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By on May 10, 2011

 

The eyes were covered in a yellowish puss-like film. Jaundice? Nope, bad seals from the factory had made the headlights brittle and useless. Almost like old fly paper but without the elasticity. The leather seats up front were all cracked and peeling. Rear speakers were out. The alarm system had a mind of it’s own. Spontaneously singing it’s praises whenever there was a rare dull moment on the lot. But the kicker?

It’s the most popular car in my fleet. Teenagers, old(ish) hell-raisers. Even folks with the proverbial mid-life crisis without the means of a Vette want this car. I had six interested buyers within two hours. Meanwhile the minivans are molderizing in their appliance like utility. During tax time the “popular” cars can have price premiums as high as Cheech and Chong’s “Nice Dreams.” So this is what I did.

(Read More…)

By on May 10, 2011

President Obama devoted his weekly address to energy and transportation policy this week, speaking to the nation from an Allison hybrid bus transmission plant in Indiana. A White House blog post accompanying video of the President’s speech included a large infographic on “The Obama Energy Agenda And Gas Prices,” the transportation-oriented section I’ve excerpted above. This one section is actually a fairly good representation of Obama’s auto-related energy policy preferences, and illustrates why I often find myself criticizing the president here at TTAC.

(Read More…)

By on May 10, 2011

This video is now almost exactly two years old, depicting what was likely a relatively early test of the next-generation Porsche 911 (codename:991). Wait for the GTR to come by and a hardtop test mule bearing the Turbo-style side vent decals that identify 991 test mules barrels through the corner before gathering everything up with a well-controlled drift on the exit. It may not break the Clarkson-meter (what do we give it, B&B… maybe 3.5 Clarkson-units?) but it’s not a bad little bit of ass-outery for a test mule. And for comparison, the very latest spy videos of 991 mules (after the jump) show far more poise in fast corners. After all, Porsche doesn’t want to revisit its reputation for tail-happy antics after working so hard (too hard, some might say) to dial out its rear-engine tendencies.
(Read More…)

By on May 10, 2011

Honda’s latest Civic may not have made a great impression on TTAC’s Best and Brightest, but the new compact isn’t targeting any one buyer anyway. As theinspirationroom.com reports [click through for new ad videos], Honda’s new Civic campaign is all about broadening the model’s appeal… to five specific stereotypes.

The campaign features five distinct characters, each representing a different model. The Urban Woodsman, Jack, lives in the city but is at home in the woods. He likes his Hybrid for its great fuel efficiency, which comes in handy on his many trips to the great outdoors. The Zombie, Mitch, is a salesman who’s into high-tech gadgets. His Civic Sedan is loaded with options like Bluetooth HandsFreeLink and navigation system with FM Traffic. The Monster, Teeny, is a bubbly and studious college coed. Her practical nature and frugal budget align with the fuel-efficient HF model. The Ninja, Aiko, is cute, innocent and deadly. A martial-arts phenom who’s partial to red licorice and arcade games, she pairs well with the high-energy performance of the Si model. Cesar, the Champion Luchador, is somewhat of a celebrity. He’s handsome, charming and a bit vain so he, of course, appreciates the Civic Coupe’s sleek lines.

Of course, Honda never needed this kind of segmentation silliness (which reeks of the “brand central studios” that Bob Lutz rips in his new book) in order to make its Civic one of the best-selling nameplates in the US market. Meanwhile, the requisite price of this kind of “personality profiling” is that the mass market “profile” (i.e. the people who buy the majority of Civics) gets a short shrift compared to the smaller but sexier niche profiles. As a result, Honda signals that it sees the bulk of Civic buyers as “zombies,” with no distinguishing characteristics besides a vague affinity for tech toys. Compare this to the legendary tagline “you meet the nicest people on a Honda,” and you’ll begin to get a sense of how far Honda’s marketing has fallen in recent years…

By on May 10, 2011

One of Bertel and my favorite Chinese car blogs, ChinaCarNews, has been reporting since October than the next-generation of MG/Roewe midsized sedans would be based on GM’s Global Midsized (Epsilon II) chassis (which underpins Buick LaCrosse/Regal and the new Chevy Malibu), and now the rest of the media appears to be catching up. From InsideLine to Autocar, everyone’s running with the story that MG/Roewe, which is owned by GM’s main Chinese partner SAIC, is working on an Epsi II-based MG7 for launch in the 2015 timeframe. According to InsideLine

[In 2015], the MG7/Roewe 750 sedan replacement appears some 15 years after the debut of the Rover 75 they’re based on. A coupelike four-door, it uses GM’s Epsilon platform and will be powered by 2.0 and 2.4 four-cylinder gasoline engines and a 1.9 diesel, all with dual-clutch transmissions.

GM and SAIC signed a Memorandum Of Understanding back in October [.DOC file here], which included the provision that, in addition to developing a next-gen electric architecture,

SAIC and GM anticipate sharing an additional vehicle architecture and powertrain application in an effort to help reduce development costs and benefit from economies of scale.

This could explain MG/Roewe’s rumored use of the Epsilon II chassis, but for the moment GM dismisses these rumors as “speculation.” And no wonder: even GM hasn’t announced when it will offer a dual-clutch transmission in its Global Midsized platform. Chances are, The General will want to offer that combination before its Chinese partners use it to beef up its MG/Roewe brands, which have been in product rehab for some time now.

By on May 10, 2011

Detroit’s brand managers, particularly those at the resurgent premium and luxury brands, have made West Coast sales a high priority as they seek to bring new buyers into once-moribund brands like Buick and Cadillac. California, in particular, is a huge market for luxury and premium cars, and it’s generally an edgier, more youthful market that has long shunned domestic offerings. Everything from “lifestyle events” to no-cost hybrid drivetrain options on Lincoln MKZ have been introduced in an effort to get California’s copious yuppie population interested in Detroit luxury, but the results just haven’t shown up yet. According to Ford’s Mark “MKF” Fields [via AN [sub]], only about 25% of MKZ buyers were tempted by the free-hybrid deal in March, and meanwhile, the San Francisco Chronicle reports that the Golden Gate City has just lost its final domestic auto dealership, a Ford/Lincoln store. Detroit may be California dreaming, but the Buicks and Lincolns of the world are still a long way from gaining ground in the West Coast.

(Read More…)

By on May 10, 2011

Saab has started paying suppliers again (although production hasn’t restarted yet), and CEO Victor Muller is once again all popped-collar confidence as he dismisses the “speed bump” that he blames on negative publicity. But behind Mueller’s yacht-club breeziness and talk of “true Saabs,” major changes are afoot in Saab’s business model. Saab’s deal with Hawtai, the product of a desperate search for support in the midst of a liquidity crisis, has changed how Muller sees the global car business, and as a result he’s shopping what may be Saab’s last meaningful asset: Western dealerships. Muller explains his thinking to Automotive News [sub]

We laughed when the Japanese came. We laughed when the Koreans came. But we will not be laughing when the Chinese come. The Chinese are like a steamroller. It took 67 years to build up our dealer network. It is the biggest asset not on our asset sheet, and these guys buy into it for free. If they make the proper cars, can you image how much simpler it will be to push product through the distribution network that is already there? It is like a railway network that is already there.

Bertel and I have a running bet about whether the first actual Chinese import to the US (not a converted glider) will be a Chinese brand or one of the western brands… but it’s not much of a bet because neither of us can ever commit to picking one brand that seems most likely to bust America’s Chinese car cherry, and our “bets” change on a weekly basis. In any case, though, think it’s safe to say that neither of us saw Saab as playing much of a role in any of the scenarios we’ve discussed.

(Read More…)

By on May 10, 2011


Robert™ (yes, really) writes,

Sajeev & Steve:

Even in Seattle, it’s springtime and for the first time in a decade I find myself without either a woman or a convertible in my life. The woman’s best not replaced too quickly, but going a summer without a convertible is a sacrilege I’m unwilling to commit. I’ve gone through my finances, and about $25K – $27K is my price range. I know I’m buying at the wrong time; both because it’s spring and because the supply-side guys are winning, but spending a summer without going topless just feels … dirty.

(Read More…)

By on May 10, 2011

Mazda may be free from its less-than-entirely-successful relationship with Ford, but when it comes to US production, Mazda is still very much stuck in its Ford-dependent past. B-Series pickup production has ended in St Paul, but Tribute is still built alongside Escape in Kansas City (for the moment), and the majority of Mazda’s US production is still accounted for by Mazda6, which is also built alongside Fords at the shared Flat Rock “Auto Alliance” plant. But AutoWeek‘s Hans Greiml reports that the Nikkan Kogyo newspaper believes Mazda could be looking to pull out from Flat Rock.

the Mazda6 is a big reason Mazda can’t turn a regional operating profit in North America–one of its most important markets.

The company planned to produce 100,000 Mazda6 units annually at the Flat Rock, Mich., plant, when the redesigned sedan was launched there in mid-2008. Then the financial crisis hit.

Last year the plant built only 45,168 units.

Mazda is cagey about what options it is mulling. If it quits producing the Mazda6, it could bring in another vehicle–or Mazda could quit the plant completely. Speculation abounds in Japan that Mazda is eyeing a new, lower cost North American production base in Mexico.

With the Tribute going out of production by the end of the year, Flat Rock would be Mazda’s last remaining US production facility. But while moving production from Flat Rock to Mexico might be a solid strategic move, it won’t change the Mazda6’s underperformance in the market. That’s going to take at least a “Mazda-rati” redesign. Hit the jump for a graph of Mazda’s midsized sales performance since 1995.
By on May 10, 2011

 

Honda revealed prices for their „Chinese Brand“  Everus S1.  As reported before, these “Chinese brands” are brands created by joint ventures, based on (usually not the latest) foreign platforms, filled with parts of foreign pedigree, and as much Chinese manufacture as possible. Supposedly, these brands are targeted at the lower income brackets. They better start saving. When the concept was launched, the target price for the cars was under $10,000, but what is going on sale is consistently over that. (Read More…)

By on May 10, 2011

Speaking your mind to a police officer during a traffic stop is not free speech, according to the Tenth Circuit US Court of Appeals. A three-judge panel ruled Thursday that Colorado Springs, Colorado Police Officer Duaine Peters did nothing wrong in having Miriam Leverington fired from her job as a nurse at Memorial Health System for talking back after he wrote her a speeding citation.

(Read More…)

By on May 10, 2011

 

Our patent pending GM China sales oracle saw it coming: GM China was down in April, therefore, the whole Chinese market had to be down in April. And so it was – by a hair: April new vehicle sales in China were down 0.25 percent, the China Association of Automobile Manufacturers announced at a press conference on Tuesday afternoon. This is the first decline in 27 months. (Read More…)

By on May 10, 2011

 

Remember the first auto part that had been in short supply after the March 11 tsunami? It was car paint. Certain car paint that uses a shiny pigment called Xirallic, to be exact. That will also be one of the first Japanese parts that will move elsewhere as a result of the disaster. Germany’s  Merck said today it will shift production of Xirallic pigments from Japan to Germany. (Read More…)

By on May 10, 2011

‘Tis the season when Japanese companies publish annual results. They all work on a fiscal year that runs from April 1 through March 31. Then, they need a good month to count the beans, to be ready in mid May. Suzuki was first to announce, and the announcement was good: (Read More…)

By on May 10, 2011

While Michigan Senators, aided by the Detroit News, are chasing their own tails complaining about Chinese EV draft regulations that only exist in rumor form, a major European manufacturer practices Realpolitik and covers all possible bases: Volkswagen appears to launch an indigenous, all-electric brand for China, and (at least for the time being), for China only. (Read More…)

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