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By on April 30, 2008

f4.jpgThe Thatcham Institute tests cars for the UK's insurance industry. Why not just rely on the pan-European NCAP (new car assessment program)? Because NCAP is only about survivability, not all aspects of car safety. One yet-missing factor which Thatchham is testing is whiplash protection. For the insurance industry, whiplash is a big issue. Not only do scamsters like to feign whiplash, but there are thousands of real, disability-causing cases each year. How will the trend towards smaller cars influence whiplash rates? According to tests published yesterday, city cars are the least effective in preventing whiplash in low speed rear end collisions. Fiat's 500 got a "marginal" rating for safety. The only two City cars to achieve an "acceptable" rating were the Renault Twingo and the Smart Fortwo. Two thirds of the (larger) supermini cars tested were rated as "marginal" or "poor". Renault's Modus was the best smaller car with a rating of "good." Thatchham: "You now have a choice at almost every price range."

By on April 30, 2008

identity_theft-740304.jpgBlogging is a crazy game.The sheer size of the internet means you can always get more traffic, and the best way to do so is to spark a little controversy, however unintentionally. [Ed: words to live by.] Take Secretary of Transportation Mary Peters' new blog fastlane.dot.gov, for example. In Ms Peters' rush to create "a true on-line community," she didn't realize the name "Fastlane" has already been taken by GM, no less. While it's great to see government and industry competing rather than colluding, you'd think that Peters could have had an intern do a quick Google search for "fastlane blog." As Ms. Peters says "If I'm going to insist on twenty-first century solutions for our transportation system, I better communicate in a twenty-first century way!" As of writing, GM has yet to take umbrage. As keen observers of FoMoCo's thetruthabouttrucks.com, we'll be content to enjoy the unfolding controversy from an editorial distance.

By on April 30, 2008

made-in-the-usa.jpgWhen I was a kid, the family car was American. Not just American, but GM– thanks to a lemony Ford Falcon my mother owned in the 60s. My Dad, however, was a fan of foreign metal. So my sister and I got stuffed into the horrendous backseats of a Renault 8, a Honda Civic CVCC and a Datsun 280Z 2+2. Once we hit soccer practice age, those were dumped in favor of a never-ending string of Pontiacs, Buicks and Chevrolets. We never bought German cars (Nazi associations). Actually, more acurately, my mother would never let my father buy a German car. I didn't even know my old man liked German cars until one day, when I was 13 or so, I dragged him to a Porsche/BMW dealer. He sat in a BMW M5 for a good 30 minutes, just day dreaming. On the flip side, people often tell me they'll never buy an American car. Ever. What's your stance on buying American?

By on April 30, 2008

hybrid_synergy_drive.jpgAfter all the fuss and negativity (I'm looking at you, Justin) about the upcoming new Prius gaining three to four inches (still shorter than a Corolla) and some additional power, the really big news was left off the table. According to Auto, Motor Und Sport (paper version), Toyota has achieved its most important goals for the gen3 Prius: a 50 percent reduction of the hybrid components' weight and cost. In the words of a Toyota manager: "Our hybrid will then be cheaper than a modern diesel." Given that the new Prius will have a substantially more powerful electric motor and battery range than the last gen, this is impressive stuff. Despite Volt vaporware, or perhaps because of it (thanks Bob!), it looks like ToMoCo's gas – electric sedan is set to continue its domination of the American hybrid market. Last month, in a VERY down market, Prius sales rose 7.7 percent to 20,635 units.

By on April 30, 2008

x08ch_ma059.jpgFor every cloud there's a silver lining, or so goes the expression. Well, we learned earlier that GM managed to lose itself $3.25 billion in the first three months of the year. Oops. One upside: they're used to it. The other: the born-again Chevrolet Malibu seems to be doing what no domestic sedan has been able to do since Robocop's Taurus. Yes, the new 'Bu's pilfer sales from the Japanese marques. J.D. Power reports [via the lads at Motor Authority] that (nearly) 20 percent of the cars traded-in for new Malibus are foreign nameplates. That's up from 12.5 percent. And the Bu buyers weren't just trading in their Kias and Hyundais, either. Toyondissans accounted for 9.7 percent of the cars used as partial down payments for the Americanized Opel. [NB: What they didn't say is that almost 60 percent of the trades were GM products.] End of the beginning? Beginning of the end? Regardless, more like the Malibu seems to be the only path worth taking.

By on April 30, 2008

radi.jpgDean Radin believes some people are psychic. No surprise there; investigating psychic phenomena is what Radin does for a living. And yet, when author Mary Roach asked the electrical engineer if there's a middle ground between believing that the dead contact the living through electromechanical devices and viewing the whole thing a hoax, Radin said "The middle ground between genuinely true and outright faking is unconscious delusion." Welcome to GM's world. 

By on April 30, 2008
durango3.JPGAs U.S. fuel prices head for $4 a gallon, US News and World Report takes a look-see at SUV resale values. The mag divines that weakening demand has dramatically eroded resale values. (Ya think?) Citing a CNW Marketing Research study, USN&WR says March sales of used SUVs are down 14 percent from last year, after dropping eight percent in the first two months of this year. The story also kicks some journalistic tires at used car lots, where dealers no longer want to stock large vehicles. A Sales Manager from a Florida Chrysler/Jeep dealer says "some large vehicles are dropping thousands of dollars in value each month… Anything diesel has dropped $5,000 in the past five months." So where are all the body-on-frames going? Overseas, according to the Sales Manager of a Florida Nissan dealership. Apparently (hey it's a used car dealer), the store's been exporting about one car a month" in recent years. But this year they average "roughly 10." (Roughly? Would that be, say, five?) Add nasty depreciation onto huge operating costs, and it's not hard to not see the future of the SUV.
By on April 30, 2008

newjettacropped.jpgTorque and towing aside, I am a diesel skeptic. These Interstate soot-belchers are on par with the jerk that pulls his finger and farts in a crowded room, laughing at everyone in his wake. And now that the good oil is far north of $4 a gallon, I feel truly vindicated. Or not. That's because my girlfriend needs a new whip, and her ultra-clean 2006 Jetta TDI took a serious depreciation hit. Not buying it? Neither is Carmax, to the tune of $2125 less than KBB's trade in value, over $2800 less than Edmunds. The No-haggle Superstore's appraisal said it all in two words, the "market conditions" are a changing. Sure, this ain't no Carter-era diesel Cutlass, but Jettas aimed at enviro-friendly gas savers just met the cruel reality of history repeating itself.

By on April 30, 2008

ghosn.jpgWhile the chattering classes clamor for a fully-realized Nissan/Renault hookup with Chrysler, Nissault CEO Carlos Ghosn is in no rush to commit further to the U.S. market. In an interview with Business Week, the Brazilian/Lebanese wunderkind say the the American new car market isn't climbing out of the crapper anytime soon. "This year in the U.S. is going to be down, between 15 million and 15.5 million units for total vehicles [including light commercial vehicles]. Next year I think will be down as well.. I don't think auto sales will really stabilize until 2010. The U.S. auto market is not going to be great again. It has all the characteristics of a mature market." Ghosn also predicts (among other things) the increased prominence of small cars in the U.S., the rise of electric cars (including a Renault/Nissan for sale stateside by 2010), the resurgence of the U.S. as an exporter of commercial vehicles, and the unlikeliness of Chinese and Indian vehicles for sale in stateside. Lottery numbers upon request.

By on April 30, 2008

ethanolpump.jpgLast year, the Canadian government initiated an "aggressive push" to produce fuel from crops. The 2007 federal budget included a C$2.2b support package for biofuels. According to a report in the Globe and Mail, "political consensus in favor of biofuels is suddenly breaking down." Member of Parliament (MP) Keith Martin thinks it's time to step back and "put a moratorium on it now so people can actually wrap their heads around the facts; the current biofuel strategy is deeply misguided." The president of the Canadian Renewable Fuels Association claims "the issues that come up have nothing to do with food supply."  Gord Quaiattin says concerned Canadian should blame rising oil prices for food costs. "Everybody's screaming about 'food for fuel'; it's too bad we can't have a rational debate in this country," sighs MP David McGuinty. Still, it may be too late to shut the door: the government has poured billions into a biofuel facilities fund. Fourteen plants are running already and six more being built- so this horse may have already left the barn.

By on April 30, 2008

data1.jpgAnd this, folks, is just the beginning. Or the end. Or the beginning of the end. Whatever you call it, however you look at it, GM's $3.25b first quarter financial loss makes a mockery of CEO Rick Wagoner's $14.4m annual compensation, and eliminates any hope that GM's foreign markets can keep the corporate mothership afloat. As Bloomberg reports, the number would have been even more horrific if not for GM's international growth. "GM's European profit grew by more than 18 times to $75 million. The Asia-Pacific region and Latin America-Africa-Middle East region doubled earnings to $286 million and $517 million, respectively." Meanwhile, "GM had an $812 million pretax loss in North America, its largest region, wider than the $208 million deficit a year earlier." And if you think things will be better stateside in the second, third or fourth quarter, what with strikes and tanked SUV and pickup sales, you need to be working at GM. Otherwise, no one will believe you. [Read General Motors Death Watch 175: Phone Calls from the Dead for a full analysis.]

By on April 30, 2008

x08bu_lc055.jpgNormally, driving a car with a stonking V8 engine powering the front wheels is like watching Michael Moore and Rush Limbaugh make out. It's so wrong on so many levels. Can you squeal like a pig? Just so. Will that pig's snout dart about like an amphetamine-crazed truffle-sniffer? Uh-huh. But here's the kicker: what if it doesn't? And what it you, uh, like it? Does that make you a deviant pistonhead? No, it makes you a closet fan of the quietly nutty, deeply cool Buick LaCrosse Super.

By on April 29, 2008

taliban.jpgCritics have long maintained that "safety cameras" (a.k.a. no-armed bandits) cause crashes. Unsuspecting drivers stumble upon a camera, hit the brakes hard and BAM! Rear-end collision. This is especially likely for motorists who suddenly catch sight of camera vans (a.k.a. "Talivans"). Well duh. The whole point of these infernal machines is to catch motorists "off guard." Otherwise, well, they wouldn't make any money catch any speeders, would they? But scientific studies and common sense will only take you so far, hearts and minds-wise. What could really turn the tide is a video of a Talivan-caused crash. And the BBC had just such a video. Only they pulled it. Which has pissed off the Association of British Drivers no end. "The video was first shown on BBC News 24 on Monday 21st April when it was bizarrely used to illustrate a misleading story claiming that 'speeding' is by far the biggest cause of accidents. The video later appeared on the BBC News website at this address: http://news.bbc.co.uk/1/hi/uk/7358372.stm, but by the next day it had mysteriously disappeared." ABD member Keith Jones said Auntie Beeb told him that the video is missing from their website "because of a technical problem." They don't know when it will be fixed and "do not provide feedback on progress." So much for tax-payer funding guaranteeing the BBC's editorial independence, transparency or accountability. Not that it ever did, mind. 

By on April 29, 2008

solo-hood.jpgFor Audi fans, Tresser was THE modifier in the 1980's and 1990's. The firm created a very quick (and sought after) Audi 5000 Turbo (Audi 200 in Europe), a Quattro convertible (capital Q), and many others. I happened to stumble upon one of Tresser's last creations, a slightly used Audi 200 Turbo quattro. While the engine, interior, and body panels were rotted, the carbon fiber hood and trunk-lid were not. Mr. Mehta and Mr. Lieberman, you can no longer call my Audi V8 quattro "fat", like me, we are both turning into lean, mean muscled machines that will obliterate all Lincolns/Volvos in our path. Quattro uber alles!

By on April 29, 2008

firebirdlogo.jpgIt's been a frenetic couple of few news days, and most of it's been bad. Especially for GM. Thirty-two GM plants are off-line, high-profit truck and SUV U.S. sales are in the tank, production's been cut, GMAC is in the the crapper and… CEO Rick Wagoner got a 64 percent pay raise! Having GM DW'ed this saga since April 2005, I'm just about ready to pronounce the company R.I.P. (New Death Watch on its way). Let's assume for a moment that I'm right: GM files for C11. It seems perfectly obvious to me that if either Democratic presidential candidate makes it to the White House, a bailout– perhaps in the Chrysler-esque form of federal loan guarantees– is a dead cert. McCain, on the other hand, went to Iowa, stood in front of the corn farmers and told them he would NOT continue federal subsidies. To use the venacular, that is some serious shit. I'm not so sure John would cut the check for GM. But should he? One way or another, GM employs millions of people. What kind of deal should the U.S. gov'mint cut with GM? Or… not?

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