May was a disaster for American new car sales. Practically every player in the U.S. market ended-up the month trailing last May's totals, many by a significant margin. Perhaps the most damning indicator of the industry's general direction: the F-150's sudden and precipitous drop from the top sales spot. Ford's full-size pickup wasn't just edged out; it was defenestrated by four different cars. The Civic, Camry, Accord and Corolla all mounted the Mother of All Palace Coups. With gas prices singing "the only way it up," clearly, May is only the start of a long, hot, bloody summer.
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When it comes to family-hauling vehicular solutions, we're at the end of the tunnel. In the face of $5 a gallon gas, SUV and minivan sales have vaporized. The mushroom cloud of market crash is overhead. One need only look at the discrepancy between SUV/CUV and small car sales to realize we're in the dystopic, post-apocalyptic era– as far as Detroit's concerned. While Ford rushes its Fiesta compact into production (hola!) and focuses on its existing passenger cars, they've come up with the Flex, a big ass people mover. Seven seats and xB style. How great is that?
I'm very familiar with, and very grateful for, the Hertz "Premium Car Collection" available at most tourist destination cities. Many times I have been sent to Las Vegas for an Air Force exercise– only to have been stuck with a Cobalt, PT Cruiser, or something else that sucked the very soul out of my body. Then I discovered the Premium Cars from Hertz. Subaru Outbacks, Volvo XC90s and XC70s, Audi Q7s, and A4s. I will take my German luxury off-roader in brown please. Yes, I want the full coverage insurance. Now, much to my chagrin, Hertz offers a Chevrolet Corvette ZHZ, a Shelby GT-H rent-a-racer version of the Vette (with a 6hp bump thanks to a new exhaust system) for Chevy fans. We're talking 436bhp, yellow paint, $250 a day. So now you too can go to Las Vegas, surrender your credit card, and drive like an absolute hooligan in an overpowered car that you don't own (and hopefully bought the daily insurance coverage for) down the strip. Since RF and I both agree that the Corvette is a death car (a car that when driven hard intends to kill you), how many crashed ZHZs we will see before Hertz auctions them off at twice the price of a normal Corvette?
We've finally removed the broken page view counter. The numbers we've been displaying for the last week or so have been completely misleading. We've been getting hundreds of page views where you've been seeing dozens, and thousands where you've seen hundreds. In sum, we're still bumping along at 580k uniques and 1.8m page views per month. Of course, I'd like to grow the site beyond this glass ceiling, but not crashing has been our number one priority. Not that I'm fucking complaining. Every single day, TTAC gets new registrations. Not many, but some. Every one is precious: a testimony to the fact that we're doing something right. Regardless of the numbers, our job to keep the Best and Brightest well supplied with new material, regardless of technical setbacks or disappearing features. (We're still working on restoring TrueDelta pricing and specifications, and we know the comment edit button's screwed for some of you.) At the end of the proverbial day, it's time for a nice bottle of Coppola's finest chardonnay. And while I'm drinking [some of] it, I know that I'm privileged to chronicle these amazing times in the automotive industry. And get paid for it, no less. I will do whatever I can to get this house in order. Meanwhile, thanks to our crack (as in expert) technical team and to you, for your patience.
KFOR news in Oklahoma had a crawl at the bottom of the screen saying, "Fight at gas stations caused by limited quantities of cheap gas." Apparently, a gas station in a not-that-great neighborhood in the city of the Okies was selling regular gas at $3.61 a gallon (with a ten-gallon maximum). Gas-crazed motorists were fighting each other in the rush for cheap go-juice. I felt it my duty as an automotive journalist to investigate this outbreak of violence first hand. I ran to my Volvo in full BDU camouflage and combat boots, gunned the anemic five-cylinder engine, and streaked (safely) down the interstate to the scene of the "crime." I was sorely dissappointed to discover that instead of Mad Max-style mayhem over the last of the cheap gas, several homeless people had been arrested for a meth drug deal gone bad, maybe to get enough money to fill their aging (and impounded) Mercury Montego. So much for my Pulitzer Prize on Peak Oil pugilism. At least I could drive away from the faux news in Swedish comfort, with my Swedish Fish snacks (made in Canada).
Last time we checked in on the Oshawa closure debacle, a GM spokesperson was calling the CAW blockade "understandable." After nearly a week of being barred from Oshawa by angry CAW workers, GM has lost its sense of empathy. The General is asking for a court injunction to end the protest. The Detroit News also reports that although CAW understands why GM wants their 250-car blockade of Oshawa removed, The General's request for $1.5m in damages from the Union comes as a bit of a surprise. Neither side likes the other, and both feel betrayed, so why is GM trying to squeeze an extra million bucks or so out of the situation? GM has said the blockade caused it to lose some production. With cash burning and nothing to gain in Oshawa, well, why not get that back from the union? For CAW, this is just more insult on top of losing the Oshawa plant. In short, this is the desperate squabbling with the short-sighted over the few remaining scraps of a once-healthy relationship. Cheery stuff.
Please read before screaming. Earlier today our man Wilkinson posed a very good question. Can our (in many cases) ailing power grid cope with EVs? Now, I'm lucky. I live in Los Angeles where DWP supplies the juice. DWP's union (wisely) refused to go private when out-on-his-ass former Governor Gray Davis was using Enron to help privatize most of California's electrical production. Long story short, LA has power to spare and was one of the only counties unaffected by the rolling blackouts a few years back. So, I'm confident us Angelenos will be able to handle plug-ins, capacity-wise. But where the hell do we plug 'em in? I live in a classic LA hill home. It's four flights of stairs up me. Meaning street parking. Short of running 200 feet of extension cord down a hill and across a street, I can't charge an EV. Hundreds of my neighbors are in the same outlet-less boat. That's just in my 'hood. In other words, if I had an EV, I wouldn't know what to do with it. Would you?
ABC's decision to create a TV show based on the high drama of Detroit's auto tycoons is not particularly surprising. The backstabbing, corruption and alliances that you read about in these pages are often far more compelling than anything in the networks' lineups. But much like Detroit's interiors, Hollywood's high-concept pilots rarely hold up to more than a passing glance. The Prince Of Motor City is no exception. Rather than mining Detroit's rich, stranger-than-fiction heritage, the producers of TPOMC are erring on the side of hackery by simply transplanting the plot of Hamlet to the Motor City. Philosophy lecturer (yes, really) Billy Hamilton's father dies, leaving him in control of "Hamilton Motors," where he deals with uncle/mom entanglement, a ghost haunting the factory, a "spunky" girlfriend, and other eerie parallels to Disney's The Lion King. Ultimately, pilots rarely make it past that first episode– even if their scripts were written hundreds of years ago. ABC should ditch the Hamlet retread for some cheaper and far more entertaining Detroit-inspired reality television. Survivor: Detroit would sell itself, Extreme Makeover Chrysler Edition would tap into reality-show schadenfreude, and a show about Volt development could bring back the old Mission Impossible moniker. Then, there's always The Biggest Loser…
Aston Martin needs some major investment to develop its next generation of luxury sportscars. When Aston met cute with Daimler a few months back, there was talk of Aston becoming another feather in Dr Z's mustache. Since then, Aston's owners have denied seeking a sale. It appears they prefer to take the company public. The Motor Authority reports that has Aston chairman David Richards says the company's eying an IPO that "would be for the next level of investment to finance the next models and fund engine development work where clearly there'll be a requirement for further investment." Richards said the public offering will likely take place on London's stock exchange sometime in the next three-to-five years. This time frame suggests that Aston may need the capital to pay off the $40m the boutique automaker owes Ford; payment's due by the time their engine supply contract runs out in 2012. Meanwhile, Aston will flog the bejesus out of the British brand, following Porsche, Ferrari and Lamborghini down the primrose path of branded laptops, mobile phones, etc.
Breaking up is hard to do. It's even harder when you aren't even ready to move on. Automotive News [sub] reports that GM is "breaking up" with "Big Oil" in a series of new advertisements set to debut in June. "Dear Oil," begins the McCann-Erickson spot. "We've had this great relationship for many years. We think we will both be a lot happier and healthier if we see less of each other." GM's corporate marketing director Katherine Benoit says the ad "addresses the oil-price issue head-on, albeit with a tongue-in-cheek twist." By which she clearly means not at all. You see, GM has been attempting the hugely popular "green branding" approach for some time. The only problem being GM has basically nothing particularly green to market. GM has tried to conceal this discrepancy by touting its E85 FlexFuel vehicles. But with food prices up and ethanol enduring a much-deserved run of bad press, GM is back to square one. And so GM simply asserts it's "done with oil." Benoit thinks that someone will take the "break-up" seriously, saying "You have to make sure that the story you tell plays out." Sadly for this misguided marketing attempt, the GM-Oil relationship has less of a boyfriend-girlfriend dynamic than a junkie-heroin vibe. The [still] truck=heavy manufacturer doesn't need a break-up; it needs a 12-step program.
As GM’s FastLane and GMNext blogs have demonstrated, the U.S. automobile industry has fully embraced the concept of blogging– as press release. Toyota, of course, has entered the e-fray. Their Open Road blog may do little (as in nothing) to stretch the boundaries of Web 2.0-itude, but it offers the usual insight into the corporate culture from which it sprang. ToMoCo’s plugging the new Venza crossover, designed to fill the gaping hole in their lineup between the Camry, RAV4, Highlander, FJ Cruiser, 4Runner and Sienna. Into the depths we descend…
Your faithful correspondent was in the UK in September 2000, during a truckers' strike that literally crippled the country. It was a scary ass reminder of the U.S. fuel shortages during the 70s Arab Oil Embargo, complete with fist-fights and long lines of cars that had run out of gas waiting for gas. It looks like UK is headed for more of the same, as 641 tanker drivers who supply 10 percent of UK petrol stations are set to strike over wages at Friday at 6am. The Times reports that the truckers are engaged in "last-ditch" talks with their employers. Meanwhile, concerns are mounting (as they say) that other fuel-price-beleaguered groups (e.g. farmers) could join a blockade of refineries and other distribution points. In a move of epic imbecility, the UK government has advised the general public not to panic– an advisory that's already set off panic pewtrol buying. There's a big difference this time 'round: after 2000, the government created an emergency plan to deal with the threat, including a significant police/military response. Unless, the strike is averted, and maybe even if it isn't, it's clear there'll be tears before bedtime.
Mitsubishi has unveiled the Lancer Sportback, which is their fun language for "hatchback version of the Lancer." While it may not be the world's finest execution of a hatch in the history of cars, the Lancer is already a good looking vehicle and the added flexibility is most welcome. Mitsubishi's also announced the Ralliart version of the Lancer, which we've been waiting on since we realized that the regular Lancer is as much fun as eating glass. The Ralliart retains the 2.0-liter DOHC engine, but turbocharges its way to 236hp and 253 lb ft of torque. All that power is routed through a clever all wheel-drive system. While we can't yet confirm it for the US, the SST dual-clutch transmission IS go for European production. Considering the American love affair with automatic transmissions and Mitsu's desperate need to move metal here, the dual clutch gearbox's entry into the North America market seems highly likely. Sounds like the Evo's little brother will make for a great WRX competitor.
"Chrysler LLC reduced its number of U.S. dealerships by 196 in the past year and increased the percentage of outlets selling all of its brands, as the automaker tries to create a stronger sales network." That's one way to look at it. The alternative theory– that the "reduced" dealers simply went belly-up– doesn't get a look in from Bloomberg. Reading between the lines… "The pace of consolidation may be quickening as falling real estate values and declining auto sales convince more of the Auburn Hills, Michigan-based company's dealers to sell," ChryCo executive vice president of sales for North America Landry told Bloomies. It would be interesting to know to whom these dealers sold. Meanwhile, the ailing American automaker claims 3,488 outlets at the end of May, a decline of 5.3 percent from a year earlier. So what of Project Genesis, Chrysler's attempt to consolidate its dealers into tri-branded stores? The hard numbers are notable by their absence. But we do get anecdotal evidence of the plan's progress. "John Gunning, owner of Manassas Dodge in Manassas, Virginia, said many Chrysler dealers in his area can't afford the risk of borrowing money to buy another franchise and build a new dealership as auto sales decline." Hey! Maybe Chrysler could buy-out the dealers? Uh, maybe not.
Having just watched New York City barely make it through a four-day heat wave, and being aware that Con Ed is only by the skin of its teeth able to keep up with air-conditioner/escalator/elevator/refrigerator demands during the summer–and sometimes can't–you have to wonder what will happen when first 5k, then 50k and then who knows how many plug-in hybrids add their loads to this precarious system. I have yet to read any power-industry statement, "No problem, we're ramping up powerplant construction by 80 percent in anticipation of this demand." Instead, all I hear is emergency-this and backup-that, plans to borrow power from Canada and whines that NIMBYs won't allow the construction of nuclear plants. Everybody seems to assume that the world will recharge its hybrids at night "when demand is low." Fact is, that's exactly when a lot of blackouts have occurred: 95-degree day, everybody gets home at six when it's still sweltering and turns on the a/c, the TV, the stereo, the lights… Blackout. How much more likely is that to happen when thousands of hybrids also get plugged in at six? And what about all the hybrid owners who deplete their batteries simply getting to work and then, simultaneously, plugging them in at nine in the morning?
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