Karl on Cars
Automotive News
October 6, 2009
Two 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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- Karl Brauer October 6, 2009, 3:00 AM
- Categories:
- Automotive News, Chevrolet, Domestic Manufacturers Problems/Challenges, GMC, Talk Back Tuesday
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- Buick LaCrosse Chevrolet Equinox
July 28, 2009
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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- Karl Brauer July 28, 2009, 6:00 AM
- Categories:
- Automotive News, Car Buying Advice, Fuel Efficiency, Talk Back Tuesday
- Technorati Tags:
- Cash For Clunkers, New Car Sales
June 16, 2009
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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- Karl Brauer June 16, 2009, 6:00 AM
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- Automotive News, Fuel Efficiency, Talk Back Tuesday
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- Gas Tax Fuel Efficiency CAFE
June 2, 2009
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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- Karl Brauer June 2, 2009, 6:00 AM
- Categories:
- Automotive News, Chrysler, Dodge, Domestic Manufacturers Problems/Challenges, Talk Back Tuesday
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- Fiat-Chrysler Merger Bankruptcy
May 26, 2009
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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- Karl Brauer May 26, 2009, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges, Talk Back Tuesday
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- Dead and Dying Cars
May 12, 2009
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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- Karl Brauer May 12, 2009, 6:00 AM
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- Automotive News, Domestic Manufacturers Problems/Challenges, Talk Back Tuesday
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- Chrysler GM Dealers Bankruptcy
May 5, 2009
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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- Karl Brauer May 5, 2009, 6:00 AM
- Categories:
- Automotive News, Chrysler, Domestic Manufacturers Problems/Challenges, Talk Back Tuesday
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- Chrysler Fiat Merger
May 2, 2009
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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- Karl Brauer May 2, 2009, 1:30 AM
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- Automotive News, Hyundai
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- Hyundai Interview BNN
April 7, 2009
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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- Karl Brauer April 7, 2009, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges, Talk Back Tuesday
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- New Car Sales Buying Incentive
March 31, 2009
It doesn't get much more turbulent in the automobile industry than the last 24 hours, and a little birdie told me there's plenty more coming in the next couple weeks, not to mention the next 24 hours...
But for now let's focus on what we know.
We know Rick Wagoner is gone. It doesn't matter if you agree or disagree with how he ran GM. It doesn't matter if you think his dismissal was prudent change or simple posturing (one guess as to what I think). The bottom line is he's viewed as the man at the wheel when GM steered into the sun, and the president's administration wanted a "fresh" approach.
We know Obama wasn't satisfied with either Chrysler or GM's viability plans and has asked for a "do over" from both. The president seems fired up by the idea of a Chrysler/Fiat merger (more fired up than he should be?), but he was nebulous about GM's next steps. It seems "go futher" and "work harder" on restructuring is the only concrete takeaway.
We know the president left open the concept of bankruptcy as a possible pathway to viability in his speech. After the speech GM's new CEO, Fritz Henderson, reiterated the bankruptcy option and spoke of likely government aid to expedite bankruptcy proceedings.
Finally, we know the government is now guaranteeing the warranties on all domestic automobiles. This is good because it means current and potential new domestic car owners can be comfortable knowing the government has backed up their vehicles (versus leaving them "out to dry" on warranty work).
Add these indisputable facts up and I think we all know something else: A GM bankruptcy is inevitable.
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- Karl Brauer March 31, 2009, 6:00 AM
- Categories:
- Automotive News, Buick, Cadillac, Chevrolet, Domestic Manufacturers Problems/Challenges, GMC, Hummer, Pontiac, Saturn, Talk Back Tuesday
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- GM Bankruptcy Automobile
March 10, 2009
Should General Motors go bankrupt? That's been the question of the day for the past four months (which, techncially, makes it the question of the quarter I suppose...).
The GM folks are loathe to use the "B" word. On a functional level they claim it will further depress an already depressed sales atmosphere while damaging the (already damaged, according to Lutz) brands. However, I further sense that on an emotional level they just don't want to go there. The word "bankruptcy" doesn't exactly inspire love or happiness, let alone employee, or consumer, confidence. If the government is willing to walk GM through a "bankruptcy-like" process without requiring the company to actually declare bankruptcy, why shouldn't GM do it?
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- Karl Brauer March 10, 2009, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges, Talk Back Tuesday
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- GM Bankruptcy Turnaround Government
March 3, 2009
As you read this the latest new car sales figures are rolling in from manufacturers, and the news isn't particularly bright. Car sales ticked up for the month of February compared to January, but in terms of the typical increase between these two months (usually around 15 percent more cars are sold in a given February than the preceeding Janaury) the figures fall well short of expectations.
Translation: New car sales remain in the tank.
Does this mean people have stopped buying cars altogether? Nope, they've just decided to chase maximum value for their car-buying dollar.
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- Karl Brauer March 3, 2009, 6:00 AM
- Categories:
- Automotive News, Car Buying Advice, Talk Back Tuesday
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- Used Car Sales New Value
January 27, 2009
I've been making fun of the theory of man-made global warming for over 15 years -- basically ever since I first heard the concept. I know it was dreamed up by various "scientists" as far back as the 1970s, but I didn't hear about it until around 1992. Ironically, I had just graduated college, where I'd taken a science class on the sun and its affects on the earth (magnetic fields, radiation, aurora borealis, etc.).
The class provided a solid understanding of just how puny the earth is when compared to the sun, and it explained with solid scientific evidence how even tiny shifts in solar activity can have a major impact on our planet. And, despite being the early 1990s, well after the creation of global warming theory, our instructor never once mentioned the concept of human activity impacting the global temparature. Maybe he wanted to avoid the mocking laughter that would have surely followed.
But times change, and it's clear man-made global warming is no longer a theory but a certified fait accompli. And the critical point of this blog entry is to finally explain the causes of man-made global warming.
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- Karl Brauer January 27, 2009, 6:00 AM
- Categories:
- Automotive News, Fuel Efficiency, Talk Back Tuesday
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- Global Warming Climate Change
January 6, 2009
I'm surprised (though I probably shouldn't be) when politicians recycle the same old, bad
ideas no matter how many times they are shouted down by common sense.
So here we ago again with the "brilliant" idea of crushing older cars to save the planet. Previously this theory was used to get "gross polluters" off the road. The idea was to give industry giants smog credits for every old car they crushed. If, for example, they gave someone $700 for an old car they would get the equivalent of several thousand dollars in credits against air pollution fines.
I first heard of this program when I was a bright-eyed editorial assistant at Hot Rod Magazine in the fall of 1994, and the project car they used to illuminate the program's stupidity was the Crusher Camaro. Basically, the Hot Rod staffers found a one-owner, all-original 1967 Camaro about to be driven into the crusher by an old guy who wanted the $700 without the hassle of selling it (it still ran fine, but he hardly ever drove it). They gave him the $700 instead and turned it into a tire-shredding street terror with a crate engine and bright yellow paint job.
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- Karl Brauer January 6, 2009, 6:00 AM
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- Automotive News, Talk Back Tuesday
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- Crushing Old Cars Dumb Idea Politicians
December 9, 2008
Seems like everyone is an automotive and/or economics expert these days. But I don't mind, as I remember when everyone was an anti-terrorist expert in the fall of 2001; just like everyone was a product-planning/fuel-efficiency expert in the spring and summer of this year.
Anyway, speaking as one who feels as much right to the "automotive expert" claim as the average American watching CSPAN (okay, I admit it, maybe I even feel a tad more justified in that claim), I'd like to run through the Four Fallacies of the Domestic Automaker Bailout I've seen bandied about over the past two weeks. Ready? Here we go:
Fallacy Number 1: "It's Not a Bailout, It's a Bridge Loan"
The domestic CEOs keep hammering on this point, so here's my response: Would you go out of business if you didn't get this money? Yes? Than it's a bailout (except possibly in Ford's case because they might not go under without the help).
Even if you pay the money back, on time and with interest, it's a bailout. That's the definition of "bailout" -- you take a business that is ready to sink (fail) and you bail it out (give it money to keep it from failing). Clear? Good.
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- Karl Brauer December 9, 2008, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges, Talk Back Tuesday
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- Domestic Automaker Bailout
November 25, 2008
I just read this New York Times article
about the financial problem enveloping the domestic automakers. It discusses many of the challenges facing them, all of which we've heard before (slowing sales, costly production, too many dealers and brands, etc.).
But the author also takes a close look at what bankruptcy would mean for GM and the other domestics. In short, "Bankruptcy sucks as a way to achieve real business resolution." As an example the story offers Delphi, a company 4 years into the process of bankruptcy with no clear end in sight. GM's size, and challenges, are far larger than Delphi's, and the complexities involved in using bankruptcy to solve GM's problems are difficult to even fathom.
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- Karl Brauer November 25, 2008, 6:00 AM
- Categories:
- Automotive News, Cadillac, Chevrolet, Domestic Manufacturers Problems/Challenges, Talk Back Tuesday
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- Domestic Automakers GM Bankrupt
November 11, 2008
By now we've all heard the news: domestic automaker X will be out of business by date Y unless they get Z amount of money PDQ.
It's a real alphabet soup of a problem, but as with various financial institutions over the last few months the question comes down to this: Should the domestic automakers benefit from a government (read: taxpayer) sponsored financial bailout, or should they be allowed to fail?The answer depends largely on what you think is worse, throwing potentially good money after bad at an industry steeped in questionable business skills over the past 30 years, or let hundreds of thousands of jobs vanish as the automotive industry experiences a tectonic shift.
For me the answer is easy: No taxpayer money should be handed over to these captains of industry...unless some very specific conditions are met.
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- Karl Brauer November 11, 2008, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges, Talk Back Tuesday
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- Talk Back Tuesday Domestic Automaker Bailout Fail
November 4, 2008
I guess there's some kind of election today, but I'm staying focused on what really matters -- the Automotive World. And the current buzz in the Automotive World is a possible GM/Chrysler merger and what it would mean for both companies, and the industry at large.
To keep things interesting I'm proposing a new role for each of you: CEO of GM.
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- Karl Brauer November 4, 2008, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges, Talk Back Tuesday
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- Talk Back Tuesday CEO GM Chrysler Merger
October 7, 2008
Let's talk about the topic that won't go away: Car Sales.
I was at a dealership on Saturday to do an interview for NBC Nightly news, and during the hour I was there (this was mid-day Saturday, remember) there were no customers on the lot. In fact, if it wasn't for the NBC camera crew and me, there would have been nobody on the lot at all.
We just published a story on AutoObserver that chronicles the current dealer crisis. In short, the combination of higher gas prices and financial uncertainty has buyers scrambling and car sales tumbling. Edmunds.com is now predicting 13.9 million new car sales for 2008, down from 16.1 million in 2007.
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- Karl Brauer October 7, 2008, 6:00 AM
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- Automotive News, Domestic Manufacturers Problems/Challenges
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- Car Sales
September 30, 2008
If you believe the recent reports from Chrysler and GM you might think we'll be free of our oil-powered economy in just a couple years.
GM just unveiled the Chevrolet Volt and says it will be selling them by "late 2010." Last week Chrysler made suspiciously similar claims, saying in effect it will be selling a purely electric vehicle in 2010. So far Ford hasn't joined the electric car parade, which may bode well or ill for the Blue Oval depending on your point-of-view.
So maybe that bothersome old "black gold" will be as valuable as VHS players in a couple years, and we'll be able to tell certain Middle East nations what they can do with it.
But I doubt it.
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- Karl Brauer September 30, 2008, 6:00 AM
- Categories:
- Automotive News, Fuel Efficiency, Future Vehicles, Hybrid Vehicles
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- Talk Back Tuesday Car of the Future
September 25, 2008
We just produced an article on one of my favorite subjects: Twinned Vehicles
.
I like this subject, and this article, because it highlights a topic I feel many consumers don't fully recognize. Sure, most of the people reading this blog know that a Buick Enclave is bascially a Chevrolet Traverse, which is really a GMC Acadia -- all of which are essentially re-bodied and re-badged Saturn Outlooks.
But I know for a fact that many automotive consumers don't understand the close ties between these four cars, or the dozens of other twinned/tripleted/quadrupled vehicles out there. For the person who really loves the Buick Enclave, but doesn't want to haggle on price or drive across town to have it serviced, knowing the Saturn dealership eight blocks away offers essentially the same vehicle is highly valuable information.
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- Karl Brauer September 25, 2008, 6:00 AM
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- Automotive News
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- Twinned Vehicles Badge Engineering
September 19, 2008
The short list of candidates for the 2009 North American Car and Truck of the Year
includes everything from the Audi A4 to the Volkswagen Tiguan.
I've driven both of those vehicles, along with most of the other 24 vehicles. I feel like we are in the middle of a transition period where, even within a single brand, you have vehicles that represent the past and the future.
For instance, the Honda Fit and Honda Pilot are both on the list, but I know which of those two feels more like an award-winning car in 2009 (hint: it's not the one that averages less than 20 mpg).
Some other intra-brand variations, such as the BMW 1 Series and X6, make my choice in voting easy. Once again, when I think BMW I think sporty and luxurious sedan. Yeah, I know the X5 has been around for a decade and contributed quite effectively to BMW's bottom line, but I still don't think of BMW as a crossover company. And if the X5 can't earn my enthusiasm, you don't want to hear what I think about the X6...
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- Karl Brauer September 19, 2008, 6:00 AM
- Categories:
- Automotive News, Vehicle Awards
- Technorati Tags:
- North American Car and Truck of the Year
September 5, 2008
I've gone through the lastest car sales numbers from August and I'd like to say it's a "mixed bag" or that things are "looking up" but, really, it's just plain painful.
Here are the lowlights? from the Big 6:
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- Karl Brauer September 5, 2008, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges
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- August Car Sales
August 20, 2008
(note: late blogging as a result of technical difficulties that prevented my normal blog schedule)
Today begins a new round of "Employee Pricing" at GM, an incentive program not used by The General since 2005.
As the "sell-by" date on 2008 models rapidly approaches every manufacturer is forced to get the old metal out before the new (2009) metal arrives. Except this time around even some 2009 models are on the "employee price" list as well, including the Cobalt, HHR, Vibe, G5 and CTS.
I just drove our long-term CTS last night for the first time in several weeks. The idea of getting a brand new, 2009 model at employee pricing seems like a pretty good deal to me.
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- Karl Brauer August 20, 2008, 12:00 PM
- Categories:
- Automotive News, Car Buying Advice, Domestic Manufacturers Problems/Challenges
- Technorati Tags:
- Cadillac CTS, GM Employee Pricing Incentive
August 12, 2008
For most of you I don't have to explain this obvious pattern -- but I'll explain it anyway.
Whether we're talking 2008 or 1978, our car-buying patterns, as they relate to fuel prices, have about as much variation as a teen slasher flick.
It goes something like this: Prices shoot up, people freak out, large vehicles and V8 engines are deemed verboten while economy cars and (more recently) hybrids are hotter than unreleased Brangelina wedding photos. Then, prices eventually drop (rarely to their previous levels, but always from their short-term highs), and/or people get used to the new first digit on gas station signs, and car-buying habits return to "normal" (if you can ever call U.S. car-buying habits normal).
Of course, every time this happens people proclaim, "Yeah, well, I'm not getting burned again! I'm buying something with good mileage right now and never looking back!" But long-term market analysis of the past 35 years proves this declaration to be largely false. And the latest shopping data from Edmunds.com users suggests we're already cycling back to our "bad" car-buying habits.
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- Karl Brauer August 12, 2008, 6:00 AM
- Categories:
- Automotive News, Fuel Efficiency, Hybrid Vehicles, Talk Back Tuesday
- Technorati Tags:
- Car Buying, Fuel Economy, Talk Back Tuesday
August 11, 2008
It's not that the car market is struggling that gets me, it's that the luxury
car market is in a tailspin.
Aren't these people supposed to be immune to economic downturn?
You can read more in this Dow Jones article, but according to the latest sales figures, which include both July and the first half of the year, many premium brands, from Lincoln to Lexus, are down by double-digit numbers.
The reason are many, and go beyond the turbulent stock market.
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- Karl Brauer August 11, 2008, 6:00 AM
- Categories:
- Automotive News, Fuel Efficiency
- Technorati Tags:
- Economic Downturn, Luxury Car Market
July 31, 2008
Full disclosure - I don't like leasing. Never have.
For starters, I don't like the term, which is just a marketing-friendly word for "renting." Can you imagine someone bragging about the "sweet, three-year car rental commitment" they just signed up for? But that's exactly what every three-year lease is.
And I really don't like the financial shell game it represents. Rather than spending the money it takes to own a vehicle, leasing hides fiscal irresponsibility in the promise of "low monthly payments." Payments, in fact, that almost always get people into cars they couldn't (or shouldn't) otherwise afford (another sign of poor fiscal responsibility).
Here's another way to look at it: What's the most financially responsible way to pay for your personal transportation? Buy a slightly used car (after someone else takes the bulk of the depreciation hit), drive it until the wheels fall off, and repeat.
What's the least financially responsible way to pay for your personal transportation? Buy a new car every three years, and repeatedly pay for the bulk of its depreciation. Actually, that's the second least responsible method. The most irresponsible method would be to rent a new car every three years and never have an ownership stake in the vehicle.
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- Karl Brauer July 31, 2008, 6:00 AM
- Categories:
- Automotive News, Car Buying Advice
- Technorati Tags:
- Car Leasing, Chrysler
June 24, 2008
You may have already heard this, but Ford is delaying the launch of the all-new F-150 by two months.
There's really no way to spin this, it's simply bad news. It's bad because they've spent plenty of money redesigning this truck, so any delay in selling it ultimately costs them money. It's bad because the F-150 has represented a guaranteed, fundamental level of income for Ford for decades. Now it doesn't (a lack of 2008 F-150 sales is the official reason Ford is giving for the 2009 model delay).
Finally, it's really bad (for Ford, and all the domestics) because it clearly reflects the hostile market for big, old-school, V8-powered vehicles. This news comes on the heels of GM stating they have postponed the GMT900 (Silverado, Tahoe) platform redesign "indefinitely." So far (and I say that with some trepidation...) the all-new 2009 Dodge Ram launch is still on schedule.
While these news reports aren't exactly earth-shattering, or unexpected, I find them interesting on a level missed by most news reports -- Trucks have gotten pretty damn good!
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- Karl Brauer June 24, 2008, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges, Fuel Efficiency, Talk Back Tuesday
June 18, 2008
The flight from large trucks and SUVs is undeniable, and we've got the figures to prove it.
If you check out this new AutoObserver story you can read all the gory details, but the upshot is pretty simple, people are fleeing from large trucks and SUVS at an unprecedented rate. The chart above shows what people are coming out of to buy a midsize car when trading in. Basically, people trading in a midsize sedan for another midsize sedan is down 19% compared to January and February of this year, but people trading in something larger than a midsize sedan to get a midsize sedan has skyrocketed. In other words, far more people are coming into this segment than were a few months ago, and most of the people coming in are coming from large and midsize SUVs.
There are plenty of other facts and figures in the article, including a clear uptick in used car purchases (people concerned about future economic issues and wanting to hang on to their money) and a sharp jump in people buying small cars with trade-ins less than four years old (people wanting a fuel-efficient car now versus waiting until their current car "wears out").
While this shift is expected in a world with fuel prices spiking, the sudden change -- and by such a large percentage of buyers -- is unprecedented. Remember, these figures aren't compared to April/May of last year, they are compared to January/February of this year.
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- Karl Brauer June 18, 2008, 6:00 AM
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- Automotive News, Fuel Efficiency
June 12, 2008
The automotive world as we know it has officially turned upside down. I've already mentioned a few May sales numbers in previous posts, but I've got the latest full download from our data guys and there's a solid Top 10 List of interesting points:
1. The Ford Focus outsold the F-150 in May, and is within10,000 units of F-150 year-to-date sales for 2008. Not sure how that reflects on the nine-year-old Focus, the four-year-old F-150 or the eight-month-old Sync technology, but probably mostly a reflection of The New Car Market we are living in.
2. The Honda Civic is within 2,000 year-to-date sales of the F-150, and it outsold Ford's perennial best seller by 20,000 units in May. The Civic will pass the F-150 in June and probably never look back in terms of the 2008 sales race. The bigger question: When (if ever) will the F-150 outsell the Civic again? Will the redesigned 2009 F-150 turn things around? Care to place your bets?
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- Karl Brauer June 12, 2008, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges, Fuel Efficiency, Hybrid Vehicles
June 9, 2008
By now the domestics have been fully tarred and feathered in the mainstream press for basing their business plan around large trucks and SUVs. For two decades they drank in the heavy body-on-frame profits while putting minimal investment into high quality
small cars. I won't beat that dead horse any further.
Toyota, on the other hand, has maintained a pretty wide product portfolio for the past decade. I've said several times Toyota deserves credit for keeping a full arsenal at the ready. Gas selling for cheap? Step up to one of our many V8-powered large SUVs or luxury cars. Gas prices up? Headlines screaming about man's destruction of fragile Mother Earth? Try our Echo/Yaris or Corolla or mpg-leading Prius.
Yes, I'm aware of the irony that within a year of Toyota launching a truly full-size truck (complete with a brand new, over-budget assembly plant in Texas) gas has hit record highs and big trucks are officially "out" in the average consumer's mind. Something tells me the big "T" will survive this bit of bad timing.
But the most interesting case study of all comes not from the truck-dependent domestics or Tundra-and-Prius-peddling Toyota, but from steadfast Honda. Like the Tortoise and the Hare fable, Honda has plugged along for the last 50 years in this country with a consistent attitude. "We'll make fuel-efficient, value-priced, highly dependable vehicles with a strong emphasis on leading-edge engineering."
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- Karl Brauer June 9, 2008, 6:00 AM
- Categories:
- Acura, Automotive News, Domestic Manufacturers Problems/Challenges, Fuel Efficiency, Honda, Toyota
May 30, 2008
Mark LaNeve, GM's Vice President of Vehicle Sales, stopped by the Edmunds.com offices yesterday and spoke with us about the state of the industry and how GM fits into it. Mark's a remarkably straightfoward guy that breaks the stereotype of the double-talking executive, which makes for far more interesting conversation than is typical with automotive VPs.
Mark touched on several important topics, including:
1. Gas Prices: "People used to think of gas money like they thought of lunch money or postage bills. It was costing them something every month, but not enough to keep track of. Now, everyone knows what they are paying in monthly fuel costs."
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- Karl Brauer May 30, 2008, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges
May 29, 2008
People calling for a $5-a-gallon gas tax to end America's Oil Addiction may get their way without one. As oil prices flirt with $140 a barrel and fuel prices creep past $4-a-gallon the sales of SUVs, minivans, trucks (full-size and
compact) have hit the wall.
Michelle Krebs just posted the latest sales analysis on Auto Observer, and it further confirms with hard evidence what most of us already knew -- Americans weren't buying SUVs because they needed them, and now they aren't buying them at all. If SUV-dependent automakers don't already have a "Plan B" in place and ready to go it may just be too late...
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- Karl Brauer May 29, 2008, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges, Fuel Efficiency, Hybrid Vehicles
May 20, 2008
You may have already heard this, but BMW's twin-turbocharged 3.0-liter engine took home the International Engine of the Year award for 2008. If you've experienced this powertrain you know that title is well and properly earned, as the 3.0-liter's combination of horsepower, torque and even fuel efficiency make it one of the best engines in history.
But that got me thinking: What are the best engines in the history of the automobile? There are no internationally recognized test parameters to answer this question, so it's basically a judgement call. With that said, here are the 10 engines I would place in the annals of "Best Engines of All Time."
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- Karl Brauer May 20, 2008, 6:00 AM
- Categories:
- Automotive News, BMW, Chevrolet, Chrysler, Ford, Honda, Nissan, Porsche, Vehicle Awards
May 9, 2008
Here's some non-news - car sales are in the toilet.
I know we're already a week into May, but I just got April's numbers from our data folks (my fault, not theirs) and it's not a pretty picture. Here's the basic rundown in all its badness:
April car sales were the worst since 1995, and 8% below March (usually sales pick up from March to April)
The Honda Accord was the best selling vehicle last month, better not only than Camry, but better than Ford F-150 and Chevy Silverado, too (the Silverado started the year in the #1 position, and the Chevy/Ford full-size trucks have outsold midsize sedans for years)
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- Karl Brauer May 9, 2008, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges
April 22, 2008
You may have already heard this, but there's a growing relationship between Chrysler and Nissan. For complete details, check out Michelle Krebs' excellent analysis on AutoObserver.com.
Like many automakers, Nissan and Chrysler are two companies with clearly-defined strengths and weaknesses. What wasn't so obvious to me, until hearing about the budding partnership and reading Michelle's article, is how perfectly these two entities line up and how much stronger they could be as a single unit. Recent history suggests that mergers on this scale are never as simple as they appear at first glance, and the last thing either automaker needs is another failed coupling.
But bottom line -- Cerberus Capital Management is a "show me the money" group of guys, and Carlos Ghosn has wanted a U.S. paring for awhile. It doesn't take a crystal ball to see where this might go, though for now both companies are merely talking about model-sharing plans. How far will these plans go? Let take a look at the obvious ones (all stolen from Michelle's article):
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- Karl Brauer April 22, 2008, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges, Talk Back Tuesday
April 4, 2008
The final numbers for March are in. The news isn't pretty, but that's not particularly surprising. Our data hounds have crunched the figures and added their trademark analysis to give them meaning. Here are the sales numbers for the "Big 6" automakers:
1. Chrysler LLC is down 16% so far this year, with Wrangler down 31%, Grand Cherokee down 25%, Ram down 25%, Town & Country down 7%, Compass down 12% and Durango down 37%. But the Avenger is up 63%, Sebring is up 45% and even the Caliber(!) is up 15%. Who knew?
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- Karl Brauer April 4, 2008, 6:00 AM
- Categories:
- Automotive News, Domestic Manufacturers Problems/Challenges
