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By on April 15, 2008

anycar.jpgLet's recap. Chrysler builds pickup trucks for Mitsubishi. Chery is working on a U.S.-market subcompact for Chrysler. Chrysler is selling a rebadged Chery as a Dodge in Mexico. Volkswagen is selling Chrysler-built minivans in the U.S. Nissan is building small trucks for Suzuki to sell in the U.S. and Versas to be sold as Chryslers in Brazil. Chrysler has been talking with Great Wall Motors in China about something. Now, just in case all these relationships aren't confusing enough, The Detroit Free Press reports that Chrysler and Nissan announced Chrysler will build a version of the Ram pickup in Mexico for Nissan to sell in the U.S. In return, Nissan will build a North American-bound small car in Japan for Chrysler. In a way, all this makes sense, particularly the Chrysler-Nissan deals. After all, Chrysler has a well-established presence in the truck and van market while Nissan and Chery specialize in small cars. All they're doing is capitalizing on each other's strengths. However, the more Nissan and Chrysler snuggle-up together, the more it seems that Nissan is testing the waters for establishing an American partner– something Carlos Ghosn has promised, eventually. Don't be surprised if in the next few years you hear that Chrysler's building vans for Nissan or that Nissan's supplying Altima drivetrain components for the Sebring/Avenger. And when Cerberus starts the flip 'n strip with Chrysler, Nissan will be right there to pick up the pieces. You heard it here first.

By on April 15, 2008

charlesgrassley.jpgSpeaking to The New York Times, Republican Senator Charles E Grassley made no secret of his contempt for "foreign officials" at a Washington conference on food prices. Grassley says biofuels are not to blame for recent food price spikes and the resulting political instability (e.g. Haiti's riots). "He questioned why they were not also blaming a drought in Australia that reduced the wheat crop and the growing demand for meat in China and India. 'You make ethanol out of corn,' he said. 'I bet if I set a bushel of corn in front of any of those delegates, not one of them would eat it.' Equally unsurprising (if slightly more conciliatory), the president of The National Corn Grower's Association says ethanol production has a minor impact on food prices and supply. "There’s no question that they are a factor," admits Ron Litterr. "But they are really a smaller factor than other things that are driving up prices." Yes, well, the Old Gray Lady reports that "a fifth of the nation’s corn crop is now used to brew ethanol for motor fuel, and as farmers have planted more corn, they have cut acreage of other crops, particularly soybeans. That, in turn, has contributed to a global shortfall of cooking oil." So ethanol might not be "the" problem, but it's "a" problem. And that's going to get… better?

By on April 15, 2008

x08bu_en015.jpgIn 280 BC, King Pyrrhus took on the might of the Roman Army– and won. In one of history’s most insightful strategic assessments, the King surveyed the corpse-littered battlefield and concluded, “one more such victory shall undo us.” Since then, the term “Pyrrhic victory” describes a conflict in which a force expends so much energy winning a battle that it loses the war. It’s a lesson General Motors seems determined not to learn. The latest chapter in this continuing saga of self-delusion: the Buick Enclave. The Enclave is a false promise that illuminates GM’s strategic poverty, and its resulting weakness.

By on April 14, 2008

bankruptcy-courts1.jpgI don't pretend to know the inside dope about the U.S. car industry. O.K. I do. But there are times when the suits' statements leave me wondering if I inhabit the same universe of cause and effect as these highly paid execs. To wit: the co-CEO of Canadian-based parts maker Magna stood up in front of the Society of Automotive Engineers and told them that the feds they should change U.S. bankruptcy laws so failing automotive suppliers can't get domestic automakers by the short and curlies. True story. Automotive News [sub] reports that Don Walker doesn't want Plastech-type failure to end up "crippling the car companies." As Justin says, that's batshit crazy. First, why should we re-write federal law for The Big 2.8? Second, why would The Society of Automotive Engineers care about bankruptcy law? It gets weirder. "Walker said the growing industry pressure has caused automakers to be more cautious in selecting suppliers. The car companies are more leery of awarding contracts to companies without a strong balance sheet or without a strong business model." So that would favor suppliers like… Magna. I thought I was wise to the ways of man. Can someone please explain this to me?

By on April 14, 2008

carmageddon804.jpgNow that Tesla's started production on their all-electric Roadster (although there's been no indication that they've delivered a single car to single paying customer), the Silicon Valley start-up is expanding their "sales territory" into Europe. The San Jose Business Journal reports that Tesla's started taking orders across the pond as of last week. Tesla's promising to deliver 250 Elise-based, lithium-ion electric sports cars into the Eurozone as of spring 2009. And here's the kicker: Tesla is asking European buyers to pay 160 percent of the U.S. price. That's $156,630 for a car that sells for $98k here in The Land of the Free. If I was an American customer who'd paid the deposit, I'd raise holy Hell if Tesla sent even one car to Europe before satisfying its aspiring American customers.

By on April 14, 2008

17547.jpgThe National Motorists Association has posted a compilation of stories from six US cities where yellow lights were shortened to increase municipal revenues. In intersections with and without cameras to bust red light-runners, in towns from California to Tennessee, local authorities have been quietly violating various state's laws regarding minimum yellow-light duration. These underhanded schemes have been uncovered by private citizens, local TV stations, newspapers and even judges, and as the NMA's conclusion to the roundup states, these six cases could be simply the tip of the iceberg: "These are only the cities that have been caught; it's likely that this happens much more than the general public has been led to believe. Many cities avoid the bad publicity involved with shortening yellow lights by installing the cameras at intersections with inadequate yellow light times from the beginning. If you or a family member receive an unjustified red-light violation ticket, it may be worth your time to check the yellow light duration at the intersection where the ticket was given out."

By on April 14, 2008

cash-loan.jpgThe Toledo Blade reports that Hillary Clinton has gone on the record saying that "if confronted with the prospect of a bankruptcy by General Motors or Ford, she would extend the resources of the federal government to help keep them afloat." The quote comes from a meeting between Clinton and the editorial board of Pittsburgh Post-Gazette, in which manufacturing policy was widely discussed. When asked about her views on a Chrysler-style bailout of major American automakers, the Senator from New York said that "for both economic and national security reasons, the next president should be aggressive in taking steps to protect and nurture the nation's manufacturing base." Of course, politicians say lots of things on the campaign trail, and the worse-off the campaign, the more aggressive the sound bites. Had the Michigan primary been rescheduled, this blank check could have gone over well for Clinton, who is seen by auto execs as "anti-car." As things stand, however, this quote will accomplish little more than pointing out the desperation of the Clinton campaign, and the obviousness of Detroit's woe.

By on April 14, 2008

64-alfa_2600-sprint_dv-07-mb_01.jpgSajeev's write up of the Lingenfelter-modded Corvette ZR-1 got my blood pumping. As almost every commenter has pointed out, it opens up TTAC to a whole new level of car-geekdom. After all, the sign doesn't say "The Truth About New Cars," does it? After my great Corvette adventure my heart is all aflutter at the prospect of spilling virtual ink all over vintage metal. But where to even start? Well, if you're me, the 1960s are the decade. Specifically the cars that ran at Le Mans. E-types, Ferrari GTOs, Daytona Coupes, GT40 and of course Bizzarinni and the Breadvan. Even the non racers were seven types of magnificent. Alfa Romeo 2600 anyone? What a magic, special time. You?

By on April 14, 2008

news-the-changing-face-of-chrysler-1.jpgThus far, the New Chrysler's (domestic) turnaround strategy has been very emo: lots of cutting and complaining, and not much else. A press release indicates they hope to turn that image around.  Trumpeting a "barrage" of technologies and innovations, they purport to offer customers improved fuel economy, performance, flexibility and convenience. Increased internet connectivity is promised on "future model-year vehicles" via combined WiFi and 4G technologies which will "transform the vehicle into a 'hot spot' to deliver Internet and e-mail access, and movie and music download capability." Rear-cross and blind-spot monitoring systems will be offered on the company's minivans, an "in-class" exclusive says the release, piggy-backing on last weeks Ford announcement. Chrysler continues its game of catch up with Ford by offering improved voice-activated systems ala SYNC, throwing in iPod integration and a swivel-screen for the backseat in minivans. The only major bone tossed to enthusiasts is a new active transfer case for 2009 AWD 300 and Charger models. The new transfer case improves traction and fuel economy, while also allowing front-axle shutoff, creating a seamless transition between RWD and AWD modes. Hey, something is better than nothing.

By on April 14, 2008

ch008_073se__mid.jpgThat's right, today Chrysler sent out a press release announcing the introduction of its six-speed dual clutch transmission (a la VW's DSG), developed jointly with Getrag. Chrysler reports that it will "provide consumers with a fuel economy improvement and CO2 emissions reduction by 6%." The new cog swapper's going in the Avenger, Sebring and Journey in international markets, initially paired with a 2.0-liter diesel engine. Wait a second… we don't have that 2.0-liter oil burner in the United States. Does "international markets" mean "places that aren't North America?" Why yes, it does! Chrysler's biggest and most important market is not getting the dual clutch transmission from the git-go. But don't kvetch. Were you really considering buying a Sebring anyway? I didn't think so.

By on April 14, 2008

tatanano500.jpgIndia's auto industry currently accounts for five percent of the country's rapidly-expanding Gross Domestic Product (GDP). According to the Economic Times of India, the government has set the sector a new goal: quintupling its size by 2016 (the red-hot Indian economy is set to merely double in the same period). By then, the auto industry should be a $150b+ segment, making up ten percent of India's GDP. The Times says economic liberalization– allowing unrestricted Foreign Direct Investment (FDI) and removing foreign currency neutralization and export obligations– has been the key to India's automotive boom. India currently builds 11m vehicles per year. Prime Minister Manmohan Singh sees the car biz as ambassadors for "Brand India;" he's courting a further $35b – $40b in FDI for the industry. That's 16m Tata Nanos, in case you're wondering.

By on April 14, 2008

fiat_logo_26_10_06.jpgMotorAuthority has it on good, um, authority that Fiat will be offering gas and diesel-electric hybrid drivetrains by 2011. Research on the powerplants is still in the early stages, says Fiat Powertrain Technologies honcho Alfredo Altavilla, and the 2011 timetable could still be delayed if the development team runs into problems. The engines are said to be a 0.9 liter two-cylinder gas-hybrid with a dual-clutch transmission, and a larger 2.3 liter diesel-hybrid four-banger. European emissions standards are clearly the motivating factor here, and the tiny gas burner is expected to weigh in at 90g of CO2 per km driven, well below 2012 European Commission standards. With Fiat jumping on the greentech bandwagon, there's only one other major industry trend that the Italian giant has yet to announce its approach to: the demand boom from the developing world. And just like that, Paul Tan reports that Fiat is planning a new entry-level world car to be released by 2010. There's speculation that it may not be branded as a Fiat (no word on whether the boffins think an entry-level car would hurt the brand, or visa-versa) but the Torino firm could pull out the old Uno or Palio badges too. With its close ties to India's Tata Motors, Fiat could be placed to compete in the nosebleed market. We'll be watching.

By on April 14, 2008

escaladead-big.jpgYou'd think with an advertising budget of over $2b per year, GM could hire an advertising agency that "gets it." But you'd think wrong. We've seen plenty of "Pontiac Is Car," which is apparently is meant to appeal to illiterate Victorian-era men more accustomed to horses. And now we have an ad for the Cadillac Escalade that declares that it offers "The best highway fuel economy in its class." Do they know who potential buyers of Escalades are? Apparently an ad man was envisioning a fiscally-conscious, sensibly green guy sitting at the computer and having an epiphany. "Hey Miriam, call the dealer and cancel our Lexus hybrid test drive. The Escalade has the best highway fuel economy in its class." A proper Escalade advertisement would sell a combination of three things: instantly recognizable styling, supreme luxury, spaciousness. Maybe if we're lucky, this same agency will do ads for the iPod adapter in the new Buick Lacrosse. Or maybe Chevy's Corvette, which offers the biggest trunk in its class.

By on April 14, 2008

shark.jpgKatiePuckrik had me all a dither yesterday. The TTAC commentator sent an email asserting that "I like TTAC, I really do, but I think it's starting to lose its way." God I hope not. Sure, we may have lost a bit of edge here and there. Maintaining our current output AND editorial quality is a daily make that hourly challenge. But it's kind of hard to "lose your way" when the name of your website is The Truth About Cars. I never have to wonder, hmmm, what should we cover today? And whenever we write about something– from a story about the auto industry to a used car review– there's never any doubt how to play it. We stick our tongue in our cheek, speak from the heart, call it like we see it and let the chips fall where they may. The Truth About Cars is who we are AND what we do. In addition, I promise you this: we will never take ourselves too seriously or take your concerns lightly. If you've got a beef with us, follow Katie's lead and let us know. Your vigilance and passion makes us stronger, and there is always room for improvement.   

By on April 14, 2008

href=”https://www.thetruthaboutcars.com/wp-content/uploads/2008/04/mpd_dwi_heel_2_toe.jpg” title=”Shee ossifer… I'm not ash think ash you drunk I am.” rel=”lightbox”>mpd_dwi_heel_2_toe.jpgThe breathlyzer ignition lock has been around for years; several courts have mandated a "blow in" device for convicted DUI offenders' cars. Automotive News [sub] reports the web site www.dadss.org (DADSS = Driver Alcohol Detection System for Safety) is soliciting ideas from technology developers for a passive system that will prevent the car from starting if it decides the driver's alcohol level is high enough to cause impairment. The automakers are already looking in that direction; last year Nissan featured a concept car with various air sniffers, sweat sensors and a facial monitoring system to deactivate the car's ignition if the driver had one too many. Obviously there's still a lot of work to do on the concept but experts estimate such a system could save 9k lives annually. They hope to have working prototypes within five years.

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