Figuring many TTAC readers would be interested, I input pricing for the new 370Z into TrueDelta’s pricing database the day it was released. Since TTAC licenses this information, this site is about the only place you can already configure the new, 332-horsepower 370Z. Media reports suggest that the new car handles better and has a nicer interior than the less compact, slightly heavier 350Z. Compared to the 2008, the base price is up $1,425, to $30,625 (the $30,000 figure you’ll read elsewhere ingores destination). BUT the new car has airbags, stability control, and a few other features as additional standard equipment. Adjust for these, and the 2009 is actually priced a bit lower than the 2008. The more agile Mazda RX-8 runs about $3,500 less, but no doubt most people will opt for the much more powerful Nissan when choosing between these cars. When both cars are loaded up, the related Infiniti G37 coupe runs about $3,800 more than the 370Z. But adjust for the Infiniti’s additional content (sunroof, additional power seat adjustments, etc.) and the difference is close to zero.
[Michael Karesh’s TrueDelta.com is a TTAC info provider]
We’ve already flagged the fact that Delphi may be lining-up at the federal bailout buffet, what with GM depending on it for its survival, and the survival of GM and Chrysler being all that matters when it comes to taxpayer trough snuffling. Our TTAC radar is picking up more blips on the domestic auto industry bailout bucks front. In a report revealing that Chrysler is having a little trouble finishing the paperwork on their $4b bonanza, Wall Street Journal writer Jeff Bennett drops this little McNugget in the middle of his piece (just below the snooze button): “Meanwhile, the Treasury Department said it will decide on a case-by-case basis whether other companies connected to the struggling automotive industry should be provided emergency aid from the $700 billion bailout pot.” So that’s not a no. Of course, that depends on the Treasury Department receiving congressional authorization for the second tranche from the aforementioned trillion dollar-ish Troubled Asset Relief Program fund. ‘Cause they already “spent”– sorry, “invested” $354b of the $350b previously authorized. Paperwork, eh? Meanwhile, what’s the WTO going to make of all this?
Don’t ya just love marketing guys who trot-out terms like UIO (units in operation, i.e. sold cars) and say things like “We have seen both positive and neutral perceptions grow, and negatives decrease. So we have moved lots of negative perceptions to neutral”? Neither do I. Of course, I’m sure Hyundai Motor America’s VP/Marketing Joel Ewanick is, like most of God’s children, a lovable human being. And if you’re talking to Marketing Daily (MD), what’s a UIO between friends (sounds like something Morris Day would sing about to me)? But I digest. And here’s some interesting factoids from the Ewanick’s Q&A. “We know that 40% of those buying Genesis have traded in vehicles like Lexus, BMW, Mercedes, and Porsche. We know what their income levels are, and we are finding that people are gravitating from luxury or near-luxury cars to Hyundai.” MD reminds us that “since the sedan version of Genesis went on sale in July, the company has sold 5,127 of the cars, including 1,151 of them last month.” That’s far short of Hyundai’s targets, but a pretty good showing in a market so down it has to reach up to tie its shoes. Anyway, about that Super Bowl ad…
Back when I worked for CNN, I went to some damn auto show or another. I was trying to interview a gentleman about his cherry ’34 Chevy when something roughly approximating depth charges went off. I turned around to see Paul Revere and the Raiders performing. Well, Paul anyway. And a bunch of middle aged men dressed like, what? Minute Men? Pirates? Thanks to acoustics that would make the inside of Quaker oatmeal box sound like the studio at the top of Bose Mountain, I couldn’t hear a word they were singing, which was OK. No one was paying attention anyway. And both of those who were knew all the words. Now I don’t expect the Jonas Brothers to be afforded the same indifference when they do their thing at this year’s North American International Auto Show. And who knows? Maybe the Doobie Brothers will convince a new generation that Jesus is just alright. Oh yeah. But I was thinking, who would be the perfect artist to perform at this year’s auto show? The obvious answer is Maureen McGovern from the original Poseidon Adventure, singing There’s Got to Be a Morning After (pass the Alka Seltzer will ya?). But you guys didn’t get to be the B&B by going for the easy laughs. So put it out there. Who should take center stage at NAIAS?
Well why not? If the the Fed can justify “emergency” approval of GMAC’s switch to bank status as a necessary step to save GM, it’s not that much of a leap to suggest that bankrupt parts maker and GM spin-off Delphi’s next in line for some bailout bucks. As we’ve said here before, no Delphi, no GM. Bloomberg puts it this way: “GM has already spent more than $11 billion to help Delphi, the largest U.S. auto-parts maker, exit bankruptcy. Delphi has been unable to get further loans to help it leave court protection because of stricter credit requirements and declining revenue from slow auto sales.” And now… “We would not be surprised to see additional government funds to GM to support a Delphi solution,” JPMorgan Chase & Co. analyst Himanshu Patel said in a report today. As JP is up to its eyebillions in GM, Chrysler, Chrysler Financial and GMAC, it’s a good bet this is more of a trial balloon than mere conjecture. Bloomberg points out that the idea of throwing some cash at, I mean arranging some loans for Delphi is no longer beyond the remit of the increasingly vaguely remitted $700b Troubled Asset Relief Program.
Lord love a duck, but sometimes the most idiotic things surface on the internet. And a certain piece favorably comparing Ferrari’s environmental impact to that of the Prius doesn’t have the excuse of coming from some blogspot-based Private Snafu in the Army of Davids. No, it comes from Car And Driver. Print Media. The Big Boys. Etcetera. And since they don’t have the decency to expose their own baldfaced disingenuousness and sensationalist ignorance-peddling until after the jump, we’ll return the favor. Car And Driver’s Steve Siler is an idiot, and that’s all we’ll say unless you bump our page views by hitting the jump.
The analysts at Credit Suisse (CS) get no points for predicting the continued cratering of the U.S. car market [full report after the jump]. But one has to wonder just what in the Hell GM was thinking when it predicted 12m unit sales in the U.S. as late as late summer. No matter how you cut it, or what incentives GM’s offering, the American automotive industry is looking at sustainably low numbers. And speaking of “sustainability,” CS is now starting to factor in consumer fears of bankruptcy. When the words “bailout backlash” start to appear, as they surely will, it’ll be all over bar another $50b or so in taxpayer subsidies. Sorry, loans. Meanwhile, there is some good news here: CS reckons The Big 2.8’s production cutbacks will clear their 35 percent overstock. And “all else equal, GMAC’s increased access to funding could increase GM’s sales by several hundred thousand units in 2009.” Good luck with that.
The team behind the Eliica is currently seeking corporate sponsorship so they can build this car at an estimated price tag of $225k. That buys you a 0-60 mph time of four seconds, and a 0-100 mph of seven seconds flat. Oh yeah, and eight wheels. Because six wheels is weak sauce and 10 wheels is just plain ostentatious. (via Jalopnik)
The bailout-beggar line just got a little longer, as Green Car Congress reports that the US Fuel Cell Council is requesting a cool $1.17b of your hard-earned tax dollars (kudos for making the smallest handout request in months!). The money would come in the form of full funding for a number of programs authorized in the 2005 Energy Policy Act, including deployment programs; development of a refueling infrastructure; learning demonstrations; building domestic manufacturing capability; accelerating public-private research; and investing in fuel cell transit programs. And they aren’t leaving it there, either. A July 2008 study by the National Research Council estimated that a total public-private investment of about $200 billion would be required from 2008 to 2023 to support a transition from gasoline to hydrogen fuel cell vehicles, at which point fuel cell vehicles would become competitive with gasoline-powered vehicles. Or, as we find so many causes for repeating, not. Though hydrogen fuel cells offer more long-term promise than say, ethanol, we’re still talking about some serious pie in the sky. At an appropriately astronomical cost too. Sorry kids, but if we’re to spend government money on something like this, I’d like to see it go towards lithium-ion battery development, which shows more medium-term promise and doesn’t require a new ground-up infrastructure.
Not for us though. We’ve had the luxury of several pre-bailout months of foreknowledge of this particular $33m white elephant. The kids at Fox News, on the other hand, seem to have only just found out about the UAW’s Reuther Family Education Center, and they’re downright apoplectic. The $33m resort, nestled on “1,000 heavily forested acres” has lost $23m over the past five years, despite charging as much as $85 in green fees. Besides improving the UAW’s collective handicap, the Family Education Center provides accomodations for retreats and conferences which give members “a deeper understanding of the UAW and the union movement away from the routine of their daily lives,” according to the Center’s website. All of which has Fox reaching for the “union-basher” volume of its rolodex.
To: All GM Dealers
Subject: GMAC APR RATES
Date: December 30, 2008
I wanted to update you on the recent actions that have taken place with regard to GMAC obtaining bank holding status.
We believe GMAC’s ability to extend financing will be greatly enhanced.
To that end, I am pleased to tell you that starting today, GMAC will be offering reduced rate financing as low as 0% APR for up to 60 months on select new cars and trucks. The reduced rate financing is available to qualified buyers (S, A, B and C tiers) through January 5, 2009.
In addition, we have stackable bonus cash and/or dealer cash of $500 to $4,250 on some models.
Following are examples of the supported rates being offered:
I know this is The Truth About Cars, not the inside baseball truth about the finance companies that prop-up the domestic automobile manufacturers. Dot com. But we’ve been following this story because, well, if GMAC had gone down, GM would have gone down and GM still makes cars. Well, after the holidays. And the shenanigans involving the federal government’s rescue of GMAC have been nothing less than shameful. First, Uncle Sugar signals GMAC in no uncertain terms that if the bankruptcy-bound lender doesn’t convert 75 percent of their debt into equity they can go ahead and fail. Then, on Christmas Eve, before we learn the results of that d-for-e swap, the Fed says, never mind, you can be a bank. We’ll just use our “emergency” (as opposed to superhero) powers to bend our own rules. And still GMAC doesn’t reveal the success or failure of the swap, claiming they needed time to tabulate the results. And now… we know. Surprise! Not. The Wall Street Journal reports “Struggling finance firm GMAC LLC said Wednesday that bondholders tendered $21.2 billion in notes in its bid to raise capital for its new status as a bank-holding company. The lender’s goal had been to raise $30 billion by converting 75% of its issued debt into preferred stock holdings. The offer expired Friday after having been extended four times.” So they received prior approval AND a $6b federal (that’s your taxes) investment and they STILL missed the legally mandated target by $8.8b. One rule for you, one for former U.S. Treasury Secretary and current Cerberus Chairman John Snow.
The Chevy Aveo has been on TTAC’s Ten Worst List since we inaugurated the public service. In 2008, it remains at the top of the steaming pile, garnering a gong at the number three spoty. To quote from this year’s encapsulation: “The Aveo continues to offer a snap-crackle-pop interior, mediocre gas mileage, roly-poly handling and gutless onramp terror.” So how in the world could Detroit News carmudgeon Scott Burgess find anything nice to say about Chevy’s Korean American revolution, never mind a whole column’s worth? Let’s s-s-s-s-sample. “It’s roomy, peppy and comes with more personality than similarly priced competition.” Oh really? Vera, Fit, Yaris? “The hatch helps the Aveo5 stand out. It’s a good look, and it plays multiple utilitarian roles, such as making it extremely easy to park as well as load big things in the back. Few other exterior features add to its looks. It’s not like the designers had a lot of sheet metal to work with.” So… it’s a hatchback. Gotcha. “Chevy upgraded the interior materials, though there is a certain economical feel to this vehicle. Every part of the cabin feels well built, though it’s difficult to know how it will hold up over the long haul.” “Economical feel.” Is that a synonym for horrifically cheap?
Never let it be said that TTAC doesn’t kick a bad idea when it’s down. (It’s the best way to make sure it stays down.) Obviously, it’s no secret that myself and several members of TTAC’s crack (smoking) freelance team consider E85 the biggest boondoggle outside of the Motown meltdown boondoggle. Corn juice for fuel is a fundamentally flawed concept on environmental, energy, practical and even a geo-political basis. But even as the U.S. ethanol customers line-up none deep for their chance to prove that “no one ever died defending a corn field,” even as the ethanol industry continues to block cheap E85 imports from Brazil, even as the major players suck-up to Uncle Sugar to secure a $1b bailout (no really) to stay alive in a business where they already enjoy a .50 a gallon “blender’s credit” and a federal requirement for someone somewhere to use the stuff (a.k.a. the 36b gallon by 2020 Renewable Fuels Standard), they’re shifted gears to open a second front in their war against common sense. AG Week reports that the push for a federal mandate to raise the ethanol content in regular gas from E10 to E15 (and beyond) continues apace.
It won’t be long now: a parody ad of Chrysler’s thank you for your “investment” ad, to join the bailout parody ad and the anti-anti-bailout (i.e. Toyota) viral email. Meanwhile, Chrysler’s still catching heat for spending big bucks on the post-bailout ads in USA Today, The Wall Street Journal, The Atlanta Journal Constitution, online (even TTAC!) and other media. TTAC flagged the obvious waste ogf taxpayer money and condescension on the 23rd, but the MSM have just caught on. Autoblog reports today on Fox News’ Monday report slamming the automaker for the campaign. Their boy Newt’s minion does the dirty. “‘It’s quite ridiculous to be spending that kind of money,’ said Princella Smith, national spokeswoman for American Solutions, an organization headed by former Republican House Speaker Newt Gingrich. ‘Those ads are just a precise example of the fact that they do not get it … and it’s just in our faces.'” So, now how much did they pay? “A full-page ad in The Wall Street Journal runs between $206,000 and $264,000, and a full-page ad in USA Today runs between $112,000 and $217,000.” Wow. Still, $4b buys you a lot of ad space, if not a single class-leading automobile. Oh, and why haven’t MSM picked-up on the fact that the ad’s picture is a fake?
Figuring many TTAC readers would be interested, I input pricing for the new 370Z into TrueDelta’s pricing database the day it was released. Since TTAC licenses this information, this site is about the only place you can already configure the new, 332-horsepower 370Z. Media reports suggest that the new car handles better and has a nicer interior than the less compact, slightly heavier 350Z. Compared to the 2008, the base price is up $1,425, to $30,625 (the $30,000 figure you’ll read elsewhere ingores destination). BUT the new car has airbags, stability control, and a few other features as additional standard equipment. Adjust for these, and the 2009 is actually priced a bit lower than the 2008. The more agile Mazda RX-8 runs about $3,500 less, but no doubt most people will opt for the much more powerful Nissan when choosing between these cars. When both cars are loaded up, the related Infiniti G37 coupe runs about $3,800 more than the 370Z. But adjust for the Infiniti’s additional content (sunroof, additional power seat adjustments, etc.) and the difference is close to zero.
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