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By on May 22, 2008

1030532519_c614bfbe27_o-thumb.jpgThe New York Times reports that the failure of the Interstate 35W bridge in downtown Minneapolis had many fathers. A study by Gray Plant Mooty, a Minneapolis law firm hired by the state legislature, indicates that the collapse was caused by bad design, bad maintenance, bad inspections and bad enforcement. "In their 84-page report, the investigators laid out a pattern of missed opportunities and policy violations: inspection reports that failed to quantify the severity of corrosion, officials who later said they had not known that their duties included reviewing such inspections and a lack of special provisions for where heavy equipment should be placed for the construction work." Needless to say, the post-tragedy investigation has turned into partisan politics and finger-pointing. “It appears that some of what was happening was due to a lack of funding and communication problems,” said State Representative Bernie Lieder, a Democrat who is co-chairman of the committee that assigned the investigation. “You have to say that the governor bears some responsibility.” Seems to me there's plenty of blame to go around. The "accident" on August 1, 2007 killed thirteen people and injured 145 others.

By on May 22, 2008

jeep-kubel.jpgUnlike arm wrestling or Martini making, when it comes to currency, there’s an upside to being weak. Especially if you are, say, an American car manufacturer fighting pesky foreigners.  As the value of the dollar falls overseas, the price of American-made cars and trucks falls as well. Theoretically, a lower price should mean increased demand. So, is the declining U.S. dollar the cocktail Detroit needs to lift their spirits? 

Between 2002 and 2007, American auto exports doubled, from about $25b to $50b. Over the same period, imports grew to $150b (they’ve leveled off for the last 18 months). The bad news: exports from General Motors, Ford and Chrysler combined equals a third of the vehicles the US imports. What’s more, roughly half of The Big 2.8’s exports are sent to Mexico and Canada.

By on May 22, 2008

fiat_850_spider_1972.JPGThe internets are abuzz with Fiatitude. Motor Authority reports that CEO Sergio Marchionne fingers distribution, rather than manufacturing, as Fiat's greatest hurdle to selling cars in the U.S. True dat. Setting-up a factory in Mexico wouldn't be impossible. But setting-up dealers and warranty service departments (which Fiat will need to convince people their cars aren't the unreliable rust buckets of yore) will cost serious dough. Wth U.S. car sales on the wane, who wants to buy a franchise from a risky manufacturer? Marchionne says he's shopping for an American partner. You just know it's going to be Chrysler. Maserati TC redux? Meanwhile, Reuters reports that the Italians (who already own the Fiat, Lancia, Alfa Romeo, and Maserati names) are considering an additional brand to sell extremely low-cost vehicles in developing countries. Come again? The Fiat name has a lot of equity in the developing world (including Brazil, where the brand is popular). And besides, building cheap and cheerful cars is Fiat's forte. Anyway, my suggestion for a name for the automaker's low cost brand: Fiat.

By on May 22, 2008

kia-ceed-two-hatches.jpgKia, Hyundai's neglected smaller brother, plans  to double their non-Korean sales by 2010 (!) to 1.9 million. How? Good question (I'm glad I asked). The Cee'd– a Golf competitor with a daft, sexually ambiguous name– has received solid reviews in Europe. Stateside sales continue to be… adequate. Plans for a Kia pickup truck were recently, wisely, cancelled. Fortunately for Kia, their Georgia (the y'all state, not the Central Asian country) manufacturing facility comes on line soon, Kia can then expand beyond America's import cap and take advantage of our not-so-hot currency. In truth, Kia is a brand in search of identity. While the Koup concept was a nice try at sportiness, Hyundai is the company that gets to do smoke-filled donuts on stage at the NY Auto Show. And the Optima sedan is still underpowered compared to the Sonata. But hey, whatever. Considering the affordability and relative fuel efficiency of their American lineup, Kia's continued growth is a possibility. Probably. Maybe. Eventually. Later soon.

By on May 21, 2008

headlight.jpgIf you like to drive fast, you like to drive late at night. Yes, ultimate visibility is reduced, but there's nothing quite like caning a fast car down a deserted road in the dead of night. Distractions– both inside and outside the car– disappear. The entire world is right there in front of you, rushing towards you. The senses sharpen. If you're lucky enough to be driving a convertible, the night smells seem infinitely more distinct, more complex… I remember driving my TVR Chimera in the hills above Manchester (UK) at three am, running Hell for leather, savoring the pop and crackle of the ridiculously powerful re-jigged Buick-evolved V8. And then I saw a Mini up ahead. Not a MINI. A Mini. And no matter what I did to catch up, I didn't. I couldn't. I was humiliated but happy. A like-minded soul was enjoying the night air, doing what I loved doing. Who could begrudge him that? Any tales from the dark side you care to share? 

By on May 21, 2008

green-hell.jpgToday's editorial on the Nissan GT-R's Nürburgring record (second fastest-ever lap by a production car) raises some interesting questions about the veracity of that claim. On one hand, who cares? My first experience in a proper car on a proper track– riding shotgun in a tail-happy 911 with Jody Scheckter at Porsche's Weissach test track– taught me I could never do what professional drivers do to get a car around a track in as short a time as humanly possible. Nor, for that matter, did I want to. (Scary is just a word for nothing left to think.) Even if the GT-R can lap the 'Ring faster than a Porsche Carrera GT, I can't. Paint me respectfully unenthralled. On the other hand, what about the truth? Nissan knew full well that setting a 'Ring record would guarantee positive PR. If they cut corners or fudged the protocol to do the deed, they should be held accountable. In fact, Nissan should make a public statement on the issue, so that we may expose their weasel words, or murmur appreciatively over their mea culpa or issue an apology for besmirching their good name. The ball's in your court, Carlos. 

By on May 21, 2008

jun04_auto_pacifica_1.jpgIt turns out that Chrysler does have assets worth selling. Automotive News (sub) reports that Mercedes has agreed to purchase Chrysler's recently-shuttered Pacifica design center in Carlsbad, California. The 35k square foot building was listed at $7.3m, but with neither side commenting on the terms of the sale, one has to assume that Mercedes (once again) took advantage of its erstwhile partner. Mercedes already has a design studio some 51 miles away, in Irvine CA. At less than half the size of Pacifica, the Irvine design studio will likely merge into the newly acquired building, although Stuttgart is staying mum on the topic for now. Pacifica was responsible for some of Chrysler's most successful designs, from the 300 to the Challenger, from the Plymouth Prowler to the eponymous Pacifica. Of course they also designed the Dodge Intrepid and the Jeep Compass, so… maybe it's not a huge loss after all.

By on May 21, 2008

96metro.jpgWho woulda thunk it? Due to their high gas mileage, old Geo Metros are sought-after cars. Laugh if you want, but "Marci Solomon is hoping she'll be the one laughing- all the way to the bank -when her Geo Metro saves her from skyrocketing gas prices," according to CNN. Solomon has a 100-mile commute to work and her Honda Element was getting 28MPG, causing her to fill up twice a week at a cost of almost $100. So she began searching for an alternative and initially "toyed with the idea of purchasing a Prius," until she "rediscovered" old Geo Metros for sale on eBay. She focused on a 1996 two-door, three-cylinder, which opened with a $200 bid, and eventually "won it" with her winning bid of $7,300! Her ‘96 Metro's "average of 40 miles per gallon approaches that of a new Toyota Prius," and "bests most current cars by a long shot." Solomon says "I used to be a car snob, and I used to be too vain to drive anything that doesn't shine; but now it's about, ‘do I want to eat, or do I want to make it to work?' I want to do both." Even though she paid "more than five times the Blue Book value of the car," Solomon figures it's "an investment in the future." "It was all about saving money," she says. Indeed: Solomon has acquired another Metro, is "considering flipping [it] on eBay for profit," and "has her eye on a third at a local car lot." You go girl!

By on May 21, 2008

2009_fit_sport_119.jpgHonda has long played second fiddle to Toyota in the hybrid powertrain department, especially from a public relations standpoint, but also in terms of technology, sales volume, and fuel economy. At least they've redoubled their efforts: Automotive News [sub]  reports a push to increase sales tenfold to 500k per year with four different models: the current Civic Hybrid, an upcoming dedicated sub-$20k model, a sporty hybrid previewed last fall as the CR-Z, and now an upcoming Fit hybrid in a few years' time. Although that's only half the annual sales that Toyota is projecting early in the next decade, all will be affordable and fuel efficient, unlike the short-lived V6 Accord Hybrid.

By on May 21, 2008

lexus_lfa_det.jpgEdmunds' Inside Line quotes Lexus' corporate product planning manager as saying the price of the new Lexus' LS-F price will "begin with a 2." We're guessing the V10 supercar won't be $29,995. In honor of this news, I've hit up the thesaurus: brainsick, off, daft, absurd and whack. See also: dismal failure, stillborn. Newsflash to Lexus. You're not Ferrari. This won't be a performance halo car (reference Acura's NSX and the amazing effects it had on making people think the RL was sporty). Also, people buying summer Sunday cars for $200k aren't motivated by factors like "reliability," especially when this hand built carbon fiber monster will likely not maintain the brand's hallmark reputation for non-breakage and low maintenance. And, because I especially don't care for this LF-A supercar, here's a list of cars that cost half as much with better looks (extrapolating), heritage or fun: Porsche 911 Turbo ($135k), Nissan GT-R ($70k +  ?), Corvette Z06 ($77k), Corvette ZR1 (estimated $100k), Ford GT (slightly used, $150k), Ferrari F430 ($175k), Aston Martin DB9 ($175k), and BMW M6 ($100k).

By on May 21, 2008

vw-tdi-badge.jpg

Expectations for VW's 2009 "60mpg" TDI Jetta "Prius killer" ran high. And VW threw plenty of (diesel) fuel on the heated passions of oil burner fans. Press materials just a few weeks ago predicted EPA city mileage numbers "in the 40's" and highway mileage "as high as 60mpg." The EPA has released the numbers and they…suck. We're talking 29/40 for the DSG version; 30/40 for the stick. Combined mileage: 34 mpg. The Prius' 46mpg combined mileage is a whopping 35 percent higher. Diesel fuel is running 20 percent higher than unleaded. Annual fuel costs for the two (15k miles): Jetta TDI: $2010; Prius: $1,240. Don't say I didn't tell you so. But I'll repeat the key part: to comply with US emissions regs, diesels lose five percentage points off their efficiency advantage over gas engines. Throw in a global diesel fuel shortage, and its diesel RIP. No word yet on how much VW will charge for the TDI option. 

By on May 21, 2008

fcx-clarity2.jpgThink a Bugatti Veyron is pretty exclusive, what with its million dollar plus price tag? Maybe you think the new Rolls Drophead Coupe is a rare bird? In reality, all you need to roll down the street in one of these dream whips is money. Green Car Congress reports that only 200 drivers will "win" the right to lease a hydrogen fuel cell-powered FCX Clarity over the next three years. Oh wait, Honda's splitting the number between Japan and Southern California. So far, over 50k Californians have applied for a hydrogen-powered "it"-mobile. O.K., yes they'll need some money; $600 per month. The first cut will reduce the list to approximately 500 people who live near designated (if unbuilt) hydrogen fueling stations in Santa Monica, Torrance and Irvine. The chosen ones will receive an e-mail prompting them to take a customer selection survey. The Zero Emission [at least at the tailpipe] Powers That Be will chose the final 100 lessees based on driving patterns, vehicle needs, vehicle storage and– OK, again– financial criteria. Oh, that's after "an interview with Honda America." Yeesh. Maybe if they find out that you also own a Toyota, they'll vote you off "Clarity Island."

By on May 21, 2008

11_45_12-ballot-box_web.jpgAmerican Axle's unionized workforce are set to ratify their new "would you rather face the firing squad or be hanged?" contract. The Detroit Free Press reports that locals who've already voted have agreed to the terms of the four-year agreement. While the media has focused on salary cuts, the bitter is in the fine print. The contract changes the guidelines for computing overtime from "the regular working day is eight hours and the regular working week is forty hours" to "the regular working week is forty hours." (Translation: the company can lengthen individual shifts up to the new, 40-hour limit without paying overtime.) The accord removes five holidays over the course of the contract, and cuts the bonuses for those that remain. It lowers the limit on max vacation time accrued by the most senior workers, from 200 to 160 hours (those who already have between 160 and 200 hours can retain what they have, but not increase it).The contract reduced cost of living increases, which will now be made in lump-sum payments instead of hourly increases. The agreement cuts shift premiums drastically, to less than $1 per hour. So that's what 11 weeks on the picket line gets you these days.

[Click here for a PDF showing some of the changes from the old contract to the new.]

By on May 21, 2008

redneckhearse.jpgHow does a company with $1.3b in 2007 sales disappear by the second quarter of 2008? By trying to supply parts for the D3. The Detroit News reports that bankrupt parts supplier Plastech is extinct. The company will sell its manufacturing operations to Johnson Controls (JCI) and auction off the rest. Plastech will close plants in Ontario, Ohio, Indiana, Tennessee, Louisiana and Michigan, laying off some 1500 employees. Global Insight analyst Aaron Bragman says The Big 2.8 are "breathing a sigh of relief" at the decision: "they will be much happier to deal with JCI over Plastech." As to who will scarf-up Plastech's assets, Bragman expects a "Chinese or Russian buyer." "The root cause of these problems," says IRN's Merkle, "is that [the Big 2.8] will take a company out of business to squeeze 3 or 4 percent out of the price rather than looking at long-term interests." Look for more short term thinking as Chrysler works to slice 25 percent out of its supplier costs.

By on May 21, 2008

I agree with TTAC reviewer Stephan Wilkinson : the new Nissan GT-R is the old Honda NSX. Once people actually start driving Nissan’s “everyday supercar”– as opposed to simply jumping on the hype bandwagon and bench racing numbers supplied by Nissan– they’ll appreciate the parallel. Although I'm still looking forward to my first hands-on experience with the GT-R, the reality of the car’s true nature and importance in automotive history is right under the fan-boys’ noses.

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