Saturn? Civic? Neon? A diesel owned by Chuck Goolsbee? For the longest time I’ve been trying to figure out what penny pinching prodigy earns the most keep. I’ve spent years pondering this question. Well, more like a few dull moments at the auctions. I finally figured out the answer this evening. The cheapest car to own is the one you like so much… that you’re willing to buy another one just like it so that you can keep yours on the road for years to come. I’ll give you a recent example of two ‘cheap’ cars with two very divergent destinies.
Yes, GM’s “core brands” Chevy, Buick, GMC and Cadillac combined for a 25 percent improvement over their Cash-4-Clunker-fueled July 2009 performance, although The General moved so many Pontiacs and Saturns during July of ’09 that overall sales were up only an anemic 5.5 percent. Because C4C boosted sales of value-oriented models last July, Chevrolet was up a mere 12 percent, while GMC was up 27.2 percent. The big gains in year-over-year volume came from Buick and Cadillac, which 136 and 141 percent combined. In short, every year-over-year number we’re looking at has been deeply skewed by last year’s C4C program, meaning volume numbers and month-to-month numbers will be the keys to properly analyzing this month’s sales results. (Read More…)
Is this the turn-around? Dead cat bounce? Unloading of 2010 inventory? July US new car sales are a closely watched indicator. The following table lists July sales reported by Automotive News [sub]. Watch this spot for all numbers as they come in during the day. (Read More…)
China’s red-hot growth numbers are coming down to earth. Which doesn’t mean that the Chinese are stopping to buy cars. We are now getting into a territory where previous year sales increases were so insane that any more outrageous growth would simply be certifiable. In July 2009, sales in China had exploded by 70 percent. A month later, in August 2009, sales nearly doubled from a year earlier. Any growth that betters these numbers is amazing. (Read More…)
Sales numbers for the US market in July should drop today, and based on an early analyst survey, the market’s only recovered to a 12m SAAR at best. Estimates aside though, it’s beginning to look more and more like the US market for new cars is approaching a “new normal.” How so? Automotive News [sub]’s Jesse Snyder figures it’s
Because discipline is breaking out all over– at manufacturers, suppliers and dealerships.
Even Snyder’s headline captures the mood of cautious realism that’s suddenly taken hold of the auto industry: though the market appears to have moved towards 12m annual units in July, Snyder’s analysis is headlined Life at 11 million U.S. sales. (Read More…)
Good news for Chinese parts makers: Volkswagen, by far the biggest brand in China, wants to gradually achieve full localization in China. In regular English: Volkswagen’s Chinese joint ventures plan to locally source all auto parts and components needed to make cars in China, and will stop importing them. (Read More…)
Unlike a Texas appellate court, the Oregon Court of Appeals ruled last Wednesday that reaching one’s own driveway during a traffic stop can avoid more serious consequences. In November 2007, Officer Blood of the Cornelius Police Department attempted to stop Richard Chaves Gonzales for a traffic violation. Gonzales was just two or three blocks from home, so he did not stop until he reached his own driveway. Blood wrote Gonzales a ticket for driving on a suspended license and began searching the car without a warrant after declaring that he was going to impound the vehicle. Blood insisted that the search was valid.
Official numbers for July sales in Germany are out now, and did we mention that the Verband der Importeure VDIK (German Association of Car Importers) is usually reliable? They said 237.500 cars in July. The official number, as reported by the Kraftfahrtbundesamt, is 237.428. The official drop is 30.2 percent. (Read More…)
Official numbers for July sales are not out yet (the Kraftfahrtbundesamt will report later today aor tomorrow), but Automobilwoche [sub] heard from the usually reliable Verband der Importeure VDIK (German Association of Car Importers) that new registrations dropped in July by 30 percent compared to July 2009. Germans bought 237.500 cars in July. This is bad, but not as bad as it sounds. (Read More…)
Great artists steal, and I’m obviously inspired by Paul Niedermeyer’s GM’s Deadly Sin series here. I am currently the owner of three Porsches, as pathetic as that may be, and I’ve experienced firsthand the many ways in which Porsche disappoints its fans and buyers. Few companies have been as comprehensively whitewashed by the media and the corporate biographers, but the truth is available to those of us who wish to look a bit harder.
We will start with the big betrayals, of course, and the unassuming fastback you see above represents perhaps the worst of Porsche’s many middle fingers to the customer base. It is a 1999 Porsche 911, known to everyone in the world as the “996”.
From 1964 to 1998, the 911 evolved on an incremental basis. As with the first and last Volkswagen Beetles, there are very, very few parts which survived the thirty-four-year journey unchanged, but there’s an amazing amount of interchangeability. It is possible to “update” a 1971 911T to look just like a 1998 Carrera 2S, and it’s also possible to “backdate” a 1994 911 Carrera to look like a classic 1973 Carrera RS. Both of these offenses against human decency have occurred many times, incidentally. Take a look here to see a rather lovely example of a “964” turned into a “long-hood” 911S, in a color that will be familiar to many TTAC readers.
[Editor’s note: In the absence of an official rebuttal to Edward Niedermeyer’s NY Times Op-Ed on the Chevrolet Volt, TTAC’s own Ken Elias has volunteered to come to the Volt’s defense.]
The Chevy Volt should be a brilliant piece of engineering achievement if it works as advertised. That’s a big “if” and I wouldn’t bet my life that GM’s first iteration of the car will live up to the hype. And that’s only because of the long string of overhyped vehicles that came out of the former GM that simply never delivered. But that’s three decades of history talking – and GM’s a new company today with a different mindset and competitive spirit. Its newest products – the LaCrosse, SRX, Equinox, and Camaro for example – have been well received by the public and there’s no shame putting one of these rigs in your driveway. So let’s start out giving GM the benefit of the big doubt that the new Volt will work as advertised.
When the New York Times asked me to write an editorial about the Chevrolet Volt, it never occurred to me that it would be published on the day that Barack Obama toured Michigan’s auto plants touting the success of the auto bailout. Because of this timing, however, my piece was apparently taken as a partisan attack on the White House… and it touched a nerve. How do I know? Because, according to the Washington Examiner, on the Air Force One flight back to Washington D.C., White House Press Secretary Robert Gibbs joined a proud tradition that dates back to at least my first year of kindergarten: he made a Niedermeyer-based funny.
“Did you guys ever see ‘Animal House?’ Right?” Gibbs asked reporters on Air Force One. “Remember when they go, ‘Neidermeyer dead?’ I’d say his argument is largely there.”
I always feel a little trepidation about abandoning the internet for a weekend in order to focus on a new car review (2011 Jetta, coming soon), but never in my most paranoid moments did I imagine that I’d come back to find the White House press secretary comparing me to the villain of Animal House.
Your humble editor will be appearing on America’s Nightly Scoreboard on the Fox Business channel today at 7:30 PM Eastern (4:30 PM Pacific) to discuss my NY Times Op-Ed on the Chevrolet Volt.
Yesterday, I wrote about how GM had beaten the French and made them concede benefits in return for job security. Well, it seems that the French got their own back on GM in a round about sort of way. Bloomberg reports that Opel sales in France dropped a massive 30 percent to 6,462 units in July. This doesn’t bode well for Nick Reilly, head of GM’s European division, as he tries to make Opel attractive enough for the corporate mothership to finance a turnaround with American taxpayers’ money. Shall we take a closer look at the French sales figures…? (Read More…)
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