Would you buy a hybrid minivan?
A recent article in Canada's Windsor Star discusses Chrysler's plans for two-mode hybrid and diesel minivans. Nothing official yet, but sources say that it's all but a done deal. VW could either offer the Mercedes sourced unit or stick in its own oil burner in the Routan. Toyota will most certainly be serving up a hybrid Sienna in the future and Honda could stick a diesel in its next Odyssey.
Minivans can be very thirsty little buggers in town. Our van frequently displays at 16MPG average. If an extra 2-3 grand at the outset could net a nice improvement in the city, then I'd definitely be interested.
Wednesday, July 16, 2008
Hybrid and Diesel Minivans
Tuesday, July 15, 2008
Blogger Follow-Up Call With Bob Lutz
GM offered bloggers the opportunity to have a follow-up call to today's press conference.
When asked to confirm the hold placed on the Saturn Aura, Lutz stated that it was true that the Aura will not be synchronized with the launch cycle of the Opel Insignia in Europe. The original plan had been to short-cycle the Aura, but by giving the Aura a normal life cycle GM can save some dollars. The Aura has picked up some now that a four cylinder is available.
The Buick Invicta (not the production nameplate necessarily) will be a simultaneous launch next spring with the USA and China (give or take). Lutz believes the Invicta is the nicest mid-size sedan that GM has ever done, "It's going to surprise a lot of people" Lutz quipped. The concept and production should be nearly identical.
Chevrolet Beat (Spark) as it stands is not compliant with US safety standards. The costs to make it compliant and the time required would not make sense for the first generation. GM is looking at the second generation model for the USA.
The delay in bringing the Chevrolet Cruze to market in the USA is several fold: the Cobalt is selling well and the 1.4L DI turbo mill that will launch the product is still being developed.
GMC will see smaller crossover, it will differ vastly from the next Chevrolet Equinox with which it will share its underpinnings.
Lutz continues to believe that diesels aren't going to make up a huge piece of the US market. The added cost of emissions equipment and their adverse effect on fuel economy combined with higher diesel prices make it less advantageous.
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The delay in the Aura has been explained, but is there a subtext? There will be a cost savings but also some breathing room to further analyze the market for Saturn. Lutz has said that GM does like the brand and that it attracts a different type of customer. However, with sales being less than expected after a full model makeover, one has to wonder how much longer GM will minister to its baby. My thoughts are that Saturn is a few marketing dollars and a longer warranty away from being somebody. My experience with the Astra showed that the public is woefully unaware of what Saturn is currently offering. If GM can successfully tell the Saturn story and give buyers a reason to buy an Aura over a Malibu or an Outlook instead of a Traverse then I think they can make a go of it. The problem is that marketing budgets don't grow on trees and Saturn has to be selective on where an how it presents its brand to buyers.
I was disappointed to hear that the Beat will not be coming to the US market in the near future. I had hoped that the Beat would have been designed with US standards in mind--something that GM is now doing for most of its platforms going forward. How quickly can GM get a Beat or Groove into dealerships?
Lutz has very strong feelings on diesels. I'm reminded that Lutz also had very powerful feelings about hybrids as well and later changed his tune. Most of the time Maximum Bob does have a vey good sense of the market, but I do hope that GM does not get too far behind the curve with regards to the US diesel market. Lutz pointed out that GM has a wide range of diesels in foreign markets, but as we have seen with the Beat there can be a punishing delay in bringing any foreign product up to US spec. VW is reporting a strong order bank for the TDI Jetta sedan and wagon, but there is likely a pent up demand for such a car from previous owners. I'd wager that Mercedes will see a similar initial surge once its diesel vehicles are 50 state legal. BMW is bringing a very strong, powerful diesel motor to the US--how successful this strategy will be remains to be seen. I'm very anxious for Honda and Nissan's diesel offerings to bow. Recent word has it that Chrysler will also offer a diesel minivan, a very interesting concept for a minivan fan such as myself.
Yeah, About that Huntsville story: VOLKSWAGEN ANNOUNCES IT WILL PRODUCE CARS IN CHATTANOOGA
VW Newsroom: VOLKSWAGEN GROUP OF AMERICA ANNOUNCES IT WILL PRODUCE CARS IN CHATTANOOGA; DECISION MARKS COMPANY’S ONGOING COMMITMENT TO NORTH AMERICAN MARKET
"Volkswagen Group of America, Inc. announced today that it will build a U.S. automotive production facility in Chattanooga, Tenn., where it will produce a car designed specifically for the North American consumer and invest $1 billion in the economy. The announcement is an important element of the company’s overall U.S. strategy of connecting with its customers, increasing its competitiveness and tripling its U.S. customer base in the next decade."
GM News Conference
Yawn...It's wicked early out here on the West Coast. To view updates, just keep hitting refresh. Please keep in mind that this has been typed as it occurs. There may be clarifications later on.
5:30AM - Employee broadcast has started.
5:32AM - Recapping previous announcements: Chevrolet Cruze, Next Gen Aveo, New, Efficient Engines, 4 Plant Closures, Review of Hummer
5:35AM - Operating Actions (10 Billion Cash Improvements end of 2009) Further reduction of truck capacity by 300,000 units by the end of 2009. Reduction/consolidation of promotional budgets, motorsports. Holding engineering budgets to 2006-2007 levels. Early ret, mutual sep, normal attrition. Health care coverage for U.S. salaried retirees over 65 will be eliminated, effective January 1, 2009. Affected retirees and surviving spouses will receive a pension increase from GM's over funded U.S. salaried plan to help offset costs of Medicare and supplemental coverage. No base compensation increase 2008/2009. No cash bonuses for executives. Limiting corp. capital expenditures. Delaying next gen full size pickup/suv, V8 engines development. Increase powertrain for small displacement, alt. fuel.
5:40AM - Deferring payments into the UAW VEBA trust until 2010. DIVIDENDS SUSPENDED IMMEDIATELY on common stock
5:42AM - Asset sales are being considered. Hummer being reviewed.
5:44AM - Sum total adds up to $15 billion in added liquidity.
5:45AM - Let's accentuate the positive. Chevrolet Cruze mid 2010, Equinox May 2009, Next gen Caddy SRX second quarter 2009, Cadillac CTS sportswagon next spring, CTS coupe summer 2009, Buick Invicta next spring, Saab 9-4x fall 2009
Below are images of the bullet points from today's announcements. Click to enlarge.
6:01AM - News Conference has started.
6:03AM - Recapping what we've already covered. Q&A coming up.
6:06AM - Question: Are you really aiming at the bottom? Answer: 14 million for 2008 and 2009 is on the very conservative side.
6:10AM - Question: White collar layoffs, involuntary? Answer: Vast majority will not require involuntary layoffs. We'll see how it goes.
6:12AM - Additional plant closures from component manufacturing? Answer: Early June announcements will be pulled forward.
6:15AM - Any message to the retirees who will lose health care? Answer: There will be a pension increase to help mitigate this, but no doubt it was a tough decision.
6:23AM - Future product questions. Chevrolet Cruze 1.4 Liter Turbo will get 9 MPG better than the Cobalt. Chevrolet Equinox 2.3L Direct Injection should be class leader.
6:32AM - Marketing cuts. Answer: Products like the Malibu and Vibe show the way. Motorsports will see cuts as it no longer speaks to the customer.
6:35AM - We've heard about Chevrolet, what about other divisions? Answer: Franchises will be abundantly be provided for. BPC will see sister (highly differentiated) to the Equinox. Caddy future lineup will have some modifications given today's climate. Product program has essentially been spared.
6:46AM - How do you make a profit on small cars? Answer: Now there is demand for smaller cars. Average transaction price is going up. Leaner in structural and fixed costs.
6:52AM - That's all folks! HOWEVER, please stay tuned as ACATT has a little something extra planned for today.
Monday, July 14, 2008
Wagoner Prepares to Talk Turkey
GM has sent out an advisory that Chairman and CEO Rick Wagoner will hold a news conference tomorrow, Tuesday, July 15 to discuss actions the company is taking to align the business to current market conditions. Before speaking the media, Wagoner will address GM employees in a twenty minute broadcast. Automotive News is citing sources that claim the address will be upbeat in nature. With its stock being hammered and bankruptcy rumors popping up like whack-a-mole, Wagoner has to get out in front and address both the troops and the media. GM shares rose in after-hours trading Monday likely in anticipation of the realignment announcement.
Look for Ford to conduct a similar conference at some point this month as well. There should be news from the blue oval about its plans to bring its European lineup to US showrooms.
I doubt that tomorrow's conference will be like the above video, but any chance I get to post a video of Amy Poehler's Kaitlin character, then I'm going to take it. Rick,Rick,Rick!!!
Fiesta Hatches-A-Go-Go
7/24/08 Update: It's settled, we are getting the sedan and five door model.
7/14/08 Update: Automotive News has published its annual "Future Product" summary for Ford and the Fiesta is listed as having two body styles planned: a sedan and a five-door hatchback. This is interesting because there has been such uncertainty about the hatch version. In case you've missed the circus of events, let's recap. Autoweek ran a story quoting Automotive News which in turn quoted a Ford of Mexico official who said that the US would get both three and five door hatches. Then Automotive News ran a story that said it was unclear whether the hatch will be a three or five door model. I called Ford PR for clarification and was told that there would be no official announcement for quite awhile. I have speculated that it might not be until November, 2009's LA Auto Show before we find out. Now Automotive News appears to be under the impression that it will be a five door hatch that will arrive in showrooms. Could the author have been confused by the news that the next generation Focus will be offered as a sedan and five door in the USA? Skipping the three door model would seem to fly against the belief that the Fiesta could have some tuner potential. I'm all for the five door because I have a family, but I could see a lot of first time buyers not wanting the extra set of doors. I'm sure that we'll be revisiting this issue again before the official announcement.
6/4/08 Update: There has been some confusion about the Fiesta hatch model that will be launched in the United States. Based off the AutoWeek story, which quoted Automotive News which quoted a Ford official in Mexico, the US will get both the three and five door hatches. HOWEVER, every other story I've read has simply stated that the US will get a hatch but that it was not officially announced which configuration it will be. To get to the bottom of the issue, I called Ford PR and spoke with Said Deep, Ford North America and Global Product Communications Manager. The official line is that no announcement has been made as to which hatch(es) will be made available in the US market. Given the 2010 release date for the Fiesta, don't look for anything official until the end of 2009 at the earliest. I'd peg the official announcement at 2009's LA Auto Show. I'd also venture a guess that the US will get the three door and not the five door at least initially. I would estimate that the Mazda2 would have a better shot at launching sedan and five door variants in the US market.
Original 5/30/08 story:
I'm might drug addled, but I can still celebrate the announcement of a new hatchback for the US market. Automotive News/AutoWeek is reporting that Ford will not only bring its Fiesta sedan and three door to the US but also the five door. It had been anticipated that Ford might bring the three door hatch, but up until recently the five door's chances were considered slim. Some had speculated that Ford was leaving the five door space for the Mazda2, but perhaps now we'll get both.
The Automotive News story (sub required) points out that the three door will be an "entry level model" and that is a bit troubling for me. I would like to see the hatches available with the full slate of options.
Sunday, July 13, 2008
Rest Stop Bathrooms: Don't Take the Fifth
On our way home last night we stopped at one of the many fine rest areas along I-5. I really got a startle in one of the men's rooms, not because I ran into Larry Craig or anything like that but rather because someone had polished off a fifth of Bacardi and left it on top of the urinal. Now I suppose it could have been a passenger or the bottle was almost empty and someone just needed a little nip, but it still gave me chills. For the rest of the night I kept looking for a driver weaving between lanes on the freeway.
Ford RWD Sedan May Not Be Back to the Future
Any G8/300 competitor coming from Ford in the USA is under the microscope. In fact, the car might have been squished by the cover slip. While a muscular, rear wheel drive sedan might have looked good from afar, given today's market it's far from good. There's no final word yet on the fate of such a vehicle, but look for more news soon.
Saturday, July 12, 2008
Win a Honda Pilot (8/15/08)
Rights to Name Child Go For $100 Gas Card
It was a typical stunt by a radio show: we've got a $100 gas card, what are you willing to do for it? There were offers like free landscaping, a stuffed animal collection and a maid in skimpy outfit, but one caller was willing to let the hosts name his unborn baby. We have a winner.
No matter what your business, free gas is fast becoming the number one way to win customers. Take for example the 'Shady Lady Ranch' brothel in Nevada. Spend $300 on their services and get back a $50 gas card.
How about the Florida lottery's "free gas for life" Summer Cash contest. You could win 26 $100 gas cards for each year you live. $2,600/year for life just doesn't have the same pizazz to it. Cost of the ticket? Your soul. Well, actually it's five bucks.
A quick Google search yields tons of free gas promotions. Like everything else, the craze induce by these gimmicks will fade with time. As I ponder my family's long trek down I-5 tomorrow, what would I do for free gas? None of the above, I can tell you that.
photo credit: Malin Arnell
Friday, July 11, 2008
What's Up Doc? 2009 Acura TL First Pic
Is it just me? From a features standpoint the TL has always presented a compelling package. Now that SH-AWD is available the TL only becomes more interesting. However, when it comes to the new grille, I'm less than impressed. We've only been allowed to see one picture, so that leaves a lot to the imagination. Hopefully different colors, angles and lighting will improve things.
As a reminder, I'm on vacation so posting is going to be limited. Have a great Friday!
photo source: hondanews.com
As a reminder, I'm on vacation so posting is going to be limited. Have a great Friday!
photo source: hondanews.com
Thursday, July 10, 2008
Why I Outta....USA's 335d Will Be Automatic Sedan Only
My joy over the fact that we are finally getting the potent 335d diesel here in the States has been somewhat dulled by the fact that it will be sedan/slushbox only. Was it too difficult to certify a manual 335d? Why not show wagon fans some love? Being a wagon-aholic I wanted a manual 335d wagon. Nevertheless at least we are getting a diesel BMW.
If I'm being completely honest, I'd really like to see four cylinder diesel from BMW hit our showrooms. Certainly such a car would not be able to pull a tree stump out of your front lawn like a 335d would, but you'd be thumbing your nose at everybody with your superior mileage and lower MSRP.
Model year 2009 will also usher in some styling changes and in car entertainment improvements but I'll let the good folks over at Autoweek tell you all about that.
$5.21 A Gallon? Yeah I'm A Dum-Dum
It's hot, 90+ degrees. I've just sold my scooter and am feeling really bummed. The wife and kids are at a toy store and they too are hot. I'm running late. I need gas. Suddenly, like an oasis, a Shell station appears. The price for regular ended in .21 and I could have sworn the number in front was a 4. I chuckle at my good fortune and swoop across several lanes to make the turn. As it sit at the traffic light, it occurs to me that if this station was such a bargain it should be swamped as other stations in the area were around $4.50. Good thing my tank is completely empty I thought, this is going to be soooo good. As the pump rockets past $80 with no end in sight, I begin to wonder why $4.21 isn't such the deal I thought it was going to be. Why can I hear crickets chirping at this station? Suddenly, like a sucker punch to the gut, it hits me. I'm paying freaking $5.21! Doh! My slick deal has suddenly cost me an extra $12 and all I got for it was this lousy blog post.
ACATT is on the road today so don't expect much in the way of new material. Have a happy Thursday everybody!
Great big cherry Dum-Dum Photo Credit: Mike Johnson
Wednesday, July 09, 2008
Win a 2008 Saab 9-3 2.0T SportCombi (7/27/08)
It's vacation week here at All Cars, All the Time and you know what that means for you? That's right...Another lousy sweepstakes! Click here to win a Saab SportCombi. You need a code word to enter the sweeps. I used the code word 'yellow jersey' and my entry was accepted.
There are many ways to get a code. One of the easiest ways is to e-mail Flytothefinish1@comcastnets.com with "VERSUS TDF Daily Code" in the subject line and a code word will immediately be sent to you via e-mail. Of course, you'll probably want to use a disposable e-mail address if you do send in for a code.
Don't forget to set your DVR for CLICK & CLACK'S AS THE WRENCH TURNS, premiering tonight, July 9, 2008, 8-9 p.m. ET on PBS."
Why Did The 38-Year-Old Cross The Tracks? Statistically, He Didn't
Washington City Paper: The Straight Dope: This Thing Corners Like It's on Rails!
A stalled car at a train crossing: a cliched scene in many a movie, but how often does it happen and to whom? First, the good news. As a percentage of all crossing accidents, stalled vehicles hit at train crossings dropped from 15.8 percent in 1975 to 5.7 percent in 2005. The bad news is that if you're a 38-year-old male, then you are ripe for just such an accident. The above linked article has all the particulars and breaks down the various types of stalled car scenarios.
Opel Workers: Kiss Our Astra
News Strike hits Opel in Antwerp - News from Belgium - Expatica
Line workers at GM's Opel manufacturing facility in Antwerp, Belgium went on strike to demand an extra eight seconds to complete work on each car. Apparently arrangements had been made to allow workers the extra eight seconds, but then management cut the extra time down to five seconds. Once the strike started to grind the entire factory down to a halt, an accord was reached and the eight second increase was back. Too bad Saturn can't sell an Astra in eight seconds.
LaNeve Assures Dealers 'We're Only Selling Hummers'
...wait, that didn't sound right ;-) GM's North American sales chief Mark LaNeve moved quickly to quell concerns that more than one GM brand is on the chopping block. This move is in direct response to a WSJ article that suggested the only safe brands in GM's stable were Chevy and Cadillac. Props to LaNeve for getting out in front of this story, but still one wonders what is going on with the Saturn Aura development freeze. If I wasn't sporting either a bow tie or a crest, I'd still be mighty nervous.
photo source: GM
Tuesday, July 08, 2008
Hands-Free Humor
Okay, okay...So the video automatically playing every time you loaded this site got annoying. Fast. I'm sorry to all of you who either complained or muttered unkind things about ACATT. You can still view the video by clicking on the link below.
I found this video over at CNN's iReport. I got a pretty good chuckle out of it. Hope you enjoy it as well.
ACATT Says: I Told You So (About Chevy Volt Debut)
I had to chuckle when I cruised over to Autoblog today and saw a post linking to a Reuters story about a September debut for the Volt. Back in May of this year, I mused on the possibility that GM would show the Volt during its centennial celebration with a quick follow-on at the Paris show.
I normally wouldn't crow about such things, but as it so happens I'm running late on some other projects and don't have that much time to write about anything else.
Monday, July 07, 2008
GM Division Rethink
GM Weighs More Layoffs, Sale of Brands - WSJ.com
I've often mused on what will befall GM over the next few years. Headlining the Wall Street Journal today is an article titled 'GM Weighs More Layoffs, Sale of Brands.'
Now, it's no secret that most people think that GM is overladen with brands. Hummer has been making news lately as a brand under careful review. It was also recently reported that the Saturn Aura has been delayed, leading to questions about that brand. The WSJ quotes an insider source that said the Aura was delayed while 'management reviews whether it makes sense to continue investing in the division.' I'm sorry to hear that Saturn is supposedly under review. I really like the current Saturn lineup, although it is very difficult for Saturn to make headway when Chevy gets a copy of Saturn's best models. I'd be very curious to see how the Astra would do at a Chevrolet dealership--I'm betting that it would selling much closer to its original sales targets. If Saturn did die, there wouldn't be much to save: the Aura has been bested by the Malibu, the Outlook will undoubtedly be stomped by the Traverse, Sky buyers would simply buy a Solstice, the Astra could be integrated as a hatch version of the Cobalt or G5 (ala Mazda3) and the Vue would be given to GMC. Of course, I think Saturn could still be saved by differentiating it with a stronger warranty or included maintenance.
Certainly the "stand alone" brands would be the easiest to cast off: Hummer, Saab and Saturn. Hummer is probably the most saleable and has the best chances of making it on its own. Saturn could be a buy for an automaker looking for a ready-made dealer network here in the States and the same is true to a lesser degree for Saab.
Would GM be stronger if it were only a two or three brand manufacturer? Yes, I think that would be the case. However, the costs associated with slimming down could be too much to bear. I'd tell Hummer "it's been real" and send them to the highest bidder and get a sense for interest in the Saturn and Saab dealer networks. Pontiac had a great RWD performance strategy before the oil shock, but now this brand may need some tweaking. GMC is also going to have to make some tough decisions as it sorts through its deadwood. I'm just not convinced that Buick can become relevant to younger buyers, but the Enclave is a great step in the right direction.
And so the market turns...I think GM definitely has to throw some brands into the water if for no other reason than to satisfy Wall Street. It's not going to be easy or inexpensive to do so, but if GM can get a handle on which divisions make sense going forward then it will all be for the better.
photo source: general motors
Sunday, July 06, 2008
Trapped Under A Car--Too Old To Drive?
JS Online: 91-year-old Greendale woman trapped under car for two days
It's not a decision I look forward to: When do I tell my family members that they are too old to drive? The loss of freedom is something that doesn't sit well with many seniors who continue to drive well after they should have already hung up the keys. Take for example this 91-year-old driver in Wisconsin who became trapped under her car for two days while looking for her keys. The keys were never under the car in the first place, but rather in the car's door. A concerned mailman noticed that the woman's mail was piling up and called the police who kicked down the door and rescued the woman. Should this woman still have driving privileges? How best do we judge when a person no longer has the full capacity to drive? Please note that the photo is not the driver.
photo source: Jorc Navarro
Never Mind the McMuffin, The SX4 Sports a Decent Navi
Suzuki finds its way
Apparently Detroit News writer Scott Burgess never travels anyplace that he hasn't been before and therefore doesn't feel the need for a navigation system. Oh, and Burgess also eats junk food and then tries to hide the evidence from his wife.
What's that got to do with anything? This week Burgess reviewed the Suzuki SX4's new standard equipment navigation system and guess what? Mikey likes it. The review confirms my belief that Suzuki has a real winner with its new Garmin sourced unit. You can remove the unit and take it with you and then click it back in for a charge. An added bonus is that it integrates with the stereo so that it will lower the volume when it wants to chat with you. Upgraded trim packages will sport such goodies as Bluetooth, real-time traffic, local events, weather forecasts and a gas price finder.
You can read Burgess' full review by clicking on the above link.
photo source: American Suzuki Motor Corporation
Saturday, July 05, 2008
Old McDonald Had Some Switchgrass...
Cellulosic ethanol farm gets started - Green Machines- msnbc.com
An experimental farm in the Oklahoma Panhandle is being planted with switchgrass with hopes of one day providing a new feedstock for ethanol production. We've already heard the litany of complaints against corn. The upside with switchgrass is that it is noncompetitive with human food sources and it is a pretty tough plant (I could use more of that quality in my landscaping). A biorefinery should be up and running by 2010 with the dream of achieving switchgrass-based ethanol by 2017. I'm a big fan of switchgrass, but like so many other promising new fuel sources any real impact is years off.
An experimental farm in the Oklahoma Panhandle is being planted with switchgrass with hopes of one day providing a new feedstock for ethanol production. We've already heard the litany of complaints against corn. The upside with switchgrass is that it is noncompetitive with human food sources and it is a pretty tough plant (I could use more of that quality in my landscaping). A biorefinery should be up and running by 2010 with the dream of achieving switchgrass-based ethanol by 2017. I'm a big fan of switchgrass, but like so many other promising new fuel sources any real impact is years off.
photo source: wikipedia
Transporting $4.7 Million In Weed? Stay in Your Lane
Naperville Sun: Driver Arrested With $5 Million in Pot
This has to be the most expensive improper lane change that anyone has ever made. Police discovered 104 pounds of hydroponically-grown Mary Jane in Erjon Ruci's Mercury Grand Marquis after pulling him over for a lane violation. Ruci could get a 16-year prison term and a $30,000 fine, but something tells me that whoever he was working for is going to extract a bit more than that.
Win a Vespa LX50 (7/14/2008)
Okay, here's another "heads up" sweepstakes for you. This contest is offered by Maybelline and you're not just entering to win a Vespa, you're also entering for chance to win a year's supply of lipcolor. You "need" to be involved with a wedding.
I know that I've lost many of you already. However, the rules say the sweeps is open to legal residents of the 50 United States and District of Columbia with a valid U.S. driver’s license who are at least 18 years old as of the date of entry. Say that you're a guest for a wedding a make up a date.
Only you can decide if this sweeps is worth your trouble. Click here to enter.
Friday, July 04, 2008
Huntsville, Alabama To Get VW Plant?
Report Says Huntsville Will Land Volkswagen Plant WDEF News 12 News, Weather and Sports for Chattanooga and the Tennessee Valley
Station WDEF is quoting a "Metal Bulletin Limited" report that states VW will choose Huntsville for its vehicle plant. Supposedly VW wants to tap the "better-educated" workforce surrounding the Huntsville Space Center. At this point, you're reading third hand information, however this would jive with earlier reports that VW was favoring a southern location.
The photo thought bubble is a play on Huntsville's slogan "The sky is not the limit!" which is a reference to the Space Center.
Sobbing About Saab
Dave Newhouse: A Saab story - Inside Bay Area
On this July fourth, I thought I'd call to your attention an article by a local writer (link above). Being a recovering Saab owner myself, I can certainly sympathize with Newhouse's experience. Newhouse says that Saab, loosely translated, means "electrical disaster." The uplifting part of this story is that Newhouse formed a connection with his service writer, something that I was never able to do with mine. Where my Saab relationship ended in acrimony, his ended in the simple realization that his Saab was simply too expensive to maintain. Newhouse followed his service manager to Toyota where he bought a Camry. Talk about a sea change!
Going forward Saab has a new raft of products. Soon we'll have the next 9-5 and a crossover will replace the dismal 9-7x. A smaller 9-1 should also added to the mix in a few years time. Will these new products have fewer "sob stories?" Yes, I think that Saab is getting its house in order. My friend's 2004 9-3 has experienced far fewer troubles than my 2002 9-3 Viggen did. Sure his alarm occasionally goes off while he's driving, but to experience a completely gremlin-free Saab would go against the grain.
photo source: mother jones photo essay "sea change"
Thursday, July 03, 2008
Reminder: Chrysler Shutting Down Most Ops for Two Weeks
I'll be honest that I had forgotten about Chrysler's corporate-wide shutdown that will begin on July 7 and last for two weeks. Virtually all salaried and hourly workers would be required to use two weeks of their vacation time. A media advisory was just sent out today regarding the shutdown so I thought I'd post about it. Chrysler chief Bob Nardelli said the move is needed to help the company create "efficiency across organizational lines and boost productivity." Don't worry, Chrysler dealers will still be open for business.
I'm Fifty, Fifty Years Old (Nothing to Do With the Story)
Buzzwatch : Idea Watch: 50 Things Being Blamed on Rising Oil Prices
Okay...I'm not really 50. But just like Sally O'Malley, who's 50 today (actually she's 50 everyday), WSJ's Buzzwatch has collected 50 things being attributed, at least in part, to high fuel costs: most costly tires, frustrated Kangaroo harvesters, green eggs and ham, it's all there! Click the above link to checkity, check it out.
Maybe It Can Fly As Well? "110 MPG Mustang"
Engineer Gets 110 MPG Out Of '87 Mustang - Automotive News Story - WKMG Orlando
"Pelmear, who lives in Napoleon, Ohio, has tweaked his Mustang to get 110 mpg, making the engine nearly five times as efficient as a traditional gas engine, he told the Toledo Blade newspaper"
Yeah, what's great about this article are all the factual details: NOT. All sorts of folks, making amazing claims, come out of the woodwork at a time like this. I guess there are a few chuckle points: "400 horsepower, goes well over 100 mph and can go from zero to 60 mph in three seconds" and yet capable of 110MPG. The above photo is a random picture, not the "110 MPG" model.
Britain's Worst Car
Britain's worst car
Auto Express is being a bit tricky with this "vote for the worst" competition as they are also signing you up for a mailing list if you enter your details. Now, what you're signing up for isn't the worst thing in the world, it's Dennis Publishing's new online auto magazine iMotor. I've signed up for this new magazine myself so it's no big deal to me. There are also some prizes to be given away, but I'm not sure that US residents qualify. Now, getting back to the cars: there is a shortlist for the "10 most terrible made-in-the UK monstrosities." You can have a go at it by clicking the above link.
Car Salvaging May Salvage Memories of My Youth
Do-it-yourself salvage yards grow popular
"They're among a growing number of do-it-yourself salvage yards, a trend that comes as scrap metal prices soar, making the business far more profitable than it once was."
When I was a pup, I enjoyed the occasional visit to a salvage yard for the chance to look over the amazing collection of old cars and trucks laying about. As I grew older, I noticed a disturbing trend: Some salvage lots were disappearing and others became "pre-pulled" kind of places where you couldn't wander around yourself. I didn't like those developments at all.
Detroit News has an AP story about the growing popularity of DIY salvage yards. Recently I posted an articled entitled "Scrap Is No Longer Crap" and these yards are a directly related to that: scrap is worth more and people are trying to be more frugal. I look forward to taking my kids to a junk yard someday and hope they enjoy seeing automotive history in its most gritty form.
$10
Right now you can scoop up an even lot of 100 GM shares for around $1,000. The current share price is way off the company's 52 week high of $43.20. GM got a slight boost when it announced that its June sales numbers weren't as bad as expected, but then lost of that momentum when a negative report came from Merrill Lynch. What can be done?
I think GM needs to get the word out on future product--not just the Volt. Yes, there were some announcements at its shareholder meeting, but I think GM has to go further. Industry analysts and journalists need to once again be lead through the design studios and shown what is coming. If the Chevy MPV-7 is a reality, if that vehicle can achieve 30+ MPG then GM needs to tell analysts about it now. If the Beat is going to be sold in the USA then it needs to be confirmed.
GM has to get people talking about all the good things and stop focusing on the SUV body count. Maybe GM even has to offer teasers to the public: jingle the keys and maybe the baby will stop crying. I think the ideal springboard for all of this is GM's 100 year celebration. Remind folks of the good times and then show them what the future will hold.
Other ideas for slipping sales? Low APR and rebates have lost their luster. I'd try adding value. How about enhanced bumper to bumper warranties for everybody?
"We have confidence in America, You Can have Confidence in Us: 5/60,00 Bumper to Bumper"
"Value isn't optional: $1,800 in extras now included"
"Maintain Strength: Scheduled maintenance now included 3/36,000"
"Make it your ride: $1,200 in dealer accessories included"
To gain extra traffic into showrooms, why not offer another car sweeps: "50 cars for 50 states, every month"
Give buyers' an incentive to take a spin: "Our product is our bond, $50 savings bond for taking a test drive."
Those are some ideas that came to me while sitting on the couch. I'm sure that marketing experts can come up with much better concepts. The bottom line is that GM has to change the topic of conversation.
Wednesday, July 02, 2008
10 Things You Can Like About $4 Gas
10 Things You Can Like About $4 Gas - TIME
Time magazine has amassed a list of ten things that could be taken as positive benefits of higher gasoline prices. Less congestion/pollution, more goods made in the USA, four day workweeks, etc...You can read all about it in the above link.
Silver lining? Maybe aluminum foil. The waves from this incredible oil shock are only beginning to ripple through the economy. Furniture made in the USA and thinner cops just aren't enough. If oil continues to trade in this band or reach even higher it's going to be a painful adjustment for everybody.
Hella Cool: Hella LED Daytime Running Lights
Hella LED daytime running lights Auto Express News News Auto Express
Don't want a new Audi (pictured above) but still hanker for sexy LED DRLs? Hella has the answer in the form of its LEDayLine product (top photo). I'm not sure if they are available in the US, but you could get some shipped over here if they are not. I can't see how these lights would run afoul of any laws, especially since Audi's are sporting them already, but our country does have some regulatory quirks when compared to the EU.
Bluetooth Bandits Nab Hands-Free Skip iPods / GPS
abc7news.com: Bluetooths stolen from two San Jose stores 7/02/08
"Thieves stole all but two Bluetooth head sets from a Radio Shack in San Jose. At 3:30 am Wednesday morning someone broke a window and unlocked a door to the store. The thieves apparently overlooked several iPods and GPS navigation systems, but did grab about every Bluetooth in the store."
We're only at day two of the hands-free law and already violence is breaking out!
The above photo was taken at the UPS first flight ceremony at Nagoya for the start of their Anchorage to Nagoya and Nagoya to Shanghai routes. As chance would have it, the first-ever A380 flight to Japan, a Singapore Airlines flight from Changi to Narita, was diverted to Nagoya because of bad weather in Tokyo. A Boeing Large Cargo Freighter made its scheduled arrival to ferry out 787 components, just as the A380 was departing for Narita. The result is a picture of the largest passenger plane and largest freighter together.
If you have even a passing interest in the manufacturing side of planes, then an occasional stop at Flight Global's Flight Blogger should be on your list. You'll see interesting stuff like the above photo and stay informed on such things as the 787 Dreamliner saga.
source picture and caption: FlightBlogger reader EW
Tuesday, July 01, 2008
Chrysler: Sales Are So Overrated, But If You Must Know Our Numbers Were Down a Little
Chrysler June Results Media Release
"Chrysler LLC today reported total June 2008 U.S. sales of 117,457 units, which is 36 percent below the same period last year. Total June sales reflect a continued contraction of the market, especially of pickup trucks and SUVs, continued reductions in fleet sales, and increases in Chrysler’s newest highly fuel-efficient vehicles. All sales figures are reported as unadjusted"
The only thing more out of style than Chrysler's current lineup is perhaps this shaggy goat coat. We all knew that Chrysler was going to crater, so no real shock today. Let's focus on the positives: The Jeep Patriot posted sales for June of 4,889 units, up 6 percent compared with June 2007 sales of 4,633 units. Interestingly both of the Patriot's sisters, the Caliber and Compass, were down. The Town & Country and Grand Caravan were also up. What else can be said? Full corporate spin is available in the above link.
Market Cuts Losses Due to Stronger Than Expect GM Sales
US STOCKS-Market cuts losses on GM's June sales Markets Bonds News Reuters
"U.S. stocks cut losses on Tuesday, after General Motors reported stronger-than-expected June sales, somewhat easing concerns about the impact of high fuel prices on profits."
When is a an 18.5 percent (unadjusted) sales decrease a good thing? When analysts were expecting an even higher number. This makes Ford the older brother who comes home with an F on the report card and catches your parent's wrath. By the time you walk in the door, your D+ suddenly doesn't look that bad and you emerge relatively unscathed.
Chevrolet Malibu total sales were up 95 percent with retail sales up 129 percent, Cobalt sales were up 37 percent total and 27 percent retail, HHR was up 39 percent total and 70 percent retail, Equinox was up 64 percent total and 42 percent retail. Cadillac had a strong performance with CTS total sales increasing 31 percent and a retail increase of 10 percent compared with the same month a year ago. SRX and STS both had 26 percent total sales increases. Sadly, Saturn only shifted 888 copies of the Astra.
You can view GM's full report by clicking here.
Honda June Sales: In Your Face! (Yes, They Were Up)
Honda Media Newsroom Release: American Honda Reports Record Sales in June
"American Honda Motor Co., Inc., today announced total June sales of 142,539, up 13.8 percent on a daily-selling-rate basis, setting a new record for the month. Reflecting a shifting automotive marketplace, total car sales set a new June record for the first time since 1990 at 97,639, up 34.2 percent versus last year. Year-to-date American Honda sales are up 4.8 percent to 798,358."
The Fit was up 100.5% when comparing June '08 to June '07. The Accord was no slouch with a 54.5% increase and the Civic posted a 23.1% bump. Honda's long cultivated reputation for fuel economy is paying massive dividends for the brand. Now how about bringing the Japanese domestic market Stream over here? Full details in the link above.
Speculation That Speculators Aren't Responsible for Nuthin'
Don't blame speculators for rising oil prices - The New Yorker- msnbc.com
"Speculators, by contrast, mostly use futures contracts to gamble on oil prices, and have no interest in buying or selling real barrels of oil. These gambles can be tremendously lucrative, but they don’t directly determine the real (or “spot”) price of oil. That’s set by the people who are buying and selling actual barrels of petroleum. Although speculators could directly distort oil prices by turning their futures contracts into oil and then taking it off the market to drive up prices, a look at oil inventories shows no sign that this is happening."
I'm not market savvy enough to know if this editorial makes a valid point. Personally, I hold Matthew Lesko responsible for all of this mess. Why? Ask his question mark suit.
Ford Sales Are Up...Just Kidding, They're Down
Media.Ford.com: FORD REPORTS JUNE, FIRST HALF SALES
"Ford, Lincoln and Mercury June sales totaled 167,090, down 28 percent versus year ago."
We knew it was going to be painful so let's just get it out of the way: 28 percent. Now, on a positive note Focus retail sales increased 53 percent versus a year ago and Focus was the top-selling domestic car to retail customers. You can click the link above to get all the sales particulars.
What the People Want: VW Sales Up
VW Newsroom: VOLKSWAGEN REPORTS JUNE 2008 SALES
"Volkswagen of America, Inc. today announced June 2008 sales of 23,208 units, a 0.3 percent increase over the June 2007 sales of 23,137 vehicles. On a year-to-date basis, 2008 Volkswagen sales remain 0.6 percent ahead of 2007 sales through June. June reflects Volkswagen’s best sales month since August 2006. The Passat wagon had its best sales month since January 2007 with sales up 25.9 percent over June 2007. Volkswagen’s innovative coupe-convertible-sunroof Eos continues to be a summertime top-seller with sales of 1,632 unites, up 14 percent over last June."
Any ray of sunshine in June's sales numbers has to be regarded as a good thing. Congrats to the Passat wagon on an excellent sales month. When a wagon wins, we all win even if it is only 142 extra units.
iMOTOR Magazine
iMOTOR
Another way for the motorhead to waste time online. Here's a digital magazine like Winding Road from the publishers of Auto Express, Evo and Octane magazines. I used to subscribe to the UK's Auto Express but the overseas shipping was killing me as the yearly subscription rate was around $300. I like "free" a whole lot better. Click the above link to sign up.
Cars Detroit Should Build
Three Vehicles Detroit Should Build
WSJ writer Joe White penned an article recently talking about three vehicles Detroit should build:
A seven passenger family vehicle that gets 30 miles to the gallon on the highway.
A midsize sedan that gets 40 miles to the gallon on the highway -- and doesn't cost much more than a Chevy Malibu, Ford Fusion or Toyota Camry.
A pickup truck large enough to do real work and comes close to 30 miles per gallon on the highway.
For the sake of discussion, let's look at the seven seater. Right now a buyer would be hard pressed to find such a vehicle, but could come close with a Mazda5 or Kia Rondo which achieve 28 and 26 MPG on the highway. What can Detroit offer?
A Dodge Journey gets 25MPG. Could some tweaking get that number a little higher? On the Ford side, I'd love to see the European S-Max make it over here. Now I'm just dreaming but bring the S-Max with a diesel and you've got a great looking vehicle with great looking mileage numbers.
The real dragon slayer, however, could be Chevy's forthcoming MPV-7. This smaller than Traverse offering could theoretically be paired with a 1.4L direct injection turbo that could produce excellent mileage numbers. Of course, this is all hypothetical since the vehicle isn't confirmed for our market. Given today's fuel prices, I would be shocked if Chevy passed on this one.
My own white whale is a diesel minivan but I'd wager that almost every driver wishes his or her current ride did a little better in the mileage department. I know I miss my old CRX HF with its nearly 60MPG highway numbers. Sure the engine sounded loud enough to be next to you and the car had no A/C but a model like that would find a lot of buyers today. Of course when I owned the CRX, gas was a $1/gallon and so $8 fill-ups didn't mean all that much.
I'd love to see someone partner with Peugeot/Citroen to bring over some of their fuel sippers. A couple of years ago there were some rumors that Citroen might have a go at Canada and then work its way south, but I haven't heard anything since then.
Back to Detroit...Yes, there is a lot of doom and gloom. I'm particularly worried about one manufacturer which doesn't seem to have much on its plate or in the kitchen. However, regardless of the laundry list above, we will see some competitive vehicles headed our way in the next two years. Should those vehicles have already been here? Yeah, I suppose so. That's all water under the bridge now, however. Whatever the home team has up its collective sleeve, I hope that they resist temptation and don't release any half-baked models that could damage brands in the long run. I believe that manufacturers have grown wiser over the years, but when desperation sets in all bets are off.
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