TTAC's dedicated a fair amount of bandwidth to the UK's anti-car jihad. Our coverage has included London's Congestion Charge, speed cameras, CO2-related taxes and more. And now, finally, we offer a link to a proper polemic that encapsulates the logic and emotion of the British chattering class' anti-car arguments. Novelist and Independent columnist Joan Smith — "known for her human rights activism and writing on subjects such as atheism and feminism"– claims petrol-profligate pistonheads are forcing Chancellor Gordon Brown to reconsider yet another increase in the UK's fuel duty. And she's not a happy camper. "Welcome to 21st-century realpolitik, where the fact that overconsumption of oil is destroying the planet matters less than a noisy group of wannabe Jeremy Clarksons… I'm not saying that people shouldn't own cars, especially in rural areas where public transport is inadequate. I am suggesting that our present level of car use is a luxury we can no longer afford, which is why I always give a quiet cheer when the cost of petrol and diesel rises. In residential areas two- and three-car families have become the norm, and I'm not talking about little runabouts like my Ford Ka; the same people who whinge about the price of petrol have often spent £40,000 or £50,000 on top-of-the range saloons and SUVs without stopping to think of the cost in road accidents and premature deaths from respiratory disease."
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Jay Leno, NBC comedian and car fanatic, would like to offer Motown's maven some independent analysis. So he does, via msnbc.com. "The type of vehicles America makes best are, unfortunately, not the type of vehicles that people really want anymore… Where we seem to lose it is in the low-bucks econocar… I believe that, all things being equal, Americans will buy American. It just has to be as good as the competition; it doesn’t have to be better… If you look at the new line of G.M. cars, they are almost as good as what the Europeans are doing… America does technology well, and I think this is how the companies will bring those buyers back. I think cars like the Chevy Volt, which is entirely battery-powered, or hydrogen cars from Chrysler, Ford and G.M. will take off…. One last thing: No matter what happens, do not expect all American cars to go Eurosize. American buttocks are not getting any smaller." So, aside from Jay's belief that close enough for rock and roll is close enough for rock and roll, and setting aside the issue of what constitutes an American car (Aveo? Accord?), and the fact that the Volt is actually a hybrid and a whole bunch of other stuff, the funnyman nails it. What do you reckon: Bob Lutz Award nominee?
Well, here's some counter-intuitive thinking to challenge TTAC's Best and Brightest and/or infuriate The New York Times' Editorial Board (sorry, Wilkinson, it's true): new highways are less environmentally damaging than new mass transit. "Each mile of urban highway typically provides far more passenger miles of travel than a mile of light-rail transit line. The average mile of U.S. light-rail line, for instance, [provides] only 15 per cent as many passenger miles as the average lane mile of urban freeway.” This startling conclusion comes to us from U.S. environmental economist Randal O'Toole [via Canada's Globe and Mail]. Needless to say, O'Toole's crunched the numbers: "A 1-per-cent increase in new-model cars on the road produces more benefits – in energy efficiency and in greenhouse gas reductions – than any light-rail system can produce." He also points out that mass transit systems are a 40 to 50 year investment that can't take advantage of ongoing technological improvements like… cars. That said, O'Toole favors a range of government interventions to keep things moving: tolls, toll lanes on expressways, peak-hour tolls and the "smartest traffic-light technology that money can buy."
Another Friday, another bombshell from The General. Yes, once again, GM waits until the markets head-off for the Hamptons before revealing some bad news. Last time, out it was Rick Wagoner's $14.4m annual pay packet– which was good news for Mr. Wagoner and his heirs, bad news for management accountability. This time it's GM's SEC filing re: the cost of the American Axle strike. And there it is: $2.82b. Automotive News [sub] breaks it down this way: "GM estimated that it suffered a $1.8 billion impact in the second quarter alone. That's on top of $800 million from lost production during the first quarter and another $215 million in assistance GM offered to American Axle to finance employee buy-downs and buyouts." Two-hundred-and-fifteen? Hey, what's $15m between friends? Anyway, the total damage makes the cost of the United Auto Workers (UAW) strikes at two GM plants seem like a bargain, at just $200m. Yesterday, we totally missed that Standard & Poor's upped GM to a "B" rating, five levels below investment grade. Reuters reported "The outlook on GM remains negative, meaning a rating cut is still possible. The risk of a downgrade would increase if GM's lower-than-expected U.S. light-vehicle sales through 2009 result in pushing the company's liquidity toward 'undesirable levels,.'" And the next day, a Friday, GM reveals the hit. Huh.
The Detroit Free Press reports that a little-known loophole in California's greenhouse gas emissions standards will allow some foreign manufacturers to avoid meeting the tough standards. Under the 2004 rules set by the California Air Resources Board (CARB), automakers averaging fewer than 60k annual unit sales in the Golden State would be exempt from the 2016 emissions standards. The Big 2.8 and Toyondissan would have to meet the 35mpg by 2016 standards; Volkswagen, Hyundai and (possibly) BMW would not. The loophole was revealed in discussion of a Senate bill designed to overturn the EPA's decision not to allow California to set its own emissions standards. GM spokesmouth Mark Kammer was unimpressed. "There's a lot of cherry-picking opportunities for a [foreign] manufacturer." The United Auto Workers' Legislative Director Alan Reuther also spoke on behalf of the his members' employers and… the planet. The loophole "undercuts the effort to reduce CO2 emissions and improve fuel economy. And it gives a major competitive advance to newer entrants into the auto market." CARB rules indicate that the exemption sales limit could drop to 4k units per year after 2016, but the proviso is not legally binding. At least not yet.
Automotive News (sub) has a headline that the industry will likely latch onto as it continues its PR campaign to beg for federal funds to offset coming increases in CAFE requirements. And there's little denying the Global Insight research that says that CAFE compliance will cost American automakers considerably more than their Japanese counterparts. The Detroit three can expect to pay some $30b bringing its fleet up to the 31mpg average mandated by 2015, while Japan's big three will pay only about $14.85b to meet the standards. That's less than GM alone is expected to pay, according to Global Insight. The "fast start" 2015 goal is blamed for much of the expense, as it allows little flexibility for product planning, mandating a short-term 25 percent jump in efficiency, to be followed by a total 40 percent improvement by 2020. But wait, that still doesn't explain why Japan's companies can expect to pay so much less for CAFE compliance than Detroit. Is currency manipulation saving the Nipponese bottom line? Secret manufacturing techniques? Did someone hire Godzilla's lobbying firm? Actually, the reason comes in the form of a single-sentence paragraph. "Japanese automakers won't be hit as hard because their fleets already are more fuel efficient." How is that fair?
Go to Butler, Missouri and you'll find Max Motors, an independent car dealer that specializes in (i.e. only sells) American cars. Yup, under one roof you can buy a Buick, Cadillac, Chevy, Chrysler, Dodge, Ford, Jeep or Pontiac. Your guess is as good as mine if they sell Korean-made Aveos, Mexican made Fusions or Canadian made all sorts of stuff. Oh wait, I checked, they do. But that's not why we're telling you about Max Motors. No, we're telling you because through May 31st if you buy a new car from Max Motors you get your choice of free gas card or handgun. That's right, Max Motors is aware of both "the gasoline and crime problem [sic] in America." And while to some throwing gas at a gas problem and guns at a crime problem is like throwing fire at a fire problem or fat at a fat problem, Max Motors sees it different. Explains sales manager Walter Moore, around Butler people believe in "God, guts and guns," though they aren't handing out free Bibles or chitlin's. As you would (probably) expect, 80 percent of the customers are opting for the gun. And hey, why not? I just traded my Colt Python .357 Magnum for $250 worth of scotch and bourbon. The only drawback we see is that you don't get the gun immediately (you have to pass a background check). Max Motors might be inadvertently setting up the world's most ironic carjacking.
In an interview with Auto Motor und Sport, Alfa-Romeo boss Luca De Meo revealed plans to relaunch as a global brand, an effort which involves offering a new SUV in 2010 and eventually, hybrid options. With potential customers in China, Japan, Australia and the U.S.A. in mind, de Meo wants to increase volume with the Mi.To, earn respect with the 8C Competizione, go green with stop-start technology, and pander to American tastes with an SUV. The SUV, currently in development under the name CX-over, will be "compact" says de Meo, with a production goal of 40k units per year and a price of about $40k. De Meo seems unfazed by the dismal American market (particularly for SUVs), which Alfa will likely enter in 2010, saying he is "convinced that no brand can afford to not be represented there." De Meo admits that decisions about a dealer network haven't been made yet, and that the firm still needs a large sedan, an automatic transmission and a six-cylinder engine to achieve its strategic goals. Interestingly, Alfa will forgo a major marketing campaign. "Alfa Romeo is not a brand that requires huge marketing budgets," says de Meo, "the brand is known worldwide." Yeah, for frequent breakdowns, insufficient dealer networks and head-spinning depreciation. Saying Alfa will never be an "Eco-brand," de Meo nonetheless sees stop-start technology as an unobtrusive way to improve efficiency, and will offer it in 2009 or 2010. Hybrid options are much further off, and will come from Fiat's developments of the technology.
As auto hacks we spill a lot of ink crying and moaning about a car's interior. And unlike handling, there's not much to debate. Every other journalist I've ever spoken with agrees that Chrysler's interiors are in fact below the bargain basement. While you will find differences of opinions about the layout of a given cabin (I've been catching a lot of heat from my A5 review), crap remains crap while good stays good. Speaking of other journalists, I was sitting around drinking free booze with the usual suspects at a Ford event (soon, soon) and the age-old 911 vs. Corvette debate reared its head. As a natural contrarian I took up the Chevy cause. I explained how getting a hot lap on a runway in a Z06 piloted by King of the 'Ring John Heinricy was the most violent, exhilarating experience of my life. Their rebuttal? The interior sucks. All I could think to yell was, "Who cares?" But the truth is, I do care. A little. I think. Well, maybe just sometimes. Or not. Er, you?
Automotive News (sub) reports that Toyota is investing $673m in new Japanese battery facilities, with the goal of building one million batteries per year by 2011. A new nickel-metal hydride plant is planned for northern Japan, and a new lithium-ion plant will be built southwest of Tokyo. They're also adding to an existing metal-hydride facility as Toyota expands operations to meet the million hybrid vehicles per year demand it expects in the next decade. Toyota's batteries are built by Panasonic EV Energy Co, a joint venture between Panasonic and Toyota. Details are not currently available for the two new plants, but once expanded, the existing metal-hydride plant will build 300k batteries per year. Reports indicate that lithium-ion production will not exceed the tens of thousands, indicating that Toyota will continue to rely on its proven metal-hydride technology for most hybrid applications. With Nissan jumping into lithium-ion production, and Honda announcing an increased hybrid lineup, Toyota's investment is a necessary step in building on its enviable lead in hybrid production. With about 430k hybrids sold last year, and sales of the gas-electric whips rising at a steady clip, Toyota should have few problems selling a million hybrids annually within the next five years.
Just because you (and by "you" I mean us lucky auto journo types) won't be able to see the new prancing horse GT California until October at the Paris Auto Show, doesn't mean a fetish photographer can't. Employing the strange, up-the-skirt "teaser" tactics that Lutz and friends deployed with the new CTS, Ferrari has even produced a come-hither video complete with a Skinemax after hours soundtrack. But I'm not here to criticize Ferrari's advertising tactics. Oh wait, I am here to criticize Ferrari's advertising tactics. Still, it's Friday, the birds are chirping and this guy I know just picked-up a new M3. Point being: Ferrari's not talking to you anyhow. But just so we're clear, the GT California is only available as a hard top convertible and will be powered by a new-ish version of the 4.3-liter V8 that's already shared with nearly ever hot two-door in Italy (F430, Maser GranTurismo, Alfa 8C Competizione). I say new-ish because the relatively small eight-banger has a flat-crank and direct-injection, both of which combine to kick out 460 horses at a lofty 7,500 rpm and bring up 60 mph in four seconds flat, according to Motor Authority. The brakes are ceramic and the F1-style traction control system is the same as the 599. The big tech news: a seven-speed dual-clutch transmission, which of course sends power to the rear wheels, as God intended.
Autobild [print edition] reports that Ford of Europe is planning an upmarket four-door coupe. Ford's "CD" platform– upon which the Mondeo is based– is both highly flexible and expensive. So FoMoCo's using it for two generations of Mondeo (spanning 15 years) and spread it over numerous model variants. The new generation of Mondeo family members will be introduced in 2012 (what… not in 2010?), including the S-Max minivan, a station wagon, possibly a two-door convertible-coupe and an expanded seven- seater version of the successful Kuga CUV. The coupe version is a showcase for a new design motif featuring a segmented grille, new-shape headlights and geometric air intakes. (It looks ungainly on paper, but one can assume that Ford– or at least Andrei Avarvarii– will get it right.) The move upmarket will have technical elements as well: steering-based tracking control, radar-supported cruise control, automatic parking, micro-hybrid trickery and (relatively) clean Urea-supported AdBlu Diesel machines. Ford, we hardly know ye… Only one question: is there a market for yet another four-door pseudo-coupe, following the Mercedes CLS and the Passat CC?
As well it might, what with the price of gas at the $4 a gallon mark (apologies to our foreign readers for our pump shock). A quick digression… I love salesmen. Yes, they invented the word oleaginous. Yes, they are, in the main, morally compromised individuals. But there are very few other members of our society who're paid to be optimistic– especially in the face of disaster. That scene in Planes, Trains and Automobiles, where loser salesman Del Griffith sells plastic curtain rings to passengers at the bus terminal, is a perfect illustration how a salesmen can go from zero to hero in a heartbeat. Now, when I got a press release "RV Rental Firm Takes the 'Bummer' Out of Summer with Gas Rebate Promotion," I sensed the hand of a master. So I called Rob Tischler, President of Allstar Coaches, and stuck it to him. The resulting interview explains why Death of a Salesman is a comedy in Russia. If you know what I mean. [apologies for the audio quality]
It seems GM has a new seven-seater van under development, based on the global Delta platform. It'll have to be pretty generic to meet the expectations of the global market while representing the values and design philosophy of at least three different brands. Expect the new car to be badged a Chevrolet, Opel/Vauxhall and Euro-Chevy (GM-Daewoo) but don't expect to see it in the U.S. This "born to be badge engineered" design doesn't leave that much room for a seductive personality or a strong character. But as long as humans are still organized in families and have pets and stuff to carry around, there's still a significant market for the MPVs (i.e. minivans). My rendering represents the Chevrolet version, tailored after carparazzi photographs taken so far. Sliding doors in the rear and a classic monospace body are no surprises. I wish I could render a gorgeous car, but we are seeking the truth here and this time it ain't that pretty at all.
The fastest way to kill an automotive brand: sell a POS. The bloodletting caused by a brand new clunker can be spectacular. Anyone remember the 1981 Cadillac Fleetwood V-8-6-4? How about the Cimarron? It has taken Caddy more than 20 years to climb back from that double debacle if, indeed, they have. But there’s another, slower and more insidious way to ruin a storied car brand: distraction. When a carmaker builds a vehicle that muddies the marque’s core message, it mortgages its future. To wit, the Lexus LF-A.
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