While Fiat-Chrysler revives its Lancia brand by rebadging new Chrysler models with few other modifications, it’s attacking Maserati’s aging product lineup with a similar but more subtle strategy. Automotive News [sub] reports that the current Quattroporte has a problem

The car is too big to be a compelling driver’s car, but too small – particularly in terms of rear legroom – to serve as a good chauffeur’s car.

Luckily, according to the report, there’s an easy solution:

The problem will be resolved by offering two cars – a “baby” Quattroporte, code-named M157 and a larger Quattroporte, code-named M156.

The new flagship model will continue to use a Ferrari-sourced V8, and presumably an evolution of the current model’s underpinnings, extended by 70 mm to 5170 mm, or 203 inches… about the length of the forthcoming Cadillac XTS. The smaller version, on the other hand, is going to be a case study in the ever-evolving art of balancing shared components and premium differentiation.

(Read More…)

The announcement of President Obama’s proposed 54.5 MPG 2025 CAFE standard was hailed nearly unanimously today in a ceremony attended by many auto industry executives as well as government officials. Volkswagen and Daimler were conspicuous by their absence, as the Bloomberg quotes VeeDub spokesman Tony Cervone arguing

The proposal encourages manufacturers and customers to shift toward larger, less-efficient vehicles, defeating the goal of reduced greenhouse-gas emissions,

while Reuters notes Daimler’s response

Mercedes-Benz, the luxury car line owned by German car and truck maker Daimler, did not back the new program, saying it “clearly favors large SUVs and pickup trucks.”

“Our customers expect a range of vehicles from which to choose so this program creates a very real disconnect between government regulation and customer demand,” the carmaker said in a statement.

But are these concerns well-grounded? We don’t know yet, as the details of the proposal (specifically the loophole details) have not yet been released. Instead of publicizing the full rule, the White House released a report [PDF], highlighting the easy-to-like aspects of the proposed rule. But how easy-to-like is the standard really?

(Read More…)

In the Saab soap, it looks like Vladimir Antonov does no longer want to be invited back. Swedish Aftonbladet reports that “Vladimir Antonov is pissed” (at least that’s Google’s translation for “Vladimir Antonov är förbannad”) and is looking  into legal action against  Sweden’s Prime Minister Fredrik Reinfeldt, Finance Minister Anders Bork and Maud Olofsson, Minister for Enterprise and Energy. (Read More…)

I made my first fortune in Chrysler. Back in 1991 I bought 250 shares of the company at a mere $10 a share. It was all I had at the time and everyone in my family thought I was plain nuts. When it got to 12 I was a bit less nuts but definitely screwy. 15 and I was a lucky guy. It wasn’t until the stock hit $25 a share when they realize that if I had a knack for anything, it was following the auto industry.

By 1996 everyone and their dog was announcing the second coming of Chrysler. I sold my shares in late May 1996 at around $60 and bought the most safe and enduring investment of that time… a house. A lot of car companies have soared to the skies and plummeted to insolvency since then. My question for all of you today is…

Who’s next!

NOTE: Kia, Hyundai, Suzuki, Mitsubishi and Saab are yesterday’s news. I want your take on tomorrow’s Midas and minus.

SvD.se reports that would-be Saab rescuer Vladimir Antonov is considering legal action against the European Investment Bank and the Swedish Government, for keeping him out of an ownership stake at the failing Swedish automaker. Says Antonov

I have therefore decided to investigate the possibility of taking legal action, including but not limited to claims for damages, which may be of interest to various parties, including myself, the EIB, some officials at the EIB, the Swedish government and some government officials personally. By denying SWAN (Swedish Automobile) and Saab Automobile access to the funding that I offer, what these companies want and still desperately want, both the Bank and the Swedish government acted against all involved parties concerned, particularly against Saab and SWAN’s employees , suppliers, traders, lenders and shareholders

Antonov is reportedly investigating whether he can sue individual ministers of the Swedish government, while the ministers in question angrily deny that they are working against the interests of the Swedish auto industry. Meanwhile, far from calling for the overthrow of the government, the Swedish press is investigating Saab’s outlays for “management services” in recent years, and has found that CEO Victor Muller may be siphoning cash off to the tax haven of Curacao.
(Read More…)

Sorry for the delay on this one… Eight days ago, the New York Taxi and Limousine Commission approved the Ford Transit Connect for immediate use within NYC. Taxi-conscious TTAC readers will remember that this board rather controversially approved the Nissan NV200 as the Taxi Of Tomorrow a few months back. At the time, a source within Ford told me that “the battle isn’t over yet,” and this appears to be proof.

(Read More…)

When you talk to industry insiders about BMW, they most typically identify the brand’s great strength as it’s deep institutional knowledge about how to create satisfying road cars, an attribute that explains a lot of the brand’s previous conservatism about its product line. But expanding to include SUVs, hybrids and front-drive MINIs is one thing… starting a new brand as a completely clean sheet of paper, with hardly a trace of previous BMW technology, is quite another. And yet here they are: the i3 and the i8, the former of which launches in about two years. For a projected price of around €40k (BMW is also talking about car-sharing schemes), the i3 offers a 170 HP and 184 lb-ft of rear-drive electric power, wrapped up in an innovative construction concept that’s almost a throwback to body-on-frame (more like body-on-drivetrain) and is unique to the i brand. The whole thing is executed in carbon fiber reinforced plastic, hits 60 MPH in under 8 seconds, can reach 93 MPH and offers 80-100 miles of range. The i8 is further off, and is intended to be a four-door plug-in hybrid halo car, with a 5 second 0-60 time and front, rear or all-wheel-drive, depending on driving mode.

It’s all very Buck Rogers, like a set of Motorama cars of the future, and though the versions being shown now are called concepts, they’re supposed to be very, very close to the real thing. All we have to do now is wait, save our pennies and wait for the future to catch up.

Backers of ballot initiatives that would ban photo enforcement in a number of cities in Washington state are fighting back against municipal efforts to silence their vote. Traffic camera companies have become increasingly bold in their efforts to prevent the public from deciding whether red light cameras and speed cameras should be used in any given community.

American Traffic Solutions (ATS) scored its first victory in May when it found an activist judge in Chelan County willing to block residents from even filing a petition to their government regarding the use of traffic cameras in the community (read decision). Just days after the decision came down, the state supreme court discussed traffic camera initiatives, and several justices pointed out that blocking signature collection efforts would be a violation of the state constitution. Nonetheless, to bypass the legal blockade, initiative co-sponsor Matt Ericksonis circulating a second petition that schedules an advisory vote on taking down the cameras at every election until the devices are finally removed.
(Read More…)

The Japanese auto industry slowly but surely is clawing back from the abyss created by one of the worst disasters that were visited upon the island nation. Following the March 11 earthquake and tsunami, the industry had crashed. Three months later and earlier than thought, the industry is at near pre-disaster levels. Data released by the Japan Auto Manufacturers Association shows  the June production at 742,431 units, only 13.9 percent below June 2010. (Read More…)

Toyota is working on a small car based on its emerging market platform that underpins the Indian Etios, and will release it in China by 2013 – if  The Nikkei [sub] is correctly informed. There is nobody working at Toyota on Thursdays and Fridays as a power saving measure, so there is nobody to ask. We expect no more than the usual “we cannot comment on future models” when people will be back to work on Saturday. With that in mind, let’s go down rumor lane. (Read More…)

As we’ve already seen, BMW is building a record number of variants of its next-generation 3 Series, including “GT” hatchback and X4 “Sport Activity Coupe.” But as this photo shows, there is at least one other Dreier bodystyle that we hadn’t heard about yet: the long wheelbase sedan (top). Given the brand’s post-Bangle swing towards extreme styling consistency, the decision between a LWB 3 series and a 5 series seems to have serious head-scratching potential… but it’s not something we’ll have to worry about. The LWB sports sedan will only be sold in China, according to Auto Motor und Sport, where upmarket buyers favor chauffeurs… even in the Ultimate Driving Machine.

SvD.se reports that Paul Akerlund, Saab’s former IF Metall (one of Sweden’s largest trade unions) representative and now Trollhättan Municipal Council Chairman, has called for the resignation of Saab CEO Victor Muller, saying

I do not think Victor Muller is a good president. He is an owner and a contractor, but he has not sufficient knowledge about how to manage production and development

And Akerlund is no city government busybody, but a longtime company insider who has been influential in Saab’s post-GM life. Having shepherded Saab through the challenges of the past two years, this is another grim sign that Saab is about to succumb to the realities that have dominated TTAC’s Saab coverage for years now. A commentary in SvD, titled “Thank Muller for Painful Bankruptcy” sums up the somber mood in Sweden:

[Saab] has been on artificial respiration for nearly two years. It is down now, and from all indications we can only conclude that the whole process was a painfully protracted bankruptcy. And we have only one person to thank for it.

Remember Hybrid-Kinetic Motors, the hugely ambitious venture by former Brilliance Chairman Yung Yeung that was supposed to build 300k physics-defying hybrids per year at a brand-new $1.5b Alabama factory (with the modest goal of producing a million vehicles per year by 2018)? H-K Motors was never taken very seriously here at TTAC, and despite appearing to be a visa scam, the firm signed a $500m design deal with Italdesign/Giugiaro, and was reportedly working with a German engineering firm… and Alabama’s Baldwin County sure took the firm seriously. Unfortunately, al.com reports that

In 2009, Chinese company HK Motors had taken notice of the megasite and announced plans to build a $4.36 billion green energy automobile manufacturing plant that would employ 4,000 workers.

Under a plan unveiled two years ago, the Pasadena, Calif.-based subsidiary of Hybrid Kinetic Group Ltd., of Hong Kong, would start production in Baldwin County in 2013. The cars built there would run mainly on compressed natural gas, backed up by electric batteries and a small gasoline tank.
The company announced that it expected to build 300,000 vehicles each year at the outset, with production increasing to 1 million by 2018 by 5,000 local employees. The company purchased a battery manufacturer and other component businesses in subsequent months.

But local officials said last month they would be marketing the site to other companies with HK Motors apparently unable to secure financing for the venture.

I’m sure nobody’s surprised by this at all… after all, I never found anyone who believed a word of the Hybrid Kinetic mumbo-jumbo. But what reminded me of the H-K fiasco, and what led to me to find that it had officially abandoned Baldwin County (after it shouldered $70k in surveying costs, no less) was news that a hybrid van manufacturer is setting up shop in St Louis, which has lost Ford and Chrysler plants. What reminded me of the H-K situation? “Emerald Automotive Limited,” which is promising 600 UAW-represented jobs and gas- and diesel-electric delivery van production by the end of next year, doesn’t have a freaking website. That’s never a good sign…

[UPDATE: Fiat press release outlining the complete new management structure added]

The awaited consolidation of Fiat and Chrysler operations is complete, reports Bloomberg, and CEO Sergio Marchionne is taking the North American job for himself. Joining Marchionne at the top of the company’s new regionally-based divisions, are Gianni Coda, former head of purchasing at Fiat and now the boss of European, African and Middle East operation; Cledorvino Belini, erstwhile head of Fiat in Brazil is now in charge of all of South America; Michael Manley, previously boss of the Jeep brand, will be leading the firm’s effort Asia. These four regional bosses will be part of a 22-member “group executive council” which will manage all of Fiat and Chrysler’s operations. The details of the council’s makeup still haven’t been released, but the big news is well encapsulated by a quote from Gianluca Spina, chairman of the business school at Polytechnic University of Milan.

Marchionne’s decision to keep the role of overseeing the business in North America shows that the center of gravity of the combined entity will be in the U.S… The integration process is going extremely fast, as is Marchionne’s style.

(Read More…)

Former TVR owner Peter Wheeler used to explain the lack of airbags in his firm’s high-powered sportscars by arguing drivers would be safer if he installed a metal spike in the middle of each steering wheel. That was back in the late 1990s and early 2000s… since then, the rise of adaptive cruise control, “attention assist” systems, collision-sensing brake pre-loading and more have only made his critique all the more provocative. And, according to research cited in a Wired Magazine report, Wheeler’s philosophy seems to have a strong basis in science.

“The point the automakers are making, which is true, is that they go to extreme lengths to make these systems work and extremely reliable,” [Stanford University’s Clifford] Nass said. “The reliability on these systems is very high. If you have automatic cruise control, it’s not extremely often you have to jump into the fray.”

Therein lies the problem. We come to count on our cars to keep us out of trouble, even in situations where the technology isn’t designed to.

“Road hazards other than the car in front of you are so rare, especially on the highway where these adaptive cruise control systems would be in play, that they would, over time, encourage a complacency that undermines safety,” said Erik Blaser, a psychology professor at the University of Massachusetts, Boston, who studies vision and perception. “You stop paying attention to the driving.”

Though these “semiautonomous” systems are sold as safety equipment, researchers argue that they create a sense of reliance that actually makes drivers less safe (unlike “secret” safety systems like stability control and ABS, which operate consistently without the driver’s knowledge). And, somewhat counterintuitively, these researchers argue that the rise of semiautonomous driver aids actually increases the need for life-long driver eduation.

(Read More…)