Okay, probably not a question that most Americans are asking, but when can we logically expect to see some Italian jobs running around on our streets? The answer is, probably pretty quickly (at least in limited quantities). Fiat is likely to do is to bring over something like the sporty 500, modified minimally for U.S. standards as early as next year. There won’t be many brought over and they really won’t make any money on them, but it will get traffic into Chrysler dealerships by members of the curious public. As dealers well know, curiosity only lasts so long. So the real meat and potatoes will be when Chrysler can convert its existing facilities to produce new models based on Fiat platforms. That won’t happen overnight. At best you are looking at 2011-12 time frame. That’s a heck of a wait with only a smattering of refreshed product to tide the company over. That’s the part that worries me. If Chrysler was struggling before bankruptcy, how the heck is it going to survive until fresh product can arrive?
Fiat really was the only life line for Chrysler with the other option being to shut the company down, chop it up and feed it to the highest bidders. Talk about an unpopular notion! I wish the new management team all the best and hope that bankruptcy will be swift.
Thursday, April 30, 2009
When Can I Buy My Fiat?
Twittering Bad Drivers
Oh, the national fascination with Twitter, when will it end? Now folks are setting up Twitter feeds to chastise bad drivers.
source:See a bad driver? Flip a tweet, not a bird - CNN.com: "i"
Chrysler to file for bankruptcy
Well, it would appear that all signs point to bankruptcy. Personally, I blame the Jeep Compass ;-)
However, I would caution that "It ain't over till it's over." Stay tuned...
Chrysler to file for bankruptcy | Reuters
Next Gen Saab 9-5 Soldiers On
We'll see how this one plays out. The platform under this Saab also underpins the Opel Insignia and Buick LaCrosse. Pretty tasty stuff and a very promising base for the flagship sedan. But what of Saab itself? Let's all keep our fingers crossed!
Source: AutoExpress
Wednesday, April 29, 2009
Chrysler: It's Over, Except When it Isn't
The WSJ is saying that talks between the Treasury and Chrysler lenders have broken down and Ch 11 is imminent. The Detroit Free Press is reporting that the Treasury has sweetened its offer. We have until 11:59:59 on April 30th to officially call it one way or the other (unless they wrap things up before then). Is the suspense killing you? Personally I can't sleep, but that may have more to do with all the wine filled chocolate candy I just inhaled.
I am still standing by my prediction that Ch11 will be avoided. The amount of money being argued over simply is not worth the chance that things will go horribly wrong in a quick rinse, 363 filing. The hold outs are getting what they want, more money out of the deal, so why wouldn't they sign on once they have convinced themselves that they have gotten the best deal possible?
Now several people have brought up the fact that certain entanglements, such as unwanted dealers, would be dispatched very easily in bankruptcy and that this may be a motivating factor in going ahead with Ch 11. While I certainly concede this point, I still feel that it is far riskier to try and speed skate through bankruptcy court rather than deal with these issues later on down the road. The economy is woozy, having just been been walloped, and the last thing the Administration needs is a destabilizing force. I just don't think Chrysler has the legs to withstand Ch 11 without slipping into Ch 7. GM would have a far better chance of trying to pull off a 363 good asset/bad asset bankruptcy.
Bridging the Gap
A fantastic shot of the Bandra-Worli sea link project in Mumbai, India.
Here's a snippet taken from bandraworlisealink.com:
The Bandra Worli Sea Link Project has been one of the most highly recommended project of all the transport studies done for the metropolitan region during the last forty years. At present, Mahim causeway is the only link connecting western suburbs to island city of Mumbai. The existing north south western corridor is highly congested and during the peak hours results in a bottleneck at Mahim Causeway. Vehicular traffic admeasuring about 1,20,000 PCU travels on the Mahim causeway everyday and during peak hours and it takes about forty minutes to travel from Mahim causeway to Worli, a distance of about 8 km.
Here in the San Francisco Bay Area, we watch as the eastern span of the Bay Bridge continues to be built.
The above photo was taken by Gautam Singh.
Open Your Books to Chapter 11
In what I can only describe as a game of "Extreme Chicken," President Obama is writing two speeches for Thursday: one in which he declares that Chrysler will fall into Chapter 11 bankruptcy and one in which he announces that Chrysler has avoided bankruptcy.
From what I know of the situation, it would appear that a few lenders are holding out on a plan to cancel a large portion of Chrysler's debt. The White House, Fiat and labor unions may be intentionally leaking information to the media that they are "comfortable" with Chrysler declaring Chapter 11 in order to force these debt holders to play ball.
Obviously if Chrysler goes Ch 11, then Fiat could avoid the management hassles of taking over an entire car company, but on the flip side it would have to plunk down some serious cash upfront to get the assets it wants, something that it wouldn't necessarily have to do otherwise. Jeep alone would bring a tidy sum.
Frankly, I'm going to go ahead and call it: Chrysler will not declare bankruptcy. I think that enough of the conditions have been met and all that is left is posturing on both sides to get the best deal possible. At the heart of the negotiations, we are down to haggling over only a billion or two at this point and given that the economy looks to be stabilizing, I don't think the Obama administration is going to risk upsetting the apple cart with a bankruptcy.
We have only a few hours to wait before we know the answer.
French Property + Tesla Roadsters = Match Made In Heaven?
A real estate development called Welcome in France is offering a free Tesla Roadster with every purchase of one of its homes in a new ecological luxury-housing development on the outskirts of Paris. The development will use solar panels, geothermal energy, and its own water treatment facility, among other things. The story hails from our friends over at Le Blog Auto.
Here Comes Baby!
Awhile back I alluded to the fact that a big announcement was going to be made here on these very pages. Well, today's the day and I'm happy to let everyone know that we'll be adding another driver to the ACATT household. Baby is due in September and we're super stoked for his or her arrival.
Win a Nissan Cube (5/4/09)
Another day, another sweeps! For my money, the Cube has taken the original Scion xB's funky swagger and run with it. Where the hell were all of these cars when I was younger? Click here to enter.
Tuesday, April 28, 2009
Win a Honda Insight (5/1/2009)
I like the Insight and I like what it stands for: a reduction in the price of hybrids for the average buyer. What I don't like is the absolute crap quality of the interior plastics. Honda, c'mon, I know we are hittin' a price point here, but jeez, charge me an extra couple hundred bucks and give me some finer stuff.
Click here to enter.
Car Pile
Photograpter Chris Jordan has taken some amazing photos. This particular shot is from his collection called "Intolerable Beauty: Potraits of American Mass Consumption." You can check out Chris' website here.
When we think about "Cash for Clunkers" this is what happens to the clunkers. Now, it should be noted that much of the automobile is already recycled, unlike some other consumer goods.
Blink! Chrysler Creditors Agree to Deal With Treasury
And so with minutes left to go, it would appear that Chrysler may avert bankruptcy. All the major player have come to the table and given their fair share. The unions have reached a compromise, Daimler has given up its stake and debt holders have agreed on a massive write down. I think we have a deal!
While I am not a hundred percent sure that this marriage is going to work in the long term, it will hopefully bridge the gap until we reach a time when things are financially more stable.
Now the question is, "Are you ready to drive a Fiat?"
Chrysler Creditors Agree to Deal With Treasury - washingtonpost.com
Monday, April 27, 2009
Okay Folks, Just Because GM Is Having Problems Does Not Mean You Can Get a Malibu For Free
Ah, the opportunistic consumer. God bless 'em! In today's example, we have a writer who tries to "score" with a Chevrolet dealer and get an outstanding deal on a Malibu. Well, big surprise they were not able to get 50% off (slight exaggeration).
While the salesperson in the story could probably use a brush up on his skills, I think it's important to note that while all dealers are suffering, they have adjusted their stock of cars to reflect this. You can only club a seal so many times, folks.
I can't even count how many people have approached me to ask how great a deal they might be able to get on a GM car. While it is true that deals abound in the market, it has not been my experience that GM dealers are giving away cars. If that were the case, I'd be driving a Pontiac Solstice.
I'm not defending dealer's actions. I know that there are a lot of nut jobs out there. However, the attitude that consumers carry into dealerships can also leave a lot to be desired. Folks need to keep in mind that new car sales aren't that profitable to begin with. Certainly customers should expect a professional environment, but if things don't go as they had envisioned, they shouldn't flip over the table and demand their discount. Just walk out and find another dealer.
As the writer realizes in the end, it's much easier to go online for pricing once you've whittled down your choices. I usually blanket 10 or so dealers with a request for a specific model and usually find that one or two are willing to make a deal. It saves me time and aggravation and I am better able to get the car I want for the price I want. I've purchased many and friend and family members car this way.
Official: Pontiac is a Goner
Since word had already "leaked" out last week, no one was shocked today when GM announced the death of the sporty brand. Eliminating Pontiac means that there will be one less distraction for the General as it attempts to heal thyself. GM said that no Pontiac models will be rebadged as Chevrolets, but that won't stop me from speculating.
It might be curtains for the sexy Solstice roadster. Since Saturn is leaving the GM fold one way or the other and Opel's relationship with GM is in flux there really is no place for the roadster in the grand scheme of things. Oh sure, GM could make it a Chevrolet or spruce it up and make it a Buick, but I sincerely doubt it. The volume just isn't there to justify this. I'll never forget zipping around GM's proving grounds in one of these roadsters several years ago. The air was crisp, the paint was bright and I was having a blast. I still hope to own one of these cars someday.
The G8 sedan is a different story. GM's Australian brand, Holden, needs the volume and this sedan is actually very competent and favorably reviewed. Since all the work has been done, it would make a lot of sense to offer this sedan as a Chevrolet, especially since they do it in the Middle East already (see above photo). However, given fuel economy standards, GM may decide that it is not worth the trouble to keep this model in the States.
The Vibe is the only other model I can think of in the Pontiac range that has a chance. The sharp looking hatchback built in cooperation with Toyota has a loyal following. It would seem a shame to lose all that equity. The problem is, Chevrolet dealers are stuffed to the gills. It's a great problem to have, but still one that needs to be thought about. Since the HHR hatch will be moving up in size when the Orlando hits, it would make sense that the Vibe could slide in to fill the gap. Given the unique way in which the Vibe is made, I'm not sure how much the General makes on each model sold. It might not be worth the trouble to keep the Vibe around. Instead, what might happen is that GM phases out its agreement with Toyota and then eventually places a Cruze-derived hatch of similar size into the Chevrolet lineup. It's my strong belief that Chevrolet must have a hedge against the competition's hatches. While true that Chevrolet will have the Spark hatch, that vehicle will be substantially smaller. Ford will have the excellent Focus hatch, Chrysler will have any number of Fiat derived hatches, and the list goes on.
All the rest of Pontiac's "me too" lineup will undoubtedly be euthanized. It's a sad day, but sometimes you have to cut off a limb in order to survive.
Speed Cameras: Most Hate Them, But Kill an Operator?
I have read a number of speed camera stories from the great state of Arizona, but up until today I was unaware that someone had been killed over it. Apparently, Arizona not only has fixed cameras but photo vans as well. The vans are marked and manned by civilians. A very pissed off driver swooped around one of these vans, shot and killed the operator sitting in the van. It just makes you sick. Now, the wisdom of putting an unarmed civilian in what is essentially a fishbowl of motorists' ire probably doesn't make a lot of sense and Arizona is reviewing its procedures.
My feelings are mixed on the whole idea of these cameras. I don't want to see people speeding down my street and when I'm on the freeway, I hate the sight of some moron zooming and swerving past everyone. However, I don't think the simple fact that you may be going a set amount over any particular limit automatically justifies a ticket.
Speed Camera Slay Fuels Debate In Arizona - CBS News
Sunday, April 26, 2009
GM Press Conference
The above link doesn't seem to be working (it's supposed to display a placeholder), but you can visit here to see live streaming of the April 27 press conference. The conference will begin at 9 a.m. eastern.
We should hear all about GM's revised viability plan. Chances are we'll get official word on Pontiac. I have heard some talk that Pontiac will be put into a state of hibernation, not actually killed outright, giving GM the ability to revive the brand when things get better. I'm not so sure about this theory, I think the damage done to the brand would be hard to repair later on. Why bother? Just axe it and be done with it.
Friday, April 24, 2009
Wither Pontiac?
More and more sources are confirming that Pontiac is indeed done for. The brand has struggled with a lot of "me too" models, but I thought the G8 was a great vehicle with which to rebuild the brand. I also think the Solstice Coupe is pure sex.
In the grand scheme of things, however, offering Pontiac at the Altar of Obama is probably a wise move. Since most Pontiac dealers are paired with Buick and GMC, there should be little fuss from the troops. I don't suppose that we could get our Chinese market Buick Park Avenue now that the G8 is gone, could we?
No authentic images of Chief Pontiac are known to exist. This artistic interpretation was painted by John Mix Stanley.
Thursday, April 23, 2009
Lambo vs Hyundai
Given the powerful brakes on a Lamborghini, the driver of this car must have not been paying any attention at all. No damage to report other than the Lambo owner's pride and some sheetmetal.
Truth Revealed in San Francisco: Street Sweeping Just a Scam to Get Parking Tickets
I've discussed this before, I believe that San Francisco is simply a giant parking ticket machine. They'll ticket your car, they'll ticket my car, heck they'll even repeatedly ticket stolen cars. I never visit the City without a roll of quarters.
Now it has been revealed that after SF cut street sweeping program in more than 20 neighborhoods last year to save money, it has lost four times more money than it saved due to a reduction in the number of $50 street-sweeping tickets it was able to issue. Those lose revenues would have gone to the struggling Municipal Transportation Agency and now SF has to figure out how to fix that deficit. More than likely transit service will be reduced and fares hiked.
source: sfgate
Wednesday, April 22, 2009
Heal the Bay Gives Away a Ford...
...car, not a Ford family member. To be more specific, Heal the Bay will auction off a fully accessorized 2010 Ford Fusion Hybrid at the May 28 event. Elena Ford, the great-great-granddaughter of company founder Henry Ford and current chief of global marketing, is scheduled to be on hand to auction off the car.
I'm not quite sure Heal the Bay chose a rather dead looking fish for its logo, but whatever the case, I suppose it's a worthy cause. The Bring Back the Beach Gala is the West Coast’s largest environmental fundraising event and has sold out the last four years. Group tables and individual tickets, beginning at $500, are still available at www.healthebay.org/bbb.
Tuesday, April 21, 2009
Ford Fusion Hybrid Attempts 1,000 Mile Single Tank Run
I've said it before, I'll say it again: the holy grail for any family sedan is to achieve a 1,000 mile range between gas stops. Granted, this Ford stunt won't be achievable by average drivers, but it's a step in the right direction!
This weekend, the 2010 Ford Fusion Hybrid is being put to the ultimate fuel-efficiency test. A team of drivers, including NASCAR star Carl Edwards and world-record breaking hypermiler Wayne Gerdes, will attempt to drive more than 1,000 miles on a single tank of gas, raising money for the Juvenile Diabetes Research Foundation in the process.
The 1,000-Mile Challenge starts at around 8:00 a.m. on Saturday, April 25, from Mount Vernon, Va., and ends the morning of Monday, April 27, in Washington, D.C. The team will drive for more than 43 hours continuously to reach the 1,000-mile goal. The drivers will do stints of between two and three hours each and will have regular breaks to ensure safe driving is maintained. Already rated as the most fuel-efficient, mid-sized sedan in America, the Fusion Hybrid will need to average at least 57 mpg to achieve its goal. During preliminary testing in preparation for this challenge, Ford engineers have reached as much as 70 mpg in the Fusion Hybrid by using Eco-Driving techniques.
source: FORD TEAM AIMS TO DRIVE 2010 FUSION HYBRID 1,000 MILES ON A SINGLE TANK OF GAS | Ford Motor Company Newsroom
Sunday, April 19, 2009
Hippo Car
4/19/09 Update: As much as I disliked the car, I appreciated the artist. In a sad turn of events, a year after I posted about this RAV4 art car, the man who created it, Tom Kennedy, has past away in what apparently was a surfing accident. He was 48. Full story here. You can visit his website by clicking here.
Original 4/19/08 post:
Turning a RAV4 into a Hippopotamobile? Some people might say that was an improvement. I kid. I kid. No really, it's quite atrocious. Just stop it. Stop it already.
Full article here.
Saturday, April 18, 2009
Routan BabyMaker3000: Launched At Worst Possible Moment
VW USA CEO Stefan Jacoby says that in hindsight VW launched its Chrysler-based minivan, the Routan, at the worst possible moment just as auto sales were tanking. However, I have to ask, "Was there ever a right time to offer a rebadged Chrysler as a VW?" I'm not trying to be flip, but the Routan is no Microbus reinvented (see below).
When you add a rather lame advertising campaign featuring Brooke Shields, well then I think you have pretty much sealed the vehicles fate. VW temporarily halted production of the Routan in December and who knows when it will restart. Out of the 22,037 Routans built, only 5,582 have sold.
As for future Routans, I'd say its pretty laughable that there will be a second generation. Chrysler will either be partnered with Fiat or dead and VW will be focusing on its new Chattanooga built sedan and possible Up! variants (which may include a small van).
Suzuki SX4 In Hot Demand, Fiat Future Foretold?
Whenever I see a Suzuki SX4 in traffic it catches my eye. Is it the chic European styling? Maybe. In any case, it seems to have caught the fancy of U.S. buyers, sales are up 49.8 percent March over March. That's great news in a market like the one we have now.
Why the spike? Well, firstly I'd attribute it to the sedan. Launched after the hatch, the sedan now accounts for about 75 percent of all SX4s sold. Oh America, what is your fascination with a trunk? You can also get the sedan and hatch in FWD, when the hatch launched it was AWD only. Suzuki also sweetened the pot with a Garmin GPS unit. Factor in sales incentives and you have a lot of reasons for a sales boost.
One thing to keep in mind, Suzuki shared development with Fiat which sells this car as the Fiat Sedici. Guess what we've been talking about lately? Fiat! So in a way, if you'd like to get a feel for what Fiat/Chrysler might offer, head on down to you Suzuki dealer today. Just don't plan on seeing a lot of SX4s, there will be s shortage until mid to late May.
Friday, April 17, 2009
Kia Soul, A Car Even a Hamster Can Love
I like the Kia Soul and I think this ad is pretty clever. It grabs your attention, it stays fresh by swapping out the music and it shows you some of the features of the car. I think it hits its target spot on!
State Of GM
An update from GM CEO Fritz Henderson on GM's viability plan and restructuring 04/17/09.
This really is an unprecedented time and that calls for unprecedented measures, so these "fireside chats" from execs are going to be common as they try gain the public's confidence.
Thursday, April 16, 2009
Chrysler/Fiat: Just Kicking the Can?
As I continue to watch the unfolding saga of Chrysler and Fiat, I have thought a lot about the motivations that each party brings to the table. It's widely believed that the Obama administration would not allow a complete failure of either GM or Chrysler. Another point often agreed upon is that GM could withstand a quick rinse in bankruptcy, with the "Good GM" being separated and quickly brought out of bankruptcy. Sadly, many experts fear that Chrysler would not be able to hold up under Chapter 11 and would quickly slip into Chapter 7 liquidation.
Given these beliefs, Chrysler's only true hope it Fiat. Now, Fiat is an interesting partner to be sure and in typical Italian fashion, she seems to run hot and cold. In one sound bite, we hear Sergio Marchionne say that he sees no reason a deal cannot be complete by the end of April. The next quote I read, Sergio says that he will walk away from Chrysler if the unions don't accept cuts. Well, which is it? I think it's more the former rather than the latter. The treasury has hinted that it will accept a swap of debt for equity and undoubtedly it hopes that others will follow suit. It's hard to believe that unions will go out Thelma and Louise style, but I guess it is possible.
Okay, so let's say the deal goes through. There would be no way to judge the success or failure of the alliance for at least four years, which conveniently enough would skip over the next major election cycle, effectively kicking the can down the block far enough that the economy will have recovered and will no longer be a focus for the public's ire.
I'm still in favor of the deal myself. The country really doesn't need the wind knocked out of it again with a huge business failure right now. Is Sergio Marchionne all that and a bag of chips? I hope he is, but let's not forget that he had a lot of help from GM in the form of a two billion dollar payoff.
Potholes = Safe Speeds?
I knew a gal from Kenya who liked to quip that you could always spot a drunk driver in her country because they were the only ones driving straight, not swerving around potholes. Seems that the small English village of Navestock, some 25 miles northeast of London, is also looking into the benefits of potholes and their effect on slowing down traffic.
While the idea might have some merit, I imagine that the only true beneficiaries will be local car dealers and mechanics.
Village may use potholes for speed control - Weird news- msnbc.com
Tuesday, April 14, 2009
Ouch! Small Cars Take it On the Chin in the USA
For fans of the small car, last year's resurgence was a wonder to behold. Would Americans finally ditch their fuelish ways, relegate the Suburban to camping duty and join the rest of the world in peace and harmony?
Um, no.
No sooner could Honda, GM, Ford and everyone else ramp up production of their smaller cars then production slid off a cliff. For example, Honda sold 53,299 Civics in May 2008 and only 17,302 in December 2008, that's around a 67% drop! Of course, hardly any cars were selling in December of '08, but overall small cars have waned as fuel prices dropped.
Americans love big(ger) cars.
No mystery there. We are a big nation, a big people, with big families and even bigger gear. If we super-size the fry, it's no wonder that we super-size the Civic. Now that we're in April of '09, all the little gremlins are starting to come out of the woodwork. The IIHS has spanked small cars in their latest test, crashing them into their bigger brethren. Smart fortwo orphans clog the lots of many dealers. Pontiac has stacks of G3s sitting on the lots. Chrysler used a Fiat 500 to introduce the next Grand Cherokee.
MSNBC recently ran an article titled "The SUV is dead, Long Live the SUV." The basic point was that the recent NY auto show had a lot of SUV and crossovers on display. Bottom line, manufacturers are going to sell what consumers want to buy. Consumers want to be stylish, feel safe and have a ton of room. Guess what kind of vehicle fills the bill?
I'm a fan of smaller cars, but to be perfectly honest, I don't own one. Safety issues aren't holding me back, but frankly my need to carry people and stuff simply doesn't allow for an extremely small car.
If fuel economy is the primary concern, then many Americans can have their needs met with a hybrid offering such as the Prius or Fusion. These cars post excellent mileage numbers without robbing drivers of their apparent God given right to space. Expect models posting 40mpg + to grow in number as federal mandates continue to bear down on manufacturers to pickup their fleet averages.
I do hold out hope for the small fry of our highways and byways. Scion will more than likely try the dimunitive iQ in our market. Ford is bringing the very attractive Fiesta. Chevy will offer the sub-Aveo sized Spark. All of these offerings are hopeful of catching the public's eye. Will they entice you to buy?
Sunday, April 12, 2009
While Covering Detroit's Woes, Dutch Reporters Are Carjacked
Okay, so you can be carjacked in any city in the world What's the big deal? I don't know, I just think it's kind of sad. Full story located here. The above photo was taken in 1952 during better times for Detroit.
Fiat / Chrysler: What's the Latest?
One of my favorite soap operas these days happens to be the proposed marriage between Chrysler/Fiat. I'm not sure how many miles Fiat Chief Executive Sergio Marchionne has racked up over the past few months shuttling between Italy and the U.S. but it has to be considerable.
Given the short time frame (the end of April) the Obama administration has given Fiat and Chrysler, things must be moving at an amazing pace. There certainly have been publicity stunts. For example, Chrysler Exec Jim Press (who must be rethinking his decision to leave Toyota) driving onstage in a Fiat 500 when he introduced the next generation Jeep Grand Cherokee. Nice one.
Cerberus has basically said that it will give away its stake in Chrysler simply to be rid of it. Daimler, which still holds a small piece of Chrysler, is throwing a fit and saying that Cerberus is making unreasonable demands in its quest to acquire that final piece of Chrysler from the Germans. Nobody outside of those two organizations is quite sure what the unreasonable piece might be. Maybe an exec's head on platter stuffed with stock certificates?
While the deal would give Marchionne's company and instant presence in the U.S., one has to wonder if the management headaches would be worth it. Sure he'd get a ready made North American car company, but he'd also get a ton of ready made problems: bloated labor contracts and pension deficits, some less than desirable dealerships, irked suppliers, etc. In this climate, Fiat certainly does have options. For example, if they back out of the deal, Chrysler would almost certainly slip quickly from Chapter 11 to 7, where Fiat could pick off whatever delectable morsels it finds while leaving the unpalatable behind. Or, Fiat could pass on Chrysler and buy GM's Saturn brand. There are so many options that it makes your head spin.
One also wonders have Marchionne would keep Chrysler afloat until reinforcements can arrive. It's a joke how little Chrysler currently has in the way of future product. In good or bad times, you always need three things in the auto industry: product, product and product. How can Chrysler continue to function with such a hobbled lineup? My best guess would be massive incentives and some rushed Italian built vehicles to bolster the ranks until North American production can crank up. You know that the first people through the door to buy a Fiat 500 or going to pay whatever you ask. Sure, you'll only sell a minuscule amount, but it will be good PR. Perhaps while these folks are at the dealership looking for a 500 you can slip them a roofie and get them to sign paperwork on a Caliber?
In the end, I think the deal will go through because the alternative is simply too politically distasteful. Either way, we won't have to wait long to find out!
Abandoning Ship? Saturn Dealers Leave the Building
Just like Elvis, many Saturn dealers are choosing to head for the exits. Just how bad is it? Well, just looking at 2009 alone there were 420 Saturn dealers on January 1, 405 on February 15 and 384 on April 6*. That's a pretty precipitous decline. Okay, VERY precipitous.
I'm not sure that Saturn can do much to stop the slide, either. There are no new products and when it comes to Saturn's future, you'd have a better chance of seeing what was at the bottom of a freshly stomped mud puddle.
I've lamented on Saturn's fortunes before, so I won't do it again. If you want a nice history of the brand and its decline, check out this great article over at Newsweek. To be honest, there isn't that much to save at this point. Almost all of Saturn's vehicles are available at other GM dealerships. The more dealers that drop off the map, the less that GM has to pay off later.
Saturn dealers are being courted by companies such as the North American distributor for India's Mahindra. GM reportedly approached Global Vehicles USA Inc about selling Mahindra's trucks at Saturn dealerships, but GV had no interest, instead it will just cherry pick the dealers that it wants.
While there is a chance that Saturn will find a way to carry on, more than likely it will slip off into a heavily incentivized slumber not unlike that of Isuzu's recent exit from the U.S. passenger vehicle market.
* stats taken from automotive news article.
Saturday, April 11, 2009
Diesels? You'd Better Speak German
There was such promise for diesels. Great economy. Wonderful torque. Technology finally allowing 50 state sales. In the end it looks like only the German, and especially Volkswagen/Audi are going to be offering compression ignition to the masses here in the States. What's the dealio?
If you talk to Honda, they'll tell you that the cost of meeting 50 state emissions finally killed their efforts. However, I'm skeptical of that claim. While some precious metal costs have skyrocketed as of late, Honda had to know going in what the costs were going to be. No, I think the true killer is the massive acceptance of hybrid/electric technology. Consumers want easy to understand solutions. With hybrids that is exactly what you get: simple. Diesels are more difficult to promote. Firstly, you have to dispel all notions of the diesels of yore: no smoke and clattering engines this time around. Then you have to counter the price of diesel, which has bounced around but at times commanded a tremendous premium. Consumers ask, "Why should I pay more for a car that will cost me more to fill up and may be hard to find fuel for?"
There are ways to shift perception: getting buyers behind the wheel would do a lot. As the saying goes, "Americans buy horsepower and drive torque." Diesel engines have never ending mountains of torque. You could also adjust the fuel tax structure to give diesel an advantage, just as they do in Europe. However, I think a lot of folks are simply deciding not to bother with it all and simply run with either hybrid and electric vehicles.
With the Japanese pretty much deciding to stay out of the diesel game here in the States and the American brands with no money to fool around that leaves the Germans and India's Mahindra to offer diesels to interested consumers. According to BMW, their diesel models have not taken off and Mercedes current sells about eight percent diesel on models that have optional diesels. It's far too soon to speculate how Mahindra will fair with its diesel trucks. That leaves Volkswagen as the clear diesel winner: 30 percent of Jettas sold are diesels, an amazing 50 percent of Jetta wagons are diesels. Now there will be diesel Touaregs, which I have driven and am quite impressed with, Golfs and you'll also soon see diesel Q7s and A3s from Audi.
Going forward, I'd love to see Mercedes pull the trigger on a four cylinder diesel for our market, which looks more likely after the New York show and for BMW offer a diesel 3 series wagon (c'mon BMW, just look at the Jetta, wagon buyers want it!). I hope that VW will plop a diesel into the Passat and its new, American built sedan which will be arriving in the not so distant future. Should the Fiat/Chrysler alliance come to fruition, I'd also like to see some Italian diesel technology make its way here as well. In the past Chrysler did offer a diesel Grand Cherokee and briefly a diesel Liberty, but at the NY show, it only made mention of international diesel offerings, nothing for the home team.
There could be future advancements that help diesel's case. For example, BorgWarner's Beru unit has developed a pressure sensitive glow plug that can cut NOx emissions in half! Small engines could meet U.S. regulations with only need a particulate filter and larger motors would not need expensive urea-based injection systems. Pretty sweet! However, will such a technology arrive in time to help the diesel passenger car engine expand beyond the fringe here in the U.S.? I tend to doubt it will. I'd be happy to be proven wrong, though.
Friday, April 10, 2009
Lead-Acid: I'm Back!
Now that I've got a shiny new array of solar panels sitting on top of ACATT world headquarters, I'm trying to find ways to maximize their benefit. One such idea is to switch to an electric vehicle for my short commute to the "real job." To be certain, there are options out there already, but I'm longing for something a bit different. What could be more different than a modern electric vehicle using an array of advanced lead-acid batteries? Advanced lead-acid? Yup. Seems that researchers have found a way to breathe life into a moribund technology. How'd they do it? Foam. As in black graphite foam. Using this advanced material to swap out lead plates has a whole host of advantages: less surface area to give the same power, graphite foam doesn’t sulfate like lead grids do, the ability to both send out power and recharge is claimed to be dramatically better, and the materials involved are much cheaper than NiMH and Li-ion batteries.
Sounds great, right? So who has taken up the researchers on their offer? Electrolux is the first customer for the Firefly battery and is focusing its efforts on lawn and garden application. City buses in Peoria, Ill. are also using the batteries. No cars yet. However, who knows what other companies are doing behind the scenes?
Full story can be found here. You can find Firefly Energy's homepage here. To read up on how Oregon is trying its best to become an electric car leader, click here.
Thursday, April 09, 2009
Government Gets Great Idea: "Hey, Let's Block GM From Selling Stuff"
UPDATE: Crisis averted! An agreement has been reached and the cars will cross the block after all.
Ah, the joys of kicking a cash strapped company while it's down on its luck.
I'm not quite sure what has changed from January when GM unloaded a swath of cars from it's heritage collection at Barrett-Jackson's Scottsdale, Arizona auction, but as of now it would appear that the Feds are none to happy to see GM part with concept cars, test mules, etc at BJ's auction in Palm Beach.
If you look at any of the GM listings at barrett-jackson.com, it clearly states:
THIS IS A CONCEPT VEHICLE. NEITHER GM NOR BARRETT-JACKSON MAKE ANY WARRANTY OR REPRESENTATION OF ANY KIND, EXPRESS OR IMPLIED, CONCERNING THE VEHICLE, INCLUDING NO WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THE VEHICLE IS NOT CERTIFIED TO COMPLY WITH ANY FEDERAL, STATE OR LOCAL LAWS, RULES OR REGULATIONS AND MAY NOT BE DRIVEN ON PUBLIC ROADS. THIS VEHICLE WILL BE CONVEYED TO BUYER WITH NO MANUFACTURER STATEMENT OF ORIGIN (MSO) OR TITLE AND THE VEHICLE DOES NOT HAVE A COMPLETE VIN. SOLD ON BILL OF SALE ONLY.
That seems pretty clear to me that the vehicle is for display/off public road use only. Apparently that isn't good enough for the folks at the National Highway Traffic Safety Administration. Now here's the kicker, the Feds showed up and blocked the sale of the vehicles and then pretty much left for the day. Oh, and the Feds won't be back in the office tomorrow either. Nice. So now you've got a bunch of bidders travelling from all over the country and it would appear that many stars of the show won't be available.
Stay classy San Diego!
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Sports Car Market is reporting that midway through Friday's collector car sale, representatives of the National Highway Traffic Safety Administration (NHTSA) forced Barrett-Jackson to stop the sale of certain cars from the GM Heritage Fleet.
SCM sources say that this order from NHTSA was completely unexpected; Barrett-Jackson and GM have been extremely careful to note, in written material posted on the cars, which GM cars are sold on "salvage titles" or similar, and cannot be registered. Apparently, despite this, NHTSA is concerned that someone "might try" to register the cars for the street.GM and Barrett-Jackson are attempting to resolve this so that the cars, which have been heavily publicized and have drawn bidders from across the nation, can be sold. Unfortunately, discussions are hampered by the fact that the relevant NHTSA offices are closed for the day, and reportedly will be closed tomorrow as well.
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For those curious, the Cobalt shown above was featured in 13 episodes of the television show "Street Tuner Challenge" where it beat an 801hp Twin-Turbo Nissan Skyline and a nitrous-charged Volkswagen Jetta by 7 and 15 seconds, respectively, to take the show's top honors. It was also featured in the April 2006 "Street Tuner" magazine as well as at SEMA and many Hot Import Nights events
Wednesday, April 08, 2009
Acura ZDX Concept
I’m not screaming at my monitor “Why, oh why???” like I did when I saw the new TL, however, I have several concerns. Firstly, is the X6 a role model one should be following? I understand that Acura is going to be placing a premium price on this model. Just how much is this puppy going to cost versus an MDX?
Still, this model is more exciting than the wacko TL or snooze-fest RL. The Acura snout finally looks okay, although I’m wondering how it appears in darker colors.
The production model shouldn't stray very far from this concept. If you'd like more of a squared off hatch for increased cargo room, hang on because Honda will be offering its version, called the Crosstour, in the not so distant future. The Crosstour won't have all the whiz-bang stuff this Acura does, but it will be more functional.
2011 Jeep Grand Cherokee: "Hey, I'm Still Relevant"
I'll say this: I have always loved the Jeep Grand Cherokee. One autumn I rented a GC and headed up to Vermont for some biking around Lake Champlain, camping and a spontaneous road trip to Montreal. I remember waking up one morning, popping my head of the tent and seeing a nice coating of snow on the ground. No problem for the GC, it was strong and confident as I slopped my way down the muddy trail. I'm getting misty eyed even thinking about it...Sigh.
Sorry about that, sometimes I just get carried away by automotive memories. Anyhoo, here's the 2011 model (top photos, obviously) and she has cleaned up quite nicely. I was never taken with the current generation, so this new take on the GC is a good one: it's clean, it's functional and it's unmistakably GC.
Improved in almost every way, the 2011 model will sport richer materials and a more refined powertrains. The pity here is that this is a 2011 model, so we are a ways from seeing this on the road. Put me in for a diesel (at launch diesel will only be available for international markets), I'll figure out how to pay for it by the time they release this one in California.
SF: No More Public Pillow Fights! Easter Sunday Big Wheel Race May Not Happen
San Francisco, usually a City of limitless understanding and compassion, has started clamping down and some of the very things that make the City such a blast. First SF tried to get its mitts on the Bay to Breakers race, reigning in drinking and public nudity. Now, Chief No Fun of the I Don't Wanna Tribe is trying to require a costly permit for the loosely organized Potrero Hill Big Wheel race, in effect killing the race. The reason? Side events, such as, gasp, pillow fights, are costing the City too much money.
I have only one question to ask, "If the City can't regulate a "flash mob" pillow fight, what chance do we have against hardened criminals?"
source: sfgate
Sunday, April 05, 2009
Sell Yourself, Sell Your Grandmother: 305HP Focus RS May Be Coming to the U.S.!
Ford is looking into the possibility of bringing a high-power version of the Focus to the U.S. when the new model breaks in 2010. If you want to have your opinion heard, let Ford know ASAP.
source: automotive news
Wednesday, April 01, 2009
Volkswagen March 2009 Sales:
“Volkswagen is encouraged by how well our new products sold in March” said Mark Barnes, Chief Operating Officer, Volkswagen of America, Inc. “Our stylish CC posted its best sales month ever for the third month in a row, and our seven passenger minivan, Routan, doubled its sales over last month. Our 50-state compliant clean diesel Jetta and Jetta SportWagen continue to sell well. Next month our clean diesel luxury SUV, Touareg TDI, will be available in dealer showrooms across the U.S. We’re also eagerly awaiting the arrival of our all-new Golf later this year, which will also be available with our innovative clean diesel engine,” added Barnes.