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By on March 17, 2008

aston-martin.jpgDer Spiegel reports that Aston Martin Boss Ulrich Bez met with Daimler's Dr Z last week, and both came away talking relationship. The two met to discuss the possibility of Aston purchasing engines and platforms from the German giant. Bez is just looking for a new technology partner, after the legendary British brand was bought by private investors. But Dr Z thinks love might be in the air, telling Der Spiegel that Aston "fits perfectly with Mercedes-Benz." But a German takeover of yet another British marque looks unlikely, as Aston investors are not ready to take the relationship to that level. After a few intoxicating product cycles with hot-shit AMG engines draped in sensual Aston metal, the attraction may just be too strong for either side to deny. Needless to say, we'll be watching creepily from our little corner of the internet.

By on March 17, 2008

tara_tiny_interior.jpg

In my recent review of the ZAP Xebra  I stuck my neck out and said: "The Xebra probably costs $3k to make. It's certainly not worth much more than that." Turns out I was being (uncharacteristically) conservative. According to newlaunches.com, a four-wheel version of the Xebra is to be sold in India as the Tara Tiny for $2450. A joint venture between India's Tara and China's Aucma, a manufacturer of electric vehicles, will result in the "the world's cheapest car;" undercutting the Tata Nano by a whopping $50. The Xebra sedan is being sold here for up to $16k. BTW, battery life for the Xebra is 4k miles, according to a poll of owners. And how do I know it's the Xebra? That fourth wheel is a good disguise, but I'd recognize that god-awful hard-shell one-piece dashboard anywhere, even half-way around the world.

By on March 17, 2008

maybach-exelero-1024×768.jpgDaimler's Man in the Iron Mustache, Dr. Dieter Zetsche, told The Car Connection that Maybach may go the way of the Oldsmobile within the next two years. Zetsche said Maybach would either release an all-new model or go defunct. Dr Z openly admitted that "It's likely we'll not have a [positive] return on investment" for the brand. Luckily, "this does not matter." Last year, Daimler sold a whopping 146 Maybachs; roughly ten percent of the sales estimates bandied-about back when DaimlerChrylser revived the brand in 2002. As Zetsche doesn't expect the recently announced Landaulet to increase sales and Merc's launching AMG as a sub (uber?) brand, the odds are hight that Daimler will decide there's only room for one overpriced S-Class in their lineup and kiss Wilhelm Maybach's goodbye.

By on March 17, 2008

pontiacsolstice.jpgAnother day, another leak. Pontiac's PR "accidentally" posted a preview of the NY Auto Show's debut on Pontiac's website, and it "accidentally" contains a picture of the Solstice coupe that's headed for production. The coupe will do away with the convertible's biggest flaw: being a convertible. Then again, it also means giving up the Solstice's biggest redeeming quality: when the top is down, it's a pleasant roadster. That said, it should be a hoot when set up with the 2.0-liter, 260-horse turbo. Camaro cannibalization? Of course not. We'll have pictures from the NY show in a few days. In the meantime, when are we going to stop these blatant attempts at media manipulation "leaks?"

By on March 17, 2008

feats-dont-fail-me-now.jpgMr. Lieberman is right to call the musical metaphor informing TTAC's Question of the Day "seriously forced." In fact, it reminds me of 70's-era touchy-feely market research methodology. "If the Toyota Cressida was a dog [sic 'em], would it be more like an Australian Kelpie or a Petit Basset Griffon Vendeen?" And yet, the QOTD also reminds me of a long-ago survey– in the UK of course– where a researcher claimed that listening to loud music was more likely to cause speeding (gasp!) than alcohol consumption. True dat. I've always had a thing for [theoretically] driving fast whilst under the influence of music. But it's nothing like alcoholic inebriation. When music, road, man and machine meld, it's a far better high than anything supplementary chemistry can provide. And I get the parallel between engineering and music. In fact, I reckon if The Big 2.8's execs could "get" Little Feat, they'd have a chance of saving their own bacon. But then, most people that age consider Neil Diamond rock and roll. Go figure. 

By on March 17, 2008

b00005ry7x_01_lzzzzzzz.jpgHuh? No, really. Before you call me weird, please read this from The National Post. To summarize (for our time-challenged cubicle dwellers), Nissan employs a designer named Shiro Nakamura. As a cellist, Nakamura uses music to design cars. No, really. "The Nissan brand is more is more like jazz, pop or rock, whereas the Infiniti luxury division is akin to classical music." I'm not sure where that leaves the new FX50, though Wagner springs to mind. And I'm positive that the QX56… I was going to make a Mozart bowel movement joke here. Anyway, you get the idea. As corny as this seriously forced metaphor sounds, let's ride it like a Valkyrie. I drive a blue Subaru WRX wagon. For some perverse reason, the Subie reminds me of Andrew W.K. Often bloody, but unbowed. And manic. You?

By on March 17, 2008

hondalife.jpgHonda's stepping-up their investment in their smallest Japanese models. Although Kei cars are virtually unknown to Americans, they account for a huge segment of the Japanese car market. High gasoline costs, motoring taxes and strange parking permit requirements have lead to the creation a car category whose engine displacement is capped at 0.66 liters (just slightly more than a 20oz bottle of soda). Honda has announced that they're spending ¥50 billion ($500m) to streamline production of these little buggers (production will be "almost the same as the current capacity"). A few years ago, Honda acquired a company to build Kei cars for them. So this huge investment is aimed at integrating that company into Honda's structure. Efficiency is the way to go when you're talking about cars with 50 horsepower.

By on March 17, 2008

black_ve_maloo_sd1.jpgThe forthcoming introduction of GM's Pontiac G8 GXP and ST (Sport Truck to those of us who would prefer they just call it the El Camino) at the New York Auto Show has the Australian GM division Holden crowing its success. "The truth is that under the shadow of the Mitsubishi closure announcements, across the other side of the city, the GM Holden plant has been quietly exporting its head off and making great inroads with the development of new model cars to new markets around the world," says Holden Honcho Kevin Foley. The Sydney Morning Herald reports that Australian Industry Minister Kim Carr joined the Aussie cheerleading, saying "GM Asia-Pacific actually out-performed the parent company in 2007, thanks in part to a strong showing from Holden." GM's plan to ship more Pontiac-branded Holdens stateside may actually exacerbate this imbalance. GM's purchasing chief told a recent suppliers conference that higher fuel costs have already increased GM's transport costs by $84 million this year alone. As excited as some enthusiasts are to witness the return of the El Camino, shipping more cars from the opposite end of the planet are not going to do wonders for GM's bottom line.

By on March 17, 2008

1976chryslercordobasportcoupe.jpgAfter realizing that his announcement that Chrysler would be shutting down for two weeks this July "knocked Eliot Spitzer off CNN," CEO Bob Nardelli thought the news needed some clarification… and a joke. The Free Press reports that some 25 percent of the labor force will be staying at their posts for the first two weeks of July, specifically those with time-sensitive jobs developing new vehicles or working with the company's dealers and customers. Which means that the throngs of customers who will be lining-up around the block for a new Dodge Journey at about the same time gas is expected to hit $4/gal need not be disappointed. Er, at least until they start drowning in the standard-feature inland sea. The branding boffins headed by Peter Arnett should stay busy too, although it's unlikely that even Nardelli knows exactly what he's actually doing. Oh, and Nardelli's moment of levity? "Really, it's taking a bold leap into the 1980s," chortled the Chrysler CEO. So Chrysler really is going bankrupt?

By on March 17, 2008

3241076.jpgGM's "ground breaking" deal with the United Auto Workers (UAW) was a national negotiation; implementation occurs on a plant-by-plant basis. The main issue facing local leaders: determining which jobs are "core" to auto assembly and must be paid the old $28/hr rate, and which are "second tier" and can be filled with cheaper labor. According to The Detroit News, at least three local UAW leaders have accused GM of trying to bring in hundreds more "second tier" workers than the agreement allows. Well they would, wouldn't they? The wage reductions constitute the contract's main financial benefit to GM (for which the automaker agreed to establish a $32b health care superfund). And the clock is ticking. "The lack of agreement on wages likely wouldn't cause major problems until later this summer, when GM will need to bring in new employees to fill spots vacated by workers who took retirement incentives or buyout offers."

By on March 17, 2008

23105052.jpgPity the poor U.K. motorist. On top of new "gas guzzler" showroom taxes, higher sky-high taxes on gas and diesel, 17.5 percent VAT on everything car-related (soon to include car insurance), increased CO2-based London congestion charging, the introduction of CO2-based parking space taxes and the ongoing prospect of road pricing (and all the other taxes), Heathrow Airport is considering imposing a £20 "drop off" fee for passengers arriving by car. Oh, and a £3 congestion charge for trucks using roads around the airport– including the M4. According to The Evening Standard, The British Airports Authority's (BAA) new taxes charges would raise £137m a year, which they'd use to pay for the costs of administering the scheme. Just kidding (kind of). BAA would use the money to pay for the airport's expansion and meet the Government's stipulation that Heathrow's growth should not result in an increase in nitrogen dioxide (NO2) levels. Meanwhile, environmentalists are giving British Airways shit [at the bottom of the same article] for flying three jets into LHR without a single passenger on board. Oy.

By on March 17, 2008

x08pn_g6007.jpgSpring: the season of love, flowers and convertibles. As warmer weather approaches, car dealers put away the 4×4 SUV’s and pull the drop-tops from the back of the lots in the hopes of snagging passersby wanting a vehicle to celebrate the (global?) warming weather. Pontiac tempts buyers with the G6 GT Hardtop Convertible while Chrysler lures in the public with the newly-introduced Sebring Limited Hardtop Convertible. As the only American-branded hardtop convertibles, which one truly deserves your hard-earned income? Or should both be tossed into the bonfire of the vanities?

By on March 17, 2008

welcome_253.jpgThinking long-term (as always), Toyota wants its dealers to spend millions expanding showrooms, adding service bays and upgrading their architecture. Thinking short term (as always), Toyota dealers are contemplating the "Image USA II" plan and saying "not on my dime, Bub-san" [paraphrasing]. Automotive News [sub] reports that slumping sales are leading to some serious foot-dragging. "There's never a good time to do a facility modification," TMNA prez Jim Lenz insists. "It doesn't matter if it's two, five or 10 years from now; it will be more expensive than it is today." Toyota's stick: they're threatening not to renew franchises on older stores and offering just two-month franchise extensions to dealers slow to spend the cash. Toyota's carrot: better allocation of popular models. Some dealers say "more cars are the last thing I need." What's more, many just finished investing in Toyota's "Image USA I" plan; they don't relish spending another $1.5m to go to a totally different look. Dealers are telling Toyota: "show me the money." "GM and other brands offer… interest-free financing for their facility program to help you out," a suitably anonymous dealer reports. "But Toyota doesn't."  

By on March 17, 2008

06_08tundrasport.jpgTiming is. Everything. ToMoCo spent $1.28b to build a state-of-the-art, full-size, full-size truck plant in Texas– just as the pickup market was starting to tank. The new state-of-the-art factory can crank-out 300k restyled Tundras a year. As production began, the Japanese automaker set a relatively low (for trucks) sales goal of 200k Tundras for the first year. They just fell short, in spite of Detroit-level incentives. Then, with the truck-based SUV market softer than Sponge Bob at bath time, Toyota's launched the redesigned Sequoia. So now Automotive News [sub] reports that they're cutting production of both vehicles. ToMoCo won't reveal the extent of the cutback, but they say they'll throttle back production rather than laying off workers. You have to wonder if and when Toyota may admit defeat, move Tundra production back to Indiana and convert the San Antonio plant to Camry, Corolla or even Prius production. ©2008 ttac.com

By on March 17, 2008

oil-rig.jpgWho profits most when you pay $3.28 for a gallon of gasoline? Taking their cues from the mainstream media, many people blame oil speculators for driving-up the prices. According to CNNMoney, they don't actually get a cut of the price. Some traders profit by correctly predicting the change in prices, but others balance that by losing money. Meanwhile, only about seven to 10 cents of the retail price goes to gas stations; which make more money selling legal drugs (caffeinated beverages, artery-clogging, obesity-reinforcing snack foods; cigarettes, lottery tickets, etc.). Federal taxes account for 18 cents; state taxes average 22 cents/gallon. Shipping and storing fuel costs between 23 and 26 cents/gallon. Refiners like Valero, Sunoco or Frontier charge about 24 cents/gallon, but get squeezed when oil prices rise quickly. That leaves crude oil suppliers like BP, Chevron, ExxonMobil, Petroleos Mexicanos, Petróleos de Venezuela and Saudi Aramco. They take the lion's share: roughly $2.04 per gallon. And now that gas is averaging $3.285 a gallon, they make even more. But then, it's one of those risk reward deals. And these calculations don't include the cost of U.S. military efforts in oil-producing regions. Or an eventual federal bailout when one of the D3 goes belly-up. Or a lot of other things, really. 

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