What is wrong with Alfa Romeo?

When someone says Alfa Romeo, what do you think of? Is it Italian style, sophistication and a sporting heritage? Or is it breaking down, dodgy electrics and horrendous depreciation?

When AutoUX picked up our Giulia Veloce in September we had a mixture of those two thoughts. The Giulia had some marks in the paint which immediately caused some concern, but thankfully since then the car has been almost trouble free.

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The dealership itself also didn’t help with the impression. Lots of shiny surfaces and gleaming cars, but dirt and dust in the corners, coupled with your stereotypical greasy looking salesman sat in the corner. Also being paired with the other FCA brands of Jeep, Fiat and Abarth the dealership didn’t feel very focused on the Alfa Romeo buying experience.

Choosing the Alfa Romeo still felt like a gamble. Even in 2018 it’s hard to remove those fears of poor workmanship and sloppy customer service. When we realised the 3 year warranty included with the car was actually only honoured by the manufacturer for 2 years and the dealership for the 3rd year we lost even more faith.

The thing that convinced us to take the plunge though was the availability of short term leasing. We took out a two year lease which gives us the chance to try out the car, and if it’s a dud, then it’s just 24 months of pain before moving onto something else.

Alfa Romeo themselves were keen to push us onto the more traditional PCP route (Personal Contract Plan, otherwise known as a deposit, a monthly fee and then a final balloon payment to own the car). For us though, a 2 year lease was perfect, with no desire to own the car eventually, having this option taken off the table wasn’t a problem.

So what can Alfa Romeo do to help fix this brand problem? 

Well, they’re already making changes for the better – the cars themselves, specifically the Giulia and Stelvio have been built on an all new, much more focused platform, coupled with decent engines offering the horsepower to match the styling and that sporting heritage. Over $5 billion has been spent developing these cars and the reviews show it has so far been a success, with the Giula being seen a great handling sports car to rival the C-Class and 3-Series. The Stelvio is seen as a great handling, sporty SUV which rivals the Jaguar F-Pace, Land Rover Velar and Porsche Macan.

With Alfa Romeo’s planned roadmap, there are also plans for a new smaller SUV which will make the brand that much more appealing to a wider range of the public, who desire style and performance, but with a bit of extra space for the kids or a dog.

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Alfa Romeo have also realised that the warranty they were offering isn’t good enough compared to rivals. They’re now offering a 5-3-5 plan – 5 years warranty, 3 years servicing and 5 years breakdown cover.

The next thing that needs to improve is the dealerships. A less stereotypical set of sales staff would be a great start, with more women being represented. This would make the dealerships feel more welcoming and inclusive. The pairing with Fiat and Jeep makes Alfa Romeo feel less premium than it could be. Standalone, or perhaps pairing with Maserati could be worth exploring, but first the old, tired models, the MiTo and the Giulietta need to disappear. At the moment they drag the brand down, rather than lifting it up and if Alfa Romeo want to be regarded as a premium brand, bringing out more premium, all new models, or otherwise axing these two models and letting the small SUV fill their space would be a good start.

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After driving the Alfa Romeo Giulia Veloce for 12 months how have our thoughts changed on the brand? Based on our local garage we’re still not confident they’re fully commited to making the change, but based on the driving feel of the Giula we’re confident if more people could test drive the range, then more people would seriously consider taking the plunge.

With the GTV and 9C on the horizon, coupled with mild electrification promising even more performance, Alfa Romeo has a very sporty future ahead, just as long as the current staff don’t dampen this latest wave of enthusiasm.

2017 – a year of self-driving progress.

So it’s time to ring in a new year, with 2017 flying by we’ve seen a huge amount of progress in the automotive industry.

We’ve finally seen Tesla Model 3’s leaving the factory, albeit rather slowly and far behind the original targets.

We’ve seen the tech giants, Google, Apple, Uber and others all make progress with self driving technology. Google span off their self driving division to become Waymo, which has had fully self-driving cars on the road, letting the public get their first chance to experience a ride without anyone driving. Apple have been altering their goals, but still making progress and Uber have had their self driving fleet on the road in Pittsburgh after some initial legal issues. Uber also announced plans to buy over 20,000 autonomous cars from Volvo.

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The car giants haven’t rested on their laurels though. Almost every brand has shown off concepts, made steps into on-the-road trials or launched models with some from of autonomous elements. Mercedes have shown off their ever advancing tech in the form of Drive Pilot in the E-Class, Nissan have launched ProPilot in the new Leaf, Volvo have launched self driving trials, with real world participants and we couldn’t forget to mention Tesla, who have been tweaking their Autopilot technology further during the year, launching models with ever more cameras.

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There has also been a lot of progress with electric cars, from 48v mild-hybrid announcments from lots of manufacturers including Alfa Romeo, Maserati, Volvo and more. More PHEV Plug-in hybrids from BMW, MINI, Mercedes and more pure electric cars from Nissan, Smart, BMW, Volkswagen and others. We’ve also seen the all new Roadster and SEMI from Tesla which are yet again shaking up the industry.

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2018 promises yet more innovation and electric and self-driving features in more and more of the public’s daily drivers. We should also see a lot more deliveries of the Tesla Model 3.

The Hypercar beating EV? The Tesla Roadster.

Tesla had a little surprise to talk about during their “Tesla Semi” unveiling. An all new version of the Tesla Roadster, the car that set the wheels in motion for Tesla to become the leading electric vehicle producer.

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The specs on this new Roadster are monstrous, 0-60mph in 1.9 seconds. 0-100mph in 4.2 seconds and over 250mph as the top speed. The power for this comes from a 200kWh battery pack and 3 motors, providing 10,000Nm of wheel torque.

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And how much does this all cost? $250,000 is the suggested price, with a $50,000 deposit being taken if you’re keen to be one of the first to have one on your driveway. You’ll have wait a while though as first deliveries are likely to be late 2020, and based on Tesla’s previous history of meeting targets, it’s likely to be 2021 until you get a glimpse of one outside of motorshows or San Francisco.

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How is this changing the car industry and automotive experience? It’s bringing incredible performance to a much more affordable price point, comparitively speaking vs the hypercar world of La Ferrari, Porsche 918, Koenigsegg, Pagani and Bugatti territory. It’s also challenging tyre manufacturers to develop even better tyres that can cope with regular high acceleration.

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Of course it’s also setting a benchmark for electric cars overall. Why lust after a fuel gulping hypercar, when something electric can out perform it in acceleration, top speed and even range? There’s a pleasure in that visceral engine sound coursing through your ears, but for a daily supercar, at this early stage the Tesla Roadster seems hard to beat.

Autonomous cars. Where we are and what we’re aiming for.

 

Up until a few years ago autonomous cars didn’t seem to really be on the horizon. A product that was felt an inevitability, but one far off in the future. Mercedes had pioneered some elements of dynamic cruise control, but otherwise the industry, at least outwardly, seemed fairly quiet. Newer innovations included lane guidance and auto braking, being developed initially by Volvo and now widespread across almost all brands.

Within the last 3 – 5 years there has been huge progress and we’re in a position where you can walk into a showroom and drive out in a car that can almost drive itself. I say almost because as it stands no manufacturer has reached the point of perfection as yet, but it appears to be getting ever closer.

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Tesla Model X with Autopilot.

Tesla have been renowned for their Autopilot, which sells itself as self driving, but this is more of an advanced form of cruise control, relying on the driver to take control whenever the car reaches a point it can’t quite understand – but every day the thousands of Tesla Model S and X on the roads contribute more knowledge to Tesla’s AI, constantly improving the product.

The latest models now come as standard with all of the hardware for self driving, but the software remains locked unless you’re willing to pay a hefty price tag. What this means though, is that for every Tesla sold with the hardware, Tesla can understand how the car would have responded whenever it gets into an emergency situation and see if Autopilot would have prevented the emergency or accident. It does seem though that Tesla are providing the hardware on all cars for their benefit, to be able to compile your driving data and enhance the Autopilot product for the customers who can afford the extra price of safety.

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Volvo is another manufacturer keen to lead the self driving market, and they’re known as a company which prides itself on being very much safety first. Introducing some of the key safety elements into vehicles, they even introduced the safety belt – and avoided patenting it – so all manufacturers could use this technology and save lives, even if customers had decided against purchasing a Volvo.

Volvo are making strides with their self driving technology and have partnered with UBER in the USA to test their cars. This hasn’t been without controversy though, with UBER failing to get appropriate licenses for this and having to move the trial from San Francisco to Pittsburgh. They’re also trialling self driving cars in Gothenberg and in summer 2018 this trial also moves to London.

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A Volvo XC90 self driving for UBER.

The progress that companies are making with autonomous driving has increased in speed. From just a few years ago, fairly basic technologies such as lane keeping assist and road sign recognition have now been combined into a more useful package. With more mileage and trials by the major car companies it seems like a self driving future is inevitable.

It also brings about the challenge to car companies of non traditional brands taking over their place. UBER, Google and Apple are all competing as well so the competition is ever increasing.

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One of the self driving fleet from Waymo (previously Google).

Of course, with cars driving themselves, plenty of road users will have concerns, and rightly so in some cases as proven by recent high profile accidents such as a Tesla Model S crashing under a trailer and killing the driver. This has been associated with the driver not paying attention to his surroundings, but perhaps he was taking the name Autopilot more truly to it’s name then Tesla intended.

There are also other concerns, how will self driving cars change car ownership? Will self driving cars create a risk of external control limiting your usage, perhaps in the  form of hackers, or a controlling government implementing curfews. What will people do with the time freed up from driving? Will there be job losses when self driving lorries/trucks/buses take to the roads?

This new technology opens an whole wealth of issues, it’s an interesting time ahead.

The never ending battle of technology vs the car manufacturing cycle.

 

The manufacturing cycle of an average car is a long one. From the first day of planning through to the car being launched to the world takes from 4 – 5 years on average, which poses a variety of technology problems. 4- 5 years feels like an absolute age in the technology industry. 5 years ago we had just seen the iPhone 4s launch and Snapchat and Instagram were still in their infancy, yet brand new cars released in 2016 were being planned at this point.

The first day obviously isn’t the day all of the decisions are made, but there are phases along the roadmap where things get locked down to ensure the production cycle will work. This varies from company to company, but a specific example I can share is via Bentley. It takes around 48 months to design a Bentley and some of the architecture for infotainment systems can be defined even earlier. Sometimes this is due to technology sharing amongst the wider parent group, in this case VW. For Bentley’s new 2-seater sports car, which is due to launch in 2021, the lock down date for the interior technology has already passed in 2016. With a 5 year lead time between this point and the car reaching customers, it’s easy to see why the digital experience can lack behind the rest of the tech world.

A recent example is the £150,000+ Bentayga. The entertainment system has an 8 inch screen with a resolution of 800 x 480 pixels (116 pixels per inch), which compared to the Samsung Galaxy S7’s screen at 2560 x 1440 pixels (577 pixels per inch) is pretty lacklustre.

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Bentley have adopted some more up-to-date technology though, by having Apple Watch integration you can control some of your in-car settings remotely. Although for the exception of setting the climate control to pre-warm or cool the car I’m not sure why you’d need to remotely turn on your massaging seats. If you’re already in the car, the button to activate this would be much faster to use – even if you’re being chauffeured and sat in the back – so some of this technology is part of the sales pitch and may exist because it can, but may not be actively useful for the customer.

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Another issue with the car industry is the reluctance to provide software updates to improve the usability of the digital experience. Occasionally there will be updates to mapping for example, but for the general rule, the car you drive out of the dealership won’t change one bit until the day it’s scrapped. One manufacturer which skips this trend is Tesla who have taken a different approach.

Tesla famously make use of a rather large 17 inch screen in a portrait orientation and a further screen above the steering wheel. The hardware for both the car and technology is obviously fixed at the point of manufacture, but the software is frequently updated via it’s inbuilt connection (or your wifi network) and brings not just software fixes, but actual visual changes and improvements to the way the car works. The most recent version is V8.01 which brought design changes and completely altered the digital layout on some of the system screens. It also brought along Autopilot improvements (Tesla’s “self driving” system which is currently more of an advanced cruise control), but only to cars with compatible hardware, so some older cars are now incompatible with certain features which brings in a level of obsolescence.

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So what can manufacturers do to help bridge this issue of the manufacturing cycle and the continual march of technology?

By being influenced by the tech industry itself.

  1. Add the same technology across the model variants, no more 5 inch screen on the base model and a 9 inch screen for the percentage of customers who pay for the upgrade (an example would be the 2016 Mercedes E-Class). Differentiate models based on the power/range/interior styling instead. This would help simplify the manufacturing cycle and ensure a consistent experience across the range and reduce the testing burden of multiple variants.
  2. Add the most powerful hardware available within budget at the time. This would allow for future software updates or new options that you hadn’t considered at the lock down stage.
  3. Hire great teams of designers and researchers to work on your long term digital experience. Once a car is launched it shouldn’t be forgotten about and the team focused on the next secret model. There should be a greater continued focus on improving and keeping models up-to-date throughout their 5 – 7 year sales lifecycle (with reduced support once the car has come off the new car market, providing support for software bugs and glitches).

 

The disparity of technology amongst car manufacturers and price segments.

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We live in a time where the technology in your pocket, is far more advanced than the technology in your car. In almost all cases, your phone is likely just a year or two old and forever competing with three to four main rivals driving technology onwards. Cars are trapped in a longer life-cycle, where even if you’re buying the latest and most expensive car on the first day it’s released, it will have been signed off for production around 4 years earlier.

If you’re buying a car that’s a bit more average, perhaps a Ford Focus rather than a Mercedes S-Class, then the technology is even older, and if you’re buying it once it’s been on the market for a few years you might be purchasing something that was designed almost 10 years earlier. If you’re paying for something at the lower end of the market, a Citroen C1 or Ford KA+ then you have even fewer options, in fact a lot of the technology on higher end cars won’t be offered at all. Just because you’re buying a low-cost car, should you be missing out on the technology that you’d expect from even the most basic smart phone. Bluetooth calling, sat nav and more?

Technology tends to trickle down within the car industry, again using the Mercedes S-Class example, ABS brakes, air bags and ESP have all made their debut on this model, before filtering down to the slightly cheaper E-Class and then the C-Class and then the A-Class. But today consumers are expecting more and more technology as it becomes ever more engrained in their lives and when for example the top of the range A-Class, can cost well in excess of the bottom of the range E-Class, then you can see why manufacturers are often inclined to not add a wide range of technology as standard.

Car manufacturers typically use technology to differentiate their range and offer this at a huge cost. This creates a technology split, where the majority of people will drive the basic version of the car, until the car manufacturer slowly adds more technology for free to compete with rivals as the car ages. For example, Mercedes created an “AMG Night Edition” of the E-Class when it was in the last year or so before being replaced which included almost all the extras you’d normally have to pay extra for, as a temptation to keep you from straying to Audi or BMW.

The german trio of Audi, BMW and Mercedes all offer technology packs to improve the fairly basic experience in their base models. If we compare the A4, 3-Series and C-Class, they all now come with basic sat nav and a fair range of safety equipment, but to get the technology you’d really want, you’d need to spend extra on option packs. For instance, with the Audi A4, there’s a technology pack at £1400, providing you with an 8.3 inch display which sits in the centre of the dashboard, a multimedia interface (i.e you can connect your phone via bluetooth to stream music) a touch controller (i.e the thing that lets you use the big screen) and satellite navigation maps.

If you want to actually have the experience you see in all the brochures, press shots and TV adverts, with the sat nav appearing behind the steering wheel, then you need to pay an additional £975 for the light and vision pack. Another technique as you can see is to bundle in options within one pack, meaning to get that one item you really want, you’ll end up paying for 3 – 4 other pieces of tech you have no interest in.

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Technology can often draw you into the car, from seeing the TV or web adverts, perhaps the journalist reviews on YouTube, but technology still feels like a compromise in today’s vehicles. Should getting a nicer sat nav unit that sits behind the steering wheel really cost £2375, remembering that generally every pound, dollar or yen of optional extras you add, dissolves into nothing when you come to sell the car. Also in the increasingly popular personal contract leasing, adding a £500 option will often be priced at £500 divided by the number of months you’re leasing the car, so it can become very expensive, very quickly. Pricing technology at a high cost point means there’s limited availability so your car would have to be a custom order which could take up to 6 months depending on manufacturer, and with only a limited number of cars having the exact combination of optional extras, the customer support and ongoing compatibility can often be limited.

Making technology more affordable would increase uptake, suggesting a lower average price could be charged as the development costs would be spread further. It also means the car market would be advancing quicker than it currently is.

The other area of technology support within the car industry is the ongoing support and updating of hardware in the market place. There are very few manufacturers which will proactively update software for anything ‘non-essential’ like your sat nav. Recently I became aware of a software update for my car – which would add the external temperature display to the in-car screen. My car has all the sensors, but the temperature screen had been missed off on the early batch of cars. To get this update I had to use a combination of web forums, Twitter and a customer service number to understand exactly what the update was and to get the detail on what to relay to the dealership as they couldn’t find a trace of it (as it wasn’t a mandatory update). I then needed to book the car into the garage and wait for almost 3 hours for the update to complete. You can see why dealerships and manufacturers aren’t keen to encourage this step as it ties up very profitable service bays which could be otherwise better used for the garage finances.

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The end result of a 3 hour software update.

Only a few manufacturers are starting to offer OTA (Over The Air) software updates, the main one being Tesla and to a limited extent on the new E-Class. Tesla’s way of updating their entire portfolio of vehicles on the road with updated software means that every car is up-to-date with the latest version and in the case of Tesla, can also be fully compatible with adding data to their Autopilot system.

Over the air software updating does bring a lot of risk. People don’t want to find their car ‘bricked’ or a feature they’re familiar with to suddenly stop working as they’ve grown to know. Generally new features can be added, but the core fundamentals (how to open the sunroof, turn up the heating, turn the radio on) shouldn’t drastically change. It also brings a lot of potential reward. If you’d bought a Tesla Model S in 2014, you’d still have an ongoing set of improvements and enhancements appearing for you as the months pass. Tesla have just rolled out version 8.0 of their software, and unlike my Mercedes C-Class, no Tesla owner has had to book their car into a garage and sit around for 3 hours while it updates.