Porsche And Genesis Are Ranked as the Most Dependable Brands by Consumer Reports

The primary driver behind a Porsche purchase is commonly attributed to reliability. It must be the defining factor, right?

The renowned German performance marque clinched the top spot in Consumer Reports‘ 2020 assessment of the premier and most dependable automakers, closely followed by up-and-coming Korean contender Genesis. Subaru secured the third position, closely tailed by Mazda.

Languishing at the bottom were the Fiat Chrysler brands and Jaguar Land Rover, as per tradition. According to the report:

Consumer Reports recommends all models tested by Porsche, Genesis, and Mazda (all premium brands). However, Subaru narrowly missed this distinction due to the less-than-ideal projected reliability of its WRX sedan. Noteworthy is Tesla’s advancement, leaping eight positions owing to enhanced dependability exhibited by the Model 3 and Model S sedans.

The bottom-tier performers remained consistent, with Fiat, Mitsubishi, Jeep, Land Rover, Cadillac, Jaguar, Alfa Romeo, and GMC once again falling short. The test pool comprised 36 models from these brands, and only one received a recommendation: the Jeep Grand Cherokee.

The complete report is definitely worth reading. A pertinent highlight is Tesla’s progress up the rankings, attributed to CR’s “latest reliability data showing marked enhancement in the Model 3 and Model S,” as conveyed by senior director of automotive testing, Jake Fisher, to Automotive News. Although Tesla’s quality control has historically posed issues, indications suggest a notable improvement.

Considerable attention has been dedicated to scrutinizing the repercussions of the coronavirus crisis on China’s automotive industry and supply chain, given its enduring and detrimental impact on all stakeholders. The situation continues to escalate, with over 2,200 fatalities reported in China due to the disease, which is rapidly spreading across Asia and other regions. Manufacturing plants have ceased operations, showrooms are deserted, and travel anxiety prevails.

In response, as per Reuters, Geely (which holds Volvo and Lotus under its umbrella) has initiated a platform enabling clients to configure, order, finance, and purchase vehicles entirely via the internet. Geely even offers the convenience of arranging test drives at customers’ residences.

Although the conception of this initiative likely predates the virus outbreak, it affords Geely the opportunity to sell vehicles in a market apprehensive of large public gatherings. Here’s insight from Geely representative Ash Sutcliffe via Twitter:

Further insights on the virus’ impact on the local automotive sector, courtesy of Reuters:

Notably, sales of passenger vehicles in China, the world’s largest automobile market, plummeted by 92% in the initial 16 days of February compared to the same period last year, as highlighted by data from an industry association.

[…]  Nationwide auto sales are anticipated to diminish by over 10% in the first half of the year due to the outbreak, and by approximately 5% for the entire year, contingent on the trajectory of the epidemic.is effectively contained before April, according to the recent disclosure made by the China Association of Automobile Manufacturers (CAAM) to Reuters last week.

In the United States, the influence of the car dealership lobby is remarkably strong, and protective franchise regulations have mainly prevented us from fully engaging in online car purchases (with the exception of a few new car companies like Tesla, which has faced numerous battles at the state level to achieve that.) Putting aside the coronavirus crisis, one wonders when American consumers will genuinely have the ability to select and transact for vehicles beyond just Teslas entirely through the internet.

A significant motivator for every automaker’s shift to electric vehicles is China, the largest car market globally and a nation where the government is strongly promoting EVs due to pollution concerns. For Ford, Porsche, Volvo, and others to stay competitive in China, emphasizing EVs is imperative.

However, new car sales have been decreasing in China over the previous year, and as indicated above, the coronavirus outbreak has exacerbated this decline. Local brands have been particularly impacted, but no automaker has been immune to this downward trend.

Consequently, Bloomberg states that the Chinese government might have to prolong EV subsidies for purchasers, which were set to be phased out this year:

Extending the incentives would be advantageous for local EV manufacturers like BYD Co., BAIC BluePark New Energy Technology Co., NIO Inc., and even Tesla Inc., which recently commenced deliveries from its new Shanghai facility, marking its first venture beyond the United States.

[…] China introduced EV subsidies a decade ago, significantly contributing to the nation becoming the leading market globally. Initially, these subsidies reduced a vehicle’s price by up to 60,000 yuan ($8,700), excluding potential additional support from local governments. Presently, the subsidies can reduce a vehicle’s cost by a maximum of 25,000 yuan, depending on its driving range.

About four years ago, the government established a timeline to phase out these subsidies by the end of this year. Additionally, a credit system was implemented, mandating all automakers—both international and domestic—to manufacture at least some EVs. NEV sales constituted roughly 8% of Zhejiang Geely Holding Group Co.’s total sales last year.

While this might seem inconsequential overseas, the “most severe decline ever recorded for EVs in China” could have enduring implications on the strategic plans of every automaker.

A court ruling to temporarily halt the construction of Tesla’s Gigafactory in Germany due to environmental concerns posed a setback for the electric automaker. Nevertheless, it now appears to be only a fleeting setback. While environmental organizations attempted legal action to prevent deforestation for the factory in Gruenheide, a court ultimately rejected their injunction on Thursday without the possibility of appeal.

As per Reuters:

Tesla mentioned on Friday, “The tree clearance is progressing in a well-organized manner.” Tesla’s spokesperson Kathrin Schira stated that there were no environmental activists obstructing the process.

Last November, the U.S. electric car manufacturer announced its intention to construct a factory in Gruenheide in Brandenburg, Eastern Germany near Berlin, creating up to 12,000 job opportunities. Initially, this decision was applauded as a show of faith in Germany.

Tesla aims to begin production in 2021, notwithstanding the efforts of environmental activists who have exploited legal gaps in the planning process to halt tree felling until the completion of an environmental assessment to determine the potential endangerment of any rare species.