On Monday, when we reported on Audi's newly revised turbocharged four-cylinder engines, commenter Joshvar said "Still no DSG?" Well, according to Ward's Auto, now there is. Audi is finally moving ahead with a dual clutch transmission (DCT). Supposedly, they developed the new box completely in-house (BorgWarner makes the current DSG in the A3 and GTI). Ingolstadt's version offers seven (count 'em seven) gears and can handle up to 406 ft.-lbs. or torque. On top of that, it's been specifically engineered for the longitudinal setup of engines throughout Audi's lineup. This writer's guess: as soon as they can make enough of them, there will be a DCT available in every car Audi sells. Now, where the Hell is Porsche's paddle-shifted semi-manual miracle?
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Just before 8 A.M. yesterday a Concord, CA police officer responding to an emergency call was driving on the 3600 block Willow Pass road with lights flashing and siren blaring. A box truck yielded to the right. In doing so, the truck driver "clipped the bottom of a wooden PG&E power pole" at the intersection of Ashdale and Willow Pass roads, shearing it off near ground level. The pole, replete with streetlight and attached electrical cables fell across the top of the truck. The wires ended-up draped across both lanes of the roadway. The Contra Costa Times reports that a motorcyclist then drove into the low-hanging wires, which knocked him clean off his bike. Thankfully, he wasn't electrocuted on the spot (or, as far as we know, later). Oh, and the name of the company that's boldly printed in large black letters on the side of the pole-clipping white box truck? "Clean & Sober Hauling" of course!
When the chips fell, Jaguar and Land Rover (JLR) went for $2.3b to Tata Motors. After a tumble in Tata's stock price several hours ago (on the Indian exchange), shares in the Indian automaker closed only 0.1% down for the day. And what of Ford's immense legacy costs? The Blue Oval Boyz are reportedly contributing an additional $600m to JLR pension plans. Automotive News [sub] reports that FoMoCo will supply powertrains, technology and dealer financing during transition. If there was any doubt before, it's clear for all to see that Ford was ditching a liability rather than raising operating cash. Given the tens of billions Ford dumped into these two British brands, the sale makes perfect sense. But what now? How does the sale impact product and marketing plans for Lincoln and/or Volvo? And what happens to the brands cut adrift? What of Jag and Land Rover, their image, and future products? Be on the lookout for a full-length editorial exploring these issues…
Chrysler cars are the industry's style leaders, at least according to Kelly Blue Book. In a press release dated yesterday, Chrysler proudly proclaims they won "Best Exterior Design – Non-Luxury Sedan/Coupe/Hatchback," one category of the 17 different KBB Brand Image Awards handed out at the New York Auto Show. The awards "recognize automakers' outstanding achievements in creating and maintaining brand attributes that capture the attention and enthusiasm of the new-vehicle buying public." The press release didn't say which specific model led to the award, but the Aspen and Town & Country are eliminated by the category. The PT Cruiser has been around since Bob Lutz was a Boy Scout and the 300's long over-due for a re-do. That leaves the Sebring as the style leader that "captured the attention and enthusiasm of the new-vehicle buying public." If the Sebring displays the essence of Chrysler's "brand attributes," that explains everything you need to know about why the company's on life support. Just sayin'.
In a move sure to annoy potential GT500KR owners– who were banking on the supply – demand equation to protect their $65k-ish (plus premium) investment– Ford has announced they're gonna build more examples than previously announced. The original plan, from the caption of their PR photo: "Featuring classic Shelby KR design cues and Ford Racing performance upgrades, the GT500KR will be produced in a limited-run of 1000 units arriving spring 2008." Ward's Automotive reports the new plan: an additional 746 GTK500Rs. "Of the additional 746 units, 571 will be allocated to U.S. customers, thus equaling the 1,571-unit production run of the original ‘68 Shelby GT500KR." So that's alright then. “I’m glad we can share it with more Mustang enthusiasts,” 'Ole Shel says in a statement. “This car is really special to me and my bank account demonstrates that when Shelby Automobiles gets together with Ford SVT and Ford Racing, we can deliver a Mustang that will compete with the best in the world.” Roush and Saleen would agree, albeit through gritted teeth.
Farago said it might never happen, but it did: Tata's bought Land Rover and Jaguar. Bloomberg says the announcement will come tomorrow morning, perhaps even before the NYSE opens for the day. Tata has purchased Land Rover and Jaguar for $2.65 billion, or about the cost of dinner for four people at a pub in London. As we've said all along, the best English high tea in the world isn't served in England; it's in Hong Kong and India. So 150 years after flooding China with so much opium that the Chinese government started two wars with England to get it to stop, Chinese businesses bought what remained of Rover. Now the Indians are having their turn, as Indian industrial giant Tata (recently in the news for selling the cheapest new automobile in the world), have completed the deal to buy the former crown jewels of the British automotive manufacturing industry, Jaguar and Land Rover. Ford purchased Jaguar in 1990 for $2.5 billion and Land Rover in 2000 for $2.73 billion, making this a multi-billion dollar loss even if they hadn't been operating the companies for a total of 25 business years. Here's to hoping for a brighter future for these storied companies.
It’s getting close to the first anniversary of Chrysler going to the dog. While there’ve been job cuts and “market adjustments,” the shoes are still hanging. Chrysler is still a long way from being profitable. But it appears to be an equally long way from breakup. What exactly is planned? The truth may be that Cerberus isn't “planning” so much as “waiting.”
Unique Performance was known for replicating the quasi-classic "Eleanor" Mustang movie car from retro-remake of Gone in 60 Seconds blockbuster, with Carrol Shelby and Chip Foose as partners in crime. Literally (well almost, they both bailed when the bailing was good). Unique got busted for tampering with the VIN numbers of Detroit's finest, and selling "futures" on Mustangs they had no intention of resto-modding and, worst of all, building cars with buckets of Bondo. As the criminal trials proceed, the company's assets are now on the block. It's a Strip 'N Flip job that'd bring a tear to Cerberus' eye, offering everything from $20 refrigerators to an "I'm an upstanding citizen" bulletproof AMG Benz for $8200. Unique's remaining not-ready-for primer-time vehicles will be sold "as is, where is, without warranties."
Remember how US bumper regulations ruined the design of 1970s Porsches and so many other cars? Although the U.S. now has integrated bumpers (that defeat the purpose of minimizing costly repairs from "fender benders"), we still have a requirement for butt uglification. In looking at pictures of Honda's upcoming subcompact car, the 2009 Fit, I realized just how much our regulations affect car design. In this particular example, the American version is much longer – especially up at the front, where it seems like there must be an extra two feet ahead of the front wheels. The example should serve to remind all of us of one of the litany of complications that comes with Americanizing a car for sale. And back on the topic of the Fit, the shorter Japanese version looks better.
We reported earlier that the smart money is getting out of OEMs and into parts and used sales. Business Week confirms that while new car sales are tanking, used car sales are on the rise. A Wachovia survey of 40 vehicle retailers shows an increase in used car sales; 28 percent of dealerships indicated that their used car sales were above expectations. Dealers are also reporting greater inventory pressure for used cars, along with greater than expected demand for pre-owned vehicles. Online research companies are also showing significant increases in searches for information about used cars. "Although there was some seasonality, we believe many dealers have lowered their expectations and new car intenders maybe switching to used cars," says Wachovia's Richard M. Kwas in a letter which accompanied the report. "In general, dealers conveyed that prospects are more interested in used vehicles over new." Good news for some, bad news for others.
Captain Farago opened up a can of angry worms earlier today when he reported that the New York Times hates Bush and wants to increase the gas tax. After lots of healthy debate, Robert interjected, "Can someone remind me again why we want to reduce gas consumption?" Excellent question. Well, aside from the obvious (life-threatening global warming, billions and billions of dollars– or is that trillions?– being pumped into questionable Middle Eastern regimes) there is the fact that the IRS thinks I owe them $3k. And since I've been paying $3.89 a gallon for the last few weeks, I don't have so many extra pennies to ship off to Washington. But hey, it's not all about me. Why are you concerned about gas consumption, gas prices, alternative propulsion and oil? Patriotism, environmentalism, cheap bastardism? How and when did the realization occur that something must be done?
In the interest of presenting readers with a different point of view about GM Car Czar Bob Lutz and General Motors' "turnaround," I submit Nicolas Van Praet of Canada's Financial Post. In his latest article, Van Praet declares GM's turnaround well under way, led (of course) by Maximum Bob. Praet is privy to the figure; The Big 3's market share has declines from 65 percent in 1990 to below 50 percent today. On the plus side, the new Malibu has an average lot life of only 15 days– the equivalent of "Hot Cakes" in GM's universe. As further "evidence" of GM's turnaround, Van Praet points out that the current slate of Pontiac commercials running in Canada. The spots feature Japanese car executives rendered quivering wrecks by… the Pontiac G5. Praet calls the commercials a sign that GM is now "gaining confidence." Yes, well, in 2007, the the Cobalt was the highest finishing domestic in Canada's top five. Even if you combine Cobalt and G5 sales, they still fall below the number one finisher, the Honda Civic. FYI, here are last year's Canadian top ten.
"Sources close to the Tata/Ford deal" have been busy little bees lately, shooting out sad little insights into the clunky sale of Jaguar and Land Rover. If we can believe these anonymous tipsters (and Reuters clearly does), the deal is done, and Ford will be announcing the sale tomorrow. One of these nameless, faceless dealmakers slapped down the suggestion that Ford would get $2.65b for the two brands, telling Indian TV "You have to come south from that (number) by quite a bit." But as with most leaks surrounding this deal, Tata reps refuse to play ball. "We have nothing to tell you now," they tell us. So is the deal happening tomorrow, or later, or not at all? With all of this conflicting information going around the media grapevine, we're not committing until the officially announcement, and maybe not even then (show me the money). Yea or nay, the fine print on this deal or no deal should make some very interesting reading.
Car fatality rates are at historical lows, thanks in large part to steady increases in vehicle frame strength and rigidity. But as Newsweek reports, tougher vehicle frames make it harder for rescue teams to reach trapped passengers after a crash. Highway rescuers must purchase ever-more-expensive extraction tools to keep up with increases in frame strength, and are forced to work deeper and deeper into the "golden hour" between the accident and emergency-room treatment. Rescuers also have to be careful not to puncture hidden pressurized-gas cannisters (which fire side-impact airbags) or hidden electrical lines, requiring extra time to peel away interior plastics before extraction can begin. With rescue times climbing past the ten-minute mark and rescue equipment costing even the smallest towns upwards of $50k, there's a case to be made that stronger is not always better. Add this to our own reporting on the downsides of strengthened roof crush standards, and the automobile safety picture becomes increasingly… complex.
The MinnPost reports that the local E85 lobby is joining the Minnesota Auto Dealers Association's opposition to California-style emissions standards. Although ethanol had been [tortuously] justified as an eco-friendly fuel, Minnesota corn growers say the standards would "make it difficult to certify E-85 vehicles." (This despite the fact that California has already certified 300k flex-fuel vehicles.) James Erkel of the Minnesota Center for Environmental Advocacy argues that the corn growers have stopped making sense. "These bills would not curtail ethanol markets and in some respects actually help it." Erkel added that the new regs wouldn't affect Minnesota's attempt to "upgrade" its E10 fuel to 20 percent ethanol. But the Minnesota Auto Dealers Association have convinced their agricultural pals that stricter-than-the-feds tailpipe standards would kill the market for new pickups and SUVs, including flex-fuel versions of same.


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