Mercedes recently unveiled its new E-Class, much to the displeasure of eyes around the world. Still, the midrange Benz is all but guaranteed relative success in markets like the U.S. and Germany, thanks to high-powered lawyers and taxi drivers, respectively. The German-market car shown here is an E350 CGI, which refers to the direct injection that gives the car 292 hp. I believe that’s coming to the U.S. when the car debuts in place of the existing 268 hp V6.
Since Ford said sayonara to its stake in Mazda, the erstwhile allies have been been having a lot of those “relationship talks,” reports The Detroit News. And true to the cliches, it’s a case of “can’t live with you, can’t live without you.” Crack a beer if you’ve been there before. Anyway, therap, I mean, analyst Jim Hall of 2953 Analytics sat down with the two to get a feel for the situation. “They’ve had a very symbiotic relationship,” he tells DetN. “The risk for Ford is they lose Mazda’s small car expertise. They think they can make it up with Europe, but Mazda can do it cheaper. The biggest risk to Mazda is their ability to get components on a global basis is reduced because their volumes are so low.” Ford goes around insisting that their “close, collaborative relationship will not change.” Meanwhile Mazda tells the Japanese papers that the partnership will be “fundamentally altered.” But despite its tough talk, Mazda might need Ford’s help to expand in China, where it’s looking at a 30 percent sales bump in 08. “The thing that Ford gives Mazda, historically, is capital — and that keeps the Japanese banks off its back,” empathizes Hall. “Now, the banks are a major shareholder.” Ford and Mazda still hold monthly meetings, and US executives say Mazda’s need for engines, successful JV plants, and mutual respect will keep them together. But will Mazda’s start-stop technology be shared with Ford? And for that matter will Mazda’s “own” DSG box be a dry-clutch like the forthcoming Ford Powershift? If two cannibals share a lifeboat, which one survives? So many questions. And based on how things usually go in relationships like these, the crazy kids probably don’t know yet themselves.
Sometimes cars are just hunks of metal and plastic, thrown together to transport you from home to the workplace. And sometimes cars are alive with a romantic, adventurous spirit which transcends the petty concerns of mobility and efficiency. Via Jalopnik comes this four-part Shell Documentary on the 1958 Coupe Des Alpes. While you’re watching Alfas, Triumphs, Porsches and Benzes battle it out over the passes and switchbacks of the French and Italian alps, you may find yourself wondering if this really was the peak of vehicular romanticism. You may also find yourself out of a job if you watch all four parts at work. Which would be worth it. You can always find another job. Tip o’ the hat to Mr Paul Niedermeyer.
To qualify for additional bailout billions on March 17, Congress dictated that GM must clear two main hurdles: reduce its public debt by two-thirds (via debt-for-equity swaps), convince the United Auto Workers (UAW) to accept half of contributions to a retiree healthcare trust in the form of GM stock, and lower union workers’ wages to parity with foreign automakers. OK, three. Three main hurdles. Oh, and eliminate the union jobs bank. So, four. Four hurdles. Within two hours of the Bush’s bailout bonanza, the UAW considered the conditions and said uh, no. And now GM’s third largest bondholders have left the investor committee considering the mandatory d-for-e swap, claiming “We’re just not good committee members.” Not so funny now, eh Mr. Bond holder? More specifically, Bill Gross of Pacific Investment Management Co. (a.k.a. Pimco) has just administered the official kiss of death to GM’s shot at meeting Congressional loan conditions. Either the pols will change the rules (the “we’re sorry we were so mean” scenario), or this is it: the remaining money will be used for GM’s post Chapter 11 debtor-in-possession financing.
Tesla has increased the price of its Tesla Roadster by pricing once-standard equipment at $6,700. Customers who thought they’d locked-in pricing by submitting up to a $50k deposit, haven’t. “We want to have healthy margins on the car to guarantee the viability of the company,” says Tesla spokeswoman Rachel Konrad. “The margins are really important on this car for the next group of investors, whether it’s public shareholders in an IPO, the federal government looking at federal loan candidates or the next group of venture capitalists.” According to Wired, the biggest increase is to the “high-power connector” that recharges the car’s lithium-ion battery in as little as three hours. Once offered as standard equipment, it now costs $3,000. Tesla still includes a mobile 110-volt connector in the base price. But it requires as much as 37 hours to recharge a dead battery. “That can seem startling, and it is a big change,” Konrad admits. “But we have a lot of customers who use their mobile charger as a primary charger. Even with a 110 charger plugged in overnight, they’re nearly full again the next morning, because most customers aren’t driving the car to empty. They’re constantly topping off the battery.”
My Czech buddy “Bob” asked me to go on up somewhere north of Fresno and grab a 1969 Chrysler 300 Convertible for him. Low pay and the distinct possibility of bloody knuckles? Yes! Yes despite the fact I really dislike the whole middle man thing. In fact, just like the 1981 Corvette, the seller of this Chrysler “needed” the money in cash because he’d heard about internet scams involving the Czech Republic. Never mind the fact that I– a good patriotic American– would be handing him a cashier’s check from BofA. Nope, must be dead presidents, and in the flesh so to speak. So, with forty $100 bills burning my pocket, I hopped a plane up to Oakland where Jalopnik’s Murilee Martin picked me up.
Last year, Toyota finished the year with an unsatisfying quasi-tie for the title “world’s largest automaker.” The NY Times reports that ToMoCo has won 2008’s volume battle by a 620k unit margin. According to US News and World Report’s Flow Chart Blog, this is no bad thing. Blogger RIck Newman argues that even the most well-insulated GM executive can no longer deny that things have been going horribly, terribly wrong. The company can move on dot org. It can accept the fact that it’s an underdog that must fight for consumer consideration. It can lose the size queen sheen, and operate as if profits are the real measure of success. (A point GM CEO Rick Wagoner made last year when his minions cooked the books to retain the world’s largest automaker title, before the company ran out of cash.) Most importantly of all, Newman argues, Rick Wagoner can finally tell the truth about cars.
And here they are: the final group of TTAC logos submitted by our Best and Brightest for our mutual consideration. The contest, such as it is, is now closed. The next step: we’ll choose our top ten and put them to a popular vote. Although we reserve the right to overturn democracy, the chances are excellent we won’t. There are a number of entries that are significantly better than what we have now. Which is nothing, but you know what I mean. After the selection process, we’ll offer readers the chance to buy the logo from car tatts. We’ll also put together some unique merchandise, like a branded rescue knife. Meanwhile, once again, I thank everyone who sent us a logo. I appreciate your time, dedication and passion. [NB: Please click on images twice to defeat the WordPress compression algorithm method.]
“We now have a special bond with the American public,” said a certain Mr James E. Press of the Chrysler Motor Company at the Detroit Auto Show. Specifically, Mr Press’s firm owes American taxpayers $5.5b (including Chrysler financial aid) and have no real way of paying it back. But Chrysler’s gonna make it worth our while anyway; they’re gonna give Americans what they want. Wait, what do we want again? High-quality, practical, efficient, fun cars that hold their value? Hell no! We want the fourth installment of an aging action franchise to feature the cars and trucks of The New Chrysler! And boy are we gonna get that! Automotive News [sub] reports that Chrysler will give the makers of “Terminator: Salvation” an undisclosed amount of your tax money to feature their top-notch products alongside a certain Mr Christian Bale. Why? “We have a following with the Terminator movies and we are going to continue with that,” gushes a ChryCo media flack. Because things have been going so swell up to now? Because if Bale can save the Batman and Terminator franchises, you’ll make him CEO? Because you think machines will end the world before the American people get around to asking what you’ve done with their money?
Chicken and egg this. If Chrysler doesn’t score an additional $3b worth of bailout bucks, Fiat can/will walk away from their agreement to “buy” 35 percent of the ailing American automaker. The Wall Street Journal quotes “people familiar with the pact” to substantiate the proviso. Equally anonymous sources told the Journal (we hope) that if the loans go through, Fiat will take three seats on Chrysler’s Board of Directors. And then, “If Fiat meets goals for improving Chrysler’s operations within 12 months of the agreement, Fiat would have the option of buying an additional 20% of Chrysler for about $25 million, said people familiar with the matter. Details of the goals weren’t clear.” Twenty-five million? They’re joking right? Or is that the amount Cerberus would pay Fiat for 20 percent of Chrysler?
Capn’ Mike is back from the Middle East. Our Road Test Editor has been busy looking for something tasty to take to his next posting in Germany. MS reports that the manual Mercedes 300 is a diamond in the smooth, offering more on-tap torque than its auto-equipped sib. It’s also a depreciation lover’s ideal whip. Not only is the manual transmission dead, but cars so equipped are a drug on the market, and it ain’t cocaine. In fact, I know of automotive journalists who can’t drive stick. After trying any of the new-generation paddle shifters, you can see why they don’t bother. At the risk of reigniting the debate over the zen and the art of the manual transmission, a properly sorted paddle shifter is wikkid pissa fun. Click, clack, track attack. But then, so is not getting your car stolen; and car thieves are just as stick ignorant as the general population. OK, peace of mind isn’t “fun.” But there’s nothing worse than waking up to find your car’s been lifted. Unless you paid for the service– which is very, very wrong and I don’t know a guy who knows a guy who can make it happen. And yes, the audio quality sucks today…
Why does The Detroit News scribe Scott Burgess feel the need to diss environmentalists to praise a gas guzzler? Defensive much? All the time. In this case, Scott uses a Cadillac Escalade Hybrid to launch the usual condescension cruise missiles on tree huggers. “When the word ‘hybrid’ is scrawled across the front, back and sides of this big SUV… It creates a moral dilemma even Dr. Laura may not be able to solve as well as a jagged little pill for 40mpg.org to swallow. Can an American have a vehicle with room for eight but be environmentally sensitive? Could the crest and wreath really create the Cadillac of hybrids? Apparently so. The new Escalade hybrid offers prestige, power and just enough greenness to annoy environmentalists. Naturally, I love it.” And I love that “room for eight” thing. As if the fact that all those empty seats in the blinged-out Yukatoahoeburbalade make it somehow more environmentally friendly like, say, a minivan.
When it comes to moving the metal, Toyota doesn’t fool around. OK, they did do those stupid Tundra truck tricks. But how do you think a man like Mr. Toyonda got to be a man like Mr. Toyonda? By building on the brand’s rep for reliability. To that end, to expand the market for Priora and other hybrid models, Toyota’s adding “Toyota Certfied Used Hybrids” (TCUH) to their Toyota Certified Vehicles (TCUV) program. “Customers benefit from additional inspection and warranty coverage on Toyota hybrids within the program. Each vehicle comes with the three-month/3,000-mile comprehensive warranty, seven-year/100,000-mile limited powertrain warranty and roadside assistance plan offered on traditional TCUV models.” The program also “brings added awareness to a pre-existing eight-year/100,000-mile factory hybrid battery warranty.” In other words, same coverage, more rappers. The TCUH pre-certfication process includes 14 additional hybrid-related inspection points, including the hybrid transaxle, control modules and battery. Existing owners should benefit from improved residuals. Now, if Lexus will do the same for the LS600hL…
Definitely infrequent for a few weeks while I’m in Europe, hunting the elusive Euro: An overview of what happened in other parts of the world while you were in bed. TTAC provides round-the-clock coverage of everything that has wheels. Or has its wheels coming off. WAS is being filed from Berlin – when I’m in Berlin.
Alliances ahead: The not yet wrapped-up tie-up between Fiat and Chrysler “may spur Japanese automakers to look into alliances of their own,” the Nikkei (sub) writes. Already, Nissan and Chrysler produce each other’s vehicles on an OEM basis, Suzuki teams with Fiat in environmental technologies. “While these two Japanese firms may need to rethink their strategies, the Fiat-Chrysler alliance could have broader implications,” says the Nikkei: “Budgetary constraints may force Japanese carmakers to focus on their strengths while striking partnerships in other areas. Foreign rivals are said to be looking for Japanese partners for the technologies needed to make fuel-efficient vehicles.” The Nikkei speculates that this could be”setting the stage for an industry reorganization involving domestic and foreign carmakers, including such midtier players as Suzuki, Mazda and Mitsubishi.”
Japanese carmakers have hat in hand: Mazda has appealed to the Japanese government for financial assistance to cover roughly 10,000 employees’ wages at two domestic plants where it has scaled back production, says the Nikkei (sub.) Mazda will pay 80 percent of the basic wages while output is suspended. The government subsidies are to cover a portion of these salaries. Mitsubishi has already filed for such aid, Nissan plans to do same soon.
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America may be generally averse to the hatchback genre, but hot hatches are a different matter. VW’s stellar GTI sold well enough stateside– after VeeDub eventually got around to bringing over the current gen. As Berkowitz will tell you, they would have sold even more uber-Golfs if the model was anything like reliable, if VW dealers weren’t such NSFWs and the starting price was a few thousand lower. OK, the Saturn Astra flopped, the Audi A3 just stood there, watching and even the hideous, horrendous U.S.-spec Ford Focus sells best in its four-door iteration. Hmm. What was I saying? Ah yes, the Euro-Focus RS. They’re starting to build them in Germany, and pistonheads on the other side of the pond are all abuzz. John Fleming, FoMoCo’s Europe’s CEO stokes the stoked. “We’ve had a huge amount of interest in this model from the loyal army of Ford RS enthusiasts as well as potential customers who have never owned an RS before. I am confident that they will fall for it the moment they get behind the wheel.” Which, for us in the U.S., is never.
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