GM is looking for relief and not the kind that any TV commercial can fix. This time around it needs a break from a potential seven billion dollar tax bill it could face thanks to its restructuring efforts. Chrysler would not face the same issue because it is a privately held company. The problem is that GM is asking debt holders to convert their holdings to stock and that kind of transaction runs afoul of government rules aimed at preventing companies from using distressed-asset transactions as a way to avoid paying taxes.
source: WSJ.com
California Autos Examiner
Saturday, January 31, 2009
R-O-L-A-I-D-S Spells Relief, Well Not This Time
Could Saturn Be Integrated Into Buick/Pontiac/GMC?
Sigh, how do you solve a problem like Saturn? I doubt that Julie Andrews would be able to help, but perhaps BPG dealers could? That's one scenario being floated by GM as it wrestles with one of its problem brands. The trouble for the General is that the money losing brand simply cannot gain any traction in the marketplace.
If GM were to pair Saturn with BPG, it is my belief that Saturn would aim for smaller vehicles. Corsa, Meriva and Astra (pictured above) are names that come to mind when looking over Opel's lineup. Now you might argue that the Astra hasn't done very well here in the States, however I maintain that it isn't so much the car's fault as it was a hurried, low cost effort to bring it here and a scant marketing budget once the car arrived. When I test drove the Astra for a week, only one person had a vague idea of what it was, but everyone who saw it, liked it. If the Astra were custom fitted to American tastes and displayed on more numerous BPG dealership lots, it were fair much better. Think of it this way, does it makes sense to have a Cobalt knockoff Pontiac G5 or a Saturn exclusive Astra? Why compete directly with the Chevrolet dealer next door? The underpinnings of the current Cobalt and Astra are similar, but they a very different vehicles. That kind of differentiation makes sense to me.
Of course, they might shut the brand down, but it that option isn't without significant costs. GM is going to have to make its mind quickly in order to meet government imposed deadlines. The company seems resolved to fashion Saab into a stand alone brand by centralizing manufacturing back in Sweden in an effort to make it more saleable and Hummer might yet be sold. That leaves Saturn as a truly different kind of division, a distinction I'm sure that it would love to lose.
Lancer Gets Its Sportback
In a move that really surprised no one, Mitsubishi has announced that it will bring the hatched out Lancer Sportback to the U.S. market. You know me, I love hatchbacks, so this is great news. Happily, we not only get a 168-hp Sportback GTS but also a high-performance, 237-hp Sportback Ralliart.
When the WRX first invaded our shores, I saw those bug-eyed devils everywhere. Heck, I even bought one. However, since changing to the new model, I have seen fewer WRX sedans and even less of the hatch model. Not sure if it was pent-up demand that has cooled or if it is added competition that has lead to a smaller presence in my neck of the woods.
Honda / Acura To Get New Crossovers This Fall
In news trickling out of this year's NADA convention, Honda has confirmed to dealers that it is coming out with a new crossover this fall. That vehicle would almost certainly be the rumored Crosstour that has been snapped so many times as of late.
Not surprising, Acura dealers were also told of a new crossover that may "possibly" slot between the RDX and MDX. I would have to speculate that this mystery model would be the luxed-up version of the Crosstour. You might recall that we have seen quite a few shots of an X6-like Acura speeding around the desert while wearing a lot of camouflage.
Given the spyshots, the Honda model looks very promising. As for the Acura, it's too soon to tell because to my knowledge, we haven't seen revealing shots yet.
What of the Honda Stream, the appealing crossover that has been rumored to come to the States? No word and it is the dark horse in this race. If we knew all the answers, watching the auto industry wouldn't be nearly as much fun!
Friday, January 30, 2009
Google Hits Deer
There are some days I feel like this poor critter. It seems the Google Street View car smacked a deer while making its rounds in beautiful, upstate New York. Google has issued the following response:
Gathering the imagery for Street View requires quite a bit of driving; as such, we take safety very seriously. Unfortunately, accidents do happen -- as some people have noticed, one of our Street View cars hit a deer while driving on a rural road in upstate New York. Due to several user requests using the "Report a concern" tool, these images are no longer available in Street View. The driver was understandably upset, and promptly stopped to alert the local police and the Street View team at Google. The deer was able to move and had left the area by the time the police arrived. The police explained to our driver that, sadly, this was not an uncommon occurrence in the region -- the New York State Department of Transportation estimates that 60,000-70,000 deer collisions happen per year in New York alone -- and no police report needed to be filed.
The Daily What
Thursday, January 29, 2009
Toyotas, Geos and Not So Bright Thieves
Sigh, sometimes you just gotta wonder about people. Take these two twenty-year-olds: John T. West and Ashley Sorensen. The pair decided to steal some rims off a Toyota, I guessing a Corolla, and fit them on their Geo, probably a Metro. That part of the caper went well, what didn't work out is when the two drove by the crime scene, reportedly to "See if the lady had called the cops." Off to the pokey with Ashley and John!
This reminds me of the time some thieves decided to steal gas from my uncle. They completely destroyed the gas locking gas caps on his pickup and then siphoned out the gas into whatever containers they were packing. As you well know, siphoning gas is no picnic. Just behind these geniuses was a 500 gallon tank of gas with an unlocked pump. No fuss, no muss and unlimited fuel for the taking. To top matters off, my uncle is a generous guy and would have given them some fuel if they had simply asked him.
source: cbs13
Rahal Letterman Racing Out of IndyCar For 2009?
I don't consider myself a big racing fan, but I do have a lot of Indy memories from when I was a kid. We'd watch the Indianapolis 500 on TV and when the series came around to Portland, we'd head up to Portland International Raceway to check it out. The names that I remember are Mears, Unser, Fittipaldi, Foyt and Rahal.
News is now developing that the Rahal/Letterman team may not take part in the 2009 IndyCar season because of a lack of sponsorship. That's a pretty big development since Bobby Rahal has been involved with Indy-car racing every year since 1981.
With sponsorship dollars drying up, lots of teams are feeling the pinch all across the globe. I've often wondered exactly what the bang for the buck is on such sponsorship. I don't buy Tide detergent because it is slathered on a NASCAR hood, heck I buy the cheap Costco stuff. It's my belief that involvement with racing teams is more about ego and image of a company's executives than actual advertising dollar value.
Rahal says that he'd still like to have a program for in Indianapolis 500 race. How Rahal would manage to do that, I don't know, but then again I'm not that into racing.
source: autoweek
Win a 2009 GMC Sierra (2/23/2009)
Not only do you win the truck, you also collect $25,000 if you win this sweeps. Click here to enter.
Jaguar XJ Spy Video
For years now, we've been hearing about how good the next XJ is going to look. It's not that the current XJ is ugly, it's just that is very similar to the previous model, and the model before that, etc.
There is certainly nothing wrong with the car's underpinnings. It's lightweight aluminum design is just aces. However, many buyers can't see past this cat's skin.
Sources have said that the reskinned XJ will resemble the XF, but will be better looking. Check out the spy video at Edmunds by clicking here. Be warned, however, that you aren't going to see very much unless you have x-ray vision to see through all that camo.
Billion Here, Billion There: Ford Has a Rough Year
Ford had a tough time in 2008 as did most other auto manufacturers. The difference for Ford is that it setup its credit facilities under much better conditions and is now at liberty to draw down another $10 billion in cold, hard cash. This new infusion "should" help Ford stay away from the hangman for the rest of 2009. However, if things don't improve after that, then all bets are off.
Personally, I'm curious to see what will happen with Volvo. If Ford does end up unloading the brand, it will have to repay some of the loans it has secured by using the Swedish manufacturer as collateral. Certainly Ford would want to get more meatballs for the brand than it is going to have to pay back to lenders. In this economy, who has that kind of meatballs?
"'Ford and the entire auto industry faced an extraordinary slowdown in all major global markets in the fourth quarter that clearly had an impact on our results,' said CEO Alan Mulally. 'We continued to take the decisive actions necessary to lower production to match the lower worldwide demand and reduce costs, which we expect will allow us to significantly reduce negative operating cash flow in 2009 and position Ford for growth when the economy rebounds.'"
source:detnews
Jaguar XF Scores 'Best Executive Car' Title in UK
The 2008 WhatCar? 'Car of the Year' winner, the Jaguar XF, retained its award-winning crown at the WhatCar? Awards held in London last night, winning 'Best Executive Car' for 2009.
WhatCar? editor, Steve Fowler, commented: "Jaguar's XF is a deserving winner once again – and it's about to get even better with new, greener engines. The XF is all about style, poise and pace – driving one is always a special occasion and the interior is one of the most dramatic of any car at any price."
Saturn Caravan
Saturn sent 10 two-mode hybrid Vues on a road trip from Detroit to DC in the days leading up to the inauguration. Along the way, the caravan made stops at three universities (Ohio State, Penn State and Howard University) to encourage students to share their good luck messages with President Obama on giant cards.
Wednesday, January 28, 2009
Signs of Trouble
"Transportation officials in Texas are scrambling to prevent hackers from changing messages on digital road signs after one sign in Austin was altered to read, 'Zombies Ahead.'"
Idle hands are the devil's workshop!
source: foxnews
Win a 2009 smart fortwo passion coupe (2/9/2009)
Let's time travel all the way back to 2006. ACATT had brought to your attention that the little smart fortwo (original version) was featured in several movies including the Steve Martin Pink Panther film. Well, now it's 2009 and the new smart fortwo has a starring role in the second Steve Martin Pink Panther movie. Click here for your chance to win!
Backup! 221 Killed In 2007 by Backing-Up Vehicles
The National Highway Traffic Safety Administration has released study data that attempts to quantify "non-traffic" deaths. Amongst the sad tally was number of backup deaths, 99 of those being children age 14 and under. Other watchdog organizations validate that around two children per week die from backovers. These numbers are much too high and I believe that given recent innovations, backup cameras or sensors should be required in vehicles, especially since low cost monitors can now be integrated into review mirrors.
You can check out the full tally of non-traffic tragedy by visiting the link below.
source: ap/msnbc.com
Tuesday, January 27, 2009
Be Careful Out There!
In a horrible series of events, for two days running, there have been instantaneous deaths on Bay Area roadways cause by motorists driving into parked trucks at high speed. Our weather has been pretty good, so I don't think this can be blamed on poor visibility.
Tempe Dealers Lay It All Out
I thought this msnbc.com article on a Tempe, AZ autoplex was rather touching. There is a dealer who has a "Cat's In the Cradle" moment when he realizes that his long hours at the dealership are much like his own father's years ago. Nearby restaurants are suffering as dealerships cut staff and those who remain pack lunches instead. At the end of the article, however, I was left with hope. The industry will see brighter days, but in its darkest hour, it seems like those days will never come.
The view from the auto mall darkens - Autos- msnbc.com
Monday, January 26, 2009
Honda Crosstour
Temple of VTEC has some hot shots of a new Toyota Venza competitor from Honda. Rumors have it that the car might be called "Crosstour." No word if this is the final look, but I hope that it is. The Crosstour looks to be the best looking U.S. Honda released in some time! Check out the compete set of photos over at vtec.net.
smart fortwo Flips!
According to witnesses, the driver of this smart was driving too fast and clipped a car as it was trying to pass, sending the smart airborne. No life threatening injuries, but undoubtedly some pants were loaded up on this one. Full story and more pictures can be found here.
GM Statement in Response to President Obama's Announcement Regarding the California Waiver Submission
So it begins. Here is GM's response to the President's announcement. A nicely worded statement, but undoubtedly there are going to be some sticking points. I expect that the niceties between automakers and the Obama administration will devolve from here.
"GM is working aggressively on the products and the advance technologies that match the nation's and consumers' priorities to save energy and reduce emissions. We're ready to engage the Obama administration and the Congress on policies that support meaningful and workable solutions and targets that benefit consumers from coast to coast. We look forward to contributing to a comprehensive policy discussion that takes into account the development pace of new technologies, alternative fuels and market and economic factors."
States' Get Their Emissions Mojo Back
President Obama is once again setting the stage for states to set their own, more stringent auto emission rules. No shocker here and one that will undoubtedly be contested. My big dream is that one day, the U.S., Canada and Europe could all agree on one set standard for emissions. This harmonizing of regulations would save untold billions of dollars and the environment would greatly benefit as well.
source: Obama to let states set auto emission rules - CNN.com
NADA Economist: 12.7 Million Light Vehicles in 2009
Is National Automobile Dealers Association's Chief Economist being a bit rosy in his prediction that 2009 will see 12.7 million light vehicles sold in the United States? I think so. His contention is that government efforts to improve the availability of credit will begin to gain traction and improve sales numbers. It's my belief that improved credit availability, while important, won't refloat a sinking ship. Job losses have been heavy and are picking up steam as of late. These dramatic events are making buyers hyper aware that they are in uncharted and dangerous waters. With those kind of bad vibes floating around, I would wager that even those consumers who qualify for auto loans will be having second thoughts. Let's also factor in a dramatic increase in the number of auto dealers closing shop. I have read that up to 2,500 dealers may close in 2009, that is also going to affect sales volume.
I simply cannot accept the numbers being presented by NADA. My own prediction is that we could actually see auto sales slip precipitously close to 10 million or slightly less. I'd certainly love to be proven wrong on this one!
source: autoexecmag.com
Sunday, January 25, 2009
Sigh, Bay Bridge Delayed Over Welds...Again
Shhh...Do you hear that? It's the sound of history repeating. Several years ago, accusations were made that faulty welds had gone unrepaired inside pilings for the skyway portion of the new eastern span of the Bay Bridge. End result? No problems found. Now questions are being made the welds in about 900 bridge panels that are being assembled in China.
I'm all for safety, so I definitely want everything up to snuff on the new eastern span. However, each new delay brings closer the chance that we experience a major earthquake without the new bridge in place. Now that would be most unfortunate.
source: sfgate
Car Pool
Car drives into a swimming pool, it happens so many times on TV, here is once when it happened in real life. You can check out the video here.
Monster Trucks Claim Another Life
Sad news that in such a brief period of time we have lost another life to monster trucks. This time it was a show promoter who was on the losing end. Thankfully, this time the show was immediately halted unlike the last episode where the show continued on like nothing had happened.
Promoter dies after monster truck accident - Motor Sports- nbcsports.msnbc.com
If we just wanted to shut it down, we could have announced that
The headline of this article is a quote from Mark LaNeve, GM's vice president for North America sales, service and marketing regarding the Saturn brand. So what is going to happen to GM's little division that dared to be different? This editorial by Ed Lapham over at Automotive News paints a very pessimistic picture of brand's future. On the other hand, this Detroit News article is a bit more optimistic about Saturn's chances. LaNeve brings up a good point, they haven't taken Saturn behind the barn and shot it quite yet, but certainly leaving Saturn in limbo isn't helping sales. I had previously mentioned that Saturn dealers might purchase the brand from GM and as far as I have heard, that still might be a possibility. GM certainly does think quite highly of Saturn dealers and would like to find a way to retain them (regardless of what Lapham says).
The wait should be over soon. One way or the other GM is going to have announce a decision and we'll just have to wait for that to happen. Of course, that's easier for us to do than Saturn dealers.
source: detnews
CTS Coupe Now Scheduled For Summer 2010 Arrival
So where the heck is that foxy Cadillac CTS coupe? The production model was supposed to bow at the LA Auto Show and then was pulled from the program. No mention was made of the coupe at NAIAS where the Converj and SRX were the hot Cadillac items. Now word comes word from the inside that the CTS coupe has been delayed, as if you hadn't figured that one out already. The coupe was originally planned arrive in the summer of 2009, it will now more than likely arrive at dealers one year later in the summer of 2010.
Please note: The above photos are the concept, not the production version. Only a few members of the automotive press have seen the production model (at Pebble Beach last August), needless to say, ACATT wasn't invited.
Saturday, January 24, 2009
Fiat/Chrysler Link Could Yield 7 New Cars for US!
Industry sources are reporting that the Chrysler/Fiat alliance could give the US a total of seven new cars: four of those vehicles would be Chrysler, one would be a Fiat and two would carry the Alfa badge. How does it all break down?
Fiat would market the 500. That's a no-brainer, why would you want to dilute the brand equity of the cinquecento? Chrysler would get a 5-door variant based off the Fiat Panda.
Next up, Alfa would sell the sexy MiTo while Chrysler got another variation (maybe a crossover?). Think next generation Grande Punto platform, which in its current form is a child of the failed Fiat/GM partnership. That platform also underpins the Opel Corsa. Sadly it is not up to U.S. safety regs as it stands.
Moving up the ladder, Alfa would offer a vehicle slated to replaced the current 147 (called c-evo) and Chrysler could replace the Caliber with some variant of this platform.
The same goes for a Sebring/Avenger replacement, it would be a stretched 147 replacement platform (c-evo).
It all sounds good to me, but can they sell the alliance to U.S. lawmakers?
Win a 2009 GMC Acadia...Oh Yeah, and a House (2/19/09)
It's time once again time for one of my favorite sweepstakes: HGTV's Dream Home. Even better news is that this year the home is located in nearby Sonoma! Click here to enter.
Next Toyota Prez Has Local Roots
In all the fuss over Akio Toyoda becoming the next President of Toyota, I failed to notice that he is a New United Motor Manufacturing Inc. (NUMMI) veteran. Mr. Toyoda served as vice president the joint venture (with General Motors) facility back in the nineties. Since the Fremont, CA facility is but a stone's throw away from ACATT's world headquarters, I would hope that Mr. Toyoda will be in tune with California and its automotive lifestyle. The brand has become so staid, even its Scion models are putting on weight, that it seems to be losing its touch. Just look at all the models it has produced lately, almost all of them are warmed over, with very little sizzle. C'mon folks, I know you can do better than that!
As the Cobalt Turns: Second Shift In Jeopardy?
At one point last year, GM's Lordstown, Ohio was a total hero, cranking out Cobalts and Pontiac G5s as fast as possible. Heck, they even tacked on a third shift. Suddenly, oil prices shifted and the economy took a powder. The third shift is already gone and now the AP is reporting that shift number two might get the axe in April. According to the AP's source, workers at the plant have been told about the cuts and an official announcement could come as soon as Monday.
Manufacturers are grinding their factories' production down to a snail's pace or stopping all production outright as they try to negotiate an absolute horrid sales environment. As assembly plants slow, so will supplier facilities and the effects of that will continue to ripple outwards across the nation. Speak callously of the fate of U.S. autoworkers now and wait until their sorrows wash over you!
Friday, January 23, 2009
Non-Living Trees
You'll recall the other day when I was mentioning that Fisker was using non-living trees for its cars' interiors. While perusing through my boating magazine, I noticed an article about Triton Logging and its Sawfish underwater harvester which is able to dive underwater and cut down standing forests that have been submerged. While some enviros would argue about the way in which these forests were submerged, such as reservoir projects, it's a pretty cool way to give lost resources a second chance.
Please note: I am not claiming that Fisker is using trees harvested in this manner, rather their press materials got me thinking about logging trees underwater.
AMA's Motorcycle Hall of Fame Museum Auctions 1953 Vincent Touring Series C
Every year the American Motorcycle Heritage Foundation raffles off a vintage motorcycle to generate funds to support the mission of the Motorcycle Hall of Fame Museum. Possibly as a sign of the times, for the first time, the winner of the Museum's raffle chose to accept an alternate cash prize instead of the motorcycle. Therefore the Museum has to find a way to unload the bike. The current bid is at $45,100 with the reserve not yet met. Just how much are these things worth? Click here to check out the auction.
Chevrolet Cruze
1/23/09
Update: I just had a phone conversation with Phil Colley, Advanced Technology Communications, GM Powertrain, about the Cruze sedan that was at NAIAS. Phil wanted to clarify that the 1.4L and 1.8L engines that will be offered in the U.S. Cruze are NOT direct injection. That's very curious because I heard what sounded like fuel pump pulsation coming from that sedan. Could it have been a prototype with a DI engine installed? In any case, Phil has asked that I clarify that the Cruze will not be launched with direct injection. Fair enough.
Original 1/19/09 Post:
I was trying to get some shots of a locked Chevrolet Cruze when a representative offered to open its doors for me. I was very appreciative and began to shoot away, when suddenly, like locusts, cameras came at the car from every angle. It seems that everyone in the area took this door unlocking to be a sign that now was the perfect time to get their own photos.
What I am left with are a few shots, but not the great assortment of pictures that I had been hoping to bring you. What I don't think the photos do a very good job of is convey the uniqueness of the fabric panels on the dash and doors. It's a nice effect and one that you'll see more of going forward (think Chevrolet Spark for one).
Is the Cruze going to drink everyone else's milkshake? If it was on the market today? Yes, I think it just might. Will it be able to do this when it finally arrive here in the States? That's much tougher to predict because the competition doesn't stand still. Let's just say that at a minimum, the Cruze will have its staw in the milkshake glass.
Overall the design is pleasing, if a bit innocuous. Certainly an improvement from the Cobalt which is simply too vanilla for my tastes. The interior is by far the biggest winner and you'll see what I mean when you get a chance to check it out for yourself.
As the Cruze drove by me during GM's press conference, I heard a loud clatter from the direct injection system. You'd have almost sworn it was a diesel! I chalk that up to a pre-production car that had been pressed into parade duty. I spoke with some GM powertrain folks and they are well aware of how to quell direct injection noise, so I'm not too worried about it. On a side note, as reported by Automotive News, some of the first Cruzes to be sold here may be powered by European sourced engines due to financial troubles delaying engine plant construction here in the States.
I have never been impressed by the Cobalt, but the Cruze looks to remedy this situation. Hopefully we won't have to wait too long for this new model to arrive and start building a new reputation for the brand's smaller cars. Provided that GM will stick with its formula of over delivering on content and undercutting on price, the Cruze has a real potential to be a perception changer for Chevrolet.
Feeling Tired? Bridgestone Cuts Jobs
Bridgestone Corporation said Friday it will axe roughly 800 jobs at a U.S. tire plant due to reduced demand caused by our current economic funk. The company's LaVergne, Tennessee plant will suspend production of tires for passenger cars and light trucks by the end of June. The facility will continue to crank out tires for buses and trucks.
Cuts run wide and deep. Ripples will sweep across the pond as we begin to feel the true impact of the automotive downturn.
Flying Car...Again
Every so often, someone has the great idea that he or she is THE person to bring a practical flying car into the world. Pictured above is a $194,000 vehicle that claims to have cracked the code. Capable of flying (theoretically) for 500 miles on a tank of unleaded, leaping tall buildings in one bound. Is the Terrafugia Transition all that and a bag of chips? Well, I'll believe it when I actually see it flying.
source: 'Flying car' goes to market - Discovery.com- msnbc.com
Brilliance FRV
I really don't think that these Chinese made cars are that far off the mark. Of course, Brilliance would be wise to not commit the sins of Hyundai and launch too early, with mediocre (or worse) product. It took years for Hyundai to recover from the Excel.
Subscribe to:
Posts (Atom)
