We’ve already laid into Saab’s new 9-5 for launching with with only the 300hp, AWD “Aero” trim level, for which the former GM division wants a base price of about $50k. That asking price just became a little more ridiculous as Volvo has announced base pricing for its new S60 sedan at $37,700. And guess what? That’s for the 300 hp, AWD “T6” version as well, which is also the only trim level available at launch. Volvo 1, Saab 0.UPDATE: OK, OK, we admit that Volvo’s “win” here is minimal. A lower base price does potentially bring in more buyers, but on an apples-to-apples basis, the two Swedes are pretty much a wash, price-wise. Which still leaves plenty of room for debate… and inevitable references in each others reviews. Besides, both models will offer cheaper versions over time. Does this make us think Saab’s $50k fan tax is any less ridiculous? Not a bit. But then, only time and test drives will truly tell if Saab’s gamble has paid off.
A study by Bosch, using R.L. Polk registration data [via GreenCarCongress], finds that fears of a diesel crash in the US might be overblown. The study found that vehicles offering diesel powertrains as an option recorded 30 percent diesel take levels. By comparison, ten percent or fewer chose hybrid versions of the Camry and Escape, although volumes of those vehicles are higher than the exclusively German nameplates that offer diesel options. In any case, these take numbers are certainly higher than the market had predicted. The diesel take rates by model are:
Speaking at the same Detroit conference on the auto bailout that Steve Rattner and Ron Bloom attended, the Center for Automotive Research’s Sean McAlinden proclaimed the end of Detroit’s era of unsustainable high wages. In 2007, said McAlinden, building a car in North America cost GM about $1,400 more per car than it did Toyota, thanks largely to a $950 health care charge. Since then, GM’s bailout and renegotiated wage and benefit contracts with the union have actually brought GM’s hourly compensation to just under what the CAR says the transplants pay. The AP reports that McAlinden’s estimate of GM’s average hourly worker salary is $69,368 while the transplant average is $70,185. Better still is McAlinden’s prediction that
between 2013 and 2015, Toyota could even be paying $10 more per hour than GM unless the Japanese company reacts and lowers wages.
And all it took was giving the UAW a $17.5 stake in the new GM!
Former Ford exec Ann Doyle sure seems to think so, penning an op-ed in the Detroit Free Press titled Another female auto executive bites the dust. Her thesis?
It took General Motors executive Susan Docherty 24 years of blistering hard work to build an impressive career in one of the toughest leadership laboratories for women: the global auto industry. It took GM Chairman and CEO Ed Whitacre only six months to nearly destroy it.
Given how closely GM has embraced identity politics when it suits its purposes, Doyle’s suggestion is kind of a big deal. But is there anything to it?
The Chinese leader of the purchasing department of a very large Chinese car manufacturer once informed me: „Clutches? Don’t buy any Chinese clutches. They are all [expletive deleted]. We import all of our [expletive deleted] clutches.” Volkswagen is setting out to change that [expletive deleted] situation. (Read More…)
Chrysler crowed over its 9.1 percent market share in its Q1 results conference call yesterday, and though CEO Sergio Marchionne refused to be pinned down on an exact time frame, an IPO this year looks more likely than ever. Similarly, BusinessWeek reports that GM’s Ed Whitacre has hinted that a Q1 profit is likely, as is an IPO in Q4 of this year or early next year. This improvement in both bailed-out automakers was underlined by former Presidential Auto Task Force head Steve Rattner, who said the two firms were “meeting expectations,” at a Detroit-area conference. But Rattner also put his expectations into some context by saying
When we did this restructuring we never expected a full recovery of our investment. If it ends up costing us $10 billion we should consider it a success. For about $10 billion we avoided economic and human calamities… I would suggest that that’s a pretty effective cost of government stimulus
That assessment is down considerably from Rattner’s last prediction, which expected a taxpayer profit on the auto bailout.
Here’s a video of the AE86 being put through its paces by the Drift King himself, Keiichi Tsuchiya. Not so much drifting in the current sense, but hustling the Corolla in his style on a race track. As much as I can appreciate the skills that go into drifting, I prefer to see a car being driven as fast as possible, not just for show. In the next video, he’s pitted against a newer Civic EK9 in a three lap grudge race.
Is it a stretch to say that finding this beater Corolla AE86 GT-S on the street is the equivalent of finding an original and beat up 1970 Hemi ‘Cuda? Maybe, but they’re both legends, and while the odds of finding the GT-S are definitely better, they’re not exactly easy to come by either. I’ve had my eye out for one for quite a while, and suddenly this showed up in the neighborhood; a wish fulfilled. Now I’d be happy just to catch that non-hemi beater ‘Cuda I’ve seen driving. Anyway, with all the excitement building about the coming FT-86 coupe and a possibly even cheaper and lighter RWD car, it’s time to take a look at its inspiration. (Read More…)
A federal judge on Thursday sharply criticized the legal filings of an Australian photo enforcement vendor less than two weeks before a jury trial was scheduled to begin. Redflex Traffic Systems is being sued by its Arizona-based rival, American Traffic Solutions (ATS), on the grounds that the Melbourne-based firm won the recently canceled statewide speed camera contract with the Arizona Department of Public Safety (DPS) by allegedly lying about the certification of its equipment. If it loses, Redflex could be forced to pay its rival millions in potential damages for lost business. Already, the company’s overall legal defense bill has reached $6.2 million for the past year.
Ever since the late 90s, car manufacturers and especially car dealers were scared of the Internet. By the end of the 90s, it was agreed that the likes of Carpoint or Autobytel would turn into huge virtual showrooms and would put dealers out of business. It didn’t happen. The opposite happened. The many car shopping sites drove business to dealers. Ten years later, there it is again: The specter of the wicked disintermediation has returned. Direct sales to customers via electronic media are popping up in the world’s largest auto market. (Read More…)
Talk about timing: While Trans Sec LaHood was in Japan yesterday, ostensibly to look a trainsets, while he toured Toyota instead and uttered dark “time will tell” threats, while he said that his people are still working on the evidence for a second $16.4m federal fine, back in Washington, the timer was set for yet another ticking 16.4 mega-tonne bomb. (Read More…)
From Ferrari’s manual-free pledge to BMW’s move to front-wheel-drive, the auto industry is breaking down formerly untouchable barriers left and right. The latest: longtime four-wheel-drive specialist Land Rover will build a front-drive version of its forthcoming compact “SUV Coupe” known as the LRX. The new model, which debuts at this fall’s Paris Auto Show, will generally be available with all-wheel-drive, but after launch a front-drive base version will become available. Though Landie had previously foresworn FWD models as being incompatible with the brand’s values, there’s been a change of heart and according to Autocar, the Tata Motors-owned marque
cannot ignore the growth of the two-wheel-drive SUV segment
There’s been no word thus far about the LRX’s availability in the US, but if it does arrive stateside don’t expect FWD versions to be imported. And don’t expect the LRX codename to grace its rear deck either: five names are said to be under consideration for the model, one of which is “Land Rover Compact” and none of which is “LRX.”
With strong new auto safety legislation being debated in congress,the role and scope of government regulation in the auto industry is becoming a hotly-contested issue. But one important consideration is being left out of the discussion: the role of private “regulation” of the auto industry. Even as the new legislation was being drafted, we were treated to an object lesson in non-governmental regulation when the non-profit Consumer Reports issued a “do not buy” warning for the Lexus GX after it exhibited lift-off oversteer on a test course. Because CR performs independent testing on a wide variety of dealer-example vehicles, it was able to detect this error, which prompted Toyota to stop sales and production of the model until a fix was released. Throughout the incident, NHTSA played second fiddle to CR, merely checking the non-profit’s work. The lesson: a subscriber-based, non-profit is the real front line of US auto regulation. But, as the Wall Street Journal [sub] reports, Consumer Reports is being shadowed by another organization called Consumers Digest… and you don’t want to make the mistake of confusing the one with the other.
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