive." Dewhurst said his team would be working over the next several months to balance 2020 Corvette production with sales of the outgoing Corvette. Inventory of the current generation is expected to wind down over the next several months, especially as colder weather affects sports car sales in Canada, he said. 

"The current [generation] car will still sell well up until the new car arrives," Lennox said. "You'll always have some people who say they prefer the older model, and they'll be able to take advantage of savings and discounts that may not be available on the C8."

Source: Automotive News Canada

STRIKE CUTS OFF FLOW OF REPLACEMENT PARTS TO DEALERS

The United Auto Workers strike against General Motors Co. has curtailed delivery of service parts used to repair cars and trucks at GM dealerships across the country, the company acknowledged. GM's network of parts distribution centers and warehouses wasn't really touched by the UAW's last national strike in 2007, which lasted only two days, or during a long string of local strikes against GM plants in the 1990s or a selective strike during contract talks in 1984. This time around, however, the 49,000 UAW members employed by GM have set pickets outside all of GM's installations in the United States, including the distribution centers and warehouses that are at the heart of the company's service parts operations.

Source: TheDetroitBureau.com

EUROPEAN CAR SALES PLUNGE, DEEPENING INDUSTRY WOES

European car sales fell sharply in August, deepening the woes of an industry battling sluggish demand in key markets and the challenge of rolling out electric vehicles. Registrations dropped 8.4%, the steepest monthly decline this year, according to the European Automobile Manufacturers Association. The fall was partly due to exceptionally high growth a year earlier as manufacturers rushed out models ahead of tough new emissions-testing rules. Volkswagen AG shares lost 0.4% in early trading in Frankfurt and BMW AG was 0.3% lower. In addition to the risk of a recession in Germany, carmakers are also facing a slowdown in the Chinese car market.

Source: Bloomberg

2022 FERRARI PUROSANGUE SUV DETAILED IN NEW INTERVIEW WITH AUTOCAR

Two platforms will spawn 15 new models before 2023, report says

Ferrari appears to be the sole major Italian supercar maker without an SUV -- Lamborghini and Maserati are all aboard the SUV train by now -- but this oversight is expected to be remedied soon enough. Developed under the codename 175, and also under the name Purosangue, which means "thoroughbred" in Italian, the model is one of 15 new Ferrari models planned to debut before 2023, according to Autocar, that will be based on two distinct platforms.

In an interview with Ferrari chief technical officer Michael Leiters, Autocar has learned that one platform will be earmarked for mid-engine supercars like the F8, while the other will be for front- and midengine GT-style cars, which will include the new SUV.

The design has already been approved internally, Autocar notes, and will utilize Ferrari's scalable front-/mid-engine architecture. Both of these platforms will be able to support V6, V8 and V12 engines, with hybrid boost or without, and a variety of body styles and transmission positions. Out of these variables, the SUV is expected to be a five-seater with high ground clearance and will feature a height-adjustable suspension, focusing on on-road dynamics but permitting "some off-road ability," as Autocar puts it. The powertrain is expected to be derived from the SF90 Stradale, and plug-in hybrid tech is also expected to make an appearance due to audience demand. This means we should see a turbocharged V6 under the hood of the Purosangue helped by three hybrid motors, while the SF90 Stradale is tipped to pair those three motors with a 4.0-liter V8.

But fans of displacement should not fret just yet: Autocar considers a V12 engine option likely in the Purosangue. "SF90 is a new product with so many new innovations on the car, then we find the elements to go onto other cars," Leiters told Autocar. "The challenge (with the SUV) is a totally different one. There are some innovations to go on, but our organization has learned to do innovation."

A new approach to interiors will also be used with the SUV model and its siblings, one that Ferrari has dubbed "eyes on the road, hands on the street." This means a new infotainment system, a new steering wheel design, and new instruments, among other items.

Autocar also spoke with head of Ferrari design Flavio Manzoni regarding the appearance of the upcoming SUV model. "You start defining the design of the car in the first steps," Manzoni told Autocar. "In that defining phase, we work with the engineers. We can determine the proportions and the dimensions to have a very good base to work from. That's the case for the SUV, as well. Many SUVs are derivatives of other cars. Designers have many constraints due to the technical base. In our case, it's no compromise."The Purosangue, if that's what it ends up being called, will have no shortage of rivals when it goes on sale, some of which have not even debuted yet, including the Aston Martin DBX. But it remains to be seen if the Purosangue will lean closer to the profile of vehicles like the Lamborghini Urus or something far heavier and more luxurious like the Bentayga. We have a feeling Ferrari will wish to stay on the light side.

Source: Autoweek and Autocar

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions