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By on April 23, 2008

audi_r8.jpgO.K., after we recorded this daily podcast, Jonny Lieberman and I figured-out who's who in terms of brand positioning in the U.S. market these days– if only to make Matt Hardigree jealous. (Pay no attention to my branding statement in the actual 'cast.) We reckon… Lexus is the new Mercedes. BMW is the new Audi. Audi is the new BMW. Mazda is the new Honda. Hyundai is the new Ford. VW is the old Hyundai. Kia is the new Mercury. Toyota is the new GM. Chrysler is the new Studebaker. As for the rest, I need one. Feel free to complete the picture, argue the points or just listen to us schmooze.

By on April 23, 2008

241tifjpgcopy13.jpgEveryday it seems more and more manufacturers are turning to DSG-style solutions for cog-swapping. Just yesterday Farago reported that Porsche is finally getting into the dual-clutch game (and seeing as how they pioneered the technology back in the day, why not?) But, why? Automatic transmissions make most of the people happy most of the time. However, if "performance" is the second, third or even fourth metric you consider when purchasing a car, slushboxes suck. By giving the people the means to shift for themselves, a bit of that suckage is mitigated. Up until the semi-widespread adoption of dual-clutch systems, manumatics have always been a major let down. Clutchless manuals have been even worse (I'm looking at you, Maserati). Both Farago and Berkowitz have been unrepentant in their love of Volkswagen's DSG solution, yet I still think it pales in comparison to a stick and a clutch. It's fast, sure, but where's the feel? Where's the art? Plus, I didn't spend years perfecting heel-and-toe downshifts for nothing, did I? Anyhow, what do you think?

By on April 23, 2008

02.jpgOne of the fastest rising stars in the auto-journo biz, Matt Hardigree, got a chance to pilot the not-quite-yet-on-our-shores Suzuki Swift around Jake and Elwood's old stomping ground, Joliet, Illinois. His take? This is not your junior high science teacher's crap-box Geo Metro. As you are well aware, and as Hardigree points out, American streets will soon be filled with Ford Fiestas and Mazda2s (and hopefully Fiat 500s!). Therefore Suzuki would be wise to bring their competitive world car over here and cash in on our rapidly rising gas prices. Mr. Hardigree got his grubby mitts on the slushbox Swift, which coupled with a 100 (or so) horsepower 1.5-liter mill, wasn't exactly noteworthy on the straights. But he did like it "batting around corners." Seeing as how the Swift weighs in at just 2,400 pounds, I'll go ahead and predict that the manny-tranny version would be quite a sweet little package. Especially if they ditch the rear drums for disks when it finally comes our way.

By on April 23, 2008
ford_winstar5.jpgWhile we here at TTAC like to pretend we know everything, we don't. Don't know everything, and don't pretend to know everything. For example, why is Ford sales analyst George Pipas talking about U.S. minivan sales? As Bloomberg reports, Ford's Windstar minivan sailed into the history books back in '06. Apparently Pipas' sliding door fixation stems from the fact "The company later this year plans to roll out the seven-passenger Flex, a 'car-based vehicle it's aiming to sell to families that don't want a traditional minivan.'" Oh, so American car buyers don't want minivans but they do want a family vehicle, to the tune of some 100k+ Flexible flyers per year. Gotcha. Only why would Ford's stat man then advertise the fact that "industrywide U.S. sales of minivans may fall to a 23-year low this year… as more consumers turn to smaller cars" [emphasis added]. Or email someone and point-out that "In the 1980s, minivans were America's family car. Today, this category is approaching niche segment status"? Hell if I know. 
By on April 23, 2008

l-m-sign.JPGFord PR is blooming all over! On the same day that The Detroit News declares that "Ford's recovery gaining traction," page one of The Wall Street Journal claims "Ford Eyes More Cuts As Recovery Advances." Readers of both pieces will find plenty of reasons to be cheerful: cultural change! lower labor cost (eventually)! common components! reduced development time! positive operating cash flow! less brands! more filling! So… who wants to talk about Ford's U.S. market share? Mr. Hoffman? Mr. Spector? Do we have to do EVERYTHING around here? FoMoCo's market share dropped from 15.1 percent at the end of 2006, to 14.2 percent at the end of 2007, to 13 percent this April. Big deal. "I don't care what market-share level you are," Mr. Mulally told the Journal. The goal is to "get back to profitability." Oh, and the New York paper says "According to people close to Mr. Mulally, he is looking at selling Volvo despite Ford's repeated statements that it intends to hang on to the brand. Similarly, he hopes to shutter the ailing Mercury brand." Hopes and dreams. Drive one!

By on April 23, 2008

x08ch_ma072.jpgWhile we await GM's next Next Big Thing, one of The General's generals is touting one of its last next big things: the new Chevrolet Malibu. Speaking to the Detroit Free Press, Chevy Chief Ed Peper revealed that "38% of Malibu buyers are trading in a non-GM vehicle, another key goal, and that the Camry is the car most frequently traded in." So, what time period are we talking about? Since the new 'Bu debuted? Last month? Quarter? Not specified. If Ed's talking about March, 38 percent of 15,082 total sales equals 5731 Camry defectors. During that same month, Toyota sold 40,487 Camrys. Oh, are those stats for ALL Malibu sales– including fleets– or just retail? Not specified. But hey! The International Tribune reports that GM's new six-speed gearbox has finally made it to the four-cylinder Malibu. What's more, it bumps highway mpgs by two, beating Camry and Accord by one (and equaling the Malibu Hybrid's highway rating). Unfortunately, the new 'Bu's new box is restricted (until next year) to the $27,745 LTZ trim level– $7500 more than the four-speed base 'Bu. Or $7975 more than the base, five-speed Camry. We now return you to your regular cheerleading.

By on April 23, 2008

7000725-0-large.jpgMotor Authority reports that the Dutch Cycling Federation (their equivalent of AAA) is calling on the Dutch government and the auto industry to make externally-inflating airbags standard issue on all cars. The external airbags would inflate upon impact with a cyclist or pedestrian, absorbing the impact and potentially saving lives. Swedish supplier Autoliv has developed such an airbag already, and Jaguar and Nissan have tested pop-up hoods which deflect pedestrian impacts in a similar manner. Of course, these technologies are too expensive to be included as an available feature on any vehicle, but that isn't stopping the Dutch Cyclists Federation. The spandex crowd claims that by making these technologies standard issue, some 60 lives could be saved each year and some 1,500 injuries prevented in Holland alone. If required by law, the expense would also probably cause most automakers to exit the Dutch market (score one for the cyclists) but at least it might make for some cool "Jackass" stunts. Critics say that cyclists are responsible for their own safety, and that several companies are currently developing an airbag-equipped vest for cyclists. Not that making people pay for their own safety makes any sense…

By on April 23, 2008

hal9000.jpgIn yet another technological answer to a question nobody is asking, Indian IT firm Satyam is developing an in-car entertainment/connectivity platform which will choose your music for you based on a proprietary "mood sensing" technology. The development is part of Satyam's "dot auto" initiative, which combines GPS navigation with internet access, video conferencing, social networking, electronic money transfer as well as other applications which have no business in an automobile. The wildest promise by far of the hardware-software development is the "mood-sensing" stereo, which will respond to the number of passengers and the destination input into the navigation system. Satyam R&D chief Venkatesh Chandrasekaran says that, for example, "the system would detect if a driver had passengers and was heading downtown, and perhaps cue up some party music. On the other hand, if the driver is on his own, the system will not cue up 'sad, moody music.'" Because who wants to drive by themselves while listening to "Everybody Hurts?" Chandrasekaran expects the system to be market-ready in 16 months, and the company is already talking with potential customers in the auto and broadband fields. We look forward to hearing our stereo sing "A Bicycle Built For Two" in a pathetically diminishing voice as we pull out its memory chips out sometime in the next few years.

By on April 23, 2008

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To celebrate Earth Day, Transportation Secretary Mary Peters unveiled new CAFE standards: 35.7 mpg (cars) and 28.6 mpg (trucks) and 31.8 mpg (combined) by 2015. The Detroit News (DtN) condemns the announcement for "moving the goal post." Fair enough; Congress has already mandated a CAFE standard of 35mpg by 2020. The DtN reckons compliance with the new, new standards will cost automakers $47b over the next seven years. Why bother? The ed board reckons consumers are already voting for more efficient cars with their pocketbooks, pointing to a 12 percent drop in light truck sales in the first quarter of '08. Either way, the industry is the victim. "The federal government… continues to draw a bead on the auto industry and is doing nothing to ensure that there will be a market for the smaller, lighter vehicles its fuel mandates will require if gasoline prices decline from their current levels." In defense of the paper's stance, a gas tax would accomplish all of the government's goals with less intrusion and regulation. But congress and consumers ("Where's MY fuel tax holiday?") simply don't have the backbone to turn and face the strange.
By on April 23, 2008

suzuki-sx4t-5.jpgIf you know me, you know I like Suzuki's SX4. A lot. In fact I'm making my girlfriend cross shop the SX4 for when her dying Focus finally gives up the ghost. But what about me? No, I wouldn't buy an SX4 because I'm a leadfoot. But what if Suzuki and Road Race Motorsports got together and slapped a turbo kit on the SX4, boosting power from 143 hp to 221 hp and torque from 136 lb-ft to 208 lb-ft? Where do I sign up? We're talking about the new SX4t Concept (the "t" stands for Turbo) and along with much more grunt they're throwing in sport springs, 17" Rota wheels, a carbon fiber hood and a decidedly oddball-looking paint job. They also yanked off the roof rack. Inside you get drilled pedals, sports seats and a proper wheel. For anyone tsk-tsking the fact that a WRX wagon has more power than this amped-up tuner, please remember that the WRX tips the scales at 3,252 lbs, whereas the SX4 is just 2,800 lbs. Expect the kit to add $5,400 to the SX4's price, bringing the total to $21,000. That's still less than a MazdaSpeed3 and you get standard AWD. Once again, where do I sign up?

By on April 23, 2008

x08ca_dt001.jpgGM will resume production of Lucernes and DTS' at its Detroit-Hamtramck assembly plant on April 28, ending a four-week shutdown. They had closed the plant because of a parts shortage caused by the American Axle strike. GM won't say where the axles are coming from; the Detroit News quotes "sources familiar with production" as saying only they're buying parts "from another supplier." At the time of the closure, GM had a 111-day supply of Lucernes and a 57-day supply of DTS. Now that they've gone a month without any new product entering the pipeline, their inventory should be a bit more in line with sales. Let's see how long it takes "other suppliers" to come up with the parts to restart other plants affected by the AA strike as their  inventory levels come down into a reasonable range.

By on April 23, 2008

spirit_18foamhand.jpgThe Detroit Free Press reports that Toyota has taken GM's position as the top seller of cars in the world. Toyota announced yesterday that it had sold 2.41m vehicles the first quarter of this year, compared to longtime volume champ GM, which sold 2.25m vehicles. Of course, Toyota beat GM in the first quarter of last year only to have the General pull out a narrow victory to hold on to its top spot for the 76th year running. Toyota has surpassed GM in production volume, and with global sales up 2.7 percent this quarter while GM's sales dropped less than one percent, this could well be the year they drive old Dixie down. So to speak. Not that the General would even stand a chance if it had to rely on the American market, where its sales are down ten percent. Curious why the fifth largest corporation in the world is having its lunch eaten? There are a few Deathwatches for that!

By on April 23, 2008

bilde.jpegYesterday the Indian auto parts maker Argentum Motors said it intends to gain a majority interest in the sickly French auto body maker Heuliez. They're in discussions to release Heuliez from the French equivalent of Chapter 11. In operation since 1920, Heuliez has built some respectable cars including the current Opel Tigra, the Peugeot 206CC, the Citroen XM station wagon, and the Peugeot 407 Macarena and Dacia Logan Edelweiss concepts. Argentum's acquisition illustrates the contrasting strategies between Indian and Chinese automotive companies. The Chinese prefer organic growth, and would rather develop/steal their own car-making knowledge. Indians companies, staffed as they are with cosmopolitan managers, seem to be more intent on expansion through buying foreign companies.

By on April 23, 2008

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When launched, the Infiniti Q45 was infinitely more desirable than Lexus's stuffy LS400. Unfortunately, Lexus had already eclipsed Mercedes as the brand Black Sea immigrants asked for by name, and BMWs remained the must-have nouveau riche accessory. Although today's M45 is best-in-class, BMW 5-Series' still runs the schoolyard. Meanwhile, Infiniti (and everybody else) is striving to wrest control of the all-important, profit-laden next class down. So how does Infiniti's AWD 3-Series fighter stack-up?

By on April 22, 2008

martha-stewart-sirius-satellite.jpgDid you know that Martha Stewart has a horse farm in Connecticut? Well, duh. You can't get any WASPier than Martha Stewart, and a wealthy WASP without a Connecticut horse farm is like a Detroit executive without a Gulfstream. To her credit, Suzy Homemaker on Steroids takes that old "I had a farm in the Constitution State" thing to the next level. According to Vanity Fair, the animals inhabiting Stewart's antebellum mansion equivalent are all black. Goats, sheep, dogs, cats, horses– all black, all the time. No really. Get this: because black horses' coats can turn auburn in the summer sun, Princess Tippy Toes II has instructed her horse people (as opposed to horsey people) to keep the equines in their stables until dark. Now that's something with which this OCD automotive website editor can identify. So when I saw Martha Stewart vintage chardonnay at the package store (booze shop to you non-New Englanders), I just had to quaff. It was/is immaculate. And bland. Boring. As featureless as a base Chevrolet Aveo. More specifically (if equally automotively), Martha's tipple reminded me of Toyota, Lexus and Scion. Which got me thinking. If Detroit has anything left to add to America's automotive scene, it's soul. The Chrysler 300C had soul. The Ford GT had soul. Other than that, what? Mustang? Nitro? Malibu? And if American soul isn't a gas-guzzling V8, as it can no longer be, what it it? And while you're contemplating that conundrum, Justin and I discuss the day's car news. 

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