Edmunds CarPool

Automotive News (43 Posts)

Karl on Cars: Chrysler's PT Cruiser Begs the Question -- Product or Profit?

Chrysler PT Cruiser.jpgLast Friday was the last day of production for Chrysler's one-time best seller, the PT Cruiser. The PT Cruiser debuted in the spring of 2000 as a 2001 model, and I remember seriously considering one as they were arriving on local dealer lots. What ultimately kept me from purchasing a PT was the dealer greed that had them charging between $3,000 and $10,000 over MSRP (for a vehicle that started at $16,000 and topped out around $22,000).

But this column isn't about my near-ownership experience with a PT Cruiser, it's about the rise and fall of one of Chrysler's most iconic and popular models in the company's 85-year history.

With over 1.3 million units sold, plus enough demand to charge thousands over MSRP during its debut and sufficient inspiration to launch multiple car clubs and Web sites dedicated to it, how could Chrysler let the PT Cruiser's grand beginnings end in a morass of decontented materials and rental car daily-rate specials? Was it a tragic (and all-too-common) case of brand equity mismanagement, or was it financial brilliance from a company eeking out profit where it could in an increasingly down market? Maybe both.

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Talk Back Tuesday: 2009 -- The Year We Cleared Our Automotive Dead Wood

Tombstone.jpgFire is an interesting phenomenon. It is the basis for all of man's technology and it's been keeping us warm for several thousand years. Yet an undeniably negative connotation surrounds the word because it is often associated with death and destruction. In truth, fire serves an important purpose, even in it's most destructive form. In nature a fire often clears an area of crowded, older trees to make room for younger, healthier saplings. There are even plants that thrive on fire, using the heat to release seeds for a burst of new growth.

As firestorms go, 2009 saw one of the most destructive infernos engulf the automotive industry since Karl Benz patented his first car in 1886. And we still don't know the full extent of this latest firestorm. Even as I write my blog entry the future of multiple manufacturers remains uncertain.

However, I would argue that much like the cyclical fires consuming old growth forests, the automotive carnage of 2009 isn't something to fear or lament but rather a natural and necessary component of industrial evolution.

Seriously, let's take a look at what we "lost" in 2009 and ask ourselves if the industry is really worse off than it was a year ago.

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Push the Blue Button to Follow Santa Via OnStar

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If you're on the road with the kids this Christmas Eve and in an OnStar-equipped GM vehicle, the telematics service will let you follow Santa Claus as he makes his annul one-night-only world tour. OnStar has teamed with the North American Aerospace Defense Command (NORAD), which has been tracking St. Nick since the 1950s, to make updates on the progress of Santa's sleigh.

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2011 Toyota Sienna First Drive

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Our staff has been saying for years that you can't beat a minivan for a family vehicle. In the past, those buying an SUV rather than a minivan gave up a lot of passenger space and cargo capacity in exchange for a cooler image.  With the current crop of larger three-row crossovers, the gap has been closed considerably, and as a result, minivans have been declining in popularity, with Ford and GM both pulling out of the segment.

That said, minivans still are the smart choice if maximum seating comfort and massive stuff-lugging versatility are must-haves.  And Toyota sees that thinning of the herd as an opportunity to grab more market share -- yes, the pie is smaller, but so is the number of those vying for a big slice.  Showing the motoring press its redesigned for 2011 Sienna, Toyota offered a little "same-old, same-old" (not a bad thing) and something of a shocker -- a sport-tuned minivan.  When you've finished laughing, please follow the jump.

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Karl on Cars Transitions to "Edmunds CarPool" Starting Tomorrow

Ford GT at Sunset.JPGIt is with mixed emotions I make this final blog entry for Karl on Cars. Starting tomorrow this blog (using the same Web address) will transform into "Edmunds CarPool" and feature input from across the entire Edmunds.com editorial staff.

I've been blogging under the Karl on Cars heading for over four years, though for the past year the majority of my "blog posts" have simply come from my Twitter feed. I know many readers weren't thrilled with that shift, and I fully admit it had limits (140 of them, to be exact).

That's why whatever disappointment I may have about Karl on Cars coming to an end it is more than eclipsed by the beginning of "Edmunds CarPool." This new blog will go back to at least one full-fledged post a day (often more) and will feature a vast array of commentary courtesy of the entire editorial staff. Getting more folks involved means more content, and not just basic text and photography but short video clips, near-real-time reporting and industry access as well.

Think of CarPool as the editorial staff's way of connecting directly with you, the reader. We'll throw out thoughts on everything from test cars passing through the test fleet to live updates during new model press events to car show commentary (starting with the L.A. Auto Show this week). You'll also hear our personal takes on industry news and trends, including my weekly Talk Back Tuesday post. We'll take pictures, shoot video and provide links to related content, both within the Edmunds properties and across the Web.

Of course we'll need to hear from you as well. We may have access to all these cool cars and interesting automotive people, but it will take feedback to maximize the fun. Got a question for Bob Lutz or Carlos Ghosn? Have a strong opinion regarding the design of the new Cadillac CTS Coupe? Is there a comparison test you'd particularly like to see Edmunds take on? That's why we created CarPool. Whenever possible we'll provide advance notice on content planning so you can provide direction on what you'd like to see and hear.

Yeah, this "look behind the curtain" can strike terror into the hearts of old-school publishers, but it's 2010 and the audience isn't just listening anymore, they're participating. Actually, that's where the name "CarPool" comes from. 

We're happy to drive, but we'll need you to supply the conversation. Pick you up tomorrow morning.

Karl Brauer, Editor in Chief, Edmunds.com

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Talk Back Tuesday: Can GM Win its "May the Best Car Win" Challenge? Almost...

  2010.buick.lacrosse.chevrolet.equinox.jpgTwo weeks ago I wrote about GM's "May the Best Car Win" ad campaign, in which Ed Whitacre states, "Car for car, when compared to the competition, we win."

I questioned the accuracy of that claim, but in these last two weeks I've driven two all-new GM products, the 2010 Buick LaCrosse and the 2010 Chevrolet Equinox.

My experiences have confirmed GM unequivocally is making better cars today than it was just a couple years ago. Are they making "...the best cars..." that will "win" in today's ultra competitive market? Well...

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Talk Back Tuesday: How Cash For Clunkers Should Have Worked

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All indications suggest quite a buzz around the government's just-launched Cash for Clunkers program. The program, also known as the Car Allowance Rebate System (CARS), is designed to increase new car sales while getting "gas guzzlers" off the road for cleaner air, reduced oil consumption and World Peace.

Okay, maybe I added that last item myself.

But the program, if you ask certain politicians, is certainly being hailed as the savior of all that's right in the automotive world. And one that's simultaneously reducing all that's wrong.

However, being the cynical/logical/critically analytical person that I am, I'm going to have to call P.C. Shenanigans on Cash for Clunkers, as I did in a CBS Evening News story from last Friday (shown above). I'm also going to describe how this program could/should have worked if the wise, well-grounded people ran the world. 

That may sound like a back-handed insult directed at politicians, so let me be crystal clear on this point: most government representatives are so painfully out-of-touch with the real world their legislative efforts create more problems then they solve (and there goes any mystery on my stance regarding national health care...).

The latest example of this long tradition includes Cash for Clunkers. What follows is a list of the program's problems and (more importantly) how they could have been avoided:

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Talk Back Tuesday: What's Your Opinion of a Gas Tax? Lunacy? Brilliance? Both?

  Gas Prices.jpg Mark your calendars kiddies, because this is the first (and very likely the last) time you'll ever hear me say this:

I'm supporting the idea of a new tax.

What could drive such blasphemy from the mouth of an avowed capitalist who thinks the government is best that governs least? Is it the ever-shrinking role of government in our present lives? The shrewd investment savvy of our government's spending habits (particulalry in my home state of California)? Did Obama call and say I was headed for "Rick Wagonerville" if I don't get with the program? 

No...but if he did he'd probably make it a condition of my continued employment (and survival) that I not report such conversations...

Seriously, I think a properly executed gas tax could actually work. But because "properly executed" and "tax" rarely have anything in common I'm not optimistic. Just look at the "Cash for Clunkers" bill for yet another example of government intervention gone completey awry. However, I'll offer my description of a functional gas tax (let's call it "Karl's Gas Tax") and embrace the likelihood it will never be properly implemented.

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Talk Back Tuesday: Fiat-Chrysler -- an automotive experiement we all get to pay for

Chapter11_chrysler02.jpg I know it just happened yesterday, but today's Talk Back Tuesday will not focus on GM going into bankruptcy. Instead, I'm going to focus on Chrysler coming out of bankruptcy, which it is on the brink of accomplishing.

Like most folks I've been suitably impressed by the apparent speed at which Chrysler processed its bankruptcy filing. Obama wanted it done in 30 days. Chrysler wanted it done in 30 days. Even Fiat wanted it done in 30 days. It appears everyone got what they wanted.

But it's really Fiat that made out in this deal. People keep saying Fiat "bought" Chrysler, but how much money did the Italian automaker pay for the Pentastar? That's right -- NOTHING!

Instead, Fiat was simply willing to take on the task of fixing Chrysler. Ironically, that made them the highest bidder in this sale, as every other automaker basically said "no thanks" and ran the other way.

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Talk Back Tuesday: Death...or Euthanasia? Cars I Won't Be Missing

2009 Cadillac XLR-V.jpg Like any automotive enthusiast I've been slightly nervous about the impending changes the industry will undergo in the coming months. Maybe slightly nervous don't go far enough...

How about thinly-veiled, heart-stopping panic? Yeah, that's accurate.

Anyone telling you "it's no big deal" or "seen it all before" is either very old or full or excrement. The level of automotive upheaval gripping this industry hasn't been seen for approximately 80 years (think 1930s, when dozens of big name automakers went belly-up in the midst of The Great Depression). Where and how will it all end? Well, anyone claiming to know can't even fall into the "old" category; they're simply spewing BS.

But we do have a growing list of dead and dying cars that simply won't survive the current crisis. We'll be presenting the list in both a feature article and an Edmunds Daily blog post this week (it numbers almost 50 models), but I've taken a close look at the list and come to a reassuring conclusion:

If natural selection helps strengthen a species, than this industry downturn is long overdue.

As such, I present the following dead and dying models I WON'T be missing: 

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Talk Back Tuesday: Are Car Dealers the Saviors or Slayers of Chrysler and GM?

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According to John McEleney, the National Automobile Dealers Association's (NADA) chairman, "Cutting dealers at this time would do absolutely nothing to make GM or Chrysler more viable."

When one considers the level of political clout commanded by the U.S. dealer body it shouldn't be surprising that they don't want to lose any of that power by losing dealers. And yet, I was still surprised by such a blatantly ridiculous statement. There's political posturing, and then there's just plain lying. If you're thinking the two have become one in the modern world...well, I won't argue the point.

But I would argue that if Obama wants to call out "speculators" as the evil doers of the Chrysler bankruptcy he might also consider turning that judgmental eye on the dealer groups forcing bankruptcy on Chrysler and GM.

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Talk Back Tuesday: Can a Chrysler/Fiat Merger Produce More Than Just Headlines?

Talkback_FiatDealer01 copy.jpg If you believe some of the headlines you might think the Chrysler/Fiat Merger is the best thing since relaxed credit standards and subprime home financing.

The supposed advantages of the merger are pretty obvious. Chrysler gets some much-needed small car entries that don't suck, and Fiat gets instant access to the Chrysler dealer network.

A no-lose proposition, right? Right?

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Hyundai displaces Nissan in "Big 6" Automaker Rankings in April

I was interviewed by the Canadian Business News Network on Hyundai's growth and success in the U.S. market in recent years. Here's the clip: http://watch.bnn.ca/headline/april-2009/headline-april-28-2009/#clip166531

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April 30th Fox Business News Interview: What Were Chrysler's Best Cars Ever?

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Talk Back Tuesday: How Would You "Fix" Slumping Car Sales?

DollarSign.jpg Over the past few weeks I've watched the headlines shift from "How Do We Save the Domestic Automakers?" to "How Do We Revive Car Sales?"

That's a positive sign, because it means even the brainiacs in government have finally realized funding a car company in a world of sub-10-million annual new car sales is like using a beach pail to bail out the Titanic. Put simply, the money flowing away from automakers in the form of depressed sales is far greater than what any government can afford to counter -- even if they themselves are using borrowed money and/or simply printing more bills as fast as they can (don't get me started on those aspects of the current "solution").

Yes people, there are only two ways to address the current car-buying shortfall: greatly increase sales or greatly decrease costs and capacity. The latter means shuttering factories, suppliers, dealers and (most assuredly) at least three or four major automotive corporations.

Yikes! Nobody likes that idea. Fine, let's focus on the former. Let's get new car sales back to a level where the current cadre of automakers (albeit after drastic cuts in size and producion costs) might be profitable.

How would you accomplish this? I've got an idea I'm certain would work, but it's far too rational, efficient and straightforward to garner support in the modern world. 

Oh, what the heck -- I'll tell you anyway.

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