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By on May 17, 2011

Does that headline seem ripped from the pages of TTAC’s 2008-2009 headlines, or what? But really, who’s shocked? Chrysler spent early 2009 trying to convince the government that it was worth a (second) taxpayer-funded second chance, and now that it’s looking for a private-sector bailout in order to escape the terms of its publicly-funded bailout, Chrysler’s still got some ‘splaining to do. The DetN reports:

Chrysler Group LLC does not intend to speed up plans for new cars despite media reports that investors see a high degree of risk in an automaker that has been so dependent on truck sales…

“Nothing has changed from the five-year plan,” [Chrysler Group VP of Design and Dodge boss Ralph Gilles] said.

New small and midsize cars for Chrysler, engineered by Fiat, “are coming strong and heavy,” Gilles told reporters following a speech. “There is no need to speed up.”

Now, nobody would suggest that Chrysler should mess with its product timing simply to please some bankers. If it’s even remotely possible to hurry new products to launch without cutting serious corners, Chrysler should/would be doing it anyway (ask Sergio). Still, Gilles’ “nothing has changed” sound bite isn’t exactly true.

(Read More…)

By on May 17, 2011

When I was a kid I was told that by the time I was 30 we would all be piloting nuclear powered flying cars. Reality, of course, has dictated that gasoline is still the most cost effective way of delivering what the average person considers a “normal driving experience.” In an attempt to change not […]

By on May 17, 2011

Why do consumers like CAFE? Well, the short answer is that a gas tax (which is infinitely superior from a pure policy perspective) hits them directly in the pocketbook, while CAFE forces automakers to absorb the cost increases before passing them along to consumers in the form of higher MSRPs. But underlying this fact is a larger issue that’s driving support of increased emissions regulation: gas is getting more expensive. As I pointed out in my recent editorial on the subject, for all the automakers’ whining about CAFE increases, it seems that energy prices are moving the market in the same direction anyway (the average family will spend $3,100 on gasoline this year).

According to a Consumer Federation of America study [PDF], the steadily-rising price of energy has consumer’s even more concerned about gas prices and dependence on the volatile Middle East than they were during the height of the last fuel price shock in the Summer of 2008. As a result, support for a 60 MPG fuel economy standard doesn’t go below 49% (among Independents) even assuming a ten-year payback period, and earns the support of 63% of Democrats. And before you dismiss this support as hysteria, consider the underlying economics for a moment…

(Read More…)

By on May 17, 2011

“Due to our proximity to the nuclear power plant in Fukushima, in the beginning, some suppliers and some contractors had problems coming to the plant because there was that uncertainty of radiation,” says Nissan CEO Carlos Ghosn today, standing in front of the final assembly station of Nissan V6 engines made in their plant in Iwaki. That plant indeed is only some 60 miles from the Fukushima power plant, and that’s where we are today.

(Read More…)

By on May 17, 2011

Most Americans depend heavily on their license to drive – for their jobs, their family obligations and their recreational travel.

Naturally, some of our driving needs take us out of state. And as is well-known, traffic enforcement tends to focus on out-of-state drivers – maybe because it is that much harder for drivers to successfully contest out-of-state tickets…?

Compounding this problem is the fact that out-of-state violations almost inevitably impact the home-state driver’s license, sometimes even resulting in suspensions. And if out-of-state tickets are hard to contest, then clearing up interstate licensing actions can be nearly impossible.

In the nanny state’s never-ending battle to completely eliminate all driving risk, and its corresponding effort to make sure that every bit of your traffic record is available to every enforcement agency in the land, several compacts have been set up between the states for the sharing of motorists’ driving offense information.

This might be a good thing, if all transportation departments had fair, clear, and consistent rules and procedures for how out-of-state violations should impact home-state license privileges – and those agencies took responsibility for treating motorists fairly when problems arise.

The reality, though, is that such situations lead to vicious circles where neither the bureaucracy of the ticketing state nor the home state is willing to step up and unilaterally correct problems. (Read More…)

By on May 17, 2011

Who’s the most efficient automaker of them all? According to TrueCar’s projections for May, Smart, MINI, Hyundai, VW and Scion top the list for sales-weighted fleet fuel economy. Meanwhile, the industry average of 22.4 MPG might not sound like much, but when you convert it to the “unadjusted” numbers used for CAFE, that 22 MP turns into about 28 MPG. Considering the 2015 CAFE standard is 35.5 MPG between cars and trucks, that average shows the industry to be fairly well on-track to comply with the initial CAFE ramp-up. In fact, since 35.5. MPG CAFE equals about 27 MPG EPA, it seems that the top three brands on this list (Smart, MINI, Hyundai) can pretty much twiddle their thumbs between now and 2015, as they’re practically in compliance with the 35.5 MPG standard already.

By on May 17, 2011

Today’s sign of the times comes courtesy of the world of social media, and calls into question some of our most basic assumptions about the world of cars. France, it seems, experienced a 12.8% increase in on-road fatalities in the first quarter of this year, and the New York Times reports that the French government is responding by banning devices that scan the road ahead for speed camera radar waves.

A decade ago, the death rate on French roads was among the worst in Europe, and the government reacted in 2002 with what some drivers called repressive tactics. Radar cameras were erected at intersections throughout the country, which captured a motorist’s license plate if the car surpassed the speed limit by more than 5 kilometers an hour (3 m.p.h.), deducted points off a motorist’s license and sent a fine through the mail.

The measures were deemed successful. The International Transport Forum said France achieved a reduction of 47 percent in its road-death toll in the first decade of the century, relative to the 1990s. The ministerial report said the average speed in France also dropped 10 kilometers an hour since 2002, or 11.7 percent.

The radar cameras, however, spawned a thriving market in radar-warning devices. According to AFFTAC, 5.1 million drivers in France use them. Under the new law, users would face fines of up to 1,500 euros, or about $2,100.

The French government’s decision to not only ban radar detectors, but also to remove signs warning motorists of fixed radar cameras has generated some serious backlash. Apparently over 80,000 people “liked” the Facebook page of AFFTAC, a group opposing the measures and calling for nationwide protests, over the course of two days. By comparison, the most optimistic count of hand-raisers for a possible future Chevy El Camino is “possibly as high as 18,000 people.” Call us crazy, but we thought America’s oft-cited “love affair with the automobile” would have created some slightly different results.

By on May 17, 2011

TTAC reader civicguy writes:

My wife and I currently own an 04 Honda Civic EX (mine) sedan and an 03 Honda CR-V LX (hers). We have two Golden Retrievers who travel with us a lot to visit family, etc and we are expecting our first child this March and probably another child while we are driving this new car. This means we are running out of space and need something big, compared to the CR-V at least.

(Read More…)

By on May 17, 2011


Despite deep skepticism about the value of Saab’s latest “alliance” with the Chinese dealer group PangDa, it seems that the Swedish automaker will restart production next Wednesday. SaabsUnited translates a DI.se report

“I expect the plant to begin production on Wednesday of next week since they’ve come to the Saab on Tuesday this week,” said Gunnar Brunius, Purchasing and Production Manager at Saab Automobile to DI.

On Tuesday, he initiates the process of agreeing with Saab’s 800 suppliers so that they start to deliver the components again after a six-week shutdowns.

The major suppliers, including IAC, Sweden, Plastal and car seat manufacturer Lear, are invited to personal meetings, while many other contacts are handled through e-mail.

Saab will reportedly restart production at a rate of 230-240 cars per day, but first it will have to pay off suppliers. We’ll see if that actually gets accomplished before we take this report too seriously, especially since CEO Victor Muller has admitted that negotiations with suppliers could take “several weeks.” But, Muller tells Saab employees that “we will never give up,” so who knows how long Saab’s death throes could last.

By on May 17, 2011

Yesterday we gave GM kudos for addressing its lingering vehicle weight issues by redesigning the head of its popular 3.6 liter V6, and shedding 13 lbs in the process. It was, we noted, the kind of news that showed GM is staying focused on the nitty-gritty of product development, sweating the details. But, according to a fascinating piece by GMInsideNews, new-product development at GM still has its issues. Specifically, Cadillac’s development of a new BMW 3-Series fighter, known as ATS after its “Alpha” Platform, has faced more than its fair share of what GMI calls “drama.”

Turf battles, unnecessary “wants” on checklists and ultimately a severe case of “Mission Creep” have created a vehicle that now needs a crash diet, according to GMI’s sources both within GM and at suppliers working on the Alpha/ATS program. For a vehicle that’s taking on an institution like the BMW Dreier (not to mention costing a billion dollars to develop), these are troubling signs indeed.
(Read More…)

By on May 17, 2011

A study released earlier this month by the Cascade Policy Institute questioned whether pricey mass transit options in Portland, Oregon are really being used by the public. The city has been a leader in securing funding for various forms of passenger rail and trolley systems. The Obama administration, for example, pledged $745 million in federal gas tax dollars to pay for the construction of a $1.5 billion, 7.3 mile light rail project connecting Portland to Milwaukie. Transportation Secretary Ray LaHood has singled out the city’s priorities as for praise.

“By adding innovative transit opportunities, Portland has become a model livable community, a city where public transportation brings housing closer to jobs, schools, and essential services,” LaHood wrote in March.

(Read More…)

By on May 16, 2011

Ford’s arduous Lincoln turnaround is having another one of those awkward moments, as Ford and its dealers seem to once again be at odds about how to go about fixing Lincoln. And though it’s tough to tell what exactly is going on in Ford’s fandango with Lincoln dealers, it’s easy to see that it ain’t good. For starters, last week, Automotive News [sub] ran a blog item that noted

In just a few weeks, a group of Lincoln dealers will converge on Detroit for an invitation-only brand meeting with Ford Motor Co.

Mark Fields, Ford’s president of the Americas, promises that the meeting in early June will spell out some specifics about Ford’s plan to reignite its luxury brand.

But some dealers have put their invitations in the round file.

One says he won’t “waste” his money on airfare, adding that when Ford has “actual future product to show us, then I’ll go meet with them.”

One Lincoln dealer with a stand-alone store did not get an invitation, but he doesn’t care.

So, clearly things don’t sound happy in Lincoln Land. And what does Ford have to say to the non-attending and uninvited dealers? Ford’s Alan Mulally personally delivered a response the next day at Ford’s annual shareholder’s meeting…

(Read More…)

By on May 16, 2011

The Porsche Panamera: should it exist? Eight years after the introduction of the Cayenne SUV, many enthusiasts remain steadfast in their conviction that Porsche should stick to sports cars with aft-mounted powerplants. While a two-ton four-door is certainly a lesser evil, has Porsche managed to offer one for which there is no available substitute? A […]

By on May 16, 2011

Some folks say that stupidity is doing the same thing over and over again and expecting a different result.

Well, those folks have never been to an auto auction. Today we had over 95 dealers doing the same thing over and over again. Looking at a vehicle. Bidding it up to the nether-regions. Hoping that profit will come back via retail or buy here pay-here. Carmax has cutthroat middle-fingered competition at their dealer auctions and the prices reflect the screwing mentality that will likely be passed onto the bad credit consumer.

(Read More…)

By on May 16, 2011

One of the most consistent and valid criticisms of GM’s product development, even in the post-Lutz era, is the class-leading weight that so many new GM products carry around with them. To a number of industry observers, the lingering weight problem that so many of GM’s cars struggle with is a sign of corners cut in the design process. GM’s cars may look, feel and drive better than they did five, let alone ten, years ago, but clearly the battle for truly “world class” products isn’t over.

And now we’re getting some of the first indications that GM is taking the weight issue seriously, as GreenCarCongress reports that GM’s engineers have pulled 13 lbs out of its 3.6 liter direct-injected V6 simply by redesigning its head. Given that the 3.6 is already one of GM’s better engines, and is used in a huge number of its vehicles, that’s a solid first step as The General takes on the battle of the bulge.

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