AWN Headline News
"Tom and Ray Magliozzi, the didactic duo whose voices grace the NPR airwaves on the ever-popular radio show 'Car Talk,' are moving themselves into the world of animation with the all-new primetime series CLICK & CLACK'S AS THE WRENCH TURNS, premiering Wednesday, July 9, 2008, 8-9 p.m. ET on PBS."
I'll bet you didn't even know that you were waiting! I'm a huge fan of Tom & Ray's radio show and if the new animated series is only half as funny it will still be right up there with Seinfeld re-runs. Don't forget to set your DVR to record this show!
Monday, June 30, 2008
Your Lousy Wait Is Almost Over
Ford Shopping Volvo Like George Shopped His Bathroom Book
NewsDaily: Ford had talks with Renault to sell Volvo: sources
"Ford Motor Co has had exploratory talks with French automaker Renault SA to sell Volvo, but the talks ended quickly due to price differences, sources briefed on the matter told Reuters. Ford has also had talks with China's third-largest automaker, Dongfeng Motor Group as a potential partner for Volvo, one of the sources said."
Will there be no takers? Ford has already entangled Volvo in its pledge of assets last year when it secured access to a massive financing package. Any sale of Volvo would require some of the proceeds to pay off the obligation tied to Volvo's assets. That means that anything less than a princely sum would yield very little for Ford. It is for this reason that you'll probably hear time and time again of talks breaking down over disagreements in price.
Breaking: Chrysler Minivan Plants Scaling Back?
Update: Here is more info, the St. Louis minivan plant looks like it might be idled. The plant, which is known as St. Louis South and is located in Fenton, Mo., assembles the Dodge Caravan and Chrysler Town & Country minivan. The same vehicles are also assembled at a plant in Windsor, Ontario.
Minivan sales are down and the latest edition of the Chrysler product probably didn't move the needle far enough. The wife and I looked at the Town & Country and we were interested, but we were put off by the dealer's lack of interest in dealing (the dealer had actually tacked on $ to the MSRP!). In sharp contrast, Honda and Toyota dealers were immediately will to cut to the chase and give us a reasonable bid.
-------
Original 10:37 AM Post:
Word is just beginning to leak out that Chrysler may be announcing some production cuts/changes. Stay tuned as this story develops.
Scrap Is No Longer Crap: Metal Recylcing Gets Its Due
In the Metal Recycling Business, It’s Loud, Dirty and Suddenly Lucrative - NYTimes.com
"It is a very good time for anyone involved in the scrap-metal business. People who collect scrap metal and take it to recycling facilities are getting higher rates for their deliveries. In turn, metal-recycling companies are selling more scrap metal, particularly to customers in China, India and other developing nations, who are paying record prices. A.R.C. Metal Recycling has recently been selling its scrap steel for close to $500 a ton, more than double the price it received a year ago."
There was a time when old cars and whatnot were simply driven, dragged or otherwise transported to a backroad somewhere and given the heave-ho over the side. Growing up in Oregon, I used to see many abandoned cars while walking in the hills (that was, when I wasn't stumbling into some dude's pot farm).
Anyways, metal now equals money. The above story tells the tale of just how lucrative the business has gotten. You've read stories on ACATT in the past about guard rails, manhole covers and catalytic converters are being stolen for their scrap value. Things are only going to become worse as metals become even more precious. Unfortunately not all metal recyclers are helping to curb this trend. I'll give you an example. Recently a relative wanted to sell several tons of scrap. He dropped his first load off at a recycler and after showing his driver's license, they issue him a check. Then he heard about another recycler that was paying much more per ton. When he dropped his second load at this recycler, there were no questions asked and he was handed cold, hard cash. Where else could someone foist over stolen goods so easily?
First Kia Coupe, But Here's the Poop: You Still Get the Hatch, Just From a Different Batch
Kia Koup Concept
2009 Hyundai Elantra Touring
1st Kia coupe to debut in '09 - Automotive News
"Kia will get its first coupe when the replacement for the Spectra goes on sale next summer. We believe the coupe will sell better than the hatchback,' said Lee Hyun-soon, president of Hyundai-Kia Motors' r&d division at a ceremony for the new Kia Motors America $130 million design center. The hatchback will be sold mainly in Europe as the cee'd, he said. Lee said the Spectra name may change."
As you probably know, I'm a fierce defender of the hatchback here in the USA and whenever I hear of a hatch's demise, I grimace a little. However, just because we lose the Spectra hatch for a coupe doesn't mean that all is unwell. Hyundai will be bringing a relative to the party in the shape of the 2009 Elantra Touring which is basically a European i30 which is basically a Kia cee'd whose predecessor was driven by Kevin Bacon.
I have no problems with this scenario. We get all three flavors of this vehicle even if they aren't under the same nameplate. Therefore I wholeheartedly welcome the 2009 Kia Spectra/"Whatever Its Name Will Be" coupe. Just buy the Elantra Touring.
Sunday, June 29, 2008
You may be driving up the price of oil
You may be driving up the price of oil - Oil & energy- msnbc.com
"All those speculators getting the blame for driving up the price of oil these days — just who are they? For part of the answer, look in the mirror. The retirement savings of workers across the country, entrusted to pension fund managers, are being plowed into one of the few investments that has delivered phenomenal returns in recent years."
Between our retirement accounts and regular mutual funds, do any of us really know where our money is being invested? Are we our own worst enemy?
Win a 1957 Thunderbird (7/31//08)
Here's a chance to win a '57 T-Bird for the price of a mouse click. Click here to enter.
Titans of the Farm Go Toe to Toe for Bragging Rights and Cash
Farmers Enjoy Smashing Success With New Style of Demolition Derby - WSJ.com
"Across the Farm Belt, the new star of the demolition derby is the combine, a hulking harvester with a top speed of about 15 miles an hour and a sticker price that can top $300,000. At county fairs and local fund-raisers, farmers slam them into each other until only one remains mobile."
Looks like some pretty entertaining stuff.
BMW M3 Beats Prius in Fuel Economy Test
BMW M3 Beats Prius in Fuel Economy Test
"Clarkson chose the most extreme examples to make the point -- a sedan equipped with a V-8 engine producing 414 horsepower against the Toyota Prius with its 76 horsepower hybrid motor. The EPA rates the BMW at 14 miles per gallon in the city, and 20 on the highway which compares unfavorably to the 48 and 45 figures for the Prius. In this test, the M3 matched the speed of the Prius as the hybrid ran flat out over ten laps of the 1.8 mile Top Gear Test Track in Surrey, England. Measurements taken after the run show that the Prius returned just 14.3 miles to the US gallon, while the BMW had 12 percent better fuel economy at 16.1 miles per gallon."
Gotta love Top Gear. Note, the mileage figures in the You Tube video are based on the Imperial Gallon, so that's why there is a discrepancy between the video and the blurb above.
Saturday, June 28, 2008
You Know It's Getting Bad When the Amish Are Complaining
"It's getting high," one Amish farmer said as he took a break from working in an alfalfa field in Lower Chanceford Township. The Amish can operate gas engines, so long as they don't propel a vehicle, the farmer by the road said. "
Can the bubble get any bigger? Now the Amish are carping about the price of gasoline.
Source: The Evening Sun
Win a Prius (7/1/2008)
Advertisers have latched onto the notion that people are drawn to the Prius. Here's another chance to win a hybrid. HEADS UP! This sweepstakes is from o.b. (the tampon people). The contest is open to legal residents of the 50 United States, including the District of Columbia, who, as of date of entry, are 18 years of age or older.
Click here to enter.
Go Capless (No Ford Required)
Ford has been crowing about its capless fuel filling system. "This technology not only eliminates the inconvenience of forgetting to put the gas cap back on after fueling, but also saves time during refueling by doing away with unscrewing and replacing a fuel filler cap. "
Let's say, however, that no particular Ford catches your eye. What do to? Stant has the answer with the InStant Fill replacement cap. "The InStant fuel cap features a convenient trap door mechanism that accommodates the gas nozzle, eliminating the hassle of removing and replacing the cap when refueling. It also meets onboard diagnostic (OBDII) emission specifications."
I know that OBDII systems can be be pretty finicky so I'm not convinced that a check engine light might not illuminate from time to time regardless of what the product literature says. Rock Auto has the caps for around $12 so it would be a pretty cheap experiment.
Stant product info
Friday, June 27, 2008
Commuter Car - Tango T600
Commuter Cars
I saw a Tango T600 passing in the opposite direction yesterday and it sparked me into researching the little car. I'd seen the little bugger online but this was the first one I'd seen on the road. On the company's website the T600 is described thusly:
Retail price $108,000. This is the car that has been designed and built to showcase the potential of Commuter Cars' products. It is being sold as a mostly-assembled kit (less than a day to complete) in order to avoid the time and cost of a fully certified vehicle. The Tango T600 has been built around a racecar roll cage designed to protect occupants in 200 mph crashes. It has four times more protective steel in each door than a typical SUV, for example. It also has 4-point racing harnesses giving ease of mobility as well as outstanding security. Its 80-mile range is nearly 4 times the distance the average commuter travels per day. With high-tech batteries, range could exceed 150 miles per charge. To minimize any day-time inconvenience, the Tango can charge to 80% in just 10 minutes from a 200 amp charging station. This gives approximately 50 additional miles of range per quick-charge. Typically one would just plug in each night to a dryer outlet and get a complete charge in less than 3 hours and be ready for work the next morning.
Wowzers, $108,000. That's a lot of coin but it sure will get you noticed! I called the company to find out about their proposed T200 and T100 models which would be priced at $39,900 and $18,700 respectively but there is no set timeline for introduction of those models. Currently ten T600 are in production and the person answering the phone was unsure how many other T600 orders are outstanding. You can visit the above link to find out more about the Tango.
Mass Exodus of US Cars?
Environmental Capital - WSJ.com : Oil Shock: Analyst Predicts $7 Gas, "Mass Exodus" of U.S. Cars
"Over the next four years, we are likely to witness the greatest mass exodus of vehicles off America’s highways in history. By 2012, there should be some 10 million fewer vehicles on American roadways than there are today—a decline that dwarfs all previous adjustments including those during the two OPEC oil shocks."
Very incendiary stuff from Jeff Rubin at Canadian brokerage CIBC World Markets. Could this be the case? I'm not convinced as I see the current dilemma stemming more from financial market manipulation. We've seen this before in California with our energy debacle. I can't remember how many newscasters I saw interviewing "experts" claiming that our energy shortage was real and that soon we'd be living with rolling blackouts as a normal part of life. I am seeing the same thing again, people trying to rationally explain a completely irrational market. No sale here. Mass exodus of cars? I don't think so.
Rude Crude: 140 Dolla Is Making Me Holla
Bloomberg.com: Energy Prices
You can keep track of the price of oil by clicking on the above link. The $140 mark is just another sign of the sheer frenzy of the market. I'm still of the firm belief that this run-up is a bubble, but how long will it last? Hubba Bubba's "Gum Fighter" character used to declare "Big bubbles, no troubles" but the longer oil stays at these lofty heights there will trouble. If you think of the oil shock like a far away earthquake, the ensuing tsunami of price increases is going hit our economy like a tidal wave heretofore never seen before. I don't think we've even begun to see the effects of the current price of oil as many businesses are either absorbing some of the cost or are protected by hedges. Maybe it's the headache talking, but I'm getting awfully cranky about the current state of affairs. Maybe I should go back to my bike vs. bear stories.
Bear vs Bike: Guess Who Wins?
9NEWS.com | Colorado's Online News Leader | Man riding bike runs into bear
"'I saw a blur and thought to myself, 'Big dog.' Then just as I was hitting it, I saw this gigantic bear head with huge teeth. He was surprised to see me and I was surprised to see him. It was almost like a cartoon when we collided,'"
I classify this as a "feel good" Friday story because neither the bear nor rider suffered permanent injury. As an added bonus, the bike rider gets a fantastic story to tell at parties. Photo above is not the actual bear involved in the story.
Visa To Reduce Transaction Fees for Gas Stations
Visa to reduce transaction fees for gas stations - Retail - msnbc.com
"Visa Inc. on Thursday said it will reduce the transaction fees it charges gasoline retailers, who have complained that their profits are being eroded by them...The credit-card company said its changes will lower fees by 14 percent on a $60 fill-up, and by 43 percent on a $120 gasoline sale. Visa also said it would cap its fee for debit-card purchases at 95 cents."
What's this? A break for gasoline stations? Finally credit card companies are responding to the fuel crisis by offering a break to merchants. The next step has to be fuel pump shut-offs that currently are in the neighborhood of $75. Visa thinks it might have the answer with Real-Time Clearing. RTC processes transactions immediately instead of at the end of the day and can enable stations to make better decisions about acceptance procedures.
One of the original benefits of credit cards was the freedom and convenience they allowed. The recent run-up in prices has meant more hassles and less freedom with some gas stations dumping credit cards altogether. Now, we can't have that, can we?
Thursday, June 26, 2008
Suzuki: Well If Porsche Isn't Going, Then Neither Are We
Suzuki to skip auto show
"Suzuki Motor Corp. will not take part in the 2009 North American International Auto Show in Detroit because the space it was offered didn't fit its needs, the company and show organizers said Wednesday."
I have blogged about Cobo's issues before. Without some much needed freshening and expansion Cobo will continue to run afoul of some manufacturers. With the Indians and Chinese also looking to increase their presence at the show, there will only be an increased need for more space. Heck they are already driving on the show floor! I'm a traditionalist and I don't want to see NAIAS to lose its prominence.
Win a Prius! (6/30/08)
"Smithers, Release the hounds!" Every time I find another Prius sweeps this site gets overrun with Googlers looking to get lucky. Jet Blue is offering a chance to win one of the popular fuel mizers. Click here to enter.
Detroit's Big Three Need Cash -- Fast
Detroit's Big Three need cash -- fast
"The cash burn at GM -- estimated to be roughly $1 billion a month -- Ford Motor Co. and the privately held Chrysler LLC is likely to accelerate as sales of gas-guzzling trucks and SUVs keep tanking and cars and crossovers fail to fill the revenue void. All of which is sparking a new round of speculation fueled by inevitability: Where will these guys get more dough to stay afloat long enough to execute their radical makeovers?"
Case In Point 1: Chrysler Taps $2 Billion Credit Line
Case In Point 2: Ford Unloading Volvo?
Case In Point 3: GM Plans Bake Sale
Okay, I goofed you on the last one, but this is actually deadly serious business. Cash is flowing like a river, but unfortunately it is going the wrong way. The linked article above discusses some additional options: GM could pledge its assets and Ford could get a cash injection from Captain Kirk (Kerkorian).
It really is tough out there. Bond ratings are getting kicked in the teeth. Stock prices cratering to levels not seen in decades. As I mentioned in a previous post, when the pillars of your pro forma start to crumble then you have to scramble to stop Excel from turning your monitor blood red. Imagine your household budget and then take your income stream and slash it to bits. I don't care how many more copies Ford is selling of its Focus model, the profits are nowhere near what their now passé trucks were hauling in. There have been enough boom and bust cycles that this should not have happened. Our domestic manufacturers should not have let the fox into the car hen house while everyone else was in the barn with the big trucks. History repeats itself. History repeats itself. Sadly, this time around I'm not totally convinced that all three of our manufacturers are going to live to die another day.
Having said all of that, I don't want our nation lose any of its automotive diversity. I hope that each manufacturer uses the extra time afforded by these lifelines to field product lineups that are in sync with the times.
Wednesday, June 25, 2008
Three Cheers for the Mazda5
Driving around today I saw not one, not two, or three but four Mazda5 on the streets and freeways near my workplace. I've never seen so many in one day. That's great news for a very deserving people mover. Sales are way up this year and I'm happy to see this little buggy getting its due. At one point I saw a smart fortwo pulling out in front of a Mazda5. I had to double check I wasn't in Europe somewhere.
Get The Groove on the Bus! Miami Police Bust 'Brothel On Wheels'
Police Bust South Beach 'Brothel On Wheels' - Miami News Story - WPLG Miami
"Miami Beach police made 75 arrests as part of a prostitution crackdown meant to clean up the city. According to police, Christina Morta was operating what appeared to be a brothel on wheels; a bus with five prostitutes on board that made regular stops along South Beach"
Now that's a way to increase mass transit ridership! Did they stop at the kiss 'n ride? The above photo is not the actual "brothel bus" but wouldn't it be funny if it was?
Yarrr...Autobahn Pirates
Thieves steal phones, laptops from moving truck - Yahoo! News
"Six Romanians have been arrested on allegations they stole mobile phones and laptops from the back of a tractor-trailer as they followed it down a German autobahn at 60 miles per hour, Dortmund police said Tuesday. "
Pretty daring stuff! Amazing driving to approach a tractor-trailer going 60MPH and keep the chase car close enough so a guy can cut the lock, swing the trailer's door open, jump inside and then heave to booty back to an accomplice on the hood.
A couple of years ago in my neck of the woods, somebody went to the back of a Best Buy and attached their truck to a fully laden trailer and drove off. No high-speed high jinx required.
Yom-yom-yooom, ze chocolad: Ford Unloading Volvo?
Ford in discussions with Chinese co to sell Volvo cars unit
Out of all of Ford’s purchases, I don’t think that Volvo was such a bad one. The brand has a fantastic reputation for safety and platform sharing amongst Ford and Volvo has been fruitful. However, when you build a recovery plan based on certain assumptions (such as x number of F-150 sales) and then find those very pillars of your pro-forma collapsing, well you’ve got to do something. Whereas Land Rover and Jaguar were easily classified as the “fat men in the lifeboat” and sent packing, Volvo has much more worth and therefore hopefully a much higher price tag.
Who would be interested? Chinese? Russian? German? Perhaps even an Indian company? Volvo represents a nice deal for someone looking to crack the US market. You’ve got that strong reputation for safety which would be a great asset for a fledgling company that may not have the best track record. There is a decently sized, standalone dealer body in the US—all the better to establish a beachhead in our market. Volvo’s existing lineup looks good with the only real problem being that they currently do not manufacture any vehicles in the US and therefore suffer the currency consequences.
You could pick up Volvo and continue to manufacture cars in Sweden, but also supplement with cars from your homeland. In addition, US manufacturing capability could be found by acquiring plant capacity from the likes of Chrysler, Ford or GM. What a great way to gain entry into the US! Of course, Ford would expect a handsome reward for its relatively healthy brand. That cash could continue to bolster Ford’s liquidity and help it to weather the difficult storm that many automakers currently find themselves in.
Additionally, I’m still not convinced that Sweden is capable of support two automakers. If someone were to acquire Volvo, could they also pick up Saab at a discount from GM? Consolidating the Swedish automotive industry could help with economies of scale. Of course, with the current platforms being so wildly disparate it would take some time for any economies of scale to be realized. The other option is that a Chinese manufacturer could acquire Volvo and a Russian or Indian company could pick up Saab, or some combination thereof.
Win a Ford Edge (8/31/08)
The ad above is just some local newspaper copy editing silliness, but the sweepstakes is real! Ford's Road to Kona sweepstakes once again steps up, this time with a top prize of a 2008 Ford Edge. Click here to enter.
Tuesday, June 24, 2008
Wish I Had a Marker Like That: Chrysler Taps $2 Billion Credit Line
Chrysler Taps $2 Billion Credit Line
"Chrysler LLC, facing liquidity pressures amid a steep decline in the U.S. automotive market and rising commodity costs, tapped a $2 billion credit line made available as part of its sale last year from Daimler AG to Cerberus Capital Management LP."
On the heels of my post about the rising cost of credit-default swaps, here is news that Chrysler is exercising its right to tap into a $2 billion dollar credit line. Could a "free gas forever" plan be in the works ;-) All kidding aside, we don't know exactly what Chrysler will be using the cash for. Certainly being heavily loaded with unpopular trucks hasn't helped the Pentastar brand. Because Chrysler is privately held, they really don't have to tip their hand nearly as much as Ford or GM.
I would hope that a large portion of any funds used would be to restructure and reinvigorate Chrysler's lineup. I am a bit worried about the departure of Mike Donoughe from Chrysler's uber important "Project D." Rumors have swirled that Donoughe split after a rift with management over the direction/pacing/funding of the project. One engineer was overheard to have said that Project D was like "banging your head against a wall" because management was asking for too much with too little. Keep in mind that all of that is hearsay and cannot be attributed to any one person. I just hope that Chrysler is willing and able to commit the necessary funds to products that can help in its turnaround. Wisely spent, $2 billion can have a great impact. If Chrysler does elect to fully draw down that credit line, let's hope that there will be something to show for it at the end of the day.
Chrysler "Under the Pentastar" 6/20/08
Not that lively: Hybrid pricing, Chrysler Arts, Beats and Eats, Cruise Night with Kurt Busch and Family Fun Extravaganza. However, I'm in a charitable mood today, so I'll feature their promotional clip. Actually, between you and me, I'm crunched for time and this is always an "easy story" for me to post. Don't tell anybody I said that.
Great ROI?: Loan Things to People Who Feel Guilty Many Years Later
Ohio man repays borrowed gasoline after 34 years
"An Ohio couple has been repaid for a liquid asset they shared 34 years ago. Violet and Harold Goff of Southington say a man showed up at their home in recently and explained that he'd appeared at their door in 1974 when he was 17 and had run out of gas."
Back in '74 the gas and container were worth $5 but the same container filled with gas now costs around $25. While I said in the headline that it was a great return on investment, it was really only keeping up with inflation. Using an online inflation calculator, $5 in 1974 would be the equivalent of $23.09 in 2007. But hey, it's a feel-good story so let's not over-analyze it.
Credit-Default Swap: You Want How Much?
Bloomberg Article on Credit-Default Swaps
"The cost to protect GM's debt rose to a record. Credit-default swap sellers demanded 27.5 percent upfront and 5 percent a year to protect GM debt from default for five years, according to CMA Datavision. That's up from 24 percent initially and 5 percent a year yesterday and means it would cost $2.73 million upfront and $500,000 annually to protect $10 million in debt."
Holy Cow! To take some perspective, a year ago a credit-default swap (CDS) seller would have asked you for $400,000/year with no upfront (according to wsj article) to insure $10,000,000 in GM bonds. To see an insurance policy jump from $2 million for 5 years to $5.73 million in just one year is rather staggering when you think about it. The other domestic manufacturers aren't that far off, either. Ford, for example, has an upfront of 24.75 percent.
Given the dismal stock performance of Ford and GM and indicators like the soaring cost of credit-default swaps, folks have asked me what I think of the domestic makers' chances. Reading the tea leaves isn't easy, because just when you start to study the situation things get shaken up again.
I'm very keen to hear what Ford has to say in July. If it announces, as expected, that they will move extremely aggressively to phase slow selling model production and convert those plants to produce fuel sipping Euro-products, then I think it has a chance. A product like the E-Series van should make way for the Transit. Having both the Transit and its already announced little brother the Transit Connect could be a great one-two punch for Ford. Just look how well the Sprinter has done for Dodge. We know already that the Fiesta and next-generation Euro-Focus are headed here. How about bringing the C-Max and Kuga along with them? Mercury seems to be a goner. I'm on the fence about Lincoln. The brand seems to be showing some life, but there isn't anything in the product portfolio that makes me long to own one. I like Alan Mulally and the team that he has assembled. Ford has leveraged everything, so it will be make or break over the next few years.
On the General's side, a new line of efficient vehicles like the Cobalt replacement and Chevrolet Beat (almost a lock for the US market) will help GM's volume brand. A new, Euro-packaged 7 seater people mover for Chevy could also help out Team Volt. All of that is well and good for the bowtie division, but what of the other brands? Pontiac is caught in a difficult position as its intentions to be a more performance, RWD oriented brand could be shunted by production changes. Could products like a rebadged Aveo hurt the brand more than help it? What if GM dropped a direct-injected, turbocharged mill into a RWD, mid-sized Alpha based vehicle? For GMC how long can the veneer of mostly badge engineered cars hold up? Buick has shown some hope with the Enclave, but I'm not sure how many younger buyers could ever be convinced that it's okay to drive a Buick. Cadillac is the real success story. Anybody even remember when they fudged the sales numbers to stay ahead of Lincoln? The CTS sedan shows the way and with a wagon and coupe on the horizon it will have a great lineup. Can the STS/DTS replacement do the same thing for the other end of the lineup? Does the General have enough resources for its other divisions? I'm not sure. If a buyer can be found for Hummer, then it must go. Perhaps the brand can be re-cast, but GM can't keep so many plates spinning. Let someone else fix it. If GM stays the course with Saturn and continues to mold it as a Euro-brand with American touches, then it may be able to make it. I still think it needs a stronger warranty or free maintenance to separate it from its sister divisions. Saturn also needs a lot of marketing dollars to get the word out. As for Saab? I love the brand, but how long can GM continue its life support? One scenario I see is a buyer scooping up Volvo and Saab and combining them into one super-Swedish brand.
Privately held Chrysler is in the worst shape. For starters Chrysler needs to get its initial quality numbers up and continue to improve its interiors. The only magic I foresee happening at Chrysler is if it can use the power of partnerships to make use of its capacity. Building a truck for Nissan and getting a small car in return is a great way to start. Selling some extra capacity to Fiat/Alfa would also be a great move. Could Chrysler also partner with a Chinese or Indian firm to manufacture products at its facilities? Maybe so. There's not much to talk about in the way of future product, so we'll just have to wait and see what they have up their sleeves.
Monday, June 23, 2008
Jetta Sportwagen Now Available
VW Newsroom: JETTA SPORTWAGEN NOW AVAILABLE IN DEALER SHOWROOMS
"Volkswagen of America, Inc. announced today that its Jetta SportWagen, a sporty and functional wagon version of their top-selling Jetta model, is now available in dealer showrooms. The Jetta SportWagen combines practicality with European style and balances both style and sportiness—exceptional ride and handling and class-leading safety features, coupled with its functional design are perfect for those with an active lifestyle"
I've gone ahead and clipped the fuel economy numbers from fueleconomy.gov. Notice the tasty diesel figures. I "heart" wagons, so any addition to the family is a good one. However, I wouldn'd say that the Jetta Sportwagen is fetching in its appearance. When the diesel model shows up this fall, it won't really matter how the wagon looks. Wagon+diesel=love.
Let's Paint That 'Vette
Here's a nice video of the Corvette Paint Lab courtesy of GM. Things have come a long way since my uncle's 1980 Riviera where primer still showed through on the hood of the car.
Infiniti EX35: One Thing I Don't Like
Following around one of the first EX35s that I've seen out in the wild (yes, my wife has to put up with me stalking new cars) I noticed something rather disturbing: the location of the rear turn signal. The EX sports its amber signal on the bumper, not in the brake light cluster. I really hate it when manufacturers do this. Firstly, you're staring at the brake lights, maybe even mesmerized by the LEDs. When you are following a vehicle you are expecting to see the turn signal in the same area as the tail light/brake light--the bumper turn signal is very easy to miss. As an added "bonus" a minor bumper bash can result in broken lenses.
McCain Could Make Energizer Bunny a Very Rich Hare
Sen. McCain offers $300 million prize for new auto battery - Yahoo! News
"The presumed Republican nominee is proposing a $300 million government prize to whoever can develop an automobile battery that far surpasses existing technology. The bounty would equate to $1 for every man, woman and child in the country, 'a small price to pay for helping to break the back of our oil dependency,' McCain said in remarks prepared for delivery Monday at Fresno State University in California."
Energy is shaping up to be a huge campaign issue. By offering the mother of all XPrizes for a battery that beats all, McCain wants to show that he can also propose alternatives that don't require drilling. I would venture that the pressure on automotive manufacturers and suppliers is so great that a $300 million prize will bring little additional incentive to the table: it's already crunch time. Tax credits to help early adopters purchase plug-in hybrids would be sufficient.
"The presumed Republican nominee is proposing a $300 million government prize to whoever can develop an automobile battery that far surpasses existing technology. The bounty would equate to $1 for every man, woman and child in the country, 'a small price to pay for helping to break the back of our oil dependency,' McCain said in remarks prepared for delivery Monday at Fresno State University in California."
Energy is shaping up to be a huge campaign issue. By offering the mother of all XPrizes for a battery that beats all, McCain wants to show that he can also propose alternatives that don't require drilling. I would venture that the pressure on automotive manufacturers and suppliers is so great that a $300 million prize will bring little additional incentive to the table: it's already crunch time. Tax credits to help early adopters purchase plug-in hybrids would be sufficient.
BMW MEGACity Car: A Brand Unto Itself?
BMW exec: We can grow in U.S. - Automotive News
"Robertson says BMW also sees a market in the United States for what it calls a megacity car, also known as Project i, being developed as an environmentally friendly urban vehicle...BMW is deciding whether the new urban vehicle will be sold under a new fourth brand, he says. The project was announced earlier this year at BMW's financial press conference, where it was disclosed the low-emissions small car could be electric. Hybrid and other powertrains are being examined "
The above is a quote from an Automotive News story talking about BMW's good fortune in the US market. The car could be interesting (not much on details yet), but if marketed under a forth brand (MINI, BMW, Rolls-Royce being the existing brands) would it be too much? Just as companies like GM deal with a glut of brands, other companies may be hatching new ones to take their place.
If the megacity car is truly an environmental maverick, then I think that the BMW brand is strong enough to sell it without damage to the brand's image. It's not like Project i is going to be another bobtail 318ti which bombed in this market and caused BMW to swear off econo-hatchbacks in America forever.
Sunday, June 22, 2008
Win A Trip to the Detroit Belle Isle Grand Prix (8/8/08)
Win, win win! ACATT's Sunday sweepstakes has a trip to the Detroit Belle Isle Grand Prix courtesy of Autoweek and Bosch Diesel Systems. Click here to enter.
Saturday, June 21, 2008
Experts: MPG ratings may mislead
Experts: MPG ratings may mislead - Autos- msnbc.com
"A couple drives a 25 mpg sedan. They trade it for a 50 mpg hybrid, a 25 mpg improvement. A family with mom, dad and three kids has a 10 mpg SUV to haul everyone around. They trade it for a 20 mpg station wagon, a 10 mpg improvement. Sounds like the couple did better, at least in miles per gallon.
But lets look at gallons per miles. At 25 mpg the couple burned 400 gallons over a year and their new 50 mpg hybrid cuts that to 200 gallons. They save 200 gallons. At 10 mpg the family’s SUV burns 1,000 gallons of gas a year. At 20 mpg the station wagon burns 500 gallons — they save 500 gallons, much better than the couple."
There's been a push for America to start using the European style of measuring fuel efficiency "litres per 100 km." The idea is that this type of measurement would give buyers a better idea of what they were getting. Using the above example in a "gallons per 100 miles" scenario the couple would see that going from 25 to 50 mpg would save them 2 gallons per 100 miles whereas the family going from 10 to 20 mpg would save 5 gallons per 100 miles.
Friday, June 20, 2008
Len Hunt Gallups To a New Position
Industry veteran Len Hunt taking job at Gallup - Automotive News
"Gallup Inc. has tapped longtime automotive executive Len Hunt to expand its automotive consulting business. Gallup, known for its media polling and consulting services, is expected to announce on Friday, June 20, that Hunt has joined the company as a partner at its office in Irvine, Calif."
When he was with VW of America, Len pushed for the 5 Door GTI to be brought to our market: two points to Gryffindor. While he was with Kia he advocated for the Soul--a much better looking Scion xB: Gryffindor wins the Quidditch World Cup.
I'm happy to see that Len has landed on his feet, but sadly he is a bit more removed from the automotive scene. I wish him all the best in his new position. It saddens me when people who I regard as having a good handle on product such as Len and the ever resourceful Wolfgang Bernhard find themselves in the back seat. All of that makes the product achievements of someone like Bob Lutz all the more impressive.
GM Develops Nose Candy for Service Departments
Ailing auto dealers spiff up service departments - Autos- msnbc.com
"A box that sends puffs of new car-scented air into his Chevrolet dealership's service lane is just one of the tricks Tim Colussy is using these days to entice buyers to come to his Pittsburgh-area dealership for servicing."
Well, maybe it's not "nose candy" in the traditional sense but GM has developed a new car scent that is having a positive impact at the dealerships who use it. Car dealers are trying to make up for lost car sales revenue and a lack of warranty repairs by providing a clean, well-lit place to have your car maintained. As a bonus, customers return to the dealerships where they have received excellent service when it comes time to buy a new jalopy.
Good service helps any kind of business. Treat your customers right and you'll do very well for yourself.
Metropolitan Transportation Commission: Rolling Stop? Why Not
The Bay Area's Metropolitan Transportation Commission is considering a new plan to encourage more people to ride bicycles. The proposal would allow bikers to roll through red lights and ride slowly through stop signs. The plan would require a change in the California state vehicle code to allow bikers to avoid citation.
I can't say that I've ever said to myself, "I'd get of my butt if it wasn't for that darn stop sign at the end of the block." However, as a bicyclist I have been pulled over by the cops for going through a red light after stopping. I would add that it was 6AM in a completely abandoned part of town. The cops advice? Look behind you before you do that again. Yeah, thanks.
I'm not convinced that rolling stops in a city like San Francisco is good for cyclists or motorists. There's simply to much to take-in unless you have completely stopped and take a look around. That's not to say that using common sense when it comes to enforcement couldn't be quietly implemented.
Thursday, June 19, 2008
DUI summons for Nev. DA after 2 crashes in 6 hours
The Associated Press: DUI summons for Nev. DA after 2 crashes in 6 hours
"Authorities say the prosecutor of a rural Nevada county was issued a drunk-driving summons after crashing cars twice in six hours on the same California highway."
Luckily no one was seriously injured.
Ah, But Would Kramer Lose His Car In This Garage?
BBC NEWS | Scotland | Glasgow, Lanarkshire and West | Consultation over historic garage
"The owner of an historic garage in Glasgow's west end is due to set out revised proposals for its development. The 100-year-old structure is believed by some heritage experts to be the world's oldest multi-storey car park"
Classic stuff. Who was the first person to lose there car in a parking garage?
Porsche driver 'stole petrol'
Porsche driver 'stole petrol' - 19 Jun 2008 - NZ Herald: New Zealand National news
"A 38-year-old driver of a $120,000 Porsche has been charged with theft after filling his car with petrol and driving away...without paying for $169 worth of petrol from the Paekakariki BP"
Those are NZ dollar figures, so calculate a little less in US coinage. However, c'mon dude pay for your friggin' gas.
2009 RDX Adds Some New Shades of Lipstick, But It's Still a Fuel Sucking Pig
Temple of VTEC Rumors and News - 2009 RDX Adds New Features to an Already Impressive Mix of Performance and Utility
"For 2009, the RDX now comes standard with a 4-way adjustable power-activated passenger front seat along with four new exterior colors: Basque Red Pearl, Crystal Black Pearl, Grigio Metallic and Palladium Metallic. In addition, AcuraLink® Real-time traffic system includes coverage for yet another major metropolitan area--bringing the total to 77 areas."
Okay, that headline is angry. Really angry. I usually don't get so worked up, but let me tell you I'm just not happy with 17 City / 22 Highway mileage of the RDX. After that spiffy new diesel debuts in the TSX they need to put that mill in the RDX and get those numbers up.
For 2009 what do we get? A 4-way adjustable power-activated passenger front seat that should have been standard in the first place and some new colors. Bah humbug. It's sharply styled enough, but I just can't get into this model. Right now dealers have 99 days worth of the RDX, a body count only outdone by the lackluster RL which has 100 days worth on the ground.
I like Acuras...I just don't like what Acura has been doing lately.
Gettin' ARCO on Your Butt: Some gas stations banning credit cards
Some gas stations banning credit cards - Oil & energy- msnbc.com
"When gas station manager Roger Randolph realized it was costing him money each time someone filled up with $4-a-gallon gas, he hung a sign on his pumps: 'No more credit cards.'"
Along the lines of yesterday's article about gasoline stations losing money, some stations are fighting the fight against credit card fees by banning plastic altogether. The problem I see with this scenario is that with the cost of fill-ups for most folks easily exceeding $50 or in many cases $100, who carries that kind of cash around? The wife only trusts me with a $20. I suppose they can still accept debit cards, but with skimmers all over the place, how safe is that?
The ARCO reference is a hat tip to one of the originators of the credit card ban. I rarely fill-up at an ARCO because it is a PITA to do so.
Wednesday, June 18, 2008
Bay Area: Free Rides On Mass Transit Today (June 19, 2008)
Full News Release
"Bay Area commuters can circle Thursday, June 19 on their calendars and get ready to plan their free trip on transit. June 19 is the only day this year that the Bay Area Air Quality Management District (Air District) and the Metropolitan Transportation Commission (MTC) will provide free rides on the region’s 30 transit systems. Transit will be free all day on Bay Area bus and light-rail systems, and until 12 noon on AirBART, BART, Caltrain, the ACE train, Amtrak Capitol Corridor trains, and on the Golden Gate, Alameda-Oakland, Alameda-Harbor Bay and Vallejo ferries. This marks the first year that Amtrak Capitol Corridor has participated in the Bay Area’s free transit day campaigns. The June 19 date for free Bay Area transit coincides with the third annual “Dump the Pump” day, a national promotion sponsored by the American Public Transportation Association to encourage the use of transit."
Daly City Police: Man Admits To Smashing 10 Car Windows
Daly City Police: Man Admits To Smashing 10 Car Windows - News Story - KNTV | San Francisco
"Daly City Police have arrested a man who they say admitted to smashing the windows of at least 10 cars overnight."
Motive: Unknown. Status: Busted
Why do people have to take it out on the ride? Sure a smashed car is preferable to getting mugged: but why man, why?
VW Newsroom: THE PEOPLE WANT BETTER FUEL ECONOMY WITH NO COMPROMISES
VW Newsroom: THE PEOPLE WANT BETTER FUEL ECONOMY WITH NO COMPROMISES
"Volkswagen of America, Inc. today announced pricing for their eagerly anticipated Jetta TDI sedan and SportWagen starting at $21,990 and $23,590, respectively. Fuel efficiency, performance and convenience all come standard with the 50-state compliant Jetta sedan and SportWagen TDI, which meet the most stringent emissions standards in California and the world. Both models will be available this August."
Diesel returns to the people! I'm a big fan of oil burners and couldn't be happier to finally see their comeback en masse to California. There are some folks who are skeptical about how diesel will be received by Americans, but even when you factor in the added premium per gallon that diesel commands over gas, you're still ahead. There is also the added cost tacked on to the MSRP, but for long-termers the equation works in diesel's favor. You also get bladder busting range on the highway. I'm looking forward to the first car that can offer a 1,000 mile range on a single tank of fuel.
Take That! Oil futures regulators reach deal on trade limits
Oil futures regulators reach deal on trade limits - International Herald Tribune
"Oil futures regulators in Britain and the United States have reached an agreement to impose the first trading limits on oil contracts changing hands on a London electronic exchange. The agreement comes as some U.S. lawmakers call for more regulations to rein in speculators."
I don't care what T. Boone Pickens says, I believe that speculation is at least partly responsible for manipulating the price of oil to its current heights. Any increased oversight into the trading of oil contracts should be regarded as a good thing for consumers all over the globe. To those who have raked in massive profits over the past few months, I say take your money and get out.
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