On April 1, new federal fuel economy CAFE standards went into effect. By 2016, new cars should get 35 mpg or thereabouts. The true number remains an exercise in abstract algebra. Says Consumer Reports: “The new standards require different fuel economy averages for each manufacturer and for each type of vehicle (such as small, midsized, and large sedans or SUVs).” There are plenty of loopholes and offsets. Extra credit for cars that take E85 Ethanol, for instance. And here is another huge loophole: (Read More…)
Cadillac contracted the services of the Ritz-Carlton to train Cadillac dealers to provide 5-star service. The Ritz Carlton, first recipient of the Baldridge award in 1999, has a side business in training other companies to provide quality service.
Don Butler, Cadillac’s marketing VP, said to Automotive News [sub] that the program will emphasize customer treatment rather than facilities. For instance, he said, a dealership employee might take an umbrella and walk a customer out to his or her car when it’s raining. “It’s simple,” Butler said. “It’s the things that don’t cost a lot of money.” If he would only know. (Read More…)
That was expensive: Close to the Daimler proving grounds near Stuttgart, the local fire department could pick the remainder of a prototype Pagani C9 über-sportscar out of the guardrail. Cost: €1m, give or take a few. (Read More…)
Conspicuous consumption gradually is becoming socially agreeable again around the world, or so it seems. Germany’s auto motor und sport cornered Mercedes-Benz Cars sales chief Joachim Schmidt at the New York Auto Show. Schmidt said “we are probably going to reach a plus of more than 10 percent in global vehicle sales in the first quarter.” Why the sudden growth? (Read More…)
While everybody is afraid of China flexing its muscles, the Middle Kingdom is stretching its feet. And its cars. Long versions are very popular in the world’s largest auto market, where one can hire a permanent driver for a few hundred $ a month. (Read More…)
Didn’t BMW make noises that they “want to be the number 1 luxury carmaker in the United States by 2012?“ If that’s still the case, then the boys from Bavaria better get their act together. Currently, they don’t look so good. In the March 2010 sales round-up, they came in with a measly 3 percent growth, while the market grew 24 percent. Then, as Automotive News [sub] points out, there is a dark horse: (Read More…)
Bob Lutz, set to retire May 1, feels confident he’s left GM fixed and on the right track. In an interview at the Detroit News, Lutz states: “I think I’m leaving the company finally focused back on the right thing, General Motors spent 30 years chasing every kind of metric — hours per vehicle, base-engineered content, parts re-use, attainment of diversity targets — 50 different metrics, and excellent products was sort of one. The naïve belief was if you track every one of the metrics and you do well on every one, the end result is a great car company — not,” According to Maximum Bob, that’s all behind now: “Over 8 1/2 years, we have been able to destroy that whole culture.” And bankrupt the company. Oops; I know, Bob had nothing to do with that. (Read More…)
Flights are delayed, so let’s hear Toyota’s take on on March sales: “We out-retailed both Ford and GM by nearly 40,000 units,”according to Don Esmond, head of automotive operations at TMS USA. “Toyota Motor Sales U.S.A. sold more vehicles to retail customers than any other automaker.”
In an article at Automotive News [sub], Toyota makes the case that the momentum is back, and that its incentive programs for March didn’t steal forward sales, but picked up those waiting on the sidelines during the recalls. And the incentives are not about to stop now. “Toyota Division boss Bob Carter said the New York auto show that the company has no plans to halt incentives. “Short-term, we gotta sell cars.'” (Read More…)
As you are reading this, worker bees in the employ of Volkswagen are putting the last touches on a revamped model of the venerable Phaeton, overtime be damned. When everything is in Ordnung and the Spaltmass (panel gap) is as tight as a vise, the Phaeton will be loaded on the next Lufthansa freighter, and – eat your heart out, Jack Baruth – it will be flown to Beijing. As China Daily has it, “Volkswagen AG is speeding up a face-lift of the $88,000 Phaeton sedan in time to unveil the model at the Beijing auto show and target China’s millionaires.” (Read More…)
Due to developments beyond my control, you, the Best and the Brightest, will be exposed to a whole load of BS today. Nothing but BS. All day. (Read More…)
They say you can’t go home again. True enough, but as you read this, Edward and the rest of my family and I will be winging our way to Baltimore for a long overdue family reunion. My father recently turned ninety, and my mother will be eighty-seven soon. So what is the obvious choice of today’s Curbside Classic? The Niedermeyer family car from the early sixties, a black 1962 Fairlane, and in every way exactly like this one, except that ours was the base stripper, not the deluxe 500 like this one. That alone tells you something about the old man. (Read More…)
A few days ago, we reported that Toyota had caved in to demands of the Commerce Bureau and the Consumer Protection Committee of China’s Zhejiang Province. Under the agreement, Toyota will reimburse Zhejiang customers for losses sustained from the RAV4 recall. Toyota will send people to pick up and deliver the affected vehicles, and will provide a loaner while the car is in the shop. The whole thing was started by New York’s AG Andrew Cuomo who strong-armed Toyota into supplying similar services to recall-affected residents of the Empire State. The Zhejiang-accord had The Nikkei [sub] worried: “Such an agreement could lead to demands for similar deals from customers in not only other provinces, but also other countries.” It didn’t take long. (Read More…)
U.S. District Judge Richard Leon approved a $185m settlement between Daimler, the Department of Justice (DOJ,) and the Securities and Exchange Commission (SEC). The Feds had alleged that Daimler violated the U.S. Foreign Corrupt Practices Act (FCPA) by drowning foreign government officials in money and gifts until they relented and ordered Daimler products. According to Reuters, Daimler’s German and Russian units each agreed to plead guilty to two minor counts of violating U.S. anti-bribery laws. Its China subsidiary will be subject to the two-year deferred prosecution agreement as well. That said, the bad boys from Sindelfingen may go forth and sin no more. Except for one niggling detail … (Read More…)
If you are in the market for a Toyota, then there is no rush to run to your dealer over the Easter weekend and to make any rash buying decisions. Toyota will extend its generous (or not so generous, depending on who’s doing the counting) incentives well into April. (Read More…)
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