This is one new problem GM is more than happy to discuss. Yesterday, officials told Inside Line news that demand for the Camaro has outstripped supply, forcing the company to work overtime at its Oshawa production plant.
According to GM, SS models account for about 70% of its current orders. Black is also the most popular color as 25% of all models are ordered that way. "We think this may stem from the SEMA Black Concept, which was the most popular GM car at SEMA last year," Chevrolet spokesman Adam Denison told Inside Line.
If Hyundai eventually fails in the U.S. market, it won't be for any lack of trying. The company that brought you the 100,000-mile warranty and job-loss protection is now taking the incentives game one step further with guaranteed gas.
Buy any new Hyundai (Genesis models excluded) and the company will lock in your gas at $1.49 for the first year of ownership. Owners will get a gas card that only charges them the set rate and Hyundai will pay the rest. We're guessing it'll go over a little better than Hummer's attempt last year.
Like most automakers, BMW maintains a design studio in Southern California. It's tucked away in the Los Angeles suburb of Newbury Park, so few in the area know it even exists. It's cranked out numerous car designs over the years and its former head, Adrian Van Hooydonk is now the head of BMW design in Germany.
Unlike most satellite design studios, however, BMW Designworks also does contract work for companies outside the automotive industry. Boats, planes, coffee makers, you name a consumer product and Designworks probably has a drawing of it on the walls somewhere. Most of those drawing are rarely seen, but BMW has just posted an in-depth tour of the facility that gives a pretty detailed look at how the studio functions.
There's some good insight into the world of design and how BMW sees its place within that world. If anything, the series might give you a little background on some of the company's more controversial designs and how they made it through the design process.
It doesn't open in the U.S. until tomorrow, but Transformers 2: Revenge of the Fallen is already an IMAX hit internationally. The movie grossed $510,000 over the weekend after playing on just 10 screens. Expect to see monster worldwide numbers in the coming weeks.
Last year, it looked like the European's bet on 50-state diesels was going to be a bust. As gas prices fell well below diesel, consumers saw little value in paying up for the privilege.
Now that the tables have turned, diesel sales are stating to pick up. Some Volkswagen dealers told Automotive News that they're having trouble keeping Jetta TDIs in stock and sales increased by more than 1,600 units from April to May.
Mercedes-Benz says its diesel sales are up as well, as nearly all of the models that offer diesel engines have shown an improvement in market share.
If there's any bad news to the recent equalization of diesel and gasoline prices, it's the inability of the Big Three to capitalize on it. Chrysler, Ford and GM all cut their light-duty diesel truck programs and the chances of them restarting those programs anytime soon are slim.
Yet another chapter in the "us vs them" battle will be waged in the California state assembly next week when a bill that would allow more extensive use of speed traps (AB 564) goes to a vote.
Such bills have been popping up all over the country as cities ravaged from the poor economy look for ways to increase revenue. It's essentially a local issue, but when it comes to cars, what happens in California often has a ripple affect across the country. Should this bill go through, expect to see other states follow suit.
If you live in California, do yourself, and your fellow drivers, a favor and tell Assemblyman Portantino, the bill's sponsor, what you think.
You cast your votes and we've posted them. The 2009 Readers' Most Wanted Awards are now live and the Nissan 370Z was your overall favorite. To see the rest of the winners along with comments that accompanied the votes, click below.
In a recent interview with the Washington Post, former GM Vice Chairman Bob Lutz reiterated his assertion that the demand for green vehicles is still relatively low.
"When you get out into the marketplace, it's probably just 5 percent of the public that desperately wants something environmentally sound and is willing to pay a premium for it," he said in the interview.
You want your engine to run forever? Well then, just pick yourself up some Valvoline motor oil and you're good to go until the 300,000 mile mark.
At least that's the guarantee the company is now offering to customers who religiously change their oil with Valvoline.
Now, of course, it's not quite that easy. Your car has to have less than 75,000 miles on it before you start and you have to show proof of your dedication along the way. There are probably a hundred other requirements for you to meet in order to have your vehicle "covered", but if you're looking for a little piece of mind, it's out there.
You know all those people up in arms about V8-powered SUVs? Well, they're being a bit disingenuous. You see, if they really cared so much about the environment they would be railing against ships too. But they don't, mostly because they don't see them. Out of sight, out of mind you know.
If they did pay more attention, they would realize that the average cargo ship burns fuel oil which is only slightly less toxic that roofing tar. According to a report in The Guardian, the average ship spews about 10.4M pounds of sulfur oxide gases in a year. In comparison, an average car driving 10,000 miles in a year emits a little less than one quarter pound of the same gas. So yeah, ships might be worth looking into if one is serious about reducing airbourne pollutants.
Probably. But if not, you can do something about it.
Most big media companies store your preferences, of course, but Google also gives you a chance to edit them on its Ad Preferences page.
That begs a question about what sort of log is created when you edit your preferences. Also unclear is Google's method for creating the categories in the first place. Then again, if you start fearing the Silicon Valley illuminati, you could always click "opt out."
Here's a preference list of one of your favorite Inside Line editors, who does not, in fact, own a Ford. Does "Automotive" top your list as well?
Automotive - Vehicle Brands - Ford Automotive - Vehicle Shopping Computers & Electronics Consumer Electronics Entertainment - Multimedia Content - Video Clips & Movie Downloads Entertainment - Music - Music Streams & Downloads Finance & Insurance - Investing Industries Lifestyles - Activism & Social Issues - Environmental Issues News & Current Events - Business News News & Current Events - News Networks
Blur is an arcade-style racing game with combat for PC, PS3 and Xbox 360. It's the work of Bizarre Creations (pubished by Activision) of Project Gotham Racing fame. And we know it isn't going to appeal to you GT/Forza diehards.
Except, that it has one very cool feature that's sorely missing on GT5 Prologue: a social network interface. This would allow you to create custom races that include only your friends, gaming site 1up.com reports, and if you wish, that don't allow the use of weapons or power-ups.
Blur also looks to have a decent amount of manufacturer licenses. In the E3 trailer, we picked out a Challenger, an Evo, a 1 Series, a Viper, a G8 and (wait, do I have cataracts?) a Ford Transit Connect.
The other "game" of note is Joy Ride for the Xbox 360. Trailer after the jump.
Compared to last year, May's sales numbers were miserable. Let's face it, when a 19% drop somehow looks good, there's still a problem.
We've come to expect such misery these days, but as AutoObserver points out, there are a few glimmers of hope in May's sales numbers.
- The Seasonally Adjusted Annual Rate (SAAR) is at its highest point of the year at 9.9 million.
- Most sales numbers beat analyst's expectations.
- The stock market is up and car sales typically rise with the markets. Consumer confidence is also up.
Hard to tell if this trend will continue at this point. It could be a result of bargain hunting or a little pent up demand. Either way, it's the kind of news we need at this point given how deep taxpayers are now entrenched in the business.
Inside Line interviewed Kazunori Yamauchi, father of the decade-old Gran Turismo franchise, in Los Angeles after the debut of the PSP Go handheld and Gran Turismo Mobile at E3, and the release of a Gran Turismo 5 trailer.He spoke to us through his interpreter, Takayuki Nushida, also of Polyphony Digital.
Yamauchi was conspicuously mum on Gran Turismo 5 details, but spoke in some detail about Gran Turismo Mobile, which goes on sale October 1. We briefly played a Japanese version of GT Mobile, and among its 35 tracks (60 variations), you'll find the Nurburgring Nordschleife and Laguna Seca -- and, we're told, all the other tracks from GT4.
IL: Any details on when Gran Turismo 5 will be released in the U.S.?
Yamauchi: It's not decided yet.
IL: But I couldn't help but notice the NASCAR and WRC licenses in the GT5 trailer you released today at E3. Why, in particular, did you decide to add NASCAR?
Yamauchi: NASCAR is a very North American motorsport. In Japan, we're very European-oriented in terms of racing, and NASCAR has always been sort of a far existence for us -- we don't know very much about it. I actually had a chance to watch NASCAR in person a while back, and the experience was very eye-opening. We just thought that having this amazing series, including it in the Gran Turismo world, we would have WRC on one side and that would be the European angle and you would have NASCAR for the North American perspective -- that would really widen the field of the game.
IL: I also noticed the damage to the STI in the trailer, so should I take that as a hint that this will be the first Gran Turismo game that shows visible damage when people crash into a wall?
Yamauchi: Yes.
IL: How difficult is it to incorporate that into a racing simulation?
Yamauchi: It's just the order of priority. You have to get the shape of the car and the physics completely perfect to call it a simulator to begin with. Deformation was just something that's lower on the list of priorities to do for a game.
IL: Are you concerned about Forza 3 beating GT5 to market?
Yamauchi: I don't really know that much about the other games that are out.
IL: Did you have any hesitation in doing a portable version of Gran Turismo given the limitations of portable gaming systems, particularly for driving games?
Yamauchi: There were a lot of limitations involved in creating a portable version. Gran Turismo is such a huge game. Gran Turismo has 10 years of history now, and of course there are people who have played it over the years from the first series to our newest, but I thought it would be good to have a new entry point for new users into the series, and that's where this PSP version is kind of placed.
If you've been logging a lot of couch time playing the Gran Turismo series over the last decade, you'll finally be able to leave the house come October 1. That's when Sony will release Gran Turismo Mobile, a launch title for the PSP Go, a lighter, more compact version of the PlayStation Portable.
Sony didn't show much gameplay video at this morning's E3 press conference, but for what it's worth, here's the trailer the company showed. The father of the Gran Turismo series, Kazunori Yamauchi, spoke this morning and maintained that Gran Turismo Mobile will not feel like your typical, scaled-down portable driving game. Rather, this is a "full" version of Gran Turismo that operates at 60 frames per second.
Gran Turismo Mobile has 800 cars and 35 tracks (with 60 layouts) -- a step up from the 6 tracks in GT5 Prologue you've no doubt been playing on your PS3. In addition to license/career and arcade modes, Mobile has an ad hoc mode, allowing you to race against 3 friends (in close physical proximity) via the PSP Go's wireless connection. You can also share and trade cars.
To save weight, the PSP Go doesn't have a disc drive (UMD drive) like a regular PSP, so you'll be downloading GT Mobile onto it. The Go has 16 GB of memory. It will retail at $249.99 -- quite a premium above the current PSP 3000, which is going for under 200 bucks right now.
And still no mention of a firm release date for the full version of Gran Turismo 5, despite yesterday's news on Forza 3.
No doubt you've played more than a few of the Need for Speed titles from Electronic Arts. Well, Need for Speed Shift is the juggernaut game developer's attempt at a more serious, simulation-type street racer. At E3 today, EA released this apparent gameplay clip of a street race through London. Watch from the cockpit.
Release date is this November for PS3, Xbox 360, PC and PSP.
Microsoft has released this video in conjunction with this morning's E3 press conference. Not a huge amount to see here in terms of gameplay, other than the aforementioned Audi R8 5.2 FSI V10. Ample face time for the Ford GT, too. And there's drifting -- courtesy of an E92 M3 and a 370Z.
In case you're living under a rock, the big video game convention, E3, is happening this week in Los Angeles. The Xbox-only Forza series of racing games have always lived in the shadow of Sony's more popular PlayStation-based Gran Turismo series -- this despite the fact that Forza and Forza 2 are actually really good games.
But this is never-say-die Microsoft we're talking about, and at this morning's press conference, the company announced that Forza Motorsport 3 for the Xbox 360 will include the most highly coveted Audi R8 of them all -- the R8 5.2 FSI V10. Audi says it has been working with Microsoft's in-house developer, Turn-10, to ensure the game car has all the right moves and sounds.
Equally important for the GT-vs-Forza wars, Forza 3 will let you wreck your car in full-on rollover crashes, something Turn-10's Dan Greenwalt demonstrated during today's press conference. Microsoft also announced Forza 3 will be released in October -- two months ahead of the anticipated holiday release for Gran Turismo 5.
To help build anticipation for the game, Microsoft and Audi announced the AXF-24 Audi-Forza Challenge. The top 9 ranked Forza 2 racers on Xbox Live will be invited to New York on June 13-14 to play Forza 3 in a 24-hour endurance race. Drivers will be divided into three teams, and the winning team gets an all-expenses-paid trip to the real 2010 24 Hours of Le Mans.
Microsoft has separately announced a contest in which you can design a skin for the Audi R8 5.2 FSI V10 and compete to win a wireless steering wheel.
For the first time in nearly two years, the average price of diesel fuel has fallen below regular gas. According to the Energy Information Administration (EIA), it's a "traditional" spring inversion that occurs in the U.S., but there's no doubt that BMW, Mercedes and Volkswagen will try to take advantage of the new pricing structure.
All three automakers took the plunge and introduced new diesel models in the last year, but apart from strong sales of Volkswagen's TDI cars, sales have been disappointing. As Bill Visnic points out on AutoObserver, several other manufacturers had diesel programs in the works, but shelved them when got prices plunged.
Now that prices have evened out, and stricter CAFE regulations are on the way, there are some incentives to get those programs moving again. Hard to tell if consumers would respnod at this point, but it seems like it's worth another try given refined and quiet modern diesel engines have become.
It was a surprise to Wall Street, and just about everybody else, when the Conference Board released its Consumer Confidence Index report for May this morning. Now registering 54.9, the index saw its biggest one month increase in six years and highest level since September.
The report sent the market soaring nearly 200 points, but more importantly it also contained news that the number of consumers expecting to buy a car in the next six months rose to its highest level since April 2008. The report also cautioned that home prices continue to decline and unemployment remains high.
That said, might the GM and Chrysler bailouts get done in time to take advantage of an uptick in the economy. Or are they just going to limp along while stronger competitor take advantage?
Bill Reinert, Toyota's U.S. national manager for advanced technology, told a National Academy of Sciences panel in Washington, D.C., Monday that the success of plug-in hybrids depends on their advantages over traditional hybrids.
"There is a great deal of variation on how current PHEVs perform in real-world conditions," Reinert said.
Although his statements sound like direct shots at cars like the Chevrolet Volt and Fisker Karma, Toyota is also testing plug-in variations of the Prius so he's probably speaking about their own conclusions.
Deliveries of the 2010 Chevrolet Camaro started last month and the demand is still running strong. Browsing completed Ebay auctions reveals plenty of buyers who just couldn't wait for their local dealer.
The 2SS RS shown above went for almost $7,000 over sticker two weeks ago. With over 100 Camaros currently up for sale in Ebay, however, we wonder how long it will continue to pull in such strong money.
You know it's serious when the White House lines up the CEOs of nearly every major car company in the U.S. for a press conference. The occasion was the announcement of new fuel efficiency rules that will reset the standards for cars and trucks going forward.
They're much tougher standards that the current rules. We're talking an average of 39mpg for cars and 30mpg for trucks and SUVs by 2016 for a combined average of 35.5mpg.
The White House acknowledges that costs will go up for cars and trucks, but claims that consumers will save at the pump in the long run. There are still many details to be worked out, but this appears to be the basic plan going forward. Think it will work?
A so called "Cash for Clunkers" bill is currently weaving its way through Congress, but as Bill Visnic points out on AutoObserver, its ability to stimulate car sales is still very much in question.
Why? Like so many other bills in Congrees, the Cash for Clunkers legisation is attemtping to please two different sides of the issue. In this case, it's the car industry and environmental groups. Not surprisingly, the goals conflict, and as Visnic points out, it could end up watering down the bill to the pont of complete ineffectiveness.
It's not as simple as you might think. Base price is one thing, but depreciation, insurance, gas costs factor in there too. Edmunds own John Giamalvo spoke with CNBC recently and profiled several cars that represent the best value in their segment.
The ol' hydrogen highway just got a little bit shorter. At a press conference today, Energy Secretary Stephen Chu announced a budget that slashes spending on hydrogen research by 59%.
"We asked ourselves, 'Is it likely in the next 10 or 15, 20 years that we will covert to a hydrogen car economy?' The answer, we felt, was 'no,'" Chu said in the briefing today.
It looked as though Chrysler avoided certain catastrophe yesterday when the U.S. government pushed through a deal with Fiat. The new partnership guarantees that Chrysler will receive a sizable chunk of government money to stay afloat, but it doesn't guarantee that Chrysler will get cars from Fiat that Americans will want to buy.
A study published in Whatcar? magazine in the U.K. shows that Fiat is far from popular in Britain. And as you may know, they actually seem to like small cars over there.
Fiat's latest cars are said to be considerably better than their lineup from just a few years ago, but from the looks of this study, they didn't have anywhere to go but up.
With the 2009 Q5, Audi has introduced its next-generation MMI (Multi-media Interface).
Although it has always been a good system, MMI now features some improvements that improve the setup's user friendliness. We take an in-depth look at the new features to see just how far Audi has come.
Think you had a rough Monday? Daimler's was worse.
It started the day by giving up completely on Chrysler. Daimler held on to 19.9 percent of Chrysler in hopes of salvaging its disastrous merger. Well, that didn't work out too well, so Daimler agreed to give up its remaining shares to Cerberus. Daimler also forgave $700M in loans it made to Chrysler and agreed to contribute $400M to Chrysler's pension plans over the next two years. Ouch.
Later in the day, Daimler announced that it had lost $1.86 billion in the first quarter of 2009. Daimler had already written off its stake in Chrysler, so those losses aren't even the result of the earlier agreement.
So there you have it, the Daimler merger with Chrysler is officially a disaster from start to finish. Nice idea, Juergen Schrempp, hope you're enjoying retirement.
According to a report in Automotive News, Toyota dealers are down to a 54-day supply of the Tundra pickup. That's down from a 76-day supply just a month earlier. Toyota has reduced production by 75 percent so far this year.
Some dealers said they're surprised how much the market has picked up lately, but they're worried they won't have enough inventory as Toyota transitions to the refreshed 2010 Tundra.
Toyota chief Bob Carter has told dealers that the San Antonio plant won't return to two-shift production anytime soon.
"It's a tough decision," Early Stewart, a dealer from Florida told AN. "Carter knows it's a problem in certain markets. The F-Series is eating Toyota's lunch because they have more production."
Honda has continually said that plug-in hybrids are an unnecessary step on the road to hydrogen-fueled vehicles.
Now it's changing its tune given the U.S. government's preference for plug-in hybrids as a short-term solution. Green Car Advisor has the full story on Honda's about face.
Earlier this week, Volkswagen announced that it would build its new minicar lineup in Slovakia starting in 2011. The new vehicles would be the production versions of the Up! minicars shown at the 2007 Frankfurt and Tokyo shows.
Today, Volkswagen of America told Inside Line News that this lineup was definitely headed to America. Which models and what they would be called are still being determined.
In a rousing Earth Day memo, GM Vice President of Environment, Energy and Safety, Beth Lowry, sought to reassure outsiders that GM is still committed to its environmental initiatives despite having little money to pay for them.
"I want to assure everyone that despite the current economic challenges and the fact that we are undergoing great changes to reinvent the company, resources for 'green' initiatives are being preserved," Lowry wrote.
Strangely absent was a progress report on the Chevrolet Volt although GM has said numerous times in the past that it was safe from the current cost cutting measures.
Massachusetts is considering two different plans to increase revenues and decrease gasoline usage throughout the state. Both plans have their opponents, but as Bill Visnic explains on AutoObserver, one plan has some merit, the other is quite ludicrous.
Volkswagen told Inside Line News that it's mulling over the possibility of importing the R Line Tiguan, a model that's already headed to European markets.
Other "R" models are under consideration for import as well. We think a R Line CC could make for a particularly fetching sedan.
It appears as though there's a bit of a Fiesta movement going on in Europe already. The bite size hatchback became Europe's best selling car in March with 52,805 units sold. Volkswagen's Golf had previously held that title.
That said, we're still waiting for the Fiesta here in the U.S. and it won't be headed our way anytime soon. Sure, Ford handed out 100 Euro-spec cars to obsessive Twitter tweakers so they could tell everybody how much they like the car that isn't costing them a dime, but actual customers will have to wait until next year to buy U.S. versions.
Nissan will unveil a pure electric car late next year that uses lithium-ion batteries to achieve a 100-mile range. Mark Perry, Nissan's Director of Product Strategy, told Green Car Advisor, "It is a dedicated all-new car, not the conversion of something we already offer. You need something that is different enough to let people know you are driving a special car."
Nissan is currently putting on a roadshow to showcase the electric drivetrain that will power the new EV. A Nissan Cube has been retrofitted with the drive system, but Nissan doesn't have any plans to offer such a setup.
Lexus has introduced a new navigation controller in the 2010 RX crossover, and it might be the most advanced human machine interface (HMI) controller yet. Called Lexus Remote Touch, it's the first controller to deviate from the rotary-type paradigm that we've seen in Audi MMI and BMW iDrive. Remote Touch instead mimics the computer mouse, and it's the first controller both to have user-adjustable haptic feedback and the first to have this feedback on two spatial axes.
If you've ever been to the Pebble Beach Concours in August, you already know that it can be a stuffy affair. Lots of perfect cars, perfect teeth and perfectly plump bank accounts. It's also perfectly boring for the most part.
In an attempt to bring a little less sophistication to the party, the folks behind the now infamous 24 Hours of LeMons have come up with their own late summer get together on the Monterey Peninsula.
It's appropriately called the Concours d'LeMons and founder Jay Lamm calls it a celebration of, "the oddball, mundane, and truly awful of the automotive world, Concours d'LeMons '09 honors aesthetic and technological underachievement through traditional categories such as Lowest-Quality American Car, Leakiest Brit Pile, and Crappiest Car from a Communist Country."
Sales of BMW's 335d sedan and xDrive 35d are off to a slow start. According to Edmunds.com data, the 335d comprises about 1% of current 3 Series sales while the xDrive 35d is only slightly better at roughly 7-8% of X5 sales.
According to a report in Automotive News, BMW only expects to sell about 3,000 diesel models total this year. BMW of North America CEO Jim O'Donnell told the industry trade paper that sales "haven't taken off" largely because the brand hasn't advertised them much.
Volkswagen is having much better luck with its Jetta TDI model. The diesel models currently make up 30% of sedan sales and 50% of Jetta wagon sales. The company is expecting similar results for its upcoming sixth-generation Golf TDI that will go on sale later this year.
#NYIAS Don't get too excited, it will be awhile before the Mitsubishi i MiEV arrives at U.S. dealerships ready for public sale. At today's press conference in New York, Mitsubishi Motors North America President and CEO Shinichi Kurihara announced that Mitsubishi fully intends to develop its i MiEV electric car for world markets including the United States. Fleet sales of the i MiEV are expected to start in Japan this summer.
The i MiEV slated for Japan is slightly smaller than the vehicle on hand at today's show. A wider track is the main difference. Sources on hand at the show said Mitsubishi is also considering a gasoline version of the vehicle for the U.S. Could be an interesting alternative to the Smart. -- Ed Hellwig, Lead Senior Editor, Inside Line
Yes ladies and gentlemen, Fast & Furious blew up this weekend, and we're not talking about pistons going through hoods here.
The fourth installment of the series proved irresistible as Fast & Furious pulled in an estimated $72.5 million over the weekend. Add in its international take and it likely topped $100 million.
Those numbers make Fast & Furious the biggest opening of the year, not to mention the biggest April opening of all time. This of course means that a fifth installment is virtually guaranteed.
In a typically long-winded tirade on his monstrously popular talk show, Rush Limbaugh railed against hybrids as nothing more than political pawns.
"The Ford and Honda hybrids due out this month are among dozens planned for the coming years as automakers try to meet new fuel-efficiency standards and please politicians overseeing the industry's multibillion-dollar bailout."
He went on to note that sales are weak, so clearly they are unpopular.
"Nobody's buying 'em," Limbaugh said. "Nobody wants them! The manufacturers are making them in droves to satisfy Obama! Sorry for yelling. Nobody wants them!"
As soon as the Ridemakerz press release came across our desk all we could think about was how this might be an opportunity to play with some model cars while still on the clock.
Mission accomplished. We started with the company's latest replica, the new 2010 Ford Mustang - somehow they'd managed to make the models look cartoonish but strikingly authentic at the same time. But this is no one size fits all toy.
This shouldn't come as a surprise to anybody who has ever seen Roger & Me, Michael Moore's scathing profile of General Motors in 1990s. Mr. Moore didn't see much to like at the top of GM's management hierarchy then, and not much has changed in the meantime.
Moore wrote on this website, "I simply can't believe it. This stunning, unprecedented action has left me speechless for the past two days. I keep saying, "Did Obama really fire the chairman of General Motors? The wealthiest and most powerful corporation of the 20th century? Can he do that? Really? Well, damn! What else can he do?!"
He finished with, "I await the President's next superhero move."
Ford has named Moray Callum (above right) as its new executive director for Ford Americas design. He replaces Peter Horbury (above left) who will head back to Volvo.
In case you're not familiar with Ford's bizarre job titles, Mr. Callum will be in charge of all of Ford's design activities in the western hemishpere. Prior to his promotion, the Scotsman presided over the styling of the latest Super Duty trucks. According to Ford, Callum will also guide the design of Mercury and Lincoln. Horbury, who was born in Britain, will oversee all of Volvo's design efforts.
The car is a lot more complicated electronic device than any iPod you can imagine. When you're behind the steering wheel, there's a lot of stuff on the menu: ventilation controls, audio entertainment options, navigation system, calibrations for the powertrain and chassis. It's no wonder that car designers have been trying to figure out what to do about operating all this stuff.
Designers have long recognized that a simple touch-panel display possesses superior Human Machine Interface (HMI) qualities, yet they continue to seek a more elegant solution than the customary computer screen jammed in the middle of the dashboard. This is what led BMW to bring us iDrive in 2001, followed subsequently by Audi's MMI and Mercedes-Benz's COMAND. Now even Lexus is headed down this route to the remote-control device, replacing its widely admired touch-panel display with its Remote Touch interface for the 2010 Lexus RX.
There's an interesting story behind the 19-inch sport package wheels on the 2009 Nissan 370Z. Randy Rodriguez, the Nissan designer who penned the original sketches for the 370Z (and who showed up to our Z-car party in his 240Z), owns an MV Agusta F4-750, you see. He stores it behind his desk at Nissan Design America in San Diego.
"A digital modeler showed me the eBay auction for a stripped MV's frame, engine and suspension," says Rodriguez. "This was in the morning that I first saw the ad, and then I blasted to Sacramento in a truck and by late evening it was parked beside my desk at work.
"Within 3 months I had it mostly complete and running. I got parts for it from all over the world.
"In doing that, I got really familiar with the various parts of the bike, and the 19-inch wheels for the 370Z were inspired by the triple clamp on the MV (and the one on the Ducati 999). I morphed it into the spoke, which became part of the wheel."
The MV isn't just an office sculpture, either. "I totally ride it hard -- when it's safe to do so of course," Rodriguez says.
Honda is no stranger to innovative and modestly heart-warming commercials. From its helpful sales people in blue shirts to its walk through history with the "Impossible Dream", it's had a good run of memorable clips.
This could be yet another. It's a promotion for the new 2010 Honda Insight and it looks quite unbelievable at first. It's real, sort of. Check out how they did it after the jump.
Do you hate having to own your car? You know, paying for gas, insurance, a place to park. It's all so exhausting. Wouldn't you just rather pay for a car as you need it? That's the idea behind Daimler's Car2Go program that will soon make its way to Austin, TX.
The idea is to have Smart cars spread throughout the city and when you need to go somewhere you just hop in, swipe your registration card and go. You can also reserve a car ahead of time with your cell phone. Rates are by the minute, hour or day, insurance included.
A pilot program in Ulm, Germany has already shown signs of interest. According to Robert Henrich, project manager at Daimler AG, "In just two weeks more than 500 customers had registered with car2go - a number we had not anticipated. Sometimes I could see from my office window how employees sprinted to the parking lot after work to get a car2go before they were all gone."
Yes, that sounds like a great way to end the workday.
Since 3,000 square feet of living space isn't enough of a draw these days, the building under construction at 200 Eleventh Ave in New York City is offering Sky Garages as an added enticement.
As the video after the jump shows, the Sky Garage is nothing more than an apartment-level garage space accessed by a glorified freight elevator. Still, it sure beats an underground lot, provided you don't drive an F-350 dually.
With a name like 2010 Cayenne GTS Porsche® Design Edition 3, how can you resist this $89,000 SUV?
Set for export to the U.S. in limited quantities, this gussied up Cayenne GTS features special paint, standard 21-inch SportPlus wheels and sport stripes. The interior gets black leather with contrasting red stitching and Alcantara inserts.
In other words, this special edition Cayenne is all about looking cool. Then again, if that's what you're after maybe it's best to start off with something other than a Cayenne.
Small cars were all the rage six months ago. Now dealers can't get them off their lots. Of course, they can't really get anything off their lots, but let's not mix up too many issues here.
Hard to tell who's right here. Sure, we probably don't need quite so many full-size SUVs, but does anybody really want to drive a compact hatchback? Maybe when they're 25 and poor, but what about when they're 35 and doing well for themselves?
Everyone always uses Europe as an example, but you know what rich people in Europe drive? S-Class sedans, and 7 Series sedans and A8s. And if they're really rich - Jeep Grand Cherokees. So yeah, they drive small cars when they have to, not because they really want to.
J.D. Power's latest dependability study, which surveys the first three years of ownership, says Buick and Jaguar owners experience the fewest problems. Lexus, Toyota and Mercury rounded out the top five.
The single most dependable model was the Lexus LS 430. Toyota had the most segment winners with five (Highlander, Prius, Sequoia, Solara and Tundra).
There were a few other interesting pieces of information contained in the report. The average age of a used vehicle trade-in has risen from 65 to 73 months in the last three years. J.D. Power also said that overall problems have decreased at a rate of 10% a year since the beginning of the study.
You probably already have WiFi in your house and at work, so why not complete the circle and get your car "connected", too? That's what Cadillac plans to offer on its CTS sedan starting in April.
The system is a $500 option and requires a $29-per-month subscription to maintain. It effectively turns the CTS into a wireless hotspot that delivers speeds up to 800Kbps according to Autonet Mobile which is supplying the system.
A new bill introduced in the House of Representatives yesterday would give consumers cash vouchers to purchase a new car if they turn in an old car that is at least eight-years old. The bill is designed to get older, less efficient cars off the road while at the same time spurring sales of new cars.
Of course, there are all sorts of conditions placed on the swap. The new car must be a 2009 model or newer and get better mileage than the car being turned in. It also has to cost less than $35,000, and if it's built in North America you get more than for buying an import.
In one of the bills more optimistic passages, it also allows for a $7,500 voucher for buying a plug-in hybrid that gets over 100mpg after the 2011 model year.
Most of these bills have been defeated in the past, in part thanks to lobbying from groups like SEMA that contend they unnecessarily target collectible cars. Doesn't seem like that's the case here, but rest assured there will be plenty of opposition when it goes to a vote.
No big surprise here. As gas prices go down, so do sales of hybrids. The L.A. Times issued this report today, but our own Green Car Advisor has been watching this trend for months.
Makes for an interesting side note to some recent remarks by a couple titans of the auto industry. Alan Mulally, CEO of Ford, noted in a recent speech that low gas prices push American consumers to larger vehicles. Mike Jackson, CEO of AutoNation, was a little more straightforward, calling for a higher national gas tax to push consumers toward more fuel efficient cars.
Jackson is probably right, but no politician will ever vote for it. Any other suggestions?
We promise this will be the last Chevrolet Camaro post for at least...a day or so.
Figured you might want to check out the Camaro configurator on Chevrolet's official website. It's one of the better such devices as it gives you a rotatable view of the car that changes as you add and remove options.
We like the look of this base LS with the heritage wheels and side stripes. Not bad for $23,505
The Fast and the Furious series is admittedly light on plot lines and believable acting, so it's up to the cars to carry it along. From turbocharged imports to blown American muscle cars, it's an ever-changing mix that makes up for all the cheesy one liners and Vin Diesel close ups.
The latest installment is called simply Fast & Furious and contributor John Pearley Huffman went behind the scenes to chronicle nearly every noteworthy car and truck features in the movie. Could this be the best F & F lineup ever? Maybe. Will it make for a good movie? Uh, maybe.
It doesn't look like much sitting in a glass dish, but this new battery material developed by researchers at MIT could revolutionize electric automobiles.
We won't get into the science behind it (mainly because we didn't graduate from MIT), but the end result is drastically reduced charging times for Lithium-Ion batteries. We're talking minutes instead of hours here, an improvement that would make the prospect of all-electric cars that much more viable.
It's just a stereotype, a means of giving men a false send of competency behind the wheel.
There are just as many examples of poor driving by ham-handed men as women, but we haven't trolled YouTube long enough to find them all. Until we do, enjoy this entertaining compilation of women at their worst.
Yes, you read that right. It's called G-Oil and according to the American Petroleum Institute (API) the new 5W-30 motor oil made from animal fat is just as good at keeping your engine running as a bottle of Pennzoil.
According to Green Earth Technologies, G-Oil is manufactured from fat from American-bred livestock and boasts that it takes, "three barrels of crude oil to make one barrel of motor oil, but it only takes one barrel of animal fat to produce one barrel of G-Oil."
Most concepts from Rinspeed are nothing more than that -- concepts. No real production value of any kind, just a designer throwing stuff out there to see what sticks in people's minds. The Rinspeed E2 is about as practical a car as you're ever going to see from the Swiss design house.
Like every other automaker on the planet, Rinspeed wanted to pretend like it cares about being environmentally friendly. The solution? A two-mode Fiat 500 more or less.
Yup, in "Highway" mode it produces 160 hp which "transforms the Italian flea into a venerable hornet," Rinspeed says. In that mode, fuel consumption is 7 liters per 100 kilometers.
Then there's "Commuter" mode which drops the horsepower down to 60 hp while fuel consumption drops to just 4 liters per 100 kilometers.
Sounds great. Now how often do you think drivers would choose Commuter mode? Uh yeah.
Lotus is using the 2009 Geneva Auto Show to showcase a new variable-compression engine it calls the "Omnivore." Designed to run on alcohol-based fuels as well as gasoline, the single-cylinder concept engine uses direct injection and a two-stroke operating cycle to maximize its efficiency.
An adjustable puck at the top of the combustion chamber is used to vary the compression and according to Geraint Castleton-White, Head of Powertrain at Lotus Engineering, the Omnivore has potential as a four-stoke, production engine.
"The absence of poppet valves in two-stroke engines makes the incorporation of a variable compression ratio system relatively straightforward. Our research into these systems on four-stroke engines has led us to the conclusion that while thermodynamically it is a desirable technology to incorporate, practically it isvery difficult, particularly taking into consideration production feasibility. This two-stroke engine could solve these practical difficulties and simultaneously permits a much larger range of compression ratio adjustment, with the potential to perform at a much higher efficiency when running on renewable fuels," according to Castle-White.
Thomas Friedman has won three Pulitzers and has a steady job writing columns for the New York Times. Clearly, he is no intellectual lightweight, but his columns don't always support that notion.
His most recent work is typical in its praise of green energy and condemnation of GM. In Friedman's eyes, GM is a loser that doesn't deserve our tax dollars. Instead we should be handing that money to startups in the green energy space.
"I've been traveling all across the country on a book tour, and every evening I return to my hotel with my pockets full of business cards from inventors in clean energy. Our country is still bursting with innovators looking for capital. So, let's make sure all the losers clamoring for help don't drown out the potential winners who could lift us out of this," Friedman wrote.
Well, that may be true, but Mr. Friedman should not forget there are also hundreds of like-minded folks who work for GM and Chrysler and Ford. Leave those companies to die and we'll be stifling the very innovation that Friedman finds so invigorating.
Green energy is promising and all, but in the meantime we still need cars. And not $100,000 electric cars, real cars, that real people can afford and use everyday. You know, the kind the Big Three make.
Maybe you've heard of the upcoming Ford Fiesta. It's what's known as a "B" segment car, which is a size smaller than anything Ford currently sells in the U.S. Such cars are typically economical and inexpensive, perfect for the young and hip Ford figures.
So in order to remind Millennials that the Fiesta is indeed fun and cool, and not just cheap and small, Ford is going to give 100 Fiestas away for free. Well, actually it's just a loan and the "agents" as Ford is calling them must chronicle their experiences on video. And who are these agents?
"We intend to put the Fiesta into the hands of really awesome, socially vibrant people," Fiesta Brand Manager Sam De La Garza told AutoObserver in an interview Thursday.
To help sort through the awesomeness, Ford is asking candidates to post videos on YouTube detailing their uh...vibrancy. As you might expect, the result vary greatly.
With sponsorship money getting tight and manufacturer support looking more questionable by the week, NASCAR needs to do something drastic to maintain its popularity.
Here's one idea: Have the domestics switch to Camaros, Challengers and Mustangs instead of their current crop of "sedans".
Everyone knows that stock cars have drifted away from their production roots, so why not make them a little bit more like real cars?
Chris Bangle, the Ohio-born, beard-sportin' Chief of Design at BMW, has resigned according to a report in Automotive News. Mr. Bangle is widely known for controversial designs that he labeled progressive and revolutionary. Others often used labels like ugly and misshapen.
According to the report, Bangle is leaving to pursue interests outside the automotive industry. Adrian van Hooydonk, the current number two in BMW's design department, will succeed Bangle. Automotive News
Since you have no doubt already seen all the relevant Super Car ads seven times over, we won't bother going over them spot by spot.
If you're really that into it though, AdAge has a tidy little summary on its site complete with ratings, commentary and the names of the ad agencies responsible for the spots.
They didn't seem to like the car ads much. We can't blame them, although the Hyundai Genesis Coupe ad was hard not to like.
Here in Los Angeles, the only broadcast radio station worth listening to just went off the air. Indie 103.1 played tons of cool new music and featured DJs that were actually, brace yourself, into and knowlegable about music - shocking I know. Of course if you REALLY want to hear Panic! at the Crapsco or even more Jay-Zzzzz, you're still in luck. Plenty of commerical laden Top 40 stations crank that stuff out like it's, well like it's good. But don't rush out and buy that 5 year Sirius subscription pack just yet.
In case you missed it yesterday, President Obama told the EPA that it should reconsider California's request to regulate its own emissions standards. The EPA was also told to finalize federal fuel mileage requirements that will phase in starting in 2016. The decisions were hailed as forward thinking moves that will reduce our dependence on foreign oil, but there was little talk of how the new standards would be met.
It won't be easy. The Federal standard would require automakers to achieve a fleet wide average of 35mpg just six model years from now instead of 2020. To put that into perspective, Honda has one of the most fuel efficient lineups in the business yet it only averages 31.3mpg according to the most recent NHTSA statistics, and that's without using the new EPA numbers when calculating its truck fleet efficiency. An AOL Autos report claims the number is considerably lower, around 24mpg.
Clearly, getting to 35mpg is going to take some serious changes, so the question is pretty simple: What sacrifices would you be willing to put up with in order to meet the government's stricter standards?
Less power? Higher costs? Fewer features? Smaller size? It's all on the table and whether you like it or not the changes are on the way.
You may have already seen the sales totals for December, and 2008 as a whole. If not, here's a summary: not good. For a more detailed look, check out the industry wide 2008 sales analysis over at AutoObserver.
We assembled something a little different though. Instead of assessing the big picture, we looked at the sales numbers for individual models. Which new models flopped, which old models recovered, that sort of thing. Some of the results we expected, others were a little more eye opening. See for yourself after the jump.
You've probably seen it a hundred times in the last year. Some talking head on TV saying that if automakers only made more fuel efficient cars, the public would buy them. Really? The 2008 sales numbers are in, and the draw of fuel efficiency doesn't seem to be holding up in the face of lower gas prices.
Our own Green Car Advisor, John O'Dell, looked through the final sales numbers for hybrids in 2008 and it was clear that their green sheen had definitely worn thin.
The addition of a full LED lighting system to the Audi R8 5.2 might not seem like big news, but it does represent a major shift in technology that could radically shift future car designs. It's one of those technologies that's been promised for a long time and is only now making its way into production.
I'll make this short and sweet: As of the first of the year Ed Helwig will be taking over Straightline.
I have to say this has been a great ride. From the moment Inside Line Editorial Director, Kevin Smith; and Edmunds.com Executive Director - Community Operations, Sylvia Marino; asked me if I would be interested in managing this new blog they were setting up called Straightline three-plus years ago to this very day, it's been an absolute hoot. I busted my butt here, putting in far more time than I was being compensated for; they knew that. I also created Straightline artwork as needed, thereby not burdening the Edmunds.com art department; they knew that too. I also loved the fact that I was pretty much left alone to post whatever I wanted, so long as there was a vehicular connection of some sort. Oh every now and then I would get topic suggestions from various Inside Line editors--but very rarely did I ever receive any criticism. Yep, it was pretty much my baby, and I loved that.
Finally I'm going to miss you guys. Straightline exists first and foremost for the readers. I'm going to miss bringing a wide range of auto-related news to this site daily. I hope what I delivered opened a few eyes just a bit wider than before. If nothing else, it made for some interesting discussions, for sure.
So, I'm outta here. Well, sort of, maybe... Ed knows where I am. If he needs any help, he'll contact me, I'm sure. Plus, I'll still be commenting from time-to-time.
According to the UK's Car magazine, BMW will be dropping the M Division straight 6 engine. Widely regarded as one of the all-time great engines, it will be sorely missed. Car doesn't get into as to why this is occurring, but I'm sure it's emission and/or gas mileage related.
For lovers of Bimmer inline sixes, they will remain; just not in its most macho form.
This past year Chrysler, in what was considered a real coup, snatched two big-time auto executives, one from Lexus and the other from GM. Now, less than a year later, they are gone or are about to be gone.
Deborah Meyer had been VP of marketing for Lexus, and came to Chrysler LLC as their new chief marketing officer. Phil Murtaugh was one of the key players at GM in turning their China operations into such a success. He was to do the same for Chrysler, that being to jump-start their China relationship with Chery. Well, the Dodge/Chery deal went up in smoke thanks to the global financial fiasco. Now Murtaugh too is going up in smoke, as he will depart before next year begins. Same with Meyer, as she too "has left the building."
Not a good sign for Chrysler; wonder how long Jim Press, formerly of Toyota, will hang around?
Well, so do I. Mr. Prez-Elect, can I get a bailout too? Oh, pretty, pretty please...
So when is this "I want a bailout" madness going to end?
The Renewable Fuels Association has recently put in a request for $1 billion for financial aid to help struggling ethanol producers so they can finance current operations. In addition, the RFA -- the ethanol industry's lobby -- has also suggested to the incoming administration that it create a $50-billion federal loan guarantee program to finance investment in the ethanol producers' expansion. Give me a break.
Just as suppliers are having a tough time in this depressed auto industry, so are recent transportation design graduates. Once a promising career, now many recent grads are finding it very tough out there, as car companies are simply not hiring.
"There's no question that this is a hard time, and there's no indication it's going to get better in the near term," said Larry Erickson, a former designer at GM and Ford and now chairman of the transportation design department at the College for Creative Studies in Detroit, which rivals the Art Center in prestige.
What was once thought "unthinkable," that being Toyota cutting factory workers, many come to pass. In the 24 years that Toyota has been building cars here, they have never had to let anyone go. That may change as their sales continue to slump.
Jim Wiseman, vice president of external affairs for Toyota's North American production unit says this is a real possibility.
"We wouldn't anticipate it getting to that point, but we never say never," Wiseman said. Toyota has 30,000 North American employees spread among 14 assembly, engine and parts plants, and vehicles built in the region made up 56 percent of U.S. sales through November.
If this happens, it will be interesting to see the response from the UAW, as these are all non-union workers at Toyota (not that by being unionized would have made any difference).
Mark this as just one more victim of the worldwide financial crisis, as Land Rover has announced the cancellation of their G4 Challenge. Instead, Land Rover plans to focus more on new product launches.
"Given the severity of the global economic downturn and trading conditions, we need to make some tough decisions and that means prioritizing our budgets on new product launches. We are disappointed for the competitors who have shown so much commitment and put tremendous effort into succeeding as representatives of their nation. We have and will continue to take swift and decisive actions for the benefit of the business; unfortunately that means the Land Rover G4 Challenge has to come to an early close," said Phil Popham, Managing Director Land Rover.
Despite the just announced bailout loan, a Chrysler LLC disassembly is pretty much a given. This is no surprise. In fact, Straightline reported on that possibility recently (Government aid won't save Chysler). Now AutoObserver has more on that possibility.
The Bush team apparently have rejected the idea of a managed bankruptcy for the auto industry. Instead they will offer a $17.4 billion loan package that will include many strings and tough restructuring targets to meet. $13.4 billion will be made available immediately, with the remaining $4 billion to be made available in February.The money will come from the $700 billion in Trouble Asset Relief Program (TARP).
If not enough progress has been made by March 31, the government can call back the loan.
No surprise here. December auto sales are expected to be miserable.
"Despite the unit sales increase from November, December's expected 9.8 million SAAR will be the lowest of the year," said Jesse Toprak, Edmunds.com's executive director of Industry Analysis. "As questions about the economy remain unanswered, many consumers are reluctant to respond to the incredibly generous deals available on new cars."
This is not a surprise, given everything that's going on these days. Roger Penske, who leads the Detroit Grand Prix event (scheduled for Sept. 4-6) as chairman of the Downtown Detroit Partnership, informed the Indy Racing League and American Le Mans Series that the event will not be held in 2009.
"Obviously, it's something we're disappointed in, but as good businessmen we've got to make a call," Penske told AutoWeek. "We have the assets to continue on, but there's no reason at this point to have an event that wouldn't be first-class.
"This is a real economic time of distress for everyone and we couldn't sit here and count on a lot of things happening that we know weren't going to happen, especially knowing we live in such a distressed area with unemployment and all the other things going on. We had to make the decision."
Well, yeah, it does in some cases; like, maybe 5 percent of all crashes.
That's what the latest study from NHTSA showed. This was a study that examined 5,400 crashes over a three-year period. It did indicate that accidents involving excessive speed can and does cause serious injury, but that the death rate was really pretty small.
So what was the cause of most accidents? Inattention.
Finally there are some signs that China is beginning to "get it." Yes, China is slowing coming to realize that dirty air is actually hurting them, and that they are now taking steps to clean up their environment, which includes cleaning up their cars.
Um... could it be due to the auto industry being in the tank?
Whatever the reason, NBC appears to be punting the U.S. version of Top Gear out of the stadium. So far no official word has come from the Land of the Peacock. Word has that the TV show producers are hoping some cable station will pick it up.
WorldCarFans.com is reporting that Fiat & PSA/Peugeot-Citroen are about to merge. The story, which apparently originated in Italy, states the reason for the merger is to try and survive the global financial crisis. It's that simple: merge or die.
So here we have one more example of just how far-reaching this economic debacle is. If this merger does come about, it would create the fourth largest automaker in the world, rivaling VW and Renault-Nissan in scale.
Got your holiday shopping over with? If so here are a few automotive items to tide you over until Monday:
How about a purpose-built police car? No, I'm not talking about some severe-service vehicle coming from the military-oriented Oshkosh skunkworks, but rather a police car sedan that's not based on any existing car platform.
"The study confirmed with some rigor what many people have already felt -- that cars seem to have consistent personality traits associated with them, and that this is similar to the way people perceive facial expressions," said Dennis Slice, an associate professor in Florida State's Department of Scientific Computing. "The most unique aspect of the study was that we were able to quantitatively link the perception of cars to aspects of their physical structure in a way that allows us to generate a car that would project, say, aggression, anger or masculinity or the opposite traits."
Late last night the Senate, lead by Republicans, flushed the auto aid package down the toilet. Now it's up to the president-lame duck to act. Will Bush tap into funds slated for the Wall Street mess to help the faltering auto industry? Will some unknown-to-this-point hero step up to the plate and offer aid?
Nobody knows. Bankruptcy lawyers will likely be happy, but other than that group, this will be one holiday season to forget. One more thing: If you think the Senate screwed up here, contact the White House and let them know your feelings--NOW! It's that important.
Yep, it's that time of the year again. Time to gather some holiday gear for your favorite gearhead. Thanks to PickupTrucks.com, we have some holiday hitch goodies for those pickup and SUV owners to consider. I rather like the one pictured above.
Chrysler can not be saved, even with the proposed government financial aid. That's what CSM Worldwide forecasters say.
Chrysler "doesn't really have the scale, in most vehicle lines, required to survive in this market," so says Michael Robinet, CSM vice president of global vehicle forecasts.
"We think only unique Chrysler platforms will survive," Robinet said, citing the Jeep Wrangler and minivans. There could be a buyer for Dodge Ram.
CSM officials didn't see bankruptcy as the answer, but it may come to that. The result would be the same: dispersement of its assets, probably to more than one buyer. Congress' move to put Cerberus on the hook if Chrysler fails to live up to conditions of a loan could expedite the automaker's liquidation upon failure to find a buyer.
People who cruise in the left lane without regard for their speed or the number of cars piled up behind them could find themselves pulling over to the right for the police. A story on MSN Money reports that authorities are starting to crack down on "left lane campers" with fines as high as $124, and that such a ticket could also cause an ironic insurance spike for slowpokes.
In what could be the first indication that the Mercury brand is about disappear, Ford has confirmed to Inside Line that the Sable will axed this spring.
As you know the Sable, like all Mercury models, is merely a clone of some other existing Ford model. Sales are down 21 percent this year, which is the reason for its dismissal, so says a Ford spokesman.
The UAW has agreed to give up the oft-criticized (by everyone other than the UAW) jobs bank. This was a "perk" for laid off UAW workers, that would allow them to be paid up to 95 percent of their wages and benefits. This program symbolized to many the stereotype of the overpaid and underworked UAW factory workers.
In addition to suspending the jobs bank, the union will help the automakers' cash flow by deferring required payments into the health care trust fund, called voluntary employee beneficiary associations, or VEBAs.
While many, myself included, thought it would be announced that Pontiac would disappear, that apparently is not the case. GM announced yesterday that, in their restructuring, Pontiac would become a niche brand. Mark Phelan of the Detroit Free Press, agrees. Might the General and Phelan be correct?
When was the last time that you saw Ford having a better month than either Toyota or Honda, at least in terms of sales loss percentages?
"I've been in the industry nearly 28 years and never have seen anything even remotely close to this," states Mark LaNeve, GM's North American vice president of sales. "It's breathtaking."
It just gets uglier every month, and one has to wonder how much worse will it get? Oh wait... Domestic Motors and Congress have yet to do their second Doe-See-Doe. It could get much worse folks...
If you think that our domestic auto industries problems are a uniquely "American" problem, think again. Failing automakers are a global problem, as is illustrated by the above graphic from The Detroit News.
Wendelin Wiedeking, chief executive of Porsche, said it could be only a matter of time before hedge funds took majority control of one of the US car manufacturers that had inflicted damage on themselves with ruinous discounts and hugely subsidised leasing rates. Cerberus, who owns Chrysler, is a hedge fund; so we know what that means...
Wiedeking also stated at Porsche's annual press conference: "We need banks to give credit, not just talk about credit ratings but start real actual lending to companies. These rules are choking us today.
"Stabilisation of the financial system has to take place rather than banks shifting hundreds of billions of euros to the European Central Bank to earn interest. They should be injecting money so healthy companies survive."
Tuesday, December 2 will be D-Day for Detroit, as it could Determine their future, or lack-there-of, of the Detroit automakers.
Will their be enough meat on the plate that Domestic Motors will be serving up to Congress for them to Digest favorably? Will their restructuring plan for the auto industry be enough to convince the lawmakers that the big Detroit Three are indeed worth worth Defending with a financial Deal?
If the reports are true, Mercedes-Benz will be dropping their V12 engine. Pressure from environmental groups, tougher emission regulations, and the fact that most MB cars are no longer meant to accommodate a long engine like a V12, has forced Mercedes to re-think as to whether they need that engine. The answer is apparently no. So expect future premium Benz models to be fitted with twin-turbo V8 powerplants instead.
At some point you're gonna croak. It happens to everyone, right? Now instead of being placed in a traditional memorial park, or in an urn on some family member's hearth, race car fans can have their ashes scattered across the Circuit de Catalunya, which is near Barcelona, Spain.
Yep, for the price of about $1,950, and a $65 annual maintenance fee, you too can be run over by race cars and race bikes presumably forever.
It was a friendly split, but a split nonetheless. Tiger Woods, a 9-year spokesman for Buick, will end his relationship with Buick as of the end of the year. The deal was worth about $8 million a year to Woods. This is just one more signal of how bad things are in Detroit.
Surprised? You thought the Yugo was long dead and buried? Not so, as these East-European 4-wheeled tin cans have been quietly in production up until last Thursday.
In the U.S. the Yugo is best remembered as being the Euro-equivalent to the Edsel or Aztek, as it was most often on the receiving end of barroom jokes, some of which are:
> Why does a Yugo have a defroster on the rear window? To keep your hands warm while you push it.
> What do you call a Yugo's shock absorbers? Passengers.
> The new Yugo has an air bag. Before an accident, start pumping real fast.
> How do you double the value of a Yugo? Fill the gas tank!
> What do you call a Yugo at the top of a hill? A miracle.
This was discovered by University of Alaska Anchorage researchers. "It looks like it's very strongly related to the number of engines and vehicles that are parked in the garage," Dr. Mary Ellen Gordian with UAA's Institute of Social and Economic Research said.
Autoblog is reporting that Sport Compact Car is closing its doors. Is this a sign of things to come? Will we see more automotive media outlets also fall by the wayside thanks to the global financial mess? Our very own Scott Oldham and Josh Jacquot spent time at SCC, so this must hit a bit too close to home.
That's what IHS Global Insight is saying. It's also looking less likely that any help will be forthcoming before the administration changes.
Of course the question being asked is "what if...?" What if these companies file for Chapter 11? Most feel if that happens, Chapter 7 is sure to follow. Comparisons with the airlines having gone bankrupt are meaningless. Air flights for most people are a one-time deal. Buying a car is another matter. What happens with warranty claims, or anything service-related. Would you buy a car from a company that's filed for Chapter 11? The answer for most customers would be a loud and clear "NO WAY!"
With the "gobble-gobble" season about to begin, it should be noted that the Thanksgiving holiday is the most dangerous for drivers. It's on this holiday that there are more travelers on the road--and they're often traveling greater distances. Simple math will tell you the odds of having an accident go up dramatically when the roads are clogged and for long periods of time.
I know this for a fact. Three years ago we got rear-ended while driving to New Hampshire for Thanksgiving. Fortunately it happened only about ten miles from our house, and no one was injured. So let's be careful out there...
First GM sells their stake in Suzuki, and now Ford has announced that they plan to sell two-thirds of their stake in Mazda. As with the GM sale, Ford is scrambling to find cash.
Ford, currently owns 33.4% of Mazda, which is a controlling interest. This sale is about a 20% stake. This would net Ford $540 million based on Mazda's closing price today, which is barely a quarter of what a 20% stake in the Japanese automaker was worth one year ago. Mazda's shares rose 6.4% to 184 yen today amid media reports of a coming sale.
Not exactly earth-shattering news, but that's the consensus that came out of the Green Car Conference held in Detroit.
It's been reported that President-elect Barack Obama is seeking a "point person" for his administration on auto industry issues (Obama considering an 'Auto Czar'), "somebody who would have the authority to bring about reforms that would lead to an economically viable auto industry."
The key question that was asked was what does the auto industry need to make sustainability a workable business model? Here are some (rather predictable) responses from several attendees:
> A "Manhattan-project"-type initiative to drive auto-industry research for fuel efficiency solutions, develop new technologies and create corresponding jobs. --Dave Vieau, president and chief executive of lithium-ion battery developer A123Systems (lithium-ion battery developer)
> A focused and strong national energy policy. --Sue Cischke, Ford Motor Co. group vice president-sustainability, environment and safety engineering
> Invest in research and use incentives to build customer demand for high-efficiency vehicles. --Jaycie Chitwood, senior strategic planner-advanced technologies department, Toyota Motor Sales USA.
> Use the auto-industry crisis as a springboard for fundamental industry change and institute a fuel-economy based CO2-tax modeled on those used in many European countries. --Patrick Oliva, corporate vice president-prospective and sustainable development, Michelin Group
> Develop a "cohesive" energy policy - a complete, broad, universal energy policy from A to Z. And institute a "floor" price for gasoline and diesel fuel to guard against what may be happening right at this moment: plunging fuel prices marginalizing the business case for developing alternative fuels, more-efficient powertrains and alternatives to the internal combustion engine. --Tim Manganello, chairman and CEO, BorgWarner Inc. (presently most famous for innovating the dual-clutch automated manual transmission)
A while back it was announced that both Sirius and XM satellite would be merging. Now we're getting word of how this might shake out in terms of channels. There will be 22 new stations, and 15 other stations will disappear. The changes went into effect on November 12.
President-elect Obama is thinking about possibly naming an auto czar, once he comes to office. This person would oversee any auto-related emergency aid that may be forthcoming.
If this does come to pass, I'm with David Cole, chairman of the Center for Automotive Research in Ann Arbor, on this.
"It can't be some ideologue or someone with an ax to grind or someone who read about the auto industry in a pamphlet two years ago," states Cole.
This person really needs be somebody who truly understands the auto industry, and not just someone who is out to punish these companies for past transgressions. Long-term survival solutions need to be established--solutions that everyone involved can live with.
Think a collapse of one or more of the Detroit automakers would be a good thing for Toyota, Nissan or Honda? If you do, you would be wrong. Very wrong. All the automakers are tied into suppliers which service all these brands. It would be a lose-lose situation for all involved.
"We're deeply concerned," said Mike Goss, a spokesman for Toyota Motor Engineering & Manufacturing North America Inc. in Erlanger, Ky. "Seventy-five percent of the vehicles we build in North America are sourced in North America, and many of those suppliers are shared with the Big Three."
The supply industry, which is made up of roughly 6,000 firms in North America, two-thirds of them in the United States, "is an integrated system," said Sean McAlinden, vice president of research at the Center for Automotive Research in Ann Arbor. "It's a house of cards. You knock down enough of the cards in the bottom rows and it all goes down for months," he said. "It's going to cost Toyota and Honda a great deal if this happens," McAlinden said. "They're incredibly worried."
You know things are tough when the General won't air-freight Bob Lutz to a major auto show, and in addition, cancels all their scheduled press events. Yep, you can thank the dire situation at GM for this latest turn of events.
Oh, the new vehicles will be on display, but there won't be any fancy happenings pertaining them. One particularly noteworthy press cancelation is that of the Saab 9-X Air BioHybrid convertible concept.
"Grim," that the word being used when describing the General's financial situation. If they stay on the current path, they could run short of cash next month--and that's even with government aid.
"Even if GM is able to secure immediate U.S. government support, we believe that GM's predicament has the potential to set in motion a sequence of events that would be bankruptcy-like," said Deutsche Bank analyst Rod Lache, who lowered his rating on GM shares to "sell" from "hold."
Bad news just feeds upon itself. If your credit rating is good you're in a better position than those with a less favorable credit rating.
Some banks have decided to remain on the sidelines, waiting to see what happens with the car market over the next several months; this despite having received billions in taxpayer dollars to get the credit channels moving again. That will likely have a negative impact on vehicle sales, said analyst Erich Merkle of Crowe Horwath in Grand Rapids.
"As long as lending standards remain tight, you're not going to see vehicle sales coming back," he said. "They're going to remain depressed until lenders start to relax their standards."
The bottom line is this does nothing but continue the hurt at car dealers (and Detroit) across the nation.
Whoa! What's this? Stick-shift cars are gaining in popularity?
That's what GM is seeing. Most likely this is due to everyone's interest in gaining maximum fuel economy. Regardless, for gearheads that's great news, as even the best of 2-pedal cars (a.k.a. automatics) aren't nearly as rewarding to drive than 3-pedal cars.
With the auto industry in such a turmoil, AutoObserver has been blessed by a wealth of topics to explore. One of which is the future of GM and Ford's Swedish patients: Saab and Volvo. Both brands are ill, with Saab being the far more ill of the two. Both brands are also considered fringe, if not exotic forays by these automakers, and therefore not central to either corporation's survival. ...And these days "survival" is exactly what GM and Ford are striving for.
So, that being the case, what do you think will happen to Saab and Volvo?
What if the Detroit Three automakers were to go buh-buy, or if even one or two take a powder?
Well, it ain't gonna be pretty, that's for sure. A report by the Center for Automotive Research (CAR) details the job losses and economic impact of two scenarios: if all three Detroit automakers cease operations next year; and if Detroit automakers contract by half, likely involving two automakers going out of business. As many as 3 million jobs and hundreds of billions of dollars will be lost from the U.S. economy if General Motors, Ford and Chrysler cease operations, a new report shows.
"Either of these scenarios is possible, and indeed probable, within the next 12 months," the study says.
He's said all the right things. He's promised to help our ailing auto industry. Everybody, well... almost everybody, is excited about what happened yesterday. The question remains, however: Will President Barack Obama be able to deliver on his promises? I sure hope so, as I helped him win this election--so don't let me down Mr. President-elect.
If the rumors prove true, it looks like several next-gen GM vehicles (SRX and Equinox) could be getting direct Injection, but in a smaller 3.0 V6. The General is currently offering DI in some larger V6s, and they are getting good reviews. So this is also good news for those who want DI, but in a smaller engine size.
The news just gets worse every month. October auto sales were the worst since World War II. GM was off a staggering 45 percent. Can you believe that?
"This level of sales is not sustainable for anyone in the industry," said Michael DiGiovanni, head of global market analysis for General Motors. "It doesn't matter how deep their pockets are. Everyone is pulling in their reins to one degree or another, but everyone is affected by this."
"I'm always very optimistic by nature," said Mark LaNeve, GM's North American vice president of sales, "but in my 27 years I never saw a month like this." Sales levels were those of a "severe, severe recession," he said. "In September, the consumer was hanging in there with us, but by the time we got to October, he was done and finished."
While most of us reading these blogs are into big horsepower, there's a small but very devoted group who get their jollies from little cars--as in really little cars. Yep, there's a micro car fetish out there, and there's nothing perverse or weird (okay, maybe a bit weird) about it.
MPH Specialties of Portland Oregon is one such shop. Mark Hatten, the owner, has one neat Subie 360 that's sporting a street rod flame paint job. In addition to old Subies, Hatten works on Messerschmitt KR 200s, Honda 600s, Ramblers, and other rare small cars.
Hard to believe that this tiny 360cc Subie eventually evolved into the barnstorming STI...
Now that most motor vehicles are pretty clean, the EPA plans on going after lawn mowers, weed whackers, chain saws, etc. So, does that mean expensive emission-related stuff added to these products? Ummm... yes.
While far from being perfect, this may be the best alternative for both GM and Chrysler in the current environment, says a report by Grant Thornton, a restructuring company.
"Chrysler, as we know, it will cease to exist very soon," said Kimberly Rodriguez, principal of Grant Thornton's automotive practice, which issued Thursday a report on the state of Chrysler and an analysis of a combined Chrysler and GM. "At this point, there are very few options available to either company."
Rodriquez believes it's in both companies' best interest to announce a decision that a merger will go forward by Election Day, with specifics to be hammered out later.
"We believe a transaction between GM and Chrysler is likely because it would be the most expedient way to protect cash and jobs at both companies," Rodriquez added. "If one or the other company were to fail, we would face a much bigger calamity - the collapse of the North American supply base and the potential endangerment of all three Detroit automakers and businesses that depend on them."
Man, if I were an automotive product planner, I'd be on all sorts of meds. I mean, c'mon, this must be among the most stressful jobs out there.
With the roller coaster ride we've had with gas prices--and now with them flirting in the mid-$2.00 range, SUV sales have again started to rise. Think we'll ever learn?
The little town of Itasca, IL has a new police cruiser in their fleet, and it's not your everyday Crown Vic or Dodge Charger. Nope, it's none other than a Subie STI.
Unfortunately it will not be used to run down the bad guys, but rather will be used as a PR tool to appeal to young drivers at various police-youth events. Now if this police department is smart, come winter time they'll swap out those super-sticky summer tires for a good set of winter treads, and really show those Crown Vic and Charger police jockeys what winter driving can really be like!
This is not the first time that a hot Subaru has been used in this manner, or for normal police duty. In fact, in many other countries, Subaru WRXs are used by the police as their vehicle of choice, and have been for years (here).
Chrysler CEO Bob Nardelli has announced that 5,000 salaried workers--that's one in four employees-- would be let go beginning next month. The reign of job terror should be over by the end of December. Happy Thanksgiving, Merry Christmas and Happy New Year.
Originally, the prospect of driving a full-size SUV like some kind of hypermiling superdouche--with the air switched off, mind you--had all the appeal of listening to Fran Drescher on infinite loop.
And the Audi Mileage Marathon certainly would have been a supreme bore had James Tate (of Traction Magazine) and George Achorn (Fourtitude Forums) in Q7 number 4 not put on their game faces for Day Two. In doing so, the team turned the friendly-but-daft Audi marketing campaign into a manhunt.
Sure to become the "next big thing" (well, maybe...), Daimler has launched Car2go, which is a fleet of 50 Smart cars, that can be "hired" as needed to make a quick across town commute, or whatever. This will first be tested with Daimler employees, and then, once the kinks are ironed out, offered to the public.
The Model T Ford debuted in 1908, making it exactly one hundred years old. What better way to celebrate and honor this oh-so-important vehicle, than to have a design contest aimed to create the Model T for the next century.
Can it be done? Is it possible to create another vehicle that will have the same profound impact over the next 100 years as did the original Model T for the past century? Wow, talk about a challenge!Full story here.
Green Car Advisor has a blog up on how owners of SUVs, when downsizing, want to keep all the luxury goodies that they're accustomed to. That's not surprising, in fact this trend is not limited to just SUV owners. Buyers of all types of vehicle, when downsizing, don't want to give up those much-appreciated luxuries.
Yeah, I'd stare too if I saw this creature. It's "Hummer Art." Not sure if this will spawn a new school of art as did Monet and company with Impressionism, but I guess it could. We've already seen various takes on the famous Cadillac Ranch (here), so why not a few spin-offs based on this theme?
At any rate, as you can see, it's a Hummer with wooden wheels, clearly giving it a wild-west feeling about it. And yes, it is art, as it's being displayed outside Royal Academy of Arts in London as part of the Zoo Art Fair 2008 which runs from 17-20 October.
We haven't even loaded up our 2009 Audi Q7 3.0 TDI and the smack-talk is thick. James Tate and George Achorn in the number 4 Q7 are already talking a big game. Seems they're not planning to take even a fuel-miser competition lying down.
We're committed though. No air conditioning. Windows up. We've deflated the Q7's air suspension to its lowest, most wind-cheating ride height. Driving like there's an egg on the accelerator pedal. Heck, we've even turned off the daytime running lights in order to reduce the parasitic load on the alternator. We have every itention of winning this thing.
Wait, we're keeping the air off when we're driving through Death Valley?
"Grim," that the word being used when describing the General's financial situation. If they stay on the current path, they could run short of cash next month--and that's even with government aid. 
