2 July 2007

Ford's Future Powertrain Direction


While many auto manufacturers are scratching their heads trying to decide how to meet likely new EPA fuel economy standards in the next few years, Ford thinks it has an answer. They also hope that answer will address the power shortages that some of their engines have relative to the competition (particularly their V8s, in a world where the competition has 400 and 500 horsepower, with the same or better fuel economy of Ford's current engine lineup).

Ford's solution is called Twin-Force, and it means twin turbos coupled with gasoline direct injection. Starting with the 2008 Lincoln MKS sedan, Ford intends to apply twin turbos to I4, V6, and V8 engines over the next several years, and rumor is that engine sizes and power outputs will be:
  • 260 horsepower for the 2.5 liter I4 (likely to appear in the 2009 Fusion sedan)
  • 350-420 horsepower for the 3.5 liter V6 (likely to appear in the Mustang and F150 later in 2009)
  • 400 horsepower for the possible 5.0 liter V8
  • 650 lb-ft of torque for the 6.2 liter V8 (likely to land in the F150 and Super Duty as a diesel alternative).
If the power figures appear as rumored, I'll be very impressed. Even more impressive is that Ford expects fuel efficency to be on par with contemporary diesels of similar size, but expects diesel-like fuel economy, at a lower cost because the expensive emission equipment will not be needed.

Finally, the last part of Ford's powertrain future is called a Powershift gearbox, which is similar in concept to Volkswagen's much-loved twin clutch DSG gearbox. DSGs promise less driveline loss than a conventional torque converter-equipped automatic (so better fuel economy) and faster, more direct shifts.

Giving Ford the benefit of the doubt that they actually can meet these rumored horsepower and fuel economy numbers, plus rolling out a DSG, all they'll need to get in order is a more interesting, engaging styling direction. They have the ideas (the Ford Interceptor would be a nice start), but need to actually implement them.

I was someone who questioned Ford's strategy of going with a twin turbo V6 in the upcoming Lincoln MKS rather than the Volvo-sourced V8 in the original concept car, but if a Twin-Force V6 exceeds the V8's fuel economy, and with potentially 400+ horsepower (versus about 311 for the V8), it's hard to argue with the results. The photo at the top of this post is of the Twin-Force V6 in the Lincoln MKR concept car, which was first shown at the NAIAS in Detroit in January 2007.

I wish them luck. Now let's see these engines and transmissions actually installed in production vehicles.

29 June 2007

Happy Long Weekend


Long weekend coming up for those of the Canadian persuasion (ie. me), so no updates from me until Tuesday. Hopefully FB can do something up in the meantime.

Happy Canadia Day!

Infiniti Dealers Really Need To Just Shut Up And Sell Their Own Product


Was in an Infiniti dealership today, to get some information on the G35 sedan. It's a vehicle I've had my eye on for a bit now, and I wanted some comprehensive stuff on packages, features, and most importantly, pricing. It's all going fine at first. I appear to have a salesman who knows his vehicle very well, is very polite and courteous, and seems to have a grasp of the competition out there.

And then he started going kooky.

The first issue was that he wouldn't shut up about the most recent Motor Trend mag comparo that gave a victory to the G37 coupe over the BMW 330i coupe (mostly because the BMW was too expensive and needs an oil cooler badly). Umm excuse me, I'm not looking at a G37 coupe- I'm looking at the G35 sedan remember?

The second issue was that he kept bringing up residuals on the G35. The residual on a 2007 G35 Sport on a 48 month lease with no money down works out to be about 21k CDN. His argument was that most G35 sedans from 2003 (4 years ago) retail for around 28k CDN, making the G35 residual a great thing. But... he's wrong. A 4 year old G35 in good condition with about 100,000 kilometers runs, wait for it, about 21-22k. And he wouldn't shut up about this, heaping scorn upon BMW in particular for having such high residual values. I mean, who would want a vehicle that has a lot of value when you want to sell it.... right? Please note my sarcasm there.

Third, he tells me that the 2007 G35 uses the same VQ as the Altima et al. I even gave him a chance to backtrack on this, and he insisted (okay, so this is more me being a know it all bastard, but I digress).

And then this happens.

Him: So one of the other vehicles you're looking at is the Lexus IS?
Me: Yeah, it seems to be the Lexus most closely aligned with what the G35 is.
Him: Oh yes, but it's quite a bit more expensive.
Me: I understand that.
Him: It's also smaller.
Me: I understand that.
Him: Did you know that the IS250 is based on the Toyota Corolla, and the IS350 is based on the Toyota Camry? Why pay a premium for that?
Me: Huh?

He kept insisting this. In a way, I can understand the Camry thing- after all, the ES is on the Camry platform. But the IS? A rear wheel drive car? And bringing the Corolla into the picture? For the exact same vehicle but with a smaller engine?

At this point, I realized I was working with an idiot, and mentioned that I wouldn't want a luxury sedan so closely associated with the 350Z. And he flipped out, saying that the Z was on a completely different platform from the G35. And then I threw the Altima and Maxima out there just for shits and giggles to get him really riled up.

Needless to say, the domestic manufacturers are not alone in employing idiotic sales people.

Let's see...what else isn't bolted down?

Yesterday, GM announced that it had agreed to sell its Allison Transmission unit to private equity firms Carlyle Group and Onex Corp. for about $5.6 billion. Wall Street cheered the announcement, sending GM shares up to $38.19, nearly $20 per share higher than the shares were at their low point in 2005 during the worst of GM's bankruptcy fears. It seems that GM has managed to get a better price for Allison than Wall Street was expecting.

Allison Transmission, which makes transmissions for commercial trucks, buses, and military vehicles, as well as dual-mode hybrid transmissions for the upcoming light duty hybrid pickups and SUVs and for the popular Duramax/Allison combination in 2500 and 3500-series trucks, is headquartered in Indianapolis, Indiana. The sale announced yesterday excludes a plant in Baltimore that makes conventional and dual-mode hybrid transmissions used in GM's light duty trucks.

The Allison money will help offset the expected $7 billion cost that GM will incur to fund the UAW-Delphi bankruptcy settlement, which (if approved by union membership) will pay union workers upfront payments as well as ongoing supplemental wages for a period of time, in return for a reduced hourly rate in the future. There is also speculation that GM might use the Allison money to help fund a potential union-managed trust fund to pay for workers' health care coverage, similar to the agreement that Goodyear came to with its union membership last year.

Unfortunately for GM, the Allison unit was "highly profitable," and now it has killed another cash cow. The sale of 51% of its GMAC financing arm to Cerberus (the same company that bought Chrysler) marked the sale of another major contributor to GM's black ink in North America.

Other than these two, more "non-core" assets that GM has sold off in the past two years include stakes in Fuji Heavy Industries Ltd. (Subaru), Isuzu Motors Ltd. and Suzuki Motor Corp.

It's a shame that GM has to continue selling assets, but this is a necessary move for them to add to their cash balance and ensure that they can still meet their operating cash needs and keep the company running. But this is not the end of GM selling everything but the proverbial kitchen sink. They're also in talks to sell the (also profitable) medium-duty truck business. No announcement has been made, but the word is that Navistar is the front runner to acquire that business. Medium duty trucks are sold as the Chevrolet Kodiak/GMC Top Kick conventional cab trucks, and the T- and W-series cab over engine trucks, which are rebadged Isuzus, and are generally labeled as 4500-8500 series trucks (versus 1500-3500 series for the light duty ones).

Shedding assets of non-core businesses as GM and Ford have been doing is OK from the standpoint of allowing management to concentrate on core operations, and monetizing an asset, but it also eliminates a layer of safety net should core operations falter. There have been several quarters over the past few years that GMAC results helped to prop up GM's regular results. Now, they'll only be able to help 49% as much as they had before. After this year, there will be no return from Allison, and likely no return from the medium duty unit if it's sold off.

28 June 2007

Death Wish? Buy a Brilliance BS6

Last week, photos and video started circulating online of the horrific crash test results of the Chinese Brilliance BS6 sedan. The car was tested using the well-recognized Euro-NCAP (New Car Assessment Program) offset frontal crash test at 40 miles per hour by ADAC, a German auto club.

In cars that ace these tests, the passenger compartment stays almost completely intact with no intrusion of the floor into the driver's footwell or the instrument panel into the driver's face. The best cars often still have functioning driver's doors, yet sacrifice so much of their front end absorbing the crash energy that the occupants get out of the car relatively unscathed.

Instead, the poorly-named Brilliance BS6 saw the pedals intrude into the driver's space by 18 inches, and the dashboard by 7 inches. The driver's door wouldn't open without the technicians using a huge crowbar, and the rocker panel bent almost 90 degrees, stopped only when it hit the floor. The base of the windshield moved to the same vertical plane as the top of the windshield was before the crash, and the driver was left sharing space with steering wheels, windshields, and the front end of the car. He or she would have almost certainly been killed instantly.

ADAC also tested another BS6 for side impact protection (this is also in the video linked above). In this test, the side impact cart intruded past the width of the door into the passenger compartment (over 12 inches) and whipped the driver's head so severely that he would have almost certainly been killed.

Naturally, the car earned the minimum rating, one star, on a five-star scale.

If you're keeping score at home, Chinese vehicles undergoing western crash tests have both failed miserably (the earlier being the Landwind SUV, which fared so poorly it was withdrawn from the European market).

So far, the Luxembourg-based distributor for the BS6, HSO Motors, has sold 350 of the €19,000 cars, and has said that dealers should offer to repurchase the cars from owners who are concerned about its crashworthiness. However, one dealer quoted in Automotive News said, "For price-conscious customers who are careful drivers, this safety issue does not have priority." He also said that he would continue selling the car.

Great - so if you're sure you won't be in an accident, you're OK in a Brilliance. But I always thought that most accidents sort of happened, you know, accidentally. I've been in two of them in 16 years of driving, and I didn't plan them ahead of time. I really didn't expect them to happen, frankly. Sometimes, they're unavoidable.

For its part, the manufacturer doesn't believe that the poor crash test results will hurt sales. The company also accused the German media of "viciously playing up" the ADAC test results. Brilliance also said that they agreed to cooperate with ADAC on the BS6's safety, and expect the car to earn three stars within a year. Brilliance also would like to find a partner to help it crack the US market, and said in April that it would like to sell cars in the US, including the BS6, no later than early 2008.

Personally, I don't plan to set foot in a Chinese car that will be moving (I'd feel reasonably safe in one in a static display at an auto show) until I'm convinced that the safety of these vehicles has improved to modern standards. I'd take a good used car - or a new Renault/Dacia Logan/Nissan Aprio - any day over a Chinese car with questionable occupant protection capabilities. But, if you have a death wish, you can always buy one of these and drive into an offset barrier at 40 miles per hour. You won't be around to tell us about it.

25 June 2007

Further Idiocy From Ford


Courtesy of Bloomberg -

Ford Motor Co. thinks it finally has a chance to crack the small-car market, and not a moment too soon.

This fall Ford will begin selling the second generation of the Focus, a compact that hasn't fared well against some of the stiffest competition in the auto world. The new model, available with an optional interactive speech-recognition system developed with Microsoft Corp. and called Sync, will have to offer young shoppers a clear advantage over a Honda or Toyota, aside from a discounted price.

I swear, my head is about to explode Scanners style if I have to read any more shit like this from retarded automakers.

'A chance to crack the small-car market' ??? How idiotic is that statement? Ford CRACKED the small-car market back in 2000 with the original Ford Focus. It was class leading, it looked great for the time, it hit all the right buttons, it was a quantum leap over the Escort/Contour that it replaced in the lineup. It was an honest to goodness valid and in a lot of cases, BETTER alternative to the Civic, Corolla, Sentra, et al. And they shit the bed by not updating it significantly for almost EIGHT YEARS. Absolutely shit the bed. No ifs, ands, or buts. And now they're touting this new Focus as some sort of 'chance' vehicle for them.

The best part about all this? It's still not an all new Ford Focus! It's still riding the same platform, while the Mazda 3 gets all the latest goodies.

Incredible.

Is the smart Too Smart for the US?

The smart [the all-lowercase name is almost as irritating as Saturn's all-uppercase names, and will not be repeated throughout the rest of this post], a diminutive "city car" produced by Daimler, is going to make its official US sales debut in the first quarter of 2008, to be sold by United Auto Group, a large dealership chain owned by Roger Penske. There has been a lot of hype surrounding the US availability of this car; the official website at http://www.smartusa.com/ even is so kind as to provide a way for interested owners to "reserve" a 2008 Smart for just $99.

Although the reservation fee is refundable at any time, and the company claims that the fee and reservation system are there to "gauge interest" in the car, it sounds to me that it's arrogant at best, and a scam at worst. How does committing $99 - in what is not even really a commitment, because you can get your money back, and they don't have to sell you a car if they don't have enough - really gauging interest? Plus, the "deposit" is less than 1% of the $12,000 base price of a Smart. So basically, Smart expects buyers to pay $99 for the privilege of being contacted if a Smart car is available for purchase.

As of early June, UAG announced that they had over 20,000 Smart "Insiders" who paid $99 to be on the sort of wait list...so Smart is now holding almost $2 million for basically doing nothing. I'd like someone to give me $2 million for a little while. I won't even touch the principal, and if I invested it in a mutual fund that earned 10% per year, I'd be making six figures without lifting a finger. Sweet.

Smart expects to produce about 16,000 ForTwos for sale in the US for the 2008 model year, and I can see them meeting or even exceeding that goal, but is this really a car that's going to succeed beyond core urban centers like New York, San Francisco, Chicago, or Miami? Everything I've read about them has said that they're surprisingly roomy inside for two passengers, but lack luggage space, and give off a vibe of feeling a little too close to the road and surrounding traffic, without much sheet metal between you and them.

For a quick run to the grocery store, or for simple urban parking, they seem like a neat idea, if perhaps just a novelty. They'll get pretty good gas mileage (over 40 miles per gallon, even without the benefit of hybrids or diesels) and crash tests have been successful in them because of their innovative engineering. But how many Americans, who pretty consistently are in love with 1) large vehicles, and 2) fuel economy, as long as it requires no sacrifices in vehicle size, comfort, or engine power will be willing to pay $12,000 for an 8.8 foot long, 1600-pound "city car," when most Americans live in large suburbs and do not have to worry about urban parking or maneuverability? I think the Smart requires too many sacrifices - namely, interior space, engine power, and perceived occupant protection - to be a huge success in the US.

Mr. Lutz, Your Tin Foil Hat Is Ready


From The Detroit News

"This whole thing has nothing to do with energy policy, CO2 or the environment," General Motors Corp. Vice Chairman Bob Lutz told The Detroit News on Friday. "This is purely punitive; the 'big business haters' finally giving us our due for decades of 'colluding with oil companies' and 'forcing the U.S. public to buy big SUVs.'

"Make no mistake: these people hate us and want to inflict pain."

So it's come to this. the Vice Chairman of GM is complaining about black helicopters in the sky and a grand conspiracy against the domestic automakers, all because the government, who are looking after their own asses and ensuring that gas prices stay low and the trees all don't die, have decided to make CAFE have a bit more teeth.

Now, forget the arguments about CAFE, and whether it's a good thing or a bad thing for a minute.

CAFE has been around for a long time. And domestic manufacturers openly flouted the loopholes built into CAFE by spending most of their advertising and new product development dollars on trucks and SUVs, both classes of vehicles not affected by CAFE. They did this ON PURPOSE. There was no ignorance involved. They gave up markets with less margins where imports were making headway in order to take the easy road lined with SUV gold. And now that the farmer has figured out that he let the wolf take care of the chicken coop, they're pleading innocence and naivety. If it wasn't so funny, it would be disgusting.

The big problem in all of this is that the domestic manufacturers are now caught in their own endgame. No one takes them seriously anymore as purveyors of vehicles with good fuel economy, but they'll now be forced to market them. Just as the imports start taking aim at their lucrative truck market, and just as the money tree in their own backyard has started turning up rotten fruit. With less R&D money than the competition to develop new car platforms, and the competition going after the truck jugular, what next?

The obvious answer? Appeal to patriotism.

Chrysler Vice President Jason Vines, in an appearance on Mitch Albom's radio show Friday, lamented that America seems to be the only country where the government doesn't care about and protect its domestic auto industry. He said it was time to "give a damn" about an industry that creates jobs and wealth for hundreds of thousands of people.
Good sir- the government has given a 'damn' too many times in the past already. You dug your graves. Now pull yourselves out of them.

Ford : Home Of The Original Styling Cue


See that Lexus up there? In the US, it was sold as the Lexus IS300, the Lexus answer to the BMW 3 Series. In Japan it was sold as the Toyota Altezza. Sales started in 1998. It had some issues- namely, it didn't have that big of an engine, and the interior really wasn't all that Lexussy. It was a case of Lexus trying to be BMW a bit too hard. It even had an inline 6. What it DID have going for it was its looks- it's a handsome car from all angles, and even managed to look good in wagon form- a rarity. Notice those tail lamps? The IS300/Altezza started a trend in 98- 'Altezza' lights, which are basically clear casings with lots of chrome bits showing through. A more common sighting of Altezza lights would be Nissan, which cribbed the idea to an extreme in 2002 with the Altima (now in extra large versions with the current gen).

Well driving around this morning, it struck me just how hard the American makes are trying to make the rear ends of their vehicles look like Altezzas. It's quite funny actually. Especially in light of all the brouhaha they make about 'traditional American style' being the key area where they can trump the Japanese. The entire Saturn lineup is starting to look like Nissans from behind now... but the biggest offender is Ford. Who are methodically turning the front of their cars into Mach 3 razor blade replacement cartridges, and the rear of their cars into 1998 Toyota Altezzas. From the Fusion (which started it) to the yet to be released Focus, all the new Ford coming out are cribbing this styling element. Without grace or style I might add. Even moreso than the Altima, which was a shameless offender in previous gen guise in terms of a 'tacked on look' to the tails, the current Ford products look like 2 different designers had a go at the car- one at the front and one at the back.

Bear witness:






All of them with ultra glitzy rear ends for no other purpose than to copy the Japanese. Who would have thought the day would come where American style would be influenced by the Japanese? Well, it's here.

23 June 2007

Beware of the Fleet Queens

Yesterday, I came across some interesting data on fleet sales as a percentage of total sales for each car and truck sold in the US for the first half of the 2007 model year. There were some surprises and some non-surprises in reviewing the list.

Before pointing out some of the more notable items, let's talk about fleet sales. What is a "fleet sale" anyway? Well, auto sales are broken into two main categories: retail sales and fleet sales. Every manufacturer wants high retail sales, because they're not giving volume discounts on the vehicles, retail units are generally better equipped than the ones sold to fleets, and retail sales don't end up at auctions or used car lots for half of their original MSRP with 10,000 miles after only a year. Heavy fleet sales (and thus a large volume of fleet vehicles on the used car market) depress residual values of every one of that model, including ones sold to retail customers , making unhappy retail customers and likely further reducing retail sales.

Fleet sales can also be broken down into a few subcategories: commercial, government, and rental. The daily rental fleet sales are the worst kind, because the cars are driven by hundreds of different people during their time owned by Hertz or Avis, and not necessarily babied by their drivers. They are also quickly sold back to the manufacturer, as opposed to a car sold to a company for use by a sales representative, where he or she would keep the car for three years before turning it in. Also, having a substandard car in your lineup that is a "rental car favorite" is not a good way to turn renters into future buyers, because you're not putting your best foot forward as a manufacturer. For example, imagine if the general public thought that all GM sedans were on par with the Grand Prix, when the reality is that many are better.

The source of my data is http://www.fleet-central.com. Fleet Central is a website for automotive fleet managers and appears to be pretty comprehensive. Fleet percentages given are as a percent of the model's total sales midway through 2007 unless otherwise noted, and include commercial, government, and daily rental sales.

The Non-Surprises
Ford Taurus

Think about the cars you have rented over the past few years. Most likely, they were models such as Chevy Malibu (58.8%) or Impala (53.9%), Ford Taurus (96.5%), Pontiac Grand Prix (77.6%), etc. For this reason, these models are all leaders on this list. Some others on the list are not surprises; the Ford Crown Victoria, a government favorite (thanks to police departments) sold 91.3% of its overall sales to fleets, mostly governmental agencies. The Ford Econoline, a favorite of plumbers and contractors, was 69.2% fleet sales because not many retail buyers need or want the capability and size of a full-size van.

The Surprises
Dodge Avenger

This part is more fun, but it's not necessarily good news. There are some 2008 model vehicles, just introduced in the past few months that are already selling more than half of their production to fleets (and mostly daily rental fleets). Offenders include the Chrysler Sebring (63.5%) and Dodge Avenger (79.4%!!). No wonder Chrysler management is so concerned about those two vehicles and has implemented an immediate improvement program to make them more attractive to people who want to buy the cars, not just catering to people who rent them and don't get to choose.

Other relatively new models with somewhat high fleet percentages include the Kia Optima (52.8%), Dodge Caliber (45.1%), Ford Edge (32.0%), and Chrysler Aspen (31.2%).

The Fleet "Hall of Shame"
Pontiac Grand Prix

The following vehicles sold more than half of their overall sales to fleets; if you would like to buy one of these cars for yourself, you can probably get a great deal on a slightly used one, but you're likely to take a huge depreciation hit if you decide to be in the minority and buy one of these new from the dealer.
  • Chevrolet Express (58.4%)
  • Chevrolet Impala (53.9%)
  • Chevrolet Malibu (58.8%)
  • Chevrolet Uplander (70.9%)
  • Chrysler Sebring (63.5%)
  • Dodge Avenger (79.4%)
  • Dodge Caravan (54.8%)
  • Dodge Charger (56.2%)
  • Chrysler Crossfire (70.6%)
  • Chrysler PT Cruiser (61.8%)
  • Dodge Magnum (60.9%)
  • Ford Econoline (69.2%)
  • Ford Taurus (old version) (96.5%)
  • GMC Savana (50.9%)
  • Kia Optima (52.8%)
  • Mercury Grand Marquis (50.0%)
Study the list above carefully; odds are, next time you visit the rental car counter, they'll hand you the keys to one of the models above.

The full lists are available here:

Cars: http://www.fleet-central.com/af/stats2007/cars_web.pdf
Trucks: http://www.fleet-central.com/af/stats2007/trucks_web.pdf

22 June 2007

The Hype Around The 2008 Cadillac CTS Is Premature



The automotive equivalent of Jesus Christ is coming to Cadillac next year. Or that's what assorted fanboys of the GM persuasion would have you believe. A better interior, a sleeker exterior package, and upgraded engines are all cited as being reasons for this optimism. But dig deeper and what do we find?

1. Excessive Mass
The CTS will weigh 3861 pounds in manual transmission form, 3872 pounds in automatic transmission form, and a whopping 4101 pounds in all wheel drive configurations, according to THIS GM press release. That's hefty. For the sake of comparison, a BMW 335xi tops out at 3825 pounds, an Infiniti G35x tops out at 3703 pounds, an Audi A4 3.2 Quattro tops out at 3780 pounds, and a Lexus IS350 tops out at 3527 pounds. All of the competition noted, except for the Lexus have AWD in those weights listed. Note that ALL of the AWD competition actually weighs LESS than a regular old 2WD 2008 CTS. Ladies and gentlemen, the next gen CTS is a porker. How this will translate into a 'sports sedan' is yet to be seen, but for the sake of argument, the A4 is often derided as being too heavy. So what are we to expect of a 4100 pound CTS?

2.Barely Enough Power
If the 2008 CTS was released as a 2006 model, I would have no complaints. It features two engines- the much loved regular 3.6 HF V6 from the GM family, and a brand new 3.6 HF DI V6 making a confirmed 304 horsepower. Yes, the torque curve is very flat. Yes, it's competitive. But note my point- if it came out in 2006, it would be more than enough. As it stands, a yet to be released 2008 CTS already trails the Lexus IS350, the Infiniti G35, and the BMW 335i (300/300) in power stats. Incredible. If you want a perfect example of GM failing to take into account the competition and benchmarking moving targets, this is it. Yes, the base engine is more powerful than most others in the class. No, that doesn't mean shit, since most advertising centers around the top end engine outputs. Not to mention that in a few months, Infiniti will be dropping a 3.7 VQ into their G coupe (which will no doubt make its way to the sedan). Combine barely competitive power with excessive weight, and the prognosis doesn't look good.

3. Dull Styling
Yeah yeah, styling is subjective. But honestly, apart from the front fascia, how much major change has been made to this vehicle? A similar argument can be made for the redesign of the G35- it looks a lot like its predecessor, but then again, the G35 isn't the next stage of a 'design revolution' for Infiniti, like the CTS is for Cadillac. Yes, it's a bold grille. Yes, the side vents are cute, if a bit played out. But beyond that, I could be looking at a current generation STS. Just a big let down in a field where Cadillac could have really made a splash.

4. Missing Features
I'm not like some others that will bemoan the lack of push button start and the lack of Bluetooth as reasons why someone wouldn't buy a CTS- but the question remains- why the hell is GM so against upgrading their products to at least the minimum of the market standards? If even one sale is lost because someone wants Bluetooth and/or push button start in their vehicle, that's one sale too many, and a sale that GM could have easily kept. Instead, their reliance on OnStar has become a boon and a burden to the company- they're afraid to poach OnStar customers with Bluetooth capability, but will never move forward technologically unless they do so.

At the end of the day, the biggest issue that the new CTS will encounter is how to overcome its weight and power issues. The new interior will no doubt boost lagging sales, but if the goal of Cadillac is to once again become the standard of the world, they'll have to do much better than this- because 'this' is competitive with vehicles of today, never mind vehicles that will be released and available in 2008.

21 June 2007

Tom Cruise: Future Attorney General


Via the Globe & Mail-

The government has the power to seize and destroy cars that have been adapted for street racing, and can do so before a race takes place or any charges are laid, Ontario Attorney General Michael Bryant said Wednesday.

Car junkies who pour thousands of dollars into their vehicles to make them as fast as possible are wasting their money, Mr. Bryant said.

He warned potential racers that all it takes is a tip from police to seize and destroy their cars.

“If we can establish someone has parts and they're juicing up their car — obviously for the purpose of street racing — then we can seize those vehicles,” Mr. Bryant said.

In the last couple of weeks there have been two high speed accidents in the Toronto region that have caused deaths. The most recent was a few days ago, when a Grand Am and a Mustang on their way up to cottage country, were swerving in and out of traffic at high speed, causing a tractor trailer to fishtail and subesequently crash, killing the driver almost immediately.

Yes, it's tragic.

Yes, the idiot drivers should be prosecuted to the full extent of the law (which is laughably lenient).

No, it's the not the fault of street racers.

There's a very real difference between street racing and idiotic driving. Street racers are, well, racing. And idiotic drivers, well, are driving idiotically.

My real beef here is that the government of Ontario is apparently taking a page from Supreme Court Justice Antonin Scalia, and interpreting fictitious events as being plausible in the real world. No Mr. Bryant, this is not 'Minority Report'- you can't predict who will be street racing their vehicles, who will be making their vehicles more powerful just for kicks, and who will be actually taking their vehicles to the track. Using this line of reasoning, anyone who bodybuilds for the purposes of being stronger should theoretically be pre-arrested for assault. And anyone who buys a legal gun for the range should theoretically be pre-arrested for murder. And anyone who buys a DVD burner should be pre-arrested for piracy. And anyone who takes a penny from the 'take a penny leave a penny jar' should be pre-arrested for armed robbery.

Another issue with what Mr. Bryant has said is exactly what constitutes a street racing vehicle? Is the idiot down the street with the fart can muffler and racing decals looking to street race his Honda Civic? Or is it the guy who just bought an AMG CLS with about 600 HP? Or the kids who just had their parents buy them a WRX STi for their birthday? As seen from the accident a few days ago, you don't need a performance car OR mods to street race- the Grand Am being a prime example.

Not that I'm surprised at their actions. With a provincial election coming soon, and the Toronto media in an uproar over these 'idiot' kids speeding everywhere around the city (funny, because I drive everyday and I don't see them), the easy decision for a government is to overreact. And they satisfied the criteria with this move.

Unfortunately, the real issue here, and the overlooked issue here, is that police forces, not just in Toronto, but around North America, are not interested in having safe roads for the most part- they're interested in ticket revenue and catching speeders. And until that changes, we're going to continue to see such accidents.

20 June 2007

RIP Monte Carlo: Don't Let the Door Hit Your Ass on the Way Out

GM announced today that the last front wheel drive, W-body Monte Carlo "sports coupe" has been built. The Monte Carlo of the past several years took all that was wrong with the Impala (review here) and added to it a cheaper looking interior, large and impractical coupe doors, the biggest quarter panels since a 1976 Coupe de Ville (slight exaggeration), and a redneck/NASCAR owner stereotype.

Similar to the Impala, the Monte Carlo is a perfect example of the OLD GM and exactly the kind of car that it should not be building. I'm glad that they finally gave up on it. Sales were a lukewarm 34,113 in the 2006 calendar year, and were down over 30% so far in 2007. Few buyers want coupes after their first two years on the market, and even fewer want ones with gangly styling, a NASCAR alter ego, and chassis architecture that dates to the late 1980s (albeit with periodic improvements).

I'm not going to miss the Monte Carlo, at least as it was in this form. My favorite style is the first generation. The second generation was way too overstyled, and the next generation began a trend of mediocrity for the car. The low point, though, was probably the Lumina-looking Monte Carlo of the 1990s that had ZERO style, grace, or character. At least the last generation had a little style, even if it wasn't exactly a current style.

Rest in peace. Now, will the NASCAR fans in the South start driving Impala SSs? It's hard for me to imagine, unless they release a special "Intimidator" edition with black paint and silver ground effects.

Chrysler Finally Figures Out How To Rid Itself of 2006 Models

I don't live anywhere near Detroit (about 550 miles away), but even I've heard the stories over the past year or two of Chrysler overproducing vehicles to keep the factories running, even in the face of falling demand for their products (particularly the larger, more fuel-thirsty ones). Since they were unable to convince dealers to take many of them, and still had a huge inventory problem, many of them were being parked in overflow parking lots at the airport in Detroit. There were acres upon acres of new 2007 Jeep Commanders, Dodge Durangos, and more.

Chrysler finally wised up a few months ago and discontinued this practice, after having at one time or another over 100,000 unsold, unordered new vehicles in the "sales bank." Chrysler watchers (or Iacocca autobiography readers) may recall that this very thing - the sales bank - nearly bankrupted the company in the late 70s/early 80s. This time, all it did was cause a multi-billion dollar loss, the head sales & marketing guy (Joe Eberhardt) to lose his job, and lead to much of the pressure that lead Daimler to unload the Chrysler part of its name.

Meanwhile, most of the damage was done. The sales bank vehicles were already built, and there were billions of dollars in finished goods inventory that nobody wanted, sitting in the Detroit weather, with birds crapping on them and the sun, rain, wind, and snow depreciating them. Last I heard, most of them had been accepted by dealers. But at this point, with many 2008 models hitting dealers, who wants to buy a "new" 2006 that was built almost two years ago, when 2007s are becoming heavily discounted?

Chrysler's solution to this was to basically allow dealers to buy the leftovers themselves. You see, dealers who held 2006s and used them as loaners or test drivers for as little as one day could be considered used cars, transferred to the used car lot, and counted as a new car sale. So, aside from helping to clear out excess [old] new car inventory, this policy change also bumped up Chrysler's May 2007 sales results. Previously, the rule was that a vehicle had to be a loaner for 90 days before it could be considered a used car. What's not clear is who is eating the loss in value - Chrysler or the dealers - when a vehicle priced at $30,000 suddenly becomes a $22,000 vehicle overnight. But if you're in the market for a new Chrysler vehicle, particularly one where there might be new 2006 models still out there, it might be a good time to go shopping. According to the company, there were 9,800 2006 Chrysler Group vehicles in dealer inventory as of May 31, 2007.

Toyota Changes Course

The Wall Street Journal reported this morning that Toyota is putting the brakes on its factory building activities in the US, once the new plant for Highlander crossovers in Tupelo, Mississippi is finished in 2010. Toyota has already scaled back its plans for the Tupelo plant, reducing initial production capacity from 200,000 to 150,000 vehicles and delaying its opening date from 2009 to 2010.

It seems that the company is concerned about several factors - increased US labor and material costs, a geographically diverse North American manufacturing base, and the quality problems that have uncharacteristically confronted Toyota for the past few years. Also, the company is in the unfamiliar position of having excess production capacity at its North American plants (it can build about 100,000 more Tundras per year than it's on pace to this year).

Over the years, Toyota has built factories in the US for two main reasons: to build political support in as many communities/states as possible, and to provide a sort of "insurance policy" against protectionist policies and currency fluctuations that would make putting all of its factory "eggs" into one basket potentially disastrous. However, with the Japanese yen being inexpensive relative to the dollar, it's more profitable for Toyota to import cars from Japan.

According to the article, the policy shift was driven by two of the company's former presidents: Shoichiro Toyoda (1981-1992) and Hiroshi Okuda (1995-1999) who are still members of the company's board. These men were concerned that Toyota has built too many plants in the US too quickly, and hadn't fully considered the economics of the decisions.

The supply chain complexities that come from a geographically diverse manufacturing base (Toyota has plants for engines, parts, or vehicles in eight states). Toyota's four most recent assembly plant projects have only one production line each (the most efficient plants Toyota operates have two or more lines).

In contrast, most of Toyota's factories in Japan are concentrated in Toyota City, which makes the supply chain much easier and less expensive to manage, and most of the company's plants in Japan can build up to six different models each, instead of one or two built in the company's North American plants.

My take: It appears that Toyota has allowed themselves to become a little complacent over the years...almost making very expensive factory construction decisions on auto pilot, when there may have been a better alternative. I congratulate them on identifying the problem before it's too late, like most of their domestic competition did for the past two decades. If Toyota's record profits of the past year or two are coming on the back of some fundamentally unsound decisions like these, imagine what they can accomplish if they sharpen their focus and concentrate more on profitability and cost reductions than on political goodwill and making the "automatic" choice.

19 June 2007

The Ugliest Vehicles On The Road Today

It's amazing to note that even with all the increased marketing dollars out there today, and with all the focus on what the customer wants, we still see the styling monstrosities out there on the road that we still do. One part of me says that's a good thing- it means that companies don't just want to create 'me too' products. Another part of me says that sometimes it's better being anonymous and unseen.

Lost in all the hoopla over the upcoming G8 is that this likely means the end of the road for the W-body Pontiac- the Pontiac Grand Prix. Up until the current generation, it was easily the best looking of the group, and was actually one of the best looking sedans on the market. You know the one- the touted 'wide track' version that actually wasn't a wide track at all. But I digress. Whoever was responsible for the current gen took all the good out of the old design and tacked on an unneeded 'sedan coupe' element in the C-pillar which completely destroyed whatever lines the car originally had. Paired up with a far too blocky front end, and a rear end that reminds me of fish gills for some odd reason, and you've got a recipe for hideousness.



There are very few things that current day Detroit innovates in, but big trucks and SUVs is definitely one of them. And it was because of this innovation and the success it engendered that Nissan threw their hat into the ring with the Nissan Armada (nee Pathfinder Armada) and Infiniti QX56. In my opinion, the Nissan almost gets a pass on the styling simply because of what I stated earlier- at least it was trying something different. But to go and simply slap a big chrome grille and huge wheels on the Infiniti model only made what was once good looking butch into simply butch. To this day, I have no idea what they're thinking with the rear door handles and the way the back pillar sort of swoops forward.



Always trying to be different, Honda struck out big time when they dropped the bomb that is the Honda Ridgeline on the public. Looking like a retarded future version of the Chevy Avalanche, but without any sort of masculinity or machismo, it was destined to fail as a 'real' truck for 'real' truckers from the moment it was released. The worst part about the ugly styling? It's not even ergonomic- the high bed makes lifting things over the side impossible, and the C-pillar design leaves a huge blind spot.



Back in the day, Toyota released the T100, and expected it to take the full size market by storm. It was too wimpy, too tired, and too bland. So they went back to the drawing board and came out with a new truck with a new name that didn't evoke Arnold- the Tundra. And it too was too wimpy, too tired, and too bland. So for the third time, they said screw it and decided to make a truck that was full of testosterone, and apparently, every visual cue they could pilfer from other manufacturers in the market. The result is the new Toyota Tundra. A bit of Dodge Ram in the front, a bit of Ford F150 in the side profile, and a bit of GM twins in the stance. It's all there. Of course, Toyota also forgot to make it coherent. To these eyes, the Tundra looks like a constipated baleen whale.



Toyota #2 on the list. The story of the current gen Toyota Camry is almost the same as the Tundra, but with a LOT more sales. So the question is- why would Toyota tinker with success? On second thought, scanning the sales figures, they haven't really messed the success up. But nonetheless, much like Coke did in the 80's when they copied Pepsi and failed miserably, the Camry is an example of a market leader that for some reason has decided to morph itself into the competition. Namely, a front end gracelessly pilfered from the Mazda 6, and the same bloat evident in the Tundra at all angles. Even the SE badge with requisite body kit does nothing but enhance the overall visual bulk of this land barge.



The 2007 Chrysler Sebring. Nuff' said.



You're Lincoln. You've basically created the upscale large SUV market with your Navigator- the only certified hit for the brand of the last 15 years. It drives old customers to the dealership, it drives young customers to the dealership. It's featured in music videos everywhere, and is a status symbol to most everyone who sees it and who isn't a member of Greenpeace. What to do with your updated model? Apparently the answer is to leave everything well enough alone except for affixing the automotive equivalent of 1930's braces to the front of your vehicle. I won't even mention reincarnating your dashboard of the 50's. Kudos Lincoln!

The Nissan Sentra has always been the ugly duckling of the Nissan lineup. Always too square. Always not proportioned right. Always looking a bit dorky. The peak of such dorkiness was in the late 90's versions, which looked like what a Japanese designer envisioned an accountant would want to drive. Fear not however, for the current gen Sentra is here to take that honour away! You'd think that Nissan would follow a simple formula- nicely styled Altima - a few inches here and there = good looking Sentra. But no, they went and fuxxored it all up by taking a few inches off at each end, but forgetting to take it off from the top too. The result is a weirdly shaped too tall vehicle that looks more tippy than a Suzuki Samurai, and slower than a fully laden Hummer H1. Not good.



The last monstrosity on the list is the Mercedes R-Class, or as it should be called, the 'Mercedes That No One Asked For'. Apparently there was a clamouring for a Mercedes minivan in the market. Maybe there was. What I do know for sure is that there couldn't have been much of a demand for what appears to be the redheaded bastard child of an unholy union between a Honda CR-V and a Chrysler Pacifica.

More to come I'm sure.

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2008 Corvette Pricing Announced

Well, another Corvette article this week...

Rick "Corvette" Conti, a Corvette specialist at EVS Chevrolet in Random Lake, WI, posted the 2008 Corvette pricing on his website today. To me, as a Corvette enthusiast (and wannabe owner), the most pressing questions about 2008 Corvette pricing were:
  1. How much will the base price increase, with the new LS3 6.2 liter engine?
  2. How much will the 4LT/3LZ trim package cost (leather wrapped dash/trim)?
  3. How much will the performance Z06-style exhaust cost?
Well, the news was actually pretty good. GM was prudent to keep the price increase relatively modest, in light of falling Corvette sales for 2007 versus 2006.

The base price (including destination) increased from $45,075 to $45,995, which is an increase of $920, or 2.0%. Included in the base price is a 7.5% horsepower increase (400 to 430) and standard XM and OnStar.

The 4LT/3LZ trim package, which includes everything the 3LT/2LZ packages (last year's top trim levels) get, plus the leather wrapped dash and door panel trim, adds $3,500 to the price of a 3LT/2LZ. Motor Trend predicted that it would cost $4,000 to $5,000, and said that those prices were worth it, so I guess $3,500 is reasonable. I don't plan on considering it if I get a new one, though...the budget would already be stretched pretty thin.

The NPP performance Z06-style exhaust, which adds 6 horspower for a total of 436, costs $1,195, which is about what I was expecting it to cost. No matter how good it sounds at wide open throttle, I don't think $1,195 for 6 horsepower is worth it to me.

The nice thing about XM and OnStar being standard in the base 1LT Corvette for 2008 is that, since they were previously standard in the 3LT, the price of a 3LT with no other options goes up only $480, from $50,020 to $50,500. That's only an 0.9% increase.

Kudos to GM for continuing to build a [relatively] affordable sports car! Now, fix the attitude of your Chevy dealers who don't let people test drive them.

17 June 2007

2009 Nissan 370Z/400Z/WhateverZ?


The good people at GT Channel Auto News have this picture and are calling it the next gen Nissan Z car. I'll refrain from calling it a number at this point, because who knows what they're going to do with it- will it have a neutered (see: non turbo) version of whatever they're sticking under the hood of the GT-R, or will it have the exact same 3.7 VQ found in the forthcoming G37 Coupe? At this point, I have no idea.

Regardless, it's a nice looking evolution, and I know it sounds stupid to say this from just a picture, but it LOOKS smaller- which would fit the mule pictures from last week of what appeared to be a shortened 350Z on a track doing some testing.

We will see.

14 June 2007

Welcome Aboard!


Loyal readers to the site will notice a marked uptick in content the last 3 days- all courtesy of one man, 69Firebird400, hereby shortened to FB so I don't drive myself crazy typing out numbers and letters. Apart from making me seem even more lazy than I actually am in regards to site updates, he's got quite a background writing for AutoSavant and his own blog, Cars & Tech - so be sure to check out his work - only the best for TMR (pretentious shorthand for The Mags Report).

Welcome aboard FB!

We are still looking for talented writers like FB- so feel free to contact me at magforce@gmail.com if you're interested.

Test Driving The 2007 Chevrolet Corvette


Here's the review-













Yup. That's it.

Why is there no review you ask? Very simple. The local Chevrolet/Cadillac dealer in the area doesn't allow for new Corvettes to be test driven. At all. Now in my specific case, this isn't an issue, since I'm not buying such a vehicle. But I bring up a salient point at this time- I wasn't alone, and the person I was with WAS very much in the market for such a car. Also on his shopping list? The Cayman. Possibly the 911. The BMW Z4. The Mercedes SLK350. All sports cars, some of them more expensive than the Corvette, some cheaper.

Thus far, he had driven the Z4 and the SLK, and had an appointment set up with the local Porsche dealer to drive a Cayman (which was going to be moved out of the showroom just so he could drive it). Upon arrival at the Chevy dealer, we were approached by the salesperson, who promptly looked up if he had stock of what was required- a convertible Corvette with a stick. Lo and behold, he had one. And then the fun began:

Sales- So I've got one on the lot- what can I do for you?
Client- Well, I'd like to take it out for a test drive to get a feel for how it compares to the other vehicles I'm cross shopping.
Sales- We don't allow new Corvettes on test drives. But if you'd like, I have a used 2002 Corvette we can take out.
Client- (incredulous laugh)
Sales- No one ever asks for a test drive because they know they want it already.
Client- You're serious? You're actually assuming I will disregard the competition and lay down $70k on the spot today without a test drive because it's a Corvette?
Sales- Well, would YOU like it if your new Corvette had 500km on it when you bought it brand new? Plus, these are very expensive cars!
Client- So wait, you won't even let me test drive it with you in the car with me?
Sales- No.
Client- See you later.

...

So ended another unsuccessful sales call with a GM minion. The last time I saw a dealer act this way was at the downtown Lambo dealership- but then again, it's a Lambo. But a Chevy dealer???

Note to Bob Lutz- make your cars as great as you want- you still need to fix the sales departments outside of Saturn.