Motown's been mauled. Despite it's 72-hour sale, GM's June sales dropped 18.5 percent. Despite its reasonably competitive small cars, Ford sales sank 28 percent. Despite uh, not being bankrupt, Chrysler sales tumbled 36 percent. The morning after Black Hole Tuesday, The Detroit News has dropped columnist Daniel Howes' party line– "Big Three in better shape to survive"– in favor of something more closely resembling reality. Former cheerleaders Christine Tierney, Bryce G. Hoffman, Brian J. O'Connor and Eric Morath have put their collective heads together to pen a partial paean to pessimism: "Slumping sales cloud Big 3's prospects." Yes, "This was supposed to be the year Detroit's automakers started to turn things around… But the industry's 18.3 percent sales decline in June, with steep drops for the Big Three, capped six months of bad news. With little prospect for relief in sight, the future of Detroit's automakers has never been murkier." Murky? C'mon, you can do better (worse?) that that! "Bankruptcy rumors are swirling around Chrysler and GM, while billionaire investor Kirk Kerkorian continues to amass shares of Ford stock. There is talk of reopening the UAW contract, of using profitable overseas operations as collateral for further loans, and of looking to foreign sovereign wealth funds for cash." Strangely, the article makes only a passing mention of new products (and nothing of the Volt, for once); the D2.8 are "rushing the introduction of new, more fuel-efficient models." Well, they did use the "b" word.
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You'd figure that Mercedes would promote their new California-compliant BlueTec diesel-powered vehicles based on their fuel efficiency. Times two, considering that opting for the oil-burning engine requires a $1k premium. And the fact that diesel is roughly 25 percent more expensive than gas. We knew there was an "issue" when WardsAuto's strapline revealed that "The ability of the diesel cross/utility vehicles to achieve a cruising range of up to 600 miles is a significant selling point, the auto maker says." To which we say uh-oh. Still, you'd think that Ward's would crunch the numbers. Nope. "Cleaning the exhaust doesn’t bite into fuel economy because the diesel generates 20%-33% better mileage than a comparable gasoline engine. The 6-cyl. Bluetec provides 4-cyl. fuel economy and V-8 power and torque, the auto maker claims." In the interests of veracity and transparency, Frank did the math for you below. Oh, and the BlueTec's NOx-scrubbing urea supply lasts just 10k miles. If the tank gets too low, you get 20 starts to refill. After that, the car won’t start. Where do I sign?
[First mpg = EPA combined mileage; second mpg = BT mpg rounded to the nearest whole number]
G-class – GL450 4matic (4.6L V8), 15mpg > 18 – 20mpg; GL550 4matic (5.5L V8), 14mpg > 17 – 19mpg M-Class – ML350 4matic (3.5L V6), 17mpg > 20 – 23mpg; ML550 4matic (5.5L V8), 15mpg > 18 – 20mpg R-Class – R350 4matic (3.5L V6), 16mpg > 19 – 21mpg
I've driven a lot of new Mustangs. Specifically, the V6 Convertible, GT, GT Convertible, GT California Special, Hertz GT-H, Shelby GT and the Shelby GT500 (coupe and convertible). The only ones I've missed are the V6 hard top (I'll pass) and the Shelby GT500KR. After last week, I can check the 2008 Bullitt Mustang off my pony car to-do list. Limited to "just" 7700 examples, the Bullitt follows the path laid down by its cinematic inspiration: green paint, black wheels, limited badging and more power. As a veteran ‘Stang wrangler, let me tell you how the latest iteration stacks up against the other stallions…
Hey, why not create a national network of electric vehicle [EV] re-charge stations? OK, this video kinda exaggerates the all-important re-charge time. And if those mats recharge your EV in ten seconds, why do you need a car wash-style battery swap stations? These are not churlish questions (which is why we continue to ask Tesla about their Roadster's range and recharge times). They speak to the commercial viability of the entire project. Anyway, go for it Shai! What's that? You want MY tax dollars to pay for all this? AutoblogGreen tells the tale. "Speaking to the House of Representatives Select Committee on Energy Independence and Global Warming (we have one of those?), Agassi said, 'For the price of two months worth of oil, some $100 billion, we can put in place the infrastructure needed to power the nation's cars and end this oil dependence.' Ambitious, no? He then threw in the 'American jobs' angle with, 'Of that $100 billion, moreover, some $80 billion will go into jobs that, by their nature, can only be performed in the US – the construction of the infrastructure itself.'" Other than remarking on Agassi's chutzpah. AutoblogGreen lets the wisdom of federal tit-sucking go unchallenged. We call boondoggle. If it's such a good idea, let the electric companies pay for it.
Nissan's numbers are finally available, and they're not looking hot, either. Unadjusted ('cause that's how we roll) June sales are down 17.7 percent overall, with trucks taking a 37.9 percent hit. Bright spots included the new Rogue CUV and a slight bump in Versa sales. Most cars held their own, with single digit percentage sales drops. Exceptions: the outgoing Maxima (uh, okay) and the incoming Murano (uh-oh, down 24 percent). Truck and minivan sales drops were impressive and as bad or worse than the other top six. Frontier led the way (-58.1 percent), followed by Quest (-62.3 percent), Armada (-63.4 percent), Xterra (-68.3 percent), Titan (-71.4 percent), and Pathfinder (-71.7 percent trailing. [Pause for picking your jaw up off the floor.] As bad as these numbers appear, the horrifying percentages were offset by Nissan's relatively small sales volumes; their truck line sold just 19K units last month. Still, Nissan has some production shifting to do, just like everyone else.
Autoblog: "You're going to be reading in the mainstream press about how horrible sales were in the U.S. during June, 2008. Yes, they were bad for many automakers, but consider that there were only 24 selling days last month versus 27 days in June, 2008. This makes comparing raw sales numbers misleading, since there were three fewer days to sell. Thus, as always, all the percentages below represent the change in Daily Sales Rate, i.e. the average number of vehicles sold per day, not the change in raw number of vehicles sold." TTAC joins Automotive News in rejecting this metric. We go by cars sold per month. Period. That said, TTAC got caught-out when Automotive News started with adjusted numbers, then revised to non-adjusted numbers. But no matter how you crunch these stats, they ARE horrible. "Not That Bad Edition"? The idea that any credible news organization would say otherwise is almost as astounding as the chaos afflicting the U.S. new vehicle market. How about this: there are industry players in Detroit who ascribe to Autoblog's Pollyanna philosophy. And while you're thinking about that (or something), Justin and I perform our usual reality check.
Today marks Canada's 141st anniversary. CTV reports that British Columbia's motorists can now look forward to higher motoring costs. That's right, Premier Gordon Campbell's "carbon plan" goes into effect today, costing motorists an extra $0.024/L per fuel in carbon tax. According to Campbell, the plan is "revenue neutral;" any extra revenue will be offset by income tax cuts. The aim, of course, is to tax consumption rather than income, thereby providing an incentive to reduce fuel consumption. Obviously, some of the highest gas prices in the ten provinces (as B.C. has) were not enough. Despite assurance from Campbell, many British Columbians are weary. How can its provisions be enforced without earmarking funds and major transparency?
Spaghettification as named by Stephen Hawking is the extreme stretching of objects into its components by a extreme gravity field, to the point of becoming but a thin strand of elementary particles. As forecast by Chrysler plant cutback and closing yesterday, the maker most dependent on minivan and truck sales is definitely getting the stretch this June, with sales down 36 percent (unadjusted). Surprisingly, car sales dropped even further, down a whopping 49 percent. Grand Caravan sales are a bit of bright spot: up 52 percent. But GC sales are still down 27 percent year-to-date, warranting the closure of the St. Louis plant.. Not surprisingly, the outgoing Ram is down 48 percent, The Caliber and Compass took hits of 44 percent and 39 percent respectively, the complete opposite of just about every other manufacturer's small car lineup. The press release contained paragraphs of spin, announcing that the $2.99/gallon fuel promotion will continue through the end of the month. Frankly, there's no escaping this gravitational sinkhole.
Click here for Chrysler's Press Release, which uses sales adjusted numbers.
Oil prices have just hit record highs. Talk of recession is in the air. Ford's line-up of bloated, heavy vehicles is piling-up like cord-wood on the dealer's lots. The only car selling: its "Americanized" global compact. Ford stock is in the toilet and bankruptcy rumors are swirling. The top exec hired a year earlier is intelligent, unassuming and straight-talking. He commits Ford to building "higher quality products with stronger customer appeal… emphasizing smaller, more efficient cars." Ford in 2008? No, it's 1981.
Today, as you know, is July 1st. To celebrate, California and Washington State have passed laws mandating handsfree devices; stick a phone to your ear and get a fine. Not just a fine of course. You have to (at least in CA) pay a gas surcharge fee, as well. These laws won't do a damn thing to increase safety; the supposed reason why they were passed. Here's my thinking… When you want to call someone, you still have to dial. Sure, lots of phones have voice recognition. With my supposed "smart phone" I say, "Call mom mobile" and get back, "Calling Tom Vogel." But here's the real cincher. This morning, for the first time, I used a handsfree device. I loved it. Normally when I'm driving I try to get off the phone as quickly as possible. I need a hand to shift gears and my arm gets tired. But with the ear dongle, I talked for half an hour– way longer than I normally would if I were holding a phone to my ear. So, does my State feel that the physical act of holding my hand to my ear is the danger? Because methinks these new laws will have more people driving and talking longer. Your thoughts?
GM is reporting sales drops for June; just how bad it is depends on what numbers you use. Their press release talks about deliveries, retail sales, sales, adjusted numbers, and unadjusted numbers. Like Automotive News , we prefer using numbers that aren't adjusted for "sales days," so GM's sales for June were down 18.5 percent from the previous year. For the first half of the year, they were down 16.5 percent from 2007. If you can believe it, car sales were down e ver more than light trucks (21.1 percent vs. 16 percent, unadjusted). Individual car models had increases, some large, that were more than balanced out by other car models having decreases.So, what about the Hail Mary 72-Hour-No-Make-That-10-Day 0 Percent Financing sale? "The 72 Hour Sale at the end of June was targeted at the 2008 vehicles left in inventory. Combined full-size pickup and utility inventory is down about 124,000 vehicles compared with June a year ago. The sale helped rebalance inventory to a stronger car mix. There were about 238,000 cars and 550,000 trucks in inventory at the end of June." Given the rate trucks are selling, a two-to-one ratio of trucks to cars still doesn't sound that promising. July's sales numbers will tell that story.
As expected, Honda dodged the gravitational pull of Black Hole Tuesday. Automotive News [sub] reports Honda's sales rose 1.1 percent [unadjusted] in June, up 4.1% year-to-date. Needless to say (but what the Hell), every single Honda and Acura SUV, truck and van suffered a sales shock. Yup, even the big H couldn't scratch out a sales improvement; sales of the new big-nosed Pilot were down 21 percent for the month. Once again, the Honda Civic and [Edmunds' AutoObserver's "future flop"] Accord narrowly beat Ford's F-series for the "most likely to get bought" sobriquet. Both Honda cars racked-up almost 40k sales apiece. Fit sales are up 100 percent– despite the model being on its last legs. It's a great time to be a maker of four-cylinder cars. It's an even better time not to be reliant on trucks and SUVs to make your nut.
To paraphrase John F. Kennedy (who probably stole the expression from someone else), a falling tide lowers all boats. Or, if you prefer, it looks like Toyota got keelhauled along with the rest of 'em this month. Automotive News [sub] also does nautical metaphorication, reporting that "Toyota Motor Corp. ran aground in June, with U.S. sales down 21.4 percent (unadjusted), the biggest drop of the year for the world's No. 2 automaker. For the first half, Toyota said it sold 1,240,086 vehicles, down 6.8 percent from the first half of 2007." ToMoCo doesn't break out their Scion sub-brand's sales, but Lexus is proving to be a luxury canary in a gold mine- or if we're unmixing metaphors, a bit of a boat anchor. Lexus' Junes sales slumped 21.1 percent vs. June '07. Truck sales? We're talking post-iceberg Titanic; down 31.1 percent. What's worse, Toyota can't build Prius-shaped lifeboats fast enough. "Sales of the Prius hybrid were down 25 percent during the month as Toyota struggled with supply problems. Dealers are reporting a two-month wait for the fuel efficient hatchback." Clearly, the U.S. market is undergoing a sea change. Toyota has the products it needs to change course, but it's hard to sell anything when people ain't buyin'.
UPDATE: Toyota just sent out a revised press release with June's sales breakout. The numbers in the press release are adjusted for selling days. The numbers used both by Automotive News and TTAC are unadjusted.
Talk about the right place at the right time. Toyota's Yaris three-door hatchnack– excuse me, three-door liftback— and four-door sedan have been taking numbers and kicking names in the American new car market. Well, duh. First, Yari are fuel-efficient wee beasties (34/40 or fight). Second, despite a whole bunch of piggish SUVs, Toyota is still the small-car manufacturer of the moment. And third, they are cheap ($11,350 and up). So it makes sense that ToMoCo would bring the five-door Yaris– already on sale in Canada and most of the rest of the world– to the US. Americans certainly seem to have warmed-up to hatchbacks. As the basic Yaris is already America-compliant in terms of crash testing and emissions, it's a no brainer. If only the D2.8 were so smart. Lucky? Prescient? Well-prepared? Your choice.
CAR Magazine is reporting that VW's 2002 concept car– the 1 Liter Car– is headed into production in [The Year of Our Overload] 2010. The name comes from the fact the VW uses 1 liter of gas per 100 kilometers (a standard European fuel economy format). Ferdinand Piech was seen cruising around in this puppy during his final days (or what we thought were his final days) at VW's helm. The crazy car, which looks more like a rolling fighter jet canopy, is mostly carbon fiber. It weighs an estimated 660 lbs. CAR figures it will have a two-cylinder diesel engine. The 1 Liter Car would likely be assembled in VW's prototype shop– limiting production to 1000 units per year. The price is not yet determined, but reckon somewhere between 20k and 30k Euros. With such a small production run, this sounds more like a glamour and "we can do it" car (reverse halo?) from VW, rather than a true plan to save the world. And it'll still probably breakdown in my driveway.
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