Normally with these here QOTDs I propose a question, rattle off some personal anecdotes and then ask for your opinion. Not today. No friends, today we are going to turn your attention to central France and a turbodiesel Renault Vel Satis. The driver was on the Autoroute with the cruise set to about 80 mph. He passed a truck. Suddenly and allegedly, the car accelerated on it's own to 120 mph. The driver claims he tried to stop the car, but was unable to do so. He called the police and explained his predicament. The coppers cleared the freeway in front of the Vel Satis and tracked it for an hour until it just stopped. After a thorough investigation Renault is calling shenanigans (the driver can always override the cruise control system) and suing the driver for libel. So, like, you?
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Malaysia has launched a war on street racing, targeting its hoon-happy citizens. [hoon: 1. lout: a lout or hooligan 2. speeding driver: somebody, especially a young man, who drives fast and recklessly.] Motor Authority reports that the Malay government has proposed a $1500 fine, five-year prison sentence and three-year license suspension for first time road racing offenders. The government threatens to send repeat offenders away for ten years, fine them over $3k and– just to make sure they learn their lesson and indulge S&M-oriented bureaucrats– smack them with a cane three times. The sentences cover all forms of road racing, but they're particularly aimed at Mat Rempits, the step-through scooter hooligans who tear-ass through the streets of the South-East Asian country. We've heard of tank slap before, but this is just ridiculous.
As a child I loved to play on swings. Leaning back and kicking my legs forward, I could propel myself into momentary weightlessness. Of course, every good swing ended with an acrobatic dismount. At the point of greatest forward momentum, I would let go of the chains and launch myself off the seat. For a brief moment I would be flying. Like an astronaut on NASA’s vomit comet, I would arc across the back yard. The sensation was thrilling. But I wasn’t a bird. Gravity’s hand never failed to pull me back to earth. And so it is with General Motors.
While rumors that GM's letting the UAW run it into the ground (accidentally on purpose) are pretty far-fetched, it's highly likely that GM knows its flaming-out (cash-wise), heading for C11 in a death spiral. So what's stopping them from using C11 to protect their current cash reserves (which they need for reorganization) other than, say, hubris and self-delusion? Chrysler. When Chrysler files ("how our employees spent their summer vacation"), GM and Ford will get a short term boost. Sales will come from former MOPAR devotees, rural areas without a large transplant presence and people who consider Chrysler's bankruptcy a "wake-up call" to start buying American. If GM files before Chrysler, ChryCo gets the dead cat bounce. Oh, and why not let Chrysler introduce Americans to the possibility of buying a car from a bankrupt carmaker? Look for a full editorial on the slings and arrows of a GM bankruptcy by the end of the week.
In what is likely the most depressing story you will read all day, scientists have determined that your car makes flowers smell less sweet. Green Car Congress has the details of a new University of Virginia study which concludes that air pollution diminishes the fragrance of flowers, making it harder for insects to pollinate them. The study, published in Atmospheric Journal, offers this explanation for documented declines in wild pollinators like bees. "The scent molecules produced by flowers in a less polluted environment, such as in the 1800s, could travel for roughly 1,000 to 1,200 meters; but in today's polluted environment downwind of major cites, they may travel only 200 to 300 meters," says co-author Jose D. Fuentes. "This makes it increasingly difficult for pollinators to locate the flowers." Researchers found that the scent compounds released by flowers to attract pollinators tend to be volatile and quickly bond with pollutants such as ozone, hydroxyl and nitrate radicals, which destroy or modify the aromas they produce. The symbiotic relationship between flowering plants and pollinators means that this breakdown can prevent reproductions for flowers and cause starvation for pollinators. Using computer models, researchers found that scent compounds likely traveled much farther in pre-industrial times than today, when pollution levels tend to be highest during the mid-summer pollination peak.
Here being China. We being GM. The speaker being GM CEO Rick Wagoner. And yet… Automotive News reports that The General is deploying Ye Olde "A Car for Every Purse and Purpose" strategy developed by Alfred P. Sloan– and then annihilated by every cash-grabbing, corner-cutting CEO since, sending the former world's largest automaker sliding towards bankruptcy. Never mind; it was implementation that killed the golden goose. "The China market also gives it a rare chance to try to repeat the business past with a happier ending for investors… GM introduced Chevy to China just three years ago after concluding its Buick brand was over-extended by a product line-up that had saddled it with everything from a minivan marketed as a kind of executive taxi to a cheaper hatchback. 'We could see Buick was being stretched,' [GM's head of Asian operations Nick] Reilly said." Uh, hello? Buick still sells the same product line-up in China as before. They've simply added Chevy (i.e. rebadged Daewoos). Oh, and Cadillac's in the People's Republic as well. What are the chances GM will show the same branding discipline in China that they've shown in the U.S.? And if it's good enough for China…
Suzuki and Toyota are radically increasing production in China, in an attempt to compensate for faltgering sales in more established markets. Thomson Financial News (via Forbes) reports that Suzuki plans to double production "as early as next year" at its Chonqing-based ChangAn factory. The plant currently churns out 100k Chinese-market Altos. But a recent $144m investment in a new 1.5-liter engine for the ubiquitous (in China) hatchback, and a forthcoming additional $100m + investment in assembly lines, will see production rise to 200k annual units. Toyota is likewise betting long on China; a new factory is under works now in Jilin. Set to open production "some time next decade," the factory will lift ToMoCo's China production to over 1m per year. This will make China the number two manufacturing location for Toyota after the United States, where it builds some 1.5m vehicles annually. This will knock Hyundai out its position of top car manufacturer in China, after the Koreans recently spent nearly $800m to increase output to 600k per year.
At the Geneva Auto Show, VW showed off its 70mpg diesel-hybrid Golf Concept. The German automaker promised that "the model wouldn't just stay a show car". According to the in-depth preview of the Golf VI in the March 27 issue of Auto, Motor und Sport (print edition only), the "forward-looking diesel-hybrid is already a thing of the past." The culprit (once again): it's too expensive. "Eventually" there will be a hybrid Golf, but it will be a gasser, using the 1.4 TSI engine. In the shorter term, VW will rely on further engine downsizing and an optional start-stop system to meet efficiency targets. The Golf VI, which hits European streets this fall, will never see the USA anyway (except in GTI form, perhaps). In a contrast to the platform-globalization programs of the most other big manufacturers, VW is developing lower-cost replacements for the Rabbit and Passat to be produced in their future US plant. The current Passat costs $4k more than the (Camcord) competition, according to VW. Look to a return of twist-beam rear axles.
I've just realized something: I know more about the black-clad, heavily disguised Ferrari mule than I do about GM's Lambda platform. Motor Authority is reporting a bunch of new, presumptive info about what the test-mule may or may not actually be. So I'm thinking we should just get every rumor on the table front and center. Right? Right. Rumor 1: It's the new Dino. Yes friends, Ferrari is reviving their budget brand and you're looking at it. Except they're not and therefore it's not. Rumor 2: It will slot in below the F430. Ah yes, a Dino in everything but name. And the name would be Ferrari and it would go head to head with the Porsche GT3s and Aston Martin V8s of the world. Plus, how can you beat the Ferrari badge? Looks like this rumor's false, too. Rumor 3: It's a new 2+2, similar in zeitgeist to the old Mondial, featuring a folding hard top, a 500+ hp direct injected 4.7-liter V8 and (of course) a dual-clutch gearbox. Ferrari will call it the California GT. We have no idea if Rumor 3 is more accurate than the others, but currently there exists less evidence to refute it. And just for fun, I'd like to float another one. Rumor 4: The black-clad mule is actually a revival of the Ferrari Breadvan. First of all, who wouldn't want to pay homage to what's possibly the greatest Ferrari of them all? Remember, the Breadvan was built by none other than Ferrari engineer Giotto Bizzarrini after he and the 250 GTO team were booted out by Enzo's wife during the famed Palace Revolt. Starting with a 250 GT SWB, Bizzarrini brought the Breadvan up to GTO specs (who better?) but then lightened it. The Breadvan was leading all Ferrari GTOs at the 1962 LeMans when it was forced out by mechanical failure. Second, just look at the shape. This mule is totally a shooting brake. Isn't it?
At $115.07 a barrel, oil prices appears to have hit an all-time high. But the Economist reports that a Deutsche Bank analyst says chill; that oil is still more affordable than it was in the 1980's. Michael Lewis adjusts oil prices for inflation, by which he proves that pegged to the producer-price index oil is at an all-time high. BUT when you adjust the price for gains in the consumer-price index, oil has to hit the $118/barrel mark to reach a new record. This revelation led Lewis to compare the price of oil to gains in Western consumer's incomes. He found that the annual income of a G7 citizen would have bought 318 barrels of oil in 1981. To match this price (relative to income), oil would have to increase to $134/barrel. What's more, in 1980 American consumers spent some eight percent of their disposable income on energy, compared to 6.6 percent today; a difference that would require oil to climb to $145 to match. By measuring global oil consumption, Lewis also finds that worldwide spending also peaked in 1980 at 5.9 percent, compared to 3.6 percent today. To reach that percentage of global expenditure, oil would have to jump to $150/barrel. In short, gas prices have risen, but global gains in prosperity mean that oil is actually cheaper today than it was at the end of the Carter Administration. Whew!
"Automakers wage war for market share," reads the headline over at China Daily. The current battlefront of that war can be viewed at the 2008 Beijing International Automotive Exhibition, which runs through April 28th. With 890 vehicles on display in the 1.9m square foot arena, the nine-day event is expected to attract more than 600k visitors. The spoils of war can be lucrative, too, with Chinese vehicle sales up 21.4 percent year-over-year, which translates to 2.58m cars sold in the first quarter. Total sales are predicted to surpass the 8.79m units sold in '07 and reach 10m vehicles in 2008. While the suspected recession in the U.S. has tempered car sales here, the prospects in China offer a respite: Ford's Chinese sales have "rocketed" by 47 percent in the first quarter. GM's Rick Wagoner figures China will account for more than 40 percent of global auto sales growth in the coming decade. Meanwhile, Mercedes-Benz launched its C-Class sedans in China last month and Ulrich Walker, the chairman and CEO of Daimler Northeast Asia Ltd., is amazed at China's transformation. In a single generation, a population simply striving to own a "Flying Pigeon" bicycle now strives to own a "big Benz." "In the history of the world, no country has changed as much as China in the past 30 years," says MB's Walker.
Our spies tell us that the 911 is finally slated to receive the killer app: a sublime dual-sequential gearbox (DSG) or similar (don't ask). The paddle-shifted Porsche should hit dealer showrooms by the end of the summer. [The delay's due to horsepower and installation issues.] From there, the world's best paddle shifter will trickle down into its rightful place on planet Earth: the Boxster/Cayman. And upwards onto the Cayenne (the mind boggles). And over to the forthcoming Panamera (due in '09 as a '10). And all Audis. Meanwhile, the 911 gets all the e-toys it lacks: Bluetooth, touch screen (death to Chicklet buttons!) and iPod integration. It remains to be seen whether the refreshed 911 will get a displacement bump or find a few more hp through the usual Stuttgartian black magic. And whether the 911's stick-intensive clientele (60% plus) will abandon their purist predilictions for paddles. As anyone who's driven the DSG GTI will tell you, especially a TTAC writer who owns one and lets his designated girlfriend drive it after a couple of few bourbons, there's really only one good reason not to make the switch: most car thieves can't drive stick.
It looks like GM's labor pains are just starting. The Detroit News reports that strike threats are coming in from sites around the country. While The General is busy dealing with a strike at their Delta Township, MI plant, they also have to defuse threatened walkouts at plants in Parma, OH; Mansfield, OH; Grand Rapids, MI; Kansas City, KS; Flint MI and Arlington, TX. And that's on top of dealing with parts shortages caused by strikes at suppliers American Axle and Alliance Interiors. Even though UAW prez Ron Gettelfinger says he supports the strike actions, he seems to have forgotten the fact that the actions are a backlash caused by the contracts his minions acquiesced to negotiated last September (and strong-armed the members into ratifying). At the time we wondered how workers could agree to the contracts; it seems that they've "woken up" to the reality. Once the Locals settle their differences with GM, you have to wonder if they'll have the same issues with the Ford and Chrysler, and if they'll go after the UAW's leadership for putting them in this situation in the first place.
The DOT wants to raise CAFE standards even higher. To meet the new standards, automakers will have to downsize and lighten everything they offer. However, their expertise (and profit) is in large trucks/SUVs. Whatever will they do? Well, there's always China. The Associated Press reports China's nouveau riche auto buyers think size does count. They're going for gas guzzlers like large SUVs and luxobarges; they're the fastest-growing market segments in the People's Republic. And the automakers know it. The star of the GM display at the Beijing Auto Show is the Escalade, which they'll introduce to the Chinese market next year. Mercedes says China is the second-largest market for the S-class (the U.S. is the largest), R-class sales are up 110 percent in the first quarter and the M-, G- and GL-class sales are up 100 percent. Remind me again why we're raising our mileage standards to cut fuel consumption here? Oh yeah. We're giving up our gas guzzlers so the most polluted country in the world will have plenty government-subsidized fuel for theirs. Got it.
That's provided Senator Clinton gets elected president. No, no. Just kidding. (I think). According to the Detroit News, "The U.S. Transportation Department today will propose a sweeping increase in fuel economy standards, requiring passenger cars to average 35.7 miles per gallon and light trucks 28.6 mpg by 2015." That's average folks. So for every 14mpg non-hybrid Escalade (should such things exist) that GM sells (should such a thing exist), they'll have to sell a light truck that achieves 42.2mpg. Maybe. But first, the hype. "Transportation Secretary Mary Peters will unveil the proposed regulation at an Earth Day event in McLean, Va., at a Federal Highway Research facility. Peters will make the announcement against a backdrop of vehicles from the large automakers, including Detroit's Big Three. A source who saw her prepared remarks said Peters plans to call the proposal 'ambitious but achievable.'" So, a nice photo op and some props for a lame duck Prez, then. But here's the real deal: "The proposal also reforms the way fuel economy numbers are set for passenger cars. Instead of one overall number, the proposal sets a series of requirements based on the size, or attributes of the car. It's not clear how the attributes will be defined or how the system will differ from a similar reform of light truck fuel rules in 2006."

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