Having laid into GM today for trumpeting a government loan repayment, it would be churlish not to point out that, by Detroit standards anyway, GM’s “partial refund” is actually kind of a big deal. Take today’s news from the nearly year-long liquidation of “Old CarCo,” the poisoned (in some cases, literally) remains of what was once “Bad Chrysler.” Bloomberg reports that the US Treasury’s $5b line of credit has been placed in the “unsecured” category of Old CarCo’s last debts, meaning recovery is “undetermined.” As in not so very likely at all.
Already a good year into its hype-cycle, Toyota’s much-discussed FT-86 sports coupe is apparently losing some of the focus that made it an instant (theoretical) hit with enthusiasts. According to Autocar, Toyota has given up on its price point goal of $20,000 for a base model in the Japanese market, bumping MSRP targets to $23k for a base model and $26k for loaded examples. No word on how this will affect US-market prices, which Toyota has never disclosed goals for. And if this were the only news coming out of FT-86-land, we might have ignored it altogether. Sadly though, the price shift reflects larger trends within the FT-86’s development, none of which are wildly promising from the perspective of the enthusiasts that this car was allegedly being built for.
In the mid sixties, Cadillac gave very serious thought to replacing its aging V8 engine with an OHC V12. And blog.hemmings finally convinced Cadillac to send them some detailed pictures and more information. Looks mighty production ready, but that air cleaner sure makes it looks a lot less sexy than a Ferrari with a bank of Webers. (Read More…)
Much of the speculation in the leadup to Fiat’s five year plan announcement centered on a long-rumored spin-off of Fiat’s auto business from the rest of the industrial conglomerate. Speculators even drove up Fiat’s share price considerably yesterday on hopes that the long-awaited spin-off would be announced today. And sure enough, Fiat did announce today that it would be spinning off part of its business. The only problem, according to Automotive News [sub], is that the newly-formed unit isn’t made up of Fiat, Alfa and Lancia, but Iveco and New Case Holland. Instead of its car operations, Fiat is bundling off its heavy commercial truck and tractor business into a new entity known as Fiat Industrial S.p.A. (Fiat-branded light commercial vehicles and Fiat Powertrain will remain behind).
Today’s CC Austin A40 Devon too frumpy for your taste? Austin’s Chairman Leonard Lord (shouldn’t that be the other way around?) read your mind. When he saw Jensen’s handsome new Interceptor, he made a deal for Jensen to build a sporty body to plunk on its A40 chassis. The export markets, America in particular, were in Lord’s mind with the A40 Sports. But despite a revised cylinder head, the inevitable twin SU carbs and 50 hp, it didn’t really catch on, especially with the yachting crowd. (Read More…)
The last ten years have not been kind to Fiat’s Alfa-Romeo brand, as 2009 sales levels fell to about half their 2000 volumes. Having put Alfa on “strategic review” and stuffed it into a “brand channel” with Maserati and Abarth, CEO Sergio Marchionne has had a change of heart, and is now “determined” to build the brand into a “full-line premium carmaker.” According to Automotive News [sub]’s coverage of Fiat’s five year plan presentation, that means committing to a US presence targeting 85,000 annual sales by 2014. For a sense of scale, the Alfa brand sold a grand total of 103,000 units globally last year. And Alfa is going to have to kick ass around the world to meet Sergio’s goals. By the time Marchionne expects American Alfisti to buy 85k units each year, he wants the brand’s global sales to have increased nearly five-fold to half a million units. Ambitious doesn’t even begin to describe it…
Given Ferrari’s pricing politics, it seems safe to assume that Ferrari/Maserati is a fairly profitable enterprise for its 85 percent owner, Fiat. Indeed, with over $2.5b in combined revenues last year and an 11.5 percent operating margin, the Italian sportscar brands aren’t exactly dying of economic downturn-related causes. But at today’s presentation of Fiat’s five year plan, CEO Sergio Marchionne revealed that his firm has big plans for Ferrari/Maserati, and gave unprecedented planning details as proof of the brands’ path towards even greater profitability.
Ooo, what a cute little car. Yes it is, if the pygmy look is your thing, but this A40 carries the weight of some serious world financial history on its skinny little tires. Like as in our trillion dollar deficits. Seriously. This Austin was the first import car bought in significant numbers right after WWII, which at the time was a godsend to Great Britain, helping to bail them out of their horrible debt load, the price of winning the war. But in the process, the Austin was the forerunner of an overwhelming import boom that hasn’t ended yet, and which has significantly affected our own economy and its crushing debt load. Was the cute little Austin A40 an economic Trojan Horse? (Read More…)
Driving enthusiasts love to hate the Toyota Camry. Yet, despite the company’s current troubles, it remains the best-selling car in the United States. Hyundai would love to steal the crown, or at least tens of thousands of customers. So it recently launched a totally redesigned 2011 Sonata and will be advertising it heavily. Should Toyota […]
Having acquired Saab’s old 9-3 and 9-5 platforms, Beijing Auto is wasting little time in putting the old Swedish warhorses back into action. In fact, if you cover the digitally-altered front end of this C71 concept, you’ll notice that it’s barely been changed. And that’s not all: at least one of BAIC’s two new SUV models seem to take more than a little inspiration from Jeep’s Wrangler and Grand Cherokee. Rather than simply ripping off popular models as other Chinese automakers do, BAIC’s designers seem only to seek inspiration from their partner firms. The weird part: BAIC has signed a deal to sell new, “real” Saabs at its Chinese dealerships. The real deal and the cheap, outdated knockoff sold in the same dealership? Even by Chinese standards, that’s a bizarre strategy. [via ChinaCarTimes]
I’m in the midst of an automotive dilemma: I’ve got two cars: a 2007 Nissan 350Z and a 1998 Volkswagen Jetta. I picked up the Jetta this fall to serve as a winter car. The Jetta turned out to have a brake problem (fixed), leaking shocks and a hole in the muffler. I really wanted something a little sportier for the winter. The Z is my baby, and I want to retain money to continue refining it into an AutoX menace, but the Jetta is killing me, Smalls! I see three alternatives: 1. Fix up the Jetta with nice suspension parts and a new cat-back, making the daily drive less slow. 2. Sell the Jetta, buy something else in its place. (Focus ZX3, GTI 1.8T, E36 BMW, Civic?) 3. Fix the Jetta to OEM specs, save money for the Z. What should I do?
Red light cameras in the state of California originally were first used to issue tickets to the owners of vehicles that entered an intersection after the light had turned red. In just the past few years, the cameras have shifted focus and now primarily ticket the owners of vehicles that make rolling right-hand turns on a red light. Assemblyman Tom Ammiano (D-San Francisco) wants to further transform the system by introducing green light cameras. The new system, which initially would only operate at a single intersection in Ammiano’s district, would target people who turn right while the light is green.
Let's carry out the five year plan in 4 years! Picture courtesy nhikmetran at flickr.com
Today is the day. Today, Sergio Marchionne will present his 5 year plan for Fiat. 5 year plans are usually reserved for a reunion of unreformed communist party elders. But Fiat respects traditional values.
In his opening remarks, Marchionne took a shot at the mongers of gloom and doom. He had two words for analyst reports that dissed Chrysler’s operating profits: “Boulevard press.” This is Euro-slang for tabloids, or the business section of the National Enquirer.
“As we all know,” said Sergio, “in business it is ultimately only facts that prevail.”
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