As non-executive vice-chairman of the Swiss bank UBS, Chrysler CEO Sergio Marchionne has deep connections with the European banking community. Now, under threat of losing its primary lender Ally Financial to GM’s dreams of a return to in-house, subprime lending, Marchionne has leveraged that experience into a non-prime lending deal with a US division of Spain’s Banco Santander. Automotive News [sub] reports that Santander and Chrysler have reached a deal to provide loans to Chrysler customers with sub-650 credit scores that ChryCo reckons could result in an additional 2,000 sales each month.
(Read More…)

GM’s OnStar division is preparing for a big push into new info-tainment and connectivity services, and it’s launching the effort at Google’s I/O conference starting tomorrow. First up is a new Google-maps-based navigation feature for Android phones running the Chevy Volt mobile app, featured in the video above [presser here]. Though this new navigation system won’t be available at launch, but will emerge in a 2.0 version of the Volt mobile app, it hints at a new direction for OnStar, which traditionally markets itself as a safety feature. A senior (anonymous, sorry) source at GM took a moment to explain where this is all heading….
(Read More…)

Honda’s decision to delay a redesign of its Civic piqued some curiosity amongst our Best & Brightest, particularly Mark MacInnis who requested a five-year sales chart on the Civic and a few competitors. We’ve gone one better and worked up a 15-year graph of sales volume for some of the more popular compact sedans in the US. Of course a significant number of those pre-2001 Civics were hatchbacks, and Toyota counts its Matrix hatch as a Corolla, so the numbers are just a little skewed. Still, it gives a fairly good sense of where the major players stand in this important segment.

I received a love note from (former TTAC scribe) Frank Williams that was more than a little irk-inspiring.  Frank still reads AutoWeek, but that’s not a big deal: he noticed that Senior Editor Mark Vaughn’s column on the print rag is called “Piston Slap.” Or to put it in his own words:

“I don’t know how long he’s been using it, because this is just bathroom reading material that I toss as soon as I finish so I don’t have any back issues to look at.  However, I’ll bet your use of the title predates his.  Sounds like the making of a snarky blog to me.”

(Read More…)

The race for the Republican nomination for Alabama governor grew heated last week as a leading candidate faced questions over his involvement in a toll road deal. Tim James, 48, is running for the nod as a leading businessman and the son of former Governor Fob James, Jr. His opponent, Bradley Byrne, 55, is a former state senator and chancellor of the Alabama College System. Byrne and James traded verbal blows over the Foley Beach Express, a 13.5-mile four-lane route from the city of Foley to Orange Beach meant to bypass the congested Highway 59 for those willing to pay a $3.50 toll.

(Read More…)

At the Beijing Auto Show, they had a fine-looking and well-appointed Buick MPV, called the “Business Concept” (shown above.) I gave it no mention. After all, who cares about a concept MPV that will never see the light? Big mistake, Schmitt: It will see the light faster that I thought, namely by the end of the year.

(Read More…)

You think U.S. car makers suffer from brand confusion? Come to China! China’s Chery for instance is known for their low-cost cars, especially for their ubiquitous el cheapo QQ. In order to venture into more upscale segments, Chery launched a number of brands, amongst them Rely (for SUVs, get it?), Karry (for minivans and pick-ups, get it?) and Riich (for upscale models, get it?) Now, the confusion starts. (Read More…)

As Americans have noted, bailouts can get costly. Europe has just decided on a trillion dollar bailout for their southern European deadbeats member states. Who’s going to pay for all that? In Germany, raising taxes is taboo (for the moment.) Lowering taxes had been one of the wedding vows of the ruling coalition. They didn’t say exactly when, but raising taxes would be politically – not very smart. So how else to raise money? Where else than from our darling piggy bank, the hapless motorist. (Read More…)

5 years ago, disturbing news reached Germany. A Chinese company called Jiangling had the nerve to disturb the peace of the Frankfurt Motor Show IAA by displaying a Chinese SUV, with the intent to sell the vehicle. With dispatch, a crash test was arranged by the ADAC, the German equivalent of the AAA. The car failed miserably, the video became a hit on Youtube, and turned into an example for all that’s wrong with Chinese cars. Landwind was done. Never mind that rumors wouldn’t die that ADAC’s Landwind test had used, shall we say, “enhanced techniques.” Never mind that Germany’s TÜV, the company that officially tests cars for the German government, tested the car later and certified that it met all mandatory safety criteria. Never mind that the ADAC has a sometimes incestuous relationship with German auto makers. Landwind was destroyed, the first attempt to invest European soil with Chinese cars was repulsed. Later, ADAC did the same to Brilliance, again under questionable circumstances, again with the predictable results: Brilliance was dead, had to leave Europe. Well, Brilliance is coming back. And so does Landwind. (Read More…)

Sadly, my internet came crashing around my ears just as GM’s Q1 results conference call was getting interesting. Typical Monday. I’ll rock myself to sleep tonight with a recording of the call and report back tomorrow, but at this point the big news is plainly visible on this single slide. Yes, GM finally got control of its incentives and wrestled them below the industry average… for a month. That month (March) also just happened to be the worst month this year for GM market-share wise. The next month (April), the incentives went back over the industry average, and market share increased once again. The lesson seems obvious: GM won’t gain market share on promises of high-quality cars and taxpayer payback alone.

(Read More…)

Honda hasn’t always replaced its bread-and-butter compact, the Civic, every five years. The Mk.1 Civic soldiered from 1972 until 1979. The second through fifth generations were replaced on a regular four-year schedule, before Honda settled into a five-year product cadence with the sixth generation (1996-2000). If it were to keep with that cadence, we’d be seeing a ninth-generation Civic sometime this year, replacing the Mk.VIII, which debuted in late 2005. According to Automotive News [sub], however, Honda is holding off on releasing a new Civic until 2011. What gives?

(Read More…)

As I exit Turn Eleven at Summit Point Raceway’s twisty, concrete-lined “Shenandoah” course, I’m confronted with a rare opportunity to put my money where my mouth has been. In a review of the 2011 Mustang GT 5.0, I perhaps foolishly opined that “C5 Z06 pilots will need to find a twisty road lest they be […]

What, you want more context from a headline? It’s not like we’ve lied to you or anything. Technically, every word of it is true. OK, OK, here’s the fine print: CGI Holding, owners of “Old Chrysler” and Chrysler Financial paid $1.9b of a $4b pre-bankruptcy TARP loan, according to Automotive News [sub]. Though far less than face value, that payback “is significantly more” than what Treasury was expecting in return. In other words, this is great news if you thought the bailout would be a complete loss. Otherwise, it means that the various remains of Chrysler have repaid $3.9b of the $14.3 invested by taxpayers into the company pre-bankruptcy… and unless Chrysler’s IPO brings in about $100b, Treasury will still take a bath on the rescue.

(Read More…)

When we first heard that GM was eying a return to in-house financing, our first reaction was to worry that

the potential for falling back into old bad habits can’t be ignored.

Clearly our concern wasn’t wasted, as the AP [via Google] reports that The General’s major motivation for considering re-creating a captive lender is to chase subprime business its current major lender won’t touch. And considering that that lender is GM’s bailed-out former captive finance lender GMAC (now Ally Financial), which was badly burned by subprime mortgages, it’s not surprising that GM is frustrated by GMAC’s tentative approach. But should The General charge into the low-standard lending sectors where Ally fears to tread?

(Read More…)



John writes:

Hello: I have a question about a 2003 Toyota Camry with 130,000 miles. Every time I get the oil changed the attendant comes out with a clipboard and a long list of items needed to be done. Such as flush the engine oil, flush the power steering fluid, start using high mileage oil etc. Should I do this? So far I have not given in as the car runs good and it’s paid for.

(Read More…)